Document:

EX-10.2

 Exhibit 10.2 

WARRANTS PURCHASE AGREEMENT 

DATED AS OF AUGUST 5, 2015 

BY AND BETWEEN 
 LUMOS
NETWORKS CORP. 
 AND 

LUMOS INVESTMENT HOLDINGS, LTD. 

 TABLE OF CONTENTS 

 

									
	ARTICLE I PURCHASE AND SALE OF WARRANTS	  	1	 
		 	SECTION 1.1	  	PURCHASE AND SALE OF WARRANTS	  	 	1	  
		 	SECTION 1.2	  	CLOSING	  	 	1	  
		 	SECTION 1.3	  	DEFINED TERMS USED IN THIS AGREEMENT	  	 	2	  
	ARTICLE II REPRESENTATIONS AND WARRANTIES OF THE COMPANY	  	 	5	  
		 	SECTION 2.1	  	SUBSIDIARIES	  	 	5	  
		 	SECTION 2.2	  	ORGANIZATION AND POWER	  	 	5	  
		 	SECTION 2.3	  	AUTHORIZATION, ENFORCEMENT	  	 	5	  
		 	SECTION 2.4	  	NO CONFLICT	  	 	6	  
		 	SECTION 2.5	  	GOVERNMENT APPROVALS	  	 	6	  
		 	SECTION 2.6	  	AUTHORIZED AND OUTSTANDING STOCK	  	 	7	  
		 	SECTION 2.7	  	SEC DOCUMENTS; FINANCIAL INFORMATION	  	 	8	  
		 	SECTION 2.8	  	 MATERIAL CHANGES; UNDISCLOSED EVENTS, LIABILITIES
OR DEVELOPMENTS
	  	 	8	  
		 	SECTION 2.9	  	LITIGATION	  	 	8	  
		 	SECTION 2.10	  	COMPLIANCE WITH LAWS	  	 	9	  
		 	SECTION 2.11	  	TAXES	  	 	9	  
		 	SECTION 2.12	  	INTELLECTUAL PROPERTY	  	 	9	  
		 	SECTION 2.13	  	CONTRACTS AND COMMITMENTS	  	 	10	  
		 	SECTION 2.14	  	EMPLOYEE MATTERS	  	 	10	  
		 	SECTION 2.15	  	TRANSACTIONS WITH AFFILIATES	  	 	10	  
		 	SECTION 2.16	  	INSURANCE	  	 	10	  
		 	SECTION 2.17	  	INVESTMENT COMPANY ACT	  	 	11	  
		 	SECTION 2.18	  	MARGIN REGULATIONS	  	 	11	  
		 	SECTION 2.19	  	NASDAQ	  	 	11	  
		 	SECTION 2.20	  	APPLICATION OF TAKEOVER PROTECTIONS	  	 	11	  
		 	SECTION 2.21	  	ISSUANCES EXEMPT	  	 	11	  
		 	SECTION 2.22	  	NO INTEGRATED OFFERING	  	 	11	  
		 	SECTION 2.23	  	INTERNAL ACCOUNTING AND DISCLOSURE CONTROLS	  	 	12	  
		 	SECTION 2.24	  	OFF BALANCE SHEET ARRANGEMENTS	  	 	12	  
		 	SECTION 2.25	  	TRANSFER TAXES	  	 	13	  
		 	SECTION 2.26	  	MANIPULATION OF PRICE	  	 	13	  
		 	SECTION 2.27	  	ANTI-DILUTION PROVISIONS	  	 	13	  
		 	SECTION 2.28	  	OWNERSHIP OF PROPERTY	  	 	13	  
		 	SECTION 2.29	  	WAIVER OF SECTION 203	  	 	13	  
		 	SECTION 2.30	  	FORM S-3 ELIGIBILITY	  	 	14	  
		 	SECTION 2.31	  	NO OTHER REPRESENTATIONS OR WARRANTIES	  	 	14	  
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE PURCHASER	  	 	14	  
		 	SECTION 3.1	  	ORGANIZATION AND POWER	  	 	14	  
		 	SECTION 3.2	  	AUTHORIZATION, ENFORCEMENT	  	 	14	  
		 	SECTION 3.3	  	NO CONFLICT	  	 	15	  
		 	SECTION 3.4	  	GOVERNMENT APPROVALS	  	 	15	  
		 	SECTION 3.5	  	INVESTMENT REPRESENTATIONS	  	 	15	  
		 	SECTION 3.6	  	NO OTHER REPRESENTATIONS OR WARRANTIES	  	 	16	  

									
	ARTICLE IV COVENANTS OF THE PARTIES	  	 	16	  
		 	SECTION 4.1	  	REGULATORY	  	 	16	  
		 	SECTION 4.2	  	PUBLICITY	  	 	17	  
		 	SECTION 4.3	  	USE OF PROCEEDS	  	 	17	  
		 	SECTION 4.4	  	PURCHASER TRANSACTION EXPENSES	  	 	17	  
		 	SECTION 4.5	  	PLACEMENT AGENT’S FEES	  	 	18	  
		 	SECTION 4.6	  	ANTI-TAKEOVER LAW	  	 	18	  
		 	SECTION 4.7	  	CORPORATE OPPORTUNITIES	  	 	18	  
		 	SECTION 4.8	  	FURTHER ASSURANCES	  	 	18	  
	ARTICLE V MISCELLANEOUS	  	 	18	  
		 	SECTION 5.1	  	EXECUTION AND COUNTERPARTS	  	 	18	  
		 	SECTION 5.2	  	GOVERNING LAW	  	 	19	  
		 	SECTION 5.3	  	WAIVER OF JURY TRIAL	  	 	19	  
		 	SECTION 5.4	  	ENTIRE AGREEMENT; NO THIRD PARTY BENEFICIARY	  	 	19	  
		 	SECTION 5.5	  	NO RECOURSE	  	 	19	  
		 	SECTION 5.6	  	NOTICES	  	 	20	  
		 	SECTION 5.7	  	SUCCESSORS AND ASSIGNS	  	 	21	  
		 	SECTION 5.8	  	HEADINGS	  	 	21	  
		 	SECTION 5.9	  	AMENDMENTS AND WAIVERS	  	 	21	  
		 	SECTION 5.10	  	INTERPRETATION; ABSENCE OF PRESUMPTION	  	 	21	  
		 	SECTION 5.11	  	SEVERABILITY	  	 	22	  
		 	SECTION 5.12	  	ENFORCEMENT	  	 	22	  
		 	SECTION 5.13	  	REMEDIES; SURVIVAL OF REPRESENTATIONS AND WARRANTIES	  	 	22	  
		 	SECTION 5.14	  	STOCK SPLITS, STOCK DIVIDENDS, ETC.	  	 	23	  

 SCHEDULES 
  

			
	Schedule 2.1	  	Subsidiaries of the Company
	Schedule 2.6(c)	  	Other Securities and Rights
	Schedule 2.7	  	SEC Documents
	Schedule 2.12	  	Intellectual Property
	Schedule 2.28	  	Ownership of Property

 EXHIBITS 
  

			
	Exhibit A	  	Third Amendment to the Credit Agreement
	Exhibit B	  	Form of Warrant for Common Stock
	Exhibit C	  	Form of Investors Rights Agreement
	Exhibit D	  	Form of Opinion of Counsel to the Company
	Exhibit E	  	Form of Press Release
	Exhibit F	  	Form of 8-K

  
 ii 

 WARRANTS PURCHASE AGREEMENT 

This Warrants Purchase Agreement, dated as of August 5, 2015 (this “Agreement”), is by and between Lumos Networks Corp.,
a Delaware corporation (the “Company”), and Lumos Investment Holdings, Ltd., a Cayman Islands exempted company (the “Purchaser”). 

WHEREAS, the Purchaser desires to purchase from the Company, and the Company desires to issue and sell to the Purchaser, warrants (the
“Warrants”) to purchase up to 5.5 million shares (subject to adjustment as provided in the Warrants) of the Company’s Common Stock (the “Warrant Shares”), par value $0.01 per share (the “Common
Stock”), all in accordance with this Agreement; and 
 WHEREAS, immediately prior to the entry into this Agreement, the Company
shall have caused its wholly-owned subsidiary to enter into an amendment (the “Third Amendment”), in the form set forth in Exhibit A hereto, to that certain Credit Agreement, dated as of April 30, 2013, among Lumos
Networks Operating Company (the “Borrower”), the Subsidiary Guarantors (as defined therein), the Lenders (as defined therein), the Initial Issuing Bank (as defined therein) and CoBank, ACB, as collateral agent and administrative
agent (the “Administrative Agent”), as amended by (i) the First Amendment Agreement, dated as of October 8, 2013, among the Borrower, the Subsidiary Guarantors listed on the signature pages thereto, and the Negative
Pledgors (as defined therein), the Administrative Agent and the Lenders (as defined therein), (ii) the Joinder Agreement and Second Amendment to Credit Agreement, dated as of January 2, 2015, among the Borrower, the New Term Lenders (as
defined therein), the Subsidiary Guarantors (as defined therein), the Negative Pledgors (as defined therein), and each of Fifth Third Bank, Royal Bank of Canada and Branch Banking and Trust Company, as documentation agents, and the Lenders (as
defined therein) (the “Credit Agreement”). 
 In consideration of the promises and the mutual representations, warranties,
covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 

ARTICLE I 
 PURCHASE AND
SALE OF WARRANTS 
 Section 1.1 Purchase and Sale of Warrants. Subject to the terms herein, at the Closing (as defined
below), the Company shall issue and sell the Warrants to the Purchaser and the Purchaser shall purchase the Warrants from the Company for the aggregate purchase price of US$10,000,000 (the “Purchase Price”). The Warrants shall be in
the form of Exhibit B hereto. 
 Section 1.2 Closing. The closing (the “Closing”) shall take place
(and shall be deemed to occur) at 8:30 a.m. on August 6, 2015, New York City time at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, New York by electronic exchange of documents and signatures, or
at such other time and place as the parties may mutually agree in writing. The date on which the Closing occurs is referenced to as the “Closing Date”. At the Closing: 

(a) The Company shall duly execute and deliver the Warrants in the same form attached hereto as Exhibit B, to the Purchaser in
exchange for the payment by the Purchaser of the Purchase Price to the Company. 

  
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 (b) Purchaser shall, in full satisfaction of its payment of the Purchase Price pursuant to clause
(a) above, deliver or cause to be delivered, the Closing Payment by wire transfer of immediately available funds to an account previously designated in writing by the Company to the Purchaser. 

(c) The parties hereto shall enter into the Investors Rights Agreement, dated as of the Closing Date, by and between the Company and the
Purchaser in the form attached hereto as Exhibit C (the “Investors Rights Agreement”). 
 (d) The Warrant
Shares shall be duly authorized and reserved for issuance upon exercise of the Warrants, and when so issued shall be validly issued, fully paid and non-assessable. 

(e) Pursuant to the terms of the Investors Rights Agreement, the Company shall appoint to the Board, such appointment to be effective
immediately following the Closing, each of William Pruellage and Peter Aquino as a director of the Company to serve until his successor is elected and qualified or his resignation or removal in accordance with the Amended and Restated Bylaws of the
Company (the “Bylaws”). 
 (f) The Company shall deliver an opinion to the Purchaser, dated as of the date of the Closing,
from counsel to the Company, in the form attached hereto as Exhibit D (and the Company hereby instructs its counsel to deliver such opinion to the Purchaser). 

(g) The Company shall provide evidence reasonably satisfactory to the Purchaser that the listing of additional shares notification with
respect to the Warrant Shares that may be issuable upon exercise of the Warrant from time to time has been filed with NASDAQ and that such Warrant Shares have been officially approved for listing on NASDAQ prior to the Closing. 

(h) The Company shall have delivered evidence reasonably satisfactory to the Purchaser that the Third Amendment has been executed and
delivered and is in full force and effect as of the entry into this Agreement. 
 Section 1.3 Defined Terms Used in this
Agreement. In addition to the terms defined above and elsewhere herein, each of the following terms takes its meaning as defined below. 

“Affiliate” of any Person means any other Person that directly, or indirectly through one or more intermediaries, controls,
or is controlled by, or is under common control with, such Person. The term “control” (including the terms “controlling,” “controlled by” and “under common control with”) as used with respect to any Person
means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 

“Board” means the Board of Directors of the Company. 

  
 2 

 “Business Day” means any day other than a Saturday, Sunday or holiday on
which banks in New York City are required or permitted to be closed. 
 “Certificate of Incorporation” means
the Amended and Restated Certificate of Incorporation, effective as of October 31, 2011, of the Company. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“FINRA” means the Financial Industry Regulatory Authority, Inc.  

“GAAP” means generally accepted accounting principles as in effect in the United States. 

“Governmental Entity” means any national, federal, state, municipal, local, territorial, foreign or other government
or any department, commission, board, bureau, agency, regulatory authority or instrumentality thereof, or any court, judicial, administrative or arbitral body or public or private tribunal. 

“Intellectual Property Rights” means all registered copyrights, copyright registrations and copyright applications,
trademark registrations and applications for registration, patents and patent applications, trademarks, service marks, service names, trade names, Internet domain names and any other intellectual property rights or licenses that are used by the
Company or its Subsidiaries in their business as presently conducted, including all: (i) databases, computer programs and other computer software user interfaces, know-how, trade secrets, customer lists, proprietary technology, processes and
formulae, source code, object code, algorithms, development tools, instructions and templates created by or on behalf of the Company or its Subsidiaries; and (ii) inventions, trade dress, logos and designs created by or on behalf or any of the
Company or any of its Subsidiaries. 
 “Investment Company Act” mean the Investment Company Act of 1940, as
amended. 
 “Lien” means any mortgage, pledge, security interest or other encumbrance. 

“Material Adverse Effect” means any material adverse effect with respect to: (i) the business, financial
condition, prospects or results of operations of the Company and its Subsidiaries taken as a whole; or (ii) the Company’s ability to perform fully on a timely basis its obligations under this Agreement or any of the Related Agreements. 

 “NASDAQ” means The NASDAQ Stock Market, but if The NASDAQ Stock Market is not then the principal U.S. trading
market for the Common Stock, then “NASDAQ” shall be deemed to mean the principal U.S. national securities exchange registered under the Exchange Act on which the Common Stock, or such other applicable common stock, is then traded
or, if such Common Stock or other applicable common stock is not then listed or admitted to trading on any national securities exchange, then the OTC Bulletin Board.  

“Person” means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust,
unincorporated organization, association, corporation, institution, public benefit corporation, Governmental Entity or any other entity. 

  
 3 

 “Proxy Statement” means the Company’s definitive proxy statement for
its 2015 annual meeting of stockholders, as filed with the SEC on March 20, 2015. 
 “Representative”
means, with respect to a particular Person, any director, officer, manager, partner, employee, agent, consultant, advisor or other representative of such Person, including legal counsel, accountants and financial advisors. 

“Restricted Affiliate” means: (i) any Person who is directly or indirectly responsible for the formation,
management, operations, oversight or administration of the Purchaser (including any principal, partner or employee of any such Person); (ii) any investment fund directly or indirectly formed or controlled by any one or more Persons referred to
in the preceding clause (i); and (iii) any direct or indirect Subsidiary of any Person referred to in the preceding clauses (i) or (ii) in which any one or more such Persons have the right to elect (directly or indirectly) a majority
of the board of directors (or a comparable governing body with a different name) of such Subsidiary or own a majority of the voting securities entitled to elect the board of directors (or comparable governing body with a different name) of such
Subsidiary. 
 “SEC” means the U.S. Securities and Exchange Commission. 

“SEC Documents” means all filings under the Securities Act or under Section 13 or 15(d) of the Exchange Act
(including all financial statements, amendments, exhibits and schedules thereto and the results of the Company’s operations and cash flow contained therein) filed by the Company with the SEC on or after January 1, 2014. 

“Securities” means collectively, the Warrants and the Warrant Shares.  

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

“Stock Plan” means the Lumos Networks Corp. 2011 Equity and Cash Incentive Plan, as amended. 

“Subsidiary” has the meaning set forth in Rule 1-02(x) of Regulation S-X promulgated by the SEC. 

“Tax” means all federal, state, local, foreign and other taxes, including income, gross receipts, franchise, property,
sales, withholding, payroll, use and employment taxes and custom duties, together with any interest or penalties thereon or other similar additions to tax. 

“Transaction Expenses Cap” means US$100,000. 

  
 4 

 ARTICLE II 

REPRESENTATIONS AND WARRANTIES OF THE COMPANY 

The Company represents and warrants to the Purchaser that, on the date hereof, except as set forth in the SEC Documents filed before the date
of this Agreement (other than disclosures in any “risk factors” or “forward looking statements” contained therein or any other disclosure that is predictive or forward looking in nature): 

Section 2.1 Subsidiaries. Schedule 2.1 hereto contains a true and complete list of all Subsidiaries of the Company.
The Company owns, directly or indirectly, all of the capital stock or other equity interests of the Subsidiaries listed on Schedule 2.1 hereto free and clear of all Liens, rights of first refusal, preemptive rights or other restrictions,
and all of the issued and outstanding shares of capital stock of such Subsidiaries are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. Other than the Subsidiaries
listed on Schedule 2.1 hereto, the Company owns no direct or indirect equity interest in any other Person. 
 Section 2.2
Organization and Power. The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the jurisdiction of its incorporation and has all requisite corporate power and authority to own its properties
and to carry on its business as presently conducted and as proposed to be conducted. Each of the Subsidiaries is a corporation or limited liability company duly incorporated or formed, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or formation and has all requisite corporate or limited liability company power and authority to own its properties and to carry on its business as presently conducted and as proposed to be conducted. Each of the
Company and its Subsidiaries is duly licensed or qualified to do business as a foreign corporation or limited liability company and is in good standing in each jurisdiction wherein the character of its property or the nature of the activities
presently conducted by it, makes such qualification necessary, except where the failure to so qualify has not had and would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. 

Section 2.3 Authorization, Enforcement. The Company has all necessary corporate right, power and authority and has taken all
necessary corporate action required for the due authorization, execution, delivery and performance by the Company of this Agreement, the Warrants and the Investors Rights Agreement and any other agreement or instrument executed by the Company in
connection herewith or therewith (collectively, the “Related Agreements”), and the completion by the Company of the transactions contemplated hereby and thereby and for the due authorization, reservation, issuance, sale and delivery
of the Warrants and the Warrant Shares. The issuance of the Securities does not require any further corporate action and is not subject to any preemptive right or rights of first refusal under the Certificate of Incorporation or any contract to
which the Company is a party. This Agreement and each of the Related Agreements have been duly executed and delivered by the Company. Assuming due execution and delivery thereof by each of the other parties thereto, this Agreement and the Related
Agreements to which the Company is a party will each be a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except as such enforceability may be limited by applicable laws relating to
bankruptcy, insolvency, reorganization, moratorium or other similar legal requirement relating to or affecting creditors’ rights generally and except as such enforceability is subject to general principles of equity (regardless of whether
enforceability is considered in a proceeding in equity or at law). 

  
 5 

 Section 2.4 No Conflict. The authorization, execution, delivery and performance by
the Company of this Agreement and the Related Agreements to which it is a party, and the completion by the Company of the transactions contemplated hereby and thereby, including the issuance of the Securities do not and will not: (i) violate,
conflict with or result in the breach of any provision of the Certificate of Incorporation and the Amended and Restated Bylaws of the Company; or (ii) with such exceptions that, individually or in the aggregate, are not reasonably likely to
have a Material Adverse Effect, whether after the giving of notice or the lapse of time or both: (a) violate any provision of, constitute a breach of, or default under, or result in or permit the cancellation, termination or acceleration of any
decree, judgment, order, law, treaty, rule, regulation or determination of any Governmental Entity having jurisdiction over the Company or its properties or assets; (b) violate any provision of, constitute a breach of, or default under, any
applicable state, federal or local law, rule or regulation; (c) result in the creation of any Lien upon any asset of the Company or its Subsidiaries or the suspension, revocation, material impairment, forfeiture or nonrenewal of any franchise,
permit, license or other right granted by a Governmental Entity to the Company or its Subsidiaries, other than Liens under federal or state securities laws; (d) violate any of the terms of any bond, debenture, indenture, credit agreement, note
or any other evidence of indebtedness (including the Credit Agreement and the Third Amendment thereto), or any agreement, stock option or other similar plan, lease, mortgage, deed of trust or other instrument (including any material contract of the
Company of the type described in the first sentence of Section 2.13) to which the Company is a party, by which the Company is bound, or to which any of the properties or assets of the Company is subject; (e) violate any of the terms
of any “lock-up” or similar provision of any underwriting or similar agreement to which the Company or any of its Subsidiaries is a party; or (f) violate any rule or regulation of FINRA or NASDAQ. Neither the Company nor any of its
Subsidiaries is in default (or, with the giving of notice or lapse of time, would be in default) (“Default”) under any indenture, mortgage, loan or credit agreement, note, contract, franchise, lease or other instrument to which the
Company or any of its Subsidiaries is a party or by which it or any of them may be bound (including the Credit Agreement), or to which any of the property or assets of the Company or any of its Subsidiaries is subject, except for such Defaults as
would not, individually or in the aggregate, result in a Material Adverse Effect. The Third Amendment has been executed and delivered and is in full force and effect as of the Closing of the transactions contemplated by this Agreement. 

Section 2.5 Government Approvals. No consent, approval, license or authorization of, or designation, declaration or filing with,
any Governmental Entity or other third-party is or will be required on the part of the Company in connection with the execution, delivery and performance by the Company of this Agreement and the Related Agreements to which the Company is a party, or
in connection with the issuance of the Securities, except for: (i) those which have already been made or granted; (ii) the filing of a current report on Form 8-K with the SEC; (iii) filings with applicable state securities
commissions; (iv) those which may be made or obtained following the Closing; (v) the listing of the Warrant Shares with NASDAQ; (vi) post-Closing filings as may be required to be made with the SEC and with any state or foreign blue
sky or securities regulatory authority; (vii) the filing with the SEC of one or more registration statements in accordance with the requirements of the Investors Rights Agreement; and (viii) as would not be reasonably likely, individually
or in the aggregate, to have a Material Adverse Effect. 

  
 6 

 Section 2.6 Authorized and Outstanding Stock 

(a) The authorized capital stock of the Company (immediately prior to the Closing) consists of 55,000,000 shares of Common Stock and 100,000
shares of the Company’s Preferred Stock, par value $0.01 per share (the “Preferred Stock”). 
 (b) As of
August 3, 2015, the issued and outstanding capital stock of the Company consists of 22,900,237 shares of Common Stock. There are no outstanding shares of Preferred Stock. As of August 3, 2015, the Company had reserved an aggregate of
5,500,000 shares of Common Stock for issuance to employees, directors and consultants pursuant to the Stock Plan, of which 2,193,450 shares of Common Stock are subject to outstanding, unexercised options as of such date under such Stock Plan. All of
the issued and outstanding shares of capital stock of the Company are duly and validly authorized and duly and validly issued and fully paid and non-assessable. The Warrant Shares have been reserved for issuance and, when issued upon exercise
thereof in accordance with the terms of the Warrants, will be duly and validly issued and fully paid and non-assessable and will be free and clear of any Lien or claim and will not be subject to any preemptive right, rights of first refusal or any
other restrictions on transfer under applicable law or any contract to which the Company is a party, other than those under applicable state, “blue sky,” and federal securities and anti-takeover laws. When issued in accordance with the
terms hereof, the Securities will be free and clear of all Liens imposed by or through the Company, except for restrictions imposed by federal or state securities or “blue sky” laws and except for those imposed pursuant to this Agreement.
The designations, powers, preferences, rights, qualifications, limitations and restrictions in respect of each class or series of capital stock of the Company are as set forth in the Certificate of Incorporation. 

(c) Except as provided in this Agreement or as set forth in Schedule 2.6(c) hereto, as of August 3, 2015: (i) no
subscription, warrant, option, convertible security or other right issued by the Company to purchase or acquire any shares of capital stock of the Company is authorized or outstanding; (ii) there is no option, warrant, calls, rights,
commitments or agreements of any character to which the Company is a party or by which either the Company is bound or obligating the Company to issue, deliver, sell, repurchase or redeem, or cause to be issued, delivered, sold, repurchased or
redeemed, any shares of the capital stock of the Company or obligating the Company to grant, extend or enter into any such option, warrant, call, right, commitment or agreement or to issue or distribute to holders of any shares of its capital stock
any evidences of indebtedness or assets of the Company; (iii) the Company has no obligation to pay any dividend or make any other distribution in respect thereof; and (iv) there are no agreements between the Company and any holder of its
capital stock relating to the acquisition, disposition or voting of the capital stock of the Company. No Person is entitled to any preemptive right or right of first refusal granted by the Company with respect to the issuance of any capital stock of
the Company and the issuance of the Securities issuable hereunder or pursuant to the Warrants will not trigger any anti-dilution or similar right that has not been properly waived. Except as provided in the Investors Rights Agreement and the
Shareholder Agreement, dated as of October 31, 2011, among the Company, Quadrangle Capital Partners LP and the other parties named therein, no Person has been granted rights by the Company with respect to the registration of any capital stock
of the Company under the Securities Act. 

  
 7 

 Section 2.7 SEC Documents; Financial Information. Except as set forth in Schedule
2.7, the Company has timely filed all SEC Documents required to be filed by the Company with the SEC pursuant to the Exchange Act and the Securities Act since January 1, 2014. As of their respective filing dates (or, if amended or
superseded by a filing prior to the date of this Agreement, on the date of such amended or superseded filing), the SEC Documents complied in all material respects with the requirements of the Securities Act, the Exchange Act and the rules and
regulations of the SEC thereunder applicable to such SEC Documents, and as of their respective dates none of the SEC Documents contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of the Company and its Subsidiaries included in the SEC Documents (the “Financial
Statements”) comply as of their respective dates in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto (except as may be indicated in the notes thereto or, in the case
of the unaudited statements, as permitted by Form 10-Q promulgated by the SEC), and present fairly in all material respects as of their respective dates the consolidated financial position of the Company and its Subsidiaries as at the dates thereof
and the consolidated results of their operations and their consolidated cash flows for each of the respective periods, in conformity with GAAP (subject, in the case of unaudited financial statements, to normal and recurring year-end adjustments).

 Section 2.8 Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited Financial
Statements, except as specifically disclosed in a subsequent SEC Document (other than disclosures in any “risk factors” or “forward looking statements” contained therein or any other disclosure that is predictive or
forward-looking in nature) filed prior to the date hereof: (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect; (ii) each of the Company and its
Subsidiaries has not incurred any liability (contingent or otherwise) other than liabilities (a) incurred in the ordinary course of business consistent with past practice, (b) not required by GAAP to be reflected on a consolidated balance
sheet (or the notes thereto) or disclosed in filings made with the SEC; (c) reflected or reserved against in the most recent balance sheet included in the SEC Documents, (d) which have been discharged or paid in full prior to the date of
this Agreement and the Related Agreements, and (e) incurred pursuant to the transactions contemplated by this Agreement and (iii) the Company has not declared, or made, any dividend or distribution of cash or other property to its
stockholders or purchased, redeemed or made any agreement to purchase or redeem any shares of its capital stock. The Company does not have pending before the SEC any request for confidential treatment of information or any comment letters from the
SEC regarding the SEC Documents. 
 Section 2.9 Litigation. There is no litigation, action, suit, investigation or governmental
proceeding pending or, to the knowledge of the Company, threatened, against the Company or its Subsidiaries or affecting any of the properties or assets of the Company or its Subsidiaries that could, individually or in the aggregate, be reasonably
expected to result in a Material Adverse Effect. Neither the Company nor its Subsidiaries is in default with respect to any order, writ, injunction, decree, ruling or decision of any court, commission, board or other government agency that is
expressly applicable to the Company or its Subsidiaries or any of their assets or property, except in each case as would not, individually or in the aggregate, result in or reasonably be expected to result in a Material Adverse Effect. 

  
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 Section 2.10 Compliance with Laws. The business of the Company and its Subsidiaries
are not being conducted in violation of any law, ordinance or regulation of any Governmental Entity, except for violations that, either singly or in the aggregate, would not have, or reasonably be expected to have, a Material Adverse Effect on the
Company. Neither the Company nor any Subsidiary has received notification from any Governmental Entity (a) asserting a violation of any law, statute, ordinance or regulation or the terms of any judgments, orders, decrees, injunctions or writs
applicable to the conduct of its business, (b) threatening to revoke any license, franchise, permit or government authorization, or (c) restricting or in any way limiting its operations as currently conducted or proposed to be conducted,
except in each case as would not, individually or in the aggregate, result in or reasonably be expected to result in a Material Adverse Effect. 

Section 2.11 Taxes. The Company and its Subsidiaries: (i) have filed all Tax returns required to be filed within the
applicable periods for such filings (with due regard to any extension); (ii) have paid all Taxes and other governmental assessments required to be paid; and (iii) have reserved in the Financial Statements an amount adequate for the payment
of all Taxes for periods subsequent to the periods to which such returns, reports or declarations apply, except for any such failures to file or pay that would not individually or in the aggregate have a Material Adverse Effect. 

Section 2.12 Intellectual Property. Except as set forth in Schedule 2.12, all Intellectual Property Rights purported to be
owned by the Company or its Subsidiaries that were developed, worked on or otherwise held by any employee, officer, consultant or otherwise are owned free and clear by the Company or its Subsidiaries (as the case may be) by operation of law or have
been validly assigned to the Company or its Subsidiaries (as the case may be) other than those Intellectual Property Rights where the failure to own or assign such rights would not, individually or in the aggregate, be reasonably likely to have a
Material Adverse Effect. The Intellectual Property Rights are sufficient in all material respects to carry on the business of the Company and its Subsidiaries as presently conducted and as proposed to be conducted and the Company has taken
commercially reasonable security measures to protect the secrecy, confidentiality and value of all of its material Intellectual Property Rights. To the knowledge of the Company, with such exceptions as are not, individually or in the aggregate,
reasonably likely to have a Material Adverse Effect, the Intellectual Property Rights purported to be owned by the Company or its Subsidiaries do not infringe the intellectual property rights of any third party. Neither the Company nor its
Subsidiaries has received any written notice or other written claim from any third party: (i) asserting that any of the Intellectual Property Rights purported to be owned by the Company or its Subsidiaries infringe any intellectual property
right of such third party; (ii) challenging the validity, effectiveness or ownership by the Company or its Subsidiaries of any of the Intellectual Property Rights; or (iii) asserting that the Company or its Subsidiaries is in material
default with respect to any license granting Intellectual Property Rights to the Company or its Subsidiaries other than, in each such case, if the assertion, challenge or allegation in any such notice or claim were accurate or true, would not,
individually or in the aggregate, be reasonably likely to have a Material Adverse Effect. The Company has no knowledge of any material infringement or improper use by any third party of any of the Company’s Intellectual Property Rights, other
than any such infringement or improper use as would not, individually or in the aggregate, be reasonably likely to have a Material Adverse Effect. 

  
 9 

 Section 2.13 Contracts and Commitments. All of the material contracts (as such term
is defined in Item 601(b)(10) of Regulation S-K of the SEC) of the Company or its Subsidiaries in effect on the date of this Agreement that are required to be described in the SEC Documents, or to be filed as exhibits thereto, have been so
described or filed and are in full force and effect and, to the knowledge of the Company, upon completion of the transactions contemplated by this Agreement and the Related Agreements, will continue in full force and effect, without penalty or
adverse consequence. Neither the Company nor its Subsidiaries nor, to the knowledge of the Company, any other party is in breach of or in default under any such contract, other than, in each such case, as would not, individually or in the aggregate,
be reasonably likely to have a Material Adverse Effect. 
 Section 2.14 Employee Matters. Except as would not, individually or
in the aggregate, be reasonably likely to have a Material Adverse Effect, the Company has described in, or filed as an exhibit to, the SEC Documents filed prior to the date of this Agreement all of the following types of documents, agreements, plans
or arrangements that are required by federal securities laws to be described in, or filed as an exhibit to, the SEC Documents: employment agreements, consulting agreements, deferred compensation, pension or retirement agreements or arrangements
(including all “employee pension benefit plans” as defined in Section 3(2) of ERISA, bonus, incentive or profit-sharing plans or arrangements, or labor or collective bargaining agreements in effect by the Company and its Subsidiaries)
(the “ERISA Documents”). Except for any compliance failures that, individually or in the aggregate, are not reasonably likely to have a Material Adverse Effect: (i) the Company and its Subsidiaries are in compliance in all
material respects with all applicable laws and regulations relating to labor, employment, fair employment practices, terms and conditions of employment, and wages and hours; and (ii) each such ERISA Document has been administered in compliance
with its terms and all applicable requirements of ERISA. To the Company’s knowledge, none of the Company’s or its Subsidiaries’ employees are obligated under any contract (including licenses, covenants or commitments of any nature) or
other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would interfere with the use of his or her employment obligations to the Company or its Subsidiaries or that would conflict with the
Company’s and its Subsidiaries’ business as now conducted or proposed to be conducted, except for such contracts and other agreements, judgments, decrees and orders that would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. The Company is not a party to any collective bargaining agreement. 
 Section 2.15 Transactions
with Affiliates. Except as disclosed in the Proxy Statement, as of March 20, 2015 (the date the Proxy Statement was filed with the SEC), there were no loans, leases or other agreements, understandings or continuing transactions between the
Company or its Subsidiaries, on the one hand, and any officer or director of the Company or its Subsidiaries or any Person that the Company believes is the owner of five percent or more of the outstanding Common Stock or any corporation,
partnership, trust or other entity in which any such officer, director, or stockholder has a substantial interest or is an officer, director, trustee or partner, or any respective family member or Affiliate of such officer, director or stockholder,
on the other hand, that were required by federal securities laws to be disclosed in the Proxy Statement. 
 Section 2.16
Insurance. Each of the Company and its Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts 

  
 10 

 
as the Company reasonably believes are prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. All such insurance is fully in force, except where the
failure to be in full force has not had and would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. The Company has no reason to believe that it will not be able to renew or extend its existing
insurance coverage as and when such coverage expires or will not be able to obtain similar coverage from similar insurers as may be necessary to continue its business without an increase in cost significantly greater than general increases in cost
experienced for similar companies in similar industries with respect to similar coverage. 
 Section 2.17 Investment Company
Act. The Company is not, and immediately after giving effect to the sale of the Warrants in accordance with this Agreement and the application of the proceeds thereof will not be required to be registered as, an “investment company” or
a company “controlled” by an “investment company,” within the meaning of the Investment Company Act. 

Section 2.18 Margin Regulations. The Company is not engaged in the business of extending credit for the purpose of purchasing or
carrying margin stock (within the meaning of Regulation U issued by the Board of Governors of the Federal Reserve System), and no proceeds of any Warrants will be used in a manner as would cause the transactions contemplated hereby to violate
Regulation T, U or X of the Board of Governors of the Federal Reserve System. 
 Section 2.19 NASDAQ. As of the date
hereof, the Common Stock is listed on NASDAQ, and no event has occurred, and the Company is not aware of any event that is reasonably likely to occur, that would result in the Common Stock being delisted from NASDAQ. The sale and issuance of the
Securities complies with all rules and regulations of NASDAQ. 
 Section 2.20 Application of Takeover Protections. There is no
control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s charter documents or the laws of its state of incorporation in
effect as of the date hereof that is or would become applicable to the Purchaser as a result of the Purchaser and the Company fulfilling their obligations or exercising their rights under this Agreement, including as a result of the Company’s
issuance of the Common Stock issuable upon exercise of the Warrants and the Purchaser’s ownership of the Common Stock issuable upon exercise of the Warrants. 

Section 2.21 Issuances Exempt. Assuming the truth and accuracy of the representations and warranties of the Purchaser contained in
Article III hereof, the offer, sale, and issuance of the Securities will be exempt from the registration requirements of the Securities Act, and will have been registered or qualified (or are exempt from registration and qualification)
under the registration, permit or qualification requirements of all applicable state securities laws (or qualification under Blue-sky laws). 

Section 2.22 No Integrated Offering. Assuming the truth and accuracy of the representations and warranties of the Purchaser
contained in Article III hereof, neither the Company, nor any of its Affiliates or any other Person acting on the Company’s behalf, has 

  
 11 

 
directly or indirectly engaged in any form of general solicitation or general advertising with respect to the Securities nor have any of such Persons made any offers or sales of any security or
solicited any offers to buy any security under circumstances that would require registration of the Securities under the Securities Act or cause this offering of Securities to be integrated with any prior offering of securities of the Company for
purposes of the Securities Act or any applicable stockholder approval provisions, including, without limitation, NASD Rule 4350(i) or any similar rule. 

Section 2.23 Internal Accounting and Disclosure Controls. (a) The Company and each of its Subsidiaries maintain a system of
internal control over financial reporting (as such term is defined in Rule 13a-15(f) and Rule 15d-15(f) of the Exchange Act) that has been designed by, or under the supervision of, the Company’s principal executive and principal financial
officers sufficient to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States,
including, but not limited to, internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorization, (ii) transactions are
recorded as necessary to permit preparation of the Company’s financial statements in conformity with accounting principles generally accepted in the United States and to maintain accountability for its assets, (iii) access to the
Company’s assets is permitted only in accordance with management’s general or specific authorization, and (iv) the recorded accountability for the Company’s assets is compared with existing assets at reasonable intervals and
appropriate action is taken with respect to any differences. There are no material weaknesses in the Company’s internal controls. 

(b) (i) The Company and each of its Subsidiaries maintain disclosure controls and procedures (as such term is defined in
Rule 13a-15(e) under the Exchange Act), (ii) such disclosure controls and procedures are designed to ensure that the information required to be disclosed by the Company and its Subsidiaries in the reports filed or to be filed or submitted
under the Exchange Act is accumulated and communicated to management of the Company and its Subsidiaries, including their respective principal executive officers and principal financial officers, as appropriate, to allow timely decisions regarding
required disclosures to be made, and (iii) such disclosure controls and procedures are effective in all material respects to perform the functions for which they were established. 

(c) (i) The Company has not been advised of or become aware of (A) any significant deficiencies in the design or operation of
internal controls that has not been adequately remediated or that could adversely affect the ability of the Company or any of its Subsidiaries to record, process, summarize and report financial data, or any material weaknesses in internal controls,
and (B) any fraud, whether or not material, that involves management or other employees who have a significant role in the internal controls of the Company and each of its Subsidiaries; and (ii) there has been no change in the
Company’s internal controls over financial reporting that has materially affected, or is reasonably likely to materially adversely affect, the Company’s or its Subsidiaries’ internal controls over financial reporting. 

Section 2.24 Off Balance Sheet Arrangements. There is no transaction, arrangement or other relationship between the Company or any
of its Subsidiaries and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in the Company’s SEC Documents and is not so disclosed, other than as would not have a Material Adverse Effect. 

  
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 Section 2.25 Transfer Taxes. All stock transfer or other taxes (other than income or
similar Taxes) which are required to be paid in connection with the transactions contemplated hereby have been fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with. 

Section 2.26 Manipulation of Price. The Company has not, and to its knowledge, none of its Affiliates or anyone else acting on its
behalf has: (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the transactions contemplated hereby; or (ii) sold, bid
for, purchased, or paid any compensation for soliciting purchases for the transactions contemplated hereby. 
 Section 2.27
Anti-Dilution Provisions. There is no anti-dilution provision under any agreement to which the Company is party or to which any assets of the Company are subject that is or would become effective as a result of the Purchaser and the Company
fulfilling their obligations or exercising their rights under this Agreement, including as a result of the Company’s issuance of the Securities issuable hereunder and under the Warrants and the Purchaser’s ownership of the Securities
issuable hereunder. 
 Section 2.28 Ownership of Property. Except as set forth in the Financial Statements or in Schedule
2.28, the Company has: (i) good and marketable fee simple title to its owned real property, if any, free and clear of all liens, except for liens which do not individually or in the aggregate have a Material Adverse Effect; (ii) except
as would not, individually or in the aggregate, have a Material Adverse Effect, a valid leasehold interest in all leased real property, and each of such leases is valid and enforceable in accordance with its terms (subject to laws of general
application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing specific performance, injunctive relief or other equitable remedies, and to limitations of public policy) and is in full force and effect, and
(iii) good title to, or valid leasehold interests in, all of its other properties and assets, free and clear of all liens, except for liens disclosed in the SEC Documents or which otherwise do not individually or in the aggregate have a
Material Adverse Effect. 
 Section 2.29 Waiver of Section 203 and Section 122(17). The Company represents and warrants to
the Purchaser that the Board has heretofore taken all necessary action (i) to approve, and has approved, for purposes of Section 203 of the Delaware General Corporation Law (“DGCL”) (including any successor statute thereto
(“Section 203”)) or any other similar applicable Law, the Purchaser’s becoming, together with its Restricted Affiliates, an “interested stockholder” within the meaning of Section 203, such that, after
the Closing, neither Section 203 nor any other similar applicable Law will be applicable to the Purchaser or any “business combination” within the meaning of Section 203 (or its analogue with respect to any similar such law) that
may take place between the Purchaser and/or its Restricted Affiliates, on the one hand, and the Company, on the other, and (ii) in accordance with, and to the fullest extent permitted by, Section 122(17) of the DGCL (or any such
successor statute to Section 122(17) of the DGCL), to renounce and waive any right to, or expectation of, corporate 

  
 13 

 
opportunities that William Pruellage may be presented or develop, and renounce and waive any duty Mr. Pruellage may have during his tenure on the Board in such form of resolution of the
Board as adopted and delivered to the Purchaser prior to the date hereof. 
 Section 2.30 Form S-3 Eligibility. The Company is
currently eligible under the eligibility requirements of General Instruction I to Registration Statement on Form S-3 to register the resale of its Common Stock on a registration statement on Form S-3 under the Securities Act. To the
knowledge of the Company, there exist no facts or circumstances that would reasonably be expected to prohibit or delay the preparation and filing of a registration statement on Form S-3 with respect to the Warrant Shares in accordance with the terms
of this Agreement and the Related Agreements. 
 Section 2.31 No Other Representations or Warranties. Except for the
representations and warranties of the Company expressly set forth in this Article II (as modified by the Schedules hereto), with respect to the transactions contemplated by this Agreement, the Company (i) expressly disclaims any
representation or warranties of any kind or nature, express or implied, including with respect to the condition, value or quality of the Company and its Subsidiaries or any of the assets or properties of the Company and its Subsidiaries, and
(ii) specifically disclaims any representation or warranty of merchantability, usage, suitability or fitness for any particular purpose with respect to any of the assets or properties of the Company and its Subsidiaries. Except for the
representations and warranties set forth within this Article II, the Company does not make any representation or warranty to the Purchaser regarding any projection or forecast regarding future results or activities or the probable success or
profitability of the Company. 
 ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER 

The Purchaser represents and warrants to the Company that: 

Section 3.1 Organization and Power. The Purchaser is an entity duly formed, validly existing and in good standing under the laws
of the jurisdiction of its formation and has all requisite power and authority to own its properties and to carry on its business as presently conducted. 

Section 3.2 Authorization, Enforcement. The Purchaser has all necessary power and authority, and has taken all necessary action
required for the due authorization, execution, delivery and performance by the Purchaser of this Agreement and the Related Agreements to which it is a party and the completion by the Purchaser of the transactions contemplated hereby and thereby.
This Agreement and each of the Related Agreements to which the Purchaser is a party have been duly executed and delivered by the Purchaser. Assuming due execution and delivery thereof by the other Persons contemplated to be party thereto, this
Agreement and the Related Agreements to which the Purchaser is a party will each be a valid and binding obligation of the Purchaser enforceable against the Purchaser in accordance with its terms, except as such enforceability may be limited by
applicable laws relating to bankruptcy, insolvency, reorganization, moratorium or other similar legal requirement relating to or affecting creditors’ rights generally and except as such enforceability is subject to general principles of equity
(regardless of whether enforceability is considered in a proceeding in equity or at law). 

  
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 Section 3.3 No Conflict. The authorization, execution, delivery and performance by
the Purchaser of this Agreement and the Related Agreements to which it is a party, and the completion by the Purchaser of the transactions contemplated hereby and thereby do not and will not: (i) violate or result in the breach of any provision
of the certificate of limited partnership and limited partnership agreement (or in the case of an entity other than a limited partnership, the organizational documents) of the Purchaser; or (ii) with such exceptions that, individually
or in the aggregate, are not reasonably likely to have a material adverse effect on its ability to perform its obligations under this Agreement and the Related Agreements to which it is a party, whether after the giving of notice or the lapse of
time or both: (a) violate any provision of, constitute a breach of, or default under, or result in or permit the cancellation, termination or acceleration of any material contract to which the Purchaser is a party; or (b) violate any
provision of, constitute a breach of, or default under, any federal, state or local law, rule or regulation applicable to the Purchaser. 

Section 3.4 Government Approvals. No consent, approval, license or authorization of, or designation, declaration or filing with,
any Governmental Entity is or will be required on the part of the Purchaser in connection with the execution, delivery and performance by the Purchaser of this Agreement and the Related Agreements to which it is a party, except for: (i) those
which have already been made or granted; (ii) any filing with the SEC to report the Purchaser’s ownership of any Warrants, if applicable; (iii) those which may be made or obtained following the Closing; or (iv) those where the
failure to obtain such consent, approval or license would not have a material adverse effect on the ability of the Purchaser to perform its obligations hereunder. 

Section 3.5 Investment Representations. 

(a) The Purchaser is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D promulgated under the
Securities Act. 
 (b) The Purchaser understands that the Securities are “restricted securities” under applicable U.S. federal and
state securities laws. The Purchaser acknowledges that the Company has no obligation to register or qualify the Securities for resale, except as set forth in the Investors Rights Agreement with respect to the Warrant Shares. The Purchaser has been
advised by the Company that the Securities have not been registered under the Securities Act, that the Securities will be issued on the basis of the statutory exemption provided by Section 4(a)(2) under the Securities Act or Regulation D
promulgated thereunder, or both, relating to transactions by an issuer not involving any public offering and under similar exemptions under certain state securities laws, that this transaction has not been reviewed by, passed on or submitted to any
U.S. federal or state agency or self-regulatory organization where an exemption is being relied upon, and that the Company’s reliance thereon is based in part upon the representations made by the Purchaser in this Agreement and the Related
Agreements. The Purchaser acknowledges that it has been informed by the Company of, or is otherwise familiar with, the nature of the limitations imposed by the Securities Act and the rules and regulations thereunder on the transfer of securities.

  
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 (c) The Purchaser is purchasing the Warrants for its own account and not with a view to, or for
sale in connection with, any distribution thereof in violation of U.S. federal or state securities laws. 
 (d) The source of the funds used
by the Purchaser to pay the Purchase Price for the Warrants does not include assets of (i) any employee benefit plan within the meaning of Section 3(3) of ERISA that is not exempt from the coverage of ERISA, (ii) any plan as defined
in Section 4975(e)(1) of the Internal Revenue Code of 1986, as amended, or (iii) any governmental plan as defined in Section 3(32) of ERISA. 

Section 3.6 No Other Representations or Warranties. Except for the representations and warranties of the Purchaser expressly set
forth in this Article III (as modified by the Schedules hereto), with respect to the transactions contemplated by this Agreement, the Purchaser (i) expressly disclaims any representation or warranties of any kind or nature, express or
implied, including with respect to the condition, value or quality of the Purchaser and its Subsidiaries or any of the assets or properties of the Purchaser and its Subsidiaries, and (ii) specifically disclaims any representation or warranty of
merchantability, usage, suitability or fitness for any particular purpose with respect to any of the assets or properties of the Purchaser and its Subsidiaries. 

ARTICLE IV 
 COVENANTS OF
THE PARTIES 
 Section 4.1 Regulatory. 

(a) For so long as the Purchaser, or any of its Affiliates holds any portion of the Warrants or Warrant Shares, the Company shall promptly,
upon the request of the Purchaser, use its commercially reasonable efforts to cooperate with, and assist the Purchaser in any regulatory consent, filing, notification or clearance that the Purchaser, upon advice of counsel, determines is advisable
as to or by reason of, (i) the Purchaser’s nominees being directors on the Board, or (ii) its ownership or holding, or potential ownership or holding, of securities, or any investment in, in each case, whether of debt or equity,
of the Company. Each party shall promptly furnish to the other party all necessary information and provide reasonable assistance as the other party may reasonably request in connection with clauses (i) and (ii) above. Each party
shall keep the other party apprised of the status of any communication with, and any inquiries or requests for additional information from, any Governmental Entity (or other Person regarding any of the transactions contemplated by this Agreement or
the Related Agreements) with respect to clauses (i) and (ii) above and shall use its respective commercially reasonable efforts to comply promptly with any such inquiry or request (and, unless otherwise prohibited by law, provide copies of
any such communications that are in writing). 
 (b) To the extent necessary to enable the Purchaser from time to time following the Closing
to exercise all, or a portion, of its then-outstanding Warrants for Warrant Shares without the filing of a notification under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”) at the time of any such desired
exercise, the Company shall 

  
 16 

 
cooperate with, and assist, the Purchaser to complete (i) promptly following the Closing, a notification to comply with the requirements of the HSR Act, and (ii) prior to the expiration
of any such notification, a subsequent notification to comply with the requirements of the HSR Act. 
 (c) All fees, costs and expenses
incurred in connection with Section 4.1(a) and Section 4.1(b) above shall be paid by the party incurring such costs or expenses. 

Section 4.2 Publicity. The parties hereby agree that the Company shall issue a press release in the form of Exhibit E
hereto on the date of this Agreement and, on the Closing Date or no later than the first trading day following the Closing Date, the Company shall file a Current Report on Form 8-K substantially in the form of Exhibit F (the “Form
8-K”) describing the terms of the transactions contemplated by this Agreement and the Related Agreements in the form required by the Exchange Act, and attaching the material transaction documents. 

Section 4.3 Use of Proceeds. The Company covenants and agrees, and the Purchaser acknowledges, that no less than US$7,000,000 of
the proceeds of the Warrants shall be used by the Company for any lawful corporate purpose (including with respect to Section 4.4 herein) and (ii) up to US$3,000,000 of the proceeds of the Warrants shall be used by the Company to
pay down existing and outstanding debt issued under, and pursuant to, the Credit Agreement. 
 Section 4.4 Purchaser Transaction
Expenses. 
 (a) The Company shall reimburse the Purchaser (and shall be responsible for discharging) all reasonable and documented (or
invoiced) out-of-pocket fees, costs and expenses incurred by the Purchaser, including the fees and expenses of attorneys, accountants and other outside professionals and consultants engaged by the Purchaser and/or its Affiliates, in connection with
the preparation, negotiation and execution of this Agreement, the Related Agreements and the transactions contemplated hereby and thereby, including any preliminary discussions or undertakings with respect to such transactions (but excluding any
“success” or similar transaction fees payable by the Purchaser (or an Affiliate of Purchaser) to any financial advisors engaged in connection with the transactions contemplated hereby) (the “Purchaser Transaction
Expenses”)). 
 (b) With respect to any Purchaser Transaction Expenses that are either evidenced by an invoice therefore and for
which such invoice has been delivered by the Purchaser to the Company, or for which reasonable documentation has been made available by the Purchaser to the Company (the aggregate amounts evidenced thereby up to the Transaction Expenses Cap, the
“Closing Transaction Expenses Amount”), in either case on or prior to the Closing Date, the Company hereby directs the Purchaser to withhold on the Company’s behalf, from the amount of the Purchase Price an amount equal to the
Closing Transaction Expenses Amount in satisfaction of its reimbursement obligations pursuant to Section 4.4(a) above, subject to Section 4.4(c) below (for purposes of this Agreement, the amount of the Purchase Price less the
Closing Transaction Expenses Amount being the “Closing Payment”). 
 (c) With respect to any Purchaser Transaction Expenses
for which the Purchaser delivers the invoice or for which reasonable documentation is delivered or made 

  
 17 

 
available to the Company after the Closing, the Company shall reimburse Purchaser for, or pay as directed by the Purchaser, such Purchaser Transaction Expenses within ten Business Days of
delivery by the Purchaser of the invoice or documentation referenced above, by wire transfer in immediately available funds; but, in no event shall the Company be obligated to reimburse (or pay on behalf of) the Purchaser for any Purchaser
Transaction Expenses, in the aggregate pursuant to this clause 4.4(c) (after taking into account the payment of the Closing Transaction Expenses Amount pursuant to Section 4.4(b)) in excess of the Transaction Expenses Cap.
Notwithstanding the foregoing, nothing in this Section 4.4(c) shall relieve the Company from reimbursing or paying the Purchaser’s fees or expenses as explicitly contemplated in any of the Related Agreements. 

Section 4.5 Placement Agent’s Fees. The Company shall be responsible for the payment of any placement agent’s fees,
financial advisory fees, or brokers’ commissions, in each case payable to third parties retained by the Company, relating to or arising out of the transactions contemplated by this Agreement. The Company shall pay, and hold the Purchaser
harmless against, any liability, loss or expense (including reasonable attorney’s fees and out-of-pocket expenses) arising in connection with any such claim for fees arising out of the transactions contemplated by this Agreement. 

Section 4.6 Anti-Takeover Laws. In the event that any anti-takeover law or other similar Law is or becomes applicable to the
Purchaser by reason of holding the Warrants, Warrant Shares, or the exercise and/or holding of for Warrant Shares, the Company and the Purchaser shall use their respective reasonable efforts to ensure any such Law is not applicable to the Purchaser
or the holding or exercise of such securities. 
 Section 4.7 Corporate Opportunities. The Company shall, through action by the
Board, take all necessary action to renounce and waive the corporate opportunity doctrine as it may otherwise apply to (or duty may arise with respect to) any director nominee designated or appointed by the Purchaser (in connection with any director
designee or appointee that is a partner, employee or professional of the Purchaser or any of its Affiliates), in each case, in substance no less permissive to such Person than otherwise contemplated by the waiver in Section 2.29(ii)
hereof, and to the fullest extent permitted by applicable Law. 
 Section 4.8 Further Assurances. After the Closing, and for no
further consideration, each of the parties shall, and shall cause its Affiliates to, execute, acknowledge and deliver such assignments, transfers, consents, assumptions and other documents and instruments and take such other actions as may
reasonably be requested to more effectively consummate the transactions contemplated by this Agreement and the Related Agreements. In addition, prior to the Closing, the Board will not take any action that may frustrate the transactions contemplated
by this Agreement and the benefits to be derived therefrom by the Purchaser. 
 ARTICLE V 

MISCELLANEOUS 

Section 5.1 Execution and Counterparts. This Agreement may be executed in multiple counterparts, all of which when taken together
shall be considered one and the same agreement 

  
 18 

 
and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that any signature is delivered by facsimile transmission or by e-mail
delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or
“.pdf” signature page were an original thereof. 
 Section 5.2 Governing Law. This Agreement is to be construed in
accordance with and governed by the internal laws of the State of New York without giving effect to any choice of law rule that would cause the application of the laws of any jurisdiction other than the internal laws of the State of New York to the
rights and duties of the parties. All disputes and controversies arising out of or in connection with this Agreement shall be resolved exclusively in (i) the Supreme Court of the State of New York, New York County, and (ii) the
United States District Court for the Southern District of New York, and each party agrees to submit to the jurisdiction of said courts and agrees that venue shall lie exclusively with such courts. 

Section 5.3 Waiver of Jury Trial. Each party hereby waives, and agrees to cause each of its Affiliates to waive, to the fullest
extent permitted by applicable Law, any right it may have to a trial by jury in respect of any litigation directly or indirectly arising out of, under or in connection with this Agreement, the Related Agreements or any transaction contemplated
hereby or thereby. Each party (i) certifies that no representative of any other party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing waiver and
(ii) acknowledges that it and the other parties hereto and thereto have been induced to enter into this Agreement and the Related Agreements by, among other things, the mutual waivers and certifications in this Section 5.3. 

Section 5.4 Entire Agreement; No Third Party Beneficiary. This Agreement and the Related Agreements contain the entire agreement
by and among the parties with respect to the subject matter hereof and all prior negotiations, writings and understandings relating to the subject matter of this Agreement are merged in and are superseded and canceled by, this Agreement and the
Related Agreements. 
 Section 5.5 No Recourse. This Agreement may only be enforced against, and any action that may be based
upon, arise out of or relate to this Agreement, or the negotiation, execution or performance of this Agreement may only be made against the entities that are expressly identified as parties hereto (or their successors and permitted assigns, and none
of (a) the Purchaser’s or any of its Affiliates’ or any direct or indirect stockholders (other than the Purchaser), members, managers, directors, officers, employees, agents, representatives or assignees of any of the foregoing
(collectively, the “Purchaser Related Parties”) or (b) the Company’s or any of its Affiliates’ stockholders (other than the Company), members, managers, directors, officers, employees, agents, representatives or
assignees of any of the foregoing (collectively, the “Company Related Parties”), in each case, shall have any liability for any obligations or liabilities of the other parties to this Agreement or for any action (whether in tort,
contract or otherwise) based on, in respect of, or by reason of, the transactions contemplated hereby or in respect of any oral representations made or alleged to be made in connection herewith. Without limiting the rights of the parties hereunder
against the other parties to this Agreement, in no event shall (i) the Company or any of its Affiliates, and the Company agrees not to and to cause its Affiliates not to, seek to enforce this Agreement against, commence any

  
 19 

 
actions for breach of this Agreement against, or seek to recover monetary damages from, any Purchaser Related Party, or (ii) the Purchaser or any of its Affiliates, and the Purchaser agrees
not to and to cause its Affiliates not to, seek to enforce this Agreement against, commence any actions for breach of this Agreement against, or seek to recover monetary damages from, any Company Related Party. 

Section 5.6 Notices. All notices and other communications hereunder shall be in writing and given by certified or registered mail,
return receipt requested, nationally recognized overnight delivery service, such as Federal Express, or electronic mail with confirmation of transmission by the transmitting equipment or personal delivery against receipt to the party to whom it is
given, in each case, at such party’s address or electronic mail address set forth below or such other address or electronic mail address as such party may hereafter specify by notice to the other parties given in accordance herewith. Any such
notice or other communication shall be deemed to have been given as of the date so personally delivered or transmitted by electronic mail, on the next Business Day when sent by overnight delivery services or five days after the date so mailed if by
certified or registered mail. 
  

			
	If to the Company, to:
	
	 Lumos Networks Corp.
 One Lumos
Plaza
 Waynesboro, Virginia 22980
 Attention: Mary
McDermott
 Email: mcdermottm@lumosnet.com

	
	with a copy to:
	
	 Troutman Sanders LLP
 1001 Haxall
Point
 Richmond, VA 23219

	Attention:        	 	 David M. Carter
 R. Mason Bayler,
Jr.

	Email:	 	 david.carter@troutmansanders.com

mason.bayler@troutmansanders.com

	
	If to the Purchaser, to:
	
	 Lumos Investment Holdings, Ltd.
 c/o
Pamplona Capital Management LLC
 375 Park Avenue, 17th Floor

New York, NY 10152

	Attention:	 	 William Pruellage
 Jordan Lee

	E-mail:	 	 wpruellage@pamplonafunds.com

jlee@pamplonafunds.com

  
 20 

			
	
	with a copy to:
	
	 Skadden, Arps, Slate, Meagher & Flom LLP

Four Times Square
 New York, New York 10036

	Attention:	 	Kenneth M. Wolff
		 	Michael J. Schwartz
	E-mail:	 	 kenneth.wolff@skadden.com

michael.schwartz@skadden.com

 Section 5.7 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit
of the parties and their respective successors and permitted assigns, and no other Person shall have any right or obligation hereunder. Neither party hereto may assign its rights or obligations under this Agreement without the prior written consent
of the other party; provided, however, that the rights and obligations hereunder may be assigned by the Purchaser to a controlled Affiliate of the Purchaser; provided, that, in such event, the Purchaser shall remain responsible for all
obligations of the Purchaser under this Agreement following the Closing. Any purported assignment or delegation in violation of this Agreement shall be null and void ab initio. 

Section 5.8 Headings. The Section, Article and other headings contained in this Agreement are inserted for convenience of
reference only and shall not affect the meaning or interpretation of this Agreement. 
 Section 5.9 Amendments and Waivers. This
Agreement may not be modified or amended except by an instrument or instruments in writing signed by each party. Any party may, only by an instrument in writing, waive compliance by any other party or parties with any term or provision hereof on the
part of such other party or parties to be performed or complied with. No failure or delay of any party in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or power, or
any abandonment or discontinuance of steps to enforce such right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The waiver by any party of a breach of any term or provision hereof shall not be
construed as a waiver of any subsequent breach. The rights and remedies of the parties are cumulative and are not exclusive of any rights or remedies that they would otherwise have hereunder. 

Section 5.10 Interpretation; Absence of Presumption. 

(a) For the purposes hereof: (i) words in the singular shall be held to include the plural and vice versa and words of one gender shall
be held to include the other gender as the context requires; (ii) the terms “hereof,” “herein,” and “herewith” and words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as
a whole (including all of the Schedules and Exhibits) and not to any particular provision of this Agreement, and Article, Section, paragraph, Exhibit and Schedule references are to the Articles, Sections, paragraphs, Exhibits, and Schedules to this
Agreement unless otherwise specified; (iii) the word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise
specified; and (iv) the word “or” shall not be exclusive. 

  
 21 

 (b) With regard to each and every term and condition of this Agreement, the Related Agreements
and any agreement or instrument subject to the terms hereof, the parties understand and agree that the same have or has been mutually negotiated, prepared and drafted, and if at any time the parties desire or are required to interpret or construe
any such term or condition or any agreement or instrument subject hereto, no consideration shall be given to the issue of which party actually prepared, drafted or requested any term or condition of this Agreement or any agreement or instrument
subject hereto. 
 (c) The Company agrees that the parties have negotiated in good faith and at arms’ length concerning the
transactions contemplated herein, and that the Purchaser would not have agreed to the terms of this Agreement without each and every of the terms, conditions, protections and remedies provided herein and in the Related Agreements. 

Section 5.11 Severability. Any provision hereof that is held to be invalid, illegal or unenforceable in any respect by a court of
competent jurisdiction, shall be ineffective only to the extent of such invalidity, illegality or unenforceability, without affecting in any way the remaining provisions hereof; provided, however, that the parties shall attempt in good faith
to reform this Agreement in a manner consistent with the intent of any such ineffective provision for the purpose of carrying out such intent. 

Section 5.12 Enforcement. The parties agree that irreparable damage would occur in the event that any of the provisions of this
Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, each of the parties shall be entitled to specific performance of the terms hereof, including an injunction or injunctions to prevent
breaches of this Agreement or the Related Agreements in addition to any other remedy to which each party is entitled at law or in equity. Each of the parties further hereby waives (i) any defense in any action for specific performance that
a remedy at law would be adequate and (ii) any requirement under any law to post security as a prerequisite to obtaining equitable relief. 

Section 5.13 Remedies; Survival of Representations and Warranties. Any and all remedies set forth in this Agreement or the Related
Agreements: (i) shall be in addition to any and all other remedies the Purchaser or the Company may have at law or in equity; (ii) shall be cumulative; and (iii) may be pursued successively or concurrently as the Purchaser and the
Company may elect. The exercise of any remedy by the Purchaser or the Company shall not be deemed an election of remedies or preclude the Purchaser or the Company, respectively, from exercising any other remedy in the future. The representations and
warranties of the parties herein shall terminate as of, and shall not survive, or be of any further force or effect following, the Closing, except that the representations and warranties of the Company set forth in Sections 2.1,
2.2, 2.3, the final two sentences of 2.4, 2.6(b), the first sentence of 2.6(c) and 2.29 shall survive the Closing until the expiration of the statute of limitations therefore, and, with respect to such
representations and warranties that survive the Closing, the Purchaser shall be entitled to any right or remedy available to the Purchaser relating to, or as a result of, any breach of such representations and warranties, provided that the Purchaser
shall not be entitled to damages, in 

  
 22 

 
the aggregate, from the Company that is in excess of the Purchase Price (but damages may be determined on a cumulative basis with the transactions contemplated by any other agreement entered into
on the date hereof by and between the Company and any Affiliate of the Purchaser). Under no circumstance shall either party be entitled to exemplary or punitive damages or lost profits. The covenants set forth in this Agreement shall survive in
accordance with their terms and until fully performed at which time they shall terminate. 
 Section 5.14 Stock Splits, Stock
Dividends, Etc.. Notwithstanding anything herein to the contrary, all measurements and references related to share prices and share numbers herein shall be, in each instance, appropriately adjusted for stock splits, recombinations, stock
dividends and the like. 
 *** 

  
 23 

 The parties have executed this Warrants Purchase Agreement as of the date first written above.

  

			
	LUMOS NETWORKS CORP.
		
	By:	 	 /s/ Timothy G. Biltz

		
	Name:	 	Timothy G. Biltz
	Title:	 	President and Chief Executive Officer
	
	LUMOS INVESTMENT HOLDINGS, LTD.
		
	By:	 	 /s/ William Pruellage

		
	Name:	 	William Pruellage
	Title:	 	Attorney-in-Fact

 [Signature Page to Warrants Purchase Agreement] 

 Exhibit A 

Third Amendment to the Credit Agreement 

 Exhibit B 

Form of Warrant for Common Stock 

 Exhibit C 

Form of Investors Rights Agreement 

 Exhibit D 

Form of Opinion of Counsel to the Company 

 Exhibit E 

Form of Press Release 

 Exhibit F 

Form of 8-KEX-10.3

 Exhibit 10.3 

THE SECURITIES REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THIS NOTE
MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED EXCEPT IN COMPLIANCE THEREWITH. 
  

			
	August 6, 2015	  	$150,000,000
		
	No. 1	  	

 LUMOS NETWORKS CORP. 

8.0% NOTES 
 DUE August 15,
2022 
 THIS NOTE (this “Note”) is a duly authorized issue of notes of Lumos Networks, Corp., a Delaware corporation (the
“Issuer”), designated as its 8.0% Notes due August 15, 2022 (the “Maturity Date”), in an aggregate principal amount of one hundred fifty million dollars ($150,000,000). 

FOR VALUE RECEIVED, the Issuer promises to pay to Lumos Debt Holdings, L.P., a Delaware limited partnership, or a Transferee (together with
its successors and Transferees, the “Holder”), the aggregate principal sum of one hundred fifty million dollars ($150,000,000) on the Maturity Date and to pay interest (each, an “Interest Payment”) on the principal
sum outstanding from time to time under this Note. Interest on this Note will accrue at the rate per annum equal to 8.0% and will be due and payable in cash in immediately available funds in arrears on a quarterly basis on
August 15, November 15, February 15 and May 15 during the term of this Note (each an “Interest Payment Date”), commencing on November 15, 2015; provided that at the election of the Issuer
any interest accrued can be paid (a “PIK Payment”) through the issuance of additional notes or by adding such accrued amounts to the unpaid principal amount of the Note outstanding at such time (“PIK Interest”). Any
failure by the Issuer to pay interest in cash on any Interest Payment Date shall be deemed to be an election to make a PIK Payment of such interest by adding such interest to the unpaid principal amount of the Note outstanding at such time.
Following an increase in the principal amount of any outstanding Note as a result of a PIK Payment, such Note will bear interest on such increased principal amount from and after the date of such PIK Payment. Any additional Note issued will be dated
as of the applicable interest payment date and will bear interest from and after such date. For purposes of this Note, all references to “principal amount” of the Notes shall include any increase in the principal amount of the Notes as a
result of a PIK Payment. 
 Interest will accrue from the most recent date to which interest has been paid or, if no interest has been paid,
from and including the original issue date of this Note. Interest will be computed on the basis of a 360-day year of twelve 30-day months. Interest Payments will be paid to the Person in whose name this Note is registered on the Notes Register on
the Business Day prior to the applicable payment date. The Issuer shall maintain the Notes Register at its principal office in which it shall provide for the registration of Notes and of transfers and exchanges thereof. 

 This Note is subject to the following additional provisions: 

EXCHANGE 
 This Note is
exchangeable for an equal aggregate principal amount of Notes of different denominations (in integral multiples of $1,000 principal amount or $1.00 principal amount to the extent such Notes are PIK Notes), as requested by the Holder surrendering the
same. No service charge will be charged to the Holder for such registration, transfer or exchange. 
 TRANSFERS 

This Note has been issued subject to investment representations of the original purchaser hereof and may be transferred or exchanged in the
United States only in compliance with the Securities Act, applicable state securities laws and the other provisions hereof. Prior to due presentment for transfer of this Note, the Issuer may treat the Person in whose name this Note is duly
registered on the Notes Register as the owner hereof for the purpose of receiving payment as herein provided and all other purposes, whether or not this Note be overdue, and the Issuer shall not be affected by notice to the contrary. 

DEFINITIONS 
 For purposes
of this Note, the following terms shall have the following meanings. 
 “Affiliate” means, when used with reference to a
specified Person, any Person that directly or indirectly controls or is controlled by or is under common control with the specified Person. As used in this definition, “control” (including, with its correlative meanings, “controlled
by” and “under common control with”) shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership
interests, by contract or otherwise). 
 “Bankruptcy Law” means Title 11, United States Code, or any similar Federal or
state law for the relief of debtors. 
 “Board” means the Issuer’s Board of Directors. 

“Business Day” means any day other than a Saturday, Sunday or any other day on which commercial banks in the City of New York
are authorized or required by law to remain closed. 
 “Capitalized 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 such time be required to be capitalized on a balance sheet in accordance with GAAP. 

“Change of Control” means the occurrence of the following: (a) any “person” or “group” (as such
terms are used in Section 13(d) and 14(d) of the Exchange Act) other than the 

  
 2 

 
Permitted Holders, is or becomes the beneficial owner (within the meaning of Rule 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of 35% of the Voting Interests of the Issuer (or
other securities convertible into such Voting Interests), or (b) during any period of up to 24 consecutive months, commencing after the Issuer Date, the majority of the board of directors of the Issuer shall cease to consist of either
Continuing Directors or directors whose nomination for, or assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of
one or more directors by any person or group; or (c) the occurrence of any sale, lease, exchange or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Issuer; or (d) the
occurrence of any consolidation or merger of the Issuer; (e) Issuer shall cease, directly or indirectly, to beneficially own and control 100% on a fully diluted basis of the economic and voting interest in the Equity Interests of Lumos
Operating; or (f) the Issuer adopts a plan of liquidation or dissolution or any such plan is approved by the stockholders of the Issuer; or (g) the occurrence of a “Change of Control” under the Credit Agreement. 

“Credit Agreement” means the Credit Agreement, dated as of April 30, 2013, among Lumos Networks Operating Company (the
“Borrower”), the Subsidiary Guarantors (as defined therein), the Lenders (as defined therein), the Initial Issuing Bank (as defined therein) and CoBank, ACB, as collateral agent and administrative agent (the “Administrative
Agent”), as amended by (i) the First Amendment Agreement, dated as of October 8, 2013, among the Borrower, the Subsidiary Guarantors listed on the signature pages thereto, and the Negative Pledgors (as defined therein), the
Administrative Agent and the Lenders (as defined therein), (ii) the Joinder Agreement and Second Amendment to Credit Agreement dated as of January 2, 2015, among the Borrower, the New Term Lenders (as defined therein), the Subsidiary
Guarantors (as defined therein), the Negative Pledgors (as defined therein), and each of Fifth Third Bank, Royal Bank of Canada and Branch Banking and Trust Company, as documentation agents and the Lenders (as defined therein) and (iii) the
Third Amendment to Credit Agreement dated August 5, 2015, Borrower, the Subsidiary Guarantors (as defined therein), the Negative Pledgors (as defined therein), the Administrative Agent and the Lenders (as defined therein), as amended, restated,
supplemented, modified, replaced or refinanced from time to time. 
 “Code” means the United States Internal Revenue Code
of 1986, as amended. 
 “Contingent Obligation” means, with respect to any Person, any Obligation or arrangement of such
Person to guarantee or intended to guarantee any Indebtedness, leases, dividends or other payment obligations (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether
directly or indirectly, including, without limitation, (a) the direct or indirect guarantee, endorsement (other than for collection or deposit in the ordinary course of business), co-making, discounting with recourse or sale with recourse by
such Person of the Obligation of a primary obligor, (b) the Obligation to make take-or-pay or similar payments, if required, regardless of nonperformance by any other party or parties to an agreement or (c) any Obligation of such Person,
whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds (a) for the purchase or payment of any such primary obligation
or (b) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, assets, securities or services

  
 3 

 
primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or
hold harmless the holder of such primary obligation against loss in respect thereof. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of
which such Contingent Obligation is made (or, if less, the maximum amount of such primary obligation for which such Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or
determinable, the maximum reasonably anticipated liability in respect thereof (assuming such Person is required to perform thereunder), as determined by such Person in good faith. 

“Continuing Directors” means the directors of the Issuer on the Issue Date and each other director if, in each case, such
other director’s nomination for election to the Board is recommended by at least a majority of the then Continuing Directors. 

“Consolidated” refers to the consolidation of accounts in accordance with GAAP. 

“Default” means any event which is, or after notice or passage of time or both would be, an Event of Default. 

“EBITDA” has the meaning given such term in the Credit Agreement as in effect on the Issue Date. 

“Equity Interests” means all shares, options, warrants, general or limited partnership interests, membership interests or
other equivalents (regardless of how designated) of or in a corporation, partnership, limited liability company or equivalent entity whether voting or nonvoting, including common stock, preferred stock or any other “equity security” (as
such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the Securities and Exchange Commission under the Exchange Act). 

“Events of Default” has the meaning set forth in Section 11.01. 

“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

“Fiscal Year” means a fiscal year of the Issuer and its Subsidiaries which shall end on December 31 of any calendar
year. 
 “GAAP” means generally accepted accounting principles in the United States of America, as in effect from time to
time. 
 “Governmental Authority” means any nation or government, any state or other political subdivision thereof, and any
agency, department or other entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

“Hedge Agreements” means (i) any and all rate swap transactions, basis swaps, credit derivative transactions, forward
rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward bond price or forward bond index

  
 4 

 
transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to
any master agreement, and (ii) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement. 

“Holder” has the meaning set forth on the first page of this Note. 

“Indebtedness” means, with respect to any Person, without duplication (a) all Indebtedness for Borrowed Money of such
Person; (b) all Obligations of such Person for the deferred purchase price of property or services (other than trade payable of such Person incurred in the ordinary course of such Person’s business and which are not more than 90 days past
due or that are being contested in good faith); (c) all Obligations of such Person evidenced by notes, bonds, debentures or other similar instruments or drafts accepted representing extensions of credit whether or not representing Indebtedness
for Borrowed Money, (d) all Obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all Capitalized Lease Obligations; (f) the maximum principal amount of all Obligations and Contingent Obligations of such Person
arising under any letters of credit or bankers’ acceptance facilities or similar instrument and, without duplication, all drafts drawn thereunder (to the extent unreimbursed) (g) all Obligations of such Person to purchase, redeem, retire,
defease or otherwise make any payment in respect of any Equity Interests in such Person or any other Person or any warrants, rights or options to acquire such Equity Interests, valued, in the case of Redeemable Preferred Interests, at the greater of
its voluntary or involuntary liquidation preference plus accrued and unpaid dividends (other than Obligations arising under the Pamplona Warrants or the Warrants Purchase Agreement), (h) all Obligations of such Person under take-or-pay or
similar arrangements or under commodities agreements that is properly classified as a liability on a balance sheet in conformity with GAAP; (i) any Outstanding and unpaid net termination obligations of such Person under any Hedge Agreement;
(j) the principal balance outstanding under any synthetic lease, tax retention operating lease, off-balance sheet loan or similar off-balance sheet financing product or arrangement, (k) obligations with respect to principal under
Contingent Obligations for the repayment of Indebtedness of another Person, whether or not then due and payable (calculated as the maximum amount of such principal), and (l) all Indebtedness secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property (including, without limitation, accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the
payment of such indebtedness or such indebtedness is nonrecourse to the credit of such Person, but only to the extent of the fair value of such property. The Indebtedness of any Person shall include the Indebtedness of any other entity (including
any partnership in which such Person is a general partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such
Indebtedness provide that such Person is not liable therefor. 

  
 5 

 “Indebtedness for Borrowed Money” of any Person means, at any date of
determination, (a) all items that, in accordance with GAAP, would be classified as indebtedness on a Consolidated balance sheet of such Person at such date, including, with respect to the Issuer, Indebtedness under the Credit Agreement and this
Agreement and (b) the maximum principal amount of all Obligations and Contingent Obligations of such Person arising under any letters of credit or bankers’ acceptance facilities or similar instrument and, without duplication, all drafts
drawn thereunder (to the extent unreimbursed). 
 “Interest Payment” has the meaning set forth on the first page of this
Note. 
 “Interest Payment Date” has the meaning set forth on the first page of this Note. 

“Issue Date” means August 6, 2015. 

“Issuer” has the meaning set forth on the first page of this Note. 

“Leverage Ratio” means, at any date of determination, the ratio of Consolidated Indebtedness for Borrowed Money of the Issuer
and its Subsidiaries at such date to EBITDA of the Issuer and its Subsidiaries for the most recently completed Measurement Period. 

“Lien” means any lien, mortgage, deed of trust, security interest, pledge, hypothecation, or other charge or encumbrance of
any kind, or any other type of preferential arrangement, including, without limitation, the lien or retained security title of a conditional vendor and any easement, right of way or other encumbrance on title to real property. 

“Lumos Operating” means Lumos Networks Operating Company and its successors. 

“Material Adverse Effect” means a material adverse effect on the business, assets, liabilities (actual or contingent),
operations or financial condition of the Issuer and its Subsidiaries, taken as a whole. 
 “Material Subsidiary” means any
Subsidiary of the Issuer now existing or hereafter acquired or formed and each successor thereto that (i) for the most recent period of four consecutive fiscal quarters of the Issuer accounted (on a consolidated basis with its Restricted
Subsidiaries) for 10% or more of the revenues of the Issuer or (ii) as of the end of such fiscal quarter, was (on a consolidated basis with its Subsidiaries) the owner of 10% or more of the total assets of the Issuer, as shown on the
consolidated financial statements of the Issuer for such fiscal quarter. 
 “Maturity Date” has the meaning set forth on
the first page of this Note. 
 “Maximum Accrual” has the meaning set forth in Section 4.02(b) of this Note. 

“Measurement Period” means, at any date of determination, the most recently completed four consecutive fiscal quarters of the
Issuer ending on or prior to such date. 
 “Note” has the meaning set forth on the first page of this Note. 

  
 6 

 “Noteholders” means the registered holders from time to time of the Notes. 

“Notes Register” means the register maintained by the Issuer, which includes a list of the names and addresses of each
Holder, as well as the Outstanding Principal Amount and interest amount owing to such Holder from time to time. The entries in the Notes Register shall be conclusive, and the Issuer may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Holder hereunder for all purposes of this Note. The Notes Register shall be available for inspection by any Holder, at any reasonable time and from time to time upon reasonable prior notice. 

“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 or stayed. 
 “Officer’s
Certificate” means a certificate signed by a Responsible Officer of the Issuer. 
 “Pamplona” means Pamplona
Capital Management LLC. 
 “Pamplona Investor Rights Agreement” means the Investors Rights Agreement, dated the Issue Date,
between the Issuer and Lumos Investment Holdings, Ltd., as amended, restated, supplemented or modified from time to time 

“Pamplona Warrants” means the Warrant issued on the date hereof pursuant to the Warrant Purchase Agreement and all Warrants
issued upon transfer, division or combination of, or in substitution for, such Warrant. 
 “Payment Amount” has the meaning
set forth on the second page of this Note. 
 “Permitted Holders” means the collective reference to Pamplona and its
Affiliates. 
 “Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated
organization, association, corporation, limited liability company, institution, public benefit corporation, other entity or government (whether federal, state, county, city, municipal, local, foreign, or otherwise, including any instrumentality,
division, agency, body or department thereof). 
 “PIK Interest” has the meaning set forth on the first page of this Note.

 “PIK Payment” has the meaning set forth on the first page of this Note. 

“Preferred Interests” means, with respect to any Person, Equity Interests issued by such Person that are entitled to a
preference or priority over any other Equity Interests issued by such Person upon any distribution of such Person’s property or assets, whether by dividend or upon liquidation. 

  
 7 

 “Redeemable” means, with respect to any Equity Interest, any such Equity
Interest that (a) the issuer has undertaken to redeem at a fixed or determinable date or dates, whether by operation of a sinking fund or otherwise, or upon the occurrence of a condition not solely within the control of the issuer or
(b) is redeemable at the option of the holder. 
 “Responsible Officer” means any Person holding the title of Chief
Executive Officer, President, Chief Operating Officer, Chief Financial Officer, Treasurer, or Vice-President-Finance. 
 “Required
Noteholders” means, as of any date, Noteholders holding at least a majority of the aggregate principal amount of Notes outstanding on such date. 

“RUS Grant and Security Agreement” means the Broadband Initiatives Program Grant and Security Agreement, dated on or about
August 9, 2010, between Lumos Telephone Inc. (formerly known as NTELOS Telephone Inc.) and the United States of America, acting through the Administrator of the Rural Utilities Service. 

“SEC” means the Securities and Exchange Commission. 

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

“Subsidiary” means, with respect to any Person (other than any natural Person), a corporation or other entity (including
partnerships or limited liability companies), the Equity Interests of which having ordinary voting power to elect a majority of the board of directors of such corporation or managers of such other entity are at the time owned, or the management of
which is otherwise controlled, directly or indirectly through one or more intermediaries or both, by such Person. 
 “Threshold
Amount” means $30,000,000. 
 “Transferee” means any Person or Persons who acquires all or a portion of this Note.

 “Warrants Purchase Agreement” means that certain Warrants Purchase Agreement, dated as of August 5, 2015, by and
between the Company and Lumos Investment Holdings, Ltd. 
 PREPAYMENT 

Section 4.01 Optional Prepayments. The Issuer may, at any time and from time to time prepay all or any portion (in the case of
less than 100% of the outstanding amounts of the Notes, in whole number multiples of $100,000 only) of the outstanding principal amount of the Notes at a prepayment price (expressed as a percentage of principal amount of the Note to be prepayed)
equal to 108%. In connection with each prepayment of principal hereunder, the Issuer shall also pay all accrued and unpaid interest on the principal amount of the Note being repaid. For the avoidance of doubt, a prepayment of less than the entire
outstanding principal amount of each of the Notes under this Section 4.01 shall not relieve the Issuer of its other obligations (including under Section 4.02 below). 

  
 8 

 Section 4.02 Mandatory Prepayments; Change of Control. The Issuer shall prepay 108%
of the entire outstanding principal amount of this Note upon the occurrence of a Change of Control. In connection with such mandatory prepayment, the Issuer shall also pay all accrued and unpaid interest on the principal amount of the Note being
repaid. 
 Section 4.03 Reduction in Principal. If the Issuer has elected to exercise its prepayment pursuant to
Section 4.01, the principal sum required to be paid on the Maturity Date shall be reduced by the amount of principal prepaid. 

NO REISSUANCE OF NOTE 
 No
Notes acquired by the Issuer by reason of redemption, purchase, conversion or otherwise shall be reissued, and all such Notes shall be retired. No additional Notes shall be authorized or issued without the consent of the Required Noteholders. 

COVENANTS 

Section 6.01 Financial Statements and Reports. So long as any amount payable under this Note remains unpaid, the Issuer shall
furnish to the Holder the following financial information: 
 (a) Annual Financial Statements. As soon as available and in any event
no later than the earlier of (i) 15 days after the date that the Issuer is or would be required to file the Issuer’s annual report with the SEC as part of the Issuer’s periodic reporting (whether or not the Issuer is subject to such
reporting requirements), and (ii) 105 days after the end of each Fiscal Year of the Issuer, audited statements of income and cash flows of the Issuer and its Subsidiaries for such Fiscal Year, and audited balance sheets of the Issuer and its
Subsidiaries as of the end of such Fiscal Year. Such financial statements shall be prepared, in all material respects, in accordance with GAAP, consistently applied. 

(b) Quarterly Financial Statements. As soon as available and in any event no later than the earlier of (i) 10 days after the date
that the Issuer is or would be required to file the Issuer’s quarterly report with the SEC as part of the Issuer’s periodic reporting (whether or not the Issuer is subject to such reporting requirements) and (ii) 55 days after the end
of the first three Fiscal Quarters of each Fiscal Year of the Issuer, unaudited statements of income and cash flows of the Issuer and its Subsidiaries for such quarterly period (as well as unaudited statements of income of the Issuer and its
Subsidiaries for the period from the beginning of the Fiscal Year to the end of such quarter) and unaudited balance sheets of the Issuer and its Subsidiaries as of the end of such quarterly period. 

(c) No Default. Concurrently with each delivery of financial statements pursuant to clause (a) and (b) of this
Section 6.01, an Officer’s Certificate certifying that no event has occurred and is continuing which constitutes a Default or Event of Default, or describing each such event and the remedial steps being taken by the Issuer and its
Subsidiaries, as applicable. 

  
 9 

 Liens. So long as any amount payable under this Note remains outstanding, the Issuer,
without the prior written consent of the Required Noteholders, will not create, assume or permit to exist any Lien on any of their property or assets, whether now owned or hereafter acquired, except for the following: 

any Liens for current taxes, assessments and other governmental charges not yet due and payable or being contested in good faith by the
Issuer by appropriate proceedings and for which reserves have been established by the Issuer in accordance with GAAP; 
 any
mechanic’s, materialman’s, carrier’s, warehousemen’s, landlord’s or similar Liens for sums not yet due or being contested in good faith by the Issuer by appropriate proceedings and for which reserves have been established by
the Issuer in accordance with GAAP; 
 setoff rights or banker’s liens for account charges and fees against funds on deposit with
banks; 
 (c) Liens securing judgments for the payment of money not constituting a Default under Section 10.01(e) or securing appeal or
other surety bonds related to such judgments and notices of lis pendens and associated rights related to litigation being contested in good faith by appropriate proceedings and for which adequate reserves have been made; 

(d) bankers’ Liens, rights of setoff and other Liens existing with respect to cash, cash equivalents or investment property on deposit in
one or more accounts maintained by the Issuer, in each case granted in the ordinary course of business in favor of the bank or banks with which such accounts are maintained, securing amounts owing to such bank solely with respect to cash management,
operating account arrangements, letters of credit or brokerage or commodities accounts, including those involving pooled accounts and netting arrangements; 

(e) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the
importation of goods; and 
 (f) Liens on money or property constituting proceeds of any Indebtedness incurred to fund any acquisition of
assets or equity interests, to the extent that such proceeds are held in escrow pending the closing of such acquisition, so long as such Indebtedness would be permitted by Section 6.03. 

Indebtedness. So long as any amount payable under this Note remains outstanding, the Issuer will not, and will cause its Subsidiaries
not to, unless approved in writing by the Required Noteholders, create, enter into, or allow to exist any Indebtedness other than: 

(    ) Indebtedness under the Credit Agreement in an aggregate principal amount not to exceed $402,500,000 at any one time
outstanding; 

  
 10 

 (a) (x) Indebtedness or (y) Capitalized Leases in each case incurred by any Subsidiary to
acquire real property, equipment and related assets acquired or held by such Subsidiaries in the ordinary course of business; provided that, the sum of clauses (x) and (y) shall not exceed in the aggregate $10,000,000 at any time
outstanding; 
 (b) Indebtedness incurred to pay premiums for insurance policies maintained by the Issuer or its Subsidiaries in the
ordinary course of business not exceeding the aggregate amount of such unpaid premiums; 
 (c) Contingent Obligations with respect to bonds
issued to support workers’ compensation, unemployment or other insurance or self-insurance obligations, and similar obligations, in each case incurred in the ordinary course of business; 

(d) Indebtedness in the form of any earnout or other similar contingent payment obligation incurred in connection with an acquisition
permitted hereunder; 
 (e) Indebtedness in respect of take-or-pay contracts entered into in the ordinary course of business; 

(f) Indebtedness arising under any Hedge Agreement entered into in the ordinary course of business in order to hedge against risks present in
the business of the Issuer and its Subsidiaries in a manner consistent with prudent business practice; 
 (g) Contingent Obligations
incurred by any Subsidiary in respect of any Indebtedness of any Subsidiary that is permitted under this Agreement; 
 (h) Indebtedness
arising from agreements providing for indemnification, adjustment of purchase price or similar obligations, or guarantees or letters of credit, surety bonds or performance bonds securing any such obligations of the Issuer or any of its Subsidiaries
pursuant to such agreements, in each case incurred in connection with the disposition of any business, assets or Subsidiary (other than guarantees of Indebtedness incurred by any Person acquiring all or any portion of such business, assets or
Subsidiary for the purpose of financing such acquisition), so long as the amount does not exceed the gross proceeds actually received by the Issuer or any Subsidiary thereof in connection with such disposition; 

(i) Indebtedness arising from the honoring by a bank or other financial institution of a check, draft, or similar instrument drawn against
insufficient funds in the ordinary course of business; provided however, that such Indebtedness is extinguished promptly after its incurrence; 

(j) Indebtedness in respect of a letter of credit issued pursuant to any letter of credit facility, including any Indebtedness constituting
reimbursement obligations with respect to trade letters of credit issued in the ordinary course of business, in an amount not to exceed $2,000,000 in the aggregate for all such Indebtedness; provided that, upon the drawing of any such letter
of credit or the incurrence of any such Indebtedness constituting reimbursement obligations, such amount is reimbursed within thirty (30) days following such drawing or incurrence; 

  
 11 

 (k) Indebtedness existing on the Issue Date (other than Indebtedness incurred under clauses
(a) and (m) of this Section 6.03); 
 (l) this Note, including any PIK Payment; 

(m) any other Indebtedness; provided that immediately after giving effect to such Indebtedness and the use of the proceeds thereof, the
pro forma Leverage Ratio at the time of incurrence shall be no greater than 5.75:1.00; and 
 (n) any Indebtedness of the Issuer to any of
its Subsidiaries and any Indebtedness of any Subsidiary of the Issuer owed to the Issuer or any other Subsidiary of the Issuer. 

Payment Restrictions Affecting Subsidiaries. So long as any amount payable under this Note remains outstanding, the Issuer, without the
prior written consent of the Required Noteholders, will not enter into or suffer to exist, or permit any of its Subsidiaries to enter into or suffer to exist, any agreement or binding arrangement limiting the ability of any of its Subsidiaries to
declare or pay dividends or other distributions to the Issuer in respect of any Subsidiary’s Equity Interests or repay or prepay any Indebtedness owed to, make loans or advances to, or otherwise transfer (other than lease) assets to or invest
in, the Issuer or any Subsidiary of the Issuer (whether through a covenant restricting dividends, loans, asset transfers or investments, a financial covenant or otherwise), except: 

(    ) any limitation pursuant to an agreement in effect at or entered into on the Issue Date, including with respect to
the Credit Agreement, in each case, as in effect on the Issue Date; 
 (a) any agreement in effect at the time such Subsidiary becomes a
Subsidiary of the Issuer, so long as such agreement was not entered into in contemplation of such Person becoming a Subsidiary of the Issuer; 

(b) customary limitations on the disposition or distribution of assets or property in joint venture agreements, asset sale agreements,
options, sale-leaseback agreements, stock sale agreements, lease agreements, licenses and other similar agreements, which limitation is applicable only to the assets that are the subject of such agreements; 

(c) customary non-assignment provisions in contracts and licenses entered into in the ordinary course of business; 

(d) restrictions contained in Capitalized Leases or agreements relating to purchase money Debt, which restrictions are applicable only to the
property so purchased or leased; 
 (e) customary restrictions in agreements evidencing Indebtedness permitted under Section 6.03;
provided that such restrictions are not more restrictive than the restrictions set forth in the Credit Agreement in effect on the Issue Date, 

  
 12 

 (f) restrictions imposed by law or by a Governmental Authority having supervisory authority over
any Subsidiary; 
 (g) customary subordination of subrogation, contribution and similar claims contained in guaranties permitted hereunder,

 (h) subordination of intercompany Indebtedness, to the extent required by the Credit Agreement or other Indebtedness permitted by
Section 6.03; 
 (i) restrictions contained in the RUS Grant and Security
Agreement; and 
 (j) any amendment, modification, restatement, renewal, increase,
supplement, refunding, replacement or refinancing of an agreement referred to in clauses (a) through (j) above, provided, however that such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or
refinancing is not more restrictive than those prior to such amendment, modification, restatement, renewal, increase, supplement, refunding, replacement or refinancing. 

WAIVERS OF DEMAND, ETC. 

The Issuer hereby expressly waives (to the extent permitted by applicable law) demand and presentment for payment, notice of nonpayment,
protest, notice of protest, notice of dishonor, notice of acceleration or intent to accelerate, bringing of suit and diligence in taking any action to collect amounts called for hereunder and will be directly and primarily liable for the payment of
all sums owing and to be owing hereon, regardless of and without any notice, diligence, act or omission as or with respect to the collection of any amount called for hereunder. 

REPLACEMENT NOTES 
 In the
event that the Holder notifies the Issuer that this Note has been lost, stolen or destroyed, a replacement Note identical in all respects to the original Note (except for registration number and outstanding principal amount, if different than that
shown on the original Note) shall be issued by the Issuer to the Holder; provided that the Issuer receives an indemnity against any loss incurred by it in connection with such lost, stolen or destroyed Note, such indemnity to be in form and
substance, and from a Person reasonably acceptable to the Issuer. 

  
 13 

 PAYMENT OF EXPENSES 

The Issuer agrees to pay all reasonable expenses, including reasonable attorneys’ fees, which may be incurred by the Holder in connection
with any waiver or consent hereunder, any amendment hereof, any Event of Default hereunder or in successfully enforcing the provisions of this Note and/or successfully collecting any amount due under this Note. 

DEFAULTS AND REMEDIES 

Section 10.01 Events of Default. Each of the following shall constitute an “Event of Default”: 

(a) any default by the Issuer in (i) the payment of any principal on this Note when the same becomes due and payable at the Maturity
Date, upon acceleration or otherwise, and such default continuing for a period of two (2) Business Days or (ii) the making of any payment required to be made under Section 4.02; 

(b) the Issuer fails to comply with Article 6 as and when required and such failure continues for thirty (30) days after the receipt of
notice described below; 
 (c) the Issuer, or any Subsidiary, fails to pay any Indebtedness within any applicable grace period provided in
such Indebtedness after final maturity or the acceleration of any such Indebtedness by the holders thereof because of a default if the total amount of such Indebtedness unpaid or accelerated exceeds the Threshold Amount or its foreign currency
equivalent at the time; 
 (d) the Issuer, or any Material Subsidiary or any group of Subsidiaries of the Issuer that, taken together, would
constitute a Material Subsidiary, makes an assignment for the benefit of creditors generally, files a petition in bankruptcy, is adjudicated insolvent or has entered against it an order for relief under Bankruptcy Laws, petitions or applies to any
tribunal for any receiver or trustee (for itself or its assets in connection with the bankruptcy, insolvency, or in the case of the Issuer only, the liquidation of such Person ), commences any proceeding relating to itself under any bankruptcy,
reorganization, readjustment of debt law or statute of any jurisdiction, has commenced against it involuntarily any such proceeding (provided such involuntary proceeding remains undismissed for the earlier of a period of 60 days or until an order
for relief is entered), or indicates its consent to, approval of or acquiescence in any such proceeding, or any receiver of or trustee for the Issuer or any of its Subsidiaries or any substantial part of their property is appointed; or 

(e) any judgments or orders, either individually or in the aggregate, for the payment of money in excess of the Threshold Amount shall be
rendered against the Issuer or any Material Subsidiary or any group of Subsidiaries of the Issuer that, taken together, would constitute a Material Subsidiary, and there shall be any period of 45 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; provided, however, that any such judgment or order shall not 

  
 14 

 
give rise to an Event of Default under this Section 10.01(e) if and for so long as (i) the amount of such judgment or order is covered by a valid and binding policy of insurance
between the defendant and the insurer, which shall be rated at least “A” by A.M. Best Company, covering full payment thereof and (ii) such insurer has been notified, and has not disputed the claim made for payment of, the amount of
such judgment or order. 
 The Issuer shall deliver to the Holder, within five (5) Business Days after its knowledge of the occurrence
thereof, written notice in the form of an Officer’s Certificate of any Event of Default and any event which with the giving of notice or the lapse of time would become an Event of Default and what action the Issuer is taking or proposes to take
with respect thereto. 
 Section 10.02 Acceleration. If an Event of Default (other than an Event of Default specified in
Section 10.01(d)) occurs and is continuing, the Required Noteholders, by notice to the Issuer, may declare the outstanding principal amount of and accrued but unpaid interest on the Notes to be due and payable. Upon such a declaration,
such outstanding principal amount and interest shall be due and payable immediately. If an Event of Default specified in Section 10.01(d) occurs and is continuing, the outstanding principal amount of, and accrued interest on, all the
Notes shall ipso facto become and be immediately due and payable without any declaration or other act on the part of any Noteholder. 

The Required Noteholders may rescind an acceleration and its consequences if the rescission would not conflict with any judgment or decree and
if all existing Events of Default have been cured or waived except nonpayment of principal or interest that has become due solely because of acceleration. No such rescission shall affect any subsequent Default or impair any right consequent thereto.

 A delay or omission by the Holder or any other Noteholder in exercising any right or remedy accruing upon an Event of Default shall not
impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of any other remedy. All available remedies are, to the extent permitted by law, cumulative. 

Section 10.03 Waiver of Past Defaults. The Required Noteholders may waive any past or existing Default and its consequences except
(i) a Default in the payment of the outstanding principal amount of or interest on the Notes or (ii) a Default in respect of a provision that under Section 10.04 or Article 12 cannot be amended without the consent of each
Noteholder affected. When a Default is waived, it is deemed cured, and any Event of Default arising therefrom shall be deemed to have been cured, but no such waiver shall extend to any subsequent or other Default or impair any consequent right. 

Section 10.04 Rights of Holder to Receive Payment. Notwithstanding any other provision of this Note, the right of the Holder to
receive payment of the outstanding principal amount of and interest on this Note on or after the respective due dates expressed in this Note, or to bring suit for the enforcement of any such payment on or after such respective dates, shall not be
impaired or affected without the consent of the Holder. 
 Section 10.05 Waiver of Stay or Extension Laws. The Issuer (to the
extent it may lawfully do so) shall not at any time insist upon, or plead, or in any manner whatsoever claim or 

  
 15 

 
take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Note, and the Issuer
(to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and shall not hinder, delay or impede the execution of any power herein granted to the Holder, but shall suffer and permit the execution of
every such power as though no such law had been enacted. 
 SAVINGS CLAUSE 

In case any provision of this Note is held by a court of competent jurisdiction to be excessive in scope or otherwise invalid or
unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Note will not in any way be affected
or impaired thereby. 
 ENTIRE AGREEMENT; AMENDMENTS 

This Note constitutes the full and entire understanding and agreement between the Issuer and the Holder with respect to the subject hereof.
Except as otherwise provided in Section 10.03, neither this Note nor any term hereof may be amended, waived, discharged or terminated other than by a written instrument signed by the Issuer and the Required Noteholders; provided
that any amendment (i) of the Maturity Date or (ii) with respect to the reduction of the outstanding principal amount or any interest rate or premium hereunder shall require, in each case, the written consent of each Noteholder affected.

 After an amendment under this Article 12 becomes effective, the Issuer shall mail to the Noteholders a notice briefly describing such
amendment. The failure to give such notice to all Noteholders, or any defect therein, shall not impair or affect the validity of an amendment under this Article 12. 

TRANSFER; ASSIGNMENT, ETC. 

Subject to compliance with applicable federal and state securities laws, this Note and any portion hereof and the rights hereunder may be
transferred by the Holder in its sole discretion at any time and to any Person or Persons, including, without limitation, Affiliates and affiliated groups of such Holder, without the consent of the Issuer. In connection with any transfer, if the
Issuer reasonably requests, the transferor shall deliver a representation in writing that such transfer is pursuant to an effective registration statement under the Securities Act of 1933, as amended, or pursuant to an available exemption from, or
in a transaction not subject to, registration under the Securities Act of 1933, as amended. The Issuer agrees that in connection with any transfer, assignment, pledge or encumbrance permitted pursuant to the terms hereof, the

  
 16 

 
Issuer shall cause such transfer, assignment, pledge or encumbrance to be reflected in the Notes Register, and all principal, interest and other amounts which are then, and thereafter become, due
under this Note shall be paid to such Transferee at the place of payment designated in such notice. The Issuer may not assign this Note or any of its rights or obligations hereunder. This Note shall be binding upon the Issuer and its respective
successors and shall inure to the benefit of the Holder and its successors and permitted assigns. 
 NO WAIVER 

No failure on the part of the Holder to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise by the Holder of any right, remedy or power hereunder preclude any other or future exercise of any other right, remedy or power. Each and every right, remedy or power hereby granted to the Holder or
allowed it by law or other agreement shall be cumulative and not exclusive of any other, and may be exercised by the Holder from time to time. 

NOTICES 
 Unless otherwise
provided herein, any notices, consents, waivers or other communications required or permitted to be given under the terms of this Note must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally,
(ii) upon receipt, when sent by e-mail or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be: 
 If to the Issuer: 

Lumos Networks Corp. 
 One Lumos
Plaza 
 Waynesboro, Virginia 22980 

Attention: Mary McDermott 

Email: mcdermottm@lumosnet.com 

If to the Holder, to its address and facsimile number appearing in the Notes Register, or to such other address and/or facsimile number and/or
to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) Business Days prior to the effectiveness of such change. Written confirmation of receipt (x) given by the
recipient of such notice, consent, waiver or other communication, (y) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such
transmission or (z) provided by a courier or overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery service in accordance with clause (i),
(ii) or (iii) above, respectively. 

  
 17 

 MISCELLANEOUS 

Whenever the sense of this Note requires, words in the singular shall be deemed to include the plural and words in the plural shall be deemed
to include the singular. Paragraph headings are for convenience only and shall not affect the meaning of this document. 
 CHOICE OF LAW
AND VENUE; WAIVER OF JURY TRIAL 
 This Note shall be governed by and construed in accordance with the law of the State of New York. The
Issuer and, by accepting this Note, the Holder hereby irrevocably consents to the exclusive jurisdiction of the United States District Court for the Southern District of New York or any New York State court sitting in New York City (and of the
appropriate appellate courts therefrom) in any suit, action or proceeding seeking to enforce any provision of, or based on any suit, action or proceeding arising out of or in connection with, this Note or the transactions contemplated hereby and
irrevocably waives, to the fullest extent permitted by law, any objection that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is
brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the
foregoing, each party agrees that service of process on such party as provided in this Article 18 shall be deemed effective service of process on such party. EACH OF THE ISSUER AND, BY ACCEPTING THIS NOTE, THE HOLDER HEREBY IRREVOCABLY WAIVES ANY
AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS NOTE. 
 TAX FORMS 

The Holder (and any Transferee) shall provide the Issuer with any tax forms or certificates reasonably requested by the Issuer for the purpose
of establishing any exemption from withholding taxes in respect of all amounts payable to such Holder (or Transferee) hereunder. 

[Remainder of this page intentionally left blank] 

  
 18 

 IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed by its officer
thereunto duly authorized. 
  

					
	LUMOS NETWORKS CORP.
		
	By:	 	 /s/ Timothy G. Biltz

		 	Name:	 	Timothy G. Biltz
		 	Title:	 	President and Chief Executive Officer

  

					
	 ACKNOWLEDGED AND AGREED
 As of the
date first above written:

	
	LUMOS DEBT HOLDINGS, L.P.
	
	By: Lumos Equity Advisors, Ltd., its general partner
		
	By:	 	 /s/ William Pruellage

		 	Name:	 	William Pruellage
		 	Title:	 	Attorney-in-Fact

 Signature Page to Note

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