Document:

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                                                                   EXHIBIT 10.25
           --------------------------------------------------------
           AMENDED AND RESTATED SYSTEM EQUIPMENT PURCHASE AGREEMENT
           --------------------------------------------------------

                This Amended and Restated System Equipment Purchase Agreement
is made and entered into as of June 30, 2000, by and between Cricket
Communications, Inc. a Delaware corporation (the "Owner"), and Lucent
                                                  -----
Technologies Inc., a Delaware corporation (the "Vendor").
                                                ------

                                   RECITALS:
                                   --------

                A. WHEREAS, the Owner desires to purchase PCS systems and
related items and services pursuant to this Contract; and

                B. WHEREAS, the Vendor desires to provide such PCS systems and
related items and services to the Owner, as described in Exhibit A, including,
but not limited to, the Vendor's obligation to manufacture, engineer, equip,
integrate, install, test and provide technical assistance for said PCS systems
in accordance with the terms and conditions set forth herein;

                C. WHEREAS, the mutual goal of the parties hereto is to build
PCS systems that are capable of integrating new technologies while reducing
costs over time in a highly competitive marketplace; and

                D. WHEREAS the original Contract was entered into on September
20, 1999 (the "Effective Date") and amended by Amendment No. 1 dated December
20, 1999, the parties wish to further amend and restate this Agreement on the
terms and conditions contained herein.

                NOW, THEREFORE, in consideration of the mutual promises and
covenants set forth in this Contract, the Owner and the Vendor hereby agree as
follows:

                SECTION 1. DEFINITIONS

                1.1  Definitions. In addition to the terms listed below, certain
                     -----------
additional terms are defined elsewhere in this System Equipment Purchase
Agreement and in the Exhibits, and all definitions are subject to the provisions
of subsection 1.2 hereof. As used in this Contract, the following terms have the
following meanings:

                "Annual Release Maintenance Fee" means, with respect to each
                 ------------------------------
System, those recurring annual fees of the Vendor, calculated in accordance with
Exhibit B-5 and invoiced annually on the anniversary of the earlier to occur of
(i) Substantial Completion or (ii) the date such System is placed in Commercial
Service, full payment of which entitles Owner to receive all Initial Software
Features, together with all other base generic software features in standard
software releases, Software Maintenance Releases, Software Enhancements,
Software Maintenance Releases and Software Upgrades

[*] CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS
DOCUMENT PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

                                       1
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applicable to CDMA PCS Products which will be made available to Owner when made
generally available by Vendor during the period for which the fees were paid.

                "Agency Plan" means the plan documenting the processes,
                 -----------
relationships and the responsibilities of the Owner, Vendor and Agency
Subcontractor wherein Owner contracts with the Agency Subcontractor under such
plan to perform work for, and supply materials to, the Owner, at rates
negotiated by Vendor with Agency Subcontractor on a national account basis for
the benefit of Owner. The Agency Plan is described in Exhibit E-1 to this
Contract and there shall be at all times during the term of this Contract at
least one Agency Subcontractor.

                "Agency Subcontractor" means Sprint North Supply Company, or any
                 --------------------
other vendor, contractor, supplier, licensor or other Person, as mutually agreed
to between Owner and Vendor.

                "Applicable Laws" means, as to any Person, the certificate of
                 ---------------
incorporation and by-laws or other organizational or governing documents of such
Person, all U.S. or foreign laws, treaties, ordinances, judgments, decrees,
injunctions, writs, orders and stipulations of any court, arbitrator or
governmental agency or authority and statutes, rules, regulations, orders and
interpretations thereof of any federal, state, provincial, county, municipal,
regional, environmental or other Governmental Entity, instrumentality, agency,
authority, court or other body (i) applicable to or binding upon such Person or
any of its property or to which such Person or any of its property is subject or
(ii) having jurisdiction over all or any part of a System or the Work to be
performed pursuant to the terms of this Contract.

                "Applicable Permits" means any waiver, exemption, zoning,
                 ------------------
building, variance, franchise, permit, authorization, approval, license or
similar order of or from any country, federal, state, provincial, county,
municipal, regional, environmental or other Governmental Entity,
instrumentality, agency, authority, court or other body having jurisdiction over
all or any part of a System or the Work to be performed pursuant to the terms of
this Contract.

                "Architectural and Engineering Services" or "A&E" means the Work
                 --------------------------------------      ---
to be performed by the Vendor or the Subcontractor, and certain obligations of
the Owner, as described in Exhibit E-4.

                "B Exhibits" is defined in subsection 2.4.
                 ----------

                "Backwards Compatible" or "Backwards Compatibility" means (i)
                 --------------------      -----------------------
with respect to new Software Maintenance Releases, Software Upgrades, Software
Combined Releases and Software Enhancements, the ability of each of the two
prior older versions of Software to remain fully functional in accordance with
and up to the performance levels to which each was performing immediately prior
to the integration with the new Software Maintenance Release, Software Upgrade,
Software Combined Releases and/or Software Enhancement, and the ability of such
new Software Maintenance Release,

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Software Upgrade, Software Combined Release and/or Software Enhancement to
interoperate and be compatible with all such functionality of such prior
Software versions and with all existing in-service Vendor provided Products
already installed in the System; (ii) with respect to all Equipment Upgrades,
and Equipment Combined Releases to the extent of that portion of the Equipment
Combined Release which is the Equipment Upgrade or the use of which by Owner is
not optional without losing the benefit of the Equipment Upgrade (for purposes
of this Contract, a "New Equipment Release" means collectively the Equipment
Upgrade and such non-optional portion of the Equipment Combined Release), the
ability of the existing infrastructure to remain fully functional in accordance
with and up to the performance levels to which it was performing immediately
prior to the integration with the New Equipment Release, and the ability of the
New Equipment Release to interoperate and be fully compatible with all such
functionality of such existing infrastructure and (iii) with respect to each of
Software Maintenance Releases, Software Upgrades, Software Combined Releases,
Software Enhancements and New Equipment Releases, the ability of such Products
to comply with the existing interfaces to other third party equipment already
deployed in the System and with respect to which Vendor is already in compliance
prior to the introduction of the Software Maintenance Releases, Software
Upgrades, Software Combined Releases, Software Enhancements and New Equipment
Releases.

                "Base Station ("BTS")" means the radio Products that handle the
                 --------------------
Owner's PCS radio traffic in a designated cell. The Base Station includes all
amplification, modulation, synchronization and other circuitry required to
process a radio signal.

                "Base Station Controller ("BSC")" means the radio Products that
                 -------------------------------
control the Owner's PCS radio traffic.

                "beta testing" means pre-launch testing conducted by Owner in
                 ------------
respect of which no payment from customers is made to the Owner for the services
provided in connection therewith.

                "Business Day" means any day of the year other than a Saturday,
                 ------------
Sunday or a United States Federal holiday.

                "Capacity Guarantee" is defined in Section 16.3.
                  ------------------

                "Certificate of Final Acceptance" is defined in subsection
                  -------------------------------
10.1(f).

                "Certificate of Substantial Completion" is defined in subsection
                 -------------------------------------
 10.1(d).

                "Change Orders" is defined in subsection 11.1.
                 -------------

                "Chattanooga Replacement" is defined in subsection 2.2.
                 -----------------------

                "Claim" is defined in subsection 15.2.
                 -----

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                "Claim Notice" is defined in subsection 15.2.
                 ------------

                "Commercial Service" means, with respect to a System, the
                 ------------------
commercial operation of a System, exclusive of operation for purposes of
determining compliance with this Contract or beta testing, whether or not
revenue is actually being generated.

                "Commercial Service Launch Date" means, with respect to a
                 ------------------------------
System, the date stated on Exhibit S, but in no event prior to the activation of
[*] of the planned number of cell sites stated for such System on Exhibit S,
unless otherwise agreed by the parties.

                "Construction Services" means the physical construction of the
                 ---------------------
cell Sites, MSC Sites and other related System Sites, for which work shall be
done by the Owner, Owner Subcontractor, Vendor, Subcontractor(s) or Agency
Subcontractor(s), as designated by Owner.

                "Construction Management Services", "Construction Management"
                 --------------------------------    -----------------------
means the Work to be performed by the Owner, Owner Subcontractor, Vendor, Agency
Subcontractor or Subcontractor, and certain obligations of the Owner, as
described in Exhibit E-2.

                "Contract" means this System Equipment Purchase Agreement,
                 --------
together with all Exhibits, Schedules, Specifications and all amendments,
modifications and supplements thereto.

                "Contract Term" means the period commencing on the Effective
                 -------------
Date of the original Contract, September 20, 1999, and ending five (5) years
there from, unless terminated earlier in accordance with the terms and
conditions hereof, or unless extended by the mutual written consent of the
parties hereto.

                "Core System" means that collection or aggregation of Products
                 -----------
which are designed by Vendor to operate as a functional entity in accordance
with the applicable Specifications or otherwise represented by Vendor in its
published information as being capable of operating as a functional entity. By
way of example and not limitation, a circuit pack or connecting cable which is
an OEM item, and which forms part of the 5 ESS(R) switch would form part of a
Core System, whereas a call center system or voice mail system, though it
interfaces with the System, would not be part of a Core System, since various
call center systems or voice mail systems manufactured by several alternate
manufacturers could be utilized by Owner, and operated functionally independent
of the selection of Vendor's Equipment for the MSC.

               "Covered PoP" means, with respect to a System, the population
                 -----------
contained within the footprint of the System at the time of Commercial Service
launch. Covered PoPs shall be calculated using a mutually agreed RF design tool
(i.e., CE4, Planet) using mutually agreed block level 1990 US Census based
population databases, or the most recent US

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

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census database available in the public domain at the time of the Commercial
Service Launch Date.  For purposes of the covered PoPs calculation, the Rural
In-Vehicle link budget threshold (144.8 dB path loss) shall define the coverage
area of the System.  Specifically, for all areas within the System with a path
loss less than 144.8 dB, that area shall be multiplied by the population density
in that area to derive the effective system covered PoPs.

Owner and Vendor shall have the right to independently calculate Covered PoPs to
ensure consistency in the reported Covered PoPs.  In the event the calculations
differ by more than two percent (2%), and both calculations are reasonably and
correctly completed in accordance with this definition, both parties will work
together to identify differences in calculation methodologies and results.  If
the calculations differ by less than two percent (2%), the agreed Covered PoPs
within a System shall be the mathematical average of the reasonable and correct
calculations of Owner and Vendor.

                "Customer Price Guide" means the Vendor's published price
                 --------------------
notification release or releases furnished for the purpose of communicating to
customers the Vendor's list pricing or pricing related items applicable to
Products.

                "Customer Technical Support Organization Services", "Customer
                 ------------------------------------------------    --------
Technical Support Services", "CTSO", "CTSS" means when used in relation to
--------------------------    ----    ----
warranty or non-warranty support services, the Work to be provided by Vendor,
and certain obligations of the Owner, as described in Exhibit N and B-5.

                "Defects and Deficiencies", "Defects or Deficiencies" or
                 ------------------------    -----------------------
"Defective" means any one or a combination of the following items or other
 ---------
items of a substantially similar nature:

                (a) when used with respect to the performance of Services, that
     such Services are not provided in a careful and workmanlike manner and in
     accordance with the Specifications, using material which is free from
     defects;

                (b) when used with respect to structures, materials or Products,
     that such items (i) are not new and of good quality and free from defects
     in materials and workmanship, or (ii) do not conform to the Specifications,
     or (iii) with respect to Software, that such Software does not process
     dates correctly; or

                (c) with respect to all other Work, that the same (i) are not
     free of defects in workmanship and materials, or (ii) do not conform to the
     Specifications.

                "Discontinued Products" is defined in subsection 12.1.
                 ---------------------

                "Documentation" means the Operating Manuals, the Maintenance and
                 -------------
Instruction Manuals, the Training Manuals, the "as-built" Site parameters and
all other documentation necessary for the operation of the System, the
Chattanooga Replacement, any Expansions and/or any material part thereof.

                                       5
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                "Dollars" or "U.S. $" or "$" means the lawful currency of the
                 -------      ------      -
United States of America.

                "Equipment" means all equipment, hardware and other items of
                 ---------
personal property (including, without limitation, any Documentation furnished
hereunder in respect thereof) which are required to be furnished by the Vendor
in accordance with the terms and conditions of this Contract, including repair
and replacement parts.

                "Equipment Combined Release" is defined in subsection 14.2.1.
                 --------------------------

                "Equipment Enhancements" means modifications or improvements
                 ----------------------
made to the Equipment which improve the performance or capacity of such
Equipment (sometimes referred to by the Vendor as its "Class B" changes).

                "Equipment Upgrade" means a change or modification in any
                 -----------------
 delivered Equipment which fixes or otherwise corrects faults, design
 shortcomings or shortcomings in meeting the Specifications, required to correct
 defects of a type that result in inoperative conditions, unsatisfactory
 operating conditions, or which is recommended to enhance safety (sometimes
 referred to by the Vendor as its "Class A" changes).

                "Expansions" means any additional Products ordered by the Owner
                 ----------
from the Vendor, which may include growth to existing Systems and additional
Products, Services and Systems.

                "FCC" means the Federal Communications Commission.
                 ---

                "Final Acceptance" means, with respect to any System, the date
                 ----------------
the Owner signs the Certificate of Final Acceptance.

                "Fit" means physical size or mounting arrangement (for example,
                 ---
electrical or mechanical connections).

                "Fixed Network Design Services" means the Work to be provided by
                 -----------------------------
Owner, Owner Subcontractor, Vendor or Subcontractor, and certain obligations of
the Owner, as described in Exhibit E-8.

                "Force Majeure" is defined in Section 17.
                 -------------

                "Form" means physical shape.
                 ----

                "Function" means Product features and performance, or with
                 --------
 respect to other items, the features and performance of such items.

                "Funds" is defined in subsection 2.10.
                 -----

                                       6
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                "Governmental Entity" means the United States federal government
                 -------------------
or any state or other political subdivision thereof and any entity
exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government.

                "Guaranteed Substantial Completion Date" means, a) with respect
                 --------------------------------------
to the Chattanooga and Nashville System and all other Systems not listed on
Exhibit S, the date by which Substantial Completion must be achieved by the
Vendor. The Guaranteed Substantial Completion Date is determined based on the
Site that is identified by the Owner in writing to be the last Site to be
included in the definition of such System (the "Last Site"). If the Owner has
issued a Purchase Order to the Vendor to proceed with Site Preparation with
respect to the Last Site, the Guaranteed Substantial Completion Date shall be
the date which is sixty (60) calendar days after the later of the date of such
Purchase Order or the date that written notice identifying the Last Site was
issued, and b) for Systems listed on Exhibit S, the Guaranteed Substantial
Completion Date shall be the Guaranteed Substantial Completion date listed on
Exhibit S for each Market.

Notwithstanding the above, if the Owner has performed the Site Preparation
activities with respect to the Last Site, the Guaranteed Substantial Completion
Date shall be the date which is thirty (30) calendar days after the date the
Owner issues a Site Preparation Substantial Completion Certificate with respect
to the Last Site to the Vendor; provided that in all of the foregoing
circumstances, the Guaranteed Substantial Completion Date shall be delayed to a
date mutually acceptable to Vendor and Owner, acting reasonably, in the event
that:

        i.   Owner has not satisfied its obligations, if any, for Site
             Preparation for the installation of the switch by at least twelve
             (12) weeks prior to the Substantial Completion Date (in this case
             the parties agree that the period of delay shall be equal to the
             number of days that the Owner's Site Preparation obligations, if
             any, are delayed beyond such date which is twelve (12) weeks prior
             to the Substantial Completion Date); or

        ii.  extreme weather and other unusual environmental conditions beyond
             Vendor's reasonable control delays Vendor's completion of
             Substantial Completion activities (in this case the parties agree
             that the period of delay shall be equal to the period of time
             associated with the duration of such extreme or unusual
             condition(s)); or

        iii. Vendor is not provided with all necessary and reasonable access to
             the System and each Site; or

        iv.  Owner Subcontractor or Agency Subcontractor, none of which have
             direct contract privity with Vendor, cause delays beyond Vendor's
             control or interfere with Vendor's Work.

Owner shall also involve Vendor through all stages of the Site Acquisition
process. In all cases, Owner shall be responsible for the provisioning of
backhaul facilities required at

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all Sites.  Such provisioning must be completed prior to the start of equipment
integration by the Vendor at each site.

                "Hazardous Materials" means material designated as a "hazardous
                 -------------------
chemical substance or mixture" by the Administrator, pursuant to Section 6 of
the Toxic Substance Control Act, a "hazardous material" as defined in the
Hazardous Materials Transportation Act (49 U.S.C. 1801, et seq.), or a
"hazardous substance as defined in the Occupational Safety and Health Act
Communication Standard (29 CFR 1910.1200).

                "Initial Period" is defined in Section 10.1(f).
                 --------------

                "Initial Software Features" means those software features
                 -------------------------
contained in Vendor's standard base generic software releases together with
those additional optional software features listed in Exhibit C.

                "Installation and Integration" is defined in Exhibit F.
                 ----------------------------

                "Intellectual Property Rights" is defined in subsection 15.2.
                 ----------------------------

                "Interoperability" means the ability of the Products to operate
                 ----------------
with other Products and to operate with and within a System, all in accordance
with the Specifications.

                "Liquidated Damages" is defined in subsection 16.1.
                 ------------------

                "List Price" means Vendor's published "network wireless systems
                 ----------
price reference guide" or other price notification releases furnished by Vendor
for the purpose of communicating Vendor's prices or pricing related information
to Vendor's customers; however this does not include firm price quotation.

                "Losses" means any claims, demands, suits, proceedings, causes
                 ------
of action, damages, costs, expenses, liabilities, reasonable attorneys' fees,
and amounts paid in settlement.

                "Major Outage" means the cessation of operation of a System or
                 ------------
System Element caused by a Defect or Deficiency attributable solely to Vendor
which has a material adverse impact on Owner's ability to operate or maintain
such System, render billings to Owner's subscribers, or which causes a material
interruption in Owner's ability to continue to furnish or offer service
functionalities and features to such subscribers. In addition, the following
capacity and/or coverage impairment conditions shall be considered a "Major
Outage":

                        (i) Any impairment caused by a Defect or Deficiency
          attributable solely to Vendor that has the effect of reducing by
          greater than [*] the number of traffic channel resources available in
          the System for access by Owner's subscribers; and/or

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

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                        (ii)  Any impairment caused by a Defect or Deficiency
          attributable solely to Vendor that has the effect of rendering greater
          than [*] of the equipped antenna sectors in the System unable to
          process origination, termination or hand-off requests; or that reduces
          the forward channel power of more than [*] of the equipped sectors in
          the System by greater than [*]; and/or

                        (iii) The persistent occurrences of an impairment
          referenced in paragraphs (i) or (ii) above which, although each
          occurrence falls below the [*] threshold, each occurrence exceeds a
          threshold of greater than [*] of the applicable metric set forth
          above, and the total number of such occurrences is greater than [*]
          events during the Initial Period;

provided, however, that the foregoing definition shall only be applicable for
purposes of this Contract for the issuance of a Certificate of Final Acceptance
at the end of the Initial Period.

                "Maintenance and Instruction Manuals" means the manuals listed
                 -----------------------------------
in Exhibit P and prepared by the Vendor and delivered to the Owner pursuant to
Section 9.

                "Manufacturing" means the fabrication of the Equipment.
                 -------------

                "Market" means a geographic area for which Owner owns a license
                 ------
and for which Owner desires to purchase PCS systems .

                "Material Adverse Effect" is defined in subsection 24.2(b).
                 -----------------------

                "Milestones" means the performance milestones set forth in the
                 ----------
Exhibits.

                "Minimum Purchase Commitment" is defined in subsection 5.1(a).
                 ---------------------------

                "MSC" means a mobile switching center and usually consists of a
                 ---
Lucent 5 ESS-2000(R) AnyMedia switch, an operations and management platform and
the Executive Cellular Processor Complex which includes call processing, system
intelligence handling and feature control functionality.

                "Network Operations Center Design Services" means those Services
                 -----------------------------------------
as described in Exhibit E-9.

                "Network Planning" means Work related to the design and
                 ----------------
engineering of a System, including frequency clearance.

                "Network Reliability Center", "Network Reliability Services"
                 --------------------------    ----------------------------
means the remote monitoring and surveillance Work to be performed by Vendor or
Subcontractor, and certain obligations of the Owner, as described in Exhibit H.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       9
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                "Notice of Completion of Installation and Integration
                 ----------------------------------------------------
Certificate" means the certificate issued by Vendor certifying that all
-----------
installation and integration activities for a System specified in Exhibit F are
substantially complete, and that the only remaining Work to be completed by
Vendor consists of Punch List items to be completed prior to Final Acceptance.

                "Operating Affiliates" means a subsidiary or affiliate of Owner
                 --------------------
which is authorized to operate a PCS System and which places Purchase Orders
pursuant to this Contract.

                "Operating Manuals" means the operating and configuration
                 -----------------
manuals listed in Exhibit P to be prepared by the Vendor and delivered to the
Owner pursuant to Section 9 containing detailed procedures and specifications
for the operation of any System, the Chattanooga Replacement, any Expansions
and/or any part thereof including, but not limited to, BTS manuals and BSC
manuals.

                "Operator" shall mean the Owner, a Related Operator, an
                 --------
Operating Affiliate or any independent contractor appointed by the Owner, which
operates a System.

                "Optimization Services" means the RF optimization services
                 ---------------------
described on Exhibit G.

                "Optional Software Features" means Software features for PCS
                 --------------------------
Products available to Owner on a optional, separate fee basis.

                "Owner Subcontractor" means a contractor, vendor, supplier,
                 -------------------
licensor or other Person, having a direct or indirect contract with the Owner or
with any other Subcontractor of the Owner who has been hired to assist the Owner
in the performance of its obligations under this Contract.

                "PCS" means personal communication services authorized by the
                 ---
Federal Communications Commission.

                "Person" means an individual, partnership, limited partnership,
                 ------
corporation, limited liability company, business trust, joint stock company,
trust, unincorporated association, joint venture, Governmental Entity or other
entity of whatever nature.

                "Pre-Deployment Services" means the Work to be provided by
                 -----------------------
Owner, Owner Subcontractor, Vendor or Subcontractor, and certain obligations of
the Owner, as described in Exhibit E-5.

                "Products" means the collective reference to the Equipment and
                 --------
the Software provided by the Vendor or any Subcontractor.

                                       10
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                "Program Management", means the Work to be performed by Owner,
                 ------------------
Owner Subcontractor, Vendor or Subcontractor, and certain obligations of the
Owner, as described in Exhibit E-7.

                "Proprietary Information" is defined in subsection 26.18.
                 -----------------------

                "Punch List" means that list prepared in conjunction with any
                 ----------
certificate or notice which contains one or more immaterial non-service-
affecting items which have not been fully completed as of the date of the
accompanying certificate; provided that such incomplete portion of the Work
                          --------
shall not, during its completion, materially impair the normal daily
operation of a System in accordance with the Specifications.

                "Purchase Order" means a written notice given by the Owner to
                 --------------
the Vendor in compliance with the provisions of this Contract specifying the
Products, Services or other items of Work that the Vendor is authorized to
supply or commence in compliance with the terms of this Contract.

                "Purchase Order Date" means the date on which any Purchase Order
                 -------------------
is issued by the Owner in accordance with the terms of this Contract.

                "Related Operator" means an entity (other than Owner) which
                 ----------------
holds a license issued by the FCC permitting the holder to provide wireless PCS
services, which has entered into a contract with Owner to provide management
responsibilities with respect to the operation of such a service, which may
include agreements pursuant to which Owner resells to or shares with such entity
capacity on the Owner's System as, for example, when the Related Operator's cell
site equipment is interconnected with the Owner's MSC.

                "RF" means radio frequency.
                 --

                "RF Design Services" means the Work to be performed by Owner,
                 ------------------
Owner Subcontractor, Vendor or Subcontractor, and certain obligations of the
Owner, as described in Exhibit D.

                "RF Optimization Services" means the Work to be performed by
                 ------------------------
Owner, Owner Subcontractor, Vendor or Subcontractor, and certain obligations of
the Owner, as described in Exhibits G.

                "RTM License" is defined in subsection 13.6.
                 -----------

                "RTU License" is defined in subsection 13.1.
                 -----------

                "Services" means the collective reference to all of the services
                 --------
to be furnished by the Vendor as part of the Work including, but not limited to
Pre-Deployment Services, RF Design Services, Construction Management Services,
Site Acquisition Services, Architecture and Engineering Services, Program
Management Services, engineering, network planning, construction,
interoperability, supply, delivery, installation,

                                       11
<PAGE>

testing, training, repair, maintenance, technical and other support services,
and any and all other services to be furnished by the Vendor as part of the Work
in accordance with the terms of this Contract.

                "Site" means the physical location of a System Element Facility.
                 ----

                "Site Acceptance Certificate" means a document submitted by the
                 ---------------------------
Vendor to the Owner and signed by an authorized representative of the Owner and
an authorized officer of the Vendor stating that, in accordance with the
requirements of this Contract, the Vendor has successfully completed all Site
Acceptance Tests with respect to the Sites specified therein.

                "Site Acceptance Tests" means the collective reference to the
                 ---------------------
performance and reliability demonstrations specified in the Exhibits to
determine whether a site meets the Specifications and other requirements of this
Contract.

                "Site Acquisition" means the activities to be performed by
                 ----------------
Owner, Owner Subcontractor, Agency Subcontractor, Vendor, or Subcontractor, and
certain obligations of the Owner and/or its subcontractors described more fully
in Exhibit E-5.

                "Site Acquisition Substantial Completion" means, with respect to
                 ---------------------------------------
any System, the point at which the Owner shall have (i) acquired, by purchase,
lease or otherwise, rights to a sufficient number of Sites in the judgment of
the Owner, and (ii) that, with respect to all Sites within such System, all land
use and/or lease requirements necessary to be satisfied prior to the start of
construction activities in accordance with Applicable Laws have been satisfied.

                "Site Acquisition Substantial Completion Date" means with
                 --------------------------------------------
respect to any System, the date on which the Owner shall have achieved Site
Acquisition Substantial Completion.

                "Site Construction Services" means, when provided by Vendor,
                 --------------------------
those Services as described in Exhibit E-3.

                "Site Preparation" means the demolition, construction and
                 ----------------
renovation work (for example, roads, grading, fencing and structural
improvements, including, but not limited to, any buildings, towers and
commercial power) and the preparation of co-location sites necessary for the
installation of Equipment or the operation of the System, Chattanooga
Replacement, Expansions and/or any part thereof.

                "Site Preparation Substantial Completion" means the completion
                 ---------------------------------------
of all Site Preparation with respect to a Site except for Punch List items.

                "Site Preparation Substantial Completion Certificate" is defined
                 ---------------------------------------------------
in Section 10.1(b).

                                       12
<PAGE>

                "Software" means (a) the computer software licensed to the Owner
                 --------
pursuant to the terms of this Contract, (b) any Software Enhancements, Software
Maintenance Releases, Software Combined Releases and Software Upgrades, and (c)
any Documentation furnished hereunder in respect of clauses (a) and/or (b) of
this definition.

                "Software Combined Release" means a Software Upgrade which is at
                 -------------------------
any time combined with any Software Enhancement.

                "Software Enhancements" means modifications or improvements made
                 ---------------------
to th Software relating to Products which improve performance, capabilities or
capacity of the Software revision level with which it is associated or which
provide additional functions to the Software. A Software Enhancement may also
correct defects in earlier versions of the Software.

        "Software Maintenance Release" means issues of Software which correct
         ----------------------------
defects in preceding versions of Software.

                "Software Upgrades" means periodic updates to the Software
                 -----------------
issued by the Vendor to the Owner under Warranty and Software maintenance
obligations which add to, improve or enhance existing Software features and
capabilities involving more extensive changes to the underlying Source Code or
the user interface than is the case with Software Enhancements. A Software
Upgrade may also correct defects in the Software, or otherwise to correct
shortcomings in the Software.

                "Source Code" means any version of Software incorporating high
                 -----------
level or assembly language that generally is not directly executable by a
processor.

                "Spares" is defined in Exhibit K.
                 ------

                "Specifications" means the collective reference to the
                 --------------
specifications and performance standards (including all of the Services and
Products) as set forth in this Contract, including but not limited to Exhibit I,
Exhibit J, Exhibit M; provided that (i) the Specifications shall be deemed to
                      --------
include a requirement that all of the Products and Services shall be in
accordance with ANSI standards except when otherwise stated in a specific
Exhibit or otherwise agreed by the parties, and (ii) with respect to Services
and Products for which specifications and performance standards are not provided
and listed in a specific Exhibit, the term "Specifications" shall refer to
Vendor's published specifications in respect thereof.

                "Spectrum Clearing and Microwave Relocation Services" means,
                 ---------------------------------------------------
when provided by Vendor, those Services as described in Exhibit E-6.

                "Subcontractor" means a contractor, vendor, supplier, licensor
                 -------------
or other Person, having a direct or indirect contract with the Vendor or with
any other Subcontractor of the Vendor who has been hired to assist the Vendor in
the performance of its obligations under this Contract.

                                       13
<PAGE>

                "Substantial Completion" means the time at which the Owner signs
                 ----------------------
the Certificate of Substantial Completion.

                "System" means the collection of Sites and Equipment in a
                 ------
defined Market area which allows Owner to provide PCS within such defined Market
area (whether or not the collection of Sites and Equipment in such defined
Market area includes a dedicated MSC or uses a remote MSC within another defined
Market area) identified by the Owner to the Vendor in writing as collectively
comprising a System.

                "System Element" means the Products required to perform radio,
                 --------------
switching and/or system element functions for a System, any Expansions and/or
the Chattanooga Replacement.

                "System Element Facility" means the structures, improvements,
                 -----------------------
foundations, towers, and other facilities necessary to house or hold any System
Element and any related Products to be located at a particular location.

                "Taxes" is defined in subsection 5.2.
                 -----

                "Training" is defined in subsection 9.4.
                 --------

                "Vendor Developments" is defined in subsection 14.3.1.
                 -------------------

                "Vendor Financing" means a loan to be provided by the Vendor to
                 ----------------
the Owner pursuant to documentation acceptable to both parties.

                "Warranty" means any one or more of the Equipment and Services
                 --------
Warranty Expansions Warranty, Software Warranty, Software Backwards
Compatibility Warranty, Equipment Backwards Compatibility Warranty, Compliance
Warranty and the Year 2000 Warranty.

                "Warranty Period" is defined in Section 18.1.
                 ---------------

                "Work" means the furnishing of Products hereunder, and the
                 ----
performance of work, engineering services, installation services and all other
related activities and obligations required to be performed by the Vendor
pursuant to this Contract. Any reduction in the Work to be performed on a System
in a Market not listed on Exhibit S shall be at Owner's direction.

                1.2 Other Definitional Provisions. (a) When used in this
                    -----------------------------
Contract, unless otherwise specified therein, all terms defined in this Contract
shall have the defined meanings set forth herein. Terms defined in the Exhibits
are deemed to be terms defined herein; provided that in the case of any terms
                                       -------- ----
that are defined both in this Contract and/or an Exhibit, the
definitions contained in this Contract shall supersede such other definitions
for

                                       14
<PAGE>

all purposes of this Contract; provided further, that definitions contained in
                               -------- -------
any Exhibit shall control as to such Exhibit.

                (b) The words "hereof", "herein" and "hereunder" and words of
similar import when used in this Contract refer to this Contract as a whole and
not to any particular provision of this Contract and Section, subsection,
schedule and exhibit references are to this Contract unless otherwise specified.
Reference herein to Section shall mean any and all subsections thereof.

                (c) The meanings given to terms defined in this Contract are
applicable to both the singular and plural forms of such terms.

                SECTION 2. SCOPE OF WORK, RESPONSIBILITIES AND PROJECT
MILESTONES

                2.1 Scope of Work. During the Contract Term and in accordance
                    -------------
with Purchas Orders issued to Vendor from time to time, the Vendor shall
engineer, design, plan, manufacture, construct, install, test and perform all
Work. The terms of this Contract shall also apply to Purchase Orders issued by
Operating Affiliates and by Owner, for and on behalf of its Related Operators,
provided that in each case, the Purchase Orders are made pursuant to and
incorporate by reference the terms of this Contract. The Vendor shall be
responsible for providing in accordance with the terms of this Contract any and
all items and services which are expressly included by the terms of this
Contract or in the Exhibits. Owner shall be permitted under the terms of this
Contract to purchase any additional Products and Services manufactured or
provided by Vendor or Vendor's subsidiaries or affiliates. Additional exhibits
may be added to this Contract in order to address Product specific
specifications or other requirements as mutually agreed to by the parties. The
Vendor shall furnish all labor, materials, tools, transportation and supplies
required to complete its obligations in accordance with this Contract.

        In instances where Purchase Orders are placed by Owner for or on behalf
of a Related Operator, Owner shall be considered the purchaser for purposes of
placing all orders, addressing invoices and the obligation of payment. Owner
agrees to be obligated hereunder with respect to all payments which become due
hereund er with respect to Purchase Orders placed by it for or on behalf of a
Related Operator, including but not limited to all payments for Products. In
addition, Owner shall be considered the purchaser for purposes of passage of
title and risk of loss with regard to Products and Software which are delivered
to it, even though such are subsequently re-delivered to another entity.

        The parties agree that Vendor's affiliates will sell Products and
Services to affiliates of Owner (including Leap Wireless and its subsidiaries
and affiliates) for deployment in markets outside of the United States on terms
and conditions substantially the same as the terms and conditions set forth
herein (as this Contract may be amended from time to time); provided, however,
that the parties acknowledge and agree that Vendor carries on business outside
of the United States through affiliates and local country partners, and that
certain

                                       15
<PAGE>

modifications will be required to sales to Owner affiliates outside of the
United States on a case by case basis to accommodate different business
environments, including different regulatory requirements, freight, taxes,
import duties and the cost of providing Services in a jurisdiction outside of
the United States.  The parties further acknowledge and agree that Vendor will
not be the contracting party for business conducted outside of the United
States.  For purposes of this paragraph: (a) an affiliate of a party means a
Person that directly or indirectly controls, is controlled by or is under common
control with such party, and (b) control means the possession, directly or
indirectly, of the power to direct or cause the direction of the management of a
Person, whether through the ability to exercise voting power, by contract or
otherwise.  Controlled and controlling shall have correlative meanings.

                2.2 Plan for Chattanooga. In addition to its obligations
                    --------------------
specified in Section 2.1, upon the terms and conditions set forth herein, the
Vendor shall provide those Products and Services described in Exhibit B-3 to the
Owner in order to provide for the technology swap for the System in Chattanooga,
Tennessee (the "Chattanooga Replacement").
                -----------------------

                2.3 Site Acquisition. The Vendor may be requested to provide
                    ----------------
certain Site Acquisition Services in accordance with the terms of Exhibit E-5,
however Owner shall acquire all Sites. As the Site Acquisition progresses, the
Vendor agrees to alter regularly the engineering plan to determine a new search
ring or rings to take into account any changes or modifications requested by the
Owner due to the inability to acquire sufficient rights to a location which
could constitute a Site in a timely or economic manner; provided that all such
alterations shall be considered by the parties and addressed pursuant to the
Change Order provisions described in Section 11 below. When making changes to
the RF engineering plan, the Vendor shall take into account the Site Acquisition
already completed.

                2.4 Expansions. During the five (5) year period commencing on
                    ----------
the Effective Date, the Owner may, from time to time, order Expansions from the
Vendor, subject to the provisions of Section 12. The price and terms of such
Expansions shall be as set forth in Exhibits B and B-1 through and including B-8
(collectively, the "B Exhibits").
                    ----------

                2.5 Review of Contract. Each party has examined in detail and
                    ------------------
carefully studied and compared the Contract with all other information furnished
by the other party and has promptly reported to the other party any material
errors, inconsistencies or omissions so discovered or discovered by any of its
Subcontractors.

                2.6 Eligibility under Applicable Laws and Applicable Permits.
                    --------------------------------------------------------
The Vendor shall be responsible for ensuring that the Vendor and its
Subcontractors are and remain eligible under all Applicable Laws and Applicable
Permits to perform the Work under this Contract in the various jurisdictions
involved including, to the extent that Vendor will be responsible for
construction for any particular component of the Work, all such construction
will be done in accordance with all applicable Federal Communications Commission
requirements. Each of the Owner and the Vendor shall be responsible for
obtaining and maintaining in full force and effect the Applicable Permits listed
as its responsibility in the

                                       16
<PAGE>

applicable Exhibits. Owner shall use its best efforts to obtain such approvals,
licenses, permits, tariffs, and/or other authorities from the Federal
Communications Commission and state and local public utilities commissions as
may be necessary for construction and operation of a PCS System.

                2.7 Further Assurances. The Vendor shall execute and deliver all
                    ------------------
reasonable further instruments and documents, and will, in good faith, consider
all reasonable requests for further action, including, but not limited to,
assisting the Owner in filing notices of completion with the appropriate state
and local Governmental Entity, that may be necessary or that the Owner may
reasonably request in order to enable the Owner or the Vendor to complete
performance of the Work or to effectuate the purposes or intent of this
Contract. All such requests shall be addressed pursuant to the Change Order
procedures described below in Section 11.

                2.8 Liens and Other Encumbrances. (a) The Vendor covenants and
                    ----------------------------
agrees, subject to Vendor's receipt from Owner of full payment in respect
thereof, to:

                        (i) protect and keep free all Systems, Expansion,
     Chattanooga Replacement and/or any and all interests and estates therein
     acquired from the Vendor, and all improvements and materials now or
     hereafter placed thereon under the terms of this Contract, from any and all
     claims, liens, charges or encumbrances of the nature of mechanics, labor or
     materialmen liens or otherwise arising out of or in connection with
     performance by any Subcontractor, including services or furnishing of any
     materials hereunder, and to promptly have any such lien released by bond or
     otherwise; and

                        (ii) give notice of this subsection to each
     Subcontractor before such Subcontractor furnishes any labor or materials
     for any System.

                (b) If any laborers', materialmens', mechanics', or other
similar lien or claim thereof is filed by any Subcontractor, the Vendor shall
cause such lien to be satisfied or otherwise discharged, or shall file a bond in
form and substance satisfactory to the Owner in lieu thereof within ten (10)
Business Days of the Vendor's receipt of notice of such filing. If any such lien
is filed or otherwise imposed, and the Vendor does not cause such lien to be
released and discharged forthwith, or file a bond in lieu thereof, then, without
limiting the Owner's other available remedies, the Owner has the right, but not
the obligation, to pay all sums necessary to obtain such release and discharge
or otherwise cause the lien to be removed or bonded to the Owner's satisfaction
from funds retained from any payment then due or thereafter to become due to the
Vendor.

                (c) The Owner reserves the right to post or place within any
System notices of non-responsibility or to do any other act required by
Applicable Law, to exempt the Owner from any liability to third parties by
reason of any work or improvements to be performed or furnished hereunder;
provided that failure by the Owner to do so shall not release or
-------- ----
discharge the Vendor from any of its obligations hereunder.

                                       17
<PAGE>

                2.9 Duty To Inform Itself Fully; Waiver of Defense. (a) Each
                    ----------------------------------------------
party shall be deemed to have notice of and to have fully examined and approved
the Specifications, the Exhibits and all other documents referred to herein, and
all drawings, specifications, schedules, terms and conditions of this Contract,
regulations and other information in relation to this Contract and/or any
amendments, modifications or supplements thereto at any time on or after the
Effective Date and to have fully examined, understood and satisfied itself as to
all information of which it is aware and which is relevant as to the risks,
contingencies and other circumstances which could affect this Contract and in
particular the installation of any System or any part thereof.

                2.10 Special Provisions Regarding Vendor Financing. The
                     ---------------------------------------------
financing made available to Owner pursuant to separate financing agreements will
provide Owner with an available source of funds ("Funds") for purchases of items
                                                  -----
other than the Products and Services specified hereunder for the Systems.
With respect to the purchase of any additional items to be used in connection
with the Systems, or to be used in any additional market area for which Owner
obtains PCS licenses utilizing the Funds, or the purchase of any other items
utilizing the Funds, Vendor shall be treated as a preferred vendor and will be
provided the first opportunity to provide such additional items in accordance
with the terms of this Contract, provided such items conform to the
specifications and are competitively priced . In the event that Vendor does not
manufacture such an item equivalent in Form, Fit and Function, or if Vendor
manufactures the item equivalent in Form, Fit and Function but does not offer it
to Owner at a competitive market price, Owner shall be permitted to purchase
such items from third parties utilizing the Funds, subject to the limitations
set forth in the Vendor Financing. In addition, Owner may utilize the Funds to
purchase services from third parties for a System, provided however, that the
total amount of such Funds used to purchase such services shall not exceed the
limitations set forth in the Vendor Financing.

                SECTION 3.  PURCHASE ORDERS AND SCHEDULES

                3.1 Purchase Orders. The Owner and any Operating Affiliate may
                    ---------------
deliver Purchase Orders to the Vendor at any time and from time to time during
the Contract Term. Such Purchase Orders shall be sent to the Vendor either by
certified mail, electronic transmission or another mutually acceptable manner to
the address specified in Exhibit L of this Contract. All Purchase Orders shall
be governed by the terms and conditions of this Contract, unless otherwise
agreed by the parties in writing. Each Purchase Order shall specify, in
reasonable detail, the Products, Services or other items of Work to be provided
by the Vendor.

                3.2 Delivery under the Contract. The Vendor shall complete the
                    ---------------------------
Work specified in each Purchase Order in accordance with the terms and
conditions of this Contract.

                3.3 Order Acceptance. All Purchase Orders submitted by Owner
                    ----------------
shall be deemed to incorporate and be subject to the terms and conditions of
this Contract unless otherwise agreed in writing. All Purchase Orders, including
electronic orders, shall contain

                                       18
<PAGE>

the information necessary for Vendor to fulfill the order.  All schedules and
requested dates are subject to Vendor's concurrence, provided that if orders are
made within the agreed to lead times specified in Exhibit L, Vendor shall not
withhold its concurrence to the requested dates.  No provision or data on any
Purchase Order or contained in any documents attached to or referenced in any
Purchase Order, or any subordinate document (such as shipping releases), which
is inconsistent with the terms of this Contract shall be binding, except data
necessary for Vendor to fill the order.  All such other data and provisions are
hereby rejected. Electronic orders shall be binding on Owner notwithstanding the
absence of a signature, provided that the parties have implemented a mutually
acceptable electronic order process and such orders deemed to be binding have
been issued by Owner and accepted by Vendor in accordance with the process
agreed upon by the parties.   Order acceptance provisions, together with
delivery schedules and intervals and forecast requirements are set forth in
Exhibit L.

        While it is Vendor's objective to provide Owner with an acknowledgment
of each order received, Owner shall advise Vendor to the extent that Owner
becomes aware of any missing or late notifications to ensure that the order has
not been lost.

         Changes made by Owner to an accepted Purchase Order shall be treated as
a separate order unless the parties expressly agree otherwise. If any such
change affects Vendor's ability to meet its obligations under the original
Purchase Order, any price, shipment date, or completion date quoted by Vendor
with respect to such original order is subject to change and shall be addressed
pursuant to the Change Order provisions below in Section 11.

                3.4 Forecasts. Owner shall provide to Vendor regular forecasts
                    ---------
of Owner's annual Product and Services needs. If the quantities ordered are more
than 25% greater than forecast quantities, Vendor shall be permitted a
reasonable extension of time to fulfill such orders and achieve the Milestones
required of Vendor hereunder.

                3.5 Deployment Plans and Milestones. The deployment plans and
                    -------------------------------
intervals, together with the key Milestones, order intervals, in respect of each
System, are set forth in Exhibit L and in Exhibit S.

                3.6 Inventory Control and Bar-coding. Vendor shall, at no
                    --------------------------------
additional charge, pack and mark shipping containers in accordance with its
standard practices for domestic shipments. Where in order to meet Owner's
requests, Vendor packs and/or is required to mark shipping cartons in accordance
with Owner's specifications, Vendor shall invoice Owner additional charges for
such packing and/or marking. Vendor shall (a) enclose a packing memorandum with
each shipment and, if the shipment contains more than one package, identify the
package containing the memorandum, and (b) mark Products as applicable for
identification in accordance with Vendor's marking specifications (for example,
model/serial number and month, year of manufacture).

                                       19
<PAGE>

                SECTION 4.  SUBCONTRACTORS

                4.1 Subcontractors. The Vendor may subcontract any portion of
                    --------------
its obligations under this Contract, but no such subcontract shall relieve
Vendor from primary responsibility and liability for the performance of Vendor's
covenants and obligations under this Contract. Regardless of whether or not the
Vendor obtains approval from the Owner or a Subcontractor or whether the Vendor
uses a Subcontractor recommended by the Owner, use by the Vendor of a
Subcontractor shall not, under any circumstances: (i) give rise to any claim by
the Vendor against the Owner if such Subcontractor breaches its subcontract or
contract with the Vendor; (ii) give rise to any claim by such Subcontractor
against the Owner; (iii) create any contractual obligation by the Owner to the
Subcontractor; (iv) give rise to a waiver by the Owner of its rights to reject
any Defects or Deficiencies or Defective Work; or (v) in any way release the
Vendor from being solely responsible to the Owner for the Work to be performed
under this Contract.

                4.2 The Vendor's Liability. The Vendor is responsible for all of
                    ----------------------
its obligations under this Contract, including the Work, regardless of whether a
subcontract or supply agreement is made or whether the Vendor relies upon any
Subcontractor to any extent. The Vendor's use of Subcontractors for any of the
Work shall in no way increase the Vendor's rights or diminish the Vendor's
liabilities to the Owner with respect to this Contract, and in all events,
except as otherwise expressly provided for herein, the Vendor's rights and
liabilities hereunder with respect to the Owner shall be as though the Vendor
had itself performed such Work. The Vendor shall be liable for any delays caused
by any Subcontractor as if such delays were caused by the Vendor.

                4.3 No Effect of Inconsistent Terms in Subcontracts. The terms
                    -----------------------------------------------
of this Contract shall in all events be binding upon the Vendor regardless of
and without regard to the existence of any inconsistent terms in any agreement
between the Vendor and any Subcontractor whether or not and without regard to
the fact that the Owner may have directly and/or indirectly had notice of any
such inconsistent term.

                4.4 Assignability of Subcontracts to Owner. Vendor shall use
                    --------------------------------------
reasonable efforts to have each agreement between the Vendor and a Subcontractor
contain a provision stating that, in the event that the Vendor is terminated for
cause, convenience, abandonment of this Contract or otherwise, (i) each
Subcontractor shall continue its portion of the Work as may be requested by the
Owner and (ii) such agreement permits assignment thereof without penalty to the
Owner and, in order to create security interests, to third parties designated by
Owner, in either case at the option of the Owner and for the same price and
under the same terms and conditions as originally specified in such
Subcontractor's agreement with the Vendor.

                4.5 Removal of Subcontractor or Subcontractor's Personnel. The
                    -----------------------------------------------------
Owner has the right at any time to request removal of a Subcontractor and/or any
of a Subcontractor's personnel from Work on the System upon reasonable grounds
and reasonable prior notice to Vendor. Such request (a "Request for Removal")
shall be in writing and shall specify the Owner's reasoning . The Vendor
promptly shall issue  a written response to any such

                                       20
<PAGE>

Request for Removal, specifying the reasoning for its disagreement or agreement,
as the case may be, with the reasoning contained in the Request for Removal.  If
the parties fail to agree, this matter shall be handled in accordance with the
dispute resolution procedures in Section 23.  The exercise of such right by the
Owner shall have no effect on the provisions of subsections 4.1 and 4.2.

  4.6  Subcontractor Insurance.  The Vendor shall require its Subcontractors to
       -----------------------
obtain, maintain and keep in force, during the time they are engaged in
providing Products and Services hereunder, insurance coverage of the types and
levels customary in the industry (provided that the maintenance of any such
Subcontractor insurance shall not relieve the Vendor of its other obligations
pursuant to this Contract).  The Vendor shall, upon the Owner's request, furnish
the Owner with evidence of such insurance in form and substance reasonably
satisfactory to the Owner.

  4.7  Review and Approval not Relief of Vendor Liability.  No inspection,
       --------------------------------------------------
review or approval by the Owner permitted under this Contract of any portion of
the Work shall relieve the Vendor of any duties, liabilities or obligations
under this Contract, but nothing contained in this subsection shall be deemed a
bar of any waiver given by the Owner to the Vendor pursuant to and in accordance
with the terms of this Contract.

  4.8  Vendor Warranties.  Except as otherwise expressly provided in Section 18,
       -----------------
the warranties of the Vendor pursuant to Section 18 shall be deemed to apply to
all Work performed by any Subcontractor as though the Vendor had itself
performed such Work and to all Products supplied by any third-party vendor or
other subcontractor as though the Vendor itself had supplied such Products.
Except as otherwise specifically provided in Section 18, the parties agree that
such warranties shall not be enforceable merely on a "pass-through" basis but
that Owner may, but shall not be obligated to, enforce such warranties of any
Subcontractor to the extent that the Owner determines that the Vendor is not
paying and/or performing its warranties; provided that any such election by the
                                         -------- ----
Owner shall not relieve the Vendor from any obligations or liability with
respect to any such warranty.

  4.9  Payment of Subcontractors.  The Vendor shall make all payments it is
       -------------------------
contractually required to make to all Subcontractors (except in the case of
legitimate disputes between the Vendor and any such Subcontractor arising out of
the agreement between the Vendor and such Subcontractor) in accordance with the
respective agreements between the Vendor and its Subcontractors such that no
Subcontractor shall be in a position to enforce any liens and/or other rights
against the Owner, the System, any Products or any part thereof.

  4.10  Copies. Subject to any confidentiality obligations insisted upon by
        ------
third party providers, including Subcontractors, Vendor will use its good faith,
reasonable efforts to provide Owner with any and all relevant agreements,
understandings, subcontracts and other documents pertaining to the provision of
Products or Services by a Subcontractor which Owner may reasonably require in
order for it to be provided with the information necessary to exercise any of
its rights under this Contract.

                                       21
<PAGE>

  4.11  Benefit of Subcontracts.  In addition to anything else provided for in
        -----------------------
this Contract, the Owner shall be entitled to the following benefits and rights
of the Vendor under its contracts with any applicable third-party vendors or
other Subcontractors: all rights to conduct in-house tests, to receive notice of
upgrades and enhancements and to purchase spare parts; provided however, that
                                                       -------- -------
the Vendor shall maintain sole responsibility for all obligations and other
duties under all such contracts.

             SECTION 5.  PURCHASE COMMITMENTS, PRICES AND PAYMENT

             5.1  Prices; Minimum Purchases.
                  -------------------------

             (a)  Purchase Commitments:
                  --------------------

                           (i)  Minimum Purchase Commitment. The prices for the
     Products, Services and other items of Work for the Contract Term are set
     forth in the B Exhibits. The prices for Expansions and the Chattanooga
     Replacement, including all Work to be performed in connection with the
     Chattanooga Replacement, are also set forth in the B Exhibits. The Owner
     agrees that the aggregate amount of all payments to the Vendor pursuant to
     Purchase Orders delivered to the Vendor during the Contract Term shall be
     not less than Nine Hundred Million dollars ($900,000,000) (the "Minimum
                                                                     -------
     Purchase Commitment").
     -------------------

                           (ii) BTS Purchases.  Owner shall purchase and take
                                -------------
     delivery, title and risk of loss of not less than [*] BTSs before September
     30, 2000. At Owner's direction, the BTSs shall be shipped to the Site
     stated for such BTSs in a Purchase Order or to a staging area or warehouse
     arranged for by the Owner. Vendor shall be responsible for all costs
     associated with transporting the BTSs to the Site, staging area or
     warehouse designated by Owner. Owner shall be responsible for all costs
     associated with transporting BTSs from any such staging area or warehouse
     to the Site. The warranty period for those BTSs installed in a System at
     the time of Substantial Completion shall start as set forth in Section
     18.1, and for those BTSs installed in a System subsequent to Substantial
     Completion shall start as set forth in Section 18.2. Vendor shall ensure
     that each of the [*] BTSs shall reflect the latest engineering change
     notice (ECN) (including, but not limited to, all of the class A changes for
     all hardware and software) in effect at the time of Installation and
     Integration of the BTS. Owner's management and delivery of these [*] BTSs
     prior to installation and integration shall not give rise to an event of
     Force Majeure as provided in Section 17 of this Agreement.

                           (iii)  Equivalent PoPs.  Subject to the terms of this
                                             ----
     Agreement, Owner agrees to award to Vendor and add to Exhibit S a
     sufficient number of additional Markets to comprise a minimum of four
     million, three hundred thousand (4,300,000) Covered PoPs during the five
     (5) year period commencing on the Effective Date of this Agreement. Owner
     shall provide Vendor with forecasts

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       22
<PAGE>

     for Products and Services for these additional markets in accordance with
     Section 3.4.

                           (iv) Purchase Commitment for Professional Services.
     In exchange for the prices set forth in Exhibit B-7 for Pre-Deployment
     Services, Construction Management Services, Site Acquisition Services,
     Construction Services and Architecture and Engineering Services and Program
     Management Services, Owner shall have Vendor perform, at a minimum, such
     Services for Markets 1 through 21 listed on Exhibit S (excluding Kingsport)
     and those future markets referenced in Section 5(a)(iii) above.

             (b)  Prices for Services. The Prices set forth in Exhibit B-7 for
the Services for Pre-Deployment Services, Construction Management Services,
Construction Services, Site Acquisition Services, Architecture and Engineering
Services, and Program Management Services, shall not increase for any Market now
or hereafter awarded to Vendor and listed on Exhibit S prior to December 31,
2001. All other prices for Services listed in the B Exhibits shall not increase
for the Contract Term. The Prices set forth on Exhibit B-7 shall be subject to
negotiation for Services rendered in Markets awarded subsequent to December 31,
2001. The prices for Services in each Market, once established, shall be held
constant until that Market's Certificate of Final Acceptance is approved by
Owner. Pricing for such listed in this subsection and which are subject to price
negotiation after December 31, 2001, shall not increase by greater than five
percent (5%) per annum.

             (c) Price Protection.  Prices for all Products shall be afforded
the following price protection. [***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       23
<PAGE>

             (d) Audit. [***]

                    5.1.1 Volume Purchase Agreement and Discounts. Vendor shall
                          ---------------------------------------
provide Owner with additional discounts for MSC and BTS hardware, including
Spares and Expansions, based upon the total amount of all invoices issued under
this Contract and the total amount of all invoices issued by the Agency
Subcontractor ("Qualified Invoices") as follows:

             a)     Notwithstanding the terms of this subsection, a discount of
[*] shall apply to all prices in the B Exhibits for all MSCs and BTSs, including
Spares and Expansions, in all Markets when the total amount of Qualified
Invoices is equal to or greater than Four Hundred Seven Million dollars
($407,000,000) (the "[*] Trigger"). A discount of [*] shall apply to all prices
in the B Exhibits for all MSC and BTS, including Spares and Expansions in all
Markets when the total amount of Qualified Invoices is equal to or greater than
Six Hundred Million dollars ($600,000,000) (the "[*] Trigger"), except as
otherwise specified below in this Section 5.1.1.

             b)     For Markets 13, 16, 18 and 19- listed on Exhibit S and any
markets awarded after Market 22, all MSC and BTS hardware, including Spares and
Expansions, shall receive a [*] discount off of the pricing in the B Exhibits.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       24
<PAGE>

             c)     For Markets 14, 15, 20 and 22 listed on Exhibit S, all MSC
and BTS hardware, including Spares and Expansions, shall receive a [*] discount
off of the pricing in the B Exhibits. Once Qualified Invoices reach the [*]
Trigger, all purchases in Markets 14 and 15 of MSC and BTS hardware, including
Spares and Expansions, shall receive an additional [*] discount, resulting in a
total [*] discount [*] off of the prices listed in the B Exhibits.

             d)     For Markets 1-12, 17 and 21 listed on Exhibit S, all MSC and
BTS hardware, including Spares and Expansions, shall receive the pricing set
forth in the B Exhibits, subject to subsection 5.1.1 (a).

     Notwithstanding the foregoing, the last [*] BTSs from the [*] BTSs Owner
has agreed to order prior to September 30, 2000, shall receive a discount of [*]
off of the pricing on the B Exhibits.

     Discounts applied to a Market under Sections 5.6 and 16.2.1 of this
Contract shall be added together and calculated against the pricing on the B
Exhibits, as that pricing may be adjusted pursuant to the terms of this
Contract.

             5.2  Taxes.  The Owner shall reimburse Vendor for all present or
                  -----
future taxes, levies, imposts, deductions, charges, withholdings and liabilities
("Taxes") imposed on the Vendor by any Governmental Entity relating to the
  -----
provision of Products and Services by the Vendor to the Owner under this
Contract, provided, however, that the Owner shall not be liable for and shall
not pay or reimburse Vendor for any Taxes on or measured by the income or
receipts of the Vendor. If the Owner shall pay Taxes for which the Vendor
receives a credit, then the Vendor shall reimburse to the Owner an amount equal
to such credit.

             5.3  Invoicing and Payment. Payment for the Products and Services
                                -------
to be supplied pursuant to this Contract shall occur as follows (in each case
following submission of an invoice by the Vendor which shall properly document,
to the reasonable satisfaction of the Owner, all the items included):

            (a)  Products for Systems: except as set forth in subsections (b)
                 --------------------
and (c) below:

                             (i)     [*] of the Product purchase price shall be
     invoiced upon shipment of the Product.

                             (ii)    Payment for Products except as provided in
     subsection 5.3 (a) (iii) shall be as follows:

                             [*] of invoiced amount due within thirty (30) days
     of invoice date;

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       25
<PAGE>

                         [*] of invoiced amount due within thirty (30) days
                         after completion of Installation and Integration;

                         [*] of invoiced amount due within thirty (30) days
                         after Owner signs the Certificate of Substantial
                         Completion;

                         [*] of invoiced amount due within thirty (30) days
                         after Final Acceptance of the System for which the
                         Products were ordered.

               (iii) Payment for Products to be installed in the Markets listed
     on Exhibit S shall be [*] net thirty (30) days of invoice and [*] payable
     thirty (30) days after Owner's acceptance of Notice of Completion of
     Installation and Integration.

          (b) Services: Except as provided below, Services shall be invoiced as
              ---------
performed, or as soon thereafter as practical but in no event more frequently
than monthly, provided that Installation and Integration Services and
Optimization Services will only be invoiced after the Owner signs a Certificate
of Substantial Completion in respect of the System for which such Services are
rendered; provided that in the event that a Certificate of Substantial
Completion is not issued within five (5) Business Days after the Guaranteed
Substantial Completion Date because of a delay in reaching Substantial
Completion solely attributable to the failure or lack of performance of Owner to
satisfy its obligations and commitments in a timely manner, such amount shall be
invoiced on the fifth (5th) Business Day following Substantial Completion.

     For Services rendered in Markets listed on Exhibit S, the following
provisions shall apply; Equipment Engineering Services, as described in Exhibit
B-1, for Products will be invoiced together with the invoice for such Products.
Pre-Deployment Services will be invoiced upon Owner's signature of a Certificate
of Substantial Completion for such Services.  Fixed Network Designed Services
will be invoiced upon completion and delivery of Vendor's analysis to Owner.
[*] of the RF Design Services price will be invoiced upon delivery of the
preliminary search ring data and [*] upon Owner's signature of Certificate of
Final Acceptance for the applicable System.  Architectural & Engineering
Services will be invoiced upon Owner's signature of the Certificate of
Substantial Completion for the applicable System.  Site Acquisition for all Cell
and MSC Sites, together with Installation and Integration Services for Products
will be invoiced upon Owner's signature of the Notice of Completion of
Installation and Integration Certificate of the applicable System.  Building
permit costs and application fees associated with site acquisition and zoning
shall be invoiced as incurred by Vendor, or as soon thereafter as practical, but
no more often than monthly.   Construction Management Services for cell and MSC
Sites and overall Program Management Services will be invoiced upon Owner's
signature of a Certificate of Final Acceptance for the related System.  RF
Optimization Services will be invoiced upon Owner's signature of a Certificate
of Final Acceptance for the related System.  Invoices

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       26
<PAGE>

for NRC Monitoring and Surveillance Services will be invoiced monthly as the
Work is performed.   Invoices for Civil Construction Services will be invoiced
monthly as the Work is performed.  CTSO Services are paid for upon payment of
ARMFs pursuant to the terms of Exhibit B-5.  If CTSO Support Services are not
provided pursuant to the terms of Exhibit B-5, such Services will be invoiced
monthly as the Work is performed.  Unless otherwise noted, all such invoices
will be payable thirty (30) days from the date of transmission of Vendor's
invoice.

          (c)  Optional Software Features and Spares:  The purchase price for
               -------------------------------------
the initial Optional Software Features and Spares shall be invoiced after the
Owner signs a Certificate of Substantial Completion in respect of the System for
which such initial Optional Software Features and Spares are furnished; provided
that in the event that a Certificate of Substantial Completion is not issued
within five (5) Business Days after the Guaranteed Substantial Completion Date
because of a delay in reaching Substantial Completion attributable solely to the
failure or lack of performance of Owner to satisfy its obligations and
commitments in a timely manner, such amount shall be invoiced on the fifth (5th)
Business Day following Substantial Completion.

          (d)  Expansions (Growth):
               -------------------

               (i)  [*] of the Product purchase price of all Purchase Orders
     completed by the Vendor for which Vendor provides installation Services
     pursuant to an Expansion shall be invoiced upon shipment of such Products.
     [*] of the invoiced amount will be payable thirty (30) days from date of
     transmission of Vendor's invoice, and the remaining [*] will be payable
     thirty (30) days after the date Owner signs the Notice of Completion of
     Installation and Integration Certificate; and

               (ii)  [*] of the Product purchase price of all Purchase Orders
     completed by the Vendor with respect to Products for which Vendor provides
     no installation Services pursuant to an Expansion shall be invoiced upon
     shipment of such Products, payable thirty (30) days after the date Vendor
     issues its invoice.

          (e)  Payment of Invoices.  Owner shall pay the invoiced amounts, less
               -------------------
any disputed amounts, within the time periods noted in this Contract.
Delinquent payments are subject to a late payment charge after thirty (30) days
at the rate of [*] per month, or portion thereof, of the amount due (but not to
exceed the maximum lawful rate).  Any disputed items which are determined to be
validly billed are due for payment based upon the original invoice date.

          5.5  No Payment in Event of Material Breach. Subject to Subsection
               --------------------------------------
24.5, the Owner shall have no obligation to make any payment for any Work with
respect to which the Vendor is in material breach of this Contract until and
unless such breach is cured or waived by the Owner in accordance with the terms
of this Contract.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       27
<PAGE>

          5.6  Additional Product Price Provisions. For the Markets listed on
               -----------------------------------
Exhibit S that have Commercial Service Launch Dates identified on Exhibit S as
December 1, 2000 or earlier, and that achieve Commercial Service with [*] or
more of the planned cell sites prior to December 1, 2000, there will be no
change in the prices set forth in the B Exhibits for the Products for those
Markets. For all other Markets listed, or to be listed, on Exhibit S and for the
Markets listed on Exhibit S that have Commercial Service Launch Dates prior to
December 1, 2000 but are not launched with [*] or more of the planned cell sites
in accordance with the terms of this Contract, Cricket will be issued purchase
credits in an amount equal to [*] of the net invoiced amount for all of the
Products purchased, and to be purchased, by Cricket for such Markets. Such
purchase credits will be added to the Region 1 Swap Out Credit pool established
in Section 7.2. These credits may be applied by Owner against any invoice for
any Market after December 1, 2000. Credits under this subsection shall not be
applied in amounts that are greater than [*] of all Products purchased for the
Market giving rise to the claim.

          5.7  Currency and Place of Payment. Payments under this Contract shall
               -----------------------------
be made in US dollars and if such method of payment is acceptable to Owner,
Owner shall pay all amounts due Vendor hereunder using Electronic Funds Transfer
("EFT"). EFT payments by Vendor shall be made to the following account of Vendor
or such other account as is subsequently designated by Vendor in writing and,
concurrent with the EFT payment, Owner shall fax a coy of the remittal to
Vendor's manager of cash operations at 770-750-4288:

          Chase Manhattan Bank
          New York, New York
          Account Name:  Lucent Technologies Inc.
          Acct.:  910144-9099
          ABA 021000021

          SECTION 6.  AVAILABILITY OF IOS
                      -------------------

          6.1  Availability of IOS.  [***]
               -------------------

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       28
<PAGE>

          6.2  Effect of Other Base Stations.  [***]
               -----------------------------

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       29
<PAGE>

          SECTION 7. MODCELL/MINICELL REPLACEMENT

          7.1.  Minicell/Modcell.  For markets to be located in Chattanooga and
                ----------------
Nashville, Tennessee, for up to a maximum of [*] Sites, [*] shall de-install and
redeploy the minicells in such Markets to a market area(s) of Owner's choice at
[*], and replace such minicells with modcells in accordance with this Section.
[*] shall be responsible for temporary warehousing of the de-installed minicells
at a location of Owner's choosing within the United States.  [*] shall be
responsible, at [*], for transportation from the original location to such
warehouse, transportation from such warehouse to the new installation Site, and
re-installation at the new Site within the United States.  [*] shall be
responsible for the cost of installation of the replacement modcells.  In
addition, Vendor shall provide up to [*] refurbished 5 ESS(R) switches
engineered for up to fifty (50) minicells and one carrier each at [*] for use in
any of Owner's markets at Owner's choice.  [*] shall be responsible for the cost
of engineering and installation of such switches, at prices consistent with the
prices set out in Exhibit B-2 and B-3.

     Vendor shall reimburse Owner [*] incurred by Owner as a result of the use
of minicells in Nashville and Chattanooga, Tennessee, up until the replacement
of the minicells with modcells in such markets.  In the event that Owner delays
the installation of modcells after they are made available by Vendor, Vendor
shall not be responsible for [*] incurred by Owner after the date that the
replacement is made available.

     During the time commencing on the date the minicells are decommissioned
from operation in the System, until the date that the minicells are installed in
the new reinstallation Site, the applicable Warranty Period remaining on such
Products, if any, will be suspended.  Thereafter, upon reinstallation, the
Warranty Period shall continue for a period which is the greater of (i)  the
remaining Warranty Period; and (ii) twelve months following reinstallation.

     During period from decommissioning to redeployment, Vendor will continue to
supply all Class A Upgrades, new Software loads, and other standard support
which would otherwise be provided pursuant to this Contract.  Vendor shall, at
[*], provide reasonable quantities of spares and training in light of the new
total network deployment of modcells and minicells.

     If the refurbished 5 ESS(R) switches to be delivered to Owner have not been
decommissioned immediately prior to the time that they are to be refurbished and
engineered, Vendor will provide Owner with a reasonable opportunity to inspect
the switches at the site where such switches are located, to satisfy itself that
such switches are in a reasonable state of repair and will be fit for Owner's
purposes; provided that the owner or operator of such site consents to the site
inspection.  Owner may refuse to accept such a switch that is not, in Owner's
reasonable opinion, in such a satisfactory condition in accordance with the
foregoing. If the refurbished 5 ESS(R) switches to be delivered to Owner have
been decommissioned and removed from the prior operator's

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       30
<PAGE>

network, Owner or, at Owner's request, a qualified third party reasonably
acceptable to both parties, shall have the right to conduct a reasonable
inspection on such switch, to determine whether the switches are in such a
satisfactory condition in accordance with the foregoing.  If Owner reasonably
objects to the conditions of any of such switches, Vendor will either obtain the
necessary switches in a satisfactory condition, or take such other actions as
are necessary to satisfy Owner's objections.

          7.2  Region I Swap-out Credit. Vendor will make available to Owner
               ------------------------
general purchase credits in the amount of [*] (the "Region I Swap-out Credits"),
                                                    -------------------------
to be applied against any invoice issued by Vendor during the initial twenty
four (24) months of the Contract term, provided that Credits shall not be
applied to any particular invoice in an amount greater than 20% of the net
invoiced amount; provided, however that Vendor will agree with reasonable
requests by Owner to either adjust the amount which can be applied to each
invoice in order to ensure that the entire amount of the Region I Swap-out
Credits are applied against invoices during such initial twenty four (24) month
period or extend the initial twenty four (24) in order to facilitate the entire
usage of the Region I Swap-out Credits.

          7.3  MSC Pricing.   For all MSC switches ordered by Owner for any
               -----------
System and which are engineered to support a third carrier at the time of
delivery, Vendor agrees, at no additional expense, to defer invoicing Owner for
that portion of the purchase price for the Equipment attributable to the third
carrier support (Equipment only) until a date which is [*] months following the
Guaranteed Substantial Completion Date of the System relating to each such MSC.
For purposes of this Section, the portion of each invoice deferred for the third
carrier shall be equal to [*] of the price of each MSC. Each such invoice shall
be payable within five (5) days of the date of transmission of Vendor's invoice.
The deferred invoicing will be accelerated and be issued forthwith if Owner
begins to utilize the third carrier functionality on a particular MSC.

           SECTION 8.  SERVICES

           8.1  Transportation. The Vendor shall at the Vendor's sole cost and
                --------------
expense provide for the transportation and delivery to the Sites of all the
Products to be delivered pursuant to, and in accordance with, each Purchase
Order and the terms of this Contract. In the event of any unusual Site
selections or requirements which require transportation arrangements out of the
ordinary course having regard to normal industry standards and practices (such
as non-standard crane requirements, helicopter transportation requirements to a
remote setting, etc.), Vendor shall arrange, subject to Owner's prior approval,
for such exceptional transportation requirements from local staging facilities
or warehouse locations to the unusual Site. Vendor shall notify Owner that it
believes, in good faith, that exceptional transportation arrangements are
necessary in the circumstances, and Vendor will consult with Owner on an
approved course of action to complete delivery. Owner shall be responsible for
all costs with respect to such exceptional transportation requirements in excess
of transportation costs applicable to a standard Site. In the event that Owner
requires

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       31
<PAGE>

Vendor to ship any Products to a warehouse location, Owner shall be responsible
for all costs associated with transportation of such Products from such
warehouse to the Site(s).

          8.2  Services.  The Vendor shall provide the Services ordered by Owner
               --------
in accordance with the provisions of this Agreement and the Exhibit.

          8.3  No Interference.  The Vendor shall install all Equipment and
               ---------------
build each of the Systems so as to cause no unauthorized interference with or
obstruction to lands and thoroughfares or rights of way on or near which the
installation work may be performed. The Vendor shall exercise every reasonable
safeguard to avoid damage to existing facilities, and if repairs or new
construction are required in order to replace facilities damaged by the Vendor
due to its carelessness, negligence or willful misconduct, such repairs or new
construction shall be at the Vendor's sole cost and expense. Vendor understands
that many of the Sites may be co-located with other RF transmission facilities
and Vendor shall take all necessary precautions and safety measures to ensure
the safety of all of Vendor's and Subcontractors' personnel at such Sites. The
Owner shall use its reasonable best efforts to ensure that no other third
parties employed or engaged by the Owner hinder or delay the Vendor in the
performance of its obligations hereunder, including the provision of Services.
The parties will address any such hindrance or delay pursuant to the change
order process outlined below.

     Vendor represents and warrants that all Products furnished hereunder shall
comply, to the extent required, with the requirements of Part 24 of the Federal
Communication Commission's Rules and Regulations (the "FCC Rules") pertaining to
                                                       ---------
personal communications services in effect upon delivery of such Product.  In
addition, Vendor represents and warrants that a Product furnished hereunder
shall comply, to the extent required, with the requirements of Subpart J of Part
15 of the FCC Rules in effect upon delivery of such Product, including those
Sections concerning the labeling of such Product and the suppression of radio
frequency and electromagnetic radiation to specified levels.  Vendor makes no
undertaking with respect to harmful interference caused by (i) unauthorized
installation, repair, modification or change or Products not furnished by
Vendor; (ii)  Products being subject to misuse, neglect, accident or abuse by
other than Vendor; (iii)  Products being used in a manner not in accordance with
operating instructions or in a suitable installation environment or operations
of other equipment in the frequency ranges reserved for Owner within the
applicable licensed area.  Vendor assumes no responsibility under this clause
for items not specified or supplied by Vendor.  The foregoing warranties are
collectively referred to as the "Compliance Warranty".
                                 -------------------

     Vendor shall, when appropriate, have reasonable access to Owner's premises
during normal business hours and at such other times as may be agreed upon by
the parties in order to enable Vendor to perform its obligations under this
Contract.  Vendor shall coordinate such access with Owner's designated
representative prior to visiting such premises.  Vendor agrees to instruct its
employees to comply with all site rules while on Owner's premises.  The
employees and agents of Vendor shall, while on the Owner's premises, comply with
all site rules and guidelines including, but not limited to, where required by
government regulations, submission of satisfactory clearance from U.S.
Department of Defense and

                                       32
<PAGE>

other governmental authorities concerned.  Neither party shall require waivers
or releases of any personal rights from representatives of the other in
connection with visits to its premises, and no such releases or waivers shall be
pleaded by either party in any action or proceeding.

    For purposes of this Section, all references to "Owner's premises" and other
similar references shall be deemed to refer to any location where a Site is to
be located, which may include land or buildings owned or leased by Owner.  To
the extent that Owner does not own the premises, Vendor's obligations to adhere
to site rules and guidelines shall include, without limitation, those rules and
guidelines required by the owner, landlord or property manager having care and
control of such premises, which Owner has provided to Vendor in advance of the
commencement of the applicable Work hereunder.

            SECTION 9.  MANUALS, ENGINEERING DRAWINGS AND TRAINING

          9.1  Documentation.  The Vendor shall provide the Documentation in the
               -------------
amounts and formats listed in Exhibit P. The Documentation shall be prepared in
accordance with the relevant Specifications. Operating Manuals with up-to-date
(but not "as-built") drawings, specifications and design sheets shall be
available for the Training as set forth in subsection 9.4.

          9.2  Standards for Manuals.  All Operating Manuals and Maintenance and
               ---------------------
Instruction Manuals required to be provided by the Vendor pursuant to this
Contract shall be:

          (a)  detailed and comprehensive and prepared in conformance with the
Specifications and generally accepted national standards of professional care,
skill, diligence and competence applicable to telecommunications and operation
practices for facilities similar to the Systems;

          (b)  consistent with good quality industry operating practices for
operating personal communications service systems of similar size, type and
design;

          (c)  sufficient to enable the Owner to operate and maintain each
System on a continuous basis; and

          (d)  prepared subject to the foregoing standards with the goal of
achieving operation of each System at the capacity, efficiency, reliability,
safety and maintainability levels contemplated by this Contract and required by
all Applicable Laws and Applicable Permits.

           9.3  Equipment and Data. The Vendor shall furnish all drawings,
                ------------------
specifications, specific design data, preliminary arrangements and outline
drawings of the Equipment and all other information as required in accordance
with this Contract in

                                       33
<PAGE>

sufficient detail to indicate that the Equipment and fabricated materials to be
supplied under this Contract comply with the Specifications.

           9.4  Training.  As more fully described in Exhibit O, the Vendor
                --------
shall provide to the Owner a training program with respect to each System
(collectively, the "Training"). Promptly upon execution of this Contract, the
                   ---------
Vendor shall establish a training coordinator, whose responsibility shall be to
work with the Owner to ensure that the Owner receives the Training. Such
coordinator (or his or her replacement) shall continue in such assignment until
the receipt by the Owner of all of the Training required to be provided.

           9.5  Manuals and Training. The Training and the Documentation
                --------------------
provided in connection herewith, including, without limitation, all
Documentation provided in CD-ROM format, and pursuant to subsections 9.2, 9.3
and 9.4 shall be updated in reasonable quantities at no additional cost to Owner
pursuant to and in accordance with all Product upgrades and/or modifications
applicable to any System and/or any part thereof.

           SECTION 10.  ACCEPTANCE PROCEDURES

           10.1  Acceptance Procedures.  Depending upon the specific Products
                 ---------------------
and Services to be furnished by Vendor, and those tasks for which Owner shall
assume responsibility, the parties, directly or through third-party vendors or
other Subcontractors, as the case may be, shall carry out the following
procedures. Certain of the tests below will apply to purchases of Products and
Services which comprise a System, while certain other tests will apply to tests
for Product and Service purchases for Expansions.

           (a)  Factory Tests.  Owner may, at Owner's option and cost, be
                --------------
present at any factory testing conducted by Vendor. Vendor shall give the Owner
ten (10) Business Days advance notice of any such factory testing relating to
the Products or Services furnished by Vendor hereunder. Vendor shall cooperate
with Owner to facilitate Owner's observation of such tests. Regardless of
whether or not Owner observes any factory testing, Vendor agrees to, within a
reasonable period of time in view of the nature and urgency of the request, upon
written request by Owner, provide Owner with copies of all documentation
relating to factory testing of the Product specified by Owner, including without
limitation copies of test procedures, test results and FCC compliance
certifications.

           (b)  Site Preparation Substantial Completion. Upon completion of all
                ----------------------------------------
Site Preparation with respect to each Site for which the Owner has issued a
Purchase Order directing the Vendor to proceed with Site Preparation activities,
the Vendor shall issue a Site Preparation Substantial Completion Certificate
("Site Preparation Substantial Completion Certificate") certifying that all Site
  ---------------------------------------------------
Preparation specified in the Purchase Order is substantially complete.  Such
certificate shall be accompanied by a Punch List of all incomplete items which
items shall be completed by the Vendor prior to Final Acceptance. In the event
the Owner performs Site Preparation with respect to a Site, the Owner shall
issue the Site Preparation Substantial Completion Certificate.

           (c)  Notice of Completion of Installation and Integration
                ----------------------------------------------------
Certificate. Upon completion of the installation of the BTS and other Products
-----------
and the completion of integration activities in accordance with Exhibit F, the
Vendor shall issue a Notice of Completion of Installation and Integration
Certificate certifying that all installation and integration activities
specified in Exhibit F are substantially complete. Such certificate shall be
accompanied by a Punch List of all incomplete items which items shall be
completed by the Vendor prior to Final Acceptance. Owner shall sign off

                                       34
<PAGE>

on or make known any objections to the Notice of Completion of Installation and
Integration Certificate within fifteen (15) business days after such notice is
delivered to Owner, otherwise the Notice of Completion of Installation
Certificate shall be deemed accepted.

           (d)  Certificate of Substantial Completion. Upon completion of
                -------------------------------------
Optimization Services and all testing with respect to a System in accordance
with Exhibit G, which in no case shall occur until Owner has signed the Notice
of Completion of Installation and Integration Certificate for no less than
ninety (90) per cent of the cell sites planned for the System, the Vendor shall
issue a Certificate of Substantial Completion., The Certificate of Substantial
Completion shall be in the form of a checklist listing all tests performed and
the results thereof, and shall be accompanied by a Punch List of outstanding
items (the "Certificate of Substantial Completion"). Upon its reasonable
            -------------------------------------
satisfaction that the Certificate of Substantial Completion is correct and
complete, the Owner shall promptly sign the Certificate of Substantial
Completion.

           (e)  "Beta" Tests  Upon written notice to the Vendor, the Owner shall
                ------------
be entitled, in its sole discretion to conduct beta testing, and in connection
therewith the Owner shall be entitled to add appropriate items to the Punch List
prior to Final Acceptance.

           (f)  Certificate of Final Acceptance. During the [*] day period
                -------------------------------
following Substantial Completion (as extended as described below, the "Initial
Period"), the Vendor shall complete all outstanding Punch List items and the
Owner and the Vendor shall monitor the System for outages and compliance with
the Specifications. In event that all Punch List items have been completed
during the Initial Period, all testing specified in Exhibit G has been
satisfactorily completed and there have been no Major Outages, then at the end
of the Initial Period the Vendor shall issue a Certificate of Final Acceptance
certifying the same. Upon its reasonable satisfaction that the Certificate of
Final Acceptance is correct and complete, the Owner shall sign the Certificate
of Final Acceptance. In the event that a Major Outage occurs during the Initial
Period, the Initial Period shall be extended (each, an "Extension Period") as
                                                        ----------------
follows: (i) if a Major Outage occurs on or prior to [*] days after the
commencement of the Initial Period, the Initial Period shall be extended for an
additional [*] days, (ii) if a Major Outage occurs after [*] days but on or
prior to [*] days after the commencement of the Initial Period, the Initial
Period shall be extended for an additional [*] days, and (iii) if a Major Outage
occurs after [*] days but on or prior to [*] days after the commencement of the
Initial Period, the Initial Period shall be extended for an additional [*] days.
In the event a Major Outage occurs during any Extension Period, the Initial
Period shall be further extended by an additional period of [*]. Owner shall
issue a Certificate of Final Acceptance not later than the end of the

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       35
<PAGE>

Initial Period (as extended) after receipt of notice of Vendor that it corrected
the problem giving rise to the Major Outage or Major Outages.  Documentation not
already delivered to the Owner pursuant to the terms of this Contract shall be
delivered to the Owner within [*] Business Days of Final Acceptance.  With
respect to each System, the Owner shall not be required to sign the Certificate
of Final Acceptance until all such documentation has been so delivered (and
Final Acceptance shall not be deemed to have occurred earlier than the date that
is [*] Business Days prior to the date of delivery of such documentation).  In
addition to, and without limiting the requirements set forth in the preceding
sentence, the Operating Manuals and the Maintenance and Instruction Manuals
shall be submitted to the Owner in CD-ROM format (when available) in addition to
hard-copy volume format if so requested by the Owner.

           10.2  Costs and Expenses.  The costs and expenses of complying with
                 ------------------
all acceptance procedures set forth above shall be borne by the Vendor, provided
that Owner remains responsible for completing those items identified as Owner's
responsibility in the Exhibits.

           SECTION 11.  CHANGE ORDERS AND SCHEDULING

           11.1  Change Orders.  The Owner has the right to request expansions,
                 -------------
other revisions and/or modifications to any Purchase Order or to the Work
("Changes"), including but not limited to the Specifications, the manner of
  -------
performance of the Work or the timing of the completion of the Work. All Changes
shall be subject to the prior written consent of the Vendor. All Changes shall
be documented in a written order ("Change Order") which shall be executed by the
                                   ------------
Owner and the Vendor and shall contain any adjustments to pricing, Milestones or
other aspects of the Work as mutually agreed by the parties.  The Vendor shall
promptly notify the Owner of any such requested Changes which may materially
affect the operation and/or maintenance of any System or any part thereof.  In
the event that the parties cannot agree on a Change Order within fifteen (15)
days of submission of a Change Order by the Owner to the Vendor, the matter
shall then be referred to dispute resolution pursuant to Section 23.  Nothing
contained in this subsection is intended to limit the Vendor's right, from time
to time, to make suggestions for modifications to the Work or the
Specifications, provided that in any such event the Owner, in its sole and
                -------- ----
absolute discretion pursuant to the terms of this Contract may refuse to make
any such modification or otherwise agree to issue a Change Order incorporating
any such Vendor suggestion.

           11.2  Cancellation.  Owner may at any time cancel, in whole or in
                 ------------
part, any Purchase Order or Change Order upon advance written notice to the
Vendor. In the event of such cancellation, the Owner shall pay to the Vendor
cancellation charges in accordance with the Exhibits.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       36
<PAGE>

           SECTION 12.  DISCONTINUED PRODUCTS AND CONTINUING PRODUCT SUPPORT

           12.1  Notice of Discontinuation. For a period of [*] for the 5 ESS(R)
                 -------------------------
switch and [*] for all other Products furnished hereunder after the Effective
Date, but in no event less than [*] after the date of shipment, the Vendor
agrees to provide the Owner, or its affiliates as the case may be, not less than
one (1) year notice before the Vendor discontinues a Product ("Discontinued
                                                               ------------
Products") furnished under this Contract. In respect of Products manufactured by
--------
a third party vendor, the notice period may vary. Where the Vendor offers a
product for sale that is equivalent in Form, Fit and Function in accordance with
and pursuant to the Specifications, the notification period may vary but in no
event shall be less than sixty (60) days. In the event of the foregoing, the
Vendor shall continue to furnish Products fully compatible with the relevant
System Elements within the System at such time during the appropriate [*] and
[*] periods referenced above; provided that nothing herein shall bar the Vendor
from discontinuing individual items of Products as provided in and pursuant to
this subsection. In the event that Vendor discontinues a Product, Vendor will
meet with Owner and use reasonable, good faith efforts to develop a mutually
acceptable transition plan that takes into account the Owner's existing
investment in the item scheduled for discontinuance.

     In addition to repairs provided for under any applicable Warranty, Vendor
shall offer repair Services and repair parts in accordance with Vendor's repair
and repair parts practices and terms and conditions then in effect, for Vendor-
manufactured Equipment furnished pursuant to this Contract.  Such repair
Services and repair parts shall be available while Vendor is manufacturing or
stocking such Products or repair parts, but in no event less than [*] for the 5
ESS switch and [*] for all other Products after such Product's discontinued
availability effective date.  Vendor may use either the same or functionally
equivalent products or parts which are new, remanufactured, reconditioned or
refurbished in the furnishing of repairs or replacements under this Contract.

     If during the agreed-to support period following the issuance of notice of
discontinuance, Vendor fails to provide repair parts and or repair Services and
a functionally equivalent replacement has not been designated, Vendor shall so
advise Owner, to allow Owner to plan appropriately, and if Vendor is unable to
identify another source of supply for such repair parts or services, Vendor
shall, in addition to any other right or remedy available to Owner at law or in
equity, provide Owner, at no additional charge to Owner, upon request, with non-
exclusive licenses for Product manufacturing to the extent Vendor can grant such
licenses, so that Owner will have sufficient information, ability and rights to
have such Discontinued Products manufactured, or obtain such repair Service or
repair parts from other sources.  Such license shall include appropriate non-
disclosure and confidentiality covenants.

           12.2  Discontinuation During Warranty Period. If Vendor discontinues
                 --------------------------------------
the availability of a Product during that Product's Warranty Period and Owner is
required to

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       37
<PAGE>

purchase a replacement Product to replace the Discontinued Product in order to
maintain the same functionality of the Discontinued Product in a System, Vendor
agrees to grant Owner an additional [*] discount to be applied against the net
price of all Products required to be purchased by Owner as replacements for such
Discontinued Product, which additional discount shall be applied after the
determination of the lowest price available to Owner pursuant to this Contract,
excluding the application of any Region 1 Swap-Out Credits.

           SECTION 13.  SOFTWARE; CONFIDENTIAL INFORMATION

           13.1  RTU License.  Upon delivery of the Software, but subject to
                 -----------
payment of the license fees specified in Exhibit B-5, the Owner is hereby
granted a personal, non-exclusive, fully paid-up, multi-site (capability to move
Software from site to site on prior notice to Vendor) right to use license for
the Software ("RTU License"), to operate the specific Equipment, processor or
               -----------
product line for which the licenses to use the Software are initially granted,
or temporarily on any comparable replacement if any such Equipment, processor or
product line becomes inoperative.  Owner shall use such Software only for its
own internal business operation.  The RTU License grants Owner no right to, and
Owner will not, sublicense such Software or modify, decompile, or disassemble
Software furnished as object code to generate corresponding source code provided
in each of the Systems.  Except as provided below,  no license is granted to
Owner to use the Software outside of the United States.

     In the event that Owner wishes to use the Software on associated equipment
outside of the United States or to transfer Software to an affiliate or third
party transferee located outside the United States, Vendor shall not
unreasonably withhold its consent to such use or transfer, provided that Vendor
or the transferee, as the case may be, enters into an appropriate license
agreement with an affiliate of Vendor carrying on business in the territory in
which the Software is to be located, on terms substantially similar to the RTU
License terms set forth herein, provided, however, that Owner acknowledges and
agrees that support and maintenance obligations set forth herein are only
applicable for Software resident on Equipment located within the United States.
Support and maintenance Services offered by Vendor's affiliates differs in
various different territories, and will be subject to the local practices
maintained in such territory.

           13.2  Owner's Obligations.  The Owner agrees that the Software,
                 -------------------
whether or not modified, and all copies thereof made by Owner, shall be treated
as proprietary to the Vendor, its Subcontractors or its suppliers, as
appropriate and the Owner shall:

           (a)  Utilize the Software solely in conjunction with a System;
provided that the Vendor acknowledges that the Software shall be integrated
-------- ----
across interfaces with systems, equipment and software provided by other
suppliers and customers;

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       38
<PAGE>

           (b)  Ensure that all copies of the Software shall, upon any
reproduction by the Owner authorized by the Vendor and whether or not in the
same form or format as such Software, contain the same proprietary,
confidentiality and copyright notices or legends which appear on the Software
provided pursuant hereto; and

           (c)  Hold secret and not disclose the Software to any person, except
to (i) such of its employees, contractors, agents or affiliates that are
involved in the operation or management of a System and need to have access
thereto to fulfill their duties in such capacity, or (ii) other Persons who need
to use such Software to permit integration of a System with systems and software
of other suppliers and customers; provided that such persons agree, or are
                                  -------- ----
otherwise obligated, to hold secret and not disclose the Software to the same
extent as if they were subject to this Contract, and provided further that if
any such Person is a competitor of Vendor involved in the manufacture of
communications equipment, software or related services, Vendor must approve such
use on a case-by-case basis on commercially reasonable terms and such use shall
be subject to an appropriate non-disclosure agreement.

           (d)  When and if the Owner determines that it no longer needs the
Software or if the Owner's license is canceled or terminated pursuant to the
terms of this Contract, return all copies of such Software to the Vendor or
follow reasonable written disposition instructions provided by the Vendor. If
the Vendor authorizes disposition by erasure or destruction, the Owner shall
remove from the medium on which Software resides all electronic evidence of the
Software, both original and derived, in such manner that prevents subsequent
recovery of such original or derived Software.

           (e)  Owner shall not copy Software embodied in firmware and unless
otherwise specifically provided in this Contract, Owner is not granted any right
to modify Software furnished by Vendor under this Contract.

           13.3  Backwards Compatibility.  The Vendor represents and warrants
                 -----------------------
(the "Software Backwards Compatibility Warranty") that each Software Maintenance
     ------------------------------------------
Release, Software Upgrade and Software Enhancement will be Backwards Compatible.
[***]  Notwithstanding the foregoing, the Software Backwards Compatibility
Warranty does not apply to Products developed beyond 3G1X which are developed in
accordance with standards not yet finalized as of the date hereof.

           13.4  Transfer and Relocation.  (a) In the event the Owner or any
                 -----------------------
successor to the Owner's title in the Products (i) elects to transfer a Product
to a third party, and where such Product shall remain in place and used for
substantially the same purpose as used by the Owner and where such third party
resides in the United States and is not a direct competitor of the Vendor
involved in the manufacture of communications equipment, software or related
services, or (ii) elects to transfer Products to an affiliate, the Owner may

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       39
<PAGE>

transfer its RTU License for the Software furnished under this Contract for use
with such Product, without the payment of any additional Software right-to-use
fees by the transferee provided that Annual Maintenance Fees shall continue to
be calculated on the same basis.  For example, if the RTU License for the
Software contains usage or per subscriber limits, or the processor to be used by
transferee requires additional memory or hard disk space additional payments or
purchases may be required.  The  following conditions shall apply to transfers
and relocations pursuant to this subsection 13.4:

               (A)  The right to use such Software may be transferred only
                    together with the Products with which the Owner has a right
                    to use such Software, and such right to use the Software
                    shall continue to be limited to use with such Products;

               (B)  Before any such Software is transferred, the Owner shall
                    notify the Vendor of such transfer and the transferee shall
                    have agreed in writing (a copy of which shall be provided to
                    the Vendor) to keep the Software in confidence and to
                    corresponding conditions respecting possession and use of
                    Software as those imposed on the Owner in this Contract; and

               (C)  The transferee shall have the same right to Software
                    warranty and Software maintenance for such Software as the
                    transferor, provided the transferee continues to pay the
                    fees, including recurring fees, if any, associated with such
                    Software warranty or maintenance pursuant to this Contract.

     (b)  Except as otherwise provided in this Contract, the Owner or any
successor to the Owner's title in the Products shall have no right to transfer
Software furnished by the Vendor under this Contract without the consent of the
Vendor, which consent shall not be unreasonably withheld. If the Owner or such
successor elects to transfer a Product purchased under this Contract for which
it does not under this Contract have the right to transfer related Software, the
Vendor agrees that upon written request of the transferee of such Product, or of
the Owner or such successor, the Vendor shall not without reasonable cause fail
to grant to the transferee a license to use such Software with the Products,
whether to be located within the United States or elsewhere, upon payment of a
relicensing fee to the Vendor on commercially reasonable terms acceptable to
Vendor.

     13.5  Termination and Survival.  The rights and obligations of the Owner
           ------------------------
under the RTU License shall survive the termination of this Contract, regardless
of the cause of termination provided Owner has met its material obligations
hereunder and has rendered all payments in accordance with this Contract. In the
event that Owner persistently and materially breaches its confidentiality
obligations hereunder with respect to the Software notwithstanding the fact that
Vendor will have provided Owner with prior written notice describing the alleged
material breaches and will have given Owner a reasonable time, and in no event
less than thirty (30) days, to cure any such breaches, Vendor may terminate

                                       40
<PAGE>

Owner's RTU License.  In the event that Owner fails to pay the Annual Release
Maintenance Fees (other than with respect to any periods for which no payment
for Annual Release Maintenance Fees are due pursuant to this Contract), Vendor
may terminate Owner's right to use the Software to which such fees apply.  In no
event other than as set forth in this subsection 13.5 may Vendor terminate
Owner's right to use the Software.  Notwithstanding any other provision of this
Contract, if there is a dispute, pending final resolution of such dispute, all
of Owner's rights under this Contract shall continue in full force and effect,
and Vendor will not terminate the RTU License, and so long as Owner continues to
pay Vendor applicable Annual Maintenance Release Fees, Vendor will not
terminate, suspend, interrupt or delay maintenance and support of the Software.

     13.6  Access to Source Codes. The Vendor represents and warrants that as of
           ----------------------
the date hereof, Vendor has not established a Source Code escrow for any of its
existing customers.  In the event that Vendor establishes a Source Code escrow
in the future which applies to any of the Software furnished to Owner hereunder,
Vendor shall add Owner as a beneficiary of such Source Code escrow, and Owner
shall be entitled to receive a copy of the escrowed Source Code in the event of
the occurrence of any of the events set out below.  In addition to the
foregoing, the Vendor shall immediately deliver and hereby grants the Owner a
right to access the Source Code and to modify the Software (the "RTM License")
                                                                 -----------
for the maintenance, enhancement and support of those Products purchased from
the Vendor and owned or operated by the Owner under the following circumstances,
provided that any such released Source Code shall be subject to the
confidentiality provisions set forth in this Contract:

           (i) if the Vendor becomes insolvent, makes a general assignment for
     the benefit of creditors, files a voluntary petition in bankruptcy or an
     involuntary petition in bankruptcy is filed against the Vendor which is not
     dismissed within sixty (60) days, or suffers or permits the appointment of
     a receiver for its business, or its assets become subject to any proceeding
     under a bankruptcy or insolvency law, domestic or foreign, or has
     liquidated its business, or the Vendor, or a business unit of the Vendor
     that is responsible for maintenance of the Software, ceases doing business
     without providing for a successor, and the Owner has reasonable cause to
     believe that any such event shall cause the Vendor to be unable to meet its
     Warranty service or support requirements hereunder; or

           (ii) if the Vendor ceases to maintain or support a previously
     supported version of the Software and Owner cannot obtain, with Vendor's
     assistance (for example, by providing a third party with Source Code or by
     any other appropriate method) the same support services the Vendor is
     required to provide under this Contract from another entity (either working
     with or independently from Vendor) at a price that is equal to or less than
     the prices for such support as provided herein, or there is a persistent
     and material failure by Vendor to provide the Warranty service or support
     it is required to provide pursuant to the terms of this Contract.

                                       41
<PAGE>

     13.7  Ownership of Intellectual Property.  The Vendor shall own all forms
           ----------------------------------
of intellectual property rights (including, but not limited to, patent, trade
secret, copyright and mask rights) pertaining to the Software, and shall have
the right to file for or otherwise secure and protect such rights.  The
foregoing notwithstanding, the parties understand and agree that from time to
time the Owner may devise, develop or otherwise create ideas or other concepts
for services or new products which are patentable or otherwise capable of
receiving protection from duplication.  In such event, the Owner shall have the
right to apply for a patent in accordance with applicable law, provided,
however, that notwithstanding this subsection, the Vendor does not hereby
relinquish or release any of its intellectual property rights.

     SECTION 14.  SOFTWARE AND EQUIPMENT CHANGES

     14.1  Software.
           --------

              14.1.1  Software Upgrades, Software Maintenance Releases,
                       ------------------------------------------------
Software Enhancements and Combined Releases.  During the Contract Term, upon
-------------------------------------------
payment of the Annual Release Maintenance Fees, calculated pursuant to Exhibit
B-5, Owner shall receive all base Software releases and all Software Maintenance
Releases, Software Upgrades, Software Enhancements and Software Combined
Releases applicable to Software for Products for which the Owner has obtained a
RTU License at such times as they become generally available to the Vendor's
customers. Owner shall also be entitled to receive Optional Software Features
upon payment of the appropriate fees determined in accordance with Exhibit B-5.
Owner may elect to purchase such features on a per feature basis, or purchase
annual buy-out rights on a per market basis, permitting Owner to select those
features it wishes to deploy in the relevant market.

              14.1.2  Notice.  The Vendor shall give the Owner, or cause the
                      ------
Owner to be given not less than ninety (90) days prior written notice of the
introduction of any Software Enhancement release or any Software Combined
Release or any optional Software release. In addition, in each February and
August of each year during the term of this Contract, the Vendor shall provide,
or cause to be provided, to the Owner a forecast of future Software Enhancement
releases, Software Upgrades, or Software Combined Releases or any optional
Software release, as the case may be, then currently being developed by or on
behalf of the Vendor.

              14.1.3  Installation, Testing and Maintenance.  The installation
                      -------------------------------------
and testing of the Software by the Vendor and the acceptance thereof by the
Owner shall be performed in accordance with the criteria set forth in Exhibit G.

              14.1.4  Software Fixes.  In the event that any Software
                      --------------
Maintenance Release, Software Upgrade, Software Enhancement or Software Combined
Release supplied by the Vendor during the term of this Contract has the effect
of preventing any System or any part thereof from satisfying, or performing in
accordance with the Specifications or the Exhibits or otherwise adversely
affects the functionality or features of

                                       42
<PAGE>

any System or any part thereof, then the Vendor shall promptly retrofit or take
such other corrective action as may be necessary to ensure that any System or
any such affected part, as modified to include each such Software Maintenance
Release, Software Upgrade, Software Enhancement or Software Combined Release,
shall satisfy, and perform in accordance with, the Specifications and the
Exhibits and restore all pre-existing functionality and features as well as
provide any new features and functionality provided by any of the foregoing
modifications, in each case without any charge to the Owner (other than payment
of the applicable fees pursuant to the terms of this Contract).  Notwithstanding
anything contained herein in this subsection to the contrary, Owner shall be
responsible for the cost of any additional Equipment required to accommodate
additional capacity, memory or processing requirements necessitated by any new
Software feature or Optional Software Feature which Owner elects to use
(provided such use by Owner is optional without losing the benefit of the
Software Maintenance Release or Software Upgrade) which are contained in any
such Software Upgrade, Software Enhancement or Software Combined Release;
provided, however, that Owner shall not be required to pay for any additional
Equipment required to accommodate additional capacity, memory or processing
requirements necessitated by implementation of a required Software Maintenance
Release, whether or not such Software Maintenance Release is issued as a stand-
alone release, or is contained within a Software Upgrade, Software Enhancement
or Software Combined Release.

     14.2  Equipment.
           ---------

              14.2.1  Equipment Upgrades.  (a)  (i) Equipment Upgrades will be
                      ------------------
provided to the Owner by the Vendor at no charge to the Owner as provided in
subsection 14.2.1(b) below.  Equipment Enhancements must be provided to the
Owner by the Vendor, if requested by the Owner, and the Owner is obligated to
make payment therefor in an amount that is specified on the B Exhibits.  If the
Vendor at any time issues an Equipment Upgrade which is combined with any
Equipment Enhancement (collectively, the "Equipment Combined Release") to such
                                          --------------------------
Equipment, the Equipment Combined Release will be provided at no charge to the
Owner unless and until the Owner uses any of the Equipment Enhancements
included within the Equipment Combined Release, provided such use by Owner of
such Equipment is optional without losing the benefit of the Equipment Upgrade.

                   (ii) In order to identify and minimize the impact to Owner
     and Owner's subscribers should BTS Products (hardware circuit packs only)
     exhibit excessive failures from Defects and Deficiencies or other recurring
     failures ("Field Failures"), Vendor shall provide the following:

                   a. Vendor shall provide to Owner quarterly reviews on all BTS
                      circuit pack failure rates for Products returned to
                      Vendor through Vendor's return, service and repair
                      process("RS&R Process"). Except for data relevant to
                      Owner's Field Failures, such data shall not contain
                      information identifying any of Vendor's other customers.

                                       43
<PAGE>

                   b. Vendor shall perform its failure mode analysis ("FMA")
                      process when a BTS circuit pack of a given revision level
                      is found to have an annualized failure rate above [*]. The
                      annualized failure rate is calculated within a period not
                      to exceed the most recent twelve (12) months and such
                      Field Failures shall be averaged across circuit packs of
                      its revision level within the Owner's System. If the FMA
                      process determines that a specific circuit pack is failing
                      due to a common component or part and the failure rate
                      exceeds [*] calculated by the method described above, then
                      Vendor, at no cost to Owner, shall replace all effected
                      BTS circuit packs with corrected circuit packs. Vendor
                      shall also cover the cost for the de-installation of the
                      effected circuit packs and the replacement and
                      reinstallation with corrected circuit packs, unless the
                      parties agree otherwise. Owner shall track any returns to
                      Vendor due to Field Failures and comply with Vendor's RS&R
                      Process.

                   c. In the event Owner reasonably suspects excessive failure
                      rates in any Product delivered under this Contract,
                      whether or not such failures are service impacting, then
                      within forty-eight (48) hours of Vendor's receipt of
                      Owner's written notice, Vendor shall acknowledge such
                      receipt and propose a response plan which shall include
                      the commencement of the FMA process to determine the cause
                      of such failure within the initial forty-eight (48) hour
                      period. If a series of three consecutive requests within a
                      twelve (12) month period yields "no trouble found" or if
                      the parties agree that no common failures exist that
                      exceed the [*] threshold, then all subsequent FMA requests
                      received during such twelve month period that do not
                      result in Equipment Upgrades will be processed at the
                      Owners expense.

                   d. In the event that a Field Failure causes Owner's System to
                      perform not in accordance with the Specifications and such
                      non-performance results in a loss of service to Owner's
                      subscribers, then Vendor and Owner shall use best efforts
                      to minimize any out of service conditions during such

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       44
<PAGE>

                   e. period of time. Such actions shall include but not be
                      limited to providing additional Spares, field personnel
                      and any other assistance the Owner may require for Vendor
                      to take corrective action related to such Field Failures.

           (b)  (i) After a Product has been shipped to the Owner, if the Vendor
issues an Equipment Upgrade or Equipment Enhancement, or where a modification to
correct an error in field documentation is to be introduced, the Vendor will
promptly notify the Owner of such change through the Vendor's design change
management system or another Vendor notification procedure.  Each change
notification, whether or not it bears a restrictive legend, will be subject to
the confidentiality obligations provided in subsection 26.18, except that such
information may be reproduced by the Owner for the Owner's use as required
within the System.  If the Vendor has engineered, furnished, and installed a
Product which is subject to an Equipment Upgrade, the Vendor will implement such
change, at its sole cost and expense, if it is announced within [*] for the 5
ESS(R) switch and [*] for all other Products from the date of shipment of that
Product, and subject to the reasonable review and acceptance of the Owner at
such times as the Owner reasonably determines that it needs to review such
Vendor decision, by either (A) modifying the Product at the Owner's site; (B)
modifying the Product which the Owner has returned to the Vendor in accordance
with the Vendor's reasonable instructions pursuant to and in accordance with the
terms of this Contract; or (C) replacing the Product requiring the change with a
replacement Product for which such change has already been implemented.  If the
Vendor has not engineered the original Product application and accordingly
office records are not available to the Vendor, the Vendor will provide the
generic change information and associated parts for the Owner's use in
implementing such change.

                       (ii) In any of the instances described in clause (i)
      above, if the Vendor and the Owner agree that a Product or part thereof
      subject to such change is readily returnable, without incurring any
      significant time or expense, the Owner, at its expense, will remove and
      return such Product or part to the Vendor's designated facility within the
      United States and the Vendor, at its sole expense, will implement such
      change (or replace it with a Product or part for which such change has
      already been implemented) at its facility and return such changed (or
      replacement) Product or part at its sole cost and expense to the Owner's
      designated location within the United States. Any such reinstallation of
      Products which were readily returnable will be performed by the Owner at
      its sole expense, provided such reinstallation can be done by Owner
      without incurring any significant time or expense. In all other
      circumstances, Vendor shall provide such removal, repair and
      reinstallation Services at its sole cost and expense.

                       (iii) If the Owner does not make or permit the Vendor to
      make an Equipment Upgrade as stated above within the appropriate [*] or
      [*] period from the date of change notification or such other period as
      the Vendor may agree, subsequent changes, repairs or replacements affected
      by the

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       45
<PAGE>

     failure to make such change may, at the Vendor's option, be invoiced to the
     Owner whether or not such subsequent change, repair or replacement is
     covered under the warranty provided in this Contract for such Product. If
     requested by the Owner, Equipment Upgrades announced more than the
     appropriate [*] or [*] period from the date of shipment will be implemented
     at the Owner's expense.

                       (iv) If the Vendor issues an Equipment Enhancement after
     a Product has been shipped to the Owner, the Vendor will promptly notify
     the Owner of such change if it is being offered to any of the Vendor's
     customers. Except as otherwise set forth above in subsection 14.2(b), when
     an Equipment Enhancement is requested by the Owner, the pricing set for
     such Equipment Enhancements will be at the Vendor's standard charges
     subject to the applicable discounts set forth in the B Exhibits.

                       (v) All change notifications for Equipment Upgrades and
     Equipment Enhancements provided by the Vendor to the Owner pursuant to the
     terms of this Contract must contain the following information: (A) a
     detailed description of the change; (B) the reason for the change; (C) the
     effective date of the change; and (D) the implementation schedule for such
     change, if appropriate.

           14.2.2  Notice.  The Vendor shall give, or shall cause to be given
                   ------
to, the Owner not less than ninety (90) days prior written notice of the
introduction of any Equipment Enhancement or any Equipment Combined Release. In
addition, in each February and August of each year during the Term of this
Contract, the Vendor shall provide the Owner with a forecast of future Equipment
Enhancements to the Equipment or Equipment Combined Releases then currently
being developed by or on behalf of the Vendor.

           14.2.3  Installation, Testing and Acceptance  The Installation and
                   ------------------------------------
testing of the Equipment by the Vendor and the acceptance thereof by the Owner
shall be performed in accordance with the Exhibits and pursuant to the
Milestones contained in the Exhibits.

           14.2.4  Equipment Fixes.  In the event that any Equipment Upgrade or
                   ---------------
Equipment Enhancement, directly or indirectly, supplied by the Vendor during the
appropriate [*] or [*] period following the Effective Date or during [*] period
following the date of shipment of such Equipment Upgrade or Equipment
Enhancement, has the effect of preventing any System or any part thereof from
satisfying, or performing in accordance with, the Specifications or otherwise
adversely affects the functionality, interoperability or features of any System,
or any part thereof then the Vendor shall without any charge to the Owner
promptly retrofit or take such other corrective action as may be necessary to
assure that any System or any such affected part, as modified to include each
such Equipment Upgrade and Equipment Enhancement, shall satisfy, and perform in
accordance with, the Specifications and restore all pre-existing functionality
and features as well as provide any features and functionality provided by any
of the foregoing modifications.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       46
<PAGE>

           14.2.5  Equipment Backwards Compatibility Warranty.  The Vendor
                   ------------------------------------------
represents and warrants (the "Equipment Backwards Compatibility Warranty")
                              ------------------------------------------
that each New Equipment Release will be Backwards Compatible, provided that it
is implemented within the specified time provided with each New Equipment
Release. [***] Notwithstanding the foregoing, the Equipment Backwards
Compatibility Warranty does not apply to Products developed beyond 3G1X which
are developed in accordance with standards not yet finalized as of the date
hereof.

           14.2.6  3G1X.  [***]
             ----

           14.2.7  1.1 ASIC Product. The prices set forth in the B Exhibits
                   ----------------
for a BTS and channel elements includes a BTS equipped with the hardware
component for Vendor's "1.1 ASIC Product".  Each BTS furnished by Vendor
                        ----------------
hereunder will, at no additional charge to Owner beyond the BTS prices set forth
in Exhibit B-1, be equipped at the time of shipment, or be retrofitted to
include after shipment, at Vendor's sole expense, such hardware component of
Vendor's 1.1 ASIC Product.

     14.3  Notice of Developments.
           ----------------------

           14.3.1  Vendor Developments.  The Vendor shall provide the Owner, or
                   -------------------
cause to be provided to the Owner, through the Owner's chief executive officer,
with reasonable written notice of any Product developments, innovations and/or
technological advances (collectively "Vendor Developments") relevant to the
                                      -------------------
System simultaneous to giving such notice to any other customer or otherwise
making any such Vendor Development public; provided that the Vendor shall not be
                                           -------- ----
obligated to provide the Owner such notice before any other customer if doing so
would breach any contractual obligation to any other customer, provided further
that any such notice need not include any information originated by another
customer of Vendor which is proprietary to such other customer of Vendor.  For
the purposes of this subsection the term "Vendor" includes the Vendor and its
affiliates and subsidiaries.

           14.3.2  Participation in Testing.  The Owner has the right, but not
                   ------------------------
the obligation, to witness and/or participate in any initial testing; provided
                                                                      --------
that any such initial testing of Vendor Developments shall be subject to (i)
----
scheduling as reasonably determined by the Vendor, (ii) the qualification that
the Owner's System meets the technical

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       47
<PAGE>

requirements for the testing of such Vendor Development as reasonably determined
by the Vendor (or otherwise that the Owner is willing to update such System to
meet such requirements), (iii) the Owner's acknowledgment that it shall be able
to provide the resources necessary to implement the initial testing for such
Vendor Development, and (iv) the Owner and the Vendor executing a verification
office testing agreement that identifies the scope, terms, pricing,
responsibilities and schedule related to the initial testing of such Vendor
Development.  The Vendor shall provide the Owner at least thirty (30) days'
prior written notice of its intent to test any such Vendor Development and upon
the Owner's written request the Vendor shall allow the Owner to participate in
such testing upon terms and in a testing environment reasonably acceptable to
the parties at such time.  Such rights shall not apply to a Vendor Development
originated by another customer of Vendor which includes information which is
proprietary to such other customer.

           14.3.3  Quarterly Notices.  Vendor shall make reasonable efforts to
                   -----------------
collect and distribute on a quarterly basis a list of new Software bugs,
problems, fixes, etc., provided that Vendor shall not be required to distribute
confidential information of any other customer.

     SECTION 15.  INTELLECTUAL PROPERTY

     15.1  Intellectual Property.  Neither Owner nor Vendor shall publish or use
           ---------------------
any advertising, sales promotion, press releases or publicity matters relating
to this Contract without the prior written approval of the other, in accordance
with Section 26.13.

     15.2  Infringement.  (a) The Vendor agrees that it shall defend, indemnify
           ------------
and hold harmless, at its own expense, all suits and claims against the Owner
for infringement or violation of any patent, trademark, copyright, trade secret
or other intellectual property rights of any third party enforceable in the
United States or in any other territory where Vendor has approved the deployment
or use of Products under this Contract (collectively, "Intellectual Property
                                                       ---------------------
Rights"), covering, or alleged to cover, the Products or any component thereof.
------
The Vendor agrees that it shall pay all sums, including without limitation,
reasonable attorneys' fees and other costs incurred at Vendor's written request
or authorization, which, in defense of, by final judgment or decree, or in
settlement of any suit or claim to which the Vendor agrees, may be assessed
against, or incurred by, the Owner on account of such infringement or violation,
provided that the Owner shall cooperate in all reasonable respects with the
Vendor and its attorneys in the investigation, trial and defense of such lawsuit
or action and any appeal arising therefrom; provided, however, that the Owner
may, at its own cost, participate in the investigation, trial and defense of
such lawsuit or action and any appeal arising therefrom. The parties shall
cooperate with each other in any notifications to insurers. If a claim for
Losses (a "Claim") is to be made by a party entitled to indemnification
           -----
hereunder against the Vendor, the party claiming such indemnification shall give
written notice (a "Claim Notice") to the Vendor as soon as practicable after the
                   ------------
party entitled to indemnification becomes aware of any fact, condition or event
which may give rise to Losses for which indemnification may be sought under this
Agreement, provided, however, no delay on the part of the Owner in

                                       48
<PAGE>

notifying the Vendor shall relieve the Vendor from any obligation hereunder
unless (and then solely to the extent) the Vendor is thereby materially
prejudiced.  If any lawsuit or enforcement action is filed against any party
entitled to the benefit of indemnity hereunder, written notice thereof shall be
given to the Vendor as promptly as practicable (and in any event within fifteen
(15) calendar days after the service of the citation or summons).  The Vendor
shall be entitled, if it so elects, (i) to defend such lawsuit or action, (ii)
to employ and engage attorneys of its own choice to handle and defend the same,
at the Vendor's cost, risk and expense, and (iii) to compromise or settle such
Claim, which compromise or settlement shall be made only with the written
consent of the Owner (which may not be unreasonably withheld), unless such
compromise or settlement includes an unconditional release of any claims against
the Owner in which event such written consent of the Owner shall not be
required.  If the Vendor fails to assume the defense of such Claim within
fifteen (15) calendar days after receipt of the Claim Notice, the Owner against
which such Claim has been asserted will (upon delivering notice to such effect
to the Vendor) have the right to undertake, at the Vendor's cost and expense,
the defense, compromise or settlement of such Claim on behalf of and for the
account and risk of the Vendor.  In the event the Owner assumes the defense of
the Claim, the Owner will keep the Vendor reasonably informed of the progress of
any such defense, compromise or settlement.  The Vendor shall be liable for any
settlement of any action effected pursuant to and in accordance with this
Agreement and for any final judgment (subject to any right of appeal), and the
Vendor agrees to indemnify and hold harmless the Owner from and against any
Losses by reason of such settlement or judgment.

           (b) The Vendor's obligation under this subsection shall not extend to
alleged infringements or violations that arise because the Products provided by
the Vendor are used in combination with other products furnished by third
parties and where any such combination was not installed, recommended or
approved by the Vendor.

           15.3  Vendor's Obligation to Cure.  If in any such suit so defended,
                 ---------------------------
all or any part of the Products or any component thereof is held to constitute
an infringement or violation of Intellectual Property Rights of others and its
use is enjoined, or if in respect of any claim of infringement or violation the
Vendor deems it advisable to do so, the Vendor shall at its sole cost, expense
and option take one or more of the following actions: (i) procure the right to
continue the use of the same without interruption for the Owner; (ii) replace
the same with non-infringing Products that meets the Specifications in
accordance with the terms of this Contract; or (iii) modify said Products, any
System or any component thereof so as to be non-infringing, provided that the
Products, any System or any component thereof as modified meets all of the
Specifications. In the event that the Vendor is not able to cure the
infringement pursuant to clause (i), (ii) or (iii) in the immediately preceding
sentence, in addition to the other rights and remedies provided in this Section
15, the Vendor shall refund to the Owner the full purchase price paid by the
Owner for such infringing Product or feature, and the Owner shall be under no
obligation to return to the Vendor such infringing Product or feature regardless
of whether, or by what means, the Owner, on its own or otherwise, subsequently
cures such infringement, unless Owner is directed to do so by court order.

                                       49
<PAGE>

     15.4  Vendor's Obligations. The Vendor's obligations under this Section 15
           --------------------
shall not apply to any infringement or violation of Intellectual Property Rights
caused by unauthorized modification of the Products, any System or any component
thereof by the Owner, or arises from adherence to instructions to apply Owner's
trademark, trade name or other company identification to a Product, or any
infringement caused solely by the Owner's use and maintenance of the Products
other than in accordance with the Specifications, except as authorized or
permitted by the Vendor.  The Owner shall indemnify the Vendor against all
liabilities and costs, including reasonable attorneys' fees, for defense and
settlement of any and all claims against the Vendor for infringements or
violations based upon this subsection.

     15.5  Liability of Vendor.  The Liability of Vendor with respect to any and
           -------------------
all claims, actions, proceedings or suits by third parties alleging infringement
of patents, trademarks, or copyrights or violation of trade secrets or
proprietary rights because of, or in connection with, any items furnished
pursuant to this Contract shall be limited to the specific undertakings
contained in this Section 15.

     SECTION 16.  DELAY

     16.1  Liquidated Damages.   The parties agree that damages for delay are
           ------------------
difficult to calculate accurately and not reasonably determinable at the time of
execution of this Contract, and, therefore, agree that liquidated damages (the

"Liquidated Damages") shall be paid for non-performance or late performance of
-------------------
the Vendor's obligations to achieve a Guaranteed Substantial Completion Date for
reasons not otherwise excused by Force Majeure, Owner's failure to satisfy its
obligations set out in this Contact.  The parties agree that Liquidated Damages
are intended to compensate Owner for the delayed or late performance by the
Vendor and are not a penalty.  For purposes of this Contract, Liquidated Damages
means the monetary payments, price discounts, credits and supply of additional
Products described in Section 16.2 below.

     16.2  Delay and Default. In the event the Vendor fails to achieve (other
           -----------------
than as permitted by this Contract) the Substantial Completion of a System on or
before the Guaranteed Substantial Completion Date for such System or during a
ten (10) day cure period following such date, the Vendor shall pay, weekly in
arrears, for the next [*] commencing on the eleventh day after the Guaranteed
Substantial Completion Date, Liquidated Damages to the Owner in an amount equal
to [*] (pro-rated on a daily basis for periods of time less than one week) of
the total amount of all Purchase Orders relating to the System with respect to
which the Vendor has so failed, based on the number of days elapsed after a ten
(10) day cure period following the Guaranteed Substantial Completion Date and
before the achievement of Substantial Completion; provided that in the event
that Substantial Completion is not achieved prior to the expiration of such [*]
period, thereafter Vendor shall pay, weekly in arrears, additional Liquidated
Damages to the Owner in an amount equal to [*] (pro-rated on a daily basis for
periods of time less than one week) of the total amount of all Purchase Orders
relating to the System with respect to which the

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       50
<PAGE>

Vendor has so failed, based on the number of days elapsed after the [*] plus ten
(10) day cure period following the Guaranteed Substantial Completion Date and
before the achievement of Substantial Completion; provided that in no event
shall the amount of such Liquidated Damages so paid in respect of a System
exceed [*] of the total amount of all Purchase Orders relating to the System
with respect to which the Vendor has so failed.

     16.2.1  With respect to Markets 1-13 listed on Exhibit S, if Vendor fails
to achieve Substantial Completion on or by the Guaranteed Substantial Completion
Date, the price for Products to be purchased by Owner for the next System, after
Market 13 listed on Exhibit S, will be reduced by [*] of the prices for Products
(but not Expansions or Services) set forth in the B Exhibits for the System in
which Vendor failed to achieve the Guaranteed Substantial Completion Date, plus
an additional [*] price reduction for each full month thereafter that such
failure to achieve Substantial Completion continues.  For example, if Vendor
achieves Substantial Completion by the Guaranteed Substantial Completion Date in
11 of the original 13 Markets, but one of those Systems is two (2) full months
late and the second of the Systems is one (1) full month late, in achieving
Substantial Completion, then the fourteenth (14th) System to be deployed by
Owner (the first growth market beyond the original 13 Markets) would receive a
discount equal to [*] of the price of the Products (but not Expansions or
Services) purchased by Owner in the twelfth (12th) Market  ([*] discount for
missing the Guaranteed Substantial Completion Date plus [*] discount for missing
the first full month, plus [*] discount for missing the second full month) and
the fifteenth (15th) System to be deployed by Owner would receive a discount
equal to [*] of the price of the Products (but not Expansions or Services)
purchased by Owner in the thirteenth (13th) Market.  The total discount pursuant
to this paragraph applied to the Products purchased for any System shall be
capped at [*] of the price of the Products for the System in which Vendor failed
to achieve the Guaranteed Substantial Completion Date.

     If Vendor fails to achieve Substantial Completion of a System on or before
the Guaranteed Substantial Completion Date with respect to any of the original
13 Systems, at no cost to Owner Vender shall provide all Installation and
Integration Services and Optimization Services, required by Owner, including
Services rendered during overtime and holiday periods, to ensure that
Substantial Completion of the System is accomplished with the utmost expedience.
Vendor will extend the Warranty Period for the Products, excluding Expansions,
to be deployed in each such delayed System, by a period of time that is twice
the duration of the interval between the Guaranteed Substantial Completion Date
and the date Substantial Completion is achieved.  For example, if Substantial
Completion in Memphis occurs two full months after the Guaranteed Substantial
Completion Date, the Warranty Period for the Products initially deployed in
Memphis will be extended for an additional four (4) months.  Vendor will also
provide Owner with a Cell-on-Wheels at no charge for each of the original 13
Systems where Vendor fails to achieve Substantial Completion by the Guaranteed
Substantial Completion Date, and with a credit to be applied for one free base
station to be deployed in any of the growth Systems beyond the original 13
Systems, for each month that Vendor fails to achieve

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       51
<PAGE>

Substantial Completion by the Guaranteed Substantial Completion Date for the
original 13 Systems.  The foregoing Cell-on-Wheels and free base stations will
be configured and equipped (including ancillary and supporting Equipment
associated with a Site) in the same manner as is typical for the other base
stations ordered by Owner for such growth market System.

     16.3  System Capacity Guarantee.  [***]
           -------------------------

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       52
<PAGE>

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       53
<PAGE>

[***]

     16.4  Limitation.  The foregoing provisions concerning Liquidated Damages
           ----------
shall not be deemed to limit the amount payable by the Vendor to the Owner for
breach of contract, except for amounts payable on account of delay as aforesaid,
provided, however that the payment of Liquidated Damages shall be Owner's sole
remedy for the delay giving rise to the Vendor's obligation to pay the
Liquidated Damages.

     16.5  Early Completion Bonus. With respect to a System, Vendor shall be
           ----------------------
entitled to an early completion bonus from the Owner in the event that
Substantial Completion with respect to such System occurs on or prior to the
date that is [*] prior to the Guaranteed Substantial Completion Date for such
System.  Such early completion bonus shall be equal to [*] (pro-rated on a daily
basis for periods of time less than one week) of the total amount of all
Purchase Orders relating to such System, based on the number of days that
Substantial Completion occurs prior the date that is [*] prior to the Guaranteed
Substantial Completion Date for such System.

     SECTION 17.  FORCE MAJEURE

     17.1  Excusable Delay.  (a) If the performance of this Contract, or of any
           ---------------
obligation hereunder except for the obligations set forth in Section 5 is
prevented, restricted or interfered with by reason of fires, breakdown of plant,
labor disputes, embargoes, government ordinances or requirements, civil or
military authorities, acts of God or of the public enemy, acts or omissions of
carriers, inability to obtain necessary materials or services from suppliers, or
other causes beyond the reasonable control of the party whose performance is
affected ("Force Majeure"), then the party affected, upon giving prompt notice
to the other party, shall be excused from such performance on a day-for-day
basis to the extent of such prevention, restriction, or interference (and the
other party shall likewise be excused from performance of its obligations on a
day-for-day basis to the extent such party's obligations relate to the
performance so prevented, restricted or interfered with); provided that the
party so affected shall use reasonable efforts to avoid or remove such cause of
non-performance and both parties shall proceed to perform their obligations with
dispatch whenever such causes are removed or cease.

     (b)  The party claiming the benefit of excusable delay hereunder shall
(i) promptly notify the other party of the circumstances creating the failure or
delay and provide a statement of the impact of such party failure or delay and
(ii) use reasonable

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       54
<PAGE>

efforts to avoid or remove such causes of nonperformance, excusable failure or
delay.  If an event of Force Majeure prevents the Vendor from performing its
obligations under this Contract for a period exceeding sixty (60) days, the
Owner may, upon prior written notice to the other party, terminate this
Contract.

     (c) In the event of a Force Majeure which the party claiming relief for
such event has used all best efforts to resolve in accordance with the terms of
this Contract, upon the written request of either party, the other party shall
in good faith negotiate modifications, to the extent reasonable and necessary,
in scheduling and performance criteria in order to reasonably address the impact
of such Force Majeure.

     SECTION 18.  WARRANTIES

     18.1  Equipment and Services Warranty.  Vendor warrants that, with respect
           -------------------------------
to each System, for a period of two (2) years from the date of Substantial
Completion, provided, however that if prior to Final Acceptance a Major Outage
occurs, the two (2) year period shall be extended by the number of days elapsed
between Substantial Completion and the date the Owner signs the Certificate of
Final Acceptance (as so determined, the "Warranty Period"), all Equipment and
                                         ---------------
Services furnished under this Contract with respect to such System will be free
of Defects and Deficiencies and shall conform to the applicable portions of the
Specifications (the "Equipment and Services Warranty"), provided, however, that
                     -------------------------------
with respect to those Services for which a warranty is set forth in an Exhibit,
the warranty contained in the Exhibit shall supersede the general Services
warranty contained in this Section 18.1.  With respect to third-party
manufactured Products which are not a part of a Core System, Vendor shall
furnish such Products only on a pass-through warranty basis; provided, however,
that Vendor shall identify such Products to Owner before acceptance of any
Purchase Order which includes any such Products.  The terms of the warranty
applicable to such Products shall be provided in an addendum to the Purchase
Order.  Except as noted in the B Exhibits, all Products referenced in the B
Exhibits qualify as Vendor-warranted Products.  The Vendor's obligations with
respect to the Equipment and Services Warranty shall be to attempt first to
repair or replace at no additional cost, any defective Equipment or correct any
deficient Services.  If, after using its best efforts to repair or replace such
Product and after consultation with and with the consent of Owner, which consent
shall not be unreasonably withheld, Vendor determines that it is unable to
repair, replace or otherwise correct such defect, Vendor shall provide a credit
or refund based on the original purchase price, and installation charges if
installed by Vendor.  If, as a result of the Defect and Deficiency, the Product
fails to operate in accordance with the Specifications which causes the System
to fail to materially operate in accordance with its Specifications, a refund
shall be paid to the Owner on account of the purchase price for the total
System, less a pro-rata discount calculated with regard to the period of time
during the Warranty Period that Owner operated the System in Commercial Service.
For purposes of calculating such pro rata discount, the period of time the Owner
would have been able to operate the System in Commercial Service shall be ten
(10) years from Substantial Completion for the 5 ESS(R) switch and seven (7)
years from Substantial Completion for all other Products. In the event that
Vendor pays a refund hereunder, Owner shall return such Products to Vendor at

                                       55
<PAGE>

Vendor's sole cost and expense.  The Warranty Period for all Equipment or
Services repaired, replaced or corrected under the Equipment and Services
Warranty shall be the longer of (i) one (1) year from the date of delivery of
the repaired or replacement Equipment or from the completion of the corrected
Services, as applicable, or (ii) or the unexpired term of the Warranty Period.
The Warranty Period for Equipment purchased as spares shall be two (2) years
from installation of such Equipment.

  For those Products not readily returnable by Owner, or where Owner cannot
remove and reinstall the Products without incurring significant time and
expense, and where Vendor elects to repair or replace the Product, Vendor shall
repair or replace the Product at Owner's Site.  In the event Vendor does the
repair work at Owner's site, Vendor shall be responsible for replacement of
cable and wire Products, and for reasonable Site restoration.  If Vendor has
elected to repair or replace a defective Product, and the Product is readily
returnable by Owner without incurring significant work or expense, Owner is
responsible for removing and reinstalling the Products.  Products returned for
repair or replacement will be accepted by Vendor only in accordance with its
instructions and procedures for such returns.  The transportation expense
associated with returning such Product to Vendor shall be borne by Owner.
Vendor shall pay the cost of transportation of the repaired or replacing Product
to the return destination designated by Owner.  Defective or nonconforming
Products or parts which are replaced hereunder shall become Vendor's property.
Vendor may use either the same or functionally equivalent new, remanufactured,
reconditioned or refurbished Products or parts in the furnishing of repairs or
replacements under this Contract, provided that such Products satisfy the
Specifications.

     18.2  Expansions Warranty.  Vendor warrants that, with respect to Products
           -------------------
and Services constituting Expansions (including Expansions to a System, or
Expansions or growth not part of a System, and all other purchased Products)
furnished under this Contract will be free of Defects and Deficiencies and shall
conform the applicable portions of the Specifications (the "Expansions
                                                            ----------
Warranty").  The warranty period with respect to such Products and Services
--------
shall be two (2) years from the date Owner signs the Notice of Installation and
Integration Certificate (the "Expansions Warranty Period").  With respect to
                              --------------------------
third-party manufactured Products which are not a part of a Core System, Vendor
shall furnish such Products only on a pass-through warranty basis; provided,
however, that Vendor shall identify such Products to Owner before acceptance of
any Purchase Order which includes any such Products.  The terms of the warranty
applicable to such Products shall be provided in an addendum to the Purchase
Order.  Except as noted in the B Exhibits, all Products referenced in the B
Exhibits qualify as Vendor-warranted Products.  The Vendor's obligations with
respect to the Expansions Warranty shall be to attempt first to repair or
replace at no additional cost, any defective Equipment or correct any deficient
Services.  If, after using its best efforts to repair or replace such Product
and after consultation with and with the consent of Owner, which consent shall
not be unreasonably withheld, Vendor determines that it is unable to repair,
replace or otherwise correct such defect, Vendor shall provide a credit or
refund based on the original purchase price, and installation charges if
installed by Vendor. The warranty period for all Equipment or Services repaired,
replaced or corrected under the Expansions Warranty shall be the longer of (i)
one (1) year from the date of delivery of the repaired or replacement Equipment
or

                                       56
<PAGE>

from the completion of the corrected Services, as applicable, or (ii) or the
unexpired term of the Expansions Warranty Period. The Warranty Period for
Equipment purchased as spares shall be two (2) years from installation of such
Equipment.

  For those Products not readily returnable by Owner, or where Owner cannot
remove and reinstall the Products without incurring significant time and
expense, and where Vendor elects to repair or replace the Product, Vendor shall
repair or replace the Product at Owner's Site.  In the event Vendor does the
repair work at Owner's site, Vendor shall be responsible for replacement of
cable and wire Products, and for reasonable Site restoration.  If Vendor has
elected to repair or replace a defective Product, and the Product is readily
returnable by Owner without incurring significant work or expense, Owner is
responsible for removing and reinstalling the Products.  Products returned for
repair or replacement will be accepted by Vendor only in accordance with its
instructions and procedures for such returns.  The transportation expense
associated with returning such Product to Vendor shall be borne by Owner.
Vendor shall pay the cost of transportation of the repaired or replacing Product
to the return destination designated by Owner.  Defective or nonconforming
Products or parts which are replaced hereunder shall become Vendor's property.
Vendor may use either the same or functionally equivalent new, remanufactured,
reconditioned or refurbished Products or parts in the furnishing of repairs or
replacements under this Contract, provided that such Products satisfy the
Specifications.

     18.3  Software Warranty.  Vendor warrants that, with respect to each System
           -----------------
for the Warranty Period, all Software will be free of Defects and Deficiencies
and shall conform to the applicable portions of the Specifications (the
"Software Warranty").  The Vendor's obligations with respect to the Software
------------------
Warranty shall be to attempt first to repair or replace at no additional cost,
any defective Software.  If, after using its best efforts to repair or replace
such Software and after consultation with and with the consent of Owner, which
consent shall not be unreasonably withheld, Vendor determines that it is unable
to repair, replace or otherwise correct such defect, Vendor shall provide a
credit or refund based on the original purchase price, and installation charges
if installed by Vendor. If, as a result of the Defect and Deficiency, the
Software fails to operate in accordance with the Specifications which causes the
System to fail to materially operate in accordance with its Specifications, a
refund shall be paid to Owner on account of the purchase price for the total
System, less a pro rata discount calculated with regard to the period of time
during the Warranty Period that Owner operated the System in Commercial Service.
For purposes of calculating such pro rata discount, the period of time the Owner
would have been able to operate the System in Commercial Service shall be ten
(10) years from Substantial Completion for the 5 ESS(R) switch and seven (7)
years from Substantial Completion for all other Products. In the event that
Vendor pays a refund hereunder, Owner shall return such Products to Vendor. The
warranty period for all Software so corrected or replaced under the Software
Warranty shall be the longer of one (1) year from the date of delivery of the
repaired or replacement Software, or (ii) or the unexpired term of the Warranty
Period. Vendor shall be solely responsible for all costs and expenses incurred
by Owner or Vendor in connection with the de-installation, removal and
transportation of defective Software under the Software Warranty and for the
transportation and installation of repaired, corrected or replacement Software,
including without limitation any additional or upgraded

                                       57
<PAGE>

Equipment or processing capability necessary to run or operate such repaired,
corrected or replacement Software.  The Warranty Period with respect to Software
Maintenance Releases, Software Upgrades, Software Enhancements and Software
Combined Releases shall be two (2) years from the successful installation of
such Software Maintenance Releases, Software Upgrades, Software Combined
Releases and Software Enhancements.

     18.5  Year 2000 Warranty. Vendor warrants that, notwithstanding any other
           ------------------
warranty provided to Owner pursuant to this Contract, during the period
commencing on the date that the applicable Software Warranty Period commences
and ending on January 1, 2004, the Software will (a) process calendar dates
falling on or after January 1, 2000, with substantially the same functionality
as such Software processes calendar dates falling on or before December 31,
1999, and (b) provide substantially the same functionality with respect to the
introduction of records containing dates falling on or after January 1, 2000, as
it provides with respect to the introduction of records containing dates falling
on or before December 31, 1999 (the "Year 2000 Warranty").  All of the foregoing
                                     ------------------
functionality shall be known as "Year 2000 Capability".  In the event Owner has
                                 --------------------
or purchases more than one version of Software, such versions of Software, if
they are intended by Vendor to interoperate, will be compatible and interoperate
in such manner as to process between them, as applicable, date related data
correctly as described herein.  All of the foregoing functionality shall be
known as "Year 2000 Interoperability".  The foregoing sets forth an additional
          --------------------------
warranted specification for Software developed by Vendor that Vendor has
identified as having Year 2000 Capability.  The failure of such Software to meet
such specification during the Year 2000 Warranty Period shall, to the extent the
Software remains then subject to warranty protection, entitle Owner to the
remedies set out in this Section 18.5.  Nothing in the foregoing shall be deemed
to make Vendor responsible for the Year 2000 Capability or Year 2000
Interoperability of any third party software interoperating or intended to
interoperate with Software developed by Vendor.  Owner and or the manufacturer
or other supplier of such third party software shall be responsible for such
compliance and assuring the ability of such software to successfully operate
while interoperating with Software developed by Vendor.

     18.6  Warranty Claim Procedures.  (a) If the Owner claims a breach of any
           -------------------------
warranty, it shall notify the Vendor of the claimed breach within a reasonable
time after its determination that a breach has occurred.  The Owner shall allow
the Vendor to inspect the Equipment, Software, Services, or the System, as the
case may be, on-site in order to effect the necessary repairs.

     (b)  The Vendor shall respond to such warranty claims for warranty Services
in accordance with the procedures outlined in Exhibit N.

     18.7  Technical Assistance.  The Vendor shall maintain a technical
           --------------------
assistance center and shall have technical support available to the Owner in
accordance with the requirements set forth in Exhibit N.

     18.8  Scope of Warranties.  Unless otherwise stated herein, the Warranties
           -------------------
shall not apply to:

                                       58
<PAGE>

                18.8.1 defective conditions or nonconformities to the extent
resulting from the following, if not consistent with applicable Specifications:
unauthorized Owner modifications, misuse, neglect, accident, abuse, improper
wiring, repairing, splicing, alteration, installation, storage or maintenance
failure of Owner to apply previously applicable Vendor modifications or
corrections;

                18.8.2 any Equipment, Services or Software damaged by accident
or disaster, including without limitation, fire, flood, wind, water, lightning
or power failure other than to the extent that any such Equipment, Services or
Software should in accordance with the Specifications be able to withstand any
such events; or

                18.8.3 non-integral items normally consumed in operation or
which has a normal life inherently shorter than the Warranty Periods (e.g.,
                                                                      ----
fuses, lamps, magnetic tape); or

                18.8.4 damages or defects resulting directly from third party
equipment, provided that this shall in no event limit the Vendor's obligations
as to interoperability pursuant to the terms of this Contract;

                18.8.5 Equipment which have had their serial numbers or months
and year of manufacture removed or obliterated by the Owner; or

                18.8.6 failures or deficiencies in BTS performance or System
optimization resulting solely from changed environmental conditions or
unauthorized changes to the System by Owner, or changes not consented to by
Owner including, but not limited to, the growth of trees and other foliage, the
erection of buildings, and interference from third party radio transmissions not
otherwise engineered for by the Vendor;

except when any such damage or defects are made, done or caused by the Vendor or
any of its Subcontractors, their respective agents and employees.

        18.9 Third Party Warranties. If the Vendor purchases or subcontracts for
             ----------------------
the manufacture of any part of a System or the performance of any of the
Services to be provided hereunder from a third party, the warranties given to
the Vendor by such third party shall inure, to the extent assigned to the Owner
pursuant to this Section 18 or permitted by law, to the benefit of the Owner,
and the Owner shall have the right, at its sole discretion, to enforce such
warranties directly and/or through the Vendor. The warranties of such third
parties shall be in addition to and shall not, unless otherwise expressly stated
herein, be in lieu of any warranties given by the Vendor under this Contract.

        18.10 Additional Sites. In the event that under the remedy provisions of
              ----------------
this Section 18 the Vendor is required to provide additional MSC and/or BTS's
requiring additional Sites, the Owner shall be responsible for all Site
Acquisition.

                                       59
<PAGE>

        18.11 EXCLUSIVE REMEDIES. THE FOREGOING EQUIPMENT, SERVICES, SOFTWARE
              ------------------
AND EXPANSIONS WARRANTIES AND REMEDIES ARE EXCLUSIVE FOR THE PURPOSES OF ANY
BREACH BY THE VENDOR OF ANY SUCH WARRANTY AND ARE IN LIEU OF ALL OTHER EXPRESS
AND IMPLIED WARRANTIES, INCLUDING BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

        SECTION 19.  INSURANCE

        19.1 Insurance. The Vendor shall maintain insurance in accordance with
             ---------
the provisions set forth in Exhibit Q.

        SECTION 20.  INDEMNIFICATION AND LIMITATION OF LIABILITY

        20.1  Indemnity.  Vendor agrees to indemnify, defend and hold harmless
              ---------
Owner and its affiliates and their respective directors, officers, employees,
agents, successors and assigns, from Losses and threatened Losses arising from,
in connection with, or based on allegations of, any of the following:

        (a)  Vendor's failure to observe or perform any duties or obligations
             to Subcontractors or any third parties within the reasonable
             contemplation of this Contract;

        (b)  the death or bodily injury of any agent, employee, customer,
             business invitee or any other person caused by the tortious conduct
             (including without limitation negligence, willful misconduct or
             breach of warranty) or strict liability of Vendor, any
             Subcontractor or its or their respective employees, contractors,
             agents or representatives;

        (c)  the damage, loss or destruction of any real or tangible personal
             property caused by the tortious conduct (including without
             limitation negligence, willful misconduct or breach of warranty) or
             strict liability of Vendor, any Subcontractor or its or their
             respective employees, contractors, agents or representatives; or

        (d)  any claim, demand, charge, action, cause of action or other
             proceeding asserted against Owner but arising out of or resulting
             from an act or omission of Vendor, any Subcontractor or its or
             their respective employees, contractors, agents or representatives
             in its or their respective capacities as an employer.

        20.2 Claim for Losses. If a Claim is to be made by a party entitled to
             ----------------
indemnification hereunder against the Vendor, the party claiming such
indemnification

                                       60
<PAGE>

shall give a Claim Notice to the Vendor as soon as practicable after the party
entitled to indemnification becomes aware of any fact, condition or event which
may give rise to Losses for which indemnification may be sought under this
Agreement, provided, however, no delay on the part of the Owner in notifying the
Vendor shall relieve the Vendor from any obligation hereunder unless (and then
solely to the extent) the Vendor is thereby materially prejudiced.  If any
lawsuit or enforcement action is filed against any party entitled to the benefit
of indemnity hereunder, written notice thereof shall be given to the Vendor as
promptly as practicable (and in any event within fifteen (15) calendar days
after the service of the citation or summons).  The Vendor shall be entitled, if
it so elects, (i) to defend such lawsuit or action, (ii) to employ and engage
attorneys of its own choice to handle and defend the same, at the Vendor's cost,
risk and expense, and (iii) to compromise or settle such Claim, which compromise
or settlement shall be made only with the written consent of the Owner (which
may not be unreasonably withheld), unless such compromise or settlement includes
an unconditional release of any claims against the Owner in which event such
written consent of the Owner shall not be required.  If the Vendor fails to
assume the defense of such Claim within fifteen (15) calendar days after receipt
of the Claim Notice, the Owner against which such Claim has been asserted will
(upon delivering notice to such effect to the Vendor) have the right to
undertake, at the Vendor's cost and expense, the defense, compromise or
settlement of such Claim on behalf of and for the account and risk of the
Vendor.  In the event the Owner assumes the defense of the Claim, the Owner will
keep the Vendor reasonably informed of the progress of any such defense,
compromise or settlement.  The Vendor shall be liable for any settlement of any
action effected pursuant to and in accordance with this Agreement and for any
final judgment (subject to any right of appeal), and the Vendor agrees to
indemnify and hold harmless the Owner from and against any Losses by reason of
such settlement or judgment.

        20.3 Limitation On Liability. THE ENTIRE LIABILITY OF VENDOR FOR ANY
             -----------------------
CLAIM, LOSS, DAMAGE OR EXPENSE OF OWNER OR ANY OTHER ENTITY ARISING OUT OF THIS
CONTRACT, OR THE USE OR PERFORMANCE OF ANY PRODUCT OR SERVICE, WHETHER IN AN
ACTION FOR OR ARISING OUT OF BREACH OF CONTRACT OR TORT, INCLUDING NEGLIGENCE,
INDEMNITY OR STRICT LIABILITY, SHALL BE EXPRESSLY SET FORTH HEREIN AND AS
FOLLOWS:

     1. FOR INFRINGEMENT, THE REMEDIES SET FORTH IN SECTION 15;

     2. FOR THE NON-PERFORMANCE OF PRODUCTS OR SERVICES DURING THE WARRANTY
        PERIOD, THE REMEDIES SET FORTH IN THE APPLICABLE CLAUSE OF SECTION 18;

     3. FOR DELAYS ATTRIBUTABLE TO FAILURE TO ACHIEVE A GUARANTEED SUBSTANTIAL
        COMPLETION DATE OR FAILURE TO SATISFY THE CAPACITY GUARANTEE, THE
        REMEDIES SET FORTH IN SECTION 16; PROVIDED THAT THE AGGREGATE OF THE
        DAMAGES WITH RESPECT TO THE FOREGOING SHALL NOT

                                       61
<PAGE>

        EXCEED AN AMOUNT EQUAL TO [*] OF THE AGGREGATE AMOUNTS OF ALL PURCHASE
        ORDERS WITH RESPECT TO ALL SYSTEMS; AND PROVIDED FURTHER THAT FOR
        PURPOSES OF QUANTIFYING THE DAMAGES FOR A FAILURE TO SATISFY THE
        CAPACITY GUARANTEE, THE ADDITIONAL EQUIPMENT FURNISHED BY THE VENDOR AT
        NO CHARGE TO THE OWNER SHALL BE VALUED AT THE PURCHASE PRICES FOR SUCH
        EQUIPMENT SET FORTH IN THIS CONTRACT AND, AS SO VALUED, SHALL BE DEEMED
        TO BE DAMAGES FOR PURPOSES OF THIS SUBSECTION; AND

     4. EXCEPT AS PROVIDED IN PARAGRAPH 5 BELOW, FOR EVERYTHING OTHER THAN AS
        SET FORTH ABOVE, VENDOR'S TOTAL LIABILITY TO THE OWNER, WHETHER IN
        CONTRACT OR IN TORT (INCLUDING BREACH OF WARRANTY, NEGLIGENCE AND
        STRICT LIABILITY) SHALL BE LIMITED TO AN AMOUNT EQUAL TO [*] OF THE
        AGGREGATE AMOUNT OF ALL PURCHASE ORDERS ISSUED UNDER THIS CONTRACT.

     5. THE LIMITATION SET FORTH IN PARAGRAPH 4 ABOVE SHALL NOT APPLY WITH
        RESPECT TO (i) CLAIMS OF BREACH OF CONFIDENTIALITY, (ii) CLAIMS
        SUBJECT TO INDEMNIFICATION PURSUANT TO SUBSECTION 20.1 ABOVE OR PATENT
        INFRINGEMENT PROVISIONS OF THIS CONTRACT, OR (iii)  FAILURE TO COMPLY
        WITH APPLICABLE LAWS.

     6. NOTWITHSTANDING ANY OTHER PROVISION OF THIS CONTRACT, NEITHER PARTY,
        NOR THEIR AFFILIATES NOR THEIR EMPLOYEES, DIRECTORS, OFFICERS AND
        SUPPLIERS SHALL BE LIABLE FOR THE OTHER PARTY'S INDIRECT, INCIDENTAL
        OR CONSEQUENTIAL DAMAGES OR LOST PROFITS, REVENUES OR SAVINGS ARISING
        OUT OF THIS CONTRACT OR THE USE OR PERFORMANCE OF ANY PRODUCTS OR
        SERVICES OR, EXCEPT AS SET FORTH ABOVE, FOR DAMAGES IN EXCESS OF THE
        AGGREGATE AMOUNT OF ALL PAYMENTS MADE TO THE VENDOR HEREUNDER.  THIS
        CLAUSE SHALL SURVIVE FAILURE OF AN EXCLUSIVE OR LIMITED REMEDY.

        SECTION 21.  REPRESENTATIONS AND WARRANTIES

        21.1 Representations and Warranties of the Parties. The parties hereby
             ---------------------------------------------
represent and warrant as follows:

                21.1.1 Due Organization. Each party represents and warrants to
                       ----------------
the other party that the representing party is a corporation duly incorporated,
validly existing

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment.  The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       62
<PAGE>

and in good standing under the laws of the State of Delaware and has all
requisite corporate power and authority to own and operate its business and
properties and to carry on its business as such business is now being conducted
and is duly qualified to do business in all jurisdictions in which the
transaction of its business in connection with the performance of its
obligations under this Contract makes such qualification necessary or required.

                21.1.2 Due Authorization; Binding Obligation. Each party
                       -------------------------------------
represents and warrants to the other party that the representing party has full
corporate power and authority to execute and deliver this Contract and to
perform its obligations hereunder, and the execution, delivery and performance
of this Contract by the representing party have been duly authorized by all
necessary corporate action on the part of the party; this Contract has been duly
executed and delivered by such party and is the valid and binding obligation of
the party enforceable in accordance with its terms, except as enforcement
thereof may be limited by or with respect to the following: (i) applicable
insolvency, moratorium, bankruptcy, fraudulent conveyance and other similar laws
of general application relating to or affecting the rights and remedies of
creditors; (ii) application of equitable principles (whether enforcement is
sought in proceedings in equity or at law); and (iii) provided the remedy of
specific enforcement or of injunctive relief is subject to the discretion of the
court before which any proceeding therefore may be brought.

                21.1.3 Non-Contravention. Each party represents and warrants to
                       -----------------
the other party that the execution, delivery and performance of this Contract by
the representing party and the consummation of the transactions contemplated
hereby will not contravene its certificate of incorporation or by-laws and will
not conflict with or result in (i) a breach of or default under any material
indenture, mortgage, lease, agreement, instrument, judgment, decree, order or
ruling applicable to it or by which it or any of its properties is bound or
affected, or (ii) a breach by the representing party of any Applicable Law.

                21.1.4 Regulatory Approvals. Vendor represents and warrants to
                       --------------------
Owner that all authorizations by, approvals or orders by, consents of, notices
to, filings with or other acts by or in respect of any Governmental Entity or
any other Person required in connection with the execution, delivery and
performance of this Contract by the Vendor have been obtained or shall be
obtained in due course.

                21.1.5 Non-Infringement. Vendor represents and warrants to Owner
                       ----------------
that to the best of Vendor's knowledge after reasonable investigation, as of the
Effective Date there are no actual claims or threatened or actual suits in
connection with patents or other Intellectual Property Rights that could
materially adversely affect it's the Vendor's ability to perform its obligations
under this Contract.

                21.1.7 Requisite Knowledge. Vendor represents and warrants to
                       -------------------
Owner that that Vendor has all requisite knowledge, know-how, skill, expertise
and experience to satisfy its obligations in accordance with the terms of this
Contract.

                                       63
<PAGE>

                21.1.8 Financial Capacity. Vendor represents and warrants to
                       ------------------
Owner that Vendor has the financial, management and manufacturing capacity and
capabilities to satisfy its obligations in a timely manner in accordance with
the terms of this Contract.

        SECTION 22.  TITLE AND RISK OF LOSS

        22.1 Title. Title to Equipment shall pass to the Owner upon shipment of
             -----
such Equipment to the location specified in the Exhibits.

        22.2 Risk of Loss. Except as otherwise provided in Section 5.1 (a)(ii),
             ------------
Risk of loss or damage of any Products furnished to the Owner in connection with
this Contract shall pass from the Vendor to the Owner upon the later of (i)
delivery of such Products to the Sites; or, (ii) if Vendor is responsible for
Site Preparation, the date of the Site Preparation Substantial Completion
Certificate; provided that during the period a party has the risk of loss or
damage to an item, nothing in this Section 22.2 shall relieve the other party of
responsibility for loss or damage to the item resulting from the acts or
omissions of the other party, its employees, or agents.

        SECTION 23.  DISPUTE RESOLUTION

        23.1 Dispute Resolution. In the event any controversy, claim, dispute,
             ------------------
difference or misunderstanding between the Owner and the Vendor arises out of or
relates to this Contract, any term or condition hereof, any of the Work to be
performed hereunder or in connection herewith, each party shall designate
managers to meet and negotiate in good faith in an attempt to amicably resolve
such controversy, claim, dispute, difference or misunderstanding in writing.
Such managers shall meet for this purpose within ten (10) Business Days, or such
other time period mutually agreed to by the parties, after written notice from
either party. If the parties are unable to resolve the controversy, claim,
dispute, difference or misunderstanding through good faith negotiations within
ten (10) Business Days after such meeting or meetings, each party shall, within
five (5) Business Days after the expiration of such ten (10) Business Day
period, prepare a written position statement which summarizes the unresolved
issues and such party's proposed resolution. Such position statement shall be
delivered by the Vendor to the Owner's Chief Executive Officer and by the Owner
to the Vendor's corresponding officer or representative for resolution within
(5) Business Days, or such other time period mutually agreed to by the parties.

        23.2 Tolling. All applicable statutes of limitation shall be tolled to
             -------
the extent permitted by Applicable Law while the dispute resolution procedures
specified in this Section 23.2 are pending, and nothing herein shall be deemed
to bar any party from taking such action as the party may reasonably deem to be
required to effectuate such tolling.

                                       64
<PAGE>

        SECTION 24.  TERMINATION AND EVENTS OF DEFAULT

        24.1 Termination Without Cause. The Owner may, at its sole option,
             -------------------------
terminate this Contract, in its entirety, for convenience upon ninety (90) days'
prior written notice at any time. Any Purchase Orders issued prior to any such
termination above shall remain in effect and shall be fulfilled to the extent
that such orders are outstanding as of the date of such termination. In the
event that at the time of such termination the aggregate amount of all Purchase
Orders delivered to Vendor under this Contract (the "Aggregate Purchase Orders")
                                                     -------------------------
is less than One Hundred Million Dollars ($100,000,000), Owner shall pay to the
Vendor the lesser of (i) the difference between One Hundred Million Dollars
($100,000,000) and the Aggregate Purchase Orders; or (ii) the aggregate amounts
of the Products and Services furnished by Vendor pursuant to Exhibits B-2 and
B-3 prior to the date of such termination.

        24.2 Termination for Cause. The Owner shall have the right to terminate
             ---------------------
this Contract in its entirety (except as otherwise set forth in clause (g)
below) without any penalty or payment obligation, except as provided in
subsection 24.5 below, upon the occurrence of any of the events of default (each
a "Vendor Event of Default") as set forth below:
   -----------------------

        (a)  the Vendor (i) files a voluntary petition in bankruptcy or has an
involuntary petition in bankruptcy filed against it that is not dismissed within
sixty (60) days of such involuntary filing, (ii) admits the material allegations
of any petition in bankruptcy filed against it, (iii) is adjudged bankrupt, (iv)
is unable generally to pay its debts as they mature,  (v) makes a general
assignment for the benefit of its creditors, or if a receiver is appointed for
all or a substantial portion of its assets and is not discharged within sixty
(60) days after his appointment, or (vi) the Vendor commences any proceeding for
relief from its creditors in any court under any state insolvency statutes; or

        (b)  the Vendor disregards or violates any Applicable Laws or Applicable
Permits which has a material adverse effect on the business, financial condition
or operations of Owner or on any of its Systems ("Material Adverse Effect"); or
                                                  -----------------------

        (c)  the Vendor allows material Defects and Deficiencies to exist; or

        (d)  the Vendor fails to fulfill its obligations with respect to the
satisfaction, discharge or bonding of liens as set forth herein; or

        (e) the Vendor abandons or ceases for a period in excess of thirty (30)
days its performance of the Work (except as a result of Force Majeure or a
casualty which is fully covered by insurance or as to which other provisions
reasonably acceptable to the Owner are being diligently pursued); or

        (f) the Vendor assigns or subcontracts Work other than as provided for
in this Contract which has a Material Adverse Effect; or

                                       65
<PAGE>

        (g) the Vendor misses the Guaranteed Substantial Completion Date for any
given System by a period in excess of one hundred-fifty (150) days; provided
                                                                    --------
that in such case the Owner shall have the right, but not the obligation, to
----
terminate this Contract with respect to only that System in which such delay
occurred; and provided further that such failure to achieve such date was not
caused by (i) a Force Majeure event and/or (ii) any act or omission of the
Owner; or

        (h) if an event of Force Majeure prevents the Vendor from performing its
obligations under this Contract for a period exceeding sixty (60) days, the
Owner may, upon prior written notice to the Vendor, terminate this Contract in
accordance with the Force Majeure provisions above; or

        (i) the Vendor otherwise materially breaches any provision of this
Contract.

        24.3 Remedies. (a) If any of the Vendor Events of Default exists, the
             --------
Owner may, in addition to and without prejudice to any other rights or remedies
of the Owner in this Contract or at law or in equity, terminate this Contract
upon written notice to the Vendor; provided, however, that the Owner shall have
first provided to the Vendor the following periods of notice and opportunity to
cure:

                (i)  in the case of a Vendor Event of Default specified in the
     foregoing clauses (a) or (b), no notice or opportunity to cure shall be
     required from the Owner; and

                (ii) in the case of any other Vendor Event of Default, the Owner
     shall have provided thirty (30) days' prior written notice, and the Vendor
     shall have failed (i) to commence to cure the default within five (5)
     Business Days of delivery of such notice, and (ii) to diligently pursue
     such cure and remedy the breach entirely.

        (b)  If the Owner elects to terminate this Contract, the Owner may, in
addition to and without prejudice to any other rights or remedies of the Owner
in this Contract or of law or in equity, do one or more of the following:

                (i)  require Vendor, at no additional charge to Owner, to
     complete or assist others with the completion of all ordered but unfinished
     Work, including the sharing with Owner and others all relevant engineering
     and design data, procurement data, manufacturing data, construction and
     erection data, start-up and testing data, materials, and Products that
     shall become part of such unfinished System and/or the specified Systems,
     which Vendor would otherwise have been required to deliver to Owner
     pursuant to the terms of this Contract but for the breach, under reasonably
     appropriate non-disclosure agreements; or

                (ii)  direct that the Vendor assign its Subcontractor agreements
     to the Owner without any change of price or conditions therein or penalty
     or payment therefor.

                                       66
<PAGE>

        (c)  In the event of any termination of this Contract by Owner in
     connection with a Vendor Event of Default, Owner shall have no liability
     for any failure to satisfy the Minimum Purchase Commitment prior to such
     termination.

        24.4 Discontinuance of Work. Upon such notification of termination, the
             ----------------------
Vendor shall immediately discontinue all of the Work (unless such notice of
termination directs otherwise), and, as more fully set forth in subsection
24.3(b), deliver to the Owner copies of all data, drawings, specifications,
reports, estimates, summaries, and such other information, and materials as may
have been accumulated by the Vendor in performing the Work, whether completed or
in process, which Vendor would otherwise have been required to deliver to Owner
pursuant to this Contract but for the breach. Furthermore, the Vendor shall
assign, assemble and deliver to the Owner all purchase orders and Subcontractor
agreements requested by the Owner.

        24.5 Payments. If the Owner terminates this Contract pursuant to
             --------
subsection 24.2, the Vendor shall not be entitled to receive further payment
other than payments due and payable under this Contract and not subject to
dispute prior to such termination (provided that any such disputed amounts shall
                                   -------- ----
be paid by the Owner when and if such dispute is in fact resolved).
Notwithstanding anything herein to the contrary, the Owner may withhold
payments, if any, to the Vendor for the purposes of offset of amounts owed to
the Owner pursuant to the terms of this Contract until such time as the exact
amount of damages due the Owner from the Vendor is fully determined by a court
of competent jurisdiction.

        24.6 Continuing Obligations. Termination of this Contract for any reason
             ----------------------
(i) shall not relieve either party of its obligations with respect to the
confidentiality of the Proprietary Information as set forth in subsection 26.18,
(ii) shall not relieve either party of any obligation which applies to it and
which expressly or by implication survives termination, and (iii) except as
otherwise provided in any provision of this Contract expressly limiting the
liability of either party, shall not relieve either party of any obligations or
liabilities for loss or damage to the other party arising out of or caused by
acts or omissions of such party prior to the effectiveness of such termination
or arising out of its obligations as to portions of the Work already performed
or of obligations assumed by the Vendor prior to the date of such termination.

        24.7  Vendor's Right to Terminate.  The Vendor shall have the option to
              ---------------------------
terminate this Contract without any penalty or payment obligations, other than
undisputed payment obligations outstanding as of the date of any such
termination pursuant to the terms of this Contract if:

        (a)  the Owner (i) files a voluntary petition in bankruptcy or has an
involuntary petition in bankruptcy filed against it that is not dismissed within
sixty (60) days of such involuntary filing, (ii) admits the material allegations
of any petition in bankruptcy filed against it, (iii) is adjudged bankrupt, (iv)
makes a general assignment for the benefit of its creditors, or if a receiver is
appointed for all or a substantial portion of its assets and is not

                                       67
<PAGE>

discharged within sixty (60) days after his appointment, or (v) commences any
proceeding for relief from its creditors in any court under any state insolvency
statutes, and any such filing, proceeding, adjudication or assignment as
described herein above shall otherwise materially impair the Owner's ability to
perform its obligations under this Contract; or

        (b) the Owner fails to make payments of undisputed amounts due to the
Vendor pursuant to the terms of this Contract which are more than sixty (60)
days overdue, provided that such failure has continued for at least thirty (30)
              -------- ----
days after the Vendor has notified the Owner of its right and intent to so
terminate on account of such overdue amount; and provided, further, that such
failure to make undisputed payments to Vendor shall not arise out of or relate
to a termination of or credit restrictions under the Vendor Financing, or

        (c) the Owner materially breaches any provision of this Contract other
than a breach to which Section 24.7(b) is applicable, and after the Vendor
having provided thirty (30) days' prior written notice, the Owner shall have
failed (i) to commence to cure the default within five (5) Business Days of
delivery of such notice, and (ii) to diligently pursue such cure and remedy the
breach entirely.

        24.8 Special Termination Events. (a) In the event that funds sufficient
             --------------------------
to finance Owner's obligations under this Contract are not available to Owner
under the Vendor Financing as a result of the limitations imposed by Vendor by
the definition of Available Commitment in the Vendor Financing, then i) each
party's obligation to perform shall be suspended except for those obligations
contained in Sections 2.8, 12, 13, 14, 15, 16.3, 18, 19, 20, 23, 24, and 26, or
as otherwise required by law, and ii) if the cap remains in place for more than
thirty (30) days, Owner shall be released from any obligations to purchase
Equipment and Services under this Contract.

        (b) If at any time after the Effective Date any material change shall
have occurred in any Applicable Law or in the interpretation thereof by any
Governmental Entity, or there shall be rendered any decision in any judicial or
administrative case or proceeding, in either case which, in the reasonable
opinion of the Owner would make the Owner's use of any part of any System
illegal or would subject the Owner or any of its Affiliates to any material
penalty, other material liability or onerous condition or to any burdensome
regulation by any Governmental Entity or otherwise render the use of such System
economically nonviable, then, with respect to such System, or affected part
thereof, or with respect to all Systems if so affected, the Owner may terminate
this Contract without charge or penalty of any kind; provided that (i) the Owner
                                                     -------- ----
gives the Vendor prior written notice of any such change or decision and (ii)
that the Owner uses its reasonable efforts for a reasonable time to reverse or
ameliorate such change or decision to the extent possible or practical prior to
declaring such termination. In the event of a termination pursuant to this
subsection, payment obligations incurred by the Owner for Work actually done or
Products or Services actually delivered by the Vendor prior to such termination
pursuant to this Contract shall be payable by the Owner to the Vendor on the
same terms and subject to the limitations set forth in subsection 24.8(a) above.

                                       68
<PAGE>

        SECTION 25.  SUSPENSION

        25.1 Owner's Right to Suspend Work. The Owner may at any time issue a
             -----------------------------
Change Order to the Vendor to suspend all or any part of the Work for such
period of time as the Owner may reasonably determine to be appropriate. Any such
Change Order shall be handled in accordance with the provisions of Section 11
hereof.

        SECTION 26.  MISCELLANEOUS

        26.1 Amendments. The terms and conditions of this Contract may only be
             ----------
amended by mutually agreed contract amendments. Each amendment shall be in
writing and shall identify the provisions to be changed and the changes to be
made. Contract amendments shall be signed by duly authorized representatives of
each of the Vendor and the Owner.

        26.2 Owner Liabilities. Vendor understands and agrees that no third
             -----------------
party shall guarantee or otherwise be in any way liable with respect to any
obligations or liabilities of the Owner or any of its affiliates pursuant to
this Contract.

        26.3 Offset. The Vendor hereby waives any right of offset of amounts
             ------
owed by the Owner to the Vendor pursuant to the terms of this Contract.

        26.4 Assignment. The Owner may assign this Contract, or any part hereof,
             ----------
to any affiliate of Owner without the Vendor's approval or consent. Subject to
the foregoing and except as otherwise permitted herein, neither this Contract
nor any portion hereof may be assigned by either party without the express prior
written consent of the other party. The Owner may, without the consent of the
Vendor, collaterally assign its rights hereunder (including, but not limited to,
all licenses with respect to the Software) to any or all parties providing
financing for any part of a System for the benefit of the Vendor and one or more
other entities providing financing for any part of a System or similar
arrangement for the benefit of the Vendor and one or more other entities
providing for the financing for any part of a System, in either case, which
arrangement, as the case may be, is reasonably acceptable to the Vendor in
accordance with the terms of the financing documents. If requested by the Owner,
the Vendor shall within seven (7) calendar days of such request provide a
written consent to any such assignment; provided that such consent shall permit
                                        -------- ----
reassignment if the financing parties exercise their remedies under the
documents for such financing subject to reasonable standards as to (i) the
creditworthiness of the assignee and (ii) the fact that the assignee is not at
such time a direct competitor of the Vendor involved in the manufacture of
communications equipment, software or related services. The foregoing rights and
obligations are in addition to those set forth elsewhere in this Contract. Any
attempted assignment in violation of the terms of this Contract shall be null
and void. Subject to the foregoing, this Contract shall bind and inure to the
benefit of the parties to this Contract, their successors and permitted assigns.

                                       69
<PAGE>

        26.5 Notices. Except as otherwise expressly stated herein, all notices,
             -------
requests, demands and other communications which are required or may be given
under this Contract shall be in writing and shall be deemed to have been duly
given when received if personally delivered; when transmitted if transmitted by
telecopy, electronic or digital transmission method; the day after it is sent,
if sent for next day delivery to a domestic address by recognized overnight
delivery service; and three (3) days after sending, if sent by certified or
registered mail, postage prepaid, return receipt requested. All notices (except
for those regarding the completion of Services and acceptance of Systems and
Service, which shall be delivered to the Owner's Regional Director in the region
to which the notice pertains) shall be addressed as follows:

        If to the Owner:

                  CRICKET COMMUNICATIONS, INC.
                  10307 Pacific Center Court
                  San Diego, California  92121
                  Attention: Chief Executive Officer

                  With a copy to:
                  Sr. Vice President, General Counsel
                  10307 Pacific Center Court
                  San Diego, California 92121

                  Telephone: (858) 882-6000
                  Facsimile: (858) 882-6080

        If to the Vendor:

                  Lucent Technologies Inc.
                  5440 Millstream Road
                  Room E2N32
                  Mcleansville, NC 27301

                  Attention: Contract Manager
                  Telephone: (336) 279-5971
                  Facsimile:  (336) 279-6544

By written notice provided pursuant to this subsection, either party may change
its designated addressee for purposes of giving notices under this Contract.

        26.6 Governing Law. This Contract is governed by the laws of the State
             -------------
of California, without regard to principles of conflict of laws. This Contract
shall be deemed to be made and executed in the State of California.

                                       70
<PAGE>

        26.7 Remedies. Subject only to the limitations on liability contained in
             --------
Section 20.3, each party shall be entitled to pursue any and all rights and
remedies that are available at law or in equity.

        26.8 Consent to Jurisdiction. Each party to this Contract, by its
             -----------------------
execution hereof, (i) hereby irrevocably submits to the exclusive jurisdiction
of the United States District Court located in the Southern District of
California or the state courts of the State of California located in San Diego,
California for the purpose of any action, claim, cause of action or suit (in
contract, tort or otherwise), inquiry, proceeding or investigation arising out
of or based upon this Contract or relating to the subject matter hereof, (ii)
hereby waives, to the extent not prohibited by applicable law, and agrees not to
assert, by way of motion, as a defense or otherwise, in any such action, any
claim that it is not subject personally to the jurisdiction of the above-named
courts, that its property is exempt or immune from attachment or execution,
that-any such proceeding brought in one of the above-named courts is improper,
or that this Contract or the subject matter hereof may not be enforced in or by
such court, and (iii) hereby agrees not to commence any action, claim, cause of
action or suit (in contract, tort or otherwise), inquiry, proceeding or
investigation arising out of or based upon this Contract or relating to the
subject matter hereof other than before one of the above-named courts nor to
make any motion or take any other action seeking or intending to cause the
transfer or removal of any such action, claim, cause of action or suit (in
contract, tort or otherwise), inquiry, proceeding or investigation to any court
other than one of the above-named courts whether on the grounds of inconvenient
forum or otherwise. Each party hereby consents to service of process in any such
proceeding in any manner permitted by California law, and agrees that service of
process by registered or certified mail, return receipt requested, at its
address specified herein.

        26.9 Compliance with Law. The Owner and the Vendor shall (a) comply with
             -------------------
all Applicable Laws in the performance of this Contract, including, without
limitation, the laws and regulations of the United States Department of
Commerce, State Department and the Federal Communications Commission and any
other applicable agency or department.

        26.10 Headings. The headings given to the Sections and subsections
              --------
herein are inserted only for convenience and are in no way to be construed as
part of this Contract or as a limitation of the scope of the particular Section
or subsection to which the title refers.

        26.11 Severability. Whenever possible, each provision of this Contract
              ------------
shall be interpreted in such a manner as to be effective and valid under such
applicable law, but, if any provision of this Contract shall be held to be
prohibited or invalid in any jurisdiction, the remaining provisions of this
Contract shall remain in full force and effect and such prohibited or invalid
provision shall remain in effect in any jurisdiction in which it is not
prohibited or invalid.

        26.12 Waiver. Unless otherwise specifically provided by the terms of
              ------
this Contract, no delay or failure to exercise a right resulting from any breach
of this Contract

                                       71
<PAGE>

shall impair such right or shall be construed to be a waiver thereof, but such
right may be exercised from time to time as may be deemed expedient.  If any
representation, warranty or covenant contained in this Contract is breached by
either party and thereafter waived by the other party, such waiver shall be
limited to the particular breach so waived and not be deemed to waive any other
breach under this Contract.

        26.13 Public Statements and Advertising. (a) Neither party shall issue
              ---------------------------------
any public statement (or any private statement unless required in the
performance of the Work) relating to or in any way disclosing any aspect of the
Work or any System including the scope, the specific terms of this Contract,
extent or value of the Work or any System. Express written consent of the other
party is required prior to the invitation of or permission to any reporter or
journalist to enter upon the System or any part thereof. The Vendor agrees not
to use for publicity purposes any photographs, drawings and/or materials
describing any System without obtaining the prior written consent of the Owner,
which consent shall not be unreasonably withheld. The Owner agrees not to use
for publicity purposes any photographs, drawings and/or materials describing the
Vendor's products and services without obtaining the prior written consent of
the Vendor, which consent shall not be unreasonably withheld. This subsection
shall not prohibit the provision of necessary information to prospective
Subcontractors and the Vendor's or the Owner's personnel, agents or consultants
or other disclosures which are required by Applicable Law, including without
limitation federal and state securities laws and regulations. All other such
public disclosures by a party require the written consent of the other party.

        (b) Each party shall submit to the other proposed copies of all
advertising (other than public statements or press releases) wherein the name,
trademark or service mark of the other party or its affiliates is mentioned; and
neither party shall publish or use such advertising without the other party's
prior written approval. Such approval shall be granted as promptly as possible
and shall not be unreasonably withheld. The parties acknowledge that the
obtaining of prior written approval for each such use pursuant to this
subsection may be an administrative burden. At the request of either party, the
Owner and the Vendor shall establish mutually acceptable guidelines for the uses
specified therein. Such guidelines shall be subject to change from time to time
at the reasonable request of either party.

        26.14 Records and Communications. Procedures for keeping and
              --------------------------
distributing orderly and complete records of the Work and its progress are
stated in the Exhibits. The procedures so established shall be followed
throughout the course of the Work unless the Owner and the Vendor mutually agree
in advance in writing to revise the procedures. Procedures for communications
among the Owner and the Vendor are stated in the Exhibits. The procedures so
established shall be followed throughout the course of the Work unless the Owner
and the Vendor mutually agree in advance and in writing to revise such
procedure.

        26.15 Ownership of Specifications. The Specifications shall constitute
              ---------------------------
the Proprietary Information of each party to the extent of each party's
contribution to the Specifications. Neither party shall use those parts of the
Specifications contributed by the

                                       72
<PAGE>

other party or any part of the Proprietary Information of the other party for
any purpose other than fulfilling or exercising their respective rights or
obligations under this Agreement.

        26.16 Financing Requirements. The Vendor acknowledges that the
              ----------------------
attainment of financing for construction of the System may be subject to
conditions that are customary and appropriate for the providers of such
financing. Therefore, the Vendor agrees to promptly consider any reasonable
amendment to or modification or assignment of this Contract required by such
providers (including, without limitation, any pertinent industrial development
authority or other similar governmental agency issuing bonds for financing of
the System) which do not materially modify the scope of the Vendor's Work in
order to obtain such financing. In the event that any such amendment or
modification materially increases the Vendor's risk or costs hereunder, the
Owner and the Vendor shall negotiate in good faith to adjust pricing matters,
and to equitably adjust such other provisions of this Contract, if any, which
may be affected thereby, to the extent necessary to reflect such increased risk
or costs. In no event shall the Vendor be required to accept any modification or
amendment pursuant to this subsection, providing Vendor has a commercially
reasonable basis for such refusal.

        26.17 Owner Review, Comment and Approval. To the extent that various
              ----------------------------------
provisions of this Contract provide for the Owner's review, comment, inspection,
evaluation, recommendation or approval, the Owner may at its option do so in
conjunction and/or consultation with the Vendor. To the extent that this
Contract requires the Owner to submit, furnish, provide or deliver to the Vendor
any report, notice, Change Order, request or other items, the Owner may at its
option and upon written notice to the Vendor designate a representative to
submit, furnish, provide or deliver such items as the Owner's agent therefor. To
the extent that various provisions of this Contract provide that the Owner may
order, direct or make requests with respect to performance of the Work or is
provided access to the System sites or any other site, the Owner may at its
option and upon written notice to the Vendor authorize a representative to act
as the Owner's agent therefor. Upon receipt of such notice, the Vendor shall be
entitled to rely upon such authorization until the Vendor receives a superseding
written notice from the Owner.

        26.18 Confidentiality. (a) All information which is identified as
              ---------------
proprietary or confidential by the disclosing party, including without
limitation all oral and written information (including, but not limited to,
determinations or reports by arbitrators pursuant to the terms of this
Contract), disclosed to the other party is deemed to be confidential, restricted
and proprietary to the disclosing party (hereinafter referred to as "Proprietary
                                                                     -----------
Information"). Each party agrees to use the Proprietary Information received
-----------
from the other party only for the purpose of this Contract. Except as specified
in this Contract, no other rights, and particularly licenses, to trademarks,
inventions, copyrights, patents, or any other intellectual property rights are
implied or granted under this Contract or by the conveying of Proprietary
Information between the parties. Proprietary Information supplied is not to be
reproduced in any form except as required to accomplish the intent of, and in
accordance with the terms of, this Contract. The receiving party shall provide
the same care to avoid disclosure or unauthorized use of Proprietary Information
as it provides to protect its own similar proprietary information but in no
event shall the receiving party fail to use

                                       73
<PAGE>

reasonable care under the circumstances to avoid disclosure or unauthorized use
of Proprietary Information.  All Proprietary Information shall be retained by
the receiving party in a secure place with access limited to only such of the
receiving party's employees, subcontractors or agents who need to know such
information for purposes of this Contract and to such third parties as the
disclosing party has consented to by prior written approval.  All Proprietary
Information, unless otherwise specified in writing (i) remains the property of
the disclosing party, (ii) shall be used by the receiving party only for the
purpose for which it was intended, and (iii) such Proprietary Information,
including all copies of such information, shall be returned to the disclosing
party or destroyed after the receiving party's need for it has expired or upon
request of the disclosing party, and, in any event, upon termination of this
Contract.  At the request of the disclosing party, the receiving party shall
furnish a certificate of an officer of the receiving party certifying that
Proprietary Information not returned to disclosing party has been destroyed.
For the purposes hereof, Proprietary Information does not include information
which:

                (i) is published or is otherwise in the public domain through no
     fault of the receiving party at the time of any claimed disclosure or
     unauthorized use by the receiving party;

                (ii) prior to disclosure pursuant to this Contract is properly
     within the legitimate possession of the receiving party as evidenced by
     reasonable documentation to the extent applicable;

                (iii) subsequent to disclosure pursuant to this Contract is
     lawfully received from a third party having rights in the information
     without restriction of the third party's right to disseminate the
     information and without notice of any restriction against its further
     disclosure;

                (iv)  is independently developed by the receiving party or is
     otherwise received through parties who have not had, either directly or
     indirectly, access to or knowledge of such Proprietary Information;

                (v)  is transmitted to the receiving party after the disclosing
     party has received written notice from the receiving party after
     termination or expiration of this Contract that it does not desire to
     receive further Proprietary Information;

                (vi)  is obligated to be produced under order of a court of
     competent jurisdiction or other similar requirement of a Governmental
     Entity, so long as the party required to disclose the information provides
     the other party with prior notice of such order or requirement and its
     cooperation to the extent reasonable in preserving its confidentiality; or

                (vii)  the disclosing party agrees in writing is free of such
     restrictions.

                                       74
<PAGE>

        (b) Because damages may be difficult to ascertain, the parties agree,
     without limiting any other rights and remedies specified herein, an
     injunction may be sought against the party who has breached or threatened
     to breach this subsection. Each party represents and warrants that it has
     the right to disclose all Proprietary Information which it has disclosed to
     the other party pursuant to this Contract, and each party agrees to
     indemnify and hold harmless the other from all claims by a third party
     related to the wrongful disclosure of such third party's proprietary
     information.

        26.19 Entirety of Contract; No Oral Change. This Contract and the
              ------------------------------------
Exhibits and Schedules referenced herein constitute the entire contract between
the parties with respect to the subject matter hereof, and supersede all
proposals, oral or written, all previous negotiations, and all other
communications between the parties with respect to the subject matter hereof. No
modifications, alterations or waivers of any provisions herein contained shall
be binding on the parties hereto unless evidenced in writing signed by duly
authorized representatives of both parties as set forth in this Contract.

        26.20 Relationship of the Parties. Nothing in this Contract shall be
              ---------------------------
deemed to constitute either party a partner, agent or legal representative of
the other party, or to create any fiduciary relationship between the parties.
The Vendor is and shall remain an independent contractor in the performance of
this Contract, maintaining complete control of its personnel, workers,
Subcontractors and operations required for performance of the Work. This
Contract shall not be construed to create any relationship, contractual or
otherwise, between the Owner and any Subcontractor, except to establish Owner as
a third party beneficiary of the Vendor's contacts with Subcontractors as
provided herein.

        26.21 Discretion. Notwithstanding anything contained herein to the
              ----------
contrary, to the extent that various provisions of this Contract call for an
exercise of discretion in making decisions or granting approvals or consents,
the parties shall be required to exercise such discretion, decision or approvals
and in good faith.

        26.22 Non-Recourse. No past, present or future limited or general
              ------------
partner in or of the Owner, no parent or other affiliate of any company
comprising the Owner, and no officer, employee, servant, executive, director,
agent or authorized representative of any of them (each, an "Operative") shall
                                                             ---------
be liable by virtue of the direct or indirect ownership interest of such
Operative in the Owner for payments due under this Contract or for the
performance of any obligation, or breach of any representation or warranty made
by the Owner hereunder. The sole recourse of the Vendor for satisfaction of the
obligations of the Owner under this Contract shall be against the Owner and the
Owner's assets and not against any Operative or any assets or property of any
such Operative. In the event that a default occurs in connection with such
obligations, no action shall be brought against any such Operative by virtue of
its direct or indirect ownership interest in the Owner.

        26.23  Improvements, Inventions and Innovations.  All rights in any
               ----------------------------------------
improvements, inventions, and innovations made solely by the Owner shall vest in
the Owner, and the Owner and its affiliates shall have the right to exploit such
improvements, inventions, and innovations.  All rights in any improvements,
inventions and innovations

                                       75
<PAGE>

made solely by the Vendor shall vest in the Vendor, and the Vendor and its
affiliates shall have the right to exploit such improvements, inventions and
innovations.  All rights in any improvements, inventions and innovations made by
the substantial contribution of both parties ("Joint Information") shall vest
                                               -----------------
jointly in both parties. Joint Information does not include any underlying
information owned by one of the parties prior to commencement of such joint
activities or developed beyond the scope of such joint activities, including
Products and Product information, technical information or inventions developed
prior to the commencement of any joint activities, developed outside of the
scope of such joint activities or developed solely by either party.  The rights
of joint ownership to such Joint Information shall be rights of full non-
exclusive worldwide ownership, including rights to license and transfer.  Each
party may exploit its rights to the Joint Information independent of the other
and may retain all economic benefits thereof, neither party shall have any
obligation to account to the other for profits derived from the Joint
Information and each party shall have full rights to enforce the Joint
Information intellectual property rights against non-authorized users.

        26.24 Attachments and Incorporations. All Schedules and Exhibits
              ------------------------------
attached hereto, are hereby incorporated by reference herein and made a part of
this Contract with the same force and effect as though set forth in their
entirety herein.

        26.25 Conflicts. In the event of any conflict or inconsistency among the
              ---------
provisions of this Contract and the documents attached hereto and incorporated
herein, such conflict or inconsistency shall be resolved by giving precedence to
this Contract and thereafter to the Exhibits, Schedules and Specifications.

        26.26 References to Certain Sources. Reference to standard
              -----------------------------
specifications, manuals or codes of any technical society, organization or
association or to the laws or regulations of any Governmental Entity, whether
such reference is specific or by implication, by this Contract, means the latest
standard specification, manual, code, laws or regulations in effect at the time
of such reference, except as may be otherwise specifically agreed to by the
Owner. However, no provision of any reference, standard, specification, manual
or code (whether or not specifically incorporated by reference in this Contract)
shall be effective to change the duties and responsibilities of the Owner or the
Vendor from those set forth in this Contract; provided that nothing contained in
                                              -------- ----
this Contract shall require the Owner or the Vendor to violate then existing and
enforceable Applicable Laws.

        26.27 Counterparts. This Contract may be executed by one or more of the
              ------------
parties to this Contract on any number of separate counterparts, and all of said
counterparts taken together shall be deemed to constitute one and the same
instrument.

        26.28 Cooperation. Vendor acknowledges that Owner may have one or more
              -----------
third party vendors, contractors and other personnel engaged to provide work,
equipment or services to Owner in connection with or related to this Contract.
Vendor agrees to reasonably communicate and cooperate with such third parties at
all times and, at the request of Owner, coordinate Vendor's and Vendor's
Subcontractors' activities hereunder with the activities of such third parties.

                                       76
<PAGE>

        26.29 Survival. Notwithstanding any expiration or termination of this
              --------
Contract, the provisions of Sections 2.8, 12, 13, 14, 15, 18, 20 and 26.18 shall
continue in full force and effect.

        THE OWNER AND THE VENDOR HAVE READ THIS CONTRACT INCLUDING ALL SCHEDULES
AND EXHIBITS HERETO AND AGREE TO BE BOUND BY ALL THE TERMS AND CONDITIONS HEREOF
AND THEREOF.

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

                                            VENDOR:

                                            LUCENT TECHNOLOGIES INC,
                                            a Delaware corporation

                                            By:  /s/  Charles M. Many
                                               --------------------------
                                                 Name:  Charles M. Many
                                                 Title:  V.P. Sales

                                            OWNER:

                                            CRICKET COMMUNICATIONS, INC.,
                                            a Delaware corporation

                                            By:  /s/  S.G. Swenson
                                               -----------------------
                                                 Name:  S.G. Swenson
                                                 Title:  President and C.E.O.

                                       77
<PAGE>

                                   EXHIBIT A
                                    to the
                         CRICKET COMMUNICATIONS, INC.
                      SYSTEM EQUIPMENT PURCHASE AGREEMENT

                              SYSTEM DESCRIPTION

Lucent Technologies, Inc. shall provide PCS 1900 mhz CDMA equipment, including
MSCs, ECPs, AP's, and base stations for deployment in Cricket Communications,
Inc.'s wireless network in the C through F bands.
<PAGE>

    Exhibit B to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                 Discount Structure for Cricket Communications

 [Twenty-One Pages of Pricing Lists Deleted Pursuant to Confidential Treatment
                                    Request]
<PAGE>

   Exhibit B-1 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                             Flexent BTS Equipment

[Nine Pages of Pricing Lists Deleted Pursuant to Confidential Treatment Request]
<PAGE>

    Exhibit B-2 to the Cricket Communication, Inc. System Equipment Purchase
                                   Agreement

                         PCS CDMA System for Nashville
                           Discounted Pricing Summary

   [Eleven Pages of Pricing Lists Deleted Pursuant to Confidential Treatment
                                    Request]
<PAGE>

   Exhibit B-3 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                        PCS CDMA System for Chattanooga
                           Discounted Pricing Summary

   [Twelve Pages of Pricing Lists Deleted Pursuant to Confidential Treatment
                                    Request]
<PAGE>

   Exhibit B-4 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                           Voice Processing Proposal
            Year One:  [*] Mailboxes (2000) New System Hardware Kit
                                (Nashville, TN)

 [Thirty-Nine Pages of Pricing Lists Deleted Pursuant to Confidential Treatment
                                    Request]

[*] Certain material (indicated by asterisk) has been omitted from this document
pursuant to a request for confidential treatment. The omitted material has been
filed separately with the Securities and Exchange Commission.

<PAGE>

   Exhibit B-5 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                     Annual Release Maintenance Fee (ARMF)

     [Six Pages of Text Deleted Pursuant to Confidential Treatment Request]
<PAGE>

   Exhibit B-6 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                           Software Feature Packages

  [One Page of Pricing Information Deleted Pursuant to Confidential Treatment
                                    Request]
<PAGE>

   Exhibit B-7 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                                Services Prices

    [Thirteen Pages of Pricing Information Deleted Pursuant to Confidential
                               Treatment Request]
<PAGE>

   Exhibit B-8 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

  [One Hundred and Six Pages of Pricing Lists Deleted Pursuant to Confidential
                               Treatment Request]
<PAGE>

    Exhibit C to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

   [Eleven Pages of Pricing Lists Deleted Pursuant to Confidential Treatment
                                    Request]
<PAGE>

    Exhibit D to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                       RF Engineering and Design Pricing

 [Seven Pages of Pricing Information Deleted Pursuant to Confidential Treatment
                                    Request]
<PAGE>

                                                                     EXHIBIT E-1
Agency Plan for Outsourced Material Cricket Communications ENHANCED SERVICES
ADDENDUM
                                                                    May 16, 2000

Lucent's Agency Plan for Third Party Material Procurement

Lucent's Agency Plan is a value-added option made available to wireless
customers purchasing enhanced services from Lucent's Wireless Professional
Services organization.  This section provides a description of the plan and the
benefits to Wireless Operators.

Overview

Contracting with Lucent Technologies to provide Construction Management Services
in the deployment of a PCS system extends to Cricket Communications the
advantage of using the Lucent Agency Plan.  A value-added aspect of the Lucent's
Wireless Professional Services Offer, the Lucent Agency Plan offers the
convenience of a completely mechanized materials management system and extends
to Cricket Communications Lucent's negotiated market level discounts on third-
party material with no additional mark-up.  Participation in the Agency Plan
results in a more effectively managed project using materials which have been
selected with Lucent's technical expertise and purchased by Cricket
Communications at market level discounts at significant savings over traditional
prices.

1.0  Plan Process - Stocked Materials

By engaging Lucent Technologies Construction Management Services, Cricket
Communications is eligible to receive Lucent's market level discounts and to
receive the benefits of a site materials management system designed specifically
for the Wireless Industry.  The process by which the plan is enacted and Cricket
Communications benefits is described below.

a.  The process begins when the Wireless Operator issues Lucent a letter of
agency, authorizing Lucent to conduct negotiations with Agency Subcontractors
that are suppliers of PCS materials, including Sprint North Supply and other
parties mutually agreed to by Lucent and Cricket, and to arrange for pricing,
manufacturing, and delivery schedules with third-party vendors.

b.  After receipt of a letter of agency, Lucent's Wireless Professional Services
team performs a technical evaluation to determine gross cable, antenna,
microwave equipment, tower, associated material requirements.  Forecasts are
prepared to distributors and vendors to firm availability and delivery dates.

c.  During the engineering phase of the project, Lucent's Construction Manager
will prepare detailed material lists, using the RF design criteria to properly
size feeder cables, connectors.  Lucent's exclusive PCS Configurator Software
will measure calculated performance of the antenna feeder system against RF
Design criteria and will immediately flag any deviations for corrective action.
The resultant engineered material lists will be consistent with the RF Design.

d.  Using the material list provided by Lucent, Cricket prepares a purchase
order and submits it to the Agency Subcontractor, using the Lucent Discount
Schedule.

e.  On receipt of the purchase order, the Agency Subcontractor assembles site
kits based on specifications provided by Lucent and ships the kitted material to
the job site.  The material is held at the nearest distribution center serving
Cricket's Market(s) until released for shipment by the Lucent Construction
Manager.  The Agency Subcontractor will be prepared to ship stocked

                        Lucent Technologies Proprietary
               This document contains proprietary information of
       Lucent Technologies and is not to be disclosed or used except in
                    accordance with applicable agreements.
                                  Page 1 of 5
<PAGE>

                                                                     EXHIBIT E-1
Agency Plan for Outsourced Material Cricket Communications ENHANCED SERVICES
ADDENDUM
                                                                    May 16, 2000

orders from inventory within 24 hours of receipt of order.  During the period of
time that the site materials are held at the distribution center, no staging or
warehousing costs are incurred.  The Lucent Construction Manager will take full
advantage of this option to employ the benefits of just in time material
management.  Orders will be delivered to Cricket designated site locations forty
eight (48) business hours following confirmation of the ship request from the
Lucent Construction Manager.

f.  In the event that items are required which are not currently stocked, the
Agency Subcontractor is empowered to seek discounted pricing on Lucent's behalf
from Lucent-approved vendors and will strive to achieve scheduling which will
result in twenty four (24) to forty eight (48) hour delivery of product.
Stocked material will ship FOB Destination at the fixed discounted rate,
eliminating variable shipping costs for Cricket Communications.

The attached discount schedule reflects Cricket's discount for stocked materials
delivered to Cricket's markets.

g.  Cricket will be invoiced for materials upon shipment.  Material invoices
will be reviewed by the Lucent Construction Manager for an "OK to Pay" prior to
payment to the Agency Subcontractor by Cricket.

h.  All material status is tracked using an MS-Access database which is updated
from the Agency Subcontractor's central material tracking system.  The client
software produces all material management reports and provides daily status of
site materials.  At the completion of the project, Lucent will turn the database
over to Cricket for their use for on-going material management.

In conjunction with Lucent's Construction Management Services, Cricket
Communications will continue to receive Lucent's stocked material discounts from
the Lucent designated Agency Subcontractor following completion of the
construction of Cricket's network.  This feature will enable Cricket to acquire
additional materials needed for maintenance and/or growth at the same discount
levels applied during the initial build.

2.0  Materials and Equipment Not Stocked by Distributor

The process for handling non-stocked materials, such as towers, anchor bolts,
customized steel components, shelters, microwave radio equipment, and related
items is similar, with the major exception that these items are generally drop
shipped from the point of manufacture and incur transportation and applicable
warehousing charges.  Lucent's wireless customers will, however, receive
Lucent's negotiated discounts for these items with no additional markup.

As with stocked items, Lucent's construction managers will manage the logistics
associated with tracking the material and coordinating delivery to the job site
or Cricket Communications' warehouse facility.  The availability intervals for
non-stocked items are based solely on vendor manufacturing intervals and
availability.  Lucent will act in good faith to obtain the best availability for
such items.

                        Lucent Technologies Proprietary
               This document contains proprietary information of
       Lucent Technologies and is not to be disclosed or used except in
                    accordance with applicable agreements.
                                  Page 2 of 5
<PAGE>

                                                                     EXHIBIT E-1
Agency Plan for Outsourced Material Cricket Communications ENHANCED SERVICES
ADDENDUM
                                                                    May 16, 2000

3.0  Materials, Equipment and Services not Included in the Plan

Equipment manufactured by Lucent Technologies or supplied by Lucent as part of
an OEM contract with a third party supplier, or other pre-existing agreement,
and supplier financed equipment and services are not included in the plan.
Material and equipment otherwise qualified for provisioning under the Agency
Plan may not qualify if prohibited under the terms of a separate financing
agreement.

4.0  Roles and Responsibilities

The roles and responsibilities of Lucent, the Agency Subcontractor, and Cricket
Communications are described as follows:

Lucent - As an agent of Cricket Communications, Lucent Construction Services is
------
responsible for the engineering and the preparation of detailed bills of
materials in accordance with the network RF design criteria.  Lucent will
perform material management and will review Agency Subcontractor's invoices
prior to payment.

Agency Subcontractor - The Agency Subcontractor is responsible for procurement,
stock, material management, warehousing, order assembly, shipping,
transportation, tracking and reporting, material invoicing and asset tracking
for stocked items.

Cricket - Cricket Communications is responsible for providing Lucent with a
-------
letter of agency, the timely issuance of purchase orders to the Agency
Subcontractor / Vendor(s) based on Lucent's prepared Bill of Materials, and for
payment of material invoices.  Cricket is also required to pay transportation
and provide temporary storage for non-stocked items.

5.0  Designated Distributor

Lucent's designated Agency Subcontractor is Sprint North Supply and other
parties mutually agreed to by Lucent and Cricket.

6.0  Discount Schedule

Refer to the attached discount schedule for Cricket's percentage discount off of
current advertised list price.  Included is a typical Bill of Materials produced
by Lucent's PCS Configurator software tool.

                        Lucent Technologies Proprietary
               This document contains proprietary information of
       Lucent Technologies and is not to be disclosed or used except in
                    accordance with applicable agreements.
                                  Page 3 of 5
<PAGE>

                                                                     EXHIBIT E-1
Agency Plan for Outsourced Material Cricket Communications ENHANCED SERVICES
ADDENDUM
                                                                    May 16, 2000

MATERIAL MANAGEMENT - LUCENT Technologies' AGENCY PLAN

By engaging Lucent Technologies' Construction Management Services, Cricket
Communications qualifies to participate in Lucent Technologies' Agency Plan for
third party (Non-Lucent Technologies) material provisioning.  The material
management process identities qualified suppliers, material lists for each cell
site, order and material tracking, staging, coordination of deliveries and
reporting.  Upon completion of the project, a database of information will be
furnished to Cricket Communications.

If Cricket Communications elects to participate in Lucent Technologies' Agency
Plan, Lucent Technologies will perform these material management tasks at no
additional fee only in conjunction with Lucent Technologies' established Agency
Plan process.  Participation in this plan by Cricket Communications is optional.

Agency Subcontractor - Stocked Material Items

Lucent Technologies will designate the participating Agency Subcontractor for
stocked material items.  Stocked items include: Antennas, Tilt Brackets, Coaxial
Cables, Coaxial Connectors, Electrical and Telecom Pedestals, Grounding Kits,
Jumper Cables, Weather Seal Kits, Coaxial cable hanger kits, Angle Adapters,
Hoisting Grips and hardware kits.

Third Party Vendors - Non-Stocked Material Items

Lucent Technologies will assemble a list of recommended third party vendors for
non-stocked material items for review and approval by Cricket Communications.
Non-Stocked material items include towers, tower anchor bolts, anchor bolt
templates, shelters, galvanized steel components and hardware, antenna mounting
steel, tower modification steel, electronic equipment, BTS mounting frames and
civil construction materials not furnished with the site construction.

Stocked Material Items - Forecast

Lucent Technologies will prepare and submit a forecast to the participating
Agency Subcontractor for stocked materials required for installation in Cricket
Communications network.

Material List Compilation

Upon completion of the construction drawings and consistent with the RF Design
and Lucent Technologies BTS equipment requirements, Lucent Technologies will
develop detailed lists of material required to construct each cell site.

Purchase Order Approval

Lucent Technologies will submit detailed material lists, with costs, to Cricket
Communications for approval.  Material costs will be based on Lucent
Technologies' market level discounts through the Lucent Technologies designated
Agency Subcontractor for stocked items and quoted discounted pricing from third
party vendors for non-stocked items.

Purchase Order Submission

Cricket Communications will submit purchase orders to the Agency Subcontractor
and third party vendor(s) for procurement and delivery to Cricket Communications
sites, storage facility or staging area.

                        Lucent Technologies Proprietary
               This document contains proprietary information of
       Lucent Technologies and is not to be disclosed or used except in
                    accordance with applicable agreements.
                                  Page 4 of 5
<PAGE>

                                                                     EXHIBIT E-1
Agency Plan for Outsourced Material Cricket Communications ENHANCED SERVICES
ADDENDUM
                                                                    May 16, 2000

Material Staging - Items Stocked by Lucent Technologies' Designated Agency
Subcontractor

Stocked material items will be staged at a distribution center within 48
business hours travel distance by standard overland freight.  Stocked materials
will be staged by site and will be available for shipment within twenty four
(24) hours after receipt of a valid purchase order.

Material - Items Not Stocked and Procured Directly from Other Vendors

Lucent Technologies make reasonable efforts to coordinate shipments and
deliveries of materials to direct to Cricket Communications sites to coincide
with site installation requirements.  Availability intervals will be as
specified by each supplier.

Material Tracking

Lucent Technologies will track the status of all ordered materials, stock and
non-stock, from the time valid purchase orders are received by the Agency
Subcontractor / vendor(s) and entered into the material tracking database
system.  All materials provisioned in accordance with the Agency Plan will be
added to the tracking database and coordinated by Lucent Technologies'
Construction Manager(s).  Lucent Technologies' Construction Manager(s) will
prepare and submit periodic reports detailing the status of all materials in the
tracking system.  At the end of construction, Cricket Communications will be
furnished with an electronic copy of the data.

Transportation Costs

Stocked materials shipped by Lucent Technologies' participating Agency
Subcontractor are shipped F.O.B. destination from the nearest distribution
center, and incur no added transportation costs.  Transportation costs for non-
stocked materials will be billed directly to Cricket Communications by third
party vendor(s) in accordance with the purchasing agreements established between
Cricket Communications and each vendor.

Invoice Approval and Payment

Lucent Technologies will review Agency Subcontractor invoices prior to payment
by Cricket Communications to check that items invoiced were ordered, shipped and
delivered in good condition.  Lucent Technologies will check invoice costs
against established current discount schedules.  Lucent Technologies will
provide preliminarily approved invoices to Cricket Communications for
evaluation, final approval, and payment.

                        Lucent Technologies Proprietary
               This document contains proprietary information of
       Lucent Technologies and is not to be disclosed or used except in
                    accordance with applicable agreements.
                                  Page 5 of 5
<PAGE>

   Exhibit E-2A to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

      Scope of Work - Construction Management - Mobile Switch Center (MSC)

  [Three Pages of Technical Information Text Deleted Pursuant to Confidential
                               Treatment Request]
<PAGE>

   Exhibit E-2B to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

                    Scope of Work - Construction Management

   [Four Pages of Technical Information Text Deleted Pursuant to Confidential
                               Treatment Request]
<PAGE>

   Exhibit E-3A to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

                     Scope of Work - Construction Services

   [Four Pages of Technical Information Text Deleted Pursuant to Confidential
                               Treatment Request]
<PAGE>

  Exhibit E-3B to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

                 Statement of Work - MSC Construction Services

  [Three Pages of Technical Information Text Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

  Exhibit E-4A to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

       Scope of Work - Architectural & Engineering Services - MLA Sites

   [Two Pages of Technical Information Text Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

  Exhibit E-4B to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

     Scope of Work - Architectural & Engineering Services - Non MLA Sites

   [Two Pages of Technical Information Text Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

  Exhibit E-4C to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

         Statement of Work - MSC Architectural & Engineering Services

  [Four Pages of Technical Information Text Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

  Exhibit E-5A to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

                    Scope of Work - Pre-Deployment Services

   [Two Pages of Technical Information Text Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

  Exhibit E-5B to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

       Scope of Work - Site Acquisition and Zoning Services - MLA Sites

   [Two Pages of Technical Information Text Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

  Exhibit E-5C to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

      Scope of Work - Site Acquisition and Zoning Services - Non MLA Site

  [Three Pages of Technical Information Text Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

  Exhibit E-5D to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

            Scope of Work - Site Acquisition - Mobile Switch Center

  [Three Pages of Technical Information Text Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

   Exhibit E-6 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

                    Spectrum Clearing / Microwave Relocation

   [Four Pages of Technical Information Text Deleted Pursuant to Confidential
                               Treatment Request]
<PAGE>

   Exhibit E-7 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Lucent Technologies

              Scope of Work - Overall Program / Project Management

    [One Page of Technical Information Text Deleted Pursuant to Confidential
                               Treatment Request]
<PAGE>

   Exhibit E-8 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

             Network Planning and Design Services Statement of Work

    [One Page of Technical Information Text Deleted Pursuant to Confidential
                               Treatment Request]
<PAGE>

   Exhibit E-9 to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                                  NetworkCare

                          Statement of Work Agreement

  [Three Pages of Technical Information Text Deleted Pursuant to Confidential
                               Treatment Request]
<PAGE>

                                   EXHIBIT F

BTS & MSC INSTALLATION

I.  STATEMENT OF WORK

    1.  GENERAL

The purpose of this section is to describe Owner's and Vendor's responsibilities
for the ordering, scheduling, transport, warehousing, testing, delivery,
installation and acceptance of BTS and or MSC equipment at one or more sites
secured by Owner as part of its RF Network design for a market.  In no case
should this document supersede the terms and conditions of the base contract.
Both parties shall use best efforts to individually and jointly complete
activities identified in the following narrative and matrices to accomplish the
installation of all BTS' and associated materials to insure the timely and
efficient operation of the Owner's network.

    2.  RESPONSIBILITIES

        b.     Owner

               (1). Prior to install - Owner shall, using a "just-in-time"
                    ----------------
               delivery philosophy, issue purchase orders for BTS' and MSC' and
               related equipment to the Vendor.  Owner shall provide Vendor a
               copy of the Network Design for review by Vendor and incorporation
               into the production design of equipment for the individual site.
               Owner shall insure through separate contracts that all local
               permits and approvals have been secured for the installation of
               Vendor's equipment at a cell site.  All Owner provided antennas,
               jumper and coax shall be installed and swept prior to or at the
               time of BTS' equipment installation.  All Owner installed power,
               grounding and air conditioning shall be installed prior to or
               contemporaneous with the time of MSC/OEM equipment installation
               to meet Vendor's written specifications.  Power and telco shall
               have been ordered and either installed or scheduled for
               installation at the site.  A ground ring and bar shall be
               provided to meet Vendor's written specifications.  Access and
               staging areas shall be secured for use by Vendor to carry out
               their responsibilities.

               (2). During install - Owner shall make available technical staff
                    --------------
               to monitor installation, review and conduct such operational
               tests as may be agreed upon by Owner and Vendor as part of this
               installation activity.  Owner shall make available, as required,
               subcontractors to carry out such modifications to the
               positioning, placement or replacement of antennas, positioning,
               placement or replacement of existing equipment, cables, coaxial
               cable and power distribution systems as may be required by Seller
               to carry out the installation and optimization of their equipment
               at the site required by Vendor to carry out the optimization of
               the site.

               (3). Post install - Owner shall conduct mutually agreed to tests
                    ------------
               and inspections deemed necessary in order to accept the
               installation and operation of the site including review of any
               and all tests and procedures conducted by Vendor as part of the
               installation process.

          a.   Vendor

               (1). Prior to install - Vendor shall schedule the production,
                    ----------------
               transport, delivery to any warehousing facilities required by
               Vendor and delivery to and lifting at the cell site pad in
               conformance with Owner's site specifications.

               (2). During install - Vendor shall provide technical staff and
                    --------------
               materials to carry out the provisioning, transport, lifting,
               installation, testing, optimization and acceptance of BTS, and
               related equipment (bottom jumpers, RFFE's/LNA's, GPS antennas and
               coax, power and telco cables to the demarc, etc.) or MSC and
               related equipment at the site.

               (3). Post install - Vendor shall provide to Owner written results
                    ------------
               (or in other format as maybe mutually agreed upon) of all
               installation and testing conducted on the site together with all
               operational parameters set on the equipment during installation,
               optimization and integration process for the site.

                                  Page 1 of 5
<PAGE>

     3.  EXECUTION PLAN

     Vendor shall develop an execution plan for review and acceptance by Owner
     that outlines, in detail, the Scope of Work, Project Team, Schedule,
     Reporting Provisions, Quality Control functions and the Process for Change
     orders to be utilized both for the overall project and the installation of
     the all specified equipment at a cell site.  The execution plan shall be
     provided by Vendor to Owner and approved by Owner, in writing, prior to the
     start of installation.

     4.  PROJECT TEAM

     Vendor shall provide a detailed staffing plan by name, job function,
     schedule, contact phone numbers together with a reporting hierarchy for the
     teams assigned to BTS installation.  The project team shall be reviewed
     with and approved by Owner to determine adequacy of numbers and job
     categories to carry out the complete project BTS installation schedule
     within the mutually agreed upon schedule and price.

     Owner shall provide a staffing plan outlining points of contact, decision
     making authority and staff availability for the duration of the
     installation project.

     5.  SCHEDULE

     Vendor shall provide in a mutually agreed to format, both hard copy and
     electronic, an installation schedule that includes all agreed upon project
     activities, deliverables, timetables, task prerequisites,
     interdependencies, staffing, etc.

     6.  REPORTING PROVISIONS

     Vendor shall provide written reports in a mutually agreed to format.  This
     schedule shall be prepared as a baseline and shall be upgraded against the
     baseline not less often than once per week to demonstrate adherence to the
     project schedule.  In addition, more frequent reports shall be made by
     Vendor to keep Owner informed of any problems which may impact schedule
     adherence or which may require a change order from this Scope of Work.

     7.  CHANGE ORDERS

     In the event that site conditions deviate from those represented by Owner
     to the Vendor and which may have a significant cost impact, Vendor shall
     prepare for review and approval by Owner prior to implementation of the
     change, a written change request for Owner's approval.  This request shall
     outline the assumptions made prior to the request, the changes found which
     necessitate the request, the cost or time deviations resulting from the
     current conditions and a cost associated with the request.  Owner shall
     have 24 hours to approve or deny the request.

II.  RESPONSIBILITY MATRIX

     See Attached Excel Spreadsheet

III.  ACCEPTANCE CRITERIA

     Vendor shall provide to Owner its Standard Plan outlining criteria for
     acceptance of installation of BTS equipment as complete prior to and for
     inclusion in the final contract documents.  This

                                  Page 2 of 5
<PAGE>

     Standard Plan shall, by incorporation, become a part of this agreement and
     shall include at a minimum: Verification of Sweep tests, equipment
     settings, all serial numbers, end-to-end test results of telephone
     circuits, all manuals and documentation for the equipment, serial numbers,
     etc.  Acceptance of equipment installation by Owner shall not imply
     acceptance of equipment performance individually or in the aggregate.

IV.  WARRANTIES

     Vendor agrees to perform Services in a workmanlike manner and in accordance
     with good usage and accepted practices in the community in which such
     Services are performed using material free from Defects except where such
     material is specified or provided by Owner.  If Services performed by
     Vendor prove not to be performed in accordance with this Warranty and if
     Owner notifies Vendor of this failure within a thirty (30) days period
     commencing on the date of completion of the Service, Vendor, at its option,
     either will correct all Defects or Deficiencies or render a full or
     prorated refund or credit based on the original charge for the Services.

     THE FOREGOING SERVICES WARRANTIES ARE IN ADDITION TO THOSE STATED IN
     SECTION 18.2 OF THE CONTRACT AND ARE IN LIEU OF ALL OTHER IMPLIED
     WARRANTIES INCLUDING, BUT NOT LIMITED TO, WARRANTIES OF MERCHANTIBILITY AND
     FITNESS FOR A PARTICULAR PURPOSE.

                                  Page 3 of 5
<PAGE>

   [Two Pages of Technical Information Text Deleted Pursuant to Confidential
                              Treatment Request]

                                  Page 4 of 5
<PAGE>

    Exhibit G to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                           Network Owner Acceptance
                  Substantial Completion Reference Documents

 [Twenty Pages of Technical Information Text Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

                                   EXHIBIT H

                                    to the

                         CRICKET COMMUNICATIONS, INC.

                      SYSTEM EQUIPMENT PURCHASE AGREEMENT

                          Network Reliability Center

                              Product Description

                                 August, 1999

                       Lucent Technologies Proprietary               Page 1 of 6
                     Use Pursuant to Company Instructions
<PAGE>

[Five Pages of Product Description Information Deleted Pursuant to Confidential
                               Treatment Request]

                       Lucent Technologies Proprietary               Page 2 of 6
                     Use Pursuant to Company Instructions
<PAGE>

                                                             Lucent Technologies

                              AutoPACE(TM) System

                              PRODUCT DESCRIPTION

                                 INTRODUCTION

The AutoPACET(TM) System provides performance management and some aspects of
configuration management for Lucent Technologies wireless systems.  This
software tool can be used for monitoring and maintaining or improving system
performance, troubleshooting, capacity planning, and, in general, engineering a
Lucent Technologies wireless system to provide peak quality of service.  New
releases of the AutoPACE System are issued approximately twice a year to support
new ECP and cell site software releases and to provide new features and
capabilities.  The current release is AutoPACE 13.01.

General Background

The AutoPACE System is a second generation tool that has evolved over more than
10 years.  Strongly driven by user input, it was developed to enhance and
replace the performance analysis software package introduced in 1987 in response
to an assessment of the needs of AUTOPLEX System operators.

Performance analysis is required to monitor and maintain (or improve) the
quality of service once a system is operational.  Performance analysis can
indicate aspects of a system that are

Exhibit I                     Lucent Technologies                   Page 1 of 22
                                 January 1999
<PAGE>

not operating at acceptable levels due either to design deficiencies,
hardware/software failures, or the growth of the system and/or subscriber base.

AutoPACE System Benefits

The major benefits of the AutoPACE System are:

 .  A Graphical User Interface (GUI), implemented under Microsoft(R)/1/
   Windows(TM)/2/

 .  A client-server architecture that supports a common data source for multiple
   users

 .  Single server support for multiple systems and systems with multiple MSCs

 .  Long term data storage in an INFORMIX(R)/3/ database on the AutoPACE server

 .  Easier analyses through a task-oriented user interface

 .  Flexible and user-definable busy hour analyses

 .  Automated report generation via user-defined schedules

 .  Busy hour or 24 hour data summarization to reduce resource requirements for
   long term data storage

 .  Flexible analysis options, including data trending and forecasting

 .  Flexible configuration options

 .  Integrated interface for data collection from Lucent Technologies wireless
   systems.

 .  7 day x 24 hour hot line support by Wireless Technical Support Center

 .  Professionally produced documentation (hard copy and CD-ROM) reissued every
   release and detailed Release Letters

 .  Dedicated AutoPACE courses included in an integrated wireless curriculum
   provided by the Lucent Technologies Customer Training and Information
   Products (CTIP) organization

--------------------------
/1/  Microsoft is a registered trademark of Microsoft Corporation, Inc.

/2/  Windows is a trademark of Microsoft Corporation, Inc.

/3/  INFORMIX is a registered trademark of INFORMIX Software, Inc.

Exhibit I                     Lucent Technologies                   Page 2 of 22
                                 January 1999
<PAGE>

             AutoPACE System Functional Capabilities: An Overview

The AutoPACE System provides capabilities in the following functional
categories:

Configuration Management

AutoPACE System Configuration Management provides reports and analyses of the
translatable parameters that define the configuration of a Lucent Technologies
wireless system.  Reports include both pre-defined geographic displays and pre-
defined tabular reports.  Also, the AutoPACE System User Definable Report (UDR)
tool allows users to define their own reports of system configuration
parameters.  An associated utility can compare configuration parameters at two
different points in time and display the differences.  Currently, AutoPACE
cannot be used to modify the configuration of a system.

The AutoPACE database stores the most recent view of the system configuration
and this is refreshed with a frequency defined by the user (typically once per
day).  Configuration Management can report on more than one system as well as
systems with more than one MSC.

Traffic Analysis

AutoPACE System Traffic Analysis can be used for hourly, daily, or longer-term
analyses, including weekly, monthly, or annual reports, limited only by the
amount of data stored by the user.  Traffic and performance data for cell sites,
trunks, logical and physical antenna faces, IS-41 inter-system networking and
MSC elements are collected, analyzed, and displayed as user-defined tabular
reports and graphs.  Traffic Analysis can report every count provided by the
AUTOPLEX Service Measurement sub-system and the domestic 5ESS Switch DCS.
Virtually all Traffic Analysis reports are user-defined./4/  The elements of a
report definition include several aspects, including: the system elements
included in a report, the counts included in a report, the data and time scope
of the report, the details of the presentation of the counts (including busy
hour analysis and data summarization details), and the organization, destination
and appearance of the output.

Traffic data, collected from the OMP as well as the domestic 5ESS Switch DCS on
an hourly basis, can be stored in the AutoPACE database for a period of time
determined by the user-provided storage capacity of the AutoPACE server.
Traffic Analysis can report on more than one system as well as systems with more
than one MSC.

------------------------
/4/ Currently, AutoPACE pre-defines the contents of 3 reports supporting
    performance metrics recommended by Lucent Technologies and several reports
    that support capacity planning trending recommended by Lucent Technologies.

Exhibit I                     Lucent Technologies                   Page 3 of 22
                                 January 1999
<PAGE>

Maintenance Message Analysis

AutoPACE System Maintenance Message Analysis is used to study Call Processing
Failure (CPF) messages that are generated by the AUTOPLEX System when a call
terminates abnormally.  Pre-defined and user-defined reports based on Call
Processing Failure messages can be used to troubleshoot performance problems
associated with cell site hardware, specific mobile units, or terminals
associated with a given power class, access technology, or manufacturer.
Maintenance Message Analysis also reports the frequency with which the various
types of Call Processing Failure messages occur.  These counts can be reported
directly by the Maintenance Message Analysis module and can also be included in
the Traffic Analysis reports described above.

Call Processing Failure messages are collected in hourly files on the OMP and
transferred to the AutoPACE server where they are loaded into the AutoPACE
database.  AutoPACE Maintenance Message Analysis can report on more than one
system as well as systems with more than one MSC.

Special Engineering Studies

AutoPACE System Special Engineering Studies (SES) support four types of
scheduled engineering studies:

 .  Power Level Measurements (PLM) to analyze RF signal and impairment
   measurements

 .  Voice Channel Selection Activity (VCSA) to report the details of voice
   channel selection decisions

 .  Handoff Matrix (HOM) to report the flow of calls between handoff neighbors

 .  RF Call Trace to analyze the signal strengths and digital error rates
   received by a test terminal as a function of time

These studies are described in more detail below.

Note that the SES studies themselves are included as standard software in the
MSC and cell generic software and are not part of AutoPACE.  However, the
AutoPACE System provides an easy and reliable interface to schedule any of the
SES studies and, after they have executed AutoPACE can collect the data to
analyze and report it in formats that support troubleshooting.

Exhibit I                     Lucent Technologies                   Page 4 of 22
                                 January 1999
<PAGE>

                       AutoPACE System General Features

The following sections describe several general features that significantly
enhance the functional capabilities of the AutoPACE System.

User Interface

Many of the benefits of the AutoPACE System are realized at the Graphical User
Interface (GUI).  The AutoPACE System provides a GUI to improve the efficiency,
effectiveness, and overall user-friendliness of its performance analysis
capabilities.  The AutoPACE System is a Microsoft Windows application; as such
it shares the ease of use of other Windows applications.  Users already familiar
with Windows applications will quickly relate to the AutoPACE System interface.

The AutoPACE System is designed to allow traffic engineers and technicians to
use any of the available capabilities with a minimum of special training.
AutoPACE System reports can be specified to run according to a user-defined
schedule.  Moreover, the output is available as either tabular or graphical
reports that can be selected or redefined with just a few keystrokes or clicks
of the mouse.  Map reports, which display configuration data based on geography,
provide added insight into the performance of a wireless system.  Finally, On-
Line Help is available for efficient and easy access to reliable, up-to-date
information without interrupting the workflow.

Automation

The AutoPACE System allows a user to specify schedules for automatically
collecting traffic data from one or more AUTOPLEX Systems.  Additionally, the
AutoPACE System provides the ability to automate the generation of user-defined
reports.  A user can specify when to run a report (for example, on a daily or
other regular basis or as a one time case), which report(s) are to be run, and
the output destination.

Spreadsheet Compatibility

The AutoPACE System uses the Microsoft Excel spreadsheet program internally to
output reports (except for map reports). A User Defined Macro capability
provides all the flexibility and power of the spreadsheet to enhance the
analysis of the data. In addition, the AutoPACE System can load data directly
into Microsoft Excel. Thus the use of Excel allows a high degree of
customization and automation by the user, providing additional flexibility for
AutoPACE System users to display high-resolution color plots of primary traffic
data or secondary values calculated from them. For example, the user is able to
choose the axis variable in a plot to study traffic-related dependencies within
a system. Plots can be bar charts, pie charts, line graphs, or any of the other
standard Excel reporting formats.

Exhibit I                     Lucent Technologies                   Page 5 of 22
                                 January 1999
<PAGE>

AutoPACE System Database

All data in the AutoPACE System are stored in a relational database, implemented
using INFORMIX(R)/5/ database software.  The AutoPACE System database supports
three types of data:

     .  AUTOPLEX System Call Processing Failure Messages.

     The database contains Call Processing Failure Messages collected from
          AUTOPLEX System for use by AutoPACE System Maintenance Message
          Analysis and reporting capabilities.  The database also supports the
          generation of counts that summarize the contents of those messages.

     .  AUTOPLEX System Configuration Parameters.

     The AutoPACE System database contains a copy of configuration parameters
          for the AUTOPLEX System, taken from the MSC Application Database/6/,
          as well as user-supplied data such as geographic information or
          network element names.

     . AUTOPLEX System Service Measurements.

     The AutoPACE System database contains service measurements collected from
          AUTOPLEX System and 5ESS Switch DCSs for use by AutoPACE System
          traffic analysis and reporting capabilities. Moreover, the database
          supports the generation of a variety of summary data.

The AutoPACE System automatically accesses its database for all applications.
However, to meet special needs, users can directly access the AutoPACE databases
using the appropriate INFORMIX database tools./7/

Note that the Special Engineering Studies data, used exclusively for
troubleshooting, are not archived in the AutoPACE database.

--------------
/5/  INFORMIX is a registered trademark of INFORMIX Software, Inc.

/6/  The Application Database for the AUTOPLEX System resides on the MSC and
     contains both subscriber and system configuration data.

/7/  Note that these tools will not be supplied with the AutoPACE System
     product. In general, access other than read-only is not recommended.

Exhibit I                     Lucent Technologies                   Page 6 of 22
                                 January 1999
<PAGE>

                         AutoPACE System Configuration

Architecture

The AutoPACE System incorporates a client-server architecture.  The clients do
not contain databases and must access data from a server.  A single server is
able to access one or more AUTOPLEX Systems via TCP/IP connections and to
support one or more clients, connected to the server by a local area network
(LAN/8/).  This configuration allows multiple AutoPACE System clients to share a
common database.  As a result, data are available to all users without wasteful
duplication and without the possibility of inconsistent data.  The AutoPACE
System server, provides additional capabilities that significantly enhance the
effectiveness and utility of the AutoPACE System, including:

     .  automatic scheduled data collection

     .  database management for data storage and administration

     .  high speed data access via the LAN.

Data can be stored for any length of time required by the user, limited only by
the amount of user-provided disk storage capacity.

AutoPACE System Hardware/Software Platform

The AutoPACE System client, implemented on a PC as a Microsoft Windows product,
is positioned take advantage of technical innovations in the personal
computing/workstation market.  The AutoPACE System server is provided on UNIX
System V Release 4 (Solaris/9/) running on a SUN SPARCStation.

AutoPACE System Switch Interface

The AutoPACE System is designed to be used only with Lucent Technologies
wireless systems.  An AutoPACE System client interfaces with an AutoPACE System
server over a LAN.  The AutoPACE System server, in turn, interfaces with one or
more systems, either through a dial-up WAN or dedicated data lines into a port
on the Operations and Management Platform (OMP)./10/

---------------------
/8/  While not strictly required, a LAN will provide the best performance. High
     bandwidth data connections support remote access of the server by a client.

/9/  The currently supported Solaris release numbers can be obtained from your
     Lucent Technologies wireless account representative.

/10/ Note that the AutoPACE System is not sold as a turnkey product. The
     hardware required to support the tool as well as third party vendor
     software (e.g., INFORMIX) must be provided by the customer. However, the
     Lucent Technologies Customer Technical Support Organization will provide
     support to help identify the specific hardware, software, configuration,
     and capacity required for a particular installation.

Exhibit I                     Lucent Technologies                   Page 7 of 22
                                 January 1999
<PAGE>

     [Fifteen Pages of Product Description Information Deleted Pursuant to
                        Confidential Treatment Request]

Exhibit I                     Lucent Technologies                   Page 8 of 22
                                 January 1999
<PAGE>

   Exhibit J to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              LUCENT TECHNOLOGIES

                            AUTOPLEX(R) System 1000
               Operations Administration and Maintenance (OA&M)
                              Functional Overview

                                 July 27, 1999

                    --LUCENT TECHNOLOGIES PROPRIETARY--            July 27, 1999
   Solely for authorized persons having a need to know pursuant to Company
                                 instructions

                                 Page 1 of 24
<PAGE>

   Exhibit J to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

1.     INTRODUCTION

1.1    Overview

The AUTOPLEX(R) system 1000 provides a rich set of Operations, Administration
and Maintenance (OA&M) features to monitor, configure, and control an AUTOPLEX
communications network. These features aim to maximize the quality of service
offered to end customers of the system by:

     1.   Minimizing down time through robust redundancy schemes and fast
          automatic recovery from hardware and software faults,

     2.   Providing a broad set of features to maximize the efficiency of the
          operations staff assigned to monitor and control the system, and

     3.   Supporting a complete set of performance measurements; which enables
          the efficient configuration and engineering of the system.

1.2    Scope

The features described in this document are currently available, or are under
development for delivery in 1999.  This document does not address future product
evolution plans.  This document will be updated yearly to reflect new features
that are added to the product.

The focus of this document is OA&M features offered in the Autoplex 1000 System,
including the Access Manager, 5ESS-2000 DCS, Operation Maintenance Platform -
Simplex, Operational Maintenance Platform-FX, and AutoPACE.

1.3    Guide to the Document

This document is written in a layered fashion starting with a high level product
description, leading to OA&M feature descriptions, and finishing with a
discussion of user and system OA&M interfaces.

Section 2 provides an architectural overview of the AUTOPLEX system, identifying
the Network Elements that comprise the system and their associated redundancy
strategies.

Section 3 provides a functional decomposition of the AUTOPLEX OA&M features.
The features are described according the classical Network Management functional
areas:

     .      Fault Management,
     .      Performance Management,
     .      Configuration Management,
     .      Accounting Management, and
     .      Security Management.

Section 4 describes the hardware and user interfaces that provide access to the
OA&M features.

                    --LUCENT TECHNOLOGIES PROPRIETARY--            July 27, 1999
   Solely for authorized persons having a need to know pursuant to Company
                                 instructions

                                 Page 2 of 24
<PAGE>

   Exhibit J to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

Section 5 describes how the OA&M interfaces may be integrated into a network
operations environment.

1.4    Glossary

The official name of this product is the AUTOPLEX System 1000 Cellular
Telecommunications System.  Throughout this document the product will be
referred to simply as the "AUTOPLEX system".

<TABLE>
<S>                          <C>
AMA                          Automatic Message Accounting
AMATPS                       Automatic Message Accounting Teleprocessing System
AP                           Application Processor
APC                          Application Processor Cluster
APCC                         Application Processor Cluster Complex
ASCII                        American Standard Code for Information Interchange
CDMA                         Code Division Multiple Access
CDN                          Call Processing/ Data Base Node
CDR                          Call Detail Record
CSN                          Cell Site Node
DLN                          Direct Link Node
DCI                          Dual-Serial Channel Computer Interface
DCS                          Digital Cellular Switch
ECP                          Executive Cellular Processor (Access Manager)
ECPC                         Executive Cellular Processor Complex (Access Manager)
EIN                          Ethernet Interface Node
EML                          Element Management Layer
EMS                          Element Management System
FTP                          File Transfer Protocol
GUI                          Graphical User Interface
HOM                          Hand Off Matrix
ICN                          Inter-Cellular Node
IMS/CNI                      Inter-processor Message Switch/Common Network Interface
ITU                          International Telecommunications Union
LAN                          Local Area Network
MSC                          Mobile Switching Center
Network Element              Processing node in the AUTOPLEX system
NML                          Network Management Layer
NOCC                         Network Operations Control Center
NVM                          Non-Volatile Memory
OA&M                         Operations, Administration and Maintenance
OFD                          Operational Fault Detection
OMP                          Operations and Management Platform
OSI                          Open Systems Interconnection
OSS                          Operations Support System
PLM                          Power Level Measurements
PPP                          Point to Point Protocol
PSTN                         Public Switched Telephone Network
RCS                          Radio Cluster Server
RC\V                         Recent Change/Verify
RF                           Radio Frequency
RPCN                         Ring Peripheral Controller Node
</TABLE>

                    --LUCENT TECHNOLOGIES PROPRIETARY--            July 27, 1999
   Solely for authorized persons having a need to know pursuant to Company
                                 instructions

                                 Page 3 of 24
<PAGE>

    Exhibit J to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

<TABLE>
<S>                          <C>
ROP                          Receive Only Printer
SCCS                         Switching Control Center System
SNMP                         Simple Network Management Protocol
SS7                          Signaling System 7
System Administrator         Person responsible for Unix Administration of AUTOPLEX Network Elements
TCP/IP                       Transmission Control Protocol/Internet Protocol
TEA                          Translations Entry Assistant
Technician                   Person responsible for day to day maintenance of equipment
TMN                          Telecommunications Management Network
VCDX                         Very Compact Digital Exchange
VCSA                         Voice Channel Selection Activity
WAN                          Wide Area Network
</TABLE>

2.  SYSTEM DESCRIPTION

The AUTOPLEX system is comprised of a diverse network of processors required to
support a wireless switching system.  Figure 2.0-1 shows the major components
that comprise the AUTOPLEX system architecture.  Figure 2.0-1 does not show all
the AUTOPLEX Network Elements and interfaces.  More detailed diagrams may be
found later in the document.

                 [Figure 2.0-1 AUTOPLEX  System Architecture]

The AUTOPLEX system is designed with a high degree of redundancy to provide
reliable services to wireless subscribers.  The AUTOPLEX Network Elements are
each designed with a redundancy scheme that is best suited to the service that
they provide.  The following subsections defines the role of each of the
AUTOPLEX Network Element and its associated redundancy strategy.

2.1  Operations and Management Platform (OMP)

The OMP is an adjunct processor connected to the ECP via a redundant pair of
high speed data links.  The OMP is not actively involved in processing wireless
calls.  The OMP hosts a wide range of OA&M applications including:

     .    collecting and storing service measurement data to support Performance
          Management,
     .    collecting special study data to support Performance Management,
     .    providing a forms based front end for the ECP Recent Change/Verify
          (RC/V) application for Configuration Management,
     .    maintaining log files for AUTOPLEX event reports,
     .    supporting a near real time billing interface for Accounting
          Management,
     .    storing cell site inventory data for Configuration Management, and

                    --LUCENT TECHNOLOGIES PROPRIETARY--            July 27, 1999
   Solely for authorized persons having a need to know pursuant to Company
                                 instructions
                                 Page 4 of 24

<PAGE>

   Exhibit J to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

     .    storing backup software images for the AP and the Flexent cell
          products.

The multi-window OMP client terminals (attached to the OMP's Ethernet) provide
access to the OA&M applications for maintaining all Network Elements in the
AUTOPLEX system (ECPC, cell sites and 5ESS-2000 DCS).  See section 4.2 for more
details.

The OMP is built on a scalable Sun computing platform.  It utilizes UNIX System
V Release 4 (Solaris(R)/1/) and supports open systems networking standards. The
OMP acts as an interface point into the service provider's Wide Area Network
(WAN) for network operations. Operations Support Systems (OSSs) can connect to
the OMP to support network level Fault Management, Performance Management,
Configuration Management, and Accounting Management. See Section 4.3 for more
details on AUTOPLEX interfaces to the OSSs.

OMP enhancements, EOY1999 will introduce a new OMP platform, the Flexent OMP-FX.
This latest platform will provide the same details as listed above, however, on
an ongoing basis provide many more applications.  In addition, the OMP-FX
platform is design to with the Sun Microsystems Netra T Server, and ensures high
data reliability using mirroring disk drives.  The OMP-FX will support the
Element Management System associated with the Flexent Applications Processor
(AP) and Enhanced Electronic Software Distribution.  The total number of
sessions available currently for the OMP-FX will remain the same as the OMP-
Simplex (12 Sessions), however, enhancements are currently being developed to
bring the session total to up to 100, this enhancement is currently scheduled
for EOY2000.

2.2  AutoPACE(R)

The AutoPACE system is an adjunct set of processors (the AutoPACE server, and
multiple AutoPACE client PCs) that monitor and report AUTOPLEX performance data.
The AutoPACE system is designed to be used only with the AUTOPLEX system, Figure
2.6-1 below shows a typical AutoPACE configuration.  The AutoPACE server
receives performance data from the OMP and stores it in a data base.  The
AutoPACE client PCs execute AutoPACE applications with support from the AutoPACE
server.

/1/ Solaris is a registered trademark of  Sun Microsystems, Inc.

                      --LUCENT TECHNOLOGIES PROPRIETARY--          July 27, 1999
   Solely for authorized persons having a need to know pursuant to Company
                                 instructions
                                 Page 5 of 24
<PAGE>

    Exhibit J to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                  [Figure 2.1 Typical AutoPACE Configuration]

A single AutoPACE server connects to multiple AUTOPLEX systems and supports one
or more AutoPACE client PCs, connected to the server by a Local Area Network
(LAN).  The AutoPACE client applications run Windows(TM) applications on a PC.
The AutoPACE server is based on UNIX System V Release 4 (Solaris/2/) running on
a Sun SPARCStation(R)/3/.

[***]

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.
___________________

/2/  The currently supported Solaris release numbers can be obtained from your
      Lucent Technologies wireless account representative.
/3/  SPARC station is a registered trademark of SPARC International, Inc.

                      --LUCENT TECHNOLOGIES PROPRIETARY--          July 27, 1999
   Solely for authorized persons having a need to know pursuant to Company
                                  instructions
                                 Page 6 of 24
<PAGE>

    Exhibit J to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

         [Eighteen Pages of Technical Information Deleted Pursuant to
                        Confidential Treatment Request]

                      --LUCENT TECHNOLOGIES PROPRIETARY--          July 27, 1999
   Solely for authorized persons having a need to know pursuant to Company
                                  instructions
                                 Page 7 of 24
<PAGE>

   Exhibit K to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                 Lucent Technologies Network Wireless Systems

   [Seven Pages of Pricing Lists Deleted Pursuant to Confidential Treatment
                                   Request]
<PAGE>

    Exhibit L to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                              Standard Intervals

[Two Pages of Technical Information Deleted Pursuant to Confidential Treatment
                                   Request]
<PAGE>

                                  Exhibit L
                         Cricket Communications, Inc.
                      System Equipment Purchase Agreement

                              ORDERING PROCEDURES

1.0  Orders shall be in writing, transmitted electronically or in any other
     manner mutually agreed to by the parties and shall specify:

          (a) description of Products and Services, inclusive of any
          numerical/alphabetical indentifications, referenced in the Vendor's
          documentation;
          (b) requested delivery, completion and/or in-service date as
          applicable;
          (c) location to which the Products are to be shipped and/or location
          at which Services are to be performed;
          (d) location to which invoices shall be rendered for payment;
          (e)  Owner's Order number,
          (f) price or Owner's Request For Quotation number, if applicable;
          (g) a list and description of the Software to be licensed if
          applicable;
          (h) the description, serial number, if known, and location of the
          processor for which Software is being furnished.

1.1  EF&I, F&I and E&F Orders:

          1.1.1    Vendor shall acknowledge receipt of Owner's Order within ten
          (10) workdays of receipt of such Order. Vendor shall accept or reject
          in writing Owner's requested delivery and/or completion date, within
          three (3) weeks from receipt of Order. In the event Vendor fails to
          accept or reject any such requested delivery or completion date within
          the aforesaid period, such dates shall be deemed accepted.

          1.1.2    Should Owner require Vendor's acceptance or rejection of
          requested delivery and/or completion dates in less three (3) weeks,
          Vendor shall use all reasonable efforts to respond in the interval
          requested by Owner.

          1.1.3    In the event that Vendor cannot accept the specified delivery
          and/or completion date, Owner may cancel said Order in writing without
          penalty or obligation of any kind or negotiate a new delivery and/or
          completion date mutually acceptable to both parties, which date shall
          be acknowledged in writing by Vendor within ten (10) workdays of such
          agreement.  Such cancellation shall not be deemed to relieve Owner of
          its obligations to source subsequent Orders for Goods and Software on
          Vendor in accordance with the Contract provided that the delivery
          and/or completion commitment which Vendor is willing to make is
          consistent with Vendor's then current standard interval for the Goods,
          Software and Services.

          1.1.4    Should Owner's requested delivery and/or completion dates on
          an Order compress the equipment engineering or installation interval
          beyond that referenced in Vendor's associated Firm Price Quotation,
          upon written agreement by Owner, Vendor shall be authorized to render
          additional billing for equipment engineering and installation premium
          time incurred or additional resources incurred, as required to improve
          the quoted equipment engineering and installation intervals to match
          Owner's requested dates or mutually agreeable alternative dates.

                           LUCENT TECHNOLOGIES, INC.
                            PROPRIETARY INFORMATION
                                  Page 3 of 7
<PAGE>

                                  Exhibit L
                         Cricket Communications, Inc.
                      System Equipment Purchase Agreement

1.2  Furnish Only Orders:

          1.21.    Vendor shall acknowledge receipt of Owner's Order in writing
          and shall accept or reject the requested delivery date in writing
          within ten (l0) workdays after receipt of such Order.  In the event
          Vendor fails to accept or reject any such requested delivery date
          within the aforesaid period, such date shall be deemed accepted.

          1.2.2    In the event that Vendor cannot meet the requested delivery
          date, Owner may cancel said Order in writing without penalty or
          obligation of any kind or negotiate a new delivery and/or completion
          date mutually acceptable to both parties, which date shall be
          acknowledged in writing by Vendor within ten (l0) workdays of such
          agreement.  Such cancellation shall not be deemed to relieve Owner of
          its obligations to source the ordered Products and Services from
          Vendor in accordance with the Contract, provided that the delivery
          and/or completion commitment which Vendor is willing to make is
          consistent with Vendor's then current standard interval for the
          Products and Services.

1.3  Installation Only Orders:

          1.3.1    Owner shall provide Vendor its specifications and
          installation requirements which shall include Owner's requested job
          completion date.  Within ten (10) workdays of Vendor's receipt of such
          information, Vendor shall provide a FPQ, which details prices for the
          installation Services requested by the Owner.

          1.3.2    Within four (4) weeks following receipt of the Vendor's FPQ,
          Owner shall accept or reject said FPQ.  Owner's acceptance of the FPQ
          will be confirmed by placement of an Order during this four (4) week
          period.  Vendor shall acknowledge receipt of said Order within ten
          (l0) workdays following placement of said Order.  In the event Owner
          rejects Vendor's FPQ, Vendor will return all Owner's specifications
          and installation requirements within ten (10) workdays of such
          rejection.

          1.3.3    Should Owner's requested completion date on an Order compress
          the installation interval beyond that referenced in Vendor's
          associated Firm Price Quotation, upon written agreement by Owner,
          Vendor shall be authorized to render additional billing for
          installation premium time incurred or additional resources incurred,
          as required to improve the quoted installation intervals to match
          Owner's requested dates or mutually agreeable alternative dates.

1.4  Change Orders:

          1.4.1    Any changes to an original Order and any resulting
          adjustment, including but not limited to schedules and price, shall be
          mutually agreed upon and subsequently detailed in a written Change
          Order referencing the original Order.  Owner and/or Vendor as
          appropriate shall provide supplementary documentation indicating all
          changes.

          1.4.2    Change Order is Vendor's term for additional work it
          undertakes at the specific request of an employee of Owner.  Owner
          agrees that upon written authorization of a Change Order by any of
          Owner's employees, Vendor shall perform the supplemental work,
          provided however, that Vendor forwards a copy of said written
          authorization to Owner's engineering department within ten (10)
          business days.

                           LUCENT TECHNOLOGIES, INC.
                            PROPRIETARY INFORMATION
                                  Page 4 of 7
<PAGE>

                                  Exhibit L
                         Cricket Communications, Inc.
                      System Equipment Purchase Agreement

1.5  Ordering Address:

Orders placed by Owner hereunder shall be sent to:

          Lucent Technologies Inc.
          22 Technology Parkway South, Suite 200
          Norcross, GA 30092

          Attention: Jan Broome

2.0  FPQ

          2.1  Owner may submit to Vendor a Request For Quote for a future
          potential Order.  With respect to cell site Products and Services,
          Vendor shall use all reasonable efforts to respond in writing with its
          FPQ within two (2) weeks of receipt of the request.  Intervals for
          other Products and Services shall be as mutually agreed.  Unless
          otherwise specified in Vendor's FPQ, Owner shall have four (4) weeks
          from receipt of Vendor's FPQ to decide whether to Order the Products
          and/or Services referenced in the FPQ.  In the absence of such action
          by Owner, the FPQ lapses.

3.0  Expediting of Orders:

     Owner and Vendor will work together to expedite all aspects of an Order in
     the event Owner requests an Order be expedited.

4.0  Order Hold, Order Termination

          4.1  Owner may suspend, hold or terminate any Order or portion thereof
          except with respect to Products which have already shipped or Services
          which have already been performed.

          4.1.1  EF&I, E&F and F&I Orders

                 For purposes of this Section, "price" represents equipment
                 engineering and material charges; and "shipping interval"
                 represents published equipment engineering and manufacturing
                 interval. In the event Owner terminates an EF&I E&F or F&I
                 Order or portion thereof, the following termination charges
                 will apply.

<TABLE>
<CAPTION>
                      --------------------------------------------------
                      Percent of Shipping            Termination Charge
                            Interval
                      --------------------------------------------------
                      <S>                            <C>
                      up to 25%                            [***]
                      --------------------------------------------------
                      26% to 50%                           [***]
                      --------------------------------------------------
                      51% to 75%                           [***]
                      --------------------------------------------------
                      greater than 76%                     [***]
                      --------------------------------------------------
</TABLE>

          4.1.2.  Furnish Only Orders

                  For purposes of this Sub-Section, "price" represents price for
                  Products for Furnish Only Orders; and "shipping interval"
                  represents the elapsed time between the date Owner's Order is
                  received by Vendor and the committed date of shipment from
                  Vendor's shipping location. Should the Owner terminate Furnish
                  Only Orders during the committed interval,

                           LUCENT TECHNOLOGIES, INC.
                            PROPRIETARY INFORMATION
                                  Page 5 of 7
<PAGE>

                                  Exhibit L
                         Cricket Communications, Inc.
                      System Equipment Purchase Agreement

               the following table will determine termination charges.  The word
               "committed" in this Section means the mutually agreed upon date.

<TABLE>
<CAPTION>
                     ------------------------------------------------------
                      Percent of Committed             Termination Charge
                        Shipping Interval
                     ------------------------------------------------------
                     <S>                               <C>
                       Up to 10%                            [***]
                     ------------------------------------------------------
                       11% to 20%                           [***]
                     ------------------------------------------------------
                       21% to 40%                           [***]
                     ------------------------------------------------------
                       41% to 60%                           [***]
                     ------------------------------------------------------
                       61% to 80%                           [***]
                     ------------------------------------------------------
                       81% to 100%                          [***]
                     ------------------------------------------------------
</TABLE>

          4.2  All termination charges described above in this Section will take
               into consideration reusability of Products by Vendor.

                                CHANGE NOTICES

          1.0  With respect to product changes, modifications, or substitutions,
          Vendor shall notify Owner in writing sixty (60) days prior to their
          effective dates, except Vendor will, unless emergency conditions
          require otherwise, advise Owner not less than thirty (30) days prior
          to implementing any Class A change defined below.

          1.1  All notifications of such changes shall be provided at no charge
          and be disseminated by Vendor in accordance with distribution lists
          provided by Owner and shall contain the following information:

               1.1.1  Vendor Information: Vendor's name, address, technical
               contact name and phone number.

               1.1.2.  Product Change Notice Number: Number conforming to a
               single sequential numbering scheme used by Vendor.

               1.1.3  Issue Date of Change: Date Product Change Notice is
               transmitted.

               1.1.4  Product Description: Description of the product affected
               (e.g., Line Card or 24 foot aluminum ladder).

               1.1.5  New Product Code: Unique identity of the changed product
               (e.g., Circuit Pack CP 11101, Series 1, List 4).

               1.1.6  Old Product Code: Unique identity of the product being
               changed (e.g., Circuit Pack CP 11101, Series 1, List 3).

               1.1.7  New PID Code(s): The alpha-numeric PID code(s) assigned to
               the changed product, if applicable.

               1.1.8  Old PID Code(s): PID codes of all equipment associated
               with this change (see Item 1.1.9), if applicable.

               1.1.9  Associated products or changes Affected: Coordinated
               product changes that must be applied in conjunction with, or
               prior to, this change.

                           LUCENT TECHNOLOGIES, INC.
                            PROPRIETARY INFORMATION
                                  Page 6 of 7
<PAGE>

                                  Exhibit L
                         Cricket Communications, Inc.
                      System Equipment Purchase Agreement

               1.1.10.  Drawing Number: The circuit (schematic) drawing number
               and issue that incorporates the change (e.g., SD l1101-01, Issue
               11).

               1.1.1 l   Change Classification: Classification of the change (A
               or B).

               1.1.12  Classification Substantiation: Details of why the
               Proposed Classification is appropriate.

               1.1.13  Reason For Change: Detailed explanation of why the change
               is necessary, for example: what are the symptoms of the condition
               being corrected?

               1.1.14  Description of Change: Installation details of change,
               for example:

                       a.  What is to be changed?
                       b.  How is it to be changed?
                       c.  How can change be tested/verified?

               1.1.15  Effect of Change: Description of the effect of the change
               on:

                       a.  Service
                       b.  Transmission
                       c.  Traffic
                       d.  Maintenance
                       e.  Reliability
                       f.  Commercial Specifications
                       g   Control Specifications
                       h.  Safety

               1.1.16  Material Affected: Apparatus, wiring, circuit packs,
               etc., affected by change.

               1.1.17  Documentation Affected: List of associated drawings,
               programs, practices, manuals, nomenclature etc. affected by the
               change.

               1.1.18  Vendor Implementation Date: Date after which all newly
               manufactured Products and/or Services will incorporate the
               change.

               1.1.19  Modification Expiration Date (for Class A changes only):
               Date after which Vendor terminates responsibility for applying
               the change; i.e. providing modification material, etc., on a non-
               billable basis.

               1.1.20  Modification Location: Vendor recommendation for field or
               factory installation of change.

               1.1.21  Location and Quantity of Equipment (if the Vendor has
               these records): The location and quantity of working or spare
               equipment, in the hands of the Owner, that requires the change.

               1.1.22  Implementation Schedule: Proposed schedule.

                           LUCENT TECHNOLOGIES, INC.
                            PROPRIETARY INFORMATION
                                  Page 7 of 7
<PAGE>

   Exhibit M to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                    CDMA Enhanced Primary Minicell Overview

[Twelve Pages of Technical Information Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

                                   Exhibit N
                                    to the
                         CRICKET COMMUNICATIONS, INC.
                      SYSTEM EQUIPMENT PURCHASE AGREEMENT

1.1  HOT-LINE SERVICE

          Vendor will provide an "800 Hot-Line" telephone Service for direct
          telephone support to Owner in an emergency situation.  The Hot Line
          telephone number is 1-800-225-4672.  This Service will be available
          twenty-four (24) hours a day, seven (7) days a week for Severity
          Levels 1 and 2 conditions only.  Prior to placing the call to the Hot-
          Line, the following steps shall have been completed by Owner with
          assistance of Vendor when required:

          (a)  Identification of the condition and its isolation to a particular
               component of the system believed to be Vendor's responsibility.

          (b)  Collection of sufficient supporting documentation from the system
               for inclusion in the trouble report

          (c)  Determination that there are no outstanding fixes which correct
               the condition.

          When a problem is identified as a fix to Seller's infrastructure,
          whereas a fix is not in compliance within Seller's specifications, the
          Vendor will supply the solution and make it available to Owner.

1.2  RESPONSE TIME INTERVALS

          The Owner due date, is set by default based on the Severity Field.  If
          the Owner negotiates a new date with the Vendor, the mutually agreed
          date will apply.

     Table 1 Response Tune Intervals

     Severity          Calendar Days to Resolve
     1                           7
     2                          45
     3                          90
     4                         180

          Once the solution is found, Vendor will supply it for testing and use
          on the failed system.

1.3  NORMAL TROUBLE-REPORTING PROCEDURES

          Owner requirements and routines for reporting Severity Levels 2, 3 and
          4 conditions are as follows:

          (a)  Owner shall prepare a trouble report, including the appropriate
               supporting documentation and forward it to Vendor at the address
               provided by Vendor.

          (b)  Owner may also telephone the Vendor's Customer Wireless Technical
               Support Center for answers to general operational questions about
               the Software or Equipment and/or assistance in correcting
               Severity Level 3 and 4 conditions.  The

                           LUCENT TECHNOLOGIES, INC.
                            PROPRIETARY INFORMATION
                                  Page 1 of 5
<PAGE>

                                   Exhibit N
                                    to the
                         CRICKET COMMUNICATIONS, INC.
                      SYSTEM EQUIPMENT PURCHASE AGREEMENT

               return call will either provide the requested information,
               request additional information, or report on the status of
               corrective action on the trouble report.

          (c)  The calling Owner's personnel shall provide the following
               information:

               .  Caller's name, location, and company

               .  Call-back telephone number

               .  System name, location

               .  Generic issue

               .  Equipment location, type and serial number

               .  Nature of question or situation.

1.4  SEVERITY LEVELS / PRIORITY

                   Severity 1
         . Total system failure,
         . Loss of a major system component
         . Loss of emergency capability
         . Significant reduction of revenue generating capability

                   Severity 2
         . Loss of system's redundancy
         . Notable functional failure of a specific call type
         . Notable functional loss of revenue due to a billing error
         . Loss of diagnostic functionality
         . Loss of reporting functionality

                   Severity 3
         . Intermittent faults
         . Marginal functional failure of a specific call type
         . Marginal functional loss of revenue due to a billing error
         . Invalid data

                   Severity 4
         . Any questions regarding documentation
         . General informational questions
         . Other investigations that are not marked 1, 2 or 3

         [***]

         [*] Certain material (indicated by an asterisk) has been omitted from
             this document pursuant to a request for confidential treatment. The
             omitted material has been filed separately with the Securities and
             Exchange Commission.

                           LUCENT TECHNOLOGIES, INC.
                            PROPRIETARY INFORMATION
                                  Page 2 of 5
<PAGE>

                                   Exhibit N
                                    to the
                         CRICKET COMMUNICATIONS, INC.
                      SYSTEM EQUIPMENT PURCHASE AGREEMENT

[Three Pages of Technical Information Deleted Pursuant to Confidential Treatment
                                    Request]

                           LUCENT TECHNOLOGIES, INC.
                            PROPRIETARY INFORMATION
                                  Page 3 of 5
<PAGE>

                                   Exhibit O

                                    to the

                         CRICKET COMMUNICATIONS, INC.

                      SYSTEM EQUIPMENT PURCHASE AGREEMENT

                                   Training

                                  Description

                                 August, 1999
<PAGE>

   [Fifteen Pages of Technical Information Deleted Pursuant to Confidential
                              Treatment Request]
<PAGE>

                               Exhibit P to the
                         CRICKET COMMUNICATIONS, INC.
                      SYSTEM EQUIPMENT PURCHASE AGREEMENT

                       LUCENT TECHNOLOGIES DOCUMENTATION

     Product Documentation

     Vendor will provide Owner the documentation needed to support its PCS-CDMA
     products.  This documentation is in the form of a CD-ROM.  The CD-ROM
     contains the complete set of Wireless documentation.  One set of
     documentation, contained on a CD-ROM, will be provided for each Owner, MSC
     location, headquarters and regional offices.  Updates to these documents
     (also on CD-ROM) will be provided to Owner free of charge during the
     warranty period.  Owner may purchase any additional documentation from
     Vendor's Customer Information Center.

     Autoplex System 1000

     Customer Documentation Catalog
     Issue 13 January 1999

     Contents

     About This Document

     .    Introduction
     .    Reason for Reissue
     .    How to Use This Catalog
     .    How to Comment on This Document

     Ordering Information

     .    Final Documents
     .    CTSO News Bulletins
     .    Documentation Packaging

     Electronic Documentation

     .    System Requirements
     .    Ordering Electronic Documentation

05/10/99                      Lucent Technologies                    EXHIBIT P-1
              This document contains proprietary information of
                              Lucent Technologies
           and is not to be disclosed or used except in accordance
                          with applicable agreements

                                  Page 1 of 3
<PAGE>

                               Exhibit P to the
                         CRICKET COMMUNICATIONS, INC.
                      SYSTEM EQUIPMENT PURCHASE AGREEMENT

     Autoplex(R) System Documents

     .    Engineering
     .    Operation and Maintenance
     .    Descriptive
     .    Software
     .    Power

     Autopace Documents

     Operations and Management Platform (OMP) Documents

     Cell Site Documents

     Autoplex System 1000 Optional Feature Documents

     .    Optional Feature Documents
     .    Other AUTOPLEX System 1000 Feature Documents

     Vendor 3B20D Executive Cellular Processor (ECP) Documents

     .    Operation and Maintenance
     .    Descriptive
     .    AT&T 3B20D Model 2 and Model 3 computers Software
     .    Power

     Vendor 3B21D Executive Cellular Processor (ECP) Documents

     .    Engineering
     .    Operation and Maintenance
     .    Descriptive
     .    Software

     MSC Complex Documents

     .    Engineering
     .    Installation
     .    Maintenance
     .    Descriptive
     .    Provisioning

05/10/99                      Lucent Technologies                    EXHIBIT P-1
              This document contains proprietary information of
                              Lucent Technologies
           and is not to be disclosed or used except in accordance
                          with applicable agreements

                                  Page 2 of 3
<PAGE>

                               Exhibit P to the
                         CRICKET COMMUNICATIONS, INC.
                      SYSTEM EQUIPMENT PURCHASE AGREEMENT

     5ESS (C) Switch Documents
     .    Engineering
     .    Operation and Maintenance
     .    Descriptive
     .    Software

     PCS Documents
     .    Engineering
     .    PCS CDMA
     .    PCS TDMA

     Cellular Digital Packet Data (CDPD) Documents
     .    DACS (R) II ISX Release 1.0 MML
     .    AUTOPLEX System 1000 CDPD
     .    Veritas
     .    SynOptics
     .    Sun/Solaris
     .    Miscellaneous CDPD Documentation
     .    Cellular Digital Packet Data Engineering Drawings

     Transmission Documents
     Customer Information Bulletins
     Engineering Letters
     Schematic Drawings
     Wall Charts
     Optional Binders

     Autoplex System Document Kits

     .    Ordering a Complete Set of Paper Documentation
     .    Kit Descriptions

     Index

05/10/99                      Lucent Technologies                    EXHIBIT P-1
              This document contains proprietary information of
                              Lucent Technologies
           and is not to be disclosed or used except in accordance
                          with applicable agreements

                                  Page 3 of 3
<PAGE>

                                   EXHIBIT Q

                          CRICKET COMMUNICATIONS, INC.
                      SYSTEM EQUIPMENT PURCHASE AGREEMENT
                                   INSURANCE

Each party shall maintain during the term of this Contract, at its own cost and
expense, carry and maintain at a minimum, the insurance coverage listed below.
If either party is not self-insured, that party shall maintain such coverages
having a "Best's" rating of at least B+XIII.  Vendor shall not commence any work
hereunder until each party has fulfilled all insurance requirements herein.
Each party shall require its subcontractors and agents to maintain the same
insurance coverage listed below.

   -      Workers' Compensation insurance with statutory limits as required in
          the state(s) of operation; and providing coverage for either party's
          employee entering onto Owner premises, even if not required by
          statute, Employers' Liability or "Stop Gap" insurance with limits of
          not less than $500,000 for each occurrence.

   -      Commercial General Liability Insurance covering claims for bodily
          injury, death, personal injury or property damage occurring or arising
          out of the performance of this Agreement, including coverage for
          independent contractor's protection (required if any work will be
          subcontracted), premises-operations, products/completed operations and
          contractual liability with respect to the liability assumed by either
          party hereunder.

   -      The limits of insurance shall be:

          -Each Occurrence (Bodily Injury/Property Damage)        $1,000,000.00
          -General Aggregate Limit (Annual Aggregate)             $2,000,000.00
          -Products-Completed Operations Limit (Annual Aggregate) $1,000,000.00
          -Personal Advertising Injury Limit (Each Occurrence)    $1,000,000.00

  -       Comprehensive Automobile Liability Insurance covering ownership,
          operation and maintenance of all owned, non-owned and hired motor
          vehicles used in connection with the performance of this Agreement,
          with limits of at least $1,000,000 combined single limit for bodily
          injury and property damage.

The insurance limits required herein may be obtained through any combination of
self-insurance, primary and excess or umbrella liability insurance.  Each party
shall furnish the other prior to the start of the work, if requested by the
other party, certificates or adequate proof of the insurance required by this
clause.  Each party shall notify the other in writing at least thirty (30) days
prior to cancellation of or any material change in the policy.  Notwithstanding
the above, each party shall have the option where permitted by law to self-
insure any or all of the foregoing risks.

                                  Page 1 of 1
<PAGE>

    Exhibit S to the Cricket Communications, Inc. System Equipment Purchase
                                   Agreement

                                    Markets

  [One Page of Pricing Information Deleted Pursuant to Confidential Treatment
                                    Request]<PAGE>

                                                                   EXHIBIT 10.26
   ========================================================================

                               CREDIT AGREEMENT

                       dated as of September 20, 1999,
                         As Amended and Restated as of

                               October 20, 2000

                                     among

                    CRICKET COMMUNICATIONS HOLDINGS, INC.,

                         CRICKET COMMUNICATIONS, INC.,

                         The Lenders Party Hereto,

                                      and

                          LUCENT TECHNOLOGIES INC.,
                            as Administrative Agent

   ========================================================================
                                                   [Reference No. 7725-053]

CERTAIN MATERIAL (INDICATED BY AN ASTERISK) HAS BEEN OMITTED FROM THIS DOCUMENT
PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT. THE OMITTED MATERIAL HAS
BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<S>                                                                                        <C>
ARTICLE I Definitions                                                                       4
          -----------
   SECTION 1.01. Defined Terms                                                              4
   ---------------------------
   SECTION 1.02. Classification of Loans and Borrowings                                     5
   ----------------------------------------------------
   SECTION 1.03. Terms Generally                                                            5
   -----------------------------
   SECTION 1.04. Accounting Terms; GAAP; Consolidation of License Subsidiaries              6
   ---------------------------------------------------------------------------
ARTICLE II The Loans                                                                        6
           ---------
   SECTION 2.01. Commitments                                                                6
   -------------------------
   SECTION 2.02. Loans and Borrowings                                                       7
   ----------------------------------
   SECTION 2.03. Requests for Borrowings                                                    8
   -------------------------------------
   SECTION 2.04. Funding of Borrowings                                                      9
   -----------------------------------
   SECTION 2.05. Interest Elections                                                        10
   --------------------------------
   SECTION 2.06. Termination and Reduction of Commitments                                  11
   ------------------------------------------------------
   SECTION 2.07. Repayment of Loans; Evidence of Debt                                      11
   --------------------------------------------------
   SECTION 2.08. Amortization of Loans                                                     12
   -----------------------------------
   SECTION 2.10. Fees                                                                      15
   ------------------
   SECTION 2.11. Interest                                                                  15
   ----------------------
   SECTION 2.12. Alternate Rate of Interest                                                16
   ----------------------------------------
   SECTION 2.13. Increased Costs                                                           16
   -----------------------------
   SECTION 2.14. Break Funding Payments                                                    17
   ------------------------------------
   SECTION 2.15. Taxes                                                                     18
   -------------------
   SECTION 2.16. Payments Generally; Pro Rata Treatment; Sharing of Setoffs                18
   ------------------------------------------------------------------------
   SECTION 2.17. Mitigation Obligations; Replacement of Lenders                            20
   ------------------------------------------------------------
ARTICLE III Representations and Warranties                                                 21
            ------------------------------
   SECTION 3.01. Organization; Powers                                                      21
   ----------------------------------
   SECTION 3.02. Authorization; Enforceability                                             21
   -------------------------------------------
   SECTION 3.03. Governmental Approvals; No Conflicts                                      21
   --------------------------------------------------
   SECTION 3.04. Financial Condition; No Material Adverse Change                           21
   -------------------------------------------------------------
   SECTION 3.05. Properties and Licenses                                                   22
   -------------------------------------
   SECTION 3.06. Litigation and Environmental Matters                                      22
   --------------------------------------------------
   SECTION 3.07. Compliance with Laws and Agreements                                       23
   -------------------------------------------------
   SECTION 3.08. Investment and Holding Company Status                                     23
   ---------------------------------------------------
   SECTION 3.09. Taxes                                                                     23
   -------------------
   SECTION 3.10. ERISA                                                                     23
   -------------------
   SECTION 3.11. Disclosure                                                                24
   ------------------------
   SECTION 3.12. Subsidiaries                                                              24
   --------------------------
   SECTION 3.13. Insurance                                                                 24
   -----------------------
   SECTION 3.14. Labor Matters                                                             24
   ---------------------------
   SECTION 3.15. Purchase Agreement                                                        24
   --------------------------------
   SECTION 3.16. Year 2000                                                                 24
   -----------------------
   Section 3.17. Eligible Secured Debt                                                     25
   -----------------------------------
ARTICLE IV Conditions                                                                      25
           ----------
   SECTION 4.01. Effective Date                                                            25
   ----------------------------
   SECTION 4.02. Initial Availability Date                                                 25
   ---------------------------------------
</TABLE>
<PAGE>

<TABLE>
<S>                                                                                        <C>
   SECTION 4.03. [intentionally omitted]                                                   27
   SECTION 4.04. Each Borrowing                                                            27
   ----------------------------
   SECTION 4.05. Restatement.                                                              28
   -------------------------
ARTICLE V Affirmative Covenants                                                            28
          ---------------------
   SECTION 5.01. Financial Statements and Other Information                                28
   --------------------------------------------------------
   SECTION 5.02. Notices of Material Events                                                30
   ----------------------------------------
   SECTION 5.03. Information Regarding Collateral                                          30
   ----------------------------------------------
   SECTION 5.04. Existence; Conduct of Business                                            31
   --------------------------------------------
   SECTION 5.05. Payment of Obligations                                                    31
   ------------------------------------
   SECTION 5.06. Maintenance of Properties                                                 31
   ---------------------------------------
   SECTION 5.07. Insurance                                                                 31
   -----------------------
   SECTION 5.08. Books and Records; Inspection Rights                                      32
   --------------------------------------------------
   SECTION 5.09. Compliance with Laws and Agreements                                       32
   -------------------------------------------------
   SECTION 5.10. Use of Proceeds                                                           33
   -----------------------------
   SECTION 5.11. Additional Subsidiaries                                                   33
   -------------------------------------
   SECTION 5.12. Further Assurances                                                        33
   --------------------------------
   SECTION 5.13. Casualty and Condemnation                                                 34
   ---------------------------------------
   SECTION 5.14. Interest Rate Protection                                                  34
   --------------------------------------
   SECTION 5.15. Intercompany Agreements                                                   34
   -------------------------------------
   SECTION 5.16. Agreement Regarding FCC Licenses.                                         35
   ----------------------------------------------
ARTICLE VI Negative Covenants                                                              35
           ------------------
   SECTION 6.01. Indebtedness; Preferred Stock                                             35
   -------------------------------------------
   SECTION 6.02. Liens                                                                      1
   -------------------
   SECTION 6.03. Fundamental Changes; Corporate Structure                                   2
   ------------------------------------------------------
   SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions; Asset
   ------------------------------------------------------------------------------
   Sales                                                                                    4
   -----
   SECTION 6.05. Hedging Agreements                                                         6
   --------------------------------
   SECTION 6.06. Restricted Payments                                                        6
   ---------------------------------
   SECTION 6.07. Transactions with Affiliates                                               7
   ------------------------------------------
   SECTION 6.08. Restrictive Agreements                                                     8
   ------------------------------------
   SECTION 6.09. Repayment of Indebtedness                                                  8
   ---------------------------------------
   SECTION 6.10. Intercompany Agreements                                                    8
   -------------------------------------
   SECTION 6.11. Limitation on Sale-Leaseback Transactions                                  8
   -------------------------------------------------------
   SECTION 6.12. Equipment Site Interests and Real Estate Subsidiaries                      8
   -------------------------------------------------------------------
   SECTION 6.13. FCC Licenses and License Subsidiaries                                      8
   ---------------------------------------------------
   SECTION 6.14. Amendment of Material Documents                                            9
   ---------------------------------------------
   SECTION 6.15. Capital Expenditures                                                       9
   ----------------------------------
   SECTION 6.16. Covered POPS                                                               9
   --------------------------
   SECTION 6.17. Subscribers                                                               10
   -------------------------
   SECTION 6.18. Total Indebtedness to Total Capitalization                                11
   --------------------------------------------------------
   SECTION 6.19. Total Indebtedness to Annualized EBITDA                                   11
   -----------------------------------------------------
   SECTION 6.20. Consolidated EBITDA to Cash Interest Expense                              11
   ----------------------------------------------------------
   SECTION 6.21. Minimum Gross Revenue                                                     12
   -----------------------------------
   SECTION 6.23. Fiscal Year and Fiscal Quarters                                           13
   ---------------------------------------------
</TABLE>
<PAGE>

<TABLE>
<S>                                                                                <C>
ARTICLE VII      Events of Default                                                 13
                 -----------------
ARTICLE VIII     The Agents                                                        15
                 ----------
ARTICLE IX       Miscellaneous                                                     17
                 -------------
   SECTION 9.01.    Notices                                                        17
   ------------------------
   SECTION 9.02.    Waivers; Amendments                                            18
   ------------------------------------
   SECTION 9.03.    Expenses; Indemnity; Damage Waiver                             19
   ---------------------------------------------------
   SECTION 9.04.    Successors and Assigns                                         20
   ---------------------------------------
   SECTION 9.05.    Survival                                                       22
   -------------------------
   SECTION 9.06.    Counterparts; Integration; Effectiveness                       23
   ---------------------------------------------------------
   SECTION 9.07.    Severability                                                   23
   -----------------------------
   SECTION 9.08.    Right of Setoff                                                23
   --------------------------------
   SECTION 9.09.    Governing Law; Jurisdiction; Consent to Service of Process     23
   ---------------------------------------------------------------------------
   SECTION 9.10.    WAIVER OF JURY TRIAL                                           24
   -------------------------------------
   SECTION 9.11.    Headings                                                       24
   -------------------------
   SECTION 9.12.    Confidentiality                                                24
   --------------------------------
   SECTION 9.13.    Interest Rate Limitation                                       25
   -----------------------------------------
   SECTION 9.14.    Amendments to Other Loan Documents                             25
   ---------------------------------------------------
</TABLE>

SCHEDULES:

Schedule 1.01A    --   Airgate Licenses
Schedule 2.01     --   Tranche A Commitments
Schedule 3.05A    --   Real Property
Schedule 3.05B    --   Licenses
Schedule 3.06     --   Disclosed Matters
Schedule 3.12     --   Subsidiaries
Schedule 3.13     --   Insurance
Schedule 6.01     --   Existing Indebtedness
Schedule 6.02     --   Existing Liens
Schedule 6.08     --   Existing Restrictions

EXHIBITS:
--------

Exhibit A         --   Form of Borrower Pledge Agreement
Exhibit B         --   Form of Collateral Agency Agreement
Exhibit C         --   Form of Guarantee Agreement
Exhibit D         --   Form of Indemnity, Subrogation and
                          Contribution Agreement
Exhibit E         --   Form of Parent Agreement
Exhibit F         --   Form of Parent Pledge Agreement
Exhibit G         --   Form of Perfection Certificate
Exhibit H         --   Form of Security Agreement
Exhibit I         --   Form of Subordination Agreement
Exhibit J         --   Form of Opinion of Counsel
<PAGE>

                                    CREDIT AGREEMENT dated as of September 20,
                           1999, as amended and restated as of October 20, 2000,
                           among CRICKET COMMUNICATIONS HOLDINGS, INC., a
                           Delaware corporation, CRICKET COMMUNICATIONS, INC., a
                           Delaware corporation, the LENDERS party hereto, and
                           LUCENT TECHNOLOGIES INC., as Administrative Agent.

                   WHEREAS the parties hereto have entered into the Credit
Agreement dated as of September 20, 1999 (as previously amended, the "Existing
                                                                      --------
Agreement") and have agreed to amend and restate the Existing Agreement in the
---------
form hereof;

                   NOW THEREFOR, the parties hereto agree as follows:

                                  ARTICLE I

                                  Definitions
                                  -----------

               SECTION 1.01. Defined Terms. As used in this Agreement, the
                             -------------
following terms have the meanings specified below:

               "ABR", when used in reference to any Loan or Borrowing, refers to
                ---
whether such Loan, or the Loans comprising such Borrowing, are bearing interest
at a rate determined by reference to the Alternate Base Rate.

               "Adjusted LIBO Rate" means, with respect to any LIBOR Borrowing
                ------------------
for any Interest Period, an interest rate per annum (rounded upwards, if
necessary, to the next 1/16 of 1%) equal to (a) the LIBO Rate for such Interest
Period multiplied by (b) the Statutory Reserve Rate.

               "Administrative Agent" means Lucent, in its capacity as
                --------------------
administrative agent for the Lenders hereunder.

               "Administrative Questionnaire" means an administrative
                ----------------------------
questionnaire in a form supplied by the Administrative Agent.

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

               "Agency Plan" has the meaning assigned to such term in the
                -----------
Purchase Agreement.

               "Agents" means the Administrative Agent and the Collateral Agent.
                ------
"Airgate Debt" means Permitted License Acquisition Debt, in an amount not
 ------------
exceeding $7,100,000, owed to Airgate Wireless, LLC as consideration for the
licenses listed on Schedule 1.01(a).

               "Alternate Base Rate" means, for any day, a rate per annum equal
                -------------------
to the greater of (a) the Prime Rate in effect on such day and (b) the Federal
Funds Effective

                                       1
<PAGE>

Rate in effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate
due to a change in the Prime Rate or the Federal Funds Effective Rate shall be
effective from and including the effective date of such change in the Prime Rate
or the Federal Funds Effective Rate, respectively.

               "Annualized EBITDA" means, as of any date, (a) Consolidated
                -----------------
EBITDA for the period of two consecutive fiscal quarters ended on such date (or,
if such date is not the last day of a fiscal quarter, then for the period of two
consecutive fiscal quarters most recently ended prior to such date), multiplied
by (b) two.

                "Applicable Margin" means, for any day, the applicable rate per
                 -----------------
annum set forth below under the caption "ABR Margin" or "Eurodollar Margin", as
the case may be, based on the Leverage Ratio as of the most recent determination
date:

<TABLE>
<CAPTION>
================================================================================================================================
                                 Leverage Ratio                                     ABR Margin              Eurodollar Margin
                                 --------------                                     ----------              -----------------
<S>             <C>                                                                 <C>                     <C>
Category 1               (less than or equal to)4.0 to 1.0                              2.50%                      3.50%
--------------------------------------------------------------------------------------------------------------------------------
Category 2      (greater than) 4.0 to 1.0 but (less than or equal to) 6.0 to 1.0        2.75%                      3.75%
--------------------------------------------------------------------------------------------------------------------------------
Category 3                 (greater than) 6.0 to 1.0 but                                3.00%                      4.00%
                        (less than or equal to) 10.0 to 1.0
--------------------------------------------------------------------------------------------------------------------------------
Category 4                  (greater than)10.0 to 1.0                                   3.25%                      4.25%
================================================================================================================================
</TABLE>

For purposes of the foregoing, (i) the Leverage Ratio shall be determined as of
the end of each fiscal quarter of the Borrower's fiscal year based upon the
Borrower's consolidated financial statements delivered pursuant to Section
5.01(a) or (b) and (ii) each change in the Applicable Margin resulting from a
change in the Leverage Ratio shall be effective during the period commencing on
and including the date of delivery to the Administrative Agent of such
consolidated financial statements indicating such change and ending on the date
immediately preceding the effective date of the next such change; provided that
                                                                  --------
the Leverage Ratio shall be deemed to be in Category 4 (A) at any time that an
Event of Default has occurred and is continuing or (B) if the Borrower fails to
deliver the consolidated financial statements required to be delivered by it
pursuant to Section 5.01(a) or (b) within the period specified therein for
delivery thereof, during the period from the expiration of the period specified
therein for delivery thereof until such consolidated financial statements are
delivered.

               "Assignment and Acceptance" means an assignment and acceptance
                -------------------------
entered into by a Lender and an assignee (with the consent of any party whose
consent is required by Section 9.04), and accepted by the Administrative Agent,
in a form approved by the Administrative Agent.

               "Available Commitment" means, with respect to each Lender, its
                --------------------
Commitment; provided that the aggregate "Available Commitments" of the Lucent
            --------
Lenders shall not at any time exceed the excess, if any, of $815,000,000 over
the aggregate principal amount of outstanding Lucent Loans at such time. At any
time that there is more than one Lucent Lender with a Commitment and the
"Available Commitments" of the Lucent Lenders are limited as a result of the
forgoing proviso, the

                                       2
<PAGE>

aggregate "Available Commitments" of the Lucent Lenders shall be allocated
between the Lucent Lenders pro rata in accordance with their respective
Commitments unless otherwise agreed between such Lucent Lenders (it being
understood that any such allocation shall not result in a Lucent Lender's
Available Commitment exceeding its Commitment). For purposes of this definition,
if a Lender that is not a Lucent Lender has a Commitment that, when funded,
would result in a Lucent Loan, then such Lender shall be deemed to be a Lucent
Lender solely for purposes of determining the extent to which such Commitment is
an Available Commitment.

               "Availability Period" means the period from and including the
                -------------------
Initial Availability Date to but excluding the earlier of the Availability
Termination Date and the date of termination of the Commitments.

               "Availability Termination Date" means the date that is 36 months
                -----------------------------
after the Effective Date.

               "Board" means the Board of Governors of the Federal Reserve
                -----
System of the United States of America.

               "Borrower" means Cricket Communications, Inc., a Delaware
                --------
corporation. "Borrower Pledge Agreement" means the Pledge Agreement dated as of
November 24, 1999, among Holdings, the Borrower, its Subsidiaries and the
Collateral Agent, which when originally executed was substantially in the form
of Exhibit A.

               "Borrowing" means a Loan or group of Loans of the same Type,
                ---------
made, converted or continued on the same date and, in the case of LIBOR Loans,
as to which a single Interest Period is in effect.

               "Borrowing Request" means a request by the Borrower for a
                -----------------
Borrowing in accordance with Section 2.03.

               "BTA" means a Basic Trading Area, as defined in Rand McNally
                ---
Commercial Atlas and Marketing Guide and used by the Federal Communications
Commission in connection with the award of wireless telecommunications licenses.

               "Business Day" means any day that is not a Saturday, Sunday or
                ------------
other day on which commercial banks in New York City are authorized or required
by law to remain closed; provided that, when used in connection with a LIBOR
                         --------
Loan, the term "Business Day" shall also exclude any day on which banks are not
                ------------
open for dealings in dollar deposits in the London interbank market.

               "Business Plan" means, for any fiscal year, the business plan
                -------------
of the Borrower and the Subsidiaries for such fiscal year.

               "Capital Expenditures" means, for any period, (a) the additions
                --------------------
to property, plant and equipment and other capital expenditures of the Borrower
and its Subsidiaries that are (or would be) set forth in a consolidated
statement of cash flows of the Borrower for such period prepared in accordance
with GAAP and (b) Capital Lease Obligations incurred by the Borrower and its
Subsidiaries during such period.

                                       3
<PAGE>

               "Capital Lease Obligations" of any Person means the obligations
                -------------------------
of such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

               "Cash Interest Expense" means, for any period, the sum of (a)
                ---------------------
interest expense of the Borrower and the Subsidiary Loan Parties for such
period, determined on a consolidated basis in accordance with GAAP, excluding
(to the extent otherwise included therein) (i) amortization of debt discounts
and loan fees, (ii) interest expense in respect of any Indebtedness that
constitutes a Primary Subordinated Obligation and (iii) any other interest that
is not required to be paid during such period or within one year after the end
of such period, plus (b) the aggregate amount of Restricted Payments made during
such period pursuant to clauses (d) or (e) of Section 6.06.

               "Change in Control" means (a) the acquisition of ownership,
                -----------------
directly or indirectly, beneficially or of record, by any Person other than
Holdings of any Equity Interest in the Borrower, (b) the acquisition of
ownership, directly or indirectly, beneficially or of record, by any Person
other than the Parent of any Equity Interest in any License Subsidiary, (c) the
sale, transfer or other disposition by the Parent of any Equity Interest in
Holdings, (d) the failure by the Parent to own, beneficially and of record,
Voting Stock of Holdings representing at least 51% of the combined voting power
of all Voting Stock of Holdings, (e) the failure by the Parent to have the
ability (without the consent or approval of any other Person) to control the
election of at least a majority of the board of directors of Holdings, (f) the
acquisition of beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission under the Securities Exchange Act of 1934),
directly or indirectly, by any Person (or two or more Persons acting in
concert), other than the Parent, of Voting Stock of Holdings (or other
securities convertible into such Voting Stock) representing 15% or more of the
combined voting power of all Voting Stock of Holdings, (g) the acquisition of
beneficial ownership (within the meaning of such Rule 13d-3), directly or
indirectly, by any Person (or two or more Persons acting in concert) of Voting
Stock of the Parent (or other securities convertible into such Voting Stock)
representing 20% or more of the combined voting power of all Voting Stock of the
Parent, (h) the failure on any day of at least a majority of the board of
directors of the Parent to be comprised of (i) individuals who were directors of
the Parent as of the later of the date 18 months prior to such day or September
1, 1999, and (ii) individuals whose nomination as directors was approved by
individuals who were directors of the Parent as of the later of the date 18
months prior to such day or September 1, 1999, or (i) the acquisition, by
contract or otherwise, of the power to exercise, directly or indirectly, Control
of the Parent by any Person (or two or more Persons acting in concert), or the
entering into of any contract or arrangement that, upon consummation, will
result in such acquisition of power. For purposes of the foregoing, "Voting
                                                                     ------
Stock" means Equity Interests issued by a Person the holders of which are
-----
ordinarily, in the absence of contingencies, entitled to vote for the election
of directors (or persons performing similar functions) of such Person, even if
the right so to vote has been suspended by the happening of such contingency.
The grant by the Parent of a Lien on any Equity Interest in Holdings shall not
constitute a Change in Control unless and until any action is taken to exercise
remedies in respect of such Lien.

                                       4
<PAGE>

               "Change in Law" means (a) the adoption of any law, rule or
                -------------
regulation after the date of this Agreement, (b) any change in any law, rule or
regulation or in the interpretation or application thereof by any Governmental
Authority after the date of this Agreement or (c) compliance by any Lender (or,
for purposes of Section 2.13(b), by any lending office of such Lender or by such
Lender's holding company, if any) with any request, guideline or directive
(whether or not having the force of law) of any Governmental Authority made or
issued after the date of this Agreement.

               "ChaseTel" means Chase Telecommunications, Inc., a Delaware
                --------
corporation.

               "ChaseTel Acquisition" means the purchase of ChaseTel, ChaseTel
                --------------------
Licensee and certain related assets pursuant to and as contemplated by the
ChaseTel Purchase Agreement.

               "ChaseTel Credit Agreement" means the Credit Agreement dated as
                -------------------------
of June 26, 1998, as amended, between ChaseTel and QUALCOMM Incorporated.

               "ChaseTel Earnout" means (a) the obligation to pay the "Earnout
                ----------------
Amount" (as defined in the ChaseTel Purchase Agreement) or (b) any payment made
in respect of such obligation.

               "ChaseTel Indebtedness" means any Indebtedness of ChaseTel
                ---------------------
existing at the time of consummation of the ChaseTel Acquisition, including any
Indebtedness outstanding under the ChaseTel Credit Agreement.

               "ChaseTel Licensee" means ChaseTel Licensee Corp., a Delaware
                -----------------
corporation.

               "ChaseTel Loans" means Loans outstanding hereunder in an
                --------------
aggregate principal amount equal to [*] of the aggregate Purchase Price of all
equipment purchased pursuant to the Purchase Agreement that has been resold by
the Borrower or a Subsidiary to ChaseTel as contemplated by Section 6.04(c);
provided that (a) the "ChaseTel Loans" shall be reduced by the principal amount
--------
of any Loans prepaid pursuant to clause (iii) of Section 6.04(c) and (b) no
Loans shall constitute "ChaseTel Loans" after the ChaseTel Acquisition is
consummated in accordance with Section 6.04(a) or after the Parent prepays the
ChaseTel Loans in accordance with Section 7 of the Parent Agreement.

               "ChaseTel Purchase Agreement" means the Asset Purchase Agreement
                ---------------------------
dated as of December 24, 1998, as amended, among the Parent, Chase
Telecommunications Holdings, Inc., ChaseTel, Anthony Chase and Richard McDugald.

               "Code" means the Internal Revenue Code of 1986, as amended from
                ----
time to time.

               "Collateral" means any and all "Collateral", as defined in any
                ----------
applicable Security Document.

               "Collateral Agency Agreement" means the Collateral Agency and
                ---------------------------
Intercreditor Agreement among the Borrower, the Collateral Agent, the
Administrative Agent and other holders of Eligible Secured Debt (or their
representatives) that become

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted
material has been filed seperately with the Securities and Exchange
Commission.

                                       5
<PAGE>

parties thereto as provided therein, which is (or will be) substantially in the
form of Exhibit B after giving effect to the amendment and restatement thereof
on or about the Restatement Date.

               "Collateral Agent" means State Street Bank and Trust Company
                ----------------
in its capacity as collateral agent for the Secured Parties (as defined in the
Collateral Agency Agreement) under the Security Documents.

               "Collateral and Guarantee Requirement" means the requirement
                ------------------------------------
that:

               (a) the Collateral Agent shall have received from Holdings and
          each Subsidiary Loan Party either (i) a counterpart of the Guarantee
          Agreement duly executed and delivered on behalf of such Subsidiary
          Loan Party or (ii) in the case of any Person that becomes a Subsidiary
          Loan Party after the Effective Date, a supplement to the Guarantee
          Agreement, in the form specified therein, duly executed and delivered
          on behalf of such Subsidiary Loan Party;

               (b) the Collateral Agent shall have received (i) from the Parent
          a counterpart of the Parent Pledge Agreement duly executed and
          delivered on behalf of the Parent, (ii) from Holdings, the Borrower
          and each of its Subsidiaries either (A) a counterpart of the Borrower
          Pledge Agreement duly executed and delivered on behalf of the Borrower
          or such Subsidiary, as applicable, or (B) in the case of any Person
          that becomes a Subsidiary after the Effective Date, a supplement to
          the Borrower Pledge Agreement, in the form specified therein, duly
          executed and delivered on behalf of such Subsidiary, and (iii) from
          the Borrower and each Subsidiary Loan Party either (A) counterparts of
          each of the Security Agreement and the Indemnity, Subrogation and
          Contribution Agreement duly executed and delivered on behalf of the
          Borrower or such Subsidiary Loan Party, as applicable, or (B) in the
          case of any Person that becomes a Subsidiary Loan Party after the
          Effective Date, a supplement to each such agreement, in the form
          specified therein, duly executed and delivered on behalf of such
          Subsidiary Loan Party;

               (c) all outstanding Equity Interests of the Borrower and each
          Subsidiary Loan Party owned by or on behalf of any Loan Party shall
          have been pledged pursuant to the applicable Pledge Agreement and the
          Collateral Agent shall have received certificates or other instruments
          representing all such Equity Interests, together with stock powers or
          other instruments of transfer with respect thereto endorsed in blank;

               (d) all Indebtedness of Holdings, the Borrower and each
          Subsidiary Loan Party that is owing to any Loan Party (except for
          Indebtedness of Holdings that is owing to the Parent) shall be
          evidenced by a promissory note and shall have been pledged pursuant to
          the applicable Pledge Agreement and the Collateral Agent shall have
          received all such promissory notes, together with instruments of
          transfer with respect thereto endorsed in blank;

               (e) all documents and instruments, including Uniform Commercial
          Code financing statements, required by law or reasonably requested by
          either Agent to be filed, registered or recorded to create the Liens
          intended to be created by the Security Agreement and perfect such
          Liens to the extent required by, and with the

                                       6
<PAGE>

          priority required by, the Security Agreement, shall have been filed,
          registered or recorded or delivered to the Collateral Agent for
          filing, registration or recording;

               (f) the Collateral Agent shall have received (i) counterparts of
          a Mortgage with respect to each Mortgaged Property duly executed and
          delivered by the record owner of such Mortgaged Property, (ii) a
          policy or policies of title insurance issued by a nationally
          recognized title insurance company insuring the Lien of each such
          Mortgage as a valid first Lien on the Mortgaged Property described
          therein, free of any other Liens except as expressly permitted by
          Section 6.02, together with such endorsements, coinsurance and
          reinsurance as either Agent or the Required Lenders may reasonably
          request, and (iii) such surveys, abstracts, appraisals, legal opinions
          and other documents as either Agent or the Required Lenders may
          reasonably request with respect to any such Mortgage or Mortgaged
          Property; and

               (g) each Loan Party shall have obtained all consents and
          approvals required to be obtained by it in connection with the
          execution and delivery of the Guarantee Agreement and all Security
          Documents to which it is a party, the performance of its obligations
          thereunder and the granting by it of the Liens under such Security
          Documents.

               "Commitment" means, with respect to each Lender, the commitment,
                ----------
if any, of such Lender to make Loans hereunder during the Availability Period,
expressed as an amount representing the maximum principal amount of the Loans to
be made by such Lender hereunder, as such commitment may be (a) reduced from
time to time pursuant to Section 2.06 and (b) reduced or increased from time to
time pursuant to assignments by or to such Lender pursuant to Section 9.04. The
initial amount of each Lender's Commitment is set forth on Schedule 2.01 (which
has been modified to reflect the remaining amount of each Lender's Commitment as
of the Restatement Date), or in the Assignment and Acceptance pursuant to which
such Lender shall have assumed its Commitment, as applicable.

               "Commitment Fee Rate" means a rate per annum equal to (a) 1.25%
                -------------------
until the aggregate principal amount of Loans made hereunder (whether or not
repaid) equals $450,000,000, (b) 1.00% thereafter, until the aggregate principal
amount of Loans made hereunder (whether or not repaid) equals $900,000,000 and
(c) 0.75% thereafter.

               "Consolidated EBITDA" means, for any period, Consolidated Net
                -------------------
Income for such period (adjusted to exclude all extraordinary items), plus,
without duplication and to the extent deducted from revenues in determining such
Consolidated Net Income, the sum of (a) consolidated interest expense for such
period, (b) consolidated income tax expense for such period, and (c) all amounts
attributable to depreciation and amortization for such period all as determined
on a consolidated basis in accordance with GAAP.

               "Consolidated Net Income" means, for any period, the net income
                -----------------------
or loss of the Borrower and the Subsidiary Loan Parties for such period
determined on a consolidated basis in accordance with GAAP; provided that there
                                                            --------
shall be excluded (a) the income of any Person (other than the Borrower or a
Subsidiary Loan Party) in which any other Person (other than the Borrower or any
Subsidiary or any director holding qualifying shares in compliance with
applicable law) owns an Equity Interest, except to the extent of the amount of
dividends or other distributions actually paid to the Borrower

                                       7
<PAGE>

or any of the Subsidiaries during such period, and (b) the income or loss of any
Person accrued prior to the date it becomes a Subsidiary Loan Party or is merged
into or consolidated with the Borrower or any Subsidiary Loan Party or the date
that such Person's assets are acquired by the Borrower or any Subsidiary Loan
Party.

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

               "Covered POPS" means, at any time, the aggregate number of POPS
                ------------
within the service areas of the facilities that are then owned by the Borrower
and its Subsidiaries and that have been placed in commercial operation; provided
                                                                        --------
that during the period from the Effective Date up to and including the earlier
of (a) the consummation of the ChaseTel Acquisition in accordance with Section
6.04 and (b) the date that is one year after the Effective Date, "Covered POPS"
                                                                  ------------
shall also include the aggregate number of POPS within the service areas of the
facilities that are then owned by ChaseTel and that have been placed in
commercial operation so long as such commercial operation is being managed by
the Borrower and its Subsidiaries pursuant to a management contract with
ChaseTel.

               "Default" means any event or condition which constitutes an Event
                -------
of Default or which upon notice, lapse of time or both would, unless cured or
waived, become an Event of Default.

               "Disclosed Matters" means the actions, suits and proceedings and
                -----------------
the environmental matters disclosed in Schedule 3.06.

               "Disqualified Stock" means any capital stock of Holdings, the
                ------------------
Borrower or any Subsidiary which by its terms (or by the terms of any security
into which it is convertible or for which it is exchangeable or exercisable) or
upon the happening of any event (a) matures or is mandatorily redeemable
pursuant to a sinking fund obligation or otherwise, (b) is convertible or
exchangeable for Indebtedness or Disqualified Stock, (c) requires the payment of
dividends other than dividends payable solely in additional shares of capital
stock of Holdings (other than Disqualified Stock) or (d) is redeemable or
subject to required repurchase at the option of the holder thereof, in whole or
in part.

               "dollars" or "$" refers to lawful money of the United States of
                -------      -
America.

               "Effective Date" means the date on which the conditions specified
                --------------
in Section 4.01 were satisfied (or waived in accordance with Section 9.02). The
parties hereto acknowledge that the Effective Date occurred on November 24,
1999.

               "Eligible Agency Plan Payments" means amounts paid or payable by
                -----------------------------
the Borrower pursuant to invoices delivered by vendors (other than Lucent) for
purchases pursuant to the Agency Plan of equipment that is being installed in
geographic markets in which the Borrower has installed or is installing a Lucent
mobile switching center (or which is serviced or to be serviced by a Lucent
mobile switching center) and in which substantially all of Borrower's radio base
stations are Lucent radio base stations, excluding any such amounts attributable
to sales taxes; provided that such amounts shall
                --------

                                       8
<PAGE>

not constitute "Eligible Agency Plan Payments" to the extent that the aggregate
of all such amounts would exceed [*].

               "Eligible Assignee" means (a) Lucent or any Affiliate of Lucent,
                -----------------
(b) any commercial bank or other financial institution (including any credit
corporation), in each case that either (i) has total assets in excess of
$10,000,000,000, (ii) has a combined capital and surplus and undivided profits
in excess of $700,000,000, (iii) has long-term indebtedness rated BBB- or better
by S&P or Baa3 or better by Moody's, or commercial paper having one of the two
highest credit ratings obtainable from S&P or Moody's, or (iv) has an Affiliate
that satisfies any of the criteria described in the foregoing clauses (i), (ii)
and (iii), or (c) any fund that is regularly engaged in making, purchasing or
investing in loans or securities that is controlled by an institution described
in clause (b) above or by any other nationally recognized investment fund
manager.

               "Eligible Parent Debt" means Indebtedness of the Parent in
                --------------------
respect of debt securities issued in an underwritten public offering or private
placement pursuant to Rule 144A; provided that (a) such Indebtedness shall not
                                 --------
mature, nor shall any scheduled repayment of any principal thereof be due, nor
shall such Indebtedness be subject to any mandatory redemption or required
repurchase, conversion or exchange (whether upon the occurrence of any
contingency or otherwise, but excluding contingent redemption offer provisions
in the event of a "change of control" or "asset sale" that are customary for
similar debt securities), in each case prior to the date that is one year after
the Maturity Date, (b) any covenants, events of default and similar provisions
relating thereto shall be reasonably satisfactory to the Required Lenders, (c)
the obligations of the Parent in respect thereof shall not be Guaranteed by any
Loan Party (except for Holdings) or secured by any Lien (except for a Lien on
the collateral account established to fund interest payments as provided in
clause (d) below) and (d) by its terms, no interest shall be payable in respect
of such Indebtedness (other than (i) by the issuance of additional Eligible
Parent Debt or (ii) out of a collateral account funded by the Parent from the
net proceeds of the issuance of such Indebtedness in an amount sufficient to pay
such cash interest) prior to October 1, 2003 and (e) the net proceeds of such
Indebtedness (other than the portion, if any, of such net proceeds (i) applied
to fund any collateral account established to fund interest payments as provided
above or (ii) not exceeding [*] to be used to purchase FCC Licenses (either
directly as an asset purchase or as a portion of the consideration for the
acquisition of an entity that owns an FCC License, such portion not to exceed
the value of such FCC License) which are contributed to a License Subsidiary
prior to September 30, 2000; provided that all proceeds described in this clause
                             --------
(ii) shall be held in an interest-bearing account until so used and, to the
extent such proceeds and the accrued interest thereon are not used to purchase
FCC Licenses prior to September 30, 2000, such unused proceeds and accrued
interest shall be contributed to the Borrower as common equity on September 30,
2000) are contributed by the Parent to Holdings as common equity or are used to
repay, in an amount not to exceed $51,000,000, a promissory note issued by the
Parent to Holdings as consideration for the purchase price of equity in Holdings
and then, in each case, contributed by Holdings to the Borrower as common
equity.

               "Eligible Secured Debt" means (a) Indebtedness of the Borrower in
                ---------------------
respect of the Loans, (b) any other Indebtedness for borrowed money of the
Borrower incurred to finance the purchase price of (i) equipment purchased by
the Borrower and its Subsidiaries (other than pursuant to the Purchase
Agreement) for use in their wireless telecommunications and data networking
business and/or (ii) services purchased by the

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                       9
<PAGE>

Borrower and its Subsidiaries (other than pursuant to the Purchase Agreement)
related to the design, construction or installation of their wireless
telecommunications and data networks that incorporate equipment referred to in
clause (i) above (including site acquisition services), (c) any other
Indebtedness for borrowed money of the Borrower incurred to finance payments in
respect of fees related to or interest in respect of Eligible Secured Debt
(other than the Loans) or the purchase price of any FCC License that is acquired
by a License Subsidiary and is to be used in the business of the Borrower and
its Subsidiaries after the purchase thereof (provided that such FCC License is
acquired by a License Subsidiary free of any Liens and is not purchased subject
to any FCC Debt, Permitted License Acquisition Debt or other Indebtedness), and
(d) any Indebtedness for borrowed money of the Borrower incurred to refinance
Indebtedness referred to in clause (a), (b) or (c) above in compliance with the
proviso to clause (f) of Section 6.01 (other than clause (v) of such proviso);
provided that:
--------

                    (i)    in the case of any Indebtedness described in clause
               (b) above, (A) such Indebtedness is incurred, for equipment,
               within six months after the later of the acquisition, the
               completion of construction and final acceptance or the
               commencement of full operation of the relevant equipment, and,
               for services, within six months of the completion thereof, (B)
               the principal amount thereof does not exceed 100% of the purchase
               price of the equipment or services (as applicable) financed
               thereby and (C) such equipment becomes Collateral under the
               Security Agreement upon the purchase thereof (free of any Liens
               other than the Lien of the Security Agreement);

                    (ii)   in the case of any Indebtedness described in clause
               (c) above, at the time of and after giving effect to the
               incurrence of any such Indebtedness the aggregate principal
               amount of all Indebtedness described in clause (c) above that has
               been incurred (on a cumulative basis, whether or not such
               Indebtedness remains outstanding) shall not exceed the sum of (A)
               50% of the aggregate principal amount of all Indebtedness
               described in clause (b) above that has been incurred (on a
               cumulative basis, whether or not such Indebtedness remains
               outstanding) at or prior to such time plus (B) $100,000,000;
               provided that Indebtedness incurred in reliance upon clause (B)
               --------
               shall not be incurred to finance fees related to Eligible Secured
               Debt;

                    (iii)  in the case of any Indebtedness described in clause
               (b) or (c) above, at the time of and after giving effect to the
               incurrence of any such Indebtedness the aggregate principal
               amount of all such Indebtedness that has been incurred and all
               Loans that have been incurred (in each case, on a cumulative
               basis, whether or not such Indebtedness or Loans remain
               outstanding) shall not exceed $1,845,000,000;

                    (iv)   in the case of any Indebtedness described in clause
               (b), (c) or (d) above, the holder or holders of such Indebtedness
               (or a duly authorized representative thereof on behalf of such
               holders) shall have become a party to the Collateral Agency
               Agreement as provided therein;

                    (v) in the case of any Indebtedness described in clause (b),
               (c) or (d) above, such Indebtedness is not Guaranteed by any
               Person (other than (A) pursuant to the Guarantee Agreement or (B)
               Guarantees that also Guarantee the Credit Facility Obligations
               (as defined in the Collateral Agency Agreement) equally and
               ratably) or secured by any Lien (other than Liens granted to the

                                      10
<PAGE>

               Collateral Agent to secure all Eligible Secured Debt pursuant to
               the Security Documents); and

                    (vi) in the case of any Indebtedness described in clause
               (b), (c) or (d) above, (A) the terms and conditions of such
               Indebtedness shall not be less favorable to the Borrower in any
               material respect than the terms and conditions of the Loans and
               shall not be inconsistent with the terms and conditions of the
               Loans, and (B) at the time of and after giving effect to the
               incurrence of any such Indebtedness, no Default shall have
               occurred and be continuing and the Borrower shall be in
               compliance with Sections 6.19 and 6.20 determined on a pro forma
               basis as of the last day of the most recently ended calendar
               quarter of the Borrower for which financial statements are
               available as though such Indebtedness had been incurred on such
               day.

                  "Environmental Laws" means all laws, rules, regulations,
                   ------------------
     codes, ordinances, orders, decrees, judgments, injunctions, notices or
     binding agreements issued, promulgated or entered into by any Governmental
     Authority, relating in any way to the environment, preservation or
     reclamation of natural resources, the management, release or threatened
     release of any Hazardous Material or to health and safety matters.

                  "Environmental Liability" means any liability, contingent or
                   -----------------------
     otherwise (including any liability for damages, costs of environmental
     remediation, fines, penalties or indemnities), of any Loan Party directly
     or indirectly resulting from or based upon (a) violation of any
     Environmental Law, (b) the generation, use, handling, transportation,
     storage, treatment or disposal of any Hazardous Materials, (c) exposure to
     any Hazardous Materials, (d) the release or threatened release of any
     Hazardous Materials into the environment or (e) any contract, agreement or
     other consensual arrangement pursuant to which liability is assumed or
     imposed with respect to any of the foregoing.

                  "Equipment Site Interest" means any ownership interest in, or
                   -----------------------
     right, title or interest under any lease, agreement or other arrangement
     providing for the right to use, any site upon or at which any
     infrastructure equipment owned by the Borrower or any Subsidiary is or is
     to be located.

                  "Equity Interests" means shares of capital stock, partnership
                   ----------------
     interests, membership interests in a limited liability company, beneficial
     interests in a trust or other equity ownership interests in a Person.

                  "ERISA" means the Employee Retirement Income Security Act of
                   -----
     1974, as amended from time to time.

                  "ERISA Affiliate" means any trade or business (whether or not
                   ---------------
     incorporated) that, together with the Borrower, is treated as a single
     employer under Section 414(b) or (c) of the Code or, solely for purposes of
     Section 302 of ERISA and Section 412 of the Code, is treated as a single
     employer under Section 414 of the Code.

                  "ERISA Event" means (a) any "reportable event", as defined in
                   -----------
     Section 4043 of ERISA or the regulations issued thereunder with respect to
     a Plan (other than an event for which the 30-day notice period is waived);
     (b) the existence with respect to any Plan of an "accumulated funding
     deficiency" (as defined in Section 412 of the Code or Section 302 of
     ERISA), whether or not waived; (c) the filing pursuant to Section 412(d)

                                      11
<PAGE>

     of the Code or Section 303(d) of ERISA of an application for a waiver of
     the minimum funding standard with respect to any Plan; (d) the incurrence
     by the Borrower or any of its ERISA Affiliates of any liability under Title
     IV of ERISA with respect to the termination of any Plan; (e) the receipt by
     the Borrower or any ERISA Affiliate from the PBGC or a plan administrator
     of any notice relating to an intention to terminate any Plan or Plans or to
     appoint a trustee to administer any Plan; (f) the incurrence by the
     Borrower or any of its ERISA Affiliates of any liability with respect to
     the withdrawal or partial withdrawal from any Plan or Multiemployer Plan;
     or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or
     the receipt by any Multiemployer Plan from the Borrower or any ERISA
     Affiliate of any notice, concerning the imposition of Withdrawal Liability
     or a determination that a Multiemployer Plan is, or is expected to be,
     insolvent or in reorganization, within the meaning of Title IV of ERISA.

                "Event of Default" has the meaning assigned to such term in
                 ----------------
     Article VII.

               "Excess Cash Flow" means, for any fiscal year of the Borrower,
                ----------------
     the sum (without duplication) of:

               (a) the Consolidated Net Income of the Borrower and the
          Subsidiary Loan Parties for such fiscal year, adjusted to exclude any
          gains or losses attributable to Prepayment Events; plus
                                                             ----

               (b) depreciation, amortization and other non-cash charges or
          losses deducted in determining such Consolidated Net Income for such
          fiscal year; plus
                       ----

               (c) the sum of (i) the amount, if any, by which Net Working
          Capital decreased during such fiscal year plus (ii) the net amount, if
          any, by which the consolidated deferred revenues of the Borrower and
          the Subsidiary Loan Parties increased during such fiscal year; minus
                                                                         -----

               (d) the sum of (i) any non-cash gains included in determining
          such consolidated net income (or loss) for such fiscal year plus (ii)
          the amount, if any, by which Net Working Capital increased during such
          fiscal year plus (iii) the net amount, if any, by which the
          consolidated deferred revenues of the Borrower and the Subsidiary Loan
          Parties decreased during such fiscal year; minus
                                                     -----

               (e) Capital Expenditures for such fiscal year (except to the
          extent attributable to the incurrence of Capital Lease Obligations or
          otherwise financed by incurring Long-Term Indebtedness); minus
                                                                   -----

               (f) the aggregate principal amount of Long-Term Indebtedness
          repaid or prepaid by the Borrower and the Subsidiary Loan Parties
          during such fiscal year, excluding (i) Eligible Secured Debt prepaid
          pursuant to Section 2.09(c) or (d), and (ii) repayments or prepayments
          of Long-Term Indebtedness financed by incurring other Long-Term
          Indebtedness; minus
                        -----

               (g) the aggregate amount of Restricted Payments made during such
          fiscal year pursuant to clauses (d) or (e) of Section 6.06.

               "Excluded Taxes" means, with respect to either Agent, any Lender
                --------------
          or any other recipient of any payment to be made by or on account of
          any obligation of the

                                      12
<PAGE>

          Borrower hereunder, (a) income or franchise taxes imposed on (or
          measured by) its net income by the United States of America, or by the
          jurisdiction under the laws of which such recipient is organized or in
          which its principal office is located or, in the case of any Lender,
          in which its applicable lending office is located, (b) any branch
          profits taxes imposed by the United States of America or any similar
          tax imposed by any other jurisdiction described in clause (a) above
          and (c) in the case of a Foreign Lender (other than an assignee
          pursuant to a request by the Borrower under Section 2.17(b)), any
          withholding tax that (i) is in effect and would apply to amounts
          payable to such Foreign Lender at the time such Foreign Lender becomes
          a party to this Agreement (or designates a new lending office), except
          to the extent that such Foreign Lender (or its assignor, if any) was
          entitled, at the time of designation of a new lending office (or
          assignment), to receive additional amounts from the Borrower with
          respect to any withholding tax pursuant to Section 2.15(a) or (ii) is
          attributable to such Foreign Lender's failure to comply with Section
          2.15(a).

                  "Existing Agreement" has the meaning set forth in the preamble
                   ------------------
          to this Agreement.

                  "FCC" means the Federal Communications Commission.
                   ---

                  "FCC Debt" means Indebtedness owing to the FCC in respect of
                   --------
          the deferred purchase price of any FCC License.

                  "FCC License" means any license granted by the FCC to the
                   -----------
          Borrower or any Subsidiary Loan Party or that is used by the Borrower
          or any Subsidiary in the conduct of its business.

                  "Federal Funds Effective Rate" means, for any day, the
                   ----------------------------
          weighted average (rounded upwards, if necessary, to the next 1/100 of
          1%) of the rates on overnight Federal funds transactions with members
          of the Federal Reserve System arranged by Federal funds brokers, as
          published on the next succeeding Business Day by the Federal Reserve
          Bank of New York, or, if such rate is not so published for any day
          that is a Business Day, the average (rounded upwards, if necessary, to
          the next 1/100 of 1%) of the quotations for such day for such
          transactions received by the Administrative Agent from three Federal
          funds brokers of recognized standing selected by it.

                  "Financial Officer" means the chief financial officer,
                   -----------------
          principal accounting officer, treasurer or controller of the Borrower.

                  "Fixed Charges" means, as of any date, the sum of (a) Cash
                   -------------
          Interest Expense, (b) Capital Expenditures and (c) scheduled principal
          payments of Indebtedness to be made by the Borrower or any Subsidiary
          Loan Party to any Person other than the Borrower or any Subsidiary
          Loan Party, in each case projected (to the extent necessary) for the
          period of four consecutive fiscal quarters of the Borrower beginning
          on such date or, if such date is not the first day of a fiscal quarter
          of the Borrower, beginning on the last day of the fiscal quarter of
          the Borrower most recently ended on such date.

                  "Foreign Lender" means any Lender that is organized under the
                   --------------
          laws of a jurisdiction other than the United States of America, any
          State thereof or the District of Columbia.

                                      13
<PAGE>

                  "GAAP" means generally accepted accounting principles in the
                   ----
          United States of America.

                  "Governmental Authority" means the government of the United
                   ----------------------
          States of America, any other nation or any political subdivision
          thereof, whether state or local, and any agency, authority,
          instrumentality, regulatory body, court, central bank or other entity
          exercising executive, legislative, judicial, taxing, regulatory or
          administrative powers or functions of or pertaining to government.

                  "Guarantee" of or by any Person (the "guarantor") means any
                   ---------                            ---------
          obligation, contingent or otherwise, of the guarantor guaranteeing or
          having the economic effect of guaranteeing any Indebtedness or other
          obligation of any other Person (the "primary obligor") in any manner,
                                               ------- -------
          whether directly or indirectly, and including any obligation of the
          guarantor, direct or indirect, (a) to purchase or pay (or advance or
          supply funds for the purchase or payment of) such Indebtedness or
          other obligation or to purchase (or to advance or supply funds for the
          purchase of) any security for the payment thereof, (b) to purchase or
          lease property, securities or services for the purpose of assuring the
          owner of such Indebtedness or other obligation of the payment thereof,
          (c) to maintain working capital, equity capital or any other financial
          statement condition or liquidity of the primary obligor so as to
          enable the primary obligor to pay such Indebtedness or other
          obligation or (d) as an account party in respect of any letter of
          credit or letter of guaranty issued to support such Indebtedness or
          obligation; provided, that the term Guarantee shall not include
                      --------
          endorsements for collection or deposit in the ordinary course of
          business.

                  "Guarantee Agreement" means the Guarantee Agreement dated as
                   -------------------
          of November 24, 1999, among Holdings, the Subsidiary Loan Parties and
          the Collateral Agent, which when originally executed was substantially
          in the form of Exhibit C.

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

                  "Hedging Agreement" means any interest rate protection
                   -----------------
          agreement, foreign currency exchange agreement, commodity price
          protection agreement or other interest or currency exchange rate or
          commodity price hedging arrangement.

                  "Holdings" means Cricket Communications Holdings, Inc., a
                   --------
          Delaware corporation.

                  "Indebtedness" of any Person means, without duplication, (a)
                   ------------
          all obligations of such Person for borrowed money or with respect to
          deposits or advances of any kind, (b) all obligations of such Person
          evidenced by bonds, debentures, notes or similar instruments, (c) all
          obligations of such Person upon which interest charges are customarily
          paid, (d) all obligations of such Person under conditional sale or
          other title retention agreements relating to property acquired by such
          Person, (e) all obligations of such Person in respect of the deferred
          purchase price of property or services (excluding current accounts
          payable incurred in the ordinary course of business), (f) all
          Indebtedness of others secured by (or for which the holder of such
          Indebtedness has an existing right, contingent or otherwise, to be
          secured by) any Lien on property owned or acquired by

                                      14
<PAGE>

          such Person, whether or not the Indebtedness secured thereby has been
          assumed, (g) all Guarantees by such Person of Indebtedness of others,
          (h) all Capital Lease Obligations of such Person, (i) all obligations,
          contingent or otherwise, of such Person as an account party in respect
          of letters of credit and letters of guaranty (j) all obligations,
          contingent or otherwise, of such Person in respect of bankers'
          acceptances and (k) all Disqualified Stock of such Person. The
          Indebtedness of any Person shall include the Indebtedness of any other
          entity (including any partnership in which such Person is a general
          partner) to the extent such Person is liable therefor as a result of
          such Person's ownership interest in or other relationship with such
          entity, except to the extent the terms of such Indebtedness provide
          that such Person is not liable therefor.

                  "Indemnified Taxes" means Taxes other than Excluded Taxes.
                   -----------------

                  "Indemnity, Subrogation and Contribution Agreement" means the
                   -------------------------------------------------
          Indemnity, Subrogation and Contribution Agreement dated as of November
          24, 1999, among the Borrower, the Subsidiary Loan Parties and the
          Collateral Agent, which when originally executed was substantially in
          the form of Exhibit D.

                  "Initial Availability Date" means the first date after the
                   -------------------------
          Effective Date on which the conditions set forth in Section 4.02 are
          satisfied (or waived in accordance with Section 9.02).

                  "Intercompany Agreements" has the meaning set forth in Section
                   -----------------------
          5.15.

                  "Interest Borrowing" means any Borrowing of Loans hereunder
                   ------------------
          for the sole purpose of paying, and the proceeds of which are applied
          solely to pay, accrued interest on any Loans or accrued commitment
          fees payable under this Agreement.

                  "Interest Election Request" means a request by the Borrower to
                   -------------------------
          convert or continue a Borrowing in accordance with Section 2.05.

                  "Interest Payment Date" means (a) with respect to any ABR
                   ---------------------
          Loan, the last day of each March, June, September and December and (b)
          with respect to any LIBOR Loan, the last day of the Interest Period
          applicable to the Borrowing of which such Loan is a part and, in the
          case of a LIBOR Borrowing with an Interest Period of more than three
          months' duration, each day prior to the last day of such Interest
          Period that occurs at intervals of three months' duration after the
          first day of such Interest Period.

                  "Interest Period" means, with respect to any LIBOR Borrowing,
                   ---------------
          the period commencing on the date of such Borrowing and ending on the
          numerically corresponding day in the calendar month that is one, two,
          three or six months thereafter, as the Borrower may elect; provided,
                                                                     --------
          that (a) if any Interest Period would end on a day other than a
          Business Day, such Interest Period shall be extended to the next
          succeeding Business Day unless such next succeeding Business Day would
          fall in the next calendar month, in which case such Interest Period
          shall end on the next preceding Business Day and (b) any Interest
          Period that commences on the last Business Day of a calendar month (or
          on a day for which there is no numerically corresponding day in the
          last calendar month of such Interest Period) shall end on the last
          Business Day of the last calendar month of such Interest Period. For
          purposes hereof, the date of a Borrowing initially shall be the date
          on which such Borrowing is made and thereafter shall be the effective
          date of the most recent conversion or continuation of such Borrowing.

                                      15
<PAGE>

                  "Lenders" means the Persons listed on Schedule 2.01 and any
                   -------
          other Person that shall have become a party hereto pursuant to an
          Assignment and Acceptance, other than any such Person that ceases to
          be a party hereto pursuant to an Assignment and Acceptance.

                  "Leverage Ratio" means, on any date, the ratio of (a) Total
                   --------------
          Indebtedness as of such date to (b) Consolidated EBITDA for the period
          of four consecutive fiscal quarters of the Borrower ended on such date
          or, if such date is not the last day of a fiscal quarter, ended on the
          last day of the fiscal quarter of the Borrower most recently ended
          prior to such date.

                  "LIBOR", when used in reference to any Loan or Borrowing,
                   -----
          refers to whether such Loan, or the Loans comprising such Borrowing,
          are bearing interest at a rate determined by reference to the Adjusted
          LIBO Rate.

                  "LIBO Rate" means, with respect to any LIBOR Borrowing for any
                   ---------
          Interest Period, the rate appearing on Page 3750 of the Telerate
          Service (or on any successor or substitute page of such Service, or
          any successor to or substitute for such Service, providing rate
          quotations comparable to those currently provided on such page of such
          Service, as determined by the Administrative Agent from time to time
          for purposes of providing quotations of interest rates applicable to
          dollar deposits in the London interbank market) at approximately 11:00
          a.m., London time, two Business Days prior to the commencement of such
          Interest Period, as the rate for dollar deposits with a maturity
          comparable to such Interest Period. In the event that such rate is not
          available at such time for any reason, then the "LIBO Rate" with
                                                           ---------
          respect to such LIBOR Borrowing for such Interest Period shall be the
          rate at which dollar deposits of $5,000,000 and for a maturity
          comparable to such Interest Period are offered by the principal London
          office of the Administrative Agent (or, if the Administrative Agent at
          the time is not a commercial bank, any commercial bank based in New
          York City selected by the Administrative Agent for the purpose of
          quoting such rate, provided that such commercial bank has a combined
          capital and surplus and undivided profits of not less than
          $500,000,000) in immediately available funds in the London interbank
          market at approximately 11:00 a.m., London time, two Business Days
          prior to the commencement of such Interest Period.

                  "License Subsidiary" has the meaning assigned to such term in
                   ------------------
          Section 6.13.

                  "Lien" means, with respect to any asset, (a) any mortgage,
                   ----
          deed of trust, lien, pledge, hypothecation, encumbrance, charge or
          security interest in, on or of such asset, (b) the interest of a
          vendor or a lessor under any conditional sale agreement, capital lease
          or title retention agreement (or any financing lease having
          substantially the same economic effect as any of the foregoing)
          relating to such asset and (c) in the case of securities, any purchase
          option, call or similar right of a third party with respect to such
          securities.

                  "Loan Documents" means this Agreement, the Collateral Agency
                   --------------
          Agreement, the Guarantee Agreement, the Parent Agreement, the
          Subordination Agreement, the Security Documents, the Indemnity,
          Subrogation and Contribution Agreement, any promissory note issued in
          connection with the Loans, and all other agreements, documents,
          instruments or certificates executed and/or delivered by any

                                      16
<PAGE>

          Loan Party in connection herewith or therewith (other than purchase
          agreements and supply agreements and agreements, documents,
          instruments and certificates executed and/or delivered pursuant
          thereto).

                  "Loan Parties" means the Parent, Holdings, the Borrower and
                   ------------
          the Subsidiary Loan Parties.

                  "Loans" means loans made to the Borrower pursuant to this
                   -----
          Agreement.

                  "Long-Term Indebtedness" means any Indebtedness that, in
                   ----------------------
          accordance with GAAP, constitutes (or, when incurred, constituted) a
          long-term liability.

                  "Lucent" means Lucent Technologies Inc.
                   ------

                  "Lucent Lender" means any Lender that is Lucent or an
                   -------------
          Affiliate of Lucent.

                  "Lucent Lenders" means, at any time, Lucent and any Affiliates
                   --------------
          of Lucent that are Lenders at such time.

                  "Lucent Loan" means any Loan that is held by any Lucent Lender
                   -----------
          or that is Guaranteed by Lucent or any Affiliate thereof or for which
          Lucent or any Affiliate thereof is otherwise directly or indirectly
          liable, pursuant to a make-whole arrangement or otherwise.

                  "Material Adverse Effect" means a material adverse effect on
                   -----------------------
          (a) the business, assets, operations, prospects or condition
          (financial or otherwise) of the Borrower and the Subsidiary Loan
          Parties taken as a whole, (b) the ability of any Loan Party to perform
          any of its obligations under any Loan Document or (c) the rights of or
          benefits available to the Lenders under any Loan Document.

                  "Material Indebtedness" means (a) Indebtedness (other than the
                   ---------------------
          Loans), or obligations in respect of one or more Hedging Agreements,
          of any one or more of the Loan Parties in an aggregate principal
          amount exceeding $5,000,000, (b) any FCC Debt or (c) any Permitted
          License Acquisition Debt. For purposes of determining Material
          Indebtedness, the "principal amount" of the obligations of a Loan
          Party in respect of any Hedging Agreement at any time shall be the
          maximum aggregate amount (giving effect to any netting agreements)
          that such Loan Party would be required to pay if such Hedging
          Agreement were terminated at such time.

                  "Maturity Date" means June 30, 2007.
                   -------------

                  "Moody's" means Moody's Investors Service, Inc.
                   -------

                  "Mortgage" means a mortgage, deed of trust, assignment of
                   --------
          leases and rents, leasehold mortgage or other security document
          granting a Lien on any Mortgaged Property to secure the Obligations.
          Each Mortgage shall be satisfactory in form and substance to the
          Agents.

                                      17
<PAGE>

                  "Mortgaged Property" means each parcel of real property and
                   ------------------
          improvements thereto with respect to which a Mortgage is granted
          pursuant to Section 5.12.

                  "Multiemployer Plan" means a multiemployer plan as defined in
                   ------------------
          Section 4001(a)(3) of ERISA.

                  "Net Proceeds" means, with respect to any event (a) the cash
                   ------------
          proceeds received in respect of such event including (i) any cash
          received in respect of any non-cash proceeds, but only as and when
          received, (ii) in the case of a casualty, insurance proceeds, and
          (iii) in the case of a condemnation or similar event, condemnation
          awards and similar payments, net of (b) the sum of (i) all fees and
          out-of-pocket expenses paid by the Borrower and the Subsidiary Loan
          Parties to third parties (other than Affiliates) in connection with
          such event, (ii) in the case of a sale or other disposition of an
          asset (including pursuant to a sale and leaseback transaction or a
          casualty or condemnation), the amount of all payments required to be
          made by the Borrower and the Subsidiary Loan Parties as a result of
          such event to repay Indebtedness (other than Eligible Secured Debt)
          secured by such asset or otherwise subject to mandatory prepayment as
          a result of such event, and (iii) the amount of all taxes paid (or
          reasonably estimated to be payable) by the Borrower and the Subsidiary
          Loan Parties, and the amount of any reserves established by the
          Borrower and the Subsidiary Loan Parties to fund contingent
          liabilities reasonably estimated to be payable, in each case during
          the year that such event occurred or the next succeeding year and that
          are directly attributable to such event (as determined reasonably and
          in good faith by the chief financial officer of the Borrower).

                  "Net Working Capital" means, at any date, (a) the sum of the
                   -------------------
          consolidated current assets and non-current deferred income tax assets
          of the Borrower and the Subsidiary Loan Parties as of such date
          (excluding cash and Permitted Investments) minus (b) the sum of the
          consolidated current liabilities and non-current deferred income tax
          liabilities of the Borrower and the Subsidiary Loan Parties as of such
          date (excluding current liabilities in respect of Indebtedness),
          determined on a consolidated basis in accordance with GAAP. Net
          Working Capital at any date may be a positive or negative number. Net
          Working Capital increases when it becomes more positive or less
          negative and decreases when it becomes less positive or more negative.

                  "Obligations" has the meaning assigned to such term in the
                   -----------
          Collateral Agency Agreement.

                  "Other Loan Documents" has the meaning assigned to such term
                   --------------------
          in Section 3.07.

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

                  "PBGC" means the Pension Benefit Guaranty Corporation referred
                   ----
          to and defined in ERISA and any successor entity performing similar
          functions.

                  "Parent" means Leap Wireless International, Inc., a Delaware
                   ------
          corporation.

                                      18
<PAGE>

                  "Parent Agreement" means the agreement dated as of November
                   ----------------
          24, 1999, between the Parent and the Administrative Agent, which when
          originally executed was substantially in the form of Exhibit E.

                  "Parent Pledge Agreement" means the Parent Pledge Agreement
                   -----------------------
          dated as of November 24, 1999, between the Parent and the Collateral
          Agent, which when originally executed was substantially in the form of
          Exhibit F.

                  "Payment Date" means each March 31, June 30, September 30 and
                   ------------
          December 31, commencing on and including the first such date that is
          on or after the Availability Termination Date, and ending on and
          including the Maturity Date.

                  "Perfection Certificate" means a certificate in the form of
                   ----------------------
          Exhibit G or any other form approved by the Agents.

                  "Permitted ChaseTel Financing" means financing extended by the
                   ----------------------------
          Borrower or any Subsidiary to ChaseTel prior to consummation of the
          ChaseTel Acquisition in the form of (a) loans made by the Borrower (or
          by the Parent and assigned to the Borrower) pursuant to the ChaseTel
          Credit Agreement prior to the Initial Availability Date, (b) purchase
          money financing in respect of the purchase price of equipment sold by
          Lucent to the Borrower or a Subsidiary and then resold to ChaseTel on
          or after the Initial Availability Date and prior to the earlier of the
          consummation of the ChaseTel Acquisition and the date one year after
          the Effective Date in accordance with Section 6.04(c) or (c) other
          loans made by the Borrower to ChaseTel on or after the Initial
          Availability Date and prior to the earlier of the consummation of the
          ChaseTel Acquisition and the date one year after the Effective Date;
          provided that:
          --------

                    (i)    all such financing shall be made pursuant to the
               ChaseTel Credit Agreement and secured (together with the other
               Indebtedness outstanding under the ChaseTel Credit Agreement) by
               perfected, first-priority Liens on substantially all the assets
               of ChaseTel and its subsidiaries;

                    (ii)   in the case of financing referred to in clauses (b)
               and (c) above, the ChaseTel Credit Agreement and related
               documentation shall have been amended to provide for such
               financing and the security therefor, and such amendments and the
               related security arrangements shall be reasonably satisfactory to
               the Administrative Agent;

                    (iii)  in the case of financing referred to in clauses (b)
               and (c) above, such financing shall not be subordinated to any
               other Indebtedness and shall share pro rata in the benefits of
               the collateral security for the Indebtedness outstanding under
               the ChaseTel Credit Agreement;

                    (iv)   in the case of financing referred to in clause (b)
               above, the aggregate principal amount of such financing shall be
               limited as set forth in Section 6.04(c);

                    (v)    in the case of financing referred to in clause (c)
               above, the aggregate principal amount of such financing made
               available to ChaseTel shall not at any time exceed 50% of the
               aggregate principal amount of financing

                                      19
<PAGE>

               referred to in clause (b) above that has been made available to
               ChaseTel at such time;

                    (vi)   all such financing shall be evidenced by promissory
               notes of ChaseTel pledged pursuant to the Borrower Pledge
               Agreement;

                    (vii) if any payment is received by the Borrower or any
               Subsidiary from or on behalf of ChaseTel in respect of any such
               financing, then such payment shall be applied to prepay an equal
               principal amount of the outstanding principal amount of the
               outstanding Borrowings hereunder; and

                    (viii) upon consummation of the ChaseTel Acquisition, all
               obligations of ChaseTel in respect of such financing shall be
               terminated and all collateral security therefor shall be
               released.

                         "Permitted Encumbrances" means:
                          ----------------------

                         (a) Liens imposed by law for taxes that are not yet due
               or are being contested in compliance with Section 5.05;

                         (b) carriers', warehousemen's, mechanics', landlords',
               materialmen's, repairmen's and other like Liens imposed by law,
               arising in the ordinary course of business and securing
               obligations that are not overdue by more than 30 days or are
               being contested in compliance with Section 5.05;

                         (c) pledges and deposits made in the ordinary course of
               business in compliance with workers' compensation, unemployment
               insurance and other social security laws or regulations;

                         (d) deposits to secure the performance of bids, trade
               contracts, leases, statutory obligations, surety and appeal
               bonds, performance bonds and other obligations of a like nature,
               in each case in the ordinary course of business;

                         (e) judgment liens in respect of judgments that do not
               constitute an Event of Default under clause (k) of Article VII;
               and

                         (f) easements, zoning restrictions, rights-of-way and
               similar encumbrances on real property imposed by law or arising
               in the ordinary course of business that do not secure any
               monetary obligations and do not materially detract from the value
               of the affected property or interfere with the ordinary conduct
               of business of the Borrower or any Subsidiary;

          provided that the term "Permitted Encumbrances" shall not include any
          --------
          Lien securing Indebtedness.

                         "Permitted Holdings Debt" means Indebtedness of
                          -----------------------
          Holdings in respect of debt securities issued in an underwritten
          public offering or private placement pursuant to Rule 144A; provided
                                                                      --------
          that (a) such Indebtedness shall not mature, nor shall any scheduled
          repayment of any principal thereof be due, nor shall such Indebtedness
          be subject to any mandatory redemption or required repurchase,
          conversion or exchange (whether upon the occurrence of any contingency
          or otherwise, but excluding contingent redemption offer

                                      20
<PAGE>

          provisions in the event of a "change of control" or "asset sale" that
          are customary for similar debt securities), in each case prior to the
          date that is one year after the Maturity Date, (b) any covenants,
          events of default and similar provisions relating thereto shall be
          reasonably satisfactory to the Required Lenders, (c) the obligations
          of Holdings in respect thereof shall not be Guaranteed by any other
          Loan Party or secured by any Lien, (d) by its terms, no interest shall
          be payable in respect of such Indebtedness (other than (i) by the
          issuance of additional Permitted Holdings Debt or (ii) out of a cash
          reserve funded by Holdings from the net proceeds of the issuance of
          such Indebtedness in an amount sufficient to pay such cash interest)
          prior to the later of (A) the date that is five years after the date
          of issuance of such Indebtedness and (B) June 30, 2005, and (e) the
          net proceeds of such Indebtedness (other than the portion, if any, of
          such net proceeds applied to fund any cash reserve established to fund
          interest payments as provided above) are contributed by Holdings to
          the Borrower as common equity.

                    "Permitted Investments" means:
                     ---------------------

                    (a) direct obligations of, or obligations the principal of
               and interest on which are unconditionally guaranteed by, the
               United States of America (or by any agency thereof to the extent
               such obligations are backed by the full faith and credit of the
               United States of America), in each case maturing within one year
               from the date of acquisition thereof;

                    (b) investments in commercial paper maturing within 270 days
               from the date of acquisition thereof and having, at such date of
               acquisition, the highest credit rating obtainable from S&P or
               from Moody's;

                    (c) investments in certificates of deposit, banker's
               acceptances and time deposits maturing within 180 days from the
               date of acquisition thereof issued or guaranteed by or placed
               with, and money market deposit accounts issued or offered by, any
               domestic office of any commercial bank organized under the laws
               of the United States of America or any State thereof which has a
               combined capital and surplus and undivided profits of not less
               than $500,000,000; and

                    (d) fully collateralized repurchase agreements with a term
               of not more than 30 days for securities described in clause (a)
               above and entered into with a financial institution satisfying
               the criteria described in clause (c) above.

                    "Permitted License Acquisition Debt" means Indebtedness
                     ----------------------------------
          (other than FCC Debt) of any License Subsidiary in respect of the
          deferred purchase price of any FCC License purchased by such License
          Subsidiary; provided that (a) such Indebtedness shall not be secured
                      --------
          by any Lien, other than a Lien on the Equity Interests of the License
          Subsidiary that holds such FCC License, (b) arrangements satisfactory
          to the Agents shall have been made for the Lien granted under the
          Parent Pledge Agreement on the Equity Interests of such License
          Subsidiary to be perfected, subject to the prior Lien referred to in
          clause (a) above, (c) such Indebtedness shall mature within three
          years after the date such Indebtedness is incurred, and (d) the holder
          of such Indebtedness shall have entered into an agreement with the
          Administrative Agent, in form and substance reasonably satisfactory to
          the Administrative Agent, pursuant to which such holder shall have
          agreed to sell such Indebtedness upon demand to any holders of
          Eligible Secured Debt who elect to participate in such sale if an
          Event of Default has occurred and is continuing, for a

                                      21
<PAGE>

          purchase price equal to the outstanding principal amount thereof and
          accrued and unpaid interest thereon.

                  "Permitted Preferred Stock" means Disqualified Stock issued by
                   -------------------------
          Holdings; provided that (a) by its terms, no dividends shall be
                    --------
          payable in respect of such stock (other than by the issuance of
          additional shares of Permitted Preferred Stock) prior to the date that
          is one year after the Maturity Date, (b) such stock shall not mature
          or be subject to mandatory redemption or required repurchase,
          conversion or exchange (whether upon the occurrence of any contingency
          or otherwise) prior to the date that is one year after the Maturity
          Date, (c) any obligations of Holdings in respect of such stock shall
          not be Guaranteed by any other Loan Party or secured by any Lien, and
          (d) the net proceeds of such stock are contributed by Holdings to the
          Borrower as common equity.

                  "Permitted Third Party Payments" means (a) payments, not
                   ------------------------------
          exceeding $35,000,000, made to repay ChaseTel Indebtedness (other than
          any such Indebtedness owed to Leap or any subsidiary of Leap,
          including the Borrower) in connection with the ChaseTel Acquisition
          (or, if repaid by the Parent prior to the Effective Date, to reimburse
          the Parent for such repayment), (b) loans made to ChaseTel prior to
          consummation of the ChaseTel Acquisition that constitute Permitted
          ChaseTel Financing under clause (c) of the definition of such term,
          (c) payments, not exceeding [*], in respect of the purchase price of
          equipment and services (excluding Eligible Agency Plan Payments)
          purchased by the Borrower and its Subsidiaries other than pursuant to
          the Purchase Agreement, provided that such equipment becomes
          Collateral under the Security Agreement upon the purchase thereof
          (free of any Liens other than the Lien of the Security Agreement) and
          (d) payments in respect of the purchase price of any FCC License that
          is acquired by a License Subsidiary and is to be used in the business
          of the Borrower and its Subsidiaries after the purchase thereof,
          provided that such FCC License is acquired by a License Subsidiary
          free of any Liens and is not purchased subject to any FCC Debt,
          Permitted License Acquisition Debt or other Indebtedness; provided
                                                                    --------
          that, unless otherwise agreed by Lucent, payments for equipment
          referred to in clause (c) above shall be "Permitted Third Party
          Payments" only if and to the extent that such payments are permitted
          to be financed with the proceeds of Loans hereunder in accordance with
          the applicable provisions of the Purchase Agreement.

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

                  "Plan" means any employee pension benefit plan (other than a
                   ----
          Multiemployer Plan) subject to the provisions of Title IV of ERISA or
          Section 412 of the Code or Section 302 of ERISA, and in respect of
          which the Borrower or any ERISA Affiliate is (or, if such plan were
          terminated, would under Section 4069 of ERISA be deemed to be) an
          "employer" as defined in Section 3(5) of ERISA.

                  "Pledge Agreements" means the Borrower Pledge Agreement and
                   -----------------
          the Parent Pledge Agreement.

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                      22
<PAGE>

               "POPS" means, with respect to any geographical area, the most
                ----
recent projection of the population of such geographic area as published in a
demographic data source based upon the most recent U.S. Census Bureau data, such
data source to be reasonably agreed upon by the Administrative Agent and the
Borrower.

               "Prepayment Event" means:
                ----------------

               (a)  any sale, transfer or other disposition (including pursuant
          to a sale and leaseback transaction) of any property or asset of the
          Borrower or any Subsidiary Loan Party, other than pursuant to clause
          (i), (ii), (iii) or (iv) of Section 6.04(b); or

               (b)  any casualty or other insured damage to, or any taking under
          power of eminent domain or by condemnation or similar proceeding of,
          any property or asset of the Borrower or any Subsidiary Loan Party,
          but only to the extent that the Net Proceeds therefrom have not been
          applied to repair, restore or replace such property or asset within
          180 days after such event.

               "Primary Subordinated Obligation" has the meaning assigned to
                -------------------------------
such term in the Subordination Agreement.

               "Prime Rate" means the rate of interest per annum published from
                ----------
time to time in the "Money Rates" column (or any successor column) of The Wall
Street Journal as the prime rate or, if such rate shall cease to be so published
or is not available for any reason, the rate of interest publicly announced from
time to time by any commercial bank based in New York City selected by the
Administrative Agent for the purpose of quoting such rate; provided that if at
                                                           --------
any time the Person serving as Administrative Agent is a commercial bank based
in New York City then the "Prime Rate" shall be the rate of interest per annum
publicly announced from time to time by such bank as its prime rate in effect at
its principal office in New York City. Each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being
effective.

               "Purchase Agreement" means the System Equipment Purchase
                ------------------
Agreement dated as of August 12, 1999, between the Borrower and Lucent.

               "Purchase Price" means amounts paid or payable to Lucent pursuant
                --------------
to invoices delivered by Lucent pursuant to the Purchase Agreement, excluding
any such amounts attributable to sales taxes; provided that amounts paid or
                                              --------
payable for purchases pursuant to the Agency Plan shall not constitute "Purchase
Price" payments.

               "Real Estate Subsidiary" has the meaning assigned to such term in
                ----------------------
Section 6.12.

               "Register" has the meaning set forth in Section 9.04.
                --------

               "Related Parties" means, with respect to any specified Person,
                ---------------
such Person's Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person's Affiliates.

               "Repayment" means, in respect of any Indebtedness, the direct or
                ---------
indirect repayment, prepayment, redemption, purchase, acquisition, defeasance,
retirement

                                      23
<PAGE>

or other satisfaction of the principal of such Indebtedness, in whole or in
part, whether optional or mandatory. "Repay" has a meaning correlative thereto.
                                      -----

               "Required Lenders" means, at any time, Lenders having outstanding
                ----------------
Loans and Commitments representing more than 50% of the sum of the total
outstanding Loans and Commitments at such time; provided that at any time that
                                                --------
Lucent Lenders have outstanding Loans and Commitments representing more than 50%
of the sum of all outstanding Loans and Commitments at such time, "Required
Lenders" means each of (i) the Lucent Lenders at such time and (ii) other
Lenders holding more than 50% of the outstanding Loans and Commitments
(excluding those held by Lucent Lenders) at such time.

               "Restatement Date" means October 27, 2000.
                ----------------

               "Restricted Payment" means (a) any dividend or other
                ------------------
distribution (whether in cash, securities or other property) with respect to any
Equity Interests in Holdings, the Borrower or any Subsidiary Loan Party, or any
payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancelation or termination of any Equity Interest in Holdings, the
Borrower or any Subsidiary Loan Party or any option, warrant or other right to
acquire any such Equity Interest in Holdings, the Borrower or any Subsidiary
Loan Party or (b) any Repayment in respect of any Primary Subordinated
Obligation or any payment of interest thereon.

               "S&P" means Standard & Poor's.
                ---

               "Secondary Subordinated Obligation" has the meaning assigned to
                ---------------------------------
such term in the Subordination Agreement.

               "Security Agreement" means the Security Agreement dated as of
                ------------------
November 24, 1999, among the Borrower, the Subsidiary Loan Parties and the
Collateral Agent, which when originally executed was substantially in the form
of Exhibit H.

               "Security Documents" means the Collateral Agency Agreement, the
                ------------------
Pledge Agreements, the Security Agreement, the Mortgages and each other security
agreement or other instrument or document executed and delivered pursuant to
Section 5.11 or 5.12 to secure any of the Obligations.

               "Statutory Reserve Rate" means a fraction (expressed as a
                ----------------------
decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentages
(including any marginal, special, emergency or supplemental reserves) expressed
as a decimal established by the Board to which any commercial banks subject to
regulation by the Board are subject with respect to the Adjusted LIBO Rate, for
eurocurrency funding (currently referred to as "Eurocurrency Liabilities" in
Regulation D of the Board). Such reserve percentages shall include those imposed
pursuant to such Regulation D. LIBOR Loans shall be deemed to constitute
eurocurrency funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may be available
from time to time to any Lender under such Regulation D or any comparable
regulation. The Statutory Reserve Rate shall be adjusted automatically on and as
of the effective date of any change in any reserve percentage.

                                      24
<PAGE>

               "Subordination Agreement" means the Subordination Agreement dated
                -----------------------
as of November 24, 1999, among the Loan Parties and the Collateral Agent, which
when originally executed was substantially in the form of Exhibit I.

               "Subscribers" means customers that are purchasing wireless
                -----------
telecommunications service from the Borrower or any of its operating
Subsidiaries; provided that during the period from the Effective Date up to and
              --------
including the earlier of (a) the consummation of the ChaseTel Acquisition in
accordance with Section 6.04 and (b) the date that is one year after the
Effective Date, "Subscribers" shall also include customers of ChaseTel that are
                 -----------
receiving wireless telecommunications service pursuant to a service contract so
long as the operation of such wireless telecommunications service is being
managed by the Borrower and its Subsidiaries pursuant to a management contract
with ChaseTel.

               "subsidiary" means, with respect to any Person (the "parent") at
                ----------                                          ------
any date, any corporation, limited liability company, partnership, association
or other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership, association or other
entity (a) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are,
as of such date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent or
by the parent and one or more subsidiaries of the parent.

               "Subsidiary" means any subsidiary of the Borrower.
                ----------

               "Subsidiary Loan Parties" means the Subsidiaries and the License
                -----------------------
Subsidiaries.

               "Taxes" means any and all present or future taxes, levies,
                -----
imposts, duties, deductions, charges or withholdings imposed by any Governmental
Authority.

               "Total Capitalization" means, as of any date, the sum (without
                --------------------
duplication) of (a) Total Indebtedness as of such date, plus (b) Total
Contributed Capital as of such date, plus (c) if positive, consolidated retained
earnings of the Borrower and the Subsidiary Loan Parties as of such date.

               "Total Contributed Capital" means, as of any date, the sum
                -------------------------
(without duplication) of (a) the amount of consolidated paid-in equity capital
of the Borrower and the Subsidiary Loan Parties as of such date, plus (b) the
outstanding principal amount of Indebtedness consisting of Primary Subordinated
Obligations as of such date; provided that "Total Contributed Capital" shall not
                             --------
include any of the foregoing to the extent that the consideration received by
the Borrower and the Subsidiary Loan Parties therefore did not consist of either
(i) cash or (ii) assets useful in the business of the Borrower and the
Subsidiary Loan Parties that the Borrower and the Subsidiary Loan Parties would
have been permitted to acquire hereunder if cash had been received by the
Borrower as consideration therefor. Any assets referred to in clause (ii) shall
be valued at the lesser of the cost or fair market value of such assets at the
time received by the Borrower and the

                                      25
<PAGE>

Subsidiary Loan Parties, it being understood that costs incurred and assets
contributed to capital of the Borrower prior to the Effective Date and treated
as paid-in equity capital in accordance with GAAP shall be valued at the amount
reflected on the Borrower's balance sheet as paid-in equity capital in
accordance with GAAP.

               "Total Indebtedness" means, as of any date, the sum of (a) the
                ------------------
aggregate principal amount of Indebtedness of the Borrower and the Subsidiary
Loan Parties outstanding as of such date (excluding Indebtedness that
constitutes a Primary Subordinated Obligation), in the amount that would be
reflected on a balance sheet prepared as of such date on a consolidated basis in
accordance with GAAP, plus (b) the aggregate principal amount of Indebtedness of
the Borrower and the Subsidiary Loan Parties outstanding as of such date
(excluding Indebtedness that constitutes a Primary Subordinated Obligation) that
is not required to be reflected on a balance sheet in accordance with GAAP,
determined on a consolidated basis; provided that, for purposes of clause (b)
                                    --------
above, the term "Indebtedness" shall not include contingent obligations of the
Borrower or any Subsidiary as an account party in respect of any letter of
credit or letter of guaranty unless such letter of credit or letter of guaranty
supports an obligation that constitutes Indebtedness.

               "Transactions" means the execution, delivery and performance by
                ------------
the Loan Parties of the Loan Documents, the borrowing of Loans and the use of
the proceeds thereof.

               "Type", when used in reference to any Loan or Borrowing, refers
                ----
to whether the rate of interest on such Loan, or on the Loans comprising such
Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate
Base Rate.

               "Withdrawal Liability" means liability to a Multiemployer Plan as
                --------------------
a result of a complete or partial withdrawal from such Multiemployer Plan, as
such terms are defined in Part I of Subtitle E of Title IV of ERISA.

               SECTION 1.02. Classification of Loans and Borrowings. For
                             ---------------------------------------
purposes of this Agreement, Loans may be classified and referred to by Type
(e.g., a "LIBOR Loan"). Borrowings also may be classified and referred to by
 ---
Type (e.g., a "LIBOR Borrowing").
      ---

               SECTION 1.03. Terms Generally. The definitions of terms herein
                             ---------------
shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".
The word "will" shall be construed to have the same meaning and effect as the
word "shall". Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified (subject to any
restrictions on such amendments, supplements or modifications set forth herein
or in any other Loan Document), (b) any reference herein to any Person shall be
construed to include such Person's successors and assigns, (c) the words
"herein", "hereof" and "hereunder", and words of similar import, shall be
construed to refer to this Agreement in its entirety and not to any particular
provision hereof, (d) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and

                                      26
<PAGE>

Exhibits and Schedules to, this Agreement and (e) the words "asset" and
"property" shall be construed to have the same meaning and effect and to refer
to any and all tangible and intangible assets and properties, including cash,
securities, accounts, contract rights, licenses and intellectual property.

               SECTION 1.04. Accounting Terms; GAAP; Consolidation of License
                             ------------------------------------------------
Subsidiaries. (a) Except as otherwise expressly provided herein, all terms of an
-------------
accounting or financial nature shall be construed in accordance with GAAP, as in
effect from time to time; provided that, if the Borrower notifies the
                          --------
Administrative Agent that the Borrower requests an amendment to any provision
hereof to eliminate the effect of any change occurring after the date hereof in
GAAP or in the application thereof on the operation of such provision (or if the
Administrative Agent notifies the Borrower that the Required Lenders request an
amendment to any provision hereof for such purpose), regardless of whether any
such notice is given before or after such change in GAAP or in the application
thereof, then such provision shall be interpreted on the basis of GAAP as in
effect and applied immediately before such change shall have become effective
until such notice shall have been withdrawn or such provision amended in
accordance herewith.

               (b) Any determination required to be made under any Loan Document
with respect to the Borrower and the Subsidiary Loan Parties on a consolidated
basis shall be made as though the License Subsidiaries were consolidated
subsidiaries of the Borrower.

                                  ARTICLE II

                                   The Loans
                                   ---------

               SECTION 2.01. Commitments. (a) Subject to the terms and
                             ------------
conditions set forth herein, each Lender with an Available Commitment agrees to
make Loans to the Borrower at any time and from time to time during the
Availability Period in an aggregate principal amount not exceeding its remaining
Available Commitment at the time. Amounts repaid in respect of Loans may not be
reborrowed.

               (b)  If the Parent is required to prepay, and prepays, the
ChaseTel Loans pursuant to Section 7 of the Parent Agreement, then Lucent (in
its capacity as a Lender) agrees that, if the ChaseTel Acquisition is
consummated in accordance with this Agreement after the date of such prepayment
and before the date that is 18 months after the Effective Date, Lucent will,
subject to the same terms and conditions set forth herein with respect to other
Loans, make a Loan to the Borrower on the date of consummation of the ChaseTel
Acquisition in an aggregate principal amount equal to the aggregate principal
amount of ChaseTel Loans prepaid by the Parent. Lucent's agreement to make a
Loan pursuant to this paragraph (b) shall constitute a "Commitment" (commencing
upon the date on which the ChaseTel Loans are prepaid) for all purposes of this
Agreement, except that such Commitment (i) shall be disregarded for purposes of
funding other Loans, (ii) may be reduced or terminated by the Borrower without
reducing or terminating other Commitments, (iii) when utilized, shall not
require ratable funding of Loans in respect of other Commitments, (iv) must be
utilized with a Borrowing on a single date on or within 15 Business Days after
the date of consummation of the ChaseTel Acquisition and (v) shall terminate on
the earlier of the date that is five

                                      27
<PAGE>

Business Days after the date of consummation of the ChaseTel Acquisition and the
date that is 18 months after the Effective Date, if not utilized prior to such
date.

               SECTION 2.02. Loans and Borrowings. (a) Each Loan shall be made
                             ---------------------
as part of a Borrowing consisting of Loans of the same Type made by the Lenders
ratably in accordance with their respective Available Commitments; provided that
                                                                   --------
if a Commitment is assigned by Lucent (in its capacity as a Lender) after a
receipt of a Borrowing Request in order to permit the assignee to fund all or a
portion of the Loan that otherwise would have been funded by Lucent in
connection with such Borrowing Request (any such assigned Commitment, a
"Fronting Commitment"), Lucent's ratable share of such Borrowing shall equal (w)
Lucent's ratable share of such Borrowing calculated without giving effect to
such assignment minus (x) the amount of such Fronting Commitment, and the
assignee's ratable portion of such Borrowing shall equal the sum of (y) such
assignee's ratable share of such Borrowing calculated without giving effect to
any assignment under which such assignee was assigned a Fronting Commitment plus
(z) the amount of such Fronting Commitment. The failure of any Lender to make
any Loan required to be made by it shall not relieve any other Lender of its
obligations hereunder; provided that the Commitments of the Lenders are several
                       --------
and no Lender shall be responsible for any other Lender's failure to make Loans
as required. Nothing in this Section shall be construed to require any Lender to
make a Loan pursuant to a Commitment that is not an Available Commitment.

               (b)  Subject to Section 2.12, each Borrowing shall be comprised
entirely of LIBOR Loans or ABR Loans as the Borrower may request in accordance
herewith. Each Lender at its option may make any LIBOR Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of the
--------
Borrower to repay such Loan in accordance with the terms of this Agreement.

               (c)  At the commencement of each Interest Period for any LIBOR
Borrowing, such Borrowing shall be in an aggregate amount that is an integral
multiple of $1,000,000 and not less than $3,000,000. At the time that each ABR
Borrowing (other than an Interest Borrowing) is made, such Borrowing shall be in
an aggregate amount that is not less than $3,000,000; provided that an ABR
                                                      --------
Borrowing may be in an aggregate amount that is equal to the entire remaining
Commitments. Borrowings of more than one Type may be outstanding at the same
time; provided that there shall not at any time be more than a total of 12 LIBOR
      --------
Borrowings outstanding.

               (d)  Notwithstanding any other provision of this Agreement, the
Borrower shall not be entitled to request, or to elect to convert or continue,
any Borrowing as a LIBOR Borrowing if the Interest Period requested with respect
thereto would end after the Maturity Date.

                                      28
<PAGE>

               SECTION 2.03. Requests for Borrowings. (a) To request a
                             -----------------------
Borrowing, the Borrower shall notify the Administrative Agent of such request by
telephone not later than 11:00 a.m., New York City time, three Business Days
before the date of the proposed Borrowing; provided that, except for Interest
                                           --------
Borrowings, the Borrower may make only one request for a Borrowing in any single
calendar month (it being understood that all Borrowings made by the Borrower on
the same date shall be treated as a single request for a Borrowing for purposes
of this limitation). Each such telephonic Borrowing Request shall be irrevocable
and shall be confirmed promptly by hand delivery or telecopy to the
Administrative Agent of a written Borrowing Request in a form approved by the
Administrative Agent and signed by the Borrower. Each such telephonic and
written Borrowing Request shall specify the following information in compliance
with Section 2.02:

               (i)   the aggregate amount of such Borrowing and the use of
     proceeds therefrom (and each written Borrowing Request shall attach copies
     of the invoices to be paid with such proceeds, except to the extent such
     Borrowing is to be applied to pay fees and interest payable hereunder);

               (ii)  the date of such Borrowing, which shall be a Business Day;

               (iii) whether such Borrowing is to be a LIBOR Borrowing or an ABR
     Borrowing;

               (iv)  in the case of a LIBOR Borrowing, the initial Interest
     Period to be applicable thereto, which shall be a period contemplated by
     the definition of the term "Interest Period"; and

               (v)   if any proceeds of such Borrowing are to be applied to pay
     the purchase price of Permitted Third Party Payments or Eligible Agency
     Plan Payments, the location and number of the Borrower's account to which
     funds are to be disbursed, which shall comply with Section 2.04.

If no election as to the Type of Borrowing is specified, then the requested
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with
respect to any requested LIBOR Borrowing, then the Borrower shall be deemed to
have selected an Interest Period of one month's duration. Promptly following
receipt of a Borrowing Request in accordance with this Section, the
Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender's Loan to be made as part of the requested Borrowing.

               (b)  Notwithstanding anything to the contrary contained in this
Agreement, the Administrative Agent shall, at the request of Lucent so long as
Lucent Lenders are the only Lenders with Available Commitments hereunder, cause
Loans to be advanced by the Lenders for and on behalf of the Borrower whether or
not (i) any Borrowing Request is given in accordance with Section 2.03(a), (ii)
any of the conditions precedent set forth in Article IV hereof are satisfied,
(iii) any Default exists, or (iv) any other fact or circumstance exists, if
Lucent shall have given five Business Day's prior written notice to the
Administrative Agent and the Borrower of Lucent's desire to cause the Lenders to
make such Loans and all proceeds of such Loans are used to pay the Purchase
Price for Lucent goods and/or services which has not been disputed and which has
not been paid when due. All Loans advanced pursuant to this Section 2.03(b)
shall be initially

                                      29
<PAGE>

advanced as LIBOR Borrowings with a one month Interest Period (unless the
Borrower has requested in writing, at least three Business Days prior to such
advance, that any of such Loans have an Interest Period with a different
duration in accordance with the requirements of this Agreement) or, if the
maximum number of Interest Periods for LIBOR Borrowings is already then in
effect, as ABR Borrowings (but after such advancement, may be converted or
continued in accordance with Section 2.05 of this Agreement).

               SECTION 2.04. Funding of Borrowings. (a) Each Lender shall make
                             ----------------------
each Loan to be made by it hereunder on the proposed date thereof by wire
transfer of immediately available funds by 12:00 noon, New York City time, to
the account of the Administrative Agent most recently designated by it for such
purpose by notice to the Lenders. Such account shall be in New York, New York.
The Administrative Agent will make such Loans available to the Borrower (i) in
the case of amounts payable to Lucent, by promptly crediting the amounts so
received, in like funds, to an account of Lucent maintained with the
Administrative Agent and designated by Lucent for such purpose, (ii) in the case
of amounts payable to either Agent or any Lender, by promptly transmitting the
amounts so received to such Agent or Lender by wire transfer (or by crediting
the account of such Agent or Lender maintained with the Administrative Agent, if
applicable), in immediately available funds, or (iii) in the case of any other
amounts, by promptly transmitting the amounts so received to the Borrower by
wire transfer to an account of the Borrower in New York, New York (or crediting
the account of the Borrower maintained with the Administrative Agent in New
York, New York, if applicable), in immediately available funds, as designated by
the Borrower in the applicable Borrowing Request. Notwithstanding the foregoing,
(i) any Lender may make its Loan by crediting the amount thereof against any
amount payable to such Lender from the proceeds of such Borrowing and shall be
deemed to have made a Loan in the amount of such credit and (ii) the
Administrative Agent will make the Loans of the other Lenders available as
provided in the preceding sentence. So long as Lucent is the Administrative
Agent, any amounts to be made available or paid as provided above to an account
maintained with the Administrative Agent may be made available or paid to an
account maintained with a commercial bank designated by Lucent for the purpose.

               (b)  Unless the Administrative Agent shall have received notice
from a Lender prior to the proposed date of any Borrowing that such Lender will
not make available to the Administrative Agent such Lender's share of such
Borrowing, the Administrative Agent may assume that such Lender has made such
share available on such date in accordance with paragraph (a) of this Section
and may, in reliance upon such assumption, make available to the Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Borrowing available to the Administrative Agent, then the
applicable Lender and the Borrower severally agree to pay to the Administrative
Agent forthwith on demand such corresponding amount with interest thereon, for
each day from and including the date such amount is made available to the
Borrower to but excluding the date of payment to the Administrative Agent, at
(i) in the case of such Lender, the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking
industry rules on interbank compensation or (ii) in the case of the Borrower,
the interest rate applicable to ABR Loans. If such Lender pays such amount to
the Administrative Agent, then such amount shall constitute such Lender's Loan
included in such Borrowing.

                                      30
<PAGE>

               SECTION 2.05. Interest Elections. (a) Each Borrowing initially
                             ------------------
shall be of the Type specified in the applicable Borrowing Request and, in the
case of a LIBOR Borrowing, shall have an initial Interest Period as specified in
such Borrowing Request. Thereafter, the Borrower may elect to convert such
Borrowing to a different Type or to continue such Borrowing and, in the case of
a LIBOR Borrowing, may elect Interest Periods therefor, all as provided in this
Section. The Borrower may elect different options with respect to different
portions of the affected Borrowing, in which case each such portion shall be
allocated ratably among the Lenders holding the Loans comprising such Borrowing,
and the Loans comprising each such portion shall be considered a separate
Borrowing.

               (b) To make an election pursuant to this Section, the Borrower
shall notify the Administrative Agent of such election by telephone by the time
that a Borrowing Request would be required under Section 2.03 if the Borrower
were requesting a Borrowing of the Type resulting from such election to be made
on the effective date of such election. Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery or
telecopy to the Administrative Agent of a written Interest Election Request in a
form approved by the Administrative Agent and signed by the Borrower.

               (c) Each telephonic and written Interest Election Request shall
specify the following information in compliance with Section 2.02:

               (i)   the Borrowing to which such Interest Election Request
          applies and, if different options are being elected with respect to
          different portions thereof, the portions thereof to be allocated to
          each resulting Borrowing (in which case the information to be
          specified pursuant to clauses (iii) and (iv) below shall be specified
          for each resulting Borrowing);

               (ii)  the effective date of the election made pursuant to such
          Interest Election Request, which shall be a Business Day;

               (iii) whether the resulting Borrowing is to be a LIBOR Borrowing
          or an ABR Borrowing; and

               (iv)  if the resulting Borrowing is a LIBOR Borrowing, the
         Interest Period to be applicable thereto after giving effect to such
         election, which shall be a period contemplated by the definition of the
         term "Interest Period".

If any such Interest Election Request requests a LIBOR Borrowing but does not
specify an Interest Period, then the Borrower shall be deemed to have selected
an Interest Period of one month's duration.

               (d) Promptly following receipt of an Interest Election Request,
the Administrative Agent shall advise each Lender of the details thereof and of
such Lender's portion of each resulting Borrowing.

               (e) If the Borrower fails to deliver a timely Interest
Election Request with respect to a LIBOR Borrowing prior to the end of the
Interest Period applicable thereto, then, unless such Borrowing is repaid as
provided herein, at the end of such Interest Period such Borrowing shall be
converted to an ABR Borrowing. Notwithstanding any

                                      31
<PAGE>

contrary provision hereof, if an Event of Default has occurred and is continuing
and the Administrative Agent, at the request of the Required Lenders, so
notifies the Borrower, then, so long as an Event of Default is continuing (i) no
outstanding Borrowing may be converted to or continued as a LIBOR Borrowing and
(ii) unless repaid, each LIBOR Borrowing shall be converted to an ABR Borrowing
at the end of the Interest Period applicable thereto.

               SECTION 2.06. Termination and Reduction of Commitments. (a)
                             ----------------------------------------
Unless previously terminated, the Commitments shall terminate on the earlier of
(i) the Availability Termination Date and (ii) the date of termination of the
Purchase Agreement.

               (b) On the date of each Loan made by any Lender such Lender's
Commitment shall be reduced by an amount equal to such Loan.

               (c) In the event that a prepayment of Loans would be required
pursuant to paragraph (b), (c) or (d) of Section 2.09, all Commitments then in
effect shall be reduced ratably by an aggregate amount equal to the excess, if
any, of the amount of the required prepayment over the aggregate principal
amount of Loans outstanding immediately prior to giving effect to such
prepayment.

               (d) The Borrower may at any time terminate, or from time to time
reduce, the Commitments; provided that each reduction of the Commitments
                         --------
pursuant to this paragraph (d) shall be in an amount that is an integral
multiple of $1,000,000 and not less than $5,000,000.

               (e) The Borrower shall notify the Administrative Agent of any
election to terminate or reduce the Commitments under paragraph (d) of this
Section at least three Business Days prior to the effective date of such
termination or reduction, specifying such election and the effective date
thereof. Promptly following receipt of any such notice, the Administrative Agent
shall advise the Lenders of the contents thereof. Each notice delivered by the
Borrower pursuant to this Section shall be irrevocable. Any termination or
reduction of the Commitments shall be permanent. Each reduction of the
Commitments pursuant to paragraph (d) of this Section shall be made ratably
among the Lenders in accordance with their respective Commitments.

               SECTION 2.07. Repayment of Loans; Evidence of Debt. (a) The
                             ------------------------------------
Borrower hereby unconditionally promises to pay to the Administrative Agent for
the account of each Lender the then unpaid principal amount of each Loan of such
Lender as provided in Section 2.08.

               (b) Each Lender shall maintain in accordance with its usual
practice an account or accounts evidencing the indebtedness of the Borrower to
such Lender resulting from each Loan made by such Lender, including the amounts
of principal and interest payable and paid to such Lender from time to time
hereunder.

               (c) The Administrative Agent shall maintain accounts in which it
shall record (i) the amount of each Loan made hereunder, the Type thereof and
the Interest Period applicable thereto, (ii) the amount of any principal or
interest due and payable or to become due and payable from the Borrower to each
Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender's share thereof.

                                      32
<PAGE>

               (d) The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be prima facie evidence of the
                                              ----- -----
existence and amounts of the obligations recorded therein; provided that the
                                                           --------
failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligation of the Borrower
to repay the Loans in accordance with the terms of this Agreement.

               (e) Any Lender may request that Loans made by it be evidenced by
a promissory note. In such event, the Borrower shall prepare, execute and
deliver to such Lender a promissory note payable to the order of such Lender
(or, if requested by such Lender, to such Lender and its registered assigns) and
in a form approved by the Administrative Agent. Thereafter, the Loans evidenced
by such promissory note and interest thereon shall at all times (including after
assignment pursuant to Section 9.04) be represented by one or more promissory
notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered assigns).

               SECTION 2.08. Amortization of Loans. (a) Subject to adjustment
                             ---------------------
pursuant to paragraph (c) of this Section, the Borrower shall repay Borrowings
on each Payment Date set forth below in an aggregate amount equal to the
percentage set forth opposite such Payment Date multiplied by an amount equal to
the sum of all Loans made during the Availability Period (whether or not
previously repaid):

                 Payment Date                              Percentage
                 ------------                              ----------
         Each of first, second, third and
         fourth                                               2.50%

         Each of fifth, sixth, seventh and
         eighth                                               3.75%

         Each of ninth, tenth, eleventh and
         twelfth                                              5.00%

         Each of thirteenth, fourteenth,
         fifteenth and sixteenth                              6.25%

         Each of seventeenth, eighteenth,
         nineteenth and twentieth                             7.50%

               (b) To the extent not previously paid, all Loans shall be due and
payable on the Maturity Date.

               (c) Any prepayment of a Borrowing shall be applied to reduce the
subsequent scheduled repayments of the Borrowings to be made pursuant to this
Section in the inverse order of maturity thereof.

               (d) Prior to any repayment of any Borrowings hereunder, the
Borrower shall select the Borrowing or Borrowings to be repaid and shall notify
the Administrative Agent by telephone (confirmed by telecopy) of such selection
not later than 2:00 p.m., New York City time, three Business Days before the
scheduled date of such repayment;

                                      33
<PAGE>

provided that the Borrower shall select Borrowings to be repaid such that each
--------
Lender shall receive its pro rata share of such repayment as provided in Section
2.16. Each repayment of a Borrowing shall be applied ratably to the Loans
included in the repaid Borrowing. Repayments of Borrowings shall be accompanied
by the payment of accrued interest on the amount thereof.

               SECTION 2.09. Prepayment of Loans.
                             -------------------

               (a) The Borrower shall have the right at any time and from time
to time to prepay any Borrowing in whole or in part, subject to the requirements
of this Section.

               (b) In the event and on each occasion that any Net Proceeds are
received by or on behalf of the Borrower or any Subsidiary Loan Party in respect
of any Prepayment Event, the Borrower shall, within three Business Days after
such Net Proceeds are received, prepay Eligible Secured Debt (including
Borrowings), ratably in accordance with the outstanding principal amount
thereof, in an aggregate principal amount equal to such Net Proceeds; provided
                                                                      --------
that, in the case of any event described in clause (a) of the definition of the
term Prepayment Event, if the Borrower shall deliver to the Administrative Agent
a certificate of a Financial Officer to the effect that the Borrower and the
Subsidiaries intend to apply the Net Proceeds from such event (or a portion
thereof specified in such certificate), within 180 days after receipt of such
Net Proceeds, to acquire real property, equipment or other tangible assets to be
used in the business of the Borrower and the Subsidiaries, and certifying that
no Default has occurred and is continuing, then no prepayment shall be required
pursuant to this paragraph in respect of the Net Proceeds in respect of such
event (or the portion of such Net Proceeds specified in such certificate, if
applicable) except to the extent of any such Net Proceeds therefrom that have
not been so applied by the end of such 180-day period, at which time a
prepayment shall be required in an amount equal to such Net Proceeds that have
not been so applied.

               (c) Following the end of each fiscal year of the Borrower,
commencing with the fiscal year during which the Availability Termination Date
occurs, the Borrower shall prepay Eligible Secured Debt (including Borrowings),
ratably in accordance with the outstanding principal amount thereof, in an
aggregate principal amount equal to 50% of Excess Cash Flow for such fiscal
year. Each prepayment pursuant to this paragraph shall be made on or before the
date on which financial statements are delivered pursuant to Section 5.01 with
respect to the fiscal year for which Excess Cash Flow is being calculated (and
in any event within 90 days after the end of such fiscal year).

               (d) In the event and on each occasion that the Borrower or any
Subsidiary Loan Party Repays any Indebtedness (other than Eligible Secured Debt)
of the Borrower or any Subsidiary Loan Party then the Borrower shall, within
three Business Days after the date of such Repayment, prepay Eligible Secured
Debt (including Borrowings), ratably in accordance with the outstanding
principal amount thereof, in an aggregate amount equal to the product of (x) the
sum of the aggregate principal amount of the Eligible Secured Debt outstanding
at the time, multiplied by (y) a fraction, the numerator of which is the
aggregate principal amount of such Repayment, and the denominator of which is
the amount of Total Indebtedness immediately prior to such Repayment (excluding
Eligible Secured Debt and Indebtedness outstanding under revolving credit
facilities); provided that prepayments of Eligible Secured Debt shall not be
             --------
required pursuant to this paragraph in respect of (i) any Repayment of
Indebtedness to the extent

                                      34
<PAGE>

such Repayment is refinanced by incurring other Indebtedness that (A) has a
scheduled maturity date that is on or after the scheduled maturity date of the
Indebtedness being refinanced, (B) has a weighted average life to maturity that
is equal to or longer than the remaining weighted average life to maturity of
the Indebtedness being refinanced, determined immediately prior to giving effect
to such Repayment, (C) does not include any provisions that may require
mandatory Repayment thereof prior to scheduled maturity, other than scheduled
repayments taken into consideration in determining compliance with clause (B)
above and other provisions that are not materially more burdensome than any such
provisions included in the Indebtedness being refinanced, (D) is issued or
incurred by the same Person that issued or incurred the Indebtedness being
refinanced and is not Guaranteed or secured by any Lien unless the Indebtedness
being refinanced was Guaranteed or secured (in which case such Indebtedness
shall not be Guaranteed by any Person that did not Guarantee the Indebtedness
being refinanced and shall not be secured by a Lien on any asset that did not
secure the Indebtedness being refinanced), and (E) is subordinated to the
Obligations on terms no less favorable than the terms on which the Indebtedness
being refinanced was so subordinated, if such refinanced Indebtedness was so
subordinated (any such refinancing which satisfies such conditions being
referred to herein as a "Qualified Refinancing"), (ii) any Repayment of
Indebtedness outstanding under a revolving credit facility to the extent that
(A) the commitments of the lenders to make loans thereunder remain in effect
after giving effect to such Repayment or are replaced by commitments under a
replacement revolving credit facility and (B) such commitments are not reduced
within six months thereafter, (iii) any Repayment of secured Indebtedness in
connection with the sale of the assets securing such Indebtedness, or (iv) any
Repayment of Indebtedness at the scheduled final maturity thereof or in
accordance with regularly scheduled amortization requirements prior to maturity.

               (e) In the event and on each occasion that the Borrower or any
Subsidiary Loan Party Repays any Eligible Secured Debt (other than Loans
hereunder), then the Borrower shall, within three Business Days after the date
of such Repayment, prepay Borrowings in an aggregate principal amount equal to
the product of (x) the sum of the aggregate principal amount of Loans
outstanding at the time, multiplied by (y) a fraction, the numerator of which is
the aggregate principal amount of such Repayment, and the denominator of which
is the aggregate outstanding principal amount of the Eligible Secured Debt that
was the subject of such Repayment (immediately prior to such Repayment);
provided that prepayments of Borrowings shall not be required pursuant to this
paragraph in respect of (i) any Repayment of Eligible Secured Debt at the
scheduled final maturity thereof or in accordance with regularly scheduled
amortization requirements prior to maturity, (ii) any Repayment of other
Eligible Secured Debt that constitutes a mandatory prepayment thereof in
accordance with paragraph (b), (c) or (d) of this Section, (iii) a Qualified
Refinancing, or (iv) a mandatory pro rata prepayment of any Eligible Secured
Debt (other than the Loans hereunder) as a result of corresponding provisions
thereof requiring a pro rata payment thereof in the event of a prepayment of the
Loans hereunder.

               (f) Prior to any optional or mandatory prepayment of Borrowings
hereunder, the Borrower shall select the Borrowing or Borrowings to be prepaid
and shall specify such selection in the notice of such prepayment pursuant to
paragraph (g) of this Section; provided that the Borrower shall select
                               --------
Borrowings to be prepaid such that each Lender shall receive its pro rata share
of such prepayment as provided in Section 2.16.

                                      35
<PAGE>

               (g) The Borrower shall notify the Administrative Agent by
telephone (confirmed by telecopy) of any prepayment hereunder not later than
11:00 a.m., New York City time, three Business Days before the date of
prepayment. Each such notice shall be irrevocable and shall specify the
prepayment date, the principal amount of each Borrowing or portion thereof to be
prepaid and, in the case of a mandatory prepayment, a reasonably detailed
calculation of the amount of such prepayment. Promptly following receipt of any
such notice, the Administrative Agent shall advise the Lenders of the contents
thereof. Each partial prepayment of any Borrowing shall be in an amount that
would be permitted in the case of an advance of a Borrowing of the same Type as
provided in Section 2.02, except as necessary to apply fully the required amount
of a mandatory prepayment. Each prepayment of a Borrowing shall be applied
ratably to the Loans included in the prepaid Borrowing. Prepayments of
Borrowings shall be accompanied by the payment of accrued interest on the amount
prepaid.

               SECTION 2.10. Fees. (a) The Borrower agrees to pay to the
                             ----
Administrative Agent for the account of each Lender a commitment fee, which
shall accrue at the Commitment Fee Rate on the daily amount of the Available
Commitment of such Lender during the period from and including the Effective
Date to but excluding the date on which the Commitments terminate. Accrued
commitment fees shall be payable in arrears on the last day of March, June,
September and December of each year and on the date on which the Commitments
terminate, commencing on the first such date to occur after the Effective Date.
All commitment fees shall be computed on the basis of a year of 360 days and
shall be payable for the actual number of days elapsed (including the first day
but excluding the last day).

               (b) The Borrower agrees to pay to Lucent, for its own account,
fees in the amounts and at the times separately agreed.

               (c) The Borrower agrees to pay to the Administrative Agent and
the Collateral Agent (if other than Lucent), for its own account, fees in the
amounts and at the times separately agreed.

               (d) All fees payable hereunder shall be paid on the dates due, in
immediately available funds, (i) to the applicable Agent, (ii) to Lucent, in the
case of fees payable to it, or (iii) to the Administrative Agent, in the case of
commitment fees, for distribution to the Lenders entitled thereto. Fees paid
shall not be refundable under any circumstances.

               SECTION 2.11. Interest. (a) The Loans comprising each ABR
                             --------
Borrowing shall bear interest at the Alternate Base Rate plus the Applicable
Margin.

               (b) The Loans comprising each LIBOR Borrowing shall bear interest
at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing
plus the Applicable Margin.

               (c) Notwithstanding the foregoing, if any principal of or
interest on any Loan or any fee or other amount payable by the Borrower
hereunder is not paid when due, whether at stated maturity, upon acceleration or
otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to 2% plus the rate applicable to ABR Loans
as provided in paragraph (a) of this Section.

                                      36
<PAGE>

               (d) All accrued interest on each Loan shall be payable in
arrears on each Interest Payment Date for such Loan; provided that (i) interest
                                                     --------
accrued pursuant to paragraph (c) of this Section shall be payable on demand,
(ii) in the event of any repayment or prepayment of any Loan, accrued interest
on the principal amount of such Loan repaid or prepaid shall be payable on the
date of such repayment or prepayment, and (iii) in the event of any conversion
of any Loan prior to the end of the current Interest Period therefor, accrued
interest on such Loan shall be payable on the effective date of such conversion.

               (e) All interest hereunder shall be computed on the basis of a
year of 360 days, except that interest computed by reference to the Alternate
Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall
be computed on the basis of a year of 365 days (or 366 days in a leap year), and
in each case shall be payable for the actual number of days elapsed (including
the first day but excluding the last day). The applicable Alternate Base Rate or
Adjusted LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

               SECTION 2.12. Alternate Rate of Interest. If prior to the
                             ---------------------------
commencement of any Interest Period for a LIBOR Borrowing:

               (a) the Administrative Agent determines (which determination
          shall be conclusive absent manifest error) that adequate and
          reasonable means do not exist for ascertaining the Adjusted LIBO Rate
          for such Interest Period; or

               (b) the Administrative Agent is advised by a majority in interest
          of the Lenders participating in such Borrowing that the Adjusted LIBO
          Rate for such Interest Period will not adequately and fairly reflect
          the cost to such Lenders of making or maintaining their Loans included
          in such Borrowing for such Interest Period;

then the Administrative Agent shall give notice thereof to the Borrower and the
Lenders by telephone or telecopy as promptly as practicable thereafter and,
until the Administrative Agent notifies the Borrower and the Lenders that the
circumstances giving rise to such notice no longer exist, (i) any Interest
Election Request that requests the conversion of any Borrowing to, or
continuation of any Borrowing as, a LIBOR Borrowing shall be ineffective and
(ii) if any Borrowing Request requests a LIBOR Borrowing, such Borrowing shall
be made as an ABR Borrowing.

               SECTION 2.13. Increased Costs. (a) If any Change in Law shall:
                             ---------------

                    (i)  impose, modify or deem applicable any reserve, special
          deposit or similar requirement against assets of, deposits with or for
          the account of, or credit extended by, any Lender (except any such
          reserve requirement reflected in the Adjusted LIBO Rate); or

                    (ii) impose on any Lender or the London interbank market any
          other condition affecting this Agreement or LIBOR Loans made by such
          Lender;

and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any LIBOR Loan (or of maintaining its obligation
to make any such Loan) or to reduce the amount of any sum received or receivable
by such Lender

                                      37
<PAGE>

hereunder (whether of principal, interest or otherwise), then the Borrower will
pay to such Lender such additional amount or amounts as will compensate such
Lender for such additional costs incurred or reduction suffered.

               (b) If any Lender determines that any Change in Law regarding
capital requirements has or would have the effect of reducing the rate of return
on such Lender's capital or on the capital of such Lender's holding company, if
any, as a consequence of this Agreement or the Loans made by such Lender to a
level below that which such Lender or such Lender's holding company could have
achieved but for such Change in Law (taking into consideration such Lender's
policies and the policies of such Lender's holding company with respect to
capital adequacy), then from time to time the Borrower will pay to such Lender
such additional amount or amounts as will compensate such Lender or such
Lender's holding company for any such reduction suffered.

               (c) A certificate of a Lender setting forth the amount or amounts
necessary to compensate such Lender or its holding company, as the case may be,
as specified in paragraph (a) or (b) of this Section shall be delivered to the
Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such certificate within 10 days after
receipt thereof.

               (d) Failure or delay on the part of any Lender to demand
compensation pursuant to this Section shall not constitute a waiver of such
Lender's right to demand such compensation; provided that the Borrower shall not
                                            --------
be required to compensate a Lender pursuant to this Section for any increased
costs or reductions incurred more than 180 days prior to the date that such
Lender notifies the Borrower of the Change in Law giving rise to such increased
costs or reductions and of such Lender's intention to claim compensation
therefor; provided further that, if the Change in Law giving rise to such
          -------- -------
increased costs or reductions is retroactive, then the 180-day period referred
to above shall be extended to include the period of retroactive effect thereof.

               SECTION 2.14. Break Funding Payments. In the event of (a) the
                             ----------------------
payment of any principal of any LIBOR Loan other than on the last day of an
Interest Period applicable thereto (including as a result of an Event of
Default), (b) the conversion of any LIBOR Loan other than on the last day of the
Interest Period applicable thereto, (c) the failure to borrow, convert, continue
or prepay any Loan on the date specified in any notice delivered pursuant
hereto, or (d) the assignment of any LIBOR Loan other than on the last day of
the Interest Period applicable thereto as a result of a request by the Borrower
pursuant to Section 2.17, then, in any such event, the Borrower shall compensate
each Lender for the loss, cost and expense attributable to such event. In the
case of a LIBOR Loan, such loss, cost or expense to any Lender shall be deemed
to include an amount determined by such Lender to be the excess, if any, of (i)
the amount of interest which would have accrued on the principal amount of such
Loan had such event not occurred, at the Adjusted LIBO Rate that would have been
applicable to such Loan, for the period from the date of such event to the last
day of the then current Interest Period therefor (or, in the case of a failure
to borrow, convert or continue, for the period that would have been the Interest
Period for such Loan), over (ii) the amount of interest which would accrue on
such principal amount for such period at the interest rate which such Lender
would bid were it to bid, at the commencement of such period, for dollar
deposits of a comparable amount and period from other banks in the eurodollar
market. A certificate of any Lender setting forth any amount or amounts that
such Lender is entitled to receive pursuant to this Section shall be delivered
to the Borrower and shall be

                                      38
<PAGE>

conclusive absent manifest error. The Borrower shall pay such Lender the amount
shown as due on any such certificate within 10 days after receipt thereof.

               SECTION 2.15. Taxes. (a) Any and all payments by or on account
                             -----
of any obligation of the Borrower hereunder or under any other Loan Document
shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; provided that if the Borrower shall be required to deduct any
                --------
Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under this Section)
the Administrative Agent or Lender receives an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrower shall make
such deductions and (iii) the Borrower shall pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable law.

               (b) In addition, the Borrower shall pay any Other Taxes to the
relevant Governmental Authority in accordance with applicable law.

               (c) The Borrower shall indemnify the Administrative Agent and
each Lender, within 10 days after written demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes paid by the Administrative Agent or such
Lender on or with respect to any payment by or on account of any obligation of
the Borrower hereunder or under any other Loan Document (including Indemnified
Taxes or Other Taxes imposed or asserted on or attributable to amounts payable
under this Section) and any penalties, interest and reasonable expenses arising
therefrom or with respect thereto, whether or not such Indemnified Taxes or
Other Taxes were correctly or legally imposed or asserted by the relevant
Governmental Authority. A certificate as to the amount of such payment or
liability delivered to the Borrower by a Lender, or by the Administrative Agent
on its own behalf or on behalf of a Lender, shall be conclusive absent manifest
error.

               (d) As soon as practicable after any payment of Indemnified
Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower
shall deliver to the Administrative Agent the original or a certified copy of a
receipt issued by such Governmental Authority evidencing such payment, a copy of
the return reporting such payment or other evidence of such payment reasonably
satisfactory to the Administrative Agent.

               (e) Any Foreign Lender that is entitled to an exemption from
or reduction of withholding tax under the law of the United States of America,
or any treaty to which the United States of America is a party, with respect to
payments under this Agreement shall deliver to the Borrower (with a copy to the
Administrative Agent), at the time or times prescribed by applicable law, such
properly completed and executed documentation prescribed by applicable law or
reasonably requested by the Borrower as will permit such payments to be made
without withholding or at a reduced rate; provided that such Foreign Lender has
                                          --------
received written notice from the Borrower advising it of the availability of
such exemption or reduction and supplying all applicable documentation.

               SECTION 2.16. Payments Generally; Pro Rata Treatment; Sharing
                             -----------------------------------------------
of Setoffs. (a) The Borrower shall make each payment required to be made by it
----------
hereunder or under any other Loan Document (whether of principal, interest or
fees, or of amounts payable under Section 2.13, 2.14 or 2.15, or otherwise)
prior to 12:00 (noon), New York

                                      39
<PAGE>

City time, on the date when due, in immediately available funds, without setoff
or counterclaim. Any amounts received after such time on any date may, in the
discretion of the Administrative Agent, be deemed to have been received on the
next succeeding Business Day for purposes of calculating interest thereon. All
such payments shall be made to the Administrative Agent at The Chase Manhattan
Bank, New York, New York, ABA no. 021000021, account no. 9101449099, phone no.
(212) 552-2222 (or such other account in New York, New York as the
Administrative Agent shall from time to time specify by notice), except that
payments pursuant to Sections 2.10(b), 2.10(c), 2.13, 2.14, 2.15 and 9.03 shall
be made directly to the Persons entitled thereto and payments pursuant to other
Loan Documents shall be made to the Persons specified therein. The
Administrative Agent shall distribute any such payments received by it for the
account of any other Person to the appropriate recipient promptly following
receipt thereof. If any payment under any Loan Document shall be due on a day
that is not a Business Day, the date for payment shall be extended to the next
succeeding Business Day, and, in the case of any payment accruing interest,
interest thereon shall be payable for the period of such extension. All payments
under each Loan Document shall be made in dollars.

               (b) Each repayment or prepayment of principal of the Loans
hereunder, or selection of Borrowings for repayment or prepayment, shall be made
such that the benefit of such repayment or prepayment is shared by the Lenders
ratably in accordance with the aggregate principal amount of their respective
Loans then outstanding.

               (c) If at any time insufficient funds are received by and
available to the Administrative Agent to pay fully all amounts of principal,
interest and fees then due hereunder, such funds shall be applied (i) first,
towards payment of interest and fees then due hereunder, ratably among the
parties entitled thereto in accordance with the amounts of interest and fees
then due to such parties, and (ii) second, towards payment of principal then due
hereunder, ratably among the parties entitled thereto in accordance with the
amounts of principal then due to such parties.

               (d) If any Lender shall, by exercising any right of set-off or
counterclaim or otherwise, obtain payment in respect of any principal of or
interest on any of its Loans resulting in such Lender receiving payment of a
greater proportion of the aggregate amount of its Loans and accrued interest
thereon than the proportion received by any other Lender, then the Lender
receiving such greater proportion shall purchase (for cash at face value)
participations in the Loans of other Lenders to the extent necessary so that the
benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Loans; provided that (i) if any such participations are
                        --------
purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price
restored to the extent of such recovery, without interest, and (ii) the
provisions of this paragraph shall not be construed to apply to any payment made
by the Borrower pursuant to and in accordance with the express terms of this
Agreement or any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Loans to any assignee or
participant, other than to the Borrower or any Subsidiary or Affiliate thereof
(as to which the provisions of this paragraph shall apply). The Borrower
consents to the foregoing and agrees, to the extent it may effectively do so
under applicable law, that any Lender acquiring a participation pursuant to the
foregoing arrangements may exercise against the Borrower rights of setoff and
counterclaim with respect to such participation as fully as if such Lender were
a direct creditor of the Borrower in the amount of such participation.

                                      40
<PAGE>

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

               (f) Without limiting the generality of paragraph (a) above,
the Borrower's obligations to make each payment required to be made by it
hereunder or under any other Loan Document (whether of principal, interest, fees
or otherwise) shall be absolute and unconditional and shall not be subject to
any delay, reduction, setoff, counterclaim, defense or recoupment for any
reason, including any dispute with, breach of representation or warranty by or
claim against any supplier, manufacturer, installer, vendor or distributer,
including Lucent.

               SECTION 2.17. Mitigation Obligations; Replacement of Lenders.
                             ----------------------------------------------
(a) If any Lender requests compensation under Section 2.13, or if the Borrower
is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 2.15, then such
Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, if, in the judgment
of such Lender, such designation or assignment (i) would eliminate or reduce
amounts payable pursuant to Section 2.13 or 2.15, as the case may be, in the
future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender. The Borrower
hereby agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

                  (b) If any Lender requests compensation under Section 2.13, or
if the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section 2.15,
then the Borrower may, at its sole expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to use all reasonable
efforts to assign and delegate, without recourse (in accordance with and subject
to the restrictions contained in Section 9.04), all its interests, rights and
obligations under this Agreement to an assignee that shall assume such
obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Borrower shall have received the prior
             --------
written consent of the Administrative Agent, which consent shall not
unreasonably be withheld, (ii) such Lender shall have received payment of an
amount equal to the outstanding principal of its Loans, accrued interest
thereon, accrued fees and all other amounts payable to it hereunder, from the
assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts) and (iii) such
assignment will result in a material reduction in such compensation or payments.
A Lender shall not be required to make any such assignment and delegation if,
prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the

                                      41
<PAGE>

Borrower to require such assignment and delegation cease to apply.

                                  ARTICLE III

                        Representations and Warranties
                        ------------------------------

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

               SECTION 3.01. Organization; Powers. Each of the Loan Parties is
                             --------------------
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, has all requisite power and authority to carry
on its business as now conducted and, except where the failure to do so,
individually or in the aggregate, could not reasonably be expected to result in
a Material Adverse Effect, is qualified to do business in, and is in good
standing in, every jurisdiction where such qualification is required.

               SECTION 3.02. Authorization; Enforceability. The Transactions
                             -----------------------------
entered into or to be entered into by each Loan Party are within such Loan
Party's powers and have been duly authorized by all necessary corporate and, if
required, stockholder action. This Agreement has been duly executed and
delivered by Holdings and the Borrower and constitutes, and each other Loan
Document to which any Loan Party is or is to be a party constitutes (or, when
executed and delivered by it, will constitute) a legal, valid and binding
obligation of Holdings and the Borrower or such Loan Party (as the case may be),
enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors' rights
generally and subject to general principles of equity, regardless of whether
considered in a proceeding in equity or at law.

               SECTION 3.03. Governmental Approvals; No Conflicts. The
                             ------------------------------------
Transactions (a) do not require any consent or approval of, registration or
filing with, or any other action by, any Governmental Authority, except such as
have been obtained or made and are in full force and effect and except filings
necessary to perfect Liens created under the Security Documents, (b) will not
violate any applicable law or regulation or the charter, by-laws or other
organizational documents of any Loan Party or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture,
agreement or other instrument binding upon any Loan Party or its assets, or give
rise to a right thereunder to require any payment to be made by any Loan Party,
except for, until the consents and waivers required by Section 4.02(j) are
received, the Credit Agreement dated as of September 23, 1998 among the Parent,
QUALCOMM Incorporated and ABN Amro Bank N.V., as Administrative Agent, and (d)
will not result in the creation or imposition of any Lien on any asset of any
Loan Party, except Liens created under the Security Documents.

               SECTION 3.04. Financial Condition; No Material Adverse Change.
                             -----------------------------------------------
(a) The Parent has heretofore furnished to the Lenders its consolidated balance
sheet and statements of income, stockholders equity and cash flows (i) as of and
for the fiscal year ended August 31, 1999, reported on by PricewaterhouseCoopers
LLP, independent public accountants, and (ii) as of and for the fiscal quarter
and the portion of the fiscal year ended February 29, 2000, certified by its
chief financial officer. Such financial

                                      42
<PAGE>

statements present fairly, in all material respects, the financial position and
results of operations and cash flows of the Parent and its consolidated
subsidiaries as of such dates and for such periods in accordance with GAAP,
subject to year-end audit adjustments and the absence of footnotes in the case
of the statements referred to in clause (ii) above.

               (b) The Borrower has heretofore furnished to the Lenders its
consolidated balance sheet and statement of operations, stockholder's equity and
cash flows as of and for the fiscal year ended August 31, 1999, and as of and
for the portion of the six month period ended June 30, 2000, certified by its
chief financial officer. Such financial statements present fairly, in all
material respects, the financial position and results of operations and cash
flows of the Borrower and its consolidated subsidiaries as of such dates and for
such periods in accordance with GAAP.

               (c) Since June 30, 2000, there has been no material adverse
change in the business, assets, operations, prospects or condition (financial or
otherwise) of the Borrower and the Subsidiary Loan Parties, taken as a whole.

               SECTION 3.05. Properties and Licenses. (a) Each of the Borrower
                             -----------------------
and the Subsidiary Loan Parties has good title to, or valid leasehold interests
in, all the real and personal property material to its business (other than
licenses, which are addressed in paragraph (d) of this Section), except for
minor defects in title that do not interfere with its ability to conduct its
business as currently conducted or proposed to be conducted.

               (b) Each of the Borrower and the Subsidiary Loan Parties owns, or
is licensed to use, all trademarks, tradenames, copyrights, patents and other
intellectual property material to its business, and the use thereof by the
Borrower and the Subsidiary Loan Parties does not infringe upon the rights of
any other Person, except for any such infringements that, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse
Effect.

               (c) Schedule 3.05A sets forth the address of each real property
that is owned or leased by the Borrower or any of its Subsidiaries as of
September 20, 1999, after giving effect to the Transactions. As of the Effective
Date, neither Holdings, the Borrower nor any of its Subsidiaries has received
notice of, or has knowledge of, any pending or contemplated condemnation
proceeding affecting any Mortgaged Property or any sale or disposition thereof
in lieu of condemnation. Neither any Mortgaged Property nor any interest therein
is subject to any right of first refusal, option or other contractual right to
purchase such Mortgaged Property or interest therein.

               (d) Schedule 3.05B sets forth all FCC Licenses existing as of
September 20, 1999, (and the respective holders of such FCC Licenses) and all
other licenses and permits in effect as of September 20, 1999, that are material
to the business of the Borrower and the Subsidiary Loan Parties. Each of the FCC
Licenses, and each other license or permit that is material to the business of
the Borrower and the Subsidiary Loan Parties, is valid and in full force and
effect, and the Borrower and the Subsidiary Loan Parties are in compliance with
the terms and conditions thereof except where the failure to so comply could
not, individually or in the aggregate, reasonably be expected to result in a
Material Adverse Effect. The Borrower has the right to utilize all FCC Licenses
held by the License Subsidiaries.

               SECTION 3.06. Litigation and Environmental Matters. (a) There are
                             ------------------------------------
no

                                      43
<PAGE>

actions, suits or proceedings by or before any arbitrator or Governmental
Authority pending against or, to the knowledge of Holdings or the Borrower,
threatened against or affecting any Loan Party (i) as to which there is a
reasonable possibility of an adverse determination and that, if adversely
determined, could reasonably be expected, individually or in the aggregate, to
result in a Material Adverse Effect (other than the Disclosed Matters) or (ii)
that involve any of the Loan Documents or the Transactions.

               (b) Except for the Disclosed Matters and except with respect to
any other matters that, individually or in the aggregate, could not reasonably
be expected to result in a Material Adverse Effect, none of the Loan Parties (i)
has failed to comply with any Environmental Law or to obtain, maintain or comply
with any permit, license or other approval required under any Environmental Law,
(ii) has become subject to any Environmental Liability, (iii) has received
notice of any claim with respect to any Environmental Liability or (iv) knows of
any basis for any Environmental Liability.

               (c) Since the date of this Agreement, there has been no change in
the status of the Disclosed Matters that, individually or in the aggregate, has
resulted in, or materially increased the likelihood of, a Material Adverse
Effect.

               SECTION 3.07. Compliance with Laws and Agreements. Each of the
                             -----------------------------------
Loan Parties is in compliance with all laws, regulations and orders of any
Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property (including all
agreements, instruments or documents governing any Eligible Secured Debt other
than the Indebtedness of the Borrower in respect of the Loans (collectively, the
"Other Loan Documents")), except where the failure to do so, individually or in
 --------------------
the aggregate, could not reasonably be expected to result in a Material Adverse
Effect, except for, until the consents and waivers required by Section 4.02(j)
are received, the Credit Agreement dated as of September 23, 1998 among the
Parent, QUALCOMM Incorporated and ABN Amro Bank N.V., as Administrative Agent.
No Default has occurred and is continuing.

               SECTION 3.08. Investment and Holding Company Status. None of the
                             -------------------------------------
Loan Parties is (a) an "investment company" as defined in, or subject to
regulation under, the Investment Company Act of 1940 or (b) a "holding company"
as defined in, or subject to regulation under, the Public Utility Holding
Company Act of 1935.

               SECTION 3.09. Taxes. Each of the Loan Parties has timely filed or
                             -----
caused to be filed all Tax returns and reports required to have been filed and
has paid or caused to be paid all Taxes required to have been paid by it, except
(a) Taxes that are being contested in good faith by appropriate proceedings and
for which the applicable Loan Party has set aside on its books adequate reserves
or (b) the filing of state or local Tax returns and reports, or the payment of
state or local Taxes, to the extent that the failure to do so, individually or
in the aggregate, could not reasonably be expected to result in a Material
Adverse Effect.

               SECTION 3.10. ERISA. No ERISA Event has occurred or is reasonably
                             -----
expected to occur that, when taken together with all other such ERISA Events for
which liability is reasonably expected to occur, could reasonably be expected to
result in a Material Adverse Effect. The present value of all accumulated
benefit obligations under each Plan (based on the assumptions used for purposes
of Statement of Financial Accounting Standards No. 87) did not, as of the date
of the most recent financial

                                      44
<PAGE>

statements reflecting such amounts, exceed by more than $1,000,000 the fair
market value of the assets of such Plan, and the present value of all
accumulated benefit obligations of all underfunded Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards No.
87) did not, as of the date of the most recent financial statements reflecting
such amounts, exceed by more than $5,000,000 the fair market value of the assets
of all such underfunded Plans.

               SECTION 3.11. Disclosure. Holdings and the Borrower have
                             ----------
disclosed to the Lenders all agreements, instruments and corporate or other
restrictions to which any of the Loan Parties is subject, and all other matters
known to any of them, that, individually or in the aggregate, could reasonably
be expected to result in a Material Adverse Effect. None of the reports,
financial statements, certificates or other information furnished by or on
behalf of any Loan Party to the Administrative Agent or any Lender in connection
with the negotiation of this Agreement or any other Loan Document or delivered
hereunder or thereunder (as modified or supplemented by other information so
furnished) contains any material misstatement of fact or omits to state any
material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided that, with
                                                          --------
respect to projected financial information, Holdings and the Borrower represent
only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time.

               SECTION 3.12. Subsidiaries. Holdings does not have any
                             ------------
subsidiaries other than the Borrower and the Borrower's Subsidiaries. Schedule
3.12 sets forth as of the Effective Date (a) the name of, and the ownership
interest of the Borrower in, each Subsidiary of the Borrower and (b) the name
of, and the ownership interest of the Parent in, each License Subsidiary.

               SECTION 3.13. Insurance. Schedule 3.13 sets forth a description
                             ---------
of all insurance maintained by or on behalf of the Borrower and the Subsidiary
Loan Parties as of the Effective Date. As of the Effective Date, all premiums
then due and payable in respect of such insurance have been paid.

               SECTION 3.14. Labor Matters. As of the Effective Date, there are
                             -------------
no strikes, lockouts or slowdowns against any Loan Party pending or, to the
knowledge of Holdings or the Borrower, threatened. The hours worked by and
payments made to employees of the Loan Parties have not been in violation of the
Fair Labor Standards Act or any other applicable Federal, state, local or
foreign law dealing with such matters. All payments due from any Loan Party, or
for which any claim may be made against any Loan Party, on account of wages and
employee health and welfare insurance and other benefits, have been paid or
accrued as a liability on the books of the applicable Loan Party. The
consummation of the Transactions will not give rise to any right of termination
or right of renegotiation on the part of any union under any collective
bargaining agreement to which any Loan Party is bound.

               SECTION 3.15. Purchase Agreement. The Purchase Agreement is in
                             ------------------
full force and effect. The Borrower is in compliance in all material respects
with the terms and conditions of the Purchase Agreement.

               SECTION 3.16. Year 2000. Any reprogramming required to permit the
                             ---------
proper functioning, in and following the year 2000, of (a) the computer systems
of the Borrower and its Subsidiaries (including any computer systems of the
Parent that are

                                      45
<PAGE>

used in connection with the business of the Borrower and its Subsidiaries) and
(b) equipment containing embedded microchips (including systems and equipment
supplied by others or with which the Borrower's systems interface) and the
testing of all such systems and equipment, as so reprogrammed, have been
completed. The cost to the Borrower and its Subsidiaries of such reprogramming
and testing and of the reasonably foreseeable consequences of year 2000 to the
Borrower and its Subsidiaries (including reprogramming errors and the failure of
others' systems or equipment) will not result in a Default or a Material Adverse
Effect.

               Section 3.17. Eligible Secured Debt. The Loans made and
                             ---------------------
contemplated to be made in accordance with this Agreement constitute a part of
the "Obligations", as such term is defined in the Collateral Agency Agreement,
     -----------
and are permitted to be secured by all Collateral in accordance with the
Collateral Agency Agreement.

                                  ARTICLE IV

                                  Conditions
                                  ----------

               SECTION 4.01. Effective Date. The obligations of the Lenders to
                             --------------
make Loans hereunder shall not become effective until the date on which each of
the following conditions is satisfied (or waived in accordance with Section
9.02):

               (a) The Administrative Agent (or its counsel) shall have received
          from each party hereto either (i) a counterpart of this Agreement
          signed on behalf of such party or (ii) written evidence satisfactory
          to the Administrative Agent (which may include telecopy transmission
          of a signed signature page of this Agreement) that such party has
          signed a counterpart of this Agreement.

               (b) The Lenders shall be satisfied with the corporate and legal
          structure and capitalization of Holdings, the Borrower and the
          Subsidiary Loan Parties, including the charter and by-laws of
          Holdings, the Borrower and each Subsidiary Loan Party and each
          agreement or instrument evidencing Indebtedness.

               (c) All Equipment Site Interests (if any) shall be owned by Real
          Estate Subsidiaries in accordance with Section 6.12. Each FCC License
          shall be owned by a License Subsidiary in accordance with Section
          6.13. No event shall have occurred that would subject any FCC License
          to revocation by the FCC.

               (d) The Purchase Agreement shall have been executed and
          delivered by the Borrower and Lucent and shall be in full force and
          effect.

The Administrative Agent shall notify the Borrower and the Lenders of the
Effective Date, and such notice shall be conclusive and binding.

               SECTION 4.02. Initial Availability Date. The obligations of the
                             -------------------------
Lenders to make Loans hereunder on the occasion of the first Borrowing hereunder
shall be subject to the occurrence of the Effective Date and the satisfaction
(or waiver in accordance with Section 9.02) of the following additional
conditions:

               (a) The Administrative Agent shall have received a favorable
          written

                                      46
<PAGE>

     opinion or opinions (addressed to the Agents and the Lenders and dated the
     Effective Date) of one or more counsel for the Loan Parties reasonably
     satisfactory to the Administrative Agent, collectively to the effect set
     forth in Exhibit J, and covering such other matters relating to the Loan
     Parties, the Loan Documents or the Transactions as the Administrative Agent
     shall reasonably request. Holdings and the Borrower hereby request their
     counsel referred to in this paragraph to deliver such opinions.

          (b)  The Administrative Agent shall have received such documents and
     certificates as the Administrative Agent or its counsel may reasonably
     request relating to the organization, existence and good standing of the
     Loan Parties, the authorization of the Transactions and any other legal
     matters relating to the Loan Parties, the Loan Documents or the
     Transactions, all in form and substance satisfactory to the Administrative
     Agent and its counsel.

          (c)  The Administrative Agent shall have received a certificate, dated
     the Effective Date and signed by the President, a Vice President or a
     Financial Officer of the Borrower, confirming compliance with the
     conditions set forth in paragraphs (a) and (b) of Section 4.04.

          (d)  The Agents and Lucent shall have received all fees and other
     amounts due and payable to them hereunder on or prior to the Initial
     Availability Date, including, to the extent invoiced, reimbursement or
     payment of all expenses required to be reimbursed or paid by the Borrower
     hereunder or under any other Loan Document.

          (e)  The Collateral and Guarantee Requirement shall have been
     satisfied and the Agents shall have received a completed Perfection
     Certificate dated the Effective Date and signed by a Financial Officer of
     the Borrower, together with all attachments contemplated thereby, including
     (i) the results of a search of the Uniform Commercial Code (or equivalent)
     filings made with respect to the Borrower and the Subsidiary Loan Parties
     in the jurisdictions contemplated by the Perfection Certificate and (ii)
     copies of the financing statements (or similar documents) disclosed by such
     search and evidence reasonably satisfactory to the Agents that the Liens
     indicated by such financing statements (or similar documents) are permitted
     by Section 6.02 or have been released.

          (f)  The Administrative Agent shall have received evidence
     satisfactory to it that the insurance required by Section 5.07 is in effect
     and that the Collateral Agent has been named as an additional insured and
     loss payee under all insurance policies to be maintained with respect to
     the properties of the Borrower and the Subsidiary Loan Parties constituting
     the Collateral.

          (g)  The Collateral Agent shall have received a counterpart of the
     Subordination Agreement duly executed and delivered on behalf of each Loan
     Party.

          (h)  The Administrative Agent shall have received a counterpart of the
     Parent Agreement duly executed and delivered on behalf of the Parent.

          (i)  The Lenders shall have received a permit issued to the Borrower
     by the California Department of Corporations pursuant to Section 25113 of
     the

                                      47
<PAGE>

     California Corporation Code exempting the Loans from California usury laws,
     or, if such permit is not issued, the Lenders shall be reasonably satisfied
     that California usury laws shall not be applicable to the Loans.

          (j)  The Parent shall have obtained all consents and waivers required
     under the Credit Agreement dated as of September 23, 1998, among the
     Parent, QUALCOMM Incorporated and ABN Amro Bank N.V., as Administrative
     Agent, in connection with the Transactions, on terms reasonably
     satisfactory to the Lenders.

Notwithstanding the foregoing, the Lenders shall not be required to make Loans
hereunder unless each of the foregoing conditions is satisfied (or waived
pursuant to Section 9.02) at or prior to 3:00 p.m., New York City time, on
November 1, 1999 (and, in the event such conditions are not so satisfied or
waived, the Commitments shall terminate at such time).

          SECTION 4.03. [intentionally omitted]

          SECTION 4.04. Each Borrowing. The obligation of each Lender to
                        --------------
make a Loan on the occasion of any Borrowing is subject to the satisfaction of
the following conditions:

          (a)  At the time of and immediately after giving effect to such
     Borrowing, the representations and warranties of the Loan Parties set forth
     in the Loan Documents shall be true and correct on and as of the date of
     such Borrowing.

          (b)  At the time of and immediately after giving effect to such
     Borrowing, no Default shall have occurred and be continuing.

          (c)  At the time of and immediately after giving effect to such
     Borrowing, (i) the aggregate principal amount of all Loans (excluding up to
     $30,000,000 of Loans made to finance the Permitted Third Party Payments
     described in clause (a) of the definition of "Permitted Third Party
     Payments") made hereunder (whether or not repaid) shall not exceed [*] of
     the sum of the aggregate Purchase Price payments made to Lucent at or prior
     to such time plus the aggregate Eligible Agency Plan Payments made at or
     prior to such time, (ii) the ratio of Total Indebtedness to Total
     Contributed Capital shall not exceed 2.0 to 1.0 and (iii) the aggregate
     principal amount of all Eligible Secured Debt described in clauses (a), (b)
     and (c) of the definition of "Eligible Secured Debt" that has been incurred
     (on a cumulative basis, whether or not such Eligible Secured Debt remains
     outstanding) shall not exceed $1,845,000,000.

          (d)  In the case of a Borrowing to finance the Purchase Price of any
     assets, a License Subsidiary shall have a valid FCC License for the
     geographic market in which such assets are to be installed or operated;
     provided that the condition set forth in this paragraph (d) shall not apply
     --------
     with respect to Borrowings to finance the Purchase Price or Eligible Agency
     Plan Payments in respect of assets that are being resold to ChaseTel prior
     to consummation of the ChaseTel Acquisition in accordance with Section
     6.04(c).

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                      48
<PAGE>

Each Borrowing shall be deemed to constitute a representation and warranty by
the Borrower on the date thereof as to the matters specified in paragraphs (a),
(b), (c) and (d) of this Section.

          SECTION 4.05. Restatement. The amendment and restatement of the
                        -----------
Existing Agreement as provided herein shall not become effective until the
Administrative Agent (or its counsel) shall have received from each party hereto
either (a) a counterpart of this Agreement signed on behalf of such party or (b)
written evidence satisfactory to the Administrative Agent (which may include
telecopy transmission of a signed signature page of this Agreement) that such
party has signed a counterpart of this Agreement. Upon satisfaction of the
foregoing conditions, the Existing Agreement shall be deemed amended and
restated in its entirety in the form of this Agreement, effective as of the
Restatement Date. Unless and until the foregoing conditions are satisfied, the
Existing Agreement shall continue in effect and shall not be affected hereby.

                                  ARTICLE V

                             Affirmative Covenants
                             ---------------------

          Until the Commitments have expired or been terminated and the
 principal of and interest on each Loan and all fees payable hereunder shall
 have been paid in full, each of Holdings and the Borrower covenants and agrees
 with the Lenders that:

          SECTION 5.01. Financial Statements and Other Information. The Borrower
                        ------------------------------------------
 will furnish to the Administrative Agent and each Lender:

          (a)  within 90 days after the end of each fiscal year of the Borrower
     (A) the audited consolidated balance sheets of each of the Parent and its
     subsidiaries and of the Borrower and its Subsidiaries, respectively, and
     their respective related statements of operations, stockholders' equity and
     cash flows as of the end of and for such year, setting forth in each case
     in comparative form the figures for the previous fiscal year all reported
     on by PricewaterhouseCoopers LLP or other independent public accountants of
     recognized national standing (without a "going concern" or like
     qualification or exception and without any qualification or exception as to
     the scope of such audit) to the effect that such consolidated financial
     statements present fairly in all material respects the financial condition
     and results of operations of each of the Parent and its subsidiaries and of
     the Borrower and its Subsidiaries, respectively, in each case on a
     consolidated basis in accordance with GAAP consistently applied and (B) a
     combined consolidated balance sheet of the Borrower and the Subsidiary Loan
     Parties and related statements of operations, stockholders' equity and cash
     flows, for the same period as (and prepared based on) the financial
     statements referred to in clause (A) above, consolidated as though all the
     License Subsidiaries were subsidiaries of the Borrower, and prepared by the
     same firm of independent public accountants as reported on such financial
     statements;

          (b)  within 45 days after the end of each of the first three fiscal
     quarters of each fiscal year of the Borrower, the consolidated balance
     sheets of each of the Parent and its subsidiaries and of the Borrower and
     its Subsidiaries, respectively, and their respective related statements of
     operations, stockholders' equity and cash

                                      49
<PAGE>

     flows as of the end of and for such fiscal quarter and the then elapsed
     portion of the fiscal year setting forth in each case in comparative form
     the figures for the corresponding period or periods of (or, in the case of
     the balance sheet, as of the end of) the previous fiscal year all certified
     by one of its Financial Officers as presenting fairly in all material
     respects the financial condition and results of operations of each of the
     Parent and its subsidiaries and of the Borrower and its Subsidiaries,
     respectively, in each case on a consolidated basis in accordance with GAAP
     consistently applied, subject to normal year-end audit adjustments and the
     absence of footnotes and (B) a combined consolidated balance sheet of the
     Borrower and the Subsidiary Loan Parties and related statements of
     operations, stockholders' equity and cash flows, for the same period as
     (and prepared based on) the financial statements referred to in clause (A)
     above, consolidated as though all the License Subsidiaries were
     subsidiaries of the Borrower, and prepared and certified by one of the
     Borrower's Financial Officers;

          (c)  within 30 days after the end of each fiscal month of the Borrower
      (other than after the end of a fiscal quarter), the consolidated balance
      sheet of the Borrower and its Subsidiaries and related statements of
      operations, stockholders' equity and cash flows as of the end of and for
      such fiscal month and the then elapsed portion of the fiscal year, all
      certified by one of its Financial Officers as presenting in all material
      respects the financial condition and results of operations of the Borrower
      and its Subsidiaries on a consolidated basis in accordance with GAAP
      consistently applied, subject to normal year-end audit adjustments and the
      absence of footnotes;

          (d)  concurrently with any delivery of the Borrower's financial
     statements under clause (a) or (b) above, a certificate of a Financial
     Officer of the Borrower (i) certifying as to whether a Default has occurred
     and, if a Default has occurred, specifying the details thereof and any
     action taken or proposed to be taken with respect thereto, (ii) setting
     forth reasonably detailed calculations demonstrating compliance with
     Sections 6.15, 6.18, 6.19, 6.20 and 6.21, and (iii) stating whether any
     change in GAAP or in the application thereof has occurred since the date of
     the Borrower's audited financial statements referred to in Section 3.04
     and, if any such change has occurred, specifying the effect of such change
     on the financial statements accompanying such certificate;

          (e)  concurrently with any delivery of financial statements under
     clause (a) above, a certificate of the accounting firm that reported on
     such financial statements stating whether they obtained knowledge during
     the course of their examination of such financial statements of any Default
     (which certificate may be limited to the extent required by accounting
     rules or guidelines);

          (f)  promptly after the same become available but in any event within
     30 days after the end of each fiscal year of the Borrower, the Business
     Plan for the current fiscal year and updated financial projections through
     the Maturity Date;

          (g)  promptly after the end of (i) each fiscal year of the Borrower
     and (ii) each fiscal quarter a certificate signed on behalf of the Borrower
     by the President, a Vice President or a Financial Officer of the Borrower,
     setting forth the number of Covered POPS and the number of Subscribers as
     of the end of such fiscal year;

                                      50
<PAGE>

          (h)  promptly after the same become publicly available, copies of all
     periodic and other reports, proxy statements and other materials filed by
     any Loan Party with the Securities and Exchange Commission, or any
     Governmental Authority succeeding to any or all of the functions of said
     Commission, or with any national securities exchange, or distributed by the
     Parent to its shareholders generally or by Holdings to its securityholders
     generally, as the case may be;

          (i)  promptly after execution thereof, copies of any agreement,
     instrument or other document evidencing or governing any other Eligible
     Secured Debt and of any amendment or modification thereto or waiver
     thereunder; and

          (j)  promptly following any request therefor, such other information
     regarding the operations, business affairs and financial condition of
     Holdings, the Borrower or any Subsidiary, or compliance with the terms of
     any Loan Document, as either Agent or any Lender may reasonably request.

          SECTION 5.02. Notices of Material Events. The Borrower will furnish to
                        --------------------------
the Administrative Agent and each Lender prompt written notice of the following:

          (a)  the occurrence of any Default;

          (b)  the filing or commencement of any action, suit or proceeding by
     or before any arbitrator or Governmental Authority against or affecting the
     Borrower or any Affiliate thereof that, if adversely determined, could
     reasonably be expected to result in a Material Adverse Effect;

          (c)  the occurrence of any ERISA Event that, alone or together with
     any other ERISA Events that have occurred, could reasonably be expected to
     result in liability of the Borrower and the Subsidiary Loan Parties in an
     aggregate amount exceeding $1,000,000; and

          (d) any other development that results in, or could reasonably be
     expected to result in, a Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of
a Financial Officer or other executive officer of the Borrower setting forth the
details of the event or development requiring such notice and any action taken
or proposed to be taken with respect thereto.

          SECTION 5.03. Information Regarding Collateral. (a) The Borrower will
                        --------------------------------
furnish to the Agents prompt written notice of any change (i) in the Borrower's
or any Subsidiary Loan Party's corporate name or in any trade name used to
identify it in the conduct of its business or in the ownership of its
properties, (ii) in the location of the Borrower's or any Subsidiary Loan
Party's chief executive office, its principal place of business, any office in
which it maintains books or records relating to the Collateral or any premises
where any asset constituting Collateral is installed or situated (including the
installation of any asset constituting Collateral at a location where Collateral
has not previously been located), (iii) in the Borrower's or any Subsidiary Loan
Party's identity or corporate structure or (iv) in the Borrower's or any
Subsidiary Loan Party's Federal Taxpayer Identification Number. The Borrower
agrees not to effect or permit any change referred to in the preceding sentence
unless all filings have been made under the Uniform

                                      51
<PAGE>

Commercial Code or otherwise that are required in order for the Collateral Agent
to continue at all times following such change to have a valid, legal and
perfected security interest in all the Collateral. The Borrower also agrees
promptly to notify the Agents if any material portion of the Collateral is
damaged or destroyed.

          (b) Each year, at the time of delivery of annual financial statements
for the Borrower with respect to the preceding fiscal year pursuant to clause
(a) of Section 5.01, the Borrower shall deliver to the Agents a certificate of a
Financial Officer of the Borrower (i) setting forth the information required
pursuant to Section 2 of the Perfection Certificate or confirming that there has
been no change in such information since the date of the Perfection Certificate
delivered on the Effective Date or the date of the most recent certificate
delivered pursuant to this Section and (ii) certifying that all Uniform
Commercial Code financing statements (including fixture filings, as applicable)
or other appropriate filings, recordings or registrations, including all
refilings, rerecordings and reregistrations, containing a description of the
Collateral have been filed of record in each governmental, municipal or other
appropriate office in each jurisdiction identified pursuant to clause (i) above
to the extent necessary to protect and perfect the security interests under the
Security Agreement for a period of not less than 18 months after the date of
such certificate (except as noted therein with respect to any continuation
statements to be filed within such period).

          SECTION 5.04. Existence; Conduct of Business. Each of Holdings and the
                        ------------------------------
Borrower will, and will cause each of the Subsidiary Loan Parties to, do or
cause to be done all things necessary to preserve, renew and keep in full force
and effect its legal existence and the rights, licenses, permits, privileges and
franchises material to the conduct of the business of the Borrower and the
Subsidiary Loan Parties, taken as a whole; provided that the foregoing shall not
                                           --------
prohibit any merger, consolidation, liquidation or dissolution permitted under
Section 6.03.

          SECTION 5.05. Payment of Obligations. Each of Holdings and the
                        ----------------------
Borrower will, and will cause each of the Subsidiary Loan Parties to, pay its
Indebtedness and other obligations, including Tax liabilities, before the same
shall become delinquent or in default, except where (a) the validity or amount
thereof is being contested in good faith by appropriate proceedings, (b) the
Borrower or such Subsidiary Loan Party has set aside on its books adequate
reserves with respect thereto in accordance with GAAP, (c) such contest
effectively suspends collection of the contested obligation and the enforcement
of any Lien securing such obligation and (d) the failure to make payment pending
the resolution of such contest could not reasonably be expected to result in a
Material Adverse Effect.

          SECTION 5.06. Maintenance of Properties. The Borrower will, and will
                        -------------------------
cause each of the Subsidiary Loan Parties to, keep and maintain all property
material to the conduct of its business in good working order and condition,
ordinary wear and tear excepted.

          SECTION 5.07. Insurance. (a) The Borrower will, and will cause each of
                        ---------
the Subsidiary Loan Parties to, maintain, with financially sound and reputable
insurance companies, insurance in such amounts and against such risks (including
fire and other risks insured by extended coverage) as are customarily maintained
by companies engaged in the same or similar businesses operating in the same or
similar locations, including public liability insurance against claims for
personal injury, death or

                                      52
<PAGE>

property damage occurring upon, about or in connection with the use of any
properties owned, occupied or controlled by it as well as such other insurance
as may be required by law.

          (b)  All policies of casualty insurance maintained by or for the
benefit of the Borrower or any Subsidiary Loan Party with respect to any of the
Collateral shall be endorsed or otherwise amended to include a "standard" or
"New York" lender's loss payable endorsement, in favor of and satisfactory to
the Collateral Agent, which endorsement shall provide that the insurance carrier
shall pay all proceeds otherwise payable to any Loan Party under such policies
directly to the Collateral Agent. All such policies also shall provide that none
of the Loan Parties, the Administrative Agent, the Collateral Agent nor any
other party shall be a coinsurer thereunder and shall contain a "Replacement
Cost Endorsement", without any deduction for depreciation, "mortgagee's
interest"/"breach of warranty coverage" and such other provisions as the
Administrative Agent or the Collateral Agent may reasonably require from time to
time to protect the interests of the Lenders. Each such policy also shall
provide that it shall not be canceled, modified or not renewed (i) by reason of
nonpayment of premium except upon not less than 10 days' prior written notice
thereof by the insurer to the Administrative Agent and the Collateral Agent
(giving the Administrative Agent and the Collateral Agent the right to cure
defaults in the payment of premiums) or (ii) for any other reason except upon
not less than 30 days' prior written notice thereof by the insurer to the
Administrative Agent and the Collateral Agent. The Borrower shall deliver to the
Administrative Agent and the Collateral Agent, prior to the cancelation,
modification or nonrenewal of any such policy of insurance, a copy of a renewal
or replacement policy (or other evidence of renewal of a policy previously
delivered to the Administrative Agent and the Collateral Agent) together with
evidence satisfactory to the Administrative Agent and the Collateral Agent of
payment of the premium therefor.

          (c)  The Borrower shall notify the Administrative Agent and the
Collateral Agent immediately whenever any separate insurance concurrent in form
or contributing in the event of loss with that required to be maintained under
this Section is taken out by any Loan Party, and shall promptly deliver to the
Administrative Agent and the Collateral Agent a duplicate original copy of such
policy or policies.

          (e)  The Borrower shall cause the Administrative Agent to be named as
a loss payee under all liability insurance policies required to be maintained
pursuant to this Section 5.07.

          SECTION 5.08. Books and Records; Inspection Rights. Each of Holdings
                        ------------------------------------
and the Borrower will, and will cause each of the Subsidiary Loan Parties to,
keep proper books of record and account in which full, true and correct entries
are made of all dealings and transactions in relation to its business and
activities. Each of Holdings and the Borrower will, and will cause each of the
Subsidiary Loan Parties to, permit any representatives designated by either
Agent or any Lender, upon reasonable prior notice, to visit and inspect its
properties, to examine and make extracts from its books and records, and to
discuss its affairs, finances and condition with its officers and independent
accountants, all during normal business hours but as often as reasonably
requested.

          SECTION 5.09. Compliance with Laws and Agreements. Each of Holdings
                        -----------------------------------
and the Borrower will, and will cause each of the Subsidiary Loan Parties to,
comply with all laws, rules, regulations and orders of any Governmental
Authority

                                      53
<PAGE>

(including ERISA and all Environmental Laws) applicable to it or its property
and all indentures, agreements and other instruments binding upon it or its
property, except where the failure to do so, individually or in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect.

          SECTION 5.10. Use of Proceeds. The proceeds of the Loans will be used
                        ---------------
solely (a) to make payments in respect of the Purchase Price, Eligible Agency
Plan Payments and Permitted Third Party Payments and (b) to pay fees payable
under Sections 2.10(a), 2.10(b) and 2.10(c), interest payable to Lucent, the
Agent or the Lenders under this Agreement and out-of-pocket expenses incurred in
connection with the negotiation, execution and delivery of the Loan Documents;
provided that (i) proceeds of Loans shall not be used to make payments in
--------
respect of the purchase price of equipment or services referred to in clause (c)
of the definition of Permitted Third Party Payments unless such equipment or
services (as applicable) shall be used solely in markets which are generally
utilizing equipment provided by Lucent (as opposed to markets which are
generally utilizing equipment provided by competitors of Lucent) and (ii)
proceeds of Loans shall not be used to purchase an FCC License as referred to in
clause (d) of the definition of Permitted Third Party Payments unless such FCC
License is for a market that is to generally utilize equipment provided by
Lucent (as opposed to a market that is to generally utilize equipment provided
by competitors of Lucent).

          SECTION 5.11. Additional Subsidiaries. If any additional Subsidiary
                        -----------------------
Loan Party is formed or acquired after the Effective Date, the Borrower will,
within three Business Days after such Subsidiary Loan Party is formed or
acquired, (a) notify the Agents and the Lenders thereof, (b) cause the
Collateral and Guarantee Requirement to be satisfied with respect to such
Subsidiary Loan Party and with respect to any Equity Interest in or Indebtedness
of such Subsidiary Loan Party owned by or on behalf of any Loan Party and (c)
cause such Subsidiary Loan Party to become a party to the Subordination
Agreement.

          SECTION 5.12. Further Assurances. (a) Each of Holdings and the
                        ------------------
Borrower will, and will cause each Subsidiary Loan Party to, execute any and all
further documents, financing statements, agreements and instruments, and take
all such further actions (including the filing and recording of financing
statements, fixture filings, mortgages, deeds of trust and other documents),
which may be required under any applicable law, or which either Agent or the
Required Lenders may reasonably request, to cause the Collateral and Guarantee
Requirement to be and remain satisfied, all at the expense of the Loan Parties.
The Borrower also agrees to provide to the Agents, from time to time upon
request, evidence reasonably satisfactory to the Agents as to the perfection and
priority of the Liens created or intended to be created by the Security
Documents.

          (b) If any material assets (including any real property or
improvements thereto or any interest therein, but excluding Equipment Site
Interests acquired by Real Estate Subsidiaries) are acquired by the Borrower or
any Subsidiary Loan Party after the Effective Date (other than assets
constituting Collateral under the Security Agreement that become subject to the
Lien of the Security Agreement upon acquisition thereof), the Borrower will
notify the Agents and the Lenders thereof, and, if requested by the
Administrative Agent or the Required Lenders, the Borrower will cause such
assets to be subjected to a Lien securing the Obligations and will take, and
cause the Subsidiary Loan Parties to take, such actions as shall be necessary or
reasonably requested by the

                                      54
<PAGE>

Administrative Agent to grant and perfect such Liens, including actions
described in paragraph (a) of this Section, all at the expense of the Loan
Parties.

          (c) Each of Holdings and the Borrower will, and will cause each
Subsidiary Loan Party to, ensure that the Loans made from time to time pursuant
to this Agreement, and all "Permitted Refinancings" (as such term is defined in
                            ----------------------
the Collateral Agency Agreement) of such Loans, shall at all times constitute
Eligible Secured Debt and are permitted to be incurred and secured by all
Collateral in accordance with the Collateral Agency Agreement.

          SECTION 5.13. Casualty and Condemnation. (a) The Borrower will furnish
                        --------------------------
to the Agents and the Lenders prompt written notice of any casualty or other
damage to any portion of any Collateral or the commencement of any action or
proceeding for the taking of any Collateral or any part thereof or interest
therein under power of eminent domain or by condemnation or similar proceeding.

          (b) If any event described in paragraph (a) of this Section results in
Net Proceeds (whether in the form of insurance proceeds, condemnation award or
otherwise), the Collateral Agent is authorized to collect such Net Proceeds and,
if received by the Borrower or any Subsidiary Loan Party, such Net Proceeds
shall be paid over to the Collateral Agent. All such Net Proceeds retained by or
paid over to the Collateral Agent shall be held by the Collateral Agent and
released from time to time to pay the costs of repairing, restoring or replacing
the affected property or purchasing additional property constituting Collateral
in accordance with the terms of this Agreement and the applicable provisions of
the Security Documents, subject to the provisions of the Security Documents
regarding application of such Net Proceeds during a Default.

          (c) If any Net Proceeds retained by or paid over to the Collateral
Agent as provided above continue to be held by the Collateral Agent on the date
that any prepayment is due pursuant to Section 2.09(b) in respect of the event
resulting in such Net Proceeds, then such Net Proceeds shall be applied to
prepay Borrowings as provided in Section 2.09(b).

          SECTION 5.14. Interest Rate Protection. After the consolidated Long-
                        ------------------------
Term Indebtedness (excluding Primary Subordinated Obligations) of the Borrower
and the Subsidiary Loan Parties exceeds $225,000,000, the Borrower will from
time to time enter into and maintain in effect one or more Hedging Agreements
satisfactory to the Required Lenders, the effect of which shall be to fix or
limit the interest cost to the Borrower and the Subsidiary Loan Parties with
respect to such portion of their Long-Term Indebtedness as shall be necessary in
order that, at all times, at least 50% of consolidated Long-Term Indebtedness
(excluding Primary Subordinated Obligations) of the Borrower and the Subsidiary
Loan Parties shall be comprised of a combination of (a) Indebtedness bearing
interest at a fixed rate and (b) Indebtedness covered by such Hedging
Agreements.

          SECTION 5.15. Intercompany Agreements. Each of Holdings and the
                        -----------------------
Borrower agrees that, prior to July 15, 2000, all intercompany agreements and
arrangements between Holdings, the Borrower or any Subsidiary Loan Party, on the
one hand, and the Parent or any other Affiliate of Holdings, the Borrower or any
Subsidiary Loan Party (other than Holdings, the Borrower or any Subsidiary Loan
Party), on the other hand, including with respect to tax sharing, management
fees or sharing of

                                      55
<PAGE>

facilities, services or employees, shall be completed on terms and conditions
reasonably satisfactory to the Required Lenders and shall be set forth in
written agreements (the "Intercompany Agreements") reasonably satisfactory in
                         -----------------------
form and substance to the Required Lenders, and true and correct copies of such
Intercompany Agreements shall have been delivered to the Lenders.

          SECTION 5.16. Agreement Regarding FCC Licenses. Within 60 days after
                        --------------------------------
the written request of the Required Lenders that the Borrower and any License
Subsidiary do so, the Borrower shall, and shall cause such License Subsidiary
to, execute and deliver a written agreement, pursuant to which the Borrower or a
Subsidiary, as applicable, is granted the right to use all FCC Licenses held by
such License Subsidiary.

                                  ARTICLE VI

                              Negative Covenants
                              ------------------

          Until the Commitments have expired or terminated and the
  principal of and interest on each Loan and all fees payable hereunder have
  been paid in full, each of Holdings and the Borrower covenants and agrees with
  the Lenders that:

          SECTION 6.01. Indebtedness; Preferred Stock. The Borrower will not,
                        -----------------------------
nor will it permit any Subsidiary Loan Party to, create, incur, assume or permit
to exist any Indebtedness or issue any preferred stock, except:

          (a) Indebtedness created under the Loan Documents and other Eligible
Secured Debt;

          (b) subject to Section 6.04, Indebtedness of the Borrower to any
Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary;

          (c) subject to Section 6.04, Guarantees by the Borrower of
Indebtedness of any Subsidiary;

          (d) Indebtedness of the Borrower or any Subsidiary incurred to finance
the acquisition, construction or improvement of any fixed or capital assets by
the Borrower or such Subsidiary (other than assets that are an integral part of
any of the telecommunications or data network systems of the Borrower and its
Subsidiaries or other assets that become accessions to such assets or the
removal or loss of which would adversely affect the value of any such assets),
including Capital Lease Obligations and any Indebtedness assumed in connection
with the acquisition of any such assets or secured by a Lien on any such assets
prior to the acquisition thereof; provided that (A) such Indebtedness is
                                  --------
incurred prior to or within 90 days after such acquisition or the completion of
such construction or improvement and (B) any such Indebtedness incurred in
connection with any particular acquisition, construction or improvement shall
not exceed 90% of the cost of such acquisition, construction or improvement;
provided further that the aggregate principal amount of such Indebtedness (and
-------- -------
Indebtedness incurred to refinance such Indebtedness permitted by clause (f)
below) shall not exceed $10,000,000 at any time outstanding;

          (e) Indebtedness outstanding on the Effective Date and set forth on

                                      56
<PAGE>

Schedule 6.01;

          (f) Indebtedness of the Borrower incurred to refinance any
Indebtedness referred to in clause (d) or (e) above and Indebtedness of any
Subsidiary incurred to refinance any Indebtedness of such Subsidiary referred to
in clause (d) or (e) above; provided that (i) the principal amount of any such
                            --------
Indebtedness does not exceed the principal amount of, plus accrued interest and
any prepayment premiums applicable to, the Indebtedness refinanced thereby, (ii)
any such Indebtedness has a scheduled maturity date that is on or after the
scheduled maturity date of the Indebtedness refinanced thereby, (iii) any such
Indebtedness has a weighted average life to maturity that is equal to or longer
than the remaining weighted average life to maturity of the Indebtedness
refinanced thereby (determined immediately prior to giving effect to such
refinancing), (iv) any such Indebtedness does not include any provisions that
may require mandatory Repayment thereof prior to scheduled maturity, other than
scheduled repayments taken into account in determining compliance with clause
(iii) above and other provisions that are not materially more burdensome than
any such provisions included in the Indebtedness refinanced thereby, (v) any
such Indebtedness shall not be secured by any Lien other than Liens on assets
securing the Indebtedness being refinanced thereby, and shall not be Guaranteed
by any Subsidiary other than any Subsidiary that Guaranteed the Indebtedness
being refinanced thereby, and (vi) if the Indebtedness being refinanced is
subordinated to the Obligations, then such refinancing Indebtedness shall be
subordinated to the Obligations on terms no less favorable to the Lenders than
the Indebtedness being refinanced;

          (g) Indebtedness of the Borrower that constitutes a Primary
Subordinated Obligation;

          (h) other unsecured Indebtedness of the Borrower in an aggregate
principal amount not exceeding $5,000,000 at any time outstanding; and

          (i) FCC Debt and Permitted License Acquisition Debt of any License
Subsidiary incurred to finance the purchase of any FCC License owned by such
License Subsidiary; provided that (i) the aggregate principal amount of FCC Debt
                    --------
and Permitted License Acquisition Debt of any License Subsidiary shall not
exceed 75% of the sum of such principal amount plus the additional cash
consideration paid to acquire the FCC License or Licenses acquired by such
License Subsidiary, and (ii) the aggregate principal amount of Permitted License
Acquisition Debt incurred on a cumulative basis during the term of this
Agreement shall not exceed [*]; provided further that for the purposes of
                                ----------------
subclause (ii) of this clause (i) "Permitted License Acquisition Debt" shall not
include any portion of Airgate Debt that is repaid prior to September 20, 2000.

          SECTION 6.02. Liens. (a) The Borrower will not, nor will it permit any
                        -----
Subsidiary Loan Party to, create, incur, assume or permit to exist any Lien on
any property or asset now owned or hereafter acquired by it, or assign or sell
any income or revenues (including accounts receivable) or rights in respect of
any thereof, except:

          (i)   Liens created under the Security Documents;

          (ii)  Permitted Encumbrances;

          (iii) any Lien on any property or asset of the Borrower or any
Subsidiary

[*] Certain material (indicated by an asterisk) has been omitted from this
document pursuant to a request for confidential treatment. The omitted material
has been filed separately with the Securities and Exchange Commission.

                                      57
<PAGE>

     existing on the date hereof and set forth in Schedule 6.02; provided that
     (A) such Lien shall not apply to any other property or asset of the
     Borrower or any Subsidiary Loan Party and (B) such Lien shall secure only
     those obligations which it secures on the date hereof and refinancings
     thereof that satisfy the criteria set forth in clause (f) of Section 6.01;

          (iv) any Lien existing on any property or asset prior to the date that
     such property or asset was first acquired by the Borrower or any Subsidiary
     or any Affiliate thereof or existing on any property or asset of any Person
     that becomes a Subsidiary after the date hereof prior to the time such
     Person becomes a Subsidiary; provided that (A) such Lien is not created in
                                  --------
     contemplation of or in connection with such acquisition or such Person
     becoming a Subsidiary, (B) such Lien shall not apply to any other property
     or assets of the Borrower or any Subsidiary Loan Party and (C) such Lien
     shall secure only those obligations which it secures on the date of such
     acquisition or the date such Person becomes a Subsidiary, as the case may
     be, and refinancings thereof that satisfy the criteria set forth in clause
     (f) of Section 6.01;

          (v)  Liens on fixed or capital assets (other than assets that are an
     integral part of any of the telecommunications or data network systems of
     the Borrower and its Subsidiaries or other assets that become accessions to
     such assets or the removal or loss of which would adversely affect the
     value of any such assets) acquired, constructed or improved by the Borrower
     or a Subsidiary; provided that (A) such Liens secure only Indebtedness
                      --------
     permitted by clause (d) of Section 6.01 or a refinancing thereof permitted
     by clause (f) of Section 6.01, (B) such Liens and the Indebtedness secured
     thereby are incurred prior to or within 90 days after such acquisition or
     the completion of such construction or improvement, (C) the Indebtedness
     secured thereby does not exceed 90% of the cost of acquiring, constructing
     or improving such fixed or capital assets and (D) such Liens shall not
     apply to any other property or assets of the Borrower or any Subsidiary
     Loan Party; and

          (vi) any Lien on any FCC License owned by any License Subsidiary
     securing FCC Debt of such Subsidiary incurred to finance the purchase of
     such FCC License.

          (b)  Notwithstanding the foregoing, the Borrower will not, nor will it
permit any Subsidiary Loan Party to, create any Lien (other than any Permitted
Encumbrance, Liens created under the Security Documents and Liens permitted by
clause (vi) of Section 6.01(a) above) on any FCC License.

          SECTION 6.03. Fundamental Changes; Corporate Structure. (a) Neither
                        ----------------------------------------
Holdings nor the Borrower will, nor will they permit any Subsidiary Loan Party
to, merge into or consolidate with any other Person, or permit any other Person
to merge into or consolidate with it, or sell, transfer, lease or otherwise
dispose of (in one transaction or in a series of transactions) all or
substantially all of its assets, or all or substantially all of the Equity
Interests of any of any Subsidiary Loan Party (in each case, whether now owned
or hereafter acquired), or liquidate or dissolve, except that, if at the time
thereof and immediately after giving effect thereto no Default shall have
occurred and be continuing (i) any Subsidiary may merge into any other
Subsidiary, (ii) any Subsidiary may sell, transfer, lease or otherwise dispose
of its assets to another Subsidiary, (iii) any Subsidiary

                                      58

<PAGE>

may liquidate or dissolve if the Borrower determines in good faith that such
liquidation or dissolution is in its best interests and is not materially
disadvantageous to the Lenders or (iv) a Subsidiary may merge as contemplated by
clause (vi) of Section 6.04(a) in connection with the ChaseTel Acquisition or
(v) ChaseTel may merge with and into the Borrower if the Borrower is the
surviving entity in such merger.

               (b)  The Borrower will not, nor will it permit any of its
Subsidiaries to, engage to any material extent in any business other than the
wireless telecommunications and data networking business and businesses
reasonably related thereto, in each case in the United States.

               (c)  The Borrower will conduct its business as an operating
company or through one or more operating Subsidiaries, which, together with the
Borrower, shall own all equipment and other assets (other than FCC Licenses and
Equipment Site Interests) used to conduct such business.

               (d)  Each Subsidiary will be wholly owned by the Borrower and
will be either (i) an operating Subsidiary formed for the purpose of conducting
business in one or more geographical markets as contemplated by paragraph (c)
above or (ii) a Real Estate Subsidiary.

               (e)  The Borrower will not issue any Equity Interests (or
warrants, options or other rights in respect thereof) other than shares of
common stock issued to Holdings that are pledged pursuant to the Borrower Pledge
Agreement. The Borrower will not permit any Subsidiary Loan Party to issue any
Equity Interests (or warrants, options or other rights in respect thereof) other
than (i) Equity Interests issued by Subsidiaries to the Borrower that are
pledged pursuant to the Borrower Pledge Agreement and (ii) Equity Interests
issued by License Subsidiaries to the Parent that are pledged pursuant to the
Parent Pledge Agreement.

               (f)  The Borrower will not (i) have any Subsidiaries organized in
a jurisdiction outside the United States of America or (ii) permit any
Collateral or other assets owned by the Borrower or any Subsidiary to be located
in a jurisdiction outside of the United States.

               (g)  Holdings will not issue any Equity Interests (or warrants,
options or other rights in respect thereof) other than (i) Equity Interests
issued to the Parent, (ii) shares of common stock of Holdings issued to Persons
other than the Parent or any Affiliate of the Parent and that do not result in a
Change of Control and (iii) Permitted Preferred Stock of Holdings issued in
compliance with the applicable provisions of this Agreement. The Net Proceeds of
any such Equity Interests issued by Holdings shall be contributed by Holdings to
the Borrower as common equity (except any such Net Proceeds retained by Holdings
to pay interest on Permitted Holdings Debt or to pay the ChaseTel Earnout).

                                      59
<PAGE>

               SECTION 6.04. Investments, Loans, Advances, Guarantees and
                             --------------------------------------------
Acquisitions; Asset Sales. (a) The Borrower will not, nor will it permit any
--------------------------
Subsidiary Loan Party to, purchase, hold or acquire (including pursuant to any
merger with any Person that was not a wholly owned Subsidiary prior to such
merger) any Equity Interests in, evidences of indebtedness or other securities
(including any option, warrant or other right to acquire any of the foregoing)
of, make or permit to exist any loans or advances to, Guarantee any obligations
of, or make or permit to exist any investment or any other interest in, any
other Person, or purchase or otherwise acquire (in one transaction or a series
of transactions) any assets of any other Person constituting a business unit,
except:

               (i)    Permitted Investments;

               (ii)   investments by the Borrower in Equity Interests in the
     Subsidiaries;

               (iii)  loans or advances made by the Borrower to any Subsidiary
     and made by any Subsidiary to the Borrower; provided that all such loans
                                                 --------
     and advances shall be evidenced by promissory notes pledged pursuant to the
     Borrower Pledge Agreement and shall be subordinated to the Obligations as
     provided in the Subordination Agreement;

               (iv)   Guarantees by the Borrower of obligations of the
     Subsidiaries;

               (v)    investments by the Borrower and the Subsidiaries received
     in connection with the bankruptcy or reorganization of, or settlement of
     delinquent accounts and disputes with, customers and suppliers, in each
     case in the ordinary course of business;

               (vi)   the ChaseTel Acquisition may be consummated; provided that
                                                                   --------
     (A) the ChaseTel Acquisition shall be consummated in accordance with the
     ChaseTel Purchase Agreement, without giving effect to any amendment or
     modification thereto or waiver thereunder that has not been approved by the
     Required Lenders (which approval shall not be unreasonably withheld), (B)
     ChaseTel shall become a wholly owned Subsidiary, either as a result of the
     ChaseTel Acquisition or by merger with a wholly owned Subsidiary promptly
     upon consummation of the ChaseTel Acquisition, (C) ChaseTel Licensee shall
     become a License Subsidiary as a result of the ChaseTel Acquisition, (D)
     neither the Borrower nor any Subsidiary Loan Party shall be directly or
     indirectly liable for the ChaseTel Earnout (except that the Borrower may
     agree to be liable therefor, subject to the same conditions that would
     apply to Restricted Payments pursuant to clause (c) of Section 6.06, and
     provided that any such obligation of the Borrower shall be subordinated to
     the Obligations on terms satisfactory to the Administrative Agent), (E) the
     ChaseTel Indebtedness shall be fully repaid (or, in the case of any such
     Indebtedness owing to the Parent or any of its subsidiaries, including the
     Borrower, forgiven and discharged without consideration) and all Liens
     securing the ChaseTel Indebtedness shall be released and terminated upon
     consummation of the ChaseTel Acquisition and (F) the Collateral and
     Guarantee Requirement shall be satisfied promptly upon consummation of the
     ChaseTel Acquisition; and

               (vii)  Permitted ChaseTel Financing.

                                      60
<PAGE>

               (b)  The Borrower will not, nor will it permit any Subsidiary
Loan Party to, sell, transfer, lease or otherwise dispose of any asset,
including any Equity Interest in any other Person owned by it, except:

               (i)    sales of inventory, obsolete, uneconomic or surplus
     equipment and Permitted Investments, in each case in the ordinary course of
     business;

               (ii)   transfers constituting investments permitted by paragraph
     (a) of this Section or Restricted Payments permitted by Section 6.06;

               (iii)  sales, transfers and dispositions by the Borrower or a
     Subsidiary to the Borrower or a Subsidiary;

               (iv)   prior to consummation of the ChaseTel Acquisition, the
     Borrower or a Subsidiary may resell to ChaseTel equipment purchased by the
     Borrower or a Subsidiary pursuant to the Purchase Agreement, in accordance
     with paragraph (c) of this Section; and

               (v)    other sales and dispositions by the Borrower and the
     Subsidiaries of assets (other than Equity Interests in any Subsidiary) with
     a fair market value not exceeding, in the aggregate, $1,000,000 during any
     fiscal year of the Borrower;

provided that all sales, transfers, leases and other dispositions permitted
--------
hereby (other than pursuant to clause (iii) above) shall be made for fair value
and solely for cash consideration (except that sales pursuant to clause (iv)
above shall be made as provided in paragraph (c) below).

               Any of the foregoing provisions of this Section 6.04(b)
notwithstanding, the Borrower and any Subsidiary Loan Party may sell or
otherwise transfer obsolete, uneconomic or surplus equipment to Ericsson
Wireless Communications Inc., Nortel Networks Inc. or Lucent Technologies Inc.
(or any of their respective Affiliates) in connection with the purchase or other
acquisition by the Borrower or any Subsidiary Loan Party from such transferee or
its Affiliates of upgraded equipment replacing the equipment so sold or
transferred provided that (i) the replacement equipment purchased or otherwise
acquired performs the same general function as the equipment so sold or
transferred, (ii) title to the equipment sold or otherwise transferred is not
transferred to the transferee until the Borrower or a Subsidiary Loan Party
acquires title to the upgraded equipment related thereto and such upgraded
equipment has become Collateral under the Security Agreement, (iii) the Borrower
and the Subsidiary Loan Parties may not sell or otherwise transfer to Nortel
Networks Inc. or Ericsson Wireless Communications Inc. or any of their
respective Affiliates pursuant to this sentence any equipment financed by
Lenders under this Agreement, and (iv) such sale or other transfer is made for
fair value.

               (c)  Prior to consummation of the ChaseTel Acquisition (but not
after the date that is one year after the Effective Date), the Borrower or a
Subsidiary may resell to ChaseTel any equipment purchased by the Borrower or a
Subsidiary pursuant to the Purchase Agreement and may finance any such sale with
Permitted ChaseTel Financing (referred to in clause (b) of the definition of
"Permitted ChaseTel Financing") in a principal amount equal to the Purchase
Price paid or payable in respect of such equipment; provided that:
                                                    --------

                                      61
<PAGE>

               (i)   the price at which any such equipment is sold to ChaseTel
          shall be equal to the price at which such equipment was purchased
          pursuant to the Purchase Agreement;

               (ii)  the obligation of ChaseTel to pay the purchase price for
          such equipment shall be financed with such Permitted ChaseTel
          Financing in a principal amount equal to such purchase price, bearing
          interest at a rate that is not less than the rate of interest
          applicable to the Loans hereunder;

               (iii) if any payment is received by the Borrower or any
          Subsidiary from or on behalf of ChaseTel in respect of any such resale
          of equipment or any such Permitted ChaseTel Financing, then such
          payment shall be applied to prepay an equal principal amount of the
          outstanding Borrowings hereunder;

               (iv)  the Borrower shall notify the Administrative Agent of each
          resale of equipment to ChaseTel pursuant to this paragraph at or prior
          to the date of such resale, which notice shall specify the Purchase
          Price of the equipment being resold; and

               (v)   neither the Borrower nor any Subsidiary shall sell to or
          finance any equipment for ChaseTel as contemplated hereby that would
          result in the total Purchase Price of all such equipment exceeding
          $40,000,000.

               SECTION 6.05. Hedging Agreements. The Borrower will not, nor will
                             ------------------
it permit any of the Subsidiary Loan Parties to, enter into any Hedging
Agreement, other than Hedging Agreements required by Section 5.14 and other
Hedging Agreements entered into by the Borrower in the ordinary course of
business to hedge or mitigate risks to which the Borrower or any Subsidiary is
exposed in the conduct of its business or the management of its liabilities.

               SECTION 6.06. Restricted Payments. Neither Holdings nor the
                             --------------------
Borrower will, nor will they permit any Subsidiary Loan Party to, declare or
make, or agree to pay or make, directly or indirectly, any Restricted Payment,
except (a) the Borrower may declare and pay dividends with respect to its
capital stock payable solely in additional shares of its common stock, (b)
Subsidiaries may declare and pay dividends and distributions to the Borrower,
(c) after the Parent pays the ChaseTel Earnout (but in any event not prior to
January 1, 2006), the Borrower may make Restricted Payments in an aggregate
amount not exceeding the lesser of $41,000,000 and the amount of such ChaseTel
Earnout paid by the Parent (and Holdings may make Restricted Payments with the
proceeds of any such Restricted Payments received by Holdings), provided that at
the time of and after giving effect to any such Restricted Payment (i) no
Default shall have occurred and be continuing, (ii) the Borrower shall be in
compliance with Sections 6.18 and 6.19 determined on a pro forma basis as of the
last day of the most recently ended fiscal quarter of the Borrower for which
financial statements are available as though such payment had been made on the
first day of each relevant period for testing compliance with such covenant, and
(iii) the ratio of Annualized EBITDA to Fixed Charges shall be greater than or
equal to 1.0 to 1.0, (d) on or after the earlier of April 1, 2004 and the date
after the end of the Availability Period on which the Borrower shall have repaid
at least 21.25% of the aggregate principal amount of the Loans that were
outstanding at the end of the Availability Period, the Borrower may make
Restricted Payments at the time that any scheduled interest payment is due in
respect of any Permitted Holdings Debt or

                                      62
<PAGE>

Eligible Parent Debt (and, in the case of Restricted Payments made in respect of
such interest payments on Eligible Parent Debt, Holdings may make Restricted
Payments with the proceeds of any such Restricted Payments received by
Holdings), in an aggregate amount not exceeding the aggregate amount of such
interest payment; provided that (i) at the time of and after giving effect to
any such Restricted Payment, (A) no Default shall have occurred and be
continuing and (B) the ratio of Annualized EBITDA to Fixed Charges shall be
greater than or equal to 1.0 to 1.0, (ii) such Restricted Payments shall be
applied to make such interest payment and (iii) the aggregate amount of
Restricted Payments made in reliance upon this clause (d) shall not exceed
$35,000,000 during any 12-month period, (e) on or after the earlier of June 30,
2005 and the date after the end of the Availability Period on which the Borrower
shall have repaid at least 45% of the aggregate principal amount of the Loans
that were outstanding at the end of the Availability Period, the Borrower may
make Restricted Payments at the time that any scheduled interest payment is due
in respect of any Permitted Holdings Debt or Eligible Parent Debt (and, in the
case of Restricted Payments made in respect of such interest payments on
Eligible Parent Debt, Holdings may make Restricted Payments with the proceeds of
any such Restricted Payments received by Holdings), in an aggregate amount not
exceeding the aggregate amount of such interest payment; provided that (i) at
                                                         --------
the time of and after giving effect to any such Restricted Payment, (A) no
Default shall have occurred and be continuing and (B) the ratio of Annualized
EBITDA to Fixed Charges shall be greater than or equal to 1.2 to 1.0, (ii) such
Restricted Payments shall be applied to make such interest payment and (iii) the
aggregate amount of Restricted Payments made in reliance upon this clause (e)
together with the aggregate amount of Restricted Payments made in reliance upon
clause (d) above shall not exceed $100,000,000 during any 12-month period and
(f) the Borrower and Holdings may make Restricted Payments the proceeds of which
are contemporaneously used to purchase FCC Licenses (either directly as an asset
purchase or as a portion of the consideration for the acquisition of an entity
that owns an FCC License, such portion not to exceed the value of such FCC
License) which are contributed to a License Subsidiary within one Business Day
of the date that such Restricted Payments are made.

               SECTION 6.07. Transactions with Affiliates. (a) Neither Holdings
                             ----------------------------
nor the Borrower will, nor will they permit any Subsidiary Loan Party to, sell,
lease or otherwise transfer any property or assets to, or purchase, lease or
otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except (i) transactions that do not
involve Holdings and are at prices and on terms and conditions not less
favorable to the Borrower or such Subsidiary Loan Party than could be obtained
on an arm's-length basis from unrelated third parties, (ii) transactions between
or among the Borrower and the Subsidiary Loan Parties not involving any other
Affiliate, (iii) any Restricted Payment permitted by Section 6.06, and (iv)
transactions expressly contemplated by the Intercompany Agreements that are
conducted in accordance with the terms of the Intercompany Agreements.

               (b)  Neither Holdings nor the Borrower will, nor will they
permit any Subsidiary Loan Party to, create, incur, assume or permit to exist
any Indebtedness (or any other obligation or liability of the type defined as a
"Subordinated Obligation" in the Subordination Agreement) owing to or for the
benefit of the Parent or any other Affiliate of Holdings, the Borrower or any
Subsidiary Loan Party, unless (i) such Affiliate shall have become a party to
the Subordination Agreement and agreed to subordinate such Indebtedness (or such
other obligation or liability) as provided therein and (ii) in the case of any
such Indebtedness, such Indebtedness is evidenced by one or more promissory

                                      63
<PAGE>

notes or similar instruments that are pledged pursuant to the Pledge Agreement.

               SECTION 6.08. Restrictive Agreements. Neither Holdings nor the
                             -----------------------
Borrower will, nor will they permit any Subsidiary Loan Party to, directly or
indirectly, enter into, incur or permit to exist any agreement or other
arrangement that prohibits, restricts or imposes any condition upon the ability
of any Subsidiary Loan Party to pay dividends or other distributions with
respect to any of its Equity Interests or to make or repay loans or advances to
the Borrower or to Guarantee Indebtedness of the Borrower; provided that (a) the
                                                           --------
foregoing shall not apply to restrictions and conditions imposed by law or by
any Loan Document (or imposed by any agreement governing any other Eligible
Secured Debt) and (b) the foregoing shall not apply to restrictions and
conditions existing on the date hereof identified on Schedule 6.08 (but shall
apply to any extension or renewal of, or any amendment or modification expanding
the scope of, any such restriction or condition).

               SECTION 6.09. Repayment of Indebtedness. The Borrower will
                             --------------------------
not, nor will it permit any Subsidiary Loan Party to, make any Repayment in
respect of, or make any payment in violation of any subordination terms of, any
Indebtedness of the Borrower or any Subsidiary Loan Party except (a) any
Repayment of Indebtedness resulting in a prepayment of Loans pursuant to Section
2.09(d) or (e) and (b) Repayments described in any of the clauses of the proviso
to Section 2.09(d) or (e).

               SECTION 6.10. Intercompany Agreements. Neither Holdings nor the
                             ------------------------
Borrower will, nor will they permit any Subsidiary Loan Party to, enter into any
agreement or arrangement after the date hereof that would constitute an
Intercompany Agreement without the prior written approval of the Required
Lenders.

               SECTION 6.11. Limitation on Sale-Leaseback Transactions. The
                             ------------------------------------------
Borrower will not, nor will it permit any Subsidiary Loan Party to, enter into
any arrangement, directly or indirectly, whereby it shall sell or transfer any
property, real or personal, used or useful in its business, whether now owned or
hereafter acquired, and thereafter rent or lease such property or other property
that it intends to use for substantially the same purpose or purposes as the
property sold or transferred.

               SECTION 6.12. Equipment Site Interests and Real Estate
                             ----------------------------------------
Subsidiaries. The Borrower will not permit any Equipment Site Interests to be
-------------
owned or acquired by any Person other than a Subsidiary that (a) is wholly owned
directly by the Borrower, (b) does not engage in any business or activity other
than the ownership of Equipment Site Interests and activities incidental
thereto, (c) does not own or acquire any assets other than Equipment Site
Interests, cash and Permitted Investments and (d) does not have or incur any
Indebtedness or other liabilities other than liabilities under the Loan
Documents, liabilities imposed by law, including tax liabilities, and other
liabilities incidental to its existence and permitted business and activities
(any such Subsidiary satisfying the foregoing requirements, a "Real Estate
                                                               -----------
Subsidiary"). The Equipment Site Interests relating to all sites in any
----------
particular state shall be owned by a separate Real Estate Subsidiary; provided
                                                                      --------
that if the Equipment Site Interests relating to sites in any particular BTA are
in more than one state, then such Equipment Site Interests may be owned by the
Real Estate Subsidiary that is formed to own Equipment Site Interests in the
state in which a majority of the sites located in such BTA are situated.

               SECTION 6.13. FCC Licenses and License Subsidiaries. The Borrower
                             -------------------------------------

                                      64
<PAGE>

will not permit any FCC License to be owned or acquired by any Person other than
a corporation that (a) is wholly owned directly by the Parent, (b) does not
engage in any business or activity other than the ownership of one or more FCC
Licenses and activities incidental thereto, (c) does not own or acquire any
assets other than one or more FCC Licenses, cash and Permitted Investments and
(d) does not have or incur any Indebtedness or other liabilities other than
liabilities under the Loan Documents, liabilities imposed by law, including tax
liabilities, other liabilities incidental to its existence and permitted
business and activities and FCC Debt or Permitted License Acquisition Debt
incurred to finance the purchase by it of its FCC Licenses (any corporation
satisfying the foregoing requirements, a "License Subsidiary"). Each FCC License
                                          ------------------
that is acquired without being financed with FCC Debt or Permitted License
Acquisition Debt shall be owned by a License Subsidiary that does not have any
liability in respect of any FCC Debt or Permitted License Acquisition Debt. Each
FCC License that is financed with FCC Debt or Permitted License Acquisition Debt
shall be owned by a separate License Subsidiary (which shall be the only Loan
Party liable for such FCC Debt or Permitted License Acquisition Debt), except
that any combination of two or more such FCC Licenses that are acquired
contemporaneously pursuant to the same acquisition may be owned by the same
License Subsidiary if required by the terms of such FCC Debt or Permitted
License Acquisition Debt.

               SECTION 6.14. Amendment of Material Documents. Neither Holdings
                             --------------------------------
nor the Borrower will, nor will they permit any Subsidiary Loan Party to, amend,
modify or waive any of its rights or obligations under (a) any Intercompany
Agreement, (b) its certificate or articles of incorporation, by-laws or other
organizational documents, (c) the ChaseTel Purchase Agreement, (d) the ChaseTel
Credit Agreement or any agreement or instrument securing, guaranteeing or
evidencing any Permitted ChaseTel Financing (other than amendments or
modifications that do not adversely effect any Permitted ChaseTel Financings) or
(e) any agreement or instrument governing or evidencing any Permitted Holdings
Debt, FCC Debt or Eligible Parent Debt.

               SECTION 6.15. Capital Expenditures. The Borrower will not permit
                             ---------------------
the aggregate amount of Capital Expenditures made by the Borrower and its
Subsidiaries in any fiscal year to exceed the amount set forth below with
respect to such fiscal year:

               Year                          Amount
               ----                          ------
               2000                          $ 550,000,000
               2001                          $ 850,000,000
               2002                          $ 110,000,000
               2003                          $ 180,000,000
               2004 and thereafter           $ 100,000,000

               SECTION 6.16. Covered POPS. The Borrower will not permit the
                             -------------
total number of Covered POPS at any time during any period set forth below to be
less than the number set forth below with respect to such period:

Period                                                      Number
------                                                      ------
April 1, 2000 to and including June 30, 2000                275,000

                                      65
<PAGE>

July 1, 2000 to and including September 30, 2000
                                                                 1,150,000

October 1, 2000 to and including December 31, 2000
                                                                 1,150,000

January 1, 2001 to and including March 31, 2001
                                                                 5,000,000

April 1, 2001 to and including June 30, 2001
                                                                 6,000,000

July 1, 2001 to and including September 30, 2001
                                                                 8,000,000

October 1, 2001 to and including December 31, 2001
                                                                15,000,000

January 1, 2002 to and including December 31, 2002
                                                                17,500,000

January 1, 2003 to and including December 31, 2003
                                                                19,800,000

January 1, 2004 to and including December 31, 2004
                                                                20,500,000
January 1, 2005 and thereafter                                  21,000,000

               SECTION 6.17. Subscribers. The Borrower will not permit the total
                             -----------
number of Subscribers at any time during any period set forth below to be less
than the number set forth below opposite such period:

Period                                                                  Number
------                                                                  ------
April 1, 2000 to and including June 30, 2000                            16,500
July 1, 2000 to and including September 30, 2000                        44,000
October 1, 2000 to and including December 31, 2000                      56,000
January 1, 2001 to and including March 31, 2001                        150,000
April 1, 2001 to and including June 30, 2001                           225,000
July 1, 2001 to and including September 30, 2001                       355,000
October 1, 2001 to and including December 31, 2001                     600,000
January 1, 2002 to and including March 31, 2002                      1,050,000
April 1, 2002 to and including June 30, 2002                         1,200,000
July 1, 2002 to and including September 30, 2002                     1,350,000
October 1, 2002 to and including December 31, 2002                   1,550,000
January 1, 2003 to and including March 31, 2003                      1,800,000
April 1, 2003 to and including June 30, 2003                         1,900,000
July 1, 2003 to and including September 30, 2003                     2,000,000
October 1, 2003 to and including December 31, 2003                   2,100,000

                                      66
<PAGE>

January 1, 2004 to and including December 31, 2004                   2,250,000
January 1, 2005 to and including December 31, 2005                   2,550,000
January 1, 2006 and thereafter                                       2,700,000

               SECTION 6.18. Total Indebtedness to Total Capitalization. The
                             -------------------------------------------
Borrower will not permit the ratio of Total Indebtedness to Total Capitalization
at any time during any period set forth below to exceed the ratio set forth
opposite such period:

Period                                                              Ratio
------                                                              -----
Initial Availability Date to and including December 31, 2002      0.67 to 1.0

January 1, 2003 to and including December 31, 2003                0.60 to 1.0

January 1, 2004 and thereafter                                    0.50 to 1.0

               SECTION 6.19. Total Indebtedness to Annualized EBITDA. The
                             ----------------------------------------
Borrower will not permit the ratio of Total Indebtedness to Annualized EBITDA as
of any date during any period set forth below to exceed the ratio set forth
below opposite such period:

Period                                                              Ratio
------                                                              -----
January 1, 2003 to and including March 31, 2003                     10.0 to 1.0

April 1, 2003 to and including June 30, 2003                         7.0 to 1.0

July 1, 2003 to and including September 30, 2003                     7.0 to 1.0

October 1, 2003 to and including December 31, 2003                   5.5 to 1.0

January 1, 2004 and thereafter                                       5.0 to 1.0

               SECTION 6.20. Consolidated EBITDA to Cash Interest Expense. The
                             ---------------------------------------------
Borrower will not permit the ratio of Consolidated EBITDA to Cash Interest
Expense for any period of four consecutive fiscal quarters ending during any
period set forth below to be less than the ratio set forth opposite such period:

Period                                                                 Ratio
------                                                                 -----
October 1, 2002 to and including December 31, 2002                   1.0 to 1.0

January 1, 2003 to and including March 31, 2003                      1.3 to 1.0

April 1, 2003 to and including June 30, 2003                         1.4 to 1.0

July 1, 2003 to and including September 30, 2003                     1.5 to 1.0

October 1, 2003 to and including December 31, 2003                   1.9 to 1.0

January 1, 2004 and thereafter                                       3.0 to 1.0

                                      67
<PAGE>

               SECTION 6.21. Minimum Gross Revenue. (a) The Borrower will not
                             ----------------------
permit the consolidated revenue of the Borrower and the Subsidiary Loan Parties
during any fiscal quarter ending on a date set forth below to be less than the
amount set forth below opposite such date:

Fiscal Quarter Ending                                  Amount
---------------------                                  ------
December 31, 1999                                      $  1,330,000
March 31, 2000                                         $  2,300,000
June 30, 2000                                          $  4,900,000
September 30, 2000                                     $  6,300,000
December 31, 2000                                      $ 17,100,000
March 31, 2001                                         $ 25,000,000
June 30, 2001                                          $ 40,000,000
September 30, 2001                                     $ 70,000,000
December 31, 2001                                      $120,000,000
March 31, 2002                                         $130,000,000
June 30, 2002                                          $150,000,000
September 30, 2002                                     $170,000,000
December 31, 2002                                      $190,000,000
March 31, 2003                                         $205,000,000
June 30, 2003                                          $220,000,000
September 30, 2003                                     $230,000,000
December 31, 2003                                      $250,000,000

               (b)  The Borrower will not permit the consolidated revenue of the
     Borrower and the Subsidiary Loan Parties during any fiscal year ending on a
     date set forth below to be less than the amount set forth below opposite
     such date:

Fiscal Year Ending                                               Amount
------------------                                               ------
December 31, 2004                                           $  1,100,000,000

December 31, 2005                                           $  1,200,000,000

December 31, 2006 and thereafter                            $  1,300,000,000

               SECTION 6.22. Activities of Holdings. Holdings will not engage in
                             -----------------------
any business or activity other than the ownership of all the outstanding Equity
Interests of the Borrower and activities incidental thereto. Holdings will not
own or acquire any assets (other than shares of common stock of the Borrower,
cash and Permitted Investments) or incur any liabilities (other than liabilities
under the Loan Documents, liabilities under any other credit agreement governing
Eligible Secured Debt, liabilities imposed by law, including tax liabilities,
other liabilities incidental to its existence, liabilities in respect of

                                      68
<PAGE>

Permitted Holdings Debt or the ChaseTel Earnout and Guarantees of Eligible
Parent Debt). Holdings will not create, incur, assume or permit to exist any
Lien on any asset now owned or hereafter acquired by it, except Liens created
under the Loan Documents and Permitted Encumbrances.

               SECTION 6.23. Fiscal Year and Fiscal Quarters. The Borrower will
                             --------------------------------
cause all of its fiscal years and fiscal quarters to be the same as the calendar
years and calendar quarters.

               SECTION 6.24. Additional Requirements Regarding Permitted
                             -------------------------------------------
Indebtedness and Liens. Notwithstanding anything to the contrary contained in
-----------------------
Section 6.01, Section 6.02 or elsewhere in this Agreement, the Borrower will
not, nor will it permit any Loan Party to, (a) create, incur, assume or permit
to exist any Indebtedness which is secured by any Lien created, evidenced or
governed by any of the Security Documents other than Eligible Secured Debt and
(b) grant, create or permit to exist any Lien which is created, evidenced or
governed by any of the Security Documents other than Liens securing Eligible
Secured Debt.

                                 ARTICLE VII

                               Events of Default
                               -----------------

               If any of the following events ("Events of Default") shall
                                                -----------------
occur:

               (a)  the Borrower shall fail to pay any principal of any Loan
     when and as the same shall become due and payable, whether at the due date
     thereof or at a date fixed for prepayment thereof or otherwise;

               (b)  the Borrower shall fail to pay any interest on any Loan or
     any fee or any other amount (other than an amount referred to in clause (a)
     of this Article) payable under this Agreement or any other Loan Document,
     when and as the same shall become due and payable, and such failure shall
     continue unremedied for a period of three Business Days;

               (c)  any representation or warranty made or deemed made by or on
     behalf of any Loan Party in or in connection with any Loan Document or any
     amendment or modification thereof or waiver thereunder, or in any report,
     certificate, financial statement or other document furnished pursuant to or
     in connection with any Loan Document or any amendment or modification
     thereof or waiver thereunder, shall prove to have been incorrect in any
     respect when made or deemed made;

               (d)  Holdings or the Borrower shall fail to observe or perform
     any covenant, condition or agreement contained in Section 5.02, 5.04 (with
     respect to the existence of the Borrower) or 5.10 or in Article VI;

               (e)  any Loan Party shall fail to observe or perform any
     covenant, condition or agreement contained in any Loan Document (other than
     those specified in clause (a), (b) or (d) of this Article), and such
     failure shall continue unremedied for a period of 30 days after notice
     thereof from the Administrative Agent to the

                                      69
<PAGE>

     Borrower (which notice will be given at the request of any Lender);

               (f)  any Loan Party shall fail to make any payment (whether of
     principal or interest and regardless of amount) in respect of any Material
     Indebtedness, when and as the same shall become due and payable;

               (g)  any event or condition occurs that results in any Material
     Indebtedness becoming due prior to its scheduled maturity or that enables
     or permits (with or without the giving of notice, the lapse of time or
     both) the holder or holders of any Material Indebtedness or any trustee or
     agent on its or their behalf to cause any Material Indebtedness to become
     due, or to require the prepayment, repurchase, redemption or defeasance
     thereof, prior to its scheduled maturity; provided that this clause (g)
                                               --------
     shall not apply to secured Indebtedness that becomes due as a result of the
     voluntary sale or transfer of the property or assets securing such
     Indebtedness;

               (h)  an involuntary proceeding shall becommenced or an
     involuntary petition shall be filed seeking (i) liquidation, reorganization
     or other relief in respect of any Loan Party or its debts, or of a
     substantial part of its assets, under any Federal, state or foreign
     bankruptcy, insolvency, receivership or similar law now or hereafter in
     effect or (ii) the appointment of a receiver, trustee, custodian,
     sequestrator, conservator or similar official for any Loan Party or for a
     substantial part of its assets, and, in any such case, such proceeding or
     petition shall continue undismissed for 60 days or an order or decree
     approving or ordering any of the foregoing shall be entered;

               (i)  any Loan Party shall (i) voluntarily commence any proceeding
     or file any petition seeking liquidation, reorganization or other relief
     under any Federal, state or foreign bankruptcy, insolvency, receivership or
     similar law now or hereafter in effect, (ii) consent to the institution of,
     or fail to contest in a timely and appropriate manner, any proceeding or
     petition described in clause (h) of this Article, (iii) apply for or
     consent to the appointment of a receiver, trustee, custodian, sequestrator,
     conservator or similar official for any Loan Party or for a substantial
     part of its assets, (iv) file an answer admitting the material allegations
     of a petition filed against it in any such proceeding, (v) make a general
     assignment for the benefit of creditors or (vi) take any action for the
     purpose of effecting any of the foregoing;

               (j)  any Loan Party shall become unable, admit in writing its
     inability or fail generally to pay its debts as they become due;

               (k) one or more judgments for the payment of money in an
     aggregate amount in excess of $1,000,000 shall be rendered against any Loan
     Party or any combination thereof and the same shall remain undischarged for
     a period of 30 consecutive days during which execution shall not be
     effectively stayed, or any action shall be legally taken by a judgment
     creditor to attach or levy upon any assets of any Loan Party to enforce any
     such judgment;

               (l)  an ERISA Event shall have occurred that, in the opinion of
     the Required Lenders, when taken together with all other ERISA Events that
     have occurred, could reasonably be expected to result in liability of the
     Borrower and

                                      70
<PAGE>

          its Subsidiaries in an aggregate amount exceeding (i) $1,000,000 in
          any year or (ii) $5,000,000 for all periods;

               (m)  any Lien purported to be created under any Security Document
          shall cease to be, or shall be asserted by any Loan Party not to be, a
          valid and perfected Lien on any Collateral, with the priority required
          by the applicable Security Document, except (i) as a result of the
          sale or other disposition of the applicable Collateral in a
          transaction permitted under the Loan Documents or (ii) as a result of
          the Collateral Agent's failure to maintain possession of any stock
          certificates, promissory notes or other instruments delivered to it
          under the Pledge Agreements;

               (n)  a Change in Control shall occur;

               (o)  the loss, revocation, suspension or material impairment of
          any material FCC License shall occur; or

               (p)  Lucent shall terminate the Purchase Agreement as a result of
          any default or breach by the Borrower thereunder, or the Borrower
          shall terminate the Purchase Agreement other than by reason of a
          default or breach by Lucent thereunder;

     then, and in every such event (other than an event with respect to the
     Borrower described in clause (h) or (i) of this Article), and at any time
     thereafter during the continuance of such event, the Administrative Agent
     may, and at the request of the Required Lenders shall, by notice to the
     Borrower, take either or both of the following actions, at the same or
     different times: (i) terminate the Commitments, and thereupon the
     Commitments shall terminate immediately, and (ii) declare the Loans then
     outstanding to be due and payable in whole (or in part, in which case any
     principal not so declared to be due and payable may thereafter be declared
     to be due and payable), and thereupon the principal of the Loans so
     declared to be due and payable, together with accrued interest thereon and
     all fees and other obligations of the Borrower accrued hereunder, shall
     become due and payable immediately, without presentment, demand, protest or
     other notice of any kind, all of which are hereby waived by the Borrower;
     and in case of any event with respect to the Borrower described in clause
     (h) or (i) of this Article, the Commitments shall automatically terminate
     and the principal of the Loans then outstanding, together with accrued
     interest thereon and all fees and other obligations of the Borrower accrued
     hereunder, shall automatically become due and payable, without presentment,
     demand, protest or other notice of any kind, all of which are hereby waived
     by the Borrower.

                                 ARTICLE VIII

                                  The Agents
                                  ----------

               Each of the Lenders hereby irrevocably appoints the
     Administrative Agent as its agent and authorizes the Administrative Agent
     to take such actions on its behalf and to exercise such powers as are
     delegated to the Administrative Agent by the terms of the Loan Documents,
     together with such actions and powers as are reasonably incidental thereto.

                                      71
<PAGE>

               Any Person serving as Administrative Agent hereunder shall have
     the same rights and powers in its capacity as a Lender as any other Lender
     and may exercise the same as though it were not the Administrative Agent,
     and such Person and its Affiliates may accept deposits from, lend money to
     and generally engage in any kind of business with the Borrower or any
     Subsidiary or other Affiliate thereof as if it were not the Administrative
     Agent hereunder.

               The Administrative Agent shall not have any duties or obligations
     except those expressly set forth in the Loan Documents. Without limiting
     the generality of the foregoing, (a) the Administrative Agent shall not be
     subject to any fiduciary or other implied duties, regardless of whether a
     Default has occurred and is continuing, (b) the Administrative Agent shall
     not have any duty to take any discretionary action or exercise any
     discretionary powers, except discretionary rights and powers expressly
     contemplated by the Loan Documents that the Administrative Agent is
     required to exercise in writing by the Required Lenders (or such other
     number or percentage of the Lenders as shall be necessary under the
     circumstances as provided in Section 9.02), and (c) except as expressly set
     forth in the Loan Documents, the Administrative Agent shall not have any
     duty to disclose, and shall not be liable for the failure to disclose, any
     information relating to any of the Loan Parties that is communicated to or
     obtained by the Person serving as Administrative Agent or any of its
     Affiliates in any capacity. The Administrative Agent shall not be liable
     for any action taken or not taken by it with the consent or at the request
     of the Required Lenders (or such other number or percentage of the Lenders
     as shall be necessary under the circumstances as provided in Section 9.02)
     or in the absence of its own gross negligence or wilful misconduct. The
     Administrative Agent shall be deemed not to have knowledge of any Default
     unless and until written notice thereof is given to it by the Borrower or a
     Lender, and the Administrative Agent shall not be responsible for or have
     any duty to ascertain or inquire into (i) any statement, warranty or
     representation made in or in connection with any Loan Document, (ii) the
     contents of any certificate, report or other document delivered thereunder
     or in connection therewith, (iii) the performance or observance of any of
     the covenants, agreements or other terms or conditions set forth in any
     Loan Document, (iv) the validity, enforceability, effectiveness or
     genuineness of any Loan Document or any other agreement, instrument or
     document, or (v) the satisfaction of any condition set forth in Article IV
     or elsewhere in any Loan Document, other than to confirm receipt of items
     expressly required to be delivered to the Administrative Agent.

               The Administrative Agent shall be entitled to rely upon, and
     shall not incur any liability for relying upon, any notice, request,
     certificate, consent, statement, instrument, document or other writing
     believed by it to be genuine and to have been signed or sent by the proper
     Person. The Administrative Agent also may rely upon any statement made to
     it orally or by telephone and believed by it to be made by the proper
     Person, and shall not incur any liability for relying thereon. The
     Administrative Agent may consult with legal counsel (who may be counsel for
     the Borrower), independent accountants and other experts selected by it,
     and shall not be liable for any action taken or not taken by it in
     accordance with the advice of any such counsel, accountants or experts.

               The Administrative Agent may perform any and all its duties and
     exercise its rights and powers by or through any one or more sub-agents
     appointed by the Administrative Agent. The Administrative Agent and any
     such sub-agent may perform any and all its duties and exercise its rights
     and powers through their respective Related Parties. The exculpatory
     provisions of the preceding paragraphs shall apply to any such

                                      72
<PAGE>

     sub-agent and to the Related Parties of the Administrative Agent and any
     such sub-agent, and shall apply to their respective activities in
     connection with the syndication of the credit facilities provided for
     herein as well as activities as Administrative Agent.

               Subject to the appointment and acceptance of a successor
     Administrative Agent as provided in this paragraph, the Administrative
     Agent may resign at any time by notifying the Lenders and the Borrower.
     Upon any such resignation, the Required Lenders shall have the right to
     appoint a successor. If no successor shall have been so appointed by the
     Required Lenders and shall have accepted such appointment within 30 days
     after the retiring Administrative Agent gives notice of its resignation,
     then the retiring Administrative Agent may, on behalf of the Lenders,
     appoint a successor Administrative Agent which shall be a bank with an
     office in New York, New York, or an Affiliate of any such bank. Upon the
     acceptance of its appointment as Administrative Agent hereunder by a
     successor, such successor shall succeed to and become vested with all the
     rights, powers, privileges and duties of the retiring Administrative Agent,
     and the retiring Administrative Agent shall be discharged from its duties
     and obligations hereunder. The fees payable by the Borrower to a successor
     Administrative Agent shall be the same as those payable to its predecessor
     unless otherwise agreed between the Borrower and such successor. After the
     Administrative Agent's resignation hereunder, the provisions of this
     Article and Section 9.03 shall continue in effect for the benefit of such
     retiring Administrative Agent, its sub-agents and their respective Related
     Parties in respect of any actions taken or omitted to be taken by any of
     them while it was acting as Administrative Agent.

               Each Lender acknowledges that it has, independently and without
     reliance upon the Administrative Agent or any other Lender and based on
     such documents and information as it has deemed appropriate, made its own
     credit analysis and decision to enter into this Agreement. Each Lender also
     acknowledges that it will, independently and without reliance upon the
     Administrative Agent or any other Lender and based on such documents and
     information as it shall from time to time deem appropriate, continue to
     make its own decisions in taking or not taking action under or based upon
     this Agreement, any other Loan Document or related agreement or any
     document furnished hereunder or thereunder.

               Each Lender acknowledges and agrees to the terms of the
     Collateral Agency Agreement and to the appointment of the Collateral Agent
     to act as collateral agent under the Collateral Agency Agreement and the
     other Security Documents.

                                  ARTICLE IX

                                 Miscellaneous
                                 -------------

               SECTION 9.01. Notices. Except in the case of notices and other
                             -------
     communications expressly permitted to be given by telephone, all notices
     and other communications provided for herein shall be in writing and shall
     be delivered by hand or overnight courier service, mailed by certified or
     registered mail or sent by telecopy, as follows:

               (a)  if to Holdings or the Borrower, to it at 10307 Pacific
          Center Court, San Diego, California 92121, Attention of President
          (Telecopy No. (619) 882-6010);

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<PAGE>

               (b)  if to the Collateral Agent, to it as provided in the
          Collateral Agency Agreement;

               (c)  if to the Administrative Agent, to it at 600 Mountain
          Avenue, Murray Hill, New Jersey 07974, Attention of Assistant
          Treasurer-Project Finance (Telecopy No. (908) 559-1711);

               (d)  if to Lucent, to it at 283 King George Road, Warren, New
          Jersey 07059, Attention of Assistant Treasurer-Project Finance
          (Telecopy No. (908) 559-1711); and

               (e)  if to any other Lender, to it at its address (or telecopy
          number) set forth in its Administrative Questionnaire.

     Any party hereto may change its address or telecopy number for notices and
     other communications hereunder by notice to the other parties hereto. All
     notices and other communications given to any party hereto in accordance
     with the provisions of this Agreement shall be deemed to have been given on
     the date of receipt.

               SECTION 9.02. Waivers; Amendments. (a) No failure or delay by
                             -------------------
     either Agent or any Lender in exercising any right or power hereunder or
     under any other Loan Document shall operate as a waiver thereof, nor shall
     any single or partial exercise of any such right or power, or any
     abandonment or discontinuance of steps to enforce such a right or power,
     preclude any other or further exercise thereof or the exercise of any other
     right or power. The rights and remedies of the Agents and the Lenders
     hereunder and under the other Loan Documents are cumulative and are not
     exclusive of any rights or remedies that they would otherwise have. No
     waiver of any provision of any Loan Document or consent to any departure by
     any Loan Party therefrom shall in any event be effective unless the same
     shall be permitted by paragraph (b) of this Section, and then such waiver
     or consent shall be effective only in the specific instance and for the
     purpose for which given. Without limiting the generality of the foregoing,
     the making of a Loan shall not be construed as a waiver of any Default,
     regardless of whether an Agent or any Lender may have had notice or
     knowledge of such Default at the time.

               (b)  Neither this Agreement nor any other Loan Document nor any
     provision hereof or thereof may be waived, amended or modified except, in
     the case of this Agreement, pursuant to an agreement or agreements in
     writing entered into by Holdings, the Borrower and the Required Lenders or,
     in the case of any other Loan Document, pursuant to an agreement or
     agreements in writing entered into by the applicable Agent and the Loan
     Party or Loan Parties that are parties thereto, in each case with the
     consent of the Required Lenders; provided that no such agreement shall
                                      --------
     (i) increase the Commitment of any Lender without the written consent of
     such Lender, (ii) reduce the principal amount of any Loan or reduce the
     rate of interest on such Loan, or reduce any fees payable hereunder,
     without the written consent of each Lender affected thereby, (iii) postpone
     the scheduled date of payment of the principal amount of any Loan or any
     interest thereon, or any fees payable hereunder, or reduce the amount of,
     waive or excuse any such payment, or postpone the scheduled date of
     expiration of any Commitment, without the written consent of each Lender
     affected thereby, (iv) change Section 2.16(b), (c) or (d) in a manner that
     would alter the pro rata sharing of payments required thereby, without the
     written consent of each Lender, (v) change any of the

                                      74
<PAGE>

     provisions of this Section or the definition of "Required Lenders" or any
     other provision of any Loan Document specifying the number or percentage of
     Lenders required to waive, amend or modify any rights thereunder or make
     any determination or grant any consent thereunder, without the written
     consent of each Lender, (vi) release all or any substantial part of the
     Collateral from the Lien of any Security Document (except as expressly
     provided in such Security Document), without the written consent of each
     Lender, (vii) release Holdings or any Subsidiary Loan Party from its
     Guarantee under the Guarantee Agreement (except as expressly provided in
     the Guarantee Agreement), or limit its liability in respect of such
     Guarantee, (viii) change any provisions of any Security Document in a
     manner that adversely affects the pro rata security of the Loans in
     relation to any other Eligible Secured Debt, without the written consent of
     each Lender or (ix) waive, amend or modify Section 5.10 or any term or
     provision thereof without the prior written consent of Lucent; provided
                                                                    --------
     further that no such agreement shall amend, modify or otherwise affect the
     -------
     rights or duties of either Agent without the prior written consent of such
     Agent.

               SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The
                             ----------------------------------
     Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by
     Lucent and each Agent, including the reasonable fees, charges and
     disbursements of counsel for Lucent or the Agents, in connection with the
     preparation and administration of the Loan Documents or any amendments,
     modifications or waivers thereof (whether or not the transactions
     contemplated hereby are consummated) and (ii) all reasonable out-of-pocket
     expenses incurred by either Agent or any Lender, including the reasonable
     fees, charges and disbursements of any counsel for either Agent or any
     Lender, in connection with the enforcement or protection of its rights or
     remedies in connection with the Loan Documents, including its rights or
     remedies under this Section, or in connection with the Loans made
     hereunder, including all such costs and expenses incurred during any
     workout, restructuring or negotiations in respect of such Loans.

               (b) The Borrower shall indemnify each Agent and each Lender, and
     each Related Party of any of the foregoing Persons (each such Person being
     called an "Indemnitee") against, and hold each Indemnitee harmless from,
                ----------
     any and all losses, claims, damages, liabilities and related expenses,
     including the fees, charges and disbursements of any counsel for any
     Indemnitee, incurred by or asserted against any Indemnitee arising out of,
     in connection with, or as a result of (i) the execution or delivery of any
     Loan Document or any other agreement or instrument contemplated hereby, the
     performance by the parties to the Loan Documents of their respective
     obligations thereunder or the consummation of the Transactions or any other
     transactions contemplated hereby, (ii) any Loan or the use of the proceeds
     therefrom, (iii) any actual or alleged presence or release of Hazardous
     Materials on or from any Mortgaged Property or any other property at any
     time owned or operated by the Borrower or any of its Subsidiaries, or any
     Environmental Liability related in any way to the Borrower or any of its
     Subsidiaries, or (iv) any actual or prospective claim, litigation,
     investigation or proceeding relating to any of the foregoing, whether based
     on contract, tort or any other theory and regardless of whether any
     Indemnitee is a party thereto; provided that such indemnity shall not, as
                                    --------
     to any Indemnitee, be available to the extent that such losses, claims,
     damages, liabilities or related expenses have resulted from the gross
     negligence or wilful misconduct of such Indemnitee.

               (c) To the extent that the Borrower fails to pay any amount
     required to be paid by it to the Administrative Agent under paragraph (a)
     or (b) of this Section, each

                                      75
<PAGE>

     Lender severally agrees to pay to the Administrative Agent such Lender's
     pro rata share (determined as of the time that the applicable unreimbursed
     expense or indemnity payment is sought) of such unpaid amount; provided
                                                                    --------
     that the unreimbursed expense or indemnified loss, claim, damage, liability
     or related expense, as the case may be, was incurred by or asserted against
     the Administrative Agent in its capacity as such. For purposes hereof, a
     Lender's "pro rata share" shall be determined based upon its share of the
     sum of the total outstanding Loans and Commitments at the time.

               (d) To the extent permitted by applicable law, neither Holdings
     nor the Borrower shall assert, and each of them hereby waives, any claim
     against any Indemnitee, on any theory of liability, for special, indirect,
     consequential or punitive damages (as opposed to direct or actual damages)
     arising out of, in connection with, or as a result of, this Agreement or
     any agreement or instrument contemplated hereby, the Transactions, any Loan
     or the use of the proceeds thereof.

               (e) All amounts due under this Section shall be payable not later
     than 30 days after written demand therefor.

               SECTION 9.04. Successors and Assigns. (a) The provisions of
                             ----------------------
     this Agreement shall be binding upon and inure to the benefit of the
     parties hereto and their respective successors and assigns permitted
     hereby, except that the Borrower may not assign or otherwise transfer any
     of its rights or obligations hereunder without the prior written consent of
     each Lender (and any attempted assignment or transfer by the Borrower
     without such consent shall be null and void). Nothing in this Agreement,
     expressed or implied, shall be construed to confer upon any Person (other
     than the parties hereto, their respective successors and assigns permitted
     hereby and, to the extent expressly contemplated hereby, the Related
     Parties of each of the Agents and the Lenders) any legal or equitable
     right, remedy or claim under or by reason of this Agreement.

               (b) Any Lender may assign to one or more assignees all or a
     portion of its rights and obligations under this Agreement (including all
     or a portion of its Commitment and the Loans at the time owing to it);
     provided that (i) except in the case of an assignment to Lucent, a Lender
     --------
     or an Affiliate of Lucent or a Lender, the Administrative Agent must give
     its prior written consent to such assignment (which consent shall not be
     unreasonably withheld or delayed), (ii) in the case of an assignment to a
     competitor of the Borrower or any of its Subsidiaries (or any Affiliate of
     any such competitor) or in the case of an assignment of a Commitment (other
     than such an assignment to an Eligible Assignee), the Borrower must give
     its prior written consent to such assignment (which consent, except in the
     case of an assignment to any such competitor or Affiliate of a competitor,
     shall not be unreasonably withheld or delayed), (iii) except in the case of
     an assignment to Lucent, a Lender or an Affiliate of Lucent or a Lender or
     an assignment of the entire remaining amount of the assigning Lender's
     Commitment and Loans, the amount of the Commitment and Loans of the
     assigning Lender subject to each such assignment (determined as of the date
     the Assignment and Acceptance with respect to such assignment is delivered
     to the Administrative Agent) shall not be less than $5,000,000 unless the
     Borrower otherwise consents (except that this clause shall not prohibit the
     assignment of a Fronting Commitment as contemplated by Section 2.02 in an
     amount greater than or equal to $1,000,000); (iv) each partial assignment
     shall be made as an assignment of a proportionate part of all of the
     assigning Lender's rights and obligations under this Agreement, except that
     this clause (iv) shall not be construed to

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<PAGE>

     prohibit the assignment of a proportionate part of all of the assigning
     Lender's rights and obligations in respect of (A) Loans separately from (or
     without assigning) Commitments, or (B) Commitments separately from (or
     without assigning) Loans, (v) the parties to each assignment shall execute
     and deliver to the Administrative Agent and the Collateral Agent an
     Assignment and Acceptance, together with a processing and recordation fee
     to the Administrative Agent of $3,500, and (vi) the assignee, if it shall
     not be a Lender, shall deliver to the Administrative Agent an
     Administrative Questionnaire; provided further that (A) in the event that
                                   ----------------
     the Borrower has given its consent to the identity of a particular assignee
     of an assignment of loans or commitments in connection with any Other Loan
     Document, then the Borrower shall not unreasonably withhold consent to such
     assignee under clause (ii) of this paragraph, (B) any consent of the
     Borrower otherwise required under clause (iii) of this paragraph shall not
     be unreasonably withheld if and when the Borrower consents to an assignment
     of less than $5,000,000 relating to any Other Loan Document and (C) any
     consent of the Borrower otherwise required under this paragraph shall not
     be required if an Event of Default under clause (h) or (i) of Article VII
     has occurred and is continuing. Subject to acceptance and recording thereof
     pursuant to paragraph (d) of this Section, from and after the effective
     date specified in each Assignment and Acceptance the assignee thereunder
     shall be a party hereto and, to the extent of the interest assigned by such
     Assignment and Acceptance, have the rights and obligations of a Lender
     under this Agreement, and the assigning Lender thereunder shall, to the
     extent of the interest assigned by such Assignment and Acceptance, be
     released from its obligations under this Agreement (and, in the case of an
     Assignment and Acceptance covering all of the assigning Lender's rights and
     obligations under this Agreement, such Lender shall cease to be a party
     hereto but shall continue to be entitled to the benefits of Sections 2.13,
     2.14, 2.15 and 9.03). Any assignment or transfer by a Lender of rights or
     obligations under this Agreement that does not comply with this paragraph
     shall be treated for purposes of this Agreement as a sale by such Lender of
     a participation in such rights and obligations in accordance with paragraph
     (e) of this Section.

                  (c) The Administrative Agent, acting for this purpose as an
     agent of the Borrower, shall maintain at one of its offices a copy of each
     Assignment and Acceptance delivered to it and a register for the
     recordation of the names and addresses of the Lenders, and the Commitments
     of, and principal amount of the Loans owing to, each Lender pursuant to the
     terms hereof from time to time (the "Register"). The Administrative Agent
                                          --------
     shall notify the Borrower whenever any Lender becomes or ceases to be a
     Lucent Lender and whenever any Lender holds or ceases to hold any Lucent
     Loans and shall reflect each Lucent Lender's and each Lucent Loan holder's
     status as such in the Register. The entries in the Register shall be
     conclusive, and the Borrower, the Agents and the Lenders may treat each
     Person whose name is recorded in the Register pursuant to the terms hereof
     as a Lender hereunder for all purposes of this Agreement, notwithstanding
     notice to the contrary. The Register shall be available for inspection by
     the Borrower and any Lender, at any reasonable time and from time to time
     upon reasonable prior notice.

                  (d) Upon its receipt of a duly completed Assignment and
     Acceptance executed by an assigning Lender and an assignee, the assignee's
     completed Administrative Questionnaire (unless the assignee shall already
     be a Lender hereunder), the processing and recordation fee referred to in
     paragraph (b) of this Section and any written consent to such assignment
     required by paragraph (b) of this Section, the Administrative Agent shall
     accept such Assignment and Acceptance and record the

                                      77
<PAGE>

     information contained therein in the Register and, promptly thereafter,
     shall notify the Borrower of such Assignment and Acceptance. No assignment
     shall be effective for purposes of this Agreement unless it has been
     recorded in the Register as provided in this paragraph.

                  (e) Any Lender may, without the consent of the Borrower or the
     Administrative Agent, sell participations to one or more banks or other
     entities (a "Participant") in all or a portion of such Lender's rights and
                  -----------
     obligations under this Agreement (including all or a portion of its
     Commitments and the Loans owing to it); provided that (i) such Lender's
                                             --------
     obligations under this Agreement shall remain unchanged, (ii) such Lender
     shall remain solely responsible to the other parties hereto for the
     performance of such obligations and (iii) the Borrower, the Agents and the
     other Lenders shall continue to deal solely and directly with such Lender
     in connection with such Lender's rights and obligations under this
     Agreement. Any agreement or instrument pursuant to which a Lender sells
     such a participation shall provide that such Lender shall retain the sole
     right to enforce the Loan Documents and to approve any amendment,
     modification or waiver of any provision of the Loan Documents; provided
                                                                    --------
     that such agreement or instrument may provide that such Lender will not,
     without the consent of the Participant, agree to any amendment,
     modification or waiver described in the first proviso to Section 9.02(b)
     that affects such Participant. Subject to paragraph (f) of this Section,
     the Borrower agrees that each Participant shall be entitled to the benefits
     of Sections 2.13, 2.14 and 2.15 to the same extent as if it were a Lender
     and had acquired its interest by assignment pursuant to paragraph (b) of
     this Section. To the extent permitted by law, each Participant also shall
     be entitled to the benefits of Section 9.08 as though it were a Lender,
     provided such Participant agrees to be subject to Section 2.16(d) as though
     it were a Lender.

                  (f) A Participant that would be a Foreign Lender if it were a
     Lender shall not be entitled to the benefits of Section 2.15 unless the
     Borrower is notified of the participation sold to such Participant and such
     Participant agrees, for the benefit of the Borrower, to comply with Section
     2.15(e) as though it were a Lender.

                  (g) Any Lender may at any time pledge or assign a security
     interest in all or any portion of its rights under this Agreement to secure
     obligations of such Lender, including any pledge or assignment to secure
     obligations to a Federal Reserve Bank, and this Section shall not apply to
     any such pledge or assignment of a security interest; provided that no such
                                                           --------
     pledge or assignment of a security interest shall release a Lender from any
     of its obligations hereunder or substitute any such pledgee or assignee for
     such Lender as a party hereto.

                  SECTION 9.05. Survival. All covenants, agreements,
                                --------
     representations and warranties made by the Loan Parties in the Loan
     Documents and in the certificates or other instruments delivered in
     connection with or pursuant to this Agreement or any other Loan Document
     shall be considered to have been relied upon by the other parties hereto
     and shall survive the execution and delivery of the Loan Documents and the
     making of any Loans, regardless of any investigation made by any such other
     party or on its behalf and notwithstanding that either Agent or any Lender
     may have had notice or knowledge of any Default or incorrect representation
     or warranty at the time any credit is extended hereunder, and shall
     continue in full force and effect as long as the principal of or any
     accrued interest on any Loan or any fee or any other amount payable under
     this Agreement is outstanding and unpaid and so long as the Commitments
     have not expired

                                      78
<PAGE>

     or terminated. The provisions of Sections 2.13, 2.14, 2.15 and 9.03 and
     Article VIII shall survive and remain in full force and effect regardless
     of the consummation of the transactions contemplated hereby, the repayment
     of the Loans, the expiration or termination of the Commitments or the
     termination of this Agreement or any provision hereof.

                  SECTION 9.06. Counterparts; Integration; Effectiveness. This
                                ----------------------------------------
     Agreement may be executed in counterparts (and by different parties hereto
     on different counterparts), each of which shall constitute an original, but
     all of which when taken together shall constitute a single contract. This
     Agreement, the other Loan Documents and any separate letter agreements with
     respect to the Borrower's agreement to cooperate with Lucent with respect
     to marketing, selling or syndicating Loans and Commitments or with respect
     to fees payable to Lucent or either Agent constitute the entire contract
     among the parties relating to the subject matter hereof and supersede any
     and all previous agreements and understandings, oral or written, relating
     to the subject matter hereof. Except as provided in Section 4.01, this
     Agreement shall become effective when it shall have been executed by the
     Administrative Agent and when the Administrative Agent shall have received
     counterparts hereof which, when taken together, bear the signatures of each
     of the other parties hereto, and thereafter shall be binding upon and inure
     to the benefit of the parties hereto and their respective successors and
     assigns. Delivery of an executed counterpart of a signature page of this
     Agreement by telecopy shall be effective as delivery of a manually executed
     counterpart of this Agreement.

                  SECTION 9.07. Severability. Any provision of this Agreement
                                ------------
     held to be invalid, illegal or unenforceable in any jurisdiction shall, as
     to such jurisdiction, be ineffective to the extent of such invalidity,
     illegality or unenforceability without affecting the validity, legality and
     enforceability of the remaining provisions hereof; and the invalidity of a
     particular provision in a particular jurisdiction shall not invalidate such
     provision in any other jurisdiction.

                  SECTION 9.08. Right of Setoff. If an Event of Default shall
                                ---------------
     have occurred and be continuing, each Lender and each of its Affiliates is
     hereby authorized at any time and from time to time, to the fullest extent
     permitted by law, to set off and apply any and all deposits (general or
     special, time or demand, provisional or final) at any time held and other
     obligations at any time owing by such Lender or Affiliate to or for the
     credit or the account of the Borrower against any of and all the
     obligations of the Borrower now or hereafter existing under this Agreement
     held by such Lender, irrespective of whether or not such Lender shall have
     made any demand under this Agreement and although such obligations may be
     unmatured. The rights of each Lender under this Section are in addition to
     other rights and remedies (including other rights of setoff) which such
     Lender may have.

                  SECTION 9.09. Governing Law; Jurisdiction; Consent to Service
                                -----------------------------------------------
     of Process. (a) This Agreement shall be construed in accordance with and
     ----------
     governed by the law of the State of New York.

                  (b) Each of Holdings and the Borrower hereby irrevocably and
     unconditionally submits, for itself and its property, to the nonexclusive
     jurisdiction of the Supreme Court of the State of New York sitting in New
     York County and of the United States District Court of the Southern
     District of New York, and any appellate court from any thereof, in any
     action or proceeding arising out of or relating to any Loan Document,

                                      79
<PAGE>

     or for recognition or enforcement of any judgment, and each of the parties
     hereto hereby irrevocably and unconditionally agrees that all claims in
     respect of any such action or proceeding may be heard and determined in
     such New York State or, to the extent permitted by law, in such Federal
     court. Each of the parties hereto agrees that a final judgment in any such
     action or proceeding shall be conclusive and may be enforced in other
     jurisdictions by suit on the judgment or in any other manner provided by
     law. Nothing in this Agreement or any other Loan Document shall affect any
     right that either Agent or any Lender may otherwise have to bring any
     action or proceeding relating to this Agreement or any other Loan Document
     against Holdings or the Borrower or its properties in the courts of any
     jurisdiction.

                  (c) Each of Holdings and the Borrower hereby irrevocably and
     unconditionally waives, to the fullest extent it may legally and
     effectively do so, any objection which it may now or hereafter have to the
     laying of venue of any suit, action or proceeding arising out of or
     relating to this Agreement or any other Loan Document in any court referred
     to in paragraph (b) of this Section. Each of the parties hereto hereby
     irrevocably waives, to the fullest extent permitted by law, the defense of
     an inconvenient forum to the maintenance of such action or proceeding in
     any such court.

                  (d) Each party to this Agreement irrevocably consents to
     service of process in the manner provided for notices in Section 9.01.
     Nothing in this Agreement or any other Loan Document will affect the right
     of any party to this Agreement to serve process in any other manner
     permitted by law.

                  SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
                                --------------------
     WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
     HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY
     ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR
     THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR
     ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE,
     AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
     OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
     SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
     OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY,
     AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

                  SECTION 9.11. Headings. Article and Section headings and the
                                --------
     Table of Contents used herein are for convenience of reference only, are
     not part of this Agreement and shall not affect the construction of, or be
     taken into consideration in interpreting, this Agreement.

                  SECTION 9.12. Confidentiality. Each of the Agents and the
                                ---------------
     Lenders agrees to maintain the confidentiality of the Information (as
     defined below), except that Information may be disclosed (a) to its and its
     Affiliates' directors, officers, employees and agents, including
     accountants, legal counsel and other advisors (it being understood that the
     Persons to whom such disclosure is made will be informed of the
     confidential nature of such Information and instructed to keep such
     Information confidential), (b) to the extent requested by any regulatory
     authority, (c) to the extent required by applicable

                                      80
<PAGE>

     laws or regulations or by any subpoena or similar legal process, (d) to any
     other party to this Agreement, (e) in connection with the exercise of any
     remedies hereunder or any suit, action or proceeding relating to this
     Agreement or any other Loan Document or the enforcement of rights hereunder
     or thereunder, (f) subject to an agreement containing provisions
     substantially the same as those of this Section, to any assignee of or
     Participant in, or any prospective assignee of or Participant in, any of
     its rights or obligations under this Agreement, (g) with the consent of the
     Borrower or (h) to the extent such Information (i) becomes publicly
     available other than as a result of a breach of this Section or (ii)
     becomes available to either Agent or any Lender on a nonconfidential basis
     from a source other than Holdings or the Borrower. For the purposes of this
     Section, "Information" means all information received from Holdings or the
               -----------
     Borrower relating to Holdings or the Borrower or its business, other than
     any such information that is publicly available or available to either
     Agent or any Lender on a nonconfidential basis prior to disclosure by
     Holdings or the Borrower. Any Person required to maintain the
     confidentiality of Information as provided in this Section shall be
     considered to have complied with its obligation to do so if such Person has
     exercised the same degree of care to maintain the confidentiality of such
     Information as such Person would accord to its own confidential
     information.

                  SECTION 9.13. Interest Rate Limitation. Notwithstanding
                                ------------------------
     anything herein to the contrary, if at any time the interest rate
     applicable to any Loan, together with all fees, charges and other amounts
     which are treated as interest on such Loan under applicable law
     (collectively the "Charges"), shall exceed the maximum lawful rate (the
                        -------
     "Maximum Rate") which may be contracted for, charged, taken, received or
      ------------
     reserved by the Lender holding such Loan in accordance with applicable law,
     the rate of interest payable in respect of such Loan hereunder, together
     with all Charges payable in respect thereof, shall be limited to the
     Maximum Rate and, to the extent lawful, the interest and Charges that would
     have been payable in respect of such Loan but were not payable as a result
     of the operation of this Section shall be cumulated and the interest and
     Charges payable to such Lender in respect of other Loans or periods shall
     be increased (but not above the Maximum Rate therefor) until such cumulated
     amount, together with interest thereon at the Federal Funds Effective Rate
     to the date of repayment, shall have been received by such Lender.

                  SECTION 9.14. Amendments to Other Loan Documents. If the
                                ----------------------------------
     Borrower or any other Loan Party in any way (a) amends, modifies or
     supplements any Other Loan Document in any manner that is materially more
     restrictive to any Loan Party or that is materially more beneficial to any
     lender or any agent of any lender or (b) enters into any Other Loan
     Document that is materially more restrictive to any Loan Party or that is
     materially more beneficial to any lender or any agent of any lender, in
     each case as compared to this Agreement and/or the other Loan Documents (as
     applicable), then Holdings and the Borrower agree to promptly notify the
     Administrative Agent in writing of the nature and terms of such amendment,
     modification or supplement or such Other Loan Document (as applicable) and
     to promptly deliver to the Administrative Agent a true, correct and
     complete copy of such amendment, modification or supplement or such Other
     Loan Document (as applicable). Furthermore, if any such amendment,
     modification or supplement or such Other Loan Document (as applicable) is
     reasonably likely to materially disadvantage any Lender with respect to its
     efforts to assign any of its Loans or Commitment, each of Holdings and the
     Borrower agrees that, promptly upon the request of the Administrative Agent
     or the Required Lenders, it (i) will amend, modify or supplement (as
     applicable) the appropriate terms and provisions of this

                                      81
<PAGE>

     Agreement and the other Loan Documents in the same manner as such
     amendment, modification or supplement to such Other Loan Document or (ii)
     in the case of an Other Loan Document newly executed, amend, modify,
     supplement or amend and restate (as applicable) the appropriate terms and
     provisions of this Agreement and the other Loan Documents or (in the case
     of an amendment and restatement) this Agreement and the other Loan
     Documents (as applicable) such that this Agreement and the other Loan
     Documents are consistent with such Other Loan Document (as applicable);
     provided, however, that if such amendment, modification or other supplement
     --------  -------
     to such Other Loan Document or if such newly-executed Other Loan Document
     (as applicable) was made in connection with any consideration given by any
     lender or by any agent of any lender to any Loan Party, then the
     obligations of Holdings and the Borrower to amend, modify, supplement or
     amend and restate this Agreement and the other Loan Documents pursuant to
     this sentence shall be conditioned upon the Lender(s) providing the same or
     equivalent consideration to such Loan Party.

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

                                    CRICKET COMMUNICATIONS HOLDINGS, INC.,

                                    by________________________________
                                       Name:
                                       Title:

                                    CRICKET COMMUNICATIONS, INC.,

                                    by________________________________
                                       Name:
                                       Title:

                                    LUCENT TECHNOLOGIES INC.,
                                    individually and as Administrative Agent,

                                    by________________________________
                                       Name:
                                       Title:

                                    SOCIETE GENERALE,

                                    by________________________________
                                       Name:
                                       Title:

                                      82

<PAGE>

                                                                   SCHEDULE 2.01

                                  Commitments
                                  -----------

                                                  Commitment
                                                  ----------
Lender                                              Amount
------                                              ------

Lucent Technologies Inc.                          $1,136,667,805.94
<PAGE>

EXHIBIT A

                    BORROWER PLEDGE AGREEMENT dated as of September 17, 1999,
           among CRICKET COMMUNICATIONS, INC. a Delaware corporation
           ("Holdings"), CRICKET WIRELESS COMMUNICATIONS, INC., a Delaware
           corporation (the "Borrower"), each subsidiary of the Borrower listed
           on Schedule I hereto (each a "Subsidiary", and, collectively, the
           "Subsidiaries"), each subsidiary of Leap Wireless International,
           Inc., a Delaware corporation (the "Parent") listed on Schedule I
           hereto (each a "License Subsidiary", and, collectively, the "License
           Subsidiaries"; and together with the Subsidiaries, Holdings and the
           Borrower, the "Pledgors") and STATE STREET BANK AND TRUST COMPANY, as
           collateral agent (in such capacity, the "Collateral Agent") for the
           Secured Parties.

   Reference is made to the Collateral Agency and Intercreditor Agreement dated
as of September 17, 1999 (as amended, supplemented or otherwise modified from
time to time, the "Collateral Agency and Intercreditor Agreement") among the
Borrower, the Representatives and Unrepresented Holders referred to therein and
the Collateral Agent. Capitalized terms used herein and not defined herein shall
have the meanings assigned to such terms in the Collateral Agency and
Intercreditor Agreement. Each Pledgor acknowledges receipt of a true and correct
copy of the Collateral Agency and Intercreditor Agreement and agrees to the
terms thereof.

   The Lenders have agreed to make Loans to the Borrower pursuant to, and upon
the terms and subject to the conditions specified in, the Credit Agreement. The
obligations of the Lenders to make Loans are conditioned upon, among other
things, the execution and delivery by the Pledgors of a Pledge Agreement in the
form hereof. The Borrower may from time to time incur Permitted Additional
Obligations that are required to be secured pursuant to the terms hereof.

   Accordingly, the Pledgors and the Collateral Agent, on behalf of itself and
each Secured Party (and each of their respective successors or assigns), hereby
agree as follows:

   SECTION 1.  Pledge.  As security for the payment and performance, as the case
may be, in full of the Obligations, each Pledgor hereby transfers, grants,
bargains, sells,
<PAGE>

2

conveys, hypothecates, pledges, sets over and delivers unto the Collateral
Agent, its successors and assigns, and hereby grants to the Collateral Agent,
its successors and assigns, for the ratable benefit of the Secured Parties, a
security interest in all of such Pledgor's right, title and interest in, to and
under (a) all shares of capital stock, membership interests or other equity
interests owned by it, all of which are listed on Schedule II hereto, and any
shares of capital stock, membership interests or other equity interests obtained
in the future by the Pledgor and the certificates representing all such shares,
membership interests or other equity interests (collectively, the "Pledged
Stock"); provided that the pledged interests shall not include to the extent
that applicable law requires that a subsidiary of the Pledgor issue directors'
qualifying shares, such qualifying shares; (b)(i) all debt securities owned by
it, all of which are listed opposite the name of the Pledgor on Schedule II
hereto, (ii) any debt securities in the future issued to the Pledgor and (iii)
the promissory notes and any other instruments evidencing such debt securities
(the "Pledged Debt Securities"); (c) all other property that may be delivered to
and held by the Collateral Agent pursuant to the terms hereof; (d) subject to
Section 5, all payments of principal or interest, dividends, cash, instruments
and other property from time to time received, receivable or otherwise
distributed, in respect of, in exchange for or upon the conversion of the
securities referred to in clauses (a) and (b) above; (e) subject to Section 5,
all rights and privileges of the Pledgor with respect to the securities and
other property referred to in clauses (a), (b), (c) and (d) above; and (f) all
proceeds of any of the foregoing (the items referred to in clauses (a) through
(f) above being collectively referred to as the "Collateral"). Upon delivery to
the Collateral Agent, (a) any stock certificates, notes or other securities now
or hereafter included in the Collateral (the "Pledged Securities") shall be
accompanied by stock powers duly executed in blank or other instruments of
transfer satisfactory to the Collateral Agent and by such other instruments and
documents as the Collateral Agent may reasonably request in order to give effect
to the pledge granted hereby and (b) all other property comprising part of the
Collateral shall be accompanied by proper instruments of assignment duly
executed by the applicable Pledgor and such other instruments or documents as
the Collateral Agent may
<PAGE>

3

reasonably request in order to give effect to the pledge granted hereby. Each
delivery of Pledged Securities shall be accompanied by a schedule describing the
securities theretofore and then being pledged hereunder, which schedule shall be
attached hereto as Schedule II and made a part hereof. Each schedule so
delivered shall supersede any prior schedules so delivered.

   TO HAVE AND TO HOLD the Collateral, together with all right, title, interest,
powers, privileges and preferences pertaining or incidental thereto, unto the
Collateral Agent, its successors and assigns, for the ratable benefit of the
Secured Parties, forever; subject, however, to the terms, covenants and
conditions hereinafter set forth.

   SECTION 2. Delivery of the Collateral. (a) Each Pledgor agrees promptly to
deliver or cause to be delivered to the Collateral Agent any and all Pledged
Securities, and any and all certificates or other instruments or documents
representing the Collateral.

   (b) Each Pledgor will cause any Indebtedness for borrowed money owed to the
Pledgor by any Person to be evidenced by a duly executed promissory note, bond,
debenture or similar instrument that is pledged and delivered to the Collateral
Agent pursuant to the terms thereof.

   SECTION 3. Representations, Warranties and Covenants. Each Pledgor hereby
represents, warrants and covenants, as to itself and the Collateral pledged by
it hereunder, to and with the Collateral Agent that as of the Effective Date:

       (a) the Pledged Stock represents that percentage as set forth
   on Schedule II of the issued and outstanding shares of each class of
   the capital stock of the issuer with respect thereto;

       (b) except for the security interest granted hereunder, the
   Pledgor (i) is and will at all times continue to be the direct owner,
   beneficially and of record, of the Pledged Securities indicated on
   Schedule
<PAGE>

4

   II, (ii) holds the same free and clear of all Liens, (iii) will make no
   assignment, pledge, hypothecation or transfer of, or create or permit
   to exist any security interest in or other Lien on, the Collateral,
   other than pursuant hereto, and (iv) subject to Section 5, will cause
   any and all Collateral, whether for value paid by the Pledgor or
   otherwise, to be forthwith deposited with the Collateral Agent and
   pledged or assigned hereunder;

       (c) the Pledgor (i) has the power and authority to pledge the
   Collateral in the manner hereby done or contemplated and (ii) will
   defend its title or interest thereto or therein against any and all
   Liens (other than the Lien created by this Agreement), however arising,
   of all Persons whomsoever;

       (d) except for such consents and approvals as have been
   obtained and are in full force and effect, no consent of any other
   Person (including stockholders or creditors of any Pledgor) and no
   consent or approval of any Governmental Authority or any securities
   exchange was or is necessary to the validity of the pledge effected
   hereby;

       (e) by virtue of the execution and delivery by the Pledgors of
   this Agreement, when the Pledged Securities, certificates or other
   documents representing or evidencing the Collateral are delivered to,
   and continue to be in the possession of, the Collateral Agent in
   accordance with this Agreement, the Collateral Agent will have a valid
   and perfected first lien upon and security interest in such Pledged
   Securities as security for the payment and performance of the
   Obligations;

       (f) the pledge effected hereby is effective to vest in the
   Collateral Agent, on behalf of the Secured Parties, the rights of the
   Collateral Agent in the Collateral as set forth herein;

       (g) all of the Pledged Stock has been duly authorized and
   validly issued and is fully paid and nonassessable;
<PAGE>

5

       (h) all information set forth herein relating to the Pledged
   Stock is accurate and complete in all material respects as of the date
   hereof; and

       (i) the pledge of the Pledged Stock pursuant to this Agreement
   does not violate Regulation U or X of the Federal Reserve Board or any
   successor thereto as of the date hereof.

   SECTION 4. Registration in Nominee Name; Denominations. The Collateral Agent,
on behalf of the Secured Parties, shall have the right (in its sole and absolute
discretion) to hold the Pledged Securities in its own name as pledgee, the name
of its nominee (as pledgee or as sub-agent) or the name of the Pledgors,
endorsed or assigned in blank or in favor of the Collateral Agent. Each Pledgor
will promptly give to the Collateral Agent copies of any material notices or
other communications received by it with respect to Pledged Securities
registered in the name of such Pledgor. The Collateral Agent shall at all times
have the right to exchange the certificates representing Pledged Securities for
certificates of smaller or larger denominations for any purpose consistent with
this Agreement.

   SECTION 5. Voting Rights; Dividends and Interest, etc. (a) Unless a Notice of
Enforcement is in effect:

       (i) Each Pledgor shall be entitled to exercise any and all
   voting and/or other consensual rights and powers inuring to an owner of
   Pledged Securities or any part thereof for any purpose consistent with
   the terms of this Agreement, the other Support Documents and the
   Secured Instruments; provided, however, that such Pledgor will not be
   entitled to exercise any such right if the result thereof could
   materially and adversely affect the rights inuring to a holder of the
   Pledged Securities or the rights and remedies of any of the Secured
   Parties under this Agreement or any other Support Document or any
   Secured Instrument or the ability of the Secured Parties to exercise
   the same.
<PAGE>

6

       (ii)  The Collateral Agent shall execute and deliver to each
   Pledgor, or cause to be executed and delivered to each Pledgor, all
   such proxies, powers of attorney and other instruments as such Pledgor
   may reasonably request for the purpose of enabling such Pledgor to
   exercise the voting and/or consensual rights and powers it is entitled
   to exercise pursuant to subparagraph (i) above and to receive the cash
   dividends it is entitled to receive pursuant to subparagraph (iii)
   below.

       (iii) Each Pledgor shall be entitled to receive and retain any
   and all cash dividends, interest and principal paid on the Pledged
   Securities to the extent and only to the extent that such cash
   dividends, interest and principal are permitted by, and otherwise paid
   in accordance with, the terms and conditions of the Support Documents,
   the Secured Instruments and applicable laws. While a Notice of
   Enforcement is in effect, all noncash dividends, interest and
   principal, and all dividends, interest and principal paid or payable in
   cash or otherwise in connection with a partial or total liquidation or
   dissolution, return of capital, capital surplus or paid-in surplus, and
   all other distributions (other than distributions referred to in the
   preceding sentence) made on or in respect of the Pledged Securities,
   whether paid or payable in cash or otherwise, whether resulting from a
   subdivision, combination or reclassification of the outstanding capital
   stock of the issuer of any Pledged Securities or received in exchange
   for Pledged Securities or any part thereof, or in redemption thereof,
   or as a result of any merger, consolidation, acquisition or other
   exchange of assets to which such issuer may be a party or otherwise,
   shall be and become part of the Collateral, and, if received by any
   Pledgor, shall not be commingled by such Pledgor with any of its other
   funds or property but shall be held separate and apart therefrom, shall
   be held in trust for the benefit of the Collateral Agent and shall be
   forthwith delivered to the Collateral Agent in the same form as so
   received (with any necessary endorsement).

   (b) While a Notice of Enforcement is in effect, all rights of any Pledgor to
dividends, interest or principal
<PAGE>

7

that such Pledgor is authorized to receive pursuant to paragraph (a)(iii) above
shall cease, and all such rights shall thereupon become vested in the Collateral
Agent, which shall have the sole and exclusive right and authority to receive
and retain such dividends, interest or principal. All dividends, interest or
principal received by the Pledgor contrary to the provisions of this Section 5
shall be held in trust for the benefit of the Collateral Agent, shall be
segregated from other property or funds of such Pledgor and shall be forthwith
delivered to the Collateral Agent upon demand in the same form as so received
(with any necessary endorsement). Any and all money and other property paid over
to or received by the Collateral Agent pursuant to the provisions of this
paragraph (b) shall be retained by the Collateral Agent in the Enforcement
Collateral Account upon receipt of such money or other property and shall be
applied in accordance with the provisions of Section 7. After a Notice of
Enforcement has been rescinded in accordance with the terms of the Collateral
Agency and Intercreditor Agreement, the Collateral Agent shall, within five
Business Days after all such Notices of Enforcement have been rescinded, repay
to each Pledgor all cash dividends, interest or principal (without interest),
that such Pledgor would otherwise be permitted to retain pursuant to the terms
of paragraph (a)(iii) above and which remain in the Enforcement Collateral
Account.

   (c) While a Notice of Enforcement is in effect, rights of any Pledgor to
exercise the voting and consensual rights and powers it is entitled to exercise
pursuant to paragraph (a)(i) of this Section 5, and the obligations of the
Collateral Agent under paragraph (a)(ii) of this Section 5, shall cease, and all
such rights shall thereupon become vested in the Collateral Agent, which shall
have the sole and exclusive right and authority to exercise such voting and
consensual rights and powers in a manner not inconsistent with the terms of this
Agreement, provided that, unless otherwise directed by the Required Secured
Parties, the Collateral Agent shall have the right from time to time while a
Notice of Enforcement is in effect to permit the Pledgors to exercise such
rights. After all Notices of Enforcement have been rescinded in accordance with
the terms
<PAGE>

8

of the Collateral Agency and Intercreditor Agreement, such Pledgor will have the
right to exercise the voting and consensual rights and powers that it would
otherwise be entitled to exercise pursuant to the terms of paragraph (a)(i)
above.

   SECTION 6. Remedies upon Default. While a Notice of Enforcement is in effect,
subject to applicable regulatory and legal requirements, the Collateral Agent
may sell the Collateral, or any part thereof, at public or private sale or at
any broker's board or on any securities exchange, for cash, upon credit or for
future delivery as the Collateral Agent shall deem appropriate subject to
applicable law and standards of commercial reasonableness. The Collateral Agent
shall be authorized at any such sale (if it deems it advisable to do so) to
restrict the prospective bidders or purchasers to Persons who will represent and
agree that they are purchasing the Collateral for their own account for
investment and not with a view to the distribution or sale thereof, and upon
consummation of any such sale the Collateral Agent shall have the right to
assign, transfer and deliver to the purchaser or purchasers thereof the
Collateral so sold. Each such purchaser at any such sale shall hold the property
sold absolutely free from any claim or right on the part of any Pledgor, and, to
the extent permitted by applicable law, the Pledgors hereby waive all rights of
redemption, stay, valuation and appraisal any Pledgor now has or may at any time
in the future have under any rule of law or statute now existing or hereafter
enacted.

   The Collateral Agent shall give a Pledgor 10 days' prior written notice
(which each Pledgor agrees is reasonable notice within the meaning of Section 9-
504(3) of the Uniform Commercial Code as in effect in the State of New York or
its equivalent in other jurisdictions) of the Collateral Agent's intention to
make any sale of such Pledgor's Collateral. Such notice, in the case of a public
sale, shall state the time and place for such sale and, in the case of a sale at
a broker's board or on a securities exchange, shall state the board or exchange
at which such sale is to be made and the day on which the Collateral, or portion
thereof, will first be offered for sale at such board or exchange. Any such
public sale shall be held at such time or times within ordinary business hours
and at
<PAGE>

9

such place or places as the Collateral Agent may fix and state in the notice of
such sale. At any such sale, the Collateral, or portion thereof, to be sold may
be sold in one lot as an entirety or in separate parcels, as the Collateral
Agent may (in its sole and absolute discretion) determine. The Collateral Agent
shall not be obligated to make any sale of any Collateral if it shall determine
not to do so, regardless of the fact that notice of sale of such Collateral
shall have been given. The Collateral Agent may, without notice or publication,
adjourn any public or private sale or cause the same to be adjourned from time
to time by announcement at the time and place fixed for sale, and such sale may,
without further notice, be made at the time and place to which the same was so
adjourned. In case any sale of all or any part of the Collateral is made on
credit or for future delivery, the Collateral so sold may be retained by the
Collateral Agent until the sale price is paid in full by the purchaser or
purchasers thereof, but the Collateral Agent shall not incur any liability in
case any such purchaser or purchasers shall fail to take up and pay for the
Collateral so sold and, in case of any such failure, such Collateral may be sold
again upon like notice. Subject to Section 9.05 of the Collateral Agency and
Intercreditor Agreement, at any public (or, to the extent permitted by
applicable law, private) sale made pursuant to this Section 6, any Secured Party
may bid for or purchase, free from any right of redemption, stay or appraisal on
the part of any Pledgor (all said rights being also hereby waived and released),
the Collateral or any part thereof offered for sale. For purposes hereof, (a) a
written agreement to purchase the Collateral or any portion thereof shall be
treated as a sale thereof, (b) the Collateral Agent shall be free to carry out
such sale pursuant to such agreement and (c) such Pledgor shall not be entitled
to the return of the Collateral or any portion thereof subject thereto,
notwithstanding the fact that after the Collateral Agent shall have entered into
such an agreement the applicable Notice of Enforcement shall have been rescinded
in accordance with the terms of the Collateral Agency and Intercreditor
Agreement and the Obligations paid in full. As an alternative to exercising the
power of sale herein conferred upon it, the Collateral Agent may proceed by a
<PAGE>

10

suit or suits at law or in equity to foreclose upon the Collateral and to sell
the Collateral or any portion thereof pursuant to a judgment or decree of a
court or courts having competent jurisdiction or pursuant to a proceeding by a
court-appointed receiver. Any sale pursuant to the provisions of this Section 6
shall be deemed to conform to the commercially reasonable standards as provided
in Section 9-504(3) of the Uniform Commercial Code as in effect in the State of
New York or its equivalent in other jurisdictions.

   SECTION 7. Application of Proceeds of Sale. The proceeds of any sale of
Collateral pursuant to Section 6, as well as any Collateral consisting of cash,
shall be applied promptly by the Collateral Agent after receipt thereof as
provided in the Collateral Agency and Intercreditor Agreement.

   Upon any sale of the Collateral by the Collateral Agent (including pursuant
to a power of sale granted by statute or under a judicial proceeding), the
receipt of the purchase money by the Collateral Agent or of the officer making
the sale shall be a sufficient discharge to the purchaser or purchasers of the
Collateral so sold and such purchaser or purchasers shall not be obligated to
see to the application of any part of the purchase money paid over to the
Collateral Agent or such officer or be answerable in any way for the
misapplication thereof.

   SECTION 8. Reimbursement of Collateral Agent. (a) Each Pledgor agrees to pay
upon demand to the Collateral Agent the amount of any and all reasonable
expenses, including the reasonable fees, other charges and disbursements of its
counsel and of any experts or agents, that the Collateral Agent may incur in
connection with (i) the administration of this Agreement, (ii) the custody or
preservation of, or the sale of, collection from, or other realization upon, any
of the Collateral, (iii) the exercise or enforcement of any of the rights of the
Collateral Agent hereunder or (iv) the failure by such Pledgor to perform or
observe any of the provisions hereof.
<PAGE>

11

   (b) Without limitation of its indemnification obligations under the other
Support Documents, each Pledgor agrees to indemnify the Collateral Agent and the
other Indemnitees against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including reasonable
counsel fees, other charges and disbursements, incurred by or asserted against
any Indemnitee arising out of, in any way connected with, or as a result of (i)
the execution or delivery of this Agreement or any other Support Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations thereunder or the consummation of
the transactions contemplated hereby or (ii) any claim, litigation,
investigation or proceeding relating to any of the foregoing, whether or not any
Indemnitee is a party thereto, provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses have resulted from the gross negligence or
wilful misconduct of such Indemnitee.

   (c) Any amounts payable as provided hereunder shall be additional Obligations
secured hereby and by the other Security Documents. The provisions of this
Section 8 shall remain operative and in full force and effect regardless of the
termination of this Agreement or any other Support Document or any Secured
Instrument, the consummation of the transactions contemplated hereby, the
repayment of any of the Obligations, the invalidity or unenforceability of any
term or provision of this Agreement or any other Support Document or any Secured
Instrument or any investigation made by or on behalf of the Collateral Agent or
any other Secured Party. All amounts due under this Section 8 shall be payable
on written demand therefor and, if not paid within five Business Days after
written demand for payment is received by a Pledgor from the Collateral Agent,
shall bear interest at the rate specified in Section 2.11(c) of the Credit
Agreement.

   (d) To the extent that the Pledgors fail to pay any amount required to be
paid by them to the Collateral Agent under paragraph (a) or (b) of this Section,
each Secured Party severally agrees to pay to the Collateral Agent such Secured
Party's pro rata share (determined as of the time that the applicable
unreimbursed expense or indemnity
<PAGE>

12

payment is sought) of such unpaid amount; provided that the unreimbursed expense
or indemnified loss, claim, damaged, liability or related expense, as the case
may be, was incurred by or asserted against the Collateral Agent in its capacity
as such. For purposes hereof, a Secured Party's "pro rata share" shall be
determined based upon its share of the sum of the total outstanding loans and
unused commitments under the Secured Instruments at the time.

   SECTION 9. Collateral Agent Appointed Attorney-in-Fact. Each Pledgor hereby
appoints the Collateral Agent, effective while a Notice of Enforcement is in
effect, the attorney-in-fact of such Pledgor for the purpose of carrying out the
provisions of this Agreement and taking any action and executing any instrument
that the Collateral Agent may deem necessary or advisable to accomplish the
purposes hereof, which appointment is irrevocable and coupled with an interest.
Without limiting the generality of the foregoing, the Collateral Agent shall
have the right, while a Notice of Enforcement is in effect, with full power of
substitution either in the Collateral Agent's name or in the name of such
Pledgor, to ask for, demand, sue for, collect, receive and give acquittance for
any and all moneys due or to become due under and by virtue of any Collateral,
to endorse checks, drafts, orders and other instruments for the payment of money
payable to the Pledgor representing any interest or dividend or other
distribution payable in respect of the Collateral or any part thereof or on
account thereof and to give full discharge for the same, to settle, compromise,
prosecute or defend any action, claim or proceeding with respect thereto, and to
sell, assign, endorse, pledge, transfer and to make any agreement respecting, or
otherwise deal with, the same, in each case in a manner not inconsistent with
the terms of this Agreement; provided, however, that nothing herein contained
shall be construed as requiring or obligating the Collateral Agent to make any
commitment or to make any inquiry as to the nature or sufficiency of any payment
received by the Collateral Agent, or to present or file any claim or notice, or
to take any action with respect to the Collateral or any part thereof or the
moneys due or to become due in respect thereof or any property covered
<PAGE>

13

thereby. The Collateral Agent and the other Secured Parties shall be accountable
only for amounts actually received as a result of the exercise of the powers
granted to them herein, and neither they nor their officers, directors,
employees or agents shall be responsible to any Pledgor for any act or failure
to act hereunder, except for their own gross negligence or wilful misconduct.

   SECTION 10. Waivers; Amendment. (a) No failure or delay of the Collateral
Agent in exercising any power or right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Collateral Agent hereunder and of
the Collateral Agent and the other Secured Parties under the other Support
Documents and the Secured Instruments are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any
provisions of this Agreement or consent to any departure by any Pledgor
therefrom shall in any event be effective unless the same shall be permitted by
paragraph (b) below, and then such waiver or consent shall be effective only in
the specific instance and for the purpose for which given. No notice or demand
on any Pledgor in any case shall entitle such Pledgor to any other or further
notice or demand in similar or other circumstances.

   (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into between the
Collateral Agent and the Pledgor or Pledgors with respect to which such waiver,
amendment or modification is to apply, subject to any consent required in
accordance with Section 11.02 of the Collateral Agency and Intercreditor
Agreement.

   SECTION 11. Securities Act, etc. In view of the position of the Pledgors in
relation to the Pledged Securities, or because of other current or future
circumstances, a question may arise under the Securities Act of 1933, as now or
hereafter in effect, or any similar statute hereafter enacted analogous in
purpose or effect (such Act and any such similar statute as from time to time in
effect being called the "Federal Securities Laws") with
<PAGE>

14

respect to any disposition of the Pledged Securities permitted hereunder. Each
Pledgor understands that compliance with the Federal Securities Laws might very
strictly limit the course of conduct of the Collateral Agent if the Collateral
Agent were to attempt to dispose of all or any part of the Pledged Securities,
and might also limit the extent to which or the manner in which any subsequent
transferee of any Pledged Securities could dispose of the same. Similarly, there
may be other legal restrictions or limitations affecting the Collateral Agent in
any attempt to dispose of all or part of the Pledged Securities under applicable
Blue Sky or other state securities laws or similar laws analogous in purpose or
effect. Each Pledgor recognizes that in light of such restrictions and
limitations the Collateral Agent may, with respect to any sale of the Pledged
Securities, limit the purchasers to those who will agree, among other things, to
acquire such Pledged Securities for their own account, for investment, and not
with a view to the distribution or resale thereof. Each Pledgor acknowledges and
agrees that in light of such restrictions and limitations, the Collateral Agent,
in its sole and absolute discretion, (a) may proceed to make such a sale whether
or not a registration statement for the purpose of registering such Pledged
Securities or part thereof shall have been filed under the Federal Securities
Laws and (b) may approach and negotiate with a single potential purchaser to
effect such sale. Each Pledgor acknowledges and agrees that any such sale might
result in prices and other terms less favorable to the seller than if such sale
were a public sale without such restrictions. In the event of any such sale, the
Collateral Agent shall incur no responsibility or liability for selling all or
any part of the Pledged Securities at a price that the Collateral Agent, in its
sole and absolute discretion, may in good faith deem reasonable under the
circumstances, notwithstanding the possibility that a substantially higher price
might have been realized if the sale were deferred until after registration as
aforesaid or if more than a single purchaser were approached. The provisions of
this Section 11 will apply notwithstanding the existence of a public or private
market upon which the quotations or sales prices may exceed substantially the
price at which the Collateral Agent sells.
<PAGE>

15

   SECTION 12. Security Interest Absolute. All rights of the Collateral Agent
hereunder, the grant of a security interest in the Collateral and all
obligations of each Pledgor hereunder, shall be absolute and unconditional
irrespective of (a) any lack of validity or enforceability of any Support
Document or Secured Instrument, any agreement with respect to any of the
Obligations or any other agreement or instrument relating to any of the
foregoing, (b) any change in the time, manner or place of payment of, or in any
other term of, all or any of the Obligations, or any other amendment or waiver
of or any consent to any departure from any Support Document or Secured
Instrument or any other agreement or instrument relating to any of the
foregoing, (c) any exchange, release or nonperfection of any other collateral,
or any release or amendment or waiver of or consent to or departure from any
guaranty, for all or any of the Obligations or (d) any other circumstance that
might otherwise constitute a defense available to, or a discharge of, any
Pledgor in respect of the Obligations or in respect of this Agreement (other
than the indefeasible payment in full of all the Obligations).

   SECTION 13. Termination or Release. (a) This Agreement and the security
interests granted hereby shall terminate when all the Obligations have been
indefeasibly paid in full and all Secured Instrument Commitments shall have
terminated.

   (b) Subject to Section 9.03 of the Collateral Agency and Intercreditor
Agreement, upon any sale or other transfer by any Pledgor of any Collateral that
does not violate any Secured Instrument to any Person that is not a Pledgor, the
security interest in such Collateral shall be automatically released.

   (c) In connection with any termination or release pursuant to paragraph (a)
or (b), the Collateral Agent shall execute and deliver to any Pledgor, at such
Pledgor's expense, all documents that such Pledgor shall reasonably request to
evidence such termination or release. Any execution and delivery of documents
pursuant to this Section 13 shall be without recourse to or warranty by the
Collateral Agent.
<PAGE>

16

   SECTION 14. Notices. All communications and notices hereunder shall be in
writing and given as provided in Section 11.01 of the Collateral Agency and
Intercreditor Agreement. All communications and notices hereunder to any
Subsidiary Loan Party shall be given to it in care of the Borrower at the
address set forth in the Credit Agreement.

   SECTION 15. Further Assurances. Each Pledgor agrees to do such further acts
and things, and to execute and deliver such additional conveyances, assignments,
agreements and instruments, as the Collateral Agent may at any time reasonably
request in connection with the administration and enforcement of this Agreement
or with respect to the Collateral or any part thereof or in order better to
assure and confirm unto the Collateral Agent its rights and remedies hereunder.

   SECTION 16. Binding Effect; Several Agreement; Assignments. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the successors and assigns of such party; and all covenants,
promises and agreements by or on behalf of any Pledgor that are contained in
this Agreement shall bind and inure to the benefit of its successors and
assigns. This Agreement shall become effective as to any Pledgor when a
counterpart hereof executed on behalf of such Pledgor shall have been delivered
to the Collateral Agent and a counterpart hereof shall have been executed on
behalf of the Collateral Agent, and thereafter shall be binding upon such
Pledgor and the Collateral Agent and their respective successors and assigns,
and shall inure to the benefit of such Pledgor, the Collateral Agent and the
other Secured Parties, and their respective successors and assigns, except that
no Pledgor shall have the right to assign its rights hereunder or any interest
herein or in the Collateral (and any such attempted assignment shall be void),
except as expressly contemplated by this Agreement or the other Support
Documents. Subject to Section 9.03 of the Collateral Agency and Intercreditor
Agreement, if all of the capital stock of a Pledgor is sold, transferred or
otherwise disposed of to a Person that is not a Pledgor pursuant to a
transaction that does not violate any Secured Instrument, such Pledgor shall be
released from its obligations under this Agreement without further action. This
Agreement shall be construed as a separate agreement with respect to each
<PAGE>

17

Pledgor and may be amended, modified, supplemented, waived or released with
respect to any Pledgor without the approval of any other Pledgor and without
affecting the obligations of any other Pledgor hereunder.

   SECTION 17. Survival of Agreement; Severability. (a) All covenants,
agreements, representations and warranties made by each Pledgor herein and in
the certificates or other instruments prepared or delivered in connection with
or pursuant to this Agreement or any other Support Document shall be considered
to have been relied upon by the Collateral Agent and the other Secured Parties
and shall survive the extension of credit by any Secured Party pursuant to a
Secured Instrument, regardless of any investigation made by the Secured Parties
or on their behalf, and shall continue in full force and effect until this
Agreement shall terminate.

   (b) In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby (it being understood
that the invalidity of a particular provision in a particular jurisdiction shall
not in and of itself affect the validity of such provision in any other
jurisdiction). The parties shall endeavor in good-faith negotiations to replace
the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

   SECTION 18. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

   SECTION 19. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute a single contract, and shall become effective
as provided in Section 16. Delivery of an executed counterpart of a signature
page to this Agreement
<PAGE>

18

by facsimile transmission shall be as effective as delivery of a manually
executed counterpart of this Agreement.

   SECTION 20. Rules of Interpretation. The rules of interpretation specified in
Section 1.02 of the Collateral Agency and Intercreditor Agreement shall be
applicable to this Agreement. Section headings used herein are for convenience
of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting this
Agreement.

   SECTION 21. Jurisdiction; Consent to Service of Process. (a) Each Pledgor
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the
Southern District of New York, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement or any other
Support Document, or for recognition or enforcement of any judgment, and each of
the parties hereto hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court. Each
of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Support Document shall affect any right that the
Collateral Agent or any other Secured Party may otherwise have to bring any
action or proceeding relating to this Agreement or any other Loan Document
against any Pledgor or its properties in the courts of any jurisdiction.

   (b) Each Pledgor hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or any other Support Document in
any New York State or Federal court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.
<PAGE>

19

   (c) Each party to this Agreement irrevocably consents to service of process
in the manner provided for notices in Section 14. Nothing in this Agreement will
affect the right of any party to this Agreement to serve process in any other
manner permitted by law.

   SECTION 22. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

   SECTION 23. Additional Pledgors. Upon execution and delivery by the
Collateral Agent and a Subsidiary Loan Party of an instrument in the form of
Annex 1, such Subsidiary Loan Party shall become a Pledgor hereunder with the
same force and effect as if originally named as a Pledgor herein. The execution
and delivery of such instrument shall not require the consent of any Pledgor
hereunder. The rights and obligations of each Pledgor hereunder shall remain in
full force and effect notwithstanding the addition of any new Pledgor as a party
to this Agreement. This Agreement may be waived, amended or modified with
respect to any one or more Pledgors and any one or more Pledgors may be released
from its obligations hereunder without the consent or agreement of any other
Pledgor.

   SECTION 24. Execution of Financing Statements. Pursuant to Section 9-402 of
the Uniform Commercial Code as in effect in the State of New York, each Pledgor
authorizes the Collateral Agent to file financing statements with respect to the
Collateral owned by it without the signature of such Pledgor in such form and in
such filing offices as the Collateral Agent reasonably determines appropriate to
perfect the security interests of the Collateral Agent under this Agreement. A
carbon, photographic or other
<PAGE>

20

reproduction of this Agreement shall be sufficient as a financing statement for
filing in any jurisdiction.

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

                                 CRICKET COMMUNICATIONS, INC.,
                                 By____________________________
                                   Name:
                                   Title:

                                 CRICKET WIRELESS
                                 COMMUNICATIONS, INC.,
                                 By____________________________
                                   Name:
                                   Title:

                                 EACH SUBSIDIARY
                                 LISTED ON SCHEDULE I

                                 By___________________________
                                  Name:
                                  Title:

                                 EACH LICENSE SUBSIDIARY
                                 LISTED ON SCHEDULE I

                                 By___________________________
                                  Name:
                                  Title:

                                 STATE STREET BANK AND TRUST
                                 COMPANY, as Collateral Agent

                                 By___________________________

<PAGE>

21

                  Name:
                  Title:
<PAGE>

22

                                                               Schedule I to the
                                                       Borrower Pledge Agreement

                                   PLEDGORS

                  Name                                Address
                  ----                                -------
<PAGE>

23

                                                              Schedule II to the
                                                       Borrower Pledge Agreement

                                 CAPITAL STOCK

                                        Number and
            Number of     Registered     Class of     Percentage
Issuer    Certificates       Owner        Shares       of Shares
------- ---------------- ------------ -------------- ---------------

                LIMITED LIABILITY COMPANY MEMBERSHIP INTERESTS

                                                      Percentage
                                        Number and        of
            Number of     Registered     Class of     Membership
Issuer    Certificates       Owner      Interests    of Interests
------- ---------------- ------------- ------------ ----------------

                             PARTNERSHIP INTERESTS

                                          Percentage of Limited
            Number of     Limited or       General Partnership
Issuer    Certificates     General             Interests
------- --------------- --------------- ------------------------

<PAGE>

24

                                DEBT SECURITIES

           Principal      Date of       Maturity
Issuer       Amount        Notes          Date
-------   -----------    ---------      -----------

<PAGE>

25

                                                                  Annex 1 to the
                                                       Borrower Pledge Agreement

           SUPPLEMENT NO. dated as of , to the Borrower Pledge
       Agreement dated as of September 17, 1999, among, CRICKET
       COMMUNICATIONS, INC., a Delaware corporation ("Holdings"),
       CRICKET WIRELESS COMMUNICATIONS, INC., a Delaware corporation
       (the "Borrower"),each subsidiary of the Borrower listed on
       Schedule I thereto (each a "Subsidiary", and, collectively,
       the "Subsidiaries"), each subsidiary of the Leap Wireless
       International, Inc., a Delaware corporation (the "Parent")
       listed on Schedule I thereto (each a "License Subsidiary",
       and, collectively, the "License Subsidiaries"; and together
       with the Subsidiaries, Holdings and the Borrower, the
       "Pledgors") and STATE STREET BANK AND TRUST COMPANY, as
       collateral agent (in such capacity, the "Collateral Agent")
       for the Secured Parties.

   A. Reference is made to (a) the Collateral Agency and Intercreditor Agreement
(as defined in the Pledge Agreement) and (b) the Borrower Pledge Agreement.

   B. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Pledge Agreement.

   C. The Pledgors have entered into the Pledge Agreement in order to induce
Secured Parties to make loans under the applicable Secured Instruments. Section
23 of the Pledge Agreement provides that Subsidiary Loan Parties may become
Pledgors under the Pledge Agreement by execution and delivery of an instrument
in the form of this Supplement. The undersigned Subsidiary Loan Party (the "New
Pledgor") is executing this Supplement to become a Pledgor under the Pledge
Agreement in order to induce the Secured Parties to make additional loans under
the applicable Secured Instruments and as consideration for loans previously
made under the Secured Instruments.

   Accordingly, the Collateral Agent and the New Pledgor agree as follows:

   SECTION 1. In accordance with Section 23 of the Pledge Agreement, the New
Pledgor by its signature below becomes a
<PAGE>

26

Pledgor under the Pledge Agreement with the same force and effect as if
originally named therein as a Pledgor and the New Pledgor hereby agrees (a) to
all the terms and provisions of the Pledge Agreement applicable to it as a
Pledgor thereunder and (b) represents and warrants that the representations and
warranties made by it as a Pledgor thereunder are true and correct on and as of
the date hereof except for representations and warranties which by their terms
refer to a specific date. In furtherance of the fore going, the New Pledgor, as
security for the payment and performance in full of the Obligations, does hereby
create and grant to the Collateral Agent, its successors and assigns, for the
benefit of the Secured Parties, their successors and assigns, a security
interest in and lien on all of the New Pledgor's right, title and interest in
and to the Collateral of the New Pledgor. Each reference to a "Pledgor" in the
Pledge Agreement shall be deemed to include the New Pledgor. The Pledge
Agreement is hereby incorporated herein by reference.

   SECTION 2. The New Pledgor represents and warrants to the Collateral Agent
and the other Secured Parties that this Supplement has been duly authorized,
executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors' rights generally.

   SECTION 3. This Supplement may be executed in counter parts, each of which
shall constitute an original, but all of which when taken together shall
constitute a single contract. This Supplement shall become effective when the
Collateral Agent shall have received counterparts of this Supplement that, when
taken together, bear the signatures of the New Pledgor and the Collateral Agent.
Delivery of an executed signature page to this Supplement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart
of this Supplement.

   SECTION 4. The New Pledgor hereby represents and warrants that set forth on
Schedule I attached hereto is a true and correct schedule of all its Pledged
Securities.

   SECTION 5. Except as expressly supplemented hereby,
<PAGE>

27

the Pledge Agreement shall remain in full force and effect.

   SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

   SECTION 7. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect,
neither party hereto shall be required to comply with such provision for so long
as such provision is held to be invalid, illegal or unenforceable, but the
validity, legality and enforceability of the remaining provisions contained
herein and in the Pledge Agreement shall not in any way be affected or impaired.
The parties hereto shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

   SECTION 8. All communications and notices hereunder shall be in writing and
given as provided in Section 14 of the Pledge Agreement. All communications and
notices here under to the New Pledgor shall be given to it in care of the
Borrower as set forth in the Credit Agreement.

   SECTION 9. The New Pledgor agrees to reimburse the Collateral Agent for its
reasonable out-of-pocket expenses in connection with this Supplement, including
the reasonable fees, other charges and disbursements of counsel for the
Collateral Agent.

   IN WITNESS WHEREOF, the New Pledgor and the Collateral Agent have duly
executed this Supplement to the Pledge Agreement as of the day and year first
above written.

                           [NAME OF NEW PLEDGOR],

                           By_________________________________
<PAGE>

28

                         Name:
                         Title:

                         STATE STREET BANK AND TRUST
                         COMPANY, as Collateral Agent,

                         By_________________________________
                         Name:
                         Title:
<PAGE>

29

                                                                   Schedule I to
                                                              Supplement No. [ ]
                                                to the Borrower Pledge Agreement

                     Pledged Securities of the New Pledgor

                                 CAPITAL STOCK

                                            Number and      Percentage of
                                         Class of Shares      Shares or
         Number of       Registered         and Other       Other Equity
Issuer  Certificates         Owner       Equity Interests     Interests
------  ------------      ----------    -----------------   -------------

                LIMITED LIABILITY COMPANY MEMBERSHIP INTERESTS

                                                     Percentage
                        Number and                       of
        Number of       Registered       Class of    Membership
Issuer  Certificates       Owner        Interests   of Interests
------  ------------    ----------    ------------  -------------

                             PARTNERSHIP INTERESTS

                                    Percentage of Limited
         Number of      Limited or   General Partnership
Issuer  Certificates     General         Interests
------  ------------    ----------   -------------------

<PAGE>

30

                                DEBT SECURITIES

          Principal      Date of   Maturity
Issuer      Amount         Notes     Date
------    ----------     --------  --------
<PAGE>

================================================================================

                             AMENDED AND RESTATED

                 COLLATERAL AGENCY AND INTERCREDITOR AGREEMENT

                                  dated as of

                               October 20, 2000

                                     among

                         CRICKET COMMUNICATIONS, INC.,

                The Representatives and Unrepresented Holders
                              referred to herein,

                                      and

                     STATE STREET BANK AND TRUST COMPANY,
                              as Collateral Agent

================================================================================
<PAGE>

                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                     Page
                                                                     ----
<S>                                                                  <C>
                                   ARTICLE I

                                  Definitions
                                  -----------

SECTION 1.01.   Defined Terms......................................     2
SECTION 1.02.   Terms Generally....................................    13
SECTION 1.03.   Accounting Terms; GAAP.............................    14

                                  ARTICLE II

                       Permitted Additional Obligations;
                       ---------------------------------
                         Additional Security Documents
                         -----------------------------

SECTION 2.01.   Permitted Additional Obligations...................    14
SECTION 2.02.   Additional Security Documents......................    15

                                  ARTICLE III

                           Acts of Secured Parties;
                           ------------------------
                            Amounts of Obligations
                            ----------------------

SECTION 3.01.   Acts of Secured Parties............................    16
SECTION 3.02.   Determination of Amounts of Obligations............    16
SECTION 3.03.   Restrictions on Actions............................    17

                                  ARTICLE IV

                          Duties of Collateral Agent
                          --------------------------

SECTION 4.01.   Notice to Secured Parties..........................    18
SECTION 4.02.   Actions Under Support Documents;...................    21
SECTION 4.03.   Conflicting Instructions; No Instructions..........    20
SECTION 4.04.   Records............................................    22
</TABLE>

                                   ARTICLE V

                                       i
<PAGE>

<TABLE>
<S>                                                                         <C>

                      Collateral Accounts; Distributions
                      ----------------------------------

SECTION 5.01.   The Collateral Accounts..................................... 22
SECTION 5.02.   Application of Proceeds..................................... 24
SECTION 5.03.   Time of Payments............................................ 24
SECTION 5.04.   Application of Amounts Not Distributable.................... 25
SECTION 5.05.   Treatment of Contingent Obligations......................... 25
SECTION 5.06.   Collateral Agent's Calculations............................. 26

                                  ARTICLE VI

                                  Agreements
                                  ----------

SECTION 6.01.   Delivery of Agreements...................................... 26
SECTION 6.02.   Information................................................. 26

                                  ARTICLE VII

                             The Collateral Agent
                             --------------------

SECTION 7.01.   Appointment; Rights and Duties.............................. 27
SECTION 7.02.   Expenses; Indemnity; Damage Waiver.......................... 29

                                 ARTICLE VIII

                        Representations and Warranties
                        ------------------------------

SECTION 8.01.   Organization; Powers........................................ 31
SECTION 8.02.   Authorization; Enforceability............................... 31
SECTION 8.03.   Governmental Approvals; No Conflicts........................ 31

                                  ARTICLE IX

                          Intercreditor Arrangements
                          --------------------------

SECTION 9.01.   Security Interests.......................................... 32
SECTION 9.02.   Turnover of Collateral and Certain Payments................. 32
SECTION 9.03.   Release of Collateral and Guarantees........................ 33
SECTION 9.04.   Additional Collateral....................................... 33
SECTION 9.05.   Purchase of Collateral...................................... 34
SECTION 9.06.   Further Assurances, etc..................................... 34
SECTION 9.07.   Restrictions on Prepayments and

</TABLE>

                                      ii
<PAGE>

<TABLE>
<S>                                                                         <C>
                Purchases of Indebtedness..................................  34
SECTION 9.08.   Payment of Amounts Owing under Secured Instruments.........  35
SECTION 9.09.   Certain Amendments to Credit Agreement.....................  35
SECTION 9.10.   Payments Under ChaseTel Subordination Agreement............  36

                                   ARTICLE X

                              Benefit of Agreement.........................  36
                              --------------------

                                  ARTICLE XI

                                 Miscellaneous
                                 -------------

SECTION 11.01.  Notices....................................................  36
SECTION 11.02.  Waivers; Amendments........................................  37
SECTION 11.03.  Counterparts...............................................  39
SECTION 11.04.  Severability...............................................  39
SECTION 11.05.  Governing Law; Jurisdiction; Consent to Service of
                Process....................................................  39
SECTION 11.06.  WAIVER OF JURY TRIAL.......................................  40
SECTION 11.07.  Headings...................................................  40
SECTION 11.08.  Successors and Assigns.....................................  40
SECTION 11.09.  Termination................................................  41
SECTION 11.10.  Complete Agreement.........................................  41
</TABLE>

EXHIBIT:

       Exhibit A -- Form of Permitted Additional Obligations Designation

                                      iii
<PAGE>

                                    AMENDED AND RESTATED COLLATERAL AGENCY AND
                             INTERCREDITOR AGREEMENT dated as of October 20,
                             2000 among CRICKET COMMUNICATIONS, INC. a Delaware
                             corporation, STATE STREET BANK AND TRUST COMPANY,
                             as Collateral Agent, and the Representatives and
                             Unrepresented Holders referred to herein.

               WHEREAS the Borrower (such term, and other capitalized terms used
in this preliminary statement, having the meanings set forth in this Agreement
below) has entered into the Credit Agreement pursuant to which the Lenders have
made and will continue to make Loans to the Borrower;

               WHEREAS the Loan Parties have entered into certain Security
Documents in order to secure the Credit Facility Obligations and the Subsidiary
Loan Parties have entered into the Guarantee Agreement in order to guarantee the
Credit Facility Obligations;

               WHEREAS the Borrower may from time to time incur Permitted
Additional Obligations that may be secured under the Security Documents and
guaranteed pursuant to the Guarantee Agreement and the Parent Guarantee
Agreement;

               WHEREAS the Borrower, the Collateral Agent and the Administrative
Agent have entered into the Amended and Restated Collateral Agency and
Intercreditor Agreement dated as of August 14, 2000, amending and restating the
Collateral Agency and Intercreditor Agreement dated as of November 24, 1999 (as
so amended and restated, the "Existing Agreement") in order to set forth certain
                              ------------------
agreements with respect to the Obligations to be so secured and guaranteed,
including mechanisms for securing Permitted Additional Obligations and certain
intercreditor arrangements with respect to the enforcement of rights under the
Support Documents and the allocation of proceeds in respect of the Obligations;
and

               WHEREAS, the Borrower (a) has entered into the Nortel Credit
Agreement, (b) has entered into (or, concurrently with the execution and
delivery hereof, is entering into) the Ericsson Credit Agreement, (c) has
designated (or, concurrently with the execution and

                                       1
<PAGE>

delivery hereof, is designating) the Nortel Facility Obligations and the
Ericsson Facility Obligations as Permitted Additional Obligations in accordance
with Section 2.01 of the Existing Agreement and (d) has requested that the
Existing Agreement be amended and restated in the form hereof in order to
confirm that the Nortel Facility Obligations and the Ericsson Facility
Obligations are entitled to the benefits of the Support Documents and to effect
certain other changes to the Existing Agreement;

               NOW THEREFOR, the parties hereto agree as follows:

                                   ARTICLE I

                                  Definitions
                                  -----------

               SECTION 1.01. Defined Terms. As used in this Agreement, the
                             -------------
following terms have the meanings specified below:

               "Act" has the meaning set forth in Section 3.01.
                ---

               "Additional Security Document" means any agreement or instrument
                ----------------------------
(other than the Initial Security Documents) creating or evidencing a security
interest of the Collateral Agent in, or a Lien in favor of the Collateral Agent
on, or an assignment to the Collateral Agent of, any Collateral.

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

               "Administrative Agent" means Lucent Technologies Inc., in its
                --------------------
capacity as administrative agent for the Lenders under the Credit Agreement.

               "Borrower" means Cricket Communications, Inc. (formerly known as
                --------
Cricket Wireless Communications, Inc.), a Delaware corporation.

               "Borrower Pledge Agreement" means the Borrower Pledge Agreement
                -------------------------
dated as of November 24, 1999, among Holdings, the Borrower, the Subsidiary Loan
Parties and the Collateral Agent.

                                       2
<PAGE>

               "Business Day" has the meaning assigned to such term in the
                ------------
Credit Agreement or, if the Credit Agreement is not in effect, the Nortel Credit
Agreement or, if the Credit Agreement and the Nortel Credit Agreement are not in
effect, the Ericsson Credit Agreement, in each case as such Agreement is in
effect at the date hereof.

               "Capital Lease Obligations" of any Person means the obligations
                -------------------------
of such Person to pay rent or other amounts under any lease of (or other
arrangement conveying the right to use) real or personal property, or a
combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP,
and the amount of such obligations shall be the capitalized amount thereof
determined in accordance with GAAP.

               "ChaseTel Subordination Agreement" means the Subordination
                --------------------------------
Agreement dated as of March 16, 2000, among Holdings, the Borrower, the
Administrative Agent and Chase Telecommunications Holdings, Inc., a Delaware
corporation.

               "Collateral" means (a) any and all "Collateral" as defined in any
                ----------
applicable Security Document and (b) any and all other assets of whatever
nature, tangible or intangible, now owned or existing or hereafter acquired or
arising in which the Collateral Agent has been granted a Lien or security
interest, or that have been assigned to the Collateral Agent, pursuant to any of
the Security Documents.

               "Collateral Accounts" has the meaning set forth in Section
                -------------------
5.01(a).

               "Collateral Agent" means State Street Bank and Trust Company, in
                ----------------
its capacity as collateral agent for the Secured Parties under the Support
Documents.

               "Contingent Obligations" means any Obligations that are
                ----------------------
contingent obligations or not yet liquidated, including any obligation for the
reimbursement of any letter of credit that is outstanding but not yet drawn
upon.

               "Contingent Obligations Collateral Account" has the meaning set
                -----------------------------------------
forth in Section 5.05.

                                       3
<PAGE>

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

               "Credit Agreement" means the Credit Agreement dated as of
                ----------------
September 20, 1999, among Holdings, the Borrower, the Lenders and the
Administrative Agent; provided that, for purposes of the Support Documents
                      --------
(other than this Agreement), any reference to "the Credit Agreement" therein
shall be deemed to mean "each Secured Instrument" (as defined herein).

               "Credit Facility" means a credit facility, or group of credit
                ---------------
facilities, extended pursuant to a single Secured Instrument. For purposes of
this definition, all credit facilities that are governed by the same credit
agreement, loan agreement or similar document, or in respect of which the
Secured Parties thereunder vote together for purposes of declaring or waiving
defaults, shall be deemed to be extended pursuant to the same Secured
Instrument.

               "Credit Facility Obligations" means (a) the principal of and
                ---------------------------
premium, if any, and interest (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on the Loans,
when and as due, whether at maturity, by acceleration, upon one or more dates
set for prepayment or otherwise and (b) all other monetary obligations,
including fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary obligations incurred
during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding) of
the Borrower under the Credit Agreement.

               "Effective Date" has the meaning assigned to such term in the
                --------------
Credit Agreement. The parties hereto acknowledge that the Effective Date
occurred on September 20, 1999.

               "Enforcement Collateral Account" has the meaning set forth in
                ------------------------------
Section 5.01(a).

                                       4
<PAGE>

               "Environmental Laws" means all laws, rules, regulations, codes,
                ------------------
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, release or threatened release of any Hazardous
Material or to health and safety matters.

               "Environmental Liability" means any liability, contingent or
                -----------------------
otherwise (including any liability for damages, costs of environmental
remediation, fines, penalties or indemnities), of the Borrower or any Subsidiary
directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage,
treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous
Materials, (d) the release or threatened release of any Hazardous Materials into
the environment or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the
foregoing.

               "Equity Interests" means shares of capital stock, partnership
                ----------------
interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person.

               "Ericsson Agent" means Ericsson Credit AB, in its capacity as
                --------------
administrative agent for the Ericsson Lenders under the Ericsson Credit
Agreement.

               "Ericsson Credit Agreement" means the Credit Agreement dated as
                -------------------------
of October 20, 2000, among Holdings, the Borrower, the Ericsson Lenders and the
Ericsson Agent.

               "Ericsson Facility Obligations" means (a) the principal of and
                -----------------------------
premium, if any, and interest (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on the Ericsson
Loans, when and as due, whether at maturity, by acceleration, upon one or more
dates set for prepayment or otherwise and (b) all other monetary obligations,
including fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary

                                       5
<PAGE>

obligations incurred during the pendency of any bankruptcy, insolvency,
receivership or other similar proceeding, regardless of whether allowed or
allowable in such proceeding) of the Borrower under the Ericsson Credit
Agreement.

               "Ericsson Lenders" means the lenders from time to time party to
                ----------------
the Ericsson Credit Agreement.

               "Ericsson Loans" has the meaning assigned to the term "Loans" in
                --------------
the Ericsson Credit Agreement.

               "Financial Officer" means the chief financial officer,
                -----------------
principal accounting officer, treasurer or controller of the Borrower.

               "GAAP" means, subject to Section 1.03, generally accepted
                ----
accounting principles in the United States of America.

               "General Collateral Account" has the meaning set forth in Section
                --------------------------
5.01(a).

               "General Funds" means funds required to be deposited in the
                -------------
General Collateral Account as provided in Section 5.01(b).

               "General Funds Release Request" means a written request delivered
                -----------------------------
by the Borrower to the Collateral Agent requesting the Collateral Agent to
release funds from the General Collateral Account. Each General Funds Release
Request (a) shall specify (i) the amount of funds to be released, (ii) the date
of the requested release, (iii) the purpose for which the Borrower expects to
use such funds, (iv) the applicable provisions of the applicable Secured
Instrument or Secured Instruments pursuant to which such funds are being
released and (v) the wire instructions for the transfer of such funds to or for
the account of the Borrower and (b) shall be accompanied by a certificate of a
Financial Officer to the effect that such requested release of funds is not in
contravention of any Secured Instrument.

               "Governmental Authority" means the government of the United
                ----------------------
States of America, any other nation or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive,

                                       6
<PAGE>

legislative, judicial, taxing, regulatory or administrative powers or functions
of or pertaining to government.

               "Guarantee" of or by any Person (the "guarantor") means any
                ---------                            ---------
obligation, contingent or otherwise, of the guarantor guaranteeing or having the
economic effect of guaranteeing any Indebtedness or other obligation of any
other Person (the "primary obligor") in any manner, whether directly or
                   ---------------
indirectly, and including any obligation of the guarantor, direct or indirect,
(a) to purchase or pay (or advance or supply funds for the purchase or payment
of) such Indebtedness or other obligation or to purchase (or to advance or
supply funds for the purchase of) any security for the payment thereof, (b) to
purchase or lease property, securities or services for the purpose of assuring
the owner of such Indebtedness or other obligation of the payment thereof, (c)
to maintain working capital, equity capital or any other financial statement
condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation or (d) as an account party
in respect of any letter of credit or letter of guaranty issued to support such
Indebtedness or obligation; provided, that the term Guarantee shall not include
                            --------
endorsements for collection or deposit in the ordinary course of business.

               "Guarantee Agreement" means the Guarantee Agreement dated as of
                -------------------
November 24, 1999, among Holdings, the Subsidiary Loan Parties and the
Collateral Agent.

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

               "Holder" means any direct holder of, or creditor party to a
                ------
Secured Instrument in respect of, any Obligations.

               "Holdings" means Cricket Communications Holdings, Inc. (formerly
                --------
known as Cricket Communications, Inc.), a Delaware corporation.

               "Indebtedness" of any Person means, without duplication, (a) all
                ------------
obligations of such Person for

                                       7
<PAGE>

borrowed money or with respect to advances of any kind, (b) all obligations of
such Person evidenced by bonds, debentures, notes or similar instruments, (c)
all obligations of such Person upon which interest charges are customarily paid,
(d) all obligations of such Person under conditional sale or other title
retention agreements relating to property acquired by such Person, (e) all
obligations of such Person in respect of the deferred purchase price of property
or services (excluding current accounts payable incurred in the ordinary course
of business), (f) all Indebtedness of others secured by (or for which the holder
of such Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien on property owned or acquired by such Person, whether or
not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person of Indebtedness of others, (h) all Capital Lease Obligations of such
Person, (i) all obligations, contingent or otherwise, of such Person as an
account party in respect of letters of credit and letters of guaranty and (j)
all obligations, contingent or otherwise, of such Person in respect of bankers'
acceptances. The Indebtedness of any Person shall include the Indebtedness of
any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such
Person's ownership interest in or other relationship with such entity, except to
the extent the terms of such Indebtedness provide that such Person is not liable
therefor.

               "Indemnitee" has the meaning assigned to such term in Section
                ----------
7.02.

               "Indemnity, Subrogation and Contribution Agreement" means the
                -------------------------------------------------
Indemnity, Subrogation and Contribution Agreement dated as of November 24, 1999,
among the Borrower, the Subsidiary Loan Parties and the Collateral Agent.

               "Initial Security Documents" means this Agreement, the Security
                --------------------------
Agreement, the Borrower Pledge Agreement and the Parent Pledge Agreement.

               "Lenders" means the lenders from time to time party to the Credit
                -------
Agreement; provided that, for purposes of the Support Documents (other than this
           --------
Agreement), any reference to "Lender" or "Lenders" therein shall be deemed

                                       8
<PAGE>

to mean "Secured Party" or "Secured Parties" (as defined herein), respectively.

               "License Subsidiary" has the meaning assigned to such term in the
                ------------------
Credit Agreement or, if the Credit Agreement is not in effect, the Nortel Credit
Agreement or, if the Credit Agreement and the Nortel Credit Agreement are not in
effect, the Ericsson Credit Agreement, in each case as such Agreement is in
effect at the date hereof.

               "Lien" means, with respect to any asset, (a) any mortgage, deed
                ----
of trust, lien, pledge, hypothecation, encumbrance, charge or security interest
in, on or of such asset, (b) the interest of a vendor or a lessor under any
conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the
foregoing) relating to such asset and (c) in the case of securities, any
purchase option, call or similar right of a third party with respect to such
securities.

               "Loan Documents" means the "Loan Documents", as defined in each
                --------------
of the Credit Agreement, the Nortel Credit Agreement and the Ericsson Credit
Agreement and includes all other agreements, documents and instruments
evidencing or governing any of the Obligations (including all Secured
Instruments and Support Documents), in each case as in effect from time to time.

               "Loan Parties" means the Parent, Holdings, the Borrower and the
                ------------
Subsidiary Loan Parties.

               "Loans" has the meaning assigned to such term in the Credit
                -----
Agreement; provided that, for purposes of the Support Documents (other than this
           --------
Agreement), any reference to "Loans" therein shall be deemed to mean
"Obligations" (as defined herein).

               "Moody's means Moody's Investors Service, Inc.
                -------

               "Non-Vendor Secured Party" means any Secured Party that (a) is
                ------------------------
not a Vendor or an Affiliate of a Vendor, (b) is not a Holder of any Obligations
Guaranteed by or otherwise subject to credit support provided by a Vendor or an
Affiliate of a Vendor and (c) is not subject to any agreement or arrangement
pursuant to which any Vendor or an Affiliate of any Vendor has the right to
direct, or to consent or approve of the exercise of, any voting rights of

                                       9
<PAGE>

such Secured Party in respect of the Obligations held by it.

               "Nortel Agent" means Nortel Networks Inc., in its capacity as
                ------------
administrative agent for the Nortel Lenders under the Nortel Credit Agreement.

               "Nortel Credit Agreement" means the Credit Agreement dated as of
                -----------------------
August 28, 2000, among Holdings, the Borrower, the Nortel Lenders and the Nortel
Agent.

               "Nortel Facility Obligations" means (a) the principal of and
                ---------------------------
premium, if any, and interest (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on the Nortel
Loans, when and as due, whether at maturity, by acceleration, upon one or more
dates set for prepayment or otherwise and (b) all other monetary obligations,
including fees, costs, expenses and indemnities, whether primary, secondary,
direct, contingent, fixed or otherwise (including monetary obligations incurred
during the pendency of any bankruptcy, insolvency, receivership or other similar
proceeding, regardless of whether allowed or allowable in such proceeding) of
the Borrower under the Nortel Credit Agreement.

               "Nortel Lenders" means the lenders from time to time party to the
                --------------
Nortel Credit Agreement.

               "Nortel Loans" has the meaning assigned to the term "Loans" in
                ------------
the Nortel Credit Agreement.

               "Notice of Cancelation of Enforcement" means, with respect to any
                ------------------------------------
Notice of Enforcement, a notice or notices delivered to the Collateral Agent by
Representatives and/or Unrepresented Holders canceling such Notice of
Enforcement in accordance with Section 4.02.

               "Notice of Enforcement" means a notice or notices delivered to
                ---------------------
the Collateral Agent by Representatives and/or Unrepresented Holders in
accordance with Section 4.02 stating that (a) all or part of the Obligations are
due and payable and remain unpaid and any applicable grace period for payment
thereof has lapsed or (b) all or part of the Obligations are then permitted by
the Secured Instrument or Secured Instruments under which such Obligations are

                                      10
<PAGE>

outstanding (because of the occurrence of an event of default or similar event
under such Secured Instrument or Secured Instruments) to be declared due and
payable prior to the stated maturity thereof pursuant to the terms of such
Secured Instrument or Secured Instruments. A Notice of Enforcement shall be
deemed to have been given when the notice referred to in the preceding sentence
has actually been received by the Collateral Agent and to have been rescinded
when the Collateral Agent has actually received a Notice of Cancelation of
Enforcement. A Notice of Enforcement shall be deemed to be in effect at all
times after such Notice of Enforcement has been given until such time, if any,
as such Notice of Enforcement has been rescinded. The Representatives and
Unrepresented Holders that delivered a Notice of Enforcement shall rescind such
Notice of Enforcement once such Representatives and Unrepresented Holders are
satisfied that the event or events giving rise to such Notice of Enforcement
have been cured or waived in accordance with the applicable Secured Instrument
and no other event has occurred and is continuing that would permit a Notice of
Enforcement to be given.

               "Obligations" means, collectively, the Credit Facility
                -----------
Obligations, the Nortel Facility Obligations, the Ericsson Facility Obligations
and all Permitted Additional Obligations.

               "Parent" means Leap Wireless International, Inc., a Delaware
                ------
corporation.

               "Parent Guarantee Agreement" means the Guarantee Agreement dated
                --------------------------
as of August 28, 2000, between the Parent and the Collateral Agent.

               "Parent Pledge Agreement" means the Parent Pledge Agreement dated
                -----------------------
November 24, 1999, among the Parent and the Collateral Agent.

               "Permitted Additional Obligations" means (a) the principal of and
                --------------------------------
premium, if any, and interest (including interest accruing during the pendency
of any bankruptcy, insolvency, receivership or other similar proceeding,
regardless of whether allowed or allowable in such proceeding) on any
Indebtedness for borrowed money of the Borrower, but only to the extent that
such Indebtedness is designated as "Permitted Additional Obligations" in
accordance with Section 2.01, and (b) all other monetary

                                      11
<PAGE>

obligations (other than monetary obligations in respect of Indebtedness that
does not constitute Permitted Additional Obligations), including fees, costs,
expenses and indemnities, whether primary, secondary, direct, contingent, fixed
or otherwise (including monetary obligations incurred during the pendency of any
bankruptcy, insolvency, receivership or other similar proceeding, regardless of
whether allowed or allowable in such proceeding) of the Borrower under the
Secured Instrument governing or evidencing such Indebtedness referred to in
clause (a) above; provided that any Indebtedness or obligations owing to
                  --------
Holdings, any Subsidiary Loan Party or Affiliate of the Borrower shall not
constitute Permitted Additional Obligations.

               "Permitted Additional Obligations Designation" means each
                --------------------------------------------
Permitted Additional Obligations Designation duly completed and executed by the
Collateral Agent, the Borrower and the holder or holders of the Permitted
Additional Obligations referenced therein (or a Representative of such holders)
and delivered pursuant to Section 2.01, substantially in form of Exhibit A.

               "Permitted Investments" means:
                ---------------------

               (a)  direct obligations of, or obligations the principal of and
interest on which are unconditionally guaranteed by, the United States of
America (or by any agency thereof to the extent such obligations are backed by
the full faith and credit of the United States of America), in each case
maturing within one year from the date of acquisition thereof;

               (b)  investments in commercial paper maturing within 270 days
from the date of acquisition thereof and having, at such date of acquisition,
the highest credit rating obtainable from S&P or from Moody's;

               (c)  investments in certificates of deposit, banker's acceptances
and time deposits maturing within 180 days from the date of acquisition thereof
issued or guaranteed by or placed with, and money market deposit accounts issued
or offered by, any domestic office of any commercial bank organized under the
laws of the United States of America or any State thereof which has a combined
capital and surplus and undivided profits of not less than $500,000,000; and

                                      12
<PAGE>

               (d)  fully collateralized repurchase agreements with a term of
not more than 30 days for securities described in clause (a) above and entered
into with a financial institution satisfying the criteria described in clause
(c) above.

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

               "Principal Obligations" means the principal amount of the
                ---------------------
outstanding Obligations.

               "Related Parties" means, with respect to any specified Person,
                ---------------
such Person's Affiliates and the respective directors, officers, employees,
agents and advisors of such Person and such Person's Affiliates.

               "Representative" means, as to any Secured Party or Secured
                --------------
Parties, any Person designated in the Secured Instrument evidencing or governing
the Obligations held by such Secured Party or Secured Parties as the trustee,
agent or representative of such Secured Party or Secured Parties (including, in
the case of the Credit Facility Obligations, the Administrative Agent, in the
case of the Nortel Facility Obligations, the Nortel Agent, and, in the case of
the Ericsson Facility Obligations, the Ericsson Agent).

               "Required Committed Credit Facility Parties" means, at any time,
                ------------------------------------------
with respect to any Credit Facility, Secured Parties having outstanding
Principal Obligations and Secured Instrument Commitments under such Credit
Facility representing more than 50% of the aggregate principal amount of the
total outstanding Principal Obligations and Secured Instrument Commitments under
such Credit Facility at such time.

               "Required Committed Secured Parties" means, at any time, Secured
                ----------------------------------
Parties having outstanding Principal Obligations and Secured Instrument
Commitments representing more than 50% of the sum of the total outstanding
Principal Obligations and Secured Instrument Commitments at such time.

               "Required Credit Facility Parties" means, at any time, with
                --------------------------------
respect to any Credit Facility, Secured Parties having outstanding Principal
Obligations under such Credit

                                      13
<PAGE>

Facility representing more than 50% of the aggregate principal amount of the
total outstanding Principal Obligations under such Credit Facility at such time.

               "Required Non-Vendor Secured Parties" means, at any time, Non-
                -----------------------------------
Vendor Secured Parties having outstanding Principal Obligations representing
more than 50% of the aggregate principal amount of the total outstanding
Principal Obligations held by all Non-Vendor Secured Parties at such time.

               "Required Secured Parties" means, at any time, Secured Parties
                ------------------------
having outstanding Principal Obligations representing more than 50% of the
aggregate principal amount of the total outstanding Principal Obligations at
such time.

               "S&P" means Standard & Poor's.
                ---

               "Secured Instrument" means any instrument or agreement (other
                ------------------
than the Support Documents) that evidences or governs the terms of any of the
Obligations (including, in the case of the Credit Facility Obligations, the
Credit Agreement, in the case of the Nortel Facility Obligations, the Nortel
Credit Agreement, and, in the case of the Ericsson Facility Obligations, the
Ericsson Credit Agreement).

               "Secured Instrument Commitments" means, at any time, commitments
                ------------------------------
in effect at such time to extend credit to the Borrower under any Secured
Instrument that, if extended at such time, would constitute Principal
Obligations.

               "Secured Parties" means the Collateral Agent and the Holders of
                ---------------
the Obligations (including, in the case of the Credit Facility Obligations, the
Lenders and the Administrative Agent, in the case of the Nortel Facility
Obligations, the Nortel Lenders and the Nortel Agent, and, in the case of the
Ericsson Facility Obligations, the Ericsson Lenders and the Ericsson Agent).

               "Security Agreement" means the Security Agreement dated as of
                ------------------
November 24, 1999, among the Borrower, the Subsidiary Loan Parties and the
Collateral Agent.

               "Security Documents" means the Initial Security Documents and the
                ------------------
Additional Security Documents.

                                      14
<PAGE>

               "Subordination Agreement" means the Subordination Agreement dated
                -----------------------
as of November 24, 1999, among the Loan Parties and the Collateral Agent.

               "Subordination Collateral Account" has the meaning set forth in
                --------------------------------
Section 5.01(a).

               "subsidiary" means, with respect to any Person (the "parent") at
                ----------                                          ------
any date, any corporation, limited liability company, partnership, association
or other entity the accounts of which would be consolidated with those of the
parent in the parent's consolidated financial statements if such financial
statements were prepared in accordance with GAAP as of such date, as well as any
other corporation, limited liability company, partnership, association or other
entity (a) of which securities or other ownership interests representing more
than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are,
as of such date, owned, controlled or held, or (b) that is, as of such date,
otherwise Controlled, by the parent or one or more subsidiaries of the parent or
by the parent and one or more subsidiaries of the parent.

               "Subsidiary" means any subsidiary of the Borrower.
                ----------

               "Subsidiary Loan Parties" means the Subsidiaries and the License
                -----------------------
Subsidiaries.

               "Support Documents" means the Security Documents, the Indemnity,
                -----------------
Subrogation and Contribution Agreement, the Subordination Agreement, the
Guarantee Agreement and the Parent Guarantee Agreement.

               "Unrepresented Holder" means any Holder for which there is no
                --------------------
Representative.

               "Vendor" means a Person that sells equipment to, or provides non-
                ------
financial services to, any of the Loan Parties.

               SECTION 1.02. Terms Generally. The definitions of terms herein
                             ---------------
shall apply equally to the singular and plural forms of the terms defined.
Whenever the context may require, any pronoun shall include the corresponding

                                      15
<PAGE>

masculine, feminine and neuter forms. The words "include", "includes" and
"including" shall be deemed to be followed by the phrase "without limitation".
The word "will" shall be construed to have the same meaning and effect as the
word "shall". Unless the context requires otherwise (a) any definition of or
reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from
time to time amended, supplemented or otherwise modified, (b) any reference
herein to any Person shall be construed to include such Person's successors and
assigns, (c) the words "herein", "hereof" and "hereunder", and words of similar
import, shall be construed to refer to this Agreement in its entirety and not to
any particular provision hereof, (d) all references herein to Articles, Sections
and Exhibits shall be construed to refer to Articles and Sections of, and
Exhibits to, this Agreement and (e) the words "asset" and "property" shall be
construed to have the same meaning and effect and to refer to any and all
tangible and intangible assets and properties, including cash, securities,
accounts, contract rights, licenses and intellectual property.

               SECTION 1.03. Accounting Terms; GAAP. Except as otherwise
                             -----------------------
expressly provided herein, all terms of an accounting or financial nature shall
be construed in accordance with GAAP, as in effect from time to time; provided
                                                                      --------
that, if the Borrower notifies the Collateral Agent that the Borrower requests
an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if the Collateral Agent notifies the Borrower
that the Required Committed Secured Parties request an amendment to any
provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then
such provision shall be interpreted on the basis of GAAP as in effect and
applied immediately before such change shall have become effective until such
notice shall have been withdrawn or such provision amended in accordance
herewith.

                                  ARTICLE II

                      Permitted Additional Obligations;
                      ---------------------------------
                         Additional Security Documents
                         -----------------------------

                                      16
<PAGE>

               SECTION 2.01. Permitted Additional Obligations. (a) The Borrower
                             ---------------------------------
may from time to time designate any Indebtedness (including Indebtedness to be
advanced pursuant to Secured Instrument Commitments under any Credit Facility)
for borrowed money of the Borrower as Permitted Additional Obligations hereunder
by (i) delivering to the Collateral Agent a Permitted Additional Obligations
Designation in respect of such Indebtedness describing such Indebtedness and
attaching thereto a true and complete copy of all instruments and agreements
(together with all schedules, exhibits, annexes, appendices and other
attachments thereto), including the applicable Secured Instruments, relating to
such Indebtedness to which the Borrower or any Subsidiary Loan Party is a party,
and (ii) delivering to the Collateral Agent a certificate of a Financial Officer
to the effect that such designation of such Indebtedness is not in contravention
of any Secured Instrument. Upon completion of the actions described in clauses
(i) and (ii) of the preceding sentence, but subject to the following paragraph,
the Indebtedness designated by such Permitted Additional Obligations Designation
shall constitute Permitted Additional Obligations and the Holders thereof shall
constitute Secured Parties hereunder and shall be bound by the provisions
hereof.

               (b)  Notwithstanding anything herein to the contrary, (i) the
Borrower agrees that it will not incur any Indebtedness that would result in the
total outstanding Principal Obligations at any time exceeding $1,845,000,000 and
(ii) any purported designation of any Indebtedness as Permitted Additional
Obligations that would result in the total outstanding Principal Obligations
exceeding the limitation set forth in the foregoing clause (i) at the time of
such purported designation shall be null and void and of no force or effect.

               (c)  It is the intent of the parties that, after the date hereof,
any increase in the total amount of Principal Obligations and Secured Instrument
Commitments over the total amount thereof previously designated hereunder shall
require the execution and delivery of an additional Permitted Additional
Obligations Designation, notwithstanding that such additional Principal
Obligations or Secured Instrument Commitments are under the Credit Agreement,
the Nortel Credit Agreement, the Ericsson Credit Agreement or any other Credit
Facility that was the subject of a previous Permitted Additional Obligations
Designation, but that any Indebtedness resulting from loans advanced

                                      17
<PAGE>

pursuant to a Secured Instrument Commitment that was properly designated as
Permitted Additional Obligations in accordance with this Agreement (and in
compliance with paragraph (b) above) at the time of execution and delivery of
the Permitted Additional Obligations Designation relating thereto shall
constitute Permitted Additional Obligations notwithstanding any subsequent
failure by the Borrower to comply with paragraph (b) above.

               SECTION 2.02. Additional Security Documents. If the Borrower or
                             ------------------------------
any Subsidiary Loan Party is required by any Secured Instrument, Security
Document or other agreement to grant a security interest in or Lien on, or
assignment of, any assets (other than assets constituting Collateral under the
Initial Security Documents) of the Borrower or any Subsidiary Loan Party to
secure any Obligations, the Borrower shall, or shall cause the applicable
Subsidiary Loan Party or Subsidiary Loan Parties to, grant such security
interest in or Lien on, or assignment of, such assets to the Collateral Agent to
secure all the Obligations pursuant to an Additional Security Document.

                                  ARTICLE III

                           Acts of Secured Parties;
                           ------------------------
                            Amounts of Obligations
                            ----------------------

                                      18
<PAGE>

               SECTION 3.01. Acts of Secured Parties. Any request, demand,
                             ------------------------
authorization, direction, notice, consent, waiver or other action permitted or
required by this Agreement to be given or taken by any Secured Party, the
Required Secured Parties, the Required Non-Vendor Secured Parties, the Required
Committed Credit Facility Parties or the Required Credit Facility Parties with
respect to any Credit Facility or the Required Committed Secured Parties may be
and, at the request of the Collateral Agent, shall be embodied in and evidenced
by one or more instruments reasonably satisfactory in form to the Collateral
Agent and signed by such Secured Party or its Representative or the Required
Secured Parties, the Required Non-Vendor Secured Parties, the Required Committed
Credit Facility Parties or the Required Credit Facility Parties with respect to
any Credit Facility or the Required Committed Secured Parties or their
Representatives (as applicable) and, except as otherwise expressly provided in
any such instrument, any such action shall become effective when such instrument
or instruments shall have been delivered to the Collateral Agent. The instrument
or instruments evidencing any action (and the action embodied therein and
evidenced thereby) are sometimes referred to herein as an "Act" of the Persons
                                                           ---
signing such instrument or instruments. The Collateral Agent shall be entitled
to rely absolutely upon (a) an Act of any Representative if such Act purports to
be taken by or on behalf of the Secured Parties represented by such
Representative and (b) an Act of any Holder if such Act purports to be taken by
or on behalf of such Holder, and nothing in this Section 3.01 or elsewhere in
this Agreement shall be construed to require any Representative or Holder to
demonstrate that it has been authorized to take any action which it purports to
be taking, the Collateral Agent being entitled to rely conclusively, and being
fully protected in so relying, on any Act of such Representative or Holder.

               SECTION 3.02. Determination of Amounts of Obligations. Whenever
                             ----------------------------------------
the Collateral Agent is required to determine the existence or amount of any of
the Obligations or Secured Instrument Commitments or any portion thereof for any
purposes of this Agreement, it shall be entitled to make such determination on
the basis of one or more certificates of any applicable Representative or
Holder; provided that if, notwithstanding the request of the Collateral Agent,
        --------
any applicable Representative or Holder shall fail or refuse promptly to certify
as to the existence or amount of any Obligations or Secured

                                      19
<PAGE>

Instrument Commitments or any portion thereof, the Collateral Agent shall be
entitled to determine such existence or amount by such method as the Collateral
Agent may, in its sole discretion exercised in good faith, determine, including
by reliance upon a certificate of the Borrower; provided further that, promptly
                                                -------- -------
following determination of any such amount, the Collateral Agent shall notify
such Representative or Holder of such determination and thereafter shall correct
any error that such Representative or Holder brings to the attention of the
Collateral Agent. The Collateral Agent may rely conclusively, and shall be fully
protected in so relying, on any determination made by it in accordance with the
provisions of the preceding sentence (or as otherwise directed by a court of
competent jurisdiction) and shall have no liability to the Borrower or any
Secured Party or any other Person as a result of any action taken by the
Collateral Agent based upon such determination prior to receipt of notice of any
error in such determination.

               SECTION 3.03. Restrictions on Actions. Each Secured Party agrees
                             -----------------------
that, unless and until this Agreement is terminated as provided herein, the
provisions of this Agreement shall provide the exclusive method by which any
Secured Party may exercise, or direct the exercise of, rights and remedies under
the Support Documents. Therefore, each Secured Party shall, for the mutual
benefit of all Secured Parties, except as permitted under this Agreement:

               (a)  refrain from taking or filing any action, judicial or
otherwise, to enforce any rights or pursue any remedies under the Support
Documents, except for delivering notices hereunder; and

               (b)  refrain from exercising any rights or remedies under the
Support Documents which may be exercisable as a result of an event that could
result in a Notice of Enforcement.

Except as specifically otherwise provided herein or in the Secured Instrument to
which a Secured Party is a party, however, any Secured Party or the Collateral
Agent, as applicable, may exercise any right or remedy available to it under any
Secured Instrument, any related agreement (other than the Support Documents) or
otherwise at law or in equity, including (i) imposing a default rate of interest
in accordance with the applicable Secured

                                      20
<PAGE>

Instrument, (ii) exercising any right or remedy or taking any other action that
it is permitted or authorized to exercise or take or (iii) exercising its rights
and remedies as a general creditor in accordance with the applicable Secured
Instrument and applicable law, including the right to cease advancing loans or
otherwise extending credit to the Borrower, to commence legal proceedings to
collect any Obligation due and payable to such Secured Party and remaining
unpaid, to accelerate the maturity of any Obligations or to terminate any
Secured Instrument Commitment in accordance with the applicable Secured
Instrument, to commence legal proceedings (including involuntary bankruptcy
proceedings) to enforce any Secured Instrument and obtain a judgment and to
enforce such judgment, in each case to the same extent as if such Secured Party
were an unsecured creditor.

                                  ARTICLE IV

                          Duties of Collateral Agent
                          --------------------------

               SECTION 4.01. Notice to Secured Parties. The Collateral Agent
                             -------------------------
shall promptly notify each Representative and Unrepresented Holder in the event
it shall receive any Notice of Enforcement or any Notice of Cancelation of
Enforcement or any request by any party hereto or by any Loan Party for any
consent, waiver or amendment with respect hereto or any other Support Document.
Upon being notified by the Collateral Agent of any such Notice of Enforcement or
Notice of Cancelation of Enforcement, each Representative shall notify each
Secured Party that it represents of such Notice of Enforcement or Notice of
Cancelation of Enforcement.

               SECTION 4.02. Actions Under Support Documents; Notices of
                             -------------------------------------------
Enforcement; Etc. (a) The Collateral Agent shall not be obligated to take any
-----------------
action under this Agreement or any of the Support Documents except for the
performance of such duties as are specifically set forth herein or therein.

               (b)   A Notice of Enforcement may be delivered only by:

               (i)   the Required Secured Parties;

                                      21
<PAGE>

               (ii)  the Required Non-Vendor Secured Parties; provided that, at
                                                              --------
         the time such Notice of Enforcement is delivered, the aggregate amount
         of outstanding Principal Obligations held by all Non-Vendor Secured
         Parties is greater than or equal to the lesser of (A) 15% of the
         aggregate amount of outstanding Principal Obligations and (B)
         $50,000,000; or

              (iii)  the Required Credit Facility Parties under any Credit
         Facility; provided that, at the time such Notice of Enforcement is
                   --------
         delivered, (A) the aggregate amount of outstanding Principal
         Obligations under such Credit Facility is greater than or equal to 15%
         of the aggregate amount of outstanding Principal Obligations, (B) the
         aggregate amount of outstanding Principal Obligations held by all
         Non-Vendor Secured Parties is less than the lesser of (1) 15% of the
         aggregate amount of outstanding Principal Obligations and (2)
         $50,000,000, and (C) an event of default has occurred and is continuing
         under such Credit Facility that permits the Obligations thereunder to
         be declared due and payable prior to the stated maturity thereof
         pursuant to the terms of such Credit Facility (or such Obligations have
         become due and payable and have not been paid) and a period of 90 days
         has lapsed during which such event of default has been continuing and
         has not been cured or waived (or such Obligations have not been paid,
         as the case may be).

               (c)  A Notice of Cancelation of Enforcement may be delivered only
by:

               (i)  the Required Secured Parties; provided that such Notice of
         Cancelation of Enforcement pertains to a Notice of Enforcement
         delivered by the Required Secured Parties;

               (ii) the Required Non-Vendor Secured Parties; provided that, at
                                                             --------
         the time such Notice of Cancelation of Enforcement is delivered, the
         aggregate amount of outstanding Principal Obligations held by all
         Non-Vendor Secured Parties is greater than or equal to the lesser of
         (A) 15% of the aggregate amount of outstanding Principal Obligations
         and (B) $50,000,000; or

              (iii) the Required Credit Facility Parties under any Credit
         Facility; provided that such Notice of
                   --------

                                      22
<PAGE>

         Cancelation of Enforcement pertains to a Notice of Enforcement
         delivered by the Required Credit Facility Parties under the same Credit
         Facility.

               (d)  Subject to the provisions of Article VII, the Collateral
Agent shall take any action under or with respect to the Support Documents which
is not inconsistent with or contrary to the provisions of this Agreement or any
other Support Document and which is in accordance with written instructions that
the Collateral Agent has received from:

               (i)  at any time when a Notice of Enforcement is in effect:

               (A)  the Required Secured Parties; provided that such
                                                  --------
         instructions are not inconsistent with any written instructions given
         by the Required Non-Vendor Secured Parties if, at such time, the
         aggregate amount of outstanding Principal Obligations held by all Non-
         Vendor Secured Parties is greater than or equal to the lesser of (A)
         15% of the aggregate amount of outstanding Principal Obligations and
         (B) $50,000,000;

               (B)  the Required Non-Vendor Secured Parties; provided that, at
                                                             --------
         such time, the aggregate amount of outstanding Principal Obligations
         held by all Non-Vendor Secured Parties is greater than or equal to the
         lesser of (A) 15% of the aggregate amount of outstanding Principal
         Obligations and (B) $50,000,000; or

               (C)  subject to conflicting instructions that the Collateral
         Agent is required to follow pursuant to Section 4.03, the Required
         Credit Facility Parties under any Credit Facility; provided that such
                                                            --------
         Notice of Enforcement was delivered by the Required Credit Facility
         Parties under the same Credit Facility; and

               (ii) at any other time, the Required Committed Secured Parties.

               (e)  The Collateral Agent may not exercise any remedy under
Section 9-505(2) of the Uniform Commercial Code, as in effect in any applicable
jurisdiction, except with the consent of each Secured Party affected thereby.

                                      23
<PAGE>

               SECTION 4.03. Conflicting Instructions; No Instructions. (a) At
                             -----------------------------------------
any time when a Notice of Enforcement shall be in effect, the Collateral Agent
shall, subject in all cases to the provisions of Article VII, exercise or
refrain from exercising all such rights, powers and remedies as shall be
available to it under the Support Documents or any of them in accordance with
any written instructions received in accordance with Section 4.02(d)(i), subject
to paragraph (b) below, in the case of conflicting instructions received in
accordance with Section 4.02(d)(i). Absent any such written instructions at a
time when a Notice of Enforcement shall be in effect, the Collateral Agent may
take, but shall have no obligation to take, any and all such actions under the
Support Documents or any of them or otherwise as it shall deem to be in the best
interests of the Secured Parties in order to maintain the Collateral and protect
and preserve the Collateral and the rights of the Secured Parties.

               (b)  At any time when a Notice of Enforcement shall be in effect,
if the Collateral Agent shall receive conflicting instructions given in
accordance with Section 4.02(d)(i) with respect to the exercise of remedies
under or with respect to the Support Documents:

               (i)  if such conflict shall occur with respect to whether or not
         to exercise such remedies, the Collateral Agent shall follow those
         instructions directing the Collateral Agent to exercise remedies;
         provided that the Collateral Agent shall follow instructions directing
         --------
         it not to exercise remedies received from the Required Non-Vendor
         Secured Parties if, at such time, the aggregate amount of outstanding
         Principal Obligations held by all Non-Vendor Secured Parties is greater
         than or equal to the lesser of (A) 15% of the aggregate amount of
         outstanding Principal Obligations and (B) $50,000,000; and

               (ii) if such conflict shall occur with respect to the manner of
         exercising such remedies, the Collateral Agent shall follow the
         instructions of (A) the Required Non-Vendor Secured Parties if, at such
         time, the aggregate amount of outstanding Principal Obligations held by
         all Non-Vendor Secured Parties is greater than or equal to the lesser
         of (1) 15% of the aggregate amount of outstanding Principal Obligations
         and (2) $50,000,000 or (B), if clause (A) does not apply (or if clause
         (A) does apply but the Required

                                      24
<PAGE>

         Non-Vendor Secured Parties shall fail to give instructions), the
         Required Secured Parties or (C) if the applicable Notice of Enforcement
         was given by the Required Credit Facility Secured Parties under a
         Credit Facility and clauses (A) and (B) above do not apply (or clause
         (A) or (B) above does apply but no instructions are given thereunder),
         then the Required Credit Facility Secured Parties under such Credit
         Facility, or (D) if clauses (A), (B) and (C) above do not apply (or any
         such clause does apply but no instructions are given thereunder), then
         the Representative or Unrepresented Holders representing the greatest
         amount of Principal Obligations then outstanding that shall have
         delivered instructions to the Collateral Agent.

Representatives and Unrepresented Holders giving instructions to the Collateral
Agent under this Section 4.03 shall do so in good faith and shall give such
instructions as shall have the effect of realizing on the Collateral and take
other available remedies under the Support Documents in a reasonably appropriate
and expeditious manner under the circumstances then applicable.

               SECTION 4.04. Records. (a) The Collateral Agent shall maintain
                             -------
regarding determinations of the amounts of the outstanding Obligations and
Secured Instrument Commitments for any purpose, any distributions from the
Collateral Accounts and any information received by the Collateral Agent
pursuant to Section 6.02. The information contained in such records shall be
made available to any Secured Party upon request.

               (b)  The Collateral Agent shall maintain a record of the total
outstanding Principal Obligations and Secured Instrument Commitments at any time
in effect. The Borrower shall promptly notify the Collateral Agent of any change
in the outstanding Principal Obligations or Secured Instrument Commitments at
any time, whether as a result of any termination or reduction of such Secured
Instrument Commitments, or any payment in respect of such Principal Obligations
or otherwise. The information contained in such records shall be made available
to any Secured Party upon request. Any Secured Party shall be entitled to rely
upon such information.

                                   ARTICLE V

                                      25
<PAGE>

                       Collateral Accounts; Distributions
                       ----------------------------------

               SECTION 5.01. The Collateral Accounts. (a) The Collateral Agent
                             -----------------------
shall establish and maintain at its office located at Two Avenue DeLefayette,
6th Floor, Boston, MA 02111-1724, three collateral accounts designated the
"Enforcement Collateral Account", the "Subordination Collateral Account" and the
 ------------------------------        --------------------------------
"General Collateral Account", respectively (such collateral accounts,
 --------------------------
collectively, the "Collateral Accounts").
                   -------------------

               (b)  All amounts which are received by the Collateral Agent (in
its capacity as Collateral Agent) in respect of the Collateral, whether in
connection with the exercise of any right or remedy provided in this Agreement
or any other Support Document or otherwise (including all amounts received on
account of any sale of or other realization upon any of the Collateral pursuant
to any Security Document), or pursuant to enforcement of the Guarantee Agreement
or the Parent Guarantee Agreement, in each case while a Notice of Enforcement is
in effect shall be deposited in the Enforcement Collateral Account. While a
Notice of Enforcement is in effect, all amounts on deposit in or required to be
deposited in the Subordination Collateral Account or the General Collateral
Account shall be transferred to the Enforcement Collateral Account. Upon the
rescission of each effective Notice of Enforcement in accordance with the terms
hereof, the Collateral Agent shall (subject to the payment of any Obligations
then due in accordance with Section 5.02) release any funds then remaining on
deposit in the Enforcement Collateral Account to any Loan Party to the extent
required by any of the Security Documents; provided that such funds in an amount
                                           --------
equal to the sum of (x) the amount of General Funds transferred to the
Enforcement Collateral Account from the General Collateral Account pursuant to
paragraph (d) of this Section and (y) the amount of funds that would have been
deposited in the General Collateral Account pursuant to paragraph (d) of this
Section if a Notice of Enforcement had not been in effect, together with all
interest and income on such amounts, shall be deposited in the General
Collateral Account for application in accordance with the terms of paragraph (d)
of this Section.

               (c)  All amounts which are received by the Collateral Agent (in
its capacity as Collateral Agent) pursuant to terms of the Subordination
Agreement shall be

                                      26
<PAGE>

deposited in the Subordination Collateral Account. While a Notice of Enforcement
is in effect, all amounts on deposit in or required to be deposited in the
Subordination Collateral Account shall be transferred to the Enforcement
Collateral Account.

               (d)  All amounts which are received by the Collateral Agent (in
its capacity as Collateral Agent) which by the terms of any Support Document or
any Secured Instrument are required to be held by the Collateral Agent (other
than amounts required to be deposited in the Enforcement Collateral Account or
the Subordination Collateral Account) shall be deposited in the General
Collateral Account. While a Notice of Enforcement is in effect, all amounts on
deposit in or required to be deposited in the General Collateral Account shall
be transferred to the Enforcement Collateral Account. The Borrower may, by
delivery to the Collateral Agent of a General Funds Release Request, request a
release of General Funds from the General Collateral Account in accordance with
the applicable provisions of the Support Document or Secured Instrument or
Secured Instruments which required such funds to be deposited with the
Collateral Agent (but only to the extent any funds in the General Collateral
Account were deposited in the General Collateral Account pursuant to such
agreements). If no Notice of Enforcement is in effect on the date on which such
General Funds are requested to be released pursuant to the applicable General
Funds Release Request, the Collateral Agent shall release such General Funds in
accordance with such General Funds Release Request. Pending the receipt by the
Collateral Agent of a General Funds Release Request with respect to any General
Funds or a transfer of such General Funds to the Enforcement Collateral Account
as provided above, the Collateral Agent shall invest such funds in Permitted
Investments (and the proceeds thereof and interest thereon shall constitute part
of such General Funds).

               (e)  All amounts deposited in the Collateral Accounts shall be
held by the Collateral Agent subject to the terms hereof and of the Support
Documents and shall constitute Collateral under the Security Agreement. No Loan
Party shall have any rights with respect to, and the Collateral Agent shall have
exclusive dominion and control over, the Collateral Accounts.

                                      27
<PAGE>

               SECTION 5.02. Application of Proceeds. Subject to Section 5.05,
                             -----------------------
all amounts deposited in the Enforcement Collateral Account shall be applied in
the following order of priority:

               FIRST, to the payment of all costs and expenses incurred by the
Collateral Agent (in its capacity as such hereunder or any other Support
Document) in connection with any Support Document or any of the Obligations,
including all court costs and the fees and expenses of its agents and legal
counsel, the repayment of all advances made by the Collateral Agent under any
Support Document on behalf of any Loan Party and any other costs and expenses
incurred in connection with the exercise of any right or remedy hereunder or
under any other Support Document;

               SECOND, to the Secured Parties pro rata in accordance with the
aggregate amounts of the Obligations outstanding on the date of any such
distribution (whether or not due and payable); and

               THIRD, the balance, if any, to the Borrower or its successors and
assigns, or such other Person or Persons as shall be entitled thereto, or as a
court of competent jurisdiction may otherwise direct.

               SECTION 5.03. Time of Payments. All distributions under Section
                             ----------------
5.02 shall be made by the Collateral Agent reasonably promptly after its
receipts of the applicable funds, subject to Section 5.04.

               SECTION 5.04. Application of Amounts Not Distributable. If any
                             -----------------------------------------
Representative or Unrepresented Holder shall inform the Collateral Agent in
writing that no provision is made under the relevant Secured Instrument for the
application of amounts which are to be distributed in respect of Obligations
under such Secured Instrument pursuant to Section 5.02 (whether by virtue of the
applicable Obligations thereunder not being then due and payable or otherwise)
or for the holding of such amounts by or on behalf of such parties pending
application thereof, then the Collateral Agent shall invest such amounts in
Permitted Investments and shall hold such amounts and all proceeds thereof in
the Enforcement Collateral Account, solely for the Secured Parties represented
by such Representative or such Unrepresented Holder, as the case may be, until
such Representative or Unrepresented Holder shall notify the Collateral Agent
that such Obligations

                                      28
<PAGE>

have been paid (in which case such amounts and all proceeds thereof shall be
applied in accordance with the provisions of Section 5.02) or shall request the
delivery thereof by the Collateral Agent for application pursuant to such
Secured Instrument.

               SECTION 5.05. Treatment of Contingent Obligations.
                             ------------------------------------
Notwithstanding the foregoing, distributions under clause SECOND of Section 5.02
shall be made disregarding any Contingent Obligations. If any Contingent
Obligations exist at any time that any amounts are to be distributed to the
Borrower under clause THIRD of Section 5.02, the Collateral Agent shall deposit
such amounts up to an amount equal to such Contingent Obligations in a
collateral account established and maintained at its office located at Two
Avenue DeLefayette, 6th Floor, Boston, MA 02111-1724 (designated the "Contingent
                                                                      ----------
Obligations Collateral Account") for the benefit of the Secured Parties that
------------------------------
have a claim with respect to such Contingent Obligations. The Collateral Agent
shall invest such amounts in Permitted Investments until the Representative of
such Secured Parties or the applicable Unrepresented Holder, as the case may be,
shall notify the Collateral Agent that any or all of the Contingent Obligations
with respect to the Secured Parties represented by such Representative or such
Unrepresented Holder, as the case may be, have become fixed or liquidated (in
which case such amounts up to the amount in the Contingent Obligations
Collateral Account shall be delivered to such Representative or Unrepresented
Holder, as the case may be, to be applied pursuant to the applicable Secured
Instrument) or that such Contingent Obligations have expired or cease to exist
(in which case an amount in the Contingent Obligations Collateral Account in
excess of the Contingent Obligations outstanding at such time shall be applied
in accordance with the provisions of Section 5.02).

               SECTION 5.06. Collateral Agent's Calculations. In making the
                             -------------------------------
determinations and allocations required by Section 5.02, the Collateral Agent
may rely upon certificates as provided in Section 3.02, as to the amounts
payable with respect to Obligations. If any Secured Party receives any amount
pursuant to Section 5.02 in excess of the amount it was entitled to receive
pursuant to Section 5.02 as a result of a demonstrable error in the
determination of the amount of the Obligations, then such Secured Party (by
becoming a Holder of Obligations and accepting the benefits of this Agreement)
agrees to pay

                                      29
<PAGE>

such excess to the Collateral Agent for application in accordance with Section
5.02 as soon as practicable after the existence of such error shall have been
determined. All distributions made by the Collateral Agent pursuant to Section
5.02 shall be (subject to the preceding sentence and to any decree of any court
of competent jurisdiction and to the preceding sentence) final, and the
Collateral Agent shall have no duty to inquire as to the application by any
Representative or Unrepresented Holder of any amounts distributed to them.

                                  ARTICLE VI

                                  Agreements
                                  ----------

               SECTION 6.01. Delivery of Agreements. The Borrower shall deliver
                             -----------------------
to the Collateral Agent, promptly upon the execution thereof, true and complete
copies of (a) all amendments, supplements or other modifications to any Secured
Instrument and (b) each Additional Security Document.

               SECTION 6.02. Information. On a quarterly basis promptly
                             ------------
following the end of each calendar quarter, and from time to time upon the
request of the Collateral Agent (which request may be made by the Collateral
Agent at the reasonable direction of any Secured Party), the Borrower shall
promptly deliver to the Collateral Agent a list, setting forth as of a specified
date not more than 10 days prior to the date of delivery, of the aggregate
outstanding Obligations and Secured Instrument Commitments and the name and
address of each Secured Party (and the name and address of such Secured Party's
Representative, if any) and the respective amounts of Obligations and Secured
Instrument Commitments attributable to each. The Collateral Agent shall provide
a copy of the most recent list delivered to it under this Section to any Secured
Party upon request.

                                  ARTICLE VII

                             The Collateral Agent
                             --------------------

                                      30
<PAGE>

               SECTION 7.01. Appointment; Rights and Duties.  (a) its behalf
                             -------------------------------
and to exercise such powers as are delegated to the Collateral Agent by the
terms of the Support Documents, together with such actions and powers as are
reasonably incidental thereto.

               (b)  Any Person serving as the Collateral Agent hereunder shall
have the same rights and powers in its capacity as a Secured Party as any other
Secured Party and may exercise the same as though it were not the Collateral
Agent, and such Person and its Affiliates may accept deposits from, lend money
to and generally engage in any kind of business with the Borrower or any
Subsidiary or other Affiliate thereof as if it were not the Collateral Agent
hereunder.

               (c)  The Collateral Agent shall not have any duties or
obligations except those expressly set forth in the Support Documents. Without
limiting the generality of the foregoing, (i) the Collateral Agent shall not be
subject to any fiduciary or other implied duties, regardless of whether a Notice
of Enforcement is in effect, (ii) the Collateral Agent shall not have any duty
to take any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated by the Support Documents
that the Collateral Agent is required to exercise in writing by the Required
Secured Parties, and (iii) except as expressly set forth in the Support
Documents, the Collateral Agent shall not have any duty to disclose, and shall
not be liable for the failure to disclose, any information relating to the
Parent, Holdings, the Borrower or the Subsidiary Loan Parties that is
communicated to or obtained by the Person serving as the Collateral Agent or any
of its Affiliates in any capacity. The Collateral Agent shall not be liable for
any action taken or not taken by it with the consent or at the request of the
Secured Parties (or the requisite portion thereof as required by any applicable
provision of this Agreement) or in the absence of its own gross negligence or
wilful misconduct. The Collateral Agent shall be deemed not to have knowledge of
any event that could result in a Notice of Enforcement unless and until a Notice
of Enforcement is given to the Collateral Agent, and the Collateral Agent shall
not be responsible for or have any duty to ascertain or inquire into (A) any
statement, warranty or representation made in or in connection with any Support
Document or Secured Instrument, (B) the contents of any certificate, report or
other document

                                      31
<PAGE>

delivered thereunder or in connection therewith, (C) the performance or
observance of any of the covenants, agreements or other terms or conditions set
forth in any Support Document or Secured Instrument, (D) the validity,
enforceability, effectiveness or genuineness of any Support Document or Secured
Instrument or any other agreement, instrument or document, or (E) the
satisfaction of any condition set forth in any Support Document or Secured
Instrument, other than to confirm receipt of items expressly required to be
delivered to the Collateral Agent.

               (d)  The Collateral Agent shall be entitled to rely upon, and
shall not incur any liability for relying upon, any notice, request,
certificate, consent, statement, instrument, document or other writing believed
by it to be genuine and to have been signed or sent by the proper Person. The
Collateral Agent also may rely upon any statement made to it orally or by
telephone and believed by it to be made by the proper Person, and shall not
incur any liability for relying thereon. The Collateral Agent may consult with
legal counsel (who may be counsel for the Parent or the Borrower), independent
accountants and other experts selected by it, and shall not be liable for any
action taken or not taken by it in accordance with the advice of any such
counsel, accountants or experts.

               (e)  The Collateral Agent may perform any and all its duties and
exercise its rights and powers by or through any one or more sub-agents
appointed by the Collateral Agent. The Collateral Agent and any such sub-agent
may perform any and all its duties and exercise its rights and powers through
their respective Related Parties. The exculpatory provisions of the preceding
paragraphs shall apply to any such sub-agent and to the Related Parties of the
Collateral Agent and any such sub-agent, and shall apply to their respective
activities in connection with the activities as Collateral Agent.

               (f)  Subject to the appointment and acceptance of a successor
Collateral Agent as provided in this paragraph, the Collateral Agent may resign
at any time by notifying each Secured Party and the Borrower. Upon any such
resignation, the Required Committed Secured Parties (or, at any time when a
Notice of Enforcement is in effect, the Required Secured Parties) shall have the
right to appoint a successor. If no successor shall have been so appointed by
the Required Committed Secured Parties (or, if applicable, the Required Secured
Parties) and shall have accepted such

                                      32
<PAGE>

appointment within 30 days after the retiring Collateral Agent gives notice of
its resignation, then the retiring Collateral Agent may, on behalf of the
Secured Parties, appoint a successor Collateral Agent which shall be a bank with
an office in New York, New York or an Affiliate of any such bank. Upon the
acceptance of its appointment as Collateral Agent hereunder by a successor, such
successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Collateral Agent, and the retiring
Collateral Agent shall be discharged from its duties and obligations hereunder.
The fees payable by the Borrower to a successor Collateral Agent shall be the
same as those payable to its predecessor unless otherwise agreed between the
Borrower and such successor. After the Collateral Agent's resignation hereunder,
the provisions of this Article shall continue in effect for the benefit of such
retiring Collateral Agent, its sub-agents and their respective Related Parties
in respect of any actions taken or omitted to be taken by any of them while it
was acting as Collateral Agent.

          (g)  Each Secured Party acknowledges that it has, independently and
without reliance upon the Collateral Agent or any other Secured Party and based
on such documents and information as it has deemed appropriate, made its own
credit analysis and decision to extend credit to the Borrower pursuant to the
applicable Secured Instrument and enter into this Agreement. Each Secured Party
also acknowledges that it will, independently and without reliance upon the
Collateral Agent or any other Secured Party and based on such documents and
information as it shall from time to time deem appropriate, continue to make its
own decisions in taking or not taking action under or based upon this Agreement,
any other Support Document or related agreement or any document furnished
hereunder or thereunder.

          SECTION 7.02. Expenses; Indemnity; Damage Waiver. (a) The Borrower
                        -----------------------------------
shall pay (i) all costs and expenses incurred by the Collateral Agent, including
the fees, charges and disbursements of counsel for the Collateral Agent, in
connection with the negotiation, preparation, execution and delivery of the
Support Documents, and (ii) all costs and expenses incurred by the Collateral
Agent, including the fees, charges and disbursements of any counsel, consultants
or appraisers for the Collateral Agent, in connection with (A) the enforcement
or protection of its rights in connection with

                                      33
<PAGE>

the Support Documents, including its rights under this Section and (B) the
administration of, and any amendments, modifications, waivers or supplements of
or to the provisions of, any of the Support Documents.

          (b)  The Borrower shall indemnify the Collateral Agent and each of its
Related Parties (each such Person being called an "Indemnitee") against, and
                                                   ----------
hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including the fees, charges and disbursements
of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the
execution or delivery of any Support Document or Secured Instrument or any other
agreement or instrument contemplated hereby, or the performance by the parties
to the Support Documents or Secured Instruments of their respective obligations
thereunder, (ii) any extension of credit under any Secured Instrument or the use
of the proceeds therefrom, (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by the Borrower or
any of the Subsidiary Loan Parties or at which any Collateral is located, or any
Environmental Liability related in any way to the Borrower or any of the
Subsidiary Loan Parties, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory and regardless of whether any Indemnitee is a
party thereto; provided that such indemnity shall not, as to any Indemnitee, be
               --------
available to the extent that such losses, claims, damages, liabilities or
related expenses have resulted from the gross negligence or wilful misconduct of
such Indemnitee.

          (c)  To the extent that the Borrower fails to pay any amount required
to be paid by it to the Collateral Agent under paragraph (a) or (b) of this
Section, each Secured Party severally agrees to pay to the Collateral Agent such
Secured Party's pro rata share (determined as of the time that the applicable
unreimbursed expense or indemnity payment is sought) of such unpaid amount;
provided that the unreimbursed expense or indemnified loss, claim, damage,
--------
liability or related expense, as the case may be, was incurred by or asserted
against the Collateral Agent in its capacity as such. For purposes hereof, a
Secured Party's pro rata share shall be determined based upon its share of the
aggregate amount of outstanding

                                      34
<PAGE>

Principal Obligations and Secured Instrument Commitments at the time.

          (d)  To the extent permitted by applicable law, the Borrower shall not
assert, and hereby waives, any claim against any Indemnitee, on any theory of
liability, for special, indirect, consequential or punitive damages (as opposed
to direct or actual damages) arising out of, in connection with, or as a result
of, this Agreement or any agreement or instrument contemplated hereby.

          (e)  All amounts due under this Section shall be payable not later
than 30 days after written demand therefor.

                                 ARTICLE VIII

                        Representations and Warranties
                        ------------------------------

          The Borrower represents and warrants to the Secured Parties that:

          SECTION 8.01. Organization; Powers. Each Loan Party is duly organized,
                        --------------------
validly existing and in good standing under the laws of the jurisdiction of its
organization, has all requisite power and authority to carry on its business as
now conducted and, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a material adverse
effect of the Borrower and the Subsidiary Loan Parties taken as a whole, is
qualified to do business in, and is in good standing in, every jurisdiction
where such qualification is required.

          SECTION 8.02. Authorization; Enforceability. The execution delivery
                        -----------------------------
and performance by each Loan Party of the Support Documents to which it is a
party are within such Loan Party's corporate powers and have been duly
authorized by all necessary company or corporate, as the case may be, and, if
required, stockholder action. This Agreement and each other Support Document has
been duly executed and delivered by each Loan Party that is a party thereto and
constitutes a legal, valid and binding obligation of such Loan Party (as the
case may be), enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws affecting
creditors' rights generally and subject to general principles of equity,

                                      35
<PAGE>

regardless of whether considered in a proceeding in equity or at law.

          SECTION 8.03. Governmental Approvals; No Conflicts. The execution,
                        ------------------------------------
delivery and performance by each Loan Party of the Support Documents to which it
is a party (a) do not require any consent or approval of, registration or filing
with, or any other action by, any Governmental Authority, except such as have
been obtained or made and are in full force and effect and except filings
necessary to perfect Liens created under the Security Documents, (b) will not
violate any applicable law or regulation or the charter, by-laws or other
organizational documents of any Loan Party or any order of any Governmental
Authority, (c) will not violate or result in a default under any indenture,
agreement or other instrument binding upon any Loan Party or its assets, or give
rise to a right thereunder to require any payment to be made by any Loan Party,
and (d) will not result in the creation or imposition of any Lien on any asset
of any Loan Party, except Liens created under the Security Documents.

                                  ARTICLE IX

                          Intercreditor Arrangements
                          --------------------------

          SECTION 9.01. Security Interests. The Collateral Agent and each of the
                        -------------------
Secured Parties hereby agree that the Liens and security interests granted to
the Collateral Agent under the Security Documents, and the Guarantees provided
under the Guarantee Agreement and the Parent Guarantee Agreement, and the other
rights, remedies, powers and privileges under the Support Documents shall be
treated, as among the Secured Parties, as having equal priority and shall at all
times be shared by the Secured Parties as provided herein.

          SECTION 9.02. Turnover of Collateral and Certain Payments. If any
                        --------------------------------------------
Secured Party (i) acquires custody, control or possession of any Collateral or
proceeds therefrom or (ii) receives any payment pursuant to enforcement of the
Guarantee Agreement or the Parent Guarantee Agreement, in each case other than
pursuant to the terms of this Agreement, then such Secured Party shall promptly
cause such Collateral, proceeds or payments to be delivered to or put in the
custody, possession or control of the Collateral Agent for disposition or
distribution in

                                      36
<PAGE>

accordance with the provisions of Article V. Until such time as the provisions
of the immediately preceding sentence have been complied with, such Secured
Party shall be deemed to hold such Collateral, proceeds or payments in trust for
the parties entitled thereto hereunder. Notwithstanding the foregoing, but
subject to the requirements of Sections 9.07 and 9.08, no Secured Party shall be
required to deliver to or put in the custody, possession or control of the
Collateral Agent or to hold in trust as specified in the preceding sentence any
amount of any Obligation paid or prepaid by the Borrower to it (and not obtained
by it through any sale of or other realization upon any Collateral or by
enforcement of its rights under the Guarantee Agreement or the Parent Guarantee
Agreement as provided herein and in the Support Documents) in accordance with
the terms of the applicable Secured Instrument.

          SECTION 9.03. Release of Collateral and Guarantees. (a) In connection
                        ------------------------------------
with any sale, transfer or disposition of any Collateral to any Person other
than the Borrower or any Subsidiary Loan Party that does not violate any Secured
Instrument, the Secured Parties agree that any Liens on such Collateral created
pursuant to the Security Documents will be released upon the delivery of
evidence satisfactory to the Collateral Agent that such sale, transfer or
disposition (and the release of such Liens and, if applicable, any guarantee of
the Obligations) is in compliance with the requirements of each Secured
Instrument (including a certificate from a Financial Officer to such effect). In
the event any such sale, transfer or disposition to a Person other than the
Parent or any subsidiary thereof (including the Borrower or any Subsidiary Loan
Party) shall be of 100% of the Equity Interests of a Subsidiary Loan Party, the
Secured Parties hereby authorize the Collateral Agent upon the delivery of such
evidence to release such Subsidiary and its assets from its obligations under
and the Liens created by the Support Documents and to execute amendments,
releases and other documents in form and substance satisfactory to the
Collateral Agent confirming such release.

          (b)  Collateral may be released in connection with the exercise of any
rights, powers or remedies by the Collateral Agent pursuant to and in accordance
with Section 4.02 and such release shall not require any approval under this
Section.

                                      37
<PAGE>

          (c)  The Secured Parties hereby authorize the Collateral Agent to
execute releases and other documents in form and substance satisfactory to the
Collateral Agent in respect of any release of Collateral permitted under this
Section.

          SECTION 9.04. Additional Collateral. Each of the Secured Parties
                        ---------------------
hereby covenants and agrees that it (a) will not accept any Guarantee of any of
the Obligations by any Loan Party or an Affiliate thereof or any Person
providing such Guarantee on behalf of a Loan Party or an Affiliate thereof
unless such Person's Guarantee is provided pursuant to the Guarantee Agreement
or the Parent Guarantee Agreement or otherwise Guarantees the payment of all the
Obligations on a pari passu basis and (b) will not take any security interest in
                 ---- -----
or Lien on or assignment of any assets to secure any of the Obligations unless
such security interest or Lien or assignment is granted to the Collateral Agent
to secure the payment of all the Obligations on a pari passu basis pursuant to
                                                  ---- -----
an Additional Security Document; provided that the foregoing shall not apply to
                                 --------
any insurance or other credit support acquired by a Secured Party at its own
expense from a Person (other than any Loan Party or an Affiliate thereof or a
Person acting on behalf of a Loan Party or an Affiliate thereof) with respect to
the Obligations.

          SECTION 9.05. Purchase of Collateral. Any Secured Party may purchase
                        ----------------------
Collateral at any public sale of such Collateral pursuant to any of the Security
Documents and to the extent, but only to the extent, approved by the Required
Secured Parties (determined for this purpose without giving effect to the
Obligations owed to the Secured Party that is making such purchase, unless it is
the only Holder at the time) may make payment on account thereof by using any
Obligation then due and payable to such Secured Party from the Person which
granted a security interest in such Collateral as a credit against the purchase
price.

          SECTION 9.06. Further Assurances, etc. Each party hereto shall execute
                        ------------------------
and deliver such other documents and instruments, in form and substance
reasonably satisfactory to the other parties hereto, and shall take such other
action, in each case as any other party hereto may reasonably have requested (at
the cost and expense of the Borrower which agrees to pay such costs and
expenses), to effectuate and carry out the provisions of this

                                      38
<PAGE>

Agreement and the other Support Documents, including by recording or filing in
such places as the requesting party may deem desirable, this Agreement or such
other documents or instruments.

          SECTION 9.07. Restrictions on Prepayments and Purchases of
                        --------------------------------------------
Indebtedness. If on any date the Borrower:
-------------

          (a)  shall prepay or purchase any Indebtedness outstanding under any
Secured Instrument; and

          (b)  shall not within three Business Days thereafter prepay or
purchase the Indebtedness outstanding under all Secured Instruments ratably in
accordance with the respective aggregate principal amount then outstanding
thereunder;

any Secured Party that shall have had its Indebtedness so prepaid or purchased
in an amount in excess of that which it would have received if the Borrower had
made prepayments or purchases ratably in respect of all Secured Parties will, on
behalf of the Borrower, pay any excess amount received by it ratably to the
other Secured Parties entitled thereto in order to prepay or purchase on behalf
of the Borrower the Indebtedness of such other Secured Parties (and any such
excess so paid by any Secured Party shall be deemed not to have been paid by the
Borrower to such Secured Party); provided that the foregoing shall not apply to
                                 --------
any refinancing of Indebtedness under any Secured Instrument that does not
require ratable prepayment of Loans, Nortel Loans or Ericsson Loans under
Section 2.09 of the Credit Agreement, the Nortel Credit Agreement or the
Ericsson Credit Agreement, respectively (as each such agreement is in effect on
the date hereof). The Borrower irrevocably authorizes and directs each Secured
Party to take the actions on its behalf specified in this Section 9.07.

          SECTION 9.08. Payment of Amounts Owing under Secured Instruments. If
                        --------------------------------------------------
on any date:

          (a)  any amount shall be due and owing under more than one Secured
Instrument;

          (b)  the Borrower shall not pay all such amounts as are then due and
owing; and

                                      39
<PAGE>

          (c)  the Borrower shall not pay such amounts ratably, in accordance
with the respective amounts then due and owing thereunder;

any Secured Party that shall have been paid an amount in excess of the payment
that it would have received if the Borrower had paid amounts owing by it ratably
will, on behalf of the Borrower, pay such excess ratably to the other Secured
Parties entitled thereto (and any such excess so paid by any Secured Party shall
be deemed not to have been paid by the Borrower to such Secured Party); provided
                                                                        --------
that, if a Notice of Enforcement is in effect as of such date, then, for all
purposes of this Section 9.08, all outstanding Obligations shall be deemed due
and owing whether or not they are actually due and owing (e.g., whether or not
                                                          -----
the maturity of such Obligations has been accelerated or otherwise matured). The
Borrower irrevocably authorizes and directs each Secured Party to take the
actions on its behalf specified in this Section 9.08.

          SECTION 9.09. Certain Amendments to Credit Agreement. Notwithstanding
                        --------------------------------------
any provision to the contrary in the Credit Agreement, no amendment or waiver of
any encumbrance or restriction in the Credit Agreement on the ability of the
Borrower, Holdings or any Subsidiary Loan Party to:

          (i)    pay dividends or make any other distributions permitted by
     applicable law on any Equity Interest of the Borrower, Holdings or any
     Subsidiary Loan Party;

          (ii)   pay any Indebtedness owed to the Parent or any subsidiary of
     the Parent;

          (iii)  make loans or advances to the Parent or any subsidiary of the
     Parent; or

          (iv)   transfer any of its property or assets to the Parent or any
     subsidiary of the Parent,

shall be effective unless the Required Committed Credit Facility Parties under
each Credit Facility shall have consented to such amendment or waiver.

          SECTION 9.10. Payments under ChaseTel Subordination Agreement. If any
                        -----------------------------------------------
Lender or the Administrative Agent receives any payments under the ChaseTel
Subordination Agreement, then such Lender or the

                                      40
<PAGE>

Administrative Agent shall share the benefits of such payments ratably with the
other Secured Parties by either (a) payment to the Collateral Agent for
distribution under Section 5.02, if permitted, or (b) applying such payment to
pay Credit Facility Obligations and then purchasing participations in the
Principal Obligations then outstanding of the other Secured Parties to the
extent necessary so that the benefit of all such payments shall be shared by all
Secured Parties ratably in accordance with the aggregate amount of Principal
Obligations then outstanding.

                                   ARTICLE X

                             Benefit of Agreement
                             --------------------

          This Agreement is being executed and delivered by the Persons whose
names appear on the signature pages below and by such other Persons as become
parties hereto by the execution and delivery of a Permitted Additional
Obligations Designation pursuant to Section 2.01 and by accepting and assuming
the rights, benefits, duties and obligations of a Secured Party hereunder as
provided in such Section and such Permitted Additional Obligations Designation,
but shall benefit, in addition to such Persons, each other Secured Party
represented by a Representative (including the Lenders, the Nortel Lenders and
the Ericsson Lenders).

                                  ARTICLE XI

                                 Miscellaneous
                                 -------------

          SECTION 11.01. Notices. Except in the case of notices and other
                         -------
communications expressly permitted to be given by telephone, all notices and
other communications provided for herein shall be in writing and shall be
delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by telecopy, as follows:

          (a)  if to the Borrower, to it at 10307 Pacific Center Court, San
Diego, California 92121, Attention of President (Telecopy No. (619) 882-6010);

                                      41
<PAGE>

          (b)  if to the Collateral Agent, to it at Two Avenue DeLefayette, 6th
Floor, Boston, MA 02111-1724, Attention of Patrick Thibedeau (Telecopy No. 617-
662-1460);

          (c)  if to the Administrative Agent, to it at 600 Mountain Avenue,
Murray Hill, New Jersey 07974, Attention of Assistant Treasurer-Project Finance
(Telecopy No. (908) 582-3101);

          (d)  if to the Nortel Agent, to it at Nortel Networks Inc., Mail Stop
991 15 A40, 2221 Lakeside Blvd., Richardson, Texas 75082-4399, Attention of
Robert D. Beiter, Director, Customer Finance North America (Telecopy No. (972)
684-3679);

          (e)  if to the Ericsson Agent, to it at Telefonvagen 30, Stockholm 126
25, Sweden, Attention: President (Telecopy No. +468-719-0500), with a copy to
Ericsson Inc. at 740 East Campbell Road, Richardson, Texas 75081 Attention:
Director of Customer Finance (Telecopy No. 972-583-1858); and

          (f)  if to any other Secured Party, to it at its address (or telecopy
number) set forth in the applicable Permitted Additional Obligation Designation.

Any party hereto may change its address or telecopy number for notices and other
communications hereunder by notice to the other parties hereto. All notices and
other communications given to any party hereto in accordance with the provisions
of this Agreement shall be deemed to have been given on the date of receipt.

          SECTION 11.02. Waivers; Amendments. (a) No failure or delay by the
                         -------------------
Collateral Agent in exercising any right or power hereunder or under any other
Support Document shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Collateral Agent hereunder and under the other Support
Documents are cumulative and are not exclusive of any rights or remedies that it
would otherwise have. No waiver of any provision of any Support Document or
consent to any departure by any Loan Party therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section,
and

                                      42
<PAGE>

then such waiver or consent shall be effective only in the specific instance and
for the purpose for which given.

               (b)  Neither this Agreement nor any other Support Document nor
any provision hereof or thereof may be waived, amended or modified except, in
the case of this Agreement, pursuant to an agreement or agreements in writing
entered into by the Borrower and the Representatives and/or Unrepresented
Holders representing the Required Committed Secured Parties (or, at any time
when a Notice of Enforcement is in effect, the Required Secured Parties) and the
Required Committed Credit Facility Parties in respect of each Credit Facility
or, in the case of any other Support Document, pursuant to an agreement or
agreements in writing entered into by the Collateral Agent and the Loan Party or
Loan Parties that are parties thereto with the consent of the Required Committed
Secured Parties (or, at any time when a Notice of Enforcement is in effect, the
Required Secured Parties) and the Required Committed Credit Facility Parties in
respect of each Credit Facility; provided that no such agreement shall (i)
                                 --------
adversely affect any of the Collateral Agent's rights, immunities or rights to
indemnification hereunder or under any Support Document or expand its duties
hereunder or under any Support Document, without the prior written consent of
the Collateral Agent, (ii) modify any provision hereof which is intended to
provide for the equal and ratable security of all Obligations without the prior
written consent of all Secured Parties, (iii) release all or any substantial
part of the Collateral from the Liens of the Security Documents (except as
expressly provided in Section 9.03), without the prior written consent of each
Secured Party, (iv) release Holdings, any Subsidiary Loan Party or the Parent
from its Guarantee under the Guarantee Agreement or the Parent Guarantee
Agreement (except as expressly provided in Section 9.03) or limit or condition
its obligations thereunder, without the prior written consent of each Secured
Party, or (v) change the definitions of "Credit Facility Obligations", "Ericsson
Facility Obligations", "Nortel Facility Obligations", "Obligations", "Permitted
Additional Obligations", "Required Committed Secured Parties", "Required Credit
Facility Parties", "Required Non-Vendor Secured Parties", "Required Secured
Parties" or this Section, Section 4.02, Section 4.03 or Section 9.03 without the
prior written consent of each Secured Party. Notwithstanding the foregoing, the
Collateral Agent and the Borrower and, in the case of the Guarantee Agreement or
the Parent Guarantee Agreement, any guarantor party to the

                                      43
<PAGE>

Guarantee Agreement or the Parent Guarantee Agreement, may enter into one or
more agreements supplemental to the applicable Support Documents, in form and
substance satisfactory to the Collateral Agent, to add any guarantor of the
Obligations or any grantor to any Security Document.

          SECTION 11.03. Counterparts. This Agreement may be executed in
                         ------------
counterparts (and by different parties hereto on different counterparts), each
of which shall constitute an original, but all of which when taken together
shall constitute a single contract. Delivery of an executed counterpart of a
signature page of this Agreement by telecopy shall be effective as delivery of a
manually executed counterpart of this Agreement.

          SECTION 11.04. Severability. Any provision of this Agreement held to
                         ------------
be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or
unenforceability without affecting the validity, legality and enforceability of
the remaining provisions hereof; and the invalidity of a particular provision in
a particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

          SECTION 11.05. Governing Law; Jurisdiction; Consent to Service of
                         --------------------------------------------------
Process. (a) This Agreement shall be construed in accordance with and governed
-------
by the law of the State of New York.

          (b)  The Borrower hereby irrevocably and unconditionally submits, for
itself and its property, to the nonexclusive jurisdiction of the Supreme Court
of the State of New York sitting in New York County and of the United States
District Court of the Southern District of New York, and any appellate court
from any thereof, in any action or proceeding arising out of or relating to any
Support Document, or for recognition or enforcement of any judgment, and each of
the parties hereto hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court. Each
of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Support Document shall affect any right that the

                                      44
<PAGE>

Collateral Agent or any Secured Party may otherwise have to bring any action or
proceeding relating to this Agreement or any other Support Document against the
Borrower or their properties in the courts of any jurisdiction.

          (c)  The Borrower hereby irrevocably and unconditionally waives, to
the fullest extent it may legally and effectively do so, any objection which it
may now or hereafter have to the laying of venue of any suit, action or
proceeding arising out of or relating to this Agreement or any other Support
Document in any court referred to in paragraph (b) of this Section. Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by
law, the defense of an inconvenient forum to the maintenance of such action or
proceeding in any such court.

          (d)  Each party to this Agreement irrevocably consents to service of
process in the manner provided for notices in Section 11.01. Nothing in this
Agreement or any other Support Document will affect the right of any party to
this Agreement to serve process in any other manner permitted by law.

          SECTION 11.06. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY
                         --------------------
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR ANY OTHER SUPPORT DOCUMENT (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          SECTION 11.07. Headings. Article and Section headings used herein are
                         --------
for convenience of reference only, are not part of this Agreement and shall not
affect the construction of, or be taken into consideration in interpreting, this
Agreement.

          SECTION 11.08. Successors and Assigns. (a) Whenever in this Agreement
                         ----------------------
any of the parties hereto is referred to, such reference shall be deemed to
include the

                                      45
<PAGE>

successors and assigns of such party (including, in the case of any Secured
Party, each transferee or assignee of Obligations held by it). Without limiting
the generality of the foregoing, this Agreement shall be binding upon each
transferee or assignee of any Secured Party.

          (b)  The Borrower shall not assign or delegate any of its rights or
duties hereunder or any of its interest herein without the prior written consent
of each Secured Party, and any purported assignment or delegation in
contravention of this paragraph shall be void.

          SECTION 11.09. Termination. This Agreement shall automatically
                         -----------
terminate when (i) the Liens and security interests granted under the Security
Documents have terminated and (ii) the Collateral has been released and the
Obligations have been indefeasibly paid and performed in full and all Secured
Instrument Commitments shall have terminated; provided that the provisions of
                                              --------
Section 7.02 shall not be affected by any such termination.

          SECTION 11.10. Complete Agreement. (a) This Agreement constitutes the
                         ------------------
entire agreement between the parties hereto with respect to the subject matter
hereof and supersedes all prior representations, negotiations, writings,
memoranda and agreements.

          (b)  Upon the execution and delivery of counterparts of this Agreement
by the Borrower, the Collateral Agent and Representatives and Unrepresented
Holders representing each Secured Party as of the date hereof, the Existing
Agreement shall be superseded and amended and restated in the form of this
Agreement.

          (c)  Lucent Technologies Inc., Societe Generale, Nortel Networks Inc.
and Ericsson Credit AB are the only Lenders, Nortel Lenders and Ericsson Lenders
as of the date hereof and are executing this Agreement in their individual
capacities in order to acknowledge their consent to the amendment and
restatement of the Existing Agreement as provided herein.

                                      46
<PAGE>

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

                                           CRICKET COMMUNICATIONS, INC.
                                           (formerly known as Cricket
                                           Wireless Communications, Inc.),

                                             by
                                               _______________________________
                                               Name:
                                               Title:

                                           STATE STREET BANK AND TRUST COMPANY,
                                           as Collateral Agent,

                                             by
                                               _________________________________
                                               Name:
                                               Title:

                                           LUCENT TECHNOLOGIES INC.,
                                           individually and as
                                           Administrative Agent under the
                                           Credit Agreement,

                                             by

                                               _______________________________
                                               Name:
                                               Title:

                                           NORTEL NETWORKS INC.,
                                           individually and as
                                           Administrative Agent under the
                                           Nortel Credit Agreement,

                                             by

                                      47

<PAGE>

                                              ________________________________
                                              Name:
                                              Title:

                                           SOCIETE GENERALE,

                                             by

                                              ________________________________
                                              Name:
                                              Title:

                                           ERICSSON CREDIT AB,
                                           individually and as
                                           Administrative Agent under the
                                           Ericsson Credit Agreement,

                                             by

                                              ________________________________
                                              Name:
                                              Title:

                                             by

                                              ________________________________
                                              Name:
                                              Title:

                                      48
<PAGE>

          The undersigned are parties to the other Support Documents and
acknowledge and agree to the changes thereto set forth herein and agree to be
bound by this Agreement.

                                           LEAP WIRELESS INTERNATIONAL,

                                             by

                                              ________________________________
                                              Name:
                                              Title:

                                           EACH SUBSIDIARY OF THE

                                             by

                                              ________________________________
                                              Name:
                                              Title:

                                           EACH LICENSE SUBSIDIARY PARTY
                                           TO THE OTHER SUPPORT DOCUMENTS,

                                             by

                                              ________________________________
                                              Name:
                                              Title:

                                      49
<PAGE>

                                                                       EXHIBIT A

                                    FORM OF
                 PERMITTED ADDITIONAL OBLIGATIONS DESIGNATION

                                                                    [Date]

To:  [           ], as Collateral Agent

Re:  Amended and Restated Collateral Agency and Intercreditor Agreement, dated
     as of October 20, 2000, among CRICKET COMMUNICATIONS, INC. (formerly known
     as Cricket Wireless Communications, Inc.), STATE STREET BANK AND TRUST
     COMPANY, as Collateral Agent, and the Representatives and Unrepresented
     Holders referred to therein (the "Collateral Agency and Intercreditor
     Agreement").

          Reference is hereby made to the Collateral Agency and Intercreditor
Agreement. Capitalized terms which are defined in the Collateral Agency and
Intercreditor Agreement are used herein as therein defined.

          In accordance with Section 2.01 of the Collateral Agency and
Intercreditor Agreement, the following Indebtedness for borrowed money of the
Borrower are hereby added as Permitted Additional Obligations thereunder.

          [DESCRIBE INDEBTEDNESS]

Attached hereto is a true and complete copy of each agreement (together with all
schedules, exhibits, annexes, appendices and other attachments thereto),
constituting the applicable Secured Instruments relating to such Permitted
Additional Obligations.

          The undersigned is [the Secured Party] [the Representative of the
Secured Parties] in respect of such Permitted Additional Obligations and hereby
acknowledges receipt of a copy of the Collateral Agency and Intercreditor
Agreement. [The undersigned agrees that, upon execution and delivery hereof, it
shall be a party to the Collateral Agency and Intercreditor Agent and shall have
all the rights and obligations of a Secured Party

                                      50
<PAGE>

under the Collateral Agency and Intercreditor Agreement in accordance with the
terms thereof.] [The undersigned represents that it has been appointed as the
Representative under the Secured Instruments referred to above on behalf of the
Holders thereunder, with the power to become a party to the Collateral Agency
and Intercreditor Agreement on behalf of such Holders, and by the undersigned's
execution and delivery hereof, each such Holder shall become a party to the
Collateral Agency and Intercreditor Agreement and shall have all the rights and
obligations of a Secured Party under the Collateral Agency and Intercreditor
Agreement in accordance with the terms thereof].

          All communications and notices under the Collateral Agency and
Intercreditor Agreement to the [Secured Party] [Representative and the Holders
under the Secured Instruments referred to above] shall be given to such Person
at the address set forth on Schedule I hereto.

[        ]

by
Name:
Title:

[Secured Party]  [Representative]

by
Name:
Title:

CRICKET COMMUNICATIONS, INC.
(formerly known as Cricket Wireless
Communications, Inc.),

by
Name:
Title:

                                      51
<PAGE>

                                                                      SCHEDULE I

                                ADDRESS[ES] OF
                        [SECURED PARTY] [REPRESENTATIVE
                             AND SECURED PARTIES]

                                      52

<PAGE>

1

                                                                       EXHIBIT C
               GUARANTEE AGREEMENT dated as of September 17, 1999,
       among CRICKET COMMUNICATIONS, INC., a Delaware corporation
       ("Holdings"), each of the subsidiaries of Cricket Wireless
       Communications, Inc., a Delaware corporation (the "Borrower")
       listed on Schedule I hereto (each such subsidiary individually,
       a "Subsidiary" and, collectively, the "Subsidiaries"), each of
       the subsidiaries of Leap Wireless International, Inc., a
       Delaware corporation (the "Parent") listed on Schedule I hereto
       (each such subsidiary individually, a "License Subsidiary" and,
       collectively, the "License Subsidiaries"; and Holdings, each
       Subsidiary and License Subsidiary, individually, a "Guarantor"
       and, collectively, the "Guarantors") and STATE STREET BANK AND
       TRUST COMPANY, as collateral agent (in such capacity, the
       "Collateral Agent"), for the Secured Parties.

   Reference is made to the Collateral Agency and Intercreditor Agreement dated
as of September 17, 1999 (as amended, supplemented or otherwise modified from
time to time, the "Collateral Agency and Intercreditor Agreement") among the
Borrower, the Representatives and Unrepresented Holders referred to therein and
the Collateral Agent. Capitalized terms used herein and not defined herein shall
have the meanings assigned to such terms in the Collateral Agency and
Intercreditor Agreement. Each Guarantor acknowledges receipt of a true and
correct copy of the Collateral Agency and Intercreditor Agreement and agrees to
the terms thereof.

   The Lenders have agreed to make Loans to the Borrower pursuant to, and upon
the terms and subject to the conditions specified in, the Credit Agreement. Each
of the Guarantors is a direct or indirect subsidiary of the Borrower or the
Parent and acknowledges that it will derive substantial benefit from the making
of the Loans by the Lenders. The obligations of the Lenders to make Loans are
conditioned on, among other things, the execution and delivery by the Guarantors
of a Guarantee Agreement in the form hereof. As consideration therefor and in
order to induce the Lenders to make Loans, the Guarantors are willing to execute
this Agreement. The Borrower may from time to time incur Permitted Additional
Obligations that are required to be guaranteed pursuant to the terms hereof.
<PAGE>

2

   Accordingly, the parties hereto agree as follows:

   SECTION 1. Guarantee. Each Guarantor unconditionally guarantees, jointly with
the other Guarantors and severally, as a primary obligor and not merely as a
surety, the due and punctual payment of the Obligations, when and as due,
whether at maturity, by acceleration, upon one or more dates set for prepayment
or otherwise. Each Guarantor further agrees that the Obligations may be extended
or renewed, in whole or in part, without notice to or further assent from it,
and that it will remain bound upon its guarantee notwithstanding any extension
or renewal of any Obligation.

   Anything contained in this Agreement to the contrary notwithstanding, the
obligations of each Guarantor hereunder shall be limited to a maximum aggregate
amount equal to the greatest amount that would not render such Guarantor's
obligations hereunder subject to avoidance as a fraudulent transfer or
conveyance under Section 548 of Title 11 of the United States Code or any
provisions of applicable state law (collectively, the "Fraudulent Transfer
Laws"), in each case after giving effect to all other liabilities of such
Guarantor, contingent or otherwise, that are relevant under the Fraudulent
Transfer Laws (specifically excluding, however, any liabilities of such
Guarantor (a) in respect of intercompany indebtedness to the Borrower or
Affiliates of the Borrower to the extent that such indebtedness would be
discharged in an amount equal to the amount paid by such Guarantor hereunder and
(b) under any Guarantee of senior unsecured indebtedness or Indebtedness
subordinated in right of payment to the Obligations which Guarantee contains a
limitation as to maximum amount similar to that set forth in this paragraph,
pursuant to which the liability of such Guarantor hereunder is included in the
liabilities taken into account in determining such maximum amount) and after
giving effect as assets to the value (as determined under the applicable
provisions of the Fraudulent Transfer Laws) of any rights to subrogation,
contribution, reimbursement, indemnity or similar rights of such Guarantor
pursuant to (i) applicable law or (ii) any agreement providing for an equitable
allocation among such Guarantor and other Affiliates of the Borrower of
obligations arising under Guarantees by such parties (including the Indemnity,
Subrogation and Contribution Agreement).
<PAGE>

3

   SECTION 2. Obligations Not Waived. To the fullest extent permitted by
applicable law, each Guarantor waives presentment to, demand of payment from and
protest to the Borrower of any of the Obligations, and also waives notice of
acceptance of its guarantee and notice of protest for nonpayment. To the fullest
extent permitted by applicable law, the obligations of each Guarantor hereunder
shall not be affected by (a) the failure of the Collateral Agent or any other
Secured Party to assert any claim or demand or to enforce or exercise any right
or remedy against the Borrower or any other Guarantor under the provisions of
any Support Document or Secured Instrument or otherwise, (b) any rescission,
waiver, amendment or modification of, or any release from any of the terms or
provisions of this Agreement, any other Support Document, any Secured
Instrument, any Guarantee or any other agreement, including with respect to any
other Guarantor under this Agreement or (c) the failure to perfect any security
interest in, or the release of, any of the security held by or on behalf of the
Collateral Agent or any other Secured Party.

   SECTION 3. Security. Each of the Guarantors authorizes the Collateral Agent
and each of the other Secured Parties, to (a) take and hold security for the
payment of this Guarantee and the Obligations and exchange, enforce, waive and
release any such security, (b) apply such security and direct the order or
manner of sale thereof as they in their sole discretion may determine and (c)
release or substitute any one or more endorsees or other guarantors or other
obligors.

   SECTION 4. Guarantee of Payment. Each Guarantor further agrees that its
guarantee hereunder constitutes a guarantee of payment when due and not of
collection, and waives any right to require that any resort be had by the
Collateral Agent or any other Secured Party to any of the security held for
payment of the Obligations or to any balance of any deposit account or credit on
the books of the Collateral Agent or any other Secured Party in favor of the
Borrower or any other Person.

   SECTION 5. No Discharge or Diminishment of Guarantee. The obligations of each
Guarantor hereunder shall not be subject to any reduction, limitation,
impairment or termination for any reason (other than the indefeasible
<PAGE>

4

payment in full in cash of all the Obligations), including any claim of waiver,
release, surrender, alteration or compromise of any of the Obligations, and
shall not be subject to any defense or setoff, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality or
unenforceability of the Obligations or otherwise. Without limiting the
generality of the foregoing, the obligations of each Guarantor hereunder shall
not be discharged or impaired or otherwise affected by the failure of the
Collateral Agent or any other Secured Party to assert any claim or demand or to
enforce any remedy under any Support Document, any Secured Instrument or any
other agreement, by any waiver or modification of any provision of any thereof,
by any default, failure or delay, wilful or otherwise, in the performance of the
Obligations, or the failure to perfect any security interest in, or the release
of, any of the security held by or on behalf of the Collateral Agent or any
other Secured Party, or by any other act or omission that may or might in any
manner or to any extent vary the risk of any Guarantor or that would otherwise
operate as a discharge of each Guarantor as a matter of law or equity (other
than the indefeasible payment in full in cash of all the Obligations).

   SECTION 6. Defenses of Borrower Waived. To the fullest extent permitted by
applicable law, each of the Guarantors waives any defense based on or arising
out of any defense of the Borrower or the unenforceability of the Obligations or
any part thereof from any cause, or the cessation from any cause of the
liability of the Borrower, other than the final and indefeasible payment in full
in cash of all the Obligations. The Collateral Agent and the other Secured
Parties may, at their election, foreclose on any security held by one or more of
them by one or more judicial or nonjudicial sales, accept an assignment of any
such security in lieu of foreclosure, compromise or adjust any part of the
Obligations, make any other accommodation with the Borrower or any other
guarantor or exercise any other right or remedy available to them against the
Borrower or any other guarantor, without affecting or impairing in any way the
liability of any Guarantor hereunder except to the extent the Obligations have
been fully, finally and
<PAGE>

5

indefeasibly paid in cash. To the fullest extent permitted by applicable law,
each of the Guarantors waives any defense arising out of any such election even
though such election operates, pursuant to applicable law, to impair or to
extinguish any right of reimbursement or subrogation or other right or remedy of
such Guarantor against the Borrower or any other Guarantor or guarantor, as the
case may be, or any security.

   SECTION 7. Agreement to Pay; Subordination. In furtherance of the foregoing
and not in limitation of any other right that the Collateral Agent or any other
Secured Party has at law or in equity against any Guarantor by virtue hereof,
upon the failure of the Borrower or any other Loan Party to pay any Obligation
when and as the same shall become due, whether at maturity, by acceleration,
after notice of prepayment or otherwise, each Guarantor hereby promises to and
will forthwith pay, or cause to be paid, to the Collateral Agent in cash the
amount of such unpaid Obligations to be applied by the Collateral Agent in the
manner required by Article V of the Collateral Agency and Intercreditor
Agreement. Upon payment by any Guarantor of any sums to the Collateral Agent,
all rights of such Guarantor against the Borrower arising as a result thereof by
way of right of subrogation, contribution, reimbursement, indemnity or otherwise
shall in all respects be subordinate and junior in right of payment to the prior
indefeasible payment in full in cash of all the Obligations as provided in the
Subordination Agreement.

   SECTION 8. Information. Each of the Guarantors assumes all responsibility for
being and keeping itself informed of the Borrower's financial condition and
assets, and of all other circumstances bearing upon the risk of nonpayment of
the Obligations and the nature, scope and extent of the risks that such
Guarantor assumes and incurs hereunder, and agrees that none of the Collateral
Agent or the other Secured Parties will have any duty to advise any of the
Guarantors of information known to it or any of them regarding such
circumstances or risks.

   SECTION 9. Representations and Warranties. Each of
<PAGE>

6

the Guarantors represents and warrants as to itself that all representations and
warranties relating to it contained in the Credit Agreement are true and
correct.

   SECTION 10. Termination. The Guarantees made hereunder (a) shall terminate
when all the Obligations have been indefeasibly paid in full and all Secured
Instrument Commitments shall have been terminated and (b) shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any
part thereof, of any Obligation is rescinded or must otherwise be restored by
any Secured Party or any Guarantor upon the bankruptcy or reorganization of the
Borrower, any Guarantor or otherwise.

   SECTION 11. Binding Effect; Several Agreement; Assignments. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the successors and assigns of such party; and all covenants,
promises and agreements by or on behalf of the Guarantors that are contained in
this Agreement shall bind and inure to the benefit of each party hereto and
their respective successors and assigns. This Agreement shall become effective
as to any Guarantor when a counterpart hereof executed on behalf of such
Guarantor shall have been delivered to the Collateral Agent, and a counterpart
hereof shall have been executed on behalf of the Collateral Agent, and
thereafter shall be binding upon such Guarantor and the Collateral Agent and
their respective successors and assigns, and shall inure to the benefit of such
Guarantor, the Collateral Agent and the other Secured Parties, and their
respective successors and assigns, except that no Guarantor shall have the right
to assign its rights or obligations hereunder or any interest herein (and any
such attempted assignment shall be void). Subject to Section 9.03 of the
Collateral Agency and Intercreditor Agreement, if all of the Equity Interests of
a Guarantor are sold, transferred or otherwise disposed of (other than to the
Parent or an Affiliate thereof including the Borrower or any Subsidiary Loan
Party) pursuant to a transaction that does not violate any Secured Instrument,
such Guarantor shall be released from its obligations under this Agreement
without further action. This Agreement shall be construed as a separate
agreement with respect to each Guarantor and may be amended, modified,
supplemented, waived or released with respect to any Guarantor without the
approval of any
<PAGE>

7

other Guarantor and without affecting the obligations of any other Guarantor
hereunder.

   SECTION 12. Waivers; Amendment. (a) No failure or delay of the Collateral
Agent in exercising any power or right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Collateral Agent hereunder and of
the Collateral Agent and the other Secured Parties under the other Support
Documents are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provision of this Agreement or
consent to any departure by any Guarantor therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) below, and then
such waiver or consent shall be effective only in the specific instance and for
the purpose for which given. No notice or demand on any Guarantor in any case
shall entitle such Guarantor to any other or further notice or demand in similar
or other circumstances.

   (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into between the
Guarantors with respect to which such waiver, amendment or modification relates
and the Collateral Agent, subject to any consents required in accordance with
Section 11.02 of the Collateral Agency and Intercreditor Agreement.

   SECTION 13. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

   SECTION 14. Notices. All communications and notices hereunder shall be in
writing and given as provided in Section 11.01 of the Collateral Agency and
Intercreditor Agreement. All communications and notices hereunder to each
Guarantor shall be given to it in care of the Borrower at the address set forth
in the Credit Agreement.
<PAGE>

8

   SECTION 15. Survival of Agreement; Severability. (a) All covenants,
agreements, representations and warranties made by the Guarantors herein and in
the certificates or other instruments prepared or delivered in connection with
or pursuant to this Agreement or any other Support Document shall be considered
to have been relied upon by the Collateral Agent and the other Secured Parties
and shall survive the extension of credit by any Secured Party pursuant to a
Secured Instrument regardless of any investigation made by any Secured Party or
on their behalf, and shall continue in full force and effect until this
Agreement shall terminate.

   (b) In the event any one or more of the provisions contained in this
Agreement or in any other Support Document should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein and therein shall not in any way be
affected or impaired thereby (it being understood that the invalidity of a
particular provision in a particular jurisdiction shall not in and of itself
affect the validity of such provision in any other jurisdiction). The parties
shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

   SECTION 16. Counterparts. This Agreement may be executed in counterparts,
each of which shall constitute an original, but all of which when taken together
shall constitute a single contract, and shall become effective as provided in
Section 11. Delivery of an executed signature page to this Agreement by
facsimile transmission shall be as effective as delivery of a manually executed
counterpart of this Agreement.

   SECTION 17. Rules of Interpretation. The rules of interpretation specified in
Section 1.02 of the Collateral Agency and Intercreditor Agreement shall be
applicable to this Agreement.

   SECTION 18. Jurisdiction; Consent to Service of Process. (a) Each Guarantor
hereby irrevocably and
<PAGE>

9

unconditionally submits, for itself and its property, to the nonexclusive
jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New
York, and any appellate court from any thereof, in any action or proceeding
arising out of or relating to this Agreement or any other Support Document, or
for recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State or,
to the extent permitted by law, in such Federal court. Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing in this Agreement or any other
Support Document shall affect any right that the Collateral Agent or any other
Secured Party may otherwise have to bring any action or proceeding relating to
this Agreement or any other Support Document against any Guarantor or its
properties in the courts of any jurisdiction.

   (b) Each Guarantor hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or any other Support Document in
any New York State or Federal court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

   (c) Each party to this Agreement irrevocably consents to service of process
in the manner provided for notices in Section 14. Nothing in this Agreement will
affect the right of any party to this Agreement to serve process in any other
manner permitted by law.

   SECTION 19. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE
<PAGE>

10

LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS
AGREEMENT OR THE OTHER SUPPORT DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND
THE OTHER SUPPORT DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL
WAIVERS AND CERTIFICATIONS IN THIS SECTION 19.

   SECTION 20. Additional Guarantors. Upon execution and delivery after the date
hereof by the Collateral Agent and a Subsidiary Loan Party of an instrument in
the form of Annex 1, such Subsidiary Loan Party shall become a Guarantor
hereunder with the same force and effect as if originally named as a Guarantor
herein. The execution and delivery of any instrument adding an additional
Guarantor as a party to this Agreement shall not require the consent of any
other Guarantor hereunder. The rights and obligations of each Guarantor
hereunder shall remain in full force and effect notwithstanding the addition of
any new Guarantor as a party to this Agreement. This Agreement may be waived,
amended or modified with respect to any one or more Guarantors and any one or
more Guarantors may be released from its obligations hereunder without the
consent or agreement of any other Guarantor.

   SECTION 21. Right of Setoff. While a Notice of Enforcement is in effect, each
Secured Party is hereby authorized at any time and from time to time, to the
fullest extent permitted by law, to set off and apply any and all deposits
(general or special, time or demand, provisional or final) at any time held and
other Indebtedness at any time owing by such Secured Party to or for the credit
or the account of any Guarantor against any or all the obligations of such
Guarantor now or hereafter existing under this Agreement and the other Support
Documents held by such Secured Party, irrespective of whether or not such
Secured Party shall have made any demand under this Agreement or any other
Support Document and although such obligations may be unmatured. After any
exercise of such right of setoff, the
<PAGE>

11

Secured Party shall give notice of such exercise to the Collateral Agent and the
Borrower; provided, however, that failure to give such notice shall not in any
way affect the rights of any Secured Party. The rights of each Secured Party
under this Section 21 are in addition to other rights and remedies (including
other rights of setoff) which such Secured Party may have.

   SECTION 22. Credit Agreement Covenants. Each Guarantor hereby covenants and
agrees to comply with all covenants contained in the Credit Agreement that are
applicable to such Guarantor.

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

                          CRICKET COMMUNICATIONS, INC.,

                          By
                            -------------------------------------
                            Name:
                            Title:

                          EACH SUBSIDIARY LISTED ON
                          SCHEDULE I HERETO,

                          By
                            -------------------------------------
                            Name:
                            Title:

                          EACH LICENSE SUBSIDIARY LISTED
                          ON SCHEDULE I HERETO,

                          By
                            -------------------------------------
                            Name:
<PAGE>

12

                            Title:

                          STATE STREET BANK AND TRUST
                          COMPANY, as Collateral Agent,

                          By
                            -------------------------------------
                            Name:
                            Title:
<PAGE>

13

                                                               Schedule I to the
                                                             Guarantee Agreement

      Guarantor                                Address
      ---------                                -------
<PAGE>

14

                                                                  Annex 1 to the
                                                             Guarantee Agreement

   SUPPLEMENT NO. [ ] dated as of , to the Guarantee Agreement dated as of
September 17, 1999, among CRICKET COMMUNICATIONS, INC., a Delaware corporation
("Holdings"), each of the subsidiaries of Cricket Wireless Communications, Inc.,
a Delaware corporation (the "Borrower") listed on Schedule I thereto (each such
subsidiary individually, a "Subsidiary" and, collectively, the "Subsidiaries"),
each of the subsidiaries of Leap Wireless International, Inc., a Delaware
corporation (the "Parent") listed on Schedule I thereto (each such subsidiary
individually, a "License Subsidiary" and, collectively, the "License
Subsidiaries"; and Holdings, each Subsidiary and License Subsidiary,
individually, a "Guarantor" and, collectively, the "Guarantors") and STATE
STREET BANK AND TRUST COMPANY, as collateral agent (in such capacity, the
"Collateral Agent") for the Secured Parties.

   A. Reference is made to (a) the Collateral Agency and Intercreditor Agreement
(as defined in the Guarantee Agreement) and (b) the Guarantee Agreement.

   B. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Guarantee Agreement.

   C. The Guarantors have entered into the Guarantee Agreement in order to
induce the Secured Parties to make loans under the Secured Instruments. Section
20 of the Guarantee Agreement provides that additional Subsidiary Loan Parties
may become Guarantors under the Guarantee Agreement by execution and delivery of
an instrument in the form of this Supplement. The undersigned Subsidiary Loan
Party (the "New Guarantor") is executing this Supplement to become a Guarantor
under the Guarantee Agreement in order to induce the Secured Parties to make
additional loans and as consideration for loans previously made under the
Secured Instruments.

   Accordingly, the Collateral Agent and the New Guarantor agree as follows:

   SECTION 1. In accordance with Section 20 of the Guarantee Agreement, the New
Guarantor by its signature below becomes a Guarantor under the Guarantee
Agreement with the same force and effect as if originally named therein as a
Guarantor and the New Guarantor hereby (a) agrees to all the terms and
provisions of the Guarantee Agreement applicable to it as a Guarantor thereunder
and (b) represents and warrants that the representations and warranties made by
it as a Guarantor thereunder are true and correct on and as of the date hereof
except for representations and warranties which by their terms refer to a
specific date. Each reference to a "Guarantor" in the Guarantee Agreement shall
be deemed to include the New Guarantor. The Guarantee Agreement is hereby
incorporated herein by reference.
<PAGE>

15

   SECTION 2. The New Guarantor represents and warrants to the Collateral Agent
and the other Secured Parties that this Supplement has been duly authorized,
executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, subject to
applicable bankruptcy, insolvency, moratorium or other laws affecting creditors'
rights generally and subject to general principles of equity regardless of
whether considered in a proceeding in equity or at law.

   SECTION 3. This Supplement may be executed in counterparts, each of which
shall constitute an original, but all of which when taken together shall
constitute a single contract. This Supplement shall become effective when the
Collateral Agent shall have received counterparts of this Supplement that, when
taken together, bear the signatures of the New Guarantor and the Collateral
Agent. Delivery of an executed signature page to this Supplement by facsimile
transmission shall be as effective as delivery of a manually executed
counterpart of this Supplement.

   SECTION 4. Except as expressly supplemented hereby, the Guarantee Agreement
shall remain in full force and effect.

   SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

   SECTION 6. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein and in the Guarantee Agreement shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular
provision hereof in a particular jurisdiction shall not in and of itself affect
the validity of such provision in any other jurisdiction). The parties hereto
shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

   SECTION 7. All communications and notices hereunder shall be in writing and
given as provided in Section 14 of the Guarantee Agreement. All communications
and notices hereunder to the New Guarantor shall be given to it at the address
set forth under its signature below, with a copy to the Borrower.

   SECTION 8. The New Guarantor agrees to reimburse the Collateral Agent for its
reasonable out-of-pocket expenses in connection with this Supplement, including
the reasonable fees, disbursements and other charges of counsel for the
<PAGE>

16

Collateral Agent.

   IN WITNESS WHEREOF, the New Guarantor and the Collateral Agent have duly
executed this Supplement to the Guarantee Agreement as of the day and year first
above written.

                              [NAME OF NEW GUARANTOR],

                              By
                                --------------------------------------
                                Name:
                                Title:
                                Address:

                              STATE STREET BANK AND TRUST
                              COMPANY, as Collateral Agent,

                              By
                                --------------------------------------
                                Name:
                                Title:
<PAGE>

1

                                                                       EXHIBIT D

          INDEMNITY, SUBROGATION and CONTRIBUTION AGREEMENT dated
       as of September 17, 1999, among CRICKET WIRELESS COMMUNICATIONS,
       INC., a Delaware corporation (the "Borrower"), each subsidiary
       of the Borrower listed on Schedule I hereto (each a
       "Subsidiary", and, collectively, the "Subsidiaries") each
       subsidiary of Leap Wireless International, Inc., a Delaware
       corporation (the "Parent") listed on Schedule I hereto (each a
       "License Subsidiary", and, collectively, the "License
       Subsidiaries"; each such Subsidiary and each such License
       Subsidiary individually, a "Guarantor" and, collectively, the
       "Guarantors") and STATE STREET BANK AND TRUST COMPANY, as
       collateral agent (in such capacity, the "Collateral Agent") for
       the Secured Parties.

   Reference is made to (a) the Collateral Agency and Intercreditor Agreement
dated as of September 17, 1999 (as amended, supplemented or otherwise modified
from time to time, the "Collateral Agency and Intercreditor Agreement") among
the Borrower, the Representatives and Unrepresented Holders referred to therein
and the Collateral Agent and (b) the Guarantee Agreement and the other Support
Documents. Capitalized terms used herein and not defined herein shall have the
meanings assigned to such terms in the Collateral Agency and Intercreditor
Agreement. Each Guarantor acknowledges receipt of a true and correct copy of the
Collateral Agency and Intercreditor Agreement and agrees to the terms thereof.

   The Lenders have agreed to make Loans to the Borrower pursuant to, and upon
the terms and subject to the conditions specified in, the Credit Agreement. The
Guarantors have guaranteed such Loans and the other Obligations pursuant to the
Guarantee Agreement; certain Guarantors have granted Liens on and security
interests in certain of their assets to secure the Obligations pursuant to the
Security Documents. The obligations of the Lenders to make Loans are conditioned
on, among other things, the execution and delivery by the Borrower, the
Guarantors and the Collateral Agent of an agreement in the form hereof.
<PAGE>

2

The Borrower may from time to time incur Permitted Additional Obligations that
are required to be guaranteed pursuant to the Guarantee Agreement and secured
under the Security Documents.

   Accordingly, the Borrower, each Guarantor and the Collateral Agent agree as
follows:

   SECTION 1. Indemnity and Subrogation. In addition to all such rights of
indemnity and subrogation as the Guarantors may have under applicable law (but
subject to Section 3), the Borrower agrees that (a) in the event a payment shall
be made by any Guarantor under the Guarantee Agreement, the Borrower shall
indemnify such Guarantor for the full amount of such payment and such Guarantor
shall be subrogated to the rights of the Person to whom such payment shall have
been made to the extent of such payment and (b) in the event any assets of any
Guarantor shall be sold pursuant to any Security Document to satisfy a claim of
any Secured Party, the Borrower shall indemnify such Guarantor in an amount
equal to the greater of the book value or the fair market value of the assets so
sold.

   SECTION 2. Contribution and Subrogation. Each Guarantor (a "Contributing
Guarantor") agrees (subject to Section 3) that, in the event a payment shall be
made by any other Guarantor under the Guarantee Agreement or assets of any other
Guarantor shall be sold pursuant to any Security Document to satisfy a claim of
any Secured Party and such other Guarantor (the "Claiming Guarantor") shall not
have been fully indemnified by the Borrower as provided in Section 1, the
Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal
to the amount of such payment or the greater of the book value or the fair
market value of such assets, as the case may be, in each case multiplied by a
fraction of which the numerator shall be the net worth of the Contributing
Guarantor on the date hereof and the denominator shall be the aggregate net
worth of all the Guarantors on the date hereof (or, in the case of any Guarantor
becoming a party hereto pursuant to Section 12, the date of the Supplement
hereto executed and delivered by such Guarantor). Any Contributing Guarantor
making any payment to a Claiming Guarantor pursuant to this Section 2 shall be
subrogated to the rights of such Claiming Guarantor under Section 1 to the
extent of such payment.
<PAGE>

3

   SECTION 3. Subordination. Notwithstanding any provision of this Agreement to
the contrary, all rights of the Guarantors under Sections 1 and 2 and all other
rights of indemnity, contribution or subrogation under applicable law or
otherwise shall be fully subordinated to the indefeasible payment in full in
cash of all Obligations which are then due and payable whether at maturity, by
acceleration or otherwise. No failure on the part of the Borrower or any
Guarantor to make the payments required by Sections 1 and 2 (or any other
payments required under applicable law or otherwise) shall in any respect limit
the obligations and liabilities of any Guarantor with respect to its obligations
hereunder, and each Guarantor shall remain liable for the full amount of the
obligations of such Guarantor hereunder.

   SECTION 4. Termination. This Agreement shall survive and be in full force and
effect so long as any Obligation is outstanding and has not been indefeasibly
paid in full in cash, and so long as any of the Secured Instrument Commitments
have not been terminated, and shall continue to be effective or be reinstated,
as the case may be, if at any time payment, or any part thereof, of any
Obligation is rescinded or must otherwise be restored by any Secured Party or
any Guarantor upon the bankruptcy or reorganization of the Borrower, any
Guarantor or otherwise.

   SECTION 5. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

   SECTION 6. No Waiver; Amendment. (a) No failure on the part of the Collateral
Agent or any Guarantor to exercise, and no delay in exercising, any right, power
or remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right, power or remedy by the Collateral Agent or
any Guarantor preclude any other or further exercise thereof or the exercise of
any other right, power or remedy. All remedies hereunder are cumulative and are
not exclusive of any other remedies provided by law. None of the Collateral
Agent and the Guarantors shall be deemed to have waived any rights hereunder
unless such waiver shall be in writing and signed by such parties.
<PAGE>

4

   (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into between the
Borrower, the Guarantor or Guarantors with respect to which such waiver,
amendment or modification is to apply and the Collateral Agent, subject to any
consents required in accordance with Section 11.02 of the Collateral Agency and
Intercreditor Agreement.

   SECTION 7. Notices. All communications and notices hereunder shall be in
writing and given as provided in the Guarantee Agreement and addressed as
specified therein.

   SECTION 8. Binding Agreement; Assignments. Whenever in this Agreement any of
the parties hereto is referred to, such reference shall be deemed to include the
successors and assigns of such party; and all covenants, promises and agreements
by or on behalf of the parties that are contained in this Agreement shall bind
and inure to the benefit of their respective successors and assigns. Neither the
Borrower nor any Guarantor may assign or transfer any of its rights or
obligations hereunder (and any such attempted assignment or transfer shall be
void), except as expressly contemplated by this Agreement or the other Support
Documents. Notwithstanding the foregoing, at the time any Guarantor is released
from its obligations under the Guarantee Agreement and any Security Documents to
which it is a party in accordance with the Support Documents and the Secured
Instruments, such Guarantor will cease to have any rights or obligations under
this Agreement.

   SECTION 9. Survival of Agreement; Severability. (a) All covenants and
agreements made by the Borrower and each Guarantor herein and in the
certificates or other instruments prepared or delivered in connection with this
Agreement or the other Support Documents shall be considered to have been relied
upon by the Collateral Agent, the other Secured Parties and each Guarantor and
shall survive the extension of credit by any Secured Party pursuant to the
Secured Instruments and shall continue in full force and effect until this
agreement shall terminate.

   (b) In case any one or more of the provisions contained in this Agreement
should be held invalid, illegal
<PAGE>

5

or unenforceable in any respect, no party hereto shall be required to comply
with such provision for so long as such provision is held to be invalid, illegal
or unenforceable, but the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired
thereby. The parties shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

   SECTION 10. Counterparts. This Agreement may be executed in counterparts (and
by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a
single contract. This Agreement shall be effective with respect to any Guarantor
when a counterpart bearing the signature of such Guarantor shall have been
delivered to the Collateral Agent. Delivery of an executed signature page to
this Agreement by facsimile transmission shall be as effective as delivery of a
manually signed counterpart of this Agreement.

   SECTION 11. Rules of Interpretation. The rules of interpretation specified in
Section 1.02 of the Collateral Agency and Intercreditor Agreement shall be
applicable to this Agreement.

   SECTION 12. Additional Guarantors. Upon execution and delivery, after the
date hereof, by the Collateral Agent and a Subsidiary Loan Party of an
instrument in the form of Annex 1 hereto, such Subsidiary Loan Party shall
become a Guarantor hereunder with the same force and effect as if originally
named as a Guarantor hereunder. The execution and delivery of any instrument
adding an additional Guarantor as a party to this Agreement shall not require
the consent of any Guarantor hereunder. The rights and obligations of each
Guarantor hereunder shall remain in full force and effect notwithstanding the
addition of any new Guarantor as a party to this Agreement. This Agreement may
be waived, amended or modified with respect to any one or more Guarantors and
any one or more Guarantors may be released from its obligations hereunder
without the consent or agreement of any other Guarantor.
<PAGE>

6

   IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized officers as of the date first appearing above.

                                   CRICKET WIRELESS
                                   COMMUNICATIONS, INC.,
                                   By
                                     --------------------------------------
                                     Name:
                                     Title:

                                   EACH SUBSIDIARY LISTED ON
                                   SCHEDULE I,

                                   By
                                     --------------------------------------
                                     Name:
                                     Title:

                                   EACH LICENSE SUBSIDIARY LISTED
                                   ON SCHEDULE I,

                                   By
                                     --------------------------------------
                                     Name:
                                     Title:

                                   STATE STREET BANK AND TRUST
                                   COMPANY, as Collateral Agent,

                                   By
                                     --------------------------------------
                                     Name:
                                     Title:
<PAGE>

7

                                                               Schedule I to the
                                                      Indemnity, Subrogation and
                                                          Contribution Agreement

                                  GUARANTORS

                Guarantor                                Address
                ---------                                -------
<PAGE>

8

                                                                  Annex 1 to the
                                                      Indemnity, Subrogation and
                                                          Contribution Agreement

          SUPPLEMENT NO. [ ] dated as of [ ], to the Indemnity,
       Subrogation and Contribution Agreement dated as of September 17,
       1999 (as the same may be amended, supplemented or otherwise
       modified from time to time, the "Indemnity, Subrogation and
       Contribution Agreement"), among CRICKET WIRELESS COMMUNICATIONS,
       INC., a Delaware corporation (the "Borrower"),each subsidiary of
       the Borrower listed on Schedule I thereto (each a "Subsidiary",
       and, collectively, the "Subsidiaries") each subsidiary of Leap
       Wireless International, Inc., a Delaware corporation (the
       "Parent") listed on Schedule I thereto (each a "License
       Subsidiary", and, collectively, the "License Subsidiaries"; each
       such Subsidiary and each such License Subsidiary individually, a
       "Guarantor" and, collectively, the "Guarantors") and STATE
       STREET BANK AND TRUST COMPANY, as collateral agent (in such
       capacity, the "Collateral Agent") for the Secured Parties.

   A. Reference is made to (a) the Collateral Agency and Intercreditor Agreement
(as defined in the Indemnity, Subrogation and Contribution Agreement) and (b)
the Indemnity, Subrogation and Contribution Agreement.

   B. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Indemnity, Subrogation and
Contribution Agreement.

   C. The Borrower and the Guarantors have entered into the Indemnity,
Subrogation and Contribution Agreement in order to induce the Secured Parties to
make loans under the applicable Secured Instruments. Section 12 of the
Indemnity, Subrogation and Contribution Agreement provides that additional
Subsidiary Loan Parties may become Guarantors under the Indemnity, Subrogation
and Contribution
<PAGE>

9

Agreement by execution and delivery of an instrument in the form of this
Supplement. The undersigned Subsidiary Loan Party of the Borrower (the "New
Guarantor") is executing this Supplement in accordance with the requirements of
the Credit Agreement to become a Guarantor under the Indemnity, Subrogation and
Contribution Agreement in order to induce the Secured Parties to make additional
loans under the applicable Secured Instruments and as consideration for Loans
previously made under the Secured Instruments.

   Accordingly, the Collateral Agent and the New Guarantor agree as follows:

   SECTION 1. In accordance with Section 12 of the Indemnity, Subrogation and
Contribution Agreement, the New Guarantor by its signature below becomes a
Guarantor under the Indemnity, Subrogation and Contribution Agreement with the
same force and effect as if originally named therein as a Guarantor and the New
Guarantor hereby agrees to all the terms and provisions of the Indemnity,
Subrogation and Contribution Agreement applicable to it as a Guarantor
thereunder. Each reference to a "Guarantor" in the Indemnity, Subrogation and
Contribution Agreement shall be deemed to include the New Guarantor. The
Indemnity, Subrogation and Contribution Agreement is hereby incorporated herein
by reference.

   SECTION 2. The New Guarantor represents and warrants to the Collateral Agent
and the other Secured Parties that this Supplement has been duly authorized,
executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms.

   SECTION 3. This Supplement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract. This Supplement shall become effective when the Collateral Agent shall
have received counterparts of this Supplement that, when taken together, bear
the signatures of the New Guarantor and the Collateral Agent. Delivery of an
executed signature page to this Supplement by facsimile transmission shall be as
effective as delivery of a manually signed counterpart of this Supplement.
<PAGE>

10

   SECTION 4. Except as expressly supplemented hereby, the Indemnity,
Subrogation and Contribution Agreement shall remain in full force and effect.

   SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

   SECTION 6. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect,
neither party hereto shall be required to comply with such provision for so long
as such provision is held to be invalid, illegal or unenforceable, but the
validity, legality and enforceability of the remaining provisions contained
herein and in the Indemnity, Subrogation and Contribution Agreement shall not in
any way be affected or impaired. The parties hereto shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the invalid, illegal or unenforceable provisions.

   SECTION 7. All communications and notices hereunder shall be in writing and
given as provided in Section 7 of the Indemnity, Subrogation and Contribution
Agreement. All communications and notices hereunder to the New Guarantor shall
be given to it at the address set forth under its signature.

   SECTION 8. The New Guarantor agrees to reimburse the Collateral Agent for its
reasonable out-of-pocket expenses in connection with this Supplement, including
the reasonable fees, other charges and disbursements of counsel for the
Collateral Agent.
<PAGE>

11

   IN WITNESS WHEREOF, the New Guarantor and the Collateral Agent have duly
executed this Supplement to the Indemnity, Subrogation and Contribution
Agreement as of the day and year first above written.

                                   [NAME OF NEW GUARANTOR],
                                    By
                                      --------------------------------------
                                    Name:
                                    Title:

                                    STATE STREET BANK AND TRUST
                                    COMPANY, as Collateral Agent,
                                    By
                                      --------------------------------------
                                    Name:
                                    Title:

<PAGE>

12

                                                Schedule I to Supplement No. [ ]
                                               to the Indemnity, Subrogation and
                                                          Contribution Agreement

                                  GUARANTORS

                  Name                                   Address
                  ----                                   -------
<PAGE>

 1

                                                                       EXHIBIT E

          PARENT AGREEMENT dated as of September 17, 1999, among
       LEAP WIRELESS INTERNATIONAL, INC., a Delaware corporation (the
       "Parent") and LUCENT TECHNOLOGIES INC., as administrative agent
       (in such capacity, the "Administrative Agent") for the Lenders
       (as defined in the Credit Agreement referred to below).

   Reference is made to the Credit Agreement dated as of September 17, 1999 (as
amended, supplemented or otherwise modified from time to time, the "Credit
Agreement"), among Cricket Wireless Communications, Inc. (the "Borrower"),
Cricket Communications, Inc., the lenders from time to time party thereto (the
"Lenders") and the Administrative Agent. Capitalized terms used herein and not
defined herein shall have meanings assigned to such terms in the Credit
Agreement.

   The Lenders have agreed to make Loans to the Borrower pursuant to, and upon
the terms and subject to the conditions specified in, the Credit Agreement. The
Borrower is a subsidiary of the Parent. The obligations of the Lenders to make
Loans are conditioned upon, among other things, the execution and delivery by
the Parent of an agreement in the form hereof to set forth certain covenants,
agreements and obligations of the Parent.

   Accordingly, the Parent and the Administrative Agent, on behalf of itself and
each Lender (and each of their respective successors or assigns), hereby agree
as follows:

   SECTION 1. Guarantee. The Parent unconditionally guarantees, as a primary
obligor and not merely as a surety, the due and punctual payment of the ChaseTel
Loans and any accrued interest thereon (the "ChaseTel Obligations"), when and as
due, whether at maturity, by acceleration, upon one or more dates set for
prepayment or otherwise. The Parent further agrees that the ChaseTel Obligations
may be extended or renewed, in whole or in part, without notice to or further
assent from it, and that it will remain bound upon its guarantee notwithstanding
any extension or renewal of any ChaseTel Obligation.

   SECTION 2. Obligations Not Waived. To the fullest extent permitted by
applicable law, the Parent waives presentment to, demand of payment from and
protest to the Borrower of any of the ChaseTel Obligations, and also waives
notice of acceptance of its guarantee and notice of protest for nonpayment.
<PAGE>

2

   SECTION 3. No Discharge or Diminishment of Guarantee. The obligations of the
Parent hereunder shall not be subject to any reduction, limitation, impairment
or termination for any reason (other than the indefeasible payment in full in
cash of all the ChaseTel Obligations), including any claim of waiver, release,
surrender, alteration or compromise of any of the ChaseTel Obligations, and
shall not be subject to any defense or setoff, counterclaim, recoupment or
termination whatsoever by reason of the invalidity, illegality or
unenforceability of the ChaseTel Obligations or otherwise.

   SECTION 4. Defenses of Borrower Waived. To the fullest extent permitted by
applicable law, the Parent waives any defense based on or arising out of any
defense of the Borrower or the unenforceability of the ChaseTel Obligations or
any part thereof from any cause, or the cessation from any cause of the
liability of the Borrower, other than the final and indefeasible payment in full
in cash of all the ChaseTel Obligations.

   SECTION 5. Agreement to Pay; Subordination. In furtherance of the foregoing
and not in limitation of any other right that the Administrative Agent or any
other Lender has at law or in equity against the Parent by virtue hereof, upon
the failure of the Borrower or any other Loan Party to pay any ChaseTel
Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, the Parent hereby
promises to and will forthwith pay, or cause to be paid, to the Administrative
Agent in cash the amount of such unpaid ChaseTel Obligations to be applied by
the Administrative Agent as provided in the Credit Agreement. Upon payment by
the Parent of any sums to the Administrative Agent, all rights of the Parent
against the Borrower arising as a result thereof by way of right of subrogation,
contribution, reimbursement, indemnity or otherwise shall in all respects be
subordinate and junior in right of payment to the prior indefeasible payment in
full in cash of all the Obligations as provided in the Subordination Agreement.

   SECTION 6. Termination. The guarantee made hereunder (a) shall terminate when
all the ChaseTel Obligations have been indefeasibly paid in full and (b) shall
continue to be effective or be reinstated, as the case may be, if at any
<PAGE>

3

time payment, or any part thereof, of any ChaseTel Obligation is rescinded or
must otherwise be restored by any Lender or the Parent upon the bankruptcy or
reorganization of the Borrower, the Parent or otherwise. Notwithstanding the
foregoing, the guarantee made hereunder shall terminate upon the consummation of
the ChaseTel Acquisition in accordance with the terms of the Credit Agreement.

   SECTION 7. Purchase Agreement. (a) If the ChaseTel Acquisition has not been
consummated in accordance with the terms of the Credit Agreement prior to the
date that is one year after the Effective Date, then on the date that is one
year after the Effective Date, the Parent shall pay to the Administrative Agent
in cash the aggregate principal amount of all ChaseTel Loans together with
accrued interest thereon, without utilizing any funds of the Borrower or any
Subsidiary Loan Party, which funds shall be applied to prepay such Loans and
accrued interest.

   (b) Upon payment by the Parent of any sums to the Administrative Agent
pursuant to this Section 7, all rights of the Parent against the Borrower
arising as a result thereof by way of right of subrogation, contribution,
reimbursement, indemnity or otherwise shall constitute Primary Subordinated
Obligations and shall in all respects be subordinate and junior in right of
payment to the prior indefeasible payment in full in cash of all the Obligations
as provided in the Subordination Agreement.

   SECTION 8. Covenants. Until the Commitments have expired or terminated and
the principal of and interest on each Loan and all fees payable under the Credit
Agreement shall have been paid in full, the Parent hereby covenants and agrees
with the Administrative Agent that:

       (a) The Parent will not, nor will it permit any of its direct or
   indirect subsidiaries (other than the Borrower and the Subsidiary Loan
   Parties) to, engage to any material extent in the wireless
   telecommunications and data networking business or any business that
   competes with the business conducted by the Borrower and the Subsidiary
   Loan Parties, in each case, in the United States.

       (b) The Parent and its subsidiaries (other than
<PAGE>

4

   the Borrower and the Subsidiary Loan Parties) will cause all assets
   owned by the Parent and its subsidiaries that are used predominantly in
   the business of the Borrower and the Subsidiary Loan Parties to be owned
   by the Borrower and the Subsidiary Loan Parties.

   SECTION 9. ChaseTel Covenants. Unless and until the ChaseTel Acquisition has
been consummated in accordance with the terms of the Credit Agreement, at any
time any ChaseTel Obligations remain outstanding, the Parent covenants and
agrees with the Administrative Agent that:

   (a) The Parent will not enter into any amendment or modification of or accept
any waiver of Section 5.3 of the Credit Agreement dated as of September 23, 1998
among the Parent, as borrower, QUALCOMM Incorporated, the other lenders named
therein and ABN AMRO Bank N.V., as administrative agent (the "QUALCOMM Credit
Agreement");

   (b) The Parent shall comply with the covenants set forth in Section 5 of the
QUALCOMM Credit Agreement, as in effect from time to time;

   (c) Upon the payment of all amounts outstanding under the QUALCOMM Credit
Agreement and the termination of all commitments to lend under the QUALCOMM
Credit Agreement, the Parent shall comply with the covenants set forth in
Section 5 of the QUALCOMM Credit Agreement as in effect as of the Effective
Date, without giving effect to any subsequent amendment or waiver thereto; and

   (d) The Parent will not (i) consolidate or merge with or into any other
Person or (ii) sell, lease or otherwise transfer, directly or indirectly, all or
substantially all of its assets to any other Person unless, in either case, such
Person assumes, in writing, the obligations of the Parent under this Agreement.

   SECTION 10. Waivers; Amendment. (a) No failure or delay of the Administrative
Agent in exercising any power or right hereunder shall operate as a waiver
thereof, nor shall
<PAGE>

5

any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights
and remedies of the Administrative Agent hereunder and of the other Secured
Parties under the other Loan Documents are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any
provisions of this Agreement or consent to any departure by the Parent therefrom
shall in any event be effective unless the same shall be permitted by paragraph
(b) below, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. No notice or demand on
the Parent in any case shall entitle the Parent to any other or further notice
or demand in similar or other circumstances.

   (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into between the
Administrative Agent and the Parent, subject to any consent required in
accordance with Section 9.02 of the Credit Agreement.

   SECTION 11. Notices. All communications and notices hereunder shall be in
writing and given as provided in Section 9.01 of the Credit Agreement; provided
that any communication or notice hereunder to the Parent shall be given to it at
[_________], attention of [_________] (Telecopy No. [_________]).

   SECTION 12. Further Assurances. The Parent agrees to do such further acts and
things, and to execute and deliver such additional conveyances, assignments,
agreements and instruments, as the Administrative Agent may at any time
reasonably request in connection with the administration and enforcement of this
Agreement or in order better to assure and confirm unto the Administrative Agent
its rights and remedies hereunder.

   SECTION 13. Binding Effect; Several Agreement; Assignments. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the successors and assigns of such party; and all covenants,
promises and agreements by or on behalf of the Parent that are contained in this
Agreement shall bind and
<PAGE>

6

inure to the benefit of its successors and assigns. This Agreement shall become
effective as to the Parent when a counterpart hereof executed on behalf of the
Parent shall have been delivered to the Administrative Agent and a counterpart
hereof shall have been executed on behalf of the Administrative Agent, and
thereafter shall be binding upon the Parent and the Administrative Agent and
their respective successors and assigns, and shall inure to the benefit of the
Parent, the Administrative Agent and the other Secured Parties, and their
respective successors and assigns.

   SECTION 14. Survival of Agreement; Severability. (a) All covenants,
agreements, representations and warranties made by the Parent herein and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the Administrative Agent and the other Secured Parties
and shall survive the making by the Lenders of the Loans, regardless of any
investigation made by the Secured Parties or on their behalf, and shall continue
in full force and effect as long as the principal of or any accrued interest on
any Loan or any other fee or amount payable under this Agreement or any other
Loan Document is outstanding and unpaid.

   (b) In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby (it being understood
that the invalidity of a particular provision in a particular jurisdiction shall
not in and of itself affect the validity of such provision in any other
jurisdiction). The parties shall endeavor in good-faith negotiations to replace
the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid,
illegal or unenforceable provisions.

   SECTION 15. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.
<PAGE>

7

   SECTION 16. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute a single contract, and shall become effective
as provided in Section 13. Delivery of an executed counterpart of a signature
page to this Agreement by facsimile transmission shall be as effective as
delivery of a manually executed counterpart of this Agreement.

   SECTION 17. Rules of Interpretation. The rules of interpretation specified in
Section 1.03 of the Credit Agreement shall be applicable to this Agreement.
Section headings used herein are for convenience of reference only, are not part
of this Agreement and are not to affect the construction of, or to be taken into
consideration in interpreting this Agreement.

   SECTION 18. Jurisdiction; Consent to Service of Process. (a) The Parent
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the
Southern District of New York, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to any Loan Document, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State or,
to the extent permitted by law, in such Federal court. Each of the parties
hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing in this Agreement or any other Loan
Document shall affect any right that the Administrative Agent or any other
Secured Party may otherwise have to bring any action or proceeding relating to
this Agreement or any other Loan Document against the Parent or its properties
in the courts of any jurisdiction.

   (b) The Parent hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection that it may now or
hereafter have to
<PAGE>

8

the laying of venue of any suit, action or proceeding arising out of or relating
to this Agreement or the other Loan Documents in any New York State or Federal
court. Each of the parties hereto hereby irrevocably waives, to the fullest
extent permitted by law, the defense of an inconvenient forum to the maintenance
of such action or proceeding in any such court.

   (c) Each party to this Agreement irrevocably consents to service of process
in the manner provided for notices in Section 11. Nothing in this Agreement will
affect the right of any party to this Agreement to serve process in any other
manner permitted by law.

   SECTION 19. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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

                 LEAP WIRELESS INTERNATIONAL,
                 INC.,

                 By
                   --------------------------------------
                   Name:
                   Title:

                 LUCENT TECHNOLOGIES INC., as
<PAGE>

9

                 Administrative Agent
                 By
                   --------------------------------------
                   Name:
                   Title:
<PAGE>

1

                                                                       EXHIBIT F

   PARENT PLEDGE AGREEMENT dated as of September 17, 1999, among LEAP WIRELESS
INTERNATIONAL, INC., a Delaware corporation (the "Parent") and STATE STREET BANK
AND TRUST COMPANY, as collateral agent (in such capacity, the "Collateral
Agent") for the Secured Parties.

   Reference is made to the Collateral Agency and Intercreditor Agreement dated
as of September 17, 1999 (as amended, supplemented or otherwise modified from
time to time, the "Collateral Agency and Intercreditor Agreement") among Cricket
Wireless Communications, Inc., a Delaware corporation (the "Borrower"), the
Representatives and Unrepresented Holders referred to therein and the Collateral
Agent. Capitalized terms used herein and not defined herein shall have the
meanings assigned to such terms in the Collateral Agency and Intercreditor
Agreement. The Parent acknowledges receipt of a true and correct copy of the
Collateral Agency and Intercreditor Agreement and agrees to the terms thereof.

   The Lenders have agreed to make Loans to the Borrower pursuant to, and upon
the terms and subject to the conditions specified in, the Credit Agreement. The
Borrower is a subsidiary of the Parent. The obligations of the Lenders to make
Loans are conditioned upon, among other things, the execution and delivery by
the Parent of a Pledge Agreement in the form hereof. The Borrower may from time
to time incur Permitted Additional Obligations that are required to be secured
pursuant to the terms hereof.

   Accordingly, the Parent and the Collateral Agent, on behalf of itself and
each Secured Party (and each of their respective successors or assigns), hereby
agree as follows:

   SECTION 1. Pledge. As security for the payment and performance, as the case
may be, in full of the Obligations, the Parent hereby transfers, grants,
bargains, sells, conveys, hypothecates, pledges, sets over and delivers unto the
Collateral Agent, its successors and assigns, and hereby grants to the
Collateral Agent, its successors and assigns, for the ratable benefit of the
Secured Parties, a security interest in all of the Parent's right, title and
interest in, to and under (a), the shares of capital stock, membership interests
or other, equity interests of the Borrower or any Subsidiary Loan Party owned by
it and listed on Schedule I hereto and any shares of the Borrower or any
Subsidiary Loan Party obtained in the future by the Parent and the certificates
representing all such shares,
<PAGE>

2

membership interests or other equity interests (collectively, the "Pledged
Stock"); provided that the pledged interests shall not include to the extent
that applicable law requires that the Borrower or any Subsidiary Loan Party
issue directors' qualifying shares, such qualifying shares; (b)(i) all debt
securities issued by the Borrower or any Subsidiary Loan Party owned by it, all
of which are listed on Schedule I hereto, (ii) any debt securities in the future
issued to the Parent by the Borrower or any Subsidiary Loan Party and (iii) the
promissory notes and any other instruments evidencing such debt securities (the
"Pledged Debt Securities"); (c) all other property that may be delivered to and
held by the Collateral Agent pursuant to the terms hereof; (d) subject to
Section 5, all payments of principal or interest, dividends, cash, instruments
and other property from time to time received, receivable or otherwise
distributed, in respect of, in exchange for or upon the conversion of the
securities referred to in clauses (a) and (b) above; (e) subject to Section 5,
all rights and privileges of the Parent with respect to the securities and other
property referred to in clauses (a), (b), (c) and (d) above; and (f) all
proceeds of any of the foregoing (the items referred to in clauses (a) through
(f) above being collectively referred to as the "Collateral"). Upon delivery to
the Collateral Agent, (a) any stock certificates, notes or other securities now
or hereafter included in the Collateral (the "Pledged Securities") shall be
accompanied by stock powers duly executed in blank or other instruments of
transfer satisfactory to the Collateral Agent and by such other instruments and
documents as the Collateral Agent may reasonably request in order to give effect
to the pledge granted hereby and (b) all other property comprising part of the
Collateral shall be accompanied by proper instruments of assignment duly
executed by the Parent and such other instruments or documents as the Collateral
Agent may reasonably request in order to give effect to the pledge granted
hereby. Each delivery of Pledged Securities shall be accompanied by a schedule
describing the securities theretofore and then being pledged hereunder, which
schedule shall be attached hereto as Schedule I and made a part hereof. Each
schedule so delivered shall supersede any prior schedules so delivered.

   TO HAVE AND TO HOLD the Collateral, together with all right, title, interest,
powers, privileges and preferences pertaining or incidental thereto, unto the
Collateral Agent,
<PAGE>

3

its successors and assigns, for the ratable benefit of the Secured Parties,
forever; subject, however, to the terms, covenants and conditions hereinafter
set forth.

   SECTION 2. Delivery of the Collateral. (a) The Parent agrees promptly to
deliver or cause to be delivered to the Collateral Agent any and all Pledged
Securities and any and all certificates or other instruments or documents
representing the Collateral.

   (b) The Parent will cause any Indebtedness for borrowed money owed to the
Parent by the Borrower or any Subsidiary Loan Party to be evidenced by a duly
executed promissory note, bond, debenture or similar instrument that is pledged
and delivered to the Collateral Agent pursuant to the terms thereof.

   SECTION 3. Representations, Warranties and Covenants. The Parent hereby
represents, warrants and covenants, as to itself and the Collateral pledged by
it hereunder, to and with the Collateral Agent that as of the Effective Date:

   (a) the Pledged Stock represents that percentage as set forth on Schedule I
of the issued and outstanding shares of each class of the capital stock of the
issuer with respect thereto;

   (b) except for the security interest granted hereunder, the Parent (i) is and
will at all times continue to be the direct owner, beneficially and of record,
of the Pledged Securities indicated on Schedule I, (ii) holds the same free and
clear of all Liens, (iii) will make no assignment, pledge, hypothecation or
transfer of, or create or permit to exist any security interest in or other Lien
on, the Collateral, other than pursuant hereto, and (iv) subject to Section 5,
will cause any and all Collateral, whether for value paid by the Parent or
otherwise, to be forthwith deposited with the Collateral Agent and pledged or
assigned hereunder;

   (c) the Parent (i) has the power and authority to pledge the Collateral in
the manner hereby done or contemplated and (ii) will defend its title or
interest thereto or therein against any and all Liens (other than the Lien
created by this Agreement), however arising, of all Persons whomsoever;
<PAGE>

4

   (d) except for such consents and approvals as have been obtained and are in
full force and effect, no consent of any other Person (including stockholders or
creditors of the Parent) and no consent or approval of any Governmental
Authority or any securities exchange was or is necessary to the validity of the
pledge effected hereby;

   (e) by virtue of the execution and delivery by the Parent of this Agreement,
when the Pledged Securities, certificates or other documents representing or
evidencing the Collateral are delivered to, and continue to be in the possession
of, the Collateral Agent in accordance with this Agreement, the Collateral Agent
will have a valid and perfected first lien upon and security interest in such
Pledged Securities as security for the payment and performance of the
Obligations;

   (f) the pledge effected hereby is effective to vest in the Collateral Agent,
on behalf of the Secured Parties, the rights of the Collateral Agent in the
Collateral as set forth herein;

   (g) all of the Pledged Stock has been duly authorized and validly issued and
is fully paid and nonassessable;

   (h) all information set forth herein relating to the Pledged Stock is
accurate and complete in all material respects as of the date hereof; and

   (i) the pledge of the Pledged Stock pursuant to this Agreement does not
violate Regulation U or X of the Federal Reserve Board or any successor thereto
as of the date hereof.

   SECTION 4. Registration in Nominee Name; Denominations. The Collateral Agent,
on behalf of the Secured Parties, shall have the right (in its sole and absolute
discretion) to hold the Pledged Securities in its own name as pledgee, the name
of its nominee (as pledgee or as sub-agent) or the name of the Parent, endorsed
or assigned in blank or in favor of the Collateral Agent. The Parent will
promptly give to the Collateral Agent copies of any material notices or other
communications received by it with respect to Pledged Securities registered in
the name of the Parent. The Collateral Agent shall at all times have the right
to exchange the certificates representing Pledged
<PAGE>

5

Securities for certificates of smaller or larger denominations for any purpose
consistent with this Agreement.

   SECTION 5. Voting Rights; Dividends and Interest, etc. (a) Unless and until a
Notice of Enforcement is in effect:

       (i)   The Parent shall be entitled to exercise any and all voting
   and/or other consensual rights and powers inuring to an owner of Pledged
   Securities or any part thereof for any purpose consistent with the terms
   of this Agreement, the other Support Documents and the Secured
   Instruments; provided, however, that the Parent will not be entitled to
   exercise any such right if the result thereof could materially and
   adversely affect the rights inuring to a holder of the Pledged
   Securities or the rights and remedies of any of the Secured Parties
   under this Agreement or any other Support Document or Secured Instrument
   or the ability of the Secured Parties to exercise the same.

       (ii)  The Collateral Agent shall execute and deliver to the
   Parent, or cause to be executed and delivered to the Parent, all such
   proxies, powers of attorney and other instruments as the Parent may
   reasonably request for the purpose of enabling the Parent to exercise
   the voting and/or consensual rights and powers it is entitled to
   exercise pursuant to subparagraph (i) above and to receive the cash
   dividends it is entitled to receive pursuant to subparagraph (iii)
   below.

       (iii) The Parent shall be entitled to receive and retain any and
   all cash dividends, interest and principal paid on the Pledged
   Securities to the extent and only to the extent that such cash
   dividends, interest and principal are permitted by, and otherwise paid
   in accordance with, the terms and conditions of the Support Documents,
   the Secured Instruments and applicable laws. While a Notice of
   Enforcement is in effect, all noncash dividends, interest and principal,
   and all dividends, interest and principal paid or payable in cash or
   otherwise in connection with a partial or total liquidation or
   dissolution, return of capital, capital surplus or paid-in surplus, and
   all
<PAGE>

6

   other distributions (other than distributions referred to in the
   preceding sentence) made on or in respect of the Pledged Securities,
   whether paid or payable in cash or otherwise, whether resulting from a
   subdivision, combination or reclassification of the outstanding capital
   stock of the issuer of any Pledged Securities or received in exchange
   for Pledged Securities or any part thereof, or in redemption thereof, or
   as a result of any merger, consolidation, acquisition or other exchange
   of assets to which such issuer may be a party or otherwise, shall be and
   become part of the Collateral, and, if received by the Parent, shall not
   be commingled by the Parent with any of its other funds or property but
   shall be held separate and apart therefrom, shall be held in trust for
   the benefit of the Collateral Agent and shall be forthwith delivered to
   the Collateral Agent in the same form as so received (with any necessary
   endorsement).

   (b) While a Notice of Enforcement is in effect, all rights of the Parent to
dividends, interest or principal that the Parent is authorized to receive
pursuant to paragraph (a)(iii) above shall cease, and all such rights shall
thereupon become vested in the Collateral Agent, which shall have the sole and
exclusive right and authority to receive and retain such dividends, interest or
principal. All dividends, interest or principal received by the Parent contrary
to the provisions of this Section 5 shall be held in trust for the benefit of
the Collateral Agent, shall be segregated from other property or funds of the
Parent and shall be forthwith delivered to the Collateral Agent upon demand in
the same form as so received (with any necessary endorsement). Any and all money
and other property paid over to or received by the Collateral Agent pursuant to
the provisions of this paragraph (b) shall be retained by the Collateral Agent
in the Enforcement Collateral Account upon receipt of such money or other
property and shall be applied in accordance with the provisions of Section 7.
After a Notice of Enforcement has been rescinded in accordance with the terms of
the Collateral Agency and Intercreditor Agreement, the Collateral Agent shall,
within five Business Days after all such Notices of Enforcement have been
rescinded, repay to the Parent all cash dividends, interest or principal
(without interest), that the Parent would otherwise be permitted to retain
pursuant to the terms of paragraph (a)(iii) above and which remain in the
Enforcement Collateral Account.
<PAGE>

7

   (c) While a Notice of Enforcement is in effect, all rights of the Parent to
exercise the voting and consensual rights and powers it is entitled to exercise
pursuant to paragraph (a)(i) of this Section 5, and the obligations of the
Collateral Agent under paragraph (a)(ii) of this Section 5, shall cease, and all
such rights shall thereupon become vested in the Collateral Agent, which shall
have the sole and exclusive right and authority to exercise such voting and
consensual rights and powers in a manner not inconsistent with the terms of this
Agreement, provided that, unless otherwise directed by the Required Secured
Parties, the Collateral Agent shall have the right from time to time while a
Notice of Enforcement is in effect to permit the Parent to exercise such rights.
After all Notices of Enforcement have been rescinded in accordance with the
terms of the Collateral Agency and Intercreditor Agreement, the Parent will have
the right to exercise the voting and consensual rights and powers that it would
otherwise be entitled to exercise pursuant to the terms of paragraph (a)(i)
above.

   SECTION 6. Remedies upon Default. While a Notice of Enforcement is in effect,
subject to applicable regulatory and legal requirements, the Collateral Agent
may sell the Collateral, or any part thereof, at public or private sale or at
any broker's board or on any securities exchange, for cash, upon credit or for
future delivery as the Collateral Agent shall deem appropriate subject to
applicable law and standards of commercial reasonableness. The Collateral Agent
shall be authorized at any such sale (if it deems it advisable to do so) to
restrict the prospective bidders or purchasers to Persons who will represent and
agree that they are purchasing the Collateral for their own account for
investment and not with a view to the distribution or sale thereof, and upon
consummation of any such sale the Collateral Agent shall have the right to
assign, transfer and deliver to the purchaser or purchasers thereof the
Collateral so sold. Each such purchaser at any such sale shall hold the property
sold absolutely free from any claim or right on the part of the Parent, and, to
the extent permitted by applicable law, the Parent hereby waives all rights of
redemption, stay, valuation and appraisal the Parent now has or may at any time
in the future have under any rule of law or statute now existing or hereafter
enacted.
<PAGE>

8

   The Collateral Agent shall give the Parent 10 days' prior written notice
(which the Parent agrees is reasonable notice within the meaning of Section 9-
504(3) of the Uniform Commercial Code as in effect in the State of New York or
its equivalent in other jurisdictions) of the Collateral Agent's intention to
make any sale of the Parent's Collateral. Such notice, in the case of a public
sale, shall state the time and place for such sale and, in the case of a sale at
a broker's board or on a securities exchange, shall state the board or exchange
at which such sale is to be made and the day on which the Collateral, or portion
thereof, will first be offered for sale at such board or exchange. Any such
public sale shall be held at such time or times within ordinary business hours
and at such place or places as the Collateral Agent may fix and state in the
notice of such sale. At any such sale, the Collateral, or portion thereof, to be
sold may be sold in one lot as an entirety or in separate parcels, as the
Collateral Agent may (in its sole and absolute discretion) determine. The
Collateral Agent shall not be obligated to make any sale of any Collateral if it
shall determine not to do so, regardless of the fact that notice of sale of such
Collateral shall have been given. The Collateral Agent may, without notice or
publication, adjourn any public or private sale or cause the same to be
adjourned from time to time by announcement at the time and place fixed for
sale, and such sale may, without further notice, be made at the time and place
to which the same was so adjourned. In case any sale of all or any part of the
Collateral is made on credit or for future delivery, the Collateral so sold may
be retained by the Collateral Agent until the sale price is paid in full by the
purchaser or purchasers thereof, but the Collateral Agent shall not incur any
liability in case any such purchaser or purchasers shall fail to take up and pay
for the Collateral so sold and, in case of any such failure, such Collateral may
be sold again upon like notice. Subject to Section 9.05 of the Collateral Agency
and Intercreditor Agreement, at any public (or, to the extent permitted by
applicable law, private) sale made pursuant to this Section 6, any Secured Party
may bid for or purchase, free from any right of redemption, stay or appraisal on
the part of the Parent (all said rights being also hereby waived and released),
the Collateral or any part thereof offered for sale. For purposes hereof, (a) a
written agreement to purchase the Collateral or any portion thereof shall be
treated as a sale thereof, (b) the Collateral Agent shall be free to carry out
such sale
<PAGE>

9

pursuant to such agreement and (c) the Parent shall not be entitled to the
return of the Collateral or any portion thereof subject thereto, notwithstanding
the fact that after the Collateral Agent shall have entered into such an
agreement the applicable Notice of Enforcement shall have been rescinded in
accordance with the terms of the Collateral Agency and Intercreditor Agreement
and the Obligations paid in full. As an alternative to exercising the power of
sale herein conferred upon it, the Collateral Agent may proceed by a suit or
suits at law or in equity to foreclose upon the Collateral and to sell the
Collateral or any portion thereof pursuant to a judgment or decree of a court or
courts having competent jurisdiction or pursuant to a proceeding by a court-
appointed receiver. Any sale pursuant to the provisions of this Section 6 shall
be deemed to conform to the commercially reasonable standards as provided in
Section 9-504(3) of the Uniform Commercial Code as in effect in the State of New
York or its equivalent in other jurisdictions.

   SECTION 7. Application of Proceeds of Sale. The proceeds of any sale of
Collateral pursuant to Section 6, as well as any Collateral consisting of cash,
shall be applied promptly by the Collateral Agent after receipt thereof as
provided in the Collateral Agency and Intercreditor Agreement.

   Upon any sale of the Collateral by the Collateral Agent (including pursuant
to a power of sale granted by statute or under a judicial proceeding), the
receipt of the purchase money by the Collateral Agent or of the officer making
the sale shall be a sufficient discharge to the purchaser or purchasers of the
Collateral so sold and such purchaser or purchasers shall not be obligated to
see to the application of any part of the purchase money paid over to the
Collateral Agent or such officer or be answerable in any way for the
misapplication thereof.

   SECTION 8. Reimbursement of Collateral Agent. (a) The Parent agrees to pay
upon demand to the Collateral Agent the amount of any and all reasonable
expenses, including the reasonable fees, other charges and disbursements of its
counsel and of any experts or agents, that the Collateral Agent may incur in
connection with (i) the administration of this Agreement, (ii) the custody or
preservation of, or the sale of, collection from, or other realization upon, any
of the Collateral, (iii) the exercise or enforcement of any of the rights of the
<PAGE>

10

Collateral Agent hereunder or (iv) the failure by the Parent to perform or
observe any of the provisions hereof.

   (b) Without limitation of its indemnification obligations under the other
Support Documents, the Parent agrees to indemnify the Collateral Agent and the
other Indemnitees against, and hold each Indemnitee harmless from, any and all
losses, claims, damages, liabilities and related expenses, including reasonable
counsel fees, other charges and disbursements, incurred by or asserted against
any Indemnitee arising out of, in any way connected with, or as a result of (i)
the execution or delivery of this Agreement or any other Support Document or any
agreement or instrument contemplated hereby or thereby, the performance by the
parties hereto of their respective obligations thereunder or the consummation of
the transactions contemplated hereby or (ii) any claim, litigation,
investigation or proceeding relating to any of the foregoing, whether or not any
Indemnitee is a party thereto, provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses have resulted from the gross negligence or
wilful misconduct of such Indemnitee.

   (c) Any amounts payable as provided hereunder shall be additional Obligations
secured hereby and by the other Security Documents. The provisions of this
Section 8 shall remain operative and in full force and effect regardless of the
termination of this Agreement or any other Support Document or any Secured
Instrument, the consummation of the transactions contemplated hereby, the
repayment of any of the Obligations, the invalidity or unenforceability of any
term or provision of this Agreement or any other Support Document or any Secured
Instrument or any investigation made by or on behalf of the Collateral Agent or
any other Secured Party. All amounts due under this Section 8 shall be payable
on written demand therefor and, if not paid within five Business Days after
written demand for payment is received by the Parent from the Collateral Agent,
shall bear interest at the rate specified in Section 2.11(c) of the Credit
Agreement.

   (d) To the extent that the Parent fails to pay any amount required to be paid
by them to the Collateral Agent under paragraph (a) or (b) of this Section, each
Secured Party severally agrees to pay to the Collateral Agent such Secured
Party's pro rata share (determined as of the time
<PAGE>

11

that the applicable unreimbursed expense or indemnity payment is sought) of such
unpaid amount; provided that the unreimbursed expense or indemnified loss,
claim, damaged, liability or related expense, as the case may be, was incurred
by or asserted against the Collateral Agent in its capacity as such. For
purposes hereof, a Secured Party's "pro rata share" shall be determined based
upon its share of the sum of the total outstanding loans and unused commitments
under the Secured Instruments at the time.

   SECTION 9. Collateral Agent Appointed Attorney-in-Fact. The Parent hereby
appoints the Collateral Agent, effective while a Notice of Enforcement is in
effect, the attorney-in-fact of the Parent for the purpose of carrying out the
provisions of this Agreement and taking any action and executing any instrument
that the Collateral Agent may deem necessary or advisable to accomplish the
purposes hereof, which appointment is irrevocable and coupled with an interest.
Without limiting the generality of the foregoing, the Collateral Agent shall
have the right, while a Notice of Enforcement is in effect, with full power of
substitution either in the Collateral Agent's name or in the name of the Parent,
to ask for, demand, sue for, collect, receive and give acquittance for any and
all moneys due or to become due under and by virtue of any Collateral, to
endorse checks, drafts, orders and other instruments for the payment of money
payable to the Parent representing any interest or dividend or other
distribution payable in respect of the Collateral or any part thereof or on
account thereof and to give full discharge for the same, to settle, compromise,
prosecute or defend any action, claim or proceeding with respect thereto, and to
sell, assign, endorse, pledge, transfer and to make any agreement respecting, or
otherwise deal with, the same, in each case in a manner not inconsistent with
the terms of this Agreement; provided, however, that nothing herein contained
shall be construed as requiring or obligating the Collateral Agent to make any
commitment or to make any inquiry as to the nature or sufficiency of any payment
received by the Collateral Agent, or to present or file any claim or notice, or
to take any action with respect to the Collateral or any part thereof or the
moneys due or to become due in respect thereof or any property covered thereby.
The Collateral Agent and the other Secured Parties shall be accountable only for
amounts actually received as a result of the exercise of the powers granted to
them herein, and neither they nor their officers,
<PAGE>

12

directors, employees or agents shall be responsible to the Parent for any act or
failure to act hereunder, except for their own gross negligence or wilful
misconduct.

   SECTION 10. Waivers; Amendment. (a) No failure or delay of the Collateral
Agent in exercising any power or right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Collateral Agent hereunder and of
the Collateral Agent and the other Secured Parties under the other Support
Documents and the Secured Instruments are cumulative and are not exclusive of
any rights or remedies that they would otherwise have. No waiver of any
provisions of this Agreement or consent to any departure by the Parent therefrom
shall in any event be effective unless the same shall be permitted by paragraph
(b) below, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. No notice or demand on
the Parent in any case shall entitle the Parent to any other or further notice
or demand in similar or other circumstances.

   (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to a written agreement entered into between the
Collateral Agent and the Parent, subject to any consent required in accordance
with Section 11.02 of the Collateral Agency and Intercreditor Agreement.

   SECTION 11. Securities Act, etc. In view of the position of the Parent in
relation to the Pledged Securities, or because of other current or future
circumstances, a question may arise under the Securities Act of 1933, as now or
hereafter in effect, or any similar statute hereafter enacted analogous in
purpose or effect (such Act and any such similar statute as from time to time in
effect being called the "Federal Securities Laws") with respect to any
disposition of the Pledged Securities permitted hereunder. The Parent
understands that compliance with the Federal Securities Laws might very strictly
limit the course of conduct of the Collateral Agent if the Collateral Agent were
to attempt to dispose of all or any part of the Pledged Securities, and might
also limit the extent to which or the manner in which any subsequent
<PAGE>

13

transferee of any Pledged Securities could dispose of the same. Similarly, there
may be other legal restrictions or limitations affecting the Collateral Agent in
any attempt to dispose of all or part of the Pledged Securities under applicable
Blue Sky or other state securities laws or similar laws analogous in purpose or
effect. The Parent recognizes that in light of such restrictions and limitations
the Collateral Agent may, with respect to any sale of the Pledged Securities,
limit the purchasers to those who will agree, among other things, to acquire
such Pledged Securities for their own account, for investment, and not with a
view to the distribution or resale thereof. The Parent acknowledges and agrees
that in light of such restrictions and limitations, the Collateral Agent, in its
sole and absolute discretion, (a) may proceed to make such a sale whether or not
a registration statement for the purpose of registering such Pledged Securities
or part thereof shall have been filed under the Federal Securities Laws and (b)
may approach and negotiate with a single potential purchaser to effect such
sale. The Parent acknowledges and agrees that any such sale might result in
prices and other terms less favorable to the seller than if such sale were a
public sale without such restrictions. In the event of any such sale, the
Collateral Agent shall incur no responsibility or liability for selling all or
any part of the Pledged Securities at a price that the Collateral Agent, in its
sole and absolute discretion, may in good faith deem reasonable under the
circumstances, notwithstanding the possibility that a substantially higher price
might have been realized if the sale were deferred until after registration as
aforesaid or if more than a single purchaser were approached. The provisions of
this Section 11 will apply notwithstanding the existence of a public or private
market upon which the quotations or sales prices may exceed substantially the
price at which the Collateral Agent sells.

   SECTION 12. Security Interest Absolute. All rights of the Collateral Agent
hereunder, the grant of a security interest in the Collateral and all
obligations of the Parent hereunder, shall be absolute and unconditional
irrespective of (a) any lack of validity or enforceability any Support Document
or Secured Instrument, any agreement with respect to any of the Obligations or
any other agreement or instrument relating to any of the foregoing, (b) any
change in the time, manner or place of payment of, or in any other term of, all
or any of the Obligations, or any other
<PAGE>

14

amendment or waiver of or any consent to any departure from any Support Document
or Secured Instrument or any other agreement or instrument relating to any of
the foregoing, (c) any exchange, release or nonperfection of any other
collateral, or any release or amendment or waiver of or consent to or departure
from any guaranty, for all or any of the Obligations or (d) any other
circumstance that might otherwise constitute a defense available to, or a
discharge of, the Parent in respect of the Obligations or in respect of this
Agreement (other than the indefeasible payment in full of all the Obligations).

   SECTION 13. Termination or Release. (a) This Agreement and the security
interests granted hereby shall terminate when all the Obligations have been
indefeasibly paid in full and all Secured Instrument Commitments shall have
terminated.

   (b) Subject to Section 9.03 of the Collateral Agency and Intercreditor
Agreement, upon any sale or other transfer by the Parent of any Collateral that
does not violate any Secured Instrument to any Person other than Holdings, the
Borrower or any Subsidiary Loan Party, the security interest in such Collateral
shall be automatically released.

   (c) In connection with any termination or release pursuant to paragraph (a)
or (b), the Collateral Agent shall execute and deliver to the Parent, at the
Parent's expense, all documents that the Parent shall reasonably request to
evidence such termination or release. Any execution and delivery of documents
pursuant to this Section 13 shall be without recourse to or warranty by the
Collateral Agent.

   SECTION 14. Notices. All communications and notices hereunder shall be in
writing and given as provided in Section 11.01 of the Collateral Agency and
Intercreditor Agreement; provided that any communication or notice hereunder to
the Parent shall be given to it at [__________], attention of [__________]
(Telecopy No. [__________]).

   SECTION 15. Further Assurances. The Parent agrees to do such further acts and
things, and to execute and deliver such additional conveyances, assignments,
agreements and instruments, as the Collateral Agent may at any time reasonably
request in connection with the administration and enforcement of this Agreement
or with respect to the Collateral or any part thereof or in order better to
assure
<PAGE>

15

and confirm unto the Collateral Agent its rights and remedies hereunder.

   SECTION 16. Binding Effect; Several Agreement; Assignments. Whenever in this
Agreement any of the parties hereto is referred to, such reference shall be
deemed to include the successors and assigns of such party; and all covenants,
promises and agreements by or on behalf of the Parent that are contained in this
Agreement shall bind and inure to the benefit of its successors and assigns.
This Agreement shall become effective as to the Parent when a counterpart hereof
executed on behalf of the Parent shall have been delivered to the Collateral
Agent and a counterpart hereof shall have been executed on behalf of the
Collateral Agent, and thereafter shall be binding upon the Parent and the
Collateral Agent and their respective successors and assigns, and shall inure to
the benefit of the Parent, the Collateral Agent and the other Secured Parties,
and their respective successors and assigns, except that the Parent shall not
have the right to assign its rights hereunder or any interest herein or in the
Collateral (and any such attempted assignment shall be void), except as
expressly contemplated by this Agreement or the other Loan Documents. Subject to
Section 9.03 of the Collateral Agency and Intercreditor Agreement, if all of the
capital stock of the Borrower or a Subsidiary Loan Party is sold, transferred or
otherwise disposed of to a Person other than the Borrower or a Subsidiary Loan
Party pursuant to a transaction that does not violate any Secured Instrument,
such capital stock shall be released from any security interest, lien or
encumbrance created under this Agreement without further action.

   SECTION 17. Survival of Agreement; Severability. (a) All covenants,
agreements, representations and warranties made by the Parent herein and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement or any other Support Document shall be considered to
have been relied upon by the Collateral Agent and the other Secured Parties and
shall survive the extension of credit by any Secured Party pursuant to a Secured
Instrument, regardless of any investigation made by the Secured Parties or on
their behalf, and shall continue in full force and effect until this Agreement
shall terminate.

   (b) In the event any one or more of the provisions
<PAGE>

16

contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired thereby
(it being understood that the invalidity of a particular provision in a
particular jurisdiction shall not in and of itself affect the validity of such
provision in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that
of the invalid, illegal or unenforceable provisions.

   SECTION 18. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

   SECTION 19. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original, but all of which, when
taken together, shall constitute a single contract, and shall become effective
as provided in Section 16. Delivery of an executed counterpart of a signature
page to this Agreement by facsimile transmission shall be as effective as
delivery of a manually executed counterpart of this Agreement.

   SECTION 20. Rules of Interpretation. The rules of interpretation specified in
Section 1.02 of the Collateral Agency and Intercreditor Agreement shall be
applicable to this Agreement. Section headings used herein are for convenience
of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting this
Agreement.

   SECTION 21. Jurisdiction; Consent to Service of Process. (a) The Parent
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the
Southern District of New York, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to any this Agreement or any
other Support Document, or for recognition or enforcement of any judgment, and
each of the parties hereto hereby irrevocably and unconditionally agrees that
all claims in respect of any such action or proceeding may be
<PAGE>

17

heard and determined in such New York State or, to the extent permitted by law,
in such Federal court. Each of the parties hereto agrees that a final judgment
in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by
law. Nothing in this Agreement or any other Support Document shall affect any
right that the Collateral Agent or any other Secured Party may otherwise have to
bring any action or proceeding relating to this Agreement or any other Loan
Document against the Parent or its properties in the courts of any jurisdiction.

   (b) The Parent hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection that it may now or
hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Agreement or any other Support Document in any New
York State or Federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient
forum to the maintenance of such action or proceeding in any such court.

   (c) Each party to this Agreement irrevocably consents to service of process
in the manner provided for notices in Section 14. Nothing in this Agreement will
affect the right of any party to this Agreement to serve process in any other
manner permitted by law.

   SECTION 22. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY
OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

   SECTION 23. Execution of Financing Statements. Pursuant to Section 9-402 of
the Uniform Commercial Code as in effect in the State of New York, the Parent
authorizes the Collateral Agent to file financing statements with
<PAGE>

18

respect to the Collateral owned by it without the signature of the Parent in
such form and in such filing offices as the Collateral Agent reasonably
determines appropriate to perfect the security interests of the Collateral Agent
under this Agreement. A carbon, photographic or other reproduction of this
Agreement shall be sufficient as a financing statement for filing in any
jurisdiction.

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

                            LEAP WIRELESS INTERNATIONAL, INC.,

                            By
                              --------------------------------------
                              Name:
                              Title:

                            STATE STREET BANK AND TRUST COMPANY, as
                            Collateral Agent,

                            By
                              --------------------------------------
                              Name:
                              Title:
<PAGE>

19

                                                               Schedule I to the
                                                                Pledge Agreement

                                 CAPITAL STOCK

                                                    Number and
                    Number of       Registered       Class of       Percentage
Issuer            Certificates        Owner           Shares         of Shares
------            ------------      ----------      ----------      ----------

                LIMITED LIABILITY COMPANY MEMBERSHIP INTERESTS

                                                                     Percentage
                                                    Number and          of
                    Number of       Registered       Class of        Membership
Issuer            Certificates        Owner           Shares        of Interests
------            ------------      ----------      ----------      ------------

                             PARTNERSHIP INTERESTS

                                                    Percentage of Limited
                    Number of       Limited or       General Partnership
Issuer            Certificates        General            Interests
------            ------------      ----------      ----------------------

                                DEBT SECURITIES

                   Principal         Date of          Maturity
Issuer              Amount            Notes             Date
------             ---------         -------          --------
<PAGE>

1

                                                                       EXHIBIT G

                                   [Form of]

                            PERFECTION CERTIFICATE

   Reference is made to (a) the Collateral Agency and Intercreditor Agreement
dated as of September 17, 1999 (as amended, supplemented or otherwise modified
from time to time, the "Collateral Agency and Intercreditor Agreement"), among
Cricket Wireless Communications, Inc. (the "Borrower"), the Representatives and
Unrepresented Holders referred to therein and State Street Bank and Trust
Company, as collateral agent (in such capacity, the "Collateral Agent") and (b)
the Security Agreement dated as of September 17, 1999 (as amended, supplemented
or otherwise modified from time to time, the "Security Agreement"), among the
Grantors (as defined therein) and the Collateral Agent. Capitalized terms used
herein and not defined herein shall have meanings assigned to such terms in the
Collateral Agency and Intercreditor Agreement and the Security Agreement.

   The undersigned, a Financial Officer and the chief legal officer,
respectively, of the Borrower, hereby certify to the Collateral Agent and each
other Secured Party as follows:

   1. Names. (a) The exact corporate name of each Grantor, as such name appears
in its respective certificate of incorporation, is as follows:

   (b) Set forth below is each other corporate name each Grantor has had in the
past five years, together with the date of the relevant change:

   (c) Except as set forth in Schedule 1 hereto, no Grantor has changed its
identity or corporate structure in any way within the past five years. Changes
in identity or corporate structure would include mergers, consolidations and
acquisitions, as well as any change in the form, nature or jurisdiction of
corporate organization. If any such change has occurred, include in Schedule 1
the information required by Sections 1 and 2 of this certificate as to each
acquiree or constituent party to a merger or consolidation.
<PAGE>

2

   (d) The following is a list of all other names (including trade names or
similar appellations) used by each Grantor or any of its divisions or other
business units in connection with the conduct of its business or the ownership
of its properties at any time during the past five years:

   (e) Set forth below is the Federal Taxpayer Identification Number of each
Grantor:

   2. Current Locations. (a) The chief executive office of each Grantor is
located at the address set forth opposite its name below:

Grantor           Mailing Address            County            State
-------           ---------------            ------            -----

   (b) Set forth below opposite the name of each Grantor are all locations where
such Grantor maintains any books or records relating to any Accounts Receivable
(with each location at which chattel paper, if any, is kept being indicated by
an "*"):

Grantor           Mailing Address            County            State
-------           ---------------            ------            -----

   (c) Set forth below opposite the name of each Grantor are all the places of
business of such Grantor not identified in paragraph (a) or (b) above:

Grantor           Mailing Address            County            State
-------           ---------------            ------            -----
<PAGE>

3

   (d) Set forth below opposite the name of each Grantor are all the locations
where such Grantor maintains any Collateral not identified above:

Grantor           Mailing Address            County            State
-------           ---------------            ------            -----

   (e) Set forth below opposite the name of each Grantor are the names and
addresses of all Persons other than such Grantor that have possession of any of
the Collateral of such Grantor:

Grantor           Mailing Address            County            State
-------           ---------------            ------            -----

   3. Unusual Transactions. All Accounts Receivable have been originated by the
Grantors and all Inventory has been acquired by the Grantors in the ordinary
course of business.

   4. File Search Reports. Attached hereto as Schedule 4(A) are true copies of
file search reports from the Uniform Commercial Code filing offices where
filings described in Schedule 6 are to be made. Attached hereto as Schedule 4(B)
is a true copy of each financing statement or other filing identified in such
file search reports.

   5. UCC Filings. Duly signed financing statements on Form UCC-1 in
substantially the form of Schedule 5 hereto have been prepared for filing in the
Uniform Commercial Code filing office in each jurisdiction where a Grantor has
Collateral as identified in Section 2 hereof.

   6. Schedule of Filings. Attached hereto as Schedule 6 is a schedule setting
forth, with respect to the filings
<PAGE>

4

described in Section 5 above, each filing and the filing office in which such
filing is to be made.

   7. Stock Ownership. Attached hereto as Schedule 7 is a true and correct list
of all the duly authorized, issued and outstanding Equity Interests of the
Borrower and each Subsidiary Loan Party and the record and beneficial owners of
such stock. Also set forth on Schedule 7 is each equity investment of the
Borrower and each Subsidiary Loan Party that represents 50% or less of the
equity of the entity in which such investment was made.

   8. Notes. Attached hereto as Schedule 8 is a true and correct list of all
notes held by the Borrower and each Subsidiary Loan Party and all intercompany
notes between the Borrower and each Subsidiary Loan Party and between each
Subsidiary Loan Party and each other Subsidiary Loan Party.

   9. Advances. Attached hereto as Schedule 9 is (a) a true and correct list of
all advances made by the Borrower to any Subsidiary Loan Party or made by any
Subsidiary Loan Party to the Borrower or any other Subsidiary Loan Party, which
advances will be on and after the date hereof evidenced by one or more
intercompany notes pledged to the Collateral Agent under the Pledge Agreement,
and (b) a true and correct list of all unpaid intercompany transfers of goods
sold and delivered by or to the Borrower or any Subsidiary Loan Party.

   10. Mortgage Filings. Attached hereto as Schedule 10 is a schedule setting
forth, with respect to each Mortgaged Property, (i) the exact corporate name of
the entity that owns such property as such name appears in its certificate of
formation, (ii) if different from the name identified pursuant to clause (i),
the exact name of the current record owner of such property reflected in the
records of the filing office for such property identified pursuant to the
following clause and (iii) the filing office in which a Mortgage with respect to
such property must be filed or recorded in order for the Collateral Agent to
obtain a perfected security interest therein.

   IN WITNESS WHEREOF, the undersigned have duly executed this certificate on
this [ ] day of [ ].
<PAGE>

5

                                        CRICKET WIRELESS
                                        COMMUNICATIONS, INC.,
                                        By
                                          --------------------------------------
                                        Name:
                                        Title: [Financial Officer]
                                        By
                                          --------------------------------------
                                        Name:
                                        Title: [Legal Officer]
<PAGE>

1

                                                                       EXHIBIT H

          SECURITY AGREEMENT dated as of September 17, 1999, among
       CRICKET WIRELESS COMMUNICATIONS, INC., a Delaware corporation
       (the "Borrower"), each subsidiary of the Borrower listed on
       Schedule I hereto (each a "Subsidiary", and, collectively, the
       "Subsidiaries"), each subsidiary of Leap Wireless International,
       Inc. (the "Parent") listed on Schedule I hereto (each a "License
       Subsidiary", and, collectively, the "License Subsidiaries"; each
       such Subsidiary and each such License Subsidiary individually, a
       "Guarantor" and, collectively the "Guarantors"; the Guarantors
       and the Borrower are referred to collectively herein as the
       "Grantors") and STATE STREET BANK AND TRUST COMPANY, as
       collateral agent (in such capacity, the "Collateral Agent") for
       the Secured Parties.

   Reference is made to the Collateral Agency and Intercreditor Agreement dated
as of September 17, 1999 (as amended, supplemented or otherwise modified from
time to time, the "Collateral Agency and Intercreditor Agreement") among the
Borrower, the Representatives and Unrepresented Holders referred to therein and
the Collateral Agent. Capitalized terms used herein and not defined herein shall
have the meanings assigned to such terms in the Collateral Agency and
Intercreditor Agreement. Each Grantor acknowledges receipt of a true and correct
copy of the Collateral Agency and Intercreditor Agreement and agrees to the
terms thereof.

   The Lenders have agreed to make Loans to the Borrower for the account of the
Borrower, pursuant to, and upon the terms and subject to the conditions
specified in, the Credit Agreement. Each of the Guarantors has agreed to
guarantee, among other things, all the obligations of the Borrower under the
Credit Agreement. The obligation of the Lenders to make Loans is conditioned
upon, among other things, the execution and delivery by the Grantors of an
agreement in the form hereof. The Borrower may from time to time incur Permitted
Additional Obligations that are required to be secured pursuant to the terms
hereof.
<PAGE>

2

   Accordingly, the Grantors and the Collateral Agent, on behalf of itself and
each Secured Party (and each of their respective successors or assigns), hereby
agree as follows:

                                   ARTICLE I

                                  Definitions

   SECTION 1.01. Definition of Terms Used Herein. Unless the context otherwise
requires, all capitalized terms used but not defined herein shall have the
meanings set forth in the Collateral Agency and Intercreditor Agreement.

   SECTION 1.02. Definition of Certain Terms Used Herein. As used herein, the
following terms shall have the following meanings:

   "Account Debtor" shall mean any Person who is or who may become obligated to
any Grantor under, with respect to or on account of an Account.

   "Accounts" shall mean any and all right, title and interest of any Grantor to
payment for goods and services sold or leased, including any such right
evidenced by chattel paper, whether due or to become due, whether or not it has
been earned by performance, and whether now or hereafter acquired or arising in
the future, including accounts receivable from Affiliates of the Grantors.

   "Accounts Receivable" shall mean all Accounts and all right, title and
interest in any returned goods, together with all rights, titles, securities and
guarantees with respect thereto, including any rights to stoppage in transit,
replevin, reclamation and resales, and all related security interests, liens and
pledges, whether voluntary or involuntary, in each case whether now existing or
owned or hereafter arising or acquired.

   "Collateral" shall mean all (a) Accounts Receivable, (b) Documents, (c)
Equipment, (d) General Intangibles, (e) Inventory, (f) cash and cash accounts,
(g) Investment Property and (h) Proceeds.
<PAGE>

3

   "Collateral Agency and Intercreditor Agreement" shall have the meaning
assigned to such term in the preliminary statements of this Agreement.
   "Commodity Account" shall mean an account maintained by a Commodity
Intermediary in which a Commodity Contract is carried out for a Commodity
Customer.

   "Commodity Contract" shall mean a commodity futures contract, an option on a
commodity futures contract, a commodity option or any other contract that, in
each case, is (a) traded on or subject to the rules of a board of trade that has
been designated as a contract market for such a contract pursuant to the federal
commodities laws or (b) traded on a foreign commodity board of trade, exchange
or market, and is carried on the books of a Commodity Intermediary for a
Commodity Customer.

   "Commodity Customer" shall mean a Person for whom a Commodity Intermediary
carries a Commodity Contract on its books.

   "Commodity Intermediary" shall mean (a) a Person who is registered as a
futures commission merchant under the federal commodities laws or (b) a Person
who in the ordinary course of its business provides clearance or settlement
services for a board of trade that has been designated as a contract market
pursuant to federal commodities laws.

   "Copyright License" shall mean any written agreement, now or hereafter in
effect, granting any right to any third party under any Copyright now or
hereafter owned by any Grantor or which such Grantor otherwise has the right to
license, or granting any right to such Grantor under any Copyright now or
hereafter owned by any third party, and all rights of such Grantor under any
such agreement.

   "Copyrights" shall mean all of the following now owned or hereafter acquired
by any Grantor: (a) all copyright rights in any work subject to the copyright
laws of the United States or any other country, whether as author, assignee,
transferee or otherwise, and (b) all registrations
<PAGE>

4

and applications for registration of any such copyright in the United States or
any other country, including registrations, recordings, supplemental
registrations and pending applications for registration in the United States
Copyright Office, including those listed on Schedule II.

   "Documents" shall mean all instruments, files, records, ledger sheets and
documents covering or relating to any of the Collateral.

   "Entitlement Holder" shall mean a Person identified in the records of a
Securities Intermediary as the Person having a Security Entitlement against the
Securities Intermediary. If a Person acquires a Security Entitlement by virtue
of Section 8-501(b)(2) or (3) of the Uniform Commercial Code, such Person is the
Entitlement Holder.

   "Equipment" shall mean all equipment, furniture and furnishings, and all
tangible personal property similar to any of the foregoing, including tools,
parts and supplies of every kind and description, and all improvements,
accessions or appurtenances thereto, that are now or hereafter owned by any
Grantor. The term Equipment shall include Fixtures.

   "Financial Asset" shall mean (a) a Security, (b) an obligation of a Person or
a share, participation or other interest in a Person or in property or an
enterprise of a Person, which is, or is of a type, dealt with in or traded on
financial markets, or which is recognized in any area in which it is issued or
dealt in as a medium for investment or (c) any property that is held by a
Securities Intermediary for another Person in a Securities Account if the
Securities Intermediary has expressly agreed with the other Person that the
property is to be treated as a Financial Asset under Article 8 of the Uniform
Commercial Code. As the context requires, the term Financial Asset shall mean
either the interest itself or the means by which a Person's claim to it is
evidenced, including a certificated or uncertificated Security, a certificate
representing a Security or a Security Entitlement.

   "Fixtures" shall mean all items of Equipment, whether now owned or hereafter
acquired, of any Grantor that become so related to particular real estate that
an interest in them arises under any real estate law applicable thereto.
<PAGE>

5

   "General Intangibles" shall mean all choses in action and causes of action
and all other assignable intangible personal property of any Grantor of every
kind and nature (other than Accounts Receivable) now owned or hereafter acquired
by any Grantor, including corporate or other business records, indemnification
claims, contract rights (including rights under leases, whether entered into as
lessor or lessee, Hedging Agreements and other agreements), Intellectual
Property, goodwill, registrations, franchises, tax refund claims and any letter
of credit, guarantee, claim, security interest or other security held by or
granted to any Grantor to secure payment by an Account Debtor of any of the
Accounts Receivable.

   "Intellectual Property" shall mean all intellectual and similar property of
any Grantor of every kind and nature now owned or hereafter acquired by any
Grantor, including inventions, designs, Patents, Copyrights, Licenses, Trade
marks, trade secrets, confidential or proprietary technical and business
information, know-how, show-how or other data or information, software and
databases and all embodiments or fixations thereof and related documentation,
registrations and franchises, and all additions, improvements and accessions to,
and books and records describing or used in connection with, any of the
foregoing.

   "Inventory" shall mean all goods of any Grantor, whether now owned or
hereafter acquired, held for sale or lease, or furnished or to be furnished by
any Grantor under contracts of service, or consumed in any Grantor's business,
including raw materials, intermediates, work in process, packaging materials,
finished goods, semi-finished inventory, scrap inventory, manufacturing supplies
and spare parts, and all such goods that have been returned to or repossessed by
or on behalf of any Grantor.

   "Investment Property" shall mean all Securities (whether certificated or
uncertificated), Security Entitlements, Securities Accounts, Commodity Contracts
and Commodity Accounts of any Grantor, whether now owned or hereafter acquired
by any Grantor.
<PAGE>

6

   "License" shall mean any Patent License, Trademark License, Copyright License
or other license or sublicense to which any Grantor is a party including those
listed on Schedule III (other than those license agreements which by their terms
prohibit assignment or a grant of a security interest by such Grantor as
licensee thereunder).

   "Patent License" shall mean any written agreement, now or hereafter in
effect, granting to any third party any right to make, use or sell any invention
on which a Patent, now or hereafter owned by any Grantor or which any Grantor
otherwise has the right to license, is in existence, or granting to any Grantor
any right to make, use or sell any invention on which a Patent, now or hereafter
owned by any third party, is in existence, and all rights of any Grantor under
any such agreement.

   "Patents" shall mean all of the following now owned or hereafter acquired by
any Grantor: (a) all letters patent of the United States or any other country,
all registrations and recordings thereof, and all applications for letters
patent of the United States or any other country, including registrations,
recordings and pending applications in the United States Patent and Trademark
Office or any similar offices in any other country, including those listed on
Schedule IV, and (b) all reissues, continuations, divisions, continuations-in-
part, renewals or extensions thereof, and the inventions disclosed or claimed
therein, including the right to make, use and/or sell the inventions disclosed
or claimed therein.

   "Perfection Certificate" shall mean a certificate substantially in the form
of Exhibit F to the Credit Agreement, completed and supplemented with the
schedules and attachments contemplated thereby, and duly executed by a Financial
Officer of the Borrower.

   "Proceeds" shall mean any consideration received from the sale, exchange,
license, lease or other disposition of any asset or property that constitutes
Collateral, any value received as a consequence of the possession of any
Collateral and any payment received from any insurer or other Person or entity
as a result of the destruction, loss, theft, damage or other involuntary
conversion of whatever
<PAGE>

7

nature of any asset or property which constitutes Collateral, and shall include,
(a) any claim of any Grantor against any third party for (and the right to sue
and recover for and the rights to damages or profits due or accrued arising out
of or in connection with) (i) past, present or future infringement of any Patent
now or hereafter owned by any Grantor, or licensed under a Patent License, (ii)
past, present or future infringement or dilution of any Trademark now or
hereafter owned by any Grantor or licensed under a Trademark License or injury
to the goodwill associated with or symbolized by any Trademark now or hereafter
owned by any Grantor, (iii) past, present or future breach of any License and
(iv) past, present or future infringement of any Copyright now or hereafter
owned by any Grantor or licensed under a Copyright License and (b) any and all
other amounts from time to time paid or payable under or in connection with any
of the Collateral.

   "Securities" shall mean any obligations of an issuer or any shares,
participations or other interests in an issuer or in property or an enterprise
of an issuer which (a) are represented by a certificate representing a security
in bearer or registered form, or the transfer of which may be registered upon
books maintained for that purpose by or on behalf of the issuer, (b) are one of
a class or series or by its terms is divisible into a class or series of shares,
participations, interests or obligations and (c)(i) are, or are of a type, dealt
with or trade on securities exchanges or securities markets or (ii) are a medium
for investment and by their terms expressly provide that they are a security
governed by Article 8 of the Uniform Commercial Code.

   "Securities Account" shall mean an account to which a Financial Asset is or
may be credited in accordance with an agreement under which the Person
maintaining the account undertakes to treat the Person for whom the account is
maintained as entitled to exercise rights that comprise the Financial Asset.

   "Security Entitlements" shall mean the rights and property interests of an
Entitlement Holder with respect to
<PAGE>

8

a Financial Asset.

   "Security Interest" shall have the meaning assigned to such term in Section
2.01.

   "Securities Intermediary" shall mean (a) a clearing corporation or (b) a
Person, including a bank or broker, that in the ordinary course of its business
maintains securities accounts for others and is acting in that capacity.

   "Trademark License" shall mean any written agreement, now or hereafter in
effect, granting to any third party any right to use any Trademark now or
hereafter owned by any Grantor or which any Grantor otherwise has the right to
license, or granting to any Grantor any right to use any Trademark now or
hereafter owned by any third party, and all rights of any Grantor under any such
agreement.

   "Trademarks" shall mean all of the following now owned or hereafter acquired
by any Grantor: (a) all domestic trademarks, service marks, trade names,
corporate names, company names, business names, fictitious business names, trade
styles, trade dress, logos, other source or business identifiers, designs and
general intangibles of like nature, now existing or hereafter adopted or
acquired in the United States, all registrations and recordings thereof in the
United States, and all registration and recording applications filed in
connection therewith, including registrations and registration applications in
the United States Patent and Trademark Office, any State of the United States or
any political subdivision thereof, and all extensions or renewals thereof,
including those listed on Schedule IV, (b) all goodwill associated therewith or
symbolized thereby and (c) all other assets, rights and interests that uniquely
reflect or embody such goodwill.

   SECTION 1.03. Rules of Interpretation. The rules of interpretation specified
in Section 1.02 of the Collateral Agency and Intercreditor Agreement shall be
applicable to this Agreement.

                                  ARTICLE II
<PAGE>

9

                               Security Interest

   SECTION 2.01. Security Interest. As security for the payment or performance,
as the case may be, in full of the Obligations, each Grantor hereby bargains,
sells, conveys, assigns, sets over, mortgages, pledges, hypothecates and
transfers to the Collateral Agent, its successors and assigns, for the ratable
benefit of the Secured Parties, and hereby grants to the Collateral Agent, its
successors and assigns, for the ratable benefit of the Secured Parties, a
security interest in, all of such Grantor's right, title and interest in, to and
under the Collateral (the "Security Interest"). Without limiting the foregoing,
the Collateral Agent is hereby authorized to file one or more financing
statements (including fixture filings), continuation statements, filings with
the United States Patent and Trademark Office or United States Copyright Office
(or any successor office or any similar office in any other country) or other
documents for the purpose of perfecting, confirming, continuing, enforcing or
protecting the Security Interest granted by each Grantor, without the signature
of any Grantor, and naming any Grantor or the Grantors as debtors and the
Collateral Agent as secured party.

   SECTION 2.02. No Assumption of Liability. The Security Interest is granted as
security only and shall not subject the Collateral Agent or any other Secured
Party to, or in any way alter or modify, any obligation or liability of any
Grantor with respect to or arising out of the Collateral.

                                  ARTICLE III

                        Representations and Warranties

   The Grantors jointly and severally represent and warrant to the Collateral
Agent and the Secured Parties that:

   SECTION 3.01. Title and Authority. Each Grantor has good title to, or valid
leasehold interest in, the
<PAGE>

10

Collateral material to its business with respect to which it has purported to
grant a Security Interest hereunder, except for minor defects in title that do
not interfere with its ability to conduct its business as currently conducted or
to utilize such properties for their intended purposes and subject to Liens
permitted by the Credit Agreement and has full power and authority to grant to
the Collateral Agent the Security Interest in such Collateral pursuant hereto
and to execute, deliver and perform its obligations in accordance with the terms
of this Agreement, without the consent or approval of any other Person other
than any consent or approval which has been obtained.

   SECTION 3.02. Filings. (a) The Perfection Certificate has been duly prepared,
completed and executed and the information set forth therein is correct and
complete in all material respects. Each Grantor has or will deliver to the
Collateral Agent fully executed Uniform Commercial Code financing statements
(including fixture filings, as applicable) or other appropriate filings,
recordings or registrations containing a description of the Collateral for
filing in each governmental, municipal or other office in the United States
requested by the Collateral Agent and specified in Schedule 6 to the Perfection
Certificate, which are all the filings, recordings and registrations (other than
filings required to be made in the United States Patent and Trademark Office and
the United States Copyright Office in order to perfect the Security Interest in
Collateral consisting of United States Patents, Trademarks and Copyrights) that
are necessary in the United States to publish notice of and protect the validity
of and to establish a legal, valid and perfected security interest in favor of
the Collateral Agent (for the ratable benefit of the Secured Parties) in respect
of all Collateral in which the Security Interest may be perfected by filing,
recording or registration in the United States (or any political subdivision
thereof) and its territories and possessions, and no further or subsequent
filing, refiling, recording, rerecording, registration or reregistration is
necessary in any such jurisdiction, except as provided under applicable law with
respect to the filing of continuation statements.

   (b) Each Grantor represents and warrants that fully executed security
agreements in the form hereof and
<PAGE>

11

containing a description of all Collateral consisting of Intellectual Property
shall have been received and recorded within three months after the execution of
this Agreement with respect to United States Patents and United States
registered Trademarks (and Trademarks for which United States registration
applications are pending) and within one month after the execution of this
Agreement with respect to United States registered Copyrights by the United
States Patent and Trademark Office and the United States Copyright Office
pursuant to 35 U.S.C. Section 261, 15 U.S.C. Section 1060 or 17 U.S.C. Section
205 and the regulations thereunder, as applicable, and otherwise as may be
required pursuant to the laws of any other necessary jurisdiction, to protect
the validity of and to establish a legal, valid and perfected security interest
in favor of the Collateral Agent (for the ratable benefit of the Secured
Parties) in respect of all Collateral consisting of Patents, Trademarks and
Copyrights in which a security interest may be perfected by filing, recording or
registration in the United States (or any political subdivision thereof) and its
territories and possessions, or in any other necessary jurisdiction, and no
further or subsequent filing, refiling, recording, rerecording, registration or
reregistration is necessary (other than such actions as are necessary to perfect
the Security Interest with respect to any Collateral consisting of Patents,
Trademarks and Copy rights (or registration or application for registration
thereof) acquired or developed after the date hereof).

   SECTION 3.03. Validity of Security Interest. The Security Interest
constitutes (a) a legal and valid security interest in all the Collateral
securing the payment and performance of the Obligations, (b) subject to the
filings described in Section 3.02 above, a perfected security interest in all
Collateral in which a security interest may be perfected by filing, recording or
registering a financing statement or analogous document in the United States (or
any political subdivision thereof) and its territories and possessions pursuant
to the Uniform Commercial Code or other applicable law in such jurisdictions and
(c) a security interest that shall be perfected in all Collateral in which a
security interest may be perfected upon the receipt and
<PAGE>

12

recording of this Agreement with the United States Patent and Trademark Office
and the United States Copyright Office, as applicable, within the three-month
period (commencing as of the date hereof) pursuant to 35 U.S.C. 261 or 15 U.S.C.
Section 1060 or the one-month period (commencing as of the date hereof) pursuant
to 17 U.S.C. Section 205 and otherwise as may be required pursuant to the laws
of any other necessary jurisdiction. The Security Interest is and shall be prior
to any other Lien on any of the Collateral, other than Liens expressly permitted
to be prior to the Security Interest under each Secured Instrument.

   SECTION 3.04. Absence of Other Liens. The Collateral is owned by the Grantors
free and clear of any Lien, except for Liens expressly permitted under each
Secured Instrument and except for restrictions on transfer, assignment, use and
rights of first refusal and similar rights under the terms of any leases,
licenses and other agreements under which the Grantors acquired rights in and to
Collateral. No Grantor has filed or consented to the filing of (a) any financing
statement or analogous document under the Uniform Commercial Code or any other
applicable laws covering any Collateral, (b) any assignment in which any Grantor
assigns any Collateral or any security agreement or similar instrument covering
any Collateral with the United States Patent and Trademark Office or the United
States Copyright Office or (c) any assignment in which any Grantor assigns any
Collateral or any security agreement or similar instrument covering any
Collateral with any foreign governmental, municipal or other office, which
financing statement or analogous document, assignment, security agreement or
similar instrument is still in effect, except, in each case, for Liens expressly
permitted under each Secured Instrument and except for financing statements
evidencing Liens being terminated on the Effective Date.

                                  ARTICLE IV

                                   Covenants

   SECTION 4.01. Change of Name; Location of Collateral; Records; Place of
Business. (a) Each Grantor agrees to promptly notify in writing the Collateral
Agent, but in no event later than 30 days after such change, of any change
<PAGE>

13

(i) in its corporate name or in any trade name used to identify it in the
conduct of its business or in the owner ship of its properties, (ii) in the
location of its chief executive office, its principal place of business, any
office in which it maintains books or records relating to Collateral owned by it
or any office or facility at which Collateral owned by it is located (including
the establishment of any such new office or facility), (iii) in its corporate
structure or (iv) in its Federal Taxpayer Identification Number. Each Grantor
agrees to make within 45 days, after the occurrence of any of the foregoing
changes, all filings under the Uniform Commercial Code or otherwise that are
required by the Collateral Agent in order for the Collateral Agent to continue
at all times following such change to have a valid, legal and perfected first
priority security interest in all the Collateral.

   (b) Each Grantor agrees to maintain, at its own cost and expense, such
complete and accurate records with respect to the Collateral owned by it as is
consistent with its current practices and in accordance with such prudent and
standard practices used in industries that are the same as or similar to those
in which such Grantor is engaged, but in any event to include complete
accounting records indicating all payments and proceeds received with respect to
any part of the Collateral.

   SECTION 4.02. Periodic Certification. Within 90 days after the end of each
fiscal year of the Borrower, the Borrower shall deliver to the Collateral Agent
a certificate executed by an executive officer or a Financial Officer of the
Borrower (a) setting forth the information required pursuant to Section 2 of the
Perfection Certificate or confirming that there has been no change in such
information since the date of such certificate or the date of the most recent
certificate delivered pursuant to this Section 4.02 and (b) certifying that all
Uniform Commercial Code financing statements (including fixture filings, as
applicable) or other appropriate filings, recordings or registra tions,
including all refilings, rerecordings and reregistrations, containing a
description of the Collateral have been filed of record in each governmental,
municipal or
<PAGE>

14

other appropriate office in each jurisdiction identified pursuant to clause (a)
above to the extent necessary to protect and perfect the Security Interest or
identifying such additional Uniform Commercial Code financing statements or
other appropriate filings, recordings or registrations as may be required to
protect and perfect the security interests hereunder which, upon the request of
the Collateral Agent, shall be filed, recorded or registered, in either case for
a period of not less than 18 months after the date of such certificate (except
as noted therein with respect to any continuation statements to be filed within
such period). Each certificate delivered pursuant to this Section 4.02 shall
identify in the format of Schedule II, III, IV or V, as applicable, all
Intellectual Property of any Grantor in existence on the date thereof and not
then listed on such Schedules or previously so identified to the Collateral
Agent.

   SECTION 4.03. Protection of Security. Each Grantor shall, at its own cost and
expense, take any and all reasonable actions necessary to defend title to the
Collateral against all Persons and to defend the Security Interest of the
Collateral Agent in the Collateral and the priority thereof against any Lien not
expressly permitted under each Secured Instrument.

   SECTION 4.04. Further Assurances. Each Grantor agrees, at its own expense,
(x) to execute, acknowledge, deliver and cause to be duly filed all such further
instruments and documents and take all such actions as the Collateral Agent may
from time to time reasonably request to better assure, preserve, protect and
perfect the Security Interest and the rights and remedies created hereby,
including the payment of any fees and taxes required in connection with the
execution and delivery of this Agreement, the granting of the Security Interest
and the filing of any financing statements (including fixture filings) or other
documents in connection herewith or therewith and (y) at the request of the
Collateral Agent, to enter into and to cause any Securities Intermediary through
which it holds Investment Property to enter into (or to reinvest through a
Securities Intermediary who will enter into) a control agreement, in form and
substance satisfactory to the Collateral Agent, pursuant to which such
Securities Intermediary grants "control", within the meaning
<PAGE>

15

of Section 8-106 of the Uniform Commercial Code of the State of New York, over
such Investment Property to the Collateral Agent. If any amount payable under or
in connection with any of the Collateral shall be or become evidenced by any
promissory note or other instrument, such note or instrument shall be forthwith
pledged and delivered to the Collateral Agent, duly endorsed in a manner
satisfactory to the Collateral Agent.

   Without limiting the generality of the foregoing, each Grantor hereby
authorizes the Collateral Agent, with prompt notice thereof to the Grantors, to
supplement this Agreement by supplementing Schedule II, III, IV or V hereto or
adding additional schedules hereto to specifically identify any asset or item
that may constitute Copyrights, Licenses, Patents or Trademarks; provided,
however, that any Grantor shall have the right, exercisable within 45 days after
it has been notified by the Collateral Agent of the specific identification of
such Collateral, to advise the Collateral Agent in writing of any inaccuracy of
the representations and warranties made by such Grantor hereunder with respect
to such Collateral. Each Grantor agrees that it will use its reasonable best
efforts to take such action as shall be necessary in order that all
representations and warranties hereunder shall be true and correct with respect
to such Collateral within 30 days after the date it has been notified by the
Collateral Agent of the specific identification of such Collateral.

   SECTION 4.05. Inspection and Verification. The Collateral Agent and such
Persons as the Collateral Agent may reasonably designate shall have the right,
at the Grantors' own cost and expense, to inspect the Collateral, all records
related thereto (and to make extracts and copies from such records) and the
premises upon which any of the Collateral is located, to discuss the Grantors'
affairs with the officers of the Grantors and their independent accountants and
to verify under reasonable procedures the validity, amount, quality, quantity,
value, condition and status of, or any other matter relating to, the Collateral,
including, in the case of Accounts or Collateral in the possession of any third
Person, by contacting Account
<PAGE>

16

Debtors while a Notice of Enforcement is in effect or the third Person
possessing such Collateral for the purpose of making such a verification. The
Collateral Agent shall have the absolute right to share any information it gains
from such inspection or verification with any Secured Party (it being understood
that any such information shall be deemed to be "Information" subject to the
provisions of Section 9.12 of the Credit Agreement).

   SECTION 4.06. Taxes; Encumbrances. At its option, the Collateral Agent may,
upon reasonable prior notice to Grantors, discharge past due taxes, assessments,
charges, fees, Liens, security interests or other encumbrances at any time
levied or placed on the Collateral and not permitted under any Secured
Instrument, and may pay for the maintenance and preservation of the Collateral
to the extent any Grantor fails to do so as required by any Secured Instrument
or this Agreement, and each Grantor jointly and severally agrees to reimburse
the Collateral Agent on demand for any payment made or any expense incurred by
the Collateral Agent pursuant to the foregoing authorization; provided, however,
that nothing in this Section 4.06 shall be interpreted as excusing any Grantor
from the performance of, or imposing any obligation on the Collateral Agent or
any Secured Party to cure or perform, any covenants or other promises of any
Grantor with respect to taxes, assessments, charges, fees, liens, security
interests or other encumbrances and maintenance as set forth herein or in the
other Support Documents or any Secured Instrument.

   SECTION 4.07. Assignment of Security Interest. If at any time any Grantor
shall take a security interest in any property of an Account Debtor or any other
Person to secure payment and performance of an Account to the extent permissible
under the document granting a security interest, such Grantor shall promptly
assign such security interest to the Collateral Agent. Such assignment need not
be filed of public record unless necessary to continue the perfected status of
the security interest against creditors of and transferees from the Account
Debtor or other Person granting the security interest.

   SECTION 4.08. Continuing Obligations of the Grantors. Each Grantor shall
remain liable to observe and perform all the conditions and obligations to be
observed and performed
<PAGE>

17

by it under each contract, agreement or instrument relating to the Collateral,
all in accordance with the terms and conditions thereof, and each Grantor
jointly and severally agrees to indemnify and hold harmless the Collateral Agent
and the Secured Parties from and against any and all liability for such
performance.

   SECTION 4.09. Use and Disposition of Collateral. None of the Grantors shall
make or permit to be made an assignment, pledge or hypothecation of the
Collateral or shall grant any other Lien in respect of the Collateral, except as
expressly permitted under each Secured Instrument. None of the Grantors shall
make, nor shall they permit to be made, any sale, conveyance, lease, assignment,
transfer or other disposition of any Collateral except as permitted under each
Secured Instrument and each Grantor shall remain at all times in possession of
the Collateral owned by it, except that unless and until the Collateral Agent
shall notify the Grantors that a Notice of Enforcement is in effect and that
while such Notice of Enforcement is in effect, the Grantors may use and dispose
of the Collateral in any lawful manner not inconsistent with the provisions of
this Agreement, or any other Support Document or any Secured Instrument. Without
limiting the generality of the foregoing, each Grantor agrees that it shall not
permit any Inventory to be in the possession or control of any warehouseman,
bailee, agent or processor at any time unless such warehouseman, bailee, agent
or processor shall have been notified of the Security Interest and shall have
agreed in writing to hold the Inventory subject to the Security Interest and the
instructions of the Collateral Agent and to waive and release any Lien held by
it with respect to such Inventory, whether arising by operation of law or
otherwise.

   SECTION 4.10. Limitation on Modification of Accounts. None of the Grantors
will, without the Collateral Agent's prior written consent, grant any extension
of the time of payment of any of the Accounts Receivable in the aggregate,
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 whatsoever thereon, other than extensions, credits,
<PAGE>

18

discounts, compromises or settlements granted or made in the ordinary course of
business and consistent with its good faith business judgment.

   SECTION 4.11. Insurance. The Grantors, at their own expense, shall maintain
or cause to be maintained insurance covering physical loss or damage to the
Inventory and Equipment in accordance with the applicable requirements of each
Secured Instrument. Each Grantor irrevocably makes, constitutes and appoints the
Collateral Agent (and all officers, employees or agents designated by the
Collateral Agent) as such Grantor's true and lawful agent (and attorney-in-fact)
for the purpose, while a Notice of Enforcement is in effect, of making, settling
and adjusting claims in respect of Collateral under policies of insurance,
endorsing the name of such Grantor on any check, draft, instrument or other item
of payment for the proceeds of such policies of insurance and for making all
determinations and decisions with respect thereto. In the event that any Grantor
at any time or times shall fail to obtain or maintain any of the policies of
insurance required hereby or to pay any premium in whole or part relating
thereto, the Collateral Agent may, without waiving or releasing any obligation
or liability of the Grantors hereunder or any event that could result in a
Notice of Enforcement, in its sole reasonable discretion, obtain and maintain
such policies of insurance and pay such premium and take any other actions with
respect thereto as the Collateral Agent deems advisable. All sums disbursed by
the Collateral Agent in connection with this Section 4.11, including reasonable
attorneys' fees, court costs, expenses and other charges relating thereto, shall
be payable, upon demand, by the Grantors to the Collateral Agent and shall be
additional Obligations secured hereby.

   SECTION 4.12. Legend. Each Grantor shall upon written request legend, in form
and manner reasonably satisfactory to the Collateral Agent, its Accounts
Receivable and its books, records and, to the extent applicable, documents
evidencing or pertaining thereto with an appropriate reference to the fact that
such Accounts Receivable have been collaterally assigned to the Collateral Agent
for the benefit of the Secured Parties and that the Collateral Agent has a
security interest therein.
<PAGE>

19

   SECTION 4.13. Covenants Regarding Patent, Trademark and Copyright Collateral.
   (a) Each Grantor agrees that it will not, and it will exercise its best
efforts to ensure that its licensees will not, do any act, or omit to do any
act, whereby any Patent which is material to the conduct of such Grantor's
business may become invalidated or dedicated to the public, and agrees that it
shall continue to mark any products covered by a Patent with the relevant patent
number as necessary and sufficient to establish and preserve its maximum rights
under applicable patent laws.

   (b) Each Grantor (either itself or through its licensees or its sublicensees)
will, for each Trademark material to the conduct of such Grantor's business, (i)
maintain such Trademark in full force free from any claim of abandonment or
invalidity for non-use, (ii) maintain the quality of products and services
offered under such Trademark, (iii) display such Trademark with notice of
Federal or foreign registration to the extent necessary and sufficient to
establish and preserve its maximum rights under applicable law and (iv) not
knowingly use or knowingly permit the use of such Trademark in violation of any
third party rights.

   (c) Each Grantor (either itself or through licensees) will, for each work
material to the conduct of Grantor's business covered by a material Copyright,
continue to publish, reproduce, display, adopt and distribute the work with
appropriate copyright notice as necessary and sufficient to establish and
preserve its rights under applicable copyright laws.

   (d) Each Grantor shall notify the Collateral Agent promptly if it knows that
any Patent, Trademark or Copyright material to the conduct of the business of
the Grantors (taken as a whole) may reasonably be expected to become abandoned,
lost or dedicated to the public, or of any material adverse determination or
development (including the institution of, or any such determination or
development in, any proceeding in the United States Patent and Trademark Office,
United States Copyright Office or any court or similar office of any country)
regarding such Grantor's
<PAGE>

20

ownership of any such Patent, Trademark or Copyright, its right to register the
same, or to keep and maintain the same.

   (e) In the event that any Grantor shall, either itself or through any agent,
employee, licensee or designee, file an application for any Patent, Trademark or
Copyright (or for the registration of any Trademark or Copyright) with the
United States Patent and Trademark Office, United States Copyright Office or any
office or agency in any political subdivision of the United States or in any
other country or any political subdivision thereof, such Grantor shall promptly
thereafter inform the Collateral Agent of such action, and, upon request of the
Collateral Agent, execute and deliver any and all agreements, instruments,
documents and papers as the Collateral Agent may reasonably request to evidence
the Collateral Agent's security interest in such Patent, Trademark or Copyright,
and such Grantor hereby appoints the Collateral Agent as its attorney-in-fact to
execute and file such writings for the foregoing purposes, all acts of such
attorney being hereby ratified and confirmed; such power, being coupled with an
interest, is irrevocable.

   (f) Each Grantor will take all necessary steps that are consistent with the
practice in any proceeding before the United States Patent and Trademark Office,
United States Copyright Office or any office or agency in any political
subdivision of the United States or in any other country or any political
subdivision thereof, to maintain and pursue each material application relating
to the Patents, Trademarks and/or Copyrights (excluding applications which a
Grantor abandons pursuant to good faith business considerations) (and to obtain
the relevant grant or registration) and to maintain each issued Patent and each
registration of the Trademarks and Copyrights that is material to the conduct of
the business of the Grantors (taken as a whole), including timely filings of
applications for renewal, affidavits of use, affidavits of incontestability and
payment of maintenance fees, and, if consistent with good business judgment, to
initiate opposition, interference and cancelation proceedings against third
parties.

   (g) In the event that any Grantor has reason to
<PAGE>

21

believe that any Collateral consisting of a Patent, Trademark or Copyright
material to the conduct of the business of the Grantors (taken as a whole) has
been or is about to be infringed, misappropriated or diluted by a third party in
any material respect, such Grantor promptly shall notify the Collateral Agent
and shall, if consistent with good business judgment, promptly sue for
infringement, misappropriation or dilution and to recover any and all damages
for such infringement, misappropriation or dilution, and take such other actions
as are appropriate under the circumstances to protect such Collateral.

   (h) While a Notice of Enforcement is in effect, if requested by the
Collateral Agent, each Grantor shall use reasonable efforts to obtain all
requisite consents or approvals by the licensor of each Copyright License,
Patent License or Trademark License to effect the assignment of all of such
Grantor's right, title and interest thereunder to the Collateral Agent or its
designee.

                                   ARTICLE V

                               Power of Attorney

   Each Grantor irrevocably makes, constitutes and appoints the Collateral Agent
(and all officers, employees or agents designated by the Collateral Agent) as
such Grantor's true and lawful agent and attorney-in-fact, and in such capacity
the Collateral Agent shall have the right, with power of substitution for each
Grantor and in each Grantor's name or otherwise, for the use and benefit of the
Collateral Agent and the Secured Parties, while a Notice of Enforcement is in
effect (a) to receive, endorse, assign and/or deliver any and all notes,
acceptances, checks, drafts, money orders or other evidences of payment relating
to the Collateral or any part thereof; (b) to demand, collect, receive payment
of, give receipt for and give discharges and releases of all or any of the
Collateral; (c) to sign the name of any Grantor on any invoice or bill of lading
relating to any of the Collateral; (d) to send verifications of Accounts
Receivable to any Account Debtor;
<PAGE>

22

   (e) to commence and prosecute any and all suits, actions or proceedings at
law or in equity in any court of competent jurisdiction to collect or otherwise
realize on all or any of the Collateral or to enforce any rights in respect of
any Collateral; (f) to settle, compromise, compound, adjust or defend any
actions, suits or proceedings relating to all or any of the Collateral; (g) to
notify, or to require any Grantor to notify, Account Debtors to make payment
directly to the Collateral Agent; and (h) to use, sell, assign, transfer,
pledge, make any agreement with respect to or otherwise deal with all or any of
the Collateral, and to do all other acts and things necessary to carry out the
purposes of this Agreement, as fully and completely as though the Collateral
Agent were the absolute owner of the Collateral for all purposes, in each case
in a manner not inconsistent with the terms of this Agreement and on terms that
are commercially reasonable and in compliance with any mandatory requirements of
applicable law; provided, however, that nothing herein contained shall be
construed as requiring or obligating the Collateral Agent or any Secured Party
to make any commitment or to make any inquiry as to the nature or sufficiency of
any payment received by the Collateral Agent or any Secured Party, or to present
or file any claim or notice, or to take any action with respect to the
Collateral or any part thereof or the moneys due or to become due in respect
thereof or any property covered thereby, and no action taken or omitted to be
taken by the Collateral Agent or any Secured Party with respect to the
Collateral or any part thereof shall give rise to any defense, counterclaim or
offset in favor of any Grantor or to any claim or action against the Collateral
Agent or any Secured Party. It is understood and agreed that the appointment of
the Collateral Agent as the agent and attorney-in-fact of the Grantors for the
purposes set forth above is coupled with an interest and is irrevocable. The
provisions of this Section shall in no event relieve any Grantor of any of its
obligations hereunder or under any other Support Document or any Secured
Instrument with respect to the Collateral or any part thereof or impose any
obligation on the Collateral Agent or any Secured Party to proceed in any
particular manner with respect to the Collateral or any part thereof, or in any
way limit the
<PAGE>

23

exercise by the Collateral Agent or any Secured Party of any other or further
right which it may have on the date of this Agreement or hereafter, whether
hereunder, under any other Support Document or any Secured Instrument, by law or
otherwise.

                                  ARTICLE VI

                                   Remedies

   SECTION 6.01. Remedies upon Default. While a Notice of Enforcement is in
effect, each Grantor agrees to deliver each item of Collateral to the Collateral
Agent forthwith on demand to the extent reasonably practicable, and it is agreed
that the Collateral Agent shall have the right to take any of or all the
following actions at the same or different times (subject to any mandatory
requirements of law and standards of commercial reasonableness that cannot be
waived by contract): (a) with respect to any Collateral consisting of
Intellectual Property, on demand, to cause the Security Interest to become an
assignment, transfer and conveyance of any of or all such Collateral by the
applicable Grantors to the Collateral Agent, or to license or sublicense,
whether general, special or otherwise, and whether on an exclusive or non-
exclusive basis, any such Collateral throughout the world on such terms and
conditions and in such manner as the Collateral Agent shall determine (other
than in violation of any then-existing licensing arrangements to the extent that
waivers cannot be obtained) and (b) with or without legal process and with or
without prior notice or demand for performance, to take possession of the
Collateral and to enter any premises owned or leased by the Grantors where the
Collateral may be located for the purpose of taking possession of or removing
the Collateral and, generally, to exercise any and all rights afforded to a
secured party under the Uniform Commercial Code or other applicable law. Without
limiting the generality of the foregoing, each Grantor agrees that the
Collateral Agent shall have the right, subject to the mandatory requirements of
applicable law, to sell or otherwise dispose of all or any part of the
Collateral, at public or private sale or at
<PAGE>

24

any broker's board or on any securities exchange, for cash, upon credit or for
future delivery as the Collateral Agent shall deem appropriate and commercially
reasonable. The Collateral Agent shall be authorized at any such sale (if it
deems it advisable to do so) to restrict the prospective bidders or purchasers
to Persons who will represent and agree that they are purchasing the Collateral
for their own account for investment and not with a view to the distribution or
sale thereof, and upon consummation of any such sale the Collateral Agent shall
have the right to assign, transfer and deliver to the purchaser or purchasers
thereof the Collateral so sold. Each such purchaser at any such sale shall hold
the property sold absolutely, free from any claim or right on the part of any
Grantor, and each Grantor hereby waives (to the extent permitted by law) all
rights of redemption, stay and appraisal which such Grantor now has or may at
any time in the future have under any rule of law or statute now existing or
hereafter enacted.

   The Collateral Agent shall give the Grantors 10 days' written notice (which
each Grantor agrees is reasonable notice within the meaning of Section 9-504(3)
of the Uniform Commercial Code as in effect in the State of New York or its
equivalent in other jurisdictions) of the Collateral Agent's intention to make
any sale of Collateral. Such notice, in the case of a public sale, shall state
the time and place for such sale and, in the case of a sale at a broker's board
or on a securities exchange, shall state the board or exchange at which such
sale is to be made and the day on which the Collateral, or portion thereof, will
first be offered for sale at such board or exchange. Any such public sale shall
be held at such time or times within ordinary business hours and at such place
or places as the Collateral Agent may fix and state in the notice (if any) of
such sale. At any such sale, the Collateral, or portion thereof, to be sold may
be sold in one lot as an entirety or in separate parcels, as the Collateral
Agent may (in its sole and absolute discretion) determine. The Collateral Agent
shall not be obligated to make any sale of any Collateral if it shall determine
not to do so, regardless of the fact that notice of sale of such Collateral
shall have been given. The Collateral Agent may, without notice or publication,
adjourn any public or private sale or cause the same to be adjourned from time
to time by announcement at the time and place fixed for sale, and such sale may,
without further
<PAGE>

25

notice, be made at the time and place to which the same was so adjourned. In
case any sale of all or any part of the Collateral is made on credit or for
future delivery, the Collateral so sold may be retained by the Collateral Agent
until the sale price is paid by the purchaser or purchasers thereof, but the
Collateral Agent shall not incur any liability in case any such purchaser or
purchasers shall fail to take up and pay for the Collateral so sold and, in case
of any such failure, such Collateral may be sold again upon like notice. Subject
to Section 9.05 of the Collateral Agency and Intercreditor Agreement, at any
public (or, to the extent permitted by applicable law, private) sale made
pursuant to this Section, any Secured Party may bid for or purchase, free from
any right of redemption, stay or appraisal on the part of any Grantor (all said
rights being also hereby waived and released), the Collateral or any part
thereof offered for sale and such Secured Party may, upon compliance with the
terms of sale, hold, retain and dispose of such property without further
accountability to any Grantor therefor. For purposes hereof, a written agreement
to purchase the Collateral or any portion thereof shall be treated as a sale
thereof; the Collateral Agent shall be free to carry out such sale pursuant to
such agreement and no Grantor shall be entitled to the return of the Collateral
or any portion thereof subject thereto, notwithstanding the fact that after the
Collateral Agent shall have entered into such an agreement the applicable Notice
of Enforcement shall have been rescinded in accordance with the terms of the
Collateral Agency and Intercreditor Agreement remedied and the Obligations paid
in full. As an alternative to exercising the power of sale herein conferred upon
it, the Collateral Agent may proceed by a suit or suits at law or in equity to
foreclose this Agreement and to sell the Collateral or any portion thereof
pursuant to a judgment or decree of a court or courts having competent
jurisdiction or pursuant to a proceeding by a court-appointed receiver.

   SECTION 6.02. Application of Proceeds. The Collateral Agent shall apply
promptly the proceeds of any collection or sale of the Collateral, as well as
any Collateral consisting of cash, as provided in the Collateral Agency and
Intercreditor Agreement.
<PAGE>

26

   Upon any sale of the Collateral by the Collateral Agent (including pursuant
to a power of sale granted by statute or under a judicial proceeding), the
receipt of the Collateral Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold
and such purchaser or purchasers shall not be obligated to see to the
application of any part of the purchase money paid over to the Collateral Agent
or such officer or be answerable in any way for the misapplication thereof.

   SECTION 6.03. Grant of License to Use Intellectual Property. For the purpose
of enabling the Collateral Agent to exercise rights and remedies under this
Article at such time as the Collateral Agent shall be lawfully entitled to
exercise such rights and remedies, each Grantor hereby grants to the Collateral
Agent an irrevocable, non-exclusive license (exercisable without payment of
royalty or other compensation to the Grantors) to use, license or sub-license
any of the Collateral consisting of Intellectual Property now owned or hereafter
acquired by such Grantor (to the extent not prohibited by the terms of any
license agreement pursuant to which such Grantor is a licensee), and wherever
the same may be located, and including in such license reasonable access to all
media in which any of the licensed items may be recorded or stored and to all
computer software and programs used for the compilation or printout thereof. The
use of such license by the Collateral Agent shall be exercised, at the option of
the Collateral Agent, while a Notice of Enforcement is in effect; provided that
any license, sub-license or other transaction entered into by the Collateral
Agent in accordance herewith shall be binding upon the Grantors notwithstanding
whether such Notice of Enforcement is subsequently rescinded in accordance with
the terms of the Collateral Agency and Intercreditor Agreement.

                                  ARTICLE VII

                                 Miscellaneous

   SECTION 7.01. Notices. All communications and notices hereunder shall (except
as otherwise expressly permitted herein) be in writing and given as provided in
Section 11.01
<PAGE>

27

of the Collateral Agency and Intercreditor Agreement. All communications and
notices hereunder to any Grantor shall be given to it at its address or telecopy
number set forth on Schedule I, with a copy to the Borrower.

   SECTION 7.02. Security Interest Absolute. All rights of the Collateral Agent
hereunder, the Security Interest and all obligations of the Grantors hereunder
shall be absolute and unconditional irrespective of (a) any lack of validity or
enforceability of any Support Document or Secured Instrument, any other Loan
Document, any agreement with respect to any of the Obligations or any other
agreement or instrument relating to any of the foregoing, (b) any change in the
time, manner or place of payment of, or in any other term of, all or any of the
Obligations, or any other amendment or waiver of or any consent to any departure
from any Support Document or Secured Instrument, any other Loan Document or any
other agreement or instrument, (c) any exchange, release or non-perfection of
any Lien on other collateral, or any release or amendment or waiver of or
consent under or departure from any guarantee, securing or guaranteeing all or
any of the Obligations, or (d) any other circumstance that might otherwise
constitute a defense available to, or a discharge of, any Grantor in respect of
the Obligations or this Agreement.

   SECTION 7.03. Survival of Agreement. All covenants, agreements,
representations and warranties made by any Grantor herein and in the
certificates or other instruments prepared or delivered in connection with or
pursuant to this Agreement shall be considered to have been relied upon by the
Secured Parties and shall survive the extension of credit by any Secured Party,
and the execution and delivery to the Secured Parties of any notes evidencing
such extensions of credit, regardless of any investigation made by the Secured
Parties or on their behalf, and shall continue in full force and effect until
this Agreement shall terminate.

   SECTION 7.04. Binding Effect; Several Agreement. This Agreement shall become
effective as to any Grantor when a counterpart hereof executed on behalf of such
Grantor shall
<PAGE>

28

have been delivered to the Collateral Agent and a counterpart hereof shall have
been executed on behalf of the Collateral Agent, and thereafter shall be binding
upon such Grantor and the Collateral Agent and their respective successors and
assigns, and shall inure to the benefit of such Grantor, the Collateral Agent
and the other Secured Parties and their respective successors and assigns,
except that no Grantor shall have the right to assign or transfer its rights or
obligations hereunder or any interest herein or in the Collateral (and any such
assignment or transfer shall be void) except as expressly contemplated by this
Agreement and the other Support Documents. This Agreement shall be construed as
a separate agreement with respect to each Grantor and may be amended, modified,
supplemented, waived or released with respect to any Grantor without the
approval of any other Grantor and without affecting the obligations of any other
Grantor hereunder.

   SECTION 7.05. Successors and Assigns. Whenever in this Agreement any of the
parties hereto is referred to, such reference shall be deemed to include the
successors and assigns of such party; and all covenants, promises and agreements
by or on behalf of any Grantor or the Collateral Agent that are contained in
this Agreement shall bind and inure to the benefit of their respective
successors and assigns.

   SECTION 7.06. Collateral Agent's Fees and Expenses; Indemnification. (a) Each
Grantor jointly and severally agrees to pay upon demand to the Collateral Agent
the amount of any and all reasonable expenses, including the reasonable fees,
disbursements and other charges of its counsel and of any experts or agents,
which the Collateral Agent may incur in connection with (i) the administration
of this Agreement, (ii) the custody or preservation of, or the sale of,
collection from or other realization upon any of the Collateral, (iii) the
exercise, enforcement or protection of any of the rights of the Collateral Agent
hereunder or (iv) the failure of any Grantor to perform or observe any of the
provisions hereof.

   (b) Without limitation of its indemnification obligations under the other
Support Documents, each Grantor jointly and severally agrees to indemnify the
Collateral Agent and the other Indemnitees against, and hold each of
<PAGE>

29

them harmless from, any and all losses, claims, damages, liabilities and related
expenses, including reasonable fees, disbursements and other charges of counsel,
incurred by or asserted against any of them arising out of, in any way connected
with, or as a result of, the execution, delivery or performance of this
Agreement or any claim, litigation, investigation or proceeding relating hereto
or to the Collateral, whether or not any Indemnitee is a party thereto; provided
that such indemnity shall not, as to any Indemnitee, be available to the extent
that such losses, claims, damages, liabilities or related expenses have resulted
from the gross negligence or willful misconduct of such Indemnitee.

   (c) Any such amounts payable as provided hereunder shall be additional
Obligations secured hereby and by the other Security Documents. The provisions
of this Section 7.06 shall remain operative and in full force and effect
regardless of the termination of this Agreement or any other Support Document or
any Secured Instrument, the consummation of the transactions contemplated
hereby, the repayment of any of the Obligations, the invalidity or
unenforceability of any term or provision of this Agreement or any other Support
Document, or any investigation made by or on behalf of the Collateral Agent or
any other Secured Party. All amounts due under this Section 7.06 shall be
payable on written demand therefor.

   SECTION 7.07. GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK.

   SECTION 7.08. Waivers; Amendment. (a) No failure or delay of the Collateral
Agent in exercising any power or right hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power,
preclude any other or further exercise thereof or the exercise of any other
right or power. The rights and remedies of the Collateral Agent hereunder and of
the Collateral Agent, and the Secured Parties under the other Support Documents
and the Secured
<PAGE>

30

Instruments are cumulative and are not exclusive of any rights or remedies that
they would otherwise have. No waiver of any provisions of this Agreement or any
other Support Document or consent to any departure by any Grantor therefrom
shall in any event be effective unless the same shall be permitted by paragraph
(b) below, and then such waiver or consent shall be effective only in the
specific instance and for the purpose for which given. No notice to or demand on
any Grantor in any case shall entitle such Grantor or any other Grantor to any
other or further notice or demand in similar or other circumstances.

   (b) Neither this Agreement nor any provision hereof may be waived, amended or
modified except pursuant to an agreement or agreements in writing entered into
by the Collateral Agent and the Grantor or Grantors with respect to which such
waiver, amendment or modification is to apply, subject to any consents required
in accordance with Section 11.02 of the Collateral Agency and Intercreditor
Agreement.

   SECTION 7.09. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER
OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER SUPPORT DOCUMENTS. EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B)
ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER SUPPORT DOCUMENTS, AS APPLICABLE, BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.09.

   SECTION 7.10. Severability. In the event any one or more of the provisions
contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected
<PAGE>

31

or impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the
validity of such provision in any other jurisdiction). The parties shall
endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

   SECTION 7.11. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original but all of which when
taken together shall constitute but one contract (subject to Section 7.04), and
shall become effective as provided in Section 7.04. Delivery of an executed
signature page to this Agreement by facsimile transmission shall be effective as
delivery of a manually executed counterpart hereof.

   SECTION 7.12. Headings. Article and Section headings used herein are for the
purpose of reference only, are not part of this Agreement and are not to affect
the construction of, or to be taken into consideration in interpreting, this
Agreement.

   SECTION 7.13. Jurisdiction; Consent to Service of Process. (a) Each Guarantor
hereby irrevocably and unconditionally submits, for itself and its property, to
the nonexclusive jurisdiction of the Supreme Court of the State of New York
sitting in New York County and of the United States District Court of the
Southern District of New York, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement or any other
Support Document, or for recognition or enforcement of any judgment, and each of
the parties hereto hereby irrevocably and unconditionally agrees that all claims
in respect of any such action or proceeding may be heard and determined in such
New York State or, to the extent permitted by law, in such Federal court. Each
of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by
suit on the judgment or in any other manner provided by law. Nothing in this
Agreement or any other Support Document shall affect any right that the
Collateral Agent or any Secured Party may otherwise have to bring any action or
proceeding relating to this Agreement or

<PAGE>

32

any other Support Document against any Grantor or its properties in the courts
of any jurisdiction.

   (b) Each Grantor hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may
now or hereafter have to the laying of venue of any suit, action or proceeding
arising out of or relating to this Agreement or the other Support Document in
any New York State or Federal court. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such
court.

   (c) Each party to this Agreement irrevocably consents to service of process
in the manner provided for notices in Section 7.01. Nothing in this Agreement or
any other Support Document will affect the right of any party to this Agreement
to serve process in any other manner permitted by law.

   SECTION 7.14. Termination. This Agreement and the Security Interest shall
terminate when all the Obligations have been indefeasibly paid in full and all
Secured Instrument Commitments shall have terminated, at which time the
Collateral Agent shall execute and deliver to the Grantors, at the Grantors'
expense, all Uniform Commercial Code termination statements and similar
documents which the Grantors shall reasonably request to evidence such
termination. Any execution and delivery of termination statements or documents
pursuant to this Section 7.14 shall be without recourse to or warranty by the
Collateral Agent (except to the extent that any losses, claims, damages,
liabilities or related expenses are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or wilful misconduct of the Collateral Agent). Subject to Section
9.03 of the Collateral Agency and Intercreditor Agreement, a Grantor shall
automatically be released from its obligations hereunder and the Security
Interest in the Collateral of such Grantor shall be automatically released in
the event that all the capital stock of such Grantor
<PAGE>

33

shall be sold, transferred or otherwise disposed of to a Person that is not the
Parent, Holdings or a Grantor in a transaction that does not violate any Secured
Instrument.

   SECTION 7.15. Additional Grantors. Upon execution and delivery by the
Collateral Agent and a Subsidiary Loan Party of an instrument in the form of
Annex 1 hereto, such Subsidiary Loan Party shall become a Grantor hereunder with
the same force and effect as if originally named as a Grantor herein. The
execution and delivery of any such instrument shall not require the consent of
any Grantor hereunder. The rights and obligations of each Grantor hereunder
shall remain in full force and effect notwithstanding the addition of any new
Grantors as a party to this Agreement.

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

                                        CRICKET WIRELESS
                                        COMMUNICATIONS, INC.,
                                        By
                                          ______________________________________
                                        Name:
                                        Title:

                                        EACH SUBSIDIARY LISTED ON SCHEDULE I,

                                        By
                                          ______________________________________
                                        Name:
                                        Title:

                                        EACH LICENSE SUBSIDIARY LISTED ON
                                        SCHEDULE I,
<PAGE>

34

                                        By
                                          ______________________________________
                                        Name:
                                        Title:

                                        STATE STREET BANK AND TRUST COMPANY,
                                        as Collateral Agent,
                                        By
                                          ______________________________________
                                        Name:
                                        Title:
<PAGE>

35

                                                               Schedule I to the
                                                              Security Agreement

                                  GUARANTORS

             Guarantors                                  Address
             ----------                                  -------
<PAGE>

36

                                                              Schedule II to the
                                                              Security Agreement

                                  COPYRIGHTS

                                [See attached]
<PAGE>

37

                                                             Schedule III to the
                                                              Security Agreement
                                   LICENSES

                                [See attached]
<PAGE>

38

                                                              Schedule IV to the
                                                              Security Agreement

                                    PATENTS

                                [See attached]
<PAGE>

39

                                                               Schedule V to the
                                                              Security Agreement

                                  TRADEMARKS

                                [See Attached]
<PAGE>

40

                                                                  Annex 1 to the
                                                              Security Agreement

          SUPPLEMENT NO. __ dated as of , to the Security Agreement dated as of
       September 17, 1999, among CRICKET WIRELESS COMMUNICATIONS, INC., a
       Delaware corporation (the "Borrower"), each subsidiary of the Borrower
       listed on Schedule I thereto, each subsidiary of Leap Wireless
       International, Inc. (the "Parent") listed on Schedule I thereto (the
       "License Subsidiaries"; each such Subsidiary and each such License
       Subsidiary individually, a "Guarantor" and, collectively the
       "Guarantors"; the Guarantors and the Borrower are referred to
       collectively herein as the "Grantors") and STATE STREET BANK AND TRUST
       COMPANY, as collateral agent (in such capacity, the "Collateral Agent")
       for the Secured Parties.

   A. Reference is made to (a) the Collateral Agency and Intercreditor Agreement
(as defined in the Security Agreement) and (b) the Security Agreement.

   B. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Security Agreement.

   C. The Grantors have entered into the Security Agreement in order to induce
the Secured Parties to make loans under the applicable Secured Instrument.
Section 7.15 of Security Agreement provides that additional Subsidiary Loan
Parties may become Grantors under the Security Agreement by execution and
delivery of an instrument in the form of this Supplement. The undersigned
Subsidiary Loan Party (the "New Grantor") is executing this Supplement to become
a Grantor under the Security Agreement in order to induce the Secured Parties to
make additional loans under the applicable Secured Instruments and as
consideration for loans previously made under the Secured Instruments.

   Accordingly, the Collateral Agent and the New Grantor agree as follows:

   SECTION 1. In accordance with Section 7.15 of the Security Agreement, the New
Grantor by its signature below becomes a Grantor under the Security Agreement
with the same force and effect as if originally named therein as a Grantor
<PAGE>

41

and the New Grantor hereby (a) agrees to all the terms and provisions of the
Security Agreement applicable to it as a Grantor thereunder and (b) represents
and warrants that the representations and warranties made by it as a Grantor
thereunder are true and correct on and as of the date hereof. In furtherance of
the foregoing, the New Grantor, as security for the payment and performance in
full of the Obligations (as defined in the Collateral Agency and Intercreditor
Agreement), does hereby create and grant to the Collateral Agent, its successors
and assigns, for the benefit of the Secured Parties, their successors and
assigns, a security interest in and lien on all of the New Grantor's right,
title and interest in and to the Collateral (as defined in the Collateral Agency
and Intercreditor Agreement) of the New Grantor. Each reference to a "Grantor"
in the Security Agreement shall be deemed to include the New Grantor. The
Security Agreement is hereby incorporated herein by reference.

   SECTION 2. The New Grantor represents and warrants to the Collateral Agent
and the other Secured Parties that this Supplement has been duly authorized,
executed and delivered by it and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms.

   SECTION 3. This Supplement may be executed in counterparts (and by different
parties hereto on different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single
contract. This Supplement shall become effective when the Collateral Agent shall
have received counterparts of this Supplement that, when taken together, bear
the signatures of the New Grantor and the Collateral Agent. Delivery of an
executed signature page to this Supplement by facsimile transmission shall be as
effective as delivery of a manually signed counterpart of this Supplement.

   SECTION 4. The New Grantor hereby represents and warrants that (a) set forth
on Schedule I attached hereto is a true and correct schedule of the location of
any and all Collateral of the New Grantor as of the date hereof and (b) set
forth under its signature hereto, is the true and correct location of the chief
executive office of the New Grantor.
<PAGE>

42

   SECTION 5. Except as expressly supplemented hereby, the Security Agreement
shall remain in full force and effect.

   SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

   SECTION 7. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein and in the Security Agreement shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the
validity of such provision in any other jurisdiction). The parties hereto shall
endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

   SECTION 8. All communications and notices hereunder shall be in writing and
given as provided in Section 7.01 of the Security Agreement. All communications
and notices hereunder to the New Grantor shall be given to it at the address set
forth under its signature below.

   SECTION 9. The New Grantor agrees to reimburse the Collateral Agent for its
reasonable out-of-pocket expenses in connection with this Supplement, including
the reasonable fees, other charges and disbursements of counsel for the
Collateral Agent.
<PAGE>

43

   IN WITNESS WHEREOF, the New Grantor and the Collateral Agent have duly
executed this Supplement to the Security Agreement as of the day and year first
above written.

                                        [NAME OF NEW GRANTOR],
                                        By
                                          ______________________________________
                                        Name:
                                        Title:

                                        STATE STREET BANK AND TRUST COMPANY,
                                        as Collateral Agent,
                                        By
                                          ______________________________________
                                        Name:
                                        Title:

<PAGE>

44

                                                                      Schedule I
                                                           to Supplement No. [ ]
                                                       to the Security Agreement

                            LOCATION OF COLLATERAL

Description                                               Location
-----------                                               --------
<PAGE>

1

                                                                       EXHIBIT I

          SUBORDINATION AGREEMENT dated as of September 17, 1999,
       among CRICKET COMMUNICATIONS, INC., a Delaware corporation
       ("Holdings"), CRICKET WIRELESS COMMUNICATIONS, INC., a Delaware
       corporation (the "Borrower"), LEAP WIRELESS INTERNATIONAL, INC.,
       a Delaware corporation (the "Parent"), each subsidiary of the
       Borrower listed on Schedule I hereto (each a "Subsidiary", and,
       collectively, the "Subsidiaries"), each subsidiary of the Parent
       listed on Schedule I hereto (each a "License Subsidiary", and,
       collectively, the "License Subsidiaries"; each Subsidiary, each
       License Subsidiary, Holdings, and the Parent individually, a
       "Subordinated Creditor" and collectively, the "Subordinated
       Creditors"), and STATE STREET BANK AND TRUST COMPANY, as
       collateral agent (in such capacity, the "Collateral Agent") for
       the Secured Parties.

       Reference is made to the Collateral Agency and Intercreditor Agreement
dated as of September 17, 1999 (as amended, supplemented or otherwise modified
from time to time, the "Collateral Agency and Intercreditor Agreement") among
the Borrower, the Representatives and Unrepresented Holders referred to therein
and the Collateral Agent. Capitalized terms used herein and not defined herein
shall have the meanings assigned to such terms in the Collateral Agency and
Intercreditor Agreement. Each Subordinated Creditor acknowledges receipt of a
true and correct copy of the Collateral Agency and Intercreditor Agreement and
agrees to the terms thereof.

       The Lenders have agreed to make Loans to the Borrower pursuant to, and
upon the terms and subject to the conditions specified in, the Credit Agreement.
The obligation of the Lenders to make Loans is conditioned on, among other
things, the execution and delivery by the Subordinated Creditors, the Borrower
and the Collateral Agent of a subordination agreement in the form hereof. In
order to induce the Secured Parties to extend credit under the applicable
Secured Instrument, each of the Subordinated Creditors and the Borrower are
willing to execute and deliver this Agreement. The Borrower may from time to
time incur Permitted Additional Obligations that are required to become Senior
Obligations hereunder. Accordingly, the Subordinated Creditors, the Borrower and
the Collateral Agent hereby agree as follows:
<PAGE>

2

                                   ARTICLE I

                                  DEFINITIONS

       Terms used herein but not defined herein shall have the meanings set
forth in the Collateral Agency and Intercreditor Agreement. Section 1.02 of the
Collateral Agency and Intercreditor Agreement also shall apply to terms used in
this Agreement. In addition to the terms defined elsewhere in this Agreement or
in the Collateral Agency and Intercreditor Agreement, as used herein the
following terms shall have the following meanings:

       "Borrower Companies" means the Borrower, the License Subsidiaries and the
Subsidiaries.

       "Primary Subordinated Obligations" means, with respect to any Borrower
Company, the following:

       (a) all monetary obligations of such Borrower Company, whether
   in respect of principal, premium interest or otherwise, in respect of
   any Indebtedness owed by such Borrower Company to any Subordinated
   Creditor (including any such obligations owing to any other Person for
   the direct or indirect benefit of any Subordinated Creditor); and

       (b) any fees or similar charges payable to or directly or
   indirectly for the benefit of any Subordinated Creditor;

provided that the Primary Subordinated Obligations of a Borrower Company shall
not include any of the foregoing obligations owed to a Subordinated Creditor
that is a Subsidiary Loan Party.

       "Secondary Subordinated Obligations" means, with respect to any Borrower
Company, all monetary obligations and other liabilities of such Borrower Company
at any time owing to any Subordinated Creditor (including any such obligations
or other liabilities owing to any other Person for the direct or indirect
benefit of any Subordinated Creditor); provided that Secondary Subordinated
Obligations of a Borrower Company shall not include its Primary Subordinated
Obligations.
<PAGE>

3

       "Senior Creditors" means the Secured Parties and their respective
successors and assigns.

       "Senior Creditor Documents" means the Loan Documents.

       "Senior Obligations" means (a) with respect to the Borrower, the
Obligations, and (b) with respect to any other Borrower Company, all monetary
obligations of such Borrower Company under the Support Documents to which it is
a party, including pursuant to the Guarantee Agreement.

       "Subordinated Creditors" means each of the Parent, Holdings, the
Subsidiary Loan Parties and such other Persons as shall become parties hereto as
contemplated by Section 5.9 hereof.

       "Subordinated Obligations" means the Primary Subordinated Obligations and
the Secondary Subordinated Obligations.

                                  ARTICLE II

                                 SUBORDINATION

       SECTION 2.1. Subordination. Each Subordinated Creditor hereby agrees that
all the Subordinated Obligations of each Borrower Company are hereby expressly
subordinated, to the extent and in the manner set forth in this Article II, to
the prior payment in full in cash of all Senior Obligations of such Borrower
Company in accordance with the terms thereof.

       SECTION 2.2. Dissolution or Insolvency. Upon any distribution of the
assets of any Borrower Company or upon any dissolution, winding up, liquidation
or reorganization of any Borrower Company, whether in bankruptcy, insolvency,
reorganization, arrangement or receivership proceedings or otherwise, or upon
any assignment for the benefit of creditors or any other marshaling of the
assets and liabilities of any Borrower Company, or otherwise:

       (a) the Senior Creditors of such Borrower Company shall first be entitled
to receive payment in full in cash
<PAGE>

4

of the Senior Obligations of such Borrower Company in accordance with the terms
of such Senior Obligations and the Support Documents before any Subordinated
Creditor shall be entitled to receive any payment on account of the Subordinated
Obligations of such Borrower Company, whether as principal, interest or
otherwise; and

       (b) any payment by, or distribution of the assets of, such Borrower
Company of any kind or character, whether in cash, property or securities, to
which any Subordinated Creditor would be entitled except for the provisions of
this Agreement shall be paid or delivered by the Person making such payment or
distribution (whether a trustee in bankruptcy, a receiver, custodian or
liquidating trustee or otherwise) directly to the Collateral Agent to the extent
necessary to make payment in full in cash of all Senior Obligations of such
Borrower Company remaining unpaid, after giving effect to any concurrent payment
or distribution to the Senior Creditors in respect of the Senior Obligations, to
be held and applied by the Collateral Agent as provided in the Collateral Agency
and Intercreditor Agreement.

       SECTION 2.3. Payment of Primary Subordinated Obligations Prohibited. (a)
No payment (whether directly, by exercise of any right of set-off or otherwise)
in respect of any Primary Subordinated Obligation of any Borrower Company,
whether as principal, interest or otherwise, shall be permitted at any time
until all Senior Obligations have been paid in full.

       (b) No payment of any Primary Subordinated Obligation that is prohibited
by paragraph (a) above shall be received or accepted by or on behalf of any
Subordinated Creditor.

       (c) The provisions of this Section 2.3 shall not apply to the payment of
any Primary Subordinated Obligation to the extent payment thereof is permitted
at the time by each Secured Instrument and the Collateral Agency and
Intercreditor Agreement.

       SECTION 2.4. Payment of Secondary Subordinated Obligations Prohibited
Upon Default. No payment (whether directly, by exercise of any right of set-off
or otherwise) in respect of the Secondary Subordinated Obligations of any
<PAGE>

5

Borrower Company, whether as principal, interest or otherwise, shall be
permitted, and no such payment shall be received or accepted by or on behalf of
any Subordinated Creditor, if immediately prior to or after giving effect to
such payment either (a) a Notice of Enforcement is in effect or (b) an event
that with notice, lapse of time or both would entitle the Required Secured
Parties to deliver a Notice of Enforcement.

       SECTION 2.5. Certain Payments Held in Trust. In the event that any
payment by, or distribution of the assets of, any Borrower Company of any kind
or character, whether in cash, property or securities, and whether directly, by
exercise of any right of set-off or otherwise, shall be received by or on behalf
of any Subordinated Creditor at a time when such payment is prohibited by this
Agreement, such payment or distribution shall be held in trust for the benefit
of, and shall be paid over to, (a) the Collateral Agent to the extent necessary
to make payment in full in cash of all Senior Obligations of such Borrower
Company remaining unpaid, after giving effect to any concurrent payment or
distribution to the Senior Creditors in respect of such Senior Obligations, to
be held and applied by the Collateral Agent as provided in the Collateral Agency
and Intercreditor Agreement or (b) in the case of any payment prohibited under
Section 2.3 or 2.4 hereof, the Borrower Company from which such payment was
received or, if directed by the Collateral Agent, to the Collateral Agent to be
held and applied by the Collateral Agent as provided in the Collateral Agency
and Intercreditor Agreement.

       SECTION 2.6. Subrogation. Subject to the prior indefeasible payment in
full in cash of the Senior Obligations of a Borrower Company, the applicable
Subordinated Creditors of such Borrower Company shall be subrogated to the
rights of the Senior Creditors of such Borrower Company to receive payments or
distributions in cash, property or securities of such Borrower Company
applicable to such Senior Obligations until all amounts owing on the
Subordinated Obligations of such Borrower Company shall be paid in full, and as
between and among a Borrower Company, its creditors (other than its Senior
<PAGE>

6

Creditors) and the applicable Subordinated Creditors of such Borrower Company,
no such payment or distribution made to the Collateral Agent by virtue of this
Agreement that otherwise would have been made to the Subordinated Creditors of
such Borrower Company shall be deemed to be a payment by such Borrower Company
on account of its Subordinated Obligations, it being understood that the
provisions of this Agreement are intended solely for the purpose of defining the
relative rights of the Subordinated Creditors, on the one hand, and the Senior
Creditors, on the other hand.

                                  ARTICLE III

             OTHER MATTERS REGARDING THE SUBORDINATED OBLIGATIONS

       SECTION 3.1. Other Creditors. Nothing contained in this Agreement is
intended to or shall impair, as between and among the Borrower Companies, their
creditors (other than their Senior Creditors) and the Subordinated Creditors,
the obligations of each Borrower Company to pay to the applicable Subordinated
Creditors of such Borrower Company the Subordinated Obligations of such Borrower
Company as and when the same shall become due and payable in accordance with the
terms thereof, or affect the relative rights of the Subordinated Creditors and
the other creditors of the Borrower Company (other than their Senior Creditors).

       SECTION 3.2. Proofs of Claims. In the event of any dissolution, winding
up, liquidation or reorganization of any Borrower Company, whether in
bankruptcy, insolvency, reorganization, arrangement or receivership proceedings
or otherwise, or any assignment for the benefit of creditors or any other
marshaling of the assets and liabilities of any Borrower Company, each
Subordinated Creditor agrees to file proofs of claim for the Subordinated
Obligations owed to it upon demand of the Collateral Agent, in default of which
the Collateral Agent or other authorized representative of the Senior Creditors
is hereby irrevocably authorized so to file in order to effectuate the
provisions hereof. This Section shall not be construed to permit any
Subordinated Creditor to retain any payment received by it in respect of a
Subordinated Obligation that such Subordinated Creditor is not entitled to
receive and retain under any other provision of this Agreement.
<PAGE>

7

       SECTION 3.3. No Waiver. No right of any Senior Creditor to enforce this
Agreement shall at any time or in any way be prejudiced or impaired by any act
or failure to act on the part of any of the Collateral Agent, the other Senior
Creditors, or any Borrower Company, or by any noncompliance by any Borrower
Company with the terms, provisions and covenants contained herein, and the
Senior Creditors are hereby expressly authorized to extend, renew, increase,
decrease, modify or amend the terms of the Senior Obligations or any security
therefor, and to release, sell or exchange any such security and otherwise deal
freely with the Borrower Companies, all without notice to or consent of any
Subordinated Creditor and without affecting the liabilities and obligations of
the parties hereto.

       SECTION 3.4. Acceleration and Remedies; Bankruptcy Filings. Each
Subordinated Creditor agrees that, except for claims submitted in any proceeding
contemplated by Section 3.2 hereof, it will not exercise any remedies or take
any action or proceeding to enforce any Subordinated Obligation if the payment
of such Subordinated Obligation is then prohibited by Section 2.3 or 2.4, and
each Subordinated Creditor further agrees not to file, or to join with any other
creditors of any Borrower Company in filing, any petition commencing any
bankruptcy, insolvency, reorganization, arrangement or receivership proceeding
or any assignment for the benefit of creditors against or in respect of any
Borrower Company or any other marshaling of the assets and liabilities of any
Borrower Company. Each Subordinated Creditor further agrees, to the fullest
extent permitted under applicable law, that it will not cause any Borrower
Company to file any such petition, commence any such proceeding or make any such
assignment referred to above until all Senior Obligations have been paid in
full.

       SECTION 3.5. Transfer of Subordinated Obligations. Each Subordinated
Creditor agrees that it will not sell, assign, transfer or otherwise dispose of
all or any part of the Subordinated Obligations owed to it unless the Person to
whom such sale, assignment, transfer or disposition is made (i) is a
Subordinated Creditor hereunder
<PAGE>

8

or (ii) shall acknowledge in writing (delivered to the Collateral Agent) that it
shall be bound by the terms of this Agreement, including the terms of this
Section 3.5, as though named herein as a Subordinated Creditor.

       SECTION 3.6. Obligations Hereunder Not Affected. (a) All rights and
interests of the Senior Creditors hereunder, and all agreements and obligations
of the Subordinated Creditors hereunder, shall remain in full force and effect
irrespective of:

       (i) any lack of validity or enforceability of any Support
   Document or Secured Instrument;

       (ii) any change in the time, manner or place of payment of, or
   in any other term of, all or any of the Senior Obligations, or any other
   amendment or waiver of or consent to departure from the Credit Agreement
   or any other Senior Creditor Document (other than this Agreement);

       (iii) any exchange, release or nonperfection of any security
   interest in any collateral, or any release or amendment or waiver of or
   consent to departure from any guarantee, in respect of all or any of the
   Senior Obligations; or

       (iv) any other circumstance that might otherwise constitute a
   defense available to, or a discharge of, any Borrower Company in respect
   of its Senior Obligations or of any Subordinated Creditor in respect of
   this Agreement.

       (b) This Agreement shall continue to be effective or be reinstated, as
the case may be, if at any time any payment of the Senior Obligations or any
part thereof is rescinded or must otherwise be returned by any Senior Creditor
upon the insolvency, bankruptcy or reorganization of any Borrower Company or
otherwise, all as though such payment had not been made.

       (c) Each Subordinated Creditor hereby authorizes the Senior Creditors,
without notice or demand and without affecting or impairing any of the
obligations of such Subordinated Creditor hereunder, from time to time to
<PAGE>

9

(i) renew, compromise, extend, increase, accelerate or otherwise change the time
for payment of, or otherwise change the terms of, the Senior Obligations or any
part thereof and (ii) exercise or refrain from exercising any rights against any
Subordinated Creditor, any Borrower Company or any other Person.

                                  ARTICLE IV

           REPRESENTATIONS AND WARRANTIES OF SUBORDINATED CREDITORS

       Each Subordinated Creditor severally represents and warrants to the
Collateral Agent, for the benefit of the Senior Creditors, that:

       (a) It is duly organized, validly existing and in good standing under the
laws of the jurisdiction in which it is organized.

       (b) The execution, delivery and performance by it of this Agreement and
the consummation of the transactions contemplated hereby are within its powers,
have been duly authorized by all necessary action on its part, require no action
by or in respect of, or filing with, any Governmental Authority (other than such
as have been duly taken or made) and do not contravene, or constitute a default
under, any provision of applicable law or regulation or of its certificate of
incorporation or by-laws (or other organizational documents, as applicable) or
of any material agreement, judgment, injunction, order, decree or other
instrument binding upon it or any of its subsidiaries.

       (c) This Agreement constitutes a valid and binding agreement of such
Subordinated Creditor, enforceable against such Subordinated Creditor in
accordance with its terms, subject to the effect of applicable bankruptcy,
insolvency or similar laws affecting creditors' rights generally and equitable
principles of general applicability.
<PAGE>

10

                                   ARTICLE V

                                 MISCELLANEOUS

       SECTION 5.1. Notices. All communications and notices hereunder shall be
in writing and shall be given as provided in Section 11.01 of the Collateral
Agency and Intercreditor Agreement; provided that any communication or notice
hereunder to any Subordinated Creditor shall be given to it at the address or
telecopy number set forth under its signature on the signature page hereof or of
the supplement hereto pursuant to which it becomes a party hereto.

       SECTION 5.2. Successors and Assigns. Whenever in this Agreement any of
the parties hereto is referred to, such reference shall be deemed to include the
successors and assigns of such party. All representations, warranties,
covenants, promises and agreements by or on behalf of any Subordinated Creditor
that are contained in this Agreement shall bind its successors and assigns and
inure to the benefit of the Senior Creditors and the successors and assigns of
the Senior Creditors. Each Subordinated Creditor agrees that it shall not assign
or delegate any of its obligations under this Agreement without the prior
written consent of the Collateral Agent, and any attempted assignment or
delegation without such consent shall be void and of no effect.

       SECTION 5.3. Governing Law; Jurisdiction; Consent to Service of Process.
(a) This Agreement shall be construed in accordance with and governed by the law
of the State of New York.

       (b) Each Subordinated Creditor hereby irrevocably and unconditionally
submits, for itself and its property, to the nonexclusive jurisdiction of the
Supreme Court of the State of New York sitting in New York County and of the
United States District Court of the Southern District of New York, and any
appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement or any other Senior Creditor Document, or for
recognition or enforcement of any judgment, and each of the parties hereto
hereby irrevocably and unconditionally agrees that all claims in respect of any
such action or proceeding may be heard and determined in such New York State or,
to
<PAGE>

11

the extent permitted by law, in such Federal court. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Nothing in this Agreement shall affect any
right that the Collateral Agent or any other Senior Creditor may otherwise have
to bring any action or proceeding relating to any Support Document against any
Subordinated Creditor or its properties in the courts of any jurisdiction.

       (c) Each Subordinated Creditor hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any
objection which it may now or hereafter have to the laying of venue of any suit,
action or proceeding arising out of or relating to any Support Document in any
court referred to in paragraph (b) of this Section. Each of the parties hereto
hereby irrevocably waives, to the fullest extent permitted by law, the defense
of an inconvenient forum to the maintenance of such action or proceeding in any
such court.

       (d) Each Subordinated Creditor hereby irrevocably consents to service of
process in the manner provided for notices in Section 5.1. Nothing in this
Agreement will affect the right of any party to this Agreement to serve process
in any other manner permitted by law.

       SECTION 5.4. Waivers; Amendment. No failure or delay of any Senior
Creditor in exercising any right or power hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power by
any Senior Creditor preclude any other or further exercise thereof or the
exercise of any other right or power. The rights and remedies of the Senior
Creditors hereunder and under the other documents and instruments creating or
securing their respective Senior Obligations are cumulative and are not
exclusive of any other rights or remedies provided by law. Neither this
Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Collateral
Agent and each Subordinated Creditor and Borrower
<PAGE>

12

Company intended to be bound thereby, subject to the consents required in
accordance with Section 11.02 of the Collateral Agency and Intercreditor
Agreement.

       SECTION 5.5. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO ANY SUPPORT DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A)
CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

       SECTION 5.6. Severability. In the event any one or more of the provisions
contained in this Agreement should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining
provisions contained herein shall not in any way be affected or impaired
thereby. The parties shall endeavor in good faith negotiations to replace any
invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

       SECTION 5.7. Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall constitute an original but all of which, when
taken together, shall constitute but one instrument; provided that this
Agreement shall be construed as a separate agreement with respect to each
Subordinated Creditor and may be amended, modified, supplemented, waived or
released with respect to any Subordinated Creditor without the approval of any
other Subordinated Creditor and without affecting the obligations of any other
Subordinated Creditor hereunder. This Agreement shall be effective with respect
to any Subordinated Creditor when a counterpart hereof (or of an
<PAGE>

13

instrument executed as provided in Section 5.9 below) which bears the signature
of such Subordinated Creditor shall have been delivered to the Collateral Agent.

       SECTION 5.8. Headings. Article and Section headings used herein are for
convenience of reference only, are not part of this Agreement and are not to
affect the construction of, or to be taken into consideration in interpreting,
this Agreement.

       SECTION 5.9. Additional Subordinated Creditors. Upon execution and
delivery by the Agent and an Affiliate of Holdings or the Borrower or a
Subsidiary Loan Party of an instrument in the form of Annex 1 attached thereto,
such Affiliate or Subsidiary Loan Party shall become a Subordinated Creditor
hereunder with the same force and effect as if originally named as a
Subordinated Creditor herein. The execution and delivery of any such instrument
shall not require the consent of any other Subordinated Creditor hereunder. The
rights and obligations of each Subordinated Creditor herein shall remain in full
force and effect notwithstanding the addition of any Subordinated Creditor as a
party to this Agreement.

       SECTION 5.10. Termination. Subject to Section 3.6(b), this Agreement
shall terminate upon the termination of all Secured Instrument Commitments and
the payment in full of the Obligations.

       IN WITNESS WHEREOF, the Parent, Holdings, each Subsidiary, each License
Subsidiary, the Borrower and the Collateral Agent have caused this Agreement to
be duly executed by their respective authorized representatives as of the day
and year first above written.

                                        CRICKET WIRELESS
                                        COMMUNICATIONS, INC.,
                                        By
                                          --------------------------------------
                                          Name:
                                          Title:
<PAGE>

14

                                        CRICKET COMMUNICATIONS, INC.,
                                        By
                                          --------------------------------------
                                          Name:
                                          Title:

                                        EACH SUBSIDIARY LISTED ON SCHEDULE I
                                        HERETO,

                                        By
                                          --------------------------------------
                                          Name:
                                          Title:
                                          Address: See Schedule I

                                        LEAP WIRELESS INTERNATIONAL, INC.,

                                        By
                                          --------------------------------------
                                          Name:
                                          Title:
                                          Address:

                                        EACH LICENSE SUBSIDIARY LISTED
                                        ON SCHEDULE I HERETO,
                                        By
                                          --------------------------------------
                                          Name:
                                          Title:
                                          Address: See Schedule I

                                        STATE STREET BANK AND TRUEST
                                        COMPANY, as Collateral Agent,
                                        By
                                          --------------------------------------
                                          Name:
                                          Title:
<PAGE>

15

                                                               SCHEDULE I TO THE
                                                         SUBORDINATION AGREEMENT

                            Subordinated Creditors
<PAGE>

16

                                                                  Annex 1 to the
                                                         Subordination Agreement

          SUPPLEMENT NO. [ ] dated as of , to the Subordination
       Agreement dated as of September 17, 1999, among CRICKET
       COMMUNICATIONS, INC., a Delaware corporation ("Holdings"),
       CRICKET WIRELESS COMMUNICATIONS, INC., a Delaware corporation
       (the "Borrower"), LEAP WIRELESS INTERNATIONAL, INC., a Delaware
       corporation (the "Parent"), each subsidiary of the Borrower
       listed on Schedule I hereto (each a "Subsidiary", and,
       collectively, the "Subsidiaries"), each subsidiary of the
       Parent listed on Schedule I hereto (each a "License
       Subsidiary", and, collectively, the "License Subsidiaries";
       each Subsidiary, each License Subsidiary, Holdings, and the
       Parent individually, a "Subordinated Creditor" and
       collectively, the "Subordinated Creditors"), and STATE STREET
       BANK AND TRUST COMPANY, as collateral agent (in such capacity,
       the "Collateral Agent") for the Secured Parties.

   A. Reference is made to the (a) Collateral Agency and Intercreditor Agreement
(as defined in the Subordination Agreement) and (b) the Subordination
Agreement).

   B. Capitalized terms used herein and not otherwise defined herein shall have
the meanings assigned to such terms in the Subordination Agreement.

   C. The Subordinated Creditors and the Borrower have entered into the
Subordination Agreement in order to induce the Secured Parties to make loans
under the applicable Secured Instrument. Section 5.9 of the Subordination
Agreement provides that Affiliates of Holdings or the Borrower and additional
Subsidiary Loan Parties may become Subordinated Creditors under the
Subordination Agreement by execution and delivery of an instrument in the form
of this Supplement. The undersigned Affiliate of Holdings or the Borrower or
Subsidiary Loan Party, as the case may be, (the "New Subordinated Creditor") is
executing this Supplement to become a Subordinated Creditor under the
Subordination Agreement in order to induce the Secured Parties to make
additional loans under the applicable Secured Instruments
<PAGE>

17

and as consideration for loans previously made under the Secured Instruments.

   Accordingly, the Collateral Agent and the New Subordinated Creditor agree as
follows:

   SECTION 1. In accordance with Section 5.9 of the Subordination Agreement, the
New Subordinated Creditor by its signature below becomes a Subordinated Creditor
under the Subordination Agreement with the same force and effect as if
originally named therein as a Subordinated Creditor and the New Subordinated
Creditor hereby (a) agrees to all the terms and provisions of the Subordination
Agreement applicable to it as a Subordinated Creditor thereunder and (b)
represents and warrants that the representations and warranties made by it as a
Subordinated Creditor thereunder are true and correct on and as of the date
hereof except for representations and warranties which by their terms refer to a
specific date. Each reference to a "Subordinated Creditor" in the Subordination
Agreement shall be deemed to include the New Subordinated Creditor. The
Subordination Agreement is hereby incorporated herein by reference.

   SECTION 2. The New Subordinated Creditor represents and warrants to the
Collateral Agent and the other Secured Parties that this Supplement has been
duly authorized, executed and delivered by it and constitutes its legal, valid
and binding obligation, enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency, moratorium or other laws affecting
creditors' rights generally and subject to general principles of equity
regardless of whether considered in a proceeding in equity or at law.

   SECTION 3. This Supplement may be executed in counterparts, each of which
shall constitute an original, but all of which when taken together shall
constitute a single contract. This Supplement shall become effective when the
Collateral Agent shall have received counterparts of this Supplement that, when
taken together, bear the signatures of the New Subordinated Creditor and the
Collateral Agent. Delivery of an executed signature page to
<PAGE>

18

this Supplement by facsimile transmission shall be as effective as delivery of a
manually executed counterpart of this Supplement.

   SECTION 4. Except as expressly supplemented hereby, the Subordination
Agreement shall remain in full force and effect.

   SECTION 5. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK.

   SECTION 6. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect, the
validity, legality and enforceability of the remaining provisions contained
herein and in the Subordination Agreement shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular
provision hereof in a particular jurisdiction shall not in and of itself affect
the validity of such provision in any other jurisdiction). The parties hereto
shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable
provisions.

   SECTION 7. All communications and notices hereunder shall be in writing and
given as provided in Section 5.1 of the Subordination Agreement. All
communications and notices hereunder to the New Subordinated Creditor shall be
given to it at the address set forth under its signature below, with a copy to
the Borrower.

   SECTION 8. The New Subordinated Creditor agrees to reimburse the Collateral
Agent for its reasonable out-of-pocket expenses in connection with this
Supplement, including the reasonable fees, disbursements and other charges of
counsel for the Collateral Agent.

   IN WITNESS WHEREOF, the New Subordinated Creditor and
<PAGE>

19

the Collateral Agent have duly executed this Supplement to the Subordination
Agreement as of the day and year first above written.

                                        [NAME OF NEW SUBORDINATED CREDITOR],

                                        By
                                          --------------------------------------
                                          Name:
                                          Title:
                                          Address:

                                        STATE STREET BANK AND TRUST COMPANY,
                                        as Collateral Agent,
                                        By
                                          --------------------------------------
                                          Name:
                                          Title:

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