Exhibit 10.16

AMENDMENT NO. 1

TO

GOVERNANCE AGREEMENT

AMENDMENT NO. 1 TO GOVERNANCE AGREEMENT (this “Amendment”), dated as of July 31,
2007, made among ITC^DeltaCom, Inc., a Delaware corporation (the “Parent”), and
each person listed on the signature pages hereof under the headings “WCAS
Securityholders” and “TCP Securityholders.”

WITNESSETH:

WHEREAS, the parties to this Amendment wish to amend the Amended and Restated
Governance Agreement, dated as of and July 26, 2005 (the “Agreement”), among
Parent, the securityholders of Parent listed on the signature pages thereof and
the other parties to such agreement to facilitate the recapitalization
transactions of Parent to be consummated on the date hereof;

NOW, THEREFORE, in consideration of the premises and the mutual covenants and
conditions hereinafter set forth, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereby
agree as follows:

1. Effectiveness; Capitalized Terms.

(a) This Amendment shall be effective as of the date hereof.

(b) All capitalized terms used in this Amendment and not defined herein have the
meanings ascribed to such terms in the Agreement.

2. Definitions.

(a) Article I of the Agreement is hereby amended by adding, in the appropriate
alphabetical order, the following definitions to such Article I:

“Equity Purchase and Rights Offering Agreement” means the Equity Purchase and
Rights Offering Agreement, dated as of July 16, 2007, among Parent and the other
Persons listed on the signature pages thereof.

“Recapitalization” means, collectively, the transactions relating to the
issuance and sale of Voting Securities and Voting Security Equivalents described
in Exhibit A to the Equity Purchase and Rights Offering Agreement.

“Rights Offering” means a registration under the Securities Act of an offering
of Common Stock and rights to purchase Common Stock on substantially the terms
provided for in the Equity Purchase and Rights Offering Agreement.

“Series H Certificate of Designation” means the certificate of designation of
the Series H Preferred Stock as amended from time to time.

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“Series H Preferred Stock” means the 6% Series H Convertible Redeemable
Preferred Stock, par value $0.01 per share, of Parent.

(b) The last sentence of the definition of “Voting Securities” set forth in
Article I of the Agreement is hereby amended by deleting such last sentence and
substituting in lieu thereof the following sentence:

“For purposes of this definition, each share of Common Stock, each share of
Series A Preferred Stock, each share of Series B Preferred Stock, each share of
Series C Preferred Stock and each share of Series H Preferred Stock shall at all
times be considered Voting Securities.”

3. Subscription Right. Section 3.4(g) of the Agreement is hereby amended by
adding the following sentence at the end thereof:

“In addition, for purposes of this Section 3.4, “Excluded Securities” also means
Voting Securities and Voting Security Equivalents issued or issuable
(a) pursuant to or in connection with the Recapitalization (including, without
limitation, the issuance and sale for cash of Common Stock to certain WCAS
Securityholders and the issuance and sale for cash of the Series H Preferred
Stock), (b) pursuant to the Series H Certificate of Designation in accordance
with the Equity Purchase and Rights Offering Agreement, (c) upon the conversion,
exchange or exercise of the Series H Preferred Stock or (d) pursuant to or in
connection with the Rights Offering.”

4. Miscellaneous. This Amendment shall not constitute an amendment or
modification of any provision of the Agreement not expressly referred to herein.
Except as expressly set forth in this Amendment, the terms, provisions and
conditions of the Agreement shall remain unchanged and in full force and effect.
This Amendment may be executed in counterparts, all of which shall together
constitute a single agreement.

5. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the laws of the State of Delaware without giving effect to
principles of conflicts of law.

[signature pages follow]

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IN WITNESS WHEREOF, the parties have executed this Amendment as of the date set
forth in the first paragraph hereof.

 

COMPANY: ITC^DELTACOM, INC. By:  

/s/ Richard E. Fish, Jr.

Name:   Richard E. Fish, Jr. Title:  

Executive Vice President and
Chief Financial Officer

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WCAS SECURITYHOLDERS: WCAS CAPITAL PARTNERS III, L.P. By:   WCAS CP III
Associates L.L.C.,
General Partner By:  

/s/ Jonathan M. Rather

Name:   Jonathan M. Rather Title:   Managing Member WELSH, CARSON, ANDERSON &
STOWE VIII, L.P. By:   WCAS VIII Associates LLC, General Partner By:  

/s/ Jonathan M. Rather

Name:   Jonathan M. Rather Title:   Managing Member WCAS INFORMATION PARTNERS,
L.P. By:  

WCAS Info Partners,

General Partner

By:  

/s/ Jonathan M. Rather

Name:   Jonathan M. Rather Title:   Attorney-in-fact WCAS REPRESENTATIVE

/s/ Thomas H. McInerney

Thomas H. McInerney

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Individual investors and trusts:

By:

 

/s/ Jonathan M. Rather

 

Jonathan M. Rather, as Attorney-in-fact

for the individual investors listed below:

  Patrick J. Welsh   Russell L. Carson   Bruce K. Anderson   Andrew M. Paul  
Thomas E. McInerney   Robert A. Minicucci   Anthony J. de Nicola   Paul B.
Queally   D. Scott Mackesy   Sanjay Swani   James Matthews   Laura VanBuren  
Sean Traynor   John Almeida   Eric J. Lee   Jonathan M. Rather   IRA – f/b/o
James Matthews   IRA f/b/o Jonathan M. Rather

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/s/ Jill A. Hanau

Jill A. Hanau

Other trusts: The Bruce K. Anderson 2004 Irrevocable Trust By:  

/s/ Mary Anderson

Name:  

Mary Anderson

Title:  

Trustee

The Patrick Welsh 2004 Irrevocable Trust By:  

/s/ Carol Welsh

Name:  

Carol Welsh

Title:  

Trustee

Patrick J. Welsh Tr UA 05 09 05 By:  

/s/ Patrick Welsh

Name:  

Patrick Welsh

Title:  

Trustee

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TCP SECURITYHOLDERS: SPECIAL VALUE ABSOLUTE RETURN FUND, LLC By:   Tennenbaum
Capital Partners, LLC Its:   Investment Manager By:  

/s/ Howard M. Levkowitz

Name:   Howard M. Levkowitz Title:   Managing Partner SPECIAL VALUE BOND FUND
II, LLC By:   Tennenbaum Capital Partners, LLC Its:   Investment Manager By:  

/s/ Howard M. Levkowitz

Name:   Howard M. Levkowitz Title:   Managing Partner