Document:

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                                                                    EXHIBIT 10.3

                          NEXTLINK COMMUNICATIONS, INC.
            CHANGE OF CONTROL RETENTION BONUS AND SEVERANCE PAY PLAN

    1. General Statement of Purpose. The Board of Directors (the "Board") of
NEXTLINK Communications, Inc. (the "Company") has considered the effect that a
change of control of the Company may have on key employees of the Company and
its subsidiaries. Given the level of acquisition and change of control activity
in today's business environment, the Board recognizes and understands the
concerns such employees have for their careers. The possible occurrence of a
change-of-control transaction may cause key employees to consider major career
changes in an effort to assure financial security for themselves and their
families. The Company desires to assure fair treatment of its key employees in
the event of a change of control and to allow them to make critical career
decisions without undue time pressure and financial uncertainty, thereby
increasing their willingness to remain with the Company notwithstanding the
outcome of a possible change-of-control transaction.

    The Company recognizes that the possibility of a change of control exists
and desires to assure itself of both the present and future continuity of
management, desires to establish certain retention and severance benefits for
certain of its Covered Employees (as defined below) applicable in a change of
control, and wishes to insure that its Covered Employees are not practically
disabled from discharging their duties in respect of a proposed or actual
transaction involving a change of control.

    2. Effective and Termination Dates. The Plan shall be effective as of
February 16, 2000 (the "Effective Date"). The Plan will automatically terminate
when all benefits payable hereunder have been paid.

    3. Definitions. Where the following words and phrases appear in the Plan,
they shall have the respective meanings set forth below:

    (a) "Base Salary" means, with respect to each Covered Employee, the annual
base salary, exclusive of any bonus, special pay (including any retention pay)
or other benefits he or she may receive, but without giving effect to any salary
reductions authorized by the Covered Employee under any qualified or
non-qualified deferred compensation plan of an Employer, in effect (i) on the
date immediately preceding the date of the relevant Change of Control or (ii) on
the date of the Covered Employee's termination of employment with his or her
Employer, whichever is the highest.

    (b) "Cause" shall mean with respect to any Covered Employee:

        (i) conviction of a felony involving an intentional act of fraud,
    embezzlement or theft in connection with his employment with an Employer;

        (ii) intentional wrongful damage to property, contractual interests or
    business relationships of an Employer;

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        (iii)  intentional wrongful disclosure of secret processes or
    confidential information of an Employer in violation of any agreement with
    or policy of the Employer; or

        (iv)   conduct contrary to an Employer's announced policies or practices
    (including those contained in the Corporation's Employee Handbook) where
    either:

               (A) the nature and/or severity of the conduct or its consequences
               typically would have resulted in immediate termination based on
               the Corporation's established employee termination or
               disciplinary practices in place before the Reference Date (as
               defined in Section 3(h)(i) below); or

               (B) the Covered Employee has been provided with written notice
               detailing the relevant policy or practice and the nature of the
               objectionable conduct or other violation and within 20 business
               days of the receipt of such notice the Covered Employee has not
               remedied the violation or ceased to engage in the objectionable
               conduct.

For purposes of the Plan, no act or failure to act on the part of the Covered
Employee shall be deemed "intentional" if it was due primarily to an error in
judgment or negligence, but shall be deemed "intentional" only if done or
omitted to be done by the Covered Employee not in good faith and without
reasonable belief that his action or omission was in the best interest of his or
her Employer. Nothing herein will limit the right of the Covered Employee or his
beneficiaries to contest the validity or propriety of any such determination.

    (c) "Change of Control" shall mean the occurrence of any of the following
events:

        (A)     The Company is merged or consolidated or reorganized into or
                with another company or other legal entity, other than a merger
                or consolidation or reorganization into or with an entity that
                is an affiliate of Craig O. McCaw, and as a result of such
                merger, consolidation or reorganization less than a majority of
                the combined voting power of the then-outstanding securities of
                such company or person immediately after such transaction is
                held directly or indirectly in the aggregate by the holders of
                voting securities of the Company immediately prior to such sale
                or transfer, including voting securities issuable upon exercise
                or conversion of options, warrants or other securities or
                rights;

        (B)     The Company sells or otherwise transfers all or substantially
                all of its assets to any other company or other legal entity,
                other than such a sale or transfer to a company or legal entity
                that is an affiliate of Craig O. McCaw, and as a result of such
                sale or other transfer of assets, less than a majority of the
                combined voting power of the then-outstanding securities of such
                company or person immediately after such sale or transfer is
                held directly or indirectly in the aggregate by the holders of
                voting securities of the Company immediately prior to such sale
                or transfer, including voting securities issuable upon exercise
                or conversion of options, warrants or other securities or
                rights;

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        (C)     There is a report filed on Schedule 13D or Schedule 14D-1 (or
                any successor schedule, form or report), each as promulgated
                pursuant to the Securities Exchange Act of 1934, as amended (the
                "Exchange Act"), disclosing that any person (as the term
                "person" is used in Section 13(d)(3) or Section 14(d)(2) of the
                Exchange Act) other than Craig O. McCaw and his affiliates has
                become the beneficial owner (as the term "beneficial owner" is
                defined under Rule 13d-3 or any successor rule or regulation
                promulgated under the Exchange Act) of securities representing
                50% or more of the voting securities of the Company, including
                voting securities issuable upon exercise or conversion of
                options, warrants or other securities or rights;

        (D)     The Company files a report or proxy statement with the
                Securities and Exchange Commission pursuant to the Exchange Act
                disclosing in response to Form 8-K or Schedule 14A (or any
                successor schedule, form or report or item therein) that a
                change in control of the Company has occurred;

        (E)     Notwithstanding the foregoing provisions of subparagraphs (C)
                and (D) hereof, a "Change of Control" shall not be deemed to
                have occurred solely because (x) the Company, (y) an entity in
                which the Company directly or indirectly beneficially owns 50%
                or more of the voting securities, or (z) any Company-sponsored
                employee stock ownership plan or other employee benefit plan of
                the Company, either files or becomes obligated to file a report
                or proxy statement under or in response to Schedule 13D,
                Schedule 14D-1, Form 8-K or Schedule 14A (or any successor
                schedule, form or report or item therein) under the Exchange
                Act, disclosing beneficial ownership by it of voting securities,
                whether in excess of 50% or otherwise, or because the Company
                reports that a change of control of the Company has or may have
                occurred or will or may occur in the future by reason of such
                beneficial ownership;

        (F)     Notwithstanding the foregoing provisions of subparagraphs (A)
                through (D) above, no Change of Control shall result from a
                merger, consolidation or reorganization of the Company with any
                entity in which Eagle River Investments, L.L.C. has invested at
                least $10,000,000 in equity prior to such merger, consolidation
                or reorganization.

    (d) "Code" means the Internal Revenue Code of 1986, as amended, or any
successor thereto.

    (e) "Covered Employee" means any individual recognized by an Employer as a
regular full-time employee of an Employer who is subject to U.S. income tax
withholding to whom the Plan applies pursuant to Section 4(a) below.

    (f) "Employee Benefits" means, with respect to any Covered Employee, all
life insurance, medical insurance (including dental and vision care) and
disability plans and programs in which the Covered Employee was entitled to
participate immediately prior to the relevant Change of Control.

    (g) "Employer" means the Company, each of its wholly owned subsidiaries and
limited liability companies, any other subsidiary of the Company to which the
Plan has been extended by the Board (or by the Compensation Committee of the
Board) and which has adopted the Plan, and, as applicable, each such entity's
successor.

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    (h) "Good Reason" means, with respect to any Covered Employee:

        (i) any significant and adverse change in the Covered Employee's duties,
    responsibilities and authority, as compared in each case to the
    corresponding circumstances in place on the date immediately preceding the
    first occurrence of a Change of Control after the Effective Date (the
    "Reference Date"); or

        (ii) a relocation of the principal work location at which the Covered
    Employee is based on the Reference Date to a location more than 30 miles
    away from such location; or

        (iii) a reduction in Base Salary or bonus potential not agreed to by the
    Covered Employee, or any other significant adverse financial consequences
    associated with the Covered Employee's employment in comparison to the
    corresponding circumstances in place on the Reference Date; or

        (iv) a breach by any Employer of its obligations under any agreement to
    which such Employer and the Covered Employee are parties, that remains
    uncured after 20 business days following such Employer's receipt of a
    written notice from the Covered Employee specifying the particulars in
    reasonable detail.

Any good faith determination by the Covered Employee that "Good Reason" exists
will be presumptively correct for purposes of this Plan.

    (i)  "Plan" means the NEXTLINK Communications, Inc. Change of Control
Retention Bonus and Severance Pay Plan.

    (j) "Retention Bonus" means the Retention Bonus described in Section 4(b).

    (k) "Severance Compensation" means Severance Pay and other benefits provided
by Section 5(a) and (b).

    (l) "Severance Pay" means the amounts payable as set forth in Section 5(a)
and (b).

    (m) "Severance Period" means the period of time commencing on the date of
the first occurrence of a Change of Control and continuing until the earlier of
(i) the first anniversary of such date or (ii) the Covered Employee's death.

    (n) "Target Bonus" means the amount obtained by multiplying the Covered
Employee's target bonus percentage as established and in effect for the Covered
Employee (i) on the Reference Date, or (ii) on the date of the Covered
Employee's termination of employment with his or her Employer, whichever is the
highest, by the Covered Employee's Base Salary.

    4. Eligibility; Termination Following a Change of Control.

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    (a) Subject to the limitations described below, the Plan applies to all
individuals who are recognized by an Employer as regular full-time salaried
employees in any of the following salary grade levels (as determined on February
16, 2000, and adjusting as appropriate for any changes to the Company's system
of classifying employees by salary grade level implemented subsequent to such
date): EX3, EX2, EX1, E8 and E7, who are employed by an Employer on or after the
date that (x) the Company enters into a definitive agreement providing for a
Change of Control, (y) a third party publicly announces a bona fide intention to
commence a tender offer for outstanding voting securities of the Company or
otherwise to take actions that are reasonably designed and expected to result in
a Change of Control or (z) a Change of Control otherwise occurs (the date
described in the foregoing clauses (x), (y) or (z), as appropriate, the "Trigger
Date").

    (b) Subject to the last sentence of this Section 4(b), in the event of a
Change of Control, a Covered Employee shall be entitled to receive a Retention
Bonus in the amount described on Exhibit A for such Covered Employee. The
Retention Bonus shall be payable in two installments. The first installment
shall be paid on the effective date of any Change of Control. The second
installment shall be paid on the first anniversary of the relevant Change of
Control. Notwithstanding the foregoing, if a Covered Employee's employment is
terminated by an Employer after the occurrence of a Trigger Date, and a Change
of Control occurs prior to the first anniversary of such Trigger Date, then if
such termination is without Cause and before the full amount of the Retention
Bonus is paid to the Covered Employee, the Covered Employee shall be paid the
entire remaining portion of the Retention Bonus in full on the later of (x) the
effective date of the Change of Control or (y) the date of such termination of
employment. If a majority of the members of the Board in office on the date
immediately preceding the relevant Trigger Date (or a majority of the members of
the Compensation Committee thereof on such date) should determine (after
consultation with the Company's independent auditors) that the grant of any
right to receive a Retention Bonus pursuant to this Section 4(b) would prevent
the relevant proposed merger or other business combination transaction
contemplated to constitute a Change of Control (and intended by the Company and
the other party or parties thereto to be accounted for as a pooling of
interests) from meeting all criteria required for pooling of interests
accounting treatment, then such Board members (or members of the Compensation
Committee thereof) shall be authorized to modify the amount or any of the other
terms otherwise applicable to any Covered Employee's Retention Bonus, or the
group of Covered Employees entitled to receive any such Retention Bonus, but in
each case only to the extent determined to be necessary to permit such relevant
transaction to be accounted for as a pooling of interests.

    (c) A Covered Employee will be entitled to the Severance Compensation
described in Section 5 if (i) the Covered Employee's employment is terminated by
an Employer during the Severance Period and such termination is without Cause
and is not described in Subsection (e) of this Section, or (ii) in the case of
each Covered Employee as to whom Exhibit B indicates that this Section 4(c)(ii)
applies to such Covered Employee, the Covered Employee voluntarily terminates
his employment with his Employer during the Severance Period for Good Reason.

    (d) A termination of employment described in Subsection (c) of this Section
will not affect any rights that the Covered Employee may have pursuant to any
agreement, policy, plan, program or arrangement of the Company or any other
Employer providing Employee Benefits, which rights shall

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be governed by the terms thereof, except that any severance benefits provided
thereunder shall be reduced to the extent of the Severance Compensation actually
provided to such Covered Employee under and pursuant to this Plan.

    (e) Notwithstanding the preceding provisions of this Section, a Covered
Employee will not be entitled to Severance Compensation if his employment with
an Employer is terminated during the Severance Period for Cause or because:

        (i)    of the Covered Employee's retirement or voluntary withdrawal from
    employment, other than as described in Subsection (c)(ii) or Subsection
    (c)(iii) of this Section;

        (ii)   of the Covered Employee's death;

        (iii)  the Covered Employee becomes permanently disabled within the
    meaning of, and begins actually to receive disability benefits pursuant to,
    the long-term disability plan in effect for, or applicable to, the Covered
    Employee;

        (iv)   of the Covered Employee's failure to return to work after a
    temporary lay-off; or

        (v)    of the Covered Employee's withdrawal or loss of employment due to
    personal leave, other than as described in Subsection (c)(ii) or Subsection
    (c)(iii) of this Section.

    5.  Severance Compensation.

    (a) If a Covered Employee's employment is terminated in circumstances that
entitle the Covered Employee to Severance Compensation pursuant to Section 4(c),
the Company will pay to the Covered Employee as Severance Pay in a single lump
sum payment the amounts described on Exhibit C on the payroll date of the next
full payroll cycle after the termination date, and will continue to provide to
the Covered Employee the Employee Benefits for the period set forth on Exhibit
C.

    (b) Without limiting the rights of a Covered Employee at law or in equity,
if the Company fails to make any payment or provide any benefit required to be
made or provided hereunder on a timely basis, the Company will pay interest on
the amount or value thereof at an annualized rate of interest equal to the
so-called composite "prime rate" as quoted from time to time during the relevant
period in the Eastern Edition of The Wall Street Journal plus the lesser of 5%
or the maximum rate of interest allowed by law. Such interest will be payable as
it accrues on demand. Any change in such prime rate or maximum rate will be
effective on and as of the date of such change.

    (c) Notwithstanding any provision of the Plan to the contrary, the rights
and obligations under this Section and under Section 8 will survive any
termination or expiration of the Plan.

    (d) Anything in this Plan to the contrary notwithstanding, but subject to
the last sentence of this Section 5(d), in the event that it shall be determined
that any payment or distribution of cash or other compensation or benefit by the
Company or any of its affiliates to or for the benefit of any Covered

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Employee, whether paid or payable or distributed or distributable pursuant to
the terms of this Plan or otherwise pursuant to or by reason of any other
agreement, policy, plan, program or arrangement (a "Payment"), would be subject
to the excise tax imposed by Section 4999 of the Code (or any successor
provision thereto), by reason of being considered "contingent on a change in
ownership or control" of the Company, within the meaning of Section 280G of the
Code (or any successor provision thereto) or to any similar tax imposed by state
or local law, or any interest or penalties with respect to such tax (such tax or
taxes, together with any such interest and penalties, being hereafter
collectively referred to as the "Excise Tax"), then the Covered Employee will be
entitled to receive from the Company an additional payment or payments
(collectively, a "Gross-Up Payment"). The Gross-Up Payment will be in an amount
such that, after payment by the Covered Employee of all taxes (including any
interest or penalties imposed with respect to such taxes), including any Excise
Tax imposed upon the Gross-Up Payment, the Covered Employee retains an amount of
the Gross-Up Payment equal to the Excise Tax imposed on the Payment. The
Gross-Up Payment shall be paid to the Covered Employee prior to the date on
which any Payment part or all of which is subject to the Excise Tax is made to
the Covered Employee. The Covered Employee shall cooperate in all reasonable
respects with the Company (but at the Company's sole cost and expense) to
attempt to minimize any such tax liability (such cooperation not to include
foregoing or deferring any payments or benefits to which he or she is otherwise
entitled), and if the Covered Employee later receives a refund of any part of
the Excise Tax, such Covered Employee shall promptly after receipt of such
refund pay back to the Company so much of the Gross-Up Payment as is required to
avoid a windfall. If a majority of the members of the Board in office on the day
immediately preceding the relevant Trigger Date (or a majority of the members of
the Compensation Committee thereof on such date) should determine (after
consultation with the Company's independent auditors) that the grant of any
right to receive a Gross-Up Payment pursuant to this Section 5(d) would prevent
the relevant proposed merger or other business combination transaction
contemplated to constitute a Change of Control (and intended by the Company and
the other party or parties thereto to be accounted for as a pooling of
interests) from meeting all criteria required for pooling of interests
accounting treatment, then such Board members (or members of the Compensation
Committee thereof) shall be authorized to modify the amount of or any of the
other terms otherwise applicable to any Covered Employees's right to receive a
Gross-Up Payment, but in each case only to the extent determined to be necessary
to permit such relevant transaction to be accounted for as a pooling of
interests.

    6. No Mitigation Obligation. The Company hereby acknowledges that it will be
difficult for a Covered Employee to find reasonably comparable employment
following his termination of employment with his Employer. Accordingly, the
provision of Severance Compensation by the Company to a Covered Employee in
accordance with the terms of the Plan is hereby acknowledged by the Company to
be reasonable, and a Covered Employee will not be required to mitigate the
amount of any payment provided for in the Plan by seeking other employment or
otherwise, nor will any profits, income, earnings or other benefits from any
source whatsoever create any mitigation, offset, reduction or any other
obligation on the part of a Covered Employee hereunder or otherwise, except as
expressly provided in Section 4(b).

    7. Certain Payments Not Considered for Other Benefits, etc. Payments of
Severance Pay will not be included as earnings for the purpose of calculating
contributions or benefits under any Employee Benefit plan of the Company or of
any other Employer. Such payments and payments of

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Severance Pay will not be made from any benefit plan funds, and shall constitute
an unfunded, unsecured obligation of the Company.

    8. Arbitration. Any controversy or claim arising out of or relating to this
Plan or the breach thereof, shall be settled by arbitration in the Washington,
D.C. area in accordance with the laws of the State of Delaware by three
arbitrators, one of whom shall be appointed by the Company, one by the Covered
Employee and the third of whom shall be appointed by the first two arbitrators.
If the first two arbitrators cannot agree on the appointment of a third
arbitrator, then the third arbitrator shall be appointed by the Chief Judge of
the United States District Court for the Eastern District of Virginia. The
arbitration shall be conducted in accordance with the rules of the American
Arbitration Association, except with respect to the selection of arbitrators,
which shall be as provided in this Section 8. Judgment upon the award rendered
by the arbitrators may be entered in any court having jurisdiction thereof.

    9. Employment Rights. Nothing expressed or implied in the Plan shall create
any right or duty on the part of an Employer or a Covered Employee to have the
Covered Employee remain in the employment of an Employer at any time prior to or
following a Change of Control.

    10. Withholding of Taxes. The Company may withhold from any amounts payable
under the Plan all federal, state, city or other taxes as shall be required
pursuant to any law or government regulation or ruling.

    11.  Successors and Binding Effect.

    (a) The Company shall require any successor (including without limitation
any persons acquiring directly or indirectly all or substantially all of the
business and/or assets of the Company whether by purchase, merger,
consolidation, reorganization or otherwise, and such successor shall be deemed
the Company for the purposes of the Plan) to assume and agree to perform the
obligations under the Plan in the same manner and to the same extent the Company
would be required to perform if no such succession had taken place. The Plan
shall be binding upon and inure to the benefit of the Company and any successor
to the Company, but shall not otherwise be assignable, transferable or delegable
by the Company.

    (b) The rights under the Plan shall inure to the benefit of and be
enforceable by each Covered Employee's personal or legal representatives,
executors, administrators, successors, heirs, distributees and/or legatees.

    (c) The rights under the Plan are personal in nature and neither the Company
nor any Covered Employee shall, without the consent of the other, assign,
transfer or delegate the Plan or any rights or obligations hereunder except as
expressly provided in this Section 11. Without limiting the generality of the
foregoing, a Covered Employee's right to receive payments hereunder shall not be
assignable, transferable or delegable, whether by pledge, creation of a security
interest or otherwise, other than by a transfer by his or her will or by the
laws of descent and distribution and, in the event of any attempted assignment
or transfer contrary to this Section, the Company shall have no liability to pay
any amount so attempted to be assigned, transferred or delegated.

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    (d) The obligation of the Company to make payments and/or provide benefits
hereunder shall represent an unsecured obligation of the Company.

    (e) The Company recognizes that each Covered Employee will have no adequate
remedy at law for breach by the Company of any of the agreements contained
herein and, in the event of any such breach, the Company hereby agrees and
consents that each Covered Employee shall be entitled to a decree of specific
performance, mandamus or other appropriate remedy to enforce performance of
obligations of the Company under the Plan.

    12. Governing Law. The validity, interpretation, construction and
performance of the Plan shall be governed by the laws of the State of Delaware,
without giving effect to the principles of conflict of laws of such State.

    13. Validity. If any provisions of the Plan or the application of any
provision hereof to any person or circumstance is held invalid, unenforceable or
otherwise illegal, the remainder of the Plan and the application of such
provision to any other person or circumstances shall not be affected, and the
provision so held to be invalid, unenforceable or otherwise illegal shall be
reformed to the extent (and only to the extent) necessary to make it
enforceable, valid and legal.

    14. Captions. The captions in the Plan are for convenience of reference only
and do not define, limit or describe the scope or intent of the Plan or any part
hereof and shall not be considered in any construction hereof.

    15. Construction. The masculine gender, where appearing in the Plan, shall
be deemed to include the feminine gender and the singular shall be deemed to
include the plural, unless the context clearly indicates to the contrary.

    16. Administration of the Plan.

    (a) In General: The Plan shall be administered by the Company, which shall
be the named fiduciary under the Plan.

    (b) Delegation of Duties: The Company may delegate any of its administrative
duties, including, without limitation, duties with respect to the processing,
review, investigation, approval and payment of any Retention Bonus or Severance
Pay to a named administrator or administrators.

    (c) Regulations: The Company shall promulgate any rules and regulations it
deems necessary in order to carry out the purposes of the Plan or to interpret
the terms and conditions of the Plan; provided, however, that no rule,
regulation or interpretation shall be contrary to the provisions of the Plan.

    (d) Claims Procedure: Except as otherwise provided in the Plan (including,
without limitation, in the final sentence of the definition of the term "Good
Reason", in the final sentence of Section 4(b) and in the final sentence of
Section 5(d)), the Company shall determine the rights of any

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employee of the Company to any Retention Bonus or Severance Compensation
hereunder. Any employee or former employee of any Employer who believes that he
has not received any benefit under the Plan to which he believes he is entitled,
may file a claim in writing with the Human Resources Department of the Company.
The Company shall, no later than 90 days after the receipt of a claim, either
allow or deny the claim by written notice to the claimant. If a claimant does
not receive written notice of the Company's decision on his claim within such
90-day period, the claim shall be deemed to have been denied in full.

    A denial of a claim by the Company, wholly or partially, shall be written in
a manner calculated to be understood by the claimant and shall include:

        (i)    the specific reason or reasons for the denial;

        (ii)   specific reference to pertinent Plan provisions on which the
    denial is based;

        (iii)  a description of any additional material or information necessary
    for the claimant to perfect the claim and an explanation of why such
    material or information is necessary; and

        (iv)   an explanation of the claim review procedure.

A claimant whose claim is denied (or his duly authorized representative) may,
within 30 days after receipt of denial of his claim, request a review of such
denial by the Company by filing with the Secretary of the Company a written
request for review of his claim. If the claimant does not file a request for
review with the Company within such 30-day period, the claimant shall be deemed
to have acquiesced in the original decision of the Company on his claim. If a
written request for review is so filed within such 30-day period, the Company
shall conduct a full and fair review of such claim. During such full review, the
claimant shall be given the opportunity to review documents that are pertinent
to his claim and to submit issues and comments in writing. The Company shall
notify the claimant of its decision on review within 60 days after receipt of a
request for review. Notice of the decision on review shall be in writing. If the
decision on review is not furnished to the claimant within such 60-day period,
the claim shall be deemed to have been denied on review. The existence of the
claims determination and review procedures set forth in this Section 16(d) shall
not impose on any Covered Employee any obligation or requirement to exhaust his
remedies or to commence proceedings under this Section 16(d) prior to seeking an
arbitration of any controversy or claim pursuant to Section 8 hereof, nor shall
the provision of this Section 16(d) operate to limit any Covered Employee's
rights to seek or obtain specific performance or other remedies pursuant to
Section 11(e) hereof.

    (e) Requirement of Receipt: Upon receipt of a Retention Bonus or any
Severance Compensation hereunder, the Company reserves the right to require any
Covered Employee to execute a receipt evidencing the amount and payment of such
Retention Bonus or Severance Compensation.

    17. Amendment and Termination. The Company reserves the right, except as
hereinafter provided, at any time and from time to time, to amend, modify,
change or terminate the Plan,

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including any Exhibit hereto; provided, however, that except as expressly
permitted by the final sentences of Sections 4(b) and 5(d) hereof, after the
Effective Date, any such amendment, modification, change or termination that
adversely affects the rights of any Covered Employee under the Plan will not
take effect and be applicable to any Covered Employee if either (A) (1) a
Trigger Date (as defined in Section 4(a) of this Plan) occurs within six months
after the date on which such amendment, modification, change or termination is
made and (2) a Change of Control related to or growing out of the specific event
causing the occurrence of the Trigger Date occurs thereafter or (B) such
amendment, modification, change or termination is made at any time (1) during
the period between the occurrence of a relevant Trigger Date and the occurrence
of the related Change of Control related to or growing out of the specific event
causing the occurrence of the Trigger Date or (2) at or after the occurrence of
a Change of Control (and before all payments and benefits hereunder associated
with such Change of Control are paid or made available as contemplated herein),
without (in each of the circumstances described in the foregoing clauses (A) and
(B)) the written consent of such Covered Employee.

    18. Other Plans, etc. If the terms of this Plan are inconsistent with the
provisions of any other plan, program, contract or arrangement of an Employer
with respect to any of the Covered Employees, to the extent such plan, program,
contract or arrangement may be amended by the Employer, the terms of the Plan
(insofar as they may be applicable to any such Covered Employee) will be deemed
to so amend such plan, program, contract or arrangement, and the terms of the
Plan will govern.

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                          NEXTLINK COMMUNICATIONS, INC.
            CHANGE OF CONTROL RETENTION BONUS AND SEVERANCE PAY PLAN

                                    EXHIBIT A

<TABLE>
<CAPTION>

        RETENTION BONUS
        ---------------

           Position                               Retention Bonus
           --------                               ---------------
<S>                                     <C>
Top Management (Tier 1)(1)                    150% of Base Salary plus 150%
                                              of Target Bonus

Top Management (Tier 2)(2)                    100% of Base Salary plus 100% of
                                              Target Bonus

Other Senior Management(3)                    50% of Base Salary
</TABLE>

--------
(1)     All employees in employee classification EX3.

(2)     All employees in employee classifications EX2 and EX1.

(3)     All employees in employee classifications E8 and E7.

                                      A-1
<PAGE>   13

                          NEXTLINK COMMUNICATIONS, INC.
            CHANGE OF CONTROL RETENTION BONUS AND SEVERANCE PAY PLAN

                                    EXHIBIT B

        Covered Employees Subject to Section 4(c)(ii)
                        (terminations for "Good Reason")

        Employees in employee classifications EX3, EX2 and EX1.

                                      B-1
<PAGE>   14

                          NEXTLINK COMMUNICATIONS, INC.
            CHANGE OF CONTROL RETENTION BONUS AND SEVERANCE PAY PLAN

                                    EXHIBIT C

<TABLE>
<CAPTION>

        POSITION                      SEVERANCE PAY                             BENEFITS
----------------------------   --------------------------------------   -----------------------------------
<S>                            <C>                                      <C>
Top Management(1)              200% of Base Salary and Target Bonus               2 Years

Other Senior Management(2)     100% of Base Salary and Target Bonus               1 Year

                               The above amounts shall be reduced by    For any Covered Employee who becomes
                               any severance pay or allowance           covered under another group health
                               mandated by statute or other law or      plan, benefits under the Company's
                               other arrangement of or with the         group health plan will be coordinated
                               Company; provided, however, that the     as provided in the Company's plan.
                               above amounts are in addition to any
                               compensation to which a Covered
                               Employee may be entitled under the
                               notice provisions of the Worker
                               Adjustment and Retraining Notification
                               Act of 1988.

----------------------------   --------------------------------------   -----------------------------------

</TABLE>

---------------
(1)     All employees in employee classifications EX3, EX2 and EX1.

(2)     All employees in employee classifications E8 and E7.<PAGE>   1

                          REGISTRATION RIGHTS AGREEMENT

            THIS REGISTRATION RIGHTS AGREEMENT, dated as of November 4, 1997, is
between NEXTLINK COMMUNICATIONS, INC., a Washington corporation (the "Company")
and Wendy P. McCaw.

            WHEREAS, Wendy P. McCaw currently owns 9,722,649 shares of Class
B common stock, $.02 par value, of the Company, (the "Class B Common Stock");
and

            WHEREAS, the Company wishes to grant Wendy P. McCaw and her
controlled affiliates holding shares of capital stock of the Company
(collectively, "WPM") certain registration rights with respect to the shares of
Class A common stock, par value $.02 per share of the Company (the "Class A
Common Stock") for which the shares of Class B Common Stock are convertible that
WPM may acquire in the future, as provided further herein.

            NOW THEREFORE, in consideration of the promises herein contained and
other good and valuable consideration, the parties hereto agree as follows:

            1.    Definitions.

            As used in this Agreement:

            (i) the terms "register," "registered" and "registration" refer to a
registration effected by preparing and filing a registration statement in
compliance with the Act (and any post-effective amendments filed or required to
be filed) and the declaration or ordering of effectiveness of such registration
statement;

            (ii) the term "Registrable Securities" means (A) all shares of Class
A Common Stock owned by WPM as of the date hereof, (B) any shares of Class A
Common Stock acquired by WPM through conversion of Class B Common Stock or
otherwise and (C) any capital stock of the Company issued as a dividend or other
distribution with respect to, or in exchange for or in replacement of, the
shares of Class A Common Stock referred to in clause (A) or (B) above;

            (iii) the term "Other Holders" shall mean those parties that are a
signatory to that certain Registration Rights Agreement dated January 15, 1997
among the Company and the parties listed on Schedule A hereto;

            (iv) "Commission" shall mean the Securities and Exchange Commission
or any other federal agency at the time administering the Act;

            (v) "Registration Expenses" shall mean all third-party expenses
incurred by the Company in compliance with Sections 2 and 3 hereof, including,
without limitation, all registration and filing fees, printing expenses, fees
and disbursements of counsel for the Company and the underwriters, if any, blue
sky fees and expenses and the third-party expenses of any special audits
incident to or required by any such registration (but excluding the compensation
of regular employees of the Company, which shall be paid in any event by the
Company);

            (vi) "Selling Expenses" shall mean all underwriting discounts and
selling commissions applicable to the sale of securities and all fees and
disbursements of counsel for each of the holders of registered securities;

            (vii) "Act" shall mean the Securities Act of 1933, as amended; and

            (viii) "Exchange Act" shall mean the Securities Exchange Act of
                    1934.

<PAGE>   2

            2.  Requested Registration.

            (i) Request for Registration. If the Company shall receive from WPM,
at any time after the earlier of (x) the announcement of the Company's first
quarter 1998 financial results or (y) June 30, 1998, a written request that the
Company effect any registration with respect to all or a part of the Registrable
Securities, the Company will, subject to compliance with any applicable
underwriters' lock-up agreements in effect as of the date hereof:

                  (A) promptly give written notice of the proposed registration
      qualification or compliance to all Other Holders; and

                  (B) as soon as practicable, use its diligent best efforts to
      effect such registration (including, without limitation, the execution of
      an undertaking to file post-effective amendments, appropriate
      qualification under applicable blue sky or other state securities laws and
      appropriate compliance with applicable regulations issued under the Act)
      as may be so requested and as would permit or facilitate the sale and
      distribution as soon as is practicable of all or such portion of such
      Registrable Securities as are specified in such request, together with all
      or such portion of the Registrable Securities of any Holder or Holders
      joining in such request as are specified in a written request received by
      the Company within twenty (20) business days after written notice from the
      Company is given under Section 2(i)(A) above; provided that the Company
      shall not be obligated to effect, or take any action to effect, any such
      registration pursuant to this Section 2:

                  (a) In any particular jurisdiction in which the Company would
            be required to execute a general consent to service of process in
            effecting such registration, qualification or compliance, unless the
            Company is already subject to service in such jurisdiction and
            except as may be required by the Act or applicable rules or
            regulations thereunder;

                  (b) After the Company has effected one (1) such registration
            pursuant to this Section 2 and such registration has been declared
            or ordered effective and the sales of such Registrable Securities
            shall have closed;

                  (c) If the securities requested by WPM and all Other Holders
            to be registered pursuant to such request have an anticipated
            aggregate public offering price (before any underwriting discounts
            and commissions) of less than $10,000,000.

            The registration statement filed pursuant to the request of WPM may,
subject to the provisions of Section 2(ii) below, include other securities of
the Company which are held by officers or directors of the Company, or which are
held by persons who, by virtue of agreements with the Company, are entitled to
include their securities in any such registration, but the Company shall have no
absolute right to include any of its securities in any such registration.

            The registration rights set forth in this Section 2 are personal to
WPM and shall not be assignable, by operation of law or otherwise, to any third
party not affiliated with WPM.

            (ii) Underwriting. If WPM intends to distribute the Registrable
Securities covered by WPM's request by means of an underwriting, they shall so
advise the Company as a part of their request made pursuant to Section 2.

            If officers or directors of the Company holding other securities of
the Company shall request inclusion in any registration pursuant to Section 2,
or if holders of securities of the Company other than Registrable Securities who
are entitled, by contract with the Company or otherwise, to have securities
included in such a registration (the "Other Stockholders") request such
inclusion, WPM shall offer to include the securities of such officers, directors
and Other Stockholders in the underwriting and may

                                        2
<PAGE>   3

condition such offer on their acceptance of the further applicable provisions of
this Section 2. WPM and the Company shall (together with all officers, directors
and Other Stockholders proposing to distribute their securities through such
underwriting) enter into an underwriting agreement in customary form with the
representative of the underwriter or underwriters selected for such underwriting
by WPM and reasonably acceptable to the Company. Notwithstanding any other
provision of this Section 2, if the representative advises WPM that marketing
factors require a limitation on the number of shares to be underwritten, the
securities of the Company held by officers or directors of the Company and the
securities held by Other Stockholders (other than the Other Holders) shall be
excluded from such registration to the extent so required by such limitation.
If, after the exclusion of such shares, further reductions are still required,
the number of shares included in the registration by WPM and each Other Holder
shall be reduced on a pro rata basis (based on the number of shares proposed to
be sold by WPM or such Other Holders), by such minimum number of shares as is
necessary to comply with such request. No Registrable Securities or any other
securities excluded from the underwriting by reason of the underwriter's
marketing limitation shall be included in such registration. If any officer,
director or Other Stockholder who has requested inclusion in such registration
as provided above disapproves of the terms of the underwriting, such person may
elect to withdraw therefrom by written notice to the Company, the underwriter
and WPM. The securities so withdrawn shall also be withdrawn from registration.
If the underwriter has not limited the number of Registrable Securities or other
securities to be underwritten, the Company may include its securities for its
own account in such registration if the representative so agrees and if the
number of Registrable Securities and other securities which would otherwise have
been included in such registration and underwriting will not thereby be limited.

            (iii) Notwithstanding the foregoing, if the Company shall furnish to
WPM a certificate signed by the President or Chief Executive Officer of the
Company stating that in the good faith judgment of the Board of Directors of the
Company, it would be seriously detrimental to the Company and its shareholders
for such registration statement to be filed and it is therefore essential to
defer the filing of such registration statement, then the Company shall have the
right to defer such filing for a period of not more than 120 days after receipt
of the request of WPM; provided, however, that the Company may not utilize this
right more than once in any twelve (12) month period.

            3.  Company Registration.

            (i) If, at any time, the Company shall determine to register any of
its equity securities either for its own account or for the account of a
security holder or holders exercising their respective demand registration
rights, other than a registration relating solely to employee benefit plans, or
a registration relating solely to a Commission Rule 145 transaction, or a
registration on any registration form which does not permit secondary sales or
does not include substantially the same information as would be required to be
included in a registration statement covering the sale of Registrable
Securities, the Company will:

                  (A) promptly give to WPM a written notice thereof (which shall
      include a list of the jurisdictions in which the Company intends to
      attempt to qualify such securities under the applicable blue sky or other
      state securities laws); and

                  (B) include in such registration (and any related
      qualification under blue sky laws or other compliance), and in any
      underwriting involved therein, all the Registrable Securities specified in
      a written request or requests, made by WPM within twenty (20) days after
      receipt of the written notice from the Company described in clause (i)
      above, except as set forth in Section 3(ii) below. Such written request
      may specify all or a part of the WPM's Registrable Securities.

            (ii) Underwriting. If the registration of which the Company gives
notice is for a registered public offering involving an underwriting, the
Company shall so advise WPM as a part of the written notice given pursuant to
Section 3(i)(A). In such event, the right of WPM to registration pursuant to
this Section 3 shall be conditioned upon WPM's participation in such
underwriting and the inclusion of WPM's Registrable Securities in the
underwriting to the extent provided herein. WPM shall (together with the

                                       3
<PAGE>   4

Company and the Other Stockholders distributing their securities through such
underwriting) enter into an underwriting agreement in customary form with the
representative of the underwriter or underwriters selected for underwriting by
the Company. Notwithstanding any other provision of this Section 3, if the
representative determines that marketing factors require a limitation on the
number of shares to be underwritten, the representative may (subject to the
allocation priority set forth below) limit the number of Registrable Securities
to be included in the registration and underwriting. The Company shall so advise
all holders of securities requesting registration, and the number of shares of
securities that are entitled to be included in the registration and underwriting
shall be allocated in the following manner: The securities of the Company held
by officers, directors and Other Stockholders (other than the Other Holders) of
the Company (other than securities held by holders who by contractual right
initiated the demand for such registration ("Demanding Holders")) shall be
excluded from such registration and underwriting to the extent required by such
limitation, and, if a limitation on the number of shares is still required, the
number of shares that may be included in the registration and underwriting by
WPM and each of the Other Holders and Demanding Holders shall be reduced, on a
pro rata basis (based on the number of shares proposed to be sold by WPM and
such Other Holders or Demanding Holders), by such minimum number of shares as is
necessary to comply with such limitation. If any of WPM or such Other Holders or
Demanding Holders or any officer, director or Other Stockholder disapproves of
the terms of any such underwriting, he may elect to withdraw therefrom by
written notice to the Company and the underwriter. Any Registrable Securities or
other securities excluded or withdrawn from such underwriting shall be withdrawn
from such registration.

            (iii) Number and Transferability. WPM shall be entitled to have
their shares included in an unlimited number of registrations pursuant to this
Section 3. The registration rights granted pursuant to this Section 3 are
personal to WPM and shall not be assignable, by operation of law or otherwise to
any third party not affiliated with WPM.

            4. Expenses of Registration. All Registration Expenses and Selling
Expenses incurred in connection with any registration, qualification or
compliance pursuant to Section 2 of this Agreement shall be borne by the holders
of the securities so registered pro rata on the basis of the number of shares so
registered. Without limiting the generality of the foregoing, in the event the
Company includes shares in any registration, qualification or compliance
pursuant to Section 2 of this Agreement, the Company shall pay the Registration
Expenses in proportion to the Company's share of the total number of shares
included in such registration. All Registration Expenses incurred in connection
with any registration, qualification or compliance pursuant to Section 3 of this
Agreement shall be borne by the Company (or the Demanding Holders if so provided
in the applicable contract), and all Selling Expenses incurred in connection
with any such registration, qualification or compliance shall be borne by the
holders of securities so registered pro rata on the basis of the number of
shares so registered.

            5. Registration Procedures. In the case of each registration
effected by the Company pursuant to this Agreement, the Company will keep WPM as
applicable, advised in writing as to the initiation of each registration and as
to the completion thereof. The Company will:

                  (i) Keep such registration effective for a period of one
      hundred eighty (180) days or until WPM, has completed the distribution
      described in the registration statement relating thereto, whichever first
      occurs; provided, however, that (A) such 180-day period shall be extended
      for a period of time equal to the period during which WPM will refrain
      from selling any securities included in such registration in accordance
      with provisions in Section 9 hereof; and (B) in the case of any
      registration of Registrable Securities on Form S-3 which are intended to
      be offered on a continuous or delayed basis, such 180-day period shall be
      extended until all such Registrable Securities are sold, provided that
      Rule 415, or any successor rule under the Act, permits an offering on a
      continuous or delayed basis, and provided further that applicable rules
      under the Act governing the obligation to file a post-effective amendment
      permit, in lieu of filing a post-effective amendment which (1) includes
      any prospectus required by Section 10(a) of the Act or (2) reflects facts
      or events representing a material or fundamental change in the information
      set forth in the registration statement, the incorporation by reference of
      information required to be included in (1)

                                       4
<PAGE>   5

      and (2) above to be contained in periodic reports filed pursuant to
      Section 12 or 15(d) of the Exchange Act in the registration statement.

                  (ii) Furnish such number of prospectuses and other documents
      incident thereto as WPM, from time to time may reasonably request;
      provided, however, that WPM and the other holders of securities so
      registered, pro rata on the basis of the number of their shares so
      included in such registration, reimburse the Company for expenses
      incurred in performing its obligations under this Section 5.

                  (iii) Prepare and file with the SEC such amendments and
      supplements to such registration statement and the prospectus used in
      connection with such registration statement as may be necessary to comply
      with the provisions of the Act with respect to the disposition of all
      securities covered by such registration statement.

                  (iv) Use its best efforts to register and qualify the
      securities covered by such registration statement under such other
      securities or Blue Sky laws of such jurisdictions as shall be reasonably
      requested by WPM, provided that the Company shall not be required in
      connection therewith or as a condition thereto to qualify to do business
      or to file a general consent to service of process in any such states or
      jurisdictions.

                  (v) In the event of any underwritten public offering, enter
      into and perform its obligations under an underwriting agreement, in usual
      and customary form, with the managing underwriter of such offering. WPM
      shall also enter into and perform their obligations under such an
      agreement.

                  (vii) Furnish, at the request of WPM, on the date that WPM's
      Registrable Securities are delivered to the underwriters for sale in
      connection with a registration pursuant to this Agreement, if such
      securities are being sold through underwriters, or, if such securities are
      not being sold through underwriters, on the date that the registration
      statement with respect to such securities becomes effective, (A) an
      opinion, dated such date, of the counsel representing the Company for the
      purposes of such registration, in form and substance as is customarily
      given to underwriters in an underwritten public offering, addressed to the
      underwriters, if any, and to WPM and (B) a letter dated such date, from
      the independent certified public accountants of the Company, in form and
      substance as is customarily given by independent certified public
      accountants to underwriters in an underwritten public offering, addressed
      to the underwriters, if any, and to WPM.

            6.  Indemnification.

            (i) The Company will indemnify WPM and each of the officers,
directors and partners and each person controlling each of the WPM entities
(collectively the "WPM Indemnified Parties"), with respect to each registration
which has been effected pursuant to this Agreement, and each underwriter, if
any, and each person who controls any underwriter, against all claims, losses,
damages and liabilities (or actions in respect thereof) arising out of or based
on any untrue statement (or alleged untrue statement) of a material fact
contained in any prospectus, offering circular or other document (including any
related registration statement, notification or the like) incident to any such
registration, qualification or compliance, or based on any omission (or alleged
omission) to state therein a material fact required to be stated therein or
necessary to make the statements therein not misleading, or any violation by the
Company of the Act or any rule or regulation thereunder applicable to the
Company and relating to action or inaction required of the Company in connection
with any such registration, qualification or compliance, and will reimburse each
of the WPM Indemnified Parties, each such underwriter and each person who
controls any such underwriter, for any legal and any other expenses reasonably
incurred in connection with investigating and defending any such claim, loss,
damage, liability or action, provided that the Company will not be liable in any
such case to the extent that any such claim, loss, damage, liability or expense
arises out of or is based on any untrue statement or omission based upon written
information furnished to the Company by WPM or the

                                       5
<PAGE>   6

underwriter and stated to be specifically for use therein.

            (ii) WPM will, if Registrable Securities held by WPM are included in
the securities as to which such registration, qualification or compliance is
being effected, indemnify the Company, each of its directors and officers and
each underwriter, if any, of the Company's securities covered by such a
registration statement, each person who controls the Company or such underwriter
within the meaning of the Act and the rules and regulations thereunder, each
Other Stockholder and each of their officers, directors, and partners, and each
person controlling such Other Stockholder against all claims, losses, damages
and liabilities (or actions in respect thereof) arising out of or based on any
untrue statement (or alleged untrue statement) of a material fact contained in
any such registration statement, prospectus, offering circular or other document
made by WPM, or any omission (or alleged omission) to state therein a material
fact required to be stated therein or necessary to make the statements by WPM
therein not misleading, and will reimburse the Company and such Other
Stockholders, directors, officers, partners, persons, underwriters or control
persons for any legal or any other expenses reasonably incurred in connection
with investigating or defending any such claim, loss, damage, liability or
action, in each case to the extent, but only to the extent, that such untrue
statement (or alleged untrue statement) or omission (or alleged omission) is
made in such registration statement, prospectus, offering circular or other
document in reliance upon and in conformity with written information furnished
to the Company by WPM and stated to be specifically for use therein; provided,
however, that the obligations of WPM hereunder shall be limited to an amount
equal to the net proceeds to of securities sold as contemplated herein.

            (iii) Each party entitled to indemnification under this Section 6
(the "Indemnified Party") shall give notice to the party required to provide
indemnification (the "Indemnifying Party") promptly after such Indemnified Party
has actual knowledge of any claim as to which indemnity may be sought, and shall
permit the Indemnifying Party to assume the defense of any such claim or any
litigation resulting therefrom; provided that counsel for the Indemnifying
Party, who shall conduct the defense of such claim or any litigation resulting
therefrom, shall be approved by the Indemnified Party (whose approval shall not
unreasonably be withheld) and the Indemnified Party may participate in such
defense at such party's expense (unless the Indemnified Party shall have
reasonably concluded that there may be a conflict of interest between the
Indemnifying Party and the Indemnified Party in such action, in which case the
fees and expenses of counsel shall be at the expense of the Indemnifying Party),
and provided further that the failure of any Indemnified Party to give notice as
provided herein shall not relieve the Indemnifying Party of its obligations
under this Section 6 unless the Indemnifying Party is materially prejudiced
thereby. No Indemnifying Party, in the defense of any such claim or litigation,
shall, except with the consent of each Indemnified Party, consent to entry of
any judgment or enter into any settlement which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or
litigation. Each Indemnified Party shall furnish such information regarding
itself or the claim in question as an Indemnifying Party may reasonably request
in writing and as shall be reasonably required in connection with the defense of
such claim and litigation resulting therefrom.

            (iv) If the indemnification provided for in this Section 6 is held
by a court of competent jurisdiction to be unavailable to an Indemnified Party
with respect to any loss, liability, claim, damage or expense referred to
herein, then the Indemnifying Party, in lieu of indemnifying such Indemnified
Party hereunder, shall contribute to the amount paid or payable by such
Indemnified Party as a result of such loss, liability, claim, damage or expense
in such proportion as is appropriate to reflect the relative fault of the
Indemnifying Party on the one hand and of the Indemnified Party on the other in
connection with the statements or omissions which resulted in such loss,
liability, claim, damage or expense, as well as any other relevant equitable
considerations. The relative fault of the Indemnifying Party and of the
Indemnified Party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
Indemnifying Party or by the Indemnified Party and the parties' relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission.

                                       6
<PAGE>   7

            (v) Notwithstanding the foregoing, to the extent that the provisions
on indemnification and contribution contained in the underwriting agreement
entered into in connection with any underwritten public offering contemplated by
this Agreement are in conflict with the foregoing provisions, the provisions in
such underwriting agreement shall be controlling.

            (vi) The foregoing indemnity agreement of the Company and WPM is
subject to the condition that, insofar as they relate to any loss, claim,
liability or damage made in a preliminary prospectus but eliminated or remedied
in the amended prospectus on file with the Commission at the time the
registration statement in question becomes effective or the amended prospectus
filed with the Commission pursuant to Commission Rule 424(b) (the "Final
Prospectus"), such indemnity agreement shall not inure to the benefit of any
underwriter if a copy of the Final Prospectus was furnished to the underwriter
and was not furnished to the person asserting the loss, liability, claim or
damage at or prior to the time such action is required by the Act.

            7. Information by WPM. WPM shall furnish to the Company such
information regarding WPM and the distribution proposed by WPM as the Company
may reasonably request in writing and as shall be reasonably required in
connection with any registration, qualification or compliance referred to in
this Agreement.

            8.  Rule 144 Reporting.

            With a view to making available the benefits of certain rules and
regulations of the Commission which may permit the sale of restricted securities
to the public without registration, the Company agrees to:

                  (i) make and keep public information available as those terms
      are understood and defined in Rule 144, at all times from and after ninety
      (90) days following the effective date of the first registration under the
      Act filed by the Company for an offering of its securities to the general
      public;

                  (ii) use its best efforts to file with the Commission in a
      timely manner all reports and other documents required of the Company
      under the Act and the Exchange Act at any time after it has become subject
      to such reporting requirements; and

                  (iii) so long as WPM owns any Registrable Securities, furnish
      to WPM upon request, a written statement by the Company as to its
      compliance with the reporting requirements of Rule 144 (at any time from
      and after ninety (90) days following the effective date of the first
      registration statement filed by the Company for an offering of its
      securities to the general public), and of the Act and the Exchange Act (at
      any time after it has become subject to such reporting requirements), a
      copy of the most recent annual or quarterly report of the Company, and
      such other reports and documents so filed as WPM may reasonably request in
      availing themselves of any rule or regulation of the Commission allowing
      WPM to sell any such securities without registration.

            9. "Market Stand-off" Agreement. WPM agree, if requested by the
Company and an underwriter of Common Stock (or other securities) of the Company,
not to sell or otherwise transfer or dispose of any Class A Common Stock (or
other securities) of the Company held by WPM during the 180 day period following
the effective date of the initial registration statement of the Company relating
to any such securities filed under the Act and during the 90 day period
following any subsequent registration statement filed under the Act.

            If requested by the underwriters, WPM shall execute a separate
agreement to the foregoing effect. The Company may impose stop-transfer
instructions with respect to the shares (or securities) subject to the foregoing
restriction until the end of such period.

                                       7
<PAGE>   8

            10. Termination. The registration rights set forth in this Agreement
shall not be available to WPM if, in the opinion of counsel to the Company, all
of the Registrable Securities then owned by WPM could be sold in any 90-day
period pursuant to Rule 144 under the Act (without giving effect to the
provisions of Rule 144(k)). In addition, the registration rights set forth in
this Agreement shall terminate upon the transfer or assignment of the
Registrable Securities by WPM to any non-affiliated third party.

            11. Notices. All communications provided for hereunder shall be sent
by first-class mail or facsimile and (a) if addressed to WPM, addressed to WPM
at the address or fax number contained on Schedule B to this Agreement, or at
such other address or fax number as WPM shall have furnished to the Company in
writing or (b) if addressed to the Company, at 155 108th Avenue NE, 8th Floor,
Bellevue, Washington 98004, Attention: General Counsel, or fax number (206)
519-8910 or at such other address or fax number, or to the attention of such
other officer, as the Company shall have furnished to WPM in writing. Notices
sent by first-class mail shall be deemed received three days after the date of
deposit of such notice in the United States mail. Notices sent by facsimile
shall be deemed received upon receipt by the notified party's facsimile machine.

            12. No Assignment. This Agreement is personal to WPM and shall not
be assignable, by operation of law or otherwise to any third party not
affiliated with WPM.

            13. Descriptive Headings. The descriptive headings of the several
sections and paragraphs of this Agreement are inserted for reference only and
shall not limit or otherwise affect the meaning hereof.

            14. Governing Law. This Agreement shall be construed and enforced in
accordance with, and the rights of the parties shall be governed by, the laws of
the State of Washington.

            15. No Inconsistent Agreements. The Company will not on or after the
date of this Agreement enter into any agreement with respect to its securities
that is inconsistent with the rights granted to WPM in this Agreement or
otherwise conflicts with the provisions hereof.

            16. Amendments and Waivers. No provision of this Agreement may be
amended or waived except by an instrument in writing signed by the party sought
to be bound.

            17. Counterparts. This Agreement may be executed simultaneously in
any number of counterparts, each of which shall be deemed an original, but all
such counterparts shall together constitute one and the same instrument.

            IN WITNESS WHEREOF, the parties have caused this agreement to be
executed and delivered as of the date first above written.

                                    By: /s/ Wendy P. McCaw
                                        -------------------------------
                                            Wendy P. McCaw

                                    NEXTLINK COMMUNICATIONS, INC.

                                    By: /s/ R. Bruce Easter, Jr.
                                        -------------------------------
                                          Name: R. Bruce Easter, Jr.
                                                -----------------------
                                          Title: Vice President
                                                ----------------------

                                       8
<PAGE>   9

                                   SCHEDULE A

                      OTHER HOLDERS' ADDRESSES FOR NOTICES

EAGLE RIVER INVESTMENTS, L.L.C.
c/o C. James Judson
2300 Carillon Point
Kirkland, WA 98033
Fax:  (206)828-8060

NEXTLINK, INC.
c/o R. Bruce Easter, Jr.
155 108th Avenue N.E., Suite 810
Bellevue, WA 98004
Fax:  (206)519-8910

BWP, INC.
c/o Robert Kingery
700 S.W. Washington, 8th Floor
Portland, OR 97205
Fax:  (503)727-6821

ROWENA FAMILY LIMITED LIABILITY COMPANY
c/o Scot Jarvis
4153 Issaquah Pine Lake Road
Issaquah, WA 98029
Fax:  (206)392-9944

PENNS LIGHT COMMUNICATIONS, INC.
c/o Gary Rawding
925 Berkshire Blvd.
Wyomissing, PA 91610
Fax:  (610)288-5666

PROBE VENTURES CORP.
c/o Victor Schnee
Three Wing Drive, Suite 240
Cedar Knolls, NJ 07927-1000
Fax:  (201)285-1519

CITY SIGNAL, INC.
c/o Richard Postma
Miller, Johnson, Snell & Cummiskey
800 Calder Plaza Building
Grand Rapids, MI 49503
Fax:  (616)459-6708

U.S. NETWORK CORPORATION
c/o Ron Gavillet
10 South Riverside Plaza, Suite 401
Chicago, IL 60606-3709
Fax:  (312)906-3636

                                       9
<PAGE>   10

G. ANDREW BARFUSS
1499 North Cherry Blossom Drive
Farmington, UT 84025-3900
Fax:  (801)451-9708

J. MERRILL BEAN
1972 North 2600 East
Layton, UT 84040
Fax:  (801)451-9708

JOAN BEAN
1972 North 2600 East
Layton, UT 84040
Fax:  (801)451-9708

SCOT JARVIS
4153 Issaquah Pine Lake Road
Issaquah, Washington 98029
Fax:  (206) 392-9944

                                       10

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