Document:

<PAGE>
                                                                    EXHIBIT 10.2

May 21, 2001

Peter Neupert
13121 NE 38/th/ Place
Bellevue, WA 98005

Dear Peter:

     On behalf of drugstore.com (the "Company"), we are pleased to confirm your
appointment to the position of Chairman of the Board effective April 26, 2001.
You will continue to be an employee of the Company, reporting directly to the
Company's Board of Directors. This letter supercedes and replaces the Employment
Offer letter between you and the Company dated June 29, 1998 (the "Original
Offer Letter").

     Your annual salary will be $125,000 and you will continue to be eligible
for the Company's standard employee benefits. Your salary will be paid bimonthly
in equal installments in accordance with the Company's standard payroll
policies. Your salary will be reviewed annually by the Company's Board of
Directors.

     You were granted a one-time right to purchase up to 1,260,000 shares of the
Company's Common Stock (the "Shares") at a purchase price of $.04 per share. The
Shares were, and will continue to be, subject to repurchase by the Company at
your original purchase price (the "Repurchase Right") within one year following
termination of your employment with the Company. Except as otherwise set forth
below, the Repurchase Right will lapse over the term of your employment: (i)
with respect to 1/4th of the Shares on the date of purchase; (ii) with respect
to the balance of the Shares, the repurchase right will lapse one (1) year after
your start date at the rate of 1/48th of the Shares per month at the close of
each month while you remain employed with the Company, over the remainder of the
four (4) year vesting term.

     If during your employment with the Company (i) there is a Change of Control
(as defined below), and (ii) you are not offered a position with similar
responsibilities (at the same or greater base salary and bonus potential) by the
surviving corporation, the Company's Repurchase Right will immediately lapse
with respect to all of the Shares. You agree that you will not consider your
responsibilities to be dissimilar solely because the acquiring company combines
and operates warehousing, distribution and other similar operations. "Change of
Control" shall mean the sale of all or substantially all of the assets of the
Company or the acquisition of the Company by another entity by means of
consolidation or merger after which the then current stockholders of the Company
hold less than 50% of the voting power of the surviving corporation; provided
that a reincorporation of the Company shall not be a Change of Control.

     All of us at the Company look forward to continuing a beneficial and
rewarding relationship. Nevertheless, your employment at drugstore.com may be
terminated by you or drugstore.com at any time for any reason with or without
cause or notice.

     Should you have any questions with regard to any of the items indicated
above, please call Alesia Pinney. Kindly indicate your consent to the terms
contained in this offer letter by signing and returning a copy to us by May 25,
2001.

Sincerely,

drugstore.com, inc.

Kal Raman
President and Chief Executive Officer

Agreed to and accepted:

_________________________                Date:  May __ 2001
Peter Neupert<PAGE>   1
                                                                   Exhibit 10.39

                               PURCHASE AGREEMENT

                           QWEST CAPITAL FUNDING, INC.

               $1,250,000,000 OF 5.875% Notes due August 3, 2004

                  $2,000,000,000 OF 7% NOTES DUE AUGUST 3, 2009

                $500,000,000 OF 7.625% Notes due August 3, 2021

                   UNCONDITIONALLY GUARANTEED AS TO PAYMENT OF
                   PRINCIPAL, PREMIUM, IF ANY, AND INTEREST BY

                     QWEST COMMUNICATIONS INTERNATIONAL INC.

                                                                   July 25, 2001

Lehman Brothers Inc.
3 World Financial Center
New York, NY 10285

MERRILL LYNCH & CO., INC.
Merrill Lynch, Pierce, Fenner & Smith
                     Incorporated
4 World Financial Center
New York, NY 10080

As Representatives of the several Initial Purchasers
named in Schedule I hereto

Ladies and Gentlemen:

         Qwest Capital Funding, Inc. (formerly known as U S WEST Capital
Funding, Inc.), a Colorado corporation (the "COMPANY"), proposes to issue and
sell to the several Initial Purchasers listed in Schedule I hereto (the "INITIAL
PURCHASERS") for whom Merrill Lynch, Pierce, Fenner & Smith Incorporated and
Lehman Brothers Inc. are acting as representatives (the "REPRESENTATIVES"),
$1,250,000,0000 of 5.875% Notes due August 3, 2004 (the "2004 NOTES"),
$2,000,000,0000 of 7% Notes due August 3, 2009 (the "2009 NOTES") and
$500,000,000 of 7.625% Notes due August 3, 2021 (the "2021 NOTES" together
with the 2004 Notes and the 2009 Notes, the "NOTES"). The Notes will be
unconditionally guaranteed as to payment of principal, premium, if any, and
interest (the "GUARANTEES" and together with the Notes, the "SECURITIES") by
Qwest Communications International Inc. (as successor to U S WEST, Inc. ("U S
WEST")), a Delaware corporation (the "GUARANTOR"), and will be issued pursuant
to the provisions of an Indenture, dated as of June 29, 1998, as amended by the
First Supplemental Indenture, dated as of June 30, 2000 (as so amended, the
"INDENTURE"), among the Company, the Guarantor and Bank One Trust Company,
National Association, as trustee (the "TRUSTEE").
<PAGE>   2
         The Securities will have the benefit of a Registration Rights
Agreement, dated as of July 30, 2001 (the "REGISTRATION RIGHTS AGREEMENT"),
among the Company, the Guarantor and the Initial Purchasers, pursuant to which
the Company and the Guarantor have agreed, for the benefit of the Initial
Purchasers and their respective direct and indirect transferees and assigns, to
register the Securities under the Securities Act of 1933, as amended (the
"SECURITIES ACT") subject to the terms and conditions therein specified.

         The sale of the Securities to the Initial Purchasers will be made
without registration of the Securities under the Securities Act, in reliance
upon exemptions therefrom.

         In connection with the sale of the Securities, the Company and the
Guarantor have prepared an offering memorandum dated July 25, 2001 (the
"OFFERING MEMORANDUM"), for the information of the Initial Purchasers and for
delivery to prospective purchasers of the Securities. The term Offering
Memorandum shall be deemed to mean and include documents incorporated by
reference therein. All references in this Agreement to financial statements and
schedules and other information which is "contained," "included," "stated" or
"given" in the Offering Memorandum (or other references of like import) shall be
deemed to mean and include all such financial statements and schedules and other
information which is incorporated by reference in the Offering Memorandum.

         The Company and the Guarantor hereby agree with the Initial Purchasers
as follows:

1. The Company agrees to issue and sell the Securities to the several Initial
Purchasers as hereinafter provided, and each Initial Purchaser, upon the basis
of the representations and warranties herein contained, but subject to the
conditions hereinafter stated, agrees to purchase, severally and not jointly,
from the Company the respective principal amount of 2004 Notes set forth
opposite such Initial Purchaser's name in Schedule I hereto at a price (the
"PURCHASE PRICE") equal to 99.570% of their principal amount, the principal
amount of 2009 Notes set forth opposite such Initial Purchaser's name in
Schedule I hereto at a Purchase Price equal to 98.702% of their principal amount
and the principal amount of 2021 Notes set forth opposite such Initial
Purchaser's name in Schedule I hereto at a Purchase Price equal to 98.083% of
their principal amount, plus in each case accrued interest, if any, from July
30, 2001 to the date of payment and delivery.

2. The Company and the Guarantor understand that the Initial Purchasers intend
(i) to offer privately pursuant to Rule 144A ("Rule 144A") and pursuant to
Regulation S ("Regulation S"), each under the Securities Act their respective
portions of the Securities as soon after this Agreement has become effective as
in the judgment of the Initial Purchasers is advisable and (ii) initially to
offer the Securities upon the terms set forth in the Offering Memorandum.

         Each of the Company and the Guarantor confirms that it has authorized
the Initial Purchasers, subject to the restrictions set forth below, to
distribute copies of the Offering Memorandum in connection with the offering of
the Securities. Each Initial Purchaser hereby severally makes to the Company and
the Guarantor the following representations and agreements:

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<PAGE>   3
                  (i) it is a "qualified institutional buyer" within the meaning
         of Rule 144A under the Securities Act; and

                  (ii) (A) it will not solicit offers for, or offer to sell, the
         Securities by any form of general solicitation or general advertising
         (as those terms are used in Regulation D under the Securities Act
         ("REGULATION D")) and (B) it will solicit offers for the Securities
         only from, and will offer the Securities only to, persons whom it
         reasonably believes to be (x) in the case of offers inside the United
         States, "qualified institutional buyers" within the meaning of Rule
         144A and (y) in the case of offers outside the United States, to
         persons other than U.S. persons, as defined under Regulation S
         ("FOREIGN PURCHASERS", which term shall include dealers or other
         professional fiduciaries in the United States acting on a discretionary
         basis for foreign beneficial owners (other than an estate or trust))
         that, in each case, in purchasing the Securities are deemed to have
         represented and agreed as provided in the Offering Memorandum;

With respect to offers and sales outside the United States, as described in
clause (ii)(B)(y) above, each Initial Purchaser hereby represents and agrees
with the Company and the Guarantor that:

                  (i) it understands that no action has been or will be taken by
         the Company or the Guarantor that would permit a public offering of the
         Securities, or possession or distribution of the Offering Memorandum or
         any other offering or publicity material relating to the Securities, in
         any country or jurisdiction where action for that purpose is required;

                  (ii) it will comply with all applicable laws and regulations
         in each jurisdiction in which it acquires, offers, sells or delivers
         Securities or has in its possession or distributes the Offering
         Memorandum or any such other material,

                  (iii) it understands that the Securities have not been and
         will not be registered under the Securities Act and may not be offered
         or sold within the United States or to, or for the account or benefit
         of, U.S. persons except in accordance with Regulation S or pursuant to
         an exemption from, or in a transaction not subject to, the registration
         requirements of the Securities Act;

                  (iv) it has offered the Securities and will offer and sell the
         Securities (x) as part of its distribution at any time and (y)
         otherwise until 40 days after the later of the commencement of the
         offering and the Closing Date (as defined in Section 3 below), only in
         accordance with Rule 903 of Regulation S. Accordingly, neither such
         Initial Purchaser, nor any of its Affiliates, as defined under
         Regulation S-X under the Securities Act, nor any persons acting on its
         behalf has engaged or will engage in any directed selling efforts
         (within the meaning of Regulation S) with respect to the Securities,
         and such Initial Purchaser, its Affiliates and any such persons have
         complied and will comply with the offering restrictions requirement of
         Regulation S;

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<PAGE>   4
                  (v) it agrees that (i) it has not offered or sold Securities
         and, prior to six months after the issue date of such Securities, will
         not offer or sell any such Securities to persons in the United Kingdom
         except to persons whose ordinary activities involve them in acquiring,
         holding, managing or disposing of investments (as principal or agent)
         for the purposes of their businesses or otherwise in circumstances
         which have not resulted and will not result in an offer to the public
         in the United Kingdom within the meaning of the Public Offers of
         Securities Regulations 1995, (ii) it has complied and will comply with
         all applicable provisions of the Financial Services Act 1986 with
         respect to anything done by it in relation to the Securities in, from
         or otherwise involving the United Kingdom, and (iii) it has only issued
         or passed on and will only issue or pass on in the United Kingdom any
         document received by it in connection with an issue of Securities to a
         person who is of a kind described in Article 11(3) of the Financial
         Services Act 1986 (Investment Advertisements)(Exemptions) Order 1996
         (as amended) or is a person to whom such document may otherwise
         lawfully be issued or passed on.

Terms used in this Section 2 and not otherwise defined in this Agreement have
the meanings given to them by Regulation S.

3. Payment for the Securities shall be made by wire transfer in immediately
available funds to the account specified by the Company to the Representatives
at 9:00 A.M., New York City time, on July 30, 2001, or at such other time on the
same or such other date, not later than the third Business Day thereafter, as
the Representatives and the Company may agree upon in writing. The time and date
of such payment are referred to herein as the "CLOSING DATE". As used herein,
the term "BUSINESS DAY" means any day other than a day on which banks are
permitted or required to be closed in New York City.

         Payment for the Securities shall be made against delivery with respect
to Securities to be resold to "qualified institutional buyers" by the Initial
Purchasers, to the nominee of The Depository Trust Company for the respective
accounts of the several Initial Purchasers of the Securities of one or more
global notes (collectively, "RESTRICTED GLOBAL NOTES") representing such
Securities and with respect to Securities to be resold to foreign purchasers by
the Initial Purchasers, to the nominee of The Depository Trust Company for the
respective accounts of the several Initial Purchasers of the Securities of one
or more Regulation S global notes (collectively, the "REGULATION S GLOBAL NOTES"
and, together with the Restricted Global Notes, the "GLOBAL NOTES") representing
such Securities, with any transfer taxes payable in connection with the transfer
to the Initial Purchasers of the Securities duly paid by the Company. The Global
Notes will be made available for inspection by the Initial Purchasers at the
office of Sidley Austin Brown & Wood LLP, One World Trade Center, New York, New
York 10048 not later than 1:00 P.M., New York City time, on the Business Day
prior to the Closing Date.

4. The Company and the Guarantor represent and warrant to each Initial Purchaser
that:

                  (a) the Offering Memorandum will not, in the form used by the
         Initial Purchasers to confirm sales of the Securities and as of the
         Closing Date, contain any untrue statement of a material fact or omit
         to state a material fact necessary in

                                       4
<PAGE>   5
         order to make the statements therein, in light of the circumstances
         existing at such dates, not misleading; provided, however, that this
         representation and warranty shall not apply to any statements or
         omissions made in reliance upon and in conformity with written
         information furnished to the Company or the Guarantor by any Initial
         Purchaser, or on behalf of any Initial Purchaser by the
         Representatives, specifically for use therein;

                  (b) the documents incorporated by reference in the Offering
         Memorandum (the "INCORPORATED DOCUMENTS"), when they were filed with
         the Securities and Exchange Commission (the "COMMISSION"), conformed in
         all material respects to the requirements of the Securities Exchange
         Act of 1934, as amended (the "EXCHANGE ACT"), and the rules and
         regulations of the Commission thereunder, and none of such documents
         contained an untrue statement of a material fact or omitted to state a
         material fact necessary to make the statements therein, in light of the
         circumstances under which they were made, not misleading; and any
         further documents so filed and incorporated by reference in the
         Offering Memorandum, when such documents are filed with the Commission,
         will conform in all material respects to the requirements of the
         Exchange Act, and will not contain an untrue statement of a material
         fact or omit to state a material fact necessary to make the statements
         therein, in light of the circumstances under which they were made, not
         misleading;

                  (c) the financial statements of U S WEST and the Guarantor,
         together with the related schedules and notes thereto, included and
         incorporated by reference in the Offering Memorandum present fairly the
         consolidated financial position of each such entity and its
         consolidated subsidiaries as of the dates indicated and the statement
         of operations, shareowners' equity and cash flows of each such entity
         and its consolidated subsidiaries for the periods specified; and said
         financial statements have been prepared in conformity with generally
         accepted accounting principles and practices applied on a consistent
         basis throughout the periods involved. The pro forma financial
         statements of the Guarantor and U S WEST and the related notes thereto
         included and incorporated by reference in the Offering Memorandum, to
         the best knowledge of the Company and the Guarantor, present fairly the
         information shown therein, have been prepared in accordance with the
         Commission's rules and guidelines with respect to the pro forma
         financial statements and have been properly compiled on the bases
         described therein and the assumptions used therein, and the assumptions
         used in the preparation thereof are reasonable and the adjustments used
         therein are appropriate to give effect to the transactions and
         circumstances referred to therein;

                  (d) since the respective dates as of which information is
         given in the Offering Memorandum, except as otherwise stated therein,
         (A) there has been no material adverse change in the financial
         condition or results of operations of the Company or of the Guarantor
         and its subsidiaries, taken as a whole (a "MATERIAL ADVERSE EFFECT"),
         (B) there have been no transactions entered into by the Company or by
         the Guarantor or any of its subsidiaries, other than those in the
         ordinary course of business, which are material with respect to the
         Company or the

                                       5
<PAGE>   6
         Guarantor and its subsidiaries, taken as a whole, and (C) there has
         been no dividend or distribution of any kind declared, paid or made by
         the Company or the Guarantor on any class of its capital stock, except
         for regular quarterly dividends on the Guarantor's common stock in
         amounts that are consistent with past practice;

                  (e) this Agreement has been duly authorized, executed and
         delivered by each of the Company and the Guarantor;

                  (f) the Indenture has been duly authorized, executed and
         delivered by each of the Company and the Guarantor and (assuming the
         due authorization, execution and delivery by the Trustee) constitutes
         the legal, valid and binding agreement of the Company and the Guarantor
         enforceable against each of them in accordance with its terms, except
         as the enforcement thereof may be limited by bankruptcy, insolvency
         (including, without limitation, all laws relating to fraudulent
         transfers), reorganization, moratorium or similar laws affecting
         enforcement of creditors' rights generally and except as enforcement
         thereof is subject to general principles of equity (regardless of
         whether enforcement is considered in a proceeding in equity or at law);

                  (g) the Registration Rights Agreement has been duly authorized
         by the Company and the Guarantor and, when executed and delivered by
         the Company and the Guarantor, will constitute a valid and binding
         agreement of each of the Company and the Guarantor, enforceable against
         the Company and the Guarantor in accordance with its terms, except as
         the enforcement thereof may be limited by bankruptcy, insolvency
         (including, without limitation, all laws relating to fraudulent
         transfers), reorganization, moratorium or similar laws affecting
         enforcement of creditors' rights generally and except as enforcement
         thereof is subject to general principles of equity (regardless of
         whether enforcement is considered in a proceeding in equity or at law),
         and except that enforcement of rights to indemnification and
         contribution contained therein may be limited by applicable Federal or
         state laws or the public policy underlying such laws;

                  (h) the Securities have been duly authorized and, at the
         Closing Date, will have been duly executed by the Company and, when
         authenticated, issued and delivered in the manner provided for in the
         Indenture and delivered against payment of the purchase price therefor
         as provided in this Agreement, will constitute legal, valid and binding
         obligations of the Company, enforceable against the Company in
         accordance with their terms, except as the enforcement thereof may be
         limited by bankruptcy, insolvency (including, without limitation, all
         laws relating to fraudulent transfers), reorganization, moratorium or
         similar laws affecting enforcement of creditors' rights generally and
         except as enforcement thereof is subject to general principles of
         equity (regardless of whether enforcement is considered in a proceeding
         in equity or at law), and will be in the form contemplated by, and
         entitled to the benefits of, the Indenture;

                  (i) the Guarantees have been duly authorized and, at the
         Closing Date, will have been duly executed by the Guarantor and, when
         issued and delivered in

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         the manner provided for in the Indenture, will constitute legal, valid
         and binding obligations of the Guarantor, enforceable against the
         Guarantor in accordance with their terms, except as the enforcement
         thereof may be limited by bankruptcy, insolvency (including, without
         limitation, all laws relating to fraudulent transfers), reorganization,
         moratorium or similar laws affecting enforcement of creditors' rights
         generally and except as enforcement thereof is subject to general
         principles of equity (regardless of whether enforcement is considered
         in a proceeding in equity or at law), and will be in the form
         contemplated by, and entitled to the benefits of, the Indenture;

                  (j) the Exchange Notes (as defined in the Registration Rights
         Agreement) have been duly authorized and, when authenticated, issued
         and delivered in the manner provided for in the Indenture and issued
         and delivered in exchange for the Notes in the manner contemplated in
         the Registration Rights Agreement, will constitute valid and binding
         obligations of the Company, enforceable against the Company in
         accordance with their terms, except as the enforcement thereof may be
         limited by bankruptcy, insolvency (including, without limitation, all
         laws relating to fraudulent transfers), reorganization, moratorium or
         similar laws affecting enforcement of creditors' rights generally and
         except as enforcement thereof is subject to general principles of
         equity (regardless of whether enforcement is considered in a proceeding
         in equity or at law), and will be in the form contemplated by, and
         entitled to the benefits of, the Indenture;

                  (k) the Exchange Guarantees (as defined in the Registration
         Rights Agreement) have been duly authorized and, when authenticated,
         issued and delivered in the manner provided for in the Indenture and
         issued and delivered in the manner contemplated in the Registration
         Rights Agreement, will constitute valid and binding obligations of the
         Guarantor, enforceable against the Guarantor in accordance with their
         terms, except as the enforcement thereof may be limited by bankruptcy,
         insolvency (including, without limitation, all laws relating to
         fraudulent transfers), reorganization, moratorium or similar laws
         affecting enforcement of creditors' rights generally and except as
         enforcement thereof is subject to general principles of equity
         (regardless of whether enforcement is considered in a proceeding in
         equity or at law, and will be in the form contemplated by, and entitled
         to the benefit of the Indenture);

                  (l) as of the Closing Date, the Securities, the Exchange
         Notes, the Exchange Guarantees, the Indenture and the Registration
         Rights Agreement will conform in all material respects to the
         respective statements relating thereto contained in the Offering
         Memorandum;

                  (m) the execution, delivery and performance of this Agreement
         and the Registration Rights Agreement and the consummation of the
         transactions contemplated herein and therein (including, without
         limitation, the issuance and sale of the Securities) and compliance by
         the Company and the Guarantor with their respective obligations
         hereunder and thereunder have been duly authorized by all necessary
         corporate action and do not and will not, whether with or without the

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<PAGE>   8
         giving of notice or passage of time or both, conflict with or
         constitute a breach of, or default or Repayment Event (as defined
         below) under, or result in the creation or imposition of any lien,
         charge or encumbrance upon any property or assets of the Company, the
         Guarantor or any subsidiary of the Guarantor pursuant to, any contract,
         indenture, mortgage, deed of trust, loan or credit agreement, note,
         lease or other agreement or instrument to which the Company, the
         Guarantor or any subsidiary of the Guarantor is a party or by which it
         or any of them may be bound, or to which any of the property or assets
         of the Company, the Guarantor or any subsidiary of the Guarantor is
         subject (collectively, "AGREEMENTS AND INSTRUMENTS") (except for such
         conflicts, breaches or defaults or liens, charges or encumbrances that
         would not result in a Material Adverse Effect), nor will such action
         result in any violation of the provisions of the charter or bylaws of
         the Company, the Guarantor or any subsidiary of the Guarantor or, to
         the best knowledge of the Company and the Guarantor, any applicable
         law, statute, rule, regulation, judgment, order, writ or decree of any
         government, government instrumentality or court, domestic or foreign,
         having jurisdiction over the Company, the Guarantor or any subsidiary
         of the Guarantor or any of their assets, properties or operations. As
         used herein, a "REPAYMENT EVENT" means any event or condition which
         gives the holder of any note, debenture or other evidence of
         indebtedness of the Company, the Guarantor or any subsidiary of the
         Guarantor (or any person acting on such holder's behalf) the right to
         require the repurchase, redemption or repayment of all or a portion of
         such indebtedness by the Company, the Guarantor or any subsidiary of
         the Guarantor;

                  (n) other than as set forth in the Offering Memorandum, there
         is not pending or, to the knowledge of the Company or the Guarantor,
         threatened, any action, suit, proceeding, inquiry or investigation to
         which the Company, the Guarantor or any subsidiary of the Guarantor is
         a party or to which the assets, properties or operations of the
         Company, the Guarantor or any subsidiary of the Guarantor is subject,
         before or by any court or governmental agency or body, domestic or
         foreign, which might reasonably be expected to result in a Material
         Adverse Effect or which might reasonably be expected to materially and
         adversely affect the assets, properties or operations of the Company,
         the Guarantor and any subsidiary of the Guarantor, taken as a whole, or
         the consummation of the transactions contemplated by this Agreement or
         the Indenture or the performance by the Company or the Guarantor of
         their respective obligations thereunder;

                  (o) the Guarantor and its subsidiaries possess such permits,
         licenses, approvals, consents and other authorizations (collectively,
         "GOVERNMENTAL LICENSES") issued by the appropriate federal, state,
         local or foreign regulatory agencies or bodies necessary to conduct the
         business now operated by them; the Guarantor and its subsidiaries are
         in compliance with the terms and conditions of all such Governmental
         Licenses, except where the failure so to comply would not, singly or in
         the aggregate, have a Material Adverse Effect; all of the Governmental
         Licenses are valid and in full force and effect, except when the
         invalidity of such Governmental Licenses or the failure of such
         Governmental Licenses to be in full force and effect would not have a
         Material Adverse Effect; and neither the

                                       8
<PAGE>   9
         Guarantor nor any of its subsidiaries has received any notice of
         proceedings relating to the revocation or modification of any such
         Governmental Licenses which, singly or in the aggregate, if the subject
         of an unfavorable decision, ruling or finding, would result in a
         Material Adverse Effect;

                  (p) none of the Company, the Guarantor or any of their
         respective affiliates (as defined in Rule 501(b) of Regulation D) has
         directly, or through any agent, sold, offered for sale, solicited
         offers to buy or otherwise negotiated in respect of, any security (as
         defined in the Securities Act) which is or will be integrated with the
         sale of the Securities in a manner that would require the registration
         under the Securities Act of the offering contemplated by the Offering
         Memorandum;

                  (q) none of the Company, the Guarantor, any affiliate (as
         defined in Rule 501(b) of Regulation D) of the Company or the Guarantor
         or any person acting on its or their behalf has offered or sold the
         Securities by means of any general solicitation or general advertising
         within the meaning of Rule 502(c) under the Securities Act, or by means
         of any directed selling efforts within the meaning of Rule 902 of
         Regulation S, and the Company, the Guarantor, any affiliate of the
         Company and the Guarantor and any person acting on its or their behalf
         has complied with and will implement the "offering restrictions"
         requirements of Regulation S;

                  (r) the Securities satisfy the requirements set forth in Rule
         144A(d)(3) under the Securities Act;

                  (s) assuming the accuracy of the representations of the
         Initial Purchasers contained in Section 2 hereof, it is not necessary
         in connection with the offer, sale and delivery of the Securities in
         the manner contemplated by this Agreement to register the Securities
         under the Securities Act or to qualify the Indenture under the Trust
         Indenture Act of 1939, as amended (the "TRUST INDENTURE ACT"); and

                  (t) none of the transactions contemplated by this Agreement
         (including, without limitation, the use of the proceeds from the sale
         of the Securities) will violate or result in a violation of Section 7
         of the Exchange Act, or any regulation promulgated thereunder,
         including, without limitation, Regulations T, U, and X of the Board of
         Governors of the Federal Reserve System.

5. The Company and the Guarantor covenant and agree with each of the several
Initial Purchasers as follows:

                  (a) to deliver to the Initial Purchasers as many copies of the
         Offering Memorandum (including all amendments and supplements thereto)
         as the Initial Purchasers may reasonably request;

                  (b) before distributing any amendment or supplement to the
         Offering Memorandum, to furnish to the Representatives a copy of the
         proposed amendment

                                       9
<PAGE>   10
         or supplement for review and not to distribute any such proposed
         amendment or supplement to which the Representatives reasonably object;

                  (c) if, at any time prior to the earlier of (i) 9 months from
         the date of the Offering Memorandum and (ii) notice by the
         Representatives to the Company and the Guarantor of the completion of
         the initial placement of the Securities, any event shall occur as a
         result of which the Offering Memorandum as then amended or supplemented
         would include an untrue statement of a material fact, or omit to state
         any material fact necessary to make the statements therein, in the
         light of the circumstances under which they were made, not misleading,
         or if it is necessary to amend or supplement the Offering Memorandum to
         comply with law, forthwith to prepare and furnish, at the expense of
         the Company, to the Initial Purchasers and to the dealers (whose names
         and addresses the Representatives will furnish to the Company) to which
         Securities may have been sold by the Initial Purchasers on behalf of
         the Initial Purchasers and to any other dealers upon request, such
         amendments or supplements to the Offering Memorandum as may be
         necessary to correct such statement or omission or to effect compliance
         with law;

                  (d) to endeavor to qualify the Securities for offer and sale
         under the securities or Blue Sky laws of such jurisdictions as the
         Representatives shall reasonably request and to continue such
         qualification in effect so long as reasonably required for distribution
         of the Securities; provided that the Company shall not be required to
         file a general consent to service of process in any jurisdiction;

                  (e) during the period of two years after the date hereof, to
         furnish to the Initial Purchasers, as soon as practicable after the end
         of each fiscal year, a copy of the Guarantor's annual report to
         shareholders, if any, for such year, and to furnish to the Initial
         Purchasers and to counsel to the Initial Purchasers, (i) as soon as
         available, a copy of each report of the Guarantor filed with the
         Commission under the Exchange Act or mailed to stockholders, and (ii)
         from time to time, such other information concerning the Guarantor or
         the Company as the Initial Purchasers may reasonably request;

                  (f) during the period beginning on the date hereof and
         continuing to and including the Business Day following the Closing
         Date, not to, directly or indirectly, sell, offer to sell, grant any
         option for the sale of, or otherwise dispose of, any of its senior debt
         securities having a maturity of one year or more without the prior
         written consent of the Representatives;

                  (g) to use the net proceeds received by the Company from the
         sale of the Securities pursuant to this Agreement in the manner
         specified in the Offering Memorandum under the caption "Use of
         Proceeds";

                  (h) to furnish to the holders of the Securities no later than
         90 days after the end of each fiscal year an annual report (including a
         balance sheet and statements of income, stockholders' equity and cash
         flows of the Guarantor and its

                                       10
<PAGE>   11
         consolidated subsidiaries certified by independent public accountants)
         and, as soon as practicable after the end of each of the first three
         quarters of each fiscal year (beginning with the fiscal quarter ending
         after the date of the Offering Memorandum), consolidated summary
         financial information of the Guarantor and its subsidiaries of such
         quarter in reasonable detail;

                  (i) during the period of two years after the Closing Date, the
         Company and the Guarantor will not, and will not permit any of their
         respective controlled "affiliates" (as defined in Rule 144 under the
         Securities Act) to, resell any of the Securities which constitute
         "restricted securities" under Rule 144 that have been reacquired by any
         of them;

                  (j) whether or not the transactions contemplated by this
         Agreement are consummated or this Agreement is terminated, to pay or
         cause to be paid all costs and expenses incident to the performance of
         its obligations hereunder and under the Registration Rights Agreement,
         including without limiting the generality of the foregoing, all fees,
         costs and expenses (i) incident to the preparation, issuance,
         execution, authentication and delivery of the Securities, including any
         expenses of the Trustee, (ii) incident to the preparation, printing and
         distribution of the Offering Memorandum (including all exhibits,
         amendments and supplements thereto), (iii) incurred in connection with
         the registration or qualification and determination of eligibility for
         investment of the Securities under the laws of such jurisdictions as
         the Representatives may designate (including reasonable fees of counsel
         for the Initial Purchasers and their disbursements) and the printing of
         memoranda relating thereto, (iv) in connection with the approval for
         trading of the Securities on any securities exchange or inter-dealer
         quotation system, if so requested, (v) in connection with the printing
         (including word processing and duplication costs) and delivery of this
         Agreement, the Indenture, any Preliminary and Supplemental Blue Sky
         Memoranda and any Legal Investment Survey and the furnishing to Initial
         Purchasers and dealers of copies of the Offering Memorandum, including
         mailing and shipping, as herein provided, (vi) payable to rating
         agencies in connection with the rating of the Securities, if
         applicable, and (vii) any expenses incurred by the Company in
         connection with a "road show" presentation to potential investors;

                  (k) while the Securities remain outstanding and are
         "restricted securities" within the meaning of Rule 144(a)(3) and cannot
         be sold without restriction under Rule 144(k) under the Securities Act,
         the Company and the Guarantor will, during any period in which the
         Guarantor is not subject to Section 13 or 15(d) under the Exchange Act
         or is not complying with the reporting requirements thereof, make
         available to the purchasers and any holder of Securities in connection
         with any sale thereof and any prospective purchaser of Securities and
         securities analysts, in each case upon request, the information
         specified in, and meeting the requirements of, Rule 144A(d)(4) under
         the Securities Act (or any successor thereto);

                                       11
<PAGE>   12
                  (l) neither the Company nor the Guarantor will take any action
         prohibited by Regulation M under the Exchange Act, in connection with
         the distribution of the Securities contemplated hereby;

                  (m) none of the Company, the Guarantor, any of their
         respective affiliates (as defined in Rule 501(b) of Regulation D under
         the Securities Act) or any person acting on behalf of the Company, the
         Guarantor or such affiliate will solicit any offer to buy or offer or
         sell the Securities by means of any form of general solicitation or
         general advertising, including: (i) any advertisement, article, notice
         or other communication published in any newspaper, magazine or similar
         medium or broadcast over television or radio; and (ii) any seminar or
         meeting whose attendees have been invited by any general solicitation
         or general advertising; and

                  (n) none of the Company, the Guarantor, any of their
         respective affiliates (as defined in Rule 144(a)(1) under the
         Securities Act) or any person acting on behalf of any of the foregoing
         will engage in any directed selling efforts with respect to the
         Securities within the meaning of Regulation S; and

                  (o) none of the Company, the Guarantor, any of their
         respective affiliates (as defined in Regulation 501(b) of Regulation D
         under the Securities Act) or any person acting on behalf of the
         Company, the Guarantor or such affiliate will sell, offer for sale or
         solicit offers to buy or otherwise negotiate in respect of any security
         (as defined in the Securities Act) which will be integrated with the
         sale of the Securities in a manner which would require the registration
         under the Securities Act of the Securities and the Company and the
         Guarantor will take all action that is appropriate or necessary to
         assure that its offerings of other securities will not be integrated
         for purposes of the Securities Act with the offering contemplated
         hereby.

6. The several obligations of the Initial Purchasers hereunder to purchase the
Securities on the Closing Date are subject to the performance by the Company and
the Guarantor of their respective obligations hereunder and to the following
additional conditions:

                  (a) the representations and warranties of the Company and the
         Guarantor contained herein are true and correct on and as of the
         Closing Date as if made on and as of the Closing Date, the statements
         of the officers of the Company and the Guarantor made pursuant to
         Section 6(e) hereof are true and correct and the Company and the
         Guarantor shall have complied with all agreements and all conditions on
         their part to be performed or satisfied hereunder at or prior to the
         Closing Date;

                  (b) except as previously disclosed to the Initial Purchasers
         by the Company or the Guarantor in writing prior to the execution of
         this Agreement, there shall not have occurred any downgrading, nor
         shall any notice have been given of (i) any downgrading, (ii) any
         intended or potential downgrading or (iii)

                                       12
<PAGE>   13
         any review or possible change that does not indicate an improvement, in
         the rating accorded any debt securities of or guaranteed by the Company
         or the Guarantor by any "nationally recognized statistical rating
         organization", as such term is defined for purposes of Rule 436(g)(2)
         under the Securities Act;

                  (c) since the respective dates as of which information is
         given in the Offering Memorandum, there shall not have been any change
         in the financial condition of the Company or of the Guarantor and its
         subsidiaries, taken as a whole, or in the earnings, affairs or business
         prospects of the Company or of the Guarantor and its subsidiaries,
         taken as a whole, otherwise than as set forth or contemplated in the
         Offering Memorandum as of July 25 2001, the effect of which is, in the
         judgment of the Representatives, so material and adverse as to make it
         impracticable or inadvisable to proceed with the offering or the
         delivery of the Securities on the Closing Date on the terms and in the
         manner contemplated in the Offering Memorandum;

                  (d) the Representatives shall have received on and as of the
         Closing Date a certificate of the President, any Vice President, the
         Treasurer, any Assistant Treasurer or the Associate General Counsel of
         the Company in which such officers shall state that, to the best of
         their knowledge after reasonable investigation, the representations and
         warranties of the Company in this Agreement are true and correct as if
         made at and as of the Closing Date, that the Company has complied in
         all material respects with all agreements and satisfied all conditions
         on its part to be performed or satisfied hereunder at or prior to the
         Closing Date and that, since the respective dates as of which
         information is given in the Offering Memorandum, there has been no
         material adverse change in the financial condition or results of
         operations of the Company, or, to the best knowledge of the Company, of
         the Guarantor, and its subsidiaries, taken as a whole, except as set
         forth in or contemplated by the Offering Memorandum as of July 25,
         2001;

                  (e) the Representatives shall have received on and as of the
         Closing Date a certificate of the Chief Executive Officer, the
         President, any Vice President, the Treasurer, any Assistant Treasurer,
         or the Associate General Counsel of the Guarantor in which such
         officers shall state that, to the best of their knowledge after
         reasonable investigation, the representations and warranties of the
         Guarantor in this Agreement are true and correct as if made at and as
         of the Closing Date, that the Guarantor has complied in all material
         respects with all agreements and satisfied all conditions on its part
         to be performed or satisfied hereunder at or prior to the Closing Date
         and that, since the respective dates as of which information is given
         in the Offering Memorandum, there has been no material adverse change
         in the financial condition or results of operations of the Guarantor
         and its subsidiaries, taken as a whole, except as set forth in or
         contemplated by the Offering Memorandum;

                  (f) Holme Roberts & Owen LLP shall have furnished to the
         Initial Purchasers their written opinion, dated the Closing Date, in
         form and substance satisfactory to the Initial Purchasers, to the
         effect that:

                                       13
<PAGE>   14
                           (i) The Company is a corporation duly incorporated,
                  and is validly existing and in good standing under the laws of
                  the State of Colorado, with corporate power to own, lease and
                  operate its properties and to carry on its business as now
                  being conducted.

                           (ii) The execution, delivery and performance of this
                  Agreement have been duly authorized by all necessary corporate
                  action on the part of the Company, and this Agreement has been
                  duly executed and delivered by the Company.

                           (iii) The execution, delivery and performance of the
                  Indenture has been duly authorized by all necessary corporate
                  action on the part of the Company, and the Indenture has been
                  duly executed and delivered by the Company.

                           (iv) The Registration Rights Agreement has been duly
                  authorized by all necessary corporate action on the part of
                  the Company, and the Registration Rights Agreement has been
                  duly executed and delivered by the Company.

                           (v) The Notes have been duly authorized by all
                  necessary corporate action on the part of the Company.

                           (vi) The Exchange Notes (as defined in the
                  Registration Rights Agreement) have been duly authorized by
                  all necessary corporate action on the part of the Company.

                  In rendering such opinion, such counsel may rely as to matters
         of fact, to the extent such counsel deems proper, on certificates of
         responsible officers of the Company and of public officials

                  The opinion of Holme Roberts & Owen LLP described above shall
         be rendered to the Initial Purchasers at the request of the Company and
         shall so state therein.

                  (g) O'Melveny & Myers LLP shall have furnished to the Initial
         Purchasers their written opinion, dated the Closing Date, in form and
         substance satisfactory to the Initial Purchasers, to the effect that:

                           (i) The Guarantor is a corporation duly incorporated,
                  and is validly existing in good standing under the laws of the
                  State of Delaware, with corporate power to own, lease and
                  operate its properties and to carry on its business as
                  described in the Offering Memorandum.

                           (ii) The execution, delivery and performance of the
                  Indenture have been duly authorized by all necessary corporate
                  action on the part of the Guarantor, and the Indenture has
                  been duly executed and delivered by the Guarantor.

                                       14
<PAGE>   15
                           (iii) The execution, delivery and performance of this
                  Agreement and the Registration Rights Agreement have been duly
                  authorized by all necessary corporate action on the part of
                  the Guarantor, and this Agreement and the Registration Rights
                  Agreement have been duly executed and delivered by the
                  Guarantor.

                           (iv) The Indenture constitutes the legally valid and
                  binding obligation of each of the Company and the Guarantor,
                  enforceable against each of the Company and the Guarantor in
                  accordance with its terms, except as may be limited by
                  bankruptcy, insolvency, reorganization, moratorium or similar
                  laws relating to or affecting creditor's rights generally
                  (including, without limitation, fraudulent conveyance laws)
                  and by general principles of equity, including, without
                  limitation, concepts of materiality, reasonableness, good
                  faith and fair dealing and the possible unavailability of
                  specific performance or injunctive relief, regardless of
                  whether considered in a proceeding in equity or at law.

                           (v) The Notes, when duly executed and authenticated
                  in the manner contemplated by the Indenture and issued and
                  delivered to the Initial Purchasers against payment therefor
                  in accordance with the provisions hereof, will be legally
                  valid and binding obligations of the Company entitled to the
                  benefits of the Indenture, enforceable against the Company in
                  accordance with their terms, except as may be limited by
                  bankruptcy, insolvency, reorganization, moratorium or similar
                  laws relating to or affecting creditor's rights generally
                  (including, without limitation, fraudulent conveyance laws),
                  and by general principles of equity including, without
                  limitation, concepts of materiality, reasonableness, good
                  faith and fair dealing and the possible unavailability of
                  specific performance or injunctive relief, regardless of
                  whether considered in a proceeding in equity or at law.

                           (vi) The Guarantees have been duly authorized by all
                  necessary corporate action on the part of the Guarantor and
                  when duly executed in the manner contemplated by the Indenture
                  and issued and delivered to the Initial Purchasers in
                  accordance with the provisions hereof, will be legally valid
                  and binding obligations of the Guarantor, enforceable against
                  the Guarantor in accordance with their terms, except as may be
                  limited by bankruptcy, insolvency, reorganization, moratorium
                  or similar laws relating to or affecting creditor's rights
                  generally (including, without limitation, fraudulent
                  conveyance laws), and by general principles of equity
                  including, without limitation, concepts of materiality,
                  reasonableness, good faith and fair dealing and the possible
                  unavailability of specific performance or injunctive relief,
                  regardless of whether considered in a proceeding in equity or
                  at law.

                           (vii) The Exchange Notes, when duly executed in the
                  manner contemplated in the Indenture and issued and delivered
                  in exchange for the

                                       15
<PAGE>   16
                  Notes in the manner contemplated in the Registration Rights
                  Agreement, will be legally valid and binding obligations of
                  the Company, enforceable against the Company in accordance
                  with their terms, except as may be limited by bankruptcy,
                  insolvency, reorganization, moratorium or similar laws
                  relating to affecting creditors rights generally (including,
                  without limitation, fraudulent conveyance laws), and by
                  general principles of equity including, without limitation,
                  concepts of materiality, reasonableness, good faith and fair
                  dealing and the possible unavailability of specific
                  performance or injunctive relief, regardless of whether
                  considered in a proceeding in equity or at law.

                           (viii) The Exchange Guarantees (as defined in the
                  Registration Rights Agreement) have been duly authorized by
                  all necessary corporate action on the part of the Guarantor
                  and when duly executed in the manner contemplated in the
                  Indenture and issued and delivered in the manner contemplated
                  in the Registration Rights Agreement, will be legally valid
                  and binding obligations of the Guarantor, enforceable against
                  the Guarantor in accordance with their terms, except as may be
                  limited by bankruptcy, insolvency, reorganization, moratorium
                  or similar laws relating to or effecting creditors rights
                  generally (including, without limitation, fraudulent
                  conveyance laws), and by general principles of equity
                  including, without limitation, concepts of materiality,
                  reasonableness, good faith and fair dealing and the possible
                  unavailability of specific performance or injunctive relief,
                  regardless of whether considered in a proceeding in equity or
                  at law.

                           (ix) The Registration Rights Agreement constitutes
                  the legally valid and binding obligation of the Company and
                  the Guarantor, enforceable against the Company and the
                  Guarantor in accordance with its terms, except as may be
                  limited by bankruptcy, insolvency, reorganization, moratorium
                  or similar laws relating to or affecting creditor's rights
                  generally (including, without limitation, fraudulent
                  conveyance laws) and by general principles of equity,
                  including, without limitation, concepts of materiality,
                  reasonableness, good faith and fair dealing and the possible
                  unavailability of specific performance or injunctive relief,
                  regardless of whether considered in a proceeding in equity or
                  at law, and except that no opinion is expressed with respect
                  to the provisions contained in Section 4 of the Registration
                  Rights Agreement.

                           (x) No order, consent, permit or approval of or
                  filing with any federal governmental authority is required on
                  the part of the Company or the Guarantor for the execution and
                  delivery of this Agreement, the Indenture or the issuance and
                  sale of the Securities to the Initial Purchasers pursuant to
                  the terms of this Agreement, except such as may be required
                  under applicable blue sky or state securities laws.

                           (xi) The statements in the Offering Memorandum under
                  the headings "Description of Notes", "Exchange Offer;
                  Registration Rights" and "Notice

                                       16
<PAGE>   17
                  to Investors", insofar as they summarize provisions of the
                  Indenture or the Securities or constitute a summary of certain
                  provisions of the documents referred to therein, fairly
                  summarize the matters referred to therein.

                           (xii) The Notes satisfy the requirement set forth in
                  Rule 144A(d)(3) under the Securities Act.

                           (xiii) Based upon the representations, warranties and
                  agreements of the Company and the Guarantor in Sections 4(p),
                  4(q), 4(r), 5(m), 5(n), 5(o) and 6(a) of this Agreement and of
                  the Initial Purchasers in Section 2 of this Agreement and on
                  the truth and accuracy of the representations and agreements
                  deemed to be made by the purchasers of the Securities
                  contained in the Offering Memorandum, it is not necessary in
                  connection with the offer, sale and delivery of the Securities
                  to the Initial Purchasers under this Agreement or in
                  connection with the initial resale of such Securities by the
                  Initial Purchasers in accordance with Section 2 of this
                  Agreement to register the Securities under the Securities Act
                  or to qualify the Indenture under the Trust Indenture Act;
                  provided, however, that such counsel need not express any
                  opinion with respect to the conditions under which the
                  Securities may be further resold.

                           (xiv) The documents incorporated by reference in the
                  Offering Memorandum, on the respective dates they were filed,
                  appeared on their face to comply in all material respects with
                  the requirements as to form for reports on Form 10-K, Form
                  10-Q and Form 8-K, as the case may be, under the Exchange Act,
                  as amended, and Form S-4 under the Securities Act, and the
                  related rules and regulations in effect at the respective
                  dates of their filings, except that such counsel need express
                  no opinion concerning the financial statements and other
                  financial information contained or incorporated by reference
                  therein.

                  In rendering such opinion, such counsel may rely as to matters
         of fact, to the extent such counsel deems proper, on certificates of
         responsible officers of the Company and the Guarantor and of public
         officials. Such counsel may also rely as to matters of Colorado law
         upon the opinion of Holme Roberts & Owen LLP without independent
         verification. Such counsel need express no opinion as to matters
         relating to the Federal Communications Commission or any state public
         utilities commission or similar authority for the Company or the
         Guarantor, as applicable.

                  In addition, such counsel may state that in connection with
         such counsel's participation in conferences in connection with the
         preparation of the Offering Memorandum, such counsel has not
         independently verified the accuracy, completeness or fairness of the
         statements contained or incorporated therein, and the limitations
         inherent in the examination made by such counsel and the knowledge
         available to such counsel are such that such counsel is unable to
         assume, and does not assume, any responsibility for such accuracy,
         completeness

                                       17
<PAGE>   18
         or fairness (except as otherwise specifically stated in paragraph (xii)
         above). However, such counsel shall state that on the basis of such
         counsel's review of the Offering Memorandum and the documents
         incorporated by reference therein and their participation in
         conferences in connection with the preparation of the Offering
         Memorandum, such counsel does not believe that the Offering Memorandum
         and the documents incorporated therein, considered as a whole, as of
         its issue date or on the date of the opinion, contained any untrue
         statement of a material fact or omitted to state a material fact
         necessary in order to make the statements therein, in light of the
         circumstances under which they were made, not misleading. However, such
         counsel need express no opinion or belief as to the financial
         statements and other financial information contained or incorporated by
         reference in the Offering Memorandum or in the documents incorporated
         therein by reference.

                  Such opinion may state that it does not address the impact on
         the opinions contained therein of any litigation or ruling relating to
         the divestiture by American Telephone and Telegraph Company of
         ownership of its operating telephone companies (the "DIVESTITURE").

                  The opinion of O'Melveny & Myers LLP described above shall be
         rendered to the Initial Purchasers at the request of the Company and
         shall so state therein.

                  (h) Yash A. Rana, Esq., Associate General Counsel for the
         Company and the Guarantor shall have furnished to the Initial
         Purchasers his written opinion, dated the Closing Date, in form and
         substance satisfactory to the Initial Purchasers, to the effect that:

                           (i) The execution, delivery and performance of this
                  Agreement and the Registration Rights Agreement have been duly
                  authorized by all necessary corporate action on the part of
                  the Guarantor, and this Agreement has been duly executed and
                  delivered by the Guarantor.

                           (ii) All state regulatory consents, approvals,
                  authorizations or other orders (except as to the state
                  securities or blue sky laws, as to which such counsel need
                  express no opinion) legally required for the execution of the
                  Indenture and the issuance and sale of the Securities to the
                  Initial Purchasers pursuant to the terms of this Agreement
                  have been obtained; provided that such counsel may rely on
                  opinions of local counsel satisfactory to such counsel.

                           (iii) To such counsel's knowledge, there is not
                  pending or threatened any action, suit, proceeding, inquiry or
                  investigation to which the Company, the Guarantor or any
                  subsidiary of the Guarantor is a party or to which the assets,
                  properties or operations of the Company, the Guarantor or any
                  subsidiary of the Guarantor is subject, before or by any court
                  or governmental agency or body, domestic or foreign, which (a)
                  might reasonably be expected to result in a Material Adverse
                  Effect, or (b) might reasonably be expected to materially and
                  adversely affect the consummation

                                       18
<PAGE>   19
                  by the Company or the Guarantor of the transactions
                  contemplated by this Agreement, the Registration Rights
                  Agreement or the Securities or the Indenture or the
                  performance by the Company or the Guarantor of their
                  respective obligations hereunder or thereunder.

                           (iv) The execution, delivery and performance of this
                  Agreement and the Registration Rights Agreement by the Company
                  and the Guarantor will not (A) violate the charter or bylaws
                  of the Company or the Guarantor, or (B) violate, breach or
                  result in a default under any material contract, indenture,
                  mortgage, loan agreement, note, lease or other material
                  agreement known to such counsel to which the Company or
                  Guarantor is a party or to which any of their respective
                  properties or assets are subject; provided that such counsel
                  need express no opinion as to the effect of the Company's or
                  Guarantor's performance of its obligations under this
                  Agreement or the Registration Rights Agreement on the
                  compliance by the Company or the Guarantor with financial
                  covenants in any such contract, indenture, mortgage, loan
                  agreement, note, lease or other agreement.

                           (v) To such counsel's knowledge, neither the Company,
                  the Guarantor nor any of its subsidiaries is in violation of
                  its charter or bylaws.

                  Such counsel may state that is does not address the impact of
         the opinions contained therein on any litigation or ruling relating to
         the Divestiture. Such counsel need express no opinion with respect to
         matters relating to the Federal Communications Commission or state
         public utilities commissions for the Company or the Guarantor, as
         applicable.

                  (i) Hogan & Hartson L.L.P. shall have furnished to the Initial
         Purchasers their written opinion, dated the Closing Date, in form and
         substance satisfactory to the Initial Purchasers, to the effect that no
         consent, approval, authorization or other action by, or filing or
         registration with, any federal or state government authority is
         required in connection with the execution and delivery by the Company
         or the Guarantor of this Agreement or the issuance and sale of the
         Securities to the Initial Purchasers pursuant to the terms of this
         Agreement.

                  (j) on the date of the issuance of the Offering Memorandum and
         also on the Closing Date, Arthur Andersen LLP shall have furnished to
         the Initial Purchasers letters, dated the respective dates of delivery
         thereof, in form and substance satisfactory to the Representatives,
         containing statements and information of the type customarily included
         in accountants "comfort letters" to underwriters with respect to the
         financial statements and certain financial information contained in the
         Offering Memorandum;

                  (k) the Initial Purchasers shall have received on and as of
         the Closing Date an opinion of Sidley Austin Brown & Wood LLP, counsel
         to the Initial Purchasers, with respect to the validity of the
         Indenture and the Securities, and such other related matters as the
         Initial Purchasers may reasonably request, and such

                                       19
<PAGE>   20
         counsel shall have received such papers and information as they may
         reasonably request to enable them to pass upon such matters;

                  (l) the Initial Purchasers shall have received prior to the
         Closing Date a copy of the Registration Rights Agreement, in the form
         and substance satisfactory to the Initial Purchasers, duly executed by
         the Company and the Guarantor, and the Registration Rights Agreement
         shall be in full force and effect at the Closing Date; and

                  (m) on or prior to the Closing Date the Company shall have
         furnished to the Initial Purchasers such further certificates and
         documents as the Initial Purchasers shall reasonably request.

7. (a) The Company and the Guarantor jointly and severally agree to indemnify
and hold harmless each Initial Purchaser against any losses, claims, damages or
liabilities, joint or several, to which such Initial Purchaser may become
subject, as incurred, under the Securities Act, the Exchange Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon any untrue statement or alleged untrue
statement of any material fact contained in the Offering Memorandum or any
amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and will reimburse
each Initial Purchaser, as incurred, for any legal or other expenses reasonably
incurred by such Initial Purchaser in connection with investigating or defending
any such loss, claim, damage, liability or action or amounts paid in settlement
of any litigation or investigation or proceeding related thereto if such
settlement is effected with the written consent of the Company and the
Guarantor; provided, however, that the Company and the Guarantor will not be
liable in any such case to the extent that any such loss, claim, damage or
liability arises out of or is based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in any of such documents in
reliance upon and in conformity with written information furnished to the
Company or the Guarantor by any Initial Purchaser, or on behalf of any Initial
Purchaser by the Representatives, specifically for use therein.

   (b) Each Initial Purchaser will indemnify and hold harmless the Company and
the Guarantor against any losses, claims, damages or liabilities to which the
Company or the Guarantor may become subject, as incurred, under the Securities
Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions in respect thereof) arise out of or are based upon any untrue statement
or alleged untrue statement of any material fact contained in the Offering
Memorandum or any amendment or supplement thereto, or arise out of or are based
upon the omission or the alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading, in
each case to the extent, but only to the extent, that such untrue statement or
alleged untrue statement or omission or alleged omission was made in reliance
upon and in conformity with written information furnished to the Company or the
Guarantor by such Initial Purchaser, or on behalf of such Initial Purchaser by
the Representatives, specifically for use therein, and will reimburse the

                                       20
<PAGE>   21
Company and the Guarantor, as incurred, for any legal or other expenses
reasonably incurred by the Company and the Guarantor in connection with
investigating or defending any such loss, claim, damage, liability or action.

         (c) Promptly after receipt by an indemnified party under this Section 7
of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against the indemnifying party under this
Section 7, notify the indemnifying party of the commencement thereof; but the
omission so to notify the indemnifying party will not relieve it from any
liability which it may have to any indemnified party otherwise than under this
Section 7. In case any such action is brought against any indemnified party, and
it notifies the indemnifying party of the commencement thereof, the indemnifying
party will be entitled to participate therein and, to the extent that it may
wish, jointly with any other indemnifying party similarly notified, to assume
the defense thereof, with counsel satisfactory to such indemnified party (who
shall not, except with the consent of the indemnified party, be counsel to the
indemnifying party), and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such indemnified party under this
Section 7 for any legal or other expenses subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable
costs of investigation. The indemnifying party or parties shall not be liable
under this Agreement with respect to any settlement made by any indemnified
party or parties without prior written consent by the indemnifying party or
parties to such settlement.

         (d) If the indemnification provided for in this Section 7 is
unavailable or insufficient to hold harmless an indemnified party under
subsection (a) or (b) above, then each indemnifying party shall contribute to
the amount paid or payable by such indemnified party as a result of the losses,
claims, damages or liabilities referred to in subsection (a) or (b) above, (i)
in such proportion as is appropriate to reflect the relative benefits received
by the Company and the Guarantor on the one hand and the Initial Purchasers on
the other from the offering of the Securities or (ii) if the allocation provided
by clause (i) above is not permitted by applicable law, in such proportion as is
appropriate to reflect not only the relative benefits referred to in clause (i)
above but also the relative fault of the Company and the Guarantor on the one
hand and the Initial Purchasers on the other in connection with the statements
or omissions which resulted in such losses, claims, damages or liabilities as
well as any other relevant equitable considerations. The relative benefits
received by the Company and the Guarantor on the one hand and the Initial
Purchasers on the other shall be deemed to be in the same proportion as the
total net proceeds from the offering (before deducting expenses) received by the
Company bear to the total discounts and commissions received by the Initial
Purchasers. The relative fault 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 or the Initial Purchasers and the
parties' relative intent, knowledge, access to information and opportunity to
correct or prevent such untrue statement or omission. The amount paid by an
indemnified party as a result of the losses, claims, damages or liabilities
referred to in the first sentence of this subsection (d) shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified
party in connection with investigating

                                       21
<PAGE>   22
or defending any action or claim which is the subject of this subsection (d).
Notwithstanding the provisions of this subsection (d), no Initial Purchaser
shall be required to contribute any amount in excess of the amount by which the
total price at which the Securities purchased by it were offered exceeds the
amount of any damages which such Initial Purchaser has otherwise been required
to pay by reason of such untrue or alleged untrue statement or omission or
alleged omission. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) shall be entitled to
contribution from any person who was not guilty of such fraudulent
misrepresentation. The Initial Purchasers' obligations in this subsection (d) to
contribute are several in proportion to the respective principal amount of the
Securities set forth opposite their names in Schedule I hereto, and not joint.

         (e) The obligations of the Company and the Guarantor under this Section
7 shall be in addition to any liability which the Company or the Guarantor may
otherwise have and shall extend, upon the same terms and conditions, to each
person, if any, who controls any Initial Purchaser within the meaning of the
Securities Act or the Exchange Act; and the obligations of the Initial
Purchasers under this Section 7 shall be in addition to any liability which the
respective Initial Purchasers may otherwise have and shall extend, upon the same
terms and conditions, to each person, if any, who controls the Company or the
Guarantor within the meaning of the Securities Act or the Exchange Act.

         The indemnity and contribution agreements contained in this Section 7
and the representations and warranties of the Company set forth in this
Agreement shall remain operative and in full force and effect regardless of (i)
any termination of this Agreement, (ii) any investigation made by or on behalf
of any Initial Purchaser or any person controlling any Initial Purchaser or by
or on behalf of the Company or the Guarantor or any person controlling the
Company or the Guarantor and (iii) acceptance of and payment for any of the
Securities.

8. Notwithstanding anything herein contained, this Agreement may be terminated
in the absolute discretion of the Initial Purchasers, by notice given to the
Company and the Guarantor, if after the execution and delivery of this Agreement
and prior to the Closing Date (i) trading generally shall have been suspended or
materially limited on or by, as the case may be, any of the New York Stock
Exchange, the American Stock Exchange, the Nasdaq National Market, the Chicago
Board Options Exchange, the Chicago Mercantile Exchange or the Chicago Board of
Trade, (ii) trading of any securities of or guaranteed by the Company or the
Guarantor shall have been suspended on any exchange or in any over-the-counter
market, (iii) a general moratorium on commercial banking activities in New York
shall have been declared by either Federal or New York State authorities, or
(iv) there shall have occurred any outbreak or escalation of hostilities or any
change in financial markets or any calamity or crisis that, in the judgment of
the Initial Purchasers, is material and adverse and which, in the judgment of
the Initial Purchasers, makes it impracticable to market the Securities on the
terms and in the manner contemplated in the Offering Memorandum.

9. This Agreement shall become effective upon the execution and delivery hereof
by the parties hereto.

                                       22
<PAGE>   23
10. If, on the Closing Date any one or more of the Initial Purchasers shall fail
or refuse to purchase Securities which it or they have agreed to purchase
hereunder on such date, and the aggregate principal amount of Securities which
such defaulting Initial Purchaser or Initial Purchasers agreed but failed or
refused to purchase is not more than one-tenth of the aggregate principal amount
of the Securities to be purchased on such date, the other Initial Purchasers
shall be obligated severally in the proportions that the principal amount of
Securities set forth opposite their respective names in Schedule I bears to the
aggregate principal amount of Securities set forth opposite the names of all
such non-defaulting Initial Purchasers, or in such other proportions as the
Initial Purchasers may specify, to purchase the Securities which such defaulting
Initial Purchaser or Initial Purchasers agreed but failed or refused to purchase
on such date; provided that in no event shall the principal amount of Securities
that any Initial Purchaser has agreed to purchase pursuant to Section 1 be
increased pursuant to this Section 10 by an amount in excess of one-tenth of
such principal amount of Securities without the written consent of such Initial
Purchaser. If, on the Closing Date any Initial Purchaser or Initial Purchasers
shall fail or refuse to purchase Securities which it or they have agreed to
purchase hereunder on such date, and the aggregate principal amount of
Securities with respect to which such default occurs is more than one-tenth of
the aggregate principal amount of Securities to be purchased on such date, and
arrangements satisfactory to the Initial Purchasers, the Company and the
Guarantor for the purchase of such Securities are not made within 36 hours after
such default, this Agreement shall terminate without liability on the part of
any non-defaulting Initial Purchaser, the Company or the Guarantor. In any such
case either the Initial Purchasers, the Company or the Guarantor shall have the
right to postpone the Closing Date, but in no event for longer than seven days,
in order that the required changes, if any, in the Offering Memorandum or in any
other documents or arrangements may be effected. Any action taken under this
paragraph shall not relieve any defaulting Initial Purchaser from liability in
respect of any default of such Initial Purchaser under this Agreement.

11. If this Agreement shall be terminated by the Initial Purchasers, or any of
them, because of any failure or refusal on the part of the Company or the
Guarantor to comply with the terms or to fulfill any of the conditions of this
Agreement, or if for any reason the Company or the Guarantor shall be unable to
perform its obligations under this Agreement or any condition of the Initial
Purchasers' obligations cannot be fulfilled, (i) the Company and the Guarantor
shall remain responsible for the expenses to be paid or reimbursed by them
pursuant to Section 5(j) and (ii) except in the event this Agreement is
terminated pursuant to clauses (i), (iii) or (iv) of Section 8, the Company and
the Guarantor agree to reimburse the Initial Purchasers or such Initial
Purchasers as have so terminated this Agreement with respect to themselves,
severally, for the out-of-pocket expenses reasonably incurred by such Initial
Purchasers in connection with this Agreement or the offering contemplated
hereunder, not exceeding $75,000, and for the fees and disbursements of their
counsel.

12. This Agreement shall inure to the benefit of and be binding upon the
Company, the Guarantor, the Initial Purchasers, any controlling persons referred
to herein and their respective successors and assigns. Nothing expressed or
mentioned in this Agreement is intended or shall be construed to give any other
person, firm or corporation any legal or equitable right, remedy or claim under
or in respect of this Agreement or any provision

                                       23
<PAGE>   24
herein contained. No purchaser of Securities from any Initial Purchaser shall be
deemed to be a successor by reason merely of such purchase.

13. All notices and other communications hereunder shall be in writing and shall
be deemed to have been duly given if mailed or transmitted by any standard form
of telecommunication. Notices to the Initial Purchasers shall be given to the
Initial Purchasers c/o Merrill Lynch, Pierce, Fenner & Smith Incorporated, 4
World Financial Center, New York, New York 10080; Attention: Syndicate Desk and
Lehman Brothers Inc., 3 World Financial Center, New York, New York 10285
(telefax: (212) 516-1553); Attention: Debt Capital Markets. Notices to the
Company and the Guarantor shall be given to each of them at 1801 California
Street, Denver, Colorado 80202 (telefax: (303) 896-6468); Attention: Scott
Berman, with a copy to General Counsel (telefax: (303) 296-5974).

14. This Agreement may be signed in counterparts, each of which shall be an
original and all of which together shall constitute one and the same instrument.

15. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICTS OF LAWS
PROVISIONS THEREOF.

                                       24
<PAGE>   25
         If the foregoing is in accordance with your understanding, please sign
and return counterparts hereof.

                                      Very truly yours,

                                      QWEST CAPITAL FUNDING, INC.

                                      By:____________________________________
                                           Name:
                                           Title:
                                      QWEST COMMUNICATIONS INTERNATIONAL INC.

                                      By:____________________________________
                                           Name:
                                           Title:

Accepted: July 25, 2001

LEHMAN BROTHERS INC.
MERRILL LYNCH & CO., INC.
MERRILL LYNCH, PIERCE, FENNER & SMITH
         INCORPORATED

By: LEHMAN BROTHERS INC.

By:_______________________________
     Name:
     Title:

By: MERRILL LYNCH, PIERCE, FENNER & SMITH
         INCORPORATED

By:_______________________________
     Name:
     Title:

For themselves and as Representatives of the
other Initial Purchasers named in Schedule I
hereto.

                                       25

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