Document:

<PAGE>

                                                                    Exhibit 10.2

                               PURCHASE AGREEMENT

                                   dated as of

                                 August 22, 2002

                                 by and between

                              ITC DeltaCom, Inc.,

                                       and

                                SCANA Corporation

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                            Page
<S>                                                                         <C>
                                    ARTICLE I
         ISSUANCE AND SALE OF PREFERRED SHARES, WARRANTS AND NEW COMMON
                                      STOCK

1.1.   Issuance, Purchase and Sale .........................................  2
1.2.   Closing .............................................................  2
1.3.   Deliveries ..........................................................  3
1.4.   Capitalized Terms ...................................................  3

                                   ARTICLE II
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

2.1.   Organization; Subsidiaries ..........................................  3
2.2.   Due Authorization ...................................................  4
2.3.   Capitalization ......................................................  4
2.4.   SEC Reports .........................................................  5
2.5.   Litigation ..........................................................  5
2.6.   Absence of Certain Changes ..........................................  5
2.7.   Consents; No Violations .............................................  5
2.8.   Brokers or Finders ..................................................  6
2.9.   No General Solicitation or Advertising; No Integration ..............  6

                                   ARTICLE III
                 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

3.1.   Acquisition for Investment ..........................................  7
3.2.   Accredited Investor Status ..........................................  7
3.3.   Information .........................................................  7
3.4.   Government Review ...................................................  7
3.5.   Sale or Transfer ....................................................  7
3.6.   Residency ...........................................................  8
3.7.   No Brokers or Finders ...............................................  8
3.8    Organization ........................................................  8
3.9.   Due Authorization ...................................................  8
3.10.  Consents; No Violations .............................................  9
3.11.  Litigation ..........................................................  9
3.12.  Availability of Funds ...............................................  9

                                   ARTICLE IV
                                    COVENANTS

4.1.   Public Announcements ................................................  9
4.2.   Consents, Approvals and Filings ..................................... 10
</TABLE>

                                       ii

<PAGE>

<TABLE>
<S>                                                                             <C>
4.3.  Reasonable Best Efforts ................................................  10
4.4.  Listing ................................................................  10
4.5.  Preferred Stock Certificate of Designation .............................  10
4.6.  Reservation of New Common Stock ........................................  10
4.7.  Board Representation Rights ............................................  10
4.8.  Confidential Treatment of Confidential Information .....................  11
4.9.  Registration Rights ....................................................  11
4.10. Obligation of the Purchaser to Vote in Favor of the Plan ...............  11
4.11. Further Assurances .....................................................  12
4.12. Waiver of Right to Participate in Rights Offering ......................  12

                                    ARTICLE V
                                   CONDITIONS

5.1.  Conditions to Obligations of the Purchaser and the Company at Closing ..  12
5.2.  Additional Conditions to Obligations of the Purchaser at the Closing ...  13
5.3.  Additional Conditions to Obligations of the Company at the Closing .....  14

                                   ARTICLE VI
                                   TERMINATION

6.1.  Termination ............................................................  15
6.2.  Effect of Termination ..................................................  15

                                   ARTICLE VII
                                  MISCELLANEOUS

7.1.  Definitions ............................................................  16
7.2.  Survival of Representations and Warranties .............................  18
7.3.  Fees and Expenses ......................................................  18
7.4.  Enforcement ............................................................  18
7.5.  Restrictive Legends ....................................................  18
7.6.  Successors and Assigns .................................................  20
7.7.  Inspections; No Other Representations ..................................  21
7.8.  Entire Agreement .......................................................  21
7.9.  Notices ................................................................  21
7.10. Business Days ..........................................................  22
7.11. Amendments; Waivers ....................................................  22
7.12. Counterparts ...........................................................  22
7.13. Descriptive Headings; Interpretation; No Strict Construction ...........  22
7.14. References .............................................................  23
7.15. Governing Law ..........................................................  23
7.16. Exclusive Jurisdiction; Venue ..........................................  23
7.17. Waiver of Jury Trial ...................................................  24
7.18. Severability ...........................................................  24
7.19. Delivery by Facsimile ..................................................  24
</TABLE>

                                       iii

<PAGE>

Exhibit A  - Form of Preferred Stock Certificate of Designation
Exhibit B  - Form of Warrant Agreement
Exhibit C  - Form of Registration Rights Agreement

                                       iv

<PAGE>

                             TABLE OF DEFINED TERMS
<TABLE>
<S>                                <C>    <C>                                            <C>
Affiliate ........................  16    NMS ..........................................  10
Agreement ........................   1    Notes ........................................  17
Bankruptcy Code ..................   l    Order ........................................  17
Bankruptcy Court .................   1    Person .......................................  17
Bankruptcy Documents .............  16    Plan .........................................  17
beneficial owner .................  16    Preferred Shares .............................   2
beneficially own .................  16    Preferred Stock Certificate of Designation ...   2
Business Day .....................  16    Process Agent ................................  23
Capital Stock ....................  16    PUHCA ........................................   3
Chapter 11 Case ..................   l    PUHCA Regulations ............................   8
Closing ..........................   2    Purchaser ....................................   1
Closing Date .....................   3    Purchaser's Counsel ..........................  17
Commitment .......................  16    Registration Rights Agreement ................  11
Commitment Shares ................   2    Reorganization ...............................   1
Committed Amount .................   2    Rights .......................................   5
Company ..........................   1    Rights Offering ..............................   2
Company Board ....................  16    SCANA ........................................   1
Company Disclosure Schedule ......   3    SCANA Purchase Agreement .....................   1
Confidential Information .........  16    SCANA Securities .............................  l1
Consents, Approvals and Filings ..   6    SCANA Subscription Agreement .................   1
Conversion Shares ................   4    SEC ..........................................   5
Delaware Secretary of State ......   6    SEC Reports ..................................   5
Disclosure Statement .............  16    Securities ...................................   6
Effective Date ...................  17    Securities Act ...............................  18
Encumbrances .....................   3    Separation Date ..............................   8
ETC ..............................   3    Series A Preferred Stock .....................   1
Exchange Act .....................  17    Subsidiary ...................................  18
Filing Date ......................   1    Terminating Company Breach ...................  15
Governmental Entity ..............  17    Terminating Purchaser Breach .................  15
Lanier ...........................   1    Transaction Documents ........................  18
Lanier Subscription Agreement ....   1    Transfer .....................................  12
Laws .............................  17    Transferee ...................................  12
Litigation .......................   5    Warrant Agreement ............................   2
Material Adverse Effect ..........  17    Warrant Shares ...............................   4
New Common Stock .................   1    Warrants .....................................   1
</TABLE>

                                        V

<PAGE>

                               PURCHASE AGREEMENT

          THIS PURCHASE AGREEMENT (this "Agreement"), dated as of August 22,
2002, is made by and between ITC DeltaCom, Inc., a Delaware corporation with its
principal place of business at 1791 O.G. Skinner Drive, West Point, Georgia
31833 (the "Company") and SCANA Corporation, a South Carolina corporation with
its principal place of business at 1426 Main Street, Columbia, South Carolina
29201 (the "Purchaser" or "SCANA)".

                                    RECITALS

          WHEREAS, on June 25, 2002 (the "Filing Date"), the Company filed a
voluntary bankruptcy petition (the "Chapter 11 Case") with the United States
Bankruptcy Court for the District of Delaware (the "Bankruptcy Court") in
contemplation of a financial reorganization (the "Reorganization") pursuant to a
plan of reorganization that will be subject to confirmation pursuant to chapter
11 of title 11 of the United States Code (the "Bankruptcy Code");

          WHEREAS, the Company's plan of reorganization requires the Company to
raise gross proceeds of at least $30,000,000 from the issuance and sale of
shares of convertible redeemable preferred stock, par value $.01 per share, of
the Company (the "Series A Preferred Stock");

          WHEREAS, prior to the filing of the Chapter 11 Case, the Company
entered into (i) a subscription agreement (the "SCANA Subscription Agreement")
with the Purchaser pursuant to which the Purchaser has committed to purchase
Series A Preferred Stock and warrants (the "Warrants") to purchase shares of the
Common Stock, par value $.01 per share, of the Company (the "New Common Stock")
for an aggregate purchase price of $15,000,000; and (ii) a subscription
agreement (the "Lanier Subscription Agreement") with Campbell B. Lanier, III
("Lanier") and ITC Holding Company, Inc. pursuant to which Lanier has committed
to purchase Series A Preferred Stock and Warrants for an aggregate purchase
price of $15,000,000, subject to Lanier's right to assign all or any portion of
his commitment to purchase the Series A Preferred Stock and the Warrants to a
limited number of qualified investors;

          WHEREAS, the Company now wishes, upon the terms and subject to the
conditions set forth in this Agreement, to sell to the Purchaser, and the
Purchaser wishes to purchase from the Company, 150,000 shares of Series A
Preferred Stock and Warrants exercisable for 510,000 shares of New Common Stock
for an aggregate purchase price of $15,000,000;

          WHEREAS, the shares of Series A Preferred Stock and Warrants shall be
issued in units consisting of one share of Series A Preferred Stock and 3.40
Warrants;

          WHEREAS, as of the date hereof and in accordance with the Lanier
Subscription Agreement, Lanier and a number of qualified investors to whom he
has assigned a portion of his commitment have entered into a purchase agreement
(the "Lanier Purchase Agreement") to purchase 150,000 shares of Series A
Preferred Stock and Warrants exercisable for 510,000 shares of New Common Stock
for an aggregate purchase price of $15,000,000 upon the terms and conditions set
forth in such agreement;

<PAGE>

          NOW, THEREFORE, in consideration of the premises and the mutual
representations, warranties, covenants and agreements set forth in this
Agreement, the parties hereto agree as follows:

                                    ARTICLE I
             ISSUANCE AND SALE OF PREFERRED SHARES, WARRANTS AND NEW
                                  COMMON STOCK

          1.1.  Issuance, Purchase and Sale

          (a)   (i) Subject to the terms and subject to the conditions of this
Agreement, the Company shall sell to the Purchaser, and the Purchaser shall
purchase from the Company, 150,000 shares of Series A Preferred Stock (the
"Preferred Shares") at a stated price of $100 per share for an aggregate
purchase price of $15,000,000 (such aggregate purchase price of $15,000,000, as
adjusted pursuant to Section 1.l(a)(ii), the "Committed Amount"). The Preferred
Shares to be purchased and sold at Closing shall be issued pursuant to a
certificate of designation substantially in the form of Exhibit A hereto (the
"Preferred Stock Certificate of Designation").

          (ii)  The Committed Amount shall be reduced by $1.00 for every $2.00
of gross proceeds received by the Company from the sale of Series A Preferred
Stock and Warrants in the rights offering of such securities (the "Rights
Offering") made to holders of common stock and preferred stock of the Company
pursuant to the Plan. Upon any adjustment of the Committed Amount, the number of
Preferred Shares to be purchased and sold at the Closing to the Purchaser
hereunder shall be proportionately reduced. At least two Business Days prior to
Closing, the Company shall provide written notice to the Purchaser of the
amount, if any, by which the Committed Amount shall be reduced as a result of
purchases made pursuant to the Rights Offering.

          (b)   At the Closing, the Company shall issue to the Purchaser 510,000
Warrants for no additional consideration, provided, however, that if the
Committed Amount and the number of Preferred Shares to be purchased and sold at
the Closing shall be reduced pursuant to Section 1.1 (a)(ii) above, the number
of Warrants issuable at the Closing to the Purchaser shall be proportionately
reduced. The Warrants shall be issued pursuant to a warrant agreement,
substantially in the form of Exhibit B hereto, which shall be in effect as of
the Closing (the "Warrant Agreement").

          (c)   At the Closing, the Company shall issue to the Purchaser, in
consideration for its purchase commitment set forth in the SCANA Subscription
Agreement, 500,000 shares of New Common Stock (the "Commitment Shares").

          (d)   The Preferred Shares and Warrants shall be issued at the Closing
in units consisting of one share of Series A Preferred Stock and 3.40 Warrants.

          1.2.  The Closing. closing of the purchase and sale of the Preferred
Shares and Warrants and the issuance of the Commitment Shares (the "Closing")
shall take place at the

                                        2

<PAGE>

offices of Latham & Watkins, 885 Third Avenue, New York, New York 10021 at 10:00
a.m. (New York City time) on the Effective Date (the date of the Closing, the
"Closing Date").

          1.3. Deliveries. At the Closing, the Company shall deliver to the
Purchaser (i) stock certificates, each registered in the name of the Purchaser,
representing the Preferred Shares and the Commitment Shares, (ii) the Warrants,
each of which shall be substantially in the form of the warrant certificate
attached as an exhibit to the Warrant Agreement and (iii) such other instruments
and documents as are specified in Section 5.2. Delivery of such stock
certificates and Warrants and such other instruments and documents shall be made
against receipt by the Company of the purchase price payable therefor equal to
the Committed Amount, which shall be paid by wire transfer of immediately
available funds to an account designated in writing by the Company (such
designation to be received by the Purchaser at least two Business Days prior to
the Closing Date), and such other instruments and documents as are specified in
Section 5.3.

          1.4. Capitalized Terms. Capitalized terms not otherwise defined in
this Agreement shall have the meanings ascribed to such terms in Section 7.1.

                                   ARTICLE II
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

          The Company represents and warrants to the Purchaser, as of the date
hereof and as of the Effective Date (except to the extent that any
representation or warranty herein is stated to be made as of another date, in
which case such representation or warranty shall be true as of that date), as
set forth in this Article II. Each reference in this Article II to a Schedule
shall be to the disclosure schedule delivered by the Company to the Purchaser on
or before the date of this Agreement (the "Company Disclosure Schedule").

          2.1. Organization; Subsidiaries. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware and has the requisite corporate power and authority to carry on its
business as it is now being conducted. The Company is duly qualified and
licensed as a foreign corporation to do business, and is in good standing, in
each jurisdiction in which the character of its assets owned or held under lease
or the nature of its business makes such qualification necessary, except where
the failure so to qualify or be licensed would not, individually or in the
aggregate, have a Material Adverse Effect. The Company is an "exempt
telecommunications company" (an "ETC") as defined in Section 34(a)(1) of the
Public Utility Holding Company Act of 1935, as amended ("PUHCA").

          (b)  Except as set forth on Schedule 2.1(b) or as disclosed in the SEC
Reports or the Bankruptcy Documents, (i) the Company owns, either directly or
indirectly, all of the Capital Stock or other equity interests of the
Subsidiaries free and clear of all liens, charges, claims, security interests,
restrictions, options, proxies, voting trusts or other encumbrances
(collectively, the "Encumbrances") and (ii) there are no outstanding
subscription rights, options, warrants, convertible or exchangeable securities
or other rights of any character whatsoever relating to issued or unissued
Capital Stock or other equity interests of any Subsidiary, or any Commitments of
any character whatsoever relating to issued or unissued Capital Stock or other
equity interests of any Subsidiary or pursuant to which any Subsidiary is or may
become bound

                                        3

<PAGE>

to issue or grant additional shares of its Capital Stock or other equity
interests or related subscription rights, options, warrants, convertible or
exchangeable securities or other rights, or to grant preemptive rights. Except
for the Subsidiaries or as disclosed in the SEC Reports, the Company does not
own, directly or indirectly, any interest in any Person in excess of 9.9% of the
outstanding equity of such Person.

          2.2. Due Authorization Subject to any required approvals of the
Bankruptcy Court, the Company shall have the requisite corporate power and
authority to enter into this Agreement and each of the other Transaction
Documents to which it is a party and shall have the requisite corporate power
and authority to consummate the transactions contemplated hereby and thereby.
The execution and delivery by the Company of this Agreement and each of the
other Transaction Documents to which it is a party, the issuance, sale and
delivery of the Preferred Shares, the Warrants and the Commitment Shares by the
Company, and the compliance by the Company with each of the provisions of this
Agreement and each of the other Transaction Documents to which it is a party
(including the reservation and issuance of the New Common Stock issuable upon
conversion of the Series A Preferred Stock (the "Conversion Shares") and the
reservation, issuance and sale of the New Common Stock issuable upon exercise of
the Warrants (the "Warrant Shares"), and the consummation by the Company of the
transactions contemplated hereby and thereby) (i) are within the corporate power
and authority of the Company and (ii) upon confirmation of the Plan, shall have
been duly authorized by all necessary corporate action of the Company. Subject
to any required approvals of the Bankruptcy Court, this Agreement has been, and
each of the other Transaction Documents to which the Company is a party when
executed and delivered by the Company shall be, duly and validly executed and
delivered by the Company. Assuming due authorization, execution and delivery by
the Purchaser of the Transaction Documents to which it is a party, this
Agreement constitutes, and each of such other Transaction Documents when
executed and delivered by the Company shall constitute, a valid and binding
agreement of the Company enforceable against the Company in accordance with its
terms, except as such enforcement is limited by bankruptcy, insolvency and other
similar laws affecting the enforcement of creditors' rights generally and for
limitations imposed by general principles of equity. The terms, designations,
powers, preferences and relative, participating, optional and other special
rights, qualifications, limitations and restrictions of the Series A Preferred
Stock shall be as set forth in the Preferred Stock Certificate of Designation.
After giving effect to the Reorganization, (x) the Preferred Shares shall be
validly reserved for issuance and, when issued and delivered in accordance with
the terms of this Agreement, shall be validly issued and outstanding, fully paid
and non-assessable, and not subject to the preemptive or other similar rights of
the stockholders of the Company, (y) the Conversion Shares and the Warrant
Shares shall be validly reserved for issuance and, when issued and delivered in
accordance with the terms of the Preferred Stock Certificate of Designation and
the Warrant Agreement, respectively, shall be duly and validly issued and
outstanding, fully paid and non-assessable, and not subject to preemptive or
other similar rights of the stockholders of the Company and (z) the Commitment
Shares, when issued and delivered in accordance with the terms of this
Agreement, shall be validly issued and outstanding, fully paid and
non-assessable, and not subject to the preemptive or other similar rights of the
stockholders of the Company.

          2.3. Capitalization After giving effect to the Reorganization, (i) the
authorized Capital Stock of the Company shall consist of 250,000,000 shares of
New Common

                                        4

<PAGE>

Stock and 5,000,000 shares of preferred stock, par value $.01 share, (ii) all of
the issued and outstanding Capital Stock shall be duly authorized and will be
validly issued, fully paid and non-assessable, (iii) no shares of Capital Stock
of the Company shall be subject to the preemptive or other similar rights of the
stockholders of the Company, and (iv) except as disclosed in the SEC Reports or
the Bankruptcy Documents or as otherwise contemplated by Article I, there shall
be no outstanding subscription rights, options, warrants, convertible or
exchangeable securities or other rights of any character whatsoever
(collectively, "Rights") relating to issued or unissued Capital Stock of the
Company, or any Commitments of any character whatsoever relating to issued or
unissued Capital Stock of the Company or pursuant to which the Company is or may
become bound to issue additional shares of its Capital Stock or grant related
Rights, or to grant preemptive or other similar rights.

          2.4. SEC Reports. Except as set forth on Schedule 2.4, the Company has
timely filed with the Securities and Exchange Commission (the "SEC") all
reports, proxy statements, registration statements and other documents required
to be filed by it under the Securities Act and the Exchange Act since January 1,
2001 (including the financial statements and other financial data contained
therein) (collectively, the "SEC Reports"). On the date of its filing, each SEC
Report did not contain any untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

          2.5. Litigation (a) Except as set forth on Schedule 2.5(a) or as
disclosed in the SEC Reports or the Bankruptcy Documents, there is no claim,
action, suit, investigation or proceeding (collectively, "Litigation") pending
or, to the knowledge of the Company, threatened against the Company or any of
the Subsidiaries or involving any of their respective properties or assets by or
before any court, arbitrator or other Governmental Entity which (i) challenges
or seeks to prevent, enjoin, alter or materially delay the transactions
contemplated by this Agreement or (ii) if resolved adversely to the Company or a
Subsidiary, would reasonably be expected to have a Material Adverse Effect.

          (b)  Except as disclosed in the SEC Reports or the Bankruptcy
Documents, neither the Company nor any of the Subsidiaries is in default under
or in breach of any order, judgment or decree of any court, arbitrator or other
Governmental Entity, except for defaults or breaches which, individually or in
the aggregate, would not reasonably be expected to have a Material Adverse
Effect.

          2.6. Absence of Certain Changes. Except as disclosed in the SEC
Reports or the Bankruptcy Documents, since December 31, 2001, neither the
Company nor any of the Subsidiaries has suffered any change, event or
development or series of changes, events or developments which, individually or
in the aggregate, has had or would reasonably be expected to have a Material
Adverse Effect.

          2.7. Consents; No Violations. After giving effect to the consummation
of the other transactions to occur on the Effective Date, in the case of clauses
(i) and (ii) below, neither the execution, delivery or performance by the
Company of this Agreement or any of the other Transaction Documents to which it
is a party nor the consummation of the transactions contemplated hereby or
thereby shall (i) conflict with, or result in a breach or a violation of, any

                                        5

<PAGE>

provision of the Restated Certificate of Incorporation or bylaws of the Company
or of the certificate of incorporation, bylaws or other organizational documents
of any of the Subsidiaries; (ii) except as set forth on Schedule 2.7,
constitute, with or without notice or the passage of time or both, a breach,
violation or default, create an Encumbrance, or give rise to any right of
termination, modification, cancellation, prepayment, suspension, limitation,
revocation or acceleration, under any Law or any provision of any agreement or
other instrument to which the Company or any of the Subsidiaries is a party or
pursuant to which any of them or any of their assets or properties is subject,
except for breaches, violations, defaults, Encumbrances, or rights of
termination, modification, cancellation, prepayment, suspension, limitation,
revocation or acceleration, which, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect; or (iii) other than as
contemplated by the Bankruptcy Documents, require any consent, order, approval
or authorization of, notification or submission to, filing with, license or
permit from, or exemption or waiver by, any Governmental Entity or any other
Person (collectively, the "Consents, Approvals and Filings") on the part of the
Company or any of the Subsidiaries, except for (a) the filing of the Preferred
Stock Certificate of Designation with the Secretary of State of the State of
Delaware (the "Delaware Secretary of State"), (b) the Consents, Approvals and
Filings required under the Securities Act, the Exchange Act and applicable state
securities laws, (c) the Consents, Approvals and Filings required under rules of
the Nasdaq Stock Market, (d) the Consents, Approvals and Filings set forth on
Schedule 2.7 and (e) such other Consents, Approvals and Filings which the
failure of the Company or any of the Subsidiaries to make or obtain would not
reasonably be expected to have a Material Adverse Effect or materially adversely
affect the ability of the Company to consummate the transactions contemplated by
this Agreement or any Transaction Document.

          2.8. Brokers or Finders. Except for UBS Warburg LLC, Morgan Stanley &
Co. Incorporated and the other Company agents identified in the Bankruptcy
Documents, whose fees shall be paid by the Company, no agent, broker, investment
banker or other Person is or shall be entitled to any broker's or finder's fee
or any other investment banking commission or similar fee from the Company or
any of the Subsidiaries in connection with any of the transactions contemplated
by this Agreement to occur on the Effective Date.

          2.9. No General Solicitation or Advertising; No Integration. With
respect to any offering to the Purchaser of the Preferred Shares, the Warrants,
the Commitment Shares, the Conversion Shares or the Warrant Shares
(collectively, the "Securities") made without registration under the Securities
Act and applicable state securities laws, the Company has not (i) engaged in any
general solicitation or general advertising (as such terms are used in Rule
502(c) of the Securities Act), or (ii) made any offers or sales of any security
under circumstances that would require registration of the Securities being
offered or sold under this Agreement under the Securities Act or any state
securities law.

                                   ARTICLE III
                 REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

          The Purchaser represents and warrants to the Company with respect to
the Securities it is acquiring hereunder as of the date hereof and as of the
Effective Date, as set forth in this Article III.

                                        6

<PAGE>

          3.1. Acquisition for Investment. The Purchaser is acquiring the
Securities for its own account, for investment and not with a view to, or for
sale in connection with, the distribution thereof within the meaning of the
Securities Act (it being understood that except as otherwise provided in this
Agreement and the Transaction Documents to which it is a party, the Purchaser
does not agree to hold the Securities for any minimum or other specific term and
reserves the right to dispose of the Securities at any time in accordance with
the Securities Act and state securities laws applicable to such disposition).

          3.2. Accredited Investor Status. The Purchaser is an "accredited
investor," as that term is defined in Rule 501(a) of Regulation D under the
Securities Act. The Purchaser has sufficient knowledge and experience in
financial and business matters so as to be capable of evaluating the merits and
risks of its investment in the Securities and is capable of bearing the economic
risks of such investment. The Purchaser understands that its investment in the
Securities involves a significant degree of risk.

          3.3. Information. The Purchaser and its advisers have been furnished
with all materials relating to the business, finances and operations of the
Company and its Subsidiaries and materials relating to the offer and sale of the
Securities which have been requested by the Purchaser or its advisers. The
Purchaser and its advisers have been afforded the opportunity to ask questions
of the Company's management concerning the Company and its Subsidiaries and the
Securities. The Purchaser has been provided with copies of, and has carefully
reviewed, the SEC Reports and the Bankruptcy Documents.

          3.4. Government Review. The Purchaser understands that no Governmental
Entity has passed upon or made any recommendation or endorsement of the
Securities.

          3.5. Sale or Transfer. The Purchaser understands that (i) except as
provided in this Agreement or the Registration Rights Agreement, the sale or
re-sale of the Securities has not been and is not being registered under the
Securities Act or any applicable state securities laws, and the Securities may
not be sold or otherwise transferred unless (a) the Securities are sold or
transferred pursuant to an effective registration statement under the Securities
Act and applicable state securities laws, (b) the Purchaser shall have delivered
to the Company an opinion of counsel (which opinion shall be in form, substance
and scope customary for opinions of counsel in comparable transactions) to the
effect that the Securities to be sold or transferred may be sold or transferred
pursuant to an exemption from such registration, or (c) the Securities are sold
pursuant to Rule 144 under the Securities Act; (ii) any sale of such Securities
made in reliance on Rule 144 may be made only in accordance with the terms of
such Rule and further, if such Rule is not applicable, any sale of such
Securities under circumstances in which the seller (or the person through whom
the sale is made) may be deemed to be an underwriter (as that term is defined in
the Securities Act) may require compliance with another exemption under the
Securities Act or the rules and regulations of the SEC thereunder; and (iii)
neither the Company nor any other Person is under any obligation to register
such Securities under the Securities Act or any state securities laws or to
comply with the terms and conditions of any exemption thereunder (in each case,
other than pursuant to the Registration Rights Agreement). The Purchaser shall
not transfer any of the Securities held by the Purchaser to any Affiliate of the
Purchaser whose acquisition or ownership of such Securities would reasonably be
likely to result

                                        7

<PAGE>

in the Company or any of its Subsidiaries becoming subject to regulation
pursuant to PUHCA the PUHCA Regulations other than such regulation which is
applicable to an ETC that is an affiliate of a public utility holding company
registered under PUHCA. The Preferred Shares the Warrants constituting units
shall not become separately transferable until the first anniversary of the
Closing Date (such first anniversary of the Closing Date, a "Separation Date").

         3.6. Residency. The principal offices of the Purchaser and the offices
of the Purchaser in which it made its decision to purchase the Securities are
located at the address set forth in the preamble to this Agreement.

         3.7. No Brokers or Finders. No agent, broker, investment banker or
other Person is or shall be entitled to any broker's or finder's fee or any
other commission or similar fee from the Purchaser in connection with the
transactions contemplated by this Agreement to occur on the Closing Date.

         3.8. Organization. (a) The Purchaser is an entity duly organized,
validly existing and in good standing under the laws of its jurisdiction of
formation and has the requisite power and authority to carry on its business as
it is now being conducted.

         (b) The Purchaser is registered with the SEC as a public utility
holding company under PUHCA. Neither the execution, delivery or performance by
the Purchaser of this Agreement nor the performance by the Purchaser of any
other Transaction Documents to which the Purchaser is a party, including the
acquisition and ownership of the Securities by the Purchaser, shall result in
the Company or any of its Subsidiaries becoming subject to regulation pursuant
to PUHCA or the rules and regulations promulgated thereunder (the "PUHCA
Regulations") other than such regulation which is applicable to an ETC that is
an affiliate of a public utility holding company registered under PUHCA. Neither
the Company nor any of its Subsidiaries shall be required prior to, in
connection with, or as a result of the acquisition and ownership of Securities
by the Purchaser to make or obtain any Consents, Approvals and Filings with the
SEC, the Federal Communications Commission or any other Governmental Entity
pursuant to PUHCA or the PUHCA Regulations.

         3.9. Due Authorization. The Purchaser has the requisite power and
authority to enter into this Agreement and each of the other Transaction
Documents to which it is a party and to consummate the transactions contemplated
hereby and thereby. The execution and delivery by the Purchaser of this
Agreement and each of the other Transaction Documents to which it is a party and
the compliance by the Purchaser with each of the provisions of this Agreement
and each of the Transaction Documents to which it is a party (including the
consummation by the Purchaser of the transactions contemplated hereby and
thereby) (i) are within the power and authority of the Purchaser and (ii) have
been duly authorized by all necessary action on the part of the Purchaser. This
Agreement has been, and each of the other Transaction Documents to which it is a
party when executed and delivered by the Purchaser shall be, duly and validly
executed and delivered by the Purchaser. Assuming due authorization, execution
and delivery by the Company of the Transaction Documents to which it is a party,
this Agreement constitutes, and each of such other Transaction Documents when
executed and delivered by the Purchaser shall constitute, a valid and binding
agreement of the Purchaser enforceable against the Purchaser in accordance with
its terms, except as such enforcement is

                                       8

<PAGE>

limited by bankruptcy, insolvency and other similar laws affecting the
enforcement of creditors' rights generally and for limitations imposed by
general principles of equity.

         3.10. Consents; No Violations. Neither the execution, delivery or
performance by the Purchaser of this Agreement or any of the other Transaction
Documents to which it is a party nor the consummation of the transactions
contemplated hereby or thereby shall (i) conflict with, or result in a breach or
a violation of, any provision of the certificate of incorporation, bylaws or
other organizational documents of the Purchaser; (ii) constitute, with or
without notice or the passage of time or both, a breach, violation or default,
create an Encumbrance, or give rise to any right of termination, modification,
cancellation, prepayment, suspension, limitation, revocation or acceleration,
under any Law, or any provision of any agreement or other instrument to which
the Purchaser is a party or pursuant to which the Purchaser or any of its assets
or properties is subject, except for breaches, violations, defaults,
Encumbrances, or rights of termination, modification, cancellation, prepayment,
suspension, limitation, revocation or acceleration, which, individually or in
the aggregate, would not materially adversely affect the ability of the
Purchaser to consummate the transactions contemplated by this Agreement or any
Transaction Document to which it is a party; or (iii) require any Consents,
Approvals and Filings on the part of the Purchaser, except for (a) the Consents,
Approvals and Filings required under the Exchange Act and applicable state
securities laws, (b) the Consents, Approvals and Filings set forth on Schedule
3.10 and (c) such other Consents, Approvals and Filings which the failure of the
Purchaser to make or obtain would not materially adversely affect the ability of
the Purchaser to consummate the transactions contemplated by this Agreement or
any Transaction Document.

         3.11. Litigation. There is no Litigation pending or, to the knowledge
of the Purchaser, threatened against the Purchaser or any of its Affiliates or
involving any of its properties or assets by or before any court, arbitrator or
other Governmental Entity which in any manner challenges or seeks to prevent,
enjoin, alter or materially delay the transactions contemplated by this
Agreement.

         3.12. Availability of Funds. The Purchaser has sufficient funds to pay
the purchase price for the Preferred Shares and the Warrants to be acquired by
it hereunder.

                                   ARTICLE IV
                                    COVENANTS

         4.1.  Public Announcements. The Company and the Purchaser shall consult
with each other before issuing any press release with respect to this Agreement
or the transactions contemplated hereby and shall not issue any such press
release or make any such public statement with respect thereto without the prior
consent of the other, which consent shall not be unreasonably withheld, delayed
or conditioned; provided, however, that a party may, without the prior consent
of the other party, issue such press release or make such public statement as
may upon the advice of counsel be required by Law, by rules of the Nasdaq Stock
Market, by any other automated quotation system on which the Company's
securities or, if applicable, the Purchaser's securities are quoted or to be
quoted or by any national securities exchange on which the Company's securities
or, if applicable, the securities of the Purchaser are

                                        9

<PAGE>

listed or to be listed provided, further, that, to the extent time permits, such
party has used all reasonable best efforts to consult with the other parties
prior thereto.

         4.2. Consents, Approvals and Filings. Subject to the terms of this
Agreement and the confirmation of the Plan, the Company and the Purchaser shall
each use its reasonable best efforts to take, or cause to be taken, all actions,
and do, or cause to be done, and to assist and cooperate with the other party in
doing, all things necessary, proper, desirable or advisable to obtain and make
all Consents, Approvals and Filings required to be obtained or made by the
Company and its Subsidiaries or the Purchaser, as the case may be, in connection
with the authorization, execution, delivery and performance of this Agreement
and the consummation of the transactions contemplated hereby.

         4.3. Reasonable Best Efforts. Except as otherwise expressly provided in
this Agreement and subject to the Company's duties and obligations under Law
(including, without limitation, the Bankruptcy Code), the Company and the
Purchaser each shall use its reasonable best efforts to take, or cause to be
taken, all actions and to do, or cause to be done, all things necessary, proper
or advisable under applicable Laws to consummate the transactions contemplated
by this Agreement. In furtherance and not in limitation of the other covenants
of the parties contained in this Agreement, if any administrative or judicial
action or proceeding, including any proceeding by a private party, is instituted
(or threatened to be instituted) challenging any transaction contemplated by
this Agreement, each party shall cooperate in all respects with the other party
and use its reasonable best efforts to contest and resist any such action or
proceeding and to have vacated, lifted, reversed or overturned any decree,
judgment, injunction or other order, whether temporary, preliminary or
permanent, that is in effect and that prohibits, prevents or restricts the
consummation of the transactions contemplated by this Agreement.

         4.4. Listing. The Company shall use reasonable efforts to have the New
Common Stock quoted on the National Market System of the Nasdaq Stock Market
(the "NMS") or listed on a national securities exchange or quoted on another
national automated quotation system other than the NMS for so long as any
Securities are outstanding.

         4.5. Preferred Stock Certificate of Designation. On or prior to the
Closing Date, the Company Board shall approve and adopt the Preferred Stock
Certificate of Designation authorizing such Preferred Shares, and the Company
shall cause such Preferred Stock Certificate of Designation to be filed with the
Delaware Secretary of State.

         4.6. Reservation of New Common Stock. From and after the Closing Date,
the Company at all times shall reserve and keep available, free of preemptive
rights, solely for issuance and delivery upon conversion of the Preferred Shares
and upon exercise of the Warrants, the number of shares of New Common Stock from
time to time issuable upon conversion of all of the Preferred Shares or upon
exercise of the Warrants, in each case at the time outstanding.

         4.7. Board Representation Rights. The Company shall take all corporate
action necessary to provide the Purchaser with the benefit of the Company Board
representation rights set forth in the Preferred Stock Certificate of
Designation.

                                       10

<PAGE>

         4.8.    Confidential Treatment of Confidential Information. (a) In the
event the Purchaser (including its officers, employees, counsel, accountants,
partners and other authorized representatives) obtains from the Company or the
Subsidiaries any Confidential Information, the Purchaser (i) shall treat all
such Confidential Information as confidential, (ii) shall use such Confidential
Information only for the purposes contemplated in this Agreement and (iii) shall
not disclose such Confidential Information to any third party except to such
officers, employees, counsel, accountants, partners and other authorized
representatives of the Purchaser who need to know such Confidential Information
for the purpose of effectuating the transactions contemplated by this Agreement
and who have been informed of and have agreed to protect the confidential nature
of such Confidential Information (and the Purchaser shall be responsible for
compliance with this Section 4.8 by such officers, employees, counsel,
accountants, partners and other authorized representatives). Notwithstanding the
preceding sentence, if the Purchaser or any of its authorized representatives
becomes legally required pursuant to applicable law or regulation (including
securities laws or regulations or the regulations of the NMS or any applicable
stock exchange) or regulatory, legal or judicial process (including by
deposition, interrogatory, request for documents, subpoena or similar process)
to disclose any of the Confidential Information, the Purchaser shall provide the
Company with prompt prior written notice of such requirement so that the Company
may seek a protective order or other appropriate remedy or waive in writing
compliance with the provisions of this Agreement. If such protective order or
other remedy is not obtained and such a written waiver has not been received
from the Company that would permit such required disclosure, the Purchaser and
its authorized representatives shall disclose only that portion of the
Confidential Information which the Purchaser is advised in the opinion of its
counsel is legally required to be disclosed and shall take all reasonable steps
to preserve the confidentiality of the Confidential Information by cooperating
with the Company to obtain an appropriate protective order or other reliable
assurance that confidential treatment will be accorded the Confidential
Information.

         (b)  Upon the Company's request at any time, the Purchaser shall (i)
return to the Company or destroy all documents (including any copies thereof)
embodying the Confidential Information and (ii) certify in writing to the
Company, within ten days following the Company's request, that all such
Confidential Information has been returned or destroyed.

         4.9.    Registration Rights. On or prior to the Closing Date, the
Company shall enter into the Registration Rights Agreement with the Purchaser
and with each of the purchasers pursuant to the Lanier Purchase Agreement
substantially in the form of Exhibit C hereto (the "Registration Rights
Agreement"), which agreement shall then be in full force and effect, and the
Company shall comply with the terms thereof.

         4.10.   Obligation of the Purchaser to Vote in Favor of the Plan. The
Purchaser hereby acknowledges to the Company that it supports the terms of the
Plan. The Purchaser agrees that, for so long as it is the beneficial owner of
Notes, common stock of the Company or Series B-1 or Series B-2 Cumulative
Convertible Preferred Stock of the Company (collectively, the "SCANA
Securities"), it (i) shall vote, or shall cause its Subsidiaries that own SCANA
Securities of record to vote, its claims in respect of the SCANA Securities in
favor of the Plan and (ii) shall not object to, delay, impede or take any other
action to interfere, directly or indirectly, with the acceptance or
implementation of the Plan, including commencing any action to oppose or object
to the Plan. The provisions of this Section 4.10 shall not in any way limit or

                                       11

<PAGE>

condition the right of the Purchaser or any of its subsidiaries to sell,
transfer or otherwise dispose of (a "Transfer") any or all of the SCANA
Securities at any time or to any person (a "Transferee") in the sole and
absolute discretion of the Purchaser or any such Subsidiary; provided, however,
that, if and to the extent that the Purchaser or any such Subsidiary Transfers
any of the SCANA Securities before the date of confirmation of the Plan, the
Purchaser shall use its reasonable best efforts to obtain, or to cause such
Subsidiary to obtain, the agreement of the Transferee prior to the effectiveness
of such Transfer to be bound by the terms of this Section 4.10 with respect to
the SCANA Securities being Transferred to the Transferee. Such agreement of the
Transferee shall be confirmed in a writing, which may include a trade
confirmation issued by a broker or dealer, acting as principal or as agent for
the Transferee, stating that such agreement is a term of such Transfer.

         4.11. Further Assurances. At any time or from time to time after the
date of this Agreement, the Company and the Purchaser agree to cooperate with
each other, and at the request of the other party, to execute and deliver any
further instruments or documents and to take all such further action as the
other party may reasonably request in order to evidence or effectuate the
consummation of the transactions contemplated by this Agreement or by the other
Transaction Documents and otherwise to carry out the intent of the parties
hereunder or thereunder.

         4.12. Waiver of Right to Participate in Rights Offering. The Purchaser
hereby irrevocably and unconditionally waives any and all rights that it has as
of the date hereof or may have after the date hereof to subscribe for Series A
Preferred Stock and Warrants pursuant to the Rights Offering.

                                    ARTICLE V
                                   CONDITIONS

         5.1.  Conditions to Obligations of the Purchaser and the Company at
Closing. The obligations of the Purchaser and the Company to consummate the
transactions contemplated hereby to be consummated at the Closing are subject to
the satisfaction or waiver at or prior to the Closing Date of each of the
following conditions:

         (a) no preliminary or permanent injunction or other Order by any
     Governmental Entity which prevents the consummation of the transactions
     contemplated hereby shall have been issued and remain in effect (each party
     agreeing to use its reasonable best efforts to have any such injunction or
     Order lifted);

         (b) no statute, rule, regulation or other Law shall have been enacted
     by any Governmental Entity which would prevent or make illegal the
     consummation of the transactions contemplated by this Agreement;

         (c) any Consents, Filings and Approvals that are necessary for the
     consummation of the transactions contemplated by this Agreement shall have
     been made or obtained except where (i) the Company's failure to make or
     obtain such Consents, Filings and Approvals would not have a Material
     Adverse Effect or a material adverse effect on the Company's ability to
     perform its obligations under this Agreement,

                                       12

<PAGE>

     provided that any failure by the Company to obtain any necessary or
     required consents from any party to lawsuits or other proceedings which
     challenge the Company's rights to use its network easements, rights-of-way,
     franchises or licenses shall not be deemed a failure to satisfy this
     condition, or (ii) the failure of the Purchaser to obtain such Consents,
     Filings and Approvals would not have a material adverse effect on the
     ability of the Purchaser to perform its obligations under this Agreement;

         (d) the Company's plan of reorganization shall have been confirmed by
     the Bankruptcy Court on substantially the terms set forth in the Plan, and
     an unstayed order by such Bankruptcy Court approving the transactions
     contemplated by the Company's plan of reorganization on substantially the
     terms set forth in the Plan shall have been entered, on or before December
     31, 2002; and

         (e) the other transactions contemplated by the Plan to occur on the
     Effective Date (including, without limitation, the cancellation of the
     Notes and the Company's existing equity securities and the issuance of the
     New Common Stock) shall have been consummated substantially concurrently
     with the sale and purchases under this Agreement on substantially the terms
     set forth in the Plan.

         5.2.   Additional Conditions to Obligations of the Purchaser at the
Closing. The obligations of the Purchaser to consummate the transactions
contemplated hereby to be consummated at the Closing shall be subject to the
satisfaction or waiver at or prior to the Closing Date of each of the following
additional conditions:

         (a) the representations and warranties of the Company contained in this
     Agreement shall have been true and correct in all respects at and as of the
     date they were made, and shall be true and correct in all respects at and
     as of the Closing Date (unless any such representations and warranties are
     stated to be made as of a date other than the date hereof, in which case
     they shall have been true and correct in all respects as of that date);
     provided, that this condition shall be deemed satisfied unless the failure
     of such representations and warranties to be true and correct in all
     respects (without regard to any qualifiers with respect to materiality or
     Material Adverse Effect set forth therein) would have, in the aggregate, a
     Material Adverse Effect or would have, in the aggregate, a material adverse
     effect on the Company's ability to perform its obligations under this
     Agreement;

         (b) the Company shall have performed, in all material respects, all of
     its obligations contemplated herein to be performed by the Company on or
     prior to the Closing Date;

         (c) from the date hereof through the Closing Date, there shall not have
     occurred, and be continuing, a Material Adverse Effect;

         (d) the Company and the holders of Notes representing at least 51% of
     the principal amount of all outstanding Notes (including Appaloosa
     Management L.P. and its affiliates that beneficially own or control Notes)
     shall be legally bound by releases as set forth in Sections 11.6 and 11.7
     of the Plan;

                                       13

<PAGE>

         (e) the Preferred Stock Certificate of Designation with respect to the
     Preferred Shares to be issued at the Closing and as dividends on the
     Preferred Shares shall have been duly filed with the Delaware Secretary of
     State in accordance with the laws of the State of Delaware, and the
     Preferred Stock Certificate of Designation shall be in full force and
     effect and the Purchaser shall have received evidence of such filing;

         (f) the Warrants shall be duly issued in accordance with the Warrant
     Agreement and the Warrant Agreement shall be in full force and effect;

         (g) the Conversion Shares issuable upon conversion of the Preferred
     Shares and the Warrant Shares issuable upon exercise of the Warrants shall
     have been duly authorized and reserved for issuance;

         (h) the Company shall have delivered the following to the Purchaser:

             (i)   an officer's certificate certifying as to the Company's
         compliance with the conditions set forth in clauses (a) and (b) of this
         Section 5.2;

             (ii)  a counterpart of the Registration Rights Agreement executed
         by the Company;

             (iii) the certificates and Warrants specified in Section 1.1 (b);

             (iv)  such other documents as may be required by this Agreement or
         reasonably requested by the Purchaser.

         5.3. Additional Conditions to Obligations of the Company at the
Closing. The obligations of the Company to consummate the transactions
contemplated hereby to be consummated at the Closing shall be subject to the
satisfaction or waiver at or prior to the Closing Date of each of the following
additional conditions:

         (a) the representations and warranties of the Purchaser contained in
     this Agreement shall have been true and correct in all respects at and as
     of the date they were made, and shall be true and correct in all respects
     at and as of the Closing Date (unless any such representations and
     warranties are stated to be made as of a date other than the date hereof,
     in which case they shall have been true and correct in all respects as of
     that date); provided, that this condition shall be deemed satisfied unless
     the failure of such representations and warranties to be true and correct
     in all respects (without regard to any qualifiers with respect to
     materiality or material adverse effect set forth therein) would have, in
     the aggregate, a material adverse effect on the Purchaser's ability to
     perform its obligations under this Agreement;

         (b) the Purchaser shall have performed, in all material respects, all
     of its obligations contemplated herein to be performed by the Purchaser on
     or prior to the Closing Date;

         (c) the Purchaser shall have delivered the following to the Company:

                                       14

<PAGE>

               (i)  the Committed Amount, as adjusted in accordance with Section
        1.1.(a)(ii), payable for the Preferred Shares being purchased by the
        Purchaser at the Closing; and

               (ii) such other documents as may be required by this Agreement or
        reasonably requested by the Company.

                                   ARTICLE VI
                                   TERMINATION

         6.1. Termination This Agreement may be terminated at any time before
the Closing Date:

         (a) by mutual written agreement of the Company and the Purchaser;

         (b) by the Company (i) upon a breach of any covenant or agreement on
     the part of the Purchaser set forth in this Agreement or if any
     representation or warranty of any Purchaser set forth in this Agreement
     shall not be true and correct, in either case such that the conditions set
     forth in Section 5.3(a) or 5.3(b) would not be satisfied (a "Terminating
     Purchaser Breach"); provided, that such Terminating Purchaser Breach shall
     not have been waived or cured within 30 days after written notice of the
     Terminating Purchaser Breach is given to the Purchaser by the Company; or
     (ii) if any condition to the Company's obligations to close at the Closing
     set forth in Article V has not been satisfied as of the Closing Date or
     satisfaction of such a condition is or becomes impossible (other than
     because of the failure of the Company to comply with its obligations under
     this Agreement), and the Company has not waived such condition; and

         (c) by the Purchaser (i) upon a breach of any covenant or agreement on
     the part of the Company set forth in this Agreement or if any
     representation or warranty of the Company set forth in this Agreement shall
     not be true and correct, in either case such that the conditions set forth
     in Section 5.2(a) or 5.2(b) would not be satisfied (a "Terminating Company
     Breach"); provided, that such Terminating Company Breach shall not have
     been waived or cured within 30 days after written notice of such
     Terminating Company Breach is given to the Company by the Purchaser; or
     (ii) if any condition to the Purchaser's obligations to close set forth in
     Article V has not been satisfied as of the Closing Date or satisfaction of
     such a condition is or becomes impossible (other than because of the
     failure of the Purchaser to comply with its obligations under this
     Agreement), and the Purchaser has not waived such condition.

         6.2. Effect of Termination If this Agreement is terminated by either
the Company or the Purchaser pursuant to the provisions of Section 6.1, this
Agreement shall forthwith become void and there shall be no further obligations
with respect to the sale and purchase of the Securities on the part of the
Company or the Purchaser or their respective stockholders, directors, officers,
employees, agents or representatives, except for the Sections 4.1, 4.8, 7.1,
7.2, 7.3, 7.4, 7.8, 7.9, 7.13, 7.14, 7.15, 7.16 and 7.17, all of which shall
survive any termination of this Agreement; provided, that nothing in this
Section 6.2 shall relieve either party from liability for any willful breach of
this Agreement.

                                       15

<PAGE>

                                   ARTICLE VII
                                  MISCELLANEOUS

         7.1. Definitions. The following terms, as used in this Agreement, shall
have the following meanings:

         "Affiliate" shall have the meaning ascribed to such term in Rule 12b-2
under the Exchange Act.

         "Bankruptcy Documents" shall mean the Plan and the Disclosure
Statement.

         "beneficial owner" or "beneficially own," or any derivation of such
terms, shall have the meaning set forth in Rule 13d-3 under the Exchange Act.

         "Business Day" shall mean any day except Saturday, Sunday and any legal
holiday or a day on which banking institutions in The City of New York or the
State of Georgia generally are authorized or required by law or other
governmental actions to close.

         "Capital Stock" shall mean, with respect to any Person, any and all
shares, interests, participations, rights in, or other equivalents (however
designated and whether voting or non-voting) of such Person's capital stock, and
any and all rights (other than any evidence of indebtedness), warrants or
options exchangeable for or convertible into such capital stock.

         "Commitment" shall mean a contract, agreement, understanding,
arrangement and commitment of any nature whatsoever, whether written or oral,
including all amendments thereof and supplements thereto.

         "Company Board" shall mean the Board of Directors of the Company.

         "Confidential Information" shall mean information relating to the
Company's business, intellectual property and processes, operations, strategies,
liquidity and financial condition, Reorganization terms, pricing policies,
markets, customers, distribution, sales, marketing and production and future
business plans and any other information of a "confidential" nature,
specifically including any information that is identified orally or in writing
by the Company to be confidential, or that the Purchaser should reasonably
understand under the circumstances to be a trade secret or information of a
similar nature, provided, that Confidential Information shall not include any
such information which (i) was in the public domain on the date hereof or
subsequently comes into the public domain other than through the fault or
negligence of the Purchaser, (ii) was lawfully obtained by the Purchaser from a
third party without breach of this Agreement and otherwise not in violation of
the Company's rights, (iii) was known to the Purchaser at the time of disclosure
of such Confidential Information to the Purchaser by the Company, provided that
the Purchaser was not, at such time, subject to any confidentiality obligation
with respect thereto, or (iv) was independently developed by the Purchaser
without making use of any Confidential Information.

         "Disclosure Statement" shall mean the Company's disclosure statement,
dated August 22, 2002 and as amended or supplemented through the date hereof,
relating to the Plan,

                                       16

<PAGE>

including, without limitation, all exhibits and schedules thereto, which is
subject to approval by the Bankruptcy Court pursuant to Section 1125 of the
Bankruptcy Code.

         "Effective Date" shall mean the date upon which the transactions
contemplated by the Plan to become effective on such date, including, without
limitation, including the cancellation of the Notes and the Company's existing
equity securities and the issuance of the New Common Stock, become effective.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended, or any successor federal statute, in each case as the same shall be in
effect at the time.

         "Governmental Entity" shall mean any supranational, or United States or
foreign national, federal, state or local, judicial, legislative, executive,
administrative or regulatory body or authority.

         "Laws" shall mean all United States and foreign national, federal,
state, and local laws, statutes, ordinances, rules, regulations, orders, and
decrees.

         "Material Adverse Effect" shall mean a material adverse effect on the
business, financial condition or results of operations of the Company and its
Subsidiaries, taken as a whole; except that any of the following changes,
events, conditions or effects shall not constitute a "Material Adverse Effect":
(i) changes or conditions in the industry or the industry sector in which the
Company and its Subsidiaries operate that do not disproportionately affect the
Company and its Subsidiaries; (ii) the effect of the pendency or consummation of
the transactions contemplated by this Agreement; (iii) any material adverse
effect that shall have been or will be eliminated or rendered immaterial by the
Reorganization as of the Effective Date; or (iv) a bankruptcy filing or filings
of the Company and one or more of the Company's Subsidiaries and the
continuation of such bankruptcy cases.

         "Notes" shall mean the Company's 11% Senior Notes due 2007, 8? % Senior
Notes due 2008, 9 3/4% Senior Notes due 2008 and 4 1/2% Convertible Subordinated
Notes due 2006.

         "Order" shall mean any order, judgment, injunction, edict, decree,
ruling, pronouncement, determination, decision, opinion, sentence, subpoena,
writ or award issued, made, entered or rendered by any court, administrative
agency or other Governmental Entity or by any arbitrator.

         "Person" shall mean any individual, firm, corporation, limited
liability company, partnership, company or other entity, and shall include any
successor (by merger or otherwise) of such entity.

         "Plan" shall mean the Company's plan of reorganization, dated August
22, 2002 and as amended or supplemented through the date hereof, which is
subject to confirmation by the Bankruptcy Court.

         "Purchaser's Counsel" shall mean McNair Law Firm, P.A.

                                       17

<PAGE>

         "Restated Certificate of Incorporation" shall mean the certificate of
incorporation of the Company, restated and filed pursuant to the Plan and
including the Preferred Stock Certificate of Designation.

         "Securities Act" shall mean the Securities Act of 1933, as amended, or
any successor federal statute, in each case as the same shall be in effect at
the time.

         "Subsidiary" shall mean in the case of any Person, each corporation,
partnership or other entity of which shares of Capital Stock or other equity
interests having ordinary voting power (other than Capital Stock or other equity
interests having such power only by reason of the happening of a contingency) to
elect a majority of the board of directors or other managers of such
corporation, partnership or other entity are at the time owned, directly or
indirectly, or the management of which is otherwise controlled, directly or
indirectly, or both, by such Person and which, in the case of the Company, shall
be each corporation, partnership or other entity listed on Schedule 7.1.

         "Transaction Documents" shall mean this Agreement, the Preferred Stock
Certificate of Designation, the Warrant Agreement, the Warrants and the
Registration Rights Agreement.

         7.2. Survival of Representations and Warranties. All representations
and warranties set forth in this Agreement or in any writing delivered by any
party in connection herewith shall survive the transactions contemplated by this
Agreement to be consummated at the Closing (regardless of any investigation,
inquiry, or examination made by any party or on its behalf or any knowledge of
any party or the acceptance by any party of any certificate or opinion) for a
period of one year following the Closing Date.

         7.3. Fees and Expenses. On the Closing Date, the Company shall pay, in
an amount not to exceed $75,000, the reasonable fees and expenses of Purchaser's
Counsel and all other costs and expenses incurred by the Purchaser in connection
with the negotiation, preparation, execution, delivery and performance of this
Agreement in connection with the negotiation, preparation, execution, delivery
and performance of this Agreement.

         7.4. Enforcement. The parties hereto agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific intent or were otherwise breached.
It is accordingly agreed that the parties shall be entitled to an injunction or
injunctions to prevent or cure breaches of the provisions of this Agreement and
to enforce specifically the terms and provisions hereof, in addition to any
other remedy to which they may be entitled by law or equity.

         7.5. Restrictive Legends. (a) Each certificate representing any of the
Preferred Shares shall bear a legend in substantially the following form:

         THE SECURITIES EVIDENCED BY THIS CERTIFICATE SHALL BE REDEEMABLE AND
         CONVERTIBLE INTO THE COMPANY'S COMMON STOCK IN THE MANNER AND ACCORDING
         TO THE TERMS SET FORTH IN THE CERTIFICATE OF DESIGNATION.

                                       18

<PAGE>

               (b)   Each certificate representing any of the Preferred Shares,
Conversion Shares, Warrant Shares or Commitment Shares shall bear legends in
substantially the following form:

               THE CORPORATION IS AUTHORIZED TO ISSUE MORE THAN ONE CLASS OR
               SERIES OF CAPITAL STOCK. THE CORPORATION SHALL FURNISH TO ANY
               HOLDER UPON REQUEST AND WITHOUT CHARGE THE POWERS, DESIGNATIONS,
               PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR OTHER
               SPECIAL RIGHTS OF EACH CLASS OF STOCK OR SERIES THEREOF AND THE
               QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH PREFERENCES
               AND/OR RIGHTS OF EACH CLASS OR SERIES AUTHORIZED TO BE ISSUED BY
               THE CORPORATION SO FAR AS THEY HAVE BEEN FIXED AND DETERMINED AND
               OF THE AUTHORITY OF THE BOARD OF DIRECTORS TO FIX AND DETERMINE
               THE DESIGNATIONS, VOTING RIGHTS, PREFERENCES, LIMITATIONS AND
               SPECIAL RIGHTS OF THE CLASSES AND SERIES OF SECURITIES OF THE
               CORPORATION.

               THE SECURITIES EVIDENCED BY THIS CERTIFICATE MAY NOT BE SOLD,
               PLEDGED, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN
               ACCORDANCE WITH AND SUBJECT TO THE PROVISIONS OF A PURCHASE
               AGREEMENT DATED AS OF AUGUST 22, 2002, AS AMENDED FROM TIME TO
               TIME (THE "PURCHASE AGREEMENT"). A COPY OF THE PURCHASE AGREEMENT
               IS AVAILABLE UPON REQUEST FOR INSPECTION AT THE OFFICES OF THE
               CORPORATION.

               The second legend set forth immediately above and any applicable
stop transfer orders shall be removed, and the Company shall issue certificates
without such legend, with respect to any of such Securities transferred in any
sale or transfer permitted by the terms of this Agreement with respect to which
the provisions of this Agreement provide that the transferee of such Securities
shall not be subject to the restrictions of this Agreement.

               In addition, certificates representing any of the Preferred
Shares, Conversion Shares, Warrant Shares or Commitment Shares issued in a
transaction exempt from the registration requirements of the Securities Act and
applicable state securities laws, or as to which the subsequent transfer or
disposition of such Securities shall require registration or qualification
thereof under the Securities Act or applicable state securities laws, shall bear
a legend in substantially the following form:

               THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
               REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
               "SECURITIES ACT"), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS,
               OR ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES
               ACT AND SUCH LAWS. THE SECURITIES MAY NOT BE SOLD,

                                       19

<PAGE>

         PLEDGED, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN A
         TRANSACTION WHICH IS EXEMPT UNDER THE PROVISIONS OF THE SECURITIES ACT
         AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE
         REGISTRATION STATEMENT OR IN A TRANSACTION OTHERWISE IN COMPLIANCE WITH
         APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THE CORPORATION RESERVES
         THE RIGHT PRIOR TO ANY SUCH TRANSACTION TO REQUIRE AN OPINION OF
         COUNSEL SATISFACTORY TO IT WITH RESPECT TO COMPLIANCE WITH THE
         FOREGOING RESTRICTIONS.

         The legend set forth immediately above and any applicable stop transfer
orders shall be removed, and the Company shall issue certificates without such
legend, with respect to any of such Securities with respect to which the Company
has received an opinion from counsel to the Purchaser, in form and substance and
from counsel reasonably satisfactory to the Company (which opinion shall be in
addition to any opinion required to be provided pursuant to Section 3.5), to the
effect that the subsequent transfer or other disposition of such Securities
shall not require registration under the Securities Act.

         (c)  Each certificate representing any of the Preferred Shares issued
prior to the applicable Separation Date shall also bear a legend in
substantially the following form:

         THE SECURITIES EVIDENCED BY THIS CERTIFICATE WERE INITIALLY ISSUED IN
         UNITS AS PART OF AN ISSUANCE OF                SHARES OF THE
         CORPORATION'S 8% SERIES A CONVERTIBLE REDEEMABLE PREFERRED STOCK (THE
         "PREFERRED STOCK") AND WARRANTS ENTITLING THE HOLDER THEREOF TO
         PURCHASE THE CORPORATION'S COMMON STOCK (THE "WARRANTS"). UNTIL THE
         FIRST ANNIVERSARY OF THE DATE OF INITIAL ISSUANCE OF THE PREFERRED
         STOCK UNDER THE PURCHASE AGREEMENT, EACH SHARE OF PREFERRED STOCK
         EVIDENCED BY THIS CERTIFICATE MAY NOT BE TRANSFERRED SEPARATELY FROM,
         BUT MAY BE TRANSFERRED ONLY TOGETHER WITH, 3.40 WARRANTS.

         (d)  Each Warrant shall bear legends substantially in the form of the
legends set forth in the form of Warrant appended to the Warrant Agreement
attached hereto as Exhibit B.

         (c)  The Company, at its discretion, may cause a stop transfer order to
be placed with its transfer agent with respect to the certificates for the
Securities.

         7.6. Successors and Assigns. Except as otherwise expressly provided
herein, (i) all covenants and agreements contained in this Agreement by or on
behalf of any of the parties hereto shall bind and inure to the benefit of the
respective successors and assigns of the parties hereto, whether so expressed or
not, and (ii) no party may assign or delegate all or any portion of its rights,
obligations or liabilities under this Agreement without the prior written

                                       20

<PAGE>

consent of each other party to this Agreement. From and after the date of this
Agreement, the Purchaser shall have the right, without the prior written consent
of the Company, to assign all of its rights, obligations and liabilities under
this Agreement to a single direct or indirect wholly owned subsidiary of the
Purchaser, provided that the consummation of the purchase of the Securities
hereunder by such subsidiary shall not subject the Company to more extensive or
burdensome regulation under the PUHCA than the consummation of the purchase of
the Securities by the Purchaser, and provided further no such assignment shall
relieve the Purchaser of its obligations or liabilities under this Agreement. As
a condition of any such assignment, such assignee subsidiary shall be deemed to
have made all of the representations and warranties of the Purchaser set forth
in this Agreement, other than the representation and warranty set forth in
Section 3.8(b). From and after the effective date of any such assignment, all
references in this Agreement to the Purchaser shall be to such assignee
subsidiary unless the context requires otherwise.

              7.7. Inspections; No Other Representations. The Purchaser is an
informed and sophisticated purchaser, and has undertaken such investigation and
has been provided with and has evaluated such documents and information as it
deems necessary to enable it to make an informed decision with respect to the
execution, delivery and performance of this Agreement. The Purchaser agrees to
accept the Preferred Shares, Warrants and Commitment Shares based upon its own
inspection, examination and determination with respect thereto as to all
matters, and without reliance upon any express or implied representations or
warranties of any nature made by or on behalf or imputed to the Company, except
as expressly set forth in this Agreement. Without limiting the generality of the
foregoing, the Purchaser acknowledges that the Company makes no representation
or warranty with respect to any projections, estimates or budgets delivered to
or made available to the Purchaser of future revenues, future results of
operations (or any component thereof), future cash flows or future financial
condition (or any component thereof) of the Company and its Subsidiaries or the
future business and operations of the Company and the Subsidiaries except as
expressly set forth in this Agreement.

              7.8. Entire Agreement. This Agreement (including the Schedules
hereto) and the other Transaction Documents constitute the full and entire
understanding and agreement between the parties with regard to the subjects
hereof, and no party shall be liable or bound to any other in any manner by any
representations, warranties, covenants and agreements except as specifically set
forth herein and therein. Without limiting the generality of the foregoing, the
parties hereto agree and acknowledge that this Agreement shall supersede and
replace in its entirety the SCANA Subscription Agreement, which shall, on and
after the date hereof, be terminated in full and no longer be in force or
effect.

              7.9. Notices. All notices, demands, requests, consents or other
communications to be given or delivered under or by reason of the provisions of
this Agreement shall be in writing and shall be deemed to have been given (i)
when delivered personally to the recipient, (ii) when telecopied to the
recipient (with hard copy sent to the recipient by reputable overnight courier
service (charges prepaid) that same day) if telecopied before 5:00 p.m. New York
City time on a Business Day, and otherwise on the next Business Day, (iii) one
Business Day after being sent to the recipient by reputable overnight courier
service (charges prepaid), or (iv) on the first Business Day that is at least
five days after the date of deposit in the United

                                       21

<PAGE>

States mails for delivery by certified mail. Such notices, demands, requests,
consents and other communications shall be sent to the following Persons at the
following addresses:

                         (i)       if to the Company, to:

                                   ITC DeltaCom, Inc.
                                   1791 O.G. Skinner Drive
                                   West Point, Georgia 31833
                                   Telecopy No.: (256) 382-3936
                                   Attention:    J. Thomas Mullis, Esq.
                                                 Senior Vice President, General
                                                 Counsel and Secretary

                         (ii)      if to the Purchaser, to:

                                   SCANA Corporation
                                   1426 Main Street
                                   Columbia, South Carolina 29201
                                   Telecopy No.: (803) 217-9336
                                   Attention:    General Counsel

                                   with a copy (which shall not constitute
                                   notice) to Purchaser's Counsel:

                                   McNair Law Firm, P.A.
                                   1301 Gervais St., 17th Floor
                                   Columbia, SC 29201
                                   Telecopy No.: (803) 376-2277
                                   Attention:    John Currie

or to such other address or to the attention of such other person as the
recipient party has specified by prior written notice to the sending party.

         7.10. Business Days. If any time period for giving notice or taking
action hereunder expires on a day which is not a Business Day, the time period
shall automatically be extended to the Business Day immediately following such
day.

         7.11. Amendments; Waivers. The provisions of this Agreement, including
the provisions of this sentence, may not be amended, modified or supplemented,
and waivers or consents to departures from the provisions hereof may not be
given without the written consent thereto of the Company and the Purchaser.

         7.12. Counterparts. This Agreement may be executed simultaneously in
two or more counterparts, any one of which need not contain the signatures of
more than one party, but all such counterparts taken together shall constitute
one and the same Agreement.

         7.13. Descriptive Headings; Interpretation; No Strict Construction The
descriptive headings of this Agreement are inserted for convenience only and do
not constitute a

                                       22

<PAGE>

substantive part of this Agreement. Whenever required by the context, any
pronoun used in this Agreement shall include the corresponding masculine,
feminine or neuter forms, and the singular forms of nouns, pronouns, and verbs
shall include the plural and vice versa. Reference to any agreement, document,
or instrument means such agreement, document, or instrument as amended or
otherwise modified from time to time in accordance with the terms thereof and,
if applicable, hereof. The use of the words "include" or "including" in this
Agreement shall be by way of example rather than by limitation. The use of the
words "or," "either" or "any" shall not be exclusive. The parties to this
Agreement have participated jointly in the negotiation and drafting of this
Agreement. If an ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the parties hereto, and no
presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any of the provisions of this Agreement. The parties
agree that prior drafts of this Agreement shall be deemed not to provide any
evidence as to the meaning of any provision hereof or the intention of the
parties hereto with respect to this Agreement.

         7.14. References. When a reference is made in this Agreement or any
other Transaction Document to a Section, Exhibit, Schedule or Appendix, such
reference shall be to a Section of or an Exhibit or a Schedule or Appendix to
this Agreement or such other Transaction Document, unless otherwise indicated.

         7.15. Governing Law. This Agreement shall be governed in all respects,
including validity, interpretation and effect, by the laws of the State of
Delaware applicable to contracts executed and to be performed wholly within such
state.

         7.16. Exclusive Jurisdiction; Venue. Any process against the Company or
the Purchaser in, or in connection with, any suit, action or proceeding arising
out of or relating to this Agreement or the transactions contemplated hereby,
may be served personally or by certified mail pursuant to the notice provision
set forth in Section 7.9 with the same effect as though served on it personally.
Each of the Company and the Purchaser hereby irrevocably submits in any suit,
action or proceeding by the parties hereto arising out of or relating to this
Agreement or any of the transactions contemplated hereby to the exclusive
jurisdiction and venue of the federal and state courts of the State of Delaware
and irrevocably waives any and all objections to exclusive jurisdiction and
review of venue that any such party may have under the laws of the State of
Delaware or the United States. Without limiting the other remedies, this
Agreement shall be enforceable by specific performance. Each of the foregoing
parties hereby irrevocably designates RL&F Service Corp. (the "Process Agent"),
with offices at the date hereof at One Rodney Square, 920 King Street,
Wilmington, Delaware, 19899, as its designee, appointee and agent to receive,
for and on its behalf, service of process in the State of Delaware in any legal
action or proceedings with respect to this Agreement and the transactions
contemplated hereby, and such service shall be deemed complete upon delivery
thereof to the Process Agent, provided that in the case of any such service upon
the Process Agent, the party effecting such service shall also deliver a copy
thereof to the other party in accordance with the notice provision set forth in
Section 7.9. Each party shall take all such action as may be necessary to
continue such appointment in full force and effect or to appoint another agent,
who will thereafter be referred to herein as the "Process Agent," so that each
such party shall at all times have an agent for service for the foregoing
purposes in the State of Delaware.

                                       23

<PAGE>

         7.17. Waiver of Jury Trial. The Company and the Purchaser hereby waive
any right they may have to a trial by jury in respect of any action, proceeding
or litigation directly or indirectly arising out of, under or in connection with
this Agreement or the Transaction Documents.

         7.18. Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid or
unenforceable in any respect, such invalidity or unenforceability shall not
render invalid or unenforceable any other provision of this Agreement.

         7.19. Delivery by Facsimile. This Agreement, the agreements referred
to herein, and each other agreement or instrument entered into in connection
herewith or therewith or contemplated hereby or thereby, and any amendments
hereto or thereto, to the extent signed and delivered by means of a facsimile
machine, shall be treated in all manner and respects as an original agreement or
instrument and shall be considered to have the same binding legal effect as if
it were the original signed version thereof delivered in person. At the request
of any party hereto or to any such agreement or instrument, each other party
hereto or thereto shall reexecute original forms thereof and deliver them to all
other parties. No party hereto or to any such agreement or instrument shall
raise the use of a facsimile machine to deliver a signature or the fact that any
signature or agreement or instrument was transmitted or communicated through the
use of a facsimile machine as a defense to the formation or enforceability of a
contract, and each such party forever waives any such defense.

                                       24

<PAGE>

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

                                      Company:

                                      ITC DeltaCom, Inc.

                                      By: /s/
                                          --------------------------------
                                          Name:
                                          Title:

                                      Purchaser:

                                      SCANA Corporation

                                      By: /s/
                                          --------------------------------
                                          Name:<PAGE>

                                                                     Exhibit 4.9

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (THE
"DEPOSITORY") TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.,
OR SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE
DEPOSITORY TRUST COMPANY AND ANY PAYMENT IS MADE TO CEDE & CO., ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

REGISTERED                                                            REGISTERED

                            THE DOW CHEMICAL COMPANY

                        5.75% NOTES DUE NOVEMBER 15, 2009

CUSIP NO. 260543 BS 1
ISIN NO. US260543BS19
No. R-1                                                           US$500,000,000

     THE DOW CHEMICAL COMPANY, a Delaware corporation (herein called the
"Company," which term includes any successor corporation under the Indenture
hereinafter referred to), for value received, hereby promises to pay to CEDE &
CO., or registered assigns, the principal sum of FIVE HUNDRED MILLION DOLLARS
(US$500,000,000) on November 15, 2009, in such coin or currency of the United
States of America as at the time of payment shall be legal tender for the
payment of public and private debts, and to pay interest, together with such
additional amounts (if any) as are described in Section 2 on the reverse of this
Note ("Additional Amounts"), thereon semi-annually on each May 15 and November
15, commencing May 15, 2003 and at maturity on said principal sum, in such coin
or currency of the United States of America as at the time of payment shall be
legal tender for the payment of public and private debts, at the rate per annum
specified in the title of this Security, from the May 15 or November 15, as the
case may be, next preceding the date of this Security to which interest has been
paid, unless the date hereof is a date to which interest has been paid, in which
case from the date of this Security, or unless no interest has been paid on this
Security, in which case from November 12, 2002, until payment of said principal
sum has been made or duly provided for. Payments of such principal and interest
(and Additional Amounts, if any) shall be made at the office or agency of the
Company in Chicago, Illinois, which, subject to the right of the Company to vary
or terminate the appointment of such agency, shall initially be at the principal
office of Bank One Trust Company, N.A., One Bank One Plaza, Chicago, Illinois
60670-0126; provided, that payment of interest (and Additional Amounts, if any)
may be made at the option of the Company by check mailed to the address of the
person entitled thereto as such address shall appear on the Security register;
provided, further that so long as CEDE & CO. or another nominee of the
Depository is the registered owner of this Security payments of principal and
interest (and Additional

<PAGE>

Amounts, if any) will be made in immediately available funds through the
Depository's Same-Day Funds Settlement System. Notwithstanding the foregoing, if
the date hereof is after May 1 or November 1, as the case may be, and before the
following May 15 or November 15, this Security shall bear interest from such May
15 or November 15; provided, that if the Company shall default in the payment of
interest due on such May 15 or November 15, then this Security shall bear
interest from the next preceding May 15 or November 15, to which interest has
been paid or, if no interest has been paid on this Security, from November 12,
2002. The interest (and Additional Amounts, if any) payable on any May 15 or
November 15 will, subject to certain exceptions provided in the Indenture
referred to on the reverse hereof, be paid to the person in whose name this
Security is registered at the close of business on the May 1 or November 1, as
the case may be, next preceding such May 15 or November 15, and the interest
(and Additional Amounts, if any) payable at maturity will be payable to the
person to whom the principal hereof shall be payable.

     Reference is made to the further provisions of this Security set forth on
the reverse hereof. Such further provisions shall for all purposes have the same
effect as though fully set forth at this place.

     This Security shall not be valid or become obligatory for any purpose until
the certificate of authentication hereon shall have been signed by the Trustee
under the Indenture referred to on the reverse hereof.

                        [Signatures appear on next page]

                                       2

<PAGE>

     IN WITNESS WHEREOF, THE DOW CHEMICAL COMPANY has caused this instrument to
be signed by facsimile by its duly authorized representative.

Dated: November 12, 2002

[SEAL]

Attest:                                THE DOW CHEMICAL COMPANY

By: ____________________________       By: ___________________________________
    Name: Thomas E. Moran                  Name:  Fernando Ruiz
    Title:  Assistant Secretary            Title: Vice President and Treasurer

                                       3

<PAGE>

                     TRUSTEE'S CERTIFICATE OF AUTHENTICATION

     This is one of the Securities of the series designated herein referred to
in the within-mentioned Indenture.

                                     Bank One Trust Company, N.A.,
                                      as Trustee

                                     By: ___________________________________
                                         Authorized Signatory

                                       4

<PAGE>

                            THE DOW CHEMICAL COMPANY

                        5.75% NOTES DUE NOVEMBER 15, 2009

     Section 1.  General. This Note is one of a duly authorized issue of
securities of the Company (herein called the "Securities"), issued and to be
issued in one or more series under an Indenture, dated as of April 1, 1992, as
supplemented by a supplemental indenture dated as of January 1, 1994, a second
supplemental indenture dated as of October 1, 1999, and a third supplemental
indenture dated as of May 15, 2001 (the "Indenture"), between the Company and
Bank One Trust Company, N.A., as successor in interest to The First National
Bank of Chicago, as Trustee (herein called the "Trustee", which term includes
any successor trustee under the Indenture), to which Indenture and all
indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities thereunder of
the Company, the Trustee and the Holders of the Securities and of the terms upon
which the Securities are, and are to be, authenticated and delivered. This
Security is one of the Securities of the series designated on the face hereof.

     Section 2.  Payment of Additional Amounts. The Company shall pay to any
Holder who is a Non-United States person (as defined below) such Additional
Amounts as may be necessary in order that every net payment in respect of the
principal, premium, if any, or interest, if any, on this Security, after
deduction or withholding by the Company or any Paying Agent for or on account of
any present or future tax, assessment or governmental charge imposed upon or as
a result of such payment by the United States or any political subdivision or
taxing authority thereof or therein, shall not be less than the amount provided
for herein to be then due and payable before any such deduction or withholding
for or on account of any such tax, assessment or governmental charge; provided,
however, that the foregoing obligation to pay such Additional Amounts shall not
apply to:

          (a)  any tax, assessment or other governmental charge which would not
     have been so imposed but for:

               (i)  the existence of any present or former connection between
          such Holder (or a fiduciary, settlor, beneficiary, member or
          shareholder of, or holder of a power over, such Holder, if such Holder
          is an estate, trust, partnership or corporation) and the United
          States, including, without limitation, such Holder (or such fiduciary,
          settlor, beneficiary, member, shareholder of, or holder of a power)
          being or having been a citizen or resident or treated as a resident
          thereof or being or having been engaged in a trade or business therein
          or being or having been present therein or having or having had a
          permanent establishment therein; or

               (ii) such Holder's present or former status as a personal holding
          company or foreign personal holding company or controlled foreign
          corporation for United States federal income tax purposes or
          corporation which accumulates

                                       5

<PAGE>

                  earnings to avoid United States federal income tax;

                  (b) any tax, assessment or other governmental charge which
         would not have been so imposed but for the presentation by the Holder
         for payment on a date more than 10 days after the date on which such
         payment became due and payable or the date on which payment thereof is
         duly provided for, whichever occurs later;

                  (c) any estate, inheritance, gift, sales, transfer, personal
         property or excise tax or any similar tax, assessment or governmental
         charge;

                  (d) any tax, assessment or other governmental charge which is
         payable otherwise than by withholding from payments in respect of
         principal of, premium, if any, or interest, if any, on this Security;

                  (e) any tax, assessment or other governmental charge imposed
         on interest received by a Holder or beneficial owner of this Security
         who actually or constructively owns 10% or more of the total combined
         voting power of all classes of stock of the Company entitled to vote
         within the meaning of Section 871(h)(3) of the United States Internal
         Revenue Code of 1986, as amended;

                  (f) any tax, assessment or other governmental charge imposed
         as a result of the failure to comply with:

                      (i) certification, information, documentation, reporting
                  or other similar requirements concerning the nationality,
                  residence, identity or connection with the United States of
                  the Holder or beneficial owner of this Security, if such
                  compliance is required by statute, or by regulation of the
                  United States Treasury Department, as a precondition to relief
                  or exemption from such tax, assessment or other governmental
                  charge (including backup withholding); or

                      (ii) any other certification, information, documentation,
                  reporting or other similar requirements under United States
                  income tax laws or regulations that would establish
                  entitlement to otherwise applicable relief or exemption from
                  such tax, assessment or other governmental charge;

                  (g) any tax, assessment or other governmental charge required
         to be withheld by any Paying Agent from any payment of the principal
         of, premium, if any, or interest, if any, on this Security, if such
         payment can be made without such withholding by at least one other
         Paying Agent;

                  (h) any tax, assessment or other governmental charge that is
         required to be made pursuant to any European Union directive on the
         taxation of savings income or any law implementing or complying with,
         or introduced to conform to, any such directive; or

                                       6

<PAGE>

                  (i) any combination of items (a), (b), (c), (d), (e), (f), (g)
         or (h);

nor will such Additional Amounts be paid to any Holder who is a fiduciary or
partnership or other than the sole beneficial owner of this Security to the
extent a settlor or beneficiary with respect to such fiduciary or a member of
such partnership or a beneficial owner of this Security would not have been
entitled to payment of such Additional Amounts had such beneficiary, settlor,
member or beneficial owner been the holder of this Security. This Security is
subject in all cases to any tax, fiscal or other law or regulation or
administrative or judicial interpretation applicable thereto. Except as
specifically provided under this Section 2, the Company shall not be required to
make any payment with respect to any tax, assessment or governmental charge
imposed by any government or a political subdivision or taxing authority thereof
or therein.

         As used in this Section 2 and in Section 3 hereof:

                  (a) the term "United States" means the United States of
         America (including the States and the District of Columbia) and its
         territories, its possessions and other areas subject to its
         jurisdiction;

                  (b) the term "United States person" means a beneficial owner
         of the Securities that is for United States federal income tax
         purposes:

                      (i) a citizen or resident of the United States;

                      (ii) a corporation or other entity created or organized in
                  or under the laws of the United States or of any political
                  subdivision thereof;

                      (iii) an estate the income of which is subject to United
                  States federal income taxation regardless of its source; or

                      (iv) a trust if (1) a court within the United States is
                  able to exercise primary supervision over the administration
                  of the trust, and (2) one or more United States persons have
                  the authority to control all substantial decisions of the
                  trust; and

                  (c) the term "Non-United States person" means a beneficial
         owner of the Securities that is, for United States federal income tax
         purposes:

                      (i) a nonresident alien individual;

                      (ii) a foreign corporation; or

                      (iii) a nonresident alien fiduciary of a foreign estate or
                  trust.

         Section 3. Redemption; Sinking Fund. (a) Except as provided in
paragraphs (b) and (c)

                                       7

<PAGE>

below, the Securities are not redeemable prior to maturity.

                  (b)      If, as a result of:

                           (i)   any change in or amendment to the laws
                  (including any regulations or rulings promulgated thereunder)
                  of the United States or any political subdivision thereof or
                  therein affecting taxation, which becomes effective after
                  November 6, 2002 or which proposal is made after such date;

                           (ii)  any change in the official application or
                  interpretation of such laws, including any official proposal
                  for such a change, amendment or change in the application or
                  interpretation of such laws, which change, amendment,
                  application or interpretation is announced or becomes
                  effective after November 6, 2002 or which proposal is made
                  after such date; or

                           (iii) any action taken by any taxing authority of the
                  United States which action is taken or becomes generally known
                  after November 6, 2002, or any commencement of a proceeding in
                  a court of competent jurisdiction in the United States after
                  such date, whether or not such action was taken or such
                  proceeding was brought with respect to the Company;

         there is, in such case, in the written opinion of independent legal
         counsel of recognized standing to the Company, a material increase in
         the probability that the Company has or may become obligated to pay
         Additional Amounts in accordance with Section 2 hereof, and the Company
         in its business judgment, determines that such obligation cannot be
         avoided by the use of reasonable measures available to it, not
         including assignment of this Security, this Security may be redeemed,
         as a whole but not in part, at the Company's option at any time
         thereafter, upon notice to the Trustee and the Holders in accordance
         with the provisions of the Indenture at a redemption price equal to
         100% of the principal amount of this Security to be redeemed together
         with accrued interest thereon to the date fixed for redemption.

                  (c)      All or a portion of the Securities will be redeemable
         at any time or from time to time at the option of the Company at a
         redemption price equal to the greater of

                           (i)  one hundred percent (100%) of the principal
                  amount of the Securities to be redeemed on the redemption
                  date; and

                           (ii) the sum of the present values of the remaining
                  scheduled payments of principal and interest on the Securities
                  being redeemed on such redemption date (not including any
                  portion of any payments of interest accrued to the redemption
                  date), discounted to the redemption date on a semiannual basis
                  at the Treasury Rate (as defined below), plus 30 basis points,
                  as determined by the Reference Treasury Dealer (as defined
                  below),

                                       8

<PAGE>

         plus, in either case, accrued interest thereon to the redemption date.
         Notwithstanding the foregoing, installments of interest on Securities
         that are due and payable on interest payment dates falling on or prior
         to a redemption date will be payable on the interest payment date to
         the registered holders as of the close of business on the relevant
         record date according to the Securities and the Indenture. The
         redemption price will be calculated on the basis of a 360-day year
         consisting of twelve 30-day months.

         Notice of any redemption will be mailed at least 30 days but not more
         than 60 days before the redemption date to each Holder of the
         Securities to be redeemed. Once notice of redemption is mailed, the
         Securities called for redemption will become due and payable on the
         redemption date and at the applicable redemption price, plus accrued
         and unpaid interest to the redemption date.

         "Treasury Rate" means, with respect to any redemption date, the rate
         per annum equal to the semiannual equivalent yield to maturity of the
         Comparable Treasury Issue, assuming a price for the Comparable Treasury
         Issue (expressed as a percentage of its principal amount) equal to the
         Comparable Treasury Price for such redemption date.

         "Comparable Treasury Issue" means the United States Treasury security
         selected by the Reference Treasury Dealer as having a maturity
         comparable to the remaining term of the Securities to be redeemed that
         would be utilized, at the time of selection and in accordance with
         customary financial practice, in pricing new issues of corporate debt
         securities of comparable maturity to the remaining term of such
         Securities.

         "Comparable Treasury Price" means, with respect to any redemption date,
         (i) the average of the Reference Treasury Dealer Quotations for such
         redemption date, after excluding the highest and lowest such Reference
         Treasury Dealer Quotations, (ii) if the Trustee obtains fewer than
         three such Reference Treasury Dealer Quotations, the average of all
         such quotations, or (iii) if only one Reference Treasury Dealer
         Quotation is received, such Quotation.

         "Reference Treasury Dealer" means (i) Salomon Smith Barney Inc. (or its
         respective affiliates which are Primary Treasury Dealers) and its
         successors; provided, however, that if any of the foregoing shall cease
         to be a primary U.S. Government securities dealer in New York City (a
         "Primary Treasury Dealer"), the Company shall substitute therefor
         another Primary Treasury Dealer; and (ii) any other Primary Treasury
         Dealer(s) selected by the Trustee after consultation with the Company.

         "Reference Treasury Dealer Quotation" means, with respect to each
         Reference Treasury Dealer and any redemption date, the average, as
         determined by the Trustee, of the bid and asked prices for the
         Comparable Treasury Issue (expressed in each case as a percentage of
         its principal amount) quoted in writing to the Trustee by such
         Reference Treasury Dealer at 5:00 p.m. (New York City time) on the
         third business day preceding such redemption

                                       9

<PAGE>

         date.

         Unless the Company defaults in payment of the redemption price, on and
         after the redemption date interest will cease to accrue on the
         Securities or any portions thereof called for redemption.

         (d)      The Securities will not be subject to any sinking fund.

         Section 4. Events of Default. If an Event of Default with respect to
Securities of this series shall occur and be continuing, the principal of the
Securities of this series may be declared due and payable in the manner and with
the effect provided in the Indenture.

         Section 5. Modifications and Waivers; Obligation of the Company
Absolute. The Indenture permits, with certain exceptions as therein provided,
the amendment thereof and the modification of the rights and obligations of the
Company and the rights of the Holders of the Securities of each series to be
affected under the Indenture at any time by the Company and the Trustee with the
consent of the Holders of at least a majority in principal amount of the
Securities at the time Outstanding of each series to be affected. The Indenture
also contains provisions permitting the Holders of specified percentages in
principal amount of the Securities of each series at the time Outstanding, on
behalf of the Holders of all Securities of such series, to waive compliance by
the Company with certain provisions of the Indenture and certain past defaults
under the Indenture and their consequences. Any such consent or waiver by the
Holder of this Security shall be conclusive and binding upon such Holder and
upon all future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange herefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

         No reference herein to the Indenture and no provision of this Security
or of the Indenture shall alter or impair the obligation of the Company, which
is absolute and unconditional, to pay the principal of and interest (and
Additional Amounts, if any) on this Security at the times, places and rate, and
in the coin or currency, herein prescribed.

         Section 6. Authorized Denominations. The Securities are issuable in
registered form, without coupons, in denominations of $1,000 and any integral
multiple of $1,000 in excess thereof. As provided in the Indenture, and subject
to certain limitations therein set forth and to the limitations described below,
if applicable, Securities of this series are exchangeable for a like aggregate
principal amount of Securities of this series and of like tenor of a different
authorized denomination, as requested by the Holder surrendering the same.

         Section 7. Registration of Transfer. As provided in the Indenture and
subject to certain limitations therein set forth, the transfer of this Security
is registrable in the Security register upon surrender of this Security for
registration of transfer at the office or agency of the Company maintained for
that purpose in the City of Chicago, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the
securities registrar (which shall initially be the Trustee, Bank One Trust
Company, N.A., One Bank One Plaza, Chicago, Illinois

                                       10

<PAGE>

60670-0126 (Attention: Corporate Trust Department) or at such other address as
it may designate as its principal corporate trust office in the City of
Chicago), duly executed by the Holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Securities of this series and of like
tenor, of authorized denominations and for the same aggregate principal amount,
will be issued to the designated transferee or transferees.

     This Security is exchangeable only if (x) the Depository notifies the
Company that it is unwilling or unable to continue as Depository for this
Security or if at any time the Depository ceases to be a clearing agency
registered under the Securities Exchange Act of 1934, as amended, (y) the
Company in its sole discretion determines that this Security shall be
exchangeable for certificated Securities in registered form or (z) an Event of
Default, or an event which with the passage of time or the giving of notice
would become an Event of Default, with respect to the Securities represented
hereby has occurred and is continuing, provided that the definitive Securities
so issued in exchange for this permanent Security shall be in denominations of
$1,000 and any integral multiple of $1,000 in excess thereof and be of like
aggregate principal amount and tenor as the portion of this permanent Security
to be exchanged, and provided further that, unless the Company agrees otherwise,
Securities of this series in certificated registered form will be issued in
exchange for this permanent Security, or any portion hereof, only if such
Securities in certificated registered form were requested by written notice to
the Trustee or the Securities Registrar by or on behalf of a person who is
beneficial owner of an interest hereof given through the Holder hereof. Except
as provided above, owners of beneficial interests in this permanent Security
will not be entitled to receive physical delivery of Securities in certificated
registered form and will not be considered the Holders thereof for any purpose
under the Indenture.

     No service charge shall be made for any such registration of transfer or
exchange, but the Company may require payment of a sum sufficient to cover any
tax or other governmental charge payable in connection therewith.

     Section 8.  Owners. Prior to due presentment of this Security for
registration of transfer, the Company, the Trustee and any agent of the Company
or the Trustee may treat the Person in whose name this Security is registered as
the owner hereof for all purposes, whether or not this Security is overdue, and
neither the Company, the Trustee nor any such agent shall be affected by notice
to the contrary.

     Section 9.  No Recourse Against Certain Persons. No recourse for the
payment of the principal or interest (and Additional Amounts, if any) on this
Security, or for any claim based hereon or otherwise in respect hereof, and no
recourse under or upon any obligation, covenant or agreement of the Company in
the Indenture or any Supplemental Indenture thereto or in any Security, or
because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, officer or director, as such, past,
present or future, of the Company or of any successor corporation of either of
them, either directly or through the Company or any successor corporation of
either of them, whether by virtue of any constitution, statute or rule or law or
by the enforcement of any assessment or penalty or otherwise, all such liability
being by the acceptance

                                       11

<PAGE>
hereof and as a condition of and as part of the consideration for the
issue hereof, expressly waived and released.

     Section 10. Defeasance. The Indenture with respect to any series will be
discharged and cancelled except for certain Sections thereof, subject to the
terms of the Indenture, upon payment of all of the Securities of such series or
upon the irrevocable deposit with the Trustee of cash or U.S. Government
Obligations (or a combination thereof) sufficient for such payment in accordance
with Article Ten of the Indenture.

     Section 11. Governing Law; Jurisdiction. The Indenture and the Securities
shall be governed by and construed in accordance with the laws of the State of
New York.

     Section 12. Notices. Notices to Holders shall be published in authorized
daily newspapers in The City of New York, in London, and, so long as the
Securities are listed on the Luxembourg Stock Exchange, in Luxembourg. Notice
may be given by publication in The City of New York in The Wall Street Journal,
in London in the Financial Times, and in Luxembourg in the Luxemburger Wort. Any
notice given pursuant to these provisions shall be deemed to have been given on
the date of publication or, if published more than once, on the date first
published.

     Section 13. Defined Terms. All terms used in this Security which are
defined in the Indenture shall have the meanings assigned to them in the
Indenture.

                                       12

<PAGE>

                                  ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of
this instrument, shall be construed as though they were written out in full
according to applicable laws or regulations:

     TEN COM - as tenants in common

     TEN ENT - as tenants by the entireties

     JT TEN - as joint tenants with right of survivorship and not as tenants in
              common

     UNIF GIFT MIN ACT - ___________________________
                                   (Minor)

               Custodian   ___________________________
                                    (Cust)

     Under Uniform Gifts to Minors Act   ____________________________
                                                    (State)

Additional abbreviations may also be used though not in the above list.

                                       13

<PAGE>

FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s)
unto

PLEASE INSERT SOCIAL SECURITY OR
OTHER IDENTIFYING NUMBER OF ASSIGNEE

__________________________________

________________________________________________________________________________
PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS INCLUDING POSTAL ZIP CODE OF ASSIGNEE

_______________________________________

_______________________________________

_______________________________________

the within Security and all rights thereunder, hereby irrevocably constituting
and appointing ____________________________________ attorney to transfer said
Security on the books of the Company, with full power of substitution in the
premises.

Dated:   __________________________

Signature: ____________________________

NOTICE:   THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS
          WRITTEN UPON THE FACE OF THE WITHIN INSTRUMENT IN EVERY PARTICULAR,
          WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATEVER.

                                       14

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