Document:

Exhibit 4.1

 

EXECUTION VERSION

 

 

 

QWEST COMMUNICATIONS INTERNATIONAL INC.

 

 

7.125% Senior Notes due 2018

 

 

 

Fourth Supplemental Indenture

 

Dated as of January 12, 2010

 

 

 

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  
	
  ARTICLE I.

  
	
   

  
	
  THE 7.125% SENIOR NOTES DUE 2018

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Designation of Notes

  	
  2

  
	
  SECTION 1.02.

  	
  Other Terms of the Notes

  	
  2

  
	
   

  	
   

  
	
  ARTICLE II.

  
	
   

  
	
  APPOINTMENT OF U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  Appointment of U.S. Bank National Association

  	
  2

  
	
  SECTION 2.02.

  	
  Acceptance of Trustee

  	
  3

  
	
  SECTION 2.03.

  	
  Qualification of Trustee

  	
  3

  
	
  SECTION 2.04.

  	
  Notice

  	
  3

  
	
   

  
	
  ARTICLE III.

  
	
   

  
	
  AMENDMENTS TO THE INDENTURE

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Amendments to the Indenture

  	
  3

  
	
   

  
	
  ARTICLE
  IV.

  
	
   

  
	
  MISCELLANEOUS

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Amendment and Supplement

  	
  4

  
	
  SECTION 4.02.

  	
  Indenture

  	
  4

  
	
  SECTION 4.03.

  	
  Governing Law

  	
  4

  
	
  SECTION 4.04.

  	
  No Adverse Interpretation of Other Agreements

  	
  4

  
	
  SECTION 4.05.

  	
  Successors and Assigns

  	
  4

  
	
  SECTION 4.06.

  	
  Duplicate Originals

  	
  4

  
	
  SECTION 4.07.

  	
  Severability

  	
  5

  
				

 

i

 

Exhibits

 

	
  EXHIBIT
  A

  	
  -

  	
  FORM OF
  SENIOR NOTE

  
	
  EXHIBIT
  B -

  	
   

  	
  CERTIFICATE
  TO BE DELIVERED UPON EXCHANGE OR REGISTRATION OF TRANSFER RESTRICTED NOTES

  
	
  EXHIBIT
  C

  	
  -

  	
  FORM OF
  CERTIFICATE TO BE DELIVERED IN CONNECTION TO TRANSFERS PURSUANT TO REGULATION
  S

  
	
  EXHIBIT D

  	
  -

  	
  FORM OF GUARANTEE

  

 

ii

 

FOURTH SUPPLEMENTAL INDENTURE dated as of January 12, 2010 (this “Supplemental
Indenture”) by and among QWEST COMMUNICATIONS INTERNATIONAL INC., a
Delaware corporation (the “Company”), the
Guarantors named in the Base Indenture (as defined below) and U.S. BANK
NATIONAL ASSOCIATION, as trustee with respect to the Notes (as defined below)
(the “Trustee”).  The Trustee, and each other trustee appointed
as such with respect to the Securities (as defined below) of any series issued
under the Indenture (as defined below), shall be the “Trustee” (as defined in
the Indenture, as supplemented hereby) for all purposes under the Indenture
with respect to the applicable series of Securities but, for the avoidance of
doubt, not with respect to any series of Securities for which such Trustee has
not been appointed trustee under the terms of the Indenture and/or any supplement
thereto).

 

Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the holders of Notes:

 

WHEREAS, the Company, the Guarantors and The Bank of
New York Trust Company, N.A. (as successor in interest to J.P. Morgan Trust
Company, National Association), are parties to that certain Indenture dated as
of February 5, 2004 (the “Base Indenture,”
as amended and supplemented by the First Supplemental Indenture by and among
the Company, the Guarantors and the Trustee dated as of June 17, 2005, the
Second Supplemental Indenture by and among the Company, the Guarantors and the
Trustee dated as of June 23, 2005, the Third Supplemental Indenture by and
among the Company, the Guarantors and the Trustee dated as of September 17,
2009 and this Supplemental Indenture, the “Indenture”)
providing for the issuance from time to time of senior debt securities (“Securities”) to be issued in one or more series.

 

WHEREAS, the Company desires and has requested the
Trustee to join it in the execution and delivery of this Supplemental Indenture
in order to establish and provide for the issuance by the Company of a series
of Securities, designated as its 7.125% Senior Notes due 2018 (the “Notes”), in an initial aggregate principal amount of
$800,000,000.  The Notes shall be substantially
in the form attached hereto as Exhibit A.  Capitalized terms used in this Supplemental Indenture
but not defined herein shall have the meanings set forth in the Base Indenture.

 

WHEREAS, Section 10.01 of the Indenture
provides that a supplemental indenture may be entered into by the Company and
the Trustee without the consent of any Holders to establish the form or terms
of Additional Notes as permitted by Section 2.15 of the Indenture;

 

WHEREAS, the conditions set forth in the Indenture
for the execution and delivery of this Supplemental Indenture have been
complied with;

 

WHEREAS, all things necessary to make this
Supplemental Indenture a valid agreement of the Company, the Guarantors and the
Trustee, in accordance with its terms, and a valid amendment of, and supplement
to, the Indenture have been done.

 

NOW, THEREFORE, in consideration of the premises and
the purchase and acceptance of the Notes by the holders thereof, the Company
covenants and agrees with the Trustee, for the equal and ratable benefit of the
Holders, that the Indenture is supplemented and amended, to the extent
expressed herein, as follows:

 

 

ARTICLE
I.

 

THE
7.125% SENIOR NOTES DUE 2018

 

SECTION 1.01.                                         Designation of
Notes.

 

Pursuant to this Supplemental Indenture, there is
hereby designated a series of Additional Notes under the Indenture entitled “7.125% Senior Notes due 2018.” 
The Notes shall be in the form of Exhibit A hereto.  The Notes may bear an appropriate legend
regarding original issue discount for federal income tax purposes.  Subject to the terms in the Indenture, the
Company may, at its option, without consent from the Holders, issue additional
Notes from time to time.  For all purposes
under the Indenture, the term “Notes” shall include the Notes and any other
Notes issued after the date hereof under the Indenture.

 

SECTION 1.02.                                         Other Terms of
the Notes.

 

Without limiting the foregoing provisions of this Article One,
the terms of the Notes shall be as set forth in the form of Note set forth in Exhibit A
hereto and as provided in the Indenture, as supplemented hereby.

 

The Notes shall be payable and may be presented for
payment, purchase, conversion, registration of transfer and exchange, without
service charge, at the office of the Company maintained for such purpose in New
York, New York, which shall initially be the office or agency of the Trustee.

 

ARTICLE
II.

 

APPOINTMENT
OF U.S. BANK NATIONAL ASSOCIATION

 

SECTION 2.01.                                         Appointment of
U.S. Bank National Association.

 

The Company hereby appoints the Trustee as trustee
under the Indenture with respect to the Notes and each other series of Securities
for which the Trustee shall be appointed by the Company pursuant to the
Indenture, to act as Trustee under the Indenture, and confirms to the Trustee
all of the rights, powers, and trusts of a Trustee under the Indenture with
respect to the Notes and each other series of Securities for which the Trustee
shall be appointed by the Company to act as Trustee under the Indenture.  The Company shall execute and deliver such
further instruments and do such other things as the Trustee may reasonably
require to more fully and certainly vest and confirm in the Trustee all the
rights, trusts, and powers hereby delivered and confirmed upon the Trustee
hereunder and under the Indenture.

 

2

 

SECTION 2.02.                                         Acceptance of
Trustee.

 

The Trustee hereby accepts its appointment as
trustee with respect to the Notes and shall hereby be vested with all of the
authority, rights, powers, trusts, immunities, duties, benefits and obligations
of a Trustee under the Indenture.

 

SECTION 2.03.                                         Qualification
of Trustee.

 

The Trustee hereby represents and warrants to the
Company that the Trustee is qualified under the provisions of Section 310 of
the Trust Indenture Act of 1939, as amended, and Section 7.10 of the
Indenture to act as trustee with respect to the Notes under the Indenture.

 

SECTION 2.04.                                         Notice.

 

Any notice or communications by the Trustee is duly
given if in writing and delivered in person or mailed by certified mail to:

 

U.S.
Bank National Association

950 17th Street, Suite 1200

Denver, CO 80202

Attn: Corporate Trust Services

 

ARTICLE
III.

 

AMENDMENTS
TO THE INDENTURE

 

SECTION 3.01.                                         Amendments to
the Indenture.

 

Pursuant to Section 10.01(a) and (f) of
the Base Indenture, the Indenture is hereby amended as follows:

 

(a)                                  the definition
of “Reference Treasury Dealer” in Section 1.01 of the Base Indenture is
hereby amended and restated in its entirety but only insofar as it relates to
the Notes as follows:

 

“‘Reference Treasury Dealer’ means
Deutsche Bank Securities Inc. and its respective successors or any of its
affiliates; provided, however, that if any of the foregoing shall cease to be a
Primary Treasury Dealer, QCII shall substitute therefor another Primary
Treasury Dealer.”

 

(b)                                  the definition
of “Credit Agreement” in Section 1.01 of the Base Indenture is hereby
amended and restated in its entirety but only insofar as it relates to the
Notes and any other series of Securities originally issued after the date
hereof as follows:

 

“‘Credit Agreement’ means the Credit
Agreement dated as of December 18, 2009 among  QCII, QSC, Wachovia Bank, National
Association, as administrative agent, and the other lenders named therein,
including any notes, guarantees, collateral and security documents, instruments
and agreements executed in connection therewith (including Hedging Obligations
related to the Indebtedness incurred thereunder), and in each case as amended,
restated, supplemented or refinanced from time to time, including any agreement

 

3

 

extending the maturity of, refinancing, replacing or otherwise
restructuring (including increasing the amount of borrowings or other
Indebtedness outstanding or available to be borrowed thereunder) all or any
portion of the Indebtedness under such agreement, and any successor or
replacement agreement or agreements with the same or any other agents,
creditor, lender or group of creditors or lenders.”

 

(c)                                  clause (c) of
Section 4.06(b)(iv) of the Base Indenture is hereby amended and restated
in its entirety but only insofar as it relates to the Notes as follows:

 

“(c) the Additional Notes issued pursuant to the Fourth
Supplemental Indenture dated as of January 12, 2010;”

 

ARTICLE
IV.

 

MISCELLANEOUS

 

SECTION 4.01.                                         Amendment and
Supplement.

 

This Supplemental Indenture or the Notes may be
amended or supplemented as provided for in the Indenture.

 

SECTION 4.02.                                         Indenture.

 

In the event of any conflict between this
Supplemental Indenture and the Indenture, the provisions of this Supplemental
Indenture shall prevail.

 

SECTION 4.03.                                         Governing Law.

 

The laws of the State of New York shall govern this
Supplemental Indenture and the Notes of the Series created hereby.

 

SECTION 4.04.                                         No Adverse
Interpretation of Other Agreements.

 

This Supplemental Indenture may not be used to
interpret another indenture, loan or debt agreement of the Company or a
Subsidiary.  Any such indenture, loan or
debt agreement may not be used to interpret this Supplemental Indenture.

 

SECTION 4.05.                                         Successors and
Assigns.

 

All covenants and agreements of the Company in this
Supplemental Indenture and the Notes shall bind its successors and
assigns.  All agreements of the Trustee
in this Supplemental Indenture shall bind its successors and assigns.

 

SECTION 4.06.                                         Duplicate
Originals.

 

This Supplemental Indenture may be executed in
counterparts, each of which shall be an original, but such counterparts shall
together constitute but one instrument.

 

4

 

SECTION 4.07.                                         Severability.

 

In case any one or more of the provisions contained
in this Supplemental Indenture or in the Notes shall for any reason be held to
be invalid, illegal or unenforceable in any respect, such invalidity,
illegality or unenforceability shall not affect any other provisions of this
Supplemental Indenture or of the Notes.

 

[Signature Pages Follow]

 

5

 

SIGNATURES

 

IN WITNESS WHEREOF, the parties have caused this
Supplemental Indenture to be duly executed, all as of the date first above
written.

 

	
   

  	
  QWEST COMMUNICATIONS

  INTERNATIONAL INC.

  
	
   

  	
  QWEST
  SERVICES CORPORATION

  
	
   

  	
  QWEST
  CAPITAL FUNDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  U.S.
  BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

S-1

 

EXHIBIT A

 

[FORM OF
FACE OF INITIAL NOTE]

 

[GLOBAL
NOTES LEGEND](1)

 

UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR
NOTES IN DEFINITIVE FORM, THIS NOTE 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 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 (“DTC”), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR 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.

 

[RESTRICTED
NOTES LEGEND](2)

 

THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED,
SOLD, PLEDGED, OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING
SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL INTEREST HEREIN, THE
ACQUIRER: (1) REPRESENTS THAT IT, AND ANY ACCOUNT FOR WHICH IT IS ACTING,
IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT) AND THAT IT EXERCISES SOLE IN-VESTMENT DISCRETION WITH RESPECT
TO EACH SUCH ACCOUNT OR IS NOT A U.S. PERSON, AS SUCH TERM IS DEFINED IN RULE
902 UNDER THE SECURITIES ACT, AND IS PURCHASING THE NOTES IN ACCORDANCE WITH
REGULATION S; AND (2) AGREES FOR THE BENEFIT OF THE COMPANY THAT IT WILL NOT
OFFER, SELL, PLEDGE, OR OTHERWISE TRANSFER THIS SECURITY OR ANY BENEFICIAL
INTEREST HEREIN PRIOR TO THE RESALE RESTRICTION TERMINATION DATE (AS DEFINED
BELOW), EXCEPT: (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF; OR (B) PURSUANT
TO A REGISTRATION STATEMENT THAT HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT;
OR (C) TO A QUALIFIED INSTITUTIONAL

 

(1)                                  Include only on
Notes issued in global form.

 

(2)                                  This legend
will be deemed removed from the face of any Note without further action of the
Issuer, the Trustee or the Holder of such Note at such time the Issuer notifies
the Trustee that this legend may be removed pursuant to the terms of the
Indenture.

 

A-1

 

BUYER IN COMPLIANCE WITH
RULE 144A UNDER THE SECURITIES ACT; OR (D) PURSUANT TO AN EXEMPTION FROM
REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.
THE RESALE RESTRICTION TERMINATION DATE WILL BE THE DATE (1) THAT IS AT
LEAST ONE YEAR AFTER THE LAST ORIGINAL ISSUE DATE HEREOF AND (2) ON WHICH
THE DEPOSITORY, UPON DIRECTION FROM THE TRUSTEE, SHALL HAVE TRANSFERRED THE
BENEFICIAL INTEREST REPRESENTED HEREBY TO A SECURITY POSITION BEARING AN
UNRESTRICTED CUSIP NUMBER, FOLLOWING THE COMPANY’S INSTRUCTION TO THE TRUSTEE
THAT THIS LEGEND SHALL BE DEEMED REMOVED FROM THIS SECURITY IN ACCOR-DANCE WITH
THE PROCEDURES DESCRIBED IN THE INDENTURE RELATING TO THIS SECURITY. PRIOR TO
THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(D) ABOVE, THE COMPANY
AND THE TRUSTEE RE-SERVE THE RIGHT TO REQUIRE THE DELIVERY OF SUCH LEGAL
OPINIONS, CERTIFICATIONS, OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED
IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE
WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION
IS MADE AS TO THE AVAILABILITY OF ANY EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF THE SECURITIES ACT.

 

[THIS GLOBAL NOTE IS A
TEMPORARY GLOBAL NOTE FOR PURPOSES OF REGULATION S UNDER THE UNITED STATES
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”).  NEITHER
THIS TEMPORARY GLOBAL NOTE NOR ANY INTEREST HEREIN MAY BE OFFERED, SOLD OR
DELIVERED, EXCEPT AS PERMITTED UNDER THE INDENTURE REFERRED TO BELOW.  NO BENEFICIAL OWNERS OF THIS TEMPORARY GLOBAL
NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT OF PRINCIPAL OR INTEREST HEREON
UNLESS THE REQUIRED CERTIFICATIONS HAVE BEEN DELIVERED PURSUANT TO THE TERMS OF
THE INDENTURE.](3)

 

(3)                              This legend to
appear only on Temporary Regulation S Global Notes.

 

A-2

 

THIS NOTE IS ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR
PURPOSES OF SECTION 1271 ET SEQ. OF THE INTERNAL REVENUE CODE.  A HOLDER MAY OBTAIN THE ISSUE PRICE,
AMOUNT OF ORIGINAL ISSUE DISCOUNT, ISSUE DATE AND YIELD TO MATURITY FOR SUCH
NOTE BY SUBMITTING A REQUEST FOR SUCH INFORMATION TO THE COMPANY AT THE
FOLLOWING ADDRESS: 1801 CALIFORNIA STREET, DENVER, CO 80202, ATTENTION: CHIEF
FINANCIAL OFFICER.

 

7.125% SENIOR NOTE DUE 2018

 

	
  No.

  	
   

  	
  CUSIP No.       *

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $               

  

 

QWEST COMMUNICATIONS INTERNATIONAL INC., a Delaware
corporation (the “Company”), promises to pay
to                          ,
or its registered assigns, the principal sum of            
in U.S. Dollars on April 1, 2018.

 

Interest Payment Dates:  April 1 and October 1

 

Record Dates: 
March 15 and September 15

 

Additional provisions of this Note are set forth on
the other side of this Note.

 

* At such time as the Private Placement Legend
may be removed pursuant to the terms of Section 2.16 of the Indenture (as
defined below), the CUSIP number for this Note shall be deemed to be CUSIP No. 
[                    ].

 

A-3

 

	
   

  	
   

  	
  QWEST
  COMMUNICATIONS INTERNATIONAL INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TRUSTEE’S
  CERTIFICATE OF AUTHENTICATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  U.S.
  BANK NATIONAL ASSOCIATION

  	
   

  	
   

  
	
  as
  Trustee, certifies that this is one of the

  	
   

  	
   

  
	
  Notes
  referred to in the Indenture.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  by

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized
  Signatory

  	
   

  	
   

  

 

A-4

 

[FORM OF
REVERSE SIDE OF NOTE]

 

7.125% Senior Note due 2018

 

1.                                       Interest

 

QWEST COMMUNICATIONS INTERNATIONAL INC., a Delaware
corporation (the “Company”), promises to pay interest on the principal
amount of this Note at the rate per annum shown above and shall pay Additional
Interest, if any, payable pursuant to the Registration Rights Agreement (the “Registration
Rights Agreement”) dated January 12, 2010 by and among the Company, the
Guarantors and the Initial Purchasers (as such is defined in the Registration
Rights Agreement).

 

The Company will pay interest and Additional
Interest, if any, semi-annually in arrears on April 1 and October 1 of each year commencing on October 1, 2010.  Interest on the Notes will accrue from the
most recent date to which interest has been paid or, if no interest has been
paid, from and including the issue date
of this Note.  Interest will be
computed on the basis of a 360-day year comprised of a 360-day year comprised
of twelve 30-day months.  The Company
shall pay interest on overdue principal at the rate borne by the Notes, and it
shall pay interest on overdue installments of interest at the same rate to the
extent lawful.

 

2.                                       Method of
Payment

 

The Company will pay interest (except defaulted
interest) on and Additional Interest, if any, in respect of this Note to the
Persons who are registered holders of this Note at the close of business on the March 15 or September 15 immediately
preceding the interest payment date even if Notes are canceled after the record
date and on or before the interest payment date.  Holders must surrender this Note to a Paying
Agent to collect principal payments.  The
Company will pay principal and interest in money of the United States that at
the time of payment is legal tender for payment of public and private
debts.  However, the Company may pay
principal and interest by check payable in such money or by wire transfer of
federal funds.

 

3.                                       Paying Agent
and Registrar

 

Initially, U.S. Bank National Association (the “Trustee”)
will act as Paying Agent and Registrar. 
The Company may appoint and change any Paying Agent, Registrar or
co-registrar without notice to the Holders. 
The Company may act as Paying Agent, Registrar or co-registrar.

 

4.                                       Indenture

 

This Note is issued under an Indenture dated as of February 5,
2004, among the Company, the Guarantors and The Bank of New York Trust Company,
N.A. (as successor in interest to J.P. Morgan Trust Company, National Association),
as trustee (the “Base Indenture”), as amended and supplemented by the
First Supplemental Indenture among the Company, the Guarantors and the Trustee
dated June 17, 2005 (the “First Supplemental Indenture”), the
Second Supplemental Indenture among the Company, the Guarantors and the Trustee
dated June 23, 

 

A-5

 

2005 (the “Second
Supplemental Indenture”), the Third Supplemental Indenture among the
Company, the Guarantors and the Trustee dated September 17, 2009 (the “Third Supplemental Indenture”),
and the Fourth Supplemental Indenture among the Company, the Guarantors and the
Trustee dated January 12,
2010 (the “Fourth Supplemental Indenture,” and together with the Base
Indenture, the First Supplemental Indenture, the Second Supplemental Indenture
and the Third Supplemental Indenture, the “Indenture”).  This Note is part of the series of the Company’s
7.125% Senior Notes due 2018, and this Note is being issued as
part of an issuance of Additional Notes under the Indenture.  Additional Notes of the same or a different
series may be issued in an unlimited amount subject to compliance with Section 4.06
of the Indenture.  For purposes of this
Note, references to the Notes include the Notes, Additional Notes and Exchange
Notes issued in exchange for such Notes and Additional Notes pursuant to the
Indenture.  However, to the extent
provided in the Indenture, all Notes, Additional Notes of the same series and
Exchange Notes issued in exchange therefor will be considered together part of
a single series of Notes and may be considered a part of a single class of
Notes with any Additional Notes issued under the Indenture for certain
purposes.  The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference
to the TIA.  Terms defined in the Indenture
and not defined herein have the meanings ascribed thereto in the
Indenture.  The Notes are subject to all
such terms, including in the event of a conflict with this Note, and
Noteholders are referred to the Indenture and the TIA for a statement of those
terms.

 

The Notes are the senior obligations of the
Company.  The Indenture imposes certain
limitations on the incurrence of Indebtedness by the Company and its Restricted
Subsidiaries; the payment of dividends and other payments by the Company and
its Restricted Subsidiaries; Investments; sales of assets of the Company and
Restricted Subsidiaries; certain transactions with Affiliates; Liens; and
consolidations, mergers and transfers of all or substantially all of the Company’s
or a Guarantor’s assets.  In addition,
the Indenture prohibits certain restrictions on distributions from Restricted
Subsidiaries.

 

5.                                       Optional
Redemption

 

(i)  Except as set forth below, the Notes
may not be redeemed prior to April 1, 2013.  At any time on or after April 1, 2013,
the Notes will be subject to redemption at the option of the Company, in whole
or in part, at the redemption prices (expressed as percentages of principal
amount) set forth below, plus accrued and unpaid interest and Additional
Interest, if any, thereon, to the applicable redemption date (subject to the
right of Holders on the relevant record date to receive interest due on the relevant
interest payment date), if redeemed during the twelve-month period beginning on
April 1 of the years
indicated below:

 

	
  Year

  	
   

  	
  Price

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2013

  	
   

  	
  103.563

  	
  %

  
	
  2014

  	
   

  	
  101.781

  	
  %

  
	
  2015 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

(ii)                                  In addition, the Company may
redeem all or a part of the Notes upon not less than 30 nor more than
60 days’ notice, at a redemption price equal to the greater of (1) 100%
of the 

 

A-6

 

principal amount thereof or (2) the
present value, as determined by an Independent Financial Advisor, of (A) the
applicable percentage set forth above of the principal amount of the Notes
being redeemed as of April 1 of
the first period set forth above ending on or after the date of such redemption
(assuming a 360-day year consisting of twelve 30-day months) plus (B) all
required interest payments due on such Notes through April 1 of such period (excluding accrued
interest), discounted to the redemption date on a semiannual basis (assuming a
360-day year consisting of twelve 30-day months) at the Treasury Rate plus
0.50%, plus in each case accrued interest to the redemption date.

 

(iii)                               Notwithstanding the
foregoing, at any time prior to April 1, 2013, the Company may redeem up
to 35% of the aggregate principal amount of the Notes outstanding at a redemption
price equal to 107.125% of the
principal amount thereof, together with accrued and unpaid interest to such
redemption date, with the net cash proceeds of any capital contributions to the
Company in respect of Qualified Equity Interests or one or more public or
private sales by the Company of Qualified Equity Interests (other than proceeds
from a sale to any of the Company’s Subsidiaries or any employee benefit plan
in which the Company or any of its Subsidiaries participates); provided that:

 

(a)                                  at least 65% in aggregate of
the originally issued principal amount of the Notes remain outstanding
immediately after the occurrence of such redemption; and

 

(b)                                 the sale of such Qualified
Equity Interests is made in compliance with the terms of the Indenture.

 

6.                                       Notices of
Redemption

 

Except as otherwise provided in the Indenture or
herein, notices of redemption shall be mailed by first-class mail at least 30
days but not more than 60 days before the redemption date to each Holder of
Notes to be redeemed at its registered address all in accordance with the Indenture.  If less than all of the Notes are to be
redeemed at any time, selection of Notes for redemption will be made by the
Trustee in compliance with the requirements of the principal national
securities exchange, if any, on which the Notes are listed, or, if the Notes
are not so listed, on a pro  rata basis, by lot or by such method as the Trustee shall
deem fair and appropriate; provided that
no Notes of $1,000 or less shall be redeemed in part; provided
that any redemption pursuant to paragraph 5(iii) shall be effected on a pro rata basis.  If
any Note is to be redeemed in part only, the notice of redemption that relates
to such Note shall state the portion of the principal amount thereof to be
redeemed.  On and after the redemption
date, interest ceases to accrue on Notes or portions of them called for redemption.

 

7.                                       Repurchase at
the Option of the Holder

 

(a)                                  Upon a Change of Control,
any Holder of Notes will have the right, subject to certain conditions set
forth in the Indenture, to require the Company to repurchase all or any part
(equal to $1,000 or an integral multiple thereof) of the Notes of such Holder
at a purchase price equal to 101% of the aggregate principal amount of the
Notes to be repurchased plus accrued and unpaid interest and Additional
Interest, if any, thereon, to the date of repurchase (subject to the 

 

A-7

 

right of Holders of record
on the relevant record date to receive interest due on the relevant interest payment
date that is on or prior to the date of repurchase) as provided in, and subject
to the terms of, the Indenture.

 

(b)                                 If the Company or a
Subsidiary consummates any Asset Sales, within ten Business Days of each date
on which the aggregate amount of Excess Proceeds exceeds $50.0 million, the
Company will commence an offer to all Holders of Notes and all holders of
certain other Indebtedness containing provisions similar to those set forth in
the Indenture with respect to offers to purchase or redeem with the proceeds of
sales of assets (an “Asset Sale Offer”) pursuant to Section 4.09 of
the Indenture to purchase the maximum principal amount of Notes (including any
Additional Notes) that may be purchased out of the Excess Proceeds at an offer
price in cash in an amount equal to 100% of the principal amount thereof plus
accrued and unpaid interest and Additional Interest thereon, if any, to the
date fixed for the closing of such offer, in accordance with the procedures set
forth in the Indenture.  To the extent
that the aggregate amount of Notes (including any Additional Notes) and such
other Indebtedness tendered pursuant to an Asset Sale Offer is less than the
Excess Proceeds, the Company (or such Subsidiary) may use such deficiency for
any purpose not otherwise prohibited by the Indenture.  If the aggregate principal amount of Notes
and such other Indebtedness surrendered by the Holders thereof exceeds the
amount of Excess Proceeds, the Trustee shall select the Notes and such other
Indebtedness to be purchased on a pro rata basis.  Holders of Notes that are the subject of an offer
to purchase will receive an Asset Sale Offer from the Company prior to any related
purchase date and may elect to have such Notes purchased by completing the form
entitled “Option of Holder to Elect Purchase” on the reverse of the Notes.

 

8.                                       Guarantees

 

All obligations in respect of this Note have been
fully and unconditionally guaranteed by Qwest Capital Funding, Inc. (“QCF”)
and Qwest Services Corporation (“QSC”) on a joint and several basis pursuant to
the Indenture.  As of the original issue
date with respect to this Note, in accordance with the terms of the Indenture,
there is no Collateral securing the Notes or the guarantees thereof.

 

The guarantee by QCF of the Notes will be a senior unsecured
guarantee, ranking pari passu in right of payment with all other unsubordinated
obligations of QCF and ranking senior in right of payment to all existing and
future obligations of QCF that are expressly subordinated to the QCF guarantee.

 

The guarantee by QSC of the Notes will be a senior
unsecured guarantee, ranking pari passu in right of payment with all other
unsubordinated obligations of QSC and ranking senior in right of payment to all
existing and future obligations of QSC that are expressly subordinated to the
QSC guarantee.

 

9.                                       Denominations;
Transfer; Exchange

 

The Notes are in registered form without coupons in
denominations of $1,000 and whole multiples of $1,000.  A Holder may transfer or exchange Notes in accordance
with the Indenture.  

 

A-8

 

Upon any transfer or
exchange, the Registrar and the Trustee may require a Holder, among other
things, to furnish appropriate endorsements or transfer documents and to pay
any taxes required by law or permitted by the Indenture.  The Registrar need not register the transfer
of or exchange any Notes selected for redemption (except, in the case of a Note
to be redeemed in part, the portion of the Note not to be redeemed) or transfer
or exchange any Notes for a period of 15 days prior to a selection of
Notes to be redeemed or 15 days before an interest payment date.

 

10.                                 Persons Deemed
Owners

 

The registered Holder of this Note may be treated as
the owner of it for all purposes.

 

11.                                 Unclaimed Money

 

If money for the payment of principal or interest
remains unclaimed for two years, the Paying Agent shall pay the money back to
the Company at its request, or if then held by the Company, shall be discharged
from such trust (unless an abandoned property law designates another Person for
payment thereof).  After any such
payment, Holders entitled to the money must look only to the Company for
payment thereof, and all liability of the Paying Agent with respect to such
money, and all liability of the Company as trustee thereof, shall thereupon
cease.

 

12.                                 Discharge and
Defeasance

 

Subject to certain conditions set forth in the
Indenture, the Company and the Guarantors at any time may terminate some or all
of its obligations under the Indenture, the Notes Guarantees, the Registration
Rights Agreement and the Notes if the Company deposits with the Trustee, cash
in U.S. legal tender or U.S. Government Obligations for the payment of
principal and interest on the Notes to redemption or maturity, as the case may
be.

 

13.                                 Amendment,
Waiver

 

Subject to certain exceptions set forth in the
Indenture, (i) the Indenture, the Notes or the Notes Guarantees may be
amended or supplemented with the written consent of the Holders of at least a
majority in principal amount of the then outstanding Notes (including the February Notes
and any Additional Notes), voting as a group, and (ii) any existing
default or noncompliance with any provision of the Indenture, the Notes or the
Notes Guarantees (other than payment of principal, premium, if any, Additional
Interest, if any, and interest) may be waived with the consent of the Holders
of a majority in principal amount of the then outstanding Notes.  Subject to certain exceptions set forth in
the Indenture, without the consent of any Noteholder, the Company, the
Guarantors and the Trustee may amend or supplement the Indenture, the Notes or
the Note Guarantees, to cure any ambiguity, defect or inconsistency, to provide
for uncertificated Notes in addition to or in place of certificated Notes (provided
that the uncertificated Notes are issued in registered form for purposes of Section 163(f) of
the Code, or in a manner such that the uncertificated Notes are described in Section 163(f)(2)(B) of
the Code), to provide for the assumption of the Company’s obligations to
Holders of Notes in the case of a merger, consolidation or sale of assets, to
release any Guarantor from any of its obligations under its applicable Note
Guarantee or the Indenture (to the extent permitted by the Indenture) to make
any change 

 

A-9

 

that would provide any
additional rights or benefits to the Holders of Notes or that, as determined by
the Board of Directors of the Company in good faith, does not materially
adversely affect the legal rights of any such Holder under the Indenture, the
Notes or the Notes Guarantees, to conform the Indenture to the “Description of
Notes” contained in the offering memorandum relating to the Initial Notes, to
comply with the requirements of the SEC in order to effect or maintain the
qualification of the Indenture under the TIA, to provide assets as collateral
and to add additional guarantees.

 

14.                                 Defaults and
Remedies

 

Under the Indenture (and subject to the terms of the
Indenture), an Event of Default occurs if there is:  (i) default for 30 days in the payment
when due of interest on, or Additional Interest with respect to, the Notes; (ii) default
in payment when due of the principal of or premium, if any, on the Notes
(including the failure to make a payment to purchase Notes tendered pursuant to
a Change of Control Offer or an Asset Sale Offer); (iii) failure by the
Company (A) to comply with the provisions of Sections 4.11 and 5.01 of the
Indenture or (B) for 45 days after receipt of notice from the Trustee or
the Holders of at least 25% in principal amount of the then outstanding Notes
to comply with any other agreement or covenant of the Indenture; (iv) default
under any Debt Instrument under which there may be issued or by which there may
be secured or evidenced Indebtedness of the Company or any of its Restricted
Subsidiaries (other than QCC to the extent that none of QSC, the Company or QCF
have outstanding a Debt Instrument governing Debt Securities under which there
is a similar default as this clause (iv) with respect to QCC that applies
to such default) whether such Indebtedness now exists or is incurred after the
Issue Date, which default: (A) is caused by a failure to pay when due
principal on such Indebtedness at the final maturity thereof; (B) results
in the acceleration of such Indebtedness prior to its express final maturity or
(C) results in the commencement of judicial proceedings to foreclose upon,
or to exercise remedies under applicable law or applicable security documents
to take ownership of or to cause the sale of, the assets securing such
Indebtedness (other than the consensual provision of assets securing
non-recourse Indebtedness), and in each case, the principal amount of such
Indebtedness, together with any other Indebtedness with respect to which an
event described in clause (A), (B) or (C) has occurred and is
continuing, aggregates more than $100.0 million; (v) one or more
final and non-appealable judgments or orders that exceed $100.0 million in the
aggregate (net of amounts covered by insurance or bonded) for the payment of
money have been entered by a court or courts of competent jurisdiction against
QSC, the Company or any of its Restricted Subsidiaries and such judgment or
judgments have not been satisfied, stayed, annulled or rescinded within
60 days of being entered; (vi) QSC, the Company or any Significant
Subsidiary pursuant to or within the meaning of any Bankruptcy Law:  (A) commences a voluntary case, (B) consents
to the entry of an order for relief against it in an involuntary case, (C) consents
to the appointment of a Custodian of it or for all or substantially all of its
assets, or (D) makes a general assignment for the benefit of its
creditors; (vii) a court of competent jurisdiction enters an order or
decree under any Bankruptcy Law that:  (A) is
for relief against QSC, the Company or any Significant Subsidiary as debtor in
an involuntary case, (B) appoints a Custodian of QSC, the Company or any
Significant Subsidiary or a Custodian for all or substantially all of the
assets of the Company or any Significant Subsidiary, or (C) orders the
liquidation of QSC, the Company or any Significant Subsidiary, and the order or
decree remains unstayed and in effect for

 

A-10

 

60 days; or (viii) (A) any
Note Guarantee shall be held in a judicial proceeding before a court of
competent jurisdiction not to be in full force and effect (other than in
accordance with the terms of such Note Guarantee and the Indenture) or is
declared in such a proceeding null and void and unenforceable or found to be
invalid or (B) any Guarantor denies its liability under its Note Guarantee
(other than by reason of release of a Guarantor from its Note Guarantee in
accordance with the terms of the Indenture and the Note Guarantee).

 

Noteholders may not enforce the Indenture or the
Notes except as provided in the Indenture. 
The Trustee may refuse to enforce the Indenture or the Notes unless it
receives indemnity or security reasonably satisfactory to it.  Subject to certain limitations, Holders of a
majority in principal amount of the Notes may direct the Trustee in its
exercise of any trust or power.  The
Trustee may withhold from Noteholders notice of any continuing Default (except
a Default in payment of principal, premium, if any, or interest) if and so long
as a committee of its Trust Officers in good faith determines that withholding
notice is in the interest of the Holders.

 

15.                                 Trustee
Dealings with the Company

 

Subject to certain limitations imposed by the TIA,
the Trustee under the Indenture, in its individual or any other capacity, may become
the owner or pledgee of Notes and may otherwise deal with and collect
obligations owed to it by the Company or its Affiliates and may otherwise deal
with the Company or its Affiliates with the same rights it would have if it
were not Trustee.

 

16.                                 No Personal
Liability of Directors, Officers, Employees and Stockholders

 

No past, present or future director, officer,
employee, incorporator, or stockholder of the Company, as such, shall have any
liability for any obligations of the Company under the Notes, the Indenture or
for any claim based on, in respect of, or by reason of, such obligations or
their creation.  No past, present or
future director, officer, employee, incorporator, or stockholder of any of the
Guarantors, as such, shall have any liability for any obligations of the
Guarantors under the Notes Guarantees, the Indenture or for any claim based on,
in respect of, or by reason of, such obligations or their creation.  Each holder of Notes and Notes Guarantees by
accepting a Note and a Note Guarantee waives and releases all such liabilities.  The waiver and release are part of the
consideration for issuance of the Notes and the Notes Guarantees.  Such waiver may not be effective to waive
liabilities under the federal securities laws and it is the view of the SEC
that such a waiver is against public policy.

 

17.                                 Governing Law

 

THE NOTES SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAWS OF THE STATE OF NEW YORK BUT WITHOUT GIVING EFFECT TO APPLICABLE
PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS
OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

 

A-11

 

18.                                 Authentication

 

This Note shall not be valid until an authorized
signatory of the Trustee (or an authenticating agent) manually signs the
certificate of authentication on the other side of this Note.

 

19.                                 Abbreviations

 

Customary abbreviations may be used in the name of a
Noteholder or an assignee, such as TEN COM (=tenants in common), TEN ENT
(=tenants by the entireties), JT TEN (=joint tenants with rights of survivorship
and not as tenants in common), CUST (=custodian), and U/G/M/A (=Uniform Gift to
Minors Act).

 

20.                                 CUSIP Numbers

 

Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures the Company has caused
CUSIP numbers to be printed on the Notes and has directed the Trustee to use
CUSIP numbers in notices of redemption as a convenience to Noteholders.  No representation is made as to the accuracy
of such numbers either as printed on the Notes or as contained in any notice of
redemption and reliance may be placed only on the other identification numbers
placed thereon.

 

The Company will furnish to any Noteholder upon written request and
without charge to the Noteholder a copy of the Indenture which has in it the
text of this Note in larger type. 
Requests may be made to:

 

QWEST COMMUNICATIONS INTERNATIONAL INC.

1801 California Street

Denver, Colorado 80202

Attention of Secretary

 

A-12

 

ASSIGNMENT
FORM

 

To assign this Note, fill in
the form below:

 

I or we assign and transfer
this Note to

 

	
   

  
	
  (Print or type assignee’s name, address and zip code)

  
	
   

  
	
   

  
	
  (Insert assignee’s soc. sec. or tax I.D. No.)

  

 

and irrevocably
appoint ________________________ agent
to transfer this Note on the books of the Company.  The agent may substitute another to act for
him.

 

	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  

 

	
  Signature
  Guarantee:

  	
   

  
	
   

  	
  (Signature
  must be guaranteed by a participant in a recognized signature guarantee
  medallion program)

  

 

	
   

  
	
  Sign exactly as your name appears on the other side of this Note.

  

 

A-13

 

EXHIBIT
B

 

CERTIFICATE
TO BE DELIVERED UPON EXCHANGE OR

REGISTRATION
OF TRANSFER RESTRICTED NOTES

 

Reference is hereby made to
that certain indenture dated February 5, 2004 (the “Base Indenture”)
among Qwest Communications International Inc. (the “Company”), the
Guarantors (as defined therein) and The Bank of New York Trust Company, N.A.
(as successor in interest to J.P. Morgan Trust Company, National Association),
as amended and supplemented by the First Supplemental Indenture among the
Company, the Guarantors and U.S. Bank National Association (the “Trustee”)
dated June 17, 2005 (the “First Supplemental Indenture”), the
Second Supplemental Indenture among the Company, the Guarantors and the Trustee
dated June 23, 2005 (the “Second Supplemental Indenture”), the
Third Supplemental Indenture among the Company, the Guarantors and the Trustee
dated September 17, 2009 (the “Third Supplemental Indenture”), and
the Fourth Supplemental Indenture among the Company, the Guarantors and the
Trustee dated January 12, 2010 (the “Fourth Supplemental Indenture,”
and together with the Base Indenture, the First Supplemental Indenture, the
Second Supplemental Indenture, and the Third Supplemental Indenture, the “Indenture”).  Capitalized terms used but not defined herein
shall have the meanings set forth in the Indenture.

 

This certificate relates to
$                
principal amount of Notes held in (check applicable space)
         book-entry or
           definitive form by
the undersigned.

 

The undersigned (check one
box below):

 

o                                    has requested
the Trustee by written order to deliver in exchange for its beneficial interest
in the Global Note held by the Depository a Note or Notes in definitive,
registered form of authorized denominations and an aggregate principal amount equal
to its beneficial interest in such Global Note (or the portion thereof
indicated above);

 

o                                    has requested
the Trustee by written order to exchange or register the transfer of a Note or
Notes.

 

In connection with any
transfer of any of the Notes evidenced by this certificate occurring prior to
the expiration of the holding periods referred to in Rule 144 under the
Securities Act of 1933, as amended, the undersigned confirms that such Notes
are being transferred in accordance with its terms:

 

CHECK
ONE BOX BELOW:

 

(1)                                  o                                    to the Company
or any of its subsidiaries; or

 

(2)                                  o                                    pursuant to an
effective registration statement under the Securities Act of 1933, as amended;
or

 

(3)                                  o                                    inside the
United States to a “qualified institutional buyer” (as defined in Rule 144A
under the Securities Act of 1933, as amended) that purchases for its own
account or for the account of a qualified institutional buyer to whom notice is
given that such transfer is being made in reliance on Rule 144A under the
Securities

 

B-1

 

Act of 1933, as amended, in each case pursuant to and in compliance
with Rule 144A thereunder; or

 

(4)                                  o                                    outside the
United States in an offshore transaction within the meaning of Regulation S
under the Securities Act of 1933, as amended, in compliance with Rule 904
thereunder; or

 

(5)                                  o                                    pursuant to
another available exemption from registration provided by Rule 144 under
the Securities Act of 1933, as amended; or

 

(6)                                  o                                    in accordance
with another exemption from the registration requirements of the Securities Act
of 1933, as amended.

 

Unless one of the boxes is
checked, the Trustee will refuse to register any of the Notes evidenced by this
certificate in the name of any person other than the registered holder thereof;
provided, however,
that if box (4), (5) or (6) is checked, the Trustee may require,
prior to registering any such transfer of the Notes, such legal opinions,
certifications and other information as the Company has reasonably requested to
confirm that such transfer is being made pursuant to an exemption from, or in a
transaction not subject to, the registration requirements of the Securities Act
of 1933, as amended, such as the exemption provided by Rule 144 thereunder.

 

	
   

  	
   

  
	
   

  	
  Signature

  

 

 

	
  Signature
  Guarantee:

  	
   

  
	
   

  	
  (Signature
  must be guaranteed by a participant in a recognized signature guarantee
  medallion program)

  

 

TO
BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

 

The undersigned represents and warrants that it is
purchasing this Note for its own account or an account with respect to which it
exercises sole investment discretion and that it and any such account is a “qualified
institutional buyer” within the meaning of Rule 144A under the Securities
Act of 1933, as amended (“Rule 144A”), and is aware that the sale to it is
being made in reliance on Rule 144A and acknowledges that it has received
such information regarding the Company as the undersigned has requested
pursuant to Rule 144A or has determined not to request such information
and that it is aware that the transferor is relying upon the undersigned’s
foregoing representations in order to claim the exemption from registration
provided by Rule 144A.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTICE:  To
  be executed by an executive officer

  

 

B-2

 

SCHEDULE
OF INCREASES OR DECREASES IN GLOBAL NOTES

 

The following increases or decreases in this Global
Note have been made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease

  in Principal

  Amount of this

  Global Note

  	
   

  	
  Amount of increase

  in Principal

  Amount of

  this Global Note

  	
   

  	
  Principal

  amount of this

  Global Note following

  such decrease

  or increase

  	
   

  	
  Signature of authorized

  signatory

  of Trustee

  or Notes Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

B-3

 

OPTION
OF HOLDER TO ELECT PURCHASE

 

If you want to elect to have this Note purchased by
the Company pursuant to Section 4.09, or 4.11 of the Indenture, check the
box:

 

	
  o   4.09
  Asset Sale

  	
   

  	
  o   4.11
  Change of Control Offering

  

 

If you want to elect to have only part of this Note
purchased by the Company pursuant to Section 4.09 or 4.11 of the
Indenture, state the amount:  $                    .

 

	
  Date:

  	
   

  	
   

  	
  Your
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  (Sign
  exactly as your name appears on the other side of the Note)

  

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tax I.D. number

  

 

 

	
  Signature
  Guarantee:

  	
   

  
	
   

  	
  (Signature must be
  guaranteed by a participant in a recognized signature guarantee medallion program)

  

 

B-4

 

EXHIBIT C

 

[FORM OF
CERTIFICATE TO BE DELIVERED IN CONNECTION

WITH
TRANSFERS PURSUANT TO REGULATION S]

 

Qwest
Communications International Inc.

1801
California Street

Denver,
Colorado  80202

 

Attention:  Chief Financial Officer

 

Re:          Qwest Communications International
Inc. (the “Company”)

7.125% Senior Notes due 2018 (the “Notes”)

 

Dear
Ladies and Gentlemen:

 

This letter relates to U.S.
$                          
principal amount of Notes represented by a Note (the “Legended Note”) which
bears a legend outlining restrictions upon transfer of such Legended Note.  Pursuant to Section 2.01 of the
Indenture dated as of February 5, 2004, as amended and supplemented by a
First Supplemental Indenture dated as of June 17, 2005, a Second
Supplemental Indenture dated as of June 23, 2005, a Third Supplemental
Indenture dated as of September 17,
2009, and a Fourth Supplemental Indenture dated as of January 12, 2010 (the “Indenture”)
relating to the Notes, we hereby certify that we are (or we will hold such
Notes on behalf of) a person outside the United States to whom the Notes could
be transferred in accordance with Rule 904 of Regulation S promulgated
under the U.S. Securities Act of 1933.  Accordingly,
you are hereby requested to exchange the legended certificate for an unlegended
certificate representing an identical principal amount at maturity of Notes,
all in the manner provided for in the Indenture.

 

You and the Company are entitled to rely upon this
letter and are irrevocably authorized to produce this letter or a copy hereof
to any interested party in any administrative or legal proceedings or official
inquiry with respect to the matters covered hereby.  Terms used in this certificate have the
meanings set forth in Regulation S.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Name of Holder]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Authorized Signature

  

 

C-1

 

EXHIBIT D

 

[FORM OF
GUARANTEE]

 

Each undersigned Guarantor (as defined in the
Indenture referred to in the Note upon which this notation is endorsed and each
referred to as the “Guarantor,” which term includes any successor person under
the Indenture) hereby unconditionally and irrevocably, jointly and severally,
guarantees as a primary obligor and not merely as a surety (such guarantee to
be referred to herein as the “Guarantee”), to each of the Holders and to the
Trustee and their respective successors and assigns that (i) the principal
of and interest on the Notes will be promptly paid in full when due, subject to
any applicable grace period, whether at maturity, by acceleration or otherwise,
and interest on the overdue principal, if any, and interest on any interest, if
any, to the extent lawful, of the Notes and all other obligations of the
Company to the Holders or the Trustee under the Indenture or thereunder will be
promptly paid in full or performed, all in accordance with the terms under the
Indenture and thereof; and (ii) in case of any extension of time of payment
or renewal of any of the Notes or of any such other obligations, the same will
be promptly paid in full when due or performed in accordance with the terms of
the extension or renewal, subject to any applicable grace period, whether at
maturity, by acceleration or otherwise, subject, however, in the case of
clauses (i) and (ii) above, to the limitations set forth in Section 12.02
of the Indenture.  The obligations of the
Guarantors to the Holders of Notes and to the Trustee pursuant to the Guarantee
and the Indenture are expressly set forth in Article XII of the Indenture
and reference is hereby made to the Indenture for the precise terms of the
Guarantee.  Each Holder of a Note, by accepting
the same, (a) agrees to and shall be bound by such provisions and (b) appoints
the Trustee attorney-in-fact of such Holder for such purpose.

 

No stockholder, officer, director or incorporator,
as such, past, present or future, of the Guarantor shall have any liability
under the Guarantee by reason of his or its status as such stockholder,
officer, director or incorporator.

 

This Guarantee shall not be valid or obligatory for
any purpose until the certificate of authentication on the Notes upon which
this Guarantee is noted shall have been executed by the Trustee under the
Indenture by the manual signature of one of its authorized officers.

 

D-1

 

IN WITNESS WHEREOF, each of the undersigned
Guarantors has caused this Guarantee to be signed by its duly authorized officer.

 

	
   

  	
  [NAME
  OF GUARANTOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

D-2Exhibit
10.1

 

EXECUTION VERSION

	
   

  

 

 

REGISTRATION RIGHTS AGREEMENT

 

 

Dated January 12, 2010

 

 

among

 

 

QWEST COMMUNICATIONS INTERNATIONAL INC.

as Issuer,

THE GUARANTORS NAMED HEREIN,

 

 

and

 

 

DEUTSCHE BANK SECURITIES INC.,

 

 

As Representative of the Initial Purchasers

 

	
   

  

 

 

REGISTRATION RIGHTS AGREEMENT

 

This Registration Rights Agreement (this “Agreement”) is dated as of January 12,
2010, among QWEST COMMUNICATIONS INTERNATIONAL INC., a Colorado corporation
(the “Issuer” or the “Company”), QWEST SERVICES CORPORATION,
a Colorado corporation (“QSC”), and
QWEST CAPITAL FUNDING, INC., a Colorado corporation (“QCF”
and together with QSC, the “Guarantors”),
on the one hand, and the several Initial Purchasers named in Schedule A to
the Purchase Agreement as defined below (each, an “Initial
Purchaser” and collectively, the “Initial
Purchasers”), on the other hand, who have each agreed to
purchase, severally and not jointly, pursuant to the Purchase Agreement a
specified amount of newly issued 7.125% Notes due 2018 (the “Notes”).

 

This Agreement is made pursuant to the Purchase
Agreement, dated as of January 7, 2010 (the “Purchase
Agreement”), by and among the Issuer, the Guarantors and the
Initial Purchasers (i) for the benefit of the Issuer, the Guarantors and
the Initial Purchasers and (ii) for the benefit of the Holders (including
the Initial Purchasers).  As of the date
hereof, the Issuer’s obligations under the Notes will be fully and
unconditionally guaranteed (the “Guarantees”)
by each of the Guarantors on the terms set forth in the Indenture.  References herein to the “Securities” refer to the Notes and
the Guarantees, collectively and, unless the context otherwise requires, any
reference herein to a “Security,” an “Exchange Security” or a “Registrable
Security” shall include a reference to the related Guarantees.  In order to induce the Initial Purchasers to
purchase the Securities, the Issuer and the Guarantors have agreed to provide
the registration rights set forth in this Agreement.  The execution and delivery of this Agreement
is a condition to the obligations of the Initial Purchasers set forth in Section 5
of the Purchase Agreement.  Capitalized
terms used herein and not otherwise defined shall have the meaning assigned to
them in the Purchase Agreement.

 

In consideration of the foregoing, the parties
hereto agree as follows for the benefit of each other and for the equal and
ratable benefit of the Holders:

 

1.                                      Definitions.

 

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

 

“1933 Act”
shall mean the Securities Act of 1933, as amended, or any successor federal
statute, and the rules and regulations of the SEC thereunder, all as the
same shall be in effect from time to time.

 

“1934 Act”
shall mean the Securities Exchange Act of 1934, as amended, or any successor
federal statute, and the rules and regulations of the SEC thereunder, all
as the same shall be in effect from time to time.

 

“Additional Interest”
shall have the meaning set forth in Section 2(d) hereof.

 

“Affiliate”
shall mean with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under common control with, such Person; for
purposes of 

 

 

this definition, “control”
shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management and policies of a Person, whether through
the ownership of voting securities or otherwise.

 

“Agreement”
shall have the meaning set forth in the preamble.

 

“Broker-Dealer
Representative” shall mean Deutsche Bank Securities Inc.

 

“Business Day”
shall mean any day that is not a Saturday, Sunday, or other day on which
commercial banks in New York City are authorized or required by law to remain
closed.

 

“Closing Date”
shall have the meaning set forth in the Purchase Agreement.

 

“Company”
shall have the meaning set forth in the preamble and shall also include the Company’s
successors and assigns.

 

“Exchange Date”
shall have the meaning set forth in Section 2(a)(ii) hereof.

 

“Exchange Offer”
shall mean the exchange offer by the Issuer of Exchange Securities for Registrable
Securities pursuant to Section 2(a) hereof.

 

“Exchange Offer
Registration” shall mean a registration under the 1933 Act effected
pursuant to Section 2(a) hereof.

 

“Exchange Offer
Registration Statement” shall mean an exchange offer registration
statement on Form S-4 (or, if applicable, on another appropriate form) and
all amendments and supplements to such registration statement, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

 

“Exchange Period”
shall have the meaning set forth in Section 2(a) hereof.

 

“Exchange Securities”
shall mean securities issued by the Issuer under the Indenture containing terms
identical to the Securities (except that the Exchange Securities will not
contain restrictions on transfer and provisions relating to Additional
Interest) that will be offered to Holders of Securities in exchange for
Securities pursuant to the Exchange Offer.

 

“Freely Tradable”
shall mean, with respect to a Security, a Security that at any time of
determination, if it were not held by an Affiliate of the Company, (i) may
be resold to the public in accordance with Rule 144 under the 1933 Act or
any successor provision thereof (“Rule 144”)
without regard to volume, manner of sale, or any other restrictions contained
in Rule 144 (other than the holding period requirement in paragraph (d)(1)(ii) of
Rule 144 so long as such holding period requirement is satisfied at such
time of determination), (ii) does not bear a restrictive legend relating
to the 1933 Act that has not been deemed removed pursuant to the terms of the
Indenture, and (iii) for which the Trustee shall have directed the
Depository (as defined in the Indenture) to transfer the beneficial interest in
the Global Note representing such 

 

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Security to a security
position bearing an unrestricted CUSIP and for which the Depository shall have
effected such transfer.

 

“Guarantees”
shall have the meaning set forth in the preamble.

 

“Guarantors”
shall have the meaning set forth in the preamble.

 

“Holder”
shall mean a holder of Registrable Securities, for so long as such holder owns
any Registrable Securities, and each of such holder’s successors, assigns and
direct and indirect transferees who become registered owners of Registrable
Securities under the Indenture or who become beneficial owners of Registrable
Securities, so long as in the case of beneficial owners, such owners have so
notified the Issuer in writing; provided that for purposes of Sections
4 and 5 of this Agreement, the term “Holder” shall include
Participating Broker-Dealers.

 

“Indenture”
shall mean the Indenture relating to the Securities dated as of February 5,
2004, among the Company, the Guarantors and The Bank of New York Trust Company,
N.A. (as successor in interest to J.P. Morgan Trust Company, National
Association); as supplemented by a first supplemental indenture, dated as of June 17,
2005, among the Company, the Guarantors and U.S. Bank National Association, as
Trustee, a second supplemental indenture, dated as of June 23, 2005 among
the Company, the Guarantors and the Trustee, a third supplemental indenture,
dated as of September 17, 2009 among the Company, the Guarantors and the
Trustee, and a fourth supplemental indenture to be entered into among the
Company, the Guarantors and the Trustee on the Closing Date.

 

“Initial Purchaser”
shall have the meaning set forth in the preamble.

 

“Issuer”
shall have the meaning set forth in the preamble and shall also include the
Issuer’s successors and assigns.

 

“Majority Holders”
shall mean the Holders of a majority of the aggregate principal amount of
outstanding Registrable Securities; provided, however, that
whenever the consent or approval of Holders of a specified percentage of Registrable
Securities is required hereunder, Registrable Securities held by the Issuer or
any of its Affiliates shall not be counted in determining whether such consent
or approval was given by the Holders of such required percentage or amount.

 

“Participant”
shall have the meaning set forth in Section 5 hereof.

 

“Participating
Broker-Dealer” shall have the meaning set forth in Section 4(a) hereof.

 

“Person”
shall be construed broadly and shall include, without limitation, an individual,
a partnership, a corporation, an association, a joint stock company, a limited
liability company, a trust, a joint venture, an unincorporated organization,
and a governmental entity or any department, agency, or political subdivision
thereof.

 

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

 

“Purchase Agreement”
shall have the meaning set forth in the preamble.

 

“Registrable Securities”
shall mean the Securities; provided, however, that the Securities
shall cease to be Registrable Securities (i) when, in the case of a Holder
of such Securities who was entitled to participate in the Exchange Offer, an
Exchange Offer Registration Statement with respect to such Securities has been
declared effective under the 1933 Act and either (a) such Securities have
been exchanged pursuant to the Exchange Offer for Exchange Securities or (b) such
Securities were not tendered by the Holder thereof in the Exchange Offer, (ii) when
a Shelf Registration Statement with respect to such Securities has become
effective under the 1933 Act and such Securities have been disposed of pursuant
to such Shelf Registration Statement, (iii) when such Securities are
Freely Tradable, or (iv) when such Securities have ceased to be outstanding.

 

“Registration Default”
shall have the meaning set forth in Section 2(d) hereof.

 

“Registration Expenses”
shall mean any and all expenses incident to performance of or compliance by the
Issuer and the Guarantors with this Agreement, including, without limitation:  (i) all SEC, New York Stock Exchange, or
Financial Industry Regulatory Authority (“FINRA”)
registration and filing fees, (ii) all fees and expenses incurred in
connection with compliance with state securities or blue sky laws (including
reasonable fees and disbursements of one counsel for all underwriters or
Holders as a group in connection with blue sky qualification of any of the Exchange
Securities or Registrable Securities) within the United States (x) where
the Holders are located, in the case of the Exchange Securities, or (y) as
provided in Section 3(d) hereof, in the case of Registrable
Securities to be sold by a Holder pursuant to a Shelf Registration Statement, (iii) all
expenses of any Persons in preparing or assisting in preparing, word
processing, printing, and distributing any Registration Statement, any
Prospectus, any amendments or supplements thereto and other documents relating
to the performance of and compliance with this Agreement, (iv) all rating
agency fees, (v) all fees and disbursements relating to the qualification
of the Indenture under applicable securities laws, (vi) the fees and disbursements
of the Trustee and its counsel, (vii) the fees and disbursements of
counsel for the Issuer and the Guarantors and, in the case of a Shelf
Registration Statement, the fees and disbursements of one counsel for the
Holders (which counsel shall be selected by the Majority Holders), and (viii) the
fees and disbursements of the independent public accountants of the Issuer and
the Guarantors, including the expenses of any special audits, agreed-upon
procedures, or “cold comfort” letters required by or incident to such
performance and compliance, but excluding fees and expenses of counsel to the
underwriters (other than fees and expenses set forth in clause (ii) above)
or the Holders and underwriting discounts and commissions and out-of-pocket
expenses incurred by the Holders and transfer taxes, if any, relating to the
sale or disposition of Registrable Securities by a Holder.

 

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“Registration Statement”
shall mean any registration statement of the Issuer that covers any of the
Exchange Securities or Registrable Securities pursuant to the provisions of
this Agreement and all amendments and supplements to any such Registration
Statement, including post-effective amendments, in each case including the
Prospectus contained therein, all exhibits thereto, and all material
incorporated by reference therein.

 

“Registration Trigger Date”
shall mean the fifth Business Day following the one-year anniversary of the
last original issue date of the Securities.

 

“SEC” shall
mean the Securities and Exchange Commission.

 

“Securities”
shall have the meaning set forth in the preamble.

 

“Shelf Effectiveness Period” shall have the meaning set forth in Section 2(b) hereof.

 

“Shelf Registration”
shall mean a registration effected pursuant to Section 2(b) hereof.

 

“Shelf Registration
Effectiveness Date” shall have the meaning set forth in Section 2(b) hereof.

 

“Shelf Registration
Statement” shall mean a “shelf” registration statement of the
Issuer pursuant to the provisions of Section 2(b) of this Agreement
that covers at effectiveness all or a portion of the Registrable Securities
(other than Registrable Securities the Holders of which have not complied with
their obligations under Section 2(f) of this Agreement or have
elected not to have their Registrable Securities included in the Shelf
Registration Statement) on an appropriate form under Rule 415 under the 1933
Act, or any similar rule that may be adopted by the SEC, and all
amendments and supplements to such registration statement, including
post-effective amendments, in each case including the Prospectus contained
therein, all exhibits thereto and all material incorporated by reference
therein.

 

“Shelf Request”
shall have the meaning set forth in Section 2(b) hereof.

 

“TIA” shall
have the meaning set forth in Section 3(l) hereof.

 

“Trustee”
shall mean the trustee with respect to the Securities under the Indenture.

 

“Underwriters”
shall have the meaning set forth in Section 3 hereof.

 

“Underwritten Offering”
shall mean a registration in which Registrable Securities are sold to an
Underwriter for reoffering to the public.

 

2.                                      Registration Under the 1933 Act.

 

(a)                                  To the extent
not prohibited by any applicable law or applicable interpretation of the Staff
of the SEC, the Issuer and Guarantors shall file, with respect to any
Securities 

 

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that on the Registration Trigger Date are
Registrable Securities, an Exchange Offer Registration Statement covering the
offer by the Issuer and the Guarantors, to the Holders, to exchange all of the
Registrable Securities for Exchange Securities in a like aggregate principal
amount and to use their commercially reasonable efforts to have such
Registration Statement remain effective until the closing of the Exchange
Offer; provided, however, that if requested pursuant to Section 4
hereof, the Issuer and Guarantors will use their commercially reasonable
efforts to have such Registration Statement remain effective for 90 days after
the date on which such Registration Statement is declared effective for use by
one or more Participating Broker-Dealers. 
The Issuer and the Guarantors shall commence the Exchange Offer as
promptly as practicable after the Exchange Offer Registration Statement has
been declared effective by the SEC, and the Issuer shall use its commercially
reasonable efforts to have the Exchange Offer consummated not later than 45
days after the date on which the Exchange Offer Registration Statement is
declared effective (such 45-day period being the “Exchange
Period”).

 

The Issuer and the Guarantors shall commence the
Exchange Offer by mailing the related exchange offer Prospectus and
accompanying documents to each Holder stating, in addition to such other
disclosures as are required by applicable law:

 

(i)                                     that the
Exchange Offer is being made pursuant to this Registration Rights Agreement and
that all Registrable Securities validly tendered will be accepted for exchange;

 

(ii)                                  the date of
acceptance for exchange (which shall be a date at least 20 business days (or
longer if required by applicable law) from the date such notice is mailed) (the
“Exchange Date”);

 

(iii)                               that any
Registrable Security not tendered by a Holder who was eligible to participate
in the Exchange Offer will remain outstanding and continue to accrue interest,
but will not retain any rights under this Registration Rights Agreement;

 

(iv)                              that Holders
electing to have a Registrable Security exchanged pursuant to the Exchange
Offer will be required to surrender such Registrable Security, together with
the enclosed letters of transmittal, to the institution and at the address
(located in the Borough of Manhattan, The City of New York) specified in the
notice prior to the close of business on the Exchange Date; and

 

(v)                                 that Holders
will be entitled to withdraw their election, not later than the close of
business, New York City time, on the Exchange Date, by sending to the institution
and at the address (located in the Borough of Manhattan, The City of New York)
specified in the notice, a facsimile transmission or letter setting forth the
name of such Holder, the principal amount of Registrable Securities delivered
for exchange, and a statement that such Holder is withdrawing his election to
have such Securities exchanged.

 

As soon as practicable after the Exchange Date, the
Issuer and the Guarantors shall:

 

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(vi)                              accept for exchange
Registrable Securities or portions thereof validly tendered and not properly
withdrawn pursuant to the Exchange Offer; and

 

(vii)                           deliver, or cause to be
delivered, to the Trustee for cancellation all Registrable Securities or portions
thereof so accepted for exchange by the Issuer and issue, and cause the Trustee
to promptly authenticate and mail to each Holder, an Exchange Security equal in
principal amount to the principal amount of the Registrable Securities surrendered
by such Holder; provided, however, that, in the case of any
Registrable Securities held in global form by a depositary, authentication and
delivery to such depositary of one or more Exchange Securities in global form
in an equivalent principal amount thereto for the account of such Holders in
accordance with the Indenture shall satisfy such authentication and delivery
requirement.

 

Each Holder (including, without limitation, each
Participating Broker-Dealer) who participates in the Exchange Offer will be
required to represent to the Issuer, in writing (which may be contained in the
applicable letter of transmittal), that: (1) any Exchange Securities
acquired in exchange for Registrable Securities tendered are being acquired in
the ordinary course of business of the Person receiving such Exchange
Securities, whether or not such recipient is a Holder of Registrable
Securities, (2) neither such Holder nor, to the actual knowledge of such
Holder, any other Person receiving Exchange Securities from such Holder has an
arrangement or understanding with any Person to participate in the distribution
of the Exchange Securities in violation of the provisions of the 1933 Act, (3) the
Holder is not an Affiliate of the Issuer or if it is an Affiliate, it will
comply with the registration and prospectus delivery requirements of the 1933
Act to the extent applicable, (4) if such Holder is not a Participating
Broker-Dealer, it has not engaged in, and does not intend to engage in, the
distribution of Exchange Securities, (5) if such Holder is a Participating
Broker-Dealer, such Holder acquired the Registrable Securities as a result of
market-making activities or other trading activities, it will deliver a
prospectus in connection with any resale of the Exchange Securities and it will
comply with the applicable provisions of the 1933 Act with respect to resale of
any Exchange Securities, and (6) such Holder has full power and authority
to transfer the Registrable Securities in exchange for the Exchange Securities.

 

The Issuer and the Guarantors shall comply with the
applicable requirements of the 1933 Act, the 1934 Act, and other applicable
laws and regulations in connection with the Exchange Offer.  The Exchange Offer shall not be subject to
any conditions, other than (1) that the Exchange Offer does not violate
applicable law or any applicable interpretation of the Staff of the SEC, (2) that
no action or proceeding shall have been instituted or threatened in any court
or by any governmental agency with respect to the Exchange Offer and no material
adverse development shall have occurred with respect to the Issuer or any
Guarantor, (3) that all governmental approvals shall have been obtained
that the Issuer and the Guarantors deem necessary for the consummation of the
Exchange Offer, (4) that the conditions precedent to the Issuer’s and the
Guarantors’ obligations under this Agreement shall have been fulfilled, and (5) such
other conditions as shall be deemed necessary or appropriate by the Issuer and
the Guarantors in their reasonable judgment.

 

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(b)                                 In the event
that

 

(i)                                     the Issuer is
required to consummate an Exchange Offer pursuant to Section 2(a) hereof
but determines that the Exchange Offer Registration provided for in Section 2(a) above
is not available or may not be consummated as soon as practicable after the
Exchange Date because it would violate applicable law or the applicable
interpretations of the Staff of the SEC,

 

(ii)                                  the Issuer is
required to consummate an Exchange Offer pursuant to Section 2(a) hereof
but the Exchange Offer Registration Statement is not declared effective by the
Registration Trigger Date,

 

(iii)                               any Holder of
Registrable Securities notifies the Issuer after the commencement of the
Exchange Offer that due to a change in applicable law or SEC policy it is not
entitled to participate in the Exchange Offer,

 

(iv)                              any Holder that
participates in the Exchange Offer (and tenders its Registrable Securities
prior to the expiration thereof) does not receive Exchange Securities on the
date of the exchange that may be sold without restriction under state and
federal securities laws (other than due solely to the status of such Holder as
an Affiliate of the Issuer or as a Participating Broker-Dealer), or

 

(v)                                 the Issuer
receives a written request (a “Shelf Request”)
from any Initial Purchaser representing that it holds Registrable Securities
that, in the opinion of counsel for the Initial Purchasers, are not Freely
Tradable on the Registration Trigger Date,

 

then the Issuer and the Guarantors shall as
promptly as practicable file a Shelf Registration Statement providing for the
sale of all of the Registrable Securities by the Holders thereof and use their
commercially reasonable efforts to have such Shelf Registration Statement become
effective by the 90th day following (A) the date of determination, in the
case of (i) above, (B) the Registration Trigger Date, in the case of (ii) above,
(C) the date of notification, in the case of (iii) above, (D) the
Exchange Date, in the case of (iv) above, and (E) the date the
Company receives the Shelf Request, in the case of (v) above (each of such
dates, as applicable, the “Shelf Registration Effectiveness
Date”).

 

In the event the Issuer and the Guarantors are
required to file a Shelf Registration Statement solely as a result of the
matters referred to in clauses (iii) or (v) of the preceding sentence,
the Issuer and the Guarantors shall file and use their commercially reasonable
efforts to have declared effective by the SEC both an Exchange Offer
Registration Statement pursuant to Section 2(a) with respect
to all Registrable Securities and a Shelf Registration Statement (which may be
a combined Registration Statement with the Exchange Offer Registration
Statement) with respect to offers and sales of Registrable Securities held by
such other Holders or the Initial Purchasers, as applicable, after completion
of the Exchange Offer.  The Issuer and
the Guarantors agree, except as set forth herein, to use their commercially
reasonable efforts to keep the Shelf Registration Statement continuously
effective until the earlier of (i) two years after the Closing Date or (ii) the
date on which all of the Registrable Securities covered by the Shelf Registration
Statement have been sold pursuant to the Shelf Registration Statement or otherwise
no 

 

8

 

longer constitute
Registrable Securities (the “Shelf Effectiveness Period”).  The Issuer and the Guarantors further agree
to supplement or amend the Shelf Registration Statement if required by the
rules, regulations, or instructions applicable to the registration form used by
the Issuer for such Shelf Registration Statement or by the 1933 Act or by any
other rules and regulations thereunder for shelf registration or if
reasonably requested by a Holder of Registrable Securities listed in the Shelf
Registration Statement and the related Prospectus with respect to information
relating to such Holder, and to use their commercially reasonable efforts to
cause any such amendment to become effective and such Shelf Registration
Statement to become usable as soon as thereafter practicable.  The Issuer and the Guarantors agree to
furnish to the Holders of Registrable Securities listed in the Shelf
Registration Statement and the related Prospectus, upon request, copies of any
such supplement or amendment promptly after its being used or filed with the
SEC.  Notwithstanding the foregoing, the
Issuer and the Guarantors shall not be required to file more than one
post-effective amendment to the Shelf Registration Statement in any fiscal quarter,
such timing to be determined in the reasonable discretion of the Issuer, to add
one or more Holders to the “Selling Securityholders” table of the Shelf
Registration Statement or to update any information in such table.  Notwithstanding anything to the contrary
contained herein, if any exchange offer is consummated after the Exchange Date,
any obligations of the Issuer and the Guarantors arising as a result of clause (ii) above
shall terminate and such exchange offer shall be deemed an Exchange Offer
pursuant to Section 2(a).

 

(c)                                  The Issuer and
the Guarantors shall pay all Registration Expenses in connection with the
registration pursuant to Section 2(a) or Section 2(b).  Each Holder shall pay all underwriting discounts
and commissions and transfer taxes, if any, relating to the registration of
such Holder’s Registrable Securities pursuant to the Exchange Offer
Registration Statement or the Shelf Registration Statement.

 

(d)                                 An Exchange
Offer Registration Statement pursuant to Section 2(a) hereof
or a Shelf Registration Statement pursuant to Section 2(b) hereof
will not be deemed to have become effective unless it has been declared
effective by the SEC or, in the case of a Shelf Registration Statement, is
automatically effective upon filing with the SEC as provided by Rule 462
under the Securities Act; provided, however, that, if, after it
has been declared effective, the offering of Registrable Securities pursuant to
a Shelf Registration Statement is interfered with by any stop order, injunction
or other order or requirement of the SEC or any other governmental agency or
court, such Registration Statement will be deemed not to be effective during
the period of such interference until the offering of Registrable Securities
pursuant to such Registration Statement may legally resume.

 

As provided for in the Indenture, the annual
interest rate on the Registrable Securities will be increased (the “Additional Interest”) under the following
conditions:

 

subject
to Sections 2(f) and 2(g), if (i) an Exchange Offer
Registration Statement is required to be filed pursuant to Section 2(a) hereof
and (A) the Exchange Offer Registration Statement has not been declared
effective by the SEC on or prior to the Registration Trigger Date (and the
Shelf Registration Statement has not become effective), or (B) the
Exchange Offer Registration Statement has been declared effective by the SEC
but the Issuer has not exchanged Exchange Securities for all Registrable 

 

9

 

Securities validly tendered in accordance with the terms of the Exchange
Offer on or prior to the end of the Exchange Period or (ii) if a Shelf
Registration Statement is required pursuant to Section 2(b) hereof
and such Shelf Registration Statement (A) does not become effective on or
prior to the Shelf Registration Effectiveness Date, or (B) is filed and
becomes effective but thereafter ceases to be effective or usable during the
Shelf Effectiveness Period (1) as a result of an order suspending the
effectiveness of the Shelf Registration Statement or otherwise, or (2) if
related to the events or circumstances set forth in Section 2(g) below,
for more than 60 days (whether or not consecutive) in any 12-month period (each
such event referred to in clauses (i) and (ii), a “Registration
Default”), then Additional Interest shall accrue on the
principal amount of the Registrable Securities at a rate of 0.25% per annum commencing
(1) on the Registration Trigger Date, in the case of (i)(A) above, (2) at
the end of the Exchange Period, in the case of (i)(B) above, (3) on
the Shelf Registration Effectiveness Date, in the case of (ii)(A) above, (4) on
the day such Shelf Registration Statement ceases to be effective, in the case
of (ii)(B)(1) above, or (5) on the 61st day the Prospectus ceases to
be usable for resales, in the case of (ii)(B)(2) above, and such Additional
Interest rate shall continue to, but excluding, the earlier of (1) the
date on which such Registration Default has been cured as set forth below or (2) the
date that is two years after the Closing Date (it being understood and agreed
that, in the case of a Registration Default under clause (i)(A) or (i)(B) above,
no Additional Interest shall accrue on Registrable Securities that (y) have
been provided the opportunity to be tendered in an Exchange Offer or (z) are
then covered by an effective Shelf Registration Statement).

 

Upon (1) the earlier of (x) the
exchange of Exchange Securities for all Registrable Securities tendered in an
Exchange Offer and (y) the effectiveness of the Shelf Registration
Statement (in the case of clause (i)(A) above), (2) the exchange of
Exchange Securities for all Registrable Securities tendered in an Exchange
Offer (in the case of clause (i)(B) above), (3) the effectiveness of
the Shelf Registration Statement (in the case of clause (ii)(A) above),
and (4) the effectiveness of the Shelf Registration Statement which had
ceased to remain effective (in the case of clause (ii)(B) above),
Additional Interest on the Registrable Securities as a result of such clause
(or the relevant subclause thereof), as the case may be, shall cease to accrue;
provided, however, that in the case of a Registration Default
relating to a Shelf Registration Statement required to be filed under Sections
2(b)(iii) or 2(b)(v) hereof, 
it is expressly understood that Additional Interest shall be payable
only with respect to the Registrable Securities so requested to be registered
pursuant to such sections, and provided, further, however,
that if a Registration Default under clause (ii)(B) above occurs because
of the filing of a post-effective amendment to a Shelf Registration Statement
to incorporate annual audited financial information with respect to the Issuer
or to add Holders to the “Selling Securityholders” table (or to update any
information in such table) where such post-effective amendment is not yet
effective and needs to be declared effective to permit Holders to use the
related Prospectus, it is expressly understood that Additional Interest shall
be payable only from and after the date such Registration Default continues for
at least 30 days and shall be payable only to holders of Registrable Securities
listed in such Shelf Registration Statement.

 

10

 

Notwithstanding the foregoing, (1) the
amount of Additional Interest payable shall not increase because more than one
Registration Default has occurred and is pending, and (2) a Holder of
Registrable Securities or Exchange Securities who is not entitled to the
benefits of the Shelf Registration Statement, including a Holder whose
Registrable Securities are excluded from a Shelf Registration Statement as a
result of its failure to provide the information required by Section 2(f) hereof,
shall not be entitled to Additional Interest with respect to a Registration
Default that pertains to the Shelf Registration Statement.

 

(e)           Without limiting the
remedies available to the Holders, the Issuer and the Guarantors acknowledge
that any failure by the Issuer and the Guarantors to comply with their obligations
under Section 2(a) and Section 2(b) hereof may
result in material irreparable injury to the Holders for which there is no
adequate remedy at law, that it will not be possible to measure damages for
such injuries precisely and that, in the event of any such failure, any Holder
may obtain such relief as may be required to specifically enforce the Issuer’s
and the Guarantors’ obligations under Section 2(a) and Section 2(b)
hereof.

 

(f)            No Holder of Registrable
Securities may include any of its Registrable Securities in any Shelf
Registration unless and until such Holder furnishes to the Issuer, in writing
within 15 days after receipt of a request therefor, the information with
respect to such Holder specified in Regulation S-K under the 1933 Act and any
other applicable rules, regulations or policies of the SEC for use in
connection with any Shelf Registration or Prospectus included therein, on a
form to be provided by the Issuer.  Each
selling Holder agrees to furnish promptly to the Issuer additional information
to be disclosed so that the information previously furnished to the Issuer by
such Holder does not contain any untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading.  No
Holder of Registrable Securities shall be entitled to Additional Interest
pursuant to Section 2(d) hereof unless and until such Holder shall
have provided all such information.

 

(g)           The Issuer and the
Guarantors may delay the filing or the effectiveness of an Exchange Offer
Registration Statement or a Shelf Registration Statement (including any
post-effective amendment thereto) for a period of up to 30 days during any
90-day period if (i) there occur material events or developments with respect
to the Issuer and the Guarantors that would need to be described in such
Registration Statement or the related Prospectus, and the effectiveness of such
Registration Statement is reasonably required to be suspended while such
Registration Statement and related Prospectus are amended or supplemented to
reflect such events or developments, (ii) there occur material events or
developments with respect to the Issuer or any of its Affiliates, the
disclosure of which the Issuer and the Guarantors determine in good faith would
have a material adverse effect on the business, operations or prospects of the
Issuer and the Guarantors, or (iii) the Issuer and the Guarantors do not
wish to disclose publicly a pending material business transaction that has not
yet been publicly disclosed; provided, however, that any delay
period with respect to Registration Defaults arising under this Section 2(g)
will not alter the obligations of the Issuer and the Guarantors to pay Additional
Interest with respect to a Registration Default subject to the limitations and
exceptions set forth in Section 2(d) above.

 

(h)           Additional Interest due on
the Securities pursuant to Section 2(d) hereof will be payable
in cash semiannually in arrears on the same interest payment dates as the Securities,

 

11

 

commencing with the first interest payment
date occurring after any such Additional Interest commences to accrue.

 

3.             Registration Procedures.

 

In connection with the obligations of the Issuer and
the Guarantors with respect to the Registration Statements pursuant to Section 2(a)
and Section 2(b) hereof, the Issuer and the Guarantors shall:

 

(a)           prepare and file with the
SEC a Registration Statement on the appropriate form under the 1933 Act, which
form (x) shall be selected by the Issuer and (y) shall, in the case of a
Shelf Registration, be available for the sale of the Registrable Securities by
the selling Holders thereof and (z) shall comply as to form in all
material respects with the requirements of the applicable form and include all
financial statements required by the SEC to be filed therewith, and use their
commercially reasonable efforts to cause such Registration Statement to become effective
and remain effective in accordance with Section 2 hereof;

 

(b)           prepare and file with the
SEC such amendments and post-effective amendments to each Registration
Statement as may be necessary to keep such Registration Statement effective for
the applicable period and, except for such periods as to which such action is
not required pursuant to Section 2(g) hereof, cause each Prospectus
to be supplemented by any prospectus supplement required by applicable law and,
as so supplemented, to be filed pursuant to Rule 424 under the 1933 Act; to
keep each Prospectus current during the period described under Section 4(3) and
Rule 174 under the 1933 Act that is applicable to transactions by brokers
or dealers with respect to the Registrable Securities or Exchange Securities;

 

(c)           in the case of a Shelf
Registration, furnish to each Holder of Registrable Securities listed in the
Shelf Registration Statement and the related Prospectus, to counsel for the
Holders and to each Underwriter of an Underwritten Offering of Registrable Securities,
if any, without charge, as many copies of each Prospectus, including each
preliminary Prospectus, and any amendment or supplement thereto and such other
documents as such Holder or Underwriter may reasonably request, in order to facilitate
the public sale or other disposition of the Registrable Securities thereunder;
and, except for the periods set forth in Section 2(g) hereof, the
Issuer and the Guarantors consent to the use of such Prospectus and any
amendment or supplement thereto in accordance with applicable law by each of
the selling Holders of Registrable Securities and any such Underwriters in
connection with the offering and sale of the Registrable Securities covered by
and in the manner described in such Prospectus or any amendment or supplement
thereto in accordance with applicable law;

 

(d)           use their commercially
reasonable efforts to register or qualify the Registrable Securities under all
applicable state securities or “blue sky” laws of such jurisdictions as any
Holder of Registrable Securities covered by a Registration Statement shall
reasonably request in writing by the time the applicable Registration Statement
is declared effective by the SEC, to cooperate with such Holders in connection
with any filings

 

12

 

required
to be made with the New York Stock Exchange and FINRA and do any and all other
acts and things which may be reasonably necessary or advisable to enable such
Holder to consummate the disposition in each such jurisdiction of such
Registrable Securities owned by such Holder; provided, however,
that none of the Issuer or the Guarantors shall be required to (i) qualify as a
foreign corporation or as a dealer in securities in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(d),
(ii) file any general consent to service of process or (iii) subject
itself to taxation in any such jurisdiction if it is not so subject;

 

(e)           in the case of a Shelf
Registration, notify each Holder of Registrable Securities listed in the Shelf
Registration Statement and the related Prospectus and counsel for the Holders
promptly and, if requested by any such Holder or counsel, confirm such advice
in writing (i) when a Registration Statement has become effective and when
any post-effective amendment thereto has been filed and becomes effective, (ii) of
any request by the SEC or any state securities authority for amendments and
supplements to a Registration Statement and Prospectus or for additional information
after the Registration Statement has become effective, (iii) of the
issuance by the SEC or any state securities authority of any stop order
suspending the effectiveness of a Registration Statement or the initiation of
any proceedings for that purpose, (iv) if, between the effective date of a
Registration Statement and the closing of any sale of Registrable Securities covered
thereby, the representations and warranties of the Issuer and the Guarantors
contained in any underwriting agreement, securities sales agreement or other
similar agreement, if any, relating to the offering cease to be true and
correct in all material respects or if the Issuer or the Guarantors receive any
notification with respect to the suspension of the qualification of the Registrable
Securities for sale in any jurisdiction or the initiation of any proceeding for
such purpose, (v) of the happening of any event during the period a Shelf
Registration Statement is effective which makes any statement made in such Registration
Statement or the related Prospectus untrue in any material respect or which requires
the making of any changes in such Registration Statement or Prospectus in order
to make the statements therein not misleading, and (vi) of any
determination by the Issuer and the Guarantors that a post-effective amendment
to a Registration Statement  (other than
an amendment that does nothing more substantive than add one or more Holders to
the “Selling Securityholders” table of such Registration Statement or to update
any information set forth in such table) would be appropriate except, in the
case of clauses (iv), (v), and (vi), with respect to any event, development or
transaction permitted to be kept confidential under Section 2(g) hereof,
the Issuer and the Guarantors shall not be required to describe such event,
development or transaction in the written notice provided;

 

(f)            make commercially reasonable
efforts to obtain the withdrawal of any order suspending the effectiveness of a
Registration Statement as promptly as practicable and provide reasonably prompt
notice to each Holder of the withdrawal of any such order;

 

(g)           in the case of a Shelf
Registration, furnish to each Holder of Registrable Securities listed in the
Shelf Registration Statement and the related Prospectus, without charge, at
least one conformed copy of each Registration Statement and any post-

 

13

 

effective
amendment thereto (without documents incorporated therein by reference or exhibits
thereto, unless requested);

 

(h)           in the case of a Shelf
Registration, cooperate with the selling Holders of Registrable Securities
listed in the Shelf Registration Statement and the related Prospectus to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities to be sold and not bearing any restrictive legends and
enable such Registrable Securities to be in such denominations (consistent with
the provisions of the Indenture) and registered in such names as the selling
Holders may reasonably request at least one business day prior to the closing
of any sale of Registrable Securities;

 

(i)            in the case of a Shelf
Registration, upon the occurrence of any event contemplated by Section 3(e)(v)
hereof, as promptly as practicable prepare and file with the SEC a supplement
or post-effective amendment to a Registration Statement or the related
Prospectus or any document incorporated therein by reference or file any other
required document so that, as thereafter delivered to the purchasers of the
Registrable Securities, such Prospectus will not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the statements
therein, in light of the circumstances under which they were made, not
misleading; the Issuer and the Guarantors agree to notify the Holders of
Registrable Securities listed in the Shelf Registration Statement and the related
Prospectus to suspend use of the Prospectus as promptly as practicable after
the occurrence of such an event, and such Holders hereby agree to suspend use
of the Prospectus until the Issuer and the Guarantors have amended or
supplemented the Prospectus to correct such misstatement or omission and
expressly agree to maintain the information contained in such notice confidential
(except that such information may be disclosed to its counsel) until it has
been publicly disclosed by the Issuer and the Guarantors; notwithstanding the
foregoing, the Issuer and the Guarantors shall not be required to amend or
supplement a Registration Statement, any related Prospectus or any document
incorporated or deemed to be incorporated therein by reference if (i) an
event occurs and is continuing as a result of which the Shelf Registration, any
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, would, in the Issuer’s and the Guarantors’ good faith
judgment, contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein not misleading
(with respect to such a Prospectus only, in the light of the circumstances under
which they were made), and (ii) (a) the Issuer and the Guarantors
determine in their good faith judgment that the disclosure of such event at
such time would have a material adverse effect on the business, operations or
prospects of the Issuer and the Guarantors, or (b) the disclosure
otherwise relates to a pending material business transaction that has not yet
been publicly disclosed;

 

(j)            in the case of a Shelf
Registration Statement, a reasonable time prior to the filing of any
Registration Statement, any Prospectus, any amendment to a Registration
Statement or amendment or supplement to a Prospectus, provide copies of such
document to, the Holders of Registrable Securities listed in the Shelf
Registration Statement and the related Prospectus and their counsel and make
such of the representatives of the Issuer and the Guarantors as shall be
reasonably requested by such Holders or their counsel 

 

14

 

available
for discussion of such document, and shall not at any time file or make any
amendment to the Registration Statement, any Prospectus or any amendment of or
supplement to a Registration Statement or a Prospectus, of which such Holders
and their counsel shall not have previously been advised and furnished a copy
or to which such Holders or their counsel shall reasonably object on a timely
basis, except for any Registration Statement or amendment thereto or related
Prospectus or supplement thereto (a copy of which has been previously furnished
as provided in the preceding sentence) which counsel to the Issuer and the
Guarantors has advised the Issuer and the Guarantors in writing is required to
be filed in order to comply with applicable law; provided, however,
that the foregoing procedures shall be coordinated on behalf of such Holders by
a representative designated by the majority in aggregate principal amount of
the Holders selling Registrable Securities;

 

(k)           obtain a CUSIP number for
all Exchange Securities or Registrable Securities, as the case may be, not
later than the effective date of a Registration Statement;

 

(l)            cause the Indenture to be
qualified under the Trust Indenture Act of 1939, as amended (the “TIA”), in connection with the
registration of the Exchange Securities or Registrable Securities, as the case
may be, cooperate with the Trustee and the Holders to effect such changes to
the Indenture as may be required for the Indenture to be so qualified in
accordance with the terms of the TIA and execute, and use their commercially reasonable
efforts to cause the Trustee to execute, all documents as may be required to
effect such changes and all other forms and documents required to be filed with
the SEC to enable the Indenture to be so qualified in a timely manner;

 

(m)          in the case of an
Underwritten Offering pursuant to a Shelf Registration, make available for
inspection upon written request by a representative of the Holders of the
Registrable Securities listed in the Shelf Registration Statement and the
related Prospectus, any Underwriter participating in any disposition pursuant
to such Shelf Registration Statement, and attorneys and accountants designated
by such Holders, at reasonable times and in a reasonable manner, all pertinent
financial and other records, pertinent documents and properties of the Issuer
and the Guarantors as shall be reasonably necessary to enable them to exercise
any applicable due diligence responsibilities, and cause the respective
officers, directors and employees of the Issuer and the Guarantors to supply
all information reasonably requested by any such representative, Underwriter,
attorney or accountant in connection with their due diligence responsibilities
under a Shelf Registration Statement; provided, however, that
records and information that the Issuer and the Guarantors determine in good
faith to be confidential and so notifies such representative, Underwriter,
attorney, or accountant are confidential shall not be disclosed to any such
representative, Underwriter, attorney, or accountant unless (i) the
disclosure of such information is necessary to avoid or correct a material
misstatement or material omission in an effective Registration Statement or
Prospectus, (ii) the release of such information is ordered pursuant to a
subpoena or other order from a court of competent jurisdiction or (iii) the
information has been made generally available to the public other than by any
of such persons or an Affiliate of any such persons, provided, however,
that if any such information has been disclosed to any such representative,
Underwriter, attorney, or

 

15

 

accountant,
prior notice shall be provided as soon as practicable to the Issuer and the
Guarantors of the potential disclosure of any information by such person under
the circumstances described in clause (i) or (ii) of this sentence in
order to permit the Issuer and the Guarantors to obtain a protective order; provided,
further, however, that if such records and information are
determined to be confidential, the Issuer and the Guarantors shall (a) provide
summaries of such information to counsel for such Underwriter or (b) provide
other means as reasonably requested by the Underwriter to enable such Underwriter
to satisfy its due diligence requirements without compromising the
confidentiality of such information;

 

(n)           if reasonably requested by
any Holder of Registrable Securities covered by a Registration Statement, (i) subject
to Section 2(b) of this Agreement, promptly incorporate in a
Prospectus supplement or post-effective amendment such information with respect
to such Holder as such Holder reasonably requests to be included therein and (ii)
subject to Section 2(b) of this Agreement, make all required filings of
such Prospectus supplement or such post-effective amendment as soon as the
Issuer has received notification of the matters to be incorporated in such
filing; and

 

(o)           in the case of an
Underwritten Offering pursuant to a Shelf Registration, enter into such
customary agreements and take all such other actions in connection therewith
(including those requested by the Holders of a majority of the Registrable Securities
being sold) in order to expedite or facilitate the disposition of such Registrable
Securities and in connection therewith, (i) to the extent possible, make such
representations and warranties to any Underwriters of such Registrable
Securities with respect to the business of the Issuer and its subsidiaries, the
Registration Statement, Prospectus and documents incorporated by reference or
deemed incorporated by reference, if any, in each case, in form, substance and
scope as are customarily made by issuers to underwriters in underwritten
offerings and confirm the same in writing if and when requested, (ii) obtain
opinions of counsel to the Issuer and the Guarantors (which counsel and
opinions, in form, scope and substance, shall be reasonably satisfactory to
such Underwriters and their respective counsel) addressed to each Underwriter
of Registrable Securities, covering the matters customarily covered in opinions
requested in underwritten offerings, (iii) obtain “cold comfort” letters from
the independent certified public accountants of the Issuer  (and, if necessary, any other certified
public accountant of any subsidiary of the Issuer, or of any business acquired
by the Issuer for which financial statements and financial data are or are
required to be included in the Registration Statement) addressed to each Underwriter
of Registrable Securities, such letters to be in customary form and covering
matters of the type customarily covered in “cold comfort” letters in connection
with underwritten offerings, (iv) if an underwriting agreement is entered
into, include in such underwriting agreement indemnification provisions and
procedures no less favorable to the selling Holders and underwriters, if any,
than those set forth in Section 5 hereof (or such other provisions
and procedures acceptable to Holders of a majority in aggregate principal
amount of Registrable Securities covered by such Registration Statement and the
underwriters (if any), and (v) deliver such documents and certificates as may
be reasonably requested by the Underwriters, and which are customarily
delivered in underwritten offerings, to evidence the continued validity of the
representations and warranties of 

 

16

 

the
Issuer and the Guarantors made pursuant to clause (i) above and to
evidence compliance with any customary conditions contained in an underwriting
agreement.

 

In the case of a Shelf Registration
Statement, the Issuer may require each Holder of Registrable Securities to
furnish to the Issuer such information regarding the Holder and the proposed
distribution by such Holder of such Registrable Securities as the Issuer may
from time to time reasonably request in writing.  The Issuer may exclude from such registration
the Registrable Securities of any seller so long as such seller fails to
furnish such information within a reasonable time after receiving such
request.  Each seller as to which any
Shelf Registration is being effected agrees to furnish promptly to the Issuer
all information required to be disclosed in order to make the information
previously furnished to the Issuer by such seller not materially misleading.

 

In the case of a Shelf Registration Statement
or if Participating Broker-Dealers who have notified the Issuer that they will
be utilizing the Prospectus contained in the Exchange Offer Registration Statement
as provided in this Section 3(o) are seeking to sell Exchange
Securities and are required to deliver Prospectuses, each Holder agrees that,
upon receipt of any notice from the Issuer of the happening of any event of the
kind described in Section 3(e)(v) hereof, such Holder will
forthwith discontinue disposition of Registrable Securities pursuant to a
Registration Statement until such Holder’s receipt of the copies of the
supplemented or amended Prospectus contemplated by Section 3(i) hereof,
and, if so directed by the Issuer, such Holder will deliver to the Issuer (at
its expense) all copies in its possession, other than permanent file copies
then in such Holder’s possession, of the Prospectus covering such Registrable
Securities current at the time of receipt of such notice.  If the Issuer shall give any such notice to
suspend the disposition of Registrable Securities pursuant to a Registration
Statement, the Issuer shall extend the period during which the Registration
Statement shall be maintained effective pursuant to this Agreement by the
number of days during the period from and including the date of the giving of
such notice to and including the date when the Holders shall have received
copies of the supplemented or amended Prospectus necessary to resume such
dispositions.

 

The Holders of Registrable Securities covered by a
Shelf Registration Statement who desire to do so may sell such Registrable
Securities in an Underwritten Offering. 
In any such Underwritten Offering, the investment banker or investment
bankers and manager or managers (the “Underwriters”)
that will administer the offering will be selected by the Majority Holders of
the Registrable Securities included in such offering.

 

4.             Participation of Broker-Dealers in
Exchange Offer.

 

(a)           The Staff of the SEC has
taken the position that any broker-dealer that receives Exchange Securities for
its own account in the Exchange Offer in exchange for Securities that were
acquired by such broker-dealer as a result of market-making or other trading
activities (a “Participating Broker-Dealer”),
may be deemed to be an “underwriter” within the meaning of the 1933 Act and
must deliver a prospectus meeting the requirements of the 1933 Act in connection
with any resale of such Exchange Securities.

 

17

 

The Issuer and the Guarantors understand that it is
the Staff’s position that if the Prospectus contained in the Exchange Offer
Registration Statement includes a plan of distribution containing a statement
to the above effect and the means by which Participating Broker-Dealers may
resell the Exchange Securities, without naming the Participating Broker-Dealers
or specifying the amount of Exchange Securities owned by them, such Prospectus
may be delivered by Participating Broker-Dealers to satisfy their prospectus
delivery obligation under the 1933 Act in connection with resales of Exchange
Securities for their own accounts, so long as the Prospectus otherwise meets
the requirements of the 1933 Act.

 

(b)           In light of the above,
notwithstanding the other provisions of this Agreement, the Issuer and the
Guarantors agree that the provisions of this Agreement as they relate to a
Shelf Registration shall also apply to an Exchange Offer Registration to the
extent, and with such reasonable modifications thereto as may be, reasonably
requested by one or more Participating Broker-Dealers as provided in clause (ii) below,
in order to expedite or facilitate the disposition of any Exchange Securities
by Participating Broker-Dealers consistent with the positions of the Staff
recited in Section 4(a) above; provided, however,
that:

 

(i)            the Issuer and
the Guarantors shall not be required to keep the Exchange Offer Registration
Statement effective, as would otherwise be contemplated by Section 2(b) for
a period exceeding 90 days after the date on which such Exchange Offer Registration
Statement is declared effective (as such period may be extended pursuant to the
penultimate paragraph of Section 3 of this Agreement as applied to such Exchange
Offer Registration Statement);

 

(ii)           the Issuer and
the Guarantors shall not be required to amend or supplement the Prospectus
contained in the Exchange Offer Registration Statement, as would otherwise be
contemplated by Section 3(i), for a period exceeding 90 days after
the date on which such Exchange Offer Registration Statement is declared
effective (as such period may be extended pursuant to the penultimate paragraph
of Section 3 of this Agreement as applied to such Exchange Offer
Registration Statement) and Participating Broker-Dealers shall not be
authorized by the Issuer to deliver and shall not deliver such Prospectus after
such period in connection with the resales contemplated by this Section 4;
and

 

(iii)          the application
of the Shelf Registration procedures set forth in Section 3 of this
Agreement to an Exchange Offer Registration, to the extent not required by the
positions of the Staff of the SEC or the 1933 Act and the rules and regulations
thereunder, will be in conformity with the reasonable request in writing to the
Issuer by one or more broker-dealers who certify to the Issuer in writing that
they anticipate that they will be Participating Broker-Dealers; and provided,
further, however, that, in connection with such application of
the Shelf Registration procedures set forth in Section 3 to an Exchange
Offer Registration, the Issuer and the Guarantors shall be obligated (x) to
deal only with the Broker-Dealer Representatives and (y) to pay the fees and
expenses of only one counsel representing the Participating Broker-Dealers.

 

18

 

5.                                      Indemnification and Contribution.

 

The Issuer and the Guarantors hereby agree to
indemnify and hold harmless each Holder of Registrable Securities and each
Participating Broker-Dealer selling Exchange Securities during the applicable
period, and each Person, if any, who controls such Person or its affiliates
within the meaning of Section 15 of the 1933 Act or Section 20 of the
1934 Act (each, a “Participant”) from and
against any and all losses, claims, damages, liabilities or expenses (whether
direct or indirect, in contract, tort or otherwise) whatsoever, as incurred
(including the cost of any investigation or preparation) arising out of or
based upon:

 

(i)                                     any untrue
statement or alleged untrue statement of a material fact contained in any
Registration Statement (or any amendment thereto) or Prospectus (as amended or
supplemented if the Issuer and Guarantors shall have furnished any amendments
or supplements thereto) or any preliminary prospectus; or

 

(ii)                                  the omission or
alleged omission to state, in any Registration Statement (or any amendment
thereto) or Prospectus (as amended or supplemented if the Issuer and the
Guarantors shall have furnished any amendments or supplements thereto) or any
preliminary prospectus or any other document or any amendment or supplement
thereto, a material fact necessary to make the statements made therein, in the
light of the circumstances under which they were made, not misleading;

 

provided, however,
the Issuer and the Guarantors will not be liable in any such case to the extent
that any such loss, claim, damage, liability or expense arises out of or is
based upon any untrue statement or alleged untrue statement or omission or
alleged omission made in any Registration Statement (or any amendment thereto)
or Prospectus (as amended or supplemented if the Issuer and the Guarantors
shall have furnished any amendments or supplements thereto) or any preliminary
prospectus or any amendment or supplement thereto of a material fact necessary
in order to make the statements made therein, in the light of the circumstances
under with they were made, not misleading, if in any case such statement or
omission relates to such Participant and was made in reliance upon and in
conformity with information furnished in writing to the Issuer by such
Participant expressly for use therein. 
The indemnity provided for in this Section 5 will be in
addition to any liability that the Issuer and the Guarantors may otherwise have
to the indemnified parties.  None of the
Issuer or the Guarantors shall be liable under this Section 5 for
any settlement of any claim or action effected without its prior written
consent, which shall not be unreasonably withheld.  No Participant shall, without the prior
written consent of the Issuer and the Guarantors, effect any settlement or
compromise of any pending or threatened proceeding in respect of which the
Issuer or the Guarantors are or could have been a party, or indemnity could
have been sought hereunder by the Issuer and the Guarantors, unless such settlement
(A) includes an unconditional release of the Issuer and the Guarantors
from all liability in any way related to or arising out of such litigation or
proceeding and (B) does not impose any actual or potential liability or any
other obligation upon the Issuer or any Guarantor and does not contain any
factual or legal admission of fault, culpability or a failure to act by or with
respect to the Issuer or any Guarantor.

 

Each Participant, severally and not jointly, agrees
to hold the Issuer and the Guarantors harmless and to indemnify the Issuer and
the Guarantors (including any of their respective 

 

19

 

affiliated companies and any
director, officer, agent or employee of the Issuer, the Guarantors or any such
affiliated company) and any director, officer, or other person controlling
(within the meaning of Section 15 of the 1933 Act or Section 20(a) of the
1934 Act) the Issuer and the Guarantors (including any of the Issuer’s
affiliated companies) from and against any and all losses, claims, damages,
liabilities or expenses (whether direct or indirect, in contract, tort or
otherwise) whatsoever, as incurred (including the cost of any investigation and
preparation) arising out of or based upon (i) any untrue statement or alleged
untrue statement of a material fact contained in any Registration Statement or
Prospectus, any amendment or supplement thereto, or any preliminary prospectus,
or (ii) the omission or the alleged omission to state therein a material fact
necessary to make the statements made therein, in light of the circumstances
under which they were made, not misleading, in each case to the extent, but
only to the extent, that such untrue statement or alleged untrue statement or
omission or alleged omission relates to such Participant and was made in
reliance upon and in conformity with information furnished in writing by such
Participant, expressly for use therein. 
The indemnity provided for in this Section 5 will be in addition
to any liability that the Participants may otherwise have to the indemnified
parties.  The Participants shall not be
liable under this Section 5 for any settlement of any claim or
action effected without their consent, which shall not be unreasonably
withheld.  Neither the Issuer nor the
Guarantors shall, without the prior written consent of such Participant, effect
any settlement or compromise of any pending or threatened proceeding in respect
of which such Participant is or could have been a party, or indemnity could
have been sought hereunder by such Participant, unless such settlement (A) includes
an unconditional release of such Participant, from all liability in any way
related to or arising out of such litigation or proceeding and (B) does not
impose any actual or potential liability or any other obligation upon any such
Participant and does not contain any factual or legal admission of fault,
culpability or a failure to act by or with respect to any such Participant.

 

If a claim is made against any indemnified party as
to which such indemnified party may seek indemnity under this Section 5,
such indemnified person shall notify the indemnifying party promptly after any
written assertion of such claim threatening to institute an action or
proceeding with respect thereto and shall notify the indemnifying party
promptly of any action commenced against such indemnified party within a
reasonable time after such indemnified party shall have been served with a
summons or other first legal process giving information as to the nature and
basis of the claim.  Failure to so notify
the indemnifying party shall not, however, relieve the indemnifying party from
any liability which it may have on account of the indemnity under this Section 5,
except to the extent such failure results in the forfeiture by the indemnifying
party of material rights and defenses. 
The indemnifying party shall have the right to assume the defense of any
such litigation or proceeding, including the engagement of counsel reasonably
satisfactory to the indemnified party. 
In any such litigation or proceeding the defense of which the
indemnifying party shall have so assumed, any indemnified party shall have the
right to participate in such litigation or proceeding and to retain its own
counsel, but the fees and expenses of such counsel shall be at the expense of
such indemnified party unless (i) the indemnifying party shall have failed
promptly to assume the defense thereof and employ counsel as provided above, or
(ii) counsel to the indemnified party reasonably determines that representation
of such indemnified party by the indemnifying party’s counsel would present the
indemnifying party’s counsel with a conflict of interest.  It is understood that the indemnifying party
shall not, in connection with any litigation or proceeding or related
litigation or proceeding in the same jurisdiction,

 

20

 

be liable under this
Agreement for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all such indemnified parties and that all such fees
and expenses shall be reimbursed as they are incurred.  Such separate firm shall be designated by the
indemnified party.

 

To the extent the indemnity provided for in the
foregoing paragraphs of this Section 5 is for any reason held
unenforceable although otherwise applicable in accordance with its terms with
respect to an indemnified party in respect of any losses, claims, damages,
liabilities or expenses referred to therein, then the indemnifying party agrees
to contribute to the amount paid or payable by such indemnified person as a
result of such losses, claims, damages, liabilities or expenses (i) in such
proportion as is appropriate to reflect the relative benefits received by the
indemnifying party, on the one hand, and by such indemnified party, on the
other, from the offering of the Securities or (ii) if the allocation
provided by the foregoing clause (i) is not permitted by applicable law,
in such proportion as is appropriate to reflect not only the relative benefits
referred to in the foregoing clause (i), but also the relative fault of the
indemnifying party, on the one hand, and of such indemnified party, on the
other, in connection with the statements, actions or omissions which resulted
in such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations.  The
relative benefits received by the Issuer and the Guarantors, on the one hand,
and by such Participant, on the other, shall be deemed in the same proportion as
the total proceeds from the offering (before deducting expenses) of the
Securities received by the Issuer and the Guarantors bear to the total net
profit received by such Participant in connection with the sale of the
Securities.  Relative fault shall be
determined by reference to, among other things, whether any alleged untrue
statement or omission or any other alleged conduct relates to information
provided by the Issuer and the Guarantors or other conduct by the Issuer and
the Guarantors (or their employees or other agents), on the one hand, or by
such Participants, on the other hand.

 

The parties agree that it would not be equitable if
the amount of such contribution were determined by pro rata or per capita
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the first sentence of the previous
paragraph.  Notwithstanding any other
provision of the previous paragraph, no Participant shall be obligated to make
contributions hereunder that in the aggregate exceed the total net profit
received by such Participant in connection with the sale of the Securities,
less the aggregate amount of any damages that such Participant has otherwise
been required to pay by reason of the untrue or alleged untrue statements or
the omissions or alleged omissions to state a material fact, and no person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
of the 1933 Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. 
For purposes of this paragraph (d), each person, if any, who controls a
Participant within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act shall have the same rights to contribution as the Participants,
and each director of the Issuer or any Guarantor, each officer of the Issuer or
any Guarantor, if any, who controls the Issuer or any Guarantor within the
meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, shall
have the same rights to contribution as the Issuer and the Guarantors.

 

21

 

6.                                      Miscellaneous.

 

(a)                                  No Inconsistent
Agreements.  The Issuer
and the Guarantors have not entered into, and on or after the date of this
Agreement will not enter into, any agreement which is inconsistent with the
rights granted to the Holders of Registrable Securities in this Agreement or otherwise
conflicts with the provisions hereof. 
The rights granted to the Holders hereunder do not in any way conflict
with and are not inconsistent with the rights granted to the holders of the
Issuer’s or any of the Guarantors’ other issued and outstanding securities
under any such agreements.

 

(b)                                 Amendments and
Waivers.  The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given unless the Issuer has obtained the written
consent of Holders of at least a majority in aggregate principal amount of the
outstanding Registrable Securities affected by such amendment, modification,
supplement, waiver or consent; provided, however, that no
amendment, modification, supplement, waiver or consent to any departure from
the provisions of Section 5 hereof shall be effective as against
any Holder of Registrable Securities unless consented to in writing by such
Holder.  Notwithstanding the foregoing
sentence, (i) a waiver or consent to depart from the provisions hereof with
respect to a matter that relates exclusively to the rights of Holders of
Registrable Securities whose securities are being sold pursuant to a
Registration Statement and that does not directly or indirectly affect, impair,
limit or compromise the rights of other Holders of Registrable Securities may
be given by Holders of at least a majority in aggregate principal amount of
Registrable Securities being sold pursuant to such Registration Statement, (ii)
this Agreement may be amended, without the consent of any Holder of Registrable
Securities, by written agreement signed by the Issuer and the Initial
Purchasers, to cure any ambiguity, correct or supplement any provision of this
Agreement that may be inconsistent with any other provision of this Agreement
or to make any other provisions with respect to matters or questions arising
under this Agreement which shall not be inconsistent with other provisions of
this Agreement, (iii) this Agreement may be amended, modified or
supplemented, and waivers and consents to departures from the provisions hereof
may be given, by written agreement signed by the Issuer and the Initial
Purchasers to the extent that any such amendment, modification, supplement,
waiver or consent is, in their reasonable judgment, necessary or appropriate to
comply with applicable law (including any interpretation of the Staff of the
SEC) or any change therein and (iv) to the extent any provision of this
Agreement relates to an Initial Purchaser, such provision may be amended,
modified or supplemented, and waivers or consents to departures from such
provisions may be given, by written agreement signed by such Initial Purchaser
and the Issuer.

 

(c)                                  Notices.  All notices and other communications provided
for or permitted hereunder shall be made in writing by hand-delivery,
registered first-class mail, telex, telecopier, or any courier guaranteeing
overnight delivery (i) if to a Holder, at the most current address given
by such Holder to the Issuers by means of a notice given in accordance with the
provisions of this Section 6(c); (ii) if to the Issuer or the
Guarantors, initially at the Issuer’s address set forth in the Indenture and
thereafter at such other address, notice of which is given in accordance with
the provisions of this Section 6(c); and (iii) if to the Trustee,
initially at the Trustee’s address set 

 

22

 

forth
in the Indenture and thereafter at such other address, notice of which is given
in accordance with the provisions of this Section 6(c).

 

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

 

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

 

(d)                                 Successors and
Assigns.  This Agreement shall inure to
the benefit of and be binding upon the successors, assigns and transferees of
each of the parties, including, without limitation and without the need for an
express assignment, subsequent Holders; provided that nothing herein
shall be deemed to permit any assignment, transfer or other disposition of Registrable
Securities in violation of the terms of the Indenture.  If any transferee of any Holder shall acquire
Registrable Securities, in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all of the
terms of this Agreement, and by taking and holding such Registrable Securities
such Person shall be conclusively deemed to have agreed to be bound by and to
perform all of the terms and provisions of this Agreement and such Person shall
be entitled to receive the benefits hereof. 
The Trustee (in its capacity as Trustee under the Indenture or acting on
behalf of the Holders pursuant to this Agreement) shall have no liability or
obligation to either (i) the Issuer or the Guarantors with respect to any
failure by a Holder to comply with, or any breach by any Holder of, any of the
obligations of such Holder under this Agreement or (ii) any Holder with
respect to any failure by the Issuer or the Guarantors to comply with, or any
breach by the Issuer or the Guarantors of, any of the obligations of the Issuer
or the Guarantors under this Agreement.

 

(e)                                  Entire
Agreement.  This
Agreement contains the entire agreement among the parties hereto with respect
to the subject matter hereof and supersedes and replaces all other prior
agreements, written or oral, among the parties hereto with respect to the
subject matter hereof.

 

(f)                                    Third Party
Beneficiary.  The Holders
shall be third party beneficiaries to the agreements made hereunder between the
Issuer and the Guarantors, on the one hand, and the Initial Purchasers, on the
other hand, and shall have the right to enforce such agreements directly to the
extent they deem such enforcement necessary or advisable to protect their
rights hereunder.

 

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

 

23

 

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

 

(i)                                     Governing Law.  The internal laws of the State of New York
shall govern the enforceability and validity of this Agreement, the
construction of its terms and the interpretation of the rights and duties of
the parties hereto without giving effect to conflicts of laws, rules or
principles.

 

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

 

24

 

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

 

	
   

  	
  QWEST COMMUNICATIONS

  INTERNATIONAL INC.

  
	
   

  	
  QWEST
  SERVICES CORPORATION

  
	
   

  	
  QWEST
  CAPITAL FUNDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

25

 

	
   

  	
  DEUTSCHE
  BANK SECURITIES INC.,

  
	
   

  	
  As
  Representative of the Initial Purchasers

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

26

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