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Exhibit 10(i)(A)(1)(i)

    
    

 
 

AMENDMENT, WAIVER AND CONSENT TO
  THE CREDIT AGREEMENT    
    

        Dated
as of June 13, 2003 

        AMENDMENT, WAIVER AND CONSENT TO THE CREDIT AGREEMENT (this "Amendment") among CINCINNATI
BELL INC. (f/k/a Broadwing Inc.), an Ohio corporation ("Cincinnati Bell"), and BROADWING COMMUNICATIONS SERVICES INC. (f/k/a IXC
Communications Services, Inc.), a Delaware corporation ("BCSI", and together with Cincinnati Bell, each a
"Borrower" and collectively the "Borrowers"), the banks, financial institutions and other institutional
lenders parties to the Credit Agreement (as defined below) (the "Lenders"), BANK OF AMERICA, N.A., as syndication agent, CITICORP USA, INC., as
administrative agent (the "Administrative Agent"), and the other agents party to the Credit Agreement. 

 PRELIMINARY STATEMENTS:  

        (1) Each Borrower, the Lenders and the Administrative Agent have entered into a Second Amendment and Restatement of the Credit Agreement dated as of
March 26, 2003 (such Amendment and Restatement of the Credit Agreement, as so amended, supplemented or otherwise modified through the date hereof, the "Credit
Agreement"). Capitalized terms not otherwise defined in this Amendment have the same meanings as specified in the Credit Agreement or the BCSI Sale Agreement. 

        (2)
BCSI, the other Sellers party to the BCSI Sale Agreement and the Buyers party to the BCSI Sale Agreement have entered into an Amendment No. 1, dated as of June 6, 2003,
to the BCSI Sale Agreement (the "Sale Agreement Amendment"), a summary of the principal terms of which is attached hereto as Annex A. 

        (3)The
Borrowers have requested that the Lenders (i) consent to the Sale Agreement Amendment, the performance of the BCSI Sale Agreement as amended thereby (the
"Amended BCSI Sale Agreement") and the performance of the Sellers' Parent Guaranty in respect of the amended BCSI Sale Agreement and (ii) waive
or amend certain provisions of the Credit Agreement, as set forth below. 

        (4)
The Lenders are willing to grant such consent and effect such waivers and amendments on the terms and subject to the conditions set forth in this Amendment. 

        SECTION
1.    Amendment, Waiver and Consent to the Credit Agreement.    Effective as of the Amendment Effective Date
(as defined below) and subject to the satisfaction of the conditions precedent set forth in Section 2, the Lenders hereby: 

        (i)    consent
to the execution and delivery of the Sale Agreement Amendment, the performance of the Amended BCSI Sale Agreement and the performance by Cincinnati Bell of the
Sellers' Parent Guaranty in respect of the Amended BCSI Sale Agreement and waive any Default or Event of Default that would otherwise result therefrom, subject, in the case of the performance of the
Sellers' Parent Guaranty, to compliance with the procedures contemplated by clause (ii) below; 

        (ii)   agree
that the guarantee by Cincinnati Bell pursuant to the Sellers' Parent Guaranty of the Sale Agreement Amendment Liabilities (as defined below) will not be deemed
an Investment in the BCI Group until such time as cash is expended to pay such liabilities; provided, however, that Cincinnati Bell shall, as contemplated by Section 5.02(e)(ix)(E) of the
Credit Agreement, establish a reserve in an amount equal to the reasonably anticipated maximum payment obligations in respect of the Sale Agreement Amendment Liabilities, utilize Net Cash Proceeds
from the sale under the Amended BCSI Sale Agreement to prepay Revolving Credit Borrowings in the amount of such reserve and thereafter comply with Section 5.02(e)(ix)(E) with respect to the
Reserved 

 

Commitments
resulting from such prepayment, Revolving Credit Borrowings utilizing such Reserved Commitments and the applications of the proceeds thereof; 

        (iii)  waive
compliance with Section 5.01(j) of the Credit Agreement with respect to the real property leasehold interests listed in Annex B attached hereto; and 

        (iv)  agree
that the Broadwing Communications Real Estate Services LLC Company Agreement may be amended to delete all provisions requiring the existence or actions of the
Independent Manager (as defined therein) or otherwise related to the Independent Manager as of the date of the sale of the Equity Interests of the Real Estate SPV in connection with the consummation
of the transactions contemplated by the Amended BCSI Sale Agreement. 

        The
Borrowers and the Lenders hereby agree that any reserve established pursuant to clause (ii) above and any repayment of Revolving Credit Borrowings contemplated thereby shall
be deemed to have been effected in accordance with, and shall result in Reserved Commitments subject to, Section 5.02(e)(ix)(E) of the Credit Agreement. 

        "Sale Agreement Amendment Liabilities" shall mean the potential payment by Sellers, or if necessary by Cincinnati Bell pursuant to the
Sellers' Parent Guaranty, of (i) cash for every dollar that the Cranberry Capital Expenditures for the first two quarters of 2003 exceeds $10,000,000 over the Actual Capital Expenditures for
such time period and (ii) up to $10,000,000 in cash in the event that the business transferred fails to meet certain Annual Cash EBITDA requirements for the first 12 months following the
First Stage Closing Date. 

        SECTION
2.    Conditions of Effectiveness.    This Amendment shall become effective as of the date first above written
when the Administrative Agent shall have received counterparts of (x) this Amendment executed by the undersigned, the Required Lenders or, as to any of the Lenders, advice satisfactory to the
Administrative Agent that such Lender has executed this Amendment, and (y) the Consent attached hereto executed by each of the Subsidiary Guarantors except that Section 1 shall not
become effective until the date (the "Amendment Effective Date") when, and only when, each of the following conditions precedent shall have been
satisfied: 

        (a)
The representations and warranties set forth in each of the Loan Documents shall be correct in all material respects on and as of the Amendment Effective Date, after giving effect to
this Amendment, as though made on and as of such date (except for any such representation and warranty that, by its terms, refers to a specific date other than the Amendment Effective Date, in which
case as of such specific date). 

        (b)
After giving effect to this Amendment, no event shall have occurred and be continuing that constitutes a Default or Event of Default. 

The
effectiveness of this Amendment is further conditioned upon the accuracy in all material respects of all of the factual matters described herein. This Amendment is subject to the provisions of
Section 9.01 of the Credit Agreement. 

        SECTION
3.    Effect on the Loan Documents.    The Credit Agreement and the other Loan Documents are and shall
continue to be in full force and effect and are hereby in all respects ratified and confirmed. Without limiting the generality of the foregoing, the Collateral Documents and all of the Collateral
described therein do and shall continue to secure the payment of all Obligations of the Loan Parties under the Loan Documents. 

        (a)
The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the
Administrative Agent under any of the Loan Documents, nor constitute a waiver or amendment of any provision of any of the Loan Documents. 

2

 

        SECTION
4.    Costs, Expenses.    Each of the Borrowers hereby agrees to pay on demand all reasonable costs and
expenses of the Administrative Agent in connection with the preparation, execution, delivery and administration, modification and amendment of this Amendment (including, without limitation, the
reasonable fees and expenses of counsel for the Administrative Agent) in accordance with the terms of Section 9.04 of the Credit Agreement. 

        SECTION
5.    Execution in Counterparts.    This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which will be deemed to be an original and all of which taken together shall constitute but one and the same agreement. Delivery of an
executed counterpart of a signature page to this Amendment by telecopier shall be effective as delivery o f a manually executed counterpart of this Amendment. 

        SECTION
6.    Governing Law.    This Amendment shall be governed by, and construed in accordance with, the laws of the
State of New York. 

        [The remainder of this page intentionally left blank.]

3

 

        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. 

	 	 	CINCINNATI BELL INC. (f/k/a BROADWING INC.)
	

 	
 	

By	

/s/  MARK PETERSON      

	 	 	Title:	Vice President and Treasurer
	

 	
 	

BROADWING COMMUNICATIONS SERVICES INC.

(f/k/a IXC COMMUNICATIONS SERVICES, INC.)
	

 	
 	

By	

/s/  MARK PETERSON      

	 	 	Title:	Vice President and Treasurer

Agreed
as of the date first above written: 

	

CITICORP USA, INC.,

as Administrative Agent and as Lender	

 
	

By	

/s/  JOHN J. JUDGE      
	

 
	Title:	Vice President	 
	

BANK OF AMERICA, N.A.,

as Syndication Agent and as Lender	

 
	

By	

/s/  MICHAEL R. HEREDIA      
	

 
	Title:	Managing Director	 

	 	 	Lenders:	 
	 	 	 	

	

 	
 	

Institution

	

 	
 	

By	

	 	 	Title:	 

4

 
 
 

  

CONSENT

    
    

        Each of the undersigned, as (i) Grantor under the Second Amendment and Restatement of the Non-Shared Collateral Security Agreement dated
November 9, 1999 and amended and restated July 17, 2002 and further amended and restated March 26, 2003 (as amended and restated, the  "Non-Shared Collateral Security Agreement") in favor
of the Citicorp USA, Inc., as Administrative Agent (the  "Administrative Agent"), for its benefit and the benefit of the Lenders parties to the Credit Agreement referred to in the foregoing
Amendment, and/or
(ii) Grantor under the Second Amendment and Restatement of the Shared Collateral Security Agreement dated November 9, 1999 and amended and restated July 17, 2002 and further
amended and restated March 26, 2003 (as amended and restated, the "Shared Collateral Security Agreement", and together with the
Non-Shared Collateral Security Agreement, the "Security Agreements") in favor of Wilmington Trust Company and John M. Beeson, as Collateral
Trustees, for their benefit and the benefit of the Secured Holders referred to therein, and (iii) Guarantor under the Amendment and Restatement of the BCSI Subsidiary Guaranty dated as of
November 9, 1999 and amended and restated March 26, 2003 (the "BCSI Subsidiary Guaranty"), in favor of the Secured Parties referred to
therein, and/or (iv) Guarantor under the BRW Subsidiary Guaranty dated as of November 9, 1999 and amended and restated March 26, 2003 (the "BRW Subsidiary
Guaranty", and together with the BCSI Subsidiary Guaranty, the "Guarantees") in favor of the Secured Parties referred to
therein, hereby consents to the foregoing Amendment and hereby confirms and agrees that (a) notwithstanding the effectiveness of the foregoing Amendment, each Security Agreement and Guarantee
to which it is a party is, and shall continue to be, in full force and effect and is hereby ratified and confirmed in all respects, and (b) the Security Agreements to which 

5

 

such
Grantor is a party and all of the Collateral described therein do, and shall continue to, secure the payment of all of the Secured Obligations (in each case, as defined therein.) 

	

 	
 	

CINCINNATI BELL INC. (f/k/a BROADWING INC.)
	 	 	By	/s/  MARK PETERSON      

	 	 	Title:	Vice President and Treasurer
	

 	
 	

BROADWING COMMUNICATIONS SERVICES INC.

(f/k/a IXC COMMUNICATIONS SERVICES, INC.)
	

 	
 	

By	

/s/  MARK PETERSON      

	 	 	Title:	Vice President and Treasurer
	

 	
 	

Agreed as of the date first written:
	

 	
 	

CITICORP USA, INC.

    as Administrative Agent and as Lender
	

 	
 	

By	

/s/  JOHN T. JUDGE      

	 	 	Title:	Vice President
	

 	
 	

BANK OF AMERICA, N.A.,

    as Syndication Agent and as Lender
	

 	
 	

By	

/s/  MICHAEL R. HEREDIA      

	 	 	Title:	Managing Director

6

 

	 	 	Lenders:	 
	

 	
 	

	 	 	Name of Institution

	

 	
 	
By	

	 	 	Title:	 

7

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Exhibit 10(i)(A)(1)(i)

AMENDMENT, WAIVER AND CONSENT TO THE CREDIT AGREEMENT

CONSENTQuickLinks
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Exhibit 10(i)(A)(3)(iii)

    
    

 
 

LETTER AGREEMENT RELATING TO
  AGREEMENT FOR THE PURCHASE AND SALE OF ASSETS    
    

        This Letter Agreement (this "Agreement") relating to the Agreement for the Purchase and Sale of Assets dated as of
February 22, 2003, by and between and by between BCSI, Inc. (f/k/a Broadwing Communications Services Inc.), a Delaware corporation, Broadwing Communications Services of
Virginia, Inc., a Virginia corporation, BRWSVCS LLC (f/k/a Broadwing Services LLC), a Delaware limited liability company, IXC Business Services LLC, a Delaware limited liability company, BRWL,
LLC (f/k/a Broadwing Logistics LLC), a Delaware limited liability company, IXC Communications Services, Inc., a Delaware corporation, BTI Inc. (f/k/a Broadwing
Telecommunications Inc.), a Delaware corporation, IXC Internet Services, Inc., a Delaware corporation, and MSM Associates, Limited Partnership, a Delaware limited partnership
(individually, a "Seller" and collectively, "Sellers"), on the one side, and C III Communications, LLC,
a Delaware limited liability company, and C III Communications Operations, LLC, a Delaware limited liability company (individually, a "Buyer" and
collectively, "Buyers"), on the other side, as amended by Amendment No. 1 to the Agreement for the Purchase and Sale of Assets, dated as of
June 6, 2003, by and between the Buyers and the Sellers, collectively, the "Asset Purchase Agreement"), is made by and among each of the parties
referred to above for the purposes of clarifying certain provisions contained in the Asset Purchase Agreement. 

        WHEREAS,
Sellers and Buyers desire to modify certain provisions of the Asset Purchase Agreement to reflect their agreement with respect to certain modifications to the Asset Purchase
Agreement as set forth herein; 

        NOW,
THEREFORE, in consideration of the mutual covenants, agreements and warranties contained herein and in the Asset Purchase Agreement, the parties hereto agree as follows: 

        SECTION
1.    Definitions; References.    Each capitalized term used herein which is not defined herein shall have the
meaning assigned to such term in the Asset Purchase Agreement. Each reference to "hereof", "hereunder", "herein" and "hereby" and each other similar reference and each reference to "this Agreement"
and each other similar reference contained in the Asset Purchase Agreement shall from and after the date hereof refer to the Asset Purchase Agreement as amended hereby. 

        SECTION
2.    Modification of Asset Purchase Agreement.    The Asset Purchase Agreement shall be clarified and
modified as follows: 

        (a)
The definition of the term "Purchase Price" in Section 1.1 is hereby clarified and modified by the replacement of the reference
to "Section 2.4(d)" with "Section 2.4(j)". 

        (b)
Section 2.4 (b) is hereby modified by the agreement of Buyers and Sellers that the percentage in clause (i)(A)(2) is seven and twenty-two hundredths
percent (7.22%) 

        (c)
Schedule 2.4(d)(ii) is hereby clarified and modified as set forth in Schedule to 2.4(d)(ii) which is attached hereto as Exhibit A. 

        (d)
Section 2.4(j) is hereby modified by the addition of the following at the end: 

The
term "Purchase Price" means the sum of (i) the Initial Purchase Price (or, once the Closing Working Capital is finally determined pursuant to
Section 2.4(g), the Adjusted CWC Purchase Price), and (ii) once and to the extent released under the Escrow Agreement (Second Stage Closing), the Escrow Amount (Second Stage Closing). 

        (e)
Sections 5.4 and 5.23, and any other applicable provisions of the Asset Purchase Agreement are hereby clarified and modified by the exclusion of Richard Schreib from
the definition of "Business Employee", and Buyers shall not be required to make an offer of employment to him. 

        (f)
In consideration of, and in connection with, the clarification and modification to Section 5.12 below: 

        (f)
Sellers' Parent has entered into Exchange and Voting Agreements listed on Schedule 3.9(f) (which is attached as Exhibit B hereto) with sufficient numbers of holders of
sufficient principal amount of the 9% Notes, and with the holders of a sufficient number of 

 

shares
of the 121/2% Preferred Stock, to effect the exchange offers contemplated thereby. Sellers' Parent has entered into the agreements listed on Schedule 3.9(f) to exchange
all of the outstanding Senior Notes, which exchange is scheduled to close on or about June 16, 2003. Neither Seller's Parent nor Sellers intend to terminate or materially amend any of such
Agreements or any of the exchange offers contemplated thereby, it being understood that an extension shall not be considered a material amendment. 

        (g)
Section 5.12 is hereby modified by the deletion of the phrase ", in either case on or prior to the First Stage Closing". Without limiting any other provisions which survive
the First Stage Closing, Sellers covenant and agree that the obligations of Sellers set forth in Section 5.12 shall survive the First Stage Closing. 

        (h)
Section 5.18 is hereby modified by the deletion of the phrase "At or prior to the Closing" and the addition, in lieu thereof, of "within five (5) Business Days after
the First Stage Closing,". 

        (i)
Section 6.1 is hereby clarified and modified to reflect the effective time of the Staged Closings by the addition of the following: 

The
First Stage Closing, the Second Stage Closing and the Third Stage Closing shall be effective as of 12:01 A.M. on the day following the First Stage Closing Date, the Second Stage closing
Date and the third Stage Closing Date, respectively. Buyers may elect to effect the Third Stage Closing at any time on or subsequent to the Second Stage Closing Date, by written notice to Sellers at
least two (2) Business Days before the Second Stage Closing Date contained in such notice. 

        (j)
Section 2.4(d)(iv) is hereby clarified and modified by the insertion of the phrase "80% of" in the first two sentences between the words "If" and "the" at the beginning
of such sentences, and (ii) the insertion of "which 80% is" in the first two sentences of such Section between the number "2003" and the word "as" in such sentences.

        (k)
Schedule 2.3 (Excluded Liabilities) is hereby amended by the addition of the items listed on Exhibit C attached hereto. 

        (l)
The schedules to the Asset Purchase Agreement set forth on Exhibit D hereto are hereby updated as set forth on Exhibit D 

        SECTION
3.    Representations and Warranties of the Sellers.    Each Seller, as of the date hereof, hereby makes the
representations and warranties in Section 3.2 of the Asset Purchase Agreement as if set forth herein with respect to this Agreement. For purposes of clarity, all references in such section to
"this Agreement" shall mean the Asset Purchase Agreement, as modified by this Agreement. 

        SECTION
4.    Representations and Warranties of the Buyers.    Each Buyer, as of the date hereof, hereby makes the
representations and warranties in Section 4.2 of the Asset Purchase Agreement as if set forth herein with respect to this Agreement. For purposes of clarity, all references in such section to
"this Agreement" shall mean the Asset Purchase Agreement, as modified by this Agreement. 

        SECTION
5.    Applicable Law.    This Agreement shall be construed in accordance with and governed by the internal
laws of the State of New York applicable to agreements made and to be performed entirely within such State without regard to conflicts of laws principles thereof. 

        SECTION
6.    Counterparts.    This Agreement may be executed simultaneously in two or more counterparts, each of
which will be deemed to be an original copy of this Agreement and all of which together will be deemed, respectively, to constitute one and the same agreement. 

        SECTION
7.    Effect of this Agreement.    This Agreement shall be effective to modify, and shall be deemed
incorporated by reference into (and to comprise an integral part of) the Asset Purchase Agreement. 

2

 

        IN
WITNESS WHEREOF, each party has caused this Agreement to be duly executed on its behalf by its duly authorized officers as of the date first written above. 

	 	 	BCSI INC.
	

 	
 	

BY:	

/S/  KEVIN W. MOONEY          
 Name: Kevin W. Mooney

Title: Chief Executive Officer	
 	

 
	

 	
 	
BROADWING COMMUNICATIONS SERVICES OF VIRGINIA INC.
	

 	
 	

By:	

/s/  KEVIN W. MOONEY          
 Name: Kevin W. Mooney

Title: Chief Executive Officer	
 	

 
	

 	
 	
BRWSVCS LLC
	

 	
 	

By:	

/s/  KEVIN W. MOONEY          
 Name: Kevin W. Mooney

Title: Chief Executive Officer	
 	

 
	

 	
 	
IXC BUSINESS SERVICES, LLC
	

 	
 	

By:	

/s/  THOMAS L. SCHILLING          
 Name: Thomas L. Schilling

Title: Manager	
 	

 
	

 	
 	
BTI INC.
	

 	
 	

By:	

/s/  KEVIN W. MOONEY          
 Name: Kevin W. Mooney

Title: Chief Executive Officer	
 	

 
	

 	
 	
IXC INTERNET SERVICES, INC.
	

 	
 	

By:	

/s/  KEVIN W. MOONEY          
 Name: Kevin W. Mooney

Title: Chief Executive Officer	
 	

 
	 	 	 	 	 	 

3

 

	

 	
 	
BRWL, LLC
	

 	
 	

By:	

/s/  KEVIN W. MOONEY          
 Name: Kevin W. Mooney

Title: Chief Executive Officer	
 	

 
	

 	
 	
MSM ASSOCIATES, LIMITED PARTNERSHIP
	

 	
 	

By:	
MUTUAL SIGNAL CORPORATION OF MICHIGAN, ITS GENERAL PARTNER    
	

 	
 	

By:	

/s/  KEVIN W. MOONEY          
 Name: Kevin W. Mooney

Title: Chief Executive Officer	
 	

 
	

 	
 	
C III COMMUNICATIONS, LLC 
	

 	
 	

By:	

    
 Name:

Title:	
 	

 
	

 	
 	
C III COMMUNICATIONS OPERATIONS, LLC
	

 	
 	

By:	

    
 Name:

Title:	
 	

 

4

 
 
 

EXHIBIT A    
    

Schedule 2.4(d)(ii)  

80% of Cranberry Capital Expenditure Budget for the First Two Quarters of 2003  

First Quarter 2003:    $8.08 million

Second Quarter 2003:    $7.76 million
 First Two Quarters 2003 Total:    $15.84 million

Provided, however, that the First Two Quarters 2003 Total shall be adjusted by pro-rating the Second Quarter 2003 amount to the day on which
the First Stage Closing Date shall occur. For example, since the First Stage Closing Date occurs on June 13, 2003 then the Second Quarter 2003 amount shall equal
$6,294,222[[$7,760,000 (x) [73/90]].

5

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Exhibit 10(i)(A)(3)(iii)

LETTER AGREEMENT RELATING TO AGREEMENT FOR THE PURCHASE AND SALE OF ASSETS

EXHIBIT A

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