Document:

exv10w1

 

EXHIBIT 10.1

 

 

Published CUSIP Number:                     

AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of June 16, 2006

among

CRICKET COMMUNICATIONS, INC.,

as the Borrower,

LEAP WIRELESS INTERNATIONAL, INC.,

as Holdings,

BANK OF AMERICA, N.A.,

as Administrative Agent and L/C Issuer,

GOLDMAN SACHS CREDIT PARTNERS L.P.

as Documentation Agent,

and

The Other Lenders Party Hereto

BANC OF AMERICA SECURITIES LLC and

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Joint Lead Arrangers

and

Joint Book Managers

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	Section	 	 	 	Page	 
	ARTICLE I
	DEFINITIONS AND ACCOUNTING TERMS
	1.01	 	Defined Terms
	 	 	1	 
	1.02	 	Other Interpretive Provisions
	 	 	39	 
	1.03	 	Accounting Terms
	 	 	40	 
	1.04	 	Rounding
	 	 	40	 
	1.05	 	Times of Day
	 	 	40	 
	1.06	 	Letter of Credit Amounts
	 	 	41	 
	1.07	 	Currency Equivalents Generally
	 	 	41	 
	 	 	 
	 	 	 	 
	ARTICLE II
	THE COMMITMENTS AND CREDIT EXTENSIONS
	 	 	 
	 	 	 	 
	2.01	 	The Loans
	 	 	41	 
	2.02	 	Borrowings, Conversions and Continuations of Loans
	 	 	42	 
	2.03	 	Letters of Credit
	 	 	43	 
	2.04	 	Prepayments
	 	 	51	 
	2.05	 	Termination or Reduction of Commitments
	 	 	54	 
	2.06	 	Repayment of Loans
	 	 	55	 
	2.07	 	Interest
	 	 	56	 
	2.08	 	Fees
	 	 	56	 
	2.09	 	Computation of Interest and Fees
	 	 	57	 
	2.10	 	Evidence of Debt
	 	 	57	 
	2.11	 	Payments Generally; Administrative Agent’s Clawback
	 	 	58	 
	2.12	 	Sharing of Payments by Lenders
	 	 	60	 
	2.13	 	Increase in Commitments
	 	 	60	 
	 	 	 
	 	 	 	 
	ARTICLE III
	TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	 
	 	 	 	 
	3.01	 	Taxes
	 	 	62	 
	3.02	 	Illegality
	 	 	65	 
	3.03	 	Inability to Determine Rates
	 	 	65	 
	3.04	 	Increased Costs; Reserves on Eurodollar Rate Loans
	 	 	65	 
	3.05	 	Compensation for Losses
	 	 	67	 
	3.06	 	Mitigation Obligations; Replacement of Lenders
	 	 	67	 
	3.07	 	Survival
	 	 	68	 
	 	 	 
	 	 	 	 
	ARTICLE IV
	CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	 	 	 
	 	 	 	 
	4.01	 	Conditions of Initial Credit Extension
	 	 	68	 
	4.02	 	Conditions to all Credit Extensions
	 	 	73	 

 

 

	 	 	 	 	 	 	 
	Section	 	 	 	Page	 
	 	 	 
	 	 	 	 
	ARTICLE V
	REPRESENTATIONS AND WARRANTIES
	 	 	 
	 	 	 	 
	5.01	 	Existence, Qualification and Power; Compliance with Laws
	 	 	74	 
	5.02	 	Authorization; No Contravention
	 	 	74	 
	5.03	 	Governmental Authorization; Other Consents
	 	 	74	 
	5.04	 	Binding Effect
	 	 	75	 
	5.05	 	Financial Statements; No Material Adverse Effect
	 	 	75	 
	5.06	 	Litigation
	 	 	76	 
	5.07	 	No Default
	 	 	76	 
	5.08	 	Ownership of Property; Liens; Investments
	 	 	76	 
	5.09	 	Environmental Compliance
	 	 	77	 
	5.10	 	Insurance
	 	 	77	 
	5.11	 	Taxes
	 	 	77	 
	5.12	 	ERISA Compliance
	 	 	78	 
	5.13	 	Subsidiaries; Equity Interests; Loan Parties
	 	 	78	 
	5.14	 	Margin Regulations; Investment Company Act; Public Utility Holding Company Act
	 	 	79	 
	5.15	 	Disclosure
	 	 	79	 
	5.16	 	Compliance with Laws
	 	 	79	 
	5.17	 	Intellectual Property; Licenses, Etc.
	 	 	79	 
	5.18	 	Solvency
	 	 	80	 
	5.19	 	Qualified Designated Entity Agreements
	 	 	80	 
	 	 	 
	 	 	 	 
	ARTICLE VI
	AFFIRMATIVE COVENANTS
	 	 	 
	 	 	 	 
	6.01	 	Financial Statements
	 	 	80	 
	6.02	 	Certificates; Other Information
	 	 	81	 
	6.03	 	Notices
	 	 	84	 
	6.04	 	Payment of Obligations
	 	 	85	 
	6.05	 	Preservation of Existence, Etc.
	 	 	85	 
	6.06	 	Maintenance of Properties
	 	 	85	 
	6.07	 	Maintenance of Insurance
	 	 	85	 
	6.08	 	Compliance with Laws
	 	 	86	 
	6.09	 	Books and Records
	 	 	86	 
	6.10	 	Inspection Rights
	 	 	86	 
	6.11	 	Use of Proceeds
	 	 	86	 
	6.12	 	Covenant to Guarantee Obligations and Give Security
	 	 	86	 
	6.13	 	Compliance with Environmental Laws
	 	 	89	 
	6.14	 	Provision and Preparation of Environmental Reports
	 	 	89	 
	6.15	 	Further Assurances
	 	 	90	 
	6.16	 	Compliance with Terms of Leaseholds
	 	 	90	 
	6.17	 	Interest Rate Hedging
	 	 	91	 
	6.18	 	Lien Searches
	 	 	91	 
	6.19	 	Cash Collateral Accounts
	 	 	91	 
	6.20	 	Material Contracts
	 	 	91	 

 

 

	 	 	 	 	 	 	 
	Section	 	 	 	Page	 
	6.21	 	Qualified Designated Entities, Joint Venture Entities and Disqualified
Subsidiaries Separateness
	 	 	91	 
	6.22	 	Holding Company
	 	 	94	 
	6.23	 	Qualified Designated Entity Security; Rights as a Creditor
	 	 	95	 
	 	 	 
	 	 	 	 
	ARTICLE VII
	NEGATIVE COVENANTS
	 	 	 
	 	 	 	 
	7.01	 	Liens
	 	 	95	 
	7.02	 	Indebtedness
	 	 	97	 
	7.03	 	Investments
	 	 	100	 
	7.04	 	Fundamental Changes
	 	 	109	 
	7.05	 	Dispositions
	 	 	110	 
	7.06	 	Restricted Payments
	 	 	113	 
	7.07	 	Change in Nature of Business
	 	 	114	 
	7.08	 	Transactions with Affiliates
	 	 	114	 
	7.09	 	Burdensome Agreements
	 	 	115	 
	7.10	 	Financial Covenants
	 	 	115	 
	7.11	 	Use of Proceeds
	 	 	116	 
	7.12	 	Amendments of Organization Documents; Qualified Designated Entity Agreements
	 	 	116	 
	7.13	 	Accounting Changes
	 	 	116	 
	7.14	 	Prepayments, Etc., of Indebtedness
	 	 	116	 
	7.15	 	Partnerships, Etc.
	 	 	116	 
	7.16	 	Speculative Transactions
	 	 	116	 
	7.17	 	Formation of Subsidiaries
	 	 	117	 
	7.18	 	ANB Entity Indebtedness
	 	 	117	 
	7.19	 	Equity Forwards
	 	 	117	 
	 	 	 
	 	 	 	 
	ARTICLE VIII
	EVENTS OF DEFAULT AND REMEDIES
	 	 	 
	 	 	 	 
	8.01	 	Events of Default
	 	 	117	 
	8.02	 	Remedies upon Event of Default
	 	 	120	 
	8.03	 	Application of Funds
	 	 	121	 
	 	 	 
	 	 	 	 
	ARTICLE IX
	ADMINISTRATIVE AGENT
	 	 	 
	 	 	 	 
	9.01	 	Appointment and Authority
	 	 	122	 
	9.02	 	Rights as a Lender
	 	 	123	 
	9.03	 	Exculpatory Provisions
	 	 	123	 
	9.04	 	Reliance by Administrative Agent
	 	 	124	 
	9.05	 	Delegation of Duties
	 	 	124	 
	9.06	 	Resignation of Administrative Agent
	 	 	124	 
	9.07	 	Non-Reliance on Administrative Agent and Other Lenders
	 	 	125	 
	9.08	 	No Other Duties, Etc.
	 	 	126	 
	9.09	 	Administrative Agent May File Proofs of Claim
	 	 	126	 

 

 

	 	 	 	 	 	 	 
	Section	 	 	 	Page	 
	9.10	 	Collateral and Guaranty Matters
	 	 	126	 
	 	 	 
	 	 	 	 
	ARTICLE X
	MISCELLANEOUS
	 	 	 
	 	 	 	 
	10.01	 	Amendments, Etc.
	 	 	127	 
	10.02	 	Notices and Other Communications; Facsimile Copies
	 	 	129	 
	10.03	 	No Waiver; Cumulative Remedies
	 	 	130	 
	10.04	 	Expenses; Indemnity; Damage Waiver
	 	 	130	 
	10.05	 	Payments Set Aside
	 	 	132	 
	10.06	 	Successors and Assigns
	 	 	133	 
	10.07	 	Treatment of Certain Information; Confidentiality
	 	 	138	 
	10.08	 	Right of Setoff
	 	 	139	 
	10.09	 	Interest Rate Limitation
	 	 	139	 
	10.10	 	Counterparts; Integration; Effectiveness
	 	 	140	 
	10.11	 	Survival of Representations and Warranties
	 	 	140	 
	10.12	 	Severability
	 	 	140	 
	10.13	 	Replacement of Lenders
	 	 	140	 
	10.14	 	Governing Law; Jurisdiction; Etc.
	 	 	141	 
	10.15	 	Waiver of Jury Trial
	 	 	142	 
	10.16	 	USA PATRIOT Act Notice
	 	 	142	 
	10.17	 	No Advisory or Fiduciary Responsibility
	 	 	143	 
	 	 	 
	 	 	 	 
	SIGNATURES	 	 	S-1	 

 

 

	 	 	 
	SCHEDULES
	 	 
	 
	 	 
	I
	 	Guarantors
	II
	 	Existing Letter of Credit
	2.01
	 	Commitments and Applicable Percentages
	5.06
	 	Disclosed Litigation
	5.08(b)
	 	Existing Liens
	5.08(c)
	 	Owned Real Property
	5.08(d)
	 	Existing Investments
	5.11
	 	Certain Tax Information
	5.13
	 	Subsidiaries and Other Equity Investments; Loan Parties
	5.17
	 	Intellectual Property Matters
	10.02
	 	Administrative Agent's Office, Certain Addresses for Notices
	10.06
	 	Assignment Fees
	 
	 	 
	EXHIBITS
	 	 
	 
	 	 
	Form of
	 	 
	 
	 	 
	A
	 	Committed Loan Notice
	B-1
	 	Term Note
	B-2
	 	Revolving Credit Note
	C-1
	 	Revolver Maintenance Covenant Compliance Certificate
	C-2
	 	Senior Secured Leverage Covenant Compliance Certificate
	D
	 	Assignment and Assumption
	E-1
	 	Amended and Restated Parent Guaranty
	E-2
	 	Amended and Restated Subsidiary
Guaranty
	F
	 	Amended and Restated Security
Agreement
	G
	 	Intellectual Property Security Agreement
	H-1
	 	Opinion Matters -- Counsel to Loan Parties
	H-2
	 	Opinion Matters -- Local Counsel to Loan Parties

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

          This
AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”) is entered into as of June 16, 2006,
among CRICKET COMMUNICATIONS, INC., a Delaware corporation (the
“Borrower”), LEAP WIRELESS
INTERNATIONAL, INC., a Delaware corporation (“Holdings”), each lender from time to time party
hereto (collectively, the “Lenders” and
individually, a “Lender”), and BANK OF AMERICA, N.A., as
Administrative Agent and L/C Issuer.

          Holdings and the Borrower are parties to a Credit Agreement dated as of January 10, 2005 (as
amended by Amendment No. 1 dated as of July 22, 2005 and Amendment No. 2 dated as of July 22, 2005,
the “Existing Credit Agreement”) with the lenders from time to time party thereto and Bank of
America, as Administrative Agent and L/C Issuer.

          The Borrower desires to amend and restate the Existing Credit Agreement as hereinafter set
forth to provide for $900,000,000 of Term B Loans and $200,000,000 of Revolving Credit Commitments
(the “Refinancing”) and to obtain financing for the purchase and build-out of FCC Licenses,
including licenses purchased from the Federal Communications
Commission (the “FCC”) in the
“Advanced Wireless Service” auction by the FCC of FCC Licenses in the 1710-1755 MHZ and 2110-2155
MHZ spectrum ranges (also known as Auction No. 66) (“Auction 66”). In addition the Borrower
desires to obtain financing for ongoing working capital, acquisitions, acquisition-related
build-outs, Investments and general corporate purposes of Holdings and its Subsidiaries (as
hereinafter defined).

          The Borrower has requested that the Lenders provide a revolving credit facility and a term
loan B facility, and the Lenders have indicated their willingness to lend and their willingness for
the L/C Issuers to issue Letters of Credit, and the L/C Issuers have indicated their willingness to
so issue Letters of Credit, in each case, on the terms and subject to the conditions set forth
herein.

          In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree to amend and restate the Existing Credit Agreement as follows:

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

          1.01 Defined Terms. As used in this Agreement, the following terms shall have the
meanings set forth below:

          “Acquisition” means the purchase or other acquisition of all of the Equity Interests in, or
substantially all of the property and assets of, or assets that constitute a business unit, or all
or a substantial part of the business of, a Person, that upon consummation thereof, will be
wholly-owned directly by the Borrower or one or more other Loan Parties and, in the case of a
purchase or other acquisition of Equity Interests of a Person, such Person will itself be either a
Disqualified Subsidiary or a Loan Party (including the purchase or other acquisition of all of the
remaining Equity Interests in a Qualified Designated Entity or Joint Venture Entity to the extent  that the consideration for such purchase or acquisition consisted of common Equity Interests
of

 

 

Holdings or Qualified Preferred Stock or if such Person does not thereupon constitute a
Disqualified Subsidiary).

          “Administrative Agent” means Bank of America in its capacity as administrative agent under any
of the Loan Documents, or any successor or replacement administrative agent.

          “Administrative Agent’s Office” means the Administrative Agent’s address and, as appropriate,
account as set forth on Schedule 10.02, or such other address or account as the
Administrative Agent may from time to time notify to the Borrower and the Lenders.

          “Administrative Questionnaire” means an Administrative Questionnaire in a form supplied by the
Administrative Agent.

          “Affiliate” means, with respect to any Person, another Person that directly, or indirectly
through one or more intermediaries, Controls or is Controlled by or is under common Control with
the Person specified.

          “Agents” means, collectively, the Administrative Agent and the Documentation Agents.

          “Aggregate Commitments” means the Commitments of all the Lenders.

          “Aggregate Credit Exposures” means, at any time, in respect of (i) the Term B Facility, the
aggregate amount of the Term B Loans outstanding at such time and (ii) the Revolving Credit
Facility, the sum of (x) the unused portion of the Revolving Credit Facility at such time and (y)
the Total Revolving Credit Outstandings at such time.

          “Agreement” means this Credit Agreement and the Schedules and Exhibits hereto.

          “Agreement Value” means, with respect to each Swap Contract on any date of determination, an
amount equal to the greater of:

     (a) (i) in the case of any Swap Contract documented pursuant to the ISDA Master
Agreement, the amount, if any, that would be payable by any of the Loan Parties or any of
their Subsidiaries to its counterparty to such Swap Contract, as if (A) such Swap Contract
was being terminated early on such date of determination, (B) such Loan Party or such
Subsidiary, as the case may be, was the sole Affected Party (as defined in the applicable
Master Agreement) and (C) the Administrative Agent was the sole party determining such
payment amount (with the Administrative Agent making such determination pursuant to the
provisions of the form of Master Agreement); or (ii) in the case of a Swap Contract traded
on an exchange, the mark-to-market value of such Swap Contract, which will be the unrealized
loss on such Swap Contract to the Loan Party or the Subsidiary of a Loan Party party to such
Swap Contract (determined by the Administrative Agent based on the settlement price of such
Swap Contract on such date); or

 

 

     (b) in all other cases, the mark-to-market value of such Swap Contract, which will be
the unrealized loss on such Swap Contract to the Loan Party or the Subsidiary of a Loan
Party party to such Swap Contract (determined by the Administrative Agent based on the
amount, if any, by which (i) the present value of the future cash flows to be paid by such
Loan Party or such Subsidiary of a Loan Party, as the case may be, exceeds (ii) the present
value of the future cash flows to be received by such Loan Party or such Subsidiary of a
Loan Party pursuant to such Swap Contract).

          “ANB 1” means Alaska Native Broadband 1, LLC, a Delaware limited liability company, and its
successors.

          “ANB 1 License” means Alaska Native Broadband 1 License, LLC, a Delaware limited liability
company, and its successors.

          “ANB Credit Agreement” means the credit agreement dated as of December 22, 2004 among ANB 1
License, as borrower, ANB 1, as guarantor and the Borrower, as lender, as amended by Amendment No.
1 dated as of January 26, 2005, by Amendment No. 2 dated as of June 24, 2005, by Amendment No. 3
dated as of August 26, 2005, by Amendment No. 4 dated as of January 9, 2006 and by Amendment No. 5
dated as of April 24, 2006 and as further amended or supplemented from time to time to the extent
permitted by Section 7.18.

          “ANB Credit Documents” means the ANB Credit Agreement and the ANB Security Documents.

          “ANB Entity” means ANB 1 or ANB 1 License and “ANB Entities” means ANB 1 and ANB 1 License,
collectively.

          “ANB Equity Documents” means (a) the Amended and Restated Limited Liability Company Agreement
of ANB 1 dated as of December 22, 2004, as amended by Amendment No. 1 dated as of August 26, 2005,
by Amendment No. 2 dated as of January 9, 2006 and by Amendment No. 3 dated as of April 24, 2006,
and as further amended or supplemented from time to time to the extent permitted by Section
7.12 and (b) the Amended and Restated Limited Liability Company Agreement of ANB 1 License
dated as of December 22, 2004, as amended or supplemented from time to time to the extent permitted
by Section 7.12.

          “ANB Security Documents” means (a) the Security Agreement dated as of December 22, 2004 among
the ANB Entities, as grantors, and the Borrower, as lender as amended by Amendment No. 1 dated as
of January 9, 2006 and as further amended or supplemented from time to time to the extent permitted
by Section 7.18, (b) the Guarantor Pledge Agreement dated as of December 22, 2004 between
ANB 1, as grantor, and the Borrower, as lender, as amended by Amendment No. 1 dated as of January
9, 2006 and as further amended or supplemented from time to time to the extent permitted by
Section 7.18 and (c) the ANB Negative Pledge Agreement between Alaska Native Broadband, LLC
and the Borrower, as amended by Amendment No. 1 dated as of January 9, 2006 and as further amended
or supplemented from time to time to the extent permitted by Section 7.18 and in each case,
all documents and instruments delivered by the ANB Entities pursuant to any of the foregoing.

 

 

          “Applicable Fee Rate” means the following percentages per annum, based upon the Consolidated
Senior Secured Leverage Ratio as set forth in the most recent Senior Secured Leverage Covenant
Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a):

	 	 	 	 	 
	 	 	Consolidated Senior	 	 
	Pricing	 	Secured Leverage	 	Applicable
	Level	 	Ratio	 	Fee Rate
	1
	 	<2.50:1
	 	0.25%
	2
	 	>2.50:1 but <3.50:1
	 	0.375% 
	3
	 	>3.50:1
	 	0.50%

Any increase or decrease in the Applicable Fee Rate resulting from a change in the
Consolidated Senior Secured Leverage Ratio shall become effective as of the first Business Day of
the calendar quarter in which such Senior Secured Leverage Covenant Compliance Certificate is
delivered pursuant to Section 6.02(a); provided, however, that if a Senior
Secured Leverage Covenant Compliance Certificate is not delivered when due in accordance with such
Section, then Pricing Level 3 shall apply as of the first Business Day after the date on which such
Senior Secured Leverage Covenant Compliance Certificate was required to have been delivered until
the first Business Day immediately following delivery of a Senior Secured Leverage Covenant
Compliance Certificate.

          “Applicable Percentage” means (i) in respect of the Term B Facility, with respect to any Term
B Lender at any time, the percentage (carried out to the ninth decimal place) of the Term B
Facility represented by (x) on or prior to the Closing Date, such Term B Lender’s Term B Commitment
at such time and (y) thereafter, the principal amount of such Term B Lender’s Term B Loans at such
time and (ii) in respect of the Revolving Credit Facility, with respect to any Revolving Credit
Lender at any time, the percentage (carried out to the ninth decimal place) of the Revolving Credit
Facility represented by such Revolving Credit Lender’s Revolving Credit Commitment at such time.
If the Revolving Credit Commitment of each Revolving Credit Lender to make Revolving Credit Loans
and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to
Section 8.02, or if the Revolving Credit Commitments have expired, then the Applicable
Percentage of each Revolving Credit Lender in respect of the Revolving Credit Facility shall be
determined based on the Applicable Percentage of such Revolving Credit Lender in respect of the
Revolving Credit Facility most recently in effect, giving effect to any subsequent assignments.
The initial Applicable Percentage of each Lender in respect of each Facility is set forth opposite
the name of such Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to
which such Lender becomes a party hereto, as applicable.

          “Applicable Rate” means (a) in respect of the Term B Facility, a rate per annum determined by
reference to the corporate family debt rating of Holdings in effect from time to time as most
recently announced by Moody’s and S & P, as set forth in the following table:

 

 

	 	 	 	 	 
	Rating	 	Eurodollar Rate	 	Base Rate
	B2 (stable outlook) or better by

Moody’s and B- (stable outlook) or

better by S&P
	 	2.50%
	 	1.50%
	Otherwise
	 	2.75%
	 	1.75%

     and (b) in respect of the Revolving Credit Facility, (x) until the date which is six months
after the Closing Date, (i) 2.75% per annum for Eurodollar Rate Loans and (ii) 1.75% per annum for
Base Rate Loans, in each case as the same may be increased pursuant to Section 2.13(g), and
(y) from and after the date which is six months after the Closing Date, the following percentages
per annum, based upon the Consolidated Senior Secured Leverage Ratio as set forth in the most
recent Senior Secured Leverage Covenant Compliance Certificate received by the Administrative Agent
pursuant to Section 6.02(a), in each case as the same may be increased pursuant to
Section 2.13(g):

	 	 	 	 	 	 	 
	Applicable Rate
	 	 	 	 	Eurodollar	 	 
	 	 	Consolidated Senior	 	Rate +	 	 
	Pricing	 	Secured Leverage	 	Letters of	 	 
	Level	 	Ratio	 	Credit	 	Base Rate
	1
	 	<2.50:1
	 	2.00%
	 	1.00%
	2
	 	>2.50:1 but <3.00:1
	 	2.25%
	 	1.25%
	3
	 	>3.00:1 but <3.50:1
	 	2.50%
	 	1.50%
	4
	 	>3.50:1
	 	2.75%
	 	1.75%

Any increase or decrease in the Applicable Rate resulting from a change in the Consolidated Senior
Secured Leverage Ratio shall become effective as of the first Business Day immediately following
the date a Senior Secured Leverage Covenant Compliance Certificate is delivered pursuant to
Section 6.02(a); provided, however, that if a Senior Secured Leverage
Covenant Compliance Certificate is not delivered when due in accordance with such Section, then
Pricing Level 4 shall apply as of the first Business Day after the date on which such Senior
Secured Leverage Covenant Compliance Certificate was required to have been delivered until the
first Business Day immediately following delivery of a Senior Secured Leverage Covenant Compliance
Certificate. The “Applicable Rate” in respect of any Incremental Facility shall be as agreed by
the Borrower and the Lenders having Commitments under such Incremental Facility, subject to
Section 2.13(g).

          “Applicable Revolving Credit Percentage” means with respect to any Revolving Credit Lender at
any time, such Revolving Credit Lender’s Applicable Percentage in respect of the Revolving Credit
Facility at such time.

          “Appropriate Lender” means, at any time, (a) with respect to the Term B Facility or the
Revolving Credit Facility, a Lender that has a Commitment with respect to such Facility at such
time and (b) with respect to the Letter of Credit Sublimit, (i) the L/C Issuer and (ii) if any
Letters of Credit have been issued pursuant to Section 2.03(a), the Revolving Credit
Lenders.

 

 

          “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

          “Assignee
Group” means two or more Eligible Assignees that are
Affiliates of one another or two or more Approved Funds managed by
the same investment advisor.

          “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an
Eligible Assignee (with the consent of any party whose consent is required by Section
10.06(b)), and accepted by the Administrative Agent, in substantially the form of Exhibit
D or any other form approved by the Administrative Agent.

          “Attributable Indebtedness” means, on any date, (a) in respect of any Capitalized Lease of any
Person, the capitalized amount thereof that would appear on a balance sheet of such Person prepared
as of such date in accordance with GAAP, (b) in respect of any Synthetic Lease Obligation, the
capitalized amount of the remaining lease or similar payments under the relevant lease or other
applicable agreement or instrument that would appear on a balance sheet of such Person prepared as
of such date in accordance with GAAP if such lease or other agreement or instrument were accounted
for as a Capitalized Lease and (c) all Synthetic Debt of such Person.

          “Auction 66 Entity” means a Qualified Designated Entity that participates (either itself or
through a Subsidiary) as a bidder in Auction 66 or, if such auction has not yet commenced, a
Qualified Designated Entity that intends to participate (either itself or through a Subsidiary) as
a bidder in such auction.

          “Auction 66 Priority Put Right” means the first priority security interest in the collateral
of the Auction 66 Entities, which security interest is held by the investors in the Auction 66
Entities (other than Holdings and its Subsidiaries) to secure the rights of such investors to
receive (i) their accreted return under the Formation Agreement on or after the Reference Date (as
defined in the Formation Agreement) and (ii) payment in full for the purchase of their Equity
Interests in the Auction 66 Entities, plus the accreted return thereon, on or after the Tenth
Anniversary Date (as defined in the Formation Agreement), up to an aggregate amount of
$200,000,000.

          “Auction Rate Note” means a floating-rate note with an interest rate that is reset on the
basis of bids received at a “Dutch auction” conducted near the end of each rate period.

          “Audited Financial Statements” means the audited consolidated balance sheet of Holdings and
its Subsidiaries (including any Qualified Designated Entities and Joint Venture Entities that are
required under GAAP to be consolidated with Holdings and its Subsidiaries) for the fiscal year
ended December 31, 2005, and the related consolidated statements of income or operations,
shareholders’ equity and cash flows for such fiscal year of Holdings and its Subsidiaries
(including any Qualified Designated Entities and Joint Venture Entities that are required under
GAAP to be consolidated with Holdings and its Subsidiaries), including the notes thereto.

          “Availability Period” means, in respect of the Revolving Credit Facility, the period from and
including the Closing Date to the earliest of (i) the Maturity Date for the Revolving Credit
Facility, (ii) the date of termination in whole of the Revolving Credit
Commitments pursuant to Section 2.05, and (iii) the date of termination in whole of
the

 

 

commitment of each Revolving Credit Lender to make Revolving Credit Loans and of the obligation
of the L/C Issuer to make L/C Credit Extensions pursuant to Section 8.02.

          “Available Cash Flow Basket” means as of any date of determination the sum, without
duplication, of (i) cumulative Consolidated EBITDA since April 1, 2006 minus (ii) (1) the
amount of cumulative Consolidated Interest Charges since April 1, 2006 multiplied by (2) 1.5
minus (iii) the amount of cumulative Capital Expenditures made since the date of this
Agreement (excluding Capital Expenditures that are excluded from the calculation of Consolidated
Fixed Charge Coverage Ratio pursuant to clause (a)(ii) of the definition thereof)
plus (iv) cash proceeds of capital contributions to and issuances or sales of Equity
Interests by Holdings otherwise permitted under this Agreement minus (v) the cumulative
amount of (A) Investments in excess of $150,000,000 in the aggregate made pursuant to Section
7.03(k) (including as a result of the treatment of Investments previously made under
Section 7.03(n) as being made under Section 7.03(k) pursuant to the terms thereof),
other than (1) Acquisitions, (2) Permitted Unsecured QDE Investments, (3) Excluded Assumed
Liabilities, (4) capitalized interest on Indebtedness owed to Loan Parties by a Joint Venture
Entity or a Qualified Designated Entity and (5) Stock-Pay Obligations, (B) Investments made
pursuant to Section 7.03(n) other than (1) Investments in the form of loans to the relevant
Qualified Designated Entity secured by substantially all of the assets of such Qualified Designated
Entity, (other than FCC licenses and non-owned real property) on the terms required by Section
7.03(n)(vi), (2) Investments made with proceeds of unsecured Indebtedness of the Loan Parties
otherwise permitted under this Agreement, (3) Permitted QDE Equity Investments, (4) Permitted
Unsecured QDE Investments, (5) Excluded Assumed Liabilities and (6) Stock-Pay Obligations, (C)
Investments in the form of Permitted Debt Put Rights under Section 7.03(n) to the extent
actually satisfied in cash and (D) Restricted Payments made other than pursuant to any of
clauses (i) through (vii) of Section 7.06(a), in each case, since the date
of this Agreement.

          “Bank of America” means Bank of America, N.A. and its successors.

          “BAS” means Banc of America Securities LLC and its successors.

          “Base Rate” means for any day a fluctuating rate per annum equal to the higher of (a) the
Federal Funds Rate plus 1/2 of 1% and (b) the rate of interest in effect for such day as publicly
announced from time to time by Bank of America as its “prime rate.” The “prime rate” is a rate set
by Bank of America based upon various factors including Bank of America’s costs and desired return,
general economic conditions and other factors, and is used as a reference point for pricing some
loans, which may be priced at, above, or below such announced rate. Any change in such rate
announced by Bank of America shall take effect at the opening of business on the day specified in
the public announcement of such change.

          “Base Rate Loan” means a Loan that bears interest based on the Base Rate.

          “Borrower” has the meaning specified in the introductory paragraph hereto.

          “Borrowing” means a Revolving Credit Borrowing or a Term B Borrowing, as the context may
require.

 

 

          “Business Day” means any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the Laws of, or are in fact closed in, the state where the
Administrative Agent’s Office is located and, if such day relates to any Eurodollar Rate Loan,
means any such day on which dealings in Dollar deposits are conducted by and between banks in the
London interbank eurodollar market.

          “Capital Expenditures” means, with respect to any Person for any period, any expenditure in
respect of the purchase or other acquisition of any fixed or capital asset (which shall be deemed
not to include any FCC License) (excluding normal replacements and maintenance which are properly
charged to current operations).

          “Capitalized Leases” means all leases that, in accordance with GAAP, are required to be
classified and accounted for as capitalized leases on a balance sheet of a Person.

          “Cash Collateral Account” means a blocked, non-interest bearing deposit account of one or more
of the Loan Parties at Bank of America (or another commercial bank selected in compliance with
Section 6.19) in the name of the Collateral Agent and under the sole dominion and control
of the Collateral Agent, and otherwise established in a manner satisfactory to the Administrative
Agent.

          “Cash Collateral” has the meaning specified in Section 2.03(g).

          “Cash Collateralize” has the meaning specified in Section 2.03(g).

          “Cash Distributions” means, with respect to any Person for any period, all dividends and other
distributions on any of the outstanding Equity Interests in such Person, all purchases,
redemptions, retirements, defeasances or other acquisitions of any of the outstanding Equity
Interests in such Person and all returns of capital to the stockholders, partners or members (or
the equivalent persons) of such Person, in each case to the extent paid in cash by or on behalf of
such Person during such period.

          “Cash Equivalents” means any of the following types of Investments, to the extent owned by
Holdings or any of its Subsidiaries:

     (a) readily marketable obligations issued or directly and fully guaranteed or insured
by the United States of America or any agency or instrumentality thereof having maturities
of not more than one year from the date of acquisition thereof;

     (b) time deposits or demand deposits with, or insured certificates of deposit or
bankers’ acceptances maturing within one year of the date of acquisition thereof issued or
placed with, or money market deposit accounts issued or offered by, any commercial bank that
(i) (A) is a Lender or (B) is organized under the laws of the United States of America, any
state thereof or the District of Columbia or is the principal banking subsidiary of a bank
holding company organized under the laws of the United States of America, any state thereof
or the District of Columbia, and is a member of the Federal Reserve System, (ii) issues (or
the parent of which issues) commercial paper rated as described in clause (c) of
this definition and (iii) has combined capital and surplus of at least $500,000,000;

 

 

     (c) commercial paper outstanding at any time issued by any Person organized under the
laws of any state of the United States of America and rated at least “Prime-1” (or the then
equivalent grade) by Moody’s or at least “A-1” (or the then equivalent grade) by S&P, in
each case with maturities of not more than 270 days from the date of acquisition thereof;

     (d) securities with maturities of not more than one year from the date of acquisition
thereof issued or fully guaranteed by any state, territory or municipality of the United
States of America or by any political subdivision, taxing authority, agency or
instrumentality thereof and rated at least A by S&P or A by Moody’s;

     (e) insured demand deposits made in the ordinary course of business and consistent with
Holdings’ or its Subsidiaries’ customary cash management policy in any domestic office of
any commercial bank organized under the laws of the United States of America or any state
thereof;

     (f) repurchase obligations with a term of not more than 90 days for, and secured by,
underlying securities of the types described in clauses (a) through (c) of this
definition entered into with a bank meeting the qualifications described in clause
(b) of this definition;

     (g) Auction Rate Notes with a maximum time between interest rate resets of one month
and a rating of at least A by S&P or A by Moody’s; and

     (h) Investments, classified in accordance with GAAP as Current Assets of Holdings or
any of its Subsidiaries, in money market mutual funds or investment programs registered
under the Investment Company Act of 1940, the portfolios of which are limited solely to
Investments of the character, quality and maturity described in clauses (a) through
(g) of this definition.

          “CFC” means a “controlled foreign corporation” under Section 957 of the Code.

          “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any
change in any law, rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority or (c) the making or issuance of any request,
guideline or directive (whether or not having the force of law) by any Governmental Authority.

          “Change of Control” means, an event or series of events by which:

     (a) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, but excluding any employee benefit plan of such person or
its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other
fiduciary or administrator of any such plan) becomes the “beneficial owner” (as defined in
Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or
group shall be deemed to have “beneficial ownership” of all securities that such person or
group has the right to acquire (such right, an “option right”), to the extent that such
right is exercisable within 60 days after the date of determination), directly or

 

 

indirectly, of 35% or more of the equity securities of Holdings entitled to vote for
members of the board of directors or equivalent governing body of Holdings on a fully
diluted basis (and taking into account all such securities that such “person” or “group” has
the right to acquire pursuant to any option right to the extent that such option right is
exercisable within 60 days after the date of determination); or

     (b) during any period of 12 consecutive months, a majority of the members of the board
of directors or other equivalent governing body of the Borrower or Holdings cease to be
composed of individuals (i) who were members of that board or equivalent governing body on
the first day of such period, (ii) whose election or nomination to that board or equivalent
governing body was approved by individuals referred to in clause (i) above
constituting at the time of such election or nomination at least a majority of that board or
equivalent governing body or (iii) whose election or nomination to that board or other
equivalent governing body was approved by individuals referred to in clauses (i) and
(ii) above constituting at the time of such election or nomination at least a
majority of that board or equivalent governing body (excluding, in the case of both
clause (ii) and clause (iii), any individual whose initial nomination for,
or assumption of office as, a member of that board or equivalent governing body occurs as a
result of an actual or threatened solicitation of proxies or consents for the election or
removal of one or more directors by any person or group other than a solicitation for the
election of one or more directors by or on behalf of the board of directors); or

     (c) any Person or two or more Persons acting in concert shall have entered into a
contract or arrangement that, upon consummation thereof, will result in its or their
acquisition of or control over the equity securities of Holdings entitled to vote for
members of the board of directors or equivalent governing body of the Borrower or Holdings
on a fully-diluted basis (and taking into account all such securities that such person or
group has the right to acquire pursuant to any option right to the extent that such option
right is exercisable within 60 days after the date of determination) representing 35% or
more of the combined voting power of such securities; or

     (d) Holdings shall cease, directly or indirectly, to own and control legally and
beneficially all of the Equity Interests in the Borrower; or

     (e) a “change of control” or any comparable term under, and as defined in, the document
governing any Permitted Unsecured Debt or Permitted Bridge Debt shall have occurred.

          “Closing Date” means the first date on which all the conditions precedent in Section
4.01 are satisfied or waived in accordance with Section 10.01 and the initial Credit
Extension hereunder is made.

          “Code” means the Internal Revenue Code of 1986 as amended.

          “Collateral” means all of the “Collateral” referred to in the Collateral Documents and all of
the other property and assets that are or are purported under the terms of the Collateral

 

 

Documents to be subject to Liens in favor of the Administrative Agent for the benefit of the
Secured Parties.

          “Collateral Agent” means Bank of America in its capacity as collateral agent under the
Security Agreement or any successor or replacement collateral agent.

          “Collateral Documents” means, collectively, the Security Agreement, the Intellectual Property
Security Agreement, each of the mortgages, collateral assignments, Security Agreement Supplements,
IP Security Agreement Supplements, security agreements, pledge agreements or other similar
agreements delivered to the Administrative Agent and the Lenders pursuant to Section 6.12,
and each of the other agreements, instruments or documents that creates or purports to create a
Lien in favor of the Administrative Agent for the benefit of the Secured Parties.

          “Commitment” means a Term B Commitment or a Revolving Credit Commitment, as the context may
require.

          “Committed Loan Notice” means a notice of (a) a Term B Borrowing, (b) a Revolving Credit
Borrowing, (c) a conversion of Loans from one Type to the other, or (d) a continuation of
Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be
substantially in the form of Exhibit A.

          “Consolidated EBITDA” means, for any Measurement Period, an amount equal to Consolidated Net
Income for such period plus (a) the following to the extent deducted in calculating such
Consolidated Net Income (without duplication): (i) Consolidated Interest Charges for such period,
(ii) all Federal, state, local and foreign income tax expense deducted in arriving at Consolidated
Net Income, (iii) depreciation and amortization expense, (iv) non-cash impairment of assets
(tangible and intangible) and related non-cash charges, (v) non-cash charges and expenses related
to stock-based compensation awards made by Holdings and its Subsidiaries (including any Qualified
Designated Entities and Joint Venture Entities that are required under GAAP to be consolidated with
Holdings and its Subsidiaries), (vi) net non-cash reorganization expenses and charges (but only to
the extent not excluded from Consolidated Net Income), (vii) non-cash dividends or other
distributions made with respect to Qualified Preferred Stock, (viii) other non-recurring expenses
reducing such Consolidated Net Income which do not represent a cash item in such period or any
future period and (ix) for any Measurement Period ending on or prior to May 31, 2010, of not more
than $75,000,000 of operating losses (determined in accordance with GAAP) incurred during such
Measurement Period in markets that at the time of such loss either were not yet in commercial
operation or had been in commercial operation for one year or less (but only to the extent of
losses incurred prior to or within one year after commercial launch of the relevant market)
minus (b) the following to the extent included in calculating such Consolidated Net Income
(without duplication): (i) Federal, state, local and foreign income tax credits of Holdings and
its Subsidiaries (including any Qualified Designated Entities and Joint Venture Entities that are
required under GAAP to be consolidated with Holdings and its Subsidiaries) for such period, (ii)
all non-cash gains arising in relation to any FCC Licenses, (iii) all non-recurring non-cash items
increasing Consolidated Net Income for such period and (iv) all non-recurring cash items in excess
of $25,000,000 in the aggregate increasing Consolidated Net Income for such period (excluding, for
each of the

 

 

Measurement Periods ended June 30, 2006 and September 30, 2006, $15,000,000 in cash gains from
the sale of assets including FCC Licenses to Cellco Partnership (d/b/a Verizon Wireless) pursuant
to the asset purchase agreement dated as of March 11, 2005).

          “Consolidated Fixed Charge Coverage Ratio” means, as of any date of determination, the ratio
of (a) (i) Consolidated EBITDA less (ii) the aggregate amount of all Capital Expenditures
(other than (A) Capital Expenditures made in connection with acquisitions or acquisition-related
build outs during the period prior to or within one year after commercial launch of the relevant
market and (B) Capital Expenditures in an aggregate amount not to exceed $150,000,000 made prior to
December 31, 2007 in connection with the upgrade of the Borrower’s networks to support the
implementation of EV-DO or similar network technology in its operating markets in existence as of
the date of this Agreement) to (b) the sum (without duplication) of the following (“Fixed Charges”)
(i) Consolidated Interest Charges paid or required to be paid in cash for such period, (ii) the
aggregate principal amount of all regularly scheduled principal payments or redemptions and all
required prepayments, repurchases, redemptions or similar acquisitions for value of outstanding
debt for borrowed money, but excluding (A) any such payments to the extent refinanced through the
incurrence of additional Indebtedness otherwise expressly permitted under Section 7.02 and
(B) any of the principal payments in respect of the Term B Loans scheduled to be made during the
last year prior to the Maturity Date, (iii) rentals payable in cash during such period under leases
of real or personal, or mixed, property, to the extent not already deducted in calculating
Consolidated Net Income, (iv) income taxes paid in cash and (v) the aggregate amount of all Cash
Distributions of Holdings, in each case, other than with respect to clause (v), of or by
Holdings and its Subsidiaries (including any Qualified Designated Entities and Joint Venture
Entities that are required under GAAP to be consolidated with Holdings and its Subsidiaries but
excluding any Oregon Entity) on a consolidated basis for the most recently completed Measurement
Period.

          “Consolidated Funded Indebtedness” means, as of any date of determination, for Holdings and
its Subsidiaries (including any Qualified Designated Entities and Joint Venture Entities that are
required under GAAP to be consolidated with Holdings and its Subsidiaries) on a consolidated basis,
the sum (without duplication) of (a) the outstanding principal amount of all obligations, whether
current or long-term, for borrowed money (including Obligations hereunder) and all obligations
evidenced by bonds, debentures, notes, loan agreements or other similar instruments, (b) all
Indebtedness incurred for the purpose of purchasing, constructing or improving capital assets, (c)
all direct obligations arising under letters of credit (including standby and commercial), bankers’
acceptances, bank guaranties, surety bonds and similar instruments, (d) all obligations in respect
of the deferred purchase price of property or services (other than trade accounts payable in the
ordinary course of business), (e) Attributable Indebtedness, (f) without duplication, all
Guarantees with respect to outstanding Indebtedness of the types specified in clauses (a)
through (e) above of Persons other than Holdings or any Subsidiary (including any Qualified
Designated Entities and Joint Venture Entities that are required under GAAP to be consolidated with
Holdings and its Subsidiaries), and (g) all Indebtedness of the types referred to in clauses
(a) through (f) above of any partnership or joint venture (other than a joint venture that is
itself a corporation or limited liability company or a limited partnership in which such Person is
a limited partner) in which the Borrower or a Subsidiary is a general partner or joint venturer,
unless such Indebtedness is non-recourse to Holdings or such Subsidiary; provided that
Consolidated Funded Indebtedness shall not be

 

 

          deemed to include (x) any obligations of Holdings or any of its Subsidiaries of any type
described in Section 7.03(k), Section 7.03(l), Section 7.03(n) or
Section 7.03(o) or (y) any Indebtedness of an Oregon Entity that is non-recourse to the
Loan Parties.

          “Consolidated Interest Charges” means, for any Measurement Period, the sum (without
duplication) of (a) all interest, premium payments, debt discount, fees, charges and related
expenses in connection with borrowed money (including capitalized interest) or in connection with
the deferred purchase price of assets, in each case to the extent treated as interest in accordance
with GAAP and (b) the portion of rent expense with respect to such period under Capitalized Leases
that is treated as interest in accordance with GAAP, in each case, of or by Holdings and its
Subsidiaries (including any Qualified Designated Entities and Joint Venture Entities that are
required under GAAP to be consolidated with Holdings and its Subsidiaries) on a consolidated basis
for such period; provided, that for each of the first four Measurement Periods ending after
the Closing Date, (x) for each fiscal quarter in such Measurement Period ending prior to the
Closing Date, Consolidated Interest Charges of the type referred to in clause (a) above
shall be calculated on a pro forma basis as though the Closing Date had occurred at the beginning
of such Measurement Period, assuming that the Loans borrowed as of the Closing Date were Eurodollar
Rate Loans and assuming that the LIBO Rate applicable thereto is equal to a rate designated by the
Administrative Agent to the Borrower as of the Closing Date and (y) for each fiscal quarter in such
Measurement Period ending after the Closing Date, Consolidated Interest Charges of the type
referred to in clause (a) above shall be the actual Consolidated Interest Charges of such
type for such fiscal quarter; and provided, further that Consolidated Interest Charges
shall not be deemed to include any interest, premium payments, debt discount, fees, charges or
related expenses relating to Indebtedness of an Oregon Entity that is non-recourse to the Loan
Parties.

          “Consolidated Interest Coverage Ratio” means, as of any date of determination, the ratio of
(a) Consolidated EBITDA to (b) Consolidated Interest Charges paid in cash, in each case, of or by
Holdings and its Subsidiaries (including any Qualified Designated Entities and Joint Venture
Entities that are required under GAAP to be consolidated with Holdings and its Subsidiaries) for
the most recently completed Measurement Period.

          “Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a)
Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA of Holdings and its
Subsidiaries (including any Qualified Designated Entities and Joint Venture Entities that are
required under GAAP to be consolidated with Holdings and its Subsidiaries) for the most recently
completed Measurement Period.

          “Consolidated Net Income” means, at any date of determination, the net income of Holdings and
its Subsidiaries (including any Qualified Designated Entities and Joint Venture Entities that are
required under GAAP to be consolidated with Holdings and its Subsidiaries, but excluding any Oregon
Entity) (without giving effect to extraordinary gains or extraordinary losses) on a consolidated
basis for the most recently completed Measurement Period.

          “Consolidated Senior Secured Leverage Ratio” means, as of any date of determination, the ratio
of (a) senior secured Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA
of Holdings and its Subsidiaries (including any Qualified

 

 

Designated Entities and Joint Venture Entities that are required under GAAP to be consolidated
with Holdings and its Subsidiaries) for the most recently completed Measurement Period.

          “Contractual Obligation” means, as to any Person, any provision of any security issued by such
Person or of any agreement, instrument or other undertaking to which such Person is a party or by
which it or any of its property is bound.

          “Control” means the possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the ability to exercise voting
power, by contract or otherwise. “Controlling” and “Controlled” have meanings correlative thereto.

          “Controlled Joint Venture Entity” means a Joint Venture Entity as to which Holdings or any of
its Subsidiaries owns Equity Interests having ordinary voting power for the election of a majority
of the directors, managers or other governing body (other than securities or interests having such
power only by reason of the happening of a contingency).

          “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

          “Current Assets” means, with respect to any Person, all assets of such Person that, in
accordance with GAAP, would be classified as current assets on the balance sheet of a company
conducting a business the same as or similar to that of such Person, after deducting appropriate
and adequate reserves therefrom in each case in which a reserve is proper in accordance with GAAP.

          “Current Liabilities” means, with respect to any Person, all items that, in accordance with
GAAP, would be classified as current liabilities on the balance sheet of a company conducting a
business the same as or similar to that of such Person.

          “Debtor Relief Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

          “Default” means any event or condition that constitutes an Event of Default or that, with the
giving of any notice, the passage of time, or both, would be an Event of Default.

          “Default Rate” means (a) when used with respect to Obligations other than Letter of Credit
Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Rate, if any,
applicable to Base Rate Loans plus (iii) 2.0% per annum; provided, however,
that with respect to a Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to
the interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 2.0% per
annum and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable Rate
plus 2.0% per annum.

 

 

          “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the Term B
Loans, Revolving Credit Loans or participations in L/C Obligations required to be funded by it
hereunder within one Business Day of the date required to be funded by it hereunder, (b) has
otherwise failed to pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute, or (c) has been deemed insolvent or become the subject of a
bankruptcy or insolvency proceeding.

          “Disclosed Litigation” has the meaning set forth in Section 5.06.

          “Disposition” or “Dispose” means the sale, transfer, license, lease or other disposition
(including any sale and leaseback transaction) of any property by any Person (or the granting of
any option or other right to do any of the foregoing), including any sale, assignment, transfer or
other disposal, with or without recourse, of any notes or accounts receivable or any rights and
claims associated therewith.

          “Disqualified Subsidiary” means, at any time, a Subsidiary that was formerly a Qualified
Designated Entity or Joint Venture Entity and that at such time has outstanding Indebtedness of the
type referred to in Section 7.02(a)(ii)(F) (unless such Indebtedness is otherwise permitted
pursuant to one or more other clauses of Section 7.02(a)(ii)), until such time as such
Subsidiary has complied with the requirements of Section 6.12(a).

          “Documentation Agent” means GSCP in its capacity as documentation agent under any of the Loan
Documents.

          “Dollar” and “$” mean lawful money of the United States.

          “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any political
subdivision of the United States.

          “Eligible Assignee” means any Person that meets the requirements to be an assignee under
Section 10.06(b)(iii), (v) and (vi) (subject to such consents, if any, as
may be required under Section 10.06(b)(iii)).

          “Environmental Action” means any claim, action, suit, arbitration, inquiry, proceeding,
investigation, demand, demand letter, lien, notice of non-compliance or violation, notice of
liability or potential liability, consent order or consent agreement, by or with any Person,
relating to any Environmental Law, Environmental Permit or Hazardous Material.

          “Environmental Laws” means any and all Federal, state, local, and foreign statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants or binding
agreements, in each case issued, promulgated or entered into by a Governmental Authority, relating
to pollution and the protection of the environment or the release of any materials into the
environment, including those related to Hazardous Materials or wastes, air emissions and discharges
to waste or public systems.

          “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of

 

 

the Borrower, any other Loan Party or any of their respective Subsidiaries directly or
indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation,
use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c)
exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous
Materials into the environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the foregoing.

          “Environmental Permit” means any permit, approval, identification number, license or other
authorization required under any Environmental Law.

          “Equity Interests” means, with respect to any Person, any of the shares of capital stock of
(or other ownership or profit interests in) such Person, any of the warrants, options or other
rights for the purchase or acquisition from such Person of shares of capital stock of (or other
ownership or profit interests in) such Person, any of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person
or warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests), and any of the other ownership or profit interests in such Person
(including, without limitation, partnership, member or trust interests therein), whether voting or
nonvoting, and whether or not such shares, warrants, options, rights or other interests are
outstanding on any date of determination.

          “ERISA” means the Employee Retirement Income Security Act of 1974 and the regulations
promulgated and the rulings issued thereunder.

          “ERISA Affiliate” means any trade or business (whether or not incorporated) under common
control with the Borrower within the meaning of Section 414(b) or (c) of the Code (and Sections
414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).

          “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by
the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of ERISA during a
plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a
cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a
complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan
under Section 4203 or 4205 of ERISA or notification that a Multiemployer Plan is in reorganization
under Section 4241; (d) the filing of a notice of intent to terminate, the treatment of a Pension
Plan amendment as a termination under Sections 4041 or 4041A of ERISA, or the commencement of
proceedings by the PBGC to terminate a Pension Plan; (e) an event or condition which constitutes
grounds under Section 4042 of ERISA for the termination of, or the appointment of a trustee to
administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under
Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA,
upon the Borrower or any ERISA Affiliate.

          “Eurodollar Rate” means for any Interest Period with respect to any Eurodollar Rate Loan, a
rate per annum determined by the Administrative Agent pursuant to the following formula:

 

 

	 	 	 	 	 	 	 
	 

	 	Eurodollar Rate
	 	=
	 	LIBO Rate
	 

	 	 	 	 	 	 
	 

	 	 	 	 	 	1.00 – Eurodollar Reserve Percentage

          Where,

          “LIBO Rate” means, for such Interest Period:

     (a) the rate per annum equal to the rate determined by the Administrative Agent to be
the offered rate that appears on the page of the Telerate screen (or any successor thereto)
that displays an average British Bankers Association Interest Settlement Rate for deposits
in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to
such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period, or

     (b) if the rate referenced in the preceding clause (a) does not appear on such
page or service or such page or service shall not be available, the rate per annum equal to
the rate determined by the Administrative Agent to be the offered rate on such other page or
other service that displays an average British Bankers Association Interest Settlement Rate
for deposits in Dollars (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time)
two Business Days prior to the first day of such Interest Period, or

     (c) if the rates referenced in the preceding clauses (a) and (b) are
not available, the rate per annum determined by the Administrative Agent as the rate of
interest at which deposits in Dollars for delivery on the first day of such Interest Period
in same day funds in the approximate amount of the Eurodollar Rate Loan being made,
continued or converted by Bank of America and with a term equivalent to such Interest Period
would be offered by Bank of America’s London Branch to major banks in the London interbank
eurodollar market at their request at approximately 4:00 p.m. (London time) two Business
Days prior to the first day of such Interest Period.

          “Eurodollar Rate Loan” means a Revolving Credit Loan or a Term B Loan that bears interest at a
rate based on the Eurodollar Rate.

          “Eurodollar Reserve Percentage” means, for any day during any Interest Period, the reserve
percentage (expressed as a decimal, carried out to five decimal places) in effect on such day,
whether or not applicable to any Lender, under regulations issued from time to time by the FRB for
determining the maximum reserve requirement (including any emergency, supplemental or other
marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as
“Eurocurrency liabilities”). The Eurodollar Rate for each outstanding Eurodollar Rate Loan shall
be adjusted automatically as of the effective date of any change in the Eurodollar Reserve
Percentage.

          “EV-DO” means one or more versions or revisions or releases of Evolution — Data Only (EvDO)
technology.

          “Event of Default” has the meaning specified in Section 8.01.

 

 

          “Excess Cash Flow” means, for any period, the sum (without duplication) of (a) Consolidated
Net Income for such period, plus (b) an amount equal to the aggregate amount of all noncash
charges (including depreciation and amortization) deducted in determining the Consolidated Net
Income for such period, plus (c) an amount (whether positive or negative) equal to the
change in consolidated Current Liabilities of Holdings and its Subsidiaries (including any
Qualified Designated Entities and Joint Venture Entities that are required under GAAP to be
consolidated with Holdings and its Subsidiaries) during such period, less (d) an amount
equal to the aggregate amount of all noncash income, gains or credits included in determining the
Consolidated Net Income for such period, less (e) an amount (whether positive or negative)
equal to the change in consolidated Current Assets (excluding cash and Cash Equivalents) of
Holdings and its Subsidiaries (including any Qualified Designated Entities and Joint Venture
Entities that are required under GAAP to be consolidated with Holdings and its Subsidiaries) during
such period, less (f) an amount equal to the aggregate amount of all Capital Expenditures
by Holdings and its Subsidiaries (including any Qualified Designated Entities and Joint Venture
Entities that are required under GAAP to be consolidated with Holdings and its Subsidiaries) during
such period, less (g) an amount equal to the aggregate amount of all Required Principal
Payments made by Holdings and its Subsidiaries (including any Qualified Designated Entities and
Joint Venture Entities that are required under GAAP to be consolidated with Holdings and its
Subsidiaries) during such period, and the aggregate principal amount of all optional prepayments
made pursuant to Section 2.04(a) during such period (to the extent that each such optional
prepayment in respect of the Revolving Credit Facility resulted in a corresponding permanent
commitment reduction of the Revolving Credit Facility pursuant to Section 2.05 at the time
of such prepayment), less (h) the aggregate amount of all mandatory prepayments made
pursuant to Section 2.04(b)(ii) during such period with Net Cash Proceeds to the extent
that such Net Cash Proceeds are included in determining Consolidated Net Income for such period,
less (i) an amount equal to the aggregate amount of all Cash Distributions paid by Holdings
during such period less (j) an amount equal to the aggregate amount of cash expenditures on
Investments pursuant to Sections 7.03(k), 7.03(l), 7.03(n) and
7.03(o) and on FCC Licenses.

          “Excluded Assumed Liabilities” means Guarantees or assumptions of ordinary course liabilities
that (i) do not constitute Indebtedness (except insofar as such Indebtedness is a trade account
past due for more than 180 days after the date on which the invoice in respect of such trade
payable was received), (ii) are associated with any assets transferred between any Joint Venture
Entity, Qualified Designated Entity or Disqualified Subsidiary and Holdings or any of its
Subsidiaries and (iii) do not increase the total liabilities reflected in the most recent
consolidated balance sheet of Holdings and its Subsidiaries delivered pursuant to Section
6.01(b) by more than $5,000,000.

          “Excluded Subsidiaries” means, collectively, Orrengrove Investments Limited and Leap Wireless
Mexico S.A. de C.V., each a Subsidiary of Holdings.

          “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the L/C Issuer
or any other recipient of any payment to be made by or on account of any obligation of the Borrower
hereunder, (a) taxes including interest, penalties and additions to tax imposed on or measured by
its overall net income or net profits (however denominated), and franchise taxes imposed on it (in
lieu of net income taxes), by the jurisdiction (or any political

 

 

subdivision thereof) under the laws of which such recipient is organized or in which its
principal office is located or, in the case of any Lender, in which its applicable Lending Office
is located or any jurisdiction in which such recipient is otherwise engaged in a trade or business
as a result of transactions unrelated to the Loan Documents (except to the extent such tax is
imposed because of a connection between the Borrower, its agent or any affiliate and the
jurisdiction imposing such a tax), (b) any branch profits taxes imposed by the United States or any
similar tax imposed by any other jurisdiction in which the Borrower is located and (c) in the case
of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under Section
10.13), any withholding tax that is imposed on amounts payable to such Foreign Lender at the
time such Foreign Lender becomes a party hereto (or designates a new Lending Office), except to the
extent that such Foreign Lender (or its assignor, if any) was entitled, at the time of designation
of a new Lending Office (or assignment), to receive additional amounts from the Borrower with
respect to such withholding tax pursuant to Section 3.01(a) or is attributable to such
Foreign Lender’s failure or inability (other than as a result of a Change in Law) to comply with
Section 3.01(e).

          “Existing Letters of Credit” means the letters of credit listed on Schedule II.

          “Extraordinary Receipt” means any cash received by or paid to or for the account of any Person
not in the ordinary course of business, including tax refunds, pension plan reversions, proceeds of
insurance (other than proceeds of business interruption insurance to the extent such proceeds
constitute compensation for lost earnings), condemnation awards (and payments in lieu thereof),
indemnity payments and any purchase price adjustments; provided, however, that an
Extraordinary Receipt shall not include cash receipts received from proceeds of insurance,
condemnation awards (or payments in lieu thereof) or indemnity payments to the extent that such
proceeds, awards or payments (a) in respect of loss or damage to equipment, fixed assets or real
property are applied (or in respect of which expenditures were previously incurred) to replace or
repair the equipment, fixed assets or real property in respect of which such proceeds were received
in accordance with the terms of Section 2.04(b)(ii) or (b) are received by any Person in
respect of any third party claim against such Person and applied to pay (or to reimburse such
Person for its prior payment of) such claim and the costs and expenses of such Person with respect
thereto.

          “Facility” means the Term B Facility, the Revolving Credit Facility or the Letter of Credit
Sublimit, as the context may require.

          “FCC” has the meaning specified in the introductory paragraphs hereto.

          “FCC Licenses” means broadband personal communications service licenses, advanced wireless
services licenses or other licenses for the provision of wireless telecommunications services or
operation of wireless telecommunications systems issued by the FCC from time to time.

          “FCC Rules” means rules, regulations, orders and public notices of the FCC (including, without
limitation, the provisions of 47 C.F.R. Section 1.2109).

 

 

          “Federal Funds Rate” means, for any day, the rate per annum equal to the weighted average of
the rates on overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day; provided that (a) if such day is not a
Business Day, the Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such
rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day
shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by the Administrative
Agent.

          “Fee
Letters” means, collectively, (a) the letter
agreement, dated May 10, 2006, among
Holdings, the Borrower, Bank of America and BAS and (b) the
letter agreement dated May 10, 2006
among Holdings, the Borrower and GSCP.

          “Fixed Charges” has the meaning specified in the definition of “Consolidated Fixed Charge
Coverage Ratio”.

          “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other
than that in which the Borrower is resident for tax purposes. For purposes of this definition, the
United States, each State thereof and the District of Columbia shall be deemed to constitute a
single jurisdiction.

          “Formation Agreement” means the Formation Agreement dated as of May 10, 2006 between the
Borrower and Denali Spectrum Manager, LLC, as amended from time to time in accordance with
Section 7.12.

          “FRB” means the Board of Governors of the Federal Reserve System of the United States, or any
successor thereto.

          “Fund” means any Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in
the ordinary course.

          “GAAP” means generally accepted accounting principles in the United States set forth in the
opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

          “Governmental Authority” means the government of the United States or any other nation, or of
any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

 

 

          “Granting
Lender” has the meaning specified in Section 10.06(i).

          “GSCP” means Goldman Sachs Credit Partners L.P.

          “Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of such
Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness or other
obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in
respect of such Indebtedness or other obligation of the payment or performance thereof or to
protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien on any
assets of such Person securing any Indebtedness or other obligation of any other Person, whether or
not such Indebtedness or other obligation is assumed by such Person (or any right, contingent or
otherwise, of any holder of such Indebtedness to obtain any such Lien). The amount of any
Guarantee within the meaning of clause (a) of this definition shall be deemed to be an
amount equal to the stated or determinable amount of the related primary obligation, or portion
thereof, in respect of which such Guarantee is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in
good faith. The amount of any Guarantee within the meaning of clause (b) of this
definition shall be deemed to be an amount equal to the lesser of (x) the amount of the
Indebtedness or other obligation secured by such Lien and (y) the value of the assets subject to
such Lien. The term “Guarantee” as a verb has a corresponding meaning.

          “Guarantors” means, collectively, Holdings, the Subsidiaries of the Borrower listed on
Schedule I and each other Subsidiary of Holdings that shall be required to execute and
deliver a guaranty or guaranty supplement pursuant to Section 6.12.

          “Guaranty” means, collectively, (a) the Amended and Restated Parent Guaranty made by Holdings
in favor of the Secured Parties, in substantially the form of Exhibit E-1, and (b) the
Amended and Restated Subsidiary Guaranty made by the Guarantors (other than Holdings) in favor of
the Secured Parties, substantially in the form of Exhibit E-2 (the “Subsidiary Guaranty”),
together with each other guaranty and guaranty supplement delivered pursuant to Section
6.12.

          “Hazardous Materials” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum or petroleum
distillates, asbestos or asbestos-containing materials, polychlorinated biphenyls, radon gas,
infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to
any Environmental Law.

 

 

          “Hedge Bank” means any Person that is a Lender or an Affiliate of a Lender, in its
capacity as a party to a Secured Hedge Agreement.

          “Holdings” has the meaning specified in the introductory paragraphs hereto.

          “Increase
Effective Date” has the meaning specified in Section
2.13(d).

          “Incremental Facility” has the meaning specified in Section 2.13(d).

          “Incur” has the meaning specified in Section 7.02(a).

          “Incurrence Test” has the meaning specified in Section 7.02(a).

          “Indebtedness” means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) the maximum amount of all direct or contingent obligations of such Person arising
under letters of credit (including standby and commercial), bankers’ acceptances, bank
guaranties, surety bonds and similar instruments;

     (c) net obligations of such Person under any Swap Contract, other than a Permitted
Equity Forward;

     (d) all obligations of such Person to pay the deferred purchase price of property or
services (other than trade accounts payable in the ordinary course of business and not past
due for more than 180 days after the date on which the invoice in respect of such trade
payable was received);

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements), whether or not such indebtedness shall have been
assumed by such Person or is limited in recourse (provided, that if recourse to such
Person for such indebtedness is limited to the property or assets subject to such Lien, then
such indebtedness shall constitute Indebtedness of such Person solely to the extent of the
lower of (i) the amount of the indebtedness secured by such Lien and (ii) the value of the
property and assets subject to such Lien);

     (f) all Attributable Indebtedness;

     (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of (i) any Equity Interest in such Person or any other Person or
(ii) any warrant, right or option to acquire such Equity Interest, excluding in each case
any such obligations to the extent that such obligations by their terms permit satisfaction
in full in common Equity Interests or Qualified Preferred Stock (or any combination thereof)
of Holdings (including Permitted Equity Forwards), valued, in the case of a

 

 

redeemable preferred interest, at the greater of its voluntary or involuntary
liquidation preference plus accrued and unpaid dividends; and

     (h) all Guarantees of such Person in respect of any of the foregoing, other than
Permitted Debt Put Rights.

          For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation, limited
liability company or limited partnership in which such Person is a limited partner) in which such
Person is a general partner or a joint venturer, unless such Indebtedness is non-recourse to such
Person. The amount of any net obligation under any Swap Contract on any date shall be deemed to be
the Swap Termination Value thereof as of such date. From and after the occurrence of the discharge
of the indenture under which the Existing Notes were issued, the principal amount of the Existing
Notes and the accrued interest in respect thereof shall not constitute “Indebtedness” hereunder.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Indemnitees” has the meaning specified in Section 10.04(b).

          “Information Memorandum” means the information memorandum dated May 2006 used by the Joint
Lead Arrangers in connection with the syndication of the Commitments, as supplemented or updated
prior to the date hereof by or with the consent of the Joint Lead Arrangers.

          “Intellectual Property Security Agreement” has the meaning specified in Section
4.01(a)(iv).

          “Interest Payment Date” means, (a) as to any Eurodollar Rate Loan, the last day of each
Interest Period applicable to such Loan and the Maturity Date of the Facility under which such Loan
was made; provided, however, that if any Interest Period for a Eurodollar Rate Loan
exceeds three months, the respective dates that fall every three months after the beginning of such
Interest Period shall also be Interest Payment Dates; and (b) as to any Base Rate Loan, the last
Business Day of each March, June, September and December and the Maturity Date of the Facility
under which such Loan was made.

          “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the date
such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and
ending on the date one, two, three or six months thereafter, as selected by the Borrower in its
Committed Loan Notice; provided that:

     (i) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding
Business Day;

     (ii) any Interest Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar

 

 

month at the end of such Interest Period) shall end on the last Business Day of the
calendar month at the end of such Interest Period; and

     (iii) no Interest Period shall extend beyond the Maturity Date of the Facility under
which such Loan was made.

          “Investment” means, as to any Person, any direct or indirect acquisition or investment by such
Person, whether by means of (a) the purchase or other acquisition of Equity Interests of another
Person, (b) a loan, advance or capital contribution to, or purchase or other acquisition of any
other debt or equity participation or interest in, another Person and any and all Guarantees of a
Qualified Designated Entity, a Joint Venture Entity or a Disqualified Subsidiary or assumptions of
debt of a Qualified Designated Entity, a Joint Venture Entity or a Disqualified Subsidiary,
including without limitation a Permitted Guarantee, or (c) the purchase or other acquisition (in
one transaction or a series of transactions) of assets of another Person that constitute a business
unit or all or a substantial part of the business of, such Person. For purposes of covenant
compliance, the amount of any Investment shall be the amount actually invested, without adjustment
for subsequent increases or decreases in the value of such Investment.

          “IP Rights” has the meaning specified in Section 5.17.

          “IP Security Agreement Supplement” has the meaning specified in Section 14(f) of the
Security Agreement.

          “IRS” means the United States Internal Revenue Service.

          “ISDA Master Agreement” means the Master Agreement (Multicurrency-Cross Border) published by
the International Swap and Derivatives Association, Inc., as in effect from time to time.

          “ISP” means, with respect to any Letter of Credit, the “International Standby Practices 1998”
published by the Institute of International Banking Law & Practice (or such later version thereof
as may be in effect at the time of issuance).

          “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the L/C Issuer and
the Borrower (or any Subsidiary) or in favor of the L/C Issuer and relating to any such Letter of
Credit.

          “Joint Book Managers” means, collectively, BAS and GSCP in their capacities as Joint Book
Managers for the Facilities.

          “Joint Lead Arrangers” means, collectively, BAS and GSCP in their capacities as Joint Lead
Arrangers for the Facilities.

          “Joint Venture Entity” means (i) a corporation, partnership, joint venture, limited liability
company or other business entity in which Holdings or any of its Subsidiaries makes any Investment
as permitted by Section 7.03(k) or 7.03(o), of which more than zero percent but less than 100% of the
shares of securities or other ownership interests having ordinary voting power for the

 

 

election of directors, managers or other governing body (other than securities or interests
having such power only by reason of the happening of a contingency) are owned by Holdings or any of
its Subsidiaries or (ii) any wholly-owned Subsidiary of any corporation, partnership, joint
venture, limited liability company or other business entity referred to in clause (i) above;
provided, however, that any entity that was a Subsidiary of the Borrower on July
22, 2005 shall not be included in the term “Joint Venture Entity.”

          “Laws” means, collectively, all international, foreign, Federal, state and local statutes,
treaties, rules, regulations, ordinances, codes and administrative or judicial precedents or
authorities, including the interpretation or administration thereof by any Governmental Authority
charged with the enforcement, interpretation or administration thereof, and all applicable
administrative orders, licenses, authorizations and permits of, any Governmental Authority, in each
case having the force of law.

          “L/C Advance” means, with respect to each Revolving Credit Lender, such Lender’s funding of
its participation in any L/C Borrowing in accordance with its Applicable Percentage.

          “L/C Borrowing” means an extension of credit resulting from a drawing under any Letter of
Credit which has not been reimbursed on the date when made or refinanced as a Revolving Credit
Borrowing.

          “L/C Credit Extension” means, with respect to any Letter of Credit, the issuance thereof, the
extension of the expiry date thereof, or the increase of the amount thereof.

          “L/C Issuer” means Bank of America or another Lender acceptable to the Administrative Agent
and the Borrower, in each case in its capacity as issuer of Letters of Credit hereunder, or any
successor issuer of Letters of Credit hereunder.

          “L/C Obligations” means, as at any date of determination, the aggregate amount available to be
drawn under all outstanding Letters of Credit plus the aggregate of all Unreimbursed
Amounts, including all L/C Borrowings. For purposes of computing the amount available to be drawn
under any Letter of Credit, the amount of such Letter of Credit shall be determined in accordance
with Section 1.06. For all purposes of this Agreement, if on any date of determination a
Letter of Credit has expired by its terms but any amount may still be drawn thereunder by reason of
the operation of Rule 3.14 of the ISP, such Letter of Credit shall be deemed to be “outstanding” in
the amount so remaining available to be drawn.

          “Lender” has the meaning specified in the introductory paragraph hereto.

          “Lending Office” means, as to any Lender, the office or offices of such Lender described as
such in such Lender’s Administrative Questionnaire, or such other office or offices as a Lender may
from time to time notify the Borrower and the Administrative Agent.

          “Letter of Credit” means any standby letter of credit issued hereunder and any of the Existing
Letters of Credit listed in Part I of Schedule II.

 

 

          “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the form from time to time in use by the L/C Issuer.

          “Letter of Credit Expiration Date” means the day that is seven days prior to the Maturity Date
then in effect for the Revolving Credit Facility (or, if such day is not a Business Day, the next
preceding Business Day).

          “Letter of Credit Fee” has the meaning specified in Section 2.03(i).

          “Letter of Credit Sublimit” means an amount equal to $15,000,000. The Letter of Credit
Sublimit is part of, and not in addition to, the Revolving Credit Facility.

          “LIBO Rate” has the meaning set forth in the definition of Eurodollar Rate.

          “Lien” means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or other security interest
or preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any easement, right of way or
other encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

          “Loan” means an extension of credit by a Lender to the Borrower under Article II in
the form of a Term B Loan or a Revolving Credit Loan.

          “Loan Documents” means, collectively, (a) for purposes of this Agreement and the Notes and any
amendment, supplement or other modification hereof or thereof and for all other purposes other than
for purposes of the Guaranty and the Collateral Documents, (i) this Agreement, (ii) the Notes,
(iii) the Guaranty, (iv) the Collateral Documents, (v) the Fee Letters and (vi) each Issuer
Document and (b) for purposes of the Guaranty and the Collateral Documents, (i) this Agreement,
(ii) the Notes, (iii) the Guaranty, (iv) the Collateral Documents, (v) each Issuer Document, (vi)
the Fee Letters and (vii) each Secured Hedge Agreement.

          “Loan Parties” means, collectively, the Borrower and each Guarantor.

          “Material Adverse Effect” means a material adverse effect upon (a) the operations, business,
properties, liabilities (actual or contingent), condition (financial or otherwise) or prospects of
Holdings and its Subsidiaries, taken as a whole; (b) the rights and remedies of the Administrative
Agent or the Lenders under the Loan Documents; (c) the ability of the Loan Parties, taken as a
whole, to perform their obligations under the Loan Documents; or (d) a material adverse effect upon
the legality, validity, binding effect or enforceability against any Loan Party of any Loan
Document to which it is a party.

          “Material Contract” means, with respect to any Person, each contract to which such Person is a
party for which breach could reasonably be expected to have a Material Adverse Effect.

 

 

          “Maturity Date” means (a) with respect to the Revolving Credit Facility, June 16, 2011 and (b)
with respect to the Term B Facility, June 16, 2013.

          “Maximum Incurrence Ratio” means, as of any date occurring during a period set forth below,
the ratio set forth opposite such period:

	 	 	 	 	 
	Four Quarters Ending	 	Maximum Incurrence Ratio
	Closing Date through March 31, 2007
	 	 	7.00:1.00	 
	April 1, 2007 through September 30, 2007
	 	 	6.50:1.00	 
	October 1, 2007 through March 31, 2008
	 	 	6.00:1.00	 
	April 1, 2008 and thereafter
	 	 	5.50:1.00	 

          “Maximum Rate” has the meaning specified in Section 10.09.

          “Measurement Period” means, at any date of determination, the most recently completed four
consecutive fiscal quarters of Holdings ending on or prior to such date.

          “Moody’s” means Moody’s Investors Service, Inc. and any successor thereto.

          “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

          “Net Cash Proceeds” means:

     (a) with respect to any Disposition by any Loan Party or any of its Subsidiaries (other
than a Disqualified Subsidiary), or any Extraordinary Receipt received or paid to the
account of any Loan Party or any of its Subsidiaries (other than a Disqualified Subsidiary),
the excess, if any, of (i) the sum of cash and Cash Equivalents received in connection with
such transaction (including any cash or Cash Equivalents received by way of deferred payment
pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so
received) over (ii) the sum of (A) the principal amount of any Indebtedness that is secured
by the applicable asset and that is required to be repaid in connection with such
transaction (other than Indebtedness under the Loan Documents), together with any premium or
penalty and interest payable with respect thereto, (B) the reasonable and customary
out-of-pocket fees and expenses incurred by such Loan Party or such Subsidiary in connection
with such transaction (including without limitation legal, accounting, title and transfer
and recording tax expenses, commissions, and any expenses incurred in preparing the relevant
property for sale), (C) income taxes paid or reasonably estimated to be actually payable
within two years of the date of the receipt of such proceeds as a result of any gain
recognized in connection therewith and (D) the aggregate amount of reserves taken by
Holdings or any of its

 

 

Subsidiaries in accordance with GAAP against indemnification obligations incurred in
connection with such Disposition; and

     (b) with respect to the incurrence or issuance of any Indebtedness by Holdings or any
of its Subsidiaries (other than a Disqualified Subsidiary), in each case other than to a
Loan Party the excess of (i) the sum of the cash and Cash Equivalents received in connection
with such transaction over (ii) the underwriting discounts and commissions, and other
reasonable and customary out-of-pocket fees and expenses, incurred by Holdings or such
Subsidiary (other than a Disqualified Subsidiary) in connection therewith.

          “Non-Financial Entity” has the meaning specified in Section 10.06(a).

          “Note” means a Term B Note or a Revolving Credit Note, as the context may require.

          “Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties
of, any Loan Party arising under any Loan Document or otherwise with respect to any Loan or Letter
of Credit, whether direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and including interest and fees
that accrue under the terms of the Loan Documents after the commencement by or against any Loan
Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as
the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in
such proceeding. Without limiting the generality of the foregoing, the Obligations of the Loan
Parties under the Loan Documents include (a) the obligation to pay principal, interest, Letter of
Credit commissions, charges, expenses, fees, attorneys’ fees and disbursements, indemnities and
other amounts payable by any Loan Party under any Loan Document and (b) the obligation of any Loan
Party to reimburse any amount in respect of any of the foregoing that any Lender, in its sole
discretion, may elect to pay or advance on behalf of such Loan Party.

          “Oregon Entity” means (i) any Qualified Designated Entity or Joint Venture Entity in which
Holdings or any of its Subsidiaries makes an Investment and that holds (either itself or through
one or more Subsidiaries) any wireless license for, or operates (either itself or through one or
more Subsidiaries) a wireless telecommunications business in, one or more markets in the State of
Oregon which in any event shall include the Portland, Oregon market or (ii) any wholly-owned
Subsidiary of a Person referred to in clause (i) above that is engaged in any business or activity
referred to in clause (i) above.

          “Organization Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws (or equivalent or comparable constitutive documents with
respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or organization with
the applicable Governmental Authority in the jurisdiction of its formation or

 

 

organization and, if applicable, any certificate or articles of formation or organization of
such entity.

          “Other Taxes” means all present or future stamp or documentary taxes or any other excise or
property taxes, charges or similar levies arising from any payment made hereunder or under any
other Loan Document or from the execution, delivery or enforcement of, or otherwise with respect
to, this Agreement or any other Loan Document.

          “Outstanding Amount” means (i) with respect to Term B Loans and Revolving Credit Loans on any
date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and
prepayments or repayments of Term B Loans and Revolving Credit Loans, as the case may be, occurring
on such date; and (ii) with respect to any L/C Obligations on any date, the amount of such L/C
Obligations on such date after giving effect to any L/C Credit Extension occurring on such date and
any other changes in the aggregate amount of the L/C Obligations as of such date, including as a
result of any reimbursements by the Borrower of Unreimbursed Amounts.

          “Participant” has the meaning specified in Section 10.06(d).

          “PBGC” means the Pension Benefit Guaranty Corporation.

          “Pension Plan” means any “employee pension benefit plan” (as such term is defined in Section
3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is
sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five plan years.

          “Permitted ANB Unsecured Investment” means any of:

     (a) any Disposition permitted under any of Sections 7.05(n), 7.05(o),
7.05(p) and 7.05(q) that constitutes an Investment, to the extent that the
aggregate amount of all such Investments does not exceed $10,000,000 outstanding at any
time,

     (b) any Investment of the type permitted by clause (y) of Section 7.03(l),

     (c) any Investment of the type permitted by clause (z) of Section 7.03(l),

     (d) any Permitted Guarantee with respect to obligations of ANB 1 or ANB 1 License, and

     (e) one or more Investments in ANB 1 or ANB 1 License that in the aggregate do not
exceed $13,500,000 at any time.

          “Permitted Bridge Debt” means (a) Indebtedness that meets the criteria of Permitted Unsecured
Debt, except that such Indebtedness may provide for an initial maturity of one year so long as such
Indebtedness by its terms rolls into a maturity that satisfies clause (a) of the definition of
Permitted Unsecured Debt on the one-year anniversary of the initial borrowing

 

 

thereunder and the only conditions to such rollover are the absence of any payment default and
the absence of any bankruptcy default or (b) other unsecured Indebtedness on terms approved by the
Administrative Agent.

          “Permitted Debt Put Rights” means obligations to purchase, make any payment in respect of, or
otherwise satisfy Indebtedness of a Qualified Designated Entity or a Joint Venture Entity to a
third party to the extent that such obligations are by their terms capable of being satisfied in
full with common Equity Interests of Holdings or Qualified Preferred Stock (or any combination
thereof) (and such third party has acknowledged that it has no other recourse to Holdings and its
Subsidiaries in respect of such obligations).

          “Permitted Equity Forward” means a forward sale by Holdings of its common stock so long as the
terms of such transaction permit settlement thereof in full in common stock of Holdings (or any
successor) or any securities of a successor received in consideration for common stock of Holdings,
and at the time Holdings enters into such transaction, no Default has occurred and is continuing or
would result therefrom.

          “Permitted Guarantees” means (a) one or more Guarantees or assumptions of Indebtedness or
other liabilities or obligations of Joint Venture Entities, Qualified Designated Entities or
Disqualified Subsidiaries (including ANB Entities) that are otherwise permitted under Section
7.03(k), Section 7.03(l), Section 7.03(n) or Section 7.03(o), in an
aggregate amount not in excess of $40,000,000 at any time, (b) Excluded Assumed Liabilities, (c)
Permitted Debt Put Rights and (d) Permitted Make-Whole Obligations.

          “Permitted Make-Whole Obligations” means liabilities or obligations of a Loan Party (x) to pay
bid withdrawal penalties, license default penalties or unjust enrichment payments to the FCC on
behalf of a Qualified Designated Entity or any of its Subsidiaries in the event of a failure by a
Loan Party to fund its required equity contributions to such Qualified Designated Entity or to make
required loans to such Qualified Designated Entity or its Subsidiaries which causes such Qualified
Designated Entity or any of its Subsidiaries to be or become in default under FCC Rules and thereby
to lose licenses as to which such Qualified Designated Entity or any of its Subsidiaries was the
winning bidder or (y) to co-investors in a Qualified Designated Entity to make such co-investor
whole for the return of its capital contribution plus the agreed fixed return over the period
elapsed or liquidated damages, in the event of any of (i) a failure by a Loan Party to fund its
required equity contributions to such Qualified Designated Entity or to make required loans to such
Qualified Designated Entity or its Subsidiaries which causes such Qualified Designated Entity or
any of its Subsidiaries to be or become in default under FCC Rules and thereby to lose licenses as
to which such Qualified Designated Entity or any of its Subsidiaries was the winning bidder, (ii) a
cancellation of the relevant FCC auction or if the results of the auction are dismissed due to a
failure to meet the FCC’s aggregate reserve price applicable to such auction, (iii) a failure by
such Qualified Designated Entity or its Subsidiaries to timely submit all applications for licenses
for which it was the winning bidder as a result of action or inaction by a Loan Party, (iv) a
dismissal by the FCC of such Qualified Designated Entity’s or its Subsidiary’s applications for
licenses for which it was the winning bidder, (v) a cancellation of the FCC Licenses for which such
Qualified Designated Entity or its Subsidiaries was the winning bidder and which were granted to,
and were still held by, such Qualified Designated Entity or its Subsidiaries, or (vi) such
Qualified

 

 

Designated Entity’s or its Subsidiaries’ not bidding in the relevant FCC auction or not
becoming a winning bidder therein; provided, that the aggregate Permitted Make-Whole
Obligations described in clause (y) above shall in no event exceed $200,000,000 at any
time.

          “Permitted QDE Equity Investments” means Investments in Qualified Designated Entities pursuant
to Section 7.03(n) that take the form of equity, so long as at the time of such Investment
the QDE Credit Documents with respect to such Qualified Designated Entity and its Subsidiaries have
been executed and delivered and certified copies thereof provided to the Administrative Agent;
provided that the aggregate cumulative amount of all Permitted QDE Equity Investments from
and after the Closing Date shall not exceed $130,000,000.

          “Permitted QDE Unsecured Investment” means any of:

     (a) any Disposition permitted under any of Sections 7.05(r), 7.05(s),
7.05(t), 7.05(u) and 7.05(v) that constitutes an Investment, to the
extent that the aggregate amount of all such Investments does not exceed $10,000,000
outstanding at any time,

     (b) any Investment of the type permitted by clause (y) of Section
7.03(n),

     (c) any Investment of the type permitted by clause (z) of Section
7.03(n),

     (d) any Permitted Guarantee with respect to obligations of a Qualified Designated
Entity, and

     (e) one or more other Investments (other than Guarantees of Indebtedness for borrowed
money) in Qualified Designated Entities that in the aggregate do not exceed $10,000,000 at
any time.

          “Permitted Unsecured Debt” means unsecured Indebtedness of Holdings or the Borrower that (a)
matures no earlier than the date which is six months after the Maturity Date in respect of the Term
B Facility, (b) has no amortization (other than the following mandatory prepayment or redemption
provisions: change of control on terms no more restrictive than the terms of this Agreement and
asset sale and excess proceeds prepayments or redemptions that are subject in all respects to the
prior payment of the Obligations pursuant to the terms of this Agreement (or, in the case of high
yield debt or convertible debt, customary high yield or convertible (as applicable) change of
control and asset sale mandatory prepayments for issuers in similar lines of business of similar
credit quality)) and (c) contains covenants, defaults and similar provisions no less favorable to
Holdings and its Subsidiaries or the Lenders in any material respect than the terms of this
Agreement (or, with respect to high yield debt or convertible debt, customary high yield (or
convertible, as the case may be) terms for issuers in similar lines of business of similar credit
quality), so long as, after giving pro forma effect to the incurrence of such Indebtedness, (x) no
Default shall have occurred and be continuing and (y) Holdings and its Subsidiaries (including any
Qualified Designated Entities and Joint Venture Entities that are required under GAAP to be
consolidated with Holdings and its Subsidiaries) shall be in Pro Forma Compliance with the Senior
Secured Leverage Covenant.

 

 

          “Person” means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other entity.

          “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of ERISA)
established by the Borrower or, with respect to any such plan that is subject to Section 412 of the
Code or Title IV of ERISA, any ERISA Affiliate.

          “Plan of Reorganization” means the Fifth Amended Joint Plan of Reorganization of Holdings and
its Subsidiaries dated July 30, 2003.

          “Pledged Debt” has the meaning specified in Section 1(d)(iv) of the Security
Agreement.

          “Pledged Equity” has the meaning specified in Section 1(d)(iii) of the Security
Agreement.

          “Prepayment Maximum Senior Secured Leverage Ratio” means 3.50:1.00.

          “Pro Forma Compliance” means, with respect to any of the Incurrence Test, the Senior Secured
Leverage Covenant or any Revolver Maintenance Covenant, compliance with such covenant determined on
the basis of the most recently ended Measurement Period for which financial information has been
delivered to the Administrative Agent pursuant to Section 6.01(a) or (b),
calculated as though the relevant Indebtedness had been created, incurred, issued or assumed or
Investment made as of the first day of such Measurement Period and, in the case of any creation,
incurrence, issuance or assumption of Indebtedness, as though any Indebtedness that will be repaid
with the proceeds of such Indebtedness had been so repaid or refinanced as of the first day of such
Measurement Period.

          “QDE Credit Documents” has the meaning specified in Section 7.03(n).

          “Qualified Designated Entity” means (i) a Person that, at the time of the making of the
initial Investment by a Loan Party in such Person, holds or is intended to hold, whether directly
or indirectly through one or more Subsidiaries, one or more FCC Licenses as, or is eligible to
participate in an FCC auction or auctions for FCC Licenses and/or purchase of FCC Licenses or
spectrum in an after-market therefor from time to time as, a “Designated Entity,” “Entrepreneur,”
“Small Business,” or “Very Small Business,” as those terms are defined under FCC rules and
regulations as in effect at the time of the making of such Investment or (ii) a wholly-owned
subsidiary of a Person referred to in clause (i) above; provided, however,
that no such Person controlled by Holdings or any of its Subsidiaries shall be a Qualified
Designated Entity. Unless otherwise specified, as used herein the term “Qualified Designated
Entity” shall include the ANB Entities.

          “Qualified Designated Entity Agreements” means all written agreements governing Investments by
Holdings and its Subsidiaries in Qualified Designated Entities and all written agreements governing
material transactions and business relationships between Holdings and its Subsidiaries, on the one
hand, and any Qualified Designated Entity or member thereof, on the other, including, without
limitation, limited liability company agreements, partnership agreements, management services
agreements, license agreements, and agreements governing

 

 

loans made to, and commitments to lend to or invest in, a Qualified Designated Entity
(including for the avoidance of doubt the ANB Credit Documents, the ANB Equity Documents and all
QDE Credit Documents).

          “Qualified Preferred Stock” means preferred stock of Holdings that (a) has no mandatory
redemption feature exercisable on a date earlier than 180 days after the Maturity Date in respect
of the Term B Facility, (b) has no requirements for the payment in cash of dividends or other
distributions on a date earlier than 180 days after the Maturity Date in respect of the Term B
Facility and (c) contains covenants, if any, no more restrictive than those customarily found in a
high-yield debt offering.

          “Reduction Amount” has the meaning set forth in Section 2.04(b)(vii).

          “Register”
has the meaning specified in Section 10.06(d).

          “Related Parties” means, with respect to any Person, such Person’s Affiliates and the
partners, directors, officers, employees, agents, trustees and advisors of such Person and of such Person’s
Affiliates.

          “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA, other than
events for which the 30-day notice period has been waived.

          “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Term B Loans or Revolving Credit Loans, a Committed Loan Notice and (b) with
respect to an L/C Credit Extension, a Letter of Credit Application.

          “Required Lenders” means, as of any date of determination, Lenders having more than 50% of the
sum of the (a) Total Outstandings (with the aggregate amount of each Revolving Credit Lender’s risk
participation and funded participation in L/C Obligations being deemed “held” by such Revolving
Credit Lender for purposes of this definition) and (b) aggregate unused Revolving Credit
Commitments; provided that the unused Revolving Credit Commitment of, and the portion of
the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes
of making a determination of Required Lenders.

          “Required Principal Payments” means, with respect to any Person for any period, the sum of all
regularly scheduled principal payments or redemptions of outstanding funded debt made during such
period.

          “Required Revolving Lenders” means, as of any date of determination, Revolving Credit Lenders
holding more than 50% of the sum of the (a) Total Revolving Credit Outstandings (with the aggregate
amount of each Revolving Credit Lender’s risk participation and funded participation in L/C
Obligations being deemed “held” by such Revolving Credit Lender for purposes of this definition)
and (b) aggregate unused Revolving Credit Commitments; provided that the unused Revolving
Credit Commitment of, and the portion of the Total Revolving Credit Outstandings held or deemed
held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required
Revolving Lenders.

 

          “Required Term B Lenders” means, as of any date of determination, Term B Lenders holding more
than 50% of the aggregate outstanding principal amount of Term B Loans; provided that the
portion of the Term B Loans held by any Defaulting Lender shall be excluded for purposes of making
a determination of Required Term B Lenders.

          “Responsible Officer” means any of the chief executive officer, president, chief financial
officer, chief operations officer, treasurer, assistant treasurer or controller of a Loan Party.
Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed
to have acted on behalf of such Loan Party.

          “Restricted Payment” means any dividend or other distribution (whether in cash, securities or
other property) with respect to any capital stock or other Equity Interest of any Person or any of
its Subsidiaries, or any payment (whether in cash, securities or other property), including any
sinking fund or similar deposit, on account of the purchase, redemption, retirement, defeasance,
acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on
account of any return of capital to any Person’s stockholders, partners or members (or the
equivalent of any thereof), or on account of any option, warrant or other right to acquire any such
dividend or other distribution or payment.

          “Revolver Maintenance Covenant Compliance Certificate” means a certificate substantially in
the form of Exhibit C-1.

          “Revolver Maintenance Covenants” means the covenants contained in each of Sections
7.10(a), 7.10(b) and 7.10(d).

          “Revolving Credit Borrowing” means a borrowing consisting of simultaneous Revolving Credit
Loans of the same Type and, in the case of Eurodollar Rate Loans, having the same Interest Period
made by each of the Revolving Credit Lenders pursuant to Section 2.01(b).

          “Revolving Credit Commitment” means, as to each Revolving Credit Lender, its obligation to (a)
make Revolving Credit Loans to the Borrower pursuant to Section 2.01(b) and (b) purchase
participations in L/C Obligations, in an aggregate principal amount at any one time outstanding not
to exceed the amount set forth opposite such Lender’s name on Schedule 2.01 under the
caption “Revolving Credit Commitment” or opposite such caption in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted
from time to time in accordance with this Agreement.

          “Revolving Credit Facility” means, at any time, the aggregate amount of the Revolving Credit
Lenders’ Revolving Credit Commitments at such time, as the same may be increased in accordance with
Section 2.13.

          “Revolving Credit Lender” means, at any time, any Lender that has a Revolving Credit
Commitment at such time.

          “Revolving Credit Loan” has the meaning specified in Section 2.01(b).

 

 

          “Revolving Credit Note” means a promissory note made by the Borrower payable to the order of
any Revolving Credit Lender evidencing Revolving Credit Loans made by such Revolving Credit Lender,
in substantially the form of Exhibit B-2.

          “Revolving Facility Covenant” means any term, covenant or agreement contained in any of
Section 7.02(b) or Section 7.06(b) or any Revolver Maintenance Covenant.

          “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc.
and any successor thereto.

          “SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding
to any of its principal functions.

          “Secured Hedge Agreement” means any interest rate Swap Contract required or permitted under
Article VI or VII that is entered into by and between the Borrower and any Hedge
Bank.

          “Secured Obligations” has the meaning specified in Section 2 of the Security
Agreement.

          “Secured Parties” means, collectively, the Administrative Agent, the Lenders, the L/C Issuer,
the Hedge Banks, each co-agent or sub-agent appointed by the Administrative Agent from time to time
pursuant to Section 9.05, and the other Persons the Obligations owing to which are or are
purported to be secured by the Collateral under the terms of the Collateral Documents.

          “Security Agreement” has the meaning specified in Section 4.01(a)(iii).

          “Security Agreement Supplement” has the meaning specified in Section 22(b) of the
Security Agreement.

          “Senior Secured Leverage Covenant” means the covenant contained in Section 7.10(c).

          “Senior Secured Leverage Covenant Compliance Certificate” means a certificate substantially in
the form of Exhibit C-2.

          “Solvent” and “Solvency” mean, with respect to any Person on any date of determination, that
on such date (a) the fair value of the property of such Person is greater than the total amount of
liabilities, including, without limitation, contingent liabilities, of such Person, (b) the present
fair salable value of the assets of such Person is not less than the amount that will be required
to pay the probable liability of such Person on its debts as they become absolute and matured, (c)
such Person does not intend to, and does not believe that it will, incur debts or liabilities
beyond such Person’s ability to pay such debts and liabilities as they mature and (d) such Person
is not engaged in business or a transaction, and is not about to engage in business or a
transaction, for which such Person’s property would constitute an unreasonably small capital. The
amount of contingent liabilities at any time shall be computed as the amount that, in the light of
all the facts and circumstances existing at such time, represents the amount that can reasonably be
expected to become an actual or matured liability.

 

 

          “SPC” has the meaning specified in Section 10.06(i).

          “Stock-Pay Obligations” means (i) a commitment to purchase Equity Interests in a Qualified
Designated Entity or a Joint Venture Entity (including by way of a put obligation) or otherwise to
fund a Qualified Designated Entity or a Joint Venture Entity to the extent that such commitment is
permitted to be satisfied in full with common Equity Interests of Holdings or Qualified Preferred
Stock (or any combination thereof) without any cash make-whole or similar payments or other cash
payments, (ii) the purchase of Equity Interests in a Qualified Designated Entity or a Joint Venture
Entity (including by way of a put obligation) or other funding of a Qualified Designated Entity or
a Joint Venture Entity, to the extent that such purchase or funding is effected with common Equity
Interests of Holdings or Qualified Preferred Stock (or any combination thereof) or (iii) a
Permitted Debt Put Right or a purchase or other payment in respect of Indebtedness of a Qualified
Designated Entity or a Joint Venture Entity to the extent that such purchase or other payment is
effected with common Equity Interests of Holdings or Qualified Preferred Stock (or any combination
thereof) pursuant thereto.

          “Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which shares of securities or other ownership interests having
ordinary voting power for the election of a majority of the directors, managers or other members of
its governing body (other than securities or interests having such power only by reason of the
happening of a contingency) are at the time beneficially owned, or the management of which is
otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such
Person. All references herein to a “Subsidiary” or to “Subsidiaries” shall refer
to a Subsidiary or Subsidiaries of Holdings (unless otherwise specified), but shall exclude (x) the
Excluded Subsidiaries, (y) until such time as Holdings beneficially owns, directly or indirectly,
shares of securities or other ownership interests having the power to elect a majority of the
directors, managers or other members of its governing body (other than securities or interests
having such power only by reason of the happening of a contingency) of an ANB Entity, such ANB
Entity and (z) until such time as Holdings beneficially owns, directly or indirectly, 100% of the
Equity Interests of a Joint Venture Entity, Qualified Designated Entity or former Qualified
Designated Entity in which Holdings or any of it Subsidiaries makes any Investment pursuant to
Section 7.03(k), Section 7.03(n) or Section 7.03(o), each such Joint
Venture Entity, Qualified Designated Entity or former Qualified Designated Entity.

          “Subsidiary Guarantor” means each Domestic Subsidiary of the Borrower that is party to the
Subsidiary Guaranty.

          “Subsidiary Guaranty” has the meaning specified in the definition of “Guaranty”.

          “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options, forward commodity
contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or
options or forward bond or forward bond price or forward bond index transactions, interest rate
options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any

 

 

combination of any of the foregoing (including any options to enter into any of the
foregoing), whether or not any such transaction is governed by or subject to any master agreement,
and (b) any and all transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master
Agreement, or any other master agreement (any such master agreement, together with any related
schedules, a “Master Agreement”), including any such obligations or liabilities under any Master
Agreement.

          “Swap Termination Value” means, in respect of any one or more Swap Contracts, after taking
into account the effect of any legally enforceable netting agreement relating to such Swap
Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and
termination value(s) determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Swap Contracts, as determined based upon one or more mid-market or
other readily available quotations provided by any recognized dealer in such Swap Contracts (which
may include a Lender or any Affiliate of a Lender).

          “Synthetic Debt” means, with respect to any Person as of any date of determination thereof,
all Obligations of such Person in respect of transactions entered into by such Person that are
intended to function primarily as a borrowing of funds (including any minority interest
transactions that function primarily as a borrowing) but are not otherwise included in the
definition of “Indebtedness” or as a liability on the consolidated balance sheet of such Person and
its Subsidiaries in accordance with GAAP.

          “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a so-called
synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or possession
of property (including sale and leaseback transactions), in each case, creating obligations that do
not appear on the balance sheet of such Person but which, upon the application of any Debtor Relief
Laws to such Person, would be characterized as the indebtedness of such Person (without regard to
accounting treatment).

          “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings,
assessments, fees or other charges imposed by any Governmental Authority, including any interest,
additions to tax or penalties applicable thereto.

          “Term B Borrowing” means a borrowing consisting of simultaneous Term B Loans of the same Type
and, in the case of Eurodollar Rate Loans, having the same Interest Period made by each of the Term
B Lenders pursuant to Section 2.01(a).

          “Term B Commitment” means, as to each Term B Lender, its obligation to make Term B Loans to
the Borrower pursuant to Section 2.01(a) in an aggregate principal amount at any one time
outstanding not to exceed the amount set forth opposite such Lender’s name on Schedule 2.01
under the caption “Term B Commitment” or opposite such caption in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted
from time to time in accordance with this Agreement.

 

 

          “Term B Facility” means, at any time, (i) on or prior to the Closing Date, the aggregate
amount of the Term B Commitments at such time and (ii) thereafter the aggregate principal amount of
the Term B Loans of all Term B Lenders outstanding at such time, as the same may be increased in
accordance with Section 2.13.

          “Term B Lender” means, at any time, (i) on or prior to the Closing Date, any Lender that has a
Term B Commitment at such time and (ii) at any time after the Closing Date, any Lender that holds
Term B Loans at such time.

          “Term B Loan” means an advance made by any Term B Lender under the Term B Facility.

          “Term B Note” means a promissory note made by the Borrower in favor of a Term B Lender,
evidencing Term B Loans made by such Term B Lender in substantially the form of Exhibit B-1
hereto.

          “Termination Date” means (a) with respect to the Revolving Credit Facility, the earlier of (i)
May 31, 2011 and (ii) the date of termination in whole of the Revolving Credit Commitments and the
Letter of Credit Sublimit pursuant to Section 2.05 or 8.02 and (b) with respect to
the Term B Facility, the earlier of (i) May 31, 2013 and (ii) the date of termination in whole of
the Term B Commitments pursuant to Section 2.05 or 8.02.

          “Threshold Amount” means $25,000,000.

          “Toledo/Sandusky Assets” means assets, properties and rights of the Borrower and its
Subsidiaries that pertain to the Loan Parties’ business of providing PCS wireless
telecommunications services in the markets covered by the basic trading areas of Toledo, Ohio (BTA
#444) and Sandusky, Ohio (BTA #403).

          “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C
Obligations.

          “Total Revolving Credit Outstandings” means the aggregate Outstanding Amount of all Revolving
Credit Loans and L/C Obligations.

          “Transaction” means, collectively, (a) the Refinancing, (b) the entering into by the Loan
Parties and their applicable Subsidiaries of the Loan Documents to which they are or are intended
to be a party, and (c) the payment of the fees and expenses incurred in connection with the
consummation of the foregoing.

          “Type” means, with respect to a Loan, its character as a Base Rate Loan or a Eurodollar Rate
Loan.

          “Uncollateralized Letter of Credit” means a Letter of Credit that has not been Cash
Collateralized, whether or not such Letter of Credit is drawn or undrawn at the time of
determination.

 

 

          “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit liabilities under
Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, as determined
using the most recent actuarial value of the Plan prepared in accordance with the assumptions used
for funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan year.

          “United States” and “U.S.” mean the United States of America.

          “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

          “U.S. Loan Party” means any Loan Party that is organized under the laws of one of the states
of the United States of America and that is not a CFC.

          1.02 Other Interpretive Provisions. With reference to this Agreement and each other
Loan Document, unless otherwise specified herein or in such other Loan Document:

     (a) 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 (including any
Organization Document) shall be construed as referring to such agreement, instrument or
other document as from time to time amended, supplemented or otherwise modified (subject to
any restrictions on such amendments, supplements or modifications set forth herein or in any
other Loan Document), (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 when used in any Loan Document, shall be
construed to refer to such Loan Document in its entirety and not to any particular provision
thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any
law shall include all statutory and regulatory provisions consolidating, amending replacing
or interpreting such law and any reference to any law or regulation shall, unless otherwise
specified, refer to such law or regulation as amended, modified or supplemented from time to
time, (vi) 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, (vii) the words
“knowledge” or “knows,” when used with respect to any Loan Party, means (A)
the actual knowledge of a Responsible Officer of such Loan Party and (B) knowledge that
would be obtained by a Responsible Officer of such Loan Party exercising customary
diligence, (viii) the words “in all material respects” or words of similar import
when used herein with respect to the truth or correctness of representations and warranties
mean, with respect to any representation that is by its terms qualified as to materiality,
in all respects, and with
respect to any representation that is by its terms not qualified as to materiality, in
all material respects and (ix) the components of the definition of “Solvent” and “Solvency”

 

 

set forth herein shall be construed in accordance with applicable state fraudulent
conveyance laws and with Section 548 of the Bankruptcy Code of the United States.

     (b) In the computation of periods of time from a specified date to a later specified
date, the word “from” means “from and including;” the words “to” and
“until” each mean “to but excluding;” and the word “through” means
“to and including.”

     (c) Section headings herein and in the other Loan Documents are included for
convenience of reference only and shall not affect the interpretation of this Agreement or
any other Loan Document.

          1.03 Accounting Terms. (a) Generally. All accounting terms not specifically
or completely defined herein shall be construed in conformity with, and all financial data
(including financial ratios and other financial calculations) required to be submitted pursuant to
this Agreement shall be prepared in conformity with, GAAP applied on a consistent basis, as in
effect from time to time, applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed herein.

          (b) Changes in GAAP. If at any time any change in GAAP would affect the computation
of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or
the Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall
negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof
in light of such change in GAAP (subject to the approval of the Required Lenders); provided
that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance
with GAAP prior to such change therein and (ii) the Borrower shall provide to the Administrative
Agent and the Lenders financial statements and other documents required under this Agreement or as
reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP.

          1.04 Rounding. Any financial ratios required to be maintained by the Borrower
pursuant to this Agreement shall be calculated by dividing the appropriate component by the other
component, carrying the result to one place more than the number of places by which such ratio is
expressed herein and rounding the result up or down to the nearest number (with a rounding-up if
there is no nearest number).

          1.05 Times of Day. Unless otherwise specified, all references herein to times of day
shall be references to Eastern time (daylight or standard, as applicable).

          1.06 Letter of Credit Amounts. Unless otherwise specified, all references herein to the amount of a Letter of Credit at
any time shall be deemed to be the stated amount of such Letter of Credit in effect at such time;
provided, however, that with respect to any Letter of Credit that, by its terms or
the terms of any Issuer Document related thereto, provides for one or more automatic increases in
the stated amount thereof, the amount of such Letter of Credit shall be deemed to be the maximum
stated amount of such Letter of Credit after giving effect to all such increases, whether or not
such maximum stated amount is in effect at such time.

 

 

          1.07 Currency Equivalents Generally. Any amount specified in this Agreement (other
than in Articles II, IX and X) or any of the other Loan Documents to be in
Dollars shall also include the equivalent of such amount in any currency other than Dollars, such
equivalent amount to be determined at the rate of exchange quoted by Bank of America in New York at
the close of business on the Business Day immediately preceding any date of determination thereof,
to prime banks in New York, New York for the spot purchase in the New York foreign exchange market
of such amount in U.S. dollars with such other currency.

ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

          2.01 The Loans. (a) The Term B Borrowings. Subject to the terms and
conditions set forth herein, (i) the “Term Loans” outstanding under the Existing Credit Agreement
shall be continued as and converted into Term B Loans under this Agreement (with such assignments
from “Lenders” under the Existing Credit Agreement being deemed made so as to result in the Term B
Commitments of the Term B Lenders being as set forth on Schedule 2.01) and (ii) each Term B Lender
severally agrees to make a single loan to the Borrower on the Closing Date or, in the case of any
Incremental Facility consisting of Term B Commitments, the Increase Effective Date in respect of
such Incremental Facility, in each case in an amount not to exceed such Term B Lender’s Term B
Commitment at such time (less the amount of Term B Loans deemed made by such Term B Lender pursuant
to clause (i) above). The Term B Borrowing shall consist of Term B Loans made
simultaneously by the Term B Lenders in accordance with their respective Term B Commitments.
Amounts borrowed under this Section 2.01(a)(i) and repaid or prepaid may not be reborrowed.
Term B Loans may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

          (b) The Revolving Credit Borrowings. Subject to the terms and conditions set forth
herein, each Revolving Credit Lender severally agrees to make loans (each such loan, a “Revolving
Credit Loan”) to the Borrower from time to time, on any Business Day during the Availability
Period, in an aggregate amount not to exceed at any time outstanding the amount of such Lender’s
Revolving Credit Commitment; provided, however, that after giving effect to any
Revolving Credit Borrowing, (i) the Total Revolving Credit Outstandings shall not exceed the
Revolving Credit Facility at such time and (ii) the aggregate Outstanding Amount of the Revolving
Credit Loans of any Lender plus such Revolving Credit Lender’s Applicable Revolving Credit
Percentage of the Outstanding Amount of all L/C Obligations shall not exceed
such Revolving Credit Lender’s Revolving Credit Commitment. Within the limits of each
Lender’s Revolving Credit Commitment, and subject to the other terms and conditions hereof, the
Borrower may borrow under this Section 2.01(b), prepay under Section 2.04, and
reborrow under this Section 2.01(b). Revolving Credit Loans may be Base Rate Loans or
Eurodollar Rate Loans, as further provided herein.

          2.02 Borrowings, Conversions and Continuations of Loans. (a) Each Term B Borrowing,
each Revolving Credit Borrowing, each conversion of Term B Loans or Revolving Credit Loans from one
Type to the other, and each continuation of Eurodollar Rate Loans shall be made upon the Borrower’s
irrevocable notice to the Administrative Agent, which may be given by telephone. Each such notice
must be received by the Administrative Agent not later than 12:00 p.m. (i) three Business Days
prior to the requested date of any Borrowing of,

 

 

conversion to or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate
Loans to Base Rate Loans, and (ii) on the requested date of any Borrowing of Base Rate Loans. Each
telephonic notice by the Borrower pursuant to this Section 2.02(a) must be confirmed
promptly by delivery to the Administrative Agent of a written Committed Loan Notice, appropriately
completed and signed by a Responsible Officer of the Borrower. Each Borrowing of, conversion to or
continuation of Eurodollar Rate Loans shall be in a principal amount of $3,000,000 or a whole
multiple of $1,000,000 in excess thereof. Except as provided in Section 2.03(c), each
Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $500,000 or a whole
multiple of $100,000 in excess thereof. Each Committed Loan Notice (whether telephonic or
written) shall specify (i) whether the Borrower is requesting a Term B Borrowing, a Revolving
Credit Borrowing, a conversion of Term B Loans or Revolving Credit Loans from one Type to the
other, or a continuation of Eurodollar Rate Loans, (ii) the requested date of the Borrowing,
conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal
amount of Loans to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to
which existing Term B Loans or Revolving Credit Loans are to be converted, and (v) with respect to
Eurodollar Rate Loans, the duration of the Interest Period with respect thereto. If the Borrower
fails to specify a Type of Loan in a Committed Loan Notice or if the Borrower fails to give a
timely notice requesting a conversion or continuation, then the applicable Term B Loans or
Revolving Credit Loans shall be made as, or converted to, Base Rate Loans. Any such automatic
conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in
effect with respect to the applicable Eurodollar Rate Loans. If the Borrower requests a Borrowing
of, conversion to, or continuation of Eurodollar Rate Loans in any such Committed Loan Notice, but
fails to specify an Interest Period, it will be deemed to have specified an Interest Period of one
month.

          (b) Following receipt of a Committed Loan Notice, the Administrative Agent shall promptly
notify each Lender of the amount of its Applicable Percentage under the applicable Facility of the
applicable Term B Loans or Revolving Credit Loans, and if no timely notice of a conversion or
continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the
details of any automatic conversion to Base Rate Loans described in Section 2.02(a). In
the case of a Term B Borrowing or a Revolving Credit Borrowing, each Appropriate Lender shall make
the amount of its Loan available to the Administrative Agent in immediately available funds at the
Administrative Agent’s Office not later than 1:00 p.m. on the Business Day specified in the
applicable Committed Loan Notice. Upon satisfaction of the applicable conditions set forth in
Section 4.02 (and, if such Borrowing is the initial Credit Extension, Section
4.01), the Administrative Agent shall make all funds so received available to the Borrower in
like funds as received by the Administrative Agent either by (i) crediting the account of the
Borrower on the books of Bank of America with the amount of such funds or (ii) wire transfer of
such funds, in each case in accordance with instructions provided to (and reasonably acceptable to)
the Administrative Agent by the Borrower; provided, however, that if, on the date a
Committed Loan Notice with respect to a Revolving Credit Borrowing is given by the Borrower, there
are L/C Borrowings outstanding, then the proceeds of such Revolving Credit Borrowing first
shall be applied to the payment in full of any such L/C Borrowings, and second, shall be
made available to the Borrower as provided above.

          (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted
only on the last day of an Interest Period for such Eurodollar Rate Loan.

 

 

During the existence of a Default, no Loans may be requested as, converted to or continued as
Eurodollar Rate Loans without the consent of the Required Lenders.

          (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for Eurodollar Rate Loans upon determination of
such interest rate. At any time that Base Rate Loans are outstanding, the Administrative Agent
shall notify the Borrower and the Lenders of any change in Bank of America’s prime rate used in
determining the Base Rate promptly following the public announcement of such change.

          (e) After giving effect to all Term B Borrowings, all conversions of Term B Loans from one
Type to the other, and all continuations of Term B Loans as the same Type, there shall not be more
than eight (8) Interest Periods in effect in respect of the Term B Facility. After giving effect
to all Revolving Credit Borrowings, all conversions of Revolving Credit Loans from one Type to the
other, and all continuations of Revolving Credit Loans as the same Type, there shall not be more
than ten (10) Interest Periods in effect in respect of the Revolving Credit Facility.

          (f) Anything in this Section 2.02 to the contrary notwithstanding, the Borrower may
not select Eurodollar Rate for the initial Credit Extension hereunder.

          2.03 Letters of Credit. (a) The Letter of Credit Commitment. (i) Subject
to the terms and conditions set forth herein, (A) each L/C Issuer agrees, in reliance upon the
agreements of the Revolving Credit Lenders set forth in this Section 2.03, (1) from time to
time on any Business Day during the period from the Closing Date until the Letter of Credit
Expiration Date, to issue Letters of Credit for the account of the Borrower, and to amend Letters
of Credit previously issued by it, in accordance with Section 2.03(b), and (2) to honor
drawings under the Letters of Credit; and (B) the Revolving Credit Lenders severally agree to
participate in Letters of Credit issued for the account of the Borrower and any drawings
thereunder; provided that after giving effect to any L/C Credit Extension with respect to
any Letter of Credit, (x) the Total Revolving Credit Outstandings shall not exceed the Revolving
Credit Facility at such time, (y) the aggregate Outstanding Amount of the Revolving Credit Loans of
any Revolving Credit Lender, plus such Lender’s Applicable Revolving Credit Percentage of
the Outstanding Amount of all L/C Obligations at such time shall not exceed such Lender’s Revolving
Credit Commitment, and (z) the Outstanding Amount of the L/C Obligations shall not exceed the
Letter of Credit Sublimit. Each request by the Borrower for the issuance or amendment of a Letter
of Credit shall be deemed to be a representation by the Borrower that the L/C Credit Extension so
requested complies with the conditions set forth in the proviso to the preceding sentence. Within
the foregoing limits, and subject to the terms and conditions hereof, the Borrower’s ability to
obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may, during the
foregoing period, obtain Letters of Credit to replace Letters of Credit that have expired or that
have been drawn upon and reimbursed.

          (ii) No L/C Issuer shall issue any Letter of Credit if:

 

 

     (A) the expiry date of such requested Letter of Credit would occur more than twelve
months after the date of issuance, unless the Required Revolving Lenders have approved such
expiry date; or

     (B) the expiry date of such requested Letter of Credit would occur after the Letter of
Credit Expiration Date, unless all the Revolving Credit Lenders have approved such expiry
date.

     (iii) No L/C Issuer shall be under any obligation to issue any Letter of Credit if:

     (A) any order, judgment or decree of any Governmental Authority or arbitrator shall by
its terms purport to enjoin or restrain such L/C Issuer from issuing such Letter of Credit,
or any Law applicable to such L/C Issuer or any guideline, directed duty, request or
directive (whether or not having the force of law) from or agreement with any Governmental
Authority with jurisdiction over such L/C Issuer shall prohibit, or request that such L/C
Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in
particular or shall impose upon such L/C Issuer with respect to such Letter of Credit any
restriction, reserve or capital requirement (for which such L/C Issuer is not otherwise
compensated hereunder) not in effect on the Closing Date, or shall impose upon such L/C
Issuer any unreimbursed loss, cost or expense which was not applicable on the Closing Date
and which such L/C Issuer in good faith deems material to it;

     (B) the issuance of such Letter of Credit would violate any Laws or guideline, directed
duty or request of or agreement with any Governmental Authority (whether or not having the
force of law) or one or more policies of such L/C Issuer;

     (C) except as otherwise agreed by the Administrative Agent and such L/C Issuer, such
Letter of Credit is in an initial stated amount less than $100,000;

     (D) such Letter of Credit is to be denominated in a currency other than Dollars;

     (E) such Letter of Credit contains any provisions for automatic reinstatement of the
stated amount after any drawing thereunder; or

     (F) a default of any Lender’s obligations to fund under Section 2.03(c) exists
or any Lender is at such time a Defaulting Lender hereunder, unless such L/C Issuer has
entered into satisfactory arrangements with the Borrower or such Lender to eliminate such
L/C Issuer’s risk with respect to such Lender.

     (iv) No L/C Issuer shall amend any Letter of Credit if such L/C Issuer would not be permitted
at such time to issue such Letter of Credit in its amended form under the terms hereof.

     (v) No L/C Issuer shall be under any obligation to amend any Letter of Credit if (A) such L/C
Issuer would have no obligation at such time to issue such Letter of Credit in its

 

 

amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not
accept the proposed amendment to such Letter of Credit.

          (vi) Each L/C Issuer shall act on behalf of the Revolving Credit Lenders with respect to any
Letters of Credit issued by it and the documents associated therewith, and each L/C Issuer shall
have all of the benefits and immunities (A) provided to the Administrative Agent in Article
IX with respect to any acts taken or omissions suffered by such L/C Issuer in connection with
Letters of Credit issued by it or proposed to be issued by it and Issuer Documents pertaining to
such Letters of Credit as fully as if the term “Administrative Agent” as used in Article IX
included such L/C Issuer with respect to such acts or omissions, and (B) as additionally provided
herein with respect to each L/C Issuer.

          (b) Procedures for Issuance and Amendment of Letters of Credit. (i) Each Letter of
Credit shall be issued or amended, as the case may be, upon the request of the Borrower delivered
to the applicable L/C Issuer (with a copy to the Administrative Agent) in the form of a Letter of
Credit Application, appropriately completed and signed by a Responsible Officer of the Borrower.
Such Letter of Credit Application must be received by the applicable L/C Issuer and the
Administrative Agent not later than 12:00 p.m. at least two Business Days (or such later date and
time as the Administrative Agent and the applicable L/C Issuer may agree in a particular instance
in their sole discretion) prior to the proposed issuance date or date of amendment, as the case may
be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the applicable L/C Issuer: (A) the
proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the
amount thereof; (C) the expiry date thereof; (D) the name and address of the beneficiary thereof;
(E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the
full text of any certificate to be presented by such beneficiary in case of any drawing thereunder;
and (G) such other matters as the applicable L/C Issuer may require. In the case of a request for
an amendment of any outstanding Letter of Credit, such Letter of Credit Application shall specify
in form and detail satisfactory to the applicable L/C Issuer (A) the Letter of Credit to be
amended; (B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature
of the proposed amendment; and (D) such other matters as the applicable L/C Issuer may require.
Additionally, the Borrower shall furnish to the applicable L/C Issuer and the Administrative Agent
such other documents and information pertaining to such requested Letter of Credit issuance or
amendment, including any Issuer Documents, as the applicable L/C Issuer or the Administrative Agent
may require.

          (ii) Promptly after receipt of any Letter of Credit Application, the applicable L/C Issuer will
confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent
has received a copy of such Letter of Credit Application from the Borrower and, if not, such L/C
Issuer will provide the Administrative Agent with a copy thereof. Unless such L/C Issuer has
received written notice from any Revolving Credit Lender, the Administrative Agent or any Loan
Party, at least one Business Day prior to the requested date of issuance or amendment of the
applicable Letter of Credit, that one or more applicable conditions contained in Article IV
shall not then be satisfied, then, subject to the terms and conditions hereof, such L/C Issuer
shall, on the requested date, issue a Letter of Credit for the account of the Borrower or enter
into the applicable amendment, as the case may be, in each case in accordance with such L/C
Issuer’s usual and customary business practices. Immediately upon the issuance

 

 

of each Letter of Credit, each Revolving Credit Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from such L/C Issuer a risk participation in
such Letter of Credit in an amount equal to the product of such Revolving Credit Lender’s
Applicable Revolving Credit Percentage times the amount of such Letter of Credit.

          (iii) Promptly after its delivery of any Letter of Credit or any amendment to a Letter of
Credit to an advising bank with respect thereto or to the beneficiary thereof, the applicable L/C
Issuer will also deliver to the Borrower and the Administrative Agent a true and complete copy of
such Letter of Credit or amendment.

          (c) Drawings and Reimbursements; Funding of Participations. (i) Upon receipt from
the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the
applicable L/C Issuer shall notify the Borrower and the Administrative Agent of the date and amount
thereof. Not later than 12:00 p.m. on the date of any payment by the applicable L/C Issuer under a
Letter of Credit (each such date, an “Honor Date”), the Borrower shall reimburse such L/C Issuer
through the Administrative Agent in an amount equal to the amount of such drawing. If the Borrower
fails to so reimburse such L/C Issuer by such time, the Administrative Agent shall promptly notify
each Revolving Credit Lender of the Honor Date, the amount of the unreimbursed drawing (the
“Unreimbursed Amount”), and the amount of such Revolving Credit Lender’s Applicable Revolving
Credit Percentage thereof. In such event, the Borrower shall be deemed to have requested a
Revolving Credit Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount equal
to the Unreimbursed Amount, without regard to the minimum and multiples specified in Section
2.02 for the principal amount of Base Rate Loans, but subject to the amount of the unutilized
portion of the Revolving Credit Commitments and the conditions set forth in Section 4.02
(other than the delivery of a Committed Loan Notice). Any notice given by an L/C Issuer or the
Administrative Agent pursuant to this Section 2.03(c)(i) may be given by telephone if
immediately confirmed in writing; provided that the lack of such an immediate confirmation
shall not affect the conclusiveness or binding effect of such notice.

          (ii) Each Revolving Credit Lender shall upon any notice pursuant to Section 2.03(c)(i)
make funds available to the Administrative Agent for the account of the applicable L/C Issuer at
the Administrative Agent’s Office in an amount equal to its Applicable Revolving Credit Percentage
of the Unreimbursed Amount not later than 1:00 p.m. on the Business Day specified in such notice by
the Administrative Agent, whereupon, subject to the provisions of Section 2.03(c)(iii),
each Revolving Credit Lender that so makes funds available shall be deemed to have made a Base Rate
Loan to the Borrower in such amount. The Administrative Agent shall remit the funds so received to
the applicable L/C Issuer.

          (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a Revolving
Credit Borrowing of Base Rate Loans because the conditions set forth in Section 4.02 (other
than delivery by the Borrower of a Committed Loan Notice) cannot be satisfied or for any other
reason, the Borrower shall be deemed to have incurred from the applicable L/C Issuer an L/C
Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing
shall be due and payable on demand (together with interest) and shall bear interest at the Default
Rate. In such event, each Revolving Credit Lender’s payment to the Administrative Agent for the
account of the applicable L/C Issuer pursuant to Section 2.03(c)(ii)

 

 

shall be deemed payment in respect of its participation in such L/C Borrowing and shall
constitute an L/C Advance from such Lender in satisfaction of its participation obligation under
this Section 2.03.

          (iv) Until each Revolving Credit Lender funds its Revolving Credit Loan or L/C Advance
pursuant to this Section 2.03(c) to reimburse the applicable L/C Issuer for any amount
drawn under any Letter of Credit, interest in respect of such Lender’s Applicable Revolving Credit
Percentage of such amount shall be solely for the account of such L/C Issuer.

          (v) Each Revolving Credit Lender’s obligation to make Revolving Credit Loans or L/C Advances
to reimburse any L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this
Section 2.03(c), shall be absolute and unconditional and shall not be affected by any
circumstance, including (A) any setoff, counterclaim, recoupment, defense or other right which such
Lender may have against such L/C Issuer, the Borrower or any other Person for any reason
whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or
condition, whether or not similar to any of the foregoing; provided, however, that
each Revolving Credit Lender’s obligation to make Revolving Credit Loans pursuant to this
Section 2.03(c) is subject to the conditions set forth in Section 4.02 (other than
delivery by the Borrower of a Committed Loan Notice ). No such making of an L/C Advance shall
relieve or otherwise impair the obligation of the Borrower to reimburse the applicable L/C Issuer
for the amount of any payment made by such L/C Issuer under any Letter of Credit, together with
interest as provided herein.

          (vi) If any Revolving Credit Lender fails to make available to the Administrative Agent for the
account of the applicable L/C Issuer any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.03(c) by the time specified in Section
2.03(c)(ii), the applicable L/C Issuer shall be entitled to recover from such Lender (acting
through the Administrative Agent), on demand, such amount with interest thereon for the period from
the date such payment is required to the date on which such payment is immediately available to
such L/C Issuer at a rate per annum equal to the greater of the Federal Funds Rate and a rate
determined by such L/C Issuer in accordance with banking industry rules on interbank compensation.
A certificate of the applicable L/C Issuer submitted to any Revolving Credit Lender (through the
Administrative Agent) with respect to any amounts owing under this Section 2.03(c)(vi)
shall be conclusive absent manifest error.

          (d) Repayment of Participations. (i) At any time after any L/C Issuer has made a
payment under any Letter of Credit and has received from any Revolving Credit Lender such Lender’s
L/C Advance in respect of such payment in accordance with Section 2.03(c), if the
Administrative Agent receives for the account of such L/C Issuer any payment in respect of the
related Unreimbursed Amount or interest thereon (whether directly from the Borrower or otherwise,
including proceeds of Cash Collateral applied thereto by the Administrative Agent), the
Administrative Agent will distribute to such Lender its Applicable Revolving Credit Percentage
thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time
during which such Lender’s L/C Advance was outstanding) in the same funds as those received by the
Administrative Agent.

 

 

          (ii) If any payment received by the Administrative Agent for the account of any L/C Issuer
pursuant to Section 2.03(c)(i) is required to be returned under any of the circumstances
described in Section 10.05 (including pursuant to any settlement entered into by such L/C
Issuer in its discretion), each Revolving Credit Lender shall pay to the Administrative Agent for
the account of such L/C Issuer its Applicable Revolving Credit Percentage thereof on demand of the
Administrative Agent, plus interest thereon from the date of such demand to the date such amount is
returned by such Lender, at a rate per annum equal to the Federal Funds Rate from time to time in
effect. The obligations of the Lenders under this clause shall survive the payment in full of the
Obligations and the termination of this Agreement.

          (e) Obligations Absolute. The obligation of the Borrower to reimburse each L/C Issuer
for each drawing under each Letter of Credit issued by such L/C Issuer and to repay each L/C
Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Agreement under all circumstances, including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this Agreement, or
any other Loan Document;

     (ii) the existence of any claim, counterclaim, setoff, defense or other right that the
Borrower or any Subsidiary may have at any time against any beneficiary or any transferee of
such Letter of Credit (or any Person for whom any such beneficiary or any such transferee
may be acting), any L/C Issuer or any other Person, whether in connection with this
Agreement, the transactions contemplated hereby or by such Letter of Credit or any agreement
or instrument relating thereto, or any unrelated transaction;

     (iii) any draft, demand, certificate or other document presented under such Letter of
Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; or any loss or delay in the
transmission or otherwise of any document required in order to make a drawing under such
Letter of Credit;

     (iv) any payment by any L/C Issuer under such Letter of Credit against presentation of
a draft or certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by any L/C Issuer under any Letter of Credit to any Person
purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit of
creditors, liquidator, receiver or other representative of or successor to any beneficiary
or any transferee of such Letter of Credit, including any arising in connection with any
proceeding under any Debtor Relief Law; or

     (v) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including any other circumstance that might otherwise constitute a defense
available to, or a discharge of, the Borrower or any of its Subsidiaries.

          In no event shall the foregoing be construed to excuse an L/C Issuer from liability to the
Borrower to the extent of any direct damages suffered by the Borrower that are found in a final,
non-appealable judgment by a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such L/C Issuer. The Borrower shall promptly

 

 

examine a copy of each Letter of Credit and each amendment thereto that is delivered to it
and, in the event of any claim of noncompliance with the Borrower’s instructions or other
irregularity, the Borrower will immediately notify the applicable L/C Issuer. The Borrower shall
be conclusively deemed to have waived any such claim against the applicable L/C Issuer and its
correspondents unless such notice is given as aforesaid.

          (f) Role of L/C Issuer. Each Lender and the Borrower agree that, in paying any
drawing under a Letter of Credit, no L/C Issuer shall have any responsibility to obtain any
document (other than any sight draft, certificates and documents expressly required by the Letter
of Credit) or to ascertain or inquire as to the validity or accuracy of any such document or the
authority of the Person executing or delivering any such document. None of any L/C Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of any L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in
connection herewith at the request or with the approval of the Revolving Credit Lenders or the
Required Revolving Lenders, as applicable; (ii) any action taken or omitted in the absence of gross
negligence or willful misconduct; or (iii) the due execution, effectiveness, validity or
enforceability of any document or instrument related to any Letter of Credit or Issuer Document.
The Borrower hereby assumes all risks of the acts or omissions of any beneficiary or transferee
with respect to its use of any Letter of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude the Borrower’s pursuing such rights and
remedies as it may have against the beneficiary or transferee at law or under any other agreement.
None of any L/C Issuer, the Administrative Agent, any of their respective Related Parties nor any
correspondent, participant or assignee of any L/C Issuer shall be liable or responsible for any of
the matters described in clauses (i) through (v) of Section 2.03(e);
provided, however, that anything in such clauses to the contrary notwithstanding,
the Borrower may have a claim against an L/C Issuer, and such L/C Issuer may be liable to the
Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential or
exemplary, damages suffered by the Borrower which the Borrower proves were caused by such L/C
Issuer’s willful misconduct or gross negligence or such L/C Issuer’s willful failure to pay under
any Letter of Credit after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In
furtherance and not in limitation of the foregoing, any L/C Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation, regardless of any
notice or information to the contrary, and no L/C Issuer shall be responsible for the validity or
sufficiency of any instrument transferring or assigning or purporting to transfer or assign a
Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in part,
which may prove to be invalid or ineffective for any reason.

          (g) Cash Collateral. Upon the request of the Administrative Agent, (i) if an L/C
Issuer has honored any full or partial drawing request under any Letter of Credit and such drawing
has resulted in an L/C Borrowing, or (ii) if, as of the Letter of Credit Expiration Date, any L/C
Obligation for any reason remains outstanding, the Borrower shall, in each case, immediately Cash
Collateralize the then Outstanding Amount of all L/C Obligations. The Borrower shall be entitled
at any time to Cash Collateralize the Outstanding Amount of any L/C Obligation. Sections
2.04 and 8.02(b) set forth certain additional requirements to deliver Cash Collateral
hereunder. For purposes of this Section 2.03, Section 2.04 and Section
8.02(b), “Cash Collateralize” means to pledge and deposit with or deliver to the Administrative
Agent, for the benefit of each L/C Issuer and the Lenders, as collateral for the L/C Obligations,
cash or deposit

 

 

account balances pursuant to documentation in form and substance satisfactory to the
Administrative Agent and each L/C Issuer (which documents are hereby consented to by the Lenders),
and “Cash Collateral” means all cash and deposit account balances so pledged and deposited.
Derivatives of such term have corresponding meanings. The Borrower hereby grants to the
Administrative Agent, for the benefit of each L/C Issuer and the Lenders, a security interest in
all such cash, deposit accounts and all balances therein and all proceeds of the foregoing. Cash
Collateral shall be maintained in a Cash Collateral Account. If, at any time that the Borrower is
under an obligation hereunder to Cash Collateralize the aggregate Outstanding Amount of L/C
Obligations, the Administrative Agent reasonably determines that any funds held as Cash Collateral
are subject to any right or claim of any Person other than the Administrative Agent or that the
total amount of such funds is less than the aggregate Outstanding Amount of all L/C Obligations,
then the Borrower will, forthwith upon demand by the Administrative Agent, pay to the
Administrative Agent, as additional funds to be deposited as Cash Collateral, an amount equal to
the excess of (x) such aggregate Outstanding Amount over (y) the total amount of funds, if any,
then held as Cash Collateral that the Administrative Agent reasonably determines to be free and
clear of any such right and claim. Upon the drawing of any Letter of Credit for which funds are on
deposit as Cash Collateral, such funds shall be applied, to the extent permitted under applicable
law, to reimburse the L/C Issuers or the Revolving Credit Lenders, as applicable.

          (h) Applicability of ISP98. Unless otherwise expressly agreed by the L/C Issuer and
the Borrower when a Letter of Credit is issued, the rules of the ISP shall apply to each Letter of
Credit.

          (i) Letter of Credit Fees. The Borrower shall pay to the Administrative Agent for the
account of each Revolving Credit Lender in accordance with its Applicable Percentage a Letter of
Credit fee (the “Letter of Credit Fee”) for each Letter of Credit equal to the Applicable Rate in
respect of Eurodollar Rate Loans times the daily amount available to be drawn under such
Letter of Credit. For purposes of computing the daily amount available to be drawn under any
Letter of Credit, the amount of such Letter of Credit shall be determined in accordance with
Section 1.06. Letter of Credit Fees shall be (i) computed on a quarterly basis in arrears
and (ii) due and payable on the first Business Day after the end of each March, June, September and
December, commencing with the first such date to occur after the issuance of such Letter of Credit,
on the Letter of Credit Expiration Date and thereafter on demand. If there is any change in the
Applicable Rate during any quarter, the daily amount available to be drawn under each Letter of
Credit shall be computed and multiplied by the Applicable Rate separately for each period during
such quarter that such Applicable Rate was in effect. Notwithstanding anything to the contrary
contained herein, upon the request of the Required Revolving Lenders, while any Event of Default
exists and is continuing, all Letter of Credit Fees shall accrue at the Default Rate.

          (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer. The
Borrower shall pay directly to each L/C Issuer for its own account a fronting fee with respect to
each Letter of Credit issued by such L/C Issuer, at a rate per annum equal to 0.25%, computed on
the daily amount available to be drawn under such Letter of Credit and on a quarterly basis in
arrears, and due and payable on the first Business Day after the end of each March, June, September
and December, commencing with the first such date to occur after the

 

 

issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on
demand. For purposes of computing the daily amount available to be drawn under any Letter of
Credit, the amount of such Letter of Credit shall be determined in accordance with Section
1.06. In addition, the Borrower shall pay directly to each L/C Issuer for its own account the
customary issuance, presentation, amendment and other processing fees, and other standard costs and
charges, of such L/C Issuer relating to letters of credit as from time to time in effect. Such
customary fees and standard costs and charges are due and payable on demand and are nonrefundable.

          (k) Conflict with Issuer Documents. In the event of any conflict between the terms
hereof and the terms of any Issuer Document, the terms hereof shall control.

          2.04 Prepayments. (a) Optional. The Borrower may, upon notice to the
Administrative Agent (which may be given by telephone if confirmed promptly thereafter in writing),
at any time or from time to time voluntarily prepay Loans in whole or in part without premium or
penalty; provided that (A) such notice must be received by the Administrative Agent not
later than 12:00 p.m. (1) three Business Days prior to any date of prepayment of Eurodollar Rate
Loans and (2) on the date of prepayment of Base Rate Loans; (B) any prepayment of Eurodollar Rate
Loans shall be in a principal amount of $3,000,000 or a whole multiple of $1,000,000 in excess
thereof; and (C) any prepayment of Base Rate Loans shall be in a principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof or, in each case, if less, the entire principal amount
thereof then outstanding. Each such notice shall specify the date and amount of such prepayment
and the Type(s) of Loans to be prepaid. The Administrative Agent will promptly notify each Lender
of its receipt of each such notice, and of the amount of such Lender’s ratable portion of such
prepayment (based on such Lender’s Applicable Percentage in respect of the relevant Facility. If
such notice is given by the Borrower, the Borrower shall make such prepayment and the payment
amount specified in such notice shall be due and payable on the date specified therein. Any
prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued interest thereon, together
with any additional amounts required pursuant to Section 3.05. Each prepayment of the
outstanding Term B Loans pursuant to this Section 2.04(a) shall be applied to the principal
repayment installments thereof on a pro rata basis, and each such prepayment shall be paid to the
Lenders in accordance with their respective Applicable Percentages in respect of each of the
relevant Facilities. In the event that the Borrower fails to specify the Loans to which any such
prepayment shall be applied, such prepayment shall be applied to the Term B Facility and to the
principal repayment installments thereof on a pro rata basis, and second to the Revolving Credit
Loans outstanding at such time on a pro rata basis. In the event that the Borrower fails to
specify the Type of Loan to which such prepayment shall be applied, prepayment shall be applied
first to repay outstanding Base Rate Loans to the fullest extent thereof, and second to repay
outstanding Eurodollar Rate Loans, each in a manner which minimizes to the extent possible any
amounts payable by the Borrower under Section 3.05.

          (b) Mandatory. (i) Within five Business Days after financial statements have been
delivered pursuant to Section 6.01(a) (commencing with the delivery of financial statements
for the Fiscal Year ended December 31, 2006) and the related Compliance Certificate has been
delivered pursuant to Section 6.02(b), if the Consolidated Senior Secured Leverage Ratio
for the most recently ended Fiscal Year is not lower than the Prepayment Maximum Senior

 

 

Secured Leverage Ratio, then the Borrower shall prepay an aggregate principal amount of Loans
equal to 50% of Excess Cash Flow for the fiscal year covered by such financial statements.

          (ii) If Holdings or any of its Subsidiaries (other than any of the Excluded Subsidiaries or any
Disqualified Subsidiary) Disposes of any property or assets (other than any Disposition of any
property or assets permitted by Section 7.05(a), (b), (c), (d), (f), (g), (h), (i)(x), (m),
(n), (o), (p), (q), (r), (s), (t), (u), (v) or (w) (but only (1) with respect to
Section 7.05(h), to the extent that Net Cash Proceeds received under such Section
7.05(h) do not exceed $10,000,000 in any Fiscal Year, (2) with respect to Section
7.05(c), to the extent of Net Cash Proceeds from (x) subleases, (y) leases of cellsite towers
and (z) other leases that do not exceed in the aggregate for this clause (z) $5,000,000 in
any fiscal year and (3) in the case of Section 7.05(w), except as otherwise set forth
therein)) which in the aggregate results in the realization by any Loan Party or such Subsidiary of
Net Cash Proceeds, the Borrower shall prepay an aggregate principal amount of Loans equal to 100%
of all Net Cash Proceeds received therefrom within two Business Days after receipt thereof by any
Loan Party or such Subsidiary; provided, however, that, with respect to any Net
Cash Proceeds realized (x) under a Disposition described in this Section 2.04(b)(ii) (other
than Net Cash Proceeds in excess of $20,000,000 realized under a disposition permitted under
Section 7.05(j)) or (y) proceeds of insurance and condemnation awards described in
Section 2.04(b)(v), at the option of the Borrower (as elected by the Borrower in writing to
the Administrative Agent no later than two (2) Business Days after the date of such Disposition or
the receipt of such insurance proceeds or condemnation awards), and so long as no Event of Default
shall have occurred and be continuing, the Borrower may retain all or any portion of such Net Cash
Proceeds for reinvestment in operating assets (including, without limitation, FCC Licenses) so long
as within twelve (12) months following receipt of such Net Cash Proceeds, (1) a definitive
agreement for the purchase of such assets with such proceeds shall have been entered into or, if
such proposed replacement asset is an FCC License to be acquired through an FCC auction, Holdings
or such Subsidiary or a Qualified Designated Entity partially owned, directly or indirectly, by
Holdings or any of its Subsidiaries shall have placed a bid with respect thereto in an FCC auction
(in each case, as certified by the Borrower in writing to the Administrative Agent), and (2) such
purchase shall have been consummated or such auction bid shall have been successful (as certified
by the Borrower in writing to the Administrative Agent); provided further that if,
at the end of such twelve (12)-month period, (x) the definitive agreement referred to in clause (1)
above has been executed and delivered by the parties thereto and the only conditions remaining to
consummation of the transactions contemplated by such agreement are customary conditions to closing
which the Borrower reasonably believes will be satisfied on a timely basis, including the receipt
of approval from the FCC for transfer of any relevant license, or (y) in the case of an FCC License
auction, the relevant auction has not concluded or the auction bid of Holdings, a Subsidiary or a
Qualified Designated Entity partially owned, directly or indirectly, by Holdings or a Subsidiary
has been successful but the relevant FCC License has not yet been transferred to Holdings, such
Subsidiary or such Qualified Designated Entity, then such twelve (12)-month period shall be
extended by up to an additional six (6) months; provided further, however,
that any Net Cash Proceeds not subject to such definitive agreement or FCC auction within such
twelve (12)-month period or so reinvested at the end of such twelve (12)-month period (as extended,
if applicable) shall be applied within two (2) Business Days to the prepayment of the Loans as set
forth in this Section 2.04.

 

 

          (iii) Upon the incurrence or issuance by Holdings or any of its Subsidiaries (other than a
Disqualified Subsidiary) of any Indebtedness (other than Indebtedness expressly permitted to be
incurred or issued pursuant to Section 7.02(a)(i) or (ii)), then the Borrower shall prepay
an aggregate principal amount of Loans equal to 100% (or, if at such time after giving effect to
such incurrence or issuance the Consolidated Senior Secured Leverage Ratio is less than or equal to
the Prepayment Maximum Senior Secured Leverage Ratio, 50%) of all Net Cash Proceeds received
therefrom within two Business Days after receipt thereof by the Borrower or such Subsidiary.

          (iv) Upon any Extraordinary Receipt received by or paid to or for the account of Holdings or
any of its Subsidiaries (other than a Disqualified Subsidiary), and not otherwise included in
clause (ii) or (iii) of this Section 2.04(b), the Borrower shall prepay an
aggregate principal amount of Loans equal to 100% of all Net Cash Proceeds received therefrom
within two Business Days after receipt thereof by Holdings or such Subsidiary.

          (v) If for any reason the Total Outstandings at any time exceed the Aggregate Commitments
then in effect, the Borrower shall immediately prepay Loans and/or Cash Collateralize the L/C
Obligations in an aggregate amount equal to such excess; provided, however, that
the Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this
Section 2.04(b)(v) unless after the prepayment in full of the Loans the Total Outstandings
exceed the Aggregate Commitments then in effect.

          (vi) Each prepayment of Loans pursuant to this Section 2.04(b) shall be applied,
first, to the principal repayment installments of the Term B Facility on a pro rata basis
and, thereafter, to the Revolving Credit Facility in the manner set forth in clause
(vii) of this Section 2.04(b). With respect to the Type of Loan to be prepaid, each
prepayment of Loan pursuant to this Section 2.04(b) shall be applied first to repay
outstanding Base Rate Loans to the fullest extent thereof, and second to repay outstanding
Eurodollar Rate Loans, each in a manner that minimizes to the extent possible any amounts payable
by the Borrower under Section 3.05.

          (vii) Prepayments of the Revolving Credit Facility made pursuant to clause (i), (ii),
(iii), (iv) or (v) of this Section 2.04(b), first, shall be applied ratably to
the outstanding Revolving Credit Loans and the Unreimbursed Obligations, second, shall be
applied to prepay Revolving Credit Loans outstanding at such time until all such Revolving Credit
Loans are paid in full and, third, shall be used to Cash Collateralize the remaining L/C
Obligations; and, in the case of prepayments of the Revolving Credit Facility required pursuant to
clause (i), (ii), (iii) or (iv) of this Section 2.04(b), the amount
remaining, if any, after the prepayment in full of all Revolving Credit Loans and Unreimbursed
Obligations outstanding at such time and the Cash Collateralization of the remaining L/C
Obligations in full (the sum of such prepayment amounts, cash collateralization amounts and
remaining amount being, collectively, the “Reduction Amount”) may be retained by the Borrower for
use in the ordinary course of its business, and the Revolving Credit Facility shall be
automatically and permanently reduced by the Reduction Amount as set forth in Section
2.05(b)(ii). Upon the drawing of any Letter of Credit that has been Cash Collateralized, the
funds held as Cash Collateral shall be applied (without any further action by or notice to or from
the Borrower or any other Loan Party) to reimburse the L/C Issuer or the Revolving Credit Lenders,
as applicable.

 

 

          2.05 Termination or Reduction of Commitments. (a) Optional. The Borrower
may, upon notice to the Administrative Agent (which may be given by telephone if confirmed promptly
thereafter in writing), terminate the unused portions of the Letter of Credit Sublimit or the
unused Revolving Credit Commitments, or from time to time permanently reduce the unused portions of
the Letter of Credit Sublimit or the unused Revolving Credit Commitments, in each case without
premium or penalty; provided that (i) any such notice shall be received by the
Administrative Agent not later than 12:00 p.m. three Business Days prior to the date of termination
or reduction, (ii) any such partial reduction shall be in an aggregate amount of $5,000,000 or any
whole multiple of $1,000,000 in excess thereof and (iii) the Borrower shall not terminate or reduce
the unused portions of the Letter of Credit Sublimit or the unused Revolving Credit Commitments if,
after giving effect thereto and to any concurrent prepayments hereunder, the Total Revolving Credit
Outstandings would exceed the Revolving Credit Facility.

          (b) Mandatory. (i) Subject to Section 2.13, the aggregate Term B Commitments
shall be automatically and permanently reduced to zero immediately after the Term B Borrowing.

          (ii) The Revolving Credit Facility shall be automatically and permanently reduced on each date
on which the prepayment of Revolving Credit Loans outstanding thereunder is required to be made
pursuant to Section 2.04(b)(i), (ii), (iii) or (iv) by an amount equal to the
applicable Reduction Amount.

          (iii) If after giving effect to any reduction or termination of unused Revolving Credit
Commitments under this Section 2.05, the Letter of Credit Sublimit exceeds the Revolving
Credit Facility at such time, the Letter of Credit Sublimit shall be automatically reduced by the
amount of such excess.

          (c) Application of Commitment Reductions; Payment of Fees. The Administrative Agent
will promptly notify the Lenders of any termination or reduction of unused portions of the Letter
of Credit Sublimit or the unused Revolving Credit Commitment under this Section 2.05. Upon
any reduction of the unused Revolving Credit Commitments, the Revolving Credit Commitment of each
Revolving Credit Lender shall be reduced by such Lender’s Applicable Revolving Credit Percentage of
such reduction amount. All fees accrued as of the effective date of any termination of the
Commitments shall, insofar as they relate to such terminated Commitments, be paid on the effective
date of such termination.

 

 

          2.06 Repayment of Loans. (a) Term B Loans. The Borrower shall repay to the
Administrative Agent for the ratable account of the Term B Lenders the aggregate principal amount
of all Term B Loans outstanding on the following dates in the respective amounts set forth opposite
such dates (which amounts shall be reduced as a result of the application of prepayments in
accordance with the order of priority set forth in Section 2.05):

	 	 	 	 	 
	Date	 	Amount	 
	 
	September 30, 2006
	 	$	2,250,000	 
	December 31, 2006
	 	$	2,250,000	 
	March 31, 2007
	 	$	2,250,000	 
	June 30, 2007
	 	$	2,250,000	 
	September 30, 2007
	 	$	2,250,000	 
	December 31, 2007
	 	$	2,250,000	 
	March 31, 2008
	 	$	2,250,000	 
	June 30, 2008
	 	$	2,250,000	 
	September 30, 2008
	 	$	2,250,000	 
	December 31, 2008
	 	$	2,250,000	 
	March 31, 2009
	 	$	2,250,000	 
	June 30, 2009
	 	$	2,250,000	 
	September 30, 2009
	 	$	2,250,000	 
	December 31, 2009
	 	$	2,250,000	 
	March 31, 2010
	 	$	2,250,000	 
	June 30, 2010
	 	$	2,250,000	 
	September 30, 2010
	 	$	2,250,000	 
	December 31, 2010
	 	$	2,250,000	 
	March 31, 2011
	 	$	2,250,000	 
	June 30, 2011
	 	$	2,250,000	 
	September 30, 2011
	 	$	2,250,000	 
	December 31, 2011
	 	$	2,250,000	 
	March 31, 2012
	 	$	2,250,000	 
	June 30, 2012
	 	$	2,250,000	 
	September 30, 2012
	 	$	211,500,000	 
	December 31, 2012
	 	$	211,500,000	 
	March 31, 2013
	 	$	211,500,000	 
	Maturity Date
	 	$	211,500,000	 

provided, however, that the final principal repayment installment of the Term B
Loans shall be repaid on the Maturity Date for the Term B Facility and in any event shall be in an
amount equal to the aggregate principal amount of all Term B Loans outstanding on such date.

          (b) Revolving Credit Loans. The Borrower shall repay to the Administrative Agent for
the ratable account of the Revolving Credit Lenders on the Maturity Date for the Revolving Credit
Facility the aggregate principal amount of all Revolving Credit Loans outstanding on such date.

 

 

          2.07 Interest. (a) Subject to the provisions of Section 2.07(b), (i) each
Eurodollar Rate Loan under a Facility shall bear interest on the outstanding principal amount
thereof for each Interest Period at a rate per annum equal to the Eurodollar Rate for such Interest
Period plus the Applicable Rate for such Facility and (ii) each Base Rate Loan under a
Facility shall bear interest on the outstanding principal amount thereof from the applicable
borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate for such
Facility.

          (b) (i) If any amount of principal of any Loan is not paid when due (without regard to any
applicable grace periods), whether at stated maturity, by acceleration or otherwise, such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

          (ii) If any amount (other than principal of any Loan) payable by the Borrower under any Loan
Document is not paid when due (without regard to any applicable grace periods), whether at stated
maturity, by acceleration or otherwise, then upon the request of the Required Lenders such amount
shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the
Default Rate to the fullest extent permitted by applicable Laws.

          (iii) Upon the request of the Required Term B Lenders, while any Event of Default in respect of
the Term B Facility exists and is continuing, and upon the request of the Required Revolving
Lenders while any Event of Default in respect of the Revolving Credit Facility exists and is
continuing, the Borrower shall pay interest on the principal amount of all outstanding Term B Loan
or Revolving Credit Loan Obligations hereunder, as applicable, at a fluctuating interest rate per
annum at all times equal to the Default Rate to the fullest extent permitted by applicable Laws.

          (iv) Accrued and unpaid interest on past due amounts (including interest on past due
interest) shall be due and payable upon demand.

          (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment Date
applicable thereto and at such other times as may be specified herein. Interest hereunder shall be
due and payable in accordance with the terms hereof before and after judgment, and before and after
the commencement of any proceeding under any Debtor Relief Law.

          2.08 Fees. In addition to certain fees described in Sections 2.03(i) and
(j):

     (a) Commitment Fee. The Borrower shall pay to the Administrative Agent for the
account of each Revolving Credit Lender in accordance with its Applicable Revolving Credit
Percentage, a commitment fee equal to the Applicable Fee Rate times the actual daily
amount by which the aggregate Revolving Credit Commitments exceed the sum of (A) the
Outstanding Amount of Revolving Credit Loans and (B) the Outstanding Amount of L/C
Obligations; provided, however, that any commitment fee accrued with respect
to any of the Commitments of a Defaulting Lender during the period prior to the time such
Lender became a Defaulting Lender and unpaid at such time shall not be payable by the
Borrower so long as such Lender shall be a Defaulting Lender except to the extent that such
commitment fee shall otherwise have been due and payable

 

 

by the Borrower prior to such time; and provided further that no
commitment fee shall accrue on any of the Commitments of a Defaulting Lender so long as such
Lender shall be a Defaulting Lender. The commitment fee shall accrue at all times during
the Availability Period, including at any time during which one or more of the conditions in
Article IV is not met, and shall be due and payable quarterly in arrears on the last
Business Day of each March, June, September and December, commencing with the first such
date to occur after the Closing Date, and on the Maturity Date for the Revolving Credit
Facility. The commitment fee shall be calculated quarterly in arrears, and if there is any
change in the Applicable Fee Rate during any quarter, the actual daily amount shall be
computed and multiplied by the Applicable Fee Rate separately for each period during such
quarter that such Applicable Fee Rate was in effect.

     (b) Other Fees. (i) The Borrower shall pay to the Joint Lead Arrangers and
the Administrative Agent for their own respective accounts fees in the amounts and at the
times specified in the Fee Letters. Such fees shall be fully earned when paid and shall not
be refundable for any reason whatsoever.

     (ii) The Borrower shall pay to the Administrative Agent such fees as shall have been
separately agreed upon in writing in the amounts and at the times so specified. Such fees
shall be fully earned when paid and shall not be refundable for any reason whatsoever.

          2.09 Computation of Interest and Fees. All computations of interest for Base Rate
Loans when the Base Rate is determined by Bank of America’s “prime rate” shall be made on the basis
of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations
of fees and interest shall be made on the basis of a 360-day year and actual days elapsed (which
results in more fees or interest, as applicable, being paid than if computed on the basis of a
365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall
not accrue on a Loan, or any portion thereof, for the day on which the Loan or such portion is
paid, provided that any Loan that is repaid on the same day on which it is made shall,
subject to Section 2.11(a), bear interest for one day. Each determination by the
Administrative Agent of an interest rate or fee hereunder shall be conclusive and binding for all
purposes, absent manifest error.

          2.10 Evidence of Debt. (a) The Credit Extensions made by each Lender shall be
evidenced by one or more accounts or records maintained by such Lender and by the Administrative
Agent in the ordinary course of business. The accounts or records maintained by the Administrative
Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit
Extensions made by the Lenders to the Borrower and the interest and payments thereon. Any failure
to so record or any error in doing so shall not, however, limit or otherwise affect the obligation
of the Borrower hereunder to pay any amount owing with respect to the Obligations. In the event of
any conflict between the accounts and records maintained by any Lender and the accounts and records
of the Administrative Agent in respect of such matters, the accounts and records of the
Administrative Agent (set forth in the Register) shall control in the absence of manifest error.
Upon the request of any Lender made through the Administrative Agent, the Borrower shall execute
and deliver to such Lender (through the Administrative Agent) a Note (but only to the extent that
the Loans evidenced by such Note are not already

 

 

evidenced by an existing Note), which shall evidence such Lender’s Loans in addition to such
accounts or records. Each Lender may attach schedules to its Note and endorse thereon the date,
Type (if applicable), amount and maturity of its Loans and payments with respect thereto.

          (b) In addition to the accounts and records referred to in Section 2.10(a), each
Lender and the Administrative Agent shall maintain in accordance with its usual practice accounts
or records evidencing the purchases and sales by such Lender of participations in Letters of
Credit. In the event of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of such matters, the
accounts and records of the Administrative Agent shall control in the absence of manifest error.

          2.11 Payments Generally; Administrative Agent’s Clawback. (a) General. All
payments to be made by the Borrower shall be made without condition or deduction for any
counterclaim, defense, recoupment or setoff. Except as otherwise expressly provided herein, all
payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of
the respective Lenders to which such payment is owed, at the Administrative Agent’s Office in
Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein.
The Administrative Agent will promptly distribute to each Lender its Applicable Percentage in
respect of the relevant Facility (or other applicable share as provided herein) of such payment in
like funds as received by wire transfer to such Lender’s Lending Office. All payments received by
the Administrative Agent after 2:00 p.m. shall be deemed received on the next succeeding Business
Day and any applicable interest or fee shall continue to accrue. If any payment to be made by the
Borrower shall come due on a day other than a Business Day, payment shall be made on the next
following Business Day, and such extension of time shall be reflected on computing interest or
fees, as the case may be.

          (b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any
Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share
of such Borrowing, the Administrative Agent may assume that such Lender has made such share
available on such date in accordance with Section 2.02 and may, in reliance upon such
assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has
not in fact made its share of the applicable Borrowing available to the Administrative Agent, then
the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith
on demand such corresponding amount in immediately available funds with interest thereon, for each
day from and including the date such amount is made available to the Borrower to but excluding the
date of payment to the Administrative Agent, at (A) in the case of a payment to be made by such
Lender, the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation and (B) in the case of a payment
to be made by the Borrower, the interest rate applicable to Base Rate Loans. If the Borrower and
such Lender shall pay such interest to the Administrative Agent for the same or an overlapping
period, the Administrative Agent shall promptly remit to the Borrower the amount of such interest
paid by the Borrower for such period. If such Lender pays its share of the applicable Borrowing to
the Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included in
such Borrowing. Any payment by the Borrower shall be without prejudice to any claim the Borrower
may have

 

 

against a Lender that shall have failed to make such payment to the Administrative Agent.
Nothing in this Section 2.11(b) shall be deemed to relieve any Lender of its obligation to
fulfill its Commitments hereunder or to prejudice any rights that Holdings or its Subsidiaries may
have against any Lender or L/C Issuer as a result of any default by such Lender or L/C Issuer
hereunder.

          (ii) Payments by Borrower; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from the Borrower prior to the date on which any
payment is due to the Administrative Agent for the account of the Lenders or any L/C Issuer
hereunder that the Borrower will not make such payment, the Administrative Agent may assume that
the Borrower has made such payment on such date in accordance herewith and may, in reliance upon
such assumption, distribute to the Appropriate Lenders or the applicable L/C Issuer, as the case
may be, the amount due. In such event, if the Borrower has not in fact made such payment, then
each of the Appropriate Lenders or the applicable L/C Issuer, as the case may be, severally agrees
to repay to the Administrative Agent forthwith on demand the amount so distributed to such Lender
or such L/C Issuer, in immediately available funds with interest thereon, for each day from and
including the date such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation.

          A notice of the Administrative Agent to any Lender or the Borrower with respect to any amount
owing under this subsection (b) shall be conclusive, absent manifest error.

          (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to the
Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing
provisions of this Article II, and such funds are not made available to the Borrower by the
Administrative Agent because the conditions to the applicable Credit Extension set forth in
Article IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from such Lender) to such
Lender, without interest.

          (d) Obligations of Lenders Several. The obligations of the Lenders hereunder to make
Loans and to fund participations in Letters of Credit and to make payments pursuant to Section
10.04(c) are several and not joint. The failure of any Lender to make any Loan or to fund any
such participation or make any payment under Section 10.04(c) on any date required
hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date,
and no Lender shall be responsible for the failure of any other Lender to so make its Loan, to
purchase its participation or make its payment under Section 10.04(c).

          (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to obtain
the funds for any Loan in any particular place or manner or to constitute a representation by any
Lender that it has obtained or will obtain the funds for any Loan in any particular place or
manner.

          (f) Insufficient Payment. Whenever any payment received by the Administrative Agent
under this Agreement or any of the other Loan Documents is insufficient

 

 

to pay in full all amounts due and payable to the Administrative Agent and the Lenders under
or in respect of this Agreement and the other Loan Documents on any date, such payment shall be
distributed by the Administrative Agent and applied by the Administrative Agent and the Lenders in
the order of priority set forth in Section 8.03. If the Administrative Agent receives
funds for application to the Obligations of the Loan Parties under or in respect of the Loan
Documents under circumstances for which the Loan Documents do not specify the manner in which such
funds are to be applied, the Administrative Agent may, but shall not be obligated to, elect to
distribute such funds to each of the Lenders in accordance with such Lender’s Applicable Percentage
of the sum of (A) the Outstanding Amount of all Loans outstanding at such time and (b) the
Outstanding Amount of all L/C Obligations outstanding at such time, in repayment or prepayment of
such of the outstanding Loans or other Obligations then owing to such Lender.

          2.12 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of
setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on
any of the Loans made by it, or the participations in L/C Obligations held by it resulting in such
Lender’s receiving payment of a proportion of the aggregate amount of such Loans or participations
and accrued interest thereon greater than its pro rata share thereof of the applicable Facility as
provided herein, then the Lender receiving such greater proportion shall (a) notify the
Administrative Agent of such fact, and (b) purchase (for cash at face value) participations in the
Loans and subparticipations in L/C Obligations of the other Lenders, or make such other adjustments
as shall be equitable, so that the benefit of all such payments shall be shared by the Lenders
ratably in accordance with the aggregate amount of principal of and accrued interest on their
respective Loans and other amounts owing them, provided that:

     (i) if any such participations or subparticipations are purchased and all or any
portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent of such
recovery, without interest; and

     (ii) the provisions of this Section shall not be construed to apply to (x) any payment
made by the Borrower pursuant to and in accordance with the express terms of this Agreement
or (y) any payment obtained by a Lender as consideration for the assignment of or sale of a
participation in any of its Loans or subparticipations in L/C Obligations to any assignee or
participant, other than to the Borrower or any Subsidiary thereof (as to which the
provisions of this Section shall apply).

          Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

          2.13 Increase in Commitments. (a) Request for Increase. Provided there
exists no Default, upon notice to the Administrative Agent (which shall promptly notify the
Lenders), the Borrower may from time to time, request an increase in the Term B or Revolving Credit
Commitments by an amount (for all such requests) not exceeding $400,000,000; provided that
(i)

 

 

up to three such requests for increases which are in respect of the Revolving Credit
Facility may be in minimum amounts of $10,000,000 each and (ii) any other such request for an
increase shall be in a minimum amount of $50,000,000. At the time of sending such notice, the
Borrower (in consultation with the Administrative Agent) shall specify the time period within which
each Lender is requested to respond (which shall in no event be less than ten Business Days from
the date of delivery of such notice to the Lenders).

          (b) Lender Elections to Increase. Each Lender shall notify the Administrative Agent
within such time period whether or not it agrees to increase its Term B or Revolving Credit
Commitment and, if so, whether by an amount equal to, greater than, or less than its Applicable
Percentage of such requested increase. Any Lender not responding within such time period shall be
deemed to have declined to increase its Commitment.

          (c) Notification by Administrative Agent; Additional Lenders. The Administrative
Agent shall notify the Borrower and each Lender of the Lenders’ responses to each request made
hereunder. To achieve the full amount of a requested increase, and subject to the approval of the
Administrative Agent and, in the case of any increase in the Revolving Credit Commitments, the L/C
Issuer (which approvals shall not be unreasonably withheld), the Borrower may also invite
additional Eligible Assignees to become Lenders pursuant to a joinder agreement in form and
substance satisfactory to the Administrative Agent and its counsel.

          (d) Effective Date and Allocations; Amortization; Technical Amendments. If the Term B
or Revolving Credit Commitments are increased in accordance with this Section, the Administrative
Agent and the Borrower shall determine the effective date (the “Increase Effective Date”) and the
final allocation of such increase. The Administrative Agent shall promptly notify the Borrower and
the Lenders of the final allocation of such increase (each such allocated increase as to which the
Increase Effective Date shall have occurred, an “Incremental Facility”) and the Increase Effective
Date. Loans in respect of any Incremental Facility consisting of Term B Commitments shall amortize
94% in the final year prior to the Maturity Date and in equal quarterly installments prior thereto,
commencing on the last day of the fiscal quarter in which such loans are made. In connection with
any increase, this Agreement may be amended in a writing executed and delivered by the Borrower and
the Administrative Agent to reflect any technical changes necessary to give effect to such increase
in accordance with its terms as set forth herein, which may include the addition of such increase
as a separate facility and the inclusion of any such separate facility in the provisions relating
to mandatory prepayments set forth in Section 2.04(b) and to sharing set forth in
Section 2.12 in a manner consistent with the treatment hereunder of the corresponding
existing facility; provided, that no such separate facility
shall have a maturity date earlier than the Maturity Date in respect
of the Term B facility or shall amortize in amounts greater than
1% per annum prior to the final year before the Maturity Date in
respect of the Term B Facility.

          (e) Conditions to Effectiveness of Increase. As a condition precedent to such
increase, the Borrower shall deliver to the Administrative Agent a certificate of each Loan Party
dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a
Responsible Officer of such Loan Party (i) certifying and attaching the resolutions adopted by such
Loan Party approving or consenting to such increase, and (ii) in the case of each Holdings and the
Borrower, certifying that, before and after giving effect to such increase, (A) the representations
and warranties contained in Article V and the other Loan Documents are true and correct in
all material respects on and as of the Increase Effective Date, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they are

 

 

true and correct in all material respects as of such earlier date, and except that for
purposes of this Section 2.13, the representations and warranties contained in subsections
(a) and (b) of Section 5.05 shall be deemed to refer to the most recent statements
furnished pursuant to subsections (a) and (b), respectively, of Section 6.01 and (B) no
Default exists. The Borrower shall prepay any Revolving Credit Loans, as applicable, outstanding
on the Increase Effective Date in respect of any increase in the Revolving Credit Commitments (and
pay any additional amounts required pursuant to Section 3.05) to the extent necessary to
keep the outstanding Revolving Credit Loans ratable with any revised Applicable Percentages arising
from any nonratable increase in the Revolving Credit Commitments under this Section.

          (f) Conflicting Provisions. This Section shall supersede any provisions in
Sections 2.12 or 10.01 to the contrary.

          (g) Pricing Parity. In the event that the Applicable Rate in respect of Loans made
under any Incremental Facility is more than 0.50% per annum higher than the Applicable Rate then in
effect for (i) if such Incremental Facility consists of Term B Commitments, Term B Loans or (ii) if
such Incremental Facility consists of Revolving Credit Commitments, Revolving Credit Loans, then
the Applicable Rate in respect of Loans under the Term B Facility or the Revolving Credit Facility,
as applicable, immediately prior to the Increase Effective Date for the applicable Incremental
Facility shall be automatically increased to a rate equal to the Applicable Rate in respect of such
Incremental Facility.

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

          3.01 Taxes. (a) Payments Free of Taxes. Any and all payments by or on
account of any obligation of the Borrower hereunder or under any other Loan Document shall be made
free and clear of and without reduction or withholding for any Indemnified Taxes or Other Taxes,
provided that if the Borrower shall be required by applicable law to deduct any Indemnified
Taxes (including any Other Taxes) from such payments, then (i) the sum payable shall be increased
as necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section) the Administrative Agent, Lender or L/C Issuer, as the
case may be, receives an amount equal to the sum it would have received had no such deductions been
made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall timely pay the full
amount deducted to the relevant Governmental Authority in accordance with applicable law.

          (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
subsection (a) above, the Borrower shall timely pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

          (c) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent, each Lender and the L/C Issuer, within 10 days after demand therefor, for the full amount of
any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or
asserted on or attributable to amounts payable under this Section) paid by the
Administrative Agent, such Lender or the L/C Issuer, as the case may be, and any penalties,
interest and reasonable expenses arising therefrom or with respect thereto, whether or not such

 

 

Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or liability delivered to
the Borrower by a Lender or the L/C Issuer (with a copy to the Administrative Agent), or by the
Administrative Agent on its own behalf or on behalf of a Lender or the L/C Issuer, shall be
conclusive absent manifest error.

          (d) Evidence of Payments. Within 30 days after the date of any payment of Indemnified
Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the information return reporting such payment or other
evidence of such payment reasonably satisfactory to the Administrative Agent.

          (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption from or
reduction of withholding tax under the law of the jurisdiction in which the Borrower is resident
for tax purposes, or any treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any other Loan Document shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law or reasonably requested by
the Borrower or the Administrative Agent, such properly completed and executed documentation
prescribed by applicable law as will permit such payments to be made without withholding or at a
reduced rate of withholding. In addition, any Lender, if requested by the Borrower or the
Administrative Agent, shall deliver such other documentation prescribed by applicable law or
reasonably requested by the Borrower or the Administrative Agent as will enable the Borrower or the
Administrative Agent to determine whether or not such Lender is subject to backup withholding or
information reporting requirements.

          Without limiting the generality of the foregoing, if the Borrower is resident for tax purposes
in the United States, any Foreign Lender shall deliver to the Borrower and the Administrative Agent
(in such number of copies as shall be requested by the recipient) on or prior to the date on which
such Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon
the request of the Borrower or the Administrative Agent, but only if such Foreign Lender is legally
entitled to do so), whichever of the following is applicable:

     (i) duly completed copies of Internal Revenue Service Form W-8BEN or any successor form
claiming eligibility for benefits of an income tax treaty to which the United States is a
party,

     (ii) duly completed copies of Internal Revenue Service Form W-8ECI or any successor
form certifying that the income receivable pursuant to this Agreement is effectively
connected with the conduct of a trade or business in the United States,

     (iii) in the case of a Foreign Lender claiming the benefits of the exemption for
portfolio interest under section 881(c) of the Code, (A) a certificate to the effect that
such Foreign Lender is not (1) a “bank” within the meaning of section 881(c)(3)(A) of the
Code, (2) a “10 percent shareholder” of the Borrower within the meaning of section
881(c)(3)(B) of the Code, or (3) a “controlled foreign corporation” described in
section 881(c)(3)(C) of the Code and (B) duly completed copies of Internal Revenue Service

 

 

Form W-8BEN (or any successor form) certifying that the Foreign Lender is not a United
States Person, or

     (iv) any other form including Internal Revenue Service Form W-8IMY as applicable
prescribed by applicable law as a basis for claiming exemption from or a reduction in United
States Federal withholding tax duly completed together with such supplementary documentation
as may be prescribed by applicable law to permit the Borrower to determine the withholding
or deduction required to be made.

          In addition, in each of the foregoing circumstances, each Foreign Lender shall deliver such
forms promptly upon the expiration or invalidity of any form previously delivered by such Foreign
Lender upon request of the Borrower or Administrative Agent. Each Foreign Lender shall promptly
notify the Borrower and Administrative Agent at any time it determines that it no longer satisfies
the legal requirements to provide any previously delivered form or certificate to the Borrower (or
any other form of certification adopted by the U.S. or other taxing authorities for such purpose).

Each Lender that is a United States person agrees deliver to the Borrower and the Administrative
Agent (in such number of copies as shall be requested by the recipient) on or prior to the date on
which such Lender becomes a Lender under this Agreement (and from time to time thereafter upon the
request of the Borrower or the Administrative Agent, but only if such Lender is legally entitled to
do so), duly completed copies of Internal Revenue Service Form W-9 (or successor form) establishing
that the Lender is not subject to U.S. backup withholding tax to the extent reasonably requested by
the Borrower or Administrative Agent to evidence an exemption from U.S. backup withholding tax.

          (f) Treatment of Certain Refunds. If the Administrative Agent, any Lender or the L/C
Issuer determines, in its sole discretion, that it has received a refund or credit (in lieu of such
refund other than a foreign tax credit) of any Taxes or Other Taxes as to which it has been
indemnified by the Borrower or with respect to which the Borrower has paid additional amounts
pursuant to this Section, it shall pay to the Borrower an amount equal to such refund (but only to
the extent of indemnity payments made, or additional amounts paid, by the Borrower under this
Section with respect to the Taxes or Other Taxes giving rise to such refund), net of all reasonable
out-of-pocket expenses of the Administrative Agent, such Lender or the L/C Issuer, as the case may
be, and without interest (other than any interest paid by the relevant Governmental Authority with
respect to such refund), provided that the Borrower, upon the request of the Administrative
Agent, such Lender or the L/C Issuer, agrees to repay the amount paid over to the Borrower (plus
any penalties, interest or other charges imposed by the relevant Governmental Authority) to the
Administrative Agent, such Lender or the L/C Issuer in the event the Administrative Agent, such
Lender or the L/C Issuer is required to repay such refund to such Governmental Authority. This
subsection shall not be construed to require the Administrative Agent, any Lender or the L/C Issuer
to make available its tax returns (or any other information relating to its taxes that it deems
confidential) to the Borrower or any other Person.

          3.02 Illegality . If any Lender determines that any Law or any guideline, directed duty or request of or any
agreement with any Governmental Authority (whether or not having the force of law) has made it
unlawful, or that any Governmental Authority has asserted

 

 

that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or to determine or
charge interest rates based upon the Eurodollar Rate, or any Governmental Authority has imposed
material restrictions on the authority of such Lender to purchase or sell, or to take deposits of,
Dollars in the London interbank market, then, on notice thereof by such Lender to the Borrower
through the Administrative Agent, any obligation of such Lender to make or continue Eurodollar Rate
Loans or to convert Base Rate Loans to Eurodollar Rate Loans shall be suspended until such Lender
notifies the Administrative Agent and the Borrower that the circumstances giving rise to such
determination no longer exist. Upon receipt of such notice, the Borrower shall, upon demand from
such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all
Eurodollar Rate Loans of such Lender to Base Rate Loans, either on the last day of the Interest
Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to
such day, or immediately, if such Lender may not lawfully continue to maintain such Eurodollar Rate
Loans. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the
amount so prepaid or converted.

          3.03 Inability to Determine Rates. If the Required Lenders determine that for any
reason in connection with any request for a Eurodollar Rate Loan or a conversion to or continuation
thereof that (a) Dollar deposits are not being offered to banks in the London interbank eurodollar
market for the applicable amount and Interest Period of such Eurodollar Rate Loan, (b) adequate and
reasonable means do not exist for determining the LIBO Rate for any requested Interest Period with
respect to a proposed Eurodollar Rate Loan, or (c) the LIBO Rate for any requested Interest Period
with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to
such Lenders of funding such Loan, the Administrative Agent will promptly so notify the Borrower
and each Lender. Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate
Loans shall be suspended until the Administrative Agent (upon the instruction of the Required
Lenders) revokes such notice. Upon receipt of such notice, the Borrower may revoke, without any
penalty or payment, any pending request for a Borrowing of, conversion to or continuation of
Eurodollar Rate Loans or, failing that, will be deemed to have converted such request into a
request for a Committed Borrowing of Base Rate Loans in the amount specified therein.

          3.04 Increased Costs; Reserves on Eurodollar Rate Loans. (a) Increased Costs
Generally. If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit, compulsory loan,
insurance charge or similar requirement against assets of, deposits with or for the account
of, or credit extended or participated in by, any Lender (except any reserve requirement
reflected in the Eurodollar Rate) or any L/C Issuer;

     (ii) subject any Lender or any L/C Issuer to any tax of any kind whatsoever with
respect to this Agreement, any Letter of Credit, any participation in a Letter of
Credit or any Eurodollar Rate Loan made by it, or change the basis of taxation of
payments to such Lender or any L/C Issuer in respect thereof (except for Indemnified Taxes
or Other Taxes covered by Section 3.01 and the imposition of, or any change in the
rate of, any Excluded Tax payable by such Lender or such L/C Issuer); or

 

 

     (iii) impose on any Lender or any L/C Issuer or the London interbank market any other
condition, cost or expense affecting this Agreement or Eurodollar Rate Loans made by such
Lender or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Rate Loan (or of maintaining its obligation to make any such Loan), or
to increase the cost to such Lender or any L/C Issuer of participating in, issuing or maintaining
any Letter of Credit (or of maintaining its obligation to participate in or to issue any Letter of
Credit), or to reduce the amount of any sum received or receivable by such Lender or the L/C Issuer
hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or
such L/C Issuer and receipt of a certificate for reimbursement pursuant to Section 3.04(c),
the Borrower will pay to such Lender or such L/C Issuer, as the case may be, such additional amount
or amounts as will compensate such Lender or such L/C Issuer, as the case may be, for such
additional costs incurred or reduction suffered.

          (b) Capital Requirements. If any Lender or any L/C Issuer determines that any Change
in Law affecting such Lender or such L/C Issuer or any Lending Office of such Lender or such
Lender’s or L/C Issuer’s holding company, if any, regarding capital requirements has or would have
the effect of reducing the rate of return on such Lender’s or L/C Issuer’s capital or on the
capital of such Lender’s or L/C Issuer’s holding company, if any, as a consequence of this
Agreement, the Commitments of such Lender or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by such L/C Issuer, to a level below
that which such Lender or such L/C Issuer or such Lender’s or such L/C Issuer’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s or such L/C
Issuer’s policies and the policies of such Lender’s or such L/C Issuer’s holding company with
respect to capital adequacy), then from time to time upon request by such Lender or LC Issuer and
receipt of a certificate for reimbursement pursuant to Section 3.04(c) the Borrower will
pay to such Lender or such L/C Issuer, as the case may be, such additional amount or amounts as
will compensate such Lender or such L/C Issuer or such Lender’s or such L/C Issuer’s holding
company for any such reduction suffered.

          (c) Certificates for Reimbursement. A certificate of a Lender or such L/C Issuer
setting forth in reasonable detail the amount or amounts necessary to compensate such Lender or
such L/C Issuer or its holding company, as the case may be, as specified in subsection (a)
or (b) of this Section and the basis for calculating such amounts (using any reasonable
averaging or attribution methods) and delivered to the Borrower shall be conclusive absent manifest
error. The Borrower shall pay such Lender or such L/C Issuer, as the case may be, the amount shown
as due on any such certificate within 10 days after receipt thereof.

          (d) Delay in Requests. Failure or delay on the part of any Lender or any L/C Issuer
to demand compensation pursuant to the foregoing provisions of this Section shall not constitute a
waiver of such Lender’s or such L/C Issuer’s right to demand such compensation, provided that the Borrower shall not be required to compensate a Lender or such L/C
Issuer pursuant to the foregoing provisions of this Section for any increased costs incurred or
reductions suffered more than six (6) months prior to the date that such Lender or such L/C Issuer,
as the case may be, notifies the Borrower of the Change in Law giving rise to such increased costs
or reductions and of such Lender’s or such L/C Issuer’s intention to claim compensation therefor

 

 

(except that, if the Change in Law giving rise to such increased costs or reductions is
retroactive, then the six (6)-month period referred to above shall be extended to include the
period of retroactive effect thereof).

          3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the
Administrative Agent) from time to time, the Borrower shall promptly compensate such Lender for and
hold such Lender harmless from any loss, cost or expense incurred by it as a result of:

     (a) any continuation, conversion, payment or prepayment of any Eurodollar Rate Loan on
a day other than the last day of the Interest Period for such Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise);

     (b) any failure by the Borrower (for a reason other than the failure of such Lender to
make a Loan) to prepay, borrow, continue or convert any Eurodollar Rate Loan on the date or
in the amount notified by the Borrower; or

     (c) any assignment of a Eurodollar Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Borrower pursuant to Section
10.13;

including any loss or expense arising from the liquidation or reemployment of funds obtained by it
to maintain such Loan or from fees payable to terminate the deposits from which such funds were
obtained. The Borrower shall also pay any customary administrative fees charged to similarly
situated borrowers by such Lender in connection with the foregoing.

          For purposes of calculating amounts payable by the Borrower to the Lenders under this
Section 3.05, each Lender shall be deemed to have funded each Eurodollar Rate Loan made by
it at the LIBO Rate used in determining the Eurodollar Rate for such Loan by a matching deposit or
other borrowing in the London interbank eurodollar market for a comparable amount and for a
comparable period, whether or not such Eurodollar Rate Loan was in fact so funded.

          3.06 Mitigation Obligations; Replacement of Lenders. (a) Designation of a
Different Lending Office. If any Lender requests compensation under Section 3.04, or
the Borrower is required to pay any additional amount to any Lender or any Governmental Authority
for the account of any Lender pursuant to Section 3.01, or if any Lender gives a notice
pursuant to Section 3.02, then such Lender shall use reasonable efforts to designate a
different Lending Office for funding or booking its Loans hereunder or to assign its rights and
obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of
such Lender, such designation or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01 or 3.04, as the case may be, in the future,
or eliminate the need for the notice pursuant to Section 3.02, as applicable, and (ii) in each
case, would not subject such Lender to any unreimbursed cost or expense and would not otherwise be
disadvantageous to such Lender. The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such designation or assignment.

 

 

          (b) Replacement of Lenders. If any Lender requests compensation under Section
3.04, or if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 3.01, the Borrower
may replace such Lender in accordance with Section 10.13.

          3.07 Survival. All of the Borrower’s obligations under this Article III shall
survive termination of the Aggregate Commitments and repayment of all other Obligations hereunder.

ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

          4.01 Conditions of Initial Credit Extension. The obligation of the L/C Issuer and
each Lender to make its initial Credit Extension hereunder is subject to satisfaction or waiver in
accordance with Section 10.01 of the following conditions precedent:

     (a) The Administrative Agent’s receipt of the following, each of which shall be
originals or telecopies (followed promptly by originals) unless otherwise specified, each
properly executed by a Responsible Officer of the signing Loan Party, each dated the Closing
Date (or, in the case of certificates of governmental officials, a recent date before the
Closing Date) and each in form and substance satisfactory to the Administrative Agent and
each of the Lenders:

     (i) executed counterparts of this Agreement and the Guaranty, sufficient in
number for distribution to the Administrative Agent, each Lender and the Borrower;

     (ii) a Note executed by the Borrower in favor of each Lender requesting a Note;

     (iii) an amended and restated security agreement, in substantially the form of
Exhibit F (together with each other security agreement and security
agreement supplement delivered pursuant to Section 6.12, in each case as
amended, the “Security Agreement”), duly executed by each Loan Party, together with:

     (A) certificates representing the Pledged Equity referred to therein
accompanied by undated stock powers executed in blank and instruments
evidencing the Pledged Debt indorsed in blank,

     (B) proper financing statements, duly prepared for filing under the
Uniform Commercial Code of all jurisdictions that the Administrative Agent
may reasonably deem necessary or desirable in order to perfect and protect
the first priority liens and security interests created under the Security
Agreement, covering the Collateral described in the Security Agreement,

 

 

     (C) completed requests for information, dated on or before the date of
the initial Credit Extension, listing the financing statements referred to
in clause (B) above and all other effective financing statements
filed in the jurisdictions referred to in clause (B) above that name
any Loan Party as debtor, together with copies of such other financing
statements,

     (D) reasonable evidence of the completion of all other actions,
recordings and filings of or with respect to the Security Agreement that the
Administrative Agent may reasonably deem necessary or desirable in order to
perfect the Liens created thereby,

     (E) copies of the Assigned Agreements referred to in the Security
Agreement, together with a consent to such assignment, in substantially the
form of Exhibit B to the Security Agreement, duly executed by each
party to such Assigned Agreements other than the Loan Parties, and

     (F) reasonable evidence that all other action that the Administrative
Agent may reasonably deem necessary or desirable in order to perfect the
Liens created under the Security Agreement has been taken (including receipt
of duly executed payoff letters and UCC-3 termination statements to the
extent requested by the Administrative Agent);

     (iv)
an amended and restated intellectual property security agreement or
an intellectual property security agreement supplement, in
substantially the form of Exhibit G hereto (together with each other
intellectual property security agreement and intellectual property security
agreement supplement delivered pursuant to Section 6.12, in each case as
amended, the “Intellectual Property Security Agreement”), duly executed by each Loan
Party, together with evidence that all action that the Administrative Agent may
reasonably deem necessary or desirable in order to perfect and protect the first
priority liens and security interests created under the Intellectual Property
Security Agreement has been taken;

     (v) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Responsible Officers of each Loan Party as the
Administrative Agent may reasonably require evidencing the identity, authority and
capacity of each Responsible Officer thereof authorized to act as a
Responsible Officer in connection with this Agreement and the other Loan
Documents to which such Loan Party is a party or is to be a party;

     (vi) such documents and certifications as the Administrative Agent may
reasonably require to evidence that each Loan Party is duly organized or formed, and
that each of the Borrower, Holdings and each of their respective Subsidiaries is
validly existing, in good standing and qualified to engage in business in each
jurisdiction where its ownership, lease or operation of properties

 

 

or the conduct of its business requires such qualification, except to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect;

     (vii) a favorable opinion of Latham & Watkins LLP, counsel to the Loan Parties,
addressed to each Agent and each Lender, as to the matters set forth in Exhibit
H-1 and such other matters concerning the Loan Parties and the Loan Documents as
the Required Lenders may reasonably request;

     (viii) a favorable opinion of Boult, Cummings, Conners & Berry, PLC, local
counsel to the Loan Parties in Tennessee, addressed to the Administrative Agent and
each Lender, as to the matters set forth in Exhibit H-2 and such other
matters concerning the Loan Parties and the Loan Documents as the Required Lenders
may reasonably request;

     (ix) a certificate of a Responsible Officer of each Loan Party either (A)
attaching copies of all consents, licenses and approvals required in connection with
the execution, delivery and performance by such Loan Party and the validity against
such Loan Party of the Loan Documents to which it is a party, and such consents,
licenses and approvals shall be in full force and effect, or (B) stating that no
such consents, licenses or approvals are so required;

     (x) a certificate signed by a Responsible Officer of Holdings, the statements
in which shall be true, certifying (A) that (1) the representations and warranties
of the Borrower and each other Loan Party contained in Article V or in any
other Loan Document are true and correct in all material respects on and as of the
Closing Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case as of such earlier date and (2)
no Default exists or would result from the initial Credit Extension or the
application of the proceeds thereof and (B) that there has been no event or
circumstance since the date of the Audited Financial Statements that has had or
could be reasonably expected to have, either individually or in the aggregate, a
Material Adverse Effect;

     (xi) certificates attesting to the Solvency of each Loan Party before and after
giving effect to the Transaction, from its Chief Financial Officer;

     (xii) such financial, business and other information regarding each Loan Party
and its Subsidiaries as the Lenders shall have reasonably requested,
including, without limitation, information as to possible contingent
liabilities, tax matters, environmental matters, obligations under Plans and
Multiemployer Plans, collective bargaining agreements and other arrangements with
employees, audited annual financial statements dated December 31, 2005, interim
financial statements dated the end of the most recent fiscal quarter for which
financial statements are available (or, in the event the Lenders’ due diligence
review reveals material changes since such financial statements, as of a later date
within 45 days of the day of the initial Credit Extension), pro forma financial
statements

 

 

as to Holdings and forecasts prepared by management of Holdings, in form
and substance satisfactory to the Lenders, of balance sheets, income statements and
cash flow statements on a quarterly basis for the first year following the day of
the initial Credit Extension and on an annual basis for each year thereafter until
the Maturity Date for the Term B Facility;

     (xiii) a Committed Loan Notice relating to the initial Credit Extension;

     (xiv) (A) a duly completed Senior Secured Leverage Covenant Compliance
Certificate and (B) a duly completed Revolver Maintenance Covenant Compliance
Certificate, in each case as of the last day of the fiscal quarter of Holdings most
recently ended prior to the Closing Date for which financial statements are
available, each of which shall be completed as though the Loans borrowed on the
Closing Date had been incurred as of the first day of the four-quarter period
covered by such Compliance Certificate, assuming that such Loans were Eurodollar
Rate Loans and that the LIBO Rate applicable thereto was equal to a rate designated
by the Administrative Agent to the Borrower as of the Closing Date, and as though
the Indebtedness under the Existing Credit Agreement had been repaid as of such
date, signed by a Responsible Officer of Holdings;

     (xv) reasonable evidence that all outstanding interest, fees, expenses and
other amounts (other than principal of Loans) under the Existing Credit Agreement
have been or concurrently with the Closing Date are being paid in full and all
commitments thereunder terminated;

     (xvi) certified copies of each Qualified Designated Entity Agreement executed
prior to the closing date with respect to each ANB Entity, each Auction 66 Entity
and each Oregon Entity, which shall be in form and substance reasonably satisfactory
to the Administrative Agent; and

     (xvii) such other assurances, certificates, documents, consents or opinions as
any Agent, any L/C Issuer or any Lender reasonably may require.

     (b) The Lenders shall be reasonably satisfied with the amount, types and terms and
conditions of all insurance maintained by Holdings and its subsidiaries; and, to the extent
available on a commercially reasonably basis, the Lenders shall have received endorsements
naming the Administrative Agent or the Collateral Agent (as defined in the Security
Agreement) on behalf of the Lenders, as an additional insured or loss payee, as
the case may be, under all insurance policies maintained with respect to the assets and
properties of the Loan Parties that constitute Collateral.

     (c) All accrued fees and expenses of the Administrative Agent, the Joint Lead Arrangers
and the Lenders (including the fees and expenses of counsel for the Administrative Agent and
local counsel for the Lenders) that are by their terms payable on or prior to the Closing
Date shall have been paid, to the extent that invoices in

 

 

customary detail have been received by the Company not later than the second Business Day before the Closing Date.

     (d) The Closing Date shall have occurred on or before June 30, 2006.

     (e) There shall exist no action, suit, investigation, litigation or proceeding
affecting any Loan Party or any of its Subsidiaries pending or, to the knowledge of Holdings
or the Borrower, threatened before any Governmental Authority or arbitrator that (i) could
be reasonably likely to have a Material Adverse Effect or (ii) purports to materially and
adversely affect the Transaction.

     (f) All governmental authorizations and all third party consents and approvals
necessary in connection with the Transaction shall have been obtained and shall remain in
effect; all applicable waiting periods in connection with the Transaction shall have expired
without any action being taken by any Governmental Authority, and no Law shall be applicable
in the reasonable judgment of the Lenders, in each case that restrains, prevents or imposes
materially adverse conditions upon the Transaction or the rights of the Loan Parties or
their Subsidiaries freely to transfer or otherwise dispose of, or to create any Lien on, any
properties now owned or hereafter acquired by any of them.

     (g) The Lenders shall have completed a due diligence investigation of the Borrower and
its Subsidiaries in scope, and with results, satisfactory to the Lenders, and shall have
been given such access to the management, records, books of account, contracts and
properties of Holdings and its subsidiaries and shall have received such financial, business
and other information regarding each of the foregoing Persons and businesses as they shall
have requested, and no changes or developments shall have occurred, and no new or additional
information shall have been received or discovered by the Administrative Agent or the
Lenders regarding Holdings and it Subsidiaries or the transaction after May 10, 2006 that
(A) either individually or in the aggregate could reasonably be expected to have a Material
Adverse Effect or (B) purports to adversely affect the Facilities or any other aspect of the
Transaction, and nothing shall have come to the attention of the Lenders during the course
of such due diligence investigation to lead them to believe (i) that the Information
Memorandum was or has become misleading, incorrect or incomplete in any material respect,
and (ii) that the Transaction will have a Material Adverse Effect; without limiting the
generality of the foregoing, the Lenders shall have been given such access to the
management, records, books of account, contracts and properties of Holdings and its
Subsidiaries as they shall have requested.

     (h) After giving effect to the Transaction, including all Credit Extensions made in
connection therewith, there shall as of the Closing Date be no Revolving Credit Loans or L/C
Obligations outstanding other than the Existing Letters of Credit.

     (i) The Lenders shall be satisfied with (i) the pro forma capital and ownership
structure and the shareholder arrangements of Holdings and its Subsidiaries, including,
without limitation, the charter and bylaws of Holdings and each such Subsidiary and each
agreement or instrument relating thereto, and (ii) the amount, tenor, ranking and other
terms and conditions of all other equity and debt financings comprising part of the

 

 

Transaction. Without limiting the generality of the foregoing, no Indebtedness for borrowed
money other than (x) the Existing Letters of Credit, (y) Permitted Unsecured Debt and (z)
Permitted Bridge Debt shall be outstanding.

     (j) The Administrative Agent shall be reasonably satisfied that the amount of committed
financing available to Holdings and its Subsidiaries shall be sufficient to meet the ongoing
financial needs of Holdings and its Subsidiaries after giving effect to the Transaction.
The Lenders shall be reasonably satisfied with the amount, terms, conditions and holders of
all intercompany Indebtedness and all indebtedness and other material liabilities owing to
third parties to be outstanding on and after the Closing Date.

Without limiting the generality of the provisions of Section 9.04, for purposes of
determining compliance with the conditions specified in this Section 4.01, each Lender that
has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

          4.02 Conditions to all Credit Extensions. The obligation of each Lender to honor any
Request for Credit Extension (other than a Committed Loan Notice requesting only a conversion of
Loans to the other Type, or a continuation (including a rollover) of Eurodollar Rate Loans) is
subject to the satisfaction or waiver in accordance with Section 10.01 of the following conditions
precedent:

     (a) The representations and warranties of the Borrower and each other Loan Party
contained in Article V or any other Loan Document, or which are contained in any
document furnished at any time under or in connection herewith or therewith, shall be true
and correct in all material respects on and as of the date of such Credit Extension, except
to the extent that such representations and warranties specifically refer to an earlier
date, in which case they shall be true and correct in all material respects as of such
earlier date, and except that for purposes of this Section 4.02, the representations
and warranties contained in Sections 5.05(a) and (b) shall be deemed to
refer to the most recent statements furnished pursuant to Sections 6.01(a) and
(b), respectively.

     (b) No Default (excluding, in the case of a Request for Credit Extension in respect of
the Term B Facility, a Default under any Revolving Facility Covenant) shall
exist, or would result from such proposed Credit Extension or from the application of
the proceeds thereof.

     (c) In the case of a Request for Credit Extension consisting of a Revolving Credit Loan
or Letter of Credit, no Default under any Revolver Maintenance Covenant shall exist, or
would result from such proposed Credit Extension or from the application of the proceeds
thereof.

     (d) The Administrative Agent and, if applicable, the L/C Issuer shall have received a
Request for Credit Extension in accordance with the requirements hereof.

 

 

          Each Request for Credit Extension (other than a Committed Loan Notice requesting only a
conversion of Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted by the
Borrower shall be deemed to be a representation and warranty that the conditions specified in
Sections 4.02(a) and (b) have been satisfied on and as of the date of the
applicable Credit Extension.

ARTICLE V

REPRESENTATIONS AND WARRANTIES

          Each of Holdings and the Borrower represents and warrants to the Agents and the Lenders that:

          5.01 Existence, Qualification and Power; Compliance with Laws. Each Loan Party and
each of its Subsidiaries (a) is duly organized or formed, validly existing and in good standing
under the Laws of the jurisdiction of its incorporation or organization, (b) has all requisite
power and authority and all requisite governmental licenses, authorizations, consents and approvals
to (i) own or lease its assets and carry on its business and (ii) execute, deliver and perform its
obligations under the Loan Documents to which it is a party and consummate the Transaction, (c) is
duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business requires such
qualification or license, and (d) is in compliance with all Laws; except in each case referred to
in clause (b)(i), (c) or (d), to the extent that failure to do so could not
reasonably be expected to have a Material Adverse Effect.

          5.02 Authorization; No Contravention. The execution, delivery and performance by each
Loan Party of each Loan Document to which such Person is or is to be a party have been duly
authorized by all necessary corporate or other organizational action, and do not and will not (a)
contravene the terms of any of such Person’s Organization Documents; (b) conflict with or result in
any breach or contravention of, or the creation of any Lien under, or require any payment to be
made under (i) any Contractual Obligation to which such Person is a party or affecting such Person
or the properties of such Person or any of its Subsidiaries or (ii) any order, injunction, writ or
decree of any Governmental Authority or any arbitral award to which such Person or its property is
subject; or (c) violate any Law. Each Loan Party and each Subsidiary thereof is in compliance
with all Contractual Obligations referred to in clause (b)(i), except to the extent
that failure to do so could not reasonably be expected to have a Material Adverse Effect.

          5.03 Governmental Authorization; Other Consents. No approval, consent, exemption,
authorization, or other action by, or notice to, or filing with, any Governmental Authority or any
other Person is necessary or required in connection with (a) the execution, delivery or (other than
filings required to be made in the ordinary course of business after the date hereof) performance
by, or enforcement against, any Loan Party of this Agreement or any other Loan Document, or for the
consummation of the Transaction, (b) the grant by any Loan Party of the Liens granted by it
pursuant to the Collateral Documents or (c) other than filing of the documents referred to in
clauses (B) and (D) of Section 4.01(a)(iii) and in Section
4.01(a)(iv) and any other filings contemplated by the Security Agreement, the perfection or
maintenance of the Liens created under the Collateral Documents (including the first priority
nature thereof). All

 

 

applicable waiting periods in connection with the Transaction have expired
without any action having been taken by any Governmental Authority restraining, preventing or
imposing materially adverse conditions upon the Transaction or the rights of the Loan Parties or
their Subsidiaries freely to transfer or otherwise dispose of, or to create any Lien on, any
properties now owned or hereafter acquired by any of them.

          5.04 Binding Effect. This Agreement has been, and each other Loan Document, when
delivered hereunder, will have been, duly executed and delivered by each Loan Party that is party
thereto. This Agreement constitutes, and each other Loan Document when so delivered will
constitute, a legal, valid and binding obligation of such Loan Party, enforceable against each Loan
Party that is party thereto in accordance with its terms, except as enforceability may be limited
by applicable Debtor Relief Laws or similar laws affecting creditors’ rights generally or by
equitable principles relating to enforceability.

          5.05 Financial Statements; No Material Adverse Effect. (a) The Audited Financial
Statements (i) were prepared in accordance with GAAP consistently applied throughout the period
covered thereby, except as otherwise expressly noted therein; (ii) fairly present in all material
respects the consolidated financial condition of Holdings and its Subsidiaries (including Qualified
Designated Entities and Joint Venture Entities that are required under GAAP to be consolidated with
Holdings and its Subsidiaries) as of the date thereof and their results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein; and (iii) show all material indebtedness and
other material liabilities, direct or contingent, of Holdings and its Subsidiaries as of the date
thereof, including material liabilities for taxes, material commitments and Indebtedness.

          (b) The unaudited consolidated financial statements of Holdings and its Subsidiaries dated
March 31, 2006, and the related consolidated statements of income or operations and cash flows for
the fiscal quarter ended on that date (i) were prepared in accordance with GAAP consistently
applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present in all material respects the
consolidated financial condition of Holdings and its Subsidiaries (including Qualified Designated
Entities and Joint Venture Entities that are required under GAAP to be consolidated with Holdings
and its Subsidiaries) as of the date thereof and their results of operations for the period covered
thereby, subject, in the case of clauses (i) and (ii), to the absence of
disclosures in footnotes and to normal year-end audit adjustments.

          (c) Since the date of the Audited Financial Statements, there has been no event or
circumstance, either individually or in the aggregate, that has had or could reasonably be expected
to have a Material Adverse Effect.

          (d) The consolidated forecasted balance sheets, statements of income and statements of cash
flows of Holdings and its Subsidiaries (including any Qualified Designated Entities and Joint
Venture Entities that are required under GAAP to be consolidated with Holdings and its
Subsidiaries) delivered to the Lenders pursuant to Section 4.01 or 6.01 were
prepared in good faith on the basis of assumptions which were fair in light of the conditions

 

 

existing at the time of delivery of such forecasts, and represented, at the time of delivery,
Holdings’ good faith estimate of its future financial performance on a consolidated basis.

          5.06 Litigation. There are no actions, suits, proceedings, claims or disputes pending
or, to the knowledge of Holdings, threatened or contemplated, at law, in equity, in arbitration or
before any Governmental Authority, by or against any Loan Party or any of its Subsidiaries or
against any of their properties or revenues that (a) purport to affect or pertain to this
Agreement, any other Loan Document or the consummation of the Transaction, or (b) either
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect,
or (c) as of the date hereof, except as specifically disclosed on Schedule 5.06 (the
“Disclosed Litigation”), either individually or in the aggregate, if determined adversely, could
reasonably be expected to have a Material Adverse Effect, and since the date hereof there has been
no adverse change in the status, or financial effect on any Loan Party or any Subsidiary thereof,
of the Disclosed Litigation that (either individually or taken together with all other such adverse
changes) could reasonably be expected to have a Material Adverse Effect.

          5.07 No Default. None of Holdings, the Borrower or any Subsidiary is in default under
or with respect to any Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No Default has occurred and is
continuing or would result from the consummation of the transactions contemplated by this Agreement
or any other Loan Document.

          5.08 Ownership of Property; Liens; Investments. (a) Each Loan Party and each of its
Subsidiaries has good record and marketable title in fee simple to, or valid leasehold interests
in, all real property necessary or used in the ordinary conduct of its business, except for such
defects in title or in leasehold interests as could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. Each of the Loan Parties and each of its Subsidiaries is in compliance with
all of its obligations in respect of leases of real property to which it is a party and has not
allowed any such lease to lapse or be terminated or any rights to renew such leases to be forfeited
or canceled except, in any case, where the failure to do so, either individually or in the
aggregate, could not reasonably be expected to have a Material Adverse Effect.

          (b) Schedule 5.08(b) sets forth a complete and accurate list as of April 30, 2006 of
all Liens of the types described in clauses (b), (i), (n),
(o) and (p) of Section 7.01 on the property or assets of each Loan Party
and each of its Subsidiaries, showing as of such date the lienholder thereof, the principal amount
of the obligations secured thereby and the property or assets of such Loan Party or such Subsidiary
subject thereto. The property of each Loan Party and each of its Subsidiaries is subject to no
Liens, other than Liens set forth on Schedule 5.08(b), and as otherwise permitted by
Section 7.01.

          (c) Schedule 5.08(c) sets forth a complete and accurate list as of the date of this
Agreement of all real property owned by each Loan Party and each of its Subsidiaries, showing as of
the date hereof the street address, county or other relevant jurisdiction, state, record owner and
book and estimated fair value thereof. Each Loan Party and each of its Subsidiaries has good,
marketable and insurable fee simple title to the real property owned by

 

 

such Loan Party or such Subsidiary, free and clear of all Liens, other than Liens created or permitted by the Loan
Documents.

          (d) Schedule 5.08(d) sets forth a complete and accurate list as of April 30, 2006 of
all Investments held by any Loan Party or any Subsidiary of a Loan Party, showing as of such date
the amount (except with respect to Indebtedness between Loan Parties), obligor or issuer and maturity, if any, thereof.

          5.09 Environmental Compliance. No Loan Party has any Environmental Liabilities that
could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

          5.10 Insurance. The material tangible properties of the Borrower and its Subsidiaries
are insured with financially sound and reputable insurance companies not Affiliates of the
Borrower, in such amounts, with such deductibles and covering such risks as are customarily carried
by companies engaged in similar businesses and owning similar properties in localities where the
Borrower or the applicable Subsidiary operates.

          5.11 Taxes. Except as set forth in Schedule 5.11, to the knowledge of
Holdings, Holdings and its Subsidiaries have filed all material Federal, state and other tax
returns and reports required to be filed, and have paid all material Federal, state and other
taxes, assessments, fees and other governmental charges levied or imposed upon them or their
properties, income or assets otherwise due and payable, except those which are being contested in
good faith by appropriate proceedings diligently conducted and for which adequate reserves have
been provided in accordance with GAAP. To the knowledge of Holdings, there is no proposed tax
assessment against Holdings or any Subsidiary that would, if made, have a Material Adverse
Effect. Neither any Loan Party nor any of its Subsidiaries is party to any tax sharing agreement
other than one or more tax sharing agreements between and among Loan Parties (excluding
Disqualified Subsidiaries).

          5.12 ERISA Compliance. (a) Except for such non-compliance as could not reasonably be
expected to have a Material Adverse Effect, each Plan other than a Multiemployer Plan is in
compliance in all material respects with the applicable provisions of ERISA, the Code and other
Federal or state Laws. Each Plan that is intended to qualify under Section 401(a) of the Code has
received a favorable determination letter from the IRS or an application for such a letter is
currently being processed by the IRS with respect thereto and, to the knowledge of Holdings,
nothing has occurred which would prevent, or cause the loss of, such qualification, except as could
not reasonably be expected to have a Material Adverse Effect. Holdings and each ERISA Affiliate
have made all required contributions in all material respects to each Plan subject to Section 412
of the Code, and no application for a funding waiver or an extension of any amortization period
pursuant to Section 412 of the Code has been made with respect to any Plan.

          (b) There are no pending or, to the knowledge of Holdings, threatened claims, actions or
lawsuits, or action by any Governmental Authority, with respect to any Plan that could be
reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction
or violation of the fiduciary responsibility rules under ERISA with respect to any Plan that has
resulted or could reasonably be expected to result in a Material Adverse Effect.

 

 

          (c) (i) No ERISA Event has occurred or is reasonably expected to occur that could reasonably
be expected to result in a material liability to any Loan Party or any of their Affiliates; (ii) no
Pension Plan has any Unfunded Pension Liability; (iii) neither Holdings nor any ERISA Affiliate has
incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any
Pension Plan (other than premiums due and not delinquent under Section 4007 of ERISA); (iv) neither
Holdings nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and
no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in
such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v)
neither the Borrower nor any ERISA Affiliate has engaged in a transaction that could be subject to
Sections 4069(a) or 4212(c) of ERISA.

          5.13 Subsidiaries; Equity Interests; Loan Parties. As of the date of this Agreement,
each Loan Party has no Subsidiaries other than those specifically disclosed in Part (a) of
Schedule 5.13, and all of the outstanding Equity Interests in such Subsidiaries have been
validly issued, are fully paid and non-assessable and are owned by a Loan Party in the amounts
specified on Part (a) of Schedule 5.13 free and clear of all Liens except those created
under the Collateral Documents. As of the date hereof, each Loan Party has no equity investments
in any other corporation or entity other than such Loan Party’s Subsidiaries and those equity
investments specifically disclosed in Part (b) of Schedule 5.13. All of the outstanding
Equity Interests in the Borrower have been validly issued, are fully paid and
non-assessable and are owned by Holdings in the amounts specified on Part (c) of Schedule
5.13 free and clear of all Liens except those created under the Collateral Documents. Set
forth on Part (d) of Schedule 5.13 is a complete and accurate list as of the date hereof of
all Loan Parties, showing as of the date hereof (as to each Loan Party) the jurisdiction of its
incorporation, the address of its principal place of business and its U.S. taxpayer identification
number or, in the case of any non-U.S. Loan Party that does not have a U.S. taxpayer identification
number, its unique identification number issued to it by the jurisdiction of its incorporation. As
of the date hereof, the copy of the charter of each Loan Party and each amendment thereto provided
pursuant to Section 4.01(a)(vi) is a true and correct copy of each such document, each of
which is valid and in full force and effect.

          5.14 Margin Regulations; Investment Company Act; Public Utility Holding Company Act.
(a) The Borrower is not engaged and will not engage, principally or as one of its important
activities, in the business of purchasing or carrying margin stock (within the meaning of
Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock and no proceeds of any Borrowings or drawings under any Letter of Credit will be used
to purchase or carry any margin stock or to extend credit to others for the purpose of purchasing
or carrying any margin stock.

          (b) None of the Borrower, any Person Controlling the Borrower, or any Subsidiary (i) is a
“holding company,” or a “subsidiary company” of a “holding company,” or an “affiliate” of a
“holding company” or of a “subsidiary company” of a “holding company,” within the meaning of the
Public Utility Holding Company Act of 1935, or (ii) is or is required to be registered as an
“investment company” under the Investment Company Act of 1940.

 

 

          5.15 Disclosure. Holdings has no knowledge of any event or circumstance that,
individually or in the aggregate, could reasonably be expected to result in a Material Adverse
Effect, except as Holdings or the Borrower has disclosed to the Administrative Agent and the
Lenders. No report, financial statement, certificate or other information furnished (whether in
writing or orally) by or on behalf of any Loan Party to the Administrative Agent or any Lender
(other than industry information, which, if provided by any Loan Party, was selected in good faith
by such Loan Party as being in such Loan Party’s estimate not materially inaccurate or misleading)
in connection with the transactions contemplated hereby and the negotiation of this Agreement or
delivered hereunder or under any other Loan Document (in each case as modified or supplemented by
other information so furnished) contained any untrue statement of a material fact or omitted to
state any material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading; provided that, with respect to projected
financial information, each of Holdings and the Borrower represents only that such information was
prepared in good faith based upon assumptions believed to be reasonable at the time made, it being
recognized by Lenders that such projections as to future events are not to be viewed as facts and
that actual results during the period or periods covered by any such projections may differ from
the projected results.

          5.16 Compliance with Laws. Each Loan Party and each Subsidiary is in compliance in
all material respects with the requirements of all Laws and all orders, writs, injunctions and
decrees applicable to it or to its properties, except in such instances in which (a) such
requirement of Law or order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted or (b) the failure to comply therewith, either
individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect.

          5.17 Intellectual Property; Licenses, Etc. Each Loan Party and its Subsidiaries own,
or possess the right to use, all of the trademarks, service marks, trade names, copyrights,
patents, patent rights, franchises, licenses and other intellectual property rights (collectively,
“IP Rights”) that are reasonably necessary for or material to the operation of their respective
businesses, without conflict with the rights of any other Person, except for any infringements
that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse
Effect. Schedule 5.17 sets forth a complete and accurate list as of the date hereof of all
patent, trademark and copyright registrations and pending applications therefor of each Loan Party
and its Subsidiaries. To the knowledge of the Borrower, no slogan or other advertising device,
product, process, method, substance, part or other material now employed, or now contemplated to be
employed, by any Loan Party or any of its Subsidiaries infringes upon any rights held by any other
Person, except for any infringements that, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect. No claim or litigation regarding any of the
foregoing is pending or, to the knowledge of the Borrower, threatened, which, either individually
or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

          5.18 Solvency. Each Loan Party is, individually and together with its Subsidiaries,
Solvent.

 

 

          5.19 Qualified Designated Entity Agreements. The Qualified Designated Entity
Agreements delivered pursuant to Section 4.01(a)(xi), Section 7.03(n) or
Section 7.03(o) constitute all existing Qualified Designated Entity Agreements to which
Holdings or any of its Subsidiaries is a party, and have not been amended other than in accordance
with Section 7.12, and copies of all material written amendments and waivers executed by
the parties to such Qualified Designated Entity Agreement have been delivered to the Administrative
Agent in accordance with Section 6.02(i).

ARTICLE VI

AFFIRMATIVE COVENANTS

          So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,
each of Holdings and the Borrower shall, and shall (except in the case of the covenants set forth
in Sections 6.01, 6.02, 6.03 and 6.11) cause each Subsidiary to:

          6.01 Financial Statements. Deliver to the Administrative Agent (which shall deliver
to each Lender), in form and detail satisfactory to the Administrative Agent and the Required
Lenders:

     (a) as soon as available, but in any event within 90 days after the end of each fiscal
year of Holdings, a consolidated balance sheet of Holdings and its Subsidiaries (including
Qualified Designated Entities and Joint Venture Entities that are required under GAAP to be
consolidated with Holdings and its Subsidiaries) as at the end of such fiscal year, and the
related consolidated statements of income or operations, shareholders’ equity and cash flows
for such fiscal year, setting forth in each case in comparative form the figures for the
previous fiscal year, all in reasonable detail and prepared in accordance with GAAP, audited
and accompanied by a report and opinion of an independent certified public accountant of
nationally recognized standing reasonably acceptable to the Required Lenders, which report
and opinion shall be prepared in accordance with generally accepted auditing standards and
shall not be subject to any “going concern” or like qualification or exception or any
qualification or exception as to the scope of such audit;

     (b) as soon as available, but in any event within 45 days after the end of each of the
first three fiscal quarters of each fiscal year of Holdings, a consolidated balance sheet of
Holdings and its Subsidiaries (including Qualified Designated Entities and Joint Venture
Entities that are required under GAAP to be consolidated with Holdings and its Subsidiaries)
as at the end of such fiscal quarter, and the related consolidated statements of income or
operations and cash flows for such fiscal quarter and for the portion of Holdings’ fiscal
year then ended, setting forth in each case in comparative form the figures for the
corresponding fiscal quarter of the previous fiscal year and the corresponding portion of
the previous fiscal year, all in reasonable detail and certified by a Responsible Officer of
the Borrower as fairly presenting in all material respects the financial condition, results
of operations and cash flows of Holdings and its Subsidiaries (including Qualified
Designated Entities and Joint Venture Entities that are required under GAAP to be
consolidated with Holdings and its Subsidiaries) on a consolidated

 

 

basis in accordance with GAAP, subject only to normal year-end audit adjustments and
the absence of disclosures in footnotes; and

     (c) as soon as available, but in any event no more than 45 days after the end of each
fiscal year, forecasts prepared by management of Holdings, in form reasonably satisfactory
to the Administrative Agent and the Required Lenders, of consolidated balance sheets and
statements of income or operations and cash flows of Holdings and its Subsidiaries
(including Qualified Designated Entities and Joint Venture Entities that are required under
GAAP to be consolidated with Holdings and its Subsidiaries) on a quarterly basis for such
fiscal year and on an annual basis for each fiscal year thereafter until the Maturity Date
for the Term B Facility.

As to any information contained in materials furnished pursuant to Section 6.02(c), neither
Holdings nor the Borrower shall be separately required to furnish such information under
Section 6.01(a) or (b), but the foregoing shall not be in derogation of the
obligation of Holdings to furnish the information and materials described in Sections
6.01(a) and (b) at the times specified therein.

          6.02 Certificates; Other Information. Deliver to the Administrative Agent (which
shall deliver to each Lender), in form and detail reasonably satisfactory to the Administrative
Agent and the Required Lenders:

     (a) concurrently with the delivery of the financial statements referred to in
Sections 6.01(a) and (b), (i) a duly completed Senior Secured Leverage
Covenant Compliance Certificate, (ii) a duly completed Revolver Maintenance Covenant
Compliance Certificate (it being understood that any non-compliance shown in such
certificate shall not give rise to a Default or Event of Default if as of the last day of
the fiscal quarter to which such certificate pertains no Revolving Credit Loans or
Uncollateralized Letters of Credit are outstanding) and (iii) a list of all (A) Investments
consisting of cash contributions to equity or purchases of Equity Interests, (B) secured
loans for borrowed money, (C) Permitted Debt Put Rights incurred and payments made in
respect thereof, (D) Guarantees of debt for borrowed money of Joint Venture Entities and
Qualified Designated Entities and (E) payments in respect of Permitted Make-Whole
Obligations, in each case made or incurred during the most recently completed fiscal quarter
pursuant to Sections 7.03(k), 7.03(l), 7.03(n), and 7.03(o)
and (iv) if at such time any Revolving Credit Loans or Uncollateralized Letters of Credit
are outstanding, a duly completed Revolver Maintenance Covenant Compliance Certificate, in
each case signed by a Responsible Officer of Holdings;

     (b) promptly after any request by the Administrative Agent or any Lender, copies of any
detailed audit reports, management letters or written recommendations submitted to the board
of directors (or the audit committee of the board of directors) of any Loan Party by
independent accountants in connection with the accounts or books of any Loan Party or any of
its Subsidiaries, or any audit of any of them;

     (c) promptly after the same are available, copies of each annual report, proxy or
financial statement or other report or communication sent to the stockholders of

 

 

Holdings, and copies of all annual, regular, periodic and special reports and
registration statements filed by Holdings with the SEC under Section 13 or 15(d) of the
Securities Exchange Act of 1934, or with any national securities exchange, and in any case
not otherwise required to be delivered to the Administrative Agent pursuant hereto;

     (d) promptly after the furnishing thereof, copies of any statement or report furnished
to any holder of debt securities of any Loan Party or of any of its Subsidiaries pursuant to
the terms of any indenture, loan or credit or similar agreement and not otherwise required
to be furnished to the Lenders pursuant to any other clause of this Section 6.02;

     (e) as soon as available and in any event within 60 days after the end of each fiscal
year, commencing with the fiscal year ended December 31, 2006, a report summarizing the
material insurance coverage (specifying type, amount and carrier) in effect for each Loan
Party and its Subsidiaries and containing such additional information as the Administrative
Agent, or any Lender through the Administrative Agent, may reasonably specify;

     (f) promptly and in any event within five Business Days after receipt thereof by any
Loan Party or any of its Subsidiaries, copies of each notice or other correspondence
received from the SEC (or comparable agency in any applicable non-U.S. jurisdiction)
concerning any investigation or possible investigation or other inquiry by such agency
regarding financial or other operational results of any Loan Party or any of its
Subsidiaries (but excluding correspondence and comment letters received from the SEC in
connection with the SEC’s review of annual, regular, periodic and special reports and
registration statements filed by Holdings with the SEC);

     (g) promptly after the written assertion or occurrence thereof, notice of any
Environmental Action against any Loan Party or of any noncompliance by any Loan Party or any
of its Subsidiaries with any Environmental Law or Environmental Permit that could reasonably
be expected to have a Material Adverse Effect;

     (h) as soon as available and in any event within 30 days after the end of each fiscal
year (commencing with the fiscal year ended December 31, 2006), a report supplementing
Schedules 5.08(c) hereto, including an identification of all owned real property
disposed of by any Loan Party or any of its Subsidiaries during such fiscal year, a list and
description (including the street address, county or other relevant jurisdiction, state,
record owner and book value thereof) of all real property acquired during such fiscal year
and a description of such other changes in the information included in such Schedules as may
be necessary for such Schedules to be accurate and complete;

     (i) as soon as available and in any event within 30 days after the execution thereof,
certified copies of each material written amendment or waiver executed by the parties to any
Qualified Designated Entity Agreement; and

     (j) promptly, such additional information regarding the business, financial, legal or
corporate affairs of any Loan Party or any Subsidiary, or compliance with the

 

 

terms of the Loan Documents, as the Administrative Agent or any Lender may from time to
time reasonably request.

          Documents required to be delivered pursuant to Section 6.01(a) or (b) or
Section 6.02(c) (to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which Holdings posts such documents, or provides a link thereto on
Holdings’ website on the Internet at the website address listed on Schedule 10.02; or (ii)
on which such documents are posted on Holdings’ behalf on an Internet or intranet website, if any,
to which each Lender and each Agent have access (whether a commercial, third-party website or
whether sponsored by the Administrative Agent); provided that: (i) upon request by the
Administrative Agent or any Lender, Holdings shall deliver paper copies of such documents to the
Administrative Agent or any Lender that requests Holdings to deliver such paper copies until a
written request to cease delivering paper copies is given by the Administrative Agent or such
Lender and (ii) Holdings shall notify the Administrative Agent, which shall notify each Lender, (by
telecopier or electronic mail) of the posting of any such documents and provide to the
Administrative Agent by electronic mail electronic versions (i.e., soft copies) of such
documents. Notwithstanding anything contained herein, in every instance Holdings shall be required
to provide paper copies of the Compliance Certificates required by Section 6.02(a) to the
Administrative Agent. Except for such Compliance Certificates, the Administrative Agent shall have
no obligation to request the delivery or to maintain copies of the documents referred to above, and
in any event shall have no responsibility to monitor compliance by the Borrower with any such
request for delivery, and each Lender shall be solely responsible for requesting delivery to it or
maintaining its copies of such documents.

          Each of Holdings and the Borrower hereby acknowledges that (a) the Administrative Agent and/or
the Joint Lead Arrangers will make available to the Lenders and the L/C Issuer materials and/or
information provided by or on behalf of Holdings or the Borrower hereunder (collectively, “Borrower
Materials”) by posting the Borrower Materials on IntraLinks or another similar electronic system
(the “Platform”) and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders
that do not wish to receive material non-public information with respect to Holdings or its
securities) (each, a “Public Lender”). Each of Holdings and the Borrower hereby agrees that it
will use commercially reasonable efforts to identify that portion of the Borrower Materials that
may be distributed to the Public Lenders and that (w) all such Borrower Materials shall be clearly
and conspicuously marked “PUBLIC” which, at a minimum, shall mean that the word “PUBLIC” shall
appear prominently on the first page thereof; (x) by marking Borrower Materials “PUBLIC,” the
Borrower shall be deemed to have authorized the Administrative Agent, the Joint Lead Arrangers, the
L/C Issuer and the Lenders to treat such Borrower Materials as either publicly available
information or not material information (although it may be sensitive and proprietary) with respect
to the Borrower or its securities for purposes of United States Federal and state securities laws;
(y) all Borrower Materials marked “PUBLIC” are permitted to be made available through a portion of
the Platform designated “Public Investor”; and (z) the Administrative Agent and the Joint Lead
Arrangers shall treat any Borrower Materials that are not marked “PUBLIC” as being suitable only
for posting on a portion of the Platform not designated “Public Investor.”

 

 

          6.03 Notices. Promptly upon a Responsible Officer of Holdings or the Borrower
obtaining knowledge thereof, notify the Administrative Agent, which shall notify each Lender:

     (a) of the occurrence of any Default;

     (b) of any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (but in each case only to the extent the same has
resulted or could reasonably be expected to result in a Material Adverse Effect) (i) breach
or non-performance of, or any default under, a Contractual Obligation of any Loan Party or
any Subsidiary thereof; (ii) any dispute, litigation, investigation, proceeding or
suspension between any Loan Party or any Subsidiary thereof and any Governmental Authority;
or (iii) the commencement of, or any material development in, any litigation or proceeding
affecting any Loan Party or any Subsidiary thereof, including pursuant to any applicable
Environmental Laws;

     (c) of the occurrence of any ERISA Event;

     (d) of any material change in accounting policies or financial reporting practices by
any Loan Party or any Subsidiary (other than changes disclosed in the financial statements
referred to in Sections 6.01(a) and (b));

     (e) of the (A) occurrence of any Disposition of property or assets for which the
Borrower is required to make a mandatory prepayment pursuant to Section 2.04(b)(ii),
(B) incurrence or issuance of any Indebtedness for which the Borrower is required to make a
mandatory repayment pursuant to Section 2.04(b)(iii) and (C) receipt of any
Extraordinary Receipt for which the Borrower is required to make a mandatory prepayment
pursuant to Section 2.04(b)(iv); and

     (f) of the occurrence of any default under any QDE Credit Documents of a type described
in Section 6.23 as to which the applicable grace period, if any, has expired.

          Each notice pursuant to Section 6.03(a), (b), (c) or (d) shall be accompanied
by a statement of a Responsible Officer of Holdings setting forth details of the occurrence
referred to therein and stating what action Holdings has taken or caused the Borrower to take and
proposes to take or cause the Borrower to take with respect thereto.

          6.04 Payment of Obligations. Pay and discharge as the same shall become due and
payable, all its obligations and liabilities, including (a) all material tax liabilities,
assessments and governmental charges or levies upon it or its properties or assets, unless the same
are being contested in good faith by appropriate proceedings diligently conducted and adequate
reserves in accordance with GAAP are being maintained by Holdings, the Borrower or such Subsidiary;
(b) all lawful claims which, if unpaid, would by law become a Lien upon its property (except as
otherwise permitted by Section 7.01); and (c) all Indebtedness, as and when due and
payable, but subject to any subordination provisions contained in any instrument or agreement
evidencing such Indebtedness and except, in the case of this clause (c), with respect to

 

 

Indebtedness not for borrowed money to the extent failure to so pay and discharge could not
reasonably be expected to have a Material Adverse Effect.

          6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force
and effect its legal existence and good standing under the Laws of the jurisdiction of its
organization except in a transaction permitted by Section 7.04 or 7.05 and except,
in the case of any Loan Party other than Holdings and the Borrower, to the extent failure to do so
could not reasonably be expected to have a Material Adverse Effect; (b) take all reasonable action
to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the
normal conduct of its business, except to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered
patents, trademarks, trade names and service marks, the non-preservation of which could reasonably
be expected to have a Material Adverse Effect.

          6.06 Maintenance of Properties. (a) Maintain and preserve all of its material
properties and equipment necessary in the operation of its business in good working order and
condition, ordinary wear and tear excepted and (b) make all necessary repairs thereto and renewals
and replacements thereof except, in each case with respect to clause (a) and (b),
where the failure to do so could not reasonably be expected to have a Material Adverse Effect.

          6.07 Maintenance of Insurance. Maintain with financially sound and reputable
insurance companies not Affiliates of the Borrower, insurance with respect to its properties and
business against loss or damage of the kinds customarily insured against by Persons engaged in the
same or similar business, of such types and in such amounts as are customarily carried under
similar circumstances by such other Persons and providing in the case of all material insurance
policies for not less than 10 days’ prior notice to the Administrative Agent of termination, lapse
or cancellation of such insurance.

          6.08 Compliance with Laws. Comply in all material respects with the requirements of
all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or
property, except in such instances in which (a) such requirement of Law or order, writ, injunction
or decree is being contested in good faith by appropriate proceedings diligently conducted; or (b)
the failure to comply therewith could not reasonably be expected to have a Material Adverse Effect.

          6.09 Books and Records. (a) Maintain proper books of record and account, in which
full, true and correct entries in conformity with GAAP consistently applied shall be made of all
financial transactions and matters involving the assets and business of Holdings, the Borrower or
such Subsidiary, as the case may be, subject to normal adjustments at the end of fiscal periods;
and (b) maintain such books of record and account in material conformity with all applicable
requirements of any Governmental Authority having regulatory jurisdiction over the Borrower or such
Subsidiary, as the case may be.

          6.10 Inspection Rights. Permit representatives and independent contractors (to the
extent that such independent contractors have agreed to be bound by the terms of Section 10.07 as
set forth therein) of each Agent and each Lender to visit and inspect any of its properties, to
examine its corporate, financial and operating records, and make copies thereof or

 

 

abstracts therefrom, and to discuss its affairs, finances and accounts with its directors,
officers, and independent public accountants, all at the expense of the Borrower and at such
reasonable times during normal business hours and as often as may be reasonably desired, upon
reasonable advance notice to the Borrower; provided, however, that when an Event of
Default exists any Agent or any Lender (or any of their respective representatives or independent
contractors) may do any of the foregoing at the expense of the Borrower at any time during normal
business hours and without advance notice; provided further that in all cases the
Information obtained during such visits and inspections shall be subject to the provisions of
Section 10.07.

          6.11 Use of Proceeds. Use the proceeds of the Credit Extensions for (a) the
Refinancing and the making of payments to the FCC for Auction 66, (b) the payment of fees and
expenses incurred in connection with the Transaction and (c) acquisitions, acquisition-related
build-outs, Investments, working capital and general corporate purposes in each case not in
contravention of any Law or of any Loan Document.

          6.12 Covenant to Guarantee Obligations and Give Security. (a) Upon the formation or
acquisition of any new direct or indirect Subsidiaries (other than a Disqualified Subsidiary) by
any Loan Party, Holdings or the Borrower shall, in each case at its own expense (provided,
that upon request of the Borrower, the time period for complying with any provision of this
Section 6.12(a) may be extended by the Administrative Agent in its discretion, up to an
additional 15 days):

     (i) within 15 days after such formation or acquisition, cause each such Subsidiary
(other than, to the extent material adverse tax consequences would otherwise result, any
Subsidiary that is a CFC), and cause each direct and indirect parent of such Subsidiary (if
it has not already done so), to duly execute and deliver to the Administrative Agent a
guaranty or guaranty supplement, in form and substance satisfactory to the Administrative
Agent, guaranteeing the other Loan Parties’ obligations under the Loan Documents,

     (ii) within 15 days after such formation or acquisition, furnish to the Administrative
Agent a description of the real and personal properties of such Subsidiary in detail
satisfactory to the Administrative Agent,

     (iii) within 30 days after such formation or acquisition, cause such Subsidiary (other
than, to the extent material adverse tax consequences would otherwise result, any Subsidiary
that is a CFC) and each direct and indirect parent of such Subsidiary (if it has not already
done so) to duly execute and deliver, to the Administrative Agent, with respect solely to
owned personal property, pledges, assignments, Security Agreement Supplements, IP Security
Agreement Supplements and other security and pledge agreements, as reasonably specified by
and in form and substance reasonably satisfactory to the Administrative Agent (including
delivery of all Pledged Equity in and of such Subsidiary, and other instruments of the type
specified in Section 4.01(a)(iii)), securing payment of all the Obligations of such
Subsidiary or such parent, as the case may be, under the Loan Documents and constituting
Liens on all such owned properties (to the extent such properties are of a type purported to
be subject to the Liens created under the Collateral Documents),

 

 

     (iv) within 30 days after such formation or acquisition, take, and cause such
Subsidiary (other than, to the extent material adverse tax consequences would otherwise
result, any CFC) and each direct and indirect parent of such Subsidiary (if it has not
already done so) to take, whatever action (including the recording of mortgages, the filing
of Uniform Commercial Code financing statements, the giving of notices and the endorsement
of notices on title documents) may be necessary or advisable in the opinion of the
Administrative Agent to vest in the Administrative Agent (or in any representative of the
Administrative Agent designated by it) valid and subsisting Liens on the owned personal
properties purported to be subject to the pledges, assignments, Security Agreement
Supplements, IP Security Agreement Supplements and security and pledge agreements delivered
pursuant to this Section 6.12, enforceable against all third parties in accordance
with their terms,

     (v) within 60 days after the request of the Administrative Agent in its sole discretion
(if such request is made within 30 days after receipt by the Administrative Agent of the
information referred to in clause (ii) above), deliver to the Administrative Agent a
signed copy of a favorable opinion, addressed to the Administrative Agent and the other
Secured Parties, of counsel for the Loan Parties reasonably acceptable to the Administrative
Agent as to the matters contained in clauses (i), (iii) and (iv)
above, and as to such other matters as the Administrative Agent may reasonably request,

          (b) Upon the acquisition of any owned property of the type not excluded from the definition of
“Collateral” under the Collateral Documents by any Loan Party, and such property, in the judgment
of the Administrative Agent, shall not already be subject to a perfected first priority security
interest in favor of the Administrative Agent for the benefit of the Secured Parties, then Holdings
or the Borrower shall, at its own expense (provided, that upon request of the Borrower, the
time period for complying with any provision of this Section 6.12(b) may be extended by the
Administrative Agent in its discretion, up to an additional 15 days):

     (i) within 15 days after such acquisition, furnish to the Administrative Agent a
description of the property so acquired in detail satisfactory to the Administrative Agent,

     (ii) within 15 days after such acquisition, cause the applicable Loan Party to duly
execute and deliver to the Administrative Agent Security Agreement Supplements, IP Security
Agreement Supplements and other security and pledge agreements, as specified by and in form
and substance satisfactory to the Administrative Agent, securing payment of all the
Obligations of the applicable Loan Party under the Loan Documents and constituting Liens on
all such properties subject to the terms set forth in the Security Agreement,

     (iii) within 30 days after such acquisition, cause the applicable Loan Party to take
whatever action (including the filing of Uniform Commercial Code financing statements, the
giving of notices and the endorsement of notices on title documents) may be necessary or
advisable in the opinion of the Administrative Agent to vest in the Administrative Agent (or
in any representative of the Administrative Agent designated by it) valid and subsisting
Liens on such property, enforceable against all third parties,

 

 

     (iv) within 60 days after the request of the Administrative Agent in its sole
discretion (if such request is made within 30 days after receipt by the Administrative Agent
of the information referred to in clause (i) above), deliver to the Administrative
Agent a signed copy of a favorable opinion, addressed to the Administrative Agent and the
other Secured Parties, of counsel for the Loan Parties reasonably acceptable to the
Administrative Agent as to the matters contained in clauses (ii) and (iii)
above and as to such other matters as the Administrative Agent may reasonably request, and

          (c) Upon the request of the Administrative Agent following the occurrence and during the
continuance of an Event of Default, the Borrower shall, at the Borrower’s expense:

     (i) within 10 days after such request, furnish to the Administrative Agent a
description of the real and personal properties of the Loan Parties and their respective
Subsidiaries in detail satisfactory to the Administrative Agent,

     (ii) within 15 days after such request, duly execute and deliver, and cause each Loan
Party and each Subsidiary of a Loan Party (other than, to the extent that material adverse
tax consequences would otherwise result, any CFC) to duly execute and deliver, to the
Administrative Agent deeds of trust, trust deeds, mortgages, Security Agreement Supplements,
IP Security Agreement Supplements and other security and pledge agreements, as specified by
and in form and substance reasonably satisfactory to the Administrative Agent (including
delivery of all Pledged Equity Interests in and of any Subsidiary, and other instruments of
the type specified in Section 4.01(a)(iii)), securing payment of all the Obligations
of the applicable Loan Party under the Loan Documents and constituting Liens on all such
properties,

     (iii) within 30 days after such request, take, and cause each Loan Party and each
Subsidiary (other than, to the extent that material adverse tax consequences would result,
any CFC) of a Loan Party to take, whatever action (including the recording of mortgages, the
filing of Uniform Commercial Code financing statements, the giving of notices and the
endorsement of notices on title documents) may be necessary or advisable in the opinion of
the Administrative Agent to vest in the Administrative Agent (or in any representative of
the Administrative Agent designated by it) valid and subsisting Liens on the properties
purported to be subject to the deeds of trust, trust deeds, mortgages, Security Agreement
Supplements, IP Security Agreement Supplements and security and pledge agreements delivered
pursuant to this Section 6.12, enforceable against all third parties in accordance
with their terms,

     (iv) within 60 days after the request of the Administrative Agent in its sole
discretion, deliver to the Administrative Agent a signed copy of a favorable opinion,
addressed to the Administrative Agent and the other Secured Parties, of counsel for the Loan
Parties reasonably acceptable to the Administrative Agent as to the matters contained in
clauses (ii) and (iii) above, and as to such other matters as the
Administrative Agent may reasonably request, and

 

 

     (v) as promptly as practicable after such request, deliver, upon the request of the
Administrative Agent in its sole discretion, to the Administrative Agent with respect to
each parcel of real property owned by the Borrower and its Subsidiaries, title reports,
surveys and engineering, soils and other reports, and environmental assessment reports, each
in scope, form and substance satisfactory to the Administrative Agent, provided,
however, that to the extent that any Loan Party or any of its Subsidiaries shall
have otherwise received any of the foregoing items with respect to such real property, such
items shall, promptly after the receipt thereof, be delivered to the Administrative Agent.

          6.13 Compliance with Environmental Laws. Comply, and cause any sub-lessees of
Holdings and its Subsidiaries to comply, in all respects, with all applicable Environmental Laws
and Environmental Permits; obtain and renew all Environmental Permits necessary for its operations
and properties; and conduct any investigation, study, sampling and testing, and undertake any
cleanup, removal, remedial or other action necessary to remove and clean up all Hazardous Materials
from any of its properties, in accordance with the requirements of all Environmental Laws, except,
in each case, to the extent that any failure to do so could not, either individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect; provided,
however, that none of Holdings, the Borrower or any of their Subsidiaries shall be required
to undertake any such cleanup, removal, remedial or other action to the extent that its obligation
to do so is being contested in good faith and by proper proceedings and appropriate reserves are
being maintained with respect to such circumstances.

          6.14 Provision and Preparation of Environmental Reports. At the reasonable request of
the Required Lenders from time to time, including if reasonably requested in connection with any
acquisition of owned real property, provide to the Lenders (a) within 15 days (or such longer
period as may be reasonably necessary to respond to a specific request) after such request any
existing environmental site assessment reports for any of its properties described in such request
and (b) within 60 days (or such longer period as may be reasonably necessary to respond to a
specific request) after the reasonable request of the Required Lenders following receipt and review
of such existing reports, an environmental site assessment report for any of its properties
described in such request under this clause (b), prepared by an environmental consulting
firm acceptable to the Administrative Agent, indicating the presence or absence of Hazardous
Materials and the estimated cost of any compliance, removal or remedial action in connection with
any Hazardous Materials on such properties; without limiting the generality of the foregoing, if
the Administrative Agent determines at any time that a material risk exists that any such report
will not be provided within the time referred to above, the Administrative Agent may retain an
environmental consulting firm to prepare such report at the expense of the Borrower, and the
Borrower hereby agrees to and agrees to cause any Subsidiary that owns any property described in
such request to cooperate fully with the Administrative Agent and such environmental consulting
firm in their preparation of such environmental assessment report, including permitting any of
their representatives to visit and inspect the affected properties at reasonable times. If
reasonably requested by the Borrower, the Borrower shall be entitled to have a copy of such
environmental assessment report and access to the data relating thereto.

          6.15 Further Assurances. Promptly upon request by the Administrative Agent, or any
Lender through the Administrative Agent, (a) correct any material defect or error that may

 

 

be discovered in any Loan Document or in the execution, acknowledgment, filing or recordation
thereof, and (b) do, execute, acknowledge, deliver, record, re-record, file, re-file, register and
re-register any and all such further acts, deeds, certificates, assurances and other instruments as
the Administrative Agent, or any Lender through the Administrative Agent, may reasonably require
from time to time in order to (i) carry out more effectively the purposes of the Loan Documents,
(ii) to the fullest extent permitted by applicable law, subject any Loan Party’s owned properties,
assets, rights or interests to the Liens now or hereafter intended to be created by any of the
Collateral Documents, (iii) perfect and maintain the validity, effectiveness and priority of any of
the Collateral Documents and any of the Liens intended to be created thereunder and (iv) assure,
convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured
Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under
any Loan Document or under any other instrument executed in connection with any Loan Document to
which any Loan Party or any of its Subsidiaries is or is to be a party, and cause each of its
Subsidiaries to do so.

          6.16 Compliance with Terms of Leaseholds. Make all payments and otherwise perform all
obligations in respect of all leases of real property to which Holdings, or any of their
Subsidiaries is a party, keep such leases in full force and effect and not allow such leases to
lapse or be terminated or any rights to renew such leases to be forfeited or cancelled, notify the
Administrative Agent of any default by any party with respect to such leases and cooperate with the
Administrative Agent in all respects to cure any such default, and cause each of its Subsidiaries
to do so, except, in any case, where the failure to do so, either individually or in the aggregate,
could not be reasonably likely to have a Material Adverse Effect.

          6.17 Interest Rate Hedging. Enter into prior to December 31, 2006, and maintain at
all times thereafter, interest rate Swap Contracts on terms and with Persons acceptable to the
Administrative Agent, covering a notional amount such that at least 50% of Indebtedness for
borrowed money (other than Indebtedness of a Disqualified Subsidiary) at all times bears interest
at a fixed rate and providing for such Persons to make payments thereunder for a period of no less
than two years.

          6.18 Lien Searches. Promptly following receipt of the acknowledgment copy of any
financing statements filed under the Uniform Commercial Code in any jurisdiction by or on behalf
of the Secured Parties, deliver to the Administrative Agent completed requests for information
listing such financing statement and all other effective financing statements filed in such
jurisdiction that name any Loan Party as debtor, together with copies of such other financing
statements.

          6.19 Cash Collateral Accounts. (a) Maintain the Cash Collateral Account in accordance
with the terms set forth in the definition of “Cash Collateral Account” and (b) maintain all other
deposit and securities accounts with Bank of America or another commercial bank located in the
United States, which has (i) accepted the assignment of such accounts to the Collateral Agent for
the benefit of the Secured Parties pursuant to the terms of and except as otherwise permitted
pursuant to the Security Agreement and (ii) within 60 days after the date of this Agreement,
acknowledged the continued effectiveness of such Account Control Agreement (as defined in the
Security Agreement) with respect to the Obligations under this Agreement; provided that,
with respect to any such acknowledgement as to which the Loan

 

 

Parties have used commercially reasonable efforts to comply with the terms of this Section
6.19, the Loan Parties shall have an additional 30 days beyond the date set forth above to
either obtain such acknowledgement or move such account to a bank that has entered into an Account
Control Agreement.

          6.20 Material Contracts. Perform and observe all of the terms and provisions of each
Material Contract to be performed or observed by it, maintain each such Material Contract in full
force and effect, enforce each such Material Contract in accordance with its terms, take all such
action to such end as may be from time to time reasonably requested by the Administrative Agent
and, upon the reasonable request of the Administrative Agent, make to each other party to each such
Material Contract such demands and requests for information and reports or for action as any Loan
Party or any of its Subsidiaries is entitled to make under such Material Contract, and cause each
of its Subsidiaries to do so, except, in any case, where the failure to do so, either individually
or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

          6.21 Qualified Designated Entities, Joint Venture Entities and Disqualified Subsidiaries
Separateness. Comply with the following (provided that all references in this
Section 6.21 to “Qualified Designated Entities” shall mean Qualified Designated Entities in
which Holdings and its Subsidiaries have an Investment at the relevant time):

     (i) (A) Holdings and its Subsidiaries (other than a Disqualified Subsidiary) will, to
the extent that any such Subsidiary has one or more deposit accounts, maintain their own
deposit account or accounts, separate from those of each Qualified Designated Entity, each
Joint Venture Entity and each Disqualified Subsidiary, with commercial banking institutions
and will not commingle their funds with any Qualified Designated Entity, any Joint Venture
Entity or any Disqualified Subsidiary; and (B) each Disqualified Subsidiary and each
Controlled Joint Venture Entity, to the extent that any such Disqualified Subsidiary or
Controlled Joint Venture Entity has one or more deposit accounts, will maintain its own
deposit account or accounts, separate from those of each Qualified Designated Entity and
each of Holdings and each of its other Subsidiaries, with commercial banking institutions
and will not commingle its funds with any Qualified Designated Entity or Holdings or any of
its other Subsidiaries;

     (ii) (A) Holdings and its Subsidiaries (other than a Disqualified Subsidiary) will
maintain a separate address from the address of each Qualified Designated Entity, each Joint
Venture Entity and each Disqualified Subsidiary, or to the extent any Qualified Designated
Entity, Joint Venture Entity or Disqualified Subsidiary may have offices in the same
location as any of Holdings and its other Subsidiaries, maintain a fair and appropriate
allocation of overhead costs among them, with each such entity bearing its fair share of
such expense; and (B) each Disqualified Subsidiary and each Controlled Joint Venture Entity
will maintain a separate address from the address of each Qualified Designated Entity and
each of Holdings and its other Subsidiaries, or to the extent any Disqualified Subsidiary or
Controlled Joint Venture Entity may have offices in the same location as any Qualified
Designated Entity or any of Holdings and its other Subsidiaries, maintain a fair and
appropriate allocation of overhead costs among them, with each such entity bearing its fair
share of such expense;

 

 

     (iii) each Disqualified Subsidiary and each Controlled Joint Venture Entity will issue
separate financial statements prepared not less frequently than quarterly and prepared in
accordance with GAAP (except for the omission of certain footnotes and other presentation
items required by GAAP with respect to audited financial statements), which financial
statements need not be separately audited or reviewed by an independent accounting firm;

     (iv) each Disqualified Subsidiary and each Controlled Joint Venture Entity will be a
corporation, limited liability company or limited partnership and each Disqualified
Subsidiary and each Controlled Joint Venture Entity will conduct its affairs in accordance
with its certificate of incorporation or formation and by-laws or limited liability company
agreement or partnership agreement (or similar constitutive documents) and observe all
necessary, appropriate and customary company (or corporate or partnership) formalities,
including, but not limited to, holding all regular and special members’ and board of
managers’ (or stockholders’ and directors’, partners’ or other similar Persons’) meetings
appropriate to authorize company (or corporate or partnership) action, keeping separate and
accurate minutes of its meetings, passing all resolutions or consents necessary to authorize
actions taken or to be taken, and maintaining accurate and separate books, records and
accounts, including, but not limited to, payroll and intercompany transaction accounts, to
the extent applicable;

     (v) (A) no Disqualified Subsidiary or Controlled Joint Venture Entity will assume or
guarantee any of the liabilities of, or pledge any of its assets for the benefit of any of,
Holdings and its other Subsidiaries or any Qualified Designated Entity (other than
assumptions, Guarantees or pledges that are made or given prior to such entity’s becoming a
Disqualified Subsidiary or Controlled Joint Venture Entity or that are associated with
assets transferred to a Qualified Designated Entity, Disqualified Subsidiary or Joint
Venture Entity in exchange for, or contributed in respect of the issuance of, any Equity
Interests in or other consideration from such entity pursuant to Section 7.05(r) or
transferred by such entity to Holdings or its Subsidiaries), (B) each of Holdings and its
Subsidiaries (other than a Disqualified Subsidiary) will not assume or guarantee any of the
liabilities of, or pledge any of its assets for, the benefit of any Qualified Designated
Entity, Joint Venture Entity or Disqualified Subsidiary or hold out its credit as being
available to satisfy the obligations of any Qualified Designated Entity, Joint Venture
Entity or Disqualified Subsidiary (which shall be deemed not to refer to any disclosure by
Holdings and its Subsidiaries of Investments or obligations that Holdings or its
Subsidiaries are permitted to make in or incur with respect to Qualified Designated
Entities, Joint Venture Entities and Disqualified Subsidiaries in compliance with this
Agreement), other than with respect to Permitted Guarantees and (C) no Disqualified
Subsidiary or Controlled Joint Venture Entity will hold out the credit of Holdings and its
other Subsidiaries as being able to satisfy the obligations of such Disqualified Subsidiary
or Controlled Joint Venture Entity (which shall be deemed not to refer to any disclosure by
a Disqualified Subsidiary or Controlled Joint Venture Entity of Investments or obligations
that Holdings or its Subsidiaries are permitted to make in or incur with respect to
Disqualified Subsidiaries and Controlled Joint Venture Entities in compliance with this
Agreement), other than with respect to Permitted Guarantees;

 

 

     (vi) (A) Holdings and each of its Subsidiaries (other than a Disqualified Subsidiary)
will not authorize the use of its name or trademarks or service marks by any Disqualified
Subsidiary, Qualified Designated Entity or Joint Venture Entity except pursuant to a written
license agreement; (B) each Disqualified Subsidiary and Controlled Joint Venture Entity will
not authorize the use of its name or trademarks or service marks by any Qualified Designated
Entity except pursuant to a written license agreement; and (C) each Qualified Designated
Entity, Disqualified Subsidiary and Joint Venture Entity may use the same domain name for
electronic mail as Holdings and its Subsidiaries;

     (vii) (A) None of Holdings or any of its Subsidiaries (other than a Disqualified
Subsidiary) will conduct a material amount of its own business with suppliers of goods and
services, lenders or purchasers of securities in the name of Qualified Designated Entities,
Joint Venture Entities or Disqualified Subsidiaries, provided, however, that
Holdings and its Subsidiaries may provide services and, to the extent permitted under
Section 7.05, inventory, equipment and other property, to Qualified Designated
Entities, Joint Venture Entities and Disqualified Subsidiaries and may conduct the business
of Qualified Designated Entities, Joint Venture Entities and Disqualified Subsidiaries by or
on behalf of such Qualified Designated Entities, Joint Venture Entities or Disqualified
Subsidiaries, as applicable, under a management or services agreement so long as, except as
permitted under Section 6.21(vi), any material business so conducted is conducted in
the name of such Qualified Designated Entity, Joint Venture Entity or Disqualified
Subsidiary, as applicable and (B) except as permitted under Section 6.21(vi), no
Disqualified Subsidiary or Controlled Joint Venture Entity will conduct a material amount of
its own business with suppliers of goods and services, lenders or purchasers of securities
in the name of Holdings or any of its other Subsidiaries or any Qualified Designated Entity;

     (viii) If Holdings or any of its Subsidiaries obtains actual knowledge that any
Qualified Designated Entity or Joint Venture Entity has represented or indicated to any
supplier of goods and services to, lender to or purchaser of securities of such Qualified
Designated Entity or Joint Venture Entity that the credit of Holdings and its Subsidiaries
is available to satisfy the obligations of such Qualified Designated Entity or Joint Venture
Entity (which shall be deemed not to refer to any disclosure by a Qualified Designated
Entity or Joint Venture Entity of Investments or obligations that Holdings or its
Subsidiaries are permitted to make in or incur with respect to Qualified Designated Entities
and Joint Venture Entities in compliance with this Agreement), other than in respect of
Permitted Guarantees, then Holdings and its Subsidiaries shall take such action as shall be
reasonable in the circumstances, which may include providing written notice to any Person to
whom such representation or indication was made, to make clear that the credit of Holdings
and its Subsidiaries is not available to satisfy the obligations of such Qualified
Designated Entity or Joint Venture Entity, other than in respect of Permitted Guarantees;
and

     (ix) Holdings and its Subsidiaries will, (A) to the extent each may reasonably be able
to do so without materially adversely affecting any license, license-related application or
other governmental relationship, include in one or more Qualified Designated Entity
Agreements with each Qualified Designated Entity or analogous

 

 

agreements with each Joint Venture Entity entered into after the date of this Agreement
(other than the agreements with respect to the initial Investment by Holdings and its
Subsidiaries in an Oregon Entity), whether a limited liability company agreement,
partnership agreement, loan or credit agreement, or otherwise, provisions under which such
Qualified Designated Entity or Joint Venture Entity will agree to comply, and to cause its
Subsidiaries to comply, with separateness covenants for the benefit of Holdings and its
Subsidiaries not materially dissimilar from those contained in Sections 6.21(i)
through 6.21(viii) hereof and (B) in any circumstance where Holdings or such
Subsidiary shall have the right, as a result of its ownership of an Investment in a
Qualified Designated Entity or Joint Venture Entity, to consent to the incurrence of
Indebtedness owed to a third party by such entity, require as a condition to granting such
consent (but only in the case of Indebtedness for borrowed money of such Joint Venture
Entity or Qualified Designated Entity in excess of $5,000,000 in the aggregate) that the
third-party lender acknowledge that in extending credit to such Qualified Designated Entity
or Joint Venture Entity such lender is not relying on the credit of Holdings or any of its
Subsidiaries (except to the limited extent of any Permitted Guarantees and of any
Investments that Holdings or its Subsidiaries are obligated to make in any such entities in
compliance with this Agreement).

          6.22 Holding Company. Cause the business and operations of Holdings and its
Subsidiaries to be conducted primarily through the Subsidiaries of Holdings and Qualified
Designated Entities and Joint Venture Entities in which Loan Parties have made Investments in
compliance with this Agreement.

          6.23
Qualified Designated Entity Security; Rights as a Creditor. (a) As promptly as
practicable, with respect to each Qualified Designated Entity in which any Loan Party has made an
Investment pursuant to Section 7.03(l) or Section 7.03(n) that owes Indebtedness
(other than Permitted ANB Unsecured Investments and Permitted QDE Unsecured Investments) to a Loan
Party, take, and use commercially reasonable efforts to cause each Qualified Designated Entity to
take, all action reasonably necessary or, in the reasonable judgment of the Administrative Agent,
desirable to perfect the security interest of any Loan Party in the assets (but excluding FCC
Licenses and non-owned real property and subject to reasonable exceptions for other property the
value of which does not exceed 10% of the total assets of such Qualified Designated Entity) of such
Qualified Designated Entity securing Indebtedness (other than Permitted ANB Unsecured Investments
and Permitted QDE Unsecured Investments) owed by such Qualified Designated Entity to such Loan
Party, as required by Sections 7.03(l) and 7.03(n).

          (b) Diligently enforce the provisions of the ANB Credit Documents and any QDE Credit Documents
by pursuing such legal remedies as the Borrower deems appropriate in its reasonable business
judgment (taking into account the collateral interest of the Lenders in the Loan Parties’
Investments in the applicable Qualified Designated Entity, any unjust enrichment or other penalties
that may be or become payable to the FCC as a result of the exercise of legal remedies, and other
factors relevant to the value of such Investment) in the case of any material payment default, any
material breach of the restrictions on debt or liens or any material breach of the covenants to
grant and perfect security interests, in each case which has not been cured prior to the expiration
of the applicable grace period, if any.

 

 

ARTICLE VII

NEGATIVE COVENANTS

          So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding,
each of Holdings and the Borrower shall not, nor shall either of them permit any Subsidiary (other
than, in the case of Sections 7.01, 7.03, 7.04, 7.05, 7.06,
7.09, 7.14 and 7.17, a Disqualified Subsidiary) to, directly or indirectly:

          7.01 Liens. Create, incur, assume or suffer to exist any Lien upon any of its
property, assets or revenues, whether now owned or hereafter acquired, or sign or file or suffer to
exist under the Uniform Commercial Code of any jurisdiction a financing statement that names the
Borrower or any of its Subsidiaries as debtor, or sign or suffer to exist any security agreement
authorizing any secured party thereunder to file such financing statement, or assign any accounts
or other right to receive income, other than the following:

     (a) Liens pursuant to any Loan Document;

     (b) Liens existing on the date of this Agreement listed on Schedule 5.08(b) and
any renewals or extensions thereof, provided that (i) the property covered thereby
is not changed, (ii) the amount secured or benefited thereby is not increased and (iii) the
direct or any contingent obligor with respect thereto is not changed;

     (c) Liens for taxes, fees, assessments or other charges of a Governmental Authority not
yet due or which are being contested in good faith and by appropriate proceedings diligently
conducted, if adequate reserves with respect thereto are maintained on the books of the
applicable Person in accordance with GAAP;

     (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s, landlords’,
statutory, bankers, or other like Liens arising in the ordinary course of business which are
not overdue for a period of more than 60 days or which are being contested in good faith and
by appropriate proceedings diligently conducted, if adequate reserves with respect thereto
are maintained on the books of the applicable Person in accordance with GAAP;

     (e) pledges or deposits in the ordinary course of business in connection with workers’
compensation, unemployment insurance and other social security legislation, other than any
Lien imposed by ERISA;

     (f) Liens incurred or deposits made (including deposits with the FCC) to secure the
performance of tenders, bids, trade contracts and leases (other than Indebtedness),
statutory or regulatory obligations, surety bonds, government contracts, performance and
return of money bonds and other obligations of a like nature incurred in the ordinary course
of business in any case so long as the same does not secure Indebtedness for borrowed money;

 

 

     (g) easements, rights-of-way, restrictions, encroachments, leases, subleases and other
similar encumbrances affecting real property which, in the aggregate, are not substantial in
amount, and which do not in any case materially detract from the value of the property
subject thereto or materially interfere with the ordinary conduct of the business of the
applicable Person;

     (h) Liens securing judgments for the payment of money not constituting an Event of
Default under Section 8.01(h) or securing appeal or other surety bonds related to
such judgments;

     (i) Liens securing Indebtedness permitted under Section 7.02(a)(ii)(D);
provided that (i) in the case of Liens in respect of purchase money Indebtedness,
Capitalized Leases or Synthetic Lease Obligations, such Liens do not at any time encumber
any property other than the property financed by such Indebtedness or, if applicable,
subject to such Capitalized Lease, (ii) in the case of Liens in respect of purchase money
Indebtedness, the Indebtedness secured thereby does not exceed the cost or fair market
value, whichever is lower, of the property being acquired on the date of acquisition and
(iii) the sum of the Indebtedness secured by such Liens plus all Indebtedness
secured by Liens permitted under Section 7.01(q) does not exceed at any time
$150,000,000 in the aggregate;

     (j) Any (i) interest or title of a lessor or sublessor under any lease, (ii)
restriction or encumbrance that the interest or title of such lessor or sublessor may be
subject to or (iii) subordination of the interest of the lessee or sublessee under such
lease to any restriction or encumbrance referred to in the preceding clause (ii);

     (k) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;

     (l) Any zoning or similar law or right reserved to or vested in any governmental office
or agency to control or regulate the use of any real property;

     (m) Liens securing obligations (other than obligations representing Indebtedness for
borrowed money) under operating, reciprocal easement or similar agreements entered into in
the ordinary course of business;

     (n) Liens on property of a Person existing at the time such Person is merged into or
consolidated with Holdings or any Subsidiary of Holdings or becomes a Subsidiary of
Holdings; provided that such Liens were not created in contemplation of such merger,
consolidation or investment and do not extend to any assets other than those of the Person
merged into or consolidated with Holdings or such Subsidiary or acquired by Holdings or such
Subsidiary;

     (o) Liens securing Indebtedness permitted under Section 7.02(a)(ii)(F) so long
as such Liens are limited to the property and assets of the relevant Disqualified
Subsidiary;

 

 

     (p) Liens on cash collateral not in excess of $15,000,000 in the aggregate at any time
securing letters of credit; and

     (q) other Liens covering Collateral not existing on the date hereof securing
Indebtedness not to exceed in the aggregate at any time $25,000,000.

          7.02 Indebtedness. (a) Create, incur, assume or suffer to exist (collectively,
“Incur” and “Incurrence” has a meaning correlative thereto) any Indebtedness; provided,
however, that Holdings, the Borrower or any Subsidiary Guarantor may Incur Indebtedness
that satisfies the criteria set forth in clauses (a), (b) and (c) of the definition of
Permitted Unsecured Debt, if, after giving effect to the creation, incurrence or assumption of such
Indebtedness and the receipt and application of the proceeds therefrom, (x) no Default exists or
would result therefrom, (y) Holdings is in Pro Forma Compliance with the Senior Secured Leverage
Covenant and (z) the Consolidated Leverage Ratio would be less than the Maximum Incurrence Ratio
(the “Incurrence Test”); provided, that as used in the foregoing clause (x), the
term “Default” excludes any Default in the performance of a Revolver Maintenance Covenant. The
provisions of the preceding sentence shall not prohibit the Incurrence of any of the following
items of Indebtedness:

     (i) in the case of Holdings and the Borrower:

     (A) Indebtedness in respect of Swap Contracts entered into pursuant to
Section 6.17;

     (B) Indebtedness owed to a Subsidiary Guarantor, which Indebtedness (x) shall
constitute Pledged Debt, (y) shall be subordinated to the Loan Parties’ Obligations
under the Loan Documents on terms reasonably acceptable to the Administrative Agent
and (z) shall be evidenced by promissory notes in form and substance reasonably
satisfactory to the Administrative Agent and such promissory notes shall be pledged
as security for the Obligations of the holder thereof under the Loan Documents and
delivered to the Administrative Agent pursuant to the terms of the Security
Agreement;

     (C) any combination of Permitted Unsecured Debt and Permitted Bridge Debt in an
aggregate principal amount outstanding at any time not to exceed $1,200,000,000; and

     (D) in the case of Holdings only, Permitted Equity Forwards, and

     (ii) in the case of Holdings and its Subsidiaries,

     (A) Indebtedness under the Loan Documents, including any Incremental Facility;

     (B) Guarantees of the Borrower or any Guarantor in respect of Indebtedness
otherwise permitted under this Agreement of the Borrower or any other Guarantor
(excluding, for the avoidance of doubt, Guarantees of Indebtedness described in
subclause (F) of this clause (a)(ii));

 

 

     (C) obligations (contingent or otherwise) of Holdings or any Subsidiary
existing or arising under any Swap Contract, provided that (i) such
obligations are (or were) entered into by such Person in the ordinary course of
business for the purpose of directly mitigating risks associated with liabilities,
commitments, investments, assets, or property held or reasonably anticipated by such
Person, or changes in the value of securities issued by such Person, and not for
purposes of speculation or taking a “market view”; and (ii) such Swap Contract does
not contain any provision exonerating the non-defaulting party from its obligation
to make payments on outstanding transactions to the defaulting party;

     (D) Indebtedness in respect of (x) Capitalized Leases, Synthetic Lease
Obligations and purchase money obligations for fixed or capital assets within the
limitations set forth in Section 7.01(i) and (y) not more than $25,000,000
of secured Indebtedness for borrowed money; provided, however, that
the aggregate amount of all such Indebtedness at any one time outstanding pursuant
to this subclause (D) shall not exceed $150,000,000;

     (E) Indebtedness owed to a Loan Party, which Indebtedness (x) shall constitute
Pledged Debt, (y) shall be on terms (including subordination terms subordinating
such Indebtedness to the Obligations) reasonably acceptable to the Administrative
Agent and (z) shall be evidenced by promissory notes in form and substance
satisfactory to the Administrative Agent and such promissory notes shall be pledged
as security for the Obligations of the holder thereof under the Loan Documents and
delivered to the Administrative Agent;

     (F) Indebtedness of any Disqualified Subsidiary owed to Persons other than Loan
Parties and existing at the time such Disqualified Subsidiary becomes a wholly owned
Subsidiary of Holdings pursuant to Section 7.03(k), Section 7.03(l),
Section 7.03(n) or Section 7.03(o), so long as such Indebtedness (x)
does not exceed $200,000,000 in aggregate principal amount (excluding capitalized
interest on such Indebtedness) outstanding at any time for all such Indebtedness
owed to Persons other than Loan Parties and (y) other than with respect to Permitted
Guarantees, is non-recourse to Holdings and its other Subsidiaries, and any
refinancings, refundings, renewals or extensions thereof, provided that (1)
the amount of such Indebtedness is not increased at the time of such refinancing,
refunding, renewal or extension, (2) the direct or any contingent obligor with
respect thereto is not changed (and other than with respect to Permitted Guarantees,
such Indebtedness remains non-recourse to Holdings and its other Subsidiaries) and
(3) the Liens securing such Indebtedness do not extend to the assets of Holdings or
any of its other Subsidiaries;

     (G) To the extent permitted under Section 7.03(l), obligations to make
Investments in or loans to or to acquire Equity Interests in ANB Entities and
obligations to pay any management, origination or other similar fees to third
parties in connection therewith;

 

 

     (H) To the extent permitted under Section 7.03(k), Section
7.03(n) or Section 7.03(o), obligations to make Investments in or loans
to or to acquire Equity Interests in Joint Venture Entities or Qualified Designated
Entities or Disqualified Subsidiaries and obligations to pay any management,
origination or other similar fees to third parties in connection therewith;

     (I) Indebtedness consisting of reimbursement obligations in respect of letters
of credit having an aggregate face amount not in excess of $15,000,000 outstanding
secured by Liens permitted by Section 7.01(p);

     (J) Indebtedness constituting Permitted Guarantees; and

     (K) Other unsecured Indebtedness in an aggregate outstanding amount not to
exceed $5,000,000 at any time.

     (b) Whether or not otherwise permitted to do so by the provisions of Section 7.02(a),
at any time that any Revolving Credit Loan or Uncollateralized Letter of Credit shall be
outstanding, Holdings and the Borrower shall not, nor shall either of them permit any Subsidiary
to, directly or indirectly, create, incur, assume or suffer to exist any Indebtedness except
Indebtedness expressly permitted under clause (i) or clause (ii) of Section
7.02(a) unless, after giving effect to the Incurrence and the existence of such Indebtedness,
Holdings and its Subsidiaries are in compliance (and in the case of any such Incurrence, Pro Forma
Compliance) with the Revolver Maintenance Covenants.

          7.03 Investments. Make or hold any Investments or, in the case of obligations of
Holdings and its Subsidiaries with respect to a Qualified Designated Entity, Disqualified
Subsidiary or Joint Venture Entity, any obligation to make an Investment, except:

     (a) Investments held by Holdings or any of its Subsidiaries in the form of Cash
Equivalents;

     (b) (i) advances to officers, directors and employees of Holdings and Subsidiaries in
an aggregate amount not to exceed $2,000,000 at any time outstanding, for travel,
entertainment, relocation and analogous ordinary business purposes, (ii) notes or other
obligations not in excess of $5,000,000 in the aggregate of one or more officers, directors
or employees of Holdings or any Subsidiary in connection with such officers’, directors’ or
employees’ acquisition of shares of Holdings’ common stock pursuant to any equity incentive
plan, so long as no cash is actually advanced by Holdings or any Subsidiary to such
officers, directors or employees and (iii) cancellation of notes issued by one or more
officers, directors or employees of Holdings or any Subsidiary in connection with the
termination of such officers’, directors’ or employees’ employment or any put rights such
officers, directors or employees may have under employment or service agreements in an
aggregate amount not in excess of $5,000,000, so long as no cash was actually advanced by
Holdings or any Subsidiary to such officers, directors or employees;

     (c) equity Investments of the Borrower in any Guarantor and Investments of any
Guarantor in the Borrower or in another Guarantor;

 

 

     (d) Investments consisting of extensions of credit in the nature of accounts receivable
or notes receivable arising from the grant of trade credit in the ordinary course of
business, and Investments received in satisfaction or partial satisfaction thereof from
financially troubled account debtors to the extent reasonably necessary in order to prevent
or limit loss;

     (e) Guarantees permitted by Section 7.02(a)(ii)(B);

     (f) Investments existing on the date of this Agreement set forth on Schedule
5.08(d);

     (g) promissory notes and other non-cash consideration to the extent permitted to be
received in connection with a Disposition under Section 7.05;

     (h) Equity Interests that constitute security for, and are acquired in connection with
the enforcement of, Indebtedness or claims due or owing to Holdings or such Subsidiary;

     (i) Investments by Holdings or the Borrower in Swap Contracts permitted under
Section 7.02(a)(i)(A) or (D) and Section 7.02(a)(ii)(C);

     (j) Investments in Loan Parties consisting of intercompany debt permitted under
Section 7.02(a)(i)(B) or 7.02(a)(ii)(E), in each case, for the avoidance of
doubt, other than investments in any Disqualified Subsidiary;

     (k) Investments or obligations to make Investments (other than Investments or
obligations to make Investments in any Qualified Designated Entity in which any Investment
under Section 7.03(n) has previously been made, unless (i) all amounts invested in
such Qualified Designated Entity prior to the date of an Investment therein under this
Section 7.03(k) would be able to be invested therein on such date in compliance with
this Section 7.03(k) or (ii) such Investment constitutes an Acquisition);
provided that, with respect to each Investment made or obligation to make an
Investment incurred pursuant to this Section 7.03(k):

     (A) each Loan Party and any newly created or acquired Subsidiary shall comply
with the requirements of Section 6.12, unless such new Subsidiary is a
Disqualified Subsidiary;

     (B) the lines of business of the Person to be (or the property and assets of
which are to be) purchased or otherwise acquired or in which such Investment is made
shall be substantially one or more of the same lines of business described in
Section 7.07;

     (C) such Investment or obligation to make an Investment shall not include or
result in any contingent liabilities that could reasonably be expected to be
material to the business, financial condition, operations or prospects of Holdings
and its Subsidiaries, taken as a whole (as determined in good faith by the board of
directors (or the persons performing similar functions) of Holdings or

 

 

such Subsidiary if the board of directors is otherwise approving such
transaction and, in each other case, by a Responsible Officer), other than (1)
Permitted Guarantees, (2) Excluded Assumed Liabilities, (3) future obligations to
invest in or to lend or purchase Equity Interests of a Joint Venture Entity or
Qualified Designated Entity permitted under subclause (G) hereof, and (4) if
any new Subsidiary resulting from such Investment is a Disqualified Subsidiary,
obligations of such Disqualified Subsidiary of the type permitted under Section
7.02(a)(ii)(F);

     (D) immediately before and immediately after giving effect to each such
Investment or incurrence of an obligation to make an investment, the Loan Parties
shall have an aggregate amount of $100,000,000 in any combination of available cash,
Cash Equivalents held by Loan Parties free and clear of all Liens other than the
Liens created under the Collateral Documents and bankers’ or similar liens and
unused Revolving Credit Commitments which are then available to be drawn in
accordance with the requirements of Section 4.02; provided that the
requirements of this clause (D) shall not apply to an acquisition by the
Borrower of (1) the remaining portion of the Equity Interests of ANB 1 that the
Borrower did not own as of July 22, 2005 for a purchase price not exceeding
$6,000,000, if at the time of such acquisition ANB 1 and ANB 1 License do not owe to
any Persons other than Loan Parties Indebtedness in an aggregate amount in excess of
$5,000,000 or (2) the remaining portion of the Equity Interests of any other Joint
Venture Entity or Qualified Designated Entity if such acquisition is made in
exchange for common Equity Interests of Holdings or Qualified Preferred Stock (or
any combination thereof) and an amount of cash that does not exceed, when taken
together with all other obligations to purchase Equity Interests of Joint Venture
Entities and Qualified Designated Entities that are not Stock-Pay Obligations,
$20,000,000 in amount at any time;

     (E) (1) immediately before and immediately after giving pro forma effect to any
such Investment, no Default shall have occurred and be continuing and (2)
immediately after giving effect to such purchase or other acquisition, Holdings and
its Subsidiaries (including any Qualified Designated Entities and Joint Venture
Entities that are required under GAAP to be consolidated with Holdings and its
Subsidiaries) shall be in Pro Forma Compliance with (x) in the case of any
Investment that results in the Incurrence of Indebtedness not otherwise permitted
under Sections 7.02(a)(i) or (ii) by Holdings or any of its Subsidiaries (or
any Qualified Designated Entity or Joint Venture Entity that is required in
accordance with GAAP to be consolidated with Holdings and its Subsidiaries, unless
such Indebtedness is owed to a Loan Party), the Incurrence Test and (y) the Senior
Secured Leverage Covenant;

     (F) if such newly-acquired Subsidiary is a Disqualified Subsidiary, the sole
consideration paid for the acquisition of the remaining Equity Interests of such
former Qualified Designated Entity or Joint Venture Entity shall be common Equity
Interests of Holdings or Qualified Preferred Stock (or any combination thereof)
plus, at the option of Holdings, (i) if such entity is an ANB Entity, an

 

 

amount in cash not in excess of that portion of the $325,000,000 permitted (in
accordance with clause (y) of Section 7.03(l)) to be invested in ANB
Entities that is at such time available to be so invested, (ii) if such entity is an
Oregon Entity, an amount in cash not in excess of that portion of the $85,000,000
permitted (in accordance with clause (y) of Section 7.03(o)) to be invested
in Oregon Entities at such time available to be so invested, (iii) if such entity is
a former Qualified Designated Entity under Section 7.03(n), an amount in
cash not in excess of the amount that would otherwise be permitted to be invested in
Qualified Designated Entities and Disqualified Subsidiaries pursuant to Section
7.03(n) that is at such time available to be so invested or (iv) otherwise, the
amount then available to be invested under subclause (G) of this Section
7.03(k);

     (G) the aggregate amount of all Investments made and obligations to make
Investments incurred pursuant to this Section 7.03(k) that do not constitute
Acquisitions from the Effective Date through the date of such Investment (which
amount shall be calculated excluding (1) any capitalized interest owed by a Person
in whom an Investment is made under this Section 7.03(k) to Loan Party, (2) Excluded
Assumed Liabilities and (3) Stock-Pay Obligations) shall not exceed the sum of
$150,000,000 plus the Available Cash Flow Basket as of such date;
provided that no more than $20,000,000 in the aggregate of Investments
pursuant to this Section 7.03(k) may take the form of Guarantees of
obligations of Joint Venture Entities or Qualified Designated Entities (excluding
Permitted Debt Put Rights); and

     (H) Holdings shall have delivered to the Administrative Agent, on behalf of the
Lenders, at least five Business Days prior to the date on which any such Investment
is to be consummated (in the case of an Investment in a Joint Venture Entity or
Qualified Designated Entity, only at the time of the initial Investment or
incurrence of an obligation to make an Investment therein or the initial Investment
or incurrence of an obligation to make an Investment therein pursuant to this
Section 7.03(k)), a certificate of a Responsible Officer, in form and
substance reasonably satisfactory to the Administrative Agent, certifying that all
of the requirements set forth in this Section 7.03(k) have been satisfied or
will be satisfied on or prior to the consummation of such purchase or other
acquisition and demonstrating the calculations used to determine such compliance;

     (l) (w) Investments (other than Guarantees or assumptions of debt which are not
Permitted Guarantees) by Holdings and its Subsidiaries in ANB Entities, (x) commitments to
lend to or invest in ANB Entities, (y) those portions of all put obligations to purchase
Equity Interests of ANB Entities that are not by their terms Stock-Pay Obligations (which
portions shall not exceed when taken together with all other portions of obligations to
purchase Equity Interests in respect of Qualified Designated Entities and Joint Venture
Entities that are not Stock-Pay Obligations, $20,000,000 in amount at any time) and (z)
payments of or obligations to pay management, origination or other similar fees or penalties
in connection with any of the foregoing, in an aggregate amount for all such Investments and
other obligations referred to in clauses (w), (x), (y) and
(z) outstanding at any time not to exceed in the aggregate $325,000,000 (which
amount shall

 

 

(i) be permanently reduced by amounts of the type referred to in clause (z)
once any such amount has been paid to a Person other than a Loan Party and (ii) be
calculated without giving effect to (A) any capitalized interest on obligations owed by any
ANB Entity to a Loan Party, (B) Excluded Assumed Liabilities and (C) Stock-Pay Obligations);
provided that, except for Permitted ANB Unsecured Investments, amounts invested
pursuant to this Section 7.03(l) after the date hereof must be in the form of
Investments consisting of loans to ANB 1 or ANB 1 License, or Investments resulting in
contractual obligations of ANB 1 or ANB 1 License to a Loan Party, in each case that are
secured by substantially all of the assets of ANB 1 and ANB 1 License (but excluding FCC
Licenses and non-owned real property) on the terms set forth in the ANB Credit Documents;
provided further that, with respect to each Investment made or other
obligation incurred pursuant to this Section 7.03(l):

     (A) such Investment or other obligation shall not include or result in any
contingent liabilities that could reasonably be expected to be material to the
business, financial condition, operations or prospects of Holdings and its
Subsidiaries, taken as a whole (as determined in good faith by the board of
directors (or persons performing similar functions) of Holdings or such Subsidiary
if the board of directors is otherwise approving such transaction and, in each other
case, by a Responsible Officer), other than in respect of Permitted Guarantees and
future obligations to invest in or to lend to or purchase Equity Interests of an ANB
Entity that do not in the aggregate when taken together with all other outstanding
Investments and obligations of a type referred to in this Section 7.03(l)
(excluding Stock-Pay Obligations, any capitalized interest on obligations owed by
any ANB Entity to a Loan Party and Excluded Assumed Liabilities) exceed
$325,000,000;

     (B) such Investment or other obligation shall be in or in respect of property
and assets which are part of, or in lines of business which are, substantially one
or more of the same lines of business as described in Section 7.07;

     (C) (1) immediately before and immediately after giving effect to such
Investment or other incurrence of such other obligation, the Loan Parties shall have
an aggregate amount of $100,000,000 (or, in the case of an Investment in ANB 1 or
ANB 1 License at a time when ANB 1 and ANB 1 License do not owe to any Persons other
than Loan Parties Indebtedness in an aggregate amount in excess of $5,000,000,
$50,000,000) in any combination of available cash, Cash Equivalents held by Loan
Parties free and clear of all Liens other than Liens created under the Collateral
Documents and bankers’ or similar liens and unused Revolving Credit Commitments
which are then available to be drawn in accordance with the requirements of
Section 4.02, (2) immediately before and immediately after giving pro forma
effect to any such Investment or other obligation, no Default shall have occurred
and be continuing and (3) immediately after giving effect to such Investment or
other obligation, Holdings and its Subsidiaries (including any Designated Entities
and Joint Venture Entities that are required under GAAP to be consolidated with
Holdings and its Subsidiaries) shall be in Pro Forma Compliance with (x) in the case
of any Investment that results in

 

 

the Incurrence of Indebtedness not otherwise permitted under Sections
7.02(a)(i) or (ii) by Holdings or any of its Subsidiaries (or any Qualified
Designated Entity or Joint Venture Entity that is required under GAAP to be
consolidated with Holdings and its Subsidiaries, unless such Indebtedness is owed to
a Loan Party), the Incurrence Test and (y) the Senior Secured Leverage Covenant; and

     (D) (1) Each of the Loan Parties shall comply with the requirements of
Section 6.12(b) as they relate to any Equity Interests, notes or other
property received by such Loan Party in connection with any Investment under this
Section 7.03(l), and (2) any Investment consisting of a loan or advance to
an ANB Entity (other than Permitted ANB Unsecured Investments) (x) shall be secured
by a perfected security interest in substantially all of the assets of such ANB
Entity (but excluding FCC Licenses and non-owned real property) pursuant to the
terms of the ANB Credit Documents and (y) shall be evidenced by a promissory note,
and all such promissory notes shall constitute Pledged Debt and shall, together with
all related collateral, be pledged as security for the Obligations of the holder
thereof under the Loan Documents and delivered to the Administrative Agent;

     (m) other Investments by Holdings and its Subsidiaries not to exceed $10,000,000 in the
aggregate; and

     (n) (w) Investments (other than Guarantees or assumptions of debt which are not
Permitted Guarantees) by Holdings and its Subsidiaries in Qualified Designated Entities in
which Holdings or one of its Subsidiaries owns, directly or indirectly, more than 50% of the
Equity Interests (other than an ANB Entity or an Oregon Entity), (x) commitments to lend to
or invest in Qualified Designated Entities (other than an ANB Entity or an Oregon Entity),
(y) those portions of all put obligations to purchase Equity Interests of Qualified
Designated Entities (other than ANB Entities or Oregon Entities) that are not by their terms
Stock-Pay Obligations (which portion shall not exceed, when taken together with all other
portions of obligations to purchase Equity Interests in respect of ANB Entities, Oregon
Entities, Joint Venture Entities and Qualified Designated Entities that are not Stock-Pay
Obligations, $20,000,000 in amount at any time) and (z) payments of or obligations to pay
management, origination or other similar fees or penalties in connection with any of the
foregoing; provided that, with respect to each Investment made or other obligation
incurred pursuant to this Section 7.03(n):

     (i) Holdings or the relevant Subsidiary shall comply with the requirements of
Section 6.12(b) as they apply to any Equity Interests or other property
obtained by them in connection with such Investment;

     (ii) the lines of business of the Person in which such Investment is made shall
be substantially one or more of the same lines of business as described in
Section 7.07;

     (iii) such Investment or other obligation shall not include or result in any
contingent liabilities that could reasonably be expected to be material to the
business, financial condition, operations or prospects of Holdings and its

 

 

Subsidiaries, taken as a whole (as determined in good faith by the board of
directors (or the persons performing similar functions) of Holdings or such
Subsidiary if the board of directors is otherwise approving such transaction and, in
each other case, by a Responsible Officer), other than in respect of (A) Permitted
Guarantees, (B) future obligations to invest in or to lend to or purchase Equity
Interests of a Qualified Designated Entity (other than ANB 1 or ANB 1 License) that
at the time incurred comply with the requirements of this Section 7.03(n)
and (C) Permitted Make-Whole Obligations;

     (iv) immediately before and immediately after giving effect to such Investment
or the incurrence of such other obligation, the Loan Parties shall have an aggregate
amount of $100,000,000 in any combination of available cash, Cash Equivalents held
by Loan Parties free and clear of all Liens other than the Liens created under the
Collateral Documents and bankers’ or similar liens and unused Revolving Credit
Commitments which are then available to be drawn in accordance with the requirements
of Section 4.02;

     (v) (1) immediately before and immediately after giving pro forma effect to any
such Investment or the incurrence of such other obligation, no Default shall have
occurred and be continuing and (2) immediately after giving effect to such
Investment or the incurrence of such other obligation, Holdings and its Subsidiaries
(including any Qualified Designated Entities and Joint Venture Entities that are
required under GAAP to be consolidated with Holdings and its Subsidiaries) shall be
in Pro Forma Compliance with (x) in the case of any Investment or other obligation
that results in the Incurrence of Indebtedness not otherwise permitted under
Sections 7.02(a)(i) or (ii) by Holdings or any of its Subsidiaries (or by
any Qualified Designated Entity or Joint Venture Entity that is required under GAAP
to be consolidated with Holdings and its Subsidiaries, unless such Indebtedness is
owed to a Loan Party), the Incurrence Test and (y) the Senior Secured Leverage
Covenant;

     (vi) except with respect to Permitted QDE Equity Investments and Permitted QDE
Unsecured Investments, at least 75% of the aggregate amount invested by Holdings or
any of its Subsidiaries in each single Qualified Designated Entity and its
respective Subsidiaries on a consolidated basis pursuant to this Section
7.03(n) shall consist of loans to such Qualified Designated Entity or any of its
Subsidiaries, or Investments resulting in contractual obligations of such Qualified
Designated Entity or any of its Subsidiaries to a Loan Party, that in each case are
secured by the assets of such Qualified Designated Entity (other than FCC licenses
and non-owned real property and subject to reasonable exceptions for other property
the value of which does not exceed 10% of the total assets of such Qualified
Designated Entity and its Subsidiaries) pursuant to loan and security documents
which have been executed and delivered and certified copies thereof provided to the
Administrative Agent prior to the making of the initial Investment therein pursuant
to this Section 7.03(n) (“QDE Credit Documents”), which documents (A) shall
prohibit the incurrence by such Qualified Designated Entity and its Subsidiaries of
Indebtedness owed to third

 

 

parties except (u) Indebtedness constituting purchase money financing (which
may be secured) of telecommunications equipment of up to $20,000,000 in the
aggregate outstanding at any one time, (v) Indebtedness constituting purchase money
financing (which may be secured) for tangible personal property in the nature of
office equipment utilized in the ordinary course of business, (w) secured
Indebtedness constituting liabilities or obligations of the Qualified Designated
Entity and its Subsidiaries underlying the Auction 66 Priority Put Right, (x)
unsecured Indebtedness in an aggregate principal amount not to exceed $20,000,000 at
any one time outstanding, (y) intercompany Indebtedness by and among the Qualified
Designated Entity and its Subsidiaries, Guarantees by the Qualified Designated
Entity and its Subsidiaries of Indebtedness of such Qualified Designated Entity and
its Subsidiaries of the types described in subclauses (u)-(z), and any
refinancings, refundings, renewals or extensions of Indebtedness of the types
described in subclauses (u)-(z), and (z) unsecured Indebtedness as to which
(1) the Lender has acknowledged that it is not relying on the credit of Holdings or
its Subsidiaries to satisfy such Indebtedness, (2) the maturity is no earlier than
180 days after the Maturity Date in respect of the Term B Facility and there are no
scheduled amortization payments or mandatory prepayments and (3) the aggregate
principal amount (excluding capitalized interest on such Indebtedness) does not
exceed, for all Qualified Designated Entities in which Holdings and its Subsidiaries
have made Investments under this Section 7.03(n), $150,000,000 (of which no
more than $100,000,000 in the aggregate shall be owed to any third parties that are
not Affiliates of Holdings) and (B) except as provided in subclauses (A)(u),
(v) and (w) above, shall provide for first priority (subject, in the
case of Auction 66 Entities, to the Auction 66 Priority Put Right) security
interests held by such Loan Parties over all of the assets of such Qualified
Designated Entity and its Subsidiaries (excluding FCC Licenses and non-owned real
property and subject to reasonable exceptions for other property the value of which
does not exceed 10% of the total assets of such Qualified Designated Entity and its
Subsidiaries); provided that any portion of the secured loans or advances to
such Qualified Designated Entity or its Subsidiaries that has been repaid by such
Qualified Designated Entity or its Subsidiaries shall be treated as outstanding for
purposes of calculating the percentage referred to in this subclause (n)(vi)
except for purposes of subsequent Investments, which shall be in the form of secured
loans and advances until such time as such ratio shall be met with respect to
Investments actually outstanding; and provided further, that no
term, provision or condition that is included in, or added to or omitted or deleted
from, the QDE Credit Documents from time to time, that Holdings reasonably deems
advisable in order to comply with requests, directives, rules or regulations of the
FCC, shall result in a breach of or constitute a failure to perform or observe any
of the covenants or agreements set forth in this subclause (n)(vi) unless
such term, provision or condition is a material change to a provision of such QDE Credit Document specifically referred to in this subclause (n)(vi) and is
not otherwise approved by the Administrative Agent; and

     (vii) except for Investments of the type permitted by Section 7.05(s),
(t), (u) or (v), and except for Permitted Guarantees, Holdings
shall have delivered to

 

 

the Administrative Agent, on behalf of the Lenders, at least five Business Days
prior to the date on which any initial Investment in a Qualified Designated Entity
is to be consummated, a certificate of a Responsible Officer, in form and substance
reasonably satisfactory to the Administrative Agent, certifying that all of the
requirements set forth in this clause (n) have been satisfied or will be
satisfied on or prior to the consummation of such Investment and demonstrating the
calculations used to determine such compliance; and

(o) (w) Investments (other than Guarantees or assumptions of debt which are not Permitted
Guarantees) by Holdings and its Subsidiaries in an Oregon Entity, (x) commitments to lend to or
invest in an Oregon Entity, (y) those portions of all put obligations to purchase Equity Interests
of an Oregon Entity that are not by their terms Stock-Pay Obligations (which portions shall not
exceed, when taken together with all other portions of obligations to purchase Equity Interests in
respect of ANB Entities, Joint Venture Entities and Qualified Designated Entities that are not
Stock-Pay Obligations, $20,000,000 in amount at any time) and (z) payments of or obligations to pay
management, origination or other similar fees in connection with any of the foregoing, in an
aggregate amount for all such Investments and other obligations referred to in clauses
(w), (x), (y) and (z) outstanding at any time not to exceed in the
aggregate an amount equal to $85,000,000 including an amount equal to 85% of the Net Cash Proceeds
from any sale of the Toledo/Sandusky Assets which amount shall be invested pursuant to this
Section 7.03(o) as required by Section 7.05(w) (the “Required Toledo Reinvestment”)
(which amount shall (i) be permanently reduced by amounts of the type referred to in clause (z)
once any such amount has been paid to a Person other than a Loan Party and (ii) be calculated
without giving effect to (A) any capitalized interest on obligations owed by any Oregon Entity to a
Loan Party, (B) Excluded Assumed Liabilities and (C) Stock-Pay Obligations); provided that,
with respect to each Investment made pursuant to this Section 7.03(o):

          (i) Holdings or the relevant Subsidiary shall comply with the requirements of
Section 6.12(b) as they apply to any Equity Interests or other property obtained by
them in connection with such Investment;

          (ii) the lines of business of the Person in which such Investment is made shall be
substantially one or more of the same lines of business as described in Section
7.07;

          (iii) such Investment shall not include or result in any contingent liabilities that
could reasonably be expected to be material to the business, financial condition, operations
or prospects of Holdings and its Subsidiaries, taken as a whole (as determined in good faith
by the board of directors (or the persons performing similar functions) of Holdings or such
Subsidiary if the board of directors is otherwise approving such transaction and, in each
other case, by a Responsible Officer), other than in respect of Permitted Guarantees and
future obligations to invest in or to lend to or purchase Equity Interests of an Oregon
Entity that at the time incurred comply with the requirements of this Section
7.03(o), and obligations to pay any management, origination or other similar fees to
third parties in connection therewith, that do not in the aggregate when taken together with
all other outstanding Investments and obligations of a type referred to in this Section
7.03(o) (excluding Stock-Pay Obligations, any capitalized

 

 

interest on obligations owed by any Oregon Entity to a Loan Party and Excluded Assumed
Liabilities) exceed $85,000,000 (as such amount may have been reduced by the amount of the
Required Toledo Reinvestment);

          (iv) immediately before and immediately after giving effect to such Investment, the
Loan Parties shall have an aggregate amount of $100,000,000 in any combination of available
cash, Cash Equivalents held by Loan Parties free and clear of all Liens other than the Liens
created under the Collateral Documents and bankers’ or similar liens and unused Revolving
Credit Commitments which are then available to be drawn in accordance with the requirements
of Section 4.02; provided, that the requirements of this clause (iv) shall
not apply to an acquisition of Equity Interests in an Oregon Entity pursuant to put
obligations so long as the consideration therefore consists entirely of any combination of
common stock of Holdings, Qualified Preferred Stock and cash in an amount that does not
exceed, when taken together with the amount of all obligations to purchase Equity Interests
of ANB Entities, Oregon Entities, Joint Venture Entities and Qualified Designated Entities
that are not Stock-Pay Obligations, $20,000,000 in the aggregate;

          (v) (1) immediately before and immediately after giving pro forma effect to any such
Investment, no Default shall have occurred and be continuing and (2) immediately after
giving effect to such Investment, Holdings and its Subsidiaries (including any Qualified
Designated Entities and Joint Venture Entities that are required under GAAP to be
consolidated with Holdings and its Subsidiaries) shall be in Pro Forma Compliance with (x)
in the case of any Investment that results in the Incurrence of Indebtedness not otherwise
permitted under Sections 7.02(a)(i) or (ii) by Holdings or any of its Subsidiaries
(or any Qualified Designated Entity or Joint Venture Entity that is required under GAAP to
be consolidated with Holdings and its Subsidiaries, unless such Indebtedness is owed to a
Loan Party), the Incurrence Test and (y) the Senior Secured Leverage Covenant; and

          (vi) except for Investments of the type permitted by Section 7.05(s), (t), (u) or
(v), and except for Permitted Guarantees, Holdings shall have delivered to the
Administrative Agent, on behalf of the Lenders, (A) at least five Business Days prior to the
date on which the initial Investment under this Section 7.03(o) after the date
hereof is to be consummated, a certificate of a Responsible Officer, in form and substance
reasonably satisfactory to the Administrative Agent, certifying that all of the requirements
set forth in this clause (o) have been satisfied or will be satisfied on or prior to
the consummation of such Investment and demonstrating the calculations used to determine
such compliance and (B) from time to time as they are executed, copies of all Qualified
Designated Entity Agreements or joint venture agreements relating to the Oregon Entities.

          7.04 Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into
another Person, or Dispose of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any
Person, except that, with respect to clauses (a) through (d) so long as no Event of Default
or, to the knowledge of Holdings, Default exists and no Default would result therefrom:

 

 

     (a) any Subsidiary (other than a Disqualified Subsidiary) may merge with (i) Holdings
or the Borrower, provided that Holdings or the Borrower shall be the continuing or
surviving Person, or (ii) any one or more other Subsidiaries, provided that when any
Loan Party (other than Holdings) is merging with another Subsidiary that is not a Loan
Party, such Loan Party shall be the continuing or surviving Person;

     (b) any Loan Party (other than the Borrower) may Dispose of all or substantially all of
its assets (upon voluntary liquidation or otherwise) to the Borrower or to another Loan
Party;

     (c) any Subsidiary that is not a Loan Party may dispose of all or substantially all its
assets to (i) another Subsidiary which is not a Loan Party or (ii) to a Loan Party for no
consideration, or, in the case of this clause (ii), pursuant to a Disposition which
is in the nature of a liquidation;

     (d) in connection with any acquisition permitted under Section 7.03, any
Subsidiary of Holdings (other than the Borrower) may merge into or consolidate with any
other Person or permit any other Person to merge into or consolidate with it; provided
that the Person surviving such merger shall be a wholly owned Subsidiary of Holdings;
provided further that if the Subsidiary of Holdings involved in such merger
or consolidation is a Guarantor then the surviving entity shall also be a Guarantor; and

     (e) in the case of any Subsidiary other than the Borrower, pursuant to a transaction
otherwise permitted by Section 7.05 (other than Section 7.05(g)).

          7.05 Dispositions. Make any Disposition or enter into any agreement to make any
Disposition, except:

     (a) Dispositions of obsolete or worn out property, whether now owned or hereafter
acquired, in the ordinary course of business;

     (b) Dispositions of inventory in the ordinary course of business;

     (c) Leases or sub-leases in the ordinary course of business or with durations not
exceeding two years, of a type customarily entered into by Persons engaged in the same or
similar business as Holdings and its Subsidiaries;

     (d) Non-exclusive licenses or sub-licenses of intellectual property in the ordinary
course of business or with durations not exceeding two years and any standstill contract,
agreement, arrangement or commitment under which Holdings or any of its Subsidiaries agrees
not to bring suit for infringement of any of its patent rights but reserves its rights to
recover royalties or damages for any infringing activities during the standstill period;

     (e) Dispositions of equipment or real property to the extent that (i) such property is
exchanged for credit against the purchase price of similar replacement property or (ii) the
proceeds of such Disposition are reasonably promptly applied to the purchase price of such
replacement property;

 

 

     (f) Dispositions of property by any Subsidiary to Holdings or to a wholly owned
Subsidiary (other than a Disqualified Subsidiary); provided that if the transferor
of such property is a Guarantor, the transferee thereof must either be the Borrower or a
Guarantor;

     (g) Dispositions permitted by Section 7.04;

     (h) Dispositions of surplus property by the Borrower and its Subsidiaries not otherwise
permitted under this Section 7.05; provided that (i) at the time of such
Disposition, no Default shall exist or would result from such Disposition, (ii) the purchase
price for such asset shall be paid to the Borrower or such Subsidiary at least 75% in cash,
(iii) no FCC License shall be Disposed of in reliance on this clause (h) and (iv)
any Net Cash Proceeds from Dispositions pursuant to this clause (h) in excess of
$10,000,000 in the aggregate during any fiscal year shall be applied in accordance with
Section 2.04(b)(ii);

     (i) Dispositions (x) by any Excluded Subsidiary or by any Disqualified Subsidiary, (y)
of any Excluded Subsidiary or of any Disqualified Subsidiary and (z) of Equity Interests in
any Joint Venture Entity or Qualified Designated Entity;

     (j) Dispositions of cell-site towers in a sale-leaseback transaction; provided
that 50% of any Net Cash Proceeds in excess of $20,000,000 received by Holdings or any
Subsidiary in connection with such Disposition shall be immediately applied to prepay the
Loans under Section 2.04(b)(ii) (without regard to the reinvestment provisions
thereof);

     (k) (A) Dispositions of one or more FCC Licenses solely to the extent that at least 80%
of the consideration received therefor consists entirely of one or more FCC Licenses having
an identical coverage area and equal or greater bandwidth and (B) Dispositions of FCC
Licenses not in commercial operation to the extent that at least 80% of the consideration
therefor consists of other FCC Licenses and equipment, leases or other property related
thereto; provided that any cash received in connection with a transaction under this
clause (B) shall be deemed to be the fair market value of assets Disposed of for
purposes of Section 7.05(l);

     (l) other Dispositions of property having a fair market value in the aggregate for all
such Dispositions pursuant to this Section 7.05(l) not in excess (when taken
together with any cash received in transactions under Section 7.05(k) or Section
7.05(r)) of $150,000,000; provided that in each case the consideration therefor
is paid at least 75% in cash;

     (m) the transfer by Holdings of an amount not to exceed $7,000,000 to the Leap Creditor
Trust as required by the Plan of Reorganization;

     (n) non-exclusive licenses or sublicenses of intellectual property to ANB 1 License;

 

 

     (o) Dispositions of inventory to ANB 1 License for a sale price not less than the cost
thereof for sale or use by ANB 1 License in the ordinary course of business;
provided that to the extent that the consideration received from ANB 1 License is
not cash, the amount of such non-cash consideration shall constitute an Investment that is
subject to the limitations set forth in Section 7.03(l);

     (p) Dispositions of property or equipment to ANB 1 License by Holdings or any of its
Subsidiaries for fair market value in connection with providing services to ANB 1 License
under a management or services agreement, provided the aggregate fair market value
for all such equipment and property disposed of is not in excess of $5,000,000 in the
aggregate in any fiscal year; provided further that to the extent that the
consideration received from ANB 1 License is not cash, the amount of such non-cash
consideration shall constitute an Investment that is subject to the limitations set forth in
Section 7.03(l);

     (q) subleases of cell sites, switch sites, retail sites and administrative sites to ANB
1 License at rents not less than the rents paid by Holdings or its Subsidiaries under the
corresponding primary leases for such sites, provided that (i) the aggregate annual
rents under all primary leases subject to such subleases do not exceed $20,000,000 and (ii)
any amount not paid by ANB 1 or ANB 1 License in cash by such time as the rent is due under
the terms of the corresponding primary lease shall constitute an Investment that is subject
to the limitations set forth in Section 7.03(l);

     (r) Dispositions of property transferred in exchange for, or contributed in respect of
the issuance of, any Equity Interests from any Joint Venture Entity, Qualified Designated
Entity or Disqualified Subsidiary in which Holdings or any of its Subsidiaries makes an
Investment of the type permitted by Section 7.03(k), Section 7.03(n) or
Section 7.03(o) and any other consideration received in connection therewith;
provided that the amount of Investment in such Equity Interests for the purposes of
Section 7.03(k), Section 7.03(n) or Section 7.03(o), as applicable,
shall be deemed to be the fair market value of the property so Disposed minus any cash and
the fair market value of any non-cash consideration (other than such Equity Interests)
received in such transfer or exchange, as determined in good faith by the Board of Directors
or its delegate; and provided further that any cash consideration received
in a transfer or exchange under this Section 7.05(r) shall be deemed to be the fair
market value of assets Disposed of for purposes of Section 7.05(l);

     (s) non-exclusive licenses or sublicenses of intellectual property to any Joint Venture
Entity, Qualified Designated Entity or Disqualified Subsidiary in which Holdings or any of
its Subsidiaries makes or has made an Investment of the type permitted by Section
7.03(k), Section 7.03(n) or Section 7.03(o) at the time such license or
sublicense is granted;

     (t) Dispositions of inventory to any Joint Venture Entity, Qualified Designated Entity
or Disqualified Subsidiary in which Holdings or any of its Subsidiaries makes an Investment
of the type permitted by Section 7.03(k), Section 7.03(n) or Section
7.03(o), for a sale price not less than the cost thereof for sale or use by such Joint
Venture Entity, Qualified Designated Entity or Disqualified Subsidiary in the ordinary
course of business; provided that to the extent that the consideration received from
such Joint

 

 

Venture Entity, Qualified Designated Entity or Disqualified Subsidiary is not cash, the
amount of such non-cash consideration shall constitute an Investment that is subject to the
limitations set forth in Section 7.03(k), 7.03(n) or 7.03(o), as
applicable.;

     (u) Dispositions of property or equipment to any Joint Venture Entity, Qualified
Designated Entity or Disqualified Subsidiary in which Holdings or any of its Subsidiaries
makes an Investment of the type permitted by Section 7.03(k), 7.03(n) or
7.03(o), by Holdings or any of its Subsidiaries for fair market value in connection
with providing services to such Joint Venture Entity, Qualified Designated Entity or
Disqualified Subsidiary under a management or services agreement, provided the
aggregate fair market value for all such equipment and property disposed of is not in excess
of $10,000,000 in the aggregate in any fiscal year; provided further that to
the extent that the consideration received from such Joint Venture Entity, Qualified
Designated Entity or Disqualified Subsidiary is not cash, the amount of such non-cash
consideration shall constitute an Investment that is subject to the limitations set forth in
Section 7.03(k), 7.03(n) or 7.03(o), as applicable;

     (v) subleases of cell sites, switch sites, retail sites and/or administrative sites to
any Joint Venture Entity, Qualified Designated Entity or Disqualified Subsidiary in which
Holdings or any of its Subsidiaries makes an Investment of the type permitted by Section
7.03(k), 7.03(n) or 7.03(o), at rents not less than the rents paid by
Holdings or its Subsidiaries under the corresponding primary leases for such sites,
provided that (i) the aggregate annual rents under all primary leases subject to
such subleases do not exceed $20,000,000 and (ii) any amount not paid by such Joint Venture
Entity, Qualified Designated Entity or Disqualified Subsidiary in cash by such time as the
rent is due in under the terms of the corresponding primary lease shall constitute an
Investment that is subject to the limitations set forth in Section 7.03(k),
7.03(n) or 7.03(o), as applicable; and

     (w) the Disposition of the Toledo/Sandusky Assets for fair market value so long as an
amount equal to at least 85% of the Net Cash Proceeds thereof is invested in an Oregon
Entity pursuant to Section 7.03(o) within 6 months after the consummation of such
Disposition (whether such Investment is made in cash or in kind) or, if not so invested,
used to prepay obligations pursuant to Section 2.04(b).

provided, however, that any Disposition pursuant to Section 7.05(a) through
Section 7.05(l) shall be for fair market value.

          7.06 Restricted Payments. (a) Declare or make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or otherwise) to do so, or issue or sell
any Equity Interests (other than common Equity Interests of Holdings or Qualified Preferred Stock) or accept
any capital contributions, unless, that the time of and after giving effect thereto, (x) no Default
shall have occurred and be continuing or would result therefrom, (y) Holdings is in Pro Forma
Compliance with the Senior Secured Leverage Covenant and the Incurrence Test and (z) the amount of
such Restricted Payment does not exceed the Available Cash Flow Basket as of such date of
determination; provided, that as used in the foregoing clause (x), the term
“Default” excludes any Default in the performance of a Revolver Maintenance Covenant. The
provisions

 

 

of the preceding sentence shall not prohibit the declaration or making of the following Restricted
Payments:

     (i) so long as no Default shall have occurred and be continuing or would result
therefrom, each Subsidiary may make Restricted Payments to any Loan Party and any other
Person that owns a direct Equity Interest in such Subsidiary, ratably according to their
respective holdings of the type of Equity Interest in respect of which such Restricted
Payment is being made;

     (ii) any Loan Party may make Restricted Payments to, or issue or sell any Equity
Interests to, or accept any capital contribution from, any other Loan Party;

     (iii) Holdings and each Subsidiary may declare and make dividend payments or other
distributions payable solely in the common stock or Qualified Preferred Stock or other
common Equity Interests of such Person and Holdings may declare and make dividend payments
or other distributions on common stock of Holdings or Qualified Preferred Stock payable
solely in shares of common stock of Holdings or Qualified Preferred Stock;

     (iv) so long as no Event of Default, or, to the knowledge of Holdings, Default shall
have occurred and be continuing and no Default would result therefrom, Holdings and each
Subsidiary may purchase, redeem or otherwise acquire shares of its common stock or other
common Equity Interests with the proceeds received from the substantially concurrent issue
of new shares of its common stock or other common Equity Interests;

     (v) Holdings may repurchase shares of its common stock pursuant to employee benefit and
incentive plans and agreements with employees in an aggregate amount not in excess of
$100,000;

     (vi) so long as no Default under Section 8.01(a) or Event of Default shall have
occurred and be continuing or would result therefrom, Holdings and its Subsidiaries may make
payments not exceeding $250,000 in the aggregate relating to the wind-up, liquidation and
dissolution of the Excluded Subsidiaries; and

     (vii) in the case of Holdings, Permitted Equity Forwards.

          (b) Whether or not otherwise permitted to do so by the provisions of Section 7.06(a),
for so long as any Revolving Credit Loan or Uncollateralized Letter of Credit shall be outstanding,
Holdings and the Borrower shall not, nor shall either of them permit any Subsidiary to, declare or
make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or
otherwise) to do so, or issue or sell any Equity Interests (other than common equity of Holdings or
Qualified Preferred Stock) or accept any capital contributions unless such action is expressly
permitted under one or more of clauses (i) through (vii) of Section 7.06(a)
unless at such time and after giving effect thereto, Holdings would be in Pro Forma Compliance with
the Revolver Maintenance Covenants.

          7.07 Change in Nature of Business. Engage in any material line of business other than
(a) the delivery or distribution of wireless telecommunications services (including

 

 

voice, data or video services), (b) any business or activity reasonably related or ancillary to
those listed in the foregoing clause (a), and (c) the acquisition, holding or exploitation
of any license relating to the delivery of such wireless services.

          7.08 Transactions with Affiliates. Enter into any transaction of any kind with any
Affiliate of Holdings, whether or not in the ordinary course of business, other than on fair and
reasonable terms substantially as favorable to Holdings or such Subsidiary as would be obtainable
by Holdings or such Subsidiary at the time in a comparable arm’s length transaction with a Person
other than an Affiliate; provided that the foregoing restriction shall not apply to
transactions between and among Loan Parties or to (i) customary directors’ fees and expenses, (ii)
employment agreements, employee benefit and compensation plans approved by the Board of Directors
of Holdings or otherwise generally available to employees of Holdings and its Subsidiaries, (iii)
payments under customary officers’ and directors’ indemnification arrangements or (iv) payments
permitted under any of Sections 7.06(a)(v) and 7.06(a)(vi) and transactions
permitted under Section 7.03(b).

          7.09 Burdensome Agreements. Enter into or permit to exist any Contractual Obligation
(other than this Agreement or any other Loan Document) that (a) limits in any material respect the
ability (i) of any Subsidiary to make Restricted Payments to the Borrower or any Guarantor or to
otherwise transfer property to or invest in the Borrower or any Guarantor, except for any agreement
in effect (A) on the date hereof or (B) at the time any Subsidiary becomes a Subsidiary of
Holdings, so long as such agreement was not entered into solely in contemplation of such Person
becoming a Subsidiary of Holdings, (ii) of any Subsidiary to Guarantee the Indebtedness of the
Borrower or (iii) of the Borrower or any Subsidiary to create, incur, assume or suffer to exist
Liens on property of such Person; provided, however, that this clause (iii)
shall not prohibit any negative pledge incurred or provided in favor of any holder of Indebtedness
permitted under Section 7.02(a)(ii)(D)(x) or 7.02(a)(ii)(F) solely to the extent
any such negative pledge relates to the property financed by or the subject of such Indebtedness or
the assets of the Disqualified Subsidiary referred to in Section 7.02(b)(F) or (b) requires
the grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another
obligation of such Person; provided that clauses (a)(ii), (a)(iii) and
(b) shall not be deemed to refer to customary covenants contained in any documents
governing Permitted Unsecured Debt or Permitted Bridge Debt, so long as such covenants contain
express exceptions permitting the Guarantees of the Obligations and the Liens created under the
Loan Documents.

          7.10
Financial Covenants. (a) Consolidated Interest Coverage Ratio. Permit the
Consolidated Interest Coverage Ratio as of the last day of any Measurement Period, if on such date
a Revolving Credit Loan or Uncollateralized Letter of Credit is outstanding, to be less than (i)
prior to June 30, 2008, 1.70:1.00 and (ii) from and after June 30, 2008, 2.00:1.00.

          (b) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio at as of any
date on which a Revolving Credit Loan or Uncollateralized Letter of Credit is outstanding to be
greater than the ratio set forth below for the applicable Measurement Period:

 

 

	 	 	 	 	 
	Four Fiscal Quarters Ending	 	Maximum Ratio
	Closing Date through March 31, 2007
	 	 	7.00:1.00	 
	April 1, 2007 through September 30, 2007
	 	 	6.50:1.00	 
	October 1, 2007 through March 31, 2008
	 	 	6.00:1.00	 
	April 1, 2008 and thereafter
	 	 	5.50:1.00	 

          (c) Consolidated Senior Secured Leverage Ratio. Permit the Consolidated Senior
Secured Leverage Ratio at any time during any period of four fiscal quarters of Holdings to be
greater than 4.50:1.00.

          (d) Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed Charge
Coverage Ratio as of the last day of any Measurement Period, if on such date a Revolving Credit
Loan or Uncollateralized Letter of Credit is outstanding, to be less than 1.10:1.00.

          7.11 Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or
indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the Board of Governors of the Federal Reserve System) or to
extend credit to others for the purpose of purchasing or carrying margin stock or to refund
Indebtedness originally incurred for such purpose.

          7.12 Amendments of Organization Documents; Qualified Designated Entity Agreements.
(a) Amend any of its Organization Documents in a manner materially adverse to the Lenders, (b) (i)
amend any Qualified Designated Entity Agreement in a manner that would reasonably be expected to
have a Material Adverse Effect or would amend or waive any provision of such documents in
contravention of Section 6.23(b), except to the extent Holdings reasonably deems advisable
in order to comply with requests, directives, rules or regulations of the FCC or (ii) amend any QDE
Credit Documents in a manner that violates Section 7.03(n)(vi) or (c) cancel, discharge or
forgive any Indebtedness owed to a Loan Party by a Qualified Designated Entity unless and until
such Person becomes a wholly-owned Subsidiary that is not a Disqualified Subsidiary.

          7.13 Accounting Changes. Make any change (i) in accounting policies or reporting
practices, except as required or permitted by GAAP, or (ii) to its fiscal year.

          7.14 Prepayments, Etc., of Indebtedness. (a) Prepay, redeem, purchase, defease or
otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment in
violation of any subordination terms of, any Indebtedness, except (i) the prepayment of the Credit
Extensions in accordance with the terms of this Agreement, (ii) regularly scheduled or required
repayments or redemptions of Indebtedness permitted to be incurred under Section 7.02 (to
the extent that such Indebtedness is permitted to have any scheduled repayments or
redemptions), (iii) prepayments made with the proceeds of issuances or sales of common Equity
Interests of Holdings or Qualified Preferred Stock and (iv) refinancings of Permitted Unsecured

 

 

Debt and Permitted Bridge Debt that satisfy the criteria set forth in clauses (a),
(b) and (c) of the definition of Permitted Unsecured Debt; (b) repay any Permitted
Bridge Debt on the “rollover date” in respect thereof (it being understood that this clause (b)
shall require Holdings and its Subsidiaries to elect to roll such debt into Permitted Unsecured
Debt or to refinance it on terms permitted hereunder or to repay it from the proceeds of issuances
or sales of common Equity Interests of Holdings or Qualified Preferred Stock (or any combination
thereof)) or (c) amend the terms of any Permitted Unsecured Debt
or Permitted Bridge Debt in a manner that would cause such
Permitted Unsecured Debt or Permitted Bridge Debt to fail to satisfy the criteria set forth in clauses (a),
(b) and (c) of the definition thereof (or, in the case
of Permitted Bridge Debt, fail to constitute Permitted Bridge Debt).

          7.15 Partnerships, Etc. Become a general partner in any general or limited
partnership or joint venture.

          7.16 Speculative Transactions. Engage, or permit any of its Subsidiaries to engage,
in any transaction involving commodity options or futures contracts or any similar speculative
transactions, which are, in any case, inconsistent with prior practice and not otherwise made in
the ordinary course of business; provided, that this Section 7.16 shall not
prohibit Holdings from engaging in Permitted Equity Forwards.

          7.17 Formation of Subsidiaries. Organize or invest in any new Subsidiary except as
permitted under Section 7.03(c) or (k) or if such Subsidiary complies with the
requirements of Section 6.12(a).

          7.18 ANB Entity Indebtedness. For so long as any Indebtedness referred to in
clause (a)(i) below remains outstanding, (a) the Borrower shall not amend, modify or waive
any term of the ANB Credit Documents as in effect on the Closing Date to permit ANB 1 or ANB 1
License to incur any Indebtedness other than (i) Indebtedness owed to a Loan Party that is
permitted under Section 7.03(l) and (ii) additional Indebtedness not exceeding $15,000,000
in the aggregate for both of ANB 1 and ANB 1 License at any time outstanding, (b) the Borrower
shall not assign any portion of its rights or duties under the ANB Credit Documents to any person
other than another Loan Party, except solely in connection with the exercise of remedies under the
ANB Credit Documents), (c) until ANB 1 License becomes a wholly owned Subsidiary that is not a
Disqualified Subsidiary, the Borrower shall not cancel, discharge or forgive any Indebtedness under
the ANB Credit Documents.

          7.19
Equity Forwards. Make any payment in respect of a Permitted Equity Forward other
than in common stock of Holdings or Qualified Preferred Stock; provided that Holdings shall
be permitted to make cash payments in respect of Permitted Equity Forwards not in excess of
$5,000,000 in the aggregate so long as before and after giving effect to each such payment no
Default shall have occurred and be continuing.

ARTICLE VIII

EVENTS OF DEFAULT AND REMEDIES

          8.01 Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment. The Borrower or any other Loan Party fails to (i) pay when
and as required to be paid herein, any amount of principal of any Loan or any L/C

 

 

Obligation or deposit any funds as Cash Collateral in respect of L/C Obligations, or (ii)
pay within two Business Days after the same becomes due, any interest on any Loan or on any
L/C Obligation, or any fee due hereunder, or (iii) pay within five days after the same
becomes due, any other amount payable hereunder or under any other Loan Document; or

     (b) Specific Covenants. (i) Holdings or the Borrower fails to perform or
observe any term, covenant or agreement contained in any of Section 6.01(c),
6.02 (other than Section 6.02(h)), 6.03, 6.05, 6.09,
6.10, 6.11, 6.12, 6.18, 6.21, 6.22 or
Article VII (other than any Revolving Facility Covenant); (ii) Holdings or the
Borrower fails to perform or observe any Revolving Facility Covenant (provided that such
failure shall not constitute a Default or Event of Default under the Term B Facility except
to the extent otherwise provided in Section 8.01(e)); (iii) Holdings fails to
perform or observe any term, covenant or agreement contained in any of Section
6.01(a) or (b) and such failure continues for a period of fifteen (15) days
after a Responsible Officer of Holdings has knowledge thereof; (iv) Holdings or the Borrower
fails to perform or observe any term of Section 6.17 and such failure continues for
a period of five (5) days after a Responsible Officer of Holdings has knowledge thereof or
(v) any of the Guarantors fails to perform or observe any term, covenant or agreement
contained in Section 4 of the Guaranty; or

     (c) Other Defaults. Any Loan Party fails to perform or observe any other
covenant or agreement (not specified in Section 8.01(a) or (b) above)
contained in any Loan Document on its part to be performed or observed and such failure
continues for 30 days after a Responsible Officer of Holdings has knowledge thereof; or

     (d) Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of the Borrower or
any other Loan Party herein, in any other Loan Document, or in any document delivered in
connection herewith or therewith shall be incorrect or misleading in any material respect
when made or deemed made; or

     (e) Cross-Default. (i) Any Loan Party or any of its Subsidiaries (A) fails to
make any payment when due (whether by scheduled maturity, required prepayment, acceleration,
demand, or otherwise, but in all cases after expiration of the applicable grace period, if
any) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and
Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn
committed or available amounts and including amounts owing to all creditors under any
combined or syndicated credit arrangement) of more than the Threshold Amount, or (B) fails
to observe or perform any other agreement or condition relating to any such Indebtedness or
Guarantee exceeding the Threshold Amount or contained in any instrument or agreement
evidencing, securing or relating thereto, or any other event occurs, but in all cases after
expiration of the applicable grace period, if the effect of such default or other event is
to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or
beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or holders
or beneficiary or beneficiaries) to cause, with the giving of notice if required, such
Indebtedness to be demanded or to become due or to be repurchased, prepaid, defeased or
redeemed (automatically or otherwise), or an offer to

 

 

repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated
maturity, or such Guarantee to become payable or cash collateral in respect thereof to be
demanded (provided that any failure to perform or observe any Revolving Facility Covenant
shall not give rise to a Default or Event of Default in respect of the Term B Facility
unless and until the Required Revolving Lenders shall have requested or consented to the
taking by the Administrative Agent of any action of a type described in Section
8.02); or (ii) there occurs under any Swap Contract (other than a Permitted Equity
Forward) an Early Termination Date (as defined in such Swap Contract) resulting from (A) any
event of default under such Swap Contract as to which the Borrower or any Subsidiary is the
Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as so
defined) under such Swap Contract as to which the Borrower or any Subsidiary is an Affected
Party (as so defined) and, in either event, the Swap Termination Value owed by the Loan
Party or such Subsidiary as a result thereof is greater than the Threshold Amount; or

     (f) Insolvency Proceedings, Etc. Any Loan Party or any of its Subsidiaries
institutes or consents to the institution of any proceeding under any Debtor Relief Law, or
makes an assignment for the benefit of creditors; or applies for or consents to the
appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or
similar officer for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed
without the application or consent of such Person and the appointment continues undischarged
or unstayed for 60 calendar days; or any proceeding under any Debtor Relief Law relating to
any such Person or to all or any material part of its property is instituted without the
consent of such Person and continues undismissed or unstayed for 60 calendar days, or an
order for relief is entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) Any Loan Party or any of its
Subsidiaries becomes unable or admits in writing its inability or fails generally to pay its
debts as they become due, or (ii) any writ or warrant of attachment or execution or similar
process is issued or levied against all or any material part of the property of any such
Person and is not released, vacated or fully bonded within 30 days after its issue or levy;
or

     (h) Judgments. There is entered against any Loan Party or any of its
Subsidiaries (i) a final judgment or order for the payment of money in an aggregate amount
exceeding the Threshold Amount (to the extent not covered by independent third-party
insurance as to which the insurer is rated at least “A” by A.M. Best Company, has been
notified of the potential claim and does not dispute coverage), or (ii) any one or more
non-monetary final judgments that have, or could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect and, in either case, (A)
enforcement proceedings are commenced by any creditor upon such judgment or order (except to
the extent commencement of such enforcement proceedings is in violation of an applicable
order staying enforcement), or (B) there is a period of 30 consecutive days during which a
stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in
effect; or

 

 

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or could reasonably be expected to result in liability
of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC
in an aggregate amount in excess of the Threshold Amount, or (ii) the Borrower or any ERISA
Affiliate fails to pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section 4201 of ERISA
under a Multiemployer Plan in an aggregate amount in excess of the Threshold Amount; or

     (j) Invalidity of Loan Documents. Any provision of any Loan Document, at any
time after its execution and delivery and for any reason other than as expressly permitted
hereunder or thereunder or satisfaction in full of all the Obligations, ceases to be in full
force and effect; or any Loan Party or any Affiliate of a Loan Party contests in any manner
the validity or enforceability of any provision of any Loan Document; or any Loan Party
denies that it has any or further liability or obligation under any provision of any Loan
Document, or purports to revoke, terminate or rescind any provision of any Loan Document; or

     (k) Change of Control. There occurs any Change of Control; or

     (l) Collateral Document. Any Collateral Document after delivery thereof
pursuant to Section 4.01 or 6.12 shall for any reason (other than pursuant
to the terms thereof) cease to create a valid and perfected first priority lien on and
security interest in a portion of the Collateral purported to be covered thereby with a
value in excess of $1,000,000, other than as a result of any action or failure to act on the
part of the Collateral Agent; or

     (m) Auction Default. Any Loan Party fails to fund any of its required equity
contributions to a Qualified Designated Entity or to make required loans to such Qualified
Designated Entity or any of its Subsidiaries which (i) causes such Qualified Designated
Entity or any of its Subsidiaries to fail to pay amounts owed to the FCC with respect to FCC
Licenses with an aggregate purchase price in excess of $200,000,000 as to which such
Qualified Designated Entity or any of its Subsidiaries was the winning bidder in an FCC
Auction and (ii) failure to fund or to make such required loans continues unremedied for
three Business Days.

          8.02 Remedies upon Event of Default. (a) If any Event of Default (other than the
failure to perform or observe any Revolving Facility Covenant) occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders,
take any or all of the following actions:

     (i) declare the commitment of each Lender to make Loans and any obligation of the L/C
Issuer to make L/C Credit Extensions to be terminated, whereupon such commitments and
obligation shall be terminated;

     (ii) declare the unpaid principal amount of all outstanding Loans, all interest accrued
and unpaid thereon, and all other amounts owing or payable hereunder or under

 

 

any other Loan Document to be immediately due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby expressly waived by the
Borrower;

     (iii) require that the Borrower Cash Collateralize the L/C Obligations (in an amount
equal to the then Outstanding Amount thereof); and

     (iv) exercise on behalf of itself and the Lenders all rights and remedies available to
it and the Lenders under the Loan Documents; and

     (b) If any Event of Default consisting of the failure to perform or observe any Revolving
Facility Covenant occurs and is continuing, the Administrative Agent shall, at the request of, or
may, with the consent of, the Required Revolving Lenders, take any or all of the following actions:

     (i) declare the commitment of each Revolving Credit Lender to make Loans and any
obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated;

     (ii) declare the unpaid principal amount of all outstanding Revolving Credit Loans, all
interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or
under any other Loan Document to be immediately due and payable, without presentment,
demand, protest or other notice of any kind, all of which are hereby expressly waived by the
Borrower;

     (iii) require that the Borrower Cash Collateralize the L/C Obligations (in an amount
equal to the then Outstanding Amount thereof); and

     (iv) exercise on behalf of itself and the Revolving Credit Lenders all rights and
remedies available to it and the Lenders under the Loan Documents;

provided, however, that the Administrative Agent shall give prompt notice to the
Term B Lenders of any action taken under Section 8.02(b), and thereafter shall, at the
request of, or may, with the consent of, the Required Term B Lenders, take any or all of the
actions described in clauses (i) through (iv) above with respect to the Term B
Facility as well as the Revolving Credit Facility; provided, further that upon the
occurrence of an actual or deemed entry of an order for relief with respect to the Borrower under
the Bankruptcy Code of the United States, the obligation of each Lender to make Loans and any
obligation of the L/C Issuer to make L/C Credit Extensions shall automatically terminate, the
unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid
shall automatically become due and payable, and the obligation of the Borrower to Cash
Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case
without further act of the Administrative Agent or any Lender.

          8.03 Application of Funds. After the exercise of remedies provided for in Section
8.02 (or after the Loans have automatically become immediately due and payable and the L/C
Obligations have automatically been required to be Cash Collateralized as set forth in the

 

 

proviso to Section 8.02), any amounts received on account of the Obligations shall be
applied by the Administrative Agent in the following order:

     
First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (other than principal and
interest but including fees, charges and disbursements of
counsel to the Administrative Agent and amounts payable under Article III) payable
to the Administrative Agent in its capacity as such;

     Second, to payment of that portion of the Obligations constituting fees,
indemnities and other amounts (other than principal and interest) payable to the Lenders and
the L/C Issuer (including fees, charges and disbursements of counsel to the respective
Lenders and the L/C Issuer and amounts payable under Article III), ratably among
them in proportion to the amounts described in this clause Second payable to them;

     Third, to payment of that portion of the Obligations constituting accrued and
unpaid interest on the Loans, L/C Borrowings and other Obligations, ratably among the
Lenders and the L/C Issuer in proportion to the respective amounts described in this clause
Third payable to them;

     Fourth, to payment of that portion of the Obligations constituting unpaid
principal of the Loans, L/C Borrowings and amounts owing under Secured Hedge Agreements,
ratably among the Lenders, the L/C Issuer and the Hedge Banks in proportion to the
respective amounts described in this clause Fourth held by them;

     Fifth, to the Administrative Agent for the account of each L/C Issuer, to Cash
Collateralize that portion of L/C Obligations comprised of the aggregate undrawn amount of
outstanding Letters of Credit issued by such L/C Issuer;

     Sixth, to the payment of all other Obligations of the Loan Parties owing under
or in respect of the Loan Documents that are due and payable to the Administrative Agent and
the other Secured Parties on such date, ratably based upon the respective aggregate amounts
of all such Obligations owing to the Administrative Agent and the other Secured Parties on
such date; and

     Last, the balance, if any, after all of the Obligations have been indefeasibly
paid in full, to the Borrower or as otherwise required by Law.

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount
of outstanding Letters of Credit pursuant to clause Fifth above shall be applied to satisfy
drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash
Collateral after all outstanding Letters of Credit have either been fully drawn or expired, such
remaining amount shall be applied to the other Obligations, if any, in the order set forth above.

 

 

ARTICLE IX

ADMINISTRATIVE AGENT

          9.01 Appointment and Authority. (a) Each of the Lenders and the L/C Issuer hereby
irrevocably appoints Bank of America to act on its behalf as the Administrative Agent hereunder and
under the other Loan Documents and authorizes the Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof
or thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and
the L/C Issuer, and neither the Borrower nor any other Loan Party shall have rights as a third
party beneficiary of any of such provisions.

          (b) The Administrative Agent shall also act as the “collateral agent” under the Loan
Documents, and each of the Lenders (in its capacities as a Lender and potential Hedge Bank) and
each L/C Issuer hereby irrevocably appoints and authorizes the Administrative Agent to act as the
agent of such Lender and such L/C Issuer for purposes of acquiring, holding and enforcing any and
all Liens on Collateral granted by any of the Loan Parties to secure any of the Secured
Obligations, together with such powers and discretion as are reasonably incidental thereto. In
this connection, the Administrative Agent, as “collateral agent” and any co-agents, sub-agents and
attorneys-in-fact appointed by the Administrative Agent pursuant to Section 9.05 for
purposes of holding or enforcing any Lien on the Collateral (or any portion thereof) granted under
the Collateral Documents, or for exercising any rights and remedies thereunder at the direction of
the Administrative Agent), shall be entitled to the benefits of all provisions of this Article
IX and Article X (including Section 10.04(c), as though such co-agents,
sub-agents and attorneys-in-fact were the “collateral agent” under the Loan Documents) as if set
forth in full herein with respect thereto.

          9.02 Rights as a Lender. The Person serving as the Administrative Agent hereunder
shall have the same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise requires, include the
Person serving as the Administrative Agent hereunder in its individual capacity. Such Person and
its Affiliates may accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with the Borrower or any
Subsidiary or other Affiliate thereof as if such Person were not the Administrative Agent hereunder
and without any duty to account therefor to the Lenders.

          9.03 Exculpatory Provisions. The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein and in the other Loan Documents. Without
limiting the generality of the foregoing, the Administrative Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing;

     (b) shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated hereby
or by the other Loan Documents that the Administrative Agent is required to

 

 

exercise as directed in writing by the Required Lenders (or such other number or percentage
of the Lenders as shall be expressly provided for herein or in the other Loan Documents),
provided that the Administrative Agent shall not be required to take any action
that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Loan Document or applicable law; and

     (c) shall not, except as expressly set forth herein and in the other Loan Documents,
have any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Affiliates that is communicated to or
obtained by the Person serving as the Administrative Agent or any of its Affiliates in any
capacity.

          The Administrative Agent shall not be liable for any action taken or not taken by it (i) with
the consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 10.01 and 8.02) or (ii)
in the absence of its own gross negligence or willful misconduct. The Administrative Agent shall
be deemed not to have knowledge of any Default unless and until notice describing such Default is
given to the Administrative Agent by the Borrower, a Lender or an L/C Issuer.

          The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document, or the creation,
perfection or priority of any Lien purported to be created by the Collateral Documents, (v) the
value or the sufficiency of any Collateral or (vi) the satisfaction of any condition set forth in
Article IV or elsewhere herein, other than to confirm receipt of items expressly required
to be delivered to the Administrative Agent.

          9.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to
rely upon, and shall not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to
have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of
Credit, that by its terms must be fulfilled to the satisfaction of a Lender or an L/C Issuer, the
Administrative Agent may presume that such condition is satisfactory to such Lender or an L/C
Issuer unless the Administrative Agent shall have received notice to the contrary from such Lender
or an L/C Issuer prior to the making of such Loan or the issuance of such Letter of Credit. The
Administrative Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by

 

 

it, and shall not be liable for any action taken or not taken by it in accordance with the advice
of any such counsel, accountants or experts.

          9.05 Delegation of Duties. The Administrative Agent may perform any and all of its
duties and exercise its rights and powers hereunder or under any other Loan Document by or through
any one or more sub-agents appointed by the Administrative Agent. The Administrative Agent and any
such sub-agent may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties. The exculpatory provisions of this Article shall apply
to any such sub-agent and to the Related Parties of the Administrative Agent and any such
sub-agent, and shall apply to their respective activities in connection with the syndication of the
credit facilities provided for herein as well as activities as Administrative Agent.

          9.06 Resignation of Administrative Agent. The Administrative Agent may at any time
give notice of its resignation to the Lenders, the L/C Issuer and the Borrower. Upon receipt of
any such notice of resignation, the Required Lenders shall have the right, in consultation with the
Borrower, to appoint a successor, which shall be a bank with an office in the United States, or an
Affiliate of any such bank with an office in the United States. If no such successor shall have
been so appointed by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Administrative Agent gives notice of its resignation, then the retiring
Administrative Agent may on behalf of the Lenders and the L/C Issuer, appoint a successor
Administrative Agent meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become effective in accordance
with such notice and (a) the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder and under the other Loan Documents (except that in the case of any collateral
security held by the Administrative Agent on behalf of the Lenders or the L/C Issuers under any of
the Loan Documents, the retiring Administrative Agent shall continue to hold such collateral
security until such time as a successor Administrative Agent is appointed) and (b) all payments,
communications and determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender and each L/C Issuer directly, until such time as the
Required Lenders appoint a successor Administrative Agent as provided for above in this Section.
Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such successor
shall succeed to and become vested with all of the rights, powers, privileges and duties of the
retiring (or retired) Administrative Agent, and the retiring Administrative Agent shall be
discharged from all of its duties and obligations hereunder or under the other Loan Documents (if
not already discharged therefrom as provided above in this Section). The fees payable by the
Borrower to a successor Administrative Agent shall be the same as those payable to its predecessor
unless otherwise agreed between the Borrower and such successor. After the retiring Administrative
Agent’s resignation hereunder and under the other Loan Documents, the provisions of this Article
and Section 10.04 shall continue in effect for the benefit of such retiring Administrative Agent,
its sub-agents and their respective Related Parties in respect of any actions taken or omitted to
be taken by any of them while the retiring Administrative Agent was acting as Administrative Agent.

 

 

          Any resignation by Bank of America as Administrative Agent pursuant to this Section shall also
constitute its resignation as L/C Issuer. Upon the acceptance of a successor’s appointment as
Administrative Agent hereunder, (i) such successor shall succeed to and become vested with all of
the rights, powers, privileges and duties of Bank of America as L/C Issuer, (ii) Bank of America as
L/C Issuer shall be discharged from all of their respective duties and obligations hereunder or
under the other Loan Documents, (iii) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such succession or make
other arrangement satisfactory to Bank of America as L/C Issuer to effectively assume the
obligations of Bank of America as L/C Issuer with respect to such Letters of Credit issued by the
Bank of America as L/C Issuer, and (iv) all references to “Bank of America” herein (other than in
provisions that by their terms survive the termination of this Agreement) shall be deemed to refer
to the bank which is the successor Administrative Agent or to the primary bank Affiliate of the
successor Administrative Agent.

          9.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and each L/C
Issuer acknowledges that it has, independently and without reliance upon the Administrative Agent
or any other Lender or any of their Related Parties and based on such documents and information as
it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement.
Each Lender and each L/C Issuer also acknowledges that it will, independently and without reliance
upon the Administrative Agent or any other Lender or any of their Related Parties and based on such
documents and information as it shall from time to time deem appropriate, continue to make its own
decisions in taking or not taking action under or based upon this Agreement, any other Loan
Document or any related agreement or any document furnished hereunder or thereunder.

          9.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, none of
the Joint Lead Arrangers, Joint Book Managers or Documentation Agents listed on the cover page
hereof shall have any powers, duties or responsibilities under this Agreement or any of the other
Loan Documents, except in its capacity, as applicable, as the Administrative Agent, a Lender or the
L/C Issuer hereunder.

          9.09 Administrative Agent May File Proofs of Claim. In case of the pendency of any
receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to any Loan Party, the Administrative Agent
(irrespective of whether the principal of any Loan or L/C Obligation shall then be due and payable
as herein expressed or by declaration or otherwise and irrespective of whether the Administrative
Agent shall have made any demand on the Borrower) shall be entitled and empowered, by intervention
in such proceeding or otherwise

     (a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are owing
and unpaid and to file such other documents as may be necessary or advisable in order to
have the claims of the Lenders, the L/C Issuer and the Administrative Agent (including any
claim for the reasonable compensation,
expenses, disbursements and advances of the Lenders, the L/C Issuer and the
Administrative Agent and its agents and counsel and all other amounts due the Lenders, the
L/C Issuer and the Administrative

 

 

Agent under Sections 2.03
(i) and (j), 2.08 and 10.04)
allowed in such judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and the L/C Issuer to make such
payments to the Administrative Agent and, if the Administrative Agent shall consent to the making
of such payments directly to the Lenders and the L/C Issuer, to pay to the Administrative Agent any
amount due for the reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent
under Sections 2.08 and 10.04.

          Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or the L/C Issuer any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to
authorize the Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding.

          9.10 Collateral and Guaranty Matters. The Lenders and the L/C Issuer irrevocably
authorize the Administrative Agent, at its option and in its discretion,

     (a) to release any Lien on any property granted to or held by the Administrative Agent
under any Loan Document (i) upon termination of the Aggregate Commitments and payment in
full of all Obligations (other than contingent indemnification obligations) and the
expiration or termination of all Letters of Credit, (ii) that is sold or to be sold as part
of or in connection with any sale permitted hereunder or under any other Loan Document, or
(iii) if approved, authorized or ratified in writing in accordance with Section
10.01 hereof;

     (b) to release any Guarantor from its obligations under the Guaranty if such Person
ceases to be a Subsidiary as a result of a transaction permitted hereunder; and

     (c) to subordinate any Lien on any property granted to or held by the Administrative
Agent under any Loan Document to the holder of any Lien on such property that is permitted
by Section 7.01(i).

          Upon request by the Administrative Agent at any time, the Required Lenders will confirm in
writing the Administrative Agent’s authority to release its interest in particular types or items
of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this
Section 9.10. In each case as specified in this Section 9.10, the Administrative
Agent will, at the Borrower’s expense, execute and deliver to the applicable Loan Party such
documents as such Loan Party may reasonably request to evidence the release of such item of
Collateral from the assignment and security interest granted under the Collateral Documents, or to
release such Guarantor from its obligations under the Guaranty, in each case in accordance with the
terms of the Loan Documents and this Section 9.10.

 

 

ARTICLE X

MISCELLANEOUS

          10.01 Amendments, Etc.. (a) Subject to the provisions of Section 2.13(d) and
except as otherwise set forth in Section 10.01(b), no amendment or waiver of any provision
of this Agreement or any other Loan Document, and no consent to any departure by the Borrower or
any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders
and the Borrower or the applicable Loan Party, as the case may be, and acknowledged by the
Administrative Agent, and each such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given; provided, however, that no
such amendment, waiver or consent shall:

     (i) waive any condition set forth in Section 4.01, or, in the case of the
initial Credit Extension, Section 4.02, without the written consent of each Lender;

     (ii) extend or increase the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Section 8.02) without the written consent of such Lender;

     (iii) postpone any date fixed by this Agreement or any other Loan Document for any
payment (excluding mandatory prepayments) of principal, interest or fees or other amounts
due to the Lenders (or any of them), including the Maturity Date, or any scheduled reduction of the Revolving Credit
Facility hereunder or under any other Loan Document without the written consent of each
Lender entitled to such payment;

     (iv)
reduce or forgive the principal of, or the rate of interest specified herein on, any Loan or
L/C Borrowing, or (subject to clause (iv) of the second proviso to this Section
10.01) any fees or other amounts payable hereunder or under any other Loan Document
without the written consent of each Lender entitled to such amount; provided,
however, that only the consent of the Required Lenders shall be necessary (A) to
amend the definition of “Default Rate” or to waive any obligation of the Borrower to pay
interest or Letter of Credit Fees at the Default Rate or (B) to amend any financial covenant
hereunder (or any defined term used therein) even if the effect of such amendment would be
to reduce the rate of interest on any Loan or L/C Borrowing or to reduce any fee payable
hereunder;

     (v) change (A) Section 2.12 or 8.03 in a manner that would alter the
pro rata sharing of payments required thereby without the written consent of each Lender or
(B) the order of application of any reduction in the Commitments or any prepayment of Loans
among the Facilities from the application thereof set forth in the provisions of Section
2.04(b) or 2.05(b), respectively, in any manner that materially and adversely affects
the Lenders under a Facility without the written consent of (x) if such Facility is the Term
B Facility, the Required Term B Lenders and (y) if such Facility is the Revolving Credit
Facility, the Required Revolving Lenders;

     (vi) (a) change any provision of this Section 10.01 or the definition of
“Required Lenders” or any other provision hereof specifying the number or percentage of
Lenders required to amend, waive or otherwise modify any rights hereunder or make any

 

 

determination or grant any consent hereunder, without the written consent of each Lender,
(ii) change the definition of “Required Revolving Lenders” without the written consent of
each Revolving Credit Lender and (iii) change the definition of “Required Term B Lenders”
without the written consent of each Term B Lender;

     (vii) release all or substantially all of the Collateral in any transaction or series
of related transactions, without the written consent of each Lender;

     (viii) release all or substantially all of the value of the Guaranty, without the
written consent of each Lender; or

     (ix) impose any greater restriction on the ability of any Lender to assign any of its
rights or obligations hereunder without the written consent of Lenders having more than 50%
of the Aggregate Credit Exposures then in effect within each of the following classes of
Commitments, Loans and other Credit Extensions: (i) the class consisting of the Revolving
Credit Commitment combined on an aggregate basis, (ii) the class consisting of the Term B
Commitment, combined on an aggregate basis. For purposes of this clause, the aggregate
amount of each Lender’s risk participation and funded participation in L/C Obligations shall
be deemed to be held by such Lender;

and provided further that (i) no amendment, waiver or consent shall, unless in
writing and signed by each L/C Issuer in addition to the Lenders required above, affect the rights
or duties of the L/C Issuers under this Agreement or any Issuer Document relating to any Letter of
Credit issued or to be issued by an L/C Issuer; (ii) no amendment, waiver or consent shall, unless
in writing and signed by the Administrative Agent in addition to the Lenders required above, affect
the rights or duties of the Administrative Agent under this Agreement or any other Loan Document;
(iii) Section 10.06(i) may not be amended, waived or otherwise modified without the consent
of each Granting Lender all or any part of whose Loans are being funded by an SPC at the time of
such amendment, waiver or other modification; and (iv) each Fee Letter may be amended, or rights or
privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding
anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove
any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be
increased or extended without the consent of such Lender.

          (b) No amendment or waiver of any Revolving Facility Covenant, and no consent to any departure
by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by
the Required Revolving Lenders and the Borrower or the applicable Loan Party, as the case may be,
and no consent or signed writing from any Term B Lender shall be required with respect thereto.

          10.02 Notices and Other Communications; Facsimile Copies . (a) Notices
Generally. Except in the case of notices and other communications expressly permitted to be
given by telephone (and except as provided in subsection (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered by hand or overnight
courier service, mailed by certified or registered mail or sent by telecopier as follows,

 

 

and all notices and other communications expressly permitted hereunder to be given by telephone
shall be made to the applicable telephone number, as follows:

     (i) if to the Borrower, the Administrative Agent or any L/C Issuer, to the address,
telecopier number, electronic mail address or telephone number specified for such Person on
Schedule 10.02; and

     (ii) if to any other Lender, to the address, telecopier number, electronic mail address
or telephone number specified in its Administrative Questionnaire.

Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall
be deemed to have been given when received; notices sent by telecopier shall be deemed to have been
given when sent (except that, if not given during normal business hours for the recipient, shall be
deemed to have been given at the opening of business on the next business day for the recipient).
Notices delivered through electronic communications to the extent provided in subsection (b) below
shall be effective as provided in such subsection (b).

          (b) Electronic Communications. Notices and other communications to the Lenders and
the L/C Issuer hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by the Administrative
Agent, provided that the foregoing shall not apply to notices to any Lender or the L/C
Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has notified
the Administrative Agent that it is incapable of receiving notices under such Article by electronic
communication. The Administrative Agent or the Borrower may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to
particular notices or communications.

          Unless the Administrative Agent otherwise prescribes, (i) notices and other communications
sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement
from the intended recipient (such as by the “return receipt requested” function, as available,
return e-mail or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on the next business day
for the recipient, and (ii) notices or communications posted to an Internet or intranet website
shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as
described in the foregoing clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

          (c) Change of Address, Etc. Each of the Borrower, the Administrative Agent and each
L/C Issuer may change its address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto. Each other Lender may change its
address, telecopier or telephone number for notices and other communications hereunder by notice to
the Borrower, the Administrative Agent and each L/C Issuer.

          (d) Reliance by Administrative Agent, L/C Issuer and Lenders. The Administrative
Agent, each L/C Issuer and the Lenders shall be entitled to rely and act upon any

 

 

notices (including telephonic Committed Loan Notices ) purportedly given by or on behalf of the Borrower
even if (i) such notices were not made in a manner specified herein, were incomplete or were not
preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation thereof. The Borrower shall indemnify
the Administrative Agent, each L/C Issuer, each Lender and the Related Parties of each of them from
all losses, costs, expenses and liabilities resulting from the reliance by such Person on each
notice purportedly given by or on behalf of the Borrower. All telephonic notices to and other
telephonic communications with the Administrative Agent may be recorded by the Administrative
Agent, and each of the parties hereto hereby consents to such recording.

          10.03 No Waiver; Cumulative Remedies. No failure by any Lender, the L/C Issuer, the
Administrative Agent or any Loan Party to exercise, and no delay by any such Person in exercising,
any right, remedy, power or privilege hereunder or any other Loan Document shall operate as a
waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right,
remedy, power or privilege. The rights, remedies, powers and privileges herein provided, and
provided under each other Loan Document, are cumulative and not exclusive of any rights, remedies,
powers and privileges provided by law.

          10.04 Expenses; Indemnity; Damage Waiver. (a) Costs and Expenses. The
Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Administrative Agent
and its Affiliates (including the reasonable fees, charges and disbursements of counsel for the
Administrative Agent), in connection with the syndication of the credit facilities provided for
herein (in the case of fees to syndicate members, on the terms set forth in the Arrangement Fee
Letter), the preparation, negotiation, execution, delivery and administration of this Agreement and
the other Loan Documents or any amendments, modifications or waivers of the provisions hereof or
thereof (whether or not the transactions contemplated hereby or thereby shall be consummated), (ii)
all reasonable out-of-pocket expenses incurred by the L/C Issuer in connection with the issuance,
amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder
and (iii) all out-of-pocket expenses incurred by the Administrative Agent, any Lender or the L/C
Issuer (including the fees, charges and disbursements of any counsel for the Administrative Agent,
any Lender or the L/C Issuer), in connection with the enforcement or protection of its rights (A)
in connection with this Agreement and the other Loan Documents, including its rights under this
Section, or (B) in connection with Loans made or Letters of Credit issued hereunder, including all
such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect
of such Loans or Letters of Credit.

          (b) Indemnification by the Borrower. The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof), the other Agents, the Joint Lead Arrangers, the Joint Book
Managers, each Lender and the L/C Issuer, and each Related Party of any of the foregoing Persons
(each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from,
any and all losses, claims, damages, liabilities and related expenses (including the reasonable
fees, charges and disbursements of a single outside law firm for the Indemnitees (provided
that, in the event a conflict is identified among the Indemnitees, one additional counsel may be
selected on behalf of each Indemnitee subject to such conflict), incurred by any Indemnitee or
asserted against any Indemnitee by any third party or by the

 

 

Borrower or any other Loan Party
arising out of, in connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated hereby or thereby,
the performance by the parties hereto of their respective obligations hereunder or thereunder or
the consummation of the transactions contemplated hereby or thereby, (ii) any Loan or Letter of
Credit or the use or proposed use of the proceeds therefrom (including any refusal by the L/C
Issuer to honor a demand for payment under a Letter of Credit if the documents presented in
connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii)
any actual or alleged presence or release of Hazardous Materials on or from any property owned or
operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any
way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory, whether brought by a third party or by the Borrower or any
other Loan Party or any of the Borrower’s or such Loan Party’s directors, shareholders or
creditors, and regardless of whether any Indemnitee is a party thereto and whether or not any of
the transactions contemplated hereunder or under any of the other Loan Documents is consummated, in
all cases, whether or not caused by or arising, in whole or in part, out of the comparative,
contributory or sole negligence of the Indemnitee; provided that such indemnity shall not,
as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or
related expenses (x) are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of such Indemnitee
arising out of, related to or in connection with any of the matters referred to in either of
clause (i) or (ii) above or (y) result from a claim brought by the Borrower or any
other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s obligations
hereunder or under any other Loan Document, if the Borrower or such Loan Party has obtained a final
and nonappealable judgment in its favor on such claim as determined by a court of competent
jurisdiction.

          (c) Reimbursement by Lenders. To the extent that the Borrower for any reason fails to
indefeasibly pay any amount required under subsection (a) or (b) of this Section to
be paid by it to the Administrative Agent (or any sub-agent thereof), the L/C Issuer or any
Related Party of any of the foregoing (and without limiting its
obligation to do so), each Lender severally agrees to pay to the Administrative
Agent (or any such sub-agent), the L/C Issuer or such Related Party, as the case may be, such
Lender’s Applicable Percentage (determined as of the time that the applicable unreimbursed expense
or indemnity payment is sought) of such unpaid amount, provided that the unreimbursed
expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was
incurred by or asserted against the Administrative Agent (or any such sub-agent) or the L/C Issuer
in its capacity as such, or against any Related Party of any of the foregoing acting for the
Administrative Agent (or any such sub-agent) or L/C Issuer in connection with such capacity. The
obligations of the Lenders under this subsection (c) are subject to the provisions of Section
2.11(d).

          (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, the Borrower shall not assert, and hereby waives, any claim against any Indemnitee,
on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to
direct or actual damages) arising out of, in connection with, or as a result of, this Agreement,
any other Loan Document or any agreement or instrument contemplated hereby, the transactions
contemplated hereby or thereby, any Loan or Letter of Credit or the use of the

 

 

proceeds thereof. No Indemnitee referred to in subsection (b) above shall be liable for any damages arising
from the use by unintended recipients of any information or other materials distributed by it
through electronic telecommunications or other information transmission systems customarily used
for transactions of this type or otherwise authorized by the Borrower in connection with this
Agreement or the other Loan Documents or the transactions contemplated hereby or thereby, except to
the extent that such damages arise from the gross negligence or willful misconduct of such
Indemnitee in the use of such electronic telecommunications or other information transmission
systems.

          (e) Payments. All amounts due under this Section shall be payable not later than ten
Business Days after demand therefor.

          (f) Survival. The agreements in this Section shall survive the resignation of the
Administrative Agent and any L/C Issuer, the replacement of any Lender, the termination of the
Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

          10.05 Payments Set Aside. To the extent that any payment by or on behalf of the
Borrower is made to the Administrative Agent, the L/C Issuer or any Lender, or the Administrative
Agent, the L/C Issuer or any Lender exercises its right of setoff, and such payment or the proceeds
of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or
preferential, set aside or required (including pursuant to any settlement entered into by the
Administrative Agent, the L/C Issuer or such Lender in its discretion) to be repaid to a trustee,
receiver or any other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment
had not been made or such setoff had not occurred, and (b) each Lender and the L/C Issuer severally
agrees to pay to the
Administrative Agent upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such
demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from
time to time in effect. The obligations of the Lenders and the L/C Issuer under clause (b)
of the preceding sentence shall survive the payment in full of the Obligations and the termination
of this Agreement.

          10.06 Successors and Assigns. (a) Successors and Assigns Generally. The
provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that neither the Borrower nor
any other Loan Party may assign or otherwise transfer any of its rights or obligations hereunder
without the prior written consent of the Administrative Agent and each Lender and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except (i) to an assignee
in accordance with the provisions of Section 10.06(b), (ii) by way of participation in
accordance with the provisions of Section 10.06(d), (iii) by way of pledge or assignment of
a security interest subject to the restrictions of
Section 10.06(g), or (iv) to an SPC in
accordance with the provisions of Section 10.06(i) (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties hereto, their
respective successors and assigns permitted hereby, Participants to the extent provided in
subsection (d) of this Section

 

 

and, to the extent expressly contemplated hereby, the Related
Parties of each of the Administrative Agent, the L/C Issuer and the Lenders) any legal or equitable
right, remedy or claim under or by reason of this Agreement. Notwithstanding any other provision
of this Agreement, if at any time a Lender proposes to assign or otherwise transfer all or any
portion of its rights hereunder to any Person that is not a Lender, an Affiliate of a Lender or an
Approved Fund and is not a commercial bank, finance company, insurance company, financial
institution or Fund (a “Non-Financial Entity”), then such Lender shall notify the Administrative
Agent that such proposed assignee or transferee is a Non-Financial Entity. Prior to granting its
approval to such proposed assignment or transfer, the Administrative Agent shall notify the
Borrower of the identity of such Non-Financial Entity. No assignment shall be made to any
Non-Financial Entity that is designated by the Borrower, within three Business Days after receipt
by the Borrower of notification from the Administrative Agent pursuant to the immediately preceding
sentence, as a direct or indirect competitor of Holdings or any Subsidiary of Holdings.

          (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all or a
portion of its Commitment(s) and the Loans (including for purposes of this Section
10.06(b), participations in L/C Obligations) at the time owing to it); provided that
any such assignment shall be subject to the following conditions:

          (i) Minimum Amounts.

     (A) in the case of an assignment of the entire remaining amount of the
assigning Lender’s Commitment under any Facility and the Loans at the time owing to
it under such Facility or in the case of an assignment to a Lender, an
Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned;
and

     (B) in any case not described in subsection (b)(i)(A) of this Section, the
aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the Commitment is not then in effect, the principal
outstanding balance of the Loans of the assigning Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with respect to
such assignment is delivered to the Administrative Agent or, if “Trade Date” is
specified in the Assignment and Assumption, as of the Trade Date, shall not be less
than $5,000,000, in the case of any assignment in respect of the Revolving Credit
Facility, or $1,000,000, in the case of any assignment in respect of the Term
Facility, unless each of the Administrative Agent and, so long as no Event of
Default has occurred and is continuing, the Borrower otherwise consents (each such
consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met.

 

 

     (ii) Proportionate Amounts. Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and obligations
under this Agreement with respect to the Loans or the Commitment assigned, except that this
clause (ii) shall not prohibit any Lender from assigning all or a portion of its rights and
obligations among separate Facilities on a non-pro rata basis.

     (iii) Required Consents. No consent shall be required for any
assignment except to the extent required by subsection (a) or subsection
(b)(i)(B) of this Section and, in addition:

     (A) the consent of the Borrower (such consent not to be unreasonably withheld
or delayed) shall be required unless (1) an Event of Default has occurred and is
continuing at the time of such assignment or (2) such assignment is to a Lender, an
Affiliate of a Lender or an Approved Fund;

     (B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required for assignments in respect of
(i) any Term Commitment or Revolving Credit Commitment if such assignment is to a
Person that is not a Lender with a Commitment in respect of the applicable Facility,
an Affiliate of such Lender or an Approved Fund with respect to such Lender or (ii)
any Term Loan to a Person that is not a Lender, an Affiliate of a Lender or an
Approved Fund; and

     (C) the consent of the L/C Issuer (such consent not to be unreasonably withheld
or delayed) shall be required for any assignment that increases the
obligation of the assignee to participate in exposure under one or more Letters
of Credit (whether or not then outstanding).

     (iv) Assignment and Assumption. The parties to each assignment shall execute
and deliver to the Administrative Agent an Assignment and Assumption, together with a
processing and recordation fee in the amount, if any, required as set forth in Schedule
11.06; provided, however, that the Administrative Agent may, in its sole
discretion, elect to waive such processing and recordation fee in the case of any
assignment. The assignee, if it shall not be a Lender, shall deliver to the Administrative
Agent an Administrative Questionnaire.

     (v) No Assignment to Borrower. No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries (other than any Affiliate that
is not Holdings or a Subsidiary of Holdings and becomes a Lender in connection with the
primary syndication of the Facilities, or an Affiliate of such a Lender).

     (vi) No Assignment to Natural Persons. No such assignment shall be made to a
natural person.

          (c) Subject to acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section, from and after the effective date specified in each Assignment and
Assumption, the assignee thereunder shall be a party to this Agreement and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and

 

 

obligations of a Lender
under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Assumption, be released from its obligations under this Agreement
(and, in the case of an Assignment and Assumption covering all of the assigning Lender’s rights and
obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 3.01, 3.04, 3.05 and
10.04 with respect to facts and circumstances occurring prior to the effective date of such
assignment). Upon request and following the delivery to the Borrower of the original note issued
to the assignor Lender, if any, the Borrower (at its expense) shall execute and deliver a
replacement Note to the assignee Lender. Any assignment or transfer by a Lender of rights or
obligations under this Agreement that does not comply with this subsection shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such rights and
obligations in accordance with Section 10.06(d).

          (d) Register. The Administrative Agent, acting solely for this purpose as an agent of
the Borrower, shall maintain at the Administrative Agent’s Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the
Lenders, and the Commitments of, and principal amounts of the Loans and L/C Obligations owing to,
each Lender pursuant to the terms hereof from time to time (the “Register”). The entries
in the Register shall be conclusive, and the Borrower, the Administrative Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Borrower and any Lender, at any reasonable time and from
time to time upon reasonable prior notice.

          (e) Participations. Any Lender may at any time, without the consent of, or notice to,
the Borrower or the Administrative Agent, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower’s Affiliates or Subsidiaries) (other than an
Affiliate that qualifies as an Eligible Assignee pursuant to the definition of “Eligible Assignee”)
or, subject to the last two sentences of this clause (e), a Non-Financial Entity) (each, a
“Participant”) in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender’s
participations in L/C Obligations) owing to it); provided that (i) such Lender’s
obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations and (iii) the
Borrower, the Administrative Agent, the Lenders and the L/C Issuer shall continue to deal solely
and directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to approve any
amendment, modification or waiver of any provision of this Agreement; provided that such
agreement or instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in clauses (iii),
(iv), (vii) or (viii) of the first proviso to Section 10.01 that directly affects such
Participant. Subject to subsection (f) of this Section, the Borrower agrees that each
Participant shall be entitled to the benefits of Sections 3.01, 3.04 and
3.05 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to Section 10.06(b). To the extent permitted by law, each Participant also shall
be entitled to the benefits of Section 10.08 as though it were a

 

 

Lender, provided
such Participant agrees to be subject to Section 2.12 as though it were a Lender.
Notwithstanding the foregoing, if at any time a Lender proposes to sell a participation to a
Non-Financial Entity, then such Lender shall notify the Borrower of the identity of such proposed
participant. No participation shall be sold to any Non-Financial Entity that is designated by the
Borrower, within three Business Days after receipt by the Borrower of notification from the
applicable Lender pursuant to the immediately preceding sentence, as a direct or indirect
competitor of Holdings or any Subsidiary of Holdings.

          (f) Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.01 or 3.04 than the applicable Lender
would have been entitled to receive with respect to the participation sold to such Participant,
unless the sale of the participation to such Participant is made with the Borrower’s prior written
consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to
the benefits of Section 3.01 unless the Borrower is notified of the participation sold to
such Participant and such Participant agrees, for the benefit of the Borrower, to comply with
Section 3.01(e) and (f) as though it were a Lender.

          (g)
Certain Pledges. Any Lender may, without the consent of the
Borrower or the Administrative Agent, at any time pledge or assign a security interest
in all or any portion of its rights under this Agreement (including under its Note, if any) to
secure obligations of such Lender, including any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment shall release such Lender
from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as
a party hereto.

          (h) Electronic Execution of Assignments. The words “execution,” “signed,”
“signature,” and words of like import in any Assignment and Assumption shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature or the use of a
paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
applicable law, including the Federal Electronic Signatures in Global and National Commerce Act,
the New York State Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act.

          (i) Special Purpose Funding Vehicles. Notwithstanding anything to the contrary
contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding
vehicle identified as such in writing from time to time by the Granting Lender to the
Administrative Agent and the Borrower (an “SPC”) the option to provide all or any part of
any Loan that such Granting Lender would otherwise be obligated to make pursuant to this Agreement;
provided that (i) nothing herein shall constitute a commitment by any SPC to fund any Loan,
and (ii) if an SPC elects not to exercise such option or otherwise fails to make all or any part of
such Loan, the Granting Lender shall be obligated to make such Loan pursuant to the terms hereof
or, if it fails to do so, to make such payment to the Administrative Agent as is required under
Section 2.11(b)(ii). Each party hereto hereby agrees that (i) neither the grant to any SPC
nor the exercise by any SPC of such option shall increase the costs or expenses or otherwise
increase or change the obligations of any Loan Party under this Agreement (including the Borrower’s
obligations under Section 3.04), (ii) no SPC shall be liable for any indemnity or similar
payment obligation under this Agreement for which a Lender would be liable, and (iii)

 

 

the Granting Lender shall for all purposes, including the approval of any amendment, waiver or other
modification of any provision of any Loan Document, remain the lender of record hereunder. The
making of a Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the
same extent, and as if, such Loan were made by such Granting Lender. In furtherance of the
foregoing, each party hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the payment in full of all
outstanding commercial paper or other senior debt of any SPC, it will not institute against, or
join any other Person in instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency, or liquidation proceeding under the laws of the United States or any State thereof.
Notwithstanding anything to the contrary contained herein, any SPC may (i) with notice to, but
without prior consent of the Borrower and the Administrative Agent and with the payment of a
processing fee in the amount of $2,500, assign all or any portion of its right to receive payment
with respect to any Loan to the Granting Lender and (ii) disclose on a confidential basis any
non-public information relating to its funding of Loans to any rating agency, commercial paper
dealer or provider of any surety or Guarantee or credit or liquidity enhancement to such SPC.

          (i) Resignation as L/C Issuer after Assignment. Notwithstanding anything to the
contrary contained herein, if at any time Bank of America assigns all of its Revolving Credit
Commitments and Revolving Credit Loans pursuant to Section 10.06(b), Bank of America may,
upon 30 days’ notice to the Borrower and the Lenders, resign as L/C Issuer. In the event of any
such resignation as L/C Issuer, the Borrower shall be entitled to appoint from among the Lenders a
successor L/C Issuer hereunder; provided, however, that no failure by the Borrower
to appoint any such successor shall affect the resignation of Bank of America as L/C Issuer. If
Bank of
America resigns as L/C Issuer, it shall retain all the rights, powers, privileges and duties
of the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective
date of its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the
right to require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed
Amounts pursuant to Section 2.03(c)). Upon the appointment of a successor L/C Issuer, (a)
such successor shall succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring L/C Issuer and (b) the successor L/C Issuer shall issue letters of credit in
substitution for the Letters of Credit, if any, outstanding at the time of such succession or make
other arrangements satisfactory to Bank of America to effectively assume the obligations of Bank of
America with respect to such Letters of Credit.

          
10.07 Treatment of Certain Information; Confidentiality. Each of the Administrative
Agent, the Lenders and the L/C Issuer agrees to maintain the confidentiality of the Information (as
herein defined), except that Information may be disclosed (a) to its Affiliates and to its
Affiliates’ respective partners, directors, officers, employees,
agents, advisors, auditors and
representatives (it being understood that the Persons to whom such disclosure is made will be
informed of the confidential nature of such Information and instructed to keep such Information
confidential); (b) to the extent requested by any regulatory authority purporting to have
jurisdiction over it; (c) to the extent required by applicable Laws or guidelines, requests or
directed duties of, or agreements with, any Governmental Authority (whether or not having the force
of law) or obligations imposed by non-governmental international
bodies or regulations or obligations imposed by non-governmental
international bodies or regulations by any subpoena or similar legal process; (d) to any other party to this
Agreement; (e) in connection with the exercise of any remedies hereunder or any suit, action or
proceeding relating to this Agreement or the enforcement of rights hereunder; (f) subject to an

 

 

agreement containing provisions substantially the same as those of this Section 10.07, to
(i) any Eligible Assignee of or Participant in, or any prospective Eligible Assignee of or
Participant in, any of its rights or obligations under this
Agreement, (ii) any pledge referred to in Section 10.06(g)
or (iii) any direct or
indirect contractual counterparty or prospective counterparty (or such contractual counterparty’s
or prospective counterparty’s professional advisor) to any credit derivative transaction relating
to obligations of the Loan Parties; (g) with the consent of the Borrower; (h) to the extent such
Information (x) becomes publicly available other than as a result of a breach of this Section
10.07 or (y) becomes available to the Administrative Agent, any Lender, the L/C Issuer or any
of their respective Affiliates on a nonconfidential basis from a source other than the Borrower;
(i) to any state, Federal or foreign authority or examiner (including the National Association of
Insurance Commissioners or any other similar organization) regulating any Lender; or (j) to any
rating agency when required by it (it being understood that, prior to any such disclosure, such
rating agency shall undertake to preserve the confidentiality of any Information relating to the
Loan Parties received by it from such Lender); provided that, unless specifically
prohibited by applicable Law or court order, each Lender shall notify the Borrower of any request
by any Governmental Authority or representative thereof (other than any such request in connection
with an examination of the financial condition of such Lender by such Governmental Authority) or
subpoena for disclosure of any such non-public information prior to the disclosure of such
information. In addition, the Administrative Agent, the L/C Issuer and the Lenders may disclose
the existence of this Agreement and information about this Agreement to market data collectors,
similar service providers to the lending industry, and service providers to the Administrative
Agent and the Lenders in connection with the administration and management of this Agreement, the
other Loan Documents, the
Commitments, and the Credit Extensions. For the purposes of this Section, “Information” means
all information received from any Loan Party relating to any Loan Party or its business, other than
any such information that is available to the Administrative Agent, any L/C Issuer or any Lender on
a nonconfidential basis prior to disclosure by any Loan Party; provided that, in the case
of information received from a Loan Party after the date hereof, such information is clearly
identified in writing at the time of delivery as confidential. Any Person required to maintain the
confidentiality of Information as provided in this Section 10.07 shall be considered to
have complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to its own
confidential information. The agreements in this Section shall survive any assignment by a Lender,
any sale of a participation by a Lender, the replacement of any Lender, the termination of the
Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations.

          10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing,
each Lender, each L/C Issuer and each of their respective Affiliates is hereby authorized at any
time and from time to time, to the fullest extent permitted by applicable law, to set off and apply
any and all deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any time owing by such
Lender, such L/C Issuer or any such Affiliate to or for the credit or the account of the Borrower
or any other Loan Party against any and all of the obligations of the Borrower or such Loan Party
now or hereafter existing under this Agreement or any other Loan Document to such Lender or such
L/C Issuer, irrespective of whether or not such Lender or such L/C Issuer shall have made any
demand under this Agreement or any other Loan Document and although such obligations of the
Borrower or such Loan Party may be contingent or unmatured or are

 

 

owed to a branch or office of
such Lender or such L/C Issuer different from the branch or office holding such deposit or
obligated on such indebtedness. The rights of each Lender, each L/C Issuer and their respective
Affiliates under this Section are in addition to other rights and remedies (including other rights
of setoff) that such Lender, such L/C Issuer or their respective Affiliates may have. Each Lender
and each L/C Issuer agrees to notify the Borrower and the Administrative Agent promptly after any
such setoff and application, provided that the failure to give such notice shall not affect the
validity of such setoff and application.

          10.09 Interest Rate Limitation. Notwithstanding anything to the contrary contained in
any Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed
the maximum rate of non-usurious interest permitted by applicable Law (the “Maximum Rate”). If the
Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum
Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds such
unpaid principal, refunded to the Borrower. In determining whether the interest contracted for,
charged, or received by the Administrative Agent or a Lender exceeds the Maximum Rate, such Person
may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal
as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the
effects thereof, and (c) amortize, prorate, allocate, and spread in equal or
unequal parts the total amount of interest throughout the contemplated term of the Obligations
hereunder.

          10.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof
that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.

          10.11 Survival of Representations and Warranties. All representations and warranties
made hereunder and in any other Loan Document or other document delivered pursuant hereto or
thereto or in connection herewith or therewith shall survive the execution and delivery hereof and
thereof. Such representations and warranties have been or will be relied upon by each Agent and
each Lender, regardless of any investigation made by any Agent or any Lender or on their behalf and
notwithstanding that any Agent or any Lender may have had notice or knowledge of any Default at the
time of any Credit Extension, and shall continue in full force and effect as long as any Loan or
any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall
remain outstanding.

          10.12 Severability. If any provision of this Agreement or the other Loan Documents is
held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the
remaining provisions of this Agreement and the other Loan Documents shall not be affected or
impaired thereby and (b) the parties shall endeavor in good faith

 

 

negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable provisions. The
invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

          10.13 Replacement of Lenders. If (i) any Lender or any participant of such Lender
requests compensation under Section 3.04, or (ii) if the Borrower is required to pay any additional
amount to any Lender or any participant of such Lender or any Governmental Authority for the
account of any Lender or any participant of such Lender pursuant to Section 3.01, or (iii)
if any Lender is a Defaulting Lender, or (iv) if any amendment, waiver or consent hereunder
requiring the consent of all Lenders or all Lenders directly affected thereby would be effective
but for the failure of no more than two Lenders to consent thereto (each, a “Non-Consenting
Lender”) or if any other
circumstance exists hereunder that gives the Borrower the right to replace a Lender as a party
hereto, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance
with and subject to the restrictions contained in, and consents required by, Section
10.06), all of its interests, rights and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment), provided that:

     (a) the Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 10.06(b);

     (b) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and L/C Advances, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder and under the other Loan Documents (including any
amounts under Section 3.05) from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

     (c) in the case of any such assignment resulting from a claim for compensation under
Section 3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments thereafter;

     (d) such assignment does not conflict with applicable Laws or guidelines, directed
duties or requests of, or agreements with, any Governmental Authority (whether or not having
the force of law); and

     (e) no more than two (2) Non-Consenting Lenders may be replaced in connection with any
proposed amendment, waiver or consent.

          A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

 

 

          10.14 Governing Law; Jurisdiction; Etc. (a) GOVERNING LAW. THIS AGREEMENT
SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

          (b) SUBMISSION TO JURISDICTION. THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY
AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR FOR
RECOGNITION OR ENFORCEMENT OF ANY
JUDGMENT, AND EACH OF THE PARTIES HERETO IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL
CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK
STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF
THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE
CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER
MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY
RIGHT THAT THE ADMINISTRATIVE AGENT, ANY LENDER OR THE L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY
ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR
ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

          (c) WAIVER OF VENUE. THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT
MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN PARAGRAPH (B) OF
THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION
OR PROCEEDING IN ANY SUCH COURT.

          (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS
IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS AGREEMENT WILL AFFECT
THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

          10.15 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS

 

 

AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          10.16
USA PATRIOT Act Notice. Each Lender (unless such Lender is
not, in its sole determination, subject to the Act referred to below) and the Administrative Agent (for itself
and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the requirements of
the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”),
it is required to obtain, verify and record information that identifies each Loan Party, which
information includes the name and address of each Loan Party and other information that will allow
such Lender or the Administrative Agent, as applicable, to identify each Loan Party in accordance
with the Act.

          10.17 No Advisory or Fiduciary Responsibility. In connection with all aspects of each
transaction contemplated hereby, the Borrower and Holdings each acknowledge and agree, and
acknowledge their respective Affiliates’ understanding, that: (i) the credit facilities provided
for hereunder and any related arranging or other services in connection therewith (including in
connection with any amendment, waiver or other modification hereof or of any other Loan Document)
are an arm’s-length commercial transaction between the Borrower, Holdings and their respective
Affiliates, on the one hand, and the Administrative Agent and each of the Lead Arrangers, on the
other hand, and each of the Borrower and Holdings is capable of evaluating and understanding and
understands and accepts the terms, risks and conditions of the transactions contemplated hereby and
by the other Loan Documents (including any amendment, waiver or other modification hereof or
thereof); (ii) in connection with the process leading to such transaction, the Administrative Agent
and each Lead Arranger each is and has been acting solely as a principal and is not the financial
advisor, agent or fiduciary, for the Borrower, Holdings or any of their respective Affiliates,
stockholders, creditors or employees or any other Person; (iii) neither the Administrative Agent
nor any Lead Arranger has assumed or will assume an advisory, agency or fiduciary responsibility in
favor of the Borrower or Holdings with respect to any of the transactions contemplated hereby or
the process leading thereto, including with respect to any amendment, waiver or other modification
hereof or of any other Loan Document (irrespective of whether the Administrative Agent or any Lead
Arranger has advised or is currently advising the Borrower, Holdings or any of their respective
Affiliates on other matters) and neither the Administrative Agent nor any Lead Arranger has any
obligation to the Borrower, Holdings or any of their respective Affiliates with respect to the
transactions contemplated hereby except those obligations expressly set forth herein and in the
other Loan Documents; (iv) the Administrative Agent and each of the Lead Arrangers and their
respective Affiliates may be engaged in a broad range of transactions that involve interests that
differ from those of the Borrower, Holdings and their respective Affiliates, and neither the
Administrative Agent nor any Lead Arranger has any obligation to disclose any of such interests by
virtue of any advisory, agency or fiduciary relationship; and (v) the Administrative Agent and each
of the

 

 

Lead Arrangers have not provided and will not provide any legal, accounting, regulatory or
tax advice with respect to any of the transactions contemplated hereby (including any amendment,
waiver or other modification hereof or of any other Loan Document) and each of the Borrower and
Holdings has consulted its own legal, accounting, regulatory and tax advisors to the extent it has
deemed appropriate. Each of the Borrower and Holdings hereby waives and releases, to the fullest
extent permitted by law, any claims that it may have against the Administrative Agent and either of
the Lead Arrangers with respect to any breach or alleged breach of agency or fiduciary duty arising
out of the Transaction.

 

 

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

	 	 	 	 	 
	 	 	CRICKET COMMUNICATIONS, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Dean M. Luvisa
	 

	 	 	 	 
	 

	 	 	 	Name: Dean M. Luvisa
	 

	 	 	 	Title: Acting Chief Financial Officer
	 
	 	 	 	 
	 	 	LEAP WIRELESS INTERNATIONAL, INC.
	 
	 	 	 	 
	 

	 	By:	 	/s/ Dean M. Luvisa
	 

	 	 	 	 
	 

	 	 	 	Name: Dean M. Luvisa
	 

	 	 	 	Title: Acting Chief Financial Officer

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as

Administrative Agent

 	 
	 	By:  	/s/ Scott Conner
 	 
	 	 	Name:  	Scott Conner 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as a

Lender and L/C Issuer

 	 
	 	By:  	/s/ Scott Conner
 	 
	 	 	Name:  	Scott Conner 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	EXPORT DEVELOPMENT CANADA

 	 
	 	By:  	/s/ L. Rebolledo
 	 
	 	 	Name:  	Luisa Rebolledo 	 
	 	 	Title:  	Financial Services Manager 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	     /s/ J. McIntyre
 	 
	 	 	Name:  	James McIntyre 	 
	 	 	Title:  	Manager 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GOLDMAN SACHS CREDIT PARTNERS L.P.

 	 
	 	By:  	/s/ W. W. Archer
 	 
	 	 	Name:  	William Archer 	 
	 	 	Title:  	Managing Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	Citicorp North America, Inc.

 	 
	 	By:  	/s/ Eileen L. Casson
 	 
	 	 	Name:  	Eileen L. Casson 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	DEUTSCHE BANK TRUST COMPANY,

AMERICAS

 	 
	 	By:  	/s/ illegible
 	 
	 	 	Name:  	Anca Triffen 	 
	 	 	Title:  	Director 	 
	 

	 	 	 	 	 
	 	 	 
	 	By:  	     /s/ M. M. Tarkington
 	 
	 	 	Name:  	Marcus M. Tarkington 	 
	 	 	Title:  	Director 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	MORGAN STANLEY BANK

 	 
	 	By:  	/s/ D. Twenge
 	 
	 	 	Name:  	Daniel Twenge 	 
	 	 	Title:  	Vice President

Morgan Stanley Bankexv10w2

Table of Contents

Exhibit 10.2

AMENDED AND RESTATED SECURITY AGREEMENT

Dated June 16, 2006

From

The Grantors referred to herein

as Grantors

to

BANK OF AMERICA, N.A.

as Collateral Agent

 

 

TABLE
 OF  CONTENTS

	 	 	 	 	 	 
	Section	 	 	 	Page
	Section 1.

	 	Grant of Security
	 	 	5
	Section 2.

	 	Security for Obligations
	 	 	10
	Section 3.

	 	Grantors Remain Liable
	 	 	10
	Section 4.

	 	Delivery and Control of Security Collateral
	 	 	10
	Section 5.

	 	Maintaining the Account Collateral
	 	 	11
	Section 6.

	 	Investing of Amounts in the Collateral Account and the L/C Collateral Account	 	 	13
	Section 7.

	 	Release of Amounts
	 	 	13
	Section 8.

	 	Maintaining Electronic Chattel Paper, Transferable Records and Letter-of-Credit Rights and Giving
Notice of Commercial Tort Claims
	 	 	14
	Section 9.

	 	Representations and Warranties
	 	 	14
	Section 10.

	 	Further Assurances
	 	 	19
	Section 11.

	 	As to Equipment and Inventory
	 	 	20
	Section 12.

	 	Insurance
	 	 	20	 
	Section 13.

	 	Post-Closing Changes; Bailees; Collections on Assigned Agreements, Receivables and Related Contracts
	 	 	21
	Section 14.

	 	As to Intellectual Property Collateral
	 	 	22
	Section 15.

	 	Voting Rights; Dividends; Etc.
	 	 	24
	Section 16.

	 	As to Letter-of-Credit Rights
	 	 	25
	Section 17.

	 	As to the Denali Spectrum Manager Security Interests
	 	 	26
	Section 18.

	 	Transfers and Other Liens; Additional Shares
	 	 	26
	Section 19.

	 	Collateral Agent Appointed Attorney-in-Fact
	 	 	26
	Section 20.

	 	Collateral Agent May Perform
	 	 	27
	Section 21.

	 	The Collateral Agent’s Duties
	 	 	27
	Section 22.

	 	Remedies
	 	 	28

 

Table of Contents

	 	 	 	 	 	 
	Section	 	 	 	Page
	Section 23.

	 	Amendments; Waivers; Additional Grantors; Supplements to Schedules, Etc.
	 	 	30
	Section 24.

	 	Notices, Etc.
	 	 	30
	Section 25.

	 	Continuing Security Interest; Assignments under the Credit Agreement
	 	 	31
	Section 26.

	 	Release; Termination
	 	 	32
	Section 27.

	 	Execution in Counterparts
	 	 	32
	Section 28.

	 	Governing Law
	 	 	34

	 	 	 	 	 
	Schedules I

	 	-
	 	Name, Location, Chief Executive Office, Type Of Organization, Jurisdiction Of Organization And
Organizational Identification Number
	Schedule II

	 	-
	 	Pledged Equity and Pledged Debt
	Schedule III

	 	-
	 	Assigned Agreements
	Schedule IV

	 	-
	 	Changes in Name, Location, Etc.
	Schedule V

	 	-
	 	Patents, Trademarks and Trade Names and Copyrights
	Schedule VI

	 	-
	 	IP Agreements
	Schedule VII

	 	-
	 	Account Collateral
	Schedule VIII

	 	-
	 	Account Collateral not Subject to Account Control Agreement
	Schedule IX

	 	-
	 	Commercial Tort Claims
	Schedule X

	 	-
	 	Letters of Credit
	 
	 	 	 	 
	Exhibits
	 	 	 	 
	 
	 	 	 	 
	Exhibit A

	 	-
	 	Form of Security Agreement Supplement
	Exhibit B

	 	-
	 	Form of Consent and Agreement
	Exhibit C

	 	-
	 	Form of Amended and Restated Intellectual Property Security Agreement
	Exhibit D

	 	-
	 	Form of Intellectual Property Security Agreement Supplement
	Exhibit E

	 	-
	 	Form of Consent to Assignment of Letter of Credit Rights

 

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AMENDED AND RESTATED SECURITY AGREEMENT

          AMENDED AND RESTATED SECURITY AGREEMENT dated June 16, 2006 made by CRICKET COMMUNICATIONS,
INC., a Delaware corporation (the “Borrower”), LEAP WIRELESS INTERNATIONAL, INC., a Delaware
corporation (“Holdings”), the other Persons listed on the signature pages hereof and the Additional
Grantors (as defined in Section 23) (the Borrower, Holdings, the Persons so listed and the
Additional Grantors being, collectively, the “Grantors”), to BANK OF AMERICA, N.A. (“Bank of
America”), as collateral agent (in such capacity, together with any successor collateral agent
appointed pursuant to Article IX of the Credit Agreement (as hereinafter defined), the “Collateral
Agent”) for the Secured Parties (as defined in the Credit Agreement).

          PRELIMINARY STATEMENTS.

          (1) The Borrower and Holdings were parties to that certain credit agreement dated as of
January 10, 2005 (as amended by that certain Amendment No. 1 dated as of July 22, 2005 and that
certain Amendment No. 2 dated as of July 22, 2005, the “Initial Credit Agreement”)) with certain
lenders from time to time party thereto and Bank of America, as administrative agent and L/C
issuer.

          (2) Pursuant to the Initial Credit Agreement, the Grantors entered into that certain security
agreement dated January 10, 2005 (the “Initial Security Agreement”) in order to grant to Bank of
America, as collateral agent, for the ratable benefit of the secured parties (as such term is
defined in the Initial Security Agreement) a security interest in certain collateral.

          (3) The Borrower and Holdings requested, and the Lenders agreed, to amend and restate the
Initial Credit Agreement, and therefore the Borrower and Holdings have entered into an Amended and
Restated Credit Agreement dated as of the date hereof (said Agreement, as it may hereafter be
amended, amended and restated, supplemented or otherwise modified from time to time, being the
“Credit Agreement”) with the Lenders and the Agents (each as defined therein).

          (4) Pursuant to the Credit Agreement, the Grantors have agreed to amend and restate the
Initial Security Agreement and are therefore entering into this Agreement in order to grant to the
Collateral Agent, for the ratable benefit of the Secured Parties, a security interest in the
Collateral (as hereinafter defined).

          (5) Each Grantor is the owner of the shares of stock or other Equity Interests set forth
opposite such Grantor’s name on and as otherwise described in Part I of Schedule II hereto (the
“Initial Pledged Equity”) and in Part III of Schedule II hereto and issued by the Persons named
therein and of the indebtedness set forth opposite such Grantor’s name on and as otherwise
described in Part II of Schedule II hereto (the “Initial Pledged Debt”) and in Part IV of Schedule
II hereto and issued by the obligors named therein.

          (6) The Borrower and Holdings have security entitlements (the “Pledged Security Entitlements”)
with respect to all the financial assets (the “Pledged Financial Assets”) credited from time to
time to the Borrower’s and Holdings’ accounts (other than
financial assets held in an Other Deposit Account), respectively, as described in Schedule VII hereto
(the “Securities Accounts”).

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          (7) The Borrower has opened a l/c collateral deposit account, Account No. 1233304415 (the “L/C
Collateral Account”), with Bank of America at its office at 1850 Gateway Blvd, 3rd Floor, Concord,
California 94520, in the name of the Collateral Agent and under the sole control and dominion of
the Collateral Agent and subject to the terms of this Agreement.

          (8) The Borrower has opened a collateral deposit account, Account No. 1233304434 (the
“Collateral Account”), with Bank of America at its office at 1850 Gateway Blvd, 3rd Floor, Concord,
California 94520, in the name of the Borrower but under the sole dominion and control of the
Collateral Agent and subject to the terms of this Agreement.

          (9) The Borrower is the beneficiary under certain letters of credit as described in Schedule
X.

          (10) It is a condition precedent to the making of Loans and the issuance of Letters of Credit
by the Lenders under the Credit Agreement and the entry into Secured Hedge Agreements by the Hedge
Banks from time to time that the Grantors shall have granted the assignment and security interest
and made the pledge and assignment contemplated by this Agreement.

          (11) Each Grantor will derive substantial direct and indirect benefit from the transactions
contemplated by the Loan Documents.

          (12) Terms defined in the Credit Agreement and not otherwise defined in this Agreement are
used in this Agreement as defined in the Credit Agreement. Further, unless otherwise defined in
this Agreement or in the Credit Agreement, terms defined in Article 8 or 9 of the UCC (as defined
below) and/or in the Federal Book Entry Regulations (as defined below) are used in this Agreement
as such terms are defined in such Article 8 or 9 and/or the Federal Book Entry Regulations. “UCC”
means the Uniform Commercial Code as in effect, from time to time, in the State of New York;
provided that, if perfection or the effect of perfection or non-perfection or the priority of any
security interest in any Collateral is governed by the Uniform Commercial Code as in effect in a
jurisdiction other than the State of New York, “UCC” means the Uniform Commercial Code as in effect
from time to time in such other jurisdiction for purposes of the provisions hereof relating to such
perfection, effect of perfection or non-perfection or priority. The term “Federal Book Entry
Regulations” means (a) the federal regulations contained in Subpart B (“Treasury/Reserve Automated
Debt Entry System (TRADES)”) governing book-entry securities consisting of U.S. Treasury bills,
notes and bonds and Subpart D (“Additional Provisions”) of 31 C.F.R. Part 357, 31 C.F.R. § 357.2, §
357.10 through § 357.15 and § 357.40 through § 357.45 and (b) to the extent substantially identical
to the federal regulations referred to in clause (a) above (as in effect from time to time), the
federal regulations governing other book-entry securities.

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          NOW, THEREFORE, in consideration of the premises and in order to induce the Lenders to make
Loans and issue Letters of Credit under the Credit Agreement and to induce the Hedge Banks to enter
into Secured Hedge Agreements from time to time, each Grantor hereby agrees with the Collateral
Agent for the ratable benefit of the Secured Parties as follows:

          Section 1. Grant of Security. Each Grantor hereby grants to the Collateral Agent, for the ratable benefit of the Secured
Parties, a security interest in, such Grantor’s right, title and interest in and to the following,
in each case, as to each type of property described below, whether now owned or hereafter acquired
by such Grantor, wherever located, and whether now or hereafter existing or arising (collectively,
the “Collateral”), but excluding licenses, permits or authorizations issued by the Federal
Communications Commission (the “FCC”) (“Wireless Licenses”) to the extent that the grant of a
security interest in such Wireless Licenses is prohibited under applicable Federal Law, provided
that the Collateral shall include (x) the right to receive all proceeds derived from the sale,
assignment, transfer or transfer of control of Wireless Licenses, (y) proceeds of Wireless Licenses
and (z) any Wireless Licenses as to which the FCC has consented to the grant of a security interest
under this Agreement:

     (a) all equipment in all of its forms, including, without limitation, all machinery,
tools, motor vehicles, vessels, aircraft, furniture and fixtures, and all parts thereof and
all accessions thereto and all software related thereto, including, without limitation,
software that is embedded in and is part of the equipment (any and all such property being
the “Equipment”);

     (b) all inventory in all of its forms, including, without limitation, (i) all raw
materials, work in process, finished goods and materials used or consumed in the
manufacture, production, preparation or shipping thereof, (ii) goods in which such Grantor
has an interest in mass or a joint or other interest or right of any kind (including,
without limitation, goods in which such Grantor has an interest or right as consignee) and
(iii) goods that are returned to or repossessed or stopped in transit by such Grantor, and
all accessions thereto and products thereof and documents therefor, and all software related
thereto, including, without limitation, software that is embedded in and is part of the
inventory (any and all such property being the “Inventory”);

     (c) all accounts (including, without limitation, health-care-insurance receivables),
chattel paper (including, without limitation, tangible chattel paper and electronic chattel
paper), instruments (including, without limitation, promissory notes), deposit accounts,
letter-of-credit rights, general intangibles (including, without limitation, payment
intangibles) and other obligations of any kind, whether or not arising out of or in
connection with the sale or lease of goods or the rendering of services and whether or not
earned by performance, and all rights now or hereafter existing in and to all supporting
obligations and in and to all security agreements, mortgages, Liens, leases, letters of
credit and other contracts securing or otherwise relating to the foregoing property (any and
all of such accounts, chattel paper, instruments, deposit accounts, letter-of-credit rights,
general intangibles and other obligations, to the extent not referred to in clause (d), (e)
or (f) below, being the “Receivables”, and any and all such supporting
obligations, security agreements, mortgages, Liens, leases, letters of credit and other
contracts being the “Related Contracts”);

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     (d) the following (the “Security Collateral”):

     (i) the Initial Pledged Equity and the certificates, if any, representing the
Initial Pledged Equity, and all dividends, distributions, return of capital, cash,
instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of the Initial Pledged
Equity and all subscription warrants, rights or options issued thereon or with
respect thereto;

     (ii) the Initial Pledged Debt and the instruments, if any, evidencing the
Initial Pledged Debt, and all interest, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect of or in
exchange for any or all of the Initial Pledged Debt;

     (iii) all additional shares of stock and other Equity Interests from time to
time acquired by such Grantor in any manner, (A) other than Equity Interests in the
Excluded Subsidiaries and (B) limited, in the case of Equity Interests in any entity
(other than the Excluded Subsidiaries) that is a “controlled foreign corporation”
under Section 957 of the Internal Revenue Code, to 66% of the capital stock of each
such entity to the extent that any material adverse tax consequences to the
applicable Grantor would otherwise result, (such shares and other Equity Interests,
together with the Initial Pledged Equity, being the “Pledged Equity”), and the
certificates, if any, representing such additional shares or other Equity Interests,
and all dividends, distributions, return of capital, cash, instruments and other
property from time to time received, receivable or otherwise distributed in respect
of or in exchange for any or all of such shares or other Equity Interests and all
subscription warrants, rights or options issued thereon or with respect thereto;

     (iv) all additional indebtedness from time to time owed to such Grantor (such
indebtedness, together with the Initial Pledged Debt, being the “Pledged Debt”) and
the instruments, if any, evidencing such indebtedness, and all interest, cash,
instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such indebtedness;

     (v)
the Securities Accounts, all Pledged Security Entitlements with respect to
all Pledged Financial Assets from time to time credited to the Securities Account,
and all Pledged Financial Assets, and all dividends, distributions, return of
capital, interest, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of
such Pledged Security Entitlements or such Pledged Financial Assets and all
subscription warrants, rights or options issued thereon or with respect thereto;

     (vi) except for property excluded in clause (iii)(A) or (iii)(B) above, all
other investment property (including, without limitation, all (A) securities,
whether certificated or uncertificated, (B) security entitlements, (C) securities

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accounts, (D) commodity contracts and (E) commodity accounts) in which such Grantor
has now, or acquires from time to time hereafter, any right, title or interest in
any manner, and the certificates or instruments, if any, representing or evidencing
such investment property, and all dividends, distributions, return of capital,
interest, distributions, value, cash, instruments and other property from time to
time received, receivable or otherwise distributed in respect of or in exchange for
any or all of such investment property and all subscription warrants, rights or
options issued thereon or with respect thereto;

     (e) each of the agreements listed on Schedule III hereto, the IP Agreements (as
hereinafter defined), and each Hedge Agreement to which such Grantor is now or may hereafter
become a party, in each case as such agreements may be amended, amended and restated,
supplemented or otherwise modified from time to time (collectively, the “Assigned
Agreements”), including, without limitation, (i) all rights of such Grantor to receive
moneys due and to become due under or pursuant to the Assigned Agreements, (ii) all rights
of such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with
respect to the Assigned Agreements, (iii) claims of such Grantor for damages arising out of
or for breach of or default under the Assigned Agreements and (iv) the right of such Grantor
to terminate the Assigned Agreements, to perform thereunder and to compel performance and
otherwise exercise all remedies thereunder (all such Collateral being the “Agreement
Collateral”);

     (f) the following (collectively, the “Account Collateral”):

     (i) the Collateral Account, the L/C Collateral Account and the Other Deposit
Accounts and all funds and financial assets from time to time credited thereto
(including, without limitation, all Cash Equivalents), all interest, dividends,
distributions, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of
such funds and financial assets, and all certificates and instruments, if any, from
time to time representing or evidencing the Collateral Account, the L/C Collateral
Account and the Other Deposit Accounts;

     (ii) all promissory notes, certificates of deposit, deposit accounts, checks
and other instruments from time to time delivered to or otherwise possessed by the
Collateral Agent for or on behalf of such Grantor, including, without limitation,
those delivered or possessed in substitution for or in addition to any or all of the
then existing Account Collateral; and

     (iii) all interest, dividends, distributions, cash, instruments and other
property from time to time received, receivable or otherwise distributed in respect
of or in exchange for any or all of the then existing Account Collateral; and

     (g) the following (collectively, the “Intellectual Property Collateral”):

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     (i) all patents, patent applications, utility models and statutory invention
registrations, all inventions claimed or disclosed therein and all improvements
thereto (“Patents”);

     (ii) all trademarks, service marks, domain names, trade dress, logos, designs,
slogans, trade names, business names, corporate names and other source identifiers,
whether registered or unregistered (provided that no security interest shall be
granted in United States intent-to-use trademark applications to the extent that,
and solely during the period in which, the grant of a security interest therein
would impair the validity or enforceability of such intent-to-use trademark
applications under applicable federal law), together, in each case, with the
goodwill symbolized thereby (“Trademarks”);

     (iii) all copyrights, including, without limitation, copyrights in Computer
Software (as hereinafter defined), internet web sites and the content thereof,
whether registered or unregistered (“Copyrights”);

     (iv) all computer software, programs and databases (including, without
limitation, source code, object code and all related applications and data files),
firmware and documentation and materials relating thereto, together with any and all
maintenance rights, service rights, programming rights, hosting rights, test rights,
improvement rights, renewal rights and indemnification rights and any substitutions,
replacements, improvements, error corrections, updates and new versions of any of
the foregoing (“Computer Software”);

     (v) all confidential and proprietary information, including, without
limitation, know-how, trade secrets, manufacturing and production processes and
techniques, inventions, research and development information, databases and data,
including, without limitation, technical data, financial, marketing and business
data, pricing and cost information, business and marketing plans and customer and
supplier lists and information (collectively, “Trade Secrets”), and all other
intellectual, industrial and intangible property of any type, including, without
limitation, industrial designs and mask works;

     (vi) all registrations and applications for registration for any of the
foregoing, including, without limitation, those registrations and applications for
registration set forth in Schedule V hereto (as such Schedule V may be supplemented
from time to time by supplements to this Agreement, each such supplement being
substantially in the form of Exhibit D hereto (an “IP Security Agreement
Supplement”) executed by such Grantor to the Collateral Agent from time to time),
together with all reissues, divisions, continuations, continuations-in-part,
extensions, renewals and reexaminations thereof;

     (vii) all tangible embodiments of the foregoing, all rights in the foregoing
provided by international treaties or conventions, all rights corresponding thereto
throughout the world and all other rights of any kind whatsoever of such Grantor
accruing thereunder or pertaining thereto;

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     (viii) all agreements, permits, consents, orders and franchises relating to the
license, development, use or disclosure of any of the foregoing to which such
Grantor, now or hereafter, is a party or a beneficiary (“IP Agreements”), including,
without limitation, the agreements set forth in Schedule VI hereto; and

     (ix) any and all claims for damages and injunctive relief for past, present and
future infringement, dilution, misappropriation, violation, misuse or breach with
respect to any of the foregoing, with the right, but not the obligation, to sue for
and collect, or otherwise recover, such damages;

     (h) all commercial tort claims described in Schedule IX hereto (collectively the
“Commercial Tort Claims Collateral”);

     (i) all books and records (including, without limitation, customer lists, credit files,
printouts and other computer output materials and records) of such Grantor pertaining to any
of the Collateral; and

     (j) all proceeds of, collateral for, income, royalties and other payments now or
hereafter due and payable with respect to, and supporting obligations relating to, any and
all of the Collateral (including, without limitation, proceeds, collateral and supporting
obligations that constitute property of the types described in clauses (a) through (i) of
this Section 1 and this clause (j)) and, to the extent not otherwise included, all (A)
payments under insurance (whether or not the Collateral Agent is the loss payee thereof), or
any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise
with respect to any of the foregoing Collateral, (B) tort claims, including, without
limitation, all commercial tort claims and (C) cash;

provided,
however, that notwithstanding anything to the contrary set forth
above, in no event shall the security interest granted under this
Agreement attach to (t) the C Block FCC License held by
Cricket Licensee (Reauction), Inc. for the Basic Trading Area of
Coffeyville, Kansas (BTA# 088) with the FCC Call Sign WPOK578,
(u) any of the assets, properties and rights of the Grantors
that pertain to PCS wireless telecommunications businesses or operations in the State of Oregon, (v) any of the Toledo/Sandusky Assets, (w) the D
Block FCC License held by Cricket Licensee II, Inc. for the Basic Trading Area of Grand Rapids,
Michigan (BTA# 169) with the FCC Call Sign KNLG664, (x) the E Block FCC License held by Cricket
Licensee (Reauction), Inc. for the Basic Trading Area of Fort Wayne, Indiana (BTA# 155) with the
FCC Call Sign WPOJ708, (y) any license, contract, property right or agreement (including any
collateral directly associated with any of the foregoing the grant of a Lien on which is permitted
under Section 7.01 of the Credit Agreement) to which any Grantor is a party or any of such
Grantor’s rights or interests thereunder if and for so long as (but only for so long as) the grant
of such security interest (I) gives any other party to such license, contract, property right or
agreement the right to terminate its obligations thereunder, (II) constitutes or results in the
abandonment, invalidation or unenforceability of any right, title or interest of any Grantor
therein or (III) constitutes or results in a breach or termination pursuant to the terms of, or a
default under, such license, contract, property right or agreement (other than to the extent that
any such terms referred to in any of clauses (I), (II) and (III) are rendered ineffective by the
terms of any of Sections 9-406, 9-407, 9-408 or 9-409 of the UCC or any similar statute or
successor provision or provisions) or (z) any leasehold interest in real property.

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          Section 2. Security for Obligations. This Agreement secures, in the case of each Grantor, the payment of all Obligations of such
Grantor now or hereafter existing under the Loan Documents, whether direct or indirect, absolute or
contingent, and whether for principal, reimbursement obligations, interest, fees, premiums,
penalties, indemnifications, contract causes of action, costs, expenses or otherwise (all such
Obligations being the “Secured Obligations”).

          Section 3. Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each Grantor shall remain liable under
the contracts and agreements included in such Grantor’s Collateral to the extent set forth therein
to perform all of its duties and obligations thereunder to the same extent as if this Agreement had
not been executed, (b) the exercise by the Collateral Agent of any of the rights hereunder shall
not release any Grantor from any of its duties or obligations under the contracts and agreements
included in the Collateral and (c) no Secured Party shall have any obligation or liability under
the contracts and agreements included in the Collateral by reason of this Agreement or any other
Loan Document, nor shall any Secured Party be obligated to perform any of the obligations or duties
of any Grantor thereunder or to take any action to collect or enforce any claim for payment
assigned hereunder.

          Section 4. Delivery and Control of Security Collateral. (a) All certificates or instruments representing or evidencing Security Collateral shall
be delivered to and held by or on behalf of the Collateral Agent pursuant hereto and shall be in
suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of
transfer or assignment in blank, all in form and substance satisfactory to the Collateral Agent.
Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent shall
have the right, at any time in its discretion and without notice to any Grantor, to transfer to or
to register in the name of the Collateral Agent or any of its nominees any or all of the Security
Collateral, subject only to the revocable rights specified in Section 15(a). In addition, upon the
occurrence and during the continuance of an Event of Default, the Collateral Agent shall have the
right at any time to exchange certificates or instruments representing or evidencing Security
Collateral for certificates or instruments of smaller or larger denominations. Upon the occurrence
and during the continuance of an Event of Default, the Collateral Agent shall also have the right
at any time to convert Security Collateral consisting of financial assets credited to the
Securities Account to Security Collateral consisting of financial assets held directly by the
Collateral Agent, and to convert Security Collateral consisting of financial assets held directly
by the Collateral Agent to Security Collateral consisting of financial assets credited to the
Securities Account.

          (b) With respect to any Security Collateral in which any Grantor has any right, title or
interest and that constitutes an uncertificated security, such Grantor will cause the issuer
thereof (or, if the issuer thereof is not a Subsidiary of such Grantor, use commercially reasonable
efforts to cause the issuer thereof) either (i) to register the Collateral Agent as the registered
owner of such security or (ii) to agree in an authenticated record with such Grantor and the
Collateral Agent that such issuer will comply with instructions with respect to such
security originated by the Collateral Agent without further consent of such Grantor, such
authenticated record to be in form and substance satisfactory to the Collateral Agent. With
respect to any Security Collateral in which any Grantor has any right, title or interest and that
is not an uncertificated security, upon the request of the Collateral Agent upon the occurrence and
during the continuance of an Event of Default, such Grantor will notify each such issuer of Pledged
Equity that such Pledged Equity is subject to the security interest granted hereunder.

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          (c) With respect to any Security Collateral in which any Grantor has any right, title or
interest and that constitutes a security entitlement in which the Collateral Agent is not the
entitlement holder, except for any such Security Collateral that is subject to a Lien permitted under any of
clauses (b), (e), (f), (h), (m), (n), (p) or (q) of Section 7.01 of the Credit Agreement, such
Grantor will cause the securities intermediary with respect to such security entitlement either (i)
to identify in its records the Collateral Agent as the entitlement holder of such security
entitlement against such securities intermediary or (ii) to agree in an authenticated record with
such Grantor and the Collateral Agent that such securities intermediary will comply with
entitlement orders (that is, notifications communicated to such securities intermediary directing
transfer or redemption of the financial asset to which such Grantor has a security entitlement)
originated by the Collateral Agent without further consent of such Grantor, such authenticated
record to be in form and substance satisfactory to the Collateral Agent (such agreement being a
“Securities Account Control Agreement”).

          (d) No Grantor will change or add any securities intermediary or commodity intermediary that
maintains any securities account or commodity account in which any of the Collateral is credited or
carried, or change or add any such securities account or commodity account, in each case without
first complying with the above provisions of this Section 4 in order to perfect the security
interest granted hereunder in such Collateral.

          (f) Upon the request of the Collateral Agent upon the occurrence and during the continuance of
an Event of Default, such Grantor will notify each such issuer of Pledged Debt that such Pledged
Debt is subject to the security interest granted hereunder.

          Section 5. Maintaining the Account Collateral. So long as any Loan or any other Obligation of any Loan Party under any Loan Document shall
remain unpaid, any Letter of Credit shall be outstanding, any Secured Hedge Agreement shall be in
effect or any Lender shall have any Commitment:

     (a) From and after the date which is 60 days after the date hereof (as such date may be
extended on the terms permitted by the Credit Agreement and provided that if such Grantor
has used commercially reasonable efforts to obtain the Account Control Agreement described
below, such Grantor shall have an additional 30 days to either (A) obtain such Account
Control Agreement or (B) move the applicable Account Collateral to a Pledge Account Bank
that is party to an Account Control Agreement), each Grantor will maintain all Account
Collateral only with the Collateral Agent or with banks (the “Pledged Account Banks”) that
have agreed, in a record authenticated by the
Grantor, the Collateral Agent and the Pledged Account Banks, to (i) comply with
instructions originated by the Collateral Agent directing the disposition of funds in the
Account Collateral without the further consent of the Grantor and (ii) waive or subordinate
in favor of the Collateral Agent all claims of the Pledged Account Banks (including, without
limitation, claims by way of a security interest, lien or right of setoff or right of
recoupment, except for debits by the Pledged Account Banks for fees, charges or returned
item amounts) to the Account Collateral, which authenticated record shall be in form and
substance satisfactory to the Collateral Agent (the “Account Control

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Agreement”);
and each deposit or securities account subject to an account control
agreement is referred to herein as a “Pledged
Account”) (and, in the case of any such Account Control
Agreement entered into prior to the date hereof, the Pledged Account
Banks shall have, within the timeframe specified above (as extended,
where applicable) acknowledged in an authenticated record in form and
substance satisfactory to the Collateral Agent the continued
effectiveness of such Account Control Agreement with respect to the
Secured Obligations under the Loan Documents); provided,
however, that this Section 5(a) shall not apply to (i) deposit
accounts permitted under clause (c) below and (ii) deposit
accounts subject to Liens permitted under Section 7.01(e), (f),
(h), (m), (n), (p) or (q) of the Credit Agreement to the extent
permitted thereunder (collectively, the deposit accounts referred
to in subclauses (i) and (ii) are referred to herein as
“Other Deposit Accounts”). Schedule VIII sets
forth a list as of the date hereof of all Other Deposit Accounts.

     (b)
Each Grantor will deposit in a Pledged Account or the Collateral Account or
pay to the Collateral Agent for deposit in the Collateral Account, at the end of each
Business Day, all proceeds of Collateral and all other cash of such Grantor, other than (i)
petty cash that in the ordinary course of business is kept at such
Grantor’s offices,
(ii) checks received at such Grantor’s offices that in the ordinary course of business are
not deposited into a deposit account on a daily basis but which are deposited at least once
per week and (iii) cash deposited into an Other Deposit Account
in compliance with clause (i) of the definition of Other Deposit
Account or related to a Lien granted as provided under
clause (ii) of the definition of Other Deposit Account.

     (c) Each Grantor agrees that it will not add any bank that maintains a deposit account
for such Grantor or open any new deposit account with any then existing Pledged Account Bank
unless (except with respect to any new deposit account the individual balance of which does
not exceed $100,000 and does not exceed when aggregated with all other Other Deposit
Accounts, other than those referred to in subclause (a)(ii)
above, $500,000, and except with respect to deposit accounts referred
to in subclause (a)(ii) above) (i) the Collateral Agent shall have received at least
three Business Days’ prior written notice of such additional bank or such new deposit
account and (ii) the Collateral Agent shall have received, in the case of a bank or Pledged
Account Bank that is not the Collateral Agent, an Account Control Agreement authenticated by
such new bank and such Grantor, or a supplement to an existing Account Control Agreement
with such then existing Pledged Account Bank, covering such new deposit account (and, upon
the receipt by the Collateral Agent of such Account Control Agreement or supplement,
Schedule VII hereto shall be automatically amended to include such Other Deposit Account).
Each Grantor agrees that it will not terminate any bank as a Pledged Account Bank or
terminate any Account Collateral, except that the Grantor may
terminate a Pledged Account, and terminate a bank as a Pledged Account Bank with respect to a Pledged Account, if it gives the Collateral Agent at least three Business Days’ prior written notice
of such termination (and, upon such termination, Schedule VII hereto shall be automatically
amended to delete such Pledged Account).

     (d)
Upon any termination by a Grantor of any Pledged Account by such Grantor, or
any Pledged Account Bank with respect thereto, such Grantor will immediately transfer all
funds and property held in such terminated Pledged
Account to another Pledged Account listed in Schedule VII or
otherwise permitted hereunder or to the Collateral
Account so that the Collateral Agent shall have a continuously perfected security interest
in such Account Collateral, funds and property. Each Grantor agrees to terminate any or all
Account Collateral and Account Control Agreements upon request by the Collateral Agent.

     (e) The Collateral Agent shall have sole right in accordance with the Credit Agreement
to direct the disposition of funds with respect to the Collateral Account, the

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L/C
Collateral Account and, after the occurrence and during the continuance of an Event of
Default and the exercise by the Collateral Agent of its right to exclusive control over the
Pledged Accounts, the Pledged Accounts; and it shall be a term and condition of
each of the Collateral Account and the L/C Collateral Account, notwithstanding any term or
condition to the contrary in any other agreement relating to the Collateral Account or the
L/C Collateral Account, as the case may be, that no amount (including, without limitation,
interest on Cash Equivalents credited thereto) will be paid or released to or for the
account of, or withdrawn by or for the account of, the Borrower or any other Person from the
Collateral Account or the L/C Collateral Account; and it shall be a term and condition of
the Pledged Accounts that, after the exercise by the Collateral Agent of its right to
exclusive control over the Pledged Accounts, notwithstanding any term or condition to
the contrary in any other agreement relating to the Pledged Accounts, no amount
(including, without limitation, interest on Cash Equivalents credited thereto) will be paid
or released to or for the account of, or withdrawn by or for the account of, the Borrower or
any other Person from the Pledged Accounts.

     (f) The Collateral Agent may, at any time, after the occurrence and during the
continuance of an Event of Default, and without notice to, or consent from, the Grantor, (i)
transfer, or direct the transfer of, funds from the Account Collateral to satisfy the
Grantor’s obligations under the Loan Documents (to the extent such obligations are due and
payable) if an Event of Default shall have occurred and be continuing and (ii) transfer, or
direct the transfer of, funds from the Pledged Accounts to the Collateral Account, in
each case, as permitted under the Credit Agreement.

          Section 6. Investing of Amounts in the Collateral Account and the L/C Collateral
Account. The Collateral Agent will, subject to the provisions of Sections 5, 7 and 22, from time to
time (a) invest, or direct the applicable Pledged Account Bank to invest, amounts received with
respect to the Collateral Account and the L/C Collateral Account in such Cash Equivalents credited
to (A) the Collateral Account and the L/C Collateral Account, respectively, as the Collateral Agent
may select or (B) in the case of Cash Equivalents consisting of Securities Collateral, a securities
account in which the Collateral Agent is the securities intermediary or a securities account
subject to a Securities Account Control Agreement, and (b) invest interest paid on the Cash
Equivalents referred to in clause (a) above, and reinvest other proceeds of any such Cash
Equivalents that may mature or be sold, in each case in such Cash Equivalents credited in the same
manner. Interest and proceeds that are not invested or reinvested in Cash Equivalents as provided
above shall be deposited and held in the relevant Collateral Account or L/C
Collateral Account. In addition, the Collateral Agent shall have the right at any time to
exchange, or direct the applicable Pledged Account Bank at which the Collateral Account or the L/C
Collateral Account is held to exchange, such Cash Equivalents for similar Cash Equivalents of
smaller or larger determinations, or for other Cash Equivalents, credited to the Collateral Account
or the L/C Collateral Account, as the case may be.

          Section 7. Release of Amounts. So long as no Default shall have occurred and be continuing, the Collateral Agent will pay
and release, or direct the applicable Pledged Account Bank to pay and release, to the Borrower or
at its order or, at the request of the Borrower, to the Administrative Agent to be applied to the
Obligations of the Borrower under the

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Loan Documents, such amount, if any, as is then on deposit in
the Collateral Account or the L/C Collateral Account, as the case may be, in each case to the
extent permitted to be released under the terms of the Credit Agreement.

          Section 8. Maintaining Electronic Chattel Paper, Transferable Records and Letter-of-Credit
Rights and Giving Notice of Commercial Tort Claims. So long as any Loan or any other Obligation of any Loan Party under any Loan Document shall
remain unpaid, any Letter of Credit shall be outstanding, any Secured Hedge Agreement shall be in
effect or any Lender shall have any Commitment:

     (a) Each Grantor will maintain all (i) electronic chattel paper so that the Collateral
Agent has control of the electronic chattel paper in the manner specified in Section 9-105
of the UCC and (ii) all transferable records so that the Collateral Agent has control of the
transferable records in the manner specified in Section 16 of the Uniform Electronic
Transactions Act, as in effect in the jurisdiction governing such transferable record
(“UETA” );

     (b) Each Grantor will use commercially reasonable efforts to maintain all
letter-of-credit rights associated with the letters of credit described in Schedule X, so
that the Collateral Agent has control of such letter-of-credit rights in the manner
specified in Section 9-107 of the UCC; and

     (c) Each Grantor will promptly give notice to the Collateral Agent of any material
commercial tort claim that such Grantor has from time to time and will promptly execute or
otherwise authenticate a supplement to this Agreement, and otherwise take all necessary
action, to subject such commercial tort claim to the first priority security interest
created under this Agreement, subject to Liens permitted under the Credit Agreement.

          Section 9. Representations and Warranties. Each Grantor represents and warrants as follows:

     (a) Such Grantor’s exact legal name, as defined in Section 9-503(a) of the UCC, is
correctly set forth in Schedule I hereto. Such Grantor has only the trade names and
registered trademarks listed on Schedule V hereto. Such Grantor is located (within
the meaning of Section 9-307 of the UCC) and has its chief executive office in the
state or jurisdiction set forth in Schedule I hereto. The information set forth in Schedule
I hereto with respect to such Grantor is true and accurate in all respects. Such Grantor
has not previously changed its name, location, chief executive office, type of organization,
jurisdiction of organization or organizational identification number from those set forth in
Schedule I hereto except as disclosed in Schedule IV hereto.

     (b) All of the Equipment and Inventory of such Grantor are located at locations for
which financing statements in proper form for filing have been delivered to the
Administrative Agent pursuant to Section 4.01(a)(iii)(B) of the Credit Agreement. All
Security Collateral consisting of certificated securities and instruments have been
delivered to the Collateral Agent. None of the Receivables or Agreement Collateral is

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evidenced by a promissory note or other instrument with a face amount in excess of $50,000
that has not been delivered to the Collateral Agent.

     (c) Such Grantor is the legal and beneficial owner of the Collateral of such Grantor
free and clear of any Lien, claim, option or right of others, except for the Lien created
under this Agreement or any Lien permitted under the Credit Agreement. To such Grantor’s
knowledge, no effective financing statement or other instrument similar in effect covering
all or any part of such Collateral or listing such Grantor or any trade name of such Grantor
as debtor is on file in any recording office, except such as may have been filed in favor of
the Collateral Agent relating to the Loan Documents or as otherwise permitted under the
Credit Agreement.

     (d) Such Grantor, either individually or together with one or more other Grantors, has
exclusive possession and control of its Equipment and Inventory other than Inventory stored
at any leased premises or warehouse and except as a third party may have possession or
control of Equipment or Inventory in the ordinary course of such Grantor’s business. In the
case of Equipment and Inventory located on leased premises or in warehouses, no lessor or
warehouseman of any premises or warehouse upon or in which such Equipment or Inventory is
located has any Lien, claim or charge (based on contract, statute or otherwise) on such
Equipment and Inventory, other than any Lien permitted under the Credit Agreement.

     (e) The Initial Pledged Equity pledged by such Grantor hereunder has been duly
authorized and validly issued and is fully paid and non-assessable. With respect to the
Pledged Equity that is an uncertificated security, such Grantor has caused (or, in the case
of any issuer that is not a Subsidiary of such Grantor, has used commercially reasonable
efforts to cause) the issuer thereof either (i) to register the Collateral Agent as the
registered owner of such security or (ii) to agree in an authenticated record with such
Grantor and the Collateral Agent that such issuer will comply with instructions with respect
to such security originated by the Collateral Agent without further consent of such Grantor.
If such Grantor is an issuer of Pledged Equity, such Grantor confirms that it has received
notice of such security interest. The Initial Pledged Debt pledged by such Grantor
hereunder has been duly authorized, authenticated or issued and delivered, is the legal,
valid and binding obligation of the issuers thereof, is evidenced by one or more
promissory notes (which notes have been delivered to the Collateral Agent) and is not
in default.

     (f) As of April 30, 2006, the Initial Pledged Equity pledged by such Grantor
constitutes the percentage of the issued and outstanding Equity Interests of the issuers
thereof indicated on Schedule II hereto. As of April 30, 2006, the Initial Pledged Debt
constitutes all of the outstanding indebtedness owed to such Grantor by the issuers thereof
(other than with respect to indebtedness between the Loan Parties).

     (g) All of the investment property owned by such Grantor as of April 30, 2006 is listed
on Schedule II hereto.

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     (h)
Such Grantor has no deposit accounts, other than the Other Deposit
Accounts and the Account Collateral listed on
Schedule VII hereto, as such Schedule VII may be amended from time to time pursuant to
Section 5(d), and legal, binding and enforceable (subject to the effects of bankruptcy,
insolvency, reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally and general equitable principles (whether considered in a
proceeding in equity or at law)) Account Control Agreements are in effect for each deposit
account that constitutes Account Collateral (other than Account Collateral consisting of
deposit accounts maintained with the Collateral Agent), except to the extent such Account
Control Agreements are not required pursuant to the terms of Section 5(a).

     (i) Such Grantor is not a beneficiary or assignee under any letter of credit, other
than (i) letters of credit with a face amount of less than $100,000 and (ii) the letters of
credit described in Schedule X hereto, as such Schedule X may be amended from time to time.

     (j) (i) Except to the extent not required by the terms of the Loan Documents, all
actions necessary to obtain control of Collateral as provided in Sections 9-104, 9-105,
9-106 and 9-107 of the UCC and Section 16 of UETA and actions necessary to perfect the
Collateral Agent’s security interest with respect to Collateral evidenced by a certificate
of ownership have been duly taken, (ii) all UCC financing statements and United States
Patent and Trademark Office and United States Copyright Office filings required to be filed
in order to perfect the Collateral Agent’s security interest in the Collateral of such
Grantor have been delivered to the Administrative Agent in proper form for filing, and (iii)
this Agreement creates in favor of the Collateral Agent for the benefit of the Secured
Parties a valid and, together with such filings described in clause (ii) to the extent made
and such actions described in clause (i) to the extent taken, perfected first priority
(except to the extent of any Lien permitted under Section 7.01 of the Credit Agreement that
is prior to the Lien created under this Agreement) security interest in the Collateral of
such Grantor, securing the payment of the Secured Obligations.

     (k) No authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body is required for (i) the grant by such Grantor
of the security interest granted hereunder or for the execution, delivery or performance of
this Agreement by such Grantor, (ii) the perfection or maintenance of the
security interest created hereunder (including the first priority nature of such
security interest), except for the filing of financing statements referred to above and all
required continuation statements, the filing of financing statements
or similar documents with Governmental Authorities with respect to
motor vehicles with an aggregate value not in excess of $150,000, the recordation of the grant of security in the
Intellectual Property Collateral that is the subject of United States federal registrations
or applications with the U.S. Patent and Trademark Office and the U.S. Copyright Office, as
applicable, and the actions described in Section 4 with respect to Security Collateral, or
(iii) the exercise by the Collateral Agent of its voting rights provided for in this
Agreement, except as may be required (x) in connection with the disposition of any portion
of the Security Collateral by laws affecting the offering and sale of securities generally,
(y) by FCC rules and regulations in the case of any disposition of Equity Interests in a
Subsidiary that holds FCC Licenses and (z) in connection with any exercise of voting rights
with respect to Equity Interests of entities that are not Subsidiaries.

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     (l) As to itself and its Intellectual Property Collateral:

     (i) The operation of such Grantor’s business as currently conducted or as
contemplated to be conducted and the use of the Intellectual Property Collateral in
connection therewith do not conflict with, infringe, misappropriate, dilute, misuse
or otherwise violate the intellectual property rights of any third party, except as
could not reasonably be expected to have a Material Adverse Effect.

     (ii) Such Grantor is the owner of all right, title and interest in and to the
Intellectual Property Collateral set forth on Schedule V. Such Grantor is entitled
to use all Intellectual Property Collateral as such Intellectual Property Collateral
is in use as of the date of this Agreement, except as could not reasonably be
expected to have a Material Adverse Effect.

     (iii)
The Intellectual Property Collateral set forth on Schedule V hereto
includes all of the patents, patent applications, trademark registrations and
applications and copyright registrations and applications which
are material to such Grantor’s business and owned by such Grantor.

     (iv) All registrations for the Intellectual Property Collateral set forth on
Schedule V are subsisting and have not been adjudged invalid or unenforceable in
whole or any material part, and to such Grantor’s knowledge, are valid and
enforceable, except as could not reasonably be expected to have a Material Adverse
Effect. Such Grantor does not have knowledge of any uses by such Grantor of any
item of Intellectual Property Collateral that could be expected to lead to such item
becoming invalid or unenforceable, except as could not reasonably be expected to
have a Material Adverse Effect.

     (v) Except as could not reasonably be expected to have a Material Adverse
Effect, such Grantor has made or performed all filings, recordings and other acts
and has paid all required fees and taxes to maintain and protect its interest in the
Intellectual Property Collateral set forth on Schedule V in full force and effect
throughout the United States and to protect and maintain its interest therein
including, without limitation, recordations of any of its interests in the Patents
and Trademarks with the U.S. Patent and Trademark Office, and
recordation of any of its interests in the Copyrights with the U.S. Copyright
Office and in corresponding national and international copyright offices. Such
Grantor has used proper statutory notice in connection with its use of each material
patent, trademark and copyright in the Intellectual Property Collateral, except as
could not reasonably be expected to have a Material Adverse Effect.

     (vi) As of the date hereof and except as could not reasonably be expected to
have a Material Adverse Effect, no claim, action, suit, investigation, litigation or
proceeding has been asserted or is pending or to such Grantor’s knowledge,
threatened against such Grantor (i) based upon or challenging or seeking to deny or
restrict the Grantor’s rights in or use of any of the Intellectual Property
Collateral, (ii) alleging that the Grantor’s rights in or use of the Intellectual
Property Collateral or that any services provided by, processes used

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by, or products
manufactured or sold by, such Grantor infringe, misappropriate, dilute, misuse or
otherwise violate any patent, trademark, copyright or any other proprietary right of
any third party, or (iii) alleging that the Intellectual Property Collateral is
being licensed or sublicensed in violation or contravention of the terms of any
license or other agreement. To such Grantor’s knowledge, no Person is engaging in
any activity that infringes, misappropriates, dilutes, misuses or otherwise violates
in any material respect the Intellectual Property Collateral or the Grantor’s rights
in or use thereof, except as could not reasonably be expected to have a Material
Adverse Effect. Such Grantor has not granted any license, release, covenant not to
sue, non-assertion assurance, or other right to any Person with respect to any part
of the Intellectual Property Collateral, except as could not reasonably be expected
to have a Material Adverse Effect. The consummation of the transactions
contemplated by the Transaction Documents will not result in the termination or
impairment of any of the Intellectual Property Collateral in any material respect.

     (vii) With respect to each IP Agreement and in each case, except as could not
reasonably be expected to have a Material Adverse Effect: (A) such IP Agreement is,
to such Grantor’s knowledge, valid and binding and in full force and effect; (B)
such IP Agreement will not cease to be valid and binding and in full force and
effect on terms identical to those currently in effect as a result of the rights and
interest granted herein, nor will the grant of such rights and interest constitute a
breach or default under such IP Agreement or otherwise give any party thereto a
right to terminate such IP Agreement; (C) such Grantor has not received any written
notice of termination or cancellation under such IP Agreement; (D) such Grantor has
not received any written notice of a breach or default under such IP Agreement,
which breach or default has not been cured; (E) such Grantor has not granted to any
other third party any rights, adverse or otherwise, under such IP Agreement; and (F)
neither such Grantor nor any other party to such IP Agreement is in breach or
default thereof in any material respect, and no event has occurred that, with notice
or lapse of time or both, would constitute such a breach or default or permit
termination, modification or acceleration under such IP Agreement.

     (viii) To such Grantor’s knowledge, (A) none of the Trade Secrets of such
Grantor has been used, divulged, disclosed or appropriated to the detriment of such
Grantor for the benefit of any other Person other than such Grantor; (B) no
employee, independent contractor or agent of such Grantor has misappropriated any
trade secrets of any other Person in the course of the performance of his or her
duties as an employee, independent contractor or agent of such Grantor; and (C) no
employee, independent contractor or agent of such Grantor is in default or breach of
any material term of any employment agreement, non-disclosure agreement, assignment
of inventions agreement or similar agreement or contract relating in any way to the
protection, ownership, development, use or transfer of such Grantor’s Intellectual
Property Collateral, except, in each case, as could not reasonably be expected to
have a Material Adverse Effect.

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     (ix) No Grantor or Intellectual Property Collateral is subject to any
outstanding consent, settlement, decree, order, injunction, judgment or ruling
restricting the use of any Intellectual Property Collateral or that would impair the
validity or enforceability of such Intellectual Property Collateral except as could
not reasonably be expected to have a Material Adverse Effect.

     (m) The Grantor has no material commercial tort claims (as defined in Section 9-102(13)
of the UCC) other than those listed in Schedule IX hereto (as amended from time to time.

          Section 10. Further Assurances. (a) Each Grantor agrees that from time to time, at the expense of such Grantor, such
Grantor will promptly execute and deliver, or otherwise authenticate, all further instruments and
documents, and take all further action that may be necessary or desirable, or that the Collateral
Agent may request, in order to perfect and protect any pledge or security interest granted or
purported to be granted by such Grantor hereunder or to enable the Collateral Agent to exercise and
enforce its rights and remedies hereunder with respect to any Collateral of such Grantor. Without
limiting the generality of the foregoing, each Grantor will promptly with respect to Collateral of
such Grantor: (i) if any such Collateral shall be evidenced by a promissory note or other
instrument or chattel paper, deliver and pledge to the Collateral Agent hereunder such note or
instrument or chattel paper with a face amount exceeding $50,000 duly indorsed and accompanied by
duly executed instruments of transfer or assignment, all in form and substance satisfactory to the
Collateral Agent; (ii) execute or authenticate and file such financing or continuation statements,
or amendments thereto, and such other instruments or notices, as may be necessary or desirable, or
as the Collateral Agent may request, in order to perfect and preserve the security interest granted
or purported to be granted by such Grantor hereunder; (iii) deliver and pledge to the Collateral
Agent for benefit of the Secured Parties certificates representing Security Collateral that
constitutes certificated securities, accompanied by undated stock or bond powers executed in blank;
(iv) take all action necessary to ensure that the Collateral Agent has control of Collateral
consisting of deposit accounts, electronic chattel paper, investment property, letter-of-credit
rights and transferable records as provided in Sections 9-104, 9-105, 9-106 and 9-107 of the UCC
and in Section 16 of UETA, except as not
required by the terms of the Loan Documents; (v) take all action to ensure that the Collateral
Agent’s security interest is noted on any certificate of ownership related to any Collateral with a
value in excess of $100,000 that is evidenced by a certificate of ownership; (vi) use commercially
reasonable efforts to cause the Collateral Agent to be the beneficiary under all letters of credit
set forth on Schedule X, with the right to make all draws under such letters of credit, and with
all rights of a transferee under Section 5-114(e) of the UCC; and (vii) deliver to the Collateral
Agent evidence that all other action that the Collateral Agent may deem reasonably necessary or
desirable in order to perfect and protect the security interest created by such Grantor under this
Agreement has been taken.

          (b) Each Grantor hereby authorizes the Collateral Agent to file one or more financing or
continuation statements, and amendments thereto, including, without limitation, one or more
financing statements indicating that such financing statements cover all assets or all personal
property (or words of similar effect) of such Grantor, in each case without the signature of such
Grantor, and regardless of whether any particular asset described in such financing statements
falls within the scope of the UCC or the granting clause of this Agreement. A

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photocopy or other
reproduction of this Agreement or any financing statement covering the Collateral or any part
thereof shall be sufficient as a financing statement where permitted by law. Each Grantor ratifies
its authorization for the Collateral Agent to have filed such financing statements, continuation
statements or amendments filed prior to the date hereof.

          (c) Each Grantor will furnish to the Collateral Agent from time to time statements and
schedules further identifying and describing the Collateral of such Grantor and such other reports
in connection with such Collateral as the Collateral Agent may reasonably request, all in
reasonable detail.

          Section 11. As to Equipment and Inventory. Each Grantor will keep the Equipment and Inventory of such Grantor (other than Inventory
sold in the ordinary course of business) at the places therefor specified in Section 9(b) or, upon
30 days’ prior written notice to the Collateral Agent, at such other places designated by the
Grantor in such notice.

          Section 12. Insurance. (a) Each insurance policy required to be maintained in accordance with Section 6.07 of the
Credit Agreement shall (i) name such Grantor and the Collateral Agent as insured parties thereunder
(without any representation or warranty by or obligation upon the Collateral Agent) as their
interests may appear, (ii) contain the agreement by the insurer that any loss thereunder shall be
payable to the Collateral Agent (jointly with such Grantor) notwithstanding any action, inaction or
breach of representation or warranty by such Grantor, (iii) provide that there shall be no recourse
against the Collateral Agent for payment of premiums or other amounts with respect thereto and (iv)
provide that at least 10 days’ prior written notice of cancellation or of lapse shall be given to
the Collateral Agent by the insurer. Each Grantor will, if so requested by the Collateral Agent,
deliver to the Collateral Agent original or duplicate policies of such insurance and, as often as
the Collateral Agent may reasonably request, a report of a reputable insurance broker with respect
to such insurance. Further, each Grantor will, at the
request of the Collateral Agent, duly execute and deliver instruments of assignment of such
insurance policies to comply with the requirements of this Section 12 and use commercially
reasonable efforts to cause the insurers to acknowledge notice of such assignment.

          (b) Reimbursement under any liability insurance maintained by any Grantor pursuant to this
Section 12 may be paid directly to the Person who shall have incurred liability covered by such
insurance. In case of any loss involving damage to Equipment or Inventory, the applicable Grantor
will make or cause to be made the necessary repairs to or replacements of such Equipment or
Inventory, and any proceeds of insurance properly received by or released to such Grantor shall be
used by such Grantor, except as otherwise required hereunder or by the Credit Agreement, to pay or
as reimbursement for the costs of such repairs or replacements, except in each case where the
failure to do so could not reasonably be expected to have a Material Adverse Effect and provided
that nothing in this Section shall require the making of any repair or replacement of any Equipment
or Inventory where such repair or replacement would not be commercially reasonable.

          (c) So long as no Default under Section 8.01(a) or (f) of the Credit Agreement or Event of
Default shall have occurred and be continuing, all insurance payments received by the Collateral
Agent in connection with any loss, damage or destruction of any Inventory or

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Equipment will be
released by the Collateral Agent to the applicable Grantor for application in accordance with
Section 12(b). To the extent that (i) the amount of any such insurance payments exceeds the cost
of any such repair, replacement or restoration, or (ii) such insurance payments are not otherwise
required by the applicable Grantor to complete any such repair, replacement or restoration required
hereunder, the amount of such excess shall be applied in the manner set forth in the Credit
Agreement. Upon the occurrence and during the continuance of any Event of Default, all insurance
payments in respect of such Equipment or Inventory shall be paid to the Collateral Agent and shall,
in the Collateral Agent’s sole discretion, (i) be released to the applicable Grantor to be applied
as set forth in the first sentence of this subsection (c) or (ii) be held as additional Collateral
hereunder or applied as specified in Section 22(b).

          Section 13. Post-Closing Changes; Bailees; Collections on Assigned Agreements, Receivables
and Related Contracts. (a) No Grantor will change its name, type of organization, jurisdiction of organization,
organizational identification number or location from those set forth in Section 9(a) of this
Agreement without first giving at least 30 days’ prior written notice to the Collateral Agent and
taking all action reasonably required by the Collateral Agent for the purpose of perfecting or
protecting the security interest granted by this Agreement. No Grantor will change the location of
the Equipment and Inventory from the locations therefor specified in Section 9(b) without first
giving the Collateral Agent 30 days’ prior written notice of such change. No Grantor will become
bound by a security agreement authenticated by another Person (determined as provided in Section
9-203(d) of the UCC) without giving the Collateral Agent 30 days’ prior written notice thereof and
taking all action required by the Collateral Agent to ensure that the perfection and first priority
nature of the Collateral Agent’s security interest in the Collateral will be maintained, except as
permitted by the terms of the Loan Documents and subject to Liens permitted under the Credit
Agreement. Each Grantor will hold and preserve its records relating to the Collateral, including,
without limitation, the Assigned Agreements and Related Contracts,
and will permit representatives of the Collateral Agent at any time during normal business
hours to inspect and make abstracts from such records and other documents. If the Grantor does not
have an organizational identification number and later obtains one, it will forthwith notify the
Collateral Agent of such organizational identification number.

          (b) If any Collateral of any Grantor is at any time in the possession or control of a
warehouseman, bailee or agent, and if the Collateral Agent so requests such Grantor will (i) notify
such warehouseman, bailee or agent of the security interest created hereunder, (ii) instruct such
warehouseman, bailee or agent to hold all such Collateral solely for the Collateral Agent’s account
subject only to the Collateral Agent’s instructions (which shall permit such Collateral to be
removed by such Grantor in the ordinary course of business until the Collateral Agent notifies such
warehouseman, bailee or agent that an Event of Default has occurred and is continuing), (iii) use
commercially reasonable efforts, to cause such warehouseman, bailee or agent to authenticate a
record acknowledging that it holds possession of such Collateral for the Collateral Agent’s benefit
and shall act solely on the instructions of the Collateral Agent as specified in clause (ii) above
without the further consent of the Grantor or any other Person, and (iv) if so obtained, make such
authenticated record available to the Collateral Agent.

          (c) Except as otherwise provided in this subsection (c), each Grantor will continue to
collect, in the ordinary course of business and at its own expense, amounts due or to become due
such Grantor under the Assigned Agreements, Receivables and Related Contracts.

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In connection with such collections, such Grantor may take (and, at the Collateral
Agent’s direction, will take) such action as such Grantor or the Collateral Agent may reasonably
deem necessary or advisable to enforce collection of the Assigned Agreements, Receivables and
Related Contracts; provided, however, that the Collateral Agent shall have the right at any time,
upon the occurrence and during the continuance of an Event of Default and upon written notice to
such Grantor of its intention to do so, to notify the obligors (other than customers of any
Grantor) under any Assigned Agreements, Receivables and Related Contracts of the assignment of such
Assigned Agreements, Receivables and Related Contracts to the Collateral Agent and to direct such
obligors (other than customers of any Grantor) to make payment of all amounts due or to become due
to such Grantor thereunder directly to the Collateral Agent and, upon such notification and at the
expense of such Grantor, to enforce collection of any such Assigned Agreements, Receivables and
Related Contracts, to adjust, settle or compromise the amount or payment thereof, in the same
manner and to the same extent as such Grantor might have done, and to otherwise exercise all rights
with respect to such Assigned Agreements, Receivables and Related Contracts, including, without
limitation, those set forth set forth in Section 9-607 of the UCC. After receipt by any Grantor of
the notice from the Collateral Agent referred to in the proviso to the preceding sentence, (i) all
amounts and proceeds (including, without limitation, instruments) received by such Grantor in
respect of the Assigned Agreements, Receivables and Related Contracts of such Grantor shall be
received in trust for the benefit of the Collateral Agent hereunder, shall be segregated from other
funds of such Grantor and shall be forthwith paid over to the Collateral Agent in the same form as
so received (with any necessary indorsement) to be deposited in the Collateral Account and either
(A) released to such Grantor on the terms set forth in Section 7 so long as no Event of Default
shall have occurred and be continuing or (B) if any Event of Default shall have occurred and be
continuing and the Collateral Agent so elects as provided in Section 22(b), applied as provided in
Section 22(b) and (ii) such Grantor will not adjust, settle or compromise the amount or payment of
any Receivable or amount due on any Assigned Agreement or Related Contract, release wholly or
partly any obligor thereof, or allow any credit or discount thereon, except in the ordinary course
of business or in connection with any settlement with the obligor thereof. No Grantor will consent
to the subordination of its right to payment under any of the Assigned Agreements, Receivables and
Related Contracts to any other indebtedness or obligations of the obligor thereof.

          Section 14. As to Intellectual Property Collateral. (a) With respect to each item of its Intellectual Property Collateral, each Grantor agrees
to take, at its expense, all necessary steps, including, without limitation, in the U.S. Patent and
Trademark Office, the U.S. Copyright Office and any other governmental authority, to (i) maintain
the validity and enforceability of all material Intellectual Property Collateral and maintain such
Intellectual Property Collateral in full force and effect, and (ii) to the extent commercially
reasonable, pursue the registration and maintenance of each material patent, trademark, or
copyright registration or application, now or hereafter included in the Intellectual Property
Collateral of such Grantor, including, without limitation, the payment of required fees and taxes,
the filing of responses to office actions issued by the U.S. Patent and Trademark Office, the U.S.
Copyright Office or other governmental authorities, the filing of applications for renewal or
extension, the filing of affidavits under Sections 8 and 15 of the U.S. Trademark Act, the filing
of divisional, continuation, continuation-in-part, reissue and renewal applications or extensions,
the payment of maintenance fees and the participation in interference, reexamination, opposition, cancellation, infringement and misappropriation proceedings. No
Grantor shall, without the

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written consent of the Collateral Agent, discontinue use of or otherwise
abandon any Intellectual Property Collateral, or abandon any right to file an application for
patent, trademark, or copyright, unless such Grantor shall have previously determined that such use
or the pursuit or maintenance of such Intellectual Property Collateral is no longer desirable in
the conduct of such Grantor’s business and that the loss thereof would not be reasonably likely to
have a Material Adverse Effect.

          (b) Each Grantor agrees promptly to notify the Collateral Agent if such Grantor has knowledge
(i) that any material item of the Intellectual Property Collateral may have become abandoned,
placed in the public domain, invalid or unenforceable, or of any adverse determination or
development regarding such Grantor’s ownership of any of the Intellectual Property Collateral or
its right to register the same or to keep and maintain and enforce the same, or (ii) of any adverse
determination or the institution of any proceeding (including, without limitation, the institution
of any proceeding in the U.S. Patent and Trademark Office or any court) regarding any item of the
Intellectual Property Collateral.

          (c) In the event that any Grantor has knowledge that any item of the Intellectual Property
Collateral is being infringed or misappropriated by a third party, such Grantor shall (i) take such
actions, at its expense, as such Grantor deems reasonable and appropriate under the circumstances
to protect or enforce such Intellectual Property Collateral and (ii) if such Intellectual Property
Collateral is of material economic value and such infringement or misappropriation could reasonably
be expected to have a Material Adverse Effect, promptly notify the Collateral Agent after such
Grantor learns thereof and take such actions, at its expense, as such Grantor deems reasonable and
appropriate under the circumstances, which may include, without limitation, suing for infringement
or misappropriation and for an injunction against such infringement or misappropriation.

          (d) Except as could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (i) each Grantor shall use proper statutory notice in connection with its
use of each material item of its Intellectual Property Collateral and (ii) no Grantor shall do or
permit any act or knowingly omit to do any act whereby any of its material Intellectual Property
Collateral may lapse or become invalid or unenforceable or placed in the public domain.

          (e) Each Grantor shall take all steps which it reasonably deems appropriate under the
circumstances to preserve and protect each item of its Intellectual Property Collateral.

          (f) With respect to its Intellectual Property Collateral, each Grantor agrees to execute or
otherwise authenticate an agreement, in substantially the form set forth in Exhibit C hereto or
otherwise in form and substance satisfactory to the Collateral Agent (an “Intellectual Property
Security Agreement”), for recording the security interest granted hereunder to the Collateral Agent
in such Intellectual Property Collateral with the U.S. Patent and Trademark Office, the U.S.
Copyright Office and any other governmental authorities necessary to perfect the security interest
hereunder in such Intellectual Property Collateral.

          (g) Each Grantor agrees that should it obtain an ownership interest in any material property
of the type set forth in Section 1(g) that is not on the date hereof a part of the

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Intellectual Property Collateral (“After-Acquired Intellectual Property”) (i) the provisions of this Agreement
shall automatically apply thereto, and (ii) any such After-Acquired Intellectual Property and, in
the case of trademarks, the goodwill symbolized thereby, shall automatically become part of the
Intellectual Property Collateral subject to the terms and conditions of this Agreement with respect
thereto. Within 30 days after the end of each fiscal year of Holdings, each Grantor shall give
written notice to the Collateral Agent identifying the After-Acquired Intellectual Property
acquired during such fiscal year (other than After-Acquired Intellectual Property acquired from
third parties in the ordinary course of business that is not material to the business of the Loan
Parties), and such Grantor shall execute and deliver to the Collateral Agent with such written
notice, or otherwise authenticate, an agreement substantially in the form of Exhibit D hereto or
otherwise in form and substance satisfactory to the Collateral Agent (an “IP Security Agreement
Supplement”) covering such After-Acquired Intellectual Property which IP Security Agreement
Supplement shall be recorded, if reasonably deemed necessary by the Collateral Agent, with the U.S.
Patent and Trademark Office, the U.S. Copyright Office and any other governmental authorities
necessary to perfect the security interest hereunder in such After-Acquired Intellectual Property.

          Section 15. Voting Rights; Dividends; Etc. (a) So long as no Event of Default shall have occurred and be continuing:

     (i) Each Grantor shall be entitled to exercise any and all voting and other consensual
rights pertaining to the Security Collateral of such Grantor or any part thereof for any
purpose; provided however, that such Grantor will not exercise or refrain from exercising
any such right if such action would have a material adverse effect on the value of the
Security Collateral or any material part thereof.

     (ii) Each Grantor shall be entitled to receive and retain any and all dividends,
interest and other distributions paid in respect of the Security Collateral of such Grantor
if and to the extent that the payment thereof is not otherwise prohibited by the terms of
the Loan Documents; provided, however, that, except with respect to transactions between and
among Loan Parties but subject to the requirements of the Loan Documents with respect to
proceeds of Dispositions, any and all

     (A) dividends, interest and other distributions paid or payable other than in
cash in respect of, and instruments and other property received, receivable or
otherwise distributed in respect of, or in exchange for, any Security Collateral,

     (B) dividends and other distributions paid or payable in cash in respect of any
Security Collateral in connection with a partial or total liquidation or dissolution
or in connection with a reduction of capital, capital surplus or paid-in-surplus and

     (C) cash paid, payable or otherwise distributed in respect of principal of, or
in redemption of, or in exchange for, any Security Collateral

shall be, and shall be forthwith delivered to the Collateral Agent to hold as, Security
Collateral and shall, if received by such Grantor, be received in trust for the benefit of
the

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Collateral Agent, be segregated from the other property or funds of such Grantor and be
forthwith delivered to the Collateral Agent as Security Collateral in the same form as so
received (with any necessary indorsement).

     (iii) The Collateral Agent will execute and deliver (or cause to be executed and
delivered) to each Grantor all such proxies and other instruments as such Grantor may
reasonably request for the purpose of enabling such Grantor to exercise the voting and other
rights that it is entitled to exercise pursuant to paragraph (i) above and to receive the
dividends or interest payments that it is authorized to receive and retain pursuant to
paragraph (ii) above.

          (b) Upon the occurrence and during the continuance of an Event of Default:

     (i) Except with respect to transactions between and among Loan Parties that are not by
the terms of the Credit Agreement prohibited from being consummated after the occurrence of
an Event of Default, all rights of each Grantor (x) to exercise or refrain from exercising
the voting and other consensual rights that it would otherwise be entitled to exercise
pursuant to Section 15(a)(i) shall, upon notice to such Grantor by the Collateral Agent,
cease and (y) to receive the dividends, interest and other distributions that it would
otherwise be authorized to receive and retain pursuant to Section 15(a)(ii) shall
automatically cease, and all such rights shall thereupon become vested in the Collateral
Agent, which shall thereupon have the sole right to exercise or refrain from exercising such
voting and other consensual rights and to receive and hold as Security Collateral such
dividends, interest and other distributions.

     (ii) All dividends, interest and other distributions that are received by any Grantor
contrary to the provisions of paragraph (i) of this Section 15(b) shall be received in trust
for the benefit of the Collateral Agent, shall be segregated from other funds of such
Grantor and shall be forthwith paid over to the Collateral Agent as Security Collateral in
the same form as so received (with any necessary indorsement).

     (iii) The Collateral Agent shall be authorized to send to each Securities Intermediary
or Commodity Intermediary as defined in and under any Security Control Agreement a Notice of
Exclusive Control as defined in and under such Security Control Agreement.

          Section 16. As to Letter-of-Credit Rights. Each Grantor, by granting a security interest in its Receivables consisting of
letter-of-credit rights to the Collateral Agent, intends to (and hereby does) assign to the
Collateral Agent its rights (including its contingent rights) to the proceeds of all Related
Contracts consisting of letters of credit of which it is or hereafter becomes a beneficiary or
assignee. Each Grantor will promptly use its commercially reasonable efforts to cause the issuer
of each letter of credit with a face amount in excess of $100,000 and each nominated person (if
any) with respect thereto to consent to such assignment of the proceeds thereof in substantially
the form of the Consent to Assignment of Letter of Credit Rights attached hereto as Exhibit E
or otherwise in form and substance satisfactory to the Collateral Agent and deliver written
evidence of such consent to the Collateral Agent.

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          Section 17. As to the Denali Spectrum Manager Security Interests. Notwithstanding any other provision of this Agreement or any of the other Loan Documents, the
Collateral Agent, for itself and for each Secured Party, hereby acknowledges and agrees for the
benefit of Denali Spectrum Manager, LLC (“DSM”), that: (i) the Borrower and DSM are parties to that
certain Formation Agreement, dated as of May 10, 2006 (the “Formation Agreement”); (ii) in
recognition of the benefits that the transactions contemplated by the Formation Agreement will
provide to the Borrower, DSM shall be granted a first priority security interest in certain assets
of Denali Spectrum License, LLC (“Denali License”) and its Subsidiaries to secure the obligations
of Denali License and its Subsidiaries to purchase DSM’s membership interests in Denali Spectrum,
LLC; and (iii) if DSM and the Borrower enter into the definitive agreements contemplated by the
Formation Agreement (including the Interest Purchase Agreement and the DSM Security Agreement, each
as defined in the Formation Agreement) (collectively, the “Denali Agreements”), then the security
interests received by the Borrower from Denali License or any Subsidiary thereof (and any right or
interest that the Collateral Agent and/or the Secured Parties is granted or in the future may be
granted hereunder or otherwise with respect to such security interests of the Borrower) in (A) all
assets of Denali License, including all membership interests owned by Denali License in its
Subsidiaries (but excluding Denali License’s membership interests in each of its Subsidiaries that
does not hold FCC Licenses), (B) all assets of Denali License’s Subsidiaries, if any, now owned or
hereafter acquired, and (C) all proceeds and products of such assets, shall, as contemplated by
Section 8(g) of the Formation Agreement, be junior and subordinate in right to the security
interests in such assets and membership interests and proceeds and products thereof, to be granted
to DSM in connection with the execution of the Denali Agreements, pursuant to an intercreditor and
subordination agreement to be entered into by DSM and the Borrower, up to an aggregate amount of
$200,000,000 (for the avoidance of doubt, each reference to an agreement in this sentence shall be
to such agreement as the same may be amended, amended and restated, supplemented or otherwise
modified from time to time in accordance with the terms thereof).

          Section 18. Transfers and Other Liens; Additional Shares. (a) Each Grantor agrees that it will not (i) sell, assign or otherwise dispose of, or
grant any option with respect to, any of the Collateral, other than sales, assignments and other
dispositions of Collateral, and options relating to Collateral, permitted under the terms of the
Credit Agreement, or (ii) create or suffer to exist any Lien upon or with respect to any of the
Collateral of such Grantor except for the pledge, assignment and security interest created under
this Agreement and Liens permitted to attach to such Collateral under Section 7.01 of the Credit
Agreement.

          (b) Each Grantor agrees that it will (i) cause each Subsidiary that is an issuer of the
Pledged Equity pledged by such Grantor not to issue any Equity Interests or other securities in
addition to or in substitution for the Pledged Equity issued by such issuer, except to such
Grantor, and (ii) pledge hereunder, immediately upon its acquisition (directly or indirectly)
thereof, any and all additional Equity Interests or other securities, subject to the
limitation set forth in Section 1(d)(iii).

          Section 19. Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints the Collateral Agent such Grantor’s
attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of
such Grantor or otherwise, from time to time in the Collateral Agent’s discretion, upon the
occurrence and during the

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continuance of an Event of Default, to take any action and to execute any
instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes of
this Agreement, including, without limitation:

     (a) to obtain and adjust insurance required to be paid to the Collateral Agent,

     (b) to ask for, demand, collect, sue for, recover, compromise, receive and give
acquittance and receipts for moneys due and to become due under or in respect of any of the
Collateral,

     (c) to receive, indorse and collect any drafts or other instruments, documents and
chattel paper, in connection with clause (a) or (b) above, and

     (d) to file any claims or take any action or institute any proceedings that the
Collateral Agent may deem necessary or desirable for the collection of any of the Collateral
or otherwise to enforce compliance with the terms and conditions of any Assigned Agreement
or the rights of the Collateral Agent with respect to any of the Collateral.

          Section 20. Collateral Agent May Perform. If any Grantor fails to perform any agreement contained herein, the Collateral Agent may,
as the Collateral Agent deems necessary to protect the security interest granted hereunder in the
Collateral or to protect the value thereof, but without any obligation to do so and without notice,
itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent
incurred in connection therewith shall be payable by such Grantor under the Loan Documents.

          Section 21. The Collateral Agent’s Duties. (a) The powers conferred on the Collateral Agent hereunder are solely to protect the
Secured Parties’ interest in the Collateral and shall not impose any duty upon it to exercise any
such powers. Except for the safe custody of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any
Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges,
maturities, tenders or other matters relative to any Collateral, whether or not any Secured Party
has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to
preserve rights against any parties or any other rights pertaining to any Collateral. The
Collateral Agent shall be deemed to have exercised reasonable care in the
custody and preservation of any Collateral in its possession if such Collateral is accorded
treatment substantially equal to that which it accords its own property.

          (b) Anything contained herein to the contrary notwithstanding, the Collateral Agent may from
time to time, when the Collateral Agent deems it to be necessary, appoint one or more subagents
(each a “Subagent”) for the Collateral Agent hereunder with respect to all or any part of the
Collateral (and shall notify the Borrower of such appointment; provided, that the failure to so
notify the Borrower shall not affect the provisions of this Section 21(b)). In the event that the
Collateral Agent so appoints any Subagent with respect to any Collateral, (i) the assignment and
pledge of such Collateral and the security interest granted in such Collateral by each Grantor
hereunder shall be deemed for purposes of this Amended and Restated Security Agreement to have been
made to such Subagent, in addition to the Collateral Agent, for the

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ratable benefit of the Secured
Parties, as security for the Secured Obligations of such Grantor, (ii) such Subagent shall
automatically be vested, in addition to the Collateral Agent, with all rights, powers, privileges,
interests, obligations and remedies of the Collateral Agent hereunder with respect to such
Collateral, and (iii) the term “Collateral Agent,” when used herein in relation to any rights,
powers, privileges, interests, obligations and remedies of the Collateral Agent with respect to
such Collateral, shall include such Subagent; provided, however, that no such Subagent shall be
authorized to take any action with respect to any such Collateral unless and except to the extent
expressly authorized in writing by the Collateral Agent.

          Section 22. Remedies. If any Event of Default shall have occurred and be continuing and the Administrative Agent
shall have so instructed the Collateral Agent:

     (a) The Collateral Agent may exercise in respect of the Collateral, in addition to
other rights and remedies provided for herein or otherwise available to it, all the rights
and remedies of a secured party upon default under the UCC (whether or not the UCC applies
to the affected Collateral) and also may: (i) require each Grantor to, and each Grantor
hereby agrees that it will at its expense and upon request of the Collateral Agent
forthwith, assemble all or part of the Collateral as directed by the Collateral Agent and
make it available to the Collateral Agent at a place and time to be designated by the
Collateral Agent that is reasonably convenient to both parties; (ii) without notice except
as specified below, sell the Collateral or any part thereof in one or more parcels at public
or private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit
or for future delivery, and upon such other terms as the Collateral Agent may deem
commercially reasonable; (iii) occupy any premises owned or leased by any of the Grantors
where the Collateral or any part thereof is assembled or located for a reasonable period in
order to effectuate its rights and remedies hereunder or under law, without obligation to
such Grantor in respect of such occupation; and (iv) exercise any and all rights and
remedies of any of the Grantors under or in connection with the Collateral, or otherwise in
respect of the Collateral, including, without limitation, (A) any and all rights of such
Grantor to demand or otherwise require payment of any amount under, or performance of any
provision of, the Assigned Agreements, the Receivables, the Related Contracts and the other
Collateral, (B) withdraw, or cause or direct the withdrawal, of all funds with respect to
the Account Collateral and (C) exercise all other rights and
remedies with respect to the Assigned Agreements, the Receivables, the Related
Contracts and the other Collateral, including, without limitation, those set forth in
Section 9-607 of the UCC. Each Grantor agrees that, to the extent notice of sale shall be
required by law, at least ten days’ notice to such Grantor of the time and place of any
public sale or the time after which any private sale is to be made shall constitute
reasonable notification. The Collateral Agent shall not be obligated to make any sale of
Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn
any public or private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and place to which
it was so adjourned.

     (b) Any cash held by or on behalf of the Collateral Agent and all cash proceeds
received by or on behalf of the Collateral Agent in respect of any sale of, collection from,
or other realization upon all or any part of the Collateral may, in the

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discretion of the
Collateral Agent, be held by the Collateral Agent as collateral for, and/or then or at any
time thereafter applied (after payment of any amounts payable to the Collateral Agent
pursuant to the Loan Documents) in whole or in part by the Collateral Agent for the ratable
benefit of the Secured Parties against, all or any part of the Secured Obligations, in the
following manner:

     (i) first, paid to the Agents for any amounts then owing to the Agents pursuant
to Section 8.04 of the Credit Agreement or otherwise under the Loan Documents,
ratably in accordance with such respective amounts then owing to the Agents; and

     (ii) second, ratably (A) paid to the Lenders and the Hedge Banks, respectively,
for any amounts then owing to them, in their capacities as such, under the Loan
Documents ratably in accordance with such respective amounts then owing to such
Lenders and the Hedge Banks, provided that, for purposes of this Section 22, the
amount owing to any such Hedge Bank pursuant to any Secured Hedge Agreement to which
it is a party (other than any amount therefore accrued and unpaid) shall be deemed
to be equal to the Agreement Value therefor and (B) deposited as Collateral in the
L/C Collateral Account up to an amount equal to 105% of the aggregate Available
Amount of all outstanding Letters of Credit, provided that in the event that any
such Letter of Credit is drawn, the Collateral Agent shall pay to the Issuing Bank
that issued such Letter of Credit the amount held in the L/C Collateral Account in
respect of such Letter of Credit, provided further that, to the extent that any such
Letter of Credit shall expire or terminate undrawn and as a result thereof the
amount of the Collateral in the L/C Collateral Account shall exceed 105% of the
aggregate Available Amount of all then outstanding Letters of Credit, such excess
amount of such Collateral shall be applied in accordance with the remaining order of
priority set out in this Section 22(b).

Any surplus of such cash or cash proceeds held by or on the behalf of the Collateral Agent
and remaining after payment in full of all the Secured Obligations shall be paid
over to the applicable Grantor or to whomsoever may be lawfully entitled to receive such
surplus.

     (c) All payments received by any Grantor under or in connection with any Assigned
Agreement or otherwise in respect of the Collateral shall be received in trust for the
benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and
shall be forthwith paid over to the Collateral Agent in the same form as so received (with
any necessary indorsement).

     (d) The Collateral Agent may, without notice to any Grantor except as required by law
and at any time or from time to time, charge, set-off and otherwise apply all or any part of
the Secured Obligations against any funds held with respect to the Account Collateral or in
any other deposit account.

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     (e) In the event of any sale or other disposition of any of the Intellectual Property
Collateral of any Grantor, the goodwill symbolized by any Trademarks subject to such sale or
other disposition shall be included therein, and such Grantor shall supply to the Collateral
Agent or its designee such Grantor’s written know-how and written expertise, and documents
relating to any Intellectual Property Collateral subject to such sale or other disposition,
and such Grantor’s customer lists and other records and documents relating to such
Intellectual Property Collateral and to the manufacture, distribution, advertising and sale
of products and services of such Grantor.

     (f) After the cure or waiver of all Events of Default theretofore existing, upon
request by the Borrower and at the Borrower’s expense, the Collateral Agent will deliver to
the Borrower appropriate evidence of revocation of any notice previously delivered to a
third party relating to the Collateral Agent’s exercise of its rights over the Collateral.

          Section 23.
Amendments; Waivers; Additional Grantors; Supplements to Schedules, Etc. (a) No amendment or waiver of any provision of this Agreement, and no consent to any
departure by any Grantor herefrom, shall in any event be effective unless the same shall be in
writing and signed by the Collateral Agent, and then such waiver or consent shall be effective only
in the specific instance and for the specific purpose for which given. No failure on the part of
any party to this Agreement to exercise, and no delay in exercising any right hereunder, shall
operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude
any other or further exercise thereof or the exercise of any other right.

          (b) Upon the execution and delivery, or authentication, by any Person of a security agreement
supplement in substantially the form of Exhibit A hereto (each a “Security Agreement Supplement”),
(i) such Person shall be referred to as an “Additional Grantor” and shall be and become a Grantor
hereunder, and each reference in this Agreement and the other Loan Documents to “Grantor” shall
also mean and be a reference to such Additional Grantor, and each reference in this Agreement and
the other Loan Documents to “Collateral” shall also mean and be a reference to the Collateral of
such Additional Grantor, and (ii) the supplemental schedules I-X attached to each Security
Agreement Supplement shall be incorporated into and
become a part of and supplement Schedules I-X, respectively, hereto, and the Collateral Agent
may attach such supplemental schedules to such Schedules; and each reference to such Schedules
shall mean and be a reference to such Schedules as supplemented pursuant to each Security Agreement
Supplement.

          (c) Upon the execution and delivery by any Grantor of a Security Agreement Supplement with
appropriate modifications to reflect such Grantor’s status as an existing Grantor, any supplemental
schedules to such Security Agreement Supplement shall be incorporated into and become a part of and
supplement the corresponding schedules to this Agreement, and the Collateral Agent may attach such
supplemental schedules to such Schedules; and each reference to such Schedules shall mean and be a
reference to such Schedules as supplemented pursuant to such Security Agreement Supplement;
provided that this clause (c) shall not apply to Schedule IV.

          Section 24.
Notices, Etc. (a) Except in the case of notices and other communications expressly permitted to be given by
telephone (and except as provided in

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subsection (b) below), all notices and other communications
provided for herein shall be in writing and shall be delivered by hand or overnight courier
service, mailed by certified or registered mail or sent by telecopier as follows, and all notices
and other communications expressly permitted hereunder to be given by telephone shall be made to
the applicable telephone number, as follows:

     (i) if to the Borrower or the Collateral Agent, to the address, telecopier
number, electronic mail address or telephone number specified for such Person in the
Credit Agreement; and

     (ii) if to Holdings or any other Grantor, to the address, telecopier number,
electronic mail address or telephone number specified as such Grantor’s chief
executive office on Schedule I hereto.

          Notices sent by hand or overnight courier service, or mailed by certified or registered mail,
shall be deemed to have been given when received; notices sent by telecopier shall be deemed to
have been given when sent (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the next business day
for the recipient). Notices delivered through electronic communications to the extent provided in
subsection (b) below shall be effective as provided in such subsection (b).

     (b) Electronic Communications. The Collateral Agent or any Grantor may, in its
discretion, agree to accept notices and other communications to it hereunder by electronic
communications pursuant to procedures approved by it, provided that approval of such
procedures may be limited to particular notices or communications.

          Unless the Collateral Agent otherwise prescribes, notices and other communications sent to an
e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the
intended recipient (such as by the “return receipt requested” function, as available, return e-mail
or other written acknowledgement), provided that if such notice or other communication is
not sent during the normal business hours of the recipient, such
notice or communication shall be deemed to have been sent at the opening of business on the
next business day for the recipient.

          Section 25. Continuing Security Interest; Assignments under the Credit Agreement. This Agreement shall create a continuing security interest in the Collateral and shall (a)
remain in full force and effect until the latest of (i) the payment in full in cash of the Secured
Obligations, (ii) the Maturity Date and (iii) the termination or expiration of all Letters of
Credit and all Secured Hedge Agreements, (b) be binding upon each Grantor, its successors and
assigns and (c) inure, together with the rights and remedies of the Collateral Agent hereunder, to
the benefit of the Secured Parties and their respective successors, transferees and assigns.
Without limiting the generality of the foregoing clause (c), any Lender may assign or otherwise
transfer all or any portion of its rights and obligations under the Credit Agreement (including,
without limitation, all or any portion of its Commitments, the Loans owing to it and the Note or
Notes, if any, held by it) subject to compliance with Section 10.06 of the Credit Agreement, and
such permitted assignee or transferee shall thereupon become vested with all the benefits in
respect

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thereof granted to such Lender herein or otherwise, in each case as provided in Section
10.06 of the Credit Agreement.

          Section 26. Release; Termination. (a) Upon any sale, lease, transfer or other Disposition of any item of Collateral of any
Grantor in accordance with the terms of the Loan Documents (other than sales of Inventory in the
ordinary course of business as to which the assignment and security interest created hereunder
shall be automatically released), (i) (x) if the value of the assets so disposed of in any single
transaction or series of related transactions does not exceed $10,000,000 or (y) if the value of
assets so Disposed of in any transaction or series of related transactions exceeds $10,000,000 and
the Borrower notifies the Collateral Agent at least five Business Days in advance of such proposed
Disposition, then in each case with respect to clauses (x) and (y) such item of Collateral shall be
automatically released from the assignment and security interest created under this Agreement upon
consummation of such Disposition and (ii) if the value of assets so Disposed of in any transaction
or series of related transactions exceeds $10,000,000 and the Borrower does not notify the
Collateral Agent at least five Business Days in advance of such Disposition, then such item shall
not be released from the assignment and security interest created under this Agreement until such
time as the Collateral Agent shall have executed and delivered to such Grantor the release referred
to in the next succeeding sentence. The Collateral Agent agrees to execute and deliver (at such
Grantor’s expense) such documents as such Grantor shall reasonably request to evidence the release
of an item of Collateral from the assignment and security interest granted hereby to the extent
that (A) such Grantor shall have delivered to the Collateral Agent a written request for release
describing the item of Collateral and the terms of the sale, lease, transfer or other disposition
in reasonable detail, including, without limitation, the price thereof and an estimate of any
expenses in connection therewith, together with a form of release for execution by the Collateral
Agent and a certificate of such Grantor to the effect that the transaction is in compliance with
the Loan Documents and as to such other matters as the Collateral Agent may request and (B) the
proceeds of any such sale, lease, transfer or other disposition required to be applied, or any
payment to be made in connection therewith, in
accordance with Section 2.04 of the Credit Agreement shall, if and to the extent so required
as of the date of such certificate, have been paid or made to, or in accordance with the
instructions of, the Collateral Agent when and as required under Section 2.04 of the Credit
Agreement. Each Grantor agrees that it will notify the Collateral Agent within two Business Days
after any Disposition by such Grantor of a type referred to in subclause (x) of clause (i) above
involving assets with a fair market value of $1,000,000 or more.

          (b) Upon the latest of (i) the payment in full in cash of the Secured Obligations, (ii) the
Maturity Date and (iii) the termination or expiration of all Letters of Credit and all Secured
Hedge Agreements, the pledge and security interest granted hereby shall terminate and all rights to
the Collateral shall revert to the applicable Grantor. Upon any such termination, the Collateral
Agent will, at the applicable Grantor’s expense, execute and deliver to such Grantor such documents
as such Grantor shall reasonably request to evidence such termination and reversion.

          Section 27. Execution in Counterparts. This Agreement may be executed in any number of 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. Delivery of an

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executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of an original executed counterpart of this Agreement.

          Section 28. Governing Law.
This Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York.

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          IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly executed and delivered
by its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 	 	 
	 	 	CRICKET COMMUNICATIONS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Dean M. Luvisa	 	 
	 

	 	 	 	 

Name: Dean M. Luvisa
	 	 
	 

	 	 	 	Title: Acting Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	Address for Notices:	 	LEAP WIRELESS INTERNATIONAL, INC.
	10307 Pacific Center Court
	 	 	 	 	 	 
	San Diego, CA 92121
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Dean M. Luvisa	 	 
	 

	 	 	 	 

Name: Dean M. Luvisa
	 	 
	 

	 	 	 	Title: Acting Chief Financial Officer	 	 

	 	 	 
	Address for Notices:

	 	BACKWIRE.COM, INC.
	10307 Pacific Center Court

	 	TELEPHONE ENTERTAINMENT NETWORK, INC.
	San Diego, CA 92121

	 	CHASETEL LICENSEE CORP.

CRICKET LICENSEE (ALBANY), INC.

CRICKET LICENSEE (COLUMBUS), INC.

CRICKET LICENSEE (DENVER) INC.

CRICKET LICENSEE (LAKELAND) INC.

CRICKET LICENSEE (MACON), INC.

CRICKET LICENSEE (NORTH CAROLINA) INC.

CRICKET LICENSEE (PITTSBURGH) INC.

CRICKET LICENSEE (REAUCTION), INC.

CRICKET LICENSEE I, INC.

CRICKET LICENSEE II, INC.

CRICKET LICENSEE III, INC.

CRICKET LICENSEE IV, INC.

CRICKET LICENSEE V, INC.

CRICKET LICENSEE VI, INC.

CRICKET LICENSEE VII, INC.

CRICKET LICENSEE VIII, INC.

CRICKET LICENSEE IX, INC.

CRICKET LICENSEE X, INC.

CRICKET LICENSEE XII, INC.

CRICKET LICENSEE XIII, INC.

 

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CRICKET LICENSEE XIV, INC.

CRICKET LICENSEE XV, INC.

CRICKET LICENSEE XVI, INC.

CRICKET LICENSEE XVII, INC.

CRICKET LICENSEE XVIII, INC.

CRICKET LICENSEE XIX, INC.

CRICKET LICENSEE XX, INC.

CRICKET HOLDINGS DAYTON, INC.

MCG PCS LICENSEE CORPORATION, INC.

CHASETEL REAL ESTATE HOLDING COMPANY, INC.

CRICKET ALABAMA PROPERTY COMPANY

CRICKET ARIZONA PROPERTY COMPANY

CRICKET ARKANSAS PROPERTY COMPANY

CRICKET CALIFORNIA PROPERTY COMPANY

CRICKET COLORADO PROPERTY COMPANY

CRICKET FLORIDA PROPERTY COMPANY

CRICKET GEORGIA PROPERTY COMPANY, INC.

CRICKET IDAHO PROPERTY COMPANY

CRICKET ILLINOIS PROPERTY COMPANY

CRICKET INDIANA PROPERTY COMPANY

CRICKET KANSAS PROPERTY COMPANY

CRICKET KENTUCKY PROPERTY COMPANY

CRICKET MICHIGAN PROPERTY COMPANY

CRICKET MINNESOTA PROPERTY COMPANY

CRICKET MISSISSIPPI PROPERTY COMPANY

CRICKET NEBRASKA PROPERTY COMPANY

CRICKET NEVADA PROPERTY COMPANY

CRICKET NEW MEXICO PROPERTY COMPANY

CRICKET NEW YORK PROPERTY COMPANY, INC.

CRICKET NORTH CAROLINA PROPERTY COMPANY

CRICKET OHIO PROPERTY COMPANY

CRICKET OKLAHOMA PROPERTY COMPANY

CRICKET OREGON PROPERTY COMPANY

CRICKET PENNSYLVANIA PROPERTY COMPANY

CRICKET TEXAS PROPERTY COMPANY

CRICKET UTAH PROPERTY COMPANY

CRICKET WASHINGTON PROPERTY COMPANY

CRICKET WISCONSIN PROPERTY COMPANY

LEAP PCS MEXICO, INC.

	 	 	 	 	 	 	 
	 

	 	By:	 	/s/ Dean M. Luvisa	 	 
	 

	 	 	 	 

Name: Dean M. Luvisa
	 	 
	 

	 	 	 	Title: Acting Chief Financial Officer

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