Document:

<PAGE>   1
                                                               EXECUTION VERSION

                           E.SPIRE COMMUNICATIONS,INC.
                           E.SPIRE FINANCE CORPORATION

                              FORBEARANCE AGREEMENT
                               TO CREDIT AGREEMENT

            THIS FORBEARANCE AGREEMENT TO CREDIT AGREEMENT (this "AGREEMENT") is
dated as of July 10, 2000 and entered into by and among e.spire Communications,
Inc., a Delaware corporation ("COMPANY"), e.spire Finance Corporation, a
Delaware corporation ("FINANCE SUB"; Finance Sub and the Company, collectively
referred to as "BORROWERS"), the financial institutions listed on the signature
pages hereof ("LENDERS"), Goldman Sachs Credit Partners L.P., as sole Lead
Arranger and Syndication Agent, The Bank of New York, as Administrative Agent
for Lenders (in such capacity, "ADMINISTRATIVE AGENT"), First Union National
Bank, as Documentation Agent, and Newcourt Commercial Finance Corporation, as
Collateral Agent, and, for purposes of Section 3 hereof, the Subsidiaries of
Finance Sub listed on the signature pages hereof ("SUBSIDIARY GUARANTORS") and
is made with reference to that certain Credit Agreement, dated as of August 11,
1999 (as amended by the First Amendment dated November 24, 1999, the "CREDIT
AGREEMENT"), by and among Company, Finance Sub, Lenders and Agents. Capitalized
terms used herein without definition shall have the same meanings herein as set
forth in the Credit Agreement.

                                    RECITALS

            WHEREAS, Lenders have agreed to extend their forbearance of exercise
of remedies under the Loan Documents as a result of certain Events of Default
subject to the terms, conditions and agreements set forth herein;

            NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, the parties hereto agree as follows:

SECTION 1.  AGREEMENT OF LENDERS

            Lenders hereby agree to forebear, until July 14, 2000, exercising
any remedies under the Loan Documents as a result of the Events of Default
caused by Borrowers failure to be in compliance with the covenants set forth in
subsection 6.6A(ii) or subsection 6.6A(iii) of the Credit Agreement for the
Fiscal Quarters ended March 31, 2000 and June 30, 2000, as long as no other
holder of Indebtedness of any Loan Party has accelerated such Indebtedness or is
otherwise exercising any remedies with respect thereto. Such delay or failure by
Agents or Lenders to exercise during such time any of their other rights and
remedies, shall not impair any power, right or privilege granted to Agents or
Lenders in the Credit Agreement or any other Loan Document or by law available
to them or be construed to be a waiver of or acquiescence in any Event of
Default under the Credit Agreement or any other Loan Document or a forbearance
of the exercise of remedies as a result of any other Event of Default under the
Credit Agreement.

                                       1
<PAGE>   2

SECTION 2.  REPRESENTATIONS AND WARRANTIES

            In order to induce Lenders to enter into this Agreement, Borrowers
hereby represent and warrant that:

            (a) each Borrower has all requisite corporate power and authority to
      enter into this Agreement;

            (b) the execution and delivery of this Agreement and the performance
      of this Agreement have been duly authorized by all necessary corporate
      action on the part of each Borrower;

            (c) the execution and delivery by each Borrower of this Agreement
      and the performance by each Borrower of this Agreement do not and will not
      (i) violate any provision of any law or any governmental rule or
      regulation applicable to each Borrower or any of its Subsidiaries, the
      Certificate or Articles of Incorporation or Bylaws of each Borrower or any
      of its Subsidiaries or any order, judgment or decree of any court or other
      agency of government binding on a Borrower or any of its Subsidiaries,
      (ii) conflict with, result in a breach of or constitute (with due notice
      or lapse of time or both) a default under any Contractual Obligation of
      any Borrower or any of its Subsidiaries, (iii) result in or require the
      creation or imposition of any Lien upon any of the properties or assets of
      any Borrower or any of its Subsidiaries (other than Liens created under
      any of the Loan Documents in favor of Agent on behalf of Lenders), or (iv)
      require any approval of stockholders or any approval or consent of any
      Person under any Contractual Obligation of any Borrower or any of its
      Subsidiaries;

            (d) the execution and delivery by each Borrower of this Agreement
      and the performance by each Borrower of this Agreement do not and will not
      require any registration with, consent or approval of, or notice to, or
      other action to, with or by, any federal, state or other governmental
      authority or regulatory body;

            (e) this Agreement has been duly executed and delivered by each
      Borrower and constitutes the legally valid and binding obligations of each
      Borrower, enforceable against each Borrower in accordance with its terms,
      except as may be limited by bankruptcy, insolvency, reorganization,
      moratorium or similar laws relating to or limiting creditors' rights
      generally or by equitable principles relating to enforceability;

            (f) excluding any Event of Default or Potential Event of Default
      which is subject to a forbearance agreement between the Borrowers and the
      Lenders, there exists no Event of Default or Potential Event of Default
      under the Credit Agreement;

            (g) all representations and warranties contained in the Credit
      Agreement and the other Loan Documents are true, correct and complete in
      all material respects on and as of the date hereof except to the extent
      such representations and warranties specifically relate to an earlier
      date, in which case they were true, correct and complete in all material
      respects on and as of such earlier date; and

                                       2
<PAGE>   3

            (h) Borrowers have performed all agreements (other than compliance
      with the financial covenants subject to the forbearance agreement between
      Borrowers and Lenders) to be performed on its part as set forth in the
      Credit Agreement.

SECTION 3.  ACKNOWLEDGMENT AND CONSENT

            Borrowers and Subsidiary Guarantors are collectively referred to
herein as "CREDIT SUPPORT PARTIES" and the Company Guaranty, the Subsidiary
Guaranty and the Collateral Documents to which each Borrower and Subsidiary
Guarantor, as applicable, are party are herein referred to collectively as the
"CREDIT SUPPORT DOCUMENTS." Each Loan Party hereby acknowledges that it has
reviewed the terms and provisions of the Credit Agreement and this Agreement.
Each Loan Party hereby confirms that each Credit Support Document to which it is
a party or otherwise bound and all Collateral encumbered thereby will continue
to guaranty or secure, as the case may be, to the fullest extent possible the
payment and performance of all "Guarantied Obligations" and "Secured
Obligations" as the case may be (in each case as such terms are defined in the
applicable Credit Support Document), including without limitation the payment
and performance of all such "Guarantied Obligations" or "Secured Obligations,"
as the case may be, in respect of the Obligations of Borrowers now or hereafter
existing under or in respect of the Credit Agreement. Each Credit Support Party
acknowledges and agrees that any of the Credit Support Documents to which it is
a party or otherwise bound shall continue in full force and effect and that all
of its obligations thereunder shall be valid and enforceable and shall not be
impaired or limited by the execution or effectiveness of this Agreement. Each
Credit Support Party (other than Borrowers) acknowledges and agrees that (i)
notwithstanding the conditions to effectiveness set forth in this Agreement,
such Credit Support Party is not required by the terms of the Credit Agreement
or any other Loan Document to consent to this Agreement and (ii) nothing in the
Credit Agreement, this Agreement or any other Loan Document shall be deemed to
require the consent of such Credit Support Party to any future consents or
waivers to the Credit Agreement.

            Each of the Credit Support Parties hereby acknowledges and confirms
that it does not have any grounds and hereby agrees not to challenge (or to
allege or to pursue any matter, cause or claim arising under or with respect to)
the Credit Agreement or any of the other Loan Documents (including, without
limitation, any of the Credit Support Documents), any of the terms or conditions
thereof or thereunder, or the status of any thereof as legal, valid and binding
obligations enforceable in accordance with their respective terms; and it does
not possess (and hereby forever waives, remises, releases, discharges and holds
harmless the Lenders and the Agent, and their respective affiliates,
stockholders, directors, officers, employees, attorneys, agents and
representatives and each of their respective heirs, executors, administrators,
successors and assigns (collectively, the "INDEMNIFIED PARTIES") from and
against, and agrees not to allege or pursue) any action, cause of action, suit,
debt, claim, counterclaim, cross-claim, demand, defense, offset, opposition,
demand and other right of action whatsoever, whether in law, equity or otherwise
(which it, all those claiming by, through or under it, or its successors or
assigns, have or may have) against the Indemnified Parties, or any of them,
prior to or as of the date of this Agreement and the effective date of this
Agreement for, upon, or by reason of, any matter, cause or thing whatsoever,
arising out of, or relating to the Credit Agreement or any of the other Loan
Documents (including, without limitation, any of the Credit Support Documents)
(including, without limitation, any payment, performance, validity or
enforceability of any or all

                                       3
<PAGE>   4

of the terms or conditions thereof or thereunder) or any transaction relating to
any of the foregoing, or any or all actions, courses of conduct or other matters
in any manner whatsoever relating to or otherwise connected with any of the
foregoing.

SECTION 4.  MISCELLANEOUS

            A.    EFFECT ON THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS.

            (i) Except as specifically modified by this Agreement, the Credit
      Agreement and the other Loan Documents shall remain in full force and
      effect and are hereby ratified and confirmed.

            (ii) The execution, delivery and performance of this Agreement shall
      not, except as expressly provided herein, constitute a waiver of any
      provision of, or operate as a waiver of any right, power or remedy of
      Agents or any Lender under, the Credit Agreement or any of the other Loan
      Documents.

            B.    HEADINGS.  Section and subsection headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose or be given any
substantive effect.

            C. APPLICABLE LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING
WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK), WITHOUT REGARD TO INCONSISTENT CONFLICTS OF LAWS PRINCIPLES.

            D. FEES AND EXPENSES. Borrowers acknowledge that all costs, fees and
expenses as described in subsection 9.3 of the Credit Agreement incurred by
Agents and their counsel with respect to this Agreement and the documents and
transactions contemplated hereby shall be for the account of Borrowers.
Borrowers shall concurrently with the execution and delivery of this Agreement
pay all accrued and unpaid legal fees of counsel to Arranger.

            E. COUNTERPARTS; EFFECTIVENESS. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document. This Agreement shall become
effective upon (i) the execution of counterparts hereof by Borrowers and
Subsidiary Guarantors and by Lenders constituting Requisite Lenders and receipt
by Borrowers and Administrative Agent of written or telephonic notification of
such execution and authorization of delivery thereof and (ii) payment of the
expenses referenced in Section 4.D hereof.

                         [Signature pages to follow]

                                       4
<PAGE>   5

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

                                          BORROWERS:

                                          e.spire COMMUNICATIONS, INC.

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          e.spire FINANCE CORPORATION

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          LENDERS:

                                          GOLDMAN SACHS CREDIT PARTNERS L.P.,
                                          individually, as Arranger and as
                                          Syndication Agent

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          THE BANK OF NEW YORK, individually
                                          and as Administrative Agent

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                      S-1
<PAGE>   6

                                          FIRST UNION NATIONAL BANK,
                                          individually and as Documentation
                                          Agent

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          CIT LENDING SERVICES CORPORATION
                                          (f/k/a Newcourt Commercial Finance
                                          Corporation), an affiliate of The CIT
                                          Group, Inc., individually and as
                                          Collateral Agent

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          BANKERS LIFE AND CASUALTY COMPANY

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          CONSECO ANNUITY ASSURANCE COMPANY

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          DEUTSCHE BANK AG NEW YORK BRANCH

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                      S-2
<PAGE>   7

                                          FOOTHILL CAPITAL CORPORATION

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          FRANKLIN FLOATING RATE TRUST

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          MERRILL LYNCH GLOBAL INVESTMENT
                                          SERIES INCOME STRATEGIES PORTFOLIO

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                          MERRILL LYNCH SENIOR FLOATING RATE
                                          FUND INC.

                                          By:
                                              --------------------------------
                                             Title:
                                                   --------------------------

                                      S-3
<PAGE>   8

                                          SUBSIDIARY GUARANTORS:

                                          e.spire LEASING CORPORATION

                                          e.spireDATA, INC.

                                          ACSI LOCAL SWITCHED SERVICES, INC.

                                          ACSI LOCAL SWITCHED SERVICES OF
                                          VIRGINIA, INC.

                                          ACSI LONG DISTANCE, INC.

                                          ACSI NETWORK TECHNOLOGIES, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          ALBUQUERQUE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          AMARILLO, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          ATLANTA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          AUSTIN, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          BATON ROUGE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          BIRMINGHAM, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          BOISE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          CHARLESTON, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          CHATTANOOGA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          COLORADO SPRINGS, INC.

                                      S-4
<PAGE>   9

                                          AMERICAN COMMUNICATION SERVICES OF
                                          COLUMBIA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          COLUMBUS, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          CORPUS CHRISTI, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          DALLAS, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          D.C., INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          EL PASO, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          FORT WORTH, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          GREENVILLE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          HUNTSVILLE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          IRVING, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          JACKSON, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          JACKSONVILLE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          KANSAS CITY, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          KNOXVILLE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          LAS VEGAS, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          LEXINGTON, INC.

                                      S-5
<PAGE>   10

                                          AMERICAN COMMUNICATION SERVICES OF
                                          LITTLE ROCK, INC.

                                          AMERICAN COMMUNICATION SERVICES, OF
                                          LOUISIANA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          LOUISVILLE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          LUBBOCK, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          MARYLAND, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          MIAMI, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          MOBILE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          MONTGOMERY, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          PENSACOLA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          PIMA COUNTY, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          RALEIGH - DURHAM, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          RIO RANCHO, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          ROANOKE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          SAN ANTONIO, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          SAVANNAH, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          SHREVEPORT, INC.

                                      S-6
<PAGE>   11

                                          AMERICAN COMMUNICATION SERVICES OF
                                          SPARTANBURG, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          TALLAHASSEE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          TAMPA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          TULSA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          VIRGINIA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          WILMINGTON, INC.

                                          AMERICAN COMMUNICATIONS SERVICES
                                          INTERNATIONAL, INC.

                                          CYBERGATE, INC.

                                          FLORIDANET, INC.

                                          Each by:
                                                  ----------------------------
                                            Title:Authorized Signatory of
                                                  each of the foregoing
                                                  Subsidiary Guarantors

                                      S-7<PAGE>   1
                                                                       EXECUTION

                          E.SPIRE COMMUNICATIONS, INC.
                           E.SPIRE FINANCE CORPORATION

            AMENDMENT, WAIVER AND FORBEARANCE EXTENSION AGREEMENT

            THIS AMENDMENT, WAIVER AND FORBEARANCE AGREEMENT TO CREDIT AGREEMENT
(this "AGREEMENT") is dated as of July 14, 2000 and entered into by and among
e.spire Communications, Inc., a Delaware corporation ("COMPANY"), e.spire
Finance Corporation, a Delaware corporation ("FINANCE SUB"; Finance Sub and the
Company, collectively referred to as "BORROWERS"), the financial institutions
listed on the signature pages hereof ("LENDERS"), Goldman Sachs Credit Partners
L.P., as sole Lead Arranger and Syndication Agent, The Bank of New York, as
Administrative Agent for Lenders (in such capacity, "ADMINISTRATIVE AGENT"),
First Union National Bank, as Documentation Agent, and CIT Lending Services
Corporation, f/k/a Newcourt Commercial Finance Corporation, as Collateral Agent,
for purposes of Section 8 hereof, the Subsidiaries of Finance Sub listed on the
signature pages hereof ("SUBSIDIARY GUARANTORS") and, solely for purposes of
Section 3 hereof, The Huff Alternative Income Fund, L.P. (the "HUFF FUND"), and
is made with reference to that certain Credit Agreement, dated as of August 11,
1999 (as amended by the First Amendment dated November 24, 1999, the "CREDIT
AGREEMENT"), by and among Company, Finance Sub, Lenders and Agents. Capitalized
terms used herein without definition shall have the same meanings herein as set
forth in the Credit Agreement.

                                    RECITALS

            WHEREAS, the Borrowers and the Lenders have agreed to the terms of
an amendment and restatement of the Credit Agreement as set forth in the term
sheet attached hereto as Exhibit A (the "TERM SHEET");

            WHEREAS, the Borrowers and Lenders desire to enter into this
Agreement pursuant to which the Lenders and the Borrowers agree to enter into an
amended and restated credit agreement on the terms and conditions set for in the
Term Sheet, the Huff Fund agrees to perform its obligations under the Term
Sheet, and the Lenders agree to extend their forbearance of exercise of remedies
under the Loan Documents as a result of certain Events of Default, in each case
subject to the terms, conditions and agreements set forth herein;

            WHEREAS, the Borrowers have requested that the Lenders waive
compliance with subsection 6.5(i) of the Credit Agreement to permit the Company
to make its regularly scheduled interest payment on its 13-3/4% Senior Notes
which is due on July 17, 2000; and

            WHEREAS, in consideration of, and as an inducement to, the Lenders
entering into this Agreement, the Company has agreed to make a voluntary
prepayment in the amount of $15,000,000 of Loans outstanding under the Credit
Agreement;

                                       1
<PAGE>   2

            NOW, THEREFORE, in consideration of the premises and the agreements,
provisions and covenants herein contained, the parties hereto agree as follows:

SECTION 1.  AGREEMENT TO AMEND AND RESTATE CREDIT AGREEMENT.

            The Borrowers and the Lenders hereby agree to enter into an
amendment and restatement of the Credit Agreement on the terms and conditions
set forth in the Term Sheet, subject only to (a) the satisfactory negotiation,
execution and delivery of an amended and restated agreement reflecting such
terms and conditions and (b) there shall not have been any material adverse
change in the business, operations, properties, assets, or financial condition
of the Company and its Subsidiaries since the date of this Agreement.

SECTION 2.  EXTENSION OF FORBEARANCE AGREEMENT

            Lenders hereby agree to forebear, until the earlier of (a) the
effective date of an amended and restated credit agreement on the terms set
forth in the Term Sheet and (b) August 15, 2000, exercising any remedies under
the Loan Documents as a result of the Events of Default caused by Borrowers'
failure to be in compliance with (i) the covenants set forth in subsection
6.6A(ii) or subsection 6.6A(iii) of the Credit Agreement for the Fiscal Quarters
ended March 31, 2000 and June 30, 2000 and (ii) with subsection 5.8 of the
Credit Agreement with respect to Global Advanced Networks (Europe) B.V., as long
as no other holder of Indebtedness of any Loan Party has accelerated such
Indebtedness or is otherwise exercising any remedies with respect thereto. Such
delay or failure by Agents or Lenders to exercise during such time any of their
other rights and remedies, shall not impair any power, right or privilege
granted to Agents or Lenders in the Credit Agreement or any other Loan Document
or by law available to them or be construed to be a waiver of or acquiescence in
any Event of Default under the Credit Agreement or any other Loan Document or a
forbearance of the exercise of remedies as a result of any other Event of
Default under the Credit Agreement.

SECTION 3.  REPRESENTATIONS AND AGREEMENTS OF HUFF FUND

            The Huff Fund hereby represents and warrants to the Lenders that (a)
it has all requisite power and authority, including without limitation under its
partnership agreement and other constituent documents, to enter into this
Agreement and the agreement relating to the Lender Put (as defined in the Term
Sheet) upon the terms set forth in the Term Sheet (the "PUT AGREEMENT") and (b)
this Agreement has been duly executed and delivered by an authorized signatory
of the Huff Fund. The Huff Fund hereby further represents, warrants and agrees
(a) that it will enter into the Put Agreement on the terms and conditions set
forth in the Term Sheet, subject only to the satisfactory negotiation of the
definitive Put Agreement reflecting such terms and to the Borrowers and the
Lenders entering into an amendment and restatement of the Credit Agreement in
accordance with Section 1 hereof, (b) that it has unencumbered Cash, Cash
Equivalents, or available committed funds net of any debt or any other
obligations of at least $100 million, (c) to agree in the Put Agreement to
maintain unencumbered Cash, Cash Equivalents, or available committed funds net
of any debt or any other obligations of at least $100 million at all times
during the term of the Put Agreement, (d) to use its commercially reasonable
efforts to cause the agreements and documentation referred to in paragraphs (a),
(b), (c) and (e) of condition 3 (Additional Junior Capital and Prepayment
Requirements) set forth

                                       2
<PAGE>   3

under the caption "Conditions Precedent to Effectiveness of Amendment" in the
Term Sheet to be entered into in a commercially reasonable form.

SECTION 4.  WAIVERS

            Subject to the terms and conditions set forth herein and in reliance
on the representations and warranties of Borrowers herein contained, Lenders
hereby waive compliance with:

            (a) subsection 2.4(B)(i) of the Credit Agreement to the extent and
only to the extent the Company is giving the notice of prepayment set forth in
Section 6 hereof on the date of such prepayment rather than three Business Days'
prior to such prepayment as required by subsection 2.4(B)(i) of the Credit
Agreement; and

            (b) subsection 6.5(i) of the Credit Agreement to the extent and only
to the extent to permit the Company to make its regularly scheduled interest
payment in the amount of $15,125,000 on its 13-3/4% Senior Notes which is due on
July 17, 2000 despite the occurrence and continuance of certain Events of
Default.

SECTION 5.  LIMITATION OF WAIVERS

            Without limiting the generality of the provisions of subsection 9.6
of the Credit Agreement, the waiver set forth above shall be limited precisely
as written and relates solely to the noncompliance by Company with the
provisions of subsections 2.4(B)(i) and 6.5(i) of the Credit Agreement in the
manner and to the extent described above, and nothing in this Waiver shall be
deemed to:

            (a) constitute a waiver of compliance by Company with respect to (i)
      subsections 2.4(B)(i) and 6.5(i) of the Credit Agreement in any other
      instance or (ii) any other term, provision or condition of the Credit
      Agreement or any other instrument or agreement referred to therein; or

            (b) prejudice any right or remedy that Agents or any Lender may now
      have (except to the extent such right or remedy was based upon existing
      defaults that will not exist after giving effect to this Waiver) or may
      have in the future under or in connection with the Credit Agreement or any
      other instrument or agreement referred to therein.

SECTION 6.  VOLUNTARY PREPAYMENT

            The Company hereby gives notice to Administrative Agent that it is
making a voluntary prepayment of the Loans in the amount of $15,000,000,
together with accrued and unpaid interest and breakage costs with respect
thereto, on July 10, 2000. Notwithstanding anything in subsection 2.4 of the
Credit Agreement to the contrary, such prepayment shall be applied to reduce the
outstanding Loans as set forth in Exhibit B hereto.

                                       3
<PAGE>   4

SECTION 7.  REPRESENTATIONS AND WARRANTIES OF BORROWERS

            In order to induce Lenders to enter into this Agreement, Borrowers
hereby represent and warrant that:

            (a) each Borrower has all requisite corporate power and authority to
      enter into this Agreement;

            (b) the execution and delivery of this Agreement and the performance
      of this Agreement have been duly authorized by all necessary corporate
      action on the part of each Borrower;

            (c) the execution and delivery by each Borrower of this Agreement
      and the performance by each Borrower of this Agreement do not and will not
      (i) violate any provision of any law or any governmental rule or
      regulation applicable to Borrower or any of their Subsidiaries, the
      Certificate or Articles of Incorporation or Bylaws of Borrowers or any of
      their Subsidiaries or any order, judgment or decree of any court or other
      agency of government binding on Borrowers or any of their Subsidiaries,
      (ii) conflict with, result in a breach of or constitute (with due notice
      or lapse of time or both) a default under any Contractual Obligation of
      Borrowers or any of their Subsidiaries, (iii) result in or require the
      creation or imposition of any Lien upon any of the properties or assets of
      Borrowers or any of their Subsidiaries (other than Liens created under any
      of the Loan Documents in favor of Agent on behalf of Lenders), or (iv)
      require any approval of stockholders or any approval or consent of any
      Person under any Contractual Obligation of Borrowers or any of their
      Subsidiaries (other than the Stockholder Approval as defined in the Term
      Sheet);

            (d) the execution and delivery by each Borrower of this Agreement
      and the performance by each Borrower of this Agreement do not and will not
      require any registration with, consent or approval of, or notice to, or
      other action to, with or by, any federal, state or other governmental
      authority or regulatory body;

            (e) this Agreement has been duly executed and delivered by each
      Borrower and constitutes the legally valid and binding obligations of each
      Borrower, enforceable against each Borrower in accordance with its terms,
      except as may be limited by bankruptcy, insolvency, reorganization,
      moratorium or similar laws relating to or limiting creditors' rights
      generally or by equitable principles relating to enforceability;

            (f) after giving effect to this Agreement, excluding any Event of
      Default or Potential Event of Default which is subject to a forbearance
      agreement between the Borrowers and the Lenders, there exists no Event of
      Default or Potential Event of Default under the Credit Agreement;

            (g) all representations and warranties contained in the Credit
      Agreement and the other Loan Documents are true, correct and complete in
      all material respects on and as of the date hereof except to the extent
      such representations and warranties specifically relate (i) to an earlier
      date, in which case they were true, correct and complete in all material

                                       4
<PAGE>   5

      respects on and as of such earlier date or (ii) to an Event of Default or
      Potential Event of Default subject to a forbearance agreement between the
      Borrowers and the Lenders; and

            (h) Borrowers have performed all agreements (other than compliance
      with the covenants subject to the forbearance agreement between Borrowers
      and Lenders) to be performed on their part as set forth in the Credit
      Agreement.

SECTION 8.  ACKNOWLEDGMENT AND CONSENT

            Borrowers and Subsidiary Guarantors are collectively referred to
herein as "CREDIT SUPPORT PARTIES" and the Company Guaranty, the Subsidiary
Guaranty and the Collateral Documents to which each Borrower and Subsidiary
Guarantor, as applicable, are party are herein referred to collectively as the
"CREDIT SUPPORT DOCUMENTS." Each Loan Party hereby acknowledges that it has
reviewed the terms and provisions of the Credit Agreement and this Agreement.
Each Loan Party hereby confirms that each Credit Support Document to which it is
a party or otherwise bound and all Collateral encumbered thereby will continue
to guaranty or secure, as the case may be, to the fullest extent possible the
payment and performance of all "Guarantied Obligations" and "Secured
Obligations" as the case may be (in each case as such terms are defined in the
applicable Credit Support Document), including without limitation the payment
and performance of all such "Guarantied Obligations" or "Secured Obligations,"
as the case may be, in respect of the Obligations of Borrowers now or hereafter
existing under or in respect of the Credit Agreement. Each Credit Support Party
acknowledges and agrees that any of the Credit Support Documents to which it is
a party or otherwise bound shall continue in full force and effect and that all
of its obligations thereunder shall be valid and enforceable and shall not be
impaired or limited by the execution or effectiveness of this Agreement. Each
Credit Support Party (other than Borrowers) acknowledges and agrees that (i)
notwithstanding the conditions to effectiveness set forth in this Agreement,
such Credit Support Party is not required by the terms of the Credit Agreement
or any other Loan Document to consent to this Agreement and (ii) nothing in the
Credit Agreement, this Agreement or any other Loan Document shall be deemed to
require the consent of such Credit Support Party to any future consents or
waivers to the Credit Agreement.

            Each of the Credit Support Parties hereby acknowledges and confirms
that it does not have any grounds and hereby agrees not to challenge (or to
allege or to pursue any matter, cause or claim arising under or with respect to)
the Credit Agreement or any of the other Loan Documents (including, without
limitation, any of the Credit Support Documents), any of the terms or conditions
thereof or thereunder, or the status of any thereof as legal, valid and binding
obligations enforceable in accordance with their respective terms; and it does
not possess (and hereby forever waives, remises, releases, discharges and holds
harmless the Lenders and the Agent, and their respective affiliates,
stockholders, directors, officers, employees, attorneys, agents and
representatives and each of their respective heirs, executors, administrators,
successors and assigns (collectively, the "INDEMNIFIED PARTIES") from and
against, and agrees not to allege or pursue) any action, cause of action, suit,
debt, claim, counterclaim, cross-claim, demand, defense, offset, opposition,
demand and other right of action whatsoever, whether in law, equity or otherwise
(which it, all those claiming by, through or under it, or its successors or
assigns, have or may have) against the Indemnified Parties, or any of them,
prior to or as of the date of this Agreement and the effective date of this
Agreement for, upon, or by reason of, any

                                       5
<PAGE>   6

matter, cause or thing whatsoever, arising out of, or relating to the Credit
Agreement or any of the other Loan Documents (including, without limitation, any
of the Credit Support Documents) (including, without limitation, any payment,
performance, validity or enforceability of any or all of the terms or conditions
thereof or thereunder) or any transaction relating to any of the foregoing, or
any or all actions, courses of conduct or other matters in any manner whatsoever
relating to or otherwise connected with any of the foregoing.

SECTION 9.  MISCELLANEOUS

            A.    EFFECT ON THE CREDIT AGREEMENT AND THE OTHER LOAN
DOCUMENTS.

            (i) The Credit Agreement and the other Loan Documents shall remain
      in full force and effect and are hereby ratified and confirmed.

            (ii) The execution, delivery and performance of this Agreement shall
      not, except as expressly provided herein, constitute a waiver of any
      provision of, or operate as a waiver of any right, power or remedy of
      Agents or any Lender under, the Credit Agreement or any of the other Loan
      Documents.

            B.    HEADINGS.  Section and subsection headings in this
Agreement are included herein for convenience of reference only and shall not
constitute a part of this Agreement for any other purpose or be given any
substantive effect.

            C. APPLICABLE LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF
THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED
IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING
WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF
NEW YORK), WITHOUT REGARD TO INCONSISTENT CONFLICTS OF LAWS PRINCIPLES.

            D. FEES AND EXPENSES. Borrowers acknowledge that all costs, fees and
expenses as described in subsection 9.3 of the Credit Agreement incurred by
Agents and their counsel with respect to this Agreement and the documents and
transactions contemplated hereby shall be for the account of Borrowers.
Borrowers shall concurrently with the execution and delivery of this Agreement
pay $220,000 to The Management Network Group, Inc. and all accrued and unpaid
fees of O'Melveny & Myers LLP and Wachtell, Lipton, Rosen & Katz, counsel to
Arranger, for which invoices shall have been received by the Company on or prior
to the date hereof.

            E. COUNTERPARTS; EFFECTIVENESS. This Agreement may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate
counterparts and attached to a single counterpart so that all signature pages
are physically attached to the same document. This Agreement shall become
effective upon (i) the execution of counterparts hereof by Borrowers and
Subsidiary Guarantors, the Huff Fund and by Lenders constituting Requisite
Lenders and receipt by Borrowers and Administrative Agent of

                                       6
<PAGE>   7

written or telephonic notification of such execution and authorization of
delivery thereof, (ii) payment of the $15,000,000 prepayment referenced in
Section 6 hereof, and (iii) payment of the expenses referenced in Section 4.D
hereof.

                         [Signature pages to follow]

                                       7
<PAGE>   8

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

                                          BORROWERS:

                                          e.spire COMMUNICATIONS, INC.

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          e.spire FINANCE CORPORATION

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          LENDERS:

                                          GOLDMAN SACHS CREDIT PARTNERS L.P.,
                                          individually, as Arranger and as
                                          Syndication Agent

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          THE BANK OF NEW YORK, individually
                                          and as Administrative Agent

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                      S-1
<PAGE>   9

                                          FIRST UNION NATIONAL BANK,
                                          individually and as Documentation
                                          Agent

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          CIT LENDING SERVICES CORPORATION
                                          (f/k/a Newcourt Commercial Finance
                                          Corporation), an affiliate of The CIT
                                          Group, Inc., individually and as
                                          Collateral Agent

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          BANKERS LIFE AND CASUALTY COMPANY

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          CONSECO ANNUITY ASSURANCE COMPANY

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          DEUTSCHE BANK AG NEW YORK BRANCH

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                      S-2
<PAGE>   10

                                          FOOTHILL CAPITAL CORPORATION

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          FRANKLIN FLOATING RATE TRUST

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          MERRILL LYNCH GLOBAL INVESTMENT
                                          SERIES INCOME STRATEGIES PORTFOLIO

                                          By: Merrill Lynch Asset
                                              Management, L.P., as Investment
                                              Advisor

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                          MERRILL LYNCH SENIOR FLOATING RATE
                                          FUND INC.

                                          By:
                                             --------------------------------
                                             Title:
                                                   --------------------------

                                      S-3
<PAGE>   11

                                          FOR PURPOSES OF SECTION 3 ONLY:

                                          THE HUFF ALTERNATIVE INCOME FUND,
                                          L.P.

                                          By:
                                              --------------------------------
                                          Name: William R. Huff
                                          Title:
                                                   ---------------------------

                                          FOR PURPOSES OF SECTION 8 ONLY:

                                          SUBSIDIARY GUARANTORS:

                                          e.spire LEASING CORPORATION

                                          e.spireDATA, INC.

                                          ACSI LOCAL SWITCHED SERVICES, INC.

                                          ACSI LOCAL SWITCHED SERVICES OF
                                          VIRGINIA, INC.

                                          ACSI LONG DISTANCE, INC.

                                          ACSI NETWORK TECHNOLOGIES, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          ALBUQUERQUE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          AMARILLO, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          ATLANTA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          AUSTIN, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          BATON ROUGE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          BIRMINGHAM, INC.

                                      S-4
<PAGE>   12

                                          AMERICAN COMMUNICATION SERVICES OF
                                          BOISE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          CHARLESTON, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          CHATTANOOGA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          COLORADO SPRINGS, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          COLUMBIA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          COLUMBUS, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          CORPUS CHRISTI, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          DALLAS, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          D.C., INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          EL PASO, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          FORT WORTH, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          GREENVILLE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          HUNTSVILLE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          IRVING, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          JACKSON, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          JACKSONVILLE, INC.

                                      S-5
<PAGE>   13

                                          AMERICAN COMMUNICATION SERVICES OF
                                          KANSAS CITY, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          KNOXVILLE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          LAS VEGAS, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          LEXINGTON, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          LITTLE ROCK, INC.

                                          AMERICAN COMMUNICATION SERVICES, OF
                                          LOUISIANA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          LOUISVILLE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          LUBBOCK, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          MARYLAND, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          MIAMI, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          MOBILE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          MONTGOMERY, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          PENSACOLA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          PIMA COUNTY, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          RALEIGH - DURHAM, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          RIO RANCHO, INC.

                                      S-6
<PAGE>   14

                                          AMERICAN COMMUNICATION SERVICES OF
                                          ROANOKE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          SAN ANTONIO, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          SAVANNAH, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          SHREVEPORT, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          SPARTANBURG, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          TALLAHASSEE, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          TAMPA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          TULSA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          VIRGINIA, INC.

                                          AMERICAN COMMUNICATION SERVICES OF
                                          WILMINGTON, INC.

                                          AMERICAN COMMUNICATIONS SERVICES
                                          INTERNATIONAL, INC.

                                          CYBERGATE, INC.

                                          FLORIDANET, INC.

                                          Each by:
                                                  ----------------------------
                                            Name:
                                            Title:Authorized Signatory of
                                                  each of the foregoing
                                                  Subsidiary Guarantors

                                      S-7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00013-of-00352.parquet"}]]