Document:

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                                                                     EXHIBIT 4.5

                                                                  Execution Copy

                          Madison River Capital, LLC
                          Madison River Finance Corp.

                         13 1/4% Senior Notes due 2010

                  Exchange and Registration Rights Agreement
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                                                       February 17, 2000
Goldman, Sachs & Co.,
Chase Securities Inc.
Morgan Stanley & Co. Incorporated
Bear, Stearns & Co. Inc.
 As representatives of the several Purchasers
 named in Schedule I to the Purchase Agreement
c/o Goldman, Sachs & Co.
85 Broad Street
New York, New York 10004

Ladies and Gentlemen:

     Madison River Capital, LLC, a Delaware limited liability company (the
"Company"), and Madison River Finance Corp., a Delaware corporation ("Madison
River Finance" and, together with the Company, the "Issuers") propose to issue
and sell to the Purchasers (as defined herein) upon the terms set forth in the
Purchase Agreement (as defined herein) their 13 1/4% Senior Notes due 2010.  As
an inducement to the Purchasers to enter into the Purchase Agreement and in
satisfaction of a condition to the obligations of the Purchasers thereunder, the
Issuers agree with the Purchasers for the benefit of holders (as defined herein)
from time to time of the Registrable Securities (as defined herein) as follows:

     1.   Certain Definitions. For purposes of this Exchange and Registration
Rights Agreement, the following terms shall have the following respective
meanings:

     "Base Interest" shall mean the interest that would otherwise accrue on the
  Securities under the terms thereof and the Indenture, without giving effect to
  the provisions of this Agreement.

     The term "broker-dealer" shall mean any broker or dealer registered with
  the Commission under the Exchange Act.

     "Closing Date" shall mean the date on which the Securities are initially
  issued.

     "Commission" shall mean the United States Securities and Exchange
  Commission, or any other federal agency at the time administering the Exchange
  Act or the Securities Act, whichever is the relevant statute for the
  particular purpose.

     "Conduct Rules" shall have the meaning assigned thereto in Section
  3(d)(xix) hereof.
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     "Effective Time," in the case of (i) an Exchange Registration, shall mean
  the time and date as of which the Commission declares the Exchange
  Registration Statement effective or as of which the Exchange Registration
  Statement otherwise becomes effective; (ii) a Shelf Registration, shall mean
  the time and date as of which the Commission declares the Shelf Registration
  Statement effective or as of which the Shelf Registration Statement otherwise
  becomes effective; and (iii) a Market Making Shelf Registration, shall mean
  the time and date as of which the Commission declares the Market Making Shelf
  Registration Statement effective or as of which the Market Making Shelf
  Registration Statement otherwise becomes effective.

     "Electing Holder" shall mean any holder of Registrable Securities that has
  returned a completed and signed Notice and Questionnaire to the Issuers in
  accordance with Section 3(d)(ii) or 3(d)(iii) hereof.

     "Exchange Act" shall mean the Securities Exchange Act of 1934, or any
  successor thereto, as the same shall be amended from time to time.

     "Exchange Offer" shall have the meaning assigned thereto in Section 2(a)
  hereof.

     "Exchange Registration" shall have the meaning assigned thereto in Section
  3(c) hereof.

     "Exchange Registration Statement" shall have the meaning assigned thereto
  in Section 2(a) hereof.

     "Exchange Securities" shall have the meaning assigned thereto in Section
  2(a) hereof and is also referred to as the New Notes in the Indenture.

     The term "holder" shall mean each of the Purchasers and other persons who
  acquire Registrable Securities from time to time (including any successors or
  assigns), in each case for so long as such person owns any Registrable
  Securities.

     "Indenture" shall mean the Indenture, dated as of February 17, 2000,
  between the Issuers and Norwest Bank Minnesota, National Association, as
  Trustee, as the same shall be amended from time to time.

     "Market Making Shelf Registration" shall have the meaning assigned thereto
  in Section 2(c) hereof.

     "Market Making Shelf Registration Statement" shall have the meaning
  assigned thereto in Section 2(c) hereof.

     "NASD" shall have the meaning assigned thereto in Section 3(d)(xix) hereof.

     "Notice and Questionnaire" means a Notice of Registration Statement and
  Selling Securityholder Questionnaire substantially in the form of Exhibit A
  hereto.

     The term "person" shall mean a corporation, association, partnership,
  organization, business, individual, government or political subdivision
  thereof or governmental agency.

     "Purchase Agreement" shall mean the Purchase Agreement, dated as of
  February 14, 2000, between the Purchasers and the Issuers relating to the
  Securities.

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     "Purchasers" shall mean the Purchasers named in Schedule I to the Purchase
  Agreement.

     "Registrable Securities" shall mean the Securities; provided, however, that
  a Security shall cease to be a Registrable Security when (i) in the
  circumstances contemplated by Section 2(a) hereof, the Security has been
  exchanged for an Exchange Security in an Exchange Offer as contemplated in
  Section 2(a) hereof (provided that any Exchange Security that, pursuant to the
  last two sentences of Section 2(a), is included in a prospectus for use in
  connection with resales by broker-dealers shall be deemed to be a Registrable
  Security with respect to Sections 5, 6 and 9 until resale of such Registrable
  Security has been effected within the 180-day period referred to in Section
  2(a)); (ii) in the circumstances contemplated by Section 2(b) hereof, a Shelf
  Registration Statement registering such Security under the Securities Act has
  been declared or becomes effective and such Security has been sold or
  otherwise transferred by the holder thereof pursuant to and in a manner
  contemplated by such effective Shelf Registration Statement; (iii) such
  Security is sold pursuant to Rule 144 under circumstances in which any legend
  borne by such Security relating to restrictions on transferability thereof,
  under the Securities Act or otherwise, is removed by the Issuers or pursuant
  to the Indenture; (iv) such Security is eligible to be sold pursuant to
  paragraph (k) of Rule 144; or (v) such Security shall cease to be outstanding.

     "Registration Default" shall have the meaning assigned thereto in Section
  2(d) hereof.

     "Registration Default Period" shall have the meaning assigned thereto in
  Section 2(d) hereof.

     "Registration Expenses" shall have the meaning assigned thereto in Section
  4 hereof.

     "Resale Period" shall have the meaning assigned thereto in Section 2(a)
  hereof.

     "Restricted Holder" shall mean (i) a holder that is an affiliate of the
  Issuers within the meaning of Rule 405, (ii) a holder who acquires Exchange
  Securities outside the ordinary course of such holder's business, (iii) a
  holder who has arrangements or understandings with any person to participate
  in the Exchange Offer for the purpose of distributing Exchange Securities and
  (iv) a holder that is a broker-dealer, but only with respect to Exchange
  Securities received by such broker-dealer pursuant to an Exchange Offer in
  exchange for Registrable Securities acquired by the broker-dealer directly
  from the Issuers.

     "Rule 144," "Rule 405" and "Rule 415" shall mean, in each case, such rule
  promulgated under the Securities Act (or any successor provision), as the same
  shall be amended from time to time.

     The term "Secondary Offer Registration Statement" shall mean (i) the Shelf
  Registration Statement required to be filed by the Company pursuant to Section
  2(b) hereof and/or (ii) the Market Making Shelf Registration Statement
  required to be filed by the Company pursuant to Section 2(c) hereof, in each
  case, as applicable.  As used herein, references to a Secondary Offer
  Registration Statement in the singular shall, if applicable, be deemed to be
  in the plural.

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     "Securities" shall mean, collectively, the 13 1/4% Senior Notes due 2010
  of the Issuers to be issued and sold to the Purchasers, and securities issued
  in exchange therefor or in lieu thereof pursuant to the Indenture.

     "Securities Act" shall mean the Securities Act of 1933, or any successor
  thereto, as the same shall be amended from time to time.

     "Shelf Registration" shall have the meaning assigned thereto in Section
  2(b) hereof.

     "Shelf Registration Statement" shall have the meaning assigned thereto in
  Section 2(b) hereof.

     "Special Interest" shall have the meaning assigned thereto in Section 2(d)
  hereof.

     "Trust Indenture Act" shall mean the Trust Indenture Act of 1939, or any
  successor thereto, and the rules, regulations and forms promulgated
  thereunder, all as the same shall be amended from time to time.

          Unless the context otherwise requires, any reference herein to a
"Section" or "clause" refers to a Section or clause, as the case may be, of this
Exchange and Registration Rights Agreement, and the words "herein," "hereof" and
"hereunder" and other words of similar import refer to this Exchange and
Registration Rights Agreement as a whole and not to any particular Section or
other subdivision.

          2.   Registration Under the Securities Act.

     (a)  Except as set forth in Section 2(b) below, the Issuers agree to file
under the Securities Act, as soon as practicable, but no later than 90 days
after the Closing Date, a registration statement relating to an offer to
exchange (such registration statement, the "Exchange Registration Statement",
and such offer, the "Exchange Offer") any and all of the Securities for a like
aggregate principal amount of debt securities issued by the Issuers, which debt
securities are substantially identical to the Securities (and are entitled to
the benefits of a trust indenture which is substantially identical to the
Indenture or is the Indenture and which has been qualified under the Trust
Indenture Act), except that they have been registered pursuant to an effective
registration statement under the Securities Act and do not contain provisions
for the additional interest contemplated in Section 2(d) below (such new debt
securities hereinafter called "Exchange Securities"). The Issuers agree to use
their best efforts to cause the Exchange Registration Statement to become
effective under the Securities Act as soon as practicable, but no later than 180
days after the Closing Date. The Exchange Offer will be registered under the
Securities Act on the appropriate form and will comply with all applicable
tender offer rules and regulations under the Exchange Act. The Issuers further
agree to use their best efforts to commence and complete the Exchange Offer
promptly, but no later than 45 days after such registration statement has become
effective, hold the Exchange Offer open for at least 30 days and exchange
Exchange Securities for all Registrable Securities that have been properly
tendered and not withdrawn on or prior to the expiration of the Exchange Offer.
The Exchange Offer will be deemed to have been "completed" only if the debt
securities received by holders other than Restricted Holders in the Exchange
Offer for Registrable Securities are, upon receipt, transferable by each such
holder without restriction under Section 5 of the Securities Act and the
Exchange Act (except for the requirement to deliver a prospectus included in the

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Exchange Registration Statement applicable to resales by any broker-dealer of
Exchange Securities received by such broker-dealer pursuant to an Exchange Offer
in exchange for Registrable Securities other than those acquired by the broker-
dealer directly from the Issuers) and without material restrictions under the
blue sky or securities laws of a substantial majority of the States of the
United States of America. The Exchange Offer shall be deemed to have been
completed upon the earlier to occur of (i) the Issuers having exchanged the
Exchange Securities for all outstanding Registrable Securities pursuant to the
Exchange Offer and (ii) the Issuers having exchanged, pursuant to the Exchange
Offer, Exchange Securities for all Registrable Securities that have been
properly tendered and not withdrawn before the expiration of the Exchange Offer,
which shall be on a date that is at least 30 days following the commencement of
the Exchange Offer. The Issuers agree (x) to include in the Exchange
Registration Statement a prospectus for use in any resales by any holder of
Exchange Securities that is a broker-dealer and (y) to keep such Exchange
Registration Statement effective for a period (the "Resale Period") beginning
when Exchange Securities are first issued in the Exchange Offer and ending upon
the earlier of the expiration of the 180th day after the Exchange Offer has been
completed or such time as such broker-dealers no longer own any Registrable
Securities. With respect to such Exchange Registration Statement, such holders
shall have the benefit of the rights of indemnification and contribution set
forth in Sections 6(a), (c), (d) and (e) hereof.

     (b)  If (i) the Issuers are not (a) required to file the Exchange Offer
Registration Statement or (b) permitted to consummate the Exchange Offer because
the Exchange Offer is not permitted by applicable law or Commission policy, (ii)
any Holder of Transfer Restricted Securities notifies the Issuers prior to the
20/th/ day following consummation of the Exchange Offer that (a) it is
prohibited by law or Commission policy from participating in the Exchange Offer,
(b) that it may not resell the Exchange Securities acquired by it in the
Exchange Offer to the public without delivering a prospectus and the prospectus
contained in the Exchange Offer Registration Statement is not appropriate or
available for such resales or (c) that it is a broker-dealer and owns Securities
acquired directly from the Issuers or an affiliate of the Issuers, the Issuers
shall, in lieu of (or, in the case of clause (ii), in addition to) conducting
the Exchange Offer contemplated by Section 2(a), use all reasonable best efforts
to file under the Securities Act as soon as practicable, but no later than the
later of 30 days after the time such obligation to file arises, a "shelf"
registration statement providing for the registration of, and the sale on a
continuous or delayed basis by the holders of, all of the Registrable
Securities, pursuant to Rule 415 or any similar rule that may be adopted by the
Commission (such filing, the "Shelf Registration" and such registration
statement, the "Shelf Registration Statement"). The Issuers agree to use their
best efforts (x) to cause the Shelf Registration Statement to become or be
declared effective no later than 90 days after such Shelf Registration Statement
is filed and to keep such Shelf Registration Statement continuously effective
for a period ending on the earlier of the second anniversary of the Effective
Time or such time as there are no longer any Registrable Securities outstanding,
provided, however, that no holder shall be entitled to be named as a selling
securityholder in the Shelf Registration Statement or to use the prospectus
forming a part thereof for resales of Registrable Securities unless such holder
is an Electing Holder, and (y) after the Effective Time of the Shelf
Registration Statement, promptly upon the request of any holder of Registrable
Securities that is not then an Electing Holder, to take any action reasonably
necessary to enable such holder to use the prospectus forming a part thereof for
resales of Registrable Securities, including, without limitation, any action
necessary to identify such holder as a selling securityholder in the Shelf
Registration Statement, provided, however,8

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that nothing in this Clause (y) shall relieve any such holder of the obligation
to return a completed and signed Notice and Questionnaire to the Issuers in
accordance with Section 3(d)(iii) hereof. The Issuers further agree to
supplement or make amendments to the Shelf Registration Statement, as and when
required by the rules, regulations or instructions applicable to the
registration form used by the Issuers for such Shelf Registration Statement or
by the Securities Act or rules and regulations thereunder for shelf
registration, and the Issuers agree to furnish to each Electing Holder copies of
any such supplement or amendment prior to its being used or promptly following
its filing with the Commission.

     (c)  The Issuers shall file under the Securities Act, as soon as
practicable after the date on which the Exchange Registration Statement (or in
lieu thereof, the Shelf Registration Statement) is filed with the Commission, a
"shelf" registration statement (which may be the Exchange Registration Statement
or the Shelf Registration Statement if permitted by the rules and regulations of
the Commission) pursuant to Rule 415 under the Securities Act or any similar
rule that may be adopted by the Commission providing for the registration of,
and the sale on a continuous or delayed basis in secondary transactions by
Goldman, Sachs & Co. of, Securities (in the event of a Shelf Registration) or
Exchange Securities (in the event of an Exchange Offer) (such filing, the
"Market Making Shelf Registration", and such registration statement, the "Market
Making Shelf Registration Statement"). The Issuers agree to use their reasonable
best efforts to cause the Market Making Shelf Registration Statement to become
or be declared effective on or prior to (i) the date the Exchange Offer is
completed pursuant to Section 2(a) above or (ii) the date the Shelf Registration
becomes or is declared effective pursuant to Section 2(b) above, and to keep
such Market Making Shelf Registration Statement continuously effective for so
long as Goldman, Sachs & Co. may be required to deliver a prospectus in
connection with transactions in the Securities or the Exchange Securities, as
the case may be. In the event that Goldman, Sachs & Co. holds Securities at the
time an Exchange Offer is to be conducted under Section 2(a) above, the Issuers
agree that the Market Making Shelf Registration shall provide for the resale by
Goldman, Sachs & Co. of such Securities and shall be kept continuously effective
for so long as Goldman, Sachs & Co. may be required to deliver a prospectus in
connection with the sale of such Securities. The Issuers further agree to
supplement or make amendments to the Market Making Shelf Registration Statement,
as and when required by the rules, regulations or instructions applicable to the
registration form used by the Issuers for such Market Making Shelf Registration
Statement or by the Securities Act or rules and regulations thereunder for shelf
registration, and the Issuers agree to furnish to Goldman, Sachs & Co. copies of
any such supplement or amendment prior to its being used or promptly following
its filing with the Commission.

Notwithstanding the foregoing, the Issuers may suspend the offering and sale
under the Market Making Shelf Registration Statement for a period or periods the
Board of Managers of the Company reasonably determines to be necessary, but in
any event not to exceed 150 days in each year during which the Market Making
Shelf Registration Statement is required to be effective and usable hereunder
(measured from the Effective Time of the Market Making Shelf Registration
Statement to successive anniversaries thereof) if (A)(i) the Issuers are in
possession of material nonpublic information relating to a proposed financing,
recapitalization, acquisition, disposition, business combination or other
material transaction and (ii)(x) such transaction is required to be disclosed in
the Market Making Shelf Registration Statement, the related prospectus or any
amendment or supplement thereto, or the failure by the Issuers to disclose such
transaction in the Market Making Shelf

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Registration Statement or related prospectus, or any amendment or supplement
thereto, as then amended or supplemented, would cause the Market Making Shelf
Registration Statement, prospectus or amendment or supplement thereto, to
contain an untrue statement of material fact or omit to state a material fact
necessary in order to make the statement therein, in the light of the
circumstances under which they were made, not misleading, (y) information
regarding the existence of such transaction has not then been publicly disclosed
by or on behalf of the Issuers and (z) the Board of Managers of the Company
determines in good faith that disclosure of such transaction would not be in the
best interest of the Issuers or would have a material adverse effect on the
consummation of such transaction, and (B) the Issuers notify Goldman, Sachs &
Co. within five days after such Board of Managers makes the relevant
determination set forth in clause (A).

     (d)  In the event that (i) the Issuers have not filed the Exchange
Registration Statement or the Shelf Registration Statement on or before the date
on which such registration statement is required to be filed pursuant to Section
2(a), 2(b) or 2(c) hereof, or (ii) such Exchange Registration Statement, Shelf
Registration Statement or Market Making Shelf Registration Statement has not
become effective or been declared effective by the Commission on or before the
date on which such registration statement is required to become or be declared
effective pursuant to Section 2(a), 2(b) or 2(c) hereof, respectively, or (iii)
the Exchange Offer has not been completed within 45 days after the initial
effective date of the Exchange Registration Statement relating to the Exchange
Offer (if the Exchange Offer is then required to be made) or (iv) any Exchange
Registration Statement or Shelf Registration Statement required by Section 2(a)
or 2(b) hereof is filed and declared effective but shall thereafter either be
withdrawn by the Issuers or shall become subject to an effective stop order
issued pursuant to Section 8(d) of the Securities Act suspending the
effectiveness of such registration statement (except as specifically permitted
herein) without being succeeded immediately by an additional registration
statement filed and declared effective (each such event referred to in clauses
(i) through (iv), a "Registration Default" and each period during which a
Registration Default has occurred and is continuing, a "Registration Default
Period"), then, as liquidated damages for such Registration Default, subject to
the provisions of Section 9(b), special interest ("Special Interest"), in
addition to the Base Interest, shall accrue in an amount equal to $0.05 per week
per $1,000 principal amount of the Securities held by such holder with respect
to the first 90-day period, increasing by an additional $0.05 per week per
$1,000 principal amount of Securities with respect to each subsequent 90-day
period up to a maximum amount of $0.50 per week per $1,000 principal amount of
Securities.

     (e)  The Issuers shall take all actions necessary or advisable to be taken
by it to ensure that the transactions contemplated herein are effected as so
contemplated.

     (f)  Any reference herein to a registration statement as of any time shall
be deemed to include any document incorporated, or deemed to be incorporated,
therein by reference as of such time and any reference herein to any post-
effective amendment to a registration statement as of any time shall be deemed
to include any document incorporated, or deemed to be incorporated, therein by
reference as of such time.

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     3.  Registration Procedures.

     If the Issuers file a registration statement pursuant to Section 2(a),
Section 2(b) or Section 2(c), the following provisions shall apply:

     (a)  At or before the Effective Time of the Exchange Offer, the Shelf
  Registration or the Market Making Shelf Registration, whichever may be first,
  the Issuers shall qualify the Indenture under the Trust Indenture Act of 1939.

     (b)  In the event that such qualification would require the appointment of
  a new trustee under the Indenture, the Issuers shall appoint a new trustee
  thereunder pursuant to the applicable provisions of the Indenture.

     (c)  In connection with the Issuers' obligations with respect to the
  registration of Exchange Securities as contemplated by Section 2(a) (the
  "Exchange Registration"), if applicable, the Issuers shall, as soon as
  practicable (or as otherwise specified):

               (i)   prepare and file with the Commission no later than 60 days
          after the Closing Date, an Exchange Registration Statement on any form
          which may be utilized by the Issuers and which shall permit the
          Exchange Offer and resales of Exchange Securities by broker-dealers
          during the Resale Period to be effected as contemplated by Section
          2(a), and use their reasonable best efforts to cause such Exchange
          Registration Statement to become effective as soon as practicable
          thereafter, but no later than 180 days after the Closing Date;

               (ii)  as soon as practicable prepare and file with the Commission
          such amendments and supplements to such Exchange Registration
          Statement and the prospectus included therein as may be necessary to
          effect and maintain the effectiveness of such Exchange Registration
          Statement for the periods and purposes contemplated in Section 2(a)
          hereof and as may be required by the applicable rules and regulations
          of the Commission and the instructions applicable to the form of such
          Exchange Registration Statement, and promptly provide each broker-
          dealer holding Exchange Securities with such number of copies of the
          prospectus included therein (as then amended or supplemented), in
          conformity in all material respects with the requirements of the
          Securities Act and the Trust Indenture Act and the rules and
          regulations of the Commission thereunder, as such broker-dealer
          reasonably may request prior to the expiration of the Resale Period,
          for use in connection with resales of Exchange Securities;

               (iii) promptly notify each broker-dealer that has requested or
          received copies of the prospectus included in such Exchange
          Registration Statement, and confirm such advice in writing, (A) when
          such Exchange Registration Statement or the prospectus included
          therein or any prospectus amendment or supplement or post-effective
          amendment has been filed, and, with respect to such Exchange
          Registration Statement or any post-effective amendment, when the same
          has become effective, (B) if requested by such broker-dealer, of any
          comments by the Commission and by the blue sky or securities
          commissioner or regulator of any state with respect thereto or any
          request by the Commission for amendments or supplements to such
          Exchange Registration Statement or prospectus or for additional
          information, (C) of the issuance by the Commission of any stop order
          suspending the effectiveness of

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          such Exchange Registration Statement or the initiation or threatening
          of any proceedings for that purpose, (D) if at any time the
          representations and warranties of the Issuers contemplated by Section
          5 cease to be true and correct in all material respects, (E) of the
          receipt by the Issuers of any notification with respect to the
          suspension of the qualification of the Exchange Securities for sale in
          any jurisdiction or the initiation or threatening of any proceeding
          for such purpose, or (F) at any time during the Resale Period when a
          prospectus is required to be delivered under the Securities Act, that
          such Exchange Registration Statement, prospectus, prospectus amendment
          or supplement or post-effective amendment does not conform in all
          material respects to the applicable requirements of the Securities Act
          and the Trust Indenture Act and the rules and regulations of the
          Commission thereunder or contains an untrue statement of a material
          fact or omits to state any material fact required to be stated therein
          or necessary to make the statements therein not misleading in light of
          the circumstances then existing;

               (iv)   in the event that the Issuers would be required, pursuant
          to Section 3(c)(iii)(F) above, to notify any broker-dealers holding
          Exchange Securities, without unreasonable delay to prepare and furnish
          to each such holder a reasonable number of copies of a prospectus
          supplemented or amended so that, as thereafter delivered to purchasers
          of such Exchange Securities during the Resale Period, such prospectus
          shall conform in all material respects to the applicable requirements
          of the Securities Act and the Trust Indenture Act and the rules and
          regulations of the Commission thereunder and shall not contain an
          untrue statement of a material fact or omit to state a material fact
          required to be stated therein or necessary to make the statements
          therein not misleading in light of the circumstances then existing;

               (v)    use their reasonable best efforts to obtain the withdrawal
          of any order suspending the effectiveness of such Exchange
          Registration Statement or any post-effective amendment thereto at the
          earliest practicable date;

               (vi)   use their reasonable best efforts to (A) register or
          qualify the Exchange Securities under the securities laws or blue sky
          laws of such jurisdictions as are contemplated by Section 2(a) no
          later than the commencement of the Exchange Offer, (B) keep such
          registrations or qualifications in effect and comply with such laws so
          as to permit the continuance of offers, sales and dealings therein in
          such jurisdictions until the expiration of the Resale Period and (C)
          take any and all other actions as may be reasonably necessary or
          advisable to enable each broker-dealer holding Exchange Securities to
          consummate the disposition thereof in such jurisdictions; provided,
          however, that the Issuers shall not be required for any such purpose
          to (1) qualify as a foreign corporation in any jurisdiction wherein it
          would not otherwise be required to qualify but for the requirements of
          this Section 3(c)(vi), (2) consent to general service of process in
          any such jurisdiction or (3) make any changes to their certificate of
          incorporation or formation or by-laws or any agreement between them
          and their stockholders or members;

               (vii)  use their reasonable best efforts to obtain the consent or
          approval of each governmental agency or authority, whether federal,
          state or local, which may be required to effect the Exchange
          Registration, the Exchange Offer and the offering and sale of Exchange
          Securities by broker-dealers during the Resale Period;

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               (viii)  provide a CUSIP number for all Exchange Securities, not
          later than the applicable Effective Time of the Exchange Registration
          Statement; and

               (ix)    comply with all applicable rules and regulations of the
          Commission, and make generally available to their securityholders as
          soon as practicable but no later than eighteen months after the
          effective date of such Exchange Registration Statement, an earnings
          statement of the Company and its subsidiaries complying with Section
          11(a) of the Securities Act (including, at the option of the Company,
          Rule 158 thereunder).

     (d)  In connection with the Issuers' obligations with respect to the Shelf
Registration and the Market Making Shelf Registration, as applicable, the
Issuers shall use their reasonable best efforts to cause the applicable
Secondary Offer Registration Statement to permit the disposition of Registrable
Securities by the holders thereof, in the case of the Shelf Registration, and of
Securities or Exchange Securities by Goldman, Sachs & Co., in the case of a
Market Making Shelf Registration (subject to the second paragraph of Section
2(c) hereof), in accordance with the intended method or methods of disposition
thereof provided for in the applicable Secondary Offer Registration Statement.
In connection therewith, the Issuers shall, as soon as practicable (or as
otherwise specified):

               (i)     prepare and file with the Commission within the time
          periods specified in Section 2(b) or Section 2(c) hereof, as
          applicable, a Secondary Offer Registration Statement on any form which
          may be utilized by the Issuers and which shall (x) register all of the
          Registrable Securities, in the case of a Shelf Registration, and the
          Securities and Exchange Securities, in the case of a Market Making
          Shelf Registration, for resale by the holders thereof in accordance
          with such method or methods of disposition as may be specified by such
          of the holders of the Registrable Securities as, from time to time,
          may be Electing Holders, in the case of a Shelf Registration, or
          Goldman, Sachs & Co., in the case of a Market Making Shelf
          Registration, and (y) be, in the case of a Market Making Shelf
          Registration, in the form approved by Goldman, Sachs & Co., which
          approval shall not be unreasonably withheld, provided that, the
          Company shall not be prohibited from making any filing which it is
          legally obligated to make and (B) use their best efforts to cause such
          Secondary Offer Registration Statement to become effective as soon as
          practicable but in any case within the time periods specified in
          Section 2(b) or Section 2(c) hereof, as applicable;

               (ii)    not less than 30 calendar days prior to the Effective
          Time of the Shelf Registration Statement, mail the Notice and
          Questionnaire to the holders of Registrable Securities; no holder
          shall be entitled to be named as a selling securityholder in the Shelf
          Registration Statement as of the Effective Time, and no holder shall
          be entitled to use the prospectus forming a part thereof for resales
          of Registrable Securities at any time, unless such holder has returned
          a completed and signed Notice and Questionnaire to the Issuers by the
          deadline for response set forth therein; provided, however, holders of
          Registrable Securities shall have at least 28 calendar days from the
          date on which the Notice and Questionnaire is first mailed to such
          holders to return a completed and signed Notice and Questionnaire to
          the Issuers;

                                       10
<PAGE>

               (iii)   after the Effective Time of the Shelf Registration
          Statement, upon the request of any holder of Registrable Securities
          that is not then an Electing Holder, promptly send a Notice and
          Questionnaire to such holder; provided that the Issuers shall not be
          required to take any action to name such holder as a selling
          securityholder in the Shelf Registration Statement or to enable such
          holder to use the prospectus forming a part thereof for resales of
          Registrable Securities until such holder has returned a completed and
          signed Notice and Questionnaire to the Issuers;

               (iv)    prepare and file with the Commission such amendments and
          supplements to the Secondary Offer Registration Statement and the
          prospectus included therein as may be necessary to effect and maintain
          the effectiveness of such Secondary Offer Registration Statement for
          the period specified in Section 2(b) or Section 2(c) hereof, as
          applicable, and as may be required by the applicable rules and
          regulations of the Commission and the instructions applicable to the
          form of such Secondary Offer Registration Statement and, in the case
          of an amendment to or supplement of the Market Making Shelf
          Registration Statement, each in a form approved by Goldman, Sachs &
          Co., which approval shall not be unreasonably withheld, provided that,
          the Company shall not be prohibited from making any filing which it is
          legally obligated to make and (B) furnish to the Electing Holders, in
          the case of a Shelf Registration, and Goldman, Sachs & Co., in the
          case of a Market Making Shelf Registration, copies of any such
          supplement or amendment simultaneously with or prior to its being used
          or filed with the Commission;

               (v)     comply with the provisions of the Securities Act with
          respect to the disposition of all of the Registrable Securities,
          Securities or Exchange Securities, as applicable, covered by such
          Secondary Offer Registration Statement in accordance with the intended
          methods of disposition by the Electing Holders, in the case of a Shelf
          Registration, or Goldman, Sachs & Co., in the case of a Market Making
          Shelf Registration provided for therein;

               (vi)    provide (A) with respect to a Shelf Registration, the
          Electing Holders, and (B) the underwriters (which term, for purposes
          of this Exchange and Registration Rights Agreement, shall include a
          person deemed to be an underwriter within the meaning of Section
          2(a)(11) of the Securities Act), if any, thereof, the sales or
          placement agent therefor, and one counsel for any such underwriter or
          agent and not more than one counsel for all the Electing Holders, the
          opportunity to participate in the preparation of such Secondary Offer
          Registration Statement, each prospectus included therein or filed with
          the Commission and each amendment or supplement thereto;

               (vii)   for a reasonable period prior to the filing of such
          Secondary Offer Registration Statement, and throughout the period
          specified in Section 2(b) or Section 2(c) hereof, as applicable, make
          available at reasonable times at the Company's principal place of
          business or such other reasonable place for inspection by the persons
          referred to in Section 3(d)(vi) who shall certify to the Issuers that
          they have a current intention to sell the Registrable Securities
          pursuant to the Shelf Registration, or the Securities or Exchange
          Securities pursuant to the Market Making Shelf Registration, as
          applicable, such financial and other information and books and records
          of the Issuers, and shall use its reasonable best efforts to cause the
          officers,

                                       11
<PAGE>

          employees, counsel and independent certified public accountants of the
          Issuers to respond to such inquiries, as shall be reasonably
          necessary, in the judgment of the respective counsel referred to in
          such Section 3(d)(vi), to conduct a reasonable investigation within
          the meaning of Section 11 of the Securities Act; provided, however,
          that each such party shall be required to maintain in confidence and
          not to disclose to any other person any information or records
          reasonably designated by the Issuers as being confidential, until such
          time as (A) such information becomes a matter of public record
          (whether by virtue of its inclusion in such Secondary Offer
          Registration Statement or otherwise), or (B) such person shall be
          required so to disclose such information pursuant to a subpoena or
          order of any court or other governmental agency or body having
          jurisdiction over the matter (subject to the requirements of such
          order, and only after such person shall have given the Issuers prompt
          prior written notice of such requirement), or (C) such information is
          required to be set forth in such Secondary Offer Registration
          Statement or the prospectus included therein or in an amendment to
          such Secondary Offer Registration Statement or an amendment or
          supplement to such prospectus in order that such Secondary Offer
          Registration Statement, prospectus, amendment or supplement, as the
          case may be, complies with applicable requirements of the federal
          securities laws and the rules and regulations of the Commission and
          does not contain an untrue statement of a material fact or omit to
          state therein a material fact required to be stated therein or
          necessary to make the statements therein not misleading in light of
          the circumstances then existing;

               (viii)  promptly notify each of the Electing Holders or
          Goldman, Sachs & Co., as applicable, any sales or placement agent
          therefor and any underwriter thereof (which notification may be made
          through any managing underwriter that is a representative of such
          underwriter for such purpose) and, if requested in writing, confirm
          such advice in writing, (A) when such Secondary Offer Registration
          Statement or the prospectus included therein or any prospectus
          amendment or supplement or post-effective amendment has been filed,
          and, with respect to such Secondary Offer Registration Statement or
          any post-effective amendment, when the same has become effective, (B)
          of any comments by the Commission and by the blue sky or securities
          commissioner or regulator of any state with respect thereto or any
          request by the Commission for amendments or supplements to such
          Secondary Offer Registration Statement or prospectus or for additional
          information, (C) of the issuance by the Commission of any stop order
          suspending the effectiveness of such Secondary Offer Registration
          Statement or the initiation or threatening of any proceedings for that
          purpose, (D) if at any time the representations and warranties of the
          Issuers contemplated by Section 3(d)(xvii) or Section 5 cease to be
          true and correct in all material respects, (E) of the receipt by the
          Issuers of any notification with respect to the suspension of the
          qualification of the Registrable Securities or the Securities or
          Exchange Securities, as applicable, for sale in any jurisdiction or
          the initiation or threatening of any proceeding for such purpose, or
          (F) if at any time when a prospectus is required to be delivered under
          the Securities Act, that such Secondary Offer Registration Statement,
          prospectus, prospectus amendment or supplement or post-effective
          amendment does not conform in all material respects to the applicable
          requirements of the Securities Act and the Trust Indenture Act and the
          rules and regulations of the Commission thereunder or contains an
          untrue statement of a material fact or omits to state any material
          fact required to be stated therein or

                                       12
<PAGE>

          necessary to make the statements therein not misleading in light of
          the circumstances then existing;

               (ix)    use their reasonable best efforts to obtain the
          withdrawal of any order suspending the effectiveness of such Secondary
          Offer Registration Statement or any post-effective amendment thereto
          at the earliest practicable date;

               (x)     if requested by any managing underwriter or
          underwriters, any placement or sales agent, any Electing Holder or
          Goldman, Sachs & Co., promptly incorporate in a prospectus supplement
          or post-effective amendment such information as is required by the
          applicable rules and regulations of the Commission and as such
          managing underwriter or underwriters, such agent, such Electing Holder
          or Goldman, Sachs & Co. specifies should be included therein relating
          to the terms of the sale of such Registrable Securities or the
          Securities or Exchange Securities, as applicable, including
          information with respect to the principal amount thereof being sold by
          such Electing Holder, Goldman, Sachs & Co. or such agent or to any
          underwriters, the name and description of such Electing Holder, a
          description of Goldman, Sachs & Co., such agent or such underwriter,
          the offering price of such Registrable Securities, Securities or
          Exchange Securities, as applicable, and any discount, commission or
          other compensation payable in respect thereof and the purchase price
          being paid therefor by such underwriters and with respect to any other
          terms of the offering of the Registrable Securities, Securities or
          Exchange Securities, as applicable, to be sold by such Electing
          Holder, Goldman, Sachs & Co. or such agent or to such underwriters, as
          applicable; and make all required filings of such prospectus
          supplement or post-effective amendment promptly after notification of
          the matters to be incorporated in such prospectus supplement or post-
          effective amendment;

               (xi)    furnish to Goldman, Sachs & Co., each Electing Holder,
          each placement or sales agent, if any, therefor, each underwriter, if
          any, thereof and the respective counsel referred to in Section
          3(d)(vi) an executed copy (or, in the case of an Electing Holder, a
          conformed copy) of such Secondary Offer Registration Statement, each
          such amendment and supplement thereto (in each case including all
          exhibits thereto (in the case of an Electing Holder of Registrable
          Securities, upon request) and documents incorporated by reference
          therein) and such number of copies of such Secondary Offer
          Registration Statement (excluding exhibits thereto and documents
          incorporated by reference therein unless specifically so requested by
          Goldman, Sachs & Co., such Electing Holder, agent or underwriter, as
          the case may be) and of the prospectus included in such Secondary
          Offer Registration Statement (including each preliminary prospectus
          and any summary prospectus), in conformity in all material respects
          with the applicable requirements of the Securities Act and the Trust
          Indenture Act and the rules and regulations of the Commission
          thereunder, and such other documents, as Goldman, Sachs & Co., such
          Electing Holder, agent, if any, and underwriter, if any, may
          reasonably request in order to facilitate the offering and disposition
          of the Registrable Securities owned by such Electing Holder, the
          Securities or Exchange Securities owned by Goldman, Sachs & Co., and
          the Registrable Securities, Securities or Exchange Securities offered
          or sold by such agent or underwritten by such underwriter, as
          applicable, and to permit Goldman, Sachs & Co., such Electing Holder,
          agent and underwriter to satisfy the prospectus delivery requirements
          of the Securities Act; and the Issuers hereby consent to the

                                       13
<PAGE>

          use of such prospectus (including such preliminary and summary
          prospectus) and any amendment or supplement thereto by Goldman, Sachs
          & Co. (subject to the second paragraph of Section 2(c) hereof), each
          such Electing Holder and by any such agent and underwriter, in each
          case in the form most recently provided to such person by the Issuers,
          in connection with the offering and sale of the Registrable
          Securities, Securities or Exchange Securities covered by the
          prospectus (including such preliminary and summary prospectus) or any
          supplement or amendment thereto;

               (xii)   use reasonable best efforts to (A) register or qualify
          the Registrable Securities, Securities or Exchange Securities, as
          applicable, to be included in such Secondary Offer Registration
          Statement under such securities laws or blue sky laws of such
          jurisdictions as any Electing Holder, Goldman, Sachs & Co. and each
          placement or sales agent, if any, therefor and underwriter, if any,
          thereof shall reasonably request, (B) keep such registrations or
          qualifications in effect and comply with such laws so as to permit the
          continuance of offers, sales and dealings therein in such
          jurisdictions during the period the Shelf Registration is required to
          remain effective under Section 2(b) above or the period the Market
          Making Shelf Registration is required to remain effective under
          Section 2(c) above, as applicable, and for so long as may be necessary
          to enable Goldman, Sachs & Co., any such Electing Holder, agent or
          underwriter to complete its distribution of Registrable Securities,
          Securities, or Exchange Securities, as applicable, pursuant to such
          Secondary Offer Registration Statement and (C) take any and all other
          actions as may be reasonably necessary or advisable to enable each
          such Electing Holder and Goldman, Sachs & Co., as applicable, such
          agent, if any, and underwriter, if any, to consummate the disposition
          in such jurisdictions of such Registrable Securities, Securities or
          Exchange Securities, as applicable; provided, however, that the
          Issuers shall not be required for any such purpose to (1) qualify as a
          foreign corporation in any jurisdiction wherein it would not otherwise
          be required to qualify but for the requirements of this Section
          3(d)(xii), (2) consent to general service of process in any such
          jurisdiction or (3) make any changes to their certificate of
          incorporation or by-laws or any agreement between them and their
          stockholders;

               (xiii)  use their reasonable best efforts to obtain the consent
          or approval of each governmental agency or authority, whether federal,
          state or local, which may be required of the Issuers or, with respect
          to the Registrable Securities, Securities or Exchange Securities, as
          applicable, to effect the Shelf Registration or the Market Marking
          Shelf Registration, or the offering or sale in connection therewith or
          to enable the selling holder or holders or Goldman, Sachs & Co. to
          offer, or to consummate the disposition of, their Registrable
          Securities;

               (xiv)   Unless any Registrable Securities shall be in book-entry
          only form, cooperate with the Electing Holders or Goldman, Sachs & Co.
          and the managing underwriters, if any, to facilitate the timely
          preparation and delivery of certificates representing Registrable
          Securities, Securities or Exchange Securities to be sold, which
          certificates, if so required by any securities exchange upon which any
          Registrable Securities, Securities or Exchange Securities are listed,
          shall be penned, lithographed or engraved, or produced by any
          combination of such methods, on steel engraved borders, and which
          certificates shall not bear any restrictive legends; and,

                                       14
<PAGE>

          in the case of an underwritten offering, enable such Registrable
          Securities, Securities or Exchange Securities, as applicable, to be in
          such denominations and registered in such names as the managing
          underwriters may request at least two business days prior to any sale
          of the Registrable Securities, Securities or Exchange Securities, as
          applicable;

               (xv)    provide a CUSIP number for all Registrable Securities,
          Securities or Exchange Securities, as applicable, not later than the
          applicable Effective Time;

               (xvi)   enter into one or more underwriting agreements,
          engagement letters, agency agreements, "best efforts" underwriting
          agreements or similar agreements, as appropriate, including customary
          provisions relating to indemnification and contribution, and take such
          other actions in connection therewith as, (A) in the case of a Shelf
          Registration, any Electing Holders aggregating at least 25% in
          aggregate principal amount of the Registrable Securities at the time
          outstanding shall request in order to expedite or facilitate the
          disposition of such Registrable Securities, Securities or Exchange
          Securities, as applicable; provided that the Issuers shall not be
          required to enter into any such agreement more than twice with respect
          to all of the Registrable Securities and may delay entering into any
          such agreement until the consummation of any underwritten public
          offering in which the Issuers shall be engaged provided that such
          delay is reasonable;

               (xvii)  whether or not an agreement of the type referred to in
          Section 3(d)(xvi) hereof is entered into and whether or not any
          portion of the offering contemplated by the Secondary Offer
          Registration is an underwritten offering or is made through a
          placement or sales agent or any other entity, (A) make such
          representations and warranties to the Electing Holders, Goldman, Sachs
          & Co. (to the extent reasonably requested by Goldman, Sachs & Co.) and
          the placement or sales agent, if any, therefor and the underwriters,
          if any, thereof in form, substance and scope as are customarily made
          in connection with an offering of debt securities pursuant to any
          appropriate agreement or to a registration statement filed on the form
          applicable to the Shelf Registration or the Market Making Shelf
          Registration, as applicable; (B) obtain an opinion of counsel to the
          Issuers in customary form and covering such matters, of the type
          customarily covered by such an opinion, as the managing underwriters,
          if any, and in the case of a Shelf Registration, as any Electing
          Holders of at least 25% in aggregate principal amount of the
          Registrable Securities at the time outstanding or, in the case of a
          Market Making Shelf Registration, as Goldman, Sachs & Co. may
          reasonably request, addressed to such Electing Holder or Electing
          Holders, Goldman, Sachs & Co. and the placement or sales agent, if
          any, therefor and the underwriters, if any, thereof and dated the
          effective date of such Secondary Offer Registration Statement (and if
          such Secondary Offer Registration Statement contemplates an
          underwritten offering of a part or all of the Registrable Securities,
          Securities or Exchange Securities, as applicable, dated the date of
          the closing under the underwriting agreement relating thereto); (C)
          obtain a "cold comfort" letter or letters from the independent
          certified public accountants of the Company addressed to the selling
          Electing Holders, the placement or sales agent, if any, therefor or
          the underwriters, if any, thereof, dated (i) the effective date of
          such Secondary Offer Registration Statement and (ii) the effective
          date of any prospectus supplement to the prospectus included in such
          Secondary Offer Registration Statement or

                                       15
<PAGE>

          post-effective amendment or supplement to such Secondary Offer
          Registration Statement which includes unaudited or audited financial
          statements as of a date or for a period subsequent to that of the
          latest such statements included in such prospectus (and, if such
          Secondary Offer Registration Statement contemplates an underwritten
          offering pursuant to any prospectus supplement to the prospectus
          included in such Secondary Offer Registration Statement or post-
          effective amendment to such Secondary Offer Registration Statement
          which includes unaudited or audited financial statements as of a date
          or for a period subsequent to that of the latest such statements
          included in such prospectus, dated the date of the closing under the
          underwriting agreement relating thereto), such letter or letters to be
          in customary form and covering such matters of the type customarily
          covered by letters of such type; (D) deliver such documents and
          certificates, including officers' certificates, as may be reasonably
          requested, in the case of a Shelf Registration, by any Electing
          Holders of at least 25% in aggregate principal amount of the
          Registrable Securities at the time outstanding and the placement or
          sales agent, if any, therefor and the managing underwriters, if any,
          thereof to evidence the accuracy of the representations and warranties
          made pursuant to clause (A) above or those contained in Section 5(a)
          hereof and the compliance with or satisfaction of any agreements or
          conditions contained in the underwriting agreement or other agreement
          entered into by the Issuers; and (E) undertake such obligations
          relating to expense reimbursement, indemnification and contribution as
          are provided in Section 6 hereof;

               (xviii) notify in writing each holder of Registrable Securities
          affected thereby and Goldman, Sachs & Co. of any proposal by the
          Issuers to amend or waive any provision of this Exchange and
          Registration Rights Agreement pursuant to Section 9(h) hereof and of
          any amendment or waiver effected pursuant thereto, each of which
          notices shall contain the text of the amendment or waiver proposed or
          effected, as the case may be;

               (xix)   in the event that any broker-dealer registered under the
          Exchange Act shall underwrite any Registrable Securities, Securities
          or Exchange Securities or participate as a member of an underwriting
          syndicate or selling group or "assist in the distribution" (within the
          meaning of the Conduct Rules (the "Conduct Rules) of the National
          Association of Securities Dealers, Inc. ("NASD") or any successor
          thereto, as amended from time to time) thereof, whether as a holder of
          such Registrable Securities, Securities or Exchange Securities or as
          an underwriter, a placement or sales agent or a broker or dealer in
          respect thereof, or otherwise, assist such broker-dealer in complying
          with the requirements of such Conduct Rules, including by (A) if such
          Conduct Rules shall so require, engaging a "qualified independent
          underwriter" (as defined in such Conduct Rules) to participate in the
          preparation of the Secondary Offer Registration Statement relating to
          such Registrable Securities, Securities or Exchange Securities, as
          applicable, to exercise usual standards of due diligence in respect
          thereto and, if any portion of the offering contemplated by such
          Secondary Offer Registration Statement is an underwritten offering or
          is made through a placement or sales agent, to recommend the yield of
          such Registrable Securities, Securities or Exchange Securities, (B)
          indemnifying any such qualified independent underwriter to the extent
          of the indemnification of underwriters provided in Section 6 hereof
          (or to such other customary extent as may be requested by such

                                       16
<PAGE>

          underwriter), and (C) providing such information to such broker-dealer
          as may be required in order for such broker-dealer to comply with the
          requirements of the Conduct Rules;

               (xx)    comply with all applicable rules and regulations of the
          Commission, and make generally available to their securityholders as
          soon as practicable but in any event not later than eighteen months
          after the effective date of such Secondary Offer Registration
          Statement, an earnings statement of the Company and its subsidiaries
          complying with Section 11(a) of the Securities Act (including, at the
          option of the Company, Rule 158 thereunder); and

               (xxi)   for so long as Goldman, Sachs & Co. may be required to
          deliver a prospectus in connection with the offer and sale of
          Securities or Exchange Securities in secondary transactions to furnish
          to Goldman, Sachs & Co. copies of all reports or other communications
          (financial or other) furnished to stockholders or members of the
          Issuers, and make available to Goldman, Sachs & Co. (i) as soon as
          they are available, copies of any reports and financial statements
          furnished to or filed with the Commission or any national securities
          exchange or interdealer automated quotation system on which the
          Securities or Exchange Securities or any other securities of the
          Issuers are listed or quoted and the documents specified in Section
          4.03 of the Indenture, as in effect on the Closing; and (ii) such
          additional information concerning the business and financial condition
          of the Issuers and their subsidiaries as Goldman, Sachs & Co. may from
          time to time reasonably request (such financial statements to be on a
          consolidated basis to the extent the accounts of the Issuers are
          consolidated in reports furnished to its stockholders or members
          generally or to the Commission).

     (e)  In the event that the Issuers would be required, pursuant to Section
3(d)(viii)(F) above, to notify the Electing Holders, Goldman, Sachs & Co., the
placement or sales agent, if any, therefor and the managing underwriters, if
any, thereof, the Issuers shall without unreasonable delay prepare and furnish
to each of the Electing Holders, to each such person, a reasonable number of
copies of a prospectus supplemented or amended so that, as thereafter delivered
to purchasers of Registrable Securities, Securities or Exchange Securities, as
applicable, such prospectus shall conform in all material respects to the
applicable requirements of the Securities Act and the Trust Indenture Act and
the rules and regulations of the Commission thereunder and shall not contain an
untrue statement of a material fact or omit to state a material fact required to
be stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing. Each Electing Holder and Goldman,
Sachs & Co. agree that upon receipt of any notice from the Issuers pursuant to
Section 3(d)(viii)(F) hereof, such Electing Holder and Goldman, Sachs & Co.
shall forthwith discontinue the disposition of Registrable Securities,
Securities or Exchange Securities, as applicable, pursuant to the Secondary
Offer Registration Statement applicable to such Registrable Securities,
Securities or Exchange Securities, as applicable, until such Electing Holder or
Goldman, Sachs & Co., as applicable, shall have received copies of such amended
or supplemented prospectus, and if so directed by the Issuers, such Electing
Holder or Goldman, Sachs & Co. shall deliver to the Issuers (at the Issuers'
expense) all copies, other than permanent file copies, then in such Electing
Holder's or Goldman, Sachs & Co.'s possession of the prospectus covering such
Registrable Securities, Securities or Exchange Securities, as applicable, at the
time of receipt of such notice.

                                       17
<PAGE>

     (f)  In addition to the information required to be provided in a Notice and
Questionnaire by each Electing Holder as to which any Shelf Registration
pursuant to Section 2(b) is being effected or to be provided by Goldman, Sachs &
Co. in connection with the Market Making Shelf Registration pursuant to Section
2(c), the Issuers may require an Electing Holder or Goldman, Sachs & Co., as
applicable, to furnish to the Issuers in writing such additional information
regarding such Electing Holder or Goldman, Sachs & Co. and such Electing
Holder's or Goldman, Sachs & Co.'s intended method of distribution of the
applicable Registrable Securities, Securities or Exchange Securities as the
Issuers may from time to time reasonably request in writing, but only to the
extent that such information is required or necessary in order to comply with
the Securities Act. No holder may include any of its Registrable Securities in
any Shelf Registration pursuant to the Exchange and Registration Rights
Agreement or be entitled to receive Special Interest unless and until such
Holder furnishes to the Company, in writing, such information (after being
requested in writing to provide such information) as is required by applicable
law for use in connection with any Shelf Registration or related prospectus or
preliminary prospectus. Each such Electing Holder and Goldman, Sachs & Co.
agrees to notify the Issuers in writing as promptly as practicable of any
inaccuracy or change in information previously furnished by such Electing Holder
or Goldman, Sachs & Co., as the case may be, to the Issuers or of the occurrence
of any event in either case as a result of which any prospectus relating to such
Shelf Registration or Market Making Shelf Registration, as applicable, contains
or would contain an untrue statement of a material fact regarding such Electing
Holder or Goldman, Sachs & Co. or such Electing Holder's or Goldman, Sachs &
Co.'s intended method of disposition of the applicable Registrable Securities,
Securities or Exchange Securities or omits to state any material fact regarding
such Electing Holder or Goldman, Sachs & Co. or such Electing Holder's or
Goldman, Sachs & Co.'s intended method of disposition of the applicable
Registrable Securities, Securities or Exchange Securities required to be stated
therein or necessary to make the statements therein not misleading in the light
of the circumstances then existing, and promptly to furnish to the Issuers any
additional information required to correct and update any previously furnished
information or required so that such prospectus shall not contain, with respect
to such Electing Holder or Goldman, Sachs & Co. or the disposition of the
applicable Registrable Securities, Securities or Exchange Securities, an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing.

     (g)  Until the expiration of two years after the Closing Date, the Issuers
will not, and will not permit any of their "affiliates" (as defined in Rule 144)
to, resell any of the Securities that have been reacquired by any of them except
pursuant to an effective registration statement under the Securities Act.

     4.   Registration Expenses.

          The Issuers agree to bear and to pay or cause to be paid promptly all
expenses incident to the Issuers' performance of or compliance with this
Exchange and Registration Rights Agreement (excluding fees and disbursements of
counsel to the Initial Purchasers and fees and disbursements of

                                       18
<PAGE>

counsel for the placement or sales agent or underwriters in connection with such
registration, filing and review, (b) all fees and expenses in connection with
the qualification of the Registrable Securities, Securities or Exchange
Securities, as applicable, for offering and sale under the State securities and
blue sky laws referred to in Sections 3(d)(vi) and 3(d)(xii) hereof and
determination of their eligibility for investment under the laws of such
jurisdictions as any managing underwriters or the Electing Holders or Goldman,
Sachs & Co. may designate in writing to the Issuers, including any fees and
disbursements of counsel for the Electing Holders or Goldman, Sachs & Co. or
underwriters in connection with such qualification and determination, (c) all
expenses relating to the preparation, printing, production, distribution and
reproduction of each registration statement required to be filed hereunder, each
prospectus included therein or prepared for distribution pursuant hereto, each
amendment or supplement to the foregoing, the expenses of preparing the
Securities or Exchange Securities for delivery and the expenses of printing or
producing any underwriting agreements, agreements among underwriters, selling
agreements and blue sky or legal investment memoranda and all other documents in
connection with the offering, sale or delivery of Securities or Exchange
Securities to be disposed of (including certificates representing the Securities
or Exchange Securities), (d) messenger, telephone and delivery expenses relating
to the offering, sale or delivery of Securities or Exchange Securities and the
preparation of documents referred in clause (c) above, (e) fees and expenses of
the Trustee under the Indenture, any agent of the Trustee and any counsel for
the Trustee and of any collateral agent or custodian, (f) internal expenses
(including all salaries and expenses of the Issuers' officers and employees
performing legal or accounting duties), (g) fees, disbursements and expenses of
counsel and independent certified public accountants of the Issuers (including
the expenses of any opinions or "cold comfort" letters required by or incident
to such performance and compliance), (h) fees, disbursements and expenses of any
"qualified independent underwriter" engaged pursuant to Section 3(d)(xix)
hereof, (i) fees, disbursements and expenses of one counsel for the Electing
Holders retained in connection with a Shelf Registration, as selected by the
Electing Holders of at least a majority in aggregate principal amount of the
Registrable Securities held by such Electing Holders (which counsel shall be
reasonably satisfactory to the Issuers), (j) any fees charged by securities
rating services for rating the Securities or Exchange Securities, and (k) fees,
expenses and disbursements of any other persons, including special experts,
retained by the Issuers in connection with such registration (collectively, the
"Registration Expenses"). To the extent that any Registration Expenses are
incurred, assumed or paid by any holder of Registrable Securities, Goldman,
Sachs & Co. or any placement or sales agent therefor or underwriter thereof, the
Issuers shall reimburse such person for the full amount of the Registration
Expenses so incurred, assumed or paid promptly after receipt of a request
therefor. Notwithstanding the foregoing, the holders of the Registrable
Securities being registered, or Goldman, Sachs & Co., as applicable, shall pay
all agency fees and commissions and underwriting discounts and commissions
attributable to the sale of the applicable Registrable Securities, Securities or
Exchange Securities and the fees and disbursements of any counsel or other
advisors or experts retained by such holders (severally or jointly), other than
the counsel and experts specifically referred to above.

     5.   Representations and Warranties.

          The Issuers represent and warrant to, and agree with, each Purchaser
and each of the holders from time to time of Registrable Securities that:

                                       19
<PAGE>

     (a)  Each registration statement covering Registrable Securities,
Securities or Exchange Securities and each prospectus (including any preliminary
or summary prospectus) contained therein or furnished pursuant to Section 3(c)
or Section 3(d) hereof and any further amendments or supplements to any such
registration statement or prospectus, when it becomes effective or is filed with
the Commission, as the case may be, and, in the case of an underwritten offering
of Registrable Securities, Securities or Exchange Securities, at the time of the
closing under the underwriting agreement relating thereto, will conform in all
material respects to the requirements of the Securities Act and the Trust
Indenture Act and the rules and regulations of the Commission thereunder and
will not contain an untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading; and at all times subsequent to the applicable Effective
Time when a prospectus would be required to be delivered under the Securities
Act, other than (A) from (i) such time as a notice has been given to holders of
Registrable Securities or Goldman, Sachs & Co., as applicable, pursuant to
Section 3(c)(iii)(F) or Section 3(d)(viii)(F) hereof until (ii) such time as the
Issuers furnish an amended or supplemented prospectus pursuant to Section
3(c)(iv) or Section 3(e) hereof or (B) during any suspension of offering and
sale pursuant to the second paragraph of Section 2 (b) or 2(c) hereof, each such
registration statement, and each prospectus (including any summary prospectus)
contained therein or furnished pursuant to Section 3(c) or Section 3(d) hereof,
as then amended or supplemented, will conform in all material respects to the
requirements of the Securities Act and the Trust Indenture Act and the rules and
regulations of the Commission thereunder and will not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading in the
light of the circumstances then existing; provided, however, that this
representation and warranty shall not apply to any statements or omissions made
in reliance upon and in conformity with information furnished in writing to the
Issuers by a holder of Registrable Securities or Goldman, Sachs & Co., as
applicable, expressly for use therein.

     (b)  Any documents incorporated by reference in any prospectus referred to
in Section 5(a) hereof, when they become or became effective or are or were
filed with the Commission, as the case may be, will conform or conformed in all
material respects to the requirements of the Securities Act or the Exchange Act,
as applicable, and none of such documents will contain or contained an untrue
statement of a material fact or will omit or omitted to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading; provided, however, that this representation and warranty shall not
apply to any statements or omissions made in reliance upon and in conformity
with information furnished in writing to the Issuers by a holder of Registrable
Securities or Goldman, Sachs & Co., as applicable, expressly for use therein.

     (c)  The compliance by the Issuers with all of the provisions of this
Exchange and Registration Rights Agreement and the consummation of the
transactions herein contemplated will not conflict with or result in a breach of
any of the terms or provisions of, or constitute a default under, any indenture,
mortgage, deed of trust, loan agreement or other agreement or instrument to
which the Issuers or any subsidiary of the Issuers is a party or by which the
Issuers or any subsidiary of the Issuers is bound or to which any of the
property or assets of the Issuers or any subsidiary of the Issuers is subject,
except for such conflicts, breaches, violations or defaults which would not have
a material adverse effect on the business, consolidated financial position,
stockholders' equity or results of operations of the

                                       20
<PAGE>

Company and its subsidiaries take as a whole, nor will such action result in any
violation of the provisions of the certificate of incorporation, as amended, or
the by-laws of the Issuers or any statute or any order, rule or regulation of
any court or governmental agency or body having jurisdiction over the Issuers or
any subsidiary of the Issuers or any of their properties; and no consent,
approval, authorization, order, registration or qualification of or with any
such court or governmental agency or body is required for the consummation by
the Issuers of the transactions contemplated by this Exchange and Registration
Rights Agreement, except in connection with the registration under the
Securities Act of the Registrable Securities, Securities or Exchange Securities,
qualification of the Indenture under the Trust Indenture Act and such consents,
approvals, authorizations, registrations or qualifications as may be required
under State securities or blue sky laws in connection with the offering and
distribution of the Registrable Securities, Securities or Exchange Securities.

     (d)  This Exchange and Registration Rights Agreement has been duly
authorized, executed and delivered by the Issuers.

     6.   Indemnification.

     (a)  Indemnification by the Issuers. The Issuers jointly and severally,
will indemnify and hold harmless each of the holders of Registrable Securities
included in an Exchange Registration Statement, each of the Electing Holders of
Registrable Securities included in a Shelf Registration Statement and Goldman,
Sachs & Co. as holder of Securities or Exchange Securities included in a Market
Making Shelf Registration Statement and each person who participates as a
placement or sales agent or as an underwriter in any offering or sale of such
Registrable Securities, Securities or Exchange Securities, against any losses,
claims, damages or liabilities, joint or several, to which Goldman, Sachs & Co.,
or such holder, Electing Holder, agent or underwriter may become subject under
the Securities Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon an
untrue statement or alleged untrue statement of a material fact contained in any
Exchange Registration Statement or Secondary Offer Registration Statement, as
the case may be, under which such Registrable Securities, Securities or Exchange
Securities, were registered under the Securities Act, or any preliminary, final
or summary prospectus contained therein or furnished by the Issuers to Goldman,
Sachs & Co., any such holder, Electing Holder, agent or underwriter, or any
amendment or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and will
reimburse Goldman, Sachs & Co., such holder, such Electing Holder, such agent
and such underwriter for any legal or other expenses reasonably incurred by them
in connection with investigating or defending any such action or claim as such
expenses are incurred; provided, however, that the Issuers shall not be liable
to any such person in any such case to the extent that any such loss, claim,
damage or liability arises out of or is based upon an untrue statement or
alleged untrue statement or omission or alleged omission made in such
registration statement, or preliminary, final or summary prospectus, or
amendment or supplement thereto, in reliance upon and in conformity with written
information furnished to the Issuers by such person expressly for use therein
and provided, further, that with respect to any loss, claim, damage or liability
caused by an untrue statement or omission of a material fact made in a
preliminary prospectus, the indemnity agreement contained in this Section 6(a)
shall not inure to the benefit of any person from whom the person asserting any
such loss, claim,

                                       21
<PAGE>

damage or liability purchased the Registrable Securities concerned, to the
extent that any such loss, claim, damage or liability of such person occurs
under the circumstance where (i) it shall have been determined by a court of
competent jurisdiction by final and nonappealable judgment that (w) the Company
had previously furnished copies of the final prospectus (or the final prospectus
as amended or supplemented) to such person or their representative in sufficient
quantities and at such time to permit its delivery at or prior to the
confirmation of the sale of such Registrable Securities, (x) delivery of the
final prospectus (or the final prospectus as amended or supplemented) was
required by law to be made to such person, (y) the untrue statement or omission
of a material fact contained in the preliminary prospectus was corrected in the
final prospectus (or the final prospectus as amended or supplemented), and (z)
there was not sent or given to the person, at or prior to the written
confirmation of the sale of such Registrable Securities to such person, a copy
of the final prospectus (or the final prospectus as amended or supplemented) and
(ii) such loss, claim, damage or liability would have been eliminated by the
delivery of such corrected final prospectus (or the final prospectus as amended
or supplemented). Additionally, the indemnification provided for in this section
shall not be available to any indemnified party with respect to any sale or
disposition of Securities or Exchange Securities that occurs after notice
pursuant to the second paragraph of 2(c) if the indemnified party is in
violation of the provisions of Section 2(c).

     (b)  Indemnification by the Holders and any Agents and Underwriters in
Connection with any Shelf Registration. The Issuers may require, as a condition
to including any Registrable Securities in any Shelf Registration filed pursuant
to Section 2(b) hereof and to entering into any underwriting agreement with
respect thereto, that the Issuers shall have received an undertaking reasonably
satisfactory to it from the Electing Holder of such Registrable Securities and
from each underwriter named in any such underwriting agreement, severally and
not jointly, to (i) indemnify and hold harmless the Issuers and all other
holders of Registrable Securities, against any losses, claims, damages or
liabilities to which the Issuers or such other holders of Registrable Securities
may become subject, under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out
of or are based upon an untrue statement or alleged untrue statement of a
material fact contained in such registration statement, or any preliminary,
final or summary prospectus contained therein or furnished by the Issuers to any
such Electing Holder, agent or underwriter, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein not misleading, in each case to the extent, but only to
the extent, that such untrue statement or alleged untrue statement or omission
or alleged omission was made in reliance upon and in conformity with written
information furnished to the Issuers by such Electing Holder or underwriter
expressly for use therein, and (ii) reimburse the Issuers for any legal or other
expenses reasonably incurred by the Issuers in connection with investigating or
defending any such action or claim as such expenses are incurred; provided,
however, that no such Electing Holder shall be required to undertake liability
to any person under this Section 6(b) for any amounts in excess of the dollar
amount of the proceeds to be received by such Electing Holder from the sale of
such Electing Holder's Registrable Securities pursuant to such registration.

     (c)  Indemnification by Goldman, Sachs & Co. and any Agents and
Underwriters in Connection with the Market Making Shelf Registration. The
Issuers may require, as a condition to including any Securities or Exchange
Securities in the Market Making Shelf

                                       22
<PAGE>

Registration Statement filed pursuant to Section 2(c) hereof and to entering
into any underwriting agreement with respect thereto, that the Issuers shall
have received an undertaking reasonably satisfactory to them from each
underwriter named in any such underwriting agreement, severally and not jointly,
to, and Goldman, Sachs & Co., shall, and hereby agrees to, (i) indemnify and
hold harmless the Issuers against any losses, claims, damages or liabilities to
which the Issuers may become subject, under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement or alleged untrue
statement of a material fact contained in the Market Making Shelf Registration
Statement, or any preliminary, final or summary prospectus contained therein or
furnished by the Issuers to Goldman, Sachs & Co. or to any such agent or
underwriter, or any amendment or supplement thereto, or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not
misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was made
in reliance upon and in conformity with written information furnished to the
Issuers by Goldman, Sachs & Co. or such underwriter expressly for use therein,
and (ii) reimburse the Issuers for any legal or other expenses reasonably
incurred by the Issuers in connection with investigating or defending any such
action or claim as such expenses are incurred; provided, however, that, in the
case of Securities held by Goldman, Sachs & Co. at the time of the Exchange
Offer, Goldman, Sachs & Co. shall not be required to undertake liability to any
person under this Section 6(c) for any amounts in excess of the dollar amount of
the proceeds to be received by Goldman, Sachs & Co. from the sale of such
Securities by Goldman, Sachs & Co. pursuant to the Market Making Shelf
Registration.

     (d)  Notices of Claims, Etc. Promptly after receipt by an indemnified party
under subsection (a), (b) or (c) above of written notice of the commencement of
any action, such indemnified party shall, if a claim in respect thereof is to be
made against an indemnifying party pursuant to the indemnification provisions of
or contemplated by this Section 6, notify such indemnifying party in writing of
the commencement of such action; but the omission so to notify the indemnifying
party shall not relieve it from any liability which it may have to any
indemnified party otherwise than under the indemnification provisions of or
contemplated by Section 6(a), 6(b) or 6(c) hereof. In case any such action shall
be brought against any indemnified party and it shall notify an indemnifying
party of the commencement thereof, such indemnifying party shall be entitled to
participate therein and, to the extent that it shall wish, jointly with any
other indemnifying party similarly notified, to assume the defense thereof, with
counsel reasonably satisfactory to such indemnified party (who shall not, except
with the consent of the indemnified party, be counsel to the indemnifying
party), and, after notice from the indemnifying party to such indemnified party
of its election so to assume the defense thereof, such indemnifying party shall
not be liable to such indemnified party for any legal expenses of other counsel
or any other expenses, in each case subsequently incurred by such indemnified
party, in connection with the defense thereof other than reasonable costs of
investigation. No indemnifying party shall, without the written consent of the
indemnified party, effect the settlement or compromise of, or consent to the
entry of any judgment with respect to, any pending or threatened action or claim
in respect of which indemnification or contribution may be sought hereunder
(whether or not the indemnified party is an actual or potential party to such
action or claim) unless such settlement, compromise or judgment (i) includes an
unconditional release of the indemnified party from all liability arising out of
such action or claim and (ii) does not include a statement as to or an

                                       23
<PAGE>

admission of fault, culpability or a failure to act by or on behalf of any
indemnified party. No indemnifying party shall be liable for the cost of any
settlement effected by an indemnified party without the written consent of such
indemnifying party, which consent shall not be unreasonably withheld.

     (e)  Contribution. If for any reason the indemnification provisions
contemplated by Section 6(a), 6(b) or 6(c) hereof are unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses,
claims, damages or liabilities (or actions in respect thereof) referred to
therein, then each indemnifying party shall contribute to the amount paid or
payable by such indemnified party as a result of such losses, claims, damages or
liabilities (or actions in respect thereof) in such proportion as is appropriate
to reflect the relative fault of the indemnifying party and the indemnified
party in connection with the statements or omissions which resulted in such
losses, claims, damages or liabilities (or actions in respect thereof), as well
as any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified party shall be determined by reference to,
among other things, whether the untrue or alleged untrue statement of a material
fact or omission or alleged omission to state a material fact relates to
information supplied by such indemnifying party or by such indemnified party,
and the parties' relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. The parties hereto
agree that it would not be just and equitable if contributions pursuant to this
Section 6(e) were determined by pro rata allocation (even if the holders or any
agents or underwriters or all of them were treated as one entity for such
purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to in this Section 6(e). The amount paid or
payable by an indemnified party as a result of the losses, claims, damages, or
liabilities (or actions in respect thereof) referred to above shall be deemed to
include any legal or other fees or expenses reasonably incurred by such
indemnified party in connection with investigating or defending any such action
or claim. Notwithstanding the provisions of this Section 6(e), neither any
holder nor, in the case of a Market Making Shelf Registration relating to the
sale by Goldman, Sachs & Co. of Securities held by it at the time of the
Exchange Offer, Goldman, Sachs & Co. shall be required to contribute any amount
in excess of the amount by which the dollar amount of the proceeds received by
such holder from the sale of any Registrable Securities or Goldman, Sachs & Co.
from the sale of any such Securities (after deducting any fees, discounts and
commissions applicable thereto) exceeds the amount of any damages which such
holder or Goldman, Sachs & Co., as applicable, have otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission, and no underwriter shall be required to contribute any amount in
excess of the amount by which the total price at which the Registrable
Securities, Securities or Exchange Securities underwritten by it and distributed
to the public were offered to the public exceeds the amount of any damages which
such underwriter has otherwise been required to pay by reason of such untrue or
alleged untrue statement or omission or alleged omission. No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not
guilty of such fraudulent misrepresentation. The holders', Goldman, Sachs &
Co.'s and any underwriters' obligations in this Section 6(e) to contribute shall
be several in proportion to the principal amount of Registrable Securities
registered or underwritten, as the case may be, by them and not joint.

                                       24
<PAGE>

     (f)  The obligations of the Issuers under this Section 6 shall be in
addition to any liability which the Issuers may otherwise have and shall extend,
upon the same terms and conditions, to each officer, director and partner of
Goldman, Sachs & Co., each holder, agent and underwriter and each person, if
any, who controls Goldman, Sachs & Co., any holder, agent or underwriter within
the meaning of the Securities Act; and the obligations of the Goldman, Sachs &
Co., holders and any agents or underwriters contemplated by this Section 6 shall
be in addition to any liability which Goldman, Sachs & Co., the respective
holder, agent or underwriter may otherwise have and shall extend, upon the same
terms and conditions, to each officer and director of either of the Issuers
(including any person who, with his consent, is named in any registration
statement as about to become a director of the Issuers) and to each person, if
any, who controls the Issuers within the meaning of the Securities Act.

     7.   Underwritten Offerings.

     (a)  Selection of Underwriters. If any of the Registrable Securities
covered by the Shelf Registration are to be sold pursuant to an underwritten
offering, the managing underwriter or underwriters thereof shall be designated
by Electing Holders holding at least a majority in aggregate principal amount of
the Registrable Securities to be included in such offering, provided that such
designated managing underwriter or underwriters is or are reasonably acceptable
to the Issuers.

     (b)  Participation by Holders. Each holder of Registrable Securities hereby
agrees with each other such holder that no such holder may participate in any
underwritten offering hereunder unless such holder (i) agrees to sell such
holder's Registrable Securities on the basis provided in any underwriting
arrangements approved by the persons entitled hereunder to approve such
arrangements and (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements.

     8.   Rule 144.

          The Issuers covenant to the holders of Registrable Securities and
Goldman, Sachs & Co., that to the extent it shall be required to do so under the
Exchange Act, the Issuers shall timely file the reports required to be filed by
it under the Exchange Act or the Securities Act (including the reports under
Sections 13 and 15(d) of the Exchange Act referred to in subparagraph (c)(1) of
Rule 144 adopted by the Commission under the Securities Act) and the rules and
regulations adopted by the Commission thereunder, and shall take such further
action as any holder of Registrable Securities or Goldman, Sachs & Co., may
reasonably request, all to the extent required from time to time to enable such
holder to sell Registrable Securities or Goldman, Sachs & Co., to sell
Securities or Exchange Securities without registration under the Securities Act
within the limitations of the exemption provided by Rule 144 under the
Securities Act, as such Rule may be amended from time to time, or any similar or
successor rule or regulation hereafter adopted by the Commission. Upon the
request of any holder of Registrable Securities or Goldman, Sachs & Co. in
connection with that holder's or Goldman, Sachs & Co.'s sale pursuant to Rule
144, the Issuers shall deliver to such holder or Goldman, Sachs & Co. a written
statement as to whether it has complied with such requirements.

                                       25
<PAGE>

     9.   Miscellaneous.

     (a)  No Inconsistent Agreements. Each of the Issuers represents, warrants,
covenants and agrees that it has not granted, and shall not grant, registration
rights with respect to Registrable Securities, Securities or Exchange Securities
or any other securities which would be inconsistent with the terms contained in
this Exchange and Registration Rights Agreement.

     (b)  Specific Performance. The parties hereto acknowledge that there would
be no adequate remedy at law if the Issuers fail to perform any of their
obligations hereunder and that the Purchasers and the holders from time to time
of the Registrable Securities may be irreparably harmed by any such failure, and
accordingly agree that the Purchasers and such holders, in addition to any other
remedy to which they may be entitled at law or in equity, shall be entitled to
compel specific performance of the obligations of the Issuers under this
Exchange and Registration Rights Agreement in accordance with the terms and
conditions of this Exchange and Registration Rights Agreement, in any court of
the United States or any State thereof having jurisdiction.

     (c)  Notices. All notices, requests, claims, demands, waivers and other
communications hereunder shall be in writing and shall be deemed to have been
duly given when delivered by hand, if delivered personally or by courier, or
three days after being deposited in the mail (registered or certified mail,
postage prepaid, return receipt requested) as follows: If to the Issuers, to
them at P.O. Box 1167, 103 South Fifth Street, Mebane, NC 27302, and if to a
holder, to the address of such holder set forth in the security register or
other records of the Issuers, or to such other address as the Issuers or any
such holder may have furnished to the other in writing in accordance herewith,
except that notices of change of address shall be effective only upon receipt.

     (d)  Parties in Interest. All the terms and provisions of this Exchange and
Registration Rights Agreement shall be binding upon, shall inure to the benefit
of and shall be enforceable by the parties hereto and the holders from time to
time of the Registrable Securities and the respective successors and assigns of
the parties hereto and such holders. In the event that any transferee of any
holder of Registrable Securities shall acquire Registrable Securities, in any
manner, whether by gift, bequest, purchase, operation of law or otherwise, such
transferee shall, without any further writing or action of any kind, be deemed a
beneficiary hereof for all purposes and such Registrable Securities shall be
held subject to all of the terms of this Exchange and Registration Rights
Agreement, and by taking and holding such Registrable Securities such transferee
shall be entitled to receive the benefits of, and be conclusively deemed to have
agreed to be bound by all of the applicable terms and provisions of this
Exchange and Registration Rights Agreement. If the Issuers shall so request, any
such successor, assign or transferee shall agree in writing to acquire and hold
the Registrable Securities subject to all of the applicable terms hereof.

     (e)  Survival. The respective indemnities, agreements, representations,
warranties and each other provision set forth in this Exchange and Registration
Rights Agreement or made pursuant hereto shall remain in full force and effect
regardless of any investigation (or statement as to the results thereof) made by
or on behalf of Goldman, Sachs & Co. or any holder of Registrable Securities,
any director, officer or partner of Goldman, Sachs & Co. or such holder, any
agent or underwriter or any director, officer or partner thereof, or any

                                       26
<PAGE>

controlling person of any of the foregoing, and shall survive delivery of and
payment for the Securities pursuant to the Purchase Agreement and the transfer
and registration of Securities by such holder or Goldman, Sachs & Co. and the
consummation of an Exchange Offer.

     Anything herein to the contrary notwithstanding, the indemnity agreement of
the Issuers in Section 6(a) hereof, the representations and warranties in
Section 5(a) and Section 5(b) hereof and any representation or warranty as to
the accuracy of the Secondary Offer Registration Statement (or any preliminary,
final or summary prospectus contained therein) contained in any certificate
furnished by the Issuers pursuant to Section 3(d)(xvii) hereof, insofar as they
may constitute a basis for indemnification for liabilities (other than payment
by the Issuers of expenses incurred or paid in the successful defense of any
action, suit or proceeding) arising under the Securities Act, shall not extend
to the extent of any interest therein of a controlling person or partner of
Goldman, Sachs & Co. who is a director, officer or controlling person of the
Issuers when the Exchange Registration Statement or the Secondary Offer
Registration Statement has become effective, except in each case to the extent
that an interest of such character shall have been determined by a court of
appropriate jurisdiction as not against public policy as expressed in the
Securities Act. Unless in the opinion of counsel for the Issuers the matter has
been settled by controlling precedent, the Issuers will, if a claim for such
indemnification is asserted, submit to a court of appropriate jurisdiction the
question whether such interest is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such issue.

     (f)  Governing Law. This Exchange and Registration Rights Agreement shall
be governed by and construed in accordance with the laws of the State of New
York.

     (g)  Headings. The descriptive headings of the several Sections and
paragraphs of this Exchange and Registration Rights Agreement are inserted for
convenience only, do not constitute a part of this Exchange and Registration
Rights Agreement and shall not affect in any way the meaning or interpretation
of this Exchange and Registration Rights Agreement.

     (h)  Entire Agreement; Amendments. This Exchange and Registration Rights
Agreement and the other writings referred to herein (including the Indenture and
the form of Securities) or delivered pursuant hereto which form a part hereof
contain the entire understanding of the parties with respect to its subject
matter. This Exchange and Registration Rights Agreement supersedes all prior
agreements and understandings between the parties with respect to its subject
matter. This Exchange and Registration Rights Agreement may be amended and the
observance of any term of this Exchange and Registration Rights Agreement may be
waived (either generally or in a particular instance and either retroactively or
prospectively) only by a written instrument duly executed by the Issuers and the
holders of at least a majority in aggregate principal amount of the Registrable
Securities at the time outstanding and Goldman, Sachs & Co.; provided, however,
that any such amendment or waiver affecting solely provisions of this Exchange
and Registration Rights Agreement relating to the Market Making Registration may
be effected by a written instrument duly executed solely by the Company and
Goldman, Sachs & Co. Each holder of any Registrable Securities at the time or
thereafter outstanding shall be bound by any amendment or waiver effected
pursuant to this Section 9(h), whether or not any notice, writing or marking
indicating such amendment or waiver appears on such Registrable Securities or is
delivered to such holder.

                                       27
<PAGE>

          (i)  Inspection. For so long as this Exchange and Registration Rights
     Agreement shall be in effect, this Exchange and Registration Rights
     Agreement and a complete list of the names and addresses of all the holders
     of Registrable Securities and the address of Goldman, Sachs & Co. shall be
     made available for inspection and copying on any business day by Goldman,
     Sachs & Co. or any holder of Registrable Securities for proper purposes
     only (which shall include any purpose related to the rights of the holders
     of Registrable Securities under the Securities, the Indenture and this
     Agreement) at the offices of the Company at the address thereof set forth
     in Section 9(c) above and at the office of the Trustee under the Indenture.

          (j)  Counterparts. This agreement may be executed by the parties in
     counterparts, each of which shall be deemed to be an original, but all such
     respective counterparts shall together constitute one and the same
     instrument.

          If the foregoing is in accordance with your understanding, please sign
and return to us counterparts hereof, and upon the acceptance hereof by you, on
behalf of each of the Purchasers, this letter and such acceptance hereof shall
constitute a binding agreement between each of the Purchasers and the Issuers.
It is understood that your acceptance of this letter on behalf of each of the
Purchasers is pursuant to the authority set forth in a form of Agreement among
Purchasers, the form of which shall be submitted to the Issuers for examination
upon request, but without warranty on your part as to the authority of the
signers thereof.

                           [Signature page follows]

                                       28
<PAGE>

                                    Very truly yours,

                                    Madison River Capital, LLC

                                    By: /s/ J. Stephen Vanderwoude
                                       --------------------------------------
                                       Name:   J. Stephen Vanderwoude
                                       Title:  Chief Executive Officer

Accepted as of the date hereof:
Goldman, Sachs & Co.                Madison River Finance Corp.
Bear, Stearns & Co. Inc.
Chase Securities Inc.
Morgan Stanley & Co. Incorporated

                                    By: /s/ Paul H. Sunu
                                       --------------------------------------
                                       Name:   Paul H. Sunu
                                       Title:  Secretary & Treasurer

By: /s/ Goldman, Sachs & Co.
   -------------------------------
       (Goldman, Sachs & Co.)

                         Registration Rights Agreement
                                Signature Page

<PAGE>

                                                                       Exhibit A

                          Madison River Capital, LLC
                          Madison River Finance Corp.

                        INSTRUCTION TO DTC PARTICIPANTS
                        -------------------------------

                               (Date of Mailing)

                    URGENT - IMMEDIATE ATTENTION REQUESTED

                       DEADLINE FOR RESPONSE:  [DATE] *
                       ------------------------------

The Depository Trust Company ("DTC") has identified you as a DTC Participant
through which beneficial interests in Madison River Capital, LLC (the "Company")
and Madison River Finance Corp. ("Madison River Finance" and, together with the
Company, the "Issuers") 13 1/4% Senior Notes due 2010 (the "Securities") are
held.

The Issuers are in the process of registering the Securities under the
Securities Act of 1933 for resale by the beneficial owners thereof.  In order to
have their Securities included in the registration statement, beneficial owners
must complete and return the enclosed Notice of Registration Statement and
Selling Securityholder Questionnaire.

It is important that beneficial owners of the Securities receive a copy of the
------------------------------------------------------------------------------
enclosed materials as soon as possible as their rights to have the Securities
--------------------------------------
included in the registration statement depend upon their returning the Notice
and Questionnaire by _________ [28 days after mailing].  Please forward a copy
of the enclosed documents to each beneficial owner that holds interests in the
Securities through you.  If you require more copies of the enclosed materials or
have any questions pertaining to this matter, please contact the Issuers at P.O.
Box 1167, 103 South Fifth Street, Mebane, NC  27302.

________________
*Not less than 28 calendar days from date of mailing.

                                      A-1
<PAGE>

                          Madison River Capital, LLC

                          Madison River Finance Corp.

                       Notice of Registration Statement
                                      and
                     Selling Securityholder Questionnaire
                     ------------------------------------

                                    (Date)

Reference is hereby made to the Exchange and Registration Rights Agreement (the
"Exchange and Registration Rights Agreement") between Madison River Capital, LLC
(the "Company") and Madison River Finance Corp. ("Madison River Finance" and,
together with the Company, the "Issuers") and the Purchasers named therein.
Pursuant to the Exchange and Registration Rights Agreement, the Issuers have
filed with the United States Securities and Exchange Commission (the
"Commission") a registration statement on Form [__] (the "Shelf Registration
Statement") for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the "Securities Act"), of the Issuers' 13 1/4% Senior Notes
due 2010 (the "Securities").  A copy of the Exchange and Registration Rights
Agreement is attached hereto.  All capitalized terms not otherwise defined
herein shall have the meanings ascribed thereto in the Exchange and Registration
Rights Agreement.

Each beneficial owner of Registrable Securities (as defined below) is entitled
to have the Registrable Securities beneficially owned by it included in the
Shelf Registration Statement.  In order to have Registrable Securities included
in the Shelf Registration Statement, this Notice of Registration Statement and
Selling Securityholder Questionnaire ("Notice and Questionnaire") must be
completed, executed and delivered to the Issuers' counsel at the address set
forth herein for receipt ON OR BEFORE _________ [28 days after mailing].
Beneficial owners of Registrable Securities who do not complete, execute and
return this Notice and Questionnaire by such date (i) will not be named as
selling securityholders in the Shelf Registration Statement and (ii) may not use
the Prospectus forming a part thereof for resales of Registrable Securities.

Certain legal consequences arise from being named as a selling securityholder in
the Shelf Registration Statement and related Prospectus.  Accordingly, holders
and beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Shelf Registration Statement and
related Prospectus.

The term "Registrable Securities" is defined in the Exchange and Registration
          ----------------------
Rights Agreement.

                                      A-2
<PAGE>

                                   ELECTION

The undersigned holder (the "Selling Securityholder") of Registrable Securities
hereby elects to include in the Shelf Registration Statement the Registrable
Securities beneficially owned by it and listed below in Item (3).  The
undersigned, by signing and returning this Notice and Questionnaire, agrees to
be bound with respect to such Registrable Securities by the terms and conditions
of this Notice and Questionnaire and the Exchange and Registration Rights
Agreement, including, without limitation, Section 6 of the Exchange and
Registration Rights Agreement, as if the undersigned Selling Securityholder were
an original party thereto.

Upon any sale of Registrable Securities pursuant to the Shelf Registration
Statement, the Selling Securityholder will be required to deliver to the Issuers
and Trustee the Notice of Transfer set forth in Appendix A to the Prospectus and
as Exhibit B to the Exchange and Registration Rights Agreement.

The Selling Securityholder hereby provides the following information to the
Issuers and represents and warrants that such information is accurate and
complete:

                                      A-3
<PAGE>

                                 QUESTIONNAIRE

(1)  (a)  Full Legal Name of Selling Securityholder:

          _____________________________________________________________________
     (b)  Full Legal Name of Registered Holder (if not the same as in (a) above)
          of Registrable Securities Listed in Item (3) below:

          _____________________________________________________________________
     (c)  Full Legal Name of DTC Participant (if applicable and if not the same
          as (b) above) Through Which Registrable Securities Listed in Item (3)
          below are Held:

          _____________________________________________________________________

(2)       Address for Notices to Selling Securityholder:

                                 ______________________
                                 ______________________
                                 ______________________
          Telephone:             ______________________
          Fax:                   ______________________
          Contact Person:        ______________________

(3)       Beneficial Ownership of Securities:

          Except as set forth below in this Item (3), the undersigned does not
          beneficially own any Securities.

     (a)  Principal amount of Registrable Securities beneficially owned:

          _____________________________________________________________________

          CUSIP No(s). of such Registrable Securities:_________________________

     (b)  Principal amount of Securities other than Registrable Securities
          beneficially owned:

          _____________________________________________________________________

          CUSIP No(s). of such other Securities:_______________________________

     (c)  Principal amount of Registrable Securities which the undersigned
          wishes to be included in the Shelf Registration Statement:

          _____________________________________________________________________

          CUSIP No(s). of such Registrable Securities to be included in the
          Shelf Registration Statement:________________________________________

(4)       Beneficial Ownership of Other Securities of the Issuers:

          Except as set forth below in this Item (4), the undersigned Selling
          Securityholder is not the beneficial or registered owner of any other
          securities of the Issuers, other than the Securities listed above in
          Item (3).

          State any exceptions here:

                                      A-4
<PAGE>

(5)   Relationships with the Issuers:

      Except as set forth below, neither the Selling Securityholder nor any of
      its affiliates, officers, directors or principal equity holders (5% or
      more) has held any position or office or has had any other material
      relationship with the Issuers (or its predecessors or affiliates) during
      the past three years.

      State any exceptions here:

(6)   Plan of Distribution:

      Except as set forth below, the undersigned Selling Securityholder intends
      to distribute the Registrable Securities listed above in Item (3) only as
      follows (if at all):  Such Registrable Securities may be sold from time to
      time directly by the undersigned Selling Securityholder or, alternatively,
      through underwriters, broker-dealers or agents.  Such Registrable
      Securities may be sold in one or more transactions at fixed prices, at
      prevailing market prices at the time of sale, at varying prices determined
      at the time of sale, or at negotiated prices.  Such sales may be effected
      in transactions (which may involve crosses or block transactions) (i) on
      any national securities exchange or quotation service on which the
      Registered Securities may be listed or quoted at the time of sale, (ii) in
      the over-the-counter market, (iii) in transactions otherwise than on such
      exchanges or services or in the over-the-counter market, or (iv) through
      the writing of options.  In connection with sales of the Registrable
      Securities or otherwise, the Selling Securityholder may enter into hedging
      transactions with broker-dealers, which may in turn engage in short sales
      of the Registrable Securities in the course of hedging the positions they
      assume.  The Selling Securityholder may also sell Registrable Securities
      short and deliver Registrable Securities to close out such short
      positions, or loan or pledge Registrable Securities to broker-dealers that
      in turn may sell such securities.

      State any exceptions here:

By signing below, the Selling Securityholder acknowledges that it understands
its obligation to comply, and agrees that it will comply, with the provisions of
the Exchange Act and the rules and regulations thereunder, particularly
Regulation M.

In the event that the Selling Securityholder transfers all or any portion of the
Registrable Securities listed in Item (3) above after the date on which such
information is provided to the Issuers, the Selling Securityholder agrees to
notify the transferee(s) at the time of the transfer of its rights and
obligations under this Notice and Questionnaire and the Exchange and
Registration Rights Agreement.

By signing below, the Selling Securityholder consents to the disclosure of the
information contained herein in its answers to Items (1) through (6) above and
the inclusion of such information in the Shelf Registration Statement and
related Prospectus.  The Selling Securityholder understands that such
information will be relied upon by the Issuers in connection with the
preparation of the Shelf Registration Statement and related Prospectus.

                                      A-5
<PAGE>

In accordance with the Selling Securityholder's obligation under Section 3(d) of
the Exchange and Registration Rights Agreement to provide such information as
may be required by law for inclusion in the Shelf Registration Statement, the
Selling Securityholder agrees to promptly notify the Issuers of any inaccuracies
or changes in the information provided herein which may occur subsequent to the
date hereof at any time while the Shelf Registration Statement remains in
effect.  All notices hereunder and pursuant to the Exchange and Registration
Rights Agreement shall be made in writing, by hand-delivery, first-class mail,
or air courier guaranteeing overnight delivery as follows:

      (i)  To the Issuers:

                                 Madison River Capital, LLC
                                 Madison River Finance Corp.
                                 c/o Madison River Telephone Company, LLC
                                 103 South Fifth Street
                                 Mebane, NC 27302
                                 Attention: General Counsel

      (ii)  With a copy to:

                                 Skadden, Arps, Slate, Meagher & Flom
                                 333 W. Wacker Dr., Suite 2100
                                 Chicago, IL 60606
                                 Attention: Gary P. Cullen, Esq.

Once this Notice and Questionnaire is executed by the Selling Securityholder and
received by the Issuers' counsel, the terms of this Notice and Questionnaire,
and the representations and warranties contained herein, shall be binding on,
shall inure to the benefit of and shall be enforceable by the respective
successors, heirs, personal representatives, and assigns of the Issuers and the
Selling Securityholder (with respect to the Registrable Securities beneficially
owned by such Selling Securityholder and listed in Item (3) above.  This
Agreement shall be governed in all respects by the laws of the State of New
York.

                                      A-6
<PAGE>

IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this
Notice and Questionnaire to be executed and delivered either in person or by its
duly authorized agent.

Dated: _________________

               ________________________________________________________________
               Selling Securityholder
               (Print/type full legal name of beneficial owner of Registrable
               Securities)

               By: ____________________________________________________________
               Name:
               Title:

PLEASE RETURN THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE FOR RECEIPT ON
OR BEFORE _________ [28 DAYS AFTER MAILING].  TO THE COMPANY'S COUNSEL AT:

                       Skadden, Arps, Slate, Meagher & Flom
                       333 W. Wacker Dr., Suite 2100
                       Chicago, IL 60606
                       Attention: Gary P. Cullen, Esq.

                                      A-7
<PAGE>

                                                                       Exhibit B

             NOTICE OF TRANSFER PURSUANT TO REGISTRATION STATEMENT

Norwest Bank Minnesota, National Association
Madison River Capital, LLC
Madison River Finance Corp.
c/o Norwest Bank Minnesota, National Association
Corporate Trust Services
Sixth and Marquette N9303-120
Minneapolis, MN 55479

Attention:  Trust Officer

     Re:  Madison River Capital, LLC and
     Madison River Finance Corp. (the "Issuers")
     13 1/4 Senior Notes due 2010

Dear Sirs:

Please be advised that ___________ has transferred $________ aggregate principal
amount of the above-referenced Notes pursuant to an effective Registration
Statement on Form [______] (File No. 333-_________) filed by the Issuers.

We hereby certify that the prospectus delivery requirements, if any, of the
Securities Act of 1933, as amended, have been satisfied and that the above-named
beneficial owner of the Notes is named as a "Selling Holder" in the Prospectus
dated [________] or in supplements thereto, and that the aggregate principal
amount of the Notes transferred are the Notes listed in such Prospectus opposite
such owner's name.

Dated:

                                        Very truly yours,

                                              ____________________________
                                              (Name)

                                        By:   ____________________________
                                              (Authorized Signature)<PAGE>

                                                                    EXHIBIT 10.1

                   CONTRIBUTION AND STOCK PURCHASE AGREEMENT

                             BY, BETWEEN AND AMONG

                     MADISON RIVER TELEPHONE COMPANY, LLC,

                         COASTAL COMMUNICATIONS, LLC,

                           COASTAL UTILITIES, INC.,

                               DANIEL M. BRYANT,

                                G. ALLAN BRYANT

                                      AND

                       THE MICHAEL E. BRYANT LIFE TRUST

                               November 23, 1999
<PAGE>

                   CONTRIBUTION AND STOCK PURCHASE AGREEMENT

     This Contribution and Stock Purchase Agreement is entered into this of
November 1999, by and among Madison River Telephone Company, LLC, a Delaware
limited liability company ("MRTC") and Coastal Communications, LLC, a Delaware
limited liability company (collectively, the "Buyer"); Daniel M. Bryant, G.
Allan Bryant and The Michael E. Bryant Life Trust (collectively, the "Sellers");
and Coastal Utilities, Inc., a Georgia corporation (the "Company"). The Buyer
and the Sellers are referred to collectively herein as the "Parties."

     WHEREAS, the Sellers in the aggregate own all of the outstanding capital
stock of the Company.

     WHEREAS, the Company is engaged in the operation of a local exchange
carrier telephone company providing comprehensive telecommunications services to
its customers (the "Business")

     WHEREAS, this Agreement contemplates a transaction in which the Buyer will
purchase from the Sellers, and the Sellers will sell to the Buyer, all of the
outstanding capital stock of the Company on the terms and conditions set forth
herein.

     NOW, THEREFORE, in consideration of the premises and the mutual promises
herein made, and in consideration of the representations, warranties, and
covenants herein contained, the Parties agree as follows.

     1.   Definitions.
          ------------

     Capitalized terms contained in this Agreement and not otherwise defined by
their context, are defined in Exhibit A, attached hereto and incorporated by
this reference.

     2.   Contribution and Sale of Company Shares.
          ----------------------------------------

     (a)  Basic Transaction.  On and subject to the terms and conditions of this
          -----------------
Agreement, the Buyer agrees to acquire from each of the Sellers, and each of the
Sellers agrees to transfer to the Buyer, all of his or its Company Shares for
the consideration specified below in this Section 2.

     (b)  Consideration.  Subject to the adjustments set forth in Section 2(e),
          -------------
Section 6(e) and Section 6(f) below, the Buyer agrees to pay and deliver to the
Sellers at the Closing (i) One Hundred Thirty Million Dollars ($130,000,000)
less Long Term Debt by wire transfer or delivery of other immediately available
funds (the "Purchase Price") and (ii) the Coastal Communications Interests
(collectively, the "Consideration"). The Consideration shall be allocated among
the Sellers in proportion to their respective holdings of Company Shares as set
forth in Section 4(b) of the Disclosure Schedule.

     (c)  The Closing.  The closing of the transactions contemplated by this
          -----------
Agreement (the "Closing") shall take place at the offices of Ratcliffe, Smith &
Grinstead, P.C., located at
<PAGE>

103 North Main Street, Hinesville, GA. 31313, commencing at 9:00 a.m. local time
on the first business day following the satisfaction or waiver of all conditions
to the obligations of the Parties to consummate the transactions contemplated
hereby (other than conditions with respect to actions the respective Parties
will take at the Closing itself) or such other date as the Buyer and the Sellers
may mutually determine (the "Closing Date"); provided, however, that the Closing
Date shall be no later than March 31, 2000.

     (d)  Deliveries at the Closing.  At the Closing, (i) Sellers will
          -------------------------
contribute, transfer and deliver to Buyer the various certificates, instruments,
and documents referred to in Section 7(a) below, (ii) Buyer will deliver to
Sellers the various certificates, instruments, and documents referred to in
Section 7(b) below, (iii) each of the Sellers will contribute, transfer and
deliver to Buyer stock certificates representing all of his or its Company
Shares, endorsed in blank or accompanied by duly executed assignment documents,
and (iv) Buyer will deliver to Sellers the consideration specified in Section
2(b) above.

     (e)  Adjustments to Consideration.
          ----------------------------

          (i) Within thirty (30) days following the Closing Date, Buyer's
     accountants shall have reviewed the financial statements, books and records
     of the Company and its Subsidiaries and shall have delivered a written
     report of the results of such review to Sellers (the "Final Closing Date
     Report"). The calculations of Buyer made pursuant to this Section shall be
     made in accordance with GAAP. The Purchase Price is based upon the
     following covenants of the Company and the Sellers: The Company shall at
     the Closing Date have (A) a minimum of Five Million Dollars ($5,000,000) in
     readily available cash or cash equivalents (neither of which is restricted
     or dedicated for payment of a Company obligation); (B) a current ratio of
     1.2; and (C) a minimum Net Worth of Ten Million Dollars ($10,000,000),
     provided that the Illuminet stock presently held by the Company shall be
     valued at the lesser of cost or fair market value for these purposes. The
     Consideration shall be reduced by an amount equal to the sum of the
     following: (i) the amount that cash is less than Five Million Dollars
     ($5,000,000); (ii) the amount equal to the current assets needed to
     increase the numerator of the current ratio to achieve the minimum current
     ratio and (iii) the amount that Net Worth is less than Ten Million Dollars
     ($10,000,000). Any reduction in consideration shall be made in the amount
     of Consideration delivered at Closing based upon the parties good faith
     estimate of the actual amounts required to be delivered under the
     requirements of Section 2(e)(1)(A), Section 2(e)(ii)(B) and Section
     2(e)(iii)(C) above. If, based upon the Final Closing Date Report additional
     adjustments in the Consideration are required, Sellers shall each reimburse
     Buyer their pro rata portion of the amount of the Purchase Price adjustment
     by (i) wire transfer of immediately available funds to the account
     specified by Buyer within five (5) business days after the date on which
     the Final Closing Date Report is deemed final in accordance with this
     Section 2(e); or (ii) a reduction of the amount of the CCL Class A Member
     Interests received by Sellers. Buyer may stipulate the method of
     reimbursement.

          (ii) The Purchase Price shall be increased by an amount equal to the
     amount that cash and cash equivalents is more than Five Million Dollars
     ($5,000,000), provided

                                       2
<PAGE>

     that the purchase price increase shall be limited to an amount such that
     when the purchase price increase is deemed subtracted from cash and cash
     equivalents, as calculated on the Final Closing Date Report, the financial
     conditions as set forth in (e)(i) above all shall still be satisfied. Buyer
     shall pay Sellers any such increase within five (5) business days after the
     date in which the Final Closing Date Report is deemed final in accordance
     with Section 2(e).

          (iii)  Not later than ten (10) business days following the delivery of
     the Final Closing Date Report and the calculation of the Purchase Price
     adjustment, Sellers may furnish Buyer with written notification of any
     dispute concerning any items shown thereon or omitted therefrom together
     with a detailed explanation in support of Sellers' position in respect
     thereof. Sellers and Buyer shall consult to resolve any such dispute for a
     period of fifteen (15) business days following the notification thereof. If
     such fifteen (15) business day consultation period expires and the dispute
     has not been resolved, the matter shall be referred to a nationally
     recognized Big 5 independent public accounting firm mutually agreed upon by
     Sellers and Buyer (the "Accountants"), which shall resolve the dispute and
     shall render its decision (together with a brief explanation of the basis
     therefor) to Buyer and Sellers not later than twenty (20) business days
     following submission of the dispute to it; provided, however, that if Buyer
     and Sellers are unable to mutually agree upon a nationally recognized Big 5
     independent public accounting firm, then Buyer and Sellers shall each
     choose a nationally recognized Big 5 independent public accounting firm and
     those firms shall appoint a third nationally recognized Big 5 independent
     public accounting firm to act as the Accountants. The adjustments to the
     Purchase Price shall be made in the required manner within five (5)
     business days after the delivery of a copy of such decision to Sellers and
     Buyer. The fees and expenses of the Accountants shall be shared equally by
     Sellers and Buyer. The Final Closing Date Report and the calculation of any
     Purchase Price adjustments (to the extent not disputed within the specified
     period by Sellers), any mutually agreed written settlement of any such
     dispute concerning the Final Closing Date Report or the calculation of any
     Purchase Price adjustments and any determination of disputed items by the
     Accountants shall be final, conclusive and binding on the Parties hereto
     absent manifest error.

          (v)    At the later of ninety (90) days after all restrictions lapse
     on Illuminet stock or November 1, 2000 (the "Valuation Date"), Buyer shall
     pay as additional purchase price fifty percent (50%) of the deemed gain on
     Illuminet stock. Gain shall be calculated as the value of Illuminet stock
     less (1) value ascribed to Illuminet stock in (e)(i) above and (2) federal
     and state income taxes payable on the deemed sale. Illuminet value shall be
     determined by the actual sale of Illuminet stock within 30 days of the
     Valuation Date or, in case of a deemed sale, the average of the ten (10)
     most recent closing prices of Illuminet stock on or prior to the Valuation
     Date.

          (vi)   The Purchase Price shall be adjusted for split dollar insurance
     in accordance with Section 5(k) hereof.

                                       3
<PAGE>

     3.   Representations and Warranties Concerning the Transaction the
          -------------------------------------------------------------
Transaction.
-----------

     (a)  Representations and Warranties of the Sellers.  Each of the Sellers
          ---------------------------------------------
severally represents and warrants to the Buyer that the statements contained in
this Section 3(a) are correct and complete as of the date of this Agreement and
will be correct and complete as of the Closing Date (as though made then and as
though the Closing Date were substituted for the date of this Agreement
throughout this Section 3(a)) with respect to himself or itself, except as set
forth in the Disclosure Schedule attached hereto.

          (i)   Organization of Certain Sellers. If the Seller is a trust, the
                --------------------------------
     Seller is validly existing under the trust and fiduciary laws of the State
     of Georgia.

          (ii)  Authorization of Transaction.  Each Seller has full power and
                ----------------------------
     authority (including, if the Seller is a corporation, full corporate power
     and authority) to execute and deliver this Agreement and to perform his or
     its obligations hereunder. This Agreement constitutes the valid and legally
     binding obligation of each Seller, enforceable in accordance with its terms
     and conditions. Except as set forth in Schedule 3(a)(ii), (and each such
     exception shall be satisfied prior to the Closing Date), each Seller need
     not give any notice to, make any filing with, or obtain any authorization,
     consent, or approval of any government or governmental agency in order to
     consummate the transactions contemplated by this Agreement.

          (iii) Noncontravention.  Neither the execution and the delivery of
                ----------------
     this Agreement, nor the consummation of the transactions contemplated
     hereby, will (A) violate any constitution, statute, regulation, rule,
     injunction, judgment, order, decree, ruling, charge, or other restriction
     of any government, governmental agency, or court to which the Seller is
     subject or, if the Seller is a trust, any provision of its trust agreement
     or (B) except as set forth in Schedule 3(a)(iii) (and each such exception
     shall be satisfied prior to the Closing Date) conflict with, result in a
     breach of, constitute a default under, result in the acceleration of,
     create in any party the right to accelerate, terminate, modify, or cancel,
     or require any notice under any agreement, contract, lease, license,
     instrument, or other arrangement to which the Seller is a party or by which
     he or it is bound or to which any of his or its assets is subject.

          (iv)  Brokers' Fees.  No Seller has any Liability or obligation to pay
                -------------
     any fees or commissions to any broker, finder, or agent with respect to the
     transactions contemplated by this Agreement for which the Buyer could
     become liable or obligated.

          (v)  Company Shares. As of the date hereof and as of the Closing, each
               --------------
     Seller holds of record and owns beneficially the number of Company Shares
     set forth next to his or its name in Section 4(b) of the Disclosure
     Schedule, free and clear of any restrictions on transfer (other than any
     restrictions under the Securities Act and state securities laws), Taxes,
     Security Interests, options, warrants, purchase rights, contracts,
     commitments, equities, claims, and demands. Except as set forth in Schedule
     3(a)(v), (each such exception to be removed prior to the Closing Date). No
     Seller is a party to any option,

                                       4
<PAGE>

     warrant, purchase right, or other contract or commitment that could require
     such Seller to sell, transfer, or otherwise dispose of any capital stock of
     the Company (other than this Agreement). No Seller is a party to any voting
     trust, proxy, or other agreement or Understanding with respect to the
     voting of any capital stock of the Company. Upon the consummation of the
     transaction contemplated hereby, Buyer will acquire title to the Company
     Shares, free and clear of all restrictions on transfer (other than any
     restrictions under the Securities Act and state securities laws), Taxes,
     Security Interests, options, warrants, purchase rights, contracts,
     commitments, equities, claims, and demands.

          (vi)  Each Seller (i) understands that the Coastal Communications
     Interests have not been, and will not be, registered under the Securities
     Act, or any state securities laws, and are being offered and transferred in
     reliance upon federal and state exemptions for transactions not involving
     any public offering, (ii) is acquiring the Coastal Communications Interests
     solely for its own account for investment purposes, and not with a view to
     the distribution thereof, (iii) is a sophisticated investor with knowledge
     and experience in business and financial matters, (iv) has received
     information concerning the Buyer and has had the opportunity to obtain
     additional information as desired in order to evaluate the merits and the
     risks inherent in holding the Coastal Communications Interests, (v) is able
     to bear the economic risk and lack of liquidity inherent in holding the
     Coastal Communications Interests, and (vi) is an Accredited Investor as
     defined and set forth in Regulation D promulgated under the Securities Act.

          (b)   Representations and Warranties of the Buyer. The Buyer
                -------------------------------------------
     represents and warrants to Sellers that the statements contained in this
     Section 3(b) are correct and complete as of the date of this Agreement and
     will be correct and complete as of the Closing Date (as though made then
     and as though the Closing Date were substituted for the date of this
     Agreement throughout this Section 3(b).

          (i)   Organization of the Buyer. The Buyer is a limited liability
                ---------------------------
     company duly organized, validly existing, and in good standing under the
     laws of Delaware.

          (ii)  Authorization of Transaction. The Buyer has full power and
                ------------------------------
     authority (including full corporate power and authority) to execute and
     deliver this Agreement and to perform its obligations hereunder. This
     Agreement constitutes the valid and legally binding obligation of the
     Buyer, enforceable in accordance with its terms and conditions.  Except as
     provided herein, Buyer need not give any notice to, make any filing with,
     or obtain any authorization, consent, or approval of any government or
     governmental agency in order to consummate the transactions contemplated by
     this Agreement.

          (iii) Noncontravention.  Neither the execution and the delivery of
                ----------------
     this Agreement, nor the consummation of the transactions contemplated
     hereby, will (A) violate any constitution, statute, regulation, rule,
     injunction, judgment, order, decree, ruling, charge, or other restriction
     of any government, governmental agency, or court to which the Buyer is
     subject or any provision of its Certificate of Formation or Limited
     Liability Company Agreement (B) conflict with, result in a breach of,
     constitute a default under, result in the acceleration of, create in any
     party the right to accelerate, terminate,

                                       5
<PAGE>

     modify, or cancel, or require any notice under any agreement, contract,
     lease, license, instrument, or other arrangement to which the Buyer is a
     party or by which it is bound or to which any of its assets is subject.

          (iv)  Brokers' Fees.  The Buyer has no Liability or obligation to pay
                -------------
     any fees or commissions to any broker, finder, or agent with respect to the
     transactions contemplated by this Agreement for which any Seller could
     become liable or obligated.

          (v)   Investment. The Buyer is not acquiring the Company Shares with a
                ----------
     view to or for sale in connection with any distribution thereof within the
     meaning of the Securities Act.

     4.   Representations and Warranties Concerning the Company and Its
          -------------------------------------------------------------
Subsidiaries.
-------------

     The Sellers jointly and severally represent and warrant to Buyer that the
statements contained in this Section 4 are correct and complete as of the date
of this Agreement and will be correct and complete as of the Closing Date (as
though made then and as though the Closing Date were substituted for the date of
this Agreement throughout this Section 4), except as set forth in the disclosure
schedule delivered by Sellers to Buyer within ten (10) days of the date hereof,
initialed by the Parties and subject to the provisions of Section 5(L) attached
hereto as Exhibit B (the "Disclosure Schedule"). Nothing in the Disclosure
Schedule shall be deemed adequate to disclose an exception to a representation
or warranty made herein, however, unless the Disclosure Schedule identifies the
exception with particularity and describes the relevant facts in sufficient
detail to accurately apprise Buyer of the true nature of the circumstance or
situation. Without limiting the generality of the foregoing, the mere listing
(or inclusion of a copy) of a document or other item shall not be deemed
adequate to disclose an exception to a representation or warranty made herein
(unless the representation or warranty has to do with the existence of the
document or other item itself). The Disclosure Schedule will be arranged in
paragraphs corresponding to the lettered and numbered paragraphs contained in
this Section 4.

     (a)  Organization, Qualification, and Corporate Power.  Each of the Company
          ------------------------------------------------
and its Subsidiaries is a corporation duly organized, validly existing, and in
good standing under the laws of the jurisdiction of its incorporation. Each of
the Company and its Subsidiaries is duly authorized to conduct business and is
in good standing under the laws of each jurisdiction where such qualification is
required. Each of the Company and its Subsidiaries has full corporate power and
authority and all licenses, permits, operating authority, regulatory approvals
and authorizations necessary to carry on the Businesses in which it is engaged
and in which it presently proposes to engage and to own and use the properties
owned and used by it. Section 4(a) of the Disclosure Schedule lists the
directors and officers of each of the Company and its Subsidiaries. The Sellers
have delivered to Buyer correct and complete copies of the charter and bylaws of
each of the Company and its Subsidiaries (as amended to date). The minute books
(containing the records of meetings of the stockholders, the board of directors,
and any committees of the board of directors), the stock certificate books, and
the stock record books of each of the Company and its Subsidiaries are correct
and complete. None of the Company and its Subsidiaries is in default under or in
violation of any provision of its charter or bylaws.

                                       6
<PAGE>

     (b)  Capitalization.  The entire authorized capital stock of the Company
          --------------
consists of: (i) 300,000 shares of Class A Common Stock, par value-$10.00, of
which 52,860 shares are issued and outstanding, (ii) 900,000 shares of Class B
Common Stock, par value $10.00, of which 222,012 shares are issued and
outstanding; (iii) 50,000 shares of Class A Preferred Stock, par value $100.00,
of which 10,572 shares are issued and outstanding; and (iv) 20,000 shares of
Class B Preferred Stock, par value $100.00, of which 4,405 shares are issued and
outstanding.  All of the issued and outstanding Company Shares have been duly
authorized, are validly issued, fully paid, and nonassessable, and are held of
record by the respective Sellers as set forth in Section 4(b) of the Disclosure
Schedule. There are no outstanding or authorized options, warrants, purchase
rights, subscription rights, conversion rights, exchange rights, or other
contracts or commitments that could require the Company to issue, sell, or
otherwise cause to become outstanding any of its capital stock. There are no
outstanding or authorized stock appreciation, phantom stock, profit
participation, or similar rights with respect to the Company.  There are no
voting trusts, proxies, or other agreements or understandings with respect to
the voting of the capital stock of the Company.

     (c)  Noncontravention.  Neither the execution and the delivery of this
          ----------------
Agreement, nor the consummation of the transactions contemplated hereby, will
(i) violate any constitution, statute, regulation, rule, injunction, judgment,
order, decree, ruling, charge, or other restriction of any government,
governmental agency, or court to which any of the Company and its Subsidiaries
is subject or any provision of the charter or bylaws of any of the Company and
its Subsidiaries or (ii) conflict with, result in a breach of, constitute a
default under, result in the acceleration of, create in any party the right to
accelerate, terminate, modify, or cancel, or require any notice under any
agreement, contract, lease, license, instrument, or other arrangement to which
any of the Company and its Subsidiaries is a party or by which it is bound or to
which any of its assets is subject (or result in the imposition of any Security
Interest upon any of its assets). Except as set forth in schedule 4(c), (each
such exception to be removed prior to the Closing Date), none of the Company and
its Subsidiaries must give any notice to, make any filing with, or obtain any
authorization, consent, or approval of any government or governmental agency in
order for the Parties to consummate the transactions contemplated by this
Agreement.

     (d)  Brokers' Fees.  None of the Company and its Subsidiaries has any
          -------------
Liability or obligation to pay any fees or commissions to any broker, finder, or
agent with respect to the transactions contemplated by this Agreement.

     (e)  Title to Assets.  The Company's and its Subsidiaries' assets include
          ---------------
all of the assets, properties and rights of every type and description, real,
personal and mixed, tangible and intangible, that are currently used in the
conduct of the Company's and its Subsidiaries' Business. The Company and its
Subsidiaries have good and marketable title to, or a valid leasehold interest
in, the properties and assets used by them, located on their premises, or shown
on the Most Recent Balance Sheet or acquired after the date thereof, free and
clear of all Security Interests, except as set forth in Section 4(e) of the
Disclosure Schedule.

     (f)  Subsidiaries.  Section 4(f) of the Disclosure Schedule sets forth for
          ------------
each Subsidiary of the Company (i) its name and jurisdiction of incorporation,
(ii) the number of

                                       7
<PAGE>

shares of authorized capital stock of each class of its capital stock, (iii) the
number of issued and outstanding shares of each class of its capital stock, the
names of the holders thereof, and the number of shares held by each such holder,
and (iv) the number of shares of its capital stock held in treasury. All of the
issued and outstanding shares of capital stock of -each Subsidiary of the
Company have been duly authorized and are validly issued, fully paid, and
nonassessable. The Company holds of record and owns beneficially all of the
outstanding shares of each Subsidiary of the Company, free and clear of any
restrictions on transfer (other than restrictions under the Securities Act and
state securities laws), Taxes, Security Interests, options, warrants, purchase
rights, contracts, commitments, equities, claims, and demands. There are no
outstanding or authorized options, warrants, purchase rights, subscription
rights, conversion rights, exchange rights, or other contracts or commitments
that could require any of the Company and its Subsidiaries to sell, transfer, or
otherwise dispose of any capital stock of any of its Subsidiaries or that could
require any Subsidiary of the Company to issue, sell, or otherwise cause to
become outstanding any of its own capital stock. There are no outstanding stock
appreciation, phantom stock, profit participation, or similar rights with
respect to any Subsidiary of the Company. There are no voting trusts, proxies,
or other agreements or understandings with respect to the voting of any capital
stock of any Subsidiary of the Company. Except as set forth in Section 4(f),
none of the Company and its Subsidiaries controls directly or indirectly or has
any direct or indirect equity participation in any corporation, partnership,
trust, or other business association which is not a Subsidiary of the Company.

     (g)  Financial Statements.  Attached hereto as Exhibit B are the following
          --------------------
financial statements (collectively the "Financial Statements"): (i) audited
consolidated and unaudited consolidating balance sheets and statements of
income, changes in stockholders' equity, and cash flow as of and for the fiscal
years ended December 31, 1997, and December 31, 1998 (the "Most Recent Fiscal
Year End") for the Company and its Subsidiaries; and (ii) unaudited balance
sheets and statement of income (die "Most Recent Financial Statements") as of
and for the nine months ended September 30, 1999 (the "Most Recent Fiscal Month
End") for the Company and its Subsidiaries. The Financial Statements referenced
in 4(g)(i) above (including the notes thereto) have been prepared from the books
and records of the Company and its Subsidiaries in accordance with GAAP applied
on a consistent basis throughout the periods covered thereby, present fairly the
financial condition of the Company and its Subsidiaries as of such dates and the
results of operations of the Company and its Subsidiaries for such periods, are
correct and complete, and are consistent with the books and records of the
Company and its Subsidiaries (which books and records are correct and complete).

     (h)  Events Subsequent to Most Recent Fiscal Year End.  Since the Most
          ------------------------------------------------
Recent Fiscal Year End, there has not been any material adverse change in the
Business, financial condition, operations, results of operations, cash flows or
future prospects of any of the Company and its Subsidiaries, but excluding any
change in the United States general economic conditions.  Without limiting the
generality of the foregoing, since that date, and except as set forth in Section
4(h) of the Disclosure Schedule:

          (i)   none of the Company and its Subsidiaries has sold, leased,
     transferred, or assigned any of its assets, tangible or intangible, other
     than for a fair consideration in the Ordinary Course of Business;

                                       8
<PAGE>

          (ii)   none of the Company and its Subsidiaries has entered into any
     agreement, contract, lease, or license (or series of related agreements,
     contracts, leases, and licenses) either involving more than $50,000 or
     outside the Ordinary Course of Business;

          (iii)  no party (including any of the Company and its Subsidiaries)
     has accelerated, terminated, modified, or cancelled any agreement,
     contract, lease, or license (or series of related agreements, contracts,
     leases, and licenses) involving more than $50,000 to which any of the
     Company and its Subsidiaries is a party or by which any of them is bound;

          (iv)   none of the Company and its Subsidiaries has imposed any
     Security Interest upon any of its assets, tangible or intangible;

          (v)    none of the Company and its Subsidiaries has made any capital
     expenditure (or series of related capital expenditures) either involving
     more than $50,000 or outside the Ordinary Course of Business;

          (vi)   none of the Company and its Subsidiaries has made any capital
     investment in, any loan to, or any acquisition of the securities or assets
     of, any other Person (or series of related capital investments, loans, and
     acquisitions) either involving more than $50,000 or outside the Ordinary
     Course of Business;

          (vii)  none of the Company and its Subsidiaries has issued any note,
     bond, or other debt security or created, incurred, assumed, or guaranteed
     any indebtedness for borrowed money or capitalized lease obligation either
     involving more than $50,000 singly or $250,000 in the aggregate;

          (viii) none of the Company and its Subsidiaries has delayed or
     postponed the payment of accounts payable and other Liabilities outside the
     Ordinary Course of Business;

          (ix)   none of the Company and its Subsidiaries has cancelled,
     compromised, waived, or released any right or claim (or series of related
     rights and claims) either involving more than $50,000 or outside the
     Ordinary Course of Business;

          (x)    none of the Company and its Subsidiaries has granted any
     license or sublicense of any rights under or with respect to any
     Intellectual Property;

          (xi)   there has been no change made or authorized in the charter or
     bylaws of any of the Company and its Subsidiaries;

          (xii)  none of the Company and its Subsidiaries has issued, sold, or
     otherwise disposed of any of its capital stock, or granted any options,
     warrants, or other rights to purchase or obtain (including upon conversion,
     exchange, or exercise) any of its capital stock;

                                       9
<PAGE>

          (xiii)  none of the Company and its Subsidiaries has declared, set
     aside, or paid any dividend or made any distribution with respect to its
     capital stock (whether in cash or in kind) or redeemed, purchased, or
     otherwise acquired any of its capital stock;

          (xiv)   none of the Company and its Subsidiaries has made any loan to,
     or entered into any other transaction with, any of its directors, officers,
     and employees outside the Ordinary Course of Business;

          (xv)    one of the Company and its Subsidiaries has granted any
     increase in the base compensation of any of its directors, officers, and
     employees outside the Ordinary Course of Business;

          (xvi)   none of the Company and its Subsidiaries has adopted, amended,
     modified, or terminated any bonus, profit-sharing, incentive, severance, or
     other plan, contract, or commitment for the benefit of any of its
     directors, officers, and employees (or taken any such action with respect
     to any other Employee Benefit Plan);

          (xvii)  none of the Company and its Subsidiaries has made or pledged
     to make any charitable or other capital contribution outside the Ordinary
     Course of Business; and

          (xviii) there has not been any other material occurrence, event,
     incident, action, failure to act, or transaction outside the Ordinary
     Course of Business involving any of the Company and its Subsidiaries.

     (i)  Undisclosed Liabilities.  None of the Company and its Subsidiaries has
          -----------------------
any Liability (and to the Knowledge of Sellers there is no Basis for any present
or future action, suit, proceeding, hearing, investigation, charge, complaint,
claim, or demand against any of them giving rise to any Liability), except for
(i) Liabilities set forth on the face of the Most Recent Fiscal Year End (rather
than in any notes thereto) and (ii) Liabilities which are current liabilities of
the Company and which have arisen after the Most Recent Fiscal Year End in the
Ordinary Course of Business (none of which results from, arises out of, relates
to, is in the nature of, or was caused by any breach of contract, breach of
warranty, tort, infringement, or violation of law).

     (j)  Legal Compliance.  Each of the Company, its Subsidiaries, and their
          ----------------
respective predecessors and Affiliates has complied with all applicable laws
(including rules, regulations, codes, plans, injunctions, judgments, orders,
decrees, rulings, and charges thereunder) of federal, state, local, and foreign
governments (and all agencies thereof, including, but not limited to, the FCC
and the Georgia PSC), and no action, suit, proceeding, hearing, investigation,
charge, complaint, claim, demand, or notice has been filed or commenced against
any of them alleging any failure so to comply.

     (k)  Tax Matters.
          -----------

                                       10
<PAGE>

          (i)    Each of the Company and its Subsidiaries has filed all Tax
     Returns that it was required to file. All such Tax Returns were correct and
     complete in all respects. All Taxes owed by any of the Company and its
     Subsidiaries (whether or not shown on any Tax Return) have been paid. None
     of the Company and its Subsidiaries currently is the beneficiary of any
     extension of time within which to file any Tax Return. No claim has ever
     been made by an authority in a jurisdiction where any of the Company and
     its Subsidiaries does not file Tax Returns that it is or may be subject to
     taxation by that jurisdiction. There are no Security Interests on any of
     the assets of any of the Company and its Subsidiaries that arose in
     connection with any failure (or alleged failure) to pay any Tax.

          (ii)   Each of the Company and its Subsidiaries has withheld and paid
     all Taxes required to have been withheld and paid in connection with
     amounts paid or owing to any employee, independent contractor, creditor,
     stockholder, or other third party.

          (iii)  No Seller or director or officer (or employee responsible for
     Tax matters) of any of the Company and its Subsidiaries expects any
     authority to assess any additional Taxes for any period for which Tax
     Returns have been filed. There is no dispute or claim concerning any Tax
     Liability of any of the Company and its Subsidiaries either (A) claimed or
     raised by any authority in writing or (B) as to which any of the Sellers
     and the directors and officers (and employees responsible for Tax matters)
     of the Company and its Subsidiaries has knowledge based upon personal
     contact with any agent of such authority. Section 4(k) of the Disclosure
     Schedule lists all federal, state, local, and foreign income Tax Returns
     filed with respect to any of the Company and its Subsidiaries for taxable
     periods ended on or after December 31, 1993, indicates those Tax Returns
     that have been audited, and indicates those Tax Returns that currently are
     the subject of audit. The Sellers have delivered to the Buyer correct and
     complete copies of all federal income Tax Returns, examination reports, and
     statements of deficiencies assessed against or agreed to by any of the
     Company and its Subsidiaries since December 31, 1993.

          (iv)   None of the Company and its Subsidiaries has waived any statute
     of limitations in respect of Taxes or agreed to any extension of time with
     respect to a Tax assessment or deficiency.

          (v)    None of the Company and its Subsidiaries has filed a consent
     under Code Section 341(f) concerning collapsible corporations. None of the
     Company and its Subsidiaries has made any payments, is obligated to make
     any payments, or is a party to any agreement that under certain
     circumstances could obligate it to make any payments that will not be
     deductible under Code Section 280G. None of the Company and its
     Subsidiaries has been a United States real property holding corporation
     within the meaning of Code Section 897(c)(2) during the applicable period
     specified in Code Section 897(c)(1)(A)(ii). Each of the Company and its
     Subsidiaries has disclosed on its federal income Tax Returns all positions
     taken therein that could give rise to a substantial understatement of
     federal income Tax within the meaning of Code Section 6662. None of the
     Company and its Subsidiaries is a party to any Tax allocation or sharing
     agreement. None of the Company and its Subsidiaries (A) has been a member
     of an Affiliated Group

                                       11
<PAGE>

     filing a consolidated federal income Tax Return (other than a group the
     common parent of which was the Company) or (B) has any Liability for the
     Taxes of any Person (other than any of the Company and its Subsidiaries)
     under Reg. Section 1. 1502-6 (or any similar provision of state, local, or
     foreign law), as a transferee or successor, by contract, or otherwise.

          (vi)   Section 4(k) of the Disclosure Schedule sets forth the
     following information with respect to each of the Company and its
     Subsidiaries (or, in the case of clause (B) below, with respect to each of
     the Subsidiaries) as of the most recent practicable date (as well as on an
     estimated pro forma basis as of the Closing giving effect to the
     consummation of the transactions contemplated hereby): (A) the basis of the
     Company or Subsidiary in its assets; (B) the basis of the stockholder(s) of
     each Subsidiary in its stock (or the amount of any Excess Loss Account);
     (C) the amount of any net operating loss, net capital loss, unused
     investment or other credit, unused foreign tax, or excess charitable
     contribution allocable to the Company or Subsidiary; and (D) the amount of
     any deferred gain or loss allocable to the Company or Subsidiary arising
     out of any Deferred Intercompany Transaction.

          (vii)  The unpaid Taxes of the Company and its Subsidiaries (A) did
     not, as of the Most Recent Fiscal Month End, exceed the reserve for Tax
     Liability (rather than any reserve for deferred Taxes established to
     reflect timing differences between book and Tax income) set forth on the
     face of the Most Recent Balance Sheet (rather than in any notes thereto)
     and (B) do not exceed that reserve as adjusted for the passage of time
     through the Closing Date in accordance with the past custom and practice of
     the Company and its Subsidiaries in filing their Tax Returns.

     (1)  Real Property.
          -------------

          (i)  Section 4(l)(i) of the Disclosure Schedule lists and describes
     briefly all real property that any of the Company and its Subsidiaries
     owns. Except as set forth in Section 4(l)(i) of the Disclosure Schedule,
     with respect to each such parcel of owned real property:

               (A) the identified owner has good and marketable title to the
          parcel of real property, free and clear of any Security Interest,
          easement, right-of-way, covenant, or other restriction, except for
          installments of special assessments not yet delinquent and recorded
          easements, covenants, and other restrictions which do not impair the
          current use, occupancy, or value, or the marketability of title, of
          the property subject thereto;

               (B) there are no pending or, to the Knowledge of any of the
          Sellers and the directors and officers (and employees with
          responsibility for real estate matters) of the Company and its
          Subsidiaries, threatened condemnation proceedings, lawsuits, or
          administrative actions relating to the property or other matters
          affecting adversely the current use, occupancy, or value thereof,

                                       12
<PAGE>

               (C) the legal description for the parcel contained in the deed
          thereof describes such parcel fully and adequately, the buildings and
          improvements are located within the boundary lines of the described
          parcels of land, are not in violation in any material respect of
          applicable setback requirements, zoning laws, and ordinances (and none
          of the properties or buildings or improvements thereon are subject to
          "permitted non-conforming use" or "permitted non-conforming structure"
          classifications), and do not encroach on any easement which may burden
          the land, and the land does not serve any adjoining property for any
          purpose inconsistent with the use of the land, and the property is not
          located within any flood plain or subject to any similar type
          restriction for which any permits or licenses necessary to the use
          thereof have not been obtained;

               (D) all facilities have received all approvals of governmental
          authorities (including licenses and permits) required in connection
          with the ownership or operation thereof and have been operated and
          maintained in accordance with applicable laws, rules, and regulations;

               (E) there are no leases, subleases, licenses, concessions, or
          other agreements, written or oral, granting to any party or parties
          the right of use or occupancy of any portion of the parcel of real
          property;

               (F) there are no outstanding options or rights of first refusal
          to purchase the parcel of real property, or any portion thereof or
          interest therein;

               (G) there are no parties (other than the Company and its
          Subsidiaries) in possession of the parcel of real property, other than
          tenants under any leases disclosed in Section 4(l)(i) of the
          Disclosure Schedule who are in possession of space to which they are
          entitled;

               (H) all facilities located on the parcel of real property are
          supplied with utilities and other services necessary for the operation
          of such facilities, including where necessary gas, electricity, water,
          telephone, sanitary sewer, and storm sewer, all of which services are
          adequate in accordance with all applicable laws, ordinances, rules,
          and regulations and are provided via public roads or via permanent,
          irrevocable, appurtenant easements benefiting the parcel of real
          property; and

               (I) each parcel of real property abuts on and has direct
          vehicular access to a public road, or has access to a public road via
          a permanent, irrevocable, appurtenant easement benefiting the parcel
          of real property.

          (ii) Section 4(l)(ii) of the Disclosure Schedule lists and describes
     briefly all real property leased or subleased to any of the Company and its
     Subsidiaries. Section 4(l)(ii) of the Disclosure Schedule also identifies
     the leased or subleased properties for which title insurance policies are
     to be procured in accordance with Section 5(h)(ii) below. The Sellers have
     delivered to the Buyer correct and complete copies of the leases and

                                       13
<PAGE>

     subleases listed in Section 4(l)(ii) of the Disclosure Schedule (as amended
     to date).  With respect to each lease and sublease listed in Section
     4(l)(ii) of the Disclosure Schedule:

               (A) the lease or sublease is legal, valid, binding, enforceable,
          and in full force and effect;

               (B) the lease or sublease will continue to be legal, valid,
          binding, enforceable, and in full force and effect on identical terms
          following the consummation of the transactions contemplated hereby;

               (C) no party to the lease or sublease is in breach or default,
          and no event has occurred which, with notice or lapse of time, would
          constitute a breach or default or permit termination, modification, or
          acceleration thereunder;

               (D) no party to the lease or sublease has repudiated any
          provision thereof,

               (E) there are no disputes, oral agreements, or forbearance
          programs in effect as to the lease or sublease;

               (F) with respect to each sublease, the representations and
          warranties set forth in subsections (A) through (E) above are true and
          correct with respect to the underlying lease;

               (G) none of the Company and its Subsidiaries has assigned,
          transferred, conveyed, mortgaged, deeded in trust, or encumbered any
          interest in the leasehold or subleasehold;

               (H) all facilities leased or subleased thereunder have received
          all approvals of governmental authorities (including licenses and
          permits) required in connection with the operation thereof and have
          been operated and maintained in accordance with applicable laws,
          rules, and regulations;

               (I) all facilities leased or subleased thereunder are supplied
          with utilities and other services necessary for the operation of said
          facilities; and

               (J) the owner of the facility leased or subleased has good and
          marketable title to the parcel of real property, free and clear of any
          Security Interest, easement, covenant, or other restriction, except
          for installments of special easements not yet delinquent and recorded
          easements, covenants, and other restrictions which do not impair the
          current use, occupancy, or value, or the marketability of title, of
          the property subject thereto.

          (iii) Section 4(l)(iii) of the Disclosure Schedule lists and describes
     briefly all easements and rights-of-way held by the Company and its
     Subsidiaries. Except as set forth in Section 4(l)(iii) of the Disclosure
     Schedule, the Company and its Subsidiaries

                                       14
<PAGE>

     have good, marketable and indefeasible rights and title in such easements
     and right-of-way, free and clear of Security Interests, and no Person is
     disputing such right and title to such easements and rights-of-way.

     (m)  Intellectual Property.
          ---------------------

          (i)    The Company and its Subsidiaries own or have the right to use
     pursuant to license, sublicense, agreement, or permission all Intellectual
     Property necessary or desirable for the operation of the Businesses of the
     Company and its Subsidiaries as presently conducted and as presently
     proposed to be conducted. Each item of Intellectual Property owned or used
     by any of the Company and its Subsidiaries immediately prior to the Closing
     hereunder will be owned or available for use by the Company or the
     Subsidiary on identical terms and conditions immediately subsequent to the
     Closing hereunder. Each of the Company and its Subsidiaries has taken all
     necessary and desirable action to maintain and protect each item of
     Intellectual Property that it owns or uses.

          (ii)   None of the Company and its Subsidiaries has interfered with,
     infringed upon, misappropriated, or otherwise come into conflict with any
     Intellectual Property rights of third parties or violated any
     confidentiality agreements to which they are parties, and none of the
     Sellers and the directors and officers (and employees with responsibility
     for Intellectual Property matters) of the Company and its Subsidiaries has
     ever received any charge, complaint, claim, demand, or notice alleging any
     such interference, infringement, misappropriation, or violation (including
     any claim that any of the Company and its Subsidiaries must license or
     refrain from using any Intellectual Property rights of any third party). To
     the Knowledge of any of the Sellers and the directors and officers (and
     employees with responsibility for Intellectual Property matters) of the
     Company and its Subsidiaries, no third party has interfered with, infringed
     upon, misappropriated, or otherwise come into conflict with any
     Intellectual Property rights of any of the Company and its Subsidiaries.

          (iii)  Section 4(m)(iii) of the Disclosure Schedule identifies each
     patent or registration which has been issued to any of the Company and its
     Subsidiaries with respect to any of its Intellectual Property, identifies
     each pending patent application or application for registration which any
     of the Company and its Subsidiaries has made with respect to any of its
     Intellectual Property, and identifies each license, agreement, or other
     permission which any of the Company and its Subsidiaries has granted to any
     third party with respect to any of its Intellectual Property (together with
     any exceptions). The Sellers have delivered to the Buyer correct and
     complete copies of all such patents, registrations, applications, licenses,
     agreements, and permissions (as amended to date) and have made available to
     the Buyer correct and complete copies of all other written documentation
     evidencing ownership and prosecution (if applicable) of each such item.
     Section 4(m)(iii) of the Disclosure Schedule also identifies each trade
     name or unregistered trademark used by any of the Company and its
     Subsidiaries in connection with any of its Businesses.  With respect to
     each item of Intellectual Property required to be identified in Section
     4(m)(iii) of the Disclosure Schedule:

                                       15
<PAGE>

               (A) the Company and its Subsidiaries possess all right, title,
          and interest in and to the item, free and clear of any Security
          Interest, license, or other restriction;

               (B) the item is not subject to any outstanding injunction,
          judgment, order, decree, ruling, or charge;

               (C) no action, suit, proceeding, hearing, investigation, charge,
          complaint, claim, or demand is pending or, to the Knowledge of any of
          the Sellers and the directors and officers (and employees with
          responsibility for Intellectual Property matters) of the Company and
          its Subsidiaries, is threatened which challenges the legality,
          validity, enforceability, use, or ownership of the item; and

               (D) none of the Company and its Subsidiaries has ever agreed to
          indemnify any Person for or against any interference, infringement,
          misappropriation, or other conflict with respect to the item.

          (iv) Section 4(m)(iv) of the Disclosure Schedule identifies each item
     of Intellectual Property that any third party owns and that any of the
     Company and its Subsidiaries uses pursuant to license, sublicense,
     agreement, or permission. The Sellers have delivered to the Buyer correct
     and complete copies of all such licenses, sublicenses, agreements, and
     permissions (as amended to date). With respect to each item of Intellectual
     Property required to be identified in Section 4(m)(iv) of the Disclosure
     Schedule:

               (A) the license, sublicense, agreement, or permission covering
          the item is legal, valid, binding, enforceable, and in full force and
          effect;

               (B) the license, sublicense, agreement, or permission will
          continue to be legal, valid, binding, enforceable, and in full force
          and effect on identical terms following the consummation of the
          transactions contemplated hereby (including the assignments and
          assumptions referred to in Section 2 above);

               (C) no party to the license, sublicense, agreement, or permission
          is in breach or default, and no event has occurred which with notice
          or lapse of time would constitute a breach or default or permit
          termination, modification, or acceleration thereunder;

               (D) no party to the license, sublicense, agreement, or permission
          has repudiated any provision thereof;

               (E) with respect to each sublicense, the representations and
          warranties set forth in subsections (A) through (D) above are true and
          correct with respect to the underlying license;

                                       16
<PAGE>

               (F) the underlying item of Intellectual Property is not subject
          to any outstanding injunction, judgment, order, decree, ruling, or
          charge;

               (G) no action, suit, proceeding, hearing, investigation, charge,
          complaint, claim, or demand is pending or, to the Knowledge of any of
          the Sellers and the directors and officers (and employees with
          responsibility for Intellectual Property matters) of the Company and
          its Subsidiaries, is threatened which challenges the legality,
          validity, or enforceability of the underlying item of Intellectual
          Property; and

               (H) none of the Company and its Subsidiaries has granted any
          sublicense or similar right with respect to the license, sublicense,
          agreement, or permission.

          (v)  To the Knowledge of any of the Sellers and the directors and
     officers (and employees with responsibility for Intellectual Property
     matters) of the Company and its Subsidiaries, none of the Company and its
     Subsidiaries will interfere with, infringe upon, misappropriate, or
     otherwise come into conflict with, any Intellectual Property rights of
     third parties as a result of the continued operation of its Businesses as
     presently conducted and as presently proposed to be conducted.

     (n)  Tangible Assets.  The Company and its Subsidiaries own or lease all
          ---------------
buildings, machinery, Equipment, and other tangible assets necessary for the
conduct of their Businesses as presently conducted and as presently proposed to
be conducted. Each such tangible asset is free from defects (patent and, to the
knowledge of the Company and Sellers, latent), has been maintained in accordance
with normal industry practice, is in good operating condition and repair
(subject to normal wear and tear), and is suitable for the purposes for which it
presently is used and presently is proposed to be used.

     (o)  Inventory.  Except as set forth in Section 4(o) of the Disclosure
          ---------
Schedule, the Inventory of the Company and its Subsidiaries consists of raw
materials and supplies fit for the purpose for which it was procured or
manufactured, and none of which is obsolete, damaged, or defective, subject only
to the reserve for Inventory writedown set forth on the face of the Most Recent
Fiscal Year End (rather than in any notes thereto) as adjusted for the passage
of time through the Closing Date in accordance with the past custom and practice
of the Company and its Subsidiaries. The Inventory is, and at the Closing Date
will be, at a level required to operate the Business consistent with past
practices of the Company and its Subsidiaries.

     (p)  Contracts. Section 4(p) of the Disclosure Schedule lists the following
          ---------
contracts and other agreements to which any of the Company and its Subsidiaries
is a party:

          (i) any agreement (or group of related agreements) for the lease of
     personal property to or from any Person providing for lease payments in
     excess of Fifty Thousand Dollars ($50,000) per annum;

                                       17
<PAGE>

          (ii)    any agreement (or group of related agreements) for the
     purchase or sale of raw materials, commodities, supplies, products, or
     other personal property, or for the furnishing or receipt of services, the
     performance of which will extend over a period of more than one (1) year,
     result in a loss to any of the Company and its Subsidiaries, or involve
     consideration in excess of Fifty Thousand Dollars ($50,000);

          (iii)   any agreement which causes the Company or any of its
     Subsidiaries to be a member of a partnership or joint venture;

          (iv)    any agreement (or group of related agreements) under which it
     has created, incurred, assumed, or guaranteed any indebtedness for borrowed
     money, or any capitalized lease obligation, in excess of Fifty Thousand
     Dollars ($50,000) or under which it has imposed a Security Interest on any
     of its assets, tangible or intangible;

          (v)     any agreement binding the Company to confidentiality or
     noncompetition;

          (vi)    any agreement with any of the Sellers and their Affiliates
     (other than the Company and its Subsidiaries);

          (vii)   any profit sharing, stock option, stock purchase, stock
     appreciation, deferred compensation, severance, or other plan or
     arrangement for the benefit of its current or former directors, officers,
     and employees;

          (viii)  any collective bargaining agreement;

          (ix)    any agreement for the employment of any individual on a full-
     time, part-time, consulting, or other basis providing annual compensation
     in excess of Fifty Thousand Dollars ($50,000) or providing severance
     benefits;

          (x)     any agreement under which it has advanced or loaned any amount
     to any of its directors, officers, and employees;

          (xi)    any agreement under which the consequences of a default or
     termination could have a material adverse effect on the Business, financial
     condition, operations, results of operations, or future prospects of any of
     the Company and its Subsidiaries; or

          (xii)   any other agreement (or group of related agreements) the
     performance of which involves consideration in excess of Fifty Thousand
     Dollars ($50,000).

The Sellers have delivered to the Buyer a correct and complete copy of each
written agreement listed in Section 4(p) of the Disclosure Schedule (as amended
to date) and a written summary setting forth the terms and conditions of each
oral agreement referred to in Section 4(p) of the Disclosure Schedule. With
respect to each such agreement: (A) the agreement is legal, valid, binding,
enforceable, and in full force and effect; (B) the agreement will continue to be
legal, valid, binding, enforceable, and in full force and effect on identical
terms following the consummation of the transactions contemplated hereby; (C) no
party is in breach or default, and

                                       18
<PAGE>

no event has occurred which with notice or lapse of time would constitute a
breach or default, or permit termination, modification, or acceleration, under
the agreement; (D) to the Sellers' knowledge no party is required to pay an
amount in excess of the fair market value for goods, services or leased property
or to sell goods or services at less than cost; and (E) no party has repudiated
any provision of the agreement.

     (q) Notes and Accounts Receivable.  All notes and Accounts Receivable of
         -----------------------------
the Company and its Subsidiaries are reflected properly on their books and
records, are valid receivables subject to no setoffs or counterclaims, are
current and collectible, and will be collected in accordance with their terms at
their recorded amounts, subject only to the reserve for bad debts set forth on
the face of the Most Recent Fiscal Year End (rather than in any notes thereto)
as adjusted for the passage of time through the Closing Date in accordance with
the past custom and practice of the Company and its Subsidiaries.

     (r) Powers of Attorney.  There are no outstanding powers of attorney
         ------------------
executed on behalf of any of the Company and its Subsidiaries.

     (s) Insurance.  Section 4(s) of the Disclosure Schedule sets forth the
         ---------
following information with respect to each insurance policy (including policies
providing property, casualty, liability, and workers' compensation coverage and
bond and surety arrangements) to which any of ' the Company and its Subsidiaries
has been a party, a named insured, or otherwise the beneficiary of coverage at
any time within the past 3 years:

         (i)   the name, address, and telephone number of the agent;

         (ii)  the name of the insurer, the name of the policyholder, and the
     name of each covered insured;

         (iii) the policy number and the period of coverage;

         (iv)  the scope (including an indication of whether the coverage was on
     a claims made, occurrence, or other basis) and amount (including a
     description of how deductibles and ceilings are calculated and operate) of
     coverage; and

         (v)   a description of any retroactive premium adjustments or other
     loss-sharing arrangements.

With respect to each such insurance policy: (A) the policy is legal, valid,
binding, enforceable, and in full force and effect; (B) the policy will continue
to be legal, valid, binding, enforceable, and in full force and effect on
identical terms following the consummation of the transactions contemplated
hereby; (C) neither any of the Company and its Subsidiaries nor any other party
to the policy is in breach or default (including with respect to the payment of
premiums or the giving of notices), and no event has occurred which, with notice
or the lapse of time, would constitute such a breach or default, or permit
termination, modification, or acceleration, under the policy; and (D) no party
to the policy has repudiated any provision thereof. Each of the Company and its
Subsidiaries has been covered during the past 3 years by insurance in scope and

                                       19
<PAGE>

amount customary and reasonable for the Businesses in which it has engaged
during the aforementioned period. Section 4(s) of the Disclosure Schedule
describes any self-insurance arrangements affecting any of the Company and its
Subsidiaries.

     (t) Litigation.  Section 4(t) of the Disclosure Schedule sets forth each
         ----------
instance in which any of the Company and its Subsidiaries (i) is subject to any
outstanding injunction, judgment, order, decree, ruling, or charge or (ii) is a
party or, to the Knowledge of any of the Sellers and the directors and officers
(and employees with responsibility for litigation matters) of the Company and
its Subsidiaries, is threatened to be made a party to any action, suit,
proceeding, hearing, or investigation of, in, or before any court or quasi-
judicial or administrative agency of any federal, state, local, or foreign
jurisdiction or before any arbitrator. None of the actions, suits, proceedings,
hearings, and investigations set forth in Section 4(t) of the Disclosure
Schedule could result in any material adverse change in the Business, financial
condition, operations, results of operations, or future prospects of any of the
Company and its Subsidiaries. None of the Sellers and the directors and officers
(and employees with responsibility for litigation matters) of the Company and
its Subsidiaries has any reason to believe that any such action, suit,
proceeding, hearing, or investigation may be brought or threatened against any
of the Company and its Subsidiaries.

     (u) Product Warranty.  Each product sold, leased, or delivered by any of
         ----------------
the Company and its Subsidiaries has been in conformity with all applicable
contractual commitments and all express and implied warranties, and none of the
Company and its Subsidiaries has any Liability (and there is no Basis for any
present or future action, suit, proceeding, hearing, investigation, charge,
complaint, claim, or demand against any of them giving rise to any Liability)
for replacement or repair thereof or other damages in connection therewith,
subject only to the reserve for product warranty claims set forth on the face of
the Most Recent Balance Sheet (rather than in any notes thereto) as adjusted for
the passage of time through the Closing Date in accordance with the past custom
and practice of the Company and its Subsidiaries. No product sold, leased, or
delivered by any of the Company and its Subsidiaries is subject to any guaranty,
warranty, or other indemnity beyond the applicable standard terms and conditions
of sale or lease. Section 4(u) of the Disclosure Schedule includes copies of the
standard terms and conditions of sale or lease for each of the Company and its
Subsidiaries (containing applicable guaranty, warranty, and indemnity
provisions).

     (v) Product Liability.  To the Knowledge of any of the Sellers, none of the
         -----------------
Company and its Subsidiaries has any Liability (and there is no Basis for any
present or future action, suit, proceeding, hearing, investigation, charge,
complaint, claim, or demand against any of them giving rise to any Liability)
arising out of any injury to individuals or property as a result of the
ownership, possession, or use of any product sold, leased, or delivered by any
of the Company and its Subsidiaries.

     (w) Employees.  To the Knowledge of any of the Sellers and the directors
         ---------
and officers (and employees with responsibility for employment matters) of the
Company and its Subsidiaries, no executive, key employee, or group of employees
has any plans to terminate employment with any of the Company and its
Subsidiaries. None of the Company and its Subsidiaries is a party to or bound by
any collective bargaining agreement, nor has any of them

                                       20
<PAGE>

experienced any strikes, grievances, claims of unfair labor practices, or other
collective bargaining disputes. None of the Company and its Subsidiaries has
committed any unfair labor practice. None of the Sellers and the directors and
officers (and employees with responsibility for employment matters) of the
Company and its Subsidiaries has any Knowledge of any organizational effort
presently being made or threatened by or on behalf of any labor union with
respect to employees of any of the Company and its Subsidiaries.

     (x)  Employee Benefits.
          -----------------

          (i)  Section 4(x) of the Disclosure Schedule lists each Employee
     Benefit Plan that any of the Company and its Subsidiaries maintains or to
     which any of the Company and its Subsidiaries contributes or has any
     obligation to contribute.

               (A) Each such Employee Benefit Plan (and each related trust,
          insurance contract, or fund) complies in form and in operation in all
          material respects with the applicable requirements of ERISA, the Code,
          and other applicable laws.

               (B) All required reports and descriptions (including Form 5500
          Annual Reports, summary annual reports, PBGC-1's, and summary plan
          descriptions) have been timely filed and distributed appropriately
          with respect to each such Employee Benefit Plan. The requirements of
          COBRA have been met with respect to each such Employee Benefit Plan
          which is a "group health plan7' under Section 4980B of the Code or
          Section 607(l) or 609 of ERISA.

               (C) All contributions (including all employer contributions and
          employee salary reduction contributions) which are due have been paid
          to each such Employee Benefit Plan which is an Employee Pension
          Benefit Plan and all contributions for any period ending on or before
          the Closing Date which are not yet due have been paid to each such
          Employee Pension Benefit Plan or accrued in accordance with the past
          custom and practice of the Company and its Subsidiaries. All premiums
          or other payments for all periods ending on or before the Closing Date
          have been paid with respect to each such Employee Benefit Plan which
          is an Employee Welfare Benefit Plan.

               (D) Each such Employee Benefit Plan which is an Employee Pension
          Benefit Plan meets the requirements of a "qualified plan" under Code
          Section 401(a) is so qualified, has received a favorable determination
          letter from the Internal Revenue Service and Seller is not aware of
          any facts or circumstances that could result in the revocation of such
          determination letter.

               (E) Except as set forth in Section 4(x) of the Disclosure
          Schedule, the market value of assets under each such Employee Benefit
          Plan which is a "defined benefit" plan subject to Title IV of ERISA
          (other than any Multiemployer Plan) equals or exceeds the present
          value of all vested and nonvested Liabilities thereunder determined in
          accordance with PBGC methods,

                                       21
<PAGE>

          factors, and assumptions applicable to such a plan terminating on the
          date for determination.

               (F) The Sellers have delivered or made available to the Buyer
          correct and complete copies of the plan documents and summary plan
          descriptions, the most recent determination letter received from the
          Internal Revenue Service, the most recent Form 5500 Annual Report, and
          all related trust agreements, insurance contracts, and other funding
          agreements which implement each such Employee Benefit Plan.

               (G) There is no unfunded Liability for accrued benefits, whether
          or not vested, under any funded Employee Benefit Plan, and all
          contributions required to be made to or with respect to each Employee
          Benefit Plan and all costs of administering each Employee Benefit Plan
          have been completely and timely made or paid.

          (ii) With respect to each Employee Benefit Plan that any of the
     Company, its Subsidiaries, and any ERISA Affiliate maintains or ever has
     maintained or to which any of them contributes, ever has contributed, or
     ever has been required to contribute:

               (A) No such Employee Benefit Plan which is an Employee Pension
          Benefit Plan (other than any Multiemployer Plan) has been completely
          or partially terminated or been the subject of a Reportable Event as
          to which notices would be required to be filed with the PBGC. No
          proceeding by the PBGC to terminate any such Employee Pension Benefit
          Plan (other than any Multiemployer Plan) has been instituted or, to
          the Knowledge of any of the Sellers and the directors and officers
          (and employees with responsibility for employee benefits matters) of
          the Company and its Subsidiaries, threatened.

               (B) There have been no Prohibited Transactions with respect to
          any such Employee Benefit Plan. No Fiduciary has any Liability for
          breach of fiduciary duty or any other failure to act or comply in
          connection with the administration or investment of the assets of any
          such Employee Benefit Plan. No action, suit, proceeding, hearing, or
          investigation with respect to the administration or the investment of
          the assets of any such Employee Benefit Plan (other than routine
          claims for benefits) is pending or, to the Knowledge of any of the
          Sellers and the directors and officers (and employees with
          responsibility for employee benefits matters) of the Company and its
          Subsidiaries, threatened.  None of the Sellers and the directors and
          officers (and employees with responsibility for employee benefits
          matters) of the Company and its Subsidiaries has any Knowledge of any
          Basis for any such action, suit, proceeding, hearing, or
          investigation.

               (C) Except as disclosed in Schedule 4(x) of the Disclosure
          Schedule, none of the Company and its Subsidiaries has incurred, and
          none of the Sellers and the directors and officers (and employees with
          responsibility for employee

                                       22
<PAGE>

          benefits matters) of the Company and its Subsidiaries has any reason
          to expect that any of the Company and its Subsidiaries will incur, any
          Liability to the PBGC (other than PBGC premium payments) or otherwise
          under Title IV of ERISA (including any withdrawal liability as defined
          in ERISA Section 4201) or under the Code with respect to any such
          Employee Benefit Plan which is an Employee Pension Benefit Plan.

          (iii)  None of the Company, its Subsidiaries, and the other members of
     the Controlled Group that includes the Company and its Subsidiaries
     contributes to, ever has contributed to, or ever has been required to
     contribute to any Multiemployer Plan or has any Liability (including
     withdrawal liability as defined in ERISA Section 4201) under any
     Multiemployer Plan.

          (iv)   Except as disclosed in Schedule 4(x) of the Disclosure
     Schedule, none of the Company and its Subsidiaries maintains or ever has
     maintained or contributes, ever has contributed, or ever has been required
     to contribute to any Employee Welfare Benefit Plan providing medical,
     health, or life insurance or other welfare-type benefits for current or
     future retired or terminated employees, their spouses, or their dependents
     (other than in accordance with COBRA).

     (y)  Guaranties.  Except as set forth in Section 4(y) of the Disclosure
          ----------
Schedule, none of the Company and its Subsidiaries is a guarantor or otherwise
is liable for any Liability or obligation (including indebtedness) of any other
Person.

     (z)  Environmental, Health, and Safely Matters.
          -----------------------------------------

          (i)    Each of the Company, its Subsidiaries, and their respective
     predecessors and Affiliates has complied and is in compliance in all
     material respects with all Environmental, Health, and Safety Requirements.

          (ii)   Without limiting the generality of the foregoing, each of the
     Company, its Subsidiaries and their respective Affiliates has obtained and
     complied with, and is in compliance in all material respects with, all
     permits, licenses and other authorizations that are required pursuant to
     Environmental, Health, and Safety Requirements for the occupation of its
     facilities and the operation of its Business; a list of all such permits,
     licenses and other authorizations is set forth on the attached
     "Environmental and Safety Permits Schedule."

          (iii)  Neither the Company, its Subsidiaries, nor their respective
     predecessors or Affiliates has received any written or oral notice, report
     or other information regarding any actual or alleged violation of
     Environmental, Health, and Safety Requirements, or any liabilities or
     potential liabilities (whether accrued, absolute, contingent, unliquidated
     or otherwise), including any investigatory, remedial or corrective
     obligations, relating to any of them or its facilities arising under
     Environmental, Health, and Safety Requirements.

                                       23
<PAGE>

          (iv)    None of the following exists at any property or facility owned
     or operated by the Company or its Subsidiaries: (1) underground storage
     tanks, (2) asbestos-containing material in any form or condition, (3)
     materials or equipment containing polychlorinated biphenyls, or (4)
     landfills, surface impoundments, or disposal areas.

          (v)     None of the Company, its Subsidiaries, or their respective
     predecessors or Affiliates has treated, stored, disposed of, arranged for
     or permitted the disposal of, transported, handled, or released any
     substance, including, without limitation, any hazardous substance, or owned
     or operated any property or facility (and no such property or facility is
     contaminated by any such substance) in a manner that has given or would
     give rise to liabilities, including any liability for response costs,
     corrective action costs, personal injury, property damage, natural
     resources damages or attorneys' fees, pursuant to the Comprehensive
     Environmental Response, Compensation and Liability Act of 1980, as amended
     ("CERCLA"), the Solid Waste. Disposal Act, as amended ("SVTDA") or any
     other Environmental, Health, and Safety Requirements.

          (vi)    Neither this Agreement nor the consummation of the transaction
     that is the subject of this Agreement will result in any obligations for
     site investigation or cleanup, or notification to or consent of government
     agencies or third parties, pursuant to any of the so called "transaction-
     triggered" or "responsible property transfer" Environmental, Health, and
     Safety Requirements.

          (vii)   Neither the Company, its Subsidiaries, nor any of their
     respective predecessors or Affiliates has, either expressly or by operation
     of law, assumed or undertaken any liability, including, without limitation,
     any obligation for corrective or remedial action, of any other Person
     relating to Environmental, Health, and Safety Requirements.

          (viii)  To Sellers' knowledge, no facts, events or conditions relating
     to the past or present facilities, properties or operations of the Company,
     its Subsidiaries, or any of their respective predecessors or Affiliates
     will prevent, hinder or limit continued compliance with Environmental,
     Health, and Safety Requirements, give rise to any investigatory, remedial
     or corrective obligations pursuant to Environmental, Health, and Safety
     Requirements, or give rise to any other Liabilities (whether accrued,
     absolute, contingent, unliquidated or otherwise) pursuant to Environmental,
     Health, and Safety Requirements, including, without limitation, any
     relating to onsite or offsite releases or threatened releases of hazardous
     materials, substances or wastes, personal injury, property damage or
     natural resources damage.

     (aa) Tariffs, FCC Licenses.
          ---------------------

          (i)     The regulatory tariffs applicable to the Business stand in
     full force and effect on the date of this Agreement, and will stand in full
     force and effect at Closing, in accordance with all of their terms, and
     there is no outstanding notice of cancellation or termination or, to
     Sellers' Knowledge, any threatened cancellation or termination in
     connection therewith, nor is Seller subject to any restrictions or
     conditions applicable to

                                       24
<PAGE>

     its regulatory tariffs that limit or would limit the operation of the
     Business (other than restrictions or conditions generally applicable to
     tariffs of that type). Each such tariff has been duly and validly approved
     by the applicable regulatory agency. Neither the Company nor its
     Subsidiaries are in default under the terms and conditions of any such
     tariff and there is no basis for any claim of default by the Company or its
     Subsidiaries in any respect under any such tariff. There are no
     applications by the Company or its Subsidiaries or complaints or petitions
     by others or proceedings pending or threatened before the Georgia PSC
     relating to the Business or its operations or the regulatory tariffs. To
     the knowledge of Sellers, there are no material violations by subscribers
     or others under any such tariff. Section 4(aa)(i) of the Disclosure
     Schedule sets forth all of the tariffs in force in connection with the
     operation of the Business. A true and correct copy of each tariff
     applicable to the Business has been delivered or made available to Buyer.

          (ii) Listed on Section 4(aa)(ii) of the Disclosure Schedule are all of
     the FCC licenses, permits, operating authority and regulatory approvals
     held by the Company and its Subsidiaries that are used in the operation of
     the Business. The licenses, permits, operating authority and regulatory
     approvals set forth on Section 4(aa)(ii) of the Disclosure Schedule
     constitute all of the licenses, permits, operating authority and regulatory
     approvals which are required for the lawful conduct of the Business. Each
     of such licenses, permits, operating authority and regulatory approvals are
     in full force and effect in accordance with their terms on the date of this
     Agreement, and will be in full force and effect in accordance with their
     terms at the time of Closing, and there is no outstanding notice of
     cancellation or termination or, to Sellers' Knowledge, any threatened
     cancellation or termination in connection therewith, nor are any of such
     licenses, permits, operating authority and regulatory approvals subject to
     any restrictions or conditions that limit the operation of the Business
     (other than restrictions or conditions generally applicable to licenses of
     that type). Subject to the Communications Act of 1934, as amended, and the
     regulations thereunder, such licenses and permits are free from all
     Security Interests, claims and encumbrances of any nature whatsoever. There
     are no applications by the Company or its Subsidiaries or complaints or
     petitions by others or proceedings pending or threatened before the FCC or
     any other governmental authority relating to the Business or such licenses,
     permits, operating authority and regulatory approvals that would have a
     material adverse impact on the Business.

     (bb) Access Lines. T he number of Access Lines as of the Closing Date will
          ------------
not be less than 38,000.

     (cc) Year 2000.  To the Knowledge of Sellers, none of the computer
          ---------
software, computer firmware, computer hardware (whether general or special
purpose) or other similar or related items of automated, computerized or
software systems that are used or relied on by the Company or its Subsidiaries
in the conduct of their respective Businesses, and none of the products and
services sold, licensed, rendered, or otherwise provided by the Company and its
Subsidiaries in the conduct of their respective Businesses, is expected to
malfunction, cease to function, generate incorrect data or produce incorrect
results when processing, providing or receiving (i) date-related data from, into
and between the twentieth and twenty-first centuries or (ii) date-related data
in connection with any valid date in the twentieth and twenty-first centuries.

                                       25
<PAGE>

At the direction of the Georgia PSC, Henderson Ridge Consulting has performed an
audit of the Company's Y2K. readiness and the report supports management's
representation that the Company is Y2K compliant. In the event the Company
incurs material Year 2000 problems prior to the Closing, Sellers shall have 45
days to cure the problems to Buyer's satisfaction.

     Except as set forth in Section 4(cc) of the Disclosure Schedule, neither
the Company nor its Subsidiaries has made any representations or warranties
regarding the ability of any product or service sold, licensed, rendered, or
otherwise provided by the Company or its Subsidiaries in the conduct of their
respective Businesses to operate without malfunction, to operate without ceasing
to function, to generate correct data or to produce correct results when
processing, providing or receiving (i) date-related data from, into and between
the twentieth and twenty-first centuries and (ii) date-related data in
connection with any valid date in the twentieth and twenty-first centuries.

     (dd) Certain Business Relationships with the Company and Its Subsidiaries.
          --------------------------------------------------------------------
Except as set forth in Section 4(dd) of the Disclosure Schedule, none of the
Sellers and their Affiliates has been involved in any business arrangement or
relationship with any of the Company and its Subsidiaries within the past twelve
(12) months, and none of the Sellers and their Affiliates owns any asset,
tangible or intangible, which is used in the Business of any of the Company and
its Subsidiaries.

     (ee) Disclosure.  The representations and warranties contained in this
          ----------
Section 4 do not contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements and
information contained in this Section 4 not misleading in any material respect.

     5.   Pre-Closing Covenants.  The Parties agree as follows with respect to
          ---------------------
the period between the execution of this Agreement and the Closing.

     (a)  General.  Each of the Parties will use his or its best efforts to take
          -------
all action and to do all things necessary, proper, or advisable in order to
consummate and make effective the transactions contemplated by this Agreement
(including satisfaction, but not waiver, of the closing conditions set forth in
Section 7 below). Buyer will upon execution of this Agreement promptly complete
the requirements of the RTFC in order for the RTFC to evaluate Buyer's loan
request.

     (b)  Notices and Consents.
          --------------------

          (i) The Sellers will cause each of the Company and its Subsidiaries to
     give any notices to third parties, and will cause each of the Company and
     its Subsidiaries to use its best efforts to obtain any third party
     consents, that the Buyer may request in connection with the matters
     referred to in Section 4(c) above. Each of the Parties will (and the
     Sellers will cause each of the Company and its Subsidiaries to) give any
     notices to, make any filings with, and use its best efforts to obtain any
     authorizations, consents, and approvals of governments and governmental
     agencies in connection with the matters referred to in Section 3(a)(ii),
     Section 3(b)(ii), and Section 4(c) above. Any requests for

                                       26
<PAGE>

     authorizations, consents or approvals needed by the Company and its
     Subsidiaries will be submitted to Buyer for approval prior to forwarding to
     a third party, government or governmental agency.

          (ii)  Promptly after the date hereof, Buyer and Sellers shall file any
     notification  required to be filed under the HSR Act to consummate the
     transactions contemplated hereby, and shall request early termination of
     the waiting period thereunder. Buyer and Sellers shall use all commercially
     reasonable efforts to comply as promptly as practicable with any requests
     made pursuant to the HSR Act for additional information. Buyer and Sellers
     shall cooperate in such efforts to the extent commercially reasonable, and
     each Party shall pay one-half of the filing fees incurred in connection
     with the filings required under the HSR Act.

          (iii) Promptly after the date hereof, Buyer and Sellers shall make
     all filings required by the FCC and Georgia PSC, and take all actions
     reasonably necessary to obtain all consents, permits and orders required by
     the FCC and Georgia PSC as conditions to the obligations of Buyer and
     Sellers to consummate the transactions hereunder. Buyer and Sellers shall
     use all commercially reasonable efforts to comply as promptly as
     practicable with any request made by the FCC or Georgia PSC for additional
     information. Buyer and Sellers shall cooperate in such efforts to the
     extent commercially reasonable. Each Party shall pay one-half of the fees
     associated with the filings made by the Parties in order to comply with
     this Section 5(b)(iii).

     (c)  Operation of Business. The Sellers will not cause or permit any of the
          ---------------------
Company and its Subsidiaries to engage in any practice, take any action, or
enter into any transaction outside the Ordinary Course of Business. Without
limiting the generality of the foregoing, the Sellers will not cause or permit
any of the Company and its Subsidiaries to:

          (i)    declare, set aside, or pay any dividend or make any
     distribution with respect to its capital stock or redeem, purchase, or
     otherwise acquire any of its capital stock other than the payment of One
     Hundred Thousand Dollars ($100,000) as a 1999 year end dividend;

          (ii)   purchase, sell, lease, mortgage, pledge or otherwise acquire or
     dispose of any of their assets, except for acquisitions and dispositions in
     the Ordinary Course of Business consistent with past practices;

          (iii)  except with Buyer's prior written consent, increase or
     otherwise change the rate or nature of the compensation (including wages,
     salaries and bonuses) that is paid or payable to any Person, and enter
     into, renew or allow the renewal of, any employment or consulting agreement
     or other contract or arrangement with respect to the performance of
     personal services;

          (iv)   except with Buyer's prior written consent, enter into, or
     become obligated under, any contract, agreement or commitment on behalf of
     the Company or any of its Subsidiaries, except in the Ordinary Course of
     Business or change, amend, terminate or

                                       27
<PAGE>

     otherwise modify any material contract, agreement or commitment, except for
     those which terminate or expire by their own terms;

          (v)    allow any policies of liability and casualty insurance carried
     by the Company and its Subsidiaries to lapse;

          (vi)   except with Buyer's prior written consent, adopt or commit to
     adopt, any pension, profit sharing, deferred compensation or similar plan,
     program or trust on behalf of personnel of the Company and its
     Subsidiaries, other than any such plan, program or trust currently
     maintained by the Company and its Subsidiaries;

          (vii)  voluntarily agree to enter into or enter into any collective
     bargaining agreement applicable to any employees of the Company and its
     Subsidiaries or otherwise recognize any union as the bargaining
     representative of any such employees;

          (viii) take any action which could reasonably be expected to affect
     in any adverse manner any of the permits, licenses, regulatory authority or
     governmental approvals of the Company or its Subsidiaries; or

          (ix)   otherwise engage in any practice, take any action, or enter
     into any transaction of the sort described in Section 4(h) above.

     (d)  Preservation of Business.  The Sellers will cause each of the Company
          ------------------------
and its Subsidiaries to keep its Business and properties substantially intact,
including its present operations, physical facilities, working conditions, and
relationships with lessors, licensors, suppliers, customers, and employees.

     (e)  Full Access.  Each of the Sellers will permit, and the Sellers will
          -----------
cause each of the Company and its Subsidiaries to permit, representatives of the
Buyer to have full access at all reasonable times, and in a manner so as not to
interfere with the normal business operations of the Company and its
Subsidiaries, to all premises, properties, personnel, books, records (including
Tax records), contracts, and documents of or pertaining to each of the Company
and its Subsidiaries.

     (f)  Notice of Developments. The Sellers will give prompt written notice to
          ----------------------
the Buyer of any material adverse development causing a breach of any of the
representations and warranties in Section 4 above. Each Party will give prompt
written notice to the others of any material adverse development causing a
breach of any of his, or its own representations and warranties in Section 3
above. No disclosure by any Party pursuant to this Section 5(f), however, shall
be deemed to amend or supplement the Disclosure Schedule or to prevent or cure
any misrepresentation, breach of warranty, or breach of covenant.

     (g)  Financial and Management Reports.  From the date of this Agreement
          --------------------------------
until the earlier of the Closing or the termination of this Agreement pursuant
to Section 10, within twenty (20) days after the end of each month ending after
the date hereof, Sellers shall furnish Buyer with a copy of the monthly combined
financial statements and reports of the Company and its

                                       28
<PAGE>

Subsidiaries prepared after the date of the Most Recent Financial Statements
(including the balance sheet and operating statement for each such month and the
fiscal year to the end of such month). In addition, Sellers shall furnish Buyer,
upon request, with copies of regular management reports, if any, concerning its
operation within ten (10) days after such reports are prepared. Sellers
understand that Buyer or one or more of its Affiliates (including the Company
after the Closing) may in the future prepare offering memoranda arid/or file
registration statements under the Securities Act and/or become a reporting
company under the Securities Exchange Act and that, in connection therewith, any
of such companies may be required to prepare financial statements of the Company
suitable for filing with the Securities and Exchange Commission for periods
prior to the Closing Date and such financial statements will need to be prepared
in accordance with Regulation S-X of the Securities Act or other applicable
legal requirements (the "S-X Financials"). Accordingly, Sellers shall furnish to
the Buyer (in addition to the Financial Statements) any information or documents
reasonably requested by the Buyer and in the Sellers' possession or to which
they have access, constituting, or necessary or desirable for the completion of,
such offering memoranda, registration statements and the S-X Financials
(including in response to Securities and Exchange Commission comments), and
Sellers agree, following the Closing, to execute, or cause to be executed, any
reasonably necessary management representation letters to permit Buyer, Sellers
or one of their respective Affiliates independent accountants to issue
unqualified reports with respect to the S-X Financials that are required to be
filed pursuant to applicable legal requirements.

     (h)  Title Insurance.  The Sellers will cause the Company and its
          ---------------
Subsidiaries to obtain the following title insurance commitments, policies, and
riders in preparation for the Closing:

          (i)  with respect to each parcel of real estate that any of the
     Company and its Subsidiaries owns, an ALTA Owner's Policy of Title
     Insurance Form B-1987 (or equivalent policy acceptable to the Buyer if the
     real property is located in a state in which an ALTA Owner's Policy of
     Title Insurance Form B-1987 is not available) issued by a title insurer
     satisfactory to the Buyer (and, if requested by the Buyer, reinsured in
     whole or in part by one or more insurance companies and pursuant to a
     direct access agreement acceptable to the Buyer), in such amount as the
     Buyer may determine to be the fair market value of such real property
     (including all improvements located thereon), insuring title to such real
     property to be in the Company or its Subsidiary as of the Closing (subject
     only to the title exceptions described above in Section 4(l)(i) and in
     Section 4(l)(i) of the Disclosure Schedule); and

          (ii) with respect to each parcel of real estate that any of the
     Company and its Subsidiaries leases or subleases and which is listed on
     Section 4(l)(ii) of the Disclosure Schedule as a property for which a title
     insurance policy is to be procured, an ALTA Leasehold Owner's Policy of
     Title Insurance-1987 (or equivalent policy acceptable to the Buyer if the
     real property is located in a state in which an ALTA Leasehold Owner's
     Policy of Title Insurance-1987 is not available) issued by a title insurer
     satisfactory to the Buyer (and, if requested by the Buyer, reinsured in
     whole or in part by one or more insurance companies and pursuant to a
     direct access agreement acceptable to the Buyer) in such amount as the
     Buyer may determine (taking into account the time cost of money using the
     Applicable Rate as the discount rate and such other factors as whether the
     fair

                                       29
<PAGE>

     market rental value of the premises exceeds the stipulated consideration in
     the lease or sublease, whether the tenant or subtenant has any option to
     renew or extend, whether the tenant or subtenant owns any improvements
     located on the premises, whether the tenant or subtenant is permitted to
     sublease, and whether the tenant or subtenant would owe any amount under
     the lease or sublease if evicted), insuring title to the leasehold or
     subleasehold estate to be in the Company or its Subsidiary as of the
     Closing (subject only to the title exceptions described above in Section
     4(l)(ii) and in 4(l)(ii) of the Disclosure Schedule).

Each title insurance policy delivered under Section 5(h)(i) and Section 5(h)(ii)
above shall (A) insure title to the real property and all recorded easements
benefiting such real property, (B) contain an "extended coverage endorsement"
insuring over the general exceptions contained customarily in such policies, (C)
contain an ALTA Zoning Endorsement 3.1 (or equivalent), (D) contain an
endorsement insuring that the real property described in the title insurance
policy is the same real estate as shown on the Survey delivered with respect to
such property, (E) contain an endorsement insuring that each street adjacent to
the real property is a public street and that there is direct and unencumbered
pedestrian and vehicular access to such street from the real property, (F)
contain an inflation endorsement providing for annual adjustments in the amount
of coverage corresponding to the annual percentage increase, if any, in the
United States Department of Commerce Composite Construction Cost Index (Base
Year = 1998), (G) if the real property consists of more than one record parcel,
contain a "contiguity" endorsement insuring that all of the record parcels are
contiguous to one another, and (H) contain a "non-imputation" endorsement to the
effect that title defects known to the officers, directors, and stockholders of
the owner prior to the Closing shall not be deemed "facts known to the insured"
for purposes of the policy.

     (i) Surveys.  With respect to each parcel of real property that any of the
         -------
Company and its Subsidiaries owns, leases, or subleases, and as to which a title
insurance policy is to be procured pursuant to Section 5(h) above, the Sellers
will cause the Company and its Subsidiaries to procure in preparation for the
Closing a current survey of the real property certified to the Buyer, prepared
by a licensed surveyor and conforming to current ALTA Minimum Detail
Requirements for Land Title Surveys, disclosing the location of all
improvements, easements, party walls, sidewalks, roadways, utility lines, and
other matters shown customarily on such surveys, and showing access
affirmatively to public streets and roads (the "Survey"). The Survey shall not
disclose any survey defect or encroachment from or onto the real property which
has not been cured or insured over prior to the Closing.

     (j) Exclusivity.  None of the Sellers will (and the Sellers will not cause
         -----------
or permit any of the Company and its Subsidiaries to) (i) solicit, initiate, or
encourage the submission of any proposal or offer from any Person relating to
the acquisition of any capital stock or other voting securities, or any
substantial portion of the assets, of any of the Company and its Subsidiaries
(including any acquisition structured as a merger, consolidation, or share
exchange) or (ii) participate in any discussions or negotiations regarding,
furnish any information with respect to, assist or participate in, or facilitate
in any other manner any effort or attempt by any Person to do or seek any of the
foregoing. None of the Sellers will vote their Company Shares in favor of any
such acquisition structured as a merger, consolidation, or share exchange. The
Sellers will notify

                                       30
<PAGE>

the Buyer immediately if any Person makes any proposal, offer, inquiry, or
contact with respect to any of the foregoing.

     (k)  Split Dollar Insurance.  Prior to closing, Sellers shall structure up
          ----------------------
to $6,000,000 of cash surrender value in the Company to fund a split dollar
insurance policy satisfactory to Buyer to fully fund premiums and allow the
Company in the future years after closing to avoid recording a premium expense
under GAAP. The purchase price, as otherwise adjusted hereunder, shall be
reduced by the amount of the present value of the premium expense of such
insurance, based upon a discount rate of fourteen percent (14%) per annum.

     (1)  Buyer's Review of Disclosure Schedule.  The Buyer shall have ten (10)
          -------------------------------------
days from the date that Sellers deliver to Buyer a complete Disclosure Schedule
to review such disclosures. To the extent that Buyer is unwilling to accept a
disclosure which is an obligation of the Company or an exception to a
representation, such disclosure shall not be included on the Disclosure
Schedule.

     6.   Post-Closing Covenants.  The Parties agree as follows with respect to
          ----------------------
the period following the Closing.

     (a)  General.  In case at any time after the Closing any further action is
          -------
necessary or desirable to carry out the purposes of this Agreement, each of the
Parties will take such further action (including the execution and delivery of
such further instruments and documents) as any other Party reasonably may
request, all at the sole cost and expense of the requesting Party (unless the
requesting Party is entitled to indemnification therefor under Section 8 below).
The Sellers acknowledge and agree that from and after the Closing the Buyer will
be entitled to possession of all documents, books, records (including Tax
records), agreements, and financial data of any sort relating to the Company and
its Subsidiaries.

     (b)  Litigation Support. In the event and for so long as any Party actively
          ------------------
is contesting or defending against any action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand in connection with (i) any
transaction contemplated under this Agreement or (ii) any fact, situation,
circumstance, status, condition, activity, practice, plan, occurrence, event,
incident, action, failure to act, or transaction on or prior to the Closing Date
involving any of the Company and its Subsidiaries, each of the other Parties
will cooperate with him, or it and his, hers or its counsel in the contest or
defense, make available their personnel, and provide such testimony and access
to their books and records as shall be necessary in connection with the contest
or defense, all at the sole cost and expense of the contesting or defending
Party (unless the contesting or defending Party is entitled to indemnification
therefor under Section 8 below).

     (c)  Transition.  None of the Sellers will take any action that is designed
          ----------
or intended to have the effect of discouraging any lessor, licensor, customer,
supplier, or other business associate of any of the Company and its Subsidiaries
from maintaining the same business relationships with the Company and its
Subsidiaries after the Closing as it maintained with the Company and its
Subsidiaries prior to the Closing. Each of the Sellers will refer all customer
inquiries relating to the Businesses of the Company and its Subsidiaries to the
Buyer from and after the Closing.

                                       31
<PAGE>

     (d)  Confidentiality.  Each of the Sellers will treat and hold as such all
          ---------------
of the Confidential Information, refrain from using any of the Confidential
Information except in connection with this Agreement, and deliver promptly to
the Buyer or destroy, at the request and option of the Buyer, all tangible
embodiments (and all copies) of the Confidential Information which are in his or
its possession. In the event that any of the Sellers is requested or required
(by oral question or request for information or documents in any legal
proceeding, interrogatory, subpoena, civil investigative demand, or similar
process) to disclose any Confidential Information, that Seller will notify the
Buyer promptly of the request or requirement so that the Buyer may seek an
appropriate protective order or waive compliance with the provisions of this
Section 6(d). If, in the absence of a protective order or the receipt of a
waiver hereunder, any of the Sellers is, on the advice of counsel, compelled to
disclose any Confidential Information to any tribunal or else stand liable for
contempt, that Seller may disclose the Confidential Information to the tribunal;
provided, however, that the disclosing Seller shall use his or its best efforts
to obtain, at the reasonable request of the Buyer, an order or other assurance
that confidential treatment will be accorded to such portion of the Confidential
Information required to be disclosed as the Buyer shall designate. The foregoing
provisions shall not apply to any Confidential Information which is generally
available to the public immediately prior to the time of disclosure.

     (e)  Certain Existing Compensation Agreements.  In connection with the
          ----------------------------------------
execution of non-competition agreements in form and substance satisfactory to
the Buyer, Buyer shall honor the existing non-qualified Deferred Compensation
Agreements for Ed Haymans, M.L. Coffer and John Long, and the Company may amend
the Deferred Compensation Agreements prior to the Closing Date to provide for
payment to each without discount in the event that employment ceases prior to
age 65 for any reason.

     7.   Conditions to Obligation to Close.
          ---------------------------------

     (a)  Conditions to Obligation of the Buyer.  The obligation of the Buyer to
          -------------------------------------
consummate the transactions to be performed by it in connection with the Closing
is subject to satisfaction of the following conditions:

          (i)    the representations and warranties set forth in Section 3(a)
     and Section 4 above shall be true and correct in all material respects at
     and as of the Closing Date;

          (ii)   Sellers shall have performed and complied in all material
     respects with all of their covenants hereunder through the Closing;

          (iii)  the Company and its Subsidiaries shall have procured all of the
     third party consents specified in Section 5(b) above, all of the title
     insurance commitments, policies, and riders specified in Section 5(h)
     above, and all of the Surveys specified in Section 5(i) above;

          (iv)   no action, suit, or proceeding shall be pending or threatened
     before any court or quasi-judicial or administrative agency of any federal,
     state, local, or foreign

                                       32
<PAGE>

     jurisdiction or before any arbitrator wherein an unfavorable injunction,
     judgment, order, decree, ruling, or charge would (A) prevent consummation
     of any of the transactions contemplated by this Agreement, (B) cause any of
     the transactions contemplated by this Agreement to be rescinded following
     consummation, (C) affect adversely the right of the Buyer to own the
     Company Shares and to control the Company and its Subsidiaries, or (D)
     affect adversely the right of any of the Company and its Subsidiaries to
     own its assets and to operate its Businesses (and no such injunction,
     judgment, order, decree, ruling, or charge shall be in effect);

          (v)    Sellers shall have delivered to the Buyer a certificate to the
     effect that each of the conditions specified above in Section 7(a)(i)-(iv)
     is satisfied in all respects;

          (vi)   all applicable waiting periods (and any extensions thereof)
     under the HSR Act shall have expired or otherwise been terminated and the
     Parties, the Company, and its Subsidiaries shall have received all other
     authorizations, consents, and approvals of governments and governmental
     agencies referred to in Section 3(a)(ii), Section 3(b)(ii), and Section
     4(c) above;

          (vii)  all applicable consents, permits and orders required by the
     FCC, the Georgia PSC and any other governmental authority shall have been
     obtained and become final;

          (viii) the relevant parties shall have entered into Noncompetition.
     Agreements and the same shall be in full force and effect;

          (ix)   Buyer shall have received from counsel to Sellers an opinion in
     form and substance as set forth in Exhibit D attached hereto, addressed to
     Buyer, and dated as of the Closing Date;

          (x)    Buyer shall have received the resignations, effective as of the
     Closing, of each director and officer of the Company and its Subsidiaries;

          (xi)   Buyer shall have obtained from the Rural Telephone Finance
     Cooperative or other institutional lender, on terms and conditions
     satisfactory to it in its sole discretion, all of the financing it needs in
     order to consummate the transactions contemplated hereby and fund the
     working capital requirements of the Company and its Subsidiaries after the
     Closing;

          (xii)  at the Closing, the Company shall have no less than Four
     Million Dollars ($4,000,000) in readily-available cash, a minimum net worth
     of Nine Million Dollars ($9,000,000) and a minimum current ratio of 1.2.
     The Parties acknowledge that they will use best efforts to determine
     compliance with this condition immediately prior to Closing and that the
     final calculations and adjustments shall be made to reflect the actual
     position of the Company in the Final Closing Date Report delivered to the
     Sellers by Buyer thirty days after the Closing Date;

                                       33
<PAGE>

          (xiii)  between the date of this Agreement and the Closing, there
     shall have been no material adverse change (or event reasonably likely to
     result in a material adverse change) in the financial condition, assets,
     Business, operations, results of operation, cash flows or prospects of the
     Company or any of its Subsidiaries as determined in the reasonable
     discretion of the Buyer but excluding United States general economic
     conditions;

          (xiv)   Sellers shall have delivered to Buyer such documents and
     certificates of officers and public officials as shall be reasonably
     requested by Buyer's counsel to establish the existence and good standing
     of the Company and its Subsidiaries and the due authorization of this
     Agreement and the transactions contemplated hereby by Sellers;

          (xv)    Buyer shall have obtained from its Board of Directors (i) due
     authorization and approval of this Agreement, which is anticipated to be
     ten days after completion of due diligence and (ii) final authorization and
     approval of the transactions contemplated herein prior to Closing;

          (xvi)   Sellers shall deliver to Buyer at the Closing such other
     documents as shall be effective to vest in Buyer good and marketable title
     to the Company Shares, free and clear of any Security Interests,
     encumbrances or restrictions;

          (xvii)  Seller shall exercise good faith efforts to obtain all
     agreements, documents, instruments, consents, waivers, landlord estoppels,
     subordination agreements, payoff letters, financial statements and other
     items which are reasonably required by Buyer's counsel, lenders, or
     investment bankers in connection with Closing; and

          (xviii) all actions to be taken by Sellers in connection with
     consummation of the transactions contemplated hereby and all certificates,
     opinions, instruments, and other documents required to effect the
     transactions contemplated hereby will be reasonably satisfactory in form
     and substance to Buyer.

The Buyer may waive any condition specified in this Section 7(a) if it executes
a writing so stating at or prior to the Closing.

     (b)  Conditions to Obligation of the Sellers.  The obligation of Sellers to
          ---------------------------------------
consummate the transactions to be performed by them in connection with the
Closing is subject to satisfaction of the following conditions:

          (i)    the representations and warranties set forth in Section 3(b)
     above shall be true and correct in all material respects at and as of the
     Closing Date;

          (ii)   Buyer shall have performed and complied in all material
     respects with all of its covenants hereunder through the Closing;

          (iii)  no action, suit, or proceeding shall be pending or threatened
     before any court or quasi-judicial or administrative agency of any federal,
     state, local, or foreign

                                       34
<PAGE>

     jurisdiction or before any arbitrator wherein an unfavorable injunction,
     judgment, order, decree, ruling, or charge would (A) prevent consummation
     of any of the transactions contemplated by this Agreement or (B) cause any
     of the transactions contemplated by this Agreement to be rescinded
     following consummation (and no such injunction, judgment, order, decree,
     ruling, or charge shall be in effect);

          (iv)   Buyer shall have delivered to the Sellers a certificate to the
     effect that each of the conditions specified above in Section 7(b)(i)-(iii)
     is satisfied in all respects;

          (v)    all applicable waiting periods (and any extensions thereof)
     under the HSR Act shall have expired or otherwise been terminated and the
     Parties, the Company, and its Subsidiaries shall have received all other
     authorizations, consents, and approvals of governments and governmental
     agencies referred to in Section 3(a)(ii), Section 3(b)(ii), and Section
     4(c) above;

          (vi)   all applicable consents, permits and orders required by the
     FCC, the Georgia PSC and any other governmental authority shall have been
     obtained and become final;

          (vii)  Sellers shall have received from counsel to the Buyer an
     opinion in form and substance as set forth in Exhibit E attached hereto,
     addressed to Sellers, and dated as of the Closing Date;

          (viii) Buyer shall have delivered to Sellers such documents and
     certificates of officers and public officials as shall be reasonably
     requested by Seller's counsel to establish the existence and good standing
     of the Company and its Subsidiaries and the due authorization of this
     Agreement and the transactions contemplated hereby by Buyer;

          (ix)   Buyer and the members thereof shall have executed the limited
     liability operating agreement of Coastal Communications, LLC reflecting the
     understanding of the parties as outlined in the letter of intent between
     the parties dated October 5, 1999, thereby making provision for the
     transfer of the Coastal Communications Interest and for all rights and
     priorities relating to such interest; and

          (x)    all actions to be taken by Buyer in connection with
     consummation of the transactions contemplated hereby and all certificates,
     opinions, instruments, and other documents required to effect the
     transactions contemplated hereby will be reasonably satisfactory in form
     and substance to Sellers; and

          (xi)   Sellers shall be satisfied as to the ability of Buyer to
     fulfill its obligations under the limited liability operating agreement of
     Buyer prior to December 14, 1999, or this condition shall be satisfied.

The Sellers may waive any condition specified in this Section 7(b) if they
execute a writing so stating at or prior to the Closing.

                                       35
<PAGE>

     8.   Remedies for Breaches of This Agreement.
          ---------------------------------------

     (a)  Survival of Representations and Warranties. All of the representations
          ------------------------------------------
and warranties of the Sellers herein shall survive the Closing hereunder (even
if the Buyer knew or had reason to know of any misrepresentation or breach of
warranty at the time of Closing) and continue in full force and effect until
thirty (30) days following the date of delivery to Buyer of audited financial
statements for the first full year of ownership of the Company by Buyer
(currently estimated to be calendar year 2001 based upon a February 2000
Closing); provided, however., that the representations and warranties contained
in Section 3(a)(v) and Section 4(b) (related to the Company Shares and
capitalization), and Section 4(k) (related to tax matters shall survive the
Closing (even if the damaged Party knew or had reason to know of any
misrepresentation or breach of warranty at the time of Closing) and continue in
full force and effect thereafter (subject to any applicable statutes of
limitations).

     (b)  Indemnification Provisions for Benefit of the Buyer.
          ---------------------------------------------------

          (i)   In the event any of the Sellers breaches (or in the event any
     third party alleges facts that, if true, would mean any of the Sellers has
     breached) any of their representations, warranties, and covenants contained
     herein (except for any of his or its covenants in Section 2(a) above or any
     of his-or its representations and warranties in Section 3(a) above), and,
     if there is an applicable survival period pursuant to Section 8(a) above,
     provided that the Buyer makes a written claim for indemnification against
     the Sellers pursuant to Section 11(h) below within such survival period,
     then the Sellers agree to indemnify the Buyer from and against the entirety
     of any Adverse Consequences the Buyer may suffer through and after the date
     of the claim for indemnification (including any Adverse Consequences the
     Buyer may suffer after the end of any applicable survival period) resulting
     from, arising out of, relating to, in the nature of, or caused by the
     breach (or the alleged breach); provided, however, that the Sellers shall
     not have any obligation to indemnify the Buyer from and against any Adverse
     Consequences resulting from, arising out of, relating to, in the nature of,
     or caused by the breach (or alleged breach) of any representation or
     warranty of Sellers until Buyer has suffered Adverse Consequences by reason
     of all such breaches (or alleged breaches) in excess of a One Million
     Dollar ($1,000,000) aggregate threshold (at which point the Sellers will be
     obligated to indemnify the Buyer from and against all such Adverse
     Consequences relating back to the first dollar); and, provided further,
     however., any single Adverse Consequence which is less than Twenty-Five
     Thousand Dollars ($25,000) per occurrence shall not be counted toward such
     One Million Dollar ($ 1,000,000) aggregate threshold;

          (ii)   In the event any of the Sellers breaches (or in the event any
     third party alleges facts that, if true, would mean any of the Sellers has
     breached) any of his or its covenants in Section 2 above or any of his or
     its representations and warranties in Section 3(a) or Section 4(b) above,
     and, if there is an applicable survival period pursuant to Section 8(a)
     above, provided that the Buyer makes a written claim for indemnification
     against the Seller pursuant to Section 11(h) below within such survival
     period, then the Seller agrees to indemnify the Buyer from and against the
     entirety of any Adverse Consequences the Buyer may suffer through and after
     the date of the claim for

                                       36
<PAGE>

     indemnification (including any Adverse Consequences the Buyer may suffer
     after the end of any applicable survival period) resulting from, arising
     out of, relating to, in the nature of, or caused by the breach (or the
     alleged breach).

          (iii)  Each of the Sellers agrees to indemnify the Buyer from and
     against the entirety of any Adverse Consequences the Buyer may suffer
     resulting from, arising out of, relating to, in the nature of, or caused by
     any Liability of any of the Company and its Subsidiaries (x) for any Taxes
     of the Company and its Subsidiaries with respect to any Tax year or portion
     thereof ending on or before the Closing Date (or for any Tax year beginning
     before and ending after the Closing Date to the extent allocable
     (determined in a manner consistent with Section 9(c)) to the portion of
     such period beginning before and ending on the Closing Date), to the extent
     such Taxes are not reflected in the reserve for Tax Liability (rather than
     any reserve for deferred Taxes established to reflect timing differences
     between book and Tax income) shown on the face of the Closing Balance
     Sheet, and (y) for the unpaid Taxes of any Person (other than any of the
     Company and its Subsidiaries) under Reg. Section 1.1502-6 (or any similar
     provision of state, local, or foreign law), as a transferee or successor,
     by contract, or otherwise.

     (c)  Indemnification Provisions for Benefit of the Sellers.  In the event
          -----------------------------------------------------
the Buyer breaches (or in the event any third party alleges facts that, if true,
would mean the Buyer has breached) any of its representations, warranties, and
covenants contained herein, and, if there is an applicable survival period
pursuant to Section 8(a) above, provided that any of the Sellers makes a written
claim for indemnification against the Buyer pursuant to Section 11(h) below
within such survival period, then the Buyer agrees to indemnify each of the
Sellers from and against the entirety of any Adverse Consequences but not to
exceed the Purchase Price the Seller may suffer through and after the date of
the claim for indemnification (including any Adverse Consequences the Seller may
suffer after the end of any applicable survival period) resulting from, arising
out of, relating to, in the nature of, or caused by the breach (or the alleged
breach).

     (d)  Matters Involving Third Parties.
          -------------------------------

          (i)    If any third party shall notify any Party (the "Indemnified
     Party") with respect to any matter (a "Third Party Claim") which may give
     rise to a claim for indemnification against any other Party (the
     "Indemnifying Party") under this Section 8, then the Indemnified Party
     shall promptly notify each Indemnifying Party thereof in writing; provided,
     however, that no delay on the part of the Indemnified Party in notifying
     any Indemnifying Party shall relieve the Indemnifying Party from any
     obligation hereunder unless (and then solely to the extent) the
     Indemnifying Party thereby is prejudiced.

          (ii)   Any Indemnifying Party will have the right to defend the
     Indemnified Party against the Third Party Claim with counsel of its choice
     reasonably satisfactory to the Indemnified Party so long as (A) the
     Indemnifying Party notifies the Indemnified Party in writing within 15 days
     after the Indemnified Party has given notice of the Third Party Claim that
     the Indemnifying Party will indemnify the Indemnified Party from and
     against the entirety of any Adverse Consequences the Indemnified Party may
     suffer

                                       37
<PAGE>

     resulting from, arising out of, relating to, in the nature of, or caused by
     the Third Party Claim, (B) the Indemnifying Party provides the Indemnified
     Party with evidence reasonably acceptable to the Indemnified Party that the
     Indemnifying Party will have the financial resources to defend against the
     Third Party Claim and fulfill its indemnification obligations hereunder,
     (C) the Third Party Claim involves only money damages and does not seek an
     injunction or other equitable relief, (D) settlement of, or an adverse
     judgment with respect to, the Third Party Claim is not, in the good faith
     judgment of the Indemnified Party, likely to establish a precedential
     custom or practice adverse to the continuing business interests of the
     Indemnified Party, and (E) the Indemnifying Party conducts the defense of
     the Third Party Claim actively and diligently.

          (iii)  So long as the Indemnifying Party is conducting the defense of
     the Third Party Claim in accordance with Section 8(d)(ii) above, (A) the
     Indemnified Party may retain separate co-counsel at its sole cost and
     expense and participate in the defense of the Third Party Claim, (B) the
     Indemnified Party will not consent to the entry of any judgment or enter
     into any settlement with respect to the Third Party Claim without the prior
     written consent of the Indemnifying Party (not to be withheld
     unreasonably), and (C) the Indemnifying Party will not consent to the entry
     of any judgment or enter into any settlement with respect to the Third
     Party Claim without the prior written consent of the Indemnified Party (not
     to be withheld unreasonably).

          (iv)   In the event any of the conditions in Section 8(d)(ii) above is
     or becomes unsatisfied, however, (A) the Indemnified Party may defend
     against, and consent to the entry of any judgment or enter into any
     settlement with respect to, the Third Party Claim in any manner it
     reasonably may deem appropriate (and the Indemnified Party need not consult
     with, or obtain any consent from, any Indemnifying Party in connection
     therewith), (B) the Indemnifying Parties will reimburse the Indemnified
     Party promptly and periodically for the costs of defending against the
     Third Party Claim (including attorneys' fees and expenses), and (C) the
     Indemnifying Parties will remain responsible for any Adverse Consequences
     the Indemnified Party may suffer resulting from, arising out of, relating
     to, in the nature of, or caused by the Third Party Claim to the fullest
     extent provided in this Section 8.

     (e)  Determination of Adverse Consequences.  The Parties shall take into
          -------------------------------------
account the time cost of money (using the Applicable Rate as the discount rate)
in determining Adverse Consequences for purposes of this Section 8. All
indemnification payments under this Section 8 shall be deemed adjustments to the
Purchase Price.

     (f)  Other Indemnification Provisions.  The foregoing indemnification
          --------------------------------
provisions are in addition to, and not in derogation of, any statutory,
equitable, or common law remedy (including, without limitation, any such remedy
arising under Environmental, Health, and Safety Requirements) any Party may have
with respect to the Company, its Subsidiaries, or the transactions contemplated
by this Agreement. Each of the Sellers hereby agrees that he, she or it will not
make any claim for indemnification against any of the Company and its
Subsidiaries by reason of the fact that he, she or it was a director, officer,
employee, or agent of any such entity or was serving at the request of any such
entity as a partner, trustee, director, officer, employee,

                                       38
<PAGE>

or agent of another entity (whether such claim is for judgments, damages,
penalties, fines, costs, amounts paid in settlement, losses, expenses, or
otherwise and whether such claim is pursuant to any statute, charter document,
bylaw, agreement, or otherwise) with respect to any action, suit, proceeding,
complaint, claim, or demand brought by the Buyer against such Seller (whether
such action, suit, proceeding, complaint, claim, or demand is pursuant to this
Agreement, applicable law, or otherwise).

     (g)  Indemnification Coverage.  For purposes of the indemnification
          ------------------------
obligations of Buyer and Seller hereunder, an indemnification of Buyer or Seller
shall include each parties directors, officers, employees, agents, trustees,
Affiliates, partners, successors and assigns.

     (h)  Limitation on Indemnity. The indemnification obligation of the Sellers
          -----------------------
shall not exceed Twenty-One Million Dollars ($21,000,000) plus the Sellers'
member interests in Coastal Communications, LLC. Buyer shall have the right to
offset Sellers' liability under their indemnification obligation against
Sellers' member interests in Coastal Communications, LLC.  Each Seller agrees
not to transfer to a third party an amount in excess of his or its pro-rata
share of the $21,000,000 referenced in this section, except for valuable
consideration, during the term of the indemnity obligation hereunder; provided
that Sellers shall not be prevented by this section from engaging in good faith
estate planning or addressing tax liability.

     9.   Tax Matters.  The following provisions shall govern the allocation of
          -----------
responsibility as between Buyer and Sellers for certain tax matters following
the Closing Date:

     (a)  Tax Periods Ending on or Before the Closing Date. Buyer shall prepare
          ------------------------------------------------
or cause to be prepared and file or cause to be filed all Tax Returns for the
Company and its Subsidiaries for all periods ending on or prior to the Closing
Date which are filed after the Closing Date other than income Tax Returns with
respect to periods for which a consolidated, unitary or combined income Tax
Return of Seller will include the operations of the Company and its
Subsidiaries.  Buyer shall permit Sellers to review and comment on each such Tax
Return described in the preceding sentence prior to filing. Sellers shall
reimburse Buyer for Taxes of the Company and its Subsidiaries with respect to
such periods within fifteen (15) days after payment by Buyer or the Company and
its Subsidiaries of such Taxes to the extent such Taxes are not reflected in the
reserve for Tax Liability (rather than any reserve for deferred Taxes
established to reflect timing differences between book and Tax income) shown on
the face of the Closing Balance Sheet.

     (b)  Tax Periods Beginning Before and Ending After the Closing Date.  Buyer
          --------------------------------------------------------------
shall prepare or cause to be prepared and file or cause to be filed any Tax
Returns of the Company and its Subsidiaries for Tax periods which begin before
the Closing Date and end after the Closing Date. Sellers shall pay to Buyer
within fifteen (15) days after the date on which Taxes are paid with respect to
such periods an amount equal to the portion of such Taxes which relates to the
portion of such Taxable period ending on the Closing Date to the extent such
Taxes are not reflected in the reserve for Tax Liability (rather than any
reserve for deferred Taxes established to reflect timing differences between
book and Tax income) shown on the face of the Closing Balance Sheet. For
purposes of this Section, in the case of any Taxes that are imposed on a
periodic basis and are payable for a Taxable period that includes (but does not
end on) the Closing Date, the portion of such Tax which relates to the portion
of such Taxable period ending

                                       39
<PAGE>

on the Closing Date shall (x) in the case of any Taxes other than Taxes based
upon or related to income or receipts, be deemed to be the amount of such Tax
for the entire Taxable period multiplied by a fraction the numerator of which is
the number of days in the Taxable period ending on the Closing Date and the
denominator of which is the number of days in the entire Taxable period, and (y)
in the case of any Tax based upon or related to income or receipts be deemed
equal to the amount which would be payable if the relevant Taxable period ended
on the Closing Date. Any credits relating to a Taxable period that begins before
and ends after the Closing Date shall be taken into account as though the
relevant Taxable period ended on the Closing Date. All determinations necessary
to give effect to the foregoing allocations shall be made in a manner consistent
with prior practice of the Company and its Subsidiaries.

     (c)  Cooperation on Tax Matters.
          --------------------------

          (i)    Buyer, the Company and its Subsidiaries and Sellers shall
     cooperate fully, as and to the extent reasonably requested by the other
     party, in connection with the filing of Tax Returns pursuant to this
     Section and any audit, litigation or other proceeding with respect to
     Taxes. Such cooperation shall include the retention and (upon the other
     party's request) the provision of records and information which are
     reasonably relevant to any such audit, litigation or other proceeding and
     making employees available on a mutually convenient basis to provide
     additional information and explanation of any material provided hereunder.
     The Company and its Subsidiaries and Sellers agree (A) to retain all books
     and records with respect to Tax matters pertinent to the Company and its
     Subsidiaries relating to any taxable period beginning before the Closing
     Date until the expiration of the statute of limitations (and, to the extent
     notified by Buyer or Sellers, any extensions thereof) of the respective
     taxable periods, and to abide by all record retention agreements entered
     into with any taxing authority, and (B) to give the other party reasonable
     written notice prior to transferring, destroying or discarding any such
     books and records and, if the other party so requests, the Company and its
     Subsidiaries or Sellers, as the case may be, shall allow the other party to
     take possession of such books and records.

          (ii)   Buyer and Sellers further agree, upon request, to use their
     best efforts to obtain any certificate or other document from any
     governmental authority or any other Person as may be necessary to mitigate,
     reduce or eliminate any Tax that could be imposed (including, but not
     limited to, with respect to the transactions contemplated hereby).

          (iii)  Buyer and Sellers further agree, upon request, to provide the
     other party with all information that either party may be required to
     report pursuant to Section 6043 of the Code and all Treasury Department
     Regulations promulgated thereunder.

     (d)  Tax Sharing Agreements.  All tax sharing agreements or similar
          ----------------------
agreements with respect to or involving the Company and its Subsidiaries shall
be terminated as of the Closing Date and, after the Closing Date, the Company
and its Subsidiaries shall not be bound thereby or have any liability
thereunder.

                                       40
<PAGE>

     (e)  Certain Taxes. All transfer, documentary, sales, use, stamp,
          -------------
registration and other such Taxes and fees (including any penalties and
interest) incurred in connection with this Agreement shall be paid by Sellers
when due, and Sellers will, at their own expense, file all necessary Tax Returns
and other documentation with respect to all such transfer, documentary, sales,
use, stamp, registration and other Taxes and fees, and, if required by
applicable law, Buyer will, and will cause its Affiliates to, join in the
execution of any such Tax Returns and other documentation.

     10.  Termination.
          -----------

     (a)  Termination of Agreement.  Certain of the Parties may terminate this
          ------------------------
Agreement as provided below:

          (i)    Buyer and Sellers may terminate this Agreement by mutual
     written consent at any time prior to the Closing;

          (ii)   Buyer may terminate this Agreement by giving written notice to
     Sellers on or before December 14, 1999, if the Buyer is not reasonably
     satisfied with the results of its continuing business, legal,
     environmental, and accounting due diligence regarding the company and its
     subsidiaries.

          (iii)  Buyer may terminate this Agreement by giving written notice to
     Sellers at any time prior to the Closing (A) in the event any of Sellers
     has breached any material representation, warranty, or covenant contained
     in this Agreement in any material respect, the Buyer has notified Sellers
     of the breach, and the breach has continued without cure for a period of 30
     days after the notice of breach or (B) if the Closing shall not have
     occurred on or before June 1, 2000, by reason of the failure of any
     condition precedent under Section 7(a) hereof (unless the failure results
     primarily from the Buyer itself breaching any representation, warranty, or
     covenant contained in this Agreement); and

          (iv)   Sellers may terminate this Agreement by giving written notice
     to Buyer at any time prior to the Closing (A) in the event Buyer has
     breached any material representation, warranty, or covenant contained in
     this Agreement in any material respect, any of Sellers has notified Buyer
     of the breach, and the breach has continued without cure for a period of 30
     days after the notice of breach or (B) if the Closing shall not have
     occurred on or before June 1, 2000, by reason of the failure of any
     condition precedent under Section 7(b) hereof (unless the failure results
     primarily from any of the Sellers themselves breaching any representation,
     warranty, or covenant contained in this Agreement).

     (b)  Effect of Termination. If any Party terminates this Agreement pursuant
          ---------------------
to Section 10(a) above, all rights and obligations of the Parties hereunder
shall terminate without any Liability of any Party to any other Party (except
for any Liability of any Party then in breach).

                                       41
<PAGE>

     11.  Miscellaneous.
          -------------

          (a)  Nature of Certain Obligations.
               -----------------------------

          (i)    The covenants of each of the Sellers in Section 2(a) above
     concerning the sale of his or its Company Shares to Buyer and the
     representations and warranties of each of the Sellers in Section 3(a) above
     concerning the transaction are several obligations.  This means that the
     particular Seller making the representation, warranty, or covenant will be
     solely responsible to the extent provided in Section 8 above for any
     Adverse Consequences the Buyer may suffer as a result of any breach
     thereof.

          (ii)    The remainder of the representations, warranties, and
     covenants in this Agreement are joint and several obligations. This means
     that each Seller will be responsible to the extent provided in Section 8
     above for the entirety of any Adverse Consequences Buyer may suffer as a
     result of any breach thereof.

     (b)  Press Releases and Public Announcements.  No Party shall issue any
          ---------------------------------------
press release or make any public announcement relating to the subject matter of
this Agreement prior to the Closing without the prior written approval of Buyer
and Sellers; provided, however, that any Party may make any public disclosure it
believes in good faith is required by applicable law or any listing or trading
agreement concerning its publicly-traded securities (in which case the
disclosing Party will use its best efforts to advise the other Parties prior to
making the disclosure).

     (c)  No Third-Party Beneficiaries. This Agreement shall not confer any
          ----------------------------
rights or remedies upon any Person other than the Parties, the parties
designated in Section 9(g) and their respective successors and permitted
assigns.

     (d)  Entire Agreement.  This Agreement (including the documents referred to
          ----------------
herein) and the limited liability operating agreement of Buyer reflecting the
understanding of the parties as outlined in the letter of intent between the
parties dated October 5, 1999 to be executed will constitute the entire
agreement among the Parties and shall supersede any prior understandings,
agreements, or representations by or among the Parties, written or oral, to the
extent they related in any way to the subject matter hereof.

     (e)  Succession and Assignment.  This Agreement shall be binding upon and
          -------------------------
inure to the benefit of the Parties named herein and their respective successors
and permitted assigns. No Party may assign either this Agreement or any of his
or its rights, interests, or obligations hereunder without the prior written
approval of the Buyer and Sellers; provided, however, that Buyer may (i) assign
any or all of its rights and interests hereunder to one or more of its
Affiliates or its lenders and (ii) designate one or more of its Affiliates to
perform its obligations hereunder (in any or all of which cases the Buyer
nonetheless shall remain responsible for the performance of all of its
obligations hereunder).

                                       42
<PAGE>

     (f)  Counterparts.  This Agreement may be executed in one or more
          ------------
counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument.

     (g)  Headings.  The section headings contained in this Agreement are
          --------
inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

     (h)  Notices.  All communications or notices required or permitted by this
          -------
Agreement shall be in writing and shall be deemed to have been given at the
earlier of the date when actually delivered to an officer of the other party, or
when sent by confirmed telecopy or facsimile machine to the number shown below,
or when properly deposited for delivery by a nationally recognized commercial
overnight delivery service, prepaid, or by deposit in the United States mail,
certified or registered mail, postage prepaid, return receipt requested, and
addressed as follows, unless and until either of such parties notifies the other
in accordance with this Section of a change of address or change of telecopy
number:

          If to Buyer:

               Coastal Communications, LLC
               103 South Fifth Street
               Mebane, North Carolina 27302
               Attn: Paul H. Sunu, Manager
               Telephone: (919) 563-8222
               Telecopier: (919) 563-4993

          With a copy to:

               Madison River Telephone Company, LLC
               103 South Fifth Street
               Mebane, North Carolina 27302
               Attn: Bruce F. Metge, Esq., General Counsel
               Telephone: (919) 563-8247
               Telecopier: (919) 563-4993

               Wyrick Robbins Yates & Ponton LLP
               4101 Lake Boone Trail, Suite 300
               Raleigh, North Carolina 27607
               Attn: Larry E. Robbins, Esq.
               Telephone: (919) 781-4000
               Telecopier: (919) 781-4865

                                       43
<PAGE>

          If to Sellers:

               Daniel M. Bryant
               Post Office Box 280
               Hinesville, GA 313 10
               Telephone: (912) 877-1955

               G. Allan Bryant
               305 East Charlton
               Savannah, GA 31401
               Telephone: (912) 234-6539

               The Michael E. Bryant Life Trust
               103 North Main Street
               Hinesville, GA 31313
               Telephone: (912) 369-8000
               Telecopier: (912) 368-2618

          With a copy to:

               Thomas J. Ratcliffe, Jr., Esq.
               103 North Main Street
               Hinesville, Georgia 31313
               Telephone: (912) 369-8000
               Telecopier: (912) 368-2618

     (i)  Governing Law.  This Agreement shall be governed by and construed in
          -------------
accordance with the domestic laws of the State of Georgia without giving effect
to any choice or conflict of law provision or rule (whether of the State of
Georgia or any other jurisdiction) that would cause the application of the laws
of any jurisdiction other than the State of Georgia.

     (j)  Amendments and Waivers.  No amendment of any provision of this
          ----------------------
Agreement shall be valid unless the same shall be in writing and signed by the
Buyer and Sellers. No waiver by any Party of any default, misrepresentation, or
breach of warranty or covenant hereunder, whether intentional or not, shall be
deemed to extend to any prior or subsequent default, misrepresentation, or
breach of warranty or covenant hereunder or affect in any way any rights arising
by virtue of any prior or subsequent such occurrence.

     (k)  Severability.  Any term or provision of this Agreement that is invalid
          ------------
or unenforceable in any situation in any jurisdiction shall not affect the
validity or enforceability of the remaining terms and provisions hereof or the
validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

     (1)  Expenses.  Except as otherwise provided herein, or except as consented
          --------
to by Buyer, each of the Parties, the Company, and its Subsidiaries will bear
his or its own costs and expenses (including legal fees and expenses) incurred
in connection with this Agreement and the

                                       44
<PAGE>

transactions contemplated hereby. The Sellers agree that none of the Company and
its Subsidiaries has borne or will bear any of the Sellers' costs and expenses
(including any of their legal fees and expenses) in connection with this
Agreement or any of the transactions contemplated hereby.

     (m)  Construction. The Parties have participated jointly in the negotiation
          ------------
and drafting of this Agreement. In the event an ambiguity or question of intent
or interpretation arises, this Agreement shall be construed as if drafted
jointly by the Parties and no presumption or burden of proof shall arise
favoring or disfavoring any Party by virtue of the authorship of any of the
provisions of this Agreement. Any reference to any federal, state, local, or
foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise. The
word "including" shall mean including, without limitation. The Parties intend
that each representation, warranty, and covenant contained herein shall have
independent significance. If any Party has breached any representation,
warranty, or covenant contained herein in any respect, the fact that there
exists another representation, warranty, or covenant relating to the same
subject matter (regardless of the relative levels of specificity) which the
Party has not breached shall not detract from or mitigate the fact that the
Party is in breach of the first representation, warranty, or covenant.

     (n)  Incorporation of Exhibits and Disclosure Schedule.  The Exhibits and
          -------------------------------------------------
Disclosure Schedule identified in this Agreement are incorporated herein by
reference and made a part hereof.

     (o)  Specific Performance. Each of the Parties acknowledges and agrees that
          --------------------
the other Parties would be damaged irreparably in the event any of the
provisions of this Agreement are not performed in accordance with their specific
terms or otherwise are breached. Accordingly, each of the Parties agrees that
the other Parties shall be entitled to an injunction or injunctions to prevent
breaches of the provisions of this Agreement and to enforce specifically this
Agreement and the terms and provisions hereof in any action instituted in any
court of the United States or any state thereof having jurisdiction over the
Parties and the matter (subject to the provisions set forth in Section 10(p)
below), in addition to any other remedy to which they may be entitled, at law or
in equity.

     (p)  Submission to Jurisdiction.  Each of the Parties submits to the
          --------------------------
jurisdiction of any federal court sitting in Atlanta, Georgia in any action or
proceeding arising out of or relating to this Agreement and agrees that all
claims in respect of the action or proceeding may be heard and determined in any
such courts. Each Party also agrees not to bring any action or proceeding
arising out of or relating to this Agreement in any other court. Each of the
Parties waives any defense of inconvenient forum to the maintenance of any
action or proceeding so brought and waives any bond, surety, or other security
that might be required of any other Party with respect thereto. Each Seller
appoints Thomas R. Ratcliffe, Jr., Esq. (the "Process Agent") as his or its
agent to receive on his or its behalf service of copies of the summons and
complaint and any other process that might be served in the action or
proceeding. Any Party may make service on any other Party by sending or
delivering a copy of the process (i) to the Party to be served at the address
and in the manner provided for the giving of notices in Section 10(h) above or
(ii) in the case of the Sellers, to the Party to be served in care of the
Process Agent at the address and in the

                                       45
<PAGE>

manner provided for the giving of notices in Section 10(h) above. Each Party
agrees that a final judgment in any action or proceeding so brought shall be
conclusive and may be enforced by suit on the judgment or in any other manner
provided by law or at equity and in any appropriate jurisdiction.

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

                                   MRTC:

                                   MADISON RIVER TELEPHONE COMPANY,
                                   LLC

                                   By:  PAUL H. SUNU
                                       --------------------------------------
                                        Name:  Paul H. Sunu
                                        Title: Manager

                                   BUYER:
                                   ------

                                   COASTAL COMMUNICATIONS, LLC

                                   By:  PAUL H. SUNU
                                      ---------------------------------------
                                        Name: Paul H. Sunu
                                        Title: Manager

                                   SELLERS:
                                   --------

                                     DANIEL M. BRYANT                (SEAL)
                                   ----------------------------------
                                   Daniel M. Bryant

                                     G. ALLAN BRYANT                 (SEAL)
                                   ----------------------------------
                                   G. Allan Bryant

                                   THE MICHAEL E. BRYANT LIFE TRUST

                                   By:   G. ALLAN BRYANT            (SEAL)
                                      ------------------------------
                                      Co-Trustee

                                   By:   DANIEL M. BRYANT           (SEAL)
                                      ------------------------------
                                      Co-Trustee

                                   By:   THOMAS J. RATCLIFFE, JR.   (SEAL)
                                      ------------------------------
                                      Co-Trustee

                                       46
<PAGE>

                                   COMPANY:
                                   --------

                                   COASTAL UTILITIES, INC.

                                   By:   JAMES M. JOHNSON
                                       ------------------------------------
                                        Name: James M. Johnson
                                        Title: President and CEO

                                       47
<PAGE>

                                   EXHIBIT A
                                   ---------

                                  DEFINITIONS

     "Access Line" means any telephone line of the Business that is assigned a
     -------------
customer account.

     "Accountants" has the meaning set forth in Section 2(e)(ii) below.
     -------------

     "Accounts Payable" means all accounts payable of the Company and its
     ------------------
Subsidiaries as determined in accordance with GAAP.

     "Accounts Receivable" means all accounts receivable of the Company and its
     ---------------------
Subsidiaries as determined in accordance with GAAP.

     "Accredited Investor" has the meaning set forth in Regulation D promulgated
     ---------------------
under the Securities Act.

     "Adverse Consequences" means all actions, suits, proceedings, hearings,
     ----------------------
investigations, charges, complaints, claims, demands, injunctions, judgments,
orders, decrees, rulings, damages, dues, penalties, fines, costs, amounts paid
in settlement, Liabilities, obligations, Taxes, liens, losses, expenses, and
fees, including court costs, attorneys' fees and expenses.

     "Affiliate" has the meaning set forth in Rule l2b-2 of the regulations
     -----------
promulgated under the Securities Exchange Act.

     "Affiliated Group" means any affiliated group within the meaning of Code
     ------------------
Section 1504(a) or any similar group defined under a similar provision of state,
local or foreign law.

     "Agreement" means this Stock Purchase Agreement, together with the
     -----------
Schedules and Exhibits attached hereto, as the same shall be amended and/or
supplemented from time to time in accordance with the terms hereof.

     "Applicable Rate" means the prime rate of interest publicly announced from
     -----------------
time to time in the Wall Street Journal.

     "Basis" means any past or present fact, situation, circumstance, status,
     -------
condition, activity, practice, plan, occurrence, event, incident, action,
failure to act, or transaction that forms or could form the basis for any
specified consequence.

     "Business" has the meaning set forth in the preamble above.
     ----------

     "Buyer" has the meaning set forth in the preamble above.
     -------
<PAGE>

     "CCL Class A Member Interest" shall mean a membership interest in Buyer
     -----------------------------
having the rights, preferences and duties of a Class A Member Interest as set
forth in the Limited Liability Company Agreement of the Buyer.

     "CCL Class B Member Interest" shall mean a membership interest in Buyer
     -----------------------------
having the rights, preferences and duties of a Class B Member Interest as set
forth in the Limited Liability Company Agreement of the Buyer.

     "CCL Class C Member Interest" shall mean a membership interest in Buyer
     -----------------------------
having the rights, preferences and duties of a Class C Member Interest as set
forth in the Limited Liability Company Agreement of the Buyer.

     "Closing" has the meaning set forth in Section 2(c) below.
     ---------

     "Closing Date" has the meaning set forth in Section 2(c) below.
     --------------

     "Coastal Communications Interest" shall mean the equity portion of the
     ---------------------------------
Consideration to be received by Sellers pursuant to Section 2 hereof, which
shall be comprised of (i) a CCL Class A Member Interest with an initial capital
account value of Ten Million Dollars ($ 10,000,000) and (ii) a CCL Class B
Member Interest with an initial capital account of Five Million Dollars
($5,000,000) and having such rights, obligations and priorities as are to be set
forth in the limited liability operating agreement of Buyer.

     "Code" means the Internal Revenue Code of 1986, as amended.
     ------

     "COBRA" means the requirements of Part 6 of Subtitle B of Title I of ERISA
     -------
and Code Section 4980B.

     "Company" has the meaning set forth in the preamble above.
     ---------

     "Company Share" means any share of the Class A and Class B Common Stock,
     ---------------
par value $10.00 per share of the Company, and any share of the Class A and
Class B Preferred Stock, par value $ 100.00 per share, of the Company.

     "Confidential Information" means any information concerning the Businesses
     --------------------------
and affairs of the Company and its Subsidiaries that is not already generally
available to the public.

     "Control" (including, with correlative meanings, the terms "Controlled by,"
     ---------
"Controlling" and "under common Control with"), as used with respect to any
Person, shall mean the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of such Person,
whether through ownership of voting securities, by contract or otherwise.

     "Controlled Group" has the meaning set forth in Code Section 1563.
     ------------------

                                       2
<PAGE>

     "Deferred Intercompany Transaction" has the meaning set forth in Reg.
     -----------------------------------
Section 1.1502-13.

     "Disclosure Schedule" has the meaning set forth in Section 4 below.
     ---------------------

     "Employee Benefit Plan" means any (a) nonqualified deferred compensation or
     -----------------------
retirement plan or arrangement, (b) qualified defined contribution retirement
plan or arrangement which is an Employee Pension Benefit Plan, (c) qualified
defined benefit retirement plan or arrangement which is an Employee Pension
Benefit Plan (including any Multiemployer Plan), or (d) Employee Welfare Benefit
Plan or material fringe benefit or other retirement, bonus, or incentive plan or
program.

     "Employee Pension Benefit Plan" has the meaning set forth in ERISA Section
     -------------------------------
3(2).

     "Employee Welfare Benefit Plan" has the meaning set forth in ERISA Section
     -------------------------------
3(l).

     "Environmental, Health, and Safety Requirements" shall mean all federal,
     ------------------------------------------------
state, local and foreign statutes, regulations, ordinances and other provisions
having the force or effect of law, all judicial and administrative orders and
determinations, all contractual obligations and all common law concerning public
health and safety, worker health and safety, and pollution or protection of the
environment, including, without limitation, all those relating to the presence,
use, production, generation, handling, transportation, treatment, storage,
disposal, distribution, labeling, testing, processing, discharge, release,
threatened release, control, or cleanup of any hazardous materials, substances
or wastes, chemical substances or mixtures, pesticides, pollutants,
contaminants, toxic chemicals, petroleum products or byproducts, asbestos,
polychlorinated biphenyls, noise or radiation, each as amended and as now or
hereafter in effect.

     "Equipment" means all hardware, network equipment, switches, fiber optics,
     -----------
machinery, equipment, furniture, fixtures, furnishings, parts and other items of
tangible personal property used or useable in the conduct of the Business of the
Company and its Subsidiaries.

     "ERISX" means the Employee Retirement Income Security Act of 1974, as
     -------
amended.

     "ERISA Affiliate" means each entity which is treated as a single employer
     -----------------
with Seller for purposes of Code Section 414.

     "Excess Loss Account" has the meaning set forth in Reg. Section 1. 1502-19.
     ---------------------

     "FCC" means the Federal Communications Commission.
     -----

     "Fiduciary" has the meaning set forth in ERISA Section 3(21).
     -----------

     "Final Closing Date Report" shall have the meaning set forth in Section
     ---------------------------
2(e)(i) below.

     "Financial Statement" has the meaning set forth in Section 4(g) below.
     ---------------------

                                       3
<PAGE>

     "GAAP" means generally accepted accounting principles applied on a basis
     ------
consistent with preceding years and throughout the periods involved.

     "Georgia PSC" means the Georgia Public Service Commission and any other
     -------------
similar or related Georgia regulatory agency.

     "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of 1976,
     ---------
as amended, and the regulations promulgated thereunder.

     "Indemnified Party" has the meaning set forth in Section 8(d) below.
     -------------------

     "Indemnifying Party" has the meaning set forth in Section 8(d) below.
     --------------------

     "Intellectual Property" means (a) all inventions (whether patentable or
     -----------------------
unpatentable and whether or not reduced to practice), all improvements thereto,
and all patents, patent applications, and patent disclosures, together with all
reissuances, continuations, continuations-in-part, revisions, extensions, and
reexaminations thereof, (b) all trademarks, service marks, trade dress, logos,
trade names, and corporate names, together with all translations, adaptations,
derivations, and combinations thereof and including all goodwill associated
therewith, and all applications, registrations, and renewals in connection
therewith, (c) all copyrightable works, all copyrights, and all applications,
registrations, and renewals in connection therewith, (d) all mask works and all
applications, registrations, and renewals in connection therewith, (e) all trade
secrets and confidential business information (including ideas, research and
development, know-how, formulas, compositions, manufacturing and production
processes and techniques, technical data, designs, drawings, specifications,
customer and supplier lists, pricing and cost information, and business and
marketing plans and proposals), (f) all computer software (including data and
related documentation), (g) all other proprietary rights, and (h) all copies and
tangible embodiments thereof (in whatever form or medium).

     "Inventory" means all raw materials, work-in-process and finished products,
     -----------
including inventory in transit and other assets used to support the operation of
the Business, each of such items as used in the conduct of the Business of the
Company and its Subsidiaries.

     "Knowledge" means actual knowledge after reasonable investigation.
     -----------

     "Liability" means any liability (whether known or unknown, whether asserted
     -----------
or unasserted, whether absolute or contingent, whether accrued or uncured,
whether liquidated or unliquidated, and whether due or to become due), including
any liability for Taxes.

     "Long Term Debt" means (i) all indebtedness for borrowed money; (ii) that
     ----------------
portion of Capital leases that is properly classified as a liability on a
balance sheet in accordance with GAAP; (iii) notes payable and drafts accepted
representing extensions of credit whether or not representing obligations for
borrowed money; (iv) any obligation for all or any part of the deferred purchase
price of property or services, all liabilities, secured by any lien or any
property; -any letter of credit; any prepayment penalties; any earn out or
deferred portion of the purchase price of any tangible or intangible assets; any
noncompetition obligation; any taxes, and

                                       4
<PAGE>

any other obligation required to be included in the long term debt section of
the Company's balance sheet as determined in accordance with GAAP. Sellers shall
be entitled to reduce this amount to reflect a credit for RTFC stock in an
amount not to exceed $1,800,000.

     "Most Recent Balance Sheet" means the balance sheet contained within the
     ---------------------------
Most Recent Financial Statements.

     "Most Recent Financial Statements" has the meaning set forth in Section
     ----------------------------------
4(g) below.

     "Most Recent Fiscal Month End" has the meaning set forth in Section 4(g)
     ------------------------------
below.

     "Most Recent Fiscal Year End" has the meaning set forth in Section 4(g)
     -----------------------------
below.

     "Multiemployer Plan" has the meaning set forth in ERISA Section 3(37).
     --------------------

     "Net Worth" means the tangible assets of the Company less the Company's
     -----------
liabilities.

     "Noncompetition Agreements" shall mean noncompetition agreements to be
     ---------------------------
executed by senior officers of the Company and all shareholders effective as of
the date of execution of this Agreement.

     "Ordinary Course of Business" means the ordinary course of business
     -----------------------------
consistent with past custom and practice (including with respect to quantity and
frequency).

     "Party" has the meaning set forth in the preamble above.
     -------

     "PBGC" means the Pension Benefit Guaranty Corporation.
     ------

     "Person" means an individual, a partnership, a corporation, an association,
     --------
a joint stock company, a trust, a joint venture, an unincorporated organization,
or a governmental entity (or any department, agency, or political subdivision
thereof).

     "Process Agent" has the meaning set forth in Section 10(p) below.
     ---------------

     "Prohibited Transaction" has the meaning set forth in ERISA Section 406 and
     ------------------------
Code Section 4975.

     "Purchase Price" has the meaning set forth in Section 2(b) below.
     ----------------

     "Reportable Event" has the meaning set forth in ERISA Section 4043.
     ------------------

     "Securities Act" means the Securities Act of 1933, as amended.
     ----------------

     "Securities Exchange Act" means the Securities Exchange Act of 1934, as
     -------------------------
amended.

                                       5
<PAGE>

     "Security Interest" means any mortgage, pledge, lien, encumbrance, charge,
     -------------------
or other security interest, other than (a) mechanic's, materialmen's, and
similar liens, (b) liens for Taxes not yet due and payable, (c) purchase money
liens and liens securing rental payments under capital lease arrangements, and
(d) other liens arising in the Ordinary Course of Business and not incurred in
connection with the borrowing of money.

     "Seller" has the meaning set forth in the preamble above.
     --------

     "Subsidiary" means any corporation with respect to which a specified Person
     ------------
(or a Subsidiary thereof) owns a majority of the common stock or has the power
to vote or direct the voting of sufficient securities to elect a majority of the
directors.

     "Survey" has the meaning set forth in Section 5(i) below.
     --------

     "Tax" means any federal, state, local, or foreign income, gross receipts,
     -----
license, payroll, employment, excise, severance, stamp, occupation, premium,
windfall profits, environmental (including taxes under Code Section 59A),
customs duties, capital stock, franchise, profits, withholding, social security
(or similar), unemployment, disability, real property, personal property, sales,
use, transfer, registration, value added, alternative or add-on minimum,
estimated, or other tax of any kind whatsoever, including any interest, penalty,
or addition thereto, whether disputed or not.

     "Tax Return" means any return, declaration, report, claim for refund, or
     ------------
information return or statement relating to Taxes, including any schedule or
attachment thereto, and including any amendment thereof.

     "Third Party Claim" has the meaning set forth in Section 8(d) below.
     -------------------

                                       6

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