EXHIBIT 10.2



 Exhibit 10.2 
  
 SECURITIES PURCHASE AGREEMENT 
  

Dated as of July 26, 2005 
  
 by and among 
  
 ITC^DELTACOM, INC. 
  
 as Parent 
  
 INTERSTATE FIBERNET, INC.

  
 as Issuer 
  
 THE SUBSIDIARY GUARANTORS NAMED HEREIN 
  
 as Subsidiary Guarantors 
  
 THE PURCHASERS NAMED HEREIN 
  
 as Purchasers 
  
 TENNENBAUM CAPITAL PARTNERS, LLC 
  
 as Agent 
  
 and 
  
 TCP AGENCY SERVICES, LLC 
  
 as Collateral Agent 







 TABLE OF CONTENTS 
  


					
	 	    	 	  	Page No.


	 ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	  	2
	 Section 1.01
	    	 Certain Defined Terms
	  	2
	 Section 1.02
	    	 Computation of Time Periods; Other Definitional Provisions
	  	25
	 Section 1.03
	    	 Accounting Terms
	  	25
	 ARTICLE II. SECURITIES PURCHASE
	  	26
	 Section 2.01
	    	 Authorization; Purchase and Sale of Securities
	  	26
	 Section 2.02
	    	 Closing
	  	27
	 Section 2.03
	    	 Interest
	  	27
	 Section 2.04
	    	 Fees
	  	28
	 Section 2.05
	    	 Payments and Computations on the Notes
	  	28
	 Section 2.06
	    	 Taxes
	  	29
	 Section 2.07
	    	 Sharing of Payments, Etc.
	  	32
	 Section 2.08
	    	 Prepayments
	  	32
	 Section 2.09
	    	 Prepayment Price Schedule
	  	33
	 Section 2.10
	    	 Registration of Notes
	  	34
	 Section 2.11
	    	 Transfer and Exchange of Notes
	  	34
	 Section 2.12
	    	 Replacement of Notes
	  	35
	 ARTICLE III. CONDITIONS OF SECURITIES PURCHASE
	  	35
	 Section 3.01
	    	 Conditions Precedent to the Closing Date
	  	35
	 ARTICLE IV. REPRESENTATIONS AND WARRANTIES
	  	40
	 Section 4.01
	    	 Representations and Warranties of the Obligors
	  	40
	 Section 4.02
	    	 Representations and Warranties of each Purchaser
	  	50
	 ARTICLE V. COVENANTS
	  	52
	 Section 5.01
	    	 Affirmative Covenants
	  	52
	 Section 5.02
	    	 Negative Covenants
	  	59
	 Section 5.03
	    	 Reporting Requirements
	  	69
	 ARTICLE VI. EVENTS OF DEFAULT
	  	74
	 Section 6.01
	    	 Events of Default
	  	74
	 ARTICLE VII. GUARANTY
	  	78
	 Section 7.01
	    	 Guaranty; Limitation of Liability
	  	78
	 Section 7.02
	    	 Guaranty Absolute
	  	79
	 Section 7.03
	    	 Waivers and Acknowledgments
	  	80
	 Section 7.04
	    	 Subrogation
	  	81
	 Section 7.05
	    	 Guaranty Supplements
	  	82
	 Section 7.06
	    	 Subordination
	  	82
	 Section 7.07
	    	 Continuing Guaranty; Assignments
	  	83
	 Section 7.08
	    	 Release of Guarantor
	  	83
	 ARTICLE VIII. ADDITIONAL POWERS OF AGENTS
	  	83
	 Section 8.01
	    	 Appointment
	  	83
	 Section 8.02
	    	 Rights of Agent
	  	84
	 Section 8.03
	    	 Administration of the Collateral
	  	85
	 Section 8.04
	    	 Application of Proceeds
	  	85

  

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	 Section 8.05
	    	 Duties of Agents
	  	86
	 Section 8.06
	    	 Reliance by Agents
	  	86
	 Section 8.07
	    	 Appointment of Sub-Agents
	  	87
	 Section 8.08
	    	 Resignation of Agents
	  	87
	 Section 8.09
	    	 Purchaser Non-Reliance
	  	87
	 Section 8.10
	    	 Indemnification
	  	88
	 Section 8.11
	    	 Holders
	  	88
	 Section 8.12
	    	 Action by Agents
	  	88
	 ARTICLE IX. CERTAIN PAYMENTS
	  	88
	 Section 9.01
	    	 Pro Rata Treatment
	  	88
	 Section 9.02
	    	 Certain Provisions Regarding Increased Costs
	  	89
	 Section 9.03
	    	 Purchaser Expenses
	  	90
	 ARTICLE X. MISCELLANEOUS
	  	90
	 Section 10.01
	    	 Amendments and Waivers, Etc.
	  	90
	 Section 10.02
	    	 Notices, Etc.
	  	92
	 Section 10.03
	    	 No Waiver; Remedies
	  	93
	 Section 10.04
	    	 Costs and Expenses; Survival
	  	93
	 Section 10.05
	    	 Confidentiality
	  	94
	 Section 10.06
	    	 Severability
	  	95
	 Section 10.07
	    	 Construction
	  	95
	 Section 10.08
	    	 Counterparts
	  	95
	 Section 10.09
	    	 Governing Law
	  	95
	 Section 10.10
	    	 Waiver of Jury Trial
	  	95
	 Section 10.11
	    	 Usury Savings Clause
	  	96
	 Section 10.12
	    	 Right of Set-off
	  	96
	 Section 10.13
	    	 Marshalling; Payments Set Aside
	  	97
	 Section 10.14
	    	 Limitation of Liability
	  	97
	 Section 10.15
	    	 Submission to Jurisdiction; Waivers
	  	97
	 Section 10.16
	    	 Successors and Assigns
	  	98
	 Section 10.17
	    	 Indemnification
	  	98
	 Section 10.18
	    	 Survival of Representations and Warranties; Entire Agreement
	  	99
	 Section 10.19
	    	 Authorization for Intercreditor and Subordination Agreements
	  	99

  

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	 SCHEDULES
	 	 	  	 
			
	 Schedule I
	 	 	  	 Purchasers

	 Schedule II
	 	 	  	 Subsidiary Guarantors

	 Schedule III
	 	 	  	 Intentionally Omitted

	 Schedule IV
	 	 	  	 Competitors

	 Schedule V
	 	 	  	 Restructuring Charges

	 Schedule VI
	 	 	  	 Events of Default

	 Schedule VII
	 	 	  	 Asset Sales

	 Schedule 4.01(a)(ii)
	 	 	  	 Pending Good Standing

	 Schedule 4.01(a)(iii)
	 	 	  	 Pending Licenses, Permits and Other Approvals

	 Schedule 4.01(b)
	 	 	  	 Subsidiaries

	 Schedule 4.01(d)
	 	 	  	 Authorizations, Approvals, Actions, Notices and Filings

	 Schedule 4.01(f)
	 	 	  	 Disclosed Litigation

	 Schedule 4.01(o)
	 	 	  	 Exceptions to Material Adverse Effect/Change

	 Schedule 4.01(p)
	 	 	  	 Plans, Multiemployer Plans and Welfare Plans

	 Schedule 4.01(r)
	 	 	  	 Open Years; Unpaid Tax Liabilities; Adjusted Tax Bases

	 Schedule 4.01(t)
	 	 	  	 Surviving Debt

	 Schedule 4.01(v)
	 	 	  	 Liens

	 Schedule 4.01(w)
	 	 	  	 Owned Real Property

	 Schedule 4.01(x)
	 	 	  	 Leased Real Property

	 Schedule 4.01(y)
	 	 	  	 Investments

	 Schedule 4.01(z)
	 	 	  	 Intellectual Property

	 Schedule 4.01(aa)
	 	 	  	 Material Contracts

	 Schedule 5.02(h)
	 	 	  	 Affiliate Transactions

			
	 EXHIBITS
	 	 	  	 
			
	 Exhibit A-1
	 	-	  	 Form of Note

	 Exhibit A-2
	 	-	  	 Form of Warrant

	 Exhibit B
	 	-	  	 Financial Covenants Certificate

	 Exhibit C
	 	-	  	 Form of Assignment and Acceptance

	 Exhibit D
	 	-	  	 Form of Security Agreement

	 Exhibit E
	 	-	  	 Form of Intercreditor and Subordination Agreements

	 Exhibit F
	 	-	  	 Form of Opinion of Counsel to the Obligors

	 Exhibit G
	 	-	  	 Form of Guaranty Supplement

	 Exhibit H
	 	-	  	 Form of Account Control Agreement

	 Exhibit I
	 	-	  	 Form of Solvency Certificate


  

 iii 








 SECURITIES PURCHASE AGREEMENT 
  
 This SECURITIES PURCHASE AGREEMENT is made and entered into as of July 26, 2005 (this “Agreement”), by
and among ITC^DeltaCom, Inc., a Delaware corporation (the “Parent”), Interstate FiberNet, Inc., a Delaware corporation (the “Issuer”), the subsidiary guarantors listed on the signature page hereof, the banks,
financial institutions and other institutional lenders listed on Schedule I hereto (the “New Purchasers”), Tennenbaum Capital Partners, LLC, a Delaware limited liability company (“TCP”), as agent (together
with any successor agent appointed pursuant to Article VIII, the “Agent”) for the New Purchasers, those certain existing holders under the Original Third Lien Credit Agreement (as defined below) and party hereto (the
“Existing Purchasers”) and TCP Agency Services, LLC, a Delaware limited liability company, as collateral agent (together with any successor collateral agent the “Collateral Agent” and, together with the Agent, the
“Agents”). 
  
 RECITALS: 
  
 WHEREAS, the Parent, the Issuer, the Subsidiary Guarantors, the Existing
Purchasers and WCAS (as defined below), as administrative agent and collateral agent, entered into that certain Credit Agreement, dated as of March 29, 2005 (the “Original Third Lien Credit Agreement”); 
  
 WHEREAS, the parties hereto desire to amend and restate in its entirety the
Original Third Lien Credit Agreement by entering into this Agreement pursuant to which the Issuer shall authorize and issue senior secured notes in the aggregate principal amount equal to the sum of (x) $50,000,000 plus (y) the aggregate
amount of capitalized PIK interest on the Existing Third Lien Notes through the Closing Date (as set forth in Section 2.01(a) hereof) (collectively, the “Notes”) and the Warrants (as defined below) to purchase Series C
Preferred Stock or Common Stock of the Parent; 
  
 WHEREAS,
pursuant to this Agreement, Notes in an aggregate principal amount of $30,000,000 and the Warrants to purchase Series C Preferred Stock or Common Stock of the Parent shall be purchased by the New Purchasers listed on Schedule I hereto, the
proceeds from which are to be used by the Issuer for general working capital purposes; 
  
 WHEREAS, concurrently herewith, pursuant to that certain Exchange Agreement, dated as of even date herewith, by and among WCAS, the Parent, the Issuer and the Subsidiary Guarantors, the Existing Third Lien Notes shall
be exchanged for Notes in the aggregate principal amount equal to the sum of (x) $20,000,000 plus (y) the aggregate amount of capitalized PIK interest on the Existing Third Lien Notes through the Closing Date (the “Exchange
Agreement”); 
  
 WHEREAS, concurrently herewith, the
Parent, the Issuer, the Subsidiary Guarantors, and the Note Purchasers (as defined in the First Lien Note Purchase Agreement) (the “First Lien Lenders”) are entering into that certain Note Purchase Agreement (the “First Lien
Note Purchase Agreement”) pursuant to which the First Lien Lenders shall purchase $209,000,000 in aggregate principal amount of newly-issued secured notes (the “First Lien Notes”) issued by the Issuer, the proceeds of such
First Lien Notes to be used to repay any and 










 
all amounts owing by the Obligors under that certain Third Amended and Restated Credit Agreement, dated as of March 29, 2005, by and among the Parent,
the Issuer, the Subsidiary Guarantors thereunder, the lenders from time to time party thereto and Wells Fargo Bank, N.A., as administrative agent and collateral agent, and for general working capital purposes of the Issuer; 
  
 WHEREAS, the Parent, the Issuer, the Subsidiary Guarantors, and the banks and
financial institutions listed on the signature pages thereof as Lenders and General Electric Capital Corporation, as administrative and collateral agent, entered into that certain Amended and Restated Credit Agreement, dated as of March 29,
2005 (the “Existing Second Lien Credit Agreement”); and 
  
 WHEREAS, the Obligors have requested (a) the consent of the Second Lien Lenders (as defined below) to incur secured indebtedness pursuant to this Agreement and (b) that the Second Lien Lenders agree to amend
and restate the terms of the Existing Second Lien Credit Agreement pursuant to that certain Second Amended and Restated Credit Agreement, dated as of July 26, 2005 (the “Amended Second Lien Credit Agreement”), by and among the
Parent, the Issuer, the Subsidiary Guarantors, the Second Lien Lenders and the “Agents”, under and as defined therein (the “Second Lien Agent”). 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS 
  
 Section 1.01 Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined):

  
 “Account Control Agreement” has the meaning
specified in Section 5.01(r). 
  
 “Additional
Guarantor” has the meaning specified in Section 7.05. 
  
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or officer of such Person.
For purposes of this definition, the term “control” (including the terms “controlling,” “controlled by” and “under common control with”) of a Person means the possession, direct or indirect, of the power to
vote 10% or more of the Voting Stock of such Person or to direct or cause the direction of the management and policies of such Person, whether through the ownership of Voting Stock or Equity Interests, by contract or otherwise. 
  
 “Agent” has the meaning specified in the preamble of this
Agreement. 
  
 “Agents” has the meaning specified
in the preamble of this Agreement. 
  

 2 








 “Agreement” means this Securities Purchase Agreement, dated as of July 26, 2005,
among the Parent, the Issuer, the Purchasers, the Subsidiary Guarantors and the Agent and Collateral Agent, as amended, replaced or refinanced from time to time. 
  
 “Agreement Value” means, for each Hedge Agreement, on any date of determination, an amount determined by
the Agent equal to: (a) in the case of a Hedge Agreement documented pursuant to the Master Agreement (Multicurrency-Cross Border) published by the International Swap and Derivatives Association, Inc. (the “Master Agreement”),
the amount, if any, that would be payable by any Obligor or any of its Subsidiaries to its counterparty to such Hedge Agreement, as if (i) such Hedge Agreement was being terminated early on such date of determination, (ii) such Obligor or
Subsidiary was the sole “Affected Party,” and (iii) the Agent was the sole party determining such payment amount (with the Agent making such determination pursuant to the provisions of the form of Master Agreement); or (b) in the
case of a Hedge Agreement traded on an exchange, the mark-to-market value of such Hedge Agreement, which shall be the unrealized loss on such Hedge Agreement to the Obligor or Subsidiary of an Obligor to such Hedge Agreement determined by the Agent
based on the settlement price of such Hedge Agreement on such date of determination; or (c) in all other cases, the mark-to-market value of such Hedge Agreement, which shall be the unrealized loss on such Hedge Agreement to the Obligor or
Subsidiary of an Obligor to such Hedge Agreement determined by the Agent as the amount, if any, by which (i) the present value of the future cash flows to be paid by such Obligor or Subsidiary exceeds (ii) the present value of the future
cash flows to be received by such Obligor or Subsidiary pursuant to such Hedge Agreement; capitalized terms used and not otherwise defined in this definition shall have the respective meanings set forth in the above described Master Agreement.

  
 “Amended Second Lien Credit Agreement” has
the meaning specified in the recitals of the parties to this Agreement, as amended. 
  
 “Applicable Law” means all laws, rules and regulations applicable to a Person, its property or a transaction, as the case may be, including all applicable common law principles and all provisions of
all applicable United States federal, state, local and foreign constitutions, treatises, codes, statutes, rules, regulations, orders and ordinances of any Governmental Authority; and writs, orders, judgments, injunctions and decrees of all courts
and arbitrators. 
  
 “Applicable Lending Office”
means, with respect to each Purchaser, such Purchaser’s Principal Lending Office. 
  
 “Assigned Agreements” has the meaning specified in the Security Agreement. 
  
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Purchaser and an Eligible Assignee, substantially in the
form of Exhibit C hereto. 
  
 “Bankruptcy
Code” means title 11 of the United States Code, as amended. 
  
 “Benefit Plan Exchange Offer” means any transaction in which the Parent acquires and/or retires Equity Plan Securities in exchange for other Equity Plan Securities. 
  

 3 








 “Board Designees” means individuals whose nomination for election, appointment or
election as directors of the Parent is effectuated pursuant to (a) the Governance Agreement or (b) to the extent applicable from time to time, the Series A Certificate of Designation or the Series B Certificate of Designation. 

 
 “Business Day” means a day of the year on which banks are
not required or authorized by law to close in New York City. 
  
 “BTI” means BTI Telecom Corp., a North Carolina corporation. 
  
 “Capital Expenditures” means, for any Person for any period, the sum of, without duplication, (a) all expenditures made, directly or indirectly, by such Person or any of its Subsidiaries during
such period for equipment, capacity or dark fiber indefeasible rights of use (IRUs), fixed assets, real property or improvements, or for replacements or substitutions therefor or additions thereto, that have been or should be, in accordance with
GAAP, reflected as additions to property, plant or equipment on a Consolidated balance sheet of such Person or have a useful life of more than one year plus (b) the aggregate principal amount of all Debt (including Obligations under Capitalized
Leases) assumed or Incurred in connection with any such expenditures. For purposes of this definition, the purchase price of equipment that is purchased simultaneously with the trade-in of existing equipment or with insurance proceeds shall be
included in Capital Expenditures only to the extent of the gross amount of such purchase price less the credit granted by the seller of such equipment for the equipment being traded in at such time or the amount of such proceeds, as the case may be.

  
 “Capitalized Leases” means all leases that
have been or should be, in accordance with GAAP, recorded as capitalized leases. 
  
 “Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) in equity of such Person,
whether outstanding on the date of this Agreement or issued thereafter, including, without limitation, all Common Stock and Preferred Stock. 
  
 “Cash Equivalents” means any of the following, to the extent owned by the Parent or any of its Subsidiaries free and clear of all Liens
other than Liens created under the Collateral Documents, the Second Lien Loan Documents and the First Lien Documents, and having a maturity of not greater than 360 days from the date of issuance thereof: (a) readily marketable direct
obligations of the Government of the United States or any agency or instrumentality thereof or obligations unconditionally guaranteed by the full faith and credit of the Government of the United States; (b) insured certificates of deposit of or
time deposits with any commercial bank that is a Purchaser or a member of the Federal Reserve System, issues (or the parent of which issues) commercial paper rated as described in clause (c) below, is organized under the laws of the United
States or any State thereof and has combined capital and surplus of at least $1 billion; (c) commercial paper in an aggregate amount of no more than $160,000,000 per issuer outstanding at any time, issued by any corporation organized under the
laws of any State of the United States and rated at least “P-1” (or the then equivalent grade) by Moody’s Investors Service, Inc. or “A-1” (or the then equivalent grade) by Standard & Poor’s, a division of The
McGraw-Hill Companies, Inc.; or (d) obligations issued by any state of the United States of 

  

 4 








 
America or any municipality or other political subdivision of any such state or any public instrumentality thereof having, at the time of acquisition, the
highest rating obtainable from any of Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., Moody’s Investors Service, Inc. or Fitch Ratings, Inc., including, without limitation, auction rate certificates. 

 
 “CERCLA” means the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, as amended from time to time. 
  
 “CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability Information System maintained by the U.S. Environmental Protection Agency. 
  
 “Change of Control” means the occurrence on any date after the Closing Date of any of the following:
(a) a “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) becomes the “beneficial owner” (within the meaning of Rule 13d-3 of the SEC under the Exchange Act) of more than 35%
of the total voting power of the Voting Stock of the Parent on a Fully Diluted Basis and such ownership represents a greater percentage of the total voting power of the Voting Stock of the Parent, on a Fully Diluted Basis, than the percentage of the
total voting power of the Voting Stock of the Parent, on a Fully Diluted Basis, beneficially owned (within the meaning of Rule 13d-3 of the SEC under the Exchange Act) by the Existing Stockholders on such date; provided, however, that
for purposes of calculating the percentage in clause (a) of this definition, any stock of the Parent issued or issuable upon exercise of the Warrants or conversion of the Series C Preferred Stock shall be disregarded; or (b) individuals
who on the Closing Date constitute the board of directors of the Parent (together with any new directors whose appointment by the board of directors of the Parent or whose nomination by the board of directors of the Parent for election by the
Parent’s stockholders was approved by a vote of at least a majority of the members of the board of directors then in office who either were members of the board of directors on the Closing Date or whose appointment or nomination for election
was previously so approved) cease for any reason to constitute a majority of the members of the board of directors then in office; or (c) the Parent shall cease to own 100%, directly, of the Equity Interests of the Issuer and 100%, directly or
indirectly, of the Equity Interests of the other Obligors. For purposes of clause (b) of this definition, all Board Designees shall be deemed to be members of the board of directors of the Parent whose appointment or nomination for election was
approved in the manner specified in clause (b). 
  
 “Chief
Financial Officer” means, with respect to any Obligor, the officer of such Obligor designated by such Obligor as its chief financial officer or, if there is no such officer designation, the officer of such Obligor designated by such Obligor
as its principal accounting officer. 
  
 “Closing” has the meaning specified in Section 2.02. 
  
 “Closing Date” means the date on which the Closing occurs. 
  
 “Closing Date Mortgage Policies” has the meaning specified in Section 3.01(b)(xii). 
  
 “Closing Date Mortgaged Properties” has the meaning
specified in Section 3.01(b)(xii). 
  

 5 








 “Closing Date Mortgages” has the meaning specified in Section 3.01(b)(xv).

  
 “Collateral” means all “Collateral”
referred to in the Collateral Documents and all other property that is or is intended to be subject to any Lien in favor of the Collateral Agent for the benefit of the Secured Parties. 
  
 “Collateral Account” has the meaning specified in the Security Agreement. 
  
 “Collateral Agent” has the meaning specified in the preamble
of this Agreement. 
  
 “Collateral Documents”
means the Security Agreement, the Intercreditor and Subordination Agreements, the Closing Date Mortgages, the Mortgages, and any other agreement that creates or purports to create a Lien in favor of the Collateral Agent for the benefit of the
Secured Parties. 
  
 “Commitment” means with
respect to any Purchaser at any time, the amount set forth for such Purchaser on Schedule I hereto. 
  
 “Common Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated,
whether voting or non-voting) of such Person’s equity, other than Preferred Stock of such Person, whether outstanding on the date of this Agreement or issued thereafter, including, without limitation, all series and classes of such common
stock. 
  
 “Competitor” shall mean any Person
identified on Schedule IV hereto (or any Affiliate thereof) or any other Person (or any Affiliate thereof) that engages primarily or as one of its principal activities in the business of providing competitive local exchange telecommunications
services to business customers. 
  
 “Confidential
Information” has the meaning specified in Section 10.05. 
  
 “Consolidated” refers to the consolidation of accounts in accordance with GAAP. 
  
 “Consolidated Debt” means the Debt of the Parent and its Subsidiaries. 
  
 “Consolidated Net Income” means, for any period, the net income (or loss) of the Issuer and its
Subsidiaries on a Consolidated basis for such period taken as a single accounting period determined in conformity with GAAP; provided that there shall be excluded (a) the income (or loss) of any Person (other than a Subsidiary of the
Issuer) in which any other Person (other than the Issuer or any of its Subsidiaries) has a joint interest, except to the extent of the amount of dividends or other distributions actually paid to the Issuer or any of its Subsidiaries by such Person
during such period, (b) the income (or loss) of any Person accrued prior to the date such Person becomes a Subsidiary of the Issuer or is merged into or consolidated with the Issuer or any of its Subsidiaries or the date on which such
Person’s assets are acquired by the Issuer or any of its Subsidiaries, (c) the income of any Subsidiary of the Issuer to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of such income is
not at such time permitted by operation of the terms of such Subsidiary’s charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation 

  

 6 








 
applicable to such Subsidiary, and (d) any after-tax gains or losses attributable to asset sales or returned surplus assets of any Plan. 
  
 “Consolidated Net Worth” means, at any date of
determination, stockholders’ equity as set forth on the most recently available quarterly or annual consolidated balance sheet of the Parent and its Subsidiaries (which shall be as of a date not more than 90 days prior to the date of such
computation), less any amounts attributable to any equity security convertible into or exchangeable for Debt, the cost of treasury stock and the principal amount of any promissory notes receivable from the sale of the Capital Stock of the Parent or
its direct or indirect Subsidiaries, each item to be determined in conformity with GAAP (excluding the effects of foreign currency exchange adjustments under Financial Accounting Standards Board Statement of Financial Accounting Standards
No. 52). 
  
 “Contingent Obligation” means,
with respect to any Person, any Obligation or arrangement of such Person to guarantee or intended to guarantee any Debt, leases, dividends or other payment Obligations (“primary obligations”) of any other Person (the
“primary obligor”) in any manner, whether directly or indirectly, including, without limitation, (a) the direct or indirect guarantee, endorsement (other than for collection or deposit in the ordinary course of business),
co-making, discounting with recourse or sale with recourse by such Person of the Obligation of a primary obligor, (b) the Obligation to make take-or-pay or similar payments, if required, regardless of nonperformance by any other party or
parties to an agreement or (c) any Obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds
(A) for the purchase or payment of any such primary obligation or (B) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase
property, assets, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold
harmless the holder of such primary obligation against loss in respect thereof. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such
Contingent Obligation is made (or, if less, the maximum amount of such primary obligation for which such Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder), as determined by such Person in good faith. 
  
 “Conversion Shares” means the Common Stock or other securities issued or issuable upon conversion of the
Series C Preferred Stock. 
  
 “Current Assets” of
any Person means all assets of such Person that would, in accordance with GAAP, be classified as current assets of a company conducting a business the same as or similar to that of such Person, after deducting adequate reserves in each case in which
a reserve is proper in accordance with GAAP. 
  
 “Current
Liabilities” of any Person means (a) all Debt of such Person that by its terms is payable on demand or matures within one year after the date of determination (excluding any Debt renewable or extendible, at the option of such Person,
to a date more than 

  

 7 








 
one year from such date or arising under a revolving credit or similar agreement that obligates the lender or lenders to extend credit during a period of
more than one year from such date), (b) all amounts of Funded Debt of such Person required to be paid or prepaid within one year after such date and (c) all other items (including taxes accrued as estimated) that in accordance with GAAP
would be classified as current liabilities of such Person. 
  
 “Debt” of any Person means, at any time without duplication, (a) all indebtedness of such Person for borrowed money, (b) all Obligations of such Person for the deferred purchase price of property or services
(other than trade payables not overdue by more than 90 days incurred in the ordinary course of such Person’s business, unless such trade payables overdue by more than 90 days are contested in good faith by such Person), (c) all Obligations
of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all Obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such
Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all Obligations of such Person as lessee under Capitalized Leases,
(f) all Obligations of such Person under acceptance, letter of credit or similar facilities, (g) all Obligations of such Person to Redeem any Equity Interests in such Person or in any other Person, or to Redeem options, warrants or other
rights to purchase or otherwise acquire such Equity Interests, before the date which is six months after the Termination Date (provided, that if the exercise of the right to Redeem such Equity Interests or options, warrants or other rights is
at the option of such Person under the terms of such Equity Interests or otherwise, the date of such Person’s exercise, if any, of such right to Redeem shall be the date on which such Person shall first be deemed to have an Obligation to Redeem
such Equity Interests or options, warrants or other rights for purposes of this definition), valued in the case of Preferred Interests at the stated liquidation preference of such Preferred Interests plus accrued and unpaid dividends from time to
time, (h) all Obligations of such Person in respect of Hedge Agreements, valued at the Agreement Value thereof, (i) all Contingent Obligations of such Person and (j) all indebtedness and other payment Obligations referred to in
clauses (a) through (i) above of another Person secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property (including, without limitation, accounts and contract
rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such indebtedness or other payment Obligations. Notwithstanding clause (g) of this definition, the Obligations referred to in such clause
(g) as constituting “Debt” shall not include Obligations of such Person to Redeem Equity Interests in such Person (or to Redeem options, warrants or other rights to purchase or otherwise acquire such Equity Interests) in
exchange for, or out of the proceeds of a substantially concurrent offering of, other Equity Interests (or options, warrants or other rights to purchase or otherwise acquire such other Equity Interests) in such Person, provided, that any
Obligations of such Person to Redeem such other Equity Interests (or to Redeem options, warrants or other rights to purchase or acquire such other Equity Interests) shall be subject to the provisions of such clause (g). 
  
 “Debt for Borrowed Money” of any Person means all items
that, in accordance with GAAP, would be classified as indebtedness on a Consolidated balance sheet of such Person; provided, however, notwithstanding the foregoing, “Debt for Borrowed Money” shall not include any trade
payables, any Preferred Interests (including, without limitation, with respect to the 

  

 8 








 
Obligors, the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock) or any dividends accrued or paid or payable with
respect to Preferred Interests. 
  
 “Default”
means any Event of Default or any event that would constitute an Event of Default but for the requirement that notice be given or time elapse or both. 
  
 “Disclosed Litigation” has the meaning specified in Section 3.01(c). 
  
 “EBITDA” means, for any Person for any period, the sum,
determined on a Consolidated basis, without duplication, of (a) Consolidated Net Income (other than interest income determined in accordance with GAAP), (b) interest expense, (c) income tax expense, (d) depreciation expense,
(e) amortization expense, (f) the aggregate of all non-cash items included in arriving at Consolidated Net Income in clause (a) above (other than any such non-cash item to the extent it represents an accrual of or reserve for cash
expenditures for any future period or a write-down or write-off of a right to payment), (g) asset impairment charges, and (h) special consulting fees, and other charges incurred pursuant to Statement of Financial Accounting Standard
No. 146, all as set forth on Schedule V hereto. Notwithstanding the foregoing and for purposes of the computations of EBITDA with respect to the financial condition covenants set forth in Section 5.02(r), EBITDA for the Parent and
its Subsidiaries for the fiscal quarter ending September 30, 2005 shall be equal to the quotient of (i) the product of (x) EBITDA for the nine-month period then ended multiplied by (y) twelve, (ii) divided by nine; for
fiscal quarters ending December 31, 2005 and thereafter, EBITDA for the Parent and its Subsidiaries shall be calculated based on the twelve-month period ending on the last date of the most recently ended fiscal quarter. 
  
 “Eligible Assignee” means (a) any Institutional
Investor (and any fund that regularly invests in notes or loans similar to the Notes) that is a Purchaser or any Affiliate of a Purchaser or that has become a holder of a Note in accordance with the terms of this Agreement, or any Institutional
Investor or fund that regularly invests in notes or loans similar to the Notes that has been approved by the Issuer (such approval not to be unreasonably withheld or delayed), or (b) for so long as an Event of Default shall have occurred and be
continuing, any Institutional Investor or other financial investor (including, without limitation, any fund that regularly invests in notes or loans similar to the Notes); provided, however, that neither any Obligor nor any Affiliate
of an Obligor (other than WCAS and any Affiliate of WCAS that does not have any ownership interest in any Obligor or any Subsidiary of any Obligor) shall qualify as an Eligible Assignee under this definition; provided, further, that no
Competitor shall qualify as an Eligible Assignee under this definition. 
  
 “Environmental Action” means any action, suit, demand, demand letter, claim, notice of non-compliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement
relating in any way to any Environmental Law, any Environmental Permit or Hazardous Material or arising from alleged injury or threat to health, safety or the environment, including, without limitation, (a) by any governmental or regulatory
authority for enforcement, cleanup, removal, response, remedial or other actions or damages and (b) by any governmental or regulatory authority or third party for damages, contribution, indemnification, cost recovery, compensation or injunctive
relief. 
  

 9 








 “Environmental Law” means any Federal, state, local or foreign statute, law, ordinance,
rule, regulation, code, order, writ, judgment, injunction, decree or judicial or agency interpretation, policy or guidance relating to pollution or protection of the environment, health, safety or natural resources, including, without limitation,
those relating to the use, handling, transportation, treatment, storage, disposal, release or discharge of Hazardous Materials. 
  
 “Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental
Law. 
  
 “Equity Interests” means, with respect
to any Person, shares of capital stock of (or other ownership or profit interests in) such Person, warrants, options or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or profit
interests in) such Person, securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or other acquisition from such Person of
such shares (or such other interests), and other ownership or profit interests in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants,
options, rights or other interests are authorized or otherwise existing on any date of determination. 
  
 “Equity Plan Securities” means any Equity Interests awarded, granted, sold or issued pursuant to any stock option, restricted stock,
stock incentive, deferred compensation, profit sharing, defined benefit, defined contribution or other benefit plan of any Obligor or any Subsidiary of any Obligor. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the
regulations promulgated and rulings issued thereunder. 
  
 “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a member of the controlled group of any Obligor, or under common control with any Obligor, within the meaning of Section 414 of the Internal
Revenue Code. 
  
 “ERISA Event” means
(a) (i) the occurrence of a reportable event, within the meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day notice requirement with respect to such event has been waived by the PBGC or (ii) the
requirements of Section 4043(b) of ERISA apply with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of
Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within the following 30 days; (b) the application for a minimum funding waiver with respect to a Plan; (c) the provision by the administrator of any
Plan of a notice of intent to terminate such Plan, pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA), excluding, however, a “standard
termination” as defined in Section 4041(a)(2) of ERISA; (d) the cessation of operations at a facility of any Obligor or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by
any Obligor or any ERISA Affiliate from a Multiple Employer Plan during a plan year for which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for imposition of a lien under Section 302(f)
of ERISA shall have 

  

 10 








 
been met with respect to any Plan; (g) the adoption of an amendment to a Plan requiring the provision of security to such Plan pursuant to
Section 307 of ERISA; or (h) the institution by the PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes
grounds for the termination of, or the appointment of a trustee to administer, such Plan. 
  
 “Events of Default” has the meaning specified in Section 6.01. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Exchange Agreement” has the meaning specified in the recitals hereto. 
  
 “Existing Purchasers” has the meaning specified in the
preamble hereto. 
  
 “Existing Second Lien Credit
Agreement” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “Existing Stockholders” means the WCAS Securityholders and their Affiliates. For purposes of this definition, “Affiliate”
means, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person. For purposes of this definition, “control” (including, with correlative
meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Existing Third Lien Notes” means the notes issued under the Original Third Lien Credit Agreement. 
  
 “Extraordinary Receipt” means any cash received by or paid
to or for the account of any Person not in the ordinary course of business, including, without limitation, tax refunds, pension plan reversions, proceeds of insurance (other than proceeds of business interruption insurance to the extent such
proceeds constitute compensation for lost earnings), condemnation awards (and payments in lieu thereof), indemnity payments, and any purchase price adjustment received in connection with any purchase agreement; provided, however, that
an Extraordinary Receipt shall not include cash receipts, awards or payments received from proceeds of insurance, condemnation awards (or payments in lieu thereof) or indemnity payments to the extent that such proceeds, awards or payments
(a) are in respect of loss or damage to fixed assets, real property or equipment and are applied to replace or repair such fixed assets, real property or equipment in respect of which such proceeds, awards or payments were received in
accordance with the terms of the Purchase Documents (or to reimburse such Person for expenditures previously incurred on account of such replacement or repair), provided, that such proceeds, awards or payments (i) are immediately
deposited into an account held by the Collateral Agent on behalf of the Purchasers, and (ii) are applied within nine months after the occurrence of such damage or loss, provided, that the Issuer shall have delivered documentation
reasonably satisfactory to the Agent evidencing the cost and proposed use of any equipment repaired or replaced pursuant thereto, or (b) are received by any Person in respect of any third party claim against such Person and applied to pay (or
to reimburse such Person for its prior payment of) such claim and the costs and 

  

 11 








 
expenses of such Person with respect thereto, or (c) are received by any Person by way of reimbursement or indemnification of such Person for costs and
expenses incurred by such Person. 
  
 “FCC” means
the Federal Communications Commission, or any governmental agency succeeding to the functions thereof. 
  
 “Financial Covenants Certificate” means the certificate delivered by the Issuer and certified by the Chief Financial Officer of
the Issuer demonstrating compliance with the applicable covenants, in the form attached hereto as Exhibit B. 
  
 “First Lien Documents” means the First Lien Note Purchase Agreement, the First Lien Notes, the security agreements pursuant thereto and
all other agreements related thereto, as amended from time to time. 
  
 “First Lien Lenders” has the meaning specified in the recitals to this Agreement. 
  
 “First Lien Note Purchase Agreement” has the meaning specified in the recitals to this Agreement, as amended from time to time.

  
 “First Lien Notes” has the meaning specified
in the recitals to this Agreement, as amended from time to time. 
  
 “Fiscal Period” means a fiscal quarter of the Parent and its Consolidated Subsidiaries ending on March 31, June 30, September 30 and December 31 in any calendar year. 
  
 “Fiscal Year” means a fiscal year of the Parent and its
Consolidated Subsidiaries ending on December 31 in any calendar year. 
  
 “Fully Diluted Basis” means, as of any date of determination, the sum of (a) the number of shares of Voting Stock outstanding as of such date of determination plus (b) the number of shares
of Voting Stock issuable upon the exercise, conversion or exchange of all then-outstanding warrants, options, convertible Capital Stock or indebtedness, exchangeable Capital Stock or indebtedness, or other rights exercisable for or convertible or
exchangeable into, directly or indirectly, shares of Voting Stock, whether at the time of issue or upon the passage of time or upon the occurrence of some future event, and whether or not in the money as of such date of determination. 
  
 “Funded Debt” of any Person means Debt of such Person that
by its terms matures more than one year after the date of its creation or matures within one year from such date but is renewable or extendible, at the option of such Person, to a date more than one year after such date or arises under a revolving
credit or similar agreement that obligates the lender or lenders to extend credit during a period of more than one year after such date, including, without limitation, all amounts of Funded Debt of such Person required to be paid or prepaid within
one year after the date of its creation. 
  
 “GAAP” has the meaning specified in Section 1.03. 
  

 12 








 “Governance Agreement” means the Amended and Restated Governance Agreement, dated as of
July 26, 2005, among the Parent, WCAS Capital Partners III, L.P., WCAS, WCAS Information Partners, L.P., Special Value Absolute Bond Fund II, LLC, Special Value Absolute Return Fund, LLC, the other Purchasers party thereto and certain
individual investors and trusts listed on the signature pages thereto, as amended. 
  
 “Governing Body” means the board of directors or other body having the power to direct or cause the direction of the management and policies of a Person that is a corporation, partnership, trust or
limited liability company. 
  
 “Governmental
Authority” means any political subdivision or department thereof, any other governmental or regulatory body, commission, central bank, board, bureau, organ or instrumentality or any court, in each case whether federal, state, local or
foreign. 
  
 “Guaranteed Obligations” has the
meaning specified in Section 7.01(a). 
  
 “Guaranties” means the Parent Guaranty and the Subsidiary Guaranties. 
  
 “Guarantors” means the Parent and the Subsidiary Guarantors. 
  
 “Guaranty Supplement” has the meaning specified in Section 7.05. 
  
 “Hazardous Materials” means (a) petroleum or petroleum
products, by-products or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls or radon gas and (b) any other chemicals, materials, substances or wastes designated, classified or regulated as
hazardous or toxic or as a pollutant or contaminant under any Environmental Law or with respect to which liability or standards of conduct are imposed under any Environmental Law. 
  
 “Hedge Agreements” means interest rate swap, cap or collar agreements, interest rate future or option
contracts, currency swap agreements, currency future or option contracts and other hedging agreements. 
  
 “Highest Lawful Rate” means the highest lawful interest rate under applicable state law. 
  
 “Incur” means, with respect to any Debt, to incur, create,
issue, assume, guarantee or otherwise become liable for or with respect to, or become responsible for, the payment of, contingently or otherwise, such Debt. 
  
 “Indemnified Party” has the meaning specified in Section 10.17(a). 
  
 “Information Statement” has the meaning specified in
Section 4.01(ee). 
  
 “Institutional
Investor” means (a) any original Purchaser of a Note, (b) any holder of a Note, and (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any
insurance company or holding 

  

 13 








 
company thereof, any broker or dealer, or any other similar financial institution or entity, regardless of legal form. 
  
 “Insufficiency” means, with respect to any Plan, the amount,
if any, of its unfunded benefit liabilities, as defined in Section 4001(a)(18) of ERISA. 
  
 “Interconnection Agreements” means each Interconnection Agreement entered into by and between the Issuer and/or any Subsidiary Guarantor, on the one hand, and (a) BellSouth Telecommunications,
Inc., (b) Sprint companies (including Sprint Florida Incorporated, Carolina Telephone, Telegraph Company and Central Telephone Company – North Carolina Division, United Telephone Company of the Carolinas, United Telephone – Southeast
Inc., Central Telephone Company of Virgina and United Telephone – Southeast Inc.), or (c) Verizon companies (including Verizon Florida, Inc., GTE South Incorporated, GTE Southwest Incorporated d/b/a Verizon Southwest, Verizon Delaware,
Inc., Verizon South, Inc., Verizon Maryland, Inc., Verizon New Jersey, Inc., Verizon New York, Inc., Verizon Pennsylvania, Inc., Verizon Virginia, Inc., Verizon Washington D.C. Inc., Verizon West Virginia, Inc.), on the other hand, and any agreement
replacing any such Interconnection Agreement from time to time. 
  
 “Intercreditor and Subordination Agreements” means the Second Lien Intercreditor and Subordination Agreement and the Third Lien Intercreditor and Subordination Agreement. 
  
 “Interest Coverage Ratio” means, at any date of
determination the ratio of (a) Consolidated EBITDA of the Parent and its Subsidiaries to (b) the cumulative cash interest paid in respect of all Debt for Borrowed Money of or by the Parent and its Subsidiaries. For the fiscal quarter
ending September 30, 2005, cumulative cash interest paid shall be calculated as cumulative cash interest paid for the nine-month period then ended multiplied by twelve divided by nine; for fiscal quarters ending December 31, 2005 and
thereafter, cumulative cash interest paid shall be calculated based on the twelve-month period ending on the last date of the most recently ended fiscal quarter. 
  
 “Interest Payment Date” means March 31, June 30, September 30 and December 31
of each year, commencing on September 30, 2005; provided, however, that whenever the Interest Payment Date would otherwise occur on a day other than a Business Day, such Interest Payment Date shall be extended to occur on the next
succeeding Business Day, unless interest is required to be paid under the Second Lien Loan Documents on the preceding Business Day, in which case the Interest Payment Date shall occur on the preceding Business Day. 
  
 “Internal Revenue Code” means the Internal Revenue Code of
1986, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
  
 “Inventory” means all Inventory referred to in Section 1(b) of the Security Agreement. 
  
 “Investment” in any Person means any loan or advance to such
Person, any purchase or other acquisition of any Equity Interests or Debt or the assets comprising a division or business unit or a substantial part or all of the business of such Person, any capital 

  

 14 








 
contribution to such Person or any other direct or indirect investment in such Person, including, without limitation, any acquisition by way of a merger or
consolidation and any arrangement pursuant to which the investor Incurs Debt of the types referred to in clause (i) or (j) of the definition of “Debt” in respect of such Person. 
  
 “Issuer” has the meaning specified in the preamble of this
Agreement. 
  
 “LIBOR” means, at all times during
any calendar month, the one-month London Interbank Offered Rate (rounded upward to the nearest 1/16 of one percent) that appears on Bloomberg as of approximately 11:00 a.m. (Los Angeles time) two Business Days prior to the commencement of such
calendar month (or, in the case of the month in which the Closing Date occurs, two Business Days prior to the Closing Date); provided, that if such index ceases to exist or is no longer published or announced, then the term “LIBOR” means
the one-month London Interbank Offered Rate (rounded upward to the nearest 1/16 of one percent) as published in The Wall Street Journal on such date of determination, and if this later index ceases to exist or is no longer published or
announced, then the term “LIBOR” means the Prime Rate (rounded upward to the nearest 1/16 of one percent) as published in The Wall Street Journal on such date of determination. LIBOR shall be determined on any date of determination
by the Agent. 
  
 “Lien” means any lien, security
interest or other charge or encumbrance of any kind, or any other type of preferential arrangement, including, without limitation, the lien or retained security title of a conditional vendor and any easement, right of way or other encumbrance on
title to real property. 
  
 “Management Plan”
means that certain ITC^DeltaCom 2005-2006 Business Plan, dated March 9, 2005, as delivered by the Parent to the initial Purchasers. 
  
 “March 2005 Warrants” has the meaning specified in Section 5.01(t). 
  
 “Margin Stock” has the meaning specified in Regulation U.

  
 “Material Adverse Change” means any material
adverse change in the business, condition (financial or otherwise), operations, performance, properties or prospects of the Obligors and the Subsidiaries of the Obligors, taken as a whole. 
  
 “Material Adverse Effect” means a material adverse effect on
(a) the business, condition (financial or otherwise), operations, performance, properties or prospects of the Obligors and the Subsidiaries of the Obligors, taken as a whole, (b) the rights and remedies of the Agents or any Purchaser under
any Purchase Document or (c) the ability of any Obligor to perform its Obligations under any Purchase Document to which it is or is to be a party. 
  
 “Material Contract” means, with respect to any Person, each contract to which such Person is a party involving aggregate consideration
payable to or by such Person of $10,000,000 or more in any year or otherwise material to the business, condition (financial or otherwise), operations, performance, properties or prospects of such Person, including but not limited to, in the case of
any Obligor or any Subsidiary of any Obligor, the Interconnection Agreements. 
  

 15 








 “Mortgage Policies” has the meaning specified in Section 5.01(n)(ii).

  
 “Mortgages” has the meaning specified in
Section 5.01(n). 
  
 “Multiemployer
Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which any Obligor or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made
or accrued an obligation to make contributions. 
  
 “Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Obligor or any ERISA Affiliate and at least one Person other than the
Obligors and the ERISA Affiliates or (b) was so maintained and in respect of which any Obligor or any ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated.

  
 “Net Cash Proceeds” means, with respect to
any sale, lease, transfer or other disposition of any asset by any Person (excluding Equity Interests), or any Extraordinary Receipt received by or paid to or for the account of any Person, the aggregate amount of cash received from time to time
(whether as initial consideration or through payment or disposition of deferred consideration) by or on behalf of such Person in connection with such transaction after deducting therefrom only (without duplication) (a) reasonable and customary
brokerage commissions, underwriting fees and discounts, legal fees and expenses, finder’s fees and other similar fees and commissions and out-of-pocket costs and expenses, and (b) the amount of taxes payable in connection with or as a
result of such transaction, in each case to the extent, but only to the extent, that the amounts so deducted are, at the time of receipt of such cash, actually paid to a Person that is not an Affiliate of such Person and are properly attributable to
such transaction or to the asset that is the subject thereof; provided, however, that in the case of taxes that are deductible under clause (b) above but for the fact that, at the time of receipt of such cash, such taxes have not
been actually paid or are not then payable, such Obligor or such Subsidiary may deduct an amount (the “Reserved Amount”) equal to the amount reserved in accordance with GAAP for such Obligor’s or such Subsidiary’s
reasonable estimate of such taxes, other than taxes for which such Obligor or such Subsidiary is indemnified; provided, further, however, that, at the time such taxes are paid, an amount equal to the amount, if any, by which the
Reserved Amount for such taxes exceeds the amount of such taxes actually paid shall constitute “Net Cash Proceeds” of the type for which such taxes were reserved for all purposes hereunder; provided, further, still,
that Net Cash Proceeds from Extraordinary Receipts shall not include up to $500,000 of cash proceeds in the aggregate received in connection with one or more such receipts to the extent such cash proceeds are applied to replace the asset in respect
of which such cash proceeds were received or are otherwise invested in such Person’s business, so long as application is made within nine months after the occurrence of such receipt. 
  
 “Non-Consenting Purchaser” has the meaning set forth in Section 10.01(e). 
  
 “Note(s)” has the meaning specified in
Section 2.01(a). 
  
 “NPL” means the
National Priorities List under CERCLA. 
  

 16 








 “Obligation” means, with respect to any Person, any payment, performance or other
obligation of such Person of any kind, including, without limitation, any liability of such Person on any claim, whether or not the right of any creditor to payment in respect of such claim is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, disputed, undisputed, legal, equitable, secured or unsecured, and whether or not such claim is discharged, stayed or otherwise affected by any proceeding referred to in Section 6.01(f). Without limiting the
generality of the foregoing, the Obligations of any Obligor under the Purchase Documents include (a) the obligation to pay principal, interest, charges, the Prepayment Fee, expenses, fees, attorneys’ fees and disbursements, indemnities and
other amounts payable by such Obligor under any Purchase Document, including Post-Petition Interest, and (b) the obligation of such Obligor to reimburse any amount in respect of any of the foregoing that any Purchaser, in its sole discretion,
may elect to pay or advance on behalf of such Obligor. 
  
 “Obligors” means the Issuer and the Guarantors. 
  
 “Open Year” has the meaning specified in Section 4.01(r)(iii). 
  
 “Ordinary Course Obligations” means obligations (exclusive of obligations for the payment of borrowed money) under letters of credit,
surety bonds, pledges, deposits or other arrangements made to secure the performance of tenders, bids, leases, statutory or regulatory obligations, bankers’ acceptances, surety and appeal bonds, government contracts, performance and
return-of-money bonds and other obligations of a similar nature incurred in the ordinary course of business. 
  
 “Original Third Lien Credit Agreement” has the meaning specified in the recitals of parties to this Agreement. 
  
 “Other Taxes” has the meaning specified in
Section 2.06(b). 
  
 “Parent” has the
meaning specified in the preamble of this Agreement. 
  
 “Parent Guaranty” means the guaranty of the Parent set forth in Article VII. 
  
 “Parent Transaction Securities” means the Notes, the Warrants, the Warrant Shares and the Conversion Shares. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation (or
any successor). 
  
 “Permitted Encumbrances” has
the meaning specified in the Mortgages. 
  
 “Permitted
Liens” means such of the following as to which no enforcement, collection, execution, levy or foreclosure proceeding shall have been commenced: (a) Liens for taxes, assessments and governmental charges or levies to the extent not
required to be paid under Section 5.01(b); (b) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in the ordinary course of
business securing obligations that are not overdue for a period of more than 30 days; (c) pledges or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations; and
(d) Permitted Encumbrances. 
  

 17 








 “Permitted Parent Debt” has the meaning specified in Section 5.02(b)(v).

  
 “Permitted Reorganization” means a corporate
reorganization transaction or series of transactions approved by the Agent in its reasonable discretion pursuant to which certain business operations of BTI are combined with certain business operations of ITC^DeltaCom Communications, Inc. and
DeltaCom Information Systems, Inc. (whether accomplished by merger, share exchange, stock transfer, asset transfer or otherwise) for purposes of avoiding overlapping of certain interconnection agreements, certain duplicative fees and expenses, and
otherwise streamlining the business and operations of the Parent and its Subsidiaries; provided, that, in addition to other reasonable conditions the Agent may request, (a) in the case of any merger or consolidation involving the Issuer,
the Issuer shall be the surviving Person, (b) the Person formed by or surviving such merger or consolidation (if not the Parent) shall be a direct or indirect wholly-owned Subsidiary of the Parent and if a Subsidiary Guarantor is a party
thereto, the Person formed by or surviving such merger or consolidation (if not the Parent or the Issuer) shall be a direct or indirect wholly-owned Subsidiary Guarantor, (c) immediately after giving effect to such reorganization, on a pro
forma basis, the Parent and its Subsidiaries, taken as a whole, shall have a Consolidated Net Worth equal to or greater than the Consolidated Net Worth of the Parent and its Subsidiaries, taken as a whole, immediately prior to such reorganization,
and (d) such reorganization does not result in any Obligor or any of its Subsidiaries no longer being wholly owned, directly or indirectly, within the ITC^DeltaCom, Inc. consolidated group of companies. Notwithstanding the Agent’s right to
approve the Permitted Reorganization in its reasonable discretion, neither the Agent nor any Purchaser shall charge the Obligors a fee for such approval, so long as no other lenders of the Issuer charge any fee for approval and/or consent to the
Permitted Reorganization. 
  
 “Person” means an
individual, partnership, corporation (including a business trust), limited liability company, joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof.

  
 “Plan” means a Single Employer Plan or a
Multiple Employer Plan. 
  
 “Pledged Debt” has
the meaning specified in the Security Agreement. 
  
 “Pledged Shares” has the meaning specified in the Security Agreement. 
  
 “Post-Petition Interest” means any and all interest and expenses that accrue after the commencement of any case, proceeding or other
action relating to the bankruptcy, insolvency or reorganization of any one or more of the Obligors (or would accrue but for the operation of applicable bankruptcy or insolvency laws) whether or not such interest is allowed or allowable as a claim in
any such proceeding. 
  
 “Pre-Closing Date
Information” means all of the written information provided by or on behalf of the Issuer to the Purchasers prior to the Closing Date. 
  
 “Preferred Interests” means, with respect to any Person, Equity Interests issued by such Person that are entitled to a preference or
priority over any other Equity Interests issued by such Person upon any distribution of such Person’s property and assets, whether by dividend or upon liquidation. 
  

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 “Preferred Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such Person’s preferred or preference equity, whether outstanding on the date of this Agreement or issued thereafter, including, without limitation, all
series and classes of such preferred or preference stock. 
  
 “Prepayment Fee” has the meaning specified in Section 2.09. 
  
 “Principal Lending Office” means, with respect to any Purchaser, the office of such Purchaser specified as its “Principal Lending
Office” opposite its name on Schedule I hereto or in the Assignment and Acceptance pursuant to which it became a Purchaser, as the case may be, or such other office of such Purchaser as such Purchaser may from time to time specify to the
Issuer and the Agent. 
  
 “Projections” has the
meaning specified in Section 4.01(i). 
  
 “PUC” means any state regulatory agency or body that exercises jurisdiction over the rates or services or the ownership, construction or operation of any network facility or long distance telecommunications systems or over
Persons who own, construct or operate a network facility or long distance telecommunications systems, in each case by reason of the nature or type of the business subject to regulation and not pursuant to laws and regulations of general
applicability to Persons conducting business in such state. 
  
 “Purchase Documents” means (a) for all purposes other than the Collateral Documents, (i) this Agreement, (ii) the Notes, (iii) the Warrant Documents, (iv) the Exchange Agreement and (v) the
Collateral Documents and (b) for purposes of the Collateral Documents, (i) this Agreement, (ii) the Notes, (iii) the Collateral Documents and (iv) the Exchange Agreement, in all cases as the same may be amended or refinanced
from time to time. 
  
 “Purchasers” means the
Existing Purchasers, the New Purchasers and each Person that shall become a New Purchaser pursuant to the terms of this Agreement. 
  
 “Redeem” means to purchase, redeem or otherwise retire or acquire for value, provided, however, that, notwithstanding the
foregoing, “Redeem” shall not include (a) the acquisition and/or retirement by the Parent of Common Stock or other Equity Interests of the Parent tendered by the holder of an Equity Plan Security in payment of an exercise or
purchase price specified in such Equity Plan Security, (b) a Benefit Plan Exchange Offer, (c) the purchase or redemption of Equity Interests using only Common Stock (or warrants or options to purchase Common Stock) as consideration for
such purchase or redemption, or (d) the payment by the Parent of cash in lieu of fractional shares of Capital Stock of the Parent in an amount not to exceed $500,000 through the Termination Date. 
  
 “Regulation U” means Regulation U of the Board of Governors
of the Federal Reserve System, as in effect from time to time. 
  
 “Replaced Purchaser” has the meaning specified in Section 2.06(g). 
  
 “Replacement Closing Date” has the meaning specified in Section 2.06(g). 
  

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 “Replacement Purchaser” has the meaning specified in Section 2.06(g).

  
 “Required Holders” means, at any time,
Purchasers owed or holding at least a majority of the aggregate principal amount of the Notes outstanding at such time; provided, however, that if any Purchaser shall be a Defaulting Purchaser at such time, there shall be excluded from
the determination of Required Holders at such time the aggregate principal amount of the Notes owing to such Purchaser (in its capacity as a Purchaser) and outstanding at such time. 
  
 “Required Warrantholders” means, at any time, holders of a majority of the Warrants. 
  
 “Responsible Officer” means any officer of any Obligor or
any of its Subsidiaries. 
  
 “Restricted Payment”
has the meaning specified in Section 5.02(g). 
  
 “SEC” means the United States Securities and Exchange Commission. 
  
 “SEC Documents” has the meaning specified in Section 4.01(ff). 
  
 “Second Lien Agent” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “Second Lien Intercreditor and Subordination Agreement”
means the Intercreditor and Subordination Agreement, dated as of the date hereof by and among the Agent and the Collateral Agent on their own behalf and on behalf of the First Lien Lenders, the Second Lien Agent on their own behalf and on behalf of
the Second Lien Lenders, and the Obligors, as amended. 
  
 “Second Lien Lenders” means the “Lenders” under and as defined in the Amended Second Lien Credit Agreement, as amended. 
  
 “Second Lien Loan Documents” means the “Loan Documents” as defined in the Amended Second Lien Credit Agreement, as amended,
refinanced or replaced in accordance with the Third Lien Intercreditor and Subordination Agreement. 
  
 “Secured Obligations” has the meaning specified in the Security Agreement and shall include without limitation the obligations secured by
the Mortgages. 
  
 “Secured Parties” means the
Agent, the Collateral Agent and the Purchasers. 
  
 “Securities” has the meaning specified in Section 2.01(b). 
  
 “Securities Act” means the Securities Act of 1933, as amended. 
  
 “Securities Purchase” has the meaning specified in Section 2.01(c). 
  
 “Security Agreement” has the meaning specified in
Section 3.01(b)(ii). 
  

 20 








 “Senior Debt” means, for any period, all Debt of the Obligors and their respective
Subsidiaries incurred pursuant to this Agreement and secured by a first priority Lien on real or personal property of the Obligors and their respective Subsidiaries. 
  
 “Senior Debt Ratio” means, as of any date of determination, the ratio of (a) Senior Debt as of such
date to (b) Consolidated EBITDA of the Parent and its Subsidiaries. 
  
 “Senior Officer” means any Person holding any of the following offices (or any similar position from time to time) of the Parent: 
  
 Chief Executive Officer; 
  
 Chief Financial Officer; 
  
 General Counsel; 
  
 Senior Vice President, Finance/Controller; 
  
 Executive Vice President, Operations; 
  
 Senior Vice President, Finance/Treasurer; 
  
 Executive Vice President, Retail Sales; 
  
 Senior Vice President, Carrier Sales; 
  
 Chief Information Officer; 
  
 Vice President, Network Planning; 
  
 Vice President, Market Optimization & Planning; 
  
 Vice President, Systems; 
  
 Vice President, Engineering; 
  
 Vice President, Marketing & Product Development; 
  
 Vice President, IT Services; 
  
 Vice President, Account Services; 
  
 Vice President, Network Operations; or 
  
 Vice President, Human Resources 
  
 “Series A Certificate of Designation” means the Parent’s Certificate of Designation of the Powers, Preferences and Relative,
Participating, Optional and other Special Rights of 8% Series A Convertible Redeemable Preferred Stock and Qualifications, Limitations and Restrictions Thereof, as in effect from time to time. 
  
 “Series A PIK Dividends” means the shares of Series A
Preferred Stock paid or payable as dividends on outstanding shares of Series A Preferred Stock. 
  
 “Series A Preferred Stock” means the shares of preferred stock of the Parent designated as the 8% Series A Convertible Redeemable
Preferred Stock and issued pursuant to the Series A Certificate of Designation, including, without limitation, Series A PIK Dividends. 
  
 “Series B Certificate of Designation” means the Parent’s Certificate of Designation of the Powers, Preferences and Relative,
Participating, Optional and other Special Rights of 8% Series B Convertible Redeemable Preferred Stock and Qualifications, Limitations and Restrictions Thereof, as in effect from time to time. 
  

 21 








 “Series B PIK Dividends” means the shares of Series B Preferred Stock paid or payable as
dividends on outstanding shares of Series B Preferred Stock. 
  
 “Series B Preferred Stock” means the shares of preferred stock of the Parent designated as the 8% Series B Convertible Redeemable Preferred Stock and issued pursuant to the Series B Certificate of Designation, including,
without limitation, Series B PIK Dividends. 
  
 “Series C
Certificate of Designation” means the Parent’s Certificate of Designation of the Powers, Preferences and Relative, Participating, Optional and other Special Rights of Series C Convertible Preferred Stock and Qualifications, Limitations
and Restrictions Thereof, as in effect from time to time. 
  
 “Series C PIK Dividends” means the shares of Series C Preferred Stock paid or payable as dividends on outstanding shares of Series C Preferred Stock. 
  
 “Series C Preferred Stock” means the shares of preferred stock of the Parent designated as the Series C
Convertible Preferred Stock and issued pursuant to the Series C Certificate of Designation, including, without limitation, Series C PIK Dividends. 
  
 “Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for
employees of any Obligor or any ERISA Affiliate and no Person other than the Obligors and the ERISA Affiliates or (b) was so maintained and in respect of which any Obligor or any ERISA Affiliate could have liability under Section 4069 of
ERISA in the event such plan has been or were to be terminated. 
  
 “Solvency Certificate” has the meaning specified in Section 3.01(r). 
  
 “Solvent” means, with respect to any Person, that as of the date of determination both (a) the then fair market value of the
property of such Person is (i) greater than the total amount of liabilities (including contingent liabilities) of such Person and (ii) not less than the amount that is reasonably believed to be required to pay the probable liabilities on
such Person’s then existing debts as they become absolute and due considering all financing alternatives and asset sales available to such Person pursuant to the terms of this Agreement and (b) such Person does not believe that it shall be
required to incur debts beyond its ability to pay such debts as they become due. For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 
  
 “Subordinated Debt” means Debt that, (a) does not have any scheduled principal payment, mandatory principal prepayment, sinking fund
payment or similar payment due prior to the maturity date of the Notes, (b) is not secured by any Lien on any Property or assets of any Obligor or any Subsidiaries, (c) is subordinated on terms and conditions reasonably satisfactory to the
Required Holders and (d) is subject to such covenants and events of default as may be reasonably acceptable to the Required Holders. 
  
 “Subsidiary” of any Person means any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in
which) more than 50% of (a) the issued 

  

 22 








 
and outstanding capital stock having ordinary voting power to elect a majority of the Board of Directors of such corporation (irrespective of whether at the
time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency), (b) the interest in the capital or profits of such partnership, joint venture or limited liability
company or (c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries. 
  
 “Subsidiary Guarantors” means
the Subsidiaries of the Parent listed on Schedule II hereto and each other Subsidiary of the Parent that shall be required to execute and deliver a guaranty pursuant to Section 5.01(j). 
  
 “Subsidiary Guaranty” means the guaranty of the Subsidiary
Guarantors set forth in Article VII. 
  
 “Surviving
Debt” means Debt of each Obligor and its Subsidiaries outstanding as of the Closing Date (other than Debt under the Purchase Documents, the Second Lien Loan Documents and the First Lien Documents) as set forth on Schedule 4.01(t).

  
 “Tax Agreement” means the Tax Indemnification
Agreement, dated as of August 26, 1997, between ITC Holding Company, Inc. and the Parent. 
  
 “Tax Certificate” has the meaning specified in Section 5.03(m). 
  
 “Taxes” has the meaning specified in Section 2.06(a). 
  
 “TCP” has the meaning specified in the preamble to this Agreement. 
  
 “Termination Date” means the earlier of (a) the date on
which the Agent, by notice to the Issuer, declares the Notes, all interest thereon and all other amounts payable under this Agreement and the other Purchase Documents to be forthwith due and payable pursuant to Section 6.01 and
(b) September 26, 2009. 
  
 “Third Lien
Intercreditor and Subordination Agreement” means the Intercreditor and Subordination Agreement, dated as of the date hereof, among each of the Agents on its behalf and on behalf of the Purchasers, the Second Lien Agents on their own behalf
and on behalf of the Second Lien Lenders, the Agents as provided and defined in the First Lien Documents, the First Lien Lenders, and the Obligors, as amended. 
  

“Title Company” means one or more title insurance companies reasonably satisfactory to the Collateral Agent. 
  
 “Total Leverage Ratio” means, at any date of determination,
the ratio of (x) Consolidated Debt as of such date to (y) Consolidated EBITDA of the Parent and its Subsidiaries. For purposes of computing Total Leverage Ratio only, the term “Debt” as used in clause (x) above means,
without duplication, the aggregate of all Debt of the type described in clauses (a), (b), (c), (d), (e), (h) and (j) of the definition of “Debt” and Contingent Obligations (other than Contingent Obligations relating to minimum
purchase requirements under 

  

 23 








 
agreements entered into in the ordinary course of business of the Parent and its Subsidiaries) of the Parent and its Subsidiaries in respect of the
foregoing. 
  
 “Transactions” means the
transactions contemplated by the Purchase Documents. 
  
 “Transferee” means any direct or indirect transferee of all or any part of a Note in accordance with Section 2.11, as registered in the register maintained by the Issuer pursuant to Section 2.10.

  
 “Unencumbered Parcel” means any parcel of
real property owned by any Obligor or its Subsidiaries that was not previously pledged as Collateral to secure the Obligations of the Obligors under the Existing Second Lien Credit Agreement or the Third Amended ITCD Credit Agreement. 
  
 “Voting Stock” means, with respect to any Person, Capital
Stock of any class or kind (or equivalent Equity Interest in any other Person) ordinarily having the power to vote for the election of directors, managers or other voting members of the governing body of such Person. For purposes of this definition,
Common Stock of the Parent shall constitute Voting Stock of the Parent and the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock shall not constitute Voting Stock of the Parent. 
  
 “Warrants” means warrants governed by the Warrant Agreement
and issued under this Agreement and the Warrant Agreement. 
  
 “Warrant Agreement” means that certain Warrant Agreement, dated as of July 26, 2005, between the Parent and Mellon Investor Services LLC, as warrant agent, as amended. 
  
 “Warrant Documents” means (a) the Warrant Agreement,
(b) the Governance Agreement, (c) that certain Registration Rights Agreement, dated as of even date herewith, by and between the Parent and the New Purchasers and (d) each other agreement, certificate, document or instrument delivered
in connection with the agreements referred to in clauses (a), (b) and (c) above. 
  
 “Warrant Shares” means the Series C Preferred Stock, the Common Stock of the Parent or the other securities of the Parent issued or issuable upon exercise of the Warrants. 
  
 “WCAS” means Welsh, Carson, Anderson & Stowe VIII,
L.P. 
  
 “WCAS Securityholders” means,
collectively, (a) WCAS Capital Partners III, L.P., (b) WCAS, (c) WCAS Information Partners, L.P., (d) each of the individual investors and trusts that executed the Governance Agreement as “WCAS Securityholders,”
(e) the Affiliates of any of the Persons referred to in clauses (a), (b), (c) and (d) above, (f) the related Persons of any of the Persons referred to in clauses (a), (b), (c) and (d) above and (g) the WCAS
Securityholder Permitted Transferees. For purposes of this definition, “Affiliate” means, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such
Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the
possession, directly or indirectly, of the power to 

  

 24 








 
direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

  
 “WCAS Securityholder Permitted Transferees”
means the individuals who are the heirs, executors, administrators, testamentary trustees, legatees, beneficiaries, spouses or lineal descendants of any of the WCAS Securityholders who are natural Persons. 
  
 “Welfare Plan” means a welfare plan, as defined in
Section 3(1) of ERISA, that is maintained for employees of any Obligor or in respect of which any Obligor could have liability. 
  
 “Withdrawal Liability” has the meaning specified in Part I of Subtitle E of Title IV of ERISA. 
  
 Section 1.02 Computation of Time Periods; Other Definitional
Provisions. In this Agreement and the other Purchase Documents in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words
“to” and “until” each mean “to but excluding”. References in the Purchase Documents to any agreement or contract “as amended” shall mean and be a reference to such agreement or contract as
amended, amended and restated, supplemented or otherwise modified from time to time in accordance with its terms. Any of the terms defined herein may, unless the context otherwise requires, be used in the singular or the plural, depending on the
reference. 
  
 (a) References to “Sections” and
“Subsections” shall be to Sections and subsections, respectively, of this Agreement and references to a “Schedule” or an “Exhibit” shall be to Schedules and Exhibits, respectively, attached to this Agreement, in each
case unless otherwise specifically provided. 
  
 (b) The use in
any of the Purchase Documents of the word “include” or “including”, when following any general statement, term or matter, shall not be construed to limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not nonlimiting language (such as “without limitation” or “but not limited to” or words of similar import) is used with reference thereto, but rather
shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter; unless such term related to a period of time. 
  
 (c) References to any document, instrument or agreement shall include all
exhibits, schedules and other attachments thereto. 
  
 Section 1.03 Accounting Terms. Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with generally accepted accounting principles
in the United States of America (“GAAP”). Financial statements and other information required to be delivered by the Issuer to Agent pursuant to Section 5.03 shall be prepared in accordance with GAAP as in effect at
the time of such preparation (and delivered together with the reconciliation statements provided for in Section 5.03(f), if applicable); provided, that all calculations in connection with financial definitions and financial covenants set
forth in Section 5.02(r) shall utilize accounting principles and policies in conformity with those used to prepare the financial statements referred 

  

 25 








 
to in Section 4.01(g)(i); provided, further, if the Issuer notifies the Agent that the Issuer wishes to amend any covenant in
Section 5.02(r) or any related definition to eliminate the effect of any change in GAAP occurring after the date hereof on the operation of such covenant (or if Agent notifies the Issuer that the Required Holders wish to
amend Section 5.02(r) or any related definition for such purpose), then (i) the Issuer and Agent shall negotiate in good faith to agree upon an appropriate amendment to such covenant and (ii) the Issuer’s
compliance with such covenant shall be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became effective until such covenant is amended in a manner satisfactory to the Issuer and the
Required Holders. 
  
 ARTICLE II. SECURITIES PURCHASE

  
 Section 2.01 Authorization; Purchase and Sale of
Securities. 
  
 (a) The Issuer shall authorize the issue and
sale of Senior Secured Notes due 2009 to be dated the date of issuance thereof in an aggregate principal amount of (x) $50,000,000, plus (y) the aggregate amount of capitalized PIK interest on the Existing Third Lien Notes through the
Closing Date, (collectively, the “Notes”, such term to include any such notes issued in substitution therefor pursuant to this Agreement). The Notes shall be substantially in the form of Exhibit A-1. 
  
 (b) The Issuer shall also authorize (i) the issue and sale of detachable
Warrants substantially in the form of Exhibit A-2 (the Warrants, together with $30,000,000 in aggregate principal amount of Notes issued to the New Purchasers, the “Securities”) to purchase either Series C Preferred Stock of
the Parent or Common Stock of Parent, as further set forth in the Warrant Agreement, (ii) the issuance of the Warrant Shares upon exercise of the Warrants and (iii) the issue of the Conversion Shares. 
  
 (c) Subject to the terms and conditions hereof and on the basis of the
representations and warranties hereinafter set forth, the Issuer hereby agrees to sell, and the New Purchasers hereby agree to purchase from the Issuer, the Securities. Each New Purchaser agrees to purchase the Securities in the principal amount (in
the case of the Notes) and the number of Warrants specified opposite such New Purchaser’s name on Schedule I hereto, for an aggregate purchase price of 100% of the principal amount of the Notes specified therein (the “Securities
Purchase”). The New Purchasers, the Agent and the Obligors (on behalf of themselves and their Subsidiaries) hereby covenant and agree to promptly determine the portion of the $30,000,000 aggregate Purchase Price paid for the Securities that
will be allocated to the Notes purchased by the New Purchasers for United States federal income tax purposes and the portion of the Purchase Price that will be allocated to the Warrants. 
  
 (d) The Issuer shall execute and deliver a Note to each New Purchaser. Additional Notes shall be issued to the Existing
Purchasers pursuant to the Exchange Agreement. Each Note (regardless of the document of issuance) shall represent the obligation of the Issuer to repay the principal amount set forth thereon, together with interest thereon as prescribed in
Section 2.03. Each Purchaser’s Commitment is expressed in U.S. dollars and as a percentage of the whole as of the Closing as set forth in Schedule I hereto. 
  

 26 








 (e) The Issuer shall execute and deliver to each New Purchaser the number of Warrants specified opposite
such New Purchaser’s name on Schedule I hereto. The Warrants and the Warrant Shares are subject to the terms of, and are entitled to all the rights and benefits set forth in, the Warrant Documents. 
  
 (f) The aggregate outstanding principal balance of the Notes shall be due and
payable in full in immediately available funds on the Termination Date, if not sooner paid in full. No payment with respect to the Notes may be reborrowed. 
  
 (g) Each Purchaser’s obligations under this Agreement is several and not joint and each Purchaser shall have no obligation or liability to any Person
for the performance or non-performance by any other Purchaser hereunder. 
  
 (h) Each payment of principal with respect to the Notes shall be paid to each Purchaser in accordance with Section 2.05, ratably in proportion to each such Purchaser’s respective percentage of the
then outstanding principal amount of the Notes. 
  
 (i) The Notes
shall be secured by the Collateral as provided in the Collateral Documents. In addition, payment of the aggregate principal amount of and interest on the Notes and all other Obligations shall be unconditionally guaranteed by the Subsidiary
Guarantors pursuant to Article VII. 
  
 Section 2.02
Closing. The closing of the Securities Purchase shall be made at the offices of Skadden, Arps, Slate, Meagher & Flom LLP at Four Times Square, New York, NY 10036, commencing at 10:00 A.M. local time on the Closing Date by wire
transfer of immediately available U.S. funds payable to the order of the Issuer against delivery of the Securities in the aggregate amount of the Purchase Price (the “Closing”). 
  
 Section 2.03 Interest. 
  
 (a) Scheduled Interest. The Issuer shall pay interest on the unpaid
principal amount of each Note owing to each Purchaser from the date of such Note until such principal amount shall be paid in full, as follows (i) at an adjustable rate of cash interest equal to LIBOR plus 7.5% per annum, payable
quarterly; provided, that, if such cash interest rate shall at any time exceed 12.0% per annum, any amount in excess of 12.0% may, at the Issuer’s option, be payable-in-kind by delivery of additional Notes (valued at 100% of the
principal amount thereof, which shall be rounded upward to the nearest $1.00) in lieu of cash (“PIK”), or in cash; plus (ii) PIK interest at 4.5% per annum. Any and all PIK interest shall be added to the principal
of the Notes quarterly on the applicable Interest Payment Date. The Issuer shall pay cash interest to the Purchasers, or issue additional Notes in lieu of cash interest payments as provided herein, quarterly in arrears on each Interest Payment Date;
provided, however, that any delay or failure by the Issuer to issue and deliver additional Notes quarterly in lieu of cash interest shall not effect the obligation of the Issuer therefor and this Agreement and the Purchasers’ then
outstanding Notes shall constitute satisfactory evidence of any such PIK interest due and owing to each Purchaser. Interest shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from the date of the
original issuance of the Notes. 
  

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 (b) Default Interest. Upon the occurrence and during the continuance of a Default, the Issuer
shall pay interest on (i) the unpaid principal amount of each Note owing to each Purchaser, payable in arrears on the dates referred to in subsection (a) of this Section 2.03 and on demand, at a rate per annum equal at all
times to 2.0% per annum above the rate per annum required to be paid on such Note pursuant to subsection (a) of this Section 2.03 to the fullest extent permitted by law and to the fullest extent permitted by law, the amount of
any interest, fee or other amount payable under the Purchase Documents that is not paid when due, from the date such amount shall be due until such amount shall be paid in full, payable in arrears on the date such amount shall be paid in full and on
demand, at a rate per annum equal at all times to 2.0% per annum above the rate per annum required to be paid, in the case of interest, on the Notes on which such interest has accrued pursuant to subsection (a) of this
Section 2.03. 
  
 Section 2.04 Fees.
(a) Concurrently with the Closing, the Issuer shall pay to the Agent (or its designees) a non-refundable financing enhancement fee in the amount agreed to between the Issuer and the Agent in that certain Fee Agreement, dated as of
March 31, 2005. 
  
 (b) Concurrently with the Closing and on
each July 26th thereafter through the Termination Date, the Issuer shall pay to the Agent (or its designees) a
non-refundable administrative fee equal to $12,500 per year. 
  
 All fees paid
pursuant to this Section 2.04 shall be fully earned and non-refundable as of the date of payment thereof. 
  
 Section 2.05 Payments and Computations on the Notes. 
  

(a) The Issuer shall make each payment hereunder and under the Notes, irrespective of any right of counterclaim or set-off (except as otherwise
provided herein), not later than 11:00 A.M. (New York City time) on the day when due in U.S. dollars to each Purchaser at the Purchaser’s account in same day funds, with payments being received by any Purchaser after such time being deemed to
have been received on the next succeeding Business Day. 
  
 (b)
All computations of interest on the Notes and fees shall be made by the Agent on the basis of a year of 360 days for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest, fees
or commissions are payable. Each determination by the Agent of an interest rate, fee or commission hereunder shall be conclusive and binding for all purposes, absent manifest error. 
  
 (c) Whenever any payment hereunder or under the Notes shall be stated to be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or commitment fee, as the case may be; provided, however, that, if such extension
would cause payment of interest or principal to be made in the next following calendar month, such payment shall be made on the next preceding Business Day. 
  

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 (d) Subject to Section 2.05(e), payments of principal, Prepayment Fees, if any, and interest
becoming due and payable on the Notes shall be made in New York, New York at the principal office of the Bank of New York in such jurisdiction. The Issuer may at any time, by notice to each Purchaser and the Agent, change the place of payment of the
notes so long as such place of payment shall be either the principal office of the Issuer in such jurisdiction or the principal office of a bank or trust in such jurisdiction. 
  
 (e) So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding anything contained in such
Note or Section 2.05(d) to the contrary, the Issuer will pay all sums becoming due on such Note for principal, Prepayment Fees, if any, and interest by the method and at the Principal Lending Office address specified for such purpose
opposite such Purchaser’s name in Schedule I, or by such other method or at such other address as such Purchaser shall have from time to time specified to the Issuer in writing for such purpose, without the presentation or surrender of
such Note or the making of any notation thereon, except that upon written request of the Issuer made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Purchaser shall surrender such Note for cancellation,
reasonably promptly after any such request, to the Issuer at its principal executive office or at the place of payment most recently designated by the Issuer pursuant to Section 2.05(d). Prior to any sale or other disposition of any Note
held by a Purchaser or its nominee such Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid thereon or surrender such Note to the Issuer in exchange for a new
Note or Notes pursuant to Sections 2.11 and 2.12. 
  
 Section 2.06 Taxes. 
  
 (a) Any and all
payments by or for the account of any Obligor hereunder, or in respect of the Notes, the Warrants or any other Purchase Document, shall be made free and clear of and without deduction for any and all present or future taxes, levies, imposts,
deductions, charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Purchaser, the Agent and the Collateral Agent, taxes that are imposed on its overall net income by the United States and taxes that
are imposed on its overall net income (and franchise taxes imposed in lieu thereof) by the state or foreign jurisdiction under the laws of which such Purchaser, the Agent or the Collateral Agent, as the case may be, is organized or any political
subdivision thereof and, in the case of each Purchaser, taxes that are imposed on its overall net income (and franchise taxes imposed in lieu thereof) by the state or foreign jurisdiction of such Purchaser’s Applicable Lending Office or any
political subdivision thereof (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of payments hereunder or under the Notes or the Warrants being hereinafter referred to as
“Taxes”). If an Obligor shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder or under any Note, the Warrants, or other Purchase Documents to Purchaser, the Agent, or the Collateral Agent
(i) the sum payable by such Obligor shall be increased as may be necessary so that after such Obligor, the Agent and the Collateral Agent have made all required deductions (including deductions applicable to additional sums payable under this
Section 2.06) such Purchaser, the Agent or the Collateral Agent, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Obligor shall make all such deductions and
(iii) such Obligor shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. 
  

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 (b) In addition, except as expressly provided in the Warrant Agreement, each Obligor shall pay any
present or future stamp, documentary, excise, property or similar taxes, charges or levies that arise from any payment made hereunder or under the Notes, the Warrants, or other Purchase Documents or from the execution, delivery or registration of,
performance under, or otherwise with respect to, this Agreement, the Notes, the Warrants, or any other Purchase Document (“Other Taxes”); provided that the Obligors shall not be required to pay any tax or other charge which
may be payable, if any, in respect of any transfer involved in the issue of any Warrant or any Warrant Shares in a name other than that of the registered holder of a Warrant surrendered upon exercise of a Warrant. 
  
 (c) Each Obligor shall indemnify each Purchaser, the Agent and the Collateral
Agent for and hold them harmless against the full amount of Taxes and Other Taxes, and for the full amount of taxes of any kind imposed by any jurisdiction on amounts payable under this Section 2.06, imposed on or paid by such Purchaser,
the Agent or the Collateral Agent (as the case may be) and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30 days from the date such
Purchaser, the Agent or the Collateral Agent (as the case may be) makes written demand therefor. 
  
 (d) Within 30 days after the date of any payment of Taxes, the relevant Obligor shall furnish to the Agent, at its address referred to in
Section 10.02, the original or a certified copy of a receipt evidencing such payment. In the case of any payment hereunder or under the Notes, the Warrants, or other Purchase Documents by or on behalf of such Obligor through an account
or branch outside the United States or by or on behalf of such Obligor by a payor that is not a United States person, if such Obligor determines that no Taxes are payable in respect thereof, such Obligor shall furnish, or shall cause such payor to
furnish, to the Agent, at such address, an opinion of counsel acceptable to the Agent stating that such payment is exempt from Taxes. For purposes of subsections (d) and (e) of this Section 2.06, the terms “United
States” and “United States person” shall have the meanings specified in Section 7701 of the Internal Revenue Code. 
  
 (e) Each Purchaser organized under the laws of a jurisdiction outside the United States shall, on or prior to the date of its execution and delivery of
this Agreement in the case of each initial Purchaser, as the case may be, and on the date of the Assignment and Acceptance pursuant to which it becomes a Purchaser in the case of each other Purchaser, and from time to time thereafter as requested in
writing by the relevant Obligor (but only so long thereafter as such Purchaser remains lawfully able to do so), provide each of the Agent and each Obligor with two original Internal Revenue Service forms W-8ECI or W-8 or W-8BEN (and, if applicable
to the exemption claimed by a Purchaser that delivers a form W-8 or W-8BEN, a certificate representing that such Purchaser is not a “bank” for purposes of Section 881(c) of the Internal Revenue Code, is not a 10-percent shareholder,
within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code, of the Obligor and is not a controlled foreign corporation related to the Obligor, within the meaning of Section 864(d)(4) of the Internal Revenue Code), as
appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying that such Purchaser is exempt from or entitled to a reduced rate of United States withholding tax on payments pursuant to this Agreement or the Notes
(or, in the case of a Purchaser providing a form W-8 or W-8BEN, certifying that such Purchaser is a 

  

 30 








 
foreign corporation, partnership, estate or trust). If the forms provided by a Purchaser at the time such Purchaser first becomes a party to this Agreement
indicate a United States interest withholding tax rate in excess of zero, withholding tax at such rate shall be considered excluded from Taxes unless and until such Purchaser provides the appropriate forms certifying that a lesser rate applies,
whereupon withholding tax at such lesser rate only shall be considered excluded from Taxes for periods governed by such forms; provided, however, that if, at the effective date of the Assignment and Acceptance pursuant to which a Purchaser
becomes a party to this Agreement, the Purchaser assignor was entitled to payments under subsection (a) of this Section 2.06 in respect of United States withholding tax with respect to interest paid at such date, then, to such
extent, the term Taxes shall include (in addition to withholding taxes that may be imposed in the future or other amounts otherwise includable in Taxes) United States withholding tax, if any, applicable with respect to the Purchaser assignee on such
date. If any form or document referred to in this subsection (e) requires the disclosure of information, other than information necessary to compute the tax payable and information required on the date hereof by Internal Revenue Service form
W-8, W-8BEN or W-8ECI (or the related certificate described above), that the Purchaser reasonably considers to be confidential, the Purchaser shall give notice thereof to the Obligor and shall not be obligated to include in such form or document
such confidential information. 
  
 (f) For any period with respect
to which a Purchaser has failed to provide the relevant Obligor with the appropriate form described in subsection (e) above (other than if such failure is due to a change in law occurring after the date on which a form originally was
required to be provided or if such form otherwise is not required under subsection (e) above), such Purchaser shall not be entitled to indemnification under subsection (a) or (c) of this Section 2.06 with respect to Taxes
imposed by reason of such failure; provided, however, that should a Purchaser become subject to Taxes because of its failure to deliver a form required hereunder, the relevant Obligor shall take such steps as such Purchaser shall
reasonably request to assist such Purchaser to recover such Taxes. 
  
 (g) The Obligor may replace any Purchaser that has requested additional amounts under this subsection (a) of Section 2.06, by written notice to such Purchaser and the Agent and identifying one or more persons each of which
shall be reasonably acceptable to the Agent (each, a “Replacement Purchaser”, and collectively, the “Replacement Purchasers”) to replace such Purchaser (the “Replaced Purchaser”); provided,
that (i) the notice from such Obligor to the Replaced Purchaser and the Agent provided for herein above shall specify an effective date for such replacement (the “Replacement Closing Date”), which shall be at least five
(5) Business Days after such notice is given and (ii) as of the relevant Replacement Closing Date, each Replacement Purchaser shall enter into an Assignment and Acceptance with the Replaced Purchaser, pursuant to which such Replacement
Purchasers collectively shall acquire, in such proportion among them as they may agree with such Obligor and the Agent, all (but not less than all) of the outstanding Notes of the Replaced Purchaser, and, in connection therewith, shall pay to the
Replaced Purchaser, as the purchase price in respect thereof, an amount equal to the sum as of the Replacement Closing Date, without duplication, of (x) the unpaid principal amount of, and all accrued but unpaid interest on, all outstanding
Notes of the Replaced Purchaser and (y) the Replaced Purchaser’s ratable share of all accrued but unpaid fees owing to the Replaced Purchaser hereunder. 
  

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 Section 2.07 Sharing of Payments, Etc. If any Purchaser shall obtain at any time any payment
(whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise, other than as a result of an assignment pursuant to Section 2.11) (a) on account of Obligations due and payable to such Purchaser hereunder
and under the Notes at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations due and payable to such Purchaser at such time to (ii) the aggregate amount of the Obligations due and
payable to all Purchasers hereunder and under the Notes at such time) of payments on account of the Obligations due and payable to all Purchasers hereunder and under the Notes at such time obtained by all the Purchasers at such time or (b) on
account of Obligations owing (but not due and payable) to such Purchaser hereunder and under the Notes at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations owing to such Purchaser at
such time to (ii) the aggregate amount of the Obligations owing (but not due and payable) to all Purchasers hereunder and under the Notes at such time) of payments on account of the Obligations owing (but not due and payable) to all Purchasers
hereunder and under the Notes at such time obtained by all of the Purchasers at such time, such Purchaser shall forthwith notify the Issuer and the Agent and promptly return such overpayment to the Issuer to be properly applied. 
  
 Section 2.08 Prepayments. 
  
 (a) Mandatory Prepayments. 
  
 (i) Subject to the terms of the Intercreditor and
Subordination Agreements, the Issuer shall, within two Business Days after the date of receipt of Net Cash Proceeds in excess of $5,000,000 in the aggregate in any fiscal year by any Obligor from (A) the sale, lease, transfer or other
disposition of any assets of any Obligor or any Subsidiary of an Obligor (other than leases in the ordinary course of business or any sale, lease, transfer or other disposition of assets pursuant to clause (i), (ii), (iii), (v), (vi), (vii) or
(ix) of Section 5.02(e)) prepay an aggregate principal amount of the Notes equal to 100% of the amount of such Net Cash Proceeds; provided, that no portion of the Net Cash Proceeds retained by the Obligors pursuant to this
subsection (i) shall be used by any Obligor in connection with any merger with any Person or acquisition of assets of any Person (other than assets acquired in the ordinary course of such Obligors’ business); and (B) any Extraordinary
Receipt received by, or paid to, or for the account of, any Obligor or any Subsidiary of an Obligor and not otherwise included in clause (A) above, prepay an aggregate principal amount of the Notes in an amount equal to 100% of the amount of
such Net Cash Proceeds. 
  
 (ii) Subject to the
terms of the Intercreditor and Subordination Agreements, the Issuer shall, within two Business Days after the date of receipt thereof, prepay the Notes in an amount equal to 100% of the proceeds, if any, received from an Obligor’s issuance of
Debt, other than Debt permitted to be Incurred under this Agreement that is Incurred pursuant to the terms of (A) the Purchase Documents, (B) the First Lien Documents and (C) the Second Lien Loan Documents. 
  
 All mandatory prepayments under this Section 2.08 shall be made together with
accrued interest to the date of such prepayment on the principal amount prepaid, shall include the Prepayment 

  

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Fee set forth in Section 2.09 for the applicable period, and shall be applied to each Purchaser in accordance with Section 9.01.

  
 (b) Optional Prepayment. Subject to the terms of the
Intercreditor and Subordination Agreements, the Notes shall be pre-payable at the option of the Issuer, in whole or in part, in increments of not less than $5,000,000, at any time at a prepayment price determined in accordance with the schedule set
forth in Section 2.09. If the Notes are prepaid in part, prepayment on account of the Notes shall be allocated in accordance with Section 9.01. 
  
 Section 2.09 Prepayment Price Schedule. Any Notes to be pre-paid in accordance with Section 2.08
shall be prepaid at a price determined in accordance with the following schedule if pre-paid during the twelve-month period beginning on July 31 of the years indicated below (or as otherwise indicated): 
  

				
	 	  	Prepayment Price	 
	 Year

	  	 As a % of Principal
 Amount

	 
	 2005
	  	108	%
	 2006
	  	103	%
	 2007
	  	102	%
	 July 31, 2008, through April 2, 2009
	  	101	%
	 From April 2, 2009, through the Termination Date
	  	100	%

  
 The portion of the
prepayment price at which the Notes must be prepaid (as set forth above) in excess of the principal amount thereof is referred to as the “Prepayment Fee”. If the Obligations are accelerated for any reason, including, without
limitation, because of default (including acceleration by operation of law or otherwise), the Prepayment Fee set forth above shall also be due and payable as though such indebtedness was voluntarily prepaid and shall constitute part of the
Obligations in view of the impracticability and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of each Purchaser’s lost profits as a result thereof. The Prepayment Fee
shall be presumed to be the liquidated damages sustained by each Purchaser as the result of such early termination and the Issuer agrees that payment of the Prepayment Fee is reasonable under the circumstances currently existing. THE ISSUER
EXPRESSLY WAIVES THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW WHICH PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING PREPAYMENT FEE (WHETHER OR NOT DEEMED TO BE LIQUIDATED DAMAGES). 

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 The Issuer expressly agrees that: (i) the Prepayment Fee provided for herein is reasonable;
(ii) the Prepayment Fee shall be payable notwithstanding the then prevailing market rates at the time payment is made; (iii) there has been a course of conduct between Purchasers and the Issuer giving specific consideration in this
transaction for such agreement to pay the Prepayment Fee; and (iv) the Issuer shall be estopped hereafter from claiming differently than as agreed to in this paragraph. The Issuer expressly acknowledges that its agreement to pay the Prepayment
Fee to Purchasers as herein described is a material inducement to Purchasers to purchase the Notes. 
  
 Section 2.10 Registration of Notes. The Issuer shall keep at its principal executive office a register for the registration and registration
of transfers of Notes. The name, email address and address of each holder of one or more Notes, each transfer thereof and the name, email address and address of each Transferee of one or more Notes shall be registered in such register. Prior to due
presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Issuer shall not be affected by any notice or knowledge to
the contrary. The Issuer shall give to the Agent promptly upon request therefor, a complete and correct copy of the names, addresses, and email addresses of contact persons for all registered Purchasers. 
  
 Section 2.11 Transfer and Exchange of Notes. Notwithstanding
anything else herein to the contrary, any Purchaser, may from time to time, at its option, sell, assign, transfer, negotiate or otherwise dispose of all or a portion of one or more of its Notes (including the Purchaser’s interest in this
Agreement and the other Purchase Documents) to any Eligible Assignee. In the event of any such sale, transfer or other disposition, the Purchaser and relevant Transferee shall execute and deliver to the Agent and the Issuer an Assignment and
Acceptance Agreement evidencing such sale, assignment, transfer or other disposition and the Issuer shall thereafter promptly register the Transferee thereof as the registered holder of the transferred Notes (provided, that any such Transferee shall
be deemed a registered holder of the applicable Notes and a “Transferee” hereunder in the event of the Issuer’s failure to so register any such Transferee after it has received written notice of any such transfer) and
Schedule I shall be automatically amended to reflect such transfer and any new Transferee and Notes held thereby. Upon surrender of any Note at the principal executive office of the Issuer 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 his attorney duly authorized in writing and accompanied by the address for
notices of each transferee of such Note or part thereof), the Issuer shall execute and deliver, at the Issuer’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate
principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Exhibit A. Each such new Note shall be
dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Issuer may require payment of a sum sufficient to cover
any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than (i) $400,000 at any time within five Business Days of the Closing Date, and (ii) $1,000,000
at any time thereafter, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $1,000,000, 

  

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provided further that Notes may be transferred in any denomination from a group of Affiliated holders to any Eligible Assignee or group of Eligible Assignees
so long as (i) in respect of a transfer to a group of Eligible Assignees, such Eligible Assignees shall be Affiliates of each other, and (ii) the aggregate principal amount of Notes concurrently transferred shall be $1,000,000 or more. Any
Transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representations set forth in Section 4.02. 
  
 Section 2.12 Replacement of Notes. Upon receipt by the Issuer of evidence reasonably satisfactory to it of the
ownership of and the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of such ownership and such loss, theft, destruction or mutilation),
and 
  
 (a) in the case of loss, theft or destruction, of
indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Purchaser or another holder of a Note with a minimum net worth of at least $10,000,000 in excess of the outstanding principal
amount of such Note, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or 
  
 (b) in the case of mutilation, upon surrender and cancellation thereof, the Issuer at its own expense shall execute and deliver, in lieu thereof, a new
Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no interest shall have been paid thereon.

  
 ARTICLE III. CONDITIONS OF SECURITIES PURCHASE

  
 Section 3.01 Conditions Precedent to the Closing
Date. The Closing is subject to the satisfaction of the following conditions precedent: 
  
 (a) The Closing shall occur on or before July 31, 2005. 
  
 (b) The Agent shall have received the following, each dated the Closing Date (unless otherwise specified), in form and substance satisfactory to the Agent (unless otherwise specified) and (except for the Notes) in
sufficient copies for each Purchaser: 
  
 (i) The
Notes payable to the order of the Purchasers and copies of the Warrants countersigned by the Warrant Agent (as defined in the Warrant Agreement). 
  
 (ii) A security agreement in substantially the form of Exhibit D hereto (together with each other security agreement and security
agreement supplement delivered pursuant to Section 5.01(j), the “Security Agreement”), duly executed by each Obligor, together with: 
  
 (A) acknowledgment copies or stamped receipt copies of proper financing statements, duly filed on or before
the Closing Date under the Uniform Commercial Code of all jurisdictions that the Agent may reasonably deem necessary or desirable in order to perfect and protect the third priority liens 

  

 35 








 
and security interests created under the Security Agreement, covering the Collateral described in the Security Agreement, 
  
 (B) completed requests for information, dated on or before
the Closing Date, listing the financing statements referred to in clause (B) above and all other effective financing statements filed in the jurisdictions referred to in clause (B) above that name any Obligor as debtor, together with
copies of such other financing statements, 
  
 (C) evidence of the completion of all other recordings and filings of or with respect to the Security Agreement that the Agent may reasonably deem necessary or desirable in order to perfect and protect the Liens created thereby, 

 
 (D) copies of the Assigned Agreements referred to in the
Security Agreement, and 
  
 (E) evidence that all
other action that the Agent may deem reasonably necessary or desirable in order to perfect and protect the third priority liens and security interests created under the Security Agreement has been taken (including, without limitation, receipt of
duly executed payoff letters, UCC-3 termination statements, landlords’, mortgagees’ and bailees’ waiver and consent agreements and account control and cash management agreements in form and substance satisfactory to the Agent).

  
 (iii) The Intercreditor and Subordination
Agreements in substantially the form of Exhibit E hereto, duly executed by each of the parties thereto. 
  
 (iv) Certified copies of the resolutions of the Board of Directors of each Obligor approving the Transactions and each Purchase Document
to which it is or is to be a party, and of all documents evidencing other necessary corporate action with respect to the Transactions and each Purchase Document to which it is or is to be a party. 
  
 (v) A copy of a certificate of the Secretary of State of the
jurisdiction of incorporation of each Obligor, dated reasonably near the date of the Closing Date, certifying (A) as to a true and correct copy of the charter of such Obligor and each amendment thereto on file in such Secretary’s office
and (B) that (1) such amendments are the only amendments to such Obligor’s charter on file in such Secretary’s office, (2) to the extent that the Secretary of State of the applicable jurisdiction of incorporation provides
such a certification, such Obligor has paid all franchise taxes to the date of such certificate and (C) such Obligor is duly incorporated and in good standing or presently subsisting under the laws of the State of the jurisdiction of its
incorporation. 
  
 (vi) A copy of a certificate
of the Secretary of State in each jurisdiction in which each Obligor is qualified to do business, dated reasonably near the date of the Closing Date, stating that such Obligor is duly qualified and in good standing as a foreign corporation in such
State and has filed all annual reports required to be filed to the date of 

  

 36 








 
such certificate except where the failure to be so qualified and in good standing does not have a Material Adverse Effect. 
  
 (vii) A certificate of each Obligor, signed on behalf of
such Obligor by its President or a Vice President and its Secretary or any Assistant Secretary, dated the Closing Date (the statements made in which certificate shall be true on and as of the Closing Date), certifying as to (A) the absence of
any amendments to the charter of such Obligor since the date of the Secretary of State’s certificate referred to in Section 3.01(b)(vi), (B) a true and correct copy of the bylaws of such Obligor as in effect on the date on
which the resolutions referred to in Section 3.01(b)(iv) were adopted and on the Closing Date, (C) the due incorporation and good standing or valid existence of such Obligor as a corporation organized under the laws of the
jurisdiction of its incorporation, and the absence of any proceeding for the dissolution or liquidation of such Obligor, (D) the truth of the representations and warranties contained in the Purchase Documents as though made on and as of the
Closing Date, (E) the absence of any event occurring and continuing, or resulting from entering into this Agreement, that constitutes a Default and (F) the absence of any event occurring and continuing that constitutes a Default (as
defined in the Third Amended ITCD Credit Agreement) under the Third Amended ITCD Credit Agreement or a statement as to such Default and a reasonably detailed description thereof. 
  
 (viii) A certificate of the Secretary or an Assistant Secretary of each Obligor certifying the names and
true signatures of the officers of such Obligor authorized to sign each Purchase Document to which it is or is to be a party and the other documents to be delivered hereunder and thereunder. 
  
 (ix) Evidence of insurance naming the Collateral Agent as
additional insured and loss payee with such responsible and reputable insurance companies or associations and evidence of directors and officers’ liability insurance naming the individuals of the Agent who are elected to the board of directors
of the Parent as additional insureds and loss payees with such responsible and reputable insurance companies or associations. 
  
 (x) Favorable opinions of counsel for the Obligors in form and substance reasonably satisfactory to the Agent, in the form of Exhibit
F hereto and as to such other matters as any Purchaser through the Agent may reasonably request. 
  
 (xi) Such other certificates and documents as the Agent may reasonably request. 
  
 (xii) (A) American Land Title Association Extended
Coverage mortgagee title insurance policies or unconditional commitments therefor (the “Closing Date Mortgage Policies”) issued by the Title Company with respect each of the real property assets listed in Schedule 4.01(w)
that shall be subject to a Closing Date Mortgage (each, a “Closing Date Mortgaged Property” and, collectively, the “Closing Date Mortgaged Properties”), in amounts not less than the respective amounts designated
therein with respect to any particular Closing Date Mortgaged Property, insuring fee 

  

 37 








 
simple title to, or a valid leasehold interest in, each such Closing Date Mortgaged Property vested in such Obligor and assuring the Collateral Agent that
the applicable Closing Date Mortgages create valid and enforceable third priority mortgage Liens on the respective Closing Date Mortgaged Properties encumbered thereby which Closing Date Mortgage Policies (1) shall include an endorsement for
mechanics’ liens and for any other matters reasonably requested by the Collateral Agent and (2) shall provide for affirmative insurance and such reinsurance as the Collateral Agent may reasonably request, all of the foregoing in form and
substance reasonably satisfactory to the Collateral Agent; and (B) evidence satisfactory to the Collateral Agent that such Obligor has (1) delivered to the Title Company all certificates and affidavits required by the Title Company in
connection with the issuance of the Closing Date Mortgage Policies and (2) paid to the Title Company all expenses and premiums of the Title Company in connection with the issuance of the Closing Date Mortgage Policies and to the appropriate
governmental authorities all recording and stamp taxes (including mortgage recording and intangible taxes) payable in connection with recording the Closing Date Mortgages in the appropriate real estate records. 
  
 (xiii) With respect to each Closing Date Mortgaged Property,
a title report issued by the Title Company with respect thereto, dated not more than 30 days prior to the Closing Date and satisfactory in form and substance to the Collateral Agent. 
  
 (xiv) No Event of Default or event that, with notice and/or the passage of time, could constitute, an Event
of Default, shall have occurred. 
  
 (xv) The
Obligors shall have entered into the Mortgages (the “Closing Date Mortgages”), in form and substance reasonably acceptable to the Collateral Agent, as the Collateral Agent may deem necessary or desirable in order to ensure the grant
of a security interest in the real property Collateral covered thereby in order to secure the full amount of the Obligations. 
  
 (c) There shall exist no action, suit, investigation, litigation or proceeding affecting any Obligor or any of its Subsidiaries pending or threatened
before any court, governmental agency or arbitrator that could reasonably be expected to have a Material Adverse Effect other than the matters described on Schedule 4.01(f) hereto (the “Disclosed Litigation”). 
  
 (d) All governmental and third party consents and approvals set forth on Part
I of Schedule 4.01(d) in connection with the Transactions shall have been obtained (without the imposition of any conditions that are not reasonably acceptable to the Purchasers) and shall remain in effect (other than any consents and
approvals the absence of which, either individually or in the aggregate, would not have a Material Adverse Effect); all applicable waiting periods in connection with the Transactions shall have expired without any action being taken by any competent
authority (other than any action which either individually or in the aggregate with all such actions would not reasonably be expected to have a Material Adverse Effect), and no law or regulation shall be applicable in the reasonable judgment of the
Purchasers in each case that restrains, prevents or imposes materially adverse conditions upon the Transactions or the rights of the Obligors or their Subsidiaries freely to transfer or otherwise dispose of, or to create any Lien on, any properties
now owned or hereafter acquired by any of them. 
  

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 (e) All Pre-Closing Date Information shall be true, correct and complete in all material aspects as of
the dates specified therein and no additional information shall have come to the attention of the Obligors that could reasonably be expected to have a Material Adverse Effect. 
  
 (f) The Issuer shall have paid (or made provision therefor in a manner reasonably satisfactory to the Agent) (i) all
accrued fees and out-of-pocket expenses of the Agents and (ii) the fees set forth in Section 2.04 (including the accrued reasonable and documented fees and expenses of legal counsel and financial advisors, including Milbank, Tweed,
Hadley & McCloy LLP and Swidler Berlin LLP). 
  
 (g) The
Purchasers shall be reasonably satisfied that (i) the Parent and its Subsidiaries shall be able to meet their respective obligations under all employee and retiree welfare plans, (ii) the employee benefit plans of the Parent and its ERISA
Affiliates are, in all material respects, funded in accordance with the minimum statutory requirements, (iii) no “reportable event” (as defined in ERISA, but excluding events for which reporting has been waived) has occurred as to any
such employee benefit plan and (iv) no termination of, or withdrawal from, any such employee benefit plan has occurred or is contemplated that could reasonably be expected to result in a material liability. 
  
 (h) That certain Third Amended and Restated Credit Agreement, dated as of
March 29, 2005, by and among the Parent, the Issuer, the Subsidiary Guarantors thereunder, the lenders from time to time party thereto and Wells Fargo Bank, N.A., as administrative agent and collateral agent, shall have been extinguished and
all security interests released. 
  
 (i) The Second Lien Lenders
shall have approved this Agreement which approval shall be in form and substance reasonably acceptable to the Purchasers. 
  
 (j) The Amended Second Lien Credit Agreement shall have been amended to the reasonable satisfaction of the Agent to permit the issuance of the Notes
hereunder and to incorporate other changes related to the transactions contemplated hereby. 
  
 (k) The First Lien Documents shall have been executed and delivered in form and substance reasonably acceptable to the Note Purchasers (as defined thereunder), and the First Lien Lenders shall have advanced to the
Obligors an aggregate principal amount of not less than $209,000,000 pursuant to the First Lien Documents. 
  
 (l) The obligations under the Original Third Lien Credit Agreement shall have been exchanged for Notes pursuant to the Exchange Agreement and no amount of
Notes greater than the sum of (x) $50,000,000 plus (y) the aggregate amount of capitalized PIK interest on the Existing Third Lien Notes through the Closing Date, shall be outstanding immediately after the Closing. 
  
 (m) The parties shall have executed and delivered the Warrants, in form and
substance reasonably acceptable to the New Purchasers and registered in such names as shall be satisfactory to the New Purchasers, and the issuance of such Warrants shall not have triggered any preemptive rights of holders of the Obligors’
outstanding securities, or such rights shall have been waived to the satisfaction of the New Purchasers. 
  

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 (n) The Agent shall have received the unaudited Consolidated balance sheet of the Obligors as at
March 31, 2005, and the related Consolidated statement of income and Consolidated statement of cash flows of the Obligors for the month then ended and the Projections certified by the Chief Executive Officer and Chief Financial Officer of the
Parent as having been prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such information. 
  
 (o) There shall have been no Material Adverse Change since December 31,
2004, it being understood that the Defaults or Events of Default set forth on Schedule VI hereto shall not be deemed to have a Material Adverse Change. 
  

(p) The Obligors shall have delivered to the Agent favorable opinions, in form and substance satisfactory to the Agent, of counsel to those Subsidiary
Guarantors organized in Alabama, North Carolina and Virginia. 
  
 (q) The purchase of the Securities by the Purchasers shall (i) be permitted by the laws and regulations of each jurisdiction to which the Purchasers are subject, (ii) not violate any Applicable Law (including, without limitation,
Regulation U, T or X of the Board of Governors of the Federal Reserve System), (iii) not require registration or qualification of the Notes under any Applicable Law (including, without limitation, any applicable federal or state securities
laws), and (iv) not subject the New Purchasers to any tax, penalty or liability under or pursuant to any Applicable Law which was not in effect on the date hereof. If requested by the New Purchasers or the Agent, the New Purchasers or the Agent
shall have received an officer’s certificate certifying as to such matters of fact as the New Purchasers or the Agent may reasonably specify to enable the New Purchasers or the Agent to determine whether such purchase is permitted. 

 
 (r) The Agent shall have received an officer’s certificate duly
executed by the Chief Financial Officer of the Issuer in substantially the form of Exhibit I hereto (a “Solvency Certificate”) (i) to the effect that the Parent and its Subsidiaries shall be Solvent upon the consummation
of the transactions contemplated herein and in the other Purchase Documents; and (ii) containing such other statements with respect to the solvency of the Parent and its Subsidiaries and matters related thereto as the Agent or the Purchasers
shall request. 
  
 ARTICLE IV. REPRESENTATIONS AND
WARRANTIES 
  
 Section 4.01 Representations and
Warranties of the Obligors. The Obligors represent and warrant, jointly and severally, to the Agents and the Purchasers as follows as of the date hereof and the Closing Date: 
  
 (a) Each Obligor and each of its respective Subsidiaries (i) is a corporation duly organized, validly existing and in
good standing under the laws of the jurisdiction of its incorporation, (ii) is duly qualified and in good standing as a foreign corporation (except as set forth on Schedule 4.01(a)(ii) hereto) in each other jurisdiction in which it owns
or leases property or in which the conduct of its business requires it to so qualify or be licensed except where the failure to so qualify or be licensed would not be reasonably likely to have a Material Adverse 

  

 40 








 
Effect and (iii) has all requisite corporate power and authority to own or lease and operate its properties and to carry on its business as now
conducted and as currently proposed to be conducted. All of the outstanding Equity Interests in the Issuer have been duly authorized, validly issued, are fully paid and non-assessable and are owned by the Parent free and clear of all Liens, except
those created under the Purchase Documents or as set forth on Schedule 4.01(v). 
  
 (b) Set forth on Schedule 4.01(b) hereto is a complete and accurate list of all Subsidiaries of each Obligor as of the Closing Date showing as of the date hereof (as to each such Subsidiary) the jurisdiction of
its incorporation, its directors and senior officers, the number of shares of each class of its Equity Interests authorized, and the number outstanding, on the date hereof and the percentage of each such class of its Equity Interests owned (directly
or indirectly) by such Obligor and the number of shares covered by all outstanding options, warrants, rights of conversion or purchase and similar rights at the date hereof. All of the outstanding Equity Interests in each Obligor’s Subsidiaries
have been duly authorized, validly issued, are fully paid and non-assessable and are owned by such Obligor or one or more of its Subsidiaries free and clear of all Liens, except those created under the Purchase Documents or as set forth on
Schedule 4.01(v). 
  
 (c) The execution, delivery and
performance by each Obligor of each Purchase Document to which it is or is to be a party, and the consummation of the Transactions, are within such Obligor’s corporate powers, have been duly authorized by all necessary corporate action, and do
not (i) contravene such Obligor’s charter or bylaws, (ii) violate any law, rule, regulation (including, without limitation, Regulation X of the Board of Governors of the Federal Reserve System), order, writ, judgment, injunction,
decree, determination or award, (iii) conflict with or result in the breach of, or constitute a default under, any loan agreement, indenture, mortgage, deed of trust, or material contract, lease or other instrument binding on or affecting any
Obligor, any of its Subsidiaries or any of their properties or (iv) except for the Liens created under the Purchase Documents, the Second Lien Loan Documents and the First Lien Documents, result in or require the creation or imposition of any
Lien upon or with respect to any of the properties of any Obligor or any of its Subsidiaries. No Obligor or any of its Subsidiaries is in violation of any such law, rule, regulation, order, writ, judgment, injunction, decree, determination or award
or in breach of any such contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument, the violation or breach of which could be reasonably likely to have a Material Adverse Effect. 
  
 (d) No authorization or approval or other action by, and no notice to or
filing with, any Governmental Authority or regulatory body (including, without limitation, the FCC or any applicable PUC) or any other third party is required for (i) the due execution, delivery, recordation, filing or performance by any
Obligor of any Purchase Document to which it is or is to be a party, or for the consummation of the Transactions or the incurrence of the Obligations, (ii) the grant or affirmation by any Obligor of the Liens granted by it pursuant to the
Collateral Documents, (iii) the perfection or maintenance of the Liens created under the Collateral Documents (including the third priority nature thereof), or (iv) the exercise by any Agent or any Purchaser of its rights under the
Purchase Documents or the remedies in respect of the Collateral pursuant to the Collateral Documents, except for (A) the authorizations, approvals, actions, notices and filings listed on Part I of Schedule 4.01(d) hereto, all of which
have been duly obtained, taken, given or made and are in full force and effect, (B) authorizations, approvals, 

  

 41 








 
actions, notices and filings listed in Part II of Schedule 4.01(d) hereto, which shall not have been duly obtained, taken, given or made by the
Closing Date, but shall be obtained, taken, given or made after the Closing Date in accordance with this Agreement, (C) authorizations, approvals, actions, notices and filings listed in Part III of Schedule 4.01(d) hereto, which shall
not have been duly obtained, taken, given or made by the Closing Date and (D) authorizations, approvals, actions, notices and filings which would not have a Material Adverse Effect if not made or obtained. All applicable waiting periods in
connection with the Transactions have expired without any action having been taken by any competent authority restraining, preventing or imposing materially adverse conditions upon the Transactions or the rights of the Obligors or their Subsidiaries
freely to transfer or otherwise dispose of, or to create any Lien on, any properties now owned or hereafter acquired by any of them. 
  
 (e) This Agreement has been, and each other Purchase Document when delivered hereunder shall have been, duly executed and delivered by each Obligor
thereto. This Agreement is, and each other Purchase Document when delivered hereunder shall be, the legal, valid and binding obligation of each Obligor thereto, enforceable against such Obligor in accordance with its terms. 
  
 (f) There is no action, suit, investigation, litigation or proceeding
affecting any Obligor or any of its Subsidiaries, including any Environmental Action, pending or, to any Obligor’s knowledge, threatened before any court, governmental agency or arbitrator that (i) would alone or when considered in
conjunction with any other actions, suits, investigation, litigation or proceeding affecting any Obligor, be reasonably likely to have a Material Adverse Effect other than the Disclosed Litigation or (ii) purports to affect the legality,
validity or enforceability of any Purchase Document or the consummation of Transactions, and there has been no material adverse change in the status, or financial effect on any Obligor or any of its Subsidiaries, of or as a result of the Disclosed
Litigation from that described on Schedule 4.01(f) hereto. 
  
 (g) (i) The (A) audited Consolidated balance sheet of the Obligors as at the year ended December 31, 2004 and (B) the audited related Consolidated statement of income and Consolidated statement of cash flows of the
Obligors for the year then ended, duly certified by the Chief Financial Officer of the Parent, copies of which have been furnished to the Agents and each Purchaser, fairly present the Consolidated financial condition of the Obligors, as the case may
be, as at such date and the Consolidated results of operations of the Parent and its Subsidiaries for the period ended on such date, all in accordance with GAAP applied on a consistent basis, and since December 31, 2004 there has been no
Material Adverse Change, it being understood that the events set forth on Schedule 4.01(o) hereto shall not be deemed to constitute a Material Adverse Change. 
  
 (ii) The (A) unaudited Consolidated balance sheet of the Obligors as at the three-months and quarter
ended March 31, 2005 and (B) the unaudited related Consolidated statements of income and Consolidated statements of cash flows of the Obligors for the three months and quarter then ended, copies of which have been furnished to the Agents
and each Purchaser, fairly present the Consolidated financial condition of the Obligors, as the case may be, as at such dates and the Consolidated results of operations of the Parent and its Subsidiaries for the periods ended on such dates, all in
accordance with GAAP applied on a consistent basis. 
  

 42 








 (h) No Obligor has (and shall not have following the funding of the Securities Purchase) any Contingent
Obligation, contingent liability or liability for taxes, long-term lease or unusual forward or long-term commitment that, as of the Closing Date, that is not reflected in the audited financial statements referenced in Section 4.01(g)
(except such Contingent Obligations, contingent liabilities or liabilities for taxes, long-term leases or unusual forward or long-term commitment incurred in connection with the First Lien Loan Documents, the Purchase Documents or the Second Lien
Loan Documents) or the notes thereto and that, in any such case, is material in relation to the business, operations, properties, condition (financial or otherwise) or prospects of the Parent or any of its Subsidiaries. 
  
 (i) The Consolidated balance sheets, income statements and cash flows
statements of the Obligors delivered to the Purchasers pursuant to Section 5.03(d) and the unaudited pro forma financial information about the Obligors delivered to the Purchasers in the ITC^DeltaCom 2005-2006 Management Plan dated
March 9, 2005 and the ITC^DeltaCom 2005-2007 forecast dated June 2005 (collectively, the “Projections”), were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the
conditions existing at the time of delivery of such information, and represented, at the time of delivery, the Obligors’ best estimate of the future financial performance of the Obligors. 
  
 (j) No information, exhibit or report furnished by or on behalf of any
Obligor to any Agent or any Purchaser in connection with the negotiation of the Purchase Documents or pursuant to the terms of the Purchase Documents contained any untrue statement of a material fact or omitted to state a material fact necessary to
make the statements made therein not misleading. 
  
 (k) The
Issuer is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Note have been or shall be used to purchase or carry any Margin Stock or to extend credit to others for the
purpose of purchasing or carrying any Margin Stock. 
  
 (l)
Neither any Obligor nor any of its Subsidiaries is an “investment company,” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such terms are
defined in the Investment Company Act of 1940, as amended. Neither the issuance of any Notes, nor the application of the proceeds or repayment thereof by the Issuer, nor the consummation of the other Transactions, shall violate any provision of such
Act or any rule, regulation or order of the SEC thereunder, in each case assuming the accuracy of the representations and warranties of each Purchaser in Section 4.02. 
  
 (m) No Subsidiary is a party to, or otherwise subject to, any legal restriction or any agreement (other than the Purchase
Documents, the First Lien Documents and the Second Lien Loan Documents and customary limitations imposed by Applicable Law) restricting the ability of such Subsidiary to pay dividends out of profits or make any other similar distributions of profits
to the Parent or any of its Subsidiaries that owns outstanding Capital Stock of such Subsidiary. 
  
 (n) The Collateral Documents create a valid third priority security interest in the Collateral, securing the payment of the Secured Obligations, and at
such time as all filings 

  

 43 








 
delivered to the Collateral Agent on or before the Closing Date have been duly filed in accordance with the provisions of the Security Agreement, such third
priority security interest shall be perfected. The Obligors are the legal and beneficial owners of the Collateral free and clear of any Lien, except for the Liens and security interests created or permitted under the Purchase Documents, the First
Lien Documents and the Second Lien Loan Documents. 
  
 (o) Since
December 31, 2004, no event or change has occurred that has resulted in or evidences, either in any case or in the aggregate, a Material Adverse Effect (it being acknowledged that the effect of the events described in Schedule 4.01(o)
does not constitute a Material Adverse Effect). Neither the Parent nor any of its Subsidiaries has directly or indirectly declared, ordered, paid or made, or set apart any sum or property for, any Restricted Payment or agreed to do so except as
permitted by Section 5.02(g). 
  
 (p) ERISA
Matters. 
  
 (i) Set forth on Schedule
4.01(p) hereto is a complete and accurate list of all Plans, Multiemployer Plans and Welfare Plans. The Obligors and each of their respective ERISA Affiliates are in compliance with all applicable provisions and requirements of ERISA and the
regulations and published interpretations thereunder with respect to each Plan, and have performed all their obligations under each Plan except where failure to comply or perform would not have a Material Adverse Effect. Each Plan that is intended
to qualify under Section 401(a) of the Internal Revenue Code is so qualified. 
  
 (ii) No ERISA Event (x) has occurred and is outstanding or (y) to the Obligors’ knowledge, is reasonably expected to occur,
in each case with respect to any Plan. 
  
 (iii)
Schedule B (Actuarial Information) to the most recent annual report (Form 5500 Series) for each Plan, copies of which have been filed with the Internal Revenue Service and furnished to the Purchasers, is complete and accurate and fairly presents the
funding status of such Plan, and since the date of such Schedule B there has been no material adverse change in such funding status. 
  
 (iv) Neither any Obligor nor any ERISA Affiliate has incurred or, to the Obligors’ knowledge, is reasonably expected to incur any
Withdrawal Liability exceeding $1,000,000 to any Multiemployer Plan. 
  
 (v) Neither any Obligor nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or has been terminated, within the meaning of Title IV of
ERISA, and no such Multiemployer Plan, to the Issuer’s knowledge, is reasonably expected to be in reorganization or to be terminated, within the meaning of Title IV of ERISA. 
  
 (q) Environmental. 
  
 (i) The operations and properties of each Obligor and each of its Subsidiaries comply in all material respects with all applicable
Environmental Laws and 

  

 44 








 
Environmental Permits, and all past non-compliance with such Environmental Laws and Environmental Permits has been resolved without ongoing obligations or
costs. 
  
 (ii) Each Obligor and each of its
Subsidiaries have obtained and maintain in full force and effect all material Environmental Permits required for their respective operations and the occupancy of their respective facilities, and no actions are pending, or to any Obligor’s
knowledge, threatened, to amend, challenge, revoke, cancel, restrict, terminate or appeal any such Environmental Permits. 
  
 (iii) No circumstances exist that could (A) form the basis of any material Environmental Action against any Obligor or any of its
Subsidiaries or any of their current or former properties or facilities or (B) cause any such properties or facilities to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law. 
  
 (iv) None of the properties or facilities currently or
formerly owned or operated by any Obligor or any of its Subsidiaries (A) is listed or proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list or, to any Obligor’s knowledge, is adjacent to any such
property; (B) contain or, to any Obligor’s knowledge, have contained in the past, any underground or aboveground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have
been treated, stored or disposed, any equipment containing polychlorinated biphenyls, or any asbestos-containing materials, and (C) has been the location of or are affected by any Hazardous Materials that are or have been released, discharged
or disposed of on any such property or facility. 
  
 (v) Neither any Obligor nor any of its Subsidiaries is undertaking, or has completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any
actual or threatened release, discharge or disposal of Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any governmental or regulatory authority or the requirements of any Environmental Law.

  
 (vi) No Hazardous Materials have been
generated, used, treated, handled, released, disposed or stored at, arranged for disposal or transported to or from, any property currently or formerly owned or operated by any Obligor or any of its Subsidiaries in a manner that could result in
material liability to any Obligor or any of its Subsidiaries. 
  
 (r) Taxes. 
  
 (i) Except as set
forth in Schedule 4.01(r) hereto, neither any Obligor nor any of its Subsidiaries is party to any tax sharing agreement, 
  
 (ii) (x) all tax returns and all material statements, reports and forms (including estimated tax or information returns)
(collectively, the “Tax Returns”) required to be filed with any taxing authority by, or with respect to, each Obligor and its Subsidiaries have been timely filed in accordance with all applicable laws and, as of time 

  

 45 








 
of filing, each Tax Return was accurate and complete and correctly reflected the facts regarding income, business, assets, operations and the status of each
Obligor and its Subsidiaries; (y) each Obligor and its Subsidiaries has timely paid or made adequate provision for payment of all taxes that are shown as due and payable on Tax Returns that have been so filed or that are otherwise required to
be paid, including without limitation, assessments, interest and penalties (other than taxes which are being contested in good faith and for which adequate reserves are reflected on the financial statements delivered hereunder); and (z) each
Obligor and its Subsidiaries have made adequate provision for all taxes payable by such Obligor and its Subsidiaries for which no Tax Return has yet been filed or which are otherwise due, 
  
 (iii) Set forth on Part I of Schedule 4.01(r) hereto
is a complete and accurate list, as of the date hereof, of each taxable year of each Obligor and each of its Subsidiaries and Affiliates for which Federal income tax returns have been filed and for which the expiration of the applicable statute of
limitations for assessment or collection has not occurred by reason of extension or otherwise (an “Open Year”), 
  
 (iv) The aggregate unpaid amount, as of the date hereof, of adjustments to the Federal income tax liability of each Obligor and each of
its Subsidiaries and Affiliates proposed by the Internal Revenue Service with respect to Open Years does not exceed $35,000. Set forth on Part II of Schedule 4.01(r) hereto is a complete and accurate description, as of the date hereof, of
each such item that separately, for all such Open Years, together with applicable interest and penalties, exceeds $100,000. To the Issuer’s knowledge, no issues have been raised by the Internal Revenue Service in respect of Open Years that, in
the aggregate, could be reasonably likely to have a Material Adverse Effect. 
  
 (v) Except as set forth in Schedule 4.01(r) hereto, the aggregate unpaid amount, as of the date hereof, of adjustments to the state, local and foreign tax liability of each Obligor and its Subsidiaries and
Affiliates proposed by all state, local and foreign taxing authorities (other than amounts arising from adjustments to Federal income tax returns) does not exceed $35,000. No issues have been raised by such taxing authorities that, in the aggregate,
could be reasonably likely to have a Material Adverse Effect. 
  
 (s) Neither the business nor the properties of any Obligor or any of its Subsidiaries have been affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of
the public enemy or other casualty (whether or not covered by insurance) that could be reasonably likely to have a Material Adverse Effect. 
  
 (t) Set forth on Schedule 4.01(t) hereto is a complete and accurate list of all Surviving Debt (after giving pro forma effect to the repayment of
the outstanding Debt issued under the Third Amended ITCD Credit Agreement and the termination of such agreement), showing as of the date hereof the Obligor and the principal amount outstanding thereunder, the maturity date thereof and the
amortization schedule therefor. No Obligor is in default, and no waiver of default is currently in effect, in the performance of any agreements related to, or in the payment of any principal or interest on, any (i) Surviving Debt,
(ii) Debt under the Second Lien 

  

 46 








 
Loan Documents or (iii) Debt under the First Lien Documents and no event or condition exists with respect to any such Debt that would (A) require
the Obligor thereof to repurchase it or (B) permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to become due and payable before its stated maturity or before its regularly scheduled
dates of payment. 
  
 (u) Neither Parent nor any of its
Subsidiaries is subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act, the Interstate Commerce Act, the ICC Termination Act, as amended, or the Investment Company Act of 1940. 
  
 (v) Set forth on Schedule 4.01(v) hereto is a complete and accurate
list of all Liens on the property or assets of any Obligor or any of its Subsidiaries, showing as of the date hereof the lienholder thereof, the principal amount of the obligations secured thereby and the property or assets of such Obligor or such
Subsidiary subject thereto. 
  
 (w) Set forth on Schedule
4.01(w) hereto is a complete and accurate list of all real property owned or leased by any Obligor or any of its Subsidiaries, showing as of the date hereof the street address, county or other relevant jurisdiction, state, record owner and gross
book and fair value thereof. Each Obligor or Subsidiary has good, marketable and insurable fee simple title to, or a valid leasehold interest in, such real property, free and clear of all Liens, other than Liens created or permitted by the Purchase
Documents, the First Lien Documents and the Second Lien Loan Documents. 
  
 (x) Set forth on Schedule 4.01(x) hereto is a complete and accurate list of all leases of real property under which any Obligor or any of its Subsidiaries is the lessee, showing as of the date hereof the street address, county or
other relevant jurisdiction, state, lessor, lessee, expiration date and annual rental cost thereof. Each agreement listed on Schedule 4.01(x) is in full force and effect and no Obligor has knowledge of any default that has occurred and is
continuing thereunder. Each such lease is the legal, valid and binding obligation of the lessor thereof, enforceable in accordance with its terms. 
  
 (y) Set forth on Schedule 4.01(y) hereto is a complete and accurate list of all Investments held by any Obligor or any of its Subsidiaries on the
date hereof, showing as of the date hereof the amount, Obligor or issuer and maturity, if any, thereof. 
  
 (z) Set forth on Schedule 4.01(z) hereto is a complete and accurate list of all patents, trademarks, trade names, service marks and copyrights, and
all applications therefor and licenses thereof (the “Intellectual Property”), of each Obligor or any of its Subsidiaries, showing as of the date hereof the jurisdiction in which registered, the registration number, the date of
registration and the expiration date. No claim has been asserted and is pending by any Person challenging or questioning the use of any such Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does the
Parent know of any valid basis for any such claim, except for such claims that in the aggregate could not reasonably be expected to result in a Material Adverse Effect. The use of such Intellectual Property by the Parent and its Subsidiaries does
not infringe on the rights of any Person, except for such claims and infringements that, in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. 
  

 47 








 (aa) Set forth on Schedule 4.01(aa) hereto is a complete and accurate list of all Material
Contracts of each Obligor and its Subsidiaries involving aggregate consideration payable to or by such Obligor or its Subsidiaries of $20,000,000 or more in any year. Each such Material Contract, together with each other Material Contract, shows as
of the date hereof the parties, subject matter and term thereof. Each such Material Contract, together with each other Material Contract, has been duly authorized, executed and delivered by all parties thereto, has not been amended or otherwise
modified, is in full force and effect and is binding upon and enforceable against all parties thereto in accordance with its terms, and except as set forth on Schedule 4.01(aa) hereto, there exists no default under any Material Contract by
any party thereto. 
  
 (bb) The Warrants and the other Warrant
Documents have been duly authorized by the Parent and, when issued and delivered in accordance with the terms of this Agreement, the Warrant Agreement and the other Warrant Documents, the Warrants shall be validly issued and outstanding, and free
and clear of any Liens. The Warrant Shares and Conversion Shares shall, when issued, be validly issued and outstanding, fully paid and nonassessable, and free and clear of any Liens. The issuance of the Warrants, the Warrant Shares and the
Conversion Shares shall not be subject to preemptive or other similar rights. 
  
 (cc) The Warrants when issued and the other Warrant Documents shall constitute valid and binding agreements of the Parent, in each case enforceable against the Parent in accordance with their respective terms, except
as such enforcement is limited by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights generally and for limitations imposed by generally principles of equity. 
  
 (dd) Neither the Parent nor any Person acting on its behalf (it being
understood that neither the Agent nor any Purchaser shall be deemed for purposes of this representation and warranty to be acting on behalf of the Parent) has taken or shall take any action (including, without limitation, any offering of any
securities of the Parent under circumstances which would require, under the Securities Act, the integration of such offering with the offering and sale of the Warrants) which might subject the offering, issuance or sale of the Warrants to the
registration requirements of Section 5 of the Securities Act. 
  
 (ee) The authorized capital stock of the Parent consists of 350,000,000 shares of Common Stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share. As of July 20, 2005, there were outstanding
56,109,205 shares of Common Stock of the Parent, 186,555 shares of Series A Preferred Stock and 560,855 shares of Series B Preferred Stock. As of the date first written above on this Agreement, there were outstanding under the ITC^DeltaCom, Inc.
Amended and Restated Stock Incentive Plan dated December 18, 2003 (i) stock options to purchase an aggregate of 2,432,407 shares of Common Stock of the Parent, of which stock options to purchase an aggregate of 1,494,894 shares of Common
Stock of the Parent were exercisable, and (ii) restricted stock units for 2,508,500 shares of Common Stock of the Parent, of which restricted stock units for 182,958 shares of Common Stock were vested. As of July 20, 2005, there were
outstanding, currently exercisable warrants to purchase an aggregate of 4,019,850 shares of Common Stock of the Parent. All outstanding shares of capital stock of the Parent have been, and all shares of Common Stock of the Parent that may be issued
pursuant to the ITC^DeltaCom, Inc. Amended and Restated Stock Incentive Plan shall be, 

  

 48 








 
when issued in accordance with the terms of such plan, duly authorized and validly issued and fully paid and nonassessable. No Subsidiary of the Parent owns
any shares of capital stock of the Parent. 
  
 (ff) The Parent has
made available to the Agent and the Purchasers (except to the extent such filings are publicly available on the EDGAR system) copies of (i) its Annual Report on Form 10–K for the fiscal year ended December 31, 2004, (ii) its
Quarterly Reports on Form 10–Q for the quarter ended March 31, 2005, including any amendments thereto, and (iii) its Current Reports on Form 8–K for reporting dates subsequent to December 31, 2004 (collectively, the
“SEC Documents”). As of the time it was filed with the SEC (or, if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing with respect to the information covered by the amendment or
superseding filing): (i) the Form 10–K and the Form 10–Q included in the SEC Documents complied in all material respects with the applicable requirements of the Exchange Act; and (ii) none of the SEC Documents contained any
untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading with respect to
the period covered by such SEC Document (in the case of the Form 10–K and the Form 10–Q included in the SEC Documents). 
  
 (gg) Securities Activities. Neither the Parent nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the
business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds from the Notes hereunder shall be used, directly or indirectly, for the purpose of buying or carrying any Margin Stock, or for the
purpose of buying or carrying or trading in any securities under such circumstances as to involve the Parent in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board
(12 CFR 220). Margin Stock does not constitute more than 5% of the value of the consolidated assets of the Parent and its Subsidiaries and the Parent does not have any present intention that Margin Stock shall constitute more than 5% of the value of
such assets. As used in this Section 4.01(gg), the terms “purpose of buying or carrying” shall have the meanings assigned to them in Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221). 

 
 (hh) Certain Fees. Other than fees payable by the Obligors to
Miller Buckfire & Co., LLC in connection herewith and the other financings closing on the Closing Date, no broker’s or finder’s fee or commission shall be payable with respect to this Agreement or any of the other Purchase
Documents or any of the transactions contemplated hereby or thereby, and the Parent hereby indemnifies Purchasers and the Agents against, and agrees that it shall hold Purchasers and the Agents harmless from, any claim, demand or liability for any
such broker’s or finder’s fees alleged to have been incurred in connection herewith or therewith and any expenses (including reasonable fees, expenses and disbursements of counsel) arising in connection with any such claim, demand or
liability. 
  
 (ii) Employee Matters. There is no strike or
work stoppage in existence or threatened involving the Parent or any of its Subsidiaries that could reasonably be expected to result in a Material Adverse Effect. 
  

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 (jj) Solvency. Each Obligor is and, upon the incurrence of any Obligations by such Obligor on any
date on which this representation is made, shall be, Solvent. No transfer of property is being made by the Parent or any of its Subsidiaries and no obligation is being incurred by the Parent or any of its Subsidiaries in connection with the
transactions contemplated by this Agreement or the other Purchase Documents with the intent to hinder, delay, or defraud either present or future creditors of the Parent and its Subsidiaries. 
  
 Section 4.02 Representations and Warranties of each Purchaser.
Each Purchaser represents and warrants, severally and not jointly, to the Obligors, as follows as of the Closing Date: 
  
 (a) Such Purchaser is a “Qualified Institutional Buyer,” as defined in Rule 144A under the Securities Act or an “accredited investor”
within the meaning of Rule 501(a) of Regulation D under the Securities Act and the Parent Transaction Securities to be acquired by it pursuant to this Agreement are being acquired for its own account and without a view to, or for resale in
connection with, any distribution thereof or any interest therein within the meaning of the Securities Act; provided that the provisions of this Section 4.02 shall not prejudice such Purchaser’s right at all times to sell or
otherwise dispose in accordance with the terms of this Agreement of all or any part of the Parent Transaction Securities so acquired pursuant to a registration under the Securities Act or an exemption from such registration available under the
Securities Act; 
  
 (b) Such Purchaser understands that:
(i) the sale or re-sale of the Parent Transaction Securities has not been and shall not be registered under the Securities Act or any applicable state securities laws by the Issuer, and the Parent Transaction Securities may not be sold,
distributed or otherwise transferred unless the Parent Transaction Securities (a) are sold, distributed or transferred pursuant to an effective registration statement under the Securities Act and applicable state securities laws, or
(b) the Parent Transaction Securities are sold pursuant to Rule 144 under the Securities Act or any other exemption from registration available under the Securities Act; (ii) any sale of the Parent Transaction Securities made in reliance
on Rule 144 may be made only in accordance with the terms of such Rule and further, if such Rule is not applicable, any sale of the Parent Transaction Securities under circumstances in which the seller (or the person through whom the sale is made)
may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with another exemption under the Securities Act; (iii) neither the Parent nor any other Person is under any obligation to register the
Parent Transaction Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (except to the extent contemplated by the Registration Rights Agreement with respect to the
Warrants, the Warrant Shares and the Conversion Shares); and (iv) no governmental entity has passed upon or made any recommendation or endorsement of the Parent Transaction Securities; 
  
 (c) The execution, delivery and performance of this Agreement and the
purchase of the Parent Transaction Securities pursuant hereto are within such Purchaser’s corporate, partnership or limited liability company, as applicable, powers and have been duly and validly authorized by all requisite corporate,
partnership or limited liability company, as applicable, action; 
  

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 (d) This Agreement has been duly executed and delivered by such Purchaser; 
  
 (e) This Agreement constitutes a valid and binding agreement of such
Purchaser; 
  
 (f) Such Purchaser has such knowledge and
experience in financial and business matters so as to be capable of evaluating the merits and risks of its investment in the Parent Transaction Securities and such Purchaser is capable of bearing the economic risks of such investment; 
  
 (g) Such Purchaser has been given access to all documents, records, and other
information, has received physical or electronic delivery of all such documents, records and information which such Purchaser has requested, and has had adequate opportunity to ask questions of, and receive answers from, the Parent, the Issuer and
the Subsidiary Guarantors and their respective officers, employees, agents, accountants, and representatives concerning the Issuer’s business, operations, financial condition, assets, liabilities, and all other matters relevant to its
investment in the Parent Transaction Securities; 
  
 (h) The
address set forth on Schedule I hereto for such Purchaser is its principal place of business; and 
  
 (i) Such Purchaser acknowledges that the Parent Transaction Securities shall bear a restrictive legend substantially in the following form in addition to
any legend required to be affixed to such securities pursuant to the Warrant Documents: 
  
 THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND ARE SUBJECT TO
RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES MAY NOT BE SOLD, PLEDGED, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER THE PROVISIONS OF THE SECURITIES ACT AND ANY
APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR IN A TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THE CORPORATION RESERVES THE RIGHT PRIOR TO ANY SUCH TRANSACTION TO
REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO IT WITH RESPECT TO COMPLIANCE WITH THE FOREGOING RESTRICTIONS. 
  

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 ARTICLE V. COVENANTS 
  
 Section 5.01 Affirmative Covenants. So long as any Note or any other Obligation of any Obligor under any
Purchase Document shall remain unpaid, each Obligor shall: 
  
 (a)
Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to comply, in all material respects, with all applicable laws, rules, regulations and orders, such compliance to include, without limitation, compliance with ERISA, the
Racketeer Influenced and Corrupt Organizations Chapter of the Organized Crime Control Act of 1970, the rules and regulations of the FCC and each applicable PUC. 
  

(b) Payment of Taxes, Etc. Subject to Section 5.01(n)(ii), pay and discharge, and cause each of its Subsidiaries to pay and
discharge, before the same shall become delinquent, (i) all taxes, assessments and governmental charges or levies imposed upon it or upon its property, and (ii) any tax, fee or surcharge imposed upon, or required to be collected and
remitted by, any Obligor pursuant to Applicable Law, and (iii) all lawful claims that, if unpaid, might by law become a Lien upon its property; provided, however, that neither the Issuer nor any of its Subsidiaries shall be
required to pay or discharge any such tax, assessment, charge, levy or claim that is being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained, unless and until any Lien resulting therefrom
attaches to its property and becomes enforceable. The Issuer shall not, nor shall it permit any of its Subsidiaries to, file or consent to the filing of any consolidated income tax return with any Person (other than with the Parent or any of the
Parent’s Subsidiaries). 
  
 (c) Compliance with
Environmental Laws. Comply, and cause each of its Subsidiaries and all lessees and other Persons operating or occupying its properties to comply, in all material respects, with all applicable Environmental Laws and Environmental Permits; obtain
and renew and cause each of its Subsidiaries to obtain and renew all Environmental Permits necessary for its operations and the occupancy of its properties; and conduct, and cause each of its Subsidiaries to conduct, any investigation, study,
sampling and testing, and undertake any cleanup, removal, remedial or other action necessary to remove and clean up all Hazardous Materials from any of its properties or respond to any Environmental Action, to the extent required by and in
accordance with all Environmental Laws; provided, however, that neither the Issuer nor any of its Subsidiaries shall be required to undertake any such cleanup, removal, remedial or other action to the extent that its obligation to do
so is being contested in good faith and by proper proceedings and appropriate reserves are being maintained with respect to such circumstances. 
  
 (d) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable insurance
companies or associations in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which the Parent or such Subsidiary operates. Without
limiting the generality of the foregoing, the Obligors shall maintain or cause to be maintained replacement value casualty insurance on the Collateral under such policies of insurance, with such insurance companies, in such amounts, with such
deductibles, and covering such risks as are at all times satisfactory to the Agent in its 

  

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commercially reasonable judgment. Each such policy of insurance shall (i) name the Collateral Agent for the benefit of Purchasers as an additional
insured thereunder as its interests may appear and (ii) in the case of each business interruption and casualty insurance policy, contain a loss payable clause or endorsement, satisfactory in form and substance to the Collateral Agent, that
names the Collateral Agent for the benefit of Purchasers and the Collateral Agent as the loss payee thereunder for any covered loss in excess of $5,000,000 and provides for at least 30 days’ prior written notice to the Agent of any modification
or cancellation of such policy. Without limiting the generality of the foregoing, the Obligors shall also maintain or cause to be maintained to the extent commercially available directors and officers liability insurance which shall cover all of the
members of the board of directors of the Parent (including representatives of the Agent or the Purchasers who are elected to the board of directors of the Parent), in such amounts, with such deductibles, covering such risks, and having such
exclusions as are at all times satisfactory to the Collateral Agent in its commercially reasonable judgment. 
  
 (e) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause each of its Subsidiaries to preserve and maintain, its existence,
legal structure, legal name, rights (charter and statutory), permits, licenses, approvals, privileges and franchises; provided, however, that the Parent and its Subsidiaries may consummate any merger or consolidation permitted under
Section 5.02(d) and provided, further, that neither the Parent nor any of its Subsidiaries shall be required to preserve any right, permit, license, approval, privilege or franchise if the Board of Directors of the Issuer
or such Subsidiary shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Parent or such Subsidiary, as the case may be, and that the loss thereof is not disadvantageous in any material respect to
the Parent, such Subsidiary or the Purchasers. 
  
 (f)
Visitation Rights. At any reasonable time upon prior reasonable notice and from time to time (i) at the expense of the Issuer, permit any of the Agents and (ii) at the expense of any Purchaser, permit such Purchaser, in each case,
or any of their respective agents or representatives, to examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Parent and any of its Subsidiaries, and to discuss the affairs, finances and
accounts of the Parent and any of its Subsidiaries with any of their officers or directors and with their independent certified public accountants. 
  
 (g) Keeping of Books. Keep, and cause each of its Subsidiaries to keep, proper books of record and account, in which full and correct entries shall
be made of all financial transactions and the assets and business of the Parent and each such Subsidiary in accordance with generally accepted accounting principles in effect from time to time. 
  
 (h) Maintenance of Properties, Etc. Maintain and preserve, and cause
each of its Subsidiaries to maintain and preserve, all of its properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted. 
  
 (i) Transactions with Affiliates. Conduct, and cause each of its
Subsidiaries to conduct, all transactions otherwise permitted under the Purchase Documents with any of their Affiliates on terms that are fair and reasonable and no less favorable to the Parent or such Subsidiary than it would obtain in a comparable
arm’s-length transaction with a Person not an Affiliate. 
  

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 (j) Covenant to Guarantee Obligations and Give Security. Upon (x) the request of the
Collateral Agent, (y) the formation or acquisition of any new direct or indirect Subsidiaries by any Obligor or (z) the acquisition of any property acquired for a purchase price in excess of $1,000,000 in any Fiscal Year and $5,000,000 in
the aggregate over the term of this Agreement by any Obligor, and such property, in the judgment of the Collateral Agent, shall not already be subject to a perfected third priority security interest in favor of the Collateral Agent for the benefit
of the Secured Parties having the priority contemplated by the Intercreditor and Subordination Agreements, then the Obligors shall, in each case at the Obligors’ expense: (i) in connection with the formation or acquisition of a Subsidiary,
within 10 days after such formation or acquisition (or such longer period as the Agent may permit), cause each such Subsidiary, and cause each direct and indirect parent of such Subsidiary (if it has not already done so), to duly execute and deliver
to the Collateral Agent a guaranty or guaranty supplement, in form and substance satisfactory to the Collateral Agent, guaranteeing the other Obligors’ obligations under the Purchase Documents, (ii) within 30 days after such request,
formation or acquisition (or such longer period as the Agent may permit), furnish to the Collateral Agent a description of the real and personal properties of the Obligors and their respective Subsidiaries in detail satisfactory to the Collateral
Agent, (iii) within 45 days after such request, formation or acquisition (or such longer period as the Agent may permit), duly execute and deliver, and cause each such Subsidiary and each direct and indirect parent of such Subsidiary (if it has
not already done so) to duly execute and deliver, to the Collateral Agent mortgages, pledges, assignments, security agreement supplements and other security agreements, as specified by and in form and substance satisfactory to the Collateral Agent,
securing payment of all the Obligations of the applicable Obligor, such Subsidiary or such parent, as the case may be, under the Purchase Documents and constituting Liens on all such properties, (iv) within 45 days after such request, formation
or acquisition (or such longer period as the Agent may permit), take, and cause such Subsidiary or such parent to take, whatever action (including, without limitation, the recording of mortgages, the filing of Uniform Commercial Code financing
statements, the giving of notices and the endorsement of notices on title documents) may be necessary or advisable in the opinion of the Collateral Agent to vest in the Collateral Agent (or in any representative of the Collateral Agent designated by
it) valid and subsisting Liens on the properties purported to be subject to the mortgages, pledges, assignments, security agreement supplements and security agreements delivered pursuant to this Section 5.01(j), enforceable against all
third parties in accordance with their terms, (v) within 60 days after such request, formation or acquisition (or such longer period as the Agent may permit), deliver to the Collateral Agent, upon the request of the Collateral Agent in its sole
discretion, a signed copy of a favorable opinion, addressed to the Collateral Agent and the other Secured Parties, of counsel for the Obligors reasonably acceptable to the Collateral Agent as to the matters contained in clauses (i), (iii) and
(iv) above, as to such guaranties, guaranty supplements, mortgages, pledges, assignments, security agreement supplements and security agreements being legal, valid and binding obligations of each Obligor thereto enforceable in accordance with
their terms, as to the matters contained in clause (iv) above, as to such recordings, filings, notices, endorsements and other actions being sufficient to create valid perfected Liens on such properties, and as to such other matters as the
Collateral Agent may reasonably request, (vi) within 60 days after such request, formation or acquisition (or such longer period as the Agent may permit), deliver, upon the request of the Collateral Agent in its sole discretion, to the
Collateral Agent with respect to each parcel of real property owned by the entity that is the subject of such request, formation or acquisition such title reports, 

  

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surveys and engineering, soils and other reports, and environmental assessment reports, as may be prepared in the ordinary course of business by such entity,
provided, however, that to the extent that any Obligor or any of its Subsidiaries shall have otherwise received any of the foregoing items with respect to such real property, such items shall, promptly after the receipt thereof, be
delivered to the Collateral Agent, (vii) upon the occurrence and during the continuance of a Default, promptly cause to be deposited any and all cash dividends paid or payable to it or any of its Subsidiaries from any of its Subsidiaries from
time to time into the Collateral Account, and with respect to all other dividends paid or payable to it or any of its Subsidiaries from time to time, promptly execute and deliver, or cause such Subsidiary to promptly execute and deliver, as the case
may be, any and all further instruments and take or cause such Subsidiary to take, as the case may be, all such other action as the Collateral Agent may deem necessary or desirable in order to obtain and maintain from and after the time such
dividend is paid or payable a perfected, third priority lien on and security interest in such dividends having the priority contemplated by the Intercreditor and Subordination Agreements, and (viii) at any time and from time to time, promptly
execute and deliver any and all further instruments and documents and take all such other action as the Collateral Agent may deem reasonably necessary or desirable in obtaining the full benefits of, or in perfecting and preserving the Liens of, such
guaranties, mortgages, pledges, assignments, security agreement supplements and security agreements. 
  
 (k) Further Assurances. (i) Promptly upon request by any Agent, or any Purchaser through the Agent, correct, and cause each of its
Subsidiaries promptly to correct, any material defect or error that may be discovered in any Purchase Document or in the execution, acknowledgment, filing or recordation thereof, and (ii) promptly upon request by any Agent, or any Purchaser
through the Agent, do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, conveyances, pledge agreements, mortgages, deeds of trust, trust deeds, assignments, financing
statements and continuations thereof, termination statements, notices of assignment, transfers, certificates, assurances and other instruments as any Agent, or any Purchaser through the Agent, may reasonably require from time to time in order to
(A) carry out more effectively the purposes of the Purchase Documents, (B) to the fullest extent permitted by applicable law, subject any Obligor’s or any of its Subsidiaries’ properties, assets, rights or interests to the Liens
now or hereafter intended to be covered by any of the Collateral Documents, (C) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created thereunder and
(D) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under any Purchase Document or under any
other instrument executed in connection with any Purchase Document to which any Obligor or any of its Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do so. Notwithstanding the foregoing, no Obligor shall be required,
solely pursuant to the provisions of this Section 5.01(k), to encumber any assets which were not otherwise required to be encumbered on the Closing Date or pursuant to Section 5.01(j) or 5.01(n). 
  
 (l) Compliance with Terms of Leaseholds. Make all payments and
otherwise perform all obligations, and cause each of its Subsidiaries to make all payments and otherwise perform all obligations, in respect of all leases of real property to which the Issuer or any of its Subsidiaries is a party as and when such
payments and obligations are due, keep such leases in 

  

 55 








 
full force and effect and not allow such leases to lapse or be terminated or any rights to renew such leases to be forfeited or cancelled, notify the Agent
of any default by any party with respect to such leases and cooperate with the Agent in all respects to cure any such default, and cause each of its Subsidiaries to do so, except in each of the foregoing cases where the failure to do so would not
have a Material Adverse Effect. 
  
 (m) Performance of Material
Contracts. Perform and observe, and cause each of its Subsidiaries to perform and observe, all the terms and provisions of each Material Contract to be performed or observed by it, maintain each such Material Contract in full force and effect
until the cancellation or termination thereof in accordance with its terms, enforce each such Material Contract in accordance with its terms, take all such action to such end as may be from time to time reasonably requested by the Agent (or by the
Agent at the request of the Required Holders) and, upon request of the Agent, make to each other party to each such Material Contract such demands and requests for information and reports or for action as any Obligor or any of its Subsidiaries is
entitled to make under such Material Contract, and cause each of its Subsidiaries to do so, except in each of the foregoing cases where the failure to do so would not have a Material Adverse Effect. 
  
 (n) Post-Closing Covenants. (i) With respect to (A) any
newly-acquired Unencumbered Parcel with a gross book value in excess of $3,000,000, or (B) any Unencumbered Parcel owned by any Obligor as of the Closing Date in which any such Obligor has invested such that the gross book value of the land and
any buildings thereon after the investment is completed is greater than $3,000,000, the Obligors shall deliver to the Agent, within 45 days after the closing of any such acquisition in clause (A) above or of any such investment in clause
(B) above with respect to such property, the following, each dated such day (unless otherwise specified) in form and substance satisfactory to the Agent: deeds of trust, trust deeds, mortgages, leasehold mortgages and leasehold deeds of trust
in form reasonably satisfactory to the Agent (together with the Assignments of Leases and Rents referred to therein and each other mortgage delivered pursuant to Section 5.01(j), in each case as amended, the
“Mortgages”), duly executed by the appropriate Obligor, together with: 
  
 (1) evidence that counterparts of the Mortgages have been duly recorded in all filing or recording offices that the Agent may reasonably
deem necessary or desirable in order to create a valid third and subsisting Lien on the property described therein in favor of the Collateral Agent for the benefit of the Secured Parties having the priority contemplated by the Intercreditor and
Subordination Agreements, and that all filing and recording taxes and fees have been paid, 
  
 (2) fully paid American Land Title Association Lender’s Extended Coverage mortgagee title insurance policies (the “Mortgage
Policies”) in form and substance, with endorsements and in amount reasonably acceptable to the Collateral Agent, issued, coinsured and reinsured by title insurers acceptable to the Collateral Agent, insuring the Mortgages to be valid third
and subsisting Liens on the property described therein, free and clear of all defects (including, but not limited to, mechanics’ and materialmen’s Liens) and encumbrances, excepting only Permitted Encumbrances and Liens having the priority
contemplated by the 

  

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Intercreditor and Subordination Agreements, and providing for such other affirmative insurance (including endorsements for mechanics’ and
materialmen’s Liens) and such coinsurance and direct access reinsurance as the Collateral Agent may reasonably deem necessary or desirable, 
  
 (3) American Land Title Association form surveys, certified to the Collateral Agent and the issuer of the Mortgage Policies in a manner
reasonably satisfactory to the Collateral Agent by a land surveyor duly registered and licensed in the States in which the property described in such surveys is located and acceptable to the Collateral Agent, showing all buildings and other
improvements, any off-site improvements, the location of any easements, parking spaces, rights of way, building set-back lines and other dimensional regulations and the absence of encroachments, either by such improvements or on to such property,
and other defects, other than encroachments and other defects reasonably acceptable to the Collateral Agent, 
  
 (4) the Assignments of Leases and Rents referred to in the Mortgages, duly executed by the appropriate Obligor, 
  
 (5) such consents and agreements of lessors and other third
parties, and such estoppel letters and other confirmations, as the Agent may reasonably deem necessary or desirable, 
  
 (6) evidence of the insurance required by the terms of the Mortgages, and 
  
 (7) evidence that all other action that the Agent may deem reasonably necessary or desirable in order to
create valid third and subsisting Liens on the property described in the Mortgages has been taken. 
  
 (ii) With respect to (A) any newly-acquired Unencumbered Parcel with a gross book value in excess of $1,000,000 but less than
$3,000,000, or (B) any Unencumbered Parcel owned by any Obligor as of the Closing Date in which any such Obligor has invested such that the gross book value of the land and any buildings thereon after the investment is completed is in excess of
$1,000,000 but less than $3,000,000, the Obligors shall deliver to the Agent, within 45 days after the closing of any such acquisition in clause (A) above or of any such investment in clause (B) above with respect to such property, the
following, each dated such day (unless otherwise specified) in form and substance satisfactory to the Agent: deeds of trust, trust deeds, mortgages, leasehold mortgages and leasehold deeds of trust in form reasonably satisfactory to the Agent,
together with evidence that counterparts of any such mortgages have been duly recorded in all filing or recording offices that the Agent may reasonably deem necessary or desirable in order to create a valid third and subsisting Lien on the property
described therein in favor of the Collateral Agent for the benefit of the Secured Parties and that all filing and recording taxes and fees have been paid. 
  

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 (iii) With respect to the Davidson County switch property located at 101 Rains Avenue,
Nashville, TN 37203, the Obligors shall deliver to the Agent, within 30 days after the Closing Date, deeds of trust, trust deeds, mortgages, leasehold mortgages and leasehold deeds of trust, as applicable, in form reasonably satisfactory to the
Agent, together with evidence that counterparts of such mortgage have been duly recorded in all filing or recording offices that the Agent may reasonably deem necessary or desirable in order to create a valid third and subsisting Lien on the
property described therein in favor of the Collateral Agent for the benefit of the Secured Parties and that all filing and recording taxes and fees have been paid. 
  
 (o) Use of Proceeds. The Parent shall, and shall cause each of its Subsidiaries to, use the proceeds from the sale of
the Securities for such Persons’ general corporate purposes. 
  
 (p) Application of Extraordinary Receipts. The Parent shall and shall cause each of its Subsidiaries to use the proceeds of any Extraordinary Receipt or Net Cash Proceeds in accordance with the terms of this Agreement. 
  
 (q) Deposit Accounts, Securities Accounts and Cash Management Systems.
The Parent shall, and shall cause each of its Subsidiaries to, use and maintain its deposit accounts, securities accounts and cash management systems in a manner reasonably satisfactory to Purchasers and the Agent. The Parent shall not permit any of
such deposit accounts or securities accounts at any time to have a principal balance in excess of $100,000 in the aggregate for all such accounts unless the Parent or such Subsidiary, as the case may be, has delivered to the Agent an Account Control
Agreement substantially in the form attached hereto as Exhibit H. 
  
 (r) Assignability of Contracts. The Parent shall, and shall cause each of its Subsidiaries to, use its commercially reasonable efforts to exclude from all Material Contracts entered into after the Closing Date,
any term or provision that would prevent the Parent or a Subsidiary Guarantor from granting a Lien in such agreements or documents to the Collateral Agent under the Collateral Documents. 
  
 (s) Regulatory Consents. The Parent shall, and shall cause each of its Subsidiaries to, use its diligent efforts to
obtain or make, within 180 days after the Closing Date, all governmental licenses, permits, approvals, authorizations, actions, notices and filings set forth on Part II of Schedule 4.01(d) in connection with the Transactions (without the
imposition of any conditions that are not reasonably acceptable to the Agent). 
  
 (t) Information Statement. The Parent shall file the information statement (the “Information Statement”) of the Parent required to be filed with the SEC pursuant to Regulation 14C under the
Exchange Act in connection with the issuance of those certain warrants issued pursuant to the Warrant Agreement, dated as of March 29, 2005, between the Parent and Mellon Investor Services LLC, as warrant agent, as amended from time to time
(the “March 2005 Warrants”), shares issuable upon exercise of the March 2005 Warrants, the Warrants, Warrant Shares, and the Conversion Shares and any amendments or supplements thereto, and will cause such filing, when filed, to
comply as to form in all material respects with the applicable requirements of the Exchange Act. At the time the Information Statement or any amendment or supplement thereto is first mailed to stockholders of the Parent, the Information 

  

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Statement, as supplemented or amended, if applicable, shall not contain any untrue statement of a material fact or omit to state any material fact necessary
in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. The representations and warranties contained in this Section 5.01(t) shall not apply to statements or omissions
included in the Information Statement based upon information furnished to the Parent in writing by WCAS or TCP specifically for use therein. 
  
 (u) For each financial institution at which any Obligor maintains deposit, securities or other accounts for which the Obligors have been unable to deliver
a legal opinion reasonably acceptable to the Agent as to the perfection of a security interest over such account as of the Closing, the Obligors shall either (i) deliver such an opinion (in form and substance satisfactory to the Agents) over
such account control agreements not later than 30 days following the Closing Date or (ii) at the request of the Agent, promptly move or transfer any deposit, securities or other accounts and/or cash management systems to one or more nationally
or regionally recognized financial institutions that the Agents in their sole discretion determine will be able to provide account control agreements that demonstrate that the Collateral Agent has a perfected security interest in such security,
deposit or other account (whether confirmed by legal opinion in form and substance satisfactory to the Agents or other means acceptable to the Agents in their sole discretion). In addition, the Obligors shall cooperate and assist the Agents in
ensuring that the Collateral Agent has a perfected security interest in the securities, deposit and other accounts of the Obligors at all times. 
  
 Section 5.02 Negative Covenants. So long as any Note or any other Obligation of any Obligor under any Purchase Document shall remain unpaid,
no Obligor shall, at any time: 
  
 (a) Liens, Etc. Create,
incur, assume or suffer to exist, or permit any of its Subsidiaries to create, incur, assume or suffer to exist, any Lien on or with respect to any of its properties of any character (including, without limitation, accounts) whether now owned or
hereafter acquired, or sign, file or authorize the filing or suffer to exist, or permit any of its Subsidiaries to sign, file or authorize the filing or suffer to exist, under the Uniform Commercial Code of any jurisdiction, a financing statement
that names the Parent or any of its Subsidiaries as debtor, or sign or suffer to exist, or permit any of its Subsidiaries to sign or suffer to exist, any security agreement authorizing any secured party thereunder to file such financing statement,
or assign, or permit any of its Subsidiaries to assign, any accounts or other right to receive income, except: 
  
 (i) Liens created under the Purchase Documents, the Second Lien Loan Documents and the First Lien Documents; 
  
 (ii) Permitted Liens; 
  
 (iii) Liens existing on the date hereof and described on
Schedule 4.01(v) hereto; 
  
 (iv) Liens
arising in connection with Capitalized Leases permitted under Section 5.02(b)(iv); provided, that no such Lien shall extend to or cover any Collateral or assets other than the assets subject to such Capitalized Leases; 

 

 59 








 (v) Liens created after the date hereof in connection with purchase money obligations
with respect to equipment acquired by any Obligor in the ordinary course of business; 
  
 (vi) Liens securing Debt incurred pursuant to Sections 5.02(b)(ii) and (iii) and otherwise permitted by the
Subordination and Intercreditor Agreements; 
  
 (vii) Liens securing Debt incurred pursuant to Sections 5.02(b)(vi); and 
  
 (viii) (A) deposits of cash, checks or Cash Equivalents to secure Ordinary Course Obligations, (B) letters of credit issued to
secure Ordinary Course Obligations or (C) surety, appeal, performance and return-of-money bonds and bonds of a similar nature issued to secure or in respect of Ordinary Course Obligations, in an aggregate amount not to exceed the amount set
forth in Section 5.02(b)(ix). 
  
 (b) Debt.
Incur or permit any of its Subsidiaries to Incur any Debt other than: 
  
 (i) Debt under the Purchase Documents; 
  
 (ii) Debt outstanding as of the Closing Date under the Second Lien Loan Documents in an aggregate principal amount not to exceed (a) $55,715,294 minus (b) the sum of any principal prepayments made on such
Debt after the date hereof (plus paid-in-kind interest thereon in accordance with the Second Lien Loan Documents), as the same may be refinanced or replaced from time to time, so long as all of the following conditions are met: (A) such
refinancing or replacement does not shorten the maturity date or weighted average life to maturity date of the Debt being refinanced or replaced, (B) such refinancing or replacement does not increase the non-default interest rate by more than
200 basis points (unless the Purchase Documents are also amended to permit an equivalent increase), (C) the priority of the Liens and guaranties thereunder do not change (and continue to be subject to the Intercreditor and Subordination
Agreements), (D) the principal amount of the refinanced or replaced Debt does not exceed the maximum principal amount of Debt permitted to be incurred pursuant to this clause (ii), and (E) the covenants, defaults and other material
provisions thereof are not made materially more restrictive; 
  
 (iii) Debt of the Obligors under First Lien Documents outstanding at any time in an aggregate principal amount not to exceed $230,000,000, minus the sum of any principal payments and prepayments made on the
First Lien Notes after the date hereof in accordance with the First Lien Documents (other than refinancings in full) (plus paid-in-kind interest thereon in accordance with the First Lien Documents) plus Debt Incurred under the First Lien
Documents after a Default or Event of Default consisting of protective advances made by the First Lien Lenders directly to Persons unrelated to the Issuer for the sole purpose of protecting or preserving the value of the Collateral, as the same may
be refinanced or replaced from time to time, so long as all of the following conditions are met: (A) such refinancing or replacement does not shorten the maturity date or weighted average life to maturity date of the Debt being refinanced or
replaced, (B) such refinancing or replacement does not increase the non-default interest rate by 

  

 60 








 
more than 200 basis points (unless the Purchase Documents are also amended to permit an equivalent increase), (C) the priority of the Liens and
guaranties thereunder do not change (and continue to be subject to the Second Lien Intercreditor and Subordination Agreement), (D) the principal amount of the refinanced or replaced Debt does not exceed the maximum principal amount of Debt
permitted to be incurred pursuant to this clause (iii), and (E) the covenants, defaults and other material provisions thereof are not made materially more restrictive; 
  
 (iv) Capitalized Leases (other than Surviving Debt) not to exceed in the aggregate $7,500,000; 

 
 (v) the Surviving Debt; 
  
 (vi) Debt Incurred under the Second Lien Loan Documents
after a Default or Event of Default consisting of protective advances made by the Second Lien Lenders directly to Persons unrelated to the Issuer in an amount not to exceed $5,500,000 for the sole purpose of protecting or preserving the value of the
Collateral; 
  
 (vii) Debt of the Issuer under
Hedge Agreements; provided, that such agreements (A) are designed solely to protect the Obligors against fluctuations in foreign currency exchange rates or interest rates and (B) do not increase the Debt of the Obligor thereunder
outstanding at any time other than as a result of fluctuations in foreign currency exchange rates or interest rates or by reason of fees, indemnities and compensation payable thereunder; 
  
 (viii) Debt Incurred in connection with the repayment or refinancing of the Debt under the Purchase
Documents in full or, if the Debt under the Purchase Documents is not repaid or refinanced in full, in such other amount and on such terms and conditions as is approved by the Required Holders; 
  
 (ix) Debt in respect of Ordinary Course Obligations in an
aggregate amount not to exceed $10,000,000 at any time outstanding; and 
  
 (x) Debt of the type described in clause (j) of the definition of “Debt” which is secured by a Permitted Lien, to the extent that such Debt is Incurred in the ordinary course of business and is not the
subject of an enforcement, collection, execution, levy or foreclosure proceeding and is not duplicative of Debt Incurred pursuant to Section 5.02(b)(ix). 
  
 Notwithstanding any other provision under this Section 5.02(b), (A) the maximum amount of Debt that the Parent or a
Subsidiary may incur pursuant to Sections 5.02(b)(i), (ii), (iii), (iv) and (ix) shall not exceed $393,215,294 in aggregate principal amount at any one time outstanding, and (B) any Obligor may Incur
Debt owed to any other Obligor. 
  
 (c) Change in Nature of
Business. Make, or permit any of its Subsidiaries to make, any material change in the nature of its business as carried on at the date hereof provided, that, the Parent or any of its Subsidiaries may engage in activities that are
ancillary or related to its business as presently conducted. 
  

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 (d) Mergers, Etc. Merge into or consolidate with any Person or permit any Person to merge into it,
or permit any of its Subsidiaries to do so, except that: 
  
 (i) any Subsidiary of the Issuer may merge into or consolidate with the Issuer or any other Subsidiary of the Issuer, provided, that (A) in the case of any such merger or consolidation of or with the
Issuer, the Issuer shall be the surviving Person and (B) in the case of any such merger or consolidation among Subsidiaries of the Issuer, the Person formed by such merger or consolidation shall be a Subsidiary of the Issuer, and if a
Subsidiary Guarantor is a party to such merger or consolidation, the Person formed by such merger or consolidation shall be a Subsidiary Guarantor; 
  
 (ii) in connection with any sale or other disposition permitted under Section 5.02(e) (other than clause (ii) thereof),
any Subsidiary of the Issuer may permit any other Person to merge into or consolidate with it; and 
  
 (iii) any Obligor may merge into or consolidate with any Person in connection with a Permitted Reorganization; 
  
 provided, that in each case, immediately after giving effect to such merger or consolidation,
no event shall occur and be continuing that constitutes a Default. 
  
 (e) Sales, Etc., of Assets. Sell, lease, transfer or otherwise dispose of, or permit any of its Subsidiaries to sell, lease, transfer or otherwise dispose of, any assets, or grant any option or other right to purchase, lease or
otherwise acquire any assets, other than Inventory to be sold in the ordinary course of its business, except: 
  
 (i) sales and leases of assets in the ordinary course of its business consistent with prudent business practice for companies engaged in
similar businesses, for cash and fair value (such as fiber sales); 
  
 (ii) in a transaction authorized by Section 5.02(d) (other than clause (ii) thereof); 
  
 (iii) the sales or dispositions as set forth in Schedule VII; 
  
 (iv) sales of assets as consented to by the Required Holders for cash and for fair value; 
  
 (v) sales of obsolete equipment and other property no longer
used or relevant to the core business or operations of any Obligor for cash and for fair value in an aggregate amount not to exceed $2,000,000; 
  
 (vi) sales of equipment for cash and for fair value in an aggregate amount not to exceed $10,000,000 to the extent the proceeds thereof
are used by any Obligor to purchase replacement equipment that is substantially similar in type and function to the equipment sold or to be sold, within 180 days before or after the date of any such sale; 
  

 62 








 (vii) any sale, lease, transfer or other disposition by the Parent or any Subsidiary of
the Parent to the Issuer and its Subsidiaries that are Obligors; 
  
 (viii) assignments, sales or other dispositions at fair market value for cash of accounts receivable representing amounts owed to any Obligor by any Person that is subject to a proceeding under the Bankruptcy Code;
and 
  
 (ix) intercompany assignments, sales or
other dispositions of property in connection with a Permitted Reorganization; 
  
 provided, that in the case of sales of assets pursuant to clauses (iv) and (viii) above, the Issuer shall, on the date of receipt by any Obligor or any of its Subsidiaries of the Net Cash Proceeds from such sale, prepay the Notes
pursuant to, and in the amount set forth in Section 2.08(a), as specified therein to be applied in the order of priority set forth in Section 2.08. Nothing in this Section 5.02(e) shall restrict the Parent from
issuing, selling, transferring or otherwise disposing of, for or without consideration and by dividend or otherwise, any Equity Interests in the Parent, or any option, warrant or other right to purchase or otherwise acquire any Equity Interests in
the Parent. 
  
 (f) Investments in Other Persons. Make or
hold, or permit any of its Subsidiaries to make or hold, any Investment in any Person, except: 
  
 (i) equity Investments by the Parent and its Subsidiaries in their Subsidiaries outstanding on the date hereof and other Investments in
Obligors, including Persons who become Obligors in a transaction permitted by Section 5.02(d); 
  
 (ii) loans and advances to employees in the ordinary course of the business of the Parent and its Subsidiaries in an aggregate principal
amount not to exceed $1,000,000 at any time outstanding; 
  
 (iii) Investments in Cash Equivalents; 
  
 (iv) Investments existing on the date hereof and described on Schedule 4.01(y) hereto; 
  
 (v) extension of trade credit in the ordinary course of business; 
  
 (vi) Investments permitted pursuant to Section 5.02(d); and 
  
 (vii) intercompany Investments made in connection with a
Permitted Reorganization. 
  
 (g) Restricted Payments.
Declare or pay any dividends, purchase, redeem, retire, defease or otherwise acquire for value any of its Equity Interests now or hereafter outstanding, return any capital to its stockholders, partners or members (or the equivalent Persons thereof)
as such, make any distribution of assets, Equity Interests, obligations or securities to its stockholders, partners or members (or the equivalent Persons thereof) as such (each, a “Restricted Payment”), or permit any of its
Subsidiaries to make a Restricted Payment 

  

 63 








 
except (i) Restricted Payments by a Subsidiary of the Issuer or BTI to the Issuer or BTI, respectively, to other Subsidiaries of the Issuer or BTI that
are the direct or indirect parent of such Subsidiary or BTI and, following the consummation of and in connection with the Permitted Reorganization, by any Subsidiary of any other direct Subsidiary of the Parent to such direct Subsidiary or to any
other Subsidiary of such direct Subsidiary, (ii) if no Event of Default has occurred and is continuing, the declaration and payment by any direct Subsidiary of the Parent of dividends in cash or distributions in cash to the Parent, to pay
(A) scheduled interest and principal of Surviving Debt and (B) cash in lieu of issuing fractional shares of its Capital Stock and payment of stockholders dissenters rights in an aggregate amount not to exceed $500,000, (iii) the
declaration or payment of dividends or distributions solely in Equity Interests of the Parent (including Series A PIK Dividends, Series B PIK Dividends and Series C PIK Dividends), (iv) the purchase, redemption, retirement, defeasance or other
acquisition for value of any of the Equity Interests of the Parent (A) in exchange for other Equity Interests of the Parent (including in connection with a Benefit Plan Exchange Offer), (B) upon the conversion of Preferred Interests of the
Parent or the exercise, exchange or conversion of stock options, warrants or similar rights to acquire Equity Interests of the Parent, (C) in connection with any purchase, redemption, retirement, defeasance or other acquisition for value of
Equity Interests of the Parent tendered by the holder of such Equity Interests in payment of withholding or other taxes relating to the exercise, exchange or conversion of stock options, warrants or other similar rights to acquire Equity Interests
of the Parent or (D) tendered in settlement of indemnification or similar claims by the Parent against a holder of Equity Interests of the Parent or (v) Restricted Payments made in connection with a Permitted Reorganization so long as such
Restricted Payments are made only to an Obligor. 
  
 (h)
Transactions with Shareholders and Affiliates. The Parent shall not, and shall not permit any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction (to the extent such transaction is a reportable event
under Item 404 of Regulation S-K) (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any holder of 5% or more of any class of Equity Interests of the Parent or with any Affiliate of the Parent
or of any such holder, on terms that are less favorable to the Issuer or that Subsidiary, as the case may be, than those that might be obtained at the time from Persons who are not such a holder or Affiliate; provided that the foregoing
restriction shall not apply to (i) any transaction between the Parent and any of its direct and indirect wholly-owned Subsidiaries or between any of its wholly-owned Subsidiaries, (ii) any transaction consummated in connection with a
Permitted Reorganization, (iii) reasonable and customary fees paid to members of the Governing Bodies of the Parent and its Subsidiaries, (iv) the payment of reasonable legal fees and expenses incurred by the Existing Stockholders in
connection with their investment in the Obligors and their Subsidiaries, or (v) any transaction set forth on Schedule 5.02(h); provided, further that in no event shall the Parent or any of its Subsidiaries pay, at any time, any
fees (whether in the form of cash, equity incentives or otherwise) to any Affiliates for management, consulting or similar services. 
  
 (i) Amendments of Constitutive Documents. Amend, or permit any of its Subsidiaries to amend, its certificate of incorporation or bylaws or other
constitutive documents except for any amendment (i) required by or in connection with the Purchase Documents, the First Lien Documents or the Warrant Documents, in each case on the Closing Date, (ii) that 

  

 64 








 
could not reasonably be expected to have a Material Adverse Effect or (iii) in connection with a Permitted Reorganization. 
  
 (j) Accounting Changes. Make or permit, or permit any of its
Subsidiaries to make or permit, any change in (i) accounting policies or reporting practices, except as required by GAAP, or (ii) Fiscal Year. 
  
 (k) Prepayments, Etc., of Debt. (i) Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled amortization or maturity
thereof in any manner, or make any payment in violation of any subordination terms of, any Debt or permit any of its Subsidiaries to do so, except (A) subject to the terms of the Third Lien Intercreditor and Subordination Agreement, the
payment or prepayment of any or all of the Obligations under the Purchase Documents, (B) the payment or prepayment of any or all of the Obligations incurred in accordance with Section 5.02(b)(iii), (C) subject to the terms of the
Second Lien Intercreditor and Subordination Agreement, the payment or prepayment of any or all of the Obligations incurred in accordance with Section 5.02(b)(ii), (D) regularly scheduled or required repayments or redemptions of Surviving
Debt, and (E) the prepayment of intercompany Debt owed by any Obligor to any other Obligor by the Parent or any Subsidiary of the Parent, or (ii) amend, modify or change in any manner any term or condition of any Surviving Debt or any
Subordinated Debt, or permit any of its Subsidiaries to do so, except in each case for any amendment, modification or change of such Surviving Debt or Subordinated Debt that (A) could not reasonably be expected to adversely effect the
Purchasers, (B) would not accelerate the scheduled amortization or final maturity date of such Surviving Debt or Subordinated Debt or increase the amounts due on any scheduled amortization date, (C) would not increase the applicable
interest rate of such Surviving Debt or Subordinated Debt, or permit any of its Subsidiaries to do any of the foregoing, and (D) shall not contain mandatory redemption, prepayment, covenant or event of default provisions materially more
restrictive than the terms of such Surviving Debt or Subordinated Debt prior to the date of such amendment, modification or change. 
  
 (l) Negative Pledge. Enter into or suffer to exist, or permit any of its Subsidiaries to enter into or suffer to exist, any agreement prohibiting
or conditioning the creation or assumption of any Lien upon any of its property or assets except (i) in favor of (A) the Purchasers under this Agreement, (B) the Second Lien Agent and the Second Lien Lenders under the Second Lien Loan
Documents, or (C) the First Lien Lenders under the First Lien Documents or (ii) in connection with (A) any Surviving Debt (as such restriction exists on the date hereof) or (B) any Capitalized Lease permitted under
Section 5.02(b)(iii) solely to the extent that such Capitalized Lease prohibits a Lien on the property subject thereto. 
  
 (m) Partnerships, Etc. Become a general partner in any general or limited partnership or joint venture, or permit any of its Subsidiaries to do so.

  
 (n) Speculative Transactions. Engage, or permit any of
its Subsidiaries to engage, in any transaction involving commodity options or futures contracts or any similar speculative transactions. 
  
 (o) Formation of Subsidiaries. Organize, or permit any Subsidiary to organize, any new Subsidiary except for any Subsidiary so long as (i) any
such Subsidiary shall 

  

 65 








 
be directly or indirectly wholly-owned by the Parent, (ii) there exists no Default or Event of Default both before and after giving effect to the
creation of any new wholly owned Subsidiary and the transfer of any assets to such wholly owned Subsidiary, (iii) immediately upon the creation of any new wholly owned domestic Subsidiary, such Subsidiary shall become a Subsidiary Guarantor,
(iv) the applicable Obligor owning any portions of the stock of any such new wholly owned Subsidiary immediately delivers all shares of stock of the new wholly owned Subsidiary to the Collateral Agent (as defined in the First Lien Note Purchase
Agreement), subject to the provisions of the Intercreditor and Subordination Agreements, for the benefit of the Purchasers, the Second Lien Lenders and the First Lien Lenders, together with stock powers executed in blank, and executes and
immediately delivers to the Collateral Agent pledge agreements pledging all such stock to secure the Obligations and the Obligations under the Second Lien Loan Documents and the First Lien Documents, in form substantially similar to the applicable
Purchase Document provided that clauses (ii), (iii) and (iv) shall not apply to the organization of a Subsidiary of the Parent with de minimis assets solely for the purpose of merging and consolidating such newly organized
Subsidiary with another Subsidiary of the Parent in connection with a Permitted Reorganization, so long as such merger or consolidation is consummated promptly after the organization of such newly organized Subsidiary and the Subsidiary formed by or
surviving such merger or consolidation complies with this Section 5.02(o). 
  
 (p) Payment Restrictions Affecting Subsidiaries. Directly or indirectly, enter into or suffer to exist, or permit any of its Subsidiaries to enter into or suffer to exist, any agreement or arrangement limiting
the ability of any of its Subsidiaries to declare or pay dividends or other distributions in respect of its Equity Interests or repay or prepay any Debt owed to, make loans or advances to, or otherwise transfer assets to or invest in, any Obligor or
a Subsidiary of an Obligor (whether through a covenant restricting dividends, loans, asset transfers or investments, a financial covenant or otherwise), except (i) the Purchase Documents, (ii) the Second Lien Loan Documents, (iii) the
First Lien Documents and (iv) any agreement or instrument evidencing Surviving Debt (as such restriction exists on the date hereof). 
  
 (q) Amendment, Etc., of Material Contracts. Cancel or terminate (except in accordance with the terms thereof) any Material Contract, or consent to
or accept any cancellation or termination thereof (except in accordance with the terms thereof); amend, modify or agree to amend or modify any such Material Contract (other than any amendment or modification to a Material Contract required by any
change in law, rule or regulation applicable to such Material Contract; give any consent, waiver or approval under any Material Contract; waive any default under or breach of any such Material Contract, or take any other action in connection with
any such Material Contract that would impair the value of the interest or rights of any Obligor thereunder or that would impair the interest or rights of any Agent or any Purchaser, or permit any of its Subsidiaries to do any of the foregoing,
except, in each of the foregoing cases (other than any change in law, rule or regulation that requires an amendment or modification of a Material Contract), where to do so would not be reasonably likely to have a Material Adverse Effect. 

 

 66 








 (r) Financial Condition Covenants. 
  
 (i) Maximum Capital Expenditures. Make or commit to make, or allow any of its Subsidiaries to make or
commit to make, Capital Expenditures exceeding, in the aggregate for each period set forth below: 
  

				
	 Period

	  	Amount


	 For the calendar year ending December 31, 2005
	  	$	34,545,000
	 For the calendar year ending December 31, 2006
	  	$	48,791,000

  
 For each of the
calendar years ending December 31, 2007 and December 31, 2008, and the two quarters ending June 30, 2009, no Obligor shall make or commit to make, or allow any of its Subsidiaries to make or commit to make, Capital Expenditures in
excess of 50% of EBITDA for the twelve-month period ending on the last date of each such calendar year or the twelve-month period ended on June 30, 2009, respectively; provided, that in no event shall the maximum amount of Capital
Expenditures for the calendar years ending December 31, 2007 and 2008 exceed $50,000,000 and in no event shall the maximum amount of Capital Expenditures in the twelve month period ending June 30, 2009 exceed $50,000,000. Notwithstanding
the amounts set forth in this Section 5.02(r)(i), the Obligors may carry over to the next calendar year the lesser of (x) 50% of the prior year’s unused Capital Expenditure amount set forth or determined in accordance with the
foregoing and (y) 20% of the prior year’s Capital Expenditure amount. Any such carry over amounts shall carry over to the immediately succeeding year and shall not be cumulative from year to year. 
  
 (ii) Senior Debt Ratio. Commencing on the last day of
the fiscal quarter ending September 30, 2005 and, measured on the last day of each fiscal quarter thereafter until the Termination Date, the Senior Debt Ratio shall not exceed the following: 
  

			
	 Period

	  	Ratio


	 September 30, 2005
	  	3.55
	 December 31, 2005
	  	3.79
	 March 31, 2006
	  	3.88
	 June 30, 2006
	  	4.26
	 September 30, 2006
	  	4.20
	 December 31, 2006
	  	3.91
	 March 31, 2007
	  	3.65
	 June 30, 2007
	  	3.37
	 September 30, 2007
	  	3.15
	 December 31, 2007
	  	3.00
	 March 31, 2008
	  	2.87
	 June 30, 2008
	  	2.83
	 September 30, 2008
	  	2.82
	 December 31, 2008
	  	2.84
	 March 31, 2009
	  	2.85
	 June 30, 2009
	  	2.85

  

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 (iii) Total Leverage Ratio. Commencing on the last day of the fiscal quarter
ending September 30, 2005, and measured on the last day of each fiscal quarter thereafter until the Termination Date, the Total Leverage Ratio shall not exceed the ratio set forth below opposite the applicable date: 
  

			
	 Period

	  	Ratio


	 September 30, 2005
	  	5.84
	 December 31, 2005
	  	6.22
	 March 31, 2006
	  	6.36
	 June 30, 2006
	  	6.99
	 September 30, 2006
	  	6.90
	 December 31, 2006
	  	5.66
	 March 31, 2007
	  	5.89
	 June 30, 2007
	  	5.45
	 September 30, 2007
	  	4.83
	 December 31, 2007
	  	4.60
	 March 31, 2008
	  	4.42
	 June 30, 2008
	  	4.35
	 September 30, 2008
	  	4.35
	 December 31, 2008
	  	4.38
	 March 31, 2009
	  	4.40
	 June 30, 2009
	  	4.42

  
 (iv)
Interest Coverage Ratio. Commencing on the last day of the fiscal quarter ending September 30, 2005, and measured on the last day of each fiscal quarter thereafter until the Termination Date, the Interest Coverage Ratio shall not be less
than the ratio set forth below opposite the applicable date: 
  

			
	 Period

	  	Amount


	 September 30, 2005
	  	2.00
	 December 31, 2005
	  	1.74
	 March 31, 2006
	  	1.43
	 June 30, 2006
	  	1.25
	 September 30, 2006
	  	1.23
	 December 31, 2006
	  	1.47
	 March 31, 2007
	  	1.42
	 June 30, 2007
	  	1.54
	 September 30, 2007
	  	1.65
	 December 31, 2007
	  	1.74
	 March 31, 2008
	  	1.86
	 June 30, 2008
	  	1.89
	 September 30, 2008
	  	1.93
	 December 31, 2008
	  	1.92
	 March 31, 2009
	  	1.91
	 June 30, 2009
	  	1.90

  

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 (v) Minimum Cash. As of the last day of each quarter (commencing
September 30, 2005), permit the sum of (A) cash-on-hand and (B) Cash Equivalents, in each case not subject to a Lien (other than Liens in favor of the Collateral Agent pursuant to the Purchase Documents and Liens in favor of the
applicable collateral agent pursuant to the Second Lien Loan Documents and First Lien Documents) or the use of which is otherwise restricted, to be less than $10,000,000 from the Closing Date through the Termination Date; provided,
however, that no Event of Default shall be triggered by a breach of this Section 5.02(r)(v) unless such breach is not cured by the breaching Obligor by the last day of the succeeding quarter in which this
Section 5.02(r)(v) was breached. 
  
 (vi) Minimum Consolidated EBITDA. As of December 31, 2006, permit Consolidated EBITDA to be less than $60,000,000. 
  
 Section 5.03 Reporting Requirements. So long as any Note or any other Obligation of any Obligor under any Purchase Document shall remain
unpaid, the Obligors shall furnish to the Agents and the Purchasers: 
  
 (a) Default Notice. (i) As soon as possible and in any event within two days after any Senior Officer of any Obligor obtains knowledge of any condition or event that constitutes an Event of Default or any event, development or
occurrence reasonably likely to have a Material Adverse Effect continuing on the date of such statement, a statement of the Chief Financial Officer of the Issuer setting forth details of such Event of Default, or any such event, development or
occurrence and the action that the Issuer has taken and proposes to take with respect thereto and (ii) concurrent with delivery of any notice under or pursuant to the Second Lien Loan Documents not otherwise required to be delivered under this
Section 5.03, copies of such notice. 
  
 (b) Annual
Financials. As soon as available and in any event within 90 days after the end of each Fiscal Year, a copy of an annual report on Form 10-K for such Fiscal Year for the Parent and its Subsidiaries, including therein a Consolidated balance sheet
of the Parent and its Subsidiaries as of the end of such Fiscal Year and a Consolidated statement of income and a Consolidated statement of cash flows of the Parent and its Subsidiaries for such Fiscal Year, in each case accompanied by an opinion
acceptable to the Required Holders of BDO Seidman, LLP or other independent public accountants of recognized standing acceptable to the Required Holders, together with (i) a certificate of such accounting firm to the Purchasers stating that in
the course of the regular audit of the business of the Parent and its Subsidiaries, which 

  

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audit was conducted by such accounting firm in accordance with generally accepted auditing standards, such accounting firm has obtained no knowledge that a
Default has occurred and is continuing under Section 5.02(r) in respect of such Fiscal Year (as determined solely with reference to financial condition covenant maintenance by the Parent and its Subsidiaries as of the conclusion of the
applicable Fiscal Year, rather than on a quarterly basis), or if, in the opinion of such accounting firm, a Default has occurred and is continuing under Section 5.02(r) in respect of such Fiscal Year (as determined solely with reference
to financial condition covenant maintenance by the Parent and its Subsidiaries as of the conclusion of the applicable Fiscal Year, rather than on a quarterly basis), a statement as to the nature thereof, (ii) beginning with the Fiscal Year
ending December 31, 2005, a Financial Covenants Certificate stating the Issuer’s calculation of the ratios set forth in Section 5.02(r) for the last quarter of such Fiscal Year, a statement as to the amount of proceeds from any
sale of assets, including obsolete equipment, received during such Fiscal Year, including a reasonably detailed description of such assets, with supporting documentation and in reasonable detail, and (iii) a Financial Covenants Certificate
stating that the representations and warranties in each Purchase Document are correct in all material respects on and as of such date, other than any such representations or warranties that, by their terms, refer to a specific date other than such
date, in which case as of such date and that no Default has occurred and is continuing or, if a Default has occurred and is continuing, a statement as to the nature thereof and the action that the Issuer has taken and proposes to take with respect
thereto. 
  
 (c) Quarterly Financials. As soon as available
and in any event within 45 days after the end of each of the first three quarters of each Fiscal Year, (i) a Consolidated balance sheet of the Parent and its Subsidiaries as of the end of such quarter and Consolidated statement of income and a
Consolidated statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous fiscal quarter and ending with the end of such fiscal quarter and a Consolidated statement of income and a Consolidated
statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous Fiscal Year and ending with the end of such quarter, setting forth in each case in comparative form the corresponding figures for the
corresponding date or period of the preceding Fiscal Year, (ii) beginning with the fiscal quarter ending September 30, 2005, a Financial Covenants Certificate stating the Issuer’s calculation of the ratios set forth in
Section 5.02(r) for such fiscal quarter with supporting documentation, all in reasonable detail and duly certified (subject to normal year-end audit adjustments) by the Chief Financial Officer of the Parent as having been prepared in
accordance with GAAP (with respect to item (i)), and (iii) a Financial Covenants Certificate stating that the representations and warranties in each Purchase Document are correct in all material respects on and as of such date, other than any
such representations or warranties that, by their terms, refer to a specific date other than such date, in which case as of such date, and that no Default has occurred and is continuing or, if a Default has occurred and is continuing, a statement as
to the nature thereof and the action that the Issuer has taken and proposes to take with respect thereto. 
  
 (d) Monthly Financials. As soon as available and in any event within 30 days after the end of each month, (i) a Consolidated balance sheet of
the Parent and its Subsidiaries as of the end of such month, a Consolidated statement of income and a Consolidated statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous month and ending with
the end of such month, and a Consolidated statement of income 

  

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and a Consolidated statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous Fiscal Year and ending
with the end of such month, setting forth in each case in comparative form the corresponding figures for the preceding month, all in reasonable detail and duly certified by the Chief Financial Officer of the Parent, and (ii) a condensed
receivables aging report, prepared in accordance with the Issuer’s customary practice from time to time, for the Obligors for such month with respect to their major lines of business and any significant specific accounts review necessary to
support bad debt allowances, certified by the Chief Financial Officer of the Parent as fairly and accurately reporting the information described therein, and (iii) a certificate of the Chief Financial Officer of the Parent setting forth
Consolidated EBITDA of the Parent and its Subsidiaries for the last twelve months then ended. 
  
 (e) Compliance Certificates: Together with each delivery of financial statements of the Parent and its Subsidiaries pursuant to subsections (b) and (c) of this Section 5.03, an
officer’s certificate of the Parent stating that the signers have reviewed the terms of this Agreement and have made, or caused to be made under their supervision, a review in reasonable detail of the transactions and condition of the Parent
and its Subsidiaries during the accounting period covered by such financial statements and that such review has not disclosed the existence during or at the end of such accounting period, and that the signers do not have knowledge of the existence
as at the date of such officer’s certificate, of any condition or event that constitutes an Event of Default, or, if any such condition or event existed or exists, specifying the nature and period of existence thereof and what action the Parent
has taken, is taking and proposes to take with respect thereto. 
  
 (f) Reconciliation Statements: If, as a result of any change in accounting principles and policies from those used in the preparation of the audited financial statements referred to in Section 5.03(b), the consolidated
financial statements of the Parent and its Subsidiaries delivered shall differ in any material respect from the consolidated financial statements that would have been delivered pursuant to such subdivisions had no such change in accounting
principles and policies been made, then (i) together with the first delivery of financial statements following such change, consolidated financial statements of the Parent and its Subsidiaries for (A) the current Fiscal Year to the
effective date of such change and (B) the two full Fiscal Years immediately preceding the Fiscal Year in which such change is made, in each case prepared on a pro forma basis as if such change had been in effect during such periods, and
(ii) together with each delivery of financial statements following such change, if required pursuant hereto, a written statement of the Chief Financial Officer of the Parent setting forth the differences (including any differences that would
affect any calculations relating to the financial covenants set forth herein) which would have resulted if such financial statements had been prepared without giving effect to such change. 
  
 (g) Forecasts and Budgets. In addition to the business plan required
to be delivered pursuant to the last sentence of this Section 5.03(g), as soon as available and in any event no later than 45 days after the end of each Fiscal Year, the following prepared by management of the Issuer, in form
satisfactory to the Agent: (i) balance sheets, income statements and cash flow statements on a monthly and annual basis for such Fiscal Year; (ii) balance sheets, income statements and cash flow statements on an annual basis for each
Fiscal Year thereafter until the Termination Date; (iii) a selling, general and administrative expense budget and a capital expenditure budget for the Obligors for each Fiscal Year in form and 

  

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substance reasonably satisfactory to the Agent, and (iv) any other information the Agent may reasonably request. Not less than 45 days before the
beginning of Fiscal Years 2008 and 2009, the Parent shall deliver, or shall cause the Issuer to deliver, a business plan of ITC^DeltaCom, Inc. which sets forth the business plan for such Fiscal Year as proposed by management and approved by the
board of directors of the Parent. 
  
 (h) Litigation.
Promptly after the commencement thereof, notice of all actions, suits, investigations, litigation and proceedings, or, to the knowledge of any Obligor, non-frivolous threat thereof, before any court or governmental department, commission, board,
bureau, agency or instrumentality, domestic or foreign, affecting any Obligor or any of its Subsidiaries of the type described in Section 4.01(f), and promptly after the occurrence thereof, notice of any adverse change in the status or
the financial effect on any Obligor or any of its Subsidiaries of the Disclosed Litigation from that described on Schedule 4.01(f) hereto. 
  
 (i) Securities Reports. Promptly after the sending or filing thereof, copies of all proxy statements, financial statements and reports that any
Obligor or any of its Subsidiaries sends to its stockholders, and copies of all regular, periodic and special reports, and all registration statements, that any Obligor or any of its Subsidiaries files with the SEC or any Governmental Authority that
may be substituted therefor, or with any national securities exchange. 
  
 (j) Creditor Reports. Promptly after the furnishing thereof, copies of any statement or report furnished to any holder of Debt securities of any Obligor or of any of its Subsidiaries pursuant to the terms of any indenture, loan or
credit or similar agreement and not otherwise required to be furnished to the Purchasers pursuant to any other clause of this Section 5.03. 
  
 (k) Agreement Notices. Promptly upon receipt thereof by any Obligor or any of its Subsidiaries, copies of (i) all notices and other documents
pursuant or related to any material debt instrument, indenture, loan or credit or similar agreement and (ii) all notices and other documents regarding termination (actual or threatened), defaults, alleged or actual breaches, nonrenewal, and
other material matters (other than in accordance with the terms of such agreement or material amendment) under or pursuant to any Material Contract, only if such termination, default, breach, nonrenewal or other matter would be reasonably likely to
have a Material Adverse Effect on the Obligors and their Subsidiaries, taken as a whole, and from time to time upon request by the Agent, such information and reports regarding the related documents, the Material Contracts and such instruments,
indentures and loan and credit and similar agreements as the Agent or any Purchaser may reasonably request. 
  
 (l) Revenue Agent Reports. Within 10 days after receipt, copies of all Revenue Agent Reports (Internal Revenue Service Form 886), or other written
proposals of the Internal Revenue Service, that propose, determine or otherwise set forth positive adjustments to the Federal income tax liability of the affiliated group (within the meaning of Section 1504(a)(1) of the Internal Revenue Code)
of which the Issuer is a member aggregating $2,000,000 or more. 
  
 (m) Tax Certificates. (x) Promptly, and in any event within 15 Business Days after the due date (with extensions) for filing the final Federal income tax return in respect of 

  

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each taxable year, a certificate (a “Tax Certificate”), signed by the President or the Chief Financial Officer of the Issuer, stating that
the Obligors have paid to the Internal Revenue Service or other taxing authority, the full amount that the Obligors are required to pay in respect of Federal income tax for such year and that the Obligors have received any amounts payable to them,
and have not paid amounts in respect of taxes (Federal, state, local or foreign) in excess of the amount they are required to pay, under the Tax Agreement in respect of such taxable year, and (y) all correspondence between any Obligor and the
Internal Revenue Service or other taxing authority relating to any request for, grant of and compliance with any extensions granted with respect to the filing of any income tax returns. 
  
 (n) ERISA. 
  
 (i) ERISA Events and ERISA Reports. (A) Promptly and in any event within 10 days after any Obligor or any ERISA Affiliate
knows or has reason to know that any ERISA Event has occurred, a statement of the Chief Financial Officer of the Issuer describing such ERISA Event and the action, if any, that such Obligor or such ERISA Affiliate has taken and proposes to take with
respect thereto and (B) on the date any records, documents or other information must be furnished to the PBGC with respect to any Plan pursuant to Section 4010 of ERISA, a copy of such records, documents and information. 
  
 (ii) Plan Terminations. Promptly and in any event
within two Business Days after receipt thereof by any Obligor or any ERISA Affiliate, copies of each notice from the PBGC stating its intention to terminate any Plan or to have a trustee appointed to administer any Plan. 
  
 (iii) Plan Annual Reports. Promptly and in any event
within 30 days after the filing thereof with the Internal Revenue Service, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) with respect to each Plan. 
  
 (iv) Multiemployer Plan Notices. Promptly and in any
event within five Business Days after receipt thereof by any Obligor or any ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of each notice concerning (A) the imposition of Withdrawal Liability by any such Multiemployer Plan,
(B) the reorganization or termination, within the meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the amount of liability incurred, or that is reasonably expected to be incurred, by such Obligor or any ERISA Affiliate
in connection with any event described in clause (A) or (B). 
  
 (o) Environmental Conditions. Promptly after the assertion or occurrence thereof, notice of any Environmental Action against or of any noncompliance by any Obligor or any of its Subsidiaries with any Environmental Law or
Environmental Permit that could (i) reasonably be expected to have a Material Adverse Effect or (ii) cause any property described in the Mortgages to be subject to any restrictions on ownership, occupancy, use or transferability under any
Environmental Law. 
  

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 (p) Real Property. (i) As soon as available and in any event within 30 days after the end of
each Fiscal Year, a report supplementing Schedules 4.01(w) and 4.01(x) hereto, including an identification of all owned and leased real property disposed of by any Obligor or any of its Subsidiaries during such Fiscal Year, a list and
description (including the street address, county or other relevant jurisdiction, state, record owner, book value thereof and, in the case of leases of property, lessor, lessee, expiration date and annual rental cost thereof) of all real property
acquired or leased during such Fiscal Year and a description of such other changes in the information included in such Schedules as may be necessary for such Schedules to be accurate and complete and (ii) promptly inform the Agent of any
investments in any of the real property listed on Schedule 4.01(w) hereto proposed to be made by any Obligor such that thereafter, the value thereof shall exceed $1,000,000 individually. 
  
 (q) Insurance. As soon as available and in any event within 30 days
after the end of each Fiscal Year, a report summarizing the insurance coverage (specifying type, amount and carrier) in effect for each Obligor and its Subsidiaries and containing such additional information as any Agent, or any Purchaser through
the Agent, may reasonably specify. As soon as practicable after any material change in insurance coverage maintained by the Parent and its Subsidiaries notice thereof to each Purchaser and the Agent specifying the changes and reasons therefore.

  
 (r) Damage or Destruction. The Issuer shall give each
Purchaser and the Agent prompt notice of any loss, damage, or destruction of Property in excess of $5,000,000, whether or not covered by the insurance policies described in Section 5.01(d). 
  
 (s) New Accounts. Promptly after opening an account with a bank or
other financial institution not subject to an account control agreement, notification thereof. 
  
 (t) Other Information. Such other information respecting the business, condition (financial or otherwise), operations, performance, properties or prospects of any Obligor or any of its Subsidiaries as the
Agent, or any Purchaser through the Agent, may from time to time reasonably request. 
  
 (u) Governing Body. With reasonable promptness, written notice of any change in the Governing Body of any Obligor. 
  
 (v) New Subsidiaries. Promptly upon any Person becoming a Subsidiary, a written notice setting forth with respect to such Person (a) the date
on which such Person became a Subsidiary and (b) the jurisdiction of its incorporation, its directors and senior officers, the number of shares of each class of its Equity Interests authorized, and the number then outstanding and the percentage
of each such class of its Equity Interests owned (directly or indirectly) by an Obligor and the number of shares covered by all outstanding options, warrants, rights of conversion or purchase and similar rights at the date thereof. 
  
 ARTICLE VI. EVENTS OF DEFAULT 
  
 Section 6.01 Events of Default. If any of the following events
(“Events of Default”) shall occur and be continuing: 
  
 (a) (i) the Issuer shall fail to pay any principal of any Note when the same shall become due and payable or (ii) the Issuer shall fail to pay any interest on any Note, or any Obligor shall fail to make any other payment under any
Purchase Document, in each case under this clause (ii) within three Business Days after the same becomes due and payable; or 
  

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 (b) any representation or warranty made by any Obligor (or any of its officers) under or in connection
with any Purchase Document shall prove to have been incorrect or false in any material respect when made; or 
  
 (c) any Obligor shall fail to perform, comply or observe any term, covenant or agreement contained in Sections 2.03, 5.01 (e), (f), (i), (j),
(m), (n) (r) or (s), 5.02 or 5.03; provided, that failure to comply with the covenants set forth in Sections 2.03, 5.01(r) or 5.01(s) shall not constitute an Event of Default unless and
until such failure shall remain unremedied for three Business Days; and provided, further, that failure to comply with any other covenants hereunder for which specific cure periods are otherwise provided herein shall not constitute an
Event of Default unless and until such failure shall remain unremedied for the duration of the applicable specific cure period so provided; or 
  
 (d) any Obligor shall fail to perform or observe any other term, covenant or agreement contained in any Purchase Document on its part to be performed or
observed if such failure shall remain unremedied for 30 days after the earlier of the date on which (i) a Responsible Officer becomes aware of such failure or (ii) written notice thereof shall have been given to the Issuer by any Agent or
any Purchaser; or 
  
 (e) any Obligor or any of its Subsidiaries
shall fail to pay any principal of, premium or interest on or any other amount payable in respect of any Debt that is outstanding in a principal amount (or, in the case of any Hedge Agreement, an Agreement Value) of at least $2,000,000 either
individually or in the aggregate (but excluding Debt outstanding hereunder) of such Obligor or such Subsidiary (as the case may be), when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or
otherwise); or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the maturity of such Debt
or otherwise to cause, or to permit the holder thereof to cause, such Debt to mature; or any such Debt shall be declared to be due and payable or required to be prepaid or redeemed (other than by a regularly scheduled required prepayment or
redemption), purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof; or 
  
 (f) 
  
 (i) A court having jurisdiction shall enter a decree or order for relief in respect of any Obligor or any of its Subsidiaries in an
involuntary case under the U.S. Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, which decree or order is not stayed; or any other similar relief shall be granted under any applicable
federal or state law; or 
  

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 (ii) an involuntary case shall be commenced against any Obligor or any of its
Subsidiaries under the U.S. Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect; or a decree or order of a court having jurisdiction in the premises for the appointment of a receiver,
liquidator, sequestrator, trustee, custodian or other officer having similar powers over any Obligor or any of its Subsidiaries, or over all or a substantial part of its property, shall have been entered; or there shall have occurred the involuntary
appointment of an interim receiver, trustee or other custodian of any Obligor or any of its Subsidiaries for all or a substantial part of its property; or a warrant of attachment, execution or similar process shall have been issued against any
substantial part of the property of any Obligor or any of its Subsidiaries, and any such event described in this clause (ii) shall continue for 60 days unless dismissed, bonded or discharged; or 
  
 (iii) any Obligor or any of its Subsidiaries shall have an
order for relief entered with respect to it or commence a voluntary case under the U.S. Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or shall consent to the entry of an order for
relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, or shall consent to the appointment of or taking possession by a receiver, trustee or other custodian for all or a substantial part
of its property; or any Obligor or any of its Subsidiaries shall make any assignment for the benefit of creditors; or 
  
 (iv) any Obligor or any of its Subsidiaries shall be unable, or shall fail generally, or shall admit in writing its inability, to pay its
debts as such debts become due; or the Governing Body of any Obligor or any of its Subsidiaries (or any committee thereof) shall adopt any resolution or otherwise authorize any action to approve any of the actions referred to in clause
(iii) above or this clause (iv); or 
  
 (g) one or more
judgments or decrees shall be entered against any one or more Obligors or any of their Subsidiaries and such judgments and decrees either shall be final and non-appealable or shall not be vacated, discharged or stayed for any period of 10
consecutive days, and the aggregate amount of all such judgments (to the extent not paid or to the extent not covered by insurance provided by a carrier that has acknowledged coverage) equals or exceeds $5,000,000; or 
  
 (h) any non-monetary judgment or order shall be rendered against any Obligor
or any of its Subsidiaries that could be reasonably likely to have a Material Adverse Effect, and there shall be any period of 10 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or
otherwise, shall not be in effect; or 
  
 (i) any material license
issued by the FCC or any applicable PUC necessary for the conduct of the business of the Obligors shall have been (x) revoked and such license shall not have been reinstated within 60 days or (y) amended and such amendment would reasonably
be likely to result in a Material Adverse Effect; or 
  

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 (j) any provision of any Purchase Document after delivery thereof pursuant to Section 3.01 or
5.01(j) or (n) shall for any reason cease to be valid and binding on or enforceable against any Obligor to it, or any such Obligor shall so state in writing; or 
  
 (k) any Collateral Document after delivery thereof pursuant to Section 3.01 or 5.01(j) shall for any
reason (other than pursuant to the terms thereof) cease to create a valid and perfected third priority lien on and security interest in the Collateral purported to be covered thereby or shall cease to be in full force and effect; or 
  
 (l) a Change of Control shall occur; or 
  
 (m) any ERISA Event shall have occurred with respect to a Plan and the sum
(determined as of the date of occurrence of such ERISA Event) of the Insufficiency of such Plan and the Insufficiency of any and all other Plans with respect to which an ERISA Event shall have occurred and then exist (or the liability of the
Obligors and the ERISA Affiliates related to such ERISA Event) exceeds $2,000,000; or 
  
 (n) any Obligor or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that it has incurred Withdrawal Liability to such Multiemployer Plan in an amount that, when aggregated with all
other amounts required to be paid to Multiemployer Plans by the Obligors and the ERISA Affiliates as Withdrawal Liability (determined as of the date of such notification), exceeds $2,000,000 or requires payments exceeding $1,000,000 per annum; or

  
 (o) any Obligor or any ERISA Affiliate shall have been
notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or is being terminated, within the meaning of Title IV of ERISA, and as a result of such reorganization or termination the aggregate annual
contributions of the Obligors and the ERISA Affiliates to all Multiemployer Plans that are then in reorganization or being terminated have been or shall be increased over the amounts contributed to such Multiemployer Plans for the plan years of such
Multiemployer Plans immediately preceding the plan year in which such reorganization or termination occurs by an amount exceeding $1,000,000; or 
  
 (p) an “Event of Default” (as defined in any Mortgage) shall have occurred and be continuing; or 
  
 (q) an “Event of Default” shall have occurred and be continuing
under the Second Amended Second Lien Credit Agreement or the First Lien Credit Agreement; or 
  
 (r) the Parent Guaranty or the Subsidiary Guaranty with respect to any Subsidiary Guarantor shall cease to be in full force and effect or the Parent or any Subsidiary Guarantor or any Person acting on behalf of the
Parent or any Subsidiary Guarantor shall contest in any manner the validity, binding nature or enforceability of the Parent Guaranty or the Subsidiary Guaranty; or 
  
 (s) any Interconnection Agreement shall have been terminated by any party thereto and the applicable Obligor shall not have
entered into a replacement Interconnection 

  

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Agreement substantially similar in scope on commercially reasonable terms within 30 days and such termination is reasonably likely to result in a Material
Adverse Effect; or 
  
 (t) the Parent or any of its
Subsidiaries shall be convicted under any criminal law that could reasonably be expected to lead to a forfeiture of any material property of such Person; or 
  
 (u) the directors and officers’ insurance coverage maintained pursuant to Section 5.01(d) shall lapse or fail to cover representatives of
the Agent and/or Purchasers who are members of the board of directors of the Parent; or 
  
 (v) any event or change shall occur that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect, and shall remain unremedied for a period of 30 days; or 
  
 (w) any payment by the Parent or any of its Subsidiaries (or any agreement by
the Parent or its Subsidiaries to make payment) of money to another party to an Interconnection Agreement in settlement of any dispute in excess of $25,000,000 above the accrued or reserved costs for any such payment in the Consolidated financial
statements of the Parent and its Subsidiaries provided to the Purchasers under Section 5.03; 
  
 then, and in any such event, the Agent shall at the request, or may with the consent, of the Required Holders, by notice to the Issuer, declare the Notes, all interest thereon, the Prepayment Fee and all other amounts
payable under this Agreement and the other Purchase Documents to be forthwith due and payable, whereupon the Notes, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further
notice of any kind, all of which are hereby expressly waived by the Issuer; provided, however, that in the event of an actual or deemed entry of an order for relief with respect to the Issuer under the Bankruptcy Code, the
Notes, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Issuer. 
  
 ARTICLE VII. GUARANTY 
  
 Section 7.01 Guaranty; Limitation of Liability. 
  
 (a) Each Guarantor, jointly and severally, hereby absolutely, unconditionally
and irrevocably guarantees the punctual payment when due, whether at scheduled maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all Obligations of each other Obligor now or hereafter existing under or in
respect of the Purchase Documents (including, without limitation, any extensions, modifications, substitutions, amendments or renewals of any or all of the foregoing Obligations), whether direct or indirect, absolute or contingent, and whether for
principal, interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise (such obligations being the “Guaranteed Obligations”), and agrees to pay any and all reasonable expenses (including, without
limitation, reasonable fees and expenses of counsel) incurred by the Agent or any other Secured Party in enforcing any rights under this Agreement or any other Purchase Document. Without limiting the generality of the foregoing, each
Guarantor’s liability shall extend to all amounts that constitute part of the 

  

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Guaranteed Obligations and would be owed by any other Obligor to any Secured Party under or in respect of the Purchase Documents but for the fact that they
are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such other Obligor. 
  
 (b) Each Guarantor, and by its acceptance of this Agreement, the Agent and each other Secured Party, hereby confirms that it is the intention of all such
Persons that this Agreement and the Obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar foreign, federal or state law to the extent applicable to this Guaranty and the Obligations of each Guarantor hereunder. To effectuate the foregoing intention, the Agent, the other Purchasers and the Guarantors hereby irrevocably agree that
the obligations of each Guarantor under this Guaranty at any time shall be limited to the maximum amount as shall result in the Obligations of such Guarantor under this Agreement not constituting a fraudulent transfer or conveyance. 
  
 (c) Each Guarantor hereby unconditionally and irrevocably agrees that in the
event any payment shall be required to be made to any Secured Party under this Agreement or any other guaranty, such Guarantor shall contribute, to the maximum extent permitted by law, such amounts to each other Guarantor and each other guarantor so
as to maximize the aggregate amount paid to the Secured Parties under or in respect of the Purchase Documents. 
  
 Section 7.02 Guaranty Absolute. Each Guarantor guarantees that the Guaranteed Obligations shall be paid strictly in accordance with the terms
of the Purchase Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any Purchaser with respect thereto. The obligations of each Guarantor under or in
respect of this Agreement are independent of the Guaranteed Obligations or any other obligations of any other Obligor under or in respect of the Purchase Documents, and a separate action or actions may be brought and prosecuted against each
Guarantor to enforce this Agreement, irrespective of whether any action is brought against the Issuer or any other Obligor or whether the Issuer or any other Obligor is joined in any such action or actions. The liability of each Guarantor under this
Agreement shall be irrevocable, absolute and unconditional irrespective of, and each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to, any or all of the following: 
  
 (a) any lack of validity or enforceability of any Purchase Document or any
agreement or instrument relating thereto; 
  
 (b) any change in
the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations or any other obligations of any other Obligor under or in respect of the Purchase Documents, or any other amendment or waiver of or any
consent to departure from any Purchase Document, including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to any Obligor or any of its Subsidiaries or otherwise; 
  

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 (c) any taking, exchange, release or non-perfection of any collateral, or any taking, release or
amendment or waiver of, or consent to departure from, any other guaranty, for all or any of the Guaranteed Obligations; 
  
 (d) any manner of application of Collateral or any other collateral, or proceeds thereof, to all or any of the Guaranteed Obligations, or any manner of
sale or other disposition of any collateral for all or any of the Guaranteed Obligations or any other obligations of any Obligor under the Purchase Documents or any other assets of any Obligor or any of its Subsidiaries; 
  
 (e) any change, restructuring or termination of the corporate structure or
existence of any Obligor or any of its Subsidiaries; 
  
 (f) any
failure of any Secured Party to disclose to any Obligor any information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Obligor now or hereafter known to such Secured
Parties (each Guarantor waiving any duty on the part of the Secured Parties to disclose such information); 
  
 (g) the failure of any other Person to execute or deliver this Agreement, any Guaranty Supplement or any other guaranty or agreement or the release or
reduction of liability of any Guarantor or other guarantor or surety with respect to the Guaranteed Obligations; or 
  
 (h) any other circumstance (including, without limitation, any statute of limitations) or any existence of or reliance on any representation by any
Secured Party that might otherwise constitute a defense available to, or a discharge of, any Obligor or any other guarantor or surety. 
  
 This Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed Obligations is rescinded or must
otherwise be returned by the Agent or any Secured Party or any other Person upon the insolvency, bankruptcy or reorganization of the Issuer or any other Obligor or otherwise, all as though such payment had not been made. 
  
 Section 7.03 Waivers and Acknowledgments. 
  
 (a) Each Guarantor hereby unconditionally and irrevocably waives promptness,
diligence, notice of acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this Agreement and any requirement
that any Secured Party protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any action against any Obligor or any other Person or any Collateral. 
  
 (b) Each Guarantor hereby unconditionally and irrevocably waives any right to
revoke this Agreement and acknowledges that this Agreement is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future. 
  

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 (c) Each Guarantor hereby unconditionally and irrevocably waives (i) any defense arising by reason
of any claim or defense based upon an election of remedies by any Secured Party that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such
Guarantor or other rights of such Guarantor to proceed against any of the other Obligors, any other guarantor or any other Person or any collateral and (ii) any defense based on any right of set-off or counterclaim against or in respect of the
Obligations of such Guarantor hereunder. 
  
 (d) Each Guarantor
hereby unconditionally and irrevocably waives any duty on the part of any Secured Party to disclose to such Guarantor any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or
prospects of any other Obligor or any of its Subsidiaries now or hereafter known by such Secured Party. 
  
 (e) Each Guarantor acknowledges that it shall receive substantial direct and indirect benefits from the financing arrangements contemplated by the
Purchase Documents and that the waivers set forth in Section 7.02 and this Section 7.03 are knowingly made in contemplation of such benefits. 
  
 Section 7.04 Subrogation. Each Guarantor hereby unconditionally and irrevocably agrees not to exercise any
rights that it may now have or hereafter acquire against the Issuer or any other Obligor or any other inside guarantor that arise from the existence, payment, performance or enforcement of such Guarantor’s Obligations under or in respect of
this Agreement or any other Purchase Document, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of any Secured Party against the
Issuer, any other Obligor or any other insider guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation, the right to take or receive from the
Issuer, any other Obligor or any other insider guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right, unless and until all of the Guaranteed
Obligations and all other amounts payable under this Agreement shall have been paid in full in cash. If any amount shall be paid to any Guarantor in violation of the immediately preceding sentence at any time prior to the latest of (a) the
payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Agreement, and (b) the Termination Date, such amount shall be received and held in trust for the benefit of the Secured Parties, shall be segregated
from other property and funds of such Guarantor and shall forthwith be paid or delivered to the Agent in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all
other amounts payable under this Agreement, whether matured or unmatured, in accordance with the terms of the Purchase Documents, or to be held as collateral for any Guaranteed Obligations or other amounts payable under this Agreement thereafter
arising. If (i) any Guarantor shall make payment to any Secured Party of all or any part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and all other amounts payable under this Agreement shall have been paid in full
in cash, and (iii) the Termination Date shall have occurred, the Secured Parties will, at such Guarantor’s request and expense, execute and deliver to such Guarantor appropriate documents, without recourse and without representation or
warranty, necessary to evidence the transfer by subrogation to such Guarantor 

  

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of an interest in the Guaranteed Obligations resulting from such payment made by such Guarantor pursuant to this Agreement. 
  
 Section 7.05 Guaranty Supplements. Upon the execution and
delivery by any Person of a guaranty supplement in substantially the form of Exhibit G hereto (each, a “Guaranty Supplement”), (a) such Person shall be referred to as a “Additional Guarantor” and shall
become and be a Guarantor hereunder, and each reference in this Agreement to a “Guarantor” shall also mean and be a reference to such Additional Guarantor, and each reference in any other Purchase Document to a “Subsidiary
Guarantor” shall also mean and be a reference to such Additional Guarantor, and (b) each reference herein to “this Guaranty,” “hereunder,” “hereof” or words of like import referring to
this Agreement, and each reference in any other Purchase Document to the “Guaranty,” “thereunder,” “thereof” or words of like import referring to this Agreement, shall mean and be a reference to
this Agreement as supplemented by such Guaranty Supplement. 
  
 Section 7.06 Subordination. Each Guarantor hereby subordinates any and all debts, liabilities and other Obligations owed to such Guarantor by each other Obligor (the “Subordinated Obligations”) to the Guaranteed
Obligations to the extent and in the manner hereinafter set forth in this Section 7.06: 
  
 (a) Prohibited Payments, Etc. Except during the continuance of a Default (including the commencement and continuation of any proceeding under any
Bankruptcy Law relating to any other Obligor), each Guarantor may receive regularly scheduled payments from any other Obligor on account of the Subordinated Obligations. After the occurrence and during the continuance of any Default (including the
commencement and continuation of any proceeding under any bankruptcy law relating to any other Obligor), however, unless the Required Holders otherwise agree, no Guarantor shall demand, accept or take any action to collect any payment on account of
the Subordinated Obligations. 
  
 (b) Prior Payment of
Guaranteed Obligations. In any proceeding under the Bankruptcy Code (or similar law) relating to any other Obligor, each Guarantor agrees that the Secured Parties shall be entitled to receive payment in full in cash of all Guaranteed Obligations
(including Post-Petition Interest) before such Guarantor receives payment of any Subordinated Obligations. 
  
 (c) Turn-Over. After the occurrence and during the continuance of any Default (including the commencement and continuation of any proceeding under
any Bankruptcy Law relating to any other Obligor), each Guarantor shall, if the Agent so requests, collect, enforce and receive payments on account of the Subordinated Obligations as trustee for the Secured Parties and deliver such payments to the
Agent on account of the Guaranteed Obligations (including all Post-Petition Interest), together with any necessary endorsements or other instruments of transfer, but without reducing or affecting in any manner the liability of such Guarantor under
the other provisions of this Agreement. 
  
 (d) Agent
Authorization. After the occurrence and during the continuance of any Default (including the commencement and continuation of any proceeding under the Bankruptcy Code (or similar law) relating to any other Obligor), the Agent is authorized and
empowered (but without any obligation to so do), in its discretion, (i) in the name of each 

  

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Guarantor, to collect and enforce, and to submit claims in respect of, Subordinated Obligations and to apply any amounts received thereon to the Guaranteed
Obligations (including any and all Post-Petition Interest), and (ii) to require each Guarantor (A) to collect and enforce, and to submit claims in respect of, Subordinated Obligations and (B) to pay any amounts received on such
obligations to the Agent for application to the Guaranteed Obligations (including any and all Post-Petition Interest). 
  
 Section 7.07 Continuing Guaranty; Assignments. This Agreement is a continuing guaranty and shall (a) remain in full force and effect
until the latest of (i) the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Agreement and (ii) the Termination Date, (b) be binding upon the Guarantor, its successors and assigns and
(c) inure to the benefit of and be enforceable by the Secured Parties and their successors, transferees and assigns. Without limiting the generality of clause (c) of the immediately preceding sentence, subject to Section 9.07,
any Secured Party may assign or otherwise transfer all or any portion of its rights and obligations under this Agreement (including, without limitation, all or any portion of its Notes owing to it and the Note or Notes held by it) to any other
Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Secured Party herein or otherwise, in each case as and to the extent provided in Section 9.07. No Guarantor shall have
the right to assign its rights hereunder or any interest herein without the prior written consent of the Secured Parties. 
  
 Section 7.08 Release of Guarantor. In the event that all of the capital stock of one or more Guarantors is sold or otherwise disposed of
(except to the Issuer, BTI or any Subsidiary of the Issuer or BTI) or liquidated in compliance with the requirements of this Agreement (or such sale or other disposition or liquidation has been approved in writing by the Required Holders) and the
proceeds of such sale, disposition or liquidation are applied in accordance with the provisions of this Agreement, to the extent applicable, such Guarantor shall be released from this Agreement and this Agreement shall, as to each such Guarantor or
Guarantors, terminate, and have no further force or effect (it being understood and agreed that the sale of one or more persons that own, directly or indirectly, all of the capital stock or partnership interests of any Guarantor shall be deemed to
be a sale of such Guarantor for the purposes of this Section 7.08). 
  
 ARTICLE VIII. ADDITIONAL POWERS OF AGENTS 
  
 Section 8.01 Appointment. Each of the Purchasers hereby irrevocably appoints the Agent as its agent hereunder and under the other Purchase Documents, and the Collateral Agent as its collateral agent to act
on behalf of the Purchasers hereunder and under the other Purchase Documents, and in each case authorizes the Agent and the Collateral Agent to take such actions on its behalf and to exercise such powers as are delegated to the Agent and/or the
Collateral Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto, including, without limitation, the right of the Collateral Agent to sign, file or authorize the filing of, and otherwise
perform each act necessary in connection with, the release of any lien as a result of any permitted sale, lease, transfer or disposal of assets in accordance with the Purchase Documents. Any reference herein to the Agent shall include the Agent in
its capacity as Agent hereunder and in any Purchase Document and any reference herein to the Collateral Agent shall include the Collateral Agent in its capacity as Collateral 

  

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Agent hereunder and under any Purchase Document. Each Purchaser does hereby make, constitute and appoint the Agent or the Collateral Agent, as the case may
be, its true and lawful attorney-in-fact with full powers of substitution and resubstitution for such Purchaser and in its name, place and stead, in any and all capacities, to execute for such Purchaser and on its behalf any document or agreement
for which the Agent or the Collateral Agent, as the case may be, is empowered to act on behalf of such Purchaser under this Article VIII, granting to the Agent or the Collateral Agent, as the case may be, full power and authority to do and
perform each act requisite and necessary to be done, as fully to all intents and purposes as the Purchaser could do in person, provided that such power shall be granted only to the extent necessary to undertake the actions permitted to be done or
taken by the Agent or the Collateral Agent under this Article VIII and the Purchase Documents. Each of the Purchasers hereby irrevocably authorizes the Agents to take such action on their behalf under the provisions of this Agreement, the
other Purchase Documents and any other instruments and agreements referred to herein or therein and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of the Agents by the terms
hereof and thereof and such other powers as are reasonably incidental hereto and thereto. The Agent and the Collateral Agent may perform any of their respective duties hereunder by or through their respective officers, directors, agents, employees
or affiliates. Neither the Agent and the Collateral Agent shall have, by reason of this Agreement or any of the other Purchase Documents, a fiduciary relationship in respect of any Purchaser or the Parent, and nothing in this Agreement or any of the
other Purchase Documents, expressed or implied, is intended to or shall be so construed as to impose upon the Agent and the Collateral Agent any obligations in respect of this Agreement or any of the other Purchase Documents except as expressly set
forth herein or therein. Each Purchaser hereby accepts the pledges, mortgages and fiduciary assignments created for its benefit under the Security Agreement and empowers the Collateral Agent to enter into such agreements and act as Collateral Agent
on behalf and for the benefit of each Purchaser. The provisions of this Article VIII are solely for the benefit of the Agent and the Collateral Agent and the Purchasers, and neither the Parent nor any of the Subsidiaries or Affiliates of the Parent
shall have any rights as a third party beneficiary of any of the provisions hereof. In performing its functions and duties under this Agreement, the Agent and the Collateral Agent shall act solely as agents of the Purchasers and neither the Agent
nor the Collateral Agent shall assume and shall be deemed to have assumed any fiduciary relationship or other obligation or relationship of agency or trust with the Parent or for any of its Subsidiaries or Affiliates. 
  
 Section 8.02 Rights of Agent. With respect to its obligation to
make Notes under this Agreement, the Agent shall have the rights and powers specified herein for a “Purchaser” and may exercise the same rights and powers as though it were not performing the duties specified herein; and the term
“Purchasers,” “Required Holders,” “holders of Notes” or any similar terms shall, unless the context clearly otherwise indicates, include the Agent in its individual capacity as such (as the case may be). The Agent and
its affiliates may accept deposits from, lend money to, and generally engage in any kind of banking, investment banking, trust or other business with, or provide debt financing, equity capital or other services (including financial advisory
services) to, the Parent or any of their Affiliates (or any Person engaged in similar business with the Parent or any Affiliate thereof) as if they were not performing the duties specified herein, and may accept fees and other consideration from the
Parent or any of their Affiliates for services in connection with this Agreement and otherwise without having to account for the same to the Purchasers. 
  

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 Section 8.03 Administration of the Collateral. The Collateral Agent shall administer the
Collateral and any Lien thereon for the benefit of the Purchasers in the manner provided herein and in the Security Agreement and in any other related Purchase Documents; provided, however, that in the event of conflict between the
provisions relating to administration of Collateral included in this Agreement and those included in the Security Agreement, the latter shall prevail. The Collateral Agent shall exercise such rights and remedies with respect to the Collateral as are
granted to it hereunder and as Collateral Agent under the Security Agreement and related documents and applicable law and as shall be directed by the Required Holders. Upon payment in full of all Obligations under the Purchase Documents, the
Collateral Agent and its Affiliates shall promptly release any and all Liens, Collateral and other security arrangements entered into in connection with this Agreement, the Purchase Documents and the transactions contemplated hereby and thereby.

  
 Section 8.04 Application of Proceeds. Except as
otherwise specifically provided herein and in the other Purchase Documents, the proceeds of any collection, sale, disposition, foreclosure or other realization of all or any part of the Collateral shall be applied by the Collateral Agent in the
following order of priority: 
  
 (a) FIRST: to the payment of all
costs, taxes and expenses of such collection, sale, disposition, foreclosure or other realization, including reasonable compensation to the Collateral Agent, the Agent, and their respective agents and counsel in connection therewith, and all other
expenses, liabilities and advances made or incurred by the Agent or Collateral Agent in connection therewith, and all amounts for which the Collateral Agent is entitled to indemnification under any Collateral Document and all advances made by the
Agent or Collateral Agent under any Collateral Document for the account of any Obligor, and to the payment of all costs and expenses paid or incurred by the Agent or Collateral Agent in connection with the exercise of any right or remedy under any
Collateral Document; 
  
 (b) SECOND: to the payment of any other
amounts payable to the Agent in its capacity as Agent under the Purchase Documents; 
  
 (c) THIRD: to the payment of the accrued and unpaid interest in respect of the Notes; 
  
 (d) FOURTH: to the payment of the outstanding principal and Prepayment Fee due under the Notes, if any; 
  
 (e) FIFTH: to the payment of all other unpaid Obligations of the Obligors
under the Purchase Documents, if any; and 
  
 (f) SIXTH: any
surplus remaining after payment of the foregoing amounts shall be paid to the Issuer by the Agent, subject, however, to the rights of the holder of any then existing Lien of which the Agent has actual notice (without investigation); it being
understood that the Issuer shall remain liable to the extent of any deficiency between the amount of the proceeds of the Collateral and the aggregate amount of the sums referred to in clauses (a) through (e) of this
Section 8.04. 
  

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 Section 8.05 Duties of Agents. The Agent and the Collateral Agent shall not have any duties
or obligations except those expressly set forth herein and in the other Purchase Documents. Without limiting the generality of the foregoing, (a) neither the Agent nor the Collateral Agent shall be subject to any fiduciary or other implied
duties, regardless of whether a Default has occurred and is continuing, (b) neither the Agent nor the Collateral Agent shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and
powers expressly contemplated hereby or by the other Purchase Documents that the Agent or the Collateral Agent is required to exercise in writing by the Required Holders, and (c) except as expressly set forth herein and in the other Purchase
Documents, neither the Agent nor the Collateral Agent shall have any duty to disclose, nor shall be liable for the failure to disclose, any information relating to the Parent or any of its Subsidiaries that is communicated to or obtained by the
entity serving as the Agent, Collateral Agent or any of their Affiliates in any capacity. Neither the Agent nor the Collateral Agent shall be liable for any action taken or not taken by it with the consent or at the request of the Required Holders
or in the absence of its own gross negligence or willful misconduct. Neither the Agent nor the Collateral Agent shall be deemed to have knowledge of any Default unless and until notice thereof is given to the Agent or Collateral Agent by the Parent
or a Purchaser, and neither the Agent nor the Collateral Agent shall be responsible for or have any duty to ascertain or inquire into (v) any statement, warranty or representation made in or in connection with this Agreement or any other
Purchase Document, (w) the contents of any certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (x) the performance or observance of any of the covenants, agreements or other terms
or conditions set forth herein or therein, (y) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Purchase Document or any other agreement, instrument or document, or (z) the satisfaction of any
condition set forth herein or therein, other than to confirm receipt of items expressly required to be delivered to the Agent or the Collateral Agent. In the event that the Agent or the Collateral Agent receives such a notice, such agent shall give
prompt notice thereof to the other Purchasers and the Parent (if received from a Purchaser) or to the Purchasers (if received from the Parent). 
  
 Section 8.06 Reliance by Agents. The Agent and the Collateral Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Agent and the Collateral Agent also may rely upon any
statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Agent and the Collateral Agent may consult with legal counsel (who may be counsel for a
Purchaser, the Parent or any Subsidiary), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts.

  

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 Section 8.07 Appointment of Sub-Agents. The Agent and the Collateral Agent may perform any
and all their respective duties and exercise its rights and powers by or through any one or more sub-agents appointed by the applicable Agent or the Collateral Agent, as applicable. The Agent, the Collateral Agent and any such sub-agents may perform
any and all its duties and exercise its rights and powers through their respective Affiliates. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agents and to the Affiliates of the Agent and the Collateral Agent and
shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as the Agent and the Collateral Agent. 
  
 Section 8.08 Resignation of Agents. The Agent and the Collateral Agent may resign at any time by notifying the
Purchasers and the Parent. Upon any such resignation, the Required Holders shall have the right, in consultation with the Parent, to appoint a successor. If no successor shall have been so appointed by the Required Holders and shall have accepted
such appointment within 30 days after the retiring the agent gives notice of its resignation, then the retiring agent may, upon not less than ten days’ notice, on behalf of the Purchasers, appoint a successor Agent or Collateral Agent, as the
case may be, or confer all the rights of the agent on the Required Holders. Upon the acceptance of its appointment as the Agent or Collateral Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights,
powers, privileges and duties of the retiring (or retired) agent and the retiring agent shall be discharged from its duties and obligations hereunder. The fees payable by the Parent to a successor Agent or Collateral Agent shall be the same as those
payable to its predecessor unless otherwise agreed between the Parent and such successor. After the Agent’s or Collateral Agent’s resignation(s) hereunder, the provisions of this Section shall continue in effect for its benefit in respect
of any actions taken or omitted to be taken by it while it was acting as the Agent or Collateral Agent. 
  
 Section 8.09 Purchaser Non-Reliance. Independently and without reliance upon the Agent or the Collateral Agent, each Purchaser, to the extent
it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of the Parent and its Subsidiaries in connection with the issuance of the Notes and the taking or not taking
of any action in connection herewith and (ii) its own appraisal of the creditworthiness of the Parent and its Subsidiaries and, except as expressly provided in this Agreement, neither the Agent nor the Collateral Agent shall have any duty or
responsibility, either initially or on continuing basis, to provide any Purchaser with any credit or other information with respect thereto, whether coming into its possession before the issuance of the Notes or at any time or times thereafter.
Neither the Agent nor the Collateral Agent shall be responsible to any Purchaser for any recitals, statements, information, representations or warranties herein or in any document, certificate or other writing delivered in connection herewith or for
the execution, effectiveness, genuineness, validity, enforceability, perfection, collectibility, priority or sufficiency of this Agreement or any other Purchase Document or the financial condition of the Parent or any Subsidiary or be required to
make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement or any other Purchase Document, or the financial condition of the Parent or any subsidiary or the existence or possible
existence of any Default or Event of Default. 
  

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 Section 8.10 Indemnification. To the extent the Agent or Collateral Agent is not reimbursed
and indemnified by the Issuers or other Obligors, the Purchasers shall reimburse and indemnify the Agent and the Collateral Agent in proportion to their respective “percentage” as used in determining the Required Holders for and against
any and all liabilities, obligations, losses, damages, penalties, claims, actions, judgments, costs, expenses or disbursements of whatsoever kind or nature (including fees and disbursements of any counsel or financial advisor engaged by such Agent
and/or the Collateral Agent) which may be imposed on, asserted against or incurred by the Agent or the Collateral Agent in performing its duties hereunder or under any other Purchase Document or in any way relating to or arising out of this
Agreement or any other Purchase Document; provided, however, that no Purchaser shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from such agent’s gross negligence or willful misconduct. If the indemnity furnished to the Agent or Collateral Agent by any Purchaser for any purpose shall, in the opinion of such agent be insufficient or become impaired, such agent
may call for additional indemnity from such Purchaser (but not any other Purchaser) and cease, or not commence, to do the acts indemnified against until such additional indemnity is furnished. The agreements in this Section 8.10 shall
survive the payment of all Obligations. 
  
 Section 8.11
Holders. The Agent and the Collateral Agent may deem and treat the payee of any Note as the owner thereof for all purposes hereof unless and until a written notice of the assignment, transfer or endorsement thereof. Any request, authority or
consent of any Person who, at the time of making such request or giving such authority or consent, is the holder of any Note shall be conclusive and binding on any subsequent holder, transferee, assignee or endorsee, as the case may be, of such Note
or of any Note or Notes issued in exchange therefor. 
  
 Section 8.12 Action by Agents. The Agent and the Collateral Agent may take any action on behalf of the Required Holders that has been approved by the Required Holders and any action that has otherwise been specified herein or in
any of the other Purchase Documents (other than the Warrant Documents) and the Agent may take any action on behalf of the Required Warrantholders that has been approved by the Required Warrantholders, as applicable. For the avoidance of doubt, but
subject to Section 10.01, the Agent and the Collateral Agent may, with the prior consent of the Required Holders (but not otherwise) consent to any amendment, restatement, supplement, waiver or other modification under any of the
Purchase Documents, including without limitation the Intercreditor and Subordination Agreements. 
  
 ARTICLE IX. CERTAIN PAYMENTS 
  
 Section 9.01 Pro Rata Treatment. 
  
 (a) Except as otherwise provided herein, each payment of principal and interest on the Notes shall be made or shared among the Purchasers pro rata according to the respective unpaid principal amounts of the Notes held
by such Purchasers. 
  

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 (b) The Purchasers hereby agree among themselves that if any Purchaser shall obtain any payment (whether
voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of the Notes held by it, in excess of its ratable share of payments on account of such Notes obtained by all Purchasers entitled to such payments, such
Purchaser shall promptly (i) turn the same (in kind) over to the other Purchasers to the extent necessary so that each Purchaser has received such payments in accordance with Section 9.01(a) or (ii) purchase, without recourse
or warranty, from the other Purchasers such participation in the Notes, as the case may be, as shall be necessary to cause such purchasing Purchaser to share the excess payment ratably with each of them; provided, however, that if all or any portion
of such excess payment is thereafter recovered from such purchasing party, such purchase shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefore shall be returned to such purchasing
party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment. The Issuer agrees that any Purchaser so purchasing a participation from another Purchaser
pursuant to this Section 9.02(b) may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of setoff) with respect to such participation as fully as if such Purchaser were the direct creditor of
the Issuer in the amount of such participation. 
  
 Section 9.02 Certain Provisions Regarding Increased Costs. Notwithstanding any other provision of this Agreement, if after the date of this Agreement any change in Applicable Law or in the interpretation or administration
thereof by any Governmental Authority charged with the interpretation or administration thereof (whether or not having the force of law) shall change the basis of taxation of payments to any Purchaser of the principal of or interest on any Note or
any fees, expenses or indemnities payable hereunder (other than changes in respect of taxes imposed on the overall net income of such Purchaser by the United States or the jurisdiction in which such holder has its principal office or by any
political subdivision or taxing authority therein), or shall impose, modify or deem applicable any reserve, special deposit or similar requirements against assets of, deposits with or for the account of or credit extended by any Purchaser or shall
impose on such Purchaser or the London interbank market any other condition affecting this Agreement or Notes purchased by such Purchaser and the result of any of the foregoing shall be to increase the cost to such Purchaser of making or maintaining
any Note or to reduce the amount of any payment received or receivable by such Purchaser hereunder or under any of the Notes (whether of principal, interest, or otherwise), then the Issuer agrees to pay to such Purchaser in accordance with
Section 9.02(c) such additional amount or amounts as may be required to compensate such Purchaser for such additional costs incurred or reduction suffered. 
  
 (b) If any Purchaser shall have determined that the adoption after the date hereof of any law, rule, regulation, agreement
or guideline regarding capital adequacy, or any amendment or modification after the date hereof to or of any such law, rule, regulation, agreement or guideline (whether such law, rule, regulation, agreement or guideline had been originally adopted
before or after the date hereof) or any change after the date hereof in the interpretation or administration of any such law, rule, regulation, agreement or guideline by any Governmental Authority charged with the interpretation or administration
thereof, or compliance by such Purchaser with any request or directive regarding capital adequacy (whether or not having the force of law) of any Governmental Authority has or would have the effect of reducing the rate of return on such
Purchaser’s capital as a consequence of the Notes purchased pursuant 

  

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hereto to a level below that which such Purchaser could have achieved but for such applicability, adoption, change or compliance (taking into consideration
such Purchaser’s policies with respect to capital adequacy), then from time to time the Issuer agrees to pay to such Purchaser such additional amount or amounts as may be required to compensate such holder for any such reduction suffered.

  
 (c) A certificate of any Purchaser setting forth in reasonable
detail the amount or amounts necessary to compensate such Purchaser as specified in subsection (a) or (b) of this Section 9.02 shall be delivered to the Issuer and shall be conclusive absent manifest error. The Issuer
agrees to pay such Purchaser the amount shown as due on any such certificate within five Business Days after its receipt of the same. 
  
 (d) Failure or delay on the part of any Purchaser to demand compensation for any increased costs or reduction in amounts received or receivable or
reduction in return on capital shall not constitute a waiver of such Purchaser’s right to demand such compensation with respect to such period or any other period. The protection of this clause (d) shall be available to any such Purchaser
regardless of any possible contention of the invalidity or inapplicability of the law, rule, regulation, agreement, guideline or other change or condition that shall have occurred or been imposed. 
  
 (e) The provisions of this Section 9.02 shall remain operative
and in full force and effect regardless of the occurrence of the expiration of the term of this Agreement, the consummation of the transactions contemplated hereby, the repayment of any of the Notes, the invalidity or unenforceability of any term or
provision of this Agreement, any Note or any other Note Document, or any investigation made by or on behalf of any Purchaser. 
  
 Section 9.03 Purchaser Expenses. If any Purchaser incurs costs or expenses of the type specified or similar to those described in
Section 9.02 or is funding any portion of its Notes through a credit agreement, line of credit or other loan arrangement (“Funding Source Agreement”) which contains provisions similar to those set forth in
Section 9.02 and such Purchaser is required by the terms of such Funding Source Agreement to pay to one or more lenders under such Funding Source Agreement increased amounts similar to those payable under Section 9.02, then
the Issuer shall promptly pay to such Purchaser, such additional amount or amounts as may be necessary to compensate such Purchaser for the increased amounts payable under such Funding Source Agreement. 
  
 ARTICLE X. MISCELLANEOUS 
  
 Section 10.01 Amendments and Waivers, Etc. 
  
 (a) Requirements. This Agreement and the Notes may be amended, and the
observance of any term hereof or of the Notes may be waived (either retroactively or prospectively), with (and only with) the written consent of the Issuer and the Required Holders (or the Agent on behalf of the Required Holders consenting), except
that no such amendment or waiver may, (A) without the written consent of each Purchaser affected thereby, (i) subject to the provisions hereof relating to acceleration or rescission, extend the time of any payment of principal of, reduce
the principal amount of, the rate on, or extend the time of payment or method 

  

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of computation of interest or any fee on, the Notes, (ii) reduce the percentage of the principal amount of the Notes the holders of which are required
to consent to any such amendment or waiver, (iii) release all or substantially all of the Collateral, (iv) modify or amend the indemnities set forth in Section 10.17 in any manner materially adverse to any Purchaser,
(v) amend Section 8.12 or Article IX in any manner materially adverse to any Purchaser, (vi) modify Section 2.08, if such modification would alter the pro rata treatment of payments required thereby,
(vii) amend this Section 10.01 or impose any obligation on any Purchaser or make any change that adversely effects the rights of any Purchaser disproportionately with the rights of any other Purchaser or (viii) amend
Section 2.07 and (B) without the prior written consent at least 66 2/3rd % of Purchasers,
(i) release any Obligor from its Obligations or limit its liability with regard thereto (except in connection with a Permitted Reorganization) or as permitted pursuant to Section 7.08, (ii) further restrict the persons included
under the definition of “Eligible Assignee” or amend Section 2.11 in any manner that would further restrict transfers of the Notes pursuant thereto or (iii) amend, restate, supplement, waive or otherwise modify the Third
Lien Intercreditor and Subordination Agreement in a manner that would adversely effect the rights of any Purchaser disproportionately with the rights of any other Purchaser; provided, however, that in the case of (A)(vii) and (B)(iii) above,
the prior written consent of each Purchaser disproportionately effected shall also be required. Notwithstanding the foregoing, the Warrant Documents may only be amended by the terms of such documents, respectively, but giving effect to the
provisions of Article VIII hereof. Notwithstanding the foregoing, neither the consent of any Agent nor the consent of any Purchaser shall be required to effectuate any amendments, modifications, waivers or releases required by the terms of
Section 2.9 of the Third Lien Intercreditor and Subordination Agreement. 
  
 (b) Binding Effect, Etc. Any amendment or waiver consented to as provided in this Article X applies equally to all Purchasers and the Agent and is binding upon them and upon each future Purchaser and the
Agent (including Transferees) and upon the Issuer without regard to whether any Note has been marked to indicate such amendment or waiver. No such amendment or waiver shall 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 Issuer and any Purchaser or the Agent nor any delay in exercising any rights under this Agreement, under any Note or under any other
Purchase Document shall operate as a waiver of any rights of any Purchaser or the Agent. As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to time be amended or supplemented.

  
 (c) Notes held by the Issuer, Etc. Solely for the
purpose of determining whether the holders of the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement, the Notes or any other
Purchase Document, or have directed the taking of any action provided in this Agreement, in the Notes or in any other Purchase Document to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of
Notes then outstanding, Notes directly or indirectly owned by the Issuer or any of its Affiliates (other than WCAS or any Person Affiliated with WCAS that does not have an ownership interest in the Issuer) shall be deemed not to be outstanding.

  

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 (d) Replacement of Purchaser. The Issuer may replace any Purchaser that becomes a Non-Consenting
Purchaser (as defined below in this Section 10.01(d)), upon ten Business Days’ prior written notice to the Agent and such Non-Consenting Purchaser, and such Non-Consenting Purchaser shall be obligated to transfer and assign pursuant
to Section 2.11 all of its rights and obligations under this Agreement to a Replacement Purchaser for a purchase price equal to the outstanding principal amount of the Non-Consenting Purchaser’s principal debt and such
Non-Consenting Purchaser’s ratable share of all accrued but unpaid accrued interest and fees and other amounts payable hereunder, provided that (i) neither the Agent nor any Purchaser shall have any obligation to the Issuer to find
a Replacement Purchaser and (ii) in no event shall a replaced Non-Consenting Purchaser be required to pay or surrender to such Replacement Purchaser any of the fees paid to such replaced Non-Consenting Purchaser prior to the effectiveness of
such assignment. In the case of a Replacement Purchaser to which the Issuer becomes obligated to pay additional amounts prior to such Non-Consenting Purchaser being replaced, the payment of such additional amounts shall be a condition to the
replacement of such Purchaser. In the event that (i) the Issuer or the Agent has requested the Purchasers to consent to a departure or waiver of any provisions of the Note Purchase Documents or to agree to any amendment thereto, (ii) the
consent, waiver or amendment in question requires the agreement of all Purchasers or all affected Purchasers in accordance with the terms of this Section 10.01 and (iii) at least 66 2/3rd % of Purchasers have agreed to such consent, waiver or amendment, then any Purchaser who does not agree to such consent, waiver or amendment shall be
deemed a “Non-Consenting Purchaser”. 
  
 Section 10.02 Notices, Etc. 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), (c) by a recognized overnight delivery service (with charges prepaid), or (d) in the case of periodic notices
to the Purchasers as a group, by email (so long as the Agent receives a copy of such notice so sent via email and by one of the other foregoing notice methods). Any such notice must be sent: 
  
 (a) if to a Purchaser or its nominee, to such Purchaser or nominee at the
address specified for such communications in Schedule I, or at such other address as a Purchaser (including any Transferee) or a nominee shall have specified to the Issuer and the Agent in writing, 
  
 (b) if to the Agent, to Tennenbaum Capital Partners, LLC, 2951 28th Street,
Suite 1000, Santa Monica, California 90405, Attention: General Counsel; or 
  
 (c) if to the Issuer, to the attention of Chief Financial Officer, 7037 Old Madison Pike, Suite 400, Huntsville, AL 35806, or at such other address as the Issuer shall have specified to the Purchasers in writing.

  
 (d) Notices under this Section 10.02 shall be
deemed effective upon the earlier of receipt thereof or 3 days from the date on which such notice was sent. 
  

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 Section 10.03 No Waiver; Remedies. No failure on the part of any Purchaser or any Agent to
exercise, and no delay in exercising, any right hereunder or under any Note shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
  
 Section 10.04 Costs and Expenses; Survival. 
  
 (a) The Issuer agrees to pay promptly (a) all the actual and documented costs and expenses of negotiation, preparation and execution of the Purchase
Documents and any consents, amendments, waivers or other modifications thereto (whether or not any such amendment, waiver or consents become effective); (b) all the costs of furnishing all opinions by counsel for the Obligors (including any
opinions requested by the Collateral Agent, the Agent or the Purchasers as to any legal matters arising hereunder) and of any Obligor’s performance of and compliance with all agreements and conditions on its part to be performed or complied
with under this Agreement and the other Purchase Documents including with respect to confirming compliance with environmental, insurance and solvency requirements; (c) the reasonable and documented fees, expenses and disbursements of counsel to
the lead Purchaser and the Agent (including allocated costs of internal counsel) in connection with the negotiation, preparation, execution and administration of the Purchase Documents and any consents, amendments, waivers or other modifications
thereto (whether or not any such amendment, waiver or consents become effective) and any other documents or matters requested by any Obligor; (d) all the actual costs and reasonable and documented expenses of creating and perfecting Liens in
favor of the Collateral Agent on behalf of the Purchasers pursuant to any Collateral Document, including filing and recording fees, expenses and taxes, stamp or documentary taxes, search fees, title insurance premiums, and reasonable fees, expenses
and disbursements of counsel to the Collateral Agent and of counsel providing any opinions that the Collateral Agent or the Purchasers may request in respect of the Collateral Documents or the Liens created pursuant thereto; (e) all the actual
costs and reasonable and documented expenses (including the reasonable fees, expenses and disbursements of any auditors, accountants or appraisers and any environmental or other consultants, advisors and agents employed or retained by the Collateral
Agent or the Purchasers or any of their counsel) of obtaining and reviewing any environmental audits or reports provided hereunder; (f) the costs incurred by the Collateral Agent in connection with the custody or preservation of any of the
Collateral; (g) all costs and documented expenses, including reasonable and documented attorneys’ fees (including allocated costs of internal counsel) and costs of settlement, incurred by the Collateral Agent and the Purchasers in
enforcing any Obligations of or in collecting any payments due from any Obligor hereunder or under the other Purchase Documents (including in connection with the sale of, collection from, or other realization upon any of the Collateral or the
enforcement of the Guaranties) or in connection with any refinancing or restructuring of the credit arrangements provided under this Agreement in the nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings; and
(h) all costs and expenses incurred by the Purchasers in obtaining periodic appraisals and market valuations of the Notes from time to time as required or otherwise desirable (as determined by the applicable Purchaser at its sole discretion)
pursuant to any Funding Source Agreement or other Contractual Obligation of a Purchaser. The Issuer shall pay, and shall save each Purchaser and the Agent harmless from, all claims in respect of reasonable 

  

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and documented fees, costs or expenses if any, of brokers and finders (other than those retained by a Purchaser or the Agent). 
  
 (b) The obligations of the Issuer under this Section 10.04 shall
survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement, the Notes or any other Purchase Document, and the termination of this Agreement. 
  
 Section 10.05 Confidentiality. “Confidential
Information” means information, written or oral, delivered to a Purchaser or the Agent by or on behalf of any Obligor in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in nature
or was marked, labeled or otherwise adequately identified, including without limitation identified as such orally by a Senior Officer, when received by a Purchaser or the Agent as being confidential information of any Obligor, provided that
such term does not include information that (a) was publicly known or otherwise known to such Purchaser or the Agent prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission by such Purchaser
or the Agent or any person acting on its behalf, (c) otherwise becomes known to such Purchaser or the Agent other than through disclosure by any Obligor or their employees, agents or affiliates or (d) constitutes financial statements
delivered to such Purchaser or the Agent hereunder that are otherwise publicly available. Each Purchaser and the Agent shall maintain the confidentiality of Confidential Information, provided that such Purchaser and the Agent may deliver or disclose
Confidential Information to (i) its directors, officers, employees, agents, attorneys and affiliates (to the extent such disclosure is reasonably required for the administration of the investment represented by such Purchaser’s Notes),
(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 10.05, (iii) any other Purchaser or the Agent,
(iv) any Person to which such Purchaser sell or offer to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions
of this Section 10.05), (v) any Person from which such Purchaser offers to purchase any security of the Issuer (if such Person has agreed in writing prior to its receipt of such Confidential Information to be bound by the provisions
of this Section 10.05), (vi) as required by any federal or state regulatory authority having jurisdiction over such Purchaser or the Agent, (vii) the National Association of Insurance Commissioners or any similar organization,
or any nationally recognized rating agency that requires access to information about such Purchaser’s investment portfolio or (viii) any other Person to which such delivery or disclosure may be necessary or appropriate (A) to effect
compliance with any law, rule, regulation or order applicable to such Purchaser, (B) in response to any subpoena or other legal process, (C) in connection with any litigation to which such Purchaser or the Agent is a party or (D) if
an Event of Default has occurred and is continuing, to the extent such Purchaser or the Agent may reasonably determine such delivery and disclosure to be necessary or appropriate in the enforcement or for the protection of the rights and remedies
under the Notes, this Agreement or any other Purchase Document. Notwithstanding anything to the contrary set forth herein, in any other Purchase Document or in any other written or oral understanding or agreement to which the parties hereto are
parties or by which they are bound, the parties acknowledge and agree that (i) any obligations of confidentiality contained herein and therein do not apply and have not applied from the commencement of discussions between the parties to the tax
treatment and tax structure of the Notes (and any related transactions or arrangements), and (ii) each party (and each of its employees, representatives, or other agents) 

  

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may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Notes and all materials of any kind
(including opinions or other tax analyses) that are provided to such party relating to such tax treatment and tax structure, all within the meaning of U.S. Treasury Regulations Section 1.6011. Nothing contained in this provision shall prohibit
any Purchaser from disclosing its own participation in the Transactions or other information (except Confidential Information) about the Transactions after the Closing as may be used in good faith by such Purchaser for its marketing purposes in a
manner consistent with customary industry practice. As to any Purchaser and to TCP, this Section 10.05 supersedes in its entirety that certain Confidentiality Agreement by and between TCP and the Parent dated as of March 4, 2005.

  
 Section 10.06 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 10.07 Construction. Each covenant contained herein shall be construed (absent express provision to the
contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein
refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person. 
  
 Section 10.08 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 10.09 Governing Law. This
Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by, the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the
laws of a jurisdiction other than such State. 
  
 Section 10.10 Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE
OTHER PURCHASE DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS FINANCING TRANSACTION OR THE RELATIONSHIP THAT IS BEING ESTABLISHED HEREUNDER OR THEREUNDER. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF
ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO
ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER 

  

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INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH SHALL CONTINUE TO RELY ON THIS
WAIVER IN THEIR RELATED FUTURE DEALINGS UNDER THE PURCHASE DOCUMENTS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS
FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.10 AND EXECUTED BY EACH OF THE
PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE OTHER PURCHASE DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE NOTES SOLD HEREUNDER.
IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
  
 Section 10.11 Usury Savings Clause. Notwithstanding any other provision herein, the aggregate interest rate charged with respect to any of the
Obligations, including all charges or fees in connection therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful Rate. If the rate of interest (determined without regard to the preceding sentence) under
the Notes at any time exceeds the Highest Lawful Rate, the outstanding amount of the Notes purchased or deemed purchased hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due hereunder equals the amount of
interest which would have been due hereunder if the stated rates of interest set forth in the Note had at all times been in effect. In addition, if and when the Notes purchased or deemed purchased hereunder are repaid in full the total interest due
hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of interest set forth in the Notes had at all times been in effect, then to the extent
permitted by law, the Parent shall pay to the Purchasers an amount equal to the difference between the amount of interest paid and the amount of interest which would have been paid if the Highest Lawful Rate had at all times been in effect.
Notwithstanding the foregoing, it is the intention of the Purchasers and the Parent to conform strictly to any applicable usury laws. Accordingly, if any Purchaser contracts for, charges, or receives any consideration which constitutes interest in
excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such Purchaser’s option be applied to the outstanding amount of the Notes purchased or deemed purchased hereunder or be
refunded to the Parent. 
  
 Section 10.12 Right of
Set-off. Upon the occurrence and during the continuance of any Event of Default, each Purchaser and its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by any such Purchaser or its Affiliates to or for the credit or the account of any Obligor against any and all of the
Obligations now or hereafter existing, whether or not any Purchaser shall have made any demand under this Agreement or the other Purchase Documents and although such Obligations may be unmatured. The rights of the Purchasers and their 

  

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Affiliates under this Section 10.12 are in addition to the other rights and remedies (including other rights of set-off) which such Persons may
have. 
  
 Section 10.13 Marshalling; Payments Set
Aside. No Purchaser shall be under any obligation to marshal any assets in favor of any Obligor or any other Person or against or in payment of any or all of the Obligations. To the extent that any Obligor makes a payment or payments to the
Agent, the Collateral Agent or any Purchaser or the Agent, Collateral Agent or any Purchaser enforces any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of such enforcement or setoff or any part
thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or federal law, common law or any equitable
cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in full force and effect as if such
payment or payments had not been made or such enforcement or setoff had not occurred. 
  
 Section 10.14 Limitation of Liability. THE OBLIGORS AGREE THAT NO INDEMNIFIED PERSON SHALL HAVE ANY LIABILITY (WHETHER DIRECT OR INDIRECT, IN CONTRACT, TORT OR OTHERWISE) TO ANY PURCHASER OR ANY OF THEIR
RESPECTIVE SUBSIDIARIES, EQUITY HOLDERS OR CREDITORS FOR OR IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY AND IN THE OTHER PURCHASE DOCUMENTS, EXCEPT TO THE EXTENT SUCH LIABILITY IS FOUND IN A FINAL JUDGMENT BY A COURT OF COMPETENT
JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH INDEMNIFIED PERSON’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. IN NO EVENT, HOWEVER, SHALL ANY INDEMNIFIED PERSON BE LIABLE ON ANY THEORY OF LIABILITY FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR
PUNITIVE DAMAGES AND EACH OF THE OBLIGORS HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE UPON ANY SUCH CLAIM FOR ANY SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR. 
  
 Section 10.15 Submission to Jurisdiction; Waivers. Each of the
Obligors hereby irrevocably and unconditionally: 
  
 (a) submits
for itself and its Property in any legal action or proceeding relating to this Agreement and the other Purchase Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the co-exclusive general
jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof or the United States District Court for the Central District of California
and of any California State Court sitting in Los Angeles, California; 
  
 (b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was
brought in an inconvenient court and agrees not to plead or claim the same; 
  

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 (c) agrees that service of process in any such action or proceeding may be effected by mailing a copy
thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address set forth in Section 10.02 or at such other address of which the Purchasers and the Agent have been notified
pursuant thereto; and 
  
 (d) agrees that nothing herein shall
affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction. 
  
 Section 10.16 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 Transferee) whether so expressed or not; provided, however, that neither the Parent nor its Subsidiaries may assign its
rights or obligations under the Purchase Documents. 
  
 Section 10.17 Indemnification. 
  
 (a) The
Issuer and the other Obligors shall indemnify and hold harmless each Purchaser, the Collateral Agent, the Agent, each person who controls a Purchaser within the meaning of the Securities Act or the Exchange Act, in each case, as amended, and each of
their respective directors, officers, employees, principals, members, agents, advisors and partners (any and all of whom are referred to as the “Indemnified Party”) from and against any and all losses, claims, damages, and
liabilities, whether joint or several (including all legal fees or other expenses reasonably incurred by any Indemnified Party in connection with the preparation for or defense of any pending or threatened third party claim, action or proceeding,
whether or not resulting in any liability), to which such Indemnified Party may become subject, under any Applicable Law or otherwise, caused by or arising out of, or allegedly caused by or arising out of, (i) this Agreement, any other Purchase
Document, any related agreement or any transaction contemplated hereby or thereby (including, without limitation, any failure to purchase the Securities other than by reason of a breach of this Agreement by the Indemnified Party), (ii) any
enforcement of any of the Purchase Documents (including any sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guaranties), or (iii) any Environmental Action relating to or arising from, directly
or indirectly, any past or present activity, operation, land ownership, or practice of the Parent or any of its Subsidiaries. 
  
 (b) Promptly after receipt by an Indemnified Party of notice of any claim, action or proceeding with respect to which an Indemnified Party is entitled to
indemnity hereunder, such Indemnified Party shall notify the Parent of such claim or the commencement of such action or proceeding, provided that the failure of an Indemnified Party to give notice as provided herein shall not relieve the Issuer or
the other Obligors of their obligations under this Section 10.17 with respect to such Indemnified Party, except to the extent that such Obligor is actually prejudiced by such failure. The Parent shall assume the defense of such claim,
action or proceeding and shall employ counsel satisfactory to the Indemnified Party and shall pay the fees and expenses of such counsel. Notwithstanding the preceding sentence, the Indemnified Party shall be entitled, at the expense of the Issuer
and the other Obligors, to employ counsel separate from counsel for the Parent and for any other party in such action if the Indemnified Party reasonably determines upon advice of counsel that a conflict of interest or other reasonable basis exists
which makes representation by counsel chosen by the Parent not advisable. NO 

  

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OBLIGOR SHALL BE REQUIRED TO INDEMNIFY ANY INDEMNIFIED PARTY FOR ANY LOSSES, CLAIMS, DAMAGES AND LIABILITIES TO THE EXTENT ANY SUCH LOSSES, CLAIMS, DAMAGES
OR LIABILITIES ARE A RESULT OF SUCH INDEMNIFIED PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FOUND IN A FINAL, NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION. 
  
 (c) THE INDEMNIFICATION PROVISIONS IN THIS SECTION 10.17 SHALL BE ENFORCEABLE REGARDLESS OF WHETHER THE LIABILITY IS
BASED UPON PAST, PRESENT OR FUTURE ACTS, CLAIMS OR LAWS (INCLUDING ANY PAST, PRESENT OR FUTURE BULK SALES LAW, ENVIRONMENTAL LAW, FRAUDULENT TRANSFER ACT, OCCUPATIONAL SAFETY AND HEALTH LAW OR PRODUCTS LIABILITY, SECURITIES OR OTHER LAW) AND
REGARDLESS OF WHETHER ANY PERSON (INCLUDING THE PERSON FROM WHOM INDEMNIFICATION IS SOUGHT) ALLEGES OR PROVES THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION OR THE SOLE OR CONCURRENT STRICT
LIABILITY IMPOSED UPON THE PERSON SEEKING INDEMNIFICATION. 
  
 (d)
To the extent that the undertakings to defend, indemnify, pay and hold harmless set forth in this Section 10.17 may be unenforceable in whole or in part because they are violative of any Applicable Law or public policy, the Issuer and
the other Obligors shall contribute the maximum portion that it is permitted to pay and satisfy under Applicable Law to the payment and satisfaction of all indemnified liabilities incurred by Indemnified Parties or any of them. 
  
 Section 10.18 Survival of Representations and Warranties; Entire
Agreement. All representations and warranties contained herein and in the other Note Documents shall survive the execution and delivery of this Agreement, the Notes and the other Note Documents, the purchase or transfer by a Purchaser of any
Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent Purchaser (including any Transferee), regardless of any investigation made at any time by or on behalf of any Purchaser (including any
Transferee). All statements contained in any certificate or other instrument delivered by or on behalf of the Company pursuant to this Agreement or any other Note Document shall be deemed representations and warranties of the Company under this
Agreement. Subject to the preceding sentence, this Agreement, the Notes and the other Note Documents embody the entire agreement and understanding between the Purchasers and the Company and supersede all prior agreements and understandings relating
to the subject matter hereof. 
  
 Section 10.19
Authorization for Intercreditor and Subordination Agreements. Each of the Purchasers party hereto authorizes and directs the Agents to execute on their behalf the Intercreditor and Subordination Agreements and agrees to be bound by the terms
thereof. 
  
 [signature pages follow] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written. 
  

					
	 TENNENBAUM CAPITAL PARTNERS, LLC,
as Agent

		
	 	 	By: TENNENBAUM & CO., LLC
	 	 	 Its: Managing Member

	
	 TCP AGENCY SERVICES, LLC,
as Collateral Agent

		
	 	 	 By: TENNENBAUM CAPITAL PARTNERS, LLC

	 	 	 Its: Managing Member

		
	 	 	 By: TENNENBAUM & CO., LLC

	 	 	 Its: Managing Member

	
	 SPECIAL VALUE BOND FUND II, LLC,
as Purchaser

		
	 	 	 By: SVIM/MSM II, LLC

	 	 	 Its: Managing Member

		
	 	 	 By: TENNENBAUM & CO., LLC

	 	 	 Its: Managing Member

	
	 SPECIAL VALUE ABSOLUTE RETURN FUND, LLC,
as Purchaser

		
	 	 	 By: SVAR/MM, LLC

	 	 	 Its: Managing Member

		
	 	 	 By: TENNENBAUM CAPITAL PARTNERS, LLC

	 	 	 Its: Managing Member

		
	 	 	 By: TENNENBAUM & CO., LLC

	 	 	 Its: Managing Member

	
	 Each of the above by:

	
	                 /s/ Howard M. Levkowitz

	 	 	 Name:
	 	 Howard M. Levkowitz

	 	 	 Title:
	 	 Managing Partner













			
	 MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY

	 
	By:	 	 Babson Capital Management LLC
 as Investment
Adviser

		
	By:	 	/s/ Michael L. Klofas
	Name:  	 	Michael L. Klofas
	Title:	 	Managing Director
	 	 	 
	
	 Address:
 Richard E. Spencer, II

Babson Capital Management LLC
 1500 Main Street, Suite 2200
 Springfield, MA 01115

	 
	MASSMUTUAL PARTICIPATION INVESTORS
	 
		
	By:	 	/s/ Michael L. Klofas
	Name:  	 	 Michael L. Klofas

	Title:	 	 Vice President

	 	 	 
	
	The foregoing is executed on behalf of MassMutual Participation Investors, organized under a Declaration of Trust, dated April 7, 1988, as amended from time to time. The obligations
of such Trust are not binding upon, nor shall resort be had to the property of, any of the Trustees, shareholders, officers, employees or agents of such Trust individually, but the Trust’s assets and property only shall be
bound.
	 
	
	 Address:
 Richard E. Spencer, II

Babson Capital Management LLC
 1500 Main Street, Suite 2200
 Springfield, MA 01115



  

 101 









			
	 MASSMUTUAL CORPORATE INVESTORS

	 
	By:	 	/s/ Michael L. Klofas
	Name:  	 	Michael L. Klofas
	Title:	 	Vice President
	 	 	 
	
	The foregoing is executed on behalf of MassMutual Corporate Investors, organized under a Declaration of Trust, dated April 7, 1988, as amended from time to time. The obligations of
such Trust are not binding upon, nor shall resort be had to the property of, any of the Trustees, shareholders, officers, employees or agents of such Trust individually, but the Trust’s assets and property only shall be bound.
	
	 Address:
 Richard E. Spencer, II

Babson Capital Management LLC
 1500 Main Street, Suite 2200
 Springfield, MA 01115

	 
	TOWER SQUARE CAPITAL PARTNERS, L.P.
	 
	By:	 	 Babson Capital Management LLC
 as Investment
Adviser

		
	By:	 	/s/ Michael L. Klofas
	Name:  	 	 Michael L. Klofas

	Title:	 	 Managing Director

	 	 	 
	 
	 Address:
 Richard E. Spencer, II

Babson Capital Management LLC
 1500 Main Street, Suite 2200
 Springfield, MA 01115



  

 102 









					
	 INTERSTATE FIBERNET INC., as Issuer

			
	 By:
	 	 	 	/s/ Richard E. Fish
	 	 	 Name:
	 	 Richard E. Fish

	 	 	 Title:
	 	 Chief Financial Officer

	
	 ITC^DELTACOM, INC., as Guarantor

			
	 By:
	 	 	 	/s/ Richard E. Fish
	 	 	 Name:
	 	 Richard E. Fish

	 	 	 Title:
	 	 Chief Financial Officer

	
	 ITC^DELTACOM COMMUNICATIONS, INC.,
as Guarantor

			
	 By:
	 	 	 	/s/ Richard E. Fish
	 	 	 Name:
	 	 Richard E. Fish

	 	 	 Title:
	 	 Chief Financial Officer

	
	 DELTACOM INFORMATION SYSTEMS, INC.,
as Guarantor

			
	 By:
	 	 	 	/s/ Richard E. Fish
	 	 	 Name:
	 	 Richard E. Fish

	 	 	 Title:
	 	 Chief Financial Officer













					
	 BTI TELECOM CORP., as Guarantor

			
	 By:
	 	 	 	/s/ Richard E. Fish
	 	 	 Name:
	 	 Richard E. Fish

	 	 	 Title:
	 	 Chief Financial Officer

	
	 BUSINESS TELECOM, INC., as Guarantor

			
	 By:
	 	 	 	/s/ Richard E. Fish
	 	 	 Name:
	 	 Richard E. Fish

	 	 	 Title:
	 	 Chief Financial Officer

	
	 BUSINESS TELECOM OF VIRGINIA, INC.,
as Guarantor

			
	 By:
	 	 	 	/s/ Richard E. Fish
	 	 	 Name:
	 	 Richard E. Fish

	 	 	 Title:
	 	 Chief Financial Officer













			
	
	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:	 	 Managing Member



  

 105 









			
	 Certain 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

	 	 	 Lawrence B. Sorrel

	 	 	 The Estate of Rudolph E. Rupert

	 	 	 D. Scott Mackesy

	 	 	 Sanjay Swani

	 	 	 Laura VanBuren

	 	 	 Sean Traynor

	 	 	 John Almeida

	 	 	 Eric J. Lee

	 	 	 Jonathan M. Rather

	 	 	 James R. Matthews

	 	 	 IRA f/b/o James R. Matthews

	 	 	 IRA f/b/o Jonathan M. Rather

	
	 Other trusts:

		
	 	 	 Mary R. Anderson TTEE of the Bruce K. Anderson 2004 Trust

	 	 	 The Bruce K. Anderson 2004 Irrevocable Trust

		
	 By:
	 	/s/ Mary Anderson
	 Name:
	 	 Mary Anderson

	 Title:
	 	 Trustee

		
	 	 	 Carol Welsh TTEE of the Patrick Welsh 2004 Irrevocable Trust

		
	 By:
	 	/s/ Carol Welsh
	 Name:
	 	 Carol Welsh

	 Title:
	 	 Trustee



  

 106