Document:

EXHIBIT 4.3

 Exhibit 4.3 
  
 [Face of 144A Global Note] 
  
 THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL
OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT
NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE
PRIOR WRITTEN CONSENT OF THE COMPANY. 
  
 THIS SECURITY HAS NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED,
PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION. 
  
 THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE (THE “RESALE
RESTRICTION TERMINATION DATE”), WHICH IS TWO YEARS AFTER THE LATER OF THE ORIGINAL ISSUE DATE HEREOF AND THE LAST DATE ON WHICH GRANDE COMMUNICATIONS HOLDINGS, INC. (“GRANDE”) OR ANY AFFILIATE OF GRANDE WAS THE OWNER OF THIS SECURITY
(OR ANY PREDECESSOR OF SUCH SECURITY) ONLY (A) TO GRANDE OR ANY SUBSIDIARY THEREOF, (B) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHICH NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, (C) PURSUANT TO OFFERS AND
SALES TO NON-U.S. PURCHASERS THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT, (D) TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (A)(1), (2), (3) OR (7) OF RULE
501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN INSTITUTIONAL ACCREDITED INVESTOR, FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, (E) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, OR (F) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT, SUBJECT TO GRANDE’S AND THE TRUSTEE’S RIGHT PRIOR TO 

  

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ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (D) OR (F) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION
SATISFACTORY TO EACH OF THEM, AND IN EACH OF THE FOREGOING CASES, A CERTIFICATE OF TRANSFER IN THE FORM APPEARING ON THE OTHER SIDE OF THIS SECURITY IS COMPLETED AND DELIVERED BY THE TRANSFEROR TO THE TRUSTEE. THIS LEGEND WILL BE REMOVED UPON THE
REQUEST OF THE HOLDER AFTER THE RESALE RESTRICTION TERMINATION DATE. 
  
 THE SECURITY EVIDENCED BY THIS CERTIFICATE IS INITIALLY ISSUED AS PART OF AN ISSUANCE OF UNITS (THE “UNITS”), EACH OF WHICH CONSISTS OF $1,000 PRINCIPAL AMOUNT AT MATURITY OF THE 14% SENIOR SECURED NOTES DUE 2011 (THE
“NOTES”) OF GRANDE COMMUNICATIONS HOLDINGS, INC. AND ONE WARRANT TO PURCHASE 100.336 SHARES OF COMMON STOCK, PAR VALUE $0.001 PER SHARE, OF GRANDE COMMUNICATIONS HOLDINGS, INC., SUBJECT TO CERTAIN ADJUSTMENTS. 
  
 PRIOR TO THE EARLIEST TO OCCUR OF (I) 180 DAYS AFTER THE CLOSING OF THE
OFFERING OF THE UNITS, (II) THE DATE ON WHICH A REGISTRATION STATEMENT WITH RESPECT TO A REGISTERED EXCHANGE OFFER FOR THE NOTES IS DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (III) THE DATE ON WHICH A SHELF REGISTRATION STATEMENT WITH RESPECT TO
THE WARRANT SHARES IS DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (IV) IN THE EVENT A CHANGE OF CONTROL (AS DEFINED IN THE INDENTURE GOVERNING THE NOTES) OCCURS, THE DATE ON WHICH THE COMPANY MAILS THE REQUIRED NOTICE THEREOF TO THE HOLDERS OF
NOTES OF THE OCCURRENCE OF A CHANGE OF CONTROL, (V) IN THE EVENT AN ASSET SALE OFFER (AS DEFINED IN THE INDENTURE GOVERNING THE NOTES) IS REQUIRED TO BE MADE, THE DATE ON WHICH THE COMPANY MAILS THE REQUIRED NOTICE THEREOF TO THE HOLDERS OF NOTES OF
THE OCCURRENCE OF SUCH ASSET SALE OFFER, (VI) IN THE EVENT THAT THE COMPANY ENGAGES IN AN OPTIONAL REDEMPTION OF THE NOTES AFTER AN EQUITY OFFERING (AS DEFINED IN THE INDENTURE GOVERNING THE NOTES), THE DATE ON WHICH THE COMPANY MAILS THE REQUIRED
NOTICE THEREOF TO THE HOLDERS OF NOTES OF SUCH OPTIONAL REDEMPTION, (VII) A RESTRUCTURING (AS DEFINED IN THE INDENTURE GOVERNING THE NOTES), (VIII) AN EVENT OF DEFAULT UNDER THE INDENTURE GOVERNING THE NOTES, AND (IX) SUCH DATE AS BEAR, STEARNS
& CO. INC. IN ITS SOLE DISCRETION SHALL DETERMINE, THE SECURITY EVIDENCED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED OR EXCHANGED SEPARATELY FROM, BUT MAY BE TRANSFERRED OR EXCHANGED ONLY AS A UNIT. 
  

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 CUSIP: 38655V AG4 
  

14% Senior Secured Note due 2011 
  
 No. 1 
  
 $133,500,000 
  
 GRANDE COMMUNICATIONS HOLDINGS, INC. promises to pay to Cede & Co., or its registered assigns, the principal sum of ONE HUNDRED THIRTY-THREE MILLION FIVE HUNDRED THOUSAND DOLLARS on April 1, 2011. 
  

			
	Interest Payment Dates:	  	April 1 and October 1
		
	Record Dates:	  	March 15 and September 15
		
	Dated: March 23, 2004	  	 

  

			
	 GRANDE COMMUNICATIONS HOLDINGS, INC.

		
	By:	 	 
	 	 	

	 	 	 Name:
 Title:

  
 This is one of the Notes
referred to in the within-mentioned Indenture: 
  

			
	U.S. BANK NATIONAL ASSOCIATION, as Trustee
		
	By:	 	 
	 	 	

	 	 	 Authorized Signatory

  

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 [Back of 144A Global Note] 
  
 14% Senior Secured Note due 2011 
  
 Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
  
 (1) Interest. Grande Communications Holdings, Inc., a Delaware
corporation (the “Company”), promises to pay interest on the principal amount of this Note at 14% per annum until maturity and shall pay the Liquidated Damages, if any, payable pursuant to Section 5 of the Registration Rights Agreement
referred to below. The Company will pay interest and Liquidated Damages, if any, semi-annually in arrears on April 1 and October 1 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each, an “Interest
Payment Date”). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance; provided that if there is no existing Default in the payment of
interest, and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided further that the
first Interest Payment Date shall be October 1, 2004. The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate that is
0.50% per annum in excess of the rate then in effect; it will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any, (without regard to any
applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  
 (2) Method of Payment. The Company will pay interest on the Notes (except defaulted interest) and Liquidated Damages,
if any, to the Persons who are registered Holders of Notes at the close of business on the March 15 or September 15 next preceding the Interest Payment Date, even if such Notes are canceled after such record date and on or before such Interest
Payment Date, except as provided in Section 2.12 of the Indenture with respect to defaulted interest. The Notes will be payable as to principal, premium, Liquidated Damages, if any, and interest at the office or agency of the Company maintained for
such purpose within or without the City and State of New York, or, at the option of the Company, payment of interest and Liquidated Damages, if any, may be made by check mailed to the Holders at their addresses set forth in the register of Holders;
provided that payment by wire transfer of immediately available funds will be required with respect to principal of and interest, premium and Liquidated Damages, if any, on, all Global Notes and all other Notes the Holders of which will have
provided wire transfer instructions to the Company or the Paying Agent. Such payment will be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. 
  
 (3) Paying Agent and Registrar. Initially, U.S. Bank National
Association, the Trustee under the Indenture, will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder; provided, however, that the Company shall at all
times maintain a Paying Agent office. The Company or any of its Subsidiaries may act in any such capacity. 
  

 R-1 

  
 (4) Indenture and
Security Documents. The Company issued the Notes under an Indenture dated as of March 23, 2004 (the “Indenture”) among the Company, the Guarantors and the Trustee. The terms of the Notes include those stated in the Indenture and those
made part of the Indenture by reference to the TIA. The Notes are subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of such terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are secured by a pledge of the Collateral pursuant to the Security Documents referred to in the Indenture. 
  
 (5) Optional Redemption. 
  
 (a) Except as set forth in subparagraph (b) of this
Paragraph 5, the Company will not have the option to redeem the Notes prior to April 1, 2008. On or after April 1, 2008, the Company may redeem all or a part of the Notes upon not less than 10 days’ nor more than 60 days’ notice, at the
redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes redeemed to the applicable redemption date, if redeemed during the twelve-month period
beginning on April 1 of the years indicated below, subject to the rights of Holders on the relevant record date to receive interest on the relevant interest payment date: 
  

				
	 Year

	  	Percentage

	 
	 2008
	  	107.000	%
	 2009
	  	103.500	%
	 2010 and thereafter
	  	100.000	%

  
 Unless the Company defaults in the
payment of the redemption price, interest will cease to accrue on the notes or portions thereof called for redemption on the applicable redemption date. 
  
 (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior to April 1, 2007, the Company may on any one
or more occasions redeem Notes issued under the Indenture at a redemption price of 114% of the principal amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any, to the redemption date, with the net cash proceeds of one or
more Equity Offerings; provided that at least 65% of the aggregate principal amount of Initial Notes originally issued under the Indenture on the Issue Date (excluding Notes held by the Company and its Subsidiaries) remains outstanding immediately
after the occurrence of such redemption and the redemption occurs within 90 days of the date of the closing of such Equity Offering. 
  
 (6) Mandatory Redemption. The Company will not be required to make mandatory redemption or sinking fund payments with respect to the Notes.

  
 (7) Repurchase at the Option of Holder. 
  
 (a) If there is a Change of Control, the Company will be
required to make an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000) of each Holder’s Notes at a purchase price equal to 101% of the aggregate
principal amount of Notes repurchased plus accrued and unpaid interest and 

  

 R-2 

 
Liquidated Damages, if any, on the Notes repurchased to the date of purchase, subject to the rights of Holders on the relevant record date to receive
interest due on the relevant interest payment date (the “Change of Control Payment”). Within 30 days following any Change of Control, the Company will mail a notice to each Holder setting forth the procedures governing the Change of
Control Offer as required by the Indenture. 
  
 (b) If the Company or a Restricted Subsidiary of the Company consummates any Asset Sales, within twenty days of each date on which the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company will commence an offer to all
Holders of Notes and all holders of other Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in the Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (an
“Asset Sale Offer”) in accordance with Section 4.10 of the Indenture to purchase the maximum principal amount of Notes and such other pari passu Indebtedness that may be purchased out of the Excess Proceeds at an offer price in cash
in an amount equal to 100% of the principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any, to the date of purchase, in accordance with the procedures set forth in the Indenture. If any Excess Proceeds remain
unapplied after consumption of an Asset Sale Offer, the Company and its Restricted Subsidiaries may use those Excess Proceeds for any purpose not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other pari
passu Indebtedness surrendered by holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and other pari passu Indebtedness to be purchased on a pro rata basis. Holders of Notes that are the subject of an
offer to purchase will receive notice of an Asset Sale Offer from the Company prior to any related purchase date and may elect to have such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase” attached to
the Notes. 
  
 (8) Notice of Redemption. Notice of
redemption will be mailed at least 10 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to a
redemption date if the notice is issued in connection with a defeasance of the Notes or a satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000 may be redeemed in part but only in whole multiples of $1,000, unless all
of the Notes held by a Holder are to be redeemed. On and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption. 
  

(9) Denominations, Transfer, Exchange. The Notes are in registered form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion
of any Note being redeemed in part. Also, the Company need not exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period between a record date and the corresponding
Interest Payment Date. 
  

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 (10) Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for all
purposes. 
  
 (11) Amendment, Supplement and Waiver.
Subject to certain exceptions, the Indenture, the Guarantees or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes and Additional Notes, if any, voting as
a single class, and any existing Default or Event of Default or compliance with any provision of the Indenture, the Subsidiary Guarantees or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then
outstanding Notes voting as a single class. Without the consent of any Holder of a Note, the Indenture, the Subsidiary Guarantees or the Notes may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption of the Company’s or any Guarantor’s obligations to Holders of the Notes and Subsidiary Guarantees in case of a merger or consolidation or
sale of all or substantially all of the Company’s or such Guarantor’s assets, as applicable, to effect the release of a Guarantor from its Subsidiary Guarantee and the termination of such Subsidiary Guarantee, all in accordance with the
provisions of the Indenture governing such release and termination, to add any Subsidiary Guarantees or to secure the Notes or any Subsidiary Guarantees, to make any change that would provide any additional rights or benefits to the Holders of Notes
or that does not adversely affect the legal rights under the Indenture of any such Holder, to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA, to conform the text of the
Indenture or the Notes to any provision of the “Description of Notes” section of the Company’s Offering Memorandum dated March 9, 2004 relating to the initial offering of the Notes, to the extent that such provision in that
“Description of Notes” was intended to be a verbatim recitation of a provision of the Indenture, the Subsidiary Guarantees or the Notes, or to provide for a successor Trustee in accordance with the provisions of the Indenture. 

 
 (12) Defaults and Remedies. Events of Default include: (i) default
for 30 days in the payment when due of interest on, or Liquidated Damages, if any, with respect to, the Notes; (ii) default in the payment when due (at maturity, upon redemption or otherwise) of the principal of, or premium, if any, on the Notes;
(iii) failure by the Company to comply with its obligations under Section 5.01 of the Indenture or to consummate a purchase of Notes when required pursuant to Sections 4.10 or 4.15 of the Indenture; (iv) failure by the Company or any of its
Restricted Subsidiaries for 30 days after notice by the Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Notes to comply with the provisions of Sections 4.07 or 4.09 of the Indenture or to comply with the
provisions of Sections 4.10 or 4.15 of the Indenture to the extent not described in clause (iii) above; (v) failure by the Company or any of its Restricted Subsidiaries for 60 days after notice to the Company by the Trustee or the Holders of at
least 25% in aggregate principal amount of the then outstanding Notes to comply with any of the other agreements in the Indenture, the Notes or the Security Documents; (vi) default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted Subsidiaries) whether such
Indebtedness or guarantee now exists, or is created after the Issue Date, if that default: (a) is caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior to the expiration of the grace period 

  

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provided in such Indebtedness on the date of such default (a “Payment Default”); or (b) results in the acceleration of such Indebtedness prior to
its express maturity, and, in each case, (x) the principal amount of any such Indebtedness, together with the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so
accelerated, aggregates $10.0 million or more and (y) such default shall have not have been remedied, cured or waived by the holders of the relevant Indebtedness within 60 days after such default; (vii) any final judgment or decree (to the extent
not covered by insurance) for the payment of money in excess of $10.0 million is entered against the Company or any of its Restricted Subsidiaries and is not paid or discharged, and there is any period of 60 consecutive days following entry of such
final judgment or decree during which a stay of enforcement of such final judgment or decree, by reason of pending appeal or otherwise, is not in effect; (viii) except as permitted by the Indenture, any Subsidiary Guarantee is held in any judicial
proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect or any Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee; (ix) the Company, any Significant Subsidiary of the Company or
any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary: (a) commences a voluntary case under any Bankruptcy Law, (b) consents to the entry of an order for relief against it or them in an involuntary
case, (c) consents to the appointment of a custodian or receiver of it or them or for all or substantially all of its or their property, (d) makes a general assignment for the benefit of its or their creditors, (e) consents to or acquiesces in the
institution of a bankruptcy or an insolvency proceeding against it or them, or (f) takes any corporate action to authorize or effect any of the foregoing; (x) a court of competent of competent jurisdiction enters an order or decree under any
Bankruptcy Law that: (a) is for relief in an involuntary case against the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; (b) appoints a
custodian or receiver of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary or for all or substantially all of the property of any of the
foregoing; or (c) orders the liquidation of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, and the order or decree remains unstayed and
in effect for 60 days; (xi) certain events of bankruptcy or insolvency described in the Indenture with respect to the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken
together, would constitute a Significant Subsidiary; and (xii)(a) default by the Company or any Guarantor in the performance of the Security Documents which could reasonably be expected to adversely affect the enforceability, validity, perfection or
priority of the Note Liens or which could reasonably be expected to adversely affect the condition or value of the Collateral, in each case, taken as a whole, in any material respect, (b) repudiation or disaffirmation by the Company or any of such
Guarantors of its or their obligations under the Security Documents or (c) the determination in a judicial proceeding that all or any material portion of the Security Documents, taken as a whole, are unenforceable or invalid, for any reason, against
the Company or any of the Guarantors. If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately.
Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of bankruptcy or insolvency described in clause (xi) above, all outstanding Notes will become due and payable immediately without further action or notice
(subject to applicable law). Holders 

  

 R-5 

 
may not enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount of
the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the
payment of principal of, premium or Liquidated Damages, if any, or interest on, any Note) if it in good faith determines that withholding notice is in their interest. The Holders of a majority in aggregate principal amount of the then outstanding
Notes by written notice to the Trustee may, on behalf of all of the Holders, rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default (except nonpayment of
principal, interest or premium or Liquidated Damages, if any, that has become due solely because of the acceleration) have been cured or waived. The Company is required to deliver to the Trustee annually a statement regarding compliance with the
Indenture, and the Company is required upon becoming aware of any Default or Event of Default, to deliver to the Trustee a statement specifying such Default or Event of Default. 
  
 (13) Trustee Dealings With Company. The Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 
  

(14) No Recourse Against Others. A director, officer, employee, incorporator or stockholder, of the Company or any of the Guarantors, as such,
will not have any liability for any obligations of the Company or such Guarantor under the Notes, the Subsidiary Guarantees or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder
by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for the issuance of the Notes. 
  
 (15) Authentication. This Note will not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. 

 
 (16) Abbreviations. Customary abbreviations may be used in the name
of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors
Act). 
  
 (17) Additional Rights and Obligations of Holders of
Restricted Global Notes and Restricted Definitive Notes. In addition to the rights and obligations of Holders of Notes under the Indenture, each Holder of Restricted Global Notes or Restricted Definitive Notes will have all the rights and
obligations set forth in the Registration Rights Agreement dated as of March 23, 2004 among the Company, the Guarantors and the other parties named on the signature pages thereof or, in the case of Additional Notes, Holders of Restricted Global
Notes and Restricted Definitive Notes will have the rights and obligations set forth in one or more registration rights agreements, if any, among the Company, the Guarantors and the other parties thereto, relating to rights given by the Company and
the Guarantors to the purchasers of any Additional Notes (collectively, the “Registration Rights Agreement”). By such Holders acceptance of Restricted Global Notes or Restricted Definitive Notes, such Holder acknowledges and agrees to the
provisions of the Registration Rights Agreement, including without limitation the obligations of 

  

 R-6 

 
the Holders with respect to indemnification of the Company and the Guarantors to the extent provided therein. 
  
 (18) CUSIP Numbers. Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the
accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  
 (19) Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS
NOTE AND THE SUBSIDIARY GUARANTEES. 
  
 The Company will furnish
to any Holder upon written request and without charge a copy of the Indenture and/or the Registration Rights Agreement. Requests may be made to: 
  
 Grande Communications Holdings, Inc. 
 401
Carlson Circle 
 San Marcos, Texas 78666 
 Telecopier No.: (512) 878-4010 
 Attention: Chief Financial Officer 
  

 R-7 

 ASSIGNMENT FORM 
  

To assign this Note, fill in the form below: 
  

			
	 (I) or (we) assign and transfer this Note to:
	 	 
	 	 	

	 	 	 (Insert assignee’s legal name)

  

	
	 
	

	(Insert assignee’s soc. sec. or tax I.D. no.)
	 
	

	 
	

	 
	

	 
	

	 
	

 (Print or type assignee’s name, address and zip code) 
  
 and irrevocably appoint
                                        
                                         to
transfer this Note on the books of the Company. The agent may substitute another to act for him. 
  
 Date:
                                        

  

			
	Your Signature:	 	 
	 	 	

			
	(Sign exactly as your name appears on the face of this Note)
	
	 
	 Signature Guarantee*:
	 	 
	 	 	

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 R-8 

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the
appropriate box below: 
  
              Section 4.10              Section 4.15 
  
 If you want to elect to have only part of the Note purchased by the Company
pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased: 
  
 $
                                        

  
 Date: 
  

			
	Your Signature:	 	 
	 	 	

			
	(Sign exactly as your name appears on the face of this Note)
		
	 Tax Identification No.:
	 	 
	 	 	

	
	 Signature Guarantee*:

	
	 
	

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 R-9 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE 
  
 The following exchanges of a part of this Global Note for an interest in
another Global Note or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an interest in this Global Note, have been made: 
  

									
	Date of Exchange

	  	 Amount of
decrease in
Principal
Amount of this
Global Note

	  	 Amount of
increase in
Principal
Amount of this
Global Note

	  	 Principal
Amount of this
Global Note
following such
decrease
(or increase)

	  	 Signature of
authorized
officer of Trustee
or Custodian

  

 R-10 

 [Face of Regulation S Temporary Global Note] 
  
 THE RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE
FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF INTEREST HEREON. 
  
 THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO
SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) HIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE
INDENTURE AND (4) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY. 
  
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO
A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
  
 THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER
SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION
THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF 

  

 1 

 
THE SECURITIES ACT. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE ISSUER THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED ONLY (1) (a) IN THE UNITED STATES TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (b)
OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (c) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144 UNDER THE SECURITIES ACT, (d) TO AN INSTITUTIONAL “ACCREDITED INVESTOR”
(AS DEFINED IN RULE 501 (a) (1), (2), (3) OR (7) OF THE SECURITIES ACT) THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND,
IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN $250,000, AN OPINION OF COUNSEL ACCEPTABLE TO GRANDE COMMUNICATIONS HOLDINGS, INC. THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT OR (e) IN ACCORDANCE
WITH ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF GRANDE COMMUNICATIONS HOLDINGS, INC. SO REQUESTS), (2) TO GRANDE COMMUNICATIONS HOLDINGS, INC. OR (3) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT AND, IN EACH CASE, IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY
PURCHASER FROM IT OF THE SECURITY EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE. 
  
 THE SECURITY EVIDENCED BY THIS CERTIFICATE IS INITIALLY ISSUED AS PART OF AN ISSUANCE OF UNITS (THE “UNITS”), EACH OF WHICH CONSISTS OF $1,000
PRINCIPAL AMOUNT AT MATURITY OF THE 14% SENIOR SECURED NOTES DUE 2011 (THE “NOTES”) OF GRANDE COMMUNICATIONS HOLDINGS, INC. AND ONE WARRANT TO PURCHASE 100.336 SHARES OF COMMON STOCK, PAR VALUE $0.001 PER SHARE, OF GRANDE COMMUNICATIONS
HOLDINGS, INC., SUBJECT TO CERTAIN ADJUSTMENTS. 
  
 PRIOR TO THE
EARLIEST TO OCCUR OF (I) 180 DAYS AFTER THE CLOSING OF THE OFFERING OF THE UNITS, (II) THE DATE ON WHICH A REGISTRATION STATEMENT WITH RESPECT TO A REGISTERED EXCHANGE OFFER FOR THE NOTES IS DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (III) THE
DATE ON WHICH A SHELF REGISTRATION STATEMENT WITH RESPECT TO THE WARRANT SHARES IS DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (IV) IN THE EVENT A CHANGE OF CONTROL (AS DEFINED IN THE INDENTURE GOVERNING THE NOTES) OCCURS, THE DATE ON WHICH THE
COMPANY MAILS THE REQUIRED NOTICE THEREOF TO THE HOLDERS OF NOTES OF THE OCCURRENCE OF A CHANGE OF CONTROL, (V) IN THE EVENT AN ASSET SALE OFFER (AS DEFINED IN THE INDENTURE GOVERNING THE NOTES) IS REQUIRED TO BE MADE, THE DATE ON WHICH THE COMPANY
MAILS THE REQUIRED NOTICE THEREOF TO THE HOLDERS OF NOTES OF THE OCCURRENCE OF SUCH ASSET SALE OFFER, (VI) IN THE EVENT THAT THE COMPANY ENGAGES IN AN OPTIONAL REDEMPTION OF THE NOTES AFTER AN EQUITY OFFERING (AS DEFINED IN THE INDENTURE GOVERNING
THE NOTES), THE DATE ON WHICH THE COMPANY MAILS THE REQUIRED NOTICE THEREOF TO THE HOLDERS OF NOTES OF SUCH OPTIONAL REDEMPTION, (VII) A RESTRUCTURING (AS DEFINED IN THE INDENTURE GOVERNING THE NOTES), (VIII) AN EVENT OF DEFAULT UNDER THE INDENTURE
GOVERNING THE NOTES, AND (IX) SUCH DATE AS BEAR, STEARNS & CO. INC. IN ITS SOLE DISCRETION SHALL DETERMINE, THE SECURITY EVIDENCED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED OR EXCHANGED SEPARATELY FROM, BUT MAY BE TRANSFERRED OR EXCHANGED ONLY
AS A UNIT. 
  

 2 

 CUSIP: U38303 AC4 
  

14% Senior Secured Note due 2011 
  
 No. 2 
  
 $2,500,000 
  
 GRANDE COMMUNICATIONS HOLDINGS, INC. promises to pay to Cede & Co., or its registered assigns, the principal sum of TWO MILLION FIVE HUNDRED THOUSAND DOLLARS on April 1, 2011. 
  
 Interest Payment Dates: April 1 and October 1 
  
 Record Dates: March 15 and September 15 
  
 Dated: March 23, 2004 
  

			
	 GRANDE COMMUNICATIONS
 HOLDINGS, INC.

		
	 By:
	 	 
	 	 	

	 Name:
	 	 
	 Title:
	 	 

  
 This is one of the Notes
referred to in the within-mentioned Indenture: 
  

			
	 U.S. BANK NATIONAL ASSOCIATION, as Trustee

		
	 By:
	 	 
	 	 	

	 	 	Authorized Signatory

  

 S-1 

 [Back of Regulation S Temporary Global Note] 
  
 14% Senior Secured Note due 2011 
  
 Capitalized terms used herein have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 
  
 (1) Interest. Grande Communications Holdings, Inc., a Delaware
corporation (the “Company”), promises to pay interest on the principal amount of this Note at 14% per annum until maturity and shall pay the Liquidated Damages, if any, payable pursuant to Section 5 of the Registration Rights Agreement
referred to below. The Company will pay interest and Liquidated Damages, if any, semi-annually in arrears on April 1 and October 1 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each, an “Interest
Payment Date”). Interest on the Notes will accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of issuance; provided that if there is no existing Default in the payment of interest,
and if this Note is authenticated between a record date referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date; provided further that the first Interest
Payment Date shall be October 1, 2004. The Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 0.50% per
annum in excess of the rate then in effect; it will pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any, (without regard to any applicable
grace periods) from time to time on demand at the same rate to the extent lawful. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 
  
 Until this Regulation S Temporary Global Note is exchanged for one or more Regulation S Permanent Global Note, the Holder
hereof shall not be entitled to receive payments of interest hereon; until so exchanged in full, this Regulation S Temporary Global Note shall in all other respects be entitled to the same benefits as other Notes under the Indenture. 
  
 (2) Method of Payment. The Company will pay interest on the Notes
(except defaulted interest) and Liquidated Damages, if any, to the Persons who are registered Holders of Notes at the close of business on the March 15 or September 15 next preceding the Interest Payment Date, even if such Notes are canceled after
such record date and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture with respect to defaulted interest. The Notes will be payable as to principal, premium, Liquidated Damages, if any, and interest at the
office or agency of the Company maintained for such purpose within or without the City and State of New York, or, at the option of the Company, payment of interest and Liquidated Damages, if any, may be made by check mailed to the Holders at their
addresses set forth in the register of Holders; provided that payment by wire transfer of immediately available funds will be required with respect to principal of and interest, premium and Liquidated Damages, if any, on, all Global Notes and all
other Notes the Holders of which will have provided wire transfer instructions to the Company or the Paying Agent. Such payment will be in such coin or currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts. 
  

 R-1 

 (3) Paying Agent and Registrar. Initially, U.S. Bank National Association, the Trustee under the
Indenture, will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar without notice to any Holder; provided, however, that the Company shall at all times maintain a Paying Agent office. The Company or
any of its Subsidiaries may act in any such capacity. 
  
 (4)
Indenture and Security Documents. The Company issued the Notes under an Indenture dated as of March 23, 2004 (the “Indenture”) among the Company, the Guarantors and the Trustee. The terms of the Notes include those stated in the
Indenture and those made part of the Indenture by reference to the TIA. The Notes are subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of such terms. To the extent any provision of this Note conflicts
with the express provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are secured by a pledge of the Collateral pursuant to the Security Documents referred to in the Indenture 
  
 (5) Optional Redemption. 
  
 (a) Except as set forth in subparagraph (b) of this
Paragraph 5, the Company will not have the option to redeem the Notes prior to April 1, 2008. On or after April 1, 2008, the Company may redeem all or a part of the Notes upon not less than 10 days’ nor more than 60 days’ notice, at the
redemption prices (expressed as percentages of principal amount) set forth below plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes redeemed to the applicable redemption date, if redeemed during the twelve-month period
beginning on April 1 of the years indicated below, subject to the rights of Holders on the relevant record date to receive interest on the relevant interest payment date: 
  

				
	 Year

	  	Percentage

	 
	 2008
	  	107.000	%
	 2009
	  	103.500	%
	 2010 and thereafter
	  	100.000	%

  
 Unless the Company defaults in the
payment of the redemption price, interest will cease to accrue on the notes or portions thereof called for redemption on the applicable redemption date. 
  
 (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior to April 1, 2007, the Company may on any one
or more occasions redeem Notes issued under the Indenture at a redemption price of 114% of the principal amount thereof, plus accrued and unpaid interest and Liquidated Damages, if any, to the redemption date, with the net cash proceeds of one or
more Equity Offerings; provided that at least 65% of the aggregate principal amount of Initial Notes originally issued under the Indenture on the Issue Date (excluding Notes held by the Company and its Subsidiaries) remains outstanding immediately
after the occurrence of such redemption and the redemption occurs within 90 days of the date of the closing of such Equity Offering. 
  
 (6) Mandatory Redemption. The Company will not be required to make mandatory redemption or sinking fund payments with respect to the Notes.

  

 R-2 

 (7) Repurchase at the Option of Holder. 
  
 (a) If there is a Change of Control, the Company will be
required to make an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $1,000 or an integral multiple of $1,000) of each Holder’s Notes at a purchase price equal to 101% of the aggregate
principal amount of Notes repurchased plus accrued and unpaid interest and Liquidated Damages, if any, on the Notes repurchased to the date of purchase, subject to the rights of Holders on the relevant record date to receive interest due on the
relevant interest payment date (the “Change of Control Payment”). Within 30 days following any Change of Control, the Company will mail a notice to each Holder setting forth the procedures governing the Change of Control Offer as required
by the Indenture. 
  
 (b) If the Company or a
Restricted Subsidiary of the Company consummates any Asset Sales, within twenty days of each date on which the aggregate amount of Excess Proceeds exceeds $10.0 million, the Company will commence an offer to all Holders of Notes and all holders of
other Indebtedness that is pari passu with the Notes containing provisions similar to those set forth in the Indenture with respect to offers to purchase or redeem with the proceeds of sales of assets (an “Asset Sale Offer”) in
accordance with Section 4.10 of the Indenture to purchase the maximum principal amount of Notes and such other pari passu Indebtedness that may be purchased out of the Excess Proceeds at an offer price in cash in an amount equal to 100% of
the principal amount thereof plus accrued and unpaid interest and Liquidated Damages, if any, to the date of purchase, in accordance with the procedures set forth in the Indenture. If any Excess Proceeds remain unapplied after consumption of an
Asset Sale Offer, the Company and its Restricted Subsidiaries may use those Excess Proceeds for any purpose not otherwise prohibited by the Indenture. If the aggregate principal amount of Notes and other pari passu Indebtedness surrendered by
holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select the Notes and other pari passu Indebtedness to be purchased on a pro rata basis. Holders of Notes that are the subject of an offer to purchase will receive notice
of Asset Sale Offer from the Company prior to any related purchase date and may elect to have such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase” attached to the Notes. 
  
 (8) Notice of Redemption. Notice of redemption will be mailed at least
10 days but not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its registered address, except that redemption notices may be mailed more than 60 days prior to a redemption date if the notice is issued
in connection with a defeasance of the Notes or a satisfaction or discharge of the Indenture. Notes in denominations larger than $1,000 may be redeemed in part but only in whole multiples of $1,000, unless all of the Notes held by a Holder are to be
redeemed. On and after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption. 
  
 (9) Denominations, Transfer, Exchange. The Notes are in registered form without coupons in denominations of $1,000 and integral multiples of
$1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need not exchange or register the transfer of 

  

 R-3 

 
any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, the Company need not
exchange or register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period between a record date and the corresponding Interest Payment Date. 
  
 This Regulation S Temporary Global Note is exchangeable in whole or in part
for one or more Global Notes only (i) on or after the termination of the 40-day distribution compliance period (as defined in Regulation S) and (ii) upon presentation of certificates (accompanied by an Opinion of Counsel, if applicable) required by
Article 2 of the Indenture. Upon exchange of this Regulation S Temporary Global Note for one or more Global Notes, the Trustee shall cancel this Regulation S Temporary Global Note. 
  
 (10) Persons Deemed Owners. The registered Holder of a Note may be treated as its owner for all purposes. 

 
 (11) Amendment, Supplement and Waiver. Subject to certain
exceptions, the Indenture, the Subsidiary Guarantees or the Notes may be amended or supplemented with the consent of the Holders of at least a majority in principal amount of the then outstanding Notes and Additional Notes, if any, voting as a
single class, and any existing Default or Event of Default or compliance with any provision of the Indenture, the Subsidiary Guarantees or the Notes may be waived with the consent of the Holders of a majority in principal amount of the then
outstanding Notes voting as a single class. Without the consent of any Holder of a Note, the Indenture, the Subsidiary Guarantees or the Notes may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for
uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption of the Company’s or any Guarantor’s obligations to Holders of the Notes and Subsidiary Guarantees in case of a merger or consolidation or
sale of all or substantially all of the Company’s or such Guarantor’s assets, as applicable, to effect the release of a Guarantor from its Subsidiary Guarantee and the termination of such Subsidiary Guarantee, all in accordance with the
provisions of the Indenture governing such release and termination, to add any Subsidiary Guarantees or to secure the Notes or any Subsidiary Guarantees, to make any change that would provide any additional rights or benefits to the Holders of Notes
or that does not adversely affect the legal rights under the Indenture of any such Holder, to comply with the requirements of the SEC in order to effect or maintain the qualification of the Indenture under the TIA, to conform the text of the
Indenture or the Notes to any provision of the “Description of Notes” section of the Company’s Offering Memorandum dated March 9, 2004 relating to the initial offering of the Notes, to the extent that such provision in that
“Description of Notes” was intended to be a verbatim recitation of a provision of the Indenture, the Subsidiary Guarantees or the Notes, or to provide for a successor Trustee in accordance with the provisions of the Indenture. 

 
 (12) Defaults and Remedies. Events of Default include: (i) default
for 30 days in the payment when due of interest on, or Liquidated Damages, if any, with respect to, the Notes; (ii) default in the payment when due (at maturity, upon redemption or otherwise) of the principal of, or premium, if any, on the Notes;
(iii) failure by the Company to comply with its obligations under Section 5.01 of the Indenture or to consummate a purchase of Notes when required pursuant to Sections 4.10 or 4.15 of the Indenture; (iv) failure by the Company or any of its
Restricted Subsidiaries for 30 days after notice by the Trustee or the Holders of at least 25% in 

  

 R-4 

 
aggregate principal amount of the then outstanding Notes to comply with the provisions of Sections 4.07 or 4.09 of the Indenture or to comply with the
provisions of Sections 4.10 or 4.15 of the Indenture to the extent not described in clause (iii) above; (v) failure by the Company or any of its Restricted Subsidiaries for 60 days after notice to the Company by the Trustee or the Holders of at
least 25% in aggregate principal amount of the then outstanding Notes to comply with any of the other agreements in the Indenture, the Notes or the Security Documents; (vi) default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness for money borrowed by the Company or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Company or any of its Restricted Subsidiaries) whether such
Indebtedness or guarantee now exists, or is created after the Issue Date, if that default: (a) is caused by a failure to pay principal of, or interest or premium, if any, on such Indebtedness prior to the expiration of the grace period provided in
such Indebtedness on the date of such default (a “Payment Default”); or (b) results in the acceleration of such Indebtedness prior to its express maturity, and, in each case, (x) the principal amount of any such Indebtedness, together with
the principal amount of any other such Indebtedness under which there has been a Payment Default or the maturity of which has been so accelerated, aggregates $10.0 million or more and (y) such default shall have not have been remedied, cured or
waived by the holders of the relevant Indebtedness within 60 days after such default; (vii) any final judgment or decree (to the extent not covered by insurance) for the payment of money in excess of $10.0 million is entered against the Company or
any of its Restricted Subsidiaries and is not paid or discharged, and there is any period of 60 consecutive days following entry of such final judgment or decree during which a stay of enforcement of such final judgment or decree, by reason of
pending appeal or otherwise, is not in effect; (viii) except as permitted by the Indenture, any Subsidiary Guarantee is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect or any
Guarantor denies or disaffirms its obligations under its Subsidiary Guarantee; (ix) the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary: (a)
commences a voluntary case under any Bankruptcy Law, (b) consents to the entry of an order for relief against it or them in an involuntary case, (c) consents to the appointment of a custodian or receiver of it or them or for all or substantially all
of its or their property, (d) makes a general assignment for the benefit of its or their creditors, (e) consents to or acquiesces in the institution of a bankruptcy or an insolvency proceeding against it or them, or (f) takes any corporate action to
authorize or effect any of the foregoing; (x) a court of competent of competent jurisdiction enters an order or decree under any Bankruptcy Law that: (a) is for relief in an involuntary case against the Company, any Significant Subsidiary of the
Company or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; (b) appoints a custodian or receiver of the Company, any Significant Subsidiary of the Company or any group of Restricted Subsidiaries
that, taken together, would constitute a Significant Subsidiary or for all or substantially all of the property of any of the foregoing; or (c) orders the liquidation of the Company, any Significant Subsidiary of the Company or any group of
Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary, and the order or decree remains unstayed and in effect for 60 days; (xi) certain events of bankruptcy or insolvency described in the Indenture with respect to
the Company or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary; and (xii)(a) default by the Company or any Guarantor in the
performance of the Security Documents 

  

 R-5 

 
which could reasonably be expected to adversely affect the enforceability, validity, perfection or priority of the Note Liens or which could reasonably be
expected to adversely affect the condition or value of the Collateral, in each case, taken as a whole, in any material respect, (b) repudiation or disaffirmation by the Company or any of such Guarantors of its or their obligations under the Security
Documents or (c) the determination in a judicial proceeding that all or any material portion of the Security Documents, taken as a whole, are unenforceable or invalid, for any reason, against the Company or any of the Guarantors. If any Event of
Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the then outstanding Notes may declare all the Notes to be due and payable immediately. Notwithstanding the foregoing, in the case of an Event of
Default arising from certain events of bankruptcy or insolvency described in clause (xi) above, all outstanding Notes will become due and payable immediately without further action or notice (subject to applicable law). Holders may not enforce the
Indenture or the Notes except as provided in the Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Notes may direct the Trustee in its exercise of any trust or power. The Trustee may
withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal of, premium or Liquidated Damages, if any, or interest on, any Note) if it in good
faith determines that withholding notice is in their interest. The Holders of a majority in aggregate principal amount of the then outstanding Notes by written notice to the Trustee may, on behalf of all of the Holders, rescind an acceleration and
its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default (except nonpayment of principal, interest or premium or Liquidated Damages, if any, that has become due solely because of the
acceleration) have been cured or waived. The Company is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Company is required upon becoming aware of any Default or Event of Default, to deliver
to the Trustee a statement specifying such Default or Event of Default. 
  
 (13) Trustee Dealings With Company. The Trustee, in its individual or any other capacity, may make loans to, accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its
Affiliates, as if it were not the Trustee. 
  
 (14) No Recourse
Against Others. A director, officer, employee, incorporator or stockholder, of the Company or any of the Guarantors, as such, will not have any liability for any obligations of the Company or such Guarantor under the Notes, the Subsidiary
Guarantees or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration
for the issuance of the Notes. 
  
 (15) Authentication.
This Note will not be valid until authenticated by the manual signature of the Trustee or an authenticating agent. 
  
 (16) Abbreviations. Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (=
tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to Minors Act). 
  

 R-6 

 (17) Additional Rights and Obligations of Holders of Restricted Global Notes and Restricted Definitive
Notes. In addition to the rights and obligations of Holders of Notes under the Indenture, each Holder of Restricted Global Notes or Restricted Definitive Notes will have all the rights and obligations set forth in the Registration Rights
Agreement dated as of March 23, 2004 among the Company, the Guarantors and the other parties named on the signature pages thereof or, in the case of Additional Notes, Holders of Restricted Global Notes and Restricted Definitive Notes will have the
rights and obligations set forth in one or more registration rights agreements, if any, among the Company, the Guarantors and the other parties thereto, relating to rights given by the Company and the Guarantors to the purchasers of any Additional
Notes (collectively, the “Registration Rights Agreement”). By such Holders acceptance of Restricted Global Notes or Restricted Definitive Notes, such Holder acknowledges and agrees to the provisions of the Registration Rights Agreement,
including without limitation the obligations of the Holders with respect to indemnification of the Company and the Guarantors to the extent provided therein. 
  
 (18) CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Company has caused
CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of such numbers either as printed on the Notes or as contained in any
notice of redemption and reliance may be placed only on the other identification numbers placed thereon. 
  
 (19) Governing Law. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE SUBSIDIARY
GUARANTEES. 
  
 The Company will furnish to any Holder upon
written request and without charge a copy of the Indenture and/or the Registration Rights Agreement. Requests may be made to: 
  
 Grande Communications Holdings, Inc. 
 401 Carlson Circle 
 San Marcos, Texas 78666 
 Telecopier No.: (512) 878-40108144 
 Attention: Chief Financial Officer 
  

 R-7 

 ASSIGNMENT FORM 
  

To assign this Note, fill in the form below: 
  

			
	(I) or (we) assign and transfer this Note to:	  	

	 	  	(Insert assignee’s legal name)

  

	
	 
	

	 (Insert assignee’s soc. sec. or tax I.D. no.)

	
	 
	

	
	 
	

	
	 
	

	
	 
	

	
	 
	

	 (Print or type assignee’s name, address and zip code)

  
 and irrevocably appoint
___________________________________________ to transfer this Note on the books of the Company. The agent may substitute another to act for him. 
  
 Date:                                     
    
  

			
	Your Signature:	 	 
	 	 	

  
 (Sign exactly as your name appears on
the face of this Note) 
  

			
	Signature Guarantee*:	 	 
	 	 	

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 R-8 

 OPTION OF HOLDER TO ELECT PURCHASE 
  
 If you want to elect to have this Note purchased by the Company pursuant to Section 4.10 or 4.15 of the Indenture, check the
appropriate box below: 
  
              Section 4.10                      Section 4.15

  
 If you want to elect to have only part of the Note purchased
by the Company pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased: 
  
 $                     
  
 Date:
                     
  

			
	Your Signature:	 	 
	 	 	

 (Sign exactly as your name appears on the face of this Note) 
  

			
	Tax Identification No.:	 	 
	 	 	

  

			
	Signature Guarantee*:	 	 
	 	 	

	*	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor acceptable to the Trustee). 

  

 R-9 

 SCHEDULE OF EXCHANGES OF INTERESTS IN THE REGULATION S 
 TEMPORARY GLOBAL NOTE 
  
 The following exchanges of a part of this Regulation S Temporary Global Note for an interest in another Global Note, or exchanges of a part of another
other Restricted Global Note for an interest in this Regulation S Temporary Global Note, have been made: 
  

									
	 Date of
Exchange

	  	Amount of
decrease in
Principal
Amount of this
Global Note

	  	Amount of
increase in
Principal
Amount of this
Global Note

	  	Principal
Amount of this
Global Note
following such
decrease (or
increase)

	  	Signature of
authorized
officer of Trustee
or Custodian

  
  

 R-10 

 SUBSIDIARY GUARANTEE NOTATION 
  
 For value received, each Guarantor (which term includes any successor Person under the Indenture) has, jointly and
severally, unconditionally guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture dated as of March 23, 2004 (the “Indenture”) among Grande Communications Holdings, Inc. (the
“Company”), the Guarantors party thereto and U.S. Bank National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal of, premium and Liquidated Damages, if any, and interest on, the Notes,
whether at maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on overdue principal of and interest on the Notes, if any, if lawful, and the due and punctual performance of all other obligations of the
Company to the Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full when
due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Subsidiary Guarantee
and the Indenture are expressly set forth in Article 10 of the Indenture and reference is hereby made to the Indenture for the precise terms of the Subsidiary Guarantee. Each Holder of a Note, by accepting the same agrees to and shall be bound by
such provisions. 
  

 G-1 

 Capitalized terms used but not defined herein have the meanings given to them in the Indenture.

  

			
	 GRANDE COMMUNICATIONS, INC.
 GRANDE COMMUNICATIONS CLEARSOURCE, INC.
 GRANDE COMMUNICATIONS NETWORKS, INC.
 GRANDE COMMUNICATIONS HOUSTON, INC.

		
	BY:	 	 
	 	 	

	 	 	 NAME:

	 	 	 TITLE:

  

			
	 DENTON TELECOM HOLDINGS I, LLC
 DENTON TELECOM INVESTORS I, LLC

		
	BY:	 	 GRANDE COMMUNICATIONS, INC.

	 	 	 ITS SOLE MEMBER

  

			
		
	BY:	 	 
	 	 	

	 	 	 NAME:

	 	 	 TITLE:

  

			
	 DENTON TELECOM PARTNERS I, LLP

		
	BY:	 	 DENTON TELECOM HOLDINGS I, LLC

	 	 	 ITS GENERAL PARTNER 

  

			
		
	BY:	 	 GRANDE COMMUNICATIONS, INC.

	 	 	 ITS SOLE MEMBER

  

			
	 
		
	BY:	 	 
	 	 	

	 	 	 NAME:

	 	 	 TITLE:

  

 G-2 

 SUBSIDIARY GUARANTEE NOTATION 
  
 For value received, each Guarantor (which term includes any successor Person under the Indenture) has, jointly and
severally, unconditionally guaranteed, to the extent set forth in the Indenture and subject to the provisions in the Indenture dated as of March 23, 2004 (the “Indenture”) among Grande Communications Holdings, Inc. (the
“Company”), the Guarantors party thereto and U.S. Bank National Association, as trustee (the “Trustee”), (a) the due and punctual payment of the principal of, premium and Liquidated Damages, if any, and interest on, the Notes,
whether at maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on overdue principal of and interest on the Notes, if any, if lawful, and the due and punctual performance of all other obligations of the
Company to the Holders or the Trustee all in accordance with the terms of the Indenture and (b) in case of any extension of time of payment or renewal of any Notes or any of such other obligations, that the same will be promptly paid in full when
due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration or otherwise. The obligations of the Guarantors to the Holders of Notes and to the Trustee pursuant to the Subsidiary Guarantee
and the Indenture are expressly set forth in Article 10 of the Indenture and reference is hereby made to the Indenture for the precise terms of the Subsidiary Guarantee. Each Holder of a Note, by accepting the same agrees to and shall be bound by
such provisions. 
  

 G-1 

 Capitalized terms used but not defined herein have the meanings given to them in the Indenture.

  

			
	 GRANDE COMMUNICATIONS, INC.
 GRANDE COMMUNICATIONS CLEARSOURCE, INC.
 GRANDE COMMUNICATIONS NETWORKS, INC.
 GRANDE COMMUNICATIONS HOUSTON, INC.

		
	BY:	 	 
	 	 	

	 	 	 NAME:

	 	 	 TITLE:

  

			
	 DENTON TELECOM HOLDINGS I, LLC
 DENTON TELECOM INVESTORS I, LLC

		
	BY:	 	 GRANDE COMMUNICATIONS, INC.

	 	 	 ITS SOLE MEMBER 

  

			
	 
		
	BY:	 	 
	 	 	

	 	 	 NAME:

	 	 	 TITLE:

  

			
	 DENTON TELECOM PARTNERS I, LLP

		
	BY:	 	 DENTON TELECOM HOLDINGS I, LLC

	 	 	 ITS GENERAL PARTNER

  

			
	 
		
	BY:	 	 GRANDE COMMUNICATIONS, INC.

	 	 	 ITS SOLE MEMBER

  

			
	 
		
	BY:	 	 
	 	 	

	 	 	 NAME:

	 	 	 TITLE:

  

 G-2EXHIBIT 4.4

 Exhibit 4.4 
  
 PLEDGE AND SECURITY AGREEMENT, 
  
 dated as of March 23, 2004, 
  
 among 
  
 GRANDE COMMUNICATIONS HOLDINGS, INC., as Issuer and a Grantor, 
  
 and 
  
 GRANDE COMMUNICATIONS HOUSTON, INC., 
 GRANDE COMMUNICATIONS, INC.,

 GRANDE COMMUNICATIONS NETWORKS, INC., 
 GRANDE COMMUNICATIONS CLEARSOURCE, INC., 
 DENTON TELECOM HOLDINGS I, LLC, 
 DENTON TELECOM INVESTORS I, LLC, 
  
 and 
  
 DENTON TELECOM PARTNERS I, LLP, 
  
 as Grantors 
  
 and

  
 U.S. BANK NATIONAL ASSOCIATION, 
  
 as Collateral Agent 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	PAGE

	1.	 	DEFINITIONS.	  	2
	 	 	1.1	  	 General Definitions
	  	2
	 	 	1.2	  	 Definitions; Interpretation
	  	7
			
	2.	 	GRANT OF SECURITY.	  	7
	 	 	2.1	  	 Grant of Security
	  	7
	 	 	2.2	  	 Indenture
	  	8
			
	3.	 	SECURITY FOR OBLIGATIONS.	  	8
	 	 	3.1	  	 Security for Obligations
	  	8
	 	 	3.2	  	 Obligations Remain.
	  	9
	 	 	3.3	  	 Postponement of Subrogation
	  	9
	 	 	3.4	  	 Security Interest Absolute, etc.
	  	9
			
	4.	 	REPRESENTATIONS AND WARRANTIES AND COVENANTS.	  	11
	 	 	4.1	  	 Generally
	  	11
	 	 	4.2	  	 Intellectual Property
	  	13
	 	 	4.3	  	 Investment Property
	  	15
	 	 	4.4	  	 Chattel Paper, Instruments and Deposit Accounts
	  	17
			
	5.	 	FURTHER ASSURANCES; ADDITIONAL GRANTORS.	  	18
	 	 	5.1	  	 Further Assurances
	  	18
	 	 	5.2	  	 Additional Grantors
	  	19
			
	6.	 	ATTORNEY-IN-FACT.	  	19
	 	 	6.1	  	 Power of Attorney
	  	19
	 	 	6.2	  	 No Duty on the Part of Collateral Agent
	  	20
			
	7.	 	REMEDIES.	  	20
	 	 	7.1	  	 Generally
	  	20
	 	 	7.2	  	 Application of Proceeds
	  	22
	 	 	7.3	  	 Investment Property
	  	22
	 	 	7.4	  	 Intellectual Property
	  	23
	 	 	7.5	  	 Licenses
	  	25
			
	8.	 	CONTINUING SECURITY INTEREST; TERMINATION AND RELEASE.	  	25
			
	9.	 	STANDARD OF CARE; SECURED PARTY MAY PERFORM.	  	26
			
	10.	 	INDEMNITY.	  	26
			
	11.	 	MISCELLANEOUS.	  	27
	 	 	11.1	  	 Notices
	  	27
	 	 	11.2	  	 Expenses
	  	27

  

 i 

							
	 	 	11.3	  	 Amendments and Waivers
	  	27
	 	 	11.4	  	 Successors and Assigns
	  	28
	 	 	11.5	  	 Independence of Covenants
	  	28
	 	 	11.6	  	 Survival of Representations, Warranties and Agreements
	  	28
	 	 	11.7	  	 No Waiver; Remedies Cumulative
	  	28
	 	 	11.8	  	 Marshaling; Payments Set Aside
	  	28
	 	 	11.9	  	 Severability
	  	28
	 	 	11.10	  	 Headings
	  	28
	 	 	11.11	  	 Applicable Law
	  	29
	 	 	11.12	  	 Consent To Jurisdiction
	  	29
	 	 	11.13	  	 Waiver Of Jury Trial
	  	29
	 	 	11.14	  	 Counterparts
	  	29
	 	 	11.15	  	 Effectiveness
	  	29
	 	 	11.16	  	 Entire Agreement
	  	29
	 	 	11.17	  	 Trust Indenture Act Controls
	  	30

  
 SCHEDULE 4.1 – FINANCING
STATEMENTS 
  
 SCHEDULE 4.2 – INTELLECTUAL PROPERTY 
  
 SCHEDULE 4.3 – INVESTMENT PROPERTY 
  
 SCHEDULE 4.4(e) – COMMERCIAL TORT CLAIMS 
  
 EXHIBIT A – FORM OF SECURITY AGREEMENT SUPPLEMENT 
  
 EXHIBIT B – FORM OF JOINDER AGREEMENT 
  

 ii 

 PLEDGE AND SECURITY AGREEMENT 
  
 This PLEDGE AND SECURITY AGREEMENT, dated as of March 23, 2004 (as amended, restated, supplemented or otherwise modified
from time to time, this “Agreement”), made by GRANDE COMMUNICATIONS HOLDINGS, INC., a Delaware Corporation having an office at 401 Carlson Circle, San Marcos, Texas 78666 (“Company” or
“Issuer”), GRANDE COMMUNICATIONS HOUSTON, INC., a Delaware Corporation having an office at 401 Carlson Circle, San Marcos, Texas 78666, GRANDE COMMUNICATIONS, INC., a Delaware Corporation having an office at 401 Carlson
Circle, San Marcos, Texas 78666, GRANDE COMMUNICATIONS NETWORKS, INC., a Delaware Corporation having an office at 401 Carlson Circle, San Marcos, Texas 78666, GRANDE COMMUNICATIONS CLEARSOURCE, INC., a Delaware Corporation having an office at 401
Carlson Circle, San Marcos, Texas 78666, DENTON TELECOM HOLDINGS I, LLC, a Delaware Limited Liability Company having an office at 401 Carlson Circle, San Marcos, Texas 78666, DENTON TELECOM INVESTORS I, LLC, a Delaware Limited Liability Company
having an office at 401 Carlson Circle, San Marcos, Texas 78666 and DENTON TELECOM PARTNERS I, LLP, a Delaware Partnership having an office at 401 Carlson Circle, San Marcos, Texas 78666 (collectively, the “Guarantors”) (the Company,
together with each Guarantor that may from time to time become a party hereto pursuant to Section 5.2, the “Grantors”) and U.S. Bank National Association, acting as collateral agent (“Collateral
Agent”) for the benefit of the Secured Parties (as defined below). 
  
 RECITALS 
  
 A. The Company
and U.S. Bank National Association, a national banking association having an office at 180 East Fifth Street, St. Paul, Minnesota 55101 (in such capacity, the “Trustee”), have entered into that certain Indenture dated as of
the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), pursuant to which the Company shall issue $136,000,000 aggregate principal amount at maturity of its first
priority 14% Senior Secured Notes due 2011 (the “Notes”). 
  
 B. Each Guarantor has, pursuant to the Indenture, among other things, unconditionally guaranteed the obligations of the Issuer under the Indenture and the Notes. 
  
 C. Each Guarantor will receive substantial direct and indirect benefits from
the execution, delivery and performance of the obligations under the Indenture and the Notes and is, therefore, willing to enter into this Agreement. 
  
 D. Each Grantor is or, as to Collateral (as hereinafter defined) acquired by such Grantor after the date hereof will be, the legal and/or beneficial owner
of the Collateral pledged by it hereunder. 
  
 E. This Agreement
is given by each Grantor in favor of the Collateral Agent for the benefit of the Secured Parties to secure the payment and performance of all of the Secured Obligations (as hereinafter defined). 
  
 F. Certain Subsidiaries of the Company may from time to time execute and
deliver guaranties (in addition to the Guarantors) and become Grantors hereunder. 

 NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, each Grantor and Collateral Agent, for and on behalf of itself and the Secured Parties, agree as follows: 
  

	1.	DEFINITIONS. 

  
 1.1 General Definitions. In this Agreement, the following terms shall have the following meanings: 
  
 “Accounts” shall mean all
“accounts” as defined in Article 9 of the UCC excluding assets described as Excluded Assets. 
  
 “Acting Secured Parties” shall mean, as of any date of determination, the Secured Parties holding more than 25% of
the sum of the unpaid Accreted Value of the Notes. Any action so taken by the Trustee shall constitute an action on behalf of all of the Notes without regard to the percentage of the Holders directing or authorizing the Trustee to take such action.

  
 “Accreted Value”
shall have the meaning set forth in the Indenture. 
  
 “Additional Grantors” shall mean those additional Persons that may become parties to this Agreement as additional Grantors, by executing a Joinder Agreement. 
  
 “Agreement” shall have the meaning
set forth in the preamble. 
  
 “Books” shall mean books and records of Grantors (including all of their Records indicating, summarizing, or evidencing assets (including the Collateral) or liabilities, all Records relating to Grantor’s
business operations or financial conditions, and all of their goods or General Intangibles related to such information. 
  
 “Capital Lease Obligations” shall mean a liability in respect of a capital lease that at the time any
determination thereof is to be made would be required to be capitalized on a balance sheet in accordance with GAAP. 
  
 “Capital Stock” shall mean: 
  
 (1) in the case of a corporation, corporate stock, warrants and options; 
  
 (2) in the case of an association or business entity, any
and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock; 
  
 (3) in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and

  
 (4) any other interest or participation that
confers on a Person the right to receive a share of the profits and losses of, or distributions of assets (including dividends) of, the issuing Person. 
  

 2 

 “Cash Equivalents” shall have the meaning set forth in the
Indenture. 
  
 “Chattel
Paper” shall mean all “chattel paper” as defined in Article 9 of the UCC, including, without limitation, “electronic chattel paper” or “tangible chattel paper”, as each term is defined in Article 9 of the
UCC, excluding assets described in the definition of Excluded Collateral. 
  
 “Collateral” shall have the meaning set forth in Section 2.1. 
  
 “Collateral Agent” shall have the meaning set forth in the preamble. 
  
 “Collateral Documents”
shall mean this Agreement, together with any supplemental security agreements delivered (including, but not limited to, trademark, patent and copyright agreements and deposit account agreements), in each case as amended, supplemented, amended and
restated or otherwise modified from time to time in accordance with the terms and provisions hereof and thereof. 
  
 “Commercial Tort Claims” shall mean all “commercial tort claims” as defined in Article 9 of the UCC,
including, without limitation, the commercial tort claims listed on Schedule 4.4(e), excluding assets described in the definition of Excluded Collateral. 
  
 “Commodities Accounts” shall mean all “commodity accounts” as defined in
Article 9 of the UCC, excluding assets described in the definition of Excluded Collateral. 
  
 “Communications Act” shall mean the Communications Act of 1934, as amended, and the rules and regulations of the
FCC, as from time to time in effect. 
  
 “Controlled Foreign Corporation” shall mean “controlled foreign corporation” as defined in the United States Internal Revenue Code of 1986, as amended from time to time. 
  
 “Copyrights” shall mean (i)
copyrights and copyright registrations, including, without limitation, the copyright registrations listed on Schedule 4.2(A) and (A) all income, royalties, damages and payments now and hereafter due or payable under and with respect thereto,
including, without limitation, payments under all licenses entered into in connection therewith and damages and payments for past or future infringements thereof, (B) the right to sue for past, present and future infringements thereof, and (C) all
of any Grantor’s rights corresponding thereto throughout the world; and (ii) all proceeds of any and all of the foregoing, including, without limitation, licensed royalties and proceeds of infringement suits, in each case, excluding assets
described in the definition of Excluded Collateral. 
  
 “Deposit Accounts” shall mean all “deposit accounts” as defined in Article 9 of the UCC, excluding assets described in the definition of Excluded Collateral. 
  
 “Document” shall mean
“document” as defined in Article 9 of the UCC, excluding assets described in the definition of Excluded Collateral. 
  
 “Equipment” shall mean ”equipment” as defined in Article 9 of the UCC, excluding assets described in the
definition of Excluded Collateral. 
  

 3 

 “Excluded Collateral” shall have the meaning set forth in the
Indenture. 
  
 “Event of
Default” shall mean any “Event of Default” as defined in any Secured Agreement. 
  
 “FCC” shall mean the Federal Communications Commission or any Governmental Body succeeding to the functions
thereof. 
  
 “Financial
Asset” shall mean any “financial asset” as defined in Article 8 of the UCC, excluding assets described in the definition of Excluded Collateral. 
  
 “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as have been
approved by a significant segment of the accounting profession, which are in effect from time to time. 
  
 “General Intangibles” shall mean any “general intangible” as defined in Article 9 of the UCC, excluding
assets described in the definition of Excluded Collateral. 
  
 “Governmental Body” shall mean any nation or government, any state or other political subdivision thereof, any entity exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government and any court or arbitrator. 
  
 “Grantor” shall have the meaning set forth in the preamble hereof. 
  
 “Guarantor” shall have the meaning set forth in the Recitals hereof. 
  
 “Instrument” shall mean any
“instrument” as defined in Article 9 of the UCC, excluding assets described in the definition of Excluded Collateral. 
  
 “Intellectual Property” shall mean, collectively, the Copyrights, the Patents, the Trademarks and the Intellectual
Property Licenses. 
  
 “Intellectual
Property Licenses” shall mean all rights under or interest in any Patent, Trademark or Copyright license agreements with any other party, whether a Grantor is a licensee or licensor under any such license agreement, excluding assets
described in the definition of Excluded Collateral; provided, however, that Intellectual Property Licenses shall not include any license agreement in effect as of the date hereof which by its terms prohibits the grant of the security
interest contemplated by this Agreement and which prohibition is not rendered ineffective (meaning that such Lien would not create a default under such license agreement) by Article 9 of the UCC, except that upon the termination of such prohibitions
for any reason whatsoever, such license agreement shall be deemed to be included in Intellectual Property Licenses. 
  
 “Inventory” shall mean any “inventory” as defined in Article 9 of the UCC, excluding assets described in
the definition of Excluded Collateral. 
  

 4 

 “Investment Property” shall mean all “investment
property” as defined in Article 9 of the UCC, including all Securities, Securities Accounts and Commodities Accounts, excluding assets described in the definition of Excluded Collateral. 
  
 “Investments” shall have the meaning
set forth in the Indenture. 
  
 “Joinder Agreement” shall mean any joinder to this Agreement in substantially the form of Exhibit B. 
  
 “Letter-of-Credit Right” shall mean any “letter-of-credit right” as defined in Article 9 of the UCC,
excluding assets described in the definition of Excluded Collateral. 
  
 “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest and any filing of or agreement to give any
financing statement, under the UCC (or equivalent statutes) of any jurisdiction. 
  
 “Money” shall mean “money” as defined in Article 9 of the UCC, excluding assets described in the
definition of Excluded Collateral. 
  
 “Noteholders” shall mean each Person in whose name any Note is registered from time to time. 
  
 “Notes” shall have the meaning set forth in the Recitals hereof. 
  
 “Patents” shall mean all (i) patents
and patent applications, including, without limitation, the patents and patent applications listed on Schedule 4.2(B), and (A) all extensions and adjustments thereof, (B) all income, royalties, damages and payments now and hereafter due or
payable under and with respect thereto, including, without limitation, payments under all licenses entered into in connection therewith and damages and payments for past or future infringements thereof, (C) the right to sue for past, present and
future infringements thereof, and (D) all of Grantor’s rights corresponding thereto throughout the world; and (ii) proceeds of any and all of the foregoing, including, without limitation, license royalties and proceeds of infringement suits,
excluding assets described in the definition of Excluded Collateral. 
  
 “Permitted Liens” shall mean Liens that constitute “Permitted Liens” within the meaning of each of the Secured Agreements or are otherwise not prohibited under any of the Secured
Agreements. 
  
 “Person”
shall mean any individual, corporation, partnership, joint venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity. 
  
 “Record” shall mean
“record” as defined in Article 9 of the UCC. 
  
 “Required Secured Parties” shall have the meaning set forth in the Indenture. 
  

 5 

 “Secured Agreements” shall mean the Collateral Documents, the
Indenture, the Notes, the Subsidiary Guaranties and all other documents, certificates and instruments relating to, arising out of, or in any way connected therewith. 
  
 “Secured Obligations” shall mean all obligations (whether or not constituting future
advances, obligatory or otherwise) of the Issuer and any and all of the Guarantors from time to time arising under or in respect of this Agreement, the Indenture, the Notes and the other Security Agreements (including, without limitation, the
obligations to pay principal, interest and all other charges, fees, expenses, commissions, reimbursements, premiums, indemnities and other payments related to or in respect of the obligations contained in this Agreement, the Indenture, the Notes and
the other Secured Agreements), in each case whether (i) such obligations are direct or indirect, secured or unsecured, joint or several, absolute or contingent, due or to become due whether at stated maturity, by acceleration or otherwise, (ii)
arising in the regular course of business or otherwise, (iii) for payment or performance and/or (iv) now existing or hereafter arising (including, without limitation, interest and other obligations arising or accruing after the commencement of any
bankruptcy, insolvency, reorganization or similar proceeding with respect to the Issuer or any other Grantor or any other Person, or which would have arisen or accrued but for the commencement of such proceeding, even if such obligation or the claim
therefor is not enforceable or allowable in such proceeding). 
  
 “Secured Parties” means the Trustee, the Noteholders and the Collateral Agent. 
  
 “Securities Accounts” shall mean all “securities accounts” as defined in Article 8 of the UCC, excluding
assets described in the definition of Excluded Collateral. 
  
 “Securities Act” means the Securities Act of 1933, as amended from time to time, and any successor statute. 
  
 “Security” shall mean any “security” as defined in Article 8 of the UCC,
excluding assets described in the definition of Excluded Collateral. 
  
 “Security Agreement Supplement” shall mean any supplement to this agreement in substantially the form of Exhibit A. 
  
 “Subsidiary” shall have the meaning set forth in the Indenture. 
  
 “Subsidiary Guaranties” shall mean,
collectively, all guaranties from time to time entered into by subsidiaries of the Company to guaranty the obligations of the Company under any Secured Agreement. 
  
 “Supporting Obligation” shall mean any “supporting obligation” as defined
in Article 9 of the UCC, excluding assets described in the definition of Excluded Collateral. 
  
 “Trademarks” shall mean (i) all trademarks, trade names, registered trademarks, trademark applications, service
marks, registered service marks and service mark applications, including, without limitation, the trade names, registered trademarks, trademark applications, registered service marks and service mark applications listed on Schedule 4.2(C),
and (A) all renewals and extensions thereof, (B) all income, royalties, damages and payments now and 

  

 6 

 
hereafter due or payable under and with respect thereto, including, without limitation, payments under all licenses entered into in connection therewith and
damages and payments for past or future infringements or dilutions thereof, (C) the right to sue for past, present and future infringements and dilutions thereof, (D) the goodwill of any Grantor’s business symbolized by the foregoing and
connected therewith, and (E) all of any Grantor’s rights corresponding thereto throughout the world; and (ii) all proceeds of any and all of the foregoing, including, without limitation, license royalties and proceeds of infringement suits, in
each case, excluding assets described in the definition of Excluded Collateral. 
  
 “Trustee” shall have the meaning set forth in the Recitals hereof. 
  
 “UCC” shall mean the Uniform
Commercial Code as in effect from time to time in the State of New York or, when the context requires, the Uniform Commercial Code as in effect from time to time in any other applicable jurisdiction. 
  
 1.2 Definitions; Interpretation. All capitalized terms
used herein (including the preamble and recitals hereto) and not otherwise defined herein shall have the meanings ascribed thereto in the Indenture or, if not defined therein, in the UCC. References to “Sections,” “Exhibits” and
“Schedules” shall be to Sections, Exhibits and Schedules, as the case may be, of this Agreement unless otherwise specifically provided. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or
the plural, depending on the reference. The use herein of the word “include” or “including”, when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific
items or matters set forth immediately following such word or to similar items or matters, whether or not nonlimiting language (such as “without limitation” or “but not limited to” or words of similar import) is used with
reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter. All references herein to provisions of the UCC shall include all successor
provisions under any subsequent version or amendment to any Article of the UCC. 
  

	2.	GRANT OF SECURITY. 

  
 2.1 Grant of Security. Each Grantor hereby assigns, pledges, hypothecates, charges, delivers and transfers to the
Collateral Agent for its benefit and the benefit of the Secured Parties and hereby grants to the Collateral Agent for its benefit and the benefit of the Secured Parties, a first priority security interest and continuing lien, subject to Permitted
Liens, on all of such Grantor’s right, title and interest in, to and under all property of such Grantor (whether tangible or intangible) including, but not limited to the following, in each case whether now owned or existing or hereafter
acquired or arising and wherever located (collectively, “Collateral”): 
  

	 	(A)	Accounts; 

  

	 	(B)	Books; 

  

	 	(C)	Chattel Paper; 

  

	 	(D)	Commercial Tort Claims; 

  

 7 

	 	(E)	Deposit Accounts; 

  

	 	(F)	Documents; 

  

	 	(G)	Equipment; 

  

	 	(H)	Financial Assets; 

  

	 	(I)	General Intangibles; 

  

	 	(J)	Intellectual Property; 

  

	 	(K)	Inventory; 

  

	 	(L)	Investment Property; 

  

	 	(M)	Instruments; 

  

	 	(N)	Letter-of-Credit Rights; 

  

	 	(O)	Money; 

  

	 	(P)	Investments in Cash Equivalents, or other assets of any Grantor that now or hereafter come into the possession, custody, or control of Collateral Agent; 

  

	 	(Q)	to the extent not otherwise included above, all Supporting Obligations relating to any of the foregoing; 

  

	 	(R)	to the extent not otherwise included above, all other personal property of the Grantors of any kind or description; and 

  

	 	(S)	to the extent not otherwise included above, all of the proceeds, offspring, rents, income, supporting obligations, profits and products, whether tangible or intangible, of any of
the foregoing, including proceeds of insurance covering any or all of the foregoing; 

  
 provided, however, notwithstanding anything herein to the contrary, in no event shall the Collateral include any Excluded Collateral. 
  
 2.2 Indenture. Notwithstanding anything herein to the contrary, the rights and remedies of Collateral
Agent hereunder shall be subject to and governed by the terms of the Indenture. 
  

	3.	SECURITY FOR OBLIGATIONS. 

  
 3.1 Security for Obligations. With respect to each Grantor, this Agreement secures, and the Collateral granted by such
Grantor is collateral security for, the prompt and complete payment in cash in full or performance in full when due, whether at stated maturity, by required 

  

 8 

 
prepayment, declaration, acceleration, demand or otherwise (including the payment of amounts that would become due but for the operation of the automatic
stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of all obligations of such Grantor hereunder and under the other Secured Agreements to which such Grantor is a party, and for all
Secured Obligations. 
  
 3.2 Obligations
Remain. Anything contained herein to the contrary notwithstanding (a) each Grantor shall remain liable under any partnership agreement or limited liability company agreement relating to any partnership interest or limited liability
company interest included in the Collateral and any other contracts and agreements included in the 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; and (b) Collateral Agent shall not have any obligation or liability under any partnership agreement or limited liability company agreement relating to any partnership interest or limited liability company interest included in the
Collateral and any other contracts and agreements included in the Collateral by reason of this Agreement, nor shall Collateral Agent 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. 
  
 3.3
Postponement of Subrogation. The Grantors agree that they will not exercise any rights which it may acquire by way of rights of subrogation under the Indenture or any other Secured Agreement to which it is a party. No
Grantor shall seek or be entitled to seek any contribution or reimbursement from any other Grantor, in respect of any payment made under the Indenture or any other Secured Agreement or otherwise, until following the payment in cash in full of the
Secured Obligations. Any amount paid to any Grantor on account of any such subrogation rights prior to the payment in cash in full of the Secured Obligations shall be held in trust for the benefit of the Secured Parties and shall immediately be paid
and turned over to the Collateral Agent for the benefit of the Secured Parties in the exact form received by each Grantor (duly endorsed in favor of the Collateral Agent, if required), to be credited and applied against the Secured Obligations,
whether matured or unmatured, in accordance with the Indenture; provided that if any Grantor has made payment to the Secured Parties of all or any part of the Secured Obligations and the Secured Obligations have been paid in cash in full,
then at such Grantor’s request, the Collateral Agent (on behalf of the Secured Parties) will, at the expense of such Grantor, execute and deliver to such Grantor appropriate documents (without recourse and without representation or warranty)
necessary to evidence the transfer by subrogation to such Grantor of an interest in the Secured Obligations resulting from such payment. In furtherance of the foregoing, at all times prior to the payment in cash in full of the Secured Obligations,
each Grantor shall refrain from taking any action or commencing any proceeding against any other Grantor (or its successors or assigns, whether in connection with a bankruptcy proceeding or otherwise) to recover any amounts in respect of payments
made under this Agreement to any Secured Party. 
  
 3.4
Security Interest Absolute, etc. This Agreement shall in all respects be a continuing, absolute, unconditional and irrevocable grant of security interest, and shall remain in full force and effect until the payment in cash
in full of the Secured Obligations. All rights of the Secured Parties and the security interests granted to the Collateral Agent (for its benefit and the ratable benefit of each other Secured Party) hereunder, and all Secured Obligations of the

  

 9 

 
Grantors hereunder, shall, in each case, be absolute, unconditional and irrevocable irrespective of: 
  

	 	(a)	any lack of validity, legality or enforceability of the Indenture or any other Secured Agreement; 

  

	 	(b)	the failure of any Secured Party (i) to assert any claim or demand or to enforce any right or remedy against any Grantor or any other Person (including any other Grantor) under the
provisions of the Indenture or the other Secured Agreement or otherwise, or (ii) to exercise any right or remedy against any other guarantor (including any other Guarantor) of, or collateral securing, any Secured Obligations;

  

	 	(c)	any change in the time, manner or place of payment of, or in any other term of, all or any part of the Secured Obligations, or any other extension, compromise or renewal of any
Secured Obligation; 

  

	 	(d)	any reduction, limitation, impairment or termination of any Secured Obligations for any reason, including any claim of waiver, release, surrender, alteration or compromise, and
shall not be subject to (and each Grantor hereby waives any right to or claim of) any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality, nongenuineness, irregularity, compromise,
unenforceability of, or any other event or occurrence affecting, any Secured Obligations or otherwise; 

  

	 	(e)	any amendment to, rescission, waiver, or other modification of, or any consent to or departure from, any of the terms of the Indenture or any other Secured Agreement;

  

	 	(f)	any addition, exchange or release of any collateral or of any Person that is (or will become) a guarantor (including each Grantor hereunder) of the Secured Obligations, or any
surrender or non-perfection of any collateral, or any amendment to or waiver or release or addition to, or consent to or departure from, any other guaranty held by any Secured Party securing any of the Secured Obligations; or

  

 10 

	 	(g)	any other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, any Grantor, any surety or any guarantor.

  

	4.	REPRESENTATIONS AND WARRANTIES AND COVENANTS. 

  
 4.1 Generally 
  
 (a) Representations and Warranties. Each Grantor hereby represents and warrants on the date hereof that: 
  

	 	(A)	it is the sole legal and beneficial owner of the Collateral with respect to which it is granting a security interest hereunder free and clear of all Liens other than Permitted
Liens; 

  

	 	(B)	upon the filing of all UCC financing statements naming such Grantor as “Debtor” and Collateral Agent as “Secured Party” and describing the Collateral, in the
filing offices set forth opposite such Grantor’s name on Schedule 4.1 hereof and, to the extent not subject to Article 9 of the UCC, upon the recordation of the security interest granted hereunder in Patents, Trademarks and Copyrights in
the applicable patent, trademark and copyright registries (including the United States Patent and Trademark Office and the United States Copyright Office), the security interests granted to Collateral Agent hereunder will constitute valid and, to
the extent that a security interest in such Collateral (other than any Collateral constituting fixtures) can be perfected by the filing of financing statements under the UCC, perfected first priority Liens (subject in the case of priority only to
Permitted Liens); 

  

	 	(C)	no authorization, approval or other action by, and no notice to or filing with, any Governmental Body is required for either (i) the pledge or grant by any Grantor of the Liens
purported to be created in favor of Collateral Agent hereunder or (ii) the exercise by Collateral Agent of any rights or remedies in respect of any Collateral (whether specifically granted or created hereunder or created or provided for by
applicable law), except (A) for the filings contemplated by Section 4.1(a)(B) above, (B) [as required pursuant to Sections 314(b) and 314(d) of the Trust Indenture Act], (C) as may be required, in connection with the disposition of any
Investment Property, by laws generally affecting the offering and sale of Securities and (D) to the extent any consents or approvals are expressly required under communications related laws or franchise laws, including, without limitation, the
Assignment of Claims Act of 1940 and the Communications Act; and 

  

 11 

	 	(D)	in the case of Instruments and Investment Property consisting of certificated securities, upon delivery of such instruments and the certificates representing such certificated
securities (in the case of such certificated securities, duly endorsed or accompanied by duly executed instruments of assignment of transfer in blank) Collateral Agent will have a first priority perfected security interest in such Instruments and
Investment Property (subject in the case of priority only to Permitted Liens). 

  
 (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that: 
  

	 	(A)	except for the security interest created by this Agreement, it shall not create or suffer to exist any Lien upon or with respect to any of the Collateral, except Permitted Liens,
and such Grantor shall (A) defend the Collateral against all Persons at any time claiming any interest therein and (B) file such financing or continuation statements, or amendments thereto, as may be requested by the Collateral Agent to preserve the
perfection of the security interests granted hereunder (other than any security interests in Collateral constituting fixtures); 

  

	 	(B)	it shall not use or permit any Collateral to be used unlawfully or in material violation of any provision of this Agreement or any applicable statute, regulation or ordinance or any
policy of insurance covering the Collateral; 

  

	 	(C)	it shall not change Grantor’s name or jurisdiction of organization unless it shall have (a) notified Collateral Agent in writing, by executing and delivering to Collateral
Agent a completed Security Agreement Supplement, substantially in the form of Exhibit A attached hereto, together with a supplement to Schedule 4.1, at least thirty (30) days prior to any such change, identifying such new proposed name
or jurisdiction of organization and (b) taken all actions necessary to maintain the continuous validity and perfection of Collateral Agent’s security interest in the Collateral intended to be granted hereby; 

  

	 	(D)	it shall make payment of (i) all taxes, assessments, license fees, levies and other charges of Governmental Bodies imposed upon it which if unpaid, would be reasonably likely to
become a Lien on the Collateral that is not a Permitted Lien, and (ii) all claims (including, without limitation, claims for labor, services, materials and supplies) for sums which have become due and payable and which by law have or are reasonably
likely to become a Lien upon any of the Collateral other than a Permitted Lien except for taxes and claims being disputed or contested in good faith and for which adequate reserves have been set aside; 

  

 12 

	 	(E)	upon such Grantor or any officer of such Grantor obtaining knowledge thereof, it shall promptly notify Collateral Agent in writing of the levy of any legal process against the
Collateral or any portion thereof; and 

  

	 	(F)	it shall (i) within 15 calendar days after either the end of each calendar quarter or the request of the Collateral Agent (at the written direction of the Acting Secured Parties),
report to Collateral Agent any new individual item of Collateral acquired by such Grantor during such quarter (other than in the ordinary course of business) that (y) is not Money, Letter-of-Credit Rights, Accounts, Inventory or the subject of the
provisions of Section 4.4, and (z) was not previously disclosed hereunder, (ii) provide such other information and take such other actions in connection with such new Collateral as Collateral Agent (at the written direction of the Acting
Secured Parties) may reasonably request, and (iii) to the extent not inconsistent with any other applicable provisions of this Agreement (including, without limitation, Section 5.1(a)(ii)), take all actions necessary to create and perfect the
security interest intended to be created hereby in such new Collateral; provided, however, that any failure to comply with the requirements of this Paragraph (F) shall not constitute a Default if (I) the actions previously taken in
connection with this Agreement are effective to create and perfect the security interest intended to be created hereby in such new Collateral, or (II) such failure is subsequently remedied at a time when no other Lien (other than a Permitted Lien)
on such Collateral shall have attached and become perfected. 

  
 4.2 Intellectual Property. Representations and Warranties. Except with respect to any patents that have expired or been abandoned on the date hereof, each Grantor hereby represents and warrants,
on the date hereof, that Schedule 4.2 sets forth a true and complete list of all United States federal registrations of and applications for Patents, Trademarks, and registered Copyrights owned by such Grantor and material to the business of
such Grantor. 
  
 (b) Covenants and
Agreements. Each Grantor hereby covenants and agrees as follows: 
  

	 	(A)	it shall not do any act or omit to do any act whereby any of the Intellectual Property which is material to the business of such Grantor may lapse, or become abandoned, dedicated to
the public, or unenforceable, or which would adversely affect the validity, grant, or enforceability of the security interest granted therein or herein; 

  

	 	(B)	 it shall take all reasonable steps in the United States Patent and Trademark Office and the United States Copyright Office, to pursue any application and maintain
any registration of each 

  

 13 

	 	 
Trademark, Patent, and Copyright owned by such Grantor and material to its business which is now or shall become included in the Collateral constituting
Intellectual Property (except for such Intellectual Property with respect to which such Grantor has determined in the exercise of its commercially reasonable judgment that it shall not seek registration) including, but not limited to, those items on
Schedule 4.2(A), (B) and (C); 

  

	 	(C)	it shall (i) within 15 calendar days after either the end of each calendar year or the request of the Collateral Agent (at the written direction of the Acting Secured Parties),
report to Collateral Agent (1) any new application that has been filed during the preceding calendar year in the name of such Grantor to register any Intellectual Property not constituting Excluded Collateral with the United States Patent and
Trademark Office or the United States Copyright Office, and (2) any new registration of such Intellectual Property by any such office, in each case, by executing and delivering to Collateral Agent a completed Security Agreement Supplement,
substantially in the form of Exhibit A attached hereto, together with a supplement to Schedule 4.2 and (ii) provide Collateral Agent, within ten (10) days after any filing described in clause (i)(1) of this Paragraph (C), written
notice of such filing; provided, however, that any failure to comply with the requirements of this clause (ii) shall not constitute a Default if (I) the actions previously taken in connection with this Agreement are effective, and
following such filing will continue to be effective, to create and perfect the security interest intended to be created hereby in the Intellectual Property to which such filing relates, (II) such filing relates to Intellectual Property that is not
reasonably expected to be material to the business of such Grantor at the time of such filing, or (III) such failure is subsequently remedied at a time when no other Lien (other than a Permitted Lien) on the Intellectual Property to which such
filing relates shall have attached and become perfected; and 

  

	 	(D)	if requested by the Collateral Agent (such request to be given at the written request of the Acting Secured Parties) in connection with the actions required pursuant to Section
4.2(b)(C), it shall promptly execute and deliver to Collateral Agent any document required to acknowledge, confirm, register, record, or perfect Collateral Agent’s interest in any part of the new Intellectual Property, whether now owned or
hereafter acquired. 

  

 14 

 4.3 Investment Property. 
  
 (a) Representations and Warranties. Each Grantor hereby represents and warrants, that on the date
hereof: 
  

	 	(A)	Schedule 4.3 sets forth under the headings “Pledged Stock,” “Pledged LLC Interests,” and “Pledged Partnership Interests”, all equity interests
of Subsidiaries and all other equity interests owned by any Grantor included in the Collateral and such equity interests constitute the percentage of issued and outstanding shares of stock, percentage of membership interests, percentage of
partnership interests or percentage of beneficial interest of the respective companies thereof to the extent indicated on such Schedule; 

  

	 	(B)	it is the record and beneficial owner of the equity interests included in the Collateral free of all Liens, rights or claims of other Persons other than Permitted Liens; and

  

	 	(C)	Schedule 4.3 sets forth under the heading “Pledged Debt” all of the issued and outstanding Indebtedness evidenced by an instrument or certificated security of the
respective issuers thereof owing to such Grantor. 

  
 (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that: 
  

	 	(A)	it shall not vote to enable or take any other action to: (a) amend or terminate any partnership agreement, limited liability company agreement, certificate of incorporation, by-laws
or other organizational documents in any way that adversely affects the validity, perfection or priority of Collateral Agent’s security interest, (b) permit any of its Subsidiaries to dispose of all or a material portion of their assets in a
manner which would be prohibited under the Secured Agreements or (c) cause any issuer of any partnership interests or limited liability company interests included in the Collateral which are not securities (for purposes of the UCC) on the date
hereof to elect or otherwise take any action to cause such partnership interests or limited liability company interests to be treated as securities for purposes of the UCC unless such Grantor shall take all steps necessary to establish Collateral
Agent’s “control” thereof; 

  

	 	(B)	 it shall report to the Collateral Agent the acquisition of any new Investment Property (other than any such Collateral that is immaterial) not previously disclosed
hereunder within 30 days of the acquisition thereof by delivering to Collateral Agent a completed Security Agreement Supplement, substantially in the form of Exhibit A attached hereto, together with a supplement to Schedule 4.3,
reflecting such new Investment Property. To the extent that any Investment Property specified on such Schedule 4.3 constitutes certificated Capital Stock of a Subsidiary or certificated Securities, such Grantor shall deliver such certificates
to the Collateral Agent, together with undated stock powers executed in 

  

 15 

	 	 
blank. Notwithstanding the foregoing, it is understood and agreed that the security interest of Collateral Agent shall attach to all Investment Property
immediately upon any Grantor’s acquisition of rights therein and shall not be affected by the failure of any Grantor to deliver a supplement to Schedule 4.3 as required hereby; 

  

	 	(C)	in the event such Grantor receives any dividends, interest, distributions or any securities or other property on account of any Collateral, then such dividends, interest,
distributions, securities and other property shall be included in the definition of Collateral without further action; and 

  

	 	(D)	each Grantor consents to the grant by any other Grantor of a security interest in all Investment Property to Collateral Agent. 

  
 (c) Voting and Distributions. 
  

	 	(A)	So long as no Event of Default shall have occurred and be continuing, subject to applicable laws: 

  

	 	(A)	each Grantor shall be entitled to exercise or refrain from exercising any and all voting and other consensual rights pertaining to the Investment Property or any part thereof for
any purpose not inconsistent with the terms of this Agreement or any Secured Agreement; and 

  

	 	(B)	Collateral Agent shall promptly execute and deliver (or cause to be executed and delivered) to each Grantor all proxies and other instruments as such Grantor may from time to time
reasonably request for the purpose of enabling such Grantor to exercise the voting and other consensual rights it is entitled to exercise pursuant to clause (A) above. 

  

	 	(B)	Upon the occurrence and during the continuation of an Event of Default, subject to applicable laws and the terms of the Secured Agreements: 

  

	 	(A)	all rights of each Grantor to exercise or refrain from exercising the voting and other consensual rights which it would otherwise be entitled to exercise pursuant hereto shall cease
and all such rights shall thereupon become vested in Collateral Agent who shall thereupon have the sole right to exercise such voting and other consensual rights; and 

  

	 	(B)	 in order to permit the Collateral Agent to exercise the voting and other consensual rights which it may be entitled 

  

 16 

	 	 
to exercise pursuant hereto and to receive all dividends and other distributions which it may be entitled to receive hereunder: (1) each Grantor shall
promptly execute and deliver (or cause to be executed and delivered) to Collateral Agent all proxies, dividend payment orders and other instruments as necessary or as Collateral Agent (at the written direction of the Acting Secured Parties) may from
time to time reasonably request and (2) each Grantor acknowledges that Collateral Agent may utilize the power of attorney set forth in Section 6. 

  
 4.4 Chattel Paper, Instruments and Deposit Accounts 
  
 (a) Each Grantor shall deliver to the Collateral Agent all
Collateral consisting of Chattel Paper, promissory notes and Instruments (in each case, accompanied by stock powers, allonges or other instruments of transfer executed in blank, as applicable) promptly after such Grantor receives the same,
provided, however, that after the 90 day period described in Section 11.02 of the Indenture, each Grantor shall deliver all such Chattel Paper, promissory notes and Instruments (in each case, accompanied by stock powers, allonges or
other instruments of transfer executed in blank, as applicable) other than such of a de minimus value subsequent to the request of the Collateral Agent. 
  
 (b) Each Grantor shall use commercially reasonable efforts (which shall be deemed to not include any obligation to pay money to any third
party other than reasonable attorney’s fees and expenses of the third party or other de minimis payments) to obtain authenticated control agreements from each issuer of uncertificated Securities, securities intermediary, or commodities
intermediary issuing or holding any Financial Assets for the account of such Grantor. 
  
 (c) Each Grantor shall use commercially reasonable efforts (which shall include customary fees charged by third parties that act as
intermediaries but shall not be deemed to include any obligation to pay money to any third party other than reasonable attorney’s fees and expenses of the third party or other de minimis payments) to obtain a control agreement with each
bank or financial institution holding a Deposit Account for such Grantor, which agreement shall be in form and substance reasonably satisfactory to the Collateral Agent. 
  
 (d) Each Grantor shall take all commercially reasonable steps to grant the Collateral Agent control of all
material electronic chattel paper (other than any such Collateral of a de minimus value) in accordance with the UCC. 
  
 (e) Each Grantor hereby represents and warrants, on the date hereof, that Schedule 4.4(e) sets forth all Commercial Tort Claims
held by such Grantor against third parties. If requested by the Collateral Agent in writing, each Grantor shall identify any new Commercial Tort Claims held by it at such time and shall deliver a completed Security Agreement Supplement,
substantially in the form of Exhibit A attached hereto, together with a supplement to Schedule 4.4(e) identifying such new Commercial Tort Claims. 
  

 17 

 Upon the occurrence and during the continuance of an Event of Default, each Grantor shall not, without the Collateral
Agent’s prior written consent, grant any extension of the time of payment for any of the Accounts, compromise, compound or settle the same for less than the full amount thereof, release, wholly or partly, any Person liable for the payment
thereof or allow any credit or discount whosoever thereon, other than extensions, credit, discounts, compromises or settlements granted or made in the ordinary course of business and consistent with its current practices and in accordance with
prudent and standard practices used in the industry in which such Grantor is engaged. 
  

	5.	FURTHER ASSURANCES; ADDITIONAL GRANTORS. 

  
 5.1 Further Assurances 
  
 (a) Each Grantor agrees that from time to time, at the expense of such Grantor, it shall promptly execute and deliver all further
instruments and documents, and take all further action, that may be necessary or reasonably requested by Collateral Agent (such request to be given at the written request of the Acting Secured Parties) in order to create and/or maintain the
validity, perfection or priority of and protect or enforce any security interest granted or purported to be granted hereby or to enable Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral;
provided, however, that (i) so long as no Default or Event of Default shall have occurred and be continuing, such Grantor shall not be required to take any actions to perfect or protect the security interest granted hereunder or enable
the Collateral Agent to exercise and enforce its rights and remedies with respect to the Collateral other than as is expressly required pursuant to Sections 4.1, 4.2, 4.3 and 4.4 hereof and (ii) in no event shall such
Grantor be obligated to perfect security interests in fixtures or obtain consents, waivers, acknowledgment or access agreements from any landlord, bailee or other similar party. Without limiting the generality of the foregoing, each Grantor shall:

  

	 	(A)	at any reasonable time and upon reasonable notice by Collateral Agent, exhibit the Collateral to and allow inspection of the Collateral by Collateral Agent, or persons designated by
Collateral Agent; and 

  

	 	(B)	appear in and defend any action or proceeding that may affect Grantor’s title to or Collateral Agent’s security interest in all or any part of the Collateral.

  
 (b) Each Grantor hereby
authorizes Collateral Agent to file a Record or Records, including, without limitation, financing or continuation statements, and amendments thereto, in all jurisdictions and with all filing offices as are necessary or advisable to perfect the
security interest granted to Collateral Agent herein, and the Collateral Agent hereby authorizes each Grantor to make any such filings contemplated by this Section 5.1(b). Such financing statements may describe the Collateral in the same
manner as described herein or may contain an indication or description of collateral that describes such property in any other manner as is necessary, advisable or customary to ensure the perfection of the security interest in the Collateral granted
to Collateral Agent herein. Each Grantor shall, promptly upon request by Collateral Agent (such request to be given at the written request of the Acting Secured Parties), furnish to Collateral 

  

 18 

 
Agent statements and schedules further identifying and describing the Collateral, all in reasonable detail. 
  
 (c) Each Grantor hereby authorizes Collateral Agent to
modify this Agreement after obtaining such Grantor’s approval of or signature to such modification by amending Schedule 4.2 to include reference to any right, title or interest in any existing Intellectual Property or any Intellectual
Property acquired or developed by any Grantor after the execution hereof or to delete any reference to any right, title or interest in any Intellectual Property in which any Grantor no longer has or claims any right, title or interest; provided such
approval or signature of Grantor shall not be required so long as an Event of Default exists. 
  
 5.2 Additional Grantors. From time to time subsequent to the date hereof, additional Persons may become Additional Grantors, by executing a Joinder Agreement substantially in the form attached hereto as
Exhibit B. Upon delivery of any such Joinder Agreement to Collateral Agent, notice of which is hereby waived by Grantors, (a) each Additional Grantor shall be a Grantor and shall be as fully a party hereto as if such Additional Grantor were
an original signatory hereto and (b) the supplemental schedules thereto shall be incorporated into and become a part of and supplement the respective schedules to this Agreement; and each reference to such Schedules shall mean and be a reference to
such Schedules as supplemented pursuant to such Joinder Agreement. Each Grantor expressly agrees that its obligations arising hereunder shall not be affected or diminished by the addition or release of any other Grantor hereunder. This Agreement
shall be fully effective as to any Grantor that is or becomes a party hereto regardless of whether any other Person becomes or fails to become or ceases to be a Grantor hereunder. 
  

	6.	ATTORNEY-IN-FACT. 

  
 6.1 Power of Attorney. Each Grantor hereby irrevocably appoints Collateral Agent (such appointment being coupled with an interest) as such
Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor then in effect, from time to time in its discretion to take any action permitted under this Agreement and consistent with the
relevant provisions of the Indenture and to execute any instrument that it may deem reasonably necessary or advisable to accomplish the purposes of this Agreement and the Indenture, including, without limitation, the following: 
  
 (a) upon the occurrence and during the continuance of any
Event of Default, to obtain and adjust insurance required to be maintained by Grantors pursuant to the Secured Agreements; 
  
 (b) upon the occurrence and during the continuance of any Event of Default, to ask for, demand, collect, sue for, recover, compound,
receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral; 
  
 (c) upon the occurrence and during the continuance of any Event of Default, to receive, endorse and collect any drafts or other
instruments, documents and chattel paper in connection with clause (b) above, subject in all respects to the rights of any lender under the Credit Agreement to receive, endorse and collect the same; 
  

 19 

 (d) upon the occurrence and during the continuance of any Event of Default, to file any
claims or take any action or institute any proceedings necessary or desirable for the collection of any of the Collateral or otherwise to enforce the rights of Collateral Agent with respect to any of the Collateral; 
  
 (e) to prepare and file any UCC financing statements,
against such Grantor as debtor in accordance with this Agreement and the Indenture; 
  
 (f) to prepare, sign, and file for recordation in any intellectual property registry, appropriate evidence of the lien and security
interest granted herein in the Intellectual Property in the name of such Grantor as assignor; 
  
 (g) to take or cause to be taken all actions necessary to perform or comply or cause performance or compliance with the terms of this
Agreement, including, without limitation, access to pay or discharge taxes or Liens (other than Permitted Liens) levied or placed upon or threatened against the Collateral, the legality or validity thereof and the amounts necessary to discharge the
same, any such payments made by Collateral Agent to become obligations of such Grantor to Collateral Agent, due and payable immediately without demand; and 
  
 (h) upon the occurrence and during the continuance of any Event of Default and subject to the provisions of the UCC, generally to sell,
transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral as fully and completely as though Collateral Agent were the absolute owner thereof for all purposes, and to do, at Collateral Agent’s option and
such Grantor’s expense, at any time or from time to time, all acts and things necessary to protect, preserve or realize upon the Collateral and Collateral Agent’s security interest therein in order to effect the intent of this Agreement,
all as fully and effectively as such Grantor might do. 
  
 6.2
No Duty on the Part of Collateral Agent. The powers conferred on Collateral Agent hereunder are solely to protect the interests of Collateral Agent in the Collateral and shall not impose any duty upon Collateral Agent to exercise any such
powers. Collateral Agent shall be accountable only for amounts that it actually receives as a result of the exercise of such powers, and neither it nor any of its officers, directors, employees or agents shall be responsible to any Grantor for any
act or failure to act hereunder, except for their own gross negligence or willful misconduct. No provision of this Agreement shall require Collateral Agent to expend or risk its own funds or otherwise incur any financial liability in the performance
of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

  

	7.	REMEDIES. 

  
 7.1 Generally 
  
 (a) Upon the occurrence and during the continuation of any Event of Default, Collateral Agent may, subject to the requirements of the
Indenture and applicable law, including 

  

 20 

 
regulatory requirements, exercise any and all remedies and other rights provided under this Agreement and by applicable law, including, without limitation,
the following: 
  
 (A) require Grantors to, and
Grantors hereby agree that they shall at their expense and promptly upon request of Collateral Agent forthwith, assemble all or part of the Collateral as directed by Collateral Agent and make it available to Collateral Agent at a place to be
designated by Collateral Agent that is reasonably convenient to all parties; 
  
 (B) enter onto the property where any Collateral is located and take possession thereof with or without judicial process if such may be done without a breach of the peace; and 
  
 (C) prior to the disposition of the Collateral, store,
process, repair or recondition the Collateral or otherwise prepare the Collateral for disposition in any manner to the extent Collateral Agent may deem commercially reasonable. 
  
 (b) 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 or any other applicable laws and also may without notice, except as specified below, sell, lease, assign, grant an option or
options to purchase or otherwise dispose of the Collateral or any part thereof in one or more parcels at public or private sale, at any exchange, broker’s board or at any of Collateral Agent’s offices or elsewhere, for cash, on credit or
for future delivery, and upon such other terms as Collateral Agent may deem commercially reasonable. Each Grantor agrees that, to the extent notice of sale shall be required by law, at least ten days’ notice to the each 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. 
  
 (c) All amounts and proceeds (including checks and other
instruments) received by any Grantor in respect of amounts due to such Grantor in respect of the Collateral or any portion thereof following the occurrence and during the continuance of an Event of Default shall be received in trust for the benefit
of Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over or delivered to Collateral Agent in the same form as so received (with any necessary endorsement) to be held as cash Collateral and applied as
provided by Section 7.2 following the occurrence and during the continuance of an Event of Default. Upon demand from Collateral Agent, Grantors shall not adjust, settle or compromise the amount or payment of any such amount or release wholly
or partly any obligor with respect thereto or allow any credit or discount thereon. 
  
 (d) Each Grantor hereby expressly waives and covenants not to assert any appraisement, valuation, extension, redemption or similar laws,
now or at any time hereafter in 

  

 21 

 
force, which might delay, prevent or otherwise impede the performance or enforcement of this Agreement. 
  
 7.2 Application of Proceeds. Any cash held by Collateral Agent
as Collateral and all cash proceeds received by Collateral Agent in respect of any sale of, collection from or other realization upon all or any part of the Collateral shall be held by Collateral Agent as Collateral for, and then or at any time
thereafter applied (after the payment of any amounts payable to Collateral Agent pursuant to Section 11.2 hereof) in whole or in part by Collateral Agent for the benefit of the Secured Parties against the Secured Obligations in such order of
application as is required by the Indenture. Any surplus of such cash or cash proceeds held by Collateral Agent and remaining after payment of all of the Secured Obligations shall be paid over to the Grantors or to whomsoever may be lawfully
entitled to receive such surplus. 
  
 7.3 Investment
Property. Each Grantor acknowledges and agrees that Collateral Agent may elect, with respect to the offer or sale of any or all of the Collateral constituting Investment Property or Securities, to conduct such offer and sale in such a
manner as to avoid the need for registration or qualification of the Collateral or the offer and sale thereof under any federal or state securities laws and that Collateral Agent is authorized to comply with any limitation or restriction in
connection with such sale as counsel may advise Collateral Agent is necessary in order to avoid any violation of applicable law or avoid obtaining approval of the sale or of the purchaser by any Governmental Body, including, without limitation,
compliance with such procedures as may restrict the number of prospective bidders and purchasers, requiring that such prospective bidders and purchasers have certain qualifications, and restricting such prospective bidders and purchasers to Persons
who will represent and agree that they are purchasing for their own account for investment and not with a view to the distribution or resale of such Collateral. Each Grantor further acknowledges and agrees that any such transaction may be at prices
and on terms less favorable than those which may be obtained through a public sale and not subject to such restrictions and agrees that, notwithstanding the foregoing, Collateral Agent is under no obligation to conduct any such public sale and may
elect to impose any or all of the foregoing restrictions, or any other restrictions which may be necessary or desirable in order to avoid any such registration or qualification, at its sole discretion or with the consent or direction of the parties
entitled to give direction pursuant to the Indenture. 
  
 Notwithstanding the foregoing, each Grantor shall, upon the occurrence and during the continuance of any Event of Default, at the reasonable request of the Collateral Agent, for the benefit of the Collateral Agent, cause any registration,
qualification under or compliance with any Federal or state securities law or laws to be effected with respect to all or any part of the Collateral constituting Investment Property or Securities Collateral as soon as practicable and at the sole cost
and expense of the Grantors. Each Grantor will use its commercially reasonable efforts to cause such registration to be effected (and be kept effective) and will use its commercially reasonable efforts to cause such qualification and compliance to
be effected (and be kept effective) as may be so requested and as would permit or facilitate the sale and distribution of such Collateral constituting Investment Property or Securities Collateral including, without limitation, registration under the
Securities Act (or any similar statute then in effect), appropriate qualifications under applicable blue sky or other state securities laws and appropriate compliance with all other requirements of any Governmental Authority. Each Grantor shall use
its commercially reasonable efforts to cause the Collateral Agent to be kept 

  

 22 

 
advised in writing as to the progress of each such registration, qualification or compliance and as to the completion thereof, shall furnish to the
Collateral Agent such number of prospectuses, offering circulars or other documents incident thereto as the Collateral Agent from time to time may request, and shall indemnify and shall cause the issuer of the Collateral constituting Investment
Property or Securities Collateral to indemnify the Collateral Agent and all others participating in the distribution of such Securities Collateral against all claims, losses, damages and liabilities caused by any untrue statement (or alleged untrue
statement) of a material fact contained therein (or in any related registration statement, notification or the like) or by any omission (or alleged omission) to state therein (or in any related registration statement, notification or the like) a
material fact required to be stated therein or necessary to make the statements therein not misleading. 
  
 If the Collateral Agent determines to exercise its right to sell any or all of the Collateral constituting Investment Property or Securities Collateral,
upon written request, the applicable Grantor shall from time to time furnish to the Collateral Agent all such information as the Collateral Agent may request in order to determine the number of securities included in the Collateral constituting
Investment Property or Securities Collateral which may be sold by the Collateral Agent as exempt transactions under the Securities Act and the rules of the Securities and Exchange Commission thereunder, as the same are from time to time in effect

  
 7.4 Intellectual Property. 
  
 (a) Anything contained herein to the contrary
notwithstanding, upon the occurrence and during the continuation of an Event of Default, subject to the Indenture: 
  

	 	(A)	Collateral Agent shall have the right (but not the obligation) to bring suit or otherwise commence any action or proceeding in the name of any Grantor, Collateral Agent or
otherwise, in Collateral Agent’s sole discretion, to enforce any Intellectual Property which is material to such Grantor’s business, in which event such Grantor shall, at the request of Collateral Agent, do any and all lawful acts and
execute any and all documents required by Collateral Agent in aid of such enforcement and such Grantor shall promptly, upon demand, reimburse and indemnify Collateral Agent as provided in Section 10 hereof in connection with the exercise of
its rights under this Section, and, to the extent that Collateral Agent shall elect not to bring suit to enforce any Intellectual Property which is material to such Grantor’s business as provided in this Section, such Grantor agrees to use all
reasonable measures, whether by action, suit, proceeding or otherwise, to prevent the infringement of any such Intellectual Property by others and for that purpose agrees to diligently maintain any action, suit or proceeding against any Person so
infringing as shall be necessary to prevent such infringement; 

  

	 	(B)	 upon written demand from Collateral Agent, each Grantor shall grant, assign, convey or otherwise transfer to Collateral Agent all 

  

 23 

	 	 
of such Grantor’s right, title and interest in and to the Intellectual Property and shall execute and deliver to Collateral Agent such documents as are
necessary or appropriate to carry out the intent and purposes of this Agreement; 

  

	 	(C)	each Grantor agrees that such an assignment and/or recording shall be applied to reduce the Secured Obligations outstanding only to the extent that Collateral Agent receives cash
proceeds in respect of the sale of, or other realization upon, the Intellectual Property; and 

  

	 	(D)	Collateral Agent shall have the right to notify, or require each Grantor to notify, any obligors with respect to amounts due or to become due to such Grantor in respect of the
Intellectual Property, of the existence of the security interest created herein, to direct such obligors to make payment of all such amounts directly to Collateral Agent, and, upon such notification and at the expense of such Grantor, to enforce
collection of any such amounts and 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. 

  
 (b) If (i) an Event of Default shall have occurred and no longer be continuing, (ii) no other Event of
Default shall have occurred and be continuing, (iii) an assignment or other transfer to Collateral Agent of any rights, title and interests in and to the Intellectual Property shall have been previously made and shall have become absolute and
effective, and (iv) the Secured Obligations shall not have become immediately due and payable, upon the written request of any Grantor, Collateral Agent shall promptly execute and deliver to such Grantor, at such Grantor’s sole cost and
expense, such assignments or other transfers as may be necessary to reassign to such Grantor any such rights, title and interests as may have been assigned to Collateral Agent as aforesaid, subject to any disposition thereof that may have been made
by Collateral Agent; provided, after giving effect to such reassignment, Collateral Agent’s security interest granted pursuant hereto, as well as all other rights and remedies of Collateral Agent granted hereunder, shall continue to be
in full force and effect; and provided further, the rights, title and interests so reassigned shall be free and clear of any Liens granted by or on behalf of Collateral Agent. 
  
 (c) Solely for the purpose of enabling Collateral Agent to exercise rights and remedies under this
Section 7 and at such time as Collateral Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to Collateral Agent, to the extent it has the right to do so an irrevocable, nonexclusive license
(exercisable without payment of royalty or other compensation to such Grantor), subject, in the case of Trademarks, to sufficient rights to quality control and inspection in favor of such Grantor to avoid the risk of invalidation of said Trademarks,
to use, operate under, license, or sublicense any Intellectual Property now owned or hereafter acquired by such Grantor, and wherever the same may be located. 
  

 24 

 7.5 Licenses. 
  
 Notwithstanding anything to the contrary contained in this Agreement, the Secured Agreements or in any other agreement,
instrument or document executed by any Grantor in connection with the Secured Agreements, to the extent that any license is included in the Collateral, the Collateral Agent will not take any action pursuant to any document referred to above which
would constitute or result in any assignment of any license or any change of control (whether de jure or de facto) of any Grantor or subsidiary of any Grantor if such assignment of any license or change of control would require, under then existing
law, the prior approval of any Governmental Body issuing a license without first obtaining such prior approval of any Governmental Body issuing a license. Upon the occurrence of an Event of Default or at any time thereafter during the continuance
thereof, subject to terms and conditions of this Agreement, each Grantor agrees to take any action that Collateral Agent may reasonably request in order to obtain from such Governmental Body such approval as may be necessary to enable Collateral
Agent to exercise and enjoy the full rights and benefits granted to Collateral Agent by this Agreement and the other documents referred to above, including specifically, at the cost and expense of each Grantor, the use of its best efforts to assist
in obtaining approval of such Governmental Body for any action or transaction contemplated by this Agreement for which such approval is or shall be required by law, and specifically, without limitation, upon request, to prepare, sign and file with
such Governmental Body the assignor’s or transferor’s portion of any application or applications for consent to the assignment of license or transfer of control necessary or appropriate under the FCC’s rules and regulations for
approval of (i) any sale or other disposition of the Collateral by or on behalf of Collateral Agent, or (ii) any assumption by Collateral Agent of voting rights in the Collateral effected in accordance with the terms of this Agreement. It is
understood and agreed that all foreclosure and related actions will be made in accordance with the applicable laws, regulations and published policies and decisions. 
  

	8.	CONTINUING SECURITY INTEREST; TERMINATION AND RELEASE. 

  
 (a) This Agreement shall create a continuing security interest in the Collateral and shall (i) remain in full force and effect until the
payment in cash in full of all of the Secured Obligations, (ii) be binding upon the each Grantor, its successors and assigns and (iii) inure, together with the rights and remedies of Collateral Agent hereunder, to the benefit of Collateral Agent,
the Secured Parties and their respective successors, transferees and assigns. 
  
 (b) Subject to Section 314(d) of the Trust Indenture Act of 1939, notwithstanding anything to the contrary in this Section 8, (i) the security interests created under this Agreement shall terminate upon the
payment in cash in full of the Secured Obligations, and (ii) the security interests created under this Agreement with respect to any Collateral that is permitted to be released pursuant to the terms of the Indenture shall automatically be released
and, in each case, the Collateral Agent shall, at the request and expense of any Grantor (and, if requested by the Collateral Agent, upon the delivery of an officer’s certificate by the Company certifying that such release is permitted under
the Secured Agreements), cause to be assigned, transferred and delivered, against receipt but without recourse, warranty or representation whatsoever, all Collateral subject to such termination or release, as applicable, to or on the order of such
Grantor, and shall execute and deliver to such Grantor at Grantor’s expense such documents and instruments as such Grantor may reasonably request to evidence the release of such Collateral from the Lien of this Agreement, including, without
limitation, any UCC termination statements 

  

 25 

 
and any filings with the United States Patent and Trademark Office or the United States Copyright Office. 
  

	9.	STANDARD OF CARE; SECURED PARTY MAY PERFORM. 

  
 The powers conferred on Collateral Agent hereunder are solely to protect its interest in the Collateral and shall not impose any duty upon it to exercise
any such powers. Except for the exercise of reasonable care in the custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, Collateral Agent shall have no duty as to any Collateral or as to the
taking of any necessary steps to preserve rights against prior 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 Collateral in its
possession if such Collateral is accorded treatment substantially equal to that which Collateral Agent accords its own similar property. None of the Collateral Agent, any Secured Party or any of their respective directors, officers, employees or
agents shall be liable for failure to demand, collect or realize upon all or any part of the Collateral or for any delay in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any Grantor or
otherwise. If any Grantor fails to perform any agreement contained herein, Collateral Agent may itself perform, or cause performance of, such agreement, and the expenses of Collateral Agent incurred in connection therewith shall be payable by each
Grantor under Section 11.2 hereof. The Collateral Agent may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through agents or attorneys and the Trustee shall not be responsible for any
misconduct or negligence on the part of any agent or attorney appointed with due care by it hereunder. 
  

	10.	INDEMNITY. 

  
 (a) Each Grantor agrees to jointly and severally indemnify and hold harmless Collateral Agent and the Secured Parties, the respective
affiliates of Collateral Agent and the Secured Parties, and the respective officers, directors, employees, agents (including, without limitation each of their counsel), and controlling persons of Collateral Agent and the Secured Parties, and each
such affiliate (each, an “Indemnified Party”) from and against any and all claims, actions and suits whether groundless or otherwise, and from and against any and all liabilities, losses, damages and costs and expenses
(including, without limitation, the reasonable fees and disbursements of counsel and with respect to Collateral Agent, reasonably allocated costs and expenses of in-house counsel and legal staff) of every nature and character arising out of or in
connection with any actual or threatened claim, litigation, investigation or proceeding relating to this Agreement or the Secured Agreements or the transactions contemplated hereby or thereby (other than any such actions or expenses resulting, as
determined by a final order of a court of competent jurisdiction, from the gross negligence or willful misconduct of the Indemnified Party seeking indemnification hereunder), in each case including, without limitation, the reasonable fees and
disbursements of counsel and allocated costs of in-house counsel and legal staff incurred in connection with any such claim investigation, litigation or other proceeding whether or not such Indemnified Party is a party thereto, and each Grantor
agrees to reimburse each Indemnified Party, upon demand, for all out-of-pocket costs and expenses (including, without limitation, the reasonable fees and disbursements of counsel and with respect to Collateral Agent and the Secured Parties,
reasonably allocated costs and expenses of in-house counsel and legal staff) incurred in connection with any of the foregoing. In 

  

 26 

 
litigation, or the preparation therefor, Indemnified Parties shall each be entitled to select their own counsel and, in addition to the foregoing indemnity,
each Grantor agrees to pay promptly the reasonable fees and expenses of such counsel. If, and to the extent that the obligations of any Grantor under this Section 10 are unenforceable for any reason, such Grantor hereby agrees to make the maximum
contribution to the payment in satisfaction of such obligations which is permissible under applicable law. 
  
 (b) No Grantor shall make any claim against any Indemnified Party for any special, indirect or consequential damages in respect of any
breach or wrongful conduct (whether the claim therefor is based in contract, tort or duty imposed by law) in connection with, arising out of or in any way related to the transactions contemplated by, and the relationship established by the Secured
Agreements, or any act, omission or event occurring in connection therewith, and hereby waives, releases and agrees not to sue upon any such claim for any such damages, whether or not accrued and whether or not known or suspected to exist in such
Grantor’s favor. 
  
 (c) The covenants
contained in this Section 10 shall survive payment in cash or satisfaction in full of all other of the Secured Obligations. 
  

	11.	MISCELLANEOUS. 

  
 11.1 Notices. Unless otherwise specifically provided herein, any notice or other communication herein required or permitted to be given to a
Grantor or Collateral Agent shall be sent to such Person’s address as set forth in the Indenture. All such notices and other communications shall, when mailed or telecopied, be effective when deposited in the mails or transmitted by telecopier,
respectively. 
  
 11.2 Expenses. Each Grantor will
upon demand make payment to Collateral Agent of any and all reasonable out-of-pocket sums, costs and expenses, which Collateral Agent may pay or incur pursuant to the provisions of this Agreement or in perfecting, defending, protecting or enforcing
this Agreement or the security interests granted herein or in enforcing payment of all of the Secured Obligations or otherwise in connection with the provisions hereof, including, but not limited to court costs, reasonable collection charges,
reasonable travel expenses, and reasonable attorneys’ fees and expenses (including with respect to Collateral Agent, the reasonable allocated costs and expenses of in-house counsel and legal staff) all of which together with interest at the
highest rate then payable under the Indenture, shall be part of the Secured Obligations. The covenants in this Section 11.2 shall survive payment in cash or satisfaction in full of all other of the Secured Obligations. 
  
 11.3 Amendments and Waivers. Subject to the requirements of the
Indenture, any consent or approval required or permitted by this Agreement to be given by Collateral Agent may be given, and any term of this Agreement, may be amended, and the performance or observance by the Grantors of any terms of this
Agreement, or the continuance of any Default or Event of Default may be waived (either generally or in a particular instance and either retroactively or prospectively) with, but only with, the written consent of the Grantors and the written consent
of Collateral Agent. No waiver shall extend to or affect any obligation not expressly waived or impair any right consequent thereon. No course of dealing or delay or omission on the part of Collateral Agent or any Secured Party in exercising any
right shall 

  

 27 

 
operate as a waiver thereof or otherwise be prejudicial thereto. No notice to or demand upon the Grantors shall entitle the Grantors to other or further
notice or demand in similar or other circumstances. Upon the delivery of any Security Agreement Supplement, the supplemental schedules thereto shall be incorporated into and become a part of and supplement the respective schedules to this Agreement;
and each reference to such Schedules shall mean and be a reference to such Schedules as supplemented pursuant to such Security Agreement Supplement. 
  
 11.4 Successors and Assigns. This Agreement shall be binding upon the parties hereto and their respective successors and assigns including
all persons who become bound as Grantor to this Agreement. No Grantor shall, except as permitted under the Secured Agreements, assign any right, duty or obligation hereunder. 
  
 11.5 Independence of Covenants. All covenants hereunder shall be given independent effect so that if a
particular action or condition is not permitted by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an
Event of Default if such action is taken or condition exists. 
  
 11.6 Survival of Representations, Warranties and Agreements. All representations, warranties and agreements made herein shall survive the execution and delivery hereof. Notwithstanding anything herein or implied by law to the
contrary, the agreements of Grantors set forth in Sections 10 and 11.2 shall survive the payment of the Secured Obligations under the Indenture and the termination hereof. 
  
 11.7 No Waiver; Remedies Cumulative. No failure or delay on the part of Collateral Agent in the exercise of
any power, right or privilege hereunder or under any Secured Agreement shall impair such power, right or privilege or be construed to be a waiver of any default or acquiescence therein, nor shall any single or partial exercise of any such power,
right or privilege preclude other or further exercise thereof or of any other power, right or privilege. All rights, powers and remedies existing under this Agreement and the Secured Agreements are cumulative, and not exclusive of, any rights or
remedies otherwise available. Any forbearance or failure to exercise, and any delay in exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude
the further exercise of any such right, power or remedy. 
  
 11.8 Marshaling; Payments Set Aside. The Collateral Agent shall not be under any obligation to marshal any assets in favor of any Grantor or any other Person or against or in payment of any or all of the Secured Obligations.

  
 11.9 Severability. In case any provision in or
obligation hereunder shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any
way be affected or impaired thereby. 
  
 11.10
Headings. Section headings herein are included herein for convenience of reference only and shall not constitute a part hereof for any other purpose or be given any substantive effect. 
  

 28 

 11.11 Applicable Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS
OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAWS PRINCIPLES THEREOF OTHER THAN NEW YORK GENERAL OBLIGATIONS LAW SECTIONS 5-1401 AND 5-1402. 
  
 11.12 Consent To Jurisdiction. EACH GRANTOR AGREES THAT SERVICE OF PROCESS IN ANY PROCEEDING MAY BE EFFECTED BY MAILING A
COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE PREPAID, TO THE ISSUER AT ITS ADDRESS SET FORTH IN THE INDENTURE OR AT SUCH OTHER ADDRESS OF WHICH THE COLLATERAL AGENT OR TRUSTEE SHALL HAVE BEEN
NOTIFIED PURSUANT THERETO. IF ANY AGENT APPOINTED BY ANY GRANTOR REFUSES TO ACCEPT SERVICE, SUCH GRANTOR HEREBY AGREES THAT SERVICE UPON IT BY MAIL SHALL CONSTITUTE SUFFICIENT NOTICE. NOTHING HEREIN SHALL AFFECT THE RIGHT TO SERVE PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT OF THE TRUSTEE TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION. EACH GRANTOR AGREES THAT ANY SUIT FOR THE ENFORCEMENT OF THIS AGREEMENT MAY BE BROUGHT IN THE
COURTS OF THE STATE OF NEW YORK OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY SUCH SUIT BEING MADE UPON SUCH GRANTOR BY MAIL TO THE PROCESS AGENT AT THE ADDRESS
SPECIFIED ABOVE. EACH GRANTOR HEREBY WAIVES ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH SUIT OR ANY SUCH COURT OR THAT SUCH SUIT IS BROUGHT IN AN INCONVENIENT COURT. 
  
 11.13 Waiver Of Jury Trial. EACH GRANTOR HEREBY WAIVES ITS RIGHT TO A JURY
TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, OR ANY OF THE SECURED AGREEMENTS, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.

  
 11.14 Counterparts. This Agreement may be
executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original, but all such counterparts together shall constitute but one and the same instrument. 
  
 11.15 Effectiveness. This Agreement shall become effective upon
the execution of a counterpart hereof by each of the parties hereto and receipt by Collateral Agent of written or telephonic notification of such execution and authorization of delivery thereof. 
  
 11.16 Entire Agreement. This Agreement embodies the entire
agreement and understanding between Grantors and Collateral Agent and supersede all prior agreements and understandings between such parties relating to the subject matter hereof and thereof. There are no unwritten oral agreements between the
parties. 
  

 29 

 11.17 Trust Indenture Act Controls. If any provision of this Agreement limits, qualifies or
conflicts with the duties imposed by the Trust Indenture Act of 1939 as in effect on the date of this Agreement, the imposed duties shall control. 
  
 [Remainder of page intentionally left blank; signature page follows.] 
  

 30 

 IN WITNESS WHEREOF, Grantors and Collateral Agent have caused this Agreement to be duly executed
and delivered by their respective officers thereunto duly authorized as of the date first written above. 
  

			
	GRANDE COMMUNICATIONS HOLDINGS, INC., as Issuer and a Grantor
		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

	
	GRANDE COMMUNICATIONS HOUSTON, INC., as a Guarantor and a Grantor
		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

	
	GRANDE COMMUNICATIONS, INC., as a Guarantor and a Grantor
		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

	
	GRANDE COMMUNICATIONS NETWORKS, INC., as a Guarantor and a Grantor
		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

	
	 GRANDE COMMUNICATIONS
 CLEARSOURCE, INC., as
a Guarantor and a
 Grantor

		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

			
	DENTON TELECOM HOLDINGS I, LLC, as a Guarantor and a Grantor
		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

	
	DENTON TELECOM INVESTORS I, LLC, as a Guarantor and a Grantor
		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

	
	DENTON TELECOM PARTNERS I, LLP, as a Guarantor and a Grantor
		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

	
	 U.S. BANK NATIONAL ASSOCIATION,
 as
Collateral Agent

		
	 By:
	 	 
	 	 	

	 	 	 Name:

	 	 	 Title:

  

 SCHEDULE 4.1 
 TO SECURITY AGREEMENT 
  
 Financing Statement
Filing Offices: 
  

					
	 Name of Grantor

	  	 Filing Jurisdiction(s)

	  	 
	Grande Communications Holdings, Inc.	  	Delaware, Texas	  	 
			
	Grande Communications, Inc.	  	Delaware, Texas	  	 
			
	Grande Communications Networks, Inc.	  	Delaware, Texas	  	 
			
	Grande Communications ClearSource, Inc.	  	Delaware, Texas	  	 
			
	Grande Communications Houston, Inc.	  	Delaware, Texas	  	 
			
	Denton Telecom Investors I, L.L.C.	  	Delaware, Texas	  	 
			
	Denton Telecom Holdingss I, L.L.C.	  	Delaware, Texas	  	 
			
	Denton Telecom Partners I, L.P.	  	Delaware, Texas	  	 

  

 SCHEDULE 4.2 
 TO SECURITY AGREEMENT 
  
 INTELLECTUAL PROPERTY 
  
 Patents, Patent
Licenses, Trademarks & Trademark Licenses 
  

							
	 MARK

	  	SERIAL NO./
FILE DATE

	  	 REG. NO./
 REG. DATE

	  	 STATUS

	 CHECK-IN NUMBER - U.S.
 4024-00600
 (Service mark)
	  	75/136,416
July 19, 1996	  	2,247,992
May 25,
1999	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 Design (Golden Harbor)- U.S.
 4024-00900
 (Service mark)
	  	75/555,258
September 18,
1998	  	2,292,637
November
16, 1999	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 GOLDEN HARBOR - U.S.
 4024-00800
 (Service mark)
	  	75/300,830
May 30, 1997	  	2,241,187
April 20,
1999	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 GREAT LAKES LONG DISTANCE, INC. and Design - U.S.
 4024-01300
 (Service mark)
	  	74/464,774
December 2,
1993	  	1,865,994
December 6,
1994	  	 Registered
 Section 8 &15 accepted and
acknowledged

	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 

  

							
	 MARK

	  	SERIAL NO./
FILE DATE

	  	 REG. NO./
 REG. DATE

	  	 STATUS

	 HOMELINE – U.S.
 (Service Mark)
	  	78/365,359
February 10,
2004	  	—  	  	Pending
	 Applicant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 HOMETOWN TELEPHONE - U.S.
 (Service Mark)
	  	75/150,441
August 14,
1996	  	2,189,779
September
15, 1998	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 THINK OF OUR BUSINESS AS AN EXTENSION OF YOURS - U.S.
 4024-01200
 (Service mark)
	  	75/853,230
November 19,
1999	  	2,383,456
September 5,
2000	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 THRIFTY CALL and Design - U.S.
 4024-01000
 (Service mark)
	  	74/472,627
December 23,
1993	  	1,876,925
January 31,
1995	  	 Registered
 Section 8 &15 accepted and
acknowledged

				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 THRIFTYCALL - U.S.
 4024-01100
 (Service mark)
	  	75/830,820
October 25,
1999	  	2,375,484
August 8,
2000	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 G GRANDE COMMUNICATIONS FOR YOU, THE WORLD. (Stylized)
	  	76/137,410
September 29,
2000	  	2,779,978
November 4,
2003	  	Registered
	 Registrant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 

  

							
	 MARK

	  	SERIAL NO./
FILE DATE

	  	 REG. NO./
 REG. DATE

	  	 STATUS

	 G GRANDE COMMUNICATIONS (Stylized)
	  	76/107,840
August 14, 2000	  	2,632,755
October 8, 2002	  	Registered
	 Registrant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 GRANDE COMMUNICATIONS
	  	76/016,782
April 4, 2000	  	2,514,442
December 4,
2001	  	Registered
	 Registrant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 G GRANDE COMMUNICATIONS (Stylized)
	  	76/016,781
April 4, 2000	  	2,782,267
November 11,
2003	  	Registered
	 Registrant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 G GRANDE COMMUNICATIONS VISUAL VOICE VELOCITY (Stylized)
	  	76/016,718
April 4, 2000	  	2,782,266
November 11,
2003	  	Registered
	 Registrant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 

  

							
	 MARK

	  	SERIAL NO./FILE
DATE

	  	 REG. NO./
 REG. DATE

	  	 STATUS

	 CLEARSOURCE
  
 Registrant:
 Clear Source, Inc.
 Delaware Corp
	  	75/529,943
September 20, 1998	  	2,428,738
February 13,
2001	  	Registered

  

 Copyrights & Copyright Licenses 
  
 There are no registered copyrights. 
  
 All written materials developed by employees of the [companies] within the scope of their
employment or that have been assigned to the [companies] are protected by copyright, although not registered. 
  
 Except for registered copyrights, security interests in intellectual property are perfected by the filing of a UCC-1 at the state level, not by filing at the Copyright Office or at the Patent and Trademark Office. One
files at the PTO mainly for notice reasons and because the law has not been entirely clear on perfection as it relates to IP collateral. Thus the attached, which relates to trademarks, will not effect perfection against the trademarks, only the
UCC-1 filing will perfect. 
  

 Patents and Trademarks Registered with the Untied States Patent and Trademark Office

  

							
	 MARK

	  	SERIAL NO./
FILE DATE

	  	REG. NO./
REG. DATE

	  	 STATUS

	 CHECK-IN NUMBER - U.S
 4024-00600
 (Service mark)
	  	75/136,416
July 19, 1996	  	2,247,992
May 25, 1999	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 Design (Golden Harbor) - U.S
 4024-00900
 (Service mark)
	  	75/555,258
September 18,
1998	  	2,292,637
November 16,
1999	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 GOLDEN HARBOR - U.S
 4024-00800
 (Service mark)
	  	75/300,830
May 30, 1997	  	2,241,187
April 20,
1999	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 GREAT LAKES LONG DISTANCE, INC. and Design - U.S
 4024-01300
 (Service mark)
	  	74/464,774
December 2,
1993	  	1,865,994
December 6,
1994	  	 Registered
 Section 8 &15 accepted and
acknowledged

	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 HOMELINE – U.S.
 (Service Mark)
  
 Applicant:
 Grande Communications, Inc.
 Delaware Corp
	  	78/365,359
February 10,
2004	  	—  	  	Pending

  

							
	 MARK

	  	SERIAL NO./
FILE DATE

	  	REG. NO./
REG. DATE

	  	STATUS

	 HOMETOWN TELEPHONE - U.S.
 (Service Mark)
	  	75/150,441
August 14,
1996	  	2,189,779
September 15,
1998	  	Registered
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 THINK OF OUR BUSINESS AS AN EXTENSION OF YOURS – U.S
 4024-01200
 (Service mark)
	  	75/853,230
November 19,
1999	  	2,383,456
September 5,
2000	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 THRIFTY CALL and Design - U.S
 4024-01000
 (Service mark)
	  	74/472,627
December 23,
1993	  	1,876,925
January 31,
1995	  	Registered
Section 8 &15
accepted and
acknowledged
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 THRIFTYCALL - U.S
 4024-01100
 (Service mark)
	  	75/830,820
October 25,
1999	  	2,375,484
August 8,
2000	  	Registered
				
	 Registrant:
 Grande Communications Networks, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 G GRANDE COMMUNICATIONS FOR YOU, THE WORLD. (Stylized)
	  	76/137,410
September 29,
2000	  	2,779,978
November 4,
2003	  	Registered
	 Registrant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 G GRANDE COMMUNICATIONS (Stylized)
	  	76/107,840
August 14,
2000	  	2,632,755
October 8,
2002	  	Registered
	 Registrant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 

  

							
	 MARK

	  	 SERIAL NO./
 FILE DATE

	  	REG. NO./
REG. DATE

	  	STATUS

	 GRANDE COMMUNICATIONS
	  	76/016,782
April 4,
2000	  	2,514,442
December 4,
2001	  	Registered
	 Registrant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 G GRANDE COMMUNICATIONS (Stylized)
	  	76/016,781
April 4,
2000	  	2,782,267
November 11,
2003	  	Registered
	 Registrant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 
	 G GRANDE COMMUNICATIONS VISUAL VOICE VELOCITY (Stylized)
	  	76/016,718
April 4,
2000	  	2,782,266
November 11,
2003	  	Registered
	 Registrant:
 Grande Communications, Inc.
 Delaware Corp
	  	 	  	 	  	 

  

							
	 MARK

	  	SERIAL NO./
FILE DATE

	  	 REG. NO./
 REG. DATE

	  	STATUS

	 CLEARSOURCE
  
  
 Registrant:
 Clear Source, Inc.
 Delaware Corp
	  	75/529,943
September 20,
1998	  	2,428,738
February 13,
2001	  	Registered

  

 SCHEDULE 4.3 
 TO SECURITY AGREEMENT 
  
 INVESTMENT PROPERTY 
  
 Pledged Stock: 
  

																
	 Grantor

	  	 Stock Company

	  	 Class of Stock

	  	Certificated
(Y/N)

	  	Stock
Certificate
No.

	  	Par
Value

	  	No. of
Shares of
Pledged
Stock

	  	% of
Outstanding
Stock or
Equity
Interest

	 Grande Communications Holdings, Inc.
	  	Grande Communications, Inc.	  	Common	  	Y	  	15	  	$	.001	  	1,000	  	100
	 .
	  	Grande Communications Networks, Inc	  	Common	  	Y	  	2	  	$	.01	  	1,000	  	100
	 	  	Grande Communications ClearSource, Inc.	  	Common	  	Y	  	1	  	$	.001	  	1,000	  	100
	 	  	Grande Communications Houston, Inc.	  	Common	  	Y	  	2	  	$	.001	  	1,000	  	100
	 Grande Communications, Inc
	  	Denton Telecom Investors I, L.L.C.	  	 	  	N	  	 	  	 	 	  	 	  	100
	 	  	Denton Telecom Holdings I, L.L.C.	  	 	  	N	  	 	  	 	 	  	 	  	100
	 Denton Telecom Holdings I, L.L.C.
	  	Denton Telecom Partners I, L.P.	  	 	  	N	  	 	  	 	 	  	 	  	0.5
	 Denton Telecom Investors I, L.L.C.
	  	Denton Telecom Partners I, L.P.	  	 	  	N	  	 	  	 	 	  	 	  	99.5

  
 Pledged Debt: 
  
 NONE 

 SCHEDULE 4.4(e) 
 TO SECURITY AGREEMENT 
  
 COMMERCIAL TORT CLAIMS 
  
 None 

 EXHIBIT A 
 TO SECURITY AGREEMENT 
  
 FORM
OF SECURITY AGREEMENT SUPPLEMENT 
  
 This SECURITY
AGREEMENT SUPPLEMENT, dated [mm/dd/yy] (the “Supplement”), is delivered pursuant to the Pledge and Security Agreement, dated as of March 23, 2004 (as it may be from time to time amended, restated, modified or
supplemented, the “Security Agreement”), among GRANDE COMMUNICATIONS HOLDINGS, INC, a Delaware Corporation, certain of its Subsidiaries party thereto and U.S. Bank National Association, as Collateral Agent. Capitalized terms
used herein not otherwise defined herein shall have the meanings ascribed thereto in the Security Agreement. This Supplement is being delivered pursuant to the Security Agreement. 
  
 Grantor hereby confirms, as of the date first written above, the grant to Collateral Agent set forth in the Security
Agreement of, does hereby grant to Collateral Agent, for the benefit of itself and the Secured Parties, a security interest in all of Grantor’s right, title and interest in and to all Collateral to secure the Secured Obligations, in each case
whether now or hereafter existing or in which Grantor now has or hereafter acquires an interest and wherever the same may be located and hereby agrees, as of the date first above written, to continue to be bound as a Grantor by all of the terms and
provisions of the Security Agreement, as supplemented by this Security Agreement Supplement. Grantor hereby represents and warrants that the attached Supplements to Schedules accurately and completely set forth all additional information with
respect to the Grantor currently required pursuant to the Security Agreement and hereby agrees that such Supplements to Schedules shall constitute part of the Schedules to the Security Agreement. 
  
 IN WITNESS WHEREOF, Grantor has caused this Security Agreement
Supplement to be duly executed and delivered by its duly authorized officer as of [mm/dd/yy]. 
  

			
	[NAME OF GRANTOR]
		
	By:	 	 
	 	 	

	 	 	 Name:
 Title:

 SUPPLEMENT TO SCHEDULE 4.1 
 TO SECURITY AGREEMENT 
  
 Additional Information:

  
 Financing Statements: 
  

			
	 Name of Grantor

	 	 Filing Jurisdiction(s)

 SUPPLEMENT TO SCHEDULE 4.2 
 TO SECURITY AGREEMENT 
  
 Additional Information:

  
 (A) Copyrights: 
  
 (B) Patents: 
  
 (C) Trademarks: 

 SUPPLEMENT TO SCHEDULE 4.3 
 TO SECURITY AGREEMENT 
  
 INVESTMENT PROPERTY 

 SUPPLEMENT TO SCHEDULE 4.4 
 TO SECURITY AGREEMENT 
  
 COMMERCIAL TORT CLAIMS 

 EXHIBIT B 
 TO SECURITY AGREEMENT 
  
 FORM
OF JOINDER AGREEMENT 
  
 This JOINDER AGREEMENT, dated
[mm/dd/yy], is delivered pursuant to the Security Agreement, dated as of March 23, 2004 (as it may be from time to time amended, restated, modified or supplemented, the “Security Agreement”), among GRANDE
COMMUNICATIONS HOLDINGS, INC, a Delaware Corporation, certain of its Subsidiaries party thereto and U.S. Bank National Association, as Collateral Agent. Capitalized terms used herein not otherwise defined herein shall have the meanings ascribed
thereto 
  
 Section 1. Grant of Security Interest. The
undersigned hereby grants to Collateral Agent for the benefit of itself and the Secured Parties, a security interest and continuing lien on all of its right, title and interest in, to and under all personal property of the undersigned that may be
perfected by the filing of UCC financing statements in the appropriate jurisdictions, including without limitation, the property and assets of the undersigned set forth on the attached supplemental schedules to the Schedules to the Security
Agreement, in each case whether now owned or existing or hereafter acquired or arising and wherever located (the undersigned’s “Collateral”), subject to the same limited exclusions set forth in the Security Agreement.

  
 Section 2. Security For Obligations. The grant of
security interest and continuing lien under this Joinder Agreement secures, and the Collateral is collateral security for, the prompt and complete payment or performance in full when due, whether at stated maturity, by required prepayment,
declaration, acceleration, demand or otherwise (including the payment of amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision
thereof)), of all obligations of Grantor hereunder and under the Secured Agreements to which Grantor is a party, and for all Secured Obligations. 
  
 Section 3. Supplements to Security Agreement Schedules. The undersigned has attached hereto supplemental Schedules 4.1, 4.2,
4.3, and 4.4(e) to Schedules 4.1, 4.2, 4.3, and 4.4(e) respectively, to the Security Agreement, and the undersigned hereby certifies, as of the date first above written, that such supplemental schedules have
been prepared by the undersigned in substantially the form of the equivalent Schedules to the Security Agreement and are complete and correct in all material respects. 
  
 Section 4. Representations and Warrants and Covenants. As of the date hereof, the undersigned hereby makes each
representation and warranty and covenant set forth in Section 4 of the Security Agreement (as supplemented by the attached supplemental schedules) to the same extent as each other Grantor. 
  
 Section 5. Obligations Under the Security Agreement. The undersigned
hereby agrees, as of the date first above written, to be bound as a Grantor by all of the terms and provisions of the Security Agreement to the same extent as Grantor. The undersigned further 

 
agrees, as of the date first above written, that each reference in the Security Agreement to an “Additional Grantor” or a “Grantor” shall
also mean and be a reference to the undersigned. 
  
 The terms of
Sections 11.11, 11.12, 11.13 and 11.14 of the Security Agreement are hereby incorporated by reference. 

 IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and
delivered by its duly authorized officer as of [mm/dd/yy]. 
  

			
	[NAME OF ADDITIONAL GRANTOR]
		
	By:	 	 
	 	 	

	 	 	 Name:
 Title:

 SUPPLEMENT TO SCHEDULE 4.1 
 TO SECURITY AGREEMENT 
  
 Additional Information:

  
 Financing Statements Filing Offices: 
  

			
	 Name of Grantor

	 	 Filing Jurisdiction(s)

 SUPPLEMENT TO SCHEDULE 4.2 
 TO SECURITY AGREEMENT 
  
 Additional Information:

  
 (A) Copyrights 
  
 (B) Patents 
  
 (C) Trademarks 

 SUPPLEMENT TO SCHEDULE 4.3 
 TO SECURITY AGREEMENT 
  
 Additional Information:

  
 Pledged Stock: 
  
 Pledged Partnership Interests: 
  
 Pledged LLC Interests: 
  
 Pledged Debt: 

 SUPPLEMENT TO SCHEDULE 4.4(e) 
 TO SECURITY AGREEMENT 
  
 COMMERCIAL TORT CLAIMS

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