PLEDGE AGREEMENT

This PLEDGE AGREEMENT (the Agreement) dated as of _________ __,

2! is entered into "# and "et$een %TEL, &n'(, a De)a$are 'or*oration, (%TEL) and
+&G +AD ,ELL%LAR ,-MPAN., &n'(, a De)a$are 'or*oration (/++,/), $ith
referen'e to the fo))o$ing fa'ts0
A( %TEL and ++, are *arties to the ,ontri"1tion and 2eries A Preferred
2to'3 P1r'hase Agreement dated Mar'h 4, 2! (the ,ontri"1tion Agreement)
*1rs1ant to $hi'h the *arties ha5e agreed to 'ontri"1te 'ertain assets and $or3ing 'a*ita)
to 666 ,omm1ni'ations, &n'(, a De)a$are 'or*oration (666)(
+( P1rs1ant to the terms of the ,ontri"1tion Agreement, %TEL has agreed to
ma3e additiona) 'ontri"1tions to 666 1nti) s1'h time as 'ertain Performan'e ,riteria are
satisfied( %TEL is $i))ing to enter into this Agreement as 'onsideration for and to ind1'e
++, to enter into the ,ontri"1tion Agreement, and ++, is re)#ing 1*on this Agreement
in agreeing to enter into the ,ontri"1tion Agreement(
,( ,a*ita)i7ed terms 1sed herein and not defined herein sha)) ha5e the
meanings assigned to s1'h terms in the ,ontri"1tion Agreement(
A''ording)#, %TEL agrees as fo))o$s0
2E,T&-N !( Pledge( As se'1rit# for the *a#ment and *erforman'e, as
the 'ase ma# "e, in f1)) of the -")igations (as defined "e)o$), %TEL here"# transfers,
grants, "argains, se))s, 'on5e#s, h#*othe'ates, *)edges, sets o5er and de)i5ers 1nto ++,,
its s1''essors and assigns, and here"# grants to ++,, its s1''essors and assigns, a
se'1rit# interest in a)) of %TEL8s right, tit)e and interest in, to and 1nder (a), the shares of
'a*ita) sto'3 or other e91it# interests of 666 o$ned "# %TEL and an# shares of 666
o"tained in the f1t1re "# %TEL and the 'ertifi'ates re*resenting a)) s1'h shares,
mem"ershi* interests or other e91it# interests ('o))e'ti5e)#, the /Pledged Stock/): (")
(i) a)) de"t se'1rities iss1ed "# 666 o$ned "# %TEL, (ii) an# de"t se'1rities in the f1t1re
iss1ed to %TEL "# 666 and (iii) the *romissor# notes and an# other instr1ments
e5iden'ing s1'h de"t se'1rities (the /Pledged Debt Securities/): (') a)) other *ro*ert# that
ma# "e de)i5ered to and he)d "# ++, *1rs1ant to the terms hereof: (d) s1";e't to
2e'tion <, a)) *a#ments of *rin'i*a) or interest, di5idends, 'ash, instr1ments and other
*ro*ert# from time to time re'ei5ed, re'ei5a")e or other$ise distri"1ted, in res*e't of, in
e='hange for or 1*on the 'on5ersion of the se'1rities referred to in ')a1ses (a) and (")
a"o5e: (e) s1";e't to 2e'tion <, a)) rights and *ri5i)eges of %TEL $ith res*e't to the
se'1rities and other *ro*ert# referred to in ')a1ses (a), ("), (') and (d) a"o5e: and (f) a))
*ro'eeds of an# of the foregoing (the items referred to in ')a1ses (a) thro1gh (f) a"o5e
"eing 'o))e'ti5e)# referred to as the /Collateral/)( %*on de)i5er# to ++,, (a) an# sto'3
'ertifi'ates, notes or other se'1rities no$ or hereafter in')1ded in the ,o))atera) (the
/Pledged Securities/) sha)) "e a''om*anied "# sto'3 *o$ers d1)# e=e'1ted in ")an3 or
other instr1ments of transfer satisfa'tor# to ++, and "# s1'h other instr1ments and
do'1ments as ++, ma# reasona")# re91est in order to gi5e effe't to the *)edge granted
here"# and (") a)) other *ro*ert# 'om*rising *art of the ,o))atera) sha)) "e a''om*anied
"# *ro*er instr1ments of assignment d1)# e=e'1ted "# %TEL and s1'h other instr1ments
or do'1ments as ++, ma# reasona")# re91est in order to gi5e effe't to the *)edge granted
here"#( Ea'h de)i5er# of P)edged 2e'1rities sha)) "e a''om*anied "# a s'hed1)e
des'ri"ing the se'1rities theretofore and then "eing *)edged here1nder, $hi'h s'hed1)e
sha)) "e atta'hed hereto and made a *art hereof( Ea'h s'hed1)e so de)i5ered sha))
s1*ersede an# *rior s'hed1)es so de)i5ered( -")igations sha)) mean a)) monetar#
o")igations, in')1ding fees, 'osts, e=*enses and indemnities, $hether *rimar#, se'ondar#,
dire't, 'ontingent, fi=ed or other$ise (in')1ding monetar# o")igations in'1rred d1ring the
*enden'# of an# "an3r1*t'#, inso)5en'#, re'ei5ershi* or other simi)ar *ro'eeding, regard>
)ess of $hether a))o$ed or a))o$a")e in s1'h *ro'eeding) of %TEL to 666 1nder the
,ontri"1tion Agreement(
T- ?A@E AND T- ?-LD the ,o))atera), together $ith a)) right, tit)e, interest,
*o$ers, *ri5i)eges and *referen'es *ertaining or in'identa) thereto, 1nto ++,, its
s1''essors and assigns, fore5er: subject, however, to the terms, 'o5enants and 'onditions
hereinafter set forth(
2E,T&-N 2( Delivery of the Collateral( %TEL agrees *rom*t)# to de)i5er or
'a1se to "e de)i5ered to ++, an# and a)) P)edged 2e'1rities and an# and a)) 'ertifi'ates
or other instr1ments or do'1ments re*resenting the ,o))atera)(
2E,T&-N A( Representations, Warranties and Covenants( %TEL here"#
re*resents, $arrants and 'o5enants, as to itse)f and the ,o))atera) *)edged "# it here1nder,
to and $ith ++, that as of the Effe'ti5e Date0
(a) the P)edged 2to'3 re*resents se5ent# *er'ent (BC) of the iss1ed
and o1tstanding shares of 'a*ita) sto'3 of 666:
(") e='e*t for the se'1rit# interest granted here1nder, %TEL (i) is and
$i)) at a)) times 'ontin1e to "e the dire't o$ner, "enefi'ia))# and of re'ord, of the
P)edged 2e'1rities, (ii) ho)ds the same free and ')ear of a)) Liens (as defined
"e)o$), (iii) $i)) ma3e no assignment, *)edge, h#*othe'ation or transfer of, or
'reate or *ermit to e=ist an# se'1rit# interest in or other Lien on, the ,o))atera),
other than *1rs1ant hereto, and (i5) s1";e't to 2e'tion <, $i)) 'a1se an# and a))
,o))atera), $hether for 5a)1e *aid "# %TEL or other$ise, to "e forth$ith
de*osited $ith ++, and *)edged or assigned here1nder:
(') %TEL (i) has the *o$er and a1thorit# to *)edge the ,o))atera) in
the manner here"# done or 'ontem*)ated and (ii) $i)) defend its tit)e or interest
thereto or therein against an# and a)) Liens (other than the Lien 'reated "# this
Agreement), ho$e5er arising, of a)) Persons $homsoe5er:
(d) e='e*t for s1'h 'onsents and a**ro5a)s as ha5e "een o"tained and
are in f1)) for'e and effe't, no 'onsent of an# other Person (in')1ding the
sto'3ho)ders or 'reditors of %TEL) and no 'onsent or a**ro5a) of an#
Go5ernmenta) +od# or an# se'1rities e='hange $as or is ne'essar# to the 5a)idit#
of the *)edge effe'ted here"#:
2
(e) "# 5irt1e of the e=e'1tion and de)i5er# "# %TEL of this
Agreement, $hen the P)edged 2e'1rities, 'ertifi'ates or other do'1ments
re*resenting or e5iden'ing the ,o))atera) are de)i5ered to, and 'ontin1e to "e in
the *ossession of, ++, in a''ordan'e $ith this Agreement, ++, $i)) ha5e a 5a)id
and *erfe'ted first )ien 1*on and se'1rit# interest in s1'h P)edged 2e'1rities as
se'1rit# for the *a#ment and *erforman'e of the -")igations:
(f) the *)edge effe'ted here"# is effe'ti5e to 5est in ++, the rights of
++, in the ,o))atera) as set forth herein:
(g) a)) of the P)edged 2to'3 has "een d1)# a1thori7ed and 5a)id)#
iss1ed and is f1))# *aid and nonassessa")e:
(h) a)) information set forth herein re)ating to the P)edged 2to'3 is
a''1rate and 'om*)ete in a)) materia) res*e'ts as of the date hereof(
/Liens/ sha)) mean, $ith res*e't to an# asset, (a) an# mortgage, deed of
tr1st, )ien, *)edge, h#*othe'ation, en'1m"ran'e, 'harge or se'1rit# interest in, on or of
s1'h asset, (") the interest of a 5endor or a )essor 1nder an# 'onditiona) sa)e agreement,
'a*ita) )ease or tit)e retention agreement (or an# finan'ing )ease ha5ing s1"stantia))# the
same e'onomi' effe't as an# of the foregoing) re)ating to s1'h asset and (') in the 'ase of
se'1rities, an# *1r'hase o*tion, 'a)) or simi)ar right of a third *art# $ith res*e't to s1'h
se'1rities(
2E,T&-N D( Registration in Noinee Nae! Denoinations( ++, sha)) ha5e
the right (in its so)e and a"so)1te dis'retion) to ho)d the P)edged 2e'1rities in its o$n
name as *)edgee, the name of its nominee (as *)edgee or as s1">agent) or the name of
%TEL, endorsed or assigned in ")an3 or in fa5or of ++,( %TEL $i)) *rom*t)# gi5e to
++, 'o*ies of an# materia) noti'es or other 'omm1ni'ations re'ei5ed "# it $ith res*e't
to P)edged 2e'1rities registered in the name of %TEL( ++, sha)) at a)) times ha5e the
right to e='hange the 'ertifi'ates re*resenting P)edged 2e'1rities for 'ertifi'ates of
sma))er or )arger denominations for an# *1r*ose 'onsistent $ith this Agreement(
2E,T&-N <( "oting Rights! Dividends and #nterest, etc(
(a) %n)ess and 1nti) an %TEL E5ent of Defa1)t o''1rs 1nder the ,ontri"1tion
Agreement (hereinafter an E5ent of Defa1)t)0
(i) %TEL sha)) "e entit)ed to e=er'ise an# and a)) 5oting andEor other
'onsens1a) rights and *o$ers in1ring to an o$ner of P)edged 2e'1rities or an#
*art thereof for an# *1r*ose 'onsistent $ith the terms of this Agreement(
(ii) ++, sha)) e=e'1te and de)i5er to %TEL, or 'a1se to "e e=e'1ted
and de)i5ered to %TEL, a)) s1'h *ro=ies, *o$ers of attorne# and other instr1ments
as %TEL ma# reasona")# re91est for the *1r*ose of ena")ing %TEL to e=er'ise
the 5oting andEor 'onsens1a) rights and *o$ers it is entit)ed to e=er'ise *1rs1ant
to s1"*aragra*h (i) a"o5e and to re'ei5e the 'ash di5idends it is entit)ed to re'ei5e
*1rs1ant to s1"*aragra*h (iii) "e)o$(
A
(iii) %TEL sha)) "e entit)ed to re'ei5e and retain an# and a)) 'ash
di5idends, interest and *rin'i*a) *aid on the P)edged 2e'1rities to the e=tent and
on)# to the e=tent that s1'h 'ash di5idends, interest and *rin'i*a) are *ermitted "#,
and other$ise *aid in a''ordan'e $ith, a**)i'a")e )a$s( %*on an E5ent of
Defa1)t, a)) non'ash di5idends, interest and *rin'i*a), and a)) di5idends, interest
and *rin'i*a) *aid or *a#a")e in 'ash or other$ise in 'onne'tion $ith a *artia) or
tota) )i91idation or disso)1tion, ret1rn of 'a*ita), 'a*ita) s1r*)1s or *aid>in s1r*)1s,
and a)) other distri"1tions (other than distri"1tions referred to in the *re'eding
senten'e) made on or in res*e't of the P)edged 2e'1rities, $hether *aid or *a#a")e
in 'ash or other$ise, $hether res1)ting from a s1"di5ision, 'om"ination or
re')assifi'ation of the o1tstanding 'a*ita) sto'3 of the iss1er of an# P)edged
2e'1rities or re'ei5ed in e='hange for P)edged 2e'1rities or an# *art thereof, or in
redem*tion thereof, or as a res1)t of an# merger, 'onso)idation, a'91isition or
other e='hange of assets to $hi'h s1'h iss1er ma# "e a *art# or other$ise, sha))
"e and "e'ome *art of the ,o))atera), and, if re'ei5ed "# %TEL, sha)) not "e
'omming)ed "# %TEL $ith an# of its other f1nds or *ro*ert# "1t sha)) "e he)d
se*arate and a*art therefrom, sha)) "e he)d in tr1st for the "enefit of ++, and
sha)) "e forth$ith de)i5ered to ++, in the same form as so re'ei5ed ($ith an#
ne'essar# endorsement)(
(") %*on an E5ent of Defa1)t, a)) rights of %TEL to di5idends, interest or
*rin'i*a) that %TEL is a1thori7ed to re'ei5e *1rs1ant to *aragra*h (a)(iii) a"o5e sha))
'ease, and a)) s1'h rights sha)) there1*on "e'ome 5ested in ++,, $hi'h sha)) ha5e the
so)e and e=')1si5e right and a1thorit# to re'ei5e and retain s1'h di5idends, interest or
*rin'i*a)( A)) di5idends, interest or *rin'i*a) re'ei5ed "# %TEL 'ontrar# to the
*ro5isions of this 2e'tion < sha)) "e he)d in tr1st for the "enefit of ++,, sha)) "e
segregated from other *ro*ert# or f1nds of %TEL and sha)) "e forth$ith de)i5ered to
++, 1*on demand in the same form as so re'ei5ed ($ith an# ne'essar# endorsement)(
(') %*on an E5ent of Defa1)t, a)) rights of %TEL to e=er'ise the 5oting and
'onsens1a) rights and *o$ers it is entit)ed to e=er'ise *1rs1ant to *aragra*h (a)(i) of this
2e'tion <, and the o")igations of ++, 1nder *aragra*h (a)(ii) of this 2e'tion <, sha))
'ease, and a)) s1'h rights sha)) there1*on "e'ome 5ested in ++,, $hi'h sha)) ha5e the
so)e and e=')1si5e right and a1thorit# to e=er'ise s1'h 5oting and 'onsens1a) rights and
*o$ers in a manner not in'onsistent $ith the terms of this Agreement(
2E,T&-N F( Reedies upon Default( %*on an E5ent of Defa1)t, s1";e't to
a**)i'a")e reg1)ator# and )ega) re91irements, ++, ma# se)) the ,o))atera), or an# *art
thereof, at *1")i' or *ri5ate sa)e or at an# "ro3er8s "oard or on an# se'1rities e='hange,
for 'ash, 1*on 'redit or for f1t1re de)i5er# as ++, sha)) deem a**ro*r&ATe s1";e't to
a**)i'a")e )a$ and standards of 'ommer'ia) reasona")eness( ++, sha)) "e a1thori7ed at
an# s1'h sa)e (if it deems it ad5isa")e to do so) to restri't the *ros*e'ti5e "idders or
*1r'hasers to Persons $ho $i)) re*resent and agree that the# are *1r'hasing the ,o))atera)
for their o$n a''o1nt for in5estment and not $ith a 5ie$ to the distri"1tion or sa)e
thereof, and 1*on 'ons1mmation of an# s1'h sa)e ++, sha)) ha5e the right to assign,
transfer and de)i5er to the *1r'haser or *1r'hasers thereof the ,o))atera) so so)d( Ea'h
s1'h *1r'haser at an# s1'h sa)e sha)) ho)d the *ro*ert# so)d a"so)1te)# free from an#
D
')aim or right on the *art of %TEL, and, to the e=tent *ermitted "# a**)i'a")e )a$, %TEL
here"# $ai5es a)) rights of redem*tion, sta#, 5a)1ation and a**raisa) %TEL no$ has or
ma# at an# time in the f1t1re ha5e 1nder an# r1)e of )a$ or stat1te no$ e=isting or
hereafter ena'ted(
++, sha)) gi5e %TEL ! da#s8 *rior $ritten noti'e ($hi'h %TEL agrees is
reasona")e noti'e $ithin the meaning of 2e'tion 4><D(A) of the %niform ,ommer'ia)
,ode as in effe't in the 2tate of ,a)ifornia as of the date of the ,ontri"1tion Agreement
or its e91i5a)ent in other ;1risdi'tions) of ++,8s intention to ma3e an# sa)e of %TEL8s
,o))atera)( 21'h noti'e, in the 'ase of a *1")i' sa)e, sha)) state the time and *)a'e for s1'h
sa)e and, in the 'ase of a sa)e at a "ro3er8s "oard or on a se'1rities e='hange, sha)) state
the "oard or e='hange at $hi'h s1'h sa)e is to "e made and the da# on $hi'h the
,o))atera), or *ortion thereof, $i)) first "e offered for sa)e at s1'h "oard or e='hange(
An# s1'h *1")i' sa)e sha)) "e he)d at s1'h time or times $ithin ordinar# "1siness ho1rs
and at s1'h *)a'e or *)a'es as ++, ma# fi= and state in the noti'e of s1'h sa)e( At an#
s1'h sa)e, the ,o))atera), or *ortion thereof, to "e so)d ma# "e so)d in one )ot as an
entiret# or in se*arate *ar'e)s, as ++, ma# (in its so)e and a"so)1te dis'retion)
determine( ++, sha)) not "e o")igated to ma3e an# sa)e of an# ,o))atera) if it sha))
determine not to do so, regard)ess of the fa't that noti'e of sa)e of s1'h ,o))atera) sha))
ha5e "een gi5en( ++, ma#, $itho1t noti'e or *1")i'ation, ad;o1rn an# *1")i' or *ri5ate
sa)e or 'a1se the same to "e ad;o1rned from time to time "# anno1n'ement at the time
and *)a'e fi=ed for sa)e, and s1'h sa)e ma#, $itho1t f1rther noti'e, "e made at the time
and *)a'e to $hi'h the same $as so ad;o1rned( &n 'ase an# sa)e of a)) or an# *art of the
,o))atera) is made on 'redit or for f1t1re de)i5er#, the ,o))atera) so so)d ma# "e retained
"# ++, 1nti) the sa)e *ri'e is *aid in f1)) "# the *1r'haser or *1r'hasers thereof, "1t ++,
sha)) not in'1r an# )ia"i)it# in 'ase an# s1'h *1r'haser or *1r'hasers sha)) fai) to ta3e 1*
and *a# for the ,o))atera) so so)d and, in 'ase of an# s1'h fai)1re, s1'h ,o))atera) ma# "e
so)d again 1*on )i3e noti'e( At an# *1")i' (or, to the e=tent *ermitted "# a**)i'a")e )a$,
*ri5ate) sa)e made *1rs1ant to this 2e'tion F, ++, ma# "id for or *1r'hase, free from an#
right of redem*tion, sta# or a**raisa) on the *art of %TEL (a)) said rights "eing a)so
here"# $ai5ed and re)eased), the ,o))atera) or an# *art thereof offered for sa)e( Gor *1r>
*oses hereof, (a) a $ritten agreement to *1r'hase the ,o))atera) or an# *ortion thereof
sha)) "e treated as a sa)e thereof, (") ++, sha)) "e free to 'arr# o1t s1'h sa)e *1rs1ant to
s1'h agreement and (') %TEL sha)) not "e entit)ed to the ret1rn of the ,o))atera) or an#
*ortion thereof s1";e't thereto, not$ithstanding the fa't that after ++, sha)) ha5e entered
into s1'h an agreement the -")igations sha)) ha5e "een *aid in f1))( As an a)ternati5e to
e=er'ising the *o$er of sa)e herein 'onferred 1*on it, ++, ma# *ro'eed "# a s1it or s1its
at )a$ or in e91it# to fore')ose 1*on the ,o))atera) and to se)) the ,o))atera) or an#
*ortion thereof *1rs1ant to a ;1dgment or de'ree of a 'o1rt or 'o1rts ha5ing 'om*etent
;1risdi'tion or *1rs1ant to a *ro'eeding "# a 'o1rt>a**ointed re'ei5er( An# sa)e *1rs1ant
to the *ro5isions of this 2e'tion F sha)) "e deemed to 'onform to the 'ommer'ia))#
reasona")e standards as *ro5ided in 2e'tion 4><D(A) of the %niform ,ommer'ia) ,ode
as in effe't in the 2tate of ,a)ifornia as of the date of the ,ontri"1tion Agreement or its
e91i5a)ent in other ;1risdi'tions(
<
2E,T&-N B( $pplication of Proceeds of Sale( The *ro'eeds of an# sa)e of
,o))atera) *1rs1ant to 2e'tion F, as $e)) as an# ,o))atera) 'onsisting of 'ash, sha)) "e
a**)ied *rom*t)# "# ++, after re'ei*t thereof in the fo))o$ing order of *riorit#0
G&R2T, to the *a#ment of a)) 'osts and e=*enses in'1rred "# ++, in
'onne'tion $ith the ,ontri"1tion Agreement or the -")igations, in')1ding a)) 'o1rt 'osts
and the fees and e=*enses of its agents and )ega) 'o1nse), the re*a#ment of a)) ad5an'es
made "# ++, on "eha)f of %TEL and an# other 'osts and e=*enses in'1rred in
'onne'tion $ith the e=er'ise of an# right or remed# here1nder or 1nder the ,ontri"1tion
Agreement:
2E,-ND, to ++,, the amo1nt $hi'h is the greater of (i) the 91otient of
(a) the amo1nt of the remaining *ro'eeds of the sa)e di5ided "# (") ++,8s e91it#
*er'entage o$nershi* of the ,om*an# (on a f1))# 'on5erted "asis) as of the date of s1'h
sa)e or (ii) the amo1nt of HA,B!2,DB: and
T?&RD, the "a)an'e, if an#, to %TEL or its s1''essors and assigns, or s1'h
other Person or Persons as sha)) "e entit)ed thereto, or as a 'o1rt of 'om*etent ;1risdi'tion
ma# other$ise dire't(
%*on an# sa)e of the ,o))atera) "# ++, (in')1ding *1rs1ant to a *o$er of sa)e
granted "# stat1te or 1nder a ;1di'ia) *ro'eeding), the re'ei*t of the *1r'hase mone# "#
++, or of the offi'er ma3ing the sa)e sha)) "e a s1ffi'ient dis'harge to the *1r'haser or
*1r'hasers of the ,o))atera) so so)d and s1'h *1r'haser or *1r'hasers sha)) not "e
o")igated to see to the a**)i'ation of an# *art of the *1r'hase mone# *aid o5er to ++, or
s1'h offi'er or "e ans$era")e in an# $a# for the misa**)i'ation thereof(
2E,T&-N I( Reiburseent of %%C(
(a) %TEL agrees to *a# 1*on demand to ++, the amo1nt of an# and a))
reasona")e e=*enses, in')1ding the reasona")e fees, other 'harges and dis"1rsements of
its 'o1nse) and of an# e=*erts or agents, that ++, ma# in'1r in 'onne'tion $ith (i) the
administration of this Agreement, (ii) the '1stod# or *reser5ation of, or the sa)e of,
'o))e'tion from, or other rea)i7ation 1*on, an# of the ,o))atera), (iii) the e=er'ise or
enfor'ement of an# of the rights of ++, here1nder or (i5) the fai)1re "# %TEL to
*erform or o"ser5e an# of the *ro5isions hereof(
(") Jitho1t )imitation of its indemnifi'ation o")igations 1nder the
,ontri"1tion Agreement, %TEL agrees to indemnif# ++, and the other &ndemnitees
against, and ho)d ea'h &ndemnitee harm)ess from, an# and a)) )osses, ')aims, damages,
)ia"i)ities and re)ated e=*enses, in')1ding reasona")e 'o1nse) fees, other 'harges and
dis"1rsements, in'1rred "# or asserted against an# &ndemnitee arising o1t of, in an# $a#
'onne'ted $ith, or as a res1)t of (i) the e=e'1tion or de)i5er# of this Agreement or an#
agreement or instr1ment 'ontem*)ated here"# or there"#, the *erforman'e "# the *arties
hereto of their res*e'ti5e o")igations there1nder or the 'ons1mmation of the transa'tions
'ontem*)ated here"# or (ii) an# ')aim, )itigation, in5estigation or *ro'eeding re)ating to
an# of the foregoing, $hether or not an# &ndemnitee is a *art# thereto, provided that s1'h
F
indemnit# sha)) not, as to an# &ndemnitee, "e a5ai)a")e to the e=tent that s1'h )osses,
')aims, damages, )ia"i)ities or re)ated e=*enses ha5e res1)ted from the gross neg)igen'e or
$i)f1) mis'ond1't of s1'h &ndemnitee(
(') An# amo1nts *a#a")e as *ro5ided here1nder sha)) "e additiona)
-")igations se'1red here"#( The *ro5isions of this 2e'tion I sha)) remain o*erati5e and
in f1)) for'e and effe't regard)ess of the termination of this Agreement or the ,ontri"1tion
Agreement, the 'ons1mmation of the transa'tions 'ontem*)ated here"#, the re*a#ment of
an# of the -")igations, the in5a)idit# or 1nenfor'ea"i)it# of an# term or *ro5ision of this
Agreement or an# of the ,ontri"1tion Agreement or an# in5estigation made "# or on
"eha)f of ++, or an# other ++,( A)) amo1nts d1e 1nder this 2e'tion I sha)) "e *a#a")e
on $ritten demand therefore and, if not *aid $ithin fi5e +1siness Da#s after $ritten
demand for *a#ment is re'ei5ed "# %TEL from ++,, sha)) "ear interest at the rate of
se5en *er'ent (BC) *er ann1m(
2E,T&-N 4( %%C $ppointed $ttorney&in&'act( %TEL here"# a**oints ++,,
effe'ti5e 1*on an E5ent of Defa1)t, the attorne#>in>fa't of %TEL for the *1r*ose of
'arr#ing o1t the *ro5isions of this Agreement and ta3ing an# a'tion and e=e'1ting an#
instr1ment that ++, ma# deem ne'essar# or ad5isa")e to a''om*)ish the *1r*oses
hereof, $hi'h a**ointment is irre5o'a")e and 'o1*)ed $ith an interest( Jitho1t )imiting
the genera)it# of the foregoing, ++, sha)) ha5e the right, 1*on an E5ent of Defa1)t, $ith
f1)) *o$er of s1"stit1tion either in ++,8s name or in the name of %TEL, to as3 for,
demand, s1e for, 'o))e't, re'ei5e and gi5e a'91ittan'e for an# and a)) mone#s d1e or to
"e'ome d1e 1nder and "# 5irt1e of an# ,o))atera), to endorse 'he'3s, drafts, orders and
other instr1ments for the *a#ment of mone# *a#a")e to %TEL re*resenting an# interest or
di5idend or other distri"1tion *a#a")e in res*e't of the ,o))atera) or an# *art thereof or on
a''o1nt thereof and to gi5e f1)) dis'harge for the same, to sett)e, 'om*romise, *rose'1te
or defend an# a'tion, ')aim or *ro'eeding $ith res*e't thereto, and to se)), assign,
endorse, *)edge, transfer and to ma3e an# agreement res*e'ting, or other$ise dea) $ith,
the same, in ea'h 'ase in a manner not in'onsistent $ith the terms of this Agreement:
provided, however, that nothing herein 'ontained sha)) "e 'onstr1ed as re91iring or
o")igating ++, to ma3e an# 'ommitment or to ma3e an# in91ir# as to the nat1re or
s1ffi'ien'# of an# *a#ment re'ei5ed "# ++,, or to *resent or fi)e an# ')aim or noti'e, or
to ta3e an# a'tion $ith res*e't to the ,o))atera) or an# *art thereof or the mone#s d1e or
to "e'ome d1e in res*e't thereof or an# *ro*ert# 'o5ered there"#( ++, sha)) "e
a''o1nta")e on)# for amo1nts a't1a))# re'ei5ed as a res1)t of the e=er'ise of the *o$ers
granted to them herein, and neither the# nor their offi'ers, dire'tors, em*)o#ees or agents
sha)) "e res*onsi")e to %TEL for an# a't or fai)1re to a't here1nder, e='e*t for their o$n
gross neg)igen'e or $i)f1) mis'ond1't(
2E,T&-N !( Waivers! $endent(
(a) No fai)1re or de)a# of ++, in e=er'ising an# *o$er or right here1nder
sha)) o*erate as a $ai5er thereof, nor sha)) an# sing)e or *artia) e=er'ise of an# s1'h right
or *o$er, or an# a"andonment or dis'ontin1an'e of ste*s to enfor'e s1'h a right or
*o$er, *re')1de an# other or f1rther e=er'ise thereof or the e=er'ise of an# other right or
*o$er( The rights and remedies of ++, here1nder and the ,ontri"1tion Agreement are
B
'1m1)ati5e and are not e=')1si5e of an# rights or remedies that the# $o1)d other$ise
ha5e( No $ai5er of an# *ro5isions of this Agreement or 'onsent to an# de*art1re "#
%TEL therefrom sha)) in an# e5ent "e effe'ti5e 1n)ess the same sha)) "e *ermitted "#
*aragra*h (") "e)o$, and then s1'h $ai5er or 'onsent sha)) "e effe'ti5e on)# in the
s*e'ifi' instan'e and for the *1r*ose for $hi'h gi5en( No noti'e or demand on %TEL in
an# 'ase sha)) entit)e %TEL to an# other or f1rther noti'e or demand in simi)ar or other
'ir'1mstan'es(
(") Neither this Agreement nor an# *ro5ision hereof ma# "e $ai5ed, amended
or modified e='e*t *1rs1ant to a $ritten agreement entered into "et$een ++, and
%TEL(
2E,T&-N !!( Securities $ct, etc( &n 5ie$ of the *osition of %TEL in re)ation to
the P)edged 2e'1rities, or "e'a1se of other '1rrent or f1t1re 'ir'1mstan'es, a 91estion
ma# arise 1nder the 2e'1rities A't of !4AA, as no$ or hereafter in effe't, or an# simi)ar
stat1te hereafter ena'ted ana)ogo1s in *1r*ose or effe't (s1'h A't and an# s1'h simi)ar
stat1te as from time to time in effe't "eing 'a))ed the /'ederal Securities (aws/) $ith
res*e't to an# dis*osition of the P)edged 2e'1rities *ermitted here1nder( %TEL
1nderstands that 'om*)ian'e $ith the Gedera) 2e'1rities La$s might 5er# stri't)# )imit the
'o1rse of 'ond1't of ++, if ++, $ere to attem*t to dis*ose of a)) or an# *art of the
P)edged 2e'1rities, and might a)so )imit the e=tent to $hi'h or the manner in $hi'h an#
s1"se91ent transferee of an# P)edged 2e'1rities 'o1)d dis*ose of the same( 2imi)ar)#,
there ma# "e other )ega) restri'tions or )imitations affe'ting ++, in an# attem*t to
dis*ose of a)) or *art of the P)edged 2e'1rities 1nder a**)i'a")e +)1e 23# or other state
se'1rities )a$s or simi)ar )a$s ana)ogo1s in *1r*ose or effe't( %TEL re'ogni7es that in
)ight of s1'h restri'tions and )imitations ++, ma#, $ith res*e't to an# sa)e of the P)edged
2e'1rities, )imit the *1r'hasers to those $ho $i)) agree, among other things, to a'91ire
s1'h P)edged 2e'1rities for their o$n a''o1nt, for in5estment, and not $ith a 5ie$ to the
distri"1tion or resa)e thereof( %TEL a'3no$)edges and agrees that in )ight of s1'h
restri'tions and )imitations, ++,, in its so)e and a"so)1te dis'retion, (a) ma# *ro'eed to
ma3e s1'h a sa)e $hether or not a registration statement for the *1r*ose of registering
s1'h P)edged 2e'1rities or *art thereof sha)) ha5e "een fi)ed 1nder the Gedera) 2e'1rities
La$s and (") ma# a**roa'h and negotiate $ith a sing)e *otentia) *1r'haser to effe't s1'h
sa)e( %TEL a'3no$)edges and agrees that an# s1'h sa)e might res1)t in *ri'es and other
terms )ess fa5ora")e to the se))er than if s1'h sa)e $ere a *1")i' sa)e $itho1t s1'h
restri'tions( &n the e5ent of an# s1'h sa)e, ++, sha)) in'1r no res*onsi"i)it# or )ia"i)it#
for se))ing a)) or an# *art of the P)edged 2e'1rities at a *ri'e that ++,, in its so)e and
a"so)1te dis'retion, ma# in good faith deem reasona")e 1nder the 'ir'1mstan'es,
not$ithstanding the *ossi"i)it# that a s1"stantia))# higher *ri'e might ha5e "een rea)i7ed
if the sa)e $ere deferred 1nti) after registration as aforesaid or if more than a sing)e
*1r'haser $ere a**roa'hed( The *ro5isions of this 2e'tion !! $i)) a**)# not$ithstanding
the e=isten'e of a *1")i' or *ri5ate mar3et 1*on $hi'h the 91otations or sa)es *ri'es ma#
e='eed s1"stantia))# the *ri'e at $hi'h ++, se))s(
2E,T&-N !2( Security #nterest $bsolute( A)) rights of ++, here1nder, the grant
of a se'1rit# interest in the ,o))atera) and a)) o")igations of %TEL here1nder, sha)) "e
a"so)1te and 1n'onditiona) irres*e'ti5e of (a) an# )a'3 of 5a)idit# or enfor'ea"i)it# of the
,ontri"1tion Agreement, an# agreement $ith res*e't to an# of the -")igations or an#
I
other agreement or instr1ment re)ating to an# of the foregoing, (") an# 'hange in the
time, manner or *)a'e of *a#ment of, or in an# other term of, a)) or an# of the
-")igations, or an# other amendment or $ai5er of or an# 'onsent to an# de*art1re from
the ,ontri"1tion Agreement or an# other agreement or instr1ment re)ating to an# of the
foregoing, (') an# e='hange, re)ease or non*erfe'tion of an# other 'o))atera), or an#
re)ease or amendment or $ai5er of or 'onsent to or de*art1re from an# g1arant#, for a))
or an# of the -")igations or (d) an# other 'ir'1mstan'e that might other$ise 'onstit1te a
defense a5ai)a")e to, or a dis'harge of, %TEL in res*e't of the -")igations or in res*e't of
this Agreement (other than the indefeasi")e *a#ment in f1)) of a)) the -")igations)(
2E,T&-N !A( )erination or Release(
(a) This Agreement and the se'1rit# interests granted here"# sha)) terminate
$hen a)) the -")igations ha5e "een indefeasi")# *aid in f1))(
(") &n 'onne'tion $ith an# termination or re)ease *1rs1ant to *aragra*h (a),
++, sha)) e=e'1te and de)i5er to %TEL, at %TELKs e=*ense, a)) do'1ments that %TEL
sha)) reasona")# re91est to e5iden'e s1'h termination or re)ease( An# e=e'1tion and
de)i5er# of do'1ments *1rs1ant to this 2e'tion !A sha)) "e $itho1t re'o1rse to or
$arrant# "# ++,(
2E,T&-N !D( Notices( A)) 'omm1ni'ations and noti'es here1nder sha)) "e in
$riting and gi5en as *ro5ided in 2e'tion !<(A of the ,ontri"1tion Agreement(
2E,T&-N !<( 'urther $ssurances( %TEL agrees to do s1'h f1rther a'ts and
things, and to e=e'1te and de)i5er s1'h additiona) 'on5e#an'es, assignments, agreements
and instr1ments, as ++, ma# at an# time reasona")# re91est in 'onne'tion $ith the
administration and enfor'ement of this Agreement or $ith res*e't to the ,o))atera) or an#
*art thereof or in order "etter to ass1re and 'onfirm 1nto ++, its rights and remedies
here1nder(
2E,T&-N !F( %inding *ffect! Several $greeent! $ssignents( Jhene5er in
this Agreement an# of the *arties hereto is referred to, s1'h referen'e sha)) "e deemed to
in')1de the s1''essors and assigns of s1'h *art#: and a)) 'o5enants, *romises and
agreements "# or on "eha)f of %TEL that are 'ontained in this Agreement sha)) "ind and
in1re to the "enefit of its s1''essors and assigns( This Agreement sha)) "e'ome effe'ti5e
as to %TEL $hen a 'o1nter*art hereof e=e'1ted on "eha)f of %TEL sha)) ha5e "een
de)i5ered to ++, and a 'o1nter*art hereof sha)) ha5e "een e=e'1ted on "eha)f of ++,,
and thereafter sha)) "e "inding 1*on %TEL and ++, and their res*e'ti5e s1''essors and
assigns, and sha)) in1re to the "enefit of %TEL and ++, and their res*e'ti5e s1''essors
and assigns, e='e*t that %TEL sha)) not ha5e the right to assign its rights here1nder or
an# interest herein or in the ,o))atera) (and an# s1'h attem*ted assignment sha)) "e 5oid),
e='e*t as e=*ress)# 'ontem*)ated "# this Agreement or the ,ontri"1tion Agreement(
2E,T&-N !B( Survival of $greeent! Severability(
(a) A)) 'o5enants, agreements, re*resentations and $arranties made "# %TEL
herein and in the 'ertifi'ates or other instr1ments *re*ared or de)i5ered in 'onne'tion
4
$ith or *1rs1ant to this Agreement or the ,ontri"1tion Agreement sha)) "e 'onsidered to
ha5e "een re)ied 1*on "# ++,, regard)ess of an# in5estigation made "# ++, on its
"eha)f, and sha)) 'ontin1e in f1)) for'e and effe't 1nti) this Agreement sha)) terminate(
(") &n the e5ent an# one or more of the *ro5isions 'ontained in this Agreement
sho1)d "e he)d in5a)id, i))ega) or 1nenfor'ea")e in an# res*e't, the 5a)idit#, )ega)it# and
enfor'ea"i)it# of the remaining *ro5isions 'ontained herein sha)) not in an# $a# "e
affe'ted or im*aired there"# (it "eing 1nderstood that the in5a)idit# of a *arti'1)ar
*ro5ision in a *arti'1)ar ;1risdi'tion sha)) not in and of itse)f affe't the 5a)idit# of s1'h
*ro5ision in an# other ;1risdi'tion)( The *arties sha)) endea5or in good>faith negotiations
to re*)a'e the in5a)id, i))ega) or 1nenfor'ea")e *ro5isions $ith 5a)id *ro5isions the
e'onomi' effe't of $hi'h 'omes as ')ose as *ossi")e to that of the in5a)id, i))ega) or
1nenfor'ea")e *ro5isions(
SECTION 18. GOVERNING LAW. THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF CALIFORNIA.
2E,T&-N !4( Counterparts( This Agreement ma# "e e=e'1ted in t$o or more
'o1nter*arts, ea'h of $hi'h sha)) 'onstit1te an origina), "1t a)) of $hi'h, $hen ta3en
together, sha)) 'onstit1te a sing)e 'ontra't, and sha)) "e'ome effe'ti5e as *ro5ided in
2e'tion !F( De)i5er# of an e=e'1ted 'o1nter*art of a signat1re *age to this Agreement "#
fa'simi)e transmission sha)) "e as effe'ti5e as de)i5er# of a man1a))# e=e'1ted
'o1nter*art of this Agreement(
2E,T&-N 2( Section +eadings, 2e'tion headings 1sed herein are for
'on5enien'e of referen'e on)#, are not *art of this Agreement and are not to affe't the
'onstr1'tion of, or to "e ta3en into 'onsideration in inter*reting this Agreement(
2E,T&-N 2!( -urisdiction! Consent to Service of Process(
(a) %TEL here"# irre5o'a")# and 1n'onditiona))# s1"mits, for itse)f and its
*ro*ert#, to the none=')1si5e ;1risdi'tion of an# 'o1rt of 'om*etent ;1risdi'tion sitting in
2an Diego ,o1nt#, and an# a**e))ate 'o1rt from an# thereof, in an# a'tion or *ro'eeding
arising o1t of or re)ating to an# this Agreement or an# of the other Loan Do'1ments, or
for re'ognition or enfor'ement of an# ;1dgment, and ea'h of the *arties hereto here"#
irre5o'a")# and 1n'onditiona))# agrees that a)) ')aims in res*e't of an# s1'h a'tion or
*ro'eeding ma# "e heard and determined in s1'h ,a)ifornia 2tate or, to the e=tent
*ermitted "# )a$, in s1'h Gedera), 'o1rt( Ea'h of the *arties hereto agrees that a fina)
;1dgment in an# s1'h a'tion or *ro'eeding sha)) "e 'on')1si5e and ma# "e enfor'ed in
other ;1risdi'tions "# s1it on the ;1dgment or in an# other manner *ro5ided "# )a$(
Nothing in this Agreement or the ,ontri"1tion Agreement sha)) affe't an# right that ++,
or ma# other$ise ha5e to "ring an# a'tion or *ro'eeding re)ating to this Agreement or the
,ontri"1tion Agreement against %TEL or its *ro*erties in the 'o1rts of an# ;1risdi'tion(
(") %TEL here"# irre5o'a")# and 1n'onditiona))# $ai5es, to the f1))est e=tent
it ma# )ega))# and effe'ti5e)# do so, an# o";e'tion that it ma# no$ or hereafter ha5e to
the )a#ing of 5en1e of an# s1it, a'tion or *ro'eeding arising o1t of or re)ating to this
!
Agreement or the ,ontri"1tion Agreement in an# ,a)ifornia 2tate or Gedera) 'o1rt( Ea'h
of the *arties hereto here"# irre5o'a")# $ai5es, to the f1))est e=tent *ermitted "# )a$, the
defense of an in'on5enient for1m to the maintenan'e of s1'h a'tion or *ro'eeding in an#
s1'h 'o1rt(
(') Ea'h *art# to this Agreement irre5o'a")# 'onsents to ser5i'e of *ro'ess in
the manner *ro5ided for noti'es in 2e'tion !D( Nothing in this Agreement $i)) affe't the
right of an# *art# to this Agreement to ser5e *ro'ess in an# other manner *ermitted "#
)a$(
SECTION 22. WAIVER OF JURY TRIAL. EACH PARTY HERETO
HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT
OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH PARTY
HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEE TO ENFORCE THE FOREGOING WAIVER AND
(B) ACNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.
2E,T&-N 2A( *.ecution of 'inancing Stateents, P1rs1ant to 2e'tion 4>D2 of
the %niform ,ommer'ia) ,ode as in effe't in the 2tate of ,a)ifornia as of the date of the
,ontri"1tion Agreement, %TEL a1thori7es ++, to fi)e finan'ing statements $ith res*e't
to the ,o))atera) o$ned "# it $itho1t the signat1re of %TEL in s1'h form and in s1'h
fi)ing offi'es as ++, reasona")# determines a**ro*riate to *erfe't the se'1rit# interests
of ++, 1nder this Agreement( A 'ar"on, *hotogra*hi' or other re*rod1'tion of this
Agreement sha)) "e s1ffi'ient as a finan'ing statement for fi)ing in an# ;1risdi'tion(
!!
&N J&TNE22 J?ERE-G, the *arties hereto ha5e d1)# e=e'1ted this Agreement
as of the da# and #ear first a"o5e $ritten(
+&G +AD ,ELL%LAR ,-MPAN., &N,(
+#_________________________________
Name0
Tit)e0
%TEL, &N,(
+#_________________________________
Name0
Tit)e0
!2