Document:

EXHIBIT 10.19.2

 Exhibit 10.19.2 
 AMENDMENT NO. 1 
 TO EMPLOYMENT AGREEMENT 
 This AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (this “Amendment”) is made as of the 20th day of December 2005 by and between ITC^DeltaCom Inc., a Delaware corporation (“Employer” or the “Company”), and James P. O’Brien
(“Employee”). 
 RECITALS 
 WHEREAS, the Company and the Employee are parties to an Employment Agreement, dated as of February 28, 2005 (the “Agreement”); and 
 WHEREAS, the parties wish to amend certain provisions of the Agreement as set forth herein; 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein, the parties agree as follows: 
 1. Amendment to Section 5. Section 5 of the Agreement is hereby amended by deleting existing Sections 5(a) and 5(b) in their entirety and
by substituting in lieu thereof new Sections 5(a) and 5(b), which shall read in their entirety as follows: 
 (a)
Restricted Stock. Employee has played a critical role in the Company’s restructuring of its capital structure consummated on March 29, 2005 and July 26, 2005 (the “Debt Restructuring”). To induce Employee to accept
employment with the Company, the Company has agreed that, promptly following consummation of the Debt Restructuring, Employee shall receive a grant of restricted shares (the “Restricted Shares”) representing one percent (1%) of each
class or series of equity securities of the Company (each such class or series, a “Class”) outstanding immediately following the completion of the Debt Restructuring and after giving effect to such grant and to any other similar grant (a
“Parallel Inducement Grant”) to any other officer of the Company, calculated on a Fully Diluted Basis, as determined in good faith by the Board or an authorized committee thereof. For purposes of this Section 5(a), a Class of
Restricted Shares shall include common stock, each class or series of preferred stock, and each class or series of warrants to purchase preferred stock, but only if such class or series of warrants is in-the-money as of the date of determination. To
the extent reasonably practicable, any grant of common stock or preferred stock shall be made in the form of restricted stock units issued pursuant to the ITC^DeltaCom, Inc. Executive Stock Incentive Plan and evidenced by stock unit agreements
thereunder. The Company also has agreed that, if the Debt Restructuring is accomplished in more than one transaction, Employee shall be entitled to receive a grant of Restricted Shares of each new Class, if any, authorized and issued in connection
with, and outstanding immediately following the consummation of, such subsequent transaction promptly following such 

 consummation so that, immediately following such consummation and after giving effect to such grant and
any Parallel Inducement Grant, the Restricted Shares of such new Class granted to Employee shall equal five percent (5%) of such new Class on a Fully Diluted Basis, as determined in good faith by the Board or an authorized committee thereof.
For purposes of this Section 5(a), “Fully Diluted Basis” shall mean, with respect to shares of each Class as of the date of determination, the sum of (x) the number of shares of such Class outstanding as of such date of
determination plus (y) the number of shares of such Class issuable as of such date of determination upon the exercise, conversion or exchange of all then-outstanding options, stock units, indebtedness or other rights (other than preferred stock
or warrants exercisable, convertible or exchangeable for or into such Class that are separately granted to Employee hereunder) exercisable for or convertible or exchangeable into, directly or indirectly, shares of such Class, whether at the time of
issuance or upon the passage of time or upon the occurrence of vesting or other future event, provided that such options, stock units, indebtedness or other rights are in-the-money as of such date of determination, but excluding the number of shares
of such Class, if any, issuable as of such date of determination in payment of accrued and unpaid dividends on such Class. Exhibit A to this Amendment sets forth each Class of Restricted Shares and the number of Restricted Shares of each such
Class granted to Employee in satisfaction of the foregoing requirements of this Section 5(a). The Company and Employee agree that if the holders of any Class shall agree in any subsequent transaction involving the Debt Restructuring to exchange
such Class for a new Class, or to accept cancellation of such Class in consideration for the issuance of a new Class, Employee’s right hereunder to receive a grant representing one percent (1%) of such new Class, calculated on a Fully
Diluted Basis, promptly following the consummation of such transaction shall be conditioned on the concurrent surrender by Employee to the Company of such Employee’s ownership of the Class so exchanged or canceled or, as the case may be, the
number of shares of common stock that, upon grant to Employee hereunder, were calculated based on the Class so exchanged or canceled. In accordance with the foregoing, the parties agree that Employee’s entitlement to receive additional warrants
to purchase shares of the Company’s 8% Series C Convertible Redeemable Preferred Stock, par value $0.01 per share, upon any issuance by the Company of such warrants in exchange for common stock purchase warrants issued on March 29, 2005
shall be conditioned upon Employee’s forfeiture of the applicable number of common stock units set forth on Exhibit A hereto based on the number of common stock purchase warrants submitted for exchange. Notwithstanding the foregoing, if
the Board determines in good faith, after consulting with Employee in connection with any such warrant exchange or other transaction, that it is not practicable to issue the foregoing Class of Restricted Shares to Employee, the Board shall grant
Restricted Shares of a different Class (the “Replacement Restricted Shares”) to Employee in lieu of the Restricted Shares not granted to Employee. The Replacement Restricted Shares shall be economically equivalent to the Class of
Restricted Shares in respect of which they are being granted, as determined in good faith by the Board or an 
  

 2 

 authorized committee thereof. For purposes of determining economic equivalence, no value shall be
ascribed to the voting rights of the Restricted Shares in respect of which the Replacement Restricted Shares are being granted. 
 (b) Vesting of Restricted Shares. Subject to the immediately following sentence and acceleration of vesting as set forth in Section 6(a) hereof, the Restricted Shares shall vest as follows: (i) sixty percent (60%) of
each Class of the Restricted Shares shall vest ratably over three (3) years on each anniversary of the Effective Date (collectively, the “Time Vested Stock”); (ii) twenty percent (20%) of each Class of the Restricted Shares
shall vest on the Performance Achievement Date (as defined below) upon achievement of $90 million of EBITDA (as defined below) for any EBITDA Performance Period (as defined below); and (iii) twenty percent (20%) of each Class of the
Restricted Shares shall vest on the Performance Achievement Date upon achievement of $105 million of EBITDA for any EBITDA Performance Period. For purposes of this Section 5(b), “Performance Achievement Date” shall mean the date on
which the Chief Financial Officer of the Company shall certify the Company’s achievement of $90 million or $105 million of EBITDA, as the case may be, for any EBITDA Performance Period. For purposes of this Section 5(b), “EBITDA
Performance Period” shall mean the four most recent full fiscal quarters of the Company for which internal financial statements are available. For purposes of this Agreement (including Section 3(c) hereof and this Section 5(b)),
“EBITDA” shall mean, for the Company and its subsidiaries for any period, the sum, determined on a consolidated basis, of net income (or net loss) after eliminating (i) extraordinary and/or non-recurring items to the extent included
in net income, (ii) interest expense, (iii) income tax expense, (iv) depreciation expense, (v) amortization expense, and (vi) any direct expenses and accounting charges (including, but not limited to, professional fees,
severance costs and financing fees) incurred in or related to the Debt Restructuring, any sale of the Company’s assets, this Agreement or similar agreements entered into with newly hired senior executives. For the avoidance of doubt, EBITDA for
all of the fiscal quarter ending March 31, 2005 shall be applied toward (i) the EBITDA targets for the Fiscal Year ending December 31, 2005 set forth in Exhibit A and (ii) the EBITDA targets referred to in clauses (ii) and
(iii) above, notwithstanding the fact that Employee was not employed by the Company until the Effective Date. If the Company should sell one or more businesses during an EBITDA Performance Period, the EBITDA target for such Performance Period
shall be reduced by the amount of the EBITDA actually contributed by the sold business during the four most recent full fiscal quarters preceding the closing of the sale and the EBITDA achieved during the EBITDA Performance Period shall be reduced
by the amount of the EBITDA actually achieved during such period by such sold business, in each case using allocations approved in good faith by the Compensation Committee. 
 2. Governing Law. This Amendment shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without
giving effect to the conflicts of rules provisions thereof. 
  

 3 

 3. Execution in Counterparts. This Amendment may be executed in any number of counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 4. Effect of
Amendment. This Amendment shall not constitute an amendment or modification of any provision of the Agreement not expressly referred to herein. Except as expressly set forth in this Amendment, the terms, provisions and conditions of the
Agreement shall remain unchanged and in full force and effect. 
 (signature page follows) 
  

 4 

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

  

			
	By:	 	 /s/ James P. O’Brien

		 	James P. O’Brien
	
	ITC DELTACOM, INC.
		
	By:	 	 /s/ J. Thomas Mullis

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

  

 5 

 EXHIBIT A 
  

			
	 Class of Restricted Shares
	  	No. of Restricted Shares Upon Issuance
	 Common Stock (Restricted Stock Units)
	  	275,787              
		
	 8% Series A Convertible Redeemable Preferred Stock (Restricted Stock Units)
	  	1,933.2700*
		
	 8% Series B Convertible Redeemable Preferred Stock (Restricted Stock Units)
	  	5,812.1300*
		
	 Warrants to Purchase 8% Series C Convertible Redeemable Preferred Stock and Common Stock
	  	97,036              

	*	Subject to adjustment as provided in the ITC^DeltaCom, Inc. Executive Stock Incentive Plan and stock unit agreements thereunder.EXHIBIT 10.20

 Exhibit 10.20 
 FORM OF 
 DEFERRED COMPENSATION AGREEMENT 
 THIS DEFERRED COMPENSATION AGREEMENT, dated as of December 23, 2005 (the “Agreement”), is between ITC^DeltaCom, Inc., a Delaware
corporation (the “Company”), and,                              an officer of the
Company (the “Executive”). 
 WITNESSETH: 
 WHEREAS, the Company and the Executive are parties to an Employment Agreement, dated as of
                    , 2005, as amended as of December 20, 2005, pursuant to which the Executive is entitled to receive, and the Board of
Directors of the Company has awarded to the Executive,                      warrants (the “Warrants”) issuable pursuant to a
Warrant Agreement, dated as of July 26, 2005, as amended as of December 21, 2005 (as amended from time to time, the “Warrant Agreement”), between the Company and Mellon Investor Services LLC, as Warrant Agent (the
“Warrant Agent”); 
 WHEREAS, when issued, the Warrants will be exercisable during the period specified in the Warrant
Agreement as the “Exercise Period” for shares of the 8% Series C Convertible Redeemable Preferred Stock, par value $0.01 per share, of the Company (the “Series C Preferred Stock”) or, at the Executive’s election, for
shares of the common stock, par value $0.01 per share, of the Company (the “Common Stock” and together with the Series C Preferred Stock issuable upon exercise of the Warrants, the “Warrant Shares”); 
 WHEREAS, the Warrant Agreement provides that the holder of Warrants surrendered for exercise shall be deemed to have accepted delivery and become a
holder of record of the Warrant Shares issuable upon such exercise as of the date of the surrender of such Warrants and payment of the exercise price thereunder; 
 WHEREAS, the Executive wishes to elect in this Agreement the date or dates on which the Executive shall exercise the Warrants and, in accordance with the foregoing provision of the Warrant Agreement, receive delivery
of the Warrant Shares issuable upon such exercise; and 
 WHEREAS, the Executive intends that such election shall be made pursuant to, and in
compliance with the requirements of, Section 409A of the Internal Revenue Code of 1986, as amended, and regulations of the Treasury Department thereunder for purposes of satisfying the requirements of paragraphs (2), (3) and (4) of
such Section 409A; 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants and conditions hereinafter set forth,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
 1. Capitalized Terms. Capitalized terms used in this Agreement and not defined herein shall have the meanings ascribed to such terms in the Warrant Agreement. 

 2. Issuance of Warrants. The Company and the Executive acknowledge that the Warrants have not been
issued to the Executive prior to the time of execution of this Agreement. The Warrants shall be issued to the Executive substantially concurrently with the entry into effect of this Agreement in accordance with Section 14. 
 3. Election of Exercise Dates. The Executive hereby designates as the date or dates during the Exercise Period on which he shall exercise the
Warrant, and accept delivery of the Warrant Shares upon such exercise, the date or dates set forth in the Deferred Exercise Instruction attached hereto as Exhibit A and made a part of this Agreement by this reference. The Executive and the
Company agree to execute such Deferred Exercise Instruction concurrently with the execution of this Agreement. The Executive authorizes and directs the Company, upon the execution thereof, immediately to deliver such Deferred Exercise Instruction to
the Warrant Agent as contemplated by the Warrant Agreement. The Company and the Executive may mutually amend such Deferred Exercise Instruction or enter into a new Deferred Exercise Instruction that supersedes such Deferred Exercise Instruction, but
neither party shall be under any legal obligation to do so. Promptly after the execution thereof, the Company shall deliver any such amended or new Deferred Exercise Instruction to the Warrant Agent as contemplated by the Warrant Agreement.

 4. Notice of Deferred Exercise. Promptly following its receipt from the Executive of request therefor, the Company shall
countersign each Notice of Deferred Exercise which is properly completed by the Executive consistent with the applicable Deferred Exercise Instruction then in effect. 
 5. Acknowledgement. The Executive acknowledges to the Company that, by entering into this Agreement, he will contractually limit his right to exercise Warrants that, in the absence of this Agreement, he would
have the right to exercise at any time during the Exercise Period. The Executive represents and acknowledges to the Company that, in executing this Agreement, the Executive does not rely and has not relied upon any representation or statement made
by the Company or the Company’s employees, agents, representatives, or attorneys with regard to the subject matter, basis, or effect of this Agreement or otherwise. The Executive further acknowledges and agrees that the Executive has been
advised by the Company to consult with an attorney before executing this Agreement and that the Executive in fact has consulted with an attorney before executing this Agreement. 
 6. Notices. All communications, requests, consents, and other notices provided for or permitted in this Agreement shall be in writing and shall be
deemed give if delivered by hand, facsimile transmission, e-mail, or first class mail, postage prepaid, to the last known address, facsimile transmission number, or e-mail address, as the case may be, of the recipient. 
 7. Governing Law. This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware without
giving effect to the conflicts of rules provisions thereof. 
 8. Assignment. Neither this Agreement nor any rights or duties
hereunder may be assigned by the Executive or the Company without the prior written consent of the other party. 
  

 2 

 9. Amendments. No provisions of this Agreement may be altered, amended, revoked, or waived, except
by an instrument in writing, signed by each party to this Agreement. 
 10. Binding Effect. Except as otherwise provided herein, this
Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective legal representatives, heirs, successors, and permitted assigns. 
 11. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 12. Arbitration. Any dispute, controversy, or question arising under, out of, or relating to this Agreement (or the breach thereof)
shall be referred for arbitration in the City of Wilmington, Delaware or the City of New York to a neutral arbitrator selected by Executive and the Company, and such arbitration shall be the exclusive and sole means for resolving any such dispute,
controversy, or question. 
 13. Entire Agreement. This Agreement (which shall include Exhibit A hereto and any amended or new
Deferred Exercise Instruction executed pursuant to Section 3), together with the Warrant Agreement, sets forth the entire agreement and understanding of the parties and supersedes all prior understandings, agreements, or representations by or
between the parties, whether written or oral, which relate in any way to the subject matter hereof. The parties hereto have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any of the provisions of this
Agreement. 
 14. Effectiveness. This Agreement shall become effective, and shall be a legal and binding obligation of the parties
hereto, as of the time on the date hereof on which this Agreement shall have been executed by both parties. 
 [signature page follows]

  

 3 

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

  

			
	ITC^DELTACOM, INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	 EXECUTIVE
  
  

  

 4 

 Exhibit A 
 December 23, 2005 
 Mellon Investor Services LLC 
 200 Galleria Parkway, Suite 1900 
 Atlanta, GA 30339 
 Attention: Client Services Manager 
 Ladies and Gentlemen: 
 The
undersigned Holder and ITC^DeltaCom, Inc. (the “Company”) refer hereby to the Warrant Agreement, dated as of July 26, 2005, as amended as of December 21, 2005, between the Company and Mellon Investor Services LLC, as Warrant
Agent (as amended from time to time, the “Agreement”). Capitalized terms used in this letter and not defined herein have the meanings given to such terms in the Agreement. 
 This letter constitutes a Deferred Exercise Instruction furnished by the Company pursuant to Section 3(k) of the Agreement. 
 The Holder refers to the following Warrants registered in the name of the Holder in the register of Warrants maintained by the Warrant Registrar:

  

			
	 Warrant Certificate No.
	  	 No. of Warrants

  
  
 The Holder hereby notifies the Warrant Agent that, during the Exercise Period, the Holder may exercise the foregoing Warrants (and any Warrants issued in
exchange, replacement or substitution therefor) only on one of the following dates: 
  

	 	1.	Time-Vesting Warrants. The Holder elects to defer exercise of his vested Time-Vesting Warrants until
                     . 

  

	 	2.	Performance-Vesting Warrants. The Holder elects to defer exercise of his vested Performance-Vesting Warrants until the following dates: 

  
  
  
 [signature page follows] 

 The Warrant Agent is entitled to rely upon this letter and is irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. 
  

			
	Very truly yours,
	
	 HOLDER
  
  

	
	COMPANY
		
	By:	 	  

	Name:	 	
	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00100-of-00352.parquet"}]]