Document:

Exhibit 10.8.7

 EXHIBIT 10.8.7 
  
 SECOND AMENDMENT TO THE SCHEDULES AND THE LEASES 
  
 AMENDMENT TO THE SCHEDULES AND THE LEASES (this “Amendment”), dated as of October 6, 2003, among
Interstate FiberNet, Inc., as a lessee (“FiberNet”), and ITC^DeltaCom Communications, Inc., as a lessee (“Communications”; FiberNet and Communications individually a “Lessee” and collectively the
“Lessees”), NTFC Capital Corporation (“NTFC”) and General Electric Capital Corporation (“GECC”; NTFC and GECC individually a “Lessor” and collectively the
“Lessors”). 
  
 PRELIMINARY STATEMENTS:

  
 (a) Lessees and NTFC have entered into a Master Lease
Agreement dated December 29, 2000 (as heretofore amended, supplemented or otherwise modified, and including the NTFC Lease Schedules (as hereinafter defined) and the other schedules and attachments thereto, the “NTFC Lease”).
Capitalized terms not otherwise defined in this Amendment have the same meanings as specified in the NTFC Lease or in the GECC Lease (as hereinafter defined), as applicable. 
  
 (b) Communications and NTFC have entered into Equipment Schedule No. 1 dated December 29, 2000 (as amended as of October 29,
2002), Equipment Schedule No. 3 dated April 6, 2001, and Equipment Schedule No. 8 dated December 21, 2001, and FiberNet and NTFC have entered into Equipment Schedule No. 2 dated December 29, 2000, Equipment Schedule No. 4 dated April 6, 2001,
Equipment Schedule No. 5 dated September 28, 2001, Equipment Schedule No. 6 dated September 28, 2001, and Equipment Schedule No. 7 dated December 21, 2001 (as heretofore amended, supplemented or otherwise modified, individually a “NTFC Lease
Schedule” and collectively, the “NTFC Lease Schedules”). 
  
 (c) GECC and Communications have entered into a Master Lease Agreement dated December 31, 2001 (as heretofore amended, supplemented or otherwise modified, and including the GECC Lease Schedule (as hereinafter defined)
and the other schedules and attachments thereto, the “GECC Lease”; the GECC Lease and the NTFC Lease, individually a “Lease” and collectively the “Leases”). 
  
 (d) GECC and Communications have entered into an Equipment Schedule dated
December 31, 2001 (as heretofore amended, supplemented or otherwise modified, the “GECC Lease Schedule”; the GECC Lease Schedule and the NTFC Lease Schedules, individually a “Schedule” and collectively the
“Schedules”). 
  
 (e) At the request of Lessees,
Lessees and Lessors previously amended the Schedules and the Leases pursuant to an Amendment to the Schedules and the Leases dated as of October 29, 2002. 

 (f) Pursuant to an Agreement and Plan of Merger dated as of July 2, 2003, as amended (the “Merger
Agreement”) among ITC^DeltaCom, Inc. (the “Parent”), BTI Telecom Corp. (“BTI”) and certain other persons party thereto, the Parent is indirectly acquiring all of the outstanding shares of capital stock of
BTI, as a result of which all of the capital stock of BTI and its subsidiaries will become directly or indirectly owned and controlled by the Parent, and all of the business and operations of BTI and its subsidiaries will be controlled and conducted
by the Parent. 
  
 (g) In connection with the transactions
contemplated by the Merger Agreement, the Parent and its subsidiaries, including BTI and its subsidiaries, are entering into a Second Amended and Restated Credit Agreement, dated as of October 2, 2003 with Wells Fargo Bank Minnesota, National
Association, as administrative agent and collateral agent, and the other financial institutions party thereto (as amended, supplemented or otherwise modified from time to time, the “Senior Credit Agreement”). 
  
 (h) In connection with the transactions contemplated by the Merger Agreement,
the Parent and its subsidiaries, including BTI and its subsidiaries, are entering into a Credit Agreement, dated as of October 2, 2003 with General Electric Capital Corporation, as administrative agent and collateral agent, and the other financial
institutions party thereto (as amended, supplemented or otherwise modified from time to time, the “Second Lien Credit Agreement”). 
  
 (i) At the request of the Lessees, the Lessors are willing to permit the transactions contemplated by the Merger Agreement, the Senior Credit Agreement
and the Second Lien Credit Agreement, and amend the Schedules and the Leases, all as set forth herein and all subject to the terms and the conditions contained herein. 
  
 SECTION 1. Amendments. 
  
 (a) Amendments to Certain Covenants. 
  
 (i) NTFC Lease. Effective as of the Effective Date (as hereinafter defined), (A) the NTFC Lease Schedules and the NTFC Lease are hereby amended
such that the covenants referred to on the Financial Covenants and Reporting Requirements Annex to the NTFC Lease as consisting of Sections 5.02(b)-(q) of the Amended and Restated Credit Agreement, dated as of October 29, 2002 between the Lessees
and certain other parties, shall no longer be a part of the NTFC Lease, and Lessees shall have no further obligation to observe such covenants for the benefit of NTFC, (B) the covenants attached hereto as Exhibit A are hereby deemed to be attached
to, and are deemed to have become a part of, the NTFC Lease in place of the covenants referred to in clause (A) above, and (C) Section 1 of the Financial Covenants and Reporting Requirements Annex to the NTFC Lease shall be amended to read as
follows: 
  
 “1. Certain Covenants. (a)
Lessees shall observe for the benefit of the Lessor the covenants set forth in Sections 5.02(b)-(q) of that certain Second Amended and Restated Credit Agreement dated as of October 2, 2003 among the Parent, the Lessees, and certain other
subsidiaries of the Parent on the one hand, 
  

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 and Wells Fargo Bank Minnesota, National Association, as administrative agent and collateral agent, and
the other financial institutions party thereto on the other, as in effect on the “Effective Date” (as such term is defined in the Second Amendment to the Schedules and the Leases dated as of October 2, 2003; such Second Amended and
Restated Credit Agreement on the Effective Date is herein referred to as the “Senior Credit Agreement”), which covenants are attached hereto. Capitalized terms contained in such covenants shall have the meanings set forth in the
Senior Credit Agreement. A violation of any of such covenants shall constitute a default under Section 19(d) hereof, subject to the cure period specified therein. 
  
 (b) Lessees shall observe for the benefit of the Lessor the covenants set forth in Sections 5.02(b)-(q) of
that certain Credit Agreement dated as of October     , 2003 among the Parent, the Lessees, and certain other subsidiaries of the Parent on the one hand, and General Electric Capital Corporation, as administrative agent
and collateral agent, and the other financial institutions party thereto on the other, as in effect on the “Effective Date” (as such term is defined in the Second Amendment to the Schedules and the Leases dated as of October
    , 2003; such Credit Agreement on the Effective Date is herein referred to as the “Second Lien Credit Agreement”), which covenants are attached hereto. Capitalized terms contained in such covenants
shall have the meanings set forth in the Second Lien Credit Agreement. A violation of any of such covenants shall constitute a default under Section 19(d) hereof, subject to the cure period specified therein. 
  
 (c) Neither the Parent, the Lessees nor any other subsidiary
of the Parent shall incur any indebtedness (the “Refinancing Indebtedness”) to refinance all or a substantial portion of the indebtedness under the Senior Credit Agreement and/or the Second Lien Credit Agreement or any prior
Refinancing Indebtedness unless, immediately following the incurrence of such Refinancing Indebtedness, (A) the aggregate principal payments payable, through the later of June 15, 2006 or the date on which all obligations of the Lessees under each
of the Leases is paid in full (the “Lease Termination Date”), by the Parent, the Lessees and any other subsidiary of the Parent pursuant to such Refinancing Indebtedness, the Leases and the Other Indebtedness (as such indebtedness
is reduced by the Refinancing Indebtedness) are not greater than the aggregate principal payments payable through the Lease Termination Date by the Parent, the Lessees and any other subsidiary of the Parent pursuant to the Leases and the Other
Indebtedness immediately prior to the incurrence of such Refinancing Indebtedness, (B) the scheduled final maturity date of such Refinancing Indebtedness is not earlier than the scheduled final maturity date of the indebtedness being refinanced by
such Refinancing Indebtedness and (C) the principal of such Refinancing Indebtedness is not subject to required amortization payments earlier than the principal of the indebtedness being refinanced by such Refinancing Indebtedness. For purposes
hereof, “Other Indebtedness” means: 
  

	 	(i)	the indebtedness under the Senior Credit Agreement; 

  

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	 	(ii)	the indebtedness under Second Lien Credit Agreement; 

  

	 	(iii)	the indebtedness in the principal amount of $18,500,000 evidenced by the 10 1/2% Senior Notes due 2007 of BTI Telecom Corp.; 

  

	 	(iv)	the indebtedness in the principal amount of $7,100,000 evidenced by the note payable by BTI Telecom, Inc. to the order of P&H, Inc.; and 

  

	 	(v)	any other indebtedness of the Parent, the Lessees or any other subsidiary of the Parent outstanding immediately prior to the incurrence of the Refinancing Indebtedness.”

  
 (ii) GECC Lease. Effective as of the
Effective Date, (A) the GECC Lease Schedule and the GECC Lease are hereby amended such that the covenants attached hereto as Exhibit A are hereby deemed to be attached to, and are deemed to have become a part of, the GECC Lease, and (B) a new
Section 22 of the GECC Lease shall be added to read in its entirety as follows: 
  
 “22. Certain Covenants. (a) Lessee shall observe for the benefit of the Lessor the covenants set forth in Sections 5.02(b)-(q) of
that certain Second Amended and Restated Credit Agreement dated as of October 2, 2003 among the Parent, the Lessee, and certain other subsidiaries of the Parent on the one hand, and Wells Fargo Bank Minnesota, National Association, as administrative
agent and collateral agent, and the other financial institutions party thereto on the other, as in effect on the “Effective Date” (as such term is defined in the Second Amendment to the Schedules and the Leases dated as of October 2, 2003;
such Second Amended and Restated Credit Agreement on the Effective Date is herein referred to as the “Senior Credit Agreement”), which covenants are attached hereto. Capitalized terms contained in such covenants shall have the
meanings set forth in the Senior Credit Agreement. A violation of any of such covenants shall constitute a default under Section 14(b) hereof, subject to the cure period specified therein. 
  
 (b) Lessee shall observe for the benefit of the Lessor the
covenants set forth in Sections 5.02(b)-(q) of that certain Credit Agreement dated as of October     , 2003 among the Parent, the Lessee, and certain other subsidiaries of the Parent on the one hand, and General Electric
Capital Corporation, as administrative agent and collateral agent, and the other financial institutions party thereto on the other, as in effect on the “Effective Date” (as such term is defined in the Second Amendment to the Schedules and
the Leases dated as of October 2, 2003; such Credit Agreement on the Effective Date is herein referred to as the “Second Lien Credit Agreement”), which covenants are attached hereto. Capitalized terms contained in such covenants
shall have the meanings set forth in the Second Lien Credit Agreement. A violation of any of such covenants shall constitute a default under Section 14(b) hereof, subject to the cure period specified therein. 
  

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 (c) Neither the Parent, the Lessees nor any other subsidiary of the Parent shall incur
any indebtedness (the “Refinancing Indebtedness”) to refinance all or a substantial portion of the indebtedness under the Senior Credit Agreement and/or the Second Lien Credit Agreement or any prior Refinancing Indebtedness unless,
immediately following the incurrence of such Refinancing Indebtedness, (A) the aggregate principal payments payable, through the later of June 15, 2006 or the date on which all obligations of the Lessees under each of the Leases is paid in full (the
“Lease Termination Date”), by the Parent, the Lessees and any other subsidiary of the Parent pursuant to such Refinancing Indebtedness, the Leases and the Other Indebtedness (as such indebtedness is reduced by the Refinancing
Indebtedness) are not greater than the aggregate principal payments payable through the Lease Termination Date by the Parent, the Lessees and any other subsidiary of the Parent pursuant to the Leases and the Other Indebtedness immediately prior to
the incurrence of such Refinancing Indebtedness, (B) the scheduled final maturity date of such Refinancing Indebtedness is not earlier than the scheduled final maturity date of the indebtedness being refinanced by such Refinancing Indebtedness and
(C) the principal of such Refinancing Indebtedness is not subject to required amortization payments earlier than the principal of the indebtedness being refinanced by such Refinancing Indebtedness. For purposes hereof, “Other
Indebtedness” means: 
  

	 	(i)	the indebtedness under the Senior Credit Agreement; 

  

	 	(ii)	the indebtedness under Second Lien Credit Agreement; 

  

	 	(iii)	the indebtedness in the principal amount of $18,500,000 evidenced by the 10 1/2% Senior Notes due 2007 of BTI Telecom Corp.; 

  

	 	(iv)	the indebtedness in the principal amount of $7,100,000 evidenced by the note payable by BTI Telecom, Inc. to the order of P&H, Inc.; and 

  

	 	(v)	any other indebtedness of the Parent, the Lessees or any other subsidiary of the Parent outstanding immediately prior to the incurrence of the Refinancing Indebtedness.”

  
 SECTION 2. Condition to Effectiveness; Other
Matters. 
  
 (a) Effectiveness of Amendment. This
Amendment shall not become effective until all of the following conditions shall have been satisfied: 
  
 (i) the absence of any default or Event of Default under either of the Leases; 
  
 (ii) the representations and warranties of the Lessees in Section 3 hereof shall be true and correct in all material
respects at such time; 
  

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 (iii) concurrently with the effectiveness of this Amendment, the effectiveness of the Senior Credit
Agreement in the form set forth as Exhibit B hereto, and the execution and delivery by each of the parties identified in the Senior Credit Agreement of each of the security, collateral or pledge documents required by the Senior Credit Agreement as
conditions to the “Amendment Effective Date” referred to therein; 
  
 (iv) the absence of a Default or an Event of Default as provided and defined in the Senior Credit Agreement; 
  
 (v) concurrently with the effectiveness of this Amendment, the effectiveness of the Second Lien Credit Agreement in the form set forth as Exhibit C
hereto, and the execution and delivery by each of the parties identified in the Second Lien Credit Agreement of each of the security, collateral or pledge documents required by the Second Lien Credit Agreement as conditions to the “Amendment
Effective Date” referred to therein; 
  
 (vi) concurrently
with the effectiveness of this Amendment, the consummation of all transactions required pursuant to the Merger Agreement on the closing date thereunder, including the payment due in connection with the sale of preferred stock by the Parent on such
closing date; 
  
 (vii) the execution by each of Wells Fargo Bank
Minnesota, National Association and General Electric Capital Corporation of an Acknowledgment, Consent & Waiver/Release Agreement in form attached as Exhibit D hereto; and 
  
 (viii) the absence of a Default or an Event of Default as provided and defined in the Second Lien Credit Agreement;

  
 (b) Time of Effectiveness. At the time that all of the
conditions set forth in Section 2(a) have been satisfied and this Amendment shall have been executed and delivered by the parties hereto, this Amendment shall become effective (the time of effectiveness of this Amendment, the “Effective
Date”). 
  
 (c) Consent and Waiver. Effective as
of the Effective Date, Lessors hereby agree and consent to the consummation of the transactions contemplated by the Merger Agreement (including, without limitation, the execution, delivery and performance by the Parent and its subsidiaries of the
Senior Credit Agreement and the Second Lien Credit Agreement) and to the consummation of the transactions contemplated by the Senior Credit Agreement and the Second Lien Credit Agreement, and hereby irrevocably waive any and all defaults and Events
of Default under the Leases arising solely out of or resulting solely from the consummation prior to the Effective Date of the transactions contemplated by the Merger Agreement. 
  
 (d) No Additional Amendment. Lessors and Lessees agree that this Amendment shall constitute the only amendment to the
Schedules and the Leases that shall be required solely as a result of the consummation of the transactions contemplated by the Merger Agreement, the Senior Credit Agreement and the Second Lien Credit Agreement. 
  

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 (e) Release by Lessees. Effective as of the Effective Date, the Lessees hereby release each Lessor
and each such Lessor’s direct and indirect stockholders and other affiliates, officers, employees, directors and agents (collectively, the “Releasees”) from any and all claims, demands, liabilities, responsibilities, disputes,
causes of action (whether at law or in equity) and obligations of every nature whatsoever, whether liquidated or unliquidated, known or unknown, matured or unmatured, fixed or contingent that any of the Lessees may have against any Lessor arising
from or relating to any action or inactions of any Releasee on or prior to the Effective Date with respect to the Leases or this Amendment. For purposes of the release contained in this paragraph, the term “Lessee” shall also include the
Lessees’ successors and assigns, including, without limitation, any trustee, receiver or other representative acting on behalf of the Lessee. 
  
 SECTION 3. Representations and Warranties of Each Lessee. Each Lessee represents and warrants that: 
  
 (a) The execution, delivery and performance of this Amendment by such Lessee
is within the respective corporate powers of such Lessee and has been duly authorized by all necessary corporate action by such Lessee, and this Amendment constitutes a valid and binding agreement of such Lessee. 
  
 (b) Except as expressly provided herein, the execution and delivery of this
Amendment shall not: (i) constitute an extension, modification, or waiver of any aspect of the Leases; (ii) extend the terms of the Leases or the due date of any of the obligations under the Leases; (iii) give rise to any obligation on the part of
either of the Lessors to extend, modify or waive any term or condition of the Leases; or (iv) give rise to any defenses or counterclaims to Lessors’ rights to compel payment of the obligations under the Leases or to otherwise enforce their
rights and remedies under the Leases. 
  
 (c) The Leases and the
Schedules constitute valid and legally binding obligations of such Lessee and are enforceable against such Lessee in accordance with the terms thereof and hereof, except as limited by bankruptcy, insolvency, reorganization or other similar laws or
equitable principles. 
  
 (d) The representations and warranties
of such Lessee contained in the Leases, the Schedules and each Lease Document are correct in all material respects on and as of the date hereof, before and after giving effect to this Amendment, other than any such representations and warranties
that, by their terms, refer to a specific date other than the date hereof, in which case as of such specific date. 
  
 (e) The representations and warranties set out in Sections 13(b), (c), (d) and (e) of the NTFC Lease are incorporated herein and made a part of this
Amendment, with references therein to “this Agreement” or “Lease Documents” in whatever form being replaced by “this Amendment.” 
  

(f) No default or Event of Default under any of the Leases or the Schedules has occurred and is continuing, or would result from this Amendment.

  

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 SECTION 4. Reference to and Effect on the Annexes, etc. 
  
 (a) On and after the Effective Date, (i) each reference in a Schedule to
“this Schedule,” “hereunder,” “hereof” or words of like import referring to such Schedule, shall mean and be a reference to such Schedule, as amended by this Amendment, (ii) each reference in a Lease to “this
Agreement,” “hereunder,” “hereof” or words of like import referring to such Lease, shall mean and be a reference to such Lease, as amended by this Amendment, and (iii) each reference in a Lease Document to the “Master
Lease Agreement,” a “Schedule,” an “Equipment Schedule,” “thereunder,” “thereof” or words of like import shall mean and be a reference to the NTFC Lease, an NTFC Lease Schedule, the GECC Lease or the GECC
Lease Schedule, as applicable, as amended by this Amendment. 
  
 (b) The Schedules and the Leases, as amended by this Amendment, are and shall continue to be in full force and effect and hereby are in all respects ratified and confirmed. 
  
 (c) Except as expressly limited in this Amendment, Lessors hereby expressly reserve all of their respective rights and
remedies under the Leases. 
  
 SECTION 5. Reserved.

  
 SECTION 6. Consent of FiberNet. FiberNet, as Guarantor
under the Guaranty, hereby consents to this Amendment and hereby confirms and agrees that (a) it has received a copy of and reviewed to its satisfaction this Amendment and, (b) notwithstanding the effectiveness of this Amendment, the Guaranty is,
and shall continue to be, in full force and effect and hereby is ratified and confirmed in all respects. 
  
 SECTION 7. Execution in Counterparts. This Amendment may be executed by one or more of the parties on any number of separate counterparts (which
may be originals or copies sent by facsimile transmission), each of which counterparts shall be an original. 
  
 SECTION 8. Certain Costs and Expenses of Lessors. Within three (3) business days after demand therefor, Lessees hereby agree to pay all of
Lessors’ out-of-pocket costs and expenses (including, without limitation, the reasonable fees and disbursements of legal counsel to Lessors) related to the preparation, negotiation and execution of this Amendment, including, without limitation,
review, analysis and revision of the security documents and filings associated with the Leases and the Schedules, review and analysis of the Merger Agreement, the Senior Credit Agreement and the Second Lien Credit Agreement and the transactions
contemplated thereby, and related matters. 
  
 SECTION 9.
Governing Law; Waiver of Jury Trial. THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. ALL PARTIES WAIVE ALL RIGHTS TO A JURY TRIAL TO THE EXTENT PERMITTED BY LAW. EACH GUARANTOR HEREBY WAIVES ITS RIGHT TO A JURY TRIAL
WITH RESPECT TO ANY ACTION OR CLAIM 
  

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 ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE PERFORMANCE
OF ANY OF SUCH RIGHTS OR OBLIGATIONS. 
  
 SECTION 10.
Continued Effectiveness. Except as expressly set forth herein, the terms, provisions and conditions of the Leases and the Schedules are unchanged, and the Leases and the Schedules, as modified hereby, shall remain in full force and effect and
are hereby confirmed and ratified. 
  
 [Remainder of page
intentionally blank; next page is signature page] 
  

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

					
	 As Lessee and, solely for purposes of Section
 6 of this Amendment, as Guarantor:

	
	INTERSTATE FIBERNET, INC.
		
	By:	 	 /s/ Douglas A. Shumate

	 	 	Name:	 	Douglas A. Shumate
	 	 	Title:	 	 Senior Vice President/Chief
 Financial
Officer

	
	As Lessee:
	
	ITC^DELTACOM COMMUNICATIONS, INC.
		
	By:	 	 /s/ Douglas A. Shumate

	 	 	Name:	 	Douglas A. Shumate
	 	 	Title:	 	 Senior Vice President/Chief
 Financial
Officer

  
 [Signature page
to Amendment to the Schedules and the Leases] 
  

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	 As Lessor:

	
	NTFC CAPITAL CORPORATION
		
	 By:
	 	   /s/ Henry Cruz

	 	 	 Name:
	 	 Henry Cruz

	 	 	 Title:
	 	 Vice President

	
	 As Lessor:

	
	GENERAL ELECTRIC CAPITAL CORPORATION
		
	 By:
	 	   /s/ Henry Cruz

	 	 	 Name:
	 	 Henry Cruz

	 	 	 Title:
	 	 Sr. Risk Manager

  
 [Signature page
to Amendment to the Schedules and the Leases] 
  
  

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 Exhibit A – Certain Covenants from the Senior Credit Agreement 
 and the Second Lien Credit Agreement 
  
 SECTION 5.02. Negative Covenants So long as any Advance or any other Obligation of any Loan Party under any Loan Document shall remain unpaid or
any Lender Party shall have any Commitment hereunder, the Parent shall not, at any time: 
  
  
  
 [Note: Subsection (a)
intentionally omitted from original] 
  
  
  
 (b) Debt. Incur or permit any of its Subsidiaries to
Incur any Debt, provided, that any one or more of the Parent and its Subsidiaries may Incur Debt as specified in the second paragraph of this Section 5.02(b) if, after giving effect to the Incurrence of such Debt and the receipt and
application of the proceeds therefrom, the Parent and its Subsidiaries are in compliance with Section 5.02(q) as of the date of the Incurrence of such Debt. In the case of Incurrence of Debt pursuant to 

 Section 5.02(b)(ii), (iii), (v), (vi), (vii) or (viii), or an Incurrence of more than $1,000,000
principal amount of Debt pursuant to Section 5.02(b)(xi), such compliance with Section 5.02(q) shall be evidenced by delivery of a Financial Covenants Certificate to the Administrative Agent no less than five Business Days before the date of such
Incurrence. 
  
 Subject to the first paragraph of
this Section 5.02(b), the Parent and its Subsidiaries (except as specified below) may Incur each and all of the following:  
  
 (i) with respect to the Parent and its Subsidiaries, Debt under the Loan Documents and the Second Lien Loan Documents; 
  
 (ii) Subordinated Debt of the Parent or the Borrower
outstanding at any time in an aggregate principal amount (together with refinancings thereof) not to exceed $30,000,000, provided, that (A) the maturity of such Subordinated Debt is at least three months following the final maturity date of
the Facilities and the final maturity date under the Second Lien Credit Agreement, (B) the Administrative Agent and the Required Lenders, and the Administrative Agent and the Required Lenders under the Second Lien Loan Documents, are reasonably
satisfied that the Parent and its Subsidiaries shall be in compliance with the provisions of the Loan Documents and the Second Lien Loan Documents, respectively, for the period from the Incurrence of such Subordinated Debt through the final maturity
date of the Facilities and the final maturity date under the Second Lien Credit Agreement, and (C) the Required Lenders, and the Required Lenders under the Second Lien Loan Documents, have approved the terms of the subordination relating to such
Subordinated Debt, and provided, further, that, for purposes of this clause (ii), Subordinated Debt shall not include Debt under the Second Lien Loan Documents; 
  
 (iii) (A) Capitalized Leases not to exceed in the aggregate $70,000,000 (including the GECC Capital Lease,
the NTFC Capital Lease and any other Capitalized Leases constituting Surviving Debt) at any time outstanding, and (B) in the case of Capitalized Leases to which any Subsidiary of the Borrower or BTI is a party, Debt of the Borrower or BTI of the
type described in clause (i) of the definition of “Debt” guaranteeing the Obligations of such Subsidiary under such Capitalized Leases; 
  

(iv) the Surviving Debt; 
  
 (v) Debt of the Parent so long as (A)(1) a sufficient amount of cash to pay interest on the Facilities for the next succeeding 24 months
(in the reasonable judgment of the Administrative Agent) is deposited into escrow on terms and conditions that are mutually acceptable to the Administrative Agent and the Borrower, (2) the final maturity date of such Debt is at least three months
after the final maturity date of the Facilities 

 and (3) the Administrative Agent and the Required Lenders are reasonably satisfied that the Parent and
its Subsidiaries shall be in compliance with the provisions of the Loan Documents for the period from the end of the escrow arrangements through the final maturity date of the Facilities; or (B) 100% of the net proceeds of such Debt is used to
repay, reduce or refinance the Debt pursuant to clause (viii) below, provided, that, the final maturity date of such Debt is on or after September 30, 2008, there is no principal amortization of such Debt before September 30, 2008 and such
Debt is incurred upon the terms and conditions as are approved by the Required Lenders; 
  
 (vi) Debt of the Borrower under Hedge Agreements; provided, that such agreements (A) are designed solely to protect the Borrower,
BTI or any Subsidiaries of the Borrower or BTI against fluctuations in foreign currency exchange rates or interest rates and (B) do not increase the Debt of the obligor outstanding at any time other than as a result of fluctuations in foreign
currency exchange rates or interest rates or by reason of fees, indemnities and compensation payable thereunder; 
  
 (vii) Debt Incurred in connection with the refinancing of any Debt permitted under Section 5.02(b) (other than the Debt under the Loan
Documents), provided, that the Debt Incurred in connection with such refinancing (A) has a scheduled maturity date that is on or after the scheduled maturity date of the Debt being refinanced, (B) has a weighted average life to maturity that
is equal to or longer than the remaining weighted average life to maturity of the Debt being refinanced, determined immediately prior to giving effect to such refinancing, (C) does not include any provisions that may require mandatory prepayment of
such Debt prior to its scheduled maturity, other than scheduled prepayments taken into consideration in determining compliance with clause (B) above and other provisions that are not materially more burdensome to the obligor thereunder than any such
provisions included in the Debt being refinanced, (D) is Incurred by the same Person that Incurred the Debt being refinanced and is not Guaranteed or secured by any Lien unless the Debt being refinanced was Guaranteed or secured by a Lien (in which
case such Debt shall not be Guaranteed by any Person that did not Guarantee the Debt being refinanced and shall not be secured by a Lien on any asset that did not secure the Debt being refinanced), (E) if the refinanced Debt was subordinated to the
Debt under the Loan Documents or the Debt under the Second Lien Loan Documents, such Debt is subordinated to the Debt under the Loan Documents or the Debt under the Second Lien Loan Documents, as the case may be, on terms no less favorable to the
Lenders or the Lenders under the Second Lien Loan Documents, as applicable, than the terms on which the Debt being refinanced was so subordinated, and (F) has an aggregate principal amount which is equal to or greater than that of the Debt being
refinanced; provided, further, that Debt Incurred under this Section 

 5.02(b)(vii) which has an aggregate principal amount that is greater than that of the Debt being
refinanced shall not be permitted by this Section 5.02(b)(vii) unless a prepayment of the Debt under the Loan Documents and the Debt under the Second Lien Loan Documents is made in accordance with Section 2.05 hereof (each refinancing undertaken in
accordance with this Section 5.02(b)(vii) shall be referred to herein as a “Permitted Refinancing”); 
  
 (viii) Debt (excluding Debt Incurred pursuant to Section 5.02(b)(v)) Incurred in connection with the repayment or refinancing of the Debt
under the Loan Documents in full or, if the Debt under the Loan Documents is not repaid or refinanced in full, in such other amount as is approved by the Required Lenders; 
  
 (ix) Debt in respect of Ordinary Course Obligations in an aggregate amount not to exceed $10,000,000 at any
time outstanding; 
  
 (x) Debt secured by a
Permitted Lien, to the extent that such Debt is Incurred in the ordinary course of business and is not the subject of an enforcement, collection, execution, levy or foreclosure proceeding and is not duplicative of Debt Incurred pursuant to Section
5.02(b)(ix); and 
  
 (xi) Debt in an aggregate
principal amount not to exceed $5,000,000 at any time outstanding, provided, that none of the Debt referred to in Sections 5.02(b)(i) through (x) may be Incurred pursuant to this Section 5.02(b)(xi). 
  
 Notwithstanding any other provision under this Section
5.02(b), (A) the maximum amount of Debt that the Parent or a Subsidiary may Incur pursuant to this Section 5.02(b) shall not be deemed to be exceeded with respect to any outstanding Debt, and the Loan Parties shall not be deemed to be out of
compliance with Section 5.02(q), solely as a result of fluctuations in the exchange rates of currencies, and (B) any Loan Party may Incur Debt owed to any other Loan Party. 
  
 (c) Change in Nature of Business. Make, or permit any of its Subsidiaries to make, any material
change in the nature of its business as carried on at the date hereof provided, that, the Parent or any of its Subsidiaries may engage in activities that are ancillary or related to its business. 
  
 (d) Mergers, Etc. Other than as required to
consummate the Merger Transactions, merge into or consolidate with any Person or permit any Person to merge into it, or permit any of its Subsidiaries to do so, except that: 
  
 (i) any Subsidiary of the Borrower may merge into or consolidate with any other Subsidiary of the Borrower,
provided, that, in the case of any such merger or consolidation, the Person formed by such merger or consolidation shall be a Subsidiary of the Borrower, and 

 provided, further, that, in the case of any such merger or consolidation to which a Subsidiary
Guarantor is a party, the Person formed by such merger or consolidation shall be a Subsidiary Guarantor; 
  
 (ii) subject to the conditions of Section 5.02(f)(vii), any Subsidiary of the Borrower or BTI may merge into or consolidate with any other
Person or permit any other Person to merge into or consolidate with it, provided, that the Person formed by such merger or consolidation shall be a Subsidiary of the Borrower or BTI; 
  
 (iii) in connection with any sale or other disposition
permitted under Section 5.02(e) (other than clause (ii) thereof), any Subsidiary of the Borrower or BTI may merge into or consolidate with any other Person or permit any other Person to merge into or consolidate with it; 
  
 (iv) BTI may merge into or consolidate with any Subsidiary
of BTI, the Borrower or any Subsidiary of the Borrower, provided, that the Person formed by such merger or consolidation (other than the Borrower) shall be a Subsidiary Guarantor; 
  
 (v) any Subsidiary of the Borrower may merge into or consolidate with the Borrower, BTI or any Subsidiary of
BTI, provided, that the Person formed by such merger or consolidation (other than the Borrower) shall be a Subsidiary Guarantor; 
  
 (vi) any Subsidiary of BTI may merge into or consolidate with BTI, the Borrower or any Subsidiary of the Borrower or BTI, provided,
that the Person formed by such merger or consolidation (other than the Borrower) shall be a Subsidiary Guarantor; 
  
 (vii) any Person may merge into the Borrower, provided, that either (A)(1) the Parent and its Subsidiaries are in compliance with
Sections 5.02(a), (b) and (f) on the date of such merger and after giving effect thereto, (2) the consideration for such merger consists solely of Capital Stock of the Parent and cash in lieu of fractional shares of such Capital Stock, (3) such
Person has positive cash flow measured by EBITDA minus Capital Expenditures, in each case, for the most recent twelve full months preceding the date of such merger, (4) immediately preceding the date of such merger, the value of the Current
Assets of such Person minus unsecured Debt for Borrowed Money of such Person to be assumed in such merger minus Capitalized Leases of such Person to be assumed in such merger is at least $1.00, and (5) if the date of such merger shall
occur within twelve months after the Merger Closing Date, the Chief Financial Officer of the Borrower shall certify to the Administrative Agent that the Minimum Required Synergies shall be achieved prior to the date of such merger; or (B) the
Required Lenders consent to such merger; and 

 (viii) any Subsidiary of the Parent other than the Borrower may merge into or consolidate
with any other Person (other than a Subsidiary of the Parent) or permit any such other Person to merge into or consolidate with it (other than, in either such case, in a transaction referred to in clause (ii) or (iii) above), provided, that
the requirements of clause (vii) above shall be satisfied with respect to such Person and such merger or consolidation, and provided, further, that the Person formed by such merger or consolidation shall be a Subsidiary Guarantor; 

 
 provided, that in each case, immediately after giving effect
thereto, no event shall occur and be continuing that constitutes a Default and in the case of any such merger to which the Borrower is a party, (i) the Borrower is the surviving corporation, and (ii) except as permitted by Section 5.02(f)(v), such
merger does not adversely affect the Debt Rating, if any. The calculations referred to in clauses (vii)(A)(3) and (vii)(A)(4) above shall be made on a Consolidated basis with respect to all Persons that shall become Subsidiaries of the Parent as a
result of any individual merger or consolidation to which such calculations shall apply. 
  
 (e) Sales, Etc., of Assets. Sell, lease, transfer or otherwise dispose of, or permit any of its Subsidiaries to sell, lease,
transfer or otherwise dispose of, any assets, or grant any option or other right to purchase, lease or otherwise acquire any assets, other than Inventory to be sold in the ordinary course of its business, except: 
  
 (i) (A) sales of Inventory in the ordinary course of its
business and (B) sales and leases of assets, including, without limitation, fiber sales in the ordinary course of its business consistent with prudent business practice for companies engaged in similar businesses; 
  
 (ii) in a transaction authorized by Section 5.02(d) (other
than clause (iii) thereof); 
  
 (iii) sales of
assets for cash and for fair value in an aggregate amount not to exceed $10,000,000 in any Fiscal Year; 
  
 (iv) sales of obsolete equipment for cash in an aggregate amount not to exceed $20,000,000; 
  
 (v) any sale, lease, transfer or other disposition by the
Parent or any Subsidiary of the Parent to a Loan Party; and 
  
 (vi) assignments, sales or other dispositions at fair market value of accounts receivable representing amounts owed to any Loan Party by any Person that is subject to a proceeding under the Bankruptcy Code;

  
 provided, that in the case of sales of assets pursuant
to clause (iii) above, the Borrower shall, on the date of receipt by any Loan Party or any of its Subsidiaries of the Net Cash Proceeds from such sale, prepay the Advances pursuant to, and in 

 the amount and order of priority set forth in, Section 2.05(b)(ii), as specified therein. Nothing in this
Section 5.02(e) shall restrict the Parent from issuing, selling, transferring or otherwise disposing of, for or without consideration and by dividend or otherwise, any Equity Interests in the Parent, or any option, warrant or other right to purchase
or otherwise acquire any Equity Interests in the Parent. 
  
 (f) Investments in Other Persons. Other than as required to consummate the Merger Transactions, make or hold, or permit any of its Subsidiaries to make or hold, any Investment in any Person, except: 

 
 (i) equity Investments by the Parent and its Subsidiaries
in their Subsidiaries outstanding on the date hereof and additional Investments in Loan Parties; 
  
 (ii) loans and advances to employees in the ordinary course of the business of the Parent and its Subsidiaries in an aggregate principal
amount not to exceed $1,000,000 at any time outstanding; 
  
 (iii) Investments in Cash Equivalents; 
  
 (iv) Investments existing on the date hereof and described on Schedule 4.01(y) hereto; 
  
 (v) other Investments in an aggregate cash amount invested not to exceed $10,000,000 plus 50% of the Net Cash Proceeds from any
issuance of Equity Interests; provided, however, that the consent of the Required Lenders shall be required for any single Investment in which the cash to be committed or paid exceeds $2,000,000; provided, further, that with respect to
Investments made under this clause (v): (A) any newly acquired or organized Subsidiary of the Parent or any of its Subsidiaries shall be a wholly owned Subsidiary thereof; (B) immediately before and after giving effect thereto, no Default shall have
occurred and be continuing or would result therefrom; and (C) any company or business acquired or invested in pursuant to this clause (v) shall be in the same line of business as the business of the Parent or any of its Subsidiaries or shall be
engaged in an ancillary or related business; provided, further, still, that, if (1) any such Investment is made with a combination of cash and shares, stock or other securities of the Parent or any of its Subsidiaries and (2)
such Investment results in the Debt Rating being downgraded by more than one level, then the Applicable Margin shall increase by 0.50% per annum; 
  
 (vi) extension of trade credit in the ordinary course of business; and 
  
 (vii) an Investment through the acquisition by the Parent or any of its Subsidiaries of all of the
outstanding Capital Stock of another Person solely in exchange for the Capital Stock of the Parent and cash in lieu of 

 fractional shares of such Capital Stock; provided, that either (A)(1) such Person has positive
cash flow measured by EBITDA minus Capital Expenditures, in each case for the most recent twelve full months preceding the date of such acquisition, (2) immediately preceding the date of such acquisition, the value of the Current Assets of
such Person minus unsecured Debt of such Person to be assumed in such acquisition minus Capitalized Leases of such Person to be assumed in such acquisition is at least $1.00, and (3) if the date of such acquisition shall occur within
twelve months after the Merger Closing Date, the Chief Financial Officer of the Borrower shall certify to the Administrative Agent that the Minimum Required Synergies shall be achieved prior to the date of such acquisition; or (B) the Required
Lenders consent to such acquisition; provided, that, in any such case, any Person so acquired shall be a Subsidiary Guarantor; provided, further, that the calculations referred to in clauses (A)(1) and (A)(2) above shall be made on a
Consolidated basis with respect to all Persons that shall become Subsidiaries of the Parent as a result of any individual Investment to which such calculations shall apply, provided, however, that, if such combination results in the
Debt Rating being downgraded by more than one level, then the Applicable Margin shall increase by 0.50% per annum. 
  
 (g) Restricted Payments. Permit the Borrower, BTI or any Subsidiary of the Borrower or BTI to declare or pay any dividends,
purchase, redeem, retire, defease or otherwise acquire for value any of its Equity Interests now or hereafter outstanding, return any capital to its stockholders, partners or members (or the equivalent Persons thereof) as such, make any distribution
of assets, Equity Interests, obligations or securities to its stockholders, partners or members (or the equivalent Persons thereof) as such or issue or sell any Equity Interests or accept any capital contributions (other than capital contributions
from the parent of the Borrower, BTI or any Subsidiary of the Borrower or BTI to the extent permitted under Section 5.02(f)(i)), or permit any of its Subsidiaries to purchase, redeem, retire, defease or otherwise acquire for value any Equity
Interests in the Borrower, BTI or the Parent, except that, if no Event of Default has occurred and is continuing, the Borrower, BTI and each Subsidiary of the Borrower and BTI may each declare and pay dividends in cash or otherwise make
distributions in cash to its parent, including the Parent, provided, however, that such parent, including the Parent, may use the proceeds of such cash dividends and other distributions only to pay (i) scheduled interest and principal of
Surviving Debt or any Debt issued or Incurred by such parent, including the Parent, after the Amendment Effective Date in accordance with the terms of Section 5.02(b) and (ii) in the case of the Parent, cash in lieu of issuing fractional shares of
its Capital Stock in an aggregate amount not to exceed $250,000. 
  
 (h) Amendments of Constitutive Documents. Amend, or permit any of its Subsidiaries to amend, its certificate of incorporation or bylaws or other constitutive documents except for any amendment that could not
reasonably be expected to have a Material Adverse Effect. An amendment of (i) the redemption 

 provisions of the Series A Certificate of Designation in connection with a sale of any of the Loan
Parties, (ii) the redemption provisions of the Series B Certificate of Designation in connection with a sale of any of the Loan Parties, and (iii) the certificate of incorporation, bylaws or other constitutive documents of the Parent and the other
Loan Parties as contemplated by the Merger Agreement shall not be deemed to have a Material Adverse Effect. 
  
 (i) Accounting Changes. Make or permit, or permit any of its Subsidiaries to make or permit, any change in (i) accounting policies
or reporting practices, except as required by generally accepted accounting principles, or (ii) Fiscal Year. 
  
 (j) Prepayments, Etc., of Debt. Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled amortization or
maturity thereof in any manner, or make any payment in violation of any subordination terms of, any Debt except (i) the payment or prepayment of any or all of the Obligations under the Loan Documents, (ii) the Capital Lease Amendment Payments, (iii)
the Contingent Payments, and (iv) regularly scheduled or required repayments or redemptions of Surviving Debt, or amend, modify or change in any manner any term or condition of any Surviving Debt, except for any amendment, modification or change of
Surviving Debt (except as provided in any of clauses (i) through (iii) above or otherwise in this Agreement) that (A) could not reasonably be expected to have a Material Adverse Effect, (B) would not accelerate the scheduled amortization of such
Surviving Debt and (C) would not increase the applicable interest rate of such Surviving Debt, or permit any of its Subsidiaries to do any of the foregoing other than to prepay any Debt payable to the Borrower or another Subsidiary of the Parent;
provided, that, notwithstanding the foregoing, the Parent and its Subsidiaries may (1) consummate any Permitted Refinancing (and thereafter make any regularly scheduled or required repayment or redemptions of Debt incurred in connection with
such Permitted Refinancing) and (2) repay or refinance the Debt under the Loan Documents in full or in such other amount as is approved by the Required Lenders pursuant to Section 5.02(b)(viii). 
  
 (k) Negative Pledge. Enter into or suffer to exist,
or permit any of its Subsidiaries to enter into or suffer to exist, any agreement prohibiting or conditioning the creation or assumption of any Lien upon any of its property or assets except (i) in favor of (A) the Secured Parties under this
Agreement or (B) the Secured Parties as provided and defined in the Second Lien Loan Documents or (ii) in connection with (A) any Surviving Debt or (B) any Capitalized Lease permitted under Section 5.02(b)(iii) solely to the extent that such
Capitalized Lease prohibits a Lien on the property subject thereto. 
  
 (l) Partnerships, Etc. Become a general partner in any general or limited partnership or joint venture, or permit any of its Subsidiaries to do so, other than any Subsidiary the sole assets of which consist of
its interest in such partnership or joint venture. 

 (m) Speculative Transactions. Engage, or permit any of its Subsidiaries to engage,
in any transaction involving commodity options or futures contracts or any similar speculative transactions. 
  
 (n) Formation of Subsidiaries. Organize, or permit any Subsidiary to organize, any new Subsidiary except (a) as permitted under
Section 5.02(f)(v) or (b) so long as (i) there exists no Default or Event of Default both before and after giving effect to the creation of any new wholly owned Subsidiary and the transfer of any assets to such wholly owned Subsidiary, (ii)
immediately upon the creation of any new wholly owned Subsidiary, such Subsidiary shall become a Subsidiary Guarantor, (iii) the applicable Loan Party, BTI or any Subsidiary of the Borrower or BTI owning any portions of the stock of any such new
wholly owned Subsidiary immediately delivers all shares of stock of the new wholly owned Subsidiary to the Collateral Agent, subject to the provisions of the Intercreditor and Subordination Agreement, for the benefit of the Lender Parties and the
Lender Parties under the Second Lien Loan Documents, together with stock powers executed in blank and executes and delivers to the Collateral Agent and immediately delivers to the Collateral Agent pledge agreements pledging all such stock to secure
the Obligations and the Obligations under the Second Lien Loan Documents, in form substantially similar to the applicable Loan Document. 
  
 (o) Payment Restrictions Affecting Subsidiaries. Directly or indirectly, enter into or suffer to exist, or permit any of its
Subsidiaries to enter into or suffer to exist, any agreement or arrangement limiting the ability of any of its Subsidiaries to declare or pay dividends or other distributions in respect of its Equity Interests or repay or prepay any Debt owed to,
make loans or advances to, or otherwise transfer assets to or invest in, the Borrower, BTI or any Subsidiary of the Borrower or BTI (whether through a covenant restricting dividends, loans, asset transfers or investments, a financial covenant or
otherwise), except (i) the Loan Documents, (ii) the Second Lien Loan Documents, (iii) any agreement or instrument evidencing Surviving Debt (including, without limitation, the GECC Capital Lease and the NTFC Capital Lease) and (iv) any agreement in
effect at the time such Subsidiary becomes a Subsidiary of the Borrower or BTI, so long as such agreement was not entered into solely in contemplation of such Person becoming a Subsidiary of the Borrower or BTI. 
  
 (p) Amendment, Etc., of Material Contracts. Cancel or
terminate (except in accordance with the terms thereof) any Material Contract, or consent to or accept any cancellation or termination thereof (except in accordance with the terms thereof), amend or otherwise modify any such Material Contract or
give any consent, waiver or approval thereunder, waive any default under or breach of any such Material Contract, agree in any manner to any other amendment, modification or change of any term or condition of any such Material Contract or take any
other action in connection with any such Material Contract that would impair the value of the interest or rights of any Loan Party thereunder or that would impair the interest or rights of any Agent or any Lender Party, or permit any of its
Subsidiaries to do any of the foregoing, except, in each of the foregoing cases, where to do so would not be reasonably likely to have a Material Adverse Effect. 

 (q) Financial Condition Covenants. 
  
 (i) Maximum Capital Expenditures. Make or commit to
make, or allow any of its Subsidiaries to make or commit to make, Capital Expenditures exceeding, in the aggregate for each Fiscal Year until the Termination Date, the greater of (A) EBITDA for such Fiscal Year, less the sum of (I) cash
interest expense for such Fiscal Year, plus (II) amounts paid under Section 2.03 and all principal payments under the GECC Capital Lease and the NTFC Capital Lease (a) during Fiscal Year 2002 (for purposes of calculating the maximum Capital
Expenditures for Fiscal Year 2003) or (b) during Fiscal Year 2004 or the applicable Fiscal Year thereafter (for purposes of calculating the maximum Capital Expenditures for Fiscal Year 2004 or the applicable succeeding Fiscal Year, as the case may
be), or (B) $10,000,000 for Fiscal Year 2003 and $15,000,000 for each Fiscal Year thereafter. For purposes of calculating maximum Capital Expenditures, the amount calculated in item (II) above shall be deemed not to have exceeded $20,000,000 for
Fiscal Year 2004 and shall be deemed not to have exceeded $30,000,000 for Fiscal Year 2005. Compliance with this Section 5.02(q)(i) shall be measured at the end of each Fiscal Year, commencing with Fiscal Year 2003. To the extent the Borrower’s
actual Capital Expenditures for any Fiscal Year are less than the maximum Capital Expenditures for such Fiscal Year computed as aforesaid, the Borrower may increase Capital Expenditures for the subsequent Fiscal Year by an amount equal to the amount
by which such maximum Capital Expenditures exceed such actual Capital Expenditures, but not by an amount which exceeds $5,000,000. 
  
 For the purposes of this Section 5.02(q)(i) only, Capital Expenditures shall not include the Contingent Payments and any payment made in
respect of that certain litigation arising from or in relating in any way to the use of rights of way granted to the Borrower by Mississippi Power Company; provided, that, to the extent that payment made in respect of such litigation is equal
to or greater than $5,000,000, the Borrower shall deliver to the Agent prior to the payment thereof, a statement that the Borrower will have not less than $11,500,000 in cash and Cash Equivalents (excluding any insurance proceeds deposited with the
Collateral Agent as described in clause (C) of the proviso in the definition of “Extraordinary Receipts”) after making such payment, certified by the Chief Financial Officer of the Parent. 
  
 (ii) Senior Debt Ratio. (A) Commencing on the last
day of the fiscal quarter ending December 31, 2003 and, measured on the last day of each fiscal quarter thereafter until the Termination Date, the Senior Debt 

 Ratio shall not exceed 4.0x. On the date that any Senior Debt permitted hereunder is Incurred, the Senior
Debt Ratio shall not exceed 4.0x. Whenever the Senior Debt Ratio is computed for any purpose under this Agreement, if the computation is being made with respect to a period that ends (1) on the last day of a fiscal quarter, then the Senior Debt and
EBITDA, for purposes of such computation, shall be the Senior Debt and EBITDA for the twelve-month period ended on such last day of such fiscal quarter, or (2) on a day other than the last day of a fiscal quarter, then the Senior Debt and EBITDA,
for purposes of such computation, shall be the Senior Debt and EBITDA for the most recently completed twelve-month period. 
  
 (B) Solely for the purposes of calculating the Senior Debt Ratio for purposes of clause (ii)(A) above and for purposes of calculating the
Applicable Eurodollar Rate Margin or Applicable Base Rate Margin, EBITDA may be adjusted upward (only to the extent that lost revenue exceeds new revenue) to account for any reduction in EBITDA resulting from lost revenue from PRI accounts of the
Borrower and its Subsidiaries and IFN accounts related to the sale of capacity along the fiber network during the period commencing December 31, 2002 and ending June 30, 2004, determined on the last day of each fiscal quarter during such period, for
the period of the four consecutive fiscal quarters then ended, in an aggregate amount not to exceed the amount set forth opposite such date below: 
  

				
	 Period

	  	Amount

		
	 December 31, 2003
	  	$	7,800,000
		
	 March 31, 2004
	  	$	7,300,000
		
	 June 30, 2004
	  	$	3,100,000

  
 Any such adjustment
to EBITDA under this clause (ii)(B) shall be calculated on a pro-rated net revenue basis multiplied by 90% for the applicable period pursuant to a compliance schedule reasonably satisfactory to the Administrative Agent. 
  
 (iii) Total Leverage Ratio. On December 31, 2003, the
Total Leverage Ratio shall not exceed 5.75x and commencing on the last day of the fiscal quarter ending March 31, 2004, and measured on the last day of each fiscal quarter thereafter until the Termination Date, the Total Leverage Ratio shall not
exceed the ratio set forth below opposite the applicable date: 
  

			
	 The last day of the fiscal quarter ending:

	  	Ratio

		
	 March 31, 2004 – June 30, 2004
	  	5.5x
		
	 September 30, 2004 – December 31, 2004
	  	5.0x
		
	 March 31, 2005 – June 30, 2006
	  	4.5x

 Whenever the Total Leverage Ratio is computed for any purpose under this Agreement, if
the computation is being made with respect to a period that ends (A) on the last day of a fiscal quarter, then the Consolidated debt and Consolidated EBITDA, for purposes of such computation, shall be the Consolidated debt and Consolidated EBITDA
for the twelve-month period ended on such last day of such fiscal quarter, or (B) on a day other than the last day of a fiscal quarter, then the Consolidated debt and Consolidated EBITDA, for purposes of such computation, shall be the Consolidated
debt and Consolidated EBITDA for the most recently completed twelve-month period 
  
 (iv) Interest Coverage Ratio. Commencing on the last day of the fiscal quarter ending December 31, 2003, and measured on the last
day of each fiscal quarter thereafter until the Termination Date, the Interest Coverage Ratio shall not be less than the ratio set forth below opposite the applicable date: 
  

			
	 The last day of the fiscal quarter ending:

	  	Ratio

		
	 December 31, 2003 – June 30, 2004
	  	2.5x
		
	 September 30, 2004 – December 31, 2004
	  	3.0x
		
	 March 31, 2005 – June 30, 2005
	  	3.5x
		
	 September 30, 2005 – June 30, 2006
	  	4.0x

  
 (v)
Minimum Cash. Permit the sum of (A) cash-on-hand and (B) Cash Equivalents, in each case not subject to a Lien (other than Liens in favor of the Collateral Agent pursuant to the Loan Documents and Liens in favor of the Collateral Agent
pursuant to the Second Lien Loan Documents) or the use of which is otherwise restricted, to be less than (1) $10,000,000 from the Amendment Effective Date through October 29, 2003, (2) $19,250,000 from October 30, 2003 through such date on which the
Borrower is no longer required to maintain a segregated account pursuant to Section 5.01(n)(iv) and (3) $10,000,000 thereafter. The amount on deposit in the segregated account maintained pursuant to Section 5.01(n)(iv) shall not be deemed to
constitute cash-on-hand or Cash Equivalents for the purposes of this Section 5.02(q)(v). 
  
 In the event that the Borrower reverses any restructuring charge previously included in EBITDA and used in the calculation of maximum Capital Expenditures or the Senior Debt Ratio pursuant to this Section 5.02(q), it
shall be required to demonstrate retroactive compliance with such financial covenants set forth above in this Section 5.02(q) for the affected periods. 

 In the event that the actual Capital Expenditures, the Senior Debt Ratio or the Total Leverage Ratio
exceeds the applicable amount set forth above in this Section 5.02(q), or the Interest Coverage Ratio no longer exceeds the applicable amount set forth above in this Section 5.02(q), or the aggregate amount of cash and Cash Equivalents is less than
the required amount set forth above in this Section 5.02(q), then within 60 days after the date of the applicable Financial Covenants Certificate, the Borrower shall (i) in the case of an excess with respect to Capital Expenditures, prepay the
Advances by the amount by which such actual Capital Expenditures exceed the maximum Capital Expenditures, as set forth in Section 2.05(b)(v), (ii) in the case of an excess with respect to the Senior Debt Ratio, the Total Leverage Ratio or the
Interest Coverage Ratio, as the case may be, prepay the Advances to the extent necessary to comply with the Senior Debt Ratio, the Total Leverage Ratio or the Interest Coverage Ratio, as applicable, as set forth in Section 2.05(b)(vi), or (iii)
increase the amount of cash and Cash Equivalents to no less than the amount required by this Section 5.02(q), as applicable, and the Borrower’s failure to comply with the applicable covenant in this Section 5.02(q) shall not constitute a
Default unless the Borrower fails to take the applicable corrective action specified above within such 60-day period. 
  

 Exhibit B – Senior Credit Agreement 
  
 [INTENTIONALLY OMITTED] 
  

 Exhibit C –Second Lien Credit Agreement 
  
 [INTENTIONALLY OMITTED] 
  

 Exhibit D –Acknowledgment, Consent & Waiver/Release Agreement 
  
 [INTENTIONALLY OMITTED]Exhibit 10.11.2

 EXHIBIT 10.11.2 
  
 SECOND AMENDED AND RESTATED SECURITY AGREEMENT 
  
 Dated as of October 6, 2003 
  
 from 
  
 The Grantors referred to herein 
  
 as Grantors 
  
 to

  
 Wells Fargo Bank Minnesota, National Association 
  
 as Collateral Agent 

 TABLE OF CONTENTS 
  

					
			
	 SECTION 1.
	  	Grant of Security	  	3
			
	 SECTION 2.
	  	Security for Obligations	  	8
			
	 SECTION 3.
	  	Grantors Remain Liable	  	8
			
	 SECTION 4.
	  	Delivery and Control of Security Collateral	  	9
			
	 SECTION 5.
	  	Delivery and Control of the Account Collateral; Maintaining the Collateral Account.	  	10
			
	 SECTION 6.
	  	Investing of Amounts in the Collateral Account	  	11
			
	 SECTION 7.
	  	Release of Amounts	  	11
			
	 SECTION 8.
	  	Representations and Warranties	  	11
			
	 SECTION 9.
	  	Further Assurances.	  	15
			
	 SECTION 10.
	  	As to Equipment and Inventory.	  	16
			
	 SECTION 11.
	  	Insurance.	  	16
			
	 SECTION 12.
	  	Place of Perfection; Records; Collection of Receivables.	  	17
			
	 SECTION 13.
	  	As to Intellectual Property Collateral.	  	18
			
	 SECTION 14.
	  	Voting Rights; Dividends; Etc.	  	20
			
	 SECTION 15.
	  	As to the Assigned Agreements.	  	21
			
	 SECTION 16.
	  	Payments Under the Assigned Agreements.	  	22
			
	 SECTION 17.
	  	Transfers and Other Liens; Additional Shares.	  	23
			
	 SECTION 18.
	  	Collateral Agent Appointed Attorney-in-Fact	  	23
			
	 SECTION 19.
	  	Collateral Agent May Perform	  	23
			
	 SECTION 20.
	  	The Collateral Agent’s Duties.	  	24
			
	 SECTION 21.
	  	Remedies	  	24
			
	 SECTION 22.
	  	Indemnity and Expenses.	  	27
			
	 SECTION 23.
	  	Amendments; Waivers; Additional Grantors; Etc.	  	27

  

 i 

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

  

 ii 

					
	 Schedules
	  	 	  	 
	 Schedule I
	  	-	  	Pledged Shares and Pledged Debt
	 Schedule II
	  	-	  	Assigned Agreements
	 Schedule III
	  	-	  	Locations of Equipment and Inventory
	 Schedule IV
	  	-	  	Jurisdiction of Organization and Federal Tax Identification Number
	 Schedule V
	  	-	  	Patents, Trademarks and Trade Names, Copyrights and Licenses
	 Schedule VI
	  	-	  	Securities Accounts
			
	 Exhibits
	  	 	  	 
			
	 Exhibit A
	  	-	  	Form of Security Agreement Supplement
	 Exhibit B
	  	-	  	Form of Consent and Agreement
	 Exhibit C
	  	-	  	Form of Intellectual Property Security Agreement
	 Exhibit D
	  	-	  	Form of Intellectual Property Security Agreement Supplement
	 Exhibit E
	  	-	  	Form of Securities Account Control Agreement

  

 iii 

 Execution Copy 
  
 SECOND AMENDED AND RESTATED SECURITY AGREEMENT 
  
 This SECOND AMENDED AND RESTATED SECURITY AGREEMENT is dated as of October 6, 2003, among Interstate FiberNet, Inc., a Delaware corporation (the
“Borrower”), ITC^ DeltaCom, Inc. (the “Parent”), the other Persons listed on the signature pages hereto and the Additional Grantors (as defined in Section 23(b)) (the Borrower, the Parent, the Persons
so listed and the Additional Grantors being, collectively, the “Grantors”) to Wells Fargo Bank Minnesota, National Association, as collateral agent (together with any successor collateral agent appointed pursuant to Article
VIII of the Second Amended Credit Agreement (as hereinafter defined), the “Collateral Agent”) for the Secured Parties. Any capitalized term used herein and not otherwise defined has the meaning set forth in the Second
Amended Credit Agreement. 
  
 PRELIMINARY STATEMENTS:

  
 1. The Borrower and the other loan parties named therein
entered into a Credit Agreement dated as of April 5, 2000 (the “Original ITCD Credit Agreement”), with the lender parties and the agents named therein, pursuant to which certain of the Grantors executed and
delivered to the collateral agent named therein a Security Agreement, dated as of April 5, 2000 (the “Initial Security Agreement”). 
  
 2. In order to restructure, continue, convert and consolidate the loans advanced to the Borrower by the lender parties under the Original ITCD Credit
Agreement, the lender parties named therein, the loan parties named therein and the agents named therein entered into an Amended and Restated Credit Agreement, dated as of October 29, 2002 (the “Amended and Restated Credit
Agreement”), pursuant to which certain of the Grantors executed and delivered to the collateral agent named therein the Amended and Restated Security Agreement, dated as of October 29, 2002 (the “Amended and Restated Security
Agreement”). 
  
 3. Pursuant to a letter, dated April
15, 2003, Morgan Stanley Senior Funding, Inc. (“Morgan Stanley”) resigned as administrative agent and Morgan Stanley & Co. Incorporated resigned as collateral agent under the Amended and Restated Credit Agreement, and
pursuant to that certain Successor Agent Agreement, dated as of September 23, 2003, among Wells Fargo, Morgan Stanley, Morgan Stanley & Co. Incorporated and the lender parties named therein (the “Successor Agent
Agreement”), such lender parties appointed Wells Fargo Bank Minnesota, National Association to act as Administrative Agent and Collateral Agent under the Amended and Restated Credit Agreement. 
  
 4. The Board of Directors of the Parent has determined that it is advisable
and in the best interests of the Parent’s stockholders, and consistent with and in furtherance of the Parent’s business strategies and goals, for the Parent to acquire indirectly all of the outstanding shares of BTI Telecom Corp., a North
Carolina corporation (“BTI”), through the merger of 8DBC1 Corp., a North Carolina corporation and wholly owned direct subsidiary of the 

 Parent (“Merger Co.”), with and into BTI (the “Merger”) upon the terms
and subject to the conditions set forth in the Agreement and Plan of Merger dated as of July 2, 2003, among BTI, the parties identified on the signature pages thereto as the “WCAS Securityholders,” the Parent and Merger Co.
(as amended, the “Merger Agreement”). 
  
 5. In connection with the closing of the transactions contemplated by the Merger Agreement and in order to restructure, continue, convert and consolidate (i) the loans advanced to the Borrower by the lender parties under the Original ITCD
Credit Agreement and the Amended and Restated Credit Agreement and (ii) $30,000,000 of the principal amount of the loans advanced to BTI Telecom, Inc. (“BTI, Inc.”) under the Original BTI Credit Agreement, the Lender
Parties, the Loan Parties and the Agents have entered into the Second Amended and Restated Credit Agreement, dated as of October 6, 2003 (as may be amended from time to time, the “Second Amended Credit Agreement”).

  
 6. In connection with the closing of the transactions
contemplated by the Merger Agreement, $55,715,294 in principal amount of the loans advanced to BTI, Inc. under the Original BTI Credit Agreement are being restructured, continued, converted and consolidated pursuant to the Credit Agreement, dated as
of October 6, 2003, among the Parent, the Borrower, the subsidiary guarantors listed on the signature pages thereto, the banks and financial institutions listed on the signature pages thereto as Lenders and General Electric Capital Corporation, as
administrative and collateral agent for such Lenders (the “Second Lien Credit Agreement”); 
  
 7. In order to, among other things, confirm the relative priorities of the Liens on the Collateral, the parties to the Second Amended Credit Agreement and
the parties to the Second Lien Credit Agreement are entering into the Intercreditor and Subordination Agreement; 
  
 8. Pursuant to the Second Amended Credit Agreement, each Grantor is entering into this Agreement in order to grant to the Collateral Agent for the ratable
benefit of the Secured Parties a security interest in substantially all of its personal property and fixtures now owned or hereafter acquired. 
  
 9. Each Grantor is the owner of the shares (the “Initial Pledged Shares”) of capital stock set forth opposite such Grantor’s
name on and as otherwise described in Part I of Schedule I hereto and issued by the corporations named therein and of the indebtedness (the “Initial Pledged Debt”) set forth opposite such Grantor’s name on and as
otherwise described in Part II of Schedule I hereto and issued by the obligors named therein. 
  
 10. The Borrower has opened a collateral securities account, Account No.14980702 (the “Collateral Account”), with Wells Fargo at its office at N9303-120, Sixth Street and Marquette Avenue,
Minneapolis, MN 55479 and in the name of the Collateral Agent and under the sole control and dominion of the Collateral Agent and subject to the terms of this Agreement and the Intercreditor and Subordination Agreement. 
  
 11. The Parent has security entitlements (the “Pledged Security
Entitlements”) with respect to all the financial assets (the “Pledged Financial Assets”) credited from time to time to the Parent’s accounts as otherwise described in Schedule VI (each a
“Securities Account” and collectively the “Securities Accounts”). 
  

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 12. It is a condition precedent to the execution and delivery of the Second Amended Credit Agreement that
the Grantors shall have granted the security interest and made the pledge contemplated by this Agreement. 
  
 13. Each Grantor shall derive substantial direct and indirect benefit from the transactions contemplated by the Loan Documents. 
  
 14. Unless otherwise defined in this Agreement or in the Second Amended
Credit Agreement, terms defined in Article 8 or 9 of the Uniform Commercial Code in effect in the State of New York (“N.Y. Uniform Commercial Code”) and/or in the Federal Book Entry Regulations (as defined below) are used in
this Agreement as such terms are defined in such Article 8 or 9 and/or the Federal Book Entry Regulations. The term “Federal Book Entry Regulations” means (a) the federal regulations contained in Subpart B
(“Treasury/Reserve Automated Debt Entry System (TRADES)”) governing book-entry securities consisting of U.S. Treasury bonds, notes and bills and Subpart D (“Additional Provisions”) of 31 C.F.R. Part
357, 31 C.F.R. § 357.2, § 357.10 through § 357.14 and § 357.41 through § 357.44 and (b) to the extent substantially identical to the federal regulations referred to in clause (a) above (as in effect from time to time), the
federal regulations governing other book-entry securities. 
  
 NOW, THEREFORE, in consideration of the premises and in order to induce the Lender Parties to enter into the Second Amended Credit Agreement, each Grantor hereby agrees with the Collateral Agent for the ratable benefit of the Secured
Parties that the Amended and Restated Security Agreement shall be amended and restated in its entirety as follows: 
  
 SECTION 1. Grant of Security. Subject to the terms and conditions of the Intercreditor and Subordination Agreement, each Grantor hereby pledges to
the Collateral Agent for the ratable benefit of the Secured Parties (subject to the terms of this Agreement), and hereby grants to the Collateral Agent for the ratable benefit of the Secured Parties a security interest in, such Grantor’s right,
title and interest in and to the following, in each case as to each type of property described below, whether now owned or hereafter acquired by such Grantor, wherever located, and whether now or hereafter existing or arising (collectively, the
“Collateral”): 
  
 (a)
all equipment in all of its forms, all fixtures and all parts thereof and all accessions thereto (any and all such equipment, fixtures, parts and accessions being the “Equipment”); 
  
 (b) all inventory in all of its forms including, without
limitation, (i) all raw materials and work in process therefor, finished goods thereof and materials used or consumed in the manufacture, production, preparation or shipping thereof, (ii) goods in which such Grantor has an interest in mass or a
joint or other interest or right of any kind (including, without limitation, goods in which such Grantor has an interest or right as consignee) and (iii) goods that are returned to or repossessed or stopped in transit by such Grantor) and all
accessions thereto and products thereof and documents therefor (any and all such inventory, accessions, products and documents being the “Inventory”); 
  

 3 

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

 4 

 title or interest in any manner and the certificates or instruments, if any, representing or evidencing
such investment property, and all dividends, interest, distributions, value, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of such investment
property; 
  
 (e) each of the agreements listed
on Schedule II hereto, each of the agreements set forth on the supplemental list of Material Contracts delivered by the Parent pursuant to Section 5.01(n)(iii) of the Second Amended Credit Agreement (the “Supplemental List”),
and each Hedge Agreement to which such Grantor is now or may hereafter become a party, in each case as such agreements may be amended, amended and restated, supplemented or otherwise modified from time to time (collectively, the “Assigned
Agreements”), including, without limitation, (i) all rights of such Grantor to receive moneys due and to become due under or pursuant to the Assigned Agreements, (ii) all rights of such Grantor to receive proceeds of any insurance,
indemnity, warranty or guaranty with respect to the Assigned Agreements, (iii) claims of such Grantor for damages arising out of or for breach of or default under the Assigned Agreements and (iv) the right of such Grantor to terminate the Assigned
Agreements, to perform thereunder and to compel performance and otherwise exercise all remedies thereunder (all such Collateral being the “Agreement Collateral”); 
  
 (f) the following (collectively, the “Account Collateral”): 
  
 (i) the Collateral Account, all financial assets from time
to time credited to the Collateral Account (including, without limitation, all Cash Equivalents from time to time credited to the Collateral Account) and all dividends interest, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such financial assets; 
  
 (ii) all deposit accounts of such Grantor from time to time, all funds held therein and all certificates and instruments, if any, from
time to time representing or evidencing such deposit accounts, other than any deposit account (including funds held therein and all certificates or instruments representing or evidencing such deposit accounts) that is used solely for the purpose of
holding or making payment of payroll or employee incentive plans (“Payroll Accounts”); 
  
 (iii) all notes, certificates of deposit, deposit accounts, checks and other instruments from time to time delivered to or otherwise
possessed by the Collateral Agent for or on behalf of such Grantor, including, without limitation, those delivered or possessed in substitution for or in addition to any or all of the then existing Account Collateral; and 
  
 (iv) all interest, dividends, cash, instruments and other
property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the then existing Account Collateral; and 
  

 5 

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

 6 

 (iv) all confidential and proprietary information, including, without limitation,
know-how, trade secrets, manufacturing and production processes and techniques, inventions, research and development information, technical data, financial, marketing and business data, pricing and cost information, business and marketing plans and
customer and supplier lists and information (the “Trade Secrets”); 
  
 (v) all computer software programs and databases (including, without limitation, source code, object code and all related applications and
data files), firmware and documentation and materials relating thereto, and all rights with respect to the foregoing, together with any and all options, warranties, service contracts, program services, test rights, maintenance rights, improvement
rights, renewal rights and indemnifications and any substitutions, replacements, additions or model conversions of any of the foregoing (the “Computer Software”); 
  
 (vi) all license agreements, permits, authorizations and franchises, whether with respect to the Patents,
Trademarks, Copyrights, Trade Secrets or Computer Software or with respect to the patents, trademarks, copyrights, trade secrets, computer software or other proprietary right of any other Person, including, without limitation, the license agreements
set forth in Schedule V hereto (as such Schedule V may be supplemented from time to time by IP Security Agreement Supplements executed and delivered by such Grantor to the Collateral Agent from time to time), and all income, royalties and other
payments now or hereafter due and/or payable with respect thereto, subject, in each case, to the terms of such license agreements, permits, authorizations and franchises (the “Licenses”); and 
  
 (vii) any and all claims for damages for past, present and
future infringement, misappropriation or breach with respect to the Patents, Trademarks, Copyrights, Trade Secrets, Computer Software or Licenses together with the right, but not the obligation, to sue for and collect, or otherwise recover, such
damages; and 
  
 (h) all proceeds of any and all
of the Collateral (including, without limitation, proceeds that constitute property of the types described in clauses (a) through (g) of this Section 1 and this clause (h)) and, to the extent not otherwise included, all (i) payments under insurance
(whether or not the Collateral Agent is the loss payee thereof), or any indemnity, warranty or guaranty, payable by reason of loss or damage to or otherwise with respect to any of the foregoing Collateral and (ii) cash. 
  
 Notwithstanding anything in this Section 1 or any other provision of this
Agreement to the contrary, the Collateral shall not include: (i) any general intangibles or other rights or property arising under or subject to any contracts, instruments, licenses, permits or other documents (including, without limitation, the
Assigned Agreements referred to in the third 
  

 7 

 sentence of Section 8(g)) as to which the grant of a security interest would constitute a violation of a valid and
enforceable restriction (whether arising by contract or under law or governmental regulation) in favor of a third party (including a governmental authority) on such grant or a violation of law or governmental regulation, unless and until any
required consents shall have been obtained or, (ii) any equipment and related computer programs, documentation, licenses and sublicenses, and any other property, and any additions, attachments and accessions to, and replacements of, any of the
foregoing, any agreements with the lessor or supplier of any or all of the foregoing and purchase orders submitted to such supplier, and any products and proceeds of any of the foregoing, pledged as collateral to secure, or otherwise subject to (A)
the GECC Capital Lease, the NTFC Capital Lease or any other Capitalized Lease constituting Surviving Debt as of the Amendment Effective Date or (B) any Capitalized Lease permitted under Section 5.02(b) of the Second Amended Credit Agreement and
entered into by any Loan Party after the Amendment Effective Date. 
  
 SECTION 2. Security for Obligations. This Agreement secures, in the case of each Grantor, the payment of all Obligations of such Grantor now or hereafter existing under the Loan Documents, whether direct or indirect, absolute or
contingent, and whether for principal, reimbursement obligations, interest, fees, premiums, penalties, indemnifications, contract causes of action, costs, expenses or otherwise (all such Obligations being the “Secured
Obligations”). 
  
 The parties hereto intend to
maintain the validity, effectiveness, enforceability, perfection and priority of the Collateral Documents delivered under the Original ITCD Credit Agreement and the Amended and Restated Credit Agreement (the “Original Security
Documents”) and this Agreement is intended, inter alia, to extend the obligations and indebtedness secured by the security interests and pledges created and affected by the Original Security Documents, in each case, except
as specifically provided herein, including, without limitation, in the last paragraph of Section 1, without terminating, limiting, modifying or otherwise affecting the validity, effectiveness, enforceability, perfection and priority of the security
interests or the pledges created and affected in respect thereof. To the extent that any security interest or pledge granted pursuant to the Original Security Documents relates to collateral in which the Grantors have previously granted a security
interest to the Collateral Agent, this Agreement shall, except as specifically provided herein, including, without limitation, in the last paragraph of Section 1, confirm the validity, effectiveness, enforceability and continuation of such security
interest or pledge as against the Grantors. All of the terms and provisions of the Original Security Documents are hereby confirmed and ratified in all respects, except as specifically modified herein. 
  
 Without limiting the generality of the foregoing, this Agreement secures, as
to each Grantor, the payment of all amounts that constitute part of the Secured Obligations and would be owed by such Grantor to any Secured Party under the Loan Documents but for the fact that they are unenforceable or not allowable due to the
existence of a bankruptcy, reorganization or similar proceeding involving a Loan Party. 
  
 SECTION 3. Grantors Remain Liable. Anything herein to the contrary notwithstanding, (a) each Grantor shall remain liable under the contracts and agreements included in such Grantor’s Collateral to the
extent set forth therein to perform all of its duties and 
  

 8 

 obligations thereunder to the same extent as if this Agreement had not been executed, (b) the exercise by the Collateral
Agent of any of the rights hereunder shall not release any Grantor from any of its duties or obligations under the contracts and agreements included in the Collateral and (c) no Secured Party shall have any obligation or liability under the
contracts and agreements included in the Collateral by reason of this Agreement or any other Loan Document, nor shall any Secured Party be obligated to perform any of the obligations or duties of any Grantor thereunder or to take any action to
collect or enforce any claim for payment assigned hereunder. 
  
 SECTION 4. Delivery and Control of Security Collateral 
  
 (a) All certificates or instruments representing or evidencing Security Collateral shall be delivered to and held by or on behalf of the Collateral Agent pursuant hereto and the Intercreditor and Subordination
Agreement and shall be in suitable form for transfer by delivery, or shall be accompanied by duly executed instruments of transfer or assignment in blank, all in form and substance satisfactory to the Collateral Agent. The Collateral Agent shall
have the right, at any time in its discretion and without notice to any Grantor, to transfer to or to register in the name of the Collateral Agent or any of its nominees any or all of the Security Collateral, subject only to the revocable rights
specified in Section 14(a). In addition, the Collateral Agent shall have the right at any time to exchange certificates or instruments representing or evidencing Security Collateral for certificates or instruments of smaller or larger denominations.
Also, the Collateral Agent shall have the right at any time to convert Security Collateral consisting of financial assets credited to the securities account to Security Collateral consisting of financial assets held directly by the Collateral Agent,
and to convert Security Collateral consisting of financial assets held directly by the Collateral Agent to Security Collateral consisting of financial assets credited to the securities account. 
  
 (b) With respect to any Security Collateral in which any
Grantor has any right, title or interest and that constitutes an uncertificated security, such Grantor shall cause the issuer thereof either (i) to register the Collateral Agent as the registered owner of such security or (ii) to agree in writing
with such Grantor and the Collateral Agent that such issuer shall comply with instructions with respect to such security originated by the Collateral Agent without further consent of such Grantor, such agreement to be in form and substance
satisfactory to the Collateral Agent. 
  
 (c)
With respect to any Security Collateral in which any Grantor has any right, title or interest and that constitutes a security entitlement, such Grantor shall cause the securities intermediary with respect to such security entitlement either (i) to
identify in its records the Collateral Agent as the entitlement holder of such security entitlement against such securities intermediary or (ii) to agree in writing with such Grantor and the Collateral Agent that such securities intermediary shall
comply with entitlement orders (that is, notifications communicated to such securities intermediary directing transfer or redemption of the financial asset to which such Grantor has a security entitlement) originated by the Collateral Agent without
further consent of such Grantor, such agreement to be substantially in the form of Exhibit E attached hereto or otherwise in form and substance satisfactory to the Collateral Agent (such agreement being a “Securities Account Control
Agreement”). 
  

 9 

 (d) With respect to any Security Collateral in which any Grantor has any right, title or
interest and that constitutes a commodity contract, such Grantor shall cause the commodity intermediary with respect to such commodity contract to agree in writing with such Grantor and the Collateral Agent that such commodity intermediary shall
apply any value distributed on account of such commodity contract as directed by the Collateral Agent without further consent of such Grantor, such agreement to be in form and substance satisfactory to the Collateral Agent (such agreement being a
“Commodity Account Control Agreement,” and all such agreements together with all Securities Account Control Agreements, being collectively, the “Control Agreements”). 
  
 (e) No Grantor shall change or add any securities
intermediary or commodity intermediary that maintains any securities account or commodity account in which any of the Collateral is credited or carried, or change or add any such securities account or commodity account, in each case without first
complying with the above provisions of this Section 4 in order to perfect the security interest granted hereunder in such Collateral. 
  
 SECTION 5. Delivery and Control of the Account Collateral; Maintaining the Collateral Account. 
  
 (a) Promptly after opening an account (other than a Payroll
Account) with a bank or other financial institution not subject to an account control agreement, each Grantor shall cause the execution and delivery of an account control agreement or cash management agreement, as applicable, with such bank or
financial institution in favor of the Collateral Agent, in form and substance reasonably satisfactory to the Collateral Agent. 
  
 (b) So long as any Advance or any other Obligation of any Loan Party under any Loan Document shall remain unpaid, any Secured Hedge
Agreement shall be in effect or any Lender shall have any Commitment under the Second Amended Credit Agreement: 
  
 (i) The Borrower shall maintain the Collateral Account with the Collateral Agent or another commercial bank acceptable to the Collateral
Agent and that has entered into a Securities Account Control Agreement (the Collateral Agent or any bank with which the Collateral Account is maintained being a “Collateral Bank”). 
  
 (ii) It shall be a term and condition of the Collateral
Account, notwithstanding any term or condition to the contrary in any other agreement relating to the Collateral Account, as the case may be, and except as otherwise provided by the provisions of Sections 7 and 21, that no amount (including interest
on Cash Equivalents credited thereto) shall be paid or released to or for the account of, or withdrawn by or for the account of, the Borrower or any other Person from the Collateral Account. 
  

 10 

 (iii) Each Grantor shall deposit in the Collateral Account or pay to the Collateral Agent
for deposit in the Collateral Account all funds contemplated by Section 2.05(b)(ii) of the Second Amended Credit Agreement in accordance with the terms thereof. 
  

SECTION 6. Investing of Amounts in the Collateral Account. The Collateral Agent shall, subject to the provisions of Sections 7 and 21, from time
to time direct the Collateral Bank to (a) invest amounts received with respect to the Collateral Account in such Cash Equivalents credited to the Collateral Account as the Borrower may select and the Collateral Agent may approve and (b) invest
interest paid on the Cash Equivalents referred to in clause (a) above, and reinvest other proceeds of any such Cash Equivalents that may mature or be sold, in each case in such Cash Equivalents credited to the Collateral Account as the Borrower may
select and the Collateral Agent may approve. Interest and proceeds that are not invested or reinvested in Cash Equivalents as provided above shall be deposited and held in a deposit account with the Collateral Bank in the name of the Collateral
Agent and under the sole control and dominion of the Collateral Agent, such deposit account to be deemed to constitute part of the Collateral Account. In addition, the Collateral Agent shall have the right at any time to direct the Collateral Bank
to exchange such Cash Equivalents for similar Cash Equivalents of smaller or larger determinations, or for other Cash Equivalents, credited to the Collateral Account. 
  
 SECTION 7. Release of Amounts. So long as no Default shall have occurred and be continuing, the Collateral Agent
shall direct the applicable Collateral Bank to pay and release to the Borrower or at its order or, at the request of the Borrower, to the Administrative Agent to be applied to the Obligations of the Borrower under the Loan Documents, such amount, if
any, as is then on deposit in the Collateral Account, as the case may be, to the extent permitted to be released under the terms of the Second Amended Credit Agreement. 
  
 SECTION 8. Representations and Warranties. Each Grantor represents and warrants as follows: 
  
 (a) All of the Equipment and Inventory of such Grantor are
located at the places specified therefor in Schedule III hereto or at such other places as such Grantor shall have specified in writing to the Collateral Agent (and upon notification to the Collateral Agent of such additional places, Schedule III
shall be automatically amended to include such other places). The jurisdiction of organization of such Grantor is specified in Schedule IV hereto, as such Schedule IV may be amended from time to time pursuant to Section 12(a). Such Grantor’s
federal tax identification number is set forth opposite such Grantor’s name in Schedule IV hereto. All Security Collateral consisting of certificated securities and instruments has been delivered to the Collateral Agent. None of the Receivables
or Agreement Collateral is evidenced by a promissory note or other instrument that has not been delivered to the Collateral Agent. 
  
 (b) Such Grantor is the legal and beneficial owner of the Collateral of such Grantor free and clear of any Lien, claim, option or right of
others, except for the security interest created under this Agreement or permitted under the Second Amended Credit Agreement or the Second Lien Credit Agreement and except for rights of others under any License. No effective financing statement or
other instrument similar in effect 
  

 11 

 covering all or any part of such Collateral or listing such Grantor or any trade name of such Grantor as
debtor is on file in any recording office, except such as may have been filed in favor of the Collateral Agent relating to the Loan Documents or as otherwise permitted under the Second Amended Credit Agreement or the Second Lien Credit Agreement.
Such Grantor has the trade names listed on Schedule V hereto. 
  
 (c) Such Grantor has exclusive possession and control of the Equipment and Inventory other than Inventory stored at any leased premises or warehouse for which a landlord’s or warehouseman’s agreement, in
form and substance reasonably satisfactory to the Collateral Agent, is in effect and which leased premises or warehouse is so indicated by an asterisk on Schedule III hereto, or otherwise specified by such Grantor in writing to the Collateral Agent
(and upon notification to the Collateral Agent of such additional leased premises or warehouse, Schedule III shall be automatically amended to include such other leased premises or warehouse with an asterisk designation). 
  
 (d) The Pledged Shares pledged by such Grantor hereunder
have been duly authorized and validly issued and are fully paid and non-assessable. The Pledged Debt pledged by such Grantor hereunder has been duly authorized, authenticated or issued and delivered, is the legal, valid and binding obligation of the
issuers thereof, is evidenced by one or more promissory notes (which notes have been delivered to the Collateral Agent) and is not in default. 
  
 (e) The Initial Pledged Shares constitute the percentage of the issued and outstanding shares of stock of the issuers thereof indicated on
Schedule I hereto as of the date hereof. The Initial Pledged Debt constitutes all of the outstanding indebtedness owed to such Grantor by the issuers thereof and is outstanding, as of the date hereof, in the principal amount indicated on Schedule I
hereto as of the date hereof. 
  
 (f) All of the
investment property owned by such Grantor as of the date hereof is listed on Schedule I hereto. 
  
 (g) The Assigned Agreements to which such Grantor is a party, true and complete copies of which (other than the Hedge Agreements) have
been furnished to each Secured Party, have been duly authorized, executed and delivered by all parties thereto, are in full force and effect and are binding upon and enforceable against all parties thereto in accordance with their terms. There
exists no default under any Assigned Agreement to which such Grantor is a party by any party thereto. Each Grantor shall use its reasonable best efforts to obtain, (x) on or prior to 120 days from the date hereof, a consent from each party to the
Assigned Agreements listed on Part A to Schedule II hereto to which such Grantor is a party and (y) within 120 days of delivery of the Supplemental List, a consent from each party to the Assigned Agreements listed therein to which such Grantor is a
party (provided, that the Collateral Agent may, in its sole discretion, waive the requirements of this provision with respect to any such Assigned Agreement), all in substantially the form of Exhibit B hereto or otherwise in form and
substance reasonably satisfactory to the Collateral Agent, to the assignment of the Agreement Collateral to the Collateral Agent pursuant to this Agreement. Nothing herein shall be construed to require any Grantor to give additional consideration of
any kind under any Assigned Agreement in connection with obtaining of any consents under this Section 8(g). 
  

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 (h) All filings and other actions necessary or desirable to perfect and protect the
security interest in the Collateral of such Grantor created under this Agreement have been duly made or taken and are in full force and effect or have been delivered to the Collateral Agent for filing or other appropriate action, and this Agreement
creates in favor of the Collateral Agent for the benefit of the Secured Parties a valid and, when such filings and other actions have been completed, perfected first priority security interest in the Collateral of such Grantor, securing the payment
of the Secured Obligations. 
  
 (i) No
authorization or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for (i) the grant by such Grantor of the pledge and security interest granted hereunder
or for the execution, delivery or performance of this Agreement by such Grantor, (ii) the perfection or maintenance of the pledge and security interest created hereunder (including the first priority nature of such pledge or security interest,
subject to Permitted Liens), except for the filing of financing statements and amendments to financing statements under the Uniform Commercial Code, which financing statements and amendments to financing statements have been or will be duly filed
and are or will be in full force and effect, the recordation of the Intellectual Property Security Agreements referred to in Section 13(f) with the U.S. Patent and Trademark Office and the U.S. Copyright Office, which agreements and any
amendments thereto have been or will be duly recorded and are or will be in full force and effect, the actions described in Section 4 with respect to Security Collateral, which actions have been or will be taken and are or will be in full force and
effect, and the actions contemplated by the Second Amended Credit Agreement, or (iii) the exercise by the Collateral Agent of its voting or other rights provided for in this Agreement or the remedies in respect of the Collateral pursuant to this
Agreement, except as may be required in connection with the disposition of any portion of the Security Collateral by laws affecting the offering and sale of securities generally. 
  
 (j) The Inventory that has been produced or distributed by such Grantor has been produced in compliance with
all requirements of applicable law, including, without limitation, the Fair Labor Standards Act. 
  
 (k) As to itself and its Intellectual Property Collateral: 
  
 (i) The rights of such Grantor in or to the Intellectual Property Collateral do not conflict with,
misappropriate or infringe upon the intellectual property rights of any third party, and no claim has been asserted that the use of such Intellectual Property Collateral does or may infringe upon the intellectual property rights of any third party.

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

 

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 (iii) The Intellectual Property Collateral set forth on Schedule V hereto includes all of
the patents, patent applications, trademark registrations and applications, copyright registrations and applications and Licenses, other than commercial off-the-shelf software licenses, owned by such Grantor, except as permitted under the Second
Amended Credit Agreement or the Second Lien Credit Agreement. 
  
 (iv) The Intellectual Property Collateral is subsisting and has not been adjudged invalid or unenforceable in whole or part and, to the best of such Grantor’s knowledge, is valid and enforceable. Such Grantor is
not aware of any uses of any item of Intellectual Property Collateral that could be expected to lead to such item becoming invalid or unenforceable. 
  
 (v) Such Grantor has made or performed all commercially reasonable filings, recordings and other acts and has paid all required fees and
taxes to maintain and protect its interest in each and every material item of Intellectual Property Collateral in full force and effect throughout the world, and to protect and maintain its interest therein, including without limitation, any
recordation of any of its interests in the Patents and Trademarks with the U.S. Patent and Trademark Office and in corresponding national and international patent offices, and any recordation of any of its interests in the Copyrights with the U.S.
Copyright Office and in corresponding national and international copyright offices. Such Grantor has used commercially reasonable statutory notice in connection with its use of each material patent, trademark and copyright of the Intellectual
Property Collateral. 
  
 (vi) No action, suit,
investigation, litigation or proceeding has been asserted or is pending or, to the best of such Grantor’s knowledge, threatened against such Grantor (i) based upon or challenging or seeking to deny or restrict the use of any of the Intellectual
Property Collateral or (ii) alleging that any services provided by, processes used by, or products manufactured or sold by, such Grantor infringe upon or misappropriate any patent, trademark, copyright or any other proprietary right of any third
party. To the best of such Grantor’s knowledge, no Person is engaging in any activity that infringes upon or misappropriates the Intellectual Property Collateral or upon the rights of such Grantor therein. Except as set forth on Schedule V
hereto, such Grantor has not granted any license, release, covenant not to sue, non-assertion assurance or other right to any Person with respect to any part of the Intellectual Property Collateral. The consummation of the transactions contemplated
by the Loan Documents shall not result in the termination or impairment of any of the Intellectual Property Collateral. 
  
 (vii) With respect to each License: (A) such License is valid and binding and in full force and effect and represents the entire agreement
between 
  

 14 

 the respective licensor and licensee with respect to the subject matter of such License; (B) such License
shall not cease to be valid and binding and in full force and effect on terms identical to those currently in effect as a result of the rights and interest granted herein, nor shall the grant of such rights and interest constitute a breach or
default under such License or otherwise give the licensor or licensee a right to terminate such License; (C) such Grantor has not received any notice of termination or cancellation under such License; (D) such Grantor has not received any notice of
a breach or default under such License, which breach or default has not been cured; (E) such Grantor has not granted to any other third party any rights, adverse or otherwise, under such License (except to the extent that sublicensing is permitted);
and (F) neither such Grantor nor any other party to such License is in breach or default in any material respect, and no event has occurred that, with notice or lapse of time or both, would constitute such a breach or default or permit termination,
modification or acceleration under such License. 
  
 (viii) To the best of such Grantor’s knowledge, (A) none of the Trade Secrets of such Grantor has been used, divulged, disclosed or appropriated to the detriment of such Grantor for the benefit of any other Person other than such
Grantor; (B) no employee, independent contractor or agent of such Grantor has misappropriated any trade secrets of any other Person in the course of the performance of his or her duties as an employee, independent contractor or agent of such
Grantor; and (C) no employee, independent contractor or agent of such Grantor is in default or breach of any term of any employment agreement, non-disclosure agreement, assignment of inventions agreement or similar agreement or contract relating in
any way to the protection, ownership, development, use or transfer of such Grantor’s Intellectual Property Collateral. 
  
 SECTION 9. Further Assurances. 
  
 (a) Each Grantor agrees that from time to time, at the expense of such Grantor, such Grantor shall promptly execute and deliver all
further instruments and documents, and take all further action, that may be necessary or desirable, or that the Collateral Agent may request, in order to perfect and protect any pledge or security interest granted or purported to be granted by such
Grantor hereunder or to enable the Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any Collateral of such Grantor. Without limiting the generality of the foregoing, each Grantor shall promptly, with respect
to Collateral of such Grantor: (i) mark conspicuously each chattel paper included in Receivables and, at the request of the Collateral Agent, each of its records pertaining to such Collateral with a legend, in form and substance reasonably
satisfactory to the Collateral Agent, indicating that such chattel paper or Collateral is subject to the security interest granted hereby; (ii) if any such Collateral shall be evidenced by a promissory note or other instrument or chattel paper,
deliver and pledge to the Collateral Agent hereunder such note or instrument or chattel paper duly indorsed and accompanied by duly executed instruments of transfer or assignment, all in form and substance reasonably satisfactory to the Collateral
Agent; (iii) file such financing or continuation statements, or amendments thereto, and such other instruments or notices, as 
  

 15 

 may be necessary or desirable, or as the Collateral Agent may request, in order to perfect and preserve
the security interest granted or purported to be granted by such Grantor hereunder; (iv) deliver and pledge to the Collateral Agent for the benefit of the Secured Parties certificates representing Security Collateral that constitutes certificated
securities, accompanied by undated stock or bond powers executed in blank; and (v) deliver to the Collateral Agent evidence that all other action that the Collateral Agent may deem reasonably necessary or desirable in order to perfect and protect
the security interest created by such Grantor under this Agreement has been taken. 
  
 (b) Each Grantor hereby authorizes the Collateral Agent to file one or more financing or continuation statements, and amendments thereto,
relating to all or any part of the Collateral of such Grantor. A photocopy or other reproduction of this Agreement or any financing statement covering the Collateral or any part thereof shall be sufficient as a financing statement where permitted by
law. 
  
 (c) Each Grantor shall furnish to the
Collateral Agent from time to time statements and schedules further identifying and describing the Collateral of such Grantor and such other reports in connection with such Collateral as the Collateral Agent may reasonably request, all in reasonable
detail. 
  
 SECTION 10. As to Equipment and Inventory.

  
 (a) Intentionally omitted. 
  
 (b) Each Grantor shall cause the Equipment of such Grantor
to be maintained and preserved in good working order and condition, ordinary wear and tear excepted, and shall forthwith, or in the case of any loss or damage to any of such Equipment as soon as practicable after the occurrence thereof, make or
cause to be made all repairs, replacements and other improvements in connection therewith that are necessary or desirable to such end. Each Grantor shall promptly furnish to the Collateral Agent a statement respecting any loss or damage exceeding
$500,000 to any of the Equipment or Inventory of such Grantor. 
  
 (c) Each Grantor shall pay promptly when due all property and other taxes, assessments and governmental charges or levies imposed upon, and all claims (including, without limitation, claims for labor, materials and
supplies) against, the Equipment and Inventory of such Grantor provided, however, that such Grantor shall not be required to pay or discharge any such tax, assessment, charge or claim that is being contested in good faith and by proper proceedings
and as to which appropriate reserves are being maintained, unless and until any Lien resulting therefrom attaches to its property and becomes enforceable against its other creditors. 
  
 SECTION 11. Insurance. 
  
 (a) Each Grantor shall, at its own expense, maintain insurance with respect to the Equipment and Inventory (it being understood that
Equipment and Inventory shall not include fiber optic cables) of such Grantor with responsible and reputable insurance 
  

 16 

 companies or associations in such amounts, and against such risks as is usually carried by companies
engaged in similar business and owning similar properties in the same general area in which such Grantor operates. Each policy of each Grantor for liability insurance shall (i) name such Grantor and the Collateral Agent as insured parties thereunder
(without any representation or warranty by or obligation upon the Collateral Agent) as their interests may appear, (ii) contain the agreement by the insurer that any loss thereunder shall be payable to the Collateral Agent notwithstanding any
action, inaction or breach of representation or warranty by such Grantor, (iii) provide that there shall be no recourse against the Collateral Agent for payment of premiums or other amounts with respect thereto and (iv) provide that at least 10
days’ prior written notice of cancellation or of lapse shall be given to the Collateral Agent by the insurer. Each Grantor shall, if so requested by the Collateral Agent, deliver to the Collateral Agent original or duplicate policies of such
insurance and, as often as the Collateral Agent may reasonably request, a report of a reputable insurance broker with respect to such insurance. Further, each Grantor shall, at the request of the Collateral Agent, duly execute and deliver
instruments of assignment of such insurance policies to comply with the requirements of Section 10 and cause the insurers to acknowledge notice of such assignment. 
  
 (b) Reimbursement under any liability insurance maintained by any Grantor pursuant to this Section 11 may be
paid directly to the Person who shall have incurred liability covered by such insurance. In case of any loss involving damage to Equipment or Inventory when no Event of Default shall have occurred and be continuing, the applicable Grantor shall make
or cause to be made the necessary repairs to or replacements of such Equipment or Inventory, and any proceeds of insurance properly received by or released to such Grantor shall be used by such Grantor, except as otherwise required hereunder or by
the Second Amended Credit Agreement, to pay or to reimburse for the costs of such repairs or replacements. 
  
 (c) So long as no Event of Default shall have occurred and be continuing, all insurance payments received by the Collateral Agent in
connection with any loss, damage or destruction of any Inventory or Equipment shall be released, subject to the provisions of Section 2.05(b)(ii) of the Second Amended Credit Agreement, by the Collateral Agent to the applicable Grantor for the
repair, replacement or restoration thereof. 
  
 SECTION 12.
Place of Perfection; Records; Collection of Receivables. 
  
 (a) Each Grantor shall keep its jurisdiction of organization, and originals of the Assigned Agreements to which such Grantor is a party and all originals of all chattel paper that evidence Receivables of such Grantor,
at the location therefor specified in Section 8(a) or, upon 30 days’ prior written notice to the Collateral Agent, at such other location in a jurisdiction where all actions required by Section 9 shall have been taken with respect to the
Collateral of such Grantor (and, upon the taking of such action in such jurisdiction, Schedule IV hereto shall be automatically amended to include such other location). Each Grantor shall hold and preserve its records relating to the Collateral, the
Assigned Agreements and chattel paper and shall permit representatives of the Collateral Agent at any time during normal business hours to inspect and make abstracts from such records and other documents. 
  

 17 

 (b) Except as otherwise provided in this subsection (b), each Grantor shall continue to
collect, at its own expense, all amounts due or to become due to such Grantor under the Receivables. In connection with such collections, such Grantor may take such action as such Grantor may deem necessary or advisable to enforce collection of the
Receivables; provided, however, that the Collateral Agent shall have the right at any time, upon the occurrence and during the continuance of an Event of Default and upon written notice to such Grantor of its intention to do so, to
notify the Obligors under any Receivables of the assignment of such Receivables to the Collateral Agent and to direct such Obligors to make payment of all amounts due or to become due to such Grantor thereunder directly to the Collateral Agent and,
upon such notification and at the expense of such Grantor, to enforce collection of any such Receivables, and to adjust, settle or compromise the amount or payment thereof, in the same manner and to the same extent as such Grantor might have done.
After receipt by any Grantor of the notice from the Collateral Agent referred to in the proviso to the preceding sentence, (i) all amounts and proceeds (including instruments) received by such Grantor in respect of the Receivables of such Grantor
shall be received in trust for the benefit of the Collateral Agent hereunder, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral Agent in the same form as so received (with any necessary
indorsement) to be deposited in the Collateral Account and either (A) released to such Grantor on the terms set forth in Section 7 so long as no Event of Default shall have occurred and be continuing or (B) if any Event of Default shall have
occurred and be continuing, applied as provided in Section 21(b) and (ii) such Grantor shall not adjust, settle or compromise the amount or payment of any Receivable, release wholly or partly any Obligor thereof, or allow any credit or discount
thereon. No Grantor shall permit or consent to the subordination of its right to payment under any of the Receivables to any other indebtedness or obligations of the Obligor thereof. 
  
 SECTION 13. As to Intellectual Property Collateral. 
  
 (a) Each Grantor agrees to take, at its expense, all necessary steps that such Grantor shall have determined
are commercially reasonable in the conduct of such Grantor’s business with respect to each item of its Intellectual Property Collateral, including, without limitation, in the U.S. Patent and Trademark Office, the U.S. Copyright Office and any
other governmental authority, to (i) maintain the validity and enforceability of such Intellectual Property Collateral and maintain such Intellectual Property Collateral in full force and effect and (ii) pursue the registration and maintenance of
patent, trademark or copyright registration or application now or hereafter included in the Intellectual Property Collateral of such Grantor, including, without limitation, the payment of required fees and taxes, the filing of responses to office
actions issued by the U.S. Patent and Trademark Office, the U.S. Copyright Office or other governmental authorities, the filing of applications for renewal or extension, the filing of affidavits under Sections 8 and 15 of the U.S. Trademark Act, the
filing of divisional, continuation, continuation-in-part, reissue and renewal applications or extensions, the 
  

 18 

 payment of maintenance fees and the participation in interference, reexamination, opposition,
cancellation, infringement and misappropriation proceedings. No Grantor shall discontinue use of or otherwise abandon any Intellectual Property Collateral, or abandon any right to file an application for letters patent, trademark or copyright,
unless such Grantor shall have previously determined that such use or the pursuit or maintenance of such Intellectual Property Collateral is no longer desirable in the conduct of such Grantor’s business and that the loss thereof would not be
reasonably likely to have a Material Adverse Effect, in which case, with respect to any material item of Intellectual Property Collateral so abandoned, such Grantor shall give reasonable notice of any such abandonment to the Collateral Agent.

  
 (b) Each Grantor agrees promptly to notify
the Collateral Agent if such Grantor learns (i) that any material item of the Intellectual Property Collateral may have become abandoned, placed in the public domain, invalid or unenforceable, or of any adverse determination or development regarding
such Grantor’s ownership of any material item of the Intellectual Property Collateral or its right to register the same or to keep and maintain and enforce the same, or (ii) of any adverse determination or the institution of any proceeding
(including, without limitation, the institution of any proceeding in the U.S. Patent and Trademark Office or any court) regarding any material item of the Intellectual Property Collateral. 
  
 (c) In the event that any Grantor becomes aware that any
material item of the Intellectual Property Collateral is being infringed or misappropriated by a third party and communicates such awareness to such third party, such Grantor shall reasonably notify the Collateral Agent and shall take such actions,
at its expense, as such Grantor deems reasonable and appropriate under the circumstances to protect such Intellectual Property Collateral, including, without limitation, suing for infringement or misappropriation and for an injunction against such
infringement or misappropriation. 
  
 (d) Each
Grantor shall use commercially reasonable statutory notice in connection with its use of each material item of its Intellectual Property Collateral. Except as set forth in Section 13(a), no Grantor shall do or permit any act or knowingly omit to do
any act whereby any of its Intellectual Property Collateral may lapse or become invalid or unenforceable or placed in the public domain. 
  
 (e) Each Grantor shall take all steps which it deems reasonable and appropriate under the circumstances to preserve and protect each item
of its Intellectual Property Collateral, including, without limitation, maintaining the quality of any and all products or services offered or provided under any of the Trademarks, consistent with the quality of the products and services as of the
date hereof, and taking all steps necessary to ensure that all licensed users of any of the Trademarks use such consistent standards of quality. 
  
 (f) With respect to its Intellectual Property Collateral, each Grantor agrees to execute an agreement, in substantially the form set forth
in Exhibit C hereto (an “Intellectual Property Security Agreement”), for recording the security interest granted hereunder to the Collateral Agent in such Intellectual Property Collateral with the U.S. Patent and Trademark
Office, the U.S. Copyright Office and any other governmental authorities necessary to perfect the security interest hereunder in such Intellectual Property Collateral. 
  

 19 

 (g) Each Grantor agrees that, should it obtain an ownership interest in any item of the
type set forth in Section 1(g) which is not on the date hereof a part of the Intellectual Property Collateral (the “After-Acquired Intellectual Property”), (i) the provisions of Section 1 shall automatically apply thereto,
(ii) any such After-Acquired Intellectual Property and, in the case of trademarks, the goodwill of the business connected therewith or symbolized thereby, shall automatically become part of the Intellectual Property Collateral subject to the terms
and conditions of this Agreement with respect thereto, (iii) with respect to only material items of After-Acquired Intellectual Property, such Grantor shall give written notice thereof to the Collateral Agent in accordance herewith every calendar
quarter and (iv) with respect to registrations and applications for registration of such After-Acquired Intellectual Property which are registered or filed with the U.S. Patent and Trademark Office, U.S. Copyrights Office or order governmental
authorities, such Grantor shall execute and deliver to the Collateral Agent an IP Security Agreement Supplement covering such After-Acquired Intellectual Property as “Additional Collateral” thereunder and as defined therein,
and shall record such IP Security Agreement Supplement with the U.S. Patent and Trademark Office, the U.S. Copyright Office and any other governmental authorities necessary to perfect the security interest hereunder in such After-Acquired
Intellectual Property. 
  
 SECTION 14. Voting Rights;
Dividends; Etc. 
  
 (a) So long as no Event
of Default shall have occurred and be continuing: 
  
 (i) Each Grantor shall be entitled to exercise any and all voting and other consensual rights pertaining to the Security Collateral of such Grantor or any part thereof for any purpose; provided, however, that such Grantor shall not exercise
or refrain from exercising any such right if such action would have a material adverse effect on the value of the Security Collateral or any part thereof. 
  
 (ii) Each Grantor shall be entitled to receive and retain any and all dividends, interest and other distributions paid in respect of the
Security Collateral of such Grantor if and to the extent that the payment thereof is not otherwise prohibited by the terms of the Loan Documents; provided, however, that any and all: 
  
 (A) dividends, interest and other distributions paid or
payable other than in cash in respect of, and instruments and other property received, receivable or otherwise distributed in respect of, or in exchange for, any Security Collateral, 
  
 (B) dividends and other distributions paid or payable in cash in respect of any Security Collateral in
connection with a partial or total liquidation or dissolution or in connection with a reduction of capital, capital surplus or paid-in-surplus, and 
  

 20 

 (C) cash paid, payable or otherwise distributed in respect of principal of, or in
redemption of, or in exchange for, any Security Collateral, 
  
 shall be, and shall be forthwith delivered to the Collateral Agent to hold as Security Collateral and shall, if received by such Grantor, be received in trust for the benefit of the Collateral Agent, be segregated from the other property or
funds of such Grantor and be forthwith delivered to the Collateral Agent as Security Collateral in the same form as so received (with any necessary indorsement). 
  
 (iii) The Collateral Agent shall execute and deliver (or cause to be executed and delivered) to each Grantor
all such proxies and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and other rights that it is entitled to exercise pursuant to paragraph (i) above and to receive the
dividends or interest payments that it is authorized to receive and retain pursuant to paragraph (ii) above. 
  
 (b) Upon the occurrence and during the continuance of an Event of Default: 
  
 (i) All rights of each Grantor (x) to exercise or refrain from exercising the voting and other consensual
rights that it would otherwise be entitled to exercise pursuant to Section 14(a)(i) shall, upon notice to such Grantor by the Collateral Agent, cease and (y) to receive the dividends, interest and other distributions that it would otherwise be
authorized to receive and retain pursuant to Section 14(a)(ii) shall automatically cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall thereupon have the sole right to exercise or refrain from exercising
such voting and other consensual rights and to receive and hold as Security Collateral such dividends, interest and other distributions. 
  
 (ii) All dividends, interest and other distributions that are received by any Grantor contrary to the provisions of paragraph (i) of this
Section 14(b) shall be received in trust for the benefit of the Collateral Agent, shall be segregated from other funds of such Grantor and shall be forthwith paid over to the Collateral Agent as Security Collateral in the same form as so received
(with any necessary indorsement). 
  
 (iii) The
Collateral Agent shall be authorized to send to each Securities Intermediary or Commodity Intermediary as defined in and under any Control Agreement a notice of exclusive control under such Control Agreement. 
  
 SECTION 15. As to the Assigned Agreements. 
  
 (a) Each Grantor shall at its expense: 
  
 (i) perform and observe all terms and provisions of the
Assigned Agreements to be performed or observed by it, maintain the Assigned Agreements 
  

 21 

 to which it is a party in full force and effect, enforce the Assigned Agreements to which it is a party
in accordance with the terms thereof and take all such action to such end as may be reasonably requested from time to time by the Collateral Agent except where the failure to do so would not have a Material Adverse Effect; and 
  
 (ii) and from time to time (A) furnish to the Collateral
Agent such information and reports regarding the Assigned Agreements and such other Collateral of such Grantor as the Collateral Agent may reasonably request and (B) upon request of the Collateral Agent, make to each other party to any Assigned
Agreement to which it is a party such demands and requests for information and reports or for action as such Grantor is entitled to make thereunder. 
  
 (b) Each Grantor agrees that it shall not, except to the extent otherwise permitted under the Second Amended Credit Agreement: 

 
 (i) cancel or terminate any Assigned Agreement to which
it is a party or consent to or accept any cancellation or termination thereof; 
  
 (ii) amend, amend and restate, supplement or otherwise modify any such Assigned Agreement or give any consent, waiver or approval
thereunder; 
  
 (iii) waive any default under or
breach of any such Assigned Agreement; or 
  
 (iv) take any other action in connection with any such Assigned Agreement that would impair the value of the interests or rights of such Grantor thereunder or that would impair the interests or rights of any Secured Party. 
  
 (c) Each Grantor hereby consents on its own behalf and on
behalf of its Subsidiaries to the assignment and pledge to the Collateral Agent for benefit of the Secured Parties of each Assigned Agreement to which it is a party by any other Grantor hereunder. 
  
 SECTION 16. Payments Under the Assigned Agreements. 
  
 (a) Each Grantor agrees (and as part of the consents such
Grantor has agreed to request pursuant to Section 8(g) will instruct each other party to each Assigned Agreement which is the subject of such consent to agree) that, upon the occurrence and during the continuance of an Event of Default, all payments
due or to become due under or in connection with such Assigned Agreement shall be made directly to the Collateral Account. 
  
 (b) All moneys received or collected pursuant to subsection (a) above shall be (i) released to the applicable Grantor so long as no Event
of Default shall have occurred and be continuing or (ii) if any Event of Default shall have occurred and be continuing, applied as provided in Section 21(b). 
  

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 SECTION 17. Transfers and Other Liens; Additional Shares. 
  
 (a) Each Grantor agrees that it shall not (i) sell, assign
or otherwise dispose of, or grant any option with respect to, any of the Collateral, other than sales, assignments and other dispositions of Collateral, non-exclusive licenses granted in the ordinary course of business and options relating to
Collateral, permitted under the terms of the Second Amended Credit Agreement, or (ii) create or suffer to exist any Lien upon or with respect to any of the Collateral of such Grantor except for the pledge, assignment and security interest created
under this Agreement and Liens permitted under the Second Amended Credit Agreement or the Second Lien Credit Agreement. 
  
 (b) Each Grantor agrees that it shall (i) cause each issuer of the Pledged Shares pledged by such Grantor not to issue any stock or other
securities in addition to or in substitution for the Pledged Shares issued by such issuer, except to such Grantor, and (ii) pledge hereunder, immediately upon its acquisition (directly or indirectly) thereof, any and all additional shares of stock
or other securities. 
  
 SECTION 18. Collateral Agent Appointed
Attorney-in-Fact. Each Grantor hereby irrevocably appoints the Collateral Agent such Grantor’s attorney-in-fact, with full authority in the place and stead of such Grantor and in the name of such Grantor or otherwise, from time to time,
upon the occurrence and during the continuance of an Event of Default, in the Collateral Agent’s discretion, to take any action and to execute any instrument that the Collateral Agent may deem necessary or advisable to accomplish the purposes
of this Agreement, including, without limitation: 
  
 (a) to obtain and adjust insurance required to be paid to the Collateral Agent pursuant to Section 11, 
  
 (b) to ask for, demand, collect, sue for, recover, compromise, receive and give acquittance and receipts for moneys due and to become due
under or in respect of any of the Collateral, 
  
 (c) to receive, indorse and collect any drafts or other instruments, documents and chattel paper, in connection with clause (a) or (b) above, and 
  
 (d) to file any claims or take any action or institute any proceedings that the Collateral Agent may deem necessary or desirable for the
collection of any of the Collateral or otherwise to enforce compliance with the terms and conditions of any Assigned Agreement or the rights of the Collateral Agent with respect to any of the Collateral. 
  
 SECTION 19. Collateral Agent May Perform. If any Grantor fails to
perform any agreement contained herein, the Collateral Agent may, as the Collateral Agent deems necessary to protect the security interest granted hereunder in the Collateral or to protect the value thereof, but without any obligation to do so and
without notice, itself perform, or cause performance of, such agreement, and the expenses of the Collateral Agent incurred in connection therewith shall be payable by such Grantor under Section 22(b). 
  

 23 

 SECTION 20. The Collateral Agent’s Duties. 
  
 (a) The powers conferred on the Collateral Agent hereunder
are solely to protect the Secured Parties’ interest in the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually
received by it hereunder, the Collateral Agent shall have no duty as to any Collateral, as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relative to any Collateral, whether or
not any Secured Party has or is deemed to have knowledge of such matters, or as to the taking of any necessary steps to preserve rights against any parties or any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to
have exercised reasonable care in the custody and preservation of any Collateral in its possession if such Collateral is accorded treatment substantially equal to that which it accords its own property. 
  
 (b) Anything contained herein to the contrary
notwithstanding, the Collateral Agent may from time to time, when the Collateral Agent deems it to be necessary, appoint one or more subagents (each a “Subagent”) for the Collateral Agent hereunder with respect to all or any
part of the Collateral. In the event that the Collateral Agent so appoints any Subagent with respect to any Collateral, (i) the assignment and pledge of such Collateral and the security interest granted in such Collateral by each Grantor hereunder
shall be deemed for purposes of this Agreement to have been made to such Subagent, in addition to the Collateral Agent, for the ratable benefit of the Secured Parties, as security for the Secured Obligations of such Grantor, (ii) such Subagent shall
automatically be vested, in addition to the Collateral Agent, with all rights, powers, privileges, interests and remedies of the Collateral Agent hereunder with respect to such Collateral, and (iii) the term “Collateral
Agent,” when used herein in relation to any rights, powers, privileges, interests and remedies of the Collateral Agent with respect to such Collateral, shall include such Subagent; provided, however, that no such Subagent shall
be authorized to take any action with respect to any such Collateral unless and except to the extent expressly authorized in writing by the Collateral Agent. 
  
 SECTION 21. Remedies. If any Event of Default shall have occurred and be continuing: 
  
 (a) The Collateral Agent may exercise in respect of the Collateral, in addition to other rights and remedies
provided for herein or otherwise available to it, all the rights and remedies of a secured party upon default under the N.Y. Uniform Commercial Code (whether or not the N.Y. Uniform Commercial Code applies to the affected Collateral) and also may:
(i) require each Grantor to, and each Grantor hereby agrees that it shall at its expense and upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as directed by the Collateral Agent and make it available to the
Collateral Agent at a place and time to be designated by the Collateral Agent that is reasonably convenient to both parties; (ii) without notice except as specified below, sell the Collateral or any part thereof in one or more parcels, at public or
private sale, at any of the Collateral Agent’s offices or elsewhere, for cash, on credit or for future delivery, and 
  

 24 

 upon such other terms as the Collateral Agent may deem commercially reasonable; (iii) occupy any premises
owned or leased by any of the Grantors where the Collateral or any part thereof is assembled or located for a reasonable period in order to effectuate its rights and remedies hereunder or under law, without obligation to such Grantor in respect of
such occupation; and (iv) exercise any and all rights and remedies of any of the Grantors under or in connection with the Assigned Agreements or the Receivables or otherwise in respect of the Collateral, including, without limitation, any and all
rights of such Grantor to demand or otherwise require payment of any amount under, or performance of, any provision of the Assigned Agreements, the Receivables. Each Grantor agrees that, to the extent notice of sale shall be required by law, at
least ten days’ notice to such Grantor of the time and place of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. The Collateral Agent shall not be obligated to make any sale of
Collateral regardless of notice of sale having been given. The Collateral Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned. 
  
 (b) Any cash held by or on behalf of the Collateral Agent and all cash proceeds received by or on behalf of the Collateral Agent in respect of any sale of, collection from, or other realization upon all or any part of the Collateral may, in
the discretion of the Collateral Agent, be held by the Collateral Agent as collateral for, and/or then or at any time thereafter applied (after payment of any amounts payable to the Collateral Agent pursuant to Section 22), in whole or in part, by
the Collateral Agent for the ratable benefit of the Secured Parties against, all or any part of the Secured Obligations, in the following manner: 
  
 (i) first, to the Agents for any amounts owing to the Agents pursuant to Section 9.04 of the Second Amended Credit Agreement or
otherwise under the Loan Documents, ratably in accordance with such respective amounts then owing to the Agents; and 
  
 (ii) second, to the Lender Parties and the Hedge Banks, respectively, for any amount then owing to them, in their capacities as
such, under the Loan Documents ratably in accordance with such respective amounts then owing to the Lender Parties and the Hedge Banks, provided that, for purposes of this Section 21, the amount owing to any such Hedge Bank pursuant to any
Secured Hedge Agreement to which it is a party (other than any amount theretofore accrued and unpaid) shall be deemed to be equal to the Agreement Value therefor. 
  
 Any surplus of such cash or cash proceeds held by or on the behalf of the Collateral Agent and remaining after payment in
full of all the Secured Obligations shall be applied as provided in the Intercreditor and Subordination Agreement. 
  
 (c) All payments received by any Grantor under or in connection with any Assigned Agreement or otherwise in respect of the Collateral
shall be (i) received in trust for the benefit of the Collateral Agent, (ii) segregated from other funds of such Grantor and (iii) forthwith paid over to the Collateral Agent in the same form as so received (with any necessary indorsement).

  

 25 

 (d) The Collateral Agent may, without notice to any Grantor except as required by law and
at any time or from time to time, charge, set-off and otherwise apply all or any part of the Secured Obligations against any funds held in the Collateral Account or in any deposit account related thereto. 
  
 (e) In the event of any sale or other disposition of any of
the Intellectual Property Collateral of any Grantor, the goodwill of the business connected with and symbolized by any Trademarks subject to such sale or other disposition shall be included therein, and such Grantor shall supply to the Collateral
Agent or its designee such Grantor’s know-how and expertise, and documents and things relating to any Intellectual Property Collateral subject to such sale or other disposition, and such Grantor’s customer lists and other records and
documents relating to such Intellectual Property Collateral and to the manufacture, distribution, advertising and sale of products and services of such Grantor. 
  
 (f) If the Collateral Agent shall determine to exercise its right to sell all or any of the Security
Collateral of any Grantor pursuant to this Section 21, each Grantor agrees that, upon request of the Collateral Agent, such Grantor shall, at its own expense: 
  

(i) execute and deliver, and cause each issuer of such Security Collateral contemplated to be sold and the directors and officers
thereof to execute and deliver, all such instruments and documents, and do or cause to be done all such other acts and things, as may be necessary or, in the opinion of the Collateral Agent, advisable to register such Security Collateral under the
provisions of the Securities Act of 1933 (as amended from time to time, the “Securities Act”), to cause the registration statement relating thereto to become effective and to remain effective for such period as prospectuses
are required by law to be furnished and to make all amendments and supplements thereto and to the related prospectus that, in the opinion of the Collateral Agent, are necessary or advisable, all in conformity with the requirements of the Securities
Act and the rules and regulations of the Securities and Exchange Commission applicable thereto; 
  
 (ii) use its best efforts to qualify the Security Collateral under the state securities or “Blue Sky” laws and to obtain all
necessary governmental approvals for the sale of such Security Collateral, as requested by the Collateral Agent; 
  
 (iii) cause each such issuer of such Security Collateral to make available to its security holders, as soon as practicable, an earnings
statement that shall satisfy the provisions of Section 11(a) of the Securities Act; 
  
 (iv) provide the Collateral Agent with such other information and projections as may be necessary or, in the opinion of the Collateral
Agent, advisable to enable the Collateral Agent to effect the sale of such Security Collateral; and 
  

 26 

 (v) do or cause to be done all such other acts and things as may be necessary to make
such sale of such Security Collateral or any part thereof valid and binding and in compliance with applicable law. 
  
 (g) The Collateral Agent is authorized, in connection with any sale of the Security Collateral pursuant to this Section 21, to deliver or
otherwise disclose to any prospective purchaser of the Security Collateral: (i) any registration statement or prospectus, and all supplements and amendments thereto, prepared pursuant to subsection (f)(i) above; (ii) any information and projections
provided to it pursuant to subsection (f)(iv) above; and (iii) any other information in its possession relating to such Security Collateral. 
  
 (h) Each Grantor acknowledges the impossibility of ascertaining the amount of damages that would be suffered by the Secured Parties by
reason of the failure by such Grantor to perform any of the covenants contained in subsection (f) above and, consequently, agrees that, if such Grantor shall fail to perform any of such covenants, it shall pay, as liquidated damages and not as a
penalty, an amount equal to the value of the Security Collateral on the date the Collateral Agent shall demand compliance with subsection (f) above. 
  
 SECTION 22. Indemnity and Expenses. 
  
 (a) Each Grantor agrees to indemnify, defend, save and hold harmless each Secured Party and each of their Affiliates and their respective
officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against, and shall pay on demand, any and all claims, damages, losses, liabilities and expenses (including, without limitation,
reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or resulting from any claims by third parties involving this Agreement
(including, without limitation, enforcement of this Agreement), except to the extent such claim, damage, loss, liability or expense resulted from such Indemnified Party’s gross negligence or willful misconduct. 
  
 (b) Each Grantor shall upon demand pay to the Collateral
Agent the amount of any and all reasonable expenses, including, without limitation, the reasonable fees and expenses of its counsel and of any experts and agents, that the Collateral Agent may incur in connection with (i) the administration of this
Agreement, (ii) the custody, preservation, use or operation of, or the sale of, collection from or other realization upon, any of the Collateral of such Grantor, (iii) the exercise or enforcement of any of the rights of the Collateral Agent or the
other Secured Parties hereunder or (iv) the failure by such Grantor to perform or observe any of the provisions hereof. 
  
 SECTION 23. Amendments; Waivers; Additional Grantors; Etc. 
  
 (a) No amendment or waiver of any provision of this Agreement, and no consent to any departure by any
Grantor herefrom, shall in any event be effective unless the same shall be in writing and signed by the Collateral Agent, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which such

  

 27 

 waiver or consent is given. No failure on the part of the Collateral Agent or any other Secured Party to
exercise, and no delay in exercising any right hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. 
  
 (b) Upon the execution and delivery by any Person of a
security agreement supplement in substantially the form of Exhibit A hereto (each a “Security Agreement Supplement”), (i) such Person shall be referred to as an “Additional Grantor” and shall be and
become a Grantor hereunder and each reference in this Agreement and the other Loan Documents to “Grantor” shall also mean and be a reference to such Additional Grantor, and (ii) the supplemental Schedules I, II, III, IV and V
attached to each Security Agreement Supplement shall be incorporated into and become a part of and supplement Schedules I, II, III, IV and V, respectively, hereto, and the Collateral Agent may attach such supplemental schedules to such Schedules,
and each reference to such Schedules shall mean and be a reference to such Schedules as supplemented pursuant to each Security Agreement Supplement. 
  
 SECTION 24. Notices, Etc. All notices and other communications provided for hereunder shall be in writing (including telegraphic, telecopier or
telex communication) and mailed, telegraphed, telecopied, telexed or delivered to, in the case of the Borrower or the Collateral Agent, addressed to it at its address specified in the Second Amended Credit Agreement and, in the case of each Grantor
other than the Borrower, addressed to it at its address set forth opposite such Grantor’s name on the signature pages hereto or on the signature page to the Security Agreement Supplement pursuant to which it became a party hereto; or, as to any
party, at such other address as shall be designated by such party in a written notice to the other parties. All such notices and other communications shall, when mailed, telegraphed, telecopied or telexed, be effective when deposited in the mail,
delivered to the telegraph company, telecopied or confirmed by telex answerback, respectively, addressed as aforesaid; except that notices and other communications to the Collateral Agent shall not be effective until received by the Collateral
Agent. Delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of this Agreement or of any Security Agreement Supplement or Schedule hereto shall be effective as delivery of an original executed counterpart
thereof. 
  
 SECTION 25. Continuing Security Interest;
Assignments under the Second Amended Credit Agreement. This Agreement shall create a continuing security interest in the Collateral and shall (a) remain in full force and effect until the latest of (i) the payment in full in cash of the Secured
Obligations, (ii) the Termination Date and (iii) the termination or expiration of all Secured Hedge Agreements, (b) be binding upon each Grantor, its successors and assigns and (c) inure, together with the rights and remedies of the Collateral Agent
hereunder, to the benefit of the Secured Parties and their respective successors, transferees and assigns. Without limiting the generality of the foregoing clause (c), any Lender Party may assign or otherwise transfer all or any portion of its
rights and obligations under the Second Amended Credit Agreement (including, without limitation, all or any portion of its Commitment, the Advances owing to it and the Note or Notes, if any, held by it) to any Eligible Assignee, and such Eligible
Assignee shall thereupon become vested with all the benefits in respect thereof granted to such Lender Party herein or otherwise, in each case as provided in Section 9.07 of the Second Amended Credit Agreement. 
  

 28 

 SECTION 26. Release; Termination. 
  
 (a) Upon any sale, lease, transfer or other disposition of any item of Collateral of any Grantor in
accordance with the terms of the Loan Documents (other than sales of Inventory in the ordinary course of business), the Collateral Agent shall, at such Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall
reasonably request to evidence the release of such item of Collateral from the assignment and security interest granted hereby; provided, however, that (i) at the time of such request and such release no Event of Default shall have occurred
and be continuing, (ii) such Grantor shall have delivered to the Collateral Agent, at least 10 Business Days prior to the date of the proposed release, a written request for release describing the item of Collateral and the terms of the sale, lease,
transfer or other disposition in reasonable detail, including, without limitation, the price thereof and any expenses in connection therewith, together with a form of release for execution by the Collateral Agent and a certificate of such Grantor to
the effect that the transaction is in compliance with the Loan Documents and as to such other matters as the Collateral Agent may request and (iii) the proceeds of any such sale, lease, transferor other disposition required to be applied, or any
payment to be made in connection therewith, in accordance with Section 2.05 of the Second Amended Credit Agreement shall, to the extent so required, be paid or made to the Collateral Agent when and as required under Section 2.05 of the Second
Amended Credit Agreement. 
  
 (b) Upon the latest
of (i) the payment in full in cash of the Secured Obligations, (ii) the Termination Date and (iii) the termination or expiration of all Secured Hedge Agreements, the pledge, assignment and security interest granted hereby shall terminate and all
rights to the Collateral shall revert to the applicable Grantor subject to the Intercreditor and Subordination Agreement, the Second Lien Credit Agreement and the Loan Documents, as defined in the Second Lien Credit Agreement. Upon any such
termination, the Collateral Agent shall, at the applicable Grantor’s expense, execute and deliver to such Grantor such documents as such Grantor shall reasonably request to evidence such termination. 
  

 29 

 SECTION 27. Security Interest Absolute. The obligations of each Grantor under this Agreement are
independent of the Secured Obligations or any other Obligations of any other Loan Party under or in respect of the Loan Documents, and a separate action or actions may be brought and prosecuted against each Grantor to enforce this Agreement,
irrespective of whether any action is brought against such Grantor or any other Loan Party or whether such Grantor or any other Loan Party is joined in any such action or actions. All rights of the Collateral Agent and the other Secured Parties and
the pledge, assignment and security interest hereunder, and all obligations of each Grantor hereunder, shall be irrevocable, absolute and unconditional irrespective of, and each Grantor hereby irrevocably waives (to the maximum extent permitted by
applicable law) any defenses it may now have or may hereafter acquire in any way relating to, any or all of the following: 
  
 (a) any lack of validity or enforceability of any Loan Document or any other agreement or instrument relating thereto; 
  
 (b) any change in the time, manner or place of payment of,
or in any other term of, all or any of the Secured Obligations or any other Obligations of any other Loan Party under or in respect of the Loan Documents or any other amendment or waiver of or any consent to any departure from any Loan Document,
including, without limitation, any increase in the Secured Obligations resulting from the extension of additional credit to any Loan Party or any of its Subsidiaries or otherwise; 
  
 (c) any taking, exchange, release or non-perfection of any Collateral or any other collateral, or any
taking, release or amendment or waiver of or consent to departure from any guaranty, for all or any of the Secured Obligations; 
  
 (d) any manner of application of any Collateral or any other collateral, or proceeds thereof, to all or any of the Secured Obligations, or
any manner of sale or other disposition of any Collateral or any other collateral for all or any of the Secured Obligations or any other Obligations of any other Loan Party under or in respect of the Loan Documents or any other assets of any Loan
Party or any of its Subsidiaries; 
  
 (e) any
change, restructuring or termination of the corporate structure or existence of any Loan Party or any of its Subsidiaries; 
  
 (f) any failure of any Secured Party to disclose to any Loan Party any information relating to the business, condition (financial or
otherwise), operations, performance, assets, nature of assets, liabilities or prospects of any other Loan Party now or hereafter known to such Secured Party (each Grantor waiving any duty on the part of the Secured Parties to disclose such
information); 
  
 (g) the failure of any other
Person to execute this Agreement or any other Collateral Document, guaranty or agreement or the release or reduction of liability of any Grantor or other grantor or surety with respect to the Secured Obligations; or 
  
 (h) any other circumstance (including, without limitation,
any statute of limitations) or any existence of or reliance on any representation by any Secured Party that might otherwise constitute a defense available to, or a discharge of, such Grantor or any other Grantor or a third party grantor of a
security interest. 
  

 30 

 This Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of
the Secured Obligations is rescinded or must otherwise be returned by any Secured Party or by any other Person upon the insolvency, bankruptcy or reorganization of any Loan Party or otherwise, all as though such payment had not been made.

  
 SECTION 28. Execution in Counterparts. This Agreement
may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to
this Agreement by telecopier shall be effective as delivery of an original executed counterpart of this Agreement. 
  
 SECTION 29. The Mortgage. In the event that any of the Collateral hereunder is also subject to a valid and enforceable Lien under the terms of any
Mortgage and the terms of such Mortgage are inconsistent with the terms of this Agreement, then with respect to such Collateral, the terms of such Mortgage shall be controlling, in the case of fixtures and real estate leases, letting and licenses
of, and contracts and agreements relating to the lease of, real property, and the terms of this Agreement shall be controlling in the case of all other Collateral. 
  
 SECTION 30. Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New York. 
  
 SECTION 31. Intercreditor and
Subordination Agreement. Notwithstanding anything contained herein to the contrary, this Agreement and the rights and obligations of the parties hereunder are subject to the terms and conditions of the Intercreditor and Subordination Agreement.

  

 31 

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

							
	 Address for Notices:
	  	INTERSTATE FIBERNET, INC.
	1791 O.G. Skinner Drive	  	 	  	 	  	 
	West Point, GA 31833	  	 	  	 	  	 
	Attention: Douglas Shumate	  	By:	  	     /s/ Douglas A. Shumate

	 	  	 	  	    Name:	  	Douglas A. Shumate
	 	  	 	  	    Title:	  	 Senior Vice President/Chief
 Financial
Officer

		
	Address for Notices:	  	ITC ^DELTACOM, INC.
	1791 O.G. Skinner Drive	  	 	  	 	  	 
	West Point, GA 31833	  	 	  	 	  	 
	Attention: Douglas Shumate	  	By:	  	     /s/ Douglas A. Shumate

	 	  	 	  	    Name:	  	Douglas A. Shumate
	 	  	 	  	    Title:	  	 Senior Vice President/Chief
 Financial
Officer

		
	Address for Notices:	  	ITC ^DELTACOM COMMUNICATIONS, INC.
	1791 O.G. Skinner Drive	  	 	  	 	  	 
	West Point, GA 31833	  	 	  	 	  	 
	Attention: Douglas Shumate	  	By:	  	     /s/ Douglas A. Shumate

	 	  	 	  	    Name:	  	Douglas A. Shumate
	 	  	 	  	    Title:	  	 Senior Vice President/Chief
 Financial
Officer

		
	Address for Notices:	  	DELTACOM INFORMATION SYSTEMS, INC.
	1791 O.G. Skinner Drive	  	 	  	 	  	 
	West Point, GA 31833	  	 	  	 	  	 
	Attention: Douglas Shumate	  	By:	  	     /s/ Douglas A. Shumate

	 	  	 	  	    Name:	  	Douglas A. Shumate
	 	  	 	  	    Title:	  	 Senior Vice President/Chief
 Financial
Officer

							
	 Address for Notices:
	  	 BUSINESS TELECOM, INC.

	 1791 O.G. Skinner Drive
	  	 	  	 	  	 
	 West Point, GA 31833
	  	 	  	 	  	 
	 Attention: Douglas Shumate
	  	 By:
	  	     /s/ Douglas A. Shumate

	 	  	 	  	     Name:
	  	 Douglas A. Shumate

	 	  	 	  	     Title:
	  	 Senior Vice President/Chief

	 	  	 	  	 	  	 Financial Officer

		
	 Address for Notices:
	  	 BTI TELECOM CORP.

	 1791 O.G. Skinner Drive
	  	 	  	 	  	 
	 West Point, GA 31833
	  	 	  	 	  	 
	 Attention: Douglas Shumate
	  	 By:
	  	     /s/ Douglas A. Shumate

	 	  	 	  	     Name:
	  	 Douglas A. Shumate

	 	  	 	  	     Title:
	  	 Senior Vice President/Chief
 Financial Officer

		
	 Address for Notices:
	  	 BUSINESS TELECOM OF VIRGINIA, INC.

	 1791 O.G. Skinner Drive
	  	 	  	 	  	 
	 West Point, GA 31833
	  	 	  	 	  	 
	 Attention: Douglas Shumate
	  	 By:
	  	     /s/ Douglas A. Shumate

	 	  	 	  	     Name:
	  	 Douglas A. Shumate

	 	  	 	  	     Title:
	  	 Senior Vice President/Chief
 Financial Officer

  
  

 2

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