Document:

Exhibit 10.3

 Exhibit 10.3 
  
 $20,000,000 
  
 CREDIT AGREEMENT 
  
 Dated as of March 29, 2005 
  
 Among 
  
 ITC^DELTACOM, INC.

  
 as Parent 
  
 INTERSTATE FIBERNET, INC. 
  
 as Borrower 
  
 THE SUBSIDIARIES NAMED HEREIN 
  
 THE LENDERS NAMED HEREIN 
  
 as Lenders 
  
 WELSH, CARSON, ANDERSON & STOWE VIII, L.P. 
  
 as Administrative Agent and 
  
 Collateral Agent 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

	ARTICLE I DEFINITIONS AND ACCOUNTING TERMS	  	 
			
	 Section 1.01.
	  	 Certain Defined Terms
	  	2
	 Section 1.02.
	  	 Computation of Time Periods; Other Definitional Provisions
	  	24
	 Section 1.03.
	  	 Accounting Terms
	  	24
		
	ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES	  	 
			
	 Section 2.01.
	  	 Term Commitments
	  	25
	 Section 2.02.
	  	 Intentionally omitted
	  	25
	 Section 2.03.
	  	 Repayment of Advances
	  	25
	 Section 2.04.
	  	 Intentionally omitted
	  	25
	 Section 2.05.
	  	 Prepayments
	  	25
	 Section 2.06.
	  	 Interest
	  	27
	 Section 2.07.
	  	 Increased Costs, Etc.
	  	27
	 Section 2.08.
	  	 Payments and Computations
	  	27
	 Section 2.09.
	  	 Taxes
	  	29
	 Section 2.10.
	  	 Sharing of Payments, Etc.
	  	31
	 Section 2.11.
	  	 Intentionally omitted
	  	32
	 Section 2.12.
	  	 Defaulting Lenders
	  	32
	 Section 2.13.
	  	 Evidence of Debt; Register
	  	33
		
	ARTICLE III CONDITIONS OF LENDING	  	 
			
	 Section 3.01.
	  	 Conditions Precedent to the Effective Date
	  	35
		
	ARTICLE IV REPRESENTATIONS AND WARRANTIES	  	 
			
	 Section 4.01.
	  	 Representations and Warranties of the Borrower
	  	39
		
	ARTICLE V COVENANTS	  	 
			
	 Section 5.01.
	  	 Affirmative Covenants
	  	47
	 Section 5.02.
	  	 Negative Covenants
	  	55
	 Section 5.03.
	  	 Reporting Requirements
	  	65
		
	ARTICLE VI EVENTS OF DEFAULT	  	 
			
	 Section 6.01.
	  	 Events of Default
	  	69
		
	ARTICLE VII GUARANTY	  	 
			
	 Section 7.01.
	  	 Parent Guaranty; Limitation of Liability
	  	71
	 Section 7.02.
	  	 Guaranty Absolute
	  	72
	 Section 7.03.
	  	 Waivers and Acknowledgments
	  	73
	 Section 7.04.
	  	 Subrogation
	  	74
	 Section 7.05.
	  	 Intentionally omitted
	  	75
	 Section 7.06.
	  	 Subordination
	  	75
	 Section 7.07.
	  	 Continuing Guaranty; Assignments
	  	76

  

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	 Section 7.08.
	  	 Release of the Parent
	  	76
		
	ARTICLE VIII THE AGENT	  	 
			
	 Section 8.01.
	  	 Authorization and Action
	  	76
	 Section 8.02.
	  	 Agents’ Reliance, Etc.
	  	76
	 Section 8.03.
	  	 WCAS and Affiliates
	  	77
	 Section 8.04.
	  	 Lender Credit Decision
	  	77
	 Section 8.05.
	  	 Indemnification
	  	77
	 Section 8.06.
	  	 Successor Agents
	  	78
	 Section 8.07.
	  	 Appointment of Subagents
	  	79
		
	ARTICLE IX MISCELLANEOUS	  	 
			
	 Section 9.01.
	  	 Amendments, Etc.
	  	79
	 Section 9.02.
	  	 Notices, Etc.
	  	80
	 Section 9.03.
	  	 No Waiver; Remedies
	  	80
	 Section 9.04.
	  	 Costs and Expenses
	  	80
	 Section 9.05.
	  	 Right of Set-off
	  	81
	 Section 9.06.
	  	 Binding Effect
	  	82
	 Section 9.07.
	  	 Assignments and Participations
	  	82
	 Section 9.08.
	  	 Execution in Counterparts
	  	84
	 Section 9.09.
	  	 Confidentiality
	  	84
	 Section 9.10.
	  	 Release of Collateral
	  	85
	 Section 9.11.
	  	 Jurisdiction, Etc.
	  	85
	 Section 9.12.
	  	 Governing Law
	  	85
	 Section 9.13.
	  	 Waiver of Jury Trial
	  	85

  

 ii 

 SCHEDULES 
  

					
	 Schedule I
	  	-	  	 Lending Offices

	 Schedule II
	  	-	  	 Competitors

	 Schedule III
	  	-	  	 Subsidiaries to be Dissolved

	 Schedule 4.01(a)(ii)
	  	-	  	 Pending Good Standings

	 Schedule 4.01(a)(iii)
	  	-	  	 Pending Licenses, Permits and Other Approvals

	 Schedule 4.01(b)
	  	-	  	 Subsidiaries

	 Schedule 4.01(d)
	  	-	  	 Authorizations, Approvals, Actions, Notices and Filings

	 Schedule 4.01(f)
	  	-	  	 Disclosed Litigation

	 Schedule 4.01(n)
	  	-	  	 Plans, Multiemployer Plans and Welfare Plans

	 Schedule 4.01(p)
	  	-	  	 Open Years; Unpaid Tax Liabilities; Adjusted Tax Bases

	 Schedule 4.01(r)
	  	-	  	 Surviving Debt

	 Schedule 4.01(s)
	  	-	  	 Liens

	 Schedule 4.01(t)
	  	-	  	 Owned Real Property

	 Schedule 4.01(u)
	  	-	  	 Leased Real Property

	 Schedule 4.01(v)
	  	-	  	 Investments

	 Schedule 4.01(w)
	  	-	  	 Intellectual Property

	 Schedule 4.01(x)
	  	-	  	 Material Contracts

  
 EXHIBITS 
  

					
	 Exhibit A
	  	-	  	 Form of Term Note

	 Exhibit B
	  	-	  	 Form of Assignment and Acceptance

	 Exhibit C
	  	-	  	 Form of Security Agreement

	 Exhibit D
	  	-	  	 Form of Third Lien Intercreditor and Subordination Agreement

	 Exhibit E
	  	-	  	 Form of Capital Lease Assignment

	 Exhibit F
	  	-	  	 Form of Opinion of Counsel to the Loan Parties

  

 iii 

 CREDIT AGREEMENT 
  
 CREDIT AGREEMENT, dated as of March 29, 2005 (this “Agreement”), among ITC^DeltaCom, Inc., a Delaware
corporation (the “Parent”), Interstate FiberNet, Inc., a Delaware corporation (the “Borrower”), the Subsidiaries of the Parent listed on the signature page hereof, the lenders listed on the signature pages hereof
(the “Lenders”), Welsh, Carson, Anderson & Stowe VIII, L.P., as administrative agent (together with any successor administrative agent appointed pursuant to Article VIII, the “Administrative Agent”) for
the Lenders and as collateral agent (together with any successor collateral agent appointed pursuant to Article VIII, the “Collateral Agent” and, together with the Administrative Agent, the “Agents”).

  
 RECITALS: 
  
 WHEREAS, the Parent, the Borrower, the subsidiary guarantors listed on the
signature pages thereto, the Lenders and the Agents are party to the Credit Agreement, dated as of October 6, 2003, as amended (the “Original Second Lien Credit Agreement”); 
  
 WHEREAS, pursuant to the Credit Agreement, dated as of April 5, 2000, (the
“Original ITCD Credit Agreement”), among the Borrower, the Parent, the subsidiary guarantors listed on the signature pages thereof, and the banks, financial institutions and other institutional lenders from time to time parties
thereto as lenders or agents, such lenders made available to the Borrower $160,000,000, consisting of $100,000,000 under the Tranche 1 Term B Facility, as defined in the Original ITCD Agreement, and $60,000,000 under the Tranche 2 Term B Facility,
as defined in the Original ITCD Agreement in order to finance (a) working capital and certain capital expenditures (including the build-out of the collocation and data services businesses) and other general corporate purposes and (b) the purchase of
certain equipment, respectively; 
  
 WHEREAS, (a) the Borrower,
ITC^DeltaCom Communications, Inc. (“Communications” and together with the Borrower, the “Lessees”) and NTFC Capital Corporation (“NTFC”) are party to that certain Master Lease Agreement, dated December 29,
2000, and the schedules, annexes and security documents related thereto (as amended through the date hereof, the “NTFC Capital Lease”), and (b) Communications and General Electric Capital Corporation (“GE Lessor”)
are party to that certain Master Lease Agreement, dated December 31, 2001, and the schedules, annexes and security documents related thereto (as amended through the date hereof, the “GECC Capital Lease”); 
  
 WHEREAS, the Parent, the Borrower, the subsidiary guarantors listed on the
signature pages thereof, and the banks, financial institutions and other institutional lenders from time to time parties thereto as lenders or agents, entered into (a) an amendment and restatement, dated as of October 29, 2002, of the
Original ITCD Credit Agreement (the “First Amended ITCD Credit Agreement”) and (b) a second amendment and restatement, dated as of October 6, 2003, of the First Amended ITCD Credit Agreement (the “Second Amended ITCD
Credit Agreement”); and 
  

 WHEREAS, the Loan Parties (as defined below) have requested (a) that certain First Lien Lenders (as
defined below) make additional term loans available to the Borrower under the terms and conditions described in the First Lien Credit Agreement (as defined below), (b) that the Second Lien Lenders (as defined below) consent to an amendment and
restatement of the indebtedness owing under the Second Lien Credit Agreement, (c) the First Lien Lenders and the Second Lien Lenders consent to the incurrence by the Borrower of subordinated secured indebtedness pursuant to this Agreement, (d) that
the First Lien Lenders, NTFC and the GE Lessor consent to a restructuring of the indebtedness owing under the Second Amended ITCD Credit Agreement, the NTFC Capital Lease and the GECC Capital Lease, and (e) in connection with the foregoing, that the
Lenders agree to provide subordinated secured indebtedness pursuant to terms of this Agreement; 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows: 
  
 ARTICLE I

  
 DEFINITIONS AND ACCOUNTING TERMS 
  
 Section 1.01. Certain Defined Terms. As used in this Agreement, the
following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): 
  
 “Administrative Agent” has the meaning specified in the preamble of this Agreement. 
  
 “Administrative Agent’s Account” means
the account of the Administrative Agent as the Administrative Agent shall specify in writing to the Lenders. 
  
 “Advance” means a Term Advance. 
  

“Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is
under common control with such Person or is a director or officer of such Person. For purposes of this definition, the term “control” (including the terms “controlling”, “controlled by” and “under common control
with”) of a Person means the possession, direct or indirect, of the power to vote 10% or more of the Voting Interests of such Person or to direct or cause the direction of the management and policies of such Person, whether through the
ownership of Voting Interests, by contract or otherwise. 
  
 “Agents” has the meaning specified in the preamble of this Agreement. 
  
 “Agreement” means this Credit Agreement, dated as of March 29, 2005, among the Parent, the Borrower, the subsidiaries
listed on the signature pages 

  

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hereto, the Lenders and the Agents, as amended, amended and restated, supplemented or otherwise modified from time to time. 
  
 “Agreement Value” means, for each Hedge
Agreement, on any date of determination, an amount determined by the Administrative Agent equal to: (a) in the case of a Hedge Agreement documented pursuant to the Master Agreement (Multicurrency-Cross Border) published by the International Swap and
Derivatives Association, Inc. (the “Master Agreement”), the amount, if any, that would be payable by any Loan Party or any of its Subsidiaries to its counterparty to such Hedge Agreement, as if (i) such Hedge Agreement was being
terminated early on such date of determination, (ii) such Loan Party or Subsidiary was the sole “Affected Party,” and (iii) the Administrative Agent was the sole party determining such payment amount (with the Administrative Agent making
such determination pursuant to the provisions of the form of Master Agreement); or (b) in the case of a Hedge Agreement traded on an exchange, the mark-to-market value of such Hedge Agreement, which will be the unrealized loss on such Hedge
Agreement to the Loan Party or Subsidiary of a Loan Party to such Hedge Agreement determined by the Administrative Agent based on the settlement price of such Hedge Agreement on such date of determination; or (c) in all other cases, the
mark-to-market value of such Hedge Agreement, which will be the unrealized loss on such Hedge Agreement to the Loan Party or Subsidiary of a Loan Party to such Hedge Agreement determined by the Administrative Agent as the amount, if any, by which
(i) the present value of the future cash flows to be paid by such Loan Party or Subsidiary exceeds (ii) the present value of the future cash flows to be received by such Loan Party or Subsidiary pursuant to such Hedge Agreement; capitalized terms
used and not otherwise defined in this definition shall have the respective meanings set forth in the above described Master Agreement. 
  
 “Approved Fund” means, with respect to any Lender that is a fund that invests in bank loans, any other fund that invests
in bank loans and is advised or managed by the same investment advisor as such Lender or by an Affiliate of such investment advisor. 
  
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an Eligible Assignee, and
accepted by the Administrative Agent, in accordance with Section 9.07 and in substantially the form of Exhibit B hereto. 
  
 “Assumed BTI Debt” means (a) the Debt evidenced by the Tranche 3 Term B Advances, (as provided and defined in the First
Lien Credit Agreement), (b) the Debt under the Second Lien Loan Documents, (c) unsecured Debt in the principal amount of $18,525,000 evidenced by the 101⁄2% Senior Notes due 2007 of BTI and (d) unsecured Debt in the principal amount of $7,100,000
evidenced by the note payable by BTI, Inc. to the order of P&H, Inc. 
  
 “Bankruptcy Code” means title 11 of the United States Code, as amended. 
  

 3 

 “Benefit Plan Exchange Offer” means any transaction in which the Parent
acquires and/or retires Equity Plan Securities in exchange for other Equity Plan Securities. 
  
 “Board Designees” means individuals whose nomination for election, appointment or election as directors of the Parent is
effectuated pursuant to (a) the Governance Agreement or (b) the Series A Certificate of Designation or the Series B Certificate of Designation. 
  
 “Borrower” has the meaning specified in the preamble of this Agreement. 
  
 “Borrower’s Account” means the account
of the Borrower as the Borrower shall specify in writing to the Administrative Agent. 
  
 “Borrowing” means a Term Borrowing. 
  
 “Business Day” means a day of the year on which banks are not required or authorized by law
to close in New York City. 
  
 “BTI” means BTI Telecom Corp. 
  
 “BTI, Inc.” means Business Telecom, Inc. 
  
 “Capital Lease Assignments” means those certain UCC-3 financing statements authenticated by GE Lessor and NTFC,
respectively, pursuant to which GE Lessor and NTFC will assign to the First Lien Agents and the Second Lien Agents their respective security interests in the assets subject to the GECC Capital Lease and the NTFC Capital Lease, respectively.

  
 “Capitalized Leases” means
all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases. 
  
 “Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents
(however designated, whether voting or non-voting) in equity of such Person, whether outstanding on the date of this Agreement or issued thereafter, including, without limitation, all Common Stock and Preferred Stock. 
  
 “Cash Equivalents” means any of the
following, to the extent owned by the Parent or any of its Subsidiaries free and clear of all Liens other than Liens created under the Collateral Documents and having a maturity of not greater than 360 days from the date of issuance thereof: (a)
readily marketable direct obligations of the Government of the United States or any agency or instrumentality thereof or obligations unconditionally guaranteed by the full faith and credit of the Government of the United States; (b) insured
certificates of deposit of or time deposits with any commercial bank that is a Lender or a member of the Federal Reserve System, issues (or the parent of which issues) commercial paper rated as described in clause (c) below, is organized under the

  

 4 

 
laws of the United States or any State thereof and has combined capital and surplus of at least $1 billion; (c) commercial paper in an aggregate amount of no
more than $160,000,000 per issuer outstanding at any time, issued by any corporation organized under the laws of any State of the United States and rated at least “P-1” (or the then equivalent grade) by Moody’s Investors Service, Inc.
or “A-1” (or the then equivalent grade) by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc.; or (d) obligations issued by any state of the United States of America or any municipality or other political subdivision
of any such state or any public instrumentality thereof having, at the time of acquisition, the highest rating obtainable from any of Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., Moody’s Investors Service, Inc. or
Fitch Ratings, Inc., including, without limitation, auction rate certificates. 
  
 “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to
time. 
  
 “CERCLIS” means the
Comprehensive Environmental Response, Compensation and Liability Information System maintained by the U.S. Environmental Protection Agency. 
  
 “Change of Control” means the occurrence on any date after the Effective Date of any of the following: (a) a
“person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) becomes the “beneficial owner” (within the meaning of Rule 13d-3 of the SEC under the Exchange Act) of more than 35% of the
total voting power of the Voting Stock of the Parent on a Fully Diluted Basis and such ownership represents a greater percentage of the total voting power of the Voting Stock of the Parent, on a Fully Diluted Basis, than the percentage of the total
voting power of the Voting Stock of the Parent, on a Fully Diluted Basis, beneficially owned (within the meaning of Rule 13d-3 of the SEC under the Exchange Act) by the Existing Stockholders on such date; or (b) individuals who on the Effective Date
constitute the board of directors of the Parent (together with any new directors whose appointment by the board of directors of the Parent or whose nomination by the board of directors of the Parent for election by the Parent’s stockholders was
approved by a vote of at least a majority of the members of the board of directors then in office who either were members of the board of directors on the Effective Date or whose appointment or nomination for election was previously so approved)
cease for any reason to constitute a majority of the members of the board of directors then in office; or (c) the Parent shall cease to own 100% directly of the Equity Interests of the Borrower and 100%, directly or indirectly, of the Equity
Interests of the other Loan Parties. For purposes of clause (b) of this definition, all Board Designees shall be deemed to be members of the board of directors of the Parent whose appointment or nomination for election was approved in the
manner specified in clause (b). 
  
 “Chief Financial Officer” means, with respect to any Loan Party, the officer of such Loan Party designated by such Loan Party as its chief financial 

  

 5 

 
officer or, if there is no such officer designation, the officer of such Loan Party designated by such Loan Party as its principal accounting officer.

  
 “Collateral” means all
“Collateral” referred to in the Collateral Documents and all other property that is or is intended to be subject to any Lien in favor of the Collateral Agent for the benefit of the Secured Parties. 
  
 “Collateral Account” has the meaning
specified in the Security Agreement. 
  
 “Collateral Agent” has the meaning specified in the preamble of this Agreement. 
  
 “Collateral Documents” means the Security Agreement, the Third Lien Intercreditor and Subordination Agreement, the
Mortgages and any other agreement that creates or purports to create a Lien in favor of the Collateral Agent for the benefit of the Secured Parties. 
  
 “Commitment” means a Term Commitment. 
  
 “Common Stock” means, with respect to any Person, any and all shares, interests,
participations or other equivalents (however designated, whether voting or non-voting) of such Person’s equity, other than Preferred Stock of such Person, whether outstanding on the date of this Agreement or issued thereafter, including,
without limitation, all series and classes of such common stock. 
  
 “Communications” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “Competitor” shall mean any Person identified on Schedule III hereto (or any Affiliate thereof) and any other
Person (or any Affiliate thereof) that engages primarily, or as one of its principal activities, in the business of providing competitive local exchange telecommunications services to business customers. 
  
 “Confidential Information” means
information that any Loan Party furnishes to any Agent or any Lender on a confidential basis, but does not include any such information that is or becomes generally available to the public or that is or becomes available to such Agent or such Lender
from a source other than the Loan Parties which such Agent or such Lender do not have reason to believe is confidential information. Notwithstanding anything to the contrary set forth in this definition or in this Agreement, “Confidential
Information” shall not include information relating to the tax structure or tax treatment of any structure or transaction and all materials of any kind (including opinions and other tax analyses) that are provided to the party relating to such
tax treatment and tax structure, excluding information the confidentiality of which is reasonably necessary to comply with U.S. Federal or state securities laws, it being the intent of the foregoing to cause any structure or transaction not to be
treated as having been offered under conditions of confidentiality for purposes of Section 1.6011-4(b)(3) 

  

 6 

 
(or any successor provision) of the Treasury Regulations promulgated under Section 6011 of the Internal Revenue Code, and this definition shall be construed
in a manner consistent with such purpose. 
  
 “Consolidated” refers to the consolidation of accounts in accordance with GAAP. 
  
 “Contingent Obligation” means, with respect to any Person, any Obligation or arrangement of such Person to guarantee or
intended to guarantee any Debt, leases, dividends or other payment Obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including, without
limitation, (a) the direct or indirect guarantee, endorsement (other than for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by such Person of the Obligation of a primary
obligor, (b) the Obligation to make take-or-pay or similar payments, if required, regardless of nonperformance by any other party or parties to an agreement or (c) any Obligation of such Person, whether or not contingent, (i) to purchase any such
primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (A) for the purchase or payment of any such primary obligation or (B) to maintain working capital or equity capital of the primary
obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, assets, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the
primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof. The amount of any Contingent Obligation shall be deemed to be an amount
equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made (or, if less, the maximum amount of such primary obligation for which such Person may be liable pursuant to the terms of the
instrument evidencing such Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder), as determined by such Person in good
faith. 
  
 “Conversion Shares”
means the Common Stock or other securities issued or issuable upon conversion of the Series A Preferred Stock. 
  
 “Debt” of any Person means, at any time without duplication, (a) all indebtedness of such Person for borrowed money, (b)
all Obligations of such Person for the deferred purchase price of property or services (other than trade payables not overdue by more than 90 days incurred in the ordinary course of such Person’s business, unless such trade payables overdue by
more than 90 days are contested in good faith by such Person), (c) all Obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all Obligations of such Person created or arising under any conditional sale or
other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the 

  

 7 

 
event of default are limited to repossession or sale of such property), (e) all Obligations of such Person as lessee under Capitalized Leases, (f) all
Obligations of such Person under acceptance, letter of credit or similar facilities, (g) all Obligations of such Person to Redeem any Equity Interests in such Person or in any other Person, or to Redeem options, warrants or other rights to purchase
or otherwise acquire such Equity Interests, before the date which is six months after the Termination Date (provided that if the exercise of the right to Redeem such Equity Interests or options, warrants or other rights is at the option of
such Person under the terms of such Equity Interests or otherwise, the date of such Person’s exercise, if any, of such right to Redeem shall be the date on which such Person shall first be deemed to have an Obligation to Redeem such Equity
Interests or options, warrants or other rights for purposes of this definition), valued in the case of Preferred Interests at the stated liquidation preference of such Preferred Interests plus accrued and unpaid dividends from time to time, (h) all
Obligations of such Person in respect of Hedge Agreements, valued at the Agreement Value thereof, (i) all Contingent Obligations of such Person and (j) all indebtedness and other payment Obligations referred to in clauses (a) through
(i) above of another Person secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property (including, without limitation, accounts and contract rights) owned by such
Person, even though such Person has not assumed or become liable for the payment of such indebtedness or other payment Obligations. Notwithstanding clause (g) of this definition, the Obligations referred to in such clause (g) as
constituting “Debt” shall not include Obligations of such Person to Redeem Equity Interests in such Person (or to Redeem options, warrants or other rights to purchase or otherwise acquire such Equity Interests) in exchange for, or out of
the proceeds of a substantially concurrent offering of, other Equity Interests (or options, warrants or other rights to purchase or otherwise acquire such other Equity Interests) in such Person, provided that any Obligations of such Person to
Redeem such other Equity Interests (or to Redeem options, warrants or other rights to purchase or acquire such other Equity Interests) shall be subject to the provisions of such clause (g). 
  
 “Default” means any Event of Default or any
event that would constitute an Event of Default but for the requirement that notice be given or time elapse or both. 
  
 “Defaulted Amount” means, with respect to any Lender at any time, any amount required to be paid by such Lender to any
Agent or any other Lender hereunder or under any other Loan Document at or prior to such time that has not been so paid as of such time, including, without limitation, any amount required to be paid by such Lender to (a) any other Lender pursuant to
Section 2.10 to purchase any participation in Advances owing to such other Lender and (b) any Agent pursuant to Section 8.05 to reimburse such Agent for such Lender’s ratable share of any amount required to be paid by the Lenders
to such Agent. In the event that a portion of a Defaulted Amount shall be deemed paid pursuant to Section 2.12(a), the remaining portion of such Defaulted Amount shall be 

  

 8 

 
considered a Defaulted Amount originally required to be paid hereunder or under any other Loan Document on the same date as the Defaulted Amount so deemed
paid in part. 
  
 “Defaulting
Lender” means, at any time, any Lender that, at such time, (a) owes a Defaulted Amount or (b) shall take any action or be the subject of any action or proceeding of a type described in Section 6.01(f). 
  
 “Disclosed Litigation” has the meaning
specified in Section 3.01(c). 
  
 “Effective Date” means the first date on which the conditions set forth in Section 3.01 shall have been satisfied. 
  
 “Eligible Assignee” means any commercial bank or financial institution (including, without limitation, any fund that
regularly invests in loans similar to the Advances) as approved (so long as no Default has occurred and is continuing at the time of the relevant assignment pursuant to Section 9.07) by the Borrower (such approval not to be unreasonably
withheld or delayed); provided, however, that neither any Loan Party nor any Affiliate of a Loan Party shall qualify as an Eligible Assignee under this definition; provided, further, that no Competitor shall qualify as an
Eligible Assignee under this definition. 
  
 “Environmental Action” means any action, suit, demand, demand letter, claim, notice of non-compliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement
relating in any way to any Environmental Law, any Environmental Permit or Hazardous Material or arising from alleged injury or threat to health, safety or the environment, including, without limitation, (a) by any governmental or regulatory
authority for enforcement, cleanup, removal, response, remedial or other actions or damages and (b) by any governmental or regulatory authority or third party for damages, contribution, indemnification, cost recovery, compensation or injunctive
relief. 
  
 “Environmental Law”
means any Federal, state, local or foreign statute, law, ordinance, rule, regulation, code, order, writ, judgment, injunction, decree or judicial or agency interpretation, policy or guidance relating to pollution or protection of the environment,
health, safety or natural resources, including, without limitation, those relating to the use, handling, transportation, treatment, storage, disposal, release or discharge of Hazardous Materials. 
  
 “Environmental Permit” means any permit,
approval, identification number, license or other authorization required under any Environmental Law. 
  
 “Equity Interests” means, with respect to any Person, shares of capital stock of (or other ownership or profit interests
in) such Person, warrants, options or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, securities convertible into or exchangeable for shares
of capital stock of (or other ownership 

  

 9 

 
or profit interests in) such Person or warrants, rights or options for the purchase or other acquisition from such Person of such shares (or such other
interests), and other ownership or profit interests in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other
interests are authorized or otherwise existing on any date of determination. 
  
 “Equity Plan Securities” means any Equity Interests awarded, granted, sold or issued pursuant to any stock option, restricted stock, stock incentive, deferred compensation, profit sharing, defined
benefit, defined contribution or other benefit plan of any Loan Party or any Subsidiary of any Loan Party. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations
promulgated and rulings issued thereunder. 
  
 “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a member of the controlled group of any Loan Party, or under common control with any Loan Party, within the meaning of Section 414 of the Internal
Revenue Code. 
  
 “ERISA Event”
means (a) (i) the occurrence of a reportable event, within the meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day notice requirement with respect to such event has been waived by the PBGC or (ii) the requirements of Section
4043(b) of ERISA apply with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with
respect to such Plan within the following 30 days; (b) the application for a minimum funding waiver with respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan, pursuant to Section
4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA), excluding, however, a “standard termination” as defined in Section 4041(a)(2) of ERISA; (d) the cessation of
operations at a facility of any Loan Party or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by any Loan Party or any ERISA Affiliate from a Multiple Employer Plan during a plan year for which it
was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for imposition of a lien under Section 302(f) of ERISA shall have been met with respect to any Plan; (g) the adoption of an amendment to a Plan requiring the
provision of security to such Plan pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of
ERISA that constitutes grounds for the termination of, or the appointment of a trustee to administer, such Plan. 
  
 “Events of Default” has the meaning specified in Section 6.01. 
  

 10 

 “Exchange Act” means the Securities and Exchange Act of 1934, as
amended. 
  
 “Existing Debt
Refinancing” has the meaning set forth in Section 5.02(b)(vi). 
  
 “Existing Stockholders” means the WCAS Securityholders and their Affiliates. For purposes of this definition,
“Affiliate” means, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person. For purposes of this definition, “control” (including,
with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “Extraordinary Receipt” means any cash received by or paid to or for the account of any Person not in the ordinary course
of business, including, without limitation, tax refunds, pension plan reversions, proceeds of insurance (other than proceeds of business interruption insurance to the extent such proceeds constitute compensation for lost earnings), condemnation
awards (and payments in lieu thereof), indemnity payments, any net proceeds of any Permitted Refinancing (in excess of the amount necessary to pay in full the obligations in respect of the First Lien Loan Documents and the Second Lien Loan
Documents) and any purchase price adjustment received in connection with any purchase agreement; provided, however, that an Extraordinary Receipt shall not include cash receipts, awards or payments received from proceeds of insurance,
condemnation awards (or payments in lieu thereof) or indemnity payments to the extent that such proceeds, awards or payments (a) are in respect of loss or damage to fixed assets, real property or equipment and are applied to replace or repair such
fixed assets, real property or equipment in respect of which such proceeds, awards or payments were received in accordance with the terms of the Loan Documents (or to reimburse such Person for expenditures previously incurred on account of such
replacement or repair); provided that such proceeds, awards or payments (i) are immediately deposited into an account held by the Collateral Agent on behalf of the Lenders, and (ii) are applied within nine months after the occurrence of such
damage or loss, provided that the Borrower shall have delivered documentation reasonably satisfactory to the Administrative Agent evidencing the cost and proposed use of any equipment repaired or replaced pursuant thereto, or (b) are received
by any Person in respect of any third party claim against such Person and applied to pay (or to reimburse such Person for its prior payment of) such claim and the costs and expenses of such Person with respect thereto, or (c) are received by any
Person by way of reimbursement or indemnification of such Person for costs and expenses incurred by such Person. 
  
 “Facility” means the Term Facility. 
  

 11 

 “FCC” means the Federal Communications Commission, or any governmental
agency succeeding to the functions thereof. 
  
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the
Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any
day that is a Business Day, the average of the quotations for such day for such transactions received by the Administrative Agent from three Federal funds brokers of recognized standing selected by it. 
  
 “First Amended ITCD Credit Agreement” has
the meaning specified in the recitals of the parties to this Agreement. 
  
 “First Lien Collateral Agent” means Wells Fargo Bank, N.A. and any successor collateral agent appointed pursuant to Article VIII of the First Lien Credit Agreement. 
  
 “First Lien Credit Agreement” means the
Third Amended and Restated Credit Agreement, dated as of even date herewith, among the Parent, the Borrower, the subsidiary guarantors listed on the signature pages thereof, the First Lien Lenders and the other parties thereto. 
  
 “First Lien Facilities” means the
“Facilities” (as provided and defined in the First Lien Credit Agreement). 
  
 “First Lien Lenders” means the “Lenders” (as provided and defined in the First Lien Credit Agreement).

  
 “First Lien Loan Documents”
means the “Loan Documents” (as provided and defined in the First Lien Credit Agreement). 
  
 “First Lien Security Agreement” means the “Security Agreement” (as provided and defined in the First Lien
Credit Agreement). 
  
 “Fiscal
Year” means a Fiscal Year of the Parent and its Consolidated Subsidiaries ending on December 31 in any calendar year. 
  
 “Fully Diluted Basis” means, as of any date of determination, the sum of (a) the number of shares of Voting Stock
outstanding as of such date of determination plus (b) the number of shares of Voting Stock issuable upon the exercise, conversion or exchange of all then-outstanding warrants, options, convertible Capital Stock or indebtedness, exchangeable Capital
Stock or indebtedness, or other rights exercisable for or convertible or exchangeable into, directly or indirectly, shares of Voting Stock, whether at the time of issue or upon 

  

 12 

 
the passage of time or upon the occurrence of some future event, and whether or not in the money as of such date of determination. 
  
 “GAAP” has the meaning specified in
Section 1.03. 
  
 “GECC Capital
Lease” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “GE Lessor” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “Governance Agreement” means the Governance
Agreement, dated as of October 6, 2003, as amended, among the Parent, WCAS Capital Partners III, L.P., Welsh, Carson, Anderson & Stowe VIII, L.P., WCAS Information Partners, L.P. and certain individual investors and trusts listed on the
signature pages thereto, , as amended by the Amendment No. 1 to Governance Agreement, dated as of March 29, 2005. 
  
 “Guaranteed Obligations” has the meaning specified in Section 7.01(a). 
  
 “Hazardous Materials” means (a) petroleum
or petroleum products, by-products or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other chemicals, materials or substances designated, classified or regulated as
hazardous or toxic or as a pollutant or contaminant under any Environmental Law. 
  
 “Hedge Agreements” means interest rate swap, cap or collar agreements, interest rate future or option contracts, currency
swap agreements, currency future or option contracts and other hedging agreements. 
  
 “Incur” means, with respect to any Debt, to incur, create, issue, assume, guarantee or otherwise become liable for or
with respect to, or become responsible for, the payment of, contingently or otherwise, such Debt. 
  
 “Indemnified Party” has the meaning specified in Section 9.04(b). 
  
 “Information Statement” has the meaning
specified in Section 4.01(cc). 
  
 “Initial Lenders” means the Lenders party hereto on the Effective Date. 
  
 “Insufficiency” means, with respect to any Plan, the amount, if any, of its unfunded benefit liabilities, as defined in
Section 4001(a)(18) of ERISA. 
  
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
  

 13 

 “Inventory” means all Inventory referred to in Section 1(b) of the
Security Agreement. 
  
 “Investment” in any Person means any loan or advance to such Person, any purchase or other acquisition of any Equity Interests or Debt or the assets comprising a division or business unit or a substantial part or all of the
business of such Person, any capital contribution to such Person or any other direct or indirect investment in such Person, including, without limitation, any acquisition by way of a merger or consolidation and any arrangement pursuant to which the
investor Incurs Debt of the types referred to in clause (i) or (j) of the definition of “Debt” in respect of such Person. 
  
 “Lenders” means the lenders listed on the signature pages hereof and each Person that shall become a Lender hereunder
pursuant to Section 9.07 for so long as such Lender or Person, as the case may be, shall be a party to this Agreement. 
  
 “Lending Office” means, with respect to any Lender, the office of such Lender specified as its “Lending Office”
opposite its name on Schedule I hereto or in the Assignment and Acceptance pursuant to which it became a Lender, as the case may be, or such other office of such Lender as such Lender may from time to time specify to the Borrower and the
Administrative Agent. 
  
 “Lessees” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “Lien” means any lien, security interest or other charge or encumbrance of any kind, or any other type of preferential
arrangement, including, without limitation, the lien or retained security title of a conditional vendor and any easement, right of way or other encumbrance on title to real property. 
  
 “Loan Documents” means (a) for purposes of this Agreement and the Notes and any amendment,
supplement or modification hereof or thereof, (i) this Agreement, (ii) the Notes and (iii) the Collateral Documents and (b) for purposes of the Collateral Documents and for all other purposes other than for purposes of this Agreement and the Notes,
(i) this Agreement, (ii) the Notes and (iii) the Collateral Documents. 
  
 “Loan Parties” means the Borrower, the Parent and the Subsidiaries of the Parent. 
  
 “Margin Stock” has the meaning specified in Regulation U. 
  
 “Material Adverse Change” means any material adverse change in the business, condition
(financial or otherwise), operations, performance, properties or prospects of the Parent and its Subsidiaries, taken as a whole. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, condition (financial or otherwise),
operations, performance, properties 

  

 14 

 
or prospects of the Loan Parties and the Subsidiaries of the Loan Parties, taken as a whole, (b) the rights and remedies of the Agents or any Lender under
any Loan Document or (c) the ability of any Loan Party to perform its Obligations under any Loan Document to which it is or is to be a party. 
  
 “Material Contract” means, with respect to any Person, each contract to which such Person is a party involving aggregate
consideration payable to or by such Person of $10,000,000 or more in any year or otherwise material to the business, condition (financial or otherwise), operations, performance, properties or prospects of such Person. With respect to the Loan
Parties, the Merger Agreement shall be deemed to be a Material Contract. 
  
 “Merger Agreement” means the Agreement and Plan of Merger, dated as of July 2, 2003, as amended, among BTI, the parties identified on the signature pages thereto as the “WCAS
Securityholders”, the Parent and 8DBC1 Corp. 
  
 “Merger Agreement Common Stock” means (a) the Common Stock of the Parent issued or issuable pursuant to the Merger Agreement, (b) the Series B Conversion Shares and (c) the Series B Warrant Shares. 
  
 “Mortgage Policies” has the meaning
specified in Section 5.01(n)(i)(B). 
  
 “Mortgages” has the meaning specified in Section 5.01(n)(i). 
  
 “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which any Loan Party or
any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to make contributions. 
  
 “Multiple Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of
ERISA, that (a) is maintained for employees of any Loan Party or any ERISA Affiliate and at least one Person other than the Loan Parties and the ERISA Affiliates or (b) was so maintained and in respect of which any Loan Party or any ERISA Affiliate
could have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated. 
  
 “Net Cash Proceeds” means, with respect to any sale, lease, transfer or other disposition of any asset by any Person
(excluding Equity Interests), or any Extraordinary Receipt received by or paid to or for the account of any Person, the aggregate amount of cash received from time to time (whether as initial consideration or through payment or disposition of
deferred consideration) by or on behalf of such Person in connection with such transaction after deducting therefrom only (without duplication) (a) reasonable and customary brokerage commissions, underwriting fees and discounts, legal fees and
expenses, finder’s fees and other similar fees and commissions and out-of-pocket costs and expenses, and (b) the amount of taxes payable in connection with or as a result of such transaction, in each case to the extent, but only to the extent,
that the 

  

 15 

 
amounts so deducted are, at the time of receipt of such cash, actually paid to a Person that is not an Affiliate of such Person and are properly attributable
to such transaction or to the asset that is the subject thereof; provided, however, that in the case of taxes that are deductible under clause (b) above but for the fact that, at the time of receipt of such cash, such taxes have not
been actually paid or are not then payable, such Loan Party or such Subsidiary may deduct an amount (the “Reserved Amount”) equal to the amount reserved in accordance with GAAP for such Loan Party’s or such Subsidiary’s
reasonable estimate of such taxes, other than taxes for which such Loan Party or such Subsidiary is indemnified; provided, further, however, that, at the time such taxes are paid, an amount equal to the amount, if any, by which
the Reserved Amount for such taxes exceeds the amount of such taxes actually paid shall constitute “Net Cash Proceeds” of the type for which such taxes were reserved for all purposes hereunder; provided, further, still
that Net Cash Proceeds from Extraordinary Receipts shall not include up to $500,000 of cash proceeds in the aggregate received in connection with one or more such receipts, to the extent such cash proceeds are applied to replace the asset in respect
of which such cash proceeds were received or are otherwise invested in such Person’s business, so long as application is made within nine months after the occurrence of such receipt. 
  
 “New Warrants” means warrants issued
pursuant to the New Warrant Documents. 
  
 “New Warrant Documents” means (a) that certain Warrant Agreement, dated as of March 29, 2005, between the Parent and Mellon Investor Services LLC, as warrant agent, as amended, amended and restated, supplemented or
otherwise modified from time to time, (b) the Amendment No. 1 to Governance Agreement, dated as of March 29, 2005, by and among the Parent, WCAS Capital Partners III, L.P., WCAS, WCAS Information Partners, L.P. and certain individual investors and
trusts listed on the signature pages thereto and (c) each other agreement, certificate, document or instrument delivered in connection with clauses (a) and (b) above. 
  
 “Note” means a Term Note. 
  
 “NPL” means the National Priorities List under CERCLA. 
  
 “NTFC” has the meaning specified in the
recitals of the parties to this Agreement. 
  
 “NTFC Capital Lease” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “Obligation” means, with respect to any Person, any payment, performance or other obligation of such Person of any kind,
including, without limitation, any liability of such Person on any claim, whether or not the right of any creditor to payment in respect of such claim is reduced to judgment, 

  

 16 

 
liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured or unsecured, and whether or not such claim is
discharged, stayed or otherwise affected by any proceeding referred to in Section 6.01(f). Without limiting the generality of the foregoing, the Obligations of any Loan Party under the Loan Documents include (a) the obligation to pay
principal, interest, charges, expenses, fees, attorneys’ fees and disbursements, indemnities and other amounts payable by such Loan Party under any Loan Document, including any Post-Petition Interest and (b) the obligation of such Loan Party to
reimburse any amount in respect of any of the foregoing that any Lender, in its sole discretion, may elect to pay or advance on behalf of such Loan Party. 
  
 “Open Year” has the meaning specified in Section 4.01(o)(iii). 
  
 “Ordinary Course Obligations” means
obligations (exclusive of obligations for the payment of borrowed money) under letters of credit, surety bonds, pledges, deposits or other arrangements made to secure the performance of tenders, bids, leases, statutory or regulatory obligations,
bankers’ acceptances, surety and appeal bonds, government contracts, performance and return-of-money bonds and other obligations of a similar nature incurred in the ordinary course of business. 
  
 “Original ITCD Credit Agreement” has the
meaning specified in the recitals of the parties to this Agreement. 
  
 “Original Second Lien Credit Agreement” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “Other Taxes” has the meaning specified in Section 2.09(b). 
  
 “Parent” has the meaning specified in the
preamble of this Agreement. 
  
 “Parent Guaranty” means the guaranty of the Parent set forth in Article VII. 
  
 “PBGC” means the Pension Benefit Guaranty Corporation (or any successor). 
  
 “Permitted Deferred Taxes” has the meaning
specified in that certain Limited Waiver to Second Amended and Restated Credit Agreement, dated as of February 28, 2005, by and among the Wells Fargo Bank, N.A., the lenders specified on the signature pages thereto and the Loan Parties.

  
 “Permitted Encumbrances” has
the meaning specified in the Mortgages. 
  
 “Permitted Liens” means such of the following as to which no enforcement, collection, execution, levy or foreclosure proceeding shall have been commenced: (a) Liens for taxes, assessments and governmental charges or levies
to the extent not required to be paid under Section 5.01(b); (b) Liens imposed by 

  

 17 

 
law, such as materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in the ordinary
course of business securing obligations that are not overdue for a period of more than 30 days; (c) pledges or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations;
and (d) Permitted Encumbrances. 
  
 “Permitted Parent Debt” has the meaning specified in Section 5.02(b)(iv). 
  
 “Permitted Refinancing” means a refinancing (satisfying all of the requirements of Section 5.02(b)(vii)) by the
Loan Parties of (a) first, all (but not less or more than all) of the principal amount outstanding under the First Lien Loan Documents and the termination of the First Lien Loan Documents upon the consummation of such refinancing and (b) thereafter,
all (or such lesser amount as shall be acceptable to the Required Lenders under and as defined in the Second Lien Loan Documents) of the principal amount outstanding under the Second Lien Loan Documents and, if paid in full in cash, the termination
of all of the Second Lien Loan Documents upon the consummation of such refinancing. 
  
 “Person” means an individual, partnership, corporation (including a business trust), limited liability company, joint
stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. 
  
 “PIK Amount” has the meaning specified in Section 2.06(a). 
  
 “Plan” means a Single Employer Plan or a
Multiple Employer Plan. 
  
 “Plan of
Reorganization” means the Plan of Reorganization of the Parent under Chapter 11 of the Bankruptcy Code in In re ITC^DeltaCom, Inc. (Case No. 02-11848 (MFW)). 
  
 “Pledged Debt” has the meaning specified in the Security Agreement. 
  
 “Pledged Shares” has the meaning specified
in the Security Agreement. 
  
 “Post-Petition Interest” means any and all interest and expenses that accrue after the commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of any one or more of the
Loan Parties (or would accrue but for the operation of applicable bankruptcy or insolvency laws) whether or not such interest is allowed or allowable as a claim in any such proceeding. 
  
 “Pre-Amendment Information” means all of the written information provided by or on behalf
of the Borrower to the Lenders prior to the Effective Date. 
  

 18 

 “Preferred Interests” means, with respect to any Person, Equity
Interests issued by such Person that are entitled to a preference or priority over any other Equity Interests issued by such Person upon any distribution of such Person’s property and assets, whether by dividend or upon liquidation. 

 
 “Preferred Stock” means, with respect to
any Person, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of such Person’s preferred or preference equity, whether outstanding on the date of this Agreement or issued
thereafter, including, without limitation, all series and classes of such preferred or preference stock. 
  
 “PUC” means any state regulatory agency or body that exercises jurisdiction over the rates or services or the ownership,
construction or operation of any network facility or long distance telecommunications systems or over Persons who own, construct or operate a network facility or long distance telecommunications systems, in each case by reason of the nature or type
of the business subject to regulation and not pursuant to laws and regulations of general applicability to Persons conducting business in such state. 
  
 “Receivables Financing” means a refinancing (satisfying all of the requirements of Section 5.02 (b)(viii)) by the Loan
Parties of (a) first, all (but not less or more than all) of the principal amount outstanding under the First Lien Loan Documents and the termination of all of the First lien Loan Documents upon the consummation of such refinancing and (b)
thereafter, all (or such lesser amount shall be acceptable to the Required Lenders under and as defined in the Second Lien Loan Documents) of the principal amount outstanding under the Second Lien Loan Documents and, if paid in full in cash,
the termination of all of the Second Lien Loan Documents upon the consummation of such refinancing. 
  
 “Redeem” means to purchase, redeem or otherwise retire or acquire for value, provided, however, that,
notwithstanding the foregoing, “Redeem” shall not include (a) the acquisition and/or retirement by the Parent of Equity Interests of the Parent which are surrendered to the Parent as indemnification payments pursuant to the Merger
Agreement, (b) the acquisition and/or retirement by the Parent of Common Stock or other Equity Interests of the Parent tendered by the holder of an Equity Plan Security in payment of an exercise or purchase price specified in such Equity Plan
Security or (c) a Benefit Plan Exchange Offer. 
  
 “Refinanced First Lien Loan Documents” means the loan documents relating to any Permitted Refinancing, any Receivables Financing or any Replacement Financing of the First Lien Loan Documents. 
  
 “Refinanced Second Lien Loan Documents”
means the loan documents relating to any Permitted Refinancing, any Receivables Financing or any Replacement Financing of the Second Lien Loan Documents. 
  
 “Register” has the meaning specified in Section 2.13(b). 
  

 19 

 “Regulation U” means Regulation U of the Board of Governors of the
Federal Reserve System, as in effect from time to time. 
  
 “Reorganization Common Stock” means the Common Stock of the Parent issued or issuable under or in connection with the Plan of Reorganization, including, without limitation, the Conversion Shares and
the Warrant Shares. 
  
 “Reorganization
Securities” means (a) the Reorganization Common Stock, (b) the Series A Preferred Stock and (c) the Warrants. 
  
 “Replaced Lender” has the meaning specified in Section 2.09(g). 
  
 “Replacement Effective Date” has the
meaning specified in Section 2.09(g). 
  
 “Replacement Financing” means a refinancing (satisfying all of the requirements of Section 5.02(b)(ix)) by the Loan Parties of (a) first, all (but not less than all) of the principal amount outstanding under the
First Lien Loan Documents and the termination of all of the First Lien Loan Documents upon the consummation of such refinancing and (b) thereafter, all (or such lesser amount as shall be acceptable to the Required Lenders under and as defined
in the Second Lien Loan Documents) of the principal amount outstanding under the Second Lien Loan Documents and if paid in full in cash, the termination of all of the Second Lien Loan Documents upon the consummation of such refinancing. 

 
 “Replacement Lender” has the meaning
specified in Section 2.09(g). 
  
 “Required Lenders” means, at any time, Lenders owed or holding at least a majority of the aggregate principal amount of the Advances outstanding at such time; provided, however, that if any Lender shall be a
Defaulting Lender at such time, there shall be excluded from the determination of Required Lenders at such time (A) the aggregate principal amount of the Advances owing to such Lender (in its capacity as a Lender) and outstanding at such time and
(B) the aggregate unused Commitments of such Lender at such time. 
  
 “Responsible Officer” means any officer of any Loan Party or any of its Subsidiaries. 
  
 “Restricted Payment” has the meaning specified in Section 5.02(g). 
  
 “SEC” means the United States Securities
and Exchange Commission. 
  
 “Second
Amended ITCD Credit Agreement” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “Second Lien Collateral Agent” means General Electric Capital Corporation and any successor collateral agent appointed
pursuant to Article VIII of the Second Lien Credit Agreement. 
  

 20 

 “Second Lien Credit Agreement” means the Amended and Restated Credit
Agreement, dated as of the date hereof, among the Parent, the Borrower, the subsidiary guarantors listed on the signature pages thereof, the Second Lien Lenders and the other parties thereto. 
  
 “Second Lien Facility” means the
“Facility” (as provided and defined in the Second Lien Credit Agreement). 
  
 “Second Lien Lenders” means the “Lenders” (as provided and defined in the Second Lien Credit Agreement).

  
 “Second Lien Loan Documents”
means the “Loan Documents” (as provided and defined in the Second Lien Credit Agreement). 
  
 “Secured Obligations” has the meaning specified in the Security Agreement. 
  
 “Secured Parties” means the Agents and the
Lenders. 
  
 “Securities Act”
means the Securities Act of 1933, as amended. 
  
 “Security Agreement” has the meaning specified in Section 3.01(b)(ii). 
  
 “Series A Certificate of Designation” means the Parent’s Certificate of Designation of the Powers, Preferences and
Relative, Participating, Optional and other Special Rights of 8% Series A Convertible Redeemable Preferred Stock and Qualifications, Limitations and Restrictions thereof, as in effect from time to time. 
  
 “Series A PIK Dividends” means the shares
of Series A Preferred Stock paid or payable as dividends on outstanding shares of Series A Preferred Stock. 
  
 “Series A Preferred Stock” means the shares of preferred stock of the Parent designated as the 8% Series A Convertible
Redeemable Preferred Stock and issued pursuant to the Series A Certificate of Designation, including, without limitation, Series A PIK Dividends. 
  
 “Series B Certificate of Designation” means the Parent’s Certificate of Designation of the Powers, Preferences and
Relative, Participating, Optional and other Special Rights of 8% Series B Convertible Redeemable Preferred Stock and Qualifications, Limitations and Restrictions thereof, as in effect from time to time. 
  
 “Series B PIK Dividends” means the shares
of Series B Preferred Stock paid or payable as dividends on outstanding shares of Series B Preferred Stock. 
  
 “Series B Preferred Stock” means the shares of preferred stock of the Parent designated as the 8% Series B Convertible
Redeemable Preferred Stock and issued pursuant to the Series B Certificate of Designation, including, without limitation, Series B PIK Dividends. 
  

 21 

 “Single Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Loan Party or any ERISA Affiliate and no Person other than the Loan Parties and the ERISA Affiliates or (b) was so maintained and in respect of which any Loan Party or any
ERISA Affiliate could have liability under Section 4069 of ERISA in the event such plan has been or were to be terminated. 
  
 “Subordinated Debt” means Debt that, by the terms of any agreement or instrument pursuant to which such Debt is Incurred,
is expressly made subordinate in right of payment and priority to the Debt under the First Lien Loan Documents and the Second Lien Loan Documents. 
  
 “Subsidiary” of any Person means any corporation, partnership, joint venture, limited liability company, trust or estate
of which (or in which) more than 50% of (a) the issued and outstanding capital stock having ordinary voting power to elect a majority of the Board of Directors of such corporation (irrespective of whether at the time capital stock of any other class
or classes of such corporation shall or might have voting power upon the occurrence of any contingency), (b) the interest in the capital or profits of such partnership, joint venture or limited liability company or (c) the beneficial interest in
such trust or estate is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries. 
  
 “Surviving Debt” means Debt of each Loan
Party and its Subsidiaries outstanding as of the Effective Date. 
  
 “Tax Agreement” means the Tax Indemnification Agreement, dated as of August 26, 1997, between ITC Holding Company, Inc. and the Parent. 
  
 “Tax Certificate” has the meaning specified in Section 5.03(k). 
  
 “Taxes” has the meaning specified in
Section 2.09(a). 
  
 “Term
Advance” means the single advance made by each Term Lender, according to such Lender’s Term Commitment. 
  
 “Term Borrowing” means a borrowing consisting of simultaneous Term Advances made by the Term Lenders. 
  
 “Term Commitment” means, with respect to
any Term Lender at any time, the amount set forth for such Lender in the Register maintained by the Administrative Agent pursuant to Section 2.13(b) as such Lender’s “Term Commitment.” 
  
 “Term Facility” means, at any time, the
aggregate amount of the Term Lenders’ Term Commitments at such time. 
  

 22 

 “Term Lender” means any Lender that has a Term Commitment. 

 
 “Term Loan” has the meaning specified in
Section 2.01(a). 
  
 “Term
Note” means a promissory note of the Borrower payable to the order of any Term Lender, in substantially the form of Exhibit A hereto, evidencing the indebtedness of the Borrower to such Lender resulting from the Term Advance made by
such Lender, as amended. 
  
 “Termination
Date” means the earlier of (a) the date on which the Administrative Agent, by notice to the Borrower, declares the Notes, all interest thereon and all other amounts payable under this Agreement and the other Loan Documents to be forthwith
due and payable pursuant to Section 6.01 and (b) the date that is the later of (i) December 31, 2009 and (ii) 91 calendar days after the maturity of the Second Lien Facility. 
  
 “Third Lien Intercreditor and Subordination Agreement” means the Intercreditor and
Subordination Agreement, dated as of the date hereof, among each of the Agents, the Lenders, the Agents as provided and defined in the First Lien Credit Agreement, on its behalf and on behalf of the First Lien Lenders, the Agents, as provided and
defined in the Second Lien Credit Agreement, the Second Lien Lenders and the Loan Parties, in substantially the form of Exhibit D hereof, as the same may be amended, amended and restated and/or modified from time to time, including any
replacement thereof or any additional intercreditor agreement in connection with any Permitted Financing, Receivables Financing, or Replacement Financing. 
  
 “Transactions” means the transactions contemplated by the Loan Documents. 
  
 “Unencumbered Parcel” means any parcel of
real property owned by any Loan Party or its Subsidiaries that was not previously pledged as Collateral to secure the Obligations of the Loan Parties under the Loan Documents. 
  
 “Voting Interests” means shares of capital stock issued by a corporation, or equivalent
Equity Interests in any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has
been suspended by the happening of such a contingency. 
  
 “Voting Stock” means, with respect to any Person, Capital Stock of any class or kind ordinarily having the power to vote for the election of directors, managers or other voting members of the governing body of such Person.
For purposes of this definition, Common Stock of the Parent shall constitute Voting Stock of the Parent and the Series A Preferred Stock and the Series B Preferred Stock shall not constitute Voting Stock of the Parent. 
  

 23 

 “Warrant Shares” means the Common Stock or other securities issued or
issuable upon the exercise of the Warrants. 
  
 “Warrants” means the Common Stock purchase warrants issued by the Parent on the date of the initial issuance of the Series A Preferred Stock and any warrants issued in exchange or substitution therefor or upon exercise
thereof in accordance with the warrant agreement pursuant to which such Common Stock purchase warrants were issued. 
  
 “WCAS” means Welsh, Carson, Anderson & Stowe VIII, L.P. 
  
 “WCAS Securityholders” means, collectively,
(a) WCAS Capital Partners III, L.P., (b) WCAS, (c) WCAS Information Partners, L.P., (d) each of the individual investors and trusts that executed the Governance Agreement as “WCAS Securityholders,” (e) the Affiliates of any of the Persons
referred to in clauses (a), (b), (c) and (d) above, (f) the related Persons of any of the Persons referred to in clauses (a), (b), (c) and (d) above and (g) the WCAS Securityholder Permitted
Transferees. For purposes of this definition, “Affiliate” means, as applied to any Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person. For purposes of
this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “WCAS Securityholder Permitted Transferees” means the individuals who are the heirs,
executors, administrators, testamentary trustees, legatees, beneficiaries, spouses or lineal descendants of any of the WCAS Securityholders who are natural Persons. 
  
 “Welfare Plan” means a welfare plan, as defined in Section 3(1) of ERISA, that is
maintained for employees of any Loan Party or in respect of which any Loan Party could have liability. 
  
 “Withdrawal Liability” has the meaning specified in Part I of Subtitle E of Title IV of ERISA. 
  
 Section 1.02. Computation of Time Periods; Other Definitional
Provisions. In this Agreement and the other Loan Documents in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and
“until” each mean “to but excluding.” References in the Loan Documents to any agreement or contract “as amended” shall mean and be a reference to such agreement or contract as amended, amended and restated, supplemented
or otherwise modified from time to time in accordance with its terms. 
  
 Section 1.03. Accounting Terms. All accounting terms not specifically defined herein, unless otherwise specified herein, shall be construed in accordance with generally 

  

 24 

 
accepted accounting principles in the United States of America as in effect from time to time (“GAAP”) and consistent with those applied in
the preparation of the financial statements of the Parent and its Subsidiaries. 
  
 ARTICLE II 
  
 AMOUNTS AND TERMS OF
THE ADVANCES 
  
 Section 2.01. Term Commitments. (a)
Subject to the terms and conditions hereof, each Term Lender, severally and not jointly, agrees to make a term loan (a “Term Loan”) to the Borrower on the Effective Date in an amount not to exceed the amount of the Term Commitment
of such Lender. 
  
 (b) The Borrower shall give the Administrative
Agent irrevocable notice (which notice must be received by the Administrative Agent prior to 10:00 A.M., New York City time, one Business Day prior to the Effective Date) requesting that the Term Lenders make the Term Advance on the Effective Date
and specifying the amount to be borrowed. Upon receipt of such notice the Administrative Agent shall promptly notify each Term Lender thereof. Not later than 12:00 Noon, New York City time, on the Effective Date, each Term Lender shall make
available to the Administrative Agent at the Administrative Agent’s Account an amount in immediately available funds equal to such Term Lenders’ ratable portion of such Term Borrowing in accordance with the respective Term Commitments of
such Term Lender and the other Term Lenders. After the Administrative Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article III, the Administrative Agent shall make such funds available to
the Borrower by crediting the Borrower’s Account. 
  
 Section
2.02. Intentionally omitted. 
  
 Section 2.03. Repayment of
Advances. The Borrower shall repay to the Administrative Agent for the ratable account of the Term Lenders the aggregate outstanding principal amount of the Term Advances on the Termination Date. Each Lender hereby acknowledges that the receipt
of any such payments is subject to the Third Lien Intercreditor and Subordination Agreement. 
  
 Section 2.04. Intentionally omitted. 
  
 Section 2.05. Prepayments. (a) Optional. After indefeasible payment and satisfaction in full of the obligations under the First Lien Loan Documents and the Second Lien Loan Documents and subject to the terms of the Third Lien
Intercreditor and Subordination Agreement, the Borrower may, upon at least one Business Day’s notice to the Administrative Agent stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given the
Borrower shall, prepay the outstanding aggregate principal amount of the Advances in whole or ratably in part, together with accrued interest to the date of such prepayment on the aggregate principal amount prepaid; provided, however,
that each partial prepayment shall be in an aggregate principal amount of $500,000 or an integral multiple of $500,000 in excess thereof. Each such prepayment of any Advances shall be applied ratably to each Lender. 
  

 25 

 (b) Mandatory. Subject to the terms and conditions of the Third Lien Intercreditor and
Subordination Agreement: 
  
 (i) Intentionally
omitted. 
  
 (ii) The Borrower shall, within two
Business Days after the date of receipt of the Net Cash Proceeds by any Loan Party from (A) the sale, lease, transfer or other disposition of any assets of any Loan Party or any Subsidiary of a Loan Party (other than leases in the ordinary course of
business or any sale, lease, transfer or other disposition of assets pursuant to clause (i), (ii), (v)(B), (vi), or (vii) of Section 5.02(e)) prepay an aggregate principal amount of the Advances equal to
such Net Cash Proceeds in excess, so long as no Default or Event of Default has occurred and is continuing, of $30,000,000; provided that no portion of the Net Cash Proceeds retained by the Loan Parties pursuant to this subsection (ii) shall
be used by any Loan Party in connection with any merger with any Person or acquisition of assets of any Person (other than assets acquired in the ordinary course of the Loan Parties’ business); and (B) any Extraordinary Receipt received by, or
paid to, or for the account of, any Loan Party or any Subsidiary of a Loan Party and not otherwise included in clause (A) above, prepay an aggregate principal amount of the Advances in any amount equal to the amount of such Net Cash Proceeds.

  
 (iii) The Borrower shall, within two Business
Days after the date of receipt, prepay an aggregate principal amount of the Advances in an amount equal to 100% of the proceeds received on account of (A) Debt incurred by any Loan Party (other than Special Term B Advances (as defined in the First
Lien Loan Agreement) it being understood that the proceeds of any Permitted Refinancing, Receivables Financing or Replacement Financing shall be used to repay the Obligations in respect of the First Lien Facilities and the Second Lien Facility) or
(B) any offering of any Equity Interests of the Parent or any other Loan Party except for Equity Interests consisting of any (1) Common Stock of the Parent, the proceeds of the issuance and sale of which are applied to refinance the Series A
Preferred Stock or Series B Preferred Stock at not more than 100% of liquidation value plus accrued dividends, (2) Equity Plan Securities (3) New Warrants or (4) Reorganization Securities. 
  
 (iv) Intentionally omitted. 
  
 (v) Intentionally omitted. 
  
 (vi) All prepayments under this subsection (b) shall
be made together with accrued interest to the date of such prepayment on the principal amount prepaid and shall be applied ratably to each Lender. 
  

 26 

 Section 2.06. Interest. (a) Scheduled Interest. The Borrower shall pay interest on the
unpaid principal amount of each Advance owing to each Lender from the date of such Advance until such principal amount shall be paid in full, at a rate of 12% per annum, compounded quarterly, and shall be (i) until the satisfaction in full of the
Loan Parties’ obligations under the First Lien Loan Documents, the Second Lien Loan Documents, any Permitted Refinancing, any Receivables Financing or any Replacement Financing, added to the principal amount of the Term Loans (the “PIK
Amount”) and no such interest for such period shall be paid in cash, and (ii) thereafter, at the option of the Borrower, (A) payable in arrears on the last day of each March, June, September and December or (B) added to the principal amount
of the Term Loans and no such interest for such period shall be paid in cash. The principal amount of the Term Loans shall, without further action on the part of the Borrower or the Lenders, be deemed to be increased by the PIK Amount so capitalized
and added to the principal in accordance with this clause (a). 
  
 (b) Default Interest. Upon the occurrence and during the continuance of a Default, the Borrower shall pay interest on (i) the unpaid principal amount of each Advance owing to each Lender, in the manner and on the dates referred to in
clause (a) above and on demand, at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on such Advance pursuant to clause (a) above and (ii) to the fullest extent permitted by law, the
amount of any interest, fee or other amount payable under the Loan Documents that is not paid when due, from the date such amount shall be due until such amount shall be paid in full, payable in arrears on the date such amount shall be paid in full
and on demand, at a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on the Advance pursuant to clause (a) above. 
  
 Section 2.07. Increased Costs, Etc. If, due to either (i) the introduction of or any change in or in the
interpretation of any law or regulation or (ii) the compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law), there shall be any increase in the amount of capital
required or expected to be maintained by any Lender or any corporation controlling such Lender as a result of or based upon the existence of such Lender’s commitment to lend hereunder and other commitments of such type, then, upon demand by
such Lender or such corporation (with a copy of such demand to the Administrative Agent), the Borrower shall pay to the Administrative Agent for the account of such Lender, from time to time as specified by such Lender, additional amounts sufficient
to compensate such Lender in the light of such circumstances, to the extent that such Lender reasonably determines such increase in capital to be allocable to the existence of such Lender’s commitment to lend hereunder. A certificate as to such
amounts submitted to the Borrower by such Lender shall be conclusive and binding for all purposes, absent manifest error. 
  
 Section 2.08. Payments and Computations. (a) The Borrower shall make each payment hereunder and under the Notes, irrespective of any right of
counterclaim or set-off (except as otherwise provided in Section 2.12), not later than 11:00 A.M. (New York City time) on the day when due in U.S. dollars to the Administrative Agent at the Administrative Agent’s Account in same day
funds, with payments being received by the Administrative Agent after such time being deemed to have been received on the next succeeding Business Day. The Administrative Agent will promptly thereafter cause like funds to be distributed (i) if such

  

 27 

 
payment by the Borrower is in respect of principal, interest, commitment fees or any other Obligation then payable hereunder and under the Notes to more than
one Lender, to such Lenders for the account of their respective Lending Offices ratably in accordance with the amounts of such respective Obligations then payable to such Lenders and (ii) if such payment by the Borrower is in respect of any
Obligation then payable hereunder to one Lender, to such Lender for the account of its Lending Office, in each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and recording of
the information contained therein in the Register pursuant to Section 9.07(e), from and after the effective date of such Assignment and Acceptance, the Administrative Agent shall make all payments hereunder and under the Notes in respect of
the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves.

  
 (b) The Borrower hereby authorizes each Lender, if and to the
extent payment owed to such Lender is not made when due hereunder or, in the case of a Lender, under the Note held by such Lender, to charge from time to time against any or all of the Borrower’s accounts with such Lender any amount so due.

  
 (c) All computations of interest and fees shall be made by the
Administrative Agent on the basis of a year of 365 or 366 days, as the case may be, for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest, fees or commissions are payable.
Each determination by the Administrative Agent of an interest rate, fee or commission hereunder shall be conclusive and binding for all purposes, absent manifest error. 
  
 (d) Whenever any payment hereunder or under the Notes shall be stated to be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or commitment fee, as the case may be. 
  
 (e) Unless the Administrative Agent shall have received notice from the
Borrower prior to the date on which any payment is due to any Lender hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on
such date and the Administrative Agent may, in reliance upon such assumption, cause to be distributed to each such Lender on such due date an amount equal to the amount then due such Lender. If and to the extent the Borrower shall not have so made
such payment in full to the Administrative Agent, each such Lender shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is
distributed to such Lender until the date such Lender repays such amount to the Administrative Agent, at the Federal Funds Rate. 
  
 (f) If the Administrative Agent receives funds for application to the Obligations under the Loan Documents under circumstances for which the Loan
Documents do not specify the Advances to which, or the manner in which, such funds are to be applied, the Administrative Agent may, but shall not be obligated to, elect to distribute such funds to each 

  

 28 

 
Lender ratably in accordance with such Lender’s proportionate share of the principal amount of all outstanding Advances, in repayment or prepayment of
such of the outstanding Advances or other Obligations owed to such Lender, and for application to such principal installments, as the Administrative Agent shall direct. 
  
 Section 2.09. Taxes. (a) Any and all payments by or for the account of any Loan Party hereunder, or in respect of the
Notes or any other Loan Document, shall be made, in accordance with Section 2.08, free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with
respect thereto, excluding, in the case of each Lender and each Agent, taxes that are imposed on its overall net income by the United States and taxes that are imposed on its overall net income (and franchise taxes imposed in lieu thereof) by the
state or foreign jurisdiction under the laws of which such Lender or such Agent, as the case may be, is organized or any political subdivision thereof and, in the case of each Lender, taxes that are imposed on its overall net income (and franchise
taxes imposed in lieu thereof) by the state or foreign jurisdiction of such Lender’s Lending Office or any political subdivision thereof (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect
of payments hereunder or under the Notes being hereinafter referred to as “Taxes”). If a Loan Party shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder or under any Note or other Loan
Documents to any Lender or any Agent, (i) the sum payable by such Loan Party shall be increased as may be necessary so that after such Loan Party and the Administrative Agent have made all required deductions (including deductions applicable to
additional sums payable under this Section 2.09) such Lender or such Agent, as the case may be, receives an amount equal to the sum it would have received had no such deductions been made, (ii) such Loan Party shall make all such deductions
and (iii) such Loan Party shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. 
  
 (b) In addition, each Loan Party shall pay any present or future stamp, documentary, excise, property or similar taxes, charges or levies that arise from
any payment made hereunder or under the Notes or other Loan Documents or from the execution, delivery or registration of, performance under, or otherwise with respect to, this Agreement, the Notes or any other Loan Document (hereinafter referred to
as “Other Taxes”). 
  
 (c) Each Loan Party shall
indemnify each Lender and each Agent for and hold them harmless against the full amount of Taxes and Other Taxes, and for the full amount of taxes of any kind imposed by any jurisdiction on amounts payable under this Section 2.09, imposed on
or paid by such Lender or such Agent (as the case may be) and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30 days from the date
such Lender or such Agent (as the case may be) makes written demand therefor. 
  
 (d) Within 30 days after the date of any payment of Taxes, the relevant Loan Party shall furnish to the Administrative Agent, at its address referred to in Section 9.02, the original or a certified copy of a
receipt evidencing such payment. In the case of any payment hereunder or under the Notes or other Loan Documents by or on behalf of such Loan Party through an account or branch outside the United States or by or on behalf of such Loan Party by a
payor that is not a United States person, if such Loan Party determines that no Taxes are 

  

 29 

 
payable in respect thereof, such Loan Party shall furnish, or shall cause such payor to furnish, to the Administrative Agent, at such address, an opinion of
counsel acceptable to the Administrative Agent stating that such payment is exempt from Taxes. For purposes of subsections (d) and (e) of this Section 2.09, the terms “United States” and “United States
person” shall have the meanings specified in Section 7701 of the Internal Revenue Code. 
  
 (e) Each Lender organized under the laws of a jurisdiction outside the United States shall, on or prior to the date of its execution and delivery of this Agreement in the case of each Initial Lender, as the case may
be, and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in the case of each other Lender, and from time to time thereafter as requested in writing by the relevant Loan Party (but only so long thereafter as such
Lender remains lawfully able to do so), provide each of the Administrative Agent and each Loan Party with two original Internal Revenue Service forms W-8ECI or W-8 or W-8BEN (and, if applicable to the exemption claimed by a Lender that delivers a
form W-8 or W-8BEN, a certificate representing that such Lender is not a “bank” for purposes of Section 881(c) of the Internal Revenue Code, is not a 10-percent shareholder, within the meaning of Section 871(h)(3)(B) of the Internal
Revenue Code, of the Loan Party and is not a controlled foreign corporation related to the Loan Party, within the meaning of Section 864(d)(4) of the Internal Revenue Code), as appropriate, or any successor or other form prescribed by the Internal
Revenue Service, certifying that such Lender is exempt from or entitled to a reduced rate of United States withholding tax on payments pursuant to this Agreement or the Notes (or, in the case of a Lender providing a form W-8 or W-8BEN, certifying
that such Lender is a foreign corporation, partnership, estate or trust). If the forms provided by a Lender at the time such Lender first becomes a party to this Agreement indicate a United States interest withholding tax rate in excess of zero,
withholding tax at such rate shall be considered excluded from Taxes unless and until such Lender provides the appropriate forms certifying that a lesser rate applies, whereupon withholding tax at such lesser rate only shall be considered excluded
from Taxes for periods governed by such forms; provided, however, that if, at the effective date of the Assignment and Acceptance pursuant to which a Lender becomes a party to this Agreement, the Lender assignor was entitled to
payments under subsection (a) of this Section 2.09 in respect of United States withholding tax with respect to interest paid at such date, then, to such extent, the term Taxes shall include (in addition to withholding taxes that may be
imposed in the future or other amounts otherwise includable in Taxes) United States withholding tax, if any, applicable with respect to the Lender assignee on such date. If any form or document referred to in this subsection (e) requires the
disclosure of information, other than information necessary to compute the tax payable and information required on the date hereof by Internal Revenue Service form W-8, W-8BEN or W-8ECI (or the related certificate described above), that the Lender
reasonably considers to be confidential, the Lender shall give notice thereof to the Loan Party and shall not be obligated to include in such form or document such confidential information. 
  
 (f) For any period with respect to which a Lender has failed to provide the
relevant Loan Party with the appropriate form described in subsection (e) above (other than if such failure is due to a change in law occurring after the date on which a form originally was required to be provided or if such form otherwise is
not required under subsection (e) above), such Lender shall not be entitled to indemnification under subsection (a) or (c) of this Section 2.09 with respect to Taxes imposed by reason of such failure; provided,
however, that should a 

  

 30 

 
Lender become subject to Taxes because of its failure to deliver a form required hereunder, the relevant Loan Party shall take such steps as such Lender
shall reasonably request to assist such Lender to recover such Taxes. 
  
 (g) The Loan Party may replace any Lender that has requested additional amounts under this Section 2.09, by written notice to such Lender and the Administrative Agent and identifying one or more persons each of which shall be
reasonably acceptable to the Administrative Agent (each, a “Replacement Lender”, and collectively, the “Replacement Lenders”) to replace such Lender (the “Replaced Lender”); provided that (i)
the notice from such Loan Party to the Replaced Lender and the Administrative Agent provided for herein above shall specify an effective date for such replacement (the “Replacement Effective Date”), which shall be at least five (5)
Business Days after such notice is given and (ii) as of the relevant Replacement Effective Date, each Replacement Lender shall enter into an Assignment and Acceptance with the Replaced Lender pursuant to Section 9.07(a) (but shall not be
required to pay the processing fee otherwise payable to the Administrative Agent pursuant to Section 9.07(a)), pursuant to which such Replacement Lenders collectively shall acquire, in such proportion among them as they may agree with such
Loan Party and the Administrative Agent, all (but not less than all) of the Commitments and outstanding Advances of the Replaced Lender, and, in connection therewith, shall pay to the Replaced Lender, as the purchase price in respect thereof, an
amount equal to the sum as of the Replacement Effective Date, without duplication, of (x) the unpaid principal amount of, and all accrued but unpaid interest on, all outstanding Advances of the Replaced Lender and (y) the Replaced Lender’s
ratable share of all accrued but unpaid fees owing to the Replaced Lender hereunder. 
  
 Section 2.10. Sharing of Payments, Etc. If any Lender shall obtain at any time any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise, other than as a result of
an assignment pursuant to Section 9.07) (a) on account of Obligations due and payable to such Lender hereunder and under the Notes at such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations
due and payable to such Lender at such time to (ii) the aggregate amount of the Obligations due and payable to all Lenders hereunder and under the Notes at such time) of payments on account of the Obligations due and payable to all Lenders hereunder
and under the Notes at such time obtained by all the Lenders at such time or (b) on account of Obligations owing (but not due and payable) to such Lender hereunder and under the Notes at such time in excess of its ratable share (according to the
proportion of (i) the amount of such Obligations owing to such Lender at such time to (ii) the aggregate amount of the Obligations owing (but not due and payable) to all Lenders hereunder and under the Notes at such time) of payments on account of
the Obligations owing (but not due and payable) to all Lenders hereunder and under the Notes at such time obtained by all of the Lenders at such time, such Lender shall forthwith purchase from the other Lenders such interests or participating
interests in the Obligations due and payable or owing to them, as the case may be, as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided, however, that if all or any
portion of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each other Lender shall be rescinded and such other Lender shall repay to the purchasing Lender the purchase price to the extent of such
Lender’s ratable share (according to the proportion of (i) the purchase price paid to such Lender to (ii) the aggregate purchase price paid to all Lenders) of such recovery together with an amount equal to such Lender’s ratable share
(according to the 

  

 31 

 
proportion of (i) the amount of such other Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest
or other amount paid or payable by the purchasing Lender in respect of the total amount so recovered. The Borrower agrees that any Lender so purchasing an interest or participating interest from another Lender pursuant to this Section 2.12
may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such interest or participating interest, as the case may be, as fully as if such Lender were the direct creditor of the
Borrower in the amount of such interest or participating interest, as the case may be. 
  
 Section 2.11. Intentionally omitted. 
  
 Section 2.12. Defaulting Lenders. (a) In the event that, at any one time, (i) any Lender shall be a Defaulting Lender, (ii) such Defaulting Lender shall owe a Defaulted Amount to any Agent or any of the other Lenders and (iii) the
Borrower shall make any payment hereunder or under any other Loan Document to the Administrative Agent for the account of such Defaulting Lender, then the Administrative Agent may, on its behalf or on behalf of such other Agents or such other
Lenders and to the fullest extent permitted by applicable law, apply at such time the amount so paid by the Borrower to or for the account of such Defaulting Lender to the payment of each such Defaulted Amount to the extent required to pay such
Defaulted Amount. In the event that the Administrative Agent shall so apply any such amount to the payment of any such Defaulted Amount on any date, the amount so applied by the Administrative Agent shall constitute for all purposes of this
Agreement and the other Loan Documents payment, to such extent, of such Defaulted Amount on such date. Any such amount so applied by the Administrative Agent shall be retained by the Administrative Agent or distributed by the Administrative Agent to
such other Agents or such other Lenders, ratably in accordance with the respective portions of such Defaulted Amounts payable at such time to the Administrative Agent, such other Agents and such other Lenders and, if the amount of such payment made
by the Borrower shall at such time be insufficient to pay all Defaulted Amounts owing at such time to the Administrative Agent, such other Agents and such other Lenders, in the following order of priority: 
  
 (i) first, to the Administrative Agent for any Defaulted
Amounts then owing to the Administrative Agent hereunder; and 
  
 (ii) second, to any other Lenders for any Defaulted Amounts then owing to such other Lenders, ratably in accordance with such respective Defaulted Amounts then owing to such other Lenders. 
  
 Any portion of such amount paid by the Borrower for the account of such Defaulting Lender
remaining, after giving effect to the amount applied by the Administrative Agent pursuant to this subsection (b), shall be applied by the Administrative Agent as specified in subsection (b) of this Section 2.12. 
  
 (b) In the event that, at any one time, (i) any Lender shall be a Defaulting
Lender, (ii) such Defaulting Lender shall not owe a Defaulted Amount and (iii) the Borrower, any Agent or any other Lender shall be required to pay or distribute any amount hereunder or under any other Loan Document to or for the account of such
Defaulting Lender, then the 

  

 32 

 
Borrower or such Agent or such other Lender shall pay such amount to the Administrative Agent to be held by the Administrative Agent, to the fullest extent
permitted by applicable law, in escrow or the Administrative Agent shall, to the fullest extent permitted by applicable law, hold in escrow such amount otherwise held by it. Any funds held by the Administrative Agent in escrow under this
subsection (b) shall be deposited by the Administrative Agent in a segregated account, in the name and under the control of the Administrative Agent, but subject to the provisions of this subsection (b). The terms applicable to such
account, including the rate of interest payable with respect to the credit balance of such account from time to time, shall be customary terms applicable to escrow accounts maintained with financial institutions. Any interest credited to such
account from time to time shall be held by the Administrative Agent in escrow under, and applied by the Administrative Agent from time to time in accordance with the provisions of, this subsection (b). The Administrative Agent shall, to the
fullest extent permitted by applicable law, apply all funds so held in escrow from time to time to the extent necessary to make any Advances required to be made by such Defaulting Lender and to pay any amount payable by such Defaulting Lender
hereunder and under the other Loan Documents to the Administrative Agent or any other Lender, as and when such Advances or amounts are required to be made or paid and, if the amount so held in escrow shall at any time be insufficient to make and pay
all such Advances and amounts required to be made or paid at such time, in the following order of priority: 
  
 (i) first, to the Administrative Agent for any amounts then due and payable by such Defaulting Lender to the Administrative Agent
hereunder; 
  
 (ii) second, to any other Lenders
for any amount then due and payable by such Defaulting Lender to such other Lenders hereunder, ratably in accordance with such respective amounts then due and payable to such other Lenders; and 
  
 (iii) third, to the Borrower for any Advance then required
to be made by such Defaulting Lender pursuant to a Commitment of such Defaulting Lender. 
  
 In the event that any Lender that is a Defaulting Lender shall, at any time, cease to be a Defaulting Lender, any funds held by the Administrative Agent in escrow at such time with respect to such Lender shall be
distributed by the Administrative Agent to such Lender and applied by such Lender to the Obligations owing to such Lender at such time under this Agreement and the other Loan Documents ratably in accordance with the respective amounts of such
Obligations outstanding at such time. 
  
 (c) The rights and
remedies against a Defaulting Lender under this Section 2.12 are in addition to other rights and remedies that the Borrower may have against such Defaulting Lender and that any Agent or any Lender may have against such Defaulting Lender with
respect to any Defaulted Amount. 
  
 Section 2.13. Evidence of
Debt; Register. (a) Each Lender shall maintain, in accordance with its usual practice, an account or accounts evidencing the indebtedness of the 

  

 33 

 
Borrower to such Lender resulting from each Advance owing to such Lender from time to time, including the amounts of principal and interest payable and paid
to such Lender from time to time hereunder. The Borrower agrees that upon notice by any Lender to the Borrower (with a copy of such notice to the Administrative Agent) to the effect that a promissory note or other evidence of indebtedness is
required or appropriate in order for such Lender to evidence (whether for purposes of pledge, enforcement or otherwise) the Advances owing to, or to be made by, such Lender, the Borrower shall promptly execute and deliver to such Lender, with a copy
to the Administrative Agent, a Term Note, in substantially the form of Exhibit A, payable to the order of such Lender in a principal amount equal to the Term Advance of such Lender. The Lenders hereby agree that any promissory notes
evidencing the Advances issued by the Borrower to any Lender prior to the date hereof shall be deemed null and void and of no further force or effect for any and all purposes, and each Lender that is a holder of any such note agrees to surrender
such note to the Borrower. All references to Notes in the Loan Documents shall mean Notes, if any, to the extent issued hereunder. 
  
 (b) The Administrative Agent shall maintain at its address referred to in Section 9.02 a register for the recordation of the names and addresses of
the Lenders and the Commitment under each Facility of each Lender from time to time (the “Register”). The Register maintained by the Administrative Agent pursuant to this Section shall also include a control account, and a
subsidiary account for each Lender, in which accounts (taken together) shall be recorded (i) the date and amount of each Borrowing made hereunder, (ii) the terms of each Assignment and Acceptance delivered to and accepted by it, (iii) the amount of
any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, and (iv) the amount of any sum received by the Administrative Agent from the Borrower hereunder and each Lender’s share thereof.

  
 (c) Entries made in good faith by the Administrative Agent in
the Register pursuant to subsection (b) above, and by each Lender in its account or accounts pursuant to subsection (a) above, shall be prima facie evidence of the amount of principal and interest due and payable or to become due and
payable from the Borrower to, in the case of the Register, each Lender and, in the case of such account or accounts, such Lender, under this Agreement, absent manifest error; provided, however, that the failure of the Administrative
Agent or such Lender to make an entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall not limit or otherwise affect the obligations of the Borrower under this Agreement. 
  
 (d) The entries in the Register shall be conclusive and binding for all
purposes, absent manifest error, and the Borrower, the Agents and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by
the Borrower or any Agent or any Lender at any reasonable time and from time to time upon reasonable prior notice. 
  

 34 

 ARTICLE III 
  
 CONDITIONS OF LENDING 
  
 Section 3.01. Conditions Precedent to the Effective Date. The occurrence of the Effective Date is subject to the satisfaction of the following
conditions precedent: 
  
 (a) The Effective Date shall occur on or
before March 29, 2005. 
  
 (b) The Administrative Agent shall have
received the following, each dated the Effective Date (unless otherwise specified), in form and substance satisfactory to the Administrative Agent (unless otherwise specified) and (except for the Notes) in sufficient copies for each Lender:

  
 (i) The Notes payable to the order of the
Lenders, to the extent requested by any Lender pursuant to Section 2.13(a). 
  
 (ii) A security agreement in substantially the form of Exhibit C hereto (together with each other security agreement and security
agreement supplement delivered pursuant to Section 5.01(j), in each case as amended, the “Security Agreement”), duly executed by each Loan Party, together with: 
  
 (A) written confirmation of receipt by the First Lien Collateral Agent of certificates representing the
Pledged Shares referred to under the First Lien Security Agreement, the Second Lien Security Agreement and the Security Agreement accompanied by undated stock powers executed in blank and instruments evidencing the Pledged Debt indorsed in blank, to
be held by the First Lien Collateral Agent pursuant to the terms of the First Lien Security Agreement and otherwise in accordance with the Third Lien Intercreditor and Subordination Agreement. 
  
 (B) acknowledgment copies or stamped receipt copies of
proper financing statements, duly filed on or before the Effective Date under the Uniform Commercial Code of all jurisdictions that the Administrative Agent may reasonably deem necessary or desirable in order to perfect and protect the priority
liens and security interests created under the Security Agreement, covering the Collateral described in the Security Agreement, subject only to the prior Lien of the First Lien Collateral Agent and the Second Lien Collateral Agent and Permitted
Liens and otherwise in accordance with the Third Lien Intercreditor and Subordination Agreement, 
  
 (C) completed requests for information, dated on or before the Effective Date, listing the financing statements referred to in clause
(B) above and all other effective financing statements filed 

  

 35 

 
in the jurisdictions referred to in clause (B) above that name any Loan Party as debtor, together with copies of such other financing statements,

  
 (D) evidence of the completion of all other
recordings and filings of or with respect to the Security Agreement that the Administrative Agent may reasonably deem necessary or desirable in order to perfect and protect the Liens created thereby, 
  
 (E) written confirmation of receipt by the First Lien
Collateral Agent of copies of the Assigned Agreements referred to in the Security Agreement, to be held by the First Lien Collateral Agent pursuant to the terms of the First Lien Security Agreement and otherwise in accordance with the Third Lien
Intercreditor and Subordination Agreement, and 
  
 (F) evidence that all other action that the Administrative Agent may deem reasonably necessary or desirable in order to perfect and protect the liens and security interests created under the Security Agreement has been taken (including,
without limitation, receipt of duly executed payoff letters, UCC-3 termination statements, landlords’ and bailees’ waiver and consent agreements and account control and cash management agreements in form and substance satisfactory to the
Administrative Agent) subject only to the prior Lien of the First Lien Collateral Agent and the Second Lien Collateral Agent and Permitted Liens and otherwise in accordance with the Third Lien Intercreditor and Subordination Agreement. 

 
 (iii) Written confirmation of receipt by the First Lien
Collateral Agent of copies of the Capital Lease Assignments substantially in the form of Exhibit E hereto. 
  
 (iv) The Third Lien Intercreditor and Subordination Agreement in substantially the form of Exhibit D hereto, duly executed by each
of the parties thereto. 
  
 (v) Certified copies
of the resolutions of the Board of Directors of each Loan Party approving the Transactions and each Loan Document to which it is or is to be a party, and of all documents evidencing other necessary corporate action and governmental and other third
party approvals and consents, if any, with respect to the Transactions and each Loan Document to which it is or is to be a party. 
  
 (vi) A copy of a certificate of the Secretary of State of the jurisdiction of incorporation of each Loan Party, dated reasonably near the
date of the Effective Date, certifying (A) as to a true and correct copy of 

  

 36 

 
the charter of such Loan Party and each amendment thereto on file in such Secretary’s office and (B) that (1) such amendments are the only amendments to
such Loan Party’s charter on file in such Secretary’s office, (2) to the extent that the Secretary of State of the applicable jurisdiction of incorporation provides such a certification, such Loan Party has paid all franchise taxes to the
date of such certificate and (C) such Loan Party is duly incorporated and in good standing or presently subsisting under the laws of the State of the jurisdiction of its incorporation. 
  
 (vii) A copy of a certificate of the Secretary of State in each jurisdiction in which each Loan Party is
qualified to do business, dated reasonably near the date of the Effective Date, stating that such Loan Party is duly qualified and in good standing as a foreign corporation in such State and has filed all annual reports required to be filed to the
date of such certificate. 
  
 (viii) A
certificate of each Loan Party, signed on behalf of such Loan Party by its President or a Vice President and its Secretary or any Assistant Secretary, dated the Effective Date (the statements made in which certificate shall be true on and as of the
Effective Date), certifying as to (A) the absence of any amendments to the charter of such Loan Party since the date of the Secretary of State’s certificate referred to in Section 3.01(b)(vi), (B) a true and correct copy of the bylaws of
such Loan Party as in effect on the date on which the resolutions referred to in Section 3.01(b)(v) were adopted and on the Effective Date, (C) the due incorporation and good standing or valid existence of such Loan Party as a corporation
organized under the laws of the jurisdiction of its incorporation, and the absence of any proceeding for the dissolution or liquidation of such Loan Party, (D) the truth of the representations and warranties contained in the Loan Documents as though
made on and as of the Effective Date and (E) the absence of any event occurring and continuing, or resulting from entering into this Agreement, that constitutes a Default. 
  
 (ix) A certificate of the Secretary or an Assistant Secretary of each Loan Party certifying the names and
true signatures of the officers of such Loan Party authorized to sign each Loan Document to which it is or is to be a party and the other documents to be delivered hereunder and thereunder. 
  
 (x) Evidence of insurance naming the Collateral Agent as
additional insured and loss payee with such responsible and reputable insurance companies or associations, and in such amounts and covering such risks, as is reasonably satisfactory to the Lenders. 
  

 37 

 (xi) Favorable opinions of counsel for the Loan Parties, in substantially the form of
Exhibit F hereto and as to such other matters as any Lender through the Administrative Agent may reasonably request. 
  
 (c) There shall exist no action, suit, investigation, litigation or proceeding affecting any Loan Party or any of its Subsidiaries pending or threatened
before any court, governmental agency or arbitrator that could reasonably be expected to have a Material Adverse Effect other than the matters described on Schedule 4.01(f) hereto (the “Disclosed Litigation”). 
  
 (d) All governmental and third party consents and approvals necessary in
connection with the Transactions shall have been obtained (without the imposition of any conditions that are not reasonably acceptable to the Lenders) and shall remain in effect (other than any consents and approvals the absence of which, either
individually or in the aggregate, would not have a Material Adverse Effect); all applicable waiting periods in connection with the Transactions shall have expired without any action being taken by any competent authority (other than any action which
either individually or in the aggregate with all such actions would not reasonably be expected to have a Material Adverse Effect), and no law or regulation shall be applicable in the reasonable judgment of the Lenders, in each case that restrains,
prevents or imposes materially adverse conditions upon the Transactions or the rights of the Loan Parties or their Subsidiaries freely to transfer or otherwise dispose of, or to create any Lien on, any properties now owned or hereafter acquired by
any of them. 
  
 (e) All Pre-Amendment Information shall be true,
correct and complete in all material aspects as of the dates specified therein, and no additional information shall have come to the attention of the Loan Parties that could reasonably be expected to have a Material Adverse Effect. 
  
 (f) The Borrower shall have paid (or made provision therefor in a manner
reasonably satisfactory to the Agents) (i) all accrued and unpaid interest, expenses and fees outstanding with respect to the First Amended ITCD Credit Agreement, (ii) all reasonable and documented costs and expenses of the Administrative Agent
(including the reasonable fees and expenses of legal counsel and financial advisors to the Administrative Agent) and the Lenders, and (iii) the fees set forth in Section 2.07. 
  
 (g) The Lenders shall be reasonably satisfied that (i) the Parent and its Subsidiaries will be able to meet their respective
obligations under all employee and retiree welfare plans, (ii) the employee benefit plans of the Parent and its ERISA Affiliates are, in all material respects, funded in accordance with the minimum statutory requirements, (iii) no “reportable
event” (as defined in ERISA, but excluding events for which reporting has been waived) has occurred as to any such employee benefit plan and (iv) no termination of, or withdrawal from, any such employee benefit plan has occurred or is
contemplated that could reasonably be expected to result in a material liability. 
  
 (h) The parties shall have executed and delivered (i) the First Lien Loan Documents and (ii) the Second Lien Loan Documents, each of which shall be in form and substance reasonable acceptable to the Lenders.

  

 38 

 (i) The Lessees shall have paid all accrued and outstanding interest under the NTFC Capital Lease and
GECC Capital Lease on or before the Effective Date. 
  
 (j) A copy
of the New Warrant Documents and duly executed warrants in definitive form and registered in such names as shall be satisfactory to the Lenders. 
  
 (k) The Administrative Agent shall have received drafts of the audited Consolidated balance sheet of the Loan Parties as at December 31, 2004, and drafts
of the audited, related Consolidated statement of income and Consolidated statement of cash flows of the Loan Parties for the Fiscal Year then ended. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Section 4.01. Representations and Warranties of the Borrower. The Loan Parties represent and warrant, jointly and severally, as follows as of the date hereof and the Effective Date: 
  
 (a) Each Loan Party and each of its respective Subsidiaries
(i) is a corporation duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation, (ii) is duly qualified and in good standing as a foreign corporation (except as set forth in Schedule
4.01(a)(ii) hereto) in each other jurisdiction in which it owns or leases property or in which the conduct of its business requires it to so qualify or be licensed except where the failure to so qualify or be licensed would not be reasonably
likely to have a Material Adverse Effect and (iii) has all requisite corporate power and authority (including, without limitation, all governmental licenses, permits and other approvals (except as set forth on Schedule 4.01(a)(iii) hereto))
to own or lease and operate its properties and to carry on its business as now conducted and as currently proposed to be conducted, except where the failure to have such power or authority would not be reasonably likely to have a Material Adverse
Effect. All of the outstanding Equity Interests in the Borrower have been validly issued, are fully paid and non-assessable and are owned by the Parent free and clear of all Liens, except those created under the Loan Documents. 
  
 (b) Set forth on Schedule 4.01(b) hereto is a
complete and accurate list of all Subsidiaries of each Loan Party as of the Effective Date showing as of the date hereof (as to each such Subsidiary) the jurisdiction of its incorporation, the number of shares of each class of its Equity Interests
authorized, and the number outstanding, on the date hereof and the percentage of each such class of its Equity Interests owned (directly or indirectly) by such Loan Party and the number of shares covered by all outstanding options, warrants, rights
of conversion or purchase and similar rights at the date hereof. All of the outstanding Equity Interests in each Loan Party’s Subsidiaries have been validly issued, are fully paid and non-assessable and are owned by such Loan Party or one or
more of its 

  

 39 

 
Subsidiaries free and clear of all Liens, except those created under the Loan Documents. 
  
 (c) The execution, delivery and performance by each Loan Party of each Loan Document to which it is or is to
be a party, and the consummation of the Transactions, are within such Loan Party’s corporate powers, have been duly authorized by all necessary corporate action, and do not (i) contravene such Loan Party’s charter or bylaws, (ii) violate
any law, rule, regulation (including, without limitation, Regulation X of the Board of Governors of the Federal Reserve System), order, writ, judgment, injunction, decree, determination or award, (iii) conflict with or result in the breach of, or
constitute a default under, any loan agreement, indenture, mortgage, deed of trust, or material contract, lease or other instrument binding on or affecting any Loan Party, any of its Subsidiaries or any of their properties or (iv) except for the
Liens created under the Loan Documents, the First Lien Loan Documents and the Second Lien Loan Documents, result in or require the creation or imposition of any Lien upon or with respect to any of the properties of any Loan Party or any of its
Subsidiaries. No Loan Party or any of its Subsidiaries is in violation of any such law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or in breach of any such contract, loan agreement, indenture, mortgage, deed
of trust, lease or other instrument, the violation or breach of which could be reasonably likely to have a Material Adverse Effect. 
  
 (d) No authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body
(including, without limitation, the FCC or any applicable PUC) or any other third party is required for (i) the due execution, delivery, recordation, filing or performance by any Loan Party of any Loan Document to which it is or is to be a party, or
for the consummation of the Transactions, (ii) the grant or affirmation by any Loan Party of the Liens granted by it pursuant to the Collateral Documents, (iii) the perfection or maintenance of the Liens created under the Collateral Documents
(including the third priority nature thereof), or (iv) the exercise by any Agent or any Lender of its rights under the Loan Documents or the remedies in respect of the Collateral pursuant to the Collateral Documents, except for the authorizations,
approvals, actions, notices and filings listed on Schedule 4.01(d) hereto, all of which have been duly obtained, taken, given or made and are in full force and effect except (A) as set forth in the Loan Documents or (B) for such
authorizations, approvals, actions, notices and filings which would not have a Material Adverse Effect if not so made or obtained. All applicable waiting periods in connection with the Transactions have expired without any action having been taken
by any competent authority restraining, preventing or imposing materially adverse conditions upon the Transactions or the rights of the Loan Parties or their Subsidiaries freely to transfer or otherwise dispose of, or to create any Lien on, any
properties now owned or hereafter acquired by any of them. 
  
 (e) This Agreement has been, and each other Loan Document when delivered hereunder will have been, duly executed and delivered by each Loan 

  

 40 

 
Party thereto. This Agreement is, and each other Loan Document when delivered hereunder will be, the legal, valid and binding obligation of each Loan Party
thereto, enforceable against such Loan Party in accordance with its terms. 
  
 (f) There is no action, suit, investigation, litigation or proceeding affecting any Loan Party or any of its Subsidiaries, including any Environmental Action, pending or, to any Loan Party’s knowledge, threatened
before any court, governmental agency or arbitrator that (i) would, alone or when considered in conjunction with any other actions, suits, investigation, litigation or proceeding affecting any Loan Party, be reasonably likely to have a Material
Adverse Effect other than the Disclosed Litigation or (ii) purports to affect the legality, validity or enforceability of any Loan Document or the consummation of Transactions, and there has been no material adverse change in the status, or
financial effect on any Loan Party or any of its Subsidiaries, of or as a result of the Disclosed Litigation from that described on Schedule 4.01(f) hereto. 
  
 (g) The (i) unaudited Consolidated balance sheet of the Loan Parties as at the nine (9) months ended
September 30, 2004 and (ii) the unaudited related Consolidated statement of income and Consolidated statement of cash flows of the Loan Parties for the nine (9) months then ended, duly certified by the Chief Financial Officer of the Parent, copies
of which have been furnished to the Agents and each Lender, fairly present the Consolidated financial condition of the Loan Parties, as the case may be, as at such date and the Consolidated results of operations of the Parent and its Subsidiaries
for the period ended on such date, all in accordance with GAAP applied on a consistent basis, and since December 31, 2004 there has been no Material Adverse Change. 
  
 (h) Intentionally omitted. 
  
 (i) The Consolidated balance sheets, income statements and cash flows statements of the Loan Parties
delivered to the Lenders pursuant to Section 5.03(e) were or will be, and the unaudited pro forma financial information about the Loan Parties delivered to the Lenders in the ITC^DeltaCom 2005-2006 Business Plan, dated March 9, 2005, was,
prepared in good faith on the basis of the assumptions stated therein, which assumptions were or will be fair in light of the conditions existing at the time of delivery of such information, and represented or will represent, at the time of
delivery, the Loan Parties’ best estimate of the future financial performance of the Loan Parties. 
  
 (j) No information, exhibit or report furnished by or on behalf of any Loan Party to any Agent or any Lender in connection with the
negotiation of the Loan Documents or pursuant to the terms of the Loan Documents contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements made therein not misleading. 
  
 (k) The Borrower is not engaged in the business of extending
credit for the purpose of purchasing or carrying Margin Stock, and no proceeds of any 

  

 41 

 
Advance will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock.

  
 (l) Neither any Loan Party nor any of its
Subsidiaries is an “investment company,” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such terms are defined in the Investment Company Act
of 1940, as amended. Neither the making of any Advances, nor the application of the proceeds or repayment thereof by the Borrower, nor the consummation of the other Transactions, will violate any provision of such Act or any rule, regulation or
order of the SEC thereunder. 
  
 (m) The
Collateral Documents create a valid security interest in the Collateral, securing the payment of the Secured Obligations, and at such time as all filings delivered to the Collateral Agent on or before the Effective Date have been duly filed in
accordance with the provisions of the Security Agreement, such security interest will be perfected. The Loan Parties are the legal and beneficial owners of the Collateral free and clear of any Lien, except for the Liens and security interests
created or permitted under the Loan Documents. 
  
 (n) (i)Set forth on Schedule 4.01(n) hereto is a complete and accurate list of all Plans, Multiemployer Plans and Welfare Plans. 
  
 (ii) No ERISA Event (i) has occurred and is outstanding or (ii) to the Loan Parties’ knowledge, is reasonably expected to occur, in
each case with respect to any Plan. 
  
 (iii)
Schedule B (Actuarial Information) to the most recent annual report (Form 5500 Series) for each Plan, copies of which have been filed with the Internal Revenue Service and furnished to the Lenders, is complete and accurate and fairly presents the
funding status of such Plan, and since the date of such Schedule B there has been no material adverse change in such funding status. 
  
 (iv) Neither any Loan Party nor any ERISA Affiliate has incurred or, to the Loan Parties’ knowledge, is reasonably expected to incur
any Withdrawal Liability exceeding $1,000,000 to any Multiemployer Plan. 
  
 (v) Neither any Loan Party nor any ERISA Affiliate has been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or has been terminated, within the meaning of Title IV of
ERISA, and no such Multiemployer Plan, to the Borrower’s knowledge, is reasonably expected to be in reorganization or to be terminated, within the meaning of Title IV of ERISA. 
  
 (o) (i) The operations and properties of each Loan Party and each of its Subsidiaries comply in all material
respects with all applicable Environmental Laws and Environmental Permits, all past non-compliance with such 

  

 42 

 
Environmental Laws and Environmental Permits has been resolved without ongoing obligations or costs, and no circumstances exist that could (A) form the basis
of an Environmental Action against any Loan Party or any of its Subsidiaries or any of their properties that could have a Material Adverse Effect or (B) cause any such property to be subject to any restrictions on ownership, occupancy, use or
transferability under any Environmental Law. 
  
 (ii) None of the properties currently or formerly owned or operated by any Loan Party or any of its Subsidiaries is listed or proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list or, to the best of
its knowledge, is adjacent to any such property; there are no and or, to the best of its knowledge, never have been any underground or aboveground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous
Materials are being or have been treated, stored or disposed on any property currently owned or, to the best of its knowledge, operated by any Loan Party or any of its Subsidiaries or, to the best of its knowledge, on any property formerly owned or
operated by any Loan Party or any of its Subsidiaries; there is no asbestos or asbestos-containing material on any property currently owned or, to the best of its knowledge, operated by any Loan Party or any of its Subsidiaries; and Hazardous
Materials have not been released, discharged or disposed of on any property currently or formerly owned or operated by any Loan Party or any of its Subsidiaries except as specifically permitted under Environmental Laws. 
  
 (iii) Neither any Loan Party nor any of its Subsidiaries is
undertaking, or has completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened release, discharge or disposal of
Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any governmental or regulatory authority or the requirements of any Environmental Law; and all Hazardous Materials generated, used, treated,
handled or stored at, or transported to or from, any property currently or formerly owned or operated by any Loan Party or any of its Subsidiaries have been disposed of in a manner not reasonably expected to result in material liability to any Loan
Party or any of its Subsidiaries. 
  
 (p)
(i)Except as set forth in Schedule 4.01(p) hereto, neither any Loan Party nor any of its Subsidiaries is party to any tax sharing agreement. 
  
 (ii) (x) all tax returns and all material statements, reports and forms (including estimated tax or information returns) (collectively,
the “Tax Returns”) required to be filed with any taxing authority by, or with respect to, each Loan Party and its Subsidiaries have been timely filed in accordance with all applicable laws and, as of time of filing, each Tax Return
was accurate and complete and correctly reflected the facts 

  

 43 

 
regarding income, business, assets, operations and the status of each Loan Party and its Subsidiaries; (y) each Loan Party and its Subsidiaries has timely
paid or made adequate provision for payment of all taxes (other than the Permitted Deferred Taxes) that are shown as due and payable on Tax Returns that have been so filed or that are otherwise required to be paid, including without limitation,
assessments, interest and penalties (other than taxes which are being contested in good faith and for which adequate reserves are reflected on the financial statements delivered hereunder); and (z) each Loan Party and its Subsidiaries have made
adequate provision for all taxes payable by such Loan Party and its Subsidiaries for which no Tax Return has yet been filed or which are otherwise due. 
  
 (iii) Set forth on Part I of Schedule 4.01(p) hereto is a complete and accurate list, as of the date hereof, of each taxable
year of each Loan Party and each of its Subsidiaries and Affiliates for which Federal income tax returns have been filed and for which the expiration of the applicable statute of limitations for assessment or collection has not occurred by reason of
extension or otherwise (an “Open Year”). 
  
 (iv) The aggregate unpaid amount, as of the date hereof, of adjustments to the Federal income tax liability of each Loan Party and each of its Subsidiaries and Affiliates proposed by the Internal Revenue Service with
respect to Open Years does not exceed $35,000. Set forth on Part II of Schedule 4.01(p) hereto is a complete and accurate description, as of the date hereof, of each such item that separately, for all such Open Years, together with
applicable interest and penalties, exceeds $100,000. To the Borrower’s knowledge, no issues have been raised by the Internal Revenue Service in respect of Open Years that, in the aggregate, could be reasonably likely to have a Material Adverse
Effect. 
  
 (v) Except as set forth in
Schedule 4.01(p) hereto, the aggregate unpaid amount, as of the date hereof, of adjustments to the state, local and foreign tax liability of each Loan Party and its Subsidiaries and Affiliates proposed by all state, local and foreign taxing
authorities (other than amounts arising from adjustments to Federal income tax returns) does not exceed $35,000. No issues have been raised by such taxing authorities that, in the aggregate, could be reasonably likely to have a Material Adverse
Effect. 
  
 (q) Neither the business nor the
properties of any Loan Party or any of its Subsidiaries have been affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of the public enemy or other casualty
(whether or not covered by insurance) that could be reasonably likely to have a Material Adverse Effect. 
  

 44 

 (r) Set forth on Schedule 4.01(r) hereto is a complete and accurate list of all
Surviving Debt, showing as of the date hereof the obligor and the principal amount outstanding thereunder, the maturity date thereof and the amortization schedule therefor. 
  
 (s) Set forth on Schedule 4.01(s) hereto is a complete and accurate list of all Liens on the property
or assets of any Loan Party or any of its Subsidiaries, showing as of the date hereof the lienholder thereof, the principal amount of the obligations secured thereby and the property or assets of such Loan Party or such Subsidiary subject thereto.

  
 (t) Set forth on Schedule 4.01(t)
hereto is a complete and accurate list of all real property owned by any Loan Party or any of its Subsidiaries, showing as of the date hereof the street address, county or other relevant jurisdiction, state, record owner and gross book and fair
value thereof. Each Loan Party or such Subsidiary has good, marketable and insurable fee simple title to such real property, free and clear of all Liens, other than Liens created or permitted by the Loan Documents. 
  
 (u) Set forth on Schedule 4.01(u) hereto is a
complete and accurate list of all leases of real property under which any Loan Party or any of its Subsidiaries is the lessee, showing as of the date hereof the street address, county or other relevant jurisdiction, state, lessor, lessee, expiration
date and annual rental cost thereof. Each such lease is the legal, valid and binding obligation of the lessor thereof, enforceable in accordance with its terms. 
  
 (v) Set forth on Schedule 4.01(v) hereto is a complete and accurate list of all Investments held by
any Loan Party or any of its Subsidiaries on the date hereof, showing as of the date hereof the amount, obligor or issuer and maturity, if any, thereof. 
  
 (w) Set forth on Schedule 4.01(w) hereto is a complete and accurate list of all patents, trademarks, trade names, service marks and
copyrights, and all applications therefor and licenses thereof, of each Loan Party or any of its Subsidiaries, showing as of the date hereof the jurisdiction in which registered, the registration number, the date of registration and the expiration
date. 
  
 (x) Set forth on Schedule
4.01(x) hereto is a complete and accurate list of all Material Contracts of each Loan Party and its Subsidiaries involving aggregate consideration payable to or by such Loan Party or its Subsidiaries of $20,000,000 or more in any year. Each such
Material Contract, together with each other Material Contract shows as of the date hereof the parties, subject matter and term thereof. Each such Material Contract has been duly authorized, executed and delivered by all parties thereto, has not been
amended or otherwise modified, is in full force and effect and is binding upon and enforceable against all parties thereto in accordance with its terms, and except as set forth on 

  

 45 

 
Schedule 4.01(x) hereto, there exists no default under any Material Contract by any party thereto. 
  
 (y) The New Warrants have been duly authorized by the Parent
and, when issued and delivered in accordance with the terms of this Agreement and the New Warrant Documents, will be validly issued and outstanding, fully paid and nonassessable, and free and clear of any Liens, other than Liens arising under the
Governance Agreement. The shares of Common Stock issuable upon exercise or conversion of the New Warrants will, when issued, be validly issued and outstanding, fully paid and nonassessable, and free and clear of any Liens, other than Liens arising
under the Governance Agreement. The issuance of the New Warrants and the New Warrant Shares will not be subject to preemptive or other similar rights. 
  
 (z) The New Warrant Documents and the New Warrants constitute valid and binding agreements of the Parent, in each case enforceable against
the Parent in accordance with their respective 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. 
  
 (aa) Neither the Parent
nor any Person acting on its behalf has taken or will take any action (including, without limitation, any offering of any securities of the Parent under circumstances which would require, under the Securities Act (the integration of such offering
with the offering and sale of the New Warrants) which might subject the offering, issuance or sale of the New Warrants to the registration requirements of Section 5 of the Securities Act. 
  
 (bb) The authorized capital stock of the Parent consists of
350,000,000 shares of Common Stock, par value $0.01 per share, and 10,000,000 shares of preferred stock, par value $0.01 per share. As of March 17, 2005, there were outstanding 55,084,955 shares of Common Stock of the Parent, 179,311 shares of
Series A Preferred Stock and 539,078 shares of Series B Preferred Stock. As of March 17, 2005, there were outstanding under the ITC^DeltaCom, Inc. Stock Incentive Plan (i) stock options to purchase an aggregate of 2,694,886 shares of Common Stock of
the Parent, of which stock options to purchase an aggregate of 1,927,635 shares of Common Stock of the Parent were exercisable, and (ii) restricted stock units for 1,653,000 shares of Common Stock of the Parent, of which restricted stock units for
791,165 shares of Common Stock were vested. As of March 17, 2005, there were outstanding, currently exercisable warrants to purchase an aggregate of 4,020,000 shares of Common Stock of the Parent. All outstanding shares of capital stock of the
Parent have been, and all shares of Common Stock of the Parent that may be issued pursuant to the ITC^DeltaCom, Inc. Stock Incentive Plan will be, when issued in accordance with the terms of such plan, duly authorized and validly issued and fully
paid and nonassessable. No Subsidiary of the Parent owns any shares of capital stock of the Parent. 
  

 46 

 (cc) The information statement (the “Information Statement”) of the
Parent required to be filed with the SEC pursuant to Regulation 14C under the Exchange Act, in connection with the issuance of the New Warrants and New Warrant Shares, and any amendments or supplements thereto, will, when filed, comply as to form in
all material respects with the applicable requirements of the Exchange Act. At the time the Information Statement or any amendment or supplement thereto is first mailed to stockholders of the Parent, the Information Statement, as supplemented or
amended, if applicable, will not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading.
The representations and warranties contained in this 4.01(cc) will not apply to statements or omissions included in the Information Statement based upon information furnished to the Parent in writing by the Initial Lenders specifically for
use therein. 
  
 ARTICLE V 
  
 COVENANTS 
  
 Section 5.01. Affirmative Covenants. So long as any Advance or any other Obligation of any Loan Party under any Loan
Document shall remain unpaid or any Lender shall have any Commitment hereunder, each Loan Party shall: 
  
 (a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to comply, in all material respects, with all applicable
laws, rules, regulations and orders, such compliance to include, without limitation, compliance with ERISA, the Racketeer Influenced and Corrupt Organizations Chapter of the Organized Crime Control Act of 1970, the rules and regulations of the FCC
and each applicable PUC. 
  
 (b) Payment of
Taxes, Etc. Subject to Section 5.01(n)(ii), pay and discharge, and cause each of its Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all taxes, assessments and governmental charges or levies imposed upon it
or upon its property and (ii) all lawful claims that, if unpaid, might by law become a Lien upon its property; provided, however, that neither the Borrower nor any of its Subsidiaries shall be required to pay or discharge any such tax,
assessment, charge, levy or claim that is being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained, unless and until any Lien resulting therefrom attaches to its property and becomes
enforceable. 
  
 (c) Compliance with
Environmental Laws. Comply, and cause each of its Subsidiaries and all lessees and other Persons operating or occupying its properties to comply, in all material respects, with all applicable Environmental Laws and Environmental Permits; obtain
and renew and cause each of its Subsidiaries to obtain and renew all Environmental Permits necessary for its 

  

 47 

 
operations and properties; and conduct, and cause each of its Subsidiaries to conduct, any investigation, study, sampling and testing, and undertake any
cleanup, removal, remedial or other action necessary to remove and clean up all Hazardous Materials from any of its properties, to the extent required by and in accordance with all Environmental Laws; provided, however, that neither
the Borrower nor any of its Subsidiaries shall be required to undertake any such cleanup, removal, remedial or other action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate
reserves are being maintained with respect to such circumstances. 
  
 (d) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries to maintain, insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as is
usually carried by companies engaged in similar businesses and owning similar properties in the same general areas in which the Parent or such Subsidiary operates. 
  
 (e) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause each of its
Subsidiaries to preserve and maintain, its existence, legal structure, legal name, rights (charter and statutory), permits, licenses, approvals, privileges and franchises; provided, however, that the Parent and its Subsidiaries may
consummate any merger or consolidation permitted under Section 5.02(d) and provided further that neither the Parent nor any of its Subsidiaries shall be required to preserve any right, permit, license, approval, privilege or
franchise if the Board of Directors of the Borrower or such Subsidiary shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Parent or such Subsidiary, as the case may be, and that the loss
thereof is not disadvantageous in any material respect to the Parent, such Subsidiary or the Lenders. 
  
 (f) Visitation Rights. At any reasonable time upon prior reasonable notice and from time to time, permit any of the Agents or any
of the Lenders, or any agents or representatives thereof, to examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Parent and any of its Subsidiaries, and to discuss the affairs, finances
and accounts of the Parent and any of its Subsidiaries with any of their officers or directors and with their independent certified public accountants. 
  
 (g) Keeping of Books. Keep, and cause each of its Subsidiaries to keep, proper books of record and account, in which full and
correct entries shall be made of all financial transactions and the assets and business of the Parent and each such Subsidiary in accordance with generally accepted accounting principles in effect from time to time. 
  
 (h) Maintenance of Properties, Etc. Maintain and
preserve, and cause each of its Subsidiaries to maintain and preserve, all of its properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted. 
  

 48 

 (i) Transactions with Affiliates. Conduct, and cause each of its Subsidiaries to
conduct, all transactions otherwise permitted under the Loan Documents with any of their Affiliates on terms that are fair and reasonable and no less favorable to the Parent or such Subsidiary than it would obtain in a comparable arm’s-length
transaction with a Person not an Affiliate. 
  
 (j) Covenant to Guarantee Obligations and Give Security. Upon (x) the request of the Collateral Agent (y) the formation or acquisition of any new direct or indirect Subsidiaries by any Loan Party or (z) the acquisition of any
property acquired for a purchase price in excess of $1,000,000 in any Fiscal Year and $5,000,000 in the aggregate over the term of this Agreement by any Loan Party, and such property, in the judgment of the Collateral Agent, shall not already be
subject to a perfected third priority security interest in favor of the Collateral Agent for the benefit of the Secured Parties, then the Loan Parties shall, in each case at the Loan Parties’ expense: 
  
 (i) Intentionally omitted. 
  
 (ii) within 30 days after such request, formation or
acquisition (or such longer period as the Administrative Agent may permit), furnish to the Collateral Agent a description of the real and personal properties of the Loan Parties and their respective Subsidiaries in detail satisfactory to the
Collateral Agent, 
  
 (iii) within 45 days after
such request, formation or acquisition (or such longer period as the Administrative Agent may permit), duly execute and deliver, and cause each such Subsidiary and each direct and indirect parent of such Subsidiary (if it has not already done so) to
duly execute and deliver, to the Collateral Agent mortgages, pledges, assignments, security agreement supplements and other security agreements, as specified by and in form and substance satisfactory to the Collateral Agent, securing payment of all
the Obligations of the applicable Loan Party, such Subsidiary or such parent, as the case may be, under the Loan Documents and constituting Liens on all such properties, 
  
 (iv) within 45 days after such request, formation or acquisition (or such longer period as the
Administrative Agent may permit), take, and cause such Subsidiary or such parent to take, whatever action (including, without limitation, the recording of mortgages, the filing of Uniform Commercial Code financing statements, the giving of notices
and the endorsement of notices on title documents) may be necessary or advisable in the opinion of the Collateral Agent to vest in the Collateral Agent (or in any representative of the Collateral Agent designated by it) valid and subsisting Liens on
the properties purported to be subject to the mortgages, pledges, assignments, security agreement supplements and security agreements delivered pursuant to this Section 5.01(j), enforceable against all third parties in accordance with their
terms, 
  

 49 

 (v) within 60 days after such request, formation or acquisition (or such longer period as
the Administrative Agent may permit), deliver to the Collateral Agent, upon the request of the Collateral Agent in its sole discretion, a signed copy of a favorable opinion, addressed to the Collateral Agent and the other Secured Parties, of counsel
for the Loan Parties reasonably acceptable to the Collateral Agent as to the matters contained in clauses (i), (iii) and (iv) above, as to such guaranties, guaranty supplements, mortgages, pledges, assignments, security
agreement supplements and security agreements being legal, valid and binding obligations of each Loan Party thereto enforceable in accordance with their terms, as to the matters contained in clause (iv) above, as to such recordings, filings,
notices, endorsements and other actions being sufficient to create valid perfected Liens on such properties, and as to such other matters as the Collateral Agent may reasonably request, 
  
 (vi) within 60 days after such request, formation or acquisition (or such longer period as the
Administrative Agent may permit), deliver, upon the request of the Collateral Agent in its sole discretion, to the Collateral Agent with respect to each parcel of real property owned by the entity that is the subject of such request, formation or
acquisition such title reports, surveys and engineering, soils and other reports, and environmental assessment reports, as may be prepared in the ordinary course of business by such entity; provided, however, that to the extent that
any Loan Party or any of its Subsidiaries shall have otherwise received any of the foregoing items with respect to such real property, such items shall, promptly after the receipt thereof, be delivered to the Collateral Agent, 
  
 (vii) upon the occurrence and during the continuance of a
Default, promptly cause to be deposited any and all cash dividends paid or payable to it or any of its Subsidiaries from any of its Subsidiaries from time to time into the Collateral Account, and with respect to all other dividends paid or payable
to it or any of its Subsidiaries from time to time, promptly execute and deliver, or cause such Subsidiary to promptly execute and deliver, as the case may be, any and all further instruments and take or cause such Subsidiary to take, as the case
may be, all such other action as the Collateral Agent may deem necessary or desirable in order to obtain and maintain from and after the time such dividend is paid or payable a perfected, third priority lien on and security interest in such
dividends, and 
  
 (viii) at any time and from
time to time, promptly execute and deliver any and all further instruments and documents and take all such other action as the Collateral Agent may deem reasonably necessary or desirable in obtaining the full benefits of, or in perfecting and
preserving the Liens of, such guaranties, mortgages, pledges, assignments, security agreement supplements and security agreements. 
  

 50 

 (k) Further Assurances. (i) Promptly upon request by any Agent, or any Lender
through the Administrative Agent, correct, and cause each of its Subsidiaries promptly to correct, any material defect or error that may be discovered in any Loan Document or in the execution, acknowledgment, filing or recordation thereof, and

  
 (ii) Promptly upon request by any Agent, or
any Lender through the Administrative Agent, do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, conveyances, pledge agreements, mortgages, deeds of trust, trust deeds,
assignments, financing statements and continuations thereof, termination statements, notices of assignment, transfers, certificates, assurances and other instruments as any Agent, or any Lender through the Administrative Agent, may reasonably
require from time to time in order to (A) carry out more effectively the purposes of the Loan Documents, (B) to the fullest extent permitted by applicable law, subject any Loan Party’s or any of its Subsidiaries’ properties, assets, rights
or interests to the Liens now or hereafter intended to be covered by any of the Collateral Documents, (C) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created
thereunder and (D) assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under any Loan Document or under
any other instrument executed in connection with any Loan Document to which any Loan Party or any of its Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do so. Notwithstanding the foregoing, no Loan Party shall be
required, solely pursuant to the provisions of this Section 5.01(k), to encumber any assets which were not otherwise required to be encumbered on the Effective Date or pursuant to Section 5.01(j). 
  
 (l) Compliance with Terms of Leaseholds. Make all
payments and otherwise perform all obligations in respect of all leases of real property to which the Borrower or any of its Subsidiaries is a party, keep such leases in full force and effect and not allow such leases to lapse or be terminated or
any rights to renew such leases to be forfeited or cancelled, notify the Administrative Agent of any default by any party with respect to such leases and cooperate with the Administrative Agent in all respects to cure any such default, and cause
each of its Subsidiaries to do so, except in each of the foregoing cases where the failure to do so would not have a Material Adverse Effect. 
  
 (m) Performance of Material Contracts. Perform and observe, and cause each of its Subsidiaries to perform and observe, all the
terms and provisions of each Material Contract to be performed or observed by it, maintain each such Material Contract in full force and effect until the cancellation or termination thereof in accordance with its terms, enforce each such Material
Contract in accordance with its terms, take all such action to such end as may be from time to 

  

 51 

 
time reasonably requested by the Administrative Agent (or by the Administrative Agent at the request of the Required Lenders) and, upon request of the
Administrative Agent, make to each other party to each such Material Contract such demands and requests for information and reports or for action as any Loan Party or any of its Subsidiaries is entitled to make under such Material Contract, and
cause each of its Subsidiaries to do so, except in each of the foregoing cases where the failure to do so would not have a Material Adverse Effect. 
  
 (n) Conditions Subsequent. (i) With respect to (A) any newly-acquired Unencumbered Parcel with a gross book value in excess of
$1,000,000, (B) real property that is subject to a mortgage for the benefit of the First Lien Collateral Agent as of the Effective Date, or (C) any Unencumbered Parcel owned by any Loan Party as of the Effective Date in which any such Loan Party has
invested such that the gross book value of the land and any buildings thereon after the investment is completed is greater than $1,000,000, the Loan Parties shall deliver to the Administrative Agent, within 60 days after the closing of any such
acquisition in clause (A) above or of any such investment in clause (C) above and within 30 days of the Effective Date in the case of clause (B) (or such longer period as the Administrative Agent may agree) with respect to such
property, the following, each dated such day (unless otherwise specified) in form and substance substantially similar to the correlative First Lien Loan Documents or the Second Lien Loan Documents but reflecting the third priority nature of the
Lien: deeds of trust, trust deeds, mortgages, leasehold mortgages and leasehold deeds of trust in form reasonably satisfactory to the Administrative Agent (together with the Assignments of Leases and Rents referred to therein and each other mortgage
delivered pursuant to Section 5.01(j), in each case as amended, the “Mortgages”), duly executed by the appropriate Loan Party, together with: 
  
 (A) evidence that counterparts of the Mortgages have been duly recorded in all filing or recording offices
that the Administrative Agent may reasonably deem necessary or desirable in order to create a valid third priority and subsisting Lien on the property described therein in favor of the Collateral Agent for the benefit of the Secured Parties and that
all filing and recording taxes and fees have been paid, 
  
 (B) fully paid American Land Title Association Lender’s Extended Coverage title insurance policies (the “Mortgage Policies”) in form and substance, with endorsements and in amount reasonably
acceptable to the Administrative Agent, issued, coinsured and reinsured by title insurers acceptable to the Administrative Agent, insuring the Mortgages to be valid third priority and subsisting Liens on the property described therein, free and
clear of all defects (including, but not limited to, mechanics’ and materialmen’s Liens) and encumbrances, excepting only Permitted Encumbrances, Liens securing the First Lien Facilities and Liens securing the Second Lien Facility, and
providing for 

  

 52 

	 	 
such other affirmative insurance (including endorsements for future advances under the Loan Documents and for mechanics’ and materialmen’s Liens)
and such coinsurance and direct access reinsurance as the Administrative Agent may reasonably deem necessary or desirable, 

  
 (C) American Land Title Association form surveys, certified to the Administrative Agent and the issuer of the Mortgage Policies in a
manner reasonably satisfactory to the Administrative Agent by a land surveyor duly registered and licensed in the States in which the property described in such surveys is located and acceptable to the Administrative Agent, showing all buildings and
other improvements, any off-site improvements, the location of any easements, parking spaces, rights of way, building set-back lines and other dimensional regulations and the absence of encroachments, either by such improvements or on to such
property, and other defects, other than encroachments and other defects reasonably acceptable to the Administrative Agent, 
  
 (D) the Assignments of Leases and Rents referred to in the Mortgages, duly executed by the appropriate Loan Party, 
  
 (E) such consents and agreements of lessors and other third
parties, and such estoppel letters and other confirmations, as the Administrative Agent may reasonably deem necessary or desirable, 
  
 (F) evidence of the insurance required by the terms of the Mortgages, and 
  
 (G) evidence that all other action that the Administrative Agent may deem reasonably necessary or desirable
in order to create valid third priority and subsisting Liens on the property described in the Mortgages (subject to Liens securing the First Lien Facilities and Liens securing the Second Lien Facility) has been taken. 
  
 (ii) Within thirty (30) days of the Effective Date, the
Borrower shall pay, or cause to be paid, the Permitted Deferred Taxes in full 
  
 (iii) Within thirty (30) days of the Effective Date, the Borrower shall dissolve each of the Subsidiaries listed on Schedule IV hereto or shall comply the provisions of Section 5.01(j) as if such
Subsidiary were a newly formed Subsidiary. 
  
 (iv) Within thirty (30) days of the Effective Date, the Loan Parties shall have entered into new or amended account control 

  

 53 

	 	 
agreements, in form and substance reasonably satisfactory to the First Lien Collateral Agent, the Second Lien Collateral Agent and the Collateral Agent, as
the Collateral Agent may deem necessary or desirable in order to ensure the priority and perfection of the Collateral Agent’s security interests in the deposit, securities and other bank accounts of the Loan Parties.

  
 (v) BTI and BTI, Inc. shall
use commercially reasonable efforts to enter into an amendment to the promissory note referred to in clause (d) of the definition of “Assumed BTI Debt”, which amendment shall extend the maturity date of such note from April 30, 2006
to a date which occurs on or after October 31, 2006. 
  
 (vi) Within (A) ten (10) days of the Effective Date, the Loan Parties shall deliver to the Administrative Agent a certificate of the Secretary of State in each of the jurisdictions and with respect to each Loan Party described on
Schedule 4.01(a)(ii) stating that each Loan Party is duly qualified and in good standing as a foreign corporation in the jurisdictions applicable to each Loan Party and (B) twenty (20) days of the Effective Date, each Loan Party shall have
obtained all governmental licenses, permits and other approvals described as pending on Schedule 4.01(a)(iii). 
  
 (vii) Within ten (10) days of the Effective Date, the Loan Parties shall deliver to the Administrative Agent favorable opinions, in form
and substance satisfactory to the Administrative Agent, of counsel to those Subsidiaries of the Parent organized in Alabama, North Carolina and Virginia. 
  
 (viii) Within three (3) Business Days of the Effective Date, the Borrower shall deliver to the Administrative Agent copies of the audited
financial statements of the Loan Parties without any “going-concern” or like qualification to the opinion set forth therein. 
  
 (ix) (i) As promptly as reasonably practicable after the date hereof, the Parent will prepare and file with the SEC, will use its best
efforts to have cleared by the SEC and will thereafter mail to its stockholders as promptly as reasonably practicable the Information Statement and all other related materials, if any, (ii) WCAS and the Parent will cooperate with each other (A) in
connection with the preparation of the Information Statement, (B) in determining whether any action by or in respect of, or filing with, any governmental body, agency, official, or authority is required, or any actions, consents, approvals or
waivers are required to be obtained from parties to any material contracts, in connection with the consummation of the transactions contemplated by this Agreement or the New Warrant Documents and (iii) in taking such actions or making any such
filings, furnishing information required in 

  

 54 

	 	 
connection therewith or with the Information Statement and seeking timely to obtain any such actions, consents, approvals or waivers. WCAS and its counsel
shall be given a reasonable opportunity to review and comment on the Information Statement each time before such document (or any amendment thereto) is filed with the SEC, and reasonable and good faith consideration shall be given to any comments
made by WCAS and its counsel. The Parent shall provide WCAS and its counsel with any comments or other communications, whether written or oral, that the Parent or its counsel may receive from time to time from the SEC or its staff with respect to
the Information Statement, promptly after receipt of those comments or other communications and a reasonable opportunity to participate in the response to those comments and to provide comments on that response (to which reasonable and good faith
consideration shall be given), including by participating in any discussions or meetings with the staff of the SEC. 

  
 (x) The Company shall at all times reserve and keep available, free from preemptive rights, out of its authorized but unissued Common
Stock and/or its authorized and issued Common Stock held in its treasury, for the purpose of enabling it to satisfy any obligation to issue Warrant Shares upon exercise or conversion of Warrants, the maximum number of shares of Common Stock which
may then be deliverable upon the exercise or conversion of all outstanding Warrants. All such shares, when issued upon such exercise or conversion, shall be validly issued, fully paid and non-assessable, free of all Liens and not subject to
preemptive rights.; 
  
 (xi) As promptly as
reasonably practicable after the Effective Date, the Parent shall use its best efforts to cause the New Warrant Shares to be approved for quotation on the Nasdaq National Market, subject to official notice of issuance. 
  
 Section 5.02. Negative Covenants. So long as any Advance or any other
Obligation of any Loan Party under any Loan Document shall remain unpaid or any Lender shall have any Commitment hereunder, no Loan Party shall, at any time: 
  

(a) Liens, Etc. Create, incur, assume or suffer to exist, or permit any of its Subsidiaries to create, incur, assume or suffer
to exist, any Lien on or with respect to any of its properties of any character (including, without limitation, accounts) whether now owned or hereafter acquired, or sign, file or authorize the filing or suffer to exist, or permit any of its
Subsidiaries to sign, file, or authorize the filing or suffer to exist, under the Uniform Commercial Code of any jurisdiction, a financing statement that names the Parent or any of its Subsidiaries as debtor, or sign or suffer to exist, or permit
any of its Subsidiaries to sign or suffer to exist, any security agreement authorizing any secured party thereunder to file such financing statement, or assign, or permit any of its Subsidiaries to assign, any accounts or other right to receive
income, except: 
  
 (i) Liens created under the
Loan Documents, the First Lien Loan Documents and the Second Lien Loan Documents; 
  

 55 

 (ii) Permitted Liens; 
  
 (iii) Liens existing on the date hereof and described on Schedule 4.01(r) hereto; 
  
 (iv) Liens arising in connection with Capitalized Leases
permitted under Section 5.02(b)(ii); provided that no such Lien shall extend to or cover any Collateral or assets other than the assets subject to such Capitalized Leases; 
  
 (v) Liens securing Permitted Refinancings, Receivables Financings, Replacement Financings and Existing Debt
Refinancings to the extent permitted under Section 5.02(b), provided that if the Debt referred to in clauses (c) and (d) of the definition of “Assumed BTI Debt” is the subject of an Existing Debt Refinancing,
such Debt shall not be secured by any Lien; 
  
 (vi) (A) deposits of cash, checks or Cash Equivalents to secure Ordinary Course Obligations, (B) letters of credit issued to secure Ordinary Course Obligations or (C) surety, appeal, performance and return-of-money bonds and bonds of a
similar nature issued to secure or in respect of Ordinary Course Obligations, in an aggregate amount not to exceed the amount set forth in Section 5.02(b)(xii); 
  
 (vii) Liens securing Subordinated Debt permitted under Section 5.02(b)(xi) which are subordinated and
junior in priority to the Liens securing the First Lien Loan Documents and the Second Lien Loan Documents on terms and conditions acceptable to the First Lien Agents, the Required Lenders under the First Lien Credit Agreement, the Second Lien Agents
and the Required Lenders under the Second Lien Credit Agreement and substantially similar to those set forth in the Third Lien Intercreditor and Subordination Agreement; 
  
 (b) Debt. Incur or permit any of its Subsidiaries to Incur any Debt other than: 
  
 (i) Debt under the Loan Documents, the First Lien Loan
Documents and the Second Lien Loan Documents; 
  
 (ii) Capitalized Leases (other than Surviving Debt) not to exceed in the aggregate $7,500,000; 
  
 (iii) the Surviving Debt; 
  

 56 

 (iv) unsecured Debt of the Parent (“Permitted Parent Debt”) that (A) is
not subject to any guarantee by any Subsidiary of the Parent, (B) will not mature prior to the date that is ninety-one (91) days after the Termination Date, (C) has no scheduled amortization or payments of principal, (D) does not permit any payments
in cash of interest or other amounts in respect of the principal thereof for at least five (5) years from the date of the issuance or incurrence thereof, and (E) has mandatory prepayment, repurchase or redemption, covenant, default and remedy
provisions customary for senior discount notes of an issuer that is the parent of a borrower under senior secured credit facilities, taken as a whole; provided, any such Debt shall constitute Permitted Parent Debt only if both before and after
giving effect to the issuance or incurrence thereof, no Default or Event of Default shall have occurred and be continuing, it being understood that any capitalized or paid-in-kind interest or accreted principal on such Debt shall not constitute an
issuance or incurrence of Debt for purposes of this proviso; 
  
 (v) Debt of the Borrower under Hedge Agreements; provided that such agreements (A) are designed solely to protect the Loan Parties against fluctuations in foreign currency exchange rates or interest rates and
(B) do not increase the Debt of the obligor thereunder outstanding at any time other than as a result of fluctuations in foreign currency exchange rates or interest rates or by reason of fees, indemnities and compensation payable thereunder;

  
 (vi) Debt Incurred in connection with the
refinancing of any Debt permitted under Section 5.02(b)(i) or (ii) or clauses (c) or (d) of the definition of Assumed BTI Debt (other than the Debt under the Loan Documents, Permitted Refinancings, Replacement Refinancings or
Receivables Refinancings), provided that the Debt Incurred in connection with such refinancing (A) has a scheduled maturity date that is on or after the scheduled maturity date of the Debt being refinanced, (B) has a weighted average life to
maturity that is equal to or longer than the remaining weighted average life to maturity of the Debt being refinanced, determined immediately prior to giving effect to such refinancing, (C) does not include any provisions that may require mandatory
prepayment of such Debt prior to its scheduled maturity, other than scheduled prepayments taken into consideration in determining compliance with clause (B) above and other provisions that are not materially more burdensome to the obligor thereunder
than any such provisions included in the Debt being refinanced, (D) is Incurred by the same Person that Incurred the Debt being refinanced and is not Guaranteed or secured by any Lien unless the Debt being refinanced was Guaranteed or secured by a
Lien (in which case such Debt shall not be Guaranteed by any Person that did not Guarantee the Debt being refinanced and shall not be secured by a Lien on any asset that did not secure the Debt being refinanced), (E) if the refinanced Debt was

  

 57 

 
subordinated to the Debt under the Loan Documents, such Debt is subordinated to the Debt under the Loan Documents on terms no less favorable to the Lenders
than the terms on which the Debt being refinanced was so subordinated, and (F) has an aggregate principal amount which is equal to the Debt being refinanced, provided that the Debt Incurred in connection with such refinancing may have an
aggregate principal amount which is less than the Debt being refinanced in the case of a refinancing of less than all of the Debt referred to in clauses (c) and (d) of the definition of “Assumed BTI Debt” (each refinancing undertaken in
accordance with this Section 5.02(b)(vi) shall be referred to herein as an “Existing Debt Refinancing”); 
  
 (vii) Permitted Refinancing; it being understood that the Loan Parties shall have the right to cause such Permitted Refinancing to be
secured and guaranteed in a manner and on terms that are identical in all material respects to the manner in which and the terms on which the Debt under the First Lien Loan Documents (and/or the Second Lien Loan Documents, as applicable) is secured
and guaranteed immediately prior to the consummation of such Permitted Refinancing. Effective as of the consummation of such Permitted Refinancing, the Permitted Refinancing lenders shall replace the lenders under the First Lien Loan Documents
(and/or the Second Lien Loan Documents, as applicable) as parties to the Third Lien Intercreditor and Subordination Agreement, provided, that (A) there shall be no changes to the provisions of the Third Lien Intercreditor and Subordination
Agreement that would adversely affect the rights and obligations thereunder of the Lenders and (B) the Permitted Refinancing documents shall not modify, or prohibit the Borrower from complying with, the provisions of their Agreement with respect to
the final maturity date of this Facility. 
  
 (viii) Receivables Financing; it being understood that (A) the Loan Parties shall have the right to cause such Receivable Financing to be secured by all Receivables of all of the Loan Parties, (B) effective as of the consummation of such
Receivables Financing, the Lenders shall release all Liens in their favor on all Receivables of all of the Loan Parties, it being understood that the Receivables Financing shall be secured by a Lien on all such Receivables that is senior in priority
to all other Liens thereon (subject to Permitted Liens), and that the Lenders shall not be entitled to any Lien on the Receivables, (C) effective as of the consummation of such Receivables Financing, the Receivables Financing lenders, the Lenders
and the Second Lien Lenders shall replace the Third Lien Intercreditor and Subordination Agreement with a mutually acceptable Intercreditor agreement pursuant to which such lenders, the Lenders and the Second Lien Lenders, among other things,
acknowledge that the Liens on the Receivables securing the Receivables Financing shall be senior in priority to all other Liens thereon (subject to Permitted Liens) and that the Liens on all other collateral of the Loan Parties shall be senior

  

 58 

 
in priority to all other Liens thereon (subject to Permitted Liens or as otherwise expressly permitted by the Loan Documents); provided, that the
documents evidencing the Receivables Refinancing shall not modify, or prohibit the Borrower from complying with, the provisions of this Agreement with respect to the final maturity date of this Facility or otherwise adversely affect the rights and
obligations of the Lenders under the Third Lien Intercreditor and Subordination Agreement; 
  
 (ix) Replacement Financing; it being understood that effective as of the consummation of such Replacement Financing, the Replacement
Financing lenders, the Second Lien Lenders, if not paid in full, the Lenders shall replace the Third Lien Intercreditor and Subordination Agreement with mutually acceptable intercreditor agreements pursuant to which such lenders, the Lenders and the
Second Lien Lenders, among other things, acknowledge that the Liens securing such Replacement Financing, the Second Lien Facility, and this Facility shall secure the Debt under such facilities and, if relevant, the Second Lien Facility, shall be
senior to the obligations under the Loan Documents on substantially similar terms as set forth in the Third Lien Intercreditor Agreement and that such Liens shall be senior in priority to all other Liens, subject to Permitted Liens; 
  
 (x) Debt of the type described in clause (j) of the
definition of “Debt” which is secured by a Permitted Lien, to the extent that such Debt is Incurred in the ordinary course of business and is not the subject of an enforcement, collection, execution, levy or foreclosure proceeding and is
not duplicative of Debt Incurred pursuant to Section 5.02(b)(xii); 
  
 (xi) Subordinated Debt of the Loan Parties outstanding at any time in an aggregate principal amount not to exceed $30,000,000, on terms and conditions no less favorable to the First Lien Lenders and the Second Lien
Lenders than under the Loan Documents, provided that (A) the maturity of such Subordinated Debt is at least 91 days following the final maturity date of the Second Lien Facility, (B) the Administrative Agent (as defined in the Second Lien
Credit Agreement) and the Required Lenders under the Second Lien Credit Agreement are reasonably satisfied that the Parent and its Subsidiaries shall be in compliance with the provisions of the Second Lien Loan Documents for the period from the
Incurrence of such Subordinated Debt through the final maturity date of the First Lien Facility, and (C) the Required Lenders under the Second Lien Credit Agreement have approved the terms of the subordination relating to such Subordinated Debt; and

  
 (xii) Debt in respect of Ordinary Course
Obligations in an aggregate amount not to exceed $8,000,000 at any time outstanding. 
  

 59 

 Notwithstanding any other provision under this Section 5.02(b), (A) the maximum
amount of Debt that the Parent or a Subsidiary may Incur pursuant to this Section 5.02(b) shall not be deemed to be exceeded with respect to any outstanding Debt, solely as a result of fluctuations in the exchange rates of currencies and (B)
any Loan Party may Incur Debt owed to any other Loan Party. 
  
 (c) Change in Nature of Business. Make, or permit any of its Subsidiaries to make, any material change in the nature of its business as carried on at the date hereof; provided that the Parent or any of
its Subsidiaries may engage in activities that are ancillary or related to its business. 
  
 (d) Mergers, Etc. Merge into or consolidate with any Person or permit any Person to merge into it, or permit any of its
Subsidiaries to do so, except that: 
  
 (i) any
Subsidiary of the Borrower may merge into or consolidate with the Borrower or any other Subsidiary of the Borrower, provided that, in the case of any such merger or consolidation (x) of the Borrower, the Borrower shall be the surviving Person
and (y) in the case of a merger among Subsidiaries of the Borrower, the Person formed by such merger or consolidation shall be a Subsidiary of the Borrower; and 
  
 (ii) in connection with any sale or other disposition permitted under Section 5.02(e) (other than
clause (ii) thereof), any Subsidiary of the Borrower may permit any other Person to merge into or consolidate with it; 
  
 provided that in each case, immediately after giving effect thereto, no event shall occur and be continuing that constitutes a Default. 

 
 (e) Sales, Etc., of Assets. Sell, lease, transfer
or otherwise dispose of, or permit any of its Subsidiaries to sell, lease, transfer or otherwise dispose of, any assets, or grant any option or other right to purchase, lease or otherwise acquire any assets, other than Inventory to be sold in the
ordinary course of its business, except: 
  
 (i)
sales and leases of assets, including, without limitation, fiber sales in the ordinary course of its business consistent with prudent business practice for companies engaged in similar businesses for cash and fair value; 
  
 (ii) in a transaction authorized by Section 5.02(d)
(other than clause (ii) thereof); 
  
 (iii) sales for cash and for fair value of assets related to the e^deltacom and OSDA businesses; 
  
 (iv) sales of assets as consented to by the Required Lenders for cash and for fair value; 
  

 60 

 (v) sales of obsolete equipment for cash and for fair value in an aggregate amount not to
exceed (A) $2,000,000 and (B) $10,000,000 to the extent the proceeds thereof are used by any Loan Party to purchase replacement equipment that is substantially similar in type and function to the equipment sold; 
  
 (vi) any sale, lease, transfer or other disposition by the
Parent or any Subsidiary of the Parent to the Borrower and its Subsidiaries that are Loan Parties; and 
  
 (vii) assignments, sales or other dispositions at fair market value for cash of accounts receivable representing amounts owed to any Loan
Party by any Person that is subject to a proceeding under the Bankruptcy Code; 
  
 provided that in the case of sales of assets pursuant to clauses (iii), (iv) and (v)(x) above which (A) occur prior to the date on which all Obligations under first, the First Lien Loan Documents or the
Refinanced First Lien Loan Documents have been paid in full, the Borrower shall, on the date of receipt by any Loan Party or any of its Subsidiaries of the Net Cash Proceeds from such sale, prepay the obligations under the First Lien Loan Documents
or the Refinanced First Lien Loan Documents pursuant to, and in the amount and order of priority set forth therein, second, the Second Lien Loan Documents or the Refinanced Second Lien Loan Documents have been paid in full, the Borrower shall, on
the date of receipt by any Loan Party or any of its Subsidiaries of the Net Cash Proceeds from such sale, prepay the obligations under the Second Lien Loan Documents or the Refinanced Second Lien Loan Documents pursuant to, and thereafter in the
amount and order of priority set forth therein and to the extent all such obligations have been satisfied, prepay the Advances pursuant to, and in the amount and order of priority set forth in, Section 2.04(b)(ii), as specified therein, and
(B) occur after the date on which all Obligations under the First Lien Loan Documents or the Refinanced First Lien Loan Documents and the Second Lien Loan Documents or the Refinanced Second Lien Loan Documents, have been paid in full, the Borrower
shall, on the date of receipt by any Loan Party or any of its Subsidiaries of the Net Cash Proceeds from such sale, prepay the Advances pursuant to, and in the amount and order of priority set forth in, Section 2.04(b)(ii), as specified
therein. Nothing in this Section 5.02(e) shall restrict the Parent from issuing, selling, transferring or otherwise disposing of, for or without consideration and by dividend or otherwise, any Equity Interests in the Parent, or any option,
warrant or other right to purchase or otherwise acquire any Equity Interests in the Parent. 
  
 (f) Investments in Other Persons. Make or hold, or permit any of its Subsidiaries to make or hold, any Investment in any Person,
except: 
  
 (i) equity Investments by the Parent
and its Subsidiaries in their Subsidiaries outstanding on the date hereof and other Investments in Loan Parties, including Persons who become Loan Parties in a transaction permitted by Section 5.02(d); 
  

 61 

 (ii) loans and advances to employees in the ordinary course of the business of the Parent
and its Subsidiaries in an aggregate principal amount not to exceed $1,000,000 at any time outstanding; 
  
 (iii) Investments in Cash Equivalents; 
  
 (iv) Investments existing on the date hereof and described on Schedule 4.01(u) hereto; 
  
 (v) extension of trade credit in the ordinary course of
business; and 
  
 (vi) Investments permitted
pursuant to Section 5.02(d). 
  
 (g)
Restricted Payments. Declare or pay, any dividends, purchase, redeem, retire, defease or otherwise acquire for value any of its Equity Interests now or hereafter outstanding, return any capital to its stockholders, partners or members (or the
equivalent Persons thereof) as such, make any distribution of assets, Equity Interests, obligations or securities to its stockholders, partners or members (or the equivalent Persons thereof) as such (each, a “Restricted Payment”) or
permit any of its Subsidiaries to make a Restricted Payment except (i) Restricted Payments by a Subsidiary of the Borrower or BTI to the Borrower or BTI, respectively, and to other Subsidiaries of the Borrower and BTI that are its parent (ii) if no
Event of Default has occurred and is continuing, the Borrower may declare and pay dividends in cash or otherwise make distributions in cash to the Parent, to pay (A) scheduled interest and principal of Surviving Debt and (B) cash in lieu of issuing
fractional shares of its Capital Stock in an aggregate amount not to exceed $250,000, (iii) the declaration or payment of dividends or distributions solely in Equity Interests of the Parent (including Series A PIK Dividends and Series B PIK
Dividends) or (iv) the purchase, redemption, retirement, defeasance or other acquisition for value of any of the Equity Interests of the Parent (A) in exchange for other Equity Interests of the Parent (including in connection with a Benefit Plan
Exchange Offer), (B) upon the conversion of Preferred Interests of the Parent or the exercise, exchange or conversion of stock options, warrants or similar rights to acquire Equity Interests of the Parent, (C) in connection with any purchase,
redemption, retirement, defeasance or other acquisition for value of Equity Interests of the Parent tendered by the holder of such Equity Interests in payment of withholding or other taxes relating to the exercise, exchange or conversion of stock
options, warrants or other similar rights to acquire Equity Interests of the Parent or (D) tendered in settlement of indemnification or similar claims by the Parent against a holder of Equity Interests of the Parent. 
  
 (h) Amendments of Constitutive Documents. Amend, or
permit any of its Subsidiaries to amend, its certificate of incorporation or bylaws or other constitutive documents except for any amendment that could not reasonably be expected to have a Material Adverse Effect. 
  

 62 

 (i) Accounting Changes. Make or permit, or permit any of its Subsidiaries to make
or permit, any change in (i) accounting policies or reporting practices, except as required by generally accepted accounting principles, or (ii) Fiscal Year. 
  

(j) Prepayments, Etc., of Debt. (i) Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled amortization
or maturity thereof in any manner, or make any payment in violation of any subordination terms of, any Debt or permit any of its Subsidiaries to do so except (A) the payment or prepayment of any or all of the Obligations under the First Lien Loan
Documents or, Refinanced First Lien Loan Documents, the Second Lien Loan Document or the Refinanced Second Lien Loan Documents in accordance with the terms thereof, (B) subject to the Third Lien Intercreditor and Subordination Agreement, the payment
or prepayment of any or all of the Obligations under the Loan Documents, (C) regularly scheduled or required repayments or redemptions of Surviving Debt and (D) the prepayment of Debt of any Loan Party by the Parent or any Subsidiary of the Parent
or (ii) amend, modify or change in any manner any term or condition of any Surviving Debt or permit any of its Subsidiaries to do so, except for any amendment, modification or change of Surviving Debt that (A) could not reasonably be expected to
have a Material Adverse Effect, (B) would not accelerate the scheduled amortization or final maturity date of such Surviving Debt (C) would not increase the applicable interest rate of such Surviving Debt, or permit any of its Subsidiaries to do any
of the foregoing and (D) will not contain mandatory redemption prepayment covenant or event of default provisions materially more restrictive than the terms of such Surviving Debt prior to the date of such amendment, modification or change;
provided that, notwithstanding the foregoing, the Parent and its Subsidiaries may consummate any Permitted Refinancing, Receivables Financing, Replacement Financing or Existing Debt Refinancing (and thereafter make any regularly scheduled or
required repayments or redemptions of Debt incurred in connection with any such Permitted Refinancing, Receivables Financing, Replacement Financing or Existing Debt Refinancing). 
  
 (k) Negative Pledge. Enter into or suffer to exist, or permit any of its Subsidiaries to enter into
or suffer to exist, any agreement prohibiting or conditioning the creation or assumption of any Lien upon any of its property or assets except (i) in favor of (A) the Lenders under this Agreement, (B) the First Lien Lenders as provided and defined
in the First Lien Loan Documents or (C) the Second Lien Lenders under the Second Lien Loan Documents or (ii) in connection with (A) any Surviving Debt (as such restriction exists on the date hereof) or (B) any Capitalized Lease permitted under
Section 5.02(b)(ii) solely to the extent that such Capitalized Lease prohibits a Lien on the property subject thereto. 
  
 (l) Partnerships, Etc. Become a general partner in any general or limited partnership or joint venture, or permit any of its
Subsidiaries to do so. 
  

 63 

 (m) Speculative Transactions. Engage, or permit any of its Subsidiaries to engage,
in any transaction involving commodity options or futures contracts or any similar speculative transactions. 
  
 (n) Formation of Subsidiaries. Organize, or permit any Subsidiary to organize, any new Subsidiary except so long as (i) there
exists no Default or Event of Default both before and after giving effect to the creation of any new wholly owned Subsidiary and the transfer of any assets to such wholly owned Subsidiary, and (ii) the applicable Loan Party, owning any portions of
the stock of any such new wholly owned Subsidiary immediately delivers all shares of stock of the new wholly owned Subsidiary to the First Lien Collateral Agent or the Second Lien Collateral Agent, as applicable, subject to the provisions of the
Third Lien Intercreditor and Subordination Agreement, for the benefit of the Lenders, the Lenders under the First Lien Loan Documents and the Lenders under the Second Lien Loan Documents, together with stock powers executed in blank and executes and
delivers to the Collateral Agent pledge agreements pledging all such stock to secure the Obligations and the Obligations under the First Lien Loan Documents and the Second Lien Loan Documents, in form substantially similar to the applicable Loan
Document. 
  
 (o) Payment Restrictions
Affecting Subsidiaries. Directly or indirectly, enter into or suffer to exist, or permit any of its Subsidiaries to enter into or suffer to exist, any agreement or arrangement limiting the ability of any of its Subsidiaries to declare or pay
dividends or other distributions in respect of its Equity Interests or repay or prepay any Debt owed to, make loans or advances to, or otherwise transfer assets to or invest in, any Loan Party or any Subsidiary of a Loan Party (whether through a
covenant restricting dividends, loans, asset transfers or investments, a financial covenant or otherwise), except (i) the Loan Documents, (ii) the First Lien Loan Documents, (iii) the Second Lien Loan Documents, and (iv) any agreement or instrument
evidencing Surviving Debt (as such restriction exists on the date hereof). 
  
 (p) Amendment, Etc., of Material Contracts. Cancel or terminate (except in accordance with the terms thereof) any Material Contract, or consent to or accept any cancellation or termination thereof (except in
accordance with the terms thereof), amend or otherwise modify any such Material Contract or give any consent, waiver or approval thereunder, waive any default under or breach of any such Material Contract, agree in any manner to any other amendment,
modification or change of any term or condition of any such Material Contract or take any other action in connection with any such Material Contract that would impair the value of the interest or rights of any Loan Party thereunder or that would
impair the interest or rights of any Agent or any Lender, or permit any of its Subsidiaries to do any of the foregoing, except, in each of the foregoing cases, where to do so would not be reasonably likely to have a Material Adverse Effect.

  
 (q) Intentionally omitted. 
  

 64 

 Section 5.03. Reporting Requirements. So long as any Advance or any other Obligation of any Loan
Party under any Loan Document shall remain unpaid, the Loan Parties shall furnish to the Agents and the Lenders: 
  
 (a) Default Notice. As soon as possible and in any event within two days after the occurrence of each Default, Event of Default, or
any event, development or occurrence reasonably likely to have a Material Adverse Effect continuing on the date of such statement, a statement of the Chief Financial Officer of the Borrower setting forth details of such Default, Event of Default, or
any such event, development or occurrence and the action that the Borrower has taken and proposes to take with respect thereto. 
  
 (b) Annual Financials. As soon as available and in any event within 90 days after the end of each Fiscal Year, a copy of an annual
report on Form 10-K for such year for the Parent and its Subsidiaries, including therein a Consolidated balance sheet of the Parent and its Subsidiaries as of the end of such Fiscal Year and Consolidated statement of income and a Consolidated
statement of cash flows of the Parent and its Subsidiaries for such Fiscal Year, in each case accompanied by an opinion acceptable to the Required Lenders of BDO Seidman, LLP or other independent public accountants of recognized standing acceptable
to the Required Lenders. 
  
 (c) Quarterly
Financials. As soon as available and in any event within 45 days after the end of each of the first three quarters of each Fiscal Year, Consolidated balance sheet of the Parent and its Subsidiaries as of the end of such quarter and Consolidated
statement of income and a Consolidated statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous fiscal quarter and ending with the end of such fiscal quarter and Consolidated statement of income
and a Consolidated statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous Fiscal Year and ending with the end of such quarter, setting forth in each case in comparative form the corresponding
figures for the corresponding date or period of the preceding Fiscal Year. 
  
 (d) Monthly Financials. As soon as available and in any event within 30 days after the end of each month, (i) a Consolidated balance sheet of the Parent and its Subsidiaries as of the end of such month, a
Consolidated statement of income and a Consolidated statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous month and ending with the end of such month, and a Consolidated statement of income
and a Consolidated statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous Fiscal Year and ending with the end of such month, setting forth in each case in comparative form the corresponding
figures for the preceding month, all in reasonable detail and duly certified by the Chief Financial Officer of the Parent and (ii) a condensed receivables aging report, prepared in accordance with the Borrower’s customary practice from time to
time, for the Loan Parties for such month with respect to 

  

 65 

 
their major lines of business and any significant specific accounts review necessary to support bad debt allowances, certified by the Chief Financial Officer
of the Parent as fairly and accurately reporting the information described therein. 
  
 (e) Forecasts and Budgets. As soon as available and in any event no later than 45 days after the end of each Fiscal Year, the
following prepared by management of the Borrower, in form satisfactory to the Administrative Agent (i) balance sheets, income statements and cash flow statements on a monthly and annual basis for the current Fiscal Year; (ii) balance sheets, income
statements and cash flow statements on an annual basis for each Fiscal Year thereafter until the Termination Date; and (iii) a selling, general and administrative expense budget and a capital expenditure budget for the Loan Parties for each Fiscal
Year in form and substance reasonably satisfactory to the Administrative Agent. 
  
 (f) Litigation. Promptly after the commencement thereof, notice of all actions, suits, investigations, litigation and proceedings
before any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, affecting any Loan Party or any of its Subsidiaries of the type described in Section 4.01(f), and promptly after the
occurrence thereof, notice of any adverse change in the status or the financial effect on any Loan Party or any of its Subsidiaries of the Disclosed Litigation from that described on Schedule 4.01(f) hereto. 
  
 (g) Securities Reports. Promptly after the sending or
filing thereof, copies of all proxy statements, financial statements and reports that any Loan Party or any of its Subsidiaries sends to its stockholders, and copies of all regular, periodic and special reports, and all registration statements, that
any Loan Party or any of its Subsidiaries files with the SEC or any governmental authority that may be substituted therefor, or with any national securities exchange. 
  
 (h) Creditor Reports. Promptly after the furnishing thereof, copies of any statement or report
furnished to any holder of Debt securities of any Loan Party or of any of its Subsidiaries pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished to the Lenders pursuant to any other
clause of this Section 5.03. 
  
 (i)
Agreement Notices. Promptly upon receipt thereof, copies of all notices, requests and other documents received by any Loan Party or any of its Subsidiaries under or pursuant to any Material Contract or material instrument, indenture, loan or
credit or similar agreement and, from time to time upon request by the Administrative Agent, such information and reports regarding the related documents, the Material Contracts and such instruments, indentures and loan and credit and similar
agreements as the Administrative Agent or any Lender may reasonably request. 
  
 (j) Revenue Agent Reports. Within 10 days after receipt, copies of all Revenue Agent Reports (Internal Revenue Service Form 886), or other written 

  

 66 

 
proposals of the Internal Revenue Service, that propose, determine or otherwise set forth positive adjustments to the Federal income tax liability of the
affiliated group (within the meaning of Section 1504(a)(1) of the Internal Revenue Code) of which the Borrower is a member aggregating $2,000,000 or more. 
  
 (k) Tax Certificates. (x) Promptly, and in any event within 15 Business Days after the due date (with extensions) for filing the
final Federal income tax return in respect of each taxable year, a certificate (a “Tax Certificate”), signed by the President or the Chief Financial Officer of the Borrower, stating that the Loan Parties have paid to the Internal
Revenue Service or other taxing authority, the full amount that the Loan Parties are required to pay in respect of Federal income tax for such year and that the Loan Parties have received any amounts payable to them, and have not paid amounts in
respect of taxes (Federal, state, local or foreign) in excess of the amount they are required to pay, under the Tax Agreement in respect of such taxable year, and (y) all correspondence between any Loan Party and the Internal Revenue Service or
other taxing authority relating to any request for, grant of and compliance with any extensions granted with respect to the filing of any income tax returns. 
  

(l) ERISA. (i) ERISA Events and ERISA Reports. (A) Promptly and in any event within 10 days after any Loan Party or any ERISA
Affiliate knows or has reason to know that any ERISA Event has occurred, a statement of the Chief Financial Officer of the Borrower describing such ERISA Event and the action, if any, that such Loan Party or such ERISA Affiliate has taken and
proposes to take with respect thereto and (B) on the date any records, documents or other information must be furnished to the PBGC with respect to any Plan pursuant to Section 4010 of ERISA, a copy of such records, documents and information.

  
 (ii) Plan Terminations. Promptly and
in any event within two Business Days after receipt thereof by any Loan Party or any ERISA Affiliate, copies of each notice from the PBGC stating its intention to terminate any Plan or to have a trustee appointed to administer any Plan. 

 
 (iii) Plan Annual Reports. Promptly and in any
event within 30 days after the filing thereof with the Internal Revenue Service, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) with respect to each Plan. 
  
 (iv) Multiemployer Plan Notices. Promptly and in any
event within five Business Days after receipt thereof by any Loan Party or any ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of each notice concerning (A) the imposition of Withdrawal Liability by any such Multiemployer Plan, (B)
the reorganization or termination, within the meaning of Title IV of ERISA, of any such Multiemployer Plan or (C) the amount of liability incurred, or that is reasonably expected to be incurred, by such Loan Party or any ERISA Affiliate in
connection with any event described in clause (A) or (B). 
  

 67 

 (m) Environmental Conditions. Promptly after the assertion or occurrence thereof,
notice of any Environmental Action against or of any noncompliance by any Loan Party or any of its Subsidiaries with any Environmental Law or Environmental Permit that could (i) reasonably be expected to have a Material Adverse Effect or (ii) cause
any property described in the Mortgages to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law. 
  
 (n) Real Property. (i) As soon as available and in any event within 30 days after the end of each Fiscal Year, a report
supplementing Schedules 4.01(s) and 4.01(t) hereto, including an identification of all owned and leased real property disposed of by any Loan Party or any of its Subsidiaries during such Fiscal Year, a list and description (including
the street address, county or other relevant jurisdiction, state, record owner, book value thereof and, in the case of leases of property, lessor, lessee, expiration date and annual rental cost thereof) of all real property acquired or leased during
such Fiscal Year and a description of such other changes in the information included in such Schedules as may be necessary for such Schedules to be accurate and complete and (ii) promptly inform the Administrative Agent of any investments in any of
the real property listed on Schedule 4.01(s) hereto proposed to be made by any Loan Party or Loan Parties such that thereafter, the value thereof shall exceed $1,000,000 individually. 
  
 (o) Insurance. As soon as available and in any event
within 30 days after the end of each Fiscal Year, a report summarizing the insurance coverage (specifying type, amount and carrier) in effect for each Loan Party and its Subsidiaries and containing such additional information as any Agent, or any
Lender through the Administrative Agent, may reasonably specify. 
  
 (p) New Accounts. Promptly after opening an account with a bank or other financial institution not subject to an account control agreement, notification thereof. 
  
 (q) Other Information. Such other information
respecting the business, condition (financial or otherwise), operations, performance, properties or prospects of any Loan Party or any of its Subsidiaries as any Agent, or any Lender through the Administrative Agent, may from time to time reasonably
request. 
  

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 ARTICLE VI 
  
 EVENTS OF DEFAULT 
  
 Section 6.01. Events of Default. If any of the following events (“Events of Default”) shall occur and be continuing: 
  
 (a) (i) the Borrower shall fail to pay any principal of any
Advance when the same shall become due and payable or (ii) the Borrower shall fail to pay any interest on any Advance, or any Loan Party shall fail to make any other payment under any Loan Document, in each case under this clause (ii) within three
Business Days after the same becomes due and payable; or 
  
 (b) any representation or warranty made by any Loan Party (or any of its officers) under or in connection with any Loan Document shall prove to have been incorrect in any material respect when made; or 
  
 (c) any Loan Party shall fail to perform or observe any
term, covenant or agreement contained in Section 2.05(b), 2.13, 5.01(e), (f), (i), (j), (m) or (n), 5.02 or 5.03; provided that failure to comply with the covenant set
forth in Section 2.05(b) shall not constitute an Event of Default unless and until such failure shall remain unremedied for three Business Days; or 
  
 (d) any Loan Party shall fail to perform or observe any other term, covenant or agreement contained in any Loan Document on its part to be
performed or observed if such failure shall remain unremedied for 30 days after the earlier of the date on which (i) a Responsible Officer becomes aware of such failure or (ii) written notice thereof shall have been given to the Borrower by any
Agent or any Lender; or 
  
 (e) any Loan Party or
any of its Subsidiaries shall fail to pay any principal of, premium or interest on or any other amount payable in respect of any Debt that is outstanding in a principal amount (or, in the case of any Hedge Agreement, an Agreement Value) of at least
$2,000,000 either individually or in the aggregate (but excluding Debt outstanding hereunder) of such Loan Party or such Subsidiary (as the case may be), when the same becomes due and payable (whether by scheduled maturity, required prepayment,
acceleration, demand or otherwise); or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt, if the effect of such event or condition is to accelerate, or to permit the acceleration of, the
maturity of such Debt or otherwise to cause, or to permit the holder thereof to cause, such Debt to mature; or any such Debt shall be declared to be due and payable or required to be prepaid or redeemed (other than by a regularly scheduled required
prepayment or redemption), purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof; or 
  
 (f) any Loan Party or any of its Subsidiaries shall
generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against any Loan
Party or any of its Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to
bankruptcy, 

  

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insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, or other similar
official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it) that is being diligently contested by it in good faith, either such proceeding shall remain
undismissed or unstayed for a period of 60 days or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official
for, it or any substantial part of its property) shall occur; or any Loan Party or any of its Subsidiaries shall take any corporate action to authorize any of the actions set forth above in this subsection (f); or 
  
 (g) any judgments or orders for the payment of money
(individually or in the aggregate) in excess of $5,000,000 shall be rendered against any Loan Party or any of its Subsidiaries and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgments or orders or (ii)
there shall be any period of 10 consecutive days during which a stay of enforcement of any such judgments or orders, by reason of a pending appeal or otherwise, shall not be in effect; or 
  
 (h) any non-monetary judgment or order shall be rendered
against any Loan Party or any of its Subsidiaries that could be reasonably likely to have a Material Adverse Effect, and there shall be any period of 10 consecutive days during which a stay of enforcement of such judgment or order, by reason of a
pending appeal or otherwise, shall not be in effect; or 
  
 (i) any provision of any Loan Document after delivery thereof pursuant to Section 3.01 or 5.01(j) shall for any reason cease to be valid and binding on or enforceable against any Loan Party to it, or any
such Loan Party shall so state in writing; or 
  
 (j) any Collateral Document after delivery thereof pursuant to Section 3.01 or 5.01(j) shall for any reason (other than pursuant to the terms thereof) cease to create a valid and perfected third priority lien on and security
interest in the Collateral purported to be covered thereby (subject to Liens securing the First Lien Facilities and Liens securing the Second Lien Facility); or 
  
 (k) a Change of Control shall occur; or 
  
 (l) any ERISA Event shall have occurred with respect to a Plan and the sum (determined as of the date of
occurrence of such ERISA Event) of the Insufficiency of such Plan and the Insufficiency of any and all other Plans with respect to which an ERISA Event shall have occurred and then exist (or the liability of the Loan Parties and the ERISA Affiliates
related to such ERISA Event) exceeds $2,000,000; or 
  

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 (m) any Loan Party or any ERISA Affiliate shall have been notified by the sponsor of a
Multiemployer Plan that it has incurred Withdrawal Liability to such Multiemployer Plan in an amount that, when aggregated with all other amounts required to be paid to Multiemployer Plans by the Loan Parties and the ERISA Affiliates as Withdrawal
Liability (determined as of the date of such notification), exceeds $2,000,000 or requires payments exceeding $1,000,000 per annum; or 
  
 (n) any Loan Party or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is
in reorganization or is being terminated, within the meaning of Title IV of ERISA, and as a result of such reorganization or termination the aggregate annual contributions of the Loan Parties and the ERISA Affiliates to all Multiemployer Plans that
are then in reorganization or being terminated have been or will be increased over the amounts contributed to such Multiemployer Plans for the plan years of such Multiemployer Plans immediately preceding the plan year in which such reorganization or
termination occurs by an amount exceeding $1,000,000; or 
  
 (o) an “Event of Default” (as defined in any Mortgage) shall have occurred and be continuing; 
  
 (p) an “Event of Default” shall have occurred and be continuing under the First Lien Credit Agreement or the Second Lien Credit
Agreement; 
  
 then, and in any such event, the Administrative Agent shall at the
request, or may with the consent, of the Required Lenders, by notice to the Borrower, declare the Notes, all interest thereon and all other amounts payable under this Agreement and the other Loan Documents to be forthwith due and payable, whereupon
the Notes, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided,
however, that in the event of an actual or deemed entry of an order for relief with respect to the Borrower under the Bankruptcy Code, the Notes, all such interest and all such amounts shall automatically become and be due and payable,
without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower. 
  
 ARTICLE VII 
  
 GUARANTY 
  
 Section 7.01. Parent Guaranty; Limitation of Liability. (a) The Parent hereby absolutely, unconditionally and irrevocably guarantees the punctual payment when due, whether at scheduled maturity or on any date of a required prepayment
or by acceleration, demand or otherwise, of all Obligations of each other Loan Party now or hereafter existing under or in respect of the Loan Documents (including, without limitation, any extensions, modifications, substitutions, amendments or
renewals of any or all of the foregoing Obligations), 

  

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whether direct or indirect, absolute or contingent, and whether for principal, interest, premiums, fees, indemnities, contract causes of action, costs,
expenses or otherwise (such obligations being the “Guaranteed Obligations”), and agrees to pay any and all reasonable expenses (including, without limitation, reasonable fees and expenses of counsel) incurred by the Administrative
Agent or any other Secured Party in enforcing any rights under this Agreement or any other Loan Document. Without limiting the generality of the foregoing, the Parent’s liability shall extend to all amounts that constitute part of the
Guaranteed Obligations and would be owed by any other Loan Party to any Secured Party under or in respect of the Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or
similar proceeding involving such other Loan Party. 
  
 (b) The
Parent, and by its acceptance of this Agreement, the Administrative Agent and each other Secured Party, hereby confirms that it is the intention of all such Persons that this Agreement and the Obligations of the Parent hereunder not constitute a
fraudulent transfer or conveyance for purposes of the Bankruptcy Code, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Parent Guaranty and the
Obligations of the Parent hereunder. To effectuate the foregoing intention, the Administrative Agent, the other Lenders and the Parent hereby irrevocably agrees that the obligations of the Parent under this Parent Guaranty at any time shall be
limited to the maximum amount as will result in the Obligations of the Parent under this Agreement not constituting a fraudulent transfer or conveyance. 
  
 (c) The Parent hereby unconditionally and irrevocably agrees that in the event any payment shall be required to be made to any Secured Party under this
Agreement or any other guaranty, the Parent will contribute, to the maximum extent permitted by law, such amounts to each other guarantor so as to maximize the aggregate amount paid to the Secured Parties under or in respect of the Loan Documents.

  
 Section 7.02. Guaranty Absolute. The Parent guarantees
that the Guaranteed Obligations will be paid strictly in accordance with the terms of the Loan Documents, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of any
Lender with respect thereto. The obligations of the Parent under or in respect of this Agreement are independent of the Guaranteed Obligations or any other obligations of any other Loan Party under or in respect of the Loan Documents, and a separate
action or actions may be brought and prosecuted against the Parent to enforce this Agreement, irrespective of whether any action is brought against the Borrower or any other Loan Party or whether the Borrower or any other Loan Party is joined in any
such action or actions. The liability of the Parent under this Agreement shall be irrevocable, absolute and unconditional irrespective of, and the Parent hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating
to, any or all of the following: 
  
 (a) any lack
of validity or enforceability of any Loan Document or any agreement or instrument relating thereto; 
  
 (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Guaranteed Obligations or any other
obligations of any other Loan Party under or in respect of the Loan Documents, or any other 

  

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amendment or waiver of or any consent to departure from any Loan Document, including, without limitation, any increase in the Guaranteed Obligations
resulting from the extension of additional credit to any Loan Party or any of its Subsidiaries or otherwise; 
  
 (c) any taking, exchange, release or non-perfection of any collateral, or any taking, release or amendment or waiver of, or consent to
departure from, any other guaranty, for all or any of the Guaranteed Obligations; 
  
 (d) any manner of application of Collateral or any other collateral, or proceeds thereof, to all or any of the Guaranteed Obligations, or
any manner of sale or other disposition of any collateral for all or any of the Guaranteed Obligations or any other obligations of any Loan Party under the Loan Documents or any other assets of any Loan Party or any of its Subsidiaries; 

 
 (e) any change, restructuring or termination of the
corporate structure or existence of any Loan Party or any of its Subsidiaries; 
  
 (f) any failure of any Secured Party to disclose to any Loan Party any information relating to the business, condition (financial or
otherwise), operations, performance, properties or prospects of any other Loan Party now or hereafter known to such Secured Parties (the Parent waiving any duty on the part of the Secured Parties to disclose such information); 
  
 (g) the failure of any other Person to execute or deliver
this Agreement or any other guaranty or agreement or the release or reduction of liability of the Parent or other guarantor or surety with respect to the Guaranteed Obligations; or 
  
 (h) any other circumstance (including, without limitation, any statute of limitations) or any existence of
or reliance on any representation by any Secured Party that might otherwise constitute a defense available to, or a discharge of, any Loan Party or any other guarantor or surety. 
  
 This Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed
Obligations is rescinded or must otherwise be returned by the Administrative Agent or any Secured Party or any other Person upon the insolvency, bankruptcy or reorganization of the Borrower or any other Loan Party or otherwise, all as though such
payment had not been made. 
  
 Section 7.03. Waivers and
Acknowledgments. (a) The Parent hereby unconditionally and irrevocably waives promptness, diligence, notice of acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor and any other
notice with respect to any of the Guaranteed Obligations and this Agreement and any requirement that any Secured Party protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any action against any
Loan Party or any other Person or any Collateral. 
  

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 (b) The Parent hereby unconditionally and irrevocably waives any right to revoke this Agreement and
acknowledges that this Agreement is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future. 
  
 (c) The Parent hereby unconditionally and irrevocably waives (i) any defense arising by reason of any claim or defense based upon an election of remedies
by any Secured Party that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of the Parent or other rights of the Parent to proceed against any
of the other Loan Parties, any other guarantor or any other Person or any collateral and (ii) any defense based on any right of set-off or counterclaim against or in respect of the Obligations of the Parent hereunder. 
  
 (d) The Parent hereby unconditionally and irrevocably waives any duty on the
part of any Secured Party to disclose to the Parent any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Loan Party or any of its Subsidiaries now or
hereafter known by such Secured Party. 
  
 (e) The Parent
acknowledges that it will receive substantial direct and indirect benefits from the financing arrangements contemplated by the Loan Documents and that the waivers set forth in Section 7.02 and this Section 7.03 are knowingly made in
contemplation of such benefits. 
  
 Section 7.04.
Subrogation. The Parent hereby unconditionally and irrevocably agrees not to exercise any rights that it may now have or hereafter acquire against the Borrower or any other Loan Party or any other inside guarantor that arise from the
existence, payment, performance or enforcement of the Parent’s Obligations under or in respect of this Agreement or any other Loan Document, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or
indemnification and any right to participate in any claim or remedy of any Secured Party against the Borrower, any other Loan Party or any other insider guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or
under contract, statute or common law, including, without limitation, the right to take or receive from the Borrower, any other Loan Party or any other insider guarantor, directly or indirectly, in cash or other property or by set-off or in any
other manner, payment or security on account of such claim, remedy or right, unless and until all of the Guaranteed Obligations and all other amounts payable under this Agreement shall have been paid in full in cash. If any amount shall be paid to
the Parent in violation of the immediately preceding sentence at any time prior to the latest of the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Agreement, and (b) the Termination Date, such amount
shall be received and held in trust for the benefit of the Secured Parties, shall be segregated from other property and funds of the Parent and shall forthwith be paid or delivered to the Administrative Agent in the same form as so received (with
any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and all other amounts payable under this Agreement, whether matured or unmatured, in accordance with the terms of the Loan Documents, or to be held as
collateral for any Guaranteed Obligations or other amounts payable under this Agreement thereafter arising. If (i) the Parent shall make payment to any Secured Party of all or any part of the Guaranteed Obligations, (ii) all of the Guaranteed
Obligations and all other amounts payable under this Agreement shall have been paid in full in cash, and (iii) the Termination Date shall 

  

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have occurred, the Secured Parties will, at the Parent ‘s request and expense, execute and deliver to the Parent appropriate documents, without recourse
and without representation or warranty, necessary to evidence the transfer by subrogation to the Parent of an interest in the Guaranteed Obligations resulting from such payment made by the Parent pursuant to this Agreement. 
  
 Section 7.05. Intentionally omitted. 
  
 Section 7.06. Subordination. The Parent hereby subordinates any and
all debts, liabilities and other Obligations owed to Parent by each other Loan Party (the “Subordinated Obligations”) to the Guaranteed Obligations to the extent and in the manner hereinafter set forth in this Section 7.06:

  
 (a) Prohibited Payments, Etc. Except during the
continuance of a Default (including the commencement and continuation of any proceeding under any Bankruptcy Law relating to any other Loan Party), the Parent may receive regularly scheduled payments from any other Loan Party on account of the
Subordinated Obligations. After the occurrence and during the continuance of any Default (including the commencement and continuation of any proceeding under any bankruptcy law relating to any other Loan Party), however, unless the Required Lenders
otherwise agree, the Parent shall not demand, accept or take any action to collect any payment on account of the Subordinated Obligations. 
  
 (b) Prior Payment of Guaranteed Obligations. In any proceeding under the Bankruptcy Code (or similar law) relating to any other Loan Party, the
Parent agrees that the Secured Parties shall be entitled to receive payment in full in cash of all Guaranteed Obligations (including Pose-Petition Interest) before the Parent receives payment of any Subordinated Obligations. 
  
 (c) Turn-Over. After the occurrence and during the continuance of any
Default (including the commencement and continuation of any proceeding under any Bankruptcy Law relating to any other Loan Party), the Parent shall, if the Administrative Agent so requests, collect, enforce and receive payments on account of the
Subordinated Obligations as trustee for the Secured Parties and deliver such payments to the Administrative Agent on account of the Guaranteed Obligations (including all Post-Petition Interest), together with any necessary endorsements or other
instruments of transfer, but without reducing or affecting in any manner the liability of the Parent under the other provisions of this Agreement. 
  
 (d) Administrative Agent Authorization. After the occurrence and during the continuance of any Default (including the commencement and continuation
of any proceeding under the Bankruptcy Code relating to any other Loan Party), the Administrative Agent is authorized and empowered (but without any obligation to so do), in its discretion, (i) in the name of the Parent, to collect and enforce, and
to submit claims in respect of, Subordinated Obligations and to apply any amounts received thereon to the Guaranteed Obligations (including any and all Post-Petition Interest), and (ii) to require the Parent (A) to collect and enforce, and to submit
claims in respect of, Subordinated Obligations and (B) to pay any amounts received on such obligations to the Administrative Agent for application to the Guaranteed Obligations (including any and all Post-Petition Interest). 
  

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 Section 7.07. Continuing Guaranty; Assignments. This Agreement is a continuing guaranty and shall
(a) remain in full force and effect until the latest of (i) the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Agreement and (ii) the Termination Date, (b) be binding upon the Parent, its successors
and assigns and (c) inure to the benefit of and be enforceable by the Secured Parties and their successors, transferees and assigns. Without limiting the generality of clause (c) of the immediately preceding sentence, subject to Section
9.07, any Secured Party may assign or otherwise transfer all or any portion of its rights and obligations under this Agreement (including, without limitation, all or any portion of its Commitments, the Advances owing to it and the Note or Notes
held by it) to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Secured Party herein or otherwise, in each case as and to the extent provided in Section 9.07. The
Parent shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of the Secured Parties. 
  
 Section 7.08. Release of the Parent. In the event that all of the capital stock of the Parent is sold or otherwise disposed of (except to the
Borrower, BTI or any Subsidiary of the Borrower or BTI) or liquidated in compliance with the requirements of this Agreement (or such sale or other disposition or liquidation has been approved in writing by the Required Lenders) and the proceeds of
such sale, disposition or liquidation are applied in accordance with the provisions of this Agreement, to the extent applicable, the Parent shall be released from this Agreement and this Agreement shall, as to the Parent, terminate, and have no
further force or effect (it being understood and agreed that the sale of one or more persons that own, directly or indirectly, all of the capital stock or partnership interests of the Parent shall be deemed to be a sale of the Parent for the
purposes of this Section 7.08). 
  
 ARTICLE VIII 

 
 THE AGENT 
  
 Section 8.01. Authorization and Action. Each Lender hereby appoints and authorizes each Agent to take such action as
agent on its behalf and to exercise such powers and discretion under this Agreement and the other Loan Documents as are delegated to such Agent by the terms hereof and thereof, together with such powers and discretion as are reasonably incidental
thereto. As to any matters not expressly provided for by the Loan Documents (including, without limitation, enforcement or collection of the Notes), no Agent shall be required to exercise any discretion or take any action, but shall be required to
act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Lenders, and such instructions shall be binding upon all Lenders and all holders of Notes; provided,
however, that no Agent shall be required to take any action that exposes such Agent to personal liability or that is contrary to this Agreement or applicable law. Each Agent agrees to give to each Lender prompt notice of each notice given to
it by the Borrower pursuant to the terms of this Agreement. 
  
 Section 8.02. Agents’ Reliance, Etc. Neither any Agent nor any of their respective directors, officers, agents or employees shall be liable for any action taken or omitted to be taken by it or them under or in connection with
the Loan Documents, except for its or their 

  

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own gross negligence or willful misconduct. Without limitation of the generality of the foregoing, each Agent: (a) may treat the payee of any Note as the
holder thereof until, in the case of the Administrative Agent, the Administrative Agent receives and accepts an Assignment and Acceptance entered into by the Lender that is the payee of such Note, as assignor, and an Eligible Assignee, as assignee,
or, in the case of any other Agent, such Agent has received notice from the Administrative Agent that it has received and accepted such Assignment and Acceptance, in each case as provided in Section 9.07; (b) may consult with legal counsel
(including counsel for any Loan Party), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel,
accountants or experts; (c) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations (whether written or oral) made in or in connection with the Loan Documents;
(d) shall not have any duty to ascertain or to inquire as to the performance or observance of any of the terms, covenants or conditions of any Loan Document on the part of any Loan Party or to inspect the property (including the books and records)
of any Loan Party; (e) shall not be responsible to any Lender for the due execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of any lien or security interest created or purported to be
created under or in connection with, any Loan Document or any other instrument or document furnished pursuant thereto; and (f) shall incur no liability under or in respect of any Loan Document by acting upon any notice, consent, certificate or other
instrument or writing (which may be by telegram, telecopy or telex) believed by it to be genuine and signed or sent by the proper party or parties. 
  
 Section 8.03. WCAS and Affiliates. With respect to any Commitments, any Advances made by it and any Notes issued to it, WCAS shall have the same
rights and powers under the Loan Documents as any other Lender and may exercise the same as though it were not an Agent; and the term “Lender” or “Lenders” shall, unless otherwise expressly indicated, include WCAS in its
individual capacity. WCAS and its affiliates may accept deposits from, lend money to, act as trustee under indentures of, accept investment banking engagements from and generally engage in any kind of business with, any Loan Party, any of its
Subsidiaries and any Person that may do business with or own securities of any Loan Party or any such Subsidiary, all as if WCAS was not an Agent and without any duty to account therefor to the Lenders. 
  
 Section 8.04. Lender Credit Decision. Each Lender acknowledges that it
has, independently and without reliance upon any Agent or any other Lender and based on the financial statements referred to in Section 4.01 and such other documents and information as it has deemed appropriate, made its own credit analysis
and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon any Agent or any other Lender and based on such documents and information as it shall deem appropriate at the time,
continue to make its own credit decisions in taking or not taking action under this Agreement. 
  
 Section 8.05. Indemnification. (a) Each Lender severally agrees to indemnify each Agent (to the extent not promptly reimbursed by the Borrower) from and against such Lender’s ratable share (determined as
provided below) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any 

  

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kind or nature whatsoever that may be imposed on, incurred by, or asserted against such Agent in any way relating to or arising out of the Loan Documents or
any action taken or omitted by such Agent under the Loan Documents; provided, however, that no Lender shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements resulting from such Agent’s gross negligence or willful misconduct as found in a final, non-appealable judgment by a court of competent jurisdiction. Without limitation of the foregoing, each Lender agrees to reimburse each Agent
promptly upon demand for its ratable share of any costs and expenses (including, without limitation, fees and expenses of counsel) payable by the Borrower under Section 9.04 (other than under Section 9.04(c)), to the extent that such
Agent is not promptly reimbursed for such costs and expenses by the Borrower. 
  
 (b) For purposes of this Section 8.05, the Lenders’ respective ratable shares of any amount shall be determined, at any time, according to the sum of (i) the aggregate principal amount of the Advances
outstanding at such time and owing to the respective Lenders and (ii) the Commitments of the respective Lenders at such time. The failure of any Lender to reimburse any Agent promptly upon demand for its ratable share of any amount required to be
paid by the Lenders to such Agent as provided herein shall not relieve any other Lender of its obligation hereunder to reimburse such Agent for its ratable share of such amount, but no Lender shall be responsible for the failure of any other Lender
to reimburse such Agent for such other Lender’s ratable share of such amount. Without prejudice to the survival of any other agreement of any Lender hereunder, the agreement and obligations of each Lender contained in this Section 8.05
shall survive the payment in full of principal, interest and all other amounts payable hereunder and under the other Loan Documents. 
  
 Section 8.06. Successor Agents. Any Agent may resign at any time by giving written notice thereof to the Lenders and the Borrower and may be
removed at any time with or without cause by the Required Lenders. Upon any such resignation or removal, the Required Lenders shall have the right to appoint a successor Agent. If no successor Agent shall have been so appointed by the Required
Lenders, and shall have accepted such appointment, within 30 days after the retiring Agent’s giving of notice of resignation or the Required Lenders’ removal of the retiring Agent, then the retiring Agent may, on behalf of the Lenders,
appoint a successor Agent, which shall be a commercial bank organized under the laws of the United States or of any State thereof and having a combined capital and surplus of at least $250,000,000. Upon the acceptance of any appointment as Agent
hereunder by a successor Agent and, in the case of a successor Collateral Agent, upon the execution and filing or recording of such financing statements, or amendments thereto, and such amendments or supplements to the Mortgages, and such other
instruments or notices, as may be necessary or desirable, or as the Required Lenders may request, in order to continue the perfection of the Liens granted or purported to be granted by the Collateral Documents, such successor Agent shall succeed to
and become vested with all the rights, powers, discretion, privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations under the Loan Documents. If within 45 days after written notice is
given of the retiring Agent’s resignation or removal under this Section 8.06 no successor Agent shall have been appointed and shall have accepted such appointment, then on such 45th day (i) the retiring Agent’s resignation or
removal shall become effective, (ii) the retiring Agent shall thereupon be discharged from its duties and obligations under the Loan Documents and (iii) the Required Lenders shall thereafter perform all duties of the retiring Agent under the Loan
Documents until such time, if any, as the Required 

  

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Lenders appoint a successor Agent as provided above. After any retiring Agent’s resignation or removal hereunder as Agent shall have become effective,
the provisions of this Article VIII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. It is understood and agreed that no Competitor shall qualify or be appointed as a
successor Agent under this Section 8.06. 
  
 Section 8.07.
Appointment of Subagents. Anything herein to the contrary notwithstanding, the Collateral Agent may from time to time, when the Collateral Agent deems it to be necessary, appoint one or more subagents or collateral co-agents (each, a
“Subagent”) with respect to all or any part of the Collateral. In the event that the Collateral Agent so appoints any Subagent with respect to any Collateral, (i) the Liens on such Collateral granted pursuant to the applicable Collateral
Documents shall be deemed for purposes of this Agreement and the other Loan Documents to have been granted to such Subagent, in addition to the Collateral Agent, for the benefit of the Secured Parties, (ii) such Subagent shall be automatically
vested, in addition to the Collateral Agent, with all rights, powers, privileges, interests and remedies of the Collateral Agent under the Loan Documents with respect to such Collateral, (iii) the provisions of this Article VIII and of
Section 9.04 that refer to each Agent shall be deemed to be references to each Agent and/or each Subagent, as the context may require, and (iv) the term “Collateral Agent”, when used herein or in any of the applicable Collateral
Documents in relation to any rights, powers, privileges, interests and remedies of the Collateral Agent with respect to such Collateral shall include such Subagent; provided, however, that no such Subagent shall be authorized to take any action with
respect to any such Collateral unless and except to the extent expressly authorized in writing by the Collateral Agent. 
  
 ARTICLE IX 
  
 MISCELLANEOUS 
  
 Section 9.01. Amendments, Etc. No amendment or waiver of any provision of this Agreement or the Notes or any other Loan Document, nor consent to any departure by any Loan Party therefrom, shall in any event be effective unless the
same shall be in writing and signed (or, in the case of the Collateral Documents, consented to) by the Required Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given;
provided, however, that (a) no amendment, waiver or consent shall, unless in writing and signed by all of the Lenders (other than any Lender that is, at such time, a Defaulting Lender), do any of the following at any time: (i) waive
any of the conditions specified in Section 3.01, (ii) change the number of Lenders or the percentage of (x) the Commitments or (y) the aggregate unpaid principal amount of the Advances that, in each case, shall be required for the Lenders or
any of them to take any action hereunder, (iii) reduce or limit the obligations of the Parent under Section 7.01 or release the Parent or otherwise limit the Parent ‘s liability with respect to the Obligations owing to the Agents and the
Lenders, (iv) release all or substantially all of the Collateral in any transaction or series of related transactions or permit the creation, incurrence, assumption or existence of any Lien on all or substantially all of the Collateral in any
transaction or series of related transactions to secure any Obligations other than Obligations owing to the Lenders under the Loan Documents, or (v) amend Section 2.10 or this Section 9.01, and (b) no amendment, waiver or consent
shall, unless in writing and signed by the 

  

 79 

 
Required Lenders and each Lender (other than any Lender that is, at such time, a Defaulting Lender) that has a Commitment under any of the Facility if such
Lender is directly affected by such amendment, waiver or consent, (i) increase the Commitments of such Lender or subject such Lender to any additional obligations, (ii) reduce the principal of, or interest on, the Notes held by such Lender or any
fees or other amounts payable hereunder to such Lender or (iii) postpone any date fixed for any payment of principal of, or interest on, the Notes held by such Lender or any fees or other amounts payable hereunder to such Lender; and provided
further that no amendment, waiver or consent shall, unless in writing and signed by an Agent in addition to the Lenders required above to take such action, affect the rights or duties of such Agent under this Agreement or the other Loan
Documents. 
  
 Section 9.02. Notices, Etc. All notices and
other communications provided for hereunder shall be in writing (including telegraphic, telecopy or telex communication) and mailed, telegraphed, telecopied, telexed or delivered, if to the Borrower, at its address at 1791 OG Skinner Drive, West
Point, GA 81833, Attention: Chief Financial Officer; if to any Amendment Lender, at its Domestic Lending Office specified opposite its name on Schedule I hereto or as otherwise specified in the Assignment and Acceptance pursuant to which it became a
Lender; if to the Agent, at its address at 320 Park Avenue, Suite 2500, New York, NY 10022, or, as to any party, at such other address as shall be designated by such party in a written notice to the other parties. All such notices and communications
shall, when mailed, telegraphed, telecopied or telexed, be effective when deposited in the mails, delivered to the telegraph company, transmitted by telecopier or confirmed by telex answerback, respectively, except that notices and communications to
any Agent pursuant to Article II, III or VIII shall not be effective until received by such Agent. Manual delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of this Agreement or the Notes or of any Exhibit
hereto to be executed and delivered hereunder shall be effective as delivery of an original executed counterpart thereof. 
  
 Section 9.03. No Waiver; Remedies. No failure on the part of any Lender or any Agent to exercise, and no delay in exercising, any right hereunder
or under any Note shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law. 
  
 Section 9.04.
Costs and Expenses. (a)The Borrower agrees to pay on demand (i) all costs and expenses of each Agent in connection with the preparation, execution, delivery, administration, modification and amendment of the Loan Documents (including, without
limitation, (A) all due diligence, collateral review, syndication, transportation, computer, duplication, appraisal, audit, insurance, consultant, search, filing and recording fees and expenses and (B) the reasonable and documented fees and expenses
of counsel and financial advisors for each Agent with respect thereto, with respect to advising such Agent as to its rights and responsibilities, or the perfection, protection or preservation of rights or interests, under the Loan Documents, with
respect to negotiations with any Loan Party or with other creditors of any Loan Party or any of its Subsidiaries arising out of any Default or any events or circumstances that may give rise to a Default and with respect to presenting claims in or
otherwise participating in or monitoring any bankruptcy, insolvency or other similar proceeding involving creditors’ rights generally and any proceeding ancillary thereto) and (ii) all costs and expenses of each Agent and 

  

 80 

 
each Lender in connection with the enforcement of the Loan Documents, including, without limitation, the negotiation of this Agreement, whether in any
action, suit or litigation, or any bankruptcy, insolvency or other similar proceeding affecting creditors’ rights generally (including, without limitation, the reasonable and documented fees and expenses of counsel for the Administrative Agent
and each Lender with respect thereto). 
  
 (b) The Borrower agrees
to indemnify and hold harmless each Agent, each Lender and each of their Affiliates and their respective officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against any and all claims,
damages, losses, liabilities and expenses (including, without limitation, reasonable and documented fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in
connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) any claims by third parties involving (i) the Facility, the actual or
proposed use of the proceeds of the Advances, the Loan Documents or any of the transactions contemplated thereby, or (ii) the actual or alleged presence of Hazardous Materials on any property of any Loan Party or any of its Subsidiaries or any
Environmental Action relating in any way to any Loan Party or any of its Subsidiaries, except to the extent such claim, damage, loss, liability or expense results from such Indemnified Party’s gross negligence or willful misconduct. In the case
of an investigation, litigation or other proceeding to which the indemnity in this Section 9.04(b) applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by any Loan Party, its
directors, shareholders or creditors or an Indemnified Party or any Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated by the Loan Documents are consummated. Each of the parties hereto also agrees not to
assert any claim against any other party hereto or any of their respective Affiliates, or any of their respective officers, directors, employees, attorneys and agents, on any theory of liability, for special, indirect, consequential or punitive
damages arising out of or otherwise relating to the Facility, the actual or proposed use of the proceeds of the Advances, the Loan Documents or any of the transactions contemplated by the Loan Documents. 
  
 (c) If any Loan Party fails to pay when due any costs, expenses or other
amounts payable by it under any Loan Document, including, without limitation, fees and expenses of counsel and indemnities, such amount may be paid on behalf of such Loan Party by the Administrative Agent or any Lender, in its sole discretion.

  
 (d) Without prejudice to the survival of any other agreement
of any Loan Party hereunder or under any other Loan Document, the agreements and obligations of the Borrower contained in Sections 2.07 and 2.09 and this Section 9.04 shall survive the payment in full of principal, interest and
all other amounts payable hereunder and under any of the other Loan Documents. 
  
 Section 9.05. Right of Set-off. Upon (a) the occurrence and during the continuance of any Event of Default and (b) the making of the request or the granting of the consent specified by Section 6.01 to
authorize the Administrative Agent to declare the Notes due and payable pursuant to the provisions of Section 6.01, each Agent and each Lender and each of their respective Affiliates is hereby authorized at any time and from time to time, to
the fullest extent permitted by law, to set off and otherwise apply any and all deposits (general or special, 

  

 81 

 
time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Agent, such Lender or such Affiliate to or for the
credit or the account of any Loan Party against any and all of the Obligations of the Borrower now or hereafter existing under the Loan Documents, irrespective of whether such Agent or such Lender shall have made any demand under this Agreement or
such Note or Notes and although such obligations may be unmatured. Each Agent and each Lender agrees promptly to notify the Borrower after any such set-off and application; provided, however, that the failure to give such notice shall not affect the
validity of such set-off and application. The rights of each Agent and each Lender and their respective Affiliates under this Section 9.05 are in addition to other rights and remedies (including, without limitation, other rights of set-off)
that such Agent, such Lender and their respective Affiliates may have. 
  
 Section 9.06. Binding Effect. This Agreement shall become effective when it has been executed by the Borrower and each Agent, and the Administrative Agent has been notified by the Required Lenders that each such Required Lender has
executed it, and thereafter this Agreement shall be binding upon and inure to the benefit of the Borrower, each Agent and each Lender and their respective successors and assigns, except that the Borrower shall not have the right to assign its rights
hereunder or any interest herein without the prior written consent of the Lenders. 
  
 Section 9.07. Assignments and Participations. (a) Each Lender may assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including, without limitation, all
or a portion of its Commitment or Commitments, the Advances owing to it and the Note or Notes held by it); provided, however, that (i) except in the case of an assignment to a Person that, immediately prior to such assignment, was a Lender, an
Affiliate of any Lender or an Approved Fund of any Lender or an assignment of all of a Lender’s rights and obligations under this Agreement, the aggregate amount of the Commitments being assigned to such Eligible Assignee pursuant to such
assignment (determined as of the date of the Assignment and Acceptance with respect to such assignment) shall in no event be less than $1,000,000 (or such lesser amount as shall be approved by the Administrative Agent and, so long as no Event of
Default shall have occurred and be continuing at the time of effectiveness of such assignment, the Borrower, such approval, in the case of the Borrower, not to be unreasonably withheld), (ii) each such assignment shall be to an Eligible Assignee,
and (iii) the parties to each such assignment shall execute and deliver to the Administrative Agent, for its acceptance and recording in the Register, an Assignment and Acceptance, together with any Note or Notes subject to such assignment. No
processing and recordation fee shall be due. 
  
 (b) Upon such
execution, delivery, consent, acceptance and recording, from and after the effective date specified in such Assignment and Acceptance, (i) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have
been assigned to it pursuant to such Assignment and Acceptance, have the rights and obligations of a Lender hereunder and (ii) the Lender assignor thereunder shall, to the extent that rights and obligations hereunder have been assigned by it
pursuant to such Assignment and Acceptance, relinquish its rights (other than its rights under Sections 2.09, 2.10 and 9.04 to the extent any claim thereunder relates to an event arising prior to such assignment) and be released
from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering 

  

 82 

 
all of the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto).

  
 (c) By executing and delivering an Assignment and Acceptance,
each Lender assignor thereunder and each assignee thereunder confirm to and agree with each other and the other parties thereto and hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with any Loan Document or the execution, legality, validity, enforceability, genuineness, sufficiency or
value of, or the perfection or priority of any lien or security interest created or purported to be created under or in connection with, any Loan Document or any other instrument or document furnished pursuant thereto; (ii) such assigning Lender
makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Loan Party or the performance or observance by any Loan Party of any of its obligations under any Loan Document or any other instrument
or document furnished pursuant thereto; (iii) such assignee confirms that it has received a copy of this Agreement, together with copies of the financial statements referred to in Section 4.01 and such other documents and information as it
has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon any Agent, such assigning Lender or any other Lender and based on such
documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi) such assignee
appoints and authorizes each Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Loan Documents as are delegated to such Agent by the terms hereof and thereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as a Lender, as the
case may be. 
  
 (d) The Administrative Agent shall maintain at
its address referred to in Section 9.02 a copy of each Assignment and Acceptance delivered to and accepted by it. 
  
 (e) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an assignee, together with any Note or Notes subject to such
assignment, the Administrative Agent shall, if such Assignment and Acceptance has been completed and is in substantially the form of Exhibit B hereto, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in
the Register and (iii) give prompt notice thereof to the Borrower and each other Agent. In the case of any assignment by a Lender, within five Business Days after its receipt of such notice, the Borrower, at its own expense, shall execute and
deliver to the Administrative Agent in exchange for the surrendered Note or Notes a new Note to the order of such Eligible Assignee in an amount equal to the Commitment assumed by it under each Facility pursuant to such Assignment and Acceptance
and, if any assigning Lender has retained a Commitment hereunder under such Facility, a new Note to the order of such assigning Lender in an amount equal to the Commitment retained by it hereunder. Such new Note or Notes shall be in an aggregate
principal amount equal to the aggregate principal amount of such surrendered Note or Notes, shall be dated the effective date of such Assignment and Acceptance and shall otherwise be in substantially the form of Exhibit A hereto. 

 

 83 

 (f) Each Lender may sell participations to one or more Persons (other than any Loan Party or any of its
Affiliates or a Competitor) in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of its Commitments, the Advances owing to it and the Note or Notes (if any) held by it);
provided, however, that (i) such Lender’s obligations under this Agreement (including, without limitation, its Commitments) shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for
the performance of such obligations, (iii) such Lender shall remain the holder of any such Note for all purposes of this Agreement, (iv) the Borrower, the Agents and the other Lenders shall continue to deal solely and directly with such Lender in
connection with such Lender’s rights and obligations under this Agreement and (v) no participant under any such participation shall have any right to approve any amendment or waiver of any provision of any Loan Document, or any consent to any
departure by any Loan Party therefrom, except to the extent that such amendment, waiver or consent would reduce the principal of, or interest on, the Notes or any fees or other amounts payable hereunder, in each case to the extent subject to such
participation, postpone any date fixed for any payment of principal of, or interest on, the Notes or any fees or other amounts payable hereunder, in each case to the extent subject to such participation, or release all or substantially all of the
Collateral. 
  
 (g) Any Lender may, in connection with any
assignment or participation or proposed assignment or participation pursuant to this Section 9.07, disclose to the assignee or participant or proposed assignee or participant any information relating to the Loan Parties furnished to such
Lender by or on behalf of the Loan Parties; provided, however, that, prior to any such disclosure, the assignee or participant or proposed assignee or participant shall agree to preserve the confidentiality of any Confidential
Information received by it from such Lender. 
  
 (h)
Notwithstanding any other provision set forth in this Agreement, any Lender may at any time create a security interest in all or any portion of its rights under this Agreement (including, without limitation, the Advances owing to it and the Note or
Notes held by it) in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System. 
  
 Section 9.08. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Manual delivery of an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of an original executed counterpart of this Agreement. 
  
 Section 9.09. Confidentiality. Neither any Agent nor any Lender shall disclose any Confidential Information to any Person without the consent of
the Borrower, other than (a) to such Agent’s or such Lender’s Affiliates and their officers, directors, employees, agents and advisors and to actual or prospective Eligible Assignees and participants, and then only on a confidential basis,
(b) as required by any law, rule or regulation or judicial process, (c) as requested or required by any state, Federal or foreign authority or examiner regulating such Lender, (d) to any rating agency when required by it, provided that, prior
to any such disclosure, such rating agency shall undertake to preserve the confidentiality of any Confidential Information relating to the Loan Parties received by it from such Lender and (e) to any direct or 

  

 84 

 
indirect contractual counterparty in swap agreements or such contractual counterparty’s professional advisor, provided, that prior to such disclosure,
such contractual counterparty or professional advisor to such contractual counterparty shall undertake to preserve the confidentiality of any Confidential Information relating to the Loan Parties received by it from such Agent or Lender. 

 
 Section 9.10. Release of Collateral. Upon the sale, lease, transfer
or other disposition of any item of Collateral of any Loan Party (including, without limitation, as a result of the sale, in accordance with the terms of the Loan Documents, of the Loan Party that owns such Collateral) in accordance with the terms
of the Loan Documents, the Collateral Agent will, at the Borrower’s expense, execute and deliver to such Loan Party such documents as such Loan Party may reasonably request to evidence the release of such item of Collateral from the assignment
and security interest granted under the Collateral Documents in accordance with the terms of the Loan Documents. 
  
 Section 9.11. Jurisdiction, Etc. (a) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the
nonexclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York County, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or
any of the other Loan Documents to which it is a party, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may
be heard and determined in any such New York State court or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any of the other
Loan Documents in the courts of any jurisdiction. Notwithstanding the foregoing, no party that is a sovereign entity shall be deemed to have waived any immunity against pre-judgment attachment of any of its assets or properties. 
  
 (b) Each of the parties hereto irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any of the other Loan Documents to which it
is a party in any New York State or Federal court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

  
 Section 9.12. Governing Law. This Agreement and the
Notes shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 Section 9.13. Waiver of Jury Trial. Each of the Loan Parties, the Borrower, the Agents and the Lenders irrevocably waives all right to trial by
jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to any of the Loan Documents, the Advances or the actions of any Agent or any Lender in the negotiation, administration,
performance or enforcement thereof. 
  

 85 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective
officers thereunto duly authorized, as of the date first above written. 
  

									
	 PARENT:
	 	 	 	 ITC^DELTACOM, INC.

					
	 	 	 	 	 	 	By:	 	/s/    RICHARD E. FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer
			
	 BORROWER:
	 	 	 	 INTERSTATE FIBERNET, INC.

					
	 	 	 	 	 	 	By:	 	/s/    RICHARD E. FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer
			
	 SUBSIDIARY GUARANTORS:
	 	 	 	 ITC^DELTACOM COMMUNICATIONS, INC.

					
	 	 	 	 	 	 	By:	 	/s/    RICHARD E. FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer
			
	 	 	 	 	 DELTACOM INFORMATION SYSTEMS, INC.

					
	 	 	 	 	 	 	By:	 	/s/    RICHARD E. FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer
			
	 	 	 	 	 BUSINESS TELECOM, INC.

					
	 	 	 	 	 	 	By:	 	/s/    RICHARD E. FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer

  

			
	BTI TELECOM CORP.
		
	By:	 	/s/    RICHARD E. FISH        
	 Name:
	 	Richard E. Fish
	 Title:
	 	Chief Administrative Officer
	
	BUSINESS TELECOM OF VIRGINIA, INC.
		
	By:	 	/s/    RICHARD E. FISH        
	 Name:
	 	Richard E. Fish
	 Title:
	 	Chief Administrative Officer

  

					
	 WELSH, CARSON, ANDERSON & STOWE VIII, L.P.

		
	By:	 	 WCAS VIII Associates LLC,
 General Partner

		
	By:	 	/s/    JONATHON M.
RATHER        
	 	 	 Name:
	 	Jonathon M. Rather            
	 	 	 Title:
	 	Member            
	
	 WCAS CAPITAL PARTNERS III, L.P.

		
	By:	 	 WCAS CP III Associates L.L.C.
 General Partner

		
	By:	 	/s/    JONATHON M.
RATHER        
	 	 	 Name:
	 	Jonathon M. Rather            
	 	 	 Title:
	 	Managing Member            

  

			
	Individual investors and trusts
		
	By:	 	/s/    JONATHAN M.
RATHER        
	 	 	 Jonathan M. Rather, as Attorney-in-fact
  
 for the individual investors listed below:
 Russell Carson
 Bruce Anderson 2004 Irrevocable Trust
 Andrew Paul
 Thomas McInerney
 Robert Minicucci
 Tony de Nicola
 Paul Queally
 Scott Mackesy
 Sanjay Swani
 Laura Van Buren
 Sean Traynor
 John Almeida, Jr.
 Eric Lee
 Jonathan Rather, IRA Charles Schwab & Co., Inc. CustodianExhibit 10.4

 Exhibit 10.4 
  
 THIRD AMENDED AND RESTATED SECURITY AGREEMENT 
  
 Dated as of March 29, 2005 
  
 from 
  
 The Grantors referred to herein 
  
 as Grantors 
  
 to

  
 Wells Fargo Bank, N.A. 
  
 as Collateral Agent 
  

 TABLE OF CONTENTS 
  

					
	 SECTION 1.
	  	Grant of Security	  	3
			
	 SECTION 2.
	  	Security for Obligations	  	8
			
	 SECTION 3.
	  	Grantors Remain Liable	  	9
			
	 SECTION 4.
	  	Delivery and Control of Security Collateral	  	9
			
	 SECTION 5.
	  	Delivery and Control of the Account Collateral; Maintaining the Collateral Account; Maintaining Electronic Chattel Paper, Transferable Records and Letter-of-Credit Rights and Giving Notice of
Commercial Tort Claims	  	10
			
	 SECTION 6.
	  	Investing of Amounts in the Collateral Account	  	11
			
	 SECTION 7.
	  	Release of Amounts	  	12
			
	 SECTION 8.
	  	Representations and Warranties	  	12
			
	 SECTION 9.
	  	Further Assurances	  	16
			
	 SECTION 10.
	  	As to Equipment and Inventory	  	17
			
	 SECTION 11.
	  	Insurance	  	17
			
	 SECTION 12.
	  	Place of Perfection; Records; Collection of Receivables	  	18
			
	 SECTION 13.
	  	As to Intellectual Property Collateral	  	19
			
	 SECTION 14.
	  	Voting Rights; Dividends; Etc.	  	21
			
	 SECTION 15.
	  	As to the Assigned Agreements	  	22
			
	 SECTION 16.
	  	Payments Under the Assigned Agreements	  	23
			
	 SECTION 17.
	  	Transfers and Other Liens; Additional Shares	  	23
			
	 SECTION 18.
	  	Collateral Agent Appointed Attorney-in-Fact	  	24
			
	 SECTION 19.
	  	Collateral Agent May Perform	  	24
			
	 SECTION 20.
	  	The Collateral Agent’s Duties	  	24
			
	 SECTION 21.
	  	Remedies	  	25
			
	 SECTION 22.
	  	Indemnity and Expenses.	  	28
			
	 SECTION 23.
	  	Amendments; Waivers; Additional Grantors; Etc.	  	28

  

 i 

					
	 SECTION 24.
	  	Notices, Etc.	  	29
			
	 SECTION 25.
	  	Continuing Security Interest; Assignments under the Third Amended Credit Agreement	  	29
			
	 SECTION 26.
	  	Release; Termination	  	29
			
	 SECTION 27.
	  	Security Interest Absolute	  	30
			
	 SECTION 28.
	  	Execution in Counterparts	  	31
			
	 SECTION 29.
	  	Mortgages	  	31
			
	 SECTION 30.
	  	Governing Law	  	32
			
	 SECTION 31.
	  	Intercreditor and Subordination Agreements	  	32

  

 ii 

 Schedules 
  

					
	 Schedule I
	  	-	    	Pledged Shares and Pledged Debt
	 Schedule II
	  	-	    	Assigned Agreements
	 Schedule III
	  	-	    	Locations of Equipment and Inventory
	 Schedule IV
	  	-	    	Jurisdiction of Organization and Federal Tax Identification Number
	 Schedule V
	  	-	    	Patents, Trademarks and Trade Names, Copyrights and Licenses
	 Schedule VI
	  	-	    	Securities Accounts
	 Schedule VII
	  	-	    	Commercial Tort Claims

  
 Exhibits 
  

					
	 Exhibit A
	  	-	    	Form of Security Agreement Supplement
	 Exhibit B
	  	-	    	Form of Consent and Agreement
	 Exhibit C
	  	-	    	Form of Intellectual Property Security Agreement
	 Exhibit D
	  	-	    	Form of Intellectual Property Security Agreement Supplement
	 Exhibit E
	  	-	    	Form of Securities Account Control Agreement

  

 iii 

 THIRD AMENDED AND RESTATED SECURITY AGREEMENT 
  
 This THIRD AMENDED AND RESTATED SECURITY AGREEMENT (this
“Agreement”) is dated as of March 29, 2005, among Interstate FiberNet, Inc., a Delaware corporation (the “Borrower”), ITC^ DeltaCom, Inc. (the “Parent”), the other Persons
listed on the signature pages hereto and the Additional Grantors (as defined in Section 23(b)) (the Borrower, the Parent, the Persons so listed and the Additional Grantors being, collectively, the “Grantors”) to Wells Fargo
Bank, N.A., as collateral agent (together with any successor collateral agent appointed pursuant to Article VIII of the Third Amended Credit Agreement (as hereinafter defined), the “Collateral Agent”) for the Secured Parties.
Any capitalized term used herein and not otherwise defined has the meaning set forth in the Third Amended Credit Agreement. 
  
 PRELIMINARY STATEMENTS: 
  
 1. The Borrower and the other loan parties named therein entered into a Credit Agreement dated as of April 5, 2000 (the “Original
ITCD Credit Agreement”), with the lender parties and the agents named therein, pursuant to which certain of the Grantors executed and delivered to the collateral agent named therein a Security Agreement, dated as of April
5, 2000 (the “Original Security Agreement”). 
  
 2. In order to restructure, continue, convert and consolidate the loans advanced to the Borrower by the lender parties under the Original ITCD Credit Agreement, the lender parties named therein, the loan parties named therein and the agents
named therein entered into (i) an Amended and Restated Credit Agreement, dated as of October 29, 2002 (the “First Amended ITCD Credit Agreement”), pursuant to which certain of the Grantors executed and delivered to the
collateral agent named therein the Amended and Restated Security Agreement, dated as of October 29, 2002 (the “Amended and Restated Security Agreement”) and (ii) a Second Amended and Restated Credit Agreement, dated as of
October 6, 2003 (the “Second Amended ITCD Credit Agreement”), pursuant to which certain of the Grantors executed and delivered to the collateral agent named therein the Second Amended and Restated Security Agreement, dated as
of October 6, 2003 (the “Second Amended and Restated Security Agreement”). 
  
 3. In connection with the Second Amended ITCD Credit Agreement, the Borrower and the other loan parties named therein entered into a Credit Agreement,
dated October 6, 2003 (the “Original Second Lien Credit Agreement”), pursuant to which certain of the loan parties executed and delivered to the collateral agent named therein a Security Agreement, dated as of October 6, 2003
(the “Original Second Lien Security Agreement”). 
  
 4. The parties to the Second Amended ITCD Credit Agreement have entered into the Third Amended and Restated Credit Agreement dated as of March 29, 2005 (the “Third Amended Credit Agreement”),
and in connection therewith, each Grantor is entering into this Agreement in order to grant and to reaffirm, acknowledge, confirm and continue its grant to the Collateral Agent for the ratable benefit of the Secured Parties of a security interest in
substantially all of its personal property and fixtures now owned or hereafter acquired. 
  

					
	 	  	 	  	 

 5. In connection with the Third Amended Credit Agreement, the parties to the Original Second Lien Credit
Agreement, have entered into the Amended and Restated Credit Agreement, dated March 29, 2005 (the “First Amended Second Lien Credit Agreement”), and in connection therewith, each grantor thereunder is entering into an Amended
and Restated Security Agreement, dated March 29, 2005 in order to reaffirm, acknowledge confirm and continue its grant to the collateral agent named therein of a security interest in substantially all of its personal property and fixtures now owned
or hereafter acquired. 
  
 6. In connection with the Third Amended
Credit Agreement and the First Amended Second Lien Credit Agreement, the Borrower and the other loan parties named therein have entered into a Credit Agreement, dated March 29, 2005 (the “Third Lien Credit Agreement”),
pursuant to which certain of the loan parties have executed and delivered to the collateral agent named therein a Security Agreement, dated as of March 29, 2005 (the “Third Lien Security Agreement”). 
  
 7. In order to, among other things, confirm the relative priorities of the
Liens on the Collateral (i) the parties to the Third Amended Credit Agreement and the parties to the First Amended Second Lien Credit Agreement are entering into a Consent and First Amendment to the Second Lien Intercreditor and Subordination
Agreement, and (ii) the parties to the Third Amended Credit Agreement, the First Amended Second Lien Credit Agreement and the Third Lien Credit Agreement are entering into the Third Lien Intercreditor and Subordination Agreement (collectively, the
“Intercreditor and Subordination Agreements”); 
  
 8. Each Grantor is the owner of the shares (the “Initial Pledged Shares”) of capital stock set forth opposite such Grantor’s name on and as otherwise described in Part I of Schedule I hereto and issued by the
corporations named therein and of the indebtedness (the “Initial Pledged Debt”) set forth opposite such Grantor’s name on and as otherwise described in Part II of Schedule I hereto and issued by the obligors named
therein. 
  
 9. The Borrower maintains a collateral securities
account, Account No.14980702 (the “Collateral Account”), with Wells Fargo at its office at N9303-120, Sixth Street and Marquette Avenue, Minneapolis, MN 55479 and in the name of the Collateral Agent and under the sole control
and dominion of the Collateral Agent and subject to the terms of this Agreement and the Intercreditor and Subordination Agreements. 
  
 10. The Parent has security entitlements (the “Pledged Security Entitlements”) with respect to all the financial assets (the
“Pledged Financial Assets”) credited from time to time to the Parent’s accounts as otherwise described in Schedule VI (each a “Securities Account” and collectively the “Securities
Accounts”). 
  
 11. It is a condition precedent to
the execution and delivery of the Third Amended Credit Agreement that the Grantors shall have granted the security interest and made the pledge contemplated by this Agreement. 
  
 12. Each Grantor shall derive substantial direct and indirect benefit from the transactions contemplated by the Loan
Documents. 
  

					
	 	  	2	  	 

 13. Unless otherwise defined in this Agreement or in the Third Amended Credit Agreement, terms defined in
Article 8 or 9 of the Uniform Commercial Code in effect in the State of New York (“N.Y. Uniform Commercial Code”) and/or in the Federal Book Entry Regulations (as defined below) are used in this Agreement as such terms are
defined in such Article 8 or 9 and/or the Federal Book Entry Regulations. The term “Federal Book Entry Regulations” means (a) the federal regulations contained in Subpart B (“Treasury/Reserve Automated Debt Entry
System (TRADES)”) governing book-entry securities consisting of U.S. Treasury bonds, notes and bills and Subpart D (“Additional Provisions”) of 31 C.F.R. Part 357, 31 C.F.R. § 357.2, § 357.10 through
§ 357.14 and § 357.41 through § 357.44 and (b) to the extent substantially identical to the federal regulations referred to in clause (a) above (as in effect from time to time), the federal regulations governing other book-entry
securities. 
  
 NOW, THEREFORE, in consideration of the premises
and in order to induce the Lenders to enter into the Third Amended Credit Agreement, each Grantor hereby agrees with the Collateral Agent for the ratable benefit of the Secured Parties that the Second Amended and Restated Security Agreement shall be
amended and restated in its entirety as follows: 
  
 SECTION 1.
Grant of Security. Subject to the terms and conditions of the Intercreditor and Subordination Agreements, each Grantor hereby pledges and ratifies, acknowledges, confirms and continues its pledge to the Collateral Agent for the ratable
benefit of the Secured Parties (subject to the terms of this Agreement), and hereby grants and ratifies, acknowledges, confirms and continues its grant to the Collateral Agent for the ratable benefit of the Secured Parties a security interest in,
such Grantor’s right, title and interest in and to the following, in each case as to each type of property described below, whether now owned or hereafter acquired by such Grantor, wherever located, and whether now or hereafter existing or
arising (collectively, the “Collateral”): 
  
 (a) all equipment in all of its forms, all fixtures and all parts thereof and all accessions thereto (any and all such equipment, fixtures, parts and accessions being the “Equipment”);

  
 (b) all inventory in all of its forms
including, without limitation, (i) all raw materials and work in process therefor, finished goods thereof and materials used or consumed in the manufacture, production, preparation or shipping thereof, (ii) goods in which such Grantor has an
interest in mass or a joint or other interest or right of any kind (including, without limitation, goods in which such Grantor has an interest or right as consignee) and (iii) goods that are returned to or repossessed or stopped in transit by such
Grantor) and all accessions thereto and products thereof and documents therefor (any and all such inventory, accessions, products and documents being the “Inventory”); 
  
 (c) all accounts, documents, chattel paper, instruments,
deposit accounts, general intangibles and other obligations of any kind, whether or not arising out of or in connection with the sale or lease of goods or the rendering of services and whether or not earned by performance, and all rights now or
hereafter existing in and to all security agreements, leases and other contracts securing or otherwise relating to any such accounts, chattel paper, documents, instruments, deposit accounts, general intangibles or 

  

					
	 	  	3	  	 

 
obligations (any and all such accounts, chattel paper, instruments, deposit accounts, general intangibles and obligations, to the extent not referred to in
clause (d), (e) or (f) below, being the “Receivables”); 
  
 (d) the following (the “Security Collateral”): 
  
 (i) the Initial Pledged Shares and the certificates, if any, representing the Initial Pledged Shares, and
all dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Initial Pledged Shares; 
  
 (ii) the Initial Pledged Debt and the instruments, if any,
evidencing the Initial Pledged Debt, and all interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the Initial Pledged Debt; 
  
 (iii) all additional shares of capital stock in other
corporations from time to time acquired by such Grantor in any manner (such shares, together with the Initial Pledged Shares, being the “Pledged Shares”) and the certificates, if any, representing such additional shares, and
all dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such shares; 
  
 (iv) all additional indebtedness from time to time owed to such Grantor (such indebtedness, together with
the Initial Pledged Debt, being the “Pledged Debt”) and the instruments, if any, evidencing such indebtedness, and all interest, cash, instruments and other property from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such indebtedness; 
  
 (v) the Securities Accounts, all Pledged Security Entitlements with respect to all Pledged Financial Assets from time to time credited to the Securities Accounts, and all Pledged Financial Assets, and all dividends,
interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such Pledged Security Entitlements or such Pledged Financial Assets; and 
  
 (vi) all other investment property (including, without
limitation, all (A) securities, whether certificated or uncertificated, (B) security entitlements, (C) securities accounts, (D) commodity contracts and (E) commodity accounts) in which such Grantor has now, or acquires from time to time hereafter,
any right, title or interest in any manner and the certificates or instruments, if any, representing or evidencing such investment property, and all dividends, interest, distributions, value, cash, instruments and other property from time to time
received, receivable or otherwise distributed in respect of or in exchange for any or all of such investment property; 
  

					
	 	  	4	  	 

 (e) all contracts and agreements between any Grantor and one or more additional parties
(including, without limitation, each of the agreements listed on Schedule II hereto, each of the agreements set forth on the supplemental list of Material Contracts delivered by the Parent pursuant to the Third Amended Credit Agreement (the
“Supplemental List”), and each Hedge Agreement to which such Grantor is now or may hereafter become a party, in each case as such agreements may be amended, amended and restated, supplemented or otherwise modified from time
to time (collectively, the “Assigned Agreements”)), including, without limitation, (i) all rights of such Grantor to receive moneys due and to become due under or pursuant to such contracts and agreements, (ii) all rights of
such Grantor to receive proceeds of any insurance, indemnity, warranty or guaranty with respect to such contracts and agreements, (iii) claims of such Grantor for damages arising out of or for breach of or default under such contracts and agreements
and (iv) the right of such Grantor to terminate such contracts and agreements, to perform thereunder and to compel performance and otherwise exercise all remedies thereunder (all such Collateral being the “Agreement
Collateral”); 
  
 (f) the following
(collectively, the “Account Collateral”): 
  
 (i) the Collateral Account, all financial assets from time to time credited to the Collateral Account (including, without limitation, all Cash Equivalents from time to time credited to the Collateral Account) and all
dividends interest, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such financial assets; 
  
 (ii) all deposit accounts of such Grantor from time to time,
all funds held therein and all certificates and instruments, if any, from time to time representing or evidencing such deposit accounts, other than any deposit account (including funds held therein and all certificates or instruments representing or
evidencing such deposit accounts) that is used solely for the purpose of holding or making payment of payroll or employee incentive plans (“Payroll Accounts”); 
  
 (iii) all notes, certificates of deposit, deposit accounts, checks and other instruments from time to time
delivered to or otherwise possessed by the Collateral Agent for or on behalf of such Grantor, including, without limitation, those delivered or possessed in substitution for or in addition to any or all of the then existing Account Collateral; and

  
 (iv) all interest, dividends, cash,
instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the then existing Account Collateral; and 
  
 (g) the following (collectively, the “Intellectual Property Collateral”):

  
 (i) all United States, international and
foreign patents, patent applications and statutory invention registrations, including, without limitation, the patents and patent applications set forth in Schedule V hereto (as such 

  

					
	 	  	5	  	 

 
Schedule V may be supplemented from time to time by supplements to this Agreement, each such supplement being in substantially the form of Exhibit D hereto
(an “IP Security Agreement Supplement”), executed and delivered by such Grantor to the Collateral Agent from time to time), together with all reissues, divisions, continuations, continuations-in-part, extensions and
reexaminations thereof, all inventions therein, all rights therein provided by international treaties or conventions and all improvements thereto, and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto
(the “Patents”); 
  
 (ii)
all trademarks (including, without limitation, service marks), certification marks, collective marks, trade dress, logos, domain names, product configurations, trade names, business names, corporate names and other source identifiers, whether or not
registered, whether currently in use or not, including, without limitation, all common law rights and registrations and applications for registration thereof, including, without limitation, the trademark registrations and trademark applications set
forth in Schedule V hereto (as such Schedule V may be supplemented from time to time by IP Security Agreement Supplements executed and delivered by such Grantor to the Collateral Agent from time to time), and all other marks registered in the U.S.
Patent and Trademark Office or in any office or agency of any State or Territory of the United States or any foreign country (but excluding any United States intent-to-use trademark application prior to the filing and acceptance of a Statement of
Use or an Amendment to allege use in connection therewith to the extent that a valid security interest may not be taken in such an intent-to-use trademark application under applicable law), and all rights therein provided by international treaties
or conventions, all reissues, extensions and renewals of any of the foregoing, together in each case with the goodwill of the business connected therewith and symbolized thereby, and all rights corresponding thereto throughout the world and all
other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto (the “Trademarks”); 
  
 (iii) all copyrights, copyright applications, copyright registrations and like protections in each work of authorship, whether statutory
or common law, whether published or unpublished, any renewals or extensions thereof, all copyrights of works based on, incorporated in, derived from, or relating to works covered by such copyrights, including, without limitation, the copyright
registrations and copyright applications set forth in Schedule V hereto (as such Schedule V may be supplemented from time to time by IP Security Agreement Supplements executed and delivered by such Grantor to the Collateral Agent from time to time),
together with all rights corresponding thereto throughout the world and all other rights of any kind whatsoever of such Grantor accruing thereunder or pertaining thereto (the “Copyrights”); 
  
 (iv) all confidential and proprietary information,
including, without limitation, know-how, trade secrets, manufacturing and production processes and 

  

					
	 	  	6	  	 

 
techniques, inventions, research and development information, technical data, financial, marketing and business data, pricing and cost information, business
and marketing plans and customer and supplier lists and information (the “Trade Secrets”); 
  
 (v) all computer software programs and databases (including, without limitation, source code, object code and all related applications and
data files), firmware and documentation and materials relating thereto, and all rights with respect to the foregoing, together with any and all options, warranties, service contracts, program services, test rights, maintenance rights, improvement
rights, renewal rights and indemnifications and any substitutions, replacements, additions or model conversions of any of the foregoing (the “Computer Software”); 
  
 (vi) all license agreements, permits, authorizations and franchises, whether with respect to the Patents,
Trademarks, Copyrights, Trade Secrets or Computer Software or with respect to the patents, trademarks, copyrights, trade secrets, computer software or other proprietary right of any other Person, including, without limitation, the license agreements
set forth in Schedule V hereto (as such Schedule V may be supplemented from time to time by IP Security Agreement Supplements executed and delivered by such Grantor to the Collateral Agent from time to time), and all income, royalties and other
payments now or hereafter due and/or payable with respect thereto, subject, in each case, to the terms of such license agreements, permits, authorizations and franchises (the “Licenses”); and 
  
 (vii) any and all claims for damages for past, present and
future infringement, misappropriation or breach with respect to the Patents, Trademarks, Copyrights, Trade Secrets, Computer Software or Licenses together with the right, but not the obligation, to sue for and collect, or otherwise recover, such
damage; 
  
 (h) all Goods; 
  
 (i) all Commercial Tort Claims (including, without
limitation, the Commercial Tort Claims set forth on Schedule VII hereto); 
  
 (j) all Letter-of-Credit Rights; 
  
 (k) all other tangible and intangible property (personal, real or mixed) of whatever nature whether or not covered by Article 9 of the N.Y. Uniform Commercial Code; 
  
 (l) all books and records (including, without limitation,
customer lists, credit files, printouts and other computer output materials and records) of such Grantor pertaining to any of the foregoing; and 
  

					
	 	  	7	  	 

 (m) all proceeds, and Supporting Obligations related to, of any and all of the Collateral
(including, without limitation, proceeds that constitute property of the types described in clauses (a) through (l) of this Section 1 and this clause (m)) and, to the extent not otherwise included, all (i) payments under insurance (whether or not
the Collateral Agent is the loss payee thereof), or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral and (ii) cash. 
  
 Notwithstanding anything in this Section 1 or any other provision of this
Agreement to the contrary, the Collateral shall not include (i) any general intangibles or other rights or property arising under or subject to any contracts, instruments, licenses, permits or other documents (including, without limitation, the
Assigned Agreements referred to in the third sentence of Section 8(g)) as to which the grant of a security interest would constitute a violation of a valid and enforceable restriction (whether arising by contract or under law or governmental
regulation) in favor of a third party (including a governmental authority) on such grant or a violation of law or governmental regulation, unless and until any required consents shall have been obtained, or (ii) any equipment and related computer
programs, documentation, licenses and sublicenses, and any other property, and any additions, attachments and accessions to, and replacements of, any of the foregoing, any agreements with the lessor or supplier of any or all of the foregoing and
purchase orders submitted to such supplier, and any products and proceeds of any of the foregoing, pledged as collateral to secure, or otherwise subject to any other Capitalized Lease constituting Surviving Debt as of the Third Amendment Effective
Date. 
  
 SECTION 2. Security for Obligations. This
Agreement secures or continues the security, in the case of each Grantor, the payment of all Obligations of such Grantor now or hereafter existing under the Loan Documents, whether direct or indirect, absolute or contingent, and whether for
principal, reimbursement obligations, interest, fees, premiums, penalties, indemnifications, contract causes of action, costs, expenses or otherwise (all such Obligations being the “Secured Obligations”). 
  
 The parties hereto intend to maintain the validity, effectiveness,
enforceability, perfection and priority of the Collateral Documents delivered under the Original ITCD Credit Agreement, the Amended and Restated Credit Agreement, the Second Amended ITCD Credit Agreement, the GECC Capital Lease and the NTFC Capital
Lease (the “Original Security Documents”) and this Agreement is intended, inter alia, to extend the obligations and indebtedness secured by the security interests and pledges created and affected by the Original
Security Documents, in each case, except as specifically provided herein, including, without limitation, in the last paragraph of Section 1, without terminating, limiting, modifying or otherwise affecting the validity, effectiveness, enforceability,
perfection and priority of the security interests or the pledges created and affected in respect thereof. To the extent that any security interest or pledge granted pursuant to the Original Security Documents relates to collateral in which the
Grantors have previously granted a security interest to the Collateral Agent, this Agreement shall, except as specifically provided herein, including, without limitation, in the last paragraph of Section 1, confirm the validity, effectiveness,
enforceability and continuation of such security interest or pledge as against the Grantors. All of the terms and 

  

					
	 	  	8	  	 

 
provisions of the Original Security Documents are hereby confirmed and ratified in all respects, except as specifically modified herein. 
  
 Without limiting the generality of the foregoing, this Agreement secures, as
to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and would be owed by such Grantor to any Secured Party under the Loan Documents but for the fact that they are unenforceable or not allowable due to the
existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party. 
  
 SECTION 3. Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each Grantor shall remain liable under the contracts and agreements included in such Grantor’s Collateral to the
extent set forth therein to perform all of its duties and obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the Collateral Agent of any of the rights hereunder shall not release any Grantor
from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) no Secured Party shall have any obligation or liability under the contracts and agreements included in the Collateral by reason of this
Agreement or any other Loan Document, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to collect or enforce any claim for payment assigned hereunder. 
  
 SECTION 4. Delivery and Control of Security Collateral 
  
 (a) All certificates or instruments representing or
evidencing Security Collateral shall be delivered to and held by or on behalf of the Collateral Agent pursuant hereto and the Intercreditor and Subordination Agreements and shall be in suitable form for transfer by delivery, or shall be accompanied
by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Collateral Agent. The Collateral Agent shall have the right, at any time in its discretion and without notice to any Grantor, to transfer
to or to register in the name of the Collateral Agent or any of its nominees any or all of the Security Collateral, subject only to the revocable rights specified in Section 14(a). In addition, the Collateral Agent shall have the right at any time
to exchange certificates or instruments representing or evidencing Security Collateral for certificates or instruments of smaller or larger denominations. Also, the Collateral Agent shall have the right at any time to convert Security Collateral
consisting of financial assets credited to the securities account to Security Collateral consisting of financial assets held directly by the Collateral Agent, and to convert Security Collateral consisting of financial assets held directly by the
Collateral Agent to Security Collateral consisting of financial assets credited to the securities account. 
  
 (b) With respect to any Security Collateral in which any Grantor has any right, title or interest and that constitutes an uncertificated
security, such Grantor shall cause the issuer thereof either (i) to register the Collateral Agent as the registered owner of such security or (ii) to agree in writing with such Grantor and the Collateral Agent that such issuer shall comply with
instructions with respect to such security originated by the Collateral Agent without further consent of such Grantor, such agreement to be in form and substance satisfactory to the Collateral Agent. 
  

					
	 	  	9	  	 

 (c) With respect to any Security Collateral in which any Grantor has any right, title or
interest and that constitutes a security entitlement, such Grantor shall cause the securities intermediary with respect to such security entitlement either (i) to identify in its records the Collateral Agent as the entitlement holder of such
security entitlement against such securities intermediary or (ii) to agree in writing with such Grantor and the Collateral Agent that such securities intermediary shall comply with entitlement orders (that is, notifications communicated to such
securities intermediary directing transfer or redemption of the financial asset to which such Grantor has a security entitlement) originated by the Collateral Agent without further consent of such Grantor, such agreement to be substantially in the
form of Exhibit E attached hereto or otherwise in form and substance satisfactory to the Collateral Agent (such agreement being a “Securities Account Control Agreement”). 
  
 (d) With respect to any Security Collateral in which any
Grantor has any right, title or interest and that constitutes a commodity contract, such Grantor shall cause the commodity intermediary with respect to such commodity contract to agree in writing with such Grantor and the Collateral Agent that such
commodity intermediary shall apply any value distributed on account of such commodity contract as directed by the Collateral Agent without further consent of such Grantor, such agreement to be in form and substance satisfactory to the Collateral
Agent (such agreement being a “Commodity Account Control Agreement,” and all such agreements together with all Securities Account Control Agreements, being collectively, the “Control Agreements”).

  
 (e) No Grantor shall change or add any
securities intermediary or commodity intermediary that maintains any securities account or commodity account in which any of the Collateral is credited or carried, or change or add any such securities account or commodity account, in each case
without first complying with the above provisions of this Section 4 in order to perfect the security interest granted hereunder in such Collateral. 
  
 SECTION 5. Delivery and Control of the Account Collateral; Maintaining the Collateral Account; Maintaining Electronic Chattel Paper, Transferable
Records and Letter-of-Credit Rights and Giving Notice of Commercial Tort Claims. 
  
 (a) Promptly after opening an account (other than a Payroll Account) with a bank or other financial institution not subject to an account
control agreement, each Grantor shall cause the execution and delivery of an account control agreement or cash management agreement, as applicable, with such bank or financial institution in favor of the Collateral Agent, in form and substance
reasonably satisfactory to the Collateral Agent. 
  

					
	 	  	10	  	 

 (b) So long as any Advance or any other Obligation of any Loan Party under any Loan
Document shall remain unpaid, any Secured Hedge Agreement shall be in effect or any Lender shall have any Commitment under the Third Amended Credit Agreement: 
  

(i) The Borrower shall maintain the Collateral Account with the Collateral Agent or another commercial bank acceptable to the
Collateral Agent and that has entered into a Securities Account Control Agreement (the Collateral Agent or any bank with which the Collateral Account is maintained being a “Collateral Bank”). 
  
 (ii) It shall be a term and condition of the Collateral
Account, notwithstanding any term or condition to the contrary in any other agreement relating to the Collateral Account, as the case may be, and except as otherwise provided by the provisions of Sections 7 and 21, that no amount (including interest
on Cash Equivalents credited thereto) shall be paid or released to or for the account of, or withdrawn by or for the account of, the Borrower or any other Person from the Collateral Account. 
  
 (iii) Each Grantor shall deposit in the Collateral Account
or pay to the Collateral Agent for deposit in the Collateral Account all funds contemplated by Section 2.05(b)(ii) of the Third Amended Credit Agreement in accordance with the terms thereof. 
  
 (iv) During the continuation of an Event of Default,
promptly upon the request of the Administrative Agent, each Grantor will maintain (i) all Electronic Chattel Paper, Investment Property and Letter-of-Credit Rights so that the Administrative Agent has control of such Collateral in the manner
specified in Sections 9-105, 9-106 and 9-107, respectively, of the UCC, (ii) all transferable records so that the Administrative Agent has control of the transferable records in the manner specified in Section 16 of the Uniform Electronic
Transactions Act, as in effect in the jurisdiction governing such transferable record (“UETA”). 
  
 (v) Each Grantor will give prompt notice to the Administrative Agent of any Commercial Tort Claim individually in excess of $2,000,000
that may arise in the future and will promptly execute or otherwise authenticate a supplement to this Agreement, and otherwise take all necessary action, to subject such Commercial Tort Claim to the first priority security interest created under
this Agreement. 
  
 SECTION 6. Investing of Amounts in the
Collateral Account. The Collateral Agent shall, subject to the provisions of Sections 7 and 21, from time to time direct the Collateral Bank to (a) invest amounts received with respect to the Collateral Account in such Cash Equivalents credited
to the Collateral Account as the Borrower may select and the Collateral Agent may approve and (b) invest interest paid on the Cash Equivalents referred to in clause (a) above, and reinvest other proceeds of any such Cash Equivalents that may mature
or be sold, in each case in such Cash Equivalents credited to the Collateral Account as the Borrower may select and the Collateral Agent may approve. Interest and proceeds that are not invested or reinvested in Cash Equivalents as provided above
shall be deposited and held in a deposit account with the Collateral Bank in the name of the Collateral Agent and under the sole control and dominion of the Collateral Agent, such deposit account to be deemed to constitute part of the 

  

					
	 	  	11	  	 

 
Collateral Account. In addition, the Collateral Agent shall have the right at any time to direct the Collateral Bank to exchange such Cash Equivalents for
similar Cash Equivalents of smaller or larger determinations, or for other Cash Equivalents, credited to the Collateral Account. 
  
 SECTION 7. Release of Amounts. So long as no Default shall have occurred and be continuing, the Collateral Agent shall direct the applicable
Collateral Bank to pay and release to the Borrower or at its order or, at the request of the Borrower, to the Administrative Agent to be applied to the Obligations of the Borrower under the Loan Documents, such amount, if any, as is then on deposit
in the Collateral Account, as the case may be, to the extent permitted to be released under the terms of the Third Amended Credit Agreement. 
  
 SECTION 8. Representations and Warranties. Each Grantor represents and warrants as follows: 
  
 (a) All of the Equipment and Inventory of such Grantor are
located at the places specified therefor in Schedule III hereto or at such other places as such Grantor shall have specified in writing to the Collateral Agent (and upon notification to the Collateral Agent of such additional places, Schedule III
shall be automatically amended to include such other places). The jurisdiction of organization of such Grantor is specified in Schedule IV hereto, as such Schedule IV may be amended from time to time pursuant to Section 12(a). Such Grantor’s
federal tax identification number is set forth opposite such Grantor’s name in Schedule IV hereto. All Security Collateral consisting of certificated securities and instruments has been delivered to the Collateral Agent. None of the Receivables
or Agreement Collateral is evidenced by a promissory note or other instrument that has not been delivered to the Collateral Agent. 
  
 (b) Such Grantor is the legal and beneficial owner of the Collateral of such Grantor free and clear of any Lien, claim, option or right of
others, except for the security interest created under this Agreement or permitted under the Third Amended Credit Agreement or the First Amended Second Lien Credit Agreement and except for rights of others under any License. No effective financing
statement or other instrument similar in effect covering all or any part of such Collateral or listing such Grantor or any trade name of such Grantor as debtor is on file in any recording office, except such as may have been filed in favor of the
Collateral Agent relating to the Loan Documents or as otherwise permitted under the Third Amended Credit Agreement or the First Amended Second Lien Credit Agreement. Such Grantor has the trade names listed on Schedule V hereto. 
  
 (c) Such Grantor has exclusive possession and control of the
Equipment and Inventory other than Inventory stored at any leased premises or warehouse for which a landlord’s or warehouseman’s agreement, in form and substance reasonably satisfactory to the Collateral Agent, is in effect and which
leased premises or warehouse is so indicated by an asterisk on Schedule III hereto, or otherwise specified by such Grantor in writing to the Collateral Agent (and upon notification to the Collateral Agent of such additional leased premises or
warehouse, Schedule III shall be automatically amended to include such other leased premises or warehouse with an asterisk designation). 
  

					
	 	  	12	  	 

 (d) The Pledged Shares pledged by such Grantor hereunder have been duly authorized and
validly issued and are fully paid and non-assessable. The Pledged Debt pledged by such Grantor hereunder has been duly authorized, authenticated or issued and delivered, is the legal, valid and binding obligation of the issuers thereof, is evidenced
by one or more promissory notes (which notes have been delivered to the Collateral Agent) and is not in default. 
  
 (e) The Initial Pledged Shares constitute the percentage of the issued and outstanding shares of stock of the issuers thereof indicated on
Schedule I hereto as of the date hereof. The Initial Pledged Debt constitutes all of the outstanding indebtedness owed to such Grantor by the issuers thereof and is outstanding, as of the date hereof, in the principal amount indicated on Schedule I
hereto as of the date hereof. 
  
 (f) All of the
investment property owned by such Grantor as of the date hereof is listed on Schedule I hereto. 
  
 (g) The Assigned Agreements to which such Grantor is a party, true and complete copies of which (other than the Hedge Agreements) have
been furnished to each Secured Party, have been duly authorized, executed and delivered by all parties thereto, are in full force and effect and are binding upon and enforceable against all parties thereto in accordance with their terms. There
exists no default under any Assigned Agreement to which such Grantor is a party by any party thereto. Each Grantor shall use its reasonable best efforts to obtain, (x) on or prior to 120 days from the date hereof, a consent from each party to the
Assigned Agreements listed on Part A to Schedule II hereto to which such Grantor is a party and (y) within 120 days of delivery of the Supplemental List, a consent from each party to the Assigned Agreements listed therein to which such Grantor is a
party (provided, that the Collateral Agent may, in its sole discretion, waive the requirements of this provision with respect to any such Assigned Agreement), all in substantially the form of Exhibit B hereto or otherwise in form and
substance reasonably satisfactory to the Collateral Agent, to the assignment of the Agreement Collateral to the Collateral Agent pursuant to this Agreement. Nothing herein shall be construed to require any Grantor to give additional consideration of
any kind under any Assigned Agreement in connection with obtaining of any consents under this Section 8(g). 
  
 (h) All filings and other actions necessary or desirable to perfect and protect the security interest in the Collateral of such Grantor
created under this Agreement have been duly made or taken and are in full force and effect or have been delivered to the Collateral Agent for filing or other appropriate action, and this Agreement creates in favor of the Collateral Agent for the
benefit of the Secured Parties a valid and, when such filings and other actions have been completed, perfected first priority security interest in the Collateral of such Grantor, securing the payment of the Secured Obligations. 
  
 (i) No authorization or approval or other action by, and no
notice to or filing with, any governmental authority or regulatory body or any other third party is required for (i) the grant by such Grantor of the pledge and security interest granted hereunder or for the execution, delivery or performance of
this Agreement by such Grantor, (ii) the 

  

					
	 	  	13	  	 

 
perfection or maintenance of the pledge and security interest created hereunder (including the first priority nature of such pledge or security interest,
subject to Permitted Liens), except for the filing of financing statements and amendments to financing statements under the Uniform Commercial Code, which financing statements and amendments to financing statements have been or will be duly filed
and are or will be in full force and effect, the recordation of the Intellectual Property Security Agreements referred to in Section 13(f) with the U.S. Patent and Trademark Office and the U.S. Copyright Office, which agreements and any
amendments thereto have been or will be duly recorded and are or will be in full force and effect, the actions described in Section 4 with respect to Security Collateral, which actions have been or will be taken and are or will be in full force and
effect, and the actions contemplated by the Third Amended Credit Agreement, or (iii) the exercise by the Collateral Agent of its voting or other rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to this
Agreement, except as may be required in connection with the disposition of any portion of the Security Collateral by laws affecting the offering and sale of securities generally. 
  
 (j) The Inventory that has been produced or distributed by such Grantor has been produced in compliance with
all requirements of applicable law, including, without limitation, the Fair Labor Standards Act. 
  
 (k) As to itself and its Intellectual Property Collateral: 
  
 (i) The rights of such Grantor in or to the Intellectual Property Collateral do not conflict with,
misappropriate or infringe upon the intellectual property rights of any third party, and no claim has been asserted that the use of such Intellectual Property Collateral does or may infringe upon the intellectual property rights of any third party.

  
 (ii) Such Grantor is the exclusive owner of
the entire and unencumbered right, title and interest in and to the Intellectual Property Collateral and is entitled to use all such Intellectual Property Collateral without limitation, subject only to the license terms of the Licenses. 

 
 (iii) The Intellectual Property Collateral set forth on
Schedule V hereto includes all of the patents, patent applications, trademark registrations and applications, copyright registrations and applications and Licenses, other than commercial off-the-shelf software licenses, owned by such Grantor, except
as permitted under the Third Amended Credit Agreement or the First Amended Second Lien Credit Agreement. 
  
 (iv) The Intellectual Property Collateral is subsisting and has not been adjudged invalid or unenforceable in whole or part and, to the
best of such Grantor’s knowledge, is valid and enforceable. Such Grantor is not aware of any uses of any item of Intellectual Property Collateral that could be expected to lead to such item becoming invalid or unenforceable. 
  

					
	 	  	14	  	 

 (v) Such Grantor has made or performed all commercially reasonable filings, recordings
and other acts and has paid all required fees and taxes to maintain and protect its interest in each and every material item of Intellectual Property Collateral in full force and effect throughout the world, and to protect and maintain its interest
therein, including without limitation, any recordation of any of its interests in the Patents and Trademarks with the U.S. Patent and Trademark Office and in corresponding national and international patent offices, and any recordation of any of its
interests in the Copyrights with the U.S. Copyright Office and in corresponding national and international copyright offices. Such Grantor has used commercially reasonable statutory notice in connection with its use of each material patent,
trademark and copyright of the Intellectual Property Collateral. 
  
 (vi) No action, suit, investigation, litigation or proceeding has been asserted or is pending or, to the best of such Grantor’s knowledge, threatened against such Grantor (i) based upon or challenging or seeking
to deny or restrict the use of any of the Intellectual Property Collateral or (ii) alleging that any services provided by, processes used by, or products manufactured or sold by, such Grantor infringe upon or misappropriate any patent, trademark,
copyright or any other proprietary right of any third party. To the best of such Grantor’s knowledge, no Person is engaging in any activity that infringes upon or misappropriates the Intellectual Property Collateral or upon the rights of such
Grantor therein. Except as set forth on Schedule V hereto, such Grantor has not granted any license, release, covenant not to sue, non-assertion assurance or other right to any Person with respect to any part of the Intellectual Property Collateral.
The consummation of the transactions contemplated by the Loan Documents shall not result in the termination or impairment of any of the Intellectual Property Collateral. 
  
 (vii) With respect to each License: (A) such License is valid and binding and in full force and effect and
represents the entire agreement between the respective licensor and licensee with respect to the subject matter of such License; (B) such License shall not cease to be valid and binding and in full force and effect on terms identical to those
currently in effect as a result of the rights and interest granted herein, nor shall the grant of such rights and interest constitute a breach or default under such License or otherwise give the licensor or licensee a right to terminate such
License; (C) such Grantor has not received any notice of termination or cancellation under such License; (D) such Grantor has not received any notice of a breach or default under such License, which breach or default has not been cured; (E) such
Grantor has not granted to any other third party any rights, adverse or otherwise, under such License (except to the extent that sublicensing is permitted); and (F) neither such Grantor nor any other party to such License is in breach or default in
any material respect, and no event has occurred that, with notice or lapse of time or both, would constitute such a breach or default or permit termination, modification or acceleration under such License. 
  

					
	 	  	15	  	 

 (viii) To the best of such Grantor’s knowledge, (A) none of the Trade Secrets of
such Grantor has been used, divulged, disclosed or appropriated to the detriment of such Grantor for the benefit of any other Person other than such Grantor; (B) no employee, independent contractor or agent of such Grantor has misappropriated any
trade secrets of any other Person in the course of the performance of his or her duties as an employee, independent contractor or agent of such Grantor; and (C) no employee, independent contractor or agent of such Grantor is in default or breach of
any term of any employment agreement, non-disclosure agreement, assignment of inventions agreement or similar agreement or contract relating in any way to the protection, ownership, development, use or transfer of such Grantor’s Intellectual
Property Collateral. 
  
 SECTION 9. Further Assurances.

  
 (a) Each Grantor agrees that from time to
time, at the expense of such Grantor, such Grantor shall promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable, or that the Collateral Agent may request, in order to
perfect and protect any pledge or security interest granted or purported to be granted by such Grantor hereunder or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral of such
Grantor. Without limiting the generality of the foregoing, each Grantor shall promptly, with respect to Collateral of such Grantor: (i) mark conspicuously each chattel paper included in Receivables and, at the request of the Collateral Agent, each
of its records pertaining to such Collateral with a legend, in form and substance reasonably satisfactory to the Collateral Agent, indicating that such chattel paper or Collateral is subject to the security interest granted hereby; (ii) if any such
Collateral shall be evidenced by a promissory note or other instrument or chattel paper, deliver and pledge to the Collateral Agent hereunder such note or instrument or chattel paper duly indorsed and accompanied by duly executed instruments of
transfer or assignment, all in form and substance reasonably satisfactory to the Collateral Agent; (iii) file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as may be necessary or desirable,
or as the Collateral Agent may request, in order to perfect and preserve the security interest granted or purported to be granted by such Grantor hereunder; (iv) deliver and pledge to the Collateral Agent for the benefit of the Secured Parties
certificates representing Security Collateral that constitutes certificated securities, accompanied by undated stock or bond powers executed in blank; and (v) deliver to the Collateral Agent evidence that all other action that the Collateral Agent
may deem reasonably necessary or desirable in order to perfect and protect the security interest created by such Grantor under this Agreement has been taken. 
  

(b) Each Grantor hereby authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments
thereto, relating to all or any part of the Collateral of such Grantor. Such financing statements may describe the collateral covered thereby by the words “all assets of the Debtor whether now owned or hereafter acquired” or words of
similar effect. A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be 

  

					
	 	  	16	  	 

 
sufficient as a financing statement where permitted by law. Each Grantor ratifies its authorization for the Collateral Agent to have filed such financing
statements, continuation statements or amendments filed prior to the date hereof. 
  
 (c) Each Grantor shall furnish to the Collateral Agent from time to time statements and schedules further identifying and describing the
Collateral of such Grantor and such other reports in connection with such Collateral as the Collateral Agent may reasonably request, all in reasonable detail. 
  

SECTION 10. As to Equipment and Inventory. 
  
 (a) Intentionally omitted. 
  
 (b) Each Grantor shall cause the Equipment of such Grantor to be maintained and preserved in good working order and condition, ordinary
wear and tear excepted, and shall forthwith, or in the case of any loss or damage to any of such Equipment as soon as practicable after the occurrence thereof, make or cause to be made all repairs, replacements and other improvements in connection
therewith that are necessary or desirable to such end. Each Grantor shall promptly furnish to the Collateral Agent a statement respecting any loss or damage exceeding $500,000 to any of the Equipment or Inventory of such Grantor. 
  
 (c) Each Grantor shall pay promptly when due all property
and other taxes, assessments and governmental charges or levies imposed upon, and all claims (including, without limitation, claims for labor, materials and supplies) against, the Equipment and Inventory of such Grantor provided,
however, that such Grantor shall not be required to pay or discharge any such tax, assessment, charge or claim that is being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained, unless and
until any Lien resulting therefrom attaches to its property and becomes enforceable against its other creditors. 
  
 SECTION 11. Insurance. 
  
 (a) Each Grantor shall, at its own expense, maintain insurance with respect to the Equipment and Inventory (it being understood that
Equipment and Inventory shall not include fiber optic cables) of such Grantor with responsible and reputable insurance companies or associations in such amounts, and against such risks as is usually carried by companies engaged in similar business
and owning similar properties in the same general area in which such Grantor operates. Each policy of each Grantor for liability insurance shall (i) name such Grantor and the Collateral Agent as insured parties thereunder (without any representation
or warranty by or obligation upon the Collateral Agent) as their interests may appear, (ii) contain the agreement by the insurer that any loss thereunder shall be payable to the Collateral Agent notwithstanding any action, inaction or breach of
representation or warranty by such Grantor, (iii) provide that there shall be no recourse against the Collateral Agent for payment of premiums or other amounts with respect thereto and (iv) provide that at least 10 days’ prior written notice of
cancellation or of lapse shall be given to the Collateral Agent by the insurer. Each Grantor shall, if so 

  

					
	 	  	17	  	 

 
requested by the Collateral Agent, deliver to the Collateral Agent original or duplicate policies of such insurance and, as often as the Collateral Agent may
reasonably request, a report of a reputable insurance broker with respect to such insurance. Further, each Grantor shall, at the request of the Collateral Agent, duly execute and deliver instruments of assignment of such insurance policies to comply
with the requirements of Section 10 and cause the insurers to acknowledge notice of such assignment. 
  
 (b) Reimbursement under any liability insurance maintained by any Grantor pursuant to this Section 11 may be paid directly to the Person
who shall have incurred liability covered by such insurance. In case of any loss involving damage to Equipment or Inventory when no Event of Default shall have occurred and be continuing, the applicable Grantor shall make or cause to be made the
necessary repairs to or replacements of such Equipment or Inventory, and any proceeds of insurance properly received by or released to such Grantor shall be used by such Grantor, except as otherwise required hereunder or by the Third Amended Credit
Agreement, to pay or to reimburse for the costs of such repairs or replacements. 
  
 (c) So long as no Event of Default shall have occurred and be continuing, all insurance payments received by the Collateral Agent in
connection with any loss, damage or destruction of any Inventory or Equipment shall be released, subject to the provisions of Section 2.05(b)(ii) of the Third Amended Credit Agreement, by the Collateral Agent to the applicable Grantor for the
repair, replacement or restoration thereof. 
  
 SECTION 12.
Place of Perfection; Records; Collection of Receivables. 
  
 (a) Each Grantor shall keep its jurisdiction of organization, and originals of the Assigned Agreements to which such Grantor is a party and all originals of all chattel paper that evidence Receivables of such Grantor,
at the location therefor specified in Section 8(a) or, upon 30 days’ prior written notice to the Collateral Agent, at such other location in a jurisdiction where all actions required by Section 9 shall have been taken with respect to the
Collateral of such Grantor (and, upon the taking of such action in such jurisdiction, Schedule IV hereto shall be automatically amended to include such other location). Each Grantor shall hold and preserve its records relating to the Collateral, the
Assigned Agreements and chattel paper and shall permit representatives of the Collateral Agent at any time during normal business hours to inspect and make abstracts from such records and other documents. 
  
 (b) Except as otherwise provided in this subsection (b),
each Grantor shall continue to collect, at its own expense, all amounts due or to become due to such Grantor under the Receivables. In connection with such collections, such Grantor may take such action as such Grantor may deem necessary or
advisable to enforce collection of the Receivables; provided, however, that the Collateral Agent shall have the right at any time, upon the occurrence and during the continuance of an Event of Default and upon written notice to such
Grantor of its intention to do so, to notify the Obligors under any Receivables of the assignment of such Receivables to the Collateral Agent and to direct such Obligors to make payment of all amounts due or to become due to such Grantor 

  

					
	 	  	18	  	 

 
thereunder directly to the Collateral Agent and, upon such notification and at the expense of such Grantor, to enforce collection of any such Receivables,
and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done. After receipt by any Grantor of the notice from the Collateral Agent referred to in the proviso to the
preceding sentence, (i) all amounts and proceeds (including instruments) received by such Grantor in respect of the Receivables of such Grantor shall be received in trust for the benefit of the Collateral Agent hereunder, shall be segregated from
other funds of such Grantor and shall be forthwith paid over to the Collateral Agent in the same form as so received (with any necessary indorsement) to be deposited in the Collateral Account and either (A) released to such Grantor on the terms set
forth in Section 7 so long as no Event of Default shall have occurred and be continuing or (B) if any Event of Default shall have occurred and be continuing, applied as provided in Section 21(b) and (ii) such Grantor shall not adjust, settle or
compromise the amount or payment of any Receivable, release wholly or partly any Obligor thereof, or allow any credit or discount thereon. No Grantor shall permit or consent to the subordination of its right to payment under any of the Receivables
to any other indebtedness or obligations of the Obligor thereof. 
  
 SECTION 13. As to Intellectual Property Collateral. 
  
 (a) Each Grantor agrees to take, at its expense, all necessary steps that such Grantor shall have determined are commercially reasonable in the conduct of such Grantor’s business with respect to each item of its
Intellectual Property Collateral, including, without limitation, in the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other governmental authority, to (i) maintain the validity and enforceability of such Intellectual Property
Collateral and maintain such Intellectual Property Collateral in full force and effect and (ii) pursue the registration and maintenance of patent, trademark or copyright registration or application now or hereafter included in the Intellectual
Property Collateral of such Grantor, including, without limitation, the payment of required fees and taxes, the filing of responses to office actions issued by the U.S. Patent and Trademark Office, the U.S. Copyright Office or other governmental
authorities, the filing of applications for renewal or extension, the filing of affidavits under Sections 8 and 15 of the U.S. Trademark Act, the filing of divisional, continuation, continuation-in-part, reissue and renewal applications or
extensions, the payment of maintenance fees and the participation in interference, reexamination, opposition, cancellation, infringement and misappropriation proceedings. No Grantor shall discontinue use of or otherwise abandon any Intellectual
Property Collateral, or abandon any right to file an application for letters patent, trademark or copyright, unless such Grantor shall have previously determined that such use or the pursuit or maintenance of such Intellectual Property Collateral is
no longer desirable in the conduct of such Grantor’s business and that the loss thereof would not be reasonably likely to have a Material Adverse Effect, in which case, with respect to any material item of Intellectual Property Collateral so
abandoned, such Grantor shall give reasonable notice of any such abandonment to the Collateral Agent. 
  

					
	 	  	19	  	 

 (b) Each Grantor agrees promptly to notify the Collateral Agent if such Grantor learns
(i) that any material item of the Intellectual Property Collateral may have become abandoned, placed in the public domain, invalid or unenforceable, or of any adverse determination or development regarding such Grantor’s ownership of any
material item of the Intellectual Property Collateral or its right to register the same or to keep and maintain and enforce the same, or (ii) of any adverse determination or the institution of any proceeding (including, without limitation, the
institution of any proceeding in the U.S. Patent and Trademark Office or any court) regarding any material item of the Intellectual Property Collateral. 
  
 (c) In the event that any Grantor becomes aware that any material item of the Intellectual Property Collateral is being infringed or
misappropriated by a third party and communicates such awareness to such third party, such Grantor shall reasonably notify the Collateral Agent and shall take such actions, at its expense, as such Grantor deems reasonable and appropriate under the
circumstances to protect such Intellectual Property Collateral, including, without limitation, suing for infringement or misappropriation and for an injunction against such infringement or misappropriation. 
  
 (d) Each Grantor shall use commercially reasonable statutory
notice in connection with its use of each material item of its Intellectual Property Collateral. Except as set forth in Section 13(a), no Grantor shall do or permit any act or knowingly omit to do any act whereby any of its Intellectual Property
Collateral may lapse or become invalid or unenforceable or placed in the public domain. 
  
 (e) Each Grantor shall take all steps which it deems reasonable and appropriate under the circumstances to preserve and protect each item
of its Intellectual Property Collateral, including, without limitation, maintaining the quality of any and all products or services offered or provided under any of the Trademarks, consistent with the quality of the products and services as of the
date hereof, and taking all steps necessary to ensure that all licensed users of any of the Trademarks use such consistent standards of quality. 
  
 (f) With respect to its Intellectual Property Collateral, each Grantor agrees to execute an agreement, in substantially the form set forth
in Exhibit C hereto (an “Intellectual Property Security Agreement”), for recording the security interest granted hereunder to the Collateral Agent in such Intellectual Property Collateral with the U.S. Patent and Trademark
Office, the U.S. Copyright Office and any other governmental authorities necessary to perfect the security interest hereunder in such Intellectual Property Collateral. 
  
 (g) Each Grantor agrees that, should it obtain an ownership interest in any item of the type set forth in
Section 1(g) which is not on the date hereof a part of the Intellectual Property Collateral (the “After-Acquired Intellectual Property”), (i) the provisions of Section 1 shall automatically apply thereto, (ii) any such
After-Acquired Intellectual Property and, in the case of trademarks, the goodwill of the business connected therewith or symbolized thereby, shall automatically become part of the Intellectual Property Collateral subject to the terms and conditions
of this Agreement with respect thereto, (iii) 

  

					
	 	  	20	  	 

 
with respect to only material items of After-Acquired Intellectual Property, such Grantor shall give written notice thereof to the Collateral Agent in
accordance herewith every calendar quarter and (iv) with respect to registrations and applications for registration of such After-Acquired Intellectual Property which are registered or filed with the U.S. Patent and Trademark Office, U.S. Copyrights
Office or order governmental authorities, such Grantor shall execute and deliver to the Collateral Agent an IP Security Agreement Supplement covering such After-Acquired Intellectual Property as “Additional Collateral”
thereunder and as defined therein, and shall record such IP Security Agreement Supplement with the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other governmental authorities necessary to perfect the security interest
hereunder in such After-Acquired Intellectual Property. 
  
 SECTION 14. Voting Rights; Dividends; Etc. 
  
 (a) So long as no Event of Default shall have occurred and be continuing: 
  
 (i) Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Security Collateral of
such Grantor or any part thereof for any purpose; provided, however, that such Grantor shall not exercise or refrain from exercising any such right if such action would have a material adverse effect on the value of the Security Collateral or
any part thereof. 
  
 (ii) Each Grantor shall be
entitled to receive and retain any and all dividends, interest and other distributions paid in respect of the Security Collateral of such Grantor if and to the extent that the payment thereof is not otherwise prohibited by the terms of the Loan
Documents; provided, however, that any and all: 
  
 (A) dividends, interest and other distributions paid or payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any
Security Collateral, 
  
 (B) dividends and other
distributions paid or payable in cash in respect of any Security Collateral in connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in-surplus, and 
  
 (C) cash paid, payable or otherwise distributed in respect
of principal of, or in redemption of, or in exchange for, any Security Collateral, 
  
 shall be, and shall be forthwith delivered to the Collateral Agent to hold as Security Collateral and shall, if received by such Grantor, be received in trust for the benefit of the Collateral Agent, be segregated
from the other property or funds of such Grantor and be forthwith delivered to the Collateral Agent as Security Collateral in the same form as so received (with any necessary indorsement). 
  

					
	 	  	21	  	 

 (iii) The Collateral Agent shall execute and deliver (or cause to be executed and
delivered) to each Grantor all such proxies and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise pursuant to paragraph (i) above
and to receive the dividends or interest payments that it is authorized to receive and retain pursuant to paragraph (ii) above. 
  
 (b) Upon the occurrence and during the continuance of an Event of Default: 
  
 (i) All rights of each Grantor (x) to exercise or refrain from exercising the voting and other consensual
rights that it would otherwise be entitled to exercise pursuant to Section 14(a)(i) shall, upon notice to such Grantor by the Collateral Agent, cease and (y) to receive the dividends, interest and other distributions that it would otherwise be
authorized to receive and retain pursuant to Section 14(a)(ii) shall automatically cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising
such voting and other consensual rights and to receive and hold as Security Collateral such dividends, interest and other distributions. 
  
 (ii) All dividends, interest and other distributions that are received by any Grantor contrary to the provisions of paragraph (i) of this
Section 14(b) shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral Agent as Security Collateral in the same form as so received
(with any necessary indorsement). 
  
 (iii) The
Collateral Agent shall be authorized to send to each Securities Intermediary or Commodity Intermediary as defined in and under any Control Agreement a notice of exclusive control under such Control Agreement. 
  
 SECTION 15. As to the Assigned Agreements. 
  
 (a) Each Grantor shall at its expense: 
  
 (i) perform and observe all terms and provisions of the
Assigned Agreements to be performed or observed by it, maintain the Assigned Agreements to which it is a party in full force and effect, enforce the Assigned Agreements to which it is a party in accordance with the terms thereof and take all such
action to such end as may be reasonably requested from time to time by the Collateral Agent except where the failure to do so would not have a Material Adverse Effect; and 
  
 (ii) and from time to time (A) furnish to the Collateral Agent such information and reports regarding the
Assigned Agreements and such other Collateral of such Grantor as the Collateral Agent may reasonably request and (B) upon request of the Collateral Agent, make to each other party to any Assigned 

  

					
	 	  	22	  	 

 
Agreement to which it is a party such demands and requests for information and reports or for action as such Grantor is entitled to make thereunder.

  
 (b) Each Grantor agrees that it shall not,
except to the extent otherwise permitted under the Third Amended Credit Agreement: 
  
 (i) cancel or terminate any Assigned Agreement to which it is a party or consent to or accept any cancellation or termination thereof;

  
 (ii) amend, amend and restate, supplement or
otherwise modify any such Assigned Agreement or give any consent, waiver or approval thereunder; 
  
 (iii) waive any default under or breach of any such Assigned Agreement; or 
  
 (iv) take any other action in connection with any such Assigned Agreement that would impair the value of the
interests or rights of such Grantor thereunder or that would impair the interests or rights of any Secured Party. 
  
 (c) Each Grantor hereby consents on its own behalf and on behalf of its Subsidiaries to the assignment and pledge to the Collateral Agent
for benefit of the Secured Parties of each Assigned Agreement to which it is a party by any other Grantor hereunder. 
  
 SECTION 16. Payments Under the Assigned Agreements. 
  
 (a) Each Grantor agrees (and as part of the consents such Grantor has agreed to request pursuant to Section 8(g) will instruct each other
party to each Assigned Agreement which is the subject of such consent to agree) that, upon the occurrence and during the continuance of an Event of Default, all payments due or to become due under or in connection with such Assigned Agreement shall
be made directly to the Collateral Account. 
  
 (b) All moneys received or collected pursuant to subsection (a) above shall be (i) released to the applicable Grantor so long as no Event of Default shall have occurred and be continuing or (ii) if any Event of Default shall have occurred
and be continuing, applied as provided in Section 21(b). 
  
 SECTION 17. Transfers and Other Liens; Additional Shares. 
  
 (a) Each Grantor agrees that it shall not (i) sell, assign or otherwise dispose of, or grant any option with respect to, any of the Collateral, other than sales, assignments and other dispositions of Collateral,
non-exclusive licenses granted in the ordinary course of business and options relating to Collateral, permitted under the terms of the Third Amended Credit Agreement, or (ii) create or suffer to exist any Lien upon or with respect to any of the
Collateral of such Grantor except for the pledge, assignment and security 

  

					
	 	  	23	  	 

 
interest created under this Agreement and Liens permitted under the Third Amended Credit Agreement or the First Amended Second Lien Credit Agreement.

  
 (b) Each Grantor agrees that it shall (i)
cause each issuer of the Pledged Shares pledged by such Grantor not to issue any stock or other securities in addition to or in substitution for the Pledged Shares issued by such issuer, except to such Grantor, and (ii) pledge hereunder, immediately
upon its acquisition (directly or indirectly) thereof, any and all additional shares of stock or other securities. 
  
 SECTION 18. Collateral Agent Appointed Attorney-in-Fact. Each Grantor hereby irrevocably appoints the Collateral Agent such Grantor’s
attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time, upon the occurrence and during the continuance of an Event of Default, in the Collateral Agent’s
discretion, to take any action and to execute any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including, without limitation: 
  
 (a) to obtain and adjust insurance required to be paid to
the Collateral Agent pursuant to Section 11, 
  
 (b) to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due under or in respect of any of the Collateral, 
  
 (c) to receive, indorse and collect any drafts or other
instruments, documents and chattel paper, in connection with clause (a) or (b) above, and 
  
 (d) to file any claims or take any action or institute any proceedings that the Collateral Agent may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce compliance with the terms and conditions of any Assigned Agreement or the rights of the Collateral Agent with respect to any of the Collateral. 
  
 SECTION 19. Collateral Agent May Perform. If any Grantor fails to
perform any agreement contained herein, the Collateral Agent may, as the Collateral Agent deems necessary to protect the security interest granted hereunder in the Collateral or to protect the value thereof, but without any obligation to do so and
without notice, itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be payable by such Grantor under Section 22(b). 
  
 SECTION 20. The Collateral Agent’s Duties. 
  
 (a) The powers conferred on the Collateral Agent hereunder
are solely to protect the Secured Parties’ interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually
received by it hereunder, the Collateral Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to 

  

					
	 	  	24	  	 

 
calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or not any Secured Party has or is deemed to have
knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to have exercised reasonable care in the custody and
preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which it accords its own property. 
  
 (b) Anything contained herein to the contrary notwithstanding, the Collateral Agent may from time to time, when the Collateral Agent deems
it to be necessary, appoint one or more subagents (each a “Subagent”) for the Collateral Agent hereunder with respect to all or any part of the Collateral. In the event that the Collateral Agent so appoints any Subagent with
respect to any Collateral, (i) the assignment and pledge of such Collateral and the security interest granted in such Collateral by each Grantor hereunder shall be deemed for purposes of this Agreement to have been made to such Subagent, in addition
to the Collateral Agent, for the ratable benefit of the Secured Parties, as security for the Secured Obligations of such Grantor, (ii) such Subagent shall automatically be vested, in addition to the Collateral Agent, with all rights, powers,
privileges, interests and remedies of the Collateral Agent hereunder with respect to such Collateral, and (iii) the term “Collateral Agent,” when used herein in relation to any rights, powers, privileges, interests and remedies of
the Collateral Agent with respect to such Collateral, shall include such Subagent; provided, however, that no such Subagent shall be authorized to take any action with respect to any such Collateral unless and except to the extent expressly
authorized in writing by the Collateral Agent. 
  
 SECTION 21.
Remedies. If any Event of Default shall have occurred and be continuing: 
  
 (a) The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies provided for herein or
otherwise available to it, all the rights and remedies of a secured party upon default under the N.Y. Uniform Commercial Code (whether or not the N.Y. Uniform Commercial Code applies to the affected Collateral) and also may: (i) require each Grantor
to, and each Grantor hereby agrees that it shall at its expense and upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed by the Collateral Agent and make it available to the Collateral Agent at a place
and time to be designated by the Collateral Agent that is reasonably convenient to both parties; (ii) without notice except as specified below, sell the Collateral or any part thereof in one or more parcels, at public or private sale, at any of the
Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and upon such other terms as the Collateral Agent may deem commercially reasonable; (iii) occupy any premises owned or leased by any of the Grantors where the
Collateral or any part thereof is assembled or located for a reasonable period in order to effectuate its rights and remedies hereunder or under law, without obligation to such Grantor in respect of such occupation; and (iv) exercise any and all
rights and remedies of any of the Grantors under or in connection with the Assigned Agreements or the Receivables or otherwise in respect of the Collateral, including, without limitation, any and all rights of such Grantor 

  

					
	 	  	25	  	 

 
to demand or otherwise require payment of any amount under, or performance of, any provision of the Assigned Agreements, the Receivables. Each Grantor agrees
that, to the extent notice of sale shall be required by law, at least ten days’ notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The
Collateral Agent shall not be obligated to make any sale of Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and place to which it was so adjourned. 
  
 (b) Any cash held by or on behalf of the Collateral Agent and all cash proceeds received by or on behalf of the Collateral Agent in
respect of any sale of, collection from, or other realization upon all or any part of the Collateral may, in the discretion of the Collateral Agent, be held by the Collateral Agent as collateral for, and/or then or at any time thereafter applied
(after payment of any amounts payable to the Collateral Agent pursuant to Section 22), in whole or in part, by the Collateral Agent for the ratable benefit of the Secured Parties against, all or any part of the Secured Obligations, in the following
manner: 
  
 (i) first, to the Agents for
any amounts owing to the Agents pursuant to Section 9.04 of the Third Amended Credit Agreement or otherwise under the Loan Documents, ratably in accordance with such respective amounts then owing to the Agents; and 
  
 (ii) second, to the Lenders and the Hedge Banks,
respectively, for any amount then owing to them, in their capacities as such, under the Loan Documents in accordance with Section 2.03(g) of the Third Amended Credit Agreement, provided, that, for purposes of this Section 21, the
amount owing to any such Hedge Bank pursuant to any Secured Hedge Agreement to which it is a party (other than any amount theretofore accrued and unpaid) shall be deemed to be equal to the Agreement Value therefor. 
  
 Any surplus of such cash or cash proceeds held by or on the behalf of the
Collateral Agent and remaining after payment in full of all the Secured Obligations shall be applied as provided in the Intercreditor and Subordination Agreements. 
  
 (c) All payments received by any Grantor under or in connection with any Assigned Agreement or otherwise in
respect of the Collateral shall be (i) received in trust for the benefit of the Collateral Agent, (ii) segregated from other funds of such Grantor and (iii) forthwith paid over to the Collateral Agent in the same form as so received (with any
necessary indorsement). 
  
 (d) The Collateral
Agent may, without notice to any Grantor except as required by law and at any time or from time to time, charge, set-off and otherwise apply all or any part of the Secured Obligations against any funds held in the Collateral Account or in any
deposit account related thereto. 
  

					
	 	  	26	  	 

 (e) In the event of any sale or other disposition of any of the Intellectual Property
Collateral of any Grantor, the goodwill of the business connected with and symbolized by any Trademarks subject to such sale or other disposition shall be included therein, and such Grantor shall supply to the Collateral Agent or its designee such
Grantor’s know-how and expertise, and documents and things relating to any Intellectual Property Collateral subject to such sale or other disposition, and such Grantor’s customer lists and other records and documents relating to such
Intellectual Property Collateral and to the manufacture, distribution, advertising and sale of products and services of such Grantor. 
  
 (f) If the Collateral Agent shall determine to exercise its right to sell all or any of the Security Collateral of any Grantor pursuant to
this Section 21, each Grantor agrees that, upon request of the Collateral Agent, such Grantor shall, at its own expense: 
  
 (i) execute and deliver, and cause each issuer of such Security Collateral contemplated to be sold and the directors and officers thereof
to execute and deliver, all such instruments and documents, and do or cause to be done all such other acts and things, as may be necessary or, in the opinion of the Collateral Agent, advisable to register such Security Collateral under the
provisions of the Securities Act of 1933 (as amended from time to time, the “Securities Act”), to cause the registration statement relating thereto to become effective and to remain effective for such period as prospectuses
are required by law to be furnished and to make all amendments and supplements thereto and to the related prospectus that, in the opinion of the Collateral Agent, are necessary or advisable, all in conformity with the requirements of the Securities
Act and the rules and regulations of the Securities and Exchange Commission applicable thereto; 
  
 (ii) use its best efforts to qualify the Security Collateral under the state securities or “Blue Sky” laws and to obtain all
necessary governmental approvals for the sale of such Security Collateral, as requested by the Collateral Agent; 
  
 (iii) cause each such issuer of such Security Collateral to make available to its security holders, as soon as practicable, an earnings
statement that shall satisfy the provisions of Section 11(a) of the Securities Act; 
  
 (iv) provide the Collateral Agent with such other information and projections as may be necessary or, in the opinion of the Collateral
Agent, advisable to enable the Collateral Agent to effect the sale of such Security Collateral; and 
  
 (v) do or cause to be done all such other acts and things as may be necessary to make such sale of such Security Collateral or any part
thereof valid and binding and in compliance with applicable law. 
  
 (g) The Collateral Agent is authorized, in connection with any sale of the Security Collateral pursuant to this Section 21, to deliver or otherwise disclose to any prospective purchaser of the Security Collateral: (i)
any registration statement or prospectus, and all 

  

					
	 	  	27	  	 

 
supplements and amendments thereto, prepared pursuant to subsection (f)(i) above; (ii) any information and projections provided to it pursuant to subsection
(f)(iv) above; and (iii) any other information in its possession relating to such Security Collateral. 
  
 (h) Each Grantor acknowledges the impossibility of ascertaining the amount of damages that would be suffered by the Secured Parties by
reason of the failure by such Grantor to perform any of the covenants contained in subsection (f) above and, consequently, agrees that, if such Grantor shall fail to perform any of such covenants, it shall pay, as liquidated damages and not as a
penalty, an amount equal to the value of the Security Collateral on the date the Collateral Agent shall demand compliance with subsection (f) above. 
  
 SECTION 22. Indemnity and Expenses. 
  
 (a) Each Grantor agrees to indemnify, defend, save and hold harmless each Secured Party and each of their Affiliates and their respective
officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation,
reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or resulting from any claims by third parties involving this Agreement
(including, without limitation, enforcement of this Agreement), except to the extent such claim, damage, loss, liability or expense resulted from such Indemnified Party’s gross negligence or willful misconduct. 
  
 (b) Each Grantor shall upon demand pay to the Collateral
Agent the amount of any and all reasonable expenses, including, without limitation, the reasonable fees and expenses of its counsel and of any experts and agents, that the Collateral Agent may incur in connection with (i) the administration of this
Agreement, (ii) the custody, preservation, use or operation of, or the sale of, collection from or other realization upon, any of the Collateral of such Grantor, (iii) the exercise or enforcement of any of the rights of the Collateral Agent or the
other Secured Parties hereunder or (iv) the failure by such Grantor to perform or observe any of the provisions hereof. 
  
 SECTION 23. Amendments; Waivers; Additional Grantors; Etc. 
  
 (a) No amendment or waiver of any provision of this Agreement, and no consent to any departure by any
Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Collateral Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which such
waiver or consent is given. No failure on the part of the Collateral Agent or any other Secured Party to exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any
such right preclude any other or further exercise thereof or the exercise of any other right. 
  
 (b) Upon the execution and delivery by any Person of a security agreement supplement in substantially the form of Exhibit A hereto (each a
“Security Agreement 

  

					
	 	  	28	  	 

 
Supplement”), (i) such Person shall be referred to as an “Additional Grantor” and shall be and become a Grantor
hereunder and each reference in this Agreement and the other Loan Documents to “Grantor” shall also mean and be a reference to such Additional Grantor, and (ii) the supplemental Schedules I, II, III, IV and V attached to each
Security Agreement Supplement shall be incorporated into and become a part of and supplement Schedules I, II, III, IV and V, respectively, hereto, and the Collateral Agent may attach such supplemental schedules to such Schedules, and each reference
to such Schedules shall mean and be a reference to such Schedules as supplemented pursuant to each Security Agreement Supplement. 
  
 SECTION 24. Notices, Etc. All notices and other communications provided for hereunder shall be in writing (including telegraphic, telecopier or
telex communication) and mailed, telegraphed, telecopied, telexed or delivered to, in the case of the Borrower or the Collateral Agent, addressed to it at its address specified in the Third Amended Credit Agreement and, in the case of each Grantor
other than the Borrower, addressed to it at its address set forth opposite such Grantor’s name on the signature pages hereto or on the signature page to the Security Agreement Supplement pursuant to which it became a party hereto; or, as to any
party, at such other address as shall be designated by such party in a written notice to the other parties. All such notices and other communications shall, when mailed, telegraphed, telecopied or telexed, be effective when deposited in the mail,
delivered to the telegraph company, telecopied or confirmed by telex answerback, respectively, addressed as aforesaid; except that notices and other communications to the Collateral Agent shall not be effective until received by the Collateral
Agent. Delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of this Agreement or of any Security Agreement Supplement or Schedule hereto shall be effective as delivery of an original executed counterpart
thereof. 
  
 SECTION 25. Continuing Security Interest;
Assignments under the Third Amended Credit Agreement. This Agreement shall continue, ratify, acknowledge, confirm and create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the latest of (i)
the payment in full in cash of the Secured Obligations, (ii) the Termination Date and (iii) the termination or expiration of all Secured Hedge Agreements, (b) be binding upon each Grantor, its successors and assigns and (c) inure, together with the
rights and remedies of the Collateral Agent hereunder, to the benefit of the Secured Parties and their respective successors, transferees and assigns. Without limiting the generality of the foregoing clause (c), any Lender may assign or otherwise
transfer all or any portion of its rights and obligations under the Third Amended Credit Agreement (including, without limitation, all or any portion of its Commitment, the Advances owing to it and the Note or Notes, if any, held by it) to any
Eligible Assignee, and such Eligible Assignee shall thereupon become vested with all the benefits in respect thereof granted to such Lender herein or otherwise, in each case as provided in Section 9.07 of the Third Amended Credit Agreement.

  
 SECTION 26. Release; Termination. 
  
 (a) Upon any sale, lease, transfer or other disposition of
any item of Collateral of any Grantor in accordance with the terms of the Loan Documents (other than sales of Inventory in the ordinary course of business), the Collateral Agent shall, at such 

  

					
	 	  	29	  	 

 
Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence the release of such item of
Collateral from the assignment and security interest granted hereby; provided, however, that (i) at the time of such request and such release no Event of Default shall have occurred and be continuing, (ii) such Grantor shall have delivered to
the Collateral Agent, at least 10 Business Days prior to the date of the proposed release, a written request for release describing the item of Collateral and the terms of the sale, lease, transfer or other disposition in reasonable detail,
including, without limitation, the price thereof and any expenses in connection therewith, together with a form of release for execution by the Collateral Agent and a certificate of such Grantor to the effect that the transaction is in compliance
with the Loan Documents and as to such other matters as the Collateral Agent may request and (iii) the proceeds of any such sale, lease, transferor other disposition required to be applied, or any payment to be made in connection therewith, in
accordance with Section 2.05 of the Third Amended Credit Agreement shall, to the extent so required, be paid or made to the Collateral Agent when and as required under Section 2.05 of the Third Amended Credit Agreement. 
  
 (b) Upon the latest of (i) the payment in full in cash of
the Secured Obligations, (ii) the Termination Date and (iii) the termination or expiration of all Secured Hedge Agreements, the pledge, assignment and security interest granted hereby shall terminate and all rights to the Collateral shall revert to
the applicable Grantor subject to the Intercreditor and Subordination Agreements, the First Amended Second Lien Credit Agreement, the Second Lien Loan Documents (as defined in the First Amended Second Lien Credit Agreement) and the Third Lien Credit
Agreement and the Third Lien Loan Documents (as defined in the Third Lien Credit Agreement). Upon any such termination, the Collateral Agent shall, at the applicable Grantor’s expense, execute and deliver to such Grantor such documents as such
Grantor shall reasonably request to evidence such termination. 
  
 SECTION 27. Security Interest Absolute. The obligations of each Grantor under this Agreement are independent of the Secured Obligations or any other Obligations of any other Loan Party under or in respect of the Loan Documents, and a
separate action or actions may be brought and prosecuted against each Grantor to enforce this Agreement, irrespective of whether any action is brought against such Grantor or any other Loan Party or whether such Grantor or any other Loan Party is
joined in any such action or actions. All rights of the Collateral Agent and the other Secured Parties and the pledge, assignment and security interest hereunder, and all obligations of each Grantor hereunder, shall be irrevocable, absolute and
unconditional irrespective of, and each Grantor hereby irrevocably waives (to the maximum extent permitted by applicable law) any defenses it may now have or may hereafter acquire in any way relating to, any or all of the following: 
  
 (a) any lack of validity or enforceability of any Loan
Document or any other agreement or instrument relating thereto; 
  
 (b) any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Obligations or any other Obligations of any other Loan Party 

  

					
	 	  	30	  	 

 
under or in respect of the Loan Documents or any other amendment or waiver of or any consent to any departure from any Loan Document, including, without
limitation, any increase in the Secured Obligations resulting from the extension of additional credit to any Loan Party or any of its Subsidiaries or otherwise; 
  
 (c) any taking, exchange, release or non-perfection of any Collateral or any other collateral, or any
taking, release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Secured Obligations; 
  
 (d) any manner of application of any Collateral or any other collateral, or proceeds thereof, to all or any of the Secured Obligations, or
any manner of sale or other disposition of any Collateral or any other collateral for all or any of the Secured Obligations or any other Obligations of any other Loan Party under or in respect of the Loan Documents or any other assets of any Loan
Party or any of its Subsidiaries; 
  
 (e) any
change, restructuring or termination of the corporate structure or existence of any Loan Party or any of its Subsidiaries; 
  
 (f) any failure of any Secured Party to disclose to any Loan Party any information relating to the business, condition (financial or
otherwise), operations, performance, assets, nature of assets, liabilities or prospects of any other Loan Party now or hereafter known to such Secured Party (each Grantor waiving any duty on the part of the Secured Parties to disclose such
information); 
  
 (g) the failure of any other
Person to execute this Agreement or any other Collateral Document, guaranty or agreement or the release or reduction of liability of any Grantor or other grantor or surety with respect to the Secured Obligations; or 
  
 (h) any other circumstance (including, without limitation,
any statute of limitations) or any existence of or reliance on any representation by any Secured Party that might otherwise constitute a defense available to, or a discharge of, such Grantor or any other Grantor or a third party grantor of a
security interest. 
  
 This Agreement shall continue to be effective or be
reinstated, as the case may be, if at any time any payment of any of the Secured Obligations is rescinded or must otherwise be returned by any Secured Party or by any other Person upon the insolvency, bankruptcy or reorganization of any Loan Party
or otherwise, all as though such payment had not been made. 
  
 SECTION 28. Execution in Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same
agreement. Delivery of an executed counterpart of a signature page to this Agreement by telecopier shall be effective as delivery of an original executed counterpart of this Agreement. 
  
 SECTION 29. Mortgages. In the event that any of the Collateral hereunder is also subject to a valid and enforceable
Lien under the terms of any Mortgage and the terms of such Mortgage are inconsistent with the terms of this Agreement, then with respect to such Collateral, 

  

					
	 	  	31	  	 

 
the terms of such Mortgage shall be controlling, in the case of fixtures and real estate leases, letting and licenses of, and contracts and agreements
relating to the lease of, real property, and the terms of this Agreement shall be controlling in the case of all other Collateral. 
  
 SECTION 30. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 SECTION 31. Intercreditor and Subordination Agreements.
Notwithstanding anything contained herein to the contrary, this Agreement and the rights and obligations of the parties hereunder are subject to the terms and conditions of the Intercreditor and Subordination Agreements. 
  

					
	 	  	32	  	 

 IN WITNESS WHEREOF, each Grantor has caused this Agreement to be duly executed and delivered by its
officer thereunto duly authorized as of the date first above written. 
  

									
	 Address for Notices:
 1791 O.G. Skinner Drive
 West Point, GA 31833
 Attention: Chief Administrative Officer
	 	 	 	 INTERSTATE FIBERNET, INC.

	 	 	 	By:	 	 	 	/s/    RICHARD E.
FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer
			
	 Address for Notices:
 1791 O.G. Skinner Drive
 West Point, GA 31833
 Attention: Chief Administrative Officer
	 	 	 	 ITC ^DELTACOM, INC.

	 	 	 	By:	 	 	 	/s/    RICHARD E.
FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer
			
	 Address for Notices:
 1791 O.G. Skinner Drive
 West Point, GA 31833
 Attention: Chief Administrative Officer
	 	 	 	 ITC ^DELTACOM COMMUNICATIONS, INC.

	 	 	 	By:	 	 	 	/s/    RICHARD E.
FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer
			
	 Address for Notices:
 1791 O.G. Skinner Drive
 West Point, GA 31833
 Attention: Chief Administrative Officer
	 	 	 	 DELTACOM INFORMATION SYSTEMS, INC.

	 	 	 	By:	 	 	 	/s/    RICHARD E.
FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer

  

					
	 	  	 	  	 

									
	 Address for Notices:
 1791 O.G. Skinner Drive
 West Point, GA 31833
 Attention: Chief Administrative Officer
	 	 	 	 BUSINESS TELECOM, INC.

	 	 	 	By:	 	 	 	/s/    RICHARD E.
FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer
			
	 Address for Notices:
 1791 O.G. Skinner Drive
 West Point, GA 31833
 Attention: Chief Administrative Officer
	 	 	 	 BTI TELECOM CORP.

	 	 	 	By:	 	 	 	/s/    RICHARD E.
FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer
			
	 Address for Notices:
 1791 O.G. Skinner Drive
 West Point, GA 31833
 Attention: Chief Administrative Officer
	 	 	 	 BUSINESS TELECOM OF VIRGINIA, INC.

	 	 	 	By:	 	 	 	/s/    RICHARD E.
FISH        
	 	 	 	 	 	 	 Name:
	 	Richard E. Fish
	 	 	 	 	 	 	 Title:
	 	Chief Administrative Officer

  

					
	 	  	2	  	 

  
 Exhibit A to the

 Security Agreement 
  
 FORM OF SECURITY AGREEMENT SUPPLEMENT 
  
 [Date of Security Agreement Supplement] 
  
 Wells Fargo Bank, N.A. 
 as
the Collateral Agent for the 
 Secured Parties referred to in the 
 Third Amended Credit Agreement referred to below 
 ___________________ 
 ___________________ 
 Attn:
                                   
  
 Ladies and Gentlemen: 
  
 Reference is made to (i) the Third Amended and Restated Credit Agreement dated as of March 29, 2005 (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Credit Agreement”), among Interstate FiberNet, Inc., a Delaware corporation, as the Borrower, the Lenders party thereto and Wells Fargo Bank, N.A., as
collateral agent (together with any successor collateral agent appointed pursuant to Article VIII of the Credit Agreement, the “Collateral Agent”) and administrative agent, and (ii) the Third Amended and Restated Security
Agreement, dated as of March 29, 2005 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement”), made by the Grantors from time to time party thereto in favor of the
Collateral Agent for the Secured Parties. Terms defined in the Credit Agreement or the Security Agreement and not otherwise defined herein are used herein as defined in the Credit Agreement or the Security Agreement. 
  
 SECTION 1. Grant of Security. Subject to the terms and conditions of
the Intercreditor and Subordination Agreements, the undersigned hereby pledges to the Collateral Agent for the ratable benefit of the Secured Parties (subject to the terms of the Credit Agreement and this Security Agreement Supplement), and hereby
grants to the Collateral Agent for the ratable benefit of the Secured Parties, a security interest in, all of its right, title and interest in and to all of the Collateral of the undersigned, whether now owned or hereafter acquired by the
undersigned, wherever located and whether now or hereafter existing or arising, including, without limitation, the property and assets of the undersigned set forth on the attached supplemental schedules to the Schedules to the Security Agreement.

  
 SECTION 2. Security for Obligations. The pledge and
assignment of, and the grant of a security interest in, the Collateral by the undersigned under this Security Agreement Supplement and the Security Agreement secures the payment of all Obligations of the undersigned now or hereafter existing under
or in respect of the Loan Documents, whether direct 

  

					
	 	  	 	  	 

 
or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract
causes of action, costs, expenses or otherwise. 
  
 Without
limiting the generality of the foregoing, this Agreement secures, as to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and would be owed by such Grantor to any Secured Party under the Loan Documents but for
the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party. 
  
 SECTION 3. Supplements to Security Agreement Schedules. The undersigned has attached hereto supplemental Schedules I, II, III, IV and V to
Schedules I, II, III, IV and V, respectively, to the Security Agreement, and the undersigned hereby certifies, as of the date first above written, that such supplemental schedules have been prepared by the undersigned in substantially the form of
the equivalent Schedules to the Security Agreement and are complete and correct in all material respects. 
  
 SECTION 4. Representations and Warranties. The undersigned hereby makes each representation and warranty set forth in Section 8 of the Security
Agreement (as supplemented by the attached supplemental schedules) to the same extent as each other Grantor. 
  
 SECTION 5. Obligations Under the Security Agreement. The undersigned hereby agrees, as of the date first above written, to be bound as a Grantor by
all of the terms and provisions of the Security Agreement to the same extent as each of the other Grantors. The undersigned further agrees, as of the date first above written, that each reference in the Security Agreement to an “Additional
Grantor” or a “Grantor” shall also mean and be a reference to the undersigned. 
  
 SECTION 6. Jurisdiction, Etc. (a) The undersigned hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or Federal court of
the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Security Agreement Supplement or any of the other Loan Documents to which it is a party,
or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York State court
or, to the fullest extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in
any other manner provided by law. Nothing in this Security Agreement Supplement shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Security Agreement Supplement or any of the other Loan
Documents in the courts of any jurisdiction. 
  
 (b) The undersigned hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising
out of or relating to this Security 

  

					
	 	  	2	  	 

 
Agreement Supplement or any of the other Loan Documents to which it is a party in any New York State or Federal court. The undersigned hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
  
 SECTION 7. Governing Law. This Security Agreement Supplement shall be governed by, and construed in accordance with, the laws of the State of New
York. 
  
 SECTION 8. Intercreditor and Subordination
Agreements. Notwithstanding anything contained herein to the contrary, this Agreement and the rights and obligations of the parties hereunder are subject to the terms and conditions of the Intercreditor and Subordination Agreements. 

 

			
	Very truly yours,
	
	[NAME OF ADDITIONAL GRANTOR]
		
	 By
	 	 
	 	 	 Title:

	
	 Address for notices:

	 
	 
	 

  

					
	 	  	3	  	 

  
 Exhibit B to the

 Security Agreement 
  
 FORM OF CONSENT AND AGREEMENT 
  
 The undersigned hereby (a) acknowledges notice of, and consents to the terms and provisions of, the Third Amended and Restated Security Agreement dated as
of March 29, 2005 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Security Agreement,” the terms defined therein being used herein as therein defined) from
                     (the “Grantor”), and certain other grantors from time to time party thereto to Wells Fargo Bank,
N.A., as Collateral Agent (the “Collateral Agent”) for the Secured Parties referred to therein, (b) consents in all respects to the pledge and assignment to the Collateral Agent of all of the Grantor’s right, title and
interest in, to and under the Assigned Agreement (as defined below) pursuant to the Security Agreement, (c) acknowledges that the Grantor has provided it with notice of the right of the Collateral Agent in the exercise of its rights and remedies
under the Security Agreement to make all demands, give all notices, take all actions and exercise all rights of the Grantor under the Assigned Agreement, and (d) agrees with the Collateral Agent that: 
  
 (i) Upon its receipt from the Collateral Agent of a notice
specifying that an Event of Default under the Third Amended Credit Agreement has occurred and is continuing, the undersigned shall make all payments to be made by it under or in connection with the
                     Agreement dated
                    ,          (the “Assigned Agreement”) between the
undersigned and the Grantor directly to the Collateral Agent or otherwise in accordance with the instructions of the Collateral Agent. 
  
 (ii) All payments referred to in paragraph (i) above shall be made by the undersigned irrespective of, and without deduction for, any
counterclaim, defense, recoupment or set-off and shall be final, and the undersigned shall not seek to recover from any Secured Party for any reason any such payment once made. 
  
 (iii) Upon the occurrence and during the continuance of an Event of Default, the Collateral Agent or its
designee shall be entitled to exercise any and all rights and remedies of the Grantor under the Assigned Agreement in accordance with the terms of the Security Agreement, and the undersigned shall comply in all respects with such exercise.

  
 (iv) The undersigned shall not, without the
prior written consent of the Collateral Agent, (A) cancel or terminate the Assigned Agreement or consent to or accept any cancellation or termination thereof, or (B) amend, amend and restate, supplement or otherwise modify the Assigned Agreement,
except, in each case, to the extent otherwise permitted under the Third Amended Credit Agreement referred to in the Security Agreement. 
  
 (v) In the event of a default by the Grantor in the performance of any of its obligations under the Assigned Agreement, or upon the
occurrence or non-occurrence of any event or condition under the Assigned Agreement which would immediately or with the passage of any applicable grace period or the giving of notice, or both, enable the undersigned to terminate or suspend its
obligations under the Assigned 

  

					
	 	  	 	  	 

 
Agreement, the undersigned shall not terminate the Assigned Agreement until it first gives written notice thereof to the Collateral Agent and permits the
Grantor and the Collateral Agent the period of time afforded to the Grantor under the Assigned Agreement to cure such default. 
  
 (vi) The undersigned shall deliver to the Collateral Agent, concurrently with the delivery thereof to the Grantor, a copy of each notice,
request or demand given by the undersigned pursuant to the Assigned Agreement. 
  
 (vii) Except as specifically provided in this Consent and Agreement, neither the Collateral Agent nor any other Secured Party shall have
any liability or obligation under the Assigned Agreement as a result of this Consent and Agreement, the Security Agreement or otherwise. 
  
 In order to induce the Lenders to maintain the Loans under the Third Amended Credit Agreement, the undersigned repeats and reaffirms for the benefit of
the Secured Parties the representations and warranties made by it in the Assigned Agreement. 
  
 This Consent and Agreement shall be binding upon the undersigned and its successors and assigns, and shall inure, together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the Secured
Parties and their successors, transferees and assigns. This Consent and Agreement shall be governed by and construed in accordance with the laws of the State of New York. 
  
 *    *    * 
  

					
	 	  	2	  	 

 IN WITNESS WHEREOF, the undersigned has duly executed this Consent and Agreement as of the date set
opposite its name below. 
  

									
	 	 	 	 	 [NAME OF OBLIGOR]

				
	Dated:                     ,
        	 	 	 	 By
	 	 
	 	 	 	 	 	 	 	 	 Title:

  

					
	 	  	3	  	 

  
 Exhibit C to the

 Security Agreement 
  
 FORM OF THIRD AMENDED AND RESTATED 
 INTELLECTUAL PROPERTY SECURITY AGREEMENT 
  
 This
THIRD AMENDED AND RESTATED INTELLECTUAL PROPERTY SECURITY AGREEMENT (as amended, amended and restated, supplemented or otherwise modified from time to time, the “IP Security Agreement”) dated as of March 29, 2005, is made by
the Persons listed on the signature pages hereof (collectively, the “Grantors”) in favor of Wells Fargo Bank Minnesota, National Association, as collateral agent (the “Collateral Agent”) for the
Secured Parties (as defined in the Third Amended Credit Agreement referred to below). Any capitalized term used herein and not otherwise defined has the meaning set forth in the Third Amended Credit Agreement. 
  
 WHEREAS, the Borrower and the other loan parties named therein have entered
into a Third Amended and Restated Credit Agreement, dated as of March 29, 2005 (as may be amended from time to time, the “Third Amended Credit Agreement”), with the lender parties and the agents named therein,
pursuant to which the Grantors executed and delivered to the collateral agent named therein a Third Amended and Restated Security Agreement, dated as of March 29, 2005 (as amended, amended and restated, supplemented or otherwise modified from time
to time, the “Security Agreement”); and 
  
 WHEREAS, under the terms of the Security Agreement, the Grantors have granted and ratified, acknowledged, confirmed and continued their grant of a security interest in, among other property, certain intellectual property of the Grantors to
the Collateral Agent for the ratable benefit of the Secured Parties, and have agreed as a condition thereof to execute this IP Security Agreement covering such intellectual property for recording with the U.S. Patent and Trademark Office, the United
States Copyright Office and other governmental authorities; 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Grantor agrees as follows: 
  
 SECTION 1. Grant of Security. Subject to the terms and conditions of the Intercreditor and Subordination Agreements, each Grantor hereby grants and
ratifies, acknowledges, confirms and continues its grant to the Collateral Agent for the ratable benefit of the Secured Parties (subject to the terms of the Third Amended Credit Agreement and this IP Security Agreement) of a security interest in and
to all of such Grantor’s right, title and interest in and to the following (the “Collateral”): 
  
 (a) the United States international, and foreign patents and patent applications set forth in Schedule A hereto (as such Schedule A may be
supplemented from time to time by supplements to the Security Agreement and this IP Security Agreement, each such supplement being in substantially the form of Exhibit D to the Security Agreement (an “IP Security Agreement
Supplement”), executed and delivered by such Grantor to the Collateral Agent from time to time), together with all reissues, divisions, 

  

					
	 	  	 	  	 

 
continuations, continuations-in-part, extensions and reexaminations thereof, and all rights therein provided by international treaties or conventions (the
“Patents”); 
  
 (b) the
United States and foreign trademark and service mark registrations and applications set forth in Schedule B hereto (as such Schedule B may be supplemented from time to time by IP Security Agreement Supplements executed and delivered by such Grantor
to the Collateral Agent from time to time) (the “Trademarks”); 
  
 (c) the United States and foreign copyright registrations and applications set forth in Schedule C hereto (as such Schedule C may be
supplemented from time to time by IP Security Agreement Supplements executed and delivered by such Grantor to the Collateral Agent from time to time) (the “Copyrights”); 
  
 (d) any and all claims for damages for past, present and
future infringement, misappropriation or breach with respect to the Patents, Trademarks and Copyrights, with the right, but not the obligation, to sue for and collect, or otherwise recover, such damages; and 
  
 (e) any and all proceeds of the foregoing. 
  
 Notwithstanding anything in this Section 1 or any other provision of this
Agreement to the contrary, the Collateral shall not include: any general intangibles or other rights or property arising under or subject to any contracts, instruments, licenses, permits or other documents (including, without limitation, the
Assigned Agreements referred to in the third sentence of Section 8(g) of the Security Agreement) as to which the grant of a security interest would constitute a violation of a valid and enforceable restriction (whether arising by contract or under
law or governmental regulation) in favor of a third party (including a governmental authority) on such grant or a violation of law or governmental regulation, unless and until any required consents shall have been obtained. 
  
 SECTION 2. Security for Obligations. The pledge and the grant of a
security interest in, and the continuance of the pledge and the grant of a security interest in, the Collateral by each Grantor under this IP Security Agreement secures the payment of all Obligations of such Grantor now or hereafter existing under
or in respect of the Loan Documents, whether direct or indirect, absolute or contingent, and whether for principal, reimbursement obligations, interest, premiums, penalties, fees, indemnifications, contract causes of action, costs, expenses or
otherwise. 
  
 The parties hereto intend to maintain the validity,
effectiveness, enforceability, perfection and priority of the Collateral Documents delivered under the Original ITCD Credit Agreement, the First Amended ITCD Credit Agreement, the Second Amended ITCD Credit Agreement, the GECC Capital Lease and the
NFTC Capital Lease (the “Original Security Documents”) and this IP Security Agreement is intended, inter alia, to extend the obligations and indebtedness secured by the security interests and pledges created and
affected by the Original Security Documents, in each case, except as specifically provided herein, including, without limitation, in the last paragraph of Section 1, without terminating, limiting, modifying or otherwise affecting the validity,
effectiveness, enforceability, perfection and priority of the 

  

					
	 	  	2	  	 

 
security interests or the pledges created and affected in respect thereof. To the extent that any security interest or pledge granted pursuant to the
Original Security Documents relates to collateral in which the Grantors have previously granted a security interest to the Collateral Agent, this IP Security Agreement shall, except as specifically provided herein, including, without limitation, in
the last paragraph of Section 1, confirm the validity, effectiveness, enforceability and continuation of such security interest or pledge as against the Grantors. All of the terms and provisions of the Original Security Documents are hereby
confirmed and ratified in all respects, except as specifically modified herein. 
  
 Without limiting the generality of the foregoing, this IP Security Agreement secures, as to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and would be owed by such Grantor to
any Secured Party under the Loan Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party. 
  
 SECTION 3. Recordation. Each Grantor authorizes and requests that the
Register of Copyrights, the Commissioner of Patents and Trademarks and any other applicable government officer record this IP Security Agreement. 
  
 SECTION 4. Execution in Counterparts. This IP Security Agreement may be executed in any number of counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
  
 SECTION 5. Grants, Rights and Remedies. This IP Security Agreement has been entered into in conjunction with the provisions of the Security
Agreement. Each Grantor does hereby acknowledge and confirm that the grant of the security interest hereunder to, and the rights and remedies of, the Collateral Agent with respect to the Collateral are more fully set forth in the Security Agreement,
the terms and provisions of which are incorporated herein by reference as if fully set forth herein. 
  
 SECTION 6. Governing Law. This IP Security Agreement shall be governed by, and construed in accordance with, the laws of the State of New York.

  
 SECTION 7. Intercreditor and Subordination Agreements.
Notwithstanding anything contained herein to the contrary, this Agreement and the rights and obligations of the parties hereunder are subject to the terms and conditions of the Intercreditor and Subordination Agreements. 
  
 * * * 
  

					
	 	  	3	  	 

 IN WITNESS WHEREOF, each Grantor has caused this IP Security Agreement to be duly executed and delivered
by its officer thereunto duly authorized as of the date first above written. 
  

			
	INTERSTATE FIBERNET, INC.
		
	By	 	 
	 	 	 Name:
 Title:

	
	 Address for Notices:
 1791 O.G. Skinner
Drive
 West Point, GA 31833
 Attention:

	
	ITC^DELTACOM, INC.
		
	By	 	 
	 	 	 Name:
 Title:

	
	 Address for Notices:
 1791 O.G. Skinner
Drive
 West Point, GA 31833
 Attention:

	
	ITC^DELTACOM COMMUNICATIONS INC.
		
	By	 	 
	 	 	 Name:
 Title:

	
	 Address for Notices:
 1791 O.G. Skinner
Drive
 West Point, GA 31833
 Attention:

  

					
	 	  	4	  	 

			
	 BUSINESS TELECOM, INC.

		
	By:	 	 
	 	 	 Name:
 Title:

	
	 Address for Notices:
 1791 O.G. Skinner
Drive
 West Point, GA 31833
 Attention:

	
	 BTI TELECOM CORP.

		
	By:	 	 
	 	 	 Name:
 Title:

	
	 Address for Notices:
 1791 O.G. Skinner
Drive
 West Point, GA 31833
 Attention:

	 
	
	 BUSINESS TELECOM OF VIRGINIA, INC.

		
	By:	 	 
	 	 	 Name:
 Title:

	
	 Address for Notices:
 1791 O.G. Skinner
Drive
 West Point, GA 31833
 Attention:

  

					
	 	  	 	  	 

 Exhibit D to the 
 Security Agreement 
  
 FORM OF INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT 
  
 This INTELLECTUAL PROPERTY SECURITY AGREEMENT SUPPLEMENT (this “IP Security Agreement Supplement”) dated
                    ,             , is made by the Person listed on the
signature page hereof (the “Grantor”) in favor of Wells Fargo Bank, N.A., as collateral agent (the “Collateral Agent”) for the Secured Parties (as defined in the Credit Agreement referred to
below). 
  
 WHEREAS, the Borrower and the other loan parties named
therein entered into a Third Amended and Restated Credit Agreement, dated as of March 29, 2005 (the “Third Amended Credit Agreement”), with the lender parties and the agents named therein; 
  
 WHEREAS, pursuant to the Third Amended Credit Agreement, the Grantor and
certain other Persons executed and delivered that certain Third Amended and Restated Security Agreement, dated as of March 29, 2005, to the Collateral Agent (as amended, amended and restated, supplemented or otherwise modified from time to time, the
“Security Agreement”) and to create a short form version of the Security Agreement covering certain intellectual property of the Grantor and such other Persons for recording with the U.S. Patent and Trademark Office, the
United States Copyright Office and other governmental authorities, the Grantor and such other Persons have executed and delivered that certain Third Amended and Restated Intellectual Property Security Agreement made by the Grantor and such other
Persons to the Collateral Agent, dated as of March 29, 2005 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “IP Security Agreement”); and 
  
 WHEREAS, under the terms of the Security Agreement and the IP Security
Agreement, the Grantor has granted a security interest in the Additional Collateral (as defined in Section 1 below) of the Grantor to the Collateral Agent for the ratable benefit of the Secured Parties and has agreed as a condition thereof to
execute this IP Security Agreement Supplement for recording with the U.S. Patent and Trademark Office, the United States Copyright Office and other governmental authorities; 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Grantor agrees as follows: 
  
 SECTION 1. Confirmation of Grant
of Security. The Grantor hereby acknowledges and confirms, subject to the terms and conditions of the Intercreditor and Subordination Agreement, the grant of a security interest to the Collateral Agent for the ratable benefit of the Secured
Parties (subject to the terms of the Third Amended Credit Agreement and this IP Security Agreement Supplement) under the Security Agreement and the IP Security 

  

					
	Third Amended and Restated Security Agreement	  	2	  	 

 
Agreement in and to all of the Grantor’s right, title and interest in and to the following (the “Additional Collateral”):

  
 (i) the United States, international and
foreign patents and patent applications, set forth in Schedule A hereto, together with all reissues, divisions, continuations, continuations-in-part, extensions and reexaminations thereof, and all rights therein provided by international treaties or
conventions (the “Patents”); 
  
 (ii) the United States and foreign trademark and service mark registrations and applications set forth in Schedule B hereto (the “Trademarks”); 
  
 (iii) United States and foreign copyright registrations and applications set forth in Schedule C hereto (the
“Copyrights”); 
  
 (iv) any and all claims for damages for past, present and future infringement, misappropriation or breach with respect to the Patents, Trademarks and Copyrights, with the right, but not the obligation, to sue for and collect, or otherwise
recover, such damages; and 
  
 (v) any and all
proceeds of the foregoing. 
  
 SECTION 2. Supplement to
Security Agreement and IP Security Agreement. Schedule V to the Security Agreement and Schedule[s] [A,] [B and] [C] to the IP Security Agreement are each, effective as of the date hereof, hereby supplemented to add to such Schedules the
Additional Collateral. 
  
 SECTION 3. Recordation. The
Grantor authorizes and requests that the Register of Copyrights, the Commissioner of Patents and Trademarks and any other applicable government officer to record this IP Security Agreement Supplement. 
  
 SECTION 4. Governing Law. This IP Security Agreement Supplement shall
be governed by, and construed in accordance with, the laws of the State of New York. 
  
 IN WITNESS WHEREOF, the Grantor has caused this Agreement to be duly executed and delivered by its officer thereunto duly authorized as of the date first above written. 
  

			
	 [NAME OF GRANTOR]

		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	 Address for Notices:

	
	 
	
	 
	
	 

  
 [ADD
ACKNOWLEDGMENT FORM IF NEEDED] 
  

					
	 	  	3	  	 

 Exhibit E to the 
 Security Agreement 
  
 FORM OF SECURITIES ACCOUNT CONTROL AGREEMENT 
  
 CONTROL AGREEMENT dated as of             ,             , among
            , a                      (the
“Grantor”), Wells Fargo Bank, N.A., as Collateral Agent (the “Secured Party”), and             , as securities intermediary (the
“Securities Intermediary”). 
  
 PRELIMINARY
STATEMENTS: 
  
 (1) The Grantor is party to a Third Amended and
Restated Security Agreement, dated as of March 29, 2005 (as may be amended from time to time, the “Third Amended and Security Agreement”) pursuant to which the Grantor has granted the Secured Party a security interest (the
“First Lien Security Interest”) in account no.              maintained by the Securities Intermediary for the Grantor (the “Account”).

  
 (2) The Grantor is party to an Amended and Restated Security
Agreement, dated as of March 29, 2005 (as may be amended from time to time, the “Second Lien Security Agreement”), pursuant to which the Grantor has granted to General Electric Capital Corporation (in its capacity as
collateral agent, “GECC”) a security interest (the “Second Lien Security Interests”) in the Account. 
  
 (3) The Grantor is party to a Security Agreement, dated as of March 29 2005 (as may be amended from time to time, the “Third Lien Security
Agreement”), pursuant to which the Grantor has granted to Welsh, Carson, Anderson & Stowe VIII, L.P. (in its capacity as collateral agent, the “WCAS” and together with the Secured Party and GECC, the
“Agents”), a security interest (the “Third Lien Security Interest” and together with the First Lien Security Interest and Second Lien Security Interest, the “Security
Interests”) in the Account. 
  
 (4) The Secured
Party, GECC and other persons listed on the signature pages thereof are parties to an Intercreditor and Subordination Agreement, dated as of October 6, 2003 (as amended, the “Second Lien Intercreditor and Subordination
Agreement”) and the Agents and other persons listed on the signature pages thereof are parties to a Third Lien Intercreditor and Subordination Agreement, dated as of March 29, 2005 (the “Third Lien Intercreditor and
Subordination Agreement” and together with the Second Lien Intercreditor Agreement, the “Intercreditor and Subordination Agreements”). 
  
 (5) Pursuant to the terms of the Intercreditor and Subordination Agreements, each of the Agents has appointed the others to
act as agent for the purpose of perfecting the liens of such appointing person on the Company’s collateral, including, without limitation, the Account and Account Funds. 
  

					
	 	  	 	  	 

 (2) Terms defined in Article 8 or 9 of the Uniform Commercial Code in effect in the State of New York
(“N.Y. Uniform Commercial Code”) are used in this Agreement as such terms are defined in such Article 8 or 9. 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual agreements contained herein, the parties hereto hereby agree as follows: 
  
 Section 1. The Account. The Securities Intermediary represents and
warrants to, and agrees with, the Secured Party that: 
  
 (a) The
Securities Intermediary maintains the Account for the Grantor, and all property held by the Securities Intermediary for the account of the Grantor is, and shall continue to be, credited to the Account. 
  
 (b) The Account is a securities account. The Securities Intermediary is the
securities intermediary with respect to the property credited from time to time to the Account. The Grantor is the entitlement holder with respect to the property credited from time to time to the Account. 
  
 (c) The Securities Intermediary’s jurisdiction with respect to the
Account is, and shall continue to be for so long as the Security Interests shall be in effect, the State of New York. 
  
 (d) Exhibit A attached hereto is a statement of the property credited to the Account on the date hereof. 
  
 (e) The Securities Intermediary does not know of any claim to or interest in
the Account or any property credited to the Account, except for claims and interests of the parties referred to in this Agreement. 
  
 Section 2. Control by Secured Party. The Securities Intermediary shall comply with all notifications it receives directing it to transfer or redeem
any property in the Account (each an “Entitlement Order”) or other directions concerning the Account (including, without limitation, directions to distribute to the Secured Party proceeds of any such transfer or redemption or
interest or dividends on property in the Account) originated by the Secured Party without further consent by the Grantor or any other person. 
  
 Section 3. Grantor’s Rights in Account. (a) Except as otherwise provided in this Section 3, the Securities Intermediary shall comply with
Entitlement Orders originated by the Grantor without further consent by the Secured Party. 
  
 (b) Until the Securities Intermediary receives a notice from the Secured Party that the Secured Party shall exercise exclusive control over the Account (a “Notice of Exclusive Control”), the
Securities Intermediary may distribute to the Grantor all funds and other property held in the Account. 
  

					
	 	  	2	  	 

 (c) The Securities Intermediary shall not comply with any Entitlement Order originated by the Grantor
that would require the Securities Intermediary to make a free delivery to the Grantor or any other person. 
  
 (d) If the Securities Intermediary receives from the Secured Party a Notice of Exclusive Control, the Securities Intermediary shall cease: 
  
 (i) complying with Entitlement Orders or other directions concerning the
Account originated by the Grantor and 
  
 (ii) distributing to the
Grantor any funds or other property held in the Account. 
  
 Section 4. Priority of Secured Party’s Security Interest. (a) The Securities Intermediary subordinates in favor of the Agents any security interest, lien, or right of set-off it may have, now or in the future, against the
Account or property in the Account, except that the Securities Intermediary shall retain its prior lien on property in the Account to secure payment for property purchased for the Account and normal commissions and fees for the Account. 

 
 (b) The Securities Intermediary shall not agree with any third party that
the Securities Intermediary shall comply with Entitlement Orders originated by the third party. 
  
 Section 5. Statements, Confirmations, and Notices of Adverse Claims. (a) The Securities Intermediary shall send copies of all statements and
confirmations for the Account simultaneously to the Grantor and the Agents. 
  
 (b) When the Securities Intermediary knows of any claim or interest in the Account or any property credited to the Account other than the claims and interests of the parties referred to in this Agreement, the
Securities Intermediary shall promptly notify the Agents and the Grantor of such claim or interest. 
  
 Section 6. The Securities Intermediary’s Responsibility. (a) Except for permitting a withdrawal, delivery, or payment in violation of Section
3, the Securities Intermediary shall not be liable to the Secured Party for complying with Entitlement Orders or other directions concerning the Account from the Grantor that are received by the Securities Intermediary before the Securities
Intermediary receives and has a reasonable opportunity to act on a Notice of Exclusive Control. 
  
 (b) The Securities Intermediary shall not be liable to the Grantor for complying with a Notice of Exclusive Control or with an Entitlement Order or other
direction concerning the Account originated by the Secured Party; even if the Grantor notifies the Securities Intermediary that the Secured Party is not legally entitled to issue the Notice of Exclusive Control or Entitlement Order or such other
direction unless the Securities Intermediary takes the action after it is served with an injunction, restraining order, or other legal process enjoining it from doing so, issued by a court of competent jurisdiction, and had a reasonable opportunity
to act on the injunction, restraining order or other legal process. 
  

					
	 	  	3	  	 

 (c) This Agreement does not create any obligation of the Securities Intermediary except for those
expressly set forth in this Agreement and in Part 5 of Article 8 of the N.Y. Uniform Commercial Code. In particular, the Securities Intermediary need not investigate whether the Secured Party is entitled under the Secured Party’s agreements
with the Grantor to give an Entitlement Order or other direction concerning the Account or a Notice of Exclusive Control. The Securities Intermediary may rely on notices and communications it believes to be given by the appropriate party.

  
 Section 7. Indemnity. The Grantor shall indemnify the
Securities Intermediary, its officers, directors, employees and agents against claims, liabilities and expenses arising out of this Agreement (including, without limitation, reasonable attorney’s fees and disbursements), except to the extent
the claims, liabilities or expenses are caused by the Securities Intermediary’s gross negligence or willful misconduct as found by a court of competent jurisdiction in a final, non-appealable judgment. 
  
 Section 8. Termination; Survival. (a) The Secured Party may terminate
this Agreement by notice to the other Agents, the Securities Intermediary and the Grantor. If the Secured Party notifies the Securities Intermediary that the Security Interests have terminated, this Agreement shall immediately terminate. 

 
 (b) The Securities Intermediary may terminate this Agreement on 60
days’ prior notice to the Agents and the Grantor, provided that before such termination the Agents and the Grantor shall make arrangements to transfer the property in the Account to another securities intermediary that shall have
executed, together with the Grantor, a control agreement in favor of the Agents in respect of such property in substantially the form of this Agreement or otherwise in form and substance satisfactory to the Agents. 
  
 (c) Sections 6 and 7 shall survive termination of this Agreement. 

 
 Section 9. Governing Law. This Agreement and the Account shall be
governed by the law of the State of New York. The Securities Intermediary and the Grantor may not change the law governing the Account without the Secured Party’s express prior written agreement. 
  
 Section 10. Entire Agreement. This Agreement is the entire agreement,
and supersedes any prior agreements, and contemporaneous oral agreements, of the parties concerning its subject matter. 
  
 Section 11. Amendments. No amendment of, or waiver of a right under, this Agreement shall be binding unless it is in writing and signed by the
parties hereto. 
  
 Section 12. Financial Assets. The
Securities Intermediary agrees with the Secured Party and the Grantor that, to the fullest extent permitted by applicable law, all property credited from time to time to the Account shall be treated as financial assets under Article 8 of the N.Y.
Uniform Commercial Code. 
  

					
	 	  	4	  	 

 Section 13. Notices. A notice or other communication to a party under this Agreement shall be in
writing (except that Entitlement Orders may be given orally), shall be sent to the party’s address set forth under its name below or to such other address as the party may notify the other parties, and shall be effective on receipt. 

 
 Section 14. Binding Effect. This Agreement shall become effective
when it shall have been executed by the Grantor, the Secured Party and the Securities Intermediary, and thereafter shall be binding upon and inure to the benefit of the Grantor, the Secured Party and the Securities Intermediary and their respective
successors and assigns; it being agreed that the Secured Party may assign its rights and obligations hereunder to GECC or WCAS without consent of the Securities Intermediary. 
  
 Section 15. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this
Agreement by telecopier shall be effective as delivery of an original executed counterpart of this Agreement. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date
first above written. 
  

			
	 [NAME OF GRANTOR]

		
	By:	 	 
	 	 	 Title:

		
	 	 	 Address:

		
	 	 	 
		
	 	 	 
		
	 	 	 
	
	 WELLS FARGO BANK N.A., as Collateral Agent

		
	By:	 	 
	 	 	 Title:

		
	 	 	 Address:

		
	 	 	 
		
	 	 	 

  

					
	 	  	5	  	 

			
		
	 	 	 
	
	 [NAME OF SECURITIES INTERMEDIARY]

		
	By:	 	 
	 	 	 Title:

		
	 	 	 Address:

		
	 	 	 
		
	 	 	 
		
	 	 	 

  

					
	 	  	6

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