Document:

Credit Agreement

  
 EXHIBIT 10.4

  
 $20,800,000 
  
 CREDIT AGREEMENT 
  
 Dated as of December 22, 2004 
  
 Among 
  
 MADISON RIVER TELEPHONE COMPANY LLC 
  

as Borrower 
  
 and 
  
 THE LENDERS FROM TIME TO TIME PARTY HERETO 
  
 as Lenders 
  
 and

  
 MERRILL LYNCH CAPITAL CORPORATION 
  
 as Administrative Agent 
  
 and 
  
 MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED 
  
 as Sole Lead Arranger, Syndication Agent and Documentation Agent

  
 TABLE OF CONTENTS

  

			
	 Section

	  	Page

		
	 ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	  	1
		
	 SECTION 1.01. Certain Defined Terms
	  	1
	 SECTION 1.02. Computation of Time Periods; Other Definitional Provisions
	  	15
	 SECTION 1.03. Accounting Terms
	  	15
		
	 ARTICLE II AMOUNTS AND TERMS OF THE ADVANCES
	  	15
		
	 SECTION 2.01. The Advances
	  	15
	 SECTION 2.02. Repayment of Advances
	  	15
	 SECTION 2.03. Prepayments
	  	15
	 SECTION 2.04. Interest
	  	16
	 SECTION 2.05. Fees
	  	17
	 SECTION 2.06. Payments and Computations
	  	18
	 SECTION 2.07. Taxes
	  	18
	 SECTION 2.08. Sharing of Payments, Etc.
	  	21
	 SECTION 2.09. Use of Proceeds
	  	21
	 SECTION 2.10. Evidence of Debt
	  	21
		
	 ARTICLE III CONDITIONS OF LENDING
	  	22
		
	 SECTION 3.01. Conditions Precedent to the Initial Advance
	  	22
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	23
		
	 SECTION 4.01. Representations and Warranties of the Borrower
	  	23
		
	 ARTICLE V COVENANTS OF THE BORROWER
	  	27
		
	 SECTION 5.01. Affirmative Covenants
	  	27
	 SECTION 5.02. Negative Covenants
	  	29
		
	 ARTICLE VI EVENTS OF DEFAULT
	  	36
		
	 SECTION 6.01. Events of Default
	  	36
		
	 ARTICLE VII THE AGENTS
	  	38
		
	 SECTION 7.01. Authorization and Action
	  	38
	 SECTION 7.02. Agents’ Reliance, Etc.
	  	38
	 SECTION 7.03. MLCC, MLPF&S and Affiliates
	  	39
	 SECTION 7.04. Lender Credit Decision
	  	39
	 SECTION 7.05. Indemnification
	  	39
	 SECTION 7.06. Successor Agents
	  	40

  

 ii 

			
	 ARTICLE VIII MISCELLANEOUS
	  	40
		
	 SECTION 8.01. Amendments, Etc.
	  	40
	 SECTION 8.02. Notices, Etc.
	  	41
	 SECTION 8.03. No Waiver; Remedies
	  	41
	 SECTION 8.04. Costs and Expenses
	  	41
	 SECTION 8.05. Right of Set-off
	  	42
	 SECTION 8.06. Binding Effect
	  	42
	 SECTION 8.07. Assignments and Participations
	  	42
	 SECTION 8.08. Execution in Counterparts
	  	44
	 SECTION 8.09. Confidentiality
	  	45
	 SECTION 8.10. Jurisdiction, Etc.
	  	45
	 SECTION 8.11. Governing Law
	  	45
	 SECTION 8.12. Waiver of Jury Trial
	  	46

  

 iii 

					
	SCHEDULES	  	 	  	 
			
	Schedule 4.01(a)	  	-	  	Equity Interest Holders
	Schedule 4.01(b)	  	-	  	Subsidiaries
	Schedule 4.01(b)(II)	  	 	  	Existing Liens
	Schedule 4.01(f)	  	-	  	Disclosed Litigation
	Schedule 4.01(o)	  	-	  	Tax Sharing Agreements
	Schedule 4.01(q)	  	-	  	Existing Debt and Surviving Debt

  

					
	EXHIBITS	  	 	  	 
			
	Exhibit A-1	  	-	  	Form of Term Note
	Exhibit A-2	  	-	  	Form of PIK Note
	Exhibit B	  	-	  	Form of Assignment and Acceptance
	Exhibit C	  	-	  	Form of Solvency Certificate
	Exhibit D-1	  	-	  	Form of Opinion of External Counsel to the Borrower
	Exhibit D-2	  	-	  	Form of Opinion of Internal Counsel to the Borrower

  

 iv 

 CREDIT AGREEMENT 
  
 CREDIT AGREEMENT (this “Agreement”) dated as of December 22, 2004 among MADISON RIVER TELEPHONE
COMPANY LLC, a Delaware limited liability company (the “Borrower”), the Lenders (as hereinafter defined), MERRILL LYNCH CAPITAL CORPORATION (“MLCC”), as administrative agent (together with any
successor administrative agent appointed pursuant to Article VII, the “Administrative Agent”) for the Lenders and MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (“MLPF&S”), as sole lead
arranger, syndication agent and documentation agent (the “Lead Arranger”; together with the Administrative Agent, collectively, the “Agents”). 
  
 PRELIMINARY STATEMENTS 
  
 (1) The Borrower has requested that the Lenders extend credit to the Borrower
to enable it to refinance in full all indebtedness outstanding under the 8.4257% notes due December 31, 2010, dated April 10, 2002 and issued by the Borrower to Daniel M. Bryant, to G. Allan Bryant jointly with Linda S. Bryant and to the Michael E.
Bryant Life Trust (collectively, the “Bryant Notes”) and to pay related costs, fees and expenses. 
  
 (2) In connection therewith, the Borrower desires to obtain pursuant to this Agreement, from the Lenders an initial Advance in an aggregate principal
amount not to exceed $20,800,000. 
  
 (3) The Lenders are willing,
but only on the terms and subject to the conditions hereinafter set forth, to make Advances to the Borrower. 
  
 NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements contained herein, the parties hereto hereby 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): 
  
 “Acquired Debt” means, with respect to any specified Person, (a) Indebtedness or
Disqualified Stock of any other Person existing at the time such other Person is merged with or into or became a Subsidiary of such specified Person, whether or not such Indebtedness is incurred in connection with, or in contemplation of, such other
Person merging with or into, or becoming a Subsidiary of, such specified Person, and (b) Indebtedness secured by a Lien encumbering any asset acquired by such specified Person. 
  
 “Administrative Agent” has the meaning specified in the recital of parties to this
Agreement. 
  
 “Administrative
Agent’s Account” means the account of the Administrative Agent specified by the Administrative Agent in writing to the Lenders and the Borrower from time to time. 

 “Advance” has the meaning specified in Section 2.01. 

 
 “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 Interests of such Person or to direct or cause
the direction of the management and policies of such Person, whether through the ownership of Voting Interests, by contract or otherwise. 
  
 “Affiliate Transaction” has the meaning specified in Section 5.02(i). 
  
 “Agents” has the meaning specified
in the recital of parties to this Agreement. 
  
 “Agreement” has the meaning specified in the recital of parties to this Agreement. 
  
 “Approved Fund” means any Fund that is administered or managed by (i) a Lender, (ii) an Affiliate of a Lender or
(iii) an entity or an Affiliate of an entity that administers or manages a Lender. 
  
 “Asset Sale” means the sale, lease, conveyance or other disposition of any assets or rights; provided that
“Asset Sale” shall not include the redemption of any subordinated capital certificates in Rural Telephone Finance Cooperative. 
  
 “Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an Eligible Assignee
(with the consent of any party whose consent is required by Section 8.07 or the definition of “Eligible Assignee”), and accepted by the Administrative Agent, in accordance with Section 8.07 and in substantially the form of Exhibit B hereto
or any other form approved by the Administrative Agent. 
  
 “Borrower” has the meaning specified in the recital of parties to this Agreement. For the avoidance of doubt, in the case of a conversion of the Borrower into a Delaware corporation pursuant to
Section 265 of the Delaware General Corporation Law and in accordance with Section 5.02(d), the “Borrower” shall mean such Delaware corporation. 
  
 “Borrower’s Account” means the account of the Borrower specified by the Borrower in writing to the
Administrative Agent from time to time. 
  
 “Borrowing” means a borrowing consisting of simultaneous Advances made by the Lenders. 
  
 “Bryant Notes” has the meaning specified in the Preliminary Statements. 
  
 “Business Day” means a day of the
year on which banks are not required or authorized by law to close in New York City. 
  
 “Capital Lease Obligation” means, at the time any determination thereof is to be made, the amount of the liability
in respect of a capital lease that would at that time be required to be capitalized on a balance sheet in accordance with GAAP. 
  

 2 

 “Capital Stock” means (a) in the case of a corporation, corporate
stock (including common stock and preferred stock), (b) in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock, (c) in the case of a
partnership or limited liability company, partnership or membership interests (whether general or limited), and (d) any other interest, other than straight debt obligations, or participation that confers on a Person the right to receive a share of
the profits and losses of, or distributions of assets of, the issuing Person. 
  
 “Capitalized Leases” means all leases that have been or should be, in accordance with GAAP, recorded as capitalized leases. 
  
 “Cash Equivalents” means (a) United States dollars, (b) securities issued or
directly and fully guaranteed or insured by the United States government or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) having maturities of not more than
365 days from the date of acquisition, (c) certificates of deposit and eurodollar time deposits with maturities of 365 days or less from the date of acquisition, bankers’ acceptances with maturities not exceeding 365 days and overnight bank
deposits, in each case, with any domestic commercial bank having capital and surplus in excess of $500,000,000 and a Thompson Bank Watch Rating of “B” or better, (d) repurchase obligations with a term of not more than seven days for
underlying securities of the types described in clauses (b) and (c) above entered into with any financial institution meeting the qualifications specified in clause (c) above, (e) commercial paper having the highest rating obtainable from
Moody’s Investors Service, Inc. or Standard & Poor’s Corporation and in each case maturing within 365 days after the date of acquisition, and (f) money market funds at least 95% of the assets of which constitute Cash Equivalents of the
kinds described in clauses (a) through (e) of this definition. 
  
 “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 of any of the following: (a) at any time prior to the initial public offering of any Equity Interests of the Borrower, the Principals and the Related
Parties of the Principals shall own beneficially or of record on an aggregate basis 65% or less of the combined voting power of all Voting Interests in the Borrower or in any newly formed Delaware corporation that holds 100% of the beneficial and
record ownership interests in the Borrower; or (b) at any time after the initial public offering of any Equity Interests of the Borrower, any Person or two or more Persons acting in concert other than a Principal or a Related Party of a Principal
shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended), directly or indirectly, of Voting Interests of the Borrower (or other
securities convertible into such Voting Interests) representing 20% or more of the combined voting power of all Voting Interests of the Borrower, unless the Principals and the Related Parties of the Principals shall beneficially own a greater
percentage of Voting Interests of the Borrower than such Person or Persons; or (c) during any period of up to 24 consecutive months, commencing on the date of this Agreement, Continuing Directors shall cease for any reason to constitute a majority
of the board of directors of the Borrower. 
  
 “Closing Date” has the meaning specified in Section 3.01. 
  

 3 

 “Commitment Letter” means the Commitment Letter dated November
23, 2004 between the Borrower and MLCC, as amended. 
  
 “Confidential Information” means information that the Borrower furnishes to any Agent or any Lender, but does not include any such information that is or becomes generally available to the public other than by a
breach by such Agent or such Lender of any confidentiality agreement or provision, including, without limitation, Section 8.09 hereof, or that is or becomes available to such Agent or such Lender on a non confidential basis from a source other than
the Borrower. 
  
 “Consolidated” refers to the consolidation of accounts in accordance with GAAP. 
  
 “Continuing Directors” means, as of any date of determination, the directors of the Borrower on the date of the
initial public offering of the equity securities of the Borrower and each other director if, in each case, such other director’s nomination for election or election to the board of directors of the Borrower is recommended or approved by at
least a majority of the then Continuing Directors. 
  
 “Cooperative Certificate” means any subordinated or other capital certificate issued by the Rural Telephone Finance Cooperative, Rural Telephone Bank or other similarly situated telecommunications lender. 

 
 “Credit Facilities” means one or
more debt facilities or commercial paper facilities, in each case with banks or other institutional lenders providing for revolving credit loans, term loans, receivables financing (including through the sale of receivables to such lenders or to
special purpose entities formed to borrow from such lenders against such receivables) or letters of credit, in each case, as amended, restated, modified, renewed, refunded, replaced or refinanced in whole or in part from time to time. 
  
 “Default” means any Event of Default
or any event that would constitute an Event of Default but for the passage of time or the requirement that notice be given or both. 
  
 “Default Interest” has the meaning set forth in Section 2.04(b). 
  
 “Disclosed Litigation” has the
meaning specified in Section 3.01(d). 
  
 “Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any security into which it is convertible, or for which it is exchangeable, in each case at the option of the holder thereof), or
upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior to the date that is 91 days after the date
specified in clause (b) of the definition of the Maturity Date. Notwithstanding the preceding sentence, any Capital Stock that would constitute Disqualified Stock solely because the holders thereof have the right to require the Borrower to
repurchase such Capital Stock upon the occurrence of a change of control or an asset sale shall not constitute Disqualified Stock if the terms of such Capital Stock provide that the Borrower may not repurchase or redeem any such Capital Stock
pursuant to such provisions unless such repurchase or redemption complies with Section 5.02(f) hereof. 
  
 “Eligible Assignee” means (a) a Lender or an Approved Fund; (b) an Affiliate of a Lender; (c) a commercial bank
organized under the laws of the United States, or any State thereof, and having total assets in excess of $50,000,000; (d) a savings and loan association or 

  

 4 

 
savings bank organized under the laws of the United States, or any State thereof, and having total assets in excess of $50,000,000; (e) a commercial bank
organized under the laws of any other country that is a member of the OECD or has concluded special lending arrangements with the International Monetary Fund associated with its General Arrangements to Borrow, or a political subdivision of any such
country, and having total assets in excess of $50,000,000, so long as such bank is acting through a branch or agency located in the United States; (f) the central bank of any country that is a member of the OECD; (g) a finance company, insurance
company or other financial institution or fund (whether a corporation, partnership, trust or other entity) that is engaged in making, purchasing or otherwise investing in commercial bank loans in the ordinary course of its business and having total
assets in excess of $50,000,000; and (h) any other Person approved by the Administrative Agent and, unless an Event of Default has occurred and is continuing at the time any assignment is effected pursuant to Section 8.07, the Borrower, such
approval not to be unreasonably withheld or delayed; provided, however, that neither the Borrower nor any Affiliate of the Borrower shall qualify as an Eligible Assignee under this definition. 
  
 “Engagement Letter” means the
Engagement Letter dated November 23, 2004 between the Borrower and MLPF&S, as amended. 
  
 “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. 
  
 “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, Capital Stock and all warrants, options or other rights to acquire Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock). 
  
 “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 the Borrower, or under common control with the Borrower, 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

  

 5 

 
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); (d) the cessation of operations at a facility of the
Borrower or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by the Borrower 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 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. 
  
 “Excluded Asset Sale” means any
Asset Sale that constitutes any of the following (a) (i) in the case of any Asset Sale by the Borrower, transactions that involve assets having a fair market value of less than $1,000,000 in the aggregate in any Fiscal Year or (ii) in the case of
any Asset Sale by the Subsidiaries of the Borrower, a single transaction or a series of related transactions that involve assets having a fair market value of less than $1,000,000, (b) a transfer of assets between or among the Borrower and its
Restricted Subsidiaries, (c) the sale or other disposition of cash or Cash Equivalents, (d) the sale, lease, conveyance or other disposition of (i) real property or leasehold interests or (ii) equipment, to the extent the proceeds thereof are
reinvested in the business of the Borrower or such Restricted Subsidiary within 120 days of such Asset Sale, (e) the sale, lease, conveyance or other disposition of inventory, accounts receivable or other current assets in the ordinary course of
business, (f) the license of intellectual property in the ordinary course of business, (g) the issuance or sale by the Borrower or any of its Subsidiaries of Equity Interests in any Subsidiary of the Borrower; provided that such issuance or
sale shall be deemed an issuance or sale of Equity Interests referred to in Section 2.03(b)(i)(C), or (h) the loss of property through (i) fire, accident or other casualty (including, without limitation, any transfer of title to property to a
casualty insurer in settlement of an insurance claim) or (ii) condemnation, expropriation or other seizure by any Governmental Authority; provided that in no event shall the sale, transfer or other disposition of any Equity Interest in
Madison River Capital constitute an “Excluded Asset Sale.” 
  
 “Excluded Issuance” means (a) with the respect to the incurrence, sale or issuance of Indebtedness, (i) with respect to Indebtedness incurred by the Borrower, Indebtedness permitted under
clauses (i), (ii), (iv), (v), (vii), (viii) and (ix) of Section 5.02(b) hereof, and (ii) with respect to Indebtedness incurred by Madison River Capital and its Subsidiaries, any Indebtedness permitted to be incurred under the Indenture, other than
Indebtedness incurred to refinance the Senior Notes in accordance with Section 5.02(k) hereof and (b) with the respect to the sale or issuance of any Equity Interests, (i) any issuance of Equity Interests to the holders of the Bryant Notes as
partial consideration for their repayment in full, (ii) any sale or issuance of Equity Interests by a Restricted Subsidiary of the Borrower to the Borrower or to another Restricted Subsidiary of the Borrower, or (iii) any Equity Interests issued as
consideration for any acquisition permitted under the Indenture. 
  

 6 

 “Existing Debt” means Indebtedness of the Borrower outstanding
immediately before the occurrence of the Closing Date. 
  
 “Facility” means, at any time, the aggregate amount of the outstanding Advances owed to the Lenders at such time. 
  
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during such
period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day for such transactions received by the Administrative Agent from
three Federal funds brokers of recognized standing selected by it. 
  
 “Fiscal Year” means a fiscal year of the Borrower and its Consolidated Subsidiaries ending on December 31 in any calendar year. 
  
 “Fund” means any Person (other than an individual) that is or will be engaged in
making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business. 
  
 “GAAP” has the meaning specified in Section 1.03. 
  
 “Governmental Authority” means any nation or government, any state, province,
city, municipal entity or other political subdivision thereof, and any governmental, executive, legislative, judicial, administrative or regulatory agency, department, authority, instrumentality, commission, board, bureau or similar body, whether
federal, state, provincial, territorial, local or foreign. 
  
 “Governmental Authorization” means any authorization, approval, consent, franchise, license, covenant, order, ruling, permit, certification, exemption, notice, declaration or similar
right, undertaking or other action of, to or by, or any filing, qualification or registration with, any Governmental Authority. 
  
 “Guarantee” means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary
course of business, direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Indebtedness. 
  
 “Hazardous Materials” means (a)
petroleum or petroleum products, by-products or breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other chemicals, materials or substances designated, classified or
regulated as hazardous or toxic or as a pollutant or contaminant under any Environmental Law. 
  
 “Hedging Obligations” means, with respect to any Person, the obligations of such Person under (a) interest rate
swap agreements, interest rate cap agreements and interest rate collar agreements, and (b) other agreements or arrangements designed to protect such Person against fluctuations in interest rates. 
  

 7 

 “Indebtedness” means, with respect to any specified Person, any
indebtedness of such Person, whether or not contingent, in respect of (a) borrowed money, (b) evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof), (c) banker’s
acceptances, (d) representing Capital Lease Obligations, (e) the balance deferred and unpaid of the purchase price of any property, except any such balance that constitutes an accrued expense or trade payable, or (f) representing any Hedging
Obligations, if and to the extent any of the preceding items (other than letters of credit and Hedging Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in accordance with GAAP. In addition, the term
“Indebtedness” includes all Indebtedness of others secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified Person; provided that, where such Indebtedness is not assumed,
the amount of such Indebtedness will be the lesser of (i) the fair market value of such asset as of the date of determination and (ii) the amount of such Indebtedness) and, to the extent not otherwise included, the Guarantee by such Person of any
indebtedness of any other Person. The amount of any Indebtedness outstanding as of any date shall be (i) the accreted value thereof, in the case of any Indebtedness issued with original issue discount, and (ii) the principal amount thereof, together
with any interest thereon that is more than 30 days past due, in the case of any other Indebtedness. The term “Indebtedness” shall not include the aggregate face value of any Cooperative Certificates. 
  
 “Indemnified Party” has the meaning
specified in Section 8.04(b). 
  
 “Indemnified Taxes” has the meaning specified in Section 2.07(a). 
  
 “Indenture” means the indenture dated as of February 17, 2000 relating to Madison River Capital’s 13.25%
Senior Notes due 2010 as in effect on the Closing Date. 
  
 “Initial Lender” means MLCC. 
  
 “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. 
  
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, and the regulations promulgated and rulings issued thereunder. 
  
 “Investments” means, with respect to
any Person, all investments by such Person in other Persons (including Affiliates) in the forms of direct or indirect loans (including guarantees of Indebtedness or other obligations), advances or capital contributions (excluding commission, travel
and similar advances to officers and employees made in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified
as investments on a balance sheet prepared in accordance with GAAP. If the Borrower sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Borrower such that, after giving effect to any such sale
or disposition, such Person is no longer a Restricted Subsidiary of the Borrower, the Borrower shall be deemed to have made an Investment on the date of any such sale or disposition equal to the fair market value of the Equity Interests of such
Restricted Subsidiary not sold or disposed of in an amount determined as provided in the final paragraph of Section 5.02(f) hereof. 
  
 “Lead Arranger” has the meaning specified in the recital of parties to this Agreement. 
  

 8 

 “Lenders” means the Initial Lender and each Person that shall
become a Lender hereunder pursuant to Section 8.07 for so long as such Lender or Person, as the case may be, shall be a party to this Agreement. 
  
 “Lending Office” means, with respect to the Initial Lender, 4 World Financial Center, North Tower, New York, New
York 10080, Attention: Wissam Kairouz and, with respect to any other Lender, the office of such Lender specified in the Assignment and Acceptance pursuant to which it became a Lender, or such other office of each Lender as such Lender may from time
to time specify in writing to the Borrower and the Administrative Agent. 
  
 “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to give any
financing statement under the Uniform Commercial Code (or equivalent statutes) of any jurisdiction. 
  
 “Loan Documents” means (a) this Agreement and (b) the Notes, in each case as amended. 
  
 “Madison River Capital” means
Madison River Capital, LLC, a Delaware limited liability company and a direct Subsidiary of the Borrower. 
  
 “Margin Stock” has the meaning specified in Regulation U. 
  
 “Material Adverse Change” means any
material adverse change in the business, financial condition, results of operations or properties of the Borrower and its Subsidiaries, taken as a whole. 
  
 “Material Adverse Effect” means a material adverse effect on (a) the business, financial condition, results of
operations or properties of the Borrower and its Subsidiaries, taken as a whole, (b) the rights and remedies of any Agent or any Lender under any Loan Document or (c) the ability of the Borrower to perform its Obligations under any Loan Document.

  
 “Maturity Date” means
the earlier to occur of (a) the date on which the Advances are required to be repaid or prepaid in full pursuant to Section 2.03 or 6.01 and (b) May 22, 2010. 
  

“MLCC” has the meaning specified in the recital of parties to this Agreement. 
  
 “MLPF&S” has the meaning
specified in the recital of parties to this Agreement. 
  
 “Multiemployer Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which the Borrower 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 the Borrower or any ERISA Affiliate and at least one Person other than the Borrower and the ERISA Affiliates or (b) was so maintained and in respect of which the Borrower 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. 
  

 9 

 “Net Cash Proceeds” means, (a) with respect to any Asset Sale by
the Borrower or any of its Subsidiaries the excess, if any, of (i) the sum of cash and Cash Equivalents received in connection with such Asset Sale (including any cash or Cash Equivalents received by way of deferred payment pursuant to, or by
monetization of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of (A) the amount of any Indebtedness that is secured by a Lien on the asset or assets that were the subject of such Asset Sale and is required to
be repaid in connection with such Asset Sale, (B) the reasonable out-of-pocket costs, fees, commissions, premiums and expenses incurred by the Borrower or the applicable Subsidiary, (C) federal, state, provincial, foreign and local taxes and other
taxes paid or reasonably estimated to be payable in connection therewith (including, without limitation, with respect to the Borrower or any of its Subsidiaries that is treated as a partnership or an entity disregarded as separate from its owner for
federal, state or local income tax purposes, taxes reasonably estimated to be payable by, or with respect to the net income of, the members of such Person with respect to such members’ allocable shares of net income arising from such Asset
Sale), (D) all distributions and other payments required to be made to minority interest holders in any of the Borrower’s Subsidiaries or joint ventures as a result of such Asset Sale, and (E) the deduction of appropriate amounts provided by
the seller as a reserve in accordance with GAAP against any liabilities associated with the assets disposed of in such Asset Sale and retained by the Borrower or any Restricted Subsidiaries after such Asset Sale and, without duplication, any
reserves that the Borrower’s or any Restricted Subsidiary’s Board of Directors determines in good faith should be made in respect of the sale price of such asset or assets for post closing adjustments; provided that in the case of
any reversal of any reserve referred to above, the amount so reserved shall be deemed to be Net Cash Proceeds from an Asset Sale as of the date of such amount is received by the Borrower in cash; 
  
 (b) with respect the incurrence of any Indebtedness or the
issuance or sale of any Equity Interests by the Borrower, any direct or indirect parent company of the Borrower or any of its Subsidiaries, the excess of (i) the sum of the cash and Cash Equivalents received in connection with such incurrence, sale
or issuance over (ii) the underwriting discounts and commissions or other similar payments, and other out-of-pocket costs, fees, commissions, premiums and expenses incurred by the Borrower, such parent company or Subsidiary in connection with such
incurrence, sale or issuance to the extent such amounts were not deducted in determining the amount referred to in clause (i) and any applicable prepayment premiums payable pursuant to Section 2.03(c)(i); and 
  
 (c) with respect to any dividends or distributions received
by the Borrower from any of its Affiliates or Subsidiaries, the excess of (i) the sum of the cash and Cash Equivalents received in connection with such distribution over (ii) the sum of (A) overhead expenses in an aggregate amount not to exceed
$1,000,000 each year, (B) the amount of distributions to members of the Borrower in an amount, with respect to any period beginning after December 31, 1998, not to exceed the Tax Amount with respect to the Borrower for such period (so long as the
Borrower is a limited liability company treated as a partnership or an entity disregarded as separate from its owner for federal, state or local income tax purposes (and prior to any distribution of any Tax Amount, the Borrower delivers a
certificate prepared by the Tax Amount CPA to such effect)), and (C) any applicable prepayment premiums payable pursuant to Section 2.03(c)(ii) . 
  
 “Note” means a Term Note or a PIK Note. 
  

 10 

 “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 the Borrower under the Loan Documents include (a) the obligation to pay principal, interest, charges, expenses, fees, attorneys’ fees and disbursements,
indemnities and other amounts payable by the Borrower under any Loan Document and (b) the obligation of the Borrower to reimburse any amount in respect of any of the foregoing that any Lender, in its sole discretion, may elect to pay or advance on
behalf of the Borrower. 
  
 “OECD” means the Organization for Economic Cooperation and Development. 
  
 “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. 
  
 “Officers’ Certificate” means a certificate signed on behalf of the Borrower by
two Officers of the Borrower, one of whom must be the principal executive officer, the principal financial officer, the treasurer or the principal accounting officer of the Borrower. 
  
 “Other Taxes” has the meaning specified in Section 2.07(b). 
  
 “Parent Company” means (a) any
Person of which the Borrower is a direct or indirect Subsidiary and (b) any two or more Persons acting in concert of which the Borrower would be a direct or indirect Subsidiary if such Persons were a single Person. 
  
 “PBGC” means the Pension Benefit
Guaranty Corporation (or any successor). 
  
 “Permitted Investments” means (a) any Investment in Cash Equivalents, (b) any acquisition of assets solely in exchange for the issuance of Equity Interests (other than Disqualified Stock) of the Borrower, (c)
Investments consisting of Guarantees of Indebtedness of the Restricted Subsidiaries of the Borrower not otherwise prohibited by the Indenture, (d) Investments in Cooperative Certificates made with financings not prohibited by the Indenture, (e)
Investments in prepaid expenses, negotiable instruments held for collection and lease, utility and workers’ compensation, performance and other similar deposits, (f) Hedging Obligations entered into in the ordinary course of business and not
for speculative purposes, (g) any Investment made as a result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance with Section 5.02(e) hereof, (h) the receipt by the Borrower of Investments as
settlement for the release of claims against directory publishers, (i) Investments in Restricted Subsidiaries of the Borrower, and (j) any Investment existing as of the date hereof, and any amendment, modification, extension or renewal thereof to
the extent such amendment, modification, extension or renewal does not require the Borrower or any Restricted Subsidiary to make any additional cash or non-cash payments or provide additional services in connection therewith. 
  

 11 

 “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. 
  
 “PIK Note” means a promissory note
of the Borrower payable to the order of any Lender who elects to receive such note, in substantially the form of Exhibit A-2 hereto, evidencing the indebtedness of the Borrower to such Lender resulting from the capitalization of interest pursuant to
Section 2.04(a), as amended. 
  
 “Plan” means a Single Employer Plan or a Multiple Employer Plan. 
  
 “Principals” means Goldman, Sachs & Co., Madison Dearborn Partners and Providence Equity Partners. 
  
 “Register” has the meaning specified
in Section 8.07(d). 
  
 “Regulation
U” means Regulation U of the Board of Governors of the Federal Reserve System, as in effect from time to time. 
  
 “Related Party” with respect to any Principal means (a) any controlling stockholder, 50% or more owned Subsidiary,
or spouse or immediate family member (in the case of an individual) of such Principal, or (b) any trust, corporation, partnership or other entity, the beneficiaries, stockholders, partner, owners or Persons beneficially holding a controlling
interest of which consist of such Principal and/or such other Persons referred to in the immediately preceding clause (a). 
  
 “Required Lenders” means at any time Lenders owed more than 50% of the then aggregate unpaid principal amount of
the Advances owing to Lenders. 
  
 “Restricted Investment” means an Investment other than a Permitted Investment. 
  
 “Restricted Payments” means any payment or action constituting, individually or in the aggregate, (a) the
declaration or payment of any dividend or any other payment or distribution on account of the Borrower’s Equity Interests (including, without limitation, any payment in connection with any merger or consolidation involving the Borrower) or to a
Parent Company in its capacity as such (other than dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Borrower), (b) the purchase, redemption or other acquisition or retirement for value (including, without
limitation, in connection with any merger or consolidation involving the Borrower) of any Equity Interests of the Borrower from a Parent Company, (c) any payment on or with respect to, or the purchase, redemption, defeasance or other acquisition or
retirement for value of any Indebtedness that is subordinated to the Advances, except a payment of interest or principal at the Stated Maturity thereof, or (d) the making of any Restricted Investment. 
  
 “Restricted Subsidiary” of the
Borrower means (i) Madison River Capital, and (ii) each “Restricted Subsidiary” under the Indenture and any other Person that shall become a “Restricted Subsidiary” under the Indenture after the date hereof until such Restricted
Subsidiary is no longer a “Restricted Subsidiary” under the Indenture. 
  
 “SEC” means the Securities and Exchange Commission. 
  

 12 

 “Securities Act” means the Securities Act of 1933, as amended.

  
 “Senior Notes” means
Madison River Capital’s 13.25% Senior Notes due 2010 issued under the Indenture and outstanding on the date hereof. 
  
 “Significant Subsidiary” means any Restricted Subsidiary that would be a “significant subsidiary” as
defined in Article 1, Rule 1-02 of Regulation S-X, promulgated pursuant to the Securities Act, as such Regulation is in effect on the date hereof. 
  
 “Single Employer Plan” means a single employer plan, as defined in Section 4001(a)(15) of ERISA, that (a) is
maintained for employees of the Borrower or any ERISA Affiliate and no Person other than the Borrower and the ERISA Affiliates or (b) was so maintained and in respect of which the Borrower or any ERISA Affiliate could have liability under Section
4069 of ERISA in the event such plan has been or were to be terminated. 
  
 “Solvent” and “Solvency” mean, with respect to any Person on a particular date, that on such date (a) the fair value of the property of such Person is greater than the
total amount of liabilities, including, without limitation, contingent liabilities, of such Person, (b) the present fair salable value of the assets of such Person is not less than the amount that will be required to pay the probable liability of
such Person on its debts as they become absolute and matured, (c) such Person does not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay such debts and liabilities as they mature and
(d) such Person is not engaged in business or a transaction, and is not about to engage in business or a transaction, for which such Person’s property would constitute an unreasonably small capital. The amount of contingent liabilities at any
time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. In determining the Solvency of any
Person hereunder, the value to such Person of its Investments in its Subsidiaries, and the assets and financial resources of such Subsidiaries, shall be taken into consideration. 
  
 “Stated Maturity” means, with respect to any installment of interest or principal on
any series of Indebtedness, the date on which such payment of interest or principal was scheduled to be paid in the original documentation governing such Indebtedness, and shall not include any contingent obligations to repay, redeem or repurchase
any such interest or principal prior to the date originally scheduled for the payment thereof. 
  
 “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 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. 
  
 “Surviving Debt” means indebtedness
of the Borrower outstanding immediately before and after giving effect to the initial Borrowing. 
  
 “Tax Amount” means for any taxable period an amount equal to the product of (a) the Taxable Income of the Borrower
as determined by the Tax Amount CPA and (b) the Tax 

  

 13 

 
Percentage; provided, however, that in determining the Tax Amount, the effect thereon of any net operating loss carryforwards that would have
arisen if the Borrower were a corporation shall be taken into account. 
  
 “Tax Amount CPA” means a nationally recognized certified public accounting firm selected by the Borrower. 
  
 “Tax Percentage” means, for a particular taxable year, the highest effective
marginal combined rate of federal, state and local income tax, imposed on an individual or corporate taxpayer, whichever rate is higher, as certified by the Tax Amount CPA in a certificate filed with the Trustee. The rate of “state income
tax” to be taken into account for purposes of determining the Tax Percentage for a particular taxable year shall be deemed to be the highest New York State income tax rate imposed on individuals or corporations for such year, whichever rate is
higher. The rate of “local income tax” to be taken into account for purposes of determining the Tax Percentage for a particular taxable year shall be deemed to be the highest New York City income tax rate imposed on individuals or
corporations for such year, whichever rate is higher. 
  
 “Taxable Income” means, with respect to the Borrower for any period, the hypothetical taxable income of the Borrower, if any, for such period for federal income tax purposes computed on the hypothetical assumption
that the Borrower is a corporation as reasonably determined by the Tax Amount CPA. 
  
 “Taxes” means all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or
other charges imposed, levied, collected, withheld or assessed by any Governmental Authority, including any interest, additions to tax, penalties or other similar liabilities applicable thereto. 
  
 “Telecommunications Business” means
the development, ownership or operation of one or more telephone, telecommunications or information systems or the provision of telephony, telecommunications or information services (including, without limitation, any voice, video transmission, data
or Internet services) and any related, ancillary or complementary business; provided that the determination of what constitutes a Telecommunications Business shall be made in good faith by the Board of Directors of the Borrower. 

 
 “Term Note” means a promissory
note of the Borrower payable to the order of any Lender who elects to receive such note and who is a transferee of the Initial Lender, in substantially the form of Exhibit A-1 hereto, evidencing the indebtedness of the Borrower to such Lender
resulting from the Advance made by such Lender, as amended. 
  
 “Voting Interests” of any Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors of such Person. 

 
 “Weighted Average Life to
Maturity” means, when applied to any Indebtedness at any date, the number of years obtained by dividing (a) the sum of the products obtained by multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity
or other required payments of principal, including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment, by (b) the then
outstanding principal amount of such Indebtedness. 
  

 14 

 “Welfare Plan” means a welfare plan, as defined in Section 3(1)
of ERISA, that is maintained for employees of the Borrower or in respect of which the Borrower 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 Loan 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 Loan 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. 
  
 SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with generally accepted
accounting principles in the United States of America as in effect from time to time (“GAAP”). 
  
 ARTICLE II 
  
 AMOUNTS AND TERMS OF THE ADVANCES 
  
 SECTION 2.01. The Advances. The Initial Lender agrees, on the terms and conditions hereinafter set forth, to make a single advance (together with interest paid in kind and evidenced by a separate “PIK
Note” pursuant to Section 2.10(a), each, an “Advance”) to the Borrower on the Closing Date in the amount of $20,800,000. Amounts borrowed under this Section 2.01 and repaid or prepaid may not be reborrowed. 

 
 SECTION 2.02. Repayment of Advances. The Borrower shall repay to
the Administrative Agent for the ratable account of the Lenders the aggregate outstanding principal amount of the Advances on the Maturity Date (which amounts shall be reduced as a result of the application of prepayments in accordance with Section
2.03). 
  
 SECTION 2.03. Prepayments. (a) Optional.
The Borrower may, upon at least five Business Days’ notice to the Administrative Agent stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given the Borrower shall (provided that any such
notice regarding a prepayment of Advances may be conditioned on the closing of any financing transaction and the Borrower shall not be required to make such prepayment if such condition is not satisfied), prepay the outstanding aggregate principal
amount of the Advances in whole or ratably in part, together with (i) accrued interest to the date of such prepayment on the aggregate principal amount prepaid and (ii) any prepayment premium payable pursuant to subsection (c) of this Section 2.03;
provided, however, that each partial prepayment shall be in an aggregate principal amount of $1,000,000 or an integral multiple of $1,000,000 in excess thereof. 
  
 (b) Mandatory. The Borrower shall, within two Business Days of the date of receipt of any Net Cash
Proceeds by the Borrower, any Parent Company or any Subsidiary of the Borrower, as applicable, prepay (without duplication) an aggregate principal amount of the Advances in an amount equal to (A) 100% of such Net Cash Proceeds from dividends and
distributions received by the 

  

 15 

 
Borrower or any Parent Company from any of its Affiliates or Subsidiaries, (B) 100% of such Net Cash Proceeds received from Asset Sales (other than Excluded
Asset Sales) by the Borrower or any of its Subsidiaries and (C) 100% of such Net Cash Proceeds received by the Borrower, any Parent Company or any of its Subsidiaries from any incurrence, sale or issuance of Indebtedness or Equity Interests
(including capital contributions but, in each case, other than Excluded Issuances); provided, however, that no mandatory prepayment shall be required under this Section 2.03(b) if and to the extent such prepayment, or the transfer of
Net Cash Proceeds to the Borrower, is prohibited by or violative of the Indenture (without giving effect to any election permitted under the Indenture to make Restricted Payments other than by way of cash dividends to the Borrower), and
provided further, that no prepayment shall be required to be made pursuant to this Section 2.03(b)(i) until such time as the aggregate amount of such Net Cash Proceeds not previously applied to such prepayment exceeds $1,000,000.

  
 (i) All prepayments under this subsection (b)
shall be made together with (A) accrued interest to the date of such prepayment on the principal amount prepaid, (B) any amounts owing pursuant to Section 8.04(c) and (C) any prepayment premium payable pursuant to subsection (c) of this Section
2.03. 
  
 (c) Prepayment Premiums. (i) In
the event of any voluntary prepayment under subsection (a) of this Section 2.03 or any mandatory prepayment under clause (C) of subsection (b)(i) of this Section 2.03, the Borrower shall pay a premium on the principal amount prepaid as follows:

  

				
	 Date of Prepayment

	  	Premium

	 
	 On or prior to June 30, 2005
	  	0	%
		
	 From July 1, 2005 to December 31, 2005
	  	6.50	%
		
	 From January 1, 2006 to December 31, 2006
	  	5.25	%
		
	 From January 1, 2007 to December 31, 2007
	  	4.00	%
		
	 From January 1, 2008 to December 31, 2008
	  	2.75	%
		
	 From January 1, 2009 to December 31, 2009
	  	1.50	%
		
	 From January 1, 2010 and thereafter
	  	0	%

  
 (ii)
In the event of any mandatory prepayment under clause (A) of subsection (b)(i) of this Section 2.03, the Borrower shall pay a prepayment premium of 2.0% of the principal amount prepaid, other than if such prepayment is from the proceeds of a
dividend or distribution to the Borrower of the proceeds of (x) an event under clause (C) of subsection (b)(i) of this Section 2.03, in which case the prepayment premium under clause (i) of this subsection (c) shall apply or (y) an event under
clause (B) of subsection (b)(i) of this Section 2.03, in which case no prepayment premium shall be payable. 
  
 SECTION 2.04. Interest. Scheduled Interest. (i) The Borrower shall pay interest on the unpaid principal amount of each Advance owing to each
Lender from the date of such Advance until such principal amount shall be paid in full, at a fixed rate equal to 8.4257% per annum; provided that in the event the Advances are not repaid in full on or before June 30, 2005, such interest rate
shall be increased, retroactive to the Closing Date, to 13.00% per annum and the unpaid amount of such increased interest, together with an amount equal to the interest that would have accrued thereon at such rate, shall, if not 

  

 16 

 
paid in cash on June 30, 2005, be capitalized and added to the principal amount of the Advances on such date and shall thereafter bear interest at 13.00% per
annum. Interest shall be payable in arrears semiannually on June 15 and December 15 of each year and on the date the Advances shall be paid in full. 
  
 (ii) Notwithstanding anything to the contrary contained herein, (i) the Borrower shall have the option, at any time prior to the Maturity
Date, to pay interest in cash or cause such interest to be capitalized and added to the principal of each Advance, (ii) the option to cause to be capitalized shall automatically be deemed to be elected unless the Borrower gives notice as specified
below, and (iii) no such election shall constitute a Default or Event of Default under Section 8.01(a). Each amount of interest so capitalized shall be considered part of, and added to, the principal amount of the corresponding Advance and shall
bear interest as provided in this subsection (a) from the date such interest is capitalized until such Advance is paid in full. If it intends to pay interest in cash on any scheduled interest payment date, the Borrower shall notify the
Administrative Agent at least five Business Days before such scheduled interest payment date and the Administrative Agent shall promptly notify the Lenders thereof. 
  
 (iii) Each Lender other than the Initial Lender shall have the unconditional right to convert the Advance of
such Lender into senior paid in kind notes (the “Permanent Notes”) at its sole discretion; the Permanent Notes shall have substantially the same terms as the Advances. The Permanent Notes shall include any additional notes
issued in lieu of cash interest payments on the Permanent Notes (the “Permanent PIK Notes”). Each Lender may elect such conversion by giving irrevocable written notice of such election to the Borrower and the Administrative
Agent and, if appointed, the trustee for the Permanent Notes specifying the principal amount of its Advance to be converted (which shall be at least $1,000,000 and integral multiples of $1,000 in excess thereof) and the name of the proposed
registered holder and, subject to the terms of the indenture for the Permanent Notes, the amount of each Permanent Note requested (each such notice, a “Conversion Notice”). Advances converted for Permanent Notes pursuant to
this Section 2.03(a)(iii) shall be deemed repaid and canceled and the Permanent Notes so issued shall be governed by and construed in accordance with the provisions of the Permanent Notes. 
  
 (b) Default Interest. Upon the occurrence and during
the continuance of an Event of Default, the Administrative Agent may, and upon the request of the Required Lenders shall, require that the Borrower pay interest (“Default Interest”) on (i) the unpaid principal amount of each
Advance owing to each Lender, payable in arrears on the dates referred to in Section 2.04(a), as applicable, 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 Advance pursuant to Section
2.04(a), and (ii) to the fullest extent permitted by applicable law, the amount of any interest, fee or other amount payable under this Agreement or any other Loan Document to any Agent or any Lender 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 annum equal at all times to 2.0% per annum above the rate per annum required to be paid on the
Advances; provided, however, that following the acceleration of the Advances, or the giving of notice by the Agent to accelerate the Advances, pursuant to Section 6.01, Default Interest shall accrue and be payable hereunder whether or
not previously required by the Administrative Agent. 
  
 SECTION
2.05. Fees. Commitment Fee. The Borrower shall pay a commitment fee in the amount specified in the Commitment Letter, such amount to be deducted from the proceeds of the initial Borrowing. 
  
 (a) Agents’ Fees. The Borrower shall pay to each
Agent for its own account such fees as may from time to time be agreed between the Borrower and such Agent, including, without 

  

 17 

 
limitation, a non refundable annual fee to the Administrative Agent in the amount of $10,000, payable on the Closing Date and each anniversary of the Closing
Date after the date hereof. 
  
 SECTION 2.06. Payments and
Computations. The Borrower shall make each payment hereunder and under the Notes, irrespective of any right of counterclaim or set-off, not later than 11:00 A.M. (New York City time) on the day when due in U.S. dollars to the Administrative
Agent at the Administrative Agent’s Account in same day funds, and, solely for the purposes of the calculation and accrual of interest and fees pursuant to the provisions of the Loan Documents, with payments being received by the Administrative
Agent after such time being deemed to have been received on the next succeeding Business Day. The Administrative Agent will promptly thereafter cause like funds to be distributed (i) if such payment by the Borrower is in respect of principal,
interest, commitment fees or any other Obligation under the Loan Documents then payable hereunder and under the Notes to more than one Lender, to such Lenders for the account of their respective Lending Offices ratably in accordance with the amounts
of such respective Obligations then payable to such Lenders and (ii) if such payment by the Borrower is in respect of any Obligation then payable hereunder to one Lender, to such Lender for the account of its Lending Office, in each case to be
applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and recording of the information contained therein in the Register pursuant to Section 8.07(d), from and after the effective date of such
Assignment and Acceptance, the Administrative Agent shall make all payments hereunder and under the Notes in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall make all
appropriate adjustments in such payments for periods prior to such effective date directly between themselves. 
  
 (a) All computations of interest shall be made by the Administrative 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. 
  
 (b) 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
due on and 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. 
  
 (c) Unless the Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to any
Lender hereunder that the Borrower will not make such payment in full, the Administrative Agent may assume that the Borrower has made such payment in full to the Administrative Agent on such date and the Administrative Agent may, in reliance upon
such assumption, cause to be distributed to each such Lender on such due date an amount equal to the amount then due such Lender. If and to the extent the Borrower shall not have so made such payment in full to the Administrative Agent, each such
Lender shall repay to the Administrative Agent forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such
amount to the Administrative Agent, at the Federal Funds Rate. 
  
 SECTION 2.07. Taxes. Any and all payments by the Borrower to or for the account of any Lender or any Agent hereunder or under the Notes or any other Loan Document shall be made, in accordance with Section 2.06 or the applicable
provisions of such other Loan Document, if any, free and clear of and without deduction for any and all Taxes, excluding, in the case of each Lender and each Agent, taxes that are imposed on its overall net income or overall gross receipts by
the United States and taxes that are imposed on its overall net income or overall gross receipts (and franchise taxes imposed in lieu thereof) by the state or foreign jurisdiction under the laws of which such Lender or such Agent, as the case may
be, is organized or any political subdivision thereof, any branch profits tax imposed by the United States, and, in the case of each Lender, taxes that are imposed on its overall net income or overall 

  

 18 

 
gross receipts (and franchise taxes imposed in lieu thereof) by the state or foreign jurisdiction of such Lender’s 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 “Indemnified Taxes”).
If the Borrower shall be required by law to deduct any Indemnified Taxes from or in respect of any sum payable hereunder or under any Note or any other Loan Document to any Lender or any Agent, (i) the sum payable by the Borrower shall be increased
as may be necessary so that after the Borrower and the Administrative Agent have made all required deductions (including deductions applicable to additional sums payable under this Section 2.07) such Lender or such Agent, as the case may be,
receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower shall make all such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable law. 
  
 (a) In addition, the Borrower shall pay any present or future stamp, documentary, excise, property, intangible, mortgage recording or similar Taxes that arise from any payment made by the Borrower hereunder or under any Notes or any other
Loan Documents or from the execution, delivery or registration of, performance under, or otherwise with respect to, this Agreement, the Notes or the other Loan Documents (hereinafter referred to as “Other Taxes”). 

 
 (b) The Borrower shall indemnify each Lender and each
Agent for and hold them harmless against the full amount of Indemnified Taxes and Other Taxes (including Indemnified Taxes and Other Taxes imposed or asserted on or attributable to amounts payable under this Section 2.07), imposed on or paid by such
Lender or such 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 Lender or such
Agent (as the case may be) makes written demand therefor. 
  
 (c) Within 30 days after the date of any payment of Indemnified Taxes, the Borrower shall furnish to the Administrative Agent, at its address referred to in Section 8.02, the original or a certified copy of a receipt
evidencing such payment, to the extent such a receipt is issued therefor, or other written proof of payment thereof that is reasonably satisfactory to the Administrative Agent. In the case of any payment hereunder or under the Notes or the other
Loan Documents by or on behalf of the Borrower through an account or branch outside the United States or by or on behalf of the Borrower by a payor that is not a United States person, if the Borrower determines that no Taxes are payable in respect
thereof, the Borrower shall furnish, or shall cause such payor to furnish, to the Administrative Agent, at such address, an opinion of counsel acceptable to the Administrative 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. 
  
 (d) Each Lender 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 the Initial Lender and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in the case of each
other Lender, and from time to time thereafter as reasonably requested in writing by the Borrower (but only so long thereafter as such Lender remains lawfully able to do so), provide each of the Administrative Agent and the Borrower with two
properly completed and executed original Internal Revenue Service Forms W-8BEN or W-8ECI or (in the case of a Lender that has certified in writing to the Administrative Agent that it is not (i) a “bank” as defined in Section 881(c)(3)(A)
of the Internal Revenue Code), (ii) a 10-percent shareholder (within the meaning of Section 871(h)(3)(B) of the Internal Revenue Code) of the Borrower or (iii) a controlled foreign corporation related to the Borrower (within the meaning of Section
864(d)(4) of the Internal Revenue Code), Internal Revenue Service 

  

 19 

 
Form W- 8BEN, as appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying that such Lender is exempt from or
entitled to a reduced rate of United States withholding tax on payments pursuant to this Agreement or the Notes or any other Loan Document. Each Lender further undertakes to provide to each of the Administrative Agent and the Borrower two additional
copies of any such form on or before the date that such form expires or becomes obsolete or after the occurrence of any event requiring a change in the most recent form delivered by such Lender. If the forms provided by a Lender at the time such
Lender 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 Lender 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 Lender becomes a party to this Agreement, the Lender 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 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 Lender
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-8BEN or W-8ECI, that the applicable Lender reasonably considers to be confidential, such Lender shall give notice thereof to the Borrower and shall not be obligated to include in such form or document such confidential information.
Any Lender that is a “United States person” (as specified in Section 7701 of the Internal Revenue Code) shall, upon request of the Borrower, deliver to the Borrower two properly completed and duly executed copies of Internal Revenue
Service Form W-9 (or any subsequent versions thereof or successors thereto). 
  
 (e) For any period with respect to which a Lender has failed to satisfy the provisions of subsection (e) above (other than if such failure is due to a change in law, or in the interpretation or application
thereof, occurring after the date on which a form, certificate or other document originally was required to be provided or if such form, certificate or other document otherwise is not required under subsection (e) above, such Lender shall not be
entitled to indemnification under this Section 2.07 with respect to Indemnified Taxes imposed by the United States by reason of such failure; provided, however, that should a Lender become subject to Indemnified Taxes because of its
failure to deliver a form, certificate or other document required hereunder, the Borrower shall take such steps (at the expense of the Lender) as such Lender shall reasonably request to assist such Lender to recover such Indemnified Taxes.

  
 (f) If the Administrative Agent or any Lender
determines in its sole discretion that it has received a refund of any Indemnified Taxes in respect of which the Borrower has paid additional amounts to such Agent or Lender pursuant to this Section 2.07, such Agent or Lender, as the case may be,
shall pay over such refund to the Borrower (but only to the extent of indemnity payments made, or additional amounts paid, to such Agent or Lender under this Section 2.07 with respect to the Indemnified Taxes giving rise to such refund), net of all
out-of-pocket expenses of such Agent or Lender (including any Indemnified Taxes imposed with respect to such refund) as is determined by such Agent or Lender in its sole discretion, and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund); provided that the Borrower agrees, upon the request of such Agent or Lender, as the case may be, to repay as soon as reasonably practicable the amount paid over to such Agent or Lender
(plus any penalties, interest or other charges imposed by the relevant Governmental Authority) to such Agent or Lender in the event such Agent or Lender, as the case may be, is required to repay such refund to such Governmental Authority. Nothing in
Section 2.07(g) shall be construed to require the Administrative Agent or any Lender to make available its Tax returns (or any other information relating to its Taxes which it deems confidential) to the Borrower. 
  

 20 

 (g) Any Lender claiming increased payments pursuant to Section 2.07(a) as a result of any
applicable Indemnified Taxes shall use its reasonable efforts (to the extent not inconsistent with such Lender’s internal policies and applicable legal and regulatory restrictions) to change the jurisdiction of its applicable Lending Office or
any other office from which such Lender makes or maintains any extension of credit under this Agreement or any other Loan Documents, if, in the judgment of such Lender, the making of such change (i) would avoid the need for or reduce the amount of
any such increased payment and (ii) would not subject such Lender to any unreimbursed or unindemnified cost or expense and would not otherwise be disadvantageous to such Lender in any material respect. The Borrower hereby agrees to pay all costs and
expenses incurred by any Lender in connection with any such change. 
  
 SECTION 2.08. Sharing of Payments, Etc. If any Lender 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 8.07) (a) on account of Obligations due and payable to such Lender hereunder and under the Notes and the other Loan Documents at such time in excess of its ratable share of payments on account of the Obligations due and payable to all
Lenders hereunder and under the Notes at such time obtained by all the Lenders at such time or (b) on account of Obligations owing (but not due and payable) to such Lender hereunder and under the Notes and the other Loan Documents at such time in
excess of its ratable share of payments on account of the Obligations owing (but not due and payable) to all Lenders hereunder and under the Notes at such time obtained by all of the Lenders at such time, such Lender shall forthwith purchase from
the other Lenders such interests or participating interests in the Obligations due and payable or owing to them under the Loan Documents, as the case may be, as shall be necessary to cause such purchasing Lender 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 Lender, such purchase from each other Lender shall be rescinded and such other Lender shall repay to the
purchasing Lender the purchase price to the extent of such Lender’s ratable share of such recovery together with an amount equal to such Lender’s ratable share of any interest or other amount paid or payable by the purchasing Lender in
respect of the total amount so recovered. 
  
 SECTION 2.09. Use
of Proceeds. The proceeds of the initial Advance shall be available (and the Borrower agrees that it shall use such proceeds) solely to repay the Bryant Notes and pay related costs, fees and expenses. 
  
 SECTION 2.10. Evidence of Debt. Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Advance owing to such Lender from time to time, including the amounts of principal and interest payable and paid
to such Lender from time to time hereunder. The Borrower agrees that upon notice by any Lender to the Borrower (with a copy of such notice to the Administrative Agent) to the effect that a promissory note or other evidence of indebtedness is
required or appropriate in order for such Lender to evidence (whether for purposes of pledge, enforcement or otherwise) the Advances owing to such Lender, the Borrower shall promptly execute and deliver to such Lender, with a copy to the
Administrative Agent, a Note in substantially the form of Exhibit A-1 hereto, payable to the order of such Lender in a principal amount equal to the Advance made by such Lender. On each scheduled interest payment date hereunder prior to the Maturity
Date, to the extent requested by any Lender, the Borrower shall execute and deliver to such Lender a PIK Note dated such interest payment date and payable to the order of such Lender in a principal amount equal to the interest owing to such Lender
on such interest payment date to the extent the Borrower has not elected to pay such interest in cash pursuant to Section 2.04(a). A PIK Note shall bear interest from the date of its issuance at the same rate borne by all Notes at the date of
issuance and from time to time thereafter. All references to Notes in the Loan Documents shall mean Notes, if any, to the extent issued hereunder. 
  

 21 

 (a) The Register maintained by the Administrative Agent pursuant to Section 8.07(d) shall
include a control account, and a subsidiary account for each Lender, in which accounts (taken together) shall be recorded (i) the date and amount of each Borrowing made hereunder, (ii) the terms of each Assignment and Acceptance delivered to and
accepted by it, (iii) the amount of any principal or interest due and payable or to become due and payable from the Borrower to each Lender hereunder, and (iv) the amount of any sum received by the Administrative Agent from the Borrower hereunder
and each Lender’s share thereof. 
  
 (b)
Entries made in good faith by the Administrative Agent in the Register pursuant to subsection (b) above, and by each Lender in its account or accounts pursuant to subsection (a) above, shall be prima facie evidence of the amount of principal
and interest due and payable or to become due and payable from the Borrower to, in the case of the Register, each Lender and, in the case of such account or accounts, such Lender, under this Agreement, absent manifest error; provided,
however, that the failure of the Administrative Agent or such Lender to make an entry, or any finding that an entry is incorrect, in the Register or such account or accounts shall not limit or otherwise affect the obligations of the Borrower
under this Agreement. 
  
 ARTICLE III 
  
 CONDITIONS OF LENDING 
  
 SECTION 3.07. Conditions Precedent to the Initial Advance. The
obligation of the Initial Lender to make the initial Advance hereunder is subject to the satisfaction or waiver of the following conditions precedent before or concurrently with the making of such Advance (and this Agreement shall become effective
on and as of the first date (the “Closing Date”) on which such conditions precedent have been satisfied or waived): 
  
 (a) The Administrative Agent shall have received on or before the Closing Date the following, each dated such day (unless otherwise
specified), in form and substance reasonably satisfactory to the Administrative Agent (unless otherwise specified): 
  
 (i) Certified copies of the resolutions of the Board of Directors of the Borrower approving the Borrowing and each Loan Document, and of
all documents evidencing other necessary corporate action and governmental and other third party approvals and consents, if any, with respect to the Borrowing and each Loan Document. 
  
 (ii) A copy of a certificate of the Secretary of State of the jurisdiction of formation of the Borrower,
dated reasonably near the Closing Date, certifying (A) as to a true and correct copy of the certificate of formation of the Borrower and each amendment thereto on file in such Secretary’s office and (B) that (1) such amendments are the only
amendments to the Borrower’s certificate of formation on file in such Secretary’s office, (2) the Borrower has paid all annual taxes to the date of such certificate and (3) the Borrower is duly formed and in good standing or presently
existing under the laws of the State of the jurisdiction of its formation. 
  
 (iii) A certificate of the Borrower, signed on behalf of the Borrower by its Chief Financial Officer 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 Closing Date), certifying as to (A) the absence of any amendments to the certificate of formation of the Borrower since the date of the Secretary of State’s certificate referred to in 

  

 22 

 
Section 3.01(a)(ii), (B) a true and correct copy of the limited liability company agreement or other equivalent operating agreement of the Borrower as in
effect on the date on which the resolutions referred to in Section 3.01(a)(i) were adopted and on the Closing Date, (C) the truth of the representations and warranties contained in the Loan Documents as though made on and as of the date of the
Closing Date and (D) the absence of any event occurring and continuing, or resulting from the Closing Date, that constitutes a Default. 
  
 (iv) A certificate of the Secretary or an Assistant Secretary of the Borrower certifying the names and true signatures of the officers of
the Borrower authorized to sign each Loan Document and the other documents to be delivered hereunder and thereunder. 
  
 (v) A certificate in substantially the form of Exhibit C, attesting to the Solvency of the Borrower before and after giving effect to the
transactions contemplated hereunder, from its Chief Financial Officer. 
  
 (vi) A “pay-off” letter reasonably satisfactory to the Administrative Agent with respect to the repayment in full of the Bryant Notes. 
  
 (vii) A favorable opinion of Skadden, Arps, Slate, Meagher & Flom LLP, counsel for the Borrower and of
Matt L. Springer, in-house counsel to the Borrower, each in substantially the form of Exhibit D-1 and D-2 hereto, respectively. 
  
 (b) The Borrower shall have complied with all of the terms of the Engagement Letter to be complied with on or before the Closing Date.

  
 (c) There shall exist no action, suit,
investigation, or proceeding affecting the Borrower or any of its Subsidiaries pending or, to the knowledge of the Borrower, threatened before any arbitrator or Governmental Authority 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) The Borrower shall have paid all accrued and invoiced fees of the Agents and the Lenders and all accrued expenses of the Agents
(including the reasonable fees and expenses of counsel to the Administrative Agent), such accrued and invoiced expenses not to exceed $100,000 in the aggregate and to be deducted from the proceeds of the initial Borrowing. 
  
 ARTICLE IV 
  
 REPRESENTATIONS AND WARRANTIES 
  
 SECTION 4.01. Representations and Warranties of the Borrower. The
Borrower represents and warrants, on and as of the date hereof, as follows: 
  
 (a) The Borrower and each of its Subsidiaries (i) is a legal entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, (ii) and has all requisite
organizational power or corporate power, as the case may be, and authority (including, without limitation, all Governmental Authorizations) to own or lease and operate its properties and to carry on its business as now conducted and as proposed to
be conducted, except where the failure to do so could not reasonably be expected to have a Material Adverse Effect. All of the outstanding Equity Interests in the Borrower have been validly issued, are fully paid and non-assessable and are
registered in the names of the persons specified on Schedule 4.01(a) hereto. 
  

 23 

 (b) Set forth on Schedule 4.01(b) hereto is a complete and accurate list of all
Subsidiaries of the Borrower, showing (as to each such Subsidiary) the jurisdiction of its organization, the number of shares of each class of its Equity Interests authorized, and the number outstanding, the percentage of each such class of its
Equity Interests owned (directly or indirectly) by the Borrower, the number of shares covered by all outstanding options, warrants, rights of conversion or purchase and similar rights and whether such Subsidiary is a “Restricted
Subsidiary” or an “Unrestricted Subsidiary” under the Indenture. All of the outstanding Equity Interests in the Borrower’s Subsidiaries have been validly issued and, to the extent such concepts are applicable to the relevant
Equity Interests, are fully paid and non-assessable and are owned by the Borrower or one or more of its Subsidiaries free and clear of all Liens, other than Liens permitted under Section 5.02 (a) hereof or under the Indenture. 
  
 (c) The execution, delivery and performance by the Borrower
of each Loan Document, and the consummation of the transactions contemplated hereunder, are within the Borrower’s powers, have been duly authorized by all necessary organizational action, and do not (i) contravene the Borrower’s
certificate of formation, limited liability company agreement or other organizational documents, (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, which violation could reasonably be expected to have a Material Adverse Effect (iii) conflict with or result in the breach of, or constitute a default or require any payment to be made
under, any contract, loan agreement, indenture, mortgage, deed of trust, lease or other instrument binding on or affecting the Borrower or any of its properties, which conflict, breach or default could reasonably be expected to have a Material
Adverse Effect or (iv) result in or require the creation or imposition of any Lien upon or with respect to any of the properties of the Borrower or any of its Subsidiaries. Neither the Borrower nor 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
reasonably be expected to have a Material Adverse Effect. 
  
 (d) No Governmental Authorization, and no notice to or filing with, any Governmental Authority is required for (i) the due execution, delivery or performance by the Borrower of any Loan Document, or for the
consummation of the transactions contemplated hereunder, or (ii) the exercise by any Agent or any Lender of its rights under the Loan Documents. 
  
 (e) This Agreement has been duly executed and delivered by the Borrower. This Agreement is the legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at law. 
  
 (f) There is no action, suit, investigation, litigation or proceeding affecting the Borrower or any of its Subsidiaries, including any Environmental Action, pending or, to the Borrower’s knowledge, threatened
before any Governmental Authority or arbitrator that could reasonably be expected to have a Material Adverse Effect (other than the Disclosed Litigation). 
  

 24 

 (g) The Consolidated balance sheet of the Borrower and its Subsidiaries as at December
31, 2003, and the related Consolidated statement of income and Consolidated statement of cash flows of the Borrower and its Subsidiaries for the fiscal year then ended, accompanied by an opinion of Ernst & Young, independent public accountants,
and the Consolidated balance sheet of the Borrower and its Subsidiaries as at September 30, 2004, and the related Consolidated statement of income and Consolidated statement of cash flows of the Borrower and its Subsidiaries for the nine months then
ended, copies of which have been furnished to each Lender, fairly present, subject, in the case of said balance sheet as at September 30, 2004, and said statements of income and cash flows for the nine months then ended, to year-end audit
adjustments and the absence of footnotes, the Consolidated financial condition of the Borrower and its Subsidiaries as at such dates and the Consolidated results of operations of the Borrower and its Subsidiaries for the period ended on such date,
all in accordance with GAAP, and during the period from December 31, 2003 to the date hereof, there has been no Material Adverse Change. 
  
 (h) The Consolidated forecasted balance sheet, statements of income and statement of cash flows of the Borrower and its Subsidiaries and
all other projections and other forward looking information concerning the Borrower and its Subsidiaries that have been made available by or on behalf of the Borrower to any Agent or any Lender in connection with the Facility (collectively, the
“Projections”) have been prepared in good faith based upon assumptions believed by the Borrower to be reasonable at the time made (it being understood that no assurance has been or will be given that the Projections will be achieved).

  
 (i) All information and data (excluding the
Projections) that have been made available by the Borrower or any of its Subsidiaries, representatives or advisors to any Agent or any Lender in connection with the Facility, taken as a whole, was, as of the date furnished, complete and correct in
all material respects (after giving effect to all updates thereto delivered to the Agents and the Lenders) and, as of the date furnished, did not, taken as a whole, contain any untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements contained therein not materially misleading, in light of the circumstances under which such statements are made and after giving effect to all updates thereto delivered to the Agents and the Lenders.

  
 (j) The Borrower is not engaged in the
business of extending credit for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Advance will 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. 
  
 (k) The Borrower is not an
“investment company,” subject to regulation under, and as defined in, the Investment Company Act of 1940, as amended. Borrower is not a “holding company” subject to regulation under, and as defined in, the Public Utility Holding
Company Act of 1935, as amended. 
  
 (l) The
Borrower is Solvent. 
  
 (m) No ERISA Event has
occurred or is expected to occur with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. 
  
 (i) Neither the Borrower nor any ERISA Affiliate has incurred or is expected to incur any Withdrawal Liability to any Multiemployer Plan
that could reasonably be expected to have a Material Adverse Effect. 
  

 25 

 (ii) Neither the Borrower 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 is expected by the Borrower or any ERISA Affiliate to be in reorganization or to be
terminated, within the meaning of Title IV of ERISA which reorganization or termination could reasonably be expected to have a Material Adverse Effect. 
  
 (n) The operations and properties of the Borrower and each of its Subsidiaries comply in all material respects with all applicable
Environmental Laws and Environmental Permits, all past non-compliance with such Environmental Laws and Environmental Permits has been resolved without ongoing material obligations or costs, and no circumstances exist that could reasonably be
expected to (A) form the basis of an Environmental Action against the Borrower or any of its Subsidiaries or any of their properties that could reasonably be expected to have a Material Adverse Effect or (B) cause any such property to be subject to
any material restrictions on ownership, occupancy, use or transferability under any Environmental Law. 
  
 (i) None of the properties currently or formerly owned or operated by the Borrower or any of its Subsidiaries is listed or proposed for
listing on the NPL or on the CERCLIS or any analogous state or local list or is adjacent to any such property; there are no and never have been 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 on any property currently owned or operated by the Borrower or any of its Subsidiaries or, to the best of its knowledge, on any property formerly owned or
operated by the Borrower or any of its Subsidiaries; there is no asbestos or asbestos-containing material on any property currently owned or operated by the Borrower or any of its Subsidiaries; and Hazardous Materials have not been released,
discharged or disposed of on any property currently or formerly owned or operated by the Borrower or any of its Subsidiaries. 
  
 (ii) Neither the Borrower nor any of its Subsidiaries is undertaking, and has not 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; and all Hazardous Materials generated, used, treated, handled or stored at, or transported to or from, any property currently or formerly
owned or operated by the Borrower or any of its Subsidiaries have been disposed of in a manner not reasonably expected to result in material liability to the Borrower or any of its Subsidiaries. 
  
 (o) Neither the Borrower nor any of its Subsidiaries is
party to any tax sharing agreement other than the tax sharing agreements listed on Schedule 4.01(o). 
  
 (i) The Borrower and each of its Subsidiaries has filed, has caused to be filed or has been included in all Federal, material state,
material local and material foreign tax returns required to be filed and has paid all taxes shown thereon to be due, together with applicable interest and penalties. 
  
 (p) Neither the business nor the properties of the Borrower or any of its Subsidiaries are 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 reasonably be expected to have a
Material Adverse Effect. 
  

 26 

 (q) Set forth on Schedule 4.01(q) hereto is a complete and accurate list of all Existing
Debt and Surviving Debt, showing as of the date hereof the obligor and the principal amount outstanding thereunder. 
  
 ARTICLE V 
  
 COVENANTS OF THE BORROWER 
  
 SECTION 5.01.
Affirmative Covenants. So long as any Advance or any other Obligation of the Borrower under any Loan Document shall remain unpaid, the Borrower will: 
  
 (a) Compliance with Laws, Etc. Comply in all material respects, with all applicable laws, rules, regulations and orders, such
compliance to include, without limitation, compliance with ERISA and the Racketeer Influenced and Corrupt Organizations Chapter of the Organized Crime Control Act of 1970, except, in each case, where the failure to so comply could not reasonably be
expected to have a Material Adverse Effect. 
  
 (b) Payment of Taxes, Etc. Pay, prior to delinquency, all material taxes, assessments, and governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is
not adverse in any material respect to the Lenders. 
  
 (c) Performance and Compliance with Indenture. Cause Madison River Capital to perform and comply with each of the covenants set forth in Articles 4 and 5 of the Indenture. 
  
 (d) Madison River Capital as Direct Subsidiary. Cause
Madison River Capital to be at all times a direct wholly-owned Subsidiary of the Borrower. 
  
 (e) Organizational Existence. Do or cause to be done all things necessary to preserve and keep in full force and effect (i) its
organizational existence in accordance with its organizational documents (as the same may be amended from time to time) and (ii) the rights (charter and statutory), licenses and franchises of the Borrower; provided, however, that (x)
the Borrower shall not be required to preserve any such right, license or franchise, if its Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Borrower and its Subsidiaries,
taken as a whole, and that the loss thereof is not adverse in any material respect to the Lenders and (y) the Borrower may convert into a Delaware corporation pursuant to Section 265 of the Delaware General Corporation Law. 
  
 (f) Maintenance of Insurance. Maintain insurance with
responsible and reputable insurance companies or associations in such amounts, with such self-insurance retentions or deductibles, 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 Borrower operates. 
  
 (g) Visitation Rights. At any reasonable time and from time to time, upon prior notice, permit any of the Agents or any agents or representatives thereof, to examine and make copies of and abstracts from the
records and books of account of, and visit the properties of the Borrower, and to discuss the affairs, finances and accounts of the Borrower with any of its officers or directors and, in the presence of an Officer of the Borrower, with its
independent certified public accountants; provided that the foregoing shall be limited by and subject to any confidentiality agreements or provisions or similar arrangements binding on the Borrower or any of its Subsidiaries. 
  

 27 

 (h) Reports. Annual Financials. As soon as available and in any event
within 15 days of the time periods specified in the SEC’s rules and regulations (whether or not required by the rules or regulations of the SEC), deliver to the Administrative Agent and the Lenders a copy of the annual audit report for each
Fiscal Year for the Borrower and its Subsidiaries, including therein Consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such Fiscal Year and Consolidated statement of income and a Consolidated statement of cash flows of
the Borrower and its Subsidiaries for such Fiscal Year, in each case accompanied by an opinion (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of the related audit)
of Ernst & Young or other independent public accountants of recognized standing. 
  
 (i) Quarterly Financials. As soon as available and in any event within 15 days of the time periods specified in the SEC’s
rules and regulations (whether or not required by the rules or regulations of the SEC), deliver to the Administrative Agent and the Lenders Consolidated balance sheet of the Borrower and its Subsidiaries as of the end of each quarter and
Consolidated statement of income and a Consolidated statement of cash flows of the Borrower 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 Consolidated
statement of income and a Consolidated statement of cash flows of the Borrower 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, all in reasonable detail and duly certified (subject to normal year-end audit adjustments and the absence of footnotes) by the Chief Financial Officer
of the Borrower as having been prepared in accordance with GAAP. 
  
 (ii) Annual Forecasts. As soon as available and in any event no later than 15 days before the end of each Fiscal Year, deliver to the Administrative Agent and the Lenders, if reasonably requested by the
Administrative Agent or the Lenders, forecasts prepared by management of the Borrower, in form satisfactory to the Administrative Agent, of balance sheets, income statements and cash flow statements on a monthly basis for the Fiscal Year following
such Fiscal Year and on an annual basis for each Fiscal Year thereafter until the Maturity Date. 
  
 (i) Compliance Certificate. Deliver to the Administrative Agent, within 90 days after the end of each Fiscal Year, an
Officers’ Certificate stating that a review of the activities of the Borrower during the preceding Fiscal Year has been made under the supervision of the signing Officers with a view to determining whether the Borrower has kept, observed,
performed and fulfilled its obligations hereunder, and further stating, as to each such Officer signing such certificate, that to the best of his or her knowledge, no Default or Event of Default exists as of the date of such certificate (or, if a
Default or Event of Default exists as of such date, describing all such Defaults or Events of Default of which he or she may have knowledge and what action the Borrower is taking or propose to take with respect thereto) and that to the best of his
or her knowledge no event has occurred and remains in existence by reason of which payments on account of the principal of or interest, if any, on the Advances is prohibited or if such event has occurred, a description of the event and what action
the Borrower is taking or proposes to take with respect thereto. 
  
 (i) So long as not contrary to the then current recommendations of the American Institute of Certified Public Accountants or the Public Company Accounting Oversight Board, the 

  

 28 

	 	 
year-end financial statements delivered pursuant to Section 5.01(i)(i) above shall be accompanied by a written statement of the Borrower’s independent
public accountants that in making the examination necessary for certification of such financial statements, nothing has come to their attention that would lead them to believe that the Borrower has violated any provisions of Article V hereof or, if
any such violation has occurred, specifying the nature and period of existence thereof, it being understood that such accountants shall not be liable directly or indirectly to any Person for any failure to obtain knowledge of any such violation.

  
 (ii) Deliver to the
Administrative Agent, promptly upon any Officer becoming aware of the existence of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event of Default and what action the Borrower is taking or proposes to take
with respect thereto. 
  
 (j) Other
Information. Such other information that the Borrower prepares in the ordinary course of its business respecting the business, financial condition, results of operations, or properties of the Borrower as any Agent, or any Lender through the
Administrative Agent, may from time to time reasonably request. 
  
 SECTION 5.02. Negative Covenants. So long as any Advance or any other Obligation of the Borrower under any Loan Document shall remain unpaid, the Borrower will not, at any time: 
  
 (a) Liens, Etc. Create, incur, assume or suffer to
exist, any Lien of any kind upon any of its property or assets, now owned or hereafter acquired, except: 
  
 (i) Liens securing Indebtedness under Credit Facilities that were permitted by the terms of this Agreement to be incurred; 
  
 (ii) Liens to secure the performance of statutory
obligations, surety or appeal bonds, performance bonds, deposits to secure the performance of bids, trade contacts, government contracts, leases or licenses or other obligations of like nature incurred in the ordinary course of business (including
without limitation, landlord Liens on eased properties); 
  
 (iii) Liens existing on the date hereof and listed in Schedule 4.01(b)(II); 
  
 (iv) Liens to secure the Obligations under the Loan Documents; 
  
 (v) Liens for taxes, assessments or governmental charges or claims that are not yet delinquent or that are
being contested in good faith by appropriate proceedings promptly instituted and diligently concluded, provided that any reserve or other appropriate provision as shall be required in conformity with GAAP shall have been made therefore;

  
 (vi) Liens imposed by law, such as
carriers’, warehousemen’s and mechanic’s liens and other similar liens arising in the ordinary course of business which secure payment of obligations that are not yet delinquent or that are being contested in good faith by appropriate
proceedings promptly instituted and diligently conducted and for which an appropriate reserve or provision shall have been made in accordance with GAAP; 
  

 29 

 (vii) easements, rights of way, and other restrictions on use of property or minor
imperfections of title that in the aggregate are not material in amount and do not in any case materially detract from the property subject thereto or interfere with the ordinary conduct of the business of the Borrower; 
  
 (viii) Liens incurred or deposits made in the ordinary
course of business in connection with workers’ compensation, unemployment insurance and other types of social security or Liens to secure reimbursement obligations with respect to letters of credit issued in the ordinary course of business;

  
 (ix) Liens on the assets of the Borrower to
secure Hedging Obligations with respect to Indebtedness permitted by this Agreement to be incurred; and 
  
 (x) attachment or judgment Liens not giving rise to a Default or an Event of Default. 
  
 (b) Incurrence of Indebtedness and Issuance of Preferred
Stock. Directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”), any Indebtedness (including
Acquired Debt), and the Borrower shall not issue any Disqualified Stock, except: 
  
 (i) Indebtedness under one or more Credit Facilities in an aggregate principal amount (with letters of credit being deemed to have a
principal amount equal to the maximum potential liability of the Borrower and its Restricted Subsidiaries thereunder), together with Indebtedness of its Restricted Subsidiaries under any Credit Facilities permitted by Section 4.09 of the Indenture,
at any one time outstanding not to exceed an amount equal to $517,000,000, less the amount of all Net Proceeds (as defined in the Indenture) of all Asset Sales (as defined in the Indenture) applied to repay Indebtedness under Credit Facilities
pursuant to Section 4.10 of the Indenture subsequent to the date of the Indenture; 
  
 (ii) Surviving Debt; 
  
 (iii) intercompany Indebtedness incurred by the Borrower as a result of loans or advances from any of its Restricted Subsidiaries;
provided, however, that (A) such Indebtedness must be expressly subordinated to the prior payment in full in cash of all Obligations with respect to the Advances on terms approved by the Administrative Agent and (B) (x) any subsequent
issuance or transfer of Equity Interests, other than directors qualifying shares, that results in any such Indebtedness being held by a Person other than a Restricted Subsidiary and (y) any sale or other transfer of any such Indebtedness to a Person
that is not the Borrower or a Restricted Subsidiary, shall be deemed, in each case, to constitute an incurrence of such Indebtedness by the Borrower that was not permitted by this clause (iii); 
  
 (iv) Hedging Obligations that are incurred for the purpose
of fixing or hedging interest rate risk with respect to any floating rate Indebtedness that is permitted by this Agreement to be outstanding; 
  
 (v) the guarantee by the Borrower of Indebtedness of a Restricted Subsidiary that was permitted to be incurred under the Indenture;

  

 30 

 (vi) loans and advances to the Borrower from members of the Board of Directors, officers
or shareholders of the Borrower; provided, however, that such Indebtedness must be expressly subordinated to the prior payment in full in cash of all Obligations with respect to the Advances and all terms of such Indebtedness shall
have been approved by the Administrative Agent; 
  
 (vii) obligations in respect of performance, bid, appeal, surety and similar bonds and completion of performance guarantees provided by the Borrower in the ordinary course of business; 
  
 (viii) Indebtedness of the Borrower owed to, including
obligations in respect of letters of credit for the benefit of, any Person in connection with workers’ compensation, health, disability or other employee benefits or property, casualty or liability insurance provided by such Person to the
Borrower, pursuant to reimbursement or indemnification obligations to such Person, in each case incurred in the ordinary course of business; provided, however, that upon the request of such Person for reimbursement or indemnification,
such obligations are reimbursed within 30 days following such incurrence or drawing; and 
  
 (ix) additional Indebtedness or Disqualified Stock of the Borrower (in addition to any Indebtedness or Disqualified Stock permitted by
clauses (i) through (ix))above in an aggregate principal amount (or accreted value, as applicable) at any time outstanding not to exceed $1,000,000; 
  
 provided that the Borrower shall not incur any Indebtedness (including any Indebtedness permitted under clauses (i) through (ix) above) that is contractually
subordinated in right of payment to any other Indebtedness of the Borrower unless such Indebtedness is also contractually subordinated in right of payment to the Advances on substantially identical terms; provided, however, that no
Indebtedness of the Borrower shall be deemed to be contractually subordinated in right of payment to any other Indebtedness of the Borrower solely by virtue of being unsecured. 
  
 (c) Change in Nature of Business. Make, or permit any of its Restricted Subsidiaries to make, any
material change in the nature or scope of its or their respective business as carried on at the date hereof. 
  
 (d) Mergers, Etc. Directly or indirectly consolidate or merge with or into another Person (whether or not the Borrower is the
surviving entity), or sell, assign, transfer, convey or otherwise dispose of all or substantially all of its properties or assets, except that the Borrower may convert into a Delaware corporation pursuant to Section 265 of the Delaware General
Corporation Law, so long as (i) such corporation assumes by operation of law or otherwise all the Obligations of the Borrower under the Loan Documents, and (ii) immediately after giving effect to such conversion, no Default or Event of Default
exists. 
  
 (e) Sales, Etc., of Assets.
Consummate an Asset Sale, except: 
  
 (i) any
single transaction or series of related transactions that involve assets having a fair market value of less than $1,000,000; 
  
 (ii) the license of intellectual property in the ordinary course of business; 
  

 31 

 (iii) the sale or other disposition of real or personal property or equipment that has
become worn out, obsolete or damaged or otherwise unsuitable or not required for use in connection with the business of the Borrower; 
  
 (iv) the sale or other disposition of cash or Cash Equivalents; 
  
 (v) the loss of property through (i) fire, accident or other casualty (including, without limitation, any
transfer of title to property to a casualty insurer in settlement of an insurance claim) or (ii) condemnation, expropriation or other seizure by any Governmental Authority; 
  
 (vi) the sale or lease of equipment, inventory, accounts receivable or other assets in the ordinary course
of business, and 
  
 (vii) other Asset Sales, so
long as: 
  
 (A) the Borrower receives
consideration at the time of such Asset Sale at least equal to the fair market value of the assets or Equity Interests issued or sold or otherwise disposed of, 
  

(B) such fair market value is determined by the Borrower’s Board of Directors and evidenced by a resolution of the Board of
Directors set forth in an Officers’ Certificate delivered to the Administrative Agent, and 
  
 (C) at least 75% of the consideration therefor received by the Borrower or any Restricted Subsidiary is in the form of cash or Cash
Equivalents; 
  
 provided that in each case above (other than any Excluded
Asset Sale) the Borrower shall, on the date of receipt of the Net Cash Proceeds from such Asset Sale, prepay the Advances to the extent required pursuant to, and in the amount set forth in, Section 2.03(b), as specified therein, provided
further that in no event shall the Borrower sell, transfer or otherwise dispose of any of the Equity Interests in Madison River Capital. 
  
 For purposes of this Section 5.02(e) only (and for the avoidance of doubt, not for purposes of the definition of “Net Cash Proceeds”), each of
the following shall be deemed to be cash: (x) any Indebtedness or other liabilities (as shown on the Borrower’s most recent balance sheet) of the Borrower (other than contingent liabilities and Indebtedness that is by its terms subordinated to
the Obligations under the Loan Documents) that are assumed by the transferee of any such assets pursuant to a customary novation agreement that releases the Borrower from further liability; and (y) any securities, notes or other obligations received
by the Borrower from such transferee that are (subject to ordinary settlement periods) converted within 60 days of the applicable Asset Sale by the Borrower into cash or Cash Equivalents (to the extent of the cash received in that conversion).

  
 (f) Restricted Payments. Make, directly or indirectly,
any Restricted Payments, except: 
  
 (i) the
repurchase, redemption or other acquisition or retirement for value of any Equity Interests in the Borrower that is held by any current or former employee, director or consultant (or their estates or the beneficiaries of such estates) of the
Borrower 

  

 36 

 
or any of its Subsidiaries; provided that the aggregate price paid for all such repurchased, redeemed, acquired or retired Equity Interests, together
with the aggregate price paid by the Restricted Subsidiaries of the Borrower in connection with any and all “Restricted Payments” (as defined in the Indenture) made as permitted under clause (5) of the second paragraph of Section 4.07 of
the Indenture, shall not exceed $1,000,000 in any twelve-month period; 
  
 (ii) so long as no Default or Event of Default shall have occurred and be continuing or shall be in existence immediately thereafter, making loans to members of management of the Borrower or any of its Subsidiaries
pursuant to written agreements with such members, in an aggregate principal amount (together with any and all principal amounts outstanding as permitted under clause (6) of the second paragraph of Section 4.07 of the Indenture) not to exceed
$1,000,000 in the aggregate at any one time outstanding; 
  
 (iii) the payment of cash in lieu of the issuance of fractional shares of common stock upon exercise or conversion of securities exercisable or convertible into common stock of the Borrower, 
  
 (iv) any purchase or acquisition from, or withholding on
issuances to, any employee of the Borrower’s Capital Stock in order to satisfy any applicable federal, state or local tax payments in respect of the receipt of shares of the Borrower’s Capital Stock, 
  
 (v) any withholding on issuances to any employee of the
Borrower of the Borrower’s Capital Stock in order to pay the purchase price of such Capital Stock or similar instrument pursuant to a stock option, equity incentive or other employee benefit plan or agreement of the Borrower, 
  
 (vi) so long as the Borrower is a limited liability company
treated as a partnership or an entity disregarded as separate from its owners for federal, state or local income tax purposes (and prior to any distribution of any Tax Amount, the Borrower delivers a certificate prepared by the Tax Amount CPA to
such effect), distributions to members of the Borrower in an amount, with respect to any period beginning after December 31, 1998, not to exceed the Tax Amount with respect to the Borrower for such period; 
  
 (vii) payments required to be made by the Borrower to its
directory publishers for services rendered for its directory business, to the extent corresponding payments are received by the Borrower from its applicable Subsidiaries; and 
  
 (viii) other Restricted Payments in an aggregate amount (together with any and all “Restricted
Payments” (as defined in the Indenture) made as permitted under clause (13) of the second paragraph of Section 4.07 of the Indenture) not to exceed $2,000,000, to the extent such Restricted Payments are not used to pay, directly or indirectly,
dividends, redemptions or other distributions in respect of any Equity Interests in the Borrower or any Parent Company; 
  
 provided, however, that in each case under clauses (i) through (viii) above no Event of Default has occurred and is continuing or would be caused thereby.

  

 33 

 The amount of all Restricted Payments (other than cash) shall be the fair market value on the date of the
Restricted Payment of the asset(s) or securities proposed to be transferred or issued by the Borrower pursuant to the Restricted Payment. The fair market value of any assets or securities that are required to be valued by this Section 5.02(f) shall
be determined by the Board of Directors whose resolution with respect thereto shall be delivered to the Administrative Agent. The Board of Directors’ determination must be based upon an opinion or appraisal issued by an accounting, appraisal or
investment banking firm of national standing if the fair market value exceeds $10,000,000. Not later than the date of making any Restricted Payment, the Borrower shall deliver to the Administrative Agent an Officers’ Certificate stating that
such Restricted Payment is permitted and setting forth the basis upon which the calculations required by this Section 5.02(f) were computed, together with a copy of any fairness opinion or appraisal required by this Agreement. 
  
 (g) Payment Restrictions Affecting Subsidiaries.
Directly or indirectly, permit any of its Restricted Subsidiaries to create or permit to exist or become effective any encumbrance or restriction on the ability of any Restricted Subsidiary to (x) pay dividends or make any other distributions on its
Capital Stock to the Borrower or any of the Borrower’s Restricted Subsidiaries, or with respect to any other interest or participation in, or measured by, its profits, or pay any indebtedness owed to the Borrower or any of its Restricted
Subsidiaries, (y) make loans or advances to the Borrower or any of its Restricted Subsidiaries, or (z) transfer any of its properties or assets to the Borrower or any of its Restricted Subsidiaries; provided, however, that the
preceding restrictions will not apply to encumbrances or restrictions existing under or by reason of: 
  
 (i) “Existing Indebtedness” (as defined in the Indenture) or Surviving Debt as in effect on the date hereof and any amendments,
modifications, restatements, renewals, increases, supplements, refundings, replacements or refinancings thereof, provided that such amendments, modifications, restatements, renewals, increases, supplements, refundings, replacement or
refinancings are no more restrictive, taken as a whole, with respect to such dividend and other payment restrictions than those contained in such “Existing Indebtedness” (as defined in the Indenture) or Surviving Debt (as applicable) as in
effect on the date hereof; 
  
 (ii) this
Agreement, the Notes, any other Loan Document, the Indenture or the Senior Notes; 
  
 (iii) applicable law, rule, regulation or order; 
  

(iv) any instrument governing Indebtedness or Capital Stock of a Person acquired by the Borrower or any of its Restricted Subsidiaries
as in effect at the time of such acquisition (except to the extent such Indebtedness was incurred in connection with or in contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the properties or
assets of any Person, other than the Person, or the property or assets of the Person, so acquired, provided that, in the case of Indebtedness, such Indebtedness was permitted by the terms of this Agreement, or the Indenture (as applicable) to
be incurred by the Borrower or such Restricted Subsidiary, respectively; 
  
 (v) customary non-assignment provisions in contracts entered into in the ordinary course of business; 
  

 34 

 (vi) purchase money obligations for property acquired in the ordinary course of business
that impose restrictions on the property so acquired of the nature described in clause (z) above; 
  
 (vii) any agreement for the sale or other disposition of a Restricted Subsidiary that restricts distributions by such Restricted
Subsidiary pending its sale or other disposition; 
  
 (viii) “Permitted Refinancing Indebtedness” (as defined in the Indenture), provided that the restrictions contained in the agreements governing such Permitted Refinancing Indebtedness are no more restrictive, taken as a
whole, than those contained in the agreements governing the Indebtedness being refinanced; 
  
 (ix) Liens securing Indebtedness otherwise permitted to be incurred pursuant to the provisions of the Indenture or of Section 5.02(a)
hereof that limit the right of the Borrower or any of its Restricted Subsidiaries to dispose of the assets subject to such Lien; 
  
 (x) provisions with respect to the disposition or distribution of assets or property in joint venture agreements and other similar
agreements entered into in the ordinary course of business; 
  
 (xi) restrictions on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of business; 
  
 (xii) other encumbrances and restrictions in effect on the date hereof; or 
  
 (xiii) restrictions imposed on a Restricted Subsidiary of
Madison River Capital pursuant to the terms of Indebtedness of such Restricted Subsidiary to the extent such Indebtedness was permitted by the Indenture to be incurred; provided that such restrictions are not more restrictive than those
contained in the Indenture. 
  
 (h) Limitation
on Sale and Leaseback Transactions. Enter into any sale and leaseback transaction. 
  
 (i) Transactions with Affiliates. Make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or
assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate, or permit any of its Subsidiaries to do so
(each, an “Affiliate Transaction”), unless (i) such Affiliate Transaction is on terms that are no less favorable to the Borrower or the relevant Subsidiary than those that would have been obtained in a comparable transaction
by the Borrower or such Subsidiary with an unrelated Person, and (ii) the Borrower delivers to the Administrative Agent (A) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in
excess of $2,500,000, a resolution of the Board of Directors set forth in an Officers’ Certificate certifying that such Affiliate Transaction complies with this Section 5.02(i) and that such Affiliate Transaction has been approved by a majority
of the disinterested members of the Board of Directors, and (B) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $10,000,000, an opinion as to the fairness to the
Lenders of such Affiliate Transaction from a financial point of view issued by an accounting, appraisal or investment banking firm of national standing. 
  

 35 

 The following items shall not be deemed to be Affiliate Transactions and, therefore, will
not be subject to the provisions of the prior paragraph: (1) any employment agreement entered into by the Borrower or any of its Subsidiaries in the ordinary course of business of the Borrower or such Subsidiaries, (2) transactions between or among
Madison River Capital and/or its Restricted Subsidiaries, (3) transactions with a Person that is an Affiliate of Madison River Capital solely because Madison River Capital owns an Equity Interest in such Person, (4) payment of reasonable fees,
expenses and compensation to officers, directors and employees of the Borrower and its Subsidiaries and customary indemnification and insurance arrangements in favor of any director, officer or employee of the Borrower and its Subsidiaries, and any
agreement relating to any of the foregoing entered into in the ordinary course of business, (5) sales or issuances of Equity Interests (other than Disqualified Stock) to Affiliates of the Borrower, (6) Restricted Payments by the Borrower that are
not prohibited by Section 5.02(f) hereof, (7) “Restricted Payments” (as defined in the Indenture) permitted under clauses (1), (3), (4), (5) (it being understood that for the purpose of this clause (7) of Section 5.02(i), such
“Restricted Payments” shall include “Restricted Payments” made to the holders immediately prior to the date hereof of the Bryant Notes but shall exclude any “Restricted Payments” made to a Principal or a Related Party
of a Principal), (6), (7), (8), (9), (10), (11) and (12) of the second paragraph of Section 4.07 of the Indenture, (8) dividends and distributions by Madison River Capital and its Subsidiaries to holders of their respective common Equity Interests
on a pro rata basis that are permitted under the Indenture, and (9) loans or advances, not to exceed $2,000,000 in the aggregate at any time outstanding, to employees in the ordinary course of business. 
  
 (j) Prepayment, Etc., of Indebtedness. Prepay,
redeem, purchase, defease or otherwise satisfy prior to the scheduled maturity thereof in any manner, or make any payment in violation of any subordination terms of, any of its Indebtedness for borrowed money, except (i) the prepayment of the
Advances in accordance with the terms of this Agreement, (ii) the prepayment of the Credit Facilities in accordance with the terms thereof and (iii) regularly scheduled or required repayments or redemptions of Indebtedness, or amend, modify or
change in any manner any term or condition of any Surviving Debt or subordinated Indebtedness. 
  
 (k) Refinancing of Senior Notes. Consummate any refinancing of the Senior Notes unless it uses its best efforts to generate
sufficient proceeds to repay the Advances in full, together with accrued interest and premium. 
  
 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 Borrower shall fail to pay any principal of any Advance when the same shall become due and payable or (ii) the Borrower shall
fail to pay any interest on any Advance, or the Borrower shall fail to make any other payment under any Loan Document, in each case under this clause (ii) within 5 Business Days after the same shall become due and payable; or 
  
 (b) any representation or warranty made by the Borrower (or
any of its officers) under or in connection with any Loan Document shall prove to have been incorrect in any material respect when made; or 
  

 36 

 (c) the Borrower shall fail to perform or observe any term, covenant or agreement
contained in Section 2.03, 2.09, 5.01(e) or 5.02; or 
  
 (d) the Borrower shall fail to perform or observe any other term, covenant or agreement contained in any Loan Document to be performed or observed if such failure shall remain unremedied for 30 days after written notice thereof shall have
been given to the Borrower by any Agent or any Lender; or 
  
 (e) the Borrower 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 Indebtedness of the Borrower or any Subsidiary (as the case may be)
that is outstanding in a principal amount of at least $10,000,000 either individually or in the aggregate for the Borrower and its and Subsidiaries (but excluding Indebtedness outstanding hereunder), when the same becomes due and payable (whether by
scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such Indebtedness; or any other event shall
occur or condition shall exist under any agreement or instrument relating to any such Indebtedness and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is
to accelerate, or to permit the acceleration of, the maturity of such Indebtedness or otherwise to cause, or to permit the holder thereof to cause, such Indebtedness to mature; or any such Indebtedness 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 or by a mandatory prepayment from the proceeds of asset sales, incurrence of Indebtedness, issuance of Equity Interests or generation of excess
cash flow (collectively, “Excluded Events”)), purchased or defeased, or an offer to prepay, redeem, purchase or defease such Indebtedness shall be required to be made (other than as a result of Excluded Events), in each case
prior to the stated maturity thereof; or 
  
 (f)
the Borrower or any of its Significant Subsidiaries shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or
any proceeding shall be instituted by or against the Borrower or any of its Significant Subsidiaries seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief,
or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee or other similar official for it or for
any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it) that is being diligently contested by it in good faith, either such proceeding shall remain undismissed or unstayed for a
period of 60 days or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or any substantial
part of its property) shall occur; or the Borrower or any of its Significant Subsidiaries shall take any action to authorize any of the actions set forth above in this subsection (f); or 
  
 (g) any judgments or orders, either individually or in the aggregate, for the payment of money to the extent
not covered by any insurance or indemnity in excess of $10,000,000 shall be rendered against the Borrower or any of its Subsidiaries and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii)
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 
  

 37 

 (h) a Change of Control shall occur; or 
  
 (i) The Borrower or any of its ERISA Affiliates shall incur,
or shall be reasonably likely to incur liability (to the extent not covered by any cash escrow arrangements or similar security provided by a Person other than the Borrower or any of the Subsidiaries) in excess of $10,000,000 in the aggregate as a
result of one or more of the following: (i) the occurrence of any ERISA Event; (ii) the partial or complete withdrawal of the Borrower or any of its ERISA Affiliates from a Multiemployer Plan; or (iii) the reorganization or termination of a
Multiemployer Plan; or 
  
 then, and in any such event, the Administrative Agent
(i) shall at the request, or may with the consent, of the Required Lenders, by notice to the Borrower, declare the obligation of each Lender to make Advances to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the
request, or may with the consent, of the Required Lenders, (A) by notice to the Borrower, declare the Advances, all interest thereon and all other amounts payable under this Agreement and the other Loan Documents to be forthwith due and payable,
whereupon the Advances, 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 Borrower; provided,
however, that in the event of an actual or deemed entry of an order for relief with respect to the Borrower under the Federal Bankruptcy Code, (x) the obligation of each Lender to make Advances shall automatically be terminated and (y) the
Advances, 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 Borrower. 
  
 ARTICLE VII 
  
 THE AGENTS 
  
 SECTION 7.01. Authorization and Action. (a) Each Lender (in its
capacities as a Lender) hereby appoints and authorizes each Agent to take such action as agent on its behalf and to exercise such powers and discretion under this Agreement and the other Loan Documents as are delegated to such Agent by the terms
hereof and thereof, together with such powers and discretion as are reasonably incidental thereto. As to any matters not expressly provided for by the Loan Documents (including, without limitation, enforcement or collection of the Advances), no
Agent shall be required to exercise any discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining from acting) upon the instructions of the Required Lenders, and
such instructions shall be binding upon all Lenders and all holders of Notes; provided, however, that no Agent shall be required to take any action that exposes such Agent to personal liability or that is contrary to this Agreement or
applicable law. Each Agent agrees to give to each Lender prompt notice of each notice given to it by the Borrower pursuant to the terms of this Agreement. 
  
 (b) Any Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or
attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters pertaining to such duties. No Agent shall be responsible for the negligence or misconduct of any agent or attorney-in-fact that it
selects in accordance with the foregoing provisions of this Section 7.01(b) in the absence of such Agent’s gross negligence or willful misconduct. 
  
 SECTION 7.02. Agents’ Reliance, Etc. Neither any Agent nor any of their respective directors, officers, agents or employees shall be liable
for any action taken or omitted to be taken by it or them 

  

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under or in connection with the Loan Documents, except for its or their own gross negligence or willful misconduct. Without limitation of the generality of
the foregoing, each Agent: (a) may treat the payee of any Note as the holder thereof until, in the case of the Administrative Agent, the Administrative Agent receives and accepts an Assignment and Acceptance entered into by the Lender that is the
payee of such Note, as assignor, and an Eligible Assignee, as assignee, or, in the case of any other Agent, such Agent has received notice from the Administrative Agent that it has received and accepted such Assignment and Acceptance, in each case
as provided in Section 8.07; (b) may consult with legal counsel (including counsel for the Borrower), independent public accountants and other experts selected by it and shall not be liable for any action taken or omitted to be taken in good faith
by it in accordance with the advice of such counsel, accountants or experts; (c) makes no warranty or representation to any Lender and shall not be responsible to any Lender for any statements, warranties or representations (whether written or oral)
made in or in connection with the Loan Documents; (d) shall not have any duty to ascertain or to inquire as to the performance, observance or satisfaction of any of the terms, covenants or conditions of any Loan Document on the part of the Borrower
or the existence at any time of any Default under the Loan Documents or to inspect the property (including the books and records) of the Borrower; (e) shall not be responsible to any Lender for the due execution, legality, validity, enforceability,
genuineness, sufficiency or value of, or the perfection or priority of any lien or security interest created or purported to be created under or in connection with, any Loan Document or any other instrument or document furnished pursuant thereto;
and (f) shall incur no liability under or in respect of any Loan Document by acting upon any notice, consent, certificate or other instrument or writing (which may be by telegram, telecopy or telex) believed by it to be genuine and signed or sent by
the proper party or parties. 
  
 SECTION 7.03. MLCC, MLPF&S
and Affiliates. With respect to the Advances made by it, MLCC shall have the same rights and powers under the Loan Documents as any other Lender and may exercise the same as though it were not an Agent; and the term “Lender” or
“Lenders” shall, unless otherwise expressly indicated, include MLCC in its individual capacity. MLCC and MLPF&S and their respective affiliates may accept deposits from, lend money to, act as trustee under indentures of, accept
investment banking engagements from and generally engage in any kind of business with, the Borrower, any of its Subsidiaries and any Person that may do business with or own securities of the Borrower or any such Subsidiary, all as if MLCC and
MLPF&S were not Agents and without any duty to account therefor to the Lenders. No Agent shall have any duty to disclose any information obtained or received by it or any of its Affiliates relating to the Borrower or any of its Subsidiaries to
the extent such information was obtained or received in any capacity other than as such Agent. 
  
 SECTION 7.04. Lender Credit Decision. Each Lender acknowledges that it has, independently and without reliance upon any Agent or any other Lender and based on the financial statements referred to in Section
4.01 and such other documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon any Agent or any
other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement. 
  
 SECTION 7.05. Indemnification. Each Lender severally agrees to
indemnify each Agent (to the extent not promptly reimbursed by the Borrower) from and against such Lender’s ratable share (determined as provided below) of any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against such Agent in any way relating to or arising out of the Loan Documents or any action taken or omitted by such Agent
under the Loan Documents (collectively, the “Indemnified Costs”); provided, however, that no Lender 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 as found in a final, non-appealable 

  

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judgment by a court of competent jurisdiction. Without limitation of the foregoing, each Lender agrees to reimburse each Agent promptly upon demand for its
ratable share of any costs and expenses (including, without limitation, fees and expenses of counsel) payable by the Borrower under Section 8.04, to the extent that such Agent is not promptly reimbursed for such costs and expenses by the Borrower.
In the case of any investigation, litigation or proceeding giving rise to any Indemnified Costs, this Section 7.05 applies whether any such investigation, litigation or proceeding is brought by any Lender or any other Person. 
  
 (a) For purposes of this Section 7.05, the Lenders’
respective ratable shares of any amount shall be determined, at any time, according to the aggregate principal amount of the Advances outstanding at such time and owing to the respective Lenders. The failure of any Lender to reimburse any Agent
promptly upon demand for its ratable share of any amount required to be paid by the Lenders to such Agent, as provided herein shall not relieve any other Lender of its obligation hereunder to reimburse such Agent for its ratable share of such
amount, but no Lender shall be responsible for the failure of any other Lender to reimburse such Agent for such other Lender’s ratable share of such amount. Without prejudice to the survival of any other agreement of any Lender hereunder, the
agreement and obligations of each Lender contained in this Section 7.05 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under the other Loan Documents. 
  
 SECTION 7.06. Successor Agents. Any Agent may resign at any time by
giving 30 days prior written notice thereof to the Lenders and the Borrower and may be removed at any time with or without cause by the Required Lenders; provided, however, that any resignation or removal of any Agent will not be
effective until the appointment and acceptance of a successor Agent as provided in this Section 7.06. Upon any such resignation or removal, the Required Lenders (with the consent of the Borrower) shall have the right to appoint a successor Agent. If
no successor Agent shall have been so appointed by the Required Lenders, and shall have accepted such appointment, within 30 days after the retiring Agent’s giving of notice of resignation or the Required Lenders’ removal of the retiring
Agent, then the retiring Agent may (with the consent of the Borrower), on behalf of the Lenders, appoint a successor Agent, which shall be a commercial bank organized under the laws of the United States or of any State thereof and having a combined
capital and surplus of at least $500,000,000. Upon the acceptance of any appointment as Agent hereunder by a successor Agent such successor Agent shall succeed to and become vested with all the rights, powers, discretion, privileges and duties of
the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations under the Loan Documents. After any retiring Agent’s resignation or removal hereunder as Agent shall have become effective, the provisions of this
Article VII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement. 
  
 ARTICLE VIII 
  
 MISCELLANEOUS 
  
 SECTION 8.01. Amendments, Etc. No amendment or waiver of any provision of this Agreement or the Notes or any other Loan Document, nor consent to any departure by the Borrower therefrom, shall in any event be
effective unless the same shall be in writing and signed by the Required Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no
amendment, waiver or consent shall, unless in writing and signed by all of the Lenders, do any of the following at any time: (i) waive any of the conditions specified in Section 3.01, (ii) change the number of Lenders or the percentage of the
aggregate unpaid principal amount of the Advances that, in each case, shall be required for the Lenders or any of them to take any action hereunder or (iii) amend Section 2.08 or this Section 8.01; provided further that 

  

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no amendment, waiver consent shall (x) reduce the principal of, or interest on, the Advances or any fees or other amounts payable hereunder to any Lender
without the consent of such Lender, or (y) postpone any date scheduled for any payment of principal of, or interest on, the Advances pursuant to Section 2.02 or 2.04 or any date fixed for payment of fees or other amounts payable hereunder to any
Lender without the consent of such Lender; and provided further that no amendment, waiver or consent shall, unless in writing and signed by an Agent in addition to the Lenders required above to take such action, affect the rights or duties of
such Agent under this Agreement or the other Loan Documents. 
  
 SECTION 8.02. Notices, Etc. All notices and other communications provided for hereunder shall be in writing (including telegraphic, telecopy or e-mail communication) and mailed, telegraphed, telecopied, telexed or delivered, if to
the Borrower, at its address at 103 South Fifth Street, Mebane, North Carolina 27302, Attention: Chief Financial Officer (with a copy to the attention of the General Counsel at the same address); if to the Initial Lender, at its Lending Office
specified in Section 1.01; if to any other Lender, at its Lending Office specified in the Assignment and Acceptance pursuant to which it became a Lender; and if to the Administrative Agent, at its address at 4 World Financial Center, North Tower,
New York, New York 10080, Attention: Concetta Prainito; or, as to any party, at such other address as shall be designated by such party in a written notice to the other parties. All such notices and other communications shall, when mailed,
telegraphed, telecopied, telexed or delivered, be effective (i) in the event of mail, three Business Days after such notice or other communication is deposited in the mails and (ii) in the event of telegraph, telecopy or telex, upon confirmation of
transmission or delivery, except that notices and communications to any Agent pursuant to Article II, III or VII shall not be effective until received by such Agent. Delivery by telecopier of an executed counterpart of a signature page to this
Agreement or to any amendment or waiver of any provision of this Agreement or the Notes or of any Exhibit hereto to be executed and delivered hereunder shall be effective as delivery of an original executed counterpart thereof. 
  
 SECTION 8.03. No Waiver; Remedies. No failure on the part of any
Lender or any Agent to exercise, and no delay in exercising, any right hereunder or under any Note or any other Loan Document 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 8.04. Costs and Expenses. The Borrower agrees to pay on demand (i) all reasonable out-of-pocket costs and expenses of each Agent in
connection with the preparation, execution, delivery, administration (provided that costs and expenses relating to administration shall be limited to those of MLCC in its capacity as Administrative Agent and shall not include those of any
other Agent or successor Agent), modification and amendment of, or any consent or waiver under (whether or not effective), the Loan Documents (including, without limitation, (A) all due diligence, transportation, computer, duplication and audit fees
and expenses and (B) the reasonable fees and expenses of counsel for the Administrative Agent with respect thereto, incurred in connection with the negotiation, preparation, execution and delivery, waiver or modification, collection and enforcement
of this Agreement and the other Loan Documents and whether or not such fees and expenses are incurred before or after the date hereof) and (ii) all reasonable out-of-pocket costs and expenses of each Agent and each Lender in connection with the
enforcement of the Loan Documents, whether in any action, suit or litigation, or any bankruptcy, insolvency or other similar proceeding affecting creditors’ rights generally (including, without limitation, the reasonable fees and expenses of
counsel for the Administrative Agent and the Lenders with respect thereto). 
  
 (a) The Borrower agrees to indemnify, defend and save and hold harmless each Agent, each Lender and their respective officers, directors, employees, agents and advisors (each, an “Indemnified
Party”) from and against, and shall pay any and all claims, damages, losses, liabilities and 

  

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expenses (including, without limitation, reasonable fees and expenses of counsel) that may be incurred by or asserted or awarded against any Indemnified
Party, in each case arising out of or in connection with or by reason of (including, without limitation, in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) (i) the Facility, the actual
or proposed use of the proceeds of the Advances, the Loan Documents or any of the transactions contemplated thereby or (ii) the actual or alleged presence of Hazardous Materials on any property of the Borrower or any of its Subsidiaries or any
Environmental Action relating in any way to the Borrower or any of its Subsidiaries, except to the extent such claim, damage, loss, liability or expense resulted from such Indemnified Party’s bad faith, gross negligence or willful misconduct.
In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 8.04(b) applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by the Borrower, its
directors, shareholders or creditors or an Indemnified Party or any other Person, whether or not any Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated hereunder are consummated. The Borrower also agrees
not to assert any claim against any Agent, any Lender or any of their Affiliates, or any of their respective officers, directors, employees, agents and advisors, on any theory of liability, for special, indirect, consequential or punitive damages
arising out of or otherwise relating to the Facility, the actual or proposed use of the proceeds of the Advances, the Loan Documents or any of the transactions contemplated by the Loan Documents. 
  
 (b) If the Borrower fails to pay when due any costs,
expenses or other amounts payable by it under any Loan Document, including, without limitation, fees and expenses of counsel and indemnities, such amount may be paid on behalf of the Borrower by the Administrative Agent or any Lender, in its sole
discretion. 
  
 (c) Without prejudice to the
survival of any other agreement of the Borrower hereunder or under any other Loan Document, the agreements and obligations of the Borrower contained in Section 2.07 and this Section 8.04 shall survive the payment in full of principal, interest and
all other amounts payable hereunder and under any of the other Loan Documents. 
  
 SECTION 8.05. Right of Set-off. Upon the occurrence and during the continuance of any Event of Default, each Agent and each Lender and each of their respective Affiliates is hereby authorized at any time and
from time to time, to the fullest extent permitted by law, to set off and otherwise 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 such Agent, such
Lender or such Affiliate to or for the credit or the account of the Borrower against any and all of the Obligations of the Borrower now or hereafter existing under the Loan Documents, irrespective of whether such Agent or such Lender shall have made
any demand under this Agreement or such Note or Notes and although such Obligations may be unmatured. Each Agent and each Lender agrees promptly to notify the Borrower after any such set-off and application; provided, however, that the
failure to give such notice shall not affect the validity of such set-off and application. The rights of each Agent and each Lender and their respective Affiliates under this Section are in addition to other rights and remedies (including, without
limitation, other rights of set-off) that such Agent, such Lender and their respective Affiliates may have. 
  
 SECTION 8.06. Binding Effect. This Agreement shall become effective when it shall have been executed by the Borrower, each Agent and the Initial
Lender and thereafter shall be binding upon and inure to the benefit of the Borrower, each Agent and each Lender and their respective successors and assigns, except that the Borrower shall not have the right to assign its rights hereunder or any
interest herein without the prior written consent of the Lenders. 
  
 SECTION 8.07. Assignments and Participations. Each Lender may assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including, without 

  

 42 

 
limitation, the Advances owing to it and the Note or Notes held by it); provided, however, that (i) each such assignment shall be of a uniform, and
not a varying, percentage of all rights and obligations under and in respect of the Facility, (ii) the aggregate amount of the Advances being assigned to such Eligible Assignee pursuant to such assignment (determined as of the date of the Assignment
and Acceptance with respect to such assignment) shall in no event be less than $1,000,000, (iii) each such assignment shall be to an Eligible Assignee, and (iv) the parties to each such assignment shall execute and deliver to the Administrative
Agent, for its acceptance and recording in the Register, an Assignment and Acceptance, together with any Note or Notes, if applicable, subject to such assignment and a processing and recordation fee of $3,500. 
  
 (a) Upon such execution, delivery, acceptance and recording,
from and after the Effective Date specified in such Assignment and Acceptance, (i) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and
Acceptance, have the rights and obligations of a Lender hereunder and (ii) the Lender assignor thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its
rights (other than its rights under Sections 2.07 and 8.04 to the extent any claim thereunder relates to an event arising prior to such assignment) and be released from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all of the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto). 
  
 (b) By executing and delivering an Assignment and Acceptance, each Lender assignor thereunder and each
assignee thereunder confirm to and agree with each other and the other parties thereto and hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations made in or in connection with any Loan Document or the execution, legality, validity, enforceability, genuineness, sufficiency or value of, or the perfection or priority of
any lien or security interest created or purported to be created under or in connection with, any Loan Document or any other instrument or document furnished pursuant thereto; (ii) such assigning Lender makes no representation or warranty and
assumes no responsibility with respect to the financial condition of the Borrower or the performance or observance by the Borrower of any of its obligations under any Loan Document or any other instrument or document furnished pursuant thereto;
(iii) such assignee confirms that it has received a copy of this Agreement, together with copies of the financial statements referred to in Section 4.01 and such other documents and information as it has deemed appropriate to make its own credit
analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon any Agent, such assigning Lender or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement; (v) such assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints and authorizes each Agent to take such
action as agent on its behalf and to exercise such powers and discretion under the Loan Documents as are delegated to such Agent by the terms hereof and thereof, together with such powers and discretion as are reasonably incidental thereto; and
(vii) such assignee agrees that it will perform in accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as a Lender. 
  
 (c) The Administrative Agent shall maintain at its address referred to in Section 8.02 a copy of each
Assignment and Acceptance delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the principal amount of the Advances owing to, each Lender from time to time (the
“Register”). The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the Agents and the Lenders may treat each Person whose name is recorded in the Register as a
Lender hereunder for all purposes of this 

  

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Agreement. The Register shall be available for inspection by the Borrower or any Agent or any Lender at any reasonable time and from time to time upon
reasonable prior notice. 
  
 (d) Upon its receipt
of an Assignment and Acceptance executed by an assigning Lender and an assignee, together with any Note or Notes subject to such assignment, the Administrative Agent shall, if such Assignment and Acceptance has been completed and is in substantially
the form of Exhibit B hereto, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the Borrower and each other Agent. In the case of any assignment by a
Lender, within five Business Days after its receipt of such notice, the Borrower, at its own expense, shall execute and deliver to the Administrative Agent in exchange for the surrendered Note or Notes (which shall be marked “cancelled”),
if applicable, a new Note to the order of such Eligible Assignee in an amount equal to the outstanding Advances assumed by it pursuant to such Assignment and Acceptance and, if any assigning Lender has retained outstanding Advances hereunder, a new
Note to the order of such assigning Lender in an amount equal to the outstanding Advances retained by it hereunder. Such new Note or Notes shall be in an aggregate principal amount equal to the aggregate principal amount of such surrendered Note or
Notes, shall be dated the effective date of such Assignment and Acceptance and shall otherwise be in substantially the form of Exhibit A-1 or A-2 hereto, as the case may be. 
  
 (e) Each Lender may sell participations to one or more Persons (other than the Borrower or any of its
Affiliates) in or to all or a portion of its rights and obligations under this Agreement (including, without limitation, all or a portion of the Advances owing to it and the Note or Notes (if any) held by it); provided, however, that (i) such
Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) such Lender shall remain the holder of any such Note
for all purposes of this Agreement, (iv) the Borrower, the Agents and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement and (v) no
participant under any such participation shall have any right to approve any amendment or waiver of any provision of any Loan Document, or any consent to any departure by the Borrower therefrom, except to the extent that such amendment, waiver or
consent would reduce the principal of, or interest on, the Advances or any fees or other amounts payable hereunder, in each case to the extent subject to such participation, or postpone any date scheduled for any payment of principal of, or interest
on, the Advances pursuant to Section 2.02 or 2.04 or any dated fixed for payment of fees or other amounts payable hereunder, in each case to the extent subject to such participation. 
  
 (f) Any Lender may, in connection with any assignment or participation or proposed assignment or
participation pursuant to this Section 8.07, disclose to the assignee or participant or proposed assignee or participant any information relating to the Borrower furnished to such Lender by or on behalf of the Borrower; provided, however,
that, prior to any such disclosure, the assignee or participant or proposed assignee or participant shall agree to preserve the confidentiality of any Confidential Information in accordance with Section 8.09. 
  
 (g) Notwithstanding any other provision set forth in this
Agreement, any Lender may at any time create a security interest in all or any portion of its rights under this Agreement (including, without limitation, the Advances owing to it and the Note or Notes held by it) in favor of any Federal Reserve Bank
in accordance with Regulation A of the Board of Governors of the Federal Reserve System. 
  
 SECTION 8.08. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same 

  

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agreement. Delivery by telecopier of an executed counterpart of a signature page to this Agreement shall be effective as delivery of an original executed
counterpart of this Agreement. 
  
 SECTION 8.09.
Confidentiality. Neither any Agent nor any Lender shall disclose any Confidential Information to any Person without the consent of the Borrower, other than (a) to such Agent’s or such Lender’s Affiliates and their officers,
directors, employees, agents and advisors and to actual or prospective Eligible Assignees and participants, and then only on a confidential basis in accordance with this Section, (b) as required by any law, rule or regulation or judicial process,
(c) as requested or required by any state, Federal or foreign authority or examiner (including the National Association of Insurance Commissioners or any similar organization or quasi-regulatory authority) regulating such Lender, (d) to any rating
agency when required by it, provided that, prior to any such disclosure, such rating agency shall undertake to preserve the confidentiality of any Confidential Information relating to the Borrower received by it from such Lender, (e) in
connection with any litigation or proceeding to which such Agent or such Lender or any of its Affiliates may be a party or (f) in connection with the exercise of any right or remedy under this Agreement or any other Loan Document. 
  
 SECTION 8.10. Jurisdiction, Etc. Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any New York State court or Federal court of the United States of America sitting in New York City, and any appellate court from any thereof,
in any action or proceeding arising out of or relating to this Agreement or any of the other Loan Documents to which it is a party, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to the fullest extent permitted by law, in such Federal court. To the extent permitted by applicable
law, each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement
shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or any of the other Loan Documents in the courts of any jurisdiction. 
  
 (a) Each of the parties hereto irrevocably and
unconditionally waives, to the fullest extent it may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any of the
other Loan Documents to which it is a party in any court described in the first sentence of Section 8.10(a). Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court. 
  
 SECTION 8.11. Governing Law. This Agreement and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 
  

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 SECTION 8.12. Waiver of Jury Trial. Each of the Borrower, the Agents and the Lenders irrevocably
waives all right to trial by jury in any action, proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or relating to any of the Loan Documents, the Advances or the actions of any Agent or any Lender in the
negotiation, administration, performance or enforcement thereof. 
  
 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. 
  

					
	 MADISON RIVER TELEPHONE COMPANY LLC

		
	 By
	 	 /s/    J. Stephen Vanderwoude

	 	 	 Title:
	 	Managing Director and Chief Executive Officer

			
	 MERRILL LYNCH CAPITAL CORPORATION,
 as
Administrative Agent

		
	By	 	/S/    JACK MANN
	 	 	 Title: President

			
	 MERRILL LYNCH, PIERCE, FENNER &
SMITH INCORPORATED,
 as Lead Arranger

		
	By	 	 /s/    Jack Mann

	 	 	 Title: President

 Initial Lender 
  

			
	MERRILL LYNCH CAPITAL CORPORATION
		
	By	 	 /s/    Jack Mann

	 	 	 Title: President

 EXHIBIT A-1 
  
 FORM OF TERM NOTE 
  

			
	 $                    
	 	Dated:                          ,
            

  
 FOR VALUE RECEIVED,
the undersigned, MADISON RIVER TELEPHONE COMPANY LLC, a Delaware limited liability company (the “Borrower”), HEREBY PROMISES TO PAY TO
                                        
     or its registered assigns (the “Lender”) on the Maturity Date (as defined in the Credit Agreement referred to below) the principal amount of the Advance (as defined below) owing to the Lender by
the Borrower pursuant to the Credit Agreement dated as of December 22, 2004 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; terms defined therein, unless
otherwise defined herein, being used herein as therein defined) among the Borrower, the Lender and certain other Lenders party thereto, the Lead Arranger party thereto and Merrill Lynch Capital Corporation, as Administrative Agent for the Lender and
such other Lenders. 
  
 The Borrower promises to pay to the Lender
interest on the unpaid principal amount of the Advance owing to the Lender from the date of such Advance until such principal amount is paid in full, at such interest rates, in such manner and payable at such times, as are specified in the Credit
Agreement. 
  
 Both principal and interest are payable in lawful
money of the United States of America. All payments made on account of principal of the Advance owing to the Lender by the Borrower and all interest thereon that is capitalized and added to the principal thereof (and not evidenced by a separate PIK
Note issued to the Lender) shall be recorded by the Lender and, prior to any transfer hereof, endorsed on the grid attached hereto, which is part of this Promissory Note; provided, however, that the failure of the Lender to make any such
recordation or endorsement shall not affect the Obligations of the Borrower under this Promissory Note. 
  
 This Promissory Note is one of the Term Notes referred to in, and is entitled to the benefits of, the Credit Agreement. The Credit Agreement, among other
things, (i) provides for the making of one or more advances (each, an “Advance”) by the Lenders to the Borrower, and (ii) contains provisions for acceleration of the maturity hereof upon the happening of certain stated events
and also for prepayments on account of principal hereof prior to the maturity hereof upon the terms and conditions therein specified. 
  
 THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED STATES FEDERAL INCOME TAX PURPOSES (“OID”). The
Lender may, upon request, obtain from the Borrower the Note’s issue price, issue date, amount of OID and yield to maturity for purposes of accruing OID by contacting Paul Sunu, Chief Financial Officer, 103 South Fifth Street, Mebane, North
Carolina 27302. 
  

			
	MADISON RIVER TELEPHONE COMPANY LLC
		
	By	 	 
	 Title:
	 	 

  
 PAYMENTS OF PRINCIPAL AND
CAPITALIZATION OF INTEREST 
  

									
	 Date

	 	 Amount of
 Principal Paid
 or Prepaid

	 	 Capitalized
 Interest

	 	 Unpaid
 Principal
 Balance

	 	 Notation
 Made By

  
 EXHIBIT A-2 

 
 FORM OF PIK NOTE 
  

			
	 $                                
	  	Dated:                          ,
        

  
 FOR VALUE RECEIVED,
the undersigned, MADISON RIVER TELEPHONE COMPANY LLC, a Delaware limited liability company (the “Borrower”), HEREBY PROMISES TO PAY TO
                                     or its registered assigns
(the “Lender”) on the Maturity Date (as defined in the Credit Agreement referred to below) the principal amount of
                            
($                    ) representing interest paid in kind (the “PIK Amount”) on an Advance outstanding under the
Credit Agreement dated as of December 22, 2004 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; terms defined therein, unless otherwise defined herein, being
used herein as therein defined) among the Borrower, the Lender and certain other Lenders party thereto, the Lead Arranger party thereto and Merrill Lynch Capital Corporation, as Administrative Agent for the Lender and such other Lenders. 

 
 The Borrower promises to pay to the Lender interest on the unpaid
principal amount of the PIK Amount from the date hereof until such principal amount is paid in full, at such interest rates, in such manner and payable at such times, as are specified in the Credit Agreement. 
  
 Both principal and interest are payable in lawful money of the United States
of America. All payments made on account of principal of the PIK Amount and all interest thereof that is capitalized and added to the principal hereof (and not evidenced by a separate PIK Note issued to the Lender) shall be recorded by the Lender
and, prior to any transfer hereof, endorsed on the grid attached hereto, which is part of this Promissory Note; provided, however, that the failure of the Lender to make any such recordation or endorsement shall not affect the Obligations of
the Borrower under this Promissory Note. 
  
 This Promissory Note
is one of the PIK Notes referred to in, and is entitled to the benefits of, the Credit Agreement. The Credit Agreement, among other things, (i) provides for the payment of interest on the Advances in kind under the Credit Agreement, and (ii)
contains provisions for acceleration of the maturity hereof upon the happening of certain stated events and also for prepayments on account of principal hereof prior to the maturity hereof upon the terms and conditions therein specified. 

 
 THIS NOTE HAS BEEN ISSUED WITH ORIGINAL ISSUE DISCOUNT FOR UNITED
STATES FEDERAL INCOME TAX PURPOSES (“OID”). The Lender may, upon request, obtain from the Borrower the Note’s issue price, issue date, amount of OID and yield to maturity for purposes of accruing OID by contacting
Paul Sunu, Chief Financial Officer, 103 South Fifth Street, Mebane, North Carolina 27302. 
  

					
	 MADISON RIVER TELEPHONE COMPANY LLC

			
	 	 	 By
	 	 
	 	 	 Title:
	 	 

  
 PAYMENTS OF PRINCIPAL AND
CAPITALIZATION OF INTEREST 
  

									
	 Date

	  	 Amount of
 Principal Paid
 or Prepaid

	  	 Capitalized
 Interest

	  	 Unpaid
 Principal
 Balance

	  	 Notation
 Made
 By

  
 EXHIBIT B 

 
 FORM OF 
 ASSIGNMENT AND ACCEPTANCE 
  
 Reference is made to the Credit Agreement dated as of December 22, 2004 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; the
terms defined therein, unless otherwise defined herein, being used herein as therein defined) among Madison River Telephone Company LLC, a Delaware limited liability company (the “Borrower”), the Lenders party thereto, the
Lead Arranger party thereto and Merrill Lynch Capital Corporation, as Administrative Agent for the Lenders. 
  
 Each “Assignor” referred to on Schedule 1 hereto (each, an “Assignor”) and each “Assignee” referred to on
Schedule 1 hereto (each, an “Assignee”) agrees severally with respect to all information relating to it and its assignment hereunder and on Schedule 1 hereto as follows: 
  
 (1) Such Assignor hereby sells and assigns, without recourse except as to the
representations and warranties made by it herein, to such Assignee, and such Assignee hereby purchases and assumes from such Assignor, an interest in and to such Assignor’s rights and obligations under the Credit Agreement as of the date hereof
equal to the percentage interest specified on Schedule 1 hereto of all outstanding rights and obligations under the Credit Agreement. After giving effect to such sale and assignment, and the amount of the Advances owing to such Assignee will be as
set forth on Schedule 1 hereto. 
  
 (2) Such Assignor (i)
represents and warrants that its name set forth on Schedule 1 hereto is its legal name, that it is the legal and beneficial owner of the interest or interests being assigned by it hereunder and that such interest or interests are free and clear of
any adverse claim; (ii) makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with any Loan Document or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of any Loan Document or any other instrument or document furnished pursuant thereto; (iii) makes no representation or warranty and assumes no responsibility with respect to the financial condition of
the Borrower or the performance or observance by the Borrower of any of its obligations under any Loan Document or any other instrument or document furnished pursuant thereto; and (iv) attaches the Note or Notes marked “cancelled” held by
such Assignor (if any) and requests that the Administrative Agent exchange such Note or Notes for a new Note or Notes payable to the order of such Assignee in an amount equal to the Advances, assumed by such Assignee pursuant hereto or new Notes
payable to the order of such Assignee in an amount equal to the Advances assumed by such Assignee pursuant hereto and such Assignor in an amount equal to the Advances retained by such Assignor under the Credit Agreement, respectively, as specified
on Schedule 1 hereto. 
  
 (3) Such Assignee (i) confirms that it
has received a copy of the Credit Agreement, together with copies of the financial statements referred to in Section 4.01 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to
enter into this Assignment and Acceptance; (ii) agrees that it will, independently and without reliance upon any Agent, any Assignor or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue
to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) represents and warrants that its name set forth on Schedule 1 hereto is its legal name; (iv) confirms that it is an Eligible Assignee; (v) appoints and
authorizes each Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Loan Documents as are delegated to such Agent by the terms thereof, together with such powers and discretion as are 

 
reasonably incidental thereto; (vi) agrees that it will perform in accordance with their terms all of the obligations that by the terms of the Credit
Agreement are required to be performed by it as a Lender; and (vii) attaches any U.S. Internal Revenue Service forms required under Section 2.07 of the Credit Agreement. 
  
 (4) Following the execution of this Assignment and Acceptance, it will be delivered to the Administrative Agent for
acceptance and recording by the Administrative Agent. The Effective Date for this Assignment and Acceptance (the “Effective Date”) shall be the date of acceptance hereof by the Administrative Agent, unless otherwise specified
on Schedule 1 hereto. 
  
 (5) Upon such acceptance and recording
by the Administrative Agent, as of the Effective Date, (i) such Assignee shall be a party to the Credit Agreement and, to the extent provided in this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and (ii) such
Assignor shall, to the extent provided in this Assignment and Acceptance, relinquish its rights and be released from its obligations under the Credit Agreement (other than its rights or obligations, as the case may be, under Sections 2.07, 7.05 and
8.04 of the Credit Agreement to the extent any claim thereunder relates to an event arising prior to the Effective Date of this Assignment and Acceptance) and, if this Assignment and Acceptance covers all of the remaining portion of the rights and
obligations of such Assignor under the Credit Agreement, such Assignor shall cease to be a party thereto. 
  
 (6) Upon such acceptance and recording by the Administrative Agent, from and after the Effective Date, the Administrative Agent shall make all payments
under the Credit Agreement and the Notes in respect of the interest assigned hereby (including, without limitation, all payments of principal, interest and commitment fees with respect thereto) to such Assignee. Such Assignor and such Assignee shall
make all appropriate adjustments in payments under the Credit Agreement and the Notes for periods prior to the Effective Date directly between themselves. 
  
 (7) This Assignment and Acceptance shall be governed by, and construed in accordance with, the laws of the State of New York. 
  
 (8) This Assignment and Acceptance may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart
of Schedule 1 to this Assignment and Acceptance by telecopier shall be effective as delivery of an original executed counterpart of this Assignment and Acceptance. 
  
 IN WITNESS WHEREOF, each Assignor and each Assignee have caused Schedule 1 to this Assignment and Acceptance to be executed
by their officers thereunto duly authorized as of the date specified thereon. 

  
 SCHEDULE 1 

TO 
 ASSIGNMENT AND ACCEPTANCE

  

																
	 ASSIGNORS:
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
	 Percentage interest assigned
	  	 	%	  	 	%	  	 	%	  	 	%	  	 	%
	 Outstanding principal amount of Advance assigned
	  	$	 	  	$	 	  	$	 	  	$	 	  	$	 
	 Principal amount of Note payable to Assignor
	  	$	 	  	$	 	  	$	 	  	$	 	  	$	 
						
	 ASSIGNEES:
	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 
	 Percentage interest assumed
	  	 	%	  	 	%	  	 	%	  	 	%	  	 	%
	 Outstanding principal amount of Advance assumed
	  	$	 	  	$	 	  	$	 	  	$	 	  	$	 
	 Principal amount of Note payable to Assignee
	  	$	 	  	$	 	  	$	 	  	$	 	  	$	 

 Effective Date (if other than date of acceptance by Administrative Agent): 
  
 7                         ,     

  
 Assignors                     
  

			
	
	 _________________________, as Assignor
 [Type or print legal name of Assignor]

		
	By	 	 
	 	 	Title:
	
	 Dated:                 
        ,     

	
	 _________________________, as Assignor
 [Type or print legal name of Assignor]

		
	By	 	 
	 	 	Title:
	
	 Dated:                 
        ,     

	
	 _________________________, as Assignor
 [Type or print legal name of Assignor]

		
	By	 	 
	 	 	Title:
	
	 Dated:                 
        ,     

	7	This date should be no earlier than five Business Days after the delivery of this Assignment and Acceptance to the Administrative Agent. 

 Assignees                     
  

			
	
	 _________________________, as Assignee
 [Type or print legal name of Assignee]

		
	By	 	 
	 	 	Title:
	
	 Dated:                 
        ,     

	
	 Lending Office:

	
	 _________________________, as Assignee
 [Type or print legal name of Assignee]

		
	By	 	 
	 	 	Title:
	
	 Dated:                 
        ,     

	
	 Lending Office:

	
	 _________________________, as Assignee
 [Type or print legal name of Assignee]

		
	By	 	 
	 	 	Title:
	
	 Dated:                 
        ,     

	
	 Lending Office:

			
	 Accepted 8[and Approved] this         
 day of
            ,         

	
	 MERRILL LYNCH CAPITAL CORPORATION,
as Administrative Agent

		
	By	 	 
	 	 	 Title:

	
	9 [Approved this
         day of                 ,         
	
	 MADISON RIVER TELEPHONE COMPANY LLC

		
	By	 	 
	 	 	 Title: ]

	8	Required if the Assignee is an Eligible Assignee solely by reason of clause (h) of the definition of “Eligible Assignee.” 

  

	9	See footnote 8. 

  
 EXHIBIT C 

FORM OF 
 SOLVENCY CERTIFICATE

  
 Certificate of Chief Financial Officer 

 
 MADISON RIVER TELEPHONE COMPANY LLC 
  
 I, Paul Sunu, hereby certify that I am the Chief Financial Officer of Madison
River Telephone Company LLC, a Delaware limited liability company (the “Company”), and that I am duly authorized to execute this Solvency Certificate on behalf of the Company, which is being delivered pursuant Section
3.01(a)(vi) of the Credit Agreement dated as of December 22, 2004 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among the Company, the various financial
institutions and other Persons as are, or may from time to time become, parties thereto (collectively, the “Lenders”) and Merrill Lynch Capital Corporation, as administrative agent for each of the Lenders (in such capacity,
the “Administrative Agent”). Unless otherwise defined herein, terms defined in the Credit Agreement are used herein as therein defined. 
  

I do hereby further certify that: 
  
 On the date hereof, (a) the fair value of the property of the Company is greater than the total amount of liabilities, including, without limitation,
contingent liabilities, of the Company, (b) the present fair salable value of the assets of the Company is not less than the amount that will be required to pay the probable liability of the Company on its debts as they become absolute and matured,
(c) the Company does not intend to, and does not believe that it will, incur debts or liabilities beyond the Company’s ability to pay such debts and liabilities as they mature and (d) the Company is not engaged in business or a transaction, and
is not about to engage in business or a transaction, for which the Company’s property would constitute an unreasonably small capital. 
  
 In reaching the conclusions set forth in this Solvency Certificate (a) the amount of contingent liabilities has been computed as the amount that, in light
of all the facts and circumstances existing at this time, represents the amount that can reasonably be expected to become an actual or matured liability and (b) the value to the Company of its investments in its Subsidiaries, and the assets and
financial resources of such Subsidiaries, have been taken into consideration. 
  
 Delivery of an executed counterpart of a signature page to this Solvency Certificate by telecopier shall be effective as delivery of a manually executed counterpart of this Solvency Certificate. 
  
 IN WITNESS WHEREOF, the undersigned has executed this Solvency Certificate to
the best of his knowledge on behalf of the Company this 22nd day of December 2004. 
  

			
	MADISON RIVER TELEPHONE COMPANY LLC
		
	By	 	 
	 	 	 Name: Paul Sunu

	 	 	 Title: Chief Financial OfficerEscrow Agreement

  
 Exhibit 10.9

  
 ESCROW AGREEMENT 
  
 THIS ESCROW AGREEMENT (this “Agreement”) is made and
entered into this 28th day of September, 1999, by and among MADISON RIVER TELEPHONE COMPANY, LLC, a Delaware
limited liability company (“MRTC”), GULF MERGER CORPORATION, an Alabama corporation (“GMC”), GULF COAST SERVICES, INC., an Alabama corporation (“GCSI”), the members of all of the
issued and outstanding capital stock of GCSI (the “GCSI Stockholders”), and REGIONS BANK, an Alabama banking corporation (“Escrow Agent”), MRTC, GMC, GCSI, the GCSI Stockholders and Escrow Agent are
hereinafter sometimes referred to, collectively, as the “Parties.” 
  
 WHEREAS, on even date herewith, GMC will merge with and into GCSI pursuant to the terms of that certain Agreement and Plan of Merger dated May 9, 1999, by and between MRTC and GCSI, as amended by that certain
First Amendment to Agreement and Plan of Merger dated July 2, 1999, that certain Second Amendment to Agreement and Plan of Merger dated August 24, 1999, and that certain Third Amendment to Agreement and Plan of Merger dated September 28th, 1999 (the “Merger Agreement”); and 
  
 WHEREAS, as specified in the Merger Agreement, there are certain issues pertaining to GCSI and its subsidiary
corporations which remain unresolved as of the date of this Agreement and which likely will remain unresolved as of the date of the Closing under the Merger Agreement; and 
  
 WHEREAS, GCSI wishes to provide a fund to pay various amounts due as set forth below; and 
  
 WHEREAS, GCSI has represented to MRTC that GCSI has in place various
insurance policies insuring GCSI, GTC, their officers and directors, and has represented to MRTC that GCSI has obtained binders for aggregate insurance coverage of $10,000,000 (the “Insurance Policies”); and 
  
 WHEREAS, the Merger Agreement contemplates the execution and delivery
of this Agreement and the deposit by Regions Bank, as Paying Agent under that certain Paying Agent Agreement of even date herewith, with Escrow Agent the Escrow Amount in the sum of $25,000,000 (the “Escrow Fund”), which amount
shall be available to provide for the payment of any amount due with respect to the matters set forth in this Escrow Agreement. 
  
 NOW, THEREFORE, in consideration of the promises and mutual covenants and agreements contained herein, and other good and valuable consideration,
the receipt and sufficiency of which are acknowledged, the Parties hereby agree as follows: 
  
 1. Capitalized Terms. Capitalized terms used in this Agreement and not defined herein shall have the respective meanings ascribed to such terms in the Merger Agreement. 

 2. Appointment of Escrow Agent. MRTC, GMC, GCSI and the GCSI Stockholders hereby
irrevocably appoint Escrow Agent to receive, hold, administer, safeguard and disburse the Escrow Fund, as hereinafter defined, in accordance with this Agreement, and Escrow Agent hereby accepts such appointment, all subject to and upon the terms and
conditions set forth herein. 
  
 3. Establishment of
Escrow Fund. Upon receipt of the Escrow Fund and immediately following the Effective Time, Paying Agent shall transfer and deliver to Escrow Agent immediately available funds in an amount equal to the Escrow Fund, which the Parties agree shall
be $25,000,000. Escrow Agent hereby agrees to receive, hold, administer, safeguard and disburse the Escrow Fund pursuant to the terms and conditions of this Agreement. 
  
 4. Escrow Committee. The Escrow Committee shall consist of the following members: a representative of MRTC, a
representative of the GCSI Stockholders and a third party designated by the members of the Escrow Committee. The third member of the Escrow Committee shall be a qualified person with prior judicial experience or with other relevant experience. Such
third member shall not have previously represented the MRTC, GCSI or its subsidiaries, or any shareholder or ESOP participant. The reasonable fees and expenses of such third member shall be paid out of the Escrow pursuant to the terms of a written
agreement approved by the other members of the Escrow Committee. Such third member may be removed by agreement of the MRTC and the representative of the GCSI Stockholders, for any or no reason, upon seven (7) days’ notice. The representative of
the majority shareholders, who shall initially be selected by Marjorie Y. Snook, shall be replaced only upon nomination of a replacement by Ms. Snook and confirmed by a majority vote of the GCSI stockholders voting. The representative of the GCSI
Stockholders and MRTC may receive reimbursement for all expenses associated with their work on the Escrow Committee, as provided herein. Except as otherwise specified herein, all actions taken by the Escrow Committee must be confirmed in writing by
a majority of all members. 
  
 5. Investment of Escrow
Fund. At the Escrow Committee’s written request, Escrow Agent shall invest the Escrow Fund in one or more permitted investments reasonably satisfactory to the Parties; provided, however, that the terms and conditions of the investments
shall be such as to permit Escrow Agent to make prompt payment of the Escrow Fund, as necessary. Notwithstanding the foregoing, the permitted investments shall include only the following types of investments: (a) bonds, notes, debentures, stock or
other securities or obligations issued by or guaranteed by the United States government or any agency or instrumentality thereof; (b) bonds, notes, debentures, stock, commercial paper, subordinated capital certificates or other securities or
obligations of institutions whose senior unsecured debt obligations are rated by at least two nationally recognized rating organizations in either of its two highest categories; (c) any deposit that is fully insured by the United States government;
and (d) any mutual funds comprised primarily of the permitted investments listed in (a), (b) and (c) of this Section 5. Escrow Agent shall distribute one half of all net income and earnings on the Escrow Fund to the GCSI Stockholders at least
quarterly on a prorata basis based on the number of issued 

  

 2 

 
and outstanding GCSI Shares immediately prior to the Effective Time. The remaining one-half of such net income shall be added to the Escrow Fund. 

 
 6. Escrow Fund. The Parties agree that the Escrow Fund shall be
held and disbursed by Escrow Agent under the following terms and conditions: 
  
 (a) Through a disbursement notice signed only by Paul H. Sunu of MRTC or such other person designated in writing by MRTC to Escrow Agent from time to time, MRTC may draw upon the Escrow Fund to pay expenses
(including, but not limited to, attorneys’ fees but excluding any allocation of costs of MRTC or GCSI salary or general overhead expenses) incurred by MRTC, GCSI or any of their subsidiaries or affiliates, in connection with investigating,
defending, settling or prosecuting any action, suit, proceeding, declaratory judgment action, claim, counterclaim, dispute or litigation (other than claims covered under the workers’ compensation laws of the State of Alabama) (individually or
collectively, “Proceedings”) which: 
  
 (1) as of this date have a court docket number; or 
  
 (2) (i) arise from claims, counterclaims, crossclaims or circumstances referenced in any Proceedings described in (1) above; and (ii) which are filed on behalf of any current or future claimant in such Proceedings
described in (1) above or any similarly situated claimant in any future Proceedings. 
  
 MRTC shall give the Escrow Committee advance notice of at least fifteen (15) business days prior to any such payments, along with copies of supporting invoices. The Escrow Committee shall have the right to object to any payment which it
decides is not a bona fide payment to a third party, and shall have the right to obtain reimbursement of such payments either from the party to whom payment was made or the party on whose behalf payment was made. In addition, MRTC may draw
upon the Escrow Fund to pay insurance premiums for a sixty-month, $10,000,000 supplemental directors and officers liability policy. It is the understanding of the Parties that such policy will not cover any matter related to a Proceeding.

  
 (b) The Escrow Fund may also be drawn upon to
pay any or all of the following amounts, through a disbursement notice signed by a majority of the members of the Escrow Committee: 
  
 (1) any deficiency in the Minimum Cash Amount as determined by the Final Closing Date Financial Statements; 
  
 (2) unpaid obligations of GCSI (or amounts required to
settle any such matters) set forth in subsections 5.1(b)(i), (ii) and (iii) of the Merger Agreement, as determined by a Final Closing Date Financial Statements; and 
  
 (3) amounts constituting or satisfying any and all actions, suits, proceedings, claims, liabilities,
demands, settlements, assessments, judgments, interest, penalties, costs and expenses, including reasonable attorneys’ fees (whether or not incurred in connection with investigating, defending, settling or prosecuting any action, 

  

 3 

 
suit, proceeding or claim against MRTC, GCSI, the ESOP or any affiliate, officer director or employee thereof hereunder), incident to any Proceedings
referred to in paragraph (a) of this Section 6. 
  
 (c) In its sole discretion, and through a disbursement notice signed only by MRTC, MRTC may, upon confirmation of irrevocable insurance coverage, without reservation, instruct Paying Agent to release an amount equal to the directors and
officers insurance coverage in place and available to satisfy any amounts payable under each of the provisions of this Section 6. 
  
 (d) The Escrow Fund shall, upon notice to the Escrow Agent by NIRTC, be drawn upon to satisfy any final non-appealable judgment, plus
post-judgment interest, if applicable, against MRTC, GCSI, the ESOP or any of their affiliates, officers, directors, or trustees, or employees in any Proceedings referred to in paragraph (a) of this Section 6. 
  
 (e) After (and not before) the earlier of: (i) a final,
non-appealable resolution of all proceedings referred to in paragraph (a) of this Section 6 filed within three (3) years from the date hereof; (ii) a final non-appealable resolution of all claims arising from claims or circumstances described in any
Proceedings which as of this date have a court docket number and which is binding, as a matter of law, on all Claimants; or (iii) three (3) years, in the event that no claims referred to in paragraph (a) of this Section 6 are pending and no claims
described in (e)(ii) above are filed within such three (3) year period; and upon finalization and payment of all matters to be determined under paragraph (a) of this Section 6, the Escrow Committee shall cause the Escrow Agent to disburse the
remainder of the Escrow Fund. Upon receipt of a disbursement notice signed by all members of the Escrow Committee, the Escrow Agent shall pay to MRTC any amounts due under this Agreement, and thereafter, to each GCSI Stockholder that has previously
surrendered, or subsequently surrenders, such certificate(s) (other than certificates representing Dissenting Shares) a pro rata share (based on the number of issued and outstanding GCSI Shares immediately prior to the Effective Time) of the
remaining Escrow Fund for each GCSI Share represented by the surrendered certificate(s), which amount shall be paid by Escrow Agent within five (5) business days of receipt of the disbursement notice. The disbursement notice shall specify any and
all amounts to be paid and the recipients of the amounts specified in such notice. 
  
 (f) For amounts referenced in paragraphs (b)(1) and (2) of this Section 6, such amounts must exceed a threshold of $25,000.00 per item and
such amounts may not exceed $2,000,000 in the aggregate. 
  
 7.
Duties of Escrow Agent. In administering and disbursing the Escrow Fund pursuant to this Agreement, Escrow Agent agrees that it will comply with the following duties and obligations: 
  
 (a) Escrow Agent shall make payments from the Escrow Fund
only as specified in this Agreement. 
  

 4 

 (b) Each document received by Escrow Agent relating to its duties hereunder shall be
dated and time stamped when received. 
  
 (c)
Escrow Agent shall forward to the other Parties a quarterly report of the payments made, the payees thereof and the then balance in the Escrow Fund. 
  
 8. Escrow Agent. 
  
 (a) Escrow Agent shall be entitled to rely upon any signature, paper or other document believed by it to be genuine, without actual notice
of changed conditions or status of any person, firm or corporation executing the same and shall not be required to audit or substantiate the proper application of any funds disbursed pursuant to a properly executed disbursement notice. 

 
 (b) When all funds received or to be received by Escrow
Agent hereunder, or pursuant hereto, have been released, delivered or otherwise disposed of as provided herein, this Agreement shall thereupon terminate and Escrow Agent shall thereby be released and discharged from all further liability hereunder.

  
 (c) The Parties do hereby acknowledge that
Escrow Agent is a disinterested stakeholder and has no personal interest in this transaction. As a part of the consideration for Escrow Agent’s agreeing to act as Escrow Agent hereunder, MRTC, GMC and GCSI do hereby agree that Escrow Agent
shall not be required to bring, to defend, or to otherwise enter into any litigation or legal proceedings of any type arising out of or which may in any way be connected with or affected by this Agreement or the performance of it. However, Escrow
Agent may, in its sole discretion, bring, defend or otherwise participate in any such litigation or legal proceedings, and in such event, all of its costs, expenses, liabilities and reasonable attorney’s fees shall be borne by and properly paid
or refunded out of the Escrow Fund, upon demand. 
  
 (d) In addition to all other rights and remedies which Escrow Agent might have hereunder, at any time which Escrow Agent is not reasonably sure of its rights or duties hereunder, or which there is a dispute or disagreement among or between
any persons or parties whomsoever respecting any rights in or to the funds held hereunder or in any way affecting Escrow Agent’s rights or duties hereunder, then Escrow Agent shall be entitled to file any interpleader proceeding, to pay said
funds into any court, to bring actions for declaratory judgements or for any other quasi-judicial relief or resolution of the disagreement, or it may decline performance from any duties hereunder and may call upon any interested party to seek
judicial resolution; 
  
 (e) Escrow Agent shall
be entitled to compensation (as payment in full) for the services to be rendered by Escrow Agent hereunder in the amount of five percent (5%) of the gross investment income generated under Section 5, which compensation shall be paid from the Escrow
Fund. Escrow Agent also shall be entitled to reimbursement from the Escrow Fund for all reasonable expenses, disbursements and advances incurred or made by Escrow Agent in performance of its duties hereunder (including reasonable fees, expenses and
disbursements of its counsel). 
  

 5 

 9. Ownership for Tax Purposes. The Parties agree that, for purposes of federal, state and
other taxes based on income, the GCSI Stockholders will be treated as the owner of the Escrow Fund, and that the GCSI Stockholders will report all income, if any, that is earned on, or derived from, the Escrow Fund as its income in the taxable year
or years in which such income is properly includible and pay any taxes attributable thereto. 
  
 10. Notices. All notices, requests, demands, claims and other communications under this Agreement will be in writing. Any notice, request, demand, claim or other communication hereunder shall be deemed
duly given upon personal delivery to the intended recipient, or if (and then two (2) business days after) it is sent by registered or certified mail, return receipt requested, postage prepaid, and addressed to the intended recipient as set forth
below: 
  
 If to MRTC, GMC or GCSI 
  
 Madison River Telephone Company, LLC 
 103 South Fifth Street 
 Mebane, North
Carolina 27302 
 Attention: Paul H. Sunu 
 (919) 563-1500 
 (919) 563-4993 fax 
  
 With a copy to: 
  
 Bruce F. Metge, Esq. 
 Vice President and
General Counsel 
 Madison River Communications, Inc. 
 103 South Fifth Street 
 Mebane, North Carolina 27302 
 (919) 563-8247 
 (919) 563-4993 fax

 metgeb@gallatinriver.com e-mail 
  
 Larry E. Robbins, Esq. 
 Wyrick, Robbins,
Yates & Ponton, LLP 
 Suite 300 
 4101 Lake Boone Trail 
 Raleigh, North Carolina 27607 
 (919) 781-4000 
 (919) 781-4865 fax 
 lrobbins@wyrick.com e-mail 
  

 6 

 If to the GCSI Stockholders: 
  
 Marjorie Y. Snook, as a Trustee of the John McClure Snook 
 Irrevocable Trust and the John McClure Snook Testamentary Trust 
 c/o M. Mort Swaim, Esq. 
 235 West Laurel Avenue 
 Foley, Alabama 36535 
 (334) 943-3999

 (334) 943-3137 fax 
 swaimlaw@gulftel.com e-mail 
  
 Lyman F. Holland, Jr.,
as a Trustee of the John McClure Snook 
 Irrevocable Trust and the John McClure Snook Testamentary Trust 
 Hand Arendall, L.L.C. 
 Suite 3000 

1st National Bank
Building 
 P.O. Box 123 
 Mobile,
Alabama 36601 
 (334) 432-5511 
 (334) 361-6375 fax 
 lymanh@handarendall.com e-mail 
  
 Robert L. Mackey, Jr., as Trustee 
 Of the Gulf Telephone Company 
 Employee Stock Ownership Plan 
 Gulf Coast Services, Inc. 
 P.O. Drawer 670

 Foley, Alabama 36535 
 (334)
952-5350 
 (334) 943-7254 fax 
  
 With a copy to: 
  
 Mark D. Wilkerson, Esq. 
 Brantley &
Wilkerson, P.C. 
 P.O. Box 830 
 Montgomery, Alabama 36101-0830 
 (334) 265-1500 
 (334) 265-0319 fax 
 mark@brantleywilkerson.com e-mail 
  

 7 

 C. Fred Daniels, Esq. 
 Cabaniss, Johnston, Gardner, Dumas & O’Neal 
 2001 Park Place North 
 Suite 700 
 Birmingham, Alabama 35203

 (205) 716-5200 
 (205) 716-5389
fax 
 cfd@cabaniss.com e-mail 
  
 William H. Wasden, Esq. 
 Pierce, Ledyard,
Lata & Wasden P.C. 
 Suite 500 
 41 North Beltline Highway 
 P.O. Box 16046 
 Mobile, Alabama 36616 
 (334) 344-5151 
 (334) 344-9696 fax 
 hww@pllaw.com e-mail

  
 If to RTFC: 
  
 Rural Telephone Finance Cooperative 
 Woodland Park 
 2201 Cooperative Way

 Herndon, Virginia 20171-3025 
 Attention: Loan Officer 
 (703) 709-6780 fax 
  
 If to Escrow Agent: 
  
 Regions Bank 
 Trust Department 
 104 St. Francis Street, 2nd Floor 
 P.O. Box 2527 
 Mobile, Alabama 36602 
 Attention: Robert B. Doyle 
 (334) 690-1452 
 (334) 690-1591 fax 
 bdoyle@regionsbank.com e-mail 
  

 8 

 With a copy to: 
  

R. Gregory Watts 
 Johnstone, Adams,
Bailey, Gordon & Harris, L.L.C. 
 Royal St. Francis Building 
 104 St. Francis Street 
 Mobile, Alabama 36602

 (334) 432-7682 
 (334) 432-2800
fax 
 RGW@JohnstoneAdams.com e-mail 
  
 11. Jurisdiction, Service of Process. Any action or proceeding seeking to enforce any provision of, or based on any right arising out of,
this Agreement shall be brought against any of the Parties in the courts of the State of Alabama, County of Baldwin, or, if it has or can acquire jurisdiction, in the United States District Court for the Southern District of Alabama, which courts
shall have exclusive jurisdiction over and venue for any such litigation. Each of the Parties hereby expressly consents to the jurisdiction of such courts (and of the appropriate appellate courts) in any such action or proceeding and expressly
waives any objection to venue laid therein. Process in any action or proceeding referred to in the preceding sentence may be served on any Party anywhere in the world. 
  
 12. Counterparts. This Agreement may be executed in one or more counterparts, each of which will be deemed to
be an original but all of which, will constitute one and the same instrument. 
  
 13. Headings. The section headings in this Agreement are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. 
  
 14. Severability. Any provision of this Agreement which may be
determined by competent authority to be 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 not invalidate or render unenforceable such provision in any other jurisdiction. It is expressly understood, however, that the Parties intend each and every provision of this
Agreement to be valid and enforceable and hereby knowingly waive all rights to object to any provision of this Agreement. 
  
 15. Assignment. This Agreement shall be binding upon and inure to the benefit of the Parties and their respective successors and assigns. No
Party may assign any of its rights or obligations under this Agreement without the express, prior written consent of all other Parties. 
  
 16. Waiver. The rights and remedies of the Parties to this Agreement are cumulative and not alternative. Neither the failure nor any delay
by any Party in exercising any right, power or privilege under this Agreement or the documents referred 

  

 9 

 
to in this Agreement will operate as a waiver of such right, power or privilege, and no single or partial exercise of any such right, power or privilege will
preclude any other or further exercise of such right, power or privilege or the exercise of any other right, power or privilege. To the maximum extent permitted by applicable law, (a) no claim or right arising out of this Agreement or the documents
referred to in this Agreement can be discharged by one Party, in whole or in part, by a waiver or renunciation of the claim or right unless in a writing signed by the other Parties; (b) no waiver that may be given by a Party will be applicable
except in the specific instance for which it is given; and (c) no notice to or demand on one Party will be deemed to be a waiver of any obligation of such Party or of the right of the Party giving such notice or demand to take further action without
notice or demand as provided in this Agreement or the documents referred to in this Agreement. 
  
 17. Exclusive Agreement and Modification. This Agreement supersedes all prior agreements among the Parties with respect to the subject matter of this Agreement and constitutes (along with the documents
referred to in this Agreement) a complete and exclusive statement of the terms of the agreement between the Parties with respect to its subject matter. This Agreement may of be amended except by a written agreement executed by MRTC, GMC, GCSI, the
GCSI Stockholders, RTFC and Escrow Agent. 
  
 18.
Governing Law. This Agreement shall be governed by the laws of the State of Alabama, without regard to conflicts of law principles. 
  
 [THE NEXT PAGE IS THE SIGNATURE PAGE] 
  

 10 

 IN WITNESS WHEREOF, the Parties have executed and delivered this Escrow Agreement of the day and
year first written above. 
  

					
	“MRTC”
	
	MADISON RIVER TELEPHONE, LLC,
	a Delaware limited liability company
		
	By:	 	/s/    J. Stephen Vanderwoude
	 	 	 Its:
	 	 Chairman & CEO

  

					
	“GMC”
	 
	 GULF MERGER CORPORATION, an
 Alabama corporation

		
	By:	 	/s/    J. Stephen Vanderwoude
	 	 	 Its:
	 	 Chairman & CEO

  

					
	“GCSI”
	
	 GULF COAST SERVICES, INC., an
 Alabama corporation

		
	By:	 	/s/    Marjorie Y. Snook
	 	 	 Its:
	 	 President/CEO

  

					
	“Escrow Agent”
	
	 REGIONS BANK, an Alabama banking
 corporation

		
	By:	 	/s/    Robert B. Doyle
	 	 	 Its:
	 	 Vice President & Trust Officer

					
	“Paying Agent”
	
	REGIONS BANK, as Alabama banking corporation
		
	By:	 	/s/    Robert B. Doyle
	 	 	 Its:
	 	 Vice President & Trust Officer

  

			
	“GCS/Stockholders”
		
	 /s/    Marjorie Y. Snook
	 	 (SEAL)

	 Marjorie Y. Snook
	 	 
		
	 /s/    Dennis Leonard Kaiser
	 	 (SEAL)

	 Dennis Leonard Kaiser
	 	 
		
	 /s/    Robert Howard Younce
	 	 (SEAL)

	 Robert Howard Younce
	 	 
		
	 /s/    Dale Eugene Younce
	 	 (SEAL)

	 Dale Eugene Younce
	 	 
		
	 /s/    Robert L. Mackey, Jr.
	 	 (SEAL)

	 Robert L. Mackey, Jr.
	 	 
		
	 /s/    William Richard Mitchem
	 	 (SEAL)

	 William Richard Mitchem
	 	 
		
	 /s/    Esther Holman Williams
	 	 (SEAL)

	 Esther Holman Williams
	 	 
		
	 /s/    Woodard S. Setzer
	 	 (SEAL)

	 Woodard S. Setzer
	 	 
		
	 /s/    Harold Killian
	 	 (SEAL)

	 Harold Killian
	 	 

  

 12 

			
		
	 /s/    Ann Byrd
	 	 (SEAL)

	 Ann Byrd
	 	 

  

			
	 Gulf Telephone Company
 Restated Employee Stock Ownership Plan

		
	By:	 	 /s/    Robert L. Mackey, Jr.

			
		
	By:	 	 /s/    Esther H. Williams

			
		
	By:	 	 /s/    Ann Byrd

  

			
	 Trusts Created Under John McClure Snook
 Irrevocable Trust Agreement dated
 December 23, 1993

		
	By:	 	 /s/    Marjorie Snook

	 	 	 Co-Trustee

			
		
	By:	 	 /s/    Lyman F. Holland Jr.

	 	 	 Co-Trustee

  

 13

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