Document:

Exhibit 10.2

Exhibit 10.2

NUVOX, INC.
SERIES D LOAN PROGRAM

        1.     
Purpose.  The purpose of the NuVox,  Inc. (the  "Company")  Series D Loan Program (the "Loan  Program") is
to provide a means by which  Participants  may  facilitate  the purchase of their pro rata shares of Units pursuant
to the Company's Offering referred to below.

        2.     
Definitions.  As used herein,  and in the documents  attached  hereto,  the following terms shall have the following meanings:

	 	        
(a)        Cause.     The term “Cause” shall mean (i) the willful and
continued failure by a Participant to substantially perform his or her duties
with the Company (other than any such failure resulting from incapacity due to
physical or mental illness), or (ii) the willful engaging by the
Participant in conduct which is demonstrably and materially injurious to the
Company, monetarily or otherwise. For purposes of this definition, no act, or
failure to act, shall be deemed “willful” unless done, or omitted to
be done, by the Participant not in good faith and without reasonable belief that
his or her action or omission was in the best interest of the Company. 

	 	        
(b)        Board.     The term "Board" shall mean the Board of Directors of the Company.

	 	        
(c)        Committee.      The term “Committee” shall mean the Compensation
Committee of the Board or other committee of the Board selected to administer
this Plan which shall consist of not less than two non-employee members of the
Board. 

	 	        
(d)        Disability.     Except as otherwise provided by the Committee, a Participant
shall be considered to have a “Disability” during the period in which
he or she is unable, by reason of a medically determinable physical or mental
impairment, to carry out his or her duties with the Company, which condition, in
the discretion of the Committee, is expected to have a duration of not less than
120 days. 

	 	        
(e)        Fair  Market  Value.     The term "Fair  Market  Value" of Company  stock shall mean the fair market value per share of such stock, as reasonably determined in good faith by the Committee.

	 	        
(f)        Good Reason.      The term “Good Reason” shall mean: (i) a material
reduction in compensation or in aggregate benefits without the
Participant’s consent; provided, that the Company may at any time amend,
modify, suspend or terminate any bonus, incentive compensation or other benefit
plan or program provided to the Participant for any reason and without the
Participant’s consent if such modification, suspension or termination is
consistently applied to all similarly situated employees and does not violate
the express terms of an employment agreement or other arrangement with the
Participant; (ii) a material reduction in the Participant’s title, status,
authority or responsibility at the Company; or (iii) the Participant has been
notified that his or her principal place of work will be relocated by a distance
of fifty (50) miles or more from his or her current principal place of work and
the Participant has not consented to the relocation. 

	 	        
(g)        Loan Application Form.     The term “Loan Application Form” shall
mean the Loan Application Form, in substantially the form of Exhibit A
attached hereto, which a Participant must complete and return to the Company for
purposes of determining the loan amount requested by the Participant. 

	 	        
(h)        Offering.     The term  "Offering"  shall mean the Company's  2001 offering of an aggregate of up to
66,666,667 Units.

	 	        
(i)        Participant.     The term “Participant” shall mean any employee of
the Company (or certain former employees rendering services in a consulting or
outside advisor capacity, as determined by the Committee) on the closing date of
the Offering holding shares of common stock or preferred stock of the Company
immediately prior to the Offering. 

	 	        
(j)        Pledge Agreement.     The term “Pledge Agreement” shall mean the
Pledge Agreement, in substantially the form of Exhibit B attached hereto,
which secures a Participant’s obligations under the Promissory Note by
providing the Company with a security interest in shares of Series D Preferred
acquired by such Participant in the Offering with the proceeds of a loan under
the Loan Program. 

	 	        
(k)     Promissory  Note. The term  "Promissory  Note" shall mean the Promissory  Note, in  substantially
the form of Exhibit C attached hereto, which evidences a loan to a Participant under the Loan Program. 

	 	        
(l)        Required  Loan  Documents.     The term  "Required  Loan  Documents"  shall  mean,  in  respect of a
Participant,  such Participant's:  (i) Loan Application Form, (ii) Promissory Note, (iii) Pledge Agreement and (iv) stock power attached to the Pledge Agreement.

1

	 	        
(m)        Retirement.     The term “Retirement” shall mean the occurrence of
a Participant’s date of termination under circumstances that constitute
such Participant’s retirement at normal retirement age under the terms of
the qualified retirement plan of the Company that is extended to the Participant
immediately prior to the Participant’s date of termination or, if no such
plan is extended to the Participant on his or her date of termination, under the
terms of any applicable retirement policy of the Company. 

	 	        
(n)        Series B Preferred.     The term “Series B Preferred” shall mean
the Series B Preferred Stock, $0.01 par value per share, of the Company. 

	 	        
(o)        Series D Preferred.     The term “Series D Preferred” shall mean
the Series D Convertible Preferred Stock, $0.01 par value per share, of the
Company to be issued in the Offering. 

	 	        
(p)        Series D Warrant.     The term “Series D Warrant” shall mean a
five-year warrant issued in the Offering, which will entitle the holder thereof
to purchase one share of Series D Preferred at an exercise price of $1.50 per
share. 

	 	        
(q)        Series E Preferred.     The term “Series E Preferred” shall mean
the Series E-1 through Series E-13 convertible preferred stock, $0.01 par value
per share, of the Company to be issued on exercise of the Series E Warrants. 

	 	        
(r)        Series E Warrants.     The term “Series E Warrants” shall mean
warrants, expiring March 31, 2002, to be issued in the Offering, which will
entitle the holder thereof to purchase shares of various Series E Preferred. 

	 	        
(s)        Units.     The term "Units"  shall mean the Units offered in the  Offering,  each  consisting of one share of Series D Preferred, a Series D Warrant and Series E Warrants.

        3.     
Administration of Loan Program.  The Loan Program shall be administered  by the Committee.  The Committee shall have plenary
authority to: (a) interpret and construe the provisions of the Loan Program and
the Required Loan Documents, (b) prescribe, amend and rescind rules relating to
the Loan Program, (c) determine the terms and provisions of the Required Loan
Documents (which need not be identical), (d) employ agents, attorneys,
accountants or other persons for such purposes as the Committee considers
necessary or desirable and (e) make all other determinations which the Committee
believes are necessary or advisable for the proper administration of the Plan.
The Committee’s determination on matters relating to the Loan Program shall
be final and conclusive on the Company and all Participants. In addition, the
Committee may authorize one or more of its members or any officer of the Company
to execute and deliver documents and perform other administrative acts pursuant
to the Loan Program. 

        4.     
Purchase Loans.  The Committee may extend loans to Participants in an
amount that shall not exceed 100% of the purchase price of the
Participant’s pro rata share of Units to which he or she is entitled
pursuant to the Offering, less any portion of the purchase price for which such
Participant has elected to make a cash investment in connection with the
Offering. The proceeds of the loans shall be used solely for the purpose of
purchasing Units. 

        5.     
Procedure.

        (a)     
In order to effectuate a loan under the Loan Program, a Participant must
complete and return the Required Loan Documents to the Company prior to, or
concurrently with, his or her delivery of subscription documents for Units. Upon
receipt and approval by the Committee of the Required Loan Documents submitted
by the Participant, which approval shall be in the sole discretion of the
Committee, the Committee shall extend to such Participant a loan in the amount
indicated on line 6 of the Participant’s Loan Application Form, subject to
the terms set forth in the Required Loan Documents and described herein. 

        (b)     
In the event the Committee does not approve a requested loan, due to failure to
properly execute the Required Loan Documents or otherwise, the Committee shall
promptly provide the Participant with notice setting forth the reason(s) why his
or her loan request is being rejected and whether the Participant may resubmit
his or her request for a loan. 

        (c)     Loans will be made to a Participant by crediting the amount of such loan against
the purchase price of the Units which the Participant is purchasing. The Company
shall promptly notify the Participant of the Committee’s approval of his or
her loan. 

        6.     
Promissory Note.  Each loan shall be evidenced by a Promissory  Note. The principal  balance of each loan shall  accrue  interest at a rate equal to the mid-term  applicable  federal rate in effect on the date the loan is
made, compounded semiannually.

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        7.     
Pledge of Shares.  Each Participant shall enter into a Pledge Agreement,
which provides the Company with a security interest in all of the Series D
Preferred purchased by such Participant in the Offering with the proceeds of a
loan from the Loan Program. 

        8.     
Escrow of Series E Preferred.  Upon exercise of any Series E Warrants
prior to full satisfaction of a Participant’s loan, such Participant shall
be required to deliver to the Company a stock power in respect of the shares of
Series E Preferred to be issued upon exercise, executed by the Participant in
blank. Certificates representing the shares of Series E Preferred for which the
Series E Warrants are being exercised shall be registered in the name of the
Participant and, along with the accompanying stock power, deposited with the
Secretary of the Company. In the event a loan is not repaid in full when due, as
provided in the Promissory Note, and the value of the shares of Series D
Preferred pledged to secure such payment is less than the amount required to
repay the unpaid principal and accrued interest of the loan in full, a
percentage of any shares of Series E Preferred issued upon exercise of the
Series E Warrants equal to the unpaid percentage of the loan (the “Unpaid
Percentage”) shall be forfeited and canceled upon issuance by the Company
to the Participant of a percentage of each of the forms of consideration
delivered by the Participant in payment for such forfeited and canceled shares
of shares of Series E Preferred equal to the Unpaid Percentage. Any shares of
Series E Preferred remaining in escrow after application of this Section 8 shall
be distributed to the Participant. 

        9.     
Compliance With Applicable Laws.  The Loan Program and the loans granted  hereunder shall be construed in accordance with the laws of the Sate of Missouri, without giving effect to principles of conflicts of laws.

        10.     
Miscellaneous.

	 	        
(a)     The Committee shall have plenary authority to amend the Loan Program from
time-to-time; provided, however, that no such amendment which adversely
affects the Participant with respect to any loans outstanding prior to the
adoption of such amendment shall apply to such outstanding loans unless required
by applicable law. 

	 	        
(b)     The provision of a loan under the Loan Program shall not confer upon a
Participant the right to continue as an employee or service provider in any
capacity with the Company, or interfere in any way with the rights of the
Company to terminate such Participant’s status as an employee or service
provider. 

	 	        
(c)     Records of the Company shall be conclusive for all purposes under this Loan
Program, unless determined by the Committee to be incorrect. 

	 	        
(d)     If any provision of the Loan Program, or any Required Loan Document, is declared
by a court of competent jurisdiction to be illegal, invalid or unenforceable for
any reason whatsoever, such illegality, invalidity or unenforceability shall not
affect the balance of the terms and provisions of the Loan Program and the
Required Loan Documents, which terms and provisions shall remain binding and
enforceable. 

	 	        
(e)     Whenever any notice is required or permitted under this Loan Program or the
Required Loan Documents, such notice must be in writing and personally delivered
or sent by mail or delivery by a nationally recognized courier service. Any
notice required or permitted to be delivered under the Loan Program or any
Required Loan Document shall be deemed to be delivered on the date on which it
is personally delivered, or, if mailed, whether actually received or not, on the
third business day after it is deposited in the United States mail, certified or
registered, postage prepaid, addressed to the person who is to receive it, or,
if by courier, seventy-two (72) hours after it is sent, addressed to the person
who is to receive it. For purposes of the Loan Program and the Required Loan
Documents, the address of each Participant shall be the address specified on
such Participant’s Loan Application Form, and the address of the Company
shall be as follows: 

	 	
NuVox, Inc.

Attention: Secretary

16090 Swingley Ridge Road, Suite 500

Chesterfield, Missouri 63017

 The Company or the Participant may change, at any time and from time-to-time, by
written notice to the other, the address that it or he or she had previously
specified for receiving notices by submitting such change in accordance with the
notice procedure set forth in this Subsection 10(e).

	 	        
(f)     Any person entitled to notice under the Loan Program or any Required Loan Document may waive such notice.

	 	        
(g)     The Loan Program shall be binding upon the Participant and his or her legal
representatives, heirs, legatees and distributees, and upon the Company and its
successors and assigns. 

3

	 	        
(h)     All expenses incident to the administration, termination or protection of the
Loan Program, including, but not limited to, legal and accounting fees, shall be
paid by the Company; provided, however, the Company may recover
any and all damages, fees, expenses and costs arising out of any actions taken
by the Company to enforce its rights under the Loan Program or any Required Loan
Document. 

Effective Date: August 23, 2001.

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EXHIBIT A
LOAN APPLICATION FORM

	1.     Name of Loan Applicant:

2.     Address of Loan Applicant:

3.     Number of Units Applicant is Purchasing
(refer to your Offer Letter to determine)
maximum number of Units you may purchase
based on your pro rata share of the ffering)

4.     Aggreggate Purchase Price of Units Being 
Purchased (multiply number of Units specified
in #3 by $1.50)

5.     Amount of Cash Investment (if any) by
Participant to Purchase Units

6.     Amount of Loan Requested (as determined
by subtracting#5 from #4)	_____________________________________

_____________________________________

________________________________ Units

           $_____________________

            $_____________________

           $_____________________

Applicant acknowledges:

	That applicant has reviewed, understands and agrees to be bound by all of the
terms of the Loan Program and the Required Loan Documents; 

	That this loan will be secured by a pledge of the shares of Series D Preferred
received in connection with the purchase of Units by applicant with the proceeds
of the loan, subject to the terms and provisions set forth in the Loan Program,
until the loan is repaid in full; and

	Two-thirds of the principal and interest on the loan will be without recourse,
with the remaining one-third of the principal and interest full recourse.

		APPLICANT:

	
	___________________, 2001	

	

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EXHIBIT B
PLEDGE AGREEMENT

        THIS
PLEDGE AGREEMENT (the “Pledge Agreement”) is made and entered into
as of the ___ day of ________, 2001, by and between NuVox, Inc., a Delaware
corporation (the “Company”), and the undersigned
(“Pledgor”). 

WITNESSETH

        WHEREAS,
pursuant to the NuVox, Inc. Series D Loan Program (the “Loan
Program”), in connection with Pledgor’s purchase of certain Units
pursuant to the Company’s Offering, Pledgor is delivering a promissory note
dated as of the date hereof (the “Note”) in full [or partial
payment] of the purchase price for the Units purchased by Pledgor; and 

        WHEREAS,
the Company requires that the Note be secured by a pledge of the shares of
Series D Preferred received in connection with the Units which are purchased by
Pledgor with the proceeds of the Note (collectively referred to herein as the
“Pledged Stock” unless otherwise referred to separately); 

        NOW,
THEREFORE, in consideration of the Company’s acceptance of the Note as full
or partial payment for the Units purchased by Pledgor, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows: 

        1.     
Loan Program.  This Pledge  Agreement is subject to all of the terms and  conditions  set forth in the Loan Program.  All capitalized  terms not otherwise  defined in this Pledge Agreement shall have the meaning ascribed to
them in the Loan Program or the Note.

        2.     
Security Interest.  Pledgor hereby pledges, assigns, grants, transfers and
delivers to the Company a security interest (the “Security Interest”)
in (a) the Pledged Stock, (b) any liquidation preference paid upon the Pledged
Stock prior to the return of the Pledged Stock pursuant to Section 13 hereof and
(c) any securities issued by the Company upon conversion or adjustment of the
Pledged Stock (as described in Sections 6 and 7 hereof) prior to the return of
the Pledged Stock pursuant to Section 13 hereof (collectively, the
“Collateral”). 

        3.     
Deposit of Collateral.  Until  full  satisfaction  of the Note,  the  Collateral  shall be held in escrow
pursuant the following provisions.

	 	        (a)
     Upon purchase of the Units, certificates representing the shares of Series D
Preferred included in the Units which were purchased with the proceeds of the
Note shall be registered in the name of Pledgor and deposited with the Secretary
of the Company (“Escrow Holder”). Along with a fully-executed copy of
this Pledge Agreement, Pledgor shall deliver to the Company a stock power in the
form attached hereto as Attachment A, executed by Pledgor in blank for
use in transferring all, or a portion of, such shares of Series D Preferred (and
any shares received upon conversion or adjustment thereof prior to the
termination of this Pledge Agreement) to the Company if, and when, required
pursuant to this Pledge Agreement upon an Event of Default (as defined in the
Note). The stock power will be deposited with the Escrow Holder. 

	 	        (b)
     Certificates representing any security issued as a result of a conversion or
adjustment of the Pledged Stock (as described in Sections 6 and 7 hereof) prior
to the return of the Pledged Stock pursuant to Section 13 hereof shall be
deposited with the Escrow Holder. 

	 	        (c)
     The Collateral shall be held by the Escrow Holder in strict accordance with the
terms and conditions of this Pledge Agreement and applicable law. Pledgor and
the Company mutually agree that the Escrow Holder shall not be liable to any
party to this Pledge Agreement (or to any other party) for any actions or
omissions unless the Escrow Holder is grossly negligent or intentionally
fraudulent in carrying out the duties of the Escrow Holder under this Pledge
Agreement and the Company shall hold the Escrow Holder harmless from any and all
liability and expenses incurred as a result of acting as the Escrow Holder
hereunder. The Escrow Holder may rely upon any letter, notice or other document
executed by any signature purported to be genuine and may rely upon the advice
of counsel and obey any order of any court with respect to the transactions
contemplated by this Pledge Agreement. 

        4.     
Voting; Exercise.  During the term of this Pledge Agreement, for so long
as no Event of Default shall have occurred, Pledgor shall have the sole and
absolute right to vote the Pledged Stock and any other securities received upon
conversion or adjustment thereof. 

        5.     
Liquidation Preference.  In the event Pledgor is entitled to receive a
liquidation preference on the Pledged Stock prior to the return of the Pledged
Stock pursuant to Section 13 hereof, such liquidation preference shall be held
in escrow in accordance with the terms of this Pledge Agreement. 

6

        6.     
Conversion of Preferred Stock.  Prior to full satisfaction of the Note,
Pledgor may convert any shares of Series D Preferred subject to this Pledge
Agreement into common stock in accordance with his or her conversion rights
associated therewith; provided, however, such shares of common
stock received pursuant to the conversion shall be subject to the terms of this
Pledge Agreement in the same manner as the Pledged Stock originally pledged
hereunder. While held in escrow, all cash dividends paid on the Pledged Stock
shall be paid and/or delivered to Pledgor free and clear of the terms of this
Pledge Agreement. 

        7.     
Adjustments.  If, during the term of this Pledge Agreement, any share
dividend, reclassification, readjustment, or other change is declared or made in
the capital structure of Company, all new, substituted, and additional shares,
or other securities, issued with respect to the Pledged Stock by reason of any
such change shall be subject to the terms of this Pledge Agreement in the same
manner as the Pledged Stock originally pledged hereunder. 

        8.     
Presentations and Warranties.  Pledgor represents and warrants as follows:

	 	        (a)
     The Security Interest constitutes a valid and, upon delivery of the certificates
evidencing the Pledged Stock, first perfected security interest in all of the
Collateral for payment and performance of the Note. 

	 	        (b)
     Except as provided herein, Pledgor will not create, incur or suffer to exist any
lien or encumbrance on the Collateral except the Security Interest created
hereunder. 

	 	        (c)
     Pledgor shall take any and all actions reasonably necessary to defend title to
the Collateral against all persons and to defend the Security Interest of the
Company in the Collateral and the priority thereof against any lien or
encumbrance not expressly permitted hereunder. 

        9.     
Further Assurances.  Pledgor agrees that at any time and from
time-to-time, Pledgor shall promptly execute and deliver all further instruments
and documents, and take all further action that the Company may reasonably
request, in order to perfect and protect the Security Interest granted hereby or
to enable the Company to exercise and enforce the rights and remedies hereunder
with respect to any Collateral. 

        10.     
Secretary of Company Appointed as Attorney-In-Fact.  Pledgor hereby
irrevocably appoints the Secretary of the Company as Pledgor’s
attorney-in-fact, with full authority in the place and stead of Pledgor and in
his or her name or otherwise, from time-to-time in the Secretary’s
discretion, to take any action and to execute any instrument that the Company
may deem reasonably necessary or advisable to accomplish the purposes of this
Pledge Agreement. 

        11.     
No Disposition.  During the term of this Pledge Agreement, Pledgor shall
not sell or otherwise dispose of the Collateral or any interest therein;
provided, however, that, subject to any limitations imposed in any
shareholders’ agreement, registration rights agreement or
shareholders’ agreement which may apply with respect to the Collateral, the
Collateral may be sold in whole or part provided the proceeds from such sale or
disposition of the Collateral are used to pay off the Note in full, or should
the proceeds from such sale or disposition of the Collateral be insufficient to
pay off any remaining balance of the Note, provided that Pledgor immediately
pays off the remaining balance of the Note with funds from other sources and,
prior to any such sale or disposition of the Collateral, provides the Company
with sufficient evidence of the availability of such other funds, which the
Company shall determine in its sole discretion whether such other funds are in
fact “sufficient” to pay off the remaining balance. In the event
Pledgor disposes of the Collateral in contravention of this Section 11, the
Security Interest of the Company shall continue in such Collateral
notwithstanding such disposition. 

        12.     
Remedies Under Default.  If, upon or after the occurrence of an Event of
Default, the Company elects to exercise remedies under this Pledge Agreement,
then upon thirty (30) days’ advance notice to the Pledgor, the Company
shall have the following rights with respect to the Collateral: 

	 	        (a)
     The Company may, in its sole and absolute discretion, direct the Escrow Holder
to transfer in the name of the Company Collateral then held in escrow in an
amount sufficient to satisfy the outstanding obligations under the Note. 

	 	        (b)
     The Company may exercise (in compliance with all applicable securities laws) in
respect of the Collateral, and in addition to other rights and remedies provided
herein or otherwise available, all the rights and remedies of a secured party
after default under the Uniform Commercial Code in effect in the State of
Missouri at that time. 

	 	        (c)
     The Company may sell the Collateral, subject to the requirements of any
applicable federal or state law, at a public or private sale after giving
Pledgor any notices of notification as required by law. 

	 	        (d)
     Any cash proceeds received by the Company in respect of any sale of, collection
from, or other realization upon all or any part of the Collateral, and any other
cash proceeds held in escrow, shall be applied as follows: 

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	 	        (i)     To the extent  necessary,  proceeds shall be used to satisfy any of the  outstanding  obligations under the Note; and
 

	 	        (ii)     
Any surplus of cash or cash proceeds remaining after application of clause (i) shall be reassigned and delivered to Pledgor pursuant to Section 13 hereof. 

        13.     
Return of Collateral and Termination of Pledge Agreement.  This Pledge
Agreement shall terminate only upon the payment in full of the Note. Upon such
termination, the Escrow Holder shall deliver to Pledgor all Collateral (if any)
as shall not have been sold or otherwise applied by the Company to satisfy
Pledgor’s obligations hereunder, and Pledgor shall be discharged of all
further obligations under this Pledge Agreement. 

        14.     
Waivers and Authorizations of Pledgor.  Pledgor waives any right to
require the Company to proceed against any person, to proceed against or exhaust
any collateral, or to pursue any other remedy in its power before proceeding
against Pledgor in order to enforce the terms of this Pledge Agreement. 

         15.     
Governing Law.  This Pledge  Agreement,  and the rights and  obligations of the parties  hereto,  shall be
 governed  by and  construed  in  accordance  with the laws of the  State of  Missouri,  without  giving  effect  to
principles of conflicts of laws.

        16.     
Notices.  All  notices  provided  for by this  Pledge  Agreement  shall be made in  writing  pursuant  to
 procedure set forth in the Loan Program.

        17.     
Amendment.  This  Pledge  Agreement  may be  amended  or  altered  only  by the  execution  of a  written
 instrument by Pledgor and Company.

        18.     
Continuing Security Interest; Assignment. This Pledge Agreement shall
create a continuing security interest in the Collateral and shall (a) remain in
full force and effect until termination as provided in Section 13 hereof, (b) be
binding upon Pledgor, the Company and their respective successors, transferees
and assigns, and (c) inure, together with the rights, powers and remedies of
Pledgor and the Company hereunder, to the benefit of Pledgor, the Company and
their respective successors, transferees and assigns, as the case may be.
Pledgor shall not have the right to assign his or her rights or delegate his or
her obligations under this Pledge Agreement, or any interest therein, without
the express written consent of the Company. 

        19.     
Survial of Representations.  All  representations  and  warranties of Pledgor  contained in this Pledge
 Agreement shall survive the execution and delivery of this Pledge Agreement.

        20.     
Time is of the Essence; No Waiver; Cumulative Remedies.  Time and
exactitude of each of the terms, obligations, covenants and conditions of this
Pledge Agreement are hereby declared to be of the essence. No failure on the
part of the Company to exercise, and no delay in exercising, any right, power or
remedy hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right, power or remedy by the Company preclude any
other or further exercise thereof or the exercise of any other right, power or
remedy. All remedies hereunder are cumulative and are not exclusive of any other
remedies provided by law. 

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

		NUVOX, INC.

	
		______________________________
Name:
Title:

PLEDGOR

___________________________________
Pledgor's Signature

___________________________________
Pledgor's Name (type or print)	

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Attachment A

STOCK POWER AND ASSIGNMENT
SEPARATE FROM CERTIFICATE

        FOR
VALUE RECEIVED, and pursuant to that certain Pledge Agreement by and between the
undersigned and the NuVox, Inc., a Delaware corporation (“Company”),
dated as of __________________________ (the “Agreement”), the
undersigned hereby sells, assigns and transfers unto
______________________________________, ________________ shares of Series D
Convertible Preferred Stock of the Company, standing in the undersigned’s
name on the books of the Company represented by Certificate No(s). ________
delivered herewith (and, in the event such shares have been converted or
adjusted prior to termination of the Agreement, such different or additional
shares of stock issued upon such conversion or adjustment) and does hereby
irrevocably constitute and appoint the Secretary of the Company as the
undersigned’s attorney-in-fact, with full power of substitution, to
transfer the said stock on the books of the Company. THIS STOCK POWER AND
ASSIGNMENT MAY ONLY BE USED AS AUTHORIZED BY THE AGREEMENT. 

		Dated: _______________________, 2001

             _______________________________

             (Signature)

             _______________________________

             (Please Print Name)	

INSTRUCTIONS:  Please do not fill in any blanks other than the signature line and the line on which you print
your name.

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EXHIBIT C
PROMISSORY NOTE

        FOR
VALUE RECEIVED, the undersigned (“Borrower”) promises to pay to the
order of NuVox, Inc. (the “Company”), at its office at 16090 Swingley
Ridge Road, Suite 500, Chesterfield, Missouri 63017, the principal amount of
__________________________(the “Principal Amount”), with interest on
the unpaid Principal Amount compounded semiannually at the rate of
____________%. This note (“Note”) is issued under, and subject to, the
terms of the NuVox, Inc. 2001 Loan Program as in effect on the date hereof (the
“Loan Program”). All capitalized terms not otherwise defined in this
Note shall have the meaning ascribed to them in the Loan Program. 

        1.     
Payment of Principal and Interest.

	 	        (a)
     If not sooner paid, the entire Principal Amount, and all accrued and unpaid
interest thereon, shall be due and payable in lump sum on the Maturity Date,
which is the earlier of: (i) _________________, 2006, (ii) the date on which
Borrower’s employment or consulting is either involuntarily terminated by
the Company for Cause or voluntarily terminated by Borrower for reason other
than for death, Disability, Retirement or Good Reason (iii) the date on which
the Company elects to exercise its rights pursuant to Section 5 hereof as a
result of an Event of Default (as defined below) and (iv) the date on which
Borrower receives payment of a liquidation preference on the shares of Series D
Preferred subject to the Pledge Agreement; provided, however, that
if such Maturity Date shall fall on a Saturday, Sunday or public holiday (any
other day being a “Business Day”), such Maturity Date shall be deemed
to be the next succeeding Business Day. 

	 	        (b)
     Borrower may prepay all or any portion of this Note at any time and from
time-to-time prior to the Maturity Date without premium or penalty. 

	 	        (c)
     The Principal Amount and any outstanding interest accrued thereon may be repaid
either (i) in cash, (ii) by the surrender of shares of stock of the Company,
valued for this purpose at the Fair Market Value on the date of repayment. 

	 	        (d)
     Each payment of Borrower shall be applied to the extent of the available funds
from such payment in the following order: (i) first to the outstanding interest
which has accrued on the non-recourse portion of the Note, (ii) then to the
outstanding non-recourse portion of the Principal Amount, (iii) then to the
outstanding interest which has accrued on the recourse portion of the Note and
(iv) lastly to the outstanding recourse portion of the Principal Amount. 

        2.     
Recourse.  Two-thirds of the Principal Amount evidenced by this
Note, and any interest accrued thereon, shall be without recourse to Borrower.
One-third of the Principal Amount evidenced by this Note, and any interest
accruing thereon, shall be full recourse to Borrower, in which case the Company
shall have the rights described in Section 5(c) hereof with respect to such
recourse portion of the Note. 

        3.     
Pledged Collateral.  Pursuant to a certain Pledge Agreement dated as of
the date hereof between Borrower and the Company, Borrower’s obligations
under this Note are secured by a security interest granted to the Company in all
right, title and interest of Borrower in the Series D Preferred acquired with
the proceeds of the loan evidenced hereby, as described in the Pledge Agreement. 

        4.     
Event of Default.  An “Event of Default” as used herein
shall be any or all of the following: (a) failure of Borrower to pay within ten
(10) days after receipt from the Company of a written demand for payment after
Borrower has failed to pay when due any portion of the loan evidenced by this
Note or (b) the failure of Borrower to keep or perform any covenant, agreement
or condition contained in this Note, the Pledge Agreement or the Loan Program if
such failure is not cured within ten (10) days after Borrower received written
notice from the Company containing a reasonable description of such default. 

        5.     
Remedies Upon Event of Default.  Upon the occurrence of any Event of Default:

	 	        (a)
     At the option of the Company, the outstanding Principal Amount and interest
accrued thereon shall become immediately due any payable without notice or
demand on the part of the Company; 

	 	        (b)     The  Company  shall be  entitled  to  exercise  any and all rights to which it is  entitled  under the Pledge Agreement and this Note; and

	 	        (c)
With respect to the recourse portion of the Note, as described in Section 2
hereof, the Company shall have, in addition to its rights and remedies under
this Note and the Pledge Agreement (and without written notice and without
presentment, demand, protest, notice of protest or dishonor or any other notice
of default of any kind), full recourse against any real, personal, tangible or
intangible assets of Borrower, and may pursue any legal or equitable remedies
that are available with respect to such recourse obligation. 

10

        6.     
Governing Law.  This Note shall be governed by and  construed in accordance  with the laws of the State of
Missouri, without giving effect to principles of conflicts of laws.

        7.     
Waiver.  Borrower waives presentment for payment, demand, notice of
demand, notice of nonpayment or dishonor, protest and notice of protest of this
Note, and all other notices in connection with the delivery, acceptance,
performance, default or enforcement of the payment of this Note. Borrower hereby
agrees that failure of the Company to exercise any of its rights hereunder in
any instance (including, but not limited to, the Company’s rights upon the
occurrence of an Event of Default) shall not constitute a waiver thereof in that
or any other instance. 

        8.     
Severable Provisions.  Every provision of this Note is intended to
be severable. If any term or provision hereof is declared by a court of
competent jurisdiction to be illegal, invalid or unenforceable for any reason
whatsoever, such illegality, invalidity or unenforceability shall not affect the
balance of the terms and provisions hereof, which terms and provisions shall
remain binding and enforceable. 

        IN
WITNESS WHEREOF, the undersigned has executed this Note as of the date first
above written. 

	________________, 2001
Date of Note	BORROWER

_______________________________

Borrower's Signature

_______________________________

Borrower's Name (type or print)

11NuVox, Inc. Form 10-Q - Exhibit 10.3

Exhibit 10.3

NUVOX, INC.
2001 STOCK INCENTIVE PLAN

                                        
SECTION 1

                                                       Statement of Purpose

          1.1.  The  Nuvox,  Inc.  2001 Stock  Incentive  Plan (the  "Plan")  has been  established  by Nuvox,  Inc.,  a Delaware
corporation (the "Company"), to:

	 	        
              (a)    attract  and retain  executive,  managerial  and other  salaried  employees  through  the grant of stock
         options;

 	 	        
           (b)    motivate Participants, by means of appropriate incentives, to achieve long-range goals;

	 	        (c)
   provide incentive compensation opportunities that are competitive with those of
other telecommunications businesses through the grant of stock options; 

	 	        (d)
   further identify a Participant’s interests with those of the Company’s
stockholders through the grant of stock options; and thereby promote the
long-term financial interests of the Company, including the growth in value of
the Company’s equity and enhancement of long-term stockholder returns; and 

	 	        (e)
   permit Participants who are stockholders as of the Adoption Date of the Company
to acquire Units on virtually the same terms and conditions as non-Participant
stockholders participating in the Offering. 

                                                        SECTION 2

                                                       Definitions

        2.1.  Unless
the context indicates otherwise, the following terms shall have the meaning set
forth below: 

 	 	        
             (a)    Adoption  Date.  The term  "Adoption  Date" shall have the meaning  ascribed to it in Subsection  4.1 of
         the Plan.

	 	        
              (b)    Award.  The term "Award" shall mean an award to any Participant under the Plan of Options or Units.

	 	        
              (c)    Award  Agreement.  The term  "Award  Agreement"  shall  mean a  written  agreement  by which an Award is
         evidenced.

	 	        
              (d)    Board.  The term "Board" shall mean the Board of Directors of the Company.

	 	        
(e)   Cause. The term “Cause” shall mean (i) the willful and continued
failure by a Participant to substantially perform his or her duties with the
Employer (other than any such failure resulting from incapacity due to physical
or mental illness), or (ii) the willful engaging by the Participant in
conduct which is demonstrably and materially injurious to the Employer,
monetarily or otherwise. For purposes of this definition, no act, or failure to
act, shall be deemed “willful” unless done, or omitted to be done, by
the Participant not in good faith and without reasonable belief that his or her
action or omission was in the best interest of the Employer. 

	 	        
             (f)    Change in Control.  A "Change in Control" shall be deemed to have occurred if:

	 	        
(1)    any “person” as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)
(other than the Company, any subsidiary of the Company, or any trustee or other
fiduciary holding securities under an employee benefit plan of the Company or
any subsidiary of the Company), is or becomes the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
indirectly, of securities of the Company representing more than 50% of the
combined voting power of the Company’s then outstanding securities (other
than as a result of a merger or consolidation described in sub-clauses (3)(A)(i)
or (ii)) ; or 

	 	        
(2)   during any period of three consecutive years (not including any period prior to
the effective date of this Plan), individuals who at the beginning of such
period constitute the Board, and any new director (other than a director
designated by a person who has effected a transaction described in clause (1),
(3), (4) or (5) of this definition) whose election by the Board or nomination
for election by the Company’s stockholders was approved by a vote of at
least two-thirds (2/3) of the directors then still in office who either were
directors at the beginning of the period or whose election or nomination for
election was previously so approved, cease for any reason to constitute at least
a majority thereof; or 

	 	        
(3)   (A) the stockholders of the Company approve a merger or consolidation of the
Company with any other company other than (i) a merger or consolidation which
would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or its parent
corporation) more than 50% of the combined voting power of the voting securities
of the Company (or such surviving entity or its parent corporation) outstanding
immediately after such merger or consolidation, or (ii) a voting power of the
Company’s then outstanding securities, and (B) such merger or consolidation
is consummated; or 

1

	 	        
(4)   (A) the stockholders of the Company adopt a plan of complete liquidation of the
Company or approve an agreement for the sale or disposition by the Company of
all, or substantially all, of the Company’s stock or assets, and (B) such
liquidation or sale or disposition is consummated; or 

	 	        
(5)   
any other event determined by a vote of at least two-thirds (2/3) of the Board
to constitute a “Change in Control.” 

	 	        
(g)   Code. The term “Code” means the Internal Revenue Code of 1986, as
amended. A reference to any provision of the Code shall include a reference to
any successor provision of the Code. 

	 	        
              (h)    Committee.  The term "Committee"  means the  Compensation  Committee of the Board selected in accordance
         with the provisions of Subsection 4.2. 

 	 	        
             (i)    Common  Stock.  The term "Common  Stock" shall mean shares of common  stock,  $0.01 par value per share,
         of the Company.

	 	        
(j)   Continuous Service. The term “Continuous Service” shall mean that the
service of a Participant to an Employer as an employee or service provider is
not interrupted or terminated. The Board or the Committee may determine, in its
sole discretion, whether Continuous Service shall be considered interrupted in
the case of any leave of absence, including sick leave, military leave, or any
other personal leave. Continuous Service shall not be deemed to have terminated
merely because of a change in the capacity in which a Participant renders
service to the Employer. 

	 	        
(k)   
Date of Termination. A Participant’s “Date of Termination” shall
be the date on which his or her employment or other affiliation with all
Employers terminates for any reason; provided that a Date of Termination shall
not be deemed to occur by reason of a transfer of the Participant between the
Company and a Related Company or between two Related Companies; and provided
further that an Employee Participant’s employment shall not be considered
terminated while the Participant is on a leave of absence which is approved by
the Participant’s Employer. 

	 	        
(l)   Disability. Except as otherwise provided by the Committee, a Participant shall
be considered to have a “Disability” during the period in which he or
she is unable, by reason of a medically determinable physical or mental
impairment, to carry out his or her duties with an Employer, which condition, in
the discretion of the Committee, is expected to have a duration of not less than
120 days. 

	 	        
              (m)    Effective Date. The term "Effective  Date" shall have the meaning  ascribed to it in  Subsection 4.1  of
         the Plan.

	 	        
              (n)    Employee.  The term "Employee" shall mean a person with an employment relationship with an Employer.

	 	        
              (o)    Employer.  The term "Employer" shall mean the Company and each Related Company.

	 	        
(p)   Fair Market Value. The term “Fair Market Value” of the stock available
under the Plan on any given date shall be the mean the fair market value per
share of such stock, as reasonably determined in good faith by the Committee. On
any given date following an IPO, however, the term “Fair Market Value”
with respect to Common Stock shall mean the last sale price per share of Common
Stock, regular way, on such date or, in case no such sale takes place on such
date, the mean between the closing bid and asked prices per share of Common
Stock on such date, as reported in the principal quotation system applicable to
the Common Stock or, if on any such date the Common Stock is not so quoted, the
price per share of Common Stock reasonably determined in good faith by the
Committee. 

	 	        
(q)    Good Reason. The term “Good Reason” means (a) a material reduction in
compensation or in aggregate benefits without the Participant’s consent;
provided, that the Employer may at any time amend, modify, suspend or terminate
any bonus, incentive compensation or other benefit plan or program provided to
the Participant for any reason and without the Participant’s consent if
such modification, suspension or termination is consistently applied to all
similarly situated employees and does not violate the express terms of an
employment agreement or other arrangement with the Participant; (b) a material
reduction in the Participant’s title, status, authority or responsibility
at the Employer; or (c) the Participant has been notified that his or her
principal place of work will be relocated by a distance of fifty (50) miles or
more from his or her current principal place of work and the Participant has not
consented to the relocation. 

2

	 	        
              (r)    Grant Date.  The term "Grant Date" means the date any Award is granted by the Committee.

	 	        
(s)   Immediate Family. With respect to a particular Participant, the term
“Immediate Family” shall mean, whether through consanguinity or
adoptive relationships, the Participant’s spouse, children, stepchildren,
siblings and grandchildren. 

	 	        
(t)   Incentive Stock Option. The term “Incentive Stock Option” shall mean
an Option that is intended to satisfy the requirements applicable to an
“incentive stock option” described in Section 422(b) of the Code. 

	 	        
(u)   IPO. The term “IPO” shall mean the initial underwritten public
offering of Common Stock pursuant to a registration statement filed with and
declared effective by the SEC pursuant to the Securities Act of 1933, as
amended. 

	 	        
(v)   Non-Qualified Stock Option. The term “Non-qualified Stock Option”
shall mean an Option that is not intended to be an “incentive stock
option” as that term is described in Section 422(b) of the Code. 

	 	        

              (w)    Offering.  The term  "Offering"  shall  mean the  Company's  2001  offering  to its  stockholders  of an
         aggregate of up to 66,666,667 Units.

	 	        
(x)   Option. The term “Option” shall mean any Incentive Stock Option or
Non-Qualified Stock Option granted under the Plan. 

	 	        
(y)   Participant. The term “Participant” means any Employee, any
non-Employee director of the Company or any outside adviser or consultant
retained by any Employer who has been granted an Award under the Plan. 

	 	        
(zz)   Preferred Stock. The term “Preferred Stock” shall mean shares of preferred
stock, $0.01 par value per share, of the Company. 

	 	        
(aa)   Qualified Retirement Plan. The term “Qualified Retirement Plan” means any plan
of an Employer that is intended to be qualified under Section 401(a) of the
Code. 

	 	        
(bb)   Registration Rights Agreement. The term “Registration Rights Agreement” shall mean
that certain Restated Registration Rights Agreement dated as of March 31, 2000,
as amended and in effect from time-to-time, among the Company and the
stockholders (as described therein) of the Company. 

	 	        
(cc)   Related Company. The term “Related Company” means any company during any
period in which it is a “subsidiary corporation” of the Company (as
that term is defined in Code Section 424(f)). 

	 	        
(dd)   Retirement.
“Retirement” of a Participant shall mean the occurrence of a
Participant’s Date of Termination under circumstances that constitute such
Participant’s retirement at normal retirement age under the terms of the
Qualified Retirement Plan of the Company that is extended to the Participant
immediately prior to the Participant’s Date of Termination or, if no such
plan is extended to the Participant on his or her Date of Termination, under the
terms of any applicable retirement policy of the Participant’s Employer. 

	 	        
(ee)   Series B Preferred. The term “Series B Preferred” shall mean the
Series B Preferred Stock, $0.01 par value per share, of the Company. 

	 	        
(ff)    Series D Preferred. The term “Series D Preferred” shall mean the
Series D Convertible Preferred Stock, $0.01 par value per share, of the Company
to be issued in the Offering. 

	 	        
(gg)   Series D Warrant. The term “Series D Warrant” shall mean a five-year
warrant issued in the Offering, which will entitle the holder thereof to
purchase one share of Series D Preferred at an exercise price of $1.50 per
share. 

	 	        
(hh)   Series E Preferred. The term “Series E Preferred” shall mean the
Series E-1 through series E-18 convertible preferred stock, $0.01 par value per
share, of the Company to be issued on exercise of the Series E Warrants. 

	 	        
(ii)   
Series E Warrants. The term “Series E Warrants” shall mean warrants,
expiring March 31, 2002, to be issued in the Offering, which will entitle the
holder thereof to purchase shares of various Series E Preferred. 

	 	        
(jj)   
Series F Preferred. The term “Series F Preferred” shall mean shares of
Series F-1 Preferred and any additional series of Series F convertible preferred
stock, $0.01 par value per share, of the Company which may be authorized by the
Board from time to time for issuance under the Plan, provided that any such
additional series of Series F Preferred shall have substantially the same
preferences and relative, participating, optional and other special rights as
the Series F-1 Preferred, except that all of the provisions of the charter of
the Company which reflect the fact that the exercise price of the Series F-1
Preferred shall be equal to $0.59 per share shall be adjusted to reflect the
exercise price to be applicable to the Options to be granted for any such
additional series of Series F Preferred. Without limiting the generality of the
foregoing, (i) the equivalent of the Series F-1 Initial Amount (as defined in
the charter) applicable to any such additional series shall be adjusted to equal
the exercise price applicable to the Options to be granted for such additional
series and (ii) the provisions of the charter describing the conversion rights
applicable to any such additional series shall reflect the exercise price
applicable to the Options to be granted for such shares, instead of the exercise
price of $0.59 per share applicable to the Series F-1 Preferred. 

3

	 	        
(kk)   Series F-1 Preferred. The term “Series F-1 Preferred” shall mean the
Series F-1 convertible preferred stock, $0.01 par value per share, of the
Company. 

	 	        
(ll)   Shareholders Agreement. The term “Shareholders Agreement” shall mean that certain
Shareholders Agreement dated August 4, 1998, as amended November 18, 1998 and
December 13, 1999 ( and as further amended and in effect from time-to-time),
among the Company and the shareholders (as described therein) of the Company. 

	 	        
(mm)   Stockholders’ Agreement. The term “Stockholders’ Agreement”
shall mean that certain Amended and Restated Stockholders’ Agreement dated
as March 31, 2000, as amended and in effect from time-to-time, among the Company
and certain stockholders (as described therein) of the Company. 

	 	        
(nn)   Unit.
The term “Unit” shall mean the Units offered pursuant to Section 7 of
the Plan and in connection with the Offering, each consisting of one share of
Series D Preferred, a Series D Warrant and Series E Warrants. 

                                        
SECTION 3

                                                       Eligibility

        3.1.   
Subject to the discretion of the Committee, and the terms and conditions of the Plan,
the Committee shall determine and designate from time-to-time, from among the
Employees, the non-Employee directors of the Company and the outside advisers
and consultants of any Employer, Participants who will be granted one or more
Awards under the Plan, provided that only Employees may be granted Incentive
Stock Options and only Participants who are holders of Common Stock and/or
Preferred Stock as of the Adoption Date shall be eligible to purchase Units. 

        
SECTION 4

                                    Operation and Administration

        4.1.   
On August 8, 2001, the Board approved the material terms of the Plan and delegated
to the Committee the authority to formally approve and adopt the Plan. The Plan
was approved and adopted by the Committee as of August 23, 2001. (the
“Adoption Date”), and is effective on the date of commencement of the
Offering (the “Effective Date”). The Board, in its discretion, may
submit the Plan to stockholders for approval after the Adoption Date. Prior to
stockholder approval of the Plan, or in the event the Board opts not to seek
stockholder approval of the Plan, the Board may grant Options and Units
hereunder; provided, however, that no Option intended to qualify as an Incentive
Stock Option may be exercised prior to the time at which stockholders have
approved the Plan in accordance with applicable law, and in the event the
requisite stockholder approval of the Plan is not obtained within twelve (12)
months after the Adoption Date, all Options granted as Incentive Stock Options
shall be canceled without payment of consideration by the Company and no further
Incentive Stock Options shall be granted under the Plan. 

        
4.2.   The Plan shall remain in effect for ten (10) years following the Effective Date or,
if earlier, until termination by the Board; provided, however,
that no Incentive Stock Options may be granted under the Plan after ten (10)
years from the Adoption Date, or the date the Plan is approved by the
Company’s stockholders, whichever is earlier. 

        
4.3.   So long as the Company is eligible to exempt an Award from the potential treatment
as a parachute payment under Code Section 280G of the Code by securing
stockholder approval under Section 280G(b)(5)(A)(ii) of the Code, the Committee,
in its sole discretion, may condition the effectiveness of such Award upon
obtaining stockholder approval in accordance with the criteria set forth in
Section 280G(b)(5)(A)(ii) of the Code and the regulations promulgated
thereunder. 

        
4.4.   The Plan shall be administered by the Committee, which shall consist of not less
than two non-Employee members of the Board. Plenary authority to manage and
control the operation and administration of the Plan shall be vested in the
Committee, which authority shall include, without limitation, the following: 

	 	        
(a)   Subject to the provisions of the Plan, the Committee will have the authority and
discretion to select Employees to receive Awards, to determine the time or times
of receipt, to determine the types of Awards and the number of shares covered by
Awards, to establish the terms, conditions, performance criteria, restrictions,
and other provisions of Awards, and to cancel or suspend Awards. In making such
Award determinations, the Committee may take into account the nature of services
rendered by the respective Employee, his or her present and potential
contribution to the Company’s success and such other factors as the
Committee deems relevant. 

4

	 	        
                  (b)    The  Committee  will have the authority  and  discretion to interpret the Plan, to establish,  amend and
         rescind any rules and  regulations  relating to the Plan, to determine the terms and provisions of any agreements
         made  pursuant to the Plan,  and to make all other  determinations  that may be necessary  or  advisable  for the
         administration  of the Plan and to correct any defect or supply any omission or reconcile  any  inconsistency  in
         the Plan or in any Award in the manner and to the extent the Committee  deems  necessary or advisable to carry it
         into effect.

	 	        (c)
   Any interpretation of the Plan by the Committee and any decision made by it
under the Plan is final and binding on all persons. The express grant in the
Plan of any specific power to the Committee shall not be construed as limiting
any power or authority of the Committee. 

	 	        (d)
   The Committee may only act by a majority of its members. Any determination of
the Committee may be made without a meeting by the unanimous written consent of
its members. In addition, the Committee may authorize one or more of its members
or any officer of an Employer to execute and deliver documents and perform other
administrative acts pursuant to the Plan. 

	 	        (e)
   No member or authorized delegate of the Committee shall be liable to any person
for any action taken or omitted in connection with the administration of the
Plan unless attributable to his or her own fraud or gross misconduct. The
Committee, the individual members thereof, and persons acting as the authorized
delegates of the Committee under the Plan, shall be indemnified by the Company
against any and all liabilities, loses, costs and expenses (including legal fees
and expenses) of whatsoever kind and nature which may be imposed on, incurred by
or asserted against the Committee or its members or authorized delegates by
reason of the performance of a Committee function if the Committee or its
members or authorized delegates, as the case may be, did not act dishonestly or
in willful violation of the law or regulation under which such liability, loss,
cost or expense arises. This indemnification shall not duplicate but may
supplement any coverage available under any applicable insurance policy,
contract or by-law of any Employer. 

SECTION 5

                                    Shares and Warrants Available Under the Plan

         
5.1.   
The number of Series F-1 Preferred shares reserved for issuance under the Plan shall
be 24,000,000. 

        
5.2.   An additional 8,681,552 Series F Preferred shares shall be reserved under the Plan,
which may be issued in the form of Series F-1 shares in accordance with the
terms of the Plan or any other series of Series F Preferred shares authorized by
the Board from time to time pursuant to Subsection 6.4 of the Plan. 

        
5.3.   The number of Series D Preferred shares reserved for issuance under the Plan shall
be 3,787,516. 

        
5.4.   The number of Series D Warrants reserved for issuance under the Plan shall be
1,897,628. 

        
5.5.   The number of Series E Warrants reserved for issuance under the Plan shall be: 

	 	        
         (a)                2,408,568 warrants to purchase Series E-3 Convertible Preferred Stock;

	 	        
         (b)                9,970,513 warrants to purchase Series E-4 Convertible Preferred Stock;

	 	        
         (c)                591,302 warrants to purchase Series E-6 Convertible Preferred Stock;

	 	        
         (d)                2,115,000 warrants to purchase Series E-7 Convertible Preferred Stock;

	 	        

         (e)                913,307 warrants to purchase Series E-9 Convertible Preferred Stock;

	 	        
         (f)                4,634,879 warrants to purchase Series E-10 Convertible Preferred Stock;

	 	        
         (g)                11,060 warrants to purchase Series E-11 Convertible Preferred Stock; and

	 	        
         (h)                3,747,639 warrants to purchase Series E-12 Convertible Preferred Stock.

        5.6.   The number
of Series E Preferred shares reserved for issuance under the Plan with respect
to each series of Series E Preferred shall be: 

	 	        
         (a)                2,408,568 shares of Series E-3 Convertible Preferred Stock;

	 	        
         (b)                9,970,513 shares of Series E-4 Convertible Preferred Stock;

	 	        
         (c)                591,302 shares of Series E-6 Convertible Preferred Stock;

	 	        
         (d)                2,115,000 shares of Series E-7 Convertible Preferred Stock;

	 	        
         (e)                913,307 shares of Series E-9 Convertible Preferred Stock;

	 	        
         (f)                4,634,879 shares of Series E-10 Convertible Preferred Stock;

	 	        
         (g)                11,060 shares of Series E-11 Convertible Preferred Stock; and

	 	        
         (h)                3,747,639 shares of Series E-12 Convertible Preferred Stock.

5

         
5.7.   
The Board is also reserving 52,179,784 shares of Common Stock for issuance upon
conversion of the Series F Preferred, Series D Preferred and Series E Preferred. 

        
5.8.   Except as otherwise provided herein, any shares subject to an Award which for any
reason expires or is terminated without issuance of shares (whether or not cash
or other consideration is paid to a Participant in respect to such Award) shall
again be available for any purpose under the Plan. 

 SECTION 6

                                    Options

        
6.1.   The grant of an “Option” under this Section 6 entitles the Participant to
purchase shares of Series F Preferred at a price fixed at the time the Option is
granted, or at a price determined under a method established at the time the
Option is granted, subject to the terms of this Section 6. Options granted under
this Section 6 may be either Incentive Stock Options or Non-Qualified Stock
Options. 

        6.2.   
The Committee shall designate the Participants to whom Options are to be granted
under this Section 6 and shall determine the number of shares of Series F
Preferred to be subject to each such Option. To the extent that the aggregate
Fair Market Value of the Series F Preferred with respect to which Incentive
Stock Options are exercisable for the first time by any individual during any
calendar year (under all plans of the Employers) exceeds $100,000, such Options
shall be treated as Non-Qualified Stock Options, to the extent required by
Section 422 of the Code. 

        
6.3.   The determination and payment of the purchase price of a share of Series F Preferred
under each Option granted under this Section 6 shall be subject to the
following: 

	 	        
(a)    The purchase price for each Incentive Stock Option shall not be less than 100%
of the Fair Market Value of the Series F Preferred on the Grant Date (110% in
the case of an Incentive Stock Option granted to a Participant who directly or
indirectly owns more than 10% of the total combined voting power of all classes
of stock of the Company), and the purchase price established for each
Non-Qualified Stock Option shall not be less than 80% of the Fair Market Value
of the Series F Preferred on the Grant Date; 

	 	        
(b)    Subject to the following provisions of this Subsection 6.3, the full purchase
price of each share of Series F Preferred purchased upon the exercise of any
Option shall be paid at the time of such exercise and, as soon as practicable
thereafter, a certificate representing the shares so purchased shall be
delivered to the person entitled thereto; and 

	 	        
(c)   The purchase price shall be payable either in cash or shares of Common Stock or
Preferred Stock of the Company (valued at Fair Market Value as of the day of
exercise), through a combination of cash or shares of the Company or through
such cashless exercise arrangement as may be approved by the Committee and
established by the Company, provided that any shares used for payment shall have
been owned by the Participant for at least six (6) months. 

        
6.4.   Notwithstanding anything to the contrary herein, the Board, in accordance with its charter and
bylaws, may from time to time, and in its sole discretion as it deems
appropriate, authorize and issue additional series of Series F Preferred for
purchase pursuant to Options under the Plan. All such Options to purchase such
additional series of Series F Preferred shall be made in accordance with, and
subject to, the terms and provisions of the Plan. 

        
6.5.   Except as otherwise expressly provided in the Plan, the terms and conditions relating
to each Option shall be established by the Committee and set forth in an Award
Agreement. In no event shall an Option be for a term of more than ten (10) years
from its date of grant. 

        
6.6.   Each Option may be exercised during its term only to the extent it becomes
exercisable. Except for any acceleration pursuant to Subsection 6.7, an Option
shall become exercisable only as follows: 

	 	        
(a)   The first 12/36 of an Option shall become exercisable upon completion of one
year of Continuous Service by the Participant with an Employer from the date of
grant of such Option and an additional 1/36 of such Option shall become
exercisable upon the Participant’s completion of each full month of
Continuous Service with an Employer thereafter. 

	 	        
(b)   Upon the occurrence of a Change in Control prior to a Participant’s Date of
Termination, 50% of the then non-exercisable portion of any outstanding
Option(s) held by the Participant shall become exercisable; thereafter, the
remaining non-exercisable portion of any outstanding Options shall continue to
become exercisable pursuant to the schedule set forth in Subsection 6.6(a) or
the provisions of Subsection 6.7. 

6

        
6.7.   Subject to the terms of a Participant’s employment agreement in effect with the
Company as of the Date of Termination, the extent to which a Participant shall
have the right to exercise any outstanding Options following the Date of
Termination shall be determined in accordance with the following provisions: 

	 	        
(a)   If a Participant’s Date of Termination occurs prior to death and is on
account of (i) an involuntary termination by the Employer for Cause or (ii) a
voluntary termination by the Participant other than for Retirement, Disability
or Good Reason, the unexercised portion of all the Participant’s
outstanding Options as of the Date of Termination shall automatically be
forfeited upon such Date of Termination without payment of consideration by the
Company. 

	 	        
(b)   Notwithstanding the schedule set forth in Subsection 6.6(a), if a
Participant’s Date of Termination occurs within twelve (12) months from the
date of grant of the Option, and the Date of Termination is on account of (i)
death, (ii) voluntary termination by the Participant on account of Retirement or
Disability, (iii) involuntary termination by the Employer without Cause prior to
a Change in Control or (iv) voluntary termination by the Participant for Good
Reason prior to a Change in Control, 1/36 of the Option shall become exercisable
for each full month of Continuous Service with the Employer subsequent to the
date of grant of the Option and shall remain exercisable for such time as
provided below in Subsection 6.7(d). Otherwise, any portion of an Option, to the
extent it has not become exercisable as of the Date of Termination pursuant to
this Subsection 6.7(b) or Subsection 6.6, shall automatically be forfeited upon
such Date of Termination without payment of consideration by the Company. 

	 	        
(c)    If a Participant’s Date of Termination occurs within one (1) year
following a Change in Control and on account of an involuntary termination
by the Employer without Cause or voluntary termination by the Participant for
Good Reason, the remaining portion of any outstanding Options which have not
become exercisable pursuant to Subsection 6.6 shall immediately become
exercisable in full and remain exercisable for such time as provided below in
Subsection 6.7(d). 

	 	        
(d)   Except to the extent otherwise forfeited pursuant to this Subsection 6.7, any
portion of an Option which becomes exercisable pursuant to Subsection 6.6 or
Subsections 6.7(b) or 6.7(c) and which has not already expired as of or in
connection with the Date of Termination, shall remain exercisable until ten (10)
years from the date of grant of the Option or, if earlier: 

	 	        
(i)   if the Participant’s termination occurs on account of death, Disability, or
Retirement, one (1) year after the Date of Termination if the Option is a
Non-Qualified Stock Option and three (3) months if the Option is an Incentive
Stock Option; or 

	 	        
(ii)   if the Participant’s employment is involuntarily terminated by the Employer
without Cause or the Participant voluntarily terminates employment for Good
Reason, three (3) months after the Date of Termination. 

        
6.8.   Options which are, or become, exercisable at the time of a Participant’s death may
be exercised by the Participant’s designated beneficiary or, in the absence
of such designation, by the person to whom the Participant’s rights will
pass by will or the laws of descent and distribution. 

        
6.9.   Except to the extent the Committee shall otherwise determine, if, as a result of a sale
or other transaction (other than a Change in Control), a Participant’s
Employer ceases to be a Related Company (and the Participant’s Employer is
or becomes an entity that is separate from the Company), the occurrence of such
transaction shall be treated as the Participant’s Date of Termination
caused by the Participant’s employment being terminated by the
Participant’s Employer without Cause. 

        
6.10.   Notwithstanding the foregoing provisions of this Section 6, the Committee
may, with respect to any Options awarded to a Participant (or portion thereof)
that are outstanding immediately prior to the Participant’s Date of
Termination, determine that a Participant’s Date of Termination will not
result in forfeiture or other termination of such Options. 

        
6.11.   Options granted under the Plan are not transferable except by will or by the
laws of descent and distribution. To the extent that the Participant who
receives an Option under the Plan has the right to exercise such Option, the
Option may be exercised during the lifetime of the Participant only by the
Participant. Notwithstanding the foregoing provisions of this Subsection 6.11,
the Committee may permit Options under the Plan (other than Incentive Stock
Options) to be transferred by a Participant for no consideration to, or for the
benefit of, members of the Participant’s Immediate Family (including,
without limitation, to a trust for the benefit of members of a
Participant’s Immediate Family or to a family partnership for the benefit
of members of the Participant’s Immediate Family), subject to such limits
as the Committee may establish, provided that the transferee shall remain
subject to all of the terms and conditions applicable to such Options prior to
such transfer. 

7

        
6.12.   Notwithstanding any other provision to the contrary in this Plan, to the extent
that the acceleration of the exercisability of an Option, either alone or
together with other payments or rights accruing to the Participant from an
Employer, would constitute a “parachute payment” (as defined in
Section 280G of the Code and regulations thereunder), such acceleration of the
Option pursuant to this Article 6 shall be reduced by such amount as is
necessary so the Participant will not be subject to an excise tax under Code
Section 4999; provided, however, that the foregoing limitation
shall not apply to the extent the Participant’s employment agreement in
effect on the date of such acceleration provides for an alternate treatment of
payments or rights with respect to the treatment of payments or rights that
would constitute “parachute payments” under Code Section 280G. 

 SECTION 7

                                    Units

        
7.1.   During the Offering, Participants holding shares of Common Stock and/or Preferred Stock
of the Company shall be eligible to purchase Units for up to a maximum of 100%
of the Participant’s pro rata share of the Offering, based on the
Participant’s holdings in the Company (125% based on any investment which
the Participant may have had in Series B Preferred). Each Unit consists of one
share of Series D Preferred, a Series D Warrant and additional Series E
Warrants, as described below. The purchase price is $1.50 per Unit. 

        
7.2.   Each eligible Participant shall receive an Award Agreement setting forth his or her
pro rata share of the Offering and the number of Units which he or she may
purchase. Units may be purchased by the Participant only by completing and
submitting to the Company his or her Award Agreement prior to the deadline set
forth therein. The Committee may require, in its sole discretion, that a
Participant execute additional documents prior to receiving Units pursuant to
the Plan. 

           
7.3.   Payment for Units  purchased  pursuant to the Plan may only be made: (a) in cash,  (b) by certified  check or (c)
pursuant to any loan program which the Committee, in its sole discretion, may establish.

        7.4.   Upon receipt and approval by the Company of the completed Award Agreement, and upon
execution by the Participant of any additional documents which may be required
by the Committee, the Company shall issue as soon as reasonably practicable
thereafter duly issued stock certificates representing the number of shares of
Series D Preferred the Participant is entitled to receive pursuant to the
purchase of the Units and warrant certificates in respect of the Series D
Warrants and Series E Warrants the Participant is entitled to receive pursuant
to the purchase of the Units. 

        7.5.   Shares of Series D Preferred, Series D Warrants and Series E Warrants received pursuant
to the purchase of Units under the Plan shall not be subject to any risk of
forfeiture, vesting schedule or other restrictions, except as otherwise provided
herein or in the applicable stock certificates or warrant certificates, and
except that shares of Series D Preferred received pursuant to the purchase of
Units, and shares of Series D Preferred and Series E Preferred received pursuant
to the exercise of Series D Warrants and Series E Warrants, shall be subject to
the Stockholders’ Agreement, Registration Rights Agreement and Shareholders
Agreement by virtue of accession as an existing stockholder of the Company. 

        
7.6.   Each Unit includes a five-year Series D Warrant to purchase one share of Series D
Preferred at an exercise price of $1.50 per share. In addition, a Participant
who does not participate in a loan program and who purchases more than his or
her pro rata share of the Offering (or more than 125% of his or her pro rata
share based on investments in Series B Preferred) will receive one additional
five-year Series D Warrant, at an exercise price of $0.01 per share, for each
Unit purchased in excess of such pro rata share. In order to exercise the $0.01
Series D Warrants, the holder must also exercise an equal number of $1.50 Series
D Warrants. Pursuant to the terms and provisions set forth in the applicable
Series D Warrant certificate, the exercise price of the Series D Warrants may be
paid either in cash and/or by delivery of shares of Common Stock or Preferred
Stock which have been owned by the Participant for at least six (6) months and
having a fair market value on the date of exercise equal to the exercise price,
or by net issue exercise (as described in the applicable Series D Warrant
certificate). 

        
7.7.   Each Unit also includes Series E Warrants, expiring March 31, 2002, to acquire a
number of shares of the various series of Series E Preferred at $1.00 per share
($1.75 per share for Participants holding Series B Preferred who subscribe for
less than 125% of their pro rata portion of the Offering based on their
investment in Series B Preferred). The individual series of Series E Preferred
for which Series E Warrants shall be exercisable (i.e., Series E-3, E-4, E-5,
etc.) shall be determined by the Common Stock or Preferred Stock in respect of
which the Series E Warrants are issued. The number of shares of Series E
Preferred for which the Series E Warrants will be exercisable will be determined
by dividing the percentage amount of the Participant’s invested capital (up
to 100%) equal to the percentage of the Participant’s pro rata share of the
Offering that is purchased (up to 100% or 125% based on a Participant’s
investment in Series B Preferred) by $1.00, except that the number of Series E
Warrants issued in respect of Common Stock investments at less than $1.00 per
share will be equal to the number of shares of such Common Stock purchased at
that price. The Series E Warrants will be allocated among the various series of
Series E Preferred based upon the shares of Common Stock and Preferred Stock
currently owned by the Participant and the purchase price paid by the
Participant for such shares of Common Stock and Preferred Stock. Pursuant to the
terms and provisions set forth in the applicable Series E Warrant certificate,
the exercise price of the Series E Warrants may be paid either in cash and/or by
delivery of shares of Common Stock or Series A, A-1, B, C-1, C-2 or C-3
Preferred Stock which the Participant has owned for at least six (6) months. For
the purpose of the payment of the exercise price of the Series E Warrants, such
shares of Common Stock or Preferred Stock will be valued at the amount invested
in such shares (or $1.00 per share for shares of Common Stock acquired for less
than $1.00 per share), as described in the applicable Series E Warrant
certificate. 

8

        
7.8.   Both Series D Preferred and Series E Preferred will have a liquidation preference as
follows: 

	 	        
(a)   Participants holding Series D Preferred, along with other holders of Series D
Preferred, will be entitled to receive, prior to and in preference to any
distribution to holders of any other series of Preferred Stock or Common Stock,
a liquidation preference for each share in an amount equal to $3.00 per share,
plus a preferred return on the $1.50 purchase price per Unit of 8% per annum
from the original issue date of such Series D Preferred, or, if greater, the
amount such holders would have received if their shares had been converted into
shares of Common Stock immediately prior to the liquidation, dissolution or
winding up of the Company. Any acquisition of the Company by means of a merger
or any sale or other disposition of all, or substantially all, of the assets or
outstanding stock of the Company shall be treated as a liquidation, dissolution
or winding up of the Company for this purpose. 

	 	        
(b)   The shares of Series E Preferred received pursuant to the exercise of Series E
Warrants will have an aggregate initial liquidation preference equal to the
greater of (i) (x) the aggregate investment made in the shares of Common Stock
or Preferred Stock of the Participant in respect of which the Series E Warrants
were issued plus any accrued preferred return applicable to such Preferred
Stock, plus (y) a preferred return on such investment of 8% per annum, or (ii)
the amount such holders would have received if their shares had been converted
into shares of Common Stock immediately prior to the liquidation, dissolution or
winding up of the Company. Such 8% return shall accrue from the date of issuance
of the Series E Warrants. 

        
7.9.   Each share of Series D Preferred and Series E Preferred will be convertible into one
share of Common Stock, subject to adjustment. Upon any issuance or sale of
shares of Common Stock or any securities convertible into or exchangeable for
shares of Common Stock without consideration or for a consideration per share of
less than the then-existing conversion price of the Series D Preferred, subject
to certain exceptions, the conversion price of Series D Preferred will be
adjusted so that it is not greater than the lowest consideration per share
received or to be received by the Company in such issuance or conversion. The
Series E Preferred will be entitled to conversion adjustments under the same
weighted average adjustment formula that is applicable to the existing series of
Preferred Stock. The “full ratchet” formula applicable to the Series D
Preferred will provide a more favorable adjustment for holders of Series D
Preferred than that which is provided under the weighted average adjustment
formula. The weighted average and “full ratchet” conversion price
adjustments apply in respect of any issuance or sale by the Company of shares of
Common Stock or any security convertible into or exchangeable for shares of
Common Stock without consideration or for a consideration per share of less than
any of the then existing conversion prices, except for issuances: 

                  	 	        
upon conversion of Series A, A-1, B, C-1, C-2, C-3, D, E-1 through E-13 and F preferred stock;

	 	        
upon issuance or exercise of the Company's $1.81,  $2.03,  $3.00, $6.00 and $10.25 common stock warrants
         or the Series D Warrants or Series E warrants;

	 	        
 to officers,  directors,  employees,  consultants or advisors pursuant to stock option or stock purchase
         plans, warrants or agreements from time to time approved by the Board;

	 	        
as a dividend or  distribution  on shares of Series A, A-1, B, C-1,  C-2, C-3, D, E-1 through E-13 and F
         preferred stock; and

	 	        
                 in connection with Board-approved acquisitions.

        Each
share of Preferred Stock will automatically be converted into shares of Common
Stock at the then-effective conversion price upon the closing of the sale of
Common Stock in a firm commitment, underwritten public offering registered under
the Securities Act of 1933, as amended, subject to exceptions for certain types
of registrations, at a public offering price equal to or exceeding $1.00 per
share of Common Stock (as adjusted for any stock dividends, combinations or
splits with respect to the Common Stock), and in which the aggregate proceeds to
the Company and/or any selling stockholders are at least $50,000,000. If the
public offering price in such offering is less than $3.00 per share, the number
of shares of Common Stock to be issued on the conversion of the shares of Series
D Preferred will be increased by multiplying the number of shares that would
otherwise be issued by a fraction, the numerator of which is $3.00 and the
denominator of which is such public offering price per share. 

9

        
7.10.   No dividends will be payable on the Series D Preferred or Series E Preferred,
and such shares will not be redeemable, either at the option of the Participant
or at the option of the Company. 

        
7.11.   A Participant may purchase more than his or her pro rata share of Units. Any
Participant who purchases more than his or her pro rata share, or more than 125%
of his or her pro rata share for a holder of Series B Preferred, shall receive
one additional Series D Warrant for each Unit purchased in excess of such pro
rata share. 

 SECTION 8

                                    Adjustments to Awards

        
8.1.   If the Company shall effect a reorganization, merger, consolidation or similar
event, or effect any subdivision or consolidation of shares of Common Stock,
Series D Preferred, Series E Preferred or Series F Preferred, or other capital
readjustment, payment of stock dividend, stock split, spin-off, combination of
shares or recapitalization or other increase or reduction of the number of
shares of Common Stock, Series D Preferred, Series E Preferred or Series F
Preferred outstanding without receiving compensation therefor in money, services
or property, then the Committee, as it deems appropriate in its sole discretion,
shall adjust (i) the number of shares of Series F Preferred available under the
Plan, (ii) the number of shares of Series F Preferred subject to then
outstanding Options or (iii) the per-share price under any outstanding Options.
All share adjustments shall be made to the nearest full share. Adjustments with
respect to any then outstanding Series D Warrants and Series E Warrants shall be
made in accordance with the terms of the applicable warrant certificates. 

        
8.2.   If the Committee determines that an adjustment in accordance with the foregoing
provisions of Subsection 8.1 would not be fully consistent with the
purposes of the Plan or the purposes of the outstanding Awards under the Plan,
the Committee may make such other adjustment to the Awards, if any, that the
Committee determines is equitable and consistent with the purposes of the Plan
and/or the affected Awards. 

 SECTION 9

                                    No Right to Continued Employment or Affiliation

        
9.1.   Participation in the Plan shall confer no rights to continued employment or affiliation with
an Employer, nor shall it restrict the right of an Employer to terminate a
Participant’s employment or affiliation with such Employer at any time. 

 SECTION 10

                                    Tax Withholding

        
10.1.   All Awards and other payments under the Plan are subject to the withholding of
all applicable taxes which are legally required to be withheld, which
withholding obligations shall be satisfied (without regard to whether the
Participant has transferred an Award under the Plan) by a cash remittance, the
withholding from any cash or stock remuneration then or thereafter payable, or
with the consent of the Committee, through the surrender of shares of Common
Stock and/or Preferred Stock of the Company which the Participant owns or to
which the Participant is otherwise entitled under the Plan pursuant to an
irrevocable election submitted by the Participant to the Company. Except as
otherwise provided herein or in the applicable Award Agreement (or, in the case
of Series D Warrants and Series E Warrants, the applicable warrant certificate),
the number of shares needed to be submitted in payment of the taxes shall be
determined using the Fair Market Value of the shares being tendered as of the
applicable tax date rounding down to the nearest whole share; provided that no
election to have shares withheld from an Award or submission of shares of stock
shall be effective with respect to an Award which was transferred by a
Participant in accordance with the Plan. 

 SECTION 11

                                    Termination and Amendment

        
11.1.   The Board may suspend, terminate, modify or amend the Plan, provided that no
suspension, termination, modification or amendment of the Plan may terminate a
Participant’s existing Award or materially and adversely affect a
Participant’s rights under such Award without the Participant’s
consent. 

10

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