Document:

exv10w1

 

EXHIBIT
10.1

Execution Version

ASSET PURCHASE AGREEMENT

between

BELL INDUSTRIES, INC.

and

VELOCITA WIRELESS LLC

 

Dated as of March 30, 2008

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	1	 
	 
	1.1 Certain Definitions
	 	 	1	 
	 
	1.2 Terms Defined Elsewhere in this Agreement
	 	 	7	 
	 
	1.3 Other Definitional and Interpretive Matters
	 	 	10	 
	 
	ARTICLE II PURCHASE AND SALE OF ASSETS; ASSUMPTION OF LIABILITIES
	 	 	11	 
	 
	2.1 Purchase and Sale of Assets
	 	 	11	 
	 
	2.2 Excluded Assets
	 	 	13	 
	 
	2.3 Assumption of Liabilities
	 	 	14	 
	 
	2.4 Excluded Liabilities
	 	 	15	 
	 
	2.5 Further Conveyances and Assumptions; Consent of Third Parties
	 	 	17	 
	 
	2.6 Bulk Sales Laws
	 	 	18	 
	 
	2.7 Purchase Price Allocation
	 	 	18	 
	 
	2.8 Allocation of Taxes and Expenses
	 	 	19	 
	 
	ARTICLE III CONSIDERATION
	 	 	20	 
	 
	3.1 Consideration
	 	 	20	 
	 
	3.2 Purchase Price Adjustment
	 	 	20	 
	 
	3.3 Reimbursed Liabilities
	 	 	22	 
	 
	3.4 Closing Date Shortfall Cash
	 	 	23	 
	 
	ARTICLE IV CLOSING AND TERMINATION
	 	 	23	 
	 
	4.1 Closing Date
	 	 	23	 
	 
	4.2 Termination of Agreement
	 	 	23	 
	 
	4.3 Procedure Upon Termination
	 	 	24	 
	 
	4.4 Effect of Termination
	 	 	25	 
	 
	ARTICLE V REPRESENTATIONS AND WARRANTIES OF SELLER
	 	 	25	 
	 
	5.1 Organization and Good Standing
	 	 	25	 
	 
	5.2 Authorization of Agreement
	 	 	26	 
	 
	5.3 Conflicts; Consents of Third Parties; Subsidiaries
	 	 	26	 
	 
	5.4 Balance Sheets; Books of Account
	 	 	27	 
	 
	5.5 Title to Purchased Assets; Sufficiency
	 	 	27	 

 -i-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	5.6 Compliance with Laws; Permits
	 	 	28	 
	 
	5.7 Material Contracts
	 	 	28	 
	 
	5.8 Legal Proceedings
	 	 	30	 
	 
	5.9 Intellectual Property
	 	 	30	 
	 
	5.10 Insurance
	 	 	32	 
	 
	5.11 Labor
	 	 	32	 
	 
	5.12 Environmental Matters
	 	 	33	 
	 
	5.13 Conduct of Business in Ordinary Course
	 	 	34	 
	 
	5.14 Customers and Suppliers
	 	 	34	 
	 
	5.15 PP&E
	 	 	35	 
	 
	5.16 Foreign Corrupt Practices Act and Export Restrictions
	 	 	35	 
	 
	5.17 Taxes
	 	 	35	 
	 
	5.18 Real Property
	 	 	35	 
	 
	5.19 Tangible Personal Property
	 	 	36	 
	 
	5.20 Product Warranty; Product Liability
	 	 	36	 
	 
	5.21 Certain Payments; Certain Interests
	 	 	36	 
	 
	5.22 Employee Benefits
	 	 	37	 
	 
	5.23 Financial Advisors
	 	 	38	 
	 
	5.24 Closing Net Current Assets
	 	 	38	 
	 
	5.25 Solvency
	 	 	38	 
	 
	5.26 No Other Representations or Warranties
	 	 	38	 
	 
	ARTICLE VI REPRESENTATIONS AND WARRANTIES OF PURCHASER
	 	 	38	 
	 
	6.1 Organization and Good Standing
	 	 	38	 
	 
	6.2 Authorization of Agreement
	 	 	38	 
	 
	6.3 Conflicts; Consents of Third Parties
	 	 	39	 
	 
	6.4 Litigation
	 	 	39	 
	 
	6.5 Financial Advisors
	 	 	39	 
	 
	6.6 Financing
	 	 	39	 
	 
	6.7 Purchaser Qualifications
	 	 	40	 
	 
	6.8 No Other Representations or Warranties
	 	 	40	 

 -ii-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	ARTICLE VII CERTAIN COVENANTS
	 	 	40	 
	 
	7.1 Access to Information; Preservation of Records by Purchaser
	 	 	40	 
	 
	7.2 Conduct of the Business Pending the Closing
	 	 	41	 
	 
	7.3 Consents
	 	 	42	 
	 
	7.4 Further Assurances
	 	 	42	 
	 
	7.5 FCC Licenses
	 	 	42	 
	 
	7.6 Lender Consents
	 	 	42	 
	 
	7.7 Confidentiality
	 	 	44	 
	 
	7.8 Preservation of Records by Seller
	 	 	45	 
	 
	7.9 Publicity
	 	 	45	 
	 
	7.10 Non Competition; Non Solicitation
	 	 	46	 
	 
	7.11 Tax Matters
	 	 	47	 
	 
	7.12 Supplementation and Amendment of Disclosure Schedule
	 	 	47	 
	 
	ARTICLE VIII EMPLOYEES AND EMPLOYEE BENEFITS
	 	 	47	 
	 
	8.1 Employment
	 	 	47	 
	 
	8.2 Employee Benefits
	 	 	48	 
	 
	8.3 Employee Rights
	 	 	49	 
	 
	8.4 Employee Information
	 	 	49	 
	 
	8.5 Cooperation
	 	 	49	 
	 
	8.6 Employee Obligations of Confidentiality
	 	 	49	 
	 
	ARTICLE IX CONDITIONS TO CLOSING
	 	 	49	 
	 
	9.1 Conditions Precedent to Obligations of Purchaser
	 	 	49	 
	 
	9.2 Conditions Precedent to Obligations of Seller
	 	 	52	 
	 
	9.3 Frustration of Closing Conditions
	 	 	55	 
	 
	ARTICLE X INDEMNIFICATION
	 	 	55	 
	 
	10.1 Survival of Representations and Warranties
	 	 	55	 
	 
	10.2 Indemnification by Seller
	 	 	56	 
	 
	10.3 Indemnification by Purchaser
	 	 	56	 
	 
	10.4 Indemnification Procedures
	 	 	57	 
	 
	10.5 Certain Limitations on Indemnification
	 	 	59	 

 -iii-

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	10.6 Calculation of Losses
	 	 	60	 
	 
	10.7 Tax Treatment of Indemnity Payments
	 	 	60	 
	 
	10.8 Exclusive Remedy
	 	 	60	 
	 
	ARTICLE XI MISCELLANEOUS
	 	 	61	 
	 
	11.1 Expenses
	 	 	61	 
	 
	11.2 Submission to Jurisdiction; Consent to Service of Process
	 	 	61	 
	 
	11.3 Entire Agreement
	 	 	62	 
	 
	11.4 Governing Law
	 	 	62	 
	 
	11.5 Notices
	 	 	62	 
	 
	11.6 Severability
	 	 	63	 
	 
	11.7 Binding Effect; Assignment
	 	 	63	 
	 
	11.8 Non Recourse
	 	 	64	 
	 
	11.9 Counterparts
	 	 	64	 

	 	 	 
	Exhibits	 	 
	 
	 	 
	A-1

	 	Form of Note
	A-2

	 	Form of Copyright Security Agreement
	A-3

	 	Form of Trademark Security Agreement
	A-4

	 	Form of Patent Security Agreement
	A-5

	 	Form of Contracts Security Agreement
	A-6

	 	Form of Membership Pledge Agreement
	B

	 	Form of Bill of Sale
	C

	 	Form of Assignment and Assumption Agreement
	D

	 	Form of Copyright Assignment
	E

	 	Form of Trademark Assignment
	F

	 	Form of Patent Assignment
	G

	 	Form of Pager Agreement
	H-1

	 	Form of Sub-Lease Agreement for Clinton, MS property
	H-2

	 	Form of Landlord Estoppel Certificate for Clinton, MS property
	I-1

	 	Form of Lease Assignment Agreement for Jackson, MS property
	I-2

	 	Form of Sub-Lease Agreement for Jackson, MS property
	I-3

	 	Form of Landlord Estoppel Certificate for Jackson, MS property
	J

	 	Form of Access Agreement
	K

	 	Form of Instrument of Assignment (FCC Licenses)
	L

	 	Form of Subcontract for GSA Agreement
	M

	 	Form of Transition Services Agreement

iv 

 

ASSET PURCHASE AGREEMENT

               This ASSET PURCHASE AGREEMENT (this “Agreement”), dated as of March 30, 2008, is
between BELL INDUSTRIES, INC., a California corporation (“Seller”), and VELOCITA WIRELESS
LLC, a Delaware limited liability company (“Purchaser”), and relates to the sale of the
business as a going concern heretofore conducted by Seller under the trade name “SkyTel”.

W I T N E S S E T H:

               WHEREAS, Seller presently conducts the Business (as hereinafter defined); and

               WHEREAS, Seller desires to sell, transfer and assign to Purchaser, and Purchaser desires to
acquire substantially all of the Purchased Assets (as hereinafter defined) for the Purchase Price
(as hereinafter defined) and the assumption by Purchaser of certain specified liabilities relating
to the Business, all as more specifically provided herein.

               NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
hereinafter contained, the parties hereby agree as follows:

ARTICLE I

DEFINITIONS

          1.1
Certain Definitions. For purposes of this Agreement, the following terms shall have
the meanings specified in this Section 1.1:

               “Affiliate” means, with respect to any Person, any other Person that, directly or
indirectly through one or more intermediaries, controls, or is controlled by, or is under common
control with, such Person, and the term “control” (including the terms “controlled
by” and “under common control with”) means the possession, directly or indirectly, of
the power to direct or cause the direction of the management and policies of such Person, whether
through ownership of voting securities, by contract or otherwise.

               “AVL Business” means the former business of Seller consisting of the production, sale,
development and operation of the wireless automatic vehicle location devices and services currently
marketed or being developed under the brands of “SkyGuard”, “FleetHawk” and “Sentry.”

               “AVL Contracts” means collectively, the (i) Transition Services Agreement, dated
February 14, 2008, between Seller and SkyGuard, LLC; (ii) Wireless Reseller Agreement, dated
February 14, 2008, between Seller and SkyGuard, LLC; (iii) Consulting Agreement, dated February 14,
2008, between SkyGuard, LLC and Seller (regarding services of Raj Cherukuri); (iv) Consulting
Agreement, dated February 14, 2008, between SkyGuard, LLC and Seller (regarding services of Ratan
Guduru); (v) Software License Agreement, dated February 14,
2008, between SkyGuard, LLC and Seller; and (vi) Linking Agreement, dated February 14, 2008,
between Seller and SkyGuard, LLC.

1

 

               “Business” means the business of Seller consisting of the production, sale,
development and operation of one-way and two-way paging services, air-to-ground wireless services,
cellular reseller services and fixed location wireless telemetry services, including all business
conducted under the “SkyTel” brand.

               “Business Day” means any day of the year on which national banking institutions in New
York are open to the public for conducting business and are not required or authorized to close.

               “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985.

               “Code” means the Internal Revenue Code of 1986, as amended.

               “Contract” means any contract, agreement, open purchase order, indenture, note, bond,
mortgage, loan, instrument, lease, license, binding commitment or other arrangement, whether
written or oral, including distribution and sales representative agreements, and other agreements
(including any amendments and other modifications thereto).

               “Copyrights” means all un-registered copyrights, works of authorship and mask works,
all registered copyrights, works of authorship and mask works registrations, and any applications
for registration thereof.

               “Documents” means all files, documents, instruments, papers, books, reports, records,
tapes, microfilms, photographs, letters, budgets, forecasts, ledgers, journals, customer and
supplier lists, regulatory filings, operating data and plans, technical documentation (design
specifications, functional requirements, operating instructions, logic manuals, flow charts, etc.),
user documentation (installation guides, user manuals, training materials, release notes, working
papers, etc.), marketing documentation (sales brochures, flyers, pamphlets, web pages, etc.), and
other similar materials related primarily to the Business and the Purchased Assets in each case
whether or not in electronic form; provided, however, that “Documents” shall not include
duplicate copies of such Documents retained by Seller or its Affiliates subject to the obligations
relating to the use and disclosure thereof set forth in this Agreement.

               “Employee” means, as of any applicable date, all individuals who are employed by
Seller as common law employees of the Business, including all active full-time and part-time
employees, employees on vacation or approved personal leave, workers’ compensation, military leave
with reemployment rights under federal Law, maternity leave, leave under the Family and Medical
Leave Act of 1993, short-term disability, long-term disability, and employees on other approved
leaves of absence with a legal or contractual right to reinstatement.

               “Environmental Claim” means any allegation, notice of violation, action, suit, claim,
Lien, demand, abatement or other Order or direction (conditional or otherwise) by reason of
statute, common law, or contract, in law or equity, by any Governmental Body or by any other Person
for personal injury (including sickness, disease or death), real, personal, tangible or intangible
property damage, consequential damage, stigma, loss of value, damage to the
environment (including air, soil, water, or natural resources), nuisance, trespass, pollution,
contamination or other adverse effects on the environment, or for fines, penalties, injunctions, or
restrictions resulting from or based upon (a) the existence, or the continuation of the existence,
of

2

 

a Release or threatened Release (including sudden or non-sudden accidental or nonaccidental
releases) of, or exposure or threatened exposure to, any Hazardous Material or other substance,
chemical, material, pollutant, contaminant, odor, audible noise, or other Release in, into or onto
the environment (including the air, soil, water or natural resources) at, in, by, from or related
to any leased real estate or any activities conducted thereon or the Business; (b) the handling,
use, transportation, storage, treatment or disposal of Hazardous Materials; (c) any disturbance or
impact to the environment; or (d) the violation, or alleged violation, of any Environmental Law,
Order or Permit of or from any Governmental Body.

               “Environmental Law” means any Law relating to human health and safety or the
protection of the environment or natural resources, including the Comprehensive Environmental
Response, Compensation and Liability Act (42 U.S.C. § 9601 et seq.), the Hazardous Materials
Transportation Act (49 U.S.C. App. § 1801 et seq.), the Resource Conservation and Recovery Act (42
U.S.C. § 6901 et seq.), the Clean Water Act (33 U.S.C. § 1251 et seq.), the Safe Drinking Water Act
of 1974 (42 U.S.C. § 300f et seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic
Substances Control Act (15 U.S.C. § 2601 et seq.), the Federal Insecticide, Fungicide, and
Rodenticide Act (7 U.S.C. § 136 et seq.), the Emergency Planning and Community Right-to-Know Act of
1986 (42 U.S.C. § 1101 et seq.); the Endangered Species Act of 1973 (7 U.S.C. § 136; 16 U.S.C. §
460 et seq.), and the Occupational Safety and Health Act of 1970 (29 U.S.C. §651 et seq.); as each
has been amended and the regulations promulgated pursuant thereto.

               “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

               “ERISA Affiliate” means, with respect to any Person, all other Persons that are
treated as a single employer with that Person pursuant to sections 414(b), 414(c), 414(m), and/or
414(o) of the Code.

               “Excluded Marks” means those Trademarks of Seller listed on Schedule 1.1(ii).

               “FCC Licenses” means all Permits issued or granted to Seller by the FCC.

               “Final Order” means, with respect to an action or order of the FCC granting the FCC
Consent, when such action or order shall have been issued by the FCC in writing, setting forth the
FCC Consent, and (i) such action or order shall not have been reversed, stayed, enjoined, set
aside, annulled or suspended, and (ii) no protest, request for stay, reconsideration or review by
the FCC on its own motion or by any third party, petition for FCC reconsideration or for rehearing,
application for FCC review, or judicial appeal of such action or order shall be pending, when the
period provided by law for initiating such protest, request for stay, reconsideration or review by
the FCC on its own motion, petition for FCC reconsideration or for rehearing, application for FCC
review, or judicial appeal of such action or order shall have expired.

               “GAAP” means generally accepted accounting principles in the United States as of the
date hereof.

3

 

               “Governmental Body” means any government or governmental or regulatory body thereof,
or political subdivision thereof, whether foreign, federal, state, or local, or any agency,
instrumentality or authority thereof, or any court or arbitrator (public or private).

               “Hazardous Material” means any substance, chemical, material or waste, or any
constituent thereof, that is defined by any Environmental Law as hazardous, corrosive, ignitable,
explosive, infectious, radioactive, carcinogenic, petroleum-derived, or toxic, such that the use,
storage, treatment, disposal, release, discharge of, or exposure to which is prohibited, limited or
otherwise is regulated by any Governmental Body, or is regulated by or forms the basis of liability
under any Environmental Law, including any material, waste or substance which is defined as a
“hazardous waste,” “hazardous material,” “hazardous substance,” “extremely hazardous waste,”
“restricted hazardous waste,” “universal waste,” “commingled waste,” “a pollutant,” “pollution,”
“subject waste,” a “contaminant,” “toxic waste” or “toxic substance” under any provision of
Environmental Law, including petroleum or petroleum products, petroleum components, constituents,
additives or derivatives thereof, radioactive materials, radionuclides, radon gas, mercury,
asbestos and polychlorinated biphenyls.

               “Indebtedness” of any Person means, without duplication, (i) the principal of and,
accreted value and accrued and unpaid interest in respect of (A) indebtedness of such Person for
money borrowed and (B) indebtedness evidenced by notes, debentures, bonds or other similar
instruments the payment of which such Person is responsible or liable; (ii) all obligations of such
Person issued or assumed as the deferred purchase price of property, all conditional sale
obligations of such Person and all obligations of such Person under any title retention agreement
(but excluding trade accounts payable and other accrued current liabilities; (iii) all obligations
of the type referred to in clauses (i) and (ii) of any Persons the payment of which such Person is
responsible or liable, directly or indirectly, as obligor, guarantor, surety or otherwise; and (iv)
all obligations of the type referred to in clauses (i) through (iii) of other Persons secured by
any Lien on any property or asset of such Person (whether or not such obligation is assumed by such
Person).

               “Indemnified Party” means the party entitled to indemnity under Article X.

               “Indemnifying Party” means party obligated to provide indemnification under
Article X.

               “Intellectual Property” means all Statutory Intellectual Property and all
Non-Statutory Intellectual Property.

               “IRS” means the United States Internal Revenue Service and, to the extent relevant,
the United States Department of Treasury.

               “Knowledge of Seller” concerning any particular subject, area or aspect of the
Business or otherwise shall mean (i) the actual knowledge of each of the Persons listed on
Schedule 1.1(iii) and (ii) all knowledge which was or should have been obtained upon
reasonable inquiry by such Persons.

               “Law” means any foreign, federal, state or local law (including common law), statute,
code, ordinance, rule or regulation.

4

 

               “Legal Proceeding” means any judicial, administrative or arbitral actions, suits or
proceedings (public or private) by or before a Governmental Body.

               “Liability” means any debt, liability or obligation (whether direct or indirect,
absolute or contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due),
and including all costs and expenses relating thereto.

               “Lien” means (i) any lien, encumbrance, pledge, mortgage, deed of trust, security
interest, claim, lease, charge, option, right of first refusal or easement and (ii) except with
respect to Tower Site Leases, any other declaration, covenant, condition, restriction or servitude.

               “Loan Documents” means the Note, the Copyright Security Agreement, the Patent Security
Agreement, and the Trademark Security Agreement.

               “Material Adverse Effect” means an effect, event, development, change, occurrence or
state of facts which (i) is materially adverse to the Business, Assets, properties, financial
condition, or results of operations of Seller, or (ii) prevents or materially impedes, impairs or
hinders the consummation by Seller of the transactions contemplated by this Agreement, in each
case, other than any effect, event, development, change, occurrence or state of facts arising out
of or resulting from (A) general changes or conditions in the U.S. economy or securities or
financial markets, (B) changes or conditions affecting the industries in which Seller operates (but
only to the extent that the impact of such changes or conditions on Seller is not materially
disproportionate to the impact on other Persons conducting business in such industries), (C)
changes in Law or GAAP (but only to the extent that the impact of such changes on Seller is not
materially disproportionate to the impact on other Persons conducting business in the industries in
which Seller conducts business), (D) the occurrence of any war, sabotage, armed hostilities or acts
of terrorism or any escalation or material worsening of any such war, sabotage, armed hostilities
or acts of terrorism existing or underway as of the date hereof (but only to the extent that the
impact of such changes on Seller is not materially disproportionate to the impact on other Persons
conducting business in the industries in which Seller conducts business), (E) any action taken by
Purchaser or any of its Affiliates in bad faith or in contravention of the terms of this Agreement,
or (F) the announcement of this Agreement, compliance with the terms of this Agreement, or the
consummation of the transactions contemplated by this Agreement (except with respect to the loss of
employees or customers arising therefrom).

               “Non-Statutory Intellectual Property” means un-patented inventions (whether or not
patentable), trade secrets, know-how and proprietary information, including, but not limited to,
(in whatever form or medium), discoveries, ideas, compositions, formulas, database, drawings,
designs, plans, proposals, specifications, samples, models, processes, procedures, data,
information, manuals, reports, financial, marketing and business data and plans, customer lists,
supplier lists, pricing and cost information, and correspondence and notes, and any rights or
licenses in the foregoing that may be granted without the payment of compensation or other
consideration to any Person; provided, however, that the definition of
“Non-Statutory Intellectual Property” shall not include “Statutory Intellectual Property.”

               “Order” means any order, directive, injunction, judgment, decree, ruling, writ,
assessment or arbitration award of a Governmental Body.

5

 

               “Ordinary Course of Business” means the ordinary and usual course of normal day to day
operations of the Business, as conducted by Seller consistent with its past practice.

               “Patents” means all patents and patent applications, including, but not limited to,
reissuances, continuations, continuations-in-part, revisions, extensions, and reexaminations
thereof, and all inventions, patent or invention disclosures and improvements thereto described in
the patents and patent applications.

               “Permits” means any approvals, authorizations, consents, licenses, permits or
certificates of a Governmental Body.

               “Permitted Exceptions” means (i) statutory liens for current Taxes, assessments or
other governmental charges not yet delinquent; (ii) mechanics’, carriers’, workers’, repairers’ and
similar Liens arising or incurred in the Ordinary Course of Business; (iii) zoning, entitlement and
other land use and environmental regulations by any Governmental Body which would not result in a
Material Adverse Effect; or (iv) valid title of a lessor under a capital or operating lease.

               “Person” means any individual, corporation, partnership, limited liability company,
firm, joint venture, association, joint-stock company, trust, unincorporated organization,
Governmental Body or other entity.

               “Products” means any and all products developed, manufactured, marketed or sold by
Seller in respect of the Business.

               “Purchased Contracts” means all Contracts of Seller related to the Business as of the
Closing Date, including the Licensed Intellectual Property and the AVL Contracts, other than
Excluded Contracts.

               “Purchaser Designee” means one or more entities that are, by written notice given from
time to time by Purchaser to Seller, designated by Purchaser to be the transferee and/or lessee of
any of the FCC Licenses.

               “Release” means any spilling, leaking, pumping, pouring, emitting, emptying,
discharging, injecting, escaping, leaching, dumping, or disposing into the environment (including
the abandonment or discarding of barrels, containers, and other closed receptacles containing any
hazardous substance or pollutant or contaminant).

               “Retained Real Property” means all real property and interests in real property owned
in fee by Seller or leased by Seller, except for the Tower Site Leases.

               “Software” means, except to the extent generally available for purchase from a third
party, all (i) computer programs, including all software implementations of algorithms, models and
methodologies, whether in source code or object code; and (ii) databases and compilations,
including all data and collections of data, whether machine readable or otherwise.

               “Statutory Intellectual Property” means all (i) United States of America and foreign
Patents and applications for Patents of any kind, (ii) United States of America, state or

6

 

foreign
Trademark registrations or applications for Trademarks of any kind, and (iii) United States and
foreign Copyright registrations or applications for Copyrights of any kind.

               “Subsidiary” means any Person of which a majority of the outstanding share capital,
voting securities or other voting equity interests are owned, directly or indirectly, by Seller.

               “Tax” or “Taxes” means (i) any and all federal, state, local, foreign or other
taxes, charges, fees, imposts, levies or other assessments, including all net income, gross income,
gross receipts, capital, sales, use, ad valorem, value added, transfer, franchise, profits,
inventory, capital stock, license, withholding, payroll, employment, social security, unemployment,
excise, severance, stamp, occupation, property and estimated taxes, customs duties, fees,
assessments and charges of any kind whatsoever, whether computed on a separate, consolidated,
unitary or combined basis; and (ii) all interest, penalties, fines, additions to tax or additional
amounts imposed by any Taxing Authority in connection with any item described in clause (i). For
purposes of this Agreement, Tax payments shall be deemed past due if not paid by the due date
thereof, whether or not such Tax is being contested in good faith by appropriate proceedings.

               “Tax Return” means any return, report or statement required to be filed with respect
to any Tax (including any attachments thereto, and any amendment thereof), including any
information return, claim for refund, amended return or declaration of estimated Tax, and
including, where permitted or required, combined, consolidated or unitary returns for any group of
entities that includes Seller, any of the Subsidiaries, or any of their Affiliates.

               “Taxing Authority” means the IRS and any other Governmental Body responsible for the
administration of any Tax.

               “Trademarks” means all (i) registered and un-registered trademarks, tradenames,
service marks, domain names, slogans, geographical indications, trade dress, trademark designs,
logos, corporate names, (ii) applications for registrations of any of the foregoing, (iii) renewals
of any registrations, and (iv) all goodwill associated therewith.

               “Transfer Documents” means the Bill of Sale, the Assignment and Assumption Agreement
and the Instrument of Assignment.

               “WARN Act” means the Worker Adjustment and Retraining Notification Act of 1988, as
amended, and the rules and regulations promulgated thereunder.

          1.2 Terms Defined Elsewhere in this Agreement

	 	 	 	 	 
	Term	 	Section
	Access Agreement

	 	 	9.1	(w)
	Accounts Receivable

	 	 	2.1	(d)
	Agreed Principles

	 	 	3.2	(a)
	Agreement

	 	 	Preamble

	Assignment and Assumption Agreement

	 	 	9.1	(p)
	Assignment Applications

	 	 	7.5	(a)

7

 

	 	 	 	 	 
	Term	 	Section
	Assumed Liabilities

	 	 	2.3	 
	Balance Sheets

	 	 	5.4(a)	
	Balance Sheet Date

	 	 	5.4(a)	
	Basket

	 	 	10.5(a)	
	Bill of Sale

	 	 	9.1(o)	
	Business Intellectual Property

	 	 	5.9(a)	
	Business Software

	 	 	5.9(a)	
	Calculation Notice

	 	 	3.2(c)	
	Cap

	 	 	10.5(a)	
	Cash Consideration

	 	 	3.1	 
	Clinton Sub-Lease Agreement

	 	 	9.1(u)	
	Closing

	 	 	4.1	 
	Closing Balance Sheet

	 	 	3.2(a)	
	Closing Date

	 	 	4.1	 
	Closing Net Current Assets

	 	 	3.2(a)	
	Closing Outstanding Checks

	 	 	3.3	 
	Communications Act

	 	 	5.3(b)	
	Confidential Information

	 	 	7.7(b)	
	Confidentiality Agreement

	 	 	7.7(a)	
	Contracts Security Agreement

	 	 	9.1(m)	
	Copyright Assignment

	 	 	9.1(q)	
	Copyright Security Agreement

	 	 	9.1(j)	
	Demand

	 	 	10.4(c)	
	Dispute

	 	 	10.4(b)	
	Dispute Notice

	 	 	10.4(b)	
	Employee Benefit Plan

	 	 	5.22(a)	
	Excluded Assets

	 	 	2.2	 
	Excluded Contracts

	 	 	2.2(a)	
	Excluded Liabilities

	 	 	2.4	 
	FCC

	 	 	5.3(b)	
	FCC Consent

	 	 	7.5(a)	
	FCC Licenses Closing

	 	 	7.5(c)	
	FCC Licenses Closing Date

	 	 	7.5(c)	
	Final Balance Sheet

	 	 	3.2(d)	
	Foreign Ownership Application

	 	 	7.5(a)	
	Harmful Code

	 	 	5.9(f)	
	Independent Accountant

	 	 	3.2(d)	
	Initial Calculation

	 	 	3.2(b)	
	Instrument of Assignment

	 	 	9.1(x)	
	Inventory

	 	 	2.1(c)	
	Jackson Lease Assignment Agreement

	 	 	9.1(v)	
	Jackson Sub-Lease Agreement

	 	 	9.1(v)	
	Lender Consents

	 	 	7.6	 
	License Agreement

	 	 	9.1(t)	
	Licensed Intellectual Property

	 	 	5.9(a)	

8

 

	 	 	 	 	 
	Term	 	Section
	Loss or Losses

	 	 	10.2	 
	Material Contracts

	 	 	5.7(a)	
	Material Customers

	 	 	5.14(a)	
	Material Suppliers

	 	 	5.14(b)	
	Net Current Assets

	 	 	3.2(a)	
	Neutral Accounting Firm

	 	 	2.7(a)	
	Non-Accepting Employees

	 	 	8.1(a)	
	Non-Employee

	 	 	8.1(a)	
	Nonassignable Assets

	 	 	2.5(b)	
	Note

	 	 	3.1	 
	Pager Agreement

	 	 	9.1(u)	
	Patent Assignment

	 	 	9.1(s)	
	Patent Security Agreement

	 	 	9.1(l)	
	Personal Property Leases

	 	 	5.19	 
	Pledge Agreement

	 	 	9.1(n)	
	Post-Closing Covenants

	 	 	10.1(b)	
	PP&E

	 	 	2.1(f)	
	Pre-Closing Covenants

	 	 	10.1(b)	
	Price Allocation

	 	 	2.7(a)	
	Property Taxes

	 	 	2.8(a)	
	Purchased Assets

	 	 	2.1	 
	Purchaser

	 	 	Preamble

	Purchaser Documents

	 	 	6.2	 
	Purchaser Indemnified Parties

	 	 	10.2	 
	Purchaser Plans

	 	 	8.2(a)	
	Purchaser Savings Plan

	 	 	8.2(c)	
	Qualified Plan

	 	 	5.22(b)	
	Reimbursed Liabilities

	 	 	3.3	 
	Reimbursement Payment

	 	 	3.3	 
	Seller

	 	 	Preamble

	Seller Disclosure Schedule

	 	 	Article V

	Seller Documents

	 	 	5.2	 
	Seller Indemnified Parties

	 	 	10.3	 
	Shortfall Cash Amount

	 	 	3.4	 
	Shortfall Target

	 	 	3.4	 
	Short Term Lease

	 	 	7.5(d)	
	Sister Company

	 	 	7.5(a)	
	Sister Subsidiary

	 	 	7.5(a)	
	Solicit

	 	 	7.10(c)	
	Standard Procedure

	 	 	8.1(d)	
	Subcontract for GSA Agreement

	 	 	9.1(y)	
	Substantive Indication

	 	 	7.5(a)	
	Survival Period

	 	 	10.1(b)	
	Target Amount

	 	 	3.2(a)	
	Termination Date

	 	 	4.2(a)	

9

 

	 	 	 	 	 
	Term	 	Section
	Third Party Claim

	 	 	10.4(a)	
	Tower Site Leases

	 	 	5.18(a)	
	Trademark Assignment

	 	 	9.1(r)	
	Trademark Security Agreement

	 	 	9.1(k)	
	Transfer Applications

	 	 	7.5(a)	
	Transfer Taxes

	 	 	7.11	 
	Transferred Employees

	 	 	8.1(a)	
	Transferred Employees List

	 	 	8.1(a)	
	Transition Services Agreement

	 	 	9.1(z)	

          1.3 Other Definitional and Interpretive Matters

               (a) Unless otherwise expressly provided, for purposes of this Agreement, the following rules
of interpretation shall apply:

               Calculation of Time Period. When calculating the period of time before which, within
which or following which, any act is to be done or step taken pursuant to this Agreement, the date
that is the reference date in calculating such period shall be excluded. If the last day of such
period is a non-Business Day, the period in question shall end on the next succeeding Business Day.

               Dollars. Any reference in this Agreement to $ shall mean U.S. dollars.

               Exhibits/Schedules. The Exhibits and Schedules to this Agreement are hereby
incorporated and made a part hereof and are an integral part of this Agreement. No disclosure on a
Schedule relating to a possible breach or violation of any Contract, Law or Order shall be
construed as an admission or indication that breach or violation exists or has actually occurred.
Any capitalized terms used in any Schedule or Exhibit but not otherwise defined therein shall be
defined as set forth in this Agreement.

               Gender and Number. Any reference in this Agreement to gender shall include all
genders, and words imparting the singular number only shall include the plural and vice versa.

               Headings. The provision of a Table of Contents, the division of this Agreement into
Articles, Sections and other subdivisions and the insertion of headings are for convenience of
reference only and shall not affect or be utilized in construing or interpreting this Agreement.
All references in this Agreement to any “Section” or “Schedule” are to the corresponding Section or
Schedule of this Agreement unless otherwise specified.

               Herein. The words such as “herein,” “hereinafter,” “hereof,”
and “hereunder” refer to this Agreement as a whole and not merely to a subdivision in which
such words appear unless the context otherwise requires.

               Including. The words “including,” “includes” or any variation thereof
shall be deemed to be followed by “but is not limited to and without limitation” and shall
not be

10

 

construed to limit any general statement that it follows to the specific or similar items or
matters immediately following it.

               Reflected On or Set Forth In. An item arising with respect to a specific
representation or warranty shall be deemed to be “reflected on” or “set forth in” a
balance sheet or financial statements, to the extent any such phrase appears in such representation
or warranty, if (a) there is a reserve, accrual or other similar item underlying a number on such
balance sheet or financial statements that related to the subject matter of such representation,
(b) such item is otherwise specifically set forth on the balance sheet or financial statements or
(c) such item is reflected on the balance sheet or financial statements and is specifically set
forth in the notes thereto.

               (b) The parties hereto have participated jointly in the negotiation and drafting of this
Agreement and, in the event an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as jointly drafted by the parties hereto and no presumption or burden
of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provision
of this Agreement.

ARTICLE II

PURCHASE AND SALE OF ASSETS; ASSUMPTION OF LIABILITIES

          2.1
Purchase and Sale of Assets. On the terms and subject to the conditions set forth
in this Agreement, at the Closing, Purchaser (or, with respect only to the FCC Licenses, the Sister
Subsidiary or other Purchaser Designee) shall purchase, acquire and accept from Seller, and Seller
shall sell, transfer, assign, convey and deliver to Purchaser or to the Sister Subsidiary or other
Purchaser Designee all of the “Purchased Assets,” consisting of all of the assets,
properties, rights, and interests wherever situated and of any kind or nature whatsoever owned by
Seller as of the Closing Date and used directly or indirectly in the operation of the Business,
other than the Excluded Assets. The Purchased Assets shall be transferred to Purchaser or, with
respect only to the FCC Licenses, to the Sister Subsidiary or other Purchaser Designee by Seller
free and clear of all Liens other than Permitted Exceptions. The “Purchased Assets”
include each of the following assets:

               (a) Final Balance Sheet. All property (including real and personal property, whether
tangible or intangible, and claims, rights and choses in action), rights, and interests of the
Business set forth or reflected on the Final Balance Sheet (except the Excluded Assets);

               (b) Contracts. All rights of Seller under the Purchased Contracts and all claims or
causes of action with respect to the Purchased Contracts;

               (c) Inventory. All inventory used or intended to be used primarily in connection with
the Business, including all raw materials, work in process and finished goods (the
“Inventory”);

               (d) Accounts Receivable. All accounts receivable and any evidence thereof relating
to or arising out of the Business and operation thereof, and any payments received with respect
thereto after the Closing Date (including cash or check payments in transit on the Closing

11

 

Date)
(collectively, “Accounts Receivable”). Schedule 2.1(d) sets forth an itemized list
of the Accounts Receivable as of March 26, 2008, and shall be updated as of the day immediately
preceding the Closing Date, identifying such Accounts Receivable by obligor’s name, aging and
amount;

               (e) Prepaid Expenses and Deposits. All deposits (including customer deposits and
security deposits for rent, electricity, telephone or otherwise) and prepaid charges and expenses,
including any prepaid rent, of Seller related to any of the Purchased Assets other than prepaid
charges, expenses and rent under Personal Property Leases that is attributable to any period
beginning prior to and ending on or before the Closing Date;

               (f) Property, Plant, and Equipment. All equipment, assets in construction, office
furniture and fixtures, computer equipment, office equipment, other furnishings, trucks,
automobiles and other vehicles, supplies, and other tangible personal property of every kind and
description, including tooling, wherever located (collectively, “PP&E”), used primarily in
the Business and including all PP&E located in Jackson, Mississippi as of the date hereof, other
than such PP&E which is an Excluded Asset;

               (g) Leased Tangible Property. All of the leased tangible personal property, including
those set forth in Schedule 2.1(g), which includes all prepayments, security deposits and
options to renew or purchase in connection therewith;

               (h) Business Records. All Documents used in the Business, including Documents in
Seller’s possession relating to products, services, marketing, advertising, promotional materials,
Business Intellectual Property, and all files, customer files and documents (including credit
information), supplier lists, records, literature and correspondence, whether or not physically
located on any of the premises currently used by the Business, but excluding such files as may be
required under applicable Law regarding privacy;

               (i) FCC Licenses. All FCC Licenses, to the extent transferable to Purchaser or the
Sister Subsidiary or other Purchaser Designee or to the extent otherwise dealt with in this
Agreement;

               (j) Other Permits. All other Permits used by Seller in the Business to the extent
transferable to Purchaser or a Purchaser Designee;

               (k) Non-Disclosure, Confidentiality, Non-Compete, and Similar Agreements. All rights
of Seller under non-disclosure or confidentiality, non-compete, or non-solicitation agreements with
Employees or with third parties to the extent primarily relating to the Business or the Purchased
Assets, including those agreements set forth on Schedule 2.1(k), except to the extent that
such transfer of rights would violate the express terms of such agreements;

               (l) Warranties and Guarantees. All of Seller’s interest in rights under or pursuant
to all warranties, representations and guarantees, if any, made by vendors, suppliers,
manufacturers and contractors relating to the Business or affecting the Purchased Assets;

12

 

               (m) Intellectual Property. All Business Intellectual Property other than (i) such
Business Intellectual Property that is Licensed Intellectual Property and (ii) those items of
Business Intellectual Property set forth on Schedule 2.2(l);

               (n) Software. All Business Software other than such Business Software that is
Licensed Intellectual Property;

               (o) Third Party Insurance Proceeds. All third-party property and casualty insurance
proceeds, and all rights to third-party property and casualty insurance proceeds, in each case to
the extent received or receivable in respect of the Business;

               (p) Forms. All stationery, forms, labels, shipping material, art work, and
photographs, in each case, except to the extent incorporating any Excluded Marks;

               (q) Claims. All of Seller’s causes of action, claims, credits, demands or rights of
set-off against third parties, to the extent related to the Business, except to the extent related
to any Excluded Asset;

               (r) Funded Compensation Rights. All rights (including experience ratings, to the
extent transferable to Purchaser) with respect to unemployment and workers’ compensation, in each
case, relating to Transferred Employees;

               (s) Communications. All rights to the telephone and facsimile numbers used in the
Business, as well as all rights to receive mail and other communications addressed to Seller and
relating to the Business (including mail and communications from customers, suppliers,
distributors, agents and others and payments with respect to the Purchased Assets);

               (t) Lockboxes. All rights to the lockbox accounts used primarily in the Business as
set forth in Schedule 2.1(t);

               (u) Goodwill. All goodwill of the Business; and

               (v) Other Assets. Any asset of Seller of a type not described by the foregoing
clauses of this Section 2.1 that are necessary for the operation of the Business in a
manner consistent with past practice of Seller since February 1, 2007.

          2.2
Excluded Assets. Nothing herein contained shall be deemed to sell, transfer, assign
or convey the Excluded Assets to Purchaser, and Seller shall retain all right, title and interest
to, in and under the Excluded Assets. “Excluded Assets” shall mean each of the following
assets:

               (a) Excluded Contracts. All rights of Seller under the Contracts set forth on
Schedule 2.2(a), including all claims or causes of action with respect thereto (the
“Excluded Contracts”).

               (b) Cash and Cash Equivalents. All cash, cash equivalents, bank deposits or similar
cash items of Seller, except to the extent otherwise provided in Section 3.4;

13

 

               (c) Stock Certificates; Subsidiaries. All shares of capital stock of, or other
ownership interests in the Subsidiaries, and all assets owned, leased or held by the Subsidiaries
except for any assets used primarily in the Business;

               (d) Real Property. All Retained Real Property;

               (e) Corporate Books. All minute books, organizational documents, stock registers and
such other books and records of Seller or any Subsidiary as pertain to ownership, organization or
existence of Seller and each Subsidiary;

               (f) Additional Books and Records. Any (i) books and records that Seller and the
Subsidiaries are required by Law to retain or that Seller determines are necessary or advisable to
retain; provided, however, that Purchaser shall have the right to make copies of
any portions of such retained books and records that relate to the Business or any of the Purchased
Assets; and (ii) documents relating to proposals to acquire the Business by Persons other than
Purchaser;

               (g) Tax Refunds. All interests in or rights to any refund of Taxes, Tax credits or
Tax loss carryforwards relating to the operation of the Business, the Purchased Assets or the
Assumed Liabilities, or applicable to, any period, or any portion of any period, ending on or
before the Closing Date;

               (h) Tax Records. All Tax returns of Seller and the Subsidiaries and the Business and
all records (including working papers) related thereto;

               (i) Claims Related to Excluded Assets. All of Seller’s causes of action, claims,
counterclaims, credits, demands or rights of set-off against third parties to the extent related to
any Excluded Asset;

               (j) Seller’s Rights Under This Agreement. All rights that accrue to Seller under this
Agreement and the Seller Documents;

               (k) Employee Benefit Plans. All Employee Benefit Plans and any assets relating to
such plans;

               (l) Intellectual Property. Those items of Business Intellectual Property set forth on
Schedule 2.2(l); and

               (m) Other Assets. Such other assets as are set forth on Schedule 2.2(m).

          2.3 Assumption of Liabilities

               On the terms and subject to the conditions set forth in this Agreement, at the Closing
Purchaser shall assume, effective as of the Closing, and shall timely perform, pay and discharge in
accordance with their respective terms, only the Liabilities of Seller set forth below in this
Section 2.3, other than the Excluded Liabilities (collectively, the “Assumed
Liabilities”), consisting only of the following Liabilities:

14

 

               (a) Liabilities of Seller for performance under the Purchased Contracts after the Closing
Date, except for any performance that was required prior to the Closing pursuant to the terms of
the Purchased Contracts;

               (b) all accounts payable existing on the Closing Date and incurred in the Ordinary Course of
the Business (including, for the avoidance of doubt, (i) invoiced accounts payable and (ii) accrued
but uninvoiced accounts payable); and Seller shall, no less than five Business Days prior to the
Closing Date, deliver to Purchaser Seller’s good faith list of same as anticipated to exist on the
Closing Date; provided, however, that such accounts payable shall be Assumed
Liabilities only to the extent the amount thereof is shown in the Closing Net Current Assets and is
expressly taken into account in the calculation of any adjustment to the Purchase Price pursuant to
Section 3.2;

               (c) all Taxes to be paid by Purchaser pursuant to Section 7.11;

               (d) all accrued vacation, sick pay or personal day payment obligations of Seller as of the
Closing Date with respect to Transferred Employees; provided, however, that such
obligations shall be Assumed Liabilities only to the extent the amount thereof is shown in the
Closing Net Current Assets and is expressly taken into account in the calculation of any adjustment
to the Purchase Price pursuant to Section 3.2;

               (e) Liabilities for warranty claims, if any, first made after the first anniversary of the
Closing Date for the return by any customer of Seller of products sold or distributed by Seller on
or prior to the Closing Date; provided, however, that in no event shall the Assumed
Liabilities include any Liabilities for warranty claims based upon, attributable to or resulting
from (i) anything other than Seller’s usual and customary express written warranty, or (ii) any
implied warranty arising due to statements or conduct of Seller or Seller’s employees or agents;
and

               (f) all other Liabilities of the Business (other than Taxes) shown on the Final Balance Sheet;
provided, however, that such Liabilities shall be Assumed Liabilities only to the
extent the amount thereof is shown in the Closing Net Current Assets and is expressly taken into
account in the calculation of any adjustment to the Purchase Price pursuant to Section 3.2.

          2.4
Excluded Liabilities. Purchaser will not assume, or be liable for, any liabilities
which are not Assumed Liabilities. All such liabilities which are not Assumed Liabilities shall be
referred to as “Excluded Liabilities,” all of which Seller shall retain and remain liable
for (whether such Excluded Liabilities are known or unknown, absolute, contingent, liquidated or
unliquidated, due or to become due, and whether claims with respect thereto are asserted before or
after the Closing). Notwithstanding anything to the contrary contained in Section 2.3 and
without any implied increase in any of the Assumed Liabilities, Excluded Liabilities shall include
each of the following Liabilities:

               (a) any and all Liabilities of and/or on behalf of Seller for costs and expenses incurred in
connection with this Agreement or the negotiation and consummation of the transactions contemplated
by this Agreement;

15

 

               (b) any and all Liabilities under Contracts with any officer, director or Affiliate of Seller
who is a Non-Accepting Employee;

               (c) any and all employee-related Liabilities of Seller accrued or arising out of actions,
omissions or events occurring prior to or on the Closing Date, including (i) accrued salaries and
wages, (ii) accrued payroll Taxes, (iii) withholdings, (iv) charges of unfair labor practices, and
(v) discrimination complaints, but not including accrued vacation and sick pay to the extent
assumed under Section 2.3;

               (d) any and all Liabilities of Seller for the provision of health plan continuation coverage
in accordance with the requirements of COBRA and Sections 601 through 608 of ERISA with respect to
Non-Accepting Employees;

               (e) any and all Liabilities owed to, or claims of, Seller’s creditors, whether arising on,
prior to or after the Closing Date, which may be asserted against Purchaser or any of the Purchased
Assets pursuant to any applicable bulk sales, bulk transfer or similar laws and which do not
otherwise constitute Assumed Liabilities;

               (f) any and all Liabilities under any intercompany loans, accounts or Contracts between the
Business, on the one hand, and Seller or any of its Affiliates, on the other hand;

               (g) any and all Liabilities relating to litigation (i) involving the Business, the Purchased
Assets or Seller and existing as of the Closing Date, or (ii) to the extent arising out of or
resulting from the Excluded Assets or Excluded Liabilities or from events, facts or circumstances
occurring or existing on or prior to the Closing Date;

               (h) any and all Liabilities of Seller arising by reason of any violation of any Law or any
requirement of any Governmental Body, including all Liabilities arising from, related to or in
connection with FCC enforcement actions, in each case, to the extent such Liability results from or
arises out of events, facts or circumstances occurring or existing on or prior to the Closing Date;

               (i) any and all Liabilities relating to or arising out of Excluded Assets, including Excluded
Contracts;

               (j) any and all Taxes arising from or with respect to the Purchased Assets or the operation of
the Business that are incurred in or attributable to any period, or any portion of any period,
ending on or prior to the Closing Date, and income and similar Taxes, of a type not described in
Section 7.11, that are imposed as a result of the sale of the Purchased Assets pursuant to
this Agreement (except, in any case, as otherwise provided in this Agreement);

               (k) any Liabilities of Seller for Indebtedness;

               (l) all sales and use taxes, other than pursuant to Section 7.11, if any;

               (m) any and all Liabilities of Seller under any Contract, other than the Purchased Contracts,

16

 

               (n) any and all Liabilities of Seller under any Contract or Permit arising out of a breach or
alleged breach thereof by Seller on or prior to the Closing Date;

               (o) any and all Liabilities of Seller arising by reason of any violation or alleged violation
of any Law or any requirement of any Governmental Body on or prior to the Closing Date;

               (p) any and all Liabilities relating to or arising out of claims or causes of action with
respect to any Purchased Contract except those Liabilities assumed under Section 2.3(a);

               (q) any and all Liabilities (A) arising during the one year period commencing on the Closing
Date, including Liabilities for claims made but not paid or resolved prior to the first anniversary
of the Closing Date, for the return by any customer of Seller of products sold or distributed by
Seller on or prior to the Closing Date, or (B) for warranty claims based upon, attributable to or
resulting from (i) anything other than Seller’s usual and customary express written warranty, or
(ii) any implied warranty arising due to statements or conduct of Seller or Seller’s employees or
agents; except, in each case under (A) or (B) of this subparagraph, to the extent that Purchaser
elects to satisfy such Liabilities using standards consistent with Seller’s past practice relating
to the Business regarding warranty claims, in which event Seller shall promptly reimburse Purchaser
for the costs incurred by Purchaser;

               (r) any and all Liabilities of Seller arising out of the injury to or death of any person or
animal or damage to or destruction of any tangible property, whether based on negligence, breach of
warranty, strict liability, enterprise liability or any other legal or equitable theory arising
from or related to products (or parts or components thereof) sold, distributed or otherwise
disposed of or services performed by or on behalf of Seller, in each case, on or prior to the
Closing Date;

               (s) any and all Liabilities of Seller for severance pay or the like with respect to any
Employee; and

               (t) any and all Liabilities of Seller for salaries, commissions, bonuses, deferred
compensation or like payments (other than accrued but unused vacation, sick days, or personal days
with respect to Transferred Employees to the extent assumed under Section 2.3) to any
Employee for the period prior to the Closing.

               Notwithstanding any provisions in this Agreement to the contrary, Purchaser is assuming only
the Assumed Liabilities and is not assuming any other Liability of Seller or its Subsidiaries (or
any predecessor owner of all or part of the Business) of whatever nature. All such other
Liabilities shall be retained by and remain Liabilities and obligations of Seller.

          2.5 Further Conveyances and Assumptions; Consent of Third Parties.

               (a) From time to time after the Closing, Seller and Purchaser shall execute, acknowledge and
deliver all such further conveyances, notices, assumptions, releases and acquittances and such
other instruments, and shall take such further actions, as may be reasonably necessary or
appropriate to assure fully to Purchaser and its successors or assigns, all

17

 

of the rights, titles and interests intended to be conveyed to Purchaser under this Agreement
and the Transfer Documents and to assure fully to Seller and its Affiliates and their successors
and assigns, the assumption of the liabilities and obligations intended to be assumed by Purchaser
under this Agreement and the Transfer Documents, and to otherwise make effective as promptly as
practicable the transactions contemplated hereby and thereby.

               (b) Nothing in this Agreement nor the consummation of the transactions contemplated hereby
shall be construed as an attempt or agreement to assign any Purchased Asset, including any
Contract, Permit, certificate, approval, authorization or other right, which by its terms or by Law
is nonassignable without the consent of a third party or a Governmental Body or is cancelable by a
third party in the event of an assignment (“Nonassignable Assets”) unless and until such
consent shall have been obtained; provided, however, that Seller shall use its
commercially reasonable efforts to cooperate with Purchaser at its request for up to 180 days after
the Closing Date in endeavoring to obtain such consents promptly; and provided further that Seller
shall not be obligated to pay any consideration therefor to any third party from whom consent is
requested unless expressly required by the terms of any Contract (excluding Tower Site Leases); and
that Seller shall promptly notify Purchaser of any request for payment of any such consideration.
Purchaser and Seller shall use their respective commercially reasonable efforts to obtain, or cause
to be obtained, any consent, substitution, approval or amendment required to novate all Liabilities
under any and all Purchased Contracts or other Liabilities that constitute Assumed Liabilities or
to obtain in writing the unconditional release of Seller and its Affiliates so that, in any such
case, Purchaser shall be solely responsible for such Liabilities.

          2.6
Bulk Sales Laws. Purchaser hereby waives compliance by Seller with the requirements
and provisions of any “bulk-transfer” Laws of any jurisdiction that may otherwise be
applicable with respect to the sale of any or all of the Purchased Assets to Purchaser; it being
understood that any Liabilities arising out of the failure of Seller to comply with the
requirements and provisions of any “bulk-transfer” Laws of any jurisdiction which would not
otherwise constitute Assumed Liabilities shall be treated as Excluded Liabilities.

          2.7 Purchase Price Allocation.

               (a) For all Tax purposes, the Purchase Price (plus any Assumed Liabilities that are treated as
consideration for the Purchased Assets) shall be allocated in the manner set forth in this
Section 2.7 (the “Price Allocation”). Purchaser shall prepare a proposed
allocation in a manner consistent with Section 1060 of the Code and the regulations promulgated
thereunder and shall deliver such proposal to Seller for its review and approval not later than
forty five (45) Business Days after the Closing Date. Seller shall have thirty (30) Business Days
after receipt of the proposed allocation to accept the proposed allocation, which acceptance shall
not be unreasonably withheld or delayed. If Seller fails to object in writing to Purchaser prior
to the end of such 30-day period, Seller shall be deemed to have accepted the proposed allocation.
If Seller does delivery written notice of its objection (which shall be accompanied by Seller’s
proposed modifications to the allocation) prior to the end of such 30-day period, and Purchaser and
Seller cannot agree on the allocation within twenty (20) Business Days of such objection and
proposed modifications, such dispute shall be settled, within thirty (30) Business Days of its
submission to an accounting firm mutually acceptable to Seller and Purchaser (“Neutral
Accounting Firm”), by the Neutral Accounting Firm, after which time the allocation determined

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by the Neutral Accounting Firm shall become the final Price Allocation. Purchaser and Seller
shall submit the dispute to the Neutral Accounting Firm within twenty (20) Business Days of receipt
by Purchaser of the modifications to which it objects. After determination of the final Price
Allocation, (i) each party agrees to timely file an IRS Form 8594 reflecting the Price Allocation
for the taxable year that includes the Closing Date and to make any timely filing required by
applicable state or local Law, (ii) such Price Allocation shall be binding on Purchaser and Seller
for all Tax reporting purposes, (iii) none of Purchaser or Seller or any of their respective
Affiliates shall take any position inconsistent with such Price Allocation in connection with any
Tax proceeding, except to the extent required by applicable Law, and (iv) if any Taxing Authority
disputes such Price Allocation, the party receiving notice of the dispute shall promptly notify the
other party hereto of such dispute, and the parties hereto shall cooperate in good faith in
responding to such dispute in order to preserve the effectiveness of such Price Allocation.

               (b) The Neutral Accounting Firm shall address only those issues in dispute, and may not assign
a value to any item that is (i) greater than the greatest value for such item claimed by either
Seller or Purchaser or (ii) lower than the lowest value claimed by either Seller or Purchaser. The
Neutral Accounting Firm’s determination shall be based only upon written submissions by Purchaser
and Seller, and not upon an independent review by the Neutral Accounting Firm. The parties shall
instruct the Neutral Accounting Firm that its decision shall be rendered within thirty (30)
Business Days of the referral of such matter thereto, and the decision of the Neutral Accounting
Firm shall be final and binding on all of the parties for the purposes of this Agreement, and such
decision shall set forth in writing any necessary revisions to the Price Allocation based on such
determination. The fees and expenses of the Neutral Accounting Firm shall be borne equally by
Seller and Purchaser.

               (c) Any indemnification payment treated as an adjustment to the Total Consideration paid for
the Purchased Assets under Article III shall be reflected as an adjustment to the
consideration allocated to a specific asset, if any, giving rise to the adjustment and if any such
adjustment does not relate to a specific asset, such adjustment shall be allocated among the
Purchased Assets in accordance with the Price Allocation method provided in this
Section 2.7.

          2.8 Allocation of Taxes and Expenses.

               (a) All state, county and local ad valorem Taxes on Purchased Assets (“Property
Taxes”) shall be prorated between Purchaser and Seller as of the Closing Date, computed by
multiplying the amount of Property Taxes for the fiscal year for which the same are levied by a
fraction, the numerator of which is the number of days in such fiscal year up to and including the
Closing Date, and the denominator of which is the number of days in such fiscal year. In
connection with such proration of Property Taxes, in the event that actual Property Tax figures are
not available at the Closing Date, proration of Property Taxes shall be based upon the actual
Property Taxes for the preceding fiscal year for which actual Property Tax figures are available,
and re-prorated when actual Property Tax figures become available. All utility charges, gas
charges, electric charges, water charges, water rents and sewer rents, if any, relating to the
Purchased Assets shall be apportioned between Purchaser and Seller as of the Closing Date, computed
on the basis of the most recent meter charges or, in the case of annual charges, on the basis of
the established fiscal year.

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               (b) After the Closing Date, Seller shall advise Purchaser, and Purchaser shall advise Seller,
of any such prorations, and the Purchase Price shall be increased or decreased, as applicable. In
the event the third party tax preparer used by Purchaser or Seller for Property Tax matters shall
receive bills after the Closing Date for expenses incurred before the Closing Date that were not
previously prorated in accordance with this Section 2.8, then such third party tax preparer
shall promptly notify Purchaser and Seller as to the amount of the expense subject to proration and
Purchaser and Seller shall cause the third party tax preparer to pay the entire expense (in which
case, each of Purchaser and Seller shall reimburse the third party tax preparer for its portion of
such expenses). No amounts due under this Section 2.8 by Purchaser or Seller shall be in
any way offset or withheld in respect of any claim for indemnification or otherwise under this
Agreement.

ARTICLE III

CONSIDERATION

          3.1 Consideration.

               Subject to the terms and conditions of this Agreement, in consideration of the aforesaid sale,
conveyance, assignment, transfer and delivery to Purchaser and/or a Purchaser Designee of the
Business and the Purchased Assets, at the Closing, (i) Purchaser shall and/or shall cause a
Purchaser Designee to deliver to an account designated by Seller an amount equal to Three Million
Dollars ($3,000,000.00) (the “Cash Consideration”), (ii) Purchaser shall deliver to Seller
a Note in the form of Exhibit A-1 (the “Note”) in the principal amount of Five
Million Dollars ($5,000,000.00) and (iii) Purchaser shall assume the Assumed Liabilities.

          3.2 Purchase Price Adjustment.

               (a) For the purposes of this Agreement, the amount of negative $1,596,886 is referred to as
the “Target Amount”. For purposes of this Agreement, the “Closing Balance Sheet”
means the consolidated assets and liabilities of the Business as of the Closing Date, in each case
solely comprised of Purchased Assets, Assumed Liabilities and Reimbursed Liabilities, and
determined in accordance with the accounting principles set forth on Schedule 3.2(a)(i)
(the “Agreed Principles”). For the avoidance of doubt, to the extent that the Agreed
Principles conflict with GAAP, the Agreed Principles shall be used to prepare the Closing Balance
Sheet. For purposes of this Agreement, “Closing Net Current Assets” means the amount
calculated with reference to the Closing Balance Sheet and in the manner set forth on Schedule
3.2(a)(ii).

               (b) Initial Calculation. As soon as practical (and in no event later than forty-five
(45) days after the Closing Date), Purchaser shall prepare and deliver to Seller a balance sheet of
the Business as of the Closing Date, setting forth the Closing Balance Sheet and Purchaser’s
calculation of the Closing Net Current Assets, determined in accordance with Section 3.2(a)
(together, the “Initial Calculation”), including such schedules and data with respect to
the determination of the Closing Net Current Assets as may be appropriate to support such Initial
Calculation.

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               (c) Calculation Notice. Within fifteen (15) days after delivery to Seller of the
Initial Calculation by Purchaser, Seller may deliver to Purchaser a written notice (the
“Calculation Notice”) either (i) advising Purchaser that Seller agrees with and accepts the
Initial Calculation or (ii) setting forth a detailed explanation of those items in the Initial
Calculation that Seller disputes and, to the extent possible, a statement, with reasonable detail
as to the disputed matters, of what Seller believes is the correct calculation of the Closing Net
Current Assets. If Seller does not submit a Calculation Notice within such 15 day period, then the
Initial Calculation shall become final and shall not be subject to further review, challenge or
adjustment, absent fraud. If Seller submits a Calculation Notice with such 15 day period, and (x)
Purchaser shall concur with the Calculation Notice, or (y) Purchaser does not object to the
Calculation Notice in a writing delivered to Seller within fifteen (15) days after Purchaser’s
receipt of the Calculation Notice, then the calculation of the Closing Net Current Assets set forth
in the Calculation Notice shall become final and shall not be subject to further review, challenge
or adjustment, absent fraud.

               (d) If Purchaser objects to any of the revisions set forth in the Calculation Notice,
Purchaser and Seller will attempt to resolve such matters in good faith. In the event that Seller
and Purchaser are unable to resolve any disputes regarding the Closing Net Current Assets within
ten (10) days after the date Purchaser objects to the Calculation Notice, then Seller and Purchaser
shall promptly thereafter cause an independent accounting firm as they shall mutually select (the
“Independent Accountant”) to review this Agreement and the disputed items or amounts for
the purpose of calculating Closing Net Current Assets (it being understood that in making such
calculation, the Independent Accountant shall be functioning as an expert and not as an
arbitrator). Each party agrees to execute, if requested by the Independent Accountant, an
engagement letter containing terms that are reasonably requested by the Independent Accountant.
Purchaser and Seller shall cooperate with the Independent Accountant and promptly provide all
documents and information requested by the Independent Accountant. In making such calculation, the
Independent Accountant shall consider only those items or amounts in the Initial Calculation as to
which Seller has disagreed in its Calculation Notice and shall not review any but the disputed
items and shall not determine an amount for any disputed item that is outside the range that is in
dispute for that item. The Independent Accountant shall deliver to Purchaser and Seller, as
promptly as practicable (but in any case no later than forty-five (45) days after the date of
engagement of the Independent Accountant), a report setting forth such calculation. Such report
shall be final and binding upon Purchaser and Seller, shall be deemed a final arbitration award
that is binding on Purchaser and Seller, and neither Purchaser nor Seller shall seek further
recourse to courts or other tribunals, other than to enforce such report. Judgment may be entered
to enforce such report in any court of competent jurisdiction. Each of Purchaser and Seller shall
pay one-half of the cost of the Independent Accountant’s review and report. The balance sheet of
the Business setting forth the Closing Net Current Assets and as determined in accordance with the
Agreed Principles, as finally determined pursuant to the procedures set forth above, is herein
referred to as the “Final Balance Sheet.”

               (e) Purchaser and Seller shall, and shall cause their respective representatives to, cooperate
and assist in the preparation of the Initial Calculation and the calculation of Closing Net Current
Assets and in the conduct of the review referred to in this Section 3.2, including the
making available to the extent necessary of books, records, work papers and personnel.

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               (f) If the Closing Net Current Assets, as finally determined, is greater than the Target
Amount then Purchaser shall pay to Seller the amount of such difference. If the Closing Net
Assets, as finally determined, is less than the Target Amount then Seller shall pay to Purchaser
the amount of such shortfall. Notwithstanding the foregoing, no payments shall be made pursuant to
this Section 3.2(f) to the extent that the difference between the Closing Net Current
Assets, as finally determined and the Target Amount is equal to or less than $5,000.

               (g) Any payment pursuant to Section 3.2(f) shall be made at a mutually convenient time
and place within five (5) Business Days after the Closing Net Current Assets have been finally
determined by wire transfer by Purchaser or Seller, as the case may be, of immediately available
funds to the account of such other party as may be designated in writing by such other party. The
amount of any payment to be made pursuant to this Section 3.2 shall bear interest from and
including the Closing Date to but excluding the date of payment at a rate per annum equal to the
“prime rate” as published in the “money rates” (or similar) section of The Wall Street Journal on
the date of payment calculated on the basis of the number of days elapsed from the Closing Date to
the date of payment.

          3.3 Reimbursed Liabilities.

               Purchaser has agreed to reimburse Seller for certain liabilities of the Business set forth on
Schedule 3.3 (the “Reimbursed Liabilities”). Within three (3) Business Days after
the Closing Date, Seller will prepare and deliver, or cause to be prepared and delivered, to the
Purchaser a statement of the Reimbursed Liabilities. Such statement shall describe in reasonable
detail the amount and basis for calculation of the Reimbursed Liabilities, and Seller shall
promptly make available to Purchaser and its representatives all information, records, data and
working papers as may be reasonably requested by Purchaser to confirm the nature and amount of the
Reimbursed Liabilities. Subject to the immediately following sentence, Purchaser agrees to pay to
the Seller in cash the total of the Reimbursed Liabilities within ten (10) Business Days of the
Closing Date or seven (7) Business Days after receipt by Purchaser of such statement of the
Reimbursed Liabilities, whichever is later (the “Reimbursement Payment”). Should Purchaser
dispute any amount of the Reimbursed Liabilities presented by Seller then such amount shall be
deducted from the Reimbursement Payment pending resolution of such dispute. Purchaser shall
describe in reasonable detail the nature of the disputed items of Reimbursed Liabilities and the
basis for any such dispute. Seller and Purchaser will negotiate in good faith to resolve such
dispute and shall cooperate with and make available to the other party and its representatives all
information, records, data and working papers as may be reasonably required in connection with the
resolution of any disputes with respect thereto. If Seller and Purchaser, notwithstanding such
good faith effort, fail to resolve such dispute within thirty (30) days after the Purchaser first
disputes Seller’s statement of Reimbursed Liabilities, then the process for resolving the dispute
shall be resolved in accordance with the provisions as set out in Section 3.2(d).

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          3.4 Closing Date Shortfall Cash. If the Closing Net Current Assets as estimated by Seller in
good faith as of the Closing, is less than negative $2,596,886 (the “Shortfall Target”)
then the amount of cash equal to the difference between the Closing Net Current Assets as estimated
by Seller in good faith as of the Closing and the Shortfall Target (the “Shortfall Cash
Amount”) shall be included as a Purchased Asset and shall be transferred by Seller to Purchaser
at the Closing. Notwithstanding anything contained in this Agreement to the contrary, if the
Closing Net Current Assets (after taking into account the Shortfall Cash Amount paid at the
Closing) are less than the Shortfall Target, then Purchaser shall have the right to rescind the
transactions contemplated by this Agreement, such right of rescission to be exercised by written
notice given to Seller within thirty (30) days after the final determination of the Closing Net
Current Assets.

ARTICLE IV

CLOSING AND TERMINATION

          4.1 Closing Date. The consummation of the purchase and sale of the Purchased
Assets and the assumption of the Assumed Liabilities provided for in Article II (the
“Closing”) shall take place at 7 Times Square, New York, NY, 10036 (or at such other
place as the parties may designate in writing) at 10:00 a.m. (New York City time) on the last
Business Day of the month in which all of the conditions set forth in Article IX have
been satisfied or waived (other than conditions that by their nature are to be satisfied at
the Closing, but subject to the satisfaction or waiver of those conditions at such time);
provided, however, that if all such conditions have been satisfied or waived
prior to the 15th day of the month, the Closing shall take place on the fifth Business Day
after all such conditions have been waived or satisfied, unless another time, date or place is
agreed to in writing by the parties hereto (the “Closing Date”); provided
further that the closing of the sale of the FCC Licenses may be deferred to a later
date pursuant to Section 7.5.

          4.2 Termination of Agreement. This Agreement may be terminated prior to the
Closing as follows:

               (a) At the election of Seller or Purchaser on or after the date that is seventy-five (75) days
after the date hereof (such date, the “Termination Date”), if the Closing shall not have
occurred by the close of business on such date; provided, however, that, if the
condition set forth in Section 9.1(e) and/or 9.1(f) is/are the only condition(s)
remaining to be satisfied on such date (other than those conditions that are only capable of being
satisfied on the Closing), then Seller or Purchaser may extend the Termination Date by thirty (30)
additional days; and provided further that the right to terminate this Agreement under this
Section 4.2(a) shall not be available to any party whose failure to fulfill any material
obligation under this Agreement has been the cause of, or resulted in, the failure of the Closing
to occur on or before such date;

               (b) by mutual written consent of Seller and Purchaser;

               (c) by Purchaser, provided that it is not then in material breach of any of its obligations
under this Agreement, if Seller (i) fails in any material respect to perform any of its covenants
in this Agreement when performance thereof is due or (ii) has breached in any

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material respect any of the representations or warranties contained in Article V, and
does not cure such failure or breach within fifteen (15) Business Days after Purchaser delivers
written notice thereof; provided, however, that Purchaser shall not be entitled to
terminate this Agreement pursuant to this Section 4.2(c) if, prior to the expiration of
such fifteen (15) Business Day period, Seller delivers a certificate signed by an officer of Seller
certifying that (A) Seller reasonably believes that such breach or failure is capable of being
cured prior to the Termination Date and (B) Seller shall use its reasonable best efforts to cause
such breach or failure to be cured prior to the Termination Date;

               (d) by Seller, provided that it is not then in material breach of any of its obligations under
this Agreement, if Purchaser (i) fails in any material respect to perform any of its covenants in
this Agreement when performance thereof is due or (ii) has breached in any material respect any of
the representations or warranties contained in Article VI, and does not cure such failure
or breach within fifteen (15) Business Days after Seller delivers written notice thereof;
provided, however, that Seller shall not be entitled to terminate this Agreement
pursuant to this Section 4.2(d) if, prior to the expiration of such fifteen (15) Business
Day period, Purchaser delivers a certificate signed by an officer of Seller certifying that
(A) Purchaser reasonably believes that such breach or failure is capable of being cured prior to
the Termination Date and (B) Purchaser shall use its reasonable best efforts to cause such breach
or failure to be cured prior to the Termination Date;

               (e) by Seller or Purchaser if there shall be in effect a final nonappealable Order of a
Governmental Body of competent jurisdiction restraining, enjoining or otherwise prohibiting the
consummation of the transactions contemplated hereby; it being agreed that the parties hereto shall
promptly appeal any adverse determination which is appealable (and pursue such appeal with
reasonable diligence); or

               (f) by Purchaser if a negative Substantive Indication has been received by Purchaser within
sixty (60) days after the date hereof; provided, however, that a request by the FCC
for additional information relating to the Transfer Applications, Assignment Applications or
Foreign Ownership Applications shall not be deemed to be a negative Substantive Indication; and
provided, further, that Purchaser shall have only until seventy-five (75) days
after the date hereof to terminate under this subparagraph (f).

          4.3 Procedure Upon Termination. (a) In the event of termination and abandonment
by Purchaser or Seller, or both, pursuant to Section 4.2, written notice thereof shall
forthwith be given to the other party or parties, and this Agreement shall terminate, and the
purchase of the Assets hereunder shall be abandoned, without further action by Purchaser or
Seller.

               (b) Notwithstanding the provisions of Section 4.3(a), if this Agreement is being
terminated by Purchaser solely in accordance with Section 4.2(f), (i) Purchaser shall
promptly provide Seller with copies of all written communications from the FCC relating to the
Transfer Applications, Assignment Applications or Foreign Ownership Applications and the negative
Substantive Indication relating thereto; (ii) Purchaser shall consent to Seller and its counsel
participating in telephonic conversations with the FCC relating to the negative Substantive
Indication; and (iii) the termination of this Agreement by Purchaser solely in

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accordance with Section 4.2(f) shall take effect fifteen (15) days after Seller’s
receipt of Purchaser’s termination notice if the FCC shall have not withdrawn its negative
Substantive Indication in writing within such fifteen (15) day period. If the FCC withdraws its
negative Substantive Indication in writing during such fifteen (15) day period, such termination
notice shall be of no further force and effect and this Agreement shall not be terminated. This
Section 4.3(b) shall not modify or delay the rights of Purchaser or Seller to terminate
this Agreement for any of the reasons specified in Section 4.2 other than Section
4.2(f).

          4.4 Effect of Termination.

               (a) In the event that this Agreement is validly terminated in accordance with Sections
4.2 and 4.3, then each of the parties shall be relieved of its respective duties and
obligations arising under this Agreement from and after the date of such termination and such
termination shall be without liability to Purchaser or Seller; provided, however,
that no such termination shall relieve any party hereto from liability for any breach of this
Agreement or other Liability arising prior to termination hereof and; provided, further, that the
obligations of the parties set forth in this Section 4.4 and Article XI shall
survive any such termination and shall be enforceable hereunder.

               (b) The Confidentiality Agreement shall survive any termination of this Agreement and nothing
in this Section 4.4 shall relieve Purchaser or Seller of its respective obligations under
the Confidentiality Agreement.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF SELLER

     Matters disclosed by Seller in the Seller Disclosure Schedule dated and delivered to Purchaser
on even date herewith (the “Seller Disclosure Schedule”) in reference to any particular
Section will be deemed to be disclosed for all purposes of Article V to the extent that the
disclosure of such matters in such other section of the Seller Disclosure Schedule, upon review of
the entire Seller Disclosure Schedule, is reasonably apparent. Seller shall make reasonable
efforts to cross reference all disclosures to the representation and warranty being qualified
thereby. Except as specifically disclosed, or as qualified by specific information set forth, in
the Seller Disclosure Schedule, Seller represents and warrants to Purchaser as follows:

          5.1 Organization and Good Standing. Seller is a corporation duly organized,
validly existing and in good standing under the laws of the State of California and has all
requisite corporate power and authority to own, lease and operate its properties and to carry
on its business as now conducted. Seller is duly qualified or authorized to do business as a
foreign corporation and is in good standing under the laws of each jurisdiction in which it
owns or leases real property and each other jurisdiction in which the conduct of its business
or the ownership of its properties requires such qualification or authorization, except where
the failure to be so qualified, authorized or in good standing would not, individually or in
the aggregate, have a Material Adverse Effect. Section 5.1 of the Seller Disclosure
Schedule sets forth a list of the jurisdictions in which Seller is qualified to do business as
of the date hereof.

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          5.2 Authorization of Agreement. Seller has all requisite corporate power and
authority to execute and deliver this Agreement and Seller has all requisite power, authority
and legal capacity to execute and deliver each other agreement, document, or instrument or
certificate contemplated by this Agreement or to be executed by Seller in connection with the
consummation of the transactions contemplated by this Agreement (the “Seller
Documents”), to perform its obligations hereunder and thereunder and to consummate the
transactions contemplated hereby and thereby. The execution, delivery and performance of this
Agreement and each of the Seller Documents and the consummation of the transactions
contemplated hereby and thereby have been duly authorized and approved by all requisite
corporate action on the part of Seller and no other corporate proceedings on the part of
Seller are necessary to authorize this Agreement and such other agreements and documents or to
consummate the transactions contemplated hereby and thereby. This Agreement has been, and
each of the Seller Documents will be at or prior to the Closing or FCC Licenses Closing, as
applicable, duly and validly executed and delivered by Seller and (assuming the due
authorization, execution and delivery by the other parties hereto and thereto) this Agreement
constitutes, and each of the Seller Documents when so executed and delivered will constitute,
legal, valid and binding obligations of Seller, enforceable against Seller in accordance with
their respective terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium and similar laws affecting creditors’ rights and remedies generally, and subject,
as to enforceability, to general principles of equity, including principles of commercial
reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity).

          5.3
Conflicts; Consents of Third Parties; Subsidiaries.

               (a) None of the execution
and delivery by Seller of this Agreement, the consummation of the transactions contemplated
hereby, or compliance by Seller with any of the provisions hereof or thereof will conflict with,
or result in any violation of or default (with or without notice or lapse of time, or both)
under, or give rise to a right of termination or cancellation under, any provision of (i) the
certificate of incorporation or by-laws of Seller; (ii) any Purchased Contract (other than Tower
Site Leases); (iii) any Permit relating to the Business; (iv) any Order of any Governmental Body
applicable to Seller or by which any of the Purchased Assets are bound; or (v) any applicable
Law, other than, in the case of this clause (v) only, such conflicts or violations that would not
cause a Material Adverse Effect.

               (b) No consent, waiver, approval, Order, Permit or authorization of, or filing with, or
notification to, any Person or Governmental Body is required on the part of Seller in connection
with the execution and delivery of this Agreement, the compliance by Seller with any of the
provisions hereof, or the consummation of the transactions contemplated hereby, except for filings
with and approvals of the Federal Communications Commission (the “FCC”) as required under
the Communications Act of 1934 (the “Communications Act”) and the rules and regulations
promulgated thereunder.

               (c) All of Seller’s Subsidiaries are listed in Section 5.3(c) of the Seller Disclosure
Schedule. No such Subsidiary owns, uses, has a right to use, leases, licenses, or otherwise has
any interest of any type whatsoever in any of the Purchased Assets.

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          5.4 Balance Sheets; Books of Account.

               (a) Seller has made available to Purchaser copies of the unaudited balance sheets of the
Business as of August 31, 2007, October 31, 2007, December 31, 2007 and January 31, 2008
(collectively, the “Balance Sheets”). The Balance Sheets have been prepared in accordance
with GAAP consistently applied and presents fairly in all material respects the balance sheet of
the Business at the date indicated therein. For the purposes hereof, January 31, 2008 is referred
to as the “Balance Sheet Date.”

               (b) The books, records and accounts of Seller, as they relate to the Business, accurately and
fairly reflect, in all material aspects, the transactions and the assets and liabilities of the
Business. With respect to the Business, Seller maintains a system of internal accounting control
sufficient all material aspects to provide reasonable assurances that (i) transactions are executed
in accordance with management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with GAAP, (iii) access to
assets, properties, books, records and accounts is permitted only in accordance with management’s
general or specific authorization, and (iv) the recorded accounting for assets is compared with the
existing assets at reasonable intervals and appropriate action is taken with respect to any
differences.

               (c) With respect to the Business, Seller does not have any Liabilities of any nature, whether
accrued, absolute, contingent or otherwise, and whether due or to become due, that would in the
aggregate be material, except Liabilities that (i) are reflected or disclosed in Balance Sheets as
of the Balance Sheet Date (whether or not required under GAAP to be disclosed in the Balance Sheet
or the notes thereof), (ii) were incurred after the Balance Sheet Date in the Ordinary Course of
Business or (iii) are set forth in Section 5.4(c) of the Seller Disclosure Schedule.

          5.5 Title to Purchased Assets; Sufficiency.

               (a) Seller owns and has good title to each of the Purchased Assets, free and clear of all
Liens other than Permitted Exceptions.

               (b) The Purchased Assets constitute all of the assets necessary together with Seller’s
agreements hereunder and under the Seller Documents for Purchaser to conduct the Business as of the
Closing Date without interruption and in the ordinary course of business, except the Excluded
Assets and those services set forth in Section 5.5(b) of the Seller Disclosure Schedule.

               (c) Except for the effects of this Agreement, the consummation of the transactions
contemplated hereby, or of any actions of Purchaser or any Affiliate of Purchaser, upon the
consummation of the transactions contemplated hereby, Purchaser will have acquired, on and as of
the Closing Date or FCC Licenses Closing Date, as applicable, good and valid title in and to the
Purchased Assets, free and clear of all Liens other than Permitted Exceptions.

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          5.6 Compliance with Laws; Permits.

               (a) Except for minor discrepancies in the latitude and/or longitude of certain sites, Seller
is in compliance in all material respects with all Laws applicable to its operation of the Business
and its ownership of the Purchased Assets. Since January 31, 2007, Seller has not received any
written notice, including in disclosure schedules received from MCI, LLC or its Affiliates, of or
been charged with the violation of any Laws. Section 5.6(a) of the Seller Disclosure
Schedule contains a description of any such written notices which have been received by Seller as
of the date hereof.

               (b) Except as set forth on Section 5.6(b) of the Seller Disclosure Schedule, Seller
currently has all Permits which are required for the operation of the Business as presently
conducted. With respect to the Business, Seller is not in material default or violation (and no
event has occurred which, with notice or the lapse of time or both, would constitute a material
default or violation) of any term, condition or provision of any Permit to which it is a party.

               (c) Section 5.6(c) of the Seller Disclosure Schedule sets forth a true and complete
list as of the date of this Agreement of the FCC Licenses. Except for minor discrepancies with
respect to the latitude and/or longitude of certain sites, (i) each of the FCC Licenses is in full
force and effect; (ii) Seller has complied in all material respects with the terms of each of the
FCC Licenses; (iii) to the Knowledge of Seller, no condition exists or event has occurred which,
with or without the lapse of time or the giving of notice, or both, would reasonably be expected to
result in the revocation, cancellation, adverse modification or non-renewal of any of the FCC
Licenses; (iv) without limiting the generality of clause (ii) above, as of the date hereof, all
license fees and expenses due and payable by Seller in relation to the FCC Licenses have been paid
by Seller; and (v) since February 1, 2007, all material reports and other documents required to be
filed by Seller with the FCC or any other Governmental Body with respect to the FCC Licenses have
been timely filed.

          5.7 Material Contracts.

               (a) Section 5.7(a) of the Seller Disclosure Schedule sets forth all of the following
Contracts currently in effect, other than Tower Site Leases and Excluded Contracts, to which Seller
is a party or by which it is bound that are primarily related to the Business or by which the
Purchased Assets may be bound or affected, whether or not they are Purchased Contracts
(collectively, the “Material Contracts”):

               (i) Contracts with any officer, director or Affiliate of Seller who currently provides
services to the Business;

               (ii) Contracts containing a covenant or agreement not to compete in any geographical
area or in any line of business that materially limits the operation of the Business as
presently conducted;

               (iii) Contracts for the sale or lease of, or other granting of rights with respect to,
any of the Purchased Assets, other than in the Ordinary Course of Business;

28

 

               (iv) Contracts relating to any acquisition or divestiture made (and for which there are
continuing contractual obligations of Seller thereunder as of the date hereof) or to be made
by Seller of any operating business or capital stock of Seller or relating to or affecting
the Business;

               (v) any union contract, collective bargaining agreement or other similar agreement
affecting any Employee;

               (vi) Contracts for joint ventures, strategic alliances, partnerships, licensing
arrangements, or sharing of profits related to or affecting the Business;

               (vii) Contracts relating to incurrence of Indebtedness, or the making of any loans, in
each case, other than in the Ordinary Course of Business and other than those that are
Excluded Contracts;

               (viii) Contracts with customers or suppliers relating to the Business not terminable
without penalty greater than $10,000, individually, upon 90 days (or less) notice, other
than Contracts with individual users of pagers;

               (ix) Contracts with vendors providing for an extension of credit other than consistent
with normal customer credit terms;

               (x) Any standalone non-compete agreements relating to the Business; and

               (xi) Contracts which involve the expenditure of more than $50,000 in the aggregate,
other than payments to common carriers for network backbone infrastructure services and
other than Tower Site Leases.

True and complete copies of all Material Contracts have been made available to Purchaser.

               (b) All Material Contracts are valid, binding and in full force and effect and are enforceable
by Seller in accordance with their respective terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors’ rights and remedies generally, and
subject, as to enforceability, to general principles of equity, including principles of commercial
reasonableness, good faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity). Neither Seller nor, to the Knowledge of Seller, any other party
to any of the Material Contracts is in breach or default thereunder in any material respect. To
the Knowledge of Seller, no condition exists or event has occurred which, with or without the lapse
of time or the giving of notice, or both, would constitute a default by Seller in any material
respect under any Material Contract.

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          5.8
Legal Proceedings. As of the date of this Agreement, there are no Legal
Proceedings pending, nor, to the Knowledge of Seller, threatened against Seller, or to which
Seller is otherwise a party, before any Governmental Body and (i) relating to the Business or
(ii) which questions or challenges the validity of this Agreement or any action taken or to be
taken by Seller pursuant to this Agreement. As of the date of this Agreement, Seller is not
subject to any Order relating to the Business.

          5.9 Intellectual Property.

               (a) Section 5.9(a) of the Seller Disclosure Schedule identifies (i) all Intellectual
Property (excluding Software) used in connection with the Business (“Business Intellectual
Property”) and Software used in connection with the Business (“Business Software”), and
(ii) each item of Business Intellectual Property (excluding Business Software) and Business
Software that any third party owns and that Seller uses in connection with the Business pursuant to
license, sublicense, agreement or permission (those items of Business Intellectual Property and
Business Software in clause (ii) are collectively referred to as “Licensed Intellectual
Property”). Except as set forth on Section 5.9(a) of the Seller Disclosure Schedule,
Seller has not licensed or granted to anyone the right to use any of the Business Intellectual
Property or Business Software. Seller has taken all commercially reasonable actions to maintain
all issued patents, trademarks and copyright registrations in the Statutory Intellectual Property,
to prosecute all pending applications in the Statutory Intellectual Property and to protect all
Non-Statutory Intellectual Property owned by Seller and used in the Business.

               (b) Except as set forth on Section 5.9(b) of the Seller Disclosure Schedule, Seller
owns all right, title and interest in, free and clear of all Liens and other encumbrances and
licenses, has the right to use, sell, license and dispose of, and has the right to bring actions
for the infringement of, and, where necessary, has made timely and proper application for, all
Business Intellectual Property and Business Software rights (other than with respect to the
Licensed Intellectual Property) necessary or required for the conduct of the Business as it has
been conducted by Seller since February 1, 2007.

               (c) To the Knowledge of Seller, the Business has not infringed upon or misappropriated any
Intellectual Property rights of third parties. Except for actions relating to the prosecution of
patent and trademark applications pending before the respective patent and trademark offices,
Seller has not received written notice of any pending or threatened Legal Proceeding or other
action, suit, proceeding, hearing, investigation, charge, complaint, claim or demand that
challenges the legality, validity, enforceability, registrations, use, or ownership of any item of
Business Intellectual Property or Business Software in any applicable country or jurisdiction.

               (d) To the Knowledge of Seller, the use, development, manufacture, marketing, license, sale,
or furnishing of any product or service currently licensed, utilized, sold, provided or furnished
by Seller in the conduct of the Business does not violate any license or other Contract between
Seller and any third party.

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               (e) To the Knowledge of Seller, no current or former employee, consultant or independent
contractor of Seller: (i) is in material violation of any term or covenant of any employment
contract, patent disclosure agreement, invention assignment agreement, nondisclosure agreement or
noncompetition agreement with Seller; (ii) is in material violation of any term or covenant of any
Contract with any other party by virtue of such employee, consultant or independent contractor (A)
being employed by, or performing services for, Seller or (B) using trade secrets or proprietary
information of others in the performance of such services for Seller; or (iii) has developed any
copyrightable, patentable or otherwise proprietary work for Seller that is subject to any agreement
under which such employee, consultant or independent contractor has assigned or otherwise granted
to any third party any Intellectual Property rights in or to such work. To the Knowledge of
Seller, the employment of any employee of Seller or the use by Seller of the services of any
consultant or independent contractor does not subject Seller to any Liability to any third party
for improperly soliciting such employee, consultant or independent contractor to work for Seller,
whether such Liability is based on contractual or other legal obligations to such third party.

               (f) The Business Software does not contain, nor will contain upon delivery Harmful Code, as
that term is defined below. “Harmful Code” shall mean any computer programming code that
is constructed with the intent to and that does, damage, interfere with or otherwise improperly
affect other computer programs, data files or hardware without the knowledge or consent of the
computer user, including, but not limited to, self-replicating and self-propagating program
instructions commonly referred to as “viruses” or “worms” or “Trojan horses.”

               (g) Except as set forth in Section 5.9(g) of the Seller Disclosure Schedule, Seller
has not provided any third party with any copy of any source code to any Business Software. To the
Knowledge of Seller, prior to February 1, 2007 no third party possessed any copy of any source code
to any Business Software.

               (h) Except as set forth in Section 5.9(h) of the Seller Disclosure Schedule, Seller
has not disclosed the source code for any of the Business Software owned by it or other
confidential information constituting, embodied in or pertaining to such Business Software to any
Person, except pursuant to effective non-disclosure agreements. Seller has taken all commercially
reasonable measures to prevent disclosure of such source code. To the Knowledge of Seller, prior
to February 1, 2007 the source code for any of the Business Software or other confidential
information constituting, embodied in or pertaining to such Business Software, was not disclosed to
any Person, except pursuant to effective non-disclosure agreements.

               (i) The Business Software does not contain any open source, public source or freeware, or any
modification or derivative thereof and is not subject to any GNU general public license or limited
general public license.

               (j) To the Knowledge of Seller, (i) Seller has at all times complied with all applicable Laws
relating to privacy, data protection and the collection and use of personal information and user
information gathered or accessed in the course of the operations of the Business; (ii) Seller has
at all times complied in all respects with all rules, policies and procedures established by Seller
from time to time with respect to privacy, publicity, data

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protection or collection and use of personal information and user information gathered or
accessed in the course of the operations of the Business; and (iii) no claims have been asserted or
threatened against Seller by any Person alleging a violation of such Person’s privacy, personal or
confidentiality rights under any such rules, policies or procedures. With respect to all personal
and user information described in this Section 5.9(k), Seller has at all times taken all
commercially reasonable steps necessary (including, without limitation, implementing and monitoring
compliance with adequate measures with respect to technical and physical security) to ensure that
the information is protected against loss and against unauthorized access, use, modification,
disclosure or other misuse. To the Knowledge of Seller, there has been no unauthorized access to
or other misuse of that information. To the Knowledge of Seller, the consummation of the
transactions under this Agreement will not result in any breach or violation of any of the Seller’s
procedures, policies or rules governing privacy or use of any information or data of, or with
respect to, any Person or violate any Law with respect to such data or information.

          5.10
Insurance. Except to the extent that Seller self insures, Seller has policies
of insurance of the type and in amounts customarily carried by Persons conducting businesses
or owning assets similar to those of the Business. All such policies are in full force and
effect, all premiums due thereon have been paid and Seller is otherwise in compliance with the
terms and provisions of such policies. Seller has not received any notice of cancellation or
non-renewal of any such policy or arrangement nor, to the Knowledge of Seller, is the
termination of any such policies or arrangements threatened.

          5.11 Labor.

               (a) Seller is not a party to any labor or collective bargaining agreement involving any
Employee.

               (b) Seller is not a party to any Contract for the employment of any Employee on a full-time,
part-time or other basis.

               (c) As of the date hereof, there are no (i) strikes, work stoppages, work slowdowns or
lockouts pending or, to the Knowledge of Seller, threatened against or involving Seller with
respect to any Employee or (ii) unfair labor practice charges, grievances or complaints pending or,
to the Knowledge of Seller, threatened by or on behalf of any Employee or group of Employees.

               (d) Seller has not received notice of the intent of any federal, state, local or foreign
agency responsible for the enforcement of labor or employment laws to conduct an investigation with
respect to or relating to the Business or any Employee, and no such investigation is in progress.

               (e) There are no Legal Proceedings pending or, to the Knowledge of Seller, threatened in any
forum by or on behalf of any present or former Employee, any applicant for employment with Seller
relating to the Business or classes of the foregoing alleging breach of any express or implied
contract of employment, any Laws governing employment or the

32

 

termination thereof or other discriminatory, wrongful or tortious conduct in connection with
the employment relationship.

               (f) Section 5.11(f) of the Seller Disclosure Schedule sets forth (i) with respect to
each Employee, their name, date of hire, position, accrued time off, total annual compensation
(split between base and incentive compensation) and active status (or, if not active, the
applicable status), (ii) the wage rates for non-salaried and non-executive salaried Employees by
classification, and (iii) all group insurance programs in effect for Employees and the costs to
Employees thereof.

               (g) There are no leased employees (as such term is defined in Code Section 414(n)) who must be
taken into account for the requirements of Code Section 414(n)(3).

               (h) The execution and delivery of this Agreement by Seller, and the consummation of events
contemplated hereunder, either alone or together with any subsequent action of, or omission to act
by, Seller, will not result in any Liability of Purchaser to any Employee or former Employee,
except as specifically contemplated by the terms of this Agreement.

          5.12 Environmental Matters.

               (a) Seller is not subject to any Order or plan of correction relating to a violation of any
Environmental Law with respect to the Business or the Purchased Assets;

               (b) Since January 31, 2007, Seller has not received any written notice, including in
disclosure schedules received from MCI, LLC or its Affiliates, of, and otherwise has no Knowledge
of, noncompliance with any Environmental Law or Permit or Order, or pending, threatened or ongoing
Environmental Claims, or investigations under Environmental Laws, concerning the Business, or any
currently or previously owned or leased property of Seller used in the operation of the Business;

               (c) Seller is not in material violation of any Environmental Law and has complied with all
applicable Environmental Laws in all material respects;

               (d) Since January 31, 2007, and, to the Knowledge of Seller, prior to January 31, 2007, no
Hazardous Material has been Released, or threatened to be Released, from the operations of the
Business in violation of any applicable Environmental Law, requiring action under any Environmental
Law, or has resulted in any Environmental Claim, including personal injury or property or other
damage; and

               (e) Seller has not handled, used, discharged, released, disposed of, transported or arranged
for the transportation or disposal of, any Hazardous Materials, (i) in a manner that may reasonably
form the basis of an Environmental Claim, or (ii) to a facility, site or location that is listed on
any federal or state investigation or cleanup list pursuant to any Environmental Law or that Seller
otherwise has Knowledge that such facility, site or location is subject to investigation or cleanup
required pursuant to any Environmental Law.

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          5.13 Conduct of Business in Ordinary Course. Except for the transactions
contemplated hereby, since September 30, 2007, (i) Seller has conducted the Business in the
Ordinary Course of Business, and (ii) there has not been any event, change, occurrence or
circumstance that has had a Material Adverse Effect. Since September 30, 2007, there has not
been, in each case as it relates to the Business:

               (a) any damage, destruction or loss (whether or not covered by insurance) with respect to any
Purchased Asset that is material to the Business;

               (b) any change by Seller in its accounting methods, principles or practices, or any changes in
depreciation or amortization policies or rates adopted by it;

               (c) any termination or failure to renew, or any threat made in writing (that was not
subsequently withdrawn in writing) to terminate or fail to renew, any Material Contract, or any
amendments or modifications thereto;

               (d) except as may have occurred in the Ordinary Course of Business, any sale, abandonment,
transfer, lease, license or any other disposition of any properties or assets of Seller other than
the sale of the AVL Business pursuant to the Asset Purchase Agreement, dated as of February 14,
2008, between SkyGuard, LLC and Seller;

               (e) except with respect to equity securities of any Person received by Seller after the
reorganization or restructuring of such person, any acquisition of any capital stock or business of
any other person (or any reaching of an agreement, arrangement or understanding to do the same);

               (f) any bonuses awarded or paid to Employees, except to the extent accrued on the Balance
Sheets as of the Balance Sheet Date, or any increase in the compensation payable or to become
payable by it to any Employee; or

               (g) except in the Ordinary Course of Business, (i) any incurrence of Indebtedness or
assumption, guarantee or other responsibility for the debts of any other Person (other than
check-clearing endorsements made in the Ordinary Course of Business), (ii) any loans, advances or
capital contributions to or investments in any other Person (other than advances against
commissions and advances of expenses to sales personnel in the normal course of business), or (iii)
any grant of any security interest or creation or modification of any Liens on any of the Purchased
Assets.

          5.14 Customers and Suppliers.

               (a) Section 5.14(a) of the Seller Disclosure Schedule sets forth each of the
Business’s fifteen (15) largest customers as a percentage of the Business’ revenue along with
actual revenue generated by each such customer for the period between February 1, 2007 and December
31, 2007 (“Material Customers”). None of the Material Customers have informed Seller in
writing that such Material Customer intends to not renew any Contract relating to, or to reduce its
purchases from, the Business over the next 12 month period.

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               (b) Section 5.14(b) of the Seller Disclosure Schedule sets forth each of the Business’
fifteen (15) largest suppliers (excluding lessors under Tower Site Leases) as a percentage of the
Business’ purchases along with the actual amount of purchases from each such supplier for the
period between February 1, 2007 and December 31, 2007 (“Material Suppliers”). None of the
Material Suppliers have informed Seller in writing that such Material Supplier intends to no longer
supply, or reduce its supply to, the Business after the Closing Date.

          5.15 PP&E. The PP&E in the aggregate is in good operating condition and repair,
and is adequate and suitable in all material respects for the present and continued use,
operation and maintenance thereof as now used, operated or maintained.

          5.16 Foreign Corrupt Practices Act and Export Restrictions.

               With respect to the Business, Seller is in compliance with the Foreign Corrupt Practices Act
of 1977, as amended. Seller does not provide any of its services in Cuba, Syria, Myanmar (Burma),
Iran, North Korea, Libya or Sudan or any other country subject to U.S. trade restrictions, embargo
or executive order.

          5.17 Taxes.

               (a) Seller has paid or caused to be paid and will continue to pay all Taxes that could become
a liability of Purchaser by reason of the transfer of the Purchased Assets to Purchaser as
described herein or that could result in a Lien on any Purchased Assets. Seller has filed or
caused to be filed and will continue to file or cause to be filed all Tax Returns to the extent a
failure to do so could result in liability to Purchaser or could result in a Lien on any Purchased
Assets. Seller has no actual or contingent liability for Taxes that could become a liability of
Purchaser by reason of the transactions described herein.

               (b) No Governmental Authority has provided Seller with written notice, nor to the Knowledge of
Seller has any Governmental Authority provided Seller with oral notice, that Seller or any of its
Affiliates is subject to Tax in a jurisdiction in which the required Tax Returns have not been
filed by or for such entities.

               (c) No material issues have been raised in writing in any audits, examinations or disputes
pertaining to Taxes of Seller that can reasonably be expected to be raised in similar examinations
of Purchaser after the Closing.

               (d) The Purchased Assets are not subject to any joint venture, partnership or other
arrangement or contract that is treated as a partnership for Tax purposes.

          5.18 Real Property.

               (a) Section 5.18(a) of the Seller Disclosure Schedule sets forth a complete list of
all agreements relating to the use of communication sites not owned by Seller but used by Seller in
the operation of the Business (the “Tower Site Leases”). Seller utilizes the equipment at
each of the communication sites that are the subject of the Tower Site Leases for the active
transmission of wireless messaging.

35

 

               (b) Seller has a valid, binding and enforceable leasehold interest under each of the Tower
Site Leases under which it is a lessee, free and clear of all Liens other than Permitted
Exceptions, except for such Tower Site Leases that would not be material, individually or in the
aggregate, to the operation of the Business as currently conducted. Each of the Tower Site Leases
is in full force and effect, except for such Tower Site Leases that would not be material,
individually or in the aggregate, to the operation of the Business as currently conducted. Seller
has not assigned its rights under any of the Tower Site Leases to any other person. Other than the
consummation of the transactions contemplated by this Agreement, to the Knowledge of Seller, no
condition exists or event has occurred which, with or without the lapse of time or the giving of
notice, or both, would constitute a default by any party under any Tower Site Lease that is
material, individually or in the aggregate, to the operation of the Business as currently
conducted.

          5.19 Tangible Personal Property. Section 5.19 of the Seller Disclosure
Schedule sets forth all leases of personal property by Seller (“Personal Property
Leases”) involving annual payments in excess of $10,000, or terms in excess of one year.
Seller has not received any written notice of any default or event that with notice or lapse
of time or both would constitute a default by Seller under any of the Personal Property
Leases. Neither Seller nor, to the Knowledge of Seller, any other party to any of the
Personal Property Leases is in noncompliance, breach or default thereunder in any material
respect. Since September 30, 2007, no Personal Property Lease has been modified or amended in
writing and no party to any Personal Property Lease has given Seller written notice of or, to
the Knowledge of Seller, made a claim with respect to any breach or default. To the Knowledge
of Seller, no condition exists or event has occurred which, with or without the lapse of time
or the giving of notice, or both, would constitute a default by any party under any Personal
Property Lease

          5.20 Product Warranty; Product Liability.

               (a) Each Product manufactured, sold or delivered by Seller in conducting the Business has been
in conformity with all product specifications and all express and implied warranties. Seller has no
liability for replacement or repair of any such Products or other damages in connection therewith
or any other product obligations greater than the amount reserved therefor and expressly taken into
account in the calculation of any adjustment to the Purchase Price pursuant to Section 3.2.
Seller has not sold any Products or delivered any services that included a warranty for a period
of longer than one (1) year.

               (b) To Seller’s Knowledge, (i) Seller has no liability arising out of any injury to
individuals or property as a result of the ownership, possession, or use of any Product designed,
manufactured, assembled, repaired, sold or installed by or on behalf of Seller and (ii) Seller has
not committed any act or failed to commit any act which would result in, and there has been no
occurrence which would give rise to or form the basis of, any product liability or liability for
breach of warranty (whether covered by insurance or not) on the part of Seller with respect to
Products designed, manufactured, assembled, repaired, sold or installed by or on behalf of the
Business.

          5.21 Certain Payments; Certain Interests. Neither Seller nor, to the Knowledge of
Seller, any director, officer, employee, or other Person associated with or acting on behalf
of

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Seller, has directly or indirectly (a) made any contribution, gift, bribe, rebate, payoff,
influence payment, kickback, or other payment to any Person, private or public, regardless of
form, whether in money, property, or services (i) to obtain favorable treatment in securing
business for the Business, (ii) to pay for favorable treatment for business secured by the
Business, (iii) to obtain special concessions or for special concessions already obtained, for
or in respect of the Business, (iv) that might subject the Business to any damage or penalty
in any Legal Proceeding, (v) in violation of any Law, or (vi) if not continued in the future,
might have a Material Adverse Effect on the Business, or (b) established or maintained any
fund or asset with respect to the Business that has not been recorded in the books and records
of the Business.

          5.22 Employee Benefits.

               (a) Section 5.22(a) of the Seller Disclosure Schedule lists each “employee benefit
plan” (as defined in Section 3(3) of ERISA) and any other stock award, stock option, stock
purchase, bonus or other incentive compensation, vacation, change of control, educational
assistance, deferred compensation, salary continuation, disability, retirement, welfare benefit,
severance, or life insurance plan or agreement in which current or former Employees participate
(each, an “Employee Benefit Plan”). Seller has made available to Purchaser correct and
complete copies of (i) each Employee Benefit Plan (including related individual agreements (such as
stock option agreements)), (ii) the most recent annual reports on Form 5500 required to be filed
with respect to each Employee Benefit Plan (if any such report was required), (iii) the most recent
summary plan description for each Employee Benefit Plan for which such summary plan description is
required and (iv) each trust agreement and insurance or group annuity contract relating to any
Employee Benefit Plan.

               (b) To the Knowledge of Seller, each Employee Benefit Plan that is intended to be tax
qualified under Section 401(a) of the Code (a “Qualified Plan”) is so qualified and has
received at least one determination letter as to its qualification since 1993, and nothing has
occurred that would cause the loss of such qualification. Seller has made available to Purchaser a
correct and complete copy of the most recent determination letter received with respect to each
Qualified Plan.

               (c) Except as set forth in Section 5.22(c) of the Seller Disclosure Schedule:

               (i) neither Seller nor any ERISA Affiliate sponsors or maintains (or has ever sponsored
or maintained) an “employee pension benefit plan” (within the meaning of Section 3(2) of
ERISA) that is subject to Title IV of ERISA or Section 412 of the Code; and

               (ii) neither Seller nor any ERISA Affiliate contributes or is obligated to contribute
(or has ever been obligated to contribute) to a “multiemployer plan,” as that term is
defined in Section 3(37) of ERISA, and neither Seller nor any of its ERISA Affiliates has
made or incurred a “complete withdrawal” or a “partial withdrawal,” as such terms are
respectively defined in Sections 4203 and 4205 of ERISA that could result
in the incurrence of a material liability by Seller or any of its ERISA Affiliates or
for which Purchaser could have any liability.

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          5.23
 Financial Advisors. No Person has acted, directly or indirectly, as a broker,
finder or financial advisor for Seller in connection with the transactions contemplated by
this Agreement and no such Person is entitled to any fee or commission or like payment in
respect thereof.

          5.24
Closing Net Current Assets. As of the Closing Date, the Business shall have
Closing Net Current Assets, as determined in accordance with the Agreed Principles, of at
least the Shortfall Target.

          5.25
 Solvency. As of the Closing Date, and after giving effect to the Closing, (i)
Seller will be solvent, able to pay its debts as they mature, will have capital sufficient to
carry on its business and all businesses in which it is about to engage, and (ii) the fair
present saleable value of its assets, calculated on a going concern basis, is in excess of the
amount of its liabilities. Subsequent to the Closing Date, the fair saleable value of
Seller’s assets (calculated on a going concern basis) will be in excess of the amount of its
liabilities.

          5.26
 No Other Representations or Warranties. Except for the representations and
warranties contained in this Article V (as qualified by the Seller Disclosure Schedule
to the extent contemplated in the introductory paragraph to this Article V), neither
Seller nor any other Person makes any other express or implied representation or warranty on
behalf of Seller, or with respect to the Business, the Purchased Assets, the Assumed
Liabilities or the transactions contemplated by this Agreement, and Seller makes no
representations or warranties to Purchaser regarding the probable success or profitability of
the Business.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF PURCHASER

               Purchaser hereby represents and warrants to Seller that:

          6.1
Organization and Good Standing. Purchaser is a limited liability company duly
organized, validly existing and in good standing under the laws of the State of Delaware and
has all requisite limited liability company power and authority to own, lease and operate its
properties and to carry on its business.

          6.2
Authorization of Agreement. Purchaser has full limited liability company power
and authority to execute and deliver this Agreement and each other agreement, document,
instrument or certificate contemplated by this Agreement or to be executed by Purchaser in
connection with the consummation of the transactions contemplated hereby and thereby (the
“Purchaser Documents”), and to consummate the transactions contemplated hereby and
thereby. The execution, delivery and performance by Purchaser of this Agreement and each
Purchaser Document have been duly authorized by all necessary limited liability company action
on behalf of Purchaser. This Agreement has been, and each Purchaser Document will be at or
prior to the Closing, duly executed and delivered by Purchaser and (assuming the due
authorization, execution and delivery by the
other parties hereto and thereto) this Agreement constitutes, and each Purchaser Document
when so executed and delivered will constitute, the legal, valid and binding obligation of
Purchaser, enforceable against Purchaser in accordance

38

 

with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium and similar laws affecting creditors’
rights and remedies generally, and subject, as to enforceability, to general principles of
equity, including principles of commercial reasonableness, good faith and fair dealing
(regardless of whether enforcement is sought in a proceeding at law or in equity)

          6.3 Conflicts; Consents of Third Parties.

               (a) None of the execution and delivery by Purchaser of this Agreement or any Loan Document,
the consummation of the transactions contemplated hereby and thereby, or the compliance by
Purchaser with any of the provisions hereof and thereof will conflict with, or result in any
violation of or default (with or without notice or lapse of time, or both) under, or give rise to a
right of termination or cancellation under, any provision of (i) the certificate of formation and
operating agreement of Purchaser, (ii) any Contract or Permit to which Purchaser is a party or by
which Purchaser or its properties or assets are bound, (iii) any Order of any Governmental Body
applicable to Purchaser or by which any of the properties or assets of Purchaser are bound or (iv)
any applicable Law.

               (b) No consent, waiver, approval, Order, Permit or authorization of, or declaration or filing
with, or notification to, any Person or Governmental Body is required on the part of Purchaser or
any Purchaser Designee in connection with the execution and delivery of this Agreement or the Loan
Documents, the compliance by Purchaser or any Purchaser Designee with any of the provisions hereof,
the consummation of the transactions contemplated hereby, or for Purchaser or any Purchaser
Designee to conduct the Business, other than (i) filings with and approvals of the FCC as required
under the Communications Act (ii) the filing of financing statements and other filings or actions
necessary to perfect Liens granted to Seller in the collateral provided for in the Loan Documents
and (iii) such other consents, waivers, approvals, Orders, Permits or authorizations the failure of
which to obtain would not have materially adversely affect Purchaser’s or any Purchaser Designee’s
ability to consummate the transactions contemplated by this Agreement.

          6.4
Litigation. There are no Legal Proceedings pending or, to the actual knowledge
of Purchaser, threatened that are reasonably likely to prohibit or restrain the ability of
Purchaser to enter into this Agreement or for it or any Purchaser Designee to consummate the
transactions contemplated hereby.

          6.5
Financial Advisors. No Person has acted, directly or indirectly, as a broker,
finder or financial advisor for Purchaser in connection with the transactions contemplated by
this Agreement and no Person is entitled to any fee or commission or like payment in respect
thereof

          6.6 Financing.

               Purchaser has adequate financial resources necessary to consummate the transactions
contemplated hereby. Purchaser has previously delivered a balance sheet of
Purchaser dated November 30, 2007 that presents fairly in all material respects the assets and
liabilities of Purchaser as of the date indicated therein. As of the date of this Agreement,
Purchaser has cash on hand in excess of $3,000,000.

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          6.7
Purchaser Qualifications. To Purchaser’s knowledge, no fact or circumstance
exists relating to the qualifications of the Sister Subsidiary, other Purchaser Designee or any
“party” to the Applications (as defined by the rules and regulations of the FCC) that (a) could
be reasonably expected to prevent or significantly delay the FCC from granting the Assignment
Applications or (b) would otherwise disqualify the Sister Subsidiary or Purchaser Designee from
being the licensee of the FCC Licenses. The Sister Subsidiary or Purchaser Designee also shall
affirmatively make the Assignee Certification Statements on the Applications.

          6.8
No Other Representations or Warranties. Except for the representations and
warranties contained in this Article VI, neither Purchaser nor any other Person makes any
other express or implied representation or warranty on behalf of Purchaser or with respect to the
transactions contemplated by this Agreement.

ARTICLE VII

CERTAIN COVENANTS

          7.1 Access to Information; Preservation of Records by Purchaser.

               (a) Seller agrees that, prior to the Closing, subject to its obligations set forth in
Section 7.6, Purchaser shall be entitled, through its officers, employees and
representatives (including its legal advisors and accountants), to make such investigation of the
properties, businesses and operations of the Business and such examination of the books and records
of the Business, the Purchased Assets and the Assumed Liabilities (including auditor work papers)
as it reasonably requests and to make extracts and copies of such books and records. Any such
investigation and examination shall be conducted upon reasonable advance notice in a reasonable
manner. Purchaser and Seller agree to the principles and guidelines for contacting and
communicating with customers and suppliers of Seller prior to the Closing, in accordance with the
procedures set forth on Schedule 7.1. Prior to the Closing, without the prior written
consent of Seller (which shall not be unreasonably withheld, conditioned or delayed), Purchaser
shall not contact any suppliers to, or customers of, Seller in a manner materially inconsistent
with such agreed upon principles and guidelines. Seller shall cause the officers, directors,
employees, consultants, agents, accountants, attorneys and other representatives of Seller to
cooperate with Purchaser and Purchaser’s representatives in connection with such investigation and
examination, and Purchaser and its representatives shall cooperate with Seller and its
representatives and shall use their reasonable efforts to minimize any disruption to the Business.
Notwithstanding anything herein to the contrary, no such investigation or examination shall be
permitted to the extent that it would require Seller to disclose information subject to
attorney-client privilege or subject to any binding contractual obligation with respect to
non-disclosure thereof. No investigation pursuant to this Section and no knowledge of Purchaser
shall affect any representation or warranty given by Seller in this Agreement.

               (b) For a period of five years after the Closing Date, Purchaser will give Seller reasonable
access during Purchaser’s regular business hours upon reasonable advance notice and under
reasonable circumstances and shall be subject to restrictions under applicable Law to books and
records transferred to Purchaser to the extent necessary for the preparation of financial
statements, regulatory filings or Tax returns of Seller or its Affiliates (other than in connection

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with Legal Proceedings between the parties hereto) in respect of periods ending on or prior to
Closing, or in connection with any Legal Proceedings. Seller shall be entitled, at its sole cost
and expense, to make copies of the books and records to which Seller is entitled to access pursuant
to this Section 7.1(b). In the event Purchaser wishes to destroy such records after that
time, Purchaser shall first give 90 days prior written notice to Seller and Seller shall
have the right at its option and expense, upon prior written notice given to Purchaser within such
90 day period, to take possession of the records within 180 days after the date of such notice.

          7.2 Conduct of the Business Pending the Closing.

               (a) Prior to the Closing Date, except (I) as set forth on Schedule 7.2, (II) as
reasonably determined jointly by Seller and Purchaser to be required by applicable Law, (III) as
otherwise contemplated by this Agreement or (IV) with the prior written consent of Purchaser (which
consent shall not be unreasonably withheld, conditioned or delayed), Seller shall:

               (i) conduct the Business only in the Ordinary Course of Business; and

               (ii) use its commercially reasonable efforts to (A) preserve the present business
operations, organization and goodwill of the Business, and (B) preserve the present
relationships with customers and suppliers of Seller.

               (b) Except (I) as set forth on Schedule 7.2, (II) as reasonably determined jointly by
Seller and Purchaser to be required by applicable Law, (III) as otherwise contemplated by this
Agreement or (IV) with the prior written consent of Purchaser (which consent shall not be
unreasonably withheld, conditioned or delayed), Seller shall not, as it relates to the Business:

               (i) other than in the Ordinary Course of Business or as required by Law, Contract or
the terms of any Employee Benefit Plan, (A) increase the annual level of compensation of any
Employee, (B) grant any bonus, benefit or other direct or indirect compensation to any
Employee, (C) adopt, or increase the coverage or benefits available under, any Employee
Benefit Plan or (D) enter into any employment, deferred compensation, severance, consulting,
non-competition or similar agreement (or amend any such agreement) with any Employee;

               (ii) subject any of the Purchased Assets to any Lien, except for Permitted Exceptions;

               (iii) acquire any properties or assets that would be Purchased Assets or sell, assign,
license, transfer, convey, lease or otherwise dispose of any portion of the Purchased Assets
(except pursuant to an existing Contract or purchases or sales of parts, equipment, supplies
and marketing materials in the Ordinary Course of Business or for the purpose of disposing
of obsolete or worthless assets);

               (iv) make any purchase of inventory other than pursuant to purchase orders existing as
of the date hereof and previously disclosed to Purchaser;

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               (v) cancel or compromise any debt or claim or waive or release any right of Seller that
constitutes a Purchased Asset with a value in excess of $50,000 individually or $100,000 in
the aggregate;

               (vi) enter into any commitment for capital expenditures (relating to the Business) in
excess of $20,000 for any individual commitment and $50,000 for all commitments in the
aggregate, other than purchases of inventory made on a capitalized basis;

               (vii) enter into, modify or terminate any labor or collective bargaining agreement
relating to the Business or any Employee;

               (viii) except as required by applicable Law or GAAP, make any change to any of its
methods of accounting or accounting practice;

               (ix) agree to do anything prohibited by this Section 7.2(b).

          7.3
Consents. Seller shall (and shall cause its Affiliates to) use their commercially
reasonable efforts to obtain at the earliest practicable date all consents and approvals required
to consummate the transactions contemplated by this Agreement, including the consents and
approvals referred to in Sections 5.3(b) and 6.3(b), and Purchaser shall (and
shall cause its Affiliates to) cooperate with Seller in connection with obtaining all such
consents and approvals; provided, however, that Seller shall not be obligated to
pay any consideration therefor to any third party from whom consent or approval is requested
unless expressly required by the terms of any Contract (excluding any Tower Site Lease).

          7.4
Further Assurances. Subject to, and not in limitation of, Section 7.3,
each of Seller and Purchaser shall use its commercially reasonable efforts to (i) take all
actions necessary or appropriate to consummate the transactions contemplated by this Agreement
and (ii) cause the fulfillment at the earliest practicable date of all of the conditions to their
respective obligations to consummate the transactions contemplated by this Agreement.

          7.5 FCC Applications.

               (a) Within five (5) Business Days after the date hereof, Purchaser shall (i) cause a related
entity (the “Sister Company”) to file with the FCC substantially complete, consolidated
applications (the “Transfer Applications”) requesting the FCC’s consent to the transfer of
equity interest of the Sister Company from a United States citizen to an entity at least majority
owned by one or more citizens of the United Kingdom, (ii) work with Seller to jointly file with the
FCC substantially complete, consolidated applications relating to all of the FCC Licenses (the
“Assignment Applications”), requesting the FCC’s consent to the voluntary assignment of the
FCC Licenses from Seller to a subsidiary of the Sister Company (the “Sister Subsidiary”),
and (iii) cause Sister Company and Sister Subsidiary to file a Petition for Declaratory Ruling with
the FCC seeking FCC approval for indirect foreign ownership exceeding twenty five percent (25%) of
the Sister Subsidiary (the “Foreign Ownership Application”). For the purposes of this Agreement, “FCC Consent” means the
FCC’s issuance of a public notice of or public order of consent to the Foreign Ownership
Application, the Transfer Applications, or the Assignment Applications, as the case may be.

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               (b) The Sister Company and Sister Subsidiary shall pay their respective expenses in connection
with the preparation and prosecution of the Foreign Ownership Application and the Transfer
Applications, including, without limitation, any filing fee associated with the Foreign Ownership
Application and the Transfer Applications. Purchaser shall cause the Sister Company and Sister
Subsidiary to (i) prosecute the Foreign Ownership Application and the Transfer Applications before
the FCC, including replying to or opposing any petitions to deny filed in any form whatsoever
against the Foreign Ownership Application and the Transfer Applications, with all reasonable
diligence, and (ii) use commercially reasonable efforts to overcome any objections by the FCC to
the Foreign Ownership Application and the Transfer Applications in order to obtain the FCC Consent
to the Foreign Ownership Application and the Transfer Applications promptly and in order to carry
out the provisions of this Agreement. Purchaser shall cause the Sister Company and Sister
Subsidiary to use commercially reasonable efforts to receive, within sixty (60) days after the
filing of the Foreign Ownership Application and the Assignment Applications, a positive or negative
indication from the FCC as to the likelihood of the FCC Consent to the Foreign Ownership
Application and the Assignment Applications being given (a “Substantive Indication”). If
FCC reconsideration or review, or judicial review, shall be sought with respect to the FCC Consent
to the Foreign Ownership Application by a third party or upon the FCC’s own motion, the Sister
Company and Sister Subsidiary shall oppose such requests for FCC reconsideration or review or for
judicial review.

               (c) The Sister Subsidiary and Seller shall each pay its own expenses in connection with the
preparation and prosecution of the Assignment Applications and shall share any filing fee
associated with the Assignment Applications equally. Seller shall, and Purchaser shall cause the
Sister Subsidiary to (i) prosecute the Assignment Applications before the FCC, including replying
to or opposing any petitions to deny filed in any form whatsoever against the Assignment
Applications, with all reasonable diligence, and (ii) use commercially reasonable efforts to
overcome any objections by the FCC to the Assignment Applications, in order to obtain the FCC
Consent to the Assignment Applications promptly. If FCC reconsideration or review, or judicial
review, shall be sought with respect to the FCC Consent to the Assignment Applications by a third
party or upon the FCC’s own motion, Seller shall, and Purchaser shall cause the Sister Subsidiary
to, cooperate in opposing such requests for FCC reconsideration or review or for judicial review.

               (d) In the event (A) Purchaser has not received a positive Substantive Indication, (B) the FCC
Consent to the Foreign Ownership Application and the Assignment Applications are not obtained
within seventy-five (75) days after the date hereof, or (C) the FCC Consent to the Foreign
Ownership Application and the Assignment Applications are obtained but do not become Final Orders,
then:

                    (X) Seller and a Purchaser Designee that is owned at least eighty percent (80%) by one or more
citizens of the United States shall enter into a short-term spectrum lease agreement providing for
minimal lease payments and otherwise on commercially reasonable terms (the “Short Term
Lease”) and submit the requisite filings to the FCC to permit such Purchaser Designee to
operate and/or receive the economic benefit of the FCC Licenses commencing on the Closing Date and
continuing for a period of six (6) months; and

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                    (Y) Seller and Purchaser shall cooperate to do one or more of the following, as determined by
Purchaser:

               (i) execute a long-term spectrum lease agreement providing for minimal lease payments
and otherwise on commercially reasonable terms and submit the requisite filings to the FCC
to permit a Purchaser Designee to operate and/or receive the economic benefit of the FCC
Licenses commencing on the Closing Date or the date the Short Term Lease expires, and
continuing through the earlier of (x) the date on which the Final Order to the Foreign
Ownership Application and the Assignment Applications is obtained, and (y) twenty (20)
years;

               (ii) comply with any and all actions and procedures set forth in any resultant FCC
order, including any FCC order rescinding the FCC Consent to the Foreign Ownership
Application or the Assignment Applications; and/or

               (iii) sell, transfer, assign, convey and deliver the FCC Licenses, the Purchased Assets
and the Assumed Liabilities to a third party designated by Purchaser in its sole discretion
with the proceeds of the closing of such transaction being for the sole benefit of
Purchaser.

               (e) In the event the FCC has not consented to the Foreign Ownership Application and the
Assignment Applications by the date that is one hundred (100) days after the date hereof, and the
parties hereto proceed pursuant to the spectrum lease arrangement contemplated by Sections
7.5(d)(i), 9.1(e)(ii) and 9.2(f)(ii), then there shall be a subsequent closing
at which Seller shall transfer, assign and convey its right, title and interest in and to the FCC
Licenses to the Sister Subsidiary or other Purchaser Designee (the “FCC Licenses Closing”)
promptly on a date to be agreed upon jointly by Seller and Purchaser following the receipt of the
FCC’s consent to the assignment of the FCC Licenses to the Sister Subsidiary or other Purchaser
Designee (the “FCC Licenses Closing Date”). There shall be no adjustment of the Cash
Consideration paid pursuant to Section 3.1 or the amount of the Note issued pursuant to
Section 3.1 in the event of a separate FCC Licenses Closing.

          7.6 Lender Consents.

                    Seller shall use commercially reasonable efforts to obtain the consents of each of its secured
lenders identified on Schedule 9.1(h) of the Seller Disclosure Schedule that are reasonably
necessary to consummate the transactions contemplated by this Agreement (the “Lender
Consents”).

          7.7 Confidentiality.

               (a) Purchaser acknowledges that the information provided to it in connection with this
Agreement and the transactions contemplated hereby is provided subject to the terms of the
non-disclosure agreement between Purchaser and Seller, dated August 20, 2007 (the
“Confidentiality Agreement”), the terms of which are incorporated herein by reference.
Effective upon, and only upon, the Closing Date, the Confidentiality Agreement shall terminate with
respect to information relating solely to the Business or otherwise included in the Purchased
Assets; provided, however, that Purchaser acknowledges that any and all other
Confidential

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Information (as defined in the Confidentiality Agreement) provided to it by Seller or
its representatives concerning Seller and the Subsidiaries and not related exclusively to the
Business or the Purchased Assets shall remain subject to the terms and conditions of the
Confidentiality Agreement after the Closing Date.

               (b) From and after the Closing Date, Seller shall not and shall cause its officers and
directors not to, directly or indirectly, disclose, reveal, divulge or communicate to any Person
other than authorized officers, directors and employees of Purchaser or use or otherwise exploit
for its own benefit or for the benefit of anyone other than Purchaser, any Confidential Information
(as defined below). Seller and its officers and directors shall not have any obligation to keep
confidential any Confidential Information if and to the extent disclosure thereof is required by
Law or other regulatory process, including preparation of financial statements, tax audits and
Legal Proceedings by or against Seller or its Affiliates. For purposes of this Section
7.6(b), “Confidential Information” shall mean any confidential information with respect
to the Business, including methods of operation, customers, customer lists, Products, prices, fees,
costs, inventions, know-how, marketing methods, plans, suppliers, competitors, markets or other
specialized information or proprietary matters. “Confidential Information” does not
include, and there shall be no obligation hereunder with respect to, information that (i)
is generally available to the public on the date of this Agreement or (ii) becomes generally
available to the public other than as a result of a disclosure not otherwise permissible hereunder.

          7.8
Preservation of Records by Seller. Seller shall preserve and keep the records held
by it or its Affiliates relating to the Business for a period of seven years from the Closing Date
and shall make such records and personnel available to Purchaser as may be reasonably required by
Purchaser, including by providing reasonable access during regular business hours upon reasonable
advance notice and under reasonable circumstances and subject to restrictions under applicable Law,
in connection with, among other things, preparation of financial statements, regulatory filings,
any insurance claims by, Legal Proceedings or tax audits against or governmental investigations of
Purchaser or any of its Affiliates (other than in connection with Legal Proceedings between the
parties hereto) or in order to enable Purchaser to comply with its obligations under this Agreement
and each other agreement, document or instrument contemplated hereby or thereby. Purchaser shall
be entitled, at its sole cost and expense, to make copies of the books and records to which it is
entitled to access pursuant to this Section 7.7. In the event Seller wishes to destroy
such records after that time, Purchaser shall first give 90 days prior written notice to
Seller and Seller shall have the right at its option and expense, upon prior written notice given
to Purchaser within such 90 day period, to take possession of the records within 180 days after the
date of such notice.

          7.9 Publicity.

               (a) Neither Seller nor Purchaser shall issue any press release or public announcement
concerning this Agreement or the transactions contemplated hereby without obtaining the prior
written approval of the other party hereto, which approval will not be unreasonably withheld,
conditioned or delayed, unless, in the sole judgment of Purchaser or Seller, as applicable,
disclosure is otherwise required by applicable Law or by the applicable rules of any stock exchange
on which Purchaser or Seller or any of their respective Affiliates lists securities,
provided, however, that, to the extent required by applicable Law, the party

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intending to make such release shall use its reasonable efforts consistent with such applicable Law
to consult with the other party with respect to the timing and content thereof.

               (b) Each of Purchaser and Seller agrees that the terms of this Agreement shall not be
disclosed or otherwise made available to the public and that copies of this Agreement shall not be
publicly filed or otherwise made available to the public, except where such disclosure,
availability or filing is required by applicable Law and only to the extent required by such Law.
Notwithstanding the foregoing, Seller may disclose the terms of this Agreement if, and only to the
extent, it determines that such disclosure is required under the Securities Act of 1934, as
amended, and the rules and regulations promulgated thereunder.

          7.10 Non-Competition; Non-Solicitation.

               (a) Seller agrees that, from and after the Closing Date and continuing through the date that
is twenty-four months after the Closing Date, Seller shall not utilize for itself or disseminate to
any of its Affiliates, and shall cause its Affiliates not to utilize, any customer lists of Seller
or the Business or any other proprietary information of Seller or the Business
concerning the identity of customers of the Business, in each case, as of the Closing Date,
for the purpose of providing such customers with any products or services or interfering with or
damaging any relationship and/or agreement between Purchaser or any of Purchaser’s Affiliates and
any such customer.

               (b) Seller agrees that, from and after the Closing Date and continuing through the date that
is twelve months after the Closing Date, without the prior written consent of Purchaser, Seller
shall not and shall cause its Affiliates not to, directly or indirectly: (i) engage, hire, lease
or utilize any Transferred Employee (whether or not then an employee of Purchaser), or (ii)
recruit, Solicit, attempt to Solicit, or assist anyone else to Solicit any Employee of Purchaser,
to terminate, restrict or hinder his, her or its association with Purchaser, or (iii) interfere in
any way with the relationship between Purchaser and any such Employee.

               (c) Purchaser agrees that, from and after the Closing Date and continuing through the date
that is twelve months after the Closing Date, except with respect to the Transferred Employees,
without the prior written consent of Seller, Purchaser shall not and shall cause its Affiliates not
to, directly or indirectly: (i) engage, hire, lease or utilize any Employee or any person who has
been an Employee for the twelve month period prior to the Closing, or (ii) recruit, Solicit,
attempt to Solicit, or assist anyone else to Solicit any Employee, or any person who has been an
Employee during the twelve month period prior to the Closing Date, to terminate, restrict or hinder
his, her or its association with Seller, or (iii) interfere in any way with the relationship
between Seller and any such Employee. For the purposes of this Agreement, “Solicit” shall
mean to encourage or induce, or to take any action that is intended or calculated to encourage or
induce, or which has the effect of encouraging or inducing or which is reasonably likely to result
in encouragement or inducement.

               (d) The parties hereto hereby agrees that a violation or attempted or threatened violation of
this Section 7.9 will cause irreparable injury to such party for which money damages would
be inadequate, and that such party shall be entitled, in addition to any other rights or remedies
it may have, whether in law or in equity, to obtain an injunction

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enjoining and restraining the
other party from a violation of the covenant contained herein. If, at the time of enforcement of
this Section 7.9 a court shall hold that the duration, scope, geographic area or other
restrictions stated herein are unreasonable under circumstances then existing, the parties hereto
agree that the maximum duration, scope, geographic area or other restrictions deemed reasonable
under such circumstances by such court shall be substituted for the stated duration, scope,
geographic area or other restrictions.

          7.11
Tax Matters. Purchaser and Seller shall cooperate in preparing, executing and
filing use, sales, real estate, transfer and similar Tax Returns relating to the purchase and sale
of the Purchased Assets. Such Tax Returns shall be prepared in a manner that is consistent with
the determination of the fair market values allocated to the Purchased Assets as contemplated by
Section 2.7(a). All sales, transfer, documentary, stamp, recording and similar Taxes
incurred in connection with the purchase and sale of the Purchased Assets (“Transfer
Taxes”) shall be borne equally by Purchaser and Seller.

          7.12
Supplementation and Amendment of Disclosure Schedule. From time to time prior to
the Closing, Seller shall have the right to supplement or amend the Seller Disclosure Schedule with
respect to any matter hereafter arising or discovered after the delivery of the Schedule pursuant
to this Agreement; provided, however, that no such supplement or amendment shall
have any effect on (i) the satisfaction of the condition to Closing set forth in Section
9.1(a) or (ii) any indemnification obligations.

ARTICLE VIII

EMPLOYEES AND EMPLOYEE BENEFITS

          8.1 Employment.

               (a) Transferred Employees. Prior to the execution of this Agreement, Purchaser has
delivered to Seller a list of one hundred eighty-eight (188) Employees (including Employees on
leave) (the “Transferred Employees List”). The selection of such Employees were at the
sole discretion of Purchaser. Immediately prior to the Closing, Purchaser shall deliver, in
writing, an offer of employment to the Employees on the Transferred Employees List, to the extent
such Employees are still employed by Seller at the Closing. With respect to any Employee on the
Transferred Employees List who is no longer employed by Seller as of the Closing (a
“Non-Employee”), Purchaser may, but is under no obligation to, offer employment to another
Employee as a substitution or replacement on the Transferred Employees List of any such
Non-Employee. Such offers of employment shall be subject to the Closing taking place. Subject to
compliance by Seller with Section 7.2(b)(i), each such offer of employment shall be for
comparable compensation (including the aggregate of salary and bonus but excluding equity
compensation) of, and for a position reasonably comparable to that held by, the offeree immediately
prior to the Closing. Such individuals who accept such offers are hereinafter referred to as the
“Transferred Employees.” Such individuals who are not offered employment by Purchaser or
who do not accept offers of employment by Purchaser are hereinafter referred to as the
“Non-Accepting Employees.”

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               (b) At Will. Seller agrees that Purchaser shall have no obligation or Liability with
respect to any Non-Accepting Employee and that Seller shall notify in conformity with the WARN Act
(and any applicable state laws), if applicable, all of the Employees whom Seller will not continue
to employ following the Closing Date. That notice, if applicable, shall inform such Employees of
their permanent loss of employment as of the Closing Date. Purchaser may, in its discretion,
employ Transferred Employees as “employees at will”; provided, however, that
Purchaser hereby commits to Seller (and not to any Employee) not to terminate any Transferred
Employee without cause within 60 days after the Closing Date.

               (c) WARN Act. Seller agrees that Seller shall be responsible for compliance with the
WARN Act with respect to all Employees, if applicable. Not in limitation of the foregoing, Seller
agrees that Seller shall have responsibility for any claims arising under the WARN Act with regard
to the termination of any Non-Accepting Employees by Seller.

               (d) Standard Procedure. Pursuant to the “Standard Procedure” provided in
section 5 of Revenue Procedure 96-60, 1996-2 C.B. 399, (i) Purchaser and Seller shall report on a
predecessor/successor basis as set forth therein, (ii) Seller shall not be relieved from filing a
Form W-2 with respect to any Transferred Employees, and (iii) Purchaser shall undertake to file (or
cause to be filed) a Form W-2 for each such Transferred Employee with respect to the portion of the
year during which such Employees are employed by Purchaser that includes the Closing Date,
excluding the portion of such year that such Employee was employed by Seller.

          8.2 Employee Benefits.

               (a) For purposes of eligibility and vesting (but not benefit accrual) under the employee
benefit plans of Purchaser and its Affiliates providing benefits to Transferred Employees (the
“Purchaser Plans”), Purchaser shall credit each Transferred Employee with his or her years
of service with Seller and any predecessor entities, to the same extent as such Transferred
Employee was entitled immediately prior to the Closing to credit for such service under any similar
Employee Benefit Plan. The Purchaser Plans shall not deny Transferred Employees coverage on the
basis of pre-existing conditions or evidence of insurability and shall credit such Transferred
Employees for any deductibles and out-of-pocket expenses paid under the comparable Employee Benefit
Plans in the year of initial participation in the Purchaser Plans.

               (b) Transferred Employees shall not accrue benefits under any employee benefit policies,
plans, arrangements, programs, practices or agreements of Seller or any of its Affiliates after the
Closing Date. Nothing in this Agreement shall cause duplicate benefits to be paid or provided to,
or with respect to, any Transferred Employee under any employee benefit policies, plans,
arrangements, programs, practices or agreements. References herein to a benefit with respect to a
Transferred Employee shall include, where applicable, benefits with respect to any eligible
dependents and beneficiaries of such Transferred Employee under the same employee benefit policy,
plan, arrangement, program, practice or agreement.

               (c) Purchaser shall take all action necessary and appropriate to ensure that, as of the
Closing Date, Purchaser maintains a qualified retirement plan under Code section 401(k)
(hereinafter referred to as the “Purchaser Savings Plan”) that shall accept rollover
contributions, including to the extent permitted by law any notes representing plan loans to

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participants, from each Transferred Employee who receives a distribution from a Qualified Plan, who
elects such a rollover form of distribution, and who is employed by Purchaser (or any of its
Affiliates) at the time of such distribution.

               (d) Nothing in this Agreement shall require Seller or its Affiliates to transfer assets or
reserves with respect to any Employee Benefit Plan to Purchaser or its Affiliates or the Purchaser
Plans.

          8.3
Employee Rights. Nothing herein express or implied shall confer upon any employee
of Seller or its Affiliates, or Purchaser or its Affiliates, or upon any legal representative of
such employee, or upon any collective bargaining agent, any rights or remedies, including any right
to employment or continued employment for any specified period, of any nature or kind whatsoever
under or by
reason of this Agreement. Nothing in this Agreement shall be deemed to confer upon any person
(nor any beneficiary thereof) any rights under or with respect to any plan, program or arrangement
described in or contemplated by this Agreement, and each person (and any beneficiary thereof) shall
be entitled to look only to the express terms of any such plan, program or arrangement for his or
her rights thereunder. Nothing in this Agreement shall cause Purchaser or its Affiliates, or
Seller or its Affiliates, to have any obligation to provide employment or any employee benefits to
any individual who is not a Transferred Employee or to continue to employ any Transferred Employee
for any period of time after the Closing subject to limitations contained in any union contract or
collective bargaining agreement. This Agreement does not create any right of an employee or union
to object or to refuse to assent to Seller’s assignment of or Purchaser’s assumption of or
succession to any employment agreement, union contract, collective bargaining agreement, or other
agreement relating to conditions of employment, employment separation, severance or employee
benefits, nor shall this Agreement be construed as recognizing that any such rights exist.

          8.4
Employee Information. Prior to the Closing Date and as of a date not sooner than
five (5) Business Days prior to the Closing Date, Seller shall deliver to Purchaser an update of
the information contained in Section 5.11(f) of the Seller Disclosure Schedule.

          8.5
Cooperation. Seller and Purchaser agree to cooperate fully with respect to the
actions necessary to effect the transactions contemplated in this Article VIII, including
the provision of records (including payroll, attendance, performance and discipline records) and
information as each may reasonably request from the other.

          8.6
Employee Obligations of Confidentiality. Notwithstanding anything to the contrary
contained in this Agreement, Seller shall retain the right, after the Closing Date, to enforce
agreements with its current or former Employees, consultants, and contractors related to
Intellectual Property that is not part of the Purchased Assets.

ARTICLE IX

CONDITIONS TO CLOSING

          9.1 Conditions Precedent to Obligations of Purchaser.

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               The obligation of Purchaser or Purchaser Designee to consummate the transactions contemplated
by this Agreement is subject to the fulfillment, on or prior to the Closing Date or the FCC
Licenses Closing Date, as applicable, of each of the following conditions (any or all of which may
be waived by Purchaser in whole or in part to the extent permitted by applicable Law):

               (a) the representations and warranties of Seller set forth in this Agreement qualified as to
materiality shall be true and correct, and those not so qualified shall be true and correct in all
material respects, at and as of the Closing Date as though made on the Closing Date except to the
extent such representations and warranties relate to an earlier date (in which case such
representations and warranties qualified as to materiality shall be true and correct, and those not
so qualified shall be true and correct in all material respects, on and as of such earlier date),
and Purchaser shall have received a certificate signed by an authorized officer of Seller, dated
the Closing Date to the foregoing effect; provided, however, that solely with
respect to an FCC Licenses Closing that is not contemporaneous with the Closing, the
representations and warranties of Seller set forth in Sections 5.1, 5.2 and 5.6 that are
qualified as to materiality shall be true and correct solely as they relate to the Licenses, and
those not so qualified shall be true and correct in all material respects solely as they relate to
the Licenses, at and as of the FCC Licenses Closing Date, as though made on the FCC Licenses
Closing Date except to the extent such representations and warranties relate to an earlier date (in
which case such representations and warranties qualified as to materiality shall be true and
correct, and those not so qualified shall be true and correct in all material respects, on and as
of such earlier date), and Purchaser shall have received a certificate signed by an authorized
officer of Seller, dated the FCC Licenses Closing Date to the foregoing effect;

               (b) Seller shall have performed and complied in all material respects with all obligations and
agreements required in this Agreement to be performed or complied with by it prior to the Closing
Date or the FCC Licenses Closing Date, as applicable, and Purchaser shall have received a
certificate signed by an authorized officer of Seller, dated the Closing Date or the FCC Licenses
Closing Date, as applicable, to the foregoing effect;

               (c) during the period from the date hereof to the Closing Date, there shall not have been any
Material Adverse Effect, and Purchaser shall have received a certificate signed by an authorized
officer of Seller, dated the Closing Date to the foregoing effect;

               (d) there shall not be in effect any Order by a Governmental Body of competent jurisdiction
restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated
hereby;

               (e) with respect to the FCC Licenses, either (i) the FCC Consent to the Foreign Ownership
Application and the Assignment Applications shall have been granted by the FCC, or (ii) the FCC
shall have granted its consent to the assignment of the FCC Licenses to the third party designated
by Purchaser pursuant to Section 7.5(d)(iii); provided, however, that if
neither of the conditions set forth in clauses (i) and (ii) of this paragraph have been satisfied
by the date that is one hundred (100) days after the date hereof, the Closing shall proceed as to
all Purchased Assets except for the FCC

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Licenses, which shall be the subject of the separate FCC
Licenses Closing, provided that the Short Term Lease contemplated by Section 7.5(d)(X)
shall have been effective on or prior to the Closing Date;

               (f) all consents of third parties set forth on Schedule 9.1(f) shall have been
obtained;

               (g) there shall not have occurred and be continuing on the Closing Date (i) a declaration of a
banking moratorium or any suspension of payments in respect of banks in the United States (whether
or not mandatory) or (ii) any limitation (whether or not mandatory) by any United States
Governmental Body on the extension of credit by banks or other financial institutions;

               (h) Seller shall have delivered to Purchaser evidence reasonably satisfactory to Purchaser
that those Liens identified on Schedule 9.1(h) have been removed or will be removed on the
Closing Date upon the payment of the Cash Consideration to Seller;

               (i) Seller shall have delivered a certificate, dated the Closing Date, executed by any vice
president or the secretary or any assistant secretary of Seller, including (i) a copy of the
resolutions of the Board of Directors of Seller authorizing the execution, delivery and performance
of this Agreement and the other Seller Documents to which it is a party, certified by the secretary
or an assistant secretary of Seller as of the Closing Date, and which shall state that the
resolutions thereby certified have not been amended, modified, revoked or rescinded and (ii) an
incumbency certificate from Seller, dated the Closing Date, as to the incumbency and signature of
the officers of Seller executing this Agreement or any Seller Document;

               (j) Seller shall have delivered to Purchaser a duly executed copyright security agreement in
the form of Exhibit A-2 (the “Copyright Security Agreement”);

               (k) Seller shall have delivered to Purchaser a duly executed trademark security agreement in
the form of Exhibit A-3 (the “Trademark Security Agreement”);

               (l) Seller shall have delivered to Purchaser a duly executed patent security agreement in the
form of Exhibit A-4 (the “Patent Security Agreement”);

               (m) Seller shall have delivered to Purchaser a duly executed contracts security agreement in
the form of Exhibit A-5 (the “Contracts Security Agreement”);

               (n) Seller shall have delivered to Purchaser a duly executed membership pledge agreement in
the form of Exhibit A-6 (the “Pledge Agreement”);

               (o) Seller shall have delivered to Purchaser a duly executed bill of sale in the form of
Exhibit B (the “Bill of Sale”);

               (p) Seller shall have delivered to Purchaser a duly executed assignment and assumption
agreement in the form of Exhibit C (the “Assignment and Assumption Agreement”);

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               (q) Seller shall have delivered to Purchaser a duly executed assignment of copyright agreement
in the form of Exhibit D (the “Copyright Assignment”);

               (r) Seller shall have delivered to Purchaser a duly executed assignment of trademark agreement
in the form of Exhibit E (the “Trademark Assignment”);

               (s) Seller shall have delivered to Purchaser a duly executed assignment of patent agreement in
the form of Exhibit F (the “Patent Assignment”);

               (t) Seller shall have delivered to Purchaser a pager fulfillment agreement in the form of
Exhibit G (the “Pager Agreement”), duly executed by Seller;

               (u) Seller shall have delivered to Purchaser a sub-lease agreement relating to Seller’s
facilities at Clinton Mississippi, in the form of Exhibit H-1 (the “Clinton Sub-Lease
Agreement”), duly executed by Seller, together with a landlord estoppel certificate
substantially in the form of Exhibit H-2 duly executed by the landlord of such facilities,
with such changes therein as reasonably approved by Purchaser;

               (v) Seller shall have delivered to Purchaser an assignment agreement relating to Seller’s
facilities at 188 E. Capitol Street, Jackson Mississippi, in the form of Exhibit I-1 (the
“Jackson Lease Assignment Agreement”), or a sub-lease agreement relating to such facilities
at 188 E. Capitol Street, Jackson, Mississippi, in the form of Exhibit I-2 (the
“Jackson Sub-Lease Agreement”), duly executed by Seller, together with a landlord estoppel
certificate substantially in the form of Exhibit I-3 duly executed by the landlord of such
facilities, with such changes therein as reasonably approved by Purchaser;

               (w) Seller shall have delivered to Purchaser an Access and License Agreement in the form of
Exhibit J (the “Access Agreement”), duly executed by Seller;

               (x) At either the Closing or the FCC Licenses Closing, as applicable, Seller shall have
delivered to Purchaser, or to the Sister Subsidiary or other Purchaser Designee, a duly executed
instrument of assignment of the FCC Licenses in the form of Exhibit K (the “Instrument
of Assignment”);

               (y) Seller shall have delivered to Purchaser a duly executed subcontract of Seller’s agreement
with the United States General Services Administration in the form of Exhibit L (the
“Subcontract for GSA Agreement”);

               (z) Seller shall have delivered to Purchaser a Transition Services Agreement in the form of
Exhibit M (the “Transition Services Agreement”), duly executed by Seller; and

               (aa) Seller shall have received the Lender Consents.

          9.2
Conditions Precedent to Obligations of Seller. The obligations of Seller to
consummate the transactions contemplated by this Agreement are subject to the fulfillment, prior to
or on the Closing Date or the FCC Licenses Closing Date, as applicable, of each of the following
conditions (any or all of which may be waived by Seller in whole or in part to the extent permitted
by applicable Law):

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               (a) the representations and warranties of Purchaser set forth in this Agreement qualified as
to materiality shall be true and correct, and those not so qualified shall be true and correct in
all material respects, at and as of the Closing Date or the FCC Licenses Closing Date, as
applicable, as though made on the Closing Date or the FCC Licenses Closing Date, as
applicable, except to the extent such representations and warranties relate to an earlier date
(in which case such representations and warranties qualified as to materiality shall be true and
correct, and those not so qualified shall be true and correct in all material respects, on and as
of such earlier date), and Seller shall have received a certificate signed by an authorized officer
of Purchaser, dated the Closing Date or the FCC Licenses Closing Date, as applicable, to the
foregoing effect;

               (b) the representations and warranties of Purchaser set forth in the Note shall be true and
correct in all material respects, at and as of the Closing Date, and Seller shall have received a
certificate signed by an authorized officer of Purchaser, dated the Closing Date, to the foregoing
effect;

               (c) Purchaser shall have performed and complied in all material respects with all obligations
and agreements required by this Agreement to be performed or complied with by Purchaser on or prior
to the Closing Date or the FCC Licenses Closing Date, as applicable, and Seller shall have received
a certificate signed by an authorized officer of Purchaser, dated the Closing Date or the FCC
Licenses Closing Date, as applicable, to the foregoing effect;

               (d) there shall not be in effect any Order by a Governmental Body of competent jurisdiction
restraining, enjoining or otherwise prohibiting the consummation of the transactions contemplated
hereby;

               (e) Seller shall have obtained consents of third parties to the assignment by Seller of a
number of Tower Site Leases such that, together with those Tower Site Leases not requiring consent
to the assignment thereof, Purchaser shall obtain at Closing valid leasehold rights to use a
minimum of sixty five percent (65%) of the communication sites not owned by Seller but used by
Seller in the operation of the Business as of the Closing Date;

               (f) with respect to the FCC Licenses, either(i) the FCC Consent to the Foreign Ownership
Application and the Assignment Applications shall have been granted by the FCC, or (ii) the FCC
shall have granted its consent to the assignment of the FCC Licenses to the third party designated
by Purchaser pursuant to Section 7.5d)(iii); provided, however, that if
neither of the conditions set forth in clauses (i) and (ii) of this paragraph have been satisfied
by the date that is one hundred (100) days after the date hereof, the Closing shall proceed as to
all Purchased Assets except for the FCC Licenses, which shall be the subject of the separate FCC
Licenses Closing, provided that the Short Term Lease contemplated by Section 7.5(d)(X)
shall have been effective on or prior to the Closing Date;

               (g) Purchaser shall have delivered, or caused to be delivered, to Seller evidence of the wire
transfer of the Cash Consideration;

               (h) Purchaser shall have delivered to Seller the Assignment and Assumption Agreement, duly
executed by Purchaser;

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               (i) Purchaser shall have delivered to Seller the Note, duly executed by Purchaser;

               (j) Purchaser shall have delivered to Seller the Copyright Security Agreement, duly executed
by Purchaser;

               (k) Purchaser shall have delivered to Seller the Trademark Security Agreement, duly executed
by Purchaser;

               (l) Purchaser shall have delivered to Seller the Patent Security Agreement, duly executed by
Purchaser;

               (m) Purchaser shall have delivered to Seller the Contracts Security Agreement, duly executed
by Purchaser;

               (n) Purchaser shall have delivered to Seller the Pledge Agreement, duly executed by Purchaser;

               (o) Purchaser shall have delivered to Seller the Copyright Assignment, duly executed by
Purchaser;

               (p) Purchaser shall have delivered to Seller the Trademark Assignment, duly executed by
Purchaser;

               (q) Purchaser shall have delivered to Seller the Patent Assignment, duly executed by
Purchaser;

               (r) Purchaser shall have delivered to Seller the Pager Assignment, duly executed by Purchaser;

               (s) Purchaser shall have delivered to Seller the Clinton Sub-Lease Agreement, duly executed by
Purchaser;

               (t) Purchaser shall have delivered to Seller the Jackson Lease Assignment Agreement or the
Jackson Sub-Lease Agreement, duly executed by Purchaser;

               (u) Purchaser shall have delivered to Seller the Access Agreement, duly executed by Purchaser;

               (v) At the Closing or the FCC Licenses Closing, as applicable, Purchaser or the Sister
Subsidiary or other Purchaser Designee shall have delivered to Seller the Instrument of Assignment,
duly executed, as applicable, by Purchaser or the Sister Subsidiary or other Purchaser Designee;

               (w) Purchaser shall have delivered to Seller the Subcontract for GSA Agreement, duly executed
by Purchaser;

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               (x) Purchaser shall have delivered to Seller the Transition Services Agreement, duly executed
by Purchaser; and

               (y) Seller shall have received the Lender Consents.

          9.3
Frustration of Closing Conditions. Neither Seller nor Purchaser may rely on the
failure of any condition set forth in Section 9.1 or 9.2, as the case may be, if
such failure was caused by such party’s failure to comply with any provision of this Agreement.

ARTICLE X

INDEMNIFICATION

          10.1 Survival of Representations and Warranties

               (a) The representations and warranties of Purchaser and Seller contained in this Agreement
shall survive the Closing solely for purposes of this Article X and such representations
and warranties shall terminate at the close of business on the date that is fifteen (15) months
after the Closing Date; provided, however, that (i) the representations and
warranties contained in Sections 5.1 (Organization and Good Standing), 5.2
(Authorization), 5.5(a) (Title), 5.23 (Financial Advisors), 6.1
(Organization and Good Standing), 6.2 (Authorization) and 6.5 (Financial Advisors),
shall survive the Closing and remain in effect indefinitely and (ii) the representations and
warranties contained in Sections 5.11 (Labor), 5.12 (Environmental Matters),
5.17 (Taxes) and 5.22 (Benefits) shall survive the Closing until 60 days after the
expiration of the applicable statute of limitations with respect to the particular matter that is
the subject matter thereof. Any claim for indemnification with respect to any of such matters
which is not asserted by notice containing sufficient detail as to allow the claim to be evaluated
(and including a good faith estimate of the amount of such claim) given as herein provided relating
thereto within such specified period of survival may not be pursued; provided,
however, that this sentence shall not apply to any claim with respect to Excluded
Liabilities or any other claim that is not based on breach of representation and warranty.

               (b) All of the covenants or other agreements of the parties contained in this Agreement shall
survive until fully performed or fulfilled, unless and to the extent only that non-compliance with
such covenants or agreements is waived in writing by the party entitled to such performance. No
claim for a breach of a covenant or other agreement set forth in this Agreement that (i) by its
nature is required to be performed by or prior to the Closing (the “Pre-Closing Covenants”)
may be made or brought by any party hereto more than six (6) months after the Closing Date and
(ii) by their nature are required to be performed after the Closing (the “Post-Closing
Covenants”) may be made or brought by any party hereto after the one year anniversary of the
last date on which each such Post-Closing Covenant was required to be performed (in each case, a
“Survival Period”); provided, however, that any obligation to indemnify and
hold harmless shall not terminate with respect to any Losses to which the Person to be indemnified
shall have given notice in writing setting forth the specific claim and the basis therefor in
reasonable detail to the indemnifying party before the termination of the applicable Survival
Period.

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          10.2 Indemnification by Seller.

               Subject to Sections 7.11 and 10.5, Seller hereby agrees to indemnify and hold
Purchaser and its directors, officers, employees, Affiliates, stockholders, agents, attorneys,
representatives, successors and permitted assigns (collectively, the “Purchaser Indemnified
Parties”) harmless from and against any and all losses, liabilities, claims, demands,
judgments, damages, fines, suits, actions, costs and expenses (individually, a “Loss” and,
collectively, “Losses”) arising out of, based upon, attributable to or resulting from:

          (i) the failure of any of the representations or warranties made by Seller in this
Agreement to be true and correct in all respects at and as of the Closing Date;

          (ii) the breach of, or non-compliance with, any Pre-Closing Covenant on the part of
Seller;

          (iii) the breach of, or non-compliance with, any Post-Closing Covenant on the part of
Seller;

          (iv) any Excluded Asset or any Excluded Liability; and

          (v) all actions, suits, proceedings, demands, assessments, judgments, costs, penalties
and expenses, including reasonable attorneys’ fees, incident to the foregoing.

          10.3 Indemnification by Purchaser.

               Subject to Section 10.5, Purchaser hereby agrees to indemnify and hold Seller and its
directors, officers, employees, Affiliates, agents, attorneys, representatives, successors and
permitted assigns (collectively, the “Seller Indemnified Parties”) harmless from and
against any and all Losses arising out of, based upon, attributable to or resulting from:

          (i) the failure of any of the representations or warranties made by Purchaser in this
Agreement to be true and correct in all respects at and as of the Closing Date;

          (ii) the breach of, or non-compliance with, any Pre-Closing Covenant on the part of
Purchaser or Purchaser Designee;

          (iii) the breach of, or non-compliance with, any Post-Closing Covenant on the part of
Purchaser or Purchaser Designee;

          (iv) any Assumed Liability;

          (v) any Purchased Asset or Purchaser’s or Purchaser Designee’s operation of the
Business after the Closing Date, except to the extent that Purchaser or Purchaser Designee
would otherwise have a claim for indemnification against Seller pursuant to this Agreement;
and

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          (vi) all actions, suits, proceedings, demands, assessments, judgments, costs, penalties
and expenses, including reasonable attorneys’ fees, incident to the foregoing.

          10.4
Indemnification Procedures. All claims for indemnification by an Indemnified Party
pursuant to this Article X shall be asserted and resolved as follows:

               (a) Third Party Claims. In the event that any Legal Proceedings shall be instituted
or that any claim or demand shall be asserted by any third party in respect of which payment may be
sought under Sections 10.2 and 10.3 (regardless of the limitations set forth in
Section 10.5) (a “Third Party Claim”), the Indemnified Party shall promptly cause
written notice of the assertion of any Third Party Claim of which it has knowledge and which is
covered by this Article X to be forwarded to the Indemnifying Party. The failure of the
Indemnified Party to give reasonably prompt notice of any Third Party Claim shall not release,
waive or otherwise affect the Indemnifying Party’s indemnification obligations with respect thereto
except to the extent that the Indemnifying Party is prejudiced as a result of such failure. The
Indemnifying Party shall have the right, at its sole option and expense, to be represented by
counsel of its choice, which must be reasonably satisfactory to the Indemnified Party, and to
defend against, negotiate, settle or otherwise deal with any Third Party Claim which relates to any
Losses indemnified against by it hereunder. If the Indemnifying Party elects to defend against,
negotiate, settle or otherwise deal with any Third Party Claim which relates to any Losses
indemnified against by it hereunder, it shall within 30 days (or sooner, if the nature of the Third
Party Claim so requires) notify the Indemnified Party of its intent to do so; provided,
however, that if Seller is the indemnifying party that defends against, negotiates, settles
or otherwise deals with such Third Party Claim, the attorneys’ fees and other Losses incurred by
Seller in connection with such defense, negotiation, settlement or other dealings shall reduce (by
the amount thereof) the amount recoverable under the Cap by Purchaser Indemnified Parties from
Seller but only to the extent, if any, that the Cap is applicable to such Third Party Claim. If
the Indemnifying Party elects not to defend against, negotiate, settle or otherwise deal with any
Third Party Claim which relates to any Losses indemnified against hereunder, the Indemnified Party
may defend against, negotiate, settle or otherwise deal with such Third Party Claim. If the
Indemnifying Party shall assume the defense of any Third Party Claim, the Indemnified Party may
participate, at his or its own expense, in the defense of such Third Party Claim; provided,
however, that the Indemnified Party shall be entitled to participate in any such defense
with separate counsel at the expense of the Indemnifying Party if (i) so requested by the
Indemnifying Party to participate or (ii) in the reasonable opinion of counsel to the Indemnified
Party, a conflict or potential conflict exists between the Indemnified Party and the Indemnifying
Party that would make such separate representation advisable; and provided,
further, that the Indemnifying Party shall not be required to pay for more than one such
counsel (plus any appropriate local counsel) for all Indemnified Parties in connection with any
Third Party Claim.
The parties hereto agree to cooperate fully with each other in connection with the defense,
negotiation or settlement of any Third Party Claim. Notwithstanding anything in this
Section 10.8 to the contrary, neither the Indemnifying Party nor the Indemnified Party
shall, without the written consent of the other party (which consent shall not be unreasonably
withheld, conditioned or delayed), settle or compromise any Third Party Claim or permit a default
or consent to entry of any judgment unless the claimant and such party provide to such other party
an unqualified release from all liability in respect of the Third Party Claim. Notwithstanding the

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foregoing, if a settlement offer solely for money damages is made by the applicable third party
claimant, and the Indemnifying Party notifies the Indemnified Party in writing of the Indemnifying
Party’s willingness to accept the settlement offer and, subject to the applicable limitations of
Sections 10.5 and 10.6, pay the amount called for by such offer, and the
Indemnified Party declines to accept such offer, the Indemnified Party may continue to contest such
Third Party Claim, free of any participation by the Indemnifying Party, and the amount of any
ultimate liability with respect to such Third Party Claim that the Indemnifying Party has an
obligation to pay hereunder shall be limited to the lesser of (A) the amount of the settlement
offer that the Indemnified Party declined to accept plus the Losses of the Indemnified Party
relating to such Third Party Claim up to the date of its rejection of the settlement offer or
(B) the aggregate Losses of the Indemnified Party with respect to such Third Party Claim. If the
Indemnifying Party makes any payment on any Third Party Claim, the Indemnifying Party shall be
subrogated, to the extent of such payment, to all rights and remedies of the Indemnified Party to
any insurance benefits or other claims of the Indemnified Party with respect to such Third Party
Claim.

               (b) Disputes. The parties agree that any controversy, claim or dispute arising out of
or relating to or in connection with this Agreement, including any dispute regarding the breach,
termination, enforceability or validity hereof (each, a “Dispute”) should be regarded as a
business problem to be resolved promptly through business-oriented negotiations before resorting to
legal action in accordance with the provisions of Section 11.2. The parties therefore
agree to attempt in good faith to resolve any Dispute promptly by negotiation between the
executives of the parties who have authority to settle the Dispute. Such negotiations shall
commence upon the mailing of a notice (the “Dispute Notice”) from the appropriate executive
of the requesting party to an appropriate executive of the responding party and containing (i) a
brief description of the circumstances supporting such Indemnified Party’s belief that there is or
has been a Dispute and (ii) a non-binding, preliminary estimate of the aggregate dollar amount of
the actual and potential Losses that have arisen and may arise as a direct or indirect result of
such Dispute. If the Dispute has not been resolved by these Persons within thirty (30) days of the
date of the Dispute Notice, unless the parties mutually agree in writing to a longer period, the
Dispute shall be referred to the chief executive officer of each of Seller and Purchaser, for
discussion and negotiation among them. In the event the Dispute has still not been resolved by
negotiation within forty-five (45) days of the date of the Dispute Notice, then either party
thereto may commence legal action in accordance with Section 11.2. All negotiations
pursuant to this Section 10.4 shall be confidential and shall be treated as compromise and
settlement negotiations for purposes of applicable rules of evidence and shall not be used for, or
admitted in, any arbitration or court proceedings under this Agreement. Nothing contained in this
Section 10.4 shall preclude a party from seeking injunctive relief if the prerequisites to
obtaining injunctive relief, including irreparable harm, are otherwise satisfied.

               (c) Payment. After any final decision, judgment or award shall have been rendered by
a Governmental Body of competent jurisdiction and the expiration of the time in which to appeal
therefrom, or a settlement shall have been consummated, or the Indemnified Party and the
Indemnifying Party shall have arrived at a mutually binding agreement with respect to an
indemnification claim hereunder, the Indemnified Party shall forward to the Indemnifying Party
notice of any sums due and owing by the Indemnifying Party pursuant to this Agreement

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with respect
to such matter (a “Demand”). Thereafter, payment of the amounts set forth in the Demand
shall be made as follows:

          (i) In the case of Seller, within five (5) days of Seller’s receipt of the Demand,
Purchaser may, in its sole discretion, first offset the amount of the Losses attributable to
Seller through Purchaser’s right of offset pursuant to the terms and conditions of the Note.
To the extent that Purchaser does not so elect to offset or that the amount of Losses
exceeds the maximum amount available to be offset under the terms of the Note or if
Purchaser no longer has any right to offset against the Note, Seller shall pay the
difference to the applicable Purchaser Indemnified Party.

          (ii) In the case of Purchaser, within five (5) days of Purchaser’s receipt of the
Demand, Purchaser shall pay the entire amount of the Losses to the applicable Seller
Indemnified Party.

          10.5 Certain Limitations on Indemnification.

               (a) Except as set forth in Section 10.5(b), notwithstanding the provisions of this
Article X, neither Seller nor Purchaser shall have any indemnification obligations for
Losses under Section 10.2(a)(i), Section 10.2(a)(v) (as such section relates to
Section 10.2(a)(i)), Section 10.3(a)(i) or Section 10.3(a)(vi) (as such
section relates to Section 10.3(a)(i)) unless the aggregate amount of all such Losses
exceeds $100,000 (the “Basket”), and then only to the extent of such excess. Subject to
Section 10.5(b), in no event shall the aggregate indemnification to be paid by Seller under
this Article X for Losses under Section 10.2(a)(i) and Section 10.2(a)(v)
(as such section relates to Section 10.2(a)(i)) (other than with respect to Losses arising
out of a breach by Seller of the representations and warranties set forth in Sections 5.1
(Organization), 5.2 (Authorization), 5.5(a) (Title), 5.11 (Labor),
5.12 (Environmental), 5.17 (Taxes), 5.22 (Benefits), and 5.23
(Financial Advisors)), exceed $8,000,000 (the “Cap”).

               (b) Notwithstanding anything in this Article X, the limitation requiring notice of any
indemnification claim within a specific time period set forth in Sections 10.1(a) and
10.1(b) and the Cap, Basket and other limitations set forth in Section 10.5(a),
shall not apply to claims for indemnification in respect of Losses arising under the
representations and warranties set forth in Sections 5.2, 5.5(a), 5.17,
5.23, 6.2 and 6.5 or related to or arising out of the matters set forth in
Sections 10.2(a)(ii)-(iv), Section 10.2(a)(v) (other than as such section relates
to Section 10.2(a)(i)), 10.3(a)(ii)-(v) or Section 10.3(a)(vi) (other than as such
section relates to Section 10.3(a)(i)), or to claims alleging fraud, intentional misrepresentation
or willful misconduct.

               (c) Seller shall not be required to indemnify any Purchaser Indemnified Party and Purchaser
shall not be required to indemnify any Seller Indemnified Party to the extent of
any Losses that a court of competent jurisdiction shall have determined by final judgment to
have resulted from the bad faith, gross negligence or willful misconduct of the party seeking
indemnification.

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               (d) Purchaser shall not make any claim for indemnification under this Agreement in respect of
any matter that is expressly taken into account in the calculation of any adjustment to the
Purchase Price pursuant to Section 3.2.

               (e) Seller shall not be required to indemnify any Purchaser Indemnified Party under
Section 10.2(a)(i) or under Section 10.2(a)(v) (as such section relates to
Section 10.2(a)(i)), to the extent that such obligation arises directly from an event, fact
or circumstance that meets all of the following criteria: (i) such event, fact or circumstance
arose after the date hereof; (ii) such event, fact or circumstance was specifically disclosed in
writing by Seller to the Purchaser prior to the Closing Date with specific reference to this
Section 10.5(e) and (iii) either (A) it is reasonably apparent from the description of such
event, fact or circumstance provided by Seller that such event, fact or circumstance has resulted
in or is reasonably likely to result in a Material Adverse Effect by the Closing Date or (B) it is
reasonably apparent from the description of such event, fact or circumstance provided by Seller
that such event factor or circumstance will cause Seller’s representation and warranty in
Section 5.14 to be untrue as of the Closing Date. Nothing in this Section 10.5(e)
shall affect Purchaser’s rights to insist that all conditions set forth in Section 9.1 be
satisfied prior to Closing.

          10.6 Calculation of Losses.

               (a) The amount of any Losses for which indemnification is provided under this Article
X shall be net of any amounts actually recovered by the indemnified party under insurance
policies with respect to such Losses (net of any Taxes or expenses incurred in connection with such
recovery). Purchaser shall use its commercially reasonable efforts to recover under insurance
policies for any Losses prior to seeking payment of indemnification under this Agreement. Nothing
in this Agreement shall create any obligation whatsoever for Purchaser to maintain any insurance.

               (b) Notwithstanding anything to the contrary elsewhere in this Agreement, no party shall, in
any event (other than in the case of fraud, intentional misrepresentation or willful misconduct),
be liable to any other Person for any incidental, indirect, special or punitive damages;
provided, however, that this sentence shall not apply to any incidental, indirect,
special or punitive damages alleged or recovered by a third party pursuant to a claim against any
Indemnified Party.

          10.7
Tax Treatment of Indemnity Payments. Seller and Purchaser agree to treat any
indemnity payment made pursuant to this Article X as an adjustment to the Purchase Price on
their Tax Returns to the extent permitted by applicable Law.

          10.8
Exclusive Remedy. From and after the Closing, the sole and exclusive remedy of Seller or Purchaser for any
breach or failure to be true and correct, or alleged breach or failure to be true and correct, of
any representation or warranty or any covenant or agreement in this Agreement, shall be
indemnification in accordance with this Article X, Seller’s rights and remedies under the
Loan Documents and Purchaser’s right of offset as set forth in the Note. In furtherance of the
foregoing, each of Seller and Purchaser waives, to the fullest extent permitted by applicable Law,
any and all other rights, claims and causes of action (including rights of contributions, if any)
known or unknown, foreseen or unforeseen, which exist or may arise in the

60

 

future, that it may have
against Seller or Purchaser, as the case may be, arising under or based upon any federal, state or
local Law (including any such Law relating to environmental matters or arising under or based upon
any securities Law, common Law or otherwise). Notwithstanding the foregoing, this Section
10.8 shall not operate to (i) limit any claims alleging fraud, intentional misrepresentation or
willful misconduct, (ii) interfere with or impede the operation of the provisions of Article
III providing for the payment of monies or the resolutions of disputes relating thereto, or
(iii) limit the rights of the parties to seek equitable remedies (including specific performance or
injunctive relief).

ARTICLE XI

MISCELLANEOUS

          11.1
Expenses. Except as otherwise provided in this Agreement, each of Seller and
Purchaser shall bear its own expenses incurred in connection with the negotiation and execution of
this Agreement and each other agreement, document and instrument contemplated by this Agreement and
the consummation of the transactions contemplated hereby and thereby.

          11.2 Submission to Jurisdiction; Consent to Service of Process.

               (a) With respect to any Dispute that has not been resolved pursuant to Section 10.4,
the parties hereto hereby irrevocably submit to the exclusive jurisdiction of any federal or state
court located within the City and State of New York over any dispute arising out of or relating to
this Agreement or any of the transactions contemplated hereby and each party hereby irrevocably
agrees that all claims in respect of such dispute or any suit, action proceeding related thereto
may be heard and determined in such courts. The parties hereby irrevocably waive, to the fullest
extent permitted by applicable Law, any objection which they may now or hereafter have to the
laying of venue of any such dispute brought in such court or any defense of inconvenient forum for
the maintenance of such dispute. Each of the parties hereto agrees that a judgment in any such
dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner
provided by law.

               (b) Each of the parties hereto hereby consents to process being served by any party to this
Agreement in any suit, action or proceeding by the delivery of a copy thereof in accordance with
the provisions of Section 11.5.

               (c) EACH OF THE PARTIES TO THIS AGREEMENT HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (i) ARISING UNDER
THIS AGREEMENT OR (ii) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
PARTIES HERETO IN RESPECT OF THIS AGREEMENT OR ANY OF THE TRANSACTIONS RELATED HERETO, IN EACH CASE
WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE.
EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND,
ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES TO
THIS AGREEMENT MAY FILE AN

61

 

ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY
JURY.

          11.3
Entire Agreement. This Agreement (including the schedules and exhibits hereto) and
the Confidentiality Agreement represent the entire understanding and agreement between the parties
hereto with respect to the subject matter hereof and thereof. This Agreement can be amended,
supplemented or changed, and any provision hereof can be waived, only by written instrument making
specific reference to this Agreement signed by the party against whom enforcement of any such
amendment, supplement, modification or waiver is sought. No action taken pursuant to this
Agreement, including any investigation by or on behalf of any party, shall be deemed to constitute
a waiver by the party taking such action of compliance with any representation, warranty, covenant
or agreement contained herein. The waiver by any party hereto of a breach of any provision of this
Agreement shall not operate or be construed as a further or continuing waiver of such breach or as
a waiver of any other or subsequent breach. No failure on the part of any party to exercise, and
no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of such right, power or remedy by such party preclude any
other or further exercise thereof or the exercise of any other right, power or remedy.

          11.4
Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of New York applicable to contracts made and performed in such State
without giving effect to the choice of law principles of such State that would require or permit
the application of the laws of another jurisdiction.

          11.5
Notices. All notices and other communications under this Agreement shall be in
writing and shall be deemed given (i) when delivered personally by hand (with written confirmation
of receipt), (ii) when sent by facsimile (with written confirmation of transmission) or (iii) one
Business Day after the day sent by overnight courier (with written confirmation of receipt), in
each case at the following addresses and facsimile numbers (or to such other address or facsimile
number as a party may have specified by notice given to the other party pursuant to this
provision):

If to Purchaser, to:

Velocita Wireless LLC

10 Woodbridge Center Drive

Woodbridge, New Jersey 07095

Attention: President

Facsimile: (732) 602-5450

with copies (which shall not constitute notice) to:

62

 

By Mail or Facsimile

Day Pitney LLP

P.O. Box 1945

Morristown, New Jersey 07962-1945

Attention: Henry Nelson Massey

Facsimile: (973) 966-1550

By Hand or Overnight Delivery

Day Pitney LLP

200 Campus Drive

Florham Park, New Jersey 07932

Attention: Henry Nelson Massey

If to Seller, to:

Bell Industries, Inc.

8888 Keystone Crossing, Suite 1700

Indianapolis, Indiana 46240

Facsimile: (317) 715-6790

Attention: Chief Executive Officer

with a copy (which shall not constitute notice) to:

Manatt, Phelps & Phillips, LLP

11355 W. Olympic Boulevard

Los Angeles, California 90064

Facsimile: (310) 914-5712

Attention: Mark J. Kelson

          11.6
Severability. If any term or other provision of this Agreement is invalid,
illegal, or incapable of being enforced by any law or public policy, all other terms or provisions
of this Agreement shall nevertheless remain in full force and effect so long as the economic or
legal substance of the transactions contemplated hereby is not affected in any manner materially
adverse to any party. Upon such determination that any term or other provision is invalid, illegal, or incapable of
being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to
effect the original intent of the parties as closely as possible in an acceptable manner in order
that the transactions contemplated hereby are consummated as originally contemplated to the
greatest extent possible.

          11.7
Binding Effect; Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties and their respective successors and permitted assigns. Nothing in this
Agreement shall create or be deemed to create any third party beneficiary rights in any person or
entity not a party to this Agreement except as provided below. Except for assignments by Purchaser
to effectuate provisions of Section 7.5 or as otherwise contemplated herein, no assignment
of this Agreement or of any rights or obligations hereunder may be made by either Seller or
Purchaser, directly or indirectly (by operation of law or otherwise), without the prior written
consent of the other parties hereto and any attempted assignment without the required

63

 

consents
shall be void. No assignment of any obligations hereunder shall relieve the parties hereto of any
such obligations.

          11.8
Non-Recourse. No past, present or future director, officer, employee,
incorporator, member, partner, stockholder, Affiliate, agent, attorney or representative of Seller
or its Affiliates shall have any liability for any obligations or liabilities of Seller under this
Agreement or the Seller Documents of or for any claim based on, in respect of, or by reason of, the
transactions contemplated hereby and thereby.

          11.9
Counterparts. This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and all of which, when taken
together, will be deemed to constitute one and the same agreement

64

 

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective authorized officers as of the date first written above.

	 	 	 	 	 
	 	VELOCITA WIRELESS LLC

 	 
	 	By:  	/s/ Mark Hull
 	 
	 	 	Name:  	Mark Hull 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	BELL INDUSTRIES, INC.

 	 
	 	By:  	/s/ Kevin J. Thimjon
 	 
	 	 	Name:  	Kevin J. Thimjon 	 
	 	 	Title:  	President and Chief Financial Officer 	 
	 

65exv4w1

 

Exhibit 4.1

(FACE OF NOTE)

THE NOTES EVIDENCED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933,
AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
EXCEPT (A)(1) TO AT&T INC. (“AT&T”), (2) TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING
FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING
THE REQUIREMENTS OF RULE 144A, (3) IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT (IF
AVAILABLE), (4) TO AN INSTITUTIONAL ACCREDITED INVESTOR IN A TRANSACTION EXEMPT FROM THE
REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, OR (5) PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT, AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF
THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING HEREINAFTER REFERRED TO AND IS REGISTERED IN
THE NAME OF A DEPOSITORY OR A NOMINEE OF A DEPOSITORY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE
OR IN PART FOR SECURITIES IN DEFINITIVE FORM IN ACCORDANCE WITH THE PROVISIONS HEREOF AND THE TERMS
OF THE SECURITIES, THIS GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY
TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER
NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A
NOMINEE OF SUCH SUCCESSOR DEPOSITORY.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO AT&T INC., OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS, IN WHOLE BUT NOT IN PART, TO NOMINEES
OF THE DEPOSITORY TRUST COMPANY OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS
OF PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH ON THE
REVERSE HEREOF.

 

 

AT&T INC.

Floating Rate Notes due 2010

CUSIP NO. 00206R AK8

ISIN NO. US00206R AK86

No. R-1

$500,000,000

     AT&T Inc. (formerly SBC Communications Inc.), a corporation duly organized and existing under
the laws of the State of Delaware (herein called “AT&T), for value received, hereby promises to pay
to Cede & Co., or registered assigns, the principal sum of Five Hundred Million Dollars
($500,000,000) on April 2, 2010 (the “Maturity Date”), and to pay interest on said principal sum
from April 2, 2008 or from the most recent Interest Payment Date to which interest has been paid or
duly provided for, quarterly in arrears on January 2, April 2, July 2 and October 2 in each year,
commencing on July 2, 2008 (each an “Interest Payment Date”) and on the Maturity Date, at an
interest rate (“Interest Rate”) equal to the Applicable LIBOR Rate, reset quarterly, plus 45 basis
points (0.45%); determined as provided herein, until the principal hereof is paid or made available
for payment. The interest so payable, and punctually paid or duly provided for, on any Interest
Payment Date will, as provided herein, be paid to the Person in whose name this Note (or one or
more Predecessor Notes) is registered at the close of business on the Regular Record Date for such
interest, which shall be the close of business on the 15th day preceding the respective
Interest Payment Date (each, a “Regular Record Date”), subject to certain exceptions. Any such
interest not so punctually paid or duly provided for will forthwith cease to be payable to the
Holder on such Regular Record Date and may either be paid to the Person in whose name this Note (or
one or more Predecessor Notes) is registered at the close of business on a Special Record Date for
the payment of such Defaulted Interest to be fixed by AT&T, notice whereof shall be given to
Holders of Notes not less than 15 days prior to such Special Record Date, or be paid at any time in
any other lawful manner not inconsistent with the requirements of any securities exchange on which
the Notes may be listed, and upon such notice as may be required by such exchange.

     The Interest Rate for each Interest Period for the Notes will be set on January 2, April 2,
July 2 and October 2 of each year, and will be set for the initial Interest Period on April 2, 2008
(each such date an “Interest Rate Reset Date”) until the principal on the Notes is paid or made
available for payment (the “Principal Payment Date”). If any Interest Rate Reset Date (other than
the initial Interest Rate Reset Date occurring on April 2, 2008) and Interest Payment Date for the
Notes would otherwise be a day that is not a LIBOR Business Day, such Interest Rate Reset Date and
Interest Payment Date shall be the next succeeding LIBOR Business Day, unless the next succeeding
LIBOR Business Day is in the next succeeding calendar month, in which case such Interest Rate Reset
Date and Interest Payment Date shall be the immediately preceding LIBOR Business Day.

2

 

     “LIBOR Business Day” means any day that is not a Saturday or Sunday and that, in The City of
New York or the City of London, is not a day on which banking institutions are generally authorized
or obligated by law to close. “Interest Period” shall mean the period from and including an
Interest Rate Reset Date to but excluding the next succeeding Interest Rate Reset Date and, in the
case of the last such period, from and including the Interest Rate Reset Date immediately preceding
the Maturity Date or Principal Payment Date, as the case may be, to but not including such Maturity
Date or Principal Payment Date, as the case may be. If the Principal Payment Date or Maturity Date
is not a LIBOR Business Day, then the principal amount of the Notes plus accrued and unpaid
interest thereon shall be paid on the next succeeding Business Day and no interest shall accrue for
the Maturity Date, Principal Payment Date or any day thereafter.

     The “Applicable LIBOR Rate” shall mean the rate determined in accordance with the following
provisions:

     (i) The second day on which dealings in deposits in U.S. dollars are transacted in the
London interbank market preceding each Interest Rate Reset Date shall be an interest
determination date (“Interest Determination Date”).

     (ii) On any Interest Determination Date, LIBOR will be equal to the offered rate for
deposits in U.S. dollars having an index maturity of three months, in amounts of at least
$1,000,000, as such rate appears on “Reuters Page LIBOR01” as reported by Bloomberg
Financial Commodities News at approximately 11:00 a.m., London time, on such Interest
Determination Date. If, on an Interest Determination Date, such rate does not appear on the
“Reuters Page LIBOR01” as of 11:00 a.m., London time, or if the “Reuters Page LIBOR01” is
not available on such date, the Calculation Agent will obtain such rate from Bloomberg
L.P.’s page “BBAM”. If no offered rate appears on “Reuters Page LIBOR01” or Bloomberg L.P.’s
page “BBAM” on an Interest Determination Date at approximately 11:00 a.m., London time, then
the Calculation Agent will select four major banks in the London interbank market and shall
request each of their principal London offices to provide a quotation of the rate at which
three-month deposits in U.S. dollars in amounts of at least $1,000,000 are offered by it to
prime banks in the London interbank market, on that date and at that time, that is
representative of single transactions at that time. If at least two quotations are provided,
LIBOR will be the arithmetic average of the quotations provided. Otherwise, the Calculation
Agent will select three major banks (which may include Redacted) in New York
City and shall request each of them to provide a quotation of the rate offered by them at
approximately 11:00 a.m., New York City time, on the Interest Determination Date for loans
in U.S. dollars to leading European banks having an index maturity of three months for the
applicable interest period in an amount of at least $1,000,000 that is representative of
single transactions at that time. If three quotations are provided, LIBOR will be the
arithmetic average of the quotations provided. Otherwise, the rate of LIBOR for the next
interest period will be set equal to the rate of LIBOR for the then current interest period.

3

 

     The amount of interest for each day that the Notes are outstanding (the “Daily Interest
Amount”) will be calculated by dividing the Interest Rate in effect for such day by 360 and
multiplying the result by the principal amount of the Notes. The amount of interest to be paid on
the Notes for any Interest Period will be calculated by adding the Daily Interest Amounts for each
day in such Interest Period.

     The Interest Rate on the Notes will in no event be higher than the maximum rate permitted by
New York law as the same may be modified by United States law of general application.

     The Interest Rate and amount of interest to be paid on the Notes for each Interest Period will
be determined by the Reference Agent. All calculations made by the Reference Agent shall in the
absence of manifest error be conclusive for all purposes and binding on AT&T and the Holders of the
Notes. So long as the Applicable LIBOR Rate is required to be determined with respect to the
Notes, there will at all times be a Reference Agent. In the event that any then acting Reference
Agent shall be unable or unwilling to act, or that such Reference Agent shall fail duly to
establish the Applicable LIBOR Rate for any Interest Period, or that AT&T proposes to remove such
Reference Agent, AT&T shall appoint itself or another person which is a bank, trust company,
investment banking firm or other financial institution to act as the Reference Agent.

     On December 5, 2008 and on August 5, 2009, Holders of the Notes shall have the right to
require AT&T to purchase all or a portion of their Notes. Each such date is referred to herein as
a “Purchase Date.”

     A Holder of a Note electing to require AT&T to purchase all or a portion of its Notes must
provide notice via phone, facsimile, e-mail or other electronic communication or courier to AT&T at
least 30 calendar days prior to a Purchase Date; provided that if a Holder provides notice of the
foregoing via phone, such Holder shall also provide written notice the following day. Such notice
shall state (i) the portion of the principal amount of the Notes that such Holder is electing to
have purchased, which must be $1,000,000 principal amount or an integral multiple of $1,000,000 in
excess thereof and (ii) that the Notes are to be purchased pursuant to the applicable provisions of
the Notes. Once given, such notice will be irrevocable.

     AT&T’s obligation to pay the purchase price of Notes, for which notice has been delivered, is
conditioned upon the Holder delivering the Notes (through the facilities of The Depository Trust
Company (“DTC”) while the Notes are in global form) to AT&T at any time after delivery of the
notice. AT&T shall cause the purchase price for such Notes to be paid promptly following the later
of the Purchase Date or the time of delivery of the Notes.

     Any Notes purchased by AT&T, at the option of the Holders or otherwise, may not be reissued.

     Any payments of principal, purchase price or interest on this Note that remains unclaimed for
two years after the date upon which the principal, purchase price or interest is due and

4

 

payable, will be repaid to AT&T upon AT&T’s request unless otherwise required by mandatory
provisions of any applicable unclaimed property law. After that time, unless otherwise required by
mandatory provisions of any unclaimed property law, the Holder of this Note will be able to seek
any payment to which such Holder may be entitled to collect only from AT&T.

     Payment of the principal of and any such interest on this Note will be made in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts, including by wire transfer of such payment to the person entitled to
receive such payments as specified in the Notes register maintained by AT&T for such purpose.

     If the Notes are issued in definitive form, payment of the principal or interest on this Note
due at the Maturity Date or a Purchase Date will be made at the Maturity Date or the applicable
Purchase Date, as the case may be, in immediately available funds, upon presentation of this Note
to AT&T.

     The Notes are the unsecured and unsubordinated obligations of AT&T.

     Prior to due presentment of this Note for registration of transfer, AT&T may treat the Person
in whose name this Note is registered as the owner hereof for all purposes, whether or not this
Note be overdue, and AT&T shall not be affected by notice to the contrary.

     Information Required by Rule 144A

     With respect to any proposed sale of this Note under Rule 144A of the Securities Act of 1933,
for so long as AT&T is neither subject to section 13 or 15(d) of the Securities Exchange Act of
1934, nor exempt from reporting pursuant to Rule 12g3-2(b) under the Securities Exchange Act of
1934, AT&T will provide to any Holder and a prospective purchaser designated by such Holder, upon
request of the Holder, the prospective purchaser or a person acting on either of their behalf
within a reasonable time prior to the time of such proposed sale, the information required by Rule
144A(d)(4) of the Securities Act.

     Reference is hereby made to the further provisions of this Note set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as if set forth at
this place.

5

 

     IN WITNESS WHEREOF, AT&T INC. has caused this instrument to be signed in its corporate name,
manually or by facsimile, by its duly authorized officers and has caused its corporate seal to be
imprinted hereon.

	 	 	 	 	 	 	 
	Dated: April 2, 2008	 	AT&T INC.	 	 
	 
	 	 	 	 	 	 
	[SEAL]
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Richard G. Lindner 	 	 
	 

	 	 	 	 

Richard G. Lindner
	 	 
	 

	 	 	 	Senior Executive Vice President	 	 
	 

	 	 	 	and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Jonathan P. Klug 	 	 
	 

	 	 	 	 

Jonathan P. Klug
	 	 
	 

	 	 	 	Senior Vice President	 	 
	 

	 	 	 	and Treasurer	 	 

6

 

REVERSE OF NOTE

     The following are the rights, limitations of rights, obligations, duties and immunities of
AT&T and the Holders of the Notes and of the terms upon which the Notes are, and are to be,
executed and delivered. The Notes will be issued in fully registered form only and in
denominations of $1,000 and integral multiples of $1,000. The Notes shall be executed on behalf of
AT&T with a manual signature.

Definitions.

“Affiliate” means any person directly or indirectly controlling or controlled by, or under direct
or indirect common control with AT&T.

“AT&T” means the party named as such in the Note until a successor replaces it pursuant to the
applicable provisions hereof and thereafter means the successor.

“Calculation Agent” means, initially, AT&T.

“Default” means any event which is, or after notice or passage of time would be, an Event of
Default.

“Depository” means, with respect to the Global Notes, the person designated as Depository by AT&T.

“Global Note” means a note evidencing all or part of the Notes, issued to the Depository for such
Notes or its nominee, and registered in the name of such Depository or nominee.

“Holder” means the person in whose name a Note is registered on the Registrar’s books.

“Officer” means the Chairman of the Board of Directors, any Vice Chairman of the Board of
Directors, the President, any Vice-President, the Treasurer, any Assistant Treasurer or the
Secretary of AT&T.

“Order” means an order in the name of AT&T signed by two Officers or by any Officer and an
Assistant Treasurer or an Assistant Secretary of AT&T.

“Principal” means the principal of the Note plus, when appropriate, the premium, if any, on the
Note.

“Reference Agent” means, initially, AT&T.

“SEC” means the Securities and Exchange Commission.

“United States” means the United States of America (including the States and the District of
Columbia), its territories, its possessions and all other areas subject to its jurisdiction.

7

 

Paying Agent and Registrar.

     AT&T shall maintain in the Borough of Manhattan, The City of New York, State of New York, an
office or agency where Notes may be presented for registration of transfer or for exchange
(“Registrar”) and an office or agency where Notes may be presented for payment or for exchange
(“Paying Agent”). The Registrar shall keep a register with respect to the Notes and to their
transfer and exchange. AT&T may appoint one or more co-Registrars and one or more additional
Paying Agents and AT&T may terminate the appointment of any co-Registrar or Paying Agent at any
time. The term “Registrar” includes any co-Registrar. The term “Paying Agent” includes any
additional Paying Agent. AT&T will initially act as the Registrar and Paying Agent.

Paying Agent to Hold Money in Trust.

     AT&T will require each Paying Agent to agree in writing that it will hold all sums held by it
for the payment of principal of and interest on the Notes in trust for the benefit of the persons
entitled thereto until such sums are paid to such persons. AT&T, acting as Paying Agent, shall
segregate the money held by it for the payment of principal of and interest on the Notes and hold
such money as a separate trust fund.

Lists of Holders; Ownership of Notes.

     AT&T shall preserve in as current a form as is reasonably practicable the most recent list
received by or furnished to it of the names and addresses of Holders of Notes. Ownership of Notes
shall be proved by the register kept by the Registrar. Notwithstanding the foregoing, nothing
herein shall prevent AT&T, or any agent of AT&T from giving effect to any written certification,
proxy or other authorization furnished by a Depository or impair, as between a Depository and
holders of beneficial interests in any Global Note, the operation of customary practices governing
the exercise of the rights of the Depository as Holder of such Global Note. AT&T will not have any
responsibility or liability for any aspect of the records relating to or payments made on account
of beneficial ownership interests in a Global Note or for maintaining, supervising or reviewing any
records relating to such beneficial ownership interests.

Registration of Transfer and Exchange.

     When Notes are presented to the Registrar with a request to register their transfer or to
exchange them for an equal principal amount of Notes of like tenor of other authorized
denominations, the Registrar shall register the transfer or make the exchange. AT&T will not make
any charge for any registration of transfer or exchange.

     Notwithstanding the foregoing, the Global Notes shall be exchangeable pursuant to this section
titled “Registration of Transfer and Exchange” for Notes registered in the names of Persons other
than the Depository for such Global Notes or its nominee only if (i) such Depository notifies AT&T
that it is unwilling or unable to continue as Depository for such Global Notes or if at any time
such Depository ceases to be a clearing agency registered under

8

 

the Securities Exchange Act of 1934, as amended, (ii) AT&T executes and delivers an Order that
such Global Notes shall be so exchangeable or (iii) there shall have occurred and be continuing an
Event of Default with respect to the Notes. Any of the Global Notes that are exchangeable pursuant
to the preceding sentence shall be exchangeable for Notes registered in such names as such
Depository shall direct.

     Notwithstanding any other provision herein, Global Notes may not be transferred except as a
whole by the Depository with respect to such Global Notes to a nominee of such Depository or by a
nominee of such Depository to such Depository or another nominee of such Depository.

     If at any time the Depository for the Notes notifies AT&T that it is unwilling or unable to
continue as Depository for the Notes or if at any time the Depository for the Notes shall no longer
be eligible to continue in such capacity, AT&T shall appoint a successor Depository with respect to
the Notes. If a successor Depository for the Notes is not appointed by AT&T within 90 days after
AT&T receives such notice or becomes aware of such ineligibility, AT&T’s election of the Depository
shall no longer be effective with respect to the Notes and AT&T will execute and deliver the Notes
in definitive form in an aggregate principal amount equal to the principal amount of the Global
Notes representing such Notes in exchange for such Global Notes.

     AT&T may at any time and in its sole discretion determine that the Notes issued in the form of
one or more Global Notes shall no longer be represented by such Global Notes. In such event AT&T
will execute and deliver Notes in definitive form and in an aggregate principal amount equal to the
principal amount of the Notes in exchange for such Notes.

     If (a) there shall have occurred and be continuing an Event of Default (as defined in the
section titled “Event of Default”) or an event which, with the giving of notice or lapse of time,
or both, would constitute an Event of Default with respect to any Global Note, or (b) if specified
by AT&T, the Depository may surrender any Global Note in exchange in whole or in part for Notes in
definitive form. Thereupon, AT&T shall execute and deliver, without service closing charge: (i)
to each person specified by such Depository a new Note, of any authorized denomination as requested
by such person in aggregate principal amount equal to and in exchange for such person’s beneficial
interest in any Global Note; and (ii) to such Depository a new Global Note in a denomination equal
to the difference, if any, between the principal amount of the surrendered Global Note and the
aggregate principal amount of Notes delivered to Holders thereof.

     In any exchange provided for in any of the preceding three paragraphs, AT&T will execute and
deliver Notes in definitive registered form in authorized denominations.

     Upon the exchange of a Global Note for Notes in definitive form, such Global Note shall be
canceled by AT&T. Notes issued in exchange for a Global Note pursuant to this section titled
“Registration of Transfer and Exchange” shall be registered in such names and in such authorized
denominations as the Depository for such Global Note, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct AT&T.

9

 

Replacement Notes.

     If a mutilated Note is surrendered to AT&T, AT&T shall issue and deliver in exchange therefor
a replacement Note.

     If the Holder of a Note claims that the Note has been lost, destroyed or wrongfully taken,
AT&T shall issue a replacement Note. AT&T may charge the party requesting a replacement Note for
its expenses in replacing a Note; provided, however, that AT&T may require any such Holder to
provide to AT&T security or indemnity sufficient in the judgment of AT&T to protect AT&T from any
loss which it may suffer if a Note is replaced.

     Every replacement Note is an additional obligation of AT&T.

     The provisions of this section titled “Replacement of Notes” are exclusive and shall preclude
(to the extent lawful) all other remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes.

Outstanding Notes.

     Notes outstanding at any time are all Notes executed and delivered by AT&T except for those
cancelled by it, those delivered to it for cancellation, and those described in this section titled
“Outstanding Notes” as not outstanding.

     If a Note is replaced pursuant to the section titled “Replacement Notes,” it ceases to be
outstanding until AT&T receives proof satisfactory to it that the replaced Note is held by a bona
fide purchaser.

     A Note does not cease to be outstanding because AT&T holds the Note.

Treasury Notes.

     In determining whether the Holders of the requisite principal amount of Notes have concurred
in any direction, waiver or consent, Notes owned by AT&T or an Affiliate shall be disregarded.
Notes owned by AT&T or which have been pledged in good faith may be considered by AT&T if the
pledgee establishes to the satisfaction of AT&T the pledgee’s right to so act with respect to such
Notes and that the pledgee is not AT&T or an Affiliate.

Temporary Notes.

     Until definitive Notes are ready for delivery, AT&T may prepare and execute temporary Notes.
Temporary Notes shall be substantially in the form of definitive Notes but may have variations that
AT&T considers appropriate. Every temporary Note shall be executed by AT&T and registered, upon
the same conditions, and with like effect, as a definitive Note. Without unreasonable delay, AT&T
shall prepare definitive Notes in exchange for such temporary Notes.

10

 

Cancellation.

     AT&T at any time may cancel Notes so long as the Notes are paid in full. AT&T shall cancel
all Notes surrendered for registration of transfer, exchange, payment or cancellation and may
dispose of cancelled Notes. AT&T may not issue new Notes to replace Notes that it has paid or
cancelled.

Defaulted Interest.

     AT&T may pay defaulted interest, plus any interest payable on the defaulted interest, to the
Holders on a subsequent special record date. AT&T shall fix the record date and the payment date.
At least 15 days before the record date AT&T shall mail to such Holders a notice that states the
record date, the payment date and the amount of interest to be paid.

Reports by AT&T.

     AT&T agrees:

(a) to transmit by mail to all Holders, within 15 days after AT&T is required to file the
same with the SEC, copies of the annual reports and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the SEC may from time to time
by rules and regulations prescribe) which AT&T may be required to file with the SEC pursuant
to section 13 or section 15(d) of the Securities Exchange Act of 1934, as amended; or, if
AT&T is not required to file information, documents or reports pursuant to either of such
sections, then to transmit to each Holder and file with the SEC, in accordance with rules
and regulations prescribed from time to time by the SEC, such of the supplementary and
periodic information, documents and reports which may be required pursuant to section 13 of
the Securities Exchange Act of 1934, as amended, in respect of a security listed and
registered on a national securities exchange as may be prescribed from time to time in such
rules and regulations;

(b) to transmit by mail to all Holders and file with the SEC, in accordance with the rules
and regulations prescribed from time to time by the SEC, such additional information,
documents, and reports with respect to compliance by AT&T with the conditions and covenants
provided for herein as may be required from time to time by such rules and regulations; and

(c) to transmit by mail to all Holders, within 45 days after the filing thereof with the
SEC, such summaries of any information, documents and reports required to be filed by AT&T
pursuant to subsections (a) and (b) above, as may be required by rules and regulations
prescribed from time to time by the SEC.

     Notwithstanding the foregoing, any reports or information required to be transmitted by mail
to Holders pursuant to this Section shall be deemed to have been transmitted, and the

11

 

obligations
of AT&T under this Section shall be deemed satisfied, on the date on which such reports or
information are posted via EDGAR on the SEC’s website.

When AT&T May Merge, etc.

     AT&T may not consolidate with, or merge into, or be merged into, or transfer or lease its
properties and assets substantially as an entirety to, any person, unless the person is a
corporation organized under the laws of the United States, any State thereof or the District of
Columbia, the person assumes all the obligations of AT&T under the Notes, shall have provided for
conversion or exchange rights in accordance with the terms of any securities contemplating
conversion or exchange, and, after giving effect thereto, no Default or Event of Default shall have
occurred and be continuing. The surviving, transferee or lessee corporation shall be the successor
to AT&T and AT&T, except in the case of a lease, shall be relieved of all obligations under the
Notes.

Events of Default.

     An “Event of Default” occurs with respect to the Notes if:

(1) AT&T defaults in the payment of interest on the Notes when the same becomes due
and payable and the Default continues for a period of 3 days;

(2) AT&T defaults in the payment of the principal of any of the Notes when the same
becomes due and payable on the Maturity Date or on a Purchase Date or otherwise;

(3) AT&T fails to comply with any of its agreements herein and the Default continues
for the period and after the notice specified below;

(4) AT&T pursuant to or within the meaning of any Bankruptcy Law:

     (i) commences a voluntary case,

     (ii) consents to the entry of an order for relief against it in an
involuntary case,

     (iii) consents to the appointment of a Custodian of it or for all or
substantially all of its property, or

     (iv) makes a general assignment for the benefit of its creditors; or

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(5) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

(i) is for relief against AT&T in an involuntary case,

(ii) appoints a Custodian of AT&T or for all or substantially all of its
property, or

(iii) orders the liquidation of AT&T, and the order or decree remains
unstayed and in effect for 60 days. The term “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the
relief of debtors.

The term “Custodian” means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

     A Default under clause (3) is not an Event of Default until the Holders of at least 25% in
principal amount of all the outstanding Notes notify AT&T of the Default and AT&T does not cure the
Default within 3 days after receipt of the notice. The notice must specify the Default, demand
that it be remedied and state that the notice is a “Notice of Default.”

     Upon receipt by AT&T of any Notice of Default pursuant to this Section with respect to Notes
represented by Global Notes, a record date shall be established for determining Holders of
outstanding Notes entitled to join in such Notice of Default, which record date shall be at the
close of business on the day AT&T receives such Notice of Default. The Holders on such record
date, or their duly designated proxies, and only such persons, shall be entitled to join in such
Notice of Default, whether or not such Holders remain Holders after such record date;
provided, that unless Holders of at least 10% in principal amount of the outstanding Notes,
or their proxies, shall have joined in such Notice of Default prior to the day which is 90 days
after such record date, such Notice of Default shall automatically and without further action by
any Holder be canceled and of no further effect. Nothing in this paragraph shall prevent a Holder,
or a proxy of a Holder, from giving, after expiration of such 90-day period, a new Notice of
Default identical to a Notice of Default which has been canceled pursuant to the proviso to the
preceding sentence, in which event a new record date shall be established pursuant to the
provisions of this Section.

Acceleration.

     If an Event of Default occurs with respect to the Notes and is continuing, Holders of at least
25% in principal amount of all of the outstanding Notes, by notice to AT&T, may declare the
principal of, and any accrued interest on, all Notes to be due and payable. Upon such declaration,
such principal and any accrued interest shall be due and payable immediately. The Holders of a
majority in principal amount of all of the Notes, by notice to AT&T, may rescind such acceleration
and its consequences if the rescission would not conflict with any judgment or decree and if all
existing Events of Default have been cured or waived except nonpayment of principal or interest
that have become due solely because of the acceleration.

13

 

     Upon receipt by AT&T of any declaration of acceleration, or rescission thereof, with respect
to the Notes all or part of which is represented by a Global Note, AT&T shall establish a record
date for determining Holders of outstanding Notes entitled to join in such declaration of
acceleration, or rescission, as the case may be, which record date shall be at the close of
business on the date AT&T receives such declaration of acceleration, or rescission, as the case may
be. The Holders on such record date, or their duly designated proxies, and only such persons,
shall be entitled to join in such declaration of acceleration, or rescission, as the case may be,
whether or not such Holders remain Holders after such record date; provided, that unless
such declaration of acceleration, or rescission, as the case may be, shall have become effective by
virtue of the requisite percentage having been obtained prior to the day which is 90 days after such record
date, such declaration of acceleration, or rescission, as the case may be, shall automatically and
without further action by any Holder be canceled and of no further effect. Nothing in this
paragraph shall prevent a Holder, or a proxy of a Holder, from giving, after expiration of such
90-day period, a new declaration of acceleration, or rescission thereof, as the case may be, that
is identical to a declaration of acceleration, or rescission thereof, which has been canceled
pursuant to the proviso to the preceding sentence, in which even a new record date shall be
established pursuant to the provisions of this Section.

Other Remedies.

     If an Event of Default occurs and is continuing, any Holder may pursue any available remedy to
enforce the performance of any provision of Notes.

     A delay or omission by the any Holder in exercising any right or remedy accruing upon an Event
of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the
Event of Default. To the extent permitted by law no remedy is exclusive of any other remedy and
all available remedies are cumulative.

Waiver of Existing Defaults.

     The Holders of a majority in principal amount of the Notes by notice to AT&T may waive an
existing Default with respect to the Notes and its consequences except a Default in the payment of
principal of or interest on any Note.

     AT&T may, but shall not be obligated to, fix a record date for the purpose of determining the
Persons entitled to waive any past default hereunder. Such record date shall be at the close of
business on the date AT&T receives a notice of waiver from the Holders of a majority in principal
amount of the Notes. If a record date is fixed, the Holders on such record date, or their duly
designated proxies, and only such Persons, shall be entitled to waive any default hereunder,
whether or not such Holders remain Holders after such record date; provided, that unless
such majority in principal amount shall have waived such default prior to the date which is 90 days
after such record date, any such waiver previously given shall automatically and without further
action by any Holder be canceled and of no further effect.

14

 

Control by Majority.

     The Holders of a majority in principal amount of the Notes affected may direct the time,
method and place of conducting any proceeding for any remedy available to the Holders or exercising
any power conferred on them with respect to Notes, provided, that no such action or
direction may be taken that conflicts with applicable law or the Notes or that is unduly
prejudicial to the rights of Holders not included in such majority.

     Upon receipt by AT&T of any such direction with respect to Notes all or part of which is
represented by a Global Note, AT&T shall establish a record date for determining Holders of
outstanding Notes entitled to join in such direction, which record date shall be at the close of
business on the day AT&T receives such direction. The Holders on such record date, or their duly designated proxies, and only such persons, shall be entitled to join in such direction,
whether or not such Holders remain Holders after such record date; provided, that unless
such majority in principal amount shall have been obtained prior to the day which is 90 days after
such record date, such direction shall automatically and without further action by any Holder be
canceled and of no further effect. Nothing in this paragraph shall prevent a Holder, or a proxy of
a Holder, from giving, after expiration of such 90-day period, a new direction identical to a
direction which has been canceled pursuant to the proviso to the preceding sentence, in which event
a new record date shall be established pursuant to the provisions of this Section.

Rights of Holders to Receive Payment.

     Notwithstanding any other provision of the Notes, the right of any Holder to receive payment
of principal of and (subject to the section titled “Defaulted Interest”) interest on the Notes
(whether on the Maturity Date or on a Purchase Date), on or after the respective due dates
expressed in the Notes, the right of any Holder of to have the Notes be converted or exchanged as
provided herein, and the right of any Holder to receive payment of (subject to the section titled
“Defaulted Interest”) interest due as provided herein, or to bring suit for the enforcement of any
such payment on or after such respective dates or any such conversion or exchange right, shall not
be impaired or affected without the consent of such Holder.

Termination of AT&T’s Obligations.

     AT&T reserves the right to terminate all of its obligations under the Notes if AT&T pays, when
due, the principal of and any interest on all the Notes to Holders on the Maturity Date or on a
Purchase Date, as the case may be, and if all other conditions set forth in the Notes are met.
However, AT&T’s obligations in the sections titled “Paying Agent and Registrar,” “Paying Agent to
Hold Money in Trust,” “List of Holders; Ownership of Notes,” and “Registration of Transfer and
Exchange” shall survive until the Notes are no longer outstanding.

Amendments and Waivers Without Consent of Holders.

     AT&T may not amend the terms and conditions of the Notes without the consent of the Holders as
provided herein.

15

 

Amendments and Waivers With Consent of Holders.

     With the written consent of the Holders of a majority in principal amount of the outstanding
Notes, AT&T may amend the Notes or modify the rights of the Holders. The Holders of a majority in
principal amount of the outstanding Notes, by notice to AT&T, may waive compliance by AT&T with any
provision of the Notes except a Default in the payment of the principal of or interest on the
Notes.

     However, without the consent of each Holder, an amendment or waiver may not:

     (a) modify in any way the rights of the Holders to cause AT&T to purchase all or a portion
of its Notes;

     (b) reduce the amount of Notes whose Holders must consent to an amendment or waiver;

     (c) reduce the rate of or change the time for payment of interest on the Notes;

     (d) reduce the principal amount of or change the Maturity Date of the Notes;

     (e) waive a Default in the payment of the principal of or interest on the Notes;

     (f) make the Notes payable in any other currency; or

     (g) make any change in sections titled “Waiver of Existing Defaults,” “Rights of Holders to
Receive Payment,” and the third sentence of subsection (a) of this section titled
“Amendments and Waivers With Consent of Holders.”

     AT&T may, but shall not be obligated to, fix a record date for the purpose of determining the
persons entitled to consent to any modification or waiver. If a record date is fixed, the Holders
on such record date, or their duly designated proxies, and only such Persons, shall be entitled to
consent to such Notes, whether or not such Holders remain Holders after such record date;
provided, that unless such consent shall have become effective by virtue of the requisite
percentage having been obtained prior to the date which is 90 days after such record date, any such
consent previously given shall automatically and without further action by any Holder be canceled
and of no further effect.

Revocation and Effect of Consents.

     Until an amendment or waiver becomes effective, a consent to it by a Holder is a continuing
consent by the Holder and every subsequent Holder of Notes or portion of a Global Note that
evidences the same debt as the consenting Holder’s Notes, even if notation of the consent is not
made on any Notes. However, any such Holder or subsequent Holder may revoke the consent as to its
Notes or portion of a Global Note if AT&T receives the notice of revocation before the date the
amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall
bind every Holder affected by such amendment or waiver.

16

 

Notation on or Exchange of Notes.

     AT&T may place an appropriate notation about an amendment or waiver on any Notes. AT&T, in
exchange for such Notes, may issue new Notes that reflect the amendment or waiver.

Notices.

     Any notice or communication to AT&T, other than with respect to a Holder’s election to require
AT&T to purchase all or a portion of its Notes (described below), is duly given if in writing and
delivered in person or mailed by first-class mail to:

AT&T Inc.

175 E. Houston Street

San Antonio, Texas 78205-4105

Attention: Assistant Treasurer-Corporate Finance

     AT&T by notice to each Holder may designate additional or different addresses for subsequent
notices or communications.

     Any notice or communication to Holders shall be mailed by first-class mail to the addresses
for Holders shown on the register kept by the Registrar. Failure to so mail a notice or
communication or any defect in such notice or communication shall not affect its sufficiency with
respect to other Holders entitled to receive notice.

     If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

     All notices or other communications given to AT&T shall be effective when actually received by
AT&T.

     A Holder of a Note electing to require AT&T to purchase all or a portion of its Notes must
provide notice via phone, facsimile, e-mail or other electronic communication or courier to AT&T at
least 30 calendar days prior to a Purchase Date; provided that if a Holder provides notice of the
foregoing via phone, such Holder shall also provide written notice the following day.

Rules by AT&T.

     AT&T may make reasonable rules and set reasonable requirements for its functions as Paying
Agent and Registrar; provided, however, that in no event shall such rules or
requirements impair the rights, obligations, duties and immunities of the Holders provided for
herein.

17

 

Governing Law.

     The laws of the State of New York shall govern the Notes without regard to principles of
conflicts of laws.

No Adverse Interpretation of Other Agreements.

     The Notes may not be used to interpret another note, loan or debt agreement of AT&T. No such
indenture, loan or debt agreement may be used to interpret the Notes.

No Recourse Against Others.

     No director, officer, employee or stockholder, as such, of AT&T shall have any liability for
any obligation of AT&T under the Notes or for any claim based on, in respect of or by reason of
such obligations or their creation. Each Holder by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for the issue of the Notes.

Acts of Holders.

     Any request, demand, authorization, direction, notice, consent, waiver or other action
provided for in the Notes to be given or taken by Holders may be embodied in and evidenced by one
or more instruments of substantially similar tenor signed by such Holders in person or by an agent
duly appointed in writing; and, except as herein otherwise expressly provided, such action shall
become effective when such instrument or instruments are delivered to AT&T. Proof of execution of
any such instrument or of a writing appointing any such agent shall be sufficient for any purpose
of the Notes and conclusive in favor of AT&T, if made in the manner provided in this section titled
“Acts of Holders.”

     The ownership of Notes shall be proved by the Registrar.

     Any request, demand, authorization, direction, notice, consent, waiver or other Act of the
Holder shall bind every future Holder of the same Note and the holder of every Note issued upon the
registration of transfer thereof or in exchange therefor or in lieu thereof in respect of anything
done, omitted or suffered to be done by AT&T in reliance thereon, whether or not notation of such
action is made upon such Note.

18

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