Document:

Exhibit 10.6

 

RF NOTE

 

	
  $                    

  	
   

  	
  New York, New York

  
	
   

  	
   

  	
                   ,
  2005

  

 

FOR VALUE
RECEIVED, FAIRPOINT COMMUNICATIONS, INC., a Delaware corporation (the “Borrower”),
hereby promises to pay to the order of (the “Lender”), in lawful money
of the United States of America in immediately available funds, at the Payment
Office (as defined in the Agreement referred to below) initially located at 60
Wall Street, New York, New York 10005, on the RF Maturity Date (as defined in
the Agreement) the principal sum of                
($                 )
or, if less, the then unpaid principal amount of all RF Loans (as defined in
the Agreement) made by the Lender pursuant to the Agreement.

 

The Borrower
promises also to pay interest on the unpaid principal amount hereof in like
money at said office from the date hereof until paid at the rates and at the
times provided in Section 1.08 of the Agreement.

 

This Note is
one of the RF Notes referred to in the Credit Agreement, dated as of February
8, 2005, among the Borrower, the lenders from time to time party thereto
(including the Lender), Bank of America, N.A., as Syndication Agent, CoBank,
ACB and General Electric Capital Corporation, as Co-Documentation Agents, and
Deutsche Bank Trust Company Americas, as Administrative Agent (as amended,
restated, modified and/or supplemented from time to time, the “Agreement”),
and is entitled to the benefits thereof and of the other Credit Documents (as
defined in the Agreement).  This Note is
secured pursuant to the Pledge Agreement (as defined in the Agreement).  As provided in the Agreement, this Note is
subject to voluntary prepayment and mandatory repayment prior to the RF
Maturity Date, in whole or in part.

 

In case an
Event of Default (as defined in the Agreement) shall occur and be continuing,
the principal of and accrued interest on this Note may be declared to be due
and payable in the manner and with the effect provided in the Agreement.

 

The Borrower
hereby waives presentment, demand, protest or notice of any kind in connection
with this Note.

 

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE
LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF
LAWS.

 

 

	
   

  	
  FAIRPOINT COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit
10.7

 

B TERM NOTE

 

	
  $                 

  	
   

  	
  New York, New York

  
	
   

  	
   

  	
                       , 2005

  

 

FOR VALUE RECEIVED, FAIRPOINT COMMUNICATIONS, INC.,
a Delaware corporation (the “Borrower”), hereby promises to pay to the
order of (the “Lender”), in lawful money of the United States of America
in immediately available funds, at the Payment Office (as defined in the
Agreement referred to below) initially located at 60 Wall Street, New York, New
York 10005, on the Term Loan Maturity Date (as defined in the Agreement) the
principal sum of                  
($                   ) or, if less, the then unpaid principal amount of all B Term
Loans (as defined in the Agreement) made by the Lender pursuant to the
Agreement.

 

The Borrower also promises to pay interest on the
unpaid principal amount hereof in like money at said office from the date
hereof until paid at the rates and at the times provided in Section 1.08
of the Agreement.

 

This Note is one of the B Term Notes referred to in
the Credit Agreement, dated as of February 8, 2005, among the Borrower,
the lenders from time to time party thereto (including the Lender), Bank of
America, N.A., as Syndication Agent, CoBank, ACB and General Electric Capital
Corporation, as Co-Documentation Agents, and Deutsche Bank Trust Company
Americas, as Administrative Agent (as amended, restated, modified and/or
supplemented from time to time, the “Agreement”), and is entitled to the
benefits thereof and of the other Credit Documents (as defined in the
Agreement).  This Note is secured
pursuant to the Pledge Agreement (as defined in the Agreement).  As provided in the Agreement, this Note is
subject to voluntary prepayment and mandatory repayment prior to the Term Loan
Maturity Date, in whole or in part.

 

In case an Event of Default (as defined in the
Agreement) shall occur and be continuing, the principal of and accrued interest
on this Note may be declared to be due and payable in the manner and with the
effect provided in the Agreement.

 

The Borrower hereby waives presentment, demand,
protest or notice of any kind in connection with this Note.

 

THIS NOTE SHALL BE CONSTRUED IN ACCORDANCE WITH AND BE GOVERNED BY THE
LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICT OF
LAWS.

 

 

	
   

  	
  FAIRPOINT COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:Exhibit 10.9

 

NOMINATING AGREEMENT

 

THIS NOMINATING AGREEMENT
(this “Agreement”), dated as of February 8, 2005, is entered into
by and among FairPoint Communications, Inc., a Delaware corporation (the “Company”),
Kelso Investment Associates V, L.P., a Delaware limited partnership (“KIA V”),
Kelso Equity Partners V, L.P., a Delaware limited partnership (“KEP V”
and together with KIA V, “Kelso”) and Thomas H. Lee Equity Fund IV,
L.P., a Delaware limited partnership (“THL”).  Kelso and THL, together with the affiliates of
THL listed on Schedule A attached hereto, are
referred to herein collectively as the “Stockholders.”

 

WHEREAS, as of the date
hereof and immediately prior to the consummation of the Company’s initial
public offering of its common stock, par value $.01 per share (the “Common
Stock”), the Stockholders own in the aggregate 7,515,321 shares (collectively,
the “Shares”) of Common Stock; and

 

WHEREAS, Kelso, THL and
the Company wish to make certain agreements with respect to the nomination of
candidates for election to the board of directors of the Company, upon the
terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants and considerations
herein set forth, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby agree as follows:

 

1.                                       Board
of Directors.  The size of the Board
of Directors of the Company (the “Board”) shall be established in
accordance with the Certificate of Incorporation and By-Laws of the Company.  The members of the Board shall be nominated
and elected in accordance with the Certificate of Incorporation and By-Laws of
the Company, and the provisions of this Agreement.  “Certificate of Incorporation” shall
mean the Eighth Amended and Restated Certificate of Incorporation of the
Company, as filed with the Secretary of State of the State of Delaware and
effective as of the date hereof, as may be amended from time to time.  “By-Laws” shall mean the Amended and
Restated By-Laws of the Company, effective as of the date hereof, as may be
amended from time to time.

 

2.                                       Staggered
Board.  The Certificate of
Incorporation and By-Laws of the Company shall provide that the Board shall be
divided into three classes, as nearly equal in number as possible, as follows:
(A) one class initially consisting of two directors (“Class I”), the
initial term of which shall expire at the first annual meeting of the
stockholders to be held after the date hereof; (B) a second class initially
consisting of two directors (“Class II”), the initial term of which
shall expire at the second annual meeting of the stockholders to be held after
the date hereof and (C) a third class initially consisting of two directors (“Class
III”), the initial term of which shall expire at the third annual meeting
of the stockholders to be held after the date hereof, with each class to hold
office until its successors are elected and qualified.  At each annual meeting of the stockholders of
the Company, the successors of the members of the class of directors whose term
expires at that meeting shall be elected to hold office for a term expiring at
the third succeeding annual meeting of stockholders.  On the date hereof, the Board shall

 

 

consist of: (i) Eugene B. Johnson and Patricia Garrison-Corbin
in Class I, (ii) Frank K. Bynum and David L. Hauser in Class II and (iii) Kent
R. Weldon and Claude C. Lilly in Class III.

 

3.                                       Designees.
 Upon expiration of the respective terms
of the initial Board members set forth in Section 2 above, and subject to
the provisions of Section 4 hereof, Kelso and THL shall have the right to
designate individuals for nomination for election to the Board as set forth
below and the Company shall, acting through its Nominating Committee, cause
such individuals to be nominated for election to the Board as set forth below;
provided that the Nominating Committee’s obligations under this Agreement are
subject to the requirements of their fiduciary duties as directors and the Delaware
General Corporation Law.

 

(a)                                  For
so long as the Stockholders (together with any of their respective successors
and permitted assigns) own, in the aggregate, at least forty percent (40%) of
the Shares and Kelso (together with its successors and permitted assigns) owns
at least one (1) Share, (i) Kelso shall be entitled to designate one person for
nomination for election to the Board in Class II and (ii) THL shall be entitled
to designate one person for nomination for election to the Board in Class III; provided,
however, that if Kelso no longer owns any Shares, but THL (together with
its successors and permitted assigns) owns at least
forty percent (40%) of the Shares, THL shall be entitled to designate one
person for nomination for election to the Board in Class II and one person for
nomination for election to the Board in Class III; or

 

(b)                                 For
so long as the Stockholders (together with any of their respective successors
and permitted assigns) own, in the aggregate, less than forty percent (40%),
but at least twenty percent (20%), of the Shares, THL shall be entitled to
designate one person for nomination for election to the Board in Class III.

 

4.                                       Mechanics
of Designation.

 

(a)                                  In
order to nominate an individual for election to the Board, Kelso or THL, as
applicable, must submit to the Company a prior written notice at least ninety
(90) days prior to the date of the next scheduled annual meeting of the Company’s
stockholders in accordance with the notice provisions set forth in Section 11
hereof, which notice shall include (i) the name of the designee, (ii) a current
resume and curriculum vitae of the designee, (iii) a statement describing the designee’s
qualifications and (iv) contact information for personal and professional
references.  At least one hundred and
twenty (120) days prior to the date of such annual meeting of the Company’s
stockholders, the Company shall provide Kelso and THL with written notice of
the expected date of such meeting in accordance with the notice provisions set
forth in Section 11 hereof.

 

(b)                                 At
each meeting of the Company’s stockholders at which the directors of the
Company are to be elected, the Company agrees to recommend that the
stockholders elect to the Board each designee of Kelso and/or THL nominated for
election at such meeting in accordance with the provisions of Section 3
above.

 

2

 

5.                                       Vacancies.

 

(a)                                  At
any time at which a vacancy shall be created on the Board in any class as a
result of the death, disability, retirement, resignation, removal or otherwise
of a designee of Kelso and Kelso maintains the right to designate a person for
nomination for election to the Board, as specified in Section 3 above,
Kelso shall have the right to designate for appointment by the remaining
directors of the Company under the Certificate of Incorporation an individual
to fill such vacancy and to serve as a director on the Board in such class.

 

(b)                                 At
any time at which a vacancy shall be created on the Board in any class as a
result of the death, disability, retirement, resignation, removal or otherwise
of a designee of THL and THL maintains the right to designate a person or
persons for nomination for election to the Board, as specified in Section 3
above, THL shall have the right to designate for appointment by the remaining directors
of the Company under the Certificate of Incorporation an individual to fill
such vacancy and to serve as a director on the Board in such class.   In addition, in the event a vacancy of a
Kelso designee occurs at a time when Kelso no longer owns any Shares, but THL
owns at least forty percent (40%) of the Shares, THL shall be entitled to
designate an individual to fill such vacancy.

 

(c)                                  In
connection with the foregoing, THL or Kelso, as applicable, must submit to the
Company written notice of such designee or designees in accordance with the
notice provisions set forth in Section 11 hereof, which notice shall
include (i) the name of the designee, (ii) a current resume and curriculum
vitae of the designee, (iii) a statement describing the designee’s qualifications
and (iv) contact information for personal and professional references.  The Company agrees to take such actions as
will result in the appointment to the Board as soon as practicable of any
individual so designated by THL or Kelso, as applicable.

 

6.                                       Modification,
Amendment, Waiver.  No modification,
amendment or waiver of any provision of this Agreement shall be effective
unless approved in writing by the Company, THL and Kelso; provided, however,
that Kelso’s consent will not be required if Kelso no longer owns any Shares.  The failure of any party at any time to
enforce any of the provisions of this Agreement shall in no way be construed as
a waiver of such provisions and shall not affect the rights of the party
thereafter to enforce the provisions of this Agreement in accordance with its
terms.

 

7.                                       Invalid
or Unenforceable Provisions. 
Whenever possible, each provision of this Agreement will be interpreted
in such manner as to be effective and valid under applicable law, but if any
term or provision of this Agreement is held to be invalid, illegal or
unenforceable in any respect under any applicable law or rule in any
jurisdiction, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect and this Agreement will be
reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.  The parties further agree that any court of
competent jurisdiction is expressly authorized to modify any such unenforceable
provision of this Agreement in lieu of severing such unenforceable provision
from this Agreement in its entirety, whether by rewriting the offending
provision, deleting any or all of the offending provision, adding additional
language to this Agreement, or by making such other modifications as it deems
warranted to carry out the intent and agreement of the parties as

 

3

 

embodied herein to the maximum extent permitted by
law.  The parties expressly agree that
this Agreement as so modified by a court of competent jurisdiction shall be
binding upon and enforceable against each of them.

 

8.                                       Entire
Agreement. Except as otherwise expressly set forth herein, this document
embodies the complete agreement and understanding among the parties hereto with
respect to the subject matter hereof and supersedes and preempts any prior
understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way.

 

9.                                       Binding
Effect; Assignment.  All of the terms
of this Agreement shall inure to the benefit of and shall be binding upon the
Company, THL and Kelso and their respective successors and permitted assigns; provided,
however, that this Agreement may not be assigned except in accordance
with the following sentence.  No party
hereto shall assign its rights, or delegate its duties, under this Agreement
without the prior written consent of all of the other parties hereto; provided,
however, that (a) THL and Kelso may assign their respective rights
hereunder to their respective affiliates without consent and (b) Kelso’s
consent will not be required if Kelso no longer owns any Shares.

 

10.                                 Remedies.  The parties hereto will be entitled to
enforce their rights under this Agreement specifically (without posting a bond
or other security), to recover damages by reason of any material breach of any
provision of this Agreement and to exercise all other rights existing in their
favor.  The parties hereto agree and
acknowledge that money damages may not be an adequate remedy for any breach of
the provisions of this Agreement and that any party may in its sole discretion
apply to any court of law or equity of competent jurisdiction for specific
performance and/or injunctive relief in order to enforce or prevent any
violation of the provisions of this Agreement. 
In the event of any dispute involving the terms of this Agreement, the
prevailing party shall be entitled to collect reasonable fees and expenses
incurred by the prevailing party in connection with such dispute from the other
parties to such dispute.

 

11.                                 Notices.  Any notice or other communication in
connection with this Agreement or the Shares shall be deemed to be delivered
and received if in writing (or in the form of a telex or telecopy) addressed as
provided below (a) when actually delivered, in person, (b) if telexed or
telecopied to said address, when electronically confirmed, (c) when delivered
if delivered by overnight courier or (d) in the case of delivery by mail, five
(5) business days shall have elapsed after the same shall have been deposited
in the United States mails, postage prepaid and registered or certified:

 

If to the Company, to:

 

FairPoint Communications,
Inc.

521 East Morehead Street

Suite 250

Charlotte, North Carolina
28202

Attention: 
Shirley J. Linn, Esq.

Facsimile: 
(704) 344-1594

 

4

 

with a copy to:

 

Paul, Hastings, Janofsky & Walker LLP

75 East 55th Street

New York, New York  10022

Attention: Jeffrey J. Pellegrino, Esq.

 

If to Kelso, to:

 

Kelso & Company

320 Park Avenue, 24th Floor

New York, New York 10022

Attention: 
James J. Connors, II, Esq.

Facsimile: 
(212) 223-2379

 

If to THL, to:

 

Thomas H. Lee Partners, L.P.

100 Federal Street

35th Floor

Boston, Massachusetts 02110

Attention: 
Anthony J. DiNovi

Kent R. Weldon

Facsimile: 
(617) 227-3514

 

12.                                 Term.  The term of this Agreement shall terminate
upon the earlier to occur of: (i) the mutual consent in writing of all of the
parties hereto, provided that Kelso’s consent will not be required if Kelso no
longer owns any Shares or (ii) the date on which the Stockholders (together
with any of their respective successors and permitted assigns) own, in the
aggregate, less than twenty percent (20%) of the Shares.

 

13.                                 Governing
Law; Submission to Jurisdiction.  All
questions concerning the construction, validity and interpretation of this Agreement
will be governed by the internal laws of the State of Delaware, without giving
effect to principles of conflicts of law. The parties hereby irrevocably and
unconditionally consent to submit to the exclusive jurisdiction of the courts
of the State of Delaware or the United States of America located in the State
of Delaware for any actions, suits or proceedings arising out of or relating to
this Agreement and the transactions contemplated hereby (and the parties agree
not to commence any action, suit or proceeding relating hereto except in such
courts), and further agree that service of any process, summons, notice or
documents by United States registered mail to a party in accordance with Section 11
hereof shall be effective service of process for any action, suit or proceeding
brought against such party in any such court and, absent any statute, rule or
order to the contrary, that each party shall have thirty (30) days from actual
receipt of any complaint to answer or otherwise plead with respect
thereto.  The parties hereby irrevocably
and unconditionally waive any objection to the laying of venue of any action,
suit or proceeding arising out of this Agreement or the transactions
contemplated hereby in the courts of the State of Delaware or the United States
of America located in the State of Delaware, and hereby further irrevocably and
unconditionally

 

5

 

waive and agree not to plead or claim in any such
court that any such action, suit or proceeding brought in any such court has
been brought in an inconvenient forum.

 

14.                                 Descriptive
Headings.  The descriptive headings
of this Agreement are inserted for convenience only and do not constitute a
part of this Agreement.

 

15.                                 Counterparts.  This Agreement may be executed in separate
counterparts each of which will be an original and all of which taken together
will constitute one and the same agreement.

 

 

(Signature
Pages Follow)

 

6

 

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement on the day and year first above
written.

 

 

	
   

  	
  COMPANY:

  
	
   

  	
   

  
	
   

  	
  FAIRPOINT
  COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Shirley J. Linn

  
	
   

  	
   

  	
  Name:
  Shirley J. Linn

  
	
   

  	
   

  	
  Title:
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KELSO:

  
	
   

  	
   

  
	
   

  	
  KELSO INVESTMENT ASSOCIATES V, L.P.

  
	
   

  	
   

  
	
   

  	
  By: Kelso Partners V,
  L.P.,

  
	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  George E. Matelich

  
	
   

  	
   

  	
  Name:
  George E. Matelich

  
	
   

  	
   

  	
  Title:
  General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KELSO EQUITY PARTNERS V,
  L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  George E. Matelich

  
	
   

  	
   

  	
  Name:
  George E. Matelich

  
	
   

  	
   

  	
  Title:
  General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THL:

  
	
   

  	
   

  
	
   

  	
  THOMAS H. LEE EQUITY FUND
  IV, L.P.

  
	
   

  	
   

  
	
   

  	
  By: THL Equity Advisors
  IV, LLC,

  
	
   

  	
  its general partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Thomas H. Lee

  
	
   

  	
   

  	
  Name:
  Thomas H. Lee

  
	
   

  	
   

  	
  Title:

  

 

 

[Nominating Agreement]

 

 

Schedule A

THL Related Parties

 

Thomas H. Lee Foreign Fund
IV, L.P.

Thomas H. Lee Foreign Fund
IV-B, L.P.

1987 Thomas H. Lee Nominee
Trust

David V. Harkins

The Harkins 1995 Gift Trust

Scott A. Schoen

C. Hunter Boll

Scott M. Sperling

Anthony J. DiNovi

Thomas M. Hagerty

Warren C. Smith, Jr.

Seth W. Lawry

Kent R. Weldon

Terrence M. Mullen

Todd M. Abbrecht

Charles A. Brizius

Scott Jaeckel

Soren Oberg

Thomas R. Shepherd

Joseph J. Incandela

Wendy L. Malser

Andrew D. Flaster

Robert Schiff Lee 1988
Irrevocable Trust

Stephen Zachary Lee

Charles W. Robins as
Custodian for Jesse Lee

Charles W. Robins as
Custodian for Nathan Lee

Charles W. Robins

James Westra

Thomas H. Lee Charitable
Investment L.P.

THL-CCI Investors Limited
Partnership

Putnam Investment Holdings, LLC

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