Document:

Table of Contents
BANK STREET
TELECOM FUNDING CORP.

FORM OF
FOUNDING WARRANT
PURCHASE
AGREEMENT

THIS FOUNDING WARRANT PURCHASE AGREEMENT (the
‘‘Agreement’’) is made as of April
 , 2006 between Bank Street Telecom Funding Corp., a Delaware
corporation (the ‘‘Company’’), on the one
hand, and BSTFC Management LLC, R.C. Mark Baker, Sir John Baring, Bt.,
Royce J. Holland, Joel D. Gross and Brett Cohen on the other hand
(collectively, the ‘‘Purchasers’’ or
individually, a ‘‘Purchaser’’). Except as
otherwise indicated herein, capitalized terms used herein are defined
in Section 10 hereof.

WHEREAS, the Purchasers are the
existing stockholders of the Company immediately prior to the Offering
(defined below); and

WHEREAS, the Company filed a registration
statement on Form S-1 with the Securities and Exchange Commission (the
"Commission") on August 5, 2005 (File No.
333-127238), as amended (the "Registration
Statement");

WHEREAS, in furtherance of the
Company's plan to obtain funding through an initial public
offering (the "Offering") of its units (the
"Units"), each Unit consisting of one share
of common stock (the "Unit Common Stock") and
one warrant to purchase one share of common stock (the
"Unit Warrants" or a "Unit
Warrant"), the Company desires to sell in a private
placement to the Purchasers an aggregate of 1,000,000 warrants (the
"Founding Warrants") on the terms and
conditions described herein; and

WHEREAS, each Purchaser desires
to purchase on the terms and conditions described herein the number of
Founding Warrants set forth opposite his name on Exhibit A
hereto.

NOW THEREFORE, in consideration of the mutual promises
contained in this Agreement and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the
parties to this Agreement hereby agree as
follows:

Section 1.    Authorization, Purchase and
Sale; Terms of the Founding
Warrants.

A. Authorization of the Founding
Warrants.    The Company has authorized the issuance and sale to
the Purchasers of an aggregate of 1,000,000 Founding Warrants. Each
Founding Warrant shall upon exercise and payment of the exercise price
specified therein entitle the holder to purchase one share of the
Company’s common stock, par value $0.0001 per share (the
‘‘Common
Stock’’).

B. Purchase and Sale of the
Founding Warrants.    The Company shall sell to the Purchasers,
and subject to the terms and conditions set forth herein, the
Purchasers shall severally purchase from the Company, contemporaneously
with the closing of the Offering, an aggregate of 1,000,000 Founding
Warrants. Each Purchaser shall purchase that number of the Founding
Warrants as is set forth opposite such Purchaser’s name in the
table contained in Exhibit A hereto. At the Closing (as defined below),
the Purchase Price shall be paid in immediately available funds through
wire transfers to the trust account (the "Trust
Account") to be established pursuant to that certain
Investment Management Trust Agreement by and between the Company and
Continental Stock Transfer & Trust Company
("Continental"). Amounts so received in the
Trust Account shall be credited against the respective purchase
obligations of the Purchasers as described on Exhibit A
hereto.

C. Terms of the Founding Warrants.    The
Founding Warrants shall carry rights and terms identical to those
possessed by the Unit Warrants described in the Registration Statement,
subject to the following exceptions: the Founding Warrants
(i) will not be transferable or salable by the Purchasers until
such time as the Company has completed a Business Combination,
(ii) will be non-redeemable so long as the Purchasers hold such
warrants following their issuance by the Company to such Purchasers,
and (iii) together with the shares of Common Stock underlying
the Founding Warrants, are and will be entitled to registration rights
under a registration rights agreement (the ‘‘Registration
Rights Agreement’’) to be signed contemporaneously
herewith between the 

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Purchasers and the Company. The transfer
restriction set forth in (i) above shall not apply to
(a) transfers resulting from the death of any of the Purchasers,
(b) transfers by operation of law, (c) any transfer for
estate planning purposes to persons immediately related to the
transferor by blood, marriage or adoption, or (d) any trust
solely for the benefit of such transferor and/or the persons described
in the preceding clause; provided, however, that with
respect to each of the transfers described in clauses (a), (b),
(c) and (d) of this sentence, prior to such transfer,
each permitted transferee or the trustee or legal guardian for each
permitted transferee (hereinafter collectively,
‘‘Permitted Transferees’’ or a
‘‘Permitted Transferee’’) agrees in writing
to be bound by the terms of this Agreement. Should any of the
Purchasers transfer or sell Founding Warrants to persons other than
Permitted Transferees after the Company has completed a Business
Combination, then such Founding Warrants shall on the date of such
transfer immediately become redeemable under the same terms as the Unit
Warrants. Except as specifically provided in this Agreement, the terms
of the Founding Warrants shall in all other respects be as set forth in
the Warrant Agreement relating to the Unit Warrants by and between the
Company and Continental. In the event of any conflict between this
Agreement and the Warrant Agreement, the terms and provisions of which
are incorporated herein by reference, this Agreement shall
control.

Section 2.    The Closing.    The
closing of the purchase and sale of the Founding Warrants (the
"Closing") will take place at such time and
place as the parties may agree (the "Closing
Date"), but in no event later than the date on which the
SEC declares the Registration Statement effective (the
"Effective Date"). At the Closing, the
Purchase Price shall be paid in immediately available funds through
wire transfers to the Trust Account. The certificates for the Founding
Warrants shall be delivered to the Purchasers promptly after the
closing of the IPO.

Section 3.    Representations and
Warranties of the Company.    As a material inducement to the
Purchasers to enter into this Agreement and purchase the Founding
Warrants, the Company hereby represents and warrants
that:

A. Organization and Corporate Power.    The
Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware and is qualified to do
business in every jurisdiction in which the failure to so qualify would
reasonably be expected to have a material adverse effect on the
financial condition, operating results or assets of the Company. The
Company possesses all requisite corporate power and authority necessary
to carry out the transactions contemplated by this
Agreement.

B. Authorization; No
Breach.

(i) The execution, delivery
and performance of this Agreement to which the Company is a party will
have been duly authorized by the Company as of the Closing upon the
approval hereof by the Company and its Board of Directors. This
Agreement constitutes a valid and binding obligation of the Company,
enforceable in accordance with its terms upon its
execution.

(ii) The execution and
delivery by the Company of this Agreement, the sale and issuance of the
Founding Warrants hereunder, the issuance of the Common Stock upon
exercise of the Founding Warrants (except, with respect thereto, any
filings required under Federal or state securities laws or issuance of
one or more legal opinions in form and content reasonably satisfactory
to the Company pertaining to the availability of one or more exemptions
with respect to the issuance of the Founding Warrants under applicable
securities laws) and the fulfillment of and compliance with the
respective terms hereof and thereof by the Company, do not and will not
as of the Closing (i) conflict with or result in a breach of the
terms, conditions or provisions of, (ii) constitute a default
under, (iii) result in the creation of any lien, security
interest, charge or encumbrance upon the Company’s capital stock
or assets pursuant to, (iii) result in a violation of, or
(iv) require any authorization, consent, approval, exemption or
other action by or notice or declaration to, or filing with, any court
or administrative or governmental body or agency pursuant to, the
Certificate of Incorporation of the Company or the bylaws of the
Company, or any material law, statute, rule or regulation to which the
Company is subject, or any agreement, order, judgment or decree to
which the Company is subject, except for any filings required after the
date hereof under Federal or state securities laws.

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C. Title to
Securities.    Upon issuance in accordance with, and payment
pursuant to, the terms hereof, the Founding Warrants to be purchased
hereunder and, upon exercise of the Founding Warrants, payment of the
exercise price set forth therein and conformance with the other
provisions relating to the exercise thereto, the Common Stock issuable
upon exercise of such Founding Warrants will be duly and validly
issued, fully paid, nonassessable, and the Purchasers will have or
receive good title to such securities, free and clear of all liens,
claims and encumbrances of any kind, other than (a) transfer
restrictions hereunder, (b) transfer restrictions under federal
and state securities laws, and (c) liens, claims or encumbrances
imposed due to the actions of the
Purchasers.

D. Governmental Consents.    No
permit, consent, approval or authorization of, or declaration to or
filing with, any governmental authority is required in connection with
the execution, delivery and performance by the Company of this
Agreement, or the consummation by the Company of any other transactions
contemplated hereby.

E. Disclosure.    (a) The
Company has provided each Purchaser with a copy of the Registration
Statement, or informed each Purchaser of the filing thereof and
instructed or requested the Purchasers to review the Registration
Statement on the Commission’s website. (b) To the best of
the Company’s knowledge as of the date hereof, the Registration
Statement, taken as a whole, does not contain any untrue statement of a
material fact or omits to state a material fact necessary to make the
statements herein or therein not misleading in light of the
circumstances in which such statements were
made.

Section 4.    Representations, Warranties and
Covenants of Purchasers.    As a material inducement to the
Company to enter into this Agreement and issue and sell the Founding
Warrants to the Purchasers, the Purchasers hereby severally represent,
warrant and covenant to the Company (which representations, warranties
and covenants shall survive the Closing)
that:

A. Capacity and State Law Compliance. Each of
the Purchasers (except for BSTFC Management LLC) and the members of
BSTFC Management LLC is an individual over the age of 21 years with the
legal capacity to execute and perform the obligations imposed on each
Purchaser hereunder. Each Purchaser has engaged in the transactions
contemplated by this Agreement within a state in which the offer and
sale of the Founding Warrants is permitted under applicable securities
laws. The Purchaser understands and acknowledges that the purchase of
Common Stock on exercise of the Founding Warrants may require the
registration of such Common Stock under Federal and/or state securities
laws or the availability of an exemption from such registration
requirements.

B. Authorization; No
Breach.

(i) This Agreement
constitutes a valid and binding obligation of each Purchaser,
enforceable in accordance with its
terms.

(ii) The execution and delivery
by Purchasers of this Agreement and the fulfillment of and compliance
with the respective terms hereof by Purchasers do not and shall not as
of the Closing conflict with or result in a breach of the terms,
conditions or provisions of any other agreement, instrument, order,
judgment or decree to which any of the Purchasers is
subject.

C. Investment
Representations.

(i) Each Purchaser
is acquiring the Founding Warrants and, upon exercise thereof, the
Common Stock issuable upon such exercise (collectively, the
‘‘Securities’’) for such Purchaser’s
own account, for investment only and not with a view towards, or for
resale in connection with, any public sale or distribution
thereof.

(ii) Each Purchaser understands
that the Securities are being offered and sold to such Purchaser in
reliance on specific exemptions from the registration requirements of
United States federal and state securities laws and that the Company is
relying in part upon the truth and accuracy of, and such
Purchaser’s compliance with, the representations, warranties and
agreements of such Purchaser set forth herein in order to determine the
availability of such exemptions and the eligibility of such Purchaser
to acquire such securities.

(iii) Each
Purchaser initiated discussions with the Company relating to the
purchase and sale of the Securities contemplated by this Agreement on
an unsolicited basis prior to the date of 

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this Agreement. The Purchasers did not
initiate such discussions, nor did Purchasers decide to enter into this
Agreement, as a result of any general solicitation or general
advertising within the meaning of Rule 502(c) under the Securities Act
of 1933, as amended (the ‘‘Securities
Act’’), including the filing of the Registration
Statement.

(iv) Each Purchaser has been
furnished with all materials relating to the business, finances and
operations of the Company and materials relating to the offer and sale
of the Securities which have been requested by such Purchaser. Each
Purchaser has been afforded the opportunity to ask questions regarding
the executive officers and directors of the Company. Each Purchaser
understands that such Purchaser’s investment in the Securities
involves a high degree of risk. Each Purchaser has sought such
accounting, legal and tax advice as such Purchaser has considered
necessary to make an informed investment decision with respect to such
Purchaser’s acquisition of the Securities. Each Purchaser has
received and reviewed a copy of the Registration Statement, including
without limitation, the language therein under the caption
‘‘Risk
Factors.’’

(v) Each
Purchaser understands that no United States federal or state agency or
any other government or governmental agency has passed on or made any
recommendation or endorsement of the Securities or the fairness or
suitability of the investment in the Securities nor have such
authorities passed upon or endorsed the merits of the offering of the
Securities.

(vi) Each Purchaser
understands that: (a) the Securities have not been registered
under the Securities Act or any state securities laws, and may not be
offered for sale, sold, assigned or transferred unless
(A) subsequently registered thereunder or (B) sold in
reliance on an exemption therefrom; and (b) except as
specifically set forth in the Registration Rights Agreement, neither
the Company nor any other person is under any obligation to register
such securities under the Securities Act or any state securities laws
or to comply with the terms and conditions of any exemption thereunder.
In this regard, each Purchaser represents that such Purchaser is
familiar with Rule 144 adopted pursuant to the Securities Act, and
understands the resale limitations imposed thereby and by the
Securities Act. Each Purchaser is able to bear the economic risk of its
investment in the Securities for an indefinite period of
time.

(vii) Each Purchaser acknowledges
that such Purchaser is able to fend for himself, has knowledge and
experience in financial and business matters, knows of the high degree
of risk associated with investments generally and particularly
investments in the securities of companies in the development stage
such as the Company, is capable of evaluating the merits and risks of
an investment in the Securities and is able to bear the economic risk
of an investment in the Securities in the amount contemplated
hereunder. Each Purchaser has adequate means of providing for such
Purchaser’s current financial needs and contingencies and will
have no current or anticipated future needs for liquidity which would
be jeopardized by the investment in the Securities. Each Purchaser can
afford a complete loss of such Purchaser’s investment in the
Securities.

(viii) Without in any way
limiting the representations set forth above, each Purchaser agrees not
to make any disposition of all or any portion of the Securities unless
and until

(1) There is then in effect a
registration statement under the Securities Act covering such proposed
disposition and such disposition is made in accordance with such
registration statement; or

(2) (i) Such Purchaser
shall have notified the Company of the proposed disposition and shall
have furnished the Company with a detailed statement of the
circumstances surrounding the proposed disposition, and (ii) if
reasonably requested by the Company, such Purchaser shall have
furnished the Company with an opinion of counsel, reasonably
satisfactory to the Company, that such disposition will not require
registration of such Securities under the Securities Act.

Notwithstanding the foregoing, each Purchaser also
understands and acknowledges that the transfer or exercise of the
Founding Warrants is subject to the specific conditions to such
transfer or exercise as outlined in this Agreement, as to which each
Purchaser specifically assents by such Purchaser’s execution
hereof.

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D. No Group.    The
participation of the Purchasers purchasing the Founding Warrants under
this Agreement shall not be construed so as to make any of the
Purchasers part of, or a participant in, a
‘‘group’’ as defined in Rule 13d-5 of the
Exchange Act with respect to any securities of the
Company.

E. Rescission Right Waiver and
Indemnification.

(i) Each Purchaser
understands and acknowledges that an exemption from the registration
requirements of the Securities Act requires that there be no general
solicitation of purchasers of the Founding Warrants. In this regard, if
the Offering of the Units were deemed to be a general solicitation with
respect to the Founding Warrants, the offer and sale of such Founding
Warrants may not be exempt from registration and, if not, the
Purchasers may have a right to rescind their purchases of the Founding
Warrants. In order to facilitate the completion of the Offering and in
order to protect the Company, its stockholders and the Trust Account
from claims that may adversely affect the Company or the interests of
its stockholders, each Purchaser hereby agrees to waive, to the maximum
extent permitted by applicable law, any claims, right to sue or right
in law or arbitration, as the case may be, to seek rescission of such
Purchaser’s purchase of the Founding Warrants. Each Purchaser
acknowledges and agrees that this waiver is being made in order to
induce the Company to sell the Founding Warrants to the Purchasers.
Each Purchaser agrees that the foregoing waiver shall apply to (1) any
and all known or unknown actions, causes of action, suits, claims, or
proceedings (collectively, ‘‘Claims’’) and
(2) related losses, costs, penalties, fees, liabilities and damages,
whether compensatory, consequential or exemplary, and expenses in
connection therewith (collectively, ‘‘Losses and
Expenses’’) (including reasonable attorneys’ and
expert witness fees and disbursements and all other expenses reasonably
incurred in investigating, preparing or defending against any Claims,
whether pending or threatened), in each case, arising from or relating
to or incurred in connection with any present or future actual or
asserted right to rescind the purchase of the Founding Warrants
hereunder or the purchase of the Founding Warrants and the transactions
contemplated hereby.

(ii) Each Purchaser
agrees not to seek recourse against the Trust Account for any reason
whatsoever in connection with such Purchaser’s purchase of the
Founding Warrants or any Claim that may arise therefrom now or in the
future.

(iii)    Each Purchaser hereby waives
any and all rights to assert any present or future claims, including
any right of rescission, against Citigroup Global Securities Inc. or
its affiliates (collectively "Citigroup")
with respect to such Purchaser's purchase of the Founding
Warrants, and each Purchaser agrees to indemnify and hold Citigroup and
the other underwriters in the Offering harmless from all losses,
damages or expenses arising from claims or proceedings brought against
Citigroup or such other underwriters by such Purchaser or its
transferees, heirs, assigns or any subsequent holders of the Founding
Warrants with respect to such Purchaser's purchase of the
Founding Warrants.

(iv) The Purchasers
acknowledge and agree that the stockholders of the Company, including
those who purchase the Units in the Offering, are and shall be
third-party beneficiaries of the foregoing provisions of
Section 4(E) of this
Agreement.

(v) Each Purchaser agrees
that to the extent any waiver under this Section 4(E) is
ineffective as a matter of law, each Purchaser has offered such waiver
for the benefit of the Company as an equitable right that shall survive
any statutory disqualification or bar that applies to a legal right.
Each Purchaser acknowledges the receipt and sufficiency of
consideration received from the Company hereunder in this
regard.

Section 5.    Conditions of the
Purchasers’ Obligations at the Closing.    The obligation
of the Purchasers to purchase and pay for the Founding Warrants is
subject to the fulfillment, at or before the Closing, of each of the
following conditions:

A. Representations and
Warranties.    The representations and warranties of the Company
contained in Section 3, except for those stated to be made as of
the date hereof, shall be true and 

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correct in all material respects at and as of
the Closing as though then made, except to the extent of changes caused
by the transactions expressly contemplated herein or in the prospectus
contained in the Registration
Statement.

B. Performance.    The Company shall
have performed and complied with all agreements, obligations and
conditions contained in this Agreement that are required to be
performed or complied with by it on or before the
Closing.

Section 6.    Conditions of the
Company’s Obligations at the Closing.    The obligations
of the Company to the Purchasers under this Agreement are subject to
the fulfillment, at or before the Closing, of each of the following
conditions:

A. Representations and
Warranties.    The representations and warranties of Purchasers
contained in Section 4 shall be true at and as of the Closing as
though then made.

B. Performance.    The
Purchasers shall have performed and complied with all agreements,
obligations and conditions contained in this Agreement that are
required to be performed or complied with by them on or before the
Closing.

C. Corporate Consents.    The
Company’s Board of Directors shall have duly authorized the
execution, delivery and performance of this Agreement and the issuance
and sale of the Founding Warrants hereunder.

Section 7. Termination.    This Agreement may or
will be terminated at any time prior to the consummation of the Closing
under the following described
circumstances:

(i) automatically upon
the mutual written consent of the Company and the
Purchasers;

(ii) by either of the
Company or the Purchasers, in each case by delivery of written notice
thereof, if the Offering shall not have been consummated prior to the
one-month anniversary of the date of this Agreement;
or

(iii) automatically if the Offering
is not consummated within the time periods described in the
Underwriting Agreement after the Registration Statement is declared
effective.

Section 8.    Survival of Representations
and Warranties.    All of the representations and warranties
contained herein shall survive the Closing for a period of six
(6) months except as otherwise specifically provided
herein.

Section 9.    Definitions.    For the
purposes of this Agreement, the following terms have the meanings set
forth:

‘‘Business Combination’’ means
the acquisition by the Company, whether by merger, capital stock
exchange, asset acquisition, or stock purchase or other business
combination transaction, of one or more operating businesses within the
communications industry that is its initial business combination and
which meets the size, timing and other criteria outlined in the
Registration Statement.

‘‘Common
Stock’’ means the Company’s common stock, par
value $0.0001 per share.

‘‘Exchange
Act’’ means the Securities Exchange Act of 1934, as
amended.

‘‘Person’’ means any
individual, partnership, corporation, limited liability company,
association, joint stock company, trust, joint venture, unincorporated
organization or governmental entity or any department, agency or
political subdivision thereof.

‘‘Securities
Act’’ means the Securities Act of 1933, as
amended.

‘‘Securities and Exchange
Commission’’ or
‘‘Commission’’ means the United States
Securities and Exchange Commission.

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Section 10.    Miscellaneous.

A. Legends.

(i) The
certificates evidencing the Founding Warrants will include the legend
set forth below, which each Purchaser has read and
understands:

THE SECURITIES REPRESENTED HEREBY HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
STATE SECURITIES LAW, AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR
OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, AND ANY APPLICABLE STATE SECURITIES LAWS OR AN
EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. THESE SECURITIES ARE
ALSO SUBJECT TO INVESTMENT REPRESENTATIONS AND RESTRICTIONS ON TRANSFER
OR SALE PURSUANT TO A PURCHASE AGREEMENT DATED
                 , 2006 WHICH RESTRICTS THE TRANSFER
THEREOF UNTIL
                                                        ,
A COPY OF WHICH CAN BE OBTAINED FROM THE COMPANY AT ITS EXECUTIVE
OFFICES.

(ii) By accepting the
certificates bearing the aforesaid legend, each Purchaser agrees, prior
to any permitted transfer of the Securities represented by the
certificates and subject to the restrictions contained herein, to give
written notice to the Company expressing such Purchaser’s desire
to effect such transfer and describing briefly the proposed transfer.
Upon receiving such notice, the Company shall present copies thereof to
its counsel and the following provisions shall
apply:

(1) subject to the transfer restrictions
contained elsewhere in this Agreement, if, in the reasonable opinion of
counsel to the Company, the proposed transfer of such Securities may be
effected without registration under the Securities Act and applicable
state securities acts, the Company shall promptly thereafter notify the
transferring Purchaser, whereupon the transferring Purchaser may
transfer such Securities, all in accordance with the terms of the
notice delivered by the transferring Purchaser and upon such further
terms and conditions as shall be required to ensure compliance with the
Securities Act and the applicable state securities acts, and, upon
surrender of the certificate evidencing such Securities, in exchange
therefor, a new certificate not bearing a legend of the character set
forth above if such counsel reasonably believes that such legend is no
longer required under the Securities Act and the applicable state
securities acts; and

(2) subject to the transfer
restrictions contained elsewhere in this Agreement, if, in the
reasonable opinion of counsel to the Company, the proposed transfer of
such Securities may not be effected without registration under the
Securities Act or the applicable state securities acts, a copy of such
opinion shall be promptly delivered to the transferring Purchaser, and
such proposed transfer shall not be made unless such registration is
then in effect.

(3) The Company may, from time to
time, make stop transfer notations in its records and deliver stop
transfer instructions to its transfer agent to the extent its counsel
considers it necessary to ensure compliance with the Securities Act and
the applicable state securities acts.

B. Successors and
Assigns.    Except as otherwise expressly provided herein, all
covenants and agreements contained in this Agreement by or on behalf of
any of the parties hereto shall bind and inure to the benefit of the
respective successors and assigns of the parties hereto whether so
expressed or not. Notwithstanding the foregoing or anything to the
contrary herein, the parties may not assign this
Agreement.

C. Severability.    Whenever possible,
each provision of this Agreement shall be interpreted in such manner as
to be effective and valid under applicable law, but if any provision of
this Agreement is held to be prohibited by or invalid under applicable
law, such provision shall be ineffective only to the extent of such
prohibition or invalidity, without invalidating the remainder of this
Agreement.

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D. Counterparts.    This
Agreement may be executed simultaneously in two or more counterparts,
any one of which need not contain the signatures of more than one
party, but all such counterparts taken together shall constitute one
and the same Agreement.

E. Descriptive Headings;
Interpretation.    The descriptive headings of this Agreement are
inserted for convenience only and do not constitute a substantive part
of this Agreement. The use of the word
‘‘including’’ in this Agreement shall be by
way of example rather than by limitation.

F. Governing
Law.    The laws of the State of New York shall govern all issues
and questions concerning the construction, validity, enforcement and
interpretation of this Agreement, without giving effect to any choice
of law or conflict of law rules or provisions that would cause the
application of the laws of any jurisdiction other than the State of New
York.

G. Notices.    All notices, demands or
other communications to be given or delivered under or by reason of the
provisions of this Agreement shall be in writing. Any such notice or
communication shall be delivered by hand or by recognized national
overnight courier service or sent by certified or registered mail,
return receipt requested, postage prepaid, addressed as above (or to
such other address as such party may designate in a notice duly
delivered as described above). Notices shall be effective immediately
upon personal delivery, one (1) business day after
deposit with an overnight courier service or three (3) business
days after the date of mailing
thereof.

							
	If to the Company:		Bank
Street Telecom Funding Corp.
	 		One Landmark
Square, 18th Floor
	 		Stamford, CT
06901
	 		Attention: Chief Financial
Officer
	With a copy
to:		Fried, Frank, Harris, Shriver & Jacobson
LLP
	 		One New York
Plaza
	 		New York, NY
10004
	 		Attention: Stuart H.
Gelfond
	

If to the Purchaser: At the address
of the respective Purchaser as set forth in the records of the
Company.

or to such other address or to the attention of
such other person as the recipient party has specified by prior written
notice to the sending party.

H. No Strict
Construction.    The parties hereto have participated jointly in
the negotiation and drafting of this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly 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 of the
provisions of this Agreement.

IN WITNESS WHEREOF, the parties
hereto have executed this Purchase Agreement on the date first written
above.

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	 		BANK
STREET TELECOM FUNDING
CORP.
	 		By:		                                                                                
	 		 		Name:
	 		 		Title:
	 		THE
PURCHASERS:
	 		BSTFC Management
LLC
	 		By:		                                                                                
	 		 		Name:
	 		 		Title:
	 		                                                                                            
	 		R.C.
Mark
Baker
	 		                                                                                            
	 		Sir
John Baring,
Bt.
	 		                                                                                            
	 		Royce
J.
Holland
	 		                                                                                            
	 		Joel
D.
Gross
	 		                                                                                            
	 		Brett
Cohen
	

9

Table of Contents

Exhibit
A

							
	BSTFC
Management LLC		$		 
	R.C. Mark
Baker		$		 
	Sir John Baring,
Bt.		$		 
	Royce J.
Holland		$		 
	Joel D.
Gross		$		 
	Brett
Cohen		$		 
	

10Table of Contents
FORM OF
STOCK
ESCROW AGREEMENT

This STOCK ESCROW AGREEMENT (this
‘‘Agreement’’) is made as of April
  , 2006, by and among Bank Street Telecom Funding Corp.,
a Delaware corporation (the ‘‘Company’’),
the parties listed in Exhibit A attached hereto (each, an
‘‘Initial Stockholder’’ and
collectively, the ‘‘Initial
Stockholders’’) and Continental Stock
Transfer & Trust Company (the ‘‘Escrow
Agent’’), a New York corporation.

WHEREAS,
the Company has entered into an Underwriting Agreement, dated
          , 2006 ("Underwriting
Agreement’’), with Citigroup Global Markets Inc.
acting as the representative of the underwriters (the
‘‘Underwriters’’), pursuant to
which, among other matters, the Underwriters have agreed to purchase
11,000,000 units ("Units’’) of the
Company. Each Unit consists of one share of the Company’s common
stock, par value $0.0001 per share ("Common
Stock’’), and one warrant
("Warrant’’), which Warrant entitles
the holder thereof to purchase one share of Common Stock, all as more
fully described in the Company’s final Prospectus, dated April
 , 2006 ("Prospectus’’)
comprising part of the Company’s registration statement on Form
S-1 initially filed with the Securities and Exchange Commission on
August  5,  2005 (File No. 333-127238), as amended
("Registration Statement’’), declared
effective on April   , 2006 ("Effective
Date’’); and

WHEREAS, the Initial
Stockholders have agreed as a condition of the sale of the Units to
deposit their shares of Common Stock of the Company, as set forth
opposite their respective names in Exhibit A attached hereto
(collectively ‘‘Escrow Shares’’), in
escrow as hereinafter provided; and

WHEREAS, the Company
and the Initial Stockholders desire that the Escrow Agent accept the
Escrow Shares, in escrow, to be held and distributed as hereinafter
provided; and

NOW, THEREFORE, in consideration of
the mutual agreements herein contained, the parties hereto agree as
follows:

1. Appointment of Escrow Agent. The
Company and the Initial Stockholders hereby appoint the Escrow Agent to
act in accordance with and subject to the terms of this Agreement and
the Escrow Agent hereby accepts such appointment and agrees to act in
accordance with and subject to such terms.

2. Deposit
of Escrow Shares. On or before the Effective Date, each of the
Initial Stockholders shall deliver to the Escrow Agent certificates
representing his, her or its respective Escrow Shares to be held and
distributed subject to the terms and conditions of this Agreement. Each
Initial Stockholder acknowledges that the certificate representing his,
her or its Escrow Shares is legended to reflect the deposit of such
Escrow Shares under this Agreement.

3. Distribution of
the Escrow Shares. The Escrow Agent shall release from escrow all
of the Escrow Shares on the expiration of one year after the
acquisition by the Company, whether by merger, capital stock exchange,
asset acquisition, or stock purchase or other business combination
transaction, of one or more operating businesses within the
communications industry that is its initial business combination and
which meets the size, timing and other criteria outlined in the
Registration Statement (the ‘‘Business
Combination’’) is consummated. As soon as practicable
after the Escrow Shares are released from escrow, the Escrow Agent
shall distribute the released Escrow Shares to the Initial Stockholders
in accordance with their ownership interests; provided,
however, that if the Escrow Agent is notified by the Company
pursuant to Section 6.7 hereof that the Company is being
liquidated at any time during which the Escrow Shares are being held in
escrow, then the Escrow Agent shall promptly destroy the certificates
representing the Escrow Shares; provided, further, that if,
after the Company consummates a Business Combination, the Company (or
the surviving entity) subsequently consummates a liquidation, merger,
stock exchange or other similar transaction which results in all of the
stockholders of the Company (or the surviving entity) having the right
to exchange their shares of Common Stock for cash, securities or other
property, then the Escrow Agent will, upon receipt of a certificate
executed by the Chief Executive Officer or Chief Financial Officer of
the Company, in form reasonably acceptable to the Escrow Agent, that
such transaction is then being consummated, release the Escrow Shares
to the Initial Stockholders upon consummation of the transaction so
that they can 

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similarly participate. The Escrow Agent shall
have no further duties hereunder after the distribution or destruction
of the Escrow Shares in accordance with this
Section 3.

4. Rights of Initial Stockholders in
Escrow Shares.

4.1.    Voting Rights as a
Stockholder. Subject to the terms of the Insider Letters described
in Section 4.4 hereof and except as herein provided, the Initial
Stockholders shall retain all of their rights as stockholders of the
Company during any period in which Escrow Shares are held in escrow,
including, without limitation, the right to vote such
shares.

4.2.    Dividends and Other Distributions in
Respect of the Escrow Shares. During any period in which Escrow
Shares are held in escrow, all dividends payable in cash with respect
to the Escrow Shares shall be paid to the Initial Stockholders, but all
dividends payable in stock or other non-cash property
("Non-Cash Dividends’’) shall be
delivered to the Escrow Agent to hold in accordance with the terms
hereof. As used herein, the term ‘‘Escrow
Shares’’ shall be deemed to include the Non-Cash
Dividends distributed thereon, if any.

4.3.    Restrictions
on Transfer. In order to induce the Underwriters to enter into the
Underwriting Agreement, the Initial Stockholders will not offer, sell,
contract to sell, pledge or otherwise dispose of (or enter into any
transaction which is designed to, or might reasonably be expected to,
result in the disposition (whether by actual disposition or effective
economic disposition due to cash settlement or otherwise), by the
Initial Stockholders or any affiliate of the Initial Stockholders or
any person in privity with the Initial Stockholders or any affiliate of
the Initial Stockholders), directly or indirectly, including the filing
(or participation in the filing) of a registration statement with the
Securities and Exchange Commission (the
‘‘Commission’’) in respect of, or
establish or increase a put equivalent position or liquidate or
decrease a call equivalent position within the meaning of
Section 16 of the Securities Exchange Act of 1934, as amended,
and the rules and regulations of the Commission promulgated thereunder
with respect to, any Escrow Shares, or publicly announce an intention
to effect any such transaction, during the period in which such Escrow
Shares are held in escrow, provided that the foregoing sentence
shall not apply to (a) any Escrow Shares disposed of as bona
fide gifts, (b) any gifting of Escrow Shares to family members
or family trusts, (c) any transfer for estate planning purposes
of Escrow Shares to persons related to such transferor by blood,
marriage or adoption, or any trust solely for the benefit of such
transferor and/or the persons described in the preceding clause, or
(d) the exercise of an option granted by one or more of the
Initial Stockholders to a third party prior to the date hereof;
provided, however, that with respect to each of the
transfers described in clauses (a), (b), (c) and (d) of this
sentence, prior to such transfer, the transferee of such transfer, or
the trustee or legal guardian on behalf of any transferee, agrees in
writing to be bound by the terms of this Agreement and of the
corresponding Insider Letters signed by the Initial Stockholder
transferring such Escrow Shares. During the period in which Escrow
Shares are held in escrow, the Initial Stockholders shall not pledge or
grant a security interest in such Escrow Shares or grant a security
interest in their rights under this
Agreement.

4.4.    Insider Letters. Each of the
Initial Stockholders has executed a letter agreement with the
Underwriters and a letter agreement with the Company, the form of which
are filed as exhibits to the Registration Statement
("Insider Letters’’), respecting the
rights and obligations of such Initial Stockholder in certain events,
including but not limited to the liquidation of the
Company.

5. Concerning the Escrow
Agent.

5.1.    Good Faith Reliance. The Escrow
Agent shall not be liable for any action taken or omitted by it in good
faith and in the exercise of its own best judgment, and may rely
conclusively and shall be protected in acting upon any order, notice,
demand, certificate, opinion or advice of counsel (including counsel
chosen by the Escrow Agent), statement, instrument, report or other
paper or document (not only as to its due execution and the validity
and effectiveness of its provisions, but also as to the truth and
acceptability of any information therein contained) which is believed
by the Escrow Agent to be genuine and to be signed or presented by the
proper person or persons. The Escrow Agent shall not be bound by any
notice or demand, or any waiver, modification, termination or
rescission of this 

2

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Agreement unless evidenced by a writing
delivered to the Escrow Agent signed by the proper party or parties
and, if the duties or rights of the Escrow Agent are affected, unless
it shall have given its prior written consent
thereto.

5.2.    Indemnification. The Escrow Agent
shall be indemnified and held harmless by the Company from and against
any expenses, including counsel fees and disbursements, or loss
suffered by the Escrow Agent in connection with any action, suit or
other proceeding involving any claim which in any way, directly or
indirectly, arises out of or relates to this Agreement, the services of
the Escrow Agent hereunder, or the Escrow Shares held by it hereunder,
other than expenses or losses arising from the gross negligence or
willful misconduct of the Escrow Agent. Promptly after the receipt by
the Escrow Agent of notice of any demand or claim or the commencement
of any action, suit or proceeding, the Escrow Agent shall notify the
other parties hereto in writing. In the event of the receipt of such
notice, the Escrow Agent, in its sole discretion, may commence an
action in the nature of interpleader in an appropriate court to
determine ownership or disposition of the Escrow Shares or it may
deposit the Escrow Shares with the clerk of any appropriate court or it
may retain the Escrow Shares pending receipt of a final, non-appealable
order of a court having jurisdiction over all of the parties hereto
directing to whom and under what circumstances the Escrow Shares are to
be distributed and delivered. The provisions of this Section 5.2
shall survive in the event the Escrow Agent resigns or is discharged
pursuant to Sections 5.5 or 5.6
below.

5.3.    Compensation. The Escrow Agent shall be
entitled to reasonable compensation from the Company for all services
rendered by it hereunder. The Escrow Agent shall also be entitled to
reimbursement from the Company for reasonable expenses paid or incurred
by it in the administration of its duties hereunder including, but not
limited to, reasonable counsel, advisors’ and agents’
fees and disbursements and all taxes or other governmental
charges.

5.4.    Further Assurances. From time to time
on and after the date hereof, the Company and the Initial Stockholders
shall deliver or cause to be delivered to the Escrow Agent such further
documents and instruments and shall do or cause to be done such further
acts as the Escrow Agent shall reasonably request to carry out more
effectively the provisions and purposes of this Agreement, to evidence
compliance herewith or to assure itself that it is protected in acting
hereunder.

5.5.    Resignation. The Escrow Agent may
resign at any time and be discharged from its duties as escrow agent
hereunder by its giving the other parties hereto written notice and
such resignation shall become effective as hereinafter provided. Such
resignation shall become effective at such time that the Escrow Agent
shall turn over to a successor escrow agent appointed by the Company,
the Escrow Shares held hereunder. If no new escrow agent is so
appointed within the 90 day period following the receipt by the Company
of such notice of resignation, the Escrow Agent may deposit the Escrow
Shares with any appropriate court it reasonably deems
appropriate.

5.6.    Discharge of Escrow Agent. The
Escrow Agent shall resign and be discharged from its duties as escrow
agent hereunder if so requested in writing at any time by the Company
and a majority of the Initial Stockholders, jointly, provided,
however, that such resignation shall become effective only upon
acceptance of appointment by a successor escrow agent as provided in
Section 5.5.

5.7.    Liability. Notwithstanding
anything herein to the contrary, the Escrow Agent shall not be relieved
from liability hereunder for its own gross negligence or its own
willful
misconduct.

6.    Miscellaneous.

6.1.    Governing
Law. The validity, interpretation, and performance of this
Agreement shall be governed in all respects by the laws of the State of
New York, without giving effect to any choice or conflict of law,
provision or rule (whether of the State of New York or any other
jurisdiction that would cause the application of the laws of any
jurisdiction other than the State of New York). The Company hereby
agrees that any action, proceeding or claim against it arising out of
or relating in any way to this Agreement shall be brought and enforced
in the courts of the State of New York or the United States District
Court for the Southern District of New York, and irrevocably submits to
such jurisdiction, which jurisdiction shall be exclusive. The Company
hereby waives any objection to such exclusive jurisdiction and that
such courts represent an inconvenience forum. Any such process or

3

Table of Contents

summons to be served upon the Company may be
served by transmitting a copy thereof by registered or certified mail,
return receipt requested, postage prepaid, addressed to it at the
address set forth in Section 6.6 hereof. Such mailing shall be
deemed personal service and shall be legal and binding upon the Company
in any action, proceeding or claim.

6.2.    Entire
Agreement. This Agreement contains the entire agreement of the
parties hereto with respect to the subject matter hereof and, except as
expressly provided herein, may not be changed or modified except by an
instrument in writing signed by the party to be
charged.

6.3.    Headings. The headings contained in
this Agreement are for reference purposes only and shall not affect in
any way the meaning or interpretation
thereof.

6.4.    Binding Effect. This Agreement shall
be binding upon and inure to the benefit of the respective parties
hereto and their legal representatives, successors and
assigns.

6.5.    Notices. Any notice, consent or
request to be given in connection with any of the terms or provisions
of this Agreement shall be in writing and shall be sent by express mail
or similar private courier service, by certified mail (return receipt
requested) or by hand delivery:

If to the Escrow Agent,
to:

Continental Stock Transfer & Trust
Company
17 Battery Place, New York, NY 10004
Attention:
Compliance Department

If to the Company, to:

Bank
Street Telecom Funding Corp.
One Landmark Square, 18th
Floor
Stamford, Connecticut 06901
Attention: Chief Executive
Officer

with a copy to:

Fried, Frank,
Harris, Shriver & Jacobson LLP
One New York Plaza
New York,
NY 10004
Attention: Stuart H. Gelfond

in either case with a
copy to:

Citigroup Global Markets Inc.
390 Greenwich
Street
New York, New York 10038
Attention:
[  ]

The parties may change the
persons and addresses to which the notices or other communications are
to be sent by giving written notice to any such change in the manner
provided herein for giving notice.

6.6.    Liquidation of
Company. The Company shall give the Escrow Agent written
notification of the liquidation and dissolution of the Company in the
event that the Company fails to consummate a Business Combination
within the time period(s) specified in the
Prospectus.

[signature page
follows]

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

		CONTINENTAL STOCK TRANSFER & TRUST COMPANY,
as Escrow Agent

		By:
                                                                        

		Name:
Title:

		BANK
STREET TELECOM FUNDING CORP.

		By:
                                                                        

		Name:
Title:

		BSTFC MANAGEMENT LLC 

		By:
                                                                        

		Name:
Title:

		R.C. MARK BAKER 

		By:
                                                                        

		SIR
JOHN BARING, BT. 

		By:
                                                                        

		ROYCE
J. HOLLAND 

		By:
                                                                        

		JOEL
D. GROSS 

		By:
                                                                        

		BRETT
COHEN 

		By:
                                                                        

5

Table of Contents
EXHIBIT A

BSTFC Management
LLC
R.C. Mark Baker
Sir John Baring, Bt.
Royce J.
Holland
Joel D. Gross
Brett
Cohen

6

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