Document:

EXHIBIT 4.2

 Exhibit 4.2 
  

ITC^DELTACOM, INC. 
  
 and 
  
 MELLON INVESTOR SERVICES LLC 
  
 as 
  
 WARRANT AGENT

  

  
 WARRANT AGREEMENT 
  
 Dated as of July 26, 2005 

 TABLE OF CONTENTS 
  

					
	 	 	 	 	Page

	SECTION 1.	 	APPOINTMENT OF WARRANT AGENT.	 	2
	SECTION 2.	 	ISSUANCE OF WARRANTS; WARRANT CERTIFICATES.	 	2
	            2.1	 	Form and Dating.	 	2
	            2.2	 	Execution.	 	3
	            2.3	 	Warrant Registrar.	 	4
	            2.4	 	Holder Lists.	 	4
	SECTION 3.	 	TERMS OF WARRANTS; EXERCISE OF WARRANTS.	 	5
	SECTION 4.	 	PAYMENT OF TAXES.	 	14
	SECTION 5.	 	RESERVATION OF SHARES.	 	15
	SECTION 6.	 	OBTAINING STOCK EXCHANGE LISTINGS.	 	16
	SECTION 7.	 	ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES ISSUABLE; FUNDAMENTAL CHANGE.	 	17
	SECTION 8.	 	FRACTIONAL INTERESTS.	 	22
	SECTION 9.	 	WARRANT AGENT.	 	23
	            9.1	 	Duties and Obligations; Limitations of Liability	 	23
	            9.2	 	Merger, Consolidation or Change of Name of Warrant Agent.	 	29
	            9.3	 	Change of Warrant Agent.	 	30
	SECTION 10.	 	TRANSFER; REPLACEMENT; CANCELLATION.	 	31
	            10.1	 	Transfer.	 	31
	            10.2	 	Replacement Warrants.	 	36
	            10.3	 	Temporary Warrants.	 	37
	            10.4	 	Cancellation.	 	37
	SECTION 11.	 	NOTICES TO COMPANY AND WARRANT AGENT.	 	38
	SECTION 12.	 	SUPPLEMENTS AND AMENDMENTS.	 	39
	SECTION 13.	 	SUCCESSORS.	 	42
	SECTION 14.	 	TERMINATION.	 	42
	SECTION 15.	 	CERTAIN DEFINITIONS.	 	42
	SECTION 16.	 	WARRANT HOLDER NOT DEEMED A STOCKHOLDER.	 	56
	SECTION 17.	 	GOVERNING LAW.	 	56
	SECTION 18.	 	BENEFITS OF THIS AGREEMENT.	 	56
	SECTION 19.	 	COUNTERPARTS.	 	57

			
	 EXHIBIT A
	  	 
	FORM OF WARRANT CERTIFICATE	  	A-1
	FORMS OF ELECTION TO PURCHASE	  	A-9
	SCHEDULE OF EXCHANGES OF INTERESTS IN GLOBAL WARRANT	  	A-10
		
	EXHIBIT B	  	 
	FORM OF INVESTMENT LETTER FOR EXERCISE	  	B-1
		
	EXHIBIT C	  	 
	FORM OF INVESTMENT LETTER FOR TRANSFER	  	C-1
		
	SCHEDULE I	  	 
	EBITDA ADJUSTMENTS	  	 

  
  

 ii 

 WARRANT AGREEMENT 
  

This Warrant Agreement, dated as of July 26, 2005 (this “Warrant Agreement” or “Agreement”), is between
ITC^DeltaCom, Inc., a Delaware corporation (the “Company”), and Mellon Investor Services LLC, a New Jersey limited liability company, as warrant agent (the “Warrant Agent”). Unless
elsewhere defined herein, capitalized terms used herein shall have the meaning given to them in Section 15. 
  
 W I T N E S S E T H: 
  
 WHEREAS, pursuant to the Securities Purchase Agreement, dated as of July 26, 2005, among the Corporation and the other parties identified therein, the Company proposes to issue and deliver 16,175,000 warrants
(each, a “Warrant”) to purchase shares (the “Warrant Shares”) of the 8% Series C Convertible Redeemable Preferred Stock, par value $0.01 per share, of the Company; 
  
 WHEREAS, each Warrant shall also entitle the holder thereof, at such
holder’s election and subject to the terms and conditions of this Agreement, to purchase shares of the Common Stock, par value $0.01 share, of the Company in lieu of shares of such 8% Series C Convertible Redeemable Preferred Stock; and

  
 WHEREAS, the Company wishes the Warrant Agent to act as
Warrant Agent on behalf of the Company, and the Warrant Agent is willing to so act, in connection with the issuance of the Warrants and the other matters provided herein; 
  
  

 NOW, THEREFORE, in consideration of the promises and the mutual agreements herein set forth, the parties
hereby agree as follows: 
  
 SECTION 1. APPOINTMENT OF WARRANT AGENT.

  
 The Company hereby appoints the Warrant Agent to act as
agent for the Company in accordance with the express terms and conditions set forth hereinafter in this Agreement, and the Warrant Agent hereby accepts such appointment. 
  
 SECTION 2. ISSUANCE OF WARRANTS; WARRANT CERTIFICATES. 
  
 2.1 Form and Dating. 
  
 (a) The Warrants shall be represented by certificates substantially in the form of Exhibit A hereto (the “Warrant
Certificates”). The Warrant Certificates may have notations, legends or endorsements required by law, stock market or stock exchange rule or usage (none of which shall affect the rights, duties or obligations of the Warrant Agent as set
forth in this Agreement). Each Warrant Certificate shall be dated the date of the countersignature by the Warrant Agent. The terms and provisions contained in the Warrant Certificates shall constitute, and are hereby expressly made, a part of this
Warrant Agreement. The Company and the Warrant Agent, by their execution and delivery of this Warrant Agreement, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Warrant Certificate
conflicts with the express provisions of this Warrant Agreement, the provisions of this Warrant Agreement shall govern and be controlling. 
  
 (b) Warrants may be issued in global form and shall include the Global Warrant Legend set forth in Exhibit A hereto and the “Schedule of Exchanges of
Interests in Global Warrant” attached thereto. Warrants may also be issued in definitive form but without the Global Warrant Legend and without the “Schedule of Exchanges of Interests in Global Warrant” (the “Definitive
Warrants”). Each Global Warrant shall represent such of the outstanding Warrants as shall be specified therein and each Global Warrant shall provide that it 
  

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 shall represent the number of outstanding Warrants from time to time endorsed thereon and that the number of outstanding
Warrants represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions or other adjustments pursuant to Section 7. Any endorsement of a Global Warrant to reflect the amount of any increase or
decrease in the number of outstanding Warrants represented thereby shall be made by the Warrant Agent (upon specific written instruction from the Company) in accordance with instructions given by the Holder thereof as required by Section 10.

  
 2.2 Execution. 
  
 An Officer of the Company shall sign each Warrant Certificate on behalf of
the Company by manual or facsimile signature. If the Officer of the Company whose signature is on a Warrant no longer holds that office at the time a Warrant Certificate is countersigned, such Warrant shall nevertheless be valid. A Warrant shall not
be valid until countersigned by the manual or facsimile signature of the Warrant Agent. The signature of the Warrant Agent shall be conclusive evidence that the Warrant has been properly issued under this Warrant Agreement. Upon its receipt of (i) a
written order of the Company containing specific instructions signed by an Officer (a “Warrant Countersignature Order”) and (ii) all other relevant information which the Warrant Agent may request, the Warrant Agent shall
countersign Warrant Certificates for original issue up to the number of Warrants stated in the recitals hereto. The Warrant Agent may appoint an agent acceptable to the Company to countersign Warrants. Such an agent may countersign Warrants whenever
the Warrant Agent may do so. Each reference in this Warrant Agreement to a countersignature by the Warrant Agent includes a countersignature by such agent. Such an agent has the same rights as the Warrant Agent to deal with the Company or an
Affiliate of the Company. 
  

 3 

 2.3 Warrant Registrar. 
  
 The Company shall maintain an office or agency where Warrants may be presented for registration of transfer or for exchange
(the “Warrant Registrar”). The Warrant Registrar shall keep a register of the Warrants and of their transfer and exchange. The Company may appoint one or more co-Warrant Registrars. The term “Warrant Registrar”
includes any co-Warrant Registrar. The Company may change any Warrant Registrar without notice to any Holder. The Company shall notify the Warrant Agent in writing of the name and address of any agent (including any Warrant Registrar) that is not a
party to this Warrant Agreement. If the Company fails to appoint or maintain another entity as the Warrant Registrar, the Warrant Agent shall act as the Warrant Registrar. The Company or any of its subsidiaries may act as Warrant Registrar. The
Company initially appoints the Warrant Agent to act as the Warrant Registrar with respect to the Global Warrants and The Depository Trust Company (“DTC”) to act as Depositary with respect to the Global Warrants. The Warrant
Registrar is hereby granted all of the rights, powers, protections, indemnifications and exculpations that have been granted to the Warrant Agent under this Agreement, including, without limitation, the rights, powers, protections, indemnifications
and exculpations granted under Section 9. 
  
 2.4 Holder Lists.

  
 The Warrant Agent shall preserve in as current a form as
is reasonably practicable the most recent list available to it of the names and addresses of all Holders. The Company shall promptly furnish to the Warrant Agent, at such times as the Warrant Agent may request in writing, a list, in such form and as
of such date as the Warrant Agent may reasonably require, of the names and addresses of the Holders. 
  

 4 

 SECTION 3. TERMS OF WARRANTS; EXERCISE OF WARRANTS. 
  
 (a) Subject to the terms of this Agreement, each Holder shall have the right, which may be exercised at any time and from
time to time during the period commencing on the date specified herein as the “Initial Exercise Date” and ending immediately prior to 5:00 p.m., New York City time, on July 1, 2009 (the “Exercise
Period”), to receive from the Company, unless such Holder shall make a Common Stock Purchase Election, the number of fully paid and non-assessable Warrant Shares which the Holder may at the time be entitled to receive upon exercise of
such Warrants upon payment, subject to Section 3(f), of the price provided in this Section 3(a), as adjusted from time to time in accordance with Section 7 (the “Exercise Price”), in cash, by wire transfer or by certified or
official bank check payable to the order of the Company; provided that Holders holding Warrants shall be able to exercise their Warrants only in accordance with the procedures set forth in this Agreement and the Warrant Certificate and only if (i) a
registration statement relating to the exercise of the Warrants and issuance of the Warrant Shares (or, upon a Common Stock Purchase Election, shares of Common Stock) upon such exercise is then effective under the Securities Act of 1933, as amended
(the “Securities Act”), or (ii) the exercise of such Warrants and the issuance of the Warrant Shares (or, upon a Common Stock Purchase Election, shares of Common Stock) upon such exercise is exempt from the
registration requirements of the Securities Act and such Warrant Shares (or shares of Common Stock, as the case may be) are qualified for sale or exempt from registration or qualification under the applicable securities laws of the states in which
the various Holders of the Warrants or other Persons to whom it is proposed that such Warrant Shares (or shares of Common Stock, as the case may be) be issued upon exercise of the Warrants reside. Each Warrant shall be exercisable for the number of
shares of Series C Preferred Stock, subject to adjustment in accordance with Section 7, equal to the Series C Preferred Stock Exercise Amount. 
  

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 From and after the Issue Date, the Exercise Price shall be $0.010; provided that the Exercise Price shall increase as of
the Initial Exercise Date to the price specified below if the Company shall have attained the amount specified opposite such price as “LTM EBITDA” for the applicable LTM EBITDA measurement period described below: 
  

				
	 LTM EBITDA

	  	Exercise Price

	 $72.5 million to, but not including, $75.0 million
	  	$	0.125
	 $75.0 million to, but not including, $77.5 million
	  	$	0.250
	 $77.5 million to, but not including, $80.0 million
	  	$	0.375
	 $80.0 million or greater
	  	$	0.500

  
 If the Initial Exercise Date shall be
June 30, 2007, LTM EBITDA shall be equal to the sum of the Company’s EBITDA for the Company’s four consecutive fiscal quarters ending on March 31, 2007 and shall be derived from the unaudited condensed consolidated financial statements of
the Company for such fiscal quarters prepared on a basis consistent with the Company’s most recent audited condensed consolidated financial statements. If the Initial Exercise Date shall occur before June 30, 2007, LTM EBITDA shall be equal to
the product of (x) two and (y) the sum of the Company’s EBITDA for the Company’s two consecutive fiscal quarters ending on the last day of the fiscal quarter immediately preceding the fiscal quarter in which the Initial Exercise Date shall
occur and for which condensed consolidated financial statements of the Company are available and shall be derived from the unaudited condensed consolidated financial statements of the Company for such fiscal quarters prepared on a basis consistent
with the Company’s most recent audited condensed consolidated financial statements. 
  

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 As soon as reasonably practicable after the Initial Exercise Date, an Officer shall deliver a certificate to the Warrant
Agent that shall set forth the applicable LTM EBITDA and, if applicable, the increased Exercise Price. Notwithstanding this Section 3(a) or any other provision of this Agreement or any Warrant to the contrary, upon the exercise of any Warrants, the
Company shall receive payment of the Exercise Price in an amount not less than the par value of the shares of Series C Preferred Stock issuable upon such exercise. Each Warrant not exercised prior to 5:00 p.m., New York City time, on July 1, 2009
(the “Expiration Date”) shall become void and all rights thereunder and all rights in respect thereof under this Agreement shall cease as of such time. 
  
 (b) In order to exercise all or any of the Warrants to purchase shares of Series C Preferred Stock, the Holder thereof must
deliver to the Warrant Agent at its office set forth in Section 11 (i) the Warrant Certificate (in the case of Definitive Warrants), (ii) the form of election to purchase shares of Series C Preferred Stock on the reverse thereof duly and properly
filled in and signed, which signature shall be guaranteed by a bank or trust company having an office or correspondent in the United States or a broker or dealer which is a member of a registered securities exchange or the National Association of
Securities Dealers, Inc., and (iii) subject to Section 3(f), payment to the Warrant Agent for the account of the Company of the Exercise Price for the number of Warrant Shares in respect of which such Warrants are then exercised, as provided in
Section 3(a). In connection with the exercise of any of the Warrants, the Holder thereof may elect (such an election, a “Common Stock Purchase Election”), in lieu of exercising such Warrants to purchase shares of Series C Preferred
Stock, to purchase the number of shares of Common Stock into which the shares of Series C Preferred Stock otherwise issuable upon the exercise of such Warrants would be convertible pursuant to the Series C 
  

 7 

 Certificate of Designation as of the date of exercise of such Warrants. In order to exercise all or any of the Warrants
pursuant to a Common Stock Purchase Election, the Holder thereof must deliver to the Warrant Agent at its office set forth in Section 11 (i) the Warrant Certificate (in the case of Definitive Warrants), (ii) the form of election to purchase shares
of Common Stock on the reverse thereof duly and properly filled in and signed, which signature shall be guaranteed by a bank or trust company having an office or correspondent in the United States or a broker or dealer which is a member of a
registered securities exchange or the National Association of Securities Dealers, Inc., and (iii) subject to Section 3(f), payment to the Warrant Agent for the account of the Company of the Exercise Price for the number of shares of Series C
Preferred Stock that would have been issuable upon exercise of such Warrants if the Holder thereof had not made a Common Stock Purchase Election. If and when the context shall so require, any reference in this Agreement or any Warrant to the
exercise of any Warrant for shares of Series C Preferred Stock, or to the rights and obligations of the Company, the Warrant Agent or any Holder with respect to the issuance of Warrant Shares, also shall be deemed, mutatis mutandis, to refer
to the exercise of such Warrant for shares of Common Stock and to the rights and obligations of the Company, the Warrant Agent and such Holder with respect to the issuance of such shares of Common Stock; provided that any adjustment pursuant to
Section 7 shall apply solely in respect of the Series C Preferred Stock and not the Common Stock. 
  
 (c) If, at the time of the surrender of a beneficial interest in any Restricted Global Warrant or a Restricted Definitive Warrant in connection with any
exercise of such Warrant, such exercise and the issuance of the Warrant Shares (or, upon a Common Stock Purchase Election, shares of Common Stock) issuable upon such exercise shall not be registered under the Securities Act, it shall be a condition
to such exercise and the issuance of such Warrant 
  

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 Shares (or shares of Common Stock, as the case may be) that (i) the Holder of such Warrant furnish to the Company an
investment letter substantially in the form of Exhibit B hereto and (ii) the Holder or each other Person to whom it is proposed that such Warrant Shares (or shares of Common Stock, as the case may be) be issued qualify as an “accredited
investor” as defined in Rule 501(a) of Regulation D under the Securities Act. The Company may waive compliance with such condition, in whole or in part, in its sole discretion, including, without limitation, if the Company shall determine that
it may effect the proposed issuance in compliance with Regulation S under the Securities Act without unreasonable effort or expense. 
  
 (d) Subject to the provisions of Section 10, upon specific written instruction from the Company, the Warrant Agent shall deliver or cause to be delivered
with all reasonable dispatch, in such name or names as the Holder may designate in writing, a certificate or certificates for the number of whole Warrant Shares (or, upon a Common Stock Purchase Election, the number of whole shares of Common Stock)
issuable upon exercise of the Warrants delivered by the Holder for exercise. Such certificate or certificates shall be deemed to have been issued and any Person so designated to be named therein shall be deemed to have become a holder of record of
such Warrant Shares (or shares of Common Stock, as the case may be) as of the date of the surrender of such Warrants and, subject to Section 3(f), payment of the Exercise Price; provided, however, that if such Person would be so deemed to have
become a holder of record of Warrant Shares as of a date of record referred to in Section 7(a) or 7(b), then, notwithstanding the foregoing, such Person shall be deemed to have become a holder of record of such Warrant Shares on the first Business
Day immediately following such date of record. 
  
 (e) The
Warrants shall be exercisable, at the election of the Holders thereof, either in full or from time to time in part, provided that, subject to adjustment pursuant to 
  

 9 

 Section 7, Warrants may not be exercised by any Holder for an amount less than 10,000 Warrant Shares (or in the event of
any Common Stock Purchase Election, the number of shares of Common Stock into which 10,000 Warrant Shares would be convertible pursuant to the Series C Certificate of Designation as of the date of exercise of such Warrants) unless such Holder only
owns, in the aggregate, such lesser amount. The Company may waive compliance with such condition, in whole or in part, in its sole discretion, and shall give written notice to the Warrant Agent in the case of any such waiver. If fewer than all the
Warrants represented by a Warrant Certificate are exercised, such Warrant Certificate shall be surrendered and a new Warrant Certificate of the same tenor and for the number of Warrants which were not exercised shall be executed promptly by the
Company and delivered promptly to the Warrant Agent and, upon written notice thereof from the Company, the Warrant Agent shall countersign the new Warrant Certificate, registered in such name or names as may be directed in writing by the Holder, and
shall promptly deliver the new Warrant Certificate to the Person or Persons entitled to receive such new Warrant Certificate (as specified in writing by the Company). 
  
 (f) In lieu of making the payment of the Exercise Price in connection with the exercise of each Warrant pursuant to Section
3(a) (but in all other respects in accordance with the exercise procedure set forth above, as such exercise procedure may be adjusted to reflect the conversion referred to herein), the Holder of each Restricted Warrant may elect to convert such
Restricted Warrant into shares of Series C Preferred Stock by providing the Company and the Warrant Agent with joint written notification of such election, in which event the Company shall issue to such Holder the number of shares of Series C
Preferred Stock calculated in accordance with the following formula: 
  
 X = (A - B) x C 
               A 
  

 10 

 where 
  

	 	X	= the number of shares of Series C Preferred Stock issuable upon exercise pursuant to this Section 3(f) 

  

	 	A	= the product of (x) the Conversion Rate and (y) the Closing Price, each calculated as of the Business Day immediately preceding the date on which the Holder delivers the Warrant
Certificate and form of election to purchase to the Company pursuant to Section 3(b) 

  

	 	B	= the Exercise Price 

  

	 	C	= the number of shares of Series C Preferred Stock as to which such Restricted Warrant is being exercised pursuant to Section 3(a) 

  
 If the foregoing calculation results in a negative number, no shares of Series C Preferred
Stock shall be issued upon conversion pursuant to this Section 3(f). Notwithstanding this Section 3(f) or any other provision of this Agreement to the contrary, the Holder of any Restricted Warrant may elect to convert such Restricted Warrant into
shares of Series C Preferred Stock as provided in this Section 3(f) only if the Board of Directors shall determine that upon such conversion the Company shall receive consideration in an amount not less than the par value of the shares of Series C
Preferred Stock issuable upon such conversion. Upon any Common Stock Purchase Election, the Holder of each Restricted Warrant may elect to convert such Restricted Warrant into shares of Common Stock by providing the Company and the Warrant Agent
with joint written notification of such election, in which event the Company shall issue to such Holder the number of shares of Common Stock issuable under such Restricted Warrant as calculated after application of the foregoing formula in respect
of the shares of Series C Preferred Stock that 
  

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 would have issuable upon exercise of such Restricted Warrant if such Holder had not made a Common Stock Purchase
Election. Notwithstanding this Section 3(f) or any other provision of this Agreement to the contrary, the Holder of any Restricted Warrant may elect to convert such Restricted Warrant into shares of Common Stock as provided in this Section 3(f) only
if the Board of Directors shall determine that upon such conversion the Company shall receive consideration in an amount not less than the par value of the shares of Common Stock issuable upon such conversion. Upon the request of any Holder in
connection with the conversion of any Restricted Warrant as provided in this Section 3(f), the Company shall execute and deliver to such Holder the Exchange Agreement with respect to such conversion. Any reference in this Agreement or any Warrant to
exercise of a Warrant shall be deemed also to refer to conversion of a Restricted Warrant in accordance with this Section 3(f), as the context may require. 
  
 (g) All Warrant Certificates surrendered upon exercise of Warrants shall be cancelled by the Warrant Agent. Such cancelled Warrant Certificates shall then
be disposed of by the Warrant Agent in its customary manner. The Warrant Agent shall account promptly to the Company with respect to Warrants exercised and concurrently pay to the Company all monies received by the Warrant Agent for the purchase of
the Warrant Shares through the exercise of such Warrants. 
  
 (h)
The Warrant Agent shall keep copies of this Agreement and any written notices given or received hereunder available for inspection by the Holders during normal business hours at its office. The Company shall supply the Warrant Agent from time to
time with such numbers of copies of this Agreement as the Warrant Agent may reasonably request. 
  

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 (i) During the Exercise Period, for so long as the Holders of the Warrants on the Issue Date continue to
be the beneficial and record owners of at least 50% of all Warrants then outstanding, in the event of: 
  
 (i) any taking by the Company of a record of the holders of any class of securities of the Company for the purpose of determining the
holders thereof who are entitled to receive any dividend or other distribution, or any right to subscribe for, purchase or otherwise acquire any shares of Capital Stock of any class or any other securities or property, or to receive any other right,
other than, in each case, (A) a regular quarterly or other periodic dividend publicly announced by the Company or provided for in the instrument governing such class of securities (including, without limitation, dividends payable on the Series A
Preferred Stock pursuant to the Series A Certificate of Designation, on the Series B Preferred Stock pursuant to the Series B Certificate of Designation, or on the Series C Preferred Stock pursuant to the Series C Certificate of Designation), (B)
any other issuance of the Series A Preferred Stock after the Issue Date pursuant to the Series A Certificate of Designation, any other issuance of the Series B Preferred Stock after the Issue Date pursuant to the Series B Certificate of Designation,
or any other issuance of the Series C Preferred Stock after the Issue Date pursuant to the Series C Certificate of Designation or (C) a regular quarterly or other periodic payment of interest in cash or securities on, or such payment of interest
effectuated by an increase in the amount of, any issue of the Company’s indebtedness in accordance with the instrument governing such indebtedness, or 
  
 (ii) the proposed filing of a certificate of dissolution in connection with any Liquidation Event, 
  

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 then and in each such event the Company shall give or cause to be given to each Holder of the Warrants a written notice
(with a copy thereof to the Warrant Agent) specifying (i) the date on which any such record is to be taken for the purpose of such dividend, distribution or right and a description of such dividend, distribution or right or the date on which the
filing of such certificate of dissolution is expected to be effected, as the case may be, and (ii) the date, if any, that is to be fixed, on which the holders of record of Common Stock (or other securities) shall be entitled to exchange their shares
of Common Stock (or other securities) for securities or other property deliverable upon such event. Such notice shall be given at least 20 days prior to the date specified in such notice on which such event, action or record is to be taken or on
which the filing of such certificate of dissolution is expected to be effected. Any failure by the Company to provide any such notice required by this Section 3(i) shall not affect the validity of any event, action or record required to be specified
in such notice. 
  
 (j) Without limiting the generality of Section
3(i), any notice required by Section 3(i) to be given to the Holders of Warrants shall be deemed delivered (i) upon personal delivery to the Holder to be notified, (ii) when sent by confirmed telex or facsimile if sent during normal business hours
of the recipient and, if not, then on the next Business Day, (iii) five days after having been deposited into the U.S. mails or (iv) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written
verification of receipt. All notices required by Section 3(i) shall be sent to each Holder at such Holder’s address appearing on the books of the Company. 
  

SECTION 4. PAYMENT OF TAXES. 
  
 The Company shall pay any and all taxes and governmental charges attributable to the initial issuance of Warrant Shares (or, upon a Common Stock Purchase
Election, shares of 
  

 14 

 Common Stock) upon the exercise of Warrants; provided that the Company shall not be required to pay any tax or charge
which may be payable in respect of any transfer involved in the issue of any Warrant Certificates or any certificates for Warrant Shares (or shares of Common Stock, as the case may be) in a name other than that of the registered holder of a Warrant
Certificate surrendered upon the exercise of a Warrant, and the Company and the Warrant Agent shall not be required to issue or deliver such Warrant Certificates unless or until the Person or Persons requesting the issuance thereof shall have paid
to the Company the amount of such tax or charge or shall have established to the satisfaction of the Company and the Warrant Agent that such tax or charge has been paid. 
  
 SECTION 5. RESERVATION OF SHARES. 
  
 (a) From and after the Series C Preferred Stock Certificate Date, the Company shall at all times reserve and keep available, free from preemptive rights,
out of its authorized but unissued Series C Preferred Stock, for the purpose of enabling it to satisfy any obligation to issue Warrant Shares upon exercise or conversion of Warrants, the maximum number of shares of Series C Preferred Stock which may
then be deliverable upon the exercise or conversion of all outstanding Warrants. The Company shall at all times reserve and keep available, free from preemptive rights, out of its authorized but unissued Common Stock, for the purpose of enabling it
to satisfy any obligation to issue Common Stock upon the exercise or conversion of Warrants pursuant to a Common Stock Purchase Election or upon the conversion of Warrant Shares, the maximum number of shares of Common Stock which may then be
deliverable upon the exercise or conversion of all outstanding Warrants pursuant to Common Stock Purchase Elections or upon the conversion of all outstanding Warrant Shares. All such Warrant Shares and Common Stock, as applicable, when issued upon
such exercise or conversion of the Warrants and, in the case of the Common Stock, upon conversion of the Warrant Shares shall be validly issued, fully paid and non-assessable, free of all Liens and not subject to preemptive rights. 
  

 15 

 (b) The Company shall use commercially reasonable efforts to mail to its stockholders the information
statement required pursuant to, and otherwise to satisfy the requirements of, Regulation 14C under the Securities Exchange Act of 1934, as amended, in connection with its issuance of the Warrants on the Issue Date as promptly as reasonably
practicable after the Issue Date and (ii) shall not take any action, fail to take any action or permit any action to be taken which would cause any event referred to in clause (ii) or (iii) of the definition of Initial Exercise Date to occur prior
to the Series C Preferred Stock Certificate Date. If the Company shall breach the foregoing covenant and/or there shall occur an event referred to in clause (ii) or (iii) of the definition of Initial Exercise Date, and, as a result thereof, the
Company shall not have sufficient shares of authorized but unissued shares of Series C Preferred Stock to permit a Holder to exercise its Warrants in full to purchase shares of Series C Preferred Stock, the Company shall, with respect to any such
Warrant which such Holder shall not be able to exercise in part or in full, within ten Business Days after receiving written notice from such Holder requesting such payment, pay to such Holder as liquidated damages an amount in cash equal to the
greater of (i) $1.00 per Warrant and (ii) the product of (x) the average Closing Price for the five consecutive trading days prior to the date of such Holder’s request multiplied by (y) the number of shares of Common Stock into which a Warrant
Share would be convertible pursuant to the Series C Certificate of Designation as of the date of such Holder’s request. 
  
 SECTION 6. OBTAINING STOCK EXCHANGE LISTINGS. 
  
 For so long as the Warrant Shares are outstanding, the Company shall use reasonable efforts to have the Common Stock issuable upon conversion of the
Warrant Shares or, 
  

 16 

 upon a Common Stock Purchase Election, the exercise or conversion of the Warrants listed on the National Market System of
NASDAQ (the “NMS”) or on a national securities exchange, or quoted on a national automated quotation system other than the NMS, if any, on which the Common Stock is then listed or quoted. 
  
 SECTION 7. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES ISSUABLE; FUNDAMENTAL
CHANGE. 
  
 (a) If a date of record should be fixed at any
time, whether by the Company or by operation of law, for the subdivision (by any stock split, stock dividend, recapitalization, reorganization, reclassification or otherwise) of the shares of Series C Preferred Stock acquirable hereunder into a
greater number of shares, or for the determination of the holders of Series C Preferred Stock entitled to receive a dividend or other distribution payable in additional shares of Series C Preferred Stock, Convertible Securities or Options without
payment of any consideration for the additional shares of Series C Preferred Stock, Convertible Securities or Options (including the additional shares of Series C Preferred Stock or Convertible Securities issuable upon conversion or exercise of such
Options), then, as of such date of record, the Exercise Price in effect immediately prior to such date of record shall be proportionately reduced. If such subdivision of the shares of Series C Preferred Stock or the payment of such dividend or
distribution does not thereafter occur, the Exercise Price in effect shall be readjusted to the Exercise Price that would have been in effect if the date of record for such subdivision, dividend or distribution had never been fixed. For purposes of
computing a proportionate reduction in the Exercise Price as of any date of record, if any such dividend or distribution shall be payable in (i) Convertible Securities, whether or not immediately exercisable, convertible or exchangeable, the maximum
total number of shares of Series C Preferred Stock issuable upon the conversion or exchange of all such Convertible Securities shall, as of such date of record, be 
  

 17 

 deemed to be outstanding or (ii) Options, whether or not immediately exercisable, the maximum total number of shares of
Series C Preferred Stock issuable upon the exercise of all such Options shall, as of such date of record, be deemed to be outstanding. If, in any case, the total number of shares of Series C Preferred Stock issuable upon exercise of any Option or
upon conversion or exchange of any Convertible Securities is not, in fact, issued and the rights to exercise such Option or to convert or exchange such Convertible Securities shall have expired or terminated, the Exercise Price then in effect shall
be readjusted to the Exercise Price which would have been in effect at the time of such expiration or termination if such Option or Convertible Securities, to the extent outstanding immediately prior to such expiration or termination (other than in
respect of the actual number of shares of Series C Preferred Stock issued upon exercise, conversion or exchange thereof), had never been issued. Notwithstanding this Section 7(a) or any other provision of this Agreement to the contrary, the Exercise
Price shall not be reduced to an amount which is less than the par value of the shares of Series C Preferred Stock. 
  
 (b) If a date of record should be fixed at any time, whether by the Company or by operation of law, for the combination (by reverse stock split,
recapitalization, reorganization, reclassification or otherwise) of the shares of Series C Preferred Stock acquirable hereunder into a smaller number of shares of Series C Preferred Stock, then, as of such date of record, the Exercise Price in
effect immediately prior to such date of record shall be proportionately increased. If such combination of the shares of Series C Preferred Stock does not thereafter occur, the Exercise Price then in effect shall be readjusted to the Exercise Price
that would have been in effect if the date of record for such combination had never been fixed. 
  
 (c) After the occurrence of any Exercise Price Adjustment Event requiring adjustment of the Exercise Price, the Company shall give written notice thereof
to the Holders of 
  

 18 

 the Warrants and to the Warrant Agent within ten Business Days following the occurrence of such Exercise Price Adjustment
Event; provided that if an adjustment of the Exercise Price pursuant to Section 7(a) or 7(b) shall become effective as of or after the record date for the applicable Exercise Price Adjustment Event, but before the occurrence of such Exercise Price
Adjustment Event, the Company shall give such written notice within ten Business Days following such record date or subsequent date. Such notice shall state the Exercise Price and any change in the number of Warrant Shares issuable upon exercise of
the Warrants resulting from such Exercise Price Adjustment Event and shall set forth in reasonable detail the method of calculation and the facts upon which such calculation is based. Such calculation shall be certified by an Officer of the Company.
Notice of any Exercise Price Adjustment Event resulting in an adjustment of the Exercise Price shall be deemed given to the Holders of Warrants (but not to the Warrant Agent) (i) by the Company’s inclusion of the information specified in the
second sentence of this Section 7(c) in the Company’s current report or next quarterly or annual report filed with the Securities and Exchange Commission pursuant to the Securities Exchange Act of 1934, as amended, or (ii) at the option of the
Company, by the Company’s mailing to such Holders of a written notice containing such information, in each case within the period specified in the first sentence of this Section 7(c). 
  
 (d) Anything in this Section 7 to the contrary notwithstanding, the Company
shall not be required to give effect to any adjustment of the Exercise Price unless and until the net effect of one or more adjustments required hereunder (each of which shall be carried forward until counted toward adjustment), determined as
provided therein, shall have resulted in a change of the Exercise Price by at least 1%, and when the cumulative net effect of more than one adjustment so determined shall be to change the Exercise Price by at least 1%, such change of the Exercise
Price shall thereupon be given effect. 
  

 19 

 (e) Upon the occurrence of a Fundamental Change, there shall be no adjustment of the Exercise Price and
each Warrant then outstanding, without the consent of any Holder of Warrants, shall become exercisable only into the kind and amount of shares of Capital Stock or other securities (of the Company or another issuer), cash or other property receivable
upon such Fundamental Change by a holder of the number of shares of Common Stock issuable upon conversion of the Series C Preferred Stock for which such Warrants could have been exercised immediately prior to the effective date of such Fundamental
Change, assuming such holder of Common Stock (x) is not a Person (or a Related Entity of a Person) with which the Company consolidated, into which the Company merged or which merged into the Company, or to or with which the applicable sale,
conveyance, lease, exchange, transfer or other transaction constituting such Fundamental Change was effected, and (y) failed to exercise the holder’s rights of election, if any, as to the kind of amount of Capital Stock or other securities,
cash or other property receivable upon such Fundamental Change. In any such event, effective provisions shall be made in the certificate or articles of incorporation of the resulting or surviving corporation, in any contract of sale, conveyance,
lease, exchange or transfer, or otherwise so that any resulting or surviving corporation or any Transferee in connection with such Fundamental Change shall expressly assume the obligation to deliver, to the Holders of the Warrants, such shares of
Capital Stock, or other securities, cash or other property (i) upon exercise of the Warrants, if the Warrants shall remain outstanding following such Fundamental Change, or (ii) upon the consummation of such Fundamental Change or thereafter as
provided in such effective provisions, if the Warrants shall not remain outstanding following such Fundamental Change. 
  

 20 

 The provisions of this Section 7(e) similarly shall apply to successive Fundamental Changes and shall be the sole right
of Holders of Warrants in connection with any Fundamental Change. The Company shall notify the Warrant Agent in writing of the occurrence of any Fundamental Change, and the Warrant Agent shall not be deemed to have knowledge of any such Fundamental
Change unless and until it has actually received written notice thereof. 
  
 (f) All Warrants originally issued by the Company subsequent to any adjustment made to the Exercise Price hereunder shall evidence the right to purchase, at the adjusted Exercise Price, the number of Warrant Shares
for which such Warrants are exercisable after giving effect to any adjustment thereto pursuant to Section 7(g) in connection with such adjustment of the Exercise Price, all subject to further adjustment as provided herein. 
  
 (g) Upon the occurrence of each Exercise Price Adjustment Event (or if an
adjustment of the Exercise Price pursuant to Section 7(a) or 7(b) shall become effective as of or after the record date for such Exercise Price Adjustment Event, but before the occurrence of such Exercise Price Adjustment Event, as of or after such
record date, as the case may be), each Warrant outstanding immediately prior to such Exercise Price Adjustment Event (or immediately prior to such other date as of which the Exercise Price shall have been adjusted, as aforesaid) shall thereafter
evidence the right to purchase, at the adjusted Exercise Price, that number of shares of Series C Preferred Stock (calculated to the nearest one-one hundredth of a share) obtained by (i) multiplying (x) the number of Warrant Shares covered by such
Warrant immediately prior to such adjustment of the Exercise Price by (y) the Exercise Price in effect immediately prior to such adjustment of the Exercise Price and (ii) dividing the product so obtained by the Exercise Price in effect immediately
after such adjustment of the Exercise Price. 
  

 21 

 (h) Irrespective of any adjustments of the Exercise Price or in the number or kind of shares purchasable
upon the exercise of the Warrants, Warrants theretofore and thereafter issued may continue to express the Exercise Price per share and the number of shares which were expressed upon the initial Warrant Certificates issued hereunder. 
  
 (i) The Company shall calculate or determine any adjustments with respect to
the Exercise Price and the kind or amount of shares or other securities or any property receivable by Holders upon the exercise of Warrants required from time to time under this Section 7 in accordance with its provisions and shall give written
notice of each such calculation or determination to the Warrant Agent as provided herein, as required by the Warrant Agent to perform its duties expressly set forth herein, or as otherwise requested by the Warrant Agent. 
  
 SECTION 8. FRACTIONAL INTERESTS. 
  
 The Company shall not be required to issue fractional Warrant Shares or
fractional shares of Common Stock upon the exercise of Warrants. If more than one Warrant shall be presented for exercise in full at the same time by the same Holder, the number of full Warrant Shares (or in the event of a Common Stock Purchase
Election, the number of full shares of Common Stock) which shall be issuable upon the exercise thereof shall be computed on the basis of the aggregate number of Warrant Shares (or shares of Common Stock, as the case may be) purchasable upon exercise
of the Warrants so presented. If any fraction of a Warrant Share would, except for the provisions of this Section 8, be issuable upon the exercise of any Warrants (or specified portion thereof), the Company may, in its sole discretion, (i) round
such fractional Warrant Share up to the nearest whole number or (ii) pay an amount in cash equal to the Liquidation Preference per Warrant Share as of the Business Day immediately preceding the date the Warrant is presented for exercise, multiplied
by such fraction, rounded up to the nearest 
  

 22 

 whole cent. If, upon a Common Stock Purchase Election, any fraction of a share of Common Stock would, except for the
provisions of this Section 8, be issuable upon the exercise of any Warrants (or specified portion thereof), the Company may, in its sole discretion, (i) round such fractional share of Common Stock up to the nearest whole number or (ii) pay an amount
in cash equal to the Closing Price per share of Common Stock as of the Business Day immediately preceding the date the Warrant is presented for exercise, multiplied by such fraction, rounded up to the nearest whole cent. 
  
 SECTION 9. WARRANT AGENT. 
  
 9.1 Duties and Obligations; Limitations of Liability 
  
 The Warrant Agent undertakes only the duties and obligations expressly
imposed by this Agreement (and no implied duties or obligations) upon the following terms and conditions, by all of which the Company and the Holders of Warrants, by their acceptance thereof, shall be bound: 
  
 (a) The Warrant Agent shall not, by countersigning Warrant Certificates or
by any other act hereunder, be deemed to make any representations as to validity or authorization of, and shall incur no liability as a result of, (i) the Warrants or the Warrant Certificates (except as to its countersignature thereon), (ii) any
shares or other securities or any property delivered upon exercise of any Warrant, (iii) the accuracy of the computation of the number or kind or amount of shares or other securities or any property deliverable upon exercise of any Warrant or (iv)
the correctness of any of the representations of the Company made in any such Warrant Certificate. The Warrant Agent shall not at any time have any duty to calculate or determine whether any facts exist that may require any adjustments pursuant to
Section 3(a) or Section 7 with respect to the Exercise Price or the kind and amount of shares or other securities or any 
  

 23 

 property receivable by Holders upon the exercise of Warrants required from time to time. The Warrant Agent shall have no
duty or responsibility to determine or verify, and shall incur no liability as a result of any failure to determine or verify, the accuracy or correctness of any such calculation or determination or with respect to the methods employed in making
such calculation or determination. The Warrant Agent shall not be accountable with respect to, and shall incur no liability as a result of, the validity or value (or the kind or amount) of any Warrant Shares or of other securities or any property
which may at any time be issued or delivered upon the exercise of any Warrant or upon any adjustment pursuant to Section 3(a) or Section 7, and it makes no representation with respect thereto. The Warrant Agent shall not be liable or responsible for
any failure of the Company to make any cash payment or to issue, transfer or deliver any Warrant Shares or stock certificates or other securities or property upon the surrender of any Warrant Certificate for the purpose of exercise or upon any
adjustment pursuant to Section 3(a) or Section 7. 
  
 (b) The
Warrant Agent shall not (i) be liable for any recital or statement of fact contained herein or in the Warrant Certificates or for any action taken, suffered or omitted by it on the belief that any Warrant Certificate or any other documents or any
signatures are genuine or properly authorized, (ii) be responsible for any failure on the part of the Company to comply with any of its covenants and obligations contained in this Agreement or in the Warrant Certificates or (iii) be liable for any
act or omission in connection with this Agreement except for its own gross negligence or willful misconduct (which gross negligence or willful misconduct must be determined by a final, nonappealable order, judgment, decree or ruling of a court of
competent jurisdiction). Anything in this Agreement to the contrary notwithstanding, in no event shall the Warrant Agent be liable for special, punitive, indirect, incidental or consequential loss 
  

 24 

 or damage of any kind whatsoever (including, but not limited, to lost profits), even if the Warrant Agent has been
advised of the possibility of such loss or damage. Any and all liability of the Warrant Agent under this Agreement shall be limited to the higher of (i) the amount of fees paid by the Company to the Warrant Agent pursuant to this Agreement or (ii)
$50,000. 
  
 (c) The Warrant Agent is hereby authorized to accept
and is protected in accepting advice or instructions with respect to the performance of its duties hereunder by order, instruction or other written notice given by the Company or by one or more Holders in accordance with the provisions hereof and to
apply to any Officer of the Company named in any such order, instruction or written notice for advice or instructions (which instructions shall be given in writing when requested), and the Warrant Agent shall not be liable for any action taken,
suffered or omitted to be taken by it in accordance with the advice or instructions in any such order, instruction or written notice. The Warrant Agent shall be fully protected and authorized in relying upon the most recent instructions received by
any such Officer of the Company. The Warrant Agent shall not be deemed to have knowledge of any event of which it was supposed to receive notice thereof or an order or instruction in regard to hereunder, and the Warrant Agent shall be fully
protected and shall incur no liability for failing to take any action in connection therewith unless and until it has received such order, instruction or notice. 
  
 (d) Whenever in the performance of its duties under this Agreement the Warrant Agent shall deem it necessary or desirable
that any fact or matter be proved or established by the Company prior to taking, omitting or suffering any action hereunder, such fact or matter (unless other evidence in respect thereof be herein specifically prescribed) may be deemed to be
conclusively proved and established by a certificate signed by any Officer of the Company and delivered to the Warrant Agent, and such certificate shall be full and complete 
  

 25 

 authorization and protection to the Warrant Agent and the Warrant Agent shall incur no liability for or in respect of any
action taken, omitted or suffered by it under the provisions of this Agreement in reliance upon such certificate. 
  
 (e) In the event the Warrant Agent has any questions or uncertainty as to what action it should take under this Agreement, the Warrant Agent is hereby
authorized and directed to accept advice and instructions with respect to the performance of its duties hereunder from any Officer of the Company, and to apply to any such Officer for advice or instructions in connection with its duties. Such advice
and instructions of any Officer of the Company shall be full authorization and protection to the Warrant Agent, and the Warrant Agent shall not be liable for any action taken, omitted or suffered by it in accordance with advice or instructions, for
any delay in acting while waiting for such advice or instructions, or in refraining from taking any action prior to receiving such advice or instructions. 
  
 (f) The Warrant Agent may execute and exercise any of the rights and powers hereby vested in it or perform any duty hereunder either itself (through its
officers, directors and employees) or by or through its attorneys or agents, and the Warrant Agent shall not be liable or accountable for any act, default, neglect or misconduct of any such attorneys or agents or for any loss to the Company or any
other Person resulting from any such act, default, neglect or misconduct in the absence of gross negligence or willful misconduct of the Warrant Agent in the selection and in the continued employment of any such attorney or agent (which gross
negligence or willful misconduct must be determined by a final, nonappealable order, judgment, decree or ruling of a court of competent jurisdiction). 
  
 (g) The Warrant Agent shall not be under any obligation or duty to institute, appear in or defend any action, suit or legal proceeding in respect hereof,
unless first indemnified 
  

 26 

 to its satisfaction, but this provision shall not affect the power of the Warrant Agent to take such action as the
Warrant Agent may consider proper, whether with or without such indemnity. The Warrant Agent shall promptly notify the Company in writing of any claim made or action, suit or proceeding instituted against it arising out of or in connection with this
Agreement. 
  
 (h) The Company shall perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and delivered all such further acts, instruments and assurances as may reasonably be required by the Warrant Agent in order to enable it to carry out or perform its duties and obligations
under this Agreement. 
  
 (i) The Warrant Agent shall act solely
as agent of the Company hereunder and does not assume any obligation or relationship of agency or trust for or with any of the Holders or any beneficial owners of Warrants. The Warrant Agent shall not be liable except for the failure to perform such
duties as are specifically set forth herein or specifically set forth in the Warrant Certificates, and no implied covenants or obligations shall be read into this Agreement against the Warrant Agent, whose duties and obligations shall be determined
solely by the express provisions hereof or the express provisions of the Warrant Certificates. 
  
 (j) The Company agrees promptly to pay the Warrant Agent from time to time, on demand of the Warrant Agent, compensation for its services hereunder as the Company and the Warrant Agent may agree from time to time, and
to reimburse the Warrant Agent for the reasonable costs, expenses and disbursements, including reasonable counsel fees and expenses incurred in connection with the preparation, delivery, amendment, execution and administration of this Agreement and
the exercise and performance of its duties hereunder. The Company agrees to indemnify the Warrant Agent for and save it harmless against any losses, liabilities, settlements, costs, damages, fines, judgments, penalties, demands, claims and expenses
arising 
  

 27 

 out of or in connection with the acceptance and administration of this Agreement, including reasonable costs, legal fees
and expenses of investigating or defending any claim of such liability, except that the Company shall have no liability hereunder to the extent that any of the foregoing results from the Warrant Agent’s own gross negligence or willful
misconduct (which gross negligence or willful misconduct must be determined by a final, nonappealable order, judgment, decree or ruling of a court of competent jurisdiction). The costs and expenses incurred in enforcing this right of indemnification
shall be paid by the Company. 
  
 (k) The Warrant Agent may at any
time consult with legal counsel satisfactory to it (who may be internal legal counsel for the Company), and the advice or opinion of such counsel shall be full and complete authorization and protection to the Warrant Agent and the Warrant Agent
shall incur no liability or responsibility to the Company or to any Holder for any action taken, suffered or omitted by it in accordance with the opinion or advice of such counsel. 
  
 (l) The Warrant Agent shall not be deemed to have knowledge of any Exercise Price Adjustment Event, any adjustment to the
Exercise Price, any change in the number of Warrant Shares issuable upon exercise of the Warrants or the kind or amount of shares or other securities or any property receivable by Holders upon the exercise of Warrants, unless and until it has
actually received written notice from the Company thereof, and the Warrant Agent is hereby instructed and authorized to rely conclusively on any such written notice. 
  
 (m) The Warrant Agent and any stockholder, director, officer or employee of the Warrant Agent may buy, sell or deal in any
of the Warrants or other securities of the Company or become pecuniarily interested in any transaction in which the Company may be interested, or contract with or lend money to the Company or otherwise act fully and freely as though it were not
Warrant Agent hereunder. Nothing herein shall preclude the Warrant Agent from acting in any other capacity for the Company or for any other legal entity. 
  

 28 

 (n) The Warrant Agent shall not be subject to, nor be required to comply with, any other agreement even
though reference thereto may be made in this Warrant Agreement, or to comply with any notice, instruction, direction, request or other communication, paper or document other than as expressly set forth in this Warrant Agreement. 

 
 (o) The provisions of this Section 9.1 shall survive the termination of
this Agreement, the termination, exercise or expiration of the Warrants, and the resignation or removal of the Warrant Agent. 
  
 9.2 Merger, Consolidation or Change of Name of Warrant Agent. 
  
 (a) Any Person into which the Warrant Agent may be merged or with which it may be consolidated, or any Person resulting from
any merger or consolidation to which the Warrant Agent shall be a party, or any Person succeeding to all or substantially all of the business of the Warrant Agent, shall be the successor to the Warrant Agent hereunder without the execution or filing
of any paper or any further act on the part of any of the parties hereto, provided that such Person would be eligible for appointment as a successor warrant agent under the provisions of Section 9.3. In case at the time such successor to the Warrant
Agent shall succeed to the agency created by this Agreement, and in case at that time any of the Warrant Certificates shall have been countersigned but not delivered, any such successor to the Warrant Agent may adopt the countersignature of the
original Warrant Agent; and in case at that time any of the Warrant Certificates shall not have been countersigned, any successor to the Warrant Agent may countersign such Warrant Certificates either in the name of the predecessor Warrant Agent or
in the name of the successor to the Warrant Agent; and in all such cases such Warrant Certificates shall have the full force and effect provided in the Warrant Certificates and in this Agreement. 
  

 29 

 (b) In case at any time the name of the Warrant Agent shall be changed and at such time any of the
Warrant Certificates shall have been countersigned but not delivered, the Warrant Agent whose name has been changed may adopt the countersignature under its prior name, and in case at that time any of the Warrant Certificates shall not have been
countersigned, the Warrant Agent may countersign such Warrant Certificates either in its prior name or in its changed name, and in all such cases such Warrant Certificates shall have the full force and effect provided in the Warrant Certificates and
in this Agreement. 
  
 9.3 Change of Warrant Agent.

  
 The Warrant Agent may resign its duties and be discharged
from all further duties and liability hereunder after giving 30 days’ prior written notice to the Company. If the Warrant Agent shall resign pursuant to the preceding sentence or if the Warrant Agent shall become incapable of acting as Warrant
Agent, the Company shall appoint a successor to such Warrant Agent. If the Company shall fail to make such appointment within a period of 30 days after it has been notified in writing of such incapacity or resignation by the Warrant Agent or by the
registered holder of a Warrant Certificate, then the Warrant Agent or any registered holder of any Warrant Certificate may apply at the expense of the Company to any court of competent jurisdiction for the appointment of a successor to the Warrant
Agent. Pending appointment of a successor to such Warrant Agent, either by the Company or by such a court, the duties of the Warrant Agent shall be carried out by the Company. The Holders of a majority of the then outstanding Warrants shall be
entitled at any time to remove the Warrant Agent and appoint a successor to such Warrant Agent. Any successor to the Warrant Agent need not be approved by the Company or the former Warrant Agent. After appointment, the successor to the Warrant

  

 30 

 Agent shall be vested with the same powers, rights, duties and responsibilities as if such successor had been originally
named as Warrant Agent without further act or deed; provided that the former Warrant Agent upon payment of all amounts owed to it shall deliver and transfer to the successor to the Warrant Agent any property at the time held by it hereunder and
execute and deliver any further assurance, conveyance, act or deed necessary for the purpose. Failure to give any notice provided for in this Section 9.3, however, or any defect therein, shall not affect the legality or validity of the appointment
of a successor to the Warrant Agent. 
  
 SECTION 10. TRANSFER; REPLACEMENT;
CANCELLATION. 
  
 10.1 Transfer. 
  
 (a) The transfer of beneficial interests in the Global Warrants shall be
effected through the Depositary, in accordance with the provisions of this Warrant Agreement and the Applicable Procedures. 
  
 (b) Subject to any applicable provisions of any Transaction Document, a sale, pledge, transfer, assignment or other disposition (each, a
“Transfer”) of a beneficial interest in any Restricted Global Warrant or the Transfer of a Restricted Definitive Warrant by a Holder may be made to a Person if: 
  
 (i) such Transfer is made pursuant to an effective registration statement under the Securities Act;

  
 (ii) such Holder delivers to the Company an
investment letter, substantially in the form of Exhibit C hereto, signed by the proposed transferee; or 
  
 (iii) the Company determines, in its sole discretion, that the Company may effect such Transfer in compliance with Regulation S under the
Securities Act without unreasonable effort or expense. 
  

 31 

 (c) The following legends (or legends substantially similar thereto) shall appear on the face of the
Warrants issued under this Warrant Agreement or the certificates representing the Restricted Warrant Shares, shares of Common Stock or other securities issuable upon exercise of such Warrants, as indicated below, unless specifically stated otherwise
in the applicable provisions of this Warrant Agreement. 
  
 (i) Private Placement Legend. Each Restricted Global Warrant and each Restrictive Definitive Warrant shall bear a legend in substantially the following form: 
  
 “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES MAY NOT
BE SOLD, PLEDGED, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER THE PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR IN A
TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS.” 
  

 32 

 (ii) Global Warrant Legend. Each Global Warrant shall bear a legend in
substantially the following form: 
  
 “THIS
GLOBAL WARRANT IS HELD BY THE DEPOSITARY (AS DEFINED IN THE WARRANT AGREEMENT GOVERNING THIS WARRANT) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT
THAT (I) THE WARRANT AGENT MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED BY THE DEPOSITARY IN ORDER FOR IT TO ACCEPT THE WARRANTS FOR ITS BOOK-ENTRY SETTLEMENT SYSTEM, (II) THIS GLOBAL WARRANT MAY BE DELIVERED TO THE WARRANT AGENT FOR
CANCELLATION PURSUANT TO SECTION 10.4 OF THE WARRANT AGREEMENT AND (III) THIS GLOBAL WARRANT MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY ONLY WITH THE PRIOR WRITTEN CONSENT OF ITC^DELTACOM, INC.” 
  
 (iii) Restricted Warrant Shares Legend. Each
certificate representing Restricted Warrant Shares, shares of Common Stock or other securities issued upon exercise of a Restricted Warrant shall bear a legend in substantially the following form: 
  
 “THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES MAY NOT
BE SOLD, PLEDGED, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN A TRANSACTION 
  

 33 

 WHICH IS EXEMPT UNDER THE PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR IN A TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS.” 
  
 (d) At such time as all beneficial interests in a particular Global Warrant have been exercised or exchanged for Definitive Warrants or a particular
Global Warrant has been exercised, redeemed, repurchased or cancelled in whole and not in part, each such Global Warrant shall be returned to or retained and canceled by the Warrant Agent in accordance with Section 10.4. At any time prior to such
cancellation, if any beneficial interest in a Global Warrant is exercised or exchanged for or transferred to a Person who shall take delivery thereof in the form of a beneficial interest in another Global Warrant or for Definitive Warrants, the
amount of Warrants represented by such Global Warrant shall be reduced accordingly and, upon receipt by the Warrant Agent of specific written instruction from the Company, an endorsement shall be made on such Global Warrant by the Warrant Agent or
by the Depositary at the direction of the Warrant Agent (which shall be required so to act only upon written direction by the Company) to reflect such reduction; and if the beneficial interest is being exchanged for or transferred to a Person who
shall take delivery thereof in the form of a beneficial interest in another Global Warrant, such other Global Warrant shall be increased accordingly and, upon receipt by the Warrant Agent of specific written instruction from the Company, an
endorsement shall be made on such Global Warrant by the Warrant Agent or by the Depositary at the direction of the Warrant Agent (which shall be required so to act only upon written direction by the Company) to reflect such increase. 
  

 34 

 (e) The following additional provisions shall apply to transfers and exchanges of Warrants hereunder:

  
 (i) To permit registrations of transfers and
exchanges, the Company shall execute and the Warrant Agent shall countersign Global Warrants and Definitive Warrants upon the Company’s written order containing specific instruction or at the Warrant Registrar’s written request containing
specific instruction. 
  
 (ii) No service charge
shall be made to a holder of a beneficial interest in a Global Warrant or to a Holder of a Definitive Warrant for any registration of transfer or exchange, but the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith. 
  
 (iii) All Global Warrants and Definitive Warrants issued upon any registration of transfer or exchange of Global Warrants or Definitive Warrants shall be the duly authorized, executed and issued warrants for Common Stock of the Company, not
subject to any preemptive rights, and entitled to the same benefits under this Warrant Agreement, as the Global Warrants or Definitive Warrants surrendered upon such registration of transfer or exchange. 
  
 (iv) Prior to due presentment for the registration of a
transfer of any Warrant, the Warrant Agent and the Company may deem and treat the Person in whose name any Warrant is registered as the absolute owner of such Warrant for all purposes and neither the Warrant Agent nor the Company shall be affected
by notice to the contrary. 
  
 (v) The Warrant
Agent shall countersign Global Warrants and Definitive Warrants in accordance with the provisions of Section 2.2. 
  

 35 

 (f) All certifications, certificates and opinions of counsel required to be submitted to the Warrant
Registrar pursuant to this Section 10 to effect a registration of transfer or exchange may be submitted by facsimile. 
  
 (g) The Company agrees that, at the request of a Holder, the Company shall remove from each Restricted Global Warrant, Restrictive Definitive Warrant
and/or certificate representing a Restricted Warrant Share, a share of Common Stock or other securities issuable upon exercise of a Restricted Warrant held by such Holder the legends contemplated by Section 10(c) regarding the restriction under the
Securities Act in the event that (i) counsel for such Holder has determined, and counsel for the Company reasonably concurs in such determination, that the Transfer of such securities is no longer restricted by the Securities Act or (ii) such
Restricted Global Warrants, Restrictive Definitive Warrants, Restricted Warrant Shares, shares of Common Stock or other securities, as applicable, are eligible to be transferred under Rule 144(k) under the Securities Act. 
  
 10.2 Replacement Warrants. 
  
 If any mutilated Warrant Certificate is surrendered to the Warrant Agent or
the Company and the Warrant Agent receives evidence to its satisfaction of the destruction, loss or theft of any Warrant Certificate, the Company shall issue and the Warrant Agent, upon receipt of a Warrant Countersignature Order, shall countersign
a replacement Warrant Certificate if the Warrant Agent’s requirements are met. If required by the Warrant Agent or the Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Warrant Agent and the
Company to protect the Company, the Warrant Agent and any agent thereof for purposes of the countersignature from any loss that any of them may suffer if a Warrant Certificate is replaced. The Company may charge for its expenses in replacing a
Warrant Certificate. 
  

 36 

 Every replacement Warrant is an additional warrant of the Company and shall be entitled to all of the
benefits of this Warrant Agreement equally and proportionately with all other Warrants duly issued hereunder. 
  
 10.3 Temporary Warrants. 
  
 Until certificates representing Warrants are ready for delivery, the Company may prepare and the Warrant Agent, upon receipt of a Warrant Countersignature
Order, shall issue temporary Warrant Certificates. Temporary Warrants shall be substantially in the form of certificated Warrants but may have variations that the Company considers appropriate for temporary Warrants and as shall be reasonably
acceptable to the Warrant Agent (but which shall not affect the rights, duties or obligations of the Warrant Agent as set forth in this Agreement). Without unreasonable delay, the Company shall prepare and the Warrant Agent shall countersign
definitive Warrant Certificates in exchange for temporary Warrant Certificates. 
  
 Holders of temporary Warrants shall be entitled to all of the benefits of this Warrant Agreement. 
  
 10.4 Cancellation. 
  
 The Company at any time may deliver Warrants to the Warrant Agent for cancellation. The Warrant Registrar shall forward to the Warrant Agent any Warrants
surrendered to them for registration of transfer, exchange or exercise. The Warrant Agent and no one else shall cancel all Warrants surrendered for registration of transfer, exchange, exercise, replacement or cancellation and shall dispose of such
canceled Warrants in its customary manner. The Warrant Registrar shall provide the Company with a list of all Warrants that have been cancelled. The Company may not issue new Warrants to replace Warrants that have been exercised or that have been
delivered to the Warrant Agent for cancellation. 
  

 37 

 SECTION 11. NOTICES TO COMPANY AND WARRANT AGENT. 
  
 Any notice or communication authorized by this Agreement to be given or made by the Warrant Agent or by the Holder of any
Warrant or by the Company to the Company or the Warrant Agent, as the case may be, shall be sufficiently given or made if in writing and delivered in person, mailed by first-class mail or sent by facsimile transmission addressed as follows:

  
 If to the Company: 
  
 ITC^DeltaCom, Inc. 
 7037 Old Madison Pike 
 Suite 400 
 Huntsville, Alabama 35806 
 Facsimile No.: (256) 382-3936 
 Attention: General Counsel 
  
 If
to the Warrant Agent: 
  
 Mellon Investor
Services LLC 
 200 Galleria Parkway, Suite 1900 
 Atlanta, Georgia 30339 
 Attention: Client Services Manager 
 Fax: 770-933-8336 
 Attention: Judy Hsu 
  
 With a copy to: 
  
 Mellon Investor Services LLC 
 85 Challenger Road 
 Ridgefield Park, New Jersey 07660-2108 
 Facsimile No.: (201) 296-4004 
 Attention: General Counsel 
  
 In
case the Company shall fail to maintain such office or agency or shall fail to give such notice of the location or of any change in the location thereof, presentations may be made and notices and demands may be served at the principal office of the
Warrant Agent. 
  
 The Company or the Warrant Agent by notice to
the other may designate additional or different addresses for subsequent notices or communications. 
  

 38 

 Any notice or communication mailed to a Holder shall be mailed to such Holder at its address as it
appears on the Warrant Register by first-class mail and shall be sufficiently given to such Holder if so mailed within the time prescribed. Copies of any such communication or notice to a Holder shall also be mailed to the Warrant Agent at the same
time. 
  
 Failure to transmit a notice or communication to a
Holder as provided herein or any defect in any such notice shall not affect its sufficiency with respect to other Holders. Except for a notice to the Warrant Agent, which is deemed given only when received, and except as otherwise provided in this
Agreement, if a notice or communication is mailed in the manner provided in this Section 11, it is duly given, whether or not the addressee receives it. 
  
 Where this Agreement provides for notice in any manner, such notice may be waived in writing by the Person entitled to receive such notice, either before
or after the event, and such waiver shall be the equivalent of such notice. Waivers of notice by Holders shall be filed with the Warrant Agent, but such filing shall not be a condition precedent to the validity of any action taken in reliance upon
such waiver. 
  
 In case by reason of the suspension of regular
mail service or by reason of any other cause it shall be impracticable to give such notice by mail, then such notification as shall be made with the approval of the Warrant Agent shall constitute a sufficient notification for every purpose
hereunder. 
  
 SECTION 12. SUPPLEMENTS AND AMENDMENTS. 
  
 (a) The Warrant Agent may, without the consent or concurrence of the Holders
of the Warrants, by supplemental agreement or otherwise, join with the Company in making any changes or corrections in this Agreement that (i) are required to cure any ambiguity or to correct any defect or inconsistent provision or clerical omission
or mistake or manifest error 
  

 39 

 herein contained, provided that such changes or corrections do not and will not adversely affect, alter or change the
rights of the Holders of Warrants, (ii) add to the covenants and agreements of the Company in this Agreement further covenants and agreements of the Company thereafter to be observed, or surrender any rights or power reserved to or conferred upon
the Company in this Agreement, provided that such changes or corrections do not and will not adversely affect, alter or change the rights of the Holders of Warrants, or (iii) will not, in the good faith opinion of the Board of Directors, as
evidenced by a resolution thereof, adversely affect, alter or change the rights of the Holders of Warrants in any material respect. Amendments or supplements that do not meet the requirements of the preceding sentence shall require the written
consent of the Holders of a majority of the then outstanding Warrants; provided, however, that the consent of each Holder is required for any amendment or supplement pursuant to which the Exercise Price would be increased or the number of shares of
Series C Preferred Stock purchasable upon exercise of Warrants would be decreased (other than pursuant to adjustments as provided in Section 3(a) or Section 7). 
  

(b) So long as any Warrants are outstanding and held by the Required Initial Holders, prior to amending the Series A Warrant Agreement, the Series B
Warrant Agreement or the Series C Warrant Agreement in such a manner as to provide the Holders of the Series A Warrants, the Series B Warrants or the Series C Warrants, as the case may be, with rights in addition or superior to those provided to the
Holders of the Warrants under this Agreement, the Company shall give written notice of any such proposed amendment (the “Proposed Amendment”), which shall include the text of the Proposed Amendment, to the
Required Initial Holders (with a copy to the Warrant Agent) and shall offer to the Required Initial Holders to amend this Agreement (subject to any consent requirements imposed by this Agreement) so as to 
  

 40 

 provide the Holders of the Warrants with rights no less favorable than the rights to be provided to the Holders of the
Series A Warrants, the Series B Warrants and the Series C Warrants, as the case may be, in the Proposed Amendment. If, within ten Business Days after their receipt of such written notice from the Company, the Required Initial Holders shall give
written notice to the Company (with a copy to the Warrant Agent) that they seek to have this Agreement amended to provide the Holders of the Warrants with such rights, the Company shall not amend the Series A Warrant Agreement, the Series B Warrant
Agreement or the Series C Warrant Agreement, as the case may be, to provide for such rights unless, concurrently with, or immediately prior to, the effectiveness of the Proposed Amendment, the Company shall amend this Agreement to provide such
rights to the Holders of the Warrants. If within the period of ten Business Days described in the immediately preceding sentence, the Required Initial Holders do not so provide notice to the Company that they seek to have this Agreement so amended,
or if the Holders of the Warrants do not approve and consent to such an amendment to this Agreement, the Company shall be deemed to have complied with this Section 12(b) with respect to the Proposed Amendment, and the Company shall then have the
right to amend the Series A Warrant Agreement, the Series B Warrant Agreement or the Series C Warrant Agreement, as the case may be, as provided in the Proposed Amendment without so amending this Agreement. In no event shall the failure of the
Required Initial Holders to seek to have this Agreement amended under this Section 12(b) with respect to any Proposed Amendment affect the applicability of this Section 12(b) with respect to any subsequent Proposed Amendment. Any written notice
required to be given by the Company or the Required Initial Holders pursuant to this Section 12(b) shall be given in the manner, and with the effect, provided in Section 3(f). 
  

 41 

 SECTION 13. SUCCESSORS. 
  

All the covenants and provisions of this Agreement by or for the benefit of the Company or the Warrant Agent shall bind and inure to the benefit of
their respective successors and assigns hereunder; provided that, except as otherwise specifically provided in this Agreement, neither the Company nor the Warrant Agent may assign any of its rights or obligations hereunder (other than any such
assignment by operation of law). 
  
 SECTION 14. TERMINATION. 

 
 This Agreement shall terminate at 5:00 p.m., New York City time, on the
Expiration Date. Notwithstanding the foregoing, this Agreement shall terminate on any earlier date if all Warrants have been exercised. The provisions of Sections, 2.3, 9 and 10 shall survive such termination. 
  
 SECTION 15. CERTAIN DEFINITIONS. 
  
 As used in this Agreement, the following terms shall have the following
respective meanings: 
  
 “Affiliate” has
the meaning set forth in Rule 12b-2 under the Securities Exchange Act of 1934, as amended. 
  
 “Agreement” has the meaning specified in the preamble hereto. 
  
 “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial interests in any Global Warrant, the
rules and procedures of the Depositary that apply to such transfer or exchange. 
  
 “Beneficially own” and “beneficial owner” have the same meaning as in Rule 13d-3 under the Securities Exchange Act of 1934, as amended. 
  

 42 

 “Board Designees” means individuals whose nomination for election, appointment or
election as directors of the Company is effectuated pursuant to (i) the Governance Agreement or (ii) the Series A Certificate of Designation or the Series B Certificate of Designation. 
  
 “Board of Directors” means the Board of Directors of the Company. 
  
 “Business Day” means any day other than a Saturday, a
Sunday or a day on which banking institutions in New Jersey or Georgia are authorized by law, regulation or executive order to remain closed. 
  
 “Capital Stock” means, with respect to any Person, any and all shares, interests, participations, rights or other equivalents
(however designated, whether voting or non-voting) in the equity of such Person, whether outstanding on the Issue Date or issued thereafter, including, without limitation, all common stock and Preferred Stock. 
  
 “Change of Control” means the occurrence on any date
after the Issue Date of any of the following: (i) a “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities Exchange Act of 1934, as amended) becomes the beneficial owner of more than 35% of the
total voting power of the Voting Stock on a Fully Diluted Basis and such ownership represents a greater percentage of the total voting power of the Voting Stock, on a Fully Diluted Basis, than the percentage of the total voting power of the Voting
Stock, on a Fully Diluted Basis, beneficially owned by the Existing Stockholders on such date; or (ii) individuals who on the Issue Date constituted the Board of Directors (together with any new directors whose appointment by the Board of Directors
or whose nomination by the Board of Directors for election by the Company’s stockholders was approved by a vote of at least a majority of the members of the Board of Directors then in office who either were members of the Board of 

 

 43 

 Directors on the Issue Date or whose appointment or nomination for election was previously so approved) cease for any
reason to constitute a majority of the members of the Board of Directors then in office; or (iii) the sale or transfer of all or substantially all of the Company’s assets, as determined in accordance with Delaware law. For purposes of clause
(ii) of this definition, all Board Designees shall be deemed to be members of the Board of Directors whose appointment or nomination for election was approved in the manner specified in clause (ii). 
  
 “Closing Price” means, with respect to the Common
Stock, on any date, (i) the last sales price on the NASDAQ or the OTC Bulletin Board or the principal securities exchange or other securities exchange or other securities market on which the Common Stock is then traded, or (ii) if the Common Stock
is so traded, but not so reported, the average of the last bid and ask prices, as those prices are reported on the NASDAQ or the OTC Bulletin Board or the principal securities exchange or other securities exchange or other securities market on which
the Common Stock is then traded, or (iii) if the Common Stock is not listed or authorized for trading on the NASDAQ or the OTC Bulletin Board or any securities exchange or comparable securities market, the average of the closing bid and ask prices
as furnished by two members of the National Association of Securities Dealers, Inc. selected from time to time by the Board of Directors for that purpose. If the Common Stock is not listed and traded in any manner that the quotations referred to
above are available for the period required hereunder, the Closing Price per share shall be deemed to be the fair value per share of such Common Stock as determined by the Board of Directors. 
  
 “Common Stock” means the Common Stock, par value $.01
per share, of the Company. 
  
 “Common Stock Purchase
Election” has the meaning specified in Section 3(b). 
  

 44 

 “Company” has the meaning specified in the preamble hereof. 
  
 “Consolidated” means to the consolidation of accounts
in accordance with GAAP. 
  
 “Conversion
Rate” mean the “Conversion Rate” as defined in, and as in effect under, the Series C Certificate of Designation. 
  
 “Convertible Securities” means securities convertible into or exchangeable for Series C Preferred Stock. 
  
 “Definitive Warrants” has the meaning specified in
Section 2.1(b). 
  
 “Depositary” means,
with respect to the Warrants issuable or issued in whole or in part in global form, the Person specified in Section 2.3 as the Depositary with respect to the Warrants, and any and all successors thereto appointed as Depositary hereunder. 

 
 “DTC” has the meaning specified in Section 2.3.

  
 “EBITDA” means, for the Company for
any period, the sum, determined on a Consolidated basis, without duplication, of (i) net income (or net loss) after eliminating extraordinary and/or non-recurring items, determined in a manner consistent with the determination thereof pursuant to
the Securities Purchase Agreement, (ii) interest expense, (iii) income tax expense, (iv) depreciation expense, (v) amortization expense, (vi) the aggregate of all non-cash items included in arriving at net income in clause (i) above (other than any
such non-cash item to the extent it represents an accrual of or reserve for cash expenditures for any future period or a write-down or write-off of a right to payment), (vii) special consulting fees, and other charges incurred pursuant to Statement
of Financial Accounting Standard No. 146, all as set forth on Schedule I to this Agreement, and (viii) asset impairment charges, in each case determined in accordance with GAAP. 
  

 45 

 “Equity Interests” means, with respect to any Person, shares of capital stock of
(or other ownership or profit interests in) such Person, warrants, options or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or profit interests in) such Person, securities
convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or other acquisition from such Person of such shares (or such other interests),
and other ownership or profit interests in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are
authorized or otherwise existing on any date of determination. 
  
 “Exchange Agreement” means the Exchange Agreement in substantially the form delivered by Tennenbaum Capital Partners, LLC to the Company on the Issue Date. 
  
 “Exercise Period” has the meaning specified in
Section 3(a). 
  
 “Exercise Price Adjustment
Event” means any event specified in Section 7 resulting in an adjustment of the Exercise Price. 
  
 “Exercise Price” has the meaning specified in Section 3(a). 
  
 “Existing Stockholders” means the WCAS Securityholders and their Affiliates.  
  
 “Expiration Date” has the meaning specified in
Section 3(a). 
  
 “Fully Diluted Basis”
means, as of any date of determination, the sum of (i) the number of shares of Voting Stock outstanding as of such date of determination plus (ii) the number of shares of Voting Stock issuable upon the exercise, conversion or exchange of all
then-outstanding warrants, options, convertible Capital Stock or indebtedness, exchangeable Capital Stock or indebtedness, or other rights exercisable for or convertible or exchangeable into, 
  

 46 

 directly or indirectly, shares of Voting Stock, whether at the time of issue or upon the passage of time or upon the
occurrence of some future event, and whether or not in the money as of such date of determination. 
  
 “Fundamental Change” means any transaction or event, including, without limitation, any merger, consolidation, sale, conveyance,
lease, exchange or transfer of assets, tender or exchange offer, reclassification (including any such reclassification in connection with a consolidation or merger in which the Company is the surviving corporation), capital reorganization,
compulsory share exchange or liquidation, in each case in which all or substantially all outstanding shares of the Common Stock, or all or substantially all of the assets or the property of the Company, are converted into or exchanged for Capital
Stock (of the Company or another issuer) or other securities, cash or other property. 
  
 “GAAP” means generally accepted accounting principles in the United States of America as in effect from time to time. 
  
 “Global Warrants” means, individually and collectively, each of the Restricted Global Warrants and
the Unrestricted Global Warrants, substantially in the form of Exhibit A hereto, issued in accordance with Sections 2.1(b) and 10. 
  
 “Global Warrant Legend” means the legend set forth in Section 10.1(c)(ii), which is required to be placed on all Global Warrants
issued under this Warrant Agreement. 
  
 “Governance
Agreement” means the Amended and Restated Governance Agreement, dated as of July 26, 2005, among the Company and the securityholders of the Company listed on the signature pages thereto, as amended from time to time. 
  
 “Holder” means a Person who is listed as the record
owner of (i) Warrants, (ii) the Warrant Shares, (iii) shares of Common Stock issued upon the exercise or conversion of 
  

 47 

 the Warrants or (iv) any other securities issued or issuable with respect to the Warrants, the Warrant Shares or such
shares of Common Stock by way of stock dividend or stock split or in connection with a combination of shares, recapitalization, merger, consolidation or other reorganization or otherwise. 
  
 “Initial Exercise Date” means the earliest to occur of (i) June 30, 2007, (ii) the date on which
there shall occur a Change of Control and (iii) the first date on which there shall occur a WCAS Liquidity Event, provided that no Warrant shall be exercisable prior to the Series C Preferred Stock Certificate Date. 
  
 “Initial Holder” means any Holder of
Warrants on the Issue Date. 
  
 “Issue
Date” means July 26, 2005. 
  
 “Liens” means liens and charges other than liens and charges arising under (i) any Transaction Document, (ii) any other agreement entered into between the Company and any Holder of a Warrant from time to time or
(iii) any other agreement to which the Company is not a party. 
  
 “Liquidation Event” means a liquidation, dissolution or winding up of the Company, whether voluntary or involuntary. 
  
 “Liquidation Preference” means the “Liquidation Preference” as defined in, and as in effect under, the Series C
Certificate of Designation. 
  
 “LTM
EBITDA” has the meaning specified in Section 3(a). 
  
 “NASDAQ” means The NASDAQ Stock Market, Inc. and shall refer to the NASDAQ National Market or the NASDAQ SmallCap Market, as the case may be. 
  
 “NMS” has the meaning specified in Section 6. 
  
 “Officer” means, with respect to any Person, the
Chairman of the Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary or any Vice-President of such Person. 
  

 48 

 “Options” means warrants, rights or options, whether or not immediately
exercisable, to purchase Series C Preferred Stock or Convertible Securities. 
  
 “Permitted Transferee” means, with respect to any WCAS Securityholder and any Permitted Transferee of any WCAS Securityholder, (i) any other WCAS Securityholder, (ii) any direct or indirect
wholly-owned subsidiary of any such WCAS Securityholder, (iii) in connection with a Transfer by any WCAS Securityholder to its partners, members or shareholders for no consideration pro rata based on their respective percentage interests in such
WCAS Securityholder, which Transfer is effected in accordance with the terms of the partnership agreement or other organizational document of such Holder, such partners, members or shareholders of such WCAS Securityholder, (iv) the heirs, executors,
administrators, testamentary trustees, legatees or beneficiaries of such WCAS Securityholder or Permitted Transferee of such WCAS Securityholder and (v) a trust, corporation, partnership, limited liability company or other entity substantially all
of the economic interests of which are held by or for the benefit of such WCAS Securityholder, a Permitted Transferee of such WCAS Securityholder or the spouse or children (whether by birth or adoption) of such WCAS Securityholder or such Permitted
Transferee. 
  
 “Person” means any
individual, corporation, partnership, limited liability company, joint venture, association, joint-stock company, trust, unincorporated organization or government or any agency or political subdivision thereof, including any subdivision or ongoing
business of any such entity or substantially all of the assets of any such entity, subdivision or business. 
  

 49 

 “Preferred Stock” means, with respect to any Person, any and all shares,
interests, participations or other equivalents (however designated, whether voting or non-voting) of such Person’s preferred or preference equity, whether outstanding on the Issue Date or issued thereafter, including, without limitation, with
respect to the Company, the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock. 
  
 “Private Placement Legend” means the legend set forth in Section 10.1(c)(i) to be placed on all Warrants issued under this Warrant
Agreement, except where otherwise permitted by the provisions of this Warrant Agreement. 
  
 “Proposed Amendment” has the meaning set forth in Section 12(b). 
  
 “Related Entity” means, with respect to any Person, (i) if such Person is an “ultimate parent entity,” as defined in the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended and the regulations promulgated thereunder, each direct or indirect subsidiary of such Person and (ii) if such Person is not an “ultimate parent entity,” as defined in such
Act and regulations, each ultimate parent entity (as so defined) of such Person and each other Person which is a direct or indirect subsidiary of any such ultimate parent entity. 
  
 “Required Initial Holders” means the Initial Holders, so long as the Initial Holders
are the beneficial and record owners, as of any date of determination, of a majority of the Warrants outstanding on such date of determination. 
  
 “Restricted Definitive Warrant” means a Definitive Warrant bearing the Private Placement Legend. 
  
 “Restricted Global Warrant” means a Global Warrant
bearing the Private Placement Legend. 
  

 50 

 “Restricted Warrant” means a Restricted Global Warrant or a Restricted Definitive
Warrant, as the case may be. 
  
 “Restricted Warrant
Shares” means Warrant Shares issued or issuable upon exercise of a Restricted Warrant. 
  
 “Securities Act” has the meaning specified in Section 3(a). 
  
 “Securities Purchase Agreement” means the Securities Purchase Agreement dated as of July 26, 2005,
as amended from time to time, among the Company and the other parties listed on the signature pages thereof. 
  
 “Series A Certificate of Designation” means the Certificate of Designation of the Powers, Preferences and Relative, Participating,
Optional and Other Special Rights of 8% Series A Convertible Redeemable Preferred Stock and Qualifications, Limitations and Restrictions Thereof, as amended from time to time unless otherwise specified in this Agreement. 
  
 “Series A Warrant Agreement” means the Warrant
Agreement, dated as of October 29, 2002, between the Company and Mellon Investor Services LLC, as Warrant Agent, as amended from time to time (so long as no amendment to such Warrant Agreement after the Issue Date shall increase the number of
warrants issuable pursuant thereto). 
  
 “Series A
Warrants” means the warrants to purchase Common Stock issued by the Company pursuant to the Series A Warrant Agreement; provided that such warrants have the same exercise expiration date and (subject to adjustments pursuant to
antidilution provisions of the Series A Warrant Agreement) the same exercise price as the warrants issued pursuant to the Series A Warrant Agreement which are outstanding on the Issue Date. 
  
 “Series B Certificate of Designation” means the
Certificate of Designation of the Powers, Preferences and Relative, Participating, Optional and Other Special Rights of 8% 
  

 51 

 Series B Convertible Redeemable Preferred Stock and Qualifications, Limitations and Restrictions Thereof, as amended from
time to time unless otherwise specified in this Agreement. 
  
 “Series B Preferred Stock” means the 8% Series B Convertible Redeemable Preferred Stock of the Company authorized in the Series B Certificate of Designation. 
  
 “Series B Warrant Agreement” means the Warrant
Agreement, dated as of October 6, 2003, between the Company and Mellon Investor Services LLC, as Warrant Agent, as amended from time to time (so long as no amendment to such Warrant Agreement after the Issue Date shall increase the number of
warrants issuable pursuant thereto). 
  
 “Series B
Warrants” means the warrants to purchase Common Stock issued by the Company pursuant to the Series B Warrant Agreement; provided that such warrants have the same exercise expiration date and (subject to adjustments pursuant to
antidilution provisions of the Series B Warrant Agreement) the same exercise price as the warrants issued pursuant to the Series B Warrant Agreement which are outstanding on the Issue Date. 
  
 “Series C Certificate of Designation” means the
Certificate of Designation of the Powers, Preferences and Relative, Participating, Optional and Other Special Rights of 8% Series C Convertible Redeemable Preferred Stock and Qualifications, Limitations and Restrictions Thereof, as amended from time
to time unless otherwise specified in this Agreement. 
  
 “Series C Preferred Dividends” means the Preferred Dividends as defined in, and payable pursuant to, the Series C Certificate of Designation. 
  
 “Series C Preferred Stock” means the 8% Series C Convertible Redeemable Preferred Stock of the
Company authorized in the Series C Certificate of Designation. 
  

 52 

 “Series C Preferred Stock Certificate Date” means the date and time on which the
Series C Certificate of Designation is first filed with the Secretary of State of the State of Delaware. 
  
 “Series C Preferred Stock Exercise Amount” means the number of shares of Series C Preferred Stock, determined as of the date of
exercise or conversion of any Warrant, which is equal to the sum of (x) one share of Series C Preferred Stock (the “Base Share”) plus (y) that fraction of one share of Series C Preferred Stock, rounded up to the nearest
one-ten thousandth (.0001) of a share, which is equal to the cumulative amount of all Series C Preferred Dividends that would have accrued pursuant to the Series C Certificate of Designation with respect to the Base Share if the Series C Preferred
Stock Certificate Date had occurred on the Issue Date and the Base Share had been issued and outstanding from the Issue Date through such date of exercise or conversion of such Warrant, assuming, for purposes of this definition, that such Series C
Preferred Dividends had been paid in shares of Series C Preferred Stock. 
  
 “Series C Warrant Agreement” means the Warrant Agreement, dated as of March 29, 2005, between the Company and Mellon Investor Services LLC, as Warrant Agent, as amended from time to time (so
long as no amendment to such Warrant Agreement after the Issue Date shall increase the number of warrants issuable pursuant thereto). 
  
 “Series C Warrants” means the warrants to purchase Common Stock issued by the Company pursuant to the Series C Warrant Agreement;
provided that such warrants have the same exercise expiration date and (subject to adjustments pursuant to antidilution provisions of the Series C Warrant Agreement) the same exercise price as the warrants issued pursuant to the Series C Warrant
Agreement which are outstanding on the Issue Date. 
  

 53 

 “Transaction Documents” means (i) the Governance Agreement, (ii) the Securities
Purchase Agreement, (iii) this Agreement and (iv) the Registration Rights Agreement, dated as of July 26, 2005, as amended from time to time, among the Company and the securityholders of the Company listed on the signature pages thereto. 

 
 “Transfer” has the meaning specified
in Section 10.1(b). 
  
 “Transferee” means
any Person that acquires assets of the Company in connection with any sale, conveyance, lease, exchange or transfer of such assets by the Company to or with such Person. 
  
 “Unrestricted Global Warrant” means a Global Warrant, substantially in the form of Exhibit A
attached hereto, that bears the Global Warrant Legend and that has the “Schedule of Exchanges of Interests in Global Warrant” attached thereto, and that is deposited with or on behalf of and registered in the name of the Depositary,
representing a series of Warrants that do not bear the Private Placement Legend. 
  
 “Voting Stock” means Capital Stock of any class or kind ordinarily having the power to vote for the election of members of the Board of Directors. For purposes of this definition, the Common
Stock shall be considered Voting Stock and the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock shall not be considered Voting Stock. 
  
 “Warrant” has the meaning specified in the recitals hereto. 
  
 “Warrant Agent” (i) has the meaning specified in the
first paragraph hereof and (ii) means any successor or replacement to Mellon Investor Services LLC as provided in Section 9. 
  
 “Warrant Agreement” has the meaning specified in the preamble hereof. 
  

 54 

 “Warrant Certificate” has the meaning specified in Section 2.1(a). 
  
 “Warrant Countersignature Order” has the meaning
specified in Section 2.2. 
  
 “Warrant
Registrar” has the meaning specified in Section 2.3. 
  
 “Warrants” has the meaning specified in the recitals hereto. 
  
 “Warrant Shares” has the meaning specified in the recitals hereto. 
  
 ‘WCAS Liquidity Event’ means any Transfer of any Equity Interests in the Company by any WCAS Securityholder (other than any
Transfer by such WCAS Securityholder to its Permitted Transferees) from and after the date of this Agreement which, when aggregated with all Transfers by all WCAS Securityholders (other than Transfers by WCAS Securityholders to their Permitted
Transferees) from and after the date of this Agreement, would result either in (i) aggregate cash proceeds to the WCAS Securityholders in excess of $5,000,000 or (ii) total Transfers by the WCAS Securityholders of over 5,618,000 shares of Common
Stock, calculated on an as-converted, as-exercised basis (assuming for this purpose the exercise, conversion or exchange of outstanding warrants, options, convertible Capital Stock or indebtedness, exchangeable Capital Stock or indebtedness, or
other rights exercisable for or convertible or exchangeable into, directly or indirectly, shares of Common Stock), as such number of shares of Common Stock may be proportionately adjusted in connection with any stock split, stock dividend, reverse
stock split or other combination, reclassification or other similar event affecting the Common Stock. 
  
 “WCAS Securityholders” means, collectively, (i) WCAS Capital Partners III, L.P., (ii) Welsh, Carson, Anderson & Stowe
VIII, L.P., (iii) WCAS Information Partners, L.P., (iv) each of the individual investors and trusts that executed the Governance Agreement as “WCAS Securityholders,” (v) the Affiliates of any of the Persons referred to in clauses (i),
(ii), (iii) and (iv) above, (vi) the related Persons of any of the Persons referred to in clauses (i), (ii), (iii) and (iv) above and (vii) the WCAS Securityholder Permitted Transferees. 
  

 55 

 “WCAS Securityholder Permitted Transferees” means the individuals who are the
heirs, executors, administrators, testamentary trustees, legatees, beneficiaries, spouses or lineal descendants of any of the WCAS Securityholders who are natural Persons. 
  
 SECTION 16. WARRANT HOLDER NOT DEEMED A STOCKHOLDER. 
  
 Prior to the exercise of the Warrants, no Holder of a Warrant Certificate, as such, shall be entitled to any rights of a
stockholder of the Company, including, without limitation, the right to vote or to consent to any action of the stockholders, to receive dividends or other distributions, to exercise any preemptive right or to receive any notice of meetings of
stockholders. 
  
 SECTION 17. GOVERNING LAW. 
  
 This Agreement and each Warrant Certificate issued hereunder shall be deemed
to be a contract made under the laws of the State of New York and for all purposes, except as otherwise expressly provided herein, shall be construed in accordance with the internal laws of the State of New York, without giving effect to principles
of conflict of laws to the extent the application of the laws of another jurisdiction would be required thereby. 
  
 SECTION 18. BENEFITS OF THIS AGREEMENT. 
  
 Nothing in this Agreement is intended or shall be construed to give to any Person other than the Company and the Warrant Agent and their respective
successors and assigns and the registered holders of Warrants any legal or equitable right, remedy or claim under this Agreement. This Agreement shall be for the sole and exclusive benefit of the Company and the Warrant Agent and their respective
successors and assigns and the registered holders of Warrants. 
  

 56 

 SECTION 19. COUNTERPARTS. 
  
 This Agreement may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed
to be an original, and all such counterparts shall together constitute but one and the same instrument. 
  
 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed, as of the day and year first above written. 
  

			
	 ITC^DELTACOM, INC.

		
	 By:
	 	 /s/ J. Thomas Mullis

	 Name:
	 	J. Thomas Mullis
	 Title:
	 	Senior Vice President-Legal
	 	 	and Regulatory
	
	 MELLON INVESTOR SERVICES LLC

	 as Warrant Agent

		
	 By:
	 	 /s/ Judy Hsu

	 Name:
	 	Judy Hsu
	 Title:
	 	Vice President

  

 57 

 EXHIBIT A 
  

Form of Warrant Certificate 
  
 [Face] 
  
 [THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES MAY NOT BE SOLD, PLEDGED, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN A TRANSACTION WHICH IS
EXEMPT UNDER THE PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR IN A TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS.1 
  
 [THIS GLOBAL WARRANT IS HELD BY THE DEPOSITARY (AS DEFINED IN THE WARRANT AGREEMENT GOVERNING THIS WARRANT) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF
THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE WARRANT AGENT MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED BY THE DEPOSITARY IN ORDER FOR IT TO ACCEPT THE WARRANTS FOR ITS
BOOK-ENTRY SETTLEMENT SYSTEM, (II) THIS GLOBAL WARRANT MAY BE DELIVERED TO THE WARRANT AGENT FOR CANCELLATION PURSUANT TO SECTION 10.4 OF THE WARRANT AGREEMENT AND (III) THIS GLOBAL WARRANT 
  

	1	This paragraph is to be included in Restricted Global Warrants and Restricted Definitive Warrants. 

  

 A-1 

 MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY ONLY WITH THE PRIOR WRITTEN CONSENT OF ITC^DELTACOM, INC.]2 
  
 [THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN LIMITATIONS ON TRANSFER SET FORTH IN AN AGREEMENT DATED AS OF JULY 26, 2005, AS
AMENDED FROM TIME TO TIME, AMONG ITC^DELTACOM, INC. AND THE OTHER PARTIES THERETO. A COPY OF SUCH AGREEMENT IS ON FILE WITH THE SECRETARY OF ITC^DELTACOM, INC. EXCEPT FOR A DISPOSITION OF SECURITIES PERMITTED BY THE PROVISIONS OF ARTICLE II OF SUCH
AGREEMENT IF THE PROVISIONS OF SUCH ARTICLE ARE THEN IN EFFECT, SUCH TRANSFER LIMITATIONS SHALL BE APPLICABLE TO ANY DISPOSITION OF THESE SECURITIES AND THIS LEGEND SHALL BE STAMPED OR OTHERWISE IMPRINTED ON ANY CERTIFICATE EVIDENCING THESE
SECURITIES.] 3 
  
 No.                  Warrants 
  
 Warrant Certificate 
  
 ITC^DELTACOM, INC. 
  
 This Warrant Certificate certifies that
            , or its registered assigns, is the registered holder of Warrants expiring July 1, 2009 (the “Warrants”) to purchase 8% Series C Convertible
Redeemable Preferred Stock, par value $.01 per share (the “Series C Preferred Stock”), of ITC^DeltaCom, Inc., a corporation organized under the laws of the State of Delaware (the “Company”). Each
Warrant entitles the registered holder upon exercise at any time from the Initial Exercise Date specified in the Warrant Agreement referred to on the reverse hereof (the 
  

	2	This paragraph is to be included only if the Warrant is in global form. 

	3	This paragraph is to be included only if the agreement referred to therein shall be in effect. 

  

 A-2 

 “Initial Exercise Date”) until immediately prior to 5:00 p.m., New York City time, on July 1,
2009, to receive from the Company fully paid and non-assessable shares of Series C Preferred Stock (collectively, the “Warrant Shares”) at the initial exercise price of $0.010 (the “Exercise Price”)
payable upon surrender of this Warrant Certificate and payment, subject to the third paragraph on the reverse side hereof, of the Exercise Price at the office or agency of the Warrant Agent, but only subject to the conditions set forth herein and in
the Warrant Agreement. Each Warrant shall be exercisable for the number of shares of Series C Preferred Stock equal to the Series C Preferred Stock Exercise Amount. The Exercise Price is subject to adjustment as of the Initial Exercise Date and the
Exercise Price and the number of Warrant Shares issuable upon exercise of the Warrants are subject to adjustment upon the occurrence of certain events set forth in the Warrant Agreement. 
  
 Each Warrant entitles the registered holder to receive upon exercise of such Warrant, in lieu of shares of Series C
Preferred Stock, fully paid and non-assessable shares of Common Stock upon the terms and conditions set forth in this Warrant Certificate and the Warrant Agreement. 
  
 No Warrant may be exercised on or after 5:00 p.m., New York City time, on July 1, 2009, and to the extent not exercised by
such time such Warrant shall become void. 
  
 Reference is hereby
made to the further provisions of this Warrant Certificate set forth on the reverse hereof, and such further provisions shall for all purposes have the same effect as though fully set forth at this place. 
  
 This Warrant Certificate shall not be valid unless countersigned by the
Warrant Agent, as such term is used in the Warrant Agreement. 
  
 This Warrant Certificate shall be governed by and construed in accordance with the internal laws of the State of New York. 
  

 A-3 

 IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be signed below.

  
 Dated:
[                    ], 20     
  

			
	 ITC^DELTACOM, INC.

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  
 Countersigned: 
  
 MELLON INVESTOR SERVICES LLC 
 as Warrant Agent 
  

			
	 By:
	 	  

	 	 	 Authorized Signature

  
  

 A-4 

 [Reverse of Warrant Certificate] 
  
 The Warrants evidenced by this Warrant Certificate are part of a duly authorized issue of Warrants expiring at 5:00 p.m.,
New York City time, on July 1, 2009 entitling the holder upon exercise to receive shares of Series C Preferred Stock, and are issued or to be issued pursuant to a Warrant Agreement dated as of July 26, 2005 (as amended from time to time, the
“Warrant Agreement”), duly executed and delivered by the Company to Mellon Investor Services LLC, as warrant agent (the “Warrant Agent”), which Warrant Agreement is hereby incorporated by reference in
and made a part of this instrument and is hereby referred to for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Warrant Agent, the Company and the holders (the words “holders” or
“holder” meaning the registered holders or registered holder) of the Warrants. A copy of the Warrant Agreement may be obtained by the holder hereof upon written request to the Company. Capitalized terms herein are used as defined in the
Warrant Agreement unless otherwise indicated. To the extent that any provision of this Warrant Certificate conflicts with the express provisions of the Warrant Agreement, the provisions of the Warrant Agreement shall govern and be controlling.

  
 Warrants may be exercised at any time and from time to time
during the period commencing on the Initial Exercise Date and ending immediately prior to 5:00 p.m., New York City time, on July 1, 2009; provided that either (i) a registration statement relating to the exercise of the Warrants and issuance of the
Warrant Shares (or, upon a Common Stock Purchase Election, shares of Common Stock) upon such exercise is then effective under the Securities Act of 1933, as amended (the “Securities Act”), or (ii) the exercise
of such Warrants and the issuance of the Warrant Shares (or upon a Common Stock Purchase Election, shares of Common Stock) upon such exercise is exempt from the registration requirements of the Securities Act and 
  

 A-5 

 such Warrant Shares (or shares of Common Stock, as the case may be) are qualified for sale or exempt from registration or
qualification under the applicable securities laws of the states in which the various holders of the Warrants or other Persons to whom it is proposed that such Warrant Shares (or shares of Common Stock, as the case may be) be issued upon exercise of
the Warrants reside. In order to exercise all or any of the Warrants represented by this Warrant Certificate, the holder must deliver to the Warrant Agent at its office set forth in Section 11 of the Warrant Agreement (i) this Warrant Certificate,
(ii) the applicable form of election to purchase on the reverse hereof duly and properly filled in and signed, which signature shall be guaranteed by a bank or trust company having an office or correspondent in the United States or a broker or
dealer which is a member of a registered securities exchange or the National Association of Securities Dealers, Inc, and (iii), subject to the following paragraph, payment to the Warrant Agent for the account of the Company of (a) the Exercise Price
for the number of Warrant Shares in respect of which such Warrants are then exercised, as provided in the Warrant Agreement, or (b) upon a Common Stock Purchase Election, the Exercise Price for the number of Warrant Shares that would have been
issuable upon exercise of such Warrants if the holder thereof had not made a Common Stock Purchase Election. 
  
 In lieu of making the payment of the Exercise Price in connection with the exercise of each Warrant (but in all other respects in accordance with the
exercise procedure set forth above, as such exercise procedure may be adjusted to reflect the conversion referred to herein), the holder of each Restricted Warrant may elect to convert such Restricted Warrant into shares of Series C Preferred Stock
by providing the Company and the Warrant Agent with joint written notification of such election, in which event the Company shall issue to such holder the 
  

 A-6 

 number of shares of Series C Preferred Stock calculated in accordance with the following formula: 
  
 X = (A - B) x C 
 A 
  
 where 
  

					
	X	 	=	 	the number of shares of Series C Preferred Stock issuable upon exercise pursuant to Section 3(f) of the Warrant Agreement
			
	A	 	=	 	the product of (x) the Conversion Rate and (y) the Closing Price, each calculated as of the Business Day immediately preceding the date on which the holder delivers the Warrant Certificate and
form of election to purchase to the Company pursuant to Section 3(b) of the Warrant Agreement
			
	B	 	=	 	the Exercise Price
			
	C	 	=	 	the number of shares of Series C Preferred Stock as to which such Restricted Warrant is being exercised pursuant to Section 3(a) of the Warrant Agreement

  
 If the foregoing calculation results
in a negative number, no shares of Series C Preferred Stock shall be issued upon conversion pursuant hereto. Notwithstanding any provision of this Warrant or the Warrant Agreement to the contrary, the holder of any Restricted Warrant may elect to
convert such Restricted Warrant into shares of Series C Preferred Stock as provided herein only if the Board of Directors shall determine that upon such conversion the Company shall receive consideration in an amount not less than the par value of
the shares of Series C Preferred Stock 
  

 A-7 

 issuable upon such conversion. Upon any Common Stock Purchase Election, the holder of each Restricted Warrant may elect
to convert such Restricted Warrant into shares of Common Stock by providing the Company and the Warrant Agent with joint written notification of such election, in which event the Company shall issue to such holder the number of shares of Common
Stock issuable under such Restricted Warrant as calculated after application of the foregoing formula in respect of the shares of Series C Preferred Stock for which such Restricted Warrant would have been exercisable if such holder had not made a
Common Stock Purchase Election. Notwithstanding any provision of this Warrant Certificate or the Warrant Agreement to the contrary, the holder of any Restricted Warrant may elect to convert such Restricted Warrant into shares of Common Stock as
provided herein only if the Board of Directors shall determine that upon such conversion the Company shall receive consideration in an amount not less than the par value of the shares of Common Stock issuable upon such conversion. Upon the request
of any holder in connection with the conversion of any Restricted Warrant, the Company shall execute and deliver to such holder an Exchange Agreement with respect to such conversion. 
  
 The Warrant Agreement provides that the Exercise Price set forth on the face hereof may be adjusted as of the Initial
Exercise Date and upon the occurrence of certain events. If the Exercise Price is adjusted pursuant to Section 7 of the Warrant Agreement, the Warrant Agreement provides that the number of shares of Series C Preferred Stock issuable upon the
exercise of each Warrant shall be adjusted. No fractions of a share of Series C Preferred Stock or Common Stock shall be issued upon the exercise of any Warrant, but the Company may, in its sole discretion, (i) round such fractional share up to the
nearest whole share or (ii) pay the cash value thereof determined as provided in the Warrant Agreement. 
  

 A-8 

 The Warrants shall be exercisable, at the election of the holder, either in full or from time to time in
part, provided that Warrants may not be exercised by the holder for an amount less than 10,000 Warrant Shares (or, upon a Common Stock Purchase Election, the number of shares of Common Stock into which 10,000 Warrant Shares would be convertible
pursuant to the Series C Certificate of Designation as of the date of exercise of such Warrants) unless such holder only owns, in the aggregate, such lesser amount. If fewer than all the Warrants represented by this Warrant Certificate are
exercised, this Warrant Certificate shall be surrendered and a new Warrant Certificate of the same tenor and for the number of Warrants which were not exercised shall be delivered to the person or persons entitled to receive such new Warrant
Certificate. 
  
 Upon due presentation for registration of
transfer of this Warrant Certificate at the office of the Warrant Agent a new Warrant Certificate or Warrant Certificates of like tenor and evidencing in the aggregate a like number of Warrants shall be issued to the transferee(s) in exchange for
this Warrant Certificate, subject to the limitations provided in the Warrant Agreement, without charge except for any tax or other governmental charge imposed in connection therewith. 
  
 The Company and the Warrant Agent may deem and treat the registered holder(s) thereof as the absolute owner(s) of this
Warrant Certificate (notwithstanding any notation of ownership or other writing hereon made by anyone), for the purpose of any exercise hereof, or any distribution to the holder(s) hereof, and for all other purposes, and neither the Company nor the
Warrant Agent shall be affected by any notice to the contrary. Neither the Warrants represented by this Warrant Certificate nor this Warrant Certificate shall entitle any holder hereof to any rights of a stockholder of the Company. 
  

 A-9 

 Form of Election to Purchase 
  
 (To Be Executed Upon Exercise of Warrant) 
  
 (Exercise for Series C Preferred Stock) 
  
 The undersigned hereby irrevocably elects to exercise the right, represented by this Warrant Certificate, to receive
                     shares of Series C Preferred Stock and herewith tenders payment for such shares to the order of ITC^DELTACOM, INC., in
the amount of $             in accordance with the terms hereof. If the undersigned hereby elects to convert the Warrants represented by this Warrant Certificate into shares of
Series C Preferred Stock as provided in this Warrant Certificate, tender of this Warrant Certificate in lieu of payment as aforesaid shall be deemed payment for such shares of Series C Preferred Stock in accordance with the terms hereof. The
undersigned requests that a certificate for such shares of Series C Preferred Stock be registered in the name of                     , whose
address is
                                        
and that such shares of Series C Preferred Stock be delivered to
                                        ,
whose address is
                                        .
If such number of shares of Series C Preferred Stock is less than all of the shares of Series C Preferred Stock purchasable hereunder, the undersigned requests that a new Warrant Certificate representing the remaining balance of such shares of
Series C Preferred Stock be registered in the name of
                                     
   , whose address is
                                        ,
and that such Warrant Certificate be delivered to
                                        
whose address is
                                        .

  

 A-10 

			
	 	 	

	 	 	Signature
		
	 Date:
	 	 
	 	 	  

	 	 	Signature Guaranteed

  
  

 A-11 

 Form of Election to Purchase 
  
 (To Be Executed Upon Exercise of Warrant) 
  
 (Common Stock Purchase Election) 
  
 The undersigned hereby makes a Common Stock Purchase Election and irrevocably elects to exercise the right, represented by this Warrant Certificate, to
receive the number of shares of Common Stock into which                      shares of Series C Preferred Stock represented by this Warrant
Certificate would be convertible as of the date hereof pursuant to the Series C Certificate of Designation, and herewith tenders payment for such shares to the order of ITC^DELTACOM, INC., in the amount of
$                     in accordance with the terms hereof. If the undersigned hereby elects to convert the Warrants represented by this
Warrant Certificate into shares of Common Stock as provided in this Warrant Certificate, tender of this Warrant Certificate in lieu of payment as aforesaid shall be deemed payment for such shares of Common Stock in accordance with the terms hereof.
The undersigned requests that a certificate for such shares of Common Stock be registered in the name of
                        , whose address is
                                        
and that such shares of Common Stock be delivered to
                                        ,
whose address is
                                        .
If such number of shares of Common Stock is less than all of the shares of Common Stock into which all of the shares of Series C Preferred Stock purchasable hereunder are convertible, the undersigned requests that a new Warrant Certificate
representing the remaining balance of such shares of Series C Preferred Stock be registered in the name of
                        , whose address is
                                        ,
and that such Warrant Certificate be delivered to
                                        
whose address is             . 
  

 A-12 

			
	 	 	

	 	 	Signature
		
	 Date:
	 	 
	 	 	  

	 	 	Signature Guaranteed

  
  

 A-13 

 SCHEDULE OF EXCHANGES OF INTERESTS IN GLOBAL WARRANT 
  
 The following exchanges of a part of this Global Warrant have been made: 
  

									
	 Date of
 Exchange

	 	 Amount of
 decrease in
 Number of
 Warrants in this
Global Warrant

	 	 Amount of
 increase in
 Number of
 Warrants in this
 Global Warrant

	  	 Number of
Warrants in this
Global Warrant
following such
decrease or
 increase

	  	 Signature of
 authorized
 officer of
 Warrant Agent

  

 A-14 

 EXHIBIT B 
  

Form of Investment Letter for Exercise 
  
 ITC^DeltaCom, Inc. 
 7037 Old Madison Pike 
 Suite 400 
 Huntsville, AL 35806 
  
 Ladies and Gentlemen: 
  
 The undersigned (the “Purchaser”) refers hereby to the Warrant Agreement, dated as of July 26, 2005, between
ITC^DeltaCom, Inc. (the “Company”) and Mellon Investor Services LLC, as Warrant Agent (as amended from time to time, the “Agreement”). Capitalized terms used in this letter and not defined herein have the meanings given to such
terms in the Agreement. 
  
 This letter is being furnished to the
Company pursuant to Section 3(c) of the Agreement. 
  
 The Warrant
Agent has received from a Holder of Warrants an executed election form for the purchase of the number of shares of Series C Preferred Common Stock or shares of Common Stock listed on Annex A hereto issuable upon the exercise of such Warrants
(such shares, together with the shares of Common Stock issuable upon conversion of such shares of Series C Preferred Stock, the “Warrant Shares”). In connection with its purchase of the Warrant Shares, the Purchaser confirms that:

  
 1. The Purchaser has received such information as it deems
necessary in order to make its investment decision in connection with its purchase of the Warrant Shares. 
  
 2. The Purchaser understands that the offer and sale of the Warrant Shares have not been registered under the Securities Act of 1933, as amended (the
“Securities Act”), or applicable state securities laws. The Purchaser understands that any Transfer of the Warrant Shares is subject to certain restrictions and conditions set forth in the Warrant Agreement and agrees to be bound by, and
not to Transfer the Warrant Shares except in compliance with, such restrictions and conditions and the Securities Act. 
  
 3. The Purchaser understands that, upon any proposed Transfer of any Warrant Shares, it will be required to furnish to the Warrant Agent and the Company
such certifications and other information as are specified in the Warrant Agreement or as the Warrant Agent and the Company may reasonably require to confirm that the proposed Transfer complies with the foregoing restrictions and conditions. The
Purchaser further understands that the Warrant Shares purchased by it will bear a legend to the foregoing effect and that the Company may place a “stop transfer order” with any transfer agent or registrar with respect to the Warrant
Shares. 
  
 4. The Purchaser is an “accredited investor”
(as defined in Rule 501(a) of Regulation D under the Securities Act) and has such knowledge and experience in financial and business 
  

 B-1 

 matters as to be capable of evaluating the merits and risks of its investment in the Warrant Shares, and it and any
account for which it is acting is each able to bear the economic risk of such an investment. 
  
 5. The Purchaser is acquiring the Warrant Shares purchased by it for its own account or for one or more accounts (each of which is an “accredited investor”) as to each of which the Purchaser exercises sole
investment discretion. 
  
 The Company and the Warrant Agent are
entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. 

 
 Very truly yours, 
  
 cc: Mellon Investor Services LLC, as Warrant Agent 
  
  

 B-2 

 EXHIBIT C 
  

Form of Investment Letter for Transfer 
  
 ITC^DeltaCom, Inc. 
 7037 Old Madison Pike 
 Suite 400 
 Huntsville, AL 35806 
  
 Ladies and Gentlemen: 
  
 The undersigned (the “Transferee”) refers hereby to the Warrant Agreement, dated as of July 26, 2005, between
ITC^DeltaCom, Inc. (the “Company”) and Mellon Investor Services LLC, as Warrant Agent (as amended from time to time, the “Agreement”). Capitalized terms used in this letter and not defined herein have the meanings given to such
terms in the Agreement. 
  
 This letter is being furnished to the
Company pursuant to Section 10.1(b) of the Agreement. 
  
 A Holder
of Warrants proposes to Transfer to the Transferee a beneficial interest in a Restricted Global Warrant or Restricted Definitive Warrant (collectively, the “Warrants”). In connection with its acquisition of the Warrants, the Transferee
confirms that: 
  
 1. The Transferee understands that the
Warrants and the shares of Series C Preferred Stock or other securities issuable upon exercise of the Warrants and conversion of the Series C Preferred Stock (collectively, the “Warrant Shares”) have not been registered under the
Securities Act of 1933, as amended (the “Securities Act”), or applicable state securities laws. The Transferee understands that any subsequent Transfer of the Warrants or the Warrant Shares is subject to certain restrictions and conditions
set forth in the Warrant Agreement and agrees to be bound by, and not to Transfer, the Warrants or the Warrant Shares except in compliance with, such restrictions and conditions and the Securities Act. 
  
 2. The Transferee understands that, upon any proposed Transfer of the
Warrants or the Warrant Shares, it will be required to furnish to the Warrant Agent and the Company such certifications and other information as are specified in the Warrant Agreement or as the Warrant Agent and the Company may reasonably require to
confirm that the proposed Transfer complies with the foregoing restrictions and conditions. The Transferee further understands that the Warrants and the Warrant Shares will bear a legend to the foregoing effect and that the Company may place a
“stop transfer order” with any transfer agent or registrar with respect to the Warrants and the Warrant Shares. 
  

 C-1 

 3. The Transferee is an “accredited investor” (as defined in Rule 501(a) of Regulation D under
the Securities Act) and has such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of its investment in the Warrants, and it and any account for which it is acting is each able to bear the
economic risk of such an investment. 
  
 4. The Transferee is
acquiring the Warrants purchased by it for its own account or for one or more accounts (each of which is an “accredited investor”) as to each of which the Transferee exercises sole investment discretion. 
  
 The Company and the Warrant Agent are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal proceedings or official inquiry with respect to the matters covered hereby. 
  
 Very truly yours, 
  
 cc: Mellon Investor Services LLC, as Warrant Agent 
  

 C-2EXHIBIT 10.1

 Exhibit 10.1 
  
 NOTE PURCHASE AGREEMENT 
  
 Dated as of July 26, 2005 
  
 by and among 
  
 ITC^DELTACOM, INC. 
  
 as Parent 
  
 INTERSTATE FIBERNET, INC.

  
 as Issuer 
  
 THE SUBSIDIARY GUARANTORS NAMED HEREIN 
  
 as Subsidiary Guarantors 
  
 THE NOTE PURCHASERS NAMED HEREIN 
  
 as Note Purchasers 
  
 TENNENBAUM CAPITAL PARTNERS, LLC 
  
 as Agent 
  
 and 
  
 TCP AGENCY SERVICES, LLC 
  
 as Collateral Agent 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page No.

	 ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	  	2
	 Section 1.01
	  	 Certain Defined Terms
	  	2
	 Section 1.02
	  	 Computation of Time Periods; Other Definitional Provisions
	  	25
	 Section 1.03
	  	 Accounting Terms
	  	26
	 ARTICLE II. NOTE PURCHASE
	  	26
	 Section 2.01
	  	 Authorization; Purchase and Sale of Notes.
	  	26
	 Section 2.02
	  	 Closing
	  	27
	 Section 2.03
	  	 Interest
	  	27
	 Section 2.04
	  	 Fees
	  	28
	 Section 2.05
	  	 Intentionally omitted.
	  	28
	 Section 2.06
	  	 Payments and Computations on the Notes.
	  	28
	 Section 2.07
	  	 Taxes
	  	29
	 Section 2.08
	  	 Sharing of Payments, Etc
	  	31
	 Section 2.09
	  	 Prepayments
	  	32
	 Section 2.10
	  	 Prepayment Price Schedule
	  	32
	 Section 2.11
	  	 Registration of Notes
	  	33
	 Section 2.12
	  	 Transfer and Exchange of Notes
	  	34
	 Section 2.13
	  	 Replacement of Notes
	  	34
	 ARTICLE III. CONDITIONS OF NOTE PURCHASE
	  	35
	 Section 3.01
	  	 Conditions Precedent to the Closing Date
	  	35
	 ARTICLE IV. REPRESENTATIONS AND WARRANTIES
	  	40
	 Section 4.01
	  	 Representations and Warranties of the Obligors.
	  	40
	 Section 4.02
	  	 Representations and Warranties of each Note Purchaser
	  	49
	 ARTICLE V. COVENANTS
	  	51
	 Section 5.01
	  	 Affirmative Covenants
	  	51
	 Section 5.02
	  	 Negative Covenants
	  	59
	 Section 5.03
	  	 Reporting Requirements
	  	69
	 ARTICLE VI. EVENTS OF DEFAULT
	  	74
	 Section 6.01
	  	 Events of Default
	  	74
	 ARTICLE VII. GUARANTY
	  	78
	 Section 7.01
	  	 Guaranty; Limitation of Liability
	  	78
	 Section 7.02
	  	 Guaranty Absolute
	  	79
	 Section 7.03
	  	 Waivers and Acknowledgments
	  	80
	 Section 7.04
	  	 Subrogation
	  	80
	 Section 7.05
	  	 Guaranty Supplements
	  	81
	 Section 7.06
	  	 Subordination
	  	81
	 Section 7.07
	  	 Continuing Guaranty; Assignments
	  	82
	 Section 7.08
	  	 Release of Guarantor
	  	82
	 ARTICLE VIII. ADDITIONAL POWERS OF AGENTS
	  	83
	 Section 8.01
	  	 Appointment
	  	83
	 Section 8.02
	  	 Rights of Agent
	  	84
	 Section 8.03
	  	 Administration of the Collateral
	  	84

  

 i 

					
	 Section 8.04
	  	 Application of Proceeds
	  	84
	 Section 8.05
	  	 Duties of Agents
	  	85
	 Section 8.06
	  	 Reliance by Agents
	  	86
	 Section 8.07
	  	 Appointment of Sub-Agents
	  	86
	 Section 8.08
	  	 Resignation of Agents
	  	86
	 Section 8.09
	  	 Note Purchaser Non-Reliance
	  	87
	 Section 8.10
	  	 Indemnification
	  	87
	 Section 8.11
	  	 Holders
	  	87
	 Section 8.12
	  	 Action by Agents
	  	88
	 ARTICLE IX. CERTAIN PAYMENTS
	  	88
	 Section 9.01
	  	 Pro Rata Treatment.
	  	88
	 Section 9.02
	  	 Certain Provisions Regarding Increased Costs
	  	88
	 Section 9.03
	  	 Note Purchaser Expenses
	  	89
	 ARTICLE X. MISCELLANEOUS
	  	90
	 Section 10.01
	  	 Amendments and Waivers, Etc
	  	90
	 Section 10.02
	  	 Notices, Etc
	  	91
	 Section 10.03
	  	 No Waiver; Remedies
	  	92
	 Section 10.04
	  	 Costs and Expenses; Survival
	  	92
	 Section 10.05
	  	 Confidentiality
	  	93
	 Section 10.06
	  	 Severability
	  	94
	 Section 10.07
	  	 Construction
	  	94
	 Section 10.08
	  	 Counterparts
	  	94
	 Section 10.09
	  	 Governing Law
	  	94
	 Section 10.10
	  	 Waiver of Jury Trial
	  	95
	 Section 10.11
	  	 Usury Savings Clause
	  	95
	 Section 10.12
	  	 Right of Set-off
	  	96
	 Section 10.13
	  	 Marshalling; Payments Set Aside
	  	96
	 Section 10.14
	  	 Limitation of Liability
	  	96
	 Section 10.15
	  	 Submission to Jurisdiction; Waivers
	  	97
	 Section 10.16
	  	 Successors and Assigns
	  	97
	 Section 10.17
	  	 Indemnification
	  	97
	 Section 10.18
	  	 Survival of Representations and Warranties; Entire Agreement
	  	98
	 Section 10.19
	  	 Authorization for Intercreditor and Subordination Agreements
	  	99

  

 ii 

 SCHEDULES 
  

			
	 Schedule I
	  	Note Purchasers
	 Schedule II
	  	Subsidiary Guarantors
	 Schedule III
	  	Intentionally Omitted
	 Schedule IV
	  	Competitors
	 Schedule V
	  	Restructuring Charges
	 Schedule VI
	  	Events of Default
	 Schedule VII
	  	Asset Sales
	 Schedule 4.01(a)(ii)
	  	Pending Good Standing
	 Schedule 4.01(a)(iii)
	  	Pending Licenses, Permits and Other Approvals
	 Schedule 4.01(b)
	  	Subsidiaries
	 Schedule 4.01(d)
	  	Authorizations, Approvals, Actions, Notices and Filings
	 Schedule 4.01(f)
	  	Disclosed Litigation
	 Schedule 4.01(o)
	  	Exceptions to Material Adverse Effect/Change
	 Schedule 4.01(p)
	  	Plans, Multiemployer Plans and Welfare Plans
	 Schedule 4.01(r)
	  	Open Years; Unpaid Tax Liabilities; Adjusted Tax Bases
	 Schedule 4.01(t)
	  	Surviving Debt
	 Schedule 4.01(v)
	  	Liens
	 Schedule 4.01(w)
	  	Owned Real Property
	 Schedule 4.01(x)
	  	Leased Real Property
	 Schedule 4.01(y)
	  	Investments
	 Schedule 4.01(z)
	  	Intellectual Property
	 Schedule 4.01(aa)
	  	Material Contracts
	 Schedule 5.02(h)
	  	Affiliate Transactions

  
 EXHIBITS 
  

							
	 Exhibit A        
	  	 	  	-	  	 Form of Note

	 Exhibit B
	  	 	  	-	  	 Financial Covenants Certificate

	 Exhibit C
	  	 	  	-	  	 Form of Assignment and Acceptance

	 Exhibit D
	  	 	  	-	  	 Form of Security Agreement

	 Exhibit E
	  	 	  	-	  	 Form of Intercreditor and Subordination Agreement

	 Exhibit F
	  	 	  	-	  	 Form of Opinion of Counsel to the Obligors

	 Exhibit G
	  	 	  	-	  	 Form of Guaranty Supplement

	 Exhibit H
	  	 	  	-	  	 Form of Account Control Agreement

	 Exhibit I
	  	 	  	-	  	 Form of Solvency Certificate

  

 iii 

 NOTE PURCHASE AGREEMENT 
  
 This NOTE PURCHASE AGREEMENT is made and entered into as of July 26, 2005 (this “Agreement”), by and among
ITC^DeltaCom, Inc., a Delaware corporation (the “Parent”), Interstate FiberNet, Inc., a Delaware corporation (the “Issuer”), the subsidiary guarantors listed on the signature page hereof, the banks, financial
institutions and other institutional lenders listed on Schedule I hereto (the “Note Purchasers”), Tennenbaum Capital Partners, LLC, a Delaware limited liability company (“TCP”), as agent (together with any
successor agent appointed pursuant to Article VIII, the “Agent”) for the Note Purchasers, and TCP Agency Services, LLC, a Delaware limited liability company, as collateral agent (together with any successor collateral agent the
“Collateral Agent” and, together with the Agent, the “Agents”). 
  
 RECITALS: 
  
 WHEREAS, the Parent, the Issuer, the Subsidiary Guarantors, and the banks and financial institutions listed on the signature pages thereof as Lenders (the “Second Lien Lenders”) and General Electric Capital Corporation, as
administrative and collateral agent, entered into that certain Amended and Restated Credit Agreement, dated as of March 29, 2005 (the “Existing Second Lien Credit Agreement”); 
  
 WHEREAS, the Parent, the Issuer, the Subsidiary Guarantors thereunder, the
lenders from time to time party thereto and Wells Fargo Bank, N.A., as administrative agent and collateral agent, entered into that certain Third Amended and Restated Credit Agreement, dated as of March 29, 2005 (the “Third Amended ITCD
Credit Agreement”); 
  
 WHEREAS, the Parent, the Issuer,
the Subsidiary Guarantors, the lenders from time to time party thereto and WCAS (as defined below), as administrative agent and collateral agent, entered into that certain Credit Agreement, dated as of March 29, 2005 (the “Original Third
Lien Credit Agreement”); 
  
 WHEREAS, the parties hereto
desire to enter into this Agreement pursuant to which senior secured notes in the aggregate principal amount of $209,000,000 (as more clearly set forth in Section 2.01 hereof) (collectively, the “Notes”) shall be purchased by
the Note Purchasers, the proceeds from which are to be used to repay any and all amounts owing by the Obligors under the Third Amended ITCD Credit Agreement and for general working capital purposes; 
  
 WHEREAS, concurrently herewith, the Parent, the Issuer, the Subsidiary
Guarantors, certain Lenders (as defined in the Original Third Lien Credit Agreement) and certain of the Note Purchasers (collectively, the “New Third Lien Lenders”) are amending and restating the Original Third Lien Credit Agreement
(the “New Third Lien Securities Purchase Agreement”) pursuant to which the New Third Lien Lenders are purchasing (i) $30,000,000 in aggregate principal amount of newly-issued secured notes (the “New Third Lien
Notes”) issued by the Issuer and (ii) Warrants issued by the Issuer, the proceeds of such New Third Lien Notes and Warrants to be used by the Issuer for general working capital purposes; 

 WHEREAS, concurrently herewith, pursuant to that certain Exchange Agreement dated as of even date
herewith (the “Exchange Agreement”) by and among WCAS, the Parent, the Issuer and the Subsidiary Guarantors, the Existing Third Lien Notes are being exchanged for New Third Lien Notes in the aggregate principal amount equal to the
sum of (x) $20,000,000 plus (y) the aggregate amount of capitalized PIK interest on the Existing Third Lien Notes through the Closing Date; 
  
 WHEREAS, the Obligors have requested (a) the consent of the Second Lien Lenders (as defined below) to incur secured indebtedness pursuant to this
Agreement and (b) that the Second Lien Lenders agree to amend and restate the terms of the Existing Second Lien Credit Agreement pursuant to that certain Second Amended and Restated Credit Agreement, dated as of July 26, 2005 (the “Amended
Second Lien Credit Agreement”), by and among the Parent, the Issuer, the Subsidiary Guarantors, the Second Lien Lenders and the “Agents”, under, and as defined therein (the “Second Lien Agent”); 
  
 WHEREAS, subject to the continuation without interruption of the liens
created thereby, it is the intention of the parties that the Original Third Lien Credit Agreement be amended and restated as of Closing Date; and 
  
 WHEREAS, it is the intention of the parties that the obligations of the Parent and its Subsidiaries under the Third Amended ITCD Credit Agreement be
satisfied and paid in full from the proceeds of the Note Purchase (as defined below) and that, from and after the Closing Date, the Third Amended ITCD Credit Agreement shall be extinguished. 
  
 NOW, THEREFORE, in consideration of the foregoing and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
  
 ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS 
  
 Section 1.01 Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally
applicable to both the singular and plural forms of the terms defined): 
  
 “Account Control Agreement” has the meaning specified in Section 5.01(r). 
  
 “Additional Guarantor” has the meaning specified in Section 7.05. 
  
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled
by or is under common control with such Person or is a director or officer of such Person. For purposes of this definition, the term “control” (including the terms “controlling,” “controlled by” and “under common
control with”) of a Person means the possession, direct or indirect, of the power to vote 10% or more of the Voting Stock of such Person or to direct or cause the direction of the management and policies of such Person, whether through the
ownership of Voting Stock or Equity Interests, by contract or otherwise. 
  
 “Agent” has the meaning specified in the preamble of this Agreement. 
  

 2 

 “Agents” has the meaning specified in the preamble of this Agreement. 
  
 “Agreement” means this Note Purchase Agreement, dated as of
July 26, 2005, among the Parent, the Issuer, the Note Purchasers, the Subsidiary Guarantors and the Agent and Collateral Agent, as amended, replaced or refinanced from time to time. 
  
 “Agreement Value” means, for each Hedge Agreement, on any date of determination, an amount determined by
the Agent equal to: (a) in the case of a Hedge Agreement documented pursuant to the Master Agreement (Multicurrency-Cross Border) published by the International Swap and Derivatives Association, Inc. (the “Master Agreement”), the
amount, if any, that would be payable by any Obligor or any of its Subsidiaries to its counterparty to such Hedge Agreement, as if (i) such Hedge Agreement was being terminated early on such date of determination, (ii) such Obligor or Subsidiary was
the sole “Affected Party,” and (iii) the Agent was the sole party determining such payment amount (with the Agent making such determination pursuant to the provisions of the form of Master Agreement); or (b) in the case of a Hedge
Agreement traded on an exchange, the mark-to-market value of such Hedge Agreement, which shall be the unrealized loss on such Hedge Agreement to the Obligor or Subsidiary of an Obligor to such Hedge Agreement determined by the Agent based on the
settlement price of such Hedge Agreement on such date of determination; or (c) in all other cases, the mark-to-market value of such Hedge Agreement, which shall be the unrealized loss on such Hedge Agreement to the Obligor or Subsidiary of an
Obligor to such Hedge Agreement determined by the Agent as the amount, if any, by which (i) the present value of the future cash flows to be paid by such Obligor or Subsidiary exceeds (ii) the present value of the future cash flows to be received by
such Obligor or Subsidiary pursuant to such Hedge Agreement; capitalized terms used and not otherwise defined in this definition shall have the respective meanings set forth in the above described Master Agreement. 
  
 “Amended Second Lien Credit Agreement” has the meaning
specified in the recitals of the parties to this Agreement, as amended. 
  
 “Applicable Law” means all laws, rules and regulations applicable to a Person, its property or a transaction, as the case may be, including all applicable common law principles and all provisions of all applicable United
States federal, state, local and foreign constitutions, treatises, codes, statutes, rules, regulations, orders and ordinances of any Governmental Authority; and writs, orders, judgments, injunctions and decrees of all courts and arbitrators.

  
 “Applicable Lending Office” means, with
respect to each Note Purchaser, such Note Purchaser’s Principal Lending Office. 
  
 “Assigned Agreements” has the meaning specified in the Security Agreement. 
  
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Note Purchaser and an Eligible Assignee, substantially
in the form of Exhibit C hereto. 
  
 “Bankruptcy
Code” means title 11 of the United States Code, as amended. 
  
 “Benefit Plan Exchange Offer” means any transaction in which the Parent acquires and/or retires Equity Plan Securities in exchange for other Equity Plan Securities. 
  

 3 

 “Board Designees” means individuals whose nomination for election, appointment or
election as directors of the Parent is effectuated pursuant to (a) the Governance Agreement or (b) to the extent applicable from time to time, the Series A Certificate of Designation or the Series B Certificate of Designation. 
  
 “Business Day” means a day of the year on which banks are
not required or authorized by law to close in New York City. 
  
 “BTI” means BTI Telecom Corp., a North Carolina corporation. 
  
 “Capital Expenditures” means, for any Person for any period, the sum of, without duplication, (a) all expenditures made, directly or indirectly, by such Person or any of its Subsidiaries during such
period for equipment, capacity or dark fiber indefeasible rights of use (IRUs), fixed assets, real property or improvements, or for replacements or substitutions therefor or additions thereto, that have been or should be, in accordance with GAAP,
reflected as additions to property, plant or equipment on a Consolidated balance sheet of such Person or have a useful life of more than one year plus (b) the aggregate principal amount of all Debt (including Obligations under Capitalized Leases)
assumed or Incurred in connection with any such expenditures. For purposes of this definition, the purchase price of equipment that is purchased simultaneously with the trade-in of existing equipment or with insurance proceeds shall be included in
Capital Expenditures only to the extent of the gross amount of such purchase price less the credit granted by the seller of such equipment for the equipment being traded in at such time or the amount of such proceeds, as the case may be. 

 
 “Capitalized Leases” means all leases that have been or
should be, in accordance with GAAP, recorded as capitalized leases. 
  
 “Capital Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) in equity of such Person, whether outstanding on the
date of this Agreement or issued thereafter, including, without limitation, all Common Stock and Preferred Stock. 
  
 “Cash Equivalents” means any of the following, to the extent owned by the Parent or any of its Subsidiaries free and clear of all Liens
other than Liens created under the Collateral Documents, the Second Lien Loan Documents and the New Third Lien Documents, and having a maturity of not greater than 360 days from the date of issuance thereof: (a) readily marketable direct obligations
of the Government of the United States or any agency or instrumentality thereof or obligations unconditionally guaranteed by the full faith and credit of the Government of the United States; (b) insured certificates of deposit of or time deposits
with any commercial bank that is a Note Purchaser or a member of the Federal Reserve System, issues (or the parent of which issues) commercial paper rated as described in clause (c) below, is organized under the laws of the United States or any
State thereof and has combined capital and surplus of at least $1 billion; (c) commercial paper in an aggregate amount of no more than $160,000,000 per issuer outstanding at any time, issued by any corporation organized under the laws of any State
of the United States and rated at least “P-1” (or the then equivalent grade) by Moody’s Investors Service, Inc. or “A-1” (or the then equivalent grade) by Standard & Poor’s, a division of The McGraw-Hill Companies,
Inc.; or (d) obligations issued by any state of the United States of 
  

 4 

 America or any municipality or other political subdivision of any such state or any public instrumentality thereof
having, at the time of acquisition, the highest rating obtainable from any of Standard & Poor’s, a division of The McGraw-Hill Companies, Inc., Moody’s Investors Service, Inc. or Fitch Ratings, Inc., including, without limitation,
auction rate certificates. 
  
 “CERCLA” means the
Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended from time to time. 
  
 “CERCLIS” means the Comprehensive Environmental Response, Compensation and Liability Information System maintained by the U.S.
Environmental Protection Agency. 
  
 “Change of
Control” means the occurrence on any date after the Closing Date of any of the following: (a) a “person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Exchange Act) becomes the “beneficial
owner” (within the meaning of Rule 13d-3 of the SEC under the Exchange Act) of more than 35% of the total voting power of the Voting Stock of the Parent on a Fully Diluted Basis and such ownership represents a greater percentage of the total
voting power of the Voting Stock of the Parent, on a Fully Diluted Basis, than the percentage of the total voting power of the Voting Stock of the Parent, on a Fully Diluted Basis, beneficially owned (within the meaning of Rule 13d-3 of the SEC
under the Exchange Act) by the Existing Stockholders on such date; provided, however, that for purposes of calculating the percentage in clause (a) of this definition, any stock of the Parent issued or issuable upon exercise of the
Warrants or conversion of the Series C Preferred Stock shall be disregarded; or (b) individuals who on the Closing Date constitute the board of directors of the Parent (together with any new directors whose appointment by the board of directors of
the Parent or whose nomination by the board of directors of the Parent for election by the Parent’s stockholders was approved by a vote of at least a majority of the members of the board of directors then in office who either were members of
the board of directors on the Closing Date or whose appointment or nomination for election was previously so approved) cease for any reason to constitute a majority of the members of the board of directors then in office; or (c) the Parent shall
cease to own 100%, directly, of the Equity Interests of the Issuer and 100%, directly or indirectly, of the Equity Interests of the other Obligors. For purposes of clause (b) of this definition, all Board Designees shall be deemed to be members of
the board of directors of the Parent whose appointment or nomination for election was approved in the manner specified in clause (b). 
  
 “Chief Financial Officer” means, with respect to any Obligor, the officer of such Obligor designated by such Obligor as its chief
financial officer or, if there is no such officer designation, the officer of such Obligor designated by such Obligor as its principal accounting officer. 
  
 “Closing” has the meaning specified in Section 2.02. 
  
 “Closing Date” means the date on which the Closing occurs. 
  
 “Closing Date Mortgage Policies” has the meaning specified
in Section 3.01(b)(xii). 
  
 “Closing Date
Mortgaged Properties” has the meaning specified in Section 3.01(b)(xii). 
  

 5 

 “Closing Date Mortgages” has the meaning specified in Section 3.01(b)(xv).

  
 “Collateral” means all “Collateral”
referred to in the Collateral Documents and all other property that is or is intended to be subject to any Lien in favor of the Collateral Agent for the benefit of the Secured Parties. 
  
 “Collateral Account” has the meaning specified in the Security Agreement. 
  
 “Collateral Agent” has the meaning specified in the preamble
of this Agreement. 
  
 “Collateral Documents”
means the Security Agreement, the Intercreditor and Subordination Agreements, the Closing Date Mortgages, the Mortgages, and any other agreement that creates or purports to create a Lien in favor of the Collateral Agent for the benefit of the
Secured Parties. 
  
 “Commitment” means with
respect to any Note Purchaser at any time, the amount set forth for such Note Purchaser on Schedule I hereto. 
  
 “Common Stock” means, with respect to any Person, any and all shares, interests, participations or other equivalents (however designated,
whether voting or non-voting) of such Person’s equity, other than Preferred Stock of such Person, whether outstanding on the date of this Agreement or issued thereafter, including, without limitation, all series and classes of such common
stock. 
  
 “Competitor” shall mean any Person
identified on Schedule IV hereto (or any Affiliate thereof) or any other Person (or any Affiliate thereof) that engages primarily or as one of its principal activities in the business of providing competitive local exchange telecommunications
services to business customers. 
  
 “Confidential
Information” has the meaning specified in Section 10.05. 
  
 “Consolidated” refers to the consolidation of accounts in accordance with GAAP. 
  
 “Consolidated Debt” means the Debt of the Parent and its Subsidiaries. 
  
 “Consolidated Net Income” means, for any period, the net income (or loss) of the Issuer and
its Subsidiaries on a Consolidated basis for such period taken as a single accounting period determined in conformity with GAAP; provided that there shall be excluded (a) the income (or loss) of any Person (other than a Subsidiary of the
Issuer) in which any other Person (other than the Issuer or any of its Subsidiaries) has a joint interest, except to the extent of the amount of dividends or other distributions actually paid to the Issuer or any of its Subsidiaries by such Person
during such period, (b) the income (or loss) of any Person accrued prior to the date such Person becomes a Subsidiary of the Issuer or is merged into or consolidated with the Issuer or any of its Subsidiaries or the date on which such Person’s
assets are acquired by the Issuer or any of its Subsidiaries, (c) the income of any Subsidiary of the Issuer to the extent that the declaration or payment of dividends or similar distributions by that Subsidiary of such income is not at such time
permitted by operation of the terms of such Subsidiary’s charter or any agreement, instrument, judgment, decree, order, statute, rule or governmental regulation applicable to such Subsidiary, and (d) any after-tax gains or losses attributable
to asset sales or returned surplus assets of any Plan. 
  

 6 

 “Consolidated Net Worth” means, at any date of determination,
stockholders’ equity as set forth on the most recently available quarterly or annual consolidated balance sheet of the Parent and its Subsidiaries (which shall be as of a date not more than 90 days prior to the date of such computation), less
any amounts attributable to any equity security convertible into or exchangeable for Debt, the cost of treasury stock and the principal amount of any promissory notes receivable from the sale of the Capital Stock of the Parent or its direct or
indirect Subsidiaries, each item to be determined in conformity with GAAP (excluding the effects of foreign currency exchange adjustments under Financial Accounting Standards Board Statement of Financial Accounting Standards No. 52). 
  
 “Contingent Obligation” means, with respect to any Person,
any Obligation or arrangement of such Person to guarantee or intended to guarantee any Debt, leases, dividends or other payment Obligations (“primary obligations”) of any other Person (the “primary obligor”) in any
manner, whether directly or indirectly, including, without limitation, (a) the direct or indirect guarantee, endorsement (other than for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with
recourse by such Person of the Obligation of a primary obligor, (b) the Obligation to make take-or-pay or similar payments, if required, regardless of nonperformance by any other party or parties to an agreement or (c) any Obligation of such Person,
whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (A) for the purchase or payment of any such primary obligation or (B) to
maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, assets, securities or services primarily for the purpose of assuring the owner
of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof. The amount of any
Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made (or, if less, the maximum amount of such primary obligation for which
such Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform
thereunder), as determined by such Person in good faith. 
  
 “Conversion Shares” means the Common Stock or other securities issued or issuable upon conversion of the Series C Preferred Stock. 
  
 “Current Assets” of any Person means all assets of such Person that would, in accordance with GAAP, be classified as current assets of a
company conducting a business the same as or similar to that of such Person, after deducting adequate reserves in each case in which a reserve is proper in accordance with GAAP. 
  
 “Current Liabilities” of any Person means (a) all Debt of such Person that by its terms is payable on
demand or matures within one year after the date of determination (excluding any Debt renewable or extendible, at the option of such Person, to a date more than 
  

 7 

 one year from such date or arising under a revolving credit or similar agreement that obligates the lender or lenders to
extend credit during a period of more than one year from such date), (b) all amounts of Funded Debt of such Person required to be paid or prepaid within one year after such date and (c) all other items (including taxes accrued as estimated) that in
accordance with GAAP would be classified as current liabilities of such Person. 
  
 “Debt” of any Person means, at any time without duplication, (a) all indebtedness of such Person for borrowed money, (b) all Obligations of such Person for the deferred purchase price of property or
services (other than trade payables not overdue by more than 90 days incurred in the ordinary course of such Person’s business, unless such trade payables overdue by more than 90 days are contested in good faith by such Person), (c) all
Obligations of such Person evidenced by notes, bonds, debentures or other similar instruments, (d) all Obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by
such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all Obligations of such Person as lessee under Capitalized Leases, (f)
all Obligations of such Person under acceptance, letter of credit or similar facilities, (g) all Obligations of such Person to Redeem any Equity Interests in such Person or in any other Person, or to Redeem options, warrants or other rights to
purchase or otherwise acquire such Equity Interests, before the date which is six months after the Termination Date (provided, that if the exercise of the right to Redeem such Equity Interests or options, warrants or other rights is at the
option of such Person under the terms of such Equity Interests or otherwise, the date of such Person’s exercise, if any, of such right to Redeem shall be the date on which such Person shall first be deemed to have an Obligation to Redeem such
Equity Interests or options, warrants or other rights for purposes of this definition), valued in the case of Preferred Interests at the stated liquidation preference of such Preferred Interests plus accrued and unpaid dividends from time to time,
(h) all Obligations of such Person in respect of Hedge Agreements, valued at the Agreement Value thereof, (i) all Contingent Obligations of such Person and (j) all indebtedness and other payment Obligations referred to in clauses (a) through (i)
above of another Person secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property (including, without limitation, accounts and contract rights) owned by such Person, even
though such Person has not assumed or become liable for the payment of such indebtedness or other payment Obligations. Notwithstanding clause (g) of this definition, the Obligations referred to in such clause (g) as constituting
“Debt” shall not include Obligations of such Person to Redeem Equity Interests in such Person (or to Redeem options, warrants or other rights to purchase or otherwise acquire such Equity Interests) in exchange for, or out of the
proceeds of a substantially concurrent offering of, other Equity Interests (or options, warrants or other rights to purchase or otherwise acquire such other Equity Interests) in such Person, provided, that any Obligations of such Person to
Redeem such other Equity Interests (or to Redeem options, warrants or other rights to purchase or acquire such other Equity Interests) shall be subject to the provisions of such clause (g). 
  
 “Debt for Borrowed Money” of any Person means all items
that, in accordance with GAAP, would be classified as indebtedness on a Consolidated balance sheet of such Person; provided, however, notwithstanding the foregoing, “Debt for Borrowed Money” shall not include any trade
payables, any Preferred Interests (including, without limitation, with respect to the Obligors, the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock) or any dividends accrued or paid or payable with respect to
Preferred Interests. 
  

 8 

 “Default” means any Event of Default or any event that would constitute an Event of
Default but for the requirement that notice be given or time elapse or both. 
  
 “Default Interest” has the meaning specified in Section 2.03(b). 
  
 “Disclosed Litigation” has the meaning specified in Section 3.01(c). 
  
 “EBITDA” means, for any Person for any period, the sum, determined on a Consolidated basis, without
duplication, of (a) Consolidated Net Income (other than interest income determined in accordance with GAAP), (b) interest expense, (c) income tax expense, (d) depreciation expense, (e) amortization expense, (f) the aggregate of all non-cash items
included in arriving at Consolidated Net Income in clause (a) above (other than any such non-cash item to the extent it represents an accrual of or reserve for cash expenditures for any future period or a write-down or write-off of a right to
payment), (g) asset impairment charges, and (h) special consulting fees, and other charges incurred pursuant to Statement of Financial Accounting Standard No. 146, all as set forth on Schedule V hereto. Notwithstanding the foregoing and for purposes
of the computations of EBITDA with respect to the financial condition covenants set forth in Section 5.02(r), EBITDA for the Parent and its Subsidiaries for the fiscal quarter ending September 30, 2005 shall be equal to the quotient of (i)
the product of (x) EBITDA for the nine-month period then ended multiplied by (y) twelve, (ii) divided by nine; for fiscal quarters ending December 31, 2005 and thereafter, EBITDA for the Parent and its Subsidiaries shall be calculated based on the
twelve-month period ending on the last date of the most recently ended fiscal quarter. 
  
 “Eligible Assignee” means (a) any Institutional Investor (and any fund that regularly invests in notes or loans similar to the Notes) that is a Note Purchaser or any Affiliate of a Note Purchaser that
has become a holder of a Note in accordance with the terms of this Agreement, or any Institutional Investor or fund that regularly invests in notes or loans similar to the Notes that has been approved by the Issuer (such approval not to be
unreasonably withheld or delayed), or (b) for so long as an Event of Default shall have occurred and be continuing, any Institutional Investor or other financial investor (including, without limitation, any fund that regularly invests in notes or
loans similar to the Notes); provided, however, that neither any Obligor nor any Affiliate of an Obligor shall qualify as an Eligible Assignee under this definition; provided, further, that no Competitor shall qualify as
an Eligible Assignee under this definition. 
  
 “Environmental Action” means any action, suit, demand, demand letter, claim, notice of non-compliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement
relating in any way to any Environmental Law, any Environmental Permit or Hazardous Material or arising from alleged injury or threat to health, safety or the environment, including, without limitation, (a) by any governmental or regulatory
authority for enforcement, cleanup, removal, response, remedial or other actions or damages and (b) by any governmental or regulatory authority or third party for damages, contribution, indemnification, cost recovery, compensation or injunctive
relief. 
  

 9 

 “Environmental Law” means any Federal, state, local or foreign statute, law, ordinance,
rule, regulation, code, order, writ, judgment, injunction, decree or judicial or agency interpretation, policy or guidance relating to pollution or protection of the environment, health, safety or natural resources, including, without limitation,
those relating to the use, handling, transportation, treatment, storage, disposal, release or discharge of Hazardous Materials. 
  
 “Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental
Law. 
  
 “Equity Interests” means, with respect
to any Person, shares of capital stock of (or other ownership or profit interests in) such Person, warrants, options or other rights for the purchase or other acquisition from such Person of shares of capital stock of (or other ownership or profit
interests in) such Person, securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or other acquisition from such Person of
such shares (or such other interests), and other ownership or profit interests in such Person (including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not such shares, warrants,
options, rights or other interests are authorized or otherwise existing on any date of determination. 
  
 “Equity Plan Securities” means any Equity Interests awarded, granted, sold or issued pursuant to any stock option, restricted stock,
stock incentive, deferred compensation, profit sharing, defined benefit, defined contribution or other benefit plan of any Obligor or any Subsidiary of any Obligor. 
  
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the
regulations promulgated and rulings issued thereunder. 
  
 “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a member of the controlled group of any Obligor, or under common control with any Obligor, within the meaning of Section 414 of the Internal
Revenue Code. 
  
 “ERISA Event” means (a) (i) the
occurrence of a reportable event, within the meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day notice requirement with respect to such event has been waived by the PBGC or (ii) the requirements of Section 4043(b) of ERISA
apply with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to such
Plan within the following 30 days; (b) the application for a minimum funding waiver with respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan, pursuant to Section 4041(a)(2) of ERISA
(including any such notice with respect to a plan amendment referred to in Section 4041(e) of ERISA), excluding, however, a “standard termination” as defined in Section 4041(a)(2) of ERISA; (d) the cessation of operations at a facility of
any Obligor or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by any Obligor or any ERISA Affiliate from a Multiple Employer Plan during a plan year for which it was a substantial employer, as
defined in Section 4001(a)(2) of ERISA; (f) the conditions for imposition of a lien under Section 302(f) of ERISA shall have 
  

 10 

 been met with respect to any Plan; (g) the adoption of an amendment to a Plan requiring the provision of security to such
Plan pursuant to Section 307 of ERISA; or (h) the institution by the PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes grounds
for the termination of, or the appointment of a trustee to administer, such Plan. 
  
 “Events of Default” has the meaning specified in Section 6.01. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Exchange Agreement” has the meaning specified in the recitals. 
  
 “Existing Second Lien Credit Agreement” has the meaning
specified in the recitals of the parties to this Agreement. 
  
 “Existing Stockholders” means the WCAS Securityholders and their Affiliates. For purposes of this definition, “Affiliate” means, as applied to any Person, any other Person directly or indirectly controlling,
controlled by, or under direct or indirect common control with, such Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling,” “controlled by” and “under
common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by
contract or otherwise. 
  
 “Existing Third Lien
Notes” means the notes issued under the Original Third Lien Credit Agreement. 
  
 “Extraordinary Receipt” means any cash received by or paid to or for the account of any Person not in the ordinary course of business, including, without limitation, tax refunds, pension plan
reversions, proceeds of insurance (other than proceeds of business interruption insurance to the extent such proceeds constitute compensation for lost earnings), condemnation awards (and payments in lieu thereof), indemnity payments, and any
purchase price adjustment received in connection with any purchase agreement; provided, however, that an Extraordinary Receipt shall not include cash receipts, awards or payments received from proceeds of insurance, condemnation awards
(or payments in lieu thereof) or indemnity payments to the extent that such proceeds, awards or payments (a) are in respect of loss or damage to fixed assets, real property or equipment and are applied to replace or repair such fixed assets, real
property or equipment in respect of which such proceeds, awards or payments were received in accordance with the terms of the Note Purchase Documents (or to reimburse such Person for expenditures previously incurred on account of such replacement or
repair), provided, that such proceeds, awards or payments (i) are immediately deposited into an account held by the Collateral Agent on behalf of the Note Purchasers, and (ii) are applied within nine months after the occurrence of such damage
or loss, provided, that the Issuer shall have delivered documentation reasonably satisfactory to the Agent evidencing the cost and proposed use of any equipment repaired or replaced pursuant thereto, or (b) are received by any Person in
respect of any third party claim against such Person and applied to pay (or to reimburse such Person for its prior payment of) such claim and the costs and expenses of such Person with respect thereto, or (c) are received by any Person by way of
reimbursement or indemnification of such Person for costs and expenses incurred by such Person. 
  

 11 

 “FCC” means the Federal Communications Commission, or any governmental agency succeeding
to the functions thereof. 
  
 “Financial Covenants
Certificate” means the certificate delivered by the Issuer and certified by the Chief Financial Officer of the Issuer demonstrating compliance with the applicable covenants, in the form attached hereto as Exhibit B.

  
 “Fiscal Period” means a fiscal quarter of the
Parent and its Consolidated Subsidiaries ending on March 31, June 30, September 30 and December 31 in any calendar year. 
  
 “Fiscal Year” means a fiscal year of the Parent and its Consolidated Subsidiaries ending on December 31 in any calendar year. 

 
 “Fully Diluted Basis” means, as of any date of
determination, the sum of (a) the number of shares of Voting Stock outstanding as of such date of determination plus (b) the number of shares of Voting Stock issuable upon the exercise, conversion or exchange of all then-outstanding warrants,
options, convertible Capital Stock or indebtedness, exchangeable Capital Stock or indebtedness, or other rights exercisable for or convertible or exchangeable into, directly or indirectly, shares of Voting Stock, whether at the time of issue or upon
the passage of time or upon the occurrence of some future event, and whether or not in the money as of such date of determination. 
  
 “Funded Debt” of any Person means Debt of such Person that by its terms matures more than one year after the date of its creation or
matures within one year from such date but is renewable or extendible, at the option of such Person, to a date more than one year after such date or arises under a revolving credit or similar agreement that obligates the lender or lenders to extend
credit during a period of more than one year after such date, including, without limitation, all amounts of Funded Debt of such Person required to be paid or prepaid within one year after the date of its creation. 
  
 “GAAP” has the meaning specified in Section 1.03.

  
 “Governance Agreement” means the Amended and
Restated Governance Agreement, dated as of July 26, 2005, among the Parent, WCAS Capital Partners III, L.P., WCAS, WCAS Information Partners, L.P., Special Value Absolute Bond Fund II, LLC, Special Value Absolute Return Fund, LLC, the other Note
Purchasers party thereto and certain individual investors and trusts listed on the signature pages thereto, as amended. 
  
 “Governing Body” means the board of directors or other body having the power to direct or cause the direction of the management and
policies of a Person that is a corporation, partnership, trust or limited liability company. 
  
 “Governmental Authority” means any political subdivision or department thereof, any other governmental or regulatory body, commission, central bank, board, bureau, organ or instrumentality or any
court, in each case whether federal, state, local or foreign. 
  

 12 

 “Guaranteed Obligations” has the meaning specified in Section 7.01(a).

  
 “Guaranties” means the Parent Guaranty and
the Subsidiary Guaranties. 
  
 “Guarantors” means
the Parent and the Subsidiary Guarantors. 
  
 “Guaranty
Supplement” has the meaning specified in Section 7.05. 
  
 “Hazardous Materials” means (a) petroleum or petroleum products, by-products or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls or radon gas and (b) any other chemicals,
materials, substances or wastes designated, classified or regulated as hazardous or toxic or as a pollutant or contaminant under any Environmental Law or with respect to which liability or standards of conduct are imposed under any Environmental
Law. 
  
 “Hedge Agreements” means interest rate
swap, cap or collar agreements, interest rate future or option contracts, currency swap agreements, currency future or option contracts and other hedging agreements. 
  
 “Highest Lawful Rate” means the highest lawful interest rate under applicable state law. 
  
 “Incur” means, with respect to any Debt, to incur, create,
issue, assume, guarantee or otherwise become liable for or with respect to, or become responsible for, the payment of, contingently or otherwise, such Debt. 
  
 “Indemnified Party” has the meaning specified in Section 10.17(a). 
  
 “Information Statement” has the meaning specified in Section 4.01(ee). 
  
 “Institutional Investor” means (a) any original Note
Purchaser of a Note, (b) any holder of a Note, and (c) any bank, trust company, savings and loan association or other financial institution, any pension plan, any investment company, any insurance company or holding company thereof, any broker or
dealer, or any other similar financial institution or entity, regardless of legal form. 
  
 “Insufficiency” means, with respect to any Plan, the amount, if any, of its unfunded benefit liabilities, as defined in Section 4001(a)(18) of ERISA. 
  
 “Interconnection Agreements” means each Interconnection
Agreement entered into by and between the Issuer and/or any Subsidiary Guarantor, on the one hand, and (a) BellSouth Telecommunications, Inc., (b) Sprint companies (including Sprint Florida Incorporated, Carolina Telephone, Telegraph Company and
Central Telephone Company – North Carolina Division, United Telephone Company of the Carolinas, United Telephone – Southeast Inc., Central Telephone Company of Virgina and United Telephone – Southeast Inc.), or (c) Verizon companies
(including Verizon Florida, Inc., GTE South Incorporated, GTE Southwest Incorporated d/b/a Verizon Southwest, Verizon Delaware, Inc., Verizon South, Inc., Verizon Maryland, Inc., Verizon New Jersey, Inc., Verizon New York, Inc., Verizon 

 

 13 

 Pennsylvania, Inc., Verizon Virginia, Inc., Verizon Washington D.C. Inc., Verizon West Virginia, Inc.), on the other
hand, and any agreement replacing any such Interconnection Agreement from time to time. 
  
 “Intercreditor and Subordination Agreements” means the Second Lien Intercreditor and Subordination Agreement and the Third Lien Intercreditor and Subordination Agreement. 
  
 “Interest Coverage Ratio” means, at any date of
determination the ratio of (a) Consolidated EBITDA of the Parent and its Subsidiaries to (b) the cumulative cash interest paid in respect of all Debt for Borrowed Money of or by the Parent and its Subsidiaries. For the fiscal quarter ending
September 30, 2005, cumulative cash interest paid shall be calculated as cumulative cash interest paid for the nine-month period then ended multiplied by twelve divided by nine; for fiscal quarters ending December 31, 2005 and thereafter, cumulative
cash interest paid shall be calculated based on the twelve-month period ending on the last date of the most recently ended fiscal quarter. 
  
 “Interest Payment Date” means March 31, June 30, September 30 and December 31 of each year, commencing on September 30, 2005;
provided, however, that whenever the Interest Payment Date would otherwise occur on a day other than a Business Day, such Interest Payment Date shall be extended to occur on the next succeeding Business Day, unless interest is required
to be paid under the Second Lien Loan Documents on the preceding Business Day, in which case the Interest Payment Date shall occur on the preceding Business Day. 
  
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, and the
regulations promulgated and rulings issued thereunder. 
  
 “Inventory” means all Inventory referred to in Section 1(b) of the Security Agreement. 
  
 “Investment” in any Person means any loan or advance to such Person, any purchase or other acquisition of any Equity Interests or Debt or
the assets comprising a division or business unit or a substantial part or all of the business of such Person, any capital contribution to such Person or any other direct or indirect investment in such Person, including, without limitation, any
acquisition by way of a merger or consolidation and any arrangement pursuant to which the investor Incurs Debt of the types referred to in clause (i) or (j) of the definition of “Debt” in respect of such Person. 
  
 “Issuer” has the meaning specified in the preamble of this
Agreement. 
  
 “LIBOR” means, at all times during
any calendar month, the one-month London Interbank Offered Rate (rounded upward to the nearest 1/16 of one percent) that appears on Bloomberg as of approximately 11:00 a.m. (Los Angeles time) two Business Days prior to the commencement of such
calendar month (or, in the case of the month in which the Closing Date occurs, two Business Days prior to the Closing Date); provided, that if such index ceases to exist or is no longer published or announced, then the term “LIBOR”
means, at all times during any calendar month, the one-month London Interbank Offered Rate (rounded upward to the nearest 1/16 of one percent) as published in The Wall Street Journal two Business Days prior to the 
  

 14 

 commencement of such calendar month, and if this latter index ceases to exist or is no longer published or announced,
then the term “LIBOR” means, at all times during any calendar month, the Prime Rate (rounded upward to the nearest 1/16 of one percent) as published in The Wall Street Journal two Business Days prior to the commencement of such
calendar month. LIBOR shall be determined on any date of determination by the Agent. 
  
 “Lien” means any lien, security interest or other charge or encumbrance of any kind, or any other type of preferential arrangement, including, without limitation, the lien or retained security title
of a conditional vendor and any easement, right of way or other encumbrance on title to real property. 
  
 “Management Plan” means that certain ITC^DeltaCom 2005-2006 Business Plan, dated March 9, 2005, as delivered by the Parent to the Note
Purchasers. 
  
 “March 2005 Warrants” has the
meaning specified in Section 5.01(t). 
  
 “Margin
Stock” has the meaning specified in Regulation U. 
  
 “Material Adverse Change” means any material adverse change in the business, condition (financial or otherwise), operations, performance, properties or prospects of the Obligors and the Subsidiaries of the Obligors, taken
as a whole. 
  
 “Material Adverse Effect” means a
material adverse effect on (a) the business, condition (financial or otherwise), operations, performance, properties or prospects of the Obligors and the Subsidiaries of the Obligors, taken as a whole, (b) the rights and remedies of the Agents or
any Note Purchaser under any Note Purchase Document or (c) the ability of any Obligor to perform its Obligations under any Note Purchase Document to which it is or is to be a party. 
  
 “Material Contract” means, with respect to any Person, each contract to which such Person is a party
involving aggregate consideration payable to or by such Person of $10,000,000 or more in any year or otherwise material to the business, condition (financial or otherwise), operations, performance, properties or prospects of such Person, including
but not limited to, in the case of any Obligor or any Subsidiary of any Obligor, the Interconnection Agreements. 
  
 “Mortgage Policies” has the meaning specified in Section 5.01(n)(i)(2). 
  
 “Mortgages” has the meaning specified in Section
5.01(n)(i). 
  
 “Multiemployer Plan” means a
multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which any Obligor or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation to
make contributions. 
  
 “Multiple Employer Plan”
means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Obligor or any ERISA Affiliate and at least one Person other than the Obligors and the ERISA Affiliates or (b) was so 

 

 15 

 maintained and in respect of which any Obligor or any ERISA Affiliate could have liability under Section 4064 or 4069 of
ERISA in the event such plan has been or were to be terminated. 
  
 “Net Cash Proceeds” means, with respect to any sale, lease, transfer or other disposition of any asset by any Person (excluding Equity Interests), or any Extraordinary Receipt received by or paid to or for the account of
any Person, the aggregate amount of cash received from time to time (whether as initial consideration or through payment or disposition of deferred consideration) by or on behalf of such Person in connection with such transaction after deducting
therefrom only (without duplication) (a) reasonable and customary brokerage commissions, underwriting fees and discounts, legal fees and expenses, finder’s fees and other similar fees and commissions and out-of-pocket costs and expenses, and
(b) the amount of taxes payable in connection with or as a result of such transaction, in each case to the extent, but only to the extent, that the amounts so deducted are, at the time of receipt of such cash, actually paid to a Person that is not
an Affiliate of such Person and are properly attributable to such transaction or to the asset that is the subject thereof; provided, however, that in the case of taxes that are deductible under clause (b) above but for the fact that,
at the time of receipt of such cash, such taxes have not been actually paid or are not then payable, such Obligor or such Subsidiary may deduct an amount (the “Reserved Amount”) equal to the amount reserved in accordance with GAAP
for such Obligor’s or such Subsidiary’s reasonable estimate of such taxes, other than taxes for which such Obligor or such Subsidiary is indemnified; provided, further, however, that, at the time such taxes are paid, an
amount equal to the amount, if any, by which the Reserved Amount for such taxes exceeds the amount of such taxes actually paid shall constitute “Net Cash Proceeds” of the type for which such taxes were reserved for all purposes hereunder;
provided, further, still, that Net Cash Proceeds from Extraordinary Receipts shall not include up to $500,000 of cash proceeds in the aggregate received in connection with one or more such receipts to the extent such cash
proceeds are applied to replace the asset in respect of which such cash proceeds were received or are otherwise invested in such Person’s business, so long as application is made within nine months after the occurrence of such receipt.

  
 “New Third Lien Securities Purchase
Agreement” has the meaning specified in the recitals of the parties to this Agreement, as amended as permitted hereby. 
  
 “New Third Lien Documents” means the New Third Lien Securities Purchase Agreement, the New Third Lien Notes, the Exchange Agreement, the
security agreements pursuant thereto and all other agreements related thereto, each as amended as permitted hereby. 
  
 “New Third Lien Lenders” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “New Third Lien Notes” has the meaning specified in the
recitals of the parties to this Agreement. 
  
 “Non-Consenting Note Purchaser” has the meaning set forth in Section 10.01(d). 
  
 “Note Purchase” has the meaning specified in Section 2.01(b). 
  
 “Note Purchase Documents” means (a) for purposes of this Agreement and the Notes and any amendment,
supplement or modification hereof or thereof, (i) this Agreement, (ii) 
  

 16 

 the Notes, (iii) the Warrant Documents and (iv) the Collateral Documents and (b) for purposes of the Collateral Documents
and for all other purposes other than for purposes of this Agreement and the Notes, (i) this Agreement, (ii) the Notes and (iii) the Collateral Documents, in all cases as amended or refinanced from time to time. 
  
 “Note Purchasers” has the meaning set forth in the preamble
to this Agreement and includes each Person that shall become a Note Purchaser hereunder for so long as such Note Purchaser or Person, as the case may be, shall be a party to this Agreement. 
  
 “Note(s)” has the meaning specified in Section
2.01(a). 
  
 “NPL” means the National
Priorities List under CERCLA. 
  
 “Obligation”
means, with respect to any Person, any payment, performance or other obligation of such Person of any kind, including, without limitation, any liability of such Person on any claim, whether or not the right of any creditor to payment in respect of
such claim is reduced to judgment, liquidated, unliquidated, fixed, contingent, matured, disputed, undisputed, legal, equitable, secured or unsecured, and whether or not such claim is discharged, stayed or otherwise affected by any proceeding
referred to in Section 6.01(f). Without limiting the generality of the foregoing, the Obligations of any Obligor under the Note Purchase Documents include (a) the obligation to pay principal, interest, charges, the Prepayment Fee, expenses,
fees, attorneys’ fees and disbursements, indemnities and other amounts payable by such Obligor under any Note Purchase Document, including Post-Petition Interest, and (b) the obligation of such Obligor to reimburse any amount in respect of any
of the foregoing that any Note Purchaser, in its sole discretion, may elect to pay or advance on behalf of such Obligor. 
  
 “Obligors” means the Issuer and the Guarantors. 
  

“Open Year” has the meaning specified in Section 4.01(r)(iii). 
  
 “Ordinary Course Obligations” means obligations (exclusive of obligations for the payment of borrowed
money) under letters of credit, surety bonds, pledges, deposits or other arrangements made to secure the performance of tenders, bids, leases, statutory or regulatory obligations, bankers’ acceptances, surety and appeal bonds, government
contracts, performance and return-of-money bonds and other obligations of a similar nature incurred in the ordinary course of business. 
  
 “Original Third Lien Credit Agreement” has the meaning specified in the recitals of parties to this Agreement. 
  
 “Other Taxes” has the meaning specified in Section
2.07(b). 
  
 “Parent” has the meaning
specified in the preamble of this Agreement. 
  
 “Parent
Guaranty” means the guaranty of the Parent set forth in Article VII. 
  
 “Parent Transaction Securities” means the Notes. 
  

 17 

 “PBGC” means the Pension Benefit Guaranty Corporation (or any successor). 
  
 “Permitted Encumbrances” has the meaning specified in the
Mortgages. 
  
 “Permitted Liens” means such of
the following as to which no enforcement, collection, execution, levy or foreclosure proceeding shall have been commenced: (a) Liens for taxes, assessments and governmental charges or levies to the extent not required to be paid under Section
5.01(b); (b) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s Liens and other similar Liens arising in the ordinary course of business securing obligations that are not
overdue for a period of more than 30 days; (c) pledges or deposits to secure obligations under workers’ compensation laws or similar legislation or to secure public or statutory obligations; and (d) Permitted Encumbrances. 
  
 “Permitted Parent Debt” has the meaning specified in
Section 5.02(b)(v). 
  
 “Permitted
Reorganization” means a corporate reorganization transaction or series of transactions approved by the Agent in its reasonable discretion pursuant to which certain business operations of BTI are combined with certain business operations of
ITC^DeltaCom Communications, Inc. and DeltaCom Information Systems, Inc. (whether accomplished by merger, share exchange, stock transfer, asset transfer or otherwise) for purposes of avoiding overlapping of certain interconnection agreements,
certain duplicative fees and expenses, and otherwise streamlining the business and operations of the Parent and its Subsidiaries; provided, that, in addition to other reasonable conditions the Agent may request, (a) in the case of any merger
or consolidation involving the Issuer, the Issuer shall be the surviving Person, (b) the Person formed by or surviving such merger or consolidation (if not the Parent) shall be a direct or indirect wholly-owned Subsidiary of the Parent and if a
Subsidiary Guarantor is a party thereto, the Person formed by or surviving such merger or consolidation (if not the Parent or the Issuer) shall be a direct or indirect wholly-owned Subsidiary Guarantor, (c) immediately after giving effect to such
reorganization, on a pro forma basis, the Parent and its Subsidiaries, taken as a whole, shall have a Consolidated Net Worth equal to or greater than the Consolidated Net Worth of the Parent and its Subsidiaries, taken as a whole, immediately prior
to such reorganization, and (d) such reorganization does not result in any Obligor or any of its Subsidiaries no longer being wholly owned, directly or indirectly, within the ITC^DeltaCom, Inc. consolidated group of companies. Notwithstanding the
Agent’s right to approve the Permitted Reorganization in its reasonable discretion, neither the Agent nor any Note Purchaser shall charge the Obligors a fee for such approval, so long as no other lenders of the Issuer charge any fee for
approval and/or consent to the Permitted Reorganization. 
  
 “Person” means an individual, partnership, corporation (including a business trust), limited liability company, joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any
political subdivision or agency thereof. 
  
 “Plan” means a Single Employer Plan or a Multiple Employer Plan. 
  
 “Pledged Debt” has the meaning specified in the Security Agreement. 
  
 “Pledged Shares” has the meaning specified in the Security Agreement. 
  

 18 

 “Post-Petition Interest” means any and all interest and expenses that accrue after the
commencement of any case, proceeding or other action relating to the bankruptcy, insolvency or reorganization of any one or more of the Obligors (or would accrue but for the operation of applicable bankruptcy or insolvency laws) whether or not such
interest is allowed or allowable as a claim in any such proceeding. 
  
 “Pre-Closing Date Information” means all of the written information provided by or on behalf of the Issuer to the Note Purchasers prior to the Closing Date. 
  
 “Preferred Interests” means, with respect to any Person, Equity Interests issued by such Person that are
entitled to a preference or priority over any other Equity Interests issued by such Person upon any distribution of such Person’s property and assets, whether by dividend or upon liquidation. 
  
 “Preferred Stock” means, with respect to any Person, any and
all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of such Person’s preferred or preference equity, whether outstanding on the date of this Agreement or issued thereafter, including,
without limitation, all series and classes of such preferred or preference stock. 
  
 “Prepayment Fee” has the meaning specified in Section 2.10. 
  
 “Principal Lending Office” means, with respect to any Note Purchaser, the office of such Note Purchaser specified as its “Principal
Lending Office” opposite its name on Schedule I hereto or in the Assignment and Acceptance pursuant to which it became a Note Purchaser, as the case may be, or such other office of such Note Purchaser as such Note Purchaser may from time
to time specify to the Issuer and the Agent. 
  
 “Projections” has the meaning specified in Section 4.01(i). 
  
 “PUC” means any state regulatory agency or body that exercises jurisdiction over the rates or services or the ownership, construction or operation of any network facility or long distance
telecommunications systems or over Persons who own, construct or operate a network facility or long distance telecommunications systems, in each case by reason of the nature or type of the business subject to regulation and not pursuant to laws and
regulations of general applicability to Persons conducting business in such state. 
  
 “Redeem” means to purchase, redeem or otherwise retire or acquire for value, provided, however, that, notwithstanding the foregoing, “Redeem” shall not include (a) the
acquisition and/or retirement by the Parent of Common Stock or other Equity Interests of the Parent tendered by the holder of an Equity Plan Security in payment of an exercise or purchase price specified in such Equity Plan Security, (b) a Benefit
Plan Exchange Offer, (c) the purchase or redemption of Equity Interests using only Common Stock (or warrants or options to purchase Common Stock) as consideration for such purchase or redemption or (d) the payment by the Parent of cash in lieu of
fractional shares of Capital Stock of the Parent in an amount not to exceed $500,000 through the Termination Date. 
  

 19 

 “Regulation U” means Regulation U of the Board of Governors of the Federal Reserve
System, as in effect from time to time. 
  
 “Replaced Note
Purchaser” has the meaning specified in Section 2.07(g). 
  
 “Replacement Closing Date” has the meaning specified in Section 2.07(g). 
  
 “Replacement Note Purchaser” has the meaning specified in Section 2.07(g). 
  
 “Required Holders” means, at any time, Note Purchasers owed
or holding at least a majority of the aggregate principal amount of the Notes outstanding at such time; provided, however, that if any Note Purchaser shall be a Defaulting Note Purchaser at such time, there shall be excluded from the
determination of Required Holders at such time the aggregate principal amount of the Notes owing to such Note Purchaser (in its capacity as a Note Purchaser) and outstanding at such time. 
  
 “Responsible Officer” means any officer of any Obligor or any of its Subsidiaries. 
  
 “Restricted Payment” has the meaning specified in Section
5.02(g). 
  
 “SEC” means the United States
Securities and Exchange Commission. 
  
 “Second Lien
Agent” has the meaning specified in the recitals of the parties to this Agreement. 
  
 “Second Lien Intercreditor and Subordination Agreement” means the Intercreditor and Subordination Agreement, dated as of the date hereof, among the Agent and the Collateral Agent, on their own behalf
and on behalf of the First Lien Lenders, the Second Lien Agent, on their own behalf and on behalf of the Second Lien Lenders, and the Obligors, as amended. 
  
 “Second Lien Lenders” means the “Lenders” under and as defined in the Amended Second Lien Credit Agreement, as amended as
permitted hereby. 
  
 “Second Lien Loan
Documents” means the “Loan Documents” as defined in the Amended Second Lien Credit Agreement, as amended, refinanced or replaced in accordance with the Second Lien Intercreditor and Subordination Agreement. 
  
 “Secured Obligations” has the meaning specified in the
Security Agreement and shall include without limitation the obligations secured by the Mortgages. 
  
 “Secured Parties” means the Agent, the Collateral Agent, and the Note Purchasers. 
  
 “Securities Act” means the Securities Act of 1933, as
amended. 
  
 “Security Agreement” has the meaning
specified in Section 3.01(b)(ii). 
  

 20 

 “Senior Debt” means, for any period, all Debt of the Obligors and their respective
Subsidiaries incurred pursuant to this Agreement and secured by a first priority Lien on real or personal property of the Obligors and their respective Subsidiaries. 
  
 “Senior Debt Ratio” means, as of any date of determination, the ratio of (a) Senior Debt as of such date to
(b) Consolidated EBITDA of the Parent and its Subsidiaries. 
  
 “Senior Officer” means any Person holding any of the following offices (or any similar position from time to time) of the Parent: 
  
 Chief Executive Officer; 
 Chief Financial
Officer; 
 General Counsel; 
 Senior Vice President, Finance/Controller; 
 Executive Vice President, Operations; 
 Senior Vice President, Finance/Treasurer; 
 Executive Vice President, Retail Sales; 
 Senior Vice President, Carrier Sales; 
 Chief Information Officer; 
 Vice President,
Network Planning; 
 Vice President, Market Optimization & Planning; 
 Vice President, Systems; 
 Vice President,
Engineering; 
 Vice President, Marketing & Product Development; 
 Vice President, IT Services; 
 Vice President,
Account Services; 
 Vice President, Network Operations; or 
 Vice President, Human Resources 
  
 “Series A Certificate of Designation” means the Parent’s Certificate of Designation of the Powers, Preferences and Relative, Participating, Optional and other Special Rights of 8% Series A Convertible Redeemable
Preferred Stock and Qualifications, Limitations and Restrictions thereof, as in effect from time to time. 
  
 “Series A PIK Dividends” means the shares of Series A Preferred Stock paid or payable as dividends on outstanding shares of Series A
Preferred Stock. 
  
 “Series A Preferred Stock”
means the shares of preferred stock of the Parent designated as the 8% Series A Convertible Redeemable Preferred Stock and issued pursuant to the Series A Certificate of Designation, including, without limitation, Series A PIK Dividends. 

 
 “Series B Certificate of Designation” means the
Parent’s Certificate of Designation of the Powers, Preferences and Relative, Participating, Optional and other Special Rights of 8% Series B Convertible Redeemable Preferred Stock and Qualifications, Limitations and Restrictions thereof, as in
effect from time to time. 
  

 21 

 “Series B PIK Dividends” means the shares of Series B Preferred Stock paid or payable as
dividends on outstanding shares of Series B Preferred Stock. 
  
 “Series B Preferred Stock” means the shares of preferred stock of the Parent designated as the 8% Series B Convertible Redeemable Preferred Stock and issued pursuant to the Series B Certificate of Designation, including,
without limitation, Series B PIK Dividends. 
  
 “Series C
Certificate of Designation” means the Parent’s Certificate of Designation of the Powers, Preferences and Relative, Participating, Optional and other Special Rights of Series C Convertible Preferred Stock and Qualifications, Limitations
and Restrictions thereof, as in effect from time to time. 
  
 “Series C PIK Dividends” means the shares of Series C Preferred Stock paid or payable as dividends on outstanding shares of Series C Preferred Stock. 
  
 “Series C Preferred Stock” means the shares of preferred stock of the Parent designated as the Series C
Convertible Preferred Stock and issued pursuant to the Series C Certificate of Designation, including, without limitation, Series C PIK Dividends. 
  
 “Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of
any Obligor or any ERISA Affiliate and no Person other than the Obligors and the ERISA Affiliates or (b) was so maintained and in respect of which any Obligor or any ERISA Affiliate could have liability under Section 4069 of ERISA in the event such
plan has been or were to be terminated. 
  
 “Solvency
Certificate” has the meaning specified in Section 3.01(r). 
  
 “Solvent” means, with respect to any Person, that as of the date of determination both (a) the then fair market value of the property of such Person is (i) greater than the total amount of liabilities
(including contingent liabilities) of such Person and (ii) not less than the amount that is reasonably believed to be required to pay the probable liabilities on such Person’s then existing debts as they become absolute and due considering all
financing alternatives and asset sales available to such Person pursuant to the terms of this Agreement and (b) such Person does not believe that it shall be required to incur debts beyond its ability to pay such debts as they become due. For
purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to
become an actual or matured liability. 
  
 “Subordinated
Debt” means Debt that, (a) does not have any scheduled principal payment, mandatory principal prepayment, sinking fund payment or similar payment due prior to the maturity date of the Notes, (b) is not secured by any Lien on any Property or
assets of any Obligor or any Subsidiaries, (c) is subordinated on terms and conditions reasonably satisfactory to the Required Holders and (d) is subject to such covenants and events of default as may be reasonably acceptable to the Required
Holders. 
  
 “Subsidiary” of any Person means any
corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which) more than 50% of (a) the issued 
  

 22 

 and outstanding capital stock having ordinary voting power to elect a majority of the Board of Directors of such
corporation (irrespective of whether at the time capital stock of any other class or classes of such corporation shall or might have voting power upon the occurrence of any contingency), (b) the interest in the capital or profits of such
partnership, joint venture or limited liability company or (c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled by such Person, by such Person and one or more of its other Subsidiaries or by
one or more of such Person’s other Subsidiaries. 
  
 “Subsidiary Guarantors” means the Subsidiaries of the Parent listed on Schedule II hereto and each other Subsidiary of the Parent that shall be required to execute and deliver a guaranty pursuant to Section
5.01(j). 
  
 “Subsidiary Guaranty” means the
guaranty of the Subsidiary Guarantors set forth in Article VII. 
  
 “Surviving Debt” means Debt of each Obligor and its Subsidiaries outstanding as of the Closing Date (other than Debt under the Note Purchase Documents, Second Lien Loan Documents and the New Third Lien Documents) as set
forth on Schedule 4.01(t). 
  
 “Tax
Agreement” means the Tax Indemnification Agreement, dated as of August 26, 1997, between ITC Holding Company, Inc. and the Parent. 
  
 “Tax Certificate” has the meaning specified in Section 5.03(m). 
  
 “Taxes” has the meaning specified in Section 2.07(a). 
  
 “TCP” has the meaning specified in the preamble to this
Agreement. 
  
 “Termination Date” means the
earlier of (a) the date on which the Agent, by notice to the Issuer, declares the Notes, all interest thereon and all other amounts payable under this Agreement and the other Note Purchase Documents to be forthwith due and payable pursuant to
Section 6.01 and (b) July 26, 2009.  
  
 “Third Amended ITCD Credit Agreement” has the meaning specified in the Recitals to this Agreement. 
  
 “Third Lien Agents” means the “Agents” under and as defined in the New Third Lien Securities Purchase Agreement. 
  
 “Third Lien Intercreditor and Subordination Agreement” means
the Intercreditor and Subordination Agreement, dated as of the date hereof, among each of the Agents on its behalf and on behalf of the Note Purchasers, the Second Lien Agents, on their own behalf and on behalf of the Second Lien Lenders, the Third
Lien Agents, the Third Lien Lenders, and the Obligors, as amended as permitted hereby. 
  
 “Third Lien Lenders” means the “Purchasers” from time to time under and as defined in the New Third Lien Securities Purchase Agreement. 
  

 23 

 “Title Company” means one or more title insurance companies reasonably satisfactory to
the Collateral Agent. 
  
 “Total Leverage Ratio”
means, at any date of determination, the ratio of (x) Consolidated Debt as of such date to (y) Consolidated EBITDA of the Parent and its Subsidiaries. For purposes of computing Total Leverage Ratio only, the term “Debt” as used in clause
(x) above means, without duplication, the aggregate of all Debt of the type described in clauses (a), (b), (c), (d), (e), (h) and (j) of the definition of “Debt” and Contingent Obligations (other than Contingent Obligations relating to
minimum purchase requirements under agreements entered into in the ordinary course of business of the Parent and its Subsidiaries) of the Parent and its Subsidiaries in respect of the foregoing. 
  
 “Transactions” means the transactions contemplated by the
Note Purchase Documents. 
  
 “Transferee” means
any direct or indirect transferee of all or any part of a Note in accordance with Section 2.12, as registered in the register maintained by the Issuer pursuant to Section 2.11. 
  
 “Unencumbered Parcel” means any parcel of real property
owned by any Obligor or its Subsidiaries that was not previously pledged as Collateral to secure the Obligations of the Obligors under the Existing Second Lien Credit Agreement or the Third Amended ITCD Credit Agreement. 
  
 “Voting Stock” means, with respect to any Person, Capital
Stock of any class or kind (or equivalent Equity Interest in any other Person) ordinarily having the power to vote for the election of directors, managers or other voting members of the governing body of such Person. For purposes of this definition,
Common Stock of the Parent shall constitute Voting Stock of the Parent and the Series A Preferred Stock, the Series B Preferred Stock and the Series C Preferred Stock shall not constitute Voting Stock of the Parent. 
  
 “Warrants” means warrants governed by the Warrant Agreement
and issued under the New Third Lien Securities Purchase Agreement and the Warrant Agreement. 
  
 “Warrant Agreement” means that certain Warrant Agreement, dated as of July 26, 2005, between the Parent and Mellon Investor Services LLC, as warrant agent, as amended. 
  
 “Warrant Documents” means (a) the Warrant Agreement, (b) the
Governance Agreement, and (c) that certain Registration Rights Agreement, dated as of even date herewith, by and among the Parent and the New Purchasers (as defined therein) and (d) each other agreement, certificate, document or instrument delivered
in connection with the agreements referred to in clauses (a), (b) and (c) above. 
  
 “Warrant Shares” means the Series C Preferred Stock, the Common Stock of the Parent or the other securities of the Parent issued or issuable upon exercise of the Warrants. 
  
 “WCAS” means Welsh, Carson, Anderson & Stowe VIII, L.P.

  

 24 

 “WCAS Securityholders” means, collectively, (a) WCAS Capital Partners III, L.P., (b)
WCAS, (c) WCAS Information Partners, L.P., (d) each of the individual investors and trusts that executed the Governance Agreement as “WCAS Securityholders,” (e) the Affiliates of any of the Persons referred to in clauses (a), (b), (c) and
(d) above, (f) the related Persons of any of the Persons referred to in clauses (a), (b), (c) and (d) above and (g) the WCAS Securityholder Permitted Transferees. For purposes of this definition, “Affiliate” means, as applied to any
Person, any other Person directly or indirectly controlling, controlled by, or under direct or indirect common control with, such Person. For purposes of this definition, “control” (including, with correlative meanings, the terms
“controlling,” “controlled by” and “under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of
such Person, whether through the ownership of voting securities, by contract or otherwise. 
  
 “WCAS Securityholder Permitted Transferees” means the individuals who are the heirs, executors, administrators, testamentary trustees, legatees, beneficiaries, spouses or lineal descendants of any of
the WCAS Securityholders who are natural Persons. 
  
 “Welfare Plan” means a welfare plan, as defined in Section 3(1) of ERISA, that is maintained for employees of any Obligor or in respect of which any Obligor could have liability. 
  
 “Withdrawal Liability” has the meaning specified in Part I
of Subtitle E of Title IV of ERISA. 
  
 Section 1.02
Computation of Time Periods; Other Definitional Provisions. In this Agreement and the other Note Purchase Documents in the computation of periods of time from a specified date to a later specified date, the word “from” means
“from and including” and the words “to” and “until” each mean “to but excluding”. References in the Note Purchase Documents to any agreement or contract “as amended” shall mean
and be a reference to such agreement or contract as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with its terms. Any of the terms defined herein may, unless the context otherwise requires, be used
in the singular or the plural, depending on the reference. 
  
 (a)
References to “Sections” and “Subsections” shall be to Sections and subsections, respectively, of this Agreement and references to a “Schedule” or an “Exhibit” shall be to Schedules and Exhibits, respectively,
attached to this Agreement, in each case unless otherwise specifically provided. 
  
 (b) The use in any of the Note Purchase Documents of the word “include” or “including”, when following any general statement, term or matter, shall not be construed to limit such statement, term or
matter to the specific items or matters set forth immediately following such word or to similar items or matters, whether or not nonlimiting language (such as “without limitation” or “but not limited to” or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or matters that fall within the broadest possible scope of such general statement, term or matter; unless such term related to a period of time.

  

 25 

 (c) References to any document, instrument or agreement shall include all exhibits, schedules and other
attachments thereto. 
  
 Section 1.03 Accounting Terms.
Except as otherwise expressly provided herein, all accounting terms not otherwise defined herein shall have the meanings assigned to them in conformity with generally accepted accounting principles in the United States of America
(“GAAP”). Financial statements and other information required to be delivered by the Issuer to Agent pursuant to Section 5.03 shall be prepared in accordance with GAAP as in effect at the time of such preparation (and
delivered together with the reconciliation statements provided for in Section 5.03(f), if applicable); provided, that all calculations in connection with financial definitions and financial covenants set forth in Section 5.02(r) shall
utilize accounting principles and policies in conformity with those used to prepare the financial statements referred to in Section 4.01(g)(i); provided, further, if the Issuer notifies the Agent that the Issuer wishes to amend any covenant
in Section 5.02(r) or any related definition to eliminate the effect of any change in GAAP occurring after the date hereof on the operation of such covenant (or if Agent notifies the Issuer that the Required Holders wish to amend Section
5.02(r) or any related definition for such purpose), then (i) the Issuer and Agent shall negotiate in good faith to agree upon an appropriate amendment to such covenant and (ii) the Issuer’s compliance with such covenant shall be determined
on the basis of GAAP in effect immediately before the relevant change in GAAP became effective until such covenant is amended in a manner satisfactory to the Issuer and the Required Holders. 
  
 ARTICLE II. NOTE PURCHASE 
  
 Section 2.01 Authorization; Purchase and Sale of Notes. 
  
 (a) The Issuer shall authorize the issue and sale of $209,000,000 aggregate
principal amount of Senior Secured Notes due 2009 to be dated the date of issuance thereof (collectively, the “Notes”, such term to include any such notes issued in substitution therefor pursuant to this Agreement). The Notes shall
be substantially in the form of Exhibit A. 
  
 (b) Subject
to the terms and conditions hereof and on the basis of the representations and warranties hereinafter set forth, the Issuer hereby agrees to sell, and the Note Purchasers hereby agree to purchase from the Issuer, the Notes. Each Note Purchaser
agrees to purchase the amount of such Note Purchaser’s Commitment as set forth on Schedule I hereto at the purchase price of 100% of the principal amount thereof (the “Note Purchase”). The Issuer shall execute and
deliver a Note to each Note Purchaser. Each Note shall represent the obligation of the Issuer to repay the principal amount set forth thereon, together with interest thereon as prescribed in Section 2.03. Each Note Purchaser’s Commitment
is expressed in U.S. dollars and as a percentage of the whole as of the Closing as set forth in Schedule I hereto. 
  
 (c) The aggregate outstanding principal balance of the Notes shall be due and payable in full in immediately available funds on the Termination Date, if
not sooner paid in full. No payment with respect to the Notes may be reborrowed. 
  

 26 

 (d) Each Note Purchaser’s obligations under this Agreement is several and not joint and each Note
Purchaser shall have no obligation or liability to any Person for the performance or non-performance by any other Note Purchaser hereunder. 
  
 (e) Each payment of principal with respect to the Notes shall be paid to each Note Purchaser in accordance with Section 2.06, ratably in proportion
to each such Note Purchaser’s respective percentage of the then outstanding principal amount of the Notes. 
  
 (f) The Notes shall be secured by the Collateral as provided in the Collateral Documents. In addition, payment of the aggregate principal amount of and
interest on the Notes and all other Obligations shall be unconditionally guaranteed by the Subsidiary Guarantors pursuant to Article VII. 
  
 Section 2.02 Closing. The closing of the Note Purchase (as defined above) shall be made at the offices of Skadden, Arps, Slate, Meagher & Flom
LLP at Four Times Square, New York, NY 10036, commencing at 10:00 A.M. local time on the Closing Date by wire transfer of immediately available U.S. funds payable to the order of the Issuer against delivery of the Notes in the aggregate amount of
the Note Purchase (the “Closing”). 
  
 Section
2.03 Interest. 
  
 (a) Scheduled Interest. The
Issuer shall pay interest on the unpaid principal amount of each Note owing to each Note Purchaser from the date of such Note until such principal amount shall be paid in full, as follows (i) at an adjustable rate of cash interest equal to LIBOR
plus 8.0% per annum, payable quarterly; provided, that, if such cash interest rate shall at any time exceed 12.0% per annum, any amount in excess of 12.0% may, at the Issuer’s option, be payable-in-kind by delivery of additional Notes
(valued at 100% of the principal amount thereof, which shall be rounded upward to the nearest $1.00) in lieu of cash (“PIK”), or in cash; plus (ii) PIK interest at 0.5% per annum. Any and all PIK interest shall be added to the
principal of the Notes quarterly on the applicable Interest Payment Date. The Issuer shall pay cash interest to the Note Purchasers, or issue additional Notes in lieu of cash interest payments as provided herein, quarterly in arrears on each
Interest Payment Date; provided, however, that any delay or failure by the Issuer to issue and deliver additional Notes quarterly in lieu of cash interest shall not effect the obligation of the Issuer therefor and this Agreement and the Note
Purchasers’ then outstanding Notes shall constitute satisfactory evidence of any such PIK interest due and owing to each Note Purchaser. Interest shall accrue from the most recent date to which interest has been paid or, if no interest has been
paid, from the date of the original issuance of the Notes. 
  
 (b)
Default Interest. Upon the occurrence and during the continuance of a Default, the Issuer shall pay interest on the unpaid principal amount of each Note owing to each Note Purchaser, payable in arrears on the dates referred to in subsection
(a) of this Section 2.03 and on demand, at a rate per annum equal at all times to 2.0% per annum above the rate per annum required to be paid on such Note pursuant to subsection (a) of this Section 2.03 to the fullest extent permitted
by law (“Default Interest”) and to the fullest extent permitted by law, the amount of any interest, fee or other amount payable under the Note Purchase Documents that is not paid when due, from the date such amount shall be due
until such amount shall be paid in full, payable in arrears on the date such amount shall be paid in full and on demand, at a rate per 
  

 27 

 annum equal at all times to 2.0% per annum above the rate per annum required to be paid, in the case of interest, on the
Notes on which such interest has accrued pursuant to subsection (a) of this Section 2.03. 
  
 Section 2.04 Fees. (a) Concurrently with the Closing, the Issuer shall pay to the Agent (or its designees) a non-refundable financing enhancement
fee in the amount agreed to between the Issuer and the Agent in that certain Fee Agreement, dated as of March 31, 2005. 
  
 (b) Concurrently with the Closing and on each July 26th thereafter through the Termination Date, the Issuer shall pay to the Agent (or its designees) a non-refundable administrative fee equal to $12,500 per year. 
  
 All fees paid pursuant to this Section 2.04 shall be fully earned and non-refundable
as of the date of payment thereof. 
  
 Section 2.05
Intentionally omitted. 
  
 Section 2.06 Payments and
Computations on the Notes. 
  
 (a) The Issuer shall make each
payment hereunder and under the Notes, irrespective of any right of counterclaim or set-off (except as otherwise provided herein), not later than 11:00 A.M. (New York City time) on the day when due in U.S. dollars to each Note Purchaser at the Note
Purchaser’s account in same day funds, with payments being received by any Note Purchaser after such time being deemed to have been received on the next succeeding Business Day. 
  
 (b) All computations of interest and fees on the Notes shall be made by the Agent on the basis of a year of 360 days for the
actual number of days (including the first day but excluding the last day) occurring in the period for which such interest, fees or commissions are payable. Each determination by the Agent of an interest rate, fee or commission hereunder shall be
conclusive and binding for all purposes, absent manifest error. 
  
 (c) Whenever any payment hereunder or under the Notes shall be stated to be due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in
the computation of payment of interest or commitment fee, as the case may be; provided, however, that, if such extension would cause payment of interest or principal to be made in the next following calendar month, such payment shall be made
on the next preceding Business Day. 
  
 (d) Subject to Section
2.06(e), payments of principal, Prepayment Fees, if any, and interest becoming due and payable on the Notes shall be made in New York, New York at the principal office of the Bank of New York in such jurisdiction. The Issuer may at any time, by
notice to each Note Purchaser and the Agent, change the place of payment of the notes so long as such place of payment shall be either the principal office of the Issuer in such jurisdiction or the principal office of a bank or trust in such
jurisdiction. 
  

 28 

 (e) So long as any Note Purchaser or its nominee shall be the holder of any Note, and notwithstanding
anything contained in such Note or Section 2.06(d) to the contrary, the Issuer will pay all sums becoming due on such Note for principal, Prepayment Fees, if any, and interest by the method and at the Principal Lending Office address
specified for such purpose opposite such Note Purchaser’s name in Schedule I, or by such other method or at such other address as such Note Purchaser shall have from time to time specified to the Issuer in writing for such purpose,
without the presentation or surrender of such Note or the making of any notation thereon, except that upon written request of the Issuer made concurrently with or reasonably promptly after payment or prepayment in full of any Note, such Note
Purchaser shall surrender such Note for cancellation, reasonably promptly after any such request, to the Issuer at its principal executive office or at the place of payment most recently designated by the Issuer pursuant to Section 2.06(d).
Prior to any sale or other disposition of any Note held by a Note Purchaser or its nominee such Note Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and the last date to which interest has been paid
thereon or surrender such Note to the Issuer in exchange for a new Note or Notes pursuant to Sections 2.12 and 2.13. 
  
 Section 2.07 Taxes. 
  
 (a) Any and all payments by or for the account of any Obligor hereunder, or in respect of the Notes or any other Note Purchase Document, shall be made
free and clear of and without deduction for any and all present or future taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Note Purchaser, the Agent and the
Collateral Agent, taxes that are imposed on its overall net income by the United States and taxes that are imposed on its overall net income (and franchise taxes imposed in lieu thereof) by the state or foreign jurisdiction under the laws of which
such Note Purchaser, the Agent or the Collateral Agent, as the case may be, is organized or any political subdivision thereof and, in the case of each Note Purchaser, taxes that are imposed on its overall net income (and franchise taxes imposed in
lieu thereof) by the state or foreign jurisdiction of such Note Purchaser’s Applicable Lending Office or any political subdivision thereof (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in
respect of payments hereunder or under the Notes being hereinafter referred to as “Taxes”). If an Obligor shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder or under any Note or other Note
Purchase Documents to Note Purchaser, the Agent, or the Collateral Agent (i) the sum payable by such Obligor shall be increased as may be necessary so that after such Obligor, the Agent and the Collateral Agent have made all required deductions
(including deductions applicable to additional sums payable under this Section 2.07) such Note Purchaser, the Agent or the Collateral Agent, as the case may be, receives an amount equal to the sum it would have received had no such deductions
been made, (ii) such Obligor shall make all such deductions and (iii) such Obligor shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. 
  
 (b) In addition, each Obligor shall pay any present or future stamp,
documentary, excise, property or similar taxes, charges or levies that arise from any payment made hereunder or under the Notes or other Note Purchase Documents or from the execution, delivery or registration of, performance under, or otherwise with
respect to, this Agreement, the Notes or any other Note Purchase Document (“Other Taxes”). 
  

 29 

 (c) Each Obligor shall indemnify each Note Purchaser, the Agent and the Collateral Agent for and hold
them harmless against the full amount of Taxes and Other Taxes, and for the full amount of taxes of any kind imposed by any jurisdiction on amounts payable under this Section 2.07, imposed on or paid by such Note Purchaser, the Agent or the
Collateral Agent (as the case may be) and any liability (including penalties, additions to tax, interest and expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30 days from the date such Note Purchaser,
the Agent or the Collateral Agent (as the case may be) makes written demand therefor. 
  
 (d) Within 30 days after the date of any payment of Taxes, the relevant Obligor shall furnish to the Agent, at its address referred to in Section 10.02, the original or a certified copy of a receipt evidencing
such payment. In the case of any payment hereunder or under the Notes or other Note Purchase Documents by or on behalf of such Obligor through an account or branch outside the United States or by or on behalf of such Obligor by a payor that is not a
United States person, if such Obligor determines that no Taxes are payable in respect thereof, such Obligor shall furnish, or shall cause such payor to furnish, to the Agent, at such address, an opinion of counsel acceptable to the Agent stating
that such payment is exempt from Taxes. For purposes of subsections (d) and (e) of this Section 2.07, the terms “United States” and “United States person” shall have the meanings specified in Section 7701 of
the Internal Revenue Code. 
  
 (e) Each Note Purchaser organized
under the laws of a jurisdiction outside the United States shall, on or prior to the date of its execution and delivery of this Agreement in the case of each initial Note Purchaser, as the case may be, and on the date of the Assignment and
Acceptance pursuant to which it becomes a Note Purchaser in the case of each other Note Purchaser, and from time to time thereafter as requested in writing by the relevant Obligor (but only so long thereafter as such Note Purchaser remains lawfully
able to do so), provide each of the Agent and each Obligor with two original Internal Revenue Service forms W-8ECI or W-8 or W-8BEN (and, if applicable to the exemption claimed by a Note Purchaser that delivers a form W-8 or W-8BEN, a certificate
representing that such Note Purchaser is not a “bank” for purposes of Section 881(c) of the Internal Revenue Code, is not a 10-percent shareholder, within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code, of the Obligor and
is not a controlled foreign corporation related to the Obligor, within the meaning of Section 864(d)(4) of the Internal Revenue Code), as appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying that such
Note Purchaser is exempt from or entitled to a reduced rate of United States withholding tax on payments pursuant to this Agreement or the Notes (or, in the case of a Note Purchaser providing a form W-8 or W-8BEN, certifying that such Note Purchaser
is a foreign corporation, partnership, estate or trust). If the forms provided by a Note Purchaser at the time such Note Purchaser first becomes a party to this Agreement indicate a United States interest withholding tax rate in excess of zero,
withholding tax at such rate shall be considered excluded from Taxes unless and until such Note Purchaser provides the appropriate forms certifying that a lesser rate applies, whereupon withholding tax at such lesser rate only shall be considered
excluded from Taxes for periods governed by such forms; provided, however, that if, at the effective date of the Assignment and Acceptance pursuant to which a Note Purchaser becomes a party to this Agreement, the Note Purchaser assignor was
entitled to payments under subsection (a) of this Section 2.07 in respect of United States withholding tax with respect to interest paid at such date, then, to such extent, the term Taxes shall include (in 
  

 30 

 addition to withholding taxes that may be imposed in the future or other amounts otherwise includable in Taxes) United
States withholding tax, if any, applicable with respect to the Note Purchaser assignee on such date. If any form or document referred to in this subsection (e) requires the disclosure of information, other than information necessary to compute the
tax payable and information required on the date hereof by Internal Revenue Service form W-8, W-8BEN or W-8ECI (or the related certificate described above), that the Note Purchaser reasonably considers to be confidential, the Note Purchaser shall
give notice thereof to the Obligor and shall not be obligated to include in such form or document such confidential information. 
  
 (f) For any period with respect to which a Note Purchaser has failed to provide the relevant Obligor with the appropriate form described in subsection (e)
above (other than if such failure is due to a change in law occurring after the date on which a form originally was required to be provided or if such form otherwise is not required under subsection (e) above), such Note Purchaser shall not
be entitled to indemnification under subsection (a) or (c) of this Section 2.07 with respect to Taxes imposed by reason of such failure; provided, however, that should a Note Purchaser become subject to Taxes because of its
failure to deliver a form required hereunder, the relevant Obligor shall take such steps as such Note Purchaser shall reasonably request to assist such Note Purchaser to recover such Taxes. 
  
 (g) The Obligor may replace any Note Purchaser that has requested additional
amounts under subsection (a) of this Section 2.07, by written notice to such Note Purchaser and the Agent and identifying one or more persons each of which shall be reasonably acceptable to the Agent (each, a “Replacement Note
Purchaser”, and collectively, the “Replacement Note Purchasers”) to replace such Note Purchaser (the “Replaced Note Purchaser”); provided, that (i) the notice from such Obligor to the Replaced Note
Purchaser and the Agent provided for herein above shall specify an effective date for such replacement (the “Replacement Closing Date”), which shall be at least five (5) Business Days after such notice is given and (ii) as of the
relevant Replacement Closing Date, each Replacement Note Purchaser shall enter into an Assignment and Acceptance with the Replaced Note Purchaser, pursuant to which such Replacement Note Purchasers collectively shall acquire, in such proportion
among them as they may agree with such Obligor and the Agent, all (but not less than all) of the outstanding Notes of the Replaced Note Purchaser, and, in connection therewith, shall pay to the Replaced Note Purchaser, as the purchase price in
respect thereof, an amount equal to the sum as of the Replacement Closing Date, without duplication, of (x) the unpaid principal amount of, and all accrued but unpaid interest on, all outstanding Notes of the Replaced Note Purchaser and (y) the
Replaced Note Purchaser’s ratable share of all accrued but unpaid fees owing to the Replaced Note Purchaser hereunder. 
  
 Section 2.08 Sharing of Payments, Etc. If any Note Purchaser shall obtain at any time any payment (whether voluntary, involuntary, through the
exercise of any right of set-off, or otherwise, other than as a result of an assignment pursuant to Section 2.12) (a) on account of Obligations due and payable to such Note Purchaser hereunder and under the Notes at such time in excess of its
ratable share (according to the proportion of (i) the amount of such Obligations due and payable to such Note Purchaser at such time to (ii) the aggregate amount of the Obligations due and payable to all Note Purchasers hereunder and under the Notes
at such time) of payments on account of the Obligations due and payable to all Note Purchasers hereunder and under the Notes at such time obtained by all the Note Purchasers at such time or 
  

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 (b) on account of Obligations owing (but not due and payable) to such Note Purchaser hereunder and under the Notes at
such time in excess of its ratable share (according to the proportion of (i) the amount of such Obligations owing to such Note Purchaser at such time to (ii) the aggregate amount of the Obligations owing (but not due and payable) to all Note
Purchasers hereunder and under the Notes at such time) of payments on account of the Obligations owing (but not due and payable) to all Note Purchasers hereunder and under the Notes at such time obtained by all of the Note Purchasers at such time,
such Note Purchaser shall forthwith notify the Issuer and the Agent and promptly return such overpayment to the Issuer to be properly applied. 
  
 Section 2.09 Prepayments. 
  
 (a) Mandatory Prepayments. 
  
 (i) The Issuer shall, within two Business Days after the date of receipt of Net Cash Proceeds in excess of $5,000,000 in the aggregate in
any fiscal year by any Obligor from (A) the sale, lease, transfer or other disposition of any assets of any Obligor or any Subsidiary of an Obligor (other than leases in the ordinary course of business or any sale, lease, transfer or other
disposition of assets pursuant to clause (i), (ii), (iii), (v), (vi), (vii) or (ix) of Section 5.02(e)) prepay an aggregate principal amount of the Notes equal to 100% of the amount of such Net Cash Proceeds; provided, that no portion
of the Net Cash Proceeds retained by the Obligors pursuant to this subsection (i) shall be used by any Obligor in connection with any merger with any Person or acquisition of assets of any Person (other than assets acquired in the ordinary course of
such Obligors’ business); and (B) any Extraordinary Receipt received by, or paid to, or for the account of, any Obligor or any Subsidiary of an Obligor and not otherwise included in clause (A) above, prepay an aggregate principal amount of the
Notes in an amount equal to 100% of the amount of such Net Cash Proceeds. 
  
 (ii) The Issuer shall, within two Business Days after the date of receipt thereof, prepay the Notes in an amount equal to 100% of the
proceeds, if any, received from an Obligor’s issuance of Debt, other than Debt permitted to be Incurred under this Agreement that is Incurred pursuant to the terms of (A) the Note Purchase Documents, (B) the Second Lien Documents, or (C) the
New Third Lien Documents. 
  
 All mandatory prepayments under this Section
2.09 shall be made together with accrued interest to the date of such prepayment on the principal amount prepaid, shall include the Prepayment Fee set forth in Section 2.10 for the applicable period, and shall be applied to each Note
Purchaser in accordance with Section 9.01. 
  
 (b)
Optional Prepayment. The Notes shall be pre-payable at the option of the Issuer, in whole or in part, in increments of not less than $5,000,000, at any time at a prepayment price determined in accordance with the schedule set forth in
Section 2.10. If the Notes are prepaid in part, prepayment on account of the Notes shall be allocated in accordance with Section 9.01. 
  
 Section 2.10 Prepayment Price Schedule. Any Notes to be pre-paid in accordance with Section 2.09 shall be prepaid at a price determined in
accordance with the 
  

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 following schedule if pre-paid during the twelve-month period beginning on July 31 of the years indicated below (or as
otherwise indicated): 
  

			
	 Year

	  	Prepayment Price
As a %
of Principal
Amount

	 2005
	  	108%
	 2006
	  	105%
	 2007
	  	103%
	 July 31, 2008, through March 31, 2009
	  	101%
	 April 1, 2009, through the Termination Date
	  	100%

  
 The portion of the
prepayment price at which the Notes must be prepaid (as set forth above) in excess of the principal amount thereof is referred to as the “Prepayment Fee”. If the Obligations are accelerated for any reason, including, without
limitation, because of default (including acceleration by operation of law or otherwise), the Prepayment Fee set forth above shall also be due and payable as though such indebtedness was voluntarily prepaid and shall constitute part of the
Obligations in view of the impracticability and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of each Note Purchaser’s lost profits as a result thereof. The Prepayment
Fee shall be presumed to be the liquidated damages sustained by each Note Purchaser as the result of such early termination and the Issuer agrees that payment of the Prepayment Fee is reasonable under the circumstances currently existing. THE ISSUER
EXPRESSLY WAIVES THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW WHICH PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING PREPAYMENT FEE (WHETHER OR NOT DEEMED TO BE LIQUIDATED DAMAGES). 
  
 The Issuer expressly agrees that: (i) the Prepayment Fee provided for herein
is reasonable; (ii) the Prepayment Fee shall be payable notwithstanding the then prevailing market rates at the time payment is made; (iii) there has been a course of conduct between Note Purchasers and the Issuer giving specific consideration in
this transaction for such agreement to pay the Prepayment Fee; and (iv) the Issuer shall be estopped hereafter from claiming differently than as agreed to in this paragraph. The Issuer expressly acknowledges that its agreement to pay the Prepayment
Fee to Note Purchasers as herein described is a material inducement to Note Purchasers to purchase the Notes. 
  
 Section 2.11 Registration of Notes. The Issuer shall keep at its principal executive office a register for the registration and registration of
transfers of Notes. The name, email address and address of each holder of one or more Notes, each transfer thereof and the 
  

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 name, email address and address of each Transferee of one or more Notes shall be registered in such register. Prior to
due presentment for registration of transfer, the Person in whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof for all purposes hereof, and the Issuer shall not be affected by any notice or knowledge
to the contrary. The Issuer shall give to the Agent promptly upon request therefor, a complete and correct copy of the names, addresses, and email addresses of contact persons for all registered Note Purchasers. 
  
 Section 2.12 Transfer and Exchange of Notes. Notwithstanding anything
else herein to the contrary, any Note Purchaser, may from time to time, at its option, sell, assign, transfer, negotiate or otherwise dispose of all or a portion of one or more of its Notes (including the Note Purchaser’s interest in this
Agreement and the other Note Purchase Documents) to any Eligible Assignee. In the event of any such sale, transfer or other disposition, the Note Purchaser and relevant Transferee shall execute and deliver to the Agent and the Issuer an Assignment
and Acceptance Agreement evidencing such sale, assignment, transfer or other disposition and the Issuer shall thereafter promptly register the Transferee thereof as the registered holder of the transferred Notes (provided, that any such Transferee
shall be deemed a registered holder of the applicable Notes and a “Transferee” hereunder in the event of the Issuer’s failure to so register any such Transferee after it has received written notice of any such transfer) and
Schedule I shall be automatically amended to reflect such transfer and any new Transferee and Notes held thereby. Upon surrender of any Note at the principal executive office of the Issuer for registration of transfer or exchange (and in the
case of a surrender for registration of transfer, duly endorsed or accompanied by a written instrument of transfer duly executed by the registered holder of such Note or his attorney duly authorized in writing and accompanied by the address for
notices of each transferee of such Note or part thereof), the Issuer shall execute and deliver, at the Issuer’s expense (except as provided below), one or more new Notes (as requested by the holder thereof) in exchange therefor, in an aggregate
principal amount equal to the unpaid principal amount of the surrendered Note. Each such new Note shall be payable to such Person as such holder may request and shall be substantially in the form of Exhibit A. Each such new Note shall be
dated and bear interest from the date to which interest shall have been paid on the surrendered Note or dated the date of the surrendered Note if no interest shall have been paid thereon. The Issuer may require payment of a sum sufficient to cover
any stamp tax or governmental charge imposed in respect of any such transfer of Notes. Notes shall not be transferred in denominations of less than (i) $400,000 at any time within five Business Days of the Closing Date, and (ii) $1,000,000 at any
time thereafter, provided that if necessary to enable the registration of transfer by a holder of its entire holding of Notes, one Note may be in a denomination of less than $1,000,000, provided further that Notes may be transferred in any
denomination from a group of Affiliated holders to any Eligible Assignee or group of Eligible Assignees so long as (i) in respect of a transfer to a group of Eligible Assignees, such Eligible Assignees shall be Affiliates of each other, and (ii) the
aggregate principal amount of Notes concurrently transferred shall be $1,000,000 or more. Any Transferee, by its acceptance of a Note registered in its name (or the name of its nominee), shall be deemed to have made the representations set forth in
Section 4.02. 
  
 Section 2.13 Replacement of Notes.
Upon receipt by the Issuer of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of 
  

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 any Note (which evidence shall be, in the case of an Institutional Investor, notice from such Institutional Investor of
such ownership and such loss, theft, destruction or mutilation), and 
  
 (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it (provided that if the holder of such Note is, or is a nominee for, an original Note Purchaser or another holder of a Note with a minimum net worth of
at least $10,000,000 in excess of the outstanding principal amount of such Note, such Person’s own unsecured agreement of indemnity shall be deemed to be satisfactory), or 
  
 (b) in the case of mutilation, upon surrender and cancellation thereof, the Issuer at its own expense shall execute and
deliver, in lieu thereof, a new Note, dated and bearing interest from the date to which interest shall have been paid on such lost, stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated Note if no
interest shall have been paid thereon. 
  
 ARTICLE III.
CONDITIONS OF NOTE PURCHASE 
  
 Section 3.01 Conditions
Precedent to the Closing Date. The Closing is subject to the satisfaction of the following conditions precedent: 
  
 (a) The Closing shall occur on or before July 31, 2005. 
  
 (b) The Agent shall have received the following, each dated the Closing Date (unless otherwise specified), in form and substance satisfactory to the Agent
(unless otherwise specified) and (except for the Notes) in sufficient copies for each Note Purchaser: 
  
 (i) The Notes payable to the order of the Note Purchasers. 
  
 (ii) A security agreement in substantially the form of Exhibit D hereto (together with each other
security agreement and security agreement supplement delivered pursuant to Section 5.01(j), the “Security Agreement”), duly executed by each Obligor, together with: 
  
 (A) certificates representing the Pledged Shares referred to
therein accompanied by undated stock powers executed in blank and instruments evidencing the Pledged Debt indorsed in blank, 
  
 (B) acknowledgment copies or stamped receipt copies of proper financing statements, duly filed on or before the Closing Date under the
Uniform Commercial Code of all jurisdictions that the Agent may reasonably deem necessary or desirable in order to perfect and protect the first priority liens and security interests created under the Security Agreement, covering the Collateral
described in the Security Agreement, 
  
 (C)
completed requests for information, dated on or before the Closing Date, listing the financing statements referred to in clause (B) above and all other effective financing statements filed in the jurisdictions referred to in clause (B) above that
name any Obligor as debtor, together with copies of such other financing statements, 
  

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 (D) evidence of the completion of all other recordings and filings of or with respect to
the Security Agreement that the Agent may reasonably deem necessary or desirable in order to perfect and protect the Liens created thereby, 
  
 (E) copies of the Assigned Agreements referred to in the Security Agreement, and 
  
 (F) evidence that all other action that the Agent may deem
reasonably necessary or desirable in order to perfect and protect the first priority liens and security interests created under the Security Agreement has been taken (including, without limitation, receipt of duly executed payoff letters, UCC-3
termination statements, landlords’, mortgagees’ and bailees’ waiver and consent agreements and account control and cash management agreements in form and substance satisfactory to the Agent). 
  
 (iii) The Intercreditor and Subordination Agreements in
substantially the form of Exhibit E hereto, duly executed by each of the parties thereto. 
  
 (iv) Certified copies of the resolutions of the Board of Directors of each Obligor approving the Transactions and each Note Purchase
Document to which it is or is to be a party, and of all documents evidencing other necessary corporate action with respect to the Transactions and each Note Purchase Document to which it is or is to be a party. 
  
 (v) A copy of a certificate of the Secretary of State of the
jurisdiction of incorporation of each Obligor, dated reasonably near the date of the Closing Date, certifying (A) as to a true and correct copy of the charter of such Obligor and each amendment thereto on file in such Secretary’s office and (B)
that (1) such amendments are the only amendments to such Obligor’s charter on file in such Secretary’s office, (2) to the extent that the Secretary of State of the applicable jurisdiction of incorporation provides such a certification,
such Obligor has paid all franchise taxes to the date of such certificate and (C) such Obligor is duly incorporated and in good standing or presently subsisting under the laws of the State of the jurisdiction of its incorporation. 
  
 (vi) A copy of a certificate of the Secretary of State in
each jurisdiction in which each Obligor is qualified to do business, dated reasonably near the date of the Closing Date, stating that such Obligor is duly qualified and in good standing as a foreign corporation in such State and has filed all annual
reports required to be filed to the date of such certificate except where the failure to be so qualified and in good standing does not have a Material Adverse Effect. 
  
 (vii) A certificate of each Obligor, signed on behalf of such Obligor by its President or a Vice President
and its Secretary or any Assistant Secretary, dated the Closing Date (the statements made in which certificate shall be true on and as of the 
  

 36 

 Closing Date), certifying as to (A) the absence of any amendments to the charter of such Obligor since
the date of the Secretary of State’s certificate referred to in Section 3.01(b)(vi), (B) a true and correct copy of the bylaws of such Obligor as in effect on the date on which the resolutions referred to in Section 3.01(b)(iv)
were adopted and on the Closing Date, (C) the due incorporation and good standing or valid existence of such Obligor as a corporation organized under the laws of the jurisdiction of its incorporation, and the absence of any proceeding for the
dissolution or liquidation of such Obligor, (D) the truth of the representations and warranties contained in the Note Purchase Documents as though made on and as of the Closing Date, (E) the absence of any event occurring and continuing, or
resulting from entering into this Agreement, that constitutes a Default and (F) the absence of any event occurring and continuing that constitutes a Default (as defined in the Third Amended ITCD Credit Agreement) under the Third Amended ITCD Credit
Agreement or a statement as to such Default and a reasonably detailed description thereof. 
  
 (viii) A certificate of the Secretary or an Assistant Secretary of each Obligor certifying the names and true signatures of the officers
of such Obligor authorized to sign each Note Purchase Document to which it is or is to be a party and the other documents to be delivered hereunder and thereunder. 
  
 (ix) Evidence of insurance naming the Collateral Agent as additional insured and loss payee with such
responsible and reputable insurance companies or associations and evidence of directors and officers’ liability insurance naming the individuals of the Agent who are elected to the board of directors of the Parent as additional insureds and
loss payees with such responsible and reputable insurance companies or associations. 
  
 (x) Favorable opinions of counsel for the Obligors in form and substance reasonably satisfactory to the Agent, in the form of Exhibit
F hereto and as to such other matters as any Note Purchaser through the Agent may reasonably request. 
  
 (xi) Such other certificates and documents as the Agent may reasonably request. 
  
 (xii) (A) American Land Title Association Extended Coverage
mortgagee title insurance policies or unconditional commitments therefor (the “Closing Date Mortgage Policies”) issued by the Title Company with respect each of the real property assets listed in Schedule 4.01(w) that shall
be subject to a Closing Date Mortgage (each, a “Closing Date Mortgaged Property” and, collectively, the “Closing Date Mortgaged Properties”), in amounts not less than the respective amounts designated therein with
respect to any particular Closing Date Mortgaged Property, insuring fee simple title to, or a valid leasehold interest in, each such Closing Date Mortgaged Property vested in such Obligor and assuring the Collateral Agent that the applicable Closing
Date Mortgages create valid and enforceable first priority mortgage Liens on the respective Closing Date Mortgaged Properties encumbered thereby which Closing Date Mortgage Policies (1) shall include an endorsement for mechanics’ liens and for
any other matters reasonably requested by the Collateral Agent and (2) shall provide for 
  

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 affirmative insurance and such reinsurance as the Collateral Agent may reasonably request, all of the
foregoing in form and substance reasonably satisfactory to the Collateral Agent; and (B) evidence satisfactory to the Collateral Agent that such Obligor has (1) delivered to the Title Company all certificates and affidavits required by the Title
Company in connection with the issuance of the Closing Date Mortgage Policies and (2) paid to the Title Company all expenses and premiums of the Title Company in connection with the issuance of the Closing Date Mortgage Policies and to the
appropriate governmental authorities all recording and stamp taxes (including mortgage recording and intangible taxes) payable in connection with recording the Closing Date Mortgages in the appropriate real estate records. 
  
 (xiii) With respect to each Closing Date Mortgaged Property,
a title report issued by the Title Company with respect thereto, dated not more than 30 days prior to the Closing Date and satisfactory in form and substance to the Collateral Agent. 
  
 (xiv) No Event of Default or event that, with notice and/or the passage of time, could constitute, an Event
of Default, shall have occurred. 
  
 (xv) the
Obligors shall have entered into the Mortgages (the “Closing Date Mortgages”), in form and substance reasonably acceptable to the Collateral Agent, as the Collateral Agent may deem necessary or desirable in order to ensure the grant
of a security interest in the real property Collateral covered thereby in order to secure the full amount of the Obligations. 
  
 (c) There shall exist no action, suit, investigation, litigation or proceeding affecting any Obligor or any of its Subsidiaries pending or threatened
before any court, governmental agency or arbitrator that could reasonably be expected to have a Material Adverse Effect other than the matters described on Schedule 4.01(f) hereto (the “Disclosed Litigation”). 
  
 (d) All governmental and third party consents and approvals set forth on Part
I of Schedule 4.01(d) in connection with the Transactions shall have been obtained (without the imposition of any conditions that are not reasonably acceptable to the Note Purchasers) and shall remain in effect (other than any consents and
approvals the absence of which, either individually or in the aggregate, would not have a Material Adverse Effect); all applicable waiting periods in connection with the Transactions shall have expired without any action being taken by any competent
authority (other than any action which either individually or in the aggregate with all such actions would not reasonably be expected to have a Material Adverse Effect), and no law or regulation shall be applicable in the reasonable judgment of the
Note Purchasers in each case that restrains, prevents or imposes materially adverse conditions upon the Transactions or the rights of the Obligors or their Subsidiaries freely to transfer or otherwise dispose of, or to create any Lien on, any
properties now owned or hereafter acquired by any of them. 
  
 (e)
All Pre-Closing Date Information shall be true, correct and complete in all material aspects as of the dates specified therein and no additional information shall have come to the attention of the Obligors that could reasonably be expected to have a
Material Adverse Effect. 
  

 38 

 (f) The Issuer shall have paid (or made provision therefor in a manner reasonably satisfactory to the
Agent) (i) all accrued fees and out-of-pocket expenses of the Agents and (ii) the fees set forth in Section 2.05 (including the accrued reasonable and documented fees and expenses of legal counsel and financial advisors, including Milbank,
Tweed, Hadley & McCloy LLP and Swidler Berlin LLP). 
  
 (g)
The Note Purchasers shall be reasonably satisfied that (i) the Parent and its Subsidiaries shall be able to meet their respective obligations under all employee and retiree welfare plans, (ii) the employee benefit plans of the Parent and its ERISA
Affiliates are, in all material respects, funded in accordance with the minimum statutory requirements, (iii) no “reportable event” (as defined in ERISA, but excluding events for which reporting has been waived) has occurred as to any such
employee benefit plan and (iv) no termination of, or withdrawal from, any such employee benefit plan has occurred or is contemplated that could reasonably be expected to result in a material liability. 
  
 (h) The Third Amended ITCD Credit Agreement shall have been extinguished and
all security interests released. 
  
 (i) The Second Lien Lenders
shall have approved this Agreement which approval shall be in form and substance reasonably acceptable to the Note Purchasers. 
  
 (j) The Amended Second Lien Credit Agreement shall have been amended to the reasonable satisfaction of the Agent to permit the issuance of the Notes
hereunder and to incorporate other changes related to the transactions contemplated hereby. 
  
 (k) The Original Third Lien Credit Agreement shall have been amended and restated and the relevant parties shall have executed and delivered the New Third Lien Documents, in form and substance reasonably acceptable to
the Note Purchasers, and the New Third Lien Lenders shall have advanced to the Obligors an aggregate principal amount of not less than $30,000,000 pursuant to the New Third Lien Documents. 
  
 (l) The obligations under the Original Third Lien Credit Agreement shall have
been exchanged for New Third Lien Notes pursuant to the Exchange Agreement and no amount of New Third Lien Notes greater than the sum of (x) $50,000,000 plus (y) the aggregate amount of capitalized PIK interest on the Existing Third Lien Notes
through the Closing Date, shall be outstanding immediately after the Closing. 
  
 (m) The parties shall have executed and delivered the Warrants, in form and substance reasonably acceptable to the Note Purchasers and registered in such names as shall be satisfactory to the New Third Lien Lenders,
and the issuance of such Warrants shall not have triggered any preemptive rights of holders of the Obligors’ outstanding securities, or such rights shall have been waived to the satisfaction of the Note Purchasers. 
  
 (n) The Agent shall have received the unaudited Consolidated balance sheet of
the Obligors as at March 31, 2005, and the related Consolidated statement of income and Consolidated statement of cash flows of the Obligors for the month then ended and the Projections certified by the Chief Executive Officer and Chief Financial
Officer of the Parent as having been prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the conditions existing at the time of delivery of such information. 
  

 39 

 (o) There shall have been no Material Adverse Change since December 31, 2004, it being understood that
the Defaults or Events of Default set forth on Schedule VI hereto shall not be deemed to have a Material Adverse Change. 
  
 (p) The Obligors shall have delivered to the Agent favorable opinions, in form and substance satisfactory to the Agent, of counsel to those Subsidiary
Guarantors organized in Alabama, North Carolina and Virginia. 
  
 (q) The purchase of Notes by the Note Purchasers shall (i) be permitted by the laws and regulations of each jurisdiction to which the Note Purchasers are subject, (ii) not violate any Applicable Law (including, without limitation,
Regulation U, T or X of the Board of Governors of the Federal Reserve System), (iii) not require registration or qualification of the Notes under any Applicable Law (including, without limitation, any applicable federal or state securities laws),
and (iv) not subject the Note Purchasers to any tax, penalty or liability under or pursuant to any Applicable Law which was not in effect on the date hereof. If requested by the Note Purchasers or the Agent, the Note Purchasers or the Agent shall
have received an officer’s certificate certifying as to such matters of fact as the Note Purchasers or the Agent may reasonably specify to enable the Note Purchasers or the Agent to determine whether such purchase is permitted. 
  
 (r) The Agent shall have received an officer’s certificate duly executed
by the Chief Financial Officer of the Issuer in substantially the form of Exhibit I hereto (a “Solvency Certificate”) (i) to the effect that the Parent and its Subsidiaries shall be Solvent upon the consummation of the
transactions contemplated herein and in the other Note Purchase Documents; and (ii) containing such other statements with respect to the solvency of the Parent and its Subsidiaries and matters related thereto as the Agent or the Note Purchasers
shall request. 
  
 ARTICLE IV. REPRESENTATIONS AND
WARRANTIES 
  
 Section 4.01 Representations and Warranties
of the Obligors. The Obligors represent and warrant, jointly and severally, to the Agents and the Note Purchasers as follows as of the date hereof and the Closing Date: 
  
 (a) Each Obligor and each of its respective Subsidiaries (i) is a corporation duly organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation, (ii) is duly qualified and in good standing as a foreign corporation (except as set forth on Schedule 4.01(a)(ii) hereto) in each other jurisdiction in which it owns or leases
property or in which the conduct of its business requires it to so qualify or be licensed except where the failure to so qualify or be licensed would not be reasonably likely to have a Material Adverse Effect and (iii) has all requisite corporate
power and authority to own or lease and operate its properties and to carry on its business as now conducted and as currently proposed to be conducted. All of the outstanding Equity Interests in the Issuer have been duly authorized, validly issued,
are fully paid and non-assessable and are owned by the Parent free and clear of all Liens, except those created under the Note Purchase Documents or as set forth on Schedule 4.01(v). 
  

 40 

 (b) Set forth on Schedule 4.01(b) hereto is a complete and accurate list of all Subsidiaries of
each Obligor as of the Closing Date showing as of the date hereof (as to each such Subsidiary) the jurisdiction of its incorporation, its directors and senior officers, the number of shares of each class of its Equity Interests authorized, and the
number outstanding, on the date hereof and the percentage of each such class of its Equity Interests owned (directly or indirectly) by such Obligor and the number of shares covered by all outstanding options, warrants, rights of conversion or
purchase and similar rights at the date hereof. All of the outstanding Equity Interests in each Obligor’s Subsidiaries have been duly authorized, validly issued, are fully paid and non-assessable and are owned by such Obligor or one or more of
its Subsidiaries free and clear of all Liens, except those created under the Note Purchase Documents or as set forth on Schedule 4.01(v). 
  
 (c) The execution, delivery and performance by each Obligor of each Note Purchase Document to which it is or is to be a party, and the consummation of the
Transactions, are within such Obligor’s corporate powers, have been duly authorized by all necessary corporate action, and do not (i) contravene such Obligor’s charter or bylaws, (ii) violate any law, rule, regulation (including, without
limitation, Regulation X of the Board of Governors of the Federal Reserve System), order, writ, judgment, injunction, decree, determination or award, (iii) conflict with or result in the breach of, or constitute a default under, any loan agreement,
indenture, mortgage, deed of trust, or material contract, lease or other instrument binding on or affecting any Obligor, any of its Subsidiaries or any of their properties or (iv) except for the Liens created under the Note Purchase Documents, the
Second Lien Loan Documents and the New Third Lien Documents, result in or require the creation or imposition of any Lien upon or with respect to any of the properties of any Obligor or any of its Subsidiaries. No Obligor or any of its Subsidiaries
is in violation of any such law, rule, regulation, order, writ, judgment, injunction, decree, determination or award or in breach of any such contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument, the violation or
breach of which could be reasonably likely to have a Material Adverse Effect. 
  
 (d) No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or regulatory body (including, without limitation, the FCC or any applicable PUC) or any other third
party is required for (i) the due execution, delivery, recordation, filing or performance by any Obligor of any Note Purchase Document to which it is or is to be a party, or for the consummation of the Transactions or the incurrence of the
Obligations, (ii) the grant or affirmation by any Obligor of the Liens granted by it pursuant to the Collateral Documents, (iii) the perfection or maintenance of the Liens created under the Collateral Documents (including the first priority nature
thereof), or (iv) the exercise by any Agent or any Note Purchaser of its rights under the Note Purchase Documents or the remedies in respect of the Collateral pursuant to the Collateral Documents, except for (A) the authorizations, approvals,
actions, notices and filings listed on Part I of Schedule 4.01(d) hereto, all of which have been duly obtained, taken, given or made and are in full force and effect, (B) authorizations, approvals, actions, notices and filings listed in Part
II of Schedule 4.01(d) hereto, which shall not have been duly obtained, taken, given or made by the Closing Date, but shall be obtained, taken, given or made after the Closing Date in accordance with this Agreement, (C) authorizations,

  

 41 

 approvals, actions, notices and filings listed in Part III of Schedule 4.01(d) hereto, which shall not have been
duly obtained, taken, given or made by the Closing Date and (D) authorizations, approvals, actions, notices and filings which would not have a Material Adverse Effect if not made or obtained. All applicable waiting periods in connection with the
Transactions have expired without any action having been taken by any competent authority restraining, preventing or imposing materially adverse conditions upon the Transactions or the rights of the Obligors or their Subsidiaries freely to transfer
or otherwise dispose of, or to create any Lien on, any properties now owned or hereafter acquired by any of them. 
  
 (e) This Agreement has been, and each other Note Purchase Document when delivered hereunder shall have been, duly executed and delivered by each Obligor
thereto. This Agreement is, and each other Note Purchase Document when delivered hereunder shall be, the legal, valid and binding obligation of each Obligor thereto, enforceable against such Obligor in accordance with its terms. 
  
 (f) There is no action, suit, investigation, litigation or proceeding
affecting any Obligor or any of its Subsidiaries, including any Environmental Action, pending or, to any Obligor’s knowledge, threatened before any court, governmental agency or arbitrator that (i) would alone or when considered in conjunction
with any other actions, suits, investigation, litigation or proceeding affecting any Obligor, be reasonably likely to have a Material Adverse Effect other than the Disclosed Litigation or (ii) purports to affect the legality, validity or
enforceability of any Note Purchase Document or the consummation of Transactions, and there has been no material adverse change in the status, or financial effect on any Obligor or any of its Subsidiaries, of or as a result of the Disclosed
Litigation from that described on Schedule 4.01(f) hereto. 
  
 (g) (i) The (A) audited Consolidated balance sheet of the Obligors as at the year ended December 31, 2004 and (B) the audited related Consolidated statement of income and Consolidated statement of cash flows of the Obligors for the year
then ended, duly certified by the Chief Financial Officer of the Parent, copies of which have been furnished to the Agents and each Note Purchaser, fairly present the Consolidated financial condition of the Obligors, as the case may be, as at such
date and the Consolidated results of operations of the Parent and its Subsidiaries for the period ended on such date, all in accordance with GAAP applied on a consistent basis, and since December 31, 2004 there has been no Material Adverse Change,
it being understood that the events set forth on Schedule 4.01(o) hereto shall not be deemed to constitute a Material Adverse Change. 
  
 (ii) The (A) unaudited Consolidated balance sheet of the Obligors as at the three-months and quarter ended March 31, 2005 and (B) the unaudited related
Consolidated statements of income and Consolidated statements of cash flows of the Obligors for the three months and quarter then ended, copies of which have been furnished to the Agents and each Note Purchaser, fairly present the Consolidated
financial condition of the Obligors, as the case may be, as at such dates and the Consolidated results of operations of the Parent and its Subsidiaries for the periods ended on such dates, all in accordance with GAAP applied on a consistent basis.

  

 42 

 (h) No Obligor has (and shall not have following the funding of the Note Purchase) any Contingent
Obligation, contingent liability or liability for taxes, long-term lease or unusual forward or long-term commitment that, as of the Closing Date, that is not reflected in the audited financial statements referenced in Section 4.01(g) (except
such Contingent Obligations, contingent liabilities or liabilities for taxes, long-term leases or unusual forward or long-term commitment incurred in connection with the Second Lien Loan Documents, the Note Purchase Documents or the New Third Lien
Documents) or the notes thereto and that, in any such case, is material in relation to the business, operations, properties, condition (financial or otherwise) or prospects of the Parent or any of its Subsidiaries. 
  
 (i) The Consolidated balance sheets, income statements and cash flows
statements of the Obligors delivered to the Note Purchasers pursuant to Section 5.03(d) and the unaudited pro forma financial information about the Obligors delivered to the Note Purchasers in the ITC^DeltaCom 2005-2006 Management Plan dated
March 9, 2005 and the ITC^DeltaCom 2005-2007 forecast dated June 2005 (collectively, the “Projections”), were prepared in good faith on the basis of the assumptions stated therein, which assumptions were fair in light of the
conditions existing at the time of delivery of such information, and represented, at the time of delivery, the Obligors’ best estimate of the future financial performance of the Obligors. 
  
 (j) No information, exhibit or report furnished by or on behalf of any
Obligor to any Agent or any Note Purchaser in connection with the negotiation of the Note Purchase Documents or pursuant to the terms of the Note Purchase Documents contained any untrue statement of a material fact or omitted to state a material
fact necessary to make the statements made therein not misleading. 
  
 (k) The Issuer is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Note have been or shall be used to purchase or carry any Margin Stock or to extend credit to
others for the purpose of purchasing or carrying any Margin Stock. 
  
 (l) Neither any Obligor nor any of its Subsidiaries is an “investment company,” or an “affiliated person” of, or “promoter” or “principal underwriter” for, an “investment company,” as such
terms are defined in the Investment Company Act of 1940, as amended. Neither the issuance of any Notes, nor the application of the proceeds or repayment thereof by the Issuer, nor the consummation of the other Transactions, shall violate any
provision of such Act or any rule, regulation or order of the SEC thereunder, in each case assuming the accuracy of the representations and warranties of each Note Purchaser in Section 4.02. 
  
 (m) No Subsidiary is a party to, or otherwise subject to any legal
restriction or any agreement (other than the Note Purchase Documents, the Second Lien Loan Documents and the New Third Lien Documents and customary limitations imposed by Applicable Law) restricting the ability of such Subsidiary to pay dividends
out of profits or make any other similar distributions of profits to the Parent or any of its Subsidiaries that owns outstanding Capital Stock of such Subsidiary. 
  
 (n) The Collateral Documents create a valid first priority security interest in the Collateral, securing the payment of the
Secured Obligations, and at such time as all filings 
  

 43 

 delivered to the Collateral Agent on or before the Closing Date have been duly filed in accordance with the provisions of
the Security Agreement, such first priority security interest shall be perfected. The Obligors are the legal and beneficial owners of the Collateral free and clear of any Lien, except for the Liens and security interests created or permitted under
the Note Purchase Documents. 
  
 (o) Since December 31, 2004, no
event or change has occurred that has resulted in or evidences, either in any case or in the aggregate, a Material Adverse Effect (it being acknowledged that the effect of the events described in Schedule 4.01(o) does not constitute a
Material Adverse Effect). Neither the Parent nor any of its Subsidiaries has directly or indirectly declared, ordered, paid or made, or set apart any sum or property for, any Restricted Payment or agreed to do so except as permitted by Section
5.02(g). 
  
 (p) ERISA Matters. 
  
 (i) Set forth on Schedule 4.01(p) hereto is a
complete and accurate list of all Plans, Multiemployer Plans and Welfare Plans. The Obligors and each of their respective ERISA Affiliates are in compliance with all applicable provisions and requirements of ERISA and the regulations and published
interpretations thereunder with respect to each Plan, and have performed all their obligations under each Plan except where failure to comply or perform would not have a Material Adverse Effect. Each Plan that is intended to qualify under Section
401(a) of the Internal Revenue Code is so qualified. 
  
 (ii) No ERISA Event (x) has occurred and is outstanding or (y) to the Obligors’ knowledge, is reasonably expected to occur, in each case with respect to any Plan. 
  
 (iii) Schedule B (Actuarial Information) to the most recent annual report (Form 5500 Series) for each Plan,
copies of which have been filed with the Internal Revenue Service and furnished to the Note Purchasers, is complete and accurate and fairly presents the funding status of such Plan, and since the date of such Schedule B there has been no material
adverse change in such funding status. 
  
 (iv)
Neither any Obligor nor any ERISA Affiliate has incurred or, to the Obligors’ knowledge, is reasonably expected to incur any Withdrawal Liability exceeding $1,000,000 to any Multiemployer Plan. 
  
 (v) Neither any Obligor nor any ERISA Affiliate has been
notified by the sponsor of a Multiemployer Plan that such Multiemployer Plan is in reorganization or has been terminated, within the meaning of Title IV of ERISA, and no such Multiemployer Plan, to the Issuer’s knowledge, is reasonably expected
to be in reorganization or to be terminated, within the meaning of Title IV of ERISA. 
  
 (q) Environmental. 
  
 (i) The operations and properties of each Obligor and each of its Subsidiaries comply in all material respects with all applicable Environmental Laws and Environmental Permits, and all past non-compliance with such
Environmental Laws and Environmental Permits has been resolved without ongoing obligations or costs. 
  

 44 

 (ii) Each Obligor and each of its Subsidiaries have obtained and maintain in full force
and effect all material Environmental Permits required for their respective operations and the occupancy of their respective facilities, and no actions are pending, or to any Obligor’s knowledge, threatened, to amend, challenge, revoke, cancel,
restrict, terminate or appeal any such Environmental Permits. 
  
 (iii) No circumstances exist that could (A) form the basis of any material Environmental Action against any Obligor or any of its Subsidiaries or any of their current or former properties or facilities or (B) cause
any such properties or facilities to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law. 
  
 (iv) None of the properties or facilities currently or formerly owned or operated by any Obligor or any of its Subsidiaries (A) is listed
or proposed for listing on the NPL or on the CERCLIS or any analogous foreign, state or local list or, to any Obligor’s knowledge, is adjacent to any such property; (B) contain or, to any Obligor’s knowledge, have contained in the past,
any underground or aboveground storage tanks or any surface impoundments, septic tanks, pits, sumps or lagoons in which Hazardous Materials are being or have been treated, stored or disposed, any equipment containing polychlorinated biphenyls, or
any asbestos-containing materials, and (C) has been the location of or are affected by any Hazardous Materials that are or have been released, discharged or disposed of on any such property or facility. 
  
 (v) Neither any Obligor nor any of its Subsidiaries is
undertaking, or has completed, either individually or together with other potentially responsible parties, any investigation or assessment or remedial or response action relating to any actual or threatened release, discharge or disposal of
Hazardous Materials at any site, location or operation, either voluntarily or pursuant to the order of any governmental or regulatory authority or the requirements of any Environmental Law. 
  
 (vi) No Hazardous Materials have been generated, used,
treated, handled, released, disposed or stored at, arranged for disposal or transported to or from, any property currently or formerly owned or operated by any Obligor or any of its Subsidiaries in a manner that could result in material liability to
any Obligor or any of its Subsidiaries. 
  
 (r) Taxes.

  
 (i) Except as set forth in Schedule
4.01(r) hereto, neither any Obligor nor any of its Subsidiaries is party to any tax sharing agreement, 
  
 (ii) (x) all tax returns and all material statements, reports and forms (including estimated tax or information returns) (collectively,
the “Tax Returns”) required to be filed with any taxing authority by, or with respect to, each Obligor and its Subsidiaries have been timely filed in accordance with all applicable laws and, as of time 
  

 45 

 
of filing, each Tax Return was accurate and complete and correctly reflected the facts regarding income, business, assets, operations and the status of each
Obligor and its Subsidiaries; (y) each Obligor and its Subsidiaries has timely paid or made adequate provision for payment of all taxes that are shown as due and payable on Tax Returns that have been so filed or that are otherwise required to be
paid, including without limitation, assessments, interest and penalties (other than taxes which are being contested in good faith and for which adequate reserves are reflected on the financial statements delivered hereunder); and (z) each Obligor
and its Subsidiaries have made adequate provision for all taxes payable by such Obligor and its Subsidiaries for which no Tax Return has yet been filed or which are otherwise due, 
  
 (iii) Set forth on Part I of Schedule 4.01(r) hereto is a complete and accurate list, as of the date
hereof, of each taxable year of each Obligor and each of its Subsidiaries and Affiliates for which Federal income tax returns have been filed and for which the expiration of the applicable statute of limitations for assessment or collection has not
occurred by reason of extension or otherwise (an “Open Year”), 
  
 (iv) The aggregate unpaid amount, as of the date hereof, of adjustments to the Federal income tax liability of each Obligor and each of
its Subsidiaries and Affiliates proposed by the Internal Revenue Service with respect to Open Years does not exceed $35,000. Set forth on Part II of Schedule 4.01(r) hereto is a complete and accurate description, as of the date hereof, of
each such item that separately, for all such Open Years, together with applicable interest and penalties, exceeds $100,000. To the Issuer’s knowledge, no issues have been raised by the Internal Revenue Service in respect of Open Years that, in
the aggregate, could be reasonably likely to have a Material Adverse Effect. 
  
 (v) Except as set forth in Schedule 4.01(r) hereto, the aggregate unpaid amount, as of the date hereof, of adjustments to the state, local and foreign tax liability of each Obligor and its Subsidiaries and
Affiliates proposed by all state, local and foreign taxing authorities (other than amounts arising from adjustments to Federal income tax returns) does not exceed $35,000. No issues have been raised by such taxing authorities that, in the aggregate,
could be reasonably likely to have a Material Adverse Effect. 
  
 (s) Neither the business nor the properties of any Obligor or any of its Subsidiaries have been affected by any fire, explosion, accident, strike, lockout or other labor dispute, drought, storm, hail, earthquake, embargo, act of God or of
the public enemy or other casualty (whether or not covered by insurance) that could be reasonably likely to have a Material Adverse Effect. 
  
 (t) Set forth on Schedule 4.01(t) hereto is a complete and accurate list of all Surviving Debt (after giving pro forma effect to the repayment of
the outstanding Debt issued under the Third Amended ITCD Credit Agreement and the termination of such agreement), showing as of the date hereof the Obligor and the principal amount outstanding thereunder, the maturity date thereof and the
amortization schedule therefor. No Obligor is in default, and no waiver of default is currently in effect, in the performance of any agreements related to, or in the payment of any principal or interest on, any (i) Surviving Debt, (ii) Debt under
the Second Lien 
  

 46 

 
Loan Documents or (iii) Debt under the Original Third Lien Credit Agreement and no event or condition exists with respect to any such Debt that would (A)
require the Obligor thereof to repurchase it or (B) permit (or that with notice or the lapse of time, or both, would permit) one or more Persons to cause such Debt to become due and payable before its stated maturity or before its regularly
scheduled dates of payment. 
  
 (u) Neither Parent nor any of its
Subsidiaries is subject to regulation under the Public Utility Holding Company Act of 1935, the Federal Power Act, the Interstate Commerce Act, the ICC Termination Act, as amended, or the Investment Company Act of 1940. 
  
 (v) Set forth on Schedule 4.01(v) hereto is a complete and accurate
list of all Liens on the property or assets of any Obligor or any of its Subsidiaries, showing as of the date hereof the lienholder thereof, the principal amount of the obligations secured thereby and the property or assets of such Obligor or such
Subsidiary subject thereto. 
  
 (w) Set forth on Schedule
4.01(w) hereto is a complete and accurate list of all real property owned or leased by any Obligor or any of its Subsidiaries, showing as of the date hereof the street address, county or other relevant jurisdiction, state, record owner and gross
book and fair value thereof. Each Obligor or Subsidiary has good, marketable and insurable fee simple title to, or a valid leasehold interest in, such real property, free and clear of all Liens, other than Liens created or permitted by the Note
Purchase Documents. 
  
 (x) Set forth on Schedule 4.01(x)
hereto is a complete and accurate list of all leases of real property under which any Obligor or any of its Subsidiaries is the lessee, showing as of the date hereof the street address, county or other relevant jurisdiction, state, lessor, lessee,
expiration date and annual rental cost thereof. Each agreement listed on Schedule 4.01(x) is in full force and effect and no Obligor has knowledge of any default that has occurred and is continuing thereunder. Each such lease is the legal,
valid and binding obligation of the lessor thereof, enforceable in accordance with its terms. 
  
 (y) Set forth on Schedule 4.01(y) hereto is a complete and accurate list of all Investments held by any Obligor or any of its Subsidiaries on the date hereof, showing as of the date hereof the amount, Obligor
or issuer and maturity, if any, thereof. 
  
 (z) Set forth on
Schedule 4.01(z) hereto is a complete and accurate list of all patents, trademarks, trade names, service marks and copyrights, and all applications therefor and licenses thereof (the “Intellectual Property”), of each Obligor
or any of its Subsidiaries, showing as of the date hereof the jurisdiction in which registered, the registration number, the date of registration and the expiration date. No claim has been asserted and is pending by any Person challenging or
questioning the use of any such Intellectual Property or the validity or effectiveness of any such Intellectual Property, nor does the Parent know of any valid basis for any such claim, except for such claims that in the aggregate could not
reasonably be expected to result in a Material Adverse Effect. The use of such Intellectual Property by the Parent and its Subsidiaries does not infringe on the rights of any Person, except for such claims and infringements that, in the aggregate,
could not reasonably be expected to result in a Material Adverse Effect. 
  

 47 

 (aa) Set forth on Schedule 4.01(aa) hereto is a complete and accurate list of all Material
Contracts of each Obligor and its Subsidiaries involving aggregate consideration payable to or by such Obligor or its Subsidiaries of $20,000,000 or more in any year. Each such Material Contract, together with each other Material Contract, shows as
of the date hereof the parties, subject matter and term thereof. Each such Material Contract, together with each other Material Contract, has been duly authorized, executed and delivered by all parties thereto, has not been amended or otherwise
modified, is in full force and effect and is binding upon and enforceable against all parties thereto in accordance with its terms, and except as set forth on Schedule 4.01(aa) hereto, there exists no default under any Material Contract by
any party thereto. 
  
 (bb) The Warrants and the other Warrant
Documents have been duly authorized by the Parent and, when issued and delivered in accordance with the terms of the New Third Lien Securities Purchase Agreement, the Warrant Agreement and the other Warrant Documents, the Warrants shall be validly
issued and outstanding, and free and clear of any Liens. The Warrant Shares and Conversion Shares shall, when issued, be validly issued and outstanding, fully paid and nonassessable, and free and clear of any Liens. The issuance of the Warrants, the
Warrant Shares and the Conversion Shares shall not be subject to preemptive or other similar rights. 
  
 (cc) The Warrants when issued, and the other Warrant Documents, shall constitute valid and binding agreements of the Parent, in each case enforceable
against the Parent in accordance with their respective terms, except as such enforcement is limited by bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights generally and for limitations imposed by
generally principles of equity. 
  
 (dd) Neither the Parent nor
any Person acting on its behalf (it being understood that neither the Agent nor any Note Purchaser shall be deemed for purposes of this representation and warranty to be acting on behalf of the Parent) has taken or shall take any action (including,
without limitation, any offering of any securities of the Parent under circumstances which would require, under the Securities Act, the integration of such offering with the offering and sale of the Warrants) which might subject the offering,
issuance or sale of the Warrants to the registration requirements of Section 5 of the Securities Act. 
  
 (ee) The authorized capital stock of the Parent consists of 350,000,000 shares of Common Stock, par value $0.01 per share, and 10,000,000 shares of
preferred stock, par value $0.01 per share. As of July 20, 2005, there were outstanding 56,109,205 shares of Common Stock of the Parent, 186,555 shares of Series A Preferred Stock, and 560,855 shares of Series B Preferred Stock. As of the date first
written above on this Agreement, there were outstanding under the ITC^DeltaCom, Inc. Amended and Restated Stock Incentive Plan dated December 18, 2003 (i) stock options to purchase an aggregate of 2,432,407 shares of Common Stock of the Parent, of
which stock options to purchase an aggregate of 1,494,894 shares of Common Stock of the Parent were exercisable, and (ii) restricted stock units for 2,508,500 shares of Common Stock of the Parent, of which restricted stock units for 182,958 shares
of Common Stock were vested. As of July 20, 2005, there were outstanding, currently exercisable warrants to purchase an aggregate of 4,019,850 shares of Common Stock of the Parent. All outstanding shares of capital stock of the Parent have been, and
all shares of Common Stock of the Parent that may be 

  

 48 

 
issued pursuant to the ITC^DeltaCom, Inc. Amended and Restated Stock Incentive Plan shall be, when issued in accordance with the terms of such plan, duly
authorized and validly issued and fully paid and nonassessable. No Subsidiary of the Parent owns any shares of capital stock of the Parent. 
  
 (ff) Intentionally Omitted. 
  
 (gg) Securities Activities. Neither the Parent nor any of its Subsidiaries is engaged principally, or as one of its important activities, in the
business of extending credit for the purpose of purchasing or carrying any Margin Stock. No part of the proceeds from the Notes hereunder shall be used, directly or indirectly, for the purpose of buying or carrying any Margin Stock, or for the
purpose of buying or carrying or trading in any securities under such circumstances as to involve the Parent in a violation of Regulation X of said Board (12 CFR 224) or to involve any broker or dealer in a violation of Regulation T of said Board
(12 CFR 220). Margin Stock does not constitute more than 5% of the value of the consolidated assets of the Parent and its Subsidiaries and the Parent does not have any present intention that Margin Stock shall constitute more than 5% of the value of
such assets. As used in this Section 4.01(ff), the terms “purpose of buying or carrying” shall have the meanings assigned to them in Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221). 
  
 (hh) Certain Fees. Other than fees payable by the Obligors to Miller
Buckfire & Co., LLC in connection herewith and the other financings closing on the Closing Date, no broker’s or finder’s fee or commission shall be payable with respect to this Agreement or any of the other Note Purchase Documents or
any of the transactions contemplated hereby or thereby, and the Parent hereby indemnifies Note Purchasers and the Agents against, and agrees that it shall hold Note Purchasers and the Agents harmless from, any claim, demand or liability for any such
broker’s or finder’s fees alleged to have been incurred in connection herewith or therewith and any expenses (including reasonable fees, expenses and disbursements of counsel) arising in connection with any such claim, demand or liability.

  
 (ii) Employee Matters. There is no strike or work
stoppage in existence or threatened involving the Parent or any of its Subsidiaries that could reasonably be expected to result in a Material Adverse Effect. 
  
 (jj) Solvency. Each Obligor is and, upon the incurrence of any Obligations by such Obligor on any date on which this representation is made, shall
be, Solvent. No transfer of property is being made by the Parent or any of its Subsidiaries and no obligation is being incurred by the Parent or any of its Subsidiaries in connection with the transactions contemplated by this Agreement or the other
Note Purchase Documents with the intent to hinder, delay, or defraud either present or future creditors of the Parent and its Subsidiaries. 
  
 Section 4.02 Representations and Warranties of each Note Purchaser. Each Note Purchaser represents and warrants, severally and not jointly, to the
Obligors, as follows as of the date hereof and the Closing Date: 
  
 (a) Such Note Purchaser is a “Qualified Institutional Buyer,” as defined in Rule 144A under the Securities Act or an “accredited investor” within the meaning of Rule 

  

 49 

 
501(a) of Regulation D under the Securities Act and the Parent Transaction Securities to be acquired by it pursuant to this Agreement are being acquired for
its own account and without a view to, or for resale in connection with, any distribution thereof or any interest therein within the meaning of the Securities Act; provided that the provisions of this Section 4.02 shall not prejudice such
Note Purchaser’s right at all times to sell or otherwise dispose in accordance with the terms of this Agreement of all or any part of the Parent Transaction Securities so acquired pursuant to a registration under the Securities Act or an
exemption from such registration available under the Securities Act; 
  
 (b) Such Note Purchaser understands that: (i) the sale or re-sale of the Parent Transaction Securities has not been and shall not be registered under the Securities Act or any applicable state securities laws by the Issuer, and the Parent
Transaction Securities may not be sold, distributed or otherwise transferred unless the Parent Transaction Securities (a) are sold, distributed or transferred pursuant to an effective registration statement under the Securities Act and applicable
state securities laws, or (b) the Parent Transaction Securities are sold pursuant to Rule 144 under the Securities Act or any other exemption from registration available under the Securities Act; (ii) any sale of the Parent Transaction Securities
made in reliance on Rule 144 may be made only in accordance with the terms of such Rule and further, if such Rule is not applicable, any sale of the Parent Transaction Securities under circumstances in which the seller (or the person through whom
the sale is made) may be deemed to be an underwriter (as that term is defined in the Securities Act) may require compliance with another exemption under the Securities Act; (iii) neither the Parent nor any other Person is under any obligation to
register the Parent Transaction Securities under the Securities Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (except to the extent contemplated by the Registration Rights Agreement with
respect to the Warrants, the Warrant Shares and the Conversion Shares); and (iv) no governmental entity has passed upon or made any recommendation or endorsement of the Parent Transaction Securities; 
  
 (c) The execution, delivery and performance of this Agreement and the
purchase of the Parent Transaction Securities pursuant hereto are within such Note Purchaser’s corporate, partnership or limited liability company, as applicable, powers and have been duly and validly authorized by all requisite corporate,
partnership or limited liability company, as applicable, action; 
  
 (d) This Agreement has been duly executed and delivered by such Note Purchaser; 
  
 (e) This Agreement constitutes a valid and binding agreement of such Note Purchaser; 
  
 (f) Such Note Purchaser has such knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of its
investment in the Parent Transaction Securities and such Note Purchaser is capable of bearing the economic risks of such investment; 
  
 (g) Such Note Purchaser has been given access to all documents, records, and other information, has received physical or electronic delivery of all such
documents, records 

  

 50 

 
and information which such Note Purchaser has requested, and has had adequate opportunity to ask questions of, and receive answers from, the Parent, the
Issuer and the Subsidiary Guarantors and their respective officers, employees, agents, accountants, and representatives concerning the Issuer’s business, operations, financial condition, assets, liabilities, and all other matters relevant to
its investment in the Parent Transaction Securities; 
  
 (h) The
address set forth on Schedule I hereto for such Note Purchaser is its principal place of business; and 
  
 (i) Such Note Purchaser acknowledges that the Parent Transaction Securities shall bear a restrictive legend substantially in the following form:

  
 THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES MAY NOT BE
SOLD, PLEDGED, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN A TRANSACTION WHICH IS EXEMPT UNDER THE PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR IN A
TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THE CORPORATION RESERVES THE RIGHT PRIOR TO ANY SUCH TRANSACTION TO REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO IT WITH RESPECT TO COMPLIANCE WITH THE FOREGOING
RESTRICTIONS. 
  
 ARTICLE V. COVENANTS 
  
 Section 5.01 Affirmative Covenants. So long as any Note or any other
Obligation of any Obligor under any Note Purchase Document shall remain unpaid, each Obligor shall: 
  
 (a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries to comply, in all material respects, with all applicable laws, rules,
regulations and orders, such compliance to include, without limitation, compliance with ERISA, the Racketeer Influenced and Corrupt Organizations Chapter of the Organized Crime Control Act of 1970, the rules and regulations of the FCC and each
applicable PUC. 
  
 (b) Payment of Taxes, Etc. Subject to
Section 5.01(n)(ii), pay and discharge, and cause each of its Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all taxes, assessments and governmental charges or levies imposed upon it or upon its property, and
(ii) any tax, fee or surcharge imposed upon, or required to be collected and 
  

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 remitted by, any Obligor pursuant to Applicable Law, and (iii) all lawful claims that, if unpaid, might by law become a
Lien upon its property; provided, however, that neither the Issuer nor any of its Subsidiaries shall be required to pay or discharge any such tax, assessment, charge, levy or claim that is being contested in good faith and by proper
proceedings and as to which appropriate reserves are being maintained, unless and until any Lien resulting therefrom attaches to its property and becomes enforceable. The Issuer shall not, nor shall it permit any of its Subsidiaries to, file or
consent to the filing of any consolidated income tax return with any Person (other than with the Parent or any of the Parent’s Subsidiaries). 
  
 (c) Compliance with Environmental Laws. Comply, and cause each of its Subsidiaries and all lessees and other Persons operating or occupying its
properties to comply, in all material respects, with all applicable Environmental Laws and Environmental Permits; obtain and renew and cause each of its Subsidiaries to obtain and renew all Environmental Permits necessary for its operations and the
occupancy of its properties; and conduct, and cause each of its Subsidiaries to conduct, any investigation, study, sampling and testing, and undertake any cleanup, removal, remedial or other action necessary to remove and clean up all Hazardous
Materials from any of its properties or respond to any Environmental Action, to the extent required by and in accordance with all Environmental Laws; provided, however, that neither the Issuer nor any of its Subsidiaries shall be
required to undertake any such cleanup, removal, remedial or other action to the extent that its obligation to do so is being contested in good faith and by proper proceedings and appropriate reserves are being maintained with respect to such
circumstances. 
  
 (d) Maintenance of Insurance. Maintain,
and cause each of its Subsidiaries to maintain, insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as is usually carried by companies engaged in similar businesses and owning similar
properties in the same general areas in which the Parent or such Subsidiary operates. Without limiting the generality of the foregoing, the Obligors shall maintain or cause to be maintained replacement value casualty insurance on the Collateral
under such policies of insurance, with such insurance companies, in such amounts, with such deductibles, and covering such risks as are at all times satisfactory to the Agent in its commercially reasonable judgment. Each such policy of insurance
shall (i) name the Collateral Agent for the benefit of Note Purchasers as an additional insured thereunder as its interests may appear and (ii) in the case of each business interruption and casualty insurance policy, contain a loss payable clause or
endorsement, satisfactory in form and substance to the Agent, that names the Collateral Agent for the benefit of Note Purchasers and the Collateral Agent as the loss payee thereunder for any covered loss in excess of $5,000,000 and provides for at
least 30 days’ prior written notice to the Agent of any modification or cancellation of such policy. Without limiting the generality of the foregoing, the Obligors shall also maintain or cause to be maintained, on a commercially reasonable
basis, directors and officers liability insurance which shall cover all of the members of the board of directors of the Parent in such amounts, with such deductibles, covering such risks, and having such exclusions, as are at all times satisfactory
to the Collateral Agent in its commercially reasonable judgment. 
  
 (e) Preservation of Corporate Existence, Etc. Preserve and maintain, and cause each of its Subsidiaries to preserve and maintain, its existence, legal structure, legal name, rights (charter and statutory), permits, licenses,
approvals, privileges and franchises; provided, 
  

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 however, that the Parent and its Subsidiaries may consummate any merger or consolidation permitted under
Section 5.02(d) and provided, further, that neither the Parent nor any of its Subsidiaries shall be required to preserve any right, permit, license, approval, privilege or franchise if the Board of Directors of the Issuer or
such Subsidiary shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Parent or such Subsidiary, as the case may be, and that the loss thereof is not disadvantageous in any material respect to the
Parent, such Subsidiary or the Note Purchasers. 
  
 (f)
Visitation Rights. At any reasonable time upon prior reasonable notice and from time to time (i) at the expense of the Issuer, permit any of the Agents and (ii) at the expense of any Note Purchaser, permit such Note Purchaser, in each case,
or any of their respective agents or representatives, to examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Parent and any of its Subsidiaries, and to discuss the affairs, finances and
accounts of the Parent and any of its Subsidiaries with any of their officers or directors and with their independent certified public accountants. 
  
 (g) Keeping of Books. Keep, and cause each of its Subsidiaries to keep, proper books of record and account, in which full and correct entries shall
be made of all financial transactions and the assets and business of the Parent and each such Subsidiary in accordance with generally accepted accounting principles in effect from time to time. 
  
 (h) Maintenance of Properties, Etc. Maintain and preserve, and cause
each of its Subsidiaries to maintain and preserve, all of its properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted. 
  
 (i) Transactions with Affiliates. Conduct, and cause each of its
Subsidiaries to conduct, all transactions otherwise permitted under the Note Purchase Documents with any of their Affiliates on terms that are fair and reasonable and no less favorable to the Parent or such Subsidiary than it would obtain in a
comparable arm’s-length transaction with a Person not an Affiliate. 
  
 (j) Covenant to Guarantee Obligations and Give Security. Upon (x) the request of the Collateral Agent, (y) the formation or acquisition of any new direct or indirect Subsidiaries by any Obligor or (z) the
acquisition of any property acquired for a purchase price in excess of $1,000,000 in any Fiscal Year and $5,000,000 in the aggregate over the term of this Agreement by any Obligor, and such property, in the judgment of the Collateral Agent, shall
not already be subject to a perfected first priority security interest in favor of the Collateral Agent for the benefit of the Secured Parties having the priority contemplated by the Intercreditor and Subordination Agreements, then the Obligors
shall, in each case at the Obligors’ expense: (i) in connection with the formation or acquisition of a Subsidiary, within 10 days after such formation or acquisition (or such longer period as the Agent may permit), cause each such Subsidiary,
and cause each direct and indirect parent of such Subsidiary (if it has not already done so), to duly execute and deliver to the Collateral Agent a guaranty or guaranty supplement, in form and substance satisfactory to the Collateral Agent,
guaranteeing the other Obligors’ obligations under the Note Purchase Documents, (ii) within 30 days after such request, formation or acquisition (or such longer period as the Agent may permit), furnish to the Collateral Agent a description of
the real and personal properties of the Obligors and their respective Subsidiaries in detail satisfactory 
  

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 to the Collateral Agent, (iii) within 45 days after such request, formation or acquisition (or such longer period as the
Agent may permit), duly execute and deliver, and cause each such Subsidiary and each direct and indirect parent of such Subsidiary (if it has not already done so) to duly execute and deliver, to the Collateral Agent mortgages, pledges, assignments,
security agreement supplements and other security agreements, as specified by and in form and substance satisfactory to the Collateral Agent, securing payment of all the Obligations of the applicable Obligor, such Subsidiary or such parent, as the
case may be, under the Note Purchase Documents and constituting Liens on all such properties, (iv) within 45 days after such request, formation or acquisition (or such longer period as the Agent may permit), take, and cause such Subsidiary or such
parent to take, whatever action (including, without limitation, the recording of mortgages, the filing of Uniform Commercial Code financing statements, the giving of notices and the endorsement of notices on title documents) may be necessary or
advisable in the opinion of the Collateral Agent to vest in the Collateral Agent (or in any representative of the Collateral Agent designated by it) valid and subsisting Liens on the properties purported to be subject to the mortgages, pledges,
assignments, security agreement supplements and security agreements delivered pursuant to this Section 5.01(j), enforceable against all third parties in accordance with their terms, (v) within 60 days after such request, formation or
acquisition (or such longer period as the Agent may permit), deliver to the Collateral Agent, upon the request of the Collateral Agent in its sole discretion, a signed copy of a favorable opinion, addressed to the Collateral Agent and the other
Secured Parties, of counsel for the Obligors reasonably acceptable to the Collateral Agent as to the matters contained in clauses (i), (iii) and (iv) above, as to such guaranties, guaranty supplements, mortgages, pledges, assignments, security
agreement supplements and security agreements being legal, valid and binding obligations of each Obligor thereto enforceable in accordance with their terms, as to the matters contained in clause (iv) above, as to such recordings, filings, notices,
endorsements and other actions being sufficient to create valid perfected Liens on such properties, and as to such other matters as the Collateral Agent may reasonably request, (vi) within 60 days after such request, formation or acquisition (or
such longer period as the Agent may permit), deliver, upon the request of the Collateral Agent in its sole discretion, to the Collateral Agent with respect to each parcel of real property owned by the entity that is the subject of such request,
formation or acquisition such title reports, surveys and engineering, soils and other reports, and environmental assessment reports, as may be prepared in the ordinary course of business by such entity, provided, however, that to the
extent that any Obligor or any of its Subsidiaries shall have otherwise received any of the foregoing items with respect to such real property, such items shall, promptly after the receipt thereof, be delivered to the Collateral Agent, (vii) upon
the occurrence and during the continuance of a Default, promptly cause to be deposited any and all cash dividends paid or payable to it or any of its Subsidiaries from any of its Subsidiaries from time to time into the Collateral Account, and with
respect to all other dividends paid or payable to it or any of its Subsidiaries from time to time, promptly execute and deliver, or cause such Subsidiary to promptly execute and deliver, as the case may be, any and all further instruments and take
or cause such Subsidiary to take, as the case may be, all such other action as the Collateral Agent may deem necessary or desirable in order to obtain and maintain from and after the time such dividend is paid or payable a perfected, first priority
lien on and security interest in such dividends having the priority contemplated by the Intercreditor and Subordination Agreements, and (viii) at any time and from time to time, promptly execute and deliver any and all further instruments and
documents and take all such other action as the Collateral Agent may deem 
  

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 reasonably necessary or desirable in obtaining the full benefits of, or in perfecting and preserving the Liens of, such
guaranties, mortgages, pledges, assignments, security agreement supplements and security agreements. 
  
 (k) Further Assurances. (i) Promptly upon request by any Agent, or any Note Purchaser through the Agent, correct, and cause each of its
Subsidiaries promptly to correct, any material defect or error that may be discovered in any Note Purchase Document or in the execution, acknowledgment, filing or recordation thereof, and (ii) promptly upon request by any Agent, or any Note
Purchaser through the Agent, do, execute, acknowledge, deliver, record, re-record, file, re-file, register and re-register any and all such further acts, deeds, conveyances, pledge agreements, mortgages, deeds of trust, trust deeds, assignments,
financing statements and continuations thereof, termination statements, notices of assignment, transfers, certificates, assurances and other instruments as any Agent, or any Note Purchaser through the Agent, may reasonably require from time to time
in order to (A) carry out more effectively the purposes of the Note Purchase Documents, (B) to the fullest extent permitted by applicable law, subject any Obligor’s or any of its Subsidiaries’ properties, assets, rights or interests to the
Liens now or hereafter intended to be covered by any of the Collateral Documents, (C) perfect and maintain the validity, effectiveness and priority of any of the Collateral Documents and any of the Liens intended to be created thereunder and (D)
assure, convey, grant, assign, transfer, preserve, protect and confirm more effectively unto the Secured Parties the rights granted or now or hereafter intended to be granted to the Secured Parties under any Note Purchase Document or under any other
instrument executed in connection with any Note Purchase Document to which any Obligor or any of its Subsidiaries is or is to be a party, and cause each of its Subsidiaries to do so. Notwithstanding the foregoing, no Obligor shall be required,
solely pursuant to the provisions of this Section 5.01(k), to encumber any assets which were not otherwise required to be encumbered on the Closing Date or pursuant to Section 5.01(j) or 5.01(n). 
  
 (l) Compliance with Terms of Leaseholds. Make all payments and
otherwise perform all obligations, and cause each of its Subsidiaries to make all payments and otherwise perform all obligations, in respect of all leases of real property to which the Issuer or any of its Subsidiaries is a party as and when such
payments and obligations are due, keep such leases in full force and effect and not allow such leases to lapse or be terminated or any rights to renew such leases to be forfeited or cancelled, notify the Agent of any default by any party with
respect to such leases and cooperate with the Agent in all respects to cure any such default, and cause each of its Subsidiaries to do so, except in each of the foregoing cases where the failure to do so would not have a Material Adverse Effect.

  
 (m) Performance of Material Contracts. Perform and
observe, and cause each of its Subsidiaries to perform and observe, all the terms and provisions of each Material Contract to be performed or observed by it, maintain each such Material Contract in full force and effect until the cancellation or
termination thereof in accordance with its terms, enforce each such Material Contract in accordance with its terms, take all such action to such end as may be from time to time reasonably requested by the Agent (or by the Agent at the request of the
Required Holders) and, upon request of the Agent, make to each other party to each such Material Contract such demands and requests for information and reports or for action as any Obligor or any of its Subsidiaries is entitled to make under such
Material Contract, and cause each of its Subsidiaries to do so, except in each of the foregoing cases where the failure to do so would not have a Material Adverse Effect. 
  

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 (n) Post-Closing Covenants. (i) With respect to (A) any newly-acquired Unencumbered Parcel with a
gross book value in excess of $3,000,000, or (B) any Unencumbered Parcel owned by any Obligor as of the Closing Date in which any such Obligor has invested such that the gross book value of the land and any buildings thereon after the investment is
completed is greater than $3,000,000, the Obligors shall deliver to the Agent, within 45 days after the closing of any such acquisition in clause (A) above or of any such investment in clause (B) above with respect to such property, the following,
each dated such day (unless otherwise specified) in form and substance satisfactory to the Agent: deeds of trust, trust deeds, mortgages, leasehold mortgages and leasehold deeds of trust in form reasonably satisfactory to the Agent (together with
the Assignments of Leases and Rents referred to therein and each other mortgage delivered pursuant to Section 5.01(j), in each case as amended, the “Mortgages”), duly executed by the appropriate Obligor, together with:

  
 (1) evidence that counterparts of the
Mortgages have been duly recorded in all filing or recording offices that the Agent may reasonably deem necessary or desirable in order to create a valid first and subsisting Lien on the property described therein in favor of the Collateral Agent
for the benefit of the Secured Parties having the priority contemplated by the Intercreditor and Subordination Agreements and that all filing and recording taxes and fees have been paid, 
  
 (2) fully paid American Land Title Association Lender’s Extended Coverage mortgagee title insurance
policies (the “Mortgage Policies”) in form and substance, with endorsements and in amount reasonably acceptable to the Collateral Agent, issued, coinsured and reinsured by title insurers acceptable to the Collateral Agent, insuring
the Mortgages to be valid first and subsisting Liens on the property described therein, free and clear of all defects (including, but not limited to, mechanics’ and materialmen’s Liens) and encumbrances, excepting only Permitted
Encumbrances and Liens having the priority contemplated by the Intercreditor and Subordination Agreements, and providing for such other affirmative insurance (including endorsements for mechanics’ and materialmen’s Liens) and such
coinsurance and direct access reinsurance as the Collateral Agent may reasonably deem necessary or desirable, 
  
 (3) American Land Title Association form surveys, certified to the Collateral Agent and the issuer of the Mortgage Policies in a manner
reasonably satisfactory to the Collateral Agent by a land surveyor duly registered and licensed in the States in which the property described in such surveys is located and acceptable to the Collateral Agent, showing all buildings and other
improvements, any off-site improvements, the location of any easements, parking spaces, rights of way, building set-back lines and other dimensional regulations and the absence of encroachments, either by such improvements or on to such property,
and other defects, other than encroachments and other defects reasonably acceptable to the Collateral Agent, 
  

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 (4) the Assignments of Leases and Rents referred to in the Mortgages, duly executed by
the appropriate Obligor, 
  
 (5) such consents
and agreements of lessors and other third parties, and such estoppel letters and other confirmations, as the Agent may reasonably deem necessary or desirable, 
  

(6) evidence of the insurance required by the terms of the Mortgages, and 
  
 (7) evidence that all other action that the Agent may deem
reasonably necessary or desirable in order to create valid first and subsisting Liens on the property described in the Mortgages has been taken. 
  
 (ii) With respect to (A) any newly-acquired Unencumbered Parcel with a gross book value in excess of $1,000,000 but less than $3,000,000,
or (B) any Unencumbered Parcel owned by any Obligor as of the Closing Date in which any such Obligor has invested such that the gross book value of the land and any buildings thereon after the investment is completed is in excess of $1,000,000 but
less than $3,000,000, the Obligors shall deliver to the Agent, within 45 days after the closing of any such acquisition in clause (A) above or of any such investment in clause (B) above with respect to such property, the following, each dated such
day (unless otherwise specified) in form and substance satisfactory to the Agent: deeds of trust, trust deeds, mortgages, leasehold mortgages and leasehold deeds of trust in form reasonably satisfactory to the Agent, together with evidence that
counterparts of any such mortgages have been duly recorded in all filing or recording offices that the Agent may reasonably deem necessary or desirable in order to create a valid first and subsisting Lien on the property described therein in favor
of the Collateral Agent for the benefit of the Secured Parties and that all filing and recording taxes and fees have been paid. 
  
 (iii) With respect to the Davidson County switch property located at 101 Rains Avenue, Nashville, TN 37203, the Obligors shall deliver to
the Agent, within 30 days after the Closing Date, deeds of trust, trust deeds, mortgages, leasehold mortgages and leasehold deeds of trust, as applicable, in form reasonably satisfactory to the Agent, together with evidence that counterparts of such
mortgage have been duly recorded in all filing or recording offices that the Agent may reasonably deem necessary or desirable in order to create a valid first and subsisting Lien on the property described therein in favor of the Collateral Agent for
the benefit of the Secured Parties and that all filing and recording taxes and fees have been paid. 
  
 (o) Use of Proceeds. The Parent shall, and shall cause each of its Subsidiaries to, use the proceeds of the Notes to repay all obligations under
the Third Amended ITCD Credit Agreement and otherwise provide working capital for the Parent and its Subsidiaries and for such Persons’ general corporate purposes. 
  

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 (p) Application of Extraordinary Receipts. The Parent shall and shall cause each of its
Subsidiaries to use the proceeds of any Extraordinary Receipt or Net Cash Proceeds in accordance with the terms of this Agreement. 
  
 (q) Deposit Accounts, Securities Accounts and Cash Management Systems. The Parent shall, and shall cause each of its Subsidiaries to, use and
maintain its deposit accounts, securities accounts and cash management systems in a manner reasonably satisfactory to Note Purchasers and the Agent. The Parent shall not permit any of such deposit accounts or securities accounts at any time to have
a principal balance in excess of $100,000 in the aggregate for all such accounts unless the Parent or such Subsidiary, as the case may be, has delivered to Note Purchasers and the Agent an Account Control Agreement substantially in the form attached
hereto as Exhibit H. 
  
 (r) Assignability of
Contracts. The Parent shall, and shall cause each of its Subsidiaries to, use its commercially reasonable efforts to exclude from all Material Contracts entered into after the Closing Date, any term or provision that would prevent the Parent or
a Subsidiary Guarantor from granting a Lien in such agreements or documents to the Collateral Agent under the Collateral Documents. 
  
 (s) Regulatory Consents. The Parent shall, and shall cause each of its Subsidiaries to, use its diligent efforts to obtain or make, within 180 days
after the Closing Date, all governmental licenses, permits, approvals, authorizations, actions, notices and filings set forth on Part II of Schedule 4.01(d) in connection with the Transactions (without the imposition of any conditions that
are not reasonably acceptable to the Agent). 
  
 (t)
Information Statement. The Parent shall file the information statement (the “Information Statement”) of the Parent required to be filed with the SEC pursuant to Regulation 14C under the Exchange Act in connection with the
issuance of those certain warrants issued pursuant to the Warrant Agreement, dated as of March 29, 2005, between the Parent and Mellon Investor Services LLC, as warrant agent, as amended from time to time (the “March 2005
Warrants”), shares issuable upon exercise of the March 2005 Warrants, the Warrants, Warrant Shares, and the Conversion Shares and any amendments or supplements thereto, and will cause such filing, when filed, to comply as to form in all
material respects with the applicable requirements of the Exchange Act. At the time the Information Statement or any amendment or supplement thereto is first mailed to stockholders of the Parent, the Information Statement, as supplemented or
amended, if applicable, shall not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not
misleading. The representations and warranties contained in this Section 5.01(t) shall not apply to statements or omissions included in the Information Statement based upon information furnished to the Parent in writing by WCAS or TCP
specifically for use therein. 
  
 (u) For each financial
institution at which any Obligor maintains deposit, securities or other accounts for which the Obligors have been unable to deliver a legal opinion reasonably acceptable to the Agent as to the perfection of a security interest over such account as
of the Closing, the Obligors shall either (i) deliver such an opinion (in form and substance satisfactory to the Agents) over such account control agreements not later than 30 days following 
  

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 the Closing Date or (ii) at the request of the Agent, promptly move or transfer any deposit, securities or other accounts
and/or cash management systems to one or more nationally or regionally recognized financial institutions that the Agents in their sole discretion determine will be able to provide account control agreements that demonstrate that the Collateral Agent
has a perfected security interest in such security, deposit or other account (whether confirmed by legal opinion in form and substance satisfactory to the Agents or other means acceptable to the Agents in their sole discretion). In addition, the
Obligors shall cooperate and assist the Agents in ensuring that the Collateral Agent has a perfected security interest in the securities, deposit and other accounts of the Obligors at all times. 
  
 Section 5.02 Negative Covenants. So long as any Note or any other
Obligation of any Obligor under any Note Purchase Document shall remain unpaid, no Obligor shall, at any time: 
  
 (a) Liens, Etc. Create, incur, assume or suffer to exist, or permit any of its Subsidiaries to create, incur, assume or suffer to exist, any Lien
on or with respect to any of its properties of any character (including, without limitation, accounts) whether now owned or hereafter acquired, or sign, file or authorize the filing or suffer to exist, or permit any of its Subsidiaries to sign, file
or authorize the filing or suffer to exist, under the Uniform Commercial Code of any jurisdiction, a financing statement that names the Parent or any of its Subsidiaries as debtor, or sign or suffer to exist, or permit any of its Subsidiaries to
sign or suffer to exist, any security agreement authorizing any secured party thereunder to file such financing statement, or assign, or permit any of its Subsidiaries to assign, any accounts or other right to receive income, except: 
  
 (i) Liens created under the Note Purchase Documents;

  
 (ii) Permitted Liens; 
  
 (iii) Liens existing on the date hereof and described on
Schedule 4.01(v) hereto; 
  
 (iv) Liens
arising in connection with Capitalized Leases permitted under Section 5.02(b)(iv); provided, that no such Lien shall extend to or cover any Collateral or assets other than the assets subject to such Capitalized Leases; 
  
 (v) Liens created after the date hereof in connection with
purchase money obligations with respect to equipment acquired by any Obligor in the ordinary course of business; 
  
 (vi) Liens securing Debt incurred pursuant to Sections 5.02(b) (ii) and (iii) and otherwise permitted by the Subordination
and Intercreditor Agreements; 
  
 (vii) Liens
securing Debt incurred pursuant to Sections 5.02(b)(vi); and 
  
 (viii) (A) deposits of cash, checks or Cash Equivalents to secure Ordinary Course Obligations, (B) letters of credit issued to secure Ordinary Course Obligations or (C) surety, appeal, performance and return-of-money
bonds and bonds of a similar nature issued to secure or in respect of Ordinary Course Obligations, in an aggregate amount not to exceed the amount set forth in Section 5.02(b)(ix). 
  

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 (b) Debt. Incur or permit any of its Subsidiaries to Incur any Debt other than: 
  
 (i) Debt under the Note Purchase Documents; 
  
 (ii) Debt outstanding as of the Closing Date under the
Second Lien Loan Documents in an aggregate principal amount not to exceed (a) $55,714,294 minus (b) the sum of any principal prepayments made on such Debt after the date hereof (plus paid-in-kind interest thereon in accordance with the Second Lien
Loan Documents), as the same may be refinanced or replaced from time to time, so long as all of the following conditions are met: (A) such refinancing or replacement does not shorten the maturity date or weighted average life to maturity date of the
Debt being refinanced or replaced, (B) such refinancing or replacement does not increase the non-default interest rate by more than 200 basis points (unless the Note Purchase Documents are also amended to permit an equivalent increase), (C) the
priority of the Liens and guaranties thereunder do not change (and continue to be subject to the Intercreditor and Subordination Agreements), (D) the principal amount of the refinanced or replaced Debt does not exceed the maximum principal amount of
Debt permitted to be incurred pursuant to this clause (ii), and (E) the covenants, defaults and other material provisions thereof are not made materially more restrictive; 
  
 (iii) Debt of the Obligors under the New Third Lien Documents outstanding at any time in an aggregate
principal amount not to exceed $90,000,000 (plus paid-in-kind interest thereon in accordance with the New Third Lien Documents, as the same may be refinanced or replaced from time to time, so long as all of the following conditions are met: (A) such
refinancing or replacement does not shorten the maturity date or weighted average life to maturity date of the Debt being refinanced or replaced, (B) such refinancing or replacement does not increase the non-default interest rate by more than 200
basis points (unless the Note Purchase Documents are also amended to permit an equivalent increase), (C) the priority of the Liens and guaranties thereunder do not change (and continue to be subject to the Third Lien Intercreditor and Subordination
Agreement), (D) the principal amount of the refinanced or replaced Debt does not exceed the maximum principal amount of Debt permitted to be incurred pursuant to this clause (iii), and (E) the covenants, defaults and other material provisions
thereof are not made materially more restrictive; 
  
 (iv) Capitalized Leases (other than Surviving Debt) not to exceed in the aggregate $7,500,000; 
  
 (v) the Surviving Debt; 
  
 (vi) Debt Incurred under the Second Lien Loan Documents after a Default or Event of Default consisting of protective advances made by the
Second Lien Lenders directly to Persons unrelated to the Issuer in an amount not to exceed $5,500,000 for the sole purpose of protecting or preserving the value of the Collateral; 
  

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 (vii) Debt of the Issuer under Hedge Agreements; provided, that such agreements
(A) are designed solely to protect the Obligors against fluctuations in foreign currency exchange rates or interest rates and (B) do not increase the Debt of the Obligor thereunder outstanding at any time other than as a result of fluctuations in
foreign currency exchange rates or interest rates or by reason of fees, indemnities and compensation payable thereunder; 
  
 (viii) Debt Incurred in connection with the repayment or refinancing of the Debt under the Note Purchase Documents in full or, if the Debt
under the Note Purchase Documents is not repaid or refinanced in full, in such other amount and on such terms and conditions as is approved by the Required Holders; 
  
 (ix) Debt in respect of Ordinary Course Obligations in an aggregate amount not to exceed $10,000,000 at any
time outstanding; and 
  
 (x) Debt of the type
described in clause (j) of the definition of “Debt” which is secured by a Permitted Lien, to the extent that such Debt is Incurred in the ordinary course of business and is not the subject of an enforcement, collection, execution, levy or
foreclosure proceeding and is not duplicative of Debt Incurred pursuant to Section 5.02(b)(ix). 
  
 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 Sections 5.02(b)(i), (ii), (iii),
(iv) and (ix) shall not exceed $393,215,294 in aggregate principal amount at any one time outstanding, and (B) any Obligor may Incur Debt owed to any other Obligor. 
  
 (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 as presently conducted. 
  
 (d) Mergers, Etc. Merge into or consolidate with any Person or permit
any Person to merge into it, or permit any of its Subsidiaries to do so, except that: 
  
 (i) any Subsidiary of the Issuer may merge into or consolidate with the Issuer or any other Subsidiary of the Issuer, provided,
that (A) in the case of any such merger or consolidation of or with the Issuer, the Issuer shall be the surviving Person and (B) in the case of any such merger or consolidation among Subsidiaries of the Issuer, the Person formed by such merger or
consolidation shall be a Subsidiary of the Issuer, and if a Subsidiary Guarantor is a party to such merger or consolidation, the Person formed by such merger or consolidation shall be a Subsidiary Guarantor; 
  
 (ii) in connection with any sale or other disposition
permitted under Section 5.02(e) (other than clause (ii) thereof), any Subsidiary of the Issuer may permit any other Person to merge into or consolidate with it; and 
  

 61 

 (iii) any Obligor may merge into or consolidate with any Person in connection with a
Permitted Reorganization; 
  
 provided, that in each case, immediately after
giving effect to such merger or consolidation, no event shall occur and be continuing that constitutes a Default. 
  
 (e) Sales, Etc., of Assets. Sell, lease, transfer or otherwise dispose of, or permit any of its Subsidiaries to sell, lease, transfer or otherwise
dispose of, any assets, or grant any option or other right to purchase, lease or otherwise acquire any assets, other than Inventory to be sold in the ordinary course of its business, except: 
  
 (i) sales and leases of assets in the ordinary course of its
business consistent with prudent business practice for companies engaged in similar businesses, for cash and fair value (such as fiber sales); 
  
 (ii) in a transaction authorized by Section 5.02(d) (other than clause (ii) thereof); 
  
 (iii) the sales or dispositions as set forth in Schedule
VII; 
  
 (iv) sales of assets as consented to
by the Required Holders for cash and for fair value; 
  
 (v) sales of obsolete equipment and other property no longer used or relevant to the core business or operations of any Obligor for cash and for fair value in an aggregate amount not to exceed $2,000,000; 
  
 (vi) sales of equipment for cash and for fair value in an
aggregate amount not to exceed $10,000,000 to the extent the proceeds thereof are used by any Obligor to purchase replacement equipment that is substantially similar in type and function to the equipment sold or to be sold, within 180 days before or
after the date of any such sale; 
  
 (vii) any
sale, lease, transfer or other disposition by the Parent or any Subsidiary of the Parent to the Issuer and its Subsidiaries that are Obligors; 
  
 (viii) assignments, sales or other dispositions at fair market value for cash of accounts receivable representing amounts owed to any
Obligor by any Person that is subject to a proceeding under the Bankruptcy Code; and 
  
 (ix) intercompany assignments, sales or other dispositions of property in connection with a Permitted Reorganization; 
  
 provided, that in the case of sales of assets pursuant to clauses (iv) and (viii) above, the
Issuer shall, on the date of receipt by any Obligor or any of its Subsidiaries of the Net Cash Proceeds from such sale, prepay the Notes pursuant to, and in the amount set forth in Section 2.09(a), as specified therein to be applied in the
order of priority set forth in Section 2.09. 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. 
  

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 (f) Investments in Other Persons. Make or hold, or permit any of its Subsidiaries to make or hold,
any Investment in any Person, except: 
  
 (i)
equity Investments by the Parent and its Subsidiaries in their Subsidiaries outstanding on the date hereof and other Investments in Obligors, including Persons who become Obligors in a transaction permitted by Section 5.02(d); 
  
 (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) extension of trade credit in the ordinary course of
business; 
  
 (vi) Investments permitted pursuant
to Section 5.02(d); and 
  
 (vii)
intercompany Investments made in connection with a Permitted Reorganization. 
  
 (g) Restricted Payments. Declare or pay any dividends, purchase, redeem, retire, defease or otherwise acquire for value any of its Equity Interests now or hereafter outstanding, return any capital to its
stockholders, partners or members (or the equivalent Persons thereof) as such, make any distribution of assets, Equity Interests, obligations or securities to its stockholders, partners or members (or the equivalent Persons thereof) as such (each, a
“Restricted Payment”), or permit any of its Subsidiaries to make a Restricted Payment except (i) Restricted Payments by a Subsidiary of the Issuer or BTI to the Issuer or BTI, respectively, to other Subsidiaries of the Issuer or BTI
that are the direct or indirect parent of such Subsidiary or BTI and, following the consummation of and in connection with the Permitted Reorganization, by any Subsidiary of any other direct Subsidiary of the Parent to such direct Subsidiary or to
any other Subsidiary of such direct Subsidiary, (ii) if no Event of Default has occurred and is continuing, the declaration and payment by any direct Subsidiary of the Parent of dividends in cash or distributions in cash to the Parent, to pay (A)
scheduled interest and principal of Surviving Debt and (B) cash in lieu of issuing fractional shares of its Capital Stock and payment of stockholders dissenters rights in an aggregate amount not to exceed $500,000, (iii) the declaration or payment
of dividends or distributions solely in Equity Interests of the Parent (including Series A PIK Dividends, Series B PIK Dividends and Series C PIK Dividends), (iv) the purchase, redemption, retirement, defeasance or other acquisition for value of any
of the Equity Interests of the Parent (A) in exchange for other Equity Interests of the Parent (including in connection with a Benefit Plan Exchange Offer), (B) upon the conversion of Preferred Interests of the Parent or the exercise, exchange or
conversion of stock options, 
  

 63 

 warrants or similar rights to acquire Equity Interests of the Parent, (C) in connection with any purchase, redemption,
retirement, defeasance or other acquisition for value of Equity Interests of the Parent tendered by the holder of such Equity Interests in payment of withholding or other taxes relating to the exercise, exchange or conversion of stock options,
warrants or other similar rights to acquire Equity Interests of the Parent or (D) tendered in settlement of indemnification or similar claims by the Parent against a holder of Equity Interests of the Parent or (v) Restricted Payments made in
connection with a Permitted Reorganization so long as such Restricted Payments are made only to an Obligor. 
  
 (h) Transactions with Shareholders and Affiliates. The Parent shall not, and shall not permit any of its Subsidiaries to, directly or indirectly,
enter into or permit to exist any transaction (to the extent such transaction is a reportable event under Item 404 of Regulation S-K) (including the purchase, sale, lease or exchange of any property or the rendering of any service) with any holder
of 5% or more of any class of Equity Interests of the Parent or with any Affiliate of the Parent or of any such holder, on terms that are less favorable to the Issuer or that Subsidiary, as the case may be, than those that might be obtained at the
time from Persons who are not such a holder or Affiliate; provided that the foregoing restriction shall not apply to (i) any transaction between the Parent and any of its direct and indirect wholly-owned Subsidiaries or between any of its
wholly-owned Subsidiaries, (ii) any transaction consummated in connection with a Permitted Reorganization, (iii) reasonable and customary fees paid to members of the Governing Bodies of the Parent and its Subsidiaries, (iv) the payment of reasonable
legal fees and expenses incurred by the Existing Stockholders in connection with their investment in the Obligors and their Subsidiaries, or (v) any transaction set forth on Schedule 5.02(h); provided, further that in no event shall
the Parent or any of its Subsidiaries pay, at any time, any fees (whether in the form of cash, equity incentives or otherwise) to any Affiliates for management, consulting or similar services. 
  
 (i) 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 (i) required by or in connection with the Note Purchase Documents, the New Third Lien Loan Documents or the Warrant Documents,
in each case as in effect on the Closing Date, (ii) that could not reasonably be expected to have a Material Adverse Effect or (iii) in connection with a Permitted Reorganization. 
  
 (j) 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 GAAP, or (ii) Fiscal Year. 
  
 (k) Prepayments, Etc., of Debt. (i) Prepay, redeem, purchase, defease or otherwise satisfy prior to the scheduled amortization or maturity thereof in any manner, or make any payment in violation of any
subordination terms of, any Debt or permit any of its Subsidiaries to do so except (A) the payment or prepayment of any or all of the Obligations under the Note Purchase Documents, (B) prepayments in full of Debt incurred pursuant to Section
5.02(b)(ii) but only with the proceeds of replacement or refinancing Debt permitted under such Section, (C) prepayments in full of Debt incurred pursuant to Section 5.02(b)(iii) but only with the proceeds of replacement or refinancing
Debt permitted under such Section, (D) regularly scheduled or required repayments or redemptions of Surviving Debt, and (E) the 
  

 64 

 prepayment of intercompany Debt owed by any Obligor to any other Obligor by the Parent or any Subsidiary of the Parent,
(ii) amend, modify or change in any manner any term or condition of any Surviving Debt or any Subordinated Debt, or permit any of its Subsidiaries to do so, except in each case for any amendment, modification or change of any such Debt that (A)
could not reasonably be expected to adversely effect the Note Purchasers, (B) would not accelerate the scheduled amortization or final maturity date of such Surviving Debt or Subordinated Debt or increase the amounts due on any scheduled
amortization date, (C) would not increase the applicable interest rate of such Surviving Debt or Subordinated Debt, or permit any of its Subsidiaries to do any of the foregoing, and (D) shall not contain mandatory redemption, prepayment, covenant or
event of default provisions materially more restrictive than the terms of such Surviving Debt or Subordinated Debt prior to the date of such amendment, modification or change, or (iii) amend, modify or change in any manner any term or condition of
the Second Lien Loan Documents or the New Third Lien Documents except, in each case, to the extent such amendment, modification or change is permitted by the Intercreditor and Subordination Agreements. 
  
 (l) 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 Note Purchasers under this Agreement, (B) the
Second Lien Agent and the Second Lien Lenders under the Second Lien Loan Documents, or (C) the Third Lien Lenders under the New Third Lien Documents or (ii) in connection with (A) any Surviving Debt (as such restriction exists on the date hereof) or
(B) any Capitalized Lease permitted under Section 5.02(b)(iii) solely to the extent that such Capitalized Lease prohibits a Lien on the property subject thereto. 
  
 (m) Partnerships, Etc. Become a general partner in any general or limited partnership or joint venture, or permit any
of its Subsidiaries to do so. 
  
 (n) 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. 
  
 (o) Formation of Subsidiaries. Organize, or permit any Subsidiary to organize, any new Subsidiary except for any
Subsidiary so long as (i) any such Subsidiary shall be directly or indirectly wholly-owned by the Parent, (ii) 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, (iii) immediately upon the creation of any new wholly owned domestic Subsidiary, such Subsidiary shall become a Subsidiary Guarantor, (iv) the applicable Obligor 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 Agreements, for the benefit of the
Note Purchasers, the Second Lien Lenders and the Third Lien Lenders, together with stock powers executed in blank, and executes 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 and the New Third Lien Documents, in form substantially similar to the applicable Note Purchase Document provided that clauses (ii), (iii) and (iv) shall not apply to the organization of a
Subsidiary of the 
  

 65 

 Parent with de minimis assets solely for the purpose of merging and consolidating such newly organized Subsidiary with
another Subsidiary of the Parent in connection with a Permitted Reorganization, so long as such merger or consolidation is consummated promptly after the organization of such newly organized Subsidiary and the Subsidiary formed by or surviving such
merger or consolidation complies with this Section 5.02(o). 
  
 (p) Payment Restrictions Affecting Subsidiaries. Directly or indirectly, enter into or suffer to exist, or permit any of its Subsidiaries to enter into or suffer to exist, any agreement or arrangement limiting the ability of any of
its Subsidiaries to declare or pay dividends or other distributions in respect of its Equity Interests or repay or prepay any Debt owed to, make loans or advances to, or otherwise transfer assets to or invest in, any Obligor or a Subsidiary of an
Obligor (whether through a covenant restricting dividends, loans, asset transfers or investments, a financial covenant or otherwise), except (i) the Note Purchase Documents, (ii) the Second Lien Loan Documents, (iii) the New Third Lien Documents and
(iv) any agreement or instrument evidencing Surviving Debt (as such restriction exists on the date hereof). 
  
 (q) 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, modify or agree to amend or modify any such Material Contract (other than any amendment or modification to a Material Contract required by any
change in law, rule or regulation applicable to such Material Contract; give any consent, waiver or approval under any Material Contract; waive any default under or breach 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 Obligor thereunder or that would impair the interest or rights of any Agent or any Note Purchaser, or permit any of its Subsidiaries to do any of the foregoing,
except, in each of the foregoing cases (other than any change in law, rule or regulation that requires an amendment or modification of a Material Contract), where to do so would not be reasonably likely to have a Material Adverse Effect. 

 
 (r) 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 period set forth below: 
  

				
	 Period

	  	Amount

	 For the calendar year ending December 31, 2005
	  	$	34,545,000
	 For the calendar year ending December 31, 2006
	  	$	48,791,000

  
 For each of the
calendar years ending December 31, 2007 and December 31, 2008, and the two quarters ending June 30, 2009, no Obligor shall make or commit to make, or allow any of its Subsidiaries to make or commit to make, Capital Expenditures in excess of 50% of
EBITDA for the twelve-month period ending on the last date of each such calendar year, or the twelve-month period ended on June 30, 2009, respectively; provided, that in no event shall the maximum amount of Capital Expenditures for the

  

 66 

 calendar years ending December 31, 2007 and 2008 exceed $50,000,000 and in no event shall the maximum
amount of Capital Expenditures in the twelve month period ended June 30, 2009 exceed $50,000,000. Notwithstanding the amounts set forth in this Section 5.02(r)(i), the Obligors may carry over to the next calendar year the lesser of (x) 50% of
the prior year’s unused Capital Expenditure amount set forth or determined in accordance with the foregoing and (y) 20% of the prior year’s Capital Expenditure amount. Any such carry over amounts shall carry over to the immediately
succeeding year and shall not be cumulative from year to year. 
  
 (ii) Senior Debt Ratio. Commencing on the last day of the fiscal quarter ending September 30, 2005 and, measured on the last day of each fiscal quarter thereafter until the Termination Date, the Senior Debt
Ratio shall not exceed the following: 
  

			
	 Period

	  	Ratio

	 September 30, 2005
	  	3.55
	 December 31, 2005
	  	3.79
	 March 31, 2006
	  	3.88
	 June 30, 2006
	  	4.26
	 September 30, 2006
	  	4.20
	 December 31, 2006
	  	3.91
	 March 31, 2007
	  	3.65
	 June 30, 2007
	  	3.37
	 September 30, 2007
	  	3.15
	 December 31, 2007
	  	3.00
	 March 31, 2008
	  	2.87
	 June 30, 2008
	  	2.83
	 September 30, 2008
	  	2.82
	 December 31, 2008
	  	2.84
	 March 31, 2009
	  	2.85
	 June 30, 2009
	  	2.85

  
 (iii)
Total Leverage Ratio. Commencing on the last day of the fiscal quarter ending September 30, 2005, 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: 
  

			
	 Period

	  	 Ratio

	 September 30, 2005
	  	5.84
	 December 31, 2005
	  	6.22
	 March 31, 2006
	  	6.36
	 June 30, 2006
	  	6.99
	 September 30, 2006
	  	6.90
	 December 31, 2006
	  	5.66
	 March 31, 2007
	  	5.89
	 June 30, 2007
	  	5.45
	 September 30, 2007
	  	4.83
	 December 31, 2007
	  	4.60
	 March 31, 2008
	  	4.42
	 June 30, 2008
	  	4.35
	 September 30, 2008
	  	4.35
	 December 31, 2008
	  	4.38
	 March 31, 2009
	  	4.40
	 June 30, 2009
	  	4.42

  

 67 

 (iv) Interest Coverage Ratio. Commencing on the last day of the fiscal quarter
ending September 30, 2005, 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: 
  

			
	 Period

	  	Amount

	 September 30, 2005
	  	2.00
	 December 31, 2005
	  	1.74
	 March 31, 2006
	  	1.43
	 June 30, 2006
	  	1.25
	 September 30, 2006
	  	1.23
	 December 31, 2006
	  	1.47
	 March 31, 2007
	  	1.42
	 June 30, 2007
	  	1.54
	 September 30, 2007
	  	1.65
	 December 31, 2007
	  	1.74
	 March 31, 2008
	  	1.86
	 June 30, 2008
	  	1.89
	 September 30, 2008
	  	1.93
	 December 31, 2008
	  	1.92
	 March 31, 2009
	  	1.91
	 June 30, 2009
	  	1.90

  
 (v)
Minimum Cash. As of the last day of each quarter (commencing September 30, 2005), 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 Note Purchase Documents and Liens in favor of the applicable Collateral Agent pursuant to the Second Lien Loan Documents and New Third Lien Documents) or the use of which is otherwise restricted, to be less than $10,000,000 from the Closing Date

  

 68 

 through the Termination Date; provided, however, that no Event of Default shall be
triggered by a breach of this Section 5.02(r)(v) unless such breach is not cured by the breaching Obligor by the last day of the succeeding quarter in which this Section 5.02(r)(v) was breached. 
  
 (vi) Minimum Consolidated EBITDA. As of December 31,
2006, permit Consolidated EBITDA to be less than $60,000,000. 
  
 Section 5.03 Reporting Requirements. So long as any Note or any other Obligation of any Obligor under any Note Purchase Document shall remain unpaid, the Obligors shall furnish to the Agents and the Note Purchasers: 
  
 (a) Default Notice. (i) As soon as possible and in any event within
two days after any Senior Officer of any Obligor obtains knowledge of any condition or event that constitutes an Event of Default or any event, development or occurrence reasonably likely to have a Material Adverse Effect continuing on the date of
such statement, a statement of the Chief Financial Officer of the Issuer setting forth details of such Event of Default, or any such event, development or occurrence and the action that the Issuer has taken and proposes to take with respect thereto
and (ii) concurrent with delivery of any notice under or pursuant to the Second Lien Loan Documents not otherwise required to be delivered under this Section 5.03, copies of such notice. 
  
 (b) Annual Financials. As soon as available and in any event within 90
days after the end of each Fiscal Year, a copy of an annual report on Form 10-K for such Fiscal Year for the Parent and its Subsidiaries, including therein a Consolidated balance sheet of the Parent and its Subsidiaries as of the end of such Fiscal
Year and a Consolidated statement of income and a Consolidated statement of cash flows of the Parent and its Subsidiaries for such Fiscal Year, in each case accompanied by an opinion acceptable to the Required Holders of BDO Seidman, LLP or other
independent public accountants of recognized standing acceptable to the Required Holders, together with (i) a certificate of such accounting firm to the Note Purchasers stating that in the course of the regular audit of the business of the Parent
and its Subsidiaries, which audit was conducted by such accounting firm in accordance with generally accepted auditing standards, such accounting firm has obtained no knowledge that a Default has occurred and is continuing under Section
5.02(r) in respect of such Fiscal Year (as determined solely with reference to financial condition covenant maintenance by the Parent and its Subsidiaries as of the conclusion of the applicable Fiscal Year, rather than on a quarterly basis), or
if, in the opinion of such accounting firm, a Default has occurred and is continuing under Section 5.02(r) in respect of such Fiscal Year (as determined solely with reference to financial condition covenant maintenance by the Parent and its
Subsidiaries as of the conclusion of the applicable Fiscal Year, rather than on a quarterly basis), a statement as to the nature thereof, (ii) beginning with the Fiscal Year ending December 31, 2005, a Financial Covenants Certificate stating the
Issuer’s calculation of the ratios set forth in Section 5.02(r) for the last quarter of such Fiscal Year, a statement as to the amount of proceeds from any sale of assets, including obsolete equipment, received during such Fiscal Year,
including a reasonably detailed description of such assets, with supporting documentation and in reasonable detail, and (iii) a Financial Covenants Certificate stating that the representations and warranties in each Note Purchase Document are
correct in all material respects on and as of such date, other than any such representations or warranties that, 
  

 69 

 by their terms, refer to a specific date other than such date, in which case as of such date and that no Default has
occurred and is continuing or, if a Default has occurred and is continuing, a statement as to the nature thereof and the action that the Issuer has taken and proposes to take with respect thereto. 
  
 (c) Quarterly Financials. As soon as available and in any event within
45 days after the end of each of the first three quarters of each Fiscal Year, (i) a Consolidated balance sheet of the Parent and its Subsidiaries as of the end of such quarter and Consolidated statement of income and a Consolidated statement of
cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous fiscal quarter and ending with the end of such fiscal quarter and a Consolidated statement of income and a Consolidated statement of cash flows of the
Parent and its Subsidiaries for the period commencing at the end of the previous Fiscal Year and ending with the end of such quarter, setting forth in each case in comparative form the corresponding figures for the corresponding date or period of
the preceding Fiscal Year, (ii) beginning with the fiscal quarter ending September 30, 2005, a Financial Covenants Certificate stating the Issuer’s calculation of the ratios set forth in Section 5.02(r) for such fiscal quarter with
supporting documentation, all in reasonable detail and duly certified (subject to normal year-end audit adjustments) by the Chief Financial Officer of the Parent as having been prepared in accordance with GAAP (with respect to item (i)), and (iii) a
Financial Covenants Certificate stating that the representations and warranties in each Note Purchase Document are correct in all material respects on and as of such date, other than any such representations or warranties that, by their terms, refer
to a specific date other than such date, in which case as of such date, and that no Default has occurred and is continuing or, if a Default has occurred and is continuing, a statement as to the nature thereof and the action that the Issuer has taken
and proposes to take with respect thereto. 
  
 (d) Monthly
Financials. As soon as available and in any event within 30 days after the end of each month, (i) a Consolidated balance sheet of the Parent and its Subsidiaries as of the end of such month, a Consolidated statement of income and a Consolidated
statement of cash flows of the Parent and its Subsidiaries for the period commencing at the end of the previous month and ending with the end of such month, and a Consolidated statement of income and a Consolidated statement of cash flows of the
Parent and its Subsidiaries for the period commencing at the end of the previous Fiscal Year and ending with the end of such month, setting forth in each case in comparative form the corresponding figures for the preceding month, all in reasonable
detail and duly certified by the Chief Financial Officer of the Parent, and (ii) a condensed receivables aging report, prepared in accordance with the Issuer’s customary practice from time to time, for the Obligors for such month with respect
to their major lines of business and any significant specific accounts review necessary to support bad debt allowances, certified by the Chief Financial Officer of the Parent as fairly and accurately reporting the information described therein, and
(iii) a certificate of the Chief Financial Officer of the Parent setting forth Consolidated EBITDA of the Parent and its Subsidiaries for the last twelve months then ended. 
  
 (e) Compliance Certificates: Together with each delivery of financial statements of the Parent and its Subsidiaries
pursuant to subsections (b) and (c) of this Section 5.03, an officer’s certificate of the Parent stating that the signers have reviewed the terms of this Agreement and have made, or caused to be made under their supervision, a review in
reasonable detail of the transactions and condition of the Parent and its Subsidiaries during the accounting 
  

 70 

 period covered by such financial statements and that such review has not disclosed the existence during or at the end of
such accounting period, and that the signers do not have knowledge of the existence as at the date of such officer’s certificate, of any condition or event that constitutes an Event of Default, or, if any such condition or event existed or
exists, specifying the nature and period of existence thereof and what action the Parent has taken, is taking and proposes to take with respect thereto. 
  
 (f) Reconciliation Statements: If, as a result of any change in accounting principles and policies from those used in the preparation of the
audited financial statements referred to in Section 5.03(b), the consolidated financial statements of the Parent and its Subsidiaries delivered shall differ in any material respect from the consolidated financial statements that would have
been delivered pursuant to such subdivisions had no such change in accounting principles and policies been made, then (i) together with the first delivery of financial statements following such change, consolidated financial statements of the Parent
and its Subsidiaries for (A) the current Fiscal Year to the effective date of such change and (B) the two full Fiscal Years immediately preceding the Fiscal Year in which such change is made, in each case prepared on a pro forma basis as if such
change had been in effect during such periods, and (ii) together with each delivery of financial statements following such change, if required pursuant hereto, a written statement of the Chief Financial Officer of the Parent setting forth the
differences (including any differences that would affect any calculations relating to the financial covenants set forth herein) which would have resulted if such financial statements had been prepared without giving effect to such change.

  
 (g) Forecasts and Budgets. In addition to the business
plan required to be delivered pursuant to the last sentence of this Section 5.03(g), as soon as available and in any event no later than 45 days after the end of each Fiscal Year, the following prepared by management of the Issuer, in form
satisfactory to the Agent: (i) balance sheets, income statements and cash flow statements on a monthly and annual basis for such Fiscal Year; (ii) balance sheets, income statements and cash flow statements on an annual basis for each Fiscal Year
thereafter until the Termination Date; (iii) a selling, general and administrative expense budget and a capital expenditure budget for the Obligors for each Fiscal Year in form and substance reasonably satisfactory to the Agent, and (iv) any other
information the Agent may reasonably request. Not less than 45 days before the beginning of Fiscal Years 2008 and 2009, the Parent shall deliver, or shall cause the Issuer to deliver, a business plan of ITC^DeltaCom, Inc. which sets forth the
business plan for such Fiscal Year as proposed by management and approved by the board of directors of the Parent. 
  
 (h) Litigation. Promptly after the commencement thereof, notice of all actions, suits, investigations, litigation and proceedings, or, to the
knowledge of any Obligor, non-frivolous threat thereof, before any court or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, affecting any Obligor or any of its Subsidiaries of the type described in
Section 4.01(f), and promptly after the occurrence thereof, notice of any adverse change in the status or the financial effect on any Obligor or any of its Subsidiaries of the Disclosed Litigation from that described on Schedule
4.01(f) hereto. 
  
 (i) Securities Reports. Promptly
after the sending or filing thereof, copies of all proxy statements, financial statements and reports that any Obligor or any of its Subsidiaries 
  

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 sends to its stockholders, and copies of all regular, periodic and special reports, and all registration statements, that
any Obligor or any of its Subsidiaries files with the SEC or any Governmental Authority that may be substituted therefor, or with any national securities exchange. 
  
 (j) Creditor Reports. Promptly after the furnishing thereof, copies of any statement or report furnished to any
holder of Debt securities of any Obligor or of any of its Subsidiaries pursuant to the terms of any indenture, loan or credit or similar agreement and not otherwise required to be furnished to the Note Purchasers pursuant to any other clause of this
Section 5.03. 
  
 (k) Agreement Notices. Promptly
upon receipt thereof by any Obligor or any of its Subsidiaries, copies of (i) all notices and other documents pursuant or related to any material debt instrument, indenture, loan or credit or similar agreement and (ii) all notices and other
documents regarding termination (actual or threatened), defaults, alleged or actual breaches, nonrenewal, and other material matters (other than in accordance with the terms of such agreement or material amendment) under or pursuant to any Material
Contract, only if such termination, default, breach, nonrenewal or other matter would be reasonably likely to have a Material Adverse Effect on the Obligors and their Subsidiaries, taken as a whole, and from time to time upon request by the Agent,
such information and reports regarding the related documents, the Material Contracts and such instruments, indentures and loan and credit and similar agreements as the Agent or any Note Purchaser may reasonably request. 
  
 (l) Revenue Agent Reports. Within 10 days after receipt, copies of all
Revenue Agent Reports (Internal Revenue Service Form 886), or other written proposals of the Internal Revenue Service, that propose, determine or otherwise set forth positive adjustments to the Federal income tax liability of the affiliated group
(within the meaning of Section 1504(a)(1) of the Internal Revenue Code) of which the Issuer is a member aggregating $2,000,000 or more. 
  
 (m) Tax Certificates. (x) Promptly, and in any event within 15 Business Days after the due date (with extensions) for filing the final Federal
income tax return in respect of each taxable year, a certificate (a “Tax Certificate”), signed by the President or the Chief Financial Officer of the Issuer, stating that the Obligors have paid to the Internal Revenue Service or
other taxing authority, the full amount that the Obligors are required to pay in respect of Federal income tax for such year and that the Obligors have received any amounts payable to them, and have not paid amounts in respect of taxes (Federal,
state, local or foreign) in excess of the amount they are required to pay, under the Tax Agreement in respect of such taxable year, and (y) all correspondence between any Obligor and the Internal Revenue Service or other taxing authority relating to
any request for, grant of and compliance with any extensions granted with respect to the filing of any income tax returns. 
  
 (n) ERISA. 
  
 (i) ERISA Events and ERISA Reports. (A) Promptly and in any event within 10 days after any Obligor or any ERISA Affiliate knows or
has reason to know that any ERISA Event has occurred, a statement of the Chief Financial Officer of the Issuer describing such ERISA Event and the action, if any, that such Obligor or such 
  

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 ERISA Affiliate has taken and proposes to take with respect thereto and (B) on the date any records,
documents or other information must be furnished to the PBGC with respect to any Plan pursuant to Section 4010 of ERISA, a copy of such records, documents and information. 
  
 (ii) Plan Terminations. Promptly and in any event within two Business Days after receipt thereof by
any Obligor or any ERISA Affiliate, copies of each notice from the PBGC stating its intention to terminate any Plan or to have a trustee appointed to administer any Plan. 
  
 (iii) Plan Annual Reports. Promptly and in any event within 30 days after the filing thereof with the
Internal Revenue Service, copies of each Schedule B (Actuarial Information) to the annual report (Form 5500 Series) with respect to each Plan. 
  
 (iv) Multiemployer Plan Notices. Promptly and in any event within five Business Days after receipt thereof by any Obligor or any
ERISA Affiliate from the sponsor of a Multiemployer Plan, copies of each notice concerning (A) the imposition of Withdrawal Liability by any such Multiemployer Plan, (B) the reorganization or termination, within the meaning of Title IV of ERISA, of
any such Multiemployer Plan or (C) the amount of liability incurred, or that is reasonably expected to be incurred, by such Obligor or any ERISA Affiliate in connection with any event described in clause (A) or (B). 
  
 (o) Environmental Conditions. Promptly after the assertion or
occurrence thereof, notice of any Environmental Action against or of any noncompliance by any Obligor or any of its Subsidiaries with any Environmental Law or Environmental Permit that could (i) reasonably be expected to have a Material Adverse
Effect or (ii) cause any property described in the Mortgages to be subject to any restrictions on ownership, occupancy, use or transferability under any Environmental Law. 
  
 (p) Real Property. (i) As soon as available and in any event within 30 days after the end of each Fiscal Year, a
report supplementing Schedules 4.01(w) and 4.01(x) hereto, including an identification of all owned and leased real property disposed of by any Obligor or any of its Subsidiaries during such Fiscal Year, a list and description (including the
street address, county or other relevant jurisdiction, state, record owner, book value thereof and, in the case of leases of property, lessor, lessee, expiration date and annual rental cost thereof) of all real property acquired or leased during
such Fiscal Year and a description of such other changes in the information included in such Schedules as may be necessary for such Schedules to be accurate and complete and (ii) promptly inform the Agent of any investments in any of the real
property listed on Schedule 4.01(w) hereto proposed to be made by any Obligor such that thereafter, the value thereof shall exceed $1,000,000 individually. 
  
 (q) Insurance. As soon as available and in any event within 30 days after the end of each Fiscal Year, a report
summarizing the insurance coverage (specifying type, amount and carrier) in effect for each Obligor and its Subsidiaries and containing such additional information as any Agent, or any Note Purchaser through the Agent, may reasonably specify. As
soon as practicable after any material change in insurance coverage maintained by the Parent and its Subsidiaries notice thereof to each Note Purchaser and the Agent specifying the changes and reasons therefore. 
  

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 (r) Damage or Destruction. The Issuer shall give each Note Purchaser and the Agent prompt notice
of any loss, damage, or destruction of Property in excess of $5,000,000, whether or not covered by the insurance policies described in Section 5.01(d). 
  

(s) New Accounts. Promptly after opening an account with a bank or other financial institution not subject to an account control agreement,
notification thereof. 
  
 (t) Other Information. Such other
information respecting the business, condition (financial or otherwise), operations, performance, properties or prospects of any Obligor or any of its Subsidiaries as the Agent, or any Note Purchaser through the Agent, may from time to time
reasonably request. 
  
 (u) Governing Body. With reasonable
promptness, written notice of any change in the Governing Body of any Obligor. 
  
 (v) New Subsidiaries. Promptly upon any Person becoming a Subsidiary, a written notice setting forth with respect to such Person (a) the date on which such Person became a Subsidiary and (b) the jurisdiction of
its incorporation, its directors and senior officers, the number of shares of each class of its Equity Interests authorized, and the number then outstanding and the percentage of each such class of its Equity Interests owned (directly or indirectly)
by an Obligor and the number of shares covered by all outstanding options, warrants, rights of conversion or purchase and similar rights at the date thereof. 
  
 ARTICLE VI. EVENTS OF DEFAULT 
  
 Section 6.01 Events of Default. If any of the following events (“Events of Default”) shall occur and be continuing: 
  
 (a) (i) the Issuer shall fail to pay any principal of any Note when the same
shall become due and payable or (ii) the Issuer shall fail to pay any interest on any Note, or any Obligor shall fail to make any other payment under any Note Purchase Document, in each case under this clause (ii) within three Business Days after
the same becomes due and payable; or 
  
 (b) any representation or
warranty made by any Obligor (or any of its officers) under or in connection with any Note Purchase Document shall prove to have been incorrect or false in any material respect when made; or 
  
 (c) any Obligor shall fail to perform, comply or observe any term, covenant
or agreement contained in Sections 2.03, 5.01 (e), (f), (i), (j), (m), (n) (r) or (s), 5.02 or 5.03; provided, that failure to comply with the covenants set forth in Sections 2.03, 5.01(r) or 5.01(s)
shall not constitute an Event of Default unless and until such failure shall remain unremedied for three Business Days; and provided, further, that failure to comply with any other covenants hereunder for which specific cure periods
are otherwise provided herein shall not constitute an Event of Default unless and until such failure shall remain unremedied for the duration of the applicable specific cure period so provided; or 
  

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 (d) any Obligor shall fail to perform or observe any other term, covenant or agreement contained in any
Note Purchase Document on its part to be performed or observed if such failure shall remain unremedied for 30 days after the earlier of the date on which (i) a Responsible Officer becomes aware of such failure or (ii) written notice thereof shall
have been given to the Issuer by any Agent or any Note Purchaser; or 
  
 (e) any Obligor or any of its Subsidiaries shall fail to pay any principal of, premium or interest on or any other amount payable in respect of any Debt that is outstanding in a principal amount (or, in the case of any Hedge Agreement, an
Agreement Value) of at least $2,000,000 either individually or in the aggregate (but excluding Debt outstanding hereunder) of such Obligor or such Subsidiary (as the case may be), when the same becomes due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise); or any other event shall occur or condition shall exist under any agreement or instrument relating to any such Debt, if the effect of such event or condition is to accelerate, or to permit the
acceleration of, the maturity of such Debt or otherwise to cause, or to permit the holder thereof to cause, such Debt to mature; or any such Debt shall be declared to be due and payable or required to be prepaid or redeemed (other than by a
regularly scheduled required prepayment or redemption), purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof; or 
  
 (f) 
  
 (i) A court having jurisdiction shall enter a decree or order for relief in respect of any Obligor or any of
its Subsidiaries in an involuntary case under the U.S. Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, which decree or order is not stayed; or any other similar relief shall be granted
under any applicable federal or state law; or 
  
 (ii) an involuntary case shall be commenced against any Obligor or any of its Subsidiaries under the U.S. Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect; or a decree or order
of a court having jurisdiction in the premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers over any Obligor or any of its Subsidiaries, or over all or a substantial part of
its property, shall have been entered; or there shall have occurred the involuntary appointment of an interim receiver, trustee or other custodian of any Obligor or any of its Subsidiaries for all or a substantial part of its property; or a warrant
of attachment, execution or similar process shall have been issued against any substantial part of the property of any Obligor or any of its Subsidiaries, and any such event described in this clause (ii) shall continue for 60 days unless dismissed,
bonded or discharged; or 
  
 (iii) any Obligor or
any of its Subsidiaries shall have an order for relief entered with respect to it or commence a voluntary case under the U.S. Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or shall
consent to the entry of an order for relief in an involuntary case, or to the conversion of an involuntary case to a voluntary case, under any such law, or shall consent to the appointment of or taking possession by a receiver, trustee or other
custodian for all or a substantial part of its property; or any Obligor or any of its Subsidiaries shall make any assignment for the benefit of creditors; or 
  

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 (iv) any Obligor or any of its Subsidiaries shall be unable, or shall fail generally, or
shall admit in writing its inability, to pay its debts as such debts become due; or the Governing Body of any Obligor or any of its Subsidiaries (or any committee thereof) shall adopt any resolution or otherwise authorize any action to approve any
of the actions referred to in clause (iii) above or this clause (iv); or 
  
 (g) one or more judgments or decrees shall be entered against any one or more Obligors or any of their Subsidiaries and such judgments and decrees either shall be final and non-appealable or shall not be vacated,
discharged or stayed for any period of 10 consecutive days, and the aggregate amount of all such judgments (to the extent not paid or to the extent not covered by insurance provided by a carrier that has acknowledged coverage) equals or exceeds
$5,000,000; or 
  
 (h) any non-monetary judgment or order shall be
rendered against any Obligor or any of its Subsidiaries that could be reasonably likely to have a Material Adverse Effect, and there shall be any period of 10 consecutive days during which a stay of enforcement of such judgment or order, by reason
of a pending appeal or otherwise, shall not be in effect; or 
  
 (i) any material license issued by the FCC or any applicable PUC necessary for the conduct of the business of the Obligors shall have been (x) revoked and such license shall not have been reinstated within 60 days or (y) amended and such
amendment would reasonably be likely to result in a Material Adverse Effect; or 
  
 (j) any provision of any Note Purchase Document after delivery thereof pursuant to Section 3.01 or 5.01(j) or (n) shall for any reason cease to be valid and binding on or enforceable against any Obligor
to it, or any such Obligor shall so state in writing; or 
  
 (k)
any Collateral Document after delivery thereof pursuant to Section 3.01 or 5.01(j) shall for any reason (other than pursuant to the terms thereof) cease to create a valid and perfected first priority lien on and security interest in the
Collateral purported to be covered thereby or shall cease to be in full force and effect; or 
  
 (l) a Change of Control shall occur; or 
  
 (m) any ERISA Event shall have occurred with respect to a Plan and the sum (determined as of the date of occurrence of such ERISA Event) of the Insufficiency of such Plan and the Insufficiency of any and all other Plans with respect to
which an ERISA Event shall have occurred and then exist (or the liability of the Obligors and the ERISA Affiliates related to such ERISA Event) exceeds $2,000,000; or 
  
 (n) any Obligor or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan that it has incurred
Withdrawal Liability to such Multiemployer Plan in an amount that, when aggregated with all other amounts required to be paid to Multiemployer Plans by the Obligors and the ERISA Affiliates as Withdrawal Liability (determined as of the date of such
notification), exceeds $2,000,000 or requires payments exceeding $1,000,000 per annum; or 
  

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 (o) any Obligor or any ERISA Affiliate shall have been notified by the sponsor of a Multiemployer Plan
that such Multiemployer Plan is in reorganization or is being terminated, within the meaning of Title IV of ERISA, and as a result of such reorganization or termination the aggregate annual contributions of the Obligors and the ERISA Affiliates to
all Multiemployer Plans that are then in reorganization or being terminated have been or shall be increased over the amounts contributed to such Multiemployer Plans for the plan years of such Multiemployer Plans immediately preceding the plan year
in which such reorganization or termination occurs by an amount exceeding $1,000,000; or 
  
 (p) an “Event of Default” (as defined in any Mortgage) shall have occurred and be continuing; or 
  
 (q) an “Event of Default” shall have occurred and be continuing under the Second Amended Second Lien Credit Agreement or the New Third Lien
Securities Purchase Agreement; or 
  
 (r) the Parent Guaranty or
the Subsidiary Guaranty with respect to any Subsidiary Guarantor shall cease to be in full force and effect or the Parent or any Subsidiary Guarantor or any Person acting on behalf of the Parent or any Subsidiary Guarantor shall contest in any
manner the validity, binding nature or enforceability of the Parent Guaranty or the Subsidiary Guaranty; or 
  
 (s) any Interconnection Agreement shall have been terminated by any party thereto and the applicable Obligor shall not have entered into a replacement
Interconnection Agreement substantially similar in scope on commercially reasonable terms within 30 days and such termination is reasonably likely to result in a Material Adverse Effect; or 
  
 (t) the Parent or any of its Subsidiaries shall be convicted under any
criminal law that could reasonably be expected to lead to a forfeiture of any material property of such Person; or 
  
 (u) the directors and officers’ insurance coverage maintained pursuant to Section 5.01(d) shall lapse or fail to cover representatives of the
Agent and/or Note Purchasers who are members of the board of directors of the Parent; or 
  
 (v) any event or change shall occur that has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect, and shall remain unremedied for a period of 30 days; or 
  
 (w) any payment by the Parent or any of its Subsidiaries (or any agreement by
the Parent or its Subsidiaries to make payment) of money to another party to an Interconnection Agreement in settlement of any dispute in excess of $25,000,000 above the accrued or reserved costs for any such payment in the Consolidated financial
statements of the Parent and its Subsidiaries provided to the Note Purchasers under Section 5.03: 
  

 77 

 then, and in any such event, the Agent shall at the request, or may with the consent, of the Required Holders, by notice
to the Issuer, declare the Notes, all interest thereon, the Prepayment Fee and all other amounts payable under this Agreement and the other Note Purchase Documents to be forthwith due and payable, whereupon the Notes, all such interest and all such
amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Issuer; provided, however, that in the event of an actual
or deemed entry of an order for relief with respect to the Issuer under the Bankruptcy Code, the Notes, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of
any kind, all of which are hereby expressly waived by the Issuer. 
  
 ARTICLE VII. GUARANTY 
  
 Section 7.01
Guaranty; Limitation of Liability. 
  
 (a) Each Guarantor,
jointly and severally, hereby absolutely, unconditionally and irrevocably guarantees the punctual payment when due, whether at scheduled maturity or on any date of a required prepayment or by acceleration, demand or otherwise, of all Obligations of
each other Obligor now or hereafter existing under or in respect of the Note Purchase Documents (including, without limitation, any extensions, modifications, substitutions, amendments or renewals of any or all of the foregoing Obligations), whether
direct or indirect, absolute or contingent, and whether for principal, interest, premiums, fees, indemnities, contract causes of action, costs, expenses or otherwise (such obligations being the “Guaranteed Obligations”), and agrees
to pay any and all reasonable expenses (including, without limitation, reasonable fees and expenses of counsel) incurred by the Agent or any other Secured Party in enforcing any rights under this Agreement or any other Note Purchase Document.
Without limiting the generality of the foregoing, each Guarantor’s liability shall extend to all amounts that constitute part of the Guaranteed Obligations and would be owed by any other Obligor to any Secured Party under or in respect of the
Note Purchase Documents but for the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving such other Obligor. 
  
 (b) Each Guarantor, and by its acceptance of this Agreement, the Agent and
each other Secured Party, hereby confirms that it is the intention of all such Persons that this Agreement and the Obligations of each Guarantor hereunder not constitute a fraudulent transfer or conveyance for purposes of the Bankruptcy Code, the
Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty and the Obligations of each Guarantor hereunder. To effectuate the foregoing intention, the
Agent, the other Note Purchasers and the Guarantors hereby irrevocably agree that the obligations of each Guarantor under this Guaranty at any time shall be limited to the maximum amount as shall result in the Obligations of such Guarantor under
this Agreement not constituting a fraudulent transfer or conveyance. 
  
 (c) Each Guarantor hereby unconditionally and irrevocably agrees that in the event any payment shall be required to be made to any Secured Party under this Agreement or any other guaranty, such Guarantor shall contribute, to the maximum
extent permitted by law, 
  

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 such amounts to each other Guarantor and each other guarantor so as to maximize the aggregate amount paid to the Secured
Parties under or in respect of the Note Purchase Documents. 
  
 Section 7.02 Guaranty Absolute. Each Guarantor guarantees that the Guaranteed Obligations shall be paid strictly in accordance with the terms of the Note Purchase Documents, regardless of any law, regulation or order now or hereafter
in effect in any jurisdiction affecting any of such terms or the rights of any Note Purchaser with respect thereto. The obligations of each Guarantor under or in respect of this Agreement are independent of the Guaranteed Obligations or any other
obligations of any other Obligor under or in respect of the Note Purchase Documents, and a separate action or actions may be brought and prosecuted against each Guarantor to enforce this Agreement, irrespective of whether any action is brought
against the Issuer or any other Obligor or whether the Issuer or any other Obligor is joined in any such action or actions. The liability of each Guarantor under this Agreement shall be irrevocable, absolute and unconditional irrespective of, and
each Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to, any or all of the following: 
  
 (a) any lack of validity or enforceability of any Note Purchase Document or any agreement or instrument relating thereto; 
  
 (b) any change in the time, manner or place of payment of, or in any other
term of, all or any of the Guaranteed Obligations or any other obligations of any other Obligor under or in respect of the Note Purchase Documents, or any other amendment or waiver of or any consent to departure from any Note Purchase Document,
including, without limitation, any increase in the Guaranteed Obligations resulting from the extension of additional credit to any Obligor or any of its Subsidiaries or otherwise; 
  
 (c) any taking, exchange, release or non-perfection of any collateral, or any taking, release or amendment or waiver of, or
consent to departure from, any other guaranty, for all or any of the Guaranteed Obligations; 
  
 (d) any manner of application of Collateral or any other collateral, or proceeds thereof, to all or any of the Guaranteed Obligations, or any manner of sale or other disposition of any collateral for all or any of the
Guaranteed Obligations or any other obligations of any Obligor under the Note Purchase Documents or any other assets of any Obligor or any of its Subsidiaries; 
  

(e) any change, restructuring or termination of the corporate structure or existence of any Obligor or any of its Subsidiaries; 
  
 (f) any failure of any Secured Party to disclose to any Obligor any
information relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other Obligor now or hereafter known to such Secured Parties (each Guarantor waiving any duty on the part of the
Secured Parties to disclose such information); 
  
 (g) the failure
of any other Person to execute or deliver this Agreement, any Guaranty Supplement or any other guaranty or agreement or the release or reduction of liability of any Guarantor or other guarantor or surety with respect to the Guaranteed Obligations;
or 
  

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 (h) any other circumstance (including, without limitation, any statute of limitations) or any existence
of or reliance on any representation by any Secured Party that might otherwise constitute a defense available to, or a discharge of, any Obligor or any other guarantor or surety. 
  
 This Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Guaranteed
Obligations is rescinded or must otherwise be returned by the Agent or any Secured Party or any other Person upon the insolvency, bankruptcy or reorganization of the Issuer or any other Obligor or otherwise, all as though such payment had not been
made. 
  
 Section 7.03 Waivers and Acknowledgments.

  
 (a) Each Guarantor hereby unconditionally and irrevocably
waives promptness, diligence, notice of acceptance, presentment, demand for performance, notice of nonperformance, default, acceleration, protest or dishonor and any other notice with respect to any of the Guaranteed Obligations and this Agreement
and any requirement that any Secured Party protect, secure, perfect or insure any Lien or any property subject thereto or exhaust any right or take any action against any Obligor or any other Person or any Collateral. 
  
 (b) Each Guarantor hereby unconditionally and irrevocably waives any right to
revoke this Agreement and acknowledges that this Agreement is continuing in nature and applies to all Guaranteed Obligations, whether existing now or in the future. 
  
 (c) Each Guarantor hereby unconditionally and irrevocably waives (i) any defense arising by reason of any claim or defense
based upon an election of remedies by any Secured Party that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of such Guarantor or other
rights of such Guarantor to proceed against any of the other Obligors, any other guarantor or any other Person or any collateral and (ii) any defense based on any right of set-off or counterclaim against or in respect of the Obligations of such
Guarantor hereunder. 
  
 (d) Each Guarantor hereby unconditionally
and irrevocably waives any duty on the part of any Secured Party to disclose to such Guarantor any matter, fact or thing relating to the business, condition (financial or otherwise), operations, performance, properties or prospects of any other
Obligor or any of its Subsidiaries now or hereafter known by such Secured Party. 
  
 (e) Each Guarantor acknowledges that it shall receive substantial direct and indirect benefits from the financing arrangements contemplated by the Note Purchase Documents and that the waivers set forth in Section
7.02 and this Section 7.03 are knowingly made in contemplation of such benefits. 
  
 Section 7.04 Subrogation. Each Guarantor hereby unconditionally and irrevocably agrees not to exercise any rights that it may now have or hereafter acquire against the Issuer or any other Obligor or any other
inside guarantor that arise from the existence, payment, performance or enforcement of such Guarantor’s Obligations under or in respect of this Agreement or any other Note Purchase Document, including, without limitation, any right of

  

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 subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or
remedy of any Secured Party against the Issuer, any other Obligor or any other insider guarantor or any Collateral, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including, without limitation,
the right to take or receive from the Issuer, any other Obligor or any other insider guarantor, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security on account of such claim, remedy or right,
unless and until all of the Guaranteed Obligations and all other amounts payable under this Agreement shall have been paid in full in cash. If any amount shall be paid to any Guarantor in violation of the immediately preceding sentence at any time
prior to the latest of (a) the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this Agreement, and (b) the Termination Date, such amount shall be received and held in trust for the benefit of the Secured
Parties, shall be segregated from other property and funds of such Guarantor and shall forthwith be paid or delivered to the Agent in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the
Guaranteed Obligations and all other amounts payable under this Agreement, whether matured or unmatured, in accordance with the terms of the Note Purchase Documents, or to be held as collateral for any Guaranteed Obligations or other amounts payable
under this Agreement thereafter arising. If (i) any Guarantor shall make payment to any Secured Party of all or any part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and all other amounts payable under this Agreement shall
have been paid in full in cash, and (iii) the Termination Date shall have occurred, the Secured Parties will, at such Guarantor’s request and expense, execute and deliver to such Guarantor appropriate documents, without recourse and without
representation or warranty, necessary to evidence the transfer by subrogation to such Guarantor of an interest in the Guaranteed Obligations resulting from such payment made by such Guarantor pursuant to this Agreement. 
  
 Section 7.05 Guaranty Supplements. Upon the execution and delivery by
any Person of a guaranty supplement in substantially the form of Exhibit G hereto (each, a “Guaranty Supplement”), (a) such Person shall be referred to as a “Additional Guarantor” and shall become and be a
Guarantor hereunder, and each reference in this Agreement to a “Guarantor” shall also mean and be a reference to such Additional Guarantor, and each reference in any other Note Purchase Document to a “Subsidiary
Guarantor” shall also mean and be a reference to such Additional Guarantor, and (b) each reference herein to “this Guaranty,” “hereunder,” “hereof” or words of like import referring to this
Agreement, and each reference in any other Note Purchase Document to the “Guaranty,” “thereunder,” “thereof” or words of like import referring to this Agreement, shall mean and be a reference to
this Agreement as supplemented by such Guaranty Supplement. 
  
 Section 7.06 Subordination. Each Guarantor hereby subordinates any and all debts, liabilities and other Obligations owed to such Guarantor by each other Obligor (the “Subordinated Obligations”) to the Guaranteed
Obligations to the extent and in the manner hereinafter set forth in this Section 7.06: 
  
 (a) Prohibited Payments, Etc. Except during the continuance of a Default (including the commencement and continuation of any proceeding under any
Bankruptcy Law relating to any other Obligor), each Guarantor may receive regularly scheduled payments from any other Obligor on account of the Subordinated Obligations. After the occurrence and during 
  

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 the continuance of any Default (including the commencement and continuation of any proceeding under any bankruptcy law
relating to any other Obligor), however, unless the Required Holders otherwise agree, no Guarantor shall demand, accept or take any action to collect any payment on account of the Subordinated Obligations. 
  
 (b) Prior Payment of Guaranteed Obligations. In any proceeding under
the Bankruptcy Code (or similar law) relating to any other Obligor, each Guarantor agrees that the Secured Parties shall be entitled to receive payment in full in cash of all Guaranteed Obligations (including Post-Petition Interest) before such
Guarantor receives payment of any Subordinated Obligations. 
  
 (c) Turn-Over. After the occurrence and during the continuance of any Default (including the commencement and continuation of any proceeding under any Bankruptcy Law relating to any other Obligor), each Guarantor shall, if the Agent
so requests, collect, enforce and receive payments on account of the Subordinated Obligations as trustee for the Secured Parties and deliver such payments to the Agent on account of the Guaranteed Obligations (including all Post-Petition Interest),
together with any necessary endorsements or other instruments of transfer, but without reducing or affecting in any manner the liability of such Guarantor under the other provisions of this Agreement. 
  
 (d) Agent Authorization. After the occurrence and during the
continuance of any Default (including the commencement and continuation of any proceeding under the Bankruptcy Code (or similar law) relating to any other Obligor), the Agent is authorized and empowered (but without any obligation to so do), in its
discretion, (i) in the name of each Guarantor, to collect and enforce, and to submit claims in respect of, Subordinated Obligations and to apply any amounts received thereon to the Guaranteed Obligations (including any and all Post-Petition
Interest), and (ii) to require each Guarantor (A) to collect and enforce, and to submit claims in respect of, Subordinated Obligations and (B) to pay any amounts received on such obligations to the Agent for application to the Guaranteed Obligations
(including any and all Post-Petition Interest). 
  
 Section 7.07
Continuing Guaranty; Assignments. This Agreement is a continuing guaranty and shall (a) remain in full force and effect until the latest of (i) the payment in full in cash of the Guaranteed Obligations and all other amounts payable under this
Agreement and (ii) the Termination Date, (b) be binding upon the Guarantor, its successors and assigns and (c) inure to the benefit of and be enforceable by the Secured Parties and their successors, transferees and assigns. Without limiting the
generality of clause (c) of the immediately preceding sentence, subject to Section 9.07, any Secured Party may assign or otherwise transfer all or any portion of its rights and obligations under this Agreement (including, without limitation,
all or any portion of its Notes owing to it and the Note or Notes held by it) to any other Person, and such other Person shall thereupon become vested with all the benefits in respect thereof granted to such Secured Party herein or otherwise, in
each case as and to the extent provided in Section 9.07. No Guarantor shall have the right to assign its rights hereunder or any interest herein without the prior written consent of the Secured Parties. 
  
 Section 7.08 Release of Guarantor. In the event that all of the
capital stock of one or more Guarantors is sold or otherwise disposed of (except to the Issuer, BTI or any 
  

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 Subsidiary of the Issuer or BTI) or liquidated in compliance with the requirements of this Agreement (or such sale or
other disposition or liquidation has been approved in writing by the Required Holders) and the proceeds of such sale, disposition or liquidation are applied in accordance with the provisions of this Agreement, to the extent applicable, such
Guarantor shall be released from this Agreement and this Agreement shall, as to each such Guarantor or Guarantors, terminate, and have no further force or effect (it being understood and agreed that the sale of one or more persons that own, directly
or indirectly, all of the capital stock or partnership interests of any Guarantor shall be deemed to be a sale of such Guarantor for the purposes of this Section 7.08). 
  
 ARTICLE VIII. ADDITIONAL POWERS OF AGENTS 
  
 Section 8.01 Appointment. Each of the Note Purchasers hereby irrevocably appoints the Agent as its agent hereunder
and under the other Note Purchase Documents, and the Collateral Agent as its collateral agent to act on behalf of the Note Purchasers hereunder and under the other Note Purchase Documents, and in each case authorizes the Agent and the Collateral
Agent to take such actions on its behalf and to exercise such powers as are delegated to the Agent and/or the Collateral Agent by the terms hereof or thereof, together with such actions and powers as are reasonably incidental thereto, including,
without limitation, the right of the Collateral Agent to sign, file or authorize the filing of, and otherwise perform each act necessary in connection with, the release of any lien as a result of any permitted sale, lease, transfer or disposal of
assets in accordance with the Note Purchase Documents. Any reference herein to the Agent shall include the Agent in its capacity as Agent hereunder and in any Note Purchase Document and any reference herein to the Collateral Agent shall include the
Collateral Agent in its capacity as Collateral Agent hereunder and under any Note Purchase Document. Each Note Purchaser does hereby make, constitute and appoint the Agent or the Collateral Agent, as the case may be, its true and lawful
attorney-in-fact with full powers of substitution and resubstitution for such Note Purchaser and in its name, place and stead, in any and all capacities, to execute for such Note Purchaser and on its behalf any document or agreement for which the
Agent or the Collateral Agent, as the case may be, is empowered to act on behalf of such Note Purchaser under this Article VIII, granting to the Agent or the Collateral Agent, as the case may be, full power and authority to do and perform
each act requisite and necessary to be done, as fully to all intents and purposes as the Note Purchaser could do in person, provided that such power shall be granted only to the extent necessary to undertake the actions permitted to be done or taken
by the Agent or the Collateral Agent under this Article VIII and the Note Purchase Documents. Each of the Note Purchasers hereby irrevocably authorizes the Agents to take such action on their behalf under the provisions of this Agreement, the
other Note Purchase Documents and any other instruments and agreements referred to herein or therein and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of the Agents by the
terms hereof and thereof and such other powers as are reasonably incidental hereto and thereto. The Agent and the Collateral Agent may perform any of their respective duties hereunder by or through their respective officers, directors, agents,
employees or affiliates. Neither the Agent and the Collateral Agent shall have, by reason of this Agreement or any of the other Note Purchase Documents, a fiduciary relationship in respect of any Note Purchaser or the Parent, and nothing in this
Agreement or any of the other Note Purchase Documents, expressed or implied, is intended to or shall be so construed as to impose upon the Agent and the Collateral Agent any obligations in respect of this Agreement or any of 
  

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 the other Note Purchase Documents except as expressly set forth herein or therein. Each Note Purchaser hereby accepts the
pledges, mortgages and fiduciary assignments created for its benefit under the Security Agreement and empowers the Collateral Agent to enter into such agreements and act as Collateral Agent on behalf and for the benefit of each Note Purchaser. The
provisions of this Article VIII are solely for the benefit of the Agent and the Collateral Agent and the Note Purchasers, and neither the Parent nor any of the Subsidiaries or Affiliates of the Parent shall have any rights as a third party
beneficiary of any of the provisions hereof. In performing its functions and duties under this Agreement, the Agent and the Collateral Agent shall act solely as agents of the Note Purchasers and neither the Agent nor the Collateral Agent shall
assume and shall be deemed to have assumed any fiduciary relationship or other obligation or relationship of agency or trust with the Parent or for any of its Subsidiaries or Affiliates. 
  
 Section 8.02 Rights of Agent. With respect to its obligation to make Notes under this Agreement, the Agent shall have
the rights and powers specified herein for a “Note Purchaser” and may exercise the same rights and powers as though it were not performing the duties specified herein; and the term “Note Purchasers,” “Required Holders,”
“holders of Notes” or any similar terms shall, unless the context clearly otherwise indicates, include the Agent in its individual capacity as such (as the case may be). The Agent and its affiliates may accept deposits from, lend money to,
and generally engage in any kind of banking, investment banking, trust or other business with, or provide debt financing, equity capital or other services (including financial advisory services) to, the Parent or any of their Affiliates (or any
Person engaged in similar business with the Parent or any Affiliate thereof) as if they were not performing the duties specified herein, and may accept fees and other consideration from the Parent or any of their Affiliates for services in
connection with this Agreement and otherwise without having to account for the same to the Note Purchasers. 
  
 Section 8.03 Administration of the Collateral. The Collateral Agent shall administer the Collateral and any Lien thereon for the benefit of the
Note Purchasers in the manner provided herein and in the Security Agreement and in any other related Note Purchase Documents; provided, however, that in the event of conflict between the provisions relating to administration of
Collateral included in this Agreement and those included in the Security Agreement, the latter shall prevail. The Collateral Agent shall exercise such rights and remedies with respect to the Collateral as are granted to it hereunder and as
Collateral Agent under the Security Agreement and related documents and applicable law and as shall be directed by the Required Holders. Upon payment in full of all Obligations under the Note Purchase Documents, the Collateral Agent and its
Affiliates shall promptly release any and all Liens, Collateral and other security arrangements entered into in connection with this Agreement, the Note Purchase Documents and the transactions contemplated hereby and thereby. 
  
 Section 8.04 Application of Proceeds. Except as otherwise specifically
provided herein and in the other Note Purchase Documents, the proceeds of any collection, sale, disposition, foreclosure or other realization of all or any part of the Collateral shall be applied by the Collateral Agent in the following order of
priority: 
  
 (a) FIRST: to the payment of all costs, taxes and
expenses of such collection, sale, disposition, foreclosure or other realization, including reasonable compensation to the Collateral Agent, the Agent, and their respective agents and counsel in connection therewith, and 
  

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 all other expenses, liabilities and advances made or incurred by the Agent or Collateral Agent in connection therewith,
and all amounts for which the Collateral Agent is entitled to indemnification under any Collateral Document and all advances made by the Agent or Collateral Agent under any Collateral Document for the account of any Obligor, and to the payment of
all costs and expenses paid or incurred by the Agent or Collateral Agent in connection with the exercise of any right or remedy under any Collateral Document; 
  

(b) SECOND: to the payment of any other amounts payable to the Agent in its capacity as Agent under the Note Purchase Documents; 
  
 (c) THIRD: to the payment of the accrued and unpaid interest in respect of
the Notes; 
  
 (d) FOURTH: to the payment of the outstanding
principal and Prepayment Fee due under the Notes, if any; 
  
 (e)
FIFTH: to the payment of all other unpaid Obligations of the Obligors under the Note Purchase Documents, if any; and 
  
 (f) SIXTH: any surplus remaining after payment of the foregoing amounts shall be paid to the Issuer by the Agent, subject, however, to the rights of the
holder of any then existing Lien of which the Agent has actual notice (without investigation); it being understood that the Issuer shall remain liable to the extent of any deficiency between the amount of the proceeds of the Collateral and the
aggregate amount of the sums referred to in clauses (a) through (e) of this Section 8.04. 
  
 Section 8.05 Duties of Agents. The Agent and the Collateral Agent shall not have any duties or obligations except those expressly set forth herein
and in the other Note Purchase Documents. Without limiting the generality of the foregoing, (a) neither the Agent nor the Collateral Agent shall be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is
continuing, (b) neither the Agent nor the Collateral Agent shall have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated hereby or by the other Note Purchase
Documents that the Agent or the Collateral Agent is required to exercise in writing by the Required Holders, and (c) except as expressly set forth herein and in the other Note Purchase Documents, neither the Agent nor the Collateral Agent shall have
any duty to disclose, nor shall be liable for the failure to disclose, any information relating to the Parent or any of its Subsidiaries that is communicated to or obtained by the entity serving as the Agent, Collateral Agent or any of their
Affiliates in any capacity. Neither the Agent nor the Collateral Agent shall be liable for any action taken or not taken by it with the consent or at the request of the Required Holders or in the absence of its own gross negligence or willful
misconduct. Neither the Agent nor the Collateral Agent shall be deemed to have knowledge of any Default unless and until notice thereof is given to the Agent or Collateral Agent by the Parent or a Note Purchaser, and neither the Agent nor the
Collateral Agent shall be responsible for or have any duty to ascertain or inquire into (v) any statement, warranty or representation made in or in connection with this Agreement or any other Note Purchase Document, (w) the contents of any
certificate, report or other document delivered hereunder or thereunder or in connection herewith or therewith, (x) the 
  

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 performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein,
(y) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Note Purchase Document or any other agreement, instrument or document, or (z) the satisfaction of any condition set forth herein or therein, other than to
confirm receipt of items expressly required to be delivered to the Agent or the Collateral Agent. In the event that the Agent or the Collateral Agent receives such a notice, such agent shall give prompt notice thereof to the other Note Purchasers
and the Parent (if received from a Note Purchaser) or to the Note Purchasers (if received from the Parent). 
  
 Section 8.06 Reliance by Agents. The Agent and the Collateral Agent shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the proper Person. The Agent and the Collateral Agent also may rely upon any statement
made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Agent and the Collateral Agent may consult with legal counsel (who may be counsel for a Note Purchaser,
the Parent or any Subsidiary), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
  
 Section 8.07 Appointment of Sub-Agents. The Agent and the Collateral
Agent may perform any and all their respective duties and exercise its rights and powers by or through any one or more sub-agents appointed by the applicable Agent or the Collateral Agent, as applicable. The Agent, the Collateral Agent and any such
sub-agents may perform any and all its duties and exercise its rights and powers through their respective Affiliates. The exculpatory provisions of the preceding paragraphs shall apply to any such sub-agents and to the Affiliates of the Agent and
the Collateral Agent and shall apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as activities as the Agent and the Collateral Agent. 
  
 Section 8.08 Resignation of Agents. The Agent and the Collateral Agent
may resign at any time by notifying the Note Purchasers and the Parent. Upon any such resignation, the Required Holders shall have the right, in consultation with the Parent, to appoint a successor. If no successor shall have been so appointed by
the Required Holders and shall have accepted such appointment within 30 days after the retiring the agent gives notice of its resignation, then the retiring agent may, upon not less than ten days’ notice, on behalf of the Note Purchasers,
appoint a successor Agent or Collateral Agent, as the case may be, or confer all the rights of the agent on the Required Holders. Upon the acceptance of its appointment as the Agent or Collateral Agent hereunder by a successor, such successor shall
succeed to and become vested with all the rights, powers, privileges and duties of the retiring (or retired) agent and the retiring agent shall be discharged from its duties and obligations hereunder. The fees payable by the Parent to a successor
Agent or Collateral Agent shall be the same as those payable to its predecessor unless otherwise agreed between the Parent and such successor. After the Agent’s or Collateral Agent’s resignation(s) hereunder, the provisions of this Section
shall continue in effect for its benefit in respect of any actions taken or omitted to be taken by it while it was acting as the Agent or Collateral Agent. 
  

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 Section 8.09 Note Purchaser Non-Reliance. Independently and without reliance upon the Agent or the
Collateral Agent, each Note Purchaser, to the extent it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of the Parent and its Subsidiaries in connection with the
issuance of the Notes and the taking or not taking of any action in connection herewith and (ii) its own appraisal of the creditworthiness of the Parent and its Subsidiaries and, except as expressly provided in this Agreement, neither the Agent nor
the Collateral Agent shall have any duty or responsibility, either initially or on continuing basis, to provide any Note Purchaser with any credit or other information with respect thereto, whether coming into its possession before the issuance of
the Notes or at any time or times thereafter. Neither the Agent nor the Collateral Agent shall be responsible to any Note Purchaser for any recitals, statements, information, representations or warranties herein or in any document, certificate or
other writing delivered in connection herewith or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectibility, priority or sufficiency of this Agreement or any other Note Purchase Document or the financial
condition of the Parent or any Subsidiary or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of this Agreement or any other Note Purchase Document, or the financial
condition of the Parent or any subsidiary or the existence or possible existence of any Default or Event of Default. 
  
 Section 8.10 Indemnification. To the extent the Agent or Collateral Agent is not reimbursed and indemnified by the Issuer or other Obligors, the
Note Purchasers shall reimburse and indemnify the Agent and the Collateral Agent in proportion to their respective “percentage” as used in determining the Required Holders for and against any and all liabilities, obligations, losses,
damages, penalties, claims, actions, judgments, costs, expenses or disbursements of whatsoever kind or nature (including fees and disbursements of any counsel or financial advisor engaged by such Agent and/or the Collateral Agent) which may be
imposed on, asserted against or incurred by the Agent or the Collateral Agent in performing its duties hereunder or under any other Note Purchase Document or in any way relating to or arising out of this Agreement or any other Note Purchase
Document; provided, however, that no Note Purchaser shall be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting from such
agent’s gross negligence or willful misconduct. If the indemnity furnished to the Agent or Collateral Agent by any Note Purchaser for any purpose shall, in the opinion of such agent be insufficient or become impaired, such agent may call for
additional indemnity from such Note Purchaser (but not any other Note Purchaser) and cease, or not commence, to do the acts indemnified against until such additional indemnity is furnished. The agreements in this Section 8.10 shall survive
the payment of all Obligations. 
  
 Section 8.11 Holders.
The Agent and the Collateral Agent may deem and treat the payee of any Note as the owner thereof for all purposes hereof unless and until a written notice of the assignment, transfer or endorsement thereof. Any request, authority or consent of any
Person who, at the time of making such request or giving such authority or consent, is the holder of any Note shall be conclusive and binding on any subsequent holder, transferee, assignee or endorsee, as the case may be, of such Note or of any Note
or Notes issued in exchange therefor. 
  

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 Section 8.12 Action by Agents. The Agent and the Collateral Agent may take any action on behalf of
the Required Holders that has been approved by the Required Holders and any action that has otherwise been specified herein or in any of the other Note Purchase Documents. For the avoidance of doubt, but subject to Section 10.01, the Agent
and the Collateral Agent may, with the prior consent of the Required Holders (but not otherwise) consent to any amendment, restatement, supplement, waiver or other modification under any of the Note Purchase Documents. 
  
 ARTICLE IX. CERTAIN PAYMENTS 
  
 Section 9.01 Pro Rata Treatment. 
  
 (a) Except as otherwise provided herein, each payment of principal and
interest on the Notes shall be made or shared among the Note Purchasers pro rata according to the respective unpaid principal amounts of the Notes held by such Note Purchasers. 
  
 (b) The Note Purchasers hereby agree among themselves that if any Note Purchaser shall obtain any payment (whether
voluntary, involuntary, through the exercise of any right of setoff, or otherwise) on account of the Notes held by it, in excess of its ratable share of payments on account of such Notes obtained by all Note Purchasers entitled to such payments,
such Note Purchaser shall promptly (i) turn the same (in kind) over to the other Note Purchasers to the extent necessary so that each Note Purchaser has received such payments in accordance with Section 9.01(a) or (ii) purchase, without
recourse or warranty, from the other Note Purchasers such participation in the Notes, as the case may be, as shall be necessary to cause such purchasing Note Purchaser to share the excess payment ratably with each of them; provided, however, that if
all or any portion of such excess payment is thereafter recovered from such purchasing party, such purchase shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefore shall be returned to
such purchasing party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment. The Issuer agrees that any Note Purchaser so purchasing a participation
from another Note Purchaser pursuant to this Section 9.02(b) may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of setoff) with respect to such participation as fully as if such Note Purchaser
were the direct creditor of the Issuer in the amount of such participation. 
  
 Section 9.02 Certain Provisions Regarding Increased Costs. Notwithstanding any other provision of this Agreement, if after the date of this Agreement any change in Applicable Law or in the interpretation or
administration thereof by any Governmental Authority charged with the interpretation or administration thereof (whether or not having the force of law) shall change the basis of taxation of payments to any Note Purchaser of the principal of or
interest on any Note or any fees, expenses or indemnities payable hereunder (other than changes in respect of taxes imposed on the overall net income of such Note Purchaser by the United States or the jurisdiction in which such holder has its
principal office or by any political subdivision or taxing authority therein), or shall impose, modify or deem applicable any reserve, special deposit or similar requirements against assets of, deposits with or for the account of or credit extended
by any Note Purchaser or shall impose on such Note Purchaser or the London 
  

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 interbank market any other condition affecting this Agreement or Notes purchased by such Note Purchaser and the result of
any of the foregoing shall be to increase the cost to such Note Purchaser of making or maintaining any Note or to reduce the amount of any payment received or receivable by such Note Purchaser hereunder or under any of the Notes (whether of
principal, interest, or otherwise), then the Issuer agrees to pay to such Note Purchaser in accordance with Section 9.02(c) such additional amount or amounts as may be required to compensate such Note Purchaser for such additional costs
incurred or reduction suffered. 
  
 (b) If any Note Purchaser
shall have determined that the adoption after the date hereof of any law, rule, regulation, agreement or guideline regarding capital adequacy, or any amendment or modification after the date hereof to or of any such law, rule, regulation, agreement
or guideline (whether such law, rule, regulation, agreement or guideline had been originally adopted before or after the date hereof) or any change after the date hereof in the interpretation or administration of any such law, rule, regulation,
agreement or guideline by any Governmental Authority charged with the interpretation or administration thereof, or compliance by such Note Purchaser with any request or directive regarding capital adequacy (whether or not having the force of law) of
any Governmental Authority has or would have the effect of reducing the rate of return on such Note Purchaser’s capital as a consequence of the Notes purchased pursuant hereto to a level below that which such Note Purchaser could have achieved
but for such applicability, adoption, change or compliance (taking into consideration such Note Purchaser’s policies with respect to capital adequacy), then from time to time the Issuer agrees to pay to such Note Purchaser such additional
amount or amounts as may be required to compensate such holder for any such reduction suffered. 
  
 (c) A certificate of any Note Purchaser setting forth in reasonable detail the amount or amounts necessary to compensate such Note Purchaser as specified
in subsection (a) or (b) of this Section 9.02 shall be delivered to the Issuer and shall be conclusive absent manifest error. The Issuer agrees to pay such Note Purchaser the amount shown as due on any such certificate within five
Business Days after its receipt of the same. 
  
 (d) Failure or
delay on the part of any Note Purchaser to demand compensation for any increased costs or reduction in amounts received or receivable or reduction in return on capital shall not constitute a waiver of such Note Purchaser’s right to demand such
compensation with respect to such period or any other period. The protection of this clause (d) shall be available to any such Note Purchaser regardless of any possible contention of the invalidity or inapplicability of the law, rule, regulation,
agreement, guideline or other change or condition that shall have occurred or been imposed. 
  
 (e) The provisions of this Section 9.02 shall remain operative and in full force and effect regardless of the occurrence of the expiration of the term of this Agreement, the consummation of the transactions
contemplated hereby, the repayment of any of the Notes, the invalidity or unenforceability of any term or provision of this Agreement, any Note or any other Note Document, or any investigation made by or on behalf of any Note Purchaser. 

 
 Section 9.03 Note Purchaser Expenses. If any Note Purchaser incurs
costs or expenses of the type specified or similar to those described in Section 9.02 or is funding any portion of its Notes through a credit agreement, line of credit or other loan arrangement 
  

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 (“Funding Source Agreement”) which contains provisions similar to those set forth in Section 9.02
and such Note Purchaser is required by the terms of such Funding Source Agreement to pay to one or more lenders under such Funding Source Agreement increased amounts similar to those payable under Section 9.02, then the Issuer shall promptly
pay to such Note Purchaser, such additional amount or amounts as may be necessary to compensate such Note Purchaser for the increased amounts payable under such Funding Source Agreement. 
  
 ARTICLE X. MISCELLANEOUS 
  
 Section 10.01 Amendments and Waivers, Etc. 
  
 (a) Requirements. This Agreement and the Notes may be amended, and the observance of any term hereof or of the Notes may be waived (either
retroactively or prospectively), with (and only with) the written consent of the Issuer and the Required Holders (or the Agent on behalf of the Required Holders consenting), except that no such amendment or waiver may, (A) without the written
consent of each Note Purchaser affected thereby, (i) subject to the provisions hereof relating to acceleration or rescission, extend the time of any payment of principal of, reduce the principal amount of, the rate on, or extend the time of payment
or method of computation of interest or any fee on, the Notes, (ii) reduce the percentage of the principal amount of the Notes the holders of which are required to consent to any such amendment or waiver, (iii) release all or substantially all of
the Collateral, (iv) modify or amend the indemnities set forth in Section 10.17 in any manner materially adverse to any Note Purchaser, (v) amend Section 8.12 or Article IX in any manner materially adverse to any Note Purchaser,
(vi) modify Section 2.09, if such modification would alter the pro rata treatment of payments required thereby, (vii) amend this Section 10.01 or impose any obligation on any Note Purchaser or make any change that adversely effects the
rights of any Note Purchaser disproportionately with the rights of any other Note Purchaser or (viii) amend Section 2.07 and (B) without the prior written consent of at least 66 2/3rd % of Note
Purchasers, (i) release any Obligor from its Obligations or limit its liability with regard thereto (except in connection with a Permitted Reorganization) or as pursuant to Section 7.08, (ii) further restrict the Persons included under the
definition of “Eligible Assignee” or amend Section 2.12 in any manner that would further restrict transfers of the Notes pursuant thereto, or (iii) amend, restate, supplement, waive or otherwise modify the Intercreditor and
Subordination Agreements in a manner that would adversely effect the rights of any Note Purchaser disproportionately with the rights of any other Note Purchaser; provided, however, that in the case of (A)(vii) and (B)(iii) above, the written
consent of each Note Purchaser disproportionately effected also shall be required. 
  
 (b) Binding Effect, Etc. Any amendment or waiver consented to as provided in this Article X applies equally to all Note Purchasers and the Agent and is binding upon them and upon each future Note
Purchaser and the Agent (including Transferees) and upon the Issuer without regard to whether any Note has been marked to indicate such amendment or waiver. No such amendment or waiver shall extend to or affect any obligation, covenant, agreement,
Default or Event of Default not expressly amended or waived or impair any right consequent thereon. No course of dealing between the Issuer and any Note Purchaser or the Agent nor any delay in exercising any rights under this Agreement, under any
Note or under any other Note Purchase Document shall operate as a waiver of any rights of any Note Purchaser or the Agent. As used herein, the term “this Agreement” and references thereto shall mean this Agreement as it may from time to
time be amended or supplemented. 
  

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 (c) Notes held by the Issuer, Etc. Solely for the purpose of determining whether the holders of
the requisite percentage of the aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver or consent to be given under this Agreement, the Notes or any other Note Purchase Document, or have directed the
taking of any action provided in this Agreement, in the Notes or in any other Note Purchase Document to be taken upon the direction of the holders of a specified percentage of the aggregate principal amount of Notes then outstanding, Notes directly
or indirectly owned by the Issuer or any of its Affiliates shall be deemed not to be outstanding. 
  
 (d) Replacement of Note Purchaser. The Issuer may replace any Note Purchaser that becomes a Non-Consenting Note Purchaser (as defined below in this
Section 10.01(d)), upon ten (10) Business Days’ prior written notice to the Agent and such Non-Consenting Note Purchaser, and such Non-Consenting Note Purchaser shall be obligated to transfer and assign pursuant to Section 2.12
all of its rights and obligations under this Agreement to a Replaced Note Purchaser (a “Replaced Note Purchaser”) for a purchase price equal to the outstanding principal amount of the Non-Consenting Note Purchaser’s principal
debt and such Non-Consenting Note Purchaser’s ratable share of all accrued but unpaid accrued interest and fees and other amounts payable hereunder, provided that (i) neither the Agent nor any Note Purchaser shall have any obligation to
the Issuer to find a Replaced Note Purchaser and (ii) in no event shall the replaced Non-Consenting Note Purchaser be required to pay or surrender to such Replaced Note Purchaser any of the fees paid to such replaced Non-Consenting Note Purchaser
prior to the effectiveness of such assignment. In the case of a Note Purchaser to which the Issuer becomes obligated to pay additional amounts prior to such Note Purchaser being replaced, the payment of such additional amounts shall be a condition
to the replacement of such Note Purchaser. In the event that (i) the Issuer or the Agent has requested the Note Purchasers to consent to a departure or waiver of any provisions of the Note Purchase Documents or to agree to any amendment thereto,
(ii) the consent, waiver or amendment in question requires the agreement of all Note Purchasers or all affected Note Purchasers in accordance with the terms of this Section 10.01 and (iii) at least 66 2/3rd % of Note Purchasers have agreed to such consent, waiver or amendment, then any Note Purchaser who does not agree to such consent, waiver or amendment shall be deemed a “Non-Consenting Note Purchaser”.

  
 Section 10.02 Notices, Etc. All notices and
communications provided for hereunder shall be in writing and sent (a) by telecopy if the sender on the same day sends a confirming copy of such notice by a recognized overnight delivery service (charges prepaid), or (b) by registered or certified
mail with return receipt requested (postage prepaid), (c) by a recognized overnight delivery service (with charges prepaid), or (d) in the case of periodic notices to the Note Purchasers as a group, by email (so long as the Agent receives a copy of
such notice so sent via email and by one of the other foregoing notice methods). Any such notice must be sent: 
  
 (a) if to a Note Purchaser or its nominee, to such Note Purchaser or nominee at the address specified for such communications in Schedule I, or at
such other address as a Note Purchaser (including any Transferee) or a nominee shall have specified to the Issuer and the Agent in writing, 
  

 91 

 (b) if to the Agent, to Tennenbaum Capital Partners, LLC, 2951 28th Street, Suite 1000, Santa Monica,
California 90405, Attention: General Counsel; or 
  
 (c) if to the
Issuer, to the attention of Chief Financial Officer, 7037 Old Madison Pike, Suite 400, Huntsville, AL 35806, or at such other address as the Issuer shall have specified to the Note Purchasers in writing. 
  
 (d) Notices under this Section 10.02 shall be deemed effective upon
the earlier of receipt thereof or 3 days from the date on which such notice was sent. 
  
 Section 10.03 No Waiver; Remedies. No failure on the part of any Note Purchaser or any Agent to exercise, and no delay in exercising, any right hereunder or under any Note shall operate as a waiver thereof; nor
shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
  
 Section 10.04 Costs and Expenses; Survival. 
  
 (a) The Issuer agrees to pay promptly (a) all the actual and documented
costs and expenses of negotiation, preparation and execution of the Note Purchase Documents and any consents, amendments, waivers or other modifications thereto (whether or not any such amendment, waiver or consents become effective); (b) all the
costs of furnishing all opinions by counsel for the Obligors (including any opinions requested by the Collateral Agent, the Agent or the Note Purchasers as to any legal matters arising hereunder) and of any Obligor’s performance of and
compliance with all agreements and conditions on its part to be performed or complied with under this Agreement and the other Note Purchase Documents including with respect to confirming compliance with environmental, insurance and solvency
requirements; (c) the reasonable and documented fees, expenses and disbursements of counsel to the lead Note Purchaser and the Agent (including allocated costs of internal counsel) in connection with the negotiation, preparation, execution and
administration of the Note Purchase Documents and any consents, amendments, waivers or other modifications thereto (whether or not any such amendment, waiver or consents become effective) and any other documents or matters requested by any Obligor;
(d) all the actual costs and reasonable and documented expenses of creating and perfecting Liens in favor of the Collateral Agent on behalf of the Note Purchasers pursuant to any Collateral Document, including filing and recording fees, expenses and
taxes, stamp or documentary taxes, search fees, title insurance premiums, and reasonable fees, expenses and disbursements of counsel to the Collateral Agent and of counsel providing any opinions that the Collateral Agent or the Note Purchasers may
request in respect of the Collateral Documents or the Liens created pursuant thereto; (e) all the actual costs and reasonable and documented expenses (including the reasonable fees, expenses and disbursements of any auditors, accountants or
appraisers and any environmental or other consultants, advisors and agents employed or retained by the Collateral Agent or the Note Purchasers or any of their counsel) of obtaining and reviewing any environmental audits or reports provided
hereunder; (f) the costs incurred by the Collateral Agent in connection with the custody or preservation of any of the 
  

 92 

 Collateral; (g) all costs and documented expenses, including reasonable and documented attorneys’ fees (including
allocated costs of internal counsel) and costs of settlement, incurred by the Collateral Agent and the Note Purchasers in enforcing any Obligations of or in collecting any payments due from any Obligor hereunder or under the other Note Purchase
Documents (including in connection with the sale of, collection from, or other realization upon any of the Collateral or the enforcement of the Guaranties) or in connection with any refinancing or restructuring of the credit arrangements provided
under this Agreement in the nature of a “work-out” or pursuant to any insolvency or bankruptcy proceedings; and (h) all costs and expenses incurred by the Note Purchasers in obtaining periodic appraisals and market valuations of the Notes
from time to time as required or otherwise desirable (as determined by the applicable Note Purchaser at its sole discretion) pursuant to any Funding Source Agreement or other Contractual Obligation of a Note Purchaser. The Issuer shall pay, and
shall save each Note Purchaser and the Agent harmless from, all claims in respect of reasonable and documented fees, costs or expenses if any, of brokers and finders (other than those retained by a Note Purchaser or the Agent). 
  
 (b) The obligations of the Issuer under this Section 10.04 shall
survive the payment or transfer of any Note, the enforcement, amendment or waiver of any provision of this Agreement, the Notes or any other Note Purchase Document, and the termination of this Agreement. 
  
 Section 10.05 Confidentiality. “Confidential
Information” means information, written or oral, delivered to a Note Purchaser or the Agent by or on behalf of any Obligor in connection with the transactions contemplated by or otherwise pursuant to this Agreement that is proprietary in
nature or was marked, labeled or otherwise adequately identified, including without limitation identified as such orally by a Senior Officer, when received by a Note Purchaser or the Agent as being confidential information of any Obligor,
provided that such term does not include information that (a) was publicly known or otherwise known to such Note Purchaser or the Agent prior to the time of such disclosure, (b) subsequently becomes publicly known through no act or omission
by such Note Purchaser or the Agent or any person acting on its behalf, (c) otherwise becomes known to such Note Purchaser or the Agent other than through disclosure by any Obligor or their employees, agents or affiliates, or (d) constitutes
financial statements delivered to such Note Purchaser or the Agent hereunder that are otherwise publicly available. Each Note Purchaser and the Agent shall maintain the confidentiality of Confidential Information, provided that such Note Purchaser
and the Agent may deliver or disclose Confidential Information to (i) its directors, officers, employees, agents, attorneys and affiliates (to the extent such disclosure is reasonably required for the administration of the investment represented by
such Note Purchaser’s Notes), (ii) its financial advisors and other professional advisors who agree to hold confidential the Confidential Information substantially in accordance with the terms of this Section 10.05, (iii) any other Note
Purchaser or the Agent, (iv) any Person to which such Note Purchaser sell or offer to sell such Note or any part thereof or any participation therein (if such Person has agreed in writing prior to its receipt of such Confidential Information to be
bound by the provisions of this Section 10.05), (v) any Person from which such Note Purchaser offers to purchase any security of the Issuer (if such Person has agreed in writing prior to its receipt of such Confidential Information to be
bound by the provisions of this Section 10.05), (vi) as required by any federal or state regulatory authority having jurisdiction over such Note Purchaser or the Agent, (vii) the National Association of Insurance Commissioners or any similar
organization, or any nationally recognized rating agency that 
  

 93 

 requires access to information about such Note Purchaser’s investment portfolio or (viii) any other Person to which
such delivery or disclosure may be necessary or appropriate (A) to effect compliance with any law, rule, regulation or order applicable to such Note Purchaser, (B) in response to any subpoena or other legal process, (C) in connection with any
litigation to which such Note Purchaser or the Agent is a party or (D) if an Event of Default has occurred and is continuing, to the extent such Note Purchaser or the Agent may reasonably determine such delivery and disclosure to be necessary or
appropriate in the enforcement or for the protection of the rights and remedies under the Notes, this Agreement or any other Note Purchase Document. Notwithstanding anything to the contrary set forth herein, in any other Note Purchase Document or in
any other written or oral understanding or agreement to which the parties hereto are parties or by which they are bound, the parties acknowledge and agree that (i) any obligations of confidentiality contained herein and therein do not apply and have
not applied from the commencement of discussions between the parties to the tax treatment and tax structure of the Notes (and any related transactions or arrangements), and (ii) each party (and each of its employees, representatives, or other
agents) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the Notes and all materials of any kind (including opinions or other tax analyses) that are provided to such party relating to such
tax treatment and tax structure, all within the meaning of U.S. Treasury Regulations Section 1.6011. Nothing contained in this provision shall prohibit any Note Purchaser from disclosing its own participation in the Transactions or other information
(except Confidential Information) about the Transactions after the Closing as may be used in good faith by such Note Purchasers for its marketing purposes in a manner consistent with customary industry practice. As to any Note Purchaser and to TCP,
this Section 10.05 supersedes in its entirety that certain Confidentiality Agreement by and between TCP and the Parent dated as of March 4, 2005. 
  
 Section 10.06 Severability. Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or
render unenforceable such provision in any other jurisdiction. 
  
 Section 10.07 Construction. Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant contained herein, so that compliance with any one covenant shall not
(absent such an express contrary provision) be deemed to excuse compliance with any other covenant. Where any provision herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be
applicable whether such action is taken directly or indirectly by such Person. 
  
 Section 10.08 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together shall constitute one instrument. Each counterpart may
consist of a number of copies hereof, each signed by less than all, but together signed by all, of the parties hereto. 
  
 Section 10.09 Governing Law. This Agreement shall be construed and enforced in accordance with, and the rights of the parties shall be governed by,
the law of the State of New York excluding choice-of-law principles of the law of such State that would require the application of the laws of a jurisdiction other than such State. 
  

 94 

 Section 10.10 Waiver of Jury Trial. EACH OF THE PARTIES TO THIS AGREEMENT HEREBY AGREES TO WAIVE
ITS RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY OF THE OTHER NOTE PURCHASE DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS FINANCING TRANSACTION
OR THE RELATIONSHIP THAT IS BEING ESTABLISHED HEREUNDER OR THEREUNDER. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED
ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH SHALL CONTINUE TO RELY ON THIS WAIVER IN THEIR RELATED FUTURE DEALINGS UNDER THE NOTE PURCHASE DOCUMENTS. EACH PARTY HERETO FURTHER WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THIS
WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A
MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.10 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE
OTHER NOTE PURCHASE DOCUMENTS OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE NOTES SOLD HEREUNDER. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT. 
  
 Section 10.11 Usury Savings Clause. Notwithstanding any other
provision herein, the aggregate interest rate charged with respect to any of the Obligations, including all charges or fees in connection therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful Rate. If
the rate of interest (determined without regard to the preceding sentence) under the Notes at any time exceeds the Highest Lawful Rate, the outstanding amount of the Notes purchased or deemed purchased hereunder shall bear interest at the Highest
Lawful Rate until the total amount of interest due hereunder equals the amount of interest which would have been due hereunder if the stated rates of interest set forth in the Note had at all times been in effect. In addition, if and when the Notes
purchased or deemed purchased hereunder are repaid in full the total interest due hereunder (taking into account the increase provided for above) is less than the total amount of interest which would have been due hereunder if the stated rates of
interest set forth in the Notes had at all times been in effect, then to the extent permitted by law, the Parent shall pay to the Note Purchasers an amount equal to the difference between the amount of interest paid and the amount of interest which
would have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the 
  

 95 

 foregoing, it is the intention of the Note Purchasers and the Parent to conform strictly to any applicable usury laws.
Accordingly, if any Note Purchaser contracts for, charges, or receives any consideration which constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled automatically and, if previously paid, shall at such
Note Purchaser’s option be applied to the outstanding amount of the Notes purchased or deemed purchased hereunder or be refunded to the Parent. 
  
 Section 10.12 Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, each Note Purchaser and its Affiliates is
hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time
owing by any such Note Purchaser or its Affiliates to or for the credit or the account of any Obligor against any and all of the Obligations now or hereafter existing, whether or not any Note Purchaser shall have made any demand under this Agreement
or the other Note Purchase Documents and although such Obligations may be unmatured. The rights of the Note Purchasers and their Affiliates under this Section 10.12 are in addition to the other rights and remedies (including other rights of
set-off) which such Persons may have. 
  
 Section 10.13
Marshalling; Payments Set Aside. No Note Purchaser shall be under any obligation to marshal any assets in favor of any Obligor or any other Person or against or in payment of any or all of the Obligations. To the extent that any Obligor makes
a payment or payments to the Agent, the Collateral Agent or any Note Purchaser or the Agent, Collateral Agent or any Note Purchaser enforces any security interests or exercise their rights of setoff, and such payment or payments or the proceeds of
such enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or
federal law, common law or any equitable cause, then, to the extent of such recovery, the obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies therefor or related thereto, shall be revived and continued
in full force and effect as if such payment or payments had not been made or such enforcement or setoff had not occurred. 
  
 Section 10.14 Limitation of Liability. THE OBLIGORS AGREE THAT NO INDEMNIFIED PERSON SHALL HAVE ANY LIABILITY (WHETHER DIRECT OR INDIRECT, IN
CONTRACT, TORT OR OTHERWISE) TO ANY NOTE PURCHASER OR ANY OF THEIR RESPECTIVE SUBSIDIARIES, EQUITY HOLDERS OR CREDITORS FOR OR IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED HEREBY AND IN THE OTHER NOTE PURCHASE DOCUMENTS, EXCEPT TO THE EXTENT
SUCH LIABILITY IS FOUND IN A FINAL JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED PRIMARILY FROM SUCH INDEMNIFIED PERSON’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. IN NO EVENT, HOWEVER, SHALL ANY INDEMNIFIED PERSON BE LIABLE ON
ANY THEORY OF LIABILITY FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES AND EACH OF THE OBLIGORS HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE UPON ANY SUCH CLAIM FOR ANY SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR
SUSPECTED TO EXIST IN ITS FAVOR. 
  

 96 

 Section 10.15 Submission to Jurisdiction; Waivers. Each of the Obligors hereby irrevocably and
unconditionally: 
  
 (a) submits for itself and its Property in
any legal action or proceeding relating to this Agreement and the other Note Purchase Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the co-exclusive general jurisdiction of the courts of
the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof or the United States District Court for the Central District of California and of any California State
Court sitting in Los Angeles, California; 
  
 (b) consents that
any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient
court and agrees not to plead or claim the same; 
  
 (c) agrees
that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to it at its address set forth in Section 10.02
or at such other address of which the Note Purchasers and the Agent have been notified pursuant thereto; and 
  
 (d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in
any other jurisdiction. 
  
 Section 10.16 Successors and
Assigns. All covenants and other agreements contained in this Agreement by or on behalf of any of the parties hereto bind and inure to the benefit of their respective successors and assigns (including, without limitation, any Transferee) whether
so expressed or not; provided, however, that neither the Parent nor its Subsidiaries may assign its rights or obligations under the Note Purchase Documents. 
  
 Section 10.17 Indemnification. 
  
 (a) The Issuer and the other Obligors shall indemnify and hold harmless each Note Purchaser, the Collateral Agent, the
Agent, each person who controls a Note Purchaser within the meaning of the Securities Act or the Exchange Act, in each case, as amended, and each of their respective directors, officers, employees, principals, members, agents, advisors and partners
(any and all of whom are referred to as the “Indemnified Party”) from and against any and all losses, claims, damages, and liabilities, whether joint or several (including all legal fees or other expenses reasonably incurred by any
Indemnified Party in connection with the preparation for or defense of any pending or threatened third party claim, action or proceeding, whether or not resulting in any liability), to which such Indemnified Party may become subject, under any
Applicable Law or otherwise, caused by or arising out of, or allegedly caused by or arising out of, (i) this Agreement, any other Note Purchase Document, any related agreement or any transaction contemplated hereby or thereby (including, without
limitation, any failure to purchase the Notes other than by reason of a breach of this Agreement by the Indemnified Party), (ii) any enforcement of any of the Note Purchase Documents (including any sale of, collection from, or other realization upon
any of the Collateral or the enforcement of the Guaranties)), or 
  

 97 

 (iii) any Environmental Action relating to or arising from, directly or indirectly, any past or present activity,
operation, land ownership, or practice of the Parent or any of its Subsidiaries. 
  
 (b) Promptly after receipt by an Indemnified Party of notice of any claim, action or proceeding with respect to which an Indemnified Party is entitled to indemnity hereunder, such Indemnified Party shall notify the
Parent of such claim or the commencement of such action or proceeding, provided that the failure of an Indemnified Party to give notice as provided herein shall not relieve the Issuer or the other Obligors of their obligations under this Section
10.17 with respect to such Indemnified Party, except to the extent that such Obligor is actually prejudiced by such failure. The Parent shall assume the defense of such claim, action or proceeding and shall employ counsel satisfactory to the
Indemnified Party and shall pay the fees and expenses of such counsel. Notwithstanding the preceding sentence, the Indemnified Party shall be entitled, at the expense of the Issuer and the other Obligors, to employ counsel separate from counsel for
the Parent and for any other party in such action if the Indemnified Party reasonably determines upon advice of counsel that a conflict of interest or other reasonable basis exists which makes representation by counsel chosen by the Parent not
advisable. NO OBLIGOR SHALL BE REQUIRED TO INDEMNIFY ANY INDEMNIFIED PARTY FOR ANY LOSSES, CLAIMS, DAMAGES AND LIABILITIES TO THE EXTENT ANY SUCH LOSSES, CLAIMS, DAMAGES OR LIABILITIES ARE A RESULT OF SUCH INDEMNIFIED PARTY’S GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT AS FOUND IN A FINAL, NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION. 
  
 (c) THE INDEMNIFICATION PROVISIONS IN THIS SECTION 10.17 SHALL BE ENFORCEABLE REGARDLESS OF WHETHER THE LIABILITY IS BASED UPON PAST, PRESENT OR
FUTURE ACTS, CLAIMS OR LAWS (INCLUDING ANY PAST, PRESENT OR FUTURE BULK SALES LAW, ENVIRONMENTAL LAW, FRAUDULENT TRANSFER ACT, OCCUPATIONAL SAFETY AND HEALTH LAW OR PRODUCTS LIABILITY, SECURITIES OR OTHER LAW) AND REGARDLESS OF WHETHER ANY PERSON
(INCLUDING THE PERSON FROM WHOM INDEMNIFICATION IS SOUGHT) ALLEGES OR PROVES THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION OR THE SOLE OR CONCURRENT STRICT LIABILITY IMPOSED UPON THE PERSON
SEEKING INDEMNIFICATION. 
  
 (d) To the extent that the
undertakings to defend, indemnify, pay and hold harmless set forth in this Section 10.17 may be unenforceable in whole or in part because they are violative of any Applicable Law or public policy, the Issuer and the other Obligors shall
contribute the maximum portion that it is permitted to pay and satisfy under Applicable Law to the payment and satisfaction of all indemnified liabilities incurred by Indemnified Parties or any of them. 
  
 Section 10.18 Survival of Representations and Warranties; Entire
Agreement. All representations and warranties contained herein and in the other Note Documents shall survive the execution and delivery of this Agreement, the Notes and the other Note Documents, the purchase or transfer by a Note Purchaser of
any Note or portion thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent Note Purchaser (including any Transferee), regardless of any investigation made at any time by or on behalf of 
  

 98 

 any Purchaser (including any Transferee). All statements contained in any certificate or other instrument delivered by or
on behalf of the Company pursuant to this Agreement or any other Note Document shall be deemed representations and warranties of the Company under this Agreement. Subject to the preceding sentence, this Agreement, the Notes and the other Note
Documents embody the entire agreement and understanding between the Note Purchasers and the Company and supersede all prior agreements and understandings relating to the subject matter hereof. 
  
 Section 10.19 Authorization for Intercreditor and Subordination
Agreements. Each of the Note Purchasers party hereto authorizes and directs the Agents to execute on their behalf the Intercreditor and Subordination Agreements and agrees to be bound by the terms thereof. 
  
 [signature pages follow] 
  

 99 

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

			
	TENNENBAUM CAPITAL PARTNERS, LLC, as
Agent
		
	By:	 	TENNENBAUM & CO., LLC
	Its:	 	Managing Member
	
	 TCP AGENCY SERVICES, LLC,
 as
Collateral Agent

		
	By:	 	TENNENBAUM CAPITAL PARTNERS, LLC
	Its:	 	Managing Member
		
	By:	 	TENNENBAUM & CO., LLC
	Its:	 	Managing Member
	
	 SPECIAL VALUE BOND FUND II, LLC,
 as Note Purchaser

		
	By:	 	SVIM/MSM II, LLC
	Its:	 	Managing Member
		
	By:	 	TENNENBAUM & CO., LLC
	Its:	 	Managing Member
	
	 SPECIAL VALUE ABSOLUTE RETURN FUND, LLC,
 as Note Purchaser

		
	By:	 	SVAR/MM, LLC
	Its:	 	Managing Member
		
	By:	 	TENNENBAUM CAPITAL PARTNERS, LLC
	Its:	 	Managing Member
		
	By:	 	TENNENBAUM & CO., LLC
	Its:	 	Managing Member
	
	Each of the above by:
	
	 /s/ Howard M. Levkowitz

	Name:	 	 Howard M. Levkowitz

	Title:	 	 Managing Partner

			
	UNITED INSURANCE COMPANY OF AMERICA,
as Note purchaser
		
	By	 	 /s/ Eric J. Draut

	Name:	 	Eric J. Draut
	Title	 	Assistant Treasurer

  

 3 

			
	 MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, as Note Purchaser

		
	By:	 	 Babson Capital Management LLC
 as Investment Adviser

		
	By:	 	 /s/ Michael L. Klofas

	 Name:
	 	 Michael L. Klofas

	 Title:
	 	 Managing Director

  

			
	 MASSMUTUAL PARTICIPATION INVESTORS, as Note Purchaser

		
	By:	 	 /s/ Michael L. Klofas

	 Name:
	 	 Michael L. Klofas

	 Title:
	 	 Vice President

  

			
	
	The foregoing is executed on behalf of MassMutual Participation Investors, organized under a Declaration of Trust, dated April 7, 1988, as amended from time to time. The obligations
of such Trust are not binding upon, nor shall resort be had to the property of, any of the trustees, shareholders, officers, employees or agents of such Trust individually, but the Trust’s assets and property only shall be
bound.
	 

  

			
	 MASSMUTUAL CORPORATE INVESTORS, as Note Purchaser

		
	By:	 	 /s/ Michael L. Klofas

	 Name:
	 	 Michael L. Klofas

	 Title:
	 	 Vice President

  

			
	
	The foregoing is executed on behalf of MassMutual Corporate Investors, organized under a Declaration of Trust, dated September 13, 1985, as amended from time to time. The obligations
of such Trust are not personally binding upon, nor shall resort be had to the property of, any of the trustees, shareholders, officers, employees or agents of such Trust but the Trust’s assets and property only shall be bound.
	 

  

			
	 TOWER SQUARE CAPITAL PARTNERS, L.P., as Note Purchaser

		
	By:	 	 Babson Capital Management LLC
as Investment Manager

		
	By:	 	 /s/ Michael L. Klofas

	 Name:
	 	 Michael L. Klofas

	 Title:
	 	 Managing Director

			
	 INTERSTATE FIBERNET INC., as Issuer

		
	By:	 	 /s/ Richard E. Fish

	Name:	 	Richard E. Fish
	Title:	 	Chief Financial Officer
	
	ITC^DELTACOM, INC., as Guarantor
		
	By:	 	 /s/ Richard E. Fish

	Name:	 	Richard E. Fish
	Title:	 	Chief Financial Officer
	
	 ITC^DELTACOM COMMUNICATIONS, INC.,
 as
Guarantor

		
	By:	 	 /s/ Richard E. Fish

	Name:	 	Richard E. Fish
	Title:	 	Chief Financial Officer
	
	 DELTACOM INFORMATION SYSTEMS, INC.,
 as
Guarantor

		
	By:	 	 /s/ Richard E. Fish

	Name:	 	Richard E. Fish
	Title:	 	Chief Financial Officer

  
  

			
	BTI TELECOM CORP., as Guarantor
		
	By:	 	 /s/ Richard E. Fish

	Name:	 	Richard E. Fish
	Title:	 	Chief Financial Officer
	
	BUSINESS TELECOM, INC., as Guarantor
		
	By:	 	 /s/ Richard E. Fish

	Name:	 	Richard E. Fish
	Title:	 	Chief Financial Officer
	
	 BUSINESS TELECOM OF VIRGINIA, INC.,
 as
Guarantor

		
	By:	 	 /s/ Richard E. Fish

	Name:	 	Richard E. Fish
	Title:	 	Chief Financial Officer

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