Document:

Exhibit 10.8

 

DEBTOR-IN-POSSESSION PLEDGE AGREEMENT

 

DEBTOR-IN-POSSESSION
PLEDGE AGREEMENT, dated as of October 30, 2009 (as amended, restated,
modified and/or supplemented from time to time, the “Agreement”), made
by each of the undersigned pledgors, each of which is a debtor and
debtor-in-possession under Chapter 11 of the Bankruptcy Code (as defined in the
Credit Agreement referred to below) (each, a “Pledgor” and collectively,
the “Pledgors”), in favor of BANK OF AMERICA, N.A., as Collateral Agent
(including any successor collateral agent, the “Pledgee”) for the
benefit of the Secured Creditors (as defined below).  Except as otherwise defined herein, terms
used herein and defined in the Credit Agreement (as defined below) shall be
used herein as therein defined.

 

W I T N E S S E T H :

 

WHEREAS,
FairPoint Communications, Inc., a Delaware corporation and a debtor and
debtor-in-possession under Chapter 11 of the Bankruptcy Code (“FairPoint”),
and FairPoint Logistics, Inc., a South Dakota corporation and a debtor and
debtor-in-possession under Chapter 11 of the Bankruptcy Code (“FairPoint
Logistics”; and together with FairPoint, each a “Borrower” and
collectively the “Borrowers”) and each of the other Pledgors have filed in the
United States Bankruptcy Court for the Southern District of New York (the “Bankruptcy
Court”) a voluntary petition for relief under Chapter 11 of the Bankruptcy
Code and have continued in the possession of their assets and in the management
of their businesses pursuant to Sections 1107 and 1108 of the Bankruptcy Code,
and such reorganization cases are being jointly administered under Case Number
09-16335-brl (the “Cases”);

 

WHEREAS,
the Borrowers, the lenders from time to time party thereto (the “Lenders”)
and Bank of America, N.A., as Administrative Agent, have entered into a
Debtor-In-Possession Credit Agreement, dated as of October 27, 2009 (as
amended, modified, restated and/or supplemented from time to time, the “Credit
Agreement”), providing for the making of Loans to, and the issuance of, and
participation in, Letters of Credit for the account of the Borrowers and/or one
or more of their Subsidiaries, all as contemplated therein (the Lenders, the
Letter of Credit Issuer, the Administrative Agent, the Collateral Agent and the
Pledgee are herein called the “Secured Creditors”).

 

WHEREAS,
it is a condition precedent to the making of Loans and the issuance of, and
participation in, Letters of Credit under the Credit Agreement that each
Pledgor shall have executed and delivered to the Pledgee this Agreement.

 

WHEREAS,
each Pledgor desires to execute this Agreement to satisfy the condition
described in the preceding paragraph.

 

NOW,
THEREFORE, in consideration of the benefits accruing to each Pledgor, the
receipt and sufficiency of which are hereby acknowledged, each Pledgor hereby
makes the following representations and warranties to the Pledgee and hereby
covenants and agrees with the Pledgee as follows:

 

1.                                       SECURITY FOR OBLIGATIONS.  This Agreement is made by each Pledgor for
the benefit of the Secured Creditors to secure:

 

 

(i)                                     the full and
prompt payment when due (whether at the stated maturity, by acceleration or
otherwise) of all obligations and liabilities of the Borrowers (in the case of
the Borrowers or an NSG Pledgor) or such Pledgor (in the case of a Pledgor that
is a Subsidiary Guarantor), now existing or hereafter incurred under, arising
out of or in connection with any Credit Document to which any Borrower or such
Pledgor, as the case may be, is a party (including, in the case of a Pledgor
that is a Subsidiary Guarantor, all such obligations of such Pledgor under the
Subsidiary Guaranty) and the due performance of and compliance by the Borrowers
or such Pledgor, as the case may be, with the terms of each such Credit
Document (all such obligations and liabilities under this clause (i) being
herein, collectively called the “Credit Document Obligations”);

 

(ii)                                  any and all
sums advanced by the Pledgee in order to preserve the Collateral (as
hereinafter defined) and/or its security interest therein;

 

(iii)                               in the event of
any proceeding for the collection of the Obligations (as defined below) or the
enforcement of this Agreement, after an Event of Default shall have occurred
and be continuing, the reasonable out-of-pocket expenses of retaking, holding,
preparing for sale or lease, selling or otherwise disposing of or realizing on
the Collateral, or of any exercise by the Pledgee of its rights hereunder
(including the reasonable fees, disbursements and other charges if (x) counsel
to the Administrative Agent, the Pledgee and the Secured Creditors and (y) the
Financial Advisor); provided, that the Pledgors’ obligation to pay the
fees, disbursements and other charges of counsel to the Secured Creditors (but
not of counsel to the Administrative Agent or the Pledgee) shall be limited to
one outside counsel, which as of the Closing Date, is Wachtell Lipton, Rosen
and Katz; and

 

(iv)                              all amounts
paid by any Secured Creditor as to which such Secured Creditor has the right to
reimbursement under Section 11 of this Agreement;

 

all
such obligations, liabilities, sums and expenses set forth in clauses (i) through
(iv) of this Section 1 being herein collectively called the “Obligations”.

 

2.                                       DEFINITIONS.  All
capitalized terms used herein and not otherwise defined herein shall have the
meanings specified in the Credit Agreement. 
The following capitalized terms used herein shall have the definitions
specified below:

 

“Certificated
Security” shall have the meaning given such term in Section 8-102(a)(4) of
the UCC.

 

“Clearing
Corporation” shall have the meaning given such term in Section 8-102(a)(5) of
the UCC.

 

“Collateral”
shall have the meaning provided in Section 3.1.

 

“Collateral
Accounts” shall mean any and all accounts established and maintained by the
Pledgee in the name of any Pledgor to which Collateral may be credited.

 

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“Excluded
Entity” shall mean each of the corporations, partnerships, limited
liability companies or associations listed on Annex F hereto where the capital
stock or other equity interests of such corporations, partnerships, limited
liability companies or associations are not permitted by applicable law, rule or
regulation to be pledged by the direct or indirect Subsidiary of FairPoint that
owns such capital stock or other equity interests.

 

“Financial
Asset” shall have the meaning given such term in Section 8-102(a)(9) of
the UCC.

 

“Instrument”
shall have the meaning given such term in Section 9-102(a)(47) of the UCC.

 

“Investment
Property” shall have the meaning given such term in Section 9-102(a)(49)
of the UCC.

 

“Location”
of any Pledgor has the meaning given such term in Section 9-307 of the
UCC.

 

“Membership
Interest” shall mean the entire membership interest at any time owned by
any Pledgor in any limited liability company (other than, for the avoidance of
doubt, an Excluded Entity).

 

“Notes”
shall mean all promissory notes at any time issued to, or held by, any Pledgor.

 

“NSG
Pledgor” shall mean each Pledgor which is not a Subsidiary Guarantor.

 

“Obligations”
shall have the meaning provided in Section 1.

 

“Partnership
Interest” shall mean the entire partnership interest (whether general
and/or limited partnership interests) at any time owned by any Pledgor in any
partnership (other than, for the avoidance of doubt, an Excluded Entity).

 

“Pledged
LLC” shall mean any limited liability company (other than, for the
avoidance of doubt, an Excluded Entity) in which any Pledgor owns a membership
interest.

 

“Pledged
Membership Interests” shall mean all Membership Interests at any time
pledged or required to be pledged hereunder.

 

“Pledged
Notes” shall mean all Notes at any time pledged or required to be pledged
hereunder.

 

“Pledged
Partnership” shall mean any partnership (other than, for the avoidance of
doubt, an Excluded Entity) in which any Pledgor owns a partnership interest.

 

“Pledged
Partnership Interests” shall mean all Partnership Interests at any time
pledged or required to be pledged hereunder.

 

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“Pledged
Securities” shall mean all Pledged Stock, Pledged Notes, Pledged
Partnership Interests and Pledged Membership Interests.

 

“Pledged
Stock” shall mean all Stock at any time pledged or required to be pledged
hereunder.

 

“Proceeds”
shall have the meaning given such term in Section 9-102(a)(64) of the UCC.

 

“Registered
Organization” shall have the meaning given such term in Section 9-102(a)(70)
of the UCC.

 

“Securities”
shall mean all of the Stock, Notes, Partnership Interests and Membership
Interests.

 

“Securities
Intermediary” shall have the meaning given such term in Section 8-102(14)
of the UCC.

 

“Security
Entitlement” shall have the meaning given such term in Section 8-102(a)(17)
of the UCC.

 

“Stock”
shall mean (x) all of the issued and outstanding shares of stock at any
time owned by any Pledgor of any corporation (other than, for the avoidance of
doubt, an Excluded Entity).

 

“Transmitting
Utility” has the meaning given such term in Section 9-102(a)(80) of
the UCC.

 

“UCC”
shall mean the Uniform Commercial Code as in effect in the State of New York
from time to time; provided that all references herein to specific
Sections or subsections of the UCC are references to such Sections or
subsections, as the case may be, of the Uniform Commercial Code as in effect in
the State of New York on the date hereof.

 

“Uncertificated
Security” shall have the meaning given such term in Section 8-102(a)(18)
of the UCC.

 

3.                                       PLEDGE OF SECURITIES, ETC.

 

3.1                                 Pledge.  To secure the Obligations now or hereafter
owed or to be performed by such Pledgor, each Pledgor does hereby grant,
pledge, hypothecate, mortgage, charge and assign to the Pledgee for the benefit
of the Secured Creditors, and does hereby create a continuing security interest
in favor of the Pledgee for the benefit of the Secured Creditors in, all of its
right, title and interest in and to the following, whether now existing or
hereafter from time to time acquired (collectively, the “Collateral”):

 

(i)                                     all of the
Securities owned or held by such Pledgor from time to time and all options and
warrants owned by such Pledgor from time to time to purchase Securities (and
all certificates or instruments evidencing such Securities);

 

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(ii)                                  each Collateral
Account, including any and all assets of whatever type or kind deposited by
such Pledgor in any such Collateral Account, whether now owned or hereafter
acquired, existing or arising (including, without limitation, all Financial
Assets, Investment Property, monies, checks, drafts, Instruments or interests
therein of any type or nature deposited or required by the Credit Agreement or
any other Credit Document to be deposited in such Collateral Account, and all
investments and all certificates and other instruments (including depository
receipts, if any) from time to time representing or evidencing the same, and
all dividends, interest, distributions, cash and other property from time to
time received, receivable or otherwise distributed in respect of or in exchange
for any or all of the foregoing);

 

(iii)                               all of such
Pledgor’s (x) Partnership Interest and all of such Pledgor’s right, title
and interest in each Pledged Partnership and (y) Membership Interest and
all of such Pledgor’s right, title and interest in each Pledged LLC, in each
case including, without limitation:

 

(a)                                  all the capital
thereof and its interest in all profits, losses and other distributions to
which such Pledgor shall at any time be entitled in respect of such Partnership
Interest and/or Membership Interest;

 

(b)                                 all other
payments due or to become due to such Pledgor in respect of such Partnership
Interest and/or Membership Interest, whether under any partnership agreement,
limited liability company agreement or otherwise, whether as contractual
obligations, damages, insurance proceeds or otherwise;

 

(c)                                  all of its
claims, rights, powers, privileges, authority, options, security interest,
liens and remedies, if any, under any partnership agreement, limited liability
company agreement or at law or otherwise in respect of such Partnership
Interest and/or Membership Interest;

 

(d)                                 all present and
future claims, if any, of the Pledgor against any Pledged Partnership and any
Pledged LLC for moneys loaned or advanced, for services rendered or otherwise;

 

(e)                                  all of such
Pledgor’s rights under any partnership agreement or limited liability company
agreement or at law to exercise and enforce every right, power, remedy,
authority, option and privilege of such Pledgor relating to the Partnership Interest
and/or Membership Interest, including any power to terminate, cancel or modify
any partnership agreement or any limited liability company agreement, to
execute any instruments and to take any and all other action on behalf of and
in the name of such Pledgor in respect of any Partnership Interest or
Membership Interest and any Pledged Partnership and any Pledged LLC to make
determinations, to exercise any election (including, but not limited to,
election of remedies) or option or to give or receive any notice, consent,
amendment, waiver or approval, together with full power and authority to
demand, receive, enforce, collect or receipt for any of the foregoing, to
enforce or 

 

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execute
any checks, or other instruments or orders, to file any claims and to take any
action in connection with any of the foregoing; and

 

(f)                                    all other
property hereafter delivered in substitution for or in addition to any of the
foregoing, all certificates and instruments representing or evidencing such
other property and all cash, securities, interest, dividends, rights and other
property at any time and from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all thereof;

 

(iv)                              all Security
Entitlements owned by such Pledgor from time to time in any and all of the
foregoing; and

 

(v)                                 all Proceeds of
any and all of the foregoing.

 

3.2                                 Perfection and
Priority.  Upon the
entry of the Interim Order and the Final Order, as applicable, all Liens and
security interests granted to the Pledgee hereunder shall constitute valid and
perfected Liens on all of the Collateral having the priority specified therein
and shall automatically, and without further action by any Person, perfect such
Liens and security interests against the Collateral; provided, however, nothing
herein shall prevent the Pledgee from otherwise perfecting, maintaining,
protecting or enforcing the Liens and security interests in the Collateral
granted hereunder. Notwithstanding any failure on the part of any Pledgor to
take any action required by this Agreement, or perform or fulfill any of the
obligations of such Pledgor under or pursuant to this Agreement, the Liens and
security interests granted herein shall be deemed valid, enforceable and
perfected by entry of each Financing Order. 
No financing statement, notice of lien, mortgage, deed of trust or
similar instrument in any jurisdiction or filing office need be filed or any
other action taken in order to validate and perfect the Liens and security
interest granted by or pursuant to this Agreement or the Financing Orders.

 

3.3                                 Claim
Priorities. All Obligations shall constitute, in accordance
with Section 364(c)(1) of the Bankruptcy Code, claims against each
Pledgor in its Case that are administrative expense claims having priority over
any and all administrative expenses of the kind specified in Sections 503(b) or
507(b) of the Bankruptcy Code, subject only to the Carve-Out.

 

3.4                                 Modifications.

 

(a)                                  The Liens, lien
priority, administrative priorities and other rights and remedies granted to
the Pledgee pursuant to this Agreement and the Financing Orders (including the
existence, perfection and priority of the Liens provided herein and therein and
the administrative priority provided herein and therein) shall not be modified,
altered or impaired in any manner by any other financing or extension of credit
or incurrence of any Indebtedness by any of the Pledgors (pursuant to Section 364
of the Bankruptcy Code or otherwise), or by any dismissal or conversion of any
Case, or by any other act or omission whatsoever.  Without limitation, notwithstanding any such
order, financing, extension, incurrence, dismissal, conversion, act or
omission:

 

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(i)                                     except for the
Carve-Out having priority over the Obligations, no costs or expenses of
administration that have been or may be incurred in any of the Cases or any
conversion of the same or in any other proceedings related thereto, and no
priority claims, are or shall be prior to or on a parity with any claim of the
Secured Creditors against the Pledgors in respect of any Obligation;

 

(ii)                                  the Liens
granted herein and in the Financing Orders shall constitute valid and perfected
first priority Liens and security interests and shall be prior to all other
Liens, now existing or hereafter arising, in favor of any other creditor or any
other Person whatsoever (subject only to (A) valid, perfected,
nonavoidable and enforceable Liens existing as of the Petition Date, (B) the
extent such postpetition perfection is expressly permitted by the Bankruptcy
Code, valid, nonavoidable and enforceable Liens existing as of the Petition
Date, but perfected after the Petition Date, and (C) the Carve-Out);

 

(iii)                               the Liens
granted hereunder shall continue valid and perfected without the necessity that
financing statements be filed or that any other action be taken under
applicable nonbankruptcy law; and

 

(iv)                              notwithstanding
any failure on the part of any Credit Party or the Secured Creditors to
perfect, maintain, protect or enforce the Liens in the Collateral granted
hereunder, the Financing Orders shall, automatically and without further action
by any Person, perfect such Liens against the Collateral.

 

3.5                                 Procedures.  (a)  To the extent that any Pledgor at
any time or from time to time owns, acquires or obtains any right, title or
interest in any Collateral, such Collateral shall automatically (and without
the taking of any action by such Pledgor) be pledged pursuant to Section 3.1
of this Agreement and, in addition thereto, such Pledgor shall (to the extent
provided below) forthwith take the following actions as set forth below:

 

(i)                                     with respect to
a Certificated Security (other than a Certificated Security credited on the
books of a Clearing Corporation or Securities Intermediary), such Pledgor shall
physically deliver such Certificated Security to the Pledgee, endorsed to the
Pledgee or endorsed in blank;

 

(ii)                                  with respect to
an Uncertificated Security (other than an Uncertificated Security credited on
the books of a Clearing Corporation or Securities Intermediary), such Pledgor
shall cause the issuer of such Uncertificated Security to duly authorize,
execute, and deliver to the Pledgee, an agreement for the benefit of the
Pledgee and the other Secured Creditors substantially in the form of Annex E
hereto (appropriately completed to the satisfaction of the Pledgee and with
such modifications, if any, as shall be satisfactory to the Pledgee) pursuant
to which such issuer agrees to comply with any and all instructions originated
by the Pledgee without further consent by the registered owner and not to
comply with instructions regarding such Uncertificated Security (and any
Partnership Interests and Membership Interests issued by such issuer)
originated by any other Person other than a court of competent jurisdiction;

 

7

 

(iii)                               with respect to
a Certificated Security, Uncertificated Security, Partnership Interest or
Membership Interest credited on the books of a Clearing Corporation or
Securities Intermediary (including a Federal Reserve Bank, Participants Trust
Company or The Depository Trust Company), such Pledgor shall promptly notify
the Pledgee thereof and shall promptly take (x) all actions required (i) to
comply with the applicable rules of such Clearing Corporation or
Securities Intermediary and (ii) to perfect the security interest of the
Pledgee under applicable law (including, in any event, under Sections 9-314(a),
(b) and (c), 9-106 and 8-106(d) of the UCC) and (y) such other
actions as the Pledgee deems necessary or desirable to effect the foregoing;

 

(iv)                              with respect to
a Partnership Interest or a Membership Interest (other than a Partnership
Interest or Membership Interest credited on the books of a Clearing Corporation
or Securities Intermediary), (1) if such Partnership Interest or
Membership Interest is represented by a certificate and is a Security for
purposes of the UCC, the procedure set forth in Section 3.5(a)(i) hereof;
and (2) if such Partnership Interest or Membership Interest is not
represented by a certificate or is not a Security for purposes of the UCC, the
procedure set forth in Section 3.5(a)(ii) hereof;

 

(v)                                 with respect to
any Note, physical delivery of such Note to the Pledgee, endorsed in blank, or,
at the request of the Pledgee, endorsed to the Pledgee; and

 

(vi)                              with respect to
cash proceeds from any of the Collateral described in Section 3.1 hereof, (i) the
establishment by the Pledgee of a cash account in the name of such Pledgor over
which the Pledgee shall have “control” within the meaning of the UCC and, at
any time any Event of Default is in existence, no withdrawals or transfers may
be made therefrom by any Person except with the prior written consent of the
Pledgee and (ii) the deposit of such cash in such cash account.

 

(b)                                 In addition to
the actions required to be taken pursuant to Section 3.5(a) hereof,
each Pledgor shall take the following additional actions with respect to the
Collateral:

 

(i)                                     with respect to
all Collateral of such Pledgor whereby or with respect to which the Pledgee may
obtain “control” thereof within the meaning of Section 8-106 of the UCC
(or under any provision of the UCC as same may be amended or supplemented from
time to time, or under the laws of any relevant State other than the State of
New York), such Pledgor shall take all actions as may be requested from time to
time by the Pledgee so that “control” of such Collateral is obtained and at all
times held by the Pledgee; and

 

(ii)                                  if requested by
Pledgee, each Pledgor shall from time to time cause appropriate financing
statements (on appropriate forms) under the Uniform Commercial Code as in
effect in the various relevant States, covering all Collateral hereunder (with
the form of such financing statements to be satisfactory to the Pledgee), to be
filed in the relevant filing offices so that at all times the Pledgee’s
security interest in all Investment Property and other Collateral which can be
perfected by the filing of such financing statements (in each case to the
maximum extent perfection by filing may be obtained 

 

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under
the laws of the relevant States, including, without limitation, Section 9-312(a) of
the UCC) is so perfected.

 

3.6                                 Subsequently
Acquired Collateral.  If any
Pledgor shall acquire (by purchase, stock dividend or otherwise) any additional
Collateral at any time or from time to time after the date hereof, such Pledgor
will forthwith thereafter take (or cause to be taken) all action with respect
to such Collateral in accordance with the procedures set forth in Section 3.5
hereof, and will promptly thereafter deliver to the Pledgee a certificate
executed by a principal executive officer of such Pledgor describing such
Collateral and certifying that the same have been duly pledged with the Pledgee
hereunder.

 

3.7                                 Certain
Representations and Warranties Concerning the Collateral.  Each Pledgor represents and warrants that on
the date hereof:  (a) each Subsidiary
of such Pledgor whose equity interest is required to be pledged hereunder, and
the direct ownership thereof, is listed on Annex A hereto; (b) the Stock
held by such Pledgor consists of the number and type of shares of the stock of
the corporations as described in Annex B hereto; (c) such Stock
constitutes that percentage of the issued and outstanding capital stock of the
issuing corporation as set forth in Annex B hereto; (d) the Notes held by
such Pledgor consist of the promissory notes described in Annex C hereto; (e) such
Pledgor is the holder of record and sole beneficial owner of the Stock and
Notes held by such Pledgor and there exists no options or preemption rights in
respect of any of the Stock; (f) the Partnership Interests and Membership
Interests, as the case may be, held by such Pledgor constitute that percentage
of the entire interest of the respective Pledged Partnership or Pledged LLC, as
the case may be, as is set forth under its name in Annex D hereto; (g) on
the date hereof, such Pledgor owns or possesses no other Securities except as
described on Annexes B, C and D hereto; and (h) the Pledgor has complied
with the respective procedure set forth in Section 3.5(a) hereof with
respect to each item of Collateral described in Annexes B, C and D hereto.

 

4.                                       APPOINTMENT OF SUB-AGENTS; ENDORSEMENTS, ETC.  The Pledgee shall have the right to appoint
one or more sub-agents for the purpose of retaining physical possession of the
Pledged Securities, which may be held (in the discretion of the Pledgee) in the
name of the relevant Pledgor, endorsed or assigned in blank or in favor of the
Pledgee or any nominee or nominees of the Pledgee or a sub-agent appointed by
the Pledgee.

 

5.                                       VOTING, ETC., WHILE NO EVENT OF DEFAULT.  Unless and until there shall have occurred
and be continuing an Event of Default, each Pledgor shall be entitled to
exercise all voting rights attaching to any and all Pledged Securities owned by
it, and to give consents, waivers or ratifications in respect thereof, provided
that no vote shall be cast or any consent, waiver or ratification given or any
action taken which would violate, result in breach of any covenant contained
in, or be inconsistent with, any of the terms of this Agreement, the Credit
Agreement or any other Credit Document , or which would have the effect of
impairing the value of the Collateral or any part thereof or the position or
interests of the Pledgee or any other Secured Creditor therein.  All such rights of a Pledgor to vote and to
give consents, waivers and ratifications shall cease in case an Event of
Default shall occur and be continuing and Section 7 hereof shall become
applicable.

 

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6.                                       DIVIDENDS AND OTHER DISTRIBUTIONS.  Unless and until an Event of Default shall
have occurred and be continuing, all cash dividends, distributions or other
amounts payable in respect of the Pledged Securities shall be paid to the
respective Pledgor, provided that all dividends, distributions or other
amounts payable in respect of the Pledged Securities which are determined by
the Pledgee, in its absolute discretion, to represent in whole or in part an
extraordinary, liquidating or other distribution in return of capital not
permitted by the Credit Agreement shall be paid, to the extent so determined to
represent an extraordinary, liquidating or other distribution in return of
capital not permitted by the Credit Agreement, to the Pledgee and retained by
it as part of the Collateral (unless such cash dividends or distributions are
applied to repay the Obligations pursuant to Section 9 of this
Agreement).  The Pledgee shall also be
entitled to receive directly, and to retain as part of the Collateral:

 

(i)                                     all other or
additional stock, notes, membership interests, partnership interests or other
securities or property (other than cash) paid or distributed by way of dividend
or otherwise in respect of the Collateral;

 

(ii)                                  all other or
additional stock, notes, membership interests, partnership interests or other
securities or property (including cash) paid or distributed in respect of the
Collateral by way of stock-split, spin-off, split-up, reclassification,
combination of shares or similar rearrangement; and

 

(iii)                               all other or
additional stock, notes, membership interests, partnership interests or other
securities or property (including cash) which may be paid in respect of the
Collateral by reason of any consolidation, merger, exchange of stock,
conveyance of assets, liquidation or similar corporate reorganization.

 

Nothing
contained in this Section 6 shall limit or restrict in any way the Pledgee’s
right to receive the proceeds of the Collateral in any form in accordance with Section 3
of this Agreement.  All dividends,
distributions or other payments which are received by the respective Pledgor
contrary to the provisions of this Section 6 or Section 7 shall be
received in trust for the benefit of the Pledgee, shall be segregated from
other property or funds of such Pledgor and shall be forthwith paid over to the
Pledgee as Collateral in the same form as so received (with any necessary
endorsement).

 

7.                                       REMEDIES IN CASE OF AN EVENT OF DEFAULT.  In case an Event of Default shall have
occurred and be continuing, the Pledgee shall upon five (5) days’ notice
to the Pledgors (with a copy to counsel for the Committee and to the United
States Trustee for the Southern District of New York) be entitled to exercise
all of the rights, powers and remedies (whether vested in it by this Agreement
or any other Credit Document or by law) for the protection and enforcement of
its rights in respect of the Collateral, including, without limitation, all the
rights and remedies of a secured party upon default under the Uniform
Commercial Code of the State of New York, and the Pledgee shall be entitled,
without limitation, to exercise any or all of the following rights, which each
Pledgor hereby agrees to be commercially reasonable:

 

(i)                                     to receive all
amounts payable in respect of the Collateral otherwise payable under Section 6
to such Pledgor,

 

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(ii)                                  to transfer all
or any part of the Collateral into the Pledgee’s name or the name of its
nominee or nominees;

 

(iii)                               to accelerate
any Pledged Note which may be accelerated in accordance with its terms, and
take any other lawful action to collect upon any Pledged Note (including,
without limitation, to make any demand for payment thereon);

 

(iv)                              to vote all or
any part of the Collateral (whether or not transferred into the name of the
Pledgee) and give all consents, waivers and ratifications in respect of the
Collateral and otherwise act with respect thereto as though it were the
outright owner thereof (each Pledgor hereby irrevocably constituting and
appointing the Pledgee the proxy and attorney-in-fact of such Pledgor, with
full power of substitution to do so);

 

(v)                                 to set off any
and all Collateral against any and all Obligations, and to withdraw any and all
cash or other Collateral from any and all Collateral Accounts and to apply such
cash and other Collateral to the payment of any and all Obligations; and

 

(vi)                              at any time or
from time to time to sell, assign and deliver, or grant options to purchase,
all or any part of the Collateral, or any interest therein, at any public or
private sale, without demand of performance, advertisement or notice of intention
to sell or of the time or place of sale or adjournment thereof or to redeem or
otherwise (all of which are hereby waived by each Pledgor), for cash, on credit
or for other property, for immediate or future delivery without any assumption
of credit risk, and for such price or prices and on such terms as the Pledgee
in its absolute discretion may determine, provided that at least 10 days’
notice of the time and place of any such sale shall be given to such
Pledgor.  The Pledgee shall not be
obligated to make such sale of Collateral regardless of whether any such notice
of sale has theretofore been given.  Each
purchaser at any such sale shall hold the property so sold absolutely free from
any claim or right on the part of any Pledgor, and each Pledgor hereby waives
and releases to the fullest extent permitted by law any right or equity of
redemption with respect to the Collateral, whether before or after sale
hereunder, all rights, if any, of marshalling the Collateral and any other
security for the Obligations or otherwise, and all rights, if any, of stay
and/or appraisal which it now has or may at any time in the future have under rule of
law or statute now existing or hereafter enacted.  At any such sale, unless prohibited by
applicable law, the Pledgee on behalf of all Secured Creditors (or certain of
them) may bid for and purchase (by bidding in Obligations or otherwise) all or
any part of the Collateral so sold free from any such right or equity of
redemption.  Neither the Pledgee nor any
Secured Creditor shall be liable for failure to collect or realize upon any or
all of the Collateral or for any delay in so doing nor shall it be under any
obligation to take any action whatsoever with regard thereto.

 

8.                                       REMEDIES, ETC., CUMULATIVE.  Each right, power and remedy of the Pledgee
provided for in this Agreement or any other Credit Document, or now or
hereafter existing at law or in equity or by statute shall be cumulative and
concurrent and shall be in addition to every other such right, power or remedy.  The exercise or beginning of the exercise by
the Pledgee or any other Secured Creditor of any one or more of the rights,
powers or remedies provided for in this Agreement or any other Credit Document
or now or hereafter 

 

11

 

existing
at law or in equity or by statute or otherwise shall not preclude the
simultaneous or later exercise by the Pledgee or any other Secured Creditor of
all such other rights, powers or remedies, and no failure or delay on the part
of the Pledgee or any other Secured Creditor to exercise any such right, power
or remedy shall operate as a waiver thereof. 
Unless otherwise required by the Credit Documents, no notice to or
demand on any Pledgor in any case shall entitle it to any other or further
notice or demand in similar other circumstances or constitute a waiver of any
of the rights of the Pledgee or any other Secured Creditor to any other further
action in any circumstances without demand or notice.  The Secured Creditors agree that this
Agreement may be enforced only by the action of the Administrative Agent or the
Pledgee, in each case acting upon the instructions of the Required Lenders and
that no other Secured Creditor shall have any right individually to seek to
enforce or to enforce this Agreement or to realize upon the security to be
granted hereby, it being understood and agreed that such rights and remedies
may be exercised by the Administrative Agent or the Pledgee for the benefit of
the Secured Creditors upon the terms of this Agreement.  Exercise by the Collateral Agent of the
powers granted under this Agreement is not a violation of the automatic stay
provided by Section 362 of the Bankruptcy Code and each Pledgor waives
applicability thereof.  The Secured
Creditors shall be entitled to all of the rights and benefits of section 552(b) of
the Bankruptcy Code, and the “equities of the case” exception under section 552(b) of
the Bankruptcy Code shall not apply to the Secured Creditors with respect to
proceeds, product, offspring or profits of any of the Collateral.

 

9.                                       APPLICATION OF PROCEEDS.  (a) All moneys collected by the Pledgee
or the Collateral Agent upon any sale or other disposition of the Collateral,
together with all other moneys received by the Pledgee or the Collateral Agent
hereunder, shall be applied as follows:

 

(i)                                     first, to the
payment of all Obligations owing to the Pledgee or the Collateral Agent of the
type described in clauses (ii) and (iii) of the definition of “Obligations”
contained in Section 1 hereof;

 

(ii)                                  second, to the extent
proceeds remain after the application pursuant to preceding clause (i), an
amount equal to the outstanding Obligations to the Secured Creditors shall be
paid to the Secured Creditors as provided in Section 9(c), with each
Secured Creditor receiving an amount equal to its outstanding Obligations or,
if the proceeds are insufficient to pay in full all such Obligations, its Pro Rata,
Share of the amount remaining to be distributed to be applied, with respect to
the Obligations, firstly, to the payment of interest in respect of the
unpaid principal amount of Loans outstanding, secondly, to the payment
of principal of Loans outstanding, then to the other Obligations; and

 

(iii)                               third, to the extent
proceeds remain after the application pursuant to the preceding clauses (i) and
(ii) and following the termination of this Agreement pursuant to Section 18
hereof, to the relevant Pledgor or, to the extent directed by such Pledgor or a
court of competent jurisdiction, to whomever may be lawfully entitled to
receive such surplus.

 

12

 

(b)                                 For purposes of
this Agreement, “Pro Rata Share” shall mean, when calculating a Secured
Creditor’s portion of any distribution or amount, the amount (expressed as a
percentage) equal to a fraction the numerator of which is the then outstanding
amount of the relevant Obligations owed such Secured Creditor and the
denominator of which is the then outstanding amount of all Obligations.

 

(c)                                  All payments
required to be made to the Secured Creditors hereunder shall be made to the
Administrative Agent for the account of the respective Secured Creditors.

 

(d)                                 It is
understood that each Pledgor shall remain jointly and severally liable to the
extent of any deficiency between (x) the amount of the Obligations for
which it is liable directly or as a Guarantor that are satisfied with proceeds
of the Collateral and (y) the aggregate outstanding amount of the
Obligations.

 

10.                                 PURCHASERS OF COLLATERAL.  Upon any sale of the Collateral by the
Pledgee hereunder (whether by virtue of the power of sale herein granted,
pursuant to judicial process or otherwise), the receipt of the Pledgee or the
officer making the sale shall be a sufficient discharge to the purchaser or
purchasers of the Collateral so sold, and such purchaser or purchasers shall
not be obligated to see to the application of any part of the purchase money
paid over to the Pledgee or such officer or be answerable in any way for the
misapplication or nonapplication thereof.

 

11.                                 INDEMNITY.  Each
Pledgor jointly and severally agrees (i) to indemnify and hold harmless
the Pledgee and the other Secured Creditors from and against any and all
claims, demands, losses, judgments and liabilities (including liabilities for penalties)
of whatsoever kind or nature, except (x) for  those arising from such Person’s gross
negligence or willful misconduct as determined by a court of competent
jurisdiction in a final and non-appealable decision and (ii) to the extent
such claims, demands, losses, judgments and liabilities arise out of or in
connection with any investigation, litigation or other proceeding that does not
involve an act or omission by a Borrower or any Affiliate thereof and that is
brought by one Lender (in its capacity as such) against any other Lenders (in
its capacity as such) and (ii) to reimburse the Pledgee for all reasonable
out-of-pocket costs and expenses, including reasonable attorneys’ fees, arising
in connection with any amendment, waiver or modification to this Agreement and
the administration thereof and the Pledgee and the other Secured Creditors for
all reasonable costs and expenses (including reasonable attorney’s fees)
growing out of or resulting from the exercise by the Pledgee of any right or
remedy granted to it hereunder or under any other Credit Document (including
the reasonable fees, disbursements and other charges of (x) counsel to the
Administrative Agent and the Pledgee and (y) the Financial Advisor); provided,
that the Pledgors’ obligation to pay the fees, disbursements and other charges
of counsel to the Secured Creditors (but not of counsel to the Administrative
Agent or the Pledgee) shall be limited to one outside counsel, which, as of the
Closing Date, is Wachtell, Lipton, Rosen & Katz).  In no event shall the Pledgee be liable, in
the absence of gross negligence or willful misconduct on its part (as
determined by a court of competent jurisdiction in a final and non-appealable
decision), for any matter or thing in connection with this Agreement other than
to account for moneys or other property actually received by it in accordance
with the terms hereof.  If and to the
extent that the obligations of any Pledgor under this Section 11 are
unenforceable 

 

13

 

for
any reason, such Pledgor hereby agrees to make the maximum contribution to the
payment and satisfaction of such obligations which is permissible under
applicable law.

 

12.                                 FURTHER ASSURANCES; POWER OF ATTORNEY.  (a)  Each Pledgor agrees that it will
join with the Pledgee in executing and, at such Pledgor’s own expense, file and
refile under the Uniform Commercial Code such financing statements,
continuation statements and other documents in such offices as the Pledgee may
reasonably deem necessary or appropriate and wherever required or permitted by
law in order to perfect and preserve the Pledgee’s security interest in the
Collateral hereunder and hereby authorizes the Pledgee to file financing
statements and amendments thereto relative to all or any part of the Collateral
without the signature of such Pledgor where permitted by law, and agrees to do
such further acts and things and to execute and deliver to the Pledgee such
additional conveyances, assignments, agreements and instruments as the Pledgee
may reasonably require or deem advisable to carry into effect the purposes of
this Agreement or to further assure and confirm unto the Pledgee its rights,
powers and remedies hereunder or thereunder.

 

(b)                                 Each Pledgor
hereby appoints the Pledgee, such Pledgor’s attorney-in-fact, with full
authority in the place and stead of such Pledgor and in the name of such
Pledgor or otherwise, from time to time after the occurrence and during the
continuance of an Event of Default, in the Pledgee’s reasonable discretion to
take any action and to execute any instrument which the Pledgee may reasonably
deem necessary or advisable to accomplish the purposes of this Agreement.

 

13.                                 THE PLEDGEE AS COLLATERAL AGENT.  The Pledgee will hold in accordance with this
Agreement all items of the Collateral at any time received under this
Agreement.  It is expressly understood
and agreed that the obligations of the Pledgee as holder of the Collateral and
interests therein and with respect to the disposition thereof, and otherwise
under this Agreement, are only those expressly set forth in this
Agreement.  The Pledgee shall act
hereunder on the terms and conditions set forth herein and in Section 10
of the Credit Agreement.  If any Pledgor
fails to perform or comply with any of its agreements contained in this
Agreement and the Pledgee, as provided for by the terms of this Agreement or
any other Credit Document, shall itself perform or comply, or otherwise cause
performance or compliance, with such agreement, the expenses of the Pledgee
incurred in connection with such performance or compliance, together with
interest thereon at the rate then in effect in respect of the Loans, shall be
payable by such Pledgor to the Pledgee on demand and shall constitute
Obligations secured by the Collateral. 
Performance of such Pledgor’s obligations as permitted under this Section 13
shall in no way constitute for the purpose of the Cases a violation of the
automatic stay provided by Section 362 of the Bankruptcy Code and each
Pledgor hereby waives applicability thereof. 
Moreover, the Pledgee shall in no way be responsible for the payment of
any costs incurred in connection with preserving or disposing of Collateral
pursuant to Section 506(c) of the Bankruptcy Code and the Collateral
may not be charged for the incurrence of any such cost.

 

14.                                 TRANSFER BY THE PLEDGORS.  No Pledgor will sell or otherwise dispose of,
grant any option with respect to, or mortgage, pledge or otherwise encumber any
of the Collateral or any interest therein (except in accordance with the terms
of this Agreement and the other Credit Documents).

 

14

 

15.                                 REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE PLEDGORS.  (a) Each Pledgor represents, warrants
and covenants that:

 

(i)                                     it is, or at
the time when pledged hereunder will be, the legal, beneficial and record owner
of, and has (or will have) good and marketable title to, all Securities pledged
by it hereunder, subject to no pledge, lien, mortgage, hypothecation, security
interest, charge, option or other encumbrance whatsoever, except (x) the
liens and security interests created by this Agreement and (y) liens in
favor of the Prepetition Agent;

 

(ii)                                  subject to the
entry of the Financing Orders by the Bankruptcy Court, it has full power,
authority and legal right to pledge all the Collateral pledged by it pursuant
to this Agreement;

 

(iii)                               this Agreement
has been duly authorized, executed and delivered by such Pledgor and, subject
to the Financing Orders,  constitutes a
legal, valid and binding obligation of such Pledgor enforceable in accordance
with its terms;

 

(iv)                              except to the
extent already obtained or made and, subject to the entry of the Financing
Orders, no consent of any other party (including, without limitation, any
stockholder, limited or general partner, member or creditor of such Pledgor or
any of its Subsidiaries) and no consent, license, permit, approval or
authorization of, exemption by, notice or report to, or registration, filing or
declaration with, any governmental authority is required to be obtained by such
Pledgor in connection with (a) the execution, delivery or performance of
this Agreement, (b) the validity or enforceability of this Agreement, (c) the
perfection or enforceability of the Pledgee’s security interest in the
Collateral or (d) except for compliance with or as may be required by
applicable securities laws, the exercise by the Pledgee of any of its rights or
remedies provided herein;

 

(v)                                 the execution,
delivery and performance of this Agreement by such Pledgor will not violate any
provision of any applicable law or regulation or of any order, judgment, writ,
award or decree of any court, arbitrator or governmental instrumentality
applicable to such Pledgor, or of the certificate of incorporation, certificate
of formation, by-laws, certificate of limited partnership, partnership
agreement or limited liability company agreement, as the case maybe, of such
Pledgor or of any securities issued by such Pledgor or any of its Subsidiaries,
or of any mortgage, indenture, deed of trust or other material, agreement or
instrument or undertaking to which such Pledgor or any of its Subsidiaries is a
party or which purports to be binding upon such Pledgor or any of its
Subsidiaries or upon any of their respective assets (other than existing
Indebtedness set forth on Annex XI to the Credit Agreement) and will not result
in the creation or imposition of (or the obligation to create or impose) any
lien or encumbrance on any of the assets of such Pledgor or any of its
Subsidiaries except as contemplated by this Agreement;

 

(vi)                              all the shares
of the Stock have been duly and validly issued, are fully paid and
non-assessable and are subject to no options to purchase or similar rights;

 

15

 

(vii)                           each of the
Pledged Notes constitutes, or when executed by the obligor thereof will
constitute, the legal, valid and binding obligation of such obligor,
enforceable in accordance with its terms, except to the extent that the enforceability
thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium or other similar laws generally affecting creditors’ rights and by
equitable principles (regardless of whether enforcement is sought in equity or
at law);

 

(viii)                        subject to the
entry of the Financing Orders by the Bankruptcy Court, it has the unqualified
right to pledge and grant a security interest in the Partnership Interests and
Membership Interests as herein provided without the consent of any other Person,
firm, association or entity which has not been obtained;

 

(ix)                                the Partnership
Interests and the Membership Interests pledged by it pursuant to this Agreement
have been validly acquired and are fully paid for and are duly and validly
pledged hereunder,

 

(x)                                   it is not in
default in the payment of any portion of any mandatory capital contribution, if
any, required to be made under any partnership agreement or limited liability
company agreement to which such Pledgor is a party, and such Pledgor is not in violation
of any other material provisions of any partnership agreement or limited
liability company agreement to which such Pledgor is a party, or otherwise in
default or violation thereunder, no Partnership Interest or Membership Interest
is subject to any defense, offset or counterclaim, nor have any of the
foregoing been asserted or alleged against such Pledgor by any Person with
respect thereto and as of the Closing Date, there are no certificates,
instruments, documents or other writings (other than the partnership agreements
and certificates, if any, delivered to the Collateral Agent) which evidence any
Partnership Interest or Membership Interest of such Pledgor;

 

(xi)                                other than
financing statements pursuant to Liens permitted under Section 7.03 of the
Credit Agreement, there are no currently effective financing statements under
the UCC covering any property which is now or hereafter may be included in the
Collateral and such Pledgor will not, without the prior written consent of the
Pledgee, execute and, until the Termination Date (as hereinafter defined),
there will not ever be on file in any public office, any enforceable financing
statement or statements covering any or all of the Collateral, except financing
statements filed or to be filed in favor of the Pledgee as secured party;

 

(xii)                             it shall give
the Pledgee prompt notice of any written claim relating to the Collateral and
shall deliver to the Pledgee a copy of each other demand, notice or document
received by it which may adversely affect the Pledgee’s interest in the
Collateral promptly upon, but in any event within 10 days after, such Pledgor’
s receipt thereof;

 

(xiii)                          it shall not
withdraw as a partner of any Pledged Partnership or member of any Pledged LLC,
or file or pursue or take any action which may, directly or indirectly, cause a
dissolution or liquidation of or with respect to any Pledged Partnership or 

 

16

 

Pledged
LLC or seek a partition of any property of any Pledged Partnership or Pledged
LLC, except as permitted by the Credit Agreement;

 

(xiv)                         as of the date
hereof, all of its Partnership Interests and Membership Interests are
uncertificated (other than the Membership Interests of Northern New England
Telephone Operations LLC and Fretel Communications, LLC) and each Pledgor
covenants and agrees that it will not approve of any action by any Pledged
Partnership or Pledged LLC to convert such uncertificated interests into
certificated interests;

 

(xv)                            it will take no
action which would violate or be inconsistent with any of the terms of any
Credit Document, or which would have the effect of impairing the position or
interests of the Pledgee or any other Secured Creditor under any Credit
Document except as permitted by the Credit Agreement; and

 

(xvi)                         “control” (as
defined in Section 8-106 of the UCC) has been obtained by the Pledgee over
all of such Pledgor’s Collateral consisting of Securities (including, without
limitation, Notes which are Securities) with respect to which such “control”
may be obtained pursuant to Section 8-106 of the UCC, except to the extent
that the obligation of the applicable Pledgor to provide the Pledgee with “control”
of such Collateral has not yet arisen under this Agreement, provided
that in the case of the Pledgee obtaining “control” over Collateral consisting
of a Security Entitlement, such Pledgor shall have taken all steps in its
control so that the Pledgee obtains “control” over such Security Entitlement.

 

16.                                 PLEDGORS’ OBLIGATIONS ABSOLUTE, ETC.  The obligations of each Pledgor under this
Agreement shall be absolute and unconditional and shall remain in full force
and effect without regard to, and shall not be released, suspended, discharged,
terminated or otherwise affected by, any circumstance or occurrence whatsoever,
including, without limitation:

 

(i)                                     any renewal,
extension, amendment or modification of, or addition or supplement to or
deletion from any of the Credit Documents, or any other instrument or agreement
referred to therein, or any assignment or transfer of any thereof,

 

(ii)                                  any waiver,
consent, extension, indulgence or other action or inaction under or in respect
of any such agreement or instrument or this Agreement;

 

(iii)                               any furnishing
of any additional security to the Pledgee or its assignee or any acceptance
thereof or any release of any security by the Pledgee or its assignee; or

 

(iv)                              any limitation
on any party’s liability or obligations under any such instrument or agreement
or any invalidity or unenforceability, in whole or in part, of any such
instrument or agreement or any term thereof.

 

17.                                 REGISTRATION, ETC.  (a)  Subject to the terms of the
Financing Orders, if an Event of Default shall have occurred and be continuing
and any Pledgor shall have received from the Pledgee a written request or
requests that such Pledgor cause any registration, qualification or compliance
under any Federal or state securities law or laws to be effected with 

 

17

 

respect
to all or any part of the Pledged Stock, such Pledgor as soon as practicable
and at its expense will use its best efforts to cause such registration to be
effected (and be kept effective) and will use its best efforts to cause such
qualification and compliance to be effected (and be kept effective) as may be
so requested and as would permit or facilitate the sale and distribution of
such Pledged Stock, including, without limitation, registration under the
Securities Act, as then in effect (or any similar statute then in effect),
appropriate qualifications under applicable blue sky or other state securities
laws and appropriate compliance with any other governmental requirements, provided
that the Pledgee shall furnish to such Pledgor such information regarding the
Pledgee as such Pledgor may request in writing and as shall be required in
connection with any such registration, qualification or compliance.  Each Pledgor will cause the Pledgee to be
kept reasonably advised in writing as to the progress of each such
registration, qualification or compliance and as to the completion thereof,
will furnish to the Pledgee such number of prospectuses, offering circulars and
other documents incident thereto as the Pledgee from time to time may
reasonably request, and will indemnify, to the extent permitted by law, the
Pledgee, each other Secured Creditor and all others participating in the
distribution of such Pledged Stock against all claims, losses, damages or
liabilities caused by any untrue statement (or alleged untrue statement) of a
material fact contained therein (or in any related registration statement,
notification or the like) or by any omission (or alleged omission) to state
therein (or in any related registration statement, notification or the like) a
material fact required to be stated therein or necessary to make the statements
therein not misleading, except insofar as the same may have been caused by an
untrue statement or omission based upon information furnished in writing to
such Pledgor by the Pledgee or such other Secured Creditor expressly for use
therein.

 

(b)                                 If at any time
when the Pledgee shall determine to exercise its right to sell all or any part
of the Pledged Securities pursuant to Section 7, and such Pledged
Securities or the part thereof to be sold shall not, for any reason whatsoever,
be effectively registered under the Securities Act, as then in effect, the
Pledgee may, in its sole and absolute discretion, sell such Pledged Securities
or part thereof by private sale in such manner and under such circumstances as
the Pledgee may deem necessary or advisable in order that such sale may legally
be effected without such registration. 
Without limiting the generality of the foregoing, in any such event the
Pledgee, in its sole and absolute discretion, (i) may proceed to make such
private sale notwithstanding that a registration statement for the purpose of
registering such Pledged Securities or part thereof shall have been filed under
such Securities Act, (ii) may approach and negotiate with a single
possible purchaser to effect such sale and (iii) may restrict such sale to
a purchaser who will represent and agree that such purchaser is purchasing for
its own account, for investment, and not with a view to the distribution or
sale of such Pledged Securities or part thereof.  In the event of any such sale, the Pledgee
shall incur no responsibility or liability for selling all or any part of the
Pledged Securities at a price which the Pledgee, in its sole and absolute
discretion, may in good faith deem reasonable under the circumstances,
notwithstanding the possibility that a substantially higher price might be
realized if the sale were deferred until the registration as aforesaid.

 

18.                                 TERMINATION; RELEASE.  After the Termination Date (as defined
below), this Agreement shall terminate (provided that all indemnities
set forth herein including, without limitation, in Section 11 hereof shall
survive any such termination) and the Pledgee, at the request and expense of
the Pledgors, will, if requested by the Grantors, execute and deliver to the
Pledgors a proper instrument or instruments acknowledging the satisfaction and
termination 

 

18

 

of
this Agreement as provided above, and will duly assign, transfer and deliver to
such Pledgor (without recourse and without any representation or warranty) such
of the Collateral as may be in the possession of the Pledgee and as has not
theretofore been sold or otherwise applied or released pursuant to this
Agreement, together with any moneys at the time held by the Pledgee hereunder
and, with respect to any Collateral consisting of an Uncertificated Security, a
Partnership Interest or a Membership Interest (other than an Uncertificated
Security, Partnership Interest or Membership Interest credited on the books of
a Clearing Corporation or Securities Intermediary), a termination of the
agreement relating thereto executed and delivered by the issuer of such
Uncertificated Security pursuant to Section 3.5(a)(ii) or by the
respective partnership or limited liability company pursuant to Section 3.5(a)(iv)(2).  As used in this Agreement, “Termination
Date” shall mean the date upon which the Total Revolving Commitment has
been terminated, no Note under the Credit Agreement is outstanding (and all
Loans have been paid in full), all Letters of Credit have been cancelled (or
have expired, undrawn) or collateralized to the satisfaction of the
Administrative Agent and all other Obligations have been paid in full (other
than arising from indemnities for which no request has been made).

 

19.                                 NOTICES, ETC.  All
notices and other communications hereunder shall be in writing (including
telegraphic, telex, telecopier, facsimile or cable communication) and shall be
delivered, telegraphed, telexed, telecopied, faxed, cabled, or mailed (by first
class mail, postage prepaid):

 

(i)                                     if to any
Pledgor, at its address set forth opposite its signature below;

 

(ii)                                  if to the
Pledgee, at:

Bank
of America, N.A.

901 Main Street

Dallas,
TX 75202

Attention:  Garrett Dolt

Fax:  (214) 530-3008

 

(iii)                               if to any
Secured Creditor (other than the Pledgee), either (x) to the
Administrative Agent, at the address of the Administrative Agent specified in
the Credit Agreement or (y) at such address as such Secured Creditor shall
have specified in the Credit Agreement;

 

or
at such other address as shall have been furnished in writing by any Person
described above to the party required to give notice hereunder.

 

20.                                 WAIVER; AMENDMENT.  None
of the terms and conditions of this Agreement may be changed, waived, modified
or varied in any manner whatsoever unless in writing duly signed by the Pledgee
(with the consent of the Required Lenders or, to the extent required by Section 11.11
of the Credit Agreement, all of the Lenders) and each Pledgor affected thereby,
provided that  no such change, waiver, modification or variance
shall be made to Section 9 hereof of this Section 20 without the
consent of each Secured Creditor adversely affected thereby.

 

19

 

21.                                 PLEDGEE NOT BOUND.  (a) Nothing
herein shall be construed to make the Pledgee or any other Secured Creditor
liable as a general partner or limited partner of any Pledged Partnership or a
member of any Pledged LLC, and neither the Pledgee nor any Secured Creditor by
virtue of this Agreement or otherwise (except as referred to in the following
sentence) shall have any of the duties, obligations or liabilities of a general
partner or limited partner of any Pledged Partnership or a member of any
Pledged LLC.  The parties hereto
expressly agree that, unless the Pledgee shall become the absolute owner of a
Partnership Interest or a Membership Interest pursuant hereto, this Agreement
shall not be construed as creating a partnership or joint venture or membership
agreement among the Pledgee, any other Secured Creditor and/or a Pledgor.

 

(b)                                 Except as
provided in the last sentence of paragraph (a) of this Section 21,
the Pledgee, by accepting this Agreement, does not intend to become a general
partner or limited partner of any Pledged Partnership or a member of any
Pledged LLC or otherwise be deemed to be a co-venturer with respect to any
Pledgor or any Pledged Partnership or a member of any Pledged LLC either before
or after an Event of Default shall have occurred.  The Pledgee shall have only those powers set
forth herein and shall assume none of the duties, obligations or liabilities of
a general partner or limited partner of any Pledged Partnership or of a member
of any Pledged LLC or of a Pledgor.

 

(c)                                  The Pledgee
shall not be obligated to perform or discharge any obligation of a Pledgor as a
result of the collateral assignment hereby effected.

 

(d)                                 The acceptance
by the Pledgee of this Agreement, with all the rights, powers, privileges and
authority so created, shall not at any time or in any event obligate the
Pledgee to appear in or defend any action or proceeding relating to the
Collateral to which it is not a party, or to take any action hereunder or
thereunder, or to expend any money or incur any expenses or perform or
discharge any obligation, duty or liability under the Collateral.

 

22.                                 MISCELLANEOUS.  This
Agreement shall create a continuing security interest in the Collateral and
shall (i) remain in full force and effect, subject to termination as set forth
in Section 18, (ii) be binding upon each Pledgor, its successors and
assigns; provided that no Pledgor shall assign any of its rights or
obligations hereunder without the prior written consent of the Pledgee (with
the prior written consent of the Required Lenders or to the extent required by Section 11.11
of the Credit Agreement, all of the Lenders), and (iii) inure, together
with the rights and remedies of the Pledgee hereunder, to the benefit of the
Pledgee, the other Secured Creditors and their respective successors,
transferees and assigns.  The headings of
the several sections and subsections in this Agreement are for purposes of
reference only and shall not limit or define the meaning hereof.  This Agreement may be executed in any number
of counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.  In the
event that any provision of this Agreement shall prove to be invalid or
unenforceable, such provision shall be deemed to be severable from the other
provisions of this Agreement which shall remain binding on all parties hereto.

 

23.                                 GOVERNING LAW, ETC.  (a) THIS AGREEMENT AND THE RIGHTS AND
OBLIGATIONS OF THE SECURED CREDITORS AND OF THE UNDERSIGNED HEREUNDER SHALL BE
GOVERNED BY AND CONSTRUED IN 

 

20

 

ACCORDANCE
WITH THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT
OF LAWS.  Except for matters within the
exclusive jurisdiction of the Bankruptcy Court, any legal action or proceeding
with respect to this Agreement or any other Credit Document may be brought in
the courts of the State of New York or of the United States of America for the
Southern District of New York, and, by execution and delivery of this
Agreement, each NSG Pledgor hereby irrevocably accepts for itself and in
respect of its property, generally and unconditionally, the jurisdiction of the
aforesaid courts.  Each NSG Pledgor
further irrevocably consents to the service of process out of any of the
aforementioned courts in any such action or proceeding by the mailing of copies
thereof by registered or certified mail, postage prepaid, to each NSG Pledgor
at its address set forth opposite its signature below, such service to become
effective 30 days after such mailing. 
Nothing herein shall affect the right of any of the Secured Creditors to
serve process in any other manner permitted by law or to commence legal
proceedings or otherwise proceed against any Pledgor in any other jurisdiction.

 

(b)                                 Except for
matters within the exclusive jurisdiction of the Bankruptcy Court, each NSG
Pledgor hereby irrevocably waives any objection which it may now or hereafter
have to the laying of venue of any of the aforesaid actions or proceedings
arising out of or in connection with this Agreement or any other Credit
Document brought in the courts referred to in clause (a) above and hereby
further irrevocably waives and agrees not to plead or claim in any such court
that such action or proceeding brought in any such court has been brought in an
inconvenient forum.

 

(c)                                  EACH PLEDGOR
AND THE PLEDGEE HEREBY IRREVOCABLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY
ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY.

 

24.                                 COUNTERPARTS.  This
Agreement may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together constitute one
and the same instrument.  A set of
counterparts executed by all the parties hereto shall be lodged with each
Pledgor and the Pledgee.

 

25.                                 CONTRIBUTION.  At any time
a payment is made by any Pledgor (other than a Borrower) (each, a “Subsidiary
Pledgor”) in respect of the Obligations from the proceeds of any sale or
other disposition of Collateral owned by such Subsidiary Pledgor (each, a “Relevant
Payment”), the right of contribution of each Subsidiary Pledgor hereunder
against each other such Subsidiary Pledgor shall be determined as provided in
the immediately following sentence, with the right of contribution of each
Subsidiary Pledgor to be revised and restated as of each date on which a
Relevant Payment is made.  At any time
that a Relevant Payment is made by a Subsidiary Pledgor that results in the
aggregate payments made by such Subsidiary Pledgor hereunder in respect of the
Obligations to and including the date of the Relevant Payment exceeding such
Subsidiary Pledgor’s Contribution Percentage (as defined below) of the
aggregate payments made by all Subsidiary Pledgors hereunder in respect of the
Obligations from the proceeds of any sale or other disposition of Collateral
owned by the Subsidiary 

 

21

 

Pledgors
to and including the date of the Relevant Payment (such excess, the “Aggregate
Excess Amount”), each such Subsidiary Pledgor shall have a right of
contribution against each other Subsidiary Pledgor who either has not made any
payments or has made (or whose Collateral has been used to make) payments
hereunder in respect of the Obligations to and including the date of the
Relevant Payment in an aggregate amount less than such other Subsidiary Pledgor’s
Contribution Percentage of the aggregate payments made to and including the
date of the Relevant Payment by all Subsidiary Pledgors hereunder in respect of
the Obligations from the proceeds of any sale or other disposition of
Collateral owned by the Subsidiary Pledgors (the aggregate amount of such
deficit, the “Aggregate Deficit Amount”) in an amount equal to (x) a
fraction the numerator of which is the Aggregate Excess Amount of such
Subsidiary Pledgor and the denominator of which is the Aggregate Excess Amount
of all Subsidiary Pledgors multiplied by (y) the Aggregate Deficit Amount
of such other Subsidiary Pledgor.  A
Subsidiary Pledgor’s right of contribution pursuant to the preceding sentences
shall arise at the time of each computation, subject to adjustment to the time
of any subsequent computation; provided, that no Subsidiary Pledgor may
take any action to enforce such right until the Obligations have been paid in
full and the Total Commitment has been terminated, it being expressly
recognized and agreed by all parties hereto that any Subsidiary Pledgor’s right
of contribution arising pursuant to this Agreement against any other Subsidiary
Pledgor shall be expressly junior and subordinate to such other Subsidiary
Pledgor’s obligations and liabilities in respect of the Obligations and any
other obligations owing under this Agreement. 
As used in this Section 25:  (i) each
Subsidiary Pledgor’s “Contribution Percentage” shall mean the percentage
obtained by dividing (x) the Adjusted Net Worth (as defined below) of such
Subsidiary Pledgor by (y) the aggregate Adjusted Net Worth of all
Subsidiary Pledgors; (ii) the “Adjusted Net Worth” of each
Subsidiary Pledgor shall mean the greater of (x) the Net Worth (as defined
below) of such Subsidiary Pledgor and (y) zero; and (iii) the “Net
Worth” of each Subsidiary Pledgor shall mean the amount by which the fair
salable value of such Subsidiary Pledgor’s assets on the date of any Relevant
Payment exceeds its existing debts and other liabilities (including contingent
liabilities, but without giving effect to any obligations arising under this
Agreement, any Guaranteed Obligations under, and as defined in, the Subsidiary
Guaranty) on such date.  All parties
hereto recognize and agree that, except for any right of contribution arising
pursuant to this Section 25, each Subsidiary Pledgor who makes (or whose
Collateral has been used to make) any payment in respect of the Obligations
shall have no right of contribution or subrogation against any other Subsidiary
Pledgor in respect of such payment.  Each
of the Subsidiary Pledgors recognizes and acknowledges that the rights to
contribution arising hereunder shall constitute an asset in favor of the party
entitled to such contribution.  In this
connection, each Subsidiary Pledgor has the right to waive its contribution
right against any Subsidiary Pledgor to the extent that after giving effect to
such waiver such Subsidiary Pledgor would remain solvent, in the determination
of the Required Lenders.

 

26.                                 LEGAL NAMES; TYPE OF ORGANIZATION (AND WHETHER A REGISTERED
ORGANIZATION AND/OR A TRANSMITTING UTILITY); 
JURISDICTION OF ORGANIZATION; LOCATION; ORGANIZATIONAL IDENTIFICATION
NUMBERS; CHANGES THERETO; ETC.  No Pledgor shall change its legal name, its
type of organization, its status as a Registered Organization (in the case of a
Registered Organization), its status as a Transmitting Utility or as a Person
which is not a Transmitting Utility, as the case may be, its jurisdiction of
organization or its organizational identification number (if any).  In addition, to the extent that any Pledgor
does not have an organizational identification number on the date 

 

22

 

hereof
and later obtains one, such Pledgor shall promptly thereafter deliver a
notification of the Collateral Agent of such organizational identification
number and shall take all actions reasonably satisfactory to the Collateral
Agent to the extent necessary to maintain the security interest of the
Collateral Agent in the Collateral intended to be granted hereby fully
perfected and in full force and effect.

 

27.                                 CHANGE OF CONTROL.The Pledgee
acknowledges that (i) certain of the Collateral consists of Securities
issued by Persons subject to regulation by the FCC and/or the PUC (the “Regulated
Securities Collateral”) and (ii) to the extent (and only to the extent)
that applicable law requires that Pledgee first obtain the consent of the FCC
and/or the PUC prior to foreclosing on and/or transferring any of the Regulated
Securities Collateral, the Pledgee agrees that it will obtain such consent
prior to effecting such remedies.

 

28.                                 SEVERABILITY.  Any
provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

29.                                 HEADINGS DESCRIPTIVE.  The headings of the several Sections of this
Agreement are inserted for convenience only and shall not in any way affect the
meaning or construction of any provision of this Agreement.

 

*  
*   *   *

 

23

 

[SIGNATURE PAGES OMITTED]Exhibit 10.9

 

 

 

DEBTOR-IN-POSSESSION SECURITY AGREEMENT

 

By

 

FAIRPOINT COMMUNICATIONS, INC.,

 

and

 

ITS SUBSIDIARIES PARTY HERETO,

as Grantors,

 

and

 

BANK OF AMERICA, INC.,

as Collateral Agent

 

 

Dated as of October 30, 2009

 

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  DEFINITIONS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 1.01.

  	
  Uniform
  Commercial Code Defined Terms

  	
  2

  
	
  SECTION 1.02.

  	
  Credit
  Agreement Defined Terms

  	
  2

  
	
  SECTION 1.03.

  	
  Definition
  of Certain Terms Used Herein

  	
  2

  
	
  SECTION 1.04.

  	
  Rules of
  Construction

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  AUTHORITY OF COLLATERAL AGENT

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 2.01.

  	
  General
  Authority of the Collateral Agent over the Collateral

  	
  6

  
	
  SECTION 2.02.

  	
  Remedies
  Not Exclusive

  	
  7

  
	
  SECTION 2.03.

  	
  Waiver
  and Estoppel

  	
  7

  
	
  SECTION 2.04.

  	
  Limitation
  on Collateral Agents’ Duty in Respect of Collateral

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  
	
  SECURITY INTERESTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
  Security
  Interests

  	
  8

  
	
  SECTION 3.02.

  	
  Perfection
  and Priority

  	
  9

  
	
  SECTION 3.03.

  	
  Claim
  Priorities

  	
  9

  
	
  SECTION 3.04.

  	
  Modifications

  	
  10

  
	
  SECTION 3.05.

  	
   

  	
  10

  
	
  SECTION 3.06.

  	
  No
  Assumption of Liability

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  REPRESENTATIONS AND WARRANTIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 4.01.

  	
  Title
  and Authority

  	
  11

  
	
  SECTION 4.02.

  	
  Validity
  of Security Interest

  	
  11

  
	
  SECTION 4.03.

  	
  Limitations
  on and Absence of Other Liens

  	
  11

  
	
  SECTION 4.04.

  	
  Jurisdiction
  of Organization

  	
  11

  
	
  SECTION 4.05.

  	
  Instruments
  and Tangible Chattel Paper

  	
  11

  
	
  SECTION 4.06.

  	
  Deposit
  Accounts and Investment Property

  	
  12

  
	
  SECTION 4.07.

  	
  Real
  Estate Interests

  	
  12

  

 

i

 

	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  COVENANTS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
  Protection
  of Security

  	
  13

  
	
  SECTION 5.03.

  	
  Taxes;
  Encumbrances

  	
  13

  
	
  SECTION 5.04.

  	
  Assignment
  of Security Interest

  	
  14

  
	
  SECTION 5.05.

  	
  Continuing
  Obligations of the Grantors

  	
  14

  
	
  SECTION 5.06.

  	
  Use
  and Disposition of Collateral

  	
  14

  
	
  SECTION 5.07.

  	
  Limitation
  on Modification of Accounts

  	
  14

  
	
  SECTION 5.08.

  	
  Insurance

  	
  14

  
	
  SECTION 5.09.

  	
  Certain
  Covenants and Provisions Regarding Patent, Trademark and Copyright Collateral

  	
  14

  
	
  SECTION 5.10.

  	
  Other
  Actions

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  REMEDIES

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 6.01.

  	
  Remedies
  upon Default

  	
  19

  
	
  SECTION 6.02.

  	
  Application
  of Proceeds

  	
  21

  
	
  SECTION 6.03.

  	
  Grant
  of License to Use Intellectual Property

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
  Notices

  	
  22

  
	
  SECTION 7.02.

  	
  Survival
  of Agreement

  	
  22

  
	
  SECTION 7.03.

  	
  Binding
  Effect

  	
  22

  
	
  SECTION 7.04.

  	
  Successors
  and Assigns

  	
  23

  
	
  SECTION 7.05.

  	
  GOVERNING
  LAW

  	
  23

  
	
  SECTION 7.06.

  	
  Waivers;
  Amendment; Several Agreement

  	
  23

  
	
  SECTION 7.07.

  	
  Severability

  	
  24

  
	
  SECTION 7.08.

  	
  Counterparts

  	
  24

  
	
  SECTION 7.09.

  	
  Headings

  	
  24

  
	
  SECTION 7.10.

  	
  Termination

  	
  24

  
	
  SECTION 7.11.

  	
  Financing
  Statements

  	
  24

  
	
  SECTION 7.12.

  	
  Collateral
  Agent Appointed Attorney-in-Fact

  	
  25

  

 

ii

 

	
  ANNEXES

  	
   

  
	
   

  	
   

  	
   

  
	
  Annex
  I

  	
  Form of
  Issuer Acknowledgement

  	
   

  
	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule
  1

  	
  Copyrights

  	
   

  
	
  Schedule
  2

  	
  Licenses

  	
   

  
	
  Schedule
  3

  	
  Patents

  	
   

  
	
  Schedule
  4

  	
  Trademarks

  	
   

  
	
  Schedule
  5

  	
  Commercial
  Tort Claims

  	
   

  
	
  Schedule
  6

  	
  Jurisdiction
  of Organization

  	
   

  
	
  Schedule
  7

  	
  Deposit
  Accounts

  	
   

  
	
  Schedule
  8

  	
  Securities
  and Commodities Accounts

  	
   

  
	
  Schedule
  9

  	
  Real
  Estate Interests

  	
   

  

 

iii

 

DEBTOR-IN-POSSESSION
SECURITY AGREEMENT

 

This  DEBTOR-IN-POSSESSION SECURITY AGREEMENT (as
amended, amended and restated, supplemented or otherwise modified from time to
time, this “Agreement”), dated as of October 30, 2009 among
FAIRPOINT COMMUNICATIONS, INC., a Delaware corporation and a debtor and
debtor-in-possession under Chapter 11 of the Bankruptcy Code (as defined in the
Credit Agreement referred to below)  (“FairPoint”),
FairPoint Logistics, Inc., a South Dakota corporation and a debtor and
debtor-in-possession under Chapter 11 of the Bankruptcy Code (“FairPoint
Logistics”; and together with FairPoint, each a “Borrower” and
collectively the “Borrowers”), each Subsidiary of FairPoint listed on the
signature pages hereto, each a debtor and debtor-in-possession under
Chapter 11 of the Bankruptcy Code 
(together with the Borrowers, the “Grantors”) and BANK OF
AMERICA, N.A., as Collateral Agent (in such capacity, and together with any
successors and assigns in such capacity, the “Collateral Agent”) for the
benefit of the Secured Creditors (as defined below).

 

R E C I T A L S

 

WHEREAS,
the Borrowers and each of the other Grantors have filed in the United States
Bankruptcy Court for the Southern District of New York (the “Bankruptcy
Court”) a voluntary petition for relief under Chapter 11 of the Bankruptcy
Code and have continued in the possession of their assets and in the management
of their businesses pursuant to Sections 1107 and 1108 of the Bankruptcy Code,
and such reorganization cases are being jointly administered under Case Number
09-16335-brl (the “Cases”).

 

WHEREAS,
the Borrowers, the lenders from time to time party thereto (the “Lenders”)
and Bank of America, N.A., as Administrative Agent, have entered into a
Debtor-In-Possession Credit Agreement, dated as of October 27, 2009 (as
amended, modified, restated and/or supplemented from time to time, the “Credit
Agreement”), providing for the making of Loans to, and the issuance of, and
participation in, Letters of Credit for the account of the Borrowers and/or one
or more of their Subsidiaries, all as contemplated therein (the Lenders, the
Letter of Credit Issuer, the Administrative Agent, the Collateral Agent and the
Pledgee referred to in the Pledge Agreement are herein called the “Secured
Creditors”).

 

WHEREAS,
it is a condition precedent to the making of Loans and the issuance of, and
participation in, Letters of Credit under the Credit Agreement that each
Grantor shall have executed and delivered to the Collateral Agent this
Agreement.

 

WHEREAS,
each Grantor desires to execute this Agreement to satisfy the condition described
in the preceding paragraph.

 

NOW
THEREFORE, in consideration of the foregoing and other benefits accruing each
Grantor, the receipt and sufficiency of which are hereby acknowledged, each
Grantor hereby makes the following representations and warranties to the
Collateral Agent for the benefit of the Secured Creditors and hereby covenants
and agrees with the Collateral Agent (for the benefit of the Secured
Creditors), as follows:

 

 

ARTICLE
I

DEFINITIONS

 

SECTION 1.01.                 Uniform
Commercial Code Defined Terms.  Unless otherwise defined herein, terms used
herein that are defined in the UCC shall have the meanings assigned to them in
the UCC, including the following which are capitalized herein:

 

“Accounts”;
“Bank”; “Certificates of Title”; “Chattel Paper”; “Commercial
Tort Claim”; “Commodity Account”; “Commodity Contract”; “Commodity
Customer”; “Commodity Intermediary”; “Deposit Accounts”; “Documents”;
“Electronic Chattel Paper”; “Entitlement Holder”; “Entitlement
Order”; “Equipment”; “Financial Asset”; “Fixtures”; “Goods”;
“Instruments” (as defined in Article 9 rather than Article 3);
“Inventory”; “Investment Property”; “Letter-of-Credit Rights”;
“Letters of Credit”; “Securities”; “Securities Account”; “Securities
Intermediary”; “Security Entitlement”; “Supporting Obligations”;
and “Tangible Chattel Paper”.

 

SECTION 1.02.                 Credit
Agreement Defined Terms. 
Capitalized terms used but not otherwise defined herein that are defined
in the Credit Agreement shall have the meanings given to them in the Credit
Agreement.

 

SECTION 1.03.                 Definition
of Certain Terms Used Herein.  As used herein, the following terms shall
have the following meanings:

 

“Account
Debtor” shall mean any Person who is or who may become obligated to any
Grantor under, with respect to or on account of an Account.

 

“Accounts
Receivable” shall mean all Accounts and all right, title and interest in
any returned goods, together with all rights, titles, securities and guarantees
with respect thereto, including any rights to stoppage in transit,
replevin, reclamation and resales, and all related security interests, liens
and pledges, whether voluntary or involuntary, in each case whether now existing
or owned or hereafter arising or acquired.

 

“Bankruptcy
Court” shall have the meaning assigned to such term in the Recitals of this
Agreement.

 

“Books
and Records” shall mean all instruments, files, records, ledger sheets and
documents evidencing, covering or relating to any of the Collateral.

 

“Borrowers”
shall have the meaning assigned to such term in the introductory paragraph of
this Agreement.

 

“Cases”
shall have the meaning assigned to such term in the Recitals of this Agreement.

 

“Charges”
shall mean any and all property and other taxes, assessments and special assessments,
levies, fees and all governmental charges imposed upon or assessed against, and
all claims (including, without limitation, landlords’, carriers’, mechanics’,
maritime, workmen’s, 

 

2

 

repairmen’s, laborers’, materialmen’s, suppliers’ and
warehousemen’s Liens and other claims arising by operation of law) against, all
or any portion of the Collateral.

 

“Collateral
Agent” shall have the meaning assigned to such term in the introductory paragraph
of this Agreement.

 

“Collateral
Estate” shall have the meaning assigned to such term in Section 2.01(c).

 

“Commodity
Account Control Agreement” shall mean an agreement in form and substance
reasonably satisfactory to the Collateral Agent establishing the Collateral
Agent’s Control with respect to a Commodity Account.

 

“Control”
shall mean (i) in the case of each Deposit Account, “control,” as such
term is defined in Section 9-104 of the UCC, (ii) in the case of any
Security Entitlement, “control,” as such term is defined in Section 8-106(d) of
the UCC, and (iii) in the case of any Commodity Contract, “control,” as
such term is defined in Section 9-106(b) of the UCC.

 

“Control
Agreement” shall mean, collectively, the Deposit Account Control
Agreements, the Securities Account Control Agreements and the Commodity Account
Control Agreements.

 

“Copyright License” shall mean each
agreement, now or hereafter in effect, granting any right to any third party
under any Copyright now or hereafter owned by any Grantor or which such Grantor
otherwise has the right to license, or granting any right to such Grantor under
any Copyright now or hereafter owned by any third party, and all rights of such
Grantor under any such agreement.

 

“Copyrights”
shall mean, collectively, with respect to each Grantor, all copyrights (whether
statutory or common law, whether registered or unregistered and whether
published or unpublished) and all copyright registrations and applications made
by such Grantor in the United States, in each case, whether now owned or
hereafter created or acquired by or assigned to such Grantor, including,
without limitation, the copyrights, registrations and applications listed in Schedule
1 to this Agreement, together with any and all (i) rights and
privileges arising under applicable law with respect to such Grantor’s use of
such copyrights, (ii) reissues, renewals, continuations and extensions
thereof, (iii) income, fees, royalties, damages, claims and payments now
or hereafter due and/or payable with respect thereto, including, without
limitation, damages and payments for past, present or future infringements
thereof and (iv) rights to sue for past, present or future infringements
thereof.

 

“Credit
Agreement” shall have the meaning assigned to such term in the Recitals of
this Agreement.

 

“Deposit
Account Control Agreement” shall mean an agreement that is in form and substance
reasonably satisfactory to the Collateral Agent establishing the Collateral
Agent’s Control with respect to any Deposit Account.

 

“General
Intangibles” shall mean, collectively, all “general intangibles,” as such
term is defined in the UCC, and in any event shall include, without limitation,
all choses in action and causes of action and all other intangible personal
property of any Grantor of every kind and nature

 

3

 

now owned or hereafter acquired by any Grantor,
including all rights and interests in partnerships, limited partnerships,
limited liability companies and other unincorporated entities, corporate or
other business records, indemnification claims, contract rights (including
rights under leases, whether entered into as lessor or lessee, and other
agreements), Intellectual Property, goodwill, registrations, franchises and tax
refund claims.

 

“Intellectual
Property” shall mean all intellectual property of every kind and nature now
owned in the United States by a Grantor, or hereafter acquired by any Grantor,
including inventions, designs, Patents, Copyrights, Licenses, Trademarks, trade
secrets, confidential or proprietary technical and business information,
know-how or other confidential or proprietary data or information, software and
databases.

 

“Lenders”
shall have the meaning assigned to such term in the Recitals of this Agreement.

 

“License”
shall mean any United States Patent License, Trademark License or Copyright
License or other United States license or sublicense in respect of Intellectual
Property to which any Grantor is a party including, without limitation, those
listed on Schedule 2 to this Agreement.

 

“Patent
License” shall mean any agreement, now or hereafter in effect, granting to
any third party any right to make, use or sell any invention covered by a
Patent, now or hereafter owned by any Grantor or which any Grantor otherwise
has the right to license, or granting to any Grantor any right to make, use or
sell any invention a Patent, now or hereafter owned by any third party, and all
rights of any Grantor under any such agreement.

 

“Patents” shall mean all of the following now
owned or hereafter acquired in the United States by a Grantor:  (a) all letters patent and all
applications for letters patent, including registrations, recordations and
pending applications in the United States Patent and Trademark Office,
including those listed on Schedule 3 to this Agreement, and (b) all
reissues, continuations, divisions, continuations-in-part, renewals or
extensions thereof, and the inventions disclosed or claimed therein, including
the right to make, use and/or sell the inventions disclosed or claimed therein.

 

“Permit”
shall mean any permit, approval, authorization, license, variance or permission
required from a governmental authority under an applicable law.

 

“Pledge
Agreement” means the Debtor-In-Possession Pledge Agreement, dated as of the
date hereof, made by FairPoint and certain of its Subsidiaries party thereto in
favor of the Collateral Agent, as the same may be amended, restated,
supplemented or otherwise modified from time to time.

 

“Pledge
Agreement Collateral” shall “Collateral” under and as defined in the Pledge
Agreement.

 

“Proceeds”
shall mean, collectively, all “proceeds,” as such term is defined in the UCC,
and in any event shall include, without limitation, any consideration received
from the sale, exchange, license, lease or other disposition of any asset or
property that constitutes Collateral, any 

 

4

 

value received as a consequence of the possession of
any Collateral and any payment received from any insurer or other Person or
entity as a result of the destruction, loss, theft, damage or other involuntary
conversion of whatever nature of any asset or property that constitutes Collateral,
and shall include (a) all cash and negotiable instruments received by or
held on behalf of the Collateral Agent, (b) any claim of any Grantor
against any third party for (and the right to sue and recover for and the
rights to damages or profits due or accrued arising out of or in connection
with) (i) past, present or future infringement of any Patent now or
hereafter owned by any Grantor, or licensed under a Patent License, (ii) past,
present or future infringement or dilution of any Trademark now or hereafter
owned by any Grantor or licensed under a Trademark License or injury to the
goodwill associated with or symbolized by any Trademark now or hereafter owned
by any Grantor, (iii) past, present or future breach of any License and (iv) past,
present or future infringement of any Copyright now or hereafter owned by any
Grantor or licensed under a Copyright License and (c) any and all other
amounts from time to time paid or payable under or in connection with any of
the Collateral.

 

“Real Estate Interests” means,
with respect to a Grantor, all Real Property Owned and all Real Property
Leaseholds, whether now owned or held, or hereafter acquired.

 

“Real Property Leaseholds” means
all leases now or hereafter owned or held by a Grantor, of real property
whether improved or unimproved and all rights, interests and estates, real and
personal, arising under or in connection with such leases and such real
property, including without limitation all buildings and all personal property
and fixtures included under such leases.

 

“Real Property Owned” means all
parcels of land now or hereafter owned by a Grantor, together with the right,
title and interest of such Grantor in and to adjacent streets, the air space
and development rights, all rights of way, privileges, tenements, hereditaments
and appurtenances thereto, and fixtures, easements, all royalties and rights
pertaining to the use of the real property, including, without limitation, all
alleys, vaults and drainage together with all buildings and other improvements
now or hereafter erected thereon and all fixtures and personal property
appertaining thereto and all additions thereto and all substitutions and
replacements thereof.

 

“Secured
Creditors” shall have the meaning assigned to such term in the Recitals of
this Agreement.

 

“Securities
Account Control Agreement” shall mean an agreement in form and substance
reasonably satisfactory to the Collateral Agent establishing the Collateral
Agent’s Control with respect to any Securities Account.

 

“Security
Interests” shall  mean the Liens and
security interests granted in Section 3.01 of this Agreement to secure the
Obligations.

 

“Trademark
License” shall mean any agreement, now or hereafter in effect, granting to
any third party any right to use any Trademark now or hereafter owned by any
Grantor or that any Grantor otherwise has the right to license, or granting to
any Grantor any right to use any Trademark now or hereafter owned by any third
party, and all rights of any Grantor under any such agreement.

 

5

 

“Trademarks”
shall mean all of the following now owned or hereafter acquired in the United
States by a Grantor:  (a) all
trademarks, service marks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, trade dress, logos, other
source or business identifiers, designs and general intangibles of like nature,
now existing or hereafter adopted or acquired, all registrations and
recordations thereof, and all applications filed in connection therewith,
including registrations and registration applications in the United States
Patent and Trademark Office or any State of the United States, and all
extensions or renewals thereof, including those listed on Schedule 4
to this Agreement and, (b) all goodwill associated therewith or symbolized
thereby.

 

“UCC”
shall mean the Uniform Commercial Code as in effect from time to time in the
State of New York; provided, however, that if by reason of mandatory
provisions of law, any or all of the attachment, perfection or priority of the
Collateral Agent’s and the Secured Creditors’ security interest in any item or
portion of the Collateral is governed by the Uniform Commercial Code as in
effect in a jurisdiction other than the State of New York, the term “UCC”
shall mean the Uniform Commercial Code as in effect on the date hereof in such
other jurisdiction for purposes of the provisions hereof relating to such
attachment, perfection or priority and for purposes of definitions relating to
such provisions.

 

SECTION 1.04.                 Rules of
Construction.  Unless the
context otherwise requires:

 

(1)                                  a term has the
meaning assigned to it;

 

(2)                                  an accounting
term not otherwise defined has the meaning assigned to it in accordance with
GAAP;

 

(3)                                  “or” is not
exclusive;

 

(4)                                  words in the
singular include the plural, and in the plural include the singular;

 

(5)                                  where the
context requires, provisions relating to any Collateral, when used in relation
to a Grantor, shall refer to such Grantor’s Collateral or any relevant part
thereof.

 

ARTICLE
II

AUTHORITY OF COLLATERAL AGENT

 

SECTION 2.01.                 General
Authority of the Collateral Agent over the Collateral.  The Collateral Agent hereby agrees that it
holds and will hold all of its right, title and interest in, to and under this
Agreement and the Collateral granted to the Collateral Agent hereunder whether
now existing or hereafter arising (all such right, title and interest being
hereinafter referred to as the “Collateral Estate”) under and subject to
the conditions set forth in this Agreement; and the Collateral Agent further agrees
that it will hold such Collateral Estate for the benefit of the Secured
Creditors, for the enforcement of the payment of all Obligations (subject to
the limitations and priorities set forth herein and in the Financing Orders)
and as security for the performance of 

 

6

 

and
compliance with the covenants and conditions of this Agreement and each of the
Credit Documents.

 

SECTION 2.02.                 Remedies
Not Exclusive No remedy conferred upon or reserved to the Collateral
Agent herein or in the other Credit Documents is intended to be exclusive of
any other remedy or remedies, but every such remedy shall be cumulative and
shall be in addition to every other remedy conferred herein or in any other
Credit Document or now or hereafter existing at law or in equity or by statute.

 

No
delay or omission by the Collateral Agent to exercise any right, remedy or
power hereunder or under any other Credit Document shall impair any such right,
remedy or power or shall be construed to be a waiver thereof, and every right,
power and remedy given by this Agreement or any Credit Document to the
Collateral Agent may be exercised from time to time and as often as may be
deemed expedient by the Collateral Agent.

 

If the
Collateral Agent shall have proceeded to enforce any right, remedy or power
under this Agreement or under any other Credit Document and the proceeding for
the enforcement thereof shall have been discontinued or abandoned for any
reason or shall have been determined adversely to the Collateral Agent, then
the Grantors, the Collateral Agent and the other Secured Creditors shall,
subject to any determination in such proceeding, severally and respectively be
restored to their former positions and rights hereunder or thereunder with
respect to the Collateral Estate and in all other respects, and thereafter all
rights, remedies and powers of the Collateral Agent shall continue as though no
such proceeding had been taken.

 

SECTION 2.03.                 Waiver
and Estoppel.  Subject to
the terms of the Credit Documents, each Grantor agrees, to the extent it may lawfully
do so, that it will not at any time in any manner whatsoever claim, or take the
benefit or advantage of, any appraisement, valuation, stay, extension,
moratorium, turnover or redemption law, or any law permitting it to direct the
order in which the Collateral shall be sold, now or at any time hereafter in
force, which may delay, prevent or otherwise affect the performance or enforcement
of this Agreement or any Credit Document and hereby waives all benefit or
advantage of all such laws and covenants that it will not hinder, delay or
impede the execution of any power granted to the Collateral Agent in this
Agreement or any Credit Document but will suffer and permit the execution of
every such power as though no such law were in force.

 

Each
Grantor, to the extent it may lawfully do so, on behalf of itself and all who
may claim through or under it, including without limitation any and all
subsequent creditors, vendees, assignees and licensors, waives and releases all
rights to demand or to have any marshaling of the Collateral upon any sale,
whether made under any power of sale granted herein or in any other Credit
Document or pursuant to judicial proceedings or upon any foreclosure or any enforcement
of this Agreement or any Credit Document and consents and agrees that all the
Collateral may at any such sale be offered and sold as an entirety.

 

Each Grantor waives, to the
extent permitted by applicable law, presentment, demand, protest and any notice
of any kind (except notices explicitly required hereunder or under any Credit
Document or the Financing Orders) in connection with this Agreement and the
other Credit Documents and any action taken by the Collateral Agent with
respect to the Collateral.

 

7

 

SECTION 2.04.                 Limitation
on Collateral Agents’ Duty in Respect of Collateral.  Beyond its duties as to the custody thereof
expressly provided herein or in any other Credit Document and to account to the
Secured Creditors and the Grantors for moneys and other property received by it
hereunder or under any Credit Document and any other express duties specified
in the Credit Documents, the Collateral Agent shall have no duty to the
Grantors or to the Secured Creditors as to any Collateral in its possession or
control or in the possession or control of any of its agents or nominees, or
any income thereon or as to the preservation of rights against prior parties or
any other rights pertaining thereto. In addition, the Collateral Agent shall in
no way be responsible for the payment of any costs incurred in connection with
preserving or disposing of Collateral pursuant to Section 506(c) of
the Bankruptcy Code and the Collateral may not be charged for the incurrence of
any such cost.

 

ARTICLE
III

SECURITY INTERESTS

 

SECTION 3.01.                 Security
InterestsAs security for the payment and performance, as the
case may be, in full of the Obligations, each Grantor hereby sells, conveys,
assigns, sets over, mortgages, pledges, hypothecates and transfers to the
Collateral Agent, for the ratable benefit of the Secured Creditors, and hereby
grants to the Collateral Agent, for the ratable benefit of the Secured Creditors,
a security interest in, all of such Grantor’s right, title and interest in, to
and under the following property, together with the Real Estate Interests and
all other property or interests therein covered by any of the Financing Orders,
wherever located, and whether now existing or hereafter arising or acquired
from time to time (the “Collateral”):(a) Accounts Receivable;

 

(b)                                 Books and
Records;

 

(c)                                  cash and
Deposit Accounts;

 

(d)                                 Chattel Paper;

 

(e)                                  Commercial Tort
Claims described on Schedule 5 to this Agreement;

 

(f)                                    Documents;

 

(g)                                 Equipment;

 

(h)                                 Fixtures;

 

(i)                                     General
Intangibles;

 

(j)                                     Goods;

 

(k)                                  Instruments;

 

(l)                                     Inventory;

 

(m)                               Investment
Property;

 

8

 

(n)                                 Letter-of-Credit
Rights;

 

(o)                                 Letters of
Credit;

 

(p)                                 Supporting
Obligations;

 

(q)                                 Intellectual
Property;

 

(r)                                    to the extent
not covered by clauses (a) through (r) of this definition, all
other personal property, whether tangible or intangible; and

 

(s)                                  all Proceeds
and products of any and all of the foregoing and all accessions to,
substitutions and replacements for, and rents, profits and products of, each of
the foregoing, and any and all Proceeds of any insurance, indemnity, warranty
or guaranty payable to such Grantor from time to time with respect to any of
the foregoing;

 

provided that,
notwithstanding the foregoing, “Collateral” shall not include (i) Pledge
Agreement Collateral or any equity interests in an Excluded Entity (as defined
in the Pledge Agreement), (ii) any Causes of Action (as defined in the
Financing Orders) but, subject to the entry of the Final Order, the Collateral
shall include any Proceeds or property recovered in respect of any Causes of
Action and (iii) FCC licenses and PUC authorizations to the extent (and
only to the extent) that any Grantor is prohibited from granting a lien and
security interest therein pursuant to applicable law, but the Collateral shall
include, to the maximum extent permitted by law, all rights incident or
appurtenant to all FCC licenses and PUC authorizations and the right to receive
all proceeds derived from or in connection with the sale, assignment or
transfer of such FCC licenses and PUC authorizations.

 

SECTION 3.02.                 Perfection
and Priority.  Upon the
entry of the Interim Order and the Final Order, as applicable, all Liens and
security interests granted to the Collateral Agent hereunder shall constitute
valid and perfected Liens on all of the Collateral having the priority
specified therein and shall automatically, and without further action by any
Person, perfect such Liens and security interests against the Collateral; provided,
however, nothing herein shall prevent the Collateral Agent, from otherwise
perfecting, maintaining, protecting or enforcing the Liens and security
interests in the Collateral granted hereunder. Notwithstanding any failure on
the part of any Grantor to take any action required by this Agreement, or
perform or fulfill any of the obligations of such Grantor under or pursuant to
this Agreement, the Liens and security interests granted herein shall be deemed
valid, enforceable and perfected by entry of each Financing Order.  No financing statement, notice of lien,
mortgage, deed of trust or similar instrument in any jurisdiction or filing
office need be filed or any other action taken in order to validate and perfect
the Liens and security interest granted by or pursuant to this Agreement or the
Financing Orders.

 

SECTION 3.03.                 Claim
Priorities.  All
Obligations shall constitute, in accordance with Section 364(c)(1) of
the Bankruptcy Code, claims against each Grantor in its Case that are administrative
expense claims having priority over any and all administrative expenses of the
kind specified in Sections 503(b) or 507(b) of the Bankruptcy Code,
subject only to the Carve-Out.

 

9

 

SECTION 3.04.                 Modifications.

 

(a)                                  The Liens, lien priority,
administrative priorities and other rights and remedies granted to the
Collateral Agent pursuant to this Agreement and the Financing Orders (including
the existence, perfection and priority of the Liens provided herein and therein
and the administrative priority provided herein and therein) shall not be
modified, altered or impaired in any manner by any other financing or extension
of credit or incurrence of any Indebtedness by any of the Grantors (pursuant to
Section 364 of the Bankruptcy Code or otherwise), or by any dismissal or
conversion of any Case, or by any other act or omission whatsoever.  Without limitation, notwithstanding any such
order, financing, extension, incurrence, dismissal, conversion, act or
omission:

 

(1)                                  except for the
Carve-Out having priority over the Obligations, no costs or expenses of
administration that have been or may be incurred in any of the Cases or any
conversion of the same or in any other proceedings related thereto, and no
priority claims, are or shall be prior to or on a parity with any claim of the
Secured Creditors against the Grantors in respect of any Obligation;

 

(2)                                  the Liens
granted herein and in the Orders shall constitute valid and perfected first
priority Liens and security interests and shall be prior to all other Liens,
now existing or hereafter arising, in favor of any other creditor or any other
Person whatsoever (subject only to (A) valid, perfected, nonavoidable and
enforceable Liens existing as of the Petition Date, (B) the extent such
postpetition perfection is expressly permitted by the Bankruptcy Code, valid,
nonavoidable and enforceable Liens existing as of the Petition Date, but
perfected after the Petition Date, and (C) the Carve-Out);

 

(3)                                  the Liens
granted hereunder shall constitute valid and perfected without the necessity
that financing statements be filed or that any other action be taken under applicable
nonbankruptcy law; and

 

(4)                                  notwithstanding
any failure on the part of any Credit Party or the Secured Creditors to
perfect, maintain, protect or enforce the Liens in the Collateral granted hereunder,
the Financing Orders shall, automatically and without further action by any Person,
perfect such Liens against the Collateral.

 

SECTION 3.05.                 Without limiting the
foregoing, the Collateral Agent is hereby authorized to file one or more financing
statements (including fixture filings), continuation statements, filings with
the United States Patent and Trademark Office, United States Copyright Office or
other documents for the purpose of perfecting, confirming, continuing,
enforcing or protecting the Security Interests granted by each Grantor, without
the signature of any Grantor, and naming any Grantor or the Grantors as debtors
and the Collateral Agent as secured party.

 

SECTION 3.06.                 No
Assumption of Liability.  The
Security Interests are granted as security only and shall not subject the
Collateral Agent or any other Secured Creditor to, or in any way alter or
modify, any obligation or liability of any Grantor with respect to or arising
out of the Collateral.

 

10

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES

 

The
Grantors jointly and severally represent and warrant to the Collateral Agent
and other the Secured Creditors that:

 

SECTION 4.01.                 Title
and Authority.  Each
Grantor has good and valid rights in and title to the Collateral with respect
to which it has purported to grant the Security Interests hereunder and,
subject to the entry of the Financing Orders by the Bankruptcy Court, has full
power and authority to grant to the Collateral Agent, for the benefit of the
Secured Creditors, the Security Interests in such Collateral pursuant hereto
and to execute, deliver and perform its obligations in accordance with the
terms of this Agreement, without the consent or approval of any other Person
other than any consent or approval which has been obtained.

 

SECTION 4.02.                 Validity
of Security Interest.  The
Security Interests constitute legal and valid security interests in all the
Collateral securing the payment and performance of the Obligations.  As of the date hereof, all information set
forth herein, including the Schedules annexed hereto is correct and
complete.  As of the date hereof, the
Collateral described on the Schedules annexed hereto constitutes all of the
property of such type of Collateral owned or held by the Grantors.

 

SECTION 4.03.                 Limitations
on and Absence of Other Liens.  The Collateral is owned by the Grantors free
and clear of any Lien, except for Permitted Liens and subject to the
Carve-Out.  The Grantors have not filed
or consented to the filing of (a) any financing statement or analogous
document under the UCC or any other applicable laws covering any Collateral, (b) any
assignment in which any Grantor assigns any Collateral or any security
agreement or similar instrument covering any Collateral with the United States
Patent and Trademark Office and the United States Copyright Office or (c) any
assignment in which any Grantor assigns any Collateral or any security
agreement or similar instrument covering any Collateral with any foreign
governmental, municipal or other office, which financing statement or analogous
document, assignment, security agreement or similar instrument is still in
effect, except, in each case, for Permitted Liens.

 

SECTION 4.04.                 Jurisdiction
of Organization.  As of the
Closing Date, Schedule 6 hereto identifies each Grantor’s corporate (or,
if not a corporation, legal) name, its jurisdiction of incorporation or
organization, the type of entity it was organized as and the state organization
identification number of such Grantor (if the state of its incorporation or
organization provides such organization number).  No Grantor will change its name, the state in
which it is organized or its type of organization.

 

SECTION 4.05.                 Instruments
and Tangible Chattel Paper.  As of the date
hereof, each Instrument and each item of Tangible Chattel Paper has been properly
endorsed, assigned and delivered to the Collateral Agent, and, if necessary,
accompanied by instruments of transfer or assignment duly executed in
blank.  If any amount individually in excess
of $250,000 or in the aggregate in excess of $1,000,000 payable under or in
connection with any of the Collateral shall be evidenced by any Instrument or
Tangible Chattel Paper, the Grantor acquiring such Instrument or Tangible
Chattel Paper shall forthwith endorse, assign and deliver the same to the
Collateral Agent, accompanied by such instruments of transfer or assignment
duly executed in blank as the Collateral Agent may from time to time specify.

 

11

 

SECTION 4.06.                 Deposit
Accounts and Investment Property.  (i)  Each Grantor hereby represents and
warrants that as of the date hereof (1) it has neither opened nor
maintains any Deposit Accounts other than the accounts listed in Schedule 7
to this Agreement, (2) it has neither opened nor maintains any Securities
Accounts or Commodity Accounts other than those listed in Schedule 8 to
this Agreement and (3) it does not hold, own or have any interest in any
certificated securities or uncertificated securities other than those constituting
Pledge Agreement Collateral or those maintained in Securities Accounts or
Commodity Accounts listed in Schedule 8 to this Agreement.

 

SECTION 4.07.                 Real
Estate Interests.  Each
Grantor has good and marketable title to, or valid leasehold interests in, all
Real Estate Interests owned or leased by it, including, without limitation, the
Real Estate Interests listed on Schedule 9 to this Agreement, and none
of such properties and assets is subject to any Lien, except Permitted Liens.

 

(a)                                  Set forth on Schedule
9 is a complete and accurate list of (i) all Real Property Owned, (ii) the
chief executive office and principal place of business of each Grantor and any
other location in which any Grantor’s Books and Records are located and (iii) all
other Real Property Leaseholds in which the aggregate fair market value of
Collateral located at each such Real Property Leasehold exceeds $1,000,000, in
each case showing as of the Closing Date the current street address (including,
where applicable, county, state and other relevant jurisdictions) and record
owner.

 

(b)                                 All Permits
required to have been issued or appropriate to enable all Real Estate Interests
of the Grantors to be lawfully occupied and used for all of the purposes for
which they are currently occupied and used have been lawfully issued and are in
full force and effect, other than those that would not reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect.

 

(c)                                  No Real Estate
Interest currently, or to the knowledge of the Grantors, previously owned,
operated, leased by or for the Grantors, is subject to any pending or, to the
knowledge of such Grantor, threatened, claim order, agreement, notice of
violation, notice of potential liability or pursuant to Environmental Laws
other than those that would not reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect.

 

(d)                                 No Grantor has
received any notice, or has any knowledge, of any pending, threatened or
contemplated condemnation proceeding affecting any Real Estate Interests of
such Grantor or any part thereof, except those which, in the aggregate, would
not have a Material Adverse Effect.

 

(e)                                  There are no
material facts, circumstances or conditions arising out of or relating to the
operations or ownership of Real Estate Interests owned, operated or leased by
the Grantors that are not specifically included in the information furnished to
the Collateral Agent.

 

SECTION 4.08.                 Intellectual
Property.

 

(a)                                  Schedule 1 attached
hereto contains a complete and accurate list, as of the date hereof, of all
Copyrights owned by each Grantor.

 

12

 

(b)                                 Schedule 2 attached
hereto contains a complete and accurate list, as of the date hereof, of (i) all
Licenses under which any Grantor has licensed to a third party any of its
rights or interests in any Intellectual Property and (ii) all material
Licenses under which any Grantor is the licensee or sublicensee (other than
Licenses in respect of general software or telephone switch software, which
Licenses are not, to the Grantors’ knowledge, assignable by such Grantor).

 

(c)                                  Schedule 3 attached
hereto contains a complete and accurate list, as of the date hereof, of all
Patents owned by each Grantor.

 

(d)                                 Schedule 4 attached
hereto contains a complete and accurate list, as of the date hereof, of all
Trademarks owned by each Grantor.

 

ARTICLE
V

COVENANTS

 

SECTION 5.01.                 Protection
of Security.  Each
Grantor shall, at its own cost and expense, take any and all actions reasonably
necessary to defend the Security Interests of the Collateral Agent in the
Collateral and the priority thereof against any Lien other than Permitted
Liens.

 

SECTION 5.02.                 Further
Assurances.  Each Grantor
agrees, at its own expense, to execute, acknowledge, deliver and cause to be
duly filed all such further instruments and documents and take all such actions
as the Collateral Agents may from time to time reasonably request to better
assure, preserve, protect and perfect the Security Interests and the rights and
remedies created hereby, including the payment of any fees and taxes required
in connection with the execution and delivery of this Agreement, the granting
of the Security Interests and the filing of any financing statements or other
documents in connection herewith or therewith.

 

SECTION 5.03.                 Taxes;
Encumbrances.  At its
option, the Collateral Agent may discharge past due taxes, assessments,
charges, fees, Liens, security interests or other encumbrances at any time
levied or placed on the Collateral except to the extent the same constitute
Permitted Liens, and may pay for the maintenance and preservation of the
Collateral to the extent any Grantor fails to do so as required by this Agreement
and each Grantor jointly and severally agrees to reimburse the Collateral Agent
on demand for any payment made or any expense incurred by the Collateral Agent
pursuant to the foregoing authorization, together with interest thereon at the
rate then in effect in respect of the Loans, and such amounts shall constitute
Obligations secured by the Collateral; provided, however, that nothing in this Section 5.03
shall be interpreted as excusing any Grantor from the performance of, or
imposing any obligation on the Collateral Agent or any Secured Creditor to cure
or perform, any covenants or other promises of any Grantor with respect to
taxes, assessments, charges, fees, liens, security interests or other
encumbrances and maintenance as set forth herein or in the other Credit Documents.  Performance of such Grantor’s obligations as
permitted under this Section 5.03 shall in no way constitute for the
purpose of the Cases a violation of the automatic stay provided by Section 362
of the Bankruptcy Code and each Grantor hereby waives applicability thereof.

 

13

 

SECTION 5.04.                 Assignment
of Security Interest.  If at any
time any Grantor shall take a security interest in any property of an Account
Debtor or any other Person to secure payment and performance of an Account in
an amount in excess of $250,000, such Grantor shall promptly assign such
security interest to the Collateral Agent. 
Such assignment need not be filed of public record unless necessary to
continue the perfected status of the security interest against creditors of and
transferees from the Account Debtor or other Person granting the security
interest.

 

SECTION 5.05.                 Continuing
Obligations of the Grantors.  Each Grantor shall remain liable to observe
and perform all the conditions and obligations to be observed and performed by
it under each contract, agreement or instrument relating to the Collateral, all
in accordance with the terms and conditions thereof, and each Grantor jointly
and severally agrees to indemnify and hold harmless the Collateral Agent and
the Secured Creditors from and against any and all liability for such
performance except to the other extent resulting from the gross negligence or
willful misconduct of the Collateral Agent or the other Secured Creditors, as
applicable.

 

SECTION 5.06.                 Use and
Disposition of Collateral.  None
of the Grantors shall grant any Lien in respect of the Collateral other than
Liens securing the Obligations and Permitted Liens.

 

SECTION 5.07.                 Limitation
on Modification of Accounts.  None of the Grantors will, without the
Collateral Agent’s prior written consent, grant any extension of the time of
payment of any of the Accounts Receivable, compromise, compound or settle the
same for less than the full amount thereof, release, wholly or partly, any
Person liable for the payment thereof or allow any credit or discount
whatsoever thereon, other than extensions, credits, discounts, compromises or
settlements granted or made in the ordinary course of business and consistent
with its past practices and in accordance with such prudent and standard
practices used in industries in which such Grantor is engaged.

 

SECTION 5.08.                 Insurance.  The Grantors, at their own expense, shall
maintain or cause to be maintained insurance covering physical loss or damage
to the Collateral in accordance with Section 6.03 of the Credit
Agreement.  Each Grantor irrevocably
makes, constitutes and appoints the Collateral Agent (and all officers,
employees or agents designated by the Collateral Agent) as such Grantor’s true
and lawful agent (and attorney-in-fact) for the purpose, during the continuance
of an Event of Default, of making, settling and adjusting claims in respect of
Collateral under policies of insurance, endorsing the name of such Grantor on
any check, draft, instrument or other item of payment for the proceeds of such
policies of insurance and for making all determinations and decisions with
respect thereto.

 

SECTION 5.09.      Certain Covenants and
Provisions Regarding Patent, Trademark and Copyright Collateral. Each
Grantor agrees that it will not, nor will it permit any of its licensees to, do
any act, or knowingly omit to do any act, whereby any Patent which is material
to the conduct of such Grantor’s business may become invalidated or dedicated
to the public.

 

(b)                                 Each Grantor
(either itself or through its licensees or its sublicenses) will, for each
Trademark material to the conduct of such Grantor’s business,  (i) maintain such Trademark in full
force free from any claim of abandonment or invalidity for nonuse, (ii) maintain
the quality of products and services offered under such Trademark, (iii) not
knowingly use or knowingly 

 

14

 

permit the use of such Trademark in violation
of any third party rights in a manner that, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

 

(c)                                  Each Grantor
shall notify the Collateral Agents as soon as practicable if it knows or has
reason to know that any Patent, Trademark or Copyright material to the conduct
of its business becomes or is reasonably likely to become abandoned, forfeited
or dedicated to the public, or of any adverse determination or development
including the institution of, or any such determination or development in, any
proceeding in the United States Patent and Trademark Office or United States
Copyright Office regarding such Grantor’s ownership of any Patent, Trademark or
Copyright material to the conduct of its business, or its right to register the
same, or to keep and maintain the same.

 

(d)                                 Each Grantor
hereby agrees that with respect to all Intellectual Property owned by such
Grantor on the date hereof, it will, if requested by the Collateral Agent,
execute and deliver any and all agreements, instruments or documents as the
Collateral Agent may reasonably request to evidence the Collateral Agent’s
security interest in such Intellectual Property, which agreements, instruments
or documents may be filed with the United States Patent and Trademark Office,
United States Copyright Office or any office or agency in any political
subdivision of the United States.

 

(e)                                  In the event
that any Grantor, either itself or through any agent, employee, licensee or
designee, files an application for or, following the Closing Date, becomes the
registered owner of, any Patent, Trademark or Copyright (or for the
registration of any Trademark or Copyright) with the United States Patent and
Trademark Office, United States Copyright Office or any office or agency in any
political subdivision of the United States, such Grantor shall promptly (and in
any event within thirty (30) days) notify the Collateral Agent of such
occurrence, and shall execute and deliver any and all agreements, instruments,
documents and papers as the Collateral Agent may reasonably request to evidence
the Collateral Agent’s security interest in such Patent, Trademark or Copyright
or application therefor, and each Grantor hereby appoints the Collateral Agent
as its attorney-in-fact to execute and file such writings solely for the foregoing
purposes, all acts of such attorney being hereby ratified and confirmed; such
power, being coupled with an interest, is irrevocable until this Agreement is
terminated.

 

(f)                                    Each Grantor
will take all necessary steps that are consistent with its reasonable business
judgment in any proceeding before the United States Patent and Trademark
Office, United States Copyright Office or any office or agency in any political
subdivision of the United States to maintain and pursue each material
application relating to the Patents, Trademarks and/or Copyrights (and to
obtain the relevant grant or registration) and to maintain each issued Patent
and each registration of the Trademarks or Copyrights that is material to the
conduct of any Grantor’s business, including timely filings of applications for
renewal, affidavits of use, affidavits of incontestability and payment of
maintenance fees, and, if consistent with its reasonable business judgment, to
initiate opposition, interference and cancellation proceedings against third
parties.

 

(g)                                 In the event
that any Grantor has reason to believe that any Collateral consisting of a
Patent, Trademark or Copyright which is material to its business has been or is
about to be infringed, misappropriated or diluted by a third party, such
Grantor promptly shall notify the 

 

15

 

Collateral Agent and shall, if consistent
with its reasonable business judgment, promptly sue for infringement,
misappropriation or dilution and to recover any and all damages for such
infringement, misappropriation or dilution, and take such other actions as are
appropriate under the circumstances to protect such Collateral.

 

(h)                                 To each Grantor’s
knowledge, on and as of the date hereof, such Grantor is not infringing upon
any Patent, Trademark or Copyright of any other Person other than such infringement
that, individually or in the aggregate, would not (or would not reasonably be
expected to) result in a Material Adverse Effect and no proceedings have been
instituted or are pending against such Grantor or, to such Grantor’s knowledge,
threatened, and no claim against such Grantor has been received by such
Grantor, alleging any such violation.

 

(i)                                     Upon the
occurrence and during the continuance of an Event of Default (but subject to
the Financing Orders), each Grantor shall upon the written request of the
Collateral Agent use its commercially reasonable efforts to obtain all
requisite consents or approvals by the licensor of each Copyright License,
Patent License or Trademark License to effect the assignment of all of such
Grantor’s right, title and interest thereunder to the Collateral Agent or its
designee.

 

(j)                                     Upon the
occurrence and during the continuance of a Default or Event of Default, each
Grantor shall, upon the written request of the Collateral Agent, provide a list
to the Collateral Agent of all material Licenses to which each Grantor is a
party.

 

SECTION 5.10.                 Other
Actions.  In order to further ensure the
attachment, perfection and priority of, and the ability of the Collateral Agent
to enforce, the Collateral Agent’s security interests in the Collateral, each
Grantor agrees, in each case at such Grantor’s own expense, to take the
following actions with respect to the following Collateral:

 

(a)                                  In the event
the Grantors have cash, Investment Property or other funds maintained in any
Deposit Accounts (other than (i) a Deposit Account exclusively used for
payroll, payroll taxes and other employee wage and benefit payments to or for
the benefit of a Grantor’s salaried employees and (ii) the FairPoint
Logistics, Inc. Dual Pole Fund Deposit Account ending with the last four
digits 2606, maintained by FairPoint Logistics at Fidelity Investments, so long
as the amount of cash contained therein does not at any time exceed the lesser
of (A) the amount required to comply with the PUC order issued prior to
the date hereof in which the cash contained therein relates and (B) $2,100,000)
and/or Security Accounts, Borrower shall promptly notify the Collateral Agent
and, if requested by the Collateral Agent, 
the Grantors shall promptly enter into Control Agreements in favor of
the Collateral Agent with the banks, Securities Intermediaries or Commodity
Intermediaries with which such Deposit Accounts and Security Accounts are
maintained granting to the Collateral Agents Control over such accounts.  Each Collateral Agent agrees with each
Grantor that, in the case of a Deposit Account subject to the Collateral Agent’s
Control, the Collateral Agent shall not give any instructions directing the disposition
of funds from time to time credited to any Deposit Account or withhold any
withdrawal rights from such Grantor with respect to funds from time to time
credited to any Deposit Account or, in the case of a Securities Account or
Commodity Account subject to each Collateral Agent’s Control, the Collateral
Agent shall not give any Entitlement Orders or instructions or directions to
any Securities Intermediary or Commodity Intermediary, and shall not withhold
its consent to the exercise of any withdrawal or dealing rights by such
Grantor, unless, in each case and subject 

 

16

 

to the Financing Orders, an Event of Default
has occurred and is continuing or, after giving effect to any withdrawal, would
occur.

 

(b)                                 If any Grantor
shall at any time hold or acquire any certificated securities constituting
Investment Property that are not Pledge Agreement Collateral, such Grantor
shall promptly (and in any event with fifteen (15) Business Days) endorse,
assign and deliver the same to the Collateral Agent, accompanied by such
instruments of transfer or assignment duly executed in blank, all in form and
substance reasonably satisfactory to the Collateral Agent.  If any securities now or hereafter acquired
by any Grantor constituting Investment Property that are not Pledged Agreement
Collateral are uncertificated and are not held in accounts required to be subject
to a Control Agreement, such Grantor shall promptly (and in any event within
fifteen (15) Business Days) notify the Collateral Agent thereof and, if
requested by the Collateral Agent, shall use commercially reasonable efforts to
cause the issuer to agree to comply with instructions from the Collateral Agent
as to such securities, without further consent of any Grantor pursuant to an
issuer’s acknowledgement in the form attached hereto as Annex I.

 

(c)                                  As between the
Collateral Agent and the Grantors, the Grantors shall bear the investment risk
with respect to the Investment Property, and the risk of loss of, damage to or
the destruction of the Investment Property, whether in the possession of, or
maintained as a security entitlement or deposit by, or subject to the control
of, the Collateral Agent, a Securities Intermediary, a Commodity Intermediary,
any Grantor or any other Person; provided, however, that nothing
contained in this Section 5.10(c) shall release or relieve any
Securities Intermediary or Commodity Intermediary of its duties and obligations
to the Grantors or any other Person under any Control Agreement or under
applicable law.

 

(d)                                 Each Grantor
shall promptly pay all Charges and fees arising on or after the date hereof
with respect to the Investment Property pledged by it under this Agreement,
except that no such Charge or fee need be paid if the amount or validity
thereof is currently being contested in good faith by appropriate proceedings,
reserves in conformity with GAAP with respect thereto have been provided on the
books of such Grantor and such proceedings could not reasonably be expected to
result in the sale, forfeiture or loss of any material portion of the
Collateral or any interest therein.  In
the event any Grantor shall fail to make such payment contemplated in the immediately
preceding sentence, the Collateral Agent may do so for the account of such
Grantor and the Grantors shall promptly reimburse and indemnify the Collateral
Agent from all costs and expenses incurred by the Collateral Agent under this Section 5.10(d),
together with interest thereon at the rate then in effect in respect of the
Loans, and such amounts shall constitute Obligations secured by the
Collateral.  Performance of such Grantor’s
obligations as permitted under this Section 5.10(d) shall in no way
constitute for the purpose of the Cases a violation of the automatic stay
provided by Section 362 of the Bankruptcy Code and each Grantor hereby
waives applicability thereof.

 

(e)                                  Electronic
Chattel Paper and Transferable Records.  If any amount
individually in excess of $250,000 or in the aggregate in excess of $1,000,000
payable under or in connection with any of the Collateral shall be evidenced by
any Electronic Chattel Paper or any “transferable record,” as that term is
defined in Section 201 of the Federal Electronic Signatures in Global and
National Commerce Act, or in Section 16 of the Uniform Electronic
Transactions Act as in effect in any relevant jurisdiction, the Grantor
acquiring such Electronic Chattel Paper or transferable 

 

17

 

record shall promptly notify the Collateral
Agent thereof and shall take such action as the Collateral Agent may reasonably
request to vest in the Collateral Agent control under UCC Section 9-105 of
such Electronic Chattel Paper or control under Section 201 of the Federal
Electronic Signatures in Global and National Commerce Act or, as the case may
be, Section 16 of the Uniform Electronic Transactions Act, as so in effect
in such jurisdiction, of such transferable record.  The Collateral Agent agrees with such Grantor
that the Collateral Agent will arrange, pursuant to procedures reasonably
satisfactory to the Collateral Agent and so long as such procedures will not
result in the Collateral Agent’s loss of control, for the Grantor to make
alterations to the Electronic Chattel Paper or transferable record permitted
under UCC Section 9-105 or, as the case may be, Section 201 of the
Federal Electronic Signatures in Global and National Commerce Act of Section 16
of the Uniform Electronic Transactions Act for a party in control to allow
without loss of control, unless an Event of Default has occurred and is
continuing or would occur after taking into account any action by such Grantor
with respect to such Electronic Chattel Paper or transferable record.

 

(f)                                    Letter-of-Credit
Rights.  If any Grantor is at any
time a beneficiary under a Letter of Credit now or hereafter issued in favor of
such Grantor in an amount individually in excess of $250,000 or in the
aggregate in excess of $1,000,000, such Grantor shall promptly notify the
Collateral Agent and, if requested by the Collateral Agent, such Grantor shall
use commercially reasonable efforts to pursuant to an agreement in form and
substance satisfactory to the Collateral Agent, either (i) arrange for the
issuer and any confirmer of such Letter of Credit to consent to an assignment
to the Collateral Agent of the proceeds of any drawing under the Letter of
Credit or (ii) arrange for the Collateral Agent to become the transferee
beneficiary of such Letter of Credit.

 

(g)                                 Commercial
Tort Claims.  As of the date
hereof each Grantor hereby represents and warrants that it holds no Commercial
Tort Claims other than those listed on Schedule 5 to this
Agreement.  If any Grantor shall at any
time hold or acquire a Commercial Tort Claim having a value individually in
excess of $250,000 or in the aggregate in excess of $1,000,000 such Grantor
shall promptly notify the Collateral Agent thereof and, if requested by the
Collateral Agent, grant to the Collateral Agent in writing signed by such
Grantor a security interest therein and in the Proceeds thereof, all upon the
terms of this Agreement, with such writing to be in form and substance
reasonably satisfactory to the Collateral Agent.

 

(h)                                 Motor
Vehicles.  Upon the
request of the Collateral Agent, each Grantor shall deliver to the Collateral
Agent originals of the certificates of title or ownership for the motor vehicles
(and any other Equipment covered by Certificates of Title or ownership) owned
by it with each Collateral Agent listed as a lienholder therein.  Such requirement shall apply to the Grantors
if any such motor vehicle (or any such other Equipment) is valued over
$250,000, provided that the value of all such motor vehicles (and such
Equipment) as to which any Grantor has not delivered a Certificate of Title or
ownership is over $250,000.

 

(i)                                     Landlord’s
Access Agreements/Bailee Letters.  With respect to each Real Property Leasehold
and each warehouse or other storage facility located in the United States of
America owned by any Person other than a Grantor, if Inventory, Equipment or
other personal property of any Grantor with a fair market value in excess of
$500,000 is regularly maintained at such location, Borrowers shall notify the
Collateral Agents thereof and, if requested by the Collateral 

 

18

 

Agent, will use its commercially reasonable
efforts to deliver a landlord waiver and access agreement or bailee letter, as
applicable, in form and substance reasonably satisfactory to the Collateral
Agent.

 

ARTICLE
VI

REMEDIES

 

SECTION 6.01.                 Remedies upon Default. 
After the occurrence and during the continuance of an Event of Default,
upon five (5) days’ notice to the Grantors (with a copy to counsel for the
Committee and to the United States Trustee for the Southern District of New
York), the Collateral Agent shall have the right to take any of or all the
following actions at the same or different times:  (a) with respect to any Collateral
consisting of Intellectual Property, on demand, to cause the Security Interest
to become an assignment, transfer and conveyance of any of or all such
Collateral by the applicable Grantors to the Collateral Agent, or to license or
sublicense, whether general, special or otherwise, and whether on an exclusive
or nonexclusive basis, any such Collateral throughout the world on such terms
and conditions and in such manner as the Collateral Agent shall determine
(other than in violation of applicable law or any then existing licensing
arrangements to the extent that waivers cannot be obtained), and (b) with
or without legal process and with or without prior notice or demand for
performance, to take possession of the Collateral and without liability for
trespass to enter any premises where the Collateral may be located for the
purpose of taking possession of or removing the Collateral and, generally, to
exercise any and all rights afforded to a secured creditor under the UCC or
other applicable law.  Without limiting
the generality of the foregoing, each Grantor agrees that the Collateral Agent
shall have the right, subject to the mandatory requirements of applicable law,
to sell or otherwise dispose of all or any part of the Collateral, at public or
private sale or at any broker’s board or on any securities exchange, for cash,
upon credit or for future delivery as the Collateral Agent shall deem
appropriate.  The Collateral Agent shall
be authorized at any such sale (if it deems it advisable to do so) to restrict
the prospective bidders or purchasers to Persons who will represent and agree
that they are purchasing the Collateral for their own account for investment
and not with a view to the distribution or sale thereof, and upon consummation
of any such sale the Collateral Agent shall have the right to assign, transfer
and deliver to the purchaser or purchasers thereof the Collateral so sold.  Each such purchaser at any such sale shall
hold the property sold absolutely, free from any claim or right on the part of
any Grantor, and each Grantor hereby waives (to the extent permitted by law)
all rights of redemption, stay and appraisal which such Grantor now has or may
at any time in the future have under any rule of law or statute now
existing or hereafter enacted.

 

The
Collateral Agent shall give a Grantor ten (10) Business Days’ prior
written notice (which each Grantor agrees is reasonable notice within the
meaning of Section 9-611 of the UCC) of the Collateral Agent’s intention
to make any sale or other disposition of such Grantor’s Collateral.  Such notice, in the case of a public sale,
shall state the time and place for such sale and, in the case of a sale at a
broker’s board or on a securities exchange, shall state the board or exchange
at which such sale is to be made and the day on which the Collateral, or
portion thereof, will first be offered for sale at such board or exchange.  Any such public sale shall be held at such
time or times within ordinary business hours and at such place or places as the
Collateral Agent may fix and state in the notice of such sale.  At any such sale, the Collateral, or portion 

 

19

 

thereof, to be sold may be sold in one lot as an
entirety or in separate parcels, as the Collateral Agent may (in its sole and
absolute discretion) determine.  Neither
Collateral Agent shall be obligated to make any sale of any Collateral if it
shall determine not to do so, regardless of the fact that notice of sale of
such Collateral shall have been given. 
The Collateral Agent may, without notice or publication, adjourn any
public or private sale or cause the same to be adjourned from time to time by
announcement at the time and place fixed for sale, and such sale may, without
further notice, be made at the time and place to which the same was so
adjourned.  In case any sale of all or
any part of the Collateral is made on credit or for future delivery, the
Collateral so sold may be retained by the Collateral Agent until the sale price
is paid by the purchaser or purchasers thereof, but the Collateral Agent shall
not incur any liability in case any such purchaser or purchasers shall fail to
take up and pay for the Collateral so sold and, in case of any such failure,
such Collateral may be sold again upon like notice.  At any public (or, to the extent permitted by
law, private) sale made pursuant to this Section, any Secured Creditor may bid
for or purchase, free (to the extent permitted by law) from any right of
redemption, stay, valuation or appraisal on the part of any Grantor (all said
rights being also hereby waived and released), the Collateral or any part
thereof offered for sale and may make payment on account thereof by using any
Obligation then due and payable to such Secured Creditor from any Grantor as a
credit against the purchase price, and such Secured Creditor may, upon
compliance with the terms of sale, hold, retain and dispose of such property
without further accountability to any Grantor therefor.  For purposes hereof, a written agreement to
purchase the Collateral or any portion thereof shall be treated as a sale
thereof; the Collateral Agent shall be free to carry out such sale pursuant to
such agreement and no Grantor shall be entitled to the return of the Collateral
or any portion thereof subject thereto, notwithstanding the fact that after the
Collateral Agent shall have entered into such an agreement all Events of
Default shall have been remedied and the Obligations paid in full.  As an alternative to exercising the power of
sale herein conferred upon it, the Collateral Agent may proceed by a suit or
suits at law or in equity to foreclose this Agreement and to sell the
Collateral or any portion thereof pursuant to a judgment or decree of a court
or courts having competent jurisdiction or pursuant to a proceeding by a
court-appointed receiver.  Any sale
pursuant to the provisions of this Section shall be deemed to conform to
the commercially reasonable standards as provided in Section 9-611 of the
UCC.

 

The
Secured Creditors agree that this Agreement may be enforced only by the action
of the Collateral Agent, and that no other Secured Creditor shall have any
right individually to seek to enforce or to enforce this Agreement or to
realize upon the security to be granted hereby, it being understood and agreed
that such rights and remedies may be exercised by the Collateral Agent for the
benefit of the Secured Creditors upon the terms of this Agreement.  Exercise by the Collateral Agent of the
powers granted under this Agreement is not a violation of the automatic stay
provided by Section 362 of the Bankruptcy Code and each Grantor waives the
applicability thereof.  The Secured
Creditors shall be entitled to all of the rights and benefits of section 552(b) of
the Bankruptcy Code, and the “equities of the case” exception under section 552(b) of
the Bankruptcy Code shall not apply to the Secured Creditors with respect to
proceeds, product, offspring or profits of any of the Collateral.

 

20

 

SECTION 6.02.                 Application
of Proceeds.

 

(a)                                  All moneys
collected by the Collateral Agent upon any sale or other disposition of the
Collateral, together with all other moneys received by the Collateral Agent or
the Collateral Agent hereunder, shall be applied as follows:

 

(1)                                  first, to any fees,
indemnities or expense reimbursements then due and owing to the Administrative
Agent, the Collateral Agent or the Pledgee under the Pledge Agreement;

 

(2)                                  second, to the extent
proceeds remain after the application pursuant to preceding clause (i), an
amount equal to the outstanding Obligations to the Secured Creditors shall be
paid to the Secured Creditors, with each Secured Creditor receiving an amount
equal to its outstanding Obligations or, if the proceeds are insufficient to
pay in full all such Obligations, its Pro Rata Share of the
amount remaining to be distributed to be applied, with respect to the
Obligations, firstly, to the payment of interest in respect of the
unpaid principal amount of Loans outstanding, secondly, to the payment
of principal of Loans outstanding, then to the other Obligations; and

 

(3)                                  third, to the extent
proceeds remain after the application pursuant to the preceding clauses (i) and
(ii) and following the termination of this Agreement pursuant to Section 7.10
hereof, to the relevant Grantor or, to the extent directed by such Grantor or a
court of competent jurisdiction, to whomever may be lawfully entitled to
receive such surplus.

 

(b)                                 For purposes of
this Agreement, “Pro Rata Share” shall mean, when calculating a Secured
Creditor’s portion of any distribution or amount, the amount (expressed as a
percentage) equal to a fraction the numerator of which is the then outstanding
amount of the relevant Obligations owed such Secured Creditor and the
denominator of which is the then outstanding amount of all Obligations.

 

(c)                                  All payments
required to be made to the Secured Creditors hereunder shall be made to the
Administrative Agent for the account of the respective Secured Creditors.

 

(d)                                 It is
understood that each Grantor shall remain jointly and severally liable to the
extent of any deficiency between (x) the amount of the Obligations for
which it is liable directly or as a Guarantor that are satisfied with proceeds
of the Collateral and (y) the aggregate outstanding amount of the
Obligations.

 

SECTION 6.03.                 Grant
of License to Use Intellectual Property.  For the purpose of enabling the Collateral
Agent to exercise rights and remedies under this Article at such time as
the Collateral Agent shall be lawfully entitled to exercise such rights and
remedies, each Grantor hereby grants to the Collateral Agent a nonexclusive
license (exercisable without payment of royalty or other compensation to the
Grantors) to use, license or sublicense any of the Collateral, except to the
extent that such license may not be granted as a result of a pre-existing
exclusive license arrangement, consisting of Intellectual Property now owned or
hereafter acquired by such Grantor, and wherever the same may be located, and
including in such license reasonable access to all media in which any of the
licensed items may be recorded or stored and to all computer 

 

21

 

software
and programs used for the compilation or printout thereof.  The use of such license by the Collateral
Agent shall be exercised, at the option of the Collateral Agent, after the
occurrence and during the continuation of an Event of Default; provided
that any license, sublicense or other transaction entered into by the
Collateral Agent in accordance herewith shall be binding upon the Grantors
notwithstanding any subsequent cure of an Event of Default.  Such license shall be irrevocable until this
Agreement is terminated.

 

ARTICLE
VII

MISCELLANEOUS

 

SECTION 7.01.                 Notices. All notices
and other communications hereunder shall be in writing (including telegraphic,
telex, telecopier, facsimile or cable communication) and shall be delivered,
telegraphed, telexed, telecopied, faxed, cabled, or mailed (by first class
mail, postage prepaid):

 

(1)                                  if to any
Grantor, at its address set forth opposite its signature below;

 

(2)                                  if to the
Collateral Agent, at:

 

Bank of America, N.A.
 901 Main Street

Dallas, TX 75202

Attention:  Garrett Dolt

Fax:  (214) 530-3008

 

(3)                                  if to any
Secured Creditor (other than the Collateral Agent), either (x) to the
Administrative Agent, at the address of the Administrative Agent specified in
the Credit Agreement or (y) at such address as such Secured Creditor shall
have specified in the Credit Agreement;

 

or at such other address as shall have
been furnished in writing by any Person described above to the party required
to give notice hereunder.

 

SECTION 7.02.                 Survival
of Agreement.  All
covenants, agreements, representations and warranties made by any Grantor
herein and in the certificates or other instruments prepared or delivered in
connection with or pursuant to this Agreement or any other Credit Document
shall be considered to have been relied upon by the Collateral Agents and the
other Secured Creditors and shall survive the making by the Lenders of the
Loans and the Lenders’ issuance of and participations in Letters of Credit,
regardless of any investigation made by the Secured Creditors or on their
behalf, and shall continue in full force and effect until this Agreement shall
terminate.

 

SECTION 7.03.                 Binding
Effect.  This Agreement shall become
effective as to any Grantor when a counterpart hereof executed on behalf of
such Grantor shall have been delivered to the Collateral Agent and a counterpart
hereof shall have been executed on behalf of the Collateral Agent, and
thereafter shall be binding upon such Grantor and the Collateral Agents and
their respective successors and assigns, and shall inure to the benefit of such
Grantor, the Collateral 

 

22

 

Agent
and the other Secured Creditors and their respective successors and assigns,
except that no Grantor shall have the right to assign or transfer its rights or
obligations hereunder or any interest herein or in the Collateral (and any such
assignment or transfer shall be void) except as expressly permitted by each of
the other Credit Documents.

 

SECTION 7.04.                 Successors
and Assigns.  Whenever in
this Agreement any of the parties hereto is referred to, such reference shall
be deemed to include the successors and assigns of such party; and all
covenants, promises and agreements by or on behalf of any Grantor or the
Collateral Agent that are contained in this Agreement shall bind and inure to
the benefit of their respective successors and assigns.

 

SECTION 7.05.                 GOVERNING
LAW.

 

(a)                                  THIS AGREEMENT
AND THE RIGHTS AND OBLIGATIONS OF THE SECURED CREDITORS AND OF THE UNDERSIGNED
HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE
OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF LAWS.  Except for matters within the exclusive
jurisdiction of the Bankruptcy Court, any legal action or proceeding with
respect to this Agreement or any other Credit Document may be brought in the
courts of the State of New York or of the United States of America for the
Southern District of New York, and, by execution and delivery of this
Agreement, each Grantor hereby irrevocably accepts for itself and in respect of
its property, generally and unconditionally, the jurisdiction of the aforesaid
courts.  Each Grantor further irrevocably
consents to the service of process out of any of the aforementioned courts in
any such action or proceeding by the mailing of copies thereof by registered or
certified mail, postage prepaid, to each Grantor at its address set forth opposite
its signature below, such service to become effective 30 days after such
mailing.  Nothing herein shall affect the
right of any of the Secured Creditors to serve process in any other manner
permitted by law or to commence legal proceedings or otherwise proceed against
any Grantor in any other jurisdiction.

 

(b)                                 Except for
matters within the exclusive jurisdiction of the Bankruptcy Court, each Grantor
hereby irrevocably waives any objection which it may now or hereafter have to
the laying of venue of any of the aforesaid actions or proceedings arising out
of or in connection with this Agreement or any other Credit Document brought in
the courts referred to in clause (a) above and hereby further irrevocably
waives and agrees not to plead or claim in any such court that such action or
proceeding brought in any such court has been brought in an inconvenient forum.

 

(c)                                  EACH GRANTOR
AND THE COLLATERAL AGENT HEREBY IRREVOCABLY WAIVE ALL RIGHT TO A TRIAL BY JURY
IN ANY ACTION, PROCEEDING OR COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS
AGREEMENT, THE OTHER CREDIT DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY.

 

SECTION 7.06.                 Waivers;
Amendment; Several Agreement.  None of the
terms and conditions of this Agreement may be changed, waived, modified or varied
in any manner whatsoever unless in writing duly signed by the Collateral Agent
(with the consent of the Required 

 

23

 

Lenders
or, to the extent required by Section 11.11 of the Credit Agreement, all
of the Lenders) and each Grantor affected thereby, provided that
 no such change, waiver, modification or variance shall be made to Section 6.02
hereof of this Section 7.06 without the consent of each Secured
Creditor adversely affected thereby.

 

SECTION 7.07.                 Severability.  In the event any one or more of the
provisions contained in this Agreement should be held invalid, illegal or
unenforceable in any respect, the validity, legality and enforceability of the
remaining provisions contained herein shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular
provision in a particular jurisdiction shall not in and of itself affect the validity
of such provision in any other jurisdiction). 
The parties shall endeavor in good-faith negotiations to replace the
invalid, illegal or unenforceable provisions with valid provisions the economic
effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.  It is
understood and agreed among the parties that this Agreement shall create
separate security interests in the Collateral securing the Obligations as
provided in Section 3.01, and that any determination by any court with
jurisdiction that the security interest securing any Obligation or class of
Obligations is invalid for any reason shall not in and of itself invalidate the
security interest securing any other Obligations hereunder.

 

SECTION 7.08.                 Counterparts. 
This Agreement may be executed in two or more counterparts, each of
which shall constitute an original but all of which when taken together shall
constitute a single contract and shall become effective as provided in Section 7.03.
Delivery of an executed signature page to this Agreement by facsimile
transmission shall be effective as delivery of a manually executed counterpart
hereof.

 

SECTION 7.09.                 Headings.  Article and Section headings used
herein are for the purpose of reference only, are not part of this Agreement
and are not to affect the construction of, or to be taken into consideration in
interpreting, this Agreement.

 

SECTION 7.10.                 Termination. After the
Termination Date (as defined below), this Agreement shall terminate (provided
that all indemnities set forth herein shall survive any such termination) and
the Collateral Agent, at the request and expense of the Grantors, will, if requested
by the Grantors, execute and deliver to the Grantors a proper instrument or
instruments acknowledging the satisfaction and termination of this Agreement as
provided above, and will duly assign, transfer and deliver to such Grantor
(without recourse and without any representation or warranty) such of the
Collateral as may be in the possession of the Collateral Agent and as has not
theretofore been sold or otherwise applied or released pursuant to this
Agreement, together with any moneys at the time held by the Collateral Agent
hereunder.  As used in this Agreement, “Termination
Date” shall mean the date upon which the Total Revolving Commitment has
been terminated, no Note under the Credit Agreement is outstanding (and all
Loans have been paid in full), all Letters of Credit have been cancelled (or
have expired, undrawn) or collateralized to the satisfaction of the
Administrative Agent and all other Obligations have been paid in full (other
than arising from indemnities for which no request has been made).

 

SECTION 7.11.                 Financing
Statements.  Each
Grantor hereby irrevocably authorizes the Collateral Agent at any time and from
time to time to file in any relevant jurisdiction any initial financing
statements and amendments thereto that contain the information required by Article 9
of the Uniform Commercial Code of each applicable jurisdiction for the filing of
any financing statement or amendment relating to the Collateral, including (i) whether
such Grantor is 

 

24

 

an
organization, the type of organization and any organizational identification
number issued to such Grantor, (ii) any financing or continuation
statements or other documents without the signature of such Grantor where
permitted by law, including the filing of a financing statement describing the
Collateral as “all assets now owned or hereafter acquired by the Grantor or in
which Grantor otherwise has rights” and (iii) in the case of a financing
statement filed as a fixture filing or covering Collateral constituting
minerals or the like to be extracted or timber to be cut, a sufficient
description of the real property to which such Collateral relates.

 

SECTION 7.12.                 Collateral Agent Appointed
Attorney-in-Fact.
Each Grantor hereby appoints the Collateral Agent the attorney-in-fact of such
Grantor for the purpose of carrying out the provisions of this Agreement and
taking any action and executing any instrument that the Collateral Agent may
deem necessary or advisable to accomplish the purposes hereof, which
appointment is irrevocable until this Agreement is terminated and coupled with
an interest.  Without limiting the
generality of the foregoing, the Collateral Agent shall have the right, after
the occurrence and during the continuance of an Event of Default (but subject
to the terms of the Financing Orders), with full power of substitution either
in the Collateral Agent’s name or in the name of such Grantor, (a) to
receive, endorse, assign or deliver any and all notes, acceptances, checks,
drafts, money orders or other evidences of payment relating to the Collateral
or any part thereof; (b) to demand, collect, receive payment of, give
receipt for and give discharges and releases of all or any of the Collateral; (c) to
ask for, demand, sue for, collect, receive and give acquittance for any and all
moneys due or to become due under and by virtue of any Collateral; (d) to
sign the name of any Grantor on any invoice or bill of lading relating to any
of the Collateral; (e) to send verifications of Accounts to any Account
Debtor; (f) to commence and prosecute any and all suits, actions or
proceedings at law or in equity in any court of competent jurisdiction to
collect or otherwise realize on all or any of the Collateral or to enforce any
rights in respect of any Collateral; (g) to settle, compromise, compound,
adjust or defend any actions, suits or proceedings relating to all or any of
the Collateral; (h) to notify, or to require any Grantor to notify,
Account Debtors to make payment directly to the Collateral Agent; and (i) to
use, sell, assign, transfer, pledge, make any agreement with respect to or
otherwise deal with all or any of the Collateral, and to do all other acts and
things necessary to carry out the purposes of this Agreement, as fully and
completely as though the Collateral Agent were the absolute owner of the
Collateral for all purposes; provided, that nothing herein contained
shall be construed as requiring or obligating the Collateral Agent to make any
commitment or to make any inquiry as to the nature or sufficiency of any
payment received by the Collateral Agent, or to present or file any claim or
notice, or to take any action with respect to the Collateral or any part
thereof or the moneys due or to become due in respect thereof or any property
covered thereby.  The Collateral Agent
and the other Secured Creditors shall be accountable only for amounts actually
received as a result of the exercise of the powers granted to them herein, and
neither they nor their officers, directors, employees or agents shall be
responsible to any Grantor for any act or failure to act hereunder, except for
their respective own gross negligence or willful misconduct.

 

[Signatures on Following Page]

 

25

 

[SIGNATURE PAGES OMITTED]

 

 

Annex 1
to the

Debtor-In-Possession Security Agreement

 

[Form of]

 

ISSUER’S ACKNOWLEDGMENT AGREEMENT

 

AGREEMENT (as amended, modified, restated and/or
supplemented from time to time, this “Agreement”), dated as of [ , 20 ],
among the undersigned grantor (the “Grantor”), BANK OF AMERICA, N.A.,
not in its individual capacity but solely as Collateral Agent (the “Collateral
Agent”), and [ ], as the issuer of the Investment Property (the “Issuer”).

 

W
I T N E S S E T H :

 

WHEREAS, the Grantor, certain of its affiliates and
the Collateral Agent have entered into a Debtor-In-Possession Security Agreement,
dated as of October 30, 2009 (as amended, modified, restated and/or
supplemented from time to time, the “Security Agreement”), (a) under
which, among other things, in order to secure the payment of the Obligations,
the Grantor has pledged o the Collateral Agent for the benefit of the Secured
Creditors, and has granted a security interest in favor of the Collateral Agent
for the benefit of the Secured Creditors in, all of the right, title and
interest of the Grantor in and to substantially all of its assets, including
all Investment Property from time to time issued by the Issuer, whether now
existing or hereafter from time to time acquired by the Grantor (with all of
such Investment Property being herein collectively called the “Issuer
Pledged Interests”); and

 

WHEREAS, the Grantor desires the Issuer to enter
into this Agreement in order to vest in the Collateral Agent control of the
Issuer Pledge Interests and to provide for the rights of the parties under this
Agreement;

 

NOW THEREFORE, in consideration of the premises and
the mutual promises and agreements contained herein, and for other valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby agree as follows:

 

1.                                       The Grantor
hereby irrevocably authorizes and directs the Issuer, and the Issuer hereby
agrees, to comply with any and all instructions and orders originated by the
Collateral Agent (and its successors and assigns) regarding any and all of the
Issuer Pledged Interests without the further consent by the registered owner
(including the Grantor), and, following its receipt of a notice from the
Collateral Agent stating that the Collateral Agent is exercising exclusive
control of the Issuer Pledged Interests, not to comply with any instructions or
orders regarding

 

(a) Capitalized terms
used but not otherwise defined herein shall have the meanings ascribed to them
in the Security Agreement.

 

1

 

any
or all of the Issuer Pledged Interests originated by any person or entity other
than the Collateral Agent (and its successors and assigns) or a court of
competent jurisdiction.

 

2.                                       The Issuer
hereby certifies that (i) no notice of any security interest, lien or
other encumbrance or claim affecting the Issuer Pledged Interests (other than
the security interest of the Collateral Agent) has been received by it, and (ii) the
security interest of the Collateral Agent in the Issuer Pledged Interests has
been registered in the books and records of the Issuer.

 

3.                                       The Issuer
hereby represents and warrants that (i) the pledge by the Grantor of, and
the granting by the Grantor of a security interest in, the Issuer Pledged
Interests to the Collateral Agent, for the benefit of the Secured Creditors,
does not violate the charter, by-laws, partnership agreement, membership
agreement or any other agreement governing the Issuer or the Issuer Pledged
Interests, and (ii) the Issuer Pledged Interests consisting of capital
stock of a corporation are fully paid and nonassessable.

 

4.                                       All notices,
statements of accounts, reports, prospectuses, financial statements and other
communications to be sent to the Grantor by the Issuer in respect of the Issuer
will also be sent to the Collateral Agent at the following address:

 

[  ]

[  ]

Attention:  [  ]

Telephone
No.:  [  ]

Telecopier
No.:  [  ]

 

5.                                       Following its
receipt of a notice from the Collateral Agent stating that the Collateral Agent
is exercising exclusive control of the Issuer Pledged Interests and until the
Collateral Agent shall have delivered written notice to the Issuer that all of
the Obligations have been paid in full and this Agreement is terminated, the
Issuer will send any and all redemptions, distributions, interest or other
payments in respect of the Issuer Pledged Interests from the Issuer for the
account of the Collateral Agent only by wire transfers to such account as the
Collateral Agent shall instruct.

 

6.                                       Except as
expressly provided otherwise in Sections 4 and 5, all notices, instructions,
orders and communications hereunder shall be sent or delivered by mail,
telegraph, telex, telecopy, cable or overnight courier service and all such
notices and communications shall, when mailed, telexed, telecopied, cabled or
sent by overnight courier, be effective when deposited in the mails or
delivered to overnight courier, prepaid and properly addressed for delivery on
such or the next Business Day, or sent by telex or telecopier, except that
notices and communications to the Collateral Agent or the Issuer shall not be effective
until received.  All notices and other
communications shall be in writing and addressed as follows:

 

(a)                                  if to the
Grantor, at:

 

Attention:  

Telephone No.:  

Fax No.:

 

2

 

(b)                                 if to the
Collateral Agent, at the address given in Section 4 hereof;

 

(c)                                  if to the
Issuer, at:

 

or at such other address as shall have been
furnished in writing by any Person described above to the party required to
give notice hereunder.  As used in this Section 6,
“Business Day” means any day other than a Saturday, Sunday, or other day
in which banks in New York are authorized to remain closed.

 

7.                                       This Agreement
shall be binding upon the successors and assigns of the Grantor and the Issuer
and shall inure to the benefit of and be enforceable by the Collateral Agent
and its successors and assigns.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which shall constitute one instrument.  In the event that any provision of this
Agreement shall prove to be invalid or unenforceable, such provision shall be
deemed to be severable from the other provisions of this Agreement which shall
remain binding on all parties hereto. 
None of the terms and conditions of this Agreement may be changed,
waived, modified or varied in any manner whatsoever except in writing signed by
the Collateral Agent, the Issuer and the Grantor.

 

8.                                       This Agreement
shall be governed by and construed in accordance with the laws of the State of
New York, without regard to its principles of conflict of laws.

 

3

 

IN WITNESS WHEREOF, the Grantor, the Collateral
Agent and the Issuer have caused this Agreement to be executed by their duly
elected officers duly authorized as of the date first above written.

 

 

	
   

  	
  [                                      ],

  
	
   

  	
   

  	
  as
  Grantor

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [                                      ],

  
	
   

  	
   

  	
  not
  in its individual capacity but solely

  
	
   

  	
   

  	
  as
  Collateral Agent and Collateral Agent

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [                                      ],

  
	
   

  	
   

  	
  as
  the Issuer

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

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