Document:

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                          REGISTRATION RIGHTS AGREEMENT

                  THIS REGISTRATION RIGHTS AGREEMENT (the "AGREEMENT") is made
and entered into as of August 16, 2000 among Qwest Communications International
Inc., a Delaware corporation (the "Guarantor"), Qwest Capital Funding, Inc., a
Colorado corporation (the "COMPANY"), and the Initial Purchasers (as hereinafter
defined).

                  This Agreement is made pursuant to the Purchase Agreement
dated August 16, 2000 (the "PURCHASE AGREEMENT"), among the Guarantor, the
Company, as issuer of the 7.75% Notes due August 15, 2006 and the 7.90% Notes
due August 15, 2010 (the "Notes"), and the Initial Purchasers, which provides
for, among other things, the sale by the Company to the Initial Purchasers of
the aggregate principal amount of Notes specified therein. The Notes will be
unconditionally guaranteed as to payment of principal, premium, if any, and
interest by the Guarantor (the "Guarantees", and together with the Notes, the
"Securities"). In order to induce the Initial Purchasers to enter into the
Purchase Agreement, the Guarantor and the Company have agreed to provide to the
Initial Purchasers and their direct and indirect transferees the registration
rights set forth in this Agreement. The execution and delivery of this Agreement
is a condition to the closing under the Purchase Agreement.

                  In consideration of the foregoing, the parties hereto agree as
follows:

                  1.       DEFINITIONS. As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

         "ADVICE" shall have the meaning set forth in the last paragraph of
Section 3 hereof.

         "AFFILIATE" has the same meaning as given to that term in Rule 405
under the Securities Act or any successor rule thereunder.

         "APPLICABLE PERIOD" shall have the meaning set forth in Section 3(s)
hereof.

         "BUSINESS DAY" means any day other than a Saturday, a Sunday, or a day
on which banking institutions in The City of New York are authorized or required
by law or executive order to remain closed.

         "CLOSING TIME" shall mean the Closing Time as defined in the Purchase
Agreement.

         "COMPANY" shall have the meaning set forth in the preamble to this
Agreement and also includes the Company's successors and permitted assigns.

         "DEPOSITARY" shall mean The Depository Trust Company, or any other
depositary appointed by the Company; PROVIDED, HOWEVER, that such depositary
must have an address in the Borough of Manhattan, The City of New York.

         "EFFECTIVENESS PERIOD" shall have the meaning set forth in Section 2(b)
hereof.

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         "EXCHANGE ACT" shall mean the Securities Exchange Act of 1934, as
amended from time to time.

         "EXCHANGE GUARANTEES" shall mean the Guarantor's unconditional
guarantee of principal, premium, if any, and interest of the Exchange Notes
containing terms identical in all material respects to the Guarantees.

         "EXCHANGE NOTES" shall mean the 7.75% Notes due August 15, 2006 and the
7.90% Notes due August 15, 2010 issued by the Company under the Indenture
containing terms identical in all material respects to the Notes (except that
(i) interest thereon shall accrue from the last date on which interest was paid
or duly provided for on the Notes or, if no such interest has been paid, from
the date of their original issue, (ii) they will not contain terms with respect
to transfer restrictions under the Securities Act, (iii) they will not provide
for any Special Interest Premium thereon and (iv) they will be entitled to the
benefit of the Exchange Guarantees) to be offered to Holders of Notes in
exchange for Notes pursuant to the Exchange Offer.

         "EXCHANGE OFFER" shall mean the offer by the Company to the Holders to
exchange all of the Registrable Securities for a like amount of Exchange Notes
pursuant to Section 2(a) hereof.

         "EXCHANGE OFFER REGISTRATION" shall mean a registration under the
Securities Act effected pursuant to Section 2(a) hereof.

         "EXCHANGE OFFER REGISTRATION STATEMENT" shall mean an exchange offer
registration statement on Form S-4 (or, if applicable, on another appropriate
form), and all amendments and supplements to such registration statement, in
each case including the Prospectus contained therein, all exhibits thereto and
all documents incorporated by reference therein.

         "EXCHANGE PERIOD" shall have the meaning set forth in Section 2(a)
hereof.

         "GUARANTEES" shall have the meaning set forth in the preamble to this
Agreement.

          "HOLDER" shall mean any Initial Purchaser, for so long as it owns any
Registrable Securities, and each of its successors, assigns and direct and
indirect transferees who become registered owners of Registrable Securities
under the Indenture.

         "INDENTURE" shall mean the Indenture, dated as of June 29, 1998,
between the Company, as issuer, the Guarantor (as successor to US WEST, Inc.)
and Bank One Trust Company, National Association, as trustee, as the same may be
amended or supplemented from time to time in accordance with the terms thereof.

         "INITIAL PURCHASERS" shall mean Salomon Smith Barney Inc., Lehman
Brothers Inc., J.P. Morgan Securities Inc., Banc of America Securities LLC,
Chase Securities Inc., Donaldson, Lufkin & Jenrette Securities Corporation,
Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, ABN
AMRO Incorporated, Banc One Capital Markets, Inc., Commerzbank Capital Markets
Corp., Deutsche Bank Securities Inc., First Union Securities, Inc., FleetBoston
Robertson Stephens Inc., McDonald Investments, Inc., Mellon Financial Markets,
LLC, RBC Dominion Securities Corporation, U.S. Bancorp Piper Jaffray Inc.,
Utendahl

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Capital Partners, L.P., Wells Fargo Brokerage Services, LLC, and The Williams
Capital Group, L.P.

         "INSPECTORS" shall have the meaning set forth in Section 3(n) hereof.

         "ISSUE DATE" shall mean August 21, 2000, the initial date of delivery
of the Notes from the Company to the Initial Purchasers.

         "ISSUER" shall mean the Company as defined in the preamble hereto.

         "MAJORITY HOLDERS" shall mean the Holders of a majority of the
aggregate principal amount of outstanding Notes and Exchange Notes.

         "NOTES" shall have the meaning set forth in the preamble to this
Agreement.

         "PARTICIPATING BROKER-DEALER" shall have the meaning set forth in
Section 3(t) hereof.

         "PERSON" shall mean an individual, partnership, corporation, trust or
unincorporated organization, limited liability corporation, or a government or
agency or political subdivision thereof.

         "PROSPECTUS" shall mean the prospectus included in a Registration
Statement, including any preliminary prospectus, and any such prospectus as
amended or supplemented by any prospectus supplement, including a prospectus
supplement with respect to the terms of the offering of any portion of the
Registrable Securities covered by a Shelf Registration Statement, and by all
other amendments and supplements to a prospectus, including post-effective
amendments, and in each case including all documents incorporated by reference
therein.

         "PURCHASE AGREEMENT" shall have the meaning set forth in the preamble
to this Agreement.

         "RECORDS" shall have the meaning set forth in Section 3(n) hereof.

         "REGISTRABLE SECURITIES" shall mean the Securities; PROVIDED, HOWEVER,
that any Securities shall cease to be Registrable Securities when any of the
following occurs: (i) a Registration Statement with respect to such Securities
for the exchange or resale thereof shall have been declared effective under the
Securities Act and such Securities shall have been disposed of pursuant to such
Registration Statement, (ii) such Securities shall have been sold to the public
pursuant to Rule 144(k) (or any similar provision then in force, but not Rule
144A) under the Securities Act or are eligible to be sold without restriction as
contemplated by Rule 144(k), (iii) such Securities shall have ceased to be
outstanding or (iv) such Securities shall have been exchanged for Exchange Notes
together with the Exchange Guarantees upon consummation of the Exchange Offer
and are thereafter freely tradable by the Holder thereof (other than an
Affiliate of the Company or the Guarantor).

          "REGISTRATION EXPENSES" shall mean any and all expenses incident to
performance of or compliance by the Company and the Guarantor with this
Agreement, including without limitation: (i) all SEC or National Association of
Securities Dealers, Inc. (the "NASD")

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registration and filing fees, including, if applicable, the fees and expenses
of any "qualified independent underwriter" (and its counsel) that is required
to be retained by any Holder of Registrable Securities in accordance with the
rules and regulations of the NASD, (ii) all fees and expenses incurred in
connection with compliance with state securities or blue sky laws (including
reasonable fees and disbursements of one counsel for all underwriters and
Holders as a group in connection with blue sky qualification of any of the
Exchange Securities or Registrable Securities) and compliance with the rules
of the NASD, (iii) all expenses of any Persons in preparing or assisting in
preparing, word processing, printing and distributing any Registration
Statement, any Prospectus and any amendments or supplements thereto, and in
preparing or assisting in preparing, printing and distributing any
underwriting agreements, securities sales agreements and other documents
relating to the performance of and compliance with this Agreement, (iv) all
rating agency fees, (v) the fees and disbursements of counsel for the Company
and the Guarantor and of the independent certified public accountants of the
Company and the Guarantor and its subsidiaries, including the expenses of any
"cold comfort" letters required by or incident to the performance of and
compliance with this Agreement, (vi) the reasonable fees and expenses of the
Trustee and its counsel and any exchange agent or custodian, and (vii) the
reasonable fees and expenses of any special experts retained by the Company
and the Guarantor in connection with any Registration Statement.

         "REGISTRATION STATEMENT" shall mean any registration statement of the
Company and the Guarantor which covers any of the Exchange Securities or
Registrable Securities pursuant to the provisions of this Agreement, and all
amendments and supplements to any such Registration Statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all documents incorporated by reference
therein.

         "RULE 144(k) PERIOD" shall mean the period of two years (or such
shorter period as may hereafter be referred to in Rule 144(k) under the
Securities Act (or similar successor rule)) commencing on the Issue Date.

         "SEC" shall mean the Securities and Exchange Commission.

         "SECURITIES" shall have the meaning set forth in the preamble to this
Agreement.

         "SECURITIES ACT" shall mean the Securities Act of 1933, as amended from
time to time.

         "SHELF REGISTRATION" shall mean a registration effected pursuant to
Section 2(b) hereof.

         "SHELF REGISTRATION EVENT" shall have the meaning set forth in Section
2(b) hereof.

         "SHELF REGISTRATION EVENT DATE" shall have the meaning set forth in
Section 2(b) hereof.

         "SHELF REGISTRATION STATEMENT" shall mean a "shelf" registration
statement of the Company pursuant to the provisions of Section 2(b) hereof which
covers all of the Registrable Securities (except Registrable Securities which
the Holders have elected not to include in such Shelf Registration Statement or
the Holders of which have not complied with their obligations under the
penultimate paragraph of Section 3 hereof or under the first paragraph of
Section 2(b) hereof) on an appropriate form under Rule 415 under the Securities
Act, or any similar rule that may be adopted by the SEC, and all amendments and
supplements to such registration statement,

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including post-effective amendments, in each case including the Prospectus
contained therein, all exhibits thereto and all documents incorporated by
reference therein.

         "SPECIAL INTEREST PREMIUM" shall have the meaning set forth in Section
2(e) hereof.

         "TIA" shall have the meaning set forth in Section 3(k) hereof.

         "TRUSTEE" shall mean the trustee under the Indenture.

                  2.       REGISTRATION UNDER THE SECURITIES ACT.

                  (a) EXCHANGE OFFER. Except as set forth in Section 2(b) below,
the Company and the Guarantor shall, for the benefit of the Holders, at the
Company's cost, use its reasonable best efforts to (i) file with the SEC within
150 calendar days after the Issue Date an Exchange Offer Registration Statement
on an appropriate form under the Securities Act relating to the Exchange Offer,
(ii) cause such Exchange Offer Registration Statement to be declared effective
under the Securities Act by the SEC not later than the date which is 210
calendar days after the Issue Date, (iii) keep such Exchange Offer Registration
Statement effective for not less than 30 calendar days (or longer if required by
applicable law) after the date notice of the Exchange Offer is mailed to the
Holders and (iv) cause the Exchange Offer to be consummated within 240 calendar
days after the Issue Date. Promptly after the effectiveness of the Exchange
Offer Registration Statement, the Company shall commence the Exchange Offer, it
being the objective of such Exchange Offer to enable each Holder eligible and
electing to exchange Registrable Securities for a like principal amount of
Exchange Notes together with the Exchange Guarantees (provided that such Holder
(i) is not an Affiliate of the Company or the Guarantor, (ii) is not a
broker-dealer tendering Registrable Securities acquired directly from the
Company, (iii) acquires the Exchange Securities in the ordinary course of such
Holder's business and (iv) has no arrangements or understandings with any Person
to participate in the Exchange Offer for the purpose of distributing the
Exchange Securities) to transfer such Exchange Securities from and after their
receipt without any limitations or restrictions under the Securities Act and
under state securities or blue sky laws.

                  In connection with the Exchange Offer, the Company and the
Guarantor shall:

         (i) mail to each Holder a copy of the Prospectus forming part of the
Exchange Offer Registration Statement, together with an appropriate letter of
transmittal and related documents;

         (ii) keep the Exchange Offer open for acceptance for a period of not
less than 30 days after the date notice thereof is mailed to the Holders (or
longer if required by applicable law) (such period referred to herein as the
"EXCHANGE PERIOD");

         (iii) utilize the services of the Depositary for the Exchange Offer
with respect to Notes represented by a global certificate;

         (iv) permit Holders to withdraw tendered Registrable Securities at any
time prior to the close of business, New York City time, on the last Business
Day of the Exchange Period, by sending to the institution specified in the
notice to Holders, a telegram, telex, facsimile transmission or letter setting
forth the name of such Holder, the principal amount of Registrable

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Securities delivered for exchange, and a statement that such Holder is
withdrawing his election to have such Registrable Securities exchanged;

         (v) notify each Holder that any Registrable Security not tendered by
such Holder in the Exchange Offer will remain outstanding and continue to accrue
interest but will not retain any rights under this Agreement (except in the case
of the Initial Purchasers and Participating Broker-Dealers as provided herein);
and

         (vi) otherwise comply in all respects with all applicable laws relating
to the Exchange Offer.

                  As soon as practicable after the close of the Exchange Offer,
the Company and the Guarantor shall:

          (i) accept for exchange all Registrable Securities or portions thereof
duly tendered and not validly withdrawn pursuant to the Exchange Offer in
accordance with the terms of the Exchange Offer Registration Statement and
letter of transmittal which is an exhibit thereto;

         (ii) deliver, or cause to be delivered, to the Trustee for cancellation
all Registrable Securities or portions thereof so accepted for exchange by the
Company and the Guarantor; and

         (iii) issue, and cause the Trustee under the Indenture to promptly
authenticate and deliver to each Holder, Exchange Securities equal in principal
amount to the principal amount of the Notes as are surrendered by such Holder,
and the Guarantor will execute the Exchange Guarantees.

                  Interest on each Exchange Note issued pursuant to the Exchange
Offer will accrue from the last date on which interest was paid or duly provided
for on the Note surrendered in exchange therefor or, if no interest has been
paid on such Note, from the Issue Date. To the extent not prohibited by any law
or applicable interpretation of the staff of the SEC, the Company and the
Guarantor shall use reasonable best efforts to complete the Exchange Offer as
provided above, and shall comply with the applicable requirements of the
Securities Act, the Exchange Act and other applicable laws in connection with
the Exchange Offer. The Exchange Offer shall not be subject to any conditions
other than the conditions referred to in Section 2(b)(i) and (ii) below and
those conditions that are customary in similar exchange offers. Each Holder of
Registrable Securities who wishes to exchange such Registrable Securities for
Exchange Securities in the Exchange Offer will be required to make certain
customary representations in connection therewith, including, in the case of any
Holder, representations that (i) it is not an Affiliate of the Company or the
Guarantor, (ii) it is not a broker-dealer tendering Registrable Securities
acquired directly from the Company, (iii) the Exchange Securities to be received
by it are being acquired in the ordinary course of its business and (iv) at the
time of the Exchange Offer, it has no arrangements or understandings with any
Person to participate in the distribution (within the meaning of the Securities
Act) of the Exchange Securities. The Company and the Guarantor shall inform the
Initial Purchasers, after consultation with the Trustee, of the names and
addresses of the Holders to whom the Exchange Offer is made, and the Initial
Purchasers shall have the right to contact such Holders in order to facilitate
the tender of Registrable Securities in the Exchange Offer.

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                  Upon consummation of the Exchange Offer in accordance with
this Section 2(a), the provisions of this Agreement shall continue to apply,
MUTATIS MUTANDIS, solely with respect to Exchange Securities held by
Participating Broker-Dealers, and the Company and the Guarantor shall have no
further obligation to register the Registrable Securities held by any Holder
pursuant to Section 2(b) of this Agreement.

                  (b) SHELF REGISTRATION. If (i) because of any change in law or
in currently prevailing interpretations thereof by the staff of the SEC, the
Company or the Guarantor is not permitted to effect the Exchange Offer as
contemplated by Section 2(a) hereof, (ii) the Exchange Offer is not consummated
within 240 days after the Issue Date or (iii) upon the request of any Initial
Purchaser with respect to any Registrable Securities held by it, if such Initial
Purchaser is not permitted, in the reasonable opinion of Brown & Wood LLP,
pursuant to applicable law or applicable interpretations of the staff of the
SEC, to participate in the Exchange Offer and thereby receive securities that
are freely tradeable without restriction under the Securities Act and applicable
blue sky or state securities laws (other than due solely to the status of such
Initial Purchaser as an Affiliate of the Company or the Guarantor or as a
Participating Broker-Dealer)(any of the events specified in (i), (ii) or (iii)
being a "SHELF REGISTRATION EVENT", and the date of occurrence thereof, the
"SHELF REGISTRATION EVENT DATE"), then in addition to or in lieu of conducting
the Exchange Offer contemplated by Section 2(a), as the case may be, the Company
and the Guarantor shall promptly notify the Holders in writing thereof and
shall, at its cost, file as promptly as practicable after such Shelf
Registration Event Date and, in any event, within 90 days after such Shelf
Registration Event Date, a Shelf Registration Statement providing for the sale
by the Holders of all of the Registrable Securities (other than Registrable
Securities owned by Holders who have elected not to include such Registrable
Securities in such Shelf Registration Statement or who have not complied with
their obligations under the penultimate paragraph of Section 3 hereof or under
this paragraph, and shall use its reasonable best efforts to cause such Shelf
Registration Statement to be declared effective by the SEC as soon as
practicable. No Holder of Registrable Securities shall be entitled to include
any of its Registrable Securities in any Shelf Registration pursuant to this
Agreement unless and until such Holder agrees in writing to be bound by all of
the provisions of this Agreement applicable to such Holder and furnishes to the
Company and the Guarantor in writing, within 15 days after receipt of a request
therefor, such information as the Company and the Guarantor may, after
conferring with counsel with regard to information relating to Holders that
would be required by the SEC to be included in such Shelf Registration Statement
or Prospectus included therein, reasonably request for inclusion in any Shelf
Registration Statement or Prospectus included therein. Each Holder as to which
any Shelf Registration is being effected agrees to furnish to the Company and
the Guarantor all information with respect to such Holder necessary to make the
information previously furnished to the Company and the Guarantor by such Holder
not materially misleading.

                  The Company and the Guarantor agree to use their reasonable
best efforts to keep the Shelf Registration Statement continuously effective and
the Prospectus usable for resales for the earlier of: (a) the Rule 144(k) Period
or (b) such time as all of the securities covered by the Shelf Registration
Statement have been sold pursuant to the Shelf Registration Statement or cease
to be Registrable Securities (the "EFFECTIVENESS PERIOD"). The Company and the
Guarantor shall not permit any securities other than (i) the Company's and the
Guarantor's issued and outstanding securities possessing incidental registration
rights and (ii) Registrable Securities, to

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be included in the Shelf Registration. The Company and the Guarantor will, in
the event a Shelf Registration Statement is declared effective, provide to
each Holder of Registrable Securities covered thereby a reasonable number of
copies of the Prospectus which is a part of the Shelf Registration Statement,
notify each such Holder when the Shelf Registration has become effective and
take any other action required to permit unrestricted resales of the
Registrable Securities. The Company and the Guarantor further agree, if
necessary, to supplement or amend the Shelf Registration Statement, if
required by the rules, regulations or instructions applicable to the
registration form used by the Company and the Guarantor for such Shelf
Registration Statement or by the Securities Act or by any other rules and
regulations thereunder for shelf registrations, and the Company and the
Guarantor agree to furnish to the Holders of Registrable Securities covered
by such Shelf Registration Statement copies of any such supplement or
amendment promptly after its being used or filed with the SEC.

                  (c) EXPENSES. The Company and the Guarantor shall pay all
Registration Expenses in connection with any Registration Statement filed
pursuant to Section 2(a) and/or 2(b) hereof and will reimburse the Initial
Purchasers for the reasonable fees and disbursements of Brown & Wood LLP
incurred in connection with the Exchange Offer. Except as provided herein, each
Holder shall pay all expenses of its counsel, underwriting discounts and
commissions and transfer taxes, if any, relating to the sale or disposition of
such Holder's Registrable Securities pursuant to the Shelf Registration
Statement.

                  (d) EFFECTIVE REGISTRATION STATEMENT. An Exchange Offer
Registration Statement pursuant to Section 2(a) hereof or a Shelf Registration
Statement pursuant to Section 2(b) hereof will not be deemed to have become
effective unless it has been declared effective by the SEC; PROVIDED, HOWEVER,
that if, after it has been declared effective, the offering of Registrable
Securities pursuant to such Exchange Offer Registration Statement or Shelf
Registration Statement is interfered with by any stop order, injunction or other
order or requirement of the SEC or any other governmental agency or court, such
Exchange Offer Registration Statement or Shelf Registration Statement will be
deemed not to have been effective during the period of such interference, until
the offering of Registrable Securities pursuant to such Registration Statement
may legally resume. The Company and the Guarantor will be deemed not to have
used their reasonable best efforts to cause the Exchange Offer Registration
Statement or the Shelf Registration Statement, as the case may be, to become, or
to remain, effective during the requisite period if they voluntarily take any
action that would result in any such Registration Statement not being declared
effective or that would result in the Holders of Registrable Securities covered
thereby not being able to exchange or offer and sell such Registrable Securities
during that period, unless such action is required by applicable law.

                  (e)  SPECIAL INTEREST PREMIUM.  In the event that:

                           (i)  the Exchange Offer Registration Statement is
not filed with the SEC on or prior to the 150th day after the Issue Date, then,
commencing on the 151st day after the Issue Date, a special interest premium
(the "Special Interest Premium") shall accrue on the principal amount of the
Notes at a rate of 0.25% per annum;

                           (ii) the Exchange Offer Registration Statement is not
declared effective by the SEC on or prior to the 210th day after the Issue Date,
then, commencing on the 211th day

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after the Issue Date, a Special Interest Premium shall accrue on the
principal amount of the Notes at a rate of 0.25% per annum;

                           (iii) (A) the Company has not exchanged Exchange
Notes for all Notes validly tendered, or the Guarantor has not executed the
Exchange Guarantees in respect of the Exchange Notes, in accordance with the
terms of the Exchange Offer on or prior to the 240th day after the Issue Date or
(B) if the Shelf Registration Statement is required to be filed pursuant to
Section 2(b) but is not declared effective by the SEC on or prior to the 240th
day after the Issue Date, then, commencing on the 241st day after the Issue
Date, a Special Interest Premium shall accrue on the principal amount of the
Notes at the rate of 0.25% per annum; or

                           (iv) the Shelf Registration Statement has been
declared effective and such Shelf Registration Statement ceases to be effective
or the Prospectus ceases to be usable for resales (A) at any time prior to the
expiration of the Effectiveness Period or (B) if related to corporate
developments, public filings or similar events or to correct a material
misstatement or omission in the Prospectus, for more than 60 days (whether or
not consecutive) in any twelve-month period, then a Special Interest Premium
shall accrue on the principal amount of the Notes at a rate of 0.25% per annum
commencing on the day (in the case of (A) above), or the 61st day after (in the
case of (B) above), such Shelf Registration Statement ceases to be effective or
the Prospectus ceases to be usable for resales;

PROVIDED, HOWEVER, that the aggregate amount of the Special Interest Premium in
respect of the Notes may not exceed 0.25% per annum; PROVIDED, FURTHER, HOWEVER,
that (1) upon the filing of the Exchange Offer Registration Statement (in the
case of clause (i) above), (2) upon the effectiveness of the Exchange Offer
Registration Statement (in the case of clause (ii) above), (3) upon the exchange
of Exchange Notes for all Notes validly tendered and execution of the Exchange
Guarantees (in the case of clause (iii)(A) above) or upon the effectiveness of
the Shelf Registration Statement (in the case of clause (iii) (B) above) or (4)
the earlier of (y) such time as the Shelf Registration Statement which had
ceased to remain effective or the Prospectus which had ceased to be usable for
resales again becomes effective and usable for resales and (z) the expiration of
the Effectiveness Period (in the case of clause (iv) above), the Special
Interest Premium on the principal amount of the Notes as a result of such clause
(or the relevant subclause thereof) shall cease to accrue;

PROVIDED, FURTHER, HOWEVER, that if the Exchange Offer Registration Statement is
not declared effective by the SEC on or prior to the 240th day after the Issue
Date and the Company and the Guarantor shall request Holders to provide the
information required by the SEC for inclusion in the Shelf Registration
Statement, the Notes owned by Holders who do not provide such information when
required pursuant to Section 2(b) will not be entitled to any Special Interest
Premium for any day after the 240th day after the Issue Date.

         Any Special Interest Premium due pursuant to Section 2(e)(i), (ii),
(iii) or (iv) above will be payable in cash on the next succeeding February 15
or August 15, as the case may be, to Holders on the relevant record dates for
the payment of interest pursuant to the Indenture.

                  (f) SPECIFIC ENFORCEMENT. Without limiting the remedies
available to the Holders, the Company and the Guarantor acknowledge that any
failure by the Company and the Guarantor

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to comply with its respective obligations under Section 2(a) and Section 2(b)
hereof may result in material irreparable injury to the Holders for which
there is no adequate remedy at law, that it would not be possible to measure
damages for such injuries precisely and that, in the event of any such
failure, any Holder may obtain such relief as may be required to specifically
enforce the Company's and the Guarantor's obligations under Section 2(a) and
Section 2(b) hereof.

                  3. REGISTRATION PROCEDURES. In connection with the obligations
of the Company and the Guarantor with respect to the Registration Statements
pursuant to Sections 2(a) and 2(b) hereof, the Company and the Guarantor shall
use their reasonable best efforts to:

                  (a) prepare and file with the SEC a Registration Statement or
                  Registration Statements as prescribed by Sections 2(a) and
                  2(b) hereof within the relevant time period specified in
                  Section 2 hereof on the appropriate form under the Securities
                  Act, which form shall (i) be selected by the Company and the
                  Guarantor, (ii) in the case of a Shelf Registration, be
                  available for the sale of the Registrable Securities by the
                  selling Holders thereof and, in the case of an Exchange Offer,
                  be available for the exchange of Registrable Securities, and
                  (iii) comply as to form in all material respects with the
                  requirements of the applicable form and include all financial
                  statements required by the SEC to be filed therewith; the
                  Company and the Guarantor shall use their reasonable best
                  efforts to cause such Registration Statement to become
                  effective and remain effective (and, in the case of a Shelf
                  Registration Statement, the Prospectus to be usable for
                  resales) in accordance with Section 2 hereof; PROVIDED,
                  HOWEVER, that if (1) such filing is pursuant to Section 2(b),
                  or (2) a Prospectus contained in an Exchange Offer
                  Registration Statement filed pursuant to Section 2(a) is
                  required to be delivered under the Securities Act by any
                  Participating Broker-Dealer who seeks to sell Exchange
                  Securities, before filing any Registration Statement or
                  Prospectus or any amendments or supplements thereto, the
                  Company shall furnish to and afford the Holders of the
                  Registrable Securities and each such Participating
                  Broker-Dealer, as the case may be, covered by such
                  Registration Statement, their counsel and the managing
                  underwriters, if any, a reasonable opportunity to review
                  copies of all such documents (including copies of any
                  documents to be incorporated by reference therein and all
                  exhibits thereto) proposed to be filed; and the Company and
                  the Guarantor shall not file any Registration Statement or
                  Prospectus or any amendments or supplements thereto in respect
                  of which the Holders must be afforded an opportunity to review
                  prior to the filing of such document if the Majority Holders
                  of the Registrable Securities, depending solely upon which
                  Holders must be afforded the opportunity of such review, or
                  such Participating Broker-Dealer, as the case may be, their
                  counsel or the managing underwriters, if any, shall reasonably
                  object in a timely manner;

                  (b) prepare and file with the SEC such amendments and
                  post-effective amendments to each Registration Statement as
                  may be necessary to keep such Registration Statement effective
                  for the Effectiveness Period or the Applicable Period, as the
                  case may be, and cause each Prospectus to be supplemented, if
                  so determined by the Company and the Guarantor or requested by
                  the SEC, by any required prospectus supplement and as so
                  supplemented to be filed pursuant to

                                       10
<PAGE>   11

                  Rule 424 (or any similar provision then in force) under the
                  Securities Act, and comply with the provisions of the
                  Securities Act, the Exchange Act and the rules and
                  regulations promulgated thereunder applicable to it with
                  respect to the disposition of all securities covered by
                  each Registration Statement during the Effectiveness Period
                  or the Applicable Period, as the case may be, in accordance
                  with the intended method or methods of distribution by the
                  selling Holders thereof described in this Agreement
                  (including sales by any Participating Broker-Dealer);

                  (c) in the case of a Shelf Registration, (i) notify each
                  Holder of Registrable Securities included in the Shelf
                  Registration Statement, at least three Business Days prior to
                  filing, that a Shelf Registration Statement with respect to
                  the Registrable Securities is being filed and advising such
                  Holder that the distribution of Registrable Securities will be
                  made in accordance with the method selected by the Majority
                  Holders of the Registrable Securities, (ii) furnish to each
                  Holder of Registrable Securities included in the Shelf
                  Registration Statement and to each underwriter of an
                  underwritten offering of Registrable Securities, if any,
                  without charge, as many copies of each Prospectus, including
                  each preliminary prospectus, and any amendment or supplement
                  thereto, and such other documents as such Holder or
                  underwriter may reasonably request, in order to facilitate the
                  public sale or other disposition of the Registrable Securities
                  and (iii) consent to the use of the Prospectus or any
                  amendment or supplement thereto by each of the selling Holders
                  of Registrable Securities included in the Shelf Registration
                  Statement in connection with the offering and sale of the
                  Registrable Securities covered by the Prospectus or any
                  amendment or supplement thereto;

                  (d) in the case of a Shelf Registration, register or qualify
                  the Registrable Securities under all applicable state
                  securities or "blue sky" laws of such jurisdictions by the
                  time the applicable Registration Statement is declared
                  effective by the SEC as any Holder of Registrable Securities
                  covered by a Registration Statement and each underwriter of an
                  underwritten offering of Registrable Securities shall
                  reasonably request in writing in advance of such date of
                  effectiveness, and do any and all other acts and things which
                  may be reasonably necessary or advisable to enable such Holder
                  and underwriter to consummate the disposition in each such
                  jurisdiction of such Registrable Securities owned by such
                  Holder; PROVIDED, HOWEVER, that the Company and the Guarantor
                  shall not be required to (i) qualify as a foreign corporation
                  or as a dealer in securities in any jurisdiction where it
                  would not otherwise be required to qualify but for this
                  Section 3(d), (ii) file any general consent to service of
                  process in any jurisdiction where it would not otherwise be
                  subject to such service of process or (iii) subject itself to
                  taxation in any such jurisdiction if it is not then so
                  subject;

                  (e) (1) in the case of a Shelf Registration or (2) if
                  Participating Broker-Dealers from whom the Company and the
                  Guarantor have received prior written notice that they will be
                  utilizing the Prospectus contained in the Exchange Offer
                  Registration Statement as provided in Section 3(s) hereof, are
                  seeking to sell Exchange Securities and are required to
                  deliver Prospectuses, promptly notify

                                       11
<PAGE>   12

                  each Holder of Registrable Securities, or such
                  Participating Broker-Dealers, as the case may be, their
                  counsel and the managing underwriters, if any, and promptly
                  confirm such notice in writing (i) when a Registration
                  Statement has become effective and when any post-effective
                  amendments thereto become effective, (ii) of any request by
                  the SEC or any state securities authority for amendments
                  and supplements to a Registration Statement or Prospectus
                  or for additional information after the Registration
                  Statement has become effective, (iii) of the issuance by
                  the SEC or any state securities authority of any stop order
                  suspending the effectiveness of a Registration Statement or
                  the qualification of the Registrable Securities or the
                  Exchange Securities to be offered or sold by any
                  Participating Broker-Dealer in any jurisdiction described
                  in Section 3(d) hereof or the initiation of any proceedings
                  for that purpose, (iv) in the case of a Shelf Registration,
                  if, between the effective date of a Registration Statement
                  and the closing of any sale of Registrable Securities
                  covered thereby, the representations and warranties of the
                  Company contained in any purchase agreement, securities
                  sales agreement or other similar agreement cease to be true
                  and correct in all material respects, (v) of the happening
                  of any event or the failure of any event to occur or the
                  discovery of any facts, during the Effectiveness Period,
                  which makes any statement made in such Registration
                  Statement or the related Prospectus untrue in any material
                  respect or which causes such Registration Statement or
                  Prospectus to omit to state a material fact necessary in
                  order to make the statements therein, in the light of the
                  circumstances under which they were made, not misleading,
                  as well as any other corporate developments, public filings
                  with the SEC or similar events causing such Registration
                  Statement not to be effective or the Prospectus not to be
                  useable for resales and (vi) of the reasonable
                  determination of the Company and the Guarantor that a
                  post-effective amendment to the Registration Statement
                  would be appropriate;

                  (f) obtain the withdrawal of any order suspending the
                  effectiveness of a Registration Statement at the earliest
                  possible moment;

                  (g) in the case of a Shelf Registration, furnish to each
                  Holder of Registrable Securities included within the coverage
                  of such Shelf Registration Statement, without charge, at least
                  one conformed copy of each Registration Statement relating to
                  such Shelf Registration and any post-effective amendment
                  thereto (without documents incorporated therein by reference
                  or exhibits thereto, unless requested);

                  (h) in the case of a Shelf Registration, cooperate with the
                  selling Holders of Registrable Securities to facilitate the
                  timely preparation and delivery of certificates representing
                  Registrable Securities to be sold and not bearing any
                  restrictive legends (except any customary legend borne by
                  securities held through The Depository Trust Company or any
                  similar depository) and in such denominations (consistent with
                  the provisions of the Indenture and the officers' certificate
                  establishing the forms and the terms of the Notes pursuant to
                  the Indenture) and registered in such names as the selling
                  Holders or the underwriters

                                       12
<PAGE>   13

                  may reasonably request at least two Business Days prior to
                  the closing of any sale of Registrable Securities pursuant
                  to such Shelf Registration Statement;

                  (i) in the case of a Shelf Registration or an Exchange Offer
                  Registration, promptly after the occurrence of any event
                  specified in Section 3(e)(ii), 3(e)(iii), 3(e)(v) (subject to
                  a 60-day grace period within any twelve-month period) or
                  3(e)(vi) hereof, prepare a supplement or post-effective
                  amendment to such Registration Statement or the related
                  Prospectus or any document incorporated therein by reference
                  or file any other required document so that, as thereafter
                  delivered to the purchasers of the Registrable Securities,
                  such Prospectus will not include any untrue statement of a
                  material fact or omit to state a material fact necessary to
                  make the statements therein, in the light of the circumstances
                  under which they were made, not misleading; and the Company
                  shall notify each Holder to suspend use of the Prospectus as
                  promptly as practicable after the occurrence of such an event,
                  and each Holder hereby agrees to suspend use of the Prospectus
                  until the Company and the Guarantor have amended or
                  supplemented the Prospectus to correct such misstatement or
                  omission;

                  (j) obtain a CUSIP number for the Exchange Securities or the
                  Registrable Securities, as the case may be, not later than the
                  effective date of a Registration Statement, and provide the
                  Trustee with certificates for the Exchange Securities or the
                  Registrable Securities, as the case may be, in a form eligible
                  for deposit with the Depositary;

                  (k) cause the Indenture to be qualified under the Trust
                  Indenture Act of 1939, as amended (the "TIA"), in connection
                  with the registration of the Exchange Securities or
                  Registrable Securities, as the case may be, and effect such
                  changes to such documents as may be required for them to be so
                  qualified in accordance with the terms of the TIA and execute,
                  and cause the Trustee to execute, all documents as may be
                  required to effect such changes, and all other forms and
                  documents required to be filed with the SEC to enable such
                  documents to be so qualified in a timely manner;

                  (l) in the case of a Shelf Registration, enter into such
                  agreements (including underwriting agreements) as are
                  customary in underwritten offerings and take all such other
                  appropriate actions in connection therewith as are reasonably
                  requested by the Holders of at least 25% in aggregate
                  principal amount of the Registrable Securities in order to
                  expedite or facilitate the registration or the disposition of
                  the Registrable Securities;

                  (m) in the case of a Shelf Registration, whether or not an
                  underwriting agreement is entered into and whether or not the
                  registration is an underwritten registration, if requested by
                  (x) an Initial Purchaser, in the case where such Initial
                  Purchaser holds Notes acquired by it as part of its initial
                  placement and Holders of at least 25% in aggregate principal
                  amount of the Registrable Securities covered thereby: (i) make
                  such representations and warranties to Holders of such
                  Registrable Securities and the underwriters (if any), with
                  respect to the business of the

                                       13
<PAGE>   14

                  Company, the Guarantor, the subsidiaries of the Guarantor,
                  and if applicable, Quest Communications International Inc.
                  as then conducted and the Registration Statement,
                  Prospectus and documents, if any, incorporated or deemed to
                  be incorporated by reference therein, in each case, as are
                  customarily made by issuers to underwriters in underwritten
                  offerings, and confirm the same if and when requested; (ii)
                  obtain opinions of counsel to the Company and the Guarantor
                  and updates thereof (which may be in the form of a reliance
                  letter) in form and substance reasonably satisfactory to
                  the managing underwriters (if any) and the Holders of a
                  majority in amount of the Registrable Securities being
                  sold, addressed to each selling Holder and the underwriters
                  (if any) covering the matters customarily covered in
                  opinions requested in underwritten offerings and such other
                  matters as may be reasonably requested by such underwriters
                  (it being agreed that the matters to be covered by such
                  opinion may be subject to customary qualifications and
                  exceptions); (iii) obtain "cold comfort" letters and
                  updates thereof in form and substance reasonably
                  satisfactory to the managing underwriters from the
                  independent certified public accountants of the Company,
                  the Guarantor, and the subsidiaries of the Guarantor (and,
                  if necessary, any other independent certified public
                  accountants of any business acquired or to be acquired by
                  the Guarantor for which financial statements and financial
                  data are, or are required to be, included in the
                  Registration Statement), addressed to each of the
                  underwriters, such letters to be in customary form and
                  covering matters of the type customarily covered in "cold
                  comfort" letters in connection with underwritten offerings
                  and such other matters as reasonably requested by such
                  underwriters in accordance with Statement on Auditing
                  Standards No. 72; and (iv) if an underwriting agreement is
                  entered into, the same shall contain indemnification
                  provisions and procedures no less favorable than those set
                  forth in Section 4 hereof (or such other provisions and
                  procedures acceptable to Holders of a majority in aggregate
                  principal amount of Registrable Securities covered by such
                  Registration Statement and the managing underwriters)
                  customary for such agreements with respect to all parties
                  to be indemnified pursuant to said Section (including,
                  without limitation, such underwriters and selling Holders);
                  and in the case of an underwritten registration, the above
                  requirements shall be satisfied at each closing under the
                  related underwriting agreement or as and to the extent
                  required thereunder;

                  (n) if (1) a Shelf Registration is filed pursuant to Section
                  2(b) or (2) a Prospectus contained in an Exchange Offer
                  Registration Statement filed pursuant to Section 2(a) is
                  required to be delivered under the Securities Act by any
                  Participating Broker-Dealer who seeks to sell Exchange
                  Securities during the Applicable Period, make reasonably
                  available for inspection by any selling Holder of Registrable
                  Securities or Participating Broker-Dealer, as applicable, who
                  certifies to the Company and the Guarantor that it has a
                  current intention to sell Registrable Securities pursuant to
                  the Shelf Registration, any underwriter participating in any
                  such disposition of Registrable Securities, if any, and any
                  attorney, accountant or other agent retained by any such
                  selling Holder, Participating Broker-Dealer, as the case may
                  be, or underwriter (collectively, the "INSPECTORS"), at the
                  offices where normally kept, during the Company's and the

                                        14
<PAGE>   15

                  Guarantor's normal business hours, all financial and other
                  records, pertinent organizational and operational documents
                  and properties of the Company, the Guarantor and the
                  Guarantor's subsidiaries (collectively, the "RECORDS") as
                  shall be reasonably necessary to enable them to conduct due
                  diligence activities, and cause the officers, trustees and
                  employees of the Company, the Guarantor and the Guarantor's
                  subsidiaries to supply all relevant information in each case
                  reasonably requested by any such Inspector in connection with
                  such Registration Statement; records and information which the
                  Company and the Guarantor determine, in good faith, to be
                  confidential and any Records and information which it notifies
                  the Inspectors are confidential shall not be disclosed to any
                  Inspector except where (i) the disclosure of such Records or
                  information is necessary to avoid or correct a material
                  misstatement or omission in such Registration Statement, (ii)
                  the release of such Records or information is ordered pursuant
                  to a subpoena or other order from a court of competent
                  jurisdiction or is necessary in connection with any action,
                  suit or proceeding or (iii) such Records or information
                  previously has been made generally available to the public;
                  each selling Holder of such Registrable Securities and each
                  such Participating Broker-Dealer will be required to agree in
                  writing that Records and information obtained by it as a
                  result of such inspections shall be deemed confidential and
                  shall not be used by it as the basis for any market
                  transactions in the securities of the Company and the
                  Guarantor unless and until such is made generally available to
                  the public through no fault of an Inspector or a selling
                  Holder; and each selling Holder of such Registrable Securities
                  and each such Participating Broker-Dealer will be required to
                  further agree in writing that it will, upon learning that
                  disclosure of such Records or information is sought in a court
                  of competent jurisdiction, or in connection with any action,
                  suit or proceeding, give notice to the Company and the
                  Guarantor and allow the Company and the Guarantor at their
                  expense to undertake appropriate action to prevent disclosure
                  of the Records and information deemed confidential;

                  (o) comply with all applicable rules and regulations of the
                  SEC so long as any provision of this Agreement shall be
                  applicable and make generally available to its securityholders
                  earning statements satisfying the provisions of Section 11(a)
                  of the Securities Act and Rule 158 thereunder (or any similar
                  rule promulgated under the Securities Act) no later than 50
                  days after the end of any 12-month period (or 105 days after
                  the end of any 12-month period if such period is a fiscal
                  year) (i) commencing at the end of any fiscal quarter in which
                  Registrable Securities are sold to underwriters in a firm
                  commitment or best efforts underwritten offering and (ii) if
                  not sold to underwriters in such an offering, commencing on
                  the first day of the first fiscal quarter of the Company and
                  the Guarantor after the effective date of a Registration
                  Statement, which statements shall cover said 12-month periods,
                  provided that the obligations under this paragraph (o) shall
                  be satisfied by the timely filing of quarterly and annual
                  reports on Forms 10-Q and 10-K under the Exchange Act;

                  (p) if an Exchange Offer is to be consummated, upon delivery
                  of the Registrable Securities by Holders to the Company and
                  the Guarantor (or to such other Person as directed by the
                  Company and the Guarantor), in exchange for the Exchange

                                       15
<PAGE>   16

                  Securities, the Company shall mark, or cause to be marked, on
                  such Notes delivered by such Holders that such Notes are being
                  cancelled in exchange for the Exchange Securities; it being
                  understood that in no event shall such Notes be marked as paid
                  or otherwise satisfied;

                  (q) cooperate with each seller of Registrable Securities
                  covered by any Registration Statement and each underwriter, if
                  any, participating in the disposition of such Registrable
                  Securities and their respective counsel in connection with any
                  filings required to be made with the NASD;

                  (r) take all other steps necessary to effect the registration
                  of the Registrable Securities covered by a Registration
                  Statement contemplated hereby;

                  (s) (A) in the case of the Exchange Offer Registration
                  Statement (i) include in the Exchange Offer Registration
                  Statement a section entitled "Plan of Distribution," which
                  section shall be reasonably acceptable to the Initial
                  Purchasers or another representative of the Participating
                  Broker-Dealers, and which shall contain a summary statement of
                  the positions taken or policies made by the staff of the SEC
                  with respect to the potential "underwriter" status of any
                  broker-dealer that holds Registrable Securities acquired for
                  its own account as a result of market-making activities or
                  other trading activities (a "PARTICIPATING BROKER-DEALER") and
                  that will be the beneficial owner (as defined in Rule 13d-3
                  under the Exchange Act) of Exchange Securities to be received
                  by such broker-dealer in the Exchange Offer, whether such
                  positions or policies have been publicly disseminated by the
                  staff of the SEC or such positions or policies, in the
                  reasonable judgment of the Initial Purchasers or such other
                  representative, represent the prevailing views of the staff of
                  the SEC, including a statement that any such broker-dealer who
                  receives Exchange Securities for Registrable Securities
                  pursuant to the Exchange Offer may be deemed a statutory
                  underwriter and must deliver a prospectus meeting the
                  requirements of the Securities Act in connection with any
                  resale of such Exchange Securities, (ii) furnish to each
                  Participating Broker-Dealer who has delivered to the Company
                  and the Guarantor the notice referred to in Section 3(e),
                  without charge, as many copies of each Prospectus included in
                  the Exchange Offer Registration Statement, including any
                  preliminary Prospectus, and any amendment or supplement
                  thereto, as such Participating Broker-Dealer may reasonably
                  request (the Company and the Guarantor hereby consent to the
                  use of the Prospectus forming part of the Exchange Offer
                  Registration Statement or any amendment or supplement thereto
                  by any Person subject to the prospectus delivery requirements
                  of the Securities Act, including all Participating
                  Broker-Dealers, in connection with the sale or transfer of the
                  Exchange Securities covered by the Prospectus or any amendment
                  or supplement thereto), (iii) use its reasonable best efforts
                  to keep the Exchange Offer Registration Statement effective
                  and to amend and supplement the Prospectus contained therein
                  in order to permit such Prospectus to be lawfully delivered by
                  all Persons subject to the prospectus delivery requirements of
                  the Securities Act for such period of time as such Persons
                  must comply with such requirements under the Securities Act
                  and applicable rules and regulations in

                                       16
<PAGE>   17

                  order to resell the Exchange Securities; PROVIDED, HOWEVER,
                  that such period shall not be required to exceed 240 days
                  (or such longer period if extended pursuant to the last
                  sentence of Section 3 hereof) (the "APPLICABLE PERIOD"),
                  and (iv) include in the transmittal letter or similar
                  documentation to be executed by an exchange offeree in
                  order to participate in the Exchange Offer (x) the
                  following provision:

                  "If the exchange offeree is a broker-dealer holding
                  Registrable Securities acquired for its own account as a
                  result of market-making activities or other trading
                  activities, it will deliver a prospectus meeting the
                  requirements of the Securities Act in connection with any
                  resale of Exchange Securities received in respect of such
                  Registrable Securities pursuant to the Exchange Offer";

                  and (y) a statement to the effect that by a broker-dealer
                  making the acknowledgment described in clause (x) and by
                  delivering a Prospectus in connection with the exchange of
                  Registrable Securities, the broker-dealer will not be deemed
                  to admit that it is an underwriter within the meaning of the
                  Securities Act; and

                  (B) in the case of any Exchange Offer Registration Statement,
                  the Company and the Guarantor agree to deliver to the Initial
                  Purchasers or to another representative of the Participating
                  Broker-Dealers, if reasonably requested by an Initial
                  Purchaser or such other representative of Participating
                  Broker-Dealers, on behalf of the Participating Broker-Dealers
                  upon consummation of the Exchange Offer (i) an opinion of
                  counsel in form and substance reasonably satisfactory to such
                  Initial Purchaser or such other representative of the
                  Participating Broker-Dealers, covering the matters customarily
                  covered in opinions requested in connection with Exchange
                  Offer Registration Statements and such other matters as may be
                  reasonably requested (it being agreed that the matters to be
                  covered by such opinion may be subject to customary
                  qualifications and exceptions), (ii) an officers' certificate
                  substantially similar to that specified in Section 6(d) and
                  (e) of the Purchase Agreement and such additional
                  certifications as are customarily delivered in a public
                  offering of debt securities and (iii) upon the effectiveness
                  of the Exchange Offer Registration Statement, comfort letters,
                  in each case, in customary form if permitted by Statement on
                  Auditing Standards No. 72.

                  The Company and the Guarantor may require each seller of
Registrable Securities as to which any registration is being effected to furnish
to the Company and the Guarantor such information regarding such seller as may
be required by the staff of the SEC to be included in a Registration Statement.
The Company and the Guarantor may exclude from such registration the Registrable
Securities of any seller who unreasonably fails to furnish such information
within a reasonable time after receiving such request. The Company and the
Guarantor shall have no obligation to register under the Securities Act the
Registrable Securities of a seller who so fails to furnish such information.

                                       17
<PAGE>   18

                  In the case of a Shelf Registration Statement, or if
Participating Broker-Dealers who have notified the Company and the Guarantor
that they will be utilizing the Prospectus contained in the Exchange Offer
Registration Statement as provided in this Section 3(s) are seeking to sell
Exchange Securities and are required to deliver Prospectuses, each Holder
agrees that, upon receipt of any notice from the Company and the Guarantor of
the occurrence of any event specified in Section 3(e)(ii), 3(e)(iii), 3(e)(v)
or 3(e)(vi) hereof, such Holder will forthwith discontinue disposition of
Registrable Securities pursuant to a Registration Statement until such
Holder's receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 3(i) hereof or until it is advised in writing (the
"ADVICE") by the Company and the Guarantor that the use of the applicable
Prospectus may be resumed, and, if so directed by the Company and the
Guarantor, such Holder will deliver to the Company and the Guarantor (at the
Company's and the Guarantor's expense) all copies in such Holder's
possession, other than permanent file copies then in such Holder's
possession, of the Prospectus covering such Registrable Securities or
Exchange Securities, as the case may be, current at the time of receipt of
such notice. If the Company and the Guarantor shall give any such notice to
suspend the disposition of Registrable Securities or Exchangeable Securities,
as the case may be, pursuant to a Registration Statement, the Company and the
Guarantor shall use its reasonable best efforts to file and have declared
effective (if an amendment) as soon as practicable after the resolution of
the related matters an amendment or supplement to the Registration Statement
and shall extend the period during which such Registration Statement is
required to be maintained effective and the Prospectus usable for resales
pursuant to this Agreement by the number of days in the period from and
including the date of the giving of such notice to and including the date
when the Company and the Guarantor shall have made available to the Holders
(x) copies of the supplemented or amended Prospectus necessary to resume such
dispositions or (y) the Advice.

                  4.       INDEMNIFICATION AND CONTRIBUTION. (a) In
connection with any Registration Statement, the Company and the Guarantor
shall jointly and severally indemnify and hold harmless the Initial
Purchasers, each Holder, each underwriter who participates in an offering of
the Registrable Securities, each Participating Broker-Dealer, each Person, if
any, who controls any of such parties within the meaning of Section 15 of the
Securities Act or Section 20 of the Exchange Act and each of their respective
directors, officers, employees and agents, as follows:

                  (i) against any and all loss, liability, claim, damage and
                  expense whatsoever, as incurred, arising out of any untrue
                  statement or alleged untrue statement of a material fact
                  contained in any Registration Statement (or any amendment or
                  supplement thereto), covering Registrable Securities or
                  Exchange Securities, as applicable, or the omission or alleged
                  omission therefrom of a material fact required to be stated or
                  necessary in order to make this statement therein not
                  misleading or arising out of any untrue statement or alleged
                  untrue statement of a material fact contained in any
                  Prospectus, or the omission or alleged omission therefrom of a
                  material fact necessary in order to make the statements
                  therein, in the light of the circumstances under which they
                  were made, not misleading;

                  (ii) against any and all loss, liability, claim, damage and
                  expense whatsoever, as incurred, to the extent of the
                  aggregate amount paid in settlement of any litigation, or any
                  investigation or proceeding by any governmental agency or
                  body, commenced or threatened, or of any claim whatsoever
                  based upon any such

                                       18
<PAGE>   19

                  untrue statement or omission, or any such alleged untrue
                  statement or omission; provided that any such settlement is
                  effected with the prior written consent of the Company and
                  the Guarantor; and

                  (iii) against any and all expenses whatsoever, as incurred
                  (including the reasonable fees and disbursements of counsel
                  chosen by such Holder, such Participating Broker-Dealer, or
                  any underwriter (except to the extent otherwise expressly
                  provided in Section 4(c) hereof)), reasonably incurred in
                  investigating, preparing or defending against any litigation,
                  or any investigation or proceeding by any governmental agency
                  or body, commenced or threatened, or any claim whatsoever
                  based upon any such untrue statement or omission, or any such
                  alleged untrue statement or omission, to the extent that any
                  such expense is not paid under subparagraph (i) or (ii) of
                  this Section 4(a);

PROVIDED, HOWEVER, that this indemnity does not apply to any loss, liability,
claim, damage or expense to the extent arising out of an untrue statement or
omission or alleged untrue statement or omission made in reliance upon and in
conformity with written information furnished in writing to the Company and the
Guarantor by the Initial Purchasers or such Holder, underwriter or Participating
Broker-Dealer for use in a Registration Statement (or any amendment thereto) or
any Prospectus (or any amendment or supplement thereto).

                  (b) Each of the Initial Purchasers and each Holder,
underwriter or Participating Broken-Dealer agrees, severally and not jointly, to
indemnify and hold harmless the Company and the Guarantor and each Person, if
any, who controls the Company or the Guarantor within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act against any and all
loss, liability, claim, damage and expense whatsoever described in the indemnity
contained in Section 4(a) hereof, as incurred, but only with respect to untrue
statements or omissions, or alleged untrue statements or omissions, made in a
Registration Statement (or any amendment thereto) or any Prospectus (or any
amendment or supplement thereto) in reliance upon and in conformity with written
information furnished to the Company and the Guarantor by such Initial
Purchaser, Holder, underwriter or Participating Broker-Dealer expressly for use
in such Registration Statement (or any amendment thereto), or any such
Prospectus (or any amendment or supplement thereto); PROVIDED, HOWEVER, that in
the case of a Shelf Registration Statement, no such Holder shall be liable for
any claims hereunder in excess of the amount of net proceeds received by such
Holder from the sale of Registrable Securities pursuant to such Shelf
Registration Statement.

                  (c) Each indemnified party shall give notice as promptly as
reasonably practicable to each indemnifying party of any action commenced
against it in respect of which indemnity may be sought hereunder, but failure to
so notify an indemnifying party shall not relieve such indemnifying party from
any liability which it may have under this Section 4 to the extent that it is
not materially prejudiced by such failure as a result thereof, and in any event
shall not relieve it from liability which it may have otherwise on account of
this Agreement. In the case of parties indemnified pursuant to Section 4(a) or
(b) above, counsel to the indemnified parties shall be selected by such parties.
An indemnifying party may participate at its own expense in the defense of such
action; provided, however, that counsel to the indemnifying party shall not
(except with the consent of the indemnified party) also be counsel to the
indemnified

                                       19
<PAGE>   20

party. In no event shall the indemnifying parties be liable for the fees and
expenses of more than one counsel (in addition to local counsel), separate
from their own counsel, for all indemnified parties in connection with any
one action or separate but similar or related actions in the same
jurisdiction arising out of the same general allegations or circumstances. No
indemnifying party shall, without the prior written consent of the
indemnified parties, settle or compromise or consent to the entry of any
judgment with respect to any litigation, or any investigation or proceeding
by any governmental agency or body, commenced or threatened, or any claim
whatsoever in respect of which indemnification or contribution could be
sought under this Section 4 (whether or not the indemnified parties are
actual or potential parties thereto), unless such settlement, compromise or
consent (i) includes an unconditional written release of each indemnified
party from all liability arising out of such litigation, investigation,
proceeding or claim and (ii) does not include a statement as to or an
admission of fault, culpability or a failure to act by or on behalf of any
indemnified party.

                  (d) In order to provide for just and equitable contribution in
circumstances under which any of the indemnity provisions set forth in this
Section 4 is for any reason held to be unenforceable by an indemnified party
although applicable in accordance with its terms, the Company, the Guarantor and
the Holders shall contribute to the aggregate losses, liabilities, claims,
damages and expenses of the nature contemplated by such indemnity agreement
incurred by the Company, the Guarantor and the Holders, as incurred; PROVIDED,
HOWEVER, that no Person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any Person that was not guilty of such fraudulent
misrepresentation. As between the Company and the Guarantor and the Holders,
such parties shall contribute to such aggregate losses, liabilities, claims,
damages and expenses of the nature contemplated by this Agreement in such
proportion as shall be appropriate to reflect the relative fault of the Company
and the Guarantor, on the one hand, and the Holders, on the other hand, with
respect to the statements or omissions which resulted in such loss, liability,
claim, damage or expense, or action in respect thereof, as well as any other
relevant equitable considerations. The relative fault of the Company and the
Guarantor, on the one hand, and of the Holders, on the other hand, shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to information supplied by the Company and the
Guarantor, on the one hand, or by or on behalf of the Holders, on the other, and
the parties' relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. The Company, the Guarantor and
the Holders agree that it would not be just and equitable if contribution
pursuant to this Section 4 were to be determined by pro rata allocation or by
any other method of allocation that does not take into account the relevant
equitable considerations. For purposes of this Section 4, each Affiliate of a
Holder, and each director, officer and employee and Person, if any, who controls
a Holder or such Affiliate within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act shall have the same rights to contribution
as such Holder and each Person, if any, who controls the Company and the
Guarantor within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act shall have the same rights to contribution as the Company
and the Guarantor.

                  5.       PARTICIPATION IN AN UNDERWRITTEN REGISTRATION. No
Holder may participate in an underwritten registration hereunder unless such
Holder (a) agrees to sell such Holder's Registrable Securities on the basis
provided in the underwriting arrangement approved by the

                                       20
<PAGE>   21

Persons entitled hereunder to approve such arrangements and (b) completes and
executes all reasonable questionnaires, powers of attorney, indemnities,
underwriting agreements, lock-up letters and other documents reasonably
required under the terms of such underwriting arrangements.

                  6.       SELECTION OF UNDERWRITERS. The Holders of Registrable
Securities covered by the Shelf Registration Statement who desire to do so may
sell the Securities covered by such Shelf Registration in an underwritten
offering, subject to the provisions of Section 3(l) hereof. In any such
underwritten offering, the underwriter or underwriters and manager or managers
that will administer the offering will be selected by the Holders of a majority
in aggregate principal amount of the Registrable Securities included in such
offering; PROVIDED, HOWEVER, that such underwriters and managers must be
reasonably satisfactory to the Company and the Guarantor.

                  7.       MISCELLANEOUS.

                  (a) RULE 144 AND RULE 144A. For so long as the Company and the
Guarantor are subject to the reporting requirements of Section 13 or 15 of the
Exchange Act and any Registrable Securities remain outstanding, the Company and
the Guarantor will file the reports required to be filed by it under the
Securities Act and Section 13(a) or 15(d) of the Exchange Act and the rules and
regulations adopted by the SEC thereunder; PROVIDED, HOWEVER, that if the
Company and the Guarantor ceases to be so required to file such reports, it
will, upon the request of any Holder of Registrable Securities, (a) make
publicly available such information as is necessary to permit sales of its
securities pursuant to Rule 144 under the Securities Act, (b) deliver such
information to a prospective purchaser as is necessary to permit sales of its
securities pursuant to Rule 144A under the Securities Act, and (c) take such
further action that is reasonable in the circumstances, in each case, to the
extent required from time to time to enable such Holder to sell its Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by (i) Rule 144 under the Securities Act, as such
rule may be amended from time to time, (ii) Rule 144A under the Securities Act,
as such rule may be amended from time to time, or (iii) any similar rules or
regulations hereafter adopted by the SEC. Upon the request of any Holder of
Registrable Securities, the Company and the Guarantor will deliver to such
Holder a written statement as to whether it has complied with such requirements.

                  (b) NO INCONSISTENT AGREEMENTS. The Company and the Guarantor
have not entered into, nor will the Company or the Guarantor on or after the
date of this Agreement enter into, any agreement which is inconsistent with the
rights granted to the Holders of Registrable Securities in this Agreement or
otherwise conflicts with the provisions hereof. The rights granted to the
Holders hereunder do not in any way conflict with and are not inconsistent with
the rights granted to the holders of the Company's and the Guarantor's other
issued and outstanding securities under any such agreements.

                  (c) AMENDMENTS AND WAIVERS. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the Company and the Guarantor has obtained the written
consent of Holders of a majority in aggregate principal amount of the
outstanding Registrable Securities affected by such amendment, modification,
supplement, waiver or departure; PROVIDED that no amendment, modification or
supplement or

                                       21
<PAGE>   22

waiver or consent to the departure with respect to the provisions of Section
4 hereof shall be effective as against any Holder of Registrable Securities
unless consented to in writing by such Holder of Registrable Securities.
Notwithstanding the foregoing sentence, (i) this Agreement may be amended,
without the consent of any Holder of Registrable Securities, by written
agreement signed by the Company, the Guarantor and the Initial Purchasers, to
cure any ambiguity, correct or supplement any provision of this Agreement
that may be inconsistent with any other provision of this Agreement or to
make any other provisions with respect to matters or questions arising under
this Agreement which shall not be inconsistent with other provisions of this
Agreement, (ii) this Agreement may be amended, modified or supplemented, and
waivers and consents to departures from the provisions hereof may be given,
by written agreement signed by the Company, the Guarantor and the Initial
Purchasers to the extent that any such amendment, modification, supplement,
waiver or consent is, in their reasonable judgment, necessary or appropriate
to comply with applicable law (including any interpretation of the Staff of
the SEC) or any change therein and (iii) to the extent any provision of this
Agreement relates to an Initial Purchaser, such provision may be amended,
modified or supplemented, and waivers or consents to departures from such
provisions may be given, by written agreement signed by such Initial
Purchaser, the Guarantor and the Company.

                  (d) NOTICES. All notices and other communications provided for
or permitted hereunder shall be made in writing by hand-delivery, registered
first-class mail, telex, telecopier, or any courier guaranteeing overnight
delivery (i) if to a Holder, at the most current address given by such Holder to
the Company and the Guarantor by means of a notice given in accordance with the
provisions of this Section 7(d), which address initially is, with respect to
each Initial Purchaser, the address set forth in the Purchase Agreement; and
(ii) if to the Company or the Guarantor, initially at the Company's and
Guarantor's address set forth in the Purchase Agreement and thereafter at such
other address, notice of which is given in accordance with the provisions of
this Section 7(d).

                  All such notices and communications shall be deemed to have
been duly given: at the time delivered by hand, if personally delivered; five
Business Days after being deposited in the mail, postage prepaid, if mailed;
when answered back, if telexed; when receipt is acknowledged, if telecopied; and
on the next Business Day, if timely delivered to an air courier guaranteeing
overnight delivery.

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

                  (e) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the
benefit of and be binding upon the successors, assigns and transferees of the
Initial Purchasers, including, without limitation and without the need for an
express assignment, subsequent Holders; PROVIDED, HOWEVER, that nothing herein
shall be deemed to permit any assignment, transfer or other disposition of
Registrable Securities in violation of the terms of the Purchase Agreement or
the Indenture. If any transferee of any Holder shall acquire Registrable
Securities in any manner, whether by operation of law or otherwise, such
Registrable Securities shall be held subject to all of the terms of this
Agreement, and by taking and holding such Registrable Securities, such Person
shall be conclusively deemed to have agreed to be bound by and to perform all of
the

                                        22
<PAGE>   23

terms and provisions of this Agreement and such Person shall be entitled to
receive the benefits hereof.

                  (f) THIRD PARTY BENEFICIARIES. Each Holder and any
Participating Broker-Dealer shall be third party beneficiaries of the agreements
made hereunder among the Initial Purchasers, the Guarantor and the Company, and
the Initial Purchasers shall have the right to enforce such agreements directly
to the extent it deems such enforcement necessary or advisable to protect its
rights or the rights of Holders hereunder.

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

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

                  (i) GOVERNING LAW. THIS AGREEMENT SHALL BE DEEMED TO HAVE BEEN
MADE IN THE STATE OF NEW YORK. THE VALIDITY AND INTERPRETATION OF THIS
AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN, SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT
GIVING EFFECT TO ANY PROVISIONS RELATING TO CONFLICTS OF LAWS.

                  (j) SEVERABILITY. In the event that any one or more of the
provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and
enforceability of any such provision in every other respect and of the remaining
provisions contained herein shall not be affected or impaired thereby.

                  (k) SECURITIES HELD BY THE COMPANY OR ITS AFFILIATES. Whenever
the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Company,
the Guarantor or their Affiliates shall not be counted in determining whether
such consent or approval was given by the Holders of such required percentage.

                                        23
<PAGE>   24

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

                                QWEST COMMUNICATIONS INTERNATIONAL INC.

                                By: /s/ YASH RANA
                                    -----------------------------------
                                    Name: Yash Rana
                                    Title: Associate General Counsel

                                QWEST CAPITAL FUNDING, INC.

                                By: /s/ YASH RANA
                                    -----------------------------------
                                    Name: Yash Rana
                                    Title: Associate General Counsel

Confirmed and accepted as of
the date first above written:

SALOMON SMITH BARNEY INC.
LEHMAN BROTHERS INC.

By: SALOMON SMITH BARNEY INC.
     For itself and as Representative of the
     several Initial Purchasers

By: /s/ ALAN B. MITCHELL
    --------------------------------
         Authorized Signatory

                                        24<PAGE>   1

                                                                   EXHIBIT 10.40

                           FORGIVABLE LOAN AGREEMENT

This agreement is made between Pampa Economic Development Corporation and United
Medicorp, Inc., for a forgivable loan in the principle amount $50,000.00. The
loan shall bear interest at the rate of 9.5%. Interest on the balance of the
loan shall not be forgiven.

The PRINCIPLE AMOUNT of this loan shall be DUE AND PAYABLE OR FORGIVEN based on
the terms and conditions of an agreement between the parties, which was executed
on July 28, 2000 and entitled Economic Development and Incentive Agreement.

Interest on the unpaid principle amount of the loan shall be due and payable at
the end of each calendar quarter at the rate of 9.5% ($13.01/day) interest.

This document constitutes the entire agreement between Pampa Economic
Development Corporation and United Medicorp, Inc.

Executed in duplicate originals this the 31st day of October, 2000.

                                             PAMPA ECONOMIC DEVELOPMENT
                                             CORPORATION

                                             By: /s/ RICHARD W. STOWERS, JR.
                                                 ---------------------------
                                                     Richard W. Stowers, Jr.
                                                     President

                                             UNITED MEDICORP, INC.

                                             By: /s/ PETER W. SEAMAN
                                                 ---------------------------
                                                     Peter W. Seaman,
                                                     Chairman and Chief
                                                     Executive Officer

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