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Exhibit 4.2  

EXECUTION COPY  

 
 

SECOND AMENDED AND RESTATED    
    
    STOCKHOLDERS AGREEMENT    
    
    By and Among    
    
    MetroPCS Communications, Inc.    
    
    and    
    
    The Stockholders, as
defined herein    
    
    Dated as of August 30, 2005    
    

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	ARTICLE 1	 	GENERAL	 	1
	 	Section 1.1	 	Construction of Terms	 	1
	 	Section 1.2	 	Number of Shares of Stock	 	1
	 	Section 1.3	 	Defined Terms	 	2
	 	Section 1.4	 	Representations and Warranties	 	5
	 	Section 1.5	 	Covenants of the Stockholders	 	5
	 	Section 1.6	 	Covenants of the Company	 	6
	
ARTICLE 2	
 	
RIGHTS AND OBLIGATIONS OF STOCKHOLDERS AND DIRECTORS	
 	
6
	 	Section 2.1	 	Rights and Obligations of the Class A Stockholders	 	6
	 	Section 2.2	 	Rights and Obligations of the Standard Common Stockholders and the Preferred Stockholders	 	8
	 	Section 2.3	 	Director Compensation	 	10
	 	Section 2.4	 	Director and Board Observer Obligations	 	10
	
ARTICLE 3	
 	
SUPERMAJORITY VOTING RIGHTS	
 	
10
	 	Section 3.1	 	General	 	10
	 	Section 3.2	 	Termination	 	12
	 	Section 3.3	 	Affiliated Transactions	 	12
	
ARTICLE 4	
 	
TRANSFERS; FIRST REFUSAL; CO-SALE; OTHER	
 	
13
	 	Section 4.1	 	General Prohibition	 	13
	 	Section 4.2	 	FCC Restrictions on Transfer	 	14
	 	Section 4.3	 	Right of First Refusal	 	14
	 	Section 4.4	 	Co-Sale Option	 	16
	 	Section 4.5	 	Pledges	 	17
	 	Section 4.6	 	Prohibited Transfers	 	17
	 	Section 4.7	 	Restriction on Transfer	 	17
	 	Section 4.8	 	Assignment of Rights	 	17
	
ARTICLE 5	
 	
RIGHTS TO ACQUIRE SHARES	
 	
18
	 	Section 5.1	 	Pre-Emptive Rights	 	18
	 	Section 5.2	 	Assignment of Rights	 	18
	 	 	 	 	 

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ARTICLE 6	
 	
REGISTRATION RIGHTS	
 	
19
	 	Section 6.1	 	Demand Registration	 	19
	 	Section 6.2	 	Incidental Registration	 	21
	 	Section 6.3	 	Registration Procedures	 	22
	 	Section 6.4	 	Underwritten Offerings	 	25
	 	Section 6.5	 	Preparation; Reasonable Investigation	 	26
	 	Section 6.6	 	Limitations, Conditions and Qualifications to Obligations Under Registration Covenants	 	26
	 	Section 6.7	 	Indemnification	 	27
	 	Section 6.8	 	Registration Expenses	 	30
	 	Section 6.9	 	Certain Rights of Stockholders if Named in a Registration Statement	 	30
	 	Section 6.10	 	Rule 144	 	30
	 	Section 6.11	 	Registration Rights	 	31
	 	Section 6.12	 	Assignment of Rights	 	31
	 	Section 6.13	 	Limitations on Sale or Distribution	 	31
	
ARTICLE 7	
 	
GENERAL	
 	
31
	 	Section 7.1	 	Amendments, Waivers and Consent	 	31
	 	Section 7.2	 	Legend on Securities	 	32
	 	Section 7.3	 	Governing Law	 	32
	 	Section 7.4	 	Section Headings	 	32
	 	Section 7.5	 	Effectiveness; Binding Effect.	 	32
	 	Section 7.6	 	Counterparts—Additional Parties	 	32
	 	Section 7.7	 	Notices and Demands	 	32
	 	Section 7.8	 	Remedies; Severability	 	33
	 	Section 7.9	 	Integration	 	33
	 	Section 7.10	 	Termination	 	33
	 	Section 7.11	 	Confidential Information	 	34

SCHEDULES
AND EXHIBITS 

Schedule 1—Standard
Common Stockholders

Schedule 2—Series C Preferred Stockholders

Schedule 3—Series D Preferred Stockholders

Schedule 4—Investors

Exhibit A—Form of Stockholder Joinder Agreement

Exhibit B—Post Class A Voting Termination Event Provisions 

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SECOND AMENDED AND RESTATED
  STOCKHOLDERS AGREEMENT    
    

        THIS SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (this
"Agreement") is made as of the 30th day of August 2005 by and among (i) MetroPCS Communications, Inc. (the
"Company"), a Delaware corporation (as the successor-in-interest to MetroPCS, Inc., a Delaware corporation
("MetroPCS")), (ii) Roger D. Linquist ("Linquist"), (iii) C. Boyden Gray
("Gray" and together with Linquist, the "Class A Stockholders"), (iv) the stockholders
listed on Schedule 1 hereto (the "Standard Common Stockholders"). (v) the stockholders
listed on Schedule 2 hereto (the "Series C Preferred Stockholders"), (vi) the
stockholders listed on Schedule 3 hereto (the "Series D Preferred Stockholders.") and
(vii) the stockholders listed on Schedule 4 hereto (the "Investors"), and together with
the Class A Stockholders, Standard Common Stockholders, Series C Preferred Stockholders, and Series D Preferred Stockholders, the
"Stockholders"). 

        WHEREAS, the Stockholders currently own all issued and outstanding shares of the Company's Class A Common Stock, par value $0.0001
per share (the "Class A Common Stock"). Common Stock, par value $0.0001 per share (the "Standard Common
Stock" and together with the Class A Common Stock, the "Common Stock") and Series D Convertible Preferred Stock,
par value $0 0001 per share (the "Series D Preferred Stock"); and 

        WHEREAS, the Series C Preferred Stockholders previously owned shares of Series C Cumulative Convertible Participating
Preferred Stock par value $0.0001 per share, issued by MetroPCS, which shares have been converted into Standard Common Stock; 

        WHEREAS, the Company and the investors entered into a Stock Purchase Agreement, dated as of August 30, 2005 (the
"Series E Purchase Agreement"), pursuant to which, among other things, the Investors have agreed to purchase shares of the Company's
Series E Convertible Preferred Stock, par value $0.0001 per share (the "Series E Preferred Stock") and may also purchase, in the Tender
Offer (as defined in the Series B Purchase Agreement), shares of Standard Common Stock and Series D Preferred Stock; and 

        WHEREAS, the Preferred Stock is convertible into shares of Standard Common Stock at the Conversion Price (as defined below); and 

        WHEREAS, the effectiveness of this Agreement is a condition precedent to the Series E Closing under the Series E Purchase
Agreement. 

        NOW THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter set forth, the parties hereto,
intending to be legally bound, hereby agree as follows: 

ARTICLE 1    GENERAL  

        Section 1.1    Construction of Terms.    As used herein, the masculine, feminine or neuter gender, and the
singular or plural number, shall be deemed to be or to include the other genders or number, as the case may be, whenever the context so indicates or requires. 

        Section 1.2    Number of Shares of Stock.    Whenever any provision of this Agreement calls for any
calculation
based on a number of shares of Standard Common Stock or Common Stock held by a Stockholder, the number of shares deemed to be held by a Stockholder for each purpose shall be the total number of shares
of Standard Common Stock and Common Stock then owned by such Stockholder, plus the total number of shares of Standard Common Stock issuable upon conversion of any Series D Preferred Stock and
Series E Preferred Stock (as if conversion occurred on such date), or other convertible securities or exercise of any vested options, warrants or subscription rights then owned by such
Stockholder. 

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           Section 1.3    Defined Terms.    The following capitalized terms, as used
in this Agreement, shall have the
meanings set forth below. 

        "Affiliate" means, at any time, and with respect to any Person, any other Person that at such time directly or indirectly through one or
more intermediaries Controls, or is Controlled by, or is under common Control with, such first Person. 

        "Board" or "Board of Directors" means the Board of Directors of the Company. 

        "Business Day" means any day other than a Saturday, a Sunday or a day on which commercial banks in New York, New York are required or
authorized to be closed. 

        "Charter" means the Company's Second Amended and Restated Certificate of Incorporation as it may be amended or restated from time to time. 

        "Class A Common Stock" has the meaning set forth in the recitals to this Agreement. 

        "Common Stock" has the meaning set forth in the recitals to this Agreement. 

        "Common Stockholder" means the Class A Common Stockholders and the Standard Common Stockholders. 

        "Control" (including the terms "Controlled by" and "under common Control with") means the possession, directly or indirectly, or as
trustee or executor, of the power to direct or cause the direction of the management policies of a Person, whether through the ownership of stock, as trustee or executor, by contract or credit
arrangement or otherwise. 

        "FCC" means the Federal Communications Commission and any successor federal agency performing similar regulatory functions. 

        "Final Order" means any action or decision of the FCC as to which (i) no request for a stay or similar request is pending, no stay
is in effect, the action or decision has not been vacated, reversed, set aside, annulled or suspended and any deadline for filing such request that may be designated by statute or regulation has
passed without the filing of any such request, (ii) no petition for rehearing or reconsideration or application for review is pending and the time for the filing of any such petition or
application has passed, (iii) the FCC does not have the action or decision under reconsideration on its own motion and the time within which it may effect such reconsideration has passed and
(iv) no appeal is pending including other administrative or judicial review, or in effect and any deadline for filing any such appeal that may be designated by statute or rule has passed. 

        "Governmental Authority" means 

        (i)    the
government of the United States of America or any State or other political subdivision thereof, or 

        (ii)   the
government of any jurisdiction in which the Company or any of its Subsidiaries conducts all or any part of its business, or which asserts jurisdiction over any
properties of the Company or any of its Subsidiaries, or 

        (iii)  any
entity exercising executive, legislative, judicial, regulatory or administrative functions of, or pertaining to, any such government. 

        "Indebtedness" means (i) with respect to any Person, any liability, contingent or otherwise, of such Person (A) for borrowed
money (whether or not recourse of the lender is to the whole of the assets of such Person or only to a portion thereof), (B) evidenced by a note, debenture or similar instrument (including a
purchase money obligation) given in connection with the acquisition of any property or assets, (C) for any letter of credit or performance bond in favor of such Person, (D) for the
payment of money relating to a capitalized lease obligation, or (E) any liability, contingent or otherwise (including 

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trade
payables to trade creditors in the ordinary course of business), of such Person to any other Person for any purchase price associated with any acquisition of assets, business or otherwise
(including any deferred purchase price, assumption of indebtedness, noncompetition payments or other forms of consideration); (ii) any liability of others of the kind described in the preceding  clause (i)
, which the Person has guaranteed or which is otherwise its legal liability, contingent or otherwise; and (iii) any and all
deferrals, renewals, extensions or refinancing of, or amendments, modifications of supplements to, any liability of the kind described in any of the preceding  clauses (i) or (ii). 

        "Initial Public Equity Offering" means a firm commitment underwritten initial sale to the public of Standard Common Stock of the Company
(or a parent corporation holding all of the issued and outstanding shares of the capital stock of the Company) by underwriter(s) of national standing pursuant to an effective registration statement
under the Securities Act (other than on Form S-8 or any other form relating to securities issuable under any benefit plan of the Company or such parent corporation). 

        "Investor Registrable Securities" means the Registrable Securities deemed held by the Investors as a result of their purchase of the
Purchased Shares. 

        "Lien" means any interest in, or claim against, property relating to an obligation owed to, or claim by, a Person other than the owner of
the property, whether such interest is based on the common law, statute or contract, and including but not limited to any security interest lien arising from a mortgage, encumbrance, pledge,
conditional sale or trust receipt or a lease, consignment or bailment for security purposes, any rights of first refusal, charges, claims, liabilities, limitations, conditions, restrictions or other
adverse claims. 

        "Lucent Agreements" means the General Purchase Agreement, effective as of June 6, 2005, by and between Lucent
Technologies Inc. and MetroPCS Wireless, Inc., as it may be amended from time to time. 

        "Madison Dearborn" means Madison Dearborn Capital Partners IV, L.P., and its Affiliates. 

        "Material Adverse Effect" means a material adverse effect on (a) the business, operations, affairs, financial condition, assets or
properties of the Company and its Subsidiaries taken as a whole, or (b) the ability of the Company to perform its obligations under the Series D Purchase Agreement, the Series E
Purchase Agreement, this Agreement, the Series D Preferred Stock or the Series E Preferred Stock, or (c) the validity or enforceability of the Series D Purchase Agreement,
the Series E Purchase Agreement or this Agreement. 

        "Person" means an individual, partnership, corporation, limited liability company, association, trust, unincorporated organization, or a
government or agency or political subdivision thereof. 

        "Preferred Stock" means the Series D Preferred Stock and the Series E Preferred Stock, together with any other shares of
capital stock issued or issuable with respect thereto (whether by way of a stock dividend, stock split or in exchange for or in replacement or upon conversion of such shares or otherwise in connection
with a combination of stock, recapitalization, merger, consolidation or other reorganization). 

        "Preferred Stockholders" means the Series C Preferred Stockholders, the Series D Preferred Stockholders and the
Series E Preferred Stockholders. 

        "Prior Stockholders Agreement" means the Amended and Restated Stockholders Agreement dated as of July 17, 2000, as amended by
Amendment No. 1 thereto dated as of November 13, 2000, and as further as amended by Amendment No. 2 thereto dated as of January 4, 2001, by and among the Company, the
Class A Stockholders (consisting of Roger D. Linquist and C. Boyden Gray), the Class B Stockholders listed on Schedule 1 thereto,
the Class C Stockholders listed on Schedule 2 thereto, the Series C Preferred Stockholders listed on  Schedule 3 thereto, and the
Series D Preferred Stockholders listed on Schedule 4  thereto, as the same may be further amended or supplemented from time to time.
 

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        "Purchased Shares" means, the shares of Standard Common Stock, Series D Preferred Stock and Series E Preferred Stock
purchased by the Investors pursuant to the Series E Purchase Agreement and the Tender Offer. 

        "Qualifying Public Offering" means an Initial Public Equity Offering that (i) results in aggregate gross proceeds to the issuer of
at least $100,000,000, and (ii) is consummated at a price per share to the public that when multiplied by the number of shares of Standard Common Stock issued upon
conversion of any and all shares of Series D Preferred Stock (such conversion having occurred at any time upon or prior to such offering), results in a product that equals or exceeds
$700,000,000. 

        "Registrable Securities" means (i) any shares of Standard Common Stock now or hereafter held by a Stockholder, (ii) any
shares of Standard Common Stock subject to acquisition by a Preferred Stockholder upon conversion of the shares of Preferred Stock (it being understood that if a Preferred Stockholder owns Preferred
Stock, the Preferred Stockholder may exercise its registration rights hereunder by converting the shares to be sold under the relevant registration statement into Standard Common Stock as of the
closing of the relevant offering and shall not be required to cause such Preferred Stock to be converted to Standard Common Stock until and unless such closing occurs) and (iii) any securities
issued and issuable with respect to any such shares described in clauses (i) or (ii) above by way of a stock dividend or stock split or in connection with a combination of stock,
recapitalization, merger, consolidation or other reorganization; provided, however, that, notwithstanding anything to the contrary contained herein,
"Registrable Securities" shall not include at any time securities (i) sold in a registered sale pursuant to an effective registration statement under the Securities Act, (ii) sold to the
public pursuant to Rule 144 under the Securities Act or (iii) which could then be sold in their entirety pursuant to Rule 144(k) under the Securities Act. 

        "SEC" means the Securities and Exchange Commission and any successor federal agency performing similar regulatory functions. 

        "Securities Act" means the Securities Act of 1933, as amended from time to time, and the rules and regulations promulgated thereunder. 

        "Senior Secured Credit Facility" means that certain $500,000,000 First Lien Credit Agreement, dated as of May 31, 2005, among
MetroPCS Inc., MetroPCS Wireless, Inc. as Borrower, the Several Lenders for Time to Time Parties Hereto, Bear Steams Corporate Lending Inc., as Administrative Agent and
Syndication Agent, Bear, Stearns & Co. Inc., as Sole Lead Arranger and Sole Bookrunner and Merrill Lynch, Pierce, Fenner & Smith Incorporated as Documentation Agent, as amended
and supplemented from time to time (including any Incremental Commitments, as defined therein), and that certain $250,000,000 Second Lien Credit Agreement, dated as of May 31, 2005, among
MetroPCS, Inc., MetroPCS Wireless, Inc., as Borrower, the Several Lenders from Time to Time Parties Hereto, Merrill Lynch Capital Corporation, as Administrative Agent, Bear Stearns
Corporate Lending Inc., as Syndication Agent, and Bear, Stearns & Co. Inc., as Sole Lead Arranger and Sole Bookrunner, as amended and supplemented from time to time (including any
Incremental Commitments as defined therein). 

        "Series D Purchase Agreement" means the Securities Purchase Agreement, dated as of July 17, 2000, as amended by Amendment
No. 1 thereto dated as of November 13, 2000, as further amended by Amendment No. 2 thereto dated as of December 12, 2000, as further amended by Amendment No. 3
thereto dated as of December 19, 2000, and as further amended by Amendment No, 4 thereto dated as of January 4, 2001, by and among MetroPCS, Inc., its Subsidiaries listed on  Schedule 2  thereto and each of the Purchasers listed on Schedule 1 thereto, as the same
may be further amended or supplemented
from time to time. The Series D Purchase Agreement provides, among other matters, for the issuance and sale of the Series D Preferred Stock. 

        "Series E Closing" is defined in Section 2.1 of the Series E Purchase Agreement. 

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        "Standard Common Stock" has the meaning set forth in the recitals to this Agreement. 

        "Subsidiary" means with respect to any Person, any corporation, partnership, limited liability company, association, joint venture or
other business entity of which more than 50% of the total voting power of shares of stock or other ownership interests entitled (without regard to the occurrence of any contingency) to vote in the
election of the Person or Persons (whether directors, managers, trustees or other Persons performing similar functions) having the power to direct or cause the direction of the management and policies
thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person or a combination thereof;  provided, in determining the
percentage of ownership interests of any Person controlled by another Person, no ownership interest in the nature of a
"qualifying share" of the former Person shall be deemed to be outstanding. 

        "TA Associates" means TA Associates, Inc. and its Affiliates. 

        "Tender Offer" shall have the meaning set forth in the Series E Purchase Agreement. 

        "Transfer" means any direct or indirect transfer, donation, sale, assignment, pledge, hypothecation, grant of a security interest in or
other disposal or attempted disposal of all or any portion of a security or of any rights, "Transferred" means the accomplishment of a Transfer. 

        "Transferee" means the recipient of a Transfer. 

        Section 1.4    Representations and Warranties.    Each of the Stockholders severally (and not jointly)
represents and warrants to each other party to this Agreement that each of the following statements is true and correct as of the date hereof and will survive the date hereof: 

        (a)    Organization and Power.    If an entity, such Stockholder is duly organized, validly existing and in good
standing under the laws of its jurisdiction of formation and has all requisite power and authority to carry on its business as now conducted, and to execute, deliver and perform its obligations under
this Agreement. 

        (b)    Authorization and Binding Effect.    The execution and delivery of this Agreement has been duly authorized by
all requisite action on the part of such Stockholder and constitutes a valid and binding agreement of such party, enforceable against it in accordance with its terms, except to the extent that
enforcement thereof may be limited by (i) bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in effect relating to creditors' rights generally and
(ii) the availability of equitable remedies which remain subject to the discretion of a court (regardless of whether enforceability is considered in a proceeding of law or equity). 

        Section 1.5    Covenants of the Stockholders.    From and after the date hereof and so long as such
Stockholder
owns capital stock of the Company, each of the Stockholders hereto covenants and agrees as follows: 

        (a)    Attributable Interests.    Such Stockholder shall not acquire an interest or hold the positions of officer,
director or management committee member, in any other Commercial Mobile Radio Service (as that term is defined from time to time by the FCC) applicant or licensee if such actions would cause the
Company, any Subsidiary of the Company or any applicant or licensee in which the Company or any Subsidiary of the Company, directly or indirectly, holds 50% or more of the beneficial interests
("50% Beneficially Owned Enterprise") to subject the Company, any Subsidiary of the Company or 50% Beneficially Owned Enterprise to the loss of any FCC
license or financial or other penalties imposed by the FCC. In addition, no Stockholder with an interest in the Company will acquire interests in or hold a position as an officer or director in any
other Commercial Mobile Radio Service applicant or licensee in the same geographic market as any license held by or applied for by the Company, its Subsidiaries, or any 50% Beneficially Owned
Enterprise if such Stockholder's interests under the FCC's rules would cause the Company, its 

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Subsidiaries,
or any 50% Beneficially Owned Enterprise to be disqualified from holding FCC Licenses for any particular geographic market. Such Stockholder shall cooperate with the Company in
(i) determining the Stockholder's compliance with this paragraph and (ii) in the event of a proposed action that would result in or has resulted in noncompliance, executing the measures
reasonably necessary to cure or avoid such noncompliance consistent with applicable FCC rules and policies. 

        (b)    Foreign Ownership.    Such Stockholder shall not cause the Company, its Subsidiaries, or any 50% Beneficially
Owned Enterprise to be in violation of the foreign ownership restrictions contained in the Communications Act of 1934, as amended, and the applicable FCC foreign ownership rules and policies as they
pertain to the Stockholder's particular investment for as long as such restrictions apply to the licenses held (directly or indirectly) by the Company, its Subsidiaries, or any 50% Beneficially Owned
Enterprise. In addition, such Stockholder shall cooperate with the Company (at its sole expense) in (i) the Company's preparation and filing of a waiver request of such foreign ownership
restrictions, as deemed necessary and appropriate by the Company, (ii) determining the aggregate total foreign ownership interests of the Company and (iii) complying with any measure
necessary for the Company to remain in compliance with such foreign ownership restrictions. 

        Section 1.6    Covenants of the Company.    From and after the date hereof, the Company covenants and
agrees as
follows: 

        (a)   As
long as a Stockholder (together with its Affiliates and Subsidiaries) continues to hold at least (i) 25% of the Common Stock held by such Stockholder as of the
date hereof, or (ii) 2% of the total fully diluted equity of the Company (calculated assuming the exercise, and conversion to, Standard Common Stock of all the outstanding capital stock,
options and warrants issued by the Company), the Company shall permit any representatives designated by any such Stockholder, upon reasonable written notice to the officers of the Company and during
normal business hours, to (i) visit and inspect any of the properties of the Company and its Subsidiaries, (ii) examine the corporate and financial records of the Company and its
Subsidiaries and make copies thereof or extracts therefrom and (iii) discuss the affairs, finances and accounts of the Company and its Subsidiaries with the directors, officers and independent
accountants of the Company and its Subsidiaries; provided, however, that any information regarding the Company or any Subsidiary or Affiliate of the
Company shall be kept confidential as provided in Section 7.11 hereof. 

        (b)   Where
a Stockholder is caused to have an interest that exceeds any applicable FCC ownership limitations or other applicable FCC restrictions then in effect as a result
of the actions or omissions by one or more other Stockholders or by the Company, if requested by the Stockholder, the Company and the other Stockholders shall cooperate with such Stockholder in
undertaking the measures reasonably necessary to cause such Stockholder to come into compliance with the applicable FCC rules and policies then in effect, provided such measures would not result in a
Material Adverse Effect. 

        (c)   The
Company shall take all necessary steps to comply with the alien ownership restrictions contained in the Communications Act of 1934, as amended, and the applicable
FCC alien ownership rules and policies as they pertain to Stockholders' particular investment for as long as such restrictions apply to licenses held (directly or indirectly) by the Company, its
Subsidiaries, and any 50% Beneficially Owned Enterprise. 

ARTICLE 2    RIGHTS AND OBLIGATIONS OF STOCKHOLDERS AND DIRECTORS  

        Section 2.1    Rights and Obligations of the Class A Stockholders    

        (a)    Voting Rights.    Until a Class A Voting Termination Event (as defined below) has occurred, the
Class A Stockholders as a class shall have the right to vote 50.1% of the Company's 

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voting
interests and to elect five members of the Board of Directors (who will represent five votes of the Board of Directors) as provided in Section 2.1(a)  hereof. A "Class A,
Voting Termination Event" shall occur upon the later of (i) December 31, 2005, or
(ii) the receipt by the Company by Final Order of any required FCC approvel associated with the Class A Voting Termination Event and the consummation of the approved transaction. The
Company shall file an application seeking the FCC approval associated with a Class A Voting Termination Event on the earlier of (i) 10 business days following the grant of all FCC
Licenses to Royal Street Communications, LLC by Final Order, or (ii) November 1, 2005. Notwithstanding any provision to the contrary herein, upon a Class A Voting Termination
Event, this ARTICLE 2 and Section 7.1 shall each be amended and restated in their entirety to
read as set forth on Exhibit B hereto. 

        (b)    Designation of Directors.    The Class A Stockholders agree to vote all of their Class A Common
Stock of the Company and to take all other actions necessary to cause the election of up to five directors to the Board of Directors in the following manner: (i) up to two directors designated
by Linquist, (ii) up to one director designated by Gray, and (iii) up to two directors jointly designated by Linquist and Gray (collectively, the "Class A
Common Stock Directors"). The Class A Stockholders shall vote all their Class A Common Stock to elect the individuals so designated to be directors. If the
Class A Stockholder or Class A Stockholders that designated a particular director give written notice to the other Class A Stockholders of a desire to remove that director, the
Class A Stockholders shall vote all their Class A Common Stock in favor of removing that director. If for any reason any director designated by the Class A Stockholders ceases to
serve as a director, the Class A Stockholder or Class A Stockholders that designated that director shall promptly designate an individual (who is legally qualified as defined from time
to time by the FCC) to fill the vacancy so created for the unexpired term of such prior director and the Class A Stockholders shall vote all their shares of Class A Common Stock in
accordance with this Section 2.1(b) for the individual designated to fill the vacancy. Each Class A Common Stock Director shall have one
vote on each matter submitted to a vote of the Board of Directors; provided, that if at any time there are less than five Class A Common Stock
Directors, (i) the Class A Common Stock Directors collectively shall be entitled to cast five votes on each matter submitted to a vote of the Board of Directors and (ii) each
Class A Common Stock Director shall be entitled to cast a number of votes equal to a fraction, the numerator of which shall be equal to five, and the denominator of which shall be equal to the
total number of Class A Common Stock Directors then in office as of the time a given vote of the Board of Directors is taken. The Class A Common Stock Directors shall be designated as
provided in Section 2.2(c) hereof; provided that the foregoing Board voting rights of each
Class A Common Stock Director shall be subject to any applicable provisions of the Company's By-laws, the Charter and Delaware law, as applied with Delaware law controlling any
conflicting provisions of the Company's By-laws, the Charter and this Agreement, but in no event, until a Class A Voting Termination Event shall the Class A Common Stock
Directors have a right to vote less than 50.1% of the voting interests of the Board of Directors on all matters. 

        (c)    Proxy.    If any Class A Stockholder fails or refuses to vote his Class A Common Stock or to
designate a director as provided in this Section 2.1, and such failure or refusal continues for more than 30 days beyond the date on which
the vote is scheduled or the director vacancy occurs, without further action by such Class A Stockholder, each other Class A Stockholder shall have an irrevocable proxy to so vote those
shares in accordance with this Agreement. 

        (d)    Appointment and Removal.    Pursuant to the Charter and the By-Laws of the Company, the
Class A Common Stock Directors, in exercising their majority vote of the Board, shall have the authority to appoint and remove all officers and senior executives of the Company, including but
not limited to the Chief Executive Officer. 

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        Section 2.2    Rights and Obligations of the Standard Common Stockholders and the Preferred Stockholders.    

        (a)    Preferred Stockholders.    The Preferred Stockholders shall have voting rights on an as-converted
to Common Stock basis on all matters submitted to the Standard Common Stockholders. Accordingly, only for purposes of this Section 2.2, it is
understood and agreed that (i) the term "Standard Common Stock" shall include the shares of Standard Common Stock issuable upon conversion of any shares of Preferred Stock at the time of any
such vote or determination, and (ii) the term "Standard Common Stockholders" shall include the Preferred Stockholders. 

        (b)    Voting Rights.    Except as otherwise specifically provided in this Agreement, the Standard Common Stockholders
as a class shall have the right to vote 49.9% of the Company's voting interests on all matters. The Standard Common Stockholders shall elect up to five (5) members of the Board of Directors
(each, a "Standard Common Stock Director"). Each Standard Common Stock Director shall have one vote on each matter submitted to a vote of the Board of
Directors; provided, however, that, if at any time there are more than four Standard Common Stock Directors, (i) the Standard Common Stock
Directors collectively shall be entitled to cast no more than four votes on each matter submitted to a vote of the Board of Directors and (ii) each Standard Common Stock Director shall be
entitled to cast a number of votes equal to a fraction, the numerator of which shall be equal to four, and the denominator of which shall be equal to the total number of Standard Common Stock
Directors then in office as of the time a given vote of the Board of Directors is taken. The Standard Common Stock Directors, shall be designated as provided in  Section 2.2(c) hereof; provided that the foregoing Board voting rights of each Standard Common
Stock Director shall be subject to any applicable provisions of the Company's By-laws, the Charter and Delaware law, as applied with Delaware law controlling any conflicting provisions of
the Company's By-laws, the Charter and this Agreement, but in no event, until a Class A Voting Termination Event shall the Standard Common Stock Directors have a right to vote in
excess of 49.9% of the voting interests of the Board of Directors in all matters. 

        (c)    Designation of Directors.    The Standard Common Stockholders agree to vote all of their shares of Standard
Common Stock and Preferred Stock and to take all other actions necessary to cause the election or appointment and continuance in office of the following four or five individuals as the Standard Common
Stock Directors: 

        (i)    One
individual designated by Accel IV L.P. (together with its Affiliates, "Accel"); 

        (ii)   One
individual designated by MC Venture Partners (together with its Affiliates, "MC Partners"); 

        (iii)  One
individual designated by the Series D Preferred Stockholders holding a majority of the outstanding shares of Standard Common Stock held by the
Series D Preferred Stockholders; provided that each of the Standard Common Stock Directors and each of the Board Observers (as defined below),
who in each case is serving in such role immediately prior to such designation, shall have the right to select one name of an individual to be considered for such designation by the Series D
Preferred Stockholders; and 

        (iv)  (A)
If TA Associates and Madison Dearborn each purchase at least $25 million, but less than $175 million of Purchased Shares, one individual jointly
designated by TA Associates and Madison Dearborn; provided that if each of TA Associates and Madison Dearborn at any time holds less than 60% of its
Purchased Shares (determined on an as-converted basis), this right will terminate immediately, and if only one of TA Associates or Madison Dearborn at any time holds 60% or more of its
Purchased Shares (determined on an as-converted basis), such individual shall be designated solely by such Investor; provided, further, that
if the Put 

8

 

Right
(as defined in Section 5.6 of the Series E Purchase Agreement) is at any time exercised by any Investor, this right will terminate immediately; or 

        (B)  if
TA Associates and Madison Dearborn each purchase at least $175 million of Purchased Shares, (i) one individual designated by TA Associates until TA
Associates no longer holds 60% of its Purchased Shares (determined on an as-converted basis), at which time such right shall terminate immediately, and (ii) one individual
designated by Madison Dearborn until Madison Dearborn no longer holds 60% of its Purchased Shares (determined on an as-converted basis), at which time such right shall terminate
immediately. 

For
purposes of this Agreement (including, without limitation, the supermajority voting rights under Section 3.1 of this Agreement), the
"Outside Directors" shall mean, collectively, the directors elected or appointed pursuant to the designation by Accel and MC Partners. The directors
elected or appointed
pursuant to the designation by the Series D Preferred Stockholders, TA Associates and Madison Dearborn, pursuant to clauses (iii) and  (iv) above,
shall not be included as "Outside Directors" for purposes of this Agreement. 

        Notwithstanding
any provision to the contrary herein, the right of each of Accel and MC Partners to designate one director as an Outside Director, respectively, pursuant to this  subsection (c) shall continue
hereunder only so long as such Stockholder (together with its Affiliates or Subsidiaries) owns Series D
Preferred Stock and Standard Common Stock that is equal to at least (i) 4% of the total fully diluted equity of the Company (calculated assuming the exercise, and conversion to, Standard Common
Stock of all the outstanding capital stock, options and warrants issued by the Company) or (ii) 50% of the total Series D Preferred Stock (or the Standard Common Stock issuable upon
conversion thereof) purchased by such Person pursuant to the Series D Purchase Agreement. 

        (d)    Visitation Rights.    Whitney Acquisition II, Corp., Battery Ventures, First Plaza Group, Clarity Partners,
L.P., Technology Ventures, Primus Venture Partners, Inc., Columbia Capital Equity Partners III (QP), L.P., Wachovia Capital Partners 2001, TA Associates and Madison Dearborn, in each case
(including any of their respective Affiliates), shall be entitled to designate one individual to serve as an observer of all Board meetings and proceedings (each, a "Board
Observer") and upon the appointment of such individual as a Board Observer by either a resolution of the Board or Stockholders, such individual shall be entitled to attend all
non-executive meetings of the Board and receive all non-executive materials distributed to the Board. If the Board fails to timely adopt a resolution that appoints each of the
individuals so entitled to serve as a Board Observer, then the Standard Common Stockholders agree to vote all of their shares of Standard Common Stock and to take all other actions necessary to cause
the appointment of each such individual as a Board Observer. Notwithstanding any provision to the contrary herein, the foregoing right to designate an individual as a Board Observer pursuant to this  subsection (d)
shall continue hereunder only so long as such Stockholder (together with its Affiliates or Subsidiaries) owns shares of Standard
Common Stock that is equal to at least 50% of the total shares of Standard Common Stock purchased by such Person pursuant to the Series D Purchase Agreement or the Series E Purchase
Agreement (including any shares of Standard Common Stock and Series D Preferred Stock purchased pursuant to the Tender Offer contemplated thereby), as the case may be. The Board of Directors
shall have the right, in its discretion, to grant Board visitation rights to other Persons. 

        (e)    Voting Agreement.    Each Standard Common Stockholder agrees to vote all of his, her or its shares of Standard
Common Stock for the removal of any director designated pursuant to Section 2.2(c) upon the request of the party designating such director and
for the election to the Board of Directors of a substitute designee by such party in accordance with the provisions of Section 2.2(c). Each
Standard Common Stockholder further agrees to vote all of his, her or its shares of Standard Common Stock in such manner as shall be necessary or appropriate to ensure 

9

 

that
any vacancy on the Board of Directors corresponding to any director designated pursuant to Section 2.2(c) occurring for any reason shall be
filled only in accordance with the provisions of Section 2.2(c). 

        Section 2.3    Director Compensation.    The Company shall pay each director, and any Board Observer, for
his
or her reasonable travel and other reasonable out-of-pocket expenses incurred in connection with attending meetings of the Board of Directors or otherwise in connection with
his or her service as a member of the Board of Directors. All directors who are not employees of the Company will be equally compensated for their service as a member of the Board of Directors;  provided,
however, that the Company may pay the chairperson and each member of a committee of the Board different amounts of compensation as determined
by the Board. The Charter and By-Laws of the Company will provide for exculpation and indemnification of the directors and limitations on the liability of the directors to the fullest
extent permitted under Delaware state law, and the Company shall obtain and maintain directors' and officers' liability insurance coverage, on terms satisfactory to the Preferred Stockholders holding
a majority of the Standard Common Stock held by the Preferred Stockholders, covering, among other things, violations of federal or state securities laws, and remaining in full force and effect for
three years after each director ceases to serve as a director of the Company. 

        Section 2.4    Director and Board Observer Obligations.    Each director and Board Observer shall abide by
any
and all procedures established by the Company in order for the Company to comply with the FCC's Auction Anti-Collusion Rule (47 C.F.R. § 1.2105(c)). By way
of example, and not limitation, if a director or Board Observer has a 10 percent or greater equity interest, or is a key officer, director or controlling interest holder, in another entity that
submits an FCC auction application for licenses in any of the same geographic areas where the Company is eligible to bid in the same auction, such director or Board Observer shall abide by all
measures established by the Company to prevent the Company and such director or Board Observer from cooperating or collaborating with respect to the auction, or discussing with each other in any
manner the substance of their own, or each others, or any other competing applicants' bids or bidding strategies or discussing or negotiating settlement agreements, throughout the period that the
Anti-Collusion Rule applies. The measures established by the Company may include, but need not be limited to, withholding the distribution to the director or the Board Observer of
information distributed to other Board members that, in the Company's judgment, could be deemed to constitute information pertaining to "bids or bidding strategies" (as defined by the FCC rules in
effect from time to time) or requesting that the director or Board Observer recuse themselves from any discussions to which the Anti-Collusion Rule may apply. The Stockholders agree to
promptly remove any director or Board Observer that fails to abide by this section. 

ARTICLE 3    SUPERMAJORITY VOTING RIGHTS  

        Section 3.1    General    

        (a)    Preferred Stockholder Voting Rights.    In addition to any other vote required by law, this Agreement, the
Charter or the By-Laws of the Company, the Company shall not, other than in the ordinary course of business, take any of the following actions, whether directly or indirectly, unless such
action has been (a) approved by a majority of the directors then in office, including the affirmative vote
of each of the Outside Directors or (b) approved by a majority of the directors then in office and the holders of at least 662/3% of the Series D Preferred Stock and the
Series E Preferred Stock, voting together as a single class on an as-converted to Common Stock basis, then outstanding: 

        (i)    any
amendment to the Charter or By-Laws of the Company, unless such amendment is necessary to comply with the FCC rules; 

10

  

        (ii)   any
merger or consolidation by or with the Company or any of its Subsidiaries (other than any merger or consolidation by or with the Company and any Subsidiary that is
wholly-owned by the Company (directly or indirectly) or by or with any two Subsidiaries that are wholly-owned by the Company (directly or indirectly); 

        (iii)  a
sale of all or substantially all the Company's assets; 

        (iv)  any
voluntary dissolution or liquidation of the Company; 

        (v)   any
issuance of equity of the Company or any of its Subsidiaries, except (i) in connection with a Qualifying Public Offering by the Company, (ii) issuances
of additional equity to persons who are then Stockholders of the Company (provided that all then current Stockholders are entitled to purchase an amount
of equity equal to the percentage of equity owned by such Stockholder immediately prior to such issuance (treating all warrants as having been exercised) on equal terms (except that any Stockholder
may pay the cash equivalent of any non-cash consideration based upon its fair market value as determined by the Board, including each of the Outside Directors), and (iii) issuances
by any Subsidiary to the Company or any other Subsidiary that is wholly-owned by the Company (directly or indirectly); 

        (vi)  the
declaration or payment of dividends by the Company (other than with respect to the Series D Preferred Stock and the Series E Preferred Stock); 

        (vii) any
arrangement or transaction between the Company or any of its Subsidiaries and any Stockholder that owns more then 5% of the Common Stock or any entity owned or
controlled by any such Stockholder, any officer or director of the Company; 

        (viii) any
determination of compensation or benefits of any executive officer of the Company; or 

        (ix)  the
incurrence of additional Indebtedness by the Company or any of its Subsidiaries in excess of $10 million, except for any Indebtedness of the Company pursuant
to the Lucent Agreements and/or Senior Secured Credit Facility. 

        (b)    Series D Preferred Stockholder Voting Rights.    In addition to any other vote required by law, this
Agreement, the Charter or the By-Laws of the Company, the Company shall not take any of the following actions, whether directly or indirectly, unless such action has been approved by the
affirmative vote of the holders of at least 662/3% of the Series D Preferred Stock then outstanding on an as-converted to Common Stock basis: 

        (i)    any
issuances of Securities (as hereinafter defined) by the Company that are senior to, or on parity with, the Series D Preferred Stock as to liquidation
preferences, sale preferences, merger preferences, redemption rights, or dividend rights (other than (A) Securities that are on parity in all respects with the Series D Preferred Stock
as to liquidation preferences, sale preferences, merger preferences, redemption rights, and dividend rights ("Series D Parity Securities") but
sold (x) at a price per share of Standard Common Stock (determined assuming conversion of the Series D Preferred Stock and such Series D Parity Securities into Standard Common
Stock on the day of issuance of such Series D Parity Securities at the then applicable conversion ratio) higher than the then applicable Conversion Price (as defined in the Charter) of the
Series D Preferred Stock or (y) if the Series D Parity Securities are not convertible into Standard Common Stock directly or indirectly, at any price per share determined by the
Board of Directors, and (B) Series D Parity Securities with an aggregate purchase price of up to $50 million sold by the Company at a price per share of Standard Common Stock
(determined assuming conversion of the Series D Preferred Stock and such Series D Parity Securities into Standard Common Stock on the day of issuance of such Series D Parity
Securities at the then applicable conversion ratio) equal to or lower than 

11

 

the
then applicable Conversion Price (as defined in the Charter) of the Series D Preferred Stock; or 

        (ii)   any
amendment to the terms of the Series D Preferred Stock set forth in the Charter, other than in connection with the issuance of Series D Parity
Securities in a manner consistent with Section 3.1(b)(i) above. 

        (c)    Series E Preferred Stockholder Voting Rights.    In addition to any other vote required by law, this
Agreement, the Charter or the By-Laws of the Company, the Company shall not take any of the following actions, whether directly or indirectly, unless such action has been approved by the
affirmative vote of the holders of at least 662/3% of the Series E Preferred Stock then outstanding; 

        (i)    any
issuances of Securities (as hereinafter defined) by the Company that are senior to, or on parity with, the Series E Preferred Stock as to liquidation
preferences, sale preferences, merger preferences, redemption rights, or dividend rights (other than (A) Securities that are on parity in all respects with the Series E Preferred Stock
as to liquidation preferences, sale preferences, merger preferences, redemption rights, and dividend rights ("Series E Parity Securities") but
sold (x) at a price per share of Standard Common Stock (determined assuming conversion of the Series E Preferred Stock and such Series E Parity Securities into Standard Common
Stock on the day of issuance of such Series E Parity Securities at the then applicable conversion ratio) higher than the then applicable Conversion Price (as
defined in the Charter) of the Series E Preferred Stock or (y) if the Series E Parity Securities are not convertible into Standard Common Stock, directly or indirectly, at any
price per share determined by the Board of Directors, and (B) Series E Parity Securities with an aggregate purchase price of up to $50 million sold by the Company at a price per
share of Standard Common Stock (determined assuming conversion of the Series E Preferred Stock and such Series E Parity Securities into Standard Common Stock on the day of issuance of
such Series E Parity Securities at the then applicable conversion ratio) equal to or lower than the then applicable Conversion Price (as defined in the Charter) of the Series E Preferred
Stock; 

        (ii)   becoming
subject to an agreement which would restrict the Company from performing its obligations under the terms of the Series E Preferred Stock; 

        (iii)  any
payment of cash dividends on the Series D Preferred Stock held by the investors (including any dividends accrued and unpaid prior to the date hereof) or on
the Series E Preferred Stock; and 

        (iv)  any
amendment to the terms of the Series E Preferred Stock set forth in the Charter, other than in connection with the issuance of Series E Parity
Securities in a manner consistent with Section 3.1(c)(i) above. 

        Section 3.2    Termination.    Upon the consummation of a Class A Voting Termination Event, the
provisions of Section 3.1(a) will no longer be applicable. 

        Section 3.3    Affiliated Transactions.    If no Class A Common Stock is issued and outstanding, then
in
addition to any other vote or approval required by law, this Agreement, the Certificate of Incorporation or the By-laws of the Company, the Company shall not, other than in the ordinary
course of business, enter into any arrangement or transaction between the Company or any of its Subsidiaries and any officer, director, or Stockholder holding 5% or greater of the fully diluted
capital stock of the Company, unless such arrangement or transaction shall be approved by a majority of the disinterested directors of the Company. 

12

 

ARTICLE 4    TRANSFERS; FIRST REFUSAL; CO-SALE; OTHER  

        Section 4.1    General Prohibition.    As used in this Agreement, the term
"Securities" includes all shares of capital stock of the Company and any other securities of the Company exercisable or exchangeable for, or convertible
into, shares of capital stock of the Company. Each Stockholder agrees that such Stockholder will not Transfer any of such Stockholder's Securities now owned or hereafter acquired or any interest
therein (or solicit any offers to buy or otherwise acquire or take a pledge of any of its Securities) except upon execution of a Joinder Agreement in the form attached as  Exhibit A hereto by the
Transferee and except as expressly permitted hereby and strictly in compliance with the Securities Act, any laws, rules,
or regulations of any Governmental Authority, and the provisions of this ARTICLE 4. Any attempt to Transfer any Securities not made strictly in
compliance with this Agreement shall be null and void and the Company shall not give any effect in the Company's stock records to such Transfer; provided,
however, that Transfers strictly in compliance with the conditions of any of the following shall be permitted: 

        (a)   Transfers
effected pursuant to Sections 4.3 or 4.4 hereof and which are
made strictly in accordance with the procedures set forth therein; 

        (b)   Transfers
by such Stockholders (i) to and among its Affiliates; (ii) to any partner, member or employee of such Stockholder or a general partner or
managing member of such Stockholder; (iii) to a liquidating trust established for the benefit of any partners or members of such Stockholder; or (iv) to any investment fund or other
entity controlled or managed by an Affiliate of such Stockholder; 

        (c)   Transfers
by members of management of the Company of shares of their Standard Common Stock to family members or family limited partnerships or other similar entities for
estate planning purposes; provided that, if at any time from the date hereof the aggregate of such Transfers by any member of management exceeds 1% of
the fully diluted voting common stock of the Company, such member of management shall retain sole voting power over any further shares Transferred by such member of management pursuant to this  Section 4.1(c);

         (d)   Transfers by a Series D Preferred Stockholder to any of its Affiliates, including its partners, limited partners or members of such
Stockholder that are Transferees of Series D Preferred Stock in accordance with the partnership agreement or operating agreement of such Series D Preferred Stockholder; 

        (e)   Transfers
by a Series E Preferred Stockholder to any of its Affiliates, including its partners, limited partners or members of such Stockholder that are
Transferees of Series E Preferred Stock in accordance with the partnership agreement or operating agreement of such Series E Preferred Stockholder; 

        (f)    Transfers
of Series E Preferred Stock by a Series E Preferred Stockholder to the Company pursuant to Section 5.6 of the Series E Purchase
Agreement; and 

        (g)   Transfers
pursuant to the Tender Offer by a Stockholder (other than the Investors) to the Investors or any co-investors as approved pursuant to the
Series E Purchase Agreement. 

        Any
permitted Transferee described in the preceding clauses (b), (c),  (d), (e)
, (f) and  (g) shall be referred to herein as a "Permitted Transferee."
Notwithstanding anything to the
contrary in this Agreement or any failure to execute a Joinder Agreement as contemplated hereby, 

        Permitted
Transferees shall take any shares so Transferred subject to all provisions of this Agreement as if such shares were still held by the transferor, whether or not they so agree
with the transferor and/or the Company. Without limitation of the foregoing, in connection with any otherwise permitted Transfer of Securities that are restricted Securities and are subject to any
stock restriction agreement, any Transferee of any such Securities shall agree in writing to be bound by the terms of any 

13

 

such
stock restriction or similar agreement, including, without limitation, any repurchase or similar right contained therein. 

        Section 4.2    FCC Restrictions on Transfer.    Subject to the limitations of this  ARTICLE 4 and the terms of the applicable Securities, a Stockholder may Transfer all or any portion of its Securities to any other person only so long
as such Transfer would not cause the Company or any other Stockholder to violate any applicable laws or regulations of the FCC pertaining to the assignment or transfer of control of FCC authorizations
or violate Foreign Ownership Requirements (as defined in the Certificate of Incorporation). Each Stockholder shall cooperate with the Company, and the Company shall cooperate with the Stockholder in
(a) determining the Stockholder's compliance with this paragraph and (b) in the event the proposed action would result in noncompliance, executing the measures reasonably necessary to
avoid such noncompliance consistent with applicable FCC rules and policies. In the event prior consent of a Governmental Authority is required, the Company and the stockholders shall cooperate to make
such necessary filing with the Governmental Authority and no Transfer shall be consummated until such consent or approval of the Governmental Authority is received by Final Order. 

        Section 4.3    Right of First Refusal.    

        (a)   If
at any time any Stockholder wishes to Transfer any shares of capital stock of the Company (prior to a Class A Voting Termination Event, excluding
Class A Common Stock) owned by him or it other than to a Permitted Transferee (such Stockholder desiring to Transfer Securities being referred to herein as a "Selling
Stockholder"), then such Selling Stockholder shall deliver written notice of its proposal to Transfer such capital stock (a "Notice of
Intention"), accompanied by a copy of an agreement relating to such Transfer with a third party, including their identity, the purchase price and all material terms (the
"Sale Proposal"), to each of the other Stockholders, setting forth (x) such Selling Stockholder's agreement to make such Transfer (which shall be
for cash only), (y) the number and class of Security of the Company agreed to be Transferred (the "Offered Securities" and, if the Offered
Securities are Standard Common Stock the "Offered Common Stock" or, if the Offered Securities are
Preferred Stock, the "Offered Preferred Stock") and (z) the price at which such Selling Stockholder has agreed to (or is willing to) Transfer the
Offered Securities (the "First Refusal Price") and other terms applicable thereto. 

        (b)   (i)
Upon receipt of a Notice of Intention relating to Offered Preferred Stock, the Preferred Stockholders shall then have the right of first refusal to purchase at the
First Refusal Price and on the other terms specified in the Sale Proposal all or any portion of the Offered Preferred Stock, on a pro rata basis determined pursuant to  Section 4.3(f). In the event
a Preferred Stockholder does not purchase any or all of its pro rata portion of the Offered Preferred Stock, the
remaining Preferred Stockholders shall have the first right to purchase such unpurchased Offered Preferred Stock on a pro rata basis determined pursuant to  Section 4.3(f). 

        In
the event that all of the shares of Offered Preferred Stock are not purchased by the Preferred Stockholders, the Common Stockholders shall have the right to purchase such unpurchased
Offered Preferred Stock on a pro rata basis determined pursuant to Section 4.3(f). In the event a Common Stockholder does not purchase all of its
pro-rata portion of the Offered Preferred Stock, the remaining Common Stockholders shall have the right to purchase such unpurchased Offered Preferred Stock on a pro rata basis. 

        (ii)   Upon
receipt of a Notice of Intention relating to Offered Common Stock, the Common Stockholders shall then have the right of first refusal to purchase at the First
Refusal Price and on the other terms specified in the Sale Proposal all or any portion of the Offered Common Stock, on a pro rata basis. In the event a Common Stockholder does not purchase any or all
of its pro rata portion of the Offered Common Stock, the remaining 

14

 

Common
Stockholders shall have the first right to purchase such unpurchased Offered Common Stock on a pro rata basis. 

        In
the event that all of the shares of Offered Common Stock are not purchased by the Common Stockholders the Preferred Stockholders shall have the right to purchase such unpurchased
Offered Common Stock on a pro rata basis. In the event a Preferred Stockholder does not purchase all of its pro rata portion of the Offered Common Stock, the remaining Preferred Stockholders shall
have the right to purchase such unpurchased Offered Common Stock on a pro rata basis. 

        (iii)  The
rights of the Stockholders hereunder shall be exercisable by the delivery of written notice to the Selling Stockholder (the "Notice of
Exercise"), within 30 calendar days from the date of delivery of the Notice of Intention (the "Option Period") and shall
terminate if not so exercised. The Notice of Exercise shall state the total number of shares of the Offered Securities such Stockholder is willing to purchase without regard to whether or not other
Stockholders purchase any shares of the Offered Securities. 

        (c)   If
all Notices of Intention required to be given pursuant to this Section 4.3 have been duly given and the
Stockholders do not exercise their respective options to purchase all of the Offered Securities at the First Refusal Price, then the Selling Stockholder shall have the right, subject to compliance by
the Selling Stockholder with the other provisions of this Agreement, for a period of 90 calendar days from the earlier of (i) the expiration of the Option Period pursuant to  Section 4.3(b)
with respect to such Sale Proposal or (ii) the date on which such Selling Stockholder receives notice from all Stockholders
that they will not exercise in whole or in part the options granted pursuant to Section 4.3, to sell to the third party the Offered Securities
remaining unsold at a price and on the same terms specified in the Sale Proposal; provided, that if prior approval or consent from a Governmental
Authority is required to consummate the Transfer, such Transfer shall not be consummated until such approval or consent from the Governmental Authority is received by Final Order and such 90 calendar
day period shall be extended until five business days after such receipt of a Final Order. 

        (d)   Subject
to the prior receipt of any required FCC approvals by Final Order, the consummation of any purchase and sale pursuant to  Section 4.3(b) shall take place on such date, not later than 30 calendar
days after the expiration of the Option Period pursuant to  Section 4.3(b), as the Selling Stockholder shall select. Prior to the consummation of any sale pursuant to  Section 4.3, the Selling Stockholder shall comply with this Agreement. Upon the consummation of any such purchase and sale, the Selling
Stockholder shall deliver certificates evidencing the Offered Securities sold, duly endorsed, or accompanied by written instruments of Transfer in form reasonably satisfactory to the purchaser duly
executed by the Selling Stockholder free and clear of any Liens, against delivery of the First Refusal Price. 

        (e)   In
the event that the Stockholders do not exercise their options to purchase all of the Offered Securities, and the Selling Stockholder shall not have sold the remaining
Offered Securities to the third party on the same terms specified in the Sale Proposal for any reason before the expiration of the 90-day period described in  Section 4.3(c), then such Selling
Stockholder shall not give another Notice of Intention pursuant to  Section 4.3 with respect to any proposed Transfer until at least 90 days (30 days if the Selling Stockholder is an
estate or a
testamentary trust) after such 90-day period. 

        (f)    For
the purposes of determining the allocation of Offered Securities pursuant to this Section 4.3, each Preferred
Stockholder's or Common Stockholder's, as the case may be, pro rata share of the Offered Securities shall be based on the ratio which the shares of Common Stock held by such Stockholder (as determined
in accordance with Section 1.2 hereof) bears to all of the shares of Common Stock held by the Preferred Stockholders or the Common Stockholders
(as 

15

 

determined
in accordance with Section 1.2 hereof), as the case may be, as of the date of the Sale Proposal. 

        (g)   The
rights and obligations set forth in this Section 4.3 shall terminate and cease to be effective upon the
earlier of (i) the Investors purchase of Purchased Shares with an aggregate purchase price of at least $450 million or (ii) December 31, 2005 so long as the Investors have
not exercised their Put Right (as defined in Section 5.6 of the Series E Purchase Agreement) on or prior to the expiration thereof (it being understood that this  Section 4.3(g) shall be
of no force or effect if the Put Right is exercised prior to such date). 

        Section 4.4    Co-Sale Option.    In the event that any Selling Stockholder wishes to sell all or a
portion of its shares of capital stock of the Company other than to a Permitted Transferee, and the rights of first refusal, if any, granted pursuant to Section 4.3  are not exercised with respect
to all of the Offered Securities proposed to be sold, such Selling Stockholder may Transfer such available Offered Securities only pursuant to
and in accordance with the following provisions of this Section 4.4. Prior to a Class A Voting Termination Event, the provisions of this  Section 4.4 shall not apply to a sale of Class A Common Stock. 

        (a)   With
respect to a sale of Offered Preferred Stock, each of the Preferred Stockholders other than the Selling Stockholder (collectively, with respect to a sale of Offered
Preferred Stock, the "Preferred Co-Sale Stockholders") and, with respect to a sale of Offered Common Stock, each of the Common Stockholders
and Preferred Stockholders (provided they convert their shares of Preferred Stock to be sold as Standard Common Stock prior to the sale of the Offered Common Stock) other than the Selling Stockholder
(collectively, with respect to a sale of Offered Common Stock, the "Common Co-Sale Stockholders" and together with the Preferred
Co-Sale Stockholders, the "Co-Sale Stockholders"), shall have the right to participate in the sale of the applicable Offered
Securities on the terms and conditions herein stated (the "Co-Sale Option"), which right shall be exercisable upon written notice (the
"Acceptance Notice") to the Selling Stockholder within ten days after the Selling Stockholder notifies the applicable Co-Sale Stockholders
in writing that (i) in the event Section 4.3 applies, the Stockholders have not elected to exercise their Rights of First Refusal with
respect to all of the Offered Securities or (ii) if Section 4.3 does not apply, the Selling Shareholder intends to accept an offer to sell
the Offered Securities. In the event that Section 4.3 is no longer effective, Selling Shareholder shall provide each Stockholder with a notice
containing the same information as the Notice of Intention. The Acceptance Notice shall indicate the maximum number of shares of capital stock that such Co-Sale Stockholder wishes to sell
(including the number of shares it would sell if one or more other Co-Sale Stockholders do not elect to participate in the sale) on the terms and conditions stated in the Notice of
Intention. 

        (b)   Each
of the Co-Sale Stockholders shall have the right to exercise its Co-Sale Option and sell a portion of its capital stock to be determined by
such Co-Sale Stockholder, which portion may not exceed the product obtained by multiplying (i) the number of Offered Securities that were proposed to be sold by the Selling
Stockholder pursuant to Section 4.3 (less any shares being purchased pursuant to a Right of First Refusal, if any) by (ii) a fraction, the
numerator of which is the total number of shares of Common Stock held by such Co-Sale Stockholder on the date of the Acceptance Notice (as determined in accordance with  Section 1.2 hereof) and the
denominator of which is the total number of shares of Common Stock then held as of the date of such
Co-Sale Stockholder's Acceptance Notice by the Selling Stockholder and alt Co-Sale Stockholders desiring to participate (as determined in accordance with  Section 1.2 hereof). To the extent that one
or more Co-Sale Stockholders elect to not exercise their Co-Sale Option, then
the rights of the other Co-Sale Stockholders (who exercise their Co-Sale Option) to sell shares pursuant to their Co-Sale Option shall be increased proportionately
by the full amount of shares which the non-electing Co-Sale Stockholders were entitled to sell pursuant to this  Section 4.4. 

16

 

        (c)   Within
ten days after the date by which the Co-Sale Stockholders were first required to notify the Selling Stockholder of their intent to exercise their
Co-Sale Option, the Selling Stockholder shall notify each participating Co-Sale Stockholder of the number of shares held by such Co-Sale Stockholder that will be
included in the sale and the date on which such sale will be consummated pursuant to Section 4.3(c). 

        (d)   Each
of the Co-Sale Stockholders participating in a sale under this Section 4.4 may effect its
participation in such sale hereunder by delivery to the proposed Transferee, or to the Selling Stockholder for delivery to the proposed Transferee, of one or more instruments or certificates, properly
endorsed for Transfer, representing the shares of capital stock it elects to sell therein, provided that no Co-Sale Stockholder shall be required to make any representations or warranties
or provide any indemnities in connection therewith other than with respect to its ownership of the shares of capital stock being conveyed. The number of shares of capital stock that the Selling
Stockholder may sell to the proposed Transferee shall be reduced by the number of shares of such capital stock so delivered by the participating Co-Sale Stockholders. At the time of
consummation of the sale, the proposed Transferee shall remit directly to each such Co-Sale Stockholder that portion of the sale proceeds to which each Co-Sale Stockholder is
entitled by reason of its participation therein (less any adjustments due to the conversion of any convertible securities or the exercise of any exercisable securities). 

        (e)   In
the event that the sale is not consummated within the period required by Section 4.3(c) and above  subsection (c) hereof or the proposed
Transferee fails to timely remit to each Co-Sale Stockholder its portion of the sale proceeds,
such sale shall be deemed to lapse, and any Transfers of shares of capital stock pursuant to such sale shall be deemed to be in violation of the provisions of this
Agreement unless the Selling Stockholder once again complies with the provisions of Sections 4.3 and 4.4
hereof with respect to such Offered Securities. 

        Section 4.5    Pledges.    Stockholders may directly or indirectly pledge, hypothecate or grant a security
interest in any securities of the Company only through a bona fide pledge of such securities as security for indebtedness or obligations of such Stockholder meeting all of the following criteria:
(i) the pledgee is a nationally or internationally recognized financial institution, (ii) the pledgee agrees with the Stockholders and the Company in writing that, prior to and upon
foreclosing or otherwise realizing upon the Securities so pledged, the pledgee will comply with the terms and conditions of this Agreement, and (iii) a majority of the Board of Directors have
consented to such pledge, which consent shall not be unreasonably withheld. 

        Section 4.6    Prohibited Transfers.    If any Transfer is made or attempted contrary to the provisions of
this
Agreement, such purported Transfer shall be void ab initio; the Company and the Stockholders shall have, in addition to any other legal or equitable remedies which they may have, the right to enforce
the provisions of this Agreement by actions for specific performance (to the extent permitted by law); and the Company shall have the right to refuse to recognize any Transferee as one of its
stockholders for any purpose. Without limitation to the foregoing, each of the Stockholders further agrees that the provisions of Section 7.8  shall apply in the event of any violation or threatened
violation of this Agreement. 

        Section 4.7    Restriction on Transfer.    Until a Class A Voting Termination Event, no Class A
Stockholder may Transfer any shares of Class A Common Stock to any person without the prior receipt of any required FCC approval by Final Order. 

        Section 4.8    Assignment of Rights.    Upon satisfaction of this ARTICLE
4, the rights of the Stockholders set forth in this ARTICLE 4 may be assigned to each Transferee of shares of capital
stock of the Company pursuant to the terms hereof. Each such Transferee of such shares must consent in writing to be bound by the terms and conditions of this Agreement in order to acquire the rights
granted hereunder by executing the Joinder Agreement. 

17

 

ARTICLE 5    RIGHTS TO ACQUIRE SHARES  

        Section 5.1    Pre-Emptive Rights.    The Company agrees that it will not sell or issue any shares
of capital stock of the Company, or other securities convertible into or exchangeable for capital stock of the Company, or options, warrants or rights carrying any rights to purchase capital stock of
the Company other than for full and adequate consideration as determined by the Board of Directors. Furthermore, the Company will not sell or issue any share of capital stock of the Company, or other
securities convertible into or exchangeable for capital stock of the Company, or options, warrants or rights carrying any rights to purchase capital stock of the Company, unless the Company first
submits a written offer to all the Stockholders (collectively, the "Offerees") identifying the terms of the proposed sale or issuance (including price,
number of securities and all other material terms), and offers to each Offeree the opportunity to acquire its Pro Rata Allotment (as hereinafter defined) of the securities on substantially the same
terms and conditions, including price, as those on which the Company proposes to sell or issue such securities to a third party or parties; provided,
however, that the foregoing preemptive rights shall not apply to any offer, sale or issuance of the Series D Preferred Stock pursuant to the Series D Purchase
Agreement or the Series E Preferred Stock pursuant to the Series E Purchase Agreement. Each Offeree's "Pro Rata Allotment" of such
securities shall be based on the ratio which the shares of Common Stock held by him or it (as determined in accordance with Section 1.2 hereof)
bears to all of the then issued and outstanding shares of Common Stock held by all of the Stockholders (as determined in accordance with Section 1.2  hereof) as of the date of such written offer.
The Company's offer to the Offerees shall remain open and irrevocable for a period of 30 days during which time the
Offerees may accept such offer by written notice to the Company setting forth the maximum number of shares or other securities to be acquired by any such Offeree. Any shares or securities so offered
which are not acquired pursuant to such offer may be sold by the Company but only on the terms and conditions set forth in the initial offer to the Offerees, at any time within 120 days
following the termination of the above-referenced 30-day period. 

        Notwithstanding
the foregoing, the Company may (i) issue options to purchase Common Stock and shares of restricted Common Stock to its officers, directors, and employees pursuant
to stock, benefit and option plans approved by the Board of Directors (which, prior to a Class A Voting Termination Event, shall include the approval of at least a majority (e.g., more than
50%) of the Outside Directors, in the case of stock benefit or option plans not in effect as of the date of this Agreement or in the case of amendments to such stock, benefit or option plans approved
subsequent to the date hereof) and issue shares of its Common Stock upon the exercise of any such stock options, (ii) issue securities as a result of any stock split, stock dividend,
reclassification or reorganization of the Company's capital stock pro rata based on the number of shares of capital stock of the Company then outstanding (iii) issue Standard Common Stock upon
any conversion of shares of Preferred Stock, (iv) issue Standard Common Stock upon any the exercise of any warrants that are outstanding of the date of this Agreement, and (v) issue
securities in the Company's initial public offering, each of which issuances pursuant to clauses (i) through  (v) shall not be subject to the
foregoing preemptive rights. 

        Section 5.2    Assignment of Rights.    The rights of the Stockholders set forth in this  ARTICLE 5 are transferable to each Transferee of shares of capital stock of the Company pursuant to the terms hereof. Each such subsequent holder of
such shares must consent in writing to be bound by the terms and conditions of this Agreement in order to acquire the rights granted hereunder by executing a copy of the Joinder Agreement. 

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   ARTICLE 6    REGISTRATION RIGHTS  

        Section 6.1    Demand Registration.    

        (a)    Stockholder Requests.    

        (i)    Registration of Registrable Securities.    Subject to the provisions of this  Section 6.1 and Section 6.13, the Stockholders (other than the Investors) shall have up to
three demand rights exercisable by the request of Stockholders (other than the Investors) holding at least 15% of the outstanding Registrable Securities (other than Investor Registrable Securities)
that the Company effect the registration under the Securities Act of (A) all Registrable Securities (other than Investor Registrable Securities) or (B) shares of Standard Common Stock
(other than Investor Registrable Securities) that represent at least 15% of the Registrable Securities (other than Investor Registrable Securities) originally issued to such Stockholders if
Stockholders are requesting registration of less than all of their Registrable Securities (other than Investor Registrable Securities); provided, in the
case of (A) and (B), that anticipated gross proceeds (before underwriting discounts and commissions) from the sale of the Registrable Securities be at least $20 million- Thereupon, the Company
will (A) notify all other holders of record of Registrable Securities that the Company has received a demand for registration of the Registrable Securities and (B) use its best efforts
to effect the registration under the Securities Act of the Registrable Securities which the Company has been requested to register by all participating Stockholders who elect to participate in the
registration within ten business days of the notice referenced in (A) of this sentence. 

        (ii)    Registration of Other Securities.    Except as set forth in  Section 6.1(g) below, whenever the Company shall effect a
registration made pursuant to  Section 6.1(a), no securities other than Registrable Securities shall be included among the securities covered by such registration unless
(i) the managing underwriter of such offering shall have advised the Stockholders in writing that the inclusion of such other securities would not adversely affect such offering or
(ii) the holders of a majority of the Registrable Securities electing to include shares in the registration shall have consented in writing to the inclusion of such other securities. 

        (b)    Investor Request.    

        (i)    Registration of Investor Registrable Securities.    Subject to the provisions of this  Section 6.1 and Section 6.13, at any time after one year after the date hereof, the
holders of the Investor Registrable Securities shall have the right to demand that the Company effect one registration under the Securities Act of shares of Standard Common Stock that represent at
least 15% of the Investor Registrable Securities; provided that anticipated gross proceeds (before underwriting discounts and commissions) from the sale
of the Investor Registrable Securities be at least $50 million. Thereupon, the Company will (A) notify all other holders of record of Investor Registrable Securities that the Company has
received a demand for registration of the Investor Registrable Securities and (B) use its best efforts to effect the registration under the Securities Act of the Investor Registrable Securities
which the Company has been requested to register by all participating holders of Investor Registrable Securities who elect to participate in the registration within ten Business Days of the notice
referenced in (A) of this sentence. 

        (ii)    Registration of Other Securities.    Except as set forth in  Section 6.1(g) below, whenever the Company shall effect a
registration pursuant to a demand made in accordance with  Section 6.1(b), no securities other than Investor Registrable Securities shall be included among the securities covered by such
registration
unless (i) the managing underwriter of such offering shall have advised the Investors in writing that the inclusion of such other securities 

19

 

would
not adversely affect such offering or (ii) the holders of a majority of the Investor Registrable Securities electing to include shares in the registration shall have consented in writing
to the inclusion of such other securities. 

        (c)    Registration Statement Form.    Registrations under this  Section 6.1 shall be on such appropriate registration form of
the SEC (i) as shall be selected by the Company and as shall be reasonably
acceptable to the Stockholders and (ii) as shall permit the disposition of such Registrable Securities in accordance with the intended method or methods of disposition. The Company agrees to
include in any such registration statement all information which, in the opinion of counsel to the Stockholders and counsel to the Company, is required to be included. 

        (d)    Effective Registration Statement.    A registration requested pursuant to this  Section 6.1 shall not be deemed to have
been effected and will not be considered one of the four demand registrations which may be requested by
the Stockholders (i) if a registration statement with respect thereto has not become effective, (ii) if after it has become effective, it does not remain effective for a period of at
least 180 days (unless the Registrable Securities registered thereunder have been sold or disposed of prior to the expiration of such 180 day period) or such registration is interfered
with by any stop order, injunction or other order or requirement of the SEC or other governmental agency or court for any reason and has not thereafter become effective for a period of at least
180 days, or (iii) if the conditions to closing specified in any underwriting agreement entered into in connection with such registration are not
satisfied or waived other than by reason of the failure or refusal of the Stockholders to satisfy or perform a condition to such closing. 

        (e)    Priority in Demand Registrations.    If a demand registration pursuant to this  Section 6.1 involves an underwritten
offering, the Stockholders demanding such registration along with the Stockholders electing to participate
in such registration pursuant to Section 6.1(a)(i) or 6.1(b)(i) (the
"Demand Rights Stockholders") shall cause the managing underwriter to advise the Company in writing (with a copy sent to each participating Stockholder)
as to the number of securities that can be included in such registration within a price range acceptable to the Demand Rights Stockholders (the "Maximum Offering
Amount"). Such registration will include only up to that number of Registrable Securities which does not exceed the Maximum Offering Amount, drawn pro rata from the Demand
Rights Stockholders on the percentage that the Registrable Securities held by each Stockholder is of the total number of Registrable Securities which all Stockholders hold. If any Demand Rights
Stockholder determines to include less than its pro rata share of the Maximum Offering Amount in such offering, such difference shall be divided pro rata among the other Demand Rights Stockholders in
proportion to the respective holdings of Registrable Securities of all such Demand Rights Stockholders desiring to include additional Registrable Securities. 

        (f)    Number and Size of Demand Registrations; Other Limitations.    Notwithstanding anything in this  Section 6.1 to the
contrary, the Company shall not be required to effect more than four demand registrations (other than registrations pursuant
to Section 6.1(h) hereof) at the request of the Stockholders pursuant to Section 6.1 of
this Agreement, without regard to any subsequent Transfer of any Registrable Securities by a Stockholder and the assignment of any rights hereunder pursuant to  Section 6.12. A registration shall
not count as one of the permitted demand registrations hereunder unless the Demand Rights Stockholders are
able to register and sell at least 80% of the Registrable Securities requested to be included in such registration. The Company shall not be required to effect more than one registration pursuant to  Sections 6.1(a)
, (b) or (h) hereof during any
12-month period. Moreover, no Stockholder shall be allowed to participate in any registration pursuant to Sections 6.1(a),  (b) or (h) hereof if the Standard Common Stock is admitted to trading or is listed on a national
securities exchange, the Nasdaq National Market or NASDAQ and such Stockholder is eligible to sell its Registrable Securities without volume limitations and without an effective registration
statement. 

20

 

        (g)    Incidental Company Registration.    If the Stockholders make a request for a registration pursuant to  Section 6.1(a) or
(b), the Company may determine to include securities of the same class sought
to be registered by the Stockholders for sale for the Company's own account by giving written notice thereof to the Stockholders' specifying the number of shares or amount of interests the Company
wishes to have registered, but only to the extent that the number of shares or amount of interests the Company seeks to include does not, when aggregated with the number of Registrable Securities
requested to be registered by the Stockholders, exceed the Maximum Offering Amount, and subject to the limitations of Section 6.1(a)(ii) or  (b)(ii),
as applicable. 

        (h)    Form S-3 Demand Registration.    Notwithstanding the foregoing, if the Company at any time
qualifies to register Standard Common Stock under the Securities Act by registration on Form S-3 and such registration of Standard Common Stock is expected to generate gross
proceeds (before underwriting discounts and commissions) in an amount equal to or exceeding $20 million: 

        (i)    the
Stockholders shall then be entitled to request the registration under the Securities Act of the Registrable Securities (other than Investor Registrable Securities)
from time to time without regard to number, pursuant to the notice and other applicable provisions of this Section 6.1, with Registration
Expenses for the first three of such registrations on Form S-3 to be paid by the Company; and 

        (ii)   the
Investors shall then be entitled to request the registration under the Securities Act of the Investor Registrable Securities from time to time without regard to
number, but not to exceed two registrations in any twelve-month period, pursuant to the notice and other applicable provisions of this  Section 6.1, with Registration Expenses for the first three of
such registrations on Form S-3 to be paid by the Company. 

        Section 6.2    Incidental Registration.    

        (a)    Right to Include the Registrable Securities.    If the Company at any time proposes to register securities
under the Securities Act by registration on Forms S-1, S-2 or S-3 or any successor or similar form(s) (except registrations on Forms S-4
or S-8 or any successor or similar forms), whether for sale for its own account or pursuant to another demand for registration granted any other Person, it will give prompt written notice
each such time to the Stockholders of its intention to do so and of the Stockholders' rights under this Section 6.2. Upon the written request of
any Stockholder (specifying the Registrable Securities intended to be disposed of and the intended method of disposition thereof), made within 15 Business Days after the receipt of any such notice,
the Company will use its best efforts to effect the registration under the Securities Act of all Registrable Securities which the Company has been so requested to register by the Stockholders to the
extent requisite to permit the disposition (in accordance with the intended methods thereof as aforesaid of such Registrable Securities to be so registered (any Stockholder if giving notice following
receipt of such a notice from the Company being herein referred to as a "Participating Stockholder"). If the Company thereafter determines for any
reason not to register or to delay registration of such securities, the Company, by act of its Board of Directors, may, at its election, give written notice of such determination to each Participating
Stockholder and, thereupon, (i) in the case of a determination not to register, shall be relieved of the obligation to register such Registrable Securities in connection with such registration
(but not from any obligation of the Company to pay the Registration Expenses in connection therewith, as provided in Section 6.8), without
prejudice, however, to the rights (if any) of a Stockholder to request that such registration be effected as a registration under Section 6.1,
and (ii) in the case of a determination to delay registration, shall be permitted to delay registering any Registrable Securities, for the same period as the delay in registration of such other
securities. The Company will pay all Registration Expenses in connection with registration of Registrable Securities requested pursuant to this  Section 6.2. 

21

 

        (b)    Priority in Incidental Registration Rights in Connection with Registrations for Company Account.    If the
registration referred to in Section 6.2(a) is to be an underwritten primary registration on behalf of the Company, and the managing
underwriter(s) advises the Company in writing that in their good faith opinion such offering would be materially and adversely affected by the inclusion therein of the total number of Registrable
Securities requested to be included therein by Participating Stockholders under this Agreement, the Company shall include in such registration: (i) first, all securities the Company proposes to
sell for its own account or, if such registration is pursuant to Section 6.1, all Registrable Securities requested to be included by the Demand
Rights Stockholders, (ii) second, up to the full number of Registrable Securities requested to be included in such registration by the Preferred Stockholders, pro rata based on the number of
Registrable Securities held by each Preferred Stockholder relative to the number of Registrable Securities held by all Preferred Stockholders requesting registration, and (iii) third, up to the
full number of Registrable Securities requested to be included in such registration by the Common Stockholders, pro rata based on the number of Registrable Securities held by each Common Stockholder
relative to the number of Registrable Securities held by all Common Stockholders requesting registration. 

        (c)    Limitations; Exceptions.    The Company shall not be required to effect any registration of Registrable
Securities under this Section 6.2 incidental to the registration of any of its securities in connection with mergers, acquisitions, exchange
offers, subscription offers, dividend reinvestment plans or stock option or other employee benefit plans. No Participating Stockholder shall be allowed to participate in any
registration pursuant to this Section 6.2 hereof if the Standard Common Stock is admitted to trading or listed on a national securities exchange,
the Nasdaq National Market or NASDAQ and such Stockholder is eligible to sell its Registrable Securities without volume limitations and without an effective registration statement. No registration of
Registrable Securities effected under this Section 6.2 shall relieve the Company of its obligation to effect registrations of Registrable
Securities pursuant to Section 6.1 hereof. 

        Section 6.3    Registration Procedures.    In connection with the Company's obligations pursuant to 
Sections 6.1 and 6.2 hereof, the Company will use its best efforts to effect such registrations
to permit the sale of Registrable Securities in accordance with the intended method or methods of disposition thereof, and pursuant thereto the Company will as expeditiously as possible: 

        (a)   prepare
(within 90 days after a request for registration is made to the Company in the case of a registration pursuant to  Section 6.1(a) or (b) and in any
event as soon as possible) and file with the SEC, a registration
statement or registration statements on any appropriate form under the Securities Act, which form shall be available for the sale of the Registrable Securities by the holders thereof in accordance
with the intended method or methods of distribution thereof, and use its best efforts to cause such registration statement to become effective and to remain continuously effective for a period of
180 days following the date on which such registration statement is declared effective, provided that the Company shall have no obligation to maintain the effectiveness of such registration
statement after the sale of all Registrable Securities registered thereunder; 

        (b)   prepare
and file with the SEC such amendments and post-effective amendments to a registration statement as may be necessary to keep such registration
statement effective for the applicable period; cause the related prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed pursuant to Rule 424
under the Securities Act; and comply with the provisions of the Securities Act with respect to the disposition of all securities covered by such registration statement during the applicable period in
accordance with the intended methods of disposition by a Stockholder or a Participating Stockholder set forth in such registration statement or supplement to such prospectus; 

22

 

        (c)   notify
each Stockholder or a Participating Stockholder whose Registrable Securities are to be covered by the registration statement and the managing underwriters, if
any, promptly, and (if requested by any such Person) confirm such advice in writing, (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed,
and, with respect to a registration statement or any post-effective amendment, when the same has become effective, (ii) of any request by the SEC for amendments or supplements to a
registration statement or related prospectus or for additional information, (iii) of the issuance by the SEC of any stop order suspending the effectiveness of a registration statement or the
initiation of any proceedings for that purpose, (iv) if at any time the representations and warranties of the Company made as contemplated by paragraph (1) below cease to be true and
correct, (v) of the receipt by the Company of any
notification with respect to the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose,
(vi) of the happening of any event which requires the making of any changes in a registration statement or related prospectus so that such documents will not contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading and (vii) of the Company's reasonable determination
that a post-effective amendment to a registration statement would be appropriate; 

        (d)   make
every reasonable effort to obtain the withdrawal of any order suspending the effectiveness of a registration statement, or the lifting of any suspension of the
qualification of any of the Registrable Securities for sale in any jurisdiction, at the earliest possible moment; 

        (e)   if
requested by the managing underwriters, a Stockholder or a Participating Stockholder, immediately incorporate in a prospectus supplement or post-effective
amendment such information as the managing underwriters, the Stockholders and the Participating Stockholders agree should be included therein relating to the sale and distribution of Registrable
Securities, including, without limitation, information with respect to the number of Registrable Securities being sold to such underwriters, the purchase price being paid therefor by such underwriters
and with respect to any other terms of the underwritten (or best efforts) offering of the Registrable Securities to be sold in such offering; make all required filings of such prospectus supplement or
post-effective amendment as soon as notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and supplement or make amendments to
any registration statement if requested by a Stockholder, a Participating Stockholder or any underwriter of such Registrable Securities; 

        (f)    furnish
to each Stockholder and each Participating Stockholder whose Registrable Securities are covered by the Registration Statement and each managing underwriter,
without charge, at least one conformed copy of the registration statement or statements and any post-effective amendment thereto, including financial statements and schedules, all
documents incorporated therein by reference and all exhibits (including those incorporated by reference); 

        (g)   deliver
to each Stockholder whose Registrable Securities are covered by the registration statement, each other Participating Stockholder and the underwriters, if any,
without charge, as many copies of the prospectus or prospectuses (including each preliminary prospectus) and any amendment or supplement thereto and such other documents as such Persons may reasonably
request; and consents to the use of such prospectus or any amendment or supplement thereto by each Stockholder, Participating Stockholder and the underwriters, if any, in connection with the offering
and sale of the Registrable Securities covered by such prospectus or any amendment or supplement thereto; 

        (h)   prior
to any public offering of Registrable Securities, use its best efforts to register or qualify or cooperate with each Stockholder whose Registrable Securities are
covered by such registration statement, each other Participating Stockholder, the underwriters, if any, and their respective counsel in connection with the registration or qualification of such
Registrable Securities 

23

 

for
offer and sale under the securities or blue sky laws of such jurisdictions as each Stockholder, each Participating Stockholder, or any underwriter reasonably requests in writing; keep each such
registration or qualification effective during the period such registration statement is required to be kept effective and do any and all other acts or things necessary or advisable to enable the
disposition in such jurisdictions of the Registrable Securities covered by the applicable registration statement; provided that the Company will not be required to qualify generally to do business in
any jurisdiction where it is not then so qualified or to take any action which would subject it to general service of process in any such jurisdiction where it is not then so subject; 

        (i)    cooperate
with each Stockholder whose Registrable Securities are covered by such registration statement, each Participating Stockholder and the managing underwriters, if
any, to facilitate the timely preparation and delivery of certificates representing Registrable Securities to be sold and not bearing any restrictive legends unless required by applicable law; and
enable such Registrable Securities to be in such denominations and registered in such names as the managing underwriters may request at least two Business Days prior to any sale of Registrable
Securities to the underwriters; 

        (j)    use
its best efforts to cause the Registrable Securities covered by the applicable registration statement to be registered with or approved by, and to cause the
transaction contemplated by the registration to be approved by, such other Governmental Authorities (including, where necessary the FCC) as may be necessary to consummate the disposition of such
Registrable Securities; 

        (k)   upon
the occurrence of any event contemplated by paragraph (c)(vi) above, prepare a supplement or
post-effective amendment to the applicable registration statement or 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 being sold thereunder, such prospectus will not contain any untrue statement of a material fact or omit to state any material fact
necessary to made the statements therein not misleading; 

        (l)    enter
into such Agreements (including an underwriting agreement) and take all such other actions in connection therewith in order to expedite or facilitate the
disposition of such Registrable Securities and in such connection, whether or not an underwriting agreement is entered into and whether or not the registration is an underwritten registration,
(i) make such representations and warranties to each Stockholder whose Registrable Securities are covered by such registration statement and each other Participating Stockholder with respect to
the registration statement, prospectus and documents incorporated by reference, if any, in form, substance and scope as are customarily made by issuers to underwriters in underwritten offerings and
confirm the same if and when requested; (ii) furnish to each such Stockholder and each other Participating Stockholder an opinion of counsel for the Company addressed to each such Stockholder
and dated the date of the closing under the underwriting agreement (if any) (or if such offering is not underwritten, dated the effective date of the registration statement), and (ii) use its
best efforts to furnish to each such Stockholder and each other Participating Stockholder a "cold comfort" letter addressed to each such Stockholder and signed by the independent public accountants
who have audited the Company's financial statements included in such registration statement, in each such case covering substantially the same matters with respect to such registration statement (and
the prospectus included therein) as are customarily covered in opinions of issuer's counsel and in accountants' letters delivered to underwriters in underwritten public offerings of securities and
such other matters as each such Stockholder and each other Participating Stockholder may reasonably request and, in the case of such accountants' letter, with respect to events subsequent to the date
of such financial statements; and (vi) the Company shall deliver such documents and certificates as may be requested by each such Stockholder, each Participating Stockholder and the managing
underwriters, if any, to evidence compliance with this clause (l) and with any customary conditions contained in the underwriting agreement or other 

24

 

agreement
entered into by the Company; all of the above to be done at each closing under such underwriting or similar agreement or as and to the extent required thereunder; 

        (m)  otherwise
use its best efforts to comply with all applicable rules and regulations of the SEC and make generally available to its security holders earnings statements
satisfying the provisions of Section 11(a) of the Securities Act, as soon as reasonably practicable after the end of any 12-month period (i) commencing at the end of any
fiscal quarter in which Registrable Securities are sold to underwriters in a firm or best efforts underwritten offering and (ii) beginning with the fast day of the Company's first fiscal
quarter next succeeding each sale of Registrable Securities after the effective date of a registration statement, which statements shall cover said 12-month periods; and 

        (n)   use
its best efforts to cause all Registrable Securities covered by each registration to be listed on each securities exchange and inter-dealer quotation system on which
a class of common equity securities of the Company is then listed and to pay all fees and expenses in connection therewith. 

        The
Company may require each Stockholder whose Registrable Securities are covered by a registration statement and each other Participating Stockholder to furnish to the Company such
information regarding itself and the distribution of such Registrable Securities as the Company may from time to time reasonably request in writing in order to comply with the Securities Act and each
such Person
agrees to notify the Company as promptly as practicable of any inaccuracy or change in information it has previously furnished to the Company in writing or of the happening of any event, in either
case as a result of which any prospectus relating to such registration contains an untrue statement of a material fact regarding such Person or the distribution of such Registrable Securities or omits
to state any material fact regarding such Person or the distribution of such Registrable Securities required to be stated therein or necessary to make the statement therein not misleading in light of
the circumstances then existing, and to promptly furnish to the Company any additional information required to correct and update any previously furnished information or required such that such
prospectus shall not contain, with respect to such Person or the distribution of such Registrable Securities, and 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 in light of the circumstances then existing. Each such Stockholder and each Participating Stockholder agrees that, upon
receipt of any notice from the Company of the happening of any event of the kind described in Sections 6.3(c)(ii),  (iii), (v),
(vi) or (vii) hereof, such Stockholder will
forthwith discontinue disposition of such Registrable Securities covered by such registration statement or prospectus until such Stockholder's receipt of the copies of the supplemented or amended
prospectus relating to such registration statement or prospectus, or until it is advised in writing by the Company that the use of the applicable prospectus may be resumed, and has received copies of
any additional or supplemental filings which are incorporated by reference in such prospectus, and, if so directed by the Company, such Stockholder will deliver to the Company (at the Company's
expense) all copies, other than permanent file copies then in such Person's possession, of the prospectus covering the Registrable Securities current at the time of receipt of such notice. 

        Section 6.4    Underwritten Offerings.    

        (a)    Demand Underwritten Offerings.    In any offering pursuant to a registration requested under  Section 6.1 which is to be
effected as a firm commitment underwritten offering, sales shall be made through a nationally recognized investment
banking firm (or syndicate managed by such a firm) selected by the holders of a majority of the Registrable Securities of the Stockholders participating in such registration and reasonably
satisfactory to the Board of Directors. The Company shall enter into an underwriting agreement which shall be reasonably satisfactory in form and substance to the holders of a majority of the
Registrable Securities held by the Stockholders participating in such registration and which shall contain representations, warranties and 

25

 

agreements
(including indemnification agreements to the effect and to the extent provided in Section 6.7) as are customarily included by an
issuer in underwriting agreements with respect to secondary distributions. The Stockholders participating in such registration shall be parties to such underwriting agreement and the representations
and warranties by, and the other agreements on the part of the Company to and for the benefit of such underwriters shall also be made to and for the benefit of such Stockholders. The Stockholders
shall not be required to make any representations or warranties to or agreements with the Company or the underwriters other than representations, warranties or agreements regarding such Person, such
Person's Registrable Securities and its intended method of distribution and any other representation required by law. 

        (b)    Incidental Underwritten Offering.    If the Company at any time proposes to register any of its securities
under the Securities Act as contemplated by Section 6.2 and such securities are to be distributed by or through one or more underwriters, the
Company will, if requested by a Participating Stockholder as provided in Section 6.2 and subject to the provisions of  Section 6.2(b), use its
best efforts to arrange for such underwriters to include all the Registrable Securities to be offered and sold by the
Participating Stockholders among the securities to be distributed by underwriters. The Participating Stockholders participating in the registration shall be party to the underwriting agreement between
the Company and such underwriters and the representations and warranties by, and the other agreements on the part of, the Company to and for the benefit of such underwriters shall also be made to and
for the benefit of the Participating Stockholders. Except as provided in this sentence, the Participating Stockholders shall not be required to make any representations or warranties to or agreements
with the Company or the underwriters other than representations, warranties or agreements regarding such Person, such Person's Registrable Securities and the intended method of distribution and any
other representation required by law. 

        Section 6.5    Preparation; Reasonable Investigation.    In connection with the preparation and filing of
each
registration statement under the Securities Act pursuant to this Agreement, the Company will give each Stockholder participating in the registration, its underwriters, and its counsel and accountants
and each Participating Stockholder, the opportunity to participate in the preparation of such registration statement, each prospectus included therein or filed with the SEC, and each amendment thereof
or supplement thereto, and will give each of them such access to its books and records and such opportunities to discuss the business of the Company with its officers and the independent public
accountants who have certified its financial statements as shall be necessary, in the opinion of each such Stockholder, each Participating Stockholder and such underwriters' counsel, to conduct a
reasonable investigation within the meaning of the Securities Act. 

        Section 6.6    Limitations, Conditions and Qualifications to Obligations Under Registration Covenants.    The
obligations of the Company to cause the Registrable Securities to be registered under the Securities Act are subject to each of the following limitations, conditions and qualifications: The Company,
by act of its Board of Directors, shall be entitled to postpone for a reasonable period of time (but not exceeding 90 days during any 12-month period) the filing or effectiveness of
any registration statement otherwise required to be prepared and filed by it pursuant to Section 6.1 if the Board of Directors of the Company
determines, in its reasonable judgment, that (a) the Company is in possession of material information that has not been disclosed to the public and the Board of Directors of the Company
reasonably deems it to be advisable not to disclose such information at such time in a registration statement or (b) such registration and offering would interfere with any financing,
acquisition, corporate reorganization or other material transaction involving the Company and its Subsidiaries, taken as a whole, and, in any such case, the Company promptly gives each Stockholder
written notice of such determination, containing a general statement of the reasons for such postponement and an approximation of the anticipated delay. If the Company shall so postpone the filing of
a registration statement, the holders of a majority of the Registrable Securities covered by such registration statement shall have the right to withdraw the request for registration by giving written
notice of withdrawal and, in the event of such withdrawal, such demand for registration related to the withdrawn registration statement shall not be counted for purposes of the demands for
registration to which the Stockholders are entitled pursuant to Section 6.1 hereof. 

26

           Section 6.7    Indemnification.    

        (a)    Indemnification by the Company.    In the event of any registration of any Registrable Securities under the
Securities Act, the Company will, and hereby does, indemnify and hold harmless, to the fullest extent permitted by law, the Stockholders and the Participating Stockholders, their respective directors,
officers, agents, Affiliates, each other Person who participates as an underwriter in the offering or sale of such securities and each other Person, if any, who controls a Stockholder, a Participating
Stockholder or any such underwriter within the meaning of the Securities Act, against any and all judgments, fines, penalties, charges, costs, amounts paid in settlement, losses, claims, damages,
liabilities, expenses, or attorney fees, joint or several, incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the
foregoing by or before any court or governmental, administrative or other regulatory agency, body or SEC, whether pending or threatened, whether or not an indemnified party is or may be a party
thereto, including interest on the foregoing ("Indemnified Damages"), to which they or any of them may become subject under the Securities Act or any
other statute or common law, insofar as any such Indemnified Damages arise out of or are based upon (i) any untrue statement or alleged untrue statement of a material fact contained in the
registration statement relating to the sale of such securities or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under blue
sky or other securities laws of jurisdictions in which the Registrable Securities are offered ("Blue Sky Filing"), or the omission or alleged omission
to state therein a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading or
(ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus, if used prior to the effective date of such registration statement (unless such
statement is corrected in the final prospectus and the Company has previously furnished copies thereof to any Stockholder or Participating Stockholder seeking such indemnification and the
underwriters), or contained in the final prospectus (as amended or supplemented if the Company shall have filed with the SEC any amendment thereof or supplement thereto) if used within the period
during which the Company is required to keep the registration statement to which such prospectus relates current, or the omission or alleged omission to state therein (if so used) a material fact
necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that the
indemnification agreement contained herein shall not apply to such Indemnified Damages to a particular Person to be indemnified hereunder arising out of, or based upon, any such untrue statement or
alleged untrue statement, or any such omission or alleged omission, if such statement or omission was made in reliance upon and in conformity with written information furnished to the Company by such
Person stating that it is for use in connection with preparation of the registration statement, any preliminary prospectus or final prospectus contained in the registration statement any such
amendment or supplement thereto or any Blue Sky Filing. 

        Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of a Stockholder, a Participating Stockholder or any such director, officer,
agent, Affiliate,
underwriter or controlling Person and shall survive the transfer of such securities by a Stockholder or Participating Stockholder. 

        (b)    Indemnification by a Stockholder.    The Company may require, as a condition to including the Registrable
Securities of a Stockholder or a Participating Stockholder in any registration statement filed pursuant to Section 6.1 or  6.2, that the Company shall
have received an undertaking satisfactory to it from such Stockholder or such Participating Stockholder severally and not
jointly (in the same manner and to the same extent as each other Stockholder or Participating Stockholder) to indemnify and hold harmless (in the same manner and to the same extent as set 

27

 

forth
in subdivision (a) of this Section 6.7) the Company, its officers and directors and each officer of the Company and each other
Person, if any, who controls the Company within the meaning of the Securities Act with respect to any untrue statement or alleged untrue statement in, or omission or alleged omission from, such
registration statement, any preliminary prospectus or final prospectus contained therein, or any amendment or supplement thereto, if such statement or omission was made in reliance upon and in
conformity with written information such Stockholder or such Participating Stockholder furnished to the Company through an instrument duly executed by him specifically stating that it is for use in
the preparation of such registration statement, preliminary prospectus, final prospectus, amendment or supplement, provided that such Stockholder or Participating Stockholder shall not indemnify the
Company with respect to any such untrue statement or alleged untrue statement or omission or alleged omission which was subsequently corrected with information (contained in a writing in compliance
with the requirements of this paragraph timely delivered to the Company) to be included in an amendment or supplement to such registration statement, preliminary prospectus or final prospectus, if
such amendment or supplement would have avoided the liability otherwise subject to indemnification by such Stockholder or Participating Stockholder and the Company failed to deliver such amendment or
supplement as necessary to avoid such liability. Such indemnity shall remain in full force and effect, regardless of any investigation made by or on behalf of the Company or any such director, officer
or controlling Person and shall survive the Transfer of such securities by the Stockholder or the Participating Stockholder to whom it relates. In no event shall any indemnity paid by a Stockholder or
a Participating Stockholder to the Company or any other Person indemnified pursuant to Section 6.7(b) (or to whom contribution is paid pursuant
to Section 6.7(e)), or otherwise, exceed individually or in the aggregate the proceeds (net of all applicable fees paid by such indemnifying
party) received by such indemnifying party in such offering. 

        (c)    Notices of Claims, etc.    Promptly after receipt by an indemnified party of notice of the commencement of any
action or proceeding involving a claim referred to in the preceding subdivisions of this Section 6.7, such indemnified party will, if a claim in
respect thereof is to be made against an indemnifying party, give written notice to the latter of the commencement of such action, provided that the failure of any indemnified party to give notice as
provided herein shall not relieve the indemnifying party of its obligations under the preceding subdivisions of this Section 6.7, except to the
extent that the indemnifying party is actually prejudiced by such failure to give notice. In case any such action is brought against an indemnified party, the indemnifying party shall be entitled to
participate in and, unless in such indemnified party's reasonable judgment a conflict of interest between such indemnified and indemnifying parties may exist in respect of such claim, to assume the
defense thereof, jointly with any other indemnifying party similarly notified to the extent that it may wish, with counsel reasonably satisfactory to such indemnified party, and after notice from the
indemnifying party to such indemnified party of its election so to assume the defense thereof, the indemnifying party shall not be liable to such indemnified party for any legal or other expenses
subsequently incurred by the latter in connection with the defense thereof other than reasonable costs of investigation. If, in the reasonable judgment of the counsel to the indemnified party, having
common counsel with an indemnifying party could result in a conflict of interest because of different or additional defenses that may be available to the indemnified party, then such indemnified party
may employ at the indemnifying party's expense separate counsel to represent or defend such indemnified party in such action, it being understood, however, that the indemnifying party shall not be
liable for the reasonable fees and expenses of more than one separate firm of attorneys at any time for all such indemnified parities (in addition to local counsel) in such action or group of related
actions arising out of the same facts or circumstances. In the event that the indemnifying party advises an indemnified party that it will contest a claim for indemnification hereunder, or fails,
within 30 days of receipt of any indemnification notice to notify, in writing, such person of its election to defend, settle or 

28

 

compromise,
at its sole cost and expense, any action, proceeding or claim (or discontinues its defense at any time after it commences such defense), then the indemnified party may, at its option,
defend, settle or otherwise compromise or pay such action or claim. In any event, unless and until the indemnifying party elects in writing to assume and does so assume the defense of any such claim,
proceeding or action, the indemnified party's costs and expenses arising out of the defense, settlement or compromise of any such action, claim or proceeding shall be losses subject to indemnification
hereunder. The indemnified party shall cooperate fully with the indemnifying party in connection with any negotiation or defense of any such action or claim by the indemnifying party and shall furnish
to the indemnifying party all information reasonably available to the indemnified party which relates to such action or claim. The indemnifying party shall keep the indemnified party fully apprised at
all times as to the status of the defense or any settlement negotiations with respect thereto. If the indemnifying party elects to defend any such action or claim, then the indemnified party shall be
entitled to participate in such defense with counsel of its choice at its sole cost and expense. If the indemnifying party does not assume such defense, the indemnified party shall keep the
indemnifying party apprised at all times as to the status of the defense; provided, however, that the failure to keep the indemnifying party so informed
shall not affect the obligations of the indemnifying party hereunder. Except as provided above with respect to contested indemnification claims and failures by an indemnifying party to act, no
indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its written consent, provided, however, that
the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the consent of the indemnified party (which consent shall not be
unreasonably withheld, delayed or conditioned), consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by
the claimant or plaintiff to such indemnified party of a release from all liability in respect to such claim or litigation. Following indemnification as provided for
hereunder, the indemnifying party shall be subrogated to all rights of the indemnified party with respect to all third parties, firms or corporations relating to the matter for which indemnification
has been made. 

        (d)    Indemnification Payments.    The indemnification required by this  Section 6.7 shall be made by periodic payments of the
amount thereof during the course of the investigation or defense, as and when bills are
received or Indemnified Damages are incurred. 

        (e)    Contribution.    If the indemnification provided for in this Section 6.7  shall for any reason be held by a court to be
unavailable to an indemnified party under subparagraph (a) or  (b) hereof in respect of any indemnified Damages, then, in lieu of the amount paid
or payable under  subparagraph (a) or (b) hereof, the indemnified party and the indemnifying party under  subparagraph (a) or (b) hereof shall contribute to the aggregate Indemnified Damages, in
such proportion as is appropriate to reflect the relative fault of the indemnifying party and the indemnified party with respect to the statements or omissions which resulted in such Indemnified
Damages, as well as any other relevant equitable considerations. No Person guilty of fraudulent misrepresentation (within the meaning of Section 1l(f) of the Securities Act) shall be entitled
to contribution from any Person who was not guilty of such fraudulent misrepresentation. The obligations of Stockholders and Participating Stockholders to contribute as provided in this  subparagraph (e) are several in proportion to the relative value of their respective Registrable Securities covered by such registration
statement and not joint. In addition, no Person shall be obligated to contribute hereunder any amounts in payment for any settlement of any action or claim effected without such Person's consent,
which consent shall not be unreasonably withheld, delayed or conditioned. 

29

 

        (f)    Other Rights, Liabilities.    The indemnity agreements contained herein shall be in addition to (i) any
cause of action or similar right of the indemnified party against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law. 

        (g)    Other Indemnification and Contribution.    Indemnification and contribution similar to that specified in the
preceding subdivisions of this Section 6.7 (with appropriate modifications) shall be given by the Company and each Stockholder whose Registrable
Securities included in a registration and each other Participating Stockholder with respect to any required registration or other qualification of Registrable Securities under any federal or state law
or regulation of any Governmental Authority other than the Securities Act. 

        Section 6.8    Registration Expenses.    The Company will pay all Registration Expenses (as defined below)
in
connection with (i) any demand registrations pursuant to Section 6.1(a) and (b),
(ii) the first three registrations on Form S-3 of Registrable Securities pursuant to Section 6.l(h)(i) and
(iii) the first three registrations on Form S-3 of Investor Registrable Securities pursuant to  Section 6.1(h)(ii); provided that in the case
where a registration statement under  Section 6.2 fails to become effective or fails to become effective as provided in  Section 6.1(d), the
Company shall additionally pay the fees and expenses of the Participating Stockholders' counsel and of any other Person
retained by them. Registration Expenses include all expenses incident to the Company's performance of or compliance with this Agreement, including, without limitation, all registration and filing
fees, including fees with respect to filings required to be made with the SEC and the National Association of Securities Dealers, Inc., fees and expenses of compliance with securities or blue
sky laws, including, without limitation, reasonable fees and disbursements of counsel for the underwriters, all word processing, duplicating and printing expenses, messenger, telephone and delivery
expenses, and fees and disbursements of counsel of the Company, one counsel for the participating Stockholders (selected by the holders of a majority of the Registrable Securities of such
participating Stockholders) and of all independent certified public accountants of the Company (including the expenses of any special audit and "cold comfort" letters required by or incident to such
performance), underwriters fees and disbursements (excluding underwriting discounts and commissions, SEC or fees of underwriters, selling brokers, dealer managers or similar securities industry
professionals relating to the distribution of the Registrable Securities), securities acts liability insurance if the Company so desires, fees and expenses of other Persons retained by the Company
(all such expenses being herein called "Registration Expenses"). Registration Expenses shall not include underwriting discounts and commissions and
transfer taxes, if any, and fees and expenses of any counsel to Participating Stockholders and other expenses of Participating Stockholders. Except as otherwise provided above, the Company will also
pay its internal expenses (including, without limitation, all salaries and expenses of its officers and employees performing legal or accounting duties), the expense of any annual audit, the fees and
expenses incurred in connection with the listing of the securities to be registered on any securities exchange, rating agency fees and the fees and expenses of any Person, including special experts,
retained by the Company. 

        Section 6.9    Certain Rights of Stockholders if Named in a Registration Statement.    If any statement
contained in a registration statement under the Securities Act refers to a Stockholder or a Participating Stockholder by name or otherwise as the holder of any securities of the Company, then a
Stockholder or a Participating Stockholder shall have the right to require the insertion therein of language, in form and substance reasonably satisfactory to it and the Company, to the effect that
its holdings do not necessarily make it a "controlling person" of the Company within the meaning of the Securities Act and is not to be construed as a recommendation of the investment quality of the
Company's securities covered thereby. 

        Section 6.10    Rule 144.    If the Standard Common Stock is admitted to trading or listed on a
national
securities exchange, the Nasdaq National Market or NASDAQ, the Company shall take all actions and file all such information, documents and reports as shall be required to enable a 

30

 

Stockholder
to sell its Registrable Securities without registration under the Securities Act within the limitation of the exemptions provided by Rule 144 under the Securities Act, as such Rule
may be amended from time to time, or any similar rule or regulation hereafter adopted by the SEC. 

        Section 6.11    Registration Rights.    The Company covenants that it will not grant any right of
registration
under the Securities Act relating to any of its shares of capital stock or other securities to any Person other than pursuant to this Agreement, unless (i) the rights so granted to another
Person do not limit or restrict the Stockholders' right to request four demand registrations as provided for in Section 6.1 hereof at such times
and covering such amount of Registrable Securities as the Stockholders determine (except as such timing or amount of Registrable Securities may otherwise be limited by the express terms of this
Agreement) and (ii) the rights so granted to another Person do not limit or restrict the rights granted pursuant to Section 6.1 or  Section 6.2 hereof to a Stockholder to have such Registrable Securities included in any registration by the Company under the Securities Act made
pursuant to a demand by the Stockholders or by the Company of its securities for its own account (except as such rights are otherwise expressly limited by the terms of this Agreement). 

        Section 6.12    Assignment of Rights.    The rights of the Stockholders set forth in this  ARTICLE 6 are transferable to each Transferee of shares of capital stock of the Company pursuant to the terms hereof. Each such Transferee must consent
in writing to be bound by the terms and conditions of this Agreement in order to acquire the rights granted hereunder by executing a copy of the Joinder Agreement. 

        Section 6.13    Limitations on Sale or Distribution.    If a registration under this Agreement shall be in
connection with the initial Public Equity Offering of equity securities of the Company, each holder of Registrable Securities hereby agrees not to effect any public sale or distribution, including any
sale pursuant to Rule 144 under the Securities Act, of any Registrable Securities, and not to effect any such public sale or distribution of any other equity security of the Company or of any
security convertible into or exchangeable or exercisable for any equity security of the Company (other than as part of such underwritten public offering) within 180 days after the effective
date of such registration statement or such shorter period requested by the applicable underwriter. The Stockholders agree to execute any lockup agreement containing the foregoing terms, and such
other customary and reasonable restrictions on resale, as may be required by such applicable underwriter. 

ARTICLE 7    GENERAL  

        Section 7.1    Amendments, Waivers and Consent.    For the purposes of this Agreement and all agreements
executed pursuant hereto, no course of dealing between or among any of the parties hereto and no delay on the part of any party hereto in exercising any rights hereunder or thereunder shall operate as
a waiver of the rights hereof and thereof. This Agreement may not be amended or modified or any provision hereof waived without the joint written consent of (a) the Company,
(b) Stockholders holding a majority of the shares of Common Stock of the Stockholders, and (c) Preferred Stockholders holding not less than 662/3% of the shares of
Standard Common Stock issued or issuable upon conversion of the Preferred Stock then held by such Preferred Stockholders with the Preferred Stockholders voting together as a single class;  provided that
any party may waive any provision hereof intended for its benefit by written consent; provided,
further, that the observance of any term hereof relating to the rights of the holders of Series D Preferred Stock (or any Standard Common Stock issued upon conversion
thereof) may be amended, modified or waived (either retroactively or prospectively) with (and only with) the written consent of the holders of at least 662/3% of the issued and
outstanding shares of the Series D Preferred Stock on an as-converted to Common Stock basis; and provided, further, that the
observance of any term hereof relating to the rights of the holders of Series E Preferred Stock (or any Common Stock issued upon conversion thereof) may be amended, modified or waived (either
retroactively or prospectively) with (and only with) the written consent of 

31

 

the
holders of at least 662/3% of the issued and outstanding shares of the Series E Preferred Stock on an as-converted to Common Stock basis. 

        Section 7.2    Legend on Securities.    The Company and each of the Stockholders acknowledge and agree that
a
legend substantially in the following form shall be typed on each certificate evidencing any of the Company's securities issued on or after the date hereof, held at any time by any Stockholder: 

        THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND MAY NOT BE OFFERED, SOLD,
TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT (1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES WHICH IS EFFECTIVE UNDER THE ACT OR (2) PURSUANT TO AN
AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES AND (3) IN ACCORDANCE WITH APPLICABLE STATE SECURITIES AND BLUE SKY LAWS. 

        THE
SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE PROVISIONS OF AN AMENDED AND RESTATED STOCKHOLDERS AGREEMENT DATED AS OF AUGUST 30, 2005, INCLUDING THEREIN CERTAIN RESTRICTIONS ON
TRANSFER. A COMPLETE AND CORRECT COPY OF THIS AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST AND WITHOUT CHARGE. 

        Section 7.3    Governing Law.    This Agreement shall be deemed to be a contract made under, and shall be
construed in accordance with, the laws of the State of Delaware, without giving effect to conflict of laws principles thereof. 

        Section 7.4    Section Headings.    The descriptive headings in this Agreement have been inserted for
convenience only and shall not be deemed to limit or otherwise affect the construction of any provision thereof or hereof. 

        Section 7.5    Effectiveness; Binding Effect.    This Agreement amends, restates and replaces in its
entirety
the Prior Stockholders Agreement and is binding on all the parties to the Prior Stockholders Agreement, and the failure of one or more parties to the Prior Stockholders Agreement to sign this
Agreement shall not affect such effectiveness. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their
respective successors and permitted assigns. 

        Section 7.6    Counterparts-Additional Parties.    This Agreement may be executed simultaneously in any
number
of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute but one and the same document. The Company may permit
persons who purchase or otherwise acquire Standard Common Stock from the Company after the date hereof to join as parties to this Agreement from time to time, by executing a signature page in the form
attached hereto for execution by Stockholders, provided, however, that such signature page shall not be effective unless countersigned by the Company.
The Company shall maintain a master copy of this Agreement, with all such signature pages attached thereto, and each such holder of Standard Common Stock and Preferred Stock who has so executed this
Agreement shall be deemed to be a Stockholder under this Agreement for all purposes. 

        Section 7.7    Notices and Demands.    Any notice, demand or other communication which is required or
provided
to be given under this Agreement shall be in writing and shall be deemed to have been sufficiently given and received for all purposes when delivered by hand, electronic mail transmission (including,
without limitation, electronic mail attachment), telecopy, telex or other method of facsimile, or five days after being sent by certified or registered mail, postage and charges prepaid, return
receipt 

32

 

requested,
or two days after being sent by overnight delivery providing receipt of delivery. Any such notice, demand or other communication must be sent as follows: 

if
to the Company, to: 

MetroPCS
Communications, Inc.

8144 Walnut Hill Lane

Suite 800

Dallas, Texas 75231

Attention: Legal Department

Telephone: (214) 265-2550

Telecopy: (214) 265-2570

email: mstachiw@metropcs.com 

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

Vinson &
Elkins L.L.P.

Trammell Crow Center

2001 Ross Avenue, Suite 3700

Dallas, TX 75201-2975

Attention: Jeffrey A. Chapman

Telephone: (214) 220-7700

Telecopy: (214)220-7716

email: jchapman@velaw.com 

if
to a Stockholder, to: 

the
mailing address, telecopy number and/or email address for notice as set forth in the books and records of the Company, 

or,
in the case of any party, at such other address, telecopy number and/or email address as such party shall specify in a written notice delivered to all other parties to this Agreement in accordance
with this Section. 

        Section 7.8    Remedies; Severability.    It is specifically understood and agreed that any breach of the
provisions of this Agreement by any Person subject hereto will result in irreparable injury to the other parties hereto, that the remedy at law alone will be an inadequate remedy for such breach, and
that, in addition to any other remedies which they may have, such other parties may enforce their respective rights by actions for specific performance (to the extent permitted by law). The Company
may refuse to recognize any unauthorized Transferee as one of its stockholders for any purpose, including, without limitation for purposes of dividend and voting rights, until the relevant party or
parties have complied with all applicable provisions of this Agreement. Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under
applicable law, but if any
provision of this Agreement shall be deemed prohibited, invalid or illegal under such applicable law, such provision shall be ineffective to the extent of such prohibition, invalidity or illegality,
and such prohibition, invalidity or illegality shall not invalidate the remainder of such provision or the other provisions of this Agreement. 

        Section 7.9    Integration.    This Agreement, including the exhibits, documents and instruments referred
to
herein or therein, constitutes the entire agreement, and supersedes all other prior and contemporaneous agreements and understandings, both written and oral, among the parties with respect to the
subject matter hereof and amends and restates in its entirety the Prior Stockholders Agreement. 

        Section 7.10    Termination.    With the exception of  Section 1.5(a)
, Section l.5(b),  ARTICLE 6, ARTICLE 7 and, if there has not been a
prior Class A Voting Termination
Event, ARTICLE 2 hereof 

33

 

(and
the definitions of terms related to such specified provisions), the provisions of this Agreement shall terminate and be of no further force or effect upon an Initial Public Equity Offering. 

        Section 7.11    Confidential Information.    

        (a)   For
the purposes of this Section 7.11, "Confidential Information" means all information regarding the Company or any Subsidiary or Affiliate thereof or any other
confidential information, disclosed, provided, as made known to any Stockholder by the Company, its affiliates or Subsidiaries or by a third party who has confidentiality obligations with the Company
or its Subsidiaries, provided that such term does not include information that (i) was publicly known or otherwise known to such Stockholder
prior to the time of such disclosure, (ii) subsequently becomes publicly known through no act or omission by such Stockholder or any person acting on such Stockholder's behalf, or
(iii) otherwise becomes known to such Stockholder other than through disclosure by the Company or any Subsidiary or Affiliate thereof without a duty to keep it confidential. 

        (b)   Each
Stockholder will maintain the confidentiality of such Confidential Information in accordance with procedures adopted by it in good faith to protect confidential
information of third parties delivered to it, provided that such Stockholder may deliver or disclose Confidential Information to (i) its directors, trustees, officers, employees, agents,
attorneys and Affiliates on a need to know basis (to the extent such disclosure reasonably relates to the administration of the investment represented by the shares of the Company's capital stock held
by such Stockholder), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this  Section 7.11, (iii) any other Stockholder party to this Agreement, (iv) any federal or state regulatory authority having
jurisdiction over such Stockholder, or (v) any other person to which such delivery or disclosure may be necessary or appropriate (x) to effect compliance
with any law, rule, regulation or order applicable to such stockholder, (y) in response to any subpoena or other legal process, or (z) in connection with any litigation to which such
Stockholder is a party. 

[SIGNATURE PAGES FOLLOW]

34

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

	 	 	COMPANY:
	

 	
 	

METROPCS COMMUNICATIONS, INC.
	

 	
 	

By:	
 	

/s/ Roger D. Linquist
 Name: Roger D. Linquist

Title: CEO
	

 	
 	
STOCKHOLDERS:
	

 	
 	
MADISON DEARBORN CAPITAL PARTNERS IV, L.P.
	

 	
 	

By:	
 	

Madison Dearborn Partners IV, L.P., its General Partner
	

 	
 	

By:	
 	

Madison Dearborn Partners L.L.C., its General Partner
	

 	
 	

By:	
 	

/s/ Mark B. Taesnowshi
	 	 	 	 	
 Name: Mark B. Taesnowshi

Its: Managing Director
	

 	
 	
TA IX L.P.
	

 	
 	

By:	
 	

TA Associates IX LLC, its General Partner
	

 	
 	

By:	
 	

TA Associates, Inc., its Manager
	

 	
 	

By:	
 	

/s/ Kenneth T. Schiciano
	 	 	 	 	
 Name: Kenneth T. Schiciano

Its: Managing Director

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

	 	 	TA/ATLANTIC AND PACIFIC IV L.P.
	

 	
 	

By:	
 	

TA Associates AP IV L.P., its General Partner
	

 	
 	

By:	
 	

TA Associates, Inc., its General Partner
	

 	
 	

By:	
 	

/s/ Kenneth T. Schiciano
 Name: Kenneth T. Schiciano

Its: Managing Director
	

 	
 	
TA ATLANTIC AND PACIFIC V L.P.
	

 	
 	

By:	
 	

TA Associates AP V L.P., its General Partner
	

 	
 	

By:	
 	

TA Associates, Inc., its General Patner
	

 	
 	

By:	
 	

/s/ Kenneth T. Schiciano
 Name: Kenneth T. Schiciano

Its: Managing Director
	

 	
 	
TA STRATEGIC PARTNERS FUND A L.P.
	

 	
 	

By:	
 	

TA Associates SPF L.P., its General Partner
	

 	
 	

By:	
 	

TA Associates, Inc., its General Patner
	

 	
 	

By:	
 	

/s/ Kenneth T. Schiciano
 Name: Kenneth T. Schiciano

Its: Managing Director

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

	 	 	TA STRATEGIC PARTNERS FUND B L.P.
	

 	
 	

By:	
 	

TA Associates SPF L.P., its General Partner
	

 	
 	

By:	
 	

TA Associates, Inc., its General Partner
	

 	
 	

By:	
 	

/s/ Kenneth T. Schiciano
 Name: Kenneth T. Schiciano

Its: Managing Director
	

 	
 	
TA INVESTORS II, L.P.
	

 	
 	

By:	
 	

TA Associates, Inc., its General Partner
	

 	
 	

By:	
 	

/s/ Kenneth T. Schiciano
 Name: Kenneth T. Schiciano

Its: Managing Director

SIGNATURE PAGE TO SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENT  

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SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENT By and Among MetroPCS Communications, Inc. and The Stockholders, as defined herein Dated as of August 30, 2005

TABLE OF CONTENTS

SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENTQuickLinks
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Exhibit 4.3  

 

MetroPCS, Inc.  

$245,000,000  

 Series D Convertible Preferred Stock  

 and  

 $5,000,000  

 6% Subordinated Convertible Notes due 2002  

SECURITIES PURCHASE AGREEMENT  

Dated as of July 17, 2000  

 

  

  

 
 

TABLE OF CONTENTS    
    

	 
	 
	 	Page

	ARTICLE I	 	 
	 	
 SALE AND PURCHASE OF THE SECURITIES	
 	

1
	 	Section 1.1	Authorization of Preferred Stock	 	1
	 	Section 1.2	Authorization of Notes	 	1
	 	Section 1.3	Sale and Purchase of the Preferred Stock and the Notes	 	1
	 	Section 1.4	Right to Unpurchased Shares	 	1
	

ARTICLE II	
 	

 
	 	
 CLOSINGS	
 	

2
	 	Section 2.1	Initial Closing	 	2
	 	Section 2.2	Subsequent Closing	 	2
	

ARTICLE III	
 	

 
	 	
 CONDITIONS TO INITIAL CLOSING	
 	

3
	 	Section 3.1	Representations and Warranties	 	4
	 	Section 3.2	Performance; No Default	 	4
	 	Section 3.3	Consents and Approvals	 	4
	 	Section 3.4	Board Observers	 	4
	 	Section 3.5	Opinion of Counsel	 	4
	 	Section 3.6	Certificate of Designations	 	4
	 	Section 3.7	Documents	 	4
	

ARTICLE IIIA	
 	

 
	 	
 CONDITIONS TO SUBSEQUENT CLOSING	
 	

5
	 	Section 3A.1	Representations and Warranties	 	5
	 	Section 3A.2	Performance; No Default	 	5
	 	Section 3A.3	Consents and Approvals	 	5
	 	Section 3A.4	Court Decision Satisfactory	 	5
	 	Section 3A.5	Shareholders Agreement	 	5
	 	Section 3A.6	Subordinated Convertible Notes and Preferred Stock	 	6
	 	Section 3A.7	Opinions of Counsel	 	6
	 	Section 3A.8	Fees and Expenses	 	6
	 	Section 3A.9	Debt Reduction	 	6
	 	Section 3A.10	Material Adverse Change	 	6
	 	Section 3A.11	Documents	 	6
	 	Section 3A.12	Certificate of Compliance	 	7
	

ARTICLE IV	
 	

 
	 	
 REPRESENTATIONS AND WARRANTIES OF THE COMPANY	
 	

7
	 	Section 4.1	Organization; Power and Authority	 	7
	 	Section 4.2	Authorization	 	7
	 	Section 4.3	Organization and Ownership of Shares of Subsidiaries	 	8
	 	Section 4.4	Compliance with Laws, Other Instruments, etc	 	8
	 	Section 4.5	Litigation	 	8
	 	Section 4.6	Non-Registration	 	8
	 	Section 4.7	Capitalization of the Company	 	9
	 	Section 4.8	Financial Statements	 	9
	 	 	 	 

i

 

	 	Section 4.9	Absence of Undisclosed Liabilities	 	10
	 	Section 4.10	Absence of Certain Developments	 	10
	 	Section 4.11	Title to Properties	 	10
	 	Section 4.12	Tax Matters	 	11
	 	Section 4.13	Contracts and Commitments	 	11
	 	Section 4.14	Environmental Matters	 	12
	 	Section 4.15	Affiliate Transactions	 	12
	 	Section 4.16	Intellectual Property	 	13
	 	Section 4.17	Employee Benefit Plans	 	14
	 	Section 4.18	Employee and Labor Matters	 	15
	 	Section 4.19	Brokers' and Finders' fees	 	16
	 	Section 4.20	Insurance	 	16
	 	Section 4.21	Private Sale	 	16
	

ARTICLE V	
 	

 
	 	
 REPRESENTATIONS AND WARRANTIES OF PURCHASERS	
 	

17
	 	Section 5.1	Purchase for Investment	 	17
	 	Section 5.2	Unregistered Securities; Legend	 	17
	 	Section 5.3	Power and Authority; Due Authorization	 	17
	 	Section 5.4	Accredited Investor	 	17
	

ARTICLE VI	
 	

 
	 	
 PAYMENTS, ETC.	
 	

18
	 	Section 6.1	Place of Payment	 	18
	 	Section 6.2	Payments Due on Non-Business Days	 	18
	 	Section 6.3	Optional Prepayments of Notes	 	18
	 	Section 6.4	Dividends on Preferred Stock	 	18
	

ARTICLE VII	
 	

 
	 	
 COVENANTS OF THE COMPANY	
 	

18
	 	Section 7.1	Corporate Existence; Conduct of Business	 	18
	 	Section 7.2	Payment of Obligations	 	18
	 	Section 7.3	Information	 	19
	 	Section 7.4	Use of Proceeds	 	19
	 	Section 7.5	Payment of Taxes, Compliance with Laws, etc.	 	19
	 	Section 7.6	Insurance	 	19
	 	Section 7.7	Maintenance of Properties	 	20
	 	Section 7.8	Stockholders Agreement	 	20
	 	Section 7.9	Reservation of Shares	 	20
	 	Section 7.10	Board of Directors	 	20
	 	Section 7.11	Diligent Prosecution; Litigation	 	20
	 	Section 7.12	Inspection	 	20
	 	Section 7.13	Temporary Limitation on Issuance of Equity Securities	 	20
	

ARTICLE VIII	
 	

 
	 	
 TRANSFER AND EXCHANGE	
 	

21
	 	Section 8.1	Limited Restrictions on Transfer	 	21
	 	Section 8.2	Registration of Securities	 	21
	 	Section 8.3	Transfer and Exchange	 	21
	 	Section 8.4	Replacement of Notes and Preferred Stock Certificates	 	21
	 	 	 	 

ii

 

	

ARTICLE IX	
 	

 
	 	
 MISCELLANEOUS	
 	

22
	 	Section 9.1	Indemnification	 	22
	 	Section 9.2	Notice; Defense of Claims	 	22
	 	Section 9.3	Survival of Representations and Warranties	 	23
	 	Section 9.4	Amendment and Waiver	 	23
	 	Section 9.5	Notices	 	24
	 	Section 9.6	Successors and Assigns	 	25
	 	Section 9.7	Severability	 	25
	 	Section 9.8	Counterparts	 	25
	 	Section 9.9	Jury Waiver	 	25
	 	Section 9.10	Governing Law	 	25
	 	Section 9.11	Final Agreement of the Parties	 	25
	 	Section 9.12	Further Assurances	 	26
	 	Section 9.13	Publicity	 	26
	 	Section 9.14	Headings	 	26
	 	
 Annex A	

Certain Definitions	
 	

 
	 	Schedule 1	Purchasers	 	 
	 	Schedule 2	Subsidiaries	 	 
	 	Exhibit A	Form of Certificate of Designations, Preferences and Rights Relating to the Series D Convertible Preferred Stock	 	 
	 	Exhibit B	Form of 6% Subordinated Convertible Notes due 2002	 	 
	 	Exhibit C	Form of Commitment Letter	 	 
	 	Exhibit D	Amended and Restated Stockholders Agreement	 	 

iii

  

        This SECURITIES PURCHASE AGREEMENT, dated as of July 17, 2000 (this "Agreement"), is executed by and among MetroPCS, Inc., a
Delaware corporation (the "Company"), subsidiaries listed on Schedule 2 hereto (collectively, the
"Subsidiaries") and each of the PURCHASERS listed on Schedule 1 hereto (collectively, together
with their successors and assigns, the "Purchasers"). 

        Capitalized
terms used herein not otherwise defined, shall have the meanings set forth on Annex A hereto. 

 
 

W I T N E S S E T H:    
    

        WHEREAS, the Company desires to sell, and the Purchasers desire to purchase, shares of the Company's Series D Convertible Preferred Stock (the
"Preferred Stock") and the Company's 6% Subordinated Convertible Notes due 2002 (the "Notes"); and 

        WHEREAS,
the Company and the Purchasers desire to set forth certain agreements and certain terms and conditions regarding (i) the sale and purchase of the Preferred Stock and the
Notes, and (iii) the relationship between the Company and the Purchasers; 

        NOW,
THEREFORE, the parties agree as follows: 

 
 

ARTICLE I    
    
    SALE AND PURCHASE OF THE SECURITIES    
    

        Section 1.1    Authorization of Preferred Stock    

        The
Company has authorized the issuance and sale of its Preferred Stock with an aggregate liquidation preference of up to $250,000,000, and Preferred Stock with an aggregate liquidation
preference of at least $150,000,000 may be issued and sold pursuant to this Agreement. The form of the Certificate of Designations, Preferences and Rights relating to the Preferred Stock (the
"Certificate of Designations") is set forth in Exhibit A. 

        Section 1.2    Authorization of Notes    

        The
Company has authorized the issue and sale of up to $5,000,000 aggregate principal amount of its 6% Subordinated Convertible Notes due 2002. The Notes shall be in the form set out in  Exhibit B.

        Section 1.3    Sale and Purchase of the Preferred Stock and the Notes    

        (a)   The
Company hereby agrees to sell, and each Purchaser hereby agrees to purchase, Notes in an aggregate principal amount, and shares of Preferred Stock up to an aggregate
liquidation preference, each as set forth opposite the name of each Purchaser on Schedule 1. The terms and conditions regarding the sale and purchase of the Notes and Preferred Stock are as set
forth herein. Each share of Preferred Stock initially shall have a liquidation preference of $100. 

        (b)   All
Notes shall be issued at the Initial Closing (as defined below), and the entire amount payable by each Purchaser in respect of the Notes shall be payable to the
Company, in immediately available funds. Subject to the terms and conditions hereof, the Preferred Stock shall be issued at the Subsequent Closing (as defined below), and payment therefor will be
payable by each Purchaser to the Company in immediately available funds. 

        Section 1.4    Right to Unpurchased Shares    

        In
the event that any Purchaser elects not to purchase any shares of Preferred Stock at the Subsequent Closing in accordance with the provisions of Article IIIA hereof, each of
the other Purchasers shall have the right to purchase such unpurchased shares of Preferred Stock. If more than one Purchaser wishes to purchase such unpurchased shares, the unpurchased shares shall be
allocated 

1

 

among
such Purchasers pro rata in accordance with the number of shares of Preferred Stock initially allocated to such Purchasers under this Agreement. 

 
 

ARTICLE II    
    
    CLOSINGS    
    

        Section 2.1    Initial Closing    

        The
sale of the Notes to the Purchasers shall take place at the offices of Mayer, Brown & Platt, 1675 Broadway, New York, New York 10019, at 10:00 a.m., New York time, at a
closing (the "Initial Closing") on July 17, 2000. At the Initial Closing, the Company will issue to Purchasers Notes registered in each
Purchaser's name (or in the name of its nominee), evidencing the aggregate principal amount of Notes to be purchased by such Purchaser against payment of the consideration payable by such Purchaser
for such Notes. The Company shall deliver to each Purchaser, at the Closing, each Purchaser's Notes. 

        Section 2.2    Subsequent Closing    

        (a)   The
sale of the Preferred Stock shall take place at the offices of Mayer, Brown & Platt, 1675 Broadway, New York, New York 10019, at 10:00 a.m., New York
time (the "Subsequent Closing") on a date determined as set forth below. The Purchasers shall be obligated to remit to the Company $150 million
of the Commitment Amount (as defined below) no later than on the third Business Day following the Subsequent Closing. Any Commitment Amount in excess of $150 million shall be remitted to the
Company by the Purchasers no later than ten Business Days after receipt of a demand for funding from the Company, as determined by the Board of Directors. 

        Funding
shall be made pro-rata, based on the Commitment Amount for each Purchaser. All remittances of Commitment Amounts by the Purchasers shall be made by wire transfer in
immediately available funds to the account specified by the Company. The Commitments shall remain in full force and effect for three years from the date of the Subsequent Closing. 

        (b)   The
Purchasers (which, subject to Section 2.2(i), shall include any Affiliate assignee thereof) may deliver to the Company commitment letters to purchase
Preferred Stock, stating the amount of liquidation preference thereof (the "Commitment Amount") in the form of  Exhibit C hereto (the "Commitments") beginning on the date of the written order of the U.S. Court
of Appeals for the Fifth Circuit relating to the FCC Litigation (the "FCC Decision Date"). If any Purchaser does not deliver its Commitment to the
Company by the close of business on the Commitment Determination Date (as defined below) then such Purchaser's right to purchase Preferred Stock hereunder shall be rescinded and terminated. 

        (c)   Each
Purchaser and the Company shall make any necessary filings for approvals under the Hart/Scott/Rodino Antitrust Improvement Act (the "HSR
Act") not later than the fifth Business Day following the Initial Closing and each Purchaser shall simultaneously provide the Company with notice and a copy of such filing. The
Purchasers shall immediately notify the Company upon receipt of the applicable approvals under the HSR Act. 

        (d)   If
as of the close of business on the fifteenth Business Day following the FCC Decision Date (such fifteenth Business Day, the "Commitment
Determination Date") the aggregate Commitment Amount is at least $245 million, the Subsequent Closing shall occur on a date determined by the Company as soon as
practicable after all necessary approvals under the HSR Act are received by the Company and each Purchaser. On the Business Day following the Commitment Determination Date, the Company shall notify
each Purchaser of the aggregate Commitment Amount as of the close of business on the Commitment Determination Date. 

2

 

        (e)   If
as of the close of business on the Commitment Determination Date the aggregate Commitment Amount is less than $245 million, the following shall occur: 

        (i)    Each
Purchaser shall have the right to terminate its Commitment and rescind its purchase of Preferred Stock by written notice delivered to the Company no later than
5:00 p.m. New York time on the Business Day following the Commitment Determination Date, and such Purchaser's Commitment shall terminate. 

        (ii)   The
Commitments of the Purchasers (including, subject to Section 2.2(i), any Affiliate assignee thereof) who do not terminate their Commitments pursuant to
paragraph (e)(i) above, shall become irrevocable, and such Purchasers shall have an exclusive right of first refusal to commit to purchase additional shares of Preferred Stock during the
seven Business Days following the Commitment Determination Date by delivering the corresponding additional Commitments to the Company. Such right of first refusal shall be exercisable
pro-rata, based on the total Commitment Amount for each Purchaser as of the close of business on the Business Day following the Commitment Determination Date. 

        (f)    If
as of the close of business on the seventh Business Day after the Commitment Determination Date the aggregate Commitment Amount is still less than
$245 million, the Company shall have the right, during the eighth through the twentieth Business Day following the Commitment Determination Date, to accept Commitments from additional
purchasers of Preferred Stock, subject to the same terms and conditions as the Purchasers, in order to reach the $245 million aggregate amount. After the Subsequent Closing, any additional
funding of Commitments made by any additional purchaser of Preferred Stock pursuant to this subsection (f) shall be made in an amount equal to the Commitment Amount corresponding to such
additional purchaser multiplied by a fraction, the numerator of which is $150 million and the denominator of which is the aggregate Commitment Amount as of the Subsequent Closing. 

        (g)   Notwithstanding
paragraph (f) above, if as of twelve o'clock noon, New York, time on the seventh Business Day after the Commitment Determination Date the
aggregate Commitment Amount is at least $150 million, the Subsequent Closing shall occur on the seventh Business Day following the Commitment Determination Date or a later date determined by
the Company, provided that all necessary approvals under the HSR Act have been received by the Company and the applicable Purchasers. 

        (h)   If
as of the close of business on the twentieth Business Day after the Commitment Determination Date the aggregate Commitment Amount is less than $150 million,
the purchase of the Preferred Stock shall be rescinded, and the Commitments shall terminate. 

        (i)    Any
Purchaser may purchase Preferred Stock hereunder in conjunction with only the following: (i) any of its Affiliates and (ii) any of its partners,
limited partners or members of such Purchaser that are transferees of Preferred Stock pursuant to distributions in accordance with the partnership agreement or operating agreement of such Purchaser or
its Affiliates; provided, in the case of (i) and (ii) above, that such Purchaser retains the voting rights relating to such Preferred
Stock. 

 
 

ARTICLE III    
    
    CONDITIONS TO INITIAL CLOSING    
    

        Each Purchaser's obligation to purchase and pay for the Notes to be sold to such Purchasers at the Initial Closing is subject to the satisfaction or waiver, prior
to or at the Initial Closing, of the following conditions. 

3

 

        Section 3.1    Representations and Warranties    

        The
representations and warranties of the Company contained in this Agreement shall be true and correct in all respects on and as of the date of the Initial Closing; and officers'
certificates to such effect executed by the Company shall be delivered to the Purchasers. 

        Section 3.2    Performance; No Default    

        The
Company shall have performed and complied with all agreements and conditions contained in this Agreement required to be performed or complied with by it prior to or at the Initial
Closing, and after giving effect to the issue and sale of the Notes (and the application of the proceeds thereof), no Default or Event of Default shall have occurred and be continuing. 

        Section 3.3    Consents and Approvals    

        The
Company and each Purchaser shall have obtained all consents, authorizations and approvals necessary for the consummation of the transactions involving the issuance and purchase of
the Notes contemplated hereby. The Board of Directors and the stockholders of the Company shall have duly adopted resolutions in form reasonably satisfactory to the Purchasers authorizing the Company
to consummate the transactions involving the issuance and purchase of the Notes contemplated hereby in accordance with the terms hereof. 

        Section 3.4    Board Observers    

        The
Company shall have appointed one person designated by Chase Capital Partners and one person designated by MC Venture Partners, as observers entitled to attend all meetings of the
Board of Directors of the Company held after the Initial Closing. In the event that Joseph T. McCullen, Jr. no longer serves on the Board of Directors or is no longer affiliated with Whitney &
Co., the Company shall appoint one person designated by Whitney & Co., as an observer entitled to attend all meetings of the Board of Directors. The Company hereby agrees to provide such
observers with all notices and written materials provided to directors of the Company after the Initial Closing simultaneously with delivery of such notices and materials to the directors. 

        Section 3.5    Opinion of Counsel    

        The
Purchasers shall have received from counsel for the Company, Andrews & Kurth L.L.P., a legal opinion in form and substance reasonably satisfactory to the Purchasers. 

        Section 3.6    Certificate of Designations    

        The
Certificate of Designations, Preferences and Rights of the Company's Series D Convertible Preferred Stock, substantially in the form set forth on  Exhibit A hereto, shall have been duly
accepted for filing by the office of the Secretary of State of the State of Delaware and shall be in full
force and effect. 

        Section 3.7    Documents    

        The
Company shall have executed and/or delivered to the Purchasers (or shall have caused to be executed and delivered to the Purchasers by the appropriate persons) the following: 

        (a)   The
Notes; 

        (b)   Certified
copies of resolutions of the Board of Directors (and, where necessary, the stockholders) of the Company authorizing the execution and delivery of this
Agreement, the Stockholders Agreement, the Certificate of Designations relating to the Preferred Stock, the issuance of the Preferred Stock and the Notes, and upon conversion of the Preferred Stock,
the issuance of Class C Common Stock; 

4

  

        (c)   A
copy of the amended certificate of incorporation of the Company, certified as of a recent date by the Secretary of State of the State of Delaware; 

        (d)   A
copy of the amended by-laws of the Company certified by the Company's Secretary; 

        (e)   Certificates
issued by the Secretary of State of the State of Delaware and such states in which the Company is qualified as a foreign corporation, certifying that the
Company is in good standing in their respective states; 

        (f)    Certificates
issued by the Secretary of State of such states in which the subsidiaries of the Company are incorporated, certifying that each of such subsidiaries is in
good standing in such states; and 

        (g)   Such
other supporting documents and certificates as the Purchasers may reasonably request. 

 
 

ARTICLE IIIA    
    
    CONDITIONS TO SUBSEQUENT CLOSING    
    

        Each Purchaser's obligation to purchase and pay for the Preferred Stock to be sold to such Purchaser at the Subsequent Closing is subject to the satisfaction or
waiver, prior to or at the Subsequent Closing, of the following conditions. 

        Section 3A.1    Representations and Warranties    

        The
representations and warranties of the Company contained in this Agreement shall be true and correct in all respects on and as of the date of the Subsequent Closing as if made on such
date. 

        Section 3A.2    Performance; No Default    

        The
Company shall have performed and complied with all agreements, covenants and conditions contained in this Agreement required to be performed or complied with by it prior to or at the
Subsequent Closing, and after giving effect to the issue and sale of the Preferred Stock (and the application of the proceeds thereof), no Default or Event of Default shall have occurred and be
continuing. 

        Section 3A.3    Consents and Approvals    

        The
Company and each Purchaser shall have obtained all governmental, third-party, Board and stockholder consents, authorizations and approvals necessary for the consummation of the
transactions contemplated hereby including, without limitation, under the HSR Act, as amended, which consents shall be in full force and effect. 

        Section 3A.4    Court Decision Satisfactory    

        The
written decision of the U.S. Court of Appeals for the Fifth Circuit relating to the Company's FCC Litigation shall be acceptable in all respects to each Purchaser in its sole and
absolute discretion, and the FCC Decision Date shall have been no later than the first anniversary of the date of this Agreement. 

        Section 3A.5    Shareholders Agreement    

        The
Amended and Restated Shareholders Agreement of the Company, substantially in the form set forth on Exhibit D hereto, shall have
been duly executed by all parties thereto and shall be in full force and effect. 

5

 

        Section 3A.6    Subordinated Convertible Notes and Preferred Stock    

        In
excess of 90% of all outstanding convertible notes and preferred stock of the Company shall have been converted in full into Class C Common Stock of the Company. 

        Section 3A.7    Opinions of Counsel    

        The
Purchasers shall have received from counsel for the Company, Andrews & Kurth L.L.P., and from FCC counsel to the Company, Skadden, Arps, Slate, Meagher & Flom, L.L.P.,
legal opinions in form and substance reasonably satisfactory to the Purchasers. 

        Section 3A.8    Fees and Expenses    

        All
fees and expenses incurred by the Company or any Purchaser in connection with the negotiation, preparation and execution of this Agreement and the consummation of the transactions
contemplated hereby, including, without limitation, the reasonable fees and expenses of counsel to the Purchasers, shall be deducted from the proceeds remitted to the Company on the Subsequent
Closing; provided, however, that the total fees and expenses of counsel to the Purchasers shall not
exceed $100,000 with respect to the Initial Closing and an amount to be agreed upon by the Company with respect to the Subsequent Closing. The fees for the applicable Purchasers' HSR Act filings shall
be paid by the Company at the time of such filings. 

        Section 3A.9    Debt Reduction    

        Immediately
prior to the Subsequent Closing, total outstanding indebtedness for funded debt or available borrowings to the Company, not including the Notes issued at the Initial Closing,
shall not exceed $114 million, including debt evidenced by loans from the FCC and Lucent Technologies, Inc., and all documentation governing or evidencing such indebtedness and any
collateral therefor shall be acceptable to each Purchaser in its sole and absolute discretion. 

        Section 3A.10    Material Adverse Change    

        In
the sole and absolute judgment of each Purchaser, there shall have occurred no material and adverse change in the business, finances or prospects of the Company, or in the conditions
or prospects of the PCS market in any of the Company's BTAs. 

        Section 3A.11    Documents    

        The
Company shall have executed and/or delivered to the Purchasers (or shall have caused to be executed and delivered to the Purchasers by the appropriate persons) the following: 

        (a)   Certificates
representing the Preferred Stock; 

        (b)   Certified
copies of resolutions of the Board of Directors (and, where necessary, the stockholders) of the Company authorizing the execution and delivery of this
Agreement, the Stockholders Agreement, the Certificate of Designations relating to the Preferred Stock, the issuance of the Preferred Stock and the Notes, and upon conversion of the Preferred Stock,
the issuance of Class C Common Stock; 

        (c)   A
copy of the amended certificate of incorporation of the Company, including the Certificate of Designations relating to the Preferred Stock, certified as of a recent
date by the Secretary of State of the State of Delaware; 

        (d)   A
copy of the amended by-laws of the Company certified by the Company's Secretary; 

        (e)   Certificates
issued by the Secretary of State of the State of Delaware and such states in which the Company is qualified as a foreign corporation, certifying that the
Company is in good standing in their respective states; 

6

 

        (f)    Certificates
issued by the Secretary of State of such states in which the subsidiaries of the Company are incorporated, certifying that each of such subsidiaries is in
good standing in such states; and 

        (g)   Such
other supporting documents and certificates as the Purchasers may reasonably request. 

        Section 3A.12    Certificate of Compliance    

        The
Company shall have delivered to the Purchasers an officer's certificate certifying that all of the foregoing conditions have been satisfied, and which shall meet the representations
and warranties set forth in Section 4.7 below. 

 
 

ARTICLE IV    
    
    REPRESENTATIONS AND WARRANTIES OF THE COMPANY    
    

        The Company represents and warrants to, and covenants and agrees with, the Purchasers as follows: 

        Section 4.1    Organization; Power and Authority    

        The
Company and each subsidiary is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware, and is duly qualified to conduct business
as a foreign corporation and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in
good standing could not, individually or in the aggregate, have a Material Adverse Effect. The Company and each subsidiary has the corporate power and authority to own or hold under lease the
properties it purports to own or hold under lease, to transact the business it transacts and proposes to transact, to execute and deliver this Agreement, the Notes and the Preferred Stock and to
perform the provisions hereof and thereof. The copies of the certificate of incorporation and by-laws of the Company and each of its Subsidiaries, each as amended to date, which have been
furnished to counsel for the Purchasers, are correct and complete at the date hereof. Neither the Company nor any of its Subsidiaries is in violation of any term of its certificate of incorporation or
by-laws or any material agreement, instrument, judgment, decree, order, statute, rule or government regulation applicable to the Company or any of its Subsidiaries, except for violations
which, singly or in the aggregate, would not have a Material Adverse Effect. 

        Section 4.2    Authorization    

        Each
of the Transaction Documents, at the time of execution and delivery of such document and at the Initial Closing and Subsequent Closing, as applicable, shall have been duly
authorized by all necessary action on the part of the Company, and, assuming the due authorization, execution and delivery of each Transaction Document by each of the other parties thereto, each of
the Transaction Documents shall constitute a legal, valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be
limited (i) by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally, (ii) by general principles of
equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) to the extent that rights to indemnification and contribution may be limited by
the federal or state securities laws or public policy relating thereto. Other than as may be required under the Hart/Scott/Rodino Antitrust Improvement Act, as amended, and Regulation D under
the Securities Act (which filing shall be made by the Company in accordance therewith), no consent, approval or authorization of, or designation, declaration or filing with, any Governmental Authority
including, without limitation, the FCC, is required of the Company in connection with the execution, delivery and performance of this Agreement or the consummation of the transactions contemplated
hereby. 

7

 

        Section 4.3    Organization and Ownership of Shares of Subsidiaries    

        Schedule 2 sets forth a complete and accurate list of all Subsidiaries of the Company and the jurisdiction of organization of each.
Each Subsidiary is a corporation or other legal entity duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified to conduct
business as a foreign corporation or other legal entity and is in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the
failure to be so qualified or in good standing could not, individually or in the aggregate, have a Material Adverse Effect. Each such Subsidiary has the corporate or other power and authority to own
or hold under lease the properties it purports to own or hold under lease and to transact the business it transacts and proposes to transact. 

        Section 4.4    Compliance with Laws, Other Instruments, etc    

        The
execution, delivery and performance by the Company of this Agreement, after taking into account the use of the proceeds thereof, will not (a) conflict with or result in any
default under any material agreement, contract, obligation or commitment of the Company or any of its Subsidiaries or any charter or by-law provision or corporate restriction of the
Company or any of its Subsidiaries; (b) result in the creation of any lien, charge or encumbrance of any nature upon any of the properties or assets of the Company or any of its Subsidiaries;
or (c) violate any material instrument, judgment, decree, order, statute, rule or regulation of any federal, state or local government or agency applicable to the Company or any of its
Subsidiaries or to which the Company or any of its Subsidiaries is a party. 

        Except
as disclosed in Schedule 4.4 each of the Company and its Subsidiaries has all franchises, permits, licenses and other rights
and privileges necessary to permit it to own its property and to conduct its business as it is presently conducted by the Company and each of its Subsidiaries except where the failure to possess such
rights and privileges would not have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is in violation, in any material respect, of any law, regulation, authorization or order
of any public authority and the Company and each of its Subsidiaries is in compliance, in all material respects, with all federal, state and local laws and regulations (including all applicable
environmental laws and regulations) relating to its business as presently conducted, except as disclosed in Schedule 4.4. None of the Company,
any of its Subsidiaries or any of their respective affiliates has been: (a) convicted in a criminal proceeding or named as a subject of a pending criminal proceeding (excluding traffic
violations and other minor offenses); (b) subject to any order, judgment, or decree (not subsequently reversed, suspended or vacated) of any court of competent jurisdiction permanently or
temporarily enjoining it or him from, or otherwise imposing limits or conditions on his, engaging in any securities, investment advisory, banking, insurance or other type of business or acting as an
officer or director of a public company; or (c) found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission or the Commodity Futures Trading
Commission to have violated any federal or state commodities, securities or unfair trade practices law, which such judgment or finding has not been subsequently reversed, suspended, or vacated. 

        Section 4.5    Litigation    Except as disclosed in  Schedule 4.5 there are no actions, suits or proceedings pending or, to the
knowledge of the Company, threatened against or affecting the Company
in any court or before any arbitrator of any kind or before or by any Governmental Authority that, individually or in the aggregate, could have a Material Adverse Effect on the Company or on the power
and ability of the Company to perform its obligations under any Transaction Document, or to consummate the transactions contemplated hereby and thereby. 

        Section 4.6    Non-Registration    Neither the Company nor anyone acting on its behalf has taken,
or will take, any action that would subject the issuance or sale of the Notes or Preferred Stock to the registration requirements of Section 5 of the Securities Act. 

8

   
        Section 4.7    Capitalization of the Company    

        (a)   The
authorized capital stock of the Company and each Subsidiary is set forth on Schedule 4.7. All securities set
forth on Schedule 4.7 will be, as of the Initial Closing and the Subsequent Closing, duly and validly issued, outstanding, fully paid and
nonassessable. Neither the Company nor any of its Subsidiaries has issued any other shares of its capital stock and, except as set forth on  Schedule 4.7, there are no outstanding warrants, options
or other rights to purchase or acquire any of such shares, nor any outstanding
securities convertible into such shares or outstanding warrants, options or other rights to acquire any such convertible securities. After giving effect to the Initial Closing and the Subsequent
Closing and assuming the accuracy of the Purchaser representations set forth herein, all of the outstanding shares of capital stock of the Company will have been offered, issued, sold and delivered in
compliance with applicable federal and state securities laws not subject to preemptive rights in favor of any Person and will not result in the issuance of additional shares of capital stock of the
Company or the triggering of any antidilution or similar rights contained in any agreement to which the Company is a party. The Preferred Stock has been duly and validly authorized and, when delivered
and paid for pursuant to this Agreement, will be validly issued, fully paid and nonassessable. The pro-forma capitalization of the Company immediately following the Initial Closing and the
Subsequent Closing is set forth in Section 4.7, subject to the assumptions included therein. The Company has authorized and reserved for issuance upon conversion of the Preferred Stock
sufficient shares of its Class C Common Stock, and the shares issuable upon such conversion will be, when issued in accordance with the charter of the Company, duly and validly authorized and
issued, fully paid and nonassessable. 

        Except
as set forth on Schedule 4.7 or pursuant to the Stockholders Agreement or the Company's charter, there are no preemptive
rights, rights of first refusal, put or call rights or obligations or anti-dilution rights with respect to the issuance, sale or redemption of the Company's capital stock. Except as set
forth on Schedule 4.7, no officer, director or employee of the Company or any other person or entity has, claims to have or has any right to
claim to have any interest in the Company's capital stock. Except as disclosed in Schedule 4.7, there are no restrictions on the transfer of the
Company's capital stock other than those arising from federal and state securities laws, FCC rules or pursuant to the Stockholders Agreement. Except as set forth on  Schedule 4.7, or pursuant to the
Stockholders Agreement, there are no rights, obligations, or restrictions on the voting of any of the Company's
capital stock or the registration of such capital stock for offering to the public pursuant to the Securities Act. 

        (b)   The
outstanding shares of the capital stock, before giving effect to the transactions contemplated by this Agreement, are held of record and beneficially by the persons
identified in Schedule 4.7 in the amounts indicated therein. 

        (c)   Other
than the Subsidiaries, the Company does not own or have any direct or indirect interest in, a loan or advance to (other than trade receivables incurred in the
ordinary course of business), or control over any corporation, partnership, joint venture or other entity of any kind. The record and beneficial ownership of all outstanding securities of such
Subsidiaries is as set forth on Schedule 4.7.

        Section 4.8    Financial Statements    

        Attached
as Schedule 4.8 are the following financial statements of the Company, all of which statements (including the footnotes
and schedules thereto and subject to normal year-end adjustments with respect to the statements referred to in clause (b) below) were prepared in accordance with GAAP as in effect
for the period of each such statement, fairly present in all material respects the financial condition of the Company and each of its Subsidiaries on the dates of such statements and the results of
their operations and cash flows for the periods covered thereby and are true and complete: (a) unaudited consolidated balance sheets, consolidated statements of income, retained earnings and
cash flow for period ended March 31, 2000; and (b) audited consolidated balance sheet of the Company as of December 31, 1999 and December 31, 1998, and the related
consolidated 

9

 

statements
of income, retained earnings, cash flow for the fiscal years then ended (the financial statements referred to in this clause (b) are herein referred to as the "Audited Financial
Statements," and the financial statements referred to in this clause (b) and clause (a) are hereafter collectively referred to as the "Financial Statements"). 

        Section 4.9    Absence of Undisclosed Liabilities    

        Except
as and to the extent (i) disclosed in Schedule 4.9, (ii) incurred as a result of or arising out of the
transactions contemplated under this Agreement or (iii) incurred since the date of the latest Audited Financial Statements in the ordinary course of business, neither the Company nor any of its
Subsidiaries has any material liability or liabilities of any nature, whether accrued, absolute, contingent or otherwise, asserted or unasserted. 

        Section 4.10    Absence of Certain Developments    

        Except
as disclosed in Schedule 4.10, since December 31,1999 there has been (i) no material adverse change in the
condition (financial or otherwise) of the Company or in the assets, liabilities, business or prospects of the Company, (ii) no declaration, setting aside or payment of any dividend or other
distribution with respect to, or any direct or indirect redemption or acquisition of, any of the capital stock of the Company or any of its Subsidiaries, (iii) no waiver of any valuable right
of the Company or
any of its Subsidiaries or cancellation of any material debt or claim held by the Company or any of its Subsidiaries, (iv) no loan by the Company or any of its Subsidiaries to any officer,
director, employee or stockholder of the Company or any of its Subsidiaries, or affiliates of any of the foregoing or any agreement or commitment therefor, (v) no compensation paid or payable
to any non-employee stockholder or any material increase in the compensation paid or payable to any officer, director, employee or agent of the Company or any of its Subsidiaries,
(vi) no material loss, destruction or damage to any property of the Company or any of its Subsidiaries, whether or not insured, (vii) no material labor dispute involving the Company or
any of its Subsidiaries and no material change in the personnel of the Company or any of its Subsidiaries or the terms and conditions of their employment, (viii) no acquisition or disposition
of any assets (or any contract or arrangement therefor) except in the ordinary course of business nor any other transaction by the Company or any of its Subsidiaries otherwise than for fair value in
the ordinary course of business, (ix) no change in accounting methods or practices of the Company or any of its Subsidiaries, (x) no loss, or any development that is expected to result
in a loss, of any significant supplier, customer, distributor or account of the Company or any of its Subsidiaries (other than the completion in the ordinary course of business of specific projects
for customers), and (xi) no amendment or termination of any contract or agreement to which the Company is a party or by which it is bound which has had a Material Adverse Effect. 

        Section 4.11    Title to Properties    

        Schedule 4.11 sets forth the addresses and uses of all real property that the Company and its Subsidiaries own, lease or sublease.
Each of the Company and its Subsidiaries has good and marketable title to or a valid leasehold interest in all of its properties and assets, real or personal, tangible or intangible, free and clear of
all liens, restrictions or encumbrances, except as disclosed in Schedule 4.11, and such properties and assets constitute all of the assets
currently used in the conduct of the Company's and its Subsidiaries' business. All machinery and equipment included in such properties which is necessary to the business of the Company and each of its
Subsidiaries is in good condition and repair in all material respects (ordinary wear and tear excepted) and all leases of real or personal property to which the Company and each of its Subsidiaries is
a party are in full force and effect. Neither the Company nor any of its Subsidiaries is in violation of any material zoning, building or safety ordinance, regulation or requirement or other law or
regulation applicable to the operation of its owned or leased properties, except for violations which, singly or in the aggregate, would not have a Material Adverse Effect, nor has the Company or any
of its Subsidiaries received any written notice of violation with which it has not complied in all material respects. 

10

 

        Section 4.12    Tax Matters    

        Except
as set forth in Schedule 4.12 attached hereto: 

        (a)   The
Company and each of its Subsidiaries have paid or caused to be paid all federal, state, local, foreign, and other taxes, including without limitation, income taxes,
estimated taxes, alternative minimum taxes, excise taxes, sales taxes, franchise taxes, employment and payroll-related taxes, withholding taxes, transfer taxes, and all deficiencies, or other
additions to tax, interest, fines and penalties owed by them (collectively, "Taxes"), required to be paid by them through the date hereof whether disputed or not. All Taxes and other assessments and
levies which the Company and each of its Subsidiaries is required to withhold or collect have been withheld and collected and have been paid over to the proper governmental authorities. Except as set
forth on Schedule 4.12, the Company and each of its Subsidiaries have, in accordance with applicable law, timely and properly filed all federal,
state, local and foreign tax returns required to be filed by it through the date hereof, all such returns correctly and accurately set forth in all material respects the amount of any Taxes relating
to the applicable period and any deductions from, or credits against any Taxes or taxable income relating to such returns are valid and proper items of deduction or credit. 

        (b)   Neither
the Internal Revenue Service ("IRS") nor any other Governmental Authority is now asserting or, to the knowledge of the Company, threatening to assert against the
Company or any of its Subsidiaries any deficiency or claim for additional Taxes. Except as set forth on Schedule 4.12, no claim has been made in writing since December 31, 1997 by an
authority in a jurisdiction where the Company or any of its Subsidiaries does not file reports and returns that the Company or any of its Subsidiaries is or may be subject to taxation by that
jurisdiction. There are no security interests on any of the assets of the Company or any of its Subsidiaries that arose in connection with any failure (or alleged failure) to pay any Taxes. Neither
the Company nor any of its Subsidiaries is currently a party or subject to or bound by a closing agreement pursuant to Section 7121 of the Internal Revenue Code of 1986, as amended (the
"Code"). Neither the Company nor any of its Subsidiaries is or ever has been a "personal holding company" as defined under Section 541 of the Code. There has not been any audit of any Tax
return filed by the Company or any of its Subsidiaries for any period ending on or after December 31, 1997, no such audit is in progress, and neither the Company nor any of its Subsidiaries has
been notified by any tax authority that any such audit is contemplated or pending. Except as set forth on Schedule 4.12, no extension of time
with respect to any date on which a Tax return was or is to be filed by the Company or any of its Subsidiaries is in force, and no waiver or agreement by the Company or any of its Subsidiaries, is in
force for the extension of time for the assessment or payment of any Taxes. Neither the Company nor any of its Subsidiaries is or has ever been a member of an affiliated group filing a consolidated
federal income tax return. Neither the Company nor any of its Subsidiaries has any liability for the Taxes of any other person or entity under Treasury Regulations § 1.1502.6 (or any
similar provision of foreign, state or local laws) or otherwise. 

        (c)   For
purposes of this Agreement, all references to Sections of the Code shall include any predecessor provisions to such Sections. 

        Section 4.13    Contracts and Commitments    

        Except
as set forth on Schedule 4.13, neither the Company nor any of its Subsidiaries is a party to any: (1) customer
contract, obligation or commitment (whether written or oral) which involves an unfulfilled obligation to provide goods or services valued in excess of $100,000 to any other party; (2) contract,
obligation or commitment (whether written or oral) involving an obligation to make payments in excess of $100,000 to any other party; (3) exclusive license agreements; (4) employment
contracts; (5) stock redemption or purchase agreements; (6) loan agreements; (7) capital lease or other financing agreements; (8) agreements with any officers, directors,
or stockholders of the Company or any of its Subsidiaries or persons or organizations related to or affiliated with the Company or any of 

11

 

its
Subsidiaries; (9) leases; (10) powers of attorney; (11) pension, profit-sharing, retirement or stock option plans; or (12) other material contract not executed in the
ordinary course. All such contracts, agreements, leases and instruments, assuming the due authorization, execution and delivery thereof by each of the other parties thereto, are valid and in full
force and effect and constitute legal, valid and binding obligations of the Company or its Subsidiaries and are enforceable in accordance with their respective terms except as such enforceability may
be limited (i) by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors' rights generally, (ii) by general principles
of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) to the extent that rights to indemnification and contribution may be limited by
the federal or state securities laws or public policy relating thereto. Except for the express terms of such agreements, there is no basis for the termination, expiration or modification of any such
agreements within one year from the date hereof, which termination, expiration or modification would have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is in default under
any contract, obligation or commitment set forth on Schedule 4.13, and to the Company's knowledge, there is no state of facts which upon notice
or lapse of time or both would constitute such a default, except for defaults which, singly or in the aggregate, are not likely to result in a Material Adverse Effect. 

        Section 4.14    Environmental Matters    

        (a)   To
the knowledge of the Company, none of the Company, any of its Subsidiaries, their respective employees and agents or any other person has ever caused any Hazardous
Material (as defined below) to be spilled, placed, held, located or disposed of on, under, or about, any of the premises owned or leased by the Company or any of its Subsidiaries (the "Premises"), or
from the Premises into the atmosphere, any body of water, any wetlands, or on any other real property nor to the Company's knowledge, does any Hazardous Material exist on, under or about the Premises
other than as disclosed on Schedule 4.14, or in respect of Hazardous Material used or disposed of in compliance with law. The Premises have never
been used (whether by the Company or any of its Subsidiaries or, to the knowledge of the Company, by any other person) as a treatment, storage or disposal (whether permanent or temporary) site for any
Hazardous Waste as defined in 42 U.S.C.A. §6901, et seq. (the Resource Recovery and Conservation Act). Neither the Company nor any of its Subsidiaries has received any notice of violation,
lien or other notice issued by any governmental agency with respect to the environmental condition of the Premises, any other property owned or occupied by the Company or any of its Subsidiaries, or
any other property which was included in the property description of the Premises or such other real property within the preceding three years except as disclosed in  Schedule 4.14. 

        (b)   For
purposes of this Section 4.14, "Hazardous Material" shall mean any substance or material defined or designated as a hazardous or toxic waste, hazardous or
toxic material, hazardous or toxic substance, or other similar term, by any United States federal, state or local environmental statute, regulation or ordinance. 

        Section 4.15    Affiliate Transactions    

        Except
as set forth in Schedule 4.15 hereto, none of the Company, any of its Subsidiaries, or any director or officer of the
Company or any of its Subsidiaries owns, directly or indirectly, on an individual or joint basis, any material interest (for purposes of this Section 4.15 "material interest" shall mean
ownership in excess of 1% of the fully diluted shares of common stock of the Company) in, or serves as an officer, director, partner or in another similar capacity of, any competitor or supplier of
Company or any of its Subsidiaries, or any organization which has a contract or arrangement with the Company or any of its Subsidiaries. After giving effect to the transactions contemplated hereby,
neither the Company nor any of its Subsidiaries shall have any obligation or liability to any stockholder, other than as disclosed herein or in the Schedules hereto. 

12

   
        Section 4.16    Intellectual Property    

        (a)   Set
forth in Schedule 4.16 is a list and brief description of all patents, patent rights, patent applications,
registered or common law trademarks, trademark applications, service marks, service mark applications, trade names and registered or common law copyrights owned by or registered in the name of the
Company or any of its Subsidiaries, or of which the Company or any of its Subsidiaries is a licensor or licensee (other than with respect to "off-the-shelf" software which is
generally available to the general public at retail) or in which the Company or any of its Subsidiaries has any right, and in each case a brief description of the nature of such right. Except as set
forth on Schedule 4.16, the Company and each of its Subsidiaries owns or possesses exclusive licenses or other rights (other than with respect to
"off-the-shelf" software which is generally available to the general public at retail) to use, free and clear of claims or rights of any other person, all patents, patent
applications, registered or common law trademarks, trademark applications, registered or common law service marks, service mark applications, trade names, copyrights, manufacturing processes,
programming processes and software, algorithms, formulae, trade secrets and know how (collectively, "Intellectual Property", it being understood that the term "Intellectual Property" does not include
the Company's FCC licenses) necessary to the conduct of its business as presently conducted or as proposed to be conducted. Except as disclosed in  Schedule 4.16, all Intellectual Property that is
used or incorporated into the Company's or any of its Subsidiaries' products or products
actively under development and which is proprietary to the Company or such Subsidiary was developed by or for the Company or such Subsidiary by the current or former employees, consultants or
independent contractors of the Company or such Subsidiary or its predecessors in interests and is owned exclusively by the Company or such Subsidiary, free and clear of claims or rights of any other
person. Neither the Company nor any of its Subsidiaries is aware of any infringement by any other person of any rights of the Company or any of its Subsidiaries under any Intellectual Property. No
claim is pending or to the best of the Company's knowledge threatened against the Company or any of its Subsidiaries nor has the Company received any notice from any third parties, to the effect that
any Intellectual Property owned or licensed by the Company or any of its Subsidiaries, or which the Company or any of its, Subsidiaries otherwise has the right to use, or the operation, products or
services of the Company or any of its Subsidiaries infringe upon or conflict with the asserted rights of any other person under any Intellectual Property, and, to the best knowledge of the Company,
there is no basis for any such claim (whether or not pending or threatened). No claim is pending or to the best of the Company's knowledge threatened against the Company or any of its Subsidiaries,
nor has the Company or any of its Subsidiaries received any notice from any third parties, to the effect that any Intellectual Property owned or licensed by the Company or any of its Subsidiaries, or
which the Company or any of its Subsidiaries otherwise has the right to use, is invalid or unenforceable by the Company or any of its Subsidiaries, as the case may be, and, to the best knowledge of
the Company, there is no basis upon which any such claim (whether or not pending or threatened) should reasonably be anticipated. 

        (b)   All
licenses or other agreements under which the Company and its Subsidiaries are granted rights in Intellectual Property (other than with respect to
"off-the-shelf" software which is generally available to the general public at retail) are listed in Schedule 4.16. All
such licenses or other agreements are in full force and effect, and to the Company's knowledge, there is no material default by any party thereto, and, except as set forth on  Schedule 4.16, all of
the rights of the Company and its Subsidiaries thereunder are freely assignable. 

        (c)   All
licenses or other agreements under which the Company and its Subsidiaries have granted rights to others in Intellectual Property (including all end user agreements)
are listed in Schedule 4.16. All of said licenses or other agreements are in full force and effect, and to the Company's knowledge, there is no
material default by any party thereto. 

        (d)   All
material technical information developed by or belonging to the Company or any of its Subsidiaries and which is material to the business of the Company or any of its
Subsidiaries which has 

13

 

not
been patented or copyrighted has been kept confidential. To the Company's knowledge, neither the Company nor any of its Subsidiaries is making unlawful use of any Intellectual Property of any
other person, including without limitation any former employer of any past or present employees of the Company or any of its Subsidiaries. Except as disclosed in  Schedule 4.16, to the Company's
knowledge, neither the Company nor any of its Subsidiaries nor any of their respective employees, officers or
consultants has any agreements or arrangements with former employers of such employees, officers or consultants relating to any Intellectual Property of such employers, which materially interfere or
conflict with the performance of such employee's or consultant's duties for the Company or any of its Subsidiaries or results in any former employers of such employees and consultants having any
rights in, or claims on, the Company's or such Subsidiary's Intellectual Property. To the Company's knowledge, the activities of the Company's and its Subsidiaries' employees, officers and consultants
do not violate any agreements or arrangements which any such employees have with former employers. Each of the Company and its Subsidiaries has taken commercially reasonable steps required to
establish and preserve its ownership of all of the Intellectual Property. 

        (e)   Without
limitation of any of the foregoing and except as otherwise expressly disclosed in Schedule 4.16 hereto:
(i) each of the Company and its Subsidiaries has taken reasonable security measures to guard against unauthorized disclosure or use of any of the Intellectual Property; and (ii) neither
the Company nor any of its Subsidiaries is aware that any person (including without limitation any former employee of the Company) has unauthorized possession of any of the Intellectual Property, or
any part thereof, or that any person has obtained unauthorized access to any of the Intellectual Property. 

        (f)    Notwithstanding
the foregoing, except as set forth on Schedule 4.16, the Company does not have, and shall not
have, any liability as a result of a breach of a representation, warranty or covenant relating to Year 2000 compliance contained in any agreement with a third party entered into on or before the
Closing Date. 

        Section 4.17    Employee Benefit Plans    

        (a)   Schedule 4.17 sets forth a list of every Employee Program (as defined below) that has been maintained (as such
term is further defined below) by the Company or any of its Subsidiaries at any time during the three-year period ending on the Initial Closing. 

        (b)   Each
Employee Program which has ever been maintained by the Company or any of its Subsidiaries and which has at any time been intended to qualify under
Section 401(a) or 501(c)(9) of the Code has received a favorable determination or approval letter from the IRS regarding its qualification under such section and has been continuously qualified
under the applicable section of the Code since the effective date of such Employee Program. No event or omission has occurred which would cause any such Employee Program to lose its qualification
under the applicable Code section. 

        (c)   Each
Employee Program which has ever been maintained by the Company or any of its Subsidiaries has been maintained in all material respects in compliance with all
applicable laws. With respect to any Employee Program ever maintained by the Company or any of its Subsidiaries, no "prohibited transaction," as defined in Section 406 of the Employee
Retirement Income Security Act of 1974, as amended ("ERISA"), or Section 4975 of the Code (for which there exists neither a statutory nor regulatory exemption), has occurred which could result,
directly or indirectly (including, without limitation, through any obligation of indemnification or contribution), in any material taxes, penalties or other liability to the Company or any of its
Subsidiaries or any of their Affiliates (as defined below). No officer, director or employee of the Company or any of its Subsidiaries has committed a material breach of any fiduciary duty imposed
under by Title 1 of ERISA with respect to any Employee Program maintained by the Company or any of its Subsidiaries within the six years preceding the Closing Date. No litigation, arbitration, or
governmental administrative proceeding (or known 

14

 

investigation)
or other proceeding (other than those relating to routine claims for benefits) is pending or, to the best knowledge of the Company, threatened with respect to any such Employee Program. 

        (d)   None
of the Company, any of its Subsidiaries, or any Affiliate has incurred any liability under Title IV of ERISA which has not been paid in full prior to the Closing.
There has been no "accumulated funding deficiency" (whether or not waived) with respect to any Employee Program ever maintained by the Company, any of its Subsidiaries, or any Affiliate and subject to
Code Section 412 or ERISA Section 302. With respect to any Employee Program maintained by the Company, any of its Subsidiaries, or any Affiliate and subject to Title IV of ERISA, there
has been no (nor will there be any as a result of the transactions contemplated by this Agreement) (i) "reportable event," within the meaning of ERISA Section 4043 or the regulations
thereunder, for which the notice requirement is not waived by the regulations thereunder, or (ii) event or condition which presents a material risk of a plan termination or any other event that
may cause the Company, any of its Subsidiaries, or any Affiliate to incur liability or have a lien imposed on its assets under Title IV of ERISA. Except as described in  Schedule 4.17 attached
hereto, no Employee Program maintained by the Company, any of its Subsidiaries, or any Affiliate and subject to Title IV
of ERISA (other than a Multiemployer Plan) has any "unfunded benefit liabilities" within the meaning of ERISA Section 4001(a)(18), as of the Closing Date. None of the Company, any of its
Subsidiaries, or any Affiliate has ever maintained a Multiemployer Plan. 

        (e)   For
purposes of this Section 4.17: 

        (i)    "Employee
Program" means (A) all employee benefit plans within the meaning of ERISA Section 3(3), including, but not limited to, multiple employer welfare
arrangements (within the meaning of ERISA Section 3(40)), plans to which more than one unaffiliated employer contributes and employee benefit plans (such as foreign or excess benefit plans)
which are not subject to ERISA; and (B) all stock or cash option plans, restricted stock plans, bonus or incentive award plans, severance pay policies or agreements, deferred compensation
agreements, supplemental income arrangements, vacation plans, and all other employee benefit plans and benefit agreements not described in (A) above. In the case of an Employee Program funded
through an organization described in Code Section 501(c)(9), each reference to such Employee Program shall include a reference to such organization. 

        (ii)   An
entity "maintains" an Employee Program if such entity sponsors, contributes to, or provides (or has promised to provide) benefits under such Employee Program, or has
any obligation (by agreement or under applicable law) to contribute to or provide benefits under such Employee Program. 

        (iii)  An
entity is an "Affiliate" of the Company or any of its Subsidiaries if it would have ever been considered a single employer with the Company or such Subsidiary under
ERISA Section 4001(b) or part of the same "controlled group" as the Company or such Subsidiary for purposes of ERISA Section 302(d)(8)(C). 

        (iv)  "Multiemployer
Plan" means a (pension or non-pension) employee benefit plan to which more than one employer contributes and which is maintained pursuant to
one or more collective bargaining agreements. 

        Section 4.18    Employee and Labor Matters    

        Neither
the Company nor any of its Subsidiaries is delinquent in payments to any of its employees for any wages, salaries, commissions, bonuses or other direct compensation for any
services performed for it to the date hereof or amounts required to be reimbursed to such employees. Neither the Company nor any of its Subsidiaries has any policy, practice, plan or program of paying
severance pay or any form of severance compensation in connection with the termination of employment, except as set forth in Schedule 4.18. All
of the Company's and its Subsidiaries' programs and/or arrangements in 

15

 

connection
with the payment of commissions are described in Schedule 4.18. The Company and each of its Subsidiaries is in compliance in all
material respects with all applicable laws and regulations respecting labor, employment, fair employment practices, work place safety and health, terms and conditions of employment, and wages and
hours. There are no charges of employment discrimination or unfair labor practices, nor are there any strikes, slowdowns, stoppages of work, or any other concerted interference with normal operations
which are existing, pending or to the Company's knowledge threatened against or involving the Company or any of its Subsidiaries. None of the Company or any of its Subsidiaries has received any notice
indicating that any of its employment policies or practices is currently being audited or investigated by any federal, state or local government agency. To the Company's knowledge, the Company and
each of its Subsidiaries is, and has at all times been, in compliance with the requirements of the Immigration Reform Control Act of 1986.  Schedule 4.18 sets forth a complete list of each officer,
employee, salesperson and consultant who received or is scheduled to receive total
remuneration from the Company and each of its Subsidiaries in excess of $100,000 for the calendar year ended December 31, 2000. 

        Section 4.19    Brokers' and Finders' Fees    

        Except
with respect to Chase Securities, Inc., the Company has not incurred, nor will it incur, directly or indirectly, any liability for brokerage or finders' fees or agents'
commissions or any similar charges in connection with this agreement or any transaction contemplated hereby. 

        Section 4.20    Insurance    

        Schedule 4.20 lists all insurance policies and fidelity bonds currently in effect covering the assets, the business, equipment,
properties, operations, employees, officers and directors of the Company. There is no claim by the Company pending under any of such policies or bonds as to which the Company has received actual
notice that coverage has been questioned, denied or disputed by the underwriters of such policies or bonds. All premiums due and payable under all such policies and bonds have been paid and the
Company is otherwise in compliance with the terms of such policies and bonds (or other policies and bonds providing substantially similar insurance coverage). To the knowledge of the Company, there is
no threatened termination of, or premium increase with respect to, any of such
policies. To the Company's knowledge, all such policies are underwritten by financially sound and reputable insurers, are sufficient for all applicable legal requirements and otherwise are in
compliance with the criteria set forth in Section 7.6 hereof. 

        Section 4.21    Private Sale    

        The
Company has not, either directly or through any agent, offered any Preferred Stock on Notes or any other securities to, or solicited any offers to acquire any Preferred Stock or
Notes or any other securities from, or otherwise approached, negotiated or communicated in respect of any Preferred Stock or Notes or any other securities with, any Person in such a manner as to
require that the offer or sale of the Preferred Stock or Notes or any such other securities be registered pursuant to the Securities Act or any "blue sky" laws. 

16

  

 
 

ARTICLE V    
    
    REPRESENTATIONS AND WARRANTIES OF PURCHASERS    
    

        Each Purchaser severally (and not jointly) represents and warrants to, and covenants and agrees with, the Company as follows: 

        Section 5.1    Purchase for Investment    

        Such
Purchaser is purchasing the Preferred Stock, the Notes and the shares of Class C Common Stock issuable upon conversion of the Preferred Stock for its own account, for
investment purposes and not with a view to, or for resale in connection with, any distribution or public offering thereof within the meaning of the Securities Act. Notwithstanding the foregoing, the
parties hereto acknowledge that J. H. Whitney IV, L.P. shall acquire a portion of the Preferred Stock, the Notes and the shares of Class C Common Stock issuable upon conversion of the Preferred
Stock in its capacity as nominee for Whitney Strategic Partners IV, L.P., an affiliated investment fund with the same general partner entity as J.H. Whitney IV, L.P. 

        Section 5.2    Unregistered Securities; Legend    

        Such
Purchaser understands that the shares of Preferred Stock, the Notes and the shares of Class C Common Stock issuable upon conversion of the Preferred Stock to be issued
pursuant to this Agreement have not been registered under the Securities Act and will be issued in reliance upon an exemption from the registration requirements thereof. Such Purchaser acknowledges
that the Preferred Stock and the Notes, and the certificates representing the shares of Class C Common Stock issuable upon conversion of the Preferred Stock, shall each bear a restrictive
legend substantially as follows: 

        THE
SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 (THE "ACT"), OR ANY STATE SECURITIES OR BLUE
SKY LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT (1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO
SUCH SECURITIES WHICH IS EFFECTIVE UNDER THE ACT OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES AND (3) IN ACCORDANCE
WITH APPLICABLE STATE SECURITIES AND BLUE SKY LAWS. 

        THE
SECURITIES REPRESENTED HEREBY ARE SUBJECT TO THE PROVISIONS OF AN AMENDED AND RESTATED STOCKHOLDERS AGREEMENT DATED AS OF JULY 17, 2000, INCLUDING THEREIN CERTAIN RESTRICTIONS ON
TRANSFER, A COMPLETE AND CORRECT COPY OF THIS AGREEMENT IS AVAILABLE FOR INSPECTION AT THE PRINCIPAL OFFICE OF THE COMPANY AND WILL BE FURNISHED UPON WRITTEN REQUEST AND WITHOUT CHARGE. 

        Section 5.3    Power and Authority; Due Authorization    

        Such
Purchaser has the full power and authority to execute and deliver this Agreement and to perform all of its obligations hereunder. This Agreement has been duly authorized by all
necessary action on the part of such Purchaser, has been validly executed by such Purchaser and constitutes a legal, valid, and binding obligation of such Purchaser, enforceable against such Purchaser
in accordance with its terms, except as such enforceability may be limited (i) by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement
of creditors' rights generally, (ii) by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (iii) to the extent
that rights to indemnification and contribution may be limited by the federal or state securities laws or public policy relating thereto. 

        Section 5.4    Accredited Investor    

        Such
Purchaser is an Accredited Investor. 

17

 
 
 

ARTICLE VI    
    
    PAYMENTS, ETC.    
    

        Section 6.1    Place of Payment    

        The
Company will pay all sums payable to Purchasers as contemplated by the terms of the Preferred Stock and the Notes by check or wire transfer of immediately available funds, which, if
by check, shall be mailed to the address specified for such purpose below the Purchasers' names in Schedule 1, or by such other method or at such
other address as the Purchasers shall have from time to time specified to the Company in writing for such purpose, without the presentation or surrender of the Preferred Stock or Notes or the making
of any notation thereon, except that upon written request of the Company made in connection with the payment or prepayment in full of the Preferred Stock or Notes, the Purchasers shall surrender such
Preferred Stock or Notes, as the case may be, for cancellation, promptly after any such request, to the Company at its principal executive office. 

        Section 6.2    Payments Due on Non-Business Days    

        Anything
in this Agreement, the Preferred Stock or the Notes to the contrary notwithstanding, any payment of principal of or interest or dividends on the Preferred Stock or the Notes
that is due on a date other than a Business Day shall be made on the next succeeding Business Day including the additional days elapsed in the computation of the interest payable on such next
succeeding Business Day. 

        Section 6.3    Optional Prepayments of Notes    

        At
any time, after the Initial Closing, the Company may, at its option, upon notice as provided below, prepay all, or from time to time, any part of, the Notes. In the event of an
optional prepayment by the Company, all Notes shall be treated alike such that prepayment in full shall mean the prepayment of all of the Notes then outstanding and a partial prepayment shall be
applied pro rata to all Notes then outstanding. The Company will give the Purchasers written notice of each optional prepayment under this Section 6.3 not less than 30 days prior to the
date fixed for such prepayment. Each such notice shall specify such date, the aggregate principal amount of the Notes to be prepaid on such date and the interest to be paid on the prepayment date with
respect to such principal amount being prepaid. Notwithstanding any election by the Company to prepay the Notes, the Holders thereof may, on or
before the close of business on the Business Day prior to the date set for prepayment in the prepayment notice, elect to convert the Notes pursuant to their terms. 

        Section 6.4    Dividends on Preferred Stock    

        The
method of declaring and paying dividends on the Preferred Stock shall be as set forth in Section 2 of the Certificate of Designations. 

 
 

ARTICLE VII    
    
    COVENANTS OF THE COMPANY    
    

        The Company covenants with the Purchasers as follows: 

        Section 7.1    Corporate Existence; Conduct of Business    

        The
Company and its Subsidiaries will continue to engage principally in the business now conducted or proposed to be conducted by the Company and its Subsidiaries. The Company will keep
in full force and effect its corporate existence and all intellectual property rights useful in its business (except such rights as the Board of Directors has reasonably determined are not material to
the Company's continuing operations). 

        Section 7.2    Payment of Obligations    

        The
Company and each Subsidiary shall duly and punctually pay the principal of and interest on the Notes and all of its other indebtedness on the dates and in the manner provided in the
Notes or by 

18

 

the
terms of such other indebtedness as such terms may be amended, modified or waived from time to time by the parties thereto, as applicable. 

        Section 7.3    Information    

        Prior
to the Subsequent Closing, the Company shall deliver to each Purchaser all information, reports and other materials currently being provided to Lucent Technologies. Following the
Subsequent Closing, the Company will maintain a comparative system of accounts in accordance with generally accepted accounting principles, keep full and complete financial records and furnish to the
Purchasers the following reports: (a) within 105 days after the end of each fiscal year, commencing with the calendar year 2000, a copy of the consolidated balance sheet of the Company
as at the end of such year, together with a consolidated statement of income and retained earnings of the Company for such year, audited and certified by independent public accountants of recognized
national standing reasonably satisfactory to the Purchasers, prepared in accordance GAAP; (b) within 45 days after the end of each of the first three fiscal quarter commencing with the
quarter ending June 30, 2000, a consolidated unaudited balance sheet of the Company as at the end of such quarter and a consolidated unaudited statement of income and retained earnings for the
Company for such quarter and for the year to date, each of the foregoing balance sheets and statements of income and retained earnings to set forth in comparative form the corresponding figures of
(or, in the case of the balance sheet, as of the end of) the prior fiscal period; (c) copies of any and all filings made by the Company with the Securities and Exchange Commission, and
(d) so long as the Notes are outstanding, such other financial information as the holders of not less than 662/3% of the original aggregate principal balance of the Notes then
held by the Purchasers reasonably request in writing. The Company immediately shall provide to each Holder of Notes or Preferred Stock written notice of any default or Event of Default under the Notes
or any other indebtedness of the Company, disregarding any applicable cure periods or any cure which may occur after the occurrence of such default. 

        Section 7.4    Use of Proceeds    

        The
Company shall use the proceeds from the sale of the Notes and Preferred Stock to partially finance the construction of the Company's PCS network and for working capital and other
general corporate purposes. 

        Section 7.5    Payment of Taxes, Compliance with Laws, etc.    

        The
Company and each of its Subsidiaries will pay and discharge all lawful taxes, assessments and governmental charges or levies imposed upon it or upon its income or property before the
same shall become in default, as well as all lawful claims for labor, materials and supplies which, if not paid when due, might become a lien or charge upon its property or any part thereof; provided,
however, that the Company and each of its Subsidiaries shall not be required to pay and discharge any such tax, assessment, charge, levy or claim so long as the validity thereof is being contested by
the Company or the relevant Subsidiary in good faith by appropriate proceedings and an adequate reserve therefor has been established on its books. The Company and each of its Subsidiaries will comply
in all material respects with all applicable laws and regulations in the conduct of its business, including, without limitation, all applicable federal and state securities laws in connection with the
issuance of any
securities, and all FCC regulations applicable to the Company or any Subsidiary, except those that are superseded by or conflict with applicable court orders or rulings. 

        Section 7.6    Insurance    

        The
Company and each of its Subsidiaries will keep its insurable properties insured, upon reasonable business terms, by insurers that to the Company's knowledge are financially sound and
reputable, against liability, and the perils of casualty, fire and extended coverage in amounts of coverage at least equal to those customarily maintained by companies in the same or similar business
as the Company and each of its Subsidiaries. The Company and each of its Subsidiaries will also maintain with such insurers insurance against other hazards and risks and liability to persons and
property, 

19

 

including,
without limitation, directors and officers insurance covering all directors, to the extent and in the manner customary for companies engaged in the same or similar business, and providing
coverage for the duration of such person's tenure as a director and for at least for three years following the date each such person ceases to serve as a director. 

        Section 7.7    Maintenance of Properties    

        The
Company and each of its Subsidiaries will maintain all properties used or useful in the conduct of its business in good repair, working order and condition, ordinary wear and tear
excepted, as reasonably necessary to permit such business to be properly and advantageously conducted. 

        Section 7.8    Stockholders Agreement    

        The
Company will diligently enforce all of its rights, and comply with its obligations, under the Stockholders Agreement. The Company will not effect any transfer of any of the
outstanding capital stock of the Company on the stock record books of the Company unless such transfer is made in accordance with the terms of the Stockholders Agreement. 

        Section 7.9    Reservation of Shares    

        The
Company will at all times reserve for issuance (i) shares of Class C Common Stock sufficient to permit full conversion of all outstanding shares of the Preferred Stock,
Series C Preferred Stock and Class B Common Stock in accordance with their respective terms, and (ii) shares of Preferred Stock sufficient to permit full conversion of all
outstanding Notes in accordance with their terms. 

        Section 7.10    Board of Directors    

        The
Company will take no action to increase the size of the board of directors or decrease the number of directors which the holders of Preferred Stock are entitled to nominate. 

        Section 7.11    Diligent Prosecution; Litigation    

        The
Company and each of its Subsidiaries will take all commercially reasonable actions necessary or advisable to diligently prosecute the Company's existing FCC Litigation, defend its
FCC licenses and otherwise protect all of its other property rights, tangible or intangible. The Company shall promptly notify each Purchaser of any appeal that may be filed by any party to the
decision to be rendered by the U.S. Court of Appeals for the 5th Circuit in respect of the Company's existing FCC Litigation. 

        Section 7.12    Inspection    

        Upon
reasonable notice to the Company, each Purchaser which holds at least 2% of the Company's capital stock on a fully diluted basis shall be permitted to inspect and review all of the
Company's properties, facilities, books and records, and, at such Purchaser's expense, to make such reasonable number of copies of such books and records as any Purchaser may reasonably request. Upon
reasonable notice to the Company and without disrupting its normal conduct of business unreasonably, the Company shall make available to each such Purchaser appropriate members of management for the
purpose of discussing the business, finances, prospects and affairs of the Company; provided, however, that no such inspection, examination or inquiry,
the failure to conduct same, nor any knowledge of any Purchaser, including without limitation, any knowledge obtained by such Purchaser in connection with any such inspection, investigation or
inquiry, shall constitute a waiver of any rights such Purchaser may have under any representations, warranty, covenant, term or agreement under this Agreement, the Notes, the Stockholders Agreement or
any other document contemplated hereby or thereby. Notwithstanding the foregoing, no more than one inspection pursuant to this Section 7.12 shall occur during any calendar quarter. 

        Section 7.13    Temporary Limitation on Issuance of Equity Securities    

        Until
and including the Commitment Determination Date, the Company shall not issue securities representing equity in the Company, or securities convertible into or giving right to
purchase securities representing equity in the Company, without the prior consent of holders of not less than 662/3% of the original aggregate principal balance of the Notes then held
by the Purchasers. 

20

  

 
 

ARTICLE VIII    
    
    TRANSFER AND EXCHANGE    
    

        Section 8.1    Limited Restrictions on Transfer    

        Subject
to the provisions of Sections 5.2, this Section 8.1, the Stockholders Agreement, and applicable law and FCC rules, each Purchaser may transfer Notes, any portion thereof
in integral multiples of $1,000, or shares of Preferred Stock without restrictions; provided, however, that Purchasers shall not transfer Notes or shares of Preferred Stock to any applicant for or
licensee of an FCC Commercial or Private Mobile Radio Service (as the terms are defined from time to time by the FCC) license within the geographical area covered by the Company's FCC Mobile Radio
Service licenses, without the written consent of the Company, if as a result of such transfer the transferee would obtain the right to nominate or elect a member of the Board of Directors. As a
condition to any transfer, the Company may require such certificates or opinions as it reasonably deems necessary to ensure compliance with the Securities Act and applicable state securities laws. 

        Section 8.2    Registration of Securities    

        The
Company shall keep at its principal executive office a register (the "Securities Register") for the registration, registration of transfers and conversion of the shares of Preferred
Stock and Notes. The name and address of each Holder of one or more Notes or shares of Preferred Stock, each transfer thereof and the name and address of each transferee of one or more Notes or shares
of Preferred Stock shall be registered in such Securities Register. Prior to due presentment for registration of transfer the Person in whose name any Notes or shares of Preferred Stock shall be
registered shall be deemed and treated as the owner and Holder thereof for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the contrary. The Company shall give
to any Holder of Preferred Stock or Notes promptly upon request therefor, a complete and correct copy of the names and addresses of all registered Holders of Notes and shares of Preferred Stock. 

        Section 8.3    Transfer and Exchange    

        Upon
surrender of any Notes or certificates representing shares of Preferred Stock at the principal executive office of the Company for registration of transfer or exchange (and in the
case of a surrender for registration of transfer, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered Holder of such Note or stock certificate or his
attorney duly authorized in writing and accompanied by the address for notices of each transferee of such Note or stock certificate or part thereof), the Company shall execute and deliver, at the
Company's expense, one or more new Notes or stock certificates, as applicable (as requested by the Holder thereof) in exchange therefor, in an aggregate principal amount equal to the unpaid principal
amount of the surrendered Note, or for the aggregate number of shares of Preferred Stock represented by the surrendered stock certificate. Each such new Note shall be payable to such Person, and each
such new stock certificate shall be issued in the name of such Person, as such Holder may request and shall be substantially in the form specified herein. 

        As
a condition to any transfer, the Company may require such certificates or opinions as it reasonably deems necessary to ensure compliance with the Securities Act and applicable state
securities laws. 

        Section 8.4    Replacement of Notes and Preferred Stock Certificates    

        Upon
receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of any Note or certificate representing shares of
Preferred Stock, and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the Holder of such Note or Preferred Stock certificate is, or is
a nominee for, the original Purchaser, such Person's own unsecured agreement of indemnity shall be deemed to be satisfactory), or (b) in the 

21

 

case
of mutilation, upon surrender and cancellation thereof, the Company at its own expense shall execute and deliver, in lieu thereof, a new Note or Preferred Stock certificate, as applicable. 

 
 

ARTICLE IX    
    
    MISCELLANEOUS    
    

        Section 9.1    Indemnification.    

        (a)   The
Company agrees to defend, indemnify, save and hold each Purchaser and its affiliates and its partners, members, stockholders, directors, officers, employees and
(parties receiving the benefit of the indemnification agreement herein shall be referred to collectively as "Indemnified Parties" and individually as an "Indemnified Party") harmless from and against
any and all costs, losses, liabilities, damages, lawsuits, deficiencies, claims, taxes and expenses (whether or not arising out of third-party claims), including, as incurred, without limitation,
interest, penalties, reasonable attorneys' fees and all amounts paid in investigation, defense or settlement of any of the foregoing which may be sustained or suffered by any such Indemnified Party (a
"Loss" or "Losses"), based upon, arising, out of, resulting from, by reason of or otherwise in respect of or in connection with any inaccuracy in or breach of any representation or warranty made by
the Company in any Transaction Document, or any breach of any covenant or agreement made by or on behalf of the Company in any Transaction Document; provided, however, that no Indemnified Party or
Parties shall be entitled to indemnification by the Company hereunder with respect to any costs, losses, liabilities, damages, lawsuits, deficiencies, claims, taxes and expenses arising primarily
(i) out of or based primarily upon the wilful misconduct, gross negligence or malfeasance (as finally determined by a court of competent jurisdiction) of the Indemnified Party or Parties, or
(ii) out of or based upon any untrue statement of a material fact or an omission or alleged omission to state a material fact relating to information provided by or on behalf of the Purchasers
or an Indemnified Party or Parties. 

        (b)   If
the indemnification provided for in Section 9. l(a) above for any reason is held by a court of competent jurisdiction to be unavailable to an Indemnified Party
in respect of any losses, claims, damages, expenses or liabilities referred to therein, then the Company, in lieu of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid
or payable by such Indemnified Party as a result of such losses, claims, damages, expenses or liabilities, in such proportion as is appropriate to reflect the relative fault of the Company and the
Indemnified Party in connection with the inaccuracy or breach which resulted in such losses, claims, damages, expenses or liabilities, as well as any other relevant equitable considerations. 

        (c)   The
indemnification and contribution provided for in this Section 9.1 will remain in full force and effect regardless of any investigation made by or on behalf of
any Indemnified Party or any officer, director, partner, employee or agent of any Indemnified Party. The provisions of this Section 9.1 are in addition to and shall supplement those set forth
in the Stockholders Agreement which shall apply in the case of the registration and sale of Registrable Securities (as defined in the Stockholders Agreement) held by any of the Indemnified Parties
registered pursuant to the Stockholders Agreement. 

        Section 9.2    Notice; Defense of Claims.    

        (a)   Promptly;
and in any event no later than ten (10) days, after receipt by an Indemnified Party of notice of any third party or other claim, liability or expense to
which the indemnification obligations under Section 9.1 would apply, including in connection with any governmental proceeding, the Indemnified Party shall give notice thereof in writing to the
Company, but the omission to so notify the Company promptly will not relieve the Company from any liability except to the extent that the Company shall have been actually prejudiced as a result of the
failure or delay in giving such notice. Such notice shall state the information then available regarding the amount and nature of such claim, liability or expense and shall specify the provision or
provisions of this Agreement under which the liability or obligation is asserted. 

22

   
        (b)   In the case of any third party claim, if within twenty (20) days after receiving the notice described in the preceding paragraph, the Company gives written notice
to the Indemnified Party or Parties stating that it intends to defend in good faith against such claim, liability or expense at its own cost and expense, then counsel for the defense shall be selected
by the Company (subject to the consent of such Indemnified Party or Parties which consent shall not be unreasonably withheld) and such Indemnified Party or Parties shall not be required to make any
payment with respect to such claim, liability or expense as long as the Company is conducting a good faith and diligent defense at its own expense;  provided, however, that the assumption of defense of any such matters by the Company shall relate solely
to the claim, liability or expense that is subject or potentially subject to indemnification. The Company shall not settle or agree to settle any such claim, liability or expense or any resulting
suit, proceeding or enforcement action without the prior written consent of each Indemnified Party. The Company shall keep such Indemnified Party or Parties reasonably apprised of the status of the
claim, liability or expense and any resulting suit, proceeding or enforcement action, shall furnish such Indemnified Party or Parties with all documents and information that such Indemnified Party or
Parties shall reasonably request and shall consult with such Indemnified Party or Parties prior to acting on major matters, including settlement discussions. Notwithstanding anything herein stated,
such Indemnified Party or Parties shall at all times have the right to fully participate in such defense at its own expense directly or through counsel;  provided, however, if the named parties to the action or proceeding include both the Company and the
Indemnified Party or Parties and representation of both parties by the same counsel would be inappropriate under applicable standards of professional conduct, the expense of separate counsel for such
Indemnified Party or Parties shall be paid by the Company provided, further, that the counsel for the
Indemnified Party or Parties must be reasonably acceptable to the Company and the Indemnified Party or Parties as to quality and cost, it being understood, however, that the Company shall not, in
connection with any one such action or proceeding or separate but substantially similar or related actions or proceedings arising out of the same general allegations or circumstances, be liable for
the reasonable fees and expenses of more than one separate firm of attorneys at any time for such Indemnified Party or Parties. If no such notice of intent to dispute and defend is given by the
Company, or if such diligent good faith defense is not being or ceases to be conducted, such Indemnified Party or Parties shall, at the expense of the Company, undertake the defense of (with counsel
selected by such Indemnified Party or Parties), and shall have the right to compromise or settle, such claim, liability or expense with the consent of the Company, which will not be unreasonably
withheld; provided, however, if such consent is requested and the Company does not respond within ten
(10) business days, the Company shall be deemed to have consented. If such claim, liability or expense is one that by its nature cannot be defended solely by the Company, then the Indemnified
Party or Parties shall make available all information and assistance that Company may reasonably request and shall cooperate with the Company in such defense. 

        Section 9.3    Survival of Representations and Warranties    

        All
representations and warranties contained herein shall survive the execution and delivery of this Agreement and the Notes and Preferred Stock, the purchase or transfer of any
Preferred Stock and Note or portion thereof or interest therein and the payment of any amounts under the Notes or
Preferred Stock, and may be relied upon by any subsequent Holder of Preferred Stock or Notes, regardless of any investigation made at any time by or on behalf of the Purchasers or any other Holder of
Preferred Stock or Notes. All representations and warranties contained herein shall expire on the second anniversary of the Subsequent Closing. All statements contained in any certificate or other
instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed representations and warranties of the Company under this Agreement. 

        Section 9.4    Amendment and Waiver    

        Provisions
of this Agreement relating to the Notes, and of the Notes, may be amended, and the observance of any term hereof or of the Notes may be waived (either retroactively or
prospectively), 

23

 

with
(and only with) the written consent of the Company and the Required Holders of the Notes; and provisions of this Agreement relating to the Preferred Stock, and of the Certificate of Designations,
may be amended, and the observance of any term hereof or of the Certificate of Designations may be waived (either retroactively or prospectively), with (and only with) the written consent of the
Company and the Required Holders of the Preferred Stock, except that no such amendment or waiver may, without the written consent of the holders of 662/3% of the shares of Preferred
Stock and/or Note at the time outstanding affected thereby, (a) with respect to the Notes only, and subject to the provisions thereof relating to acceleration or rescission, change the amount
or time of any prepayment or payment of principal to, reduce the rate or change the time of payment or method of computation of interest on, or extend the maturity date of, the Notes or
(b) change the definition of Required Holders. Any amendment or waiver consented to as provided in this Section 9.4 applies equally to all Holders of Notes or Preferred Stock and is
binding upon them and upon each future Holder of any Notes or Preferred Stock and upon the Company without regard to whether such Notes or Preferred Stock have been marked to indicate such amendment
or waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement, Default or Event of Default not expressly amended or waived or impair any right consequent thereon.
No course of dealing between the Company and the Holder of any Notes or Preferred Stock nor any delay in exercising any rights hereunder or under any Notes or Preferred Stock shall operate as a waiver
of any rights of any Holder of such Notes or Preferred Stock. 

        Section 9.5    Notices    

        All
notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a
recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery
service (with charges prepaid). Any such notice must be sent as follows: 

        If
to the Purchasers: 

To
the respective addresses set forth in Schedule 1. 

        With
a copy to: 

Mayer,
Brown & Platt

1675 Broadway

New York, New York 10019

Attention: Kathleen A. Walsh

Telephone: (212) 506-2553

Telecopy: (212) 262-1910 

        If
to the Company, to: 

Metro
PCS, Inc.

8144 Walnut Hill Lane

Dallas, Texas 75231

Attention: Dennis G. Spickler

Vice President and Chief Financial Officer

Telephone: (214) 265-2550

Telecopy: (214) 265-2570 

24

 

        With
a copy to: 

Andrews &
Kurth L.L.P.

1717 Main Street, Suite 3700

Dallas, Texas 75201

Attention: Deborah Schrier-Rape

Telephone: (214) 659-4400

Telecopy: (214) 659-4401 

        Notices
under this Section 9.5 will be deemed given only when actually received. Each party may, by notice given hereunder, designate a different address to which subsequent
notices and communications shall be sent. 

        Section 9.6    Successors and Assigns    

        All
covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns
(including, without limitation, any subsequent Holder of Notes or Preferred Stock) whether so expressed or not. The Company may not assign its rights or obligations under this Agreement or the Notes
without the express written consent of the Required Holders. 

        Section 9.7    Severability    

        Any
provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction. 

        Section 9.8    Counterparts    

        This
Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist
of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. 

        Section 9.9    Jury Waiver    

        THE
COMPANY AND THE PURCHASERS HEREBY IRREVOCABLY WAIVE ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. 

        Section 9.10    Governing Law    

        THIS
AGREEMENT SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH, AND ENFORCED UNDER, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED
ENTIRELY WITHIN SUCH STATE. 

        Section 9.11    Final Agreement of the Parties    

        THIS
AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE
ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 

25

 

        Section 9.12    Further Assurances    

        Each
of the parties covenants and agrees to take all such actions and to execute all such documents as may be necessary or advisable to implement the provisions of this Agreement fully
and effectively and to make them binding on the parties hereto. 

        Section 9.13    Publicity    

        All
public notices to third parties and all publicity concerning the transactions contemplated by this Agreement shall be jointly planned and coordinated by the Company and the
Purchasers, and no party shall act unilaterally in this regard without the prior approval of the other parties, such approval not to be unreasonably withheld, except where required by applicable law
or regulation. 

        Section 9.14    Headings.    

        The
article and section headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. 

26

        IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the date first set forth above. 

	 	 	MetroPCS, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	MetroPCS Wireless, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	MetroPCS, California/Florida, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	MetroPCS Chico, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	MetroPCS, Georgia, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS1, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

	 	 	GWI PCS2, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS3, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS4, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS5, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS6, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS7, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

	 	 	GWI PCS8, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS9, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS10, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS11, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS12, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS13, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

	 	 	GWI PCS14, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	Reauction, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	PURCHASERS:
	 	 	 	 	 
	 	 	[Signature Pages Follow]

 
 

Annex A    
    
    CERTAIN DEFINITIONS    
    

        [Annex begins on following page] 

 
 

Schedule 1    
    
    SCHEDULE OF PURCHASERS    
    

        [Schedule begins on following page] 

 
 

Schedule 2    
    
    SCHEDULE OF SUBSIDIARIES    
    

[Schedule
begins on following page] 

 
 

Exhibit A    
    
    FORM OF CERTIFICATE OF DESIGNATIONS,
  PREFERENCES AND RIGHTS RELATING TO THE SERIES D
  CONVERTIBLE PREFERRED STOCK    
    
    [Exhibit begins on
following page]    

 
 

Exhibit B    
    
    FORM OF 6% SUBORDINATED CONVERTIBLE NOTES DUE 2002    
    

        [Exhibit begins on following page] 

 
 

Exhibit C    
    
    FORM OF COMMITMENT LETTER    
    

        [Exhibit begins on following page] 

 
 

Exhibit D    
    
    AMENDED AND RESTATED STOCKHOLDERS AGREEMENT    
    

        [Exhibit begins on following page] 

 
 

AMENDMENT NO. 1 TO
  SECURITIES PURCHASE AGREEMENT    
    
    dated as of November 13, 2000    
    

        Reference
is hereby made to the SECURITIES PURCHASE AGREEMENT, dated as of July 17, 2000 (the "Agreement"), by and among MetroPCS, Inc., a Delaware corporation (the
"Company"), the subsidiaries of the Company listed on Schedule 2 thereto (collectively, the "Subsidiaries") and each of the PURCHASERS listed on Schedule 1 thereto (collectively,
together with their successors and assigns, the "Purchasers"). 

        This
AMENDMENT NO.l TO SECURITIES PURCHASE AGREEMENT dated as of November 13, 2000 (this "Amendment No. 1") between the Company, the Subsidiaries and each of the Purchasers
is entered into pursuant to Section 9.4 of the Agreement for the purpose of modifying and adding certain provisions of and to the Agreement. Initially capitalized terms used herein not
otherwise defined shall have the meanings set forth in the Agreement, including Annex A thereto. 

 
 

W I T N E S S E T H:    
    

        WHEREAS, pursuant and subject to the Agreement, the Company has agreed to sell and the Purchasers have the right to purchase shares of the Company's Preferred
Stock with an aggregate liquidation preference of up to $250,000,000; and 

        WHEREAS,
the Company and the Purchasers desire to modify the Agreement, among other ways, as follows: (1) increase the issuance of the Preferred Stock to an aggregate liquidation
preference of up to $300,000,000; (2) add new investors as additional Purchasers of the Preferred Stock, but not of the Notes, and (3) provide for the purchase of the first
$150 million of the Preferred Stock in three stages involving (i) $25 million upon the Subsequent Closing, (ii) up to $25 million upon the Second Preferred Closing
(as determined by the Board of Directors), and (iii) up to $100 million (plus certain other amounts as set forth below) upon the Third Preferred Closing (as determined by the Board of
Directors). 

        NOW,
THEREFORE, in consideration of the mutual agreements contained in this Amendment No. 1, the parties hereto agree as follows: 

 
 

ARTICLE I
  AMENDMENTS TO AGREEMENT    
    

        Section A.    Purchasers and Schedule 1.    Schedule 1 to the Agreement hereby is amended to add
Metro PCS Investors LLC, an Affiliate of Pacific Capital Group and/or certain of its Affiliates (collectively, "Pacific"), Clarity Partners, L.P. and/or certain of its Affiliates ("Clarity"), as
additional Purchasers of the Preferred Stock (collectively with Pacific, the "New Purchasers"), and to remove Whitney & Co. as a purchaser of Preferred Stock (and not the Notes) and
Schedule 1 to the Agreement is hereby deleted and replaced in its entirety with the Amended and Restated Schedule of Purchasers attached hereto as Schedule 1 to this Amendment
No. 1. 

        Section B.    Authorization of Preferred Stock.    Section 1.1 of the Agreement hereby is deleted and
replaced in its entirety with the following: 

        "The
Company has authorized the issuance and sale of its Preferred Stock with an aggregate liquidation preference of up to $300 million, which may be issued and sold pursuant to
this Agreement. With respect to the Subsequent Closing and subject to the provisions of Section 2.2 of the Agreement, Preferred Stock with an aggregate liquidation preference of at least
$150 million may be issued and sold pursuant to this Agreement. The form of the Certificate of Designations, Preferences and Rights relating to the Preferred Stock (the "Certificate of
Designations") is set forth in Exhibit A. The form of the Certificate of Designations to increase the number of shares of Preferred Stock attached as Exhibit A-1 to Amendment
No. 1 and the Sixth Amended and Restated Certificate of Incorporation attached as Exhibit A-2 to Amendment No. 1, each to be 

filed
no later than the date of the Subsequent Closing, shall (together with the original Exhibit A) supersede, and become, Exhibit A to this Agreement in all respects." 

        Section C.    Subsequent Closing.    Section 2.2 of the Agreement hereby is deleted and replaced in its
entirety with the following 

        "(a) The
initial sale of the Preferred Stock shall occur in three stages on three purchase dates, the first being the "Subsequent Closing", the second being the "Second
Preferred Closing" and the third being the "Third Preferred Closing", each of which respective dates shall be determined as set forth below and shall be subject to the conditions set forth herein;
provided, that additional sales of any remaining Commitments in excess of $150 million may occur after the Third Preferred Closing as set forth below. Each sale of the Preferred Stock shall
take place at the location as agreed to by the Purchasers and the Company, or in the absence of such agreement, then at the offices of counsel for the single largest Purchaser of Preferred Stock. In
connection with the funding of the first $150 million of the Commitment Amount (as defined below) to complete the purchase of Preferred Stock, the Purchasers shall be obligated to remit to the
Company funds for their purchase of Preferred Stock on the following funding dates: (i) $25 million of the Commitment Amount shall be remitted no later than on the third
(3rd) Business Day after the Subsequent Closing; (ii) up to $25 million of the Commitment Amount shall be remitted no later than on the tenth (10th) Business Day after the
Second Preferred Closing, which amount and purchase date shall be determined by the Board of Directors; provided, however, that the date of such remittance for the Second Preferred Closing shall occur
no earlier than January 2, 2001; and (iii) up to $100 million of the Commitment Amount (plus, any amount of the $25 million that has not been funded in connection with the
Second Preferred Closing) shall be remitted no later than on the tenth (10th) Business Day after the Third Preferred Closing, which amount and purchase date shall be determined by the
Board of Directors; provided, however, that the date of such remittance for the Third Preferred Closing shall occur no earlier than January 2, 2001. In connection with the Third Preferred
Closing, each Purchaser's obligation to purchase and pay for the Preferred Stock to be sold to such Purchaser at the Third Preferred Closing is subject to the satisfaction or waiver, prior to or at
the Commitment Revocation Date, of the conditions set forth in Sections 3A.1, 3A.2, 3A.3, 3A.10 and 3A.12; provided that each such Section is applied by substituting the "Commitment Revocation Date"
for any references to the "Subsequent Closing". 

        After
the Third Preferred Closing, any remaining Commitment Amount in excess of $150 million shall be remitted to the Company by the Purchasers no later than ten
(10) Business Days after receipt of a
demand for funding from the Company to purchase Preferred Stock up to the remaining Commitment Amount. After the Third Preferred Closing, any demand from the Company to the Purchasers to fund up to
the remaining Commitment Amount shall be authorized by the Board of Directors and approved by the Company in the same manner as provided in section 3.1 of the Stockholders Agreement regarding
"Supermajority Voting Rights." In each of the preceding cases, funding shall be made pro-rata, based on the Commitment Amount for each Purchaser (inclusive of the original principal amount
of the Notes), subject to subsections (f) and (k)(iii) below. Each purchase of Preferred Stock shall be at a price of $100 per share. All remittances of funds for the Commitment Amounts
by the Purchasers shall be made by wire transfer in immediately available funds to the account specified by the Company. Subject to the provisions of this Section 2.2, each Purchaser's
Commitment shall remain in full force and effect for three years from the date of the Subsequent Closing and, to the extent not drawn, shall then terminate. 

        (b)   The
Purchasers (which, subject to Section 2.2(i), shall include any Affiliate assignee thereof) may deliver to the Company commitment letters to purchase
Preferred Stock up to an aggregate liquidation preference not to exceed the amounts set forth opposite such Purchaser's name on Schedule 1 hereto, stating the amount of liquidation preference
thereof (the "Commitment Amount") in the form of Exhibit C hereto (the "Commitments"), beginning on the date of the written order of the U.S. Court of Appeals for the Fifth Circuit relating to
the FCC Litigation (the "FCC Decision Date"). If any Purchaser does not deliver its Commitment to the 

Company
by the close of business on the Commitment Determination Date (as defined below) then such Purchaser's right to purchase Preferred Stock hereunder shall be rescinded and terminated and any
rights, benefits, warranties, duties and covenants hereunder relating to the Preferred Stock of such Purchaser shall be terminated, nullified and of no further force and effect, except with respect
to, and only to the extent of, the Preferred Stock acquired by such Purchaser through the conversion of its Notes (if any) into Preferred Stock. 

        (c)   Each
Purchaser and the Company shall make any necessary filings for approvals under the Hart/Scott/Rodino Antitrust Improvement Act (the "HSR Act") not later than the
fifth Business Day following the Initial Closing and each Purchaser shall simultaneously provide the Company with notice and a copy of such filing; provided that the New Purchasers and the Company
shall make any necessary filings for approvals under the HSR Act not later than five (5) Business Days after the Commitment Determination Date. Each Purchaser shall immediately notify the
Company upon receipt of the applicable approvals under the HSR Act. In the event that the New Purchasers have not obtained the applicable approval under the HSR Act on the date of the Subsequent
Closing or the Second Preferred Closing, then the New Purchasers shall fund the appropriate portion of its Commitment Amount into an escrow account and the Company shall deliver their respective
shares of Preferred Stock to the escrow agent, in each case subject to an escrow agreement to be mutually agreed on by Pacific and the Company, and such funds shall be released to the Company and such
shares shall be released to the New Purchasers upon the receipt of notice of such approval. For the purposes of calculating dividends and distributions with respect to any shares of Preferred Stock
placed in an escrow account pursuant to this Section 2.2(c), such shares of Preferred Stock will be deemed to have been purchased by the New Purchasers on the same date as the other Purchasers. 

        (d)   If
as of the close of business on the (15th) fifteenth Business Day following the FCC Decision Date (such fifteenth Business Day, the "Commitment Determination Date")
the aggregate Commitment Amount is at least $295 million, the Subsequent Closing shall occur on a date determined by the Company as soon as practicable after all necessary approvals under the
HSR Act (other than with respect to the purchase of Preferred Stock by the New Purchasers) are received by the Company and each Purchaser. No later than 10:00 a.m. New York time on the Business
Day following the Commitment Determination Date, the Company shall notify each Purchaser of the aggregate Commitment Amount as of the close of business on the Commitment Determination Date. 

        (e)   If
as of the close of business on the Commitment Determination Date the aggregate Commitment Amount is less than $295 million, the following shall occur: 

        (i)    Each
Purchaser shall have the right to terminate its Commitment and rescind its purchase of Preferred Stock by notice delivered to the Company no later than
5:00 p.m. New York time on the Business Day following the Commitment Determination Date (provided that the Company has delivered its notice pursuant to paragraph (d) above), and such
Purchaser's Commitment shall terminate. 

        (ii)   Each
Purchaser's Commitment (including, subject to Section 2.2(i), any Affiliate assignee thereof), which has not been terminated pursuant to
paragraph (e)(i) above, shall become irrevocable, subject to revocation, cancellation and/or termination pursuant to subsections 2.2(h), 2.2(j) and/or 2.2(k)(v) below. During the
seven (7) Business Days following the Commitment Determination Date, each such Purchaser shall have an exclusive right of first refusal to commit to purchase additional shares of Preferred
Stock that were not subject to Commitments by delivering the corresponding additional Commitments to the Company. Such right of first refusal shall be exercisable pro-rata, based on the
Purchaser's respective share of the total Commitment Amount (inclusive of the original principal amount of the Notes) as of the close of business on the Business Day following the Commitment
Determination Date. 

        (f)    If
as of the close of business on the seventh (7th) Business Day after the Commitment Determination Date the aggregate Commitment Amount is still less than
$295 million, the Company shall have the right, during the eighth (8th) through the twentieth (20th) Business Days following the Commitment Determination Date, to
accept Commitments from additional purchasers of Preferred Stock, subject to the same terms and conditions as the Purchasers, in order to reach the $295 million aggregate amount. If any
additional purchasers deliver a Commitment to purchase Preferred Stock pursuant to this subsection (f), then such additional purchaser shall fund its purchase of Preferred Stock in respect of a
purchase date in a manner that results, after such funding, in such additional purchaser having funded the same percentage of its Commitment Amount as the other Purchasers have funded of their
Commitment Amounts (inclusive of the original principal amount of the Notes). 

        (g)   Notwithstanding
paragraph (f) above, if as of 12:00 p.m., New York time, on the fourth (4th) Business Day after the Commitment Determination
Date or any Business Day thereafter subject to subsection 2.2(h) the aggregate Commitment Amount is at least $150 million, the Subsequent Closing involving the purchase of $25 million of
Preferred Stock shall occur on the fourth (4th) Business Day following the Commitment Determination Date or a later date determined by the Company, provided that all necessary approvals
under the HSR Act (other than with respect to the purchase of Preferred Stock by the New Purchasers) have been received by the Company and the applicable Purchasers. After the Subsequent Closing, the
Second Preferred Closing involving the purchase of the next $25 million of Preferred Stock shall occur on a date as determined by the Board of Directors; provided that the Purchasers receive at
least three (3) Business Days prior notice of such date; provided, however, that the date of such remittance for the Second Preferred Closing shall occur no earlier than January 2, 2001,
and that all necessary approvals under the HSR Act (other than with respect to the purchase of Preferred Stock by the New Purchasers) have been received by the Company and the applicable Purchasers. 

        (h)   If
as of the close of business on the twentieth (20th) Business Day after the Commitment Determination Date the aggregate Commitment Amount is less than
$150 million, the purchase of the Preferred Stock shall be cancelled in its entirety, and the Commitments shall terminate. 

        (i)    Any
Purchaser may purchase Preferred Stock hereunder in conjunction with only the following: (i) any of its Affiliates, (ii) any of its partners, limited
partners or members of such Purchaser that are transferees of Preferred Stock pursuant to distributions in accordance with the partnership agreement or operating agreement of such Purchaser or its
Affiliates and (iii) in the case of Pacific, GC Dev. Co., Inc. (and, if it purchases Preferred Stock, shall also constitute a "New Purchaser"); provided, in the case of (i) and
(ii) above, that such Purchaser retains the voting rights relating to such Preferred Stock, other than with respect to any transfers by Pacific to its Affiliate, Pacific Capital Partners I,
L.P. (also known as Pacific Colony V, L.P.), or to GC Dev. Co., Inc., pursuant to which the voting rights will also be transferred. 

        (j)    An
"Optional Revocation Date" shall occur upon the earlier of (A) the date on which the U.S. Supreme Court in connection with the NextWave litigation either
grants or denies both the petition for writ of certiorari in case number 00-447 and the petition for rehearing of writ of certiorari in case number 99-1980, or
(B) January 18, 2001. Notwithstanding any provision
to the contrary herein (other than the funding of the Commitments in connection with the Subsequent Closing and the Second Preferred Closing), upon the delivery of notice to each Purchaser that an
Optional Revocation Date has occurred, each Purchaser shall have ten (10) Business Days to notify the Company that such Purchaser is revoking all of its remaining unfunded Commitment and upon
the Company's receipt of such notice such Purchaser's remaining unfunded Commitment shall be revoked and terminated. 

        (k)   If
as of the close of business on the tenth (10th) Business Day after the Optional Revocation Date (the "Commitment Revocation Date") one or more
Purchasers have revoked 

their
Commitments (the collective Commitment Amount so revoked being the "Commitment Deficiency"), then the following shall occur: 

        (i)    No
later than 10:00 a.m. New York time on the Business Day following the Commitment Revocation Date, the Company shall notify each Purchaser of the aggregate
Commitment Amount as of the close of business on the Commitment Revocation Date and any Commitment Deficiency. Except with respect to the Purchaser's portion of its Commitment Amount attributable to
the first $50 million of the aggregate Commitment Amount, each Purchaser shall have the right to terminate its Commitment and rescind its future purchase of Preferred Stock by notice delivered
to the Company no later than 5:00 p.m. New York time on the Business Day following the Commitment Revocation Date (provided that the Company has delivered its notice pursuant to this
paragraph (k)(i)), and such Purchaser's Commitment shall terminate. 

        (ii)   Each
Purchaser's Commitment (including, subject to Section 2.2(i), any Affiliate assignee thereof), which has not been terminated or revoked pursuant to
paragraph (j) or (k)(i) above, shall become irrevocable and noncancellable as of the close of business on the Business Day after the Commitment Revocation Date, provided that the
Purchaser's Commitment shall be subject to cancellation and termination pursuant to paragraph (k)(v) below. During the seven (7) Business Days following the Commitment Revocation
Date, each such Purchaser shall have an exclusive right of first refusal to commit to purchase additional shares of Preferred Stock that are attributable to the Commitment Deficiency by delivering the
corresponding additional Commitments to the Company. Such right of first refusal shall be exercisable pro-rata, based on the total Commitment Amount for each Purchaser (inclusive of the
original principal amount of the Notes) as of the close of business on the Business Day following the Commitment Revocation Date. 

        (iii)  If
as of the close of business on the seventh (7th) Business Day after the Commitment Revocation Date there still exists any Commitment Deficiency, then the Company
shall have the right, during the eighth (8th) through the (20th) twentieth Business Days following the Commitment Revocation Date, to accept Commitments from additional purchasers of Preferred Stock,
subject to the same terms and conditions as the Purchasers, in order to eliminate any remaining Commitment Deficiency. After the Second Preferred Closing, if any additional purchaser delivers a
Commitment to purchase Preferred Stock pursuant to this subsection (k), then such additional purchaser shall fund its purchase of
Preferred Stock in respect of a purchase date in a manner that results, after such funding, in such additional purchaser having funded the same percentage of its share of the Commitment Amount as the
other Purchasers have funded of their share of the Commitment Amounts (inclusive of the original principal amount of the Notes). 

        (iv)  Notwithstanding
paragraph (iii) above, if as of 12:00 p.m., New York time, on the seventh (7th) Business Day after the Commitment Revocation Date the
aggregate Commitment Amount is at least $I50 million, the Third Preferred Closing involving the purchase of up to $100 million (plus, any amount of the $25 million that has not
been funded in connection with the Second Preferred Closing) of Preferred Stock shall occur on the seventh (7th) Business Day following the Commitment Revocation Date or a later date determined by the
Board of Directors; provided, however, that the date on which funds are remitted for such Third Preferred Closing shall occur on the later of ten (10) Business Days after the Third Preferred
Closing or January 2, 2001. 

        (v)   If
as of the close of business on the twentieth (20th) Business Day after the Commitment Revocation Date the aggregate Commitment Amount is less than
$150 million, any remaining unfunded Commitments to purchase Preferred Stock shall be rescinded and cancelled, and all Commitments shall be deemed to have terminated as of the Commitment
Revocation Date. 

        (l)    Notwithstanding
any provisions set forth in this Article II to the contrary, in the event that the Company's PCS licenses are revoked by the FCC, then any
remaining unfunded Commitments to purchase Preferred Stock shall be rescinded and cancelled, and all Commitments shall be deemed to have terminated as of the date of such revocation." 

        Section D.    Conditions to Subsequent Closing    

        (1)    Shareholders Agreement.    Section 3A.5 of the Agreement hereby is deleted and replaced in its entirety
with the following: 

        "Section 3.A.5    Stockholders Agreement.    The Stockholders Agreement shall have been duly executed by all
parties thereto and shall be in full force and effect." 

        (2)    Fees and Expenses.    Section 3A.8 of the Agreement hereby is deleted and replaced in its entirety with
the following: 

        "Section 3A.8  Fees and Expenses. All fees and expenses incurred by the Company or any Purchaser in connection with the negotiation,
preparation and execution of this Agreement and the consummation of the transactions contemplated thereby, including without limitation, the reasonable fees and expenses of Mayer, Brown &
Platt; Piper Marbury Rudnick & Wolfe LLP; Simpson Thacher & Bartlett; and Swidler Berlin Shereff Friedman, LLP as counsel to the Purchasers, shall be deducted from the proceeds remitted
to the Company for the Subsequent Closing, the Second Preferred Closing and the Third Preferred Closing; provided, however, that the total fees and expenses of counsel to the Purchasers shall not
exceed $100,000 with respect to the Initial Closing and an amount to be agreed upon by the Company with respect to the Subsequent Closing, the Second Preferred Closing and the Third Preferred Closing.
The fees for the applicable Purchasers' HSR Act filings shall be paid by the Company at the time of such filings." 

        Section E.    Representations and Warranties of the Company.    

        (1)   Section 4.8
of the Agreement is hereby amended by (A) deleting the phrase "March 31, 2000" appearing in clause (a) therein and inserting in
lieu thereof the phrase "June 30, 2000", and (B) inserting at the end thereof the following sentence: "All short-term liabilities of the Company as of October 31,
2000, in accordance with GAAP consistently applied, were not more than $16 million." 

        (2)   Article IV
of the Agreement is hereby amended by inserting at the end thereof, the following new Section 4.22: 

        "As
of November 13, 2000, each Purchaser acknowledges that the Lucent Agreements have expired. The Company has no knowledge of any fact or circumstance that would reasonably be
expected to materially adversely affect the renegotiation of the Lucent Agreements." 

        Section F.    Covenants of the Company.    

        (1)    Monthly Financials.    Section 7.3 of the Agreement hereby is amended by inserting at the end of the
second sentence the following clause: 

        ",
and (e) within 30 days after the end of each calendar month commencing with the month of December 2000, a consolidated unaudited balance sheet of the Company as
of the end of such month and an unaudited statement of income and retained earnings for the Company for such month and for the year to date." 

        (2)    Use of Proceeds.    Section 7.4 of the Agreement hereby is amended by inserting at the end thereof the
following clause: "which relate to the Company's PCS business, including without limitation the protection and preservation of the Company's FCC Licenses." 

        Section G.    Board of Directors.    Section 7.10 of the Agreement hereby is deleted and replaced in its
entirety with the following: 

        "In
connection with the Subsequent Closing and pursuant to this Stockholders Agreement, the Board of Directors of the Company shall consist of either seven (7) or eight
(8) directors, in either case as determined pursuant to the Stockholders Agreement or the Bylaws of the Company. Thereafter, the Company will take no action to increase the size of the board of
directors or decrease the number of directors which the holders of Preferred Stock are entitled to nominate." 

        Section H.    Survival of Representations and Warranties.    Section 9.3 of the Agreement hereby is
amended by deleting the second sentence and inserting in lieu thereof the following sentence: 

        "The
representations and warranties of the parties contained in this Agreement or in any instrument delivered pursuant hereto will survive the date of the Subsequent Closing and will
remain in full force and effect thereafter until the second anniversary of such Subsequent Closing; provided that the representations and warranties set forth in Sections 4.2, 4.3, 4.7, 4.12, 4.17,
4.19, the first sentence of Section 4.1 and the second sentence of 5.3 will survive the Subsequent Closing and will remain in full force and effect until the expiration of the applicable
statute of limitations (after giving effect to waiver, mitigation or extension thereof); provided, further, that such representations or warranties shall survive (if at all) beyond such period with
respect to any inaccuracy therein or breach thereof, if written notice of which shall have been duly given within such applicable period in accordance with Section 9.2 hereof." 

        Section I.    Stockholders Agreement.    A form of the Amendment No. 1 to Amended and Restated
Stockholders Agreement dated as of November 13, 2000 is attached hereto as Exhibit D-l to this Amendment No. 1. The definition of "Class C Shareholders" as set
forth in Annex A to the Agreement is hereby deleted and replaced in its entirety with the following: "Class C Stockholders" means the holders of the "Class C Common Stock." The
definition of "Series D Preferred Stock" is hereby amended by deleting the par value "$0.01" contained therein and inserting in lieu thereof the par value "$0.0001." The following definitions
as set forth in Annex A to the Agreement hereby are deleted and replaced in their entirety, respectively, with the following: 

        "Amendment
No. 1" means Amendment No. 1 to the Securities Purchase Agreement, dated as of November 13, 2000. 

        "Securities
Purchase Agreement" means the Securities Purchase Agreement dated as of July 17, 2000, among the Company, the Company's Subsidiaries listed therein and the Purchasers
listed therein, as amended by Amendment No. 1. 

        "Stockholders
Agreement" means the Company's Amended and Restated Stockholders Agreement, dated July 17, 2000, as amended by the Amendment No. 1 to Amended and Restated
Stockholders Agreement dated as of November 13, 2000." 

 
 

ARTICLE II    
    
    MISCELLANEOUS    
    

        Section A.    Ratification & Conflicts.    The Agreement as amended by this Amendment No. 1 is
ratified and confirmed, and shall remain in full force and effect. In the event of any conflict between the terms of the Agreement and this Amendment No. 1, the terms and provisions of this
Amendment No. 1 shall govern and control. 

        Section B.    Governing Law.    THIS AMENDMENT NO. 1 SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH, AND
ENFORCED UNDER, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED ENTIRELY WITHIN SUCH STATE. 

        Section C.    Further Assurances.    Each of the parties covenants and agrees to take all such actions and to
execute all such documents as may be necessary or advisable to implement the provisions of this Amendment No. 1 fully and effectively and to make them binding on the parties hereto. 

        Section D.    Counterparts.    This Amendment No. 1 may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by
all, of the parties hereto. 

[SIGNATURE PAGES FOLLOW]

        IN WITNESS WHEREOF, this AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT has been executed by the parties hereto as of the date first set forth above. 

	 	 	MetroPCS, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	MetroPCS Wireless, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	MetroPCS, California/Florida, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	MetroPCS Chico, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	MetroPCS Georgia, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS1, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

	 	 	GWI PCS2, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS3, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS4, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS5, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 

AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT—Signature Pages

	 	 	GWI PCS6, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS7, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS8, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS9, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS10, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS11, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 

AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT—Signature Pages

	 	 	GWI PCS12, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS13, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	GWI PCS14, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 
	 	 	 	 	 
	 	 	Reauction, Inc.
	 	 	 	 	 
	 	 	 	 	 
	 	 	By:	 	 
	 	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer

[SIGNATURE
PAGES FOR PURCHASERS FOLLOW] 

AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT—Signature Pages

	 	 	 	 	PURCHASERS:
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Print Name of PURCHASER:
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Date:	 	 	 	By:	 	 
	 	 	
	 	 	 	

	 	 	 	 	 	 	 
	 	 	 	 	Name:	 	 
	 	 	 	 	 	 	

	 	 	 	 	 	 	 
	 	 	 	 	Title:	 	 
	 	 	 	 	 	 	

AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT—Signature Pages

 
 

Schedule 1    
    

AMENDED AND RESTATED

SCHEDULE OF PURCHASERS  

 dated as of November 13, 2000  

[Schedule
begins on following page] 

 
 

Exhibit A-1    
    
    CERTIFICATE OF DESIGNATIONS    
    

        [Exhibit begins on following page] 

 
 

Exhibit A-2    
    
    SIXTH AMENDED AND RESTATED
  CERTIFICATE OF INCORPORATION    
    

        [Exhibit begins on following page] 

 
 

Exhibit D-1    
    
    AMENDMENT NO. 1 TO
  AMENDED AND RESTATED STOCKHOLDERS AGREEMENT    
    

        [Exhibit begins on following page] 

 
 

AMENDMENT NO. 2 TO AMENDMENT NO. 2 TO
  SECURITIES PURCHASE AGREEMENT    
    
    dated as of December 12, 2000    
    

        Reference is hereby made to the SECURITIES PURCHASE AGREEMENT, dated as of July 17, 2000, as amended by Amendment No. 1 thereto dated as of
November 13, 2000 (as so amended, the "Agreement"), by and among MetroPCS, Inc., a Delaware corporation (the "Company"), the subsidiaries of the Company listed on Schedule 2
thereto (collectively, the "Subsidiaries") and each of the PURCHASERS listed on Schedule 1 thereto (collectively, together with their successors and assigns, the "Purchasers"). 

        This
AMENDMENT NO. 2 TO SECURITIES PURCHASE AGREEMENT dated as of December 12, 2000 (this "Amendment No. 2") between the Company, the Subsidiaries and each of the
Purchasers is entered into pursuant to Section 9.4 of the Agreement for the purpose of modifying and adding certain provisions of and to the Agreement. Initially capitalized terms used herein
not otherwise defined shall have the meanings set forth in the Agreement, including Annex A thereto. 

 
 

W I T N E S S E T H:    
    

        WHEREAS, pursuant and subject to the Agreement, the Company has agreed to sell and the Purchasers have the right to purchase shares of the Company's Preferred
Stock with an aggregate liquidation preference of up to $300,000,000; and 

        WHEREAS,
the Company and the Purchasers desire to modify the Agreement in order to (i) add Robert Barrett as an additional Purchaser of the Preferred Stock, but not of the Notes,
(ii) decrease the Commitment Amount for CCP/METROPCS L.L.C., (iii) obtain a waiver with respect to the Company's use of proceeds from the Subsequent Closing, and (iv) extend the
time period during which Purchasers may terminate their respective Commitments and rescind their respective future purchases of Preferred Stock following the Commitment Revocation Date. 

        NOW,
THEREFORE, in consideration of the mutual agreements contained in this Amendment No. 2, the parties hereto agree as follows: 

 
 

ARTICLE I    
    
    AMENDMENTS TO AGREEMENT    
    

        Section A.    Purchasers and Schedule 1.    The Amended and Restated Schedule 1 to the Agreement
hereby is further amended to add Robert Barrett as an additional Purchaser of the Preferred Stock (the "New Purchaser") and to decrease the Commitment Amount for CCP/METROPCS, L.L.C. and the Amended
and Restated Schedule 1 to the Agreement is hereby deleted and replaced in its entirety with the Second Amended and Restated Schedule of Purchasers attached hereto as Schedule 1 to this
Amendment No. 2. 

        Section B.    Additional Fundings.    On December 20, 2000, the New Purchaser shall fund its pro rata
portion of its Commitment Amount in relation to the total Commitment Amount and with respect to the funding for the Subsequent Closing. Such funding shall, for all purposes of the Agreement, be deemed
to be included as part of the Subsequent Closing. 

        Section C.    Waiver of Use of Proceeds.    Purchasers hereby jointly and severally waive the restrictions on
the Company's use of proceeds from the sale of Notes and Preferred Stock set forth in Section 7.4 of the Agreement with respect to the Company's loan of up to $15,000,000 to its Affiliate, MPCS
Wireless, Inc., for the purposes of enabling MPCS Wireless, Inc. to bid in the C and F Block Broadband PCS Spectrum Auction being conducted by the FCC on or about December 12,
2000. 

        Section
D.    Extension of Termination Rights.    Section 2.2(k) of the Agreement is hereby amended and
restated in its entirety to read as follows: 

        (k)   If
as of the close of business on the tenth (10th) Business Day after the Optional Revocation Date (the "Commitment Revocation Date") one or more
Purchasers have revoked their Commitments (the collective Commitment Amount so revoked being the "Commitment Deficiency"), then the following shall occur: 

        (i)    No
later than 10:00 a.m. New York time on the Business Day following the Commitment Revocation Date, the Company shall notify each Purchaser of the aggregate
Commitment Amount as of the close of business on the Commitment Revocation Date and any Commitment Deficiency. Except with respect to the Purchaser's portion of its Commitment Amount attributable to
the first $50 million of the aggregate Commitment Amount, each Purchaser shall have the right to terminate its Commitment and rescind its future purchase of Preferred Stock by notice delivered
to the Company no later than 5:00 p.m. New York time on the sixth (6th) Business Day following the Commitment Revocation Date (provided that the Company has delivered its notice
pursuant to this paragraph (k) (i)), and such Purchaser's Commitment shall terminate. 

        (ii)   Each
Purchaser's Commitment (including, subject to Section 2.2(i), any Affiliate assignee thereof), which has not been terminated or revoked pursuant to
paragraph (j) or (k)(i) above, shall become irrevocable and noncancellable as of the close of business on the sixth (6th) Business Day after the Commitment Revocation Date,
provided that the Purchaser's Commitment shall be subject to cancellation and termination pursuant to paragraph (k)(v) below. During the twelve (12) Business Days following the
Commitment Revocation Date, each such Purchaser shall have an exclusive right of first refusal to commit to purchase additional shares of Preferred Stock that are attributable to the Commitment
Deficiency by delivering the corresponding additional Commitments to the Company. Such right of first refusal shall be exercisable pro-rata, based on the total Commitment Amount for each
Purchaser (inclusive of the original principal amount of the Notes) as of the close of business on the sixth (6th) Business Day following the Commitment Revocation Date. 

        (iii)  If
as of the close of business on the twelfth (12th) Business Day after the Commitment Revocation Date there still exists any Commitment Deficiency, then the Company
shall have the right, during the thirteenth (13th) through the twenty fifth (25th) Business Days following the Commitment Revocation Date, to accept Commitments from
additional purchasers of Preferred Stock, subject to the same terms and conditions as the Purchasers, in order to eliminate any remaining Commitment Deficiency. After the Second Preferred Closing, if
any additional purchaser delivers a Commitment to purchase Preferred Stock pursuant to this subsection (k), then such additional purchaser shall fund its purchase of Preferred Stock in respect of a
purchase date in a manner that results, after such funding, in such additional purchaser having funded the same percentage of its share of the Commitment Amount as the other Purchasers have funded of
their share of the Commitment Amounts (inclusive of the original principal amount of the Notes). 

        (iv)  Notwithstanding
paragraph (iii) above, if as of 12:00 p.m., New York time, on the twelfth (12th) Business Day after the Commitment
Revocation Date the aggregate Commitment Amount is at least $150 million, the Third Preferred Closing involving the purchase of up to $100 million (plus, any amount of the
$25 million that has not been funded in connection with the Second Preferred Closing) of Preferred Stock shall occur on the twelfth (12th) Business Day following the Commitment
Revocation Date or a later date determined by the Board of Directors; provided, however, that the date on which funds are remitted for such Third Preferred Closing shall occur on the later of ten
(10) Business Days after the Third Preferred Closing or January 2, 2001. 

        (v)   If
as of the close of business on the twenty fifth (25th) Business Day after the Commitment Revocation Date the aggregate Commitment Amount is less than
$150 million, 

any
remaining unfunded Commitments to purchase Preferred Stock shall be rescinded and cancelled, and all Commitments shall be deemed to have terminated as of the Commitment Revocation Date. 

Notwithstanding
the foregoing, the "Commitment Deficiency" for all purposes of the Agreement shall be determined by reference to the Amended and Restated Schedule of Purchasers dated as of
November 13, 2000 without giving affect to the amendments to such schedule contemplated by this Amendment No. 2. 

 
 

ARTICLE II    
    
    MISCELLANEOUS    
    

        Section A.    Ratification & Conflicts.    The Agreement as supplemented by this Amendment No. 2
is ratified and confirmed, and shall remain in full force and effect. In the event of any conflict between the terms of the Agreement and this Amendment No. 2, the terms and provisions of this
Amendment No. 2 shall govern and control. 

        Section B.    Governing Law.    THIS AMENDMENT NO. 2 SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH, AND
ENFORCED UNDER, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED ENTIRELY WITHIN SUCH STATE. 

        Section C.    Further Assurances.    Each of the parties covenants and agrees to take all such actions and to
execute all such documents as may be necessary or advisable to implement the provisions of this Amendment No. 2 fully and effectively and to make them binding on the parties hereto. 

        Section D.    Counterparts.    This Amendment No. 2 may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one instrument. Each counterpart
may consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. 

        [SIGNATURE PAGES FOLLOW]

        IN WITNESS WHEREOF, this AMENDMENT NO. 2 TO SECURITIES PURCHASE AGREEMENT has been executed by the parties hereto as of the date first set forth above. 

	 	 	MetroPCS, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

MetroPCS Wireless, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

MetroPCS, California/Florida, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

MetroPCS Chico, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

MetroPCS Georgia, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS1, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS2, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 

	

 	
 	

GWI PCS3, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS4, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS5, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS6, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS7, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS8, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS9, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 

	

 	
 	

GWI PCS10, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS11, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS12, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS13, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS14, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

Reauction, Inc.
	

 	
 	

By:	

 
 Roger D. Linquist

President and Chief Executive Officer

        [SIGNATURE
PAGES FOR PURCHASERS FOLLOW] 

	 	 	PURCHASERS:
	

 	
 	

Print Name of PURCHASER:
	

 	
 	

	

Date:                                   	
 	

By:	

 
	 	 	 	

	

 	
 	

Name:	

 
	 	 	 	

	

 	
 	

Title:	

 
	 	 	 	

Schedule 1  

 SECOND AMENDED AND RESTATED

SCHEDULE OF PURCHASERS  

 dated as of December 12, 2000  

        [Schedule begins on following page] 

 
 
 

AMENDMENT NO. 3 TO
  SECURITIES PURCHASE AGREEMENT    
    
    dated as of December 19, 2000    
    

        Reference is hereby made to the SECURITIES PURCHASE AGREEMENT, dated as of July 17, 2000, as amended by Amendment No. 1 thereto dated as of
November 13, 2000 and as further amended by Amendment No. 2 thereto dated as of December 12, 2000 (as so amended, the "Agreement"), by and among Metro PCS, Inc., a Delaware
corporation (the "Company"), the subsidiaries of the Company listed on Schedule 2 thereto (collectively, the "Subsidiaries") and each of the PURCHASERS listed on Schedule 1 thereto
(collectively, together with their successors and assigns, the "Purchasers"). 

        This
AMENDMENT NO. 3 TO SECURITIES PURCHASE AGREEMENT dated as of December 19, 2000 (this "Amendment No. 3") between the Company, the Subsidiaries and each of the
Purchasers is entered into pursuant to Section 9.4 of the Agreement for the purpose of modifying and adding certain provisions of and to the Agreement. Initially capitalized terms used herein
not otherwise defined shall have the meanings set forth in the Agreement, including Annex A thereto. 

W I T N E S S E T H:  

        WHEREAS, pursuant and subject to the Agreement, the Company has agreed to sell and the Purchasers have the right to purchase shares of the Company's Preferred
Stock with an aggregate liquidation preference of up to $300,000,000; and 

        WHEREAS,
the Company and the Purchasers desire to modify the Agreement in order to (i) decrease the Commitment Amount for Metro PCS Investors LLC, and (ii) extend the time
period during which Purchasers may terminate their respective Commitments and rescind their respective future purchases of Preferred Stock following the Commitment Revocation Date. 

        NOW,
THEREFORE, in consideration of the mutual agreements contained in this Amendment No. 3, the parties hereto agree as follows: 

ARTICLE I  

 AMENDMENTS TO AGREEMENT  

        Section A.    Purchasers and Schedule 1.    The Second Amended and Restated Schedule of Purchasers
constituting Schedule 1 to the Agreement hereby is amended to decrease the Commitment Amount for Metro PCS Investors LLC and such Second Amended and Restated Schedule of Purchasers is hereby
deleted and replaced in its entirety with the Third Amended and Restated Schedule of Purchasers attached hereto as Schedule 1 to this Amendment No. 3. 

        Section B.    Extension of Termination Rights.    Section 2.2(k) of the Agreement is hereby amended and
restated in its entirety to read as follows: 

        (k)   If
as of the close of business on the tenth (10th) Business Day after the Optional Revocation Date (the "Commitment Revocation Date") one or more
Purchasers have revoked their Commitments (the collective Commitment Amount so revoked being the "Commitment Deficiency"), then the following shall occur: 

        (i)    No
later than 10:00 a.m. New York time on the Business Day following the Commitment Revocation Date, the Company shall notify each Purchaser of the aggregate
Commitment Amount as of the close of business on the Commitment Revocation Date and any Commitment Deficiency. Except with respect to the Purchaser's portion of its Commitment Amount attributable to
the first $50 million of the aggregate Commitment Amount, each Purchaser shall have the right to terminate its Commitment and rescind its future purchase of Preferred Stock by notice delivered
to the Company no later than 5:00 p.m. 

 

New
York time on January 8, 2001 (provided that the Company has delivered its notice pursuant to this paragraph (k) (i)), and such Purchaser's Commitment shall terminate. 

        (ii)   Each
Purchaser's Commitment (including, subject to Section 2.2(i), any Affiliate assignee thereof), which has not been terminated or revoked pursuant to
paragraph (j) or (k)(i) above, shall become irrevocable and noncancellable as of the close of business on January 8, 2001, provided that the Purchaser's Commitment shall be subject to
cancellation and termination pursuant to paragraph (k)(v) below. Until and including January 17, 2001, each such Purchaser shall have an exclusive right of first refusal to commit to
purchase additional shares of Preferred Stock that are attributable to the Commitment Deficiency by delivering the corresponding additional Commitments to the Company. Such right of first refusal
shall be exercisable pro-rata, based on the total Commitment Amount for each Purchaser (inclusive of the original principal amount of the Notes) as of the close of business on
January 8, 2001. 

        (iii)  If
as of the close of business on January 17, 2001 there still exists any Commitment Deficiency, then the Company shall have the right, from and including
January 18, 2001 through and including February 2, 2001, to accept Commitments from additional purchasers of Preferred Stock, subject to the same terms and conditions as the Purchasers,
in order to eliminate any remaining Commitment Deficiency. After the Second Preferred Closing, if any additional purchaser delivers a Commitment to purchase Preferred Stock pursuant to this
subsection (k), then such additional purchaser shall fund its purchase of Preferred Stock in respect of a purchase date in a manner that results, after such funding, in such additional
purchaser having funded the same percentage of its share of the Commitment Amount as the other Purchasers have funded of their share of the Commitment Amounts (inclusive of the original principal
amount of the Notes). 

        (iv)  Notwithstanding
paragraph (iii) above, if as of 12:00 p.m., New York time, on January 17, 2001 the aggregate Commitment Amount is at least
$150 million, the Third Preferred Closing involving the purchase of up to $100 million (plus, any amount of the $25 million that has not been funded in connection with the Second
Preferred Closing) of Preferred Stock shall occur on January 17, 2001 or a later date determined by the Board of Directors; provided, however, that the date on which funds are remitted for such
Third Preferred Closing shall occur ten (10) Business Days after the Third Preferred Closing. 

        (v)   If
as of the close of business on February 2, 2001 the aggregate Commitment Amount is less than $150 million, any remaining unfunded Commitments to
purchase Preferred Stock shall be rescinded and cancelled, and all Commitments shall be deemed to have terminated as of the Commitment Revocation Date. 

Notwithstanding
the foregoing, the "Commitment Deficiency" for all purposes of the Agreement shall be determined by reference to the Amended and Restated Schedule of Purchasers dated as of
November 13, 2000 without giving affect to the amendments to such schedule contemplated by this Amendment No. 3. 

ARTICLE II  

 MISCELLANEOUS  

        Section A.    Ratification & Conflicts.    The Agreement as supplemented by this Amendment No. 3
is ratified and confirmed, and shall remain in full force and effect. In the event of any conflict between the terms of the Agreement and this Amendment No. 3, the terms and provisions of this
Amendment No. 3 shall govern and control. 

2

 

        Section B.    Governing Law.    THIS AMENDMENT NO. 3 SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH, AND
ENFORCED UNDER, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED ENTIRELY WITHIN SUCH STATE. 

        Section C.    Further Assurances.    Each of the parties covenants and agrees to take all such actions and to
execute all such documents as may be necessary or advisable to implement the provisions of this Amendment No. 3 fully and effectively and to make them binding on the parties hereto. 

        Section D.    Counterparts.    This Amendment No. 3 may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by
all, of the parties hereto. 

[SIGNATURE PAGES FOLLOW]

3

   
        IN WITNESS WHEREOF, this AMENDMENT NO. 3 TO SECURITIES PURCHASE AGREEMENT has been executed by the parties hereto as of the date first set forth above. 

	 	 	MetroPCS, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

MetroPCS Wireless, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

MetroPCS, California/Florida, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

MetroPCS Chico, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

MetroPCS Georgia, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS1, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS2, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 

4

 

	

 	
 	

GWI PCS3, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS4, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS5, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS6, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS7, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS8, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS9, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS10, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 

5

 

	

 	
 	

GWI PCS11, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS12, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS13, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

GWI PCS14, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	

Reauction, Inc.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer

[SIGNATURE
PAGES FOR PURCHASERS FOLLOW] 

6

 

	 	 	 	 	PURCHASERS:
	

 	
 	

 	
 	

Print Name of PURCHASER:
	

 	
 	

 	
 	

 	
 	

 
	 	 	 	 	

	

Date:	
 	

 	
 	

By:	
 	

 
	 	 	
	 	 	 	

	

 	
 	

 	
 	

Name:	
 	

 
	 	 	 	 	 	 	

	

 	
 	

 	
 	

Title:	
 	

 
	 	 	 	 	 	 	

7

  

 
 

Schedule 1    
    
    THIRD AMENDED AND RESTATED
  SCHEDULE OF PURCHASERS    
    
    dated as of December 19, 2000    
    

        [Schedule begins on following page] 

8

  

 
 

AMENDMENT NO. 4 TO
  SECURITIES PURCHASE AGREEMENT    
    
    dated as of January 4, 2001    
    

        Reference is hereby made to the SECURITIES PURCHASE AGREEMENT, dated as of July 17, 2000, as amended by Amendment No. 1 thereto dated as of
November 13, 2000, as further amended by Amendment No. 2 thereto dated as of December 12, 2000, and as further amended by Amendment No. 3 thereto dated as of
December 19, 2000 (as so amended, the "Agreement"), by and among MetroPCS, Inc., a Delaware corporation (the "Company"), the subsidiaries of the Company listed on Schedule 2
thereto (collectively, the "Subsidiaries") and each of the PURCHASERS listed on Schedule 1 thereto (collectively, together with their successors and assigns, the "Purchasers"). 

        This
AMENDMENT NO. 4 TO SECURITIES PURCHASE AGREEMENT dated as of January 4, 2001 (this "Amendment No. 4") between the Company, the Subsidiaries and each of the Purchasers
is entered into pursuant to Section 9.4 of the Agreement for the purpose of modifying and adding certain provisions of and to the Agreement. Initially capitalized terms used herein not
otherwise defined shall have the meanings set forth in the Agreement, including Annex A thereto. 

 
 

W I T N E S S E T H:    
    

        WHEREAS, pursuant and subject to the Agreement, the Company has agreed to sell and the Purchasers have the right to purchase shares of the Company's
Series D Convertible Preferred Stock, par value $0.0001 per share, with an aggregate liquidation preference of up to $300,000,000; and 

        WHEREAS,
in connection with the purchase of the Company's Series D Preferred Stock, the Company and the Purchasers desire to: (A)
amend Sections 3(c) and 6 of the Certificate of Designations for the Series D Preferred Stock in order to reduce the initial Conversion Price of the Series D Preferred Stock from $338.39
per share to $281.99 per share, and to provide for certain additional liquidation preference rights upon certain sales of assets of the Company and additional co-sale rights to receive an
equivalent portion of their liquidation preference from a sale of 1% or more of the voting stock of the Company; (B) modify the first paragraph of
Section 2.2(a) of the Agreement to include the amendment of the Stockholders Agreement and the Certificate of Incorporation of the Company as an additional conditions precedent to the Third
Preferred Closing and to provide for the remittance of funds for the Third Preferred Closing to occur on or after February 1, 2001;  (C) amend Section 2.2(a) of the Agreement to provide
for the Company to request a supplemental funding for any additional Commitments that
were accepted by the Company after the Subsequent Closing and to amend and restate Section 2.2(i) of the Agreement to permit certain Purchasers to transfer their Series D
Preferred Stock with voting rights to Affiliates; (D) modify Section 2.2(a) of the Agreement to eliminate the supermajority voting requirement
for additional fundings of the Commitment Amount after the Third Preferred Closing; (E) amend Section 2.2(a) and add new
Section 2.2(m) to the Agreement to provide each Purchaser with an additional right to fund all of the unfunded portion of such Purchaser's Commitment Amount;  (F) amend Section 2.2(k) of the
Agreement to delete the Purchaser's exclusive right of first refusal to submit additional Commitments to cover
any Commitment Deficiency; (G) amend Section 7.10 to set the Board of Directors at seven directors and amend sections 2.2 and 3.1 of the
Stockholders Agreement to provide for three directors attributable to the Class C Common Stock with one nominated by Accel, one by MC Venture Partners and one by the holders of the
Series D Preferred Stock and to provide for supermajority voting by only two "Outside Directors", who are nominated by Accel and MC Venture Partners;  (H) amend section 2.1 of the
Stockholders Agreement to provide for the termination of the special voting rights of the Class A.
Stockholders and the supermajority voting rights upon certain events; and (I) modify the definition of "Qualified Public Offering" in Annex A to the
Agreement. 

1

 

        NOW,
THEREFORE, in consideration of the mutual agreements contained in this Amendment No. 4, the parties hereto agree as follows: 

 
 

ARTICLE I    
    
    AMENDMENTS TO AGREEMENT    
    

        Section A.    Amendments to Certificate of Designations.    Subject to the approval of the holders of not less
than (a) a majority of each class of the Company's outstanding common stock entitled to vote thereon,
and (b) 662/3% of the Preferred Stock (the "Requisite Stockholder Consent"), the Company shall amend its Sixth Amended and Restated Certificate of Incorporation to
(i) amend Section 3(c) of the Certificate of Designations to decrease the initial Conversion Price of the Preferred Stock from $338.39 per share to $281.99 per share, and
(ii) amend and restate Section 6 of the Certificate of Designations in its entirety to read as follows: 

        "Section 6.    Preference upon Liquidation Event or Preferred Co-Sale Event.    

        (a)    Liquidation Event.    For purposes of this Section 6, a "Liquidation
Event" shall mean a liquidation, dissolution or winding up of this Company that shall be deemed to be occasioned by, or to include (i) the acquisition of the Company by
another entity by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger, consolidation, issuance of new securities or transfer of issued
and outstanding securities) that results in the transfer of fifty percent (50%) or more of the outstanding voting power of the stock of the Company, (ii) a sale or other disposition of all or
substantially all of the assets of the Company, or (iii) a sale or other disposition of assets that results in funds being available for distribution to stockholders which are in excess of
those necessary or appropriate for the Company to conduct its business operations (including repayment of its outstanding liabilities) and execute its business plan, as determined by the Board of
Directors, unless, in any event, within 30 days after delivery of written notice of any such transaction by the Company to the holders of the Series D Preferred Stock, the holders of
662/3% of the shares of the Series D Preferred Stock then outstanding provide the Company with written notice that such transaction shall not be deemed a "Liquidation Event" for
purposes of this Section 6. With respect to a Liquidation Event, the Company shall give each holder of the Series D Preferred Stock written notice of any such transaction constituting a
Liquidation Event no less than 30 days prior to the occurrence thereof. 

        (b)    Liquidation Preference (including Participation Rights).    The "Liquidation
Value" of the Series D Preferred Stock shall be $100 per share. The "Series D Liquidation Preference" for each
share of Series D Preferred Stock shall equal the sum of (1) the Liquidation Value, plus (2) the greater of (i) the amount of all accrued and unpaid dividends and
distributions thereon, and (ii) the amount that would have been paid in respect of each share of Series D Preferred Stock had such share been converted into Class C Common Stock
immediately prior to either the Liquidation Event or the Preferred Co-Sale Event, as applicable, at the then current conversion price. Upon any Liquidation Event, no distributions shall be
made to any holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or winding up) to the Series D Preferred Stock unless, prior thereto, all of the
holders of shares of Series D Preferred Stock shall have received payment in full of the aggregate Series D Liquidation Preference. 

        (c)    Ratable Distributions.    Upon a Liquidation Event, and in the event there are not sufficient assets available
to permit payment in full of the Series D Liquidation Preference, then all of the assets available for distribution shall be distributed ratably to the holders of Series D Preferred
Stock in proportion to the amount that would be paid to such holders if such assets were sufficient to permit payment in full. 

2

 

        (d)    Preferred Co-Sale Event.    For purposes of this Section 6, and for a two year period
following the date on which this Amendment One has been filed with Secretary of State of the State of Delaware, a "Preferred Co-Sale Event"
shall mean a sale of stock of the Company during such two year period that results in the transfer of one percent (1%) or more, but less than fifty percent (50%), of the outstanding voting power of
the stock of the Company; provided, however, that a "Preferred Co-Sale Event" shall not include any transfers of voting stock to a "Permitted Transferee" pursuant to and as defined in
Section 4.1 (b), (c) and (d) of the Stockholders Agreement or any transfers of voting stock to comply with the applicable FCC regulations pursuant to Section 4.2 of the Stockholders
Agreement; and provided, further that a transfer that would otherwise involve a Preferred Co-Sale Event shall be subject to the "Rights of First
Refusal" (as defined and described in Section 4.3 of the Stockholders Agreement). If a prospective Preferred Co-Sale Event occurs or may occur during the
applicable two-year period, then at least thirty (30) days prior to the proposed transfer, any Stockholders that seek to transfer any shares of voting stock of the Company owned by
such Stockholders (each, a "Selling Stockholder") shall deliver written notice of such Stockholders' proposal to transfer such voting stock (a
"Notice of Intention"), accompanied by a copy of the agreement relating to such transfer with any person, including such person's identity, the purchase
price and all material terms (the "Sale Proposal"), to each of the Series D Preferred Stockholders, setting forth (x) such Selling
Stockholders' agreement to make such transfer (the consideration for which shall be limited to proceeds in the form of cash and/or securities), (y) the number and class of voting security of
the Company agreed to be transferred (the "Offered Securities"), and (z) the price at which such Selling Stockholders have agreed to (or are
willing to) transfer the Offered Securities (the "Proposed Sales Price") and other terms applicable thereto. 

        For
purposes of this Section 6, and with respect to the valuation of securities that will be paid as all or part of the sales proceeds for the transfer of voting stock pursuant to
a Preferred Co-Sale Event, the value of such securities as of a particular date shall be determined as follows: (i) if traded on a securities exchange or through the Nasdaq National
Market, the value shall be deemed to be the average of the closing prices of the securities on such exchange over the twenty (20) day period ending three (3) days prior to such date;
(ii) if traded over-the-counter, the value shall be deemed to be the average of the closing bid or sale prices (whichever is applicable) over the twenty (20) day
period ending three (3) days prior to such date; and (iii) if there is no active public market, the value shall be the fair market value thereof, as determined in good faith by the Board
of Directors of the Company. If the Company incurs any expenses in connection with such determination, such expenses shall be paid by the Selling Stockholders in proportion to the number of shares of
voting stock that each such Selling Stockholder proposes to sell. 

        Notwithstanding
Section 4.4 of the Stockholders Agreement, in the event that a Preferred Co-Sale Event occurs and with respect to any or all Offered Securities for
which the Rights of First Refusal is not being exercised (the "Co-Sale Stock"), then any Selling Stockholder that wishes to sell all or a
portion of its shares of Co-Sale Stock may transfer such available Offered Securities only pursuant to and in accordance with the following provisions of this Section 6(d) of the
Certificate of Designations. 

        Each
of the Series D Preferred Stockholders shall have the right to participate in the sale of the applicable Offered Securities on the terms and conditions herein stated (the
"Preferred Co-Sale Option"), which right shall be exercisable upon written notice (the "Acceptance
Notice") to the Selling Stockholders within ten (10) days after the Selling Stockholders deliver the Notice of Intention to the Series D Preferred Stockholders.
The Acceptance Notice shall indicate the maximum number of shares of Series D Preferred Stock that such Series D Preferred Stockholders (each, a
"Co-Sale Stockholder") wishes to sell (including the number of shares it would sell if one or more other Co-Sale Stockholders do
not elect to participate in the sale) on the terms and conditions stated in the Notice of Intention. 

3

  

        Each
Co-Sale Stockholder shall have the right to exercise its Preferred Co-Sale Option and sell a portion of its shares of Series D Preferred Stock to be
determined by such Co-Sale Stockholder, which portion may not exceed the product obtained by multiplying (X) the number of
Co-Sale Stock that were proposed to be sold by the Selling Stockholder, by (Y) a fraction, (N) the numerator of which is the total
number of shares of Common Stock (on an as converted basis) that all shares of the Series D Preferred Stock held by such Co-Sale Stockholder are convertible into on the date of the
Acceptance Notice (as determined in accordance with Section 1.2 of the Stockholders Agreement) and (D) the denominator of which is the total number of shares of Common Stock (on an as
converted basis) then held as of the date of such Acceptance Notice by the Selling Stockholder, plus the total number of shares of Common Stock (on an as converted basis) that all shares of the
Series D Preferred Stock held by all of the Co-Sale Stockholders desiring to participate are convertible into on the date of the Acceptance Notice (as determined in accordance with
Section 1.2 of the Stockholders Agreement). To the extent that one or more Co-Sale Stockholders elect to not exercise their Preferred Co-Sale Option, then the rights of
the other Co-Sale Stockholders (who exercise their Preferred Co-Sale Option) to sell shares pursuant to their Preferred Co-Sale Option shall be increased
proportionately by the full amount of shares which the non-electing Co-Sale Stockholders were entitled to sell pursuant to this Section 6(d). Within ten (10) days
after the date by which the Co-Sale Stockholders were first required to notify the Selling Stockholders of their intent to exercise their Preferred Co-Sale Option, the Selling
Stockholder shall notify each participating Co-Sale Stockholder of the number of shares of Co-Sale Stock held by such Co-Sale Stockholder that will be included in
the sale and the date on which such sale will be consummated pursuant to this Section 6(d). 

        Each
of the Co-Sale Stockholders participating in a sale under this Section 6(d) may effect its participation in such sale hereunder by delivery to the proposed
transferee, or to the Selling Stockholders for delivery to the proposed transferee, of one or more instruments or certificates, properly endorsed for transfer, representing the shares of
Series D Preferred Stock it elects to sell therein, provided that no Co-Sale Stockholder shall be required to make any representations or warranties or provide any indemnities in
connection therewith other than with respect to its ownership of the shares of Series D Preferred Stock being conveyed. At the time of consummation of the Preferred Co-Sale Event,
the proposed transferee shall remit directly to each such Co-Sale Stockholder that portion of the sale proceeds equal to the greater of: (i) the aggregate of the Series D
Liquidation Preference for the shares of Series D Preferred Stock being sold by such Co-Sale Stockholder, as calculated with respect to the total sales proceeds for all
Co-Sale Stock being sold in connection with such Preferred Co-Sale Event, or (ii) the aggregate of the purchase price per share (on an as converted to Common Stock
basis) for the shares of Series D Preferred Stock being sold by such Co-Sale Stockholder. 

        In
the event that the sale is not consummated pursuant to this Section 6(d) or the proposed transferee fails to timely remit to each Co-Sale Stockholder its portion of
the sale proceeds, then such sale shall be deemed to be void, and any transfers of shares of voting stock pursuant to such sale shall be deemed to be in violation of the provisions of the Certificate
of Designations and the Stockholders Agreement, unless the Selling Stockholder once again complies with the provisions of this Section 6(d) with respect to such Offered Securities." 

        Section B.    Additional Condition Precedent to Third Preferred Closing.    

        1.     The
last sentence of the first paragraph of Section 2.2 (a) of the Agreement is amended and restated in its entirety to read as follows: "In connection with
the Third Preferred Closing, each Purchaser's obligation to purchase and pay for the Series D Preferred Stock to be sold to such Purchaser at the Third Preferred Closing shall be conditioned
upon the following: (1) the satisfaction or waiver, prior to or at the Third Preferred Closing, of the conditions set forth in Sections 3A.1, 3A.2, 3A.3, 3A.10 and 3A.12, provided that each
such Section is applied by substituting the "Third Preferred 

4

 

Closing"
for any references to the "Subsequent Closing"; (2) the receipt of the Requisite Stockholder Consent with respect to (i) the filing of Amendment One to Sixth Amended and
Restated Certificate of Incorporation of the Company, and (ii) Amendment No. 2 to Amended and Restated Stockholders Agreement; and (3) the filing of Amendment One to Sixth Amended
and Restated Certificate of Incorporation in the State of Delaware. 

        2.     Section 2.2
(a) of the Agreement is further amended by deleting the proviso at the end of the third sentence in the first paragraph and replacing such
proviso with the following language: "provided, however, that the date of such remittance for the Third Preferred Closing shall occur no earlier than February 1, 2001." 

        Section C.    Supplemental Funding for Additional Commitments; Purchaser Transfers to Affiliates.    

        1.     Section 2.2
(a) of the Agreement is amended by inserting a new second paragraph after the first paragraph to read as follows: 

        "Notwithstanding
the preceding paragraph of this Section 2.2 (a), to the extent that any additional Commitments are accepted by the Company after the Subsequent Closing from
either existing Purchasers or new Purchasers of Series D Preferred Stock (each, an "Additional Commitment Amount"), then at the election of Company, as determined by its Board of Directors,
each such Purchaser shall fund a proportionate share of its Additional Commitment Amount as a supplemental
funding to the Subsequent Closing (the "Supplemental Funding"), so that following such Supplemental Funding all of the Purchasers own their proportionate share of Series D Preferred Stock in
relation to their Commitment Amount, the aggregate of all Commitment Amounts and the portion of the aggregate Commitment Amounts that have been and will be funded following such Supplemental Funding.
If the Company elects to have a Supplemental Funding, the Company shall provide each participating Purchaser with at least ten (10) Business Days prior notice of the date on which funds for
such Supplemental Funding shall be remitted to the Company and the amount each such Purchaser shall fund as part of such Supplemental Funding. If such Supplemental Funding occurs, then such
Supplemental Funding shall be deemed to be included as part of the Subsequent Closing for all purposes of the Agreement." 

        2.     Section 2.2(i) of
the Agreement is amended and restated in its entirety to read as follows: 

        "(i)  Any
Purchaser may purchase Preferred Stock hereunder in conjunction with only the following: (i) any of its Affiliates, (ii) any of its partners, limited
partners or members of such Purchaser that are transferees of Preferred Stock pursuant to distributions in accordance with the partnership agreement or operating agreement of such Purchaser or its
Affiliates and (iii) in the case of Pacific, GC Dev. Co., Inc. (and, if it purchases Preferred Stock, shall also constitute a "New Purchaser"); provided, in the case of (i) and
(ii) above, that such Purchaser retains the voting rights relating to such Preferred Stock, other than with respect to (x) any transfers by Pacific to its Affiliate, Pacific Capital
Partners I, L.P. (also known as Pacific Colony V, L.P.), or to GC Dev. Co., Inc., or (y) any transfers by J.H. Whitney IV, L.P. or Whitney Acquisition II, Corp. to one or more of its
Affiliates (including Whitney V, L.P.), pursuant to which the respective voting rights will also be transferred. Notwithstanding the foregoing, J.H. Whitney IV, L.P. or Whitney Acquisition II, Corp.
may not transfer the Preferred Stock or any voting rights in respect thereof to any Affiliate unless such Affiliate and the Company have applied for and received any necessary approvals under the HSR
Act, if applicable." 

        Section D.    Elimination of Supermajority Vote Requirement.    The second sentence of the second paragraph of
Section 2.2(a) of the Agreement is amended and restated in its entirety to read as follows: 

"After
the Third Preferred Closing, any demand from the Company to the Purchasers to fund up to the remaining Commitment Amount shall be authorized by a majority of the Board of Directors." 

5

 

        Section E.    Addition of Purchaser Funding Option.    

        1.     Section 2.2
(a) of the Agreement is amended by deleting the last sentence of the last paragraph of this subsection that reads as follows: "Subject to the
provisions of this Section 2.2, each Purchaser's Commitment shall remain in full force and effect for three years from the date of the Subsequent Closing and, to the extent not drawn, shall
then terminate." 

        2.     Section 2.2
of the Agreement is further amended by adding the following paragraph (m) at end thereof: 

        "(m) Subject
to the conditions set forth below, any Purchaser, in its sole discretion, shall have the right to fund all of such Purchaser's remaining unfunded Commitment
Amount hereunder for shares of Series D Preferred Stock that have an aggregate liquidation value equal to the amount being funded (the "Purchaser Funding Option"). Each Purchaser's exercise of
its Purchaser Funding Option shall be subject to and conditioned upon the following: (1) such Purchaser shall provide the Company with at least ten (10) Business Days prior written
notice of its intention to exercise its right to fund hereunder; and (2) such Purchaser shall not have breached or otherwise violated the applicable terms of this Agreement. If with respect to
the expected capital that is necessary or appropriate for the Company to conduct its business operations (including repayment of its outstanding liabilities) and execute its business plan, as
determined by its Board of Directors, the Company acting in good faith and using its best efforts pursuant to this Agreement has established and pursued its obligations to complete any closings for
the purchase of the Series D Preferred Stock in accordance with this Agreement (including any Supplemental Funding, the Second Preferred Closing, the Third Preferred Closing or any additional
closings) and a Purchaser has not funded the allocable share of its Commitment Amount in connection with any such closings for the purchase of the Series D Preferred Stock, then the Purchaser
Funding Option with respect to any remaining unfunded Commitment Amount for such Purchaser shall be canceled and terminated, without otherwise affecting any other rights, obligations or terms of such
Purchaser's Commitment. Subject to the provisions of this Section 2.2, each Purchaser's Commitment shall remain in full force and effect for three years from the date of the Subsequent Closing
and, to the extent not drawn, shall then terminate; provided, however, that the Purchaser Funding Option for each Purchaser shall continue in full force and effect, until such time as the Purchaser
notifies the Company of the termination of its Purchaser Funding Option with respect to any remaining unfunded Commitment Amount." 

        Section F.    Delete Purchaser's Right of First Refusal.    Section 2.2(k) of the Agreement is amended
and restated in its entirety to read as follows: 

        "(k) If
as of the close of business on the tenth (10th) Business Day after the Optional Revocation Date (the "Commitment Revocation Date") one or more
Purchasers have revoked their Commitments (the "Commitment Deficiency" shall mean the uncommitted amount needed to achieve an aggregate Commitment Amount of $300 million, including any
Commitment Amount being revoked hereunder), then the following shall occur: 

        (i)    No
later than 10:00 a.m. New York time on the Business Day following the Commitment Revocation Date, the Company shall notify each Purchaser of the aggregate
Commitment Amount as of the close of business on the Commitment Revocation Date and any Commitment Deficiency. Except with respect
to the Purchaser's portion of its Commitment Amount attributable to the first $50 million of the aggregate Commitment Amount, each Purchaser shall have the right to terminate its Commitment and
rescind its future purchase of Preferred Stock by notice delivered to the Company no later than 5:00 p.m. New York time on January 8, 2001 (provided that the Company has delivered its
notice pursuant to this paragraph (k) (i)), and such Purchaser's Commitment shall terminate. 

6

  

        (ii)   Each
Purchaser's Commitment (including, subject to Section 2.2(i), any Affiliate assignee thereof), which has not been terminated or revoked pursuant to
paragraph (j) or (k)(i) above, shall become irrevocable and noncancellable as of the close of business on January 8, 2001, provided that the Purchaser's Commitment shall be
subject to cancellation and termination pursuant to paragraph (k)(v) below. 

        (iii)  If
as of the close of business on January 8, 2001 there exists any Commitment Deficiency, then the Company shall have the right, from and including
January 8, 2001 through and including February 2, 2001, to accept Commitments from the existing Purchasers and any additional purchasers of Preferred Stock, subject to the same terms and
conditions as the Purchasers, in order to eliminate any remaining Commitment Deficiency; provided that the Company shall use reasonable efforts to provide, first, existing Purchasers (relating to such
Purchasers' Commitments) and, next, existing Stockholders with an opportunity to make additional Commitments. After the Second Preferred Closing, if any additional Purchaser delivers a Commitment to
purchase Preferred Stock pursuant to this subsection (k), then such additional Purchaser shall fund its purchase of Preferred Stock in respect of a purchase date in a manner that results, after such
funding, in such additional Purchaser having funded the same percentage of its share of the Commitment Amount as the other Purchasers have funded of their share of the Commitment Amounts (inclusive of
the original principal amount of the Notes). 

        (iv)  Notwithstanding
paragraph (iii) above, if as of 12:00 p.m., New York time, on January 8, 2001 the aggregate Commitment Amount is at least
$150 million, the Third Preferred Closing involving the purchase of up to $100 million (plus, any amount of the $25 million that has not been funded in connection with the Second
Preferred Closing) of Preferred Stock shall occur on a date determined by the Company and its Board of Directors; provided, however, that the date on which funds are remitted for such Third Preferred
Closing shall occur ten (10) Business Days after the Third Preferred Closing, but in any event no earlier than February 1, 2001. 

        (v)   If
as of the close of business on February 2, 2001 the aggregate Commitment Amount is less than $150 million, then, except with respect to the Purchaser's
portion of its Commitment Amount attributable to the first $50 million of the aggregate Commitment Amount, any remaining unfunded Commitments to purchase Preferred Stock shall be rescinded and
cancelled, and all Commitments shall be deemed to have terminated as of the Commitment Revocation Date. 

        (vi)  Within
one (1) Business Days after January 8, 2001, the Company shall provide each Purchaser with an Amended and Restated Schedule 1 to the
Agreement. To the extent that any Commitments are accepted by the Company after January 8, 2001, then on or before the first (1st) Business Day following February 2, 2001,
the Company shall provide each Purchaser with an Amended and Restated Schedule 1 to the Agreement." 

        Section G.    Board of Directors.    Section 7.10 of the Agreement hereby is deleted and replaced in its
entirety with the following: 

        "In
connection with the Subsequent Closing and pursuant to the Stockholders Agreement, the Board of Directors of the Company shall consist of seven (7) directors, subject to and
as determined pursuant to the Stockholders Agreement or the Bylaws of the Company. Thereafter, the Company will take no action to increase the size of the Board of Directors or decrease the number of
directors which the holders of Preferred Stock are entitled to nominate." 

7

 

        Section H.    Amendment to Definition of Qualified Public Offering.    The definition of "Qualified Public
Offering" set forth in Annex A to the Agreement is amended and restated in its entirety to read as follows: 

        "Qualified Public Offering" or "Qualifying Public Offering" means an Initial Public Equity
Offering which results in gross proceeds to the Company of at least $100 million in the aggregate, and which yields an adjusted equity valuation of two times the liquidation value of the
Series D Preferred Stock. 

 
 

ARTICLE II    
    
    MISCELLANEOUS    
    

        Section A.    Ratification & Conflicts.    The Agreement as supplemented by this Amendment No. 4
is ratified and confirmed, and shall remain in full force and effect. In the event of any conflict between the terms of the Agreement and this Amendment No. 4, the terms and provisions of this
Amendment No. 4 shall govern and control. 

        Section B.    Governing Law.    THIS AMENDMENT NO. 4 SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH,
AND ENFORCED UNDER, THE LAWS OF THE STATE OF NEW
YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED ENTIRELY WITHIN SUCH STATE. 

        Section C.    Further Assurances.    Each of the parties covenants and agrees to take all such actions and to
execute all such documents as may be necessary or advisable to implement the provisions of this Amendment No. 4 fully and effectively and to make them binding on the parties hereto. 

        Section D.    Counterparts.    This Amendment No. 4 may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by
all, of the parties hereto. 

        [SIGNATURE
PAGES FOLLOW] 

8

        IN WITNESS WHEREOF, this AMENDMENT NO. 4 TO SECURITIES PURCHASE AGREEMENT has been executed by the parties hereto as of the date first set forth above. 

	 	 	MetroPCS, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS Wireless, Inc.
 
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS, California/Florida, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS Chico, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS Georgia, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer

	 	 	GWI PCS1, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS2, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS3, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS4, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS5, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS6, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer

	 	 	GWI PCS7, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS8, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS9, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS10, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS11, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer

	 	 	GWI PCS12, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS13, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS14, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
Reauction, Inc.
	

 	
 	

By:	
 	

 
 Roger D. Linquist

President and Chief Executive Officer

        [SIGNATURE
PAGES FOR PURCHASERS FOLLOW] 

	 	 	PURCHASERS:
	

 	
 	
Print Name of PURCHASER:
	

 	
 	

	

 	
 	

By:	
 	

 

	 	 	Name:	 	 

	 	 	Title:	 	 

	Date:	 	 
	 	 

  

 
 

AMENDMENT NO. 5 TO
  SECURITIES PURCHASE AGREEMENT    
    
    dated as of January 9, 2001    
    

        Reference is hereby made to the SECURITIES PURCHASE AGREEMENT, dated as of July 17, 2000, by and among MetroPCS, Inc., a Delaware corporation (the
"Company"), the subsidiaries of the Company listed on Schedule 2 thereto (collectively, the "Subsidiaries") and each of the PURCHASERS listed on Schedule 1 thereto (collectively,
together with their successors and assigns, the "Purchasers"), as amended by Amendment No. 1 thereto dated as of November 13, 2000, as further amended by Amendment No. 2 thereto
dated as of December 12, 2000, as further amended by Amendment No. 3 thereto dated as of December 19, 2000, and as further amended by Amendment No. 4 thereto dated as of
January 4, 2001 (as so amended, the "Agreement"). 

        This
AMENDMENT NO. 5 TO SECURITIES PURCHASE AGREEMENT dated as of January 9, 2001 (this "Amendment No. 5") between the Company, the Subsidiaries and each of the Purchasers
is entered into pursuant to Section 9.4 of the Agreement for the purpose of modifying and adding certain provisions of and to the Agreement. Initially capitalized terms used herein not
otherwise defined shall have the meanings set forth in the Agreement, including Annex A thereto. 

W I T N E S S E T H:  

        WHEREAS, pursuant and subject to the Agreement, the Company has agreed to sell and the Purchasers have the right to purchase shares of the Company's
Series D Convertible Preferred Stock, par value $0.0001 per share, with an aggregate liquidation preference of up to $300 million; and 

        WHEREAS,
the Company and the Purchasers desire to amend the applicable provisions of the Agreement and the Certificate of Designations to increase the issuance of the Series D
Preferred Stock to an aggregate liquidation value of up to $350 million and provide for the number of shares of up to 3,500,000. 

        NOW,
THEREFORE, in consideration of the mutual agreements contained in this Amendment No. 5, the parties hereto agree as follows: 

 
 

ARTICLE I    
    
    AMENDMENTS TO AGREEMENT    
    

        Section A.    Amendments to Increase Total Commitment Amount.    Section 1.1 of the Agreement hereby is
amended to delete the first sentence of such Section 1.1 and replace it with two sentences that read follows: 

        "The
Company has authorized the issuance and sale of its Series D Preferred Stock with an aggregate liquidation preference of up to $350 million, which may be issued and
sold pursuant to this Agreement. Upon the adoption of this Amendment No. 5, any references in the Agreement (1) to either $300 million or $300,000,000 shall be deemed to have been
changed to $350 million or $350,000,000, respectively, and (2) to either $295 million or $295,000,000 shall be deemed to have been changed to $345 million or $345,000,000,
respectively." 

        Section B.    Effectiveness of Amendment.    If the requisite percentage of Purchasers agree to and execute
this Amendment No. 5 pursuant to the Agreement, then this Amendment No. 5 shall become effective upon the satisfaction of the following conditions: (1) the filing of an amendment
to the Sixth Amended and Restated Certificate of Incorporation that provides for an increase in the number of authorized shares of the Series D Preferred Stock of up to 3,500,000 shares; and
(2) the receipt of a legal opinion from Andrews & Kurth LLP in the form of Exhibit A attached hereto. Notwithstanding 

1

 

any
provision to the contrary in the Agreement or this Amendment No. 5, until the preceding conditions have been satisfied, this Amendment No. 5 shall not become effective. 

 
 

ARTICLE II    
    
    MISCELLANEOUS    
    

        Section A.    Ratification & Conflicts.    The Agreement as supplemented by this Amendment No. 5
is ratified and confirmed, and shall remain in full force and effect. In the event of any conflict between the terms of the Agreement and this Amendment No. 5, the terms and provisions of this
Amendment No. 5 shall govern and control. 

        Section B.    Governing Law.    THIS AMENDMENT NO. 5 SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH,
AND ENFORCED UNDER, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED ENTIRELY WITHIN SUCH STATE. 

        Section C.    Further Assurances.    Each of the parties covenants and agrees to take all such actions and to
execute all such documents as may be necessary or advisable to implement the provisions of this Amendment No. 5 fully and effectively and to make them binding on the parties hereto. 

        Section D.    Counterparts.    This Amendment No. 5 may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by
all, of the parties hereto. 

[SIGNATURE
PAGES FOLLOW] 

2

        IN WITNESS WHEREOF, this AMENDMENT NO. 5 TO SECURITIES PURCHASE AGREEMENT has been executed by the parties hereto as of the date first set forth above. 

	

 	
 	
MetroPCS, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS Wireless, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS, California/Florida, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS Chico, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS Georgia, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS1, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 

	

 	
 	
GWI PCS2, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS3, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS4, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS5, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS6, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS7, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 

	

 	
 	
GWI PCS8, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS9, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS10, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS11, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS12, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS13, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 

	

 	
 	
GWI PCS14, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
Reauction, Inc.
	

 	
 	

By:	

 
	 	 	 	
 Roger D. Linquist

President and Chief Executive Officer

[SIGNATURE
PAGES FOR PURCHASERS FOLLOW] 

	

 	
 	

 	
 	

PURCHASERS:
	

 	
 	

 	
 	
Print Name of PURCHASER:
	

 	
 	

 	
 	

	

 	
 	

 	
 	

By:	

 
	 	 	 	 	 	

	

 	
 	

 	
 	

Name:	

 
	 	 	 	 	 	

	

 	
 	

 	
 	

Title:	

 
	 	 	 	 	 	

	

Date:	
 	

 	
 	

 	

 
	 	 	
	 	 	 

 
 

EXHIBIT A    
    
    Legal Opinion    
    

[Begins
on Next Page] 

  

 
 

AMENDMENT NO. 6 TO
  SECURITIES PURCHASE AGREEMENT    
    
    dated as of November 3, 2003    
    

        Reference is hereby made to the SECURITIES PURCHASE AGREEMENT, dated as of July 17, 2000, by and among MetroPCS, Inc., a Delaware corporation (the
"Company"), the subsidiaries of the Company listed on Schedule 2 thereto (collectively, the "Subsidiaries") and each of the PURCHASERS listed on Schedule 1 thereto (collectively,
together with their successors and assigns, the "Purchasers"), as amended by Amendment No. 1 thereto dated as of November 13, 2000, as further amended by Amendment No. 2 thereto
dated as of December 12, 2000, as further amended by Amendment No. 3 thereto dated as of December 19, 2000, as further amended by Amendment No. 4 thereto dated as of
January 4, 2001, and as further amended by Amendment No. 5 thereto dated as of January 9, 2001 (as so amended, the "Agreement"). 

        This
AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT dated as of November 3, 2003 (this "Amendment No. 6") among the Company, the Subsidiaries and each of the Purchasers
is entered into pursuant to Section 9.4 of the Agreement for the purpose of modifying and adding certain provisions of and to the Agreement. Initially capitalized terms used but not otherwise
defined herein shall have the meanings set forth in the Agreement, including Annex A thereto. 

W I T N E S S E T H:  

        WHEREAS, pursuant and subject to the Agreement, the Company has agreed to sell and the Purchasers have the right to purchase shares of the Company's
Series D Convertible Preferred Stock, par value $0.0001 per share (the "Series D Preferred Stock"), with an aggregate liquidation preference of up to $350 million; and 

        WHEREAS,
in connection with the consummation of the transactions contemplated by the Agreement, the Company has entered into the Amended and Restated Stockholders Agreement dated as of
July 17, 2000 by and among the Company and the Stockholder parties thereto (collectively, together with their
successors and assigns, the "Stockholders"), as amended and supplemented from time to time (the "Stockholders Agreement"); and 

        WHEREAS,
in connection with the transactions contemplated by the Agreement, the Company had, as of October 30, 2003, issued 3,145,578 shares of Series D Preferred Stock
with an aggregate liquidation preference of $314,557,800 (of which (i) 3,144,585 shares were issued upon payment of an aggregate cash purchase price of $314,458,500 and (ii) 993 shares
were issued in satisfaction of an aggregate of $99,300 in accumulated interest on the Company's 6% Subordinated Convertible Notes and its 8% Subordinated Convertible Notes); and 

        WHEREAS,
on October 30, 2003, the Company exercised its option to cause the issuance and sale of an additional 354,422 shares of Series D Preferred Stock with an aggregate
liquidation preference of $35,442,200 by making a cash capital call pursuant to and in accordance with the Agreement; and 

        WHEREAS,
the Company desires to issue and sell to the Purchasers, and the Purchasers desire to purchase from the Company, on a pro-rata basis, an additional 993 shares (the
"Additional Shares") of Series D Preferred Stock (with an aggregate liquidation value of $99,300) in exchange for the payment of a cash purchase price of $100 per share (for an aggregate cash
purchase price of $99,300) such that the sum of all cash amounts collected from the Purchasers under the Agreement will equal $350 million; and 

        WHEREAS,
the Company and the Purchasers desire to (a) amend the applicable provisions of the Agreement in order to (i) provide that the Company may issue and sell pursuant
to the Agreement shares of Series D Preferred Stock having an aggregate liquidation value of up to $350.1 million, (ii) provide that each Purchaser's Commitment to purchase the
Additional Shares shall extend until 

1

 

December 31,
2003, (iii) eliminate the Company's obligation to furnish monthly financial statements to the Purchasers and (iv) provide that notices and communications provided for
under the Agreement may be sent by electronic mail and/or electronic mail attachment, (b) amend the applicable provisions of the Amended and Restated Certificate of Designations, Preferences
and Rights relating to the Series D Preferred Stock (the "Certificate of Designations") in order to increase the number of shares of the Company's authorized preferred stock designated as
Series D Preferred Stock from 3,500,000 shares to 4,000,000 shares and (c) amend the applicable provisions of the Stockholders Agreement in order to (i) provide that notices and
communications provided for under the Stockholders Agreement may be sent by electronic mail and/or electronic mail attachment and (ii) provide that each Stockholder will maintain the
confidentiality of any Confidential Information (as defined in the Stockholders Agreement) disclosed to such Stockholder. 

        NOW,
THEREFORE, in consideration of the mutual agreements contained in this Amendment No. 6, the parties hereto agree as follows: 

 
 

ARTICLE I    
    
    AMENDMENTS TO AGREEMENT    
    

        Section A.    Authorized Series D Preferred Stock.    Section 1.1 of the Agreement is hereby
amended to delete the first sentence of such Section 1.1 and replace it with two sentences that read as follows: 

        "The
Company has authorized the issuance and sale of shares of its Series D Preferred Stock with an aggregate liquidation preference of up to $400 million, of which shares
of Series D Preferred Stock with an aggregate liquidation preference of up to $350.1 million may be issued and sold pursuant to this Agreement. Upon the adoption of Amendment
No. 6 to this Agreement, any references in this Agreement to either $350 million or $350,000,000 shall be deemed to have been changed to $350.1 million or $350,100,000,
respectively." 

        Section B.    Duration of Purchaser Commitments.    The last sentence of Section 2.2(m) of the Agreement
(as set forth in Section E(2) of Amendment No. 4 to the Agreement) is hereby amended and restated in its entirety to read as follows: 

"Subject
to the provisions of this Section 2.2 (and except as otherwise provided below), each Purchaser's Commitment shall remain in full force and effect for three years from the date of the
Subsequent Closing and, to the extent not drawn, shall then terminate; provided, however, that each Purchaser's Commitment to purchase such Purchaser's
pro-rata portion of the Additional Shares (as defined in Amendment No. 6 to this Agreement) shall remain in full force and effect until December 31, 2003; and  provided further, that the
Purchaser Funding Option for each Purchaser shall continue in full force and effect, until such time as the Purchaser
notifies the Company of the termination of its Purchaser Funding Option with respect to any remaining unfunded Commitment Amount." 

        Section C.    Quarterly Financial Statements.    Clause (b) of the second sentence of Section 7.3
of the Agreement is hereby amended and restated in its entirety to read as follows: 

"(b)
within 45 days after the end of each of the first three fiscal quarters of each fiscal year (commencing with the quarter ending June 30, 2000), a consolidated unaudited balance
sheet of the Company as at the end of such quarter and a consolidated unaudited statement of income and retained earnings for the Company for such quarter and for the year to date, each of the
foregoing balance sheets and statements of income and retained earnings to set forth in comparative form the corresponding figures of (or, in the case of the balance sheet, as of the end of) the prior
fiscal year." 

2

 

        Section D.    Elimination of Covenant to Furnish Monthly Financials.    The second sentence of
Section 7.3 of the Agreement is hereby amended by deleting the following language originally inserted at the end of such sentence by Section F(l) of Amendment No. 1 to the
Agreement: 

",
and (e) within 30 days after the end of each calendar month commencing with the month of December 2000, a consolidated unaudited balance sheet of the Company as of the end of
such month and an unaudited statement of income and retained earnings for the Company for such month and for the year to date." 

        Section E.    Notices.    Section 9.5 of the Agreement is hereby amended and restated in its entirely to
read as follows: 

        "Section 9.5    Notices    

        All
notices and communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a
recognized overnight delivery service (charges prepaid), or (b) by registered or certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight delivery
service (with charges prepaid), or (d) by electronic mail transmission (including without limitation electronic mail attachment). Any such notice or communication must be sent as follows: 

        if
to the Purchasers: 

to
the respective mailing addresses, telecopy numbers and/or email addresses for notice as set forth in the books and records of the Company, 

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

Mayer,
Brown, Rowe & Maw LLP

1675 Broadway

New York, New York 10019

Attention: Kathleen A. Walsh

Telephone: (212) 506-2553

Telecopy: (212) 262-1910

email: kwalsh@mayerbrown.com 

        if
to the Company, to: 

MetroPCS, Inc.

8144 Walnut Hill Lane

Suite 800

Dallas, Texas 75231

Attention: Dennis G. Spickler, Chief Financial Officer

Telephone: (214) 265-2550

Telecopy: (214) 265-2570

email: dspickler@metropcs.com 

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

Andrews
Kurth LLP

600 Travis Street

Suite 4200

Houston, Texas 77002

Attention: Henry Havre

Telephone: (713) 220-4200

Telecopy: (713) 220-4285

email: henryhavre@andrewskurth.com 

3

 

        Notices
under this Section 9.5 will be deemed given only when actually received. Each party may, by notice given hereunder, designate a different address, telecopy number and/or
email address to which subsequent notices and communications shall be sent." 

        Section F.    Amendment to Stockholders Agreement.    A form of Amendment No. 3 to the Company's Amended
and Restated Stockholders Agreement dated as of July 17, 2000 is attached to this Amendment No. 6 as Exhibit A. The definition of
"Stockholders Agreement" as set forth in Annex A to the Agreement is hereby deleted and replaced in its entirety with the following: 

"'Stockholders
Agreement' means the Company's Amended and Restated Stockholders Agreement, dated as of July 17, 2000, as amended by (i) Amendment No. 1 thereto dated as of
November 13, 2000, (ii) Amendment No. 2 thereto dated as of January 4, 2001, and (iii) Amendment No. 3 thereto dated as of November 3, 2003, and as the
same may be further amended or supplemented from time to time." 

        Section G.    Effectiveness of Amendment No. 6.    If the requisite percentage of Purchasers agree to
and execute this Amendment No. 6 pursuant to the Agreement, then this Amendment No. 6 shall become effective upon the filing of an amendment to the Sixth Amended and Restated Certificate
of Incorporation that provides for an increase in the number of shares of the Company's authorized preferred stock designated as Series D Preferred Stock from 3,500,000 shares to 4,000,000
shares. Notwithstanding any provision to the contrary in the Agreement or this Amendment No. 6, until the preceding conditions have been satisfied, this Amendment No. 6 shall not become
effective. 

 
 

ARTICLE II    
    
    MISCELLANEOUS    
    

        Section A.    Ratification & Conflicts.    The Agreement as supplemented by this Amendment No. 6
is ratified and confirmed, and shall remain in full force and effect. In the event of any conflict between the terms of the Agreement and this Amendment No. 6, the terms and provisions of this
Amendment No. 6 shall govern and control. 

        Section B.    Governing Law.    THIS AMENDMENT NO. 6 SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH, AND
ENFORCED UNDER, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED ENTIRELY WITHIN SUCH STATE. 

        Section C.    Further Assurances.    Each of the parties covenants and agrees to take all such actions and to
execute all such documents as may be necessary or advisable to implement the provisions of this Amendment No. 6 fully and effectively and to make them binding on the parties hereto. 

        Section D.    Counterparts.    This Amendment No. 6 may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by
all, of the parties hereto. 

[SIGNATURE
PAGES FOLLOW] 

4

        IN WITNESS WHEREOF, this AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT has been executed by the parties hereto as of the date first set forth above. 

	

 	
 	
MetroPCS, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS Wireless, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS, California/Florida, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS Chico, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
MetroPCS Georgia, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS1, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 

	

 	
 	
GWI PCS2, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS3, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS4, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS5, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS6, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS7, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 

	

 	
 	
GWI PCS8, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS9, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS10, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS11, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS12, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS13, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 

	

 	
 	
GWI PCS14, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
Reauction, Inc.
	

 	
 	
By:	

/s/  ROGER D. LINQUIST      
 Roger D. Linquist

President and Chief Executive Officer

[SIGNATURE
PAGES FOR PURCHASERS FOLLOW] 

	

 	
 	

PURCHASERS:
	

 	
 	
Print Name of PURCHASER:
	

 	
 	

	

 	
 	

By:	

 
	 	 	 	

	

 	
 	

Name:	

 
	 	 	 	

	

 	
 	

Title:	

 
	 	 	 	

 
 

EXHIBIT A    
    
    Form of
  Amendment No. 3 to Amended and Restated Stockholders Agreement    
    

(see attached)  

  

 
 

AMENDMENT NO. 7
  TO SECURITIES PURCHASE AGREEMENT    
    
    Dated as of May 19, 2004    
    

        Reference is hereby made to the Securities Purchase Agreement, dated as of July 17, 2000, by and among MetroPCS, Inc., a Delaware corporation
("MetroPCS"), the subsidiaries of MetroPCS listed on Schedule 2 thereto (collectively, the
"Subsidiaries") and each of the Purchaser listed on Schedule 1 thereto (collectively, together with their successors and assigns, the
"Purchasers"), as amended by Amendment No. 1 thereto dated as of November 13, 2000, as further amended by Amendment No. 2 thereto
dated as of December 12, 2000, as further amended by Amendment No. 3 thereto dated as of December 19, 2000, as further amended by Amendment No. 4 thereto dated as of
January 4, 2001, as further amended by Amendment No. 5 thereto dated as of January 9, 2001, as further amended by Amendment No. 6 thereto dated as of November 3,
2003. Such Securities Purchase Agreement, as so amended, is referenced herein as the "Agreement". 

        This
Amendment No. 7 to the Agreement dated as of the date first set forth above (this "Amendment No. 7") among MetroPCS,
the Subsidiaries and each of the Purchasers is entered into pursuant to Section 9.4 of the Agreement for the purpose of modifying and/or adding certain provisions of and to the Agreement.
Capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Agreement, including Annex A thereto. 

        NOW,
THEREFORE, in consideration of the mutual agreements contained in this Amendment No. 7, the parties hereto agree as follows: 

ARTICLE 1 AMENDMENTS TO AGREEMENT  

        Section 1.1    Covenants of the Company.    The introductory sentence appearing immediately before
Section 7.1 of the Agreement is hereby amended and restated in its entirety as follows: 

        "So
long as any shares of Preferred Stock remain issued and outstanding, the Company covenants with the Purchasers as follows:" 

        Section 1.2    Board of Directors.    Section 7.10 of the Agreement is hereby amended and restated in
its entirety to read as follows: 

        "Section 7.10    Board of Directors.    The Company will take no action to increase the size of the Board of
Directors to more than nine (9) directors or to decrease the number of directors which the holders of the Preferred Stock are entitled to nominate, in each case, without the prior written
consent of holders of at least 662/3% of the issued and outstanding shares of Preferred Stock." 

        Section 1.3    Termination.    Article IX of the Agreement is hereby amended by adding the following
Section 9.15 at the end thereof: 

        "Section 9.15    Termination of Certain Provisions upon an Initial Public Equity Offering.    With the
exception of Article IX hereof, the provisions of this Agreement shall terminate and be of no further force or effect upon an Initial Public Equity Offering." 

        Section 1.4    Certain Defined Terms.    

        (a)   The
definition of the terms "Qualified Public Offering" and "Qualifying Public Offering" set forth in Annex A to the Agreement is hereby deleted in its entirety. 

1

 

        (b)   The
definition of the term "Initial Public Equity Offering" set forth in Annex A to the Agreement is hereby amended and restated in its entirety to read as follows: 

        'Initial Public Equity Offering' means a firm commitment underwritten initial sale to the public of common stock of the Company (or a
parent corporation holding all of the issued and outstanding
shares of the capital stock of the Company) by underwriter(s) of national standing pursuant to an effective registration statement under the Securities Act (other than on Form S-8
or any other form relating to securities issuable under any benefit plan of the Company or such parent corporation)." 

        Section 1.5    Effectiveness of Amendment No. 7.    Subject to Section 9.4 of the Agreement, this
Amendment No. 7 shall be effective as of the date first set forth above. 

ARTICLE 2 MISCELLANEOUS  

        Section 2.1    Ratification & Conflicts.    The Agreement as supplemented by this Amendment No. 7
is ratified and confirmed, and shall remain in full force and effect. In the event of any conflict between the terms of the Agreement and this Amendment No. 7, the terms and provisions of this
Amendment No. 7 shall govern and control. 

        Section 2.2    Governing Law.    THIS AMENDMENT NO. 7 SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH, AND
ENFORCED UNDER, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS OR INSTRUMENTS ENTERED INTO AND PERFORMED ENTIRELY WITHIN SUCH STATE. 

        Section 2.3    Further Assurances.    Each of the parties covenants and agrees to take all such actions and to
execute all such documents as may be necessary or advisable to implement the provisions of this Amendment No. 7 fully and effectively and to make them binding on the parties hereto. 

        Section 2.4    Counterparts.    This Amendment No. 7 may be executed in any number of counterparts, each
of which shall be an original but all of which together shall constitute one instrument. Each counterpart may consist of a number of copies hereof, each signed by less than all, but together signed by
all, of the parties hereto. 

Signature Pages Follow

2

        IN WITNESS WHEREOF, this AMENDMENT NO. 7 TO SECURITIES PURCHASE AGREEMENT has been executed by the parties hereto as of the date first set forth above. 

	 	 	METROPCS, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
METROPCS WIRELESS, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
METROPCS, CALIFORNIA/FLORIDA, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
METROPCS CHICO, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
METROPCS GEORGIA, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS1, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS2, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS3, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 

	

 	
 	
GWI PCS4, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS5, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS6, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS7, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS8, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS9, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS10, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS11, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	 	 	 	 	 

	

 	
 	
GWI PCS12, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS13, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
GWI PCS14, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer
	

 	
 	
REAUCTION, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	

	 	 	 	 	Roger D. Linquist

President and Chief Executive Officer

Signature Pages Follow

	 	 	PURCHASERS:
	

 	
 	
Print Name of PURCHASER:
	

 	
 	

 	
 	

 
	 	 	

	

 	
 	

By:	
 	

 
	 	 	 	 	

	

 	
 	

Name:	
 	

 
	 	 	 	 	

	

 	
 	

Title:	
 	

 
	 	 	 	 	

QuickLinks

TABLE OF CONTENTS

W I T N E S S E T H

ARTICLE I SALE AND PURCHASE OF THE SECURITIES

ARTICLE II CLOSINGS

ARTICLE III CONDITIONS TO INITIAL CLOSING

ARTICLE IIIA CONDITIONS TO SUBSEQUENT CLOSING

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE COMPANY

ARTICLE V REPRESENTATIONS AND WARRANTIES OF PURCHASERS

ARTICLE VI PAYMENTS, ETC.

ARTICLE VII COVENANTS OF THE COMPANY

ARTICLE VIII TRANSFER AND EXCHANGE

ARTICLE IX MISCELLANEOUS

Annex A CERTAIN DEFINITIONS

Schedule 1 SCHEDULE OF PURCHASERS

Schedule 2 SCHEDULE OF SUBSIDIARIES

Exhibit A FORM OF CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS RELATING TO THE SERIES D CONVERTIBLE PREFERRED STOCK [Exhibit begins on following page]

Exhibit B FORM OF 6% SUBORDINATED CONVERTIBLE NOTES DUE 2002

Exhibit C FORM OF COMMITMENT LETTER

Exhibit D AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

AMENDMENT NO. 1 TO SECURITIES PURCHASE AGREEMENT dated as of November 13, 2000

W I T N E S S E T H

ARTICLE I AMENDMENTS TO AGREEMENT

ARTICLE II MISCELLANEOUS

Schedule 1

Exhibit A-1 CERTIFICATE OF DESIGNATIONS

Exhibit A-2 SIXTH AMENDED AND RESTATED CERTIFICATE OF INCORPORATION

Exhibit D-1 AMENDMENT NO. 1 TO AMENDED AND RESTATED STOCKHOLDERS AGREEMENT

AMENDMENT NO. 2 TO AMENDMENT NO. 2 TO SECURITIES PURCHASE AGREEMENT dated as of December 12, 2000

W I T N E S S E T H

ARTICLE I AMENDMENTS TO AGREEMENT

ARTICLE II MISCELLANEOUS

AMENDMENT NO. 3 TO SECURITIES PURCHASE AGREEMENT

Schedule 1 THIRD AMENDED AND RESTATED SCHEDULE OF PURCHASERS dated as of December 19, 2000

AMENDMENT NO. 4 TO SECURITIES PURCHASE AGREEMENT dated as of January 4, 2001

W I T N E S S E T H

ARTICLE I AMENDMENTS TO AGREEMENT

ARTICLE II MISCELLANEOUS

AMENDMENT NO. 5 TO SECURITIES PURCHASE AGREEMENT dated as of January 9, 2001

ARTICLE I AMENDMENTS TO AGREEMENT

ARTICLE II MISCELLANEOUS

EXHIBIT A Legal Opinion

AMENDMENT NO. 6 TO SECURITIES PURCHASE AGREEMENT dated as of November 3, 2003

ARTICLE I AMENDMENTS TO AGREEMENT

ARTICLE II MISCELLANEOUS

EXHIBIT A Form of Amendment No. 3 to Amended and Restated Stockholders Agreement

AMENDMENT NO. 7 TO SECURITIES PURCHASE AGREEMENT Dated as of May 19, 2004

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