Document:

Copy of Third Amendment, dated as of December 28, 2010

 Exhibit (10)m(2) 

 
  

 
 STEPAN
COMPANY 
  
  

THIRD AMENDMENT 
 Dated as of December 28, 2010 
 to: 

AMENDED 1998 NOTE AGREEMENT 

and 
 2002
NOTE PURCHASE AGREEMENT 
 Each as described herein 

 
  

 
  

 

 THIRD AMENDMENT 

THIS THIRD AMENDMENT, dated as of December 28, 2010 (the “Third
Amendment”), to each of the Outstanding Agreements (as defined below) is among STEPAN COMPANY, a Delaware corporation (the “Company”), and each of the institutions which is a signatory to this
Third Amendment (collectively, the “Noteholders”). 
 RECITALS: 

A. The Company and the Noteholders have heretofore entered into the various Note Agreements described on the attached
Schedule A (each as amended by the First Amendment, dated as of February 27, 2004, but effective as of December 31, 2003 and the Second Amendment dated as of May 3, 2004, collectively, the “Outstanding
Agreements”), pursuant to which the Company issued its Notes as described on said Schedule A (collectively, the “Notes”). The Notes which are presently outstanding are hereafter referred to as the
“Outstanding Notes.” 
 B. The Company and the Noteholders now desire to amend the Outstanding Agreements in
the respects, but only in the respects, hereinafter set forth. 
 C. Capitalized terms used herein shall have the respective
meanings ascribed thereto in the Outstanding Agreements unless herein defined or the context shall otherwise require. 
 D. All
requirements of law have been fully complied with and all other acts and things necessary to make this Third Amendment a valid, legal and binding instrument according to its terms for the purposes herein expressed have been done or performed.

 NOW, THEREFORE, upon the full and complete satisfaction of the conditions precedent to the
effectiveness of this Third Amendment set forth in Section 3.1 hereof, and in consideration of good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, the Company and the Noteholders do hereby agree
as follows: 
 SECTION 1. THIRD AMENDMENT. 

Section 1.1. Schedule B of each of the Outstanding Agreements is hereby amended by (i) deleting the last sentence of the
definition of “Investments” in its entirety; (ii) deleting the definition of “Restricted Subsidiary” in its entirety and replacing it with the following: 

“Restricted Subsidiary” means any Subsidiary in which: (i) at least a majority of the voting
securities are owned by the Company and/or one or more Restricted Subsidiaries and (ii) the Company has not designated an Unrestricted Subsidiary by notice in writing given to the holders of the Notes. The Company may from time to time cause
any Subsidiary (other than a Subsidiary Guarantor) 

  
 - 1 -

 
to be designated as an Unrestricted Subsidiary or any Unrestricted Subsidiary to be designated a Restricted Subsidiary; provided, however, that at the time of such designation and immediately
after giving effect thereto, (a) no Default or Event of Default would exist under the terms of this Agreement, and (b) the Company and its Restricted Subsidiaries would be in compliance with all of the covenants set forth in
Section 9 and Section 10 of this Agreement if tested on the date of such action and provided, further, that once a Subsidiary has been designated an Unrestricted Subsidiary, it shall not thereafter be redesignated as a
Restricted Subsidiary on more than one occasion and once a Subsidiary has been designated a Restricted Subsidiary, it shall not thereafter be redesignated as an Unrestricted Subsidiary on more than one occasion. Within ten (10) days following
any designation described above, the Company will deliver to you a notice of such designation accompanied by a certificate signed by a Senior Financial Officer of the Company certifying compliance with all requirements of this definition and setting
forth all information required in order to establish such compliance. 
 ; (iii) (w) deleting the reference to “and”
immediately prior to clause (b) in the definition of “Permitted Guaranties” and “Specified Subsidiary Indebtedness” and replacing each reference with a reference to “,”; (x) adding a reference to “and
(c) the Term Credit Agreement,” immediately prior to the word “provided” in the definition of “Permitted Guaranties” and “Specified Subsidiary Indebtedness”; (y) adding a reference to “or Term Credit
Agreement, as applicable,” immediately following the reference to the phrase “Revolving Credit Agreement” in subclause (i) and subclause (ii) of the proviso to the definition of “Specified Subsidiary Indebtedness”;
and (iv) adding the following new defined term in the appropriate alphabetical order therein: 

“Term Credit Agreement” means that certain Amended and Restated Credit Agreement dated as of
August 27, 2010 among the Company, JPMorgan Chase Bank, N.A., as Administrative Agent and the other lenders named therein, such term to include any credit facility or other instrument evidencing borrowed money replacing all or part of such
Amended and Restated Credit Agreement. 
 Section 1.2. Section 9.8 of each of the Outstanding Agreements is
hereby amended by adding a reference to “or the Term Credit Agreement” immediately following the reference to “Revolving Credit Agreement” in the first sentence of such Section 9.8. 

Section 1.3. Section 10.5 of each of the Outstanding Agreements is hereby deleted in its entirety and replaced
with the following: 
 Section 10.5. Limitations on Investments. The Company will not itself, and will not permit
any Restricted Subsidiary to, make any Investment, or any commitment to make any Investment, if, immediately after giving effect to any such proposed Investment, (a) the aggregate amount of all Investments made after September 29, 2005
(all such Investments to be taken at the cost thereof at the time of making such Investment without allowance for any subsequent write-offs or appreciation or depreciation thereof, but less any amount repaid or recovered on account of capital or
principal), shall exceed 30% of the Consolidated Tangible Net Worth of the Company and its Restricted Subsidiaries, or (b) Consolidated Funded Indebtedness shall exceed 55% of Consolidated Capitalization. 

  
 - 2 -

 Section 1.4. Schedule 10.5 of each of the Outstanding Agreements is hereby
deleted in its entirety. 
 SECTION 2. REPRESENTATIONS, WARRANTIES AND
AGREEMENTS OF THE COMPANY. 
 Section 2.1. To induce the
Noteholders to execute and deliver this Third Amendment, the Company represents and warrants to the Noteholders (which representations and warranties shall survive the execution and delivery of this Third Amendment) that: 

(a) this Third Amendment has been duly authorized, executed and delivered by it and this Third Amendment, and each of the Outstanding
Agreements as amended by this Third Amendment, constitute the legal, valid and binding obligations, contracts and agreements of the Company enforceable against it in accordance with their respective terms, except as enforcement may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws or equitable principles relating to or limiting creditors’ rights generally; 
 (b) the execution, delivery and performance by the Company of this Third Amendment (i) has been duly authorized by all requisite corporate action and, if required, shareholder action, (ii) does
not require the consent or approval of any governmental or regulatory body or agency, and (iii) will not (A) violate (1) any provision of law, statute, rule or regulation or its certificate of incorporation or bylaws, (2) any
order of any court or any rule, regulation or order of any other agency or government binding upon it, or (3) any provision of any material indenture, agreement or other instrument to which it is a party or by which its properties or assets are
or may be bound, or (B) result in a breach or constitute (alone or with due notice or lapse of time or both) a default under any indenture, agreement or other instrument referred to in clause (iii)(A)(3) of this Section 2.1(b);

 (c) as of the date hereof and after giving effect to this Third Amendment, no Default or Event of Default under any of the
Outstanding Agreements has occurred which is continuing; and 
 (d) all of the representations and warranties contained in
Section 5 of each of the Outstanding Agreements are true and correct in all material respects with the same force and effect as if made by the Company on and as of the date hereof, except that any representation or warranty made as of a
specific date shall be deemed made as of such specific date. 
 Execution and delivery by the Company of this Third Amendment constitutes the
certification by the Company that the foregoing representations and warranties are true and correct on and with respect to the date hereof. 

  
 - 3 -

 SECTION 3. CONDITIONS TO EFFECTIVENESS
OF THIS THIRD AMENDMENT. 
 Section 3.1. This Third
Amendment shall not become effective until, and shall become effective when, each and every one of the following conditions shall have been satisfied: 
 (a) executed counterparts of this Third Amendment, duly executed by the Company and the Required Holders of the Outstanding Notes under each Outstanding Agreement, shall have been delivered to the
Noteholders; 
 (b) a true, complete and correct copy of the fully executed Term Credit Agreement, including all exhibits,
schedules and amendments thereto shall have been delivered to the Noteholders; and 
 (c) the representations and warranties of
the Company set forth in Section 2 hereof are true and correct on and with respect to the date hereof. 
 Upon receipt of all of the
foregoing, this Third Amendment shall become effective. 
 SECTION 4. PAYMENT OF
NOTEHOLDERS’ COUNSEL FEES AND EXPENSES. 

Section 4.1. The Company agrees to pay upon demand, the reasonable fees and expenses of Chapman and Cutler LLP, counsel to the
Noteholders, in connection with the negotiation, preparation, approval, execution and delivery of this Third Amendment. 

SECTION 5. MISCELLANEOUS. 
 Section 5.1. This Third Amendment shall be construed in connection with and as part of each of the Outstanding Agreements, and except as modified and expressly amended by this Third Amendment,
all terms, conditions and covenants contained in each of the Outstanding Agreements and each of the Outstanding Notes are hereby ratified and shall be and remain in full force and effect. 

Section 5.2. Any and all notices, requests, certificates and other instruments executed and delivered after the execution and
delivery of this Third Amendment may refer to the Outstanding Agreements without making specific reference to this Third Amendment but nevertheless all such references shall include this Third Amendment unless the context otherwise requires.

 Section 5.3. The descriptive headings of the various Sections or parts of this Third Amendment are for
convenience only and shall not affect the meaning or construction of any of the provisions hereof. 
 Section 5.4.
This Third Amendment shall be governed by and construed in accordance with Illinois law. 

  
 - 4 -

 Section 5.5. This Third Amendment may be executed in any number of counterparts,
each executed counterpart constituting an original, but all together only one agreement. 
 [Signature Pages Follow] 

  
 - 5 -

 IN WITNESS WHEREOF, the parties hereto have
executed and delivered this Third Amendment as of the date first written above 
  

			
	STEPAN COMPANY
		
	By	 	 /s/ James E. Hurlbutt

		 	Name: James E. Hurlbutt
		 	Title: Vice President and Chief Financial Officer

 [Third Amendment—Stepan Company] 

 Accepted as of the date first written above: 

 

			
	 THE NORTHWESTERN MUTUAL
LIFE INSURANCE COMPANY (as Noteholder under the Amended 1998 Note Agreement and the 2002 Note Purchase Agreement)

		
	By	 	 /s/ Timothy S. Collins

		 	Name: Timothy S. Collins
		 	Title: Authorized Signatory
	
	 THE NORTHWESTERN MUTUAL
LIFE INSURANCE COMPANY for its Group Annuity Separate Account (as Noteholder under the 2002 Note Purchase Agreement)

		
	By	 	 /s/ Timothy S. Collins

		 	Name: Timothy S. Collins
		 	Title: Authorized Signatory

 [Third
Amendment—Stepan Company] 

 
			
	 MONY LIFE INSURANCE COMPANY
(as
Noteholder under the 2002 Note Purchase Agreement)

		
	By	 	  

		 	Name:
		 	Title:

 [Third Amendment—Stepan
Company] 

 
					
	 PRUDENTIAL LIFE INSURANCE
COMPANY
 (as Noteholder under the Amended 1998 Note Agreement and the 2002 Note Purchase
Agreement)

		
	By	 	  

		 	Name:	 	
		 	Title:	 	

 [Third Amendment—Stepan Company] 

 
			
	 THRIVENT FINANCIAL FOR
LUTHERANS
(f/k/a Aid Association for Lutherans)
(as Noteholder under the 2002 Note Purchase Agreement)

		
	By	 	  

		 	Name:
		 	Title:

 [Third Amendment—Stepan
Company] 

 SCHEDULE A 

OUTSTANDING AGREEMENTS AND OUTSTANDING NOTES 

 

	1.	The Amended and Restated Note Agreement dated as of December 1, 2002 among the Company and each of the institutional investors listed therein, as amended by the
First Amendment, dated as of February 27, 2004, but effective as of December 31, 2003 and the Second Amendment dated as of May 3, 2004 (the “Amended 1998 Note Agreement”) pursuant to which the Company issued its 6.59%
Amended and Restated Senior Notes due October 1, 2013. The Amended 1998 Note Agreement amended and restated the separate Loan Agreements each dated as of October 1, 1998. 

 

					
	 REGISTERED NOTEHOLDER
	  	PRINCIPAL AMOUNT OF
OUTSTANDING NOTES AS
OF NOVEMBER 30, 2010	 
		
	 The Northwestern Mutual Life Insurance Company
	  	$	3,636,362	  
		
	 Prudential Life Insurance Company
	  	$	1,818,181	  

  

	2.	The Note Purchase Agreement dated as of September 10, 2002 among the Company and each of the institutional investors listed therein, as amended by the First
Amendment, dated as of February 27, 2004, but effective as of December 31, 2003 and the Second Amendment dated as of May 3, 2004 (the “2002 Note Purchase Agreement”) pursuant to which the Company issued its 6.86%
Senior Notes due September 1, 2015. 

  

					
	 REGISTERED NOTEHOLDER
	  	PRINCIPAL AMOUNT OF
OUTSTANDING NOTES AS
OF NOVEMBER 30, 2010	 
		
	 The Northwestern Mutual Life Insurance Company
	  	$	 14,285,334	  
		
	 The Northwestern Mutual Life Insurance Company for its Group Annuity Separate Account
	  	$	 714,266	  
		
	 Thrivent Financial for Lutherans
	  	$	 2,142,800	  
		
	 Prudential Life Insurance Company
	  	$	 2,142,800	  
		
	 MONY Life Insurance Company
	  	$	 2,142,800Fourth Amendment to Credit Agreement

 Exhibit 10.1 
 EXPLANATORY NOTE TO THIS EXHIBIT 
 The representations and warranties included in
this Fourth Amendment to Credit Agreement and First Amendment to Security Agreement (the “Amendment”) were made by the Company to the parties to this Amendment. These representations and warranties were made as of specific dates, only for
purposes of this Amendment and for the benefit of the contractual parties thereto. These representations and warranties were subject to important exceptions and limitations agreed upon by the parties made for the purposes of allocating contractual
risk between the parties rather than establishing these matters as facts, and were made subject to a contractual standard of materiality that may be different from the standard generally applicable under federal securities laws. This Amendment is
filed with this report only to provide investors with information regarding the Amendment’s terms and conditions, and not to provide any other factual information regarding the Company or its business. Moreover, information concerning the
subject matter of the representations and warranties may have changed, and may continue to change, after the date of this Amendment, and such subsequent information may or may not be fully reflected in the Company’s public reports. Accordingly,
investors should not rely on the representations and warranties contained in this Amendment or any description thereof as characterizations of the actual state of facts or condition of the Company, its subsidiaries or affiliates. The information in
this Amendment should be considered together with the Company’s public reports filed with the Securities and Exchange Commission. 

 EXECUTION VERSION 

FOURTH AMENDMENT TO CREDIT AGREEMENT AND 
 FIRST AMENDMENT TO SECURITY AGREEMENT 
 THIS FOURTH
AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made and entered into as of this 22nd day of February, 2011, by and between CBEYOND COMMUNICATIONS, LLC, a Delaware limited liability company, as borrower (the
“Borrower”), each of the other Loan Parties signatory hereto and BANK OF AMERICA, N.A., a national banking association, as Administrative Agent and Lender (the “Agent”). 

W I T N E S S E T H: 

WHEREAS, the Borrower, Agent and Lender are parties to that certain Credit Agreement, dated as of February 8, 2006
(as amended, restated, supplemented or modified from time to time, the “Credit Agreement”), pursuant to which the Lender extended certain financial accommodations to the Borrower; 

WHEREAS, the Borrower and the other grantors thereto executed that certain Security Agreement, dated as of
February 8, 2006 (as amended, restated, supplemented or modified from time to time, the “Security Agreement”) in favor of the Agent for its own benefit and the benefit of the Lenders; 

WHEREAS, the Borrower, Agent, Lender and the other Loan Parties signatory thereto are parties to that certain Consent to
Credit Agreement dated as of October 29, 2010 (the “Aretta Consent”), whereby Agent and Lender consented to the purchase by the Borrower of all Equity Interests of Aretta Communications, Inc., a Delaware corporation
(“Aretta”), pursuant to that certain Stock Purchase Agreement, dated on or about October 29, 2010, by and among the Borrower, Cbeyond, Inc., a Delaware corporation (f/k/a Cbeyond Communications, Inc.)
(“Cbeyond”), Aretta and Michael A. Rand and Marc J. Fribush, each in their individual capacity and the owners of all the Equity Interests of Aretta (the “Aretta Stock Purchase”); 

WHEREAS, the Borrower, Agent, Lender and the other Loan Parties signatory thereto are parties to that certain Consent to
Credit Agreement dated as of November 2, 2010 (the “Maximum Consent”), whereby Agent and Lender consented to the purchase by the Borrower of certain assets of MaximumASP, LLC, MaximumCOLO, LLC and Maximum Holdings, LLC, each a
Kentucky limited liability company, pursuant to that certain Asset Purchase Agreement, dated as of November 3, 2010, by and among the Borrower, Cbeyond, Maximum and Wade Lewis and Silas Boyle, each in their individual capacity (the
“Maximum Asset Purchase”); 
 WHEREAS, the Borrower has requested that the Agent and Lender,
and the Agent and Lender have agreed to, subject to the terms hereof, amend certain provisions of the Credit Agreement, as more fully set forth herein, including an increase in the aggregate commitments and extension of the Maturity Date; and

 NOW, THEREFORE, in consideration of the premises, the terms and conditions contained herein, and other good
and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1.        Definitions.    All capitalized terms used herein and not expressly defined herein shall have the same respective meanings
given to such terms in the Credit Agreement. 

2.        Amendments to the Credit Agreement and Security Agreement

  

 2.1        Section 1.01
of the Credit Agreement, “Defined Terms,” is hereby amended by adding each of the following defined terms in alphabetical order: 

“Autoborrow Service Agreement” means that certain Autoborrow Service Agreement dated as
of the date hereof by and between the Borrower and Bank of America, as amended, modified, restated or supplemented from time to time, which evidences the Cash Management Line of Credit. 

“BBA LIBOR Daily Floating Rate” means a fluctuating rate of interest which can change on
each Business Day. The rate will be adjusted on each Business Day to equal the British Bankers Association LIBOR Rate (“BBA LIBOR”) for U.S. Dollar deposits for delivery on the date in question for a one month term beginning on
that date. Agent will use the BBA LIBOR Rate as published by Reuters (or other commercially available source providing quotations of BBA LIBOR as selected by Agent from time to time) as determined at approximately 11:00 a.m. London time two
(2) London Banking Days prior to the date in question, as adjusted from time to time in Agent’s sole discretion for reserve requirements, deposit insurance assessment rates and other regulatory costs. If such rate is not available at such
time for any reason, then the rate will be determined by such alternate method as reasonably selected by Agent. A “London Banking Day” is a day on which banks in London are open for business and dealing in offshore dollars. 

“Cash Management Line of Credit” means a secured line of credit, by and between the
Borrower and Bank of America having availability of not more than the lesser of (a) Available Commitment and (b) $5,000,000.00 and to be used by the Borrower for cash management purposes, the obligations under which are evidenced by the
Autoborrow Service Agreement. 
 “Fourth Amendment Effective Date” means
February 22, 2011. 
 2.2        Section 1.01 of
the Credit Agreement, “Defined Terms,” is hereby amended by deleting each of the defined terms of “Adjusted EBITDA”, “Aggregate Commitments”, “Applicable Rate”, “Base Rate”,
“Commitment”, “Interest Payment Date”, “Loan”, “Loan Documents”, “Maturity Date”, “Outstanding Amount” and “Request for Credit Extension” and replacing each, respectively, with
the following: 
 “Adjusted EBITDA” means Net Income, less income or plus
losses from discontinued operations and extraordinary items, plus income taxes, plus interest expense, plus depreciation, depletion, and amortization, plus non-cash stock-based compensation expenses and plus, to the extent deducted from Net Income
in determining Adjusted EBITDA: (i) to the extent not in excess of $5,000,000 in the aggregate within any 12 month period, acquisition-related transaction costs and expenses, (ii) gains or losses on asset dispositions and (iii) other
non-operating income or expenses. 
 “Aggregate Commitments” means the
Commitments of all Lenders in an aggregate principal amount of up to Seventy-Five Million Dollars ($75,000,000). 
 “Applicable Rate” means, at any date, (a) with respect to Eurodollar Rate Loans and Letters of Credit, a percentage per annum equal to 1.75%; (b) with respect to Loans bearing
interest determined by reference to the Base Rate, a percentage per annum equal 

  
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to 0.75%; and (c) with respect to borrowings under the Cash Management Line of Credit, a percentage per annum equal to 1.75% 

“Base Rate” means for any day a fluctuating rate per annum equal to the highest of
(a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its “prime rate,” and (c) the Eurodollar Base Rate calculated for each
such day based on an Interest Period of one month determined two (2) Business Days prior to such day plus 1.00%. The “prime rate” is a rate set by Bank of America based upon various factors including Bank of America’s costs and
desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in such prime rate announced by Bank of America shall
take effect at the opening of business on the day specified in the public announcement of such change. 
 “Commitment” means, as to each Lender, its obligation to (a) make Committed Loans to Borrower pursuant to Section 2.01, (b) purchase participations in L/C
Obligations and (c) make extensions of credit to Borrower under the Cash Management Line of Credit (if applicable), in an aggregate principal amount at any one time outstanding not to exceed the amount set forth opposite such Lender’s name
on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement. 

“Interest Payment Date” means, (a) as to any Eurodollar Rate Loan, the last day of
each Interest Period applicable to such Loan and the Maturity Date; provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds one month, the respective dates that fall on each monthly anniversary after the
beginning of such Interest Period shall also be Interest Payment Dates; (b) as to any Base Rate Loan the last Business Day of each calendar month and the Maturity Date; and (c) as to any borrowing under the Cash Management Line of Credit,
as specified in the Autoborrow Service Agreement and on the Maturity Date. 

“Loan” means an extension of credit by a Lender to Borrower under Article II in the form
of a Committed Loan or an extension of credit to Borrower under the Cash Management Line of Credit. 
 “Loan Documents” means this Agreement, each Issuer Document, each Collateral Document, the Guaranties, the Autoborrow Service Agreement and any other agreement, instrument, and other
document executed and delivered pursuant hereto or thereto or otherwise evidencing the Loans or any other Obligations. 
 “Maturity Date” means with respect to all Obligations, February 22, 2016 or such earlier date as payment of the remaining outstanding principal amount of the Loans or of all
remaining and outstanding Obligations shall be due (whether by acceleration or otherwise). 

“Outstanding Amount” means, on any date, (i) with respect to Committed Loans on any
date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or repayments of Committed Loans occurring on such date; (ii) with respect to any L/C Obligations on any date, the amount of such L/C
Obligations 

  
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on such date after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of
any reimbursements by Borrower of Unreimbursed Amounts; and (iii) with respect to the Cash Management Line of Credit on any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings and prepayments or
repayments under the Cash Management Line of Credit occurring on such date. 

“Permitted Acquisition” means any Acquisition that satisfies the following conditions,
each in form and substance reasonably satisfactory to the Agent: 

(a)        the aggregate consideration (including Indebtedness
assumed) of such Acquisition, together with all other Acquisitions consummated after the Fourth Amendment Effective Date, shall not exceed (i) $12,500,000 in any fiscal year, and (ii) $40,000,000 during the remaining term of the Agreement;

 (b)        for all Acquisitions during any period:

 (i)        in the case of an Acquisition of Equity Interests,
(A) the board of directors (or other comparable governing body) of such other Person(s) shall have approved the Acquisition, and (B) the aggregate Adjusted EBITDA of all such other Person(s) acquired after the Fourth Amendment Effective
Date shall not be less than negative $5,000,000 for the trailing twelve-month period preceding the date of each such Acquisition; and 
 (ii)        (A) no Default or Event of Default shall exist and be continuing immediately before or immediately after giving effect thereto, (B) the Parent
and its Subsidiaries shall be in compliance with the financial covenants hereunder after giving effect to the Acquisition (and the assumption of any Indebtedness in connection therewith) on a pro forma basis, and (C) at least twenty
(20) Business Days prior to the consummation of such Acquisition, a Responsible Officer of the Parent shall provide a compliance certificate, in form and substance satisfactory to the Agent, affirming compliance with each of the items set forth
in clauses (A) through (C) hereof (as applicable). 
 “Request
for Credit Extension” means, (a) with respect to a Committed Borrowing, conversion or continuation of Committed Loans, a Committed Loan Notice, (b) with respect to an L/C Credit Extension, a L/C Application and (c) with
respect to a borrowing under the Cash Management Line of Credit, an automatic transfer of funds under the Cash Management Line of Credit to the deposit account of the Borrower pursuant to the Autoborrow Service Agreement. 

2.3        Section 2.01 of the Credit Agreement is hereby amended by
deleting clause (ii) in its entirety and replacing it with the following: 
 “(ii) the aggregate
Outstanding Amount of the Loans of any Lender plus such Lender’s Applicable Percentage of the Outstanding Amount of all L/C Obligations shall not exceed such Lender’s Commitment.” 

  
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2.4        Section 2.06 of the Credit Agreement is hereby
amended by deleting clause (a) of the proviso in its entirety and replacing it with the following: 
 “(a) the aggregate of all such net cash proceeds in any fiscal year is less than $2,500,000, or ” 
 2.5         Section 2.07(a) of the Credit Agreement is hereby amended by deleting such section in its entirety and replacing it with the
following: 
 “(a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate
Loan shall bear interest on the outstanding principal amount thereof for each Interest Period at a rate per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate; and (ii) each Base Rate Committed Loan
shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the Applicable Rate; and (iii) each borrowing under the Cash Management Line of Credit
shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the BBA LIBOR Daily Floating Rate plus the Applicable Rate.” 

2.6        Section 2.08 of the Credit Agreement is hereby
amended by deleting such section in its entirety and replacing it with the following: 

“2.08 Fees. Borrower shall pay to Agent for the account of each Lender in accordance with its
Applicable Percentage, a commitment fee equal to 0.40% per annum calculated on the Available Commitment. The commitment fee shall accrue at all times during the Availability Period, including at any time during which one or more of the
conditions in Article IV are not met, and shall be due and payable quarterly in arrears on the last Business Day of each quarter, commencing with the first such date to occur after the Closing Date, and on the Maturity Date. The commitment
fee shall be calculated quarterly in arrears (based upon the average daily Available Commitment during such quarter).” 
 2.7        Section 4.02 of the Credit Agreement is hereby amended by deleting the first sentence of such section in its entirety and replacing it
with the following: 
 “The obligation of the L/C Issuer and each Lender to honor any Request for Credit
Extension is subject to the following conditions precedent (except with respect to a Request for Credit Extension for a borrowing under the Cash Management Line of Credit, in which case only subsections 4.02(a) and 4.02(b) hereunder and the
conditions precedent set forth in the Autoborrow Service Agreement shall apply):” 

2.8        Section 6.12(a) of the Credit
Agreement is hereby amended by deleting such subsection in its entirety and replacing it with the following: 
 “(a) Minimum Adjusted EBITDA. The Parent and its Subsidiaries, on a consolidated basis, will be required to maintain a minimum Adjusted EBITDA which will be measured quarterly on a
rolling four quarter basis as follows: 
  

			
	 Each
Quarter Ending During the Period
	  	 Minimum TTM
 Adjusted EBITDA

	 January 1, 2010 through December 31, 2010
	  	      $53 million        

  
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	 January 1, 2011 through December 31, 2011
	  	      $55 million        

	 	 
	 January 1, 2012 through December 31, 2012
	  	      $57 million        

	 	 
	 January 1, 2013 through December 31, 2013
	  	      $65 million        

	 	 
	 January 1, 2014 through December 31, 2014
	  	      $75 million        

	 	 
	 January 1, 2015 through Maturity
Date
	  	      $85 million   
     

2.9        Section 6.12(c) of the Credit Agreement is hereby
amended by deleting such subsection in its entirety and replacing it with the following: 

“(c)        Maximum Capital Expenditures. The
Parent, together with its Subsidiaries on a consolidated basis, shall not spend or incur obligations (including the total amount of any Capital Leases entered into in any fiscal year) to acquire fixed assets for more than the amounts specified below
for each fiscal year ending on the date specified below: 
  

			
	For the Year Ending	  	Maximum Capital
Expenditures
	 	 
	 December 31, 2010
	  	$70 million
	 	 
	 December 31, 2011
	  	$92 million
	 	 
	 December 31, 2012
	  	$94 million
	 	 
	 December 31, 2013
	  	$98 million
	 	 
	 December 31, 2014
	  	$101 million
	 	 
	
December 31, 2015 and
each year thereafter
	  	$106 million

Such portion of permitted capital expenditures not spent in the applicable year may be carried forward to the subsequent
year, provided that such carried forward amount shall be deemed the first amounts spent in such year.” 

2.10      Section 7.03 of the Credit Agreement is hereby amended by
deleting subsection (j) in its entirety and replacing it with the following: 

“(j)        other secured and unsecured Indebtedness in an
aggregate amount not to exceed $2,500,000 at any one time.” 

2.11      Section 8.01(e) of the Credit Agreement is hereby amended by
deleting the amount of $1,000,000.00 in clause (i) and replacing such amount with $2,000,000. 

2.12      Schedules 1, 2.01, 5.06, 5.09, 5.13, 5.19, 5.26, 7.01, 7.03 and 10.02 to
the Credit Agreement are hereby amended by deleting each such schedule in its entirety and replacing it with the Schedules 1, 2.01, 5.06, 5.09, 5.13, 5.19, 5.26, 7.01, 7.03 and 10.02 attached hereto, and references in

  
 -7-

 
Sections 5.13 and 5.19 of the Credit Agreement to the “Closing Date” and references in Sections 7.01(b) and 7.03(b) to “the date hereof” shall be deemed to be amended to refer
to the Fourth Amendment Effective Date. 

2.13        Section 5(h) of the Security Agreement is hereby amended
by adding the following at the end of such section: 

“(h)        Control. Maintain its primary depositary
relationships with Bank of America, N.A and execute and deliver all agreements, assignments, instruments or other documents as the Administrative Agent shall reasonably request for the purpose of obtaining and maintaining control within the meaning
of the UCC with respect to any Collateral consisting of Deposit Accounts, Investment Property, Letter-of-Credit Rights and Electronic Chattel Paper. Notwithstanding the foregoing, account control agreements shall not be required for Deposit Accounts
established by the Grantors with institutions other than Bank of America, N.A., so long as the aggregate outstanding balance of funds on deposit in all such Deposit Accounts for all Grantors combined does not exceed $50,000 at any time (excluding
amounts maintained in such Deposit Accounts from which cash is automatically transferred to a Deposit Account maintained with Bank of America, N.A. on a daily basis)” 

3.        No Other Modification. Notwithstanding the agreement of the
Agent and Lender to the terms and provisions of this Amendment, the Loan Parties acknowledge and expressly agree that the amendments contained in Section 2, are limited to the extent expressly set forth herein and shall not constitute a
modification of the Credit Agreement or any other Loan Documents or a course of dealing at variance with the terms of the Credit Agreement or any other Loan Documents (other than as expressly set forth above) so as to require further notice by the
Agent or the Lender, or any of them, of its or their intent to require strict adherence to the terms of the Credit Agreement and the other Loan Documents in the future. All of the terms, conditions, provisions and covenants of the Credit Agreement
and the other Loan Documents shall remain unaltered and in full force and effect except as expressly modified by this Amendment. The Credit Agreement and each other Loan Document shall be deemed modified hereby solely to the extent necessary to give
effect to this Amendment. 
 4.        Representations and
Warranties. The Borrower and each other Loan Party hereby represent and warrant to and in favor of the Agent as follows: 
 (a)        each representation and warranty set forth in Article V of the Credit Agreement, after giving effect to this Amendment, is hereby restated and affirmed
as true and correct in all material respects as of the date hereof, except to the extent (i) previously fulfilled in accordance with the terms of the Credit Agreement or (ii) relating specifically to the Closing Date or otherwise
inapplicable; 
 (b)        the Borrower and each other Loan Party has
the power and authority (i) to enter into this Amendment, and (ii) to do all acts and things as are required or contemplated hereunder to be done, observed and performed by it; 

(c)        this Amendment has been duly authorized, validly executed and
delivered by one or more Responsible Officers of the Loan Parties, and constitutes the legal, valid and binding obligations of the Loan Parties, enforceable against the Loan Parties in accordance with its terms, subject, as to enforcement of
remedies, to the following qualifications: (i) an order of specific performance and an injunction are discretionary remedies and, in particular, may not be available where damages are considered an adequate remedy at law, and
(ii) enforcement may be limited by bankruptcy, insolvency, liquidation, reorganization, reconstruction and other similar laws affecting enforcement of creditors’ rights 

  
 -8-

 
generally (insofar as any such law relates to the bankruptcy, insolvency or similar event of any of the Loan Parties); 

(d)        the execution and delivery of this Amendment and performance by the
Loan Parties under the Credit Agreement, as amended hereby, does not and will not require the consent or approval of any regulatory authority or governmental authority or agency having jurisdiction over the Loan Parties which has not already been
obtained, nor be in contravention of or in conflict with the organizational documents of the Loan Parties, or any provision of (i) any statute, judgment or order, or (ii) any material indenture, instrument, agreement, or undertaking, to
which the Loan Parties are party or by which the Loan Parties’ assets or properties are bound; and 

(e)        no Default exists both before and after giving effect to this
Amendment, and there has been no Material Adverse Effect both before and after giving effect to this Amendment. 

5.        Conditions Precedent to Effectiveness of Amendment. The
effectiveness of this Amendment is subject to Agent’s receipt of each of the following, each in form and substance satisfactory to Agent: 
 (a)        the Loan Parties’ executed signature page(s) to this Amendment; 

(b)        a Second Amended and Restated Note executed by Borrower in favor of
Lender in the principal amount of $75,000,000; 
 (c)        such
certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of each Loan Party as Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof
authorized to act as a Responsible Officer in connection with this Amendment, the Agreement and the other Loan Documents to which such Loan Party is a party; 
 (d)        such documents and certifications as Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party
is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its business requires such qualification, except to the extent that failure to do
so could not reasonably be expected to have a Material Adverse Effect; 

(e)        a favorable opinion of Friedman Kaplan Seiler & Adelman LLP,
counsel to the Loan Parties, addressed to Agent and each Lender concerning the Loan Parties and the Loan Documents; 
 (f)        a certificate of a Responsible Officer of each Loan Party either (i) attaching copies of all consents, licenses and approvals required in connection
with the execution, delivery and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party, and such consents, licenses and approvals shall be in full force and effect, or (ii) stating
that no such consents, licenses or approvals are so required; 

(g)        a certificate signed by a Responsible Officer of Borrower certifying
(i) that the conditions specified in Sections 4.02(a) and (b) of the Agreement and this Amendment have been satisfied, and (ii) that there has been no event or circumstance since December 31, 2009 that has had or
could be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect; 

  
 -9-

 (h)        evidence that all
insurance required to be maintained pursuant to the Loan Documents has been obtained and remains in effect; 

(i)        evidence that the Liens in favor of Agent are valid, enforceable,
properly perfected in a manner acceptable to Agent and prior to all others’ rights and interests, except those Agent consents to in writing; 
 (j)        three years projected financials for the Loan Parties on a consolidated and consolidating basis (to include an income statement for the fiscal years
ending 2011, 2012, and 2013); 
 (k)        a Reaffirmation Agreement,
duly executed and delivered by each Loan Party in favor of Agent and Lenders; 

(l)        a joinder agreement, duly executed and delivered by Aretta in favor of
Agent and Lenders; 
 (m)        an Autoborrow Service Agreement, duly
executed and delivered by the Borrower and Bank of America, N.A.; 

(n)        certificates representing 100% of the Equity Interests of Aretta
accompanied by duly executed instruments of transfer or assignment in blank; 

(o)        payment of all fees and expenses described in that certain Second
Amended and Restated Agreement Regarding Fees dated as of the date hereof between Borrower and Agent in immediately available funds; 
 (p)        such joinder agreements, security agreements, pledge agreements, updated schedules thereof and other documentation, as the Agent may require, duly
executed and completed; 
 (q)        a Notice of Grant of Security
Interest in Trademarks, (ii) a Notice of Grant of Security Interest in Patents and (iii) a Notice of Grant of Security Interest in Copyrights, duly executed, completed and delivered by the applicable Loan Parties with respect to the
trademarks, trademark applications, copyrights, patents and patent applications acquired pursuant to the Aretta Stock Purchase and the Maximum Asset Purchase; 
 (r)        such agreements, assignments, instruments or other documents as Agent shall reasonably request for the purpose of obtaining and maintaining control
within the meaning of the UCC with respect to any Collateral consisting of Deposit Accounts, Investment Property, Letter-of-Credit Rights and Electronic Chattel Paper; 

(s)        a certificate of a Responsible Officer of such Loan Party, either
(i) attaching copies of all consents, licenses and approvals required in connection with the execution, delivery and performance by such Loan Party and the validity against such Loan Party of the Loan Documents to which it is a party and the
transactions contemplated in connection with the Aretta Consent and the Maximum Consent, and such consents, licenses and approvals shall be in full force and effect, or (ii) stating that no such consents, licenses or approvals are so required;

 (t)        evidence, including, but not limited to, UCC-3 termination
statements filed in connection with the Maximum Asset Purchase and the Aretta Stock Purchase, that the Liens in favor of Agent are valid, enforceable, properly perfected in a manner acceptable to Agent and prior to all others’ rights and
interests, except those Agent consents to in writing; 

  
 -10-

 (u)        evidence that Borrower
and each other Loan Party maintains its primary depositary relationships with Bank of America, N.A; and 

(v)        such other assurances, certificates, documents, consents or opinions
as Agent or Lenders reasonably may require. 
 6.        Effect of
Amendment; No Novation. Except as expressly set forth herein, the Credit Agreement shall remain in full force and effect and shall constitute the legal, valid, binding and enforceable obligation of the Loan Parties to the Agent and Lender, and
the Loan Parties hereby restate, ratify and reaffirm each and every term and condition set forth in the Credit Agreement, as amended hereby. The terms of this Amendment are not intended to and do not serve as a novation as to the Credit Agreement or
the Note or the indebtedness evidenced thereby. The parties hereto expressly do not intend to extinguish any debt or security interest created pursuant to the Credit Agreement or any document executed in connection therewith. Instead it is the
express intention to affirm the Credit Agreement and the security created thereby. 

7.        Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same instrument.
Delivery of an executed signature page of this Amendment by facsimile transmission or electronic transmission shall be as effective as delivery of a manually executed counterpart hereof. 

8.        Successors and Assigns. This Amendment shall be binding upon and
inure to the benefit of the successors and permitted assigns of the parties hereto. 

9.        GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. 
 10.        Waiver, Release and Disclaimer. To induce the Lender and the Agent to enter into this Amendment, the Loan Parties hereby waive and release any
claim, defense, demand, action or suit of any kind or nature whatsoever against the Lender or the Agent arising on or prior to the date of this Amendment in connection with the Credit Agreement or any of the other Loan Documents, or any of the
transactions contemplated thereunder, except that this Section 10 shall not waive or release any of the Lender’s or the Agent’s contractual obligations under the Credit Agreement or any of the other Loan Documents. 

[Remainder of This Page Intentionally Left Blank] 

  
 -11-

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment
as of the day and year first above written. 
  

									
	 BORROWER:
	 		 		 	 CBEYOND COMMUNICATIONS, LLC,
 a Delaware limited liability company

					
		 		 		 	 By:
	 	 /s/ James F. Geiger

		 		 		 	 Name:
	 	 James F. Geiger

		 		 		 	 Title:
	 	 Chief Executive Officer

							
	 ADDITIONAL LOAN PARTIES:
	 		 	 CBEYOND, INC.,
 a Delaware corporation

				
		 		 	 By:
	 	 /s/ James F. Geiger

		 		 	 Name:
	 	 James F. Geiger

		 		 	 Title:
	 	 Chief Executive Officer

			
		 		 	ARETTA COMMUNICATIONS, INC.,
		 		 	 a Delaware corporation

				
		 		 	 By:
	 	 /s/ Michael A. Rand

		 		 	 Name:
	 	 Michael A. Rand

		 		 	 Title:
	 	 Chief Executive Officer

					
	 AGENT AND LENDER:
	 	BANK OF AMERICA, N.A.
			
		 	 By:
	 	 /s/ Thomas M. Paulk

		 	 Name:
	 	 Thomas M. Paulk

		 	 Title:
	 	 Senior Vice President

  

 SCHEDULE 1 
 Certain Parent Shareholders 
 VantagePoint Venture Partners and its Affiliates
VantagePoint Venture Partners III(Q), LP; VantagePoint Venture Partners III, LP; VantagePoint Venture Partners IV(Q), LP; VantagePoint Ventures Partners IV, LP; and VantagePoint Venture Partners IV Principals Fund, LP. VantagePoint Venture Partners
III(Q), LP, VantagePoint Venture Partners III, LP, VantagePoint Venture Partners IV(Q), LP, VantagePoint Ventures Partners IV, LP and Venture Partners IV Principals Fund, LP are part of an affiliated group of investment partnerships commonly
controlled by VantagePoint Venture Partners. 

 SCHEDULE 2.01 
 Commitments 
  

					
	Lender	 	Lender’s Commitment	 	Percentage
	  

Bank of America, N.A.

 
	 	
$75,000,000.00
  
	 	 100%
  

 SCHEDULE 5.06 
 Litigation 
 NONE 

 SCHEDULE 5.09 
 Environmental Matters 
 NONE 

 SCHEDULE 5.13 
 Subsidiaries and Other Equity Investments 
  

					
	NAME	  	STATE (DATE OF FORMATION)	  	FEIN
	 Cbeyond, Inc.
	  	Delaware (3/22/2000)	  	59-3636526
	 Cbeyond Communications,
LLC
	  	Delaware (10/22/1999)	  	59-3608337
	 Aretta Communications,
Inc.
	  	Delaware (5/2/2006)	  	20-4851512

* The entity represented by FEIN 59-3636526 changed the name from “Cbeyond Communications, Inc.” to “Cbeyond, Inc.” in
June 2006. 
 All of the above entities have as their principal place of business the offices located at 320
Interstate North Parkway; Suite 300; Atlanta, GA 30339. 

 SCHEDULE 5.19 
 Leases 
 The Borrower has entered into operating leases as lessee with respect to
the following real properties: 
 Company Headquarters: 
 (1)  320 Interstate North Parkway; Atlanta, GA 

          - Suites 100, 200, 300, 400, 495, 500, 501, 550 

(2)  340 Interstate North Parkway; Suites 100, 150, 155, 160, 440, 450, 460, 470; Atlanta, GA 

(3)  360 Interstate North Parkway; Suite 200, Atlanta, GA 
 Atlanta Branches & Data Centers: 
 (4)  360
Interstate North Parkway; Suite 600; Atlanta, GA 
 (5)  56 Marietta Street NW; Atlanta, GA 

(6)  1140 Hammond Drive; Atlanta, GA 
 (7)  6620 Bay Circle, Norcross, GA (Bay Colony) 
 Dallas Branches & Data
Centers: 
 (8)  Heritage Square I, Suite 900; Dallas, TX 

(9)  Heritage Square I, Suite 230; Dallas, TX 
 (10)  1950 Stemmons Freeway; Dallas, TX 
 (11)  5601 Bridge
Street, Suite 450, Ft Worth, TX 
 Denver Branches & Data Centers: 

(12)  1500 Champa; Suite B-300; Denver, CO 
 (13)  3131 S. Vaughn Way; Suite 400; Aurora (Cherry Creek), CO 

(14)  544 Mark Dabling Blvd, Colorado Springs, CO 
 (15)  1715 Ironhorse Dr, Longmont, CO 
 (16)  360 Inverness
Drive, Englewood CO 
 Houston Branches: 
 (17)  One Riverway; Suite 200; Houston, TX 
 Chicago Branches: 

(18)  1520 Kensington Rd.; Suite 300; Oakbrook and Oakbrook Expansion; Chicago, IL 

Los Angeles Branches: 
 (19)  879 W. 190th Street; Suite 1200; Los Angeles, CA 
 (20)  2400 East Katella Ave,
Anaheim, CA (Stadium Towers) 
 San Diego Branches: 
 (21)  6256 Greenwich Drive; Suite 400, 410 Governor Executive Centre; San Diego, CA 

Detroit Branches: 

	(22)  27555	 Farmington Road; Suite 100 Citiplace Center; Farmington Hills, MI 

 Bay Area Branches: 
 (23)   2055 Laurelwood Road, Suite
200, Santa Clara, CA 

 
(24)  2033 N. Main Street, Suite 500, Walnut Creek, CA 
 Miami Branches:

 (25)  3601 SW 160th Avenue, Suite 400, Miramar, FL 
 Minneapolis Branches: 
 (26)  7900
78th Street West, Suite 350 & 8000 78th Street West, Edina, MN 

Washington DC Branches: 
 (27)  11107 Sunset Hills Rd., Suite 100, Reston, VA 
 Seattle Branches:

 (28)  3545 Factoria Blvd., Suite 200, Bellevue, WA 
 Boston Branch: 
 (29)  1 Burlington Woods Drive, Suite 310,
Burlington, MA 
 Cbeyond Leased Collos (former Aretta Collos): 

(30)  55 Marietta Street NW, Atlanta, GA 
 (31)  4495 E Sahara Ave., Las Vegas, NV 
 (32)  835 Oak Creek
Dr., Lombard, IL 
 Kentucky Branch (former MaximumASP DC): 

(33)  2080 Nelson Miller Parkway, 1st Floor, Louisville, KY 
 (34)  1808 Swift Drive, Building C, Oak Brook, IL 60523 
 The Borrower
has entered into the following capital leases as lessee: 
 NONE 

 SCHEDULE 5.26 
 Labor Disputes; Acts of God 
 NONE 

 SCHEDULE 7.01 
 Existing Liens 
 Certain office equipment (such as copiers) and furniture are
leased. 

 SCHEDULE 7.03 
 Existing Indebtedness 
 NONE 

 SCHEDULE 10.02 
 Administrative Agent’s Office, Certain Addresses for Notice 
 If to AGENT or
LENDER: 
 Bank of America, N.A. 
 600 Peachtree Street 
 GA1-006-13-15 

Atlanta, GA 30308 

Attention: Thomas M. Paulk 
 Fax: 404-607-6343 
 Email: ##### 

If to Borrower or any other Loan Party: 
 Cbeyond Communications, LLC 
 320 Interstate North Parkway 

Suite 300 

Atlanta, GA 30339 

Attention: J. Robert Fugate, CFO and Kurt Abkemeier, VP Finance and Treasurer 

Fax: 678-424-2501 

Email: #####

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