EXHIBIT 4.1



 Exhibit 4.1 
  
 ITC^DELTACOM, INC. 
  
 CERTIFICATE OF DESIGNATION OF THE POWERS, 
 PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL AND 
 OTHER SPECIAL RIGHTS OF 8% SERIES C CONVERTIBLE 
 REDEEMABLE PREFERRED STOCK AND QUALIFICATIONS, 
 LIMITATIONS AND RESTRICTIONS THEREOF 
  
 Pursuant
to Section 151 of the 
 General Corporation Law of the State of Delaware 
  
 ITC^DeltaCom, Inc. (the “Corporation”), a corporation organized and existing under the General Corporation
Law of the State of Delaware, does hereby certify that, pursuant to authority conferred upon the board of directors of the Corporation (the “Board of Directors”) by the Corporation’s Restated Certificate of Incorporation, and
pursuant to the provisions of Section 151 of the General Corporation Law of the State of Delaware, the Board of Directors is authorized to issue preferred stock of the Corporation in one or more series, and the Transaction Committee of the Board of
Directors has duly approved and adopted the following resolution on July 22, 2005: 
  
 RESOLVED, that, pursuant to the authority vested in the Board of Directors by the Restated Certificate of Incorporation of the
Corporation, and pursuant to Section 151 of the General Corporation Law of the State of Delaware, the Board of Directors hereby creates, authorizes and provides for the issuance of 8% Series C Convertible Redeemable Preferred Stock, par value $0.01
per share, with a liquidation preference of $1.00 per share, consisting of 28,000,000 shares and having the powers, preferences and relative, participating, optional and other special rights and the qualifications, limitations and restrictions
thereof that are set forth in the Restated Certificate of Incorporation and in this resolution as follows: 
  
 1. Designation 
  
 1.1
Designation; Liquidation Preference 
  
 There is hereby
created out of the authorized and unissued shares of preferred stock of the Corporation a series of preferred stock designated as the 8% Series C Convertible Redeemable Preferred Stock (the “Series C Preferred Stock”). The number of
shares constituting the Series C Preferred Stock shall be 28,000,000. The liquidation preference of the Series C Preferred Stock shall be $1.00 per share (the “Liquidation Preference”); provided that the Liquidation Preference shall
be subject to equitable adjustment if and whenever there shall occur a stock split, combination, recapitalization, reorganization or reclassification of, or other similar event affecting, the Series C Preferred Stock. 







 1.2 Capitalized Terms 
  
 Certain capitalized terms used in this Certificate of Designation have the meanings assigned to them in Section 8.

  
 2. Dividends 
  
 2.1 Payment of Preferred Dividends 
  
 (a) The Holders of shares of Series C Preferred Stock shall be entitled to
receive with respect to each share of Series C Preferred Stock, when, as and if declared by the Board of Directors, out of funds legally available for the payment of dividends, dividends (the “Preferred Dividends”) in an amount
equal to the greater of (x) dividends at the rate of 8% per annum (the “Annual Dividend Rate”) of the sum of the Liquidation Preference plus the amount of any Accumulated Dividends accrued with respect to such share and (y)
dividends (other than dividends in Common Stock payable in connection with a stock split, reclassification or subdivision of the Common Stock) that would have accrued with respect to such share of Series C Preferred Stock during the applicable
Dividend Period if the Holder of such share had converted such share into Common Stock immediately prior to the record date of any dividend declared on the Common Stock in such Dividend Period. If any dividend declared on the Common Stock and
referred to in clause (y) above is in a form other than cash, the value of such dividend for purposes of this Section 2.1(a) shall be determined in good faith by the Board of Directors, whose determination, in the absence of manifest error, but
subject to Section 2.1(g), shall be final and binding upon the Corporation and the Holders of the Series C Preferred Stock. Any Preferred Dividend referred to in clause (y) above shall be deemed to have accrued with respect to a share of Series C
Preferred Stock as of the last day of the applicable Dividend Period. Preferred Dividends with respect to a share of Series C Preferred Stock shall accrue and shall be cumulative whether or not declared from the date of issue of such share of Series
C Preferred Stock; provided that Preferred Dividends with respect to any share of Post-Record Date Series C Preferred Stock shall accrue and shall be cumulative whether or not declared from the first Dividend Payment Date following the date of issue
of such share of Post-Record Date Series C Preferred Stock. Preferred Dividends on the Series C Preferred Stock shall be payable quarterly in arrears on April 1, July 1, October 1 and January 1 of each year (unless, solely with respect to Preferred
Dividends payable in cash, such day is not a Business Day, in which event such Preferred Dividends shall be payable on the next succeeding Business Day) (each such date being a “Dividend Payment Date” and each such quarterly period
being a “Dividend Period”). Preferred Dividends declared by the Board of Directors which are paid in shares of Series C Preferred Stock shall be deemed paid as of April 1, July 1, October 1 or January 1, as the case may be, for all
purposes of this Certificate of Designation even if any such date is not a Business Day. Preferred Dividends payable on any Dividend Payment Date shall be payable to the Holders of shares of Series C Preferred Stock as they appear on the stock
register of the Corporation at the close of business on the corresponding Dividend Payment Record Date. As used herein, the term “Dividend Payment Record Date” means, with respect to the Preferred Dividends payable on April 1, July
1, 
  

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 October 1 and January 1, respectively, of each year, the preceding March 15, June 15, September 15 and December 15
(unless such day is not a Business Day, in which event such Dividend Payment Record Date shall be the next succeeding Business Day), or such other date, not more than 60 days or less than ten days preceding the Dividend Payment Date, as shall be
fixed as the record date by the Board of Directors. 
  
 (b) The
dividend rate for Preferred Dividends payable in the amount specified in and pursuant to clause (x) of Section 2.1(a) with respect to each full Dividend Period shall be computed by dividing the Annual Dividend Rate by four. The dividend rate for
such Preferred Dividends payable on the initial Dividend Payment Date after the Issue Date and with respect to any other period other than a full Dividend Period shall be computed on the basis of a 365-day year and the actual number of days elapsed
in the period with respect to which such Preferred Dividends are payable; provided that if the initial Dividend Period with respect to any share of Series C Preferred Stock which (i) is not a share of Post-Record Date Series C Preferred Stock and
(ii) is issued after the Issue Date is shorter than a full Dividend Period, the dividend rate for a Preferred Dividend payable on such share on the Dividend Payment Date for such initial Dividend Period shall be computed at a rate which shall result
in a cumulative dividend on such share for such initial Dividend Period equal to the amount which would have accrued on or been payable with respect to such share if such share been outstanding on the first day of such initial Dividend Period.
Except as otherwise provided in this Certificate of Designation, the Series C Preferred Stock shall not be entitled to any dividends, whether payable in cash, property or securities, in addition to the Preferred Dividends as provided in this Section
2.1. No interest or sum of money or other property or securities in lieu of interest shall be payable in respect of any accumulated and unpaid Preferred Dividends. 
  
 (c) Accumulated Dividends may be declared and paid on any date, without reference to any regular Dividend Payment Date or
Dividend Payment Record Date, to Holders of Series C Preferred Stock as they appear on the stock register of the Corporation at the close of business on the date fixed as the record date for such payment by the Board of Directors. 
  
 (d) Any Preferred Dividend payable in the amount specified in and pursuant to
clause (x) of Section 2.1(a) may be paid, in the sole discretion of the Corporation, (i) in cash, (ii) in shares of Series C Preferred Stock or (iii) in a combination of cash and shares of Series C Preferred Stock. Any Preferred Dividend payable in
the amount specified in and pursuant to clause (y) of Section 2.1(a) shall be payable in the same form as the dividend referred to in such clause (y) that has been declared on the Common Stock in the applicable Dividend Period. Each share of Series
C Preferred Stock issued in payment of a Preferred Dividend shall be valued, solely for purposes of determining the number of shares of Series C Preferred Stock to be issued as a Preferred Dividend, at the Liquidation Preference thereof and shall,
upon issuance, be duly and validly issued, fully paid and non-assessable, free of all Liens and not subject to preemptive rights. If any such Preferred Dividend would result in the issuance of a fractional share of Series C Preferred Stock, the
Corporation, in its sole discretion, may either pay such fractional share or round such fractional share up to the nearest whole share of Series C 
  

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 Preferred Stock. Except to the extent otherwise required by the NASDAQ Marketplace Rules (if applicable) or the rules,
regulations, interpretations and practices of the Transfer Agent or any securities exchange on which the Common Stock is traded, or by any other applicable law or regulation, (i) fractional shares of Series C Preferred Stock issued in payment of any
Preferred Dividend shall be rounded up to the nearest one-ten thousandth (.0001) of a share, and (ii) any Preferred Dividend payable in cash shall be rounded up to the nearest cent. 
  
 (e) Payment of a Preferred Dividend in shares of Series C Preferred Stock to a Holder of the Series C Preferred Stock shall
be made by delivering a certificate or certificates evidencing such shares, which shall be dated as of the applicable Dividend Payment Date, to such Holder after the applicable Dividend Payment Date at such Holder’s address as it shall appear
on the stock register of the Corporation at the close of business on the Dividend Payment Record Date for such Dividend Payment Date. 
  
 (f) All Preferred Dividends shall be paid pro rata to the Holders of the Series C Preferred Stock entitled thereto. 
  
 (g) The Corporation shall give prompt written notice to the Required Initial
Holders of the determination of the Board of Directors with respect to the value of any dividend declared on the Common Stock referred to in clause (y) of the first sentence of Section 2.1(a) that is in a form other than cash. If the Required
Initial Holders object to such determination (whether or not in manifest error) by the Board of Directors of the value of such dividend by giving the Corporation written notice of such objection within ten Business Days after their receipt of the
Corporation’s written notice of such determination, and such objection is not withdrawn, the Corporation shall retain, at the Corporation’s sole cost, an Independent Appraiser to determine the value of such dividend. The determination of
such Independent Appraiser with respect to the value of such dividend, or, if the Corporation is not required to retain an Independent Appraiser pursuant to this Section 2.1(g), but retains an Independent Appraiser pursuant to the Series A
Certificate of Designation or the Series B Certificate of Designation to determine the value of such dividend for purposes of the Series A Certificate of Designation or the Series B Certificate of Designation, as the case may be, the determination
of such other Independent Appraiser with respect to the value of such dividend, shall be final and binding upon the Corporation and the Holders of the Series C Preferred Stock. Any written notice required to be given by the Corporation or the
Required Initial Holders pursuant to this Section 2.1(g) shall be given in the manner, and with the effect, provided in Section 7.4(b). 
  
 2.2 Declaration of Dividends and Distributions 
  
 (a) So long as any shares of the Series C Preferred Stock are outstanding, (i) no dividends, except as provided in Section 2.2(d) and except as described
in the last sentence of this Section 2.2(a), shall be declared or paid or set apart for payment and no other distribution shall be declared or made upon any Parity Securities, nor (ii) shall any Parity Securities be redeemed, purchased or otherwise
acquired for any consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any Parity Securities) by 
  

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 the Corporation or any of its subsidiaries (except by conversion into or exchange for Parity Securities or Junior
Securities), unless (x) in the case of clause (i) above, all Accumulated Dividends on the outstanding Series C Preferred Stock have been or contemporaneously are declared and paid or declared and sufficient funds or shares of Series C Preferred
Stock for the payment thereof are set apart for such payment on or prior to the date of payment of such dividends or the making of such other distributions on such Parity Securities and (y) in the case of clause (ii) above, the Corporation shall
contemporaneously redeem, purchase or otherwise acquire for consideration a pro rata portion of the Series C Preferred Stock then outstanding, which pro rata portion shall be calculated based on the aggregate redemption, purchase or other
acquisition price which would be payable to the Holders of the Series C Preferred Stock and the holders of the class or series of Parity Securities being so redeemed, purchased or otherwise acquired to redeem the total number of shares of the Series
C Preferred Stock and of each such class or series of Parity Securities then outstanding. Any redemption of Series C Preferred Stock in accordance with the immediately preceding sentence shall be deemed to be a redemption at the option of the
Corporation and shall be subject to, and effected in accordance with, Sections 5.1 and 5.3. Notwithstanding the foregoing, if Accumulated Dividends are not paid in full or sufficient funds or shares of Series C Preferred Stock for the payment
thereof are not set aside, as aforesaid, the Corporation may declare and pay or set aside sufficient funds or (to the extent authorized in the instrument creating the applicable Parity Securities) Parity Securities for the payment of accrued and
unpaid dividends on Parity Securities for past dividend periods if and to the extent that, prior thereto or contemporaneously therewith, the Corporation shall declare and pay or set aside sufficient funds or shares of Series C Preferred Stock for
the payment of Accumulated Dividends on the outstanding Series C Preferred Stock ratably in proportion to the respective dollar amounts of all Accumulated Dividends then payable on the outstanding Series C Preferred Stock and all such accrued and
unpaid dividends then payable on such Parity Securities. 
  
 (b)
So long as any shares of the Series C Preferred Stock are outstanding, no dividends, except as provided in Section 2.2(d), shall be declared or paid or set apart for payment and no other distribution shall be declared or made upon Junior Securities,
nor shall any Junior Securities be redeemed, purchased or otherwise acquired (any such dividend, distribution, redemption, purchase or other acquisition being hereinafter referred to as a “Junior Securities Distribution”) for any
consideration (or any moneys be paid to or made available for a sinking fund for the redemption of any Junior Securities) by the Corporation or any of its subsidiaries (except by conversion into or exchange for Junior Securities), unless in each
case (i) all Accumulated Dividends on the outstanding Series C Preferred Stock and all accrued and unpaid dividends on any outstanding Parity Securities for all past dividend periods with respect to such Parity Securities shall have been paid or
sufficient funds or, as applicable, shares of Series C Preferred Stock or (to the extent authorized in the instrument creating the applicable Parity Securities) Parity Securities set aside for the payment thereof and (ii) sufficient funds or shares
of Series C Preferred Stock shall have been paid or set apart for the payment of Preferred Dividends for the current Dividend Period with respect to the Series C Preferred Stock and sufficient funds or (to the extent authorized in the instrument
creating the 
  

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 applicable Parity Securities) Parity Securities shall have been paid or set aside for the payment of any dividends for
the current dividend period with respect to such Parity Securities; provided that no Junior Securities other than Excluded Junior Securities shall be redeemed, purchased or otherwise acquired without the prior written consent of the Required Initial
Holders. 
  
 (c) No Preferred Dividends may be declared, made or
paid or funds set apart for the payment of Preferred Dividends upon any outstanding share of Series C Preferred Stock with respect to any Dividend Period unless all dividends which are accrued and payable with respect to preceding dividend periods
upon all outstanding Senior Securities shall have been declared and paid or sufficient funds for the payment thereof shall have been set apart for the payment of such dividends. 
  
 (d) Notwithstanding anything in this Section 2.2 or any other provision of this Certificate of Designation to the contrary,
the Corporation shall have the power to (i) declare and pay dividends or make distributions on Parity Securities which are payable solely in additional Parity Securities or in Junior Securities and on Junior Securities which are payable solely in
additional Junior Securities and (ii) redeem, purchase or otherwise acquire Junior Securities in exchange for Junior Securities and Parity Securities in exchange for Parity Securities or Junior Securities. 
  
 3. Ranking 
  
 3.1 Ranking 
  
 The Series C Preferred Stock shall, with respect to dividend rights and distributions upon the liquidation, dissolution or winding-up of the Corporation,
rank as follows: 
  
 (a) senior to all classes of Common Stock
and each other class of Capital Stock or series of preferred stock issued by the Corporation, which is established after the Certificate Date, the terms of which do not expressly provide that such class or series shall rank senior to or on a parity
with the Series C Preferred Stock as to dividend rights and distributions upon the liquidation, dissolution or winding-up of the Corporation (each such other class or series, collectively with the Common Stock, referred to as “Junior
Securities”); 
  
 (b) on a parity with the Series A
Preferred Stock and the Series B Preferred Stock and each class of Capital Stock (other than classes of Common Stock) or series of preferred stock issued by the Corporation, which is established after the Certificate Date, the terms of which
expressly provide that such class or series shall rank on a parity with the Series C Preferred Stock as to dividend rights and distributions upon the liquidation, dissolution or winding-up of the Corporation (the Series A Preferred Stock, the Series
B Preferred Stock and each such other class or series collectively referred to as “Parity Securities”); and 
  
 (c) junior to each class of Capital Stock (other than classes of Common Stock) or series of preferred stock issued by the Corporation, which is
established after the 
  

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 Certificate Date, the terms of which expressly provide that such class or series shall rank senior to the Series C
Preferred Stock as to dividend rights and distributions upon the liquidation, dissolution or winding-up of the Corporation (collectively referred to as “Senior Securities”). 
  
 3.2 Reservation of Rights 
  
 Except as otherwise expressly provided in this Certificate of Designation,
the Corporation shall have the right to amend the Certificate of Incorporation, file certificates of designation and otherwise authorize and issue any Junior Securities, Parity Securities or Senior Securities without restriction at any time and from
time to time. 
  
 4. Conversion 
  
 4.1 Conversion Rights 
  
 (a) Each Holder of Series C Preferred Stock shall have the right, at its
option, at any time and from time to time to convert, subject to the terms and provisions of this Section 4, any or all of such Holder’s shares of Series C Preferred Stock (including fractional shares) into a whole number of fully paid and
non-assessable shares of Common Stock equal to the product of the Conversion Rate then in effect times the sum of (x) the number of shares of Series C Preferred Stock being so converted plus (y) the number of shares of Series C Preferred Stock then
issuable in payment of any Accumulated Dividends accrued with respect to such shares being so converted plus (z) the number of shares of Series C Preferred Stock then issuable in payment of any Current Period Dividends with respect to such shares
being so converted accrued to, and not including, the Conversion Date (or such other date as is specified in Section 4.1(c)), except that with respect to any share of Series C Preferred Stock which shall be called for redemption pursuant to Section
5, such conversion right shall terminate at the close of business on the Business Day immediately prior to the Redemption Date unless the Corporation shall default in making the payment due under Section 5 upon redemption of such share, in which
case such right shall be exercisable at any time until the close of business on the Business Day immediately prior to the date on which such payment is made. If a Holder of Series C Preferred Stock shall exercise its conversion right pursuant to
this Section 4 in connection with an underwritten offering of securities registered pursuant to the Securities Act of 1933, as amended, such Holder, at its option, may condition the conversion of the Holder’s Series C Preferred Stock upon the
closing with the underwriters of the sale of securities pursuant to such offering, in which event such Series C Preferred Stock shall not be deemed to have been converted, and the Persons entitled to receive the Common Stock upon the conversion of
such Series C Preferred Stock shall not be deemed to have received such Common Stock, until immediately prior to the closing of such sale of securities. Each share of Series C Preferred Stock issued after the Issue Date, including, without
limitation, each share of Series C Preferred Stock issued upon the exercise or conversion of the Series D Warrants and each share of Series C Preferred Stock issued as a Preferred Dividend pursuant to Section 2, shall, as of the date of issuance of
such share, have the same Conversion Rate as each share of Series C Preferred Stock outstanding immediately prior to such issuance. 
  

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 (b) The conversion right of a Holder of Series C Preferred Stock shall be exercised by the surrender of
such Holder’s certificates representing shares of Series C Preferred Stock to be converted, duly endorsed in blank or accompanied by proper instruments of transfer, to the Corporation or to the Transfer Agent accompanied by a Conversion Notice.

  
 (i) Any such conversion shall be deemed to
have been consummated immediately prior to the close of business on the Conversion Date (or such other date and time as is specified in Section 4.1(a), this Section 4.1(b)(i) or Section 4.1(c)), and as of such date each Holder converting Series C
Preferred Stock shall be deemed to be the Holder of record of Common Stock issuable upon conversion of such Series C Preferred Stock notwithstanding that the share register of the Corporation may then be closed or that certificates representing such
Common Stock shall not then be actually delivered to such Person. Notwithstanding the foregoing, and solely for purposes of determining whether any share of Series C Preferred Stock subject to such conversion shall be outstanding on any Dividend
Payment Record Date and entitled to payment of Preferred Dividends pursuant to Section 2, if the Corporation or the Transfer Agent receives a Conversion Notice relating to any such conversion on or after any Dividend Payment Record Date but before
the Dividend Payment Date to which such Dividend Payment Record Date relates, such conversion shall be deemed solely for such purposes to have been consummated immediately prior to the close of business on such Dividend Payment Record Date.

  
 (ii) Immediately prior to the close of
business on any Conversion Date (or such other date and time as is specified in Section 4.1(a) or 4.1(c)), all rights with respect to the shares of Series C Preferred Stock so converted, including the rights, if any, to continue to accrue Preferred
Dividends and receive notices, shall terminate, except the rights of Holders thereof to (A) receive certificates for the number of shares of Common Stock into which such shares of Series C Preferred Stock have been converted and (B) exercise the
rights to which such Holders are entitled as Holders of Common Stock. 
  
 (iii) As promptly as reasonably practicable after the Conversion Date, the Corporation shall issue and deliver to the Holder of the shares of Series C Preferred Stock so converted a certificate or certificates
representing the number of whole shares of Common Stock into which such shares of Series C Preferred Stock shall have been converted. 
  
 (iv) All shares of Common Stock issuable upon conversion of the Series C Preferred Stock shall, upon issuance, be duly and validly issued,
fully paid and non-assessable, free of all Liens and not subject to any preemptive rights. 
  

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 (c) If the Conversion Date shall not be a Business Day or shall be a date of record referred to in
Section 4.2(d), then such conversion right shall be deemed exercised on the next Business Day. Upon delivery of a Conversion Notice to the Corporation by a Holder of Series C Preferred Stock, the right of the Corporation to redeem the shares of
Series C Preferred Stock specified in such Conversion Notice shall terminate, regardless of whether a Redemption Notice shall have been given pursuant to Section 5.3. 
  
 (d) Except as provided in Sections 4.1(a), 4.2 and 4.3, the Corporation shall make no adjustment or payment for, or have any
other obligation with respect to, any Accumulated Dividends or Current Period Dividends accrued with respect to shares of Series C Preferred Stock in connection with or following the conversion of such shares. 
  
 (e) In the case of any conversion of fewer than all the shares of Series C
Preferred Stock evidenced by a certificate, the Corporation, upon such conversion, shall execute and the Transfer Agent shall authenticate and deliver to the Holder thereof at such address designated by such Holder, at the expense of the
Corporation, a new certificate or certificates representing the number of unconverted shares of Series C Preferred Stock. No fractional shares of Common Stock shall be issued upon the conversion of the Series C Preferred Stock. If the conversion of
any shares of Series C Preferred Stock would result in the issuance of a fractional share of Common Stock, the Corporation, in its sole discretion, may (i) round such fractional share up to the nearest whole share of Common Stock or (ii) in lieu
thereof pay a cash adjustment in respect of such fractional share in an amount equal to such fractional share multiplied by the Closing Price per share of Common Stock on the Business Day next preceding the Conversion Date. 
  
 4.2 Adjustment of Conversion Rate 
  
 In order to prevent dilution of the conversion rights granted under this
Section 4, the Conversion Rate shall be subject to adjustment from time to time pursuant to this Section 4.2. 
  
 (a) Except as otherwise provided in Section 4.2(c), if and whenever during the period beginning on the Certificate Date and ending on the close of
business on the fourth anniversary of the Certificate Date, the Corporation issues or sells, or in accordance with Section 4.2(b) is deemed to have issued or sold, any shares of Common Stock for no consideration or for a consideration per share
(calculated as set forth in Section 4.2(b)) less than the Trigger Price in effect on the date of issuance or sale (or deemed issuance or sale) of such Common Stock (a “Dilutive Issuance”), then in the event of any Dilutive Issuance
prior to the Issue Date, as of the Issue Date for each such Dilutive Issuance, and in the event of any Dilutive Issuance from and after the Issue Date, immediately upon each such Dilutive Issuance, the Conversion Rate in effect on the date of
issuance or sale (or deemed issuance or sale) of such Common Stock shall be increased by dividing such Conversion Rate by a fraction, (A) the numerator of which is the total number of shares of Common Stock Deemed Outstanding immediately before such
Dilutive Issuance plus the number of shares of Common Stock that could be purchased at the Trigger Price at the time of such Dilutive Issuance for the aggregate 
  


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 consideration, calculated as set forth in Section 4.2(b), received or receivable by the Corporation upon such Dilutive
Issuance and (B) the denominator of which is the total number of shares of Common Stock Deemed Outstanding immediately after such Dilutive Issuance. For purposes of adjusting the Conversion Rate for any Dilutive Issuance prior to the Issue Date, the
Conversion Rate in effect immediately prior to such Dilutive Issuance shall be the Conversion Rate that would then have been in effect after adjusting the Conversion Rate for each prior Dilutive Issuance and the Trigger Price in effect on the date
of such Dilutive Issuance shall be the Trigger Price that would have been in effect as of the Issue Date adjusted, as applicable, as set forth in the definition of Trigger Price in this Certificate of Designation. 
  
 (b) For purposes of determining the adjusted Conversion Rate pursuant to
Section 4.1(a), the following provisions shall be applicable: 
  
 (i) If the Corporation in any manner issues or grants any warrants, rights or options, whether or not immediately exercisable, to subscribe for or to purchase Common Stock, or other securities convertible into or
exchangeable for Common Stock (“Convertible Securities”) (such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as “Options”), and the price per share for
which Common Stock is issuable upon the exercise of such Options is less than the Trigger Price in effect on the date of issuance or grant of such Options, then the maximum total number of shares of Common Stock issuable upon the exercise of all
such Options shall, as of the date of the issuance or grant of such Options, be deemed to be outstanding and to have been issued and sold by the Corporation for such price per share. For purposes of the preceding sentence, the “price per share
for which Common Stock is issuable upon the exercise of such Options” is determined by dividing (x) the total amount, if any, received or receivable by the Corporation as consideration for the issuance or granting of all such Options, plus the
minimum aggregate amount of additional consideration, if any, payable to the Corporation upon the exercise of all such Options, plus, in the case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of
additional consideration payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (y) the maximum total number of shares of Common Stock issuable upon the exercise of all
such Options (assuming full conversion of Convertible Securities, if applicable). No further adjustment to the Conversion Rate shall be made upon the actual issuance of such Common Stock upon the exercise of such Options or upon the conversion or
exchange of Convertible Securities issuable upon exercise of such Options. 
  
 (ii) If the Corporation in any manner issues or sells any Convertible Securities, whether or not immediately convertible (other than where such Convertible Securities are issuable upon the exercise of Options for
which an adjustment of the Conversion Rate is made pursuant to Section 4.2(b)(i)) and the price per share for which Common Stock is issuable upon such conversion or exchange is less than the Trigger Price in effect on the date of issuance of such
Convertible Securities, then the maximum 
  

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 total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible
Securities shall, as of the date of the issuance of such Convertible Securities, be deemed to be outstanding and to have been issued and sold by the Corporation for such price per share. For the purposes of the preceding sentence, the “price
per share for which Common Stock is issuable upon such conversion or exchange” is determined by dividing (x) the total amount, if any, received or receivable by the Corporation as consideration for the issuance or sale of all such Convertible
Securities, plus the minimum aggregate amount of additional consideration, if any, payable to the Corporation upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (y) the
maximum total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities. No further adjustment of the Conversion Rate shall be made upon the actual issuance of such Common Stock upon conversion or
exchange of such Convertible Securities, and if any such issuance or sale of such Convertible Securities is made upon exercise of any Options for which adjustments of the Conversion Rate had been or are to be made pursuant to other provisions of
this Section 4.2, no further adjustment of the Conversion Rate shall be made by reason of such issuance or sale. 
  
 (iii) If there is a change at any time in (A) the aggregate amount of additional consideration payable to the Corporation upon the
exercise of any Options, (B) the aggregate amount of additional consideration, if any, payable to the Corporation upon the conversion or exchange of any Convertible Securities or (C) the rate at which any Options or any Convertible Securities are
exercisable for or convertible into or exchangeable for Common Stock (other than under or by reason of provisions in such Options or Convertible Securities designed to protect against dilution), the Conversion Rate in effect at the time of such
change shall be readjusted to the Conversion Rate which would have been in effect at such time if such Options or Convertible Securities still outstanding had provided for such changed additional consideration or changed rate, as the case may be, at
the time such Options or Convertible Securities were initially granted, issued or sold. 
  
 (iv) If, in any case, the total number of shares of Common Stock issuable upon exercise of any Option or upon conversion or exchange of
any Convertible Securities is not, in fact, issued and the rights to exercise such Option or to convert or exchange such Convertible Securities shall have expired or terminated, the Conversion Rate then in effect shall be readjusted to the
Conversion Rate which would have been in effect at the time of such expiration or termination if such Option or Convertible Securities, to the extent outstanding immediately prior to such expiration or termination (other than in respect of the
actual number of shares of Common Stock issued upon exercise, conversion or exchange thereof), had never been issued. 
  
 (v) If any Common Stock, Options or Convertible Securities are issued, granted or sold for cash, the consideration received therefor for
purposes of this 
  

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 Section 4.2 shall be the amount received by the Corporation therefor before deduction of commissions,
underwriting discounts or allowances or other expenses paid or incurred by the Corporation in connection with such issuance, grant or sale. In case any Common Stock, Options or Convertible Securities are issued or sold for a consideration part or
all of which shall be other than cash, the amount of the consideration other than cash received by the Corporation shall be the fair value of such consideration. If any Common Stock, Options or Convertible Securities are issued in connection with
any acquisition, merger or consolidation in which the Corporation is the surviving corporation, the amount of consideration therefor shall be deemed to be the fair value of such portion of the net assets and business of the non-surviving entity
which is attributable to such Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash shall be determined in good faith by the Board of Directors, whose determination, in the absence
of manifest error, but subject to the following provisions of this Section 4.2(b)(v), shall be final and binding upon the Corporation and the Holders of the Series C Preferred Stock. The Corporation shall give prompt written notice of the
determination of the Board of Directors with respect to the fair value of such consideration other than cash to (i) the TCP Directors, if any, with respect to any such determination occurring prior to the Issue Date, and (ii) the Required Initial
Holders, with respect to any such determination occurring from and after the Issue Date. If the TCP Directors or the Required Initial Holders, as the case may be, object to such determination (whether or not in manifest error) by the Board of
Directors of the fair value of such consideration by giving the Corporation written notice of such objection within ten Business Days after their receipt of the Corporation’s written notice of such determination, and such objection is not
withdrawn, the Corporation shall retain, at the Corporation’s sole cost, an Independent Appraiser to determine the fair value of such consideration. The determination of such Independent Appraiser with respect to the fair value of such
consideration, or, if the Corporation is not required to retain an Independent Appraiser pursuant to this Section 4.2(b)(v), but retains an Independent Appraiser pursuant to the Series A Certificate of Designation, the Series B Certificate of
Designation or any Warrant Agreement to determine the fair value of such consideration for purposes of the Series A Certificate of Designation, the Series B Certificate of Designation or such Warrant Agreement, as the case may be, the determination
of such other Independent Appraiser with respect to the fair value of such consideration, shall be final and binding upon the Corporation and the Holders of the Series C Preferred Stock. Any written notice required to be given by the Corporation,
the TCP Directors or the Required Initial Holders pursuant to this Section 4.2(b)(v) shall be given in the manner, and with the effect, provided in Section 7.4(b). 
  
 (c) No adjustment of the Conversion Rate shall be made pursuant to Section 4.2(a) or 4.2(b) upon the issuance, sale, grant,
exercise, conversion, exchange, reclassification, redemption or other retirement of any of the following securities on or after the Certificate Date: 
  
 (i) the Merger Common Stock; 
  

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 (ii) the Series C Preferred Stock, including the Series C Preferred Stock issuable as
Preferred Dividends pursuant to Section 2 or otherwise issuable after the Certificate Date, issuable pursuant to this Certificate of Designation, or any shares of Common Stock or other securities issuable or payable upon conversion of the Series C
Preferred Stock; 
  
 (iii) any shares of Common
Stock, Options or Convertible Securities issuable as a dividend or distribution on the Series C Preferred Stock in accordance with this Certificate of Designation or any shares of Common Stock issuable or payable upon exercise of any such Options or
upon conversion or exchange of any such Convertible Securities; 
  
 (iv) the Warrants or any shares of Common Stock or Series C Preferred Stock or other securities issuable or payable upon exercise or conversion of the Warrants; 
  
 (v) the Series A Preferred Stock, including the Series A
Preferred Stock issuable as dividends on the Series A Preferred Stock or otherwise issuable after the Certificate Date, issuable pursuant to the Series A Certificate of Designation as in effect on or prior to the Certificate Date, or any shares of
Common Stock or other securities issuable or payable upon conversion of the Series A Preferred Stock pursuant to the Series A Certificate of Designation as in effect on or prior to the Certificate Date; 
  
 (vi) any shares of Common Stock, Options or Convertible
Securities issuable as a dividend or distribution on the Series A Preferred Stock in accordance with the Series A Certificate of Designation as in effect on or prior to the Certificate Date, or any shares of Common Stock issuable or payable upon
exercise of any such Options or upon conversion or exchange of any such Convertible Securities; 
  
 (vii) the Series B Preferred Stock, including the Series B Preferred Stock issuable as dividends on the Series B Preferred Stock or
otherwise issuable after the Certificate Date, issuable pursuant to the Series B Certificate of Designation as in effect on or prior to the Certificate Date, or any shares of Common Stock or other securities issuable or payable upon conversion of
the Series B Preferred Stock pursuant to the Series B Certificate of Designation as in effect on or prior to the Certificate Date; 
  
 (viii) any shares of Common Stock, Options or Convertible Securities issuable as a dividend or distribution on the Series B Preferred
Stock in accordance with the Series B Certificate of Designation as in effect on or prior to the Certificate Date, or any shares of Common Stock issuable or payable upon exercise of any such Options or upon conversion or exchange of any such
Convertible Securities; 
  
 (ix) any shares of
Common Stock, Options or Convertible Securities issuable under (A) the Existing Benefit Plan as in effect on the Certificate Date or (B) 
  

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 the Existing Benefit Plan as amended after the Certificate Date and any Benefit Plan which becomes
effective after the Certificate Date, provided that any such amendment to the Existing Benefit Plan or the effectiveness of any such Benefit Plan is approved by the Board of Directors or by the compensation committee or other authorized committee of
the Board of Directors, or any shares of Common Stock issuable or payable upon exercise of any such Options or upon conversion or exchange of any such Convertible Securities; 
  
 (x) any shares of Common Stock issued or deemed to have been issued in a transaction for which an adjustment
of the Conversion Rate is required pursuant to Section 4.2(d); 
  
 (xi) any shares of Common Stock, Options or Convertible Securities issued in connection with the acquisition of all or part of another business or company, whether by merger, consolidation or otherwise, which is
approved by the Board of Directors or by an authorized committee of the Board of Directors, any shares of Common Stock issuable or payable upon exercise of any such Options or upon conversion or exchange of any such Convertible Securities, or any
shares of Common Stock, payment-in-kind securities or other securities issuable as a dividend or distribution on any such shares of Common Stock, Options or Convertible Securities; 
  
 (xii) any shares of Common Stock, Options or Convertible Securities issued pursuant to or as provided in the
Executive Employment Agreements, or any shares of Common Stock or other securities issuable or payable upon exercise of any such Options or upon conversion or exchange of any such Convertible Securities; or 
  
 (xiii) any shares of Common Stock, Options or Convertible
Securities issued or deemed to have been issued in any transaction not referred to in any of subparagraphs (i) through (xii) of this Section 4.2(c), (A) prior to the Issue Date, with the affirmative vote or consent of the TCP Directors, if any, or
(B) from and after the Issue Date, with the affirmative vote or consent of Holders of the shares of Series C Preferred Stock representing more than 50% of the voting power of the then outstanding shares of Series C Preferred Stock, voting or
consenting, as the case may be, as one class, given in person or by proxy, either in writing or by means of electronic transmission, by resolutions adopted by consent or at an annual meeting of stockholders or at a special meeting of Holders of
Series C Preferred Stock called for such purpose. 
  
 (d) If a
date of record should be fixed at any time, whether by the Corporation or by operation of law, from and after the Certificate Date for the subdivision (by any stock split, stock dividend, recapitalization, reorganization, reclassification or
otherwise) of the shares of Common Stock acquirable hereunder into a greater number of shares, or for the determination of the holders of Common Stock entitled to receive a dividend or other distribution payable in additional shares of Common Stock,
Convertible Securities or Options without payment of any consideration for the additional shares of Common Stock, Convertible 
  

 14 








 Securities or Options (including the additional shares of Common Stock or Convertible Securities issuable upon conversion
or exercise of such Options), then, as of such date of record, the Conversion Rate in effect immediately prior to such date of record shall be proportionately increased (with the number of shares of Common Stock or Convertible Securities issuable
with respect to Options determined from time to time in the manner provided for deemed issuances or sales of Common Stock in Section 4.2(b)). If such subdivision of the shares of Common Stock or the payment of such dividend or distribution does not
thereafter occur, the Conversion Rate in effect shall be readjusted to the Conversion Rate that would have been in effect if the date of record for such subdivision, dividend or distribution had never been fixed. If a date of record should be fixed
at any time, whether by the Corporation or by operation of law, from and after the Certificate Date for the combination (by reverse stock split, recapitalization, reorganization, reclassification or otherwise) of the shares of Common Stock
acquirable hereunder into a smaller number of shares of Common Stock, then, as of such date of record, the Conversion Rate in effect immediately prior to such date of record shall be proportionately reduced. If such combination of the shares of
Common Stock does not thereafter occur, the Conversion Rate then in effect shall be readjusted to the Conversion Rate that would have been in effect if the date of record for such combination had never been fixed. 
  
 (e) If an adjustment of the Conversion Rate pursuant to Section 4.2(a),
4.2(b) or 4.2(d) shall become effective as of the record date or after the record date for the applicable Conversion Rate Adjustment Event, but before the occurrence of such Conversion Rate Adjustment Event, the Corporation may elect to defer, until
after the occurrence of such Conversion Rate Adjustment Event, (i) issuance to the Holder of any shares of Series C Preferred Stock converted after such record date and before the occurrence of such Conversion Rate Adjustment Event the additional
shares of Common Stock issuable upon such conversion in excess of the number of shares issuable on the basis of the Conversion Rate in effect immediately prior to such record date and (ii) payment to such Holder of any amount in cash in lieu of a
fractional share of Common Stock. If the Initial Holders or any of their Affiliates shall be the beneficial and record owners of shares of Series C Preferred Stock as of the date of any such election, the Corporation shall give or cause to be given
to the Initial Holders written notice of such election within five Business Days after the date of such election. 
  
 (f) After the occurrence of any Conversion Rate Adjustment Event requiring adjustment of the Conversion Rate, the Corporation shall give written notice
thereof to the Holders of Series C Preferred Stock within ten Business Days following the occurrence of such Conversion Rate Adjustment Event; provided that if an adjustment of the Conversion Rate pursuant to Section 4.2(a), 4.2(b) or 4.2(d) shall
become effective as of the record date or after the record date for such Conversion Rate Adjustment Event, but before the occurrence of such Conversion Rate Adjustment Event, the Corporation shall give such written notice within ten Business Days
following such record date or subsequent date. Such notice shall state the Conversion Rate and any change in the number of shares of Common Stock issuable upon conversion of the Series C Preferred Stock resulting from such Conversion Rate Adjustment
Event and shall set forth in reasonable detail the method of calculation and the facts upon which 
  

 15 








 such calculation is based. Such calculation shall be certified by an authorized officer of the Corporation. Notice of any
Conversion Rate Adjustment Event shall be deemed given to the Holders of Series C Preferred Stock (i) by the Corporation’s inclusion of the information specified in the second sentence of this Section 4.2(f) in the Corporation’s current
report or next quarterly or annual report filed with the Securities and Exchange Commission pursuant to the Exchange Act or (ii) at the option of the Corporation, by the Corporation’s mailing to such Holders of a written notice containing such
information, in each case within the period specified in the first sentence of this Section 4.2(f). Anything in Section 4.2 to the contrary notwithstanding, the Corporation shall give written notice to the Holders of Series C Preferred Stock within
ten Business Days after the Issue Date of any adjustment of the Conversion Rate pursuant to Section 4.2(a) or 4.2(b) for Dilutive Issuances prior to the Issue Date. 
  
 (g) Anything in Section 4.2 to the contrary notwithstanding, the Corporation shall not be required to give effect to any
adjustment of the Conversion Rate unless and until the net effect of one or more adjustments required hereunder (each of which shall be carried forward until counted toward adjustment), determined as provided therein, shall have resulted in a change
of the Conversion Rate by at least 1%, and when the cumulative net effect of more than one adjustment so determined shall be to change the Conversion Rate by at least 1%, such change of the Conversion Rate shall thereupon be given effect.

  
 4.3 Fundamental Changes 
  
 Upon the occurrence of a Fundamental Change, there shall be no adjustment of
the Conversion Rate and each share of Series C Preferred Stock then outstanding, without the consent of any Holder of Series C Preferred Stock (except as set forth in the last sentence of this Section 4.3), and subject to the Corporation’s
optional redemption rights pursuant to Section 5.1(b), shall become convertible only into the kind and amount of shares of Capital Stock or other securities (of the Corporation or another issuer), cash or other property receivable upon such
Fundamental Change by a Holder of the number of shares of Common Stock into which such share of Series C Preferred Stock could have been converted immediately prior to the effective date of such Fundamental Change assuming such Holder of Common
Stock (x) is not a Person (or a Related Entity of a Person) with which the Corporation consolidated, into which the Corporation merged or which merged into the Corporation, or to or with which the applicable sale, conveyance, lease, exchange,
transfer or other transaction constituting such Fundamental Change was effected, and (y) failed to exercise the Holder’s rights of election, if any, as to the kind of amount of Capital Stock or other securities, cash or other property
receivable upon such Fundamental Change. In any such event, effective provisions shall be made in the certificate or articles of incorporation of the resulting or surviving corporation, in any contract of sale, conveyance, lease, exchange or
transfer, or otherwise so that any resulting or surviving corporation or any Transferee in connection with such Fundamental Change shall expressly assume the obligation to deliver, to the Holders of the Series C Preferred Stock, such shares of
Capital Stock or other securities, cash or other property (i) upon conversion of the Series C Preferred Stock, if the Series C Preferred Stock shall remain outstanding following such Fundamental Change, or (ii) upon the consummation of such

  

 16 








 Fundamental Change or thereafter as provided in such effective provisions, if the Series C Preferred Stock shall not
remain outstanding following such Fundamental Change. The provisions of this Section 4.3 similarly shall apply to successive Fundamental Changes. The provisions of this Section 4.3 shall be the sole right of Holders of Series C Preferred Stock in
connection with any Fundamental Change, and such Holders shall have (i) no separate right to consent with respect to, and shall have no separate vote on, such Fundamental Change (except as expressly required by applicable law) and (ii) no other vote
on such Fundamental Change (except as provided in Section 7.1). 
  
 4.4 Reservation of Common Stock 
  
 The
Corporation at all times shall reserve and keep available for issuance upon the conversion of the Series C Preferred Stock such number of its authorized but unissued shares of Common Stock as shall from time to time be sufficient to permit the
conversion of all outstanding shares of Series C Preferred Stock, and shall take all action required to increase the authorized number of shares of Common Stock if at any time there shall be insufficient authorized unissued shares of Common Stock to
permit such reservation or to permit the conversion of all outstanding shares of Series C Preferred Stock. 
  
 4.5 Taxes and Other Charges 
  
 The issuance or delivery of certificates for Common Stock upon the conversion of shares of Series C Preferred Stock shall be made without charge to the
converting Holder of shares of Series C Preferred Stock for such certificates or for any tax in respect of the issuance or delivery of such certificates or the securities represented thereby, and such certificates shall be issued or delivered in the
respective names of, or in such names as may be directed by, the Holders of the shares of Series C Preferred Stock converted; provided, however, that the Corporation shall not be required to pay any tax which may be payable in respect of any
transfer involved in the issuance and delivery of any such certificate in a name other than that of the Holder of the shares of Series C Preferred Stock converted, and the Corporation shall not be required to issue or deliver such certificate unless
or until the Person or Persons requesting the issuance or delivery thereof shall have paid to the Corporation the amount of such tax or shall have established to the reasonable satisfaction of the Corporation that such tax has been paid. 

 
 5. Redemption of Series C Preferred Stock 
  
 5.1 Redemption at Option of the Corporation 
  
 (a) Except as provided in Section 5.1(b), shares of the Series C Preferred
Stock may not be redeemed by the Corporation prior to the third anniversary of the Issue Date. On or after the third anniversary of the Issue Date, the Series C Preferred Stock may be redeemed for cash by the Corporation, at its option, at any time
and from time to time, in whole or in part, at a redemption price per share (the “Optional Redemption Price”) equal to the sum of (x) the Liquidation Preference per share, (y) any Accumulated Dividends accrued with 
  

 17 








 respect to such share and (z) any Current Period Dividends with respect to such share accrued to, but not including, the
Redemption Date, without interest; provided that the Corporation shall not exercise its redemption rights pursuant to this Section 5.1(a) for a number of shares of Series C Preferred Stock having an aggregate Redemption Price of less than $5 million
unless the aggregate Redemption Price of all shares of Series C Preferred Stock then outstanding is less than $5 million. 
  
 (b) If a Fundamental Change occurs at any time prior to the third anniversary of the Issue Date, the Series C Preferred Stock may be redeemed for cash by
the Corporation, at its option, at any time (including concurrently with the occurrence of such Fundamental Change) and from time to time, in whole or in part, at a redemption price per share (the “Fundamental Change Redemption
Price”) equal to 110% of the sum of (x) the Liquidation Preference per share, (y) any Accumulated Dividends accrued with respect to such share and (z) any Current Period Dividends with respect to such share accrued to, but not including,
the Redemption Date, without interest; provided that the Corporation shall not exercise its redemption rights pursuant to this Section 5.1(b) for a number of shares of Series C Preferred Stock having an aggregate Redemption Price of less than $5
million unless the aggregate Redemption Price of all shares of Series C Preferred Stock then outstanding is less than $5 million. 
  
 (c) If fewer than all the outstanding shares of the Series C Preferred Stock shall be redeemed pursuant to Section 5.1(a) or 5.1(b), the number of shares
to be redeemed shall be determined by the Board of Directors, consistent with the provisions of Section 5.1(a) or 5.1(b), and the shares to be redeemed shall be selected on a pro rata basis (with any fractional shares being rounded up to the nearest
whole share). Notwithstanding the foregoing, consistent with the provisions of Section 5.1(a) or 5.1(b), the Corporation may redeem all, none or any amount greater or less than the pro rata portion of shares held by any Holder of fewer than 10,000
shares of Series C Preferred Stock as may be determined by the Board of Directors. 
  
 (d) Notwithstanding anything in this Section 5.1 to the contrary, for so long as the Initial Holders and their Affiliates are the beneficial and record owners of at least 50% of the shares of Series C Preferred Stock
then outstanding, the Corporation shall not redeem or exercise its rights to redeem any shares of Series C Preferred Stock pursuant to this Section 5.1 without the prior written consent of the Initial Holders and their Affiliates owning beneficially
and of record at least 50% of the shares of Series C Preferred Stock then outstanding unless the Corporation concurrently redeems, purchases or otherwise acquires a pro rata portion of each other class or series of Parity Securities outstanding at
such time, which pro rata portion shall be calculated based on the aggregate redemption, purchase or other acquisition price which would be payable to the Holders of the Series C Preferred Stock and the holders of each such class or series of Parity
Securities to redeem the total number of shares of the Series C Preferred Stock and each such class or series of Parity Securities then outstanding. 
  

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 5.2 Mandatory Redemption 
  
 (a) Subject to the second sentence of this Section 5.2(a), the Corporation shall redeem for cash all outstanding shares of
Series C Preferred Stock, if any, on October 29, 2012, at a redemption price per share (the “Mandatory Redemption Price”) equal to the sum of (x) the Liquidation Preference per share, (y) any Accumulated Dividends accrued with
respect to such share and (z) any Current Period Dividends with respect to such share accrued to, but not including, the Redemption Date, without interest. Notwithstanding anything in this Section 5.2. to the contrary, for so long as the Initial
Holders and their Affiliates are the beneficial and record owners of at least 50% of the shares of Series C Preferred Stock then outstanding, the Corporation shall not redeem any shares of Series C Preferred Stock pursuant to this Section 5.2
without the prior written consent of the Initial Holders and their Affiliates owning beneficially and of record at least 50% of the shares of Series C Preferred Stock then outstanding unless the Corporation concurrently redeems, purchases or
otherwise acquires a pro rata portion of each other class or series of Parity Securities outstanding at such time, which pro rata portion shall be calculated based on the aggregate redemption, purchase or other acquisition price which would be
payable to the Holders of the Series C Preferred Stock and the holders of each such class or series of Parity Securities to redeem the total number of shares of the Series C Preferred Stock and each such class or series of Parity Securities then
outstanding. 
  
 (b) If the funds of the Corporation legally
available for redemption of shares on the Redemption Date are insufficient to redeem on such date all outstanding shares of the Series A Preferred Stock pursuant to the Series A Certificate of Designation, the Series B Preferred Stock pursuant to
the Series B Certificate of Designation and the Series C Preferred Stock pursuant to this Section 5.2, the Corporation shall use those funds that are legally available therefor to redeem the maximum possible number of such shares of Series A
Preferred Stock, Series B Preferred Stock and Series C Preferred Stock ratably among the Holders of such shares such that each Holder of Series A Preferred Stock, each Holder of Series B Preferred Stock and each Holder of Series C Preferred Stock
shall be entitled to receive such Holder’s pro rata share of such legally available funds based on the aggregate redemption price which would be payable to the Holders of the Series A Preferred Stock pursuant to the Series A Certificate of
Designation, to the Holders of the Series B Preferred Stock pursuant to the Series B Certificate of Designation and to the Holders of the Series C Preferred Stock pursuant to this Section 5.2 to redeem the total number of shares of Series A
Preferred Stock, Series B Preferred Stock and Series C Preferred Stock then outstanding. The shares of Series C Preferred Stock not redeemed shall remain outstanding and entitled to all the rights and preferences provided in this Certificate of
Designation. At any time and from time to time after October 29, 2012 when additional funds of the Corporation are legally available for the redemption of shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, the
Corporation shall promptly use such funds to redeem the balance of the shares of Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, on a pro rata basis as aforesaid, that the Corporation is obligated to redeem pursuant
to the Series A Certificate of Designation, the Series B Certificate of Designation or this Section 5.2, as the case may be, but that it has not redeemed. If and for so long as any mandatory redemption obligation with respect to shares of

  

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 Series C Preferred Stock under this Section 5.2 has not been discharged, the Corporation shall not, and shall cause its
subsidiaries not to, (i) redeem, purchase or otherwise acquire for any consideration any Parity Securities or discharge any mandatory or optional redemption, sinking fund or other similar obligation in respect of any Parity Securities, except as
provided in this Section 5.2(b), or (ii) declare or make any Junior Securities Distribution (including, without limitation, any redemption, purchase or other acquisition of any Junior Securities for any consideration) or discharge any mandatory or
optional redemption, sinking fund or other similar obligation in respect of any Junior Securities. 
  
 5.3 Redemption Procedures 
  
 (a) If the Corporation shall redeem shares of the Series C Preferred Stock pursuant to Section 5.1 or 5.2: 
  
 (i) In the case of a redemption pursuant to Section 5.1(a)
or 5.2(a), the Corporation shall send a Redemption Notice to the Holders of Series C Preferred Stock not less than 30 days nor more than 60 days prior to the Redemption Date, and in the case of a redemption pursuant to Section 5.1(b) in connection
with a Fundamental Change, not less than 15 days prior to such Fundamental Change. Neither the failure to give a Redemption Notice nor any defect therein shall affect the validity of the giving of notice for the redemption of any share of Series C
Preferred Stock to be redeemed, except as to any Holder to whom the Corporation has failed to give such Redemption Notice or except as to any Holder whose Redemption Notice was materially defective. 
  
 (ii) On or before any Redemption Date, each Holder of shares
of Series C Preferred Stock to be redeemed shall surrender the certificate or certificates representing such shares of Series C Preferred Stock (properly endorsed or assigned, or transferred, if the Corporation shall so require and the Redemption
Notice shall so state) to the Corporation or the Redemption Agent (if appointed) in the manner and at the place designated in the Redemption Notice. 
  
 (iii) On the Redemption Date, the Corporation or the Redemption Agent, as applicable, shall pay the full Redemption Price in cash to the
Holder whose name appears on such certificate or certificates as the owner thereof. 
  
 (iv) The shares of Series C Preferred Stock represented by each certificate to be surrendered shall no longer be deemed outstanding and
shall be automatically (and without any further action of the Corporation or the Holder) canceled as of the Redemption Date (unless the Corporation shall be in default of the payment of the Redemption Price) whether or not certificates for such
shares are returned to the Corporation, and shall be retired as provided in Section 9.1. 
  
 (v) If fewer than all the shares of Series C Preferred Stock represented by any certificate are to be redeemed, a new certificate shall be
issued 
  

 20 








 representing the unredeemed shares, without cost to the Holder thereof. Upon such redemption, the
Corporation shall execute and the Transfer Agent shall authenticate and deliver such new certificate to the Holder thereof at such address designated by such Holder. If any unredeemed share would be a fractional share, the Corporation, in its sole
discretion, may either issue such fractional share to such Holder or in lieu thereof pay to such Holder a cash adjustment for such fractional share based on the Redemption Price. 
  
 (b) If a Redemption Notice shall have been given as provided in Section 5.3(a), and except as otherwise expressly provided
in this Certificate of Designation, all rights (excluding the right to receive the Redemption Price) of the Holders of shares of Series C Preferred Stock so called for redemption shall cease either (i) from and after the Redemption Date (unless the
Corporation shall default in the payment of the Redemption Price, in which case such rights shall not terminate at the Redemption Date) or (ii) if the Corporation shall so elect and state in the Redemption Notice, from and after the time and date
(which date shall be the Redemption Date or an earlier date not less than 15 days after the date of mailing of the Redemption Notice) on which the Corporation shall irrevocably deposit in trust for the Holders of the shares to be redeemed with a
designated Redemption Agent as paying agent funds in an amount sufficient to pay the Redemption Price at the office of such paying agent on the Redemption Date. Any funds so deposited with such Redemption Agent that shall not be required for such
redemption shall be returned to the Corporation forthwith. Subject to applicable escheat laws, any funds so set aside by the Corporation and unclaimed at the end of one year after the Redemption Date shall revert to the general funds of the
Corporation, after which reversion the Holders of the shares of Series C Preferred Stock so called for redemption shall look only to the general funds of the Corporation for the payment of the Redemption Price, without interest. Any interest accrued
on funds held by the Redemption Agent shall be paid to the Corporation from time to time. 
  
 (c) Except as provided in Sections 5.1(a), 5.1(b) and 5.2(a), the Corporation shall make no adjustment or payment for, or have any other obligation with respect to, any Accumulated Dividends or Current Period
Dividends accrued with respect to shares of Series C Preferred Stock in connection with or following the redemption of such shares. 
  
 (d) No shares of Series C Preferred Stock may be redeemed by the Corporation except with funds legally available for the payment of the Redemption Price.

  
 (e) As provided in Section 4.1(a), and notwithstanding
anything in this Certificate of Designation to the contrary, each Holder of shares of Series C Preferred Stock which shall be called for redemption pursuant to this Section 5 shall have the right, which shall be exercisable at any time up to the
close of business on the Business Day immediately prior to the Redemption Date, to convert all or any portion of such shares into shares of Common Stock pursuant to Section 4, unless the Corporation shall default in making the payment due under this
Section 5 upon redemption of such shares, in which case such right shall be exercisable at any time until the close of business on the Business Day immediately prior to the date on which such payment is made. 
  

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 6. Liquidation Preference 
  
 6.1 Liquidation Preference 
  

Upon the occurrence of any Liquidation Event, after payment or distribution of the assets of the Corporation (whether capital or surplus) shall be made
to or set apart for the holders of Senior Securities, and before any payment or distribution of the assets of the Corporation (whether capital or surplus) shall be made to or set apart for the holders of Junior Securities, the Holders of the Series
C Preferred Stock shall be entitled to receive an amount per share of Series C Preferred Stock in cash equal to the greater of (x) the sum of (A) the Liquidation Preference per share, (B) any Accumulated Dividends accrued with respect to such share
and (C) any Current Period Dividends with respect to such share accrued to, but not including, the date of such Liquidation Event or (y) the aggregate amount that would have been received with respect to the shares of Common Stock such Holders would
have received, assuming the shares of Series C Preferred Stock had been converted into Common Stock pursuant to Section 4 immediately prior to the date of such Liquidation Event. 
  
 6.2 Distribution on Parity Securities 
  
 If, upon any Liquidation Event, the amounts payable with respect to the Series C Preferred Stock pursuant to Section 6.1 and
such amounts payable on all other Parity Securities are not paid in full, the Holders of the Series C Preferred Stock and the holders of such Parity Securities shall share pro rata in the assets of the Corporation available for distribution in
proportion to the full distribution thereof to which each is entitled. 
  
 6.3 Distribution of Remaining Assets 
  
 After
payment of the full amount to which Holders of the Series C Preferred Stock are entitled pursuant to Section 6.1 upon any Liquidation Event, Holders of the Series C Preferred Stock shall have no right or claim to any of the remaining assets of the
Corporation. 
  
 6.4 Effect of Certain Transactions

  
 Neither the sale, conveyance, lease, exchange or transfer of
all or substantially all of the assets of the Corporation (for Capital Stock or other securities, cash or other consideration) nor the consolidation or merger of the Corporation with or into one or more entities shall be deemed to be a Liquidation
Event for purposes of this Certificate of Designation. 
  
 7. Voting Rights

  
 7.1 Voting Rights 
  
 The voting rights and related notice rights of Holders of the Series C
Preferred Stock set forth in this Section 7.1 are subject to, and qualified to the extent provided by, applicable law or regulation, and the NASDAQ Marketplace Rules. The Holders of the Series C Preferred Stock 
  

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 shall be entitled to vote on all matters on which the Holders of Common Stock shall be entitled to vote, in the same
manner and with the same effect as the Holders of Common Stock, voting together with the Holders of Common Stock as a single class. For this purpose, the Holders of the Series C Preferred Stock shall be given notice of any meeting of stockholders of
which the Holders of Common Stock are given notice in accordance with the bylaws of the Corporation. With respect to any matter on which the Holders of the Series C Preferred Stock shall be entitled to vote together with the Holders of Common Stock
as a single class as provided in this Section 7.1, each Holder of the Series C Preferred Stock shall have a number of votes per share of the Series C Preferred Stock held of record by such Holder (on the record date for the meeting of stockholders,
if such matter is subject to a vote at a meeting of stockholders, or on the effective date of any consent, if such matter is subject to a consent of the stockholders without a meeting of stockholders), equal to the quotient of the following, rounded
up to the nearest one-ten thousandth (.0001) of a whole vote (as determined by the Board of Directors in good faith): (x) the Adjusted Series D Warrant Exercise Price divided by (y)
$            , which was the Closing Bid Price on the Business Day immediately preceding the Series D Warrant Issue Date; provided that, if and whenever, from and after the
Series D Warrant Issue Date, (i) the shares of Common Stock shall have been subdivided (by any stock split, stock dividend, recapitalization, reorganization, reclassification or otherwise) into a greater number of shares, such number of votes per
share of Series C Preferred Stock shall be proportionately increased, or (ii) the shares of Common Stock shall have been combined (by reverse stock split, recapitalization, reorganization, reclassification or otherwise) into a smaller number of
shares of Common Stock, such number of votes per share of Series C Preferred Stock shall be proportionately reduced. 
  
 7.2 Approval of Certain Matters 
  
 (a) So long as any shares of Series C Preferred Stock are outstanding, the Corporation shall not (i) amend, alter or repeal any provision of the
Certificate of Incorporation or this Certificate of Designation to alter or change the powers, preferences or special rights of shares of Series C Preferred Stock (whether by merger, consolidation, business combination, other extraordinary corporate
transaction or otherwise) so as to affect them adversely, or, (ii) other than as provided in Section 2.2(a), 4.1, 4.2, 4.3, 5 or 6.1, change the Series C Preferred Stock into any other securities, cash or other property, in the case of each of
clauses (i) and (ii), without the affirmative vote or consent of Holders of the shares representing more than 50% of the voting power of the then outstanding shares of Series C Preferred Stock, voting or consenting, as the case may be, as one class,
given in person or by proxy, either in writing or by means of electronic transmission, by resolutions adopted by consent or at an annual meeting of stockholders or at a special meeting of Holders of Series C Preferred Stock called for such purpose;
provided that any such amendment of this Certificate of Designation that changes any dividend or other amount payable on, or the liquidation preference of, the Series C Preferred Stock shall require the affirmative vote or consent of Holders of the
shares representing at least 66 2/3% of the voting power of the then outstanding shares of Series C Preferred
Stock, voting or consenting, as the case may be, as one class, given in person or by proxy, either in writing or by means of electronic transmission, by resolutions adopted by consent or at an annual meeting of stockholders or at a special meeting
of Holders of Series C Preferred Stock called for such purpose. 
  

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 (b) So long as any shares of Series C Preferred Stock are outstanding, the Corporation shall not
authorize or issue, or increase the authorized amount of, any Parity Securities, including any additional shares of Series C Preferred Stock (other than (i) shares of Series A Preferred Stock or other securities issuable or payable as dividends on
the Series A Preferred Stock and shares of Series A Preferred Stock issuable after the Issue Date pursuant to or as provided in the Executive Employment Agreements or in connection with a stock split or similar transaction, in each case pursuant to
the Series A Certificate of Designation as in effect on or prior to the Certificate Date, (ii) shares of Series B Preferred Stock or other securities issuable or payable as dividends on the Series B Preferred Stock and shares of Series B Preferred
Stock issuable after the Issue Date pursuant to or as provided in the Merger Agreement and the Executive Employment Agreements or in connection with a stock split or similar transaction, in each case pursuant to the Series B Certificate of
Designation as in effect on or prior to the Certificate Date, and (iii) shares of Series C Preferred Stock issuable after the Issue Date upon the exercise or conversion of the Series D Warrants or in connection with a stock split or similar
transaction and shares of Series C Preferred Stock issuable or payable as dividends on the Series C Preferred Stock, in each case pursuant to this Certificate of Designation), or any Senior Securities, or any security convertible into or
exchangeable for any such Parity or Senior Securities (other than the Series D Warrants), without the affirmative vote or consent of Holders of the shares representing more than 50% of the voting power of the then outstanding shares of Series C
Preferred Stock, voting or consenting, as the case may be, as one class, given in person or by proxy, either in writing or by means of electronic transmission, by resolutions adopted by consent or at an annual meeting of stockholders or at a special
meeting of Holders of Series C Preferred Stock called for such purpose. 
  
 (c) The consent or votes required in Sections 7.2(a) and 7.2(b) shall be in addition to any consent or approval of Holders of the Series C Preferred Stock which may be required by law or pursuant to any provision of the Certificate of
Incorporation. 
  
 7.3 Other Voting Rights 
  
 In exercising the voting rights set forth in this Section 7, each share of
Series C Preferred Stock shall have one vote per share except as otherwise expressly provided for in this Certificate of Designation. Except as otherwise required by applicable law or as set forth in this Certificate of Designation, the shares of
Series C Preferred Stock shall not have any relative, participating, optional or other special voting rights and powers, and the vote or consent of the holders of the Series C Preferred Stock shall not be required for the taking of any corporate
action. 
  

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 7.4 Notices; Notices of Record Date 
  
 (a) So long as the Initial Holders and their Affiliates are the beneficial and record owners of at least 50% of the shares
of Series C Preferred Stock then outstanding, in the event of: 
  
 (i) any taking by the Corporation of a record of the holders of any class of securities of the Corporation for the purpose of determining the holders thereof who are entitled to receive any dividend or other
distribution, or any right to subscribe for, purchase or otherwise acquire any shares of Capital Stock of any class or any other securities or property, or to receive any other right, other than, in each case, (A) a regular quarterly or other
periodic dividend publicly announced by the Corporation or provided for in the instrument governing such class of securities (including, without limitation, dividends payable on the Series A Preferred Stock pursuant to the Series A Certificate of
Designation as in effect on or prior to the Certificate Date, dividends payable on the Series B Preferred Stock pursuant to the Series B Certificate of Designation as in effect on or prior to the Certificate Date and Preferred Dividends payable on
the Series C Preferred Stock pursuant to Section 2), (B) any other issuance of the Series A Preferred Stock after the Issue Date pursuant to the Series A Certificate of Designation as in effect on or prior to the Certificate Date, any other issuance
of Series B Preferred Stock after the Issue Date pursuant to the Series B Certificate of Designation as in effect on or prior to the Certificate Date, and any other issuance of the Series C Preferred Stock after the Issue Date pursuant to this
Certificate of Designation or (C) a regular quarterly or other periodic payment of interest in cash or securities on, or such payment of interest effectuated by an increase in the amount of, any issue of the Corporation’s indebtedness in
accordance with the instrument governing such indebtedness, or 
  
 (ii) the proposed filing of a certificate of dissolution in connection with any Liquidation Event, 
  
 then and in each such event the Corporation shall give or cause to be given to each Holder of the Series C Preferred Stock a written notice specifying (i) the date on
which any such record is to be taken for the purpose of such dividend, distribution or right and a description of such dividend, distribution or right or the date on which the filing of such certificate of dissolution is expected to be effected, as
the case may be, and (ii) the date, if any, that is to be fixed, on which the holders of record of Common Stock (or other securities) shall be entitled to exchange their shares of Common Stock (or other securities) for securities or other property
deliverable upon such event. Such notice shall be given at least 20 days prior to the date specified in such notice on which such event, action or record is to be taken or on which the filing of such certificate of dissolution is expected to be
effected. Any failure by the Corporation to provide any such notice required by this Section 7.4(a) shall not affect the validity of any event, action or record required to be specified in such notice. 
  
 (b) Without limiting the generality of Section 7.4(a), any notice required by
Section 7.4(a) to be given to the Holders of shares of Series C Preferred Stock shall be deemed 
  

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 delivered (i) upon personal delivery to the Holder to be notified, (ii) when sent by confirmed telex or facsimile if sent
during normal business hours of the recipient and, if not, then on the next Business Day, (iii) five days after having been deposited into the U.S. mails or (iv) one day after deposit with a nationally recognized overnight courier, specifying next
day delivery, with written verification of receipt. All notices required by Section 7.4(a) shall be sent to each Holder at such Holder’s address appearing on the stock register of the Corporation. 
  
 7.5 Amendment of Certificate of Designation 
  
 So long as any shares of Series C Preferred Stock are outstanding and held
by the Required Initial Holders, in addition to any vote required by law or the Certificate of Incorporation (including this Certificate of Designation), the affirmative vote or consent of Holders of the shares representing more than 50% of the
voting power of the then outstanding shares of Series C Preferred Stock, voting or consenting, as the case may be, as one class, given in person or by proxy, either in writing or by means of electronic transmission, by resolutions adopted by consent
or at an annual meeting of stockholders or at a special meeting of Holders of Series C Preferred Stock called for such purpose shall be required to amend the Series A Certificate of Designation and the Series B Certificate of Designation; provided
that such vote or consent shall not be required with respect to any proposed amendment of the Series A Certificate of Designation or the Series B Certificate of Designation (any such proposed amendment, the “Proposed Amendment”) if
the Corporation shall previously have complied with the following provisions of this Section 7.5 with respect to such Proposed Amendment. If shares of Series C Preferred Stock are held by the Required Initial Holders and the Board of Directors shall
determine that the Corporation will not seek the affirmative vote or consent of the Holders of the Series C Preferred Stock with respect to a Proposed Amendment pursuant to this Section 7.5 prior to submitting such Proposed Amendment to the Holders
of the Series A Preferred Stock or the Holders of the Series B Preferred Stock, as the case may be, for approval, the Corporation shall give written notice of such Proposed Amendment (which shall include the text thereof) to the Required Initial
Holders. If, within ten Business Days after the Corporation shall have given such written notice to the Required Initial Holders, the Required Initial Holders shall give written notice to the Corporation that the Required Initial Holders seek to
have this Certificate of Designation amended in a manner substantially similar to such Proposed Amendment, the Board of Directors, in addition to approving such Proposed Amendment, shall approve, declare advisable and submit to the Holders of the
Series C Preferred Stock for approval such a substantially similar amendment to this Certificate of Designation. If, within the period of ten Business Days described in the immediately preceding sentence, the Required Initial Holders do not provide
such written notice to the Corporation that the Required Initial Holders seek to have this Certificate of Designation so amended, or, if the Required Initial Holders do so notify the Corporation, but the Holders of the Series C Preferred Stock do
not approve or consent to such a substantially similar amendment to this Certificate of Designation, the Corporation shall be deemed to have complied with this Section 7.5 with respect to such Proposed Amendment and the Holders of the Series C
Preferred Stock shall have no right to vote upon or consent to such Proposed Amendment pursuant to this Section 7.5. Any substantially similar amendment to this Certificate of Designation approved or consented to 
  

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 pursuant to this Section 7.5 shall become effective as nearly as practicable concurrently with, or immediately prior to,
the effectiveness of the Proposed Amendment. In no event shall the failure of the Required Initial Holders to seek to have this Certificate of Designation amended in a manner substantially similar to any Proposed Amendment affect the applicability
of this Section 7.5 with respect to any subsequent Proposed Amendment. Any written notice required to be given by the Corporation or the Required Initial Holders pursuant to this Section 7.5 shall be given in the manner, and with the effect,
provided in Section 7.4(b). 
  
 8. Certain Definitions 
  
 Set forth below are the meanings assigned to certain defined terms used in
this Certificate of Designation. 
  
 8.1 “Accumulated
Dividends,” with respect to a share of Series C Preferred Stock, on any date of determination, means all Preferred Dividends that have accrued with respect of such share pursuant to Section 2.1(a) as of the Dividend Payment Date on or
immediately preceding such date of determination, but which have not been paid. The Accumulated Dividends accrued with respect to any share of Series C Preferred Stock shall be reduced by the amount of any Preferred Dividends specified above which
are actually paid with respect of such share as provided in Section 2.1(c). 
  
 8.2 “Adjusted Series D Warrant Exercise Price” means, as of any date of determination, the price, rounded down to the nearest one one-hundredth (0.01) of a cent, equal to the quotient obtained by
dividing (x) the Series D Warrant Exercise Price by (y) 1.3333. 
  
 8.3 “Affiliate” has the same meaning as in Rule 12b-2 under the Exchange Act. 
  
 8.4 “Annual Dividend Rate” has the meaning specified in Section 2.1(a). 
  
 8.5 “Beneficial owner” or “beneficially own” has the same meaning as in Rule 13d-3 under
the Exchange Act. 
  
 8.6 “Benefit Plan” means
any stock option, restricted stock, stock incentive, deferred compensation, profit sharing, defined benefit or other benefit plan of the Corporation or any of its subsidiaries. 
  
 8.7 “Board of Directors” means the board of directors of the Corporation. 
  
 8.8 “Business Day” means any day other than a Saturday, a
Sunday or any day on which banking institutions in The City of New York or the State of Georgia or at a place payment is to be received are authorized by law, regulation or executive order to remain closed. If a payment date is not a Business Day at
a place of payment, payment may be made at that place on the next succeeding Business Day, and no interest shall accrue for the intervening period. 
  

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 8.9 “Capital Stock” means any and all shares, interests, participations, rights or other
equivalents (however designated) of corporate stock or partnership or membership interests, whether common or preferred. 
  
 8.10 “Certificate Date” means the date on which this Certificate of Designation shall become effective under the General Corporation Law
of the State of Delaware. 
  
 8.11 “Certificate of
Incorporation” means the Restated Certificate of Incorporation of the Corporation, as amended from time to time. 
  
 8.12 “Closing Bid Price” means, on any date of determination, the closing bid price of the Common Stock on the NASDAQ National Market.

  
 8.13 “Closing Price” means, with respect to
the Common Stock, on any date, (i) the last sales price on the NASDAQ National Market, the NASDAQ SmallCap Market or the OTC Bulletin Board or the principal securities exchange or other securities market on which the Common Stock is then traded, or
(ii) if the Common Stock is so traded, but not so reported, the average of the last bid and ask prices, as those prices are reported on the NASDAQ National Market, the NASDAQ SmallCap Market or the OTC Bulletin Board or the principal securities
exchange or other securities market on which the Common Stock is then traded, or (iii) if the Common Stock is not listed or authorized for trading on the NASDAQ National Market, the NASDAQ SmallCap Market or the OTC Bulletin Board or any securities
exchange or comparable securities market, the average of the closing bid and ask prices as furnished by two members of the National Association of Securities Dealers, Inc. selected from time to time by the Board of Directors for that purpose. If the
Common Stock is not listed and traded in any manner such that the prices and quotations referred to above are available for the period required hereunder, the Closing Price per share shall be deemed to be the fair value per share of Common Stock as
determined by the Board of Directors. 
  
 8.14 “Common
Stock” means the Corporation’s authorized Common Stock. 
  
 8.15 “Common Stock Deemed Outstanding” means, on any date of determination, the number of shares of Common Stock actually outstanding, plus the maximum total number of shares of Common Stock issuable as of such date of
determination upon the exercise of any then outstanding Options (including, without limitation, the Warrants and any Options outstanding under the Existing Benefit Plan or any other Benefit Plan) or issuable as of such date of determination upon
conversion or exchange of any then outstanding Convertible Securities (including, without limitation, the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock), whether or not such Options or Convertible Securities
are actually exercisable, convertible or exchangeable at such time, without duplication. 
  
 8.16 “Conversion Date” means the date the Corporation or the Transfer Agent receives the Conversion Notice. 
  

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 8.17 “Conversion Notice” means a written notice given by a Holder of Series C Preferred
Stock to the Corporation pursuant to Section 4.1(b) stating that such Holder elects to convert all or a portion of such Holder’s shares of Series C Preferred Stock represented by certificates delivered to the Corporation or the Transfer Agent
contemporaneously with such written notice. The Conversion Notice shall be in substantially the form of Exhibit A hereto. 
  
 8.18 “Conversion Rate” means the number of shares of Common Stock, rounded up to the nearest one-ten thousandth (.0001) of a share of
Common Stock, that shall be issuable upon conversion of one share of Series C Preferred Stock. The Conversion Rate, which is subject to adjustment from and after the Certificate Date as provided in Section 4.2, shall be 1.3333; provided that, if
there shall have occurred after the Series D Warrant Issue Date and before the Certificate Date any event of the type described in Section 4.2(d) that would have resulted in an adjustment of the Conversion Rate if such event had occurred from and
after the Certificate Date, then the Conversion Rate to be in effect in this Certificate of Designation as of the Certificate Date shall be (i) proportionately increased from 1.3333, if such event would have resulted in an increase in the Conversion
Rate pursuant to Section 4.2(d), or (ii) proportionately reduced from 1.3333, if such event would have resulted in a reduction of the Conversion Rate pursuant to Section 4.2(d). 
  
 8.19 “Conversion Rate Adjustment Event” means any event specified in Section 4.2 resulting in an adjustment
of the Conversion Rate. 
  
 8.20 “Convertible
Securities” has the meaning specified in Section 4.2(b). 
  
 8.21 “Corporation” means ITC^DeltaCom, Inc., a Delaware corporation organized and existing under the General Corporation Law of the State of Delaware. 
  
 8.22 “Current Period Dividends,” with respect to a share of Series C Preferred Stock, on any date of
determination, means all Preferred Dividends that have accrued with respect of such share pursuant to Section 2 since the Dividend Payment Date immediately preceding such date of determination, but which have not been paid. 
  
 8.23 “Dilutive Issuance” has the meaning specified in
Section 4.2(a). 
  
 8.24 “Dividend Payment Date”
has the meaning specified in Section 2.1(a). 
  
 8.25
“Dividend Payment Record Date” has the meaning specified in Section 2.1(a). 
  
 8.26 “Dividend Period” has the meaning specified in Section 2.1(a). 
  
 8.27 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 8.28 “Excluded Junior Securities” means any Junior Securities redeemed, purchased or otherwise acquired
pursuant to (i) any agreement by the Corporation to pay cash in lieu of fractional shares (A) in connection with a business combination or other transaction 
  

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 approved by the Board of Directors, (B) pursuant to the Series A Certificate of Designation as in effect on or prior to
the Certificate Date, the Series B Certificate of Designation as in effect on or prior to the Certificate Date or this Certificate of Designation or (C) pursuant to any Warrant Agreement, (ii) any Benefit Plan under which, in accordance with clause
(ix) of Section 4.2(c), issuances or deemed issuances of Common Stock, Options or Convertible Securities shall not result in adjustments of the Conversion Rate, (iii) any transaction for which an adjustment of the Conversion Rate is required
pursuant to Section 4.2(d), (iv) any Executive Employment Agreement, (v) any Warrant Agreement, (vi) the Merger Agreement or (vii) any Transaction Document. 
  
 8.29 “Executive Employment Agreements” means (i) the Employment Agreement, dated as of February 3, 2005, between the Corporation and
Randall E. Curran, as amended from time to time (provided that no amendment to such Employment Agreement after the Certificate Date shall change the type or increase the amount of securities of the Corporation issuable thereunder), (ii) the
Employment Agreement, dated as of February 21, 2005, between the Corporation and Richard E. Fish, Jr., as amended from time to time (provided that no amendment to such Employment Agreement after the Certificate Date shall change the type or increase
of the amount of securities of the Corporation issuable thereunder), and (iii) the Employment Agreement, dated as of February 28, 2005, between the Corporation and James P. O’Brien, as amended from time to time (provided that no amendment to
such Employment Agreement after the Certificate Date shall change the type or increase the amount of securities of the Corporation issuable thereunder). 
  
 8.30 “Existing Benefit Plan” means each of the ITC^DeltaCom, Inc. Stock Incentive Plan and the ITC^DeltaCom, Inc. Executive Stock
Incentive Plan. 
  
 8.31 “Fundamental Change”
means any transaction or event, including, without limitation, any merger, consolidation, sale, conveyance, lease, exchange or transfer of assets, tender or exchange offer, reclassification (including any such reclassification in connection with a
consolidation or merger in which the Corporation is the surviving corporation), capital reorganization, compulsory share exchange or liquidation, in each case in which all or substantially all outstanding shares of the Common Stock, or all or
substantially all of the assets or the property of the Corporation, are converted into or exchanged for Capital Stock (of the Corporation or another issuer) or other securities, cash or other property. 
  
 8.32 “Fundamental Change Redemption Price” has the meaning
specified in Section 5.1(b). 
  
 8.33 “Governance
Agreement” means the Amended and Restated Governance Agreement, dated as of July 26, 2005 and as it may be amended from time to time, among the Corporation and the securityholders of the Corporation identified therein 
  
 8.34 “Holder” means a Person in whose name shares of Capital
Stock are registered on the stock register of the Corporation. 
  

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 8.35 “Independent Appraiser” means an independent investment banking firm or independent
public accounting firm, in each case of nationally recognized standing in the valuation of businesses similar to the business of the Corporation. 
  
 8.36 “Initial Exercise Date” has the meaning specified in the Series D Warrant Agreement. 
  
 8.37 “Initial Holder” means each TCP Securityholder (as such
term is defined in the Governance Agreement) as of the Certificate Date that holds Series D Warrants as of the Certificate Date and that is a Holder of Series C Preferred Stock from time to time. 
  
 8.38 “Issue Date” means the first date on which the Series C
Preferred Stock is issued. 
  
 8.39 “Junior
Securities” has the meaning specified in Section 3.1(a). 
  
 8.40 “Junior Securities Distribution” has the meaning specified in Section 2.2(b). 
  
 8.41 “Liens” means liens and charges other than liens and charges arising under (i) any Transaction Document, (ii) any other agreement
entered into between the Corporation and any Holder of the Series C Preferred Stock from time to time or (iii) any other agreement to which the Corporation is not a party. 
  
 8.42 “Liquidation Event” means a liquidation, dissolution or winding up of the Corporation, whether
voluntary or involuntary. 
  
 8.43 “Liquidation
Preference” has the meaning specified in Section 1.1. 
  
 8.44 “Mandatory Redemption Price” has the meaning specified in Section 5.2(a). 
  
 8.45 “Merger Agreement” means the Agreement and Plan of Merger, dated as of July 2, 2003, as amended from time to time, among the
Corporation, BTI Telecom, Inc., 8DBC1 Corp., WCAS Capital Partners III, L.P., Welsh, Carson, Anderson & Stowe VIII, L.P., WCAS Information Partners, L.P. and certain individual investors and trusts listed on the signature pages thereto.

  
 8.46 “Merger Common Stock” means the Common
Stock issued by the Corporation pursuant to the Merger Agreement. 
  
 8.47 “NASDAQ Marketplace Rules” means the rules, regulations, interpretations, policies and practices of the National Association of Securities Dealers, Inc. and The NASDAQ Stock Market, Inc. in effect from time to time and
applicable to the Corporation. 
  
 8.48 “Optional
Redemption Price” has the meaning specified in Section 5.1(a). 
  

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 8.49 “Options” has the meaning specified in Section 4.2(b). 
  
 8.50 “Parity Securities” has the meaning specified in
Section 3.1(b). 
  
 8.51 “Person” means any
individual, corporation, partnership, joint venture, association, joint-stock issuer, interest, trust or unincorporated organization (including any subdivision or ongoing business of any such entity or substantially all of the assets of any such
entity, subdivision or business). 
  
 8.52 “Post-Record
Date Series C Preferred Stock” means any share of Series C Preferred Stock that is issued (i) after the Issue Date and (ii) after the Dividend Payment Record Date for any Dividend Period but before the Dividend Payment Date for such
Dividend Period. 
  
 8.53 “Preferred
Dividends” has the meaning specified in Section 2.1(a). 
  
 8.54 “Proposed Amendment” has the meaning specified in Section 7.5. 
  
 8.55 “Redemption Agent” means that Person, if any, appointed by the Corporation to hold funds deposited by the Corporation in trust to pay to the Holders of shares of Series C Preferred Stock to be
redeemed. Any Redemption Agent shall be (i) a national banking association or corporation organized and doing business under the laws of the United States of America or of any state or territory thereof or of the District of Columbia, authorized
under such laws to exercise corporate trust powers and subject to supervision or examination by federal, state, territorial or District of Columbia authority, and having a combined capital and surplus of at least $50 million or (ii) an Affiliate of
such a national banking association or corporation that customarily performs the duties of redemption agent for public securities issues. 
  
 8.56 “Redemption Date” means the date set forth in the Redemption Notice which is fixed for redemption of the shares of Series C
Preferred Stock referred to therein. 
  
 8.57 “Redemption
Notice” means that notice to be given by the Corporation to the Holders notifying the Holders as to the redemption, in whole or in part, of the Series C Preferred Stock pursuant to Section 5. The Redemption Notice shall include the
following information: 
  
 (i) the Redemption
Date and the time of day on such date; 
  
 (ii)
the total number of shares of Series C Preferred Stock to be redeemed and, if fewer than all the shares held by such Holder are to be redeemed, the number of such shares to be redeemed from such Holder; 
  
 (iii) the Redemption Price; 
  

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 (iv) the place or places where certificates for such shares are to be surrendered for
payment of the Redemption Price; 
  
 (v) that
dividends on the shares to be redeemed shall cease to accrue on such Redemption Date unless the Corporation defaults in the payment of the Redemption Price; and 
  
 (vi) the name of any bank or other financial institution, if any, performing the duties of Redemption Agent.

  
 The Redemption Notice shall be given by first-class mail to each record Holder
of the shares to be redeemed, at such Holder’s address as such address appears on the books of the Corporation. 
  
 8.58 “Redemption Price” means each of the Optional Redemption Price, the Fundamental Change Redemption Price and the Mandatory Redemption
Price, as the case may be. 
  
 8.59 “Related
Entity” means, with respect to any Person, (i) if such Person is an “ultimate parent entity,” as defined in the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the regulations promulgated thereunder, each
direct or indirect subsidiary of such Person and (ii) if such Person is not an “ultimate parent entity,” as defined in such Act and such regulations, each ultimate parent entity (as so defined) of such Person and each other Person which is
a direct or indirect subsidiary of any such ultimate parent entity. 
  
 8.60 “Required Initial Holders” means the TCP Securityholders (as such term is defined in the Governance Agreement) as of the Certificate Date that hold Series D Warrants as of the Certificate Date, so long as such TCP
Securityholders are the beneficial and record owners, as of any date of determination, of a majority of the shares of Series C Preferred Stock outstanding on such date of determination. 
  
 8.61 “Restricted Securities” means (i) the shares of Series C Preferred Stock issued by the Corporation on
or after the Issue Date other than as Preferred Dividends, (ii) the shares of Series C Preferred Stock and other securities issued by the Corporation as Preferred Dividends on the shares of Series C Preferred Stock referred to in clause (i), and
(iii) the shares of Common Stock and other securities issued by the Corporation upon the conversion of the shares of Series C Preferred Stock referred to in clauses (i) and (ii). 
  
 8.62 “Restricted Securities Legend” means the following legend: 
  
 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 
  

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 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. 
  
 8.63 “Senior
Securities” has the meaning specified in Section 3.1(c). 
  
 8.64 “Series A Certificate of Designation” means the 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 amended from time to time unless otherwise specified in this Certificate of Designation. 
  
 8.65 “Series A Preferred Stock” means the 8% Series A Convertible Redeemable Preferred Stock of the Corporation authorized in the Series
A Certificate of Designation. 
  
 8.66 “Series A Warrant
Agreement” means the Warrant Agreement, dated as of October 29, 2002, between the Corporation and Mellon Investor Services LLC, as Warrant Agent, as amended from time to time, so long as no amendment to such Warrant Agreement after the
Certificate Date shall increase the number of warrants issuable pursuant thereto. 
  
 8.67 “Series B Certificate of Designation” means the 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 amended from time to time unless otherwise specified in this Certificate of Designation. 
  
 8.68 “Series B Preferred Stock” means the 8% Series B Convertible Redeemable Preferred Stock of the
Corporation authorized in the Series B Certificate of Designation. 
  
 8.69 “Series B Warrant Agreement” means the Warrant Agreement, dated as of October 6, 2003, between the Corporation and Mellon Investor Services LLC, as Warrant Agent, as amended from time to time, so long as no amendment
to such Warrant Agreement after the Certificate Date shall increase the number of warrants issuable pursuant thereto. 
  
 8.70 “Series C Preferred Stock” means the 8% Series C Convertible Redeemable Preferred Stock of the Corporation authorized in this
Certificate of Designation. 
  
 8.71 “Series C Warrant
Agreement” means the Warrant Agreement, dated as of March 29, 2005, between the Corporation and Mellon Investor Services LLC, as Warrant Agent, as amended from time to time, so long as no amendment to such Warrant Agreement after the
Certificate Date shall increase the number of warrants issuable pursuant thereto. 
  

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 8.72 “Series D Warrant Agreement” means the Warrant Agreement, dated as of July
26, 2005, between the Corporation and Mellon Investor Services LLC, as Warrant Agent, as amended from time to time, so long as no amendment to such Warrant Agreement after the Certificate Date shall increase the number of warrants
issuable pursuant thereto. 
  
 8.73 “Series D Warrant
Exercise Price” means the Exercise Price as defined in, and in effect under, the Series D Warrant Agreement as of the Initial Exercise Date. 
  
 8.74 “Series D Warrant Issue Date” means the first date on which the Series D Warrants are issued. 
  
 8.75 “Series D Warrants” means the warrants to purchase
Series C Preferred Stock and Common Stock issued by the Corporation pursuant to the Series D Warrant Agreement. 
  
 8.76 “TCP Directors” means, as of any date, the directors serving on the Board of Directors on such date pursuant to a designation made
under the Governance Agreement by any one or more of the TCP Securityholders (as such term is defined in the Governance Agreement) or, if no such directors shall be so serving, the individuals who shall be designated by any one or more of the TCP
Securityholders under the Governance Agreement to exercise observer rights with respect to meetings and actions of the Board of Directors and who shall be exercising such observer rights. 
  
 8.77 “Transaction Documents” means (i) the Governance
Agreement, (ii) the Securities Purchase Agreement, dated as of July 26, 2005, as amended from time to time, among the Corporation and the other parties identified therein, (iii) the Series D Warrant Agreement and (iv) the Registration Rights
Agreement, dated as of July 26, 2005, as amended from time to time, among the Corporation and the securityholders of the Corporation identified therein. 
  
 8.78 “Transfer Agent” means the Person duly appointed by the Corporation in its sole discretion to serve as
transfer agent for the Series C Preferred Stock. The Corporation may serve as Transfer Agent. 
  
 8.79 “Transferee” means any Person that acquires assets of the Corporation in connection with any sale, conveyance, lease, exchange or transfer of such assets by the Corporation to or with such
Person. 
  
 8.80 “Trigger Price” means, the
price, rounded down to the nearest one one-hundredth (0.01) of a cent, equal to the quotient obtained by dividing (x) the Series D Warrant Exercise Price by (y) the Conversion Rate as of the Certificate Date; provided that if and whenever, from and
after the Certificate Date, (i) the Conversion Rate shall be increased 
  

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 pursuant to Section 4.2(d), the Trigger Price then in effect or then deemed to be in effect shall be proportionately
reduced or (ii) the Conversion Rate shall be reduced pursuant to Section 4.2(d), the Trigger Price then in effect or then deemed to be in effect shall be proportionately increased. 
  
 8.81 “Warrant Agreement” means any of (i) the Series A Warrant Agreement, (ii) the Series B Warrant
Agreement, (iii) the Series C Warrant Agreement or (iv) the Series D Warrant Agreement. 
  
 8.82 “Warrants” means (i) the warrants to purchase Common Stock issued by the Corporation pursuant to the Series A Warrant Agreement, (ii) the warrants to purchase Common Stock issued by the
Corporation pursuant to the Series B Warrant Agreement, (iii) the warrants to purchase Common Stock issued by the Corporation pursuant to the Series C Warrant Agreement and (iv) the Series D Warrants; provided that (A) the warrants referred to in
each of clauses (i) and (ii) have the same exercise expiration date and (subject to adjustments pursuant to antidilution provisions of the Series A Warrant Agreement or the Series B Warrant Agreement, as the case may be) the same exercise price as
the warrants issued pursuant to the Series A Warrant Agreement or the Series B Warrant Agreement, as the case may be, which are outstanding as of the Certificate Date, (B) the warrants referred to in clause (iii) have the same exercise expiration
date and (subject to adjustments pursuant to antidilution provisions of the Series C Warrant Agreement) the same exercise price as the warrants issued pursuant to the Series C Warrant Agreement which are outstanding as of the Certificate Date and
(C) the Series D Warrants have the same exercise expiration date and (subject to adjustments pursuant to antidilution provisions and other exercise price adjustment provisions of the Series D Warrant Agreement) the same exercise price as the Series
D Warrants which are outstanding on the Series D Warrant Issue Date. 
  
 9.
Other Provisions 
  
 9.1 Status of Reacquired
Shares 
  
 Shares of Series C Preferred Stock issued and
redeemed or otherwise reacquired by the Corporation, including upon the conversion of such shares into Common Stock, shall be retired and canceled promptly after reacquisition thereof and, upon compliance with the applicable requirements of Delaware
law, shall have the status of authorized but unissued shares of preferred stock of the Corporation undesignated as to series and may, with any and all other authorized but unissued shares of preferred stock of the Corporation, be designated or
redesignated and issued or reissued, as the case may be, as part of any series of preferred stock of the Corporation. 
  
 9.2 Book-Entry Registration 
  
 Notwithstanding any other provision of this Certificate of Designation, the Corporation shall have the right to have its Series C Preferred Stock
registered in book-entry or other 
  

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 electronic form. In the event of such registration, to the extent permitted or required by the rules, regulations and
practices of the applicable book-entry or other electronic system, or by other applicable law or regulation, the Series C Preferred Stock shall not be evidenced by physical stock certificates, and any actions required or permitted under this
Certificate of Designation to be taken by the Corporation or any Holder of the Series C Preferred Stock with respect to such physical stock certificates shall, notwithstanding any other provision of this Certificate of Designation, be in compliance
with this Certificate of Designation if taken in accordance with the rules, regulations and practices of the applicable book-entry or other electronic system and other applicable law or regulation. 
  
 9.3 Notices 
  
 All notices referred to in this Certificate of Designation shall, except as
expressly provided herein, be deemed given in the manner and with the effect provided in the General Corporation Law of the State of Delaware. 
  
 9.4 Transfer Restrictions 
  
 Unless the Corporation otherwise instructs the Transfer Agent, (i) all certificates representing the Restricted Securities, and all certificates issued
upon division or combination of, or in substitution for, such certificates shall bear a legend substantially in the form of the Restricted Securities Legend and (ii) the Transfer Agent shall not register any attempted transfer of Restricted
Securities that is not effected in compliance with the requirements set forth in the Restricted Securities Legend. Whenever the restrictions imposed by this Section 9.4 shall terminate as to any securities, the Holder thereof shall be entitled to
receive from the Corporation new certificates representing such securities that do not bear the Restricted Securities Legend. 
  

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 9.5 Beneficial Ownership 
  
 Upon request by the Corporation from time to time, each Initial Holder shall certify to the Corporation the number of shares
of Series C Preferred Stock, if any, then beneficially owned by such Initial Holder and such Initial Holder’s Affiliates. 
  
 IN WITNESS WHEREOF, ITC^DeltaCom, Inc. caused this Certificate to be signed this      day of
                    , 2005. 
  

			
	ITC^DELTACOM, INC.
		
	By:	 	  


	Name:	 	J. Thomas Mullis
	Title:	 	 Senior Vice President
 -Legal and
Regulatory



  

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 EXHIBIT A 
  

Form of Conversion Notice 
  
 Dated: [                    ] 
  
 The undersigned is the holder of record of
[                    ] shares of the 8% Series C Convertible Redeemable Preferred Stock, par value $0.01 per share (the “Series C Preferred
Stock”), of ITC^DeltaCom, Inc. (the “Corporation”). This Conversion Notice is provided pursuant to Section 4.1(b) of the Certificate of Designation of the Powers, Preferences and Relative, Participating, Optional and Other
Special Rights of 8% Series C Convertible Redeemable Preferred Stock and Qualifications, Limitations and Restrictions Thereof (the “Certificate of Designation”). Capitalized terms not defined herein have the meanings given to such
terms in the Certificate of Designation. 
  
 The undersigned
hereby irrevocably elects to convert [                    ] shares of Series C Preferred Stock represented by the enclosed certificate or
certificates into shares of Common Stock at the Conversion Rate provided by the Certificate of Designation. The undersigned requests that certificates representing such Common Stock be registered in the name or names of the Persons set forth below
for the number of shares of Common Stock issuable upon conversion of the number of shares of Series C Preferred Stock set forth beside such Person’s name below: 
  

					
	 Shares of Series C
 Preferred Stock

	    	 Name and Address

	    	 Taxpayer I.D. No./
 Social Security No.



  
  
 If the number of shares of Series C Preferred Stock that the undersigned is converting is fewer than all of the shares of Series C Preferred Stock
represented by the enclosed certificate or certificates representing the Series C Preferred Stock converted hereby, the undersigned requests that new certificates representing the remaining shares of Series C Preferred Stock be registered in the
name of the undersigned at the address set forth below: 
  

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 Enclosed herewith are (1) written instruments of transfer, duly executed by the undersigned or the
undersigned’s duly authorized legal representative, or in blank, and (2) transfer tax stamps or funds thereof, in each case, that are required pursuant to the Certificate of Designation. 
  

			
	Name:	 	  


	Signature:	 	  


	Address:	 	  


	 	 	  


	 	 	  





			
	Telephone no.:	 	  


	Facsimile no.:	 	  


	  
 Note:
	 	  
 The above signature should correspond exactly with the name on the
face of the enclosed Series C Preferred Stock certificates



  

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