Document:

Amendment No. 3 to Revolving/Term Credit and Security Agreement

  
 Exhibit 10.1

  

	***	Confidential treatment has been requested as to certain portions of this agreement. Such omitted confidential information has been designated by an asterisk and has been filed
separately with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended, and the Commission’s rules and regulations promulgated under the Freedom of Information Act, pursuant to a
request for confidential treatment.*** 

  
 AMENDMENT NO. 3 TO 
 REVOLVING/TERM CREDIT AND SECURITY AGREEMENT 
  
 THIS AMENDMENT NO. 3 TO REVOLVING/TERM CREDIT AND SECURITY AGREEMENT
(this “Amendment”), dated as of October 3, 2005, is entered into by and among the financial institutions listed on the signature pages hereof (individually, a “Lender” and collectively, the “Lenders”), UNION BANK
OF CALIFORNIA, N.A., as Administrative Agent, BROWN BROTHERS HARRIMAN & CO., as Collateral Agent, and SERACARE LIFE SCIENCES, INC., a California corporation (the “Borrower”), with reference to the following facts: 
  
 RECITALS 
  
 A. The Borrower, the Lenders, the Administrative Agent and the Collateral Agent are parties to the Revolving/Term Credit and
Security Agreement, dated as of September 14, 2004, as amended (collectively, the “Credit Agreement”), pursuant to which the Lenders have provided the Borrower with a revolving loan, a term loan and a letter of credit facility.

  
 B. The Borrower the Lenders, the Administrative Agent and the
Collateral Agent wish to amend the Credit Agreement to increase the Aggregate Revolving Loan Commitment by $15,000,000, from $10,000,000 to $25,000,000, to add a swing line facility in the amount of $2,000,000, and to make certain other
modifications, all as set forth below. 
  
 NOW, THEREFORE, the
parties hereby agree as follows: 
  
 1. Defined Terms. Any
and all initially-capitalized terms used in this Amendment (including, without limitation, in the recitals hereto) without definition shall have the respective meanings specified in the Credit Agreement. 
  
 2. Increase in Revolving Credit Facility. 
  
 A. Amendment to Definition of “Aggregate Revolving Loan
Commitment”. Section 1.1 of the Credit Agreement is hereby amended such that the definition of “Aggregate Revolving Loan Commitment” shall read in full as follows: 
  
 “‘Aggregate Revolving Loan
Commitment’: The sum of the Revolving Loan Commitments set forth on the signature pages hereof, which is, as of the effective date of the Third Amendment, US $25,000,000.” 
  

 -1- 

 B. Addition of Definition of Third Amendment. Section 1.1 of the Credit Agreement is
hereby further amended and supplemented by adding therein a new definition of “Third Amendment” as follows: 
  
 “‘Third Amendment’ means Amendment No. 3 to Revolving/Term Credit and Security Agreement, dated as of
October 3, 2005, by and among the Borrower, the Lenders, the Administrative Agent and the Collateral Agent.” 
  
 3. Addition of Swing Line Facility. 
  
 A. Addition of Swing Line-Related Definitions. Section 1.1 of the Credit Agreement is hereby amended and supplemented by adding the
following new definitions therein: 
  
 “Swing Line” means the revolving line of credit established by the Swing Line Lender in favor of the Borrower pursuant to Section 2.1A. 
  
 “Swing Line Commitment” means an amount equal to the lesser of (i) $2,000,000 or
(ii) the then applicable Available Revolving Loan Commitment. 
  
 “Swing Line Lender” means UBOC or any successor swing line lender hereunder. 
  
 “Swing Line Loan” means a loan which bears interest at a rate per annum equal to interest payable on Prime Rate Loan and
made by the Swing Line Lender to the Borrower under the Swing Line. 
  
 “Swing Line Note” means the promissory note made by the Borrower to the Swing Line Lender, substantially in the form of Exhibit L, either as originally executed or as the same may from time to
time be supplemented, modified, amended, renewed, extended or supplanted. 
  
 “Swing Line Outstandings” means, as of any date of determination, the aggregate principal amount of Swing Line Loans then outstanding. 
  
 B. Amendment to Revolving Loan Provision to Incorporate Swing Line Loan. Section 2.1(a) of the Credit
Agreement is hereby amended to read in full as follows: 
  
 “(a) Subject to the terms and conditions hereof, each Lender shall, pro rata, according to such Lender’s pro rata share of the then applicable Aggregate Revolving Loan Commitment, (i) make loans on a
revolving credit basis to the Borrower from time to time from and including the Closing Date to but excluding the Maturity Date (each a ‘Revolving Loan’, and collectively, the ‘Revolving Loans’) in accordance with
the terms of this Agreement and (ii) issue Letters of Credit for the account of the Borrower pursuant to Section 2.2 below from time to time from and including the Closing Date to but excluding the Maturity Date; provided,
however, that (A) the sum of (1) the aggregate principal amount of all Revolving Loans outstanding, (2) the aggregate principal amount of all Swing Line Loans outstanding, (3) the aggregate Letter of Credit Amount of all

  

 -2- 

 
Letters of Credit outstanding and (4) the aggregate amount of unreimbursed drawings under all Letters of Credit shall not exceed the lesser of
(x) the Aggregate Revolving Loan Commitment or (y) the Borrowing Base at any time and (B) the sum of (1) the aggregate Letter of Credit Amount of all Letters of Credit outstanding and (2) the aggregate amount of unreimbursed
drawings under all Letters of Credit shall not exceed $1,000,000 at any time. Within the limits of each Lender’s Revolving Loan Commitment and the Borrowing Base, the Borrower may borrow, have Letters of Credit issued for the Borrower’s
account, prepay Revolving Loans, reborrow Revolving Loans, and have additional Letters of Credit issued for the Borrower’s account after the expiration of previously issued Letters of Credit.” 
  
 C. Addition of Swing Line Provisions. Section 2 of the
Credit Agreement is hereby amended and supplemented by adding therein: 
  
 “2.1A Swing Line 
  
 (a) The Swing
Line Lender shall from time to time prior to the Maturity Date make Swing Line Loans to the Borrower in such amounts as the Borrower may request; provided, however, that (i) after giving effect to such Swing Line Loan, the
Swing Line Outstandings shall not exceed the Swing Line Commitment, and (ii) without the consent of the Lenders and the Swing Line Lender, no Swing Line Loan shall be made during the continuation of an Event of Default. Unless notified to the
contrary by the Swing Line Bank, advances under the Swing Line may be made in amounts of at least $100,000 and integral multiples of $25,000 in excess thereof. Each request by the Borrower for a Swing Line Loan shall be made pursuant to a Loan
Request (or telephonic request for Loan promptly confirmed by telecopier) received by the Administrative Agent, at the Administrative Agent’s office, not later than 9:00 a.m., California time, on the date (which must be a Business Day) such
Swing Line Loan is to be made. Each repayment of a Swing Line Loan shall be in an amount which is an integral multiple of $25,000 or the remaining outstanding principal amount of Swing Line Loans. 
  
 (b) The Swing Line Loans shall bear interest at a
fluctuating rate per annum equal to the rate of interest payable on Prime Rate Loans payable on such dates, not more frequently than monthly, as may be specified by the Swing Line Lender and in any event on the Maturity Date. Interest on Swing Line
Loans shall be payable upon demand of the Swing Line Lender, and the Swing Line Lender shall be responsible for invoicing the Borrower for such interest. The interest payable on Swing Line Loans is solely for the account of the Swing Line Lender.

  
 (c) The principal amount of the Swing Line
Loans shall be payable not later than three (3) days following demand made by the Swing Line Lender and in any event on the Maturity Date. 
  
 (d) Upon the making of each Swing Line Loan by the Swing Line Lender, each Lender shall be deemed to have purchased from the Swing Line
Bank a participation therein in an amount equal to that Lender’s Pro Rata 

  

 -3- 

 
Share of the then applicable Aggregate Revolving Loan Commitment times the amount of the Swing Line Loan. Upon demand by the Administrative Agent,
including any such demand made following the occurrence of an Event of Default, each Lender promptly shall provide to the Swing Line Lender such Lender’s participation amount of any such Swing Line Loan as computed in accordance with the
preceding sentence. The obligation of each Lender so to provide its purchase price to the Swing Line Lender shall be absolute and unconditional and shall not be affected by the occurrence of an Event of Default or any other occurrence or
event.” 
  
 4. Amendments to Financial Covenants.
Section 7.1 of the Credit Agreement is hereby amended to read in full as follows: 
  
 “7.1 Financial Condition Covenants. The Borrower shall not: 
  
 (a) Effective Tangible Net Worth. Permit Effective Tangible Net Worth, as of the end of any fiscal
quarter of the Borrower, to be less than (i) $50,000,000, plus (ii) on a cumulative basis, on the date the Administrative Agent receives (or should have received) the financial statements referred to in Section 5.1(b) with
respect to any quarter (beginning with such statements delivered for the fiscal quarter ended September 30, 2005), 75% of the Net Income of the Borrower and the Subsidiaries (disregarding any loss) in such fiscal quarter, plus
(iii) on a cumulative basis, 100% of the Net Issuance Proceeds of any Equity Offering consummated by the Borrower or any Subsidiary during such fiscal quarter, minus (iv) 100% of goodwill or other intangible assets that result from
a Permitted Acquisition. 
  
 (b) Senior
Leverage Ratio. Permit the Senior Leverage Ratio, as of the end of any fiscal quarter of the Borrower, to be greater than the correlative ratio indicated below for such fiscal quarter: 
  

			
	 Fiscal Quarter Ending

	  	Maximum Senior Leverage Ratio

	 September 30, 2005
	  	1.60:1
		
	 December 31, 2005
	  	1.60:1
		
	 March 31, 2006
	  	1.60:1
		
	 June 30, 2006
	  	1.60:1
		
	 September 30, 2006
	  	1.25:1
		
	 December 31, 2006
	  	1.25:1
		
	 March 31, 2007
	  	1.25:1
		
	 June 30, 2007
	  	1.25:1
		
	 September 30, 2007 and as of the last day of each fiscal quarter thereafter
	  	1.00:1

  

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 (c) Total Leverage Ratio. Permit the Total Leverage Ratio, as of the end of any
fiscal quarter of the Borrower, to be greater than the correlative ratio indicated below for such fiscal quarter: 
  

			
	 Fiscal Quarter Ending

	  	Maximum Total Leverage Ratio

	 September 30, 2005
	  	1.75:1
	 December 31, 2005
	  	1.75:1
	 March 31, 2006
	  	1.75:1
	 June 30, 2006
	  	1.75:1
	 September 30, 2006
	  	1.50:1
	 December 31, 2006
	  	1.50:1
	 March 31, 2007
	  	1.50:1
	 June 30, 2007
	  	1.50:1
	 September 30, 2007 and as of the last day of each fiscal quarter thereafter
	  	1.00:1

  
 (d)
Fixed Charge Coverage Ratio. Permit the Fixed Charge Coverage Ratio, as of the end of any fiscal quarter of the Borrower, to be less than the correlative amount indicated below for such fiscal quarter: 
  

			
	 Fiscal Quarter Ending

	  	Minimum Fixed Charge Coverage Ratio

	 September 30, 2005 and as of the last day of each fiscal quarter thereafter
	  	1.50:1

  

 -5- 

 (e) EBITDA. Permit EBITDA, determined as of the last day of any fiscal quarter of
the Borrower for the immediately preceding twelve-month period then ended, to be less than the correlative amount indicated below for such fiscal quarter: 
  

			
	 Fiscal Quarter Ending

	  	Minimum EBITDA

		
	 September 30, 2005
	  	$*****
		
	 December 31, 2005
	  	$*****
		
	 March 31, 2006
	  	$*****
		
	 June 30, 2006
	  	$*****
		
	 September 30, 2006
	  	$*****
		
	 December 31, 2006
	  	$*****
		
	 March 31, 2007
	  	$*****
		
	 June 30, 2007
	  	$*****
		
	 September 30, 2007
	  	$*****
		
	 December 31, 2007
	  	$*****
		
	 March 31, 2008
	  	$*****
		
	 June 30, 2008
	  	$*****
		
	 September 30, 2008 and as of the last day of each fiscal quarter thereafter
	  	$*****

  
 (f)
Capital Expenditures. Permit Capital Expenditures of the Borrower and its Subsidiaries on a consolidated basis for any fiscal year to be more than $***** (the ‘Maximum Capital Expenditures Amount’); provided
that the Maximum Capital Expenditures Amount for any fiscal year shall be increased by an amount equal to the excess, if any, of the Maximum Capital Expenditures Amount for the previous fiscal year (as adjusted in accordance with this proviso) over
the actual amount of Capital Expenditures for such previous fiscal year.” 
  

 -6- 

 5. Amendment to Acquisitions Covenant. Notwithstanding anything to the contrary set forth in
Section 7.7 of the Credit Agreement or in the definition of “Permitted Acquisitions”, the Borrower, or any of its Domestic Subsidiaries, may make certain Acquisitions without the prior written consent of any Lender, the Administrative
Agent or the Collateral Agent on the terms and conditions set forth in the following sentences of this Section 4. Such Acquisitions shall not involve the payment of total consideration (whether in the form of cash, capital stock or otherwise)
by the Borrower or its applicable Domestic Subsidiary of (i) more than $5,000,000 for any individual Acquisition or for all such Acquisitions in any one fiscal year of the Borrower or (ii) more than $10,000,000 during the entire term of
the Credit Agreement. In addition, for each such Acquisition, (i) the conditions set forth in clauses (a), (b), (d) and (e) of the definition of “Permitted Acquisition” shall be satisfied and (ii) the Borrower shall
provide the Administrative Agent no later than thirty (30) calendar days prior to the date of such Acquisition with pro-forma balance sheets and combining projections (including pro-forma financial covenant ratios) demonstrating that, after
giving effect to such Acquisition, (A) the Borrower would have been in compliance with the financial covenants set forth in Section 7.1 of the Credit Agreement throughout the period of the four (4) fiscal quarters of the Borrower most
recently ended prior to the date of such Acquisition (or shorter period in which the target has been in existence) and (B) the Borrower would remain in compliance with such financial covenants for the period of four (4) fiscal quarters of
the Borrower immediately following the date of such Acquisition. 
  
 6. ABL Audit. The Borrower shall permit the Collateral Agent to complete an audit of the Borrower’s books and records and the Collateral, at the Borrower’s expense, at a time mutually convenient to the Borrower and the
Collateral Agent within ninety (90) days after the effective date of this Agreement. 
  
 7. Amendment Fee. In consideration of the Lenders’ agreement to enter into this Amendment and to provide the Borrower with the accommodations described herein, on the effective date of this Amendment, the
Borrower shall pay to the Administrative Agent, for the ratable benefit of the Lenders, a one-time fee of $75,000 (the “Amendment Fee”). The Borrower acknowledges and agrees that, at the Administrative Agent’s option, the
Administrative Agent may effect payment of the Amendment Fee by charging the full amount of such fee, when due, to the Borrower’s Revolving Loan account. 
  

8. Conditions Precedent. The effectiveness of this Amendment shall be subject to the prior satisfaction of each of the following conditions:

  
 (a) This Amendment. The Administrative
Agent shall have received a copy of this Amendment, duly executed by the Borrower, each Lender and the Collateral Agent; 
  
 (b) Replacement Notes. The Administrative Agent shall have received replacement Revolving Loan Notes, in form and substance
satisfactory to the Lenders, duly executed by the Borrower in favor of each of the Lenders, evidencing the Borrower’s obligations in connection with the Revolving Loan Commitment as increased under this Amendment; 
  

 -7- 

 (c) Swing Line Loan. The Administrative Agent shall have received a Swing Line
Note duly executed by the Borrower in favor of, and in form and substance acceptable to, the Swing Line Lender; and 
  
 (d) Secretary’s Certificate. The Secretary of the Borrower shall have executed the Secretary’s Certificate attached to
the end of this Amendment. 
  
 9. Miscellaneous.

  
 (a) Survival of Representations and
Warranties. All representations and warranties made in the Credit Agreement or in any other document or documents relating thereto, including, without limitation, any Loan Document furnished in connection with this Amendment, shall survive the
execution and delivery of this Amendment and the other Loan Documents, and no investigation by the Administrative Agent or the Lenders or any closing shall affect the representations and warranties or the right of the Administrative Agent or any
Lender to rely thereon. 
  
 (b) No Events of
Default. The Borrower is not aware of any events which now constitute, or with the passage of time or the giving of notice, or both, would constitute, an Event of Default under the Credit Agreement. 
  
 (c) Reference to Credit Agreement. The Credit
Agreement, each of the other Loan Documents, and any and all other agreements, documents or instruments now or hereafter executed and delivered pursuant to the terms hereof, or pursuant to the terms of the Credit Agreement as amended hereby, are
hereby amended so that any reference therein to the Credit Agreement shall mean a reference to the Credit Agreement as amended hereby. 
  
 (d) Credit Agreement Remains in Effect. The Credit Agreement and the other Loan Documents remain in full force and effect and the
Borrower ratifies and confirms its agreements and covenants contained therein. 
  
 (e) Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable shall
not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or unenforceable. 
  
 (f) APPLICABLE LAW. THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO
BE PERFORMABLE IN THE STATE OF CALIFORNIA AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. 
  
 (g) Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of the Lenders and the Borrower and their
respective successors and assigns; provided, however, that the Borrower may not assign or transfer any of its rights or obligations hereunder without the prior written consent of the Lenders. 
  

 -8- 

 (h) Counterparts. This Amendment may be executed in one or more counterparts, each
of which when so executed shall be deemed to be an original, but all of which when taken together shall constitute one and the same instrument. 
  
 (i) Headings. The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment. 
  
 (j) NO
ORAL AGREEMENTS. THIS AMENDMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS AS WRITTEN, REPRESENTS THE FINAL AGREEMENT BETWEEN THE LENDERS AND THE BORROWER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE LENDERS AND THE BORROWER. 
  
 [Rest of page intentionally left blank; signature page follows] 
  

 -9- 

 IN WITNESS WHEREOF, the parties have entered into this Amendment by their respective duly authorized
officers as of the date first above written. 
  

			
	SERACARE LIFE SCIENCES, INC.
		
	By:	 	/s/    MICHAEL F. CROWLEY,
JR.        
	 	 	Michael F. Crowley, Jr.
	 	 	President and Chief Executive Officer
	
	BROWN BROTHERS HARRIMAN & CO., as the Collateral Agent and a Lender
		
	By:	 	/s/    J. EDWARD HALL        
	 	 	J. Edward Hall
	 	 	Managing Director
	
	UNION BANK OF CALIFORNIA, N.A., as the Administrative Agent and a Lender
		
	By:	 	/s/    DOUGLAS S.
LAMBELL        
	 	 	Douglas S. Lambell
	 	 	Vice President

  

 -10-Exhibit 10.22

 Exhibit 10.22 
  
 CBEYOND COMMUNICATIONS, INC. 
 FORM OF SUBSCRIPTION AGREEMENT 
  
 THIS SUBSCRIPTION AGREEMENT (this “Agreement”) is entered into as of             , 2005 by and between Cbeyond Communications, Inc., a Delaware corporation (the
“Company”), and the undersigned individual stockholder of the Company (the “Participating Stockholder”). 
  
 WHEREAS, the Company desires to issue and sell directly to the Participating Stockholder, and the Participating Stockholder desires to subscribe for and
purchase from the Company, shares (the “Subscription Shares”) of its common stock, par value $0.01 per share in an offering (the “Concurrent Offering”) concurrent with the Company’s initial public offering pursuant to a
registration statement on Form S-1 (Registration No. 333-124971), as amended, including any prospectuses (“Prospectus”) and any and all exhibits and other documents relating thereto (the “Registration Statement”), on the
terms and conditions set forth herein; 
  
 WHEREAS, the Company
and the Participating Stockholder are entering into this Agreement to provide for the issuance, purchase and sale of the Subscription Shares; and 
  
 WHEREAS, the Company will enter into an underwriting agreement (the “Underwriting Agreement”) with Deutsche Bank Securities Inc. as
representative of the several underwriters named therein (the “Underwriters”) simultaneously with the execution of this Agreement; 
  
 NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 
  
 1. Purchase of the Subscription Shares. The Company agrees to issue and sell the Subscription Shares to the Participating Stockholder as provided
in this Agreement, and the Participating Stockholder, on the basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth herein, agrees to purchase the Subscription Shares at a price per share of
$                 (the “Purchase Price”). The Company and the Participating Stockholder acknowledge and agree that no Underwriter (i) has provided
any services to the Company or the Participating Stockholder as to the structure or implementation of the Concurrent Offering; (ii) has arranged or otherwise participated in the Participating Stockholder’s purchase of the Subscription
Shares from the Company; or (iii) will receive any compensation in connection with the Participating Stockholder’s purchase of the Subscription Shares. 
  
 2. Payment for the Subscription Shares. Upon the execution of this Agreement, the Participating Stockholder shall pay
the aggregate Purchase Price into an escrow account (the “Escrow Account”) with                 , as escrow agent, in accordance with an escrow agreement in
the form attached hereto as Exhibit A (the “Escrow Agreement”). All funds deposited with the 

 
escrow agent shall be held and disbursed in accordance with the terms of such Escrow Agreement. 
  
 3. Representations and Warranties of the Company. The Company hereby represents and warrants to the Participating
Stockholder that each of the Company’s representations and warranties contained in the Underwriting Agreement is true and correct on the date hereof and that: 
  
 (a) Due Authorization. The Company has full right, power and authority to execute and deliver this
Agreement and to perform its obligations hereunder; and all action required to be taken for the due and proper authorization, execution and delivery by it of this Agreement and the consummation by it of the transactions contemplated hereby has been
duly and validly taken. 
  
 (b) Subscription
Agreement. This Agreement has been duly authorized, executed and delivered by the Company and is a binding agreement. 
  
 (c) Concurrent Offering. The Company has full right, power and authority to make the Concurrent Offering and to perform its
obligations thereunder; and all action required to be taken for the due and proper authorization of the Concurrent Offering and the consummation by it of the transactions contemplated thereby has been duly and validly taken. The Concurrent Offering
conforms, and will conform, in all material respects to the requirements of the Securities Act. 
  
 (d) The Subscription Shares. The Subscription Shares have been duly authorized by the Company and, when issued and delivered and
paid for as provided herein, will be duly and validly issued and will be fully paid and nonassessable and will conform to the descriptions thereof in the Prospectus; and the issuance of the Subscription Shares is not subject to any preemptive or
similar rights. 
  
 4. Further Agreements of the Company.
The Company covenants and agrees with the Participating Stockholder that: 
  
 (a) Effectiveness of the Registration Statement. The Company will file the final Prospectus with the Securities and Exchange Commission within the time periods specified by Rule 424(b) and Rule 430A under the
Securities Act. 
  
 (b) Delivery of Copies.
The Company will deliver to the Participating Stockholder, without charge, a copy of the final Prospectus prior to the Closing Date. 
  
 (c) Other Agreements. Concurrently with the execution of this Agreement, the Company and the Underwriters shall execute and deliver
the Underwriting Agreement, and the Company shall execute and deliver a subscription agreement in form and substance substantially identical hereto with another individual stockholder of the Company. 
  
 5. Capacity of the Participating Stockholder. The Participating
Stockholder hereby represents and warrants that he has full right and capacity to execute and deliver this Agreement and the Escrow Agreement and to perform his obligations hereunder and thereunder; and all 

  

 2 

 
action required to be taken for the due and proper execution and delivery by it of this Agreement and the Escrow Agreement and the consummation by him of the
transactions contemplated hereby and thereby has been duly and validly taken. 
  
 6. Conditions of Participating Stockholder’s Obligations. The obligation of the Participating Stockholder to purchase the Subscription Shares on the Closing Date is subject to the consummation of the
transactions contemplated by the Underwriting Agreement. 
  
 7.
Effectiveness of Agreement. This Agreement shall become effective upon the later of (i) the execution and delivery hereof by the parties hereto and (ii) receipt by the Company and the Participating Stockholder of notice of the
effectiveness of the Registration Statement (or, if applicable, any post-effective amendment thereto). 
  
 8. Termination. This Agreement shall be terminated without any further action in the event that the Underwriting Agreement has not been consummated
as of the Closing Date, and neither the Company nor the Participating Stockholder shall have any further obligations hereunder (except to the extent provided in Section 9 hereof). 
  
 9. Payment of Expenses. Whether or not the transactions contemplated by this Agreement are consummated or this
Agreement is terminated, each party shall pay its own respective expenses incurred in connection with this Agreement and the transactions contemplated hereunder. 
  
 10. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the
parties hereto and their respective successors. Nothing in this Agreement is intended or shall be construed to give any other person any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained
herein. Nothing in this Agreement is intended or shall be construed to give the Participating Stockholder any legal or equitable right, remedy or claim under or in respect of the Underwriting Agreement or any provision contained therein. 

 
 11. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York. 
  
 12. Counterparts. This Agreement may be signed in counterparts (which may include counterparts delivered by any standard form of telecommunication), each of which shall be an original and all of which together shall constitute one
and the same instrument. 
  
 13. Amendments or Waivers. No
amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto. 
  
 14. Headings. The headings herein are included for convenience of
reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement. 
  
 *        *        * 
  

 3 

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

			
	COMPANY:
	
	CBEYOND COMMUNICATIONS, INC.
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	PARTICIPATING STOCKHOLDER:
	
	  

 EXHIBIT A 
  

FORM OF ESCROW AGREEMENT 
  
 THIS ESCROW AGREEMENT (the “Agreement”) is entered into as of
                    , 2005, by and among Cbeyond Communications, Inc., a Delaware corporation (the “Company”), the undersigned individual
stockholder of the Company (the “Participating Stockholder”), and
                                        , as
escrow agent (the “Escrow Agent”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the subscription agreement (the “Subscription Agreement”), dated as of the date hereof, by and between
the Company and the Participating Stockholder. 
  
 WHEREAS, the
Company and the Participating Stockholder have entered into the Subscription Agreement, pursuant to which the Company shall issue and sell to the Participating Stockholder the Subscription Shares, upon the terms and subject to the conditions
thereof; and 
  
 WHEREAS, pursuant to Section 2 of the
Subscription Agreement, the parties hereto are hereby entering into this Agreement to provide for (i) payment by the Participating Stockholder of immediately available cash funds in the amount of $1,500,000 (the “Funds”) in respect of
the Subscription Shares and (ii) the terms and conditions pursuant to which the Funds shall be held and disbursed; 
  
 NOW, THEREFORE, in consideration of the mutual promises, covenants and agreements contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: 
  
 1. Receipt of Funds. By its signature below, the Escrow Agent acknowledges receipt of the Funds from the Participating Stockholder. 
  
 2. Investment of Funds. The Escrow Funds shall be invested by the
Escrow Agent in interest bearing bank accounts or certificates of deposit of federally insured financial institutions or in treasury bills or such other investments as may be directed by the written instructions of the Participating Stockholder. All
interest earned on the Escrow Funds shall be payable to the Participating Stockholder. 
  
 3. Release of Funds. The Escrow Agent shall release the Funds (i) to the Company, in the event that the Underwriting Agreement is consummated pursuant to Section 2(c) thereof, in respect of the
issuance and sale by the Company of the Subscription Shares in connection with the consummation of the Subscription Agreement pursuant to Section 1 thereof; or (ii) to the Participating Stockholder, in the event that the Underwriting
Agreement is terminated pursuant to Section 8 thereof, in which event the Participating Stockholder shall have no obligation to purchase the Subscription Shares as provided pursuant to Section 6 of the Subscription Agreement. 

 
 4. Escrow Agent’s Duties. The Company and the Participating
Stockholder acknowledge and agree that Escrow Agent (i) shall not be responsible for any of the agreements referred to herein but shall be obligated only for the performance of such duties as are 

 
specifically set forth in this Agreement and as set forth in any additional written escrow instructions which Escrow Agent may receive after the date of this
Agreement that are signed by an officer of the Company and by the Participating Stockholder; (ii) shall not be obligated to take any legal or other action hereunder which might in its reasonable judgment involve expense or liability unless it
shall have been furnished with indemnity reasonably acceptable to it; and (iii) may rely on and shall be protected in acting or refraining from acting upon any written notice, instruction, instrument, statement, request or document furnished to
it hereunder and reasonably believed by it to be genuine and to have been signed or presented by the proper person. 
  
 5. Indemnity. The Company and the Participating Stockholder agree to indemnify and hold harmless the Escrow Agent against any loss, claim, damage,
liability or expense incurred in connection with any action, suit, proceeding, claim or alleged liability arising from this Agreement, other than (i) any such matter arising from the Escrow Agent’s gross negligence or acts in bad faith by
it or any of its agents or employees or (ii) the Escrow Agent’s breach of this Agreement. 
  
 6. Effectiveness of Agreement. This Agreement shall become effective upon the later of (i) the execution and delivery hereof by the parties
hereto and (ii) receipt by the Company and the Participating Stockholder of notice of the effectiveness of the Registration Statement (or, if applicable, any post-effective amendment thereto). 
  
 7. Payment of Expenses. All expenses incurred by Escrow Agent in the
administration of this Agreement, including reasonable legal costs incurred by Escrow Agent, shall be paid by the Participating Stockholder. Any expenses incurred by the Company or the Participating Stockholder in connection with this Agreement
shall be borne by the respective party incurring such expenses. 
  
 8. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors. Nothing in this Agreement is intended or shall be construed to give any
other person any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision contained herein. Nothing in this Agreement is intended or shall be construed to give the Participating Stockholder any legal or
equitable right, remedy or claim under or in respect of the Underwriting Agreement or any provision contained therein. 
  
 9. Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 
  
 10. Counterparts. This Agreement may be signed in counterparts (which
may include counterparts delivered by any standard form of telecommunication), each of which shall be an original and all of which together shall constitute one and the same instrument. 
  
 11. Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval to
any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto. 
  

 2 

 12. Headings. The headings herein are included for convenience of reference only and are not
intended to be part of, or to affect the meaning or interpretation of, this Agreement. 
  
 *        *        * 
  
 IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date first above written. 
  

			
	 COMPANY:
  
 CBEYOND COMMUNICATIONS, INC.

		
	By:	 	 
	 Name:
 Title:
	 	 

  

			
	PARTICIPATING STOCKHOLDER:
		
	 	 	 
	 	 	 

  

			
	ESCROW AGENT:
		
	 	 	 
	 	 	 

  

			
		
	By:	 	 
	 Name:
 Title:
	 	 

  

 3

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