Document:

<PAGE>   1
                                                                  EXHIBIT 10.5.4

                           STATE COMMUNICATIONS, INC.

                       ----------------------------------

                       PREFERRED STOCK PURCHASE AGREEMENT

                                4,214,703 SHARES

                                       OF

                      SERIES C CONVERTIBLE PREFERRED STOCK

                                    (ROUND 2)

                       ----------------------------------

                              DATED: MARCH 20, 2000

<PAGE>   2
                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                                   PAGE

<S>                                                                                                <C>
ARTICLE I -- SUBSCRIPTION FOR THE PREFERRED SHARES...................................................2
         1.1  Purchase and Sale......................................................................2
         1.2  Closing................................................................................2
         1.3  Separate Agreements....................................................................2
         1.4  Use of Proceeds........................................................................3
ARTICLE II -- REPRESENTATIONS AND WARRANTIES OF THE COMPANY..........................................3
         2.1  Organization and Standing..............................................................3
         2.2  Corporate Power........................................................................3
         2.3  Validity; Binding Obligation...........................................................4
         2.4  Financial Statements...................................................................4
         2.5  Consents...............................................................................4
         2.6  Capitalization.........................................................................5
         2.7  Validity and Rights of Preferred Shares................................................6
         2.8  Registration Rights....................................................................6
         2.9  Securities Laws........................................................................6
         2.10  Absence of Undisclosed Liabilities....................................................6
         2.11  Subsidiaries..........................................................................6
         2.12  Litigation and Claims.................................................................6
         2.13  Title to Properties...................................................................7
         2.14  Intellectual Property Rights..........................................................7
         2.15  Compliance with Other Instruments.....................................................8
         2.16  Compliance with Law...................................................................8
         2.17  Employees.............................................................................8
         2.18  Employee Benefit Plans................................................................8
         2.19  Compliance with Environmental Laws....................................................9
         2.20  Insurance.............................................................................9
         2.21  Material Contracts and Agreements.....................................................9
         2.22  Taxes.................................................................................11
         2.23  Investment Company....................................................................12
         2.24  Labor Relations.......................................................................12
         2.25  No Conflict of Interest...............................................................12
         2.26  Small Business Matters................................................................12
         2.27  Year 2000 Compliance..................................................................13
         2.28  Full Disclosure.......................................................................13
ARTICLE III -- REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS......................................13
         3.1  Organization...........................................................................13
         3.2  Power..................................................................................13
         3.3  Binding Obligation.....................................................................13
         3.4  Consents...............................................................................14
         3.5  Investment Purposes....................................................................14
         3.6  Accredited Investor....................................................................15
         3.7  Legend on Certificates.................................................................15
ARTICLE IV -- CONDITIONS TO THE PURCHASERS' OBLIGATIONS..............................................15
         4.1  Delivery of Certificates...............................................................15
         4.2  Representations and Warranties, Performance of Obligations.............................15
         4.3  No Material Effect.....................................................................15
         4.4  Litigation.............................................................................15
</TABLE>

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<TABLE>
<S>                                                                                                <C>
         4.5  Applicable Law.........................................................................15
         4.6  Articles of Amendment..................................................................15
         4.8  Consents...............................................................................15
         4.9  Certification of Satisfaction of Conditions............................................16
         4.10  Opinion of Counsel....................................................................16
         4.11  Performance of Obligations............................................................16
         4.12  Taxes.................................................................................16
         4.13  Fees and Disbursements of Purchasers' Counsel.........................................16
         4.14  Good Standing Certificates............................................................16
         4.15  No Liens..............................................................................16
         4.16  SBA Documents and Information.........................................................16
ARTICLE V -- CONDITIONS TO THE COMPANY'S OBLIGATION..................................................17
         5.1  Tender by Purchasers...................................................................17
         5.2  Representations and Warranties; Performance of Covenants...............................17
         5.3  Stockholders' Agreement; Registration Rights Agreement.................................17
         5.4  Applicable Law.........................................................................17
         5.5  Consents...............................................................................17
         5.6  Performance of Obligations.............................................................17
ARTICLE VI -- ADDITIONAL COVENANTS OF THE COMPANY....................................................17
         6.1  Securities Law Filings.................................................................17
         6.2  Transactions with Substantial Holders..................................................18
         6.3  Business and Financial Covenants.......................................................18
         6.8  Repurchase of Preferred Shares.........................................................20
         6.4  Corporate Existence, Business, Maintenance, Insurance..................................20
         6.5  Payment of Taxes; ERISA................................................................21
         6.6  Books and Records, Compliance..........................................................21
         6.7  Directors' and Officers' Liability Insurance...........................................21
         6.9  Compensation...........................................................................22
         6.10  Key Person Life Insurance.............................................................22
         6.11  SBA Requirements......................................................................22
ARTICLE VII -- INFORMATION...........................................................................22
         7.1  Audited Annual Financial Statements....................................................22
         7.2  Quarterly Unaudited Financial Statements...............................................22
         7.3  Monthly Unaudited Financial Statements.................................................23
         7.4  Management's Analysis..................................................................23
         7.5  Budgets................................................................................23
         7.6  Inspection.............................................................................23
         7.7  Other Information......................................................................24
ARTICLE VIII -- EXPENSES.............................................................................25
         8.2  Legal Fees and Other Expenses..........................................................25
         8.3  Finder's Fee...........................................................................25
         8.4  Other Expenses.........................................................................25
ARTICLE IX -- MISCELLANEOUS..........................................................................25
         9.1  Survival...............................................................................25
         9.2  Indemnification........................................................................25
         9.3  Transfer and Termination of Rights.....................................................26
         9.4  Binding Effect.........................................................................26
         9.5  Amendment..............................................................................26
         9.6  Governing Law..........................................................................27
         9.7  Notices................................................................................27
         9.8  Headings...............................................................................27
         9.9  Regulatory Requirements................................................................27
         9.10  Counterparts..........................................................................27
</TABLE>

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                         LIST OF EXHIBITS AND SCHEDULES

EXHIBIT A                  Master Amendment Agreement

SCHEDULE  I       List of Purchasers
SCHEDULE  2.1(b)  Jurisdictions Where Company is Qualified
SCHEDULE  2.4(a)  Financial Statements
SCHEDULE  2.4(b)  Changes Since Last Financial Statements
SCHEDULE  2.6(b)  Stock Ledger
SCHEDULE  2.10    Liabilities
SCHEDULE  2.13    Title to Properties
SCHEDULE  2.14    Intellectual Property
SCHEDULE  2.18    Employee Benefit Plans
SCHEDULE  2.20    Insurance
SCHEDULE  2.21    Material Contracts and Agreements
SCHEDULE  2.24    Labor Relations
SCHEDULE  2.25    No Conflict of Interest

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                       PREFERRED STOCK PURCHASE AGREEMENT

                               4,214,703 SHARES OF
                     SERIES C CONVERTIBLE PREFERRED STOCK OF
                           STATE COMMUNICATIONS, INC.

         This PREFERRED STOCK PURCHASE AGREEMENT (the "Agreement") is made and
entered into on this 20th day of March, 2000 by and among STATE COMMUNICATIONS,
INC., a South Carolina corporation (the "Company"), and each of the purchasers
named in Schedule I attached hereto (collectively, the "Purchasers" and each,
individually, a "Purchaser").

                               W I T N E S S E T H:

         WHEREAS, the Purchasers desire to purchase from the Company, and the
Company desires to issue and sell to the Purchasers, 4,214,703 shares of Series
C Convertible Preferred Stock of the Company (the "Preferred Shares") on the
terms and conditions hereinafter set forth for a purchase price of $4.25 per
share, constituting an aggregate purchase price of $17,912,487.75.

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

                                    ARTICLE I
                      SUBSCRIPTION FOR THE PREFERRED SHARES

         1.1 Purchase and Sale. Subject to the terms and conditions set forth
herein, each Purchaser hereby subscribes for and agrees to purchase from the
Company, and the Company hereby agrees to issue and sell to each Purchaser, on
the Closing Date (as hereinafter defined), the number of Preferred Shares set
forth opposite such Purchaser's name in column A of Schedule I, for a purchase
price of $4.25.

         1.2 Closing. The closing of the purchase and sale of the Preferred
Shares (the "Closing") shall be held not later than five business days following
the satisfaction or waiver of the conditions set forth in Articles IV and V or
such other date as the parties shall mutually agree upon (the "Closing Date"),
at the offices of Alston & Bird LLP, 1201 West Peachtree Street, Atlanta,
Georgia, or at such other mutually acceptable place. On the Closing Date, the
Company shall deliver to each Purchaser duly issued stock certificates
representing the number of Preferred Shares to be purchased by such Purchaser.
Each Purchaser shall pay the cash purchase price set forth opposite such
Purchaser's name in Column B of Schedule I for the Preferred Shares by wire
transfer of immediately available funds to an account designated by the Company.

         1.3 Separate Agreements. The purchases by the Purchasers hereunder
shall be separate and several transactions. The obligations of each Purchaser
hereunder shall be several and not joint, and this Agreement shall for all
purposes be construed and deemed to be a separate agreement between the Company
and each Purchaser, acting severally and not jointly, with the same effect as
though a

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separate agreement with each Purchaser to the effect herein provided were hereby
entered into between the Company and each Purchaser.

         1.4 Use of Proceeds. The proceeds of the sale of the Preferred Shares
will be used by the Company for general corporate purposes as determined
appropriate by the Board of Directors of the Company.

                                   ARTICLE II
                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company represents and warrants to each Purchaser as follows:

         2.1  Organization and Standing.

                  (a) Each of the Company and the Subsidiaries (as defined in
Section 2.11) is a corporation duly organized, validly existing and in good
standing under the laws of the State of South Carolina.

                  (b) The Company and the Subsidiaries are currently engaged in
the business of providing local exchange and long distance telecommunication
services to residential customers and the small business market (the
"Business"). Each of the Company and the Subsidiaries is qualified to do
business as a foreign corporation in each jurisdiction in which the failure to
be so qualified would have a material adverse effect on the ability of the
Company or any Subsidiary to conduct the Business or which would impair the
Company's ability to perform its obligations in any material respect under the
Documents, as such term is defined in Section 2.2 hereof (a "Material Adverse
Effect"). Schedule 2.1(b) identifies each jurisdiction in which the Company and
each Subsidiary is currently qualified to do business as a foreign corporation.

                  (c) The Company has delivered to Purchasers' counsel true and
complete copies of the Articles of Incorporation and Bylaws of the Company,
including all amendments thereto, certified by the Secretary as true and in full
force and effect on the Closing Date. The Articles of Incorporation and Bylaws
of the Company will not be amended prior to the Closing Date.

                  (d) The Company and the Subsidiaries have all corporate power
and all governmental licenses, authorizations, consents and approvals required
to carry on the Business as now being conducted and necessary to own, operate
and lease their properties and assets.

         2.2 Corporate Power. The Company has the requisite corporate power to
execute and deliver this Agreement, and the Master Amendment Agreement (relating
to the Registration Rights Agreement, dated February 1, 2000, and the Second
Amended and Restated Stockholders' Agreement, dated February 1, 2000) in
substantially the form attached hereto as Exhibit A (the "Master Amendment
Agreement") (this Agreement and the Master Amendment shall be collectively
referred to herein as the "Documents") and to perform its obligations hereunder
and thereunder.

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         2.3 Validity; Binding Obligation. This Agreement has been duly
authorized, executed and delivered by the Company and constitutes a valid and
binding agreement of the Company, enforceable against it in accordance with its
terms. The other Documents have each been duly authorized by the Company and,
when executed and delivered by the Company and the other parties named therein,
will constitute valid and binding agreements of the Company, enforceable against
the Company in accordance with their respective terms. The issuance, sale and
delivery of the Preferred Shares have been, or prior to the Closing Date will
be, duly authorized by all necessary corporate action by the Company.

         2.4 Financial Statements. (a) Schedule 2.4(a) contains a true and
complete copy of:

                           (i) the audited balance sheet of the Company for the
                  year ended December 31, 1998 and the related audited
                  statements of operations, stockholders' equity and cash flows
                  of the Company for the year ended December 31, 1998; and

                           (ii) the unaudited consolidated balance sheet of the
                  Company for the ten-month period ended October 31, 1999 and
                  the related unaudited consolidated statements of operations,
                  stockholders' equity and cash flows of the Company for such
                  period (the financial statements referred to in clauses (i)
                  and (ii) of this Section 2.4(a) being collectively referred to
                  as the "Financial Statements").

                  (b) The Financial Statements have been prepared in accordance
with generally accepted accounting principles (except that such unaudited
financial statements do not contain all of the required footnotes or normal
recurring year-end adjustments) applied on a consistent basis during the
respective periods covered thereby. The Financial Statements are correct and
complete and present fairly the financial position of the Company at the date of
the balance sheets included therein and the results of operations and cash flows
of the Company for the respective periods covered by the statements of
operations and cash flows included therein. Except as set forth on Schedule 2.4
(b), since the date of the Financial Statements (i) there has been no change in
the assets, liabilities or financial condition of the Company from that
reflected in the Financial Statements, other than changes in the ordinary course
of business which in the aggregate have not been materially adverse, and (ii)
none of the business, prospects, financial condition, operations, property or
affairs of the Company has been materially and adversely affected by any
occurrence or development, individually or in the aggregate, whether or not
covered by insurance.

         2.5 Consents. No consent, approval or authorization of, or
qualification, designation, declaration or filing with, or notice to any
governmental authority on the part of the Company is required in connection with
(i) the valid execution and delivery of the Documents, and (ii) the offer, sale
or issuance of the Preferred Shares (and the Common Stock issuable upon
conversion of the Preferred Shares), except (A) the filing of a Form D with the
Securities and Exchange Commission, (B) the qualification (or taking such action
as may be necessary to secure an exemption from qualification, if available) of
the offer and sale of the Preferred Shares (and the Common Stock issuable upon
conversion of the Preferred Shares) under any applicable state securities laws,
which qualification, if required, will be accomplished in a timely manner prior
to or promptly upon

                                      -3-
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completion of the Closing, as required by such laws and (C) such consents,
approvals and authorizations as have been obtained by the Company prior to
Closing.

         2.6 Capitalization. (a) The authorized capital stock of the Company
consists of 100,000,000 shares of Common Stock, $.001 par value (the "Common
Stock"), and 50,000,000 shares of Preferred Stock, $.0l par value (the
"Preferred Stock"), 4,791,668 of which have been designated as Series A
Convertible Preferred Stock (the "Series A Preferred Stock"), 14,133,329 of
which have been designated as Series B Convertible Preferred Stock (the "Series
B Preferred Stock") and 15,776,471 of which have been designated Series C
Convertible Preferred Stock (the "Series C Preferred Stock"). Immediately after
the Closing, (i) 11,783,782 shares of Common Stock will be issued and
outstanding, (ii) 4,711,672 shares of Series A Preferred Stock will be issued
and outstanding, (iii) 13,866,663 shares of Series B Preferred Stock will be
issued and outstanding, (iv) 15,776,471 shares of Series C Preferred Stock will
be issued and outstanding, (v) 7,864,850 options, warrants or other rights to
purchase or otherwise acquire shares of Common Stock will be outstanding, and
(vi) such number of shares of Common Stock as shall be necessary to effect the
conversion of the Preferred Stock will be reserved for future issuance upon
conversion of Preferred Stock. Immediately after the Closing upon receipt of the
Purchase Price, all such issued and outstanding shares of capital stock of the
Company will be duly authorized and validly issued and outstanding, fully paid
and nonassessable.

                  (b) Schedule 2.6(b) contains a true and correct copy of the
Company's current stock transfer ledger reflecting the record holders of the
Company's equity securities and the number of shares held by each. Each of
Shaler P. Houser and Charles L. Houser (individually, a "Founder" and
collectively, the "Founders") is the lawful owner, of record and beneficially,
of the number of shares of Common Stock set forth opposite the name of each
Founder on Schedule 2.6(b). Each Founder has good and marketable title to, and
all other incidents of record and beneficial ownership of, such shares, free and
clear of any liens, claims and encumbrances, other than the restrictions set
forth in the Stockholders' Agreement or the Liquidation Proceeds Agreements
attached to Schedule 2.6(b) (the "Liquidation Agreements").

                  (c) Except as set forth in paragraph (a) above or as disclosed
on Schedule 2.6(b), immediately after the Closing, there will be no outstanding
(i) securities or securities convertible into or exchangeable for shares of
capital stock of the Company, (ii) options, warrants or other rights to purchase
or otherwise acquire from the Company shares of such capital stock, or
securities convertible into or exchangeable for shares of such capital stock, or
(iii) contracts, agreements or commitments relating to the issuance by the
Company of any shares of such capital stock, any such convertible or
exchangeable securities, or any such options, warrants or other rights. Except
for the Stockholders' Agreement, the Liquidation Agreements or the Investment
Agreement by and among Seruus Telecom Fund, L.P., the Company and certain
individuals named therein, dated February 19, 1998, there are no voting trusts,
voting agreements, proxies or other agreements, instruments or understandings
with respect to the voting of the capital stock of the Company to which the
Company or, to the Company's knowledge, any of its stockholders is a party.

                  (d) The Company has reserved, and at all times from and after
the date hereof will keep reserved, free from preemptive rights, out of its
authorized but unissued shares of Common Stock, solely for the purpose of
effecting the conversion of the Preferred Shares, sufficient shares of Common
Stock to provide for the conversion of all Preferred Shares.

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         2.7 Validity and Rights of Preferred Shares. The Preferred Shares, when
issued to the Purchasers pursuant to this Agreement, will be validly issued,
fully paid and nonassessable, and will have the designations, preferences,
limitations, and relative rights set forth in the Articles of Incorporation. Any
and all shares of Common Stock issued upon conversion of the Preferred Shares
(the "Conversion Shares"), when issued, will be validly issued, fully paid and
nonassessable.

         2.8 Registration Rights. Except for the rights granted under (i) the
Registration Rights Agreement, dated February 1, 2000, between the Company and
certain stockholders (ii) the Registration Rights Agreement dated July 29, 1999
between the Company and certain stockholders, (iii) the Registration Rights
Agreement dated October 28, 1998 between the Company and certain stockholders,
(iv) Amended and Restated Registration Rights Agreement dated February 19, 1998
between the Company and Seruus Telecom Fund, L.P., as amended on February 1,
1999, and (v) the Registration Rights Agreement dated May 27, 1999 between the
Company and Nortel Networks Inc., no person or entity has any right to cause the
Company to effect the registration under the Securities Act of 1933, as amended
(the "Securities Act"), of any shares of its capital stock.

         2.9 Securities Laws. Subject to the accuracy of the representations and
warranties of the Purchasers contained in Article III hereof, the offering, sale
and purchase of the Preferred Shares contemplated hereby are exempt from
registration under the Securities Act. The issuance of all other shares of
capital stock of the Company on or before the date hereof is being or has been
made in compliance with the Securities Act and all applicable state securities
or blue sky laws. All offering documents used and oral disclosure made in
connection with the offer or sale of any of the Company's securities prior to
the date hereof have been correct in all material respects and have not
contained any untrue statements of a material fact or omitted to state a
material fact necessary in order to make the statements contained therein not
misleading.

         2.10 Absence of Undisclosed Liabilities. Except as set forth on
Schedule 2.10, as of the date hereof, neither the Company nor any Subsidiary has
a material liability or obligation of any nature (whether accrued, contingent,
absolute or otherwise) or any material loss contingency (as such term is used in
the Statement of Accounting Standards No. 5 issued by the Financial Accounting
Standards Board in March 1975), which was not adequately disclosed or provided
for in the Financial Statements.

         2.11 Subsidiaries. Except as set forth in Schedule 2.11, the Company
has no Subsidiaries (as hereinafter defined). The Company does not own, or have
the right to acquire, any securities or other equity or ownership interest in
any corporation, partnership, limited liability company, association or other
entity. "Subsidiary" means a corporation, partnership, limited liability company
or any other form of legal entity of which the Company, at the time in respect
of which such term is used, owns directly, or controls with power to vote,
directly or indirectly through one or more Subsidiaries, more than fifty percent
(50%) of the voting securities.

         2.12 Litigation and Claims. Except as set forth in Schedule 2.12, there
are no actions at law, suits in equity or other proceedings or investigations in
any court, tribunal or by or before any other governmental or public authority
or agency or any arbitrator or arbitration panel or any governmental or private
third-party insurance agency, pending or, to the knowledge of the Company,
threatened against or affecting the Company or that would question the validity
or enforceability of this

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Agreement, the Documents, or any of the transactions contemplated hereby and
thereby. The Company is not in default with respect to any order, writ,
injunction, judgment or decree of any court or other governmental or public
authority or agency or arbitrator or arbitration panel.

         2.13 Title to Properties. Each of the Company and the Subsidiaries has
good and marketable title to its properties and assets and has good title to all
its respective leasehold interests, in each case subject to no mortgage, pledge,
lien, encumbrance or charge, other than as set forth on Schedule 2.13 hereto.
Schedule 2.13 accurately lists with respect to the personal property owned (or
purported to be owned) by the Company or the Subsidiaries (i) each financing
statement, deed, agreement or other instrument which has been filed, recorded or
registered pursuant to any United States federal, state or local law or
regulation that names the Company or a Subsidiary as debtor or lessee or as the
grantor or the transferor of the interest created thereby, and (ii) as to each
such financing statement, deed, agreement or other instrument, the names of the
debtor, lessee, grantor or transferor and the secured party, lessor, grantee or
transferee and the name of the jurisdiction in which such financing statement,
deed, agreement or other instrument has been filed, recorded or registered.
Except as set forth on Schedule 2.13, neither the Company nor any Subsidiary has
signed any agreement or instrument authorizing any secured party thereunder to
file any such financing statement, deed, agreement or other instrument.

         2.14 Intellectual Property Rights. Each of the Company and the
Subsidiaries owns or possesses the rights to use, free from any restrictions or
conflicts with the rights of others claiming through the Company or Subsidiary,
all copyrights, trademarks, service marks, trade names, patents and intellectual
property licenses, and all rights with respect to the foregoing, necessary for
the conduct of the Business as now conducted and as proposed to be conducted,
and is in compliance in all material respects with the terms and conditions, if
any, of all such copyrights, trademarks, service marks, trade names, patents and
intellectual property licenses and the terms and conditions of any agreements
relating thereto. Except as set forth on Schedule 2.14, there are no outstanding
options, licenses, or material agreements of any kind relating to the foregoing,
nor is the Company or any Subsidiary bound by or a party to any options,
licenses or agreements of any kind with respect to the patents, trademarks,
service marks, trade names, copyrights, trade secrets, licenses, information,
proprietary rights and processes of any other person or entity. Neither the
Company nor any Subsidiary has received any communications alleging that it has
violated or, by conducting its business as proposed, would violate any of the
patents, trademarks, service marks, trade names, copyrights or trade secrets or
other proprietary rights of any other person or entity. To the Company's
knowledge, none of its 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 their best efforts to promote the interests of
the Company or any Subsidiary or that would conflict with the Company's business
as proposed to be conducted. Neither the execution nor delivery of this
Agreement, nor the carrying on of the Company's or any Subsidiary's business by
the employees of the Company, nor the conduct of the Company's or any
Subsidiary's business as proposed, will conflict with or result in a breach of
the terms, conditions or provisions of, or constitute a default under, any
contract, covenant or instrument under which any of such employees is now
obligated. It is not currently and will not in the future be necessary for the
Company to utilize any inventions of any of its employees (or people it
currently intends to hire) made prior to their employment by the Company.

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         2.15 Compliance with Other Instruments. Neither the Company nor any
Subsidiary is in violation of or in default under any term of its organizational
documents, any term or provision of any mortgage, indenture, contract,
agreement, instrument, judgment or decree, nor is in violation of any applicable
order, statute, rule or regulation except for such violations or defaults as are
not expected to have a Material Adverse Effect, and to the Company's knowledge
there is no state of facts which, with the passage of time or giving of notice
or both, would constitute any such violation or default that would in the
aggregate have a Material Adverse Effect. The execution, delivery and
performance of and compliance with the Documents, the issuance of the Preferred
Shares (and the Conversion Shares) and the consummation of any other transaction
contemplated by the Documents have not resulted and will not result in any such
violation, or be in conflict with, or constitute a default under any of the
foregoing, or result in a violation or breach of any provision of the Company's
Articles of Incorporation or Bylaws, or result in the creation of any mortgage,
pledge, lien, encumbrance or charge upon any of the properties or assets of the
Company or any Subsidiary.

         2.16 Compliance with Law. Each of the Company and the Subsidiaries is
in compliance with all statutes, laws and ordinances and all governmental rules
and regulations to which it is subject, the violation of which, either
individually or in the aggregate, would have a Material Adverse Effect. Neither
the execution, delivery or performance of this Agreement or the other Documents
nor the consummation of the transactions contemplated by the Documents will
cause the Company or any Subsidiary to be in violation of any law or ordinance,
or any order, rule or regulation, of any federal, state, municipal or other
governmental or public authority or agency.

         2.17 Employees. To the knowledge of the Company, (i) no employee of the
Company is in violation of any term of any employment contract, patent
disclosure agreement or any other contract or agreement relating to the
intellectual property of the Company or the relationship of any such employee
with such entity or any other party and (ii) no key employee has or intends to
terminate his or her employment relationship with the Company. The Company
believes that its relationship with its employees is good and the relationship
among its employees is good.

         2.18 Employee Benefit Plans. (a) The Company has not since inception,
nor does it currently sponsor, maintain, contribute to or participate in a
Multiemployer Plan or a "defined benefit plan" within the meaning of Section
3(35) of ERISA covering employees of the Company; (b) except as set forth on
Schedule 2.18, none of the Employee Benefit Plans is an "employee pension
benefit plan", or an "employee welfare benefit plan", within the meaning of
Section 3(3) of ERISA; (c) there are no pending or, to the best of the Company's
knowledge, threatened claims, lawsuits, or arbitrations against any Employee
Benefit Plan or any fiduciary thereof; (d) each Employee Benefit Plan is, and
has been, operated in compliance in all material respects with the applicable
provisions of federal and state law; (e) the Company has, or prior to the
Closing Date will have, paid in full all insurance premiums or otherwise met all
other funding obligations with regard to all Employee Benefit Plans for policy
years or other applicable policy funding periods ending on or before the Closing
Date; and (f) upon termination of employment of any employee, neither the
Company nor any employee will incur any liability for any severance or
termination pay, pension, profit-sharing or other post-retirement benefit,
including but not limited to life, health and welfare benefits, or other similar
payment, except as set forth on Schedule 2.18. For purposes of this
representation, "Employee Benefit Plans" shall mean bonus, pension, benefit,
welfare, profit-sharing, retirement, disability, insurance, incentive, deferred
compensation and other similar fringe or employee benefit plans, funds, programs
or arrangements,

                                      -7-
<PAGE>   12

and any employment contracts or executive compensation agreements, written or
oral, in each of the foregoing cases, which cover or covered, are or were
maintained for the benefit of, or relate or related to, any or all current or
former employees of the Company.

         2.19 Compliance with Environmental Laws. (a) Each of the Company and
the Subsidiaries is, and will continue to be, in compliance with all applicable
federal, state and local environmental laws, regulations and ordinances
governing the Business with respect to all discharges into the ground and
surface water, emissions into the ambient air and generation, accumulation,
storage, treatment, recycling, transportation, labeling or disposal of waste
materials or process by-products except for noncompliance as is not expected to
have a Material Adverse Effect. Neither the Company nor the Subsidiary is liable
for any penalties, fines or forfeitures for failure to comply with any of the
foregoing. All material licenses, permits or registrations required for the
Business as presently conducted and proposed to be conducted, under any federal,
state, or local environmental laws, regulations or ordinances have been or will,
in a timely manner, be obtained or made.

                  (b) No release, emission or discharge into the environment of
hazardous substances, as defined under the Comprehensive Environmental Response,
Compensation, and Liability Act, as amended, or hazardous waste, as defined
under the Resource Conservation and Recovery Act, or air pollutants as defined
under the Clean Air Act, or pollutants, as defined under the Clean Water Act, by
the Company or any Subsidiary has occurred or is presently occurring on or from
any property owned or leased by the Company or any Subsidiary in excess of
federal, state or local permitted releases or reportable quantities, or other
concentrations, standards or limitations under the foregoing laws or any state
or local law governing the protection of health and the environment or under any
other federal, state or local laws or regulations (then or now applicable, as
the case may be).

                  (c) Neither the Company nor the Subsidiary has (1) owned,
operated or, to its knowledge, occupied a site or structure on or in which any
hazardous substance was or is stored, transported or disposed of in violation of
any federal, state or local environmental laws, regulations or ordinances at
such time as such site or structure was owned, occupied or operated by the
Company or any Subsidiary or at any other time, or (2) transported or arranged
for the transportation of any hazardous substance other than in full compliance
with all applicable federal, state and local environmental laws, regulations and
ordinances governing the Business or the storage, transportation or disposal of
hazardous substances. Neither the Company nor any Subsidiary has caused or been
held legally responsible for any release or threatened release of any hazardous
substance, or received notification from any federal, state or other
governmental authority of any such release or threatened release, or that the
Company or any Subsidiary may be required to pay any costs or expenses incurred
or to be incurred in connection with any efforts to mitigate the environmental
impact of any release or threatened release, of any hazardous substance from any
site or structure owned, occupied or operated by the Company or any Subsidiary.

         2.20 Insurance. The Business has fire, casualty, liability, and
business interruption insurance policies with recognized insurers, in such
amounts and with such coverage as set forth on Schedule 2.20.

         2.21 Material Contracts and Agreements. (a) Schedule 2.21 sets forth
all written and oral agreements or understandings of the Company or any
Subsidiary, either existing or pending, which:

                                      -8-
<PAGE>   13

                           (i) provide for the future purchase by the Company or
                  any Subsidiary of products or services in excess of $100,000;

                           (ii) involve the Company or any Subsidiary and any
                  director, officer, or employee of the Company or any
                  Subsidiary;

                           (iii) provide for the borrowing of money or a line of
                  credit by the Company or any Subsidiary or a leasing
                  transaction of a type required to be capitalized by the
                  Company or any Subsidiary in accordance with generally
                  accepted accounting principles;

                           (iv) provide for the sale, assignment, or other
                  disposition of any asset with a value in excess of $100,000 or
                  any material right of the Company or any Subsidiary;

                           (v) provide for the licensing or distribution of the
                  Company's or any Subsidiary's products and services by, or
                  establish an agency relationship with, any other party;

                           (vi) provide for the lease by the Company or any
                  Subsidiary of any real or personal property involving lease
                  payments in excess of $100,000 per year;

                           (vii) restrict the Company or any Subsidiary from
                  engaging in any business activity, restrict either Founder in
                  the performance of his obligations and responsibilities to the
                  Company or any Subsidiary, or create any other obligation or
                  liability of either Founder arising from any prior employment;

                           (viii) to the knowledge of the Company, restrict any
                  other officer or key employee of the Company from engaging in
                  any business activity, restrict any such officer or key
                  employee in the performance of his or her obligations and
                  responsibilities to the Company, or create any other
                  obligation or liability of any such officer or key employee
                  arising from his employment with the Company or any prior
                  employment;

                           (ix) provide for a guaranty, surety, indemnity, or
                  other financial support by the Company or any Subsidiary to
                  any person or entity;

                           (x) grant to any person or entity a right to acquire
                  the assets, business or operations of the Company or any
                  Subsidiary or grant a security interest in or lien on any
                  asset or right of the Company or any Subsidiary; or

                                      -9-
<PAGE>   14

                           (xi) are otherwise material to the Company or any
                  Subsidiary or its business or assets.

                  (b) Each agreement or understanding set forth on Schedule 2.21
is in full force and effect and constitutes a valid and binding obligation of
the Company or Subsidiary (except as enforceability may be affected by
bankruptcy or other similar laws relating to or affecting the rights of
creditors generally) and, to the knowledge of the Company, all other parties
thereto. Each of the Company and, where applicable, each Subsidiary and Founder
has in all respects performed the obligations required to be performed by it or
him and is not in default or alleged to be in default in any material respect
under any such agreement or understanding. There exists no event or condition
which, after notice or lapse of time, or both, would constitute such a default.
To the knowledge of the Company, there are no material defaults by any other
party to any such agreement or understanding. The Company has delivered to the
Purchasers correct and complete copies of all documents set forth on Schedule
2.21.

                  (c) No agreement or understanding to which the Company or
Subsidiary is a party (i) restricts the Company or Subsidiary from engaging in
the Company's business as now being conducted and as proposed to be conducted,
or (ii) grants to any person or entity, other than the Company, any right,
title, or interest in any invention or know-how conceived by the employees of
the Company and related to the business of the Company or any Subsidiary.

         2.22 Taxes. All federal, state and other tax returns of the Company and
each Subsidiary required by law to be filed have been duly filed and all
federal, state and other taxes, assessments, fees and other federal governmental
charges upon the Company, the Subsidiaries or any of their respective
properties, incomes or assets that are due and payable have been paid. No
extensions of the time for the assessment of deficiencies have been granted to
the Company or any Subsidiary in connection with any federal tax, assessment,
fee or other federal governmental charge. There are no liens, claims or
encumbrances on any properties or assets of the Business imposed or arising as a
result of the delinquent payment or the non-payment of any tax, assessment, fee
or other governmental charge. Neither the Company nor any Subsidiary:

                           (i) has assumed and is liable for any federal, state
                  or other income tax liability of any other person, including
                  any predecessor corporation, as a result of any purchase of
                  assets or other business acquisition transaction; and

                           (ii) has indemnified any other person or otherwise
                  agreed to pay on behalf of any other person tax liability
                  growing out of or which may be asserted on the basis of any
                  tax treatment adopted with respect to all or any aspect of
                  such a business acquisition transaction.

The charges, accruals and reserves, if any, on the books of the Company in
respect of federal, state and local corporate franchise and income taxes for all
fiscal periods to date are adequate in accordance with generally accepted
accounting principles, and the Company knows of no additional unpaid assessments
for such periods or other governmental charges payable by the Company in
connection with the execution and delivery of this Agreement, the Documents or
the offer, issuance, sale or delivery of the

                                      -10-
<PAGE>   15

Preferred Shares by the Company, other than stock transfer taxes, recording fees
and filing fees in connection with state securities or "blue sky" filings. The
Company is not a "United States real property holding corporation" within the
meaning of Section 897(c)(2) of the Internal Revenue Code of 1986, as amended.

         2.23 Investment Company. The Company is not an "investment company", or
an "affiliated person" of an "investment company", or a company "controlled" by
an "investment company" as such terms are defined in the Investment Company Act
of 1940, as amended, and the Company is not an "investment adviser" or an
"affiliated person" of an "investment adviser" as such terms are defined in the
Investment Advisers Act of 1940, as amended.

         2.24 Labor Relations. The Company is not engaged in any unfair labor
practices. Except as set forth on Schedule 2.24, there is:

                           (i) no unfair labor practice complaint pending or, to
                  the best of the Company's knowledge, threatened against the
                  Company before the National Labor Relations Board or any court
                  or labor board, and no grievance or arbitration proceedings
                  arising out of or under collective bargaining agreements is so
                  pending or, to the best of the Company's knowledge,
                  threatened,

                           (ii) no strike, lock-out, labor dispute, slowdown or
                  work stoppage pending or, to the best of the Company's
                  knowledge, threatened against the Company, and

                           (iii) no union representation or certification
                  question existing or pending with respect to the employees of
                  the Company, and, to the best knowledge of the Company, no
                  union organization activity taking place.

         2.25 No Conflict of Interest. Except as set forth in Schedule 2.25, the
Company is not indebted, directly or indirectly, to any of its officers or
employees who is the beneficial owner of one percent or more of the outstanding
voting power or the outstanding common equity (on a fully diluted basis) of the
Company (a "Substantial Holder"), or to any affiliate of a Substantial Holder,
in any amount whatsoever. To the best knowledge of the Company, no Substantial
Holders or any of their affiliates are indebted to any firm or corporation with
which the Company is affiliated or with which the Company has a business
relationship, or any firm or corporation which competes with the Company. Except
as contemplated by the Documents, no Substantial Holder, or, to the best of the
Company's knowledge, any affiliate of a Substantial Holder, has a direct or
indirect interest in any contract with the Company or any of the Subsidiaries.

         2.26 Small Business Matters. The Company, together with its
"affiliates" (as that term is defined in Title 13, Code of Federal Regulations,
ss.121.101), is a "small business concern" within the meaning of the Small
Business Investment Act of 1958 and the regulations thereunder, including Title
13, Code of Federal Regulations, ss.121.201. The information regarding the
Company and its affiliates set forth in SBA Form 480, Form 652 and Part A of
Form 1031 delivered at the Closing is accurate and complete. Copies of such
forms shall have been completed and executed by the Company and

                                      -11-
<PAGE>   16

delivered to those Purchasers that so request at the Closing. The Company does
not engage in any activities for which a "small business investment company" is
prohibited from providing funds by the Small Business Investment Act of 1958 and
the regulations thereunder (including Title 13, Code of Federal Regulations,
ss.107.720).

         2.27 Year 2000 Compliance. The Company has (a) initiated a review and
assessment of all areas within its business and operations (including those
affected by suppliers and vendors) that could reasonably be expected to be
relevant to whether it is Year 2000 Complaint, (b) developed a plan and timeline
for ensuring that it is Year 2000 Compliant on a timely basis, and (c) to date,
implemented that plan in accordance with that timetable. Based upon the
foregoing, the Company reasonably believes that it is Year 2000 Compliant as of
the Closing Date.

         2.28 Full Disclosure. This Agreement, the other Documents, and any
report, statement or other writing furnished to the Purchasers by or on behalf
of the Company in connection with the negotiation of this Agreement and the
other Documents and the sale of the Preferred Shares, taken as a whole, do not
contain any untrue statement of a material fact or omit to state a material fact
which is necessary to make the statements contained herein or therein not
misleading.

                                   ARTICLE III
                REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

         Each Purchaser, severally and not jointly, hereby represents and
warrants to the Company, each with respect to itself only, as follows:

         3.1 Organization. Purchaser is duly organized, validly existing and in
good standing under the laws of its jurisdiction of incorporation or
organization. Such Purchaser was not organized for the specific purpose of
acquiring the Preferred Shares.

         3.2 Power. Purchaser has the requisite corporate, partnership or other
power to execute and deliver the Documents and to perform its obligations
thereunder, and the execution and delivery by such Purchaser of the Documents,
the performance by such Purchaser of the transactions contemplated thereby and
the purchase of and payment for the Preferred Shares by such Purchaser, have
been duly authorized by all necessary corporate, partnership or other action on
the part of such Purchaser.

         3.3 Binding Obligation. This Agreement has been duly executed and
delivered by such Purchaser, and constitutes a valid and binding agreement of
such Purchaser, enforceable against such Purchaser in accordance with its terms,
except to the extent that the enforcement thereof may be limited by bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in
effect relating to creditors rights generally and general principles of equity
(regardless of whether enforceability is considered in a proceeding at law or in
equity). The other Documents, when executed and delivered by such Purchaser and
the other parties listed therein, will constitute valid and binding agreements
of such Purchaser enforceable against such Purchaser in accordance with their
terms, except to the extent that the enforcement thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws now or
hereafter in effect relating to creditors rights

                                      -12-
<PAGE>   17

generally and general principles of equity (regardless of whether enforceability
is considered in a proceeding at law or in equity).

         3.4 Consents. No consent, approval or authorization of, or designation,
declaration or filing with, any governmental authority on the part of such
Purchaser is required in connection with the valid execution and delivery of the
Documents or the purchase of and payment for the Preferred Shares, or the
consummation of any other transaction contemplated by the Documents.

         3.5 Investment Purposes. (a) Such Purchaser is acquiring the securities
solely for such Purchaser's account for investment and not with a present view
to, or for resale in connection with, the distribution thereof, except for any
distribution thereof effected in compliance with the Securities Act.

                  (b) Such Purchaser understands that: (i) the purchase of the
Preferred Shares is a speculative investment which involves a high degree of
risk of loss of such holder's investment therein; (ii) there are substantial
restrictions on the transferability of Preferred Shares and the Conversion
Shares under the terms of the Stockholders' Agreement and the applicable
provisions of the Securities Act and the rules and regulations of the Securities
and Exchange Commission (the "SEC") promulgated thereunder and under applicable
state securities or "blue sky" laws; and (iii) at the Closing, and for an
indeterminate period following the Closing, there will be no public market for
the Preferred Shares or the Conversion Shares and, accordingly, that it may not
be possible to readily liquidate an investment in the Company, if at all.

                  (c) Such Purchaser has been advised and understands that: (i)
the offer and sale of the Preferred Shares and the Conversion Shares have not
been registered under the Securities Act; (ii) the Preferred Shares and the
Conversion Shares must be held indefinitely and such Purchaser must continue to
bear the economic risk of the investment in the Preferred Shares and the
Conversion Shares unless the offer or sale of the Preferred Shares or the
Conversion Shares is subsequently registered under the Securities Act or an
exemption from such registration is available; (iii) there is not currently any
public market for the Preferred Shares or the Conversion Shares; (iv) Rule 144
promulgated under the Securities Act is not presently available with respect to
the sale of any securities of the Company, including the Preferred Shares or the
Conversion Shares, and when and if the Preferred Shares or the Conversion Shares
may be disposed of without registration in reliance on Rule 144, such
disposition can be made only in accordance with the terms and conditions of such
Rule; (v) restrictive legends described in Section 3.7 shall be placed on the
certificates representing the Preferred Shares or the Conversion Shares; and
(vi) a notation shall be made in the appropriate records of the Company
indicating that the Preferred Shares or the Conversion Shares are subject to
restrictions on transfer and, if the Company should at some time in the future
engage the services of a securities transfer agent, appropriate stop-transfer
instructions will be issued to such transfer agent with respect to the Preferred
Shares or the Conversion Shares.

                  (d) Such Purchaser is aware that, except as expressly provided
in the Registration Rights Agreement, there exists no right to require
registration of the Preferred Shares or the Conversion Shares and such Purchaser
must bear the economic risk of the investment in the Preferred Shares and the
Conversion Shares.

                                      -13-
<PAGE>   18

         3.6 Accredited Investor. Each Purchaser is an "accredited investor" as
defined in Rule 501(a) of Regulation D promulgated under the Securities Act of
1933, as amended.

         3.7 Legend on Certificates. Each Purchaser has been advised by the
Company that the certificates representing the Preferred Shares (and Conversion
Shares) will bear an appropriate legend to the effect that the shares
represented by such Certificates have not been registered under the Securities
Act, and may not be transferred in the absence of an effective registration
statement under the Securities Act or an exemption from such registration under
said Act, and such additional legends as may be called for by the Stockholders'
Agreement.

                                   ARTICLE IV
                    CONDITIONS TO THE PURCHASERS' OBLIGATIONS

         The obligation of each of the Purchasers to purchase the Preferred
Shares hereunder shall be subject to the satisfaction, prior to or concurrently
with such purchase, of the following conditions:

         4.1 Delivery of Certificates. Such Purchaser shall have received duly
executed stock certificates representing the Preferred Shares being purchased by
such Purchaser.

         4.2 Representations and Warranties; Covenants. The representations and
warranties of the Company contained in this Agreement shall be true and correct
in all material respects on and as of the Closing Date as if made on and as of
such date. The Company shall have performed and complied in all material
respects with all agreements and covenants required by this Agreement to be
performed or complied with by it prior to or on the Closing Date.

         4.3 No Material Adverse Effect. No event or events shall have occurred
and no condition or conditions shall exist, which individually or in the
aggregate would have a Material Adverse Effect, including without limitation,
any such events or conditions which occurred prior to, or existed on the date of
this Agreement, but were not explicitly disclosed herein or in a Schedule
hereto.

         4.4 Litigation. There shall not be any litigation, investigation, claim
or proceeding of or before any court, arbitrator or governmental authority
pending or threatened with respect to any of the Documents or the transactions
contemplated thereby.

         4.5 Applicable Law. Such Purchaser's purchase of and payment for the
Preferred Shares shall not be prohibited by any applicable law, court order or
governmental regulation and shall not subject such Purchaser to any tax,
penalty, liability or other condition under or pursuant to any applicable law,
court order or governmental regulation.

         4.6 Master Amendment Agreement. Prior to or at the Closing, the Master
Amendment Agreement shall have been executed and delivered by each of the
parties thereto.

         4.7 Consents. All governmental authorizations, consents, approvals or
exemptions required to issue the Preferred Shares pursuant to this Agreement
shall have been obtained, and all necessary governmental filings shall have been
made.

                                      -14-
<PAGE>   19

         4.8 Certification of Satisfaction of Conditions. The Company shall have
delivered to the Purchasers a certificate, dated the Closing Date, and signed by
the President of the Company, certifying to the satisfaction of the conditions
set forth in Sections 4.2, 4.3, 4.4, 4.5 and 4.7.

         4.9 Opinion of Counsel. The Purchasers shall have received the opinion
of Wyche, Burgess, Freeman & Parham, P.A., counsel for the Company, dated the
Closing Date, in form and substance satisfactory to the Purchasers and the
Purchasers' counsel covering such matters as the Purchasers and their counsel
may reasonably request.

         4.10 Performance of Obligations. All corporate and other proceedings
taken or to be taken in connection with the transactions contemplated hereby and
all documents incident thereto shall be satisfactory in form and substance to
Purchasers, and the Purchasers or their counsel shall have received all such
counterpart originals or certified or other copies of such documents as it or
they may reasonably request, which shall include, without limitation, a copy of
each of the Documents, duly executed by each party thereto.

         4.11 Taxes. Any taxes, fees and other charges due and payable in
connection with the issuance and sale of the Preferred Shares shall have been
paid in full by the Company.

         4.12 Fees and Disbursements of Purchasers' Counsel. Counsel for each
Purchaser shall have received payment from the Company of its fees and
disbursements in connection with the consummation of the transactions
contemplated herein.

         4.13 Good Standing Certificates. The Company shall deliver a good
standing certificate dated within 10 days of the Closing Date for each
jurisdiction in which they are organized or qualified to do business.

         4.14 No Liens. The Company shall have delivered to Purchasers evidence,
satisfactory to the Purchasers and Purchasers' counsel, that there are no liens,
other than those set forth on Schedule 2.13 hereto, on the assets or properties
of the Company.

         4.15 SBA Documents and Information. The Company shall have executed and
delivered to each Purchaser that so requests forms and information required by
the rules and regulations of the United States Small Business Administration,
including without limitation, a Size Status Declaration on SBA Form 480 and an
Assurance of Compliance on SBA Form 652 and information necessary for the
preparation of a Portfolio Financing Report on SBA Form 1031.

         4.16 Bank Financing. The Company shall have delivered to the Purchasers
a certificate, dated the Closing Date, and signed by the President of the
Company, certifying that (i) the senior credit facility between the Company,
Toronto Dominion (Texas), Inc., Newcourt Commercial Finance Corporation, dated
February 1, 2000 (the "Senior Credit Facility Agreements") remains in full force
and effect and (ii) the Company has satisfied all the conditions precedent to
the initial drawdown.

                                      -15-
<PAGE>   20

                                    ARTICLE V
                     CONDITIONS TO THE COMPANY'S OBLIGATIONS

         The obligation of the Company to issue and sell the Preferred Shares
shall be subject to the satisfaction, prior to or concurrently with such
issuance and sale, of the following conditions:

         5.1 Tender by Purchasers. At the Closing, each of the Purchasers shall
have tendered the cash consideration set forth on Schedule I attached hereto.

         5.2 Representations and Warranties; Performance of Covenants. The
representations and warranties of each Purchaser contained in this Agreement
shall be true and correct in all material respects on and as of the Closing Date
as if made on and as of such date, and each Purchaser shall have performed and
complied in all material respects with all agreements and covenants required by
this Agreement to be performed or complied with by it prior to or on the Closing
Date.

         5.3 Master Amendment Agreement. Prior to or at the Closing, the Master
Amendment Agreement shall have been executed and delivered by each of the
parties thereto.

         5.4 Applicable Law. The Purchasers' purchase of the Preferred Shares
shall not be prohibited by any applicable law, court order or governmental
regulation and there shall not be any litigation, investigation or proceeding of
or before any court, arbitrator or governmental authority pending or threatened
with respect to any of the Documents or the transactions contemplated thereby.

         5.5 Consents. All governmental authorizations, consents, approvals or
exemptions required by the Company to issue and sell the Preferred Shares
pursuant to this Agreement shall have been obtained, and all necessary
governmental filings shall have been made.

         5.6 Performance of Obligations. All proceedings taken or to be taken in
connection with the transactions contemplated hereby and all documents incident
thereto shall be satisfactory in form and substance to the Company and the
Company and its counsel shall have received all such counterpart originals or
certified or other copies of such documents as it may reasonably request, which
shall include, without limitation, a copy of each of the Documents, duly
executed by each party thereto.

                                   ARTICLE VI
                       ADDITIONAL COVENANTS OF THE COMPANY

         The Company covenants and agrees that, except as provided in Section
6.1 below, until such time as the Company has consummated a Public Offering (as
such term is defined in the Stockholders' Agreement):

         6.1 Securities Law Filings. Upon consummation of a Public Offering (as
such term is defined in the Stockholders' Agreement), and for so long as the
Purchasers hold Conversion Shares, the Company will timely file the reports
required to be filed by it under the Securities Act and the Exchange Act and the
rules and regulations adopted by the SEC thereunder, to the extent required from
time to time to enable the Purchasers to sell Conversion Shares without
registration under the

                                      -16-
<PAGE>   21

Securities Act within the limitation of the exemptions provided by (i) Rule 144
under the Securities Act, as such rule may be amended from time to time, or (ii)
any similar rule or regulation hereafter adopted by the SEC. Upon the request of
any Purchaser, the Company will deliver a written statement as to whether it has
complied with such requirements.

         6.2 Transactions with Substantial Holders. The Company shall not,
directly or indirectly, enter into any material transaction or agreement with
any stockholder owning or having a right to acquire 5% or more of the capital
stock of the Company (a "Substantial Holder") or any affiliate, director or
officer of the Company or a Substantial Holder, or a material transaction or
agreement in which a Substantial Holder or affiliate, director or officer of the
Company or a Substantial Holder has a direct or indirect interest, unless such
transaction or agreement is on terms and conditions no less favorable to the
Company or any Subsidiary than could be obtained at the time in an arm's length
transaction with a third person that is not such a Substantial Holder or
affiliate or officer of the Company or a Substantial Holder, and such
transaction or agreement has been reviewed and approved by (i) a majority of
those members of the Company's Board of Directors who have no such interest in
the transaction, and (ii) not less than a majority of the outstanding Preferred
Shares voting separately as a class. Except as provided in Section 9.3, this
Section 6.2 shall not be enforceable against the Company by any person or entity
not a party to this Agreement.

         6.3  Business and Financial Covenants.  The Company covenants that:

                  (a) At any time prior to the Closing or on and after the
Closing without the prior written consent of the holders of not less than a
majority of the outstanding Preferred Shares voting separately as a class:

                           (1) Merger, Consolidation, Acquisitions, Sale of
                  Assets.

                           (i) The Company shall not merge, effect a liquidation
                  or statutory share exchange, consolidate with, or otherwise
                  engage in any transaction or series of related transactions
                  which results in a change of control or permit any Subsidiary
                  to merge, effect a liquidation or statutory share exchange, or
                  consolidate with, any entity or otherwise effect a change of
                  control other than as provided in Section 6.3(b)(1).

                           (ii) The Company shall not sell, assign, lease or
                  otherwise dispose of, or permit any Subsidiary to sell,
                  assign, lease or otherwise dispose of, all or substantially
                  all of its assets (whether now owned or hereafter acquired)
                  other than as provided in Section 6.3(b)(2).

                           (iii) Except for up to 10,000,000 shares of Common
                  Stock of the Company which may be issued upon the exercise of
                  options granted under the Company's Employee Incentive Plan
                  pursuant to option grants having a per share exercise price of
                  not less than fair market value on the date of grant as
                  determined by the Board of Directors, the Company will not,
                  and will not permit any Subsidiary to, hereafter issue or sell
                  any shares of capital stock or any securities convertible
                  into, or any warrants, rights, or

                                      -17-
<PAGE>   22

                  options to purchase shares of, the capital stock of the
                  Company or such Subsidiary to any person or entity other than
                  the Company, and the Company will not pledge any of the
                  capital stock of any Subsidiary to any person or entity.

                           (2) Loans to and Investments in Others. The Company
                  shall not (except for the advancement of money for expenses in
                  the ordinary course of business) make, or permit any
                  Subsidiary to make, any loans or advances to any person or
                  entity or have outstanding any investment in any entity,
                  whether by way of loan or advance to, or by the acquisition of
                  the capital stock, assets or obligations of or any interest
                  in, any person or entity.

                           (3) Articles of Incorporation. The Company shall not
                  amend or repeal its articles of incorporation or bylaws, or
                  violate or breach any of the provisions thereof, provided,
                  however, the prior written consent of the holders of
                  two-thirds (2/3) of the outstanding Preferred Shares voting
                  separately as a class shall be required to amend or repeal the
                  Company's articles of incorporation or bylaws in a manner
                  which would adversely affect in a disparate manner the rights
                  of the holders of the Preferred Shares as compared to the
                  Series A Preferred Stock and Series B Preferred Stock.

                           (4) Debt/Lease Obligations. The Company shall not (i)
                  create, incur or suffer to exist or permit any Subsidiary to
                  create, incur or suffer to exist, any debt or any obligations
                  for the payment of rent for any property real or personal
                  under leases or agreements to lease ("Lease Obligations")
                  other than debt or Lease Obligations which in the aggregate do
                  not exceed $10,000,000 in any one calendar year, and (ii)
                  materially amend, modify, extend or refinance or permit any
                  Subsidiary to materially amend, modify, extend or refinance
                  any existing debt or Lease Obligation.

                           (5) Acquisitions. The Company shall not acquire, or
                  permit any Subsidiary to acquire, directly or indirectly, the
                  assets of or equity interests in any other business or entity,
                  whether by purchase, merger, consolidation or otherwise.

                           (6) Public Offering. The Company shall not effect an
                  initial public offering of any equity securities, other than a
                  public offering in which the Company would receive gross
                  offering proceeds of not less than $35,000,000 and the common
                  equivalent price per share to the public is not less than
                  $9.38, subject to equitable adjustment for any subdivision,
                  stock split, combination or other similar corporate
                  transaction affecting the capital stock of the Company.

                           (7) Other Actions. The Company shall not take any
                  other action that could reasonably be expected to have a
                  Material Adverse Effect on the holders of the Preferred
                  Shares.

                  (b) At any time prior to the Closing or on and after the
Closing without the prior written consent of the holders of two-thirds (2/3) of
the outstanding of the Preferred Shares voting separately as a class:

                                      -18-
<PAGE>   23

                           (1) The Company shall not merge, effect a liquidation
                  or statutory share exchange, consolidate with, or otherwise
                  engage in any transaction or series of related transactions
                  which results in a change of control or permit any Subsidiary
                  to merge, effect a liquidation or statutory share exchange, or
                  consolidate with, any entity or otherwise effect a change of
                  control; if the consideration to be received by the holders of
                  the Preferred Shares is or is valued at less than or equal to
                  $7.00 per share of Preferred Stock.

                           (2) The Company shall not sell, assign, lease or
                  otherwise dispose of, or permit any Subsidiary to sell,
                  assign, lease or otherwise dispose of, all or substantially
                  all of its assets (whether now owned or hereafter acquired) if
                  the consideration to be received by the Corporation, as
                  calculated on a per share basis and after giving affect to all
                  liquidation preferences, would be less than or equal to $7.00
                  per share of Preferred Stock.

                           (3) Restricted Payments; Repurchase of Common Stock.
                  Except as permitted by Section 6.3(b)(2) hereof, neither the
                  Company nor a Subsidiary shall declare or make any Restricted
                  Payment. "Restricted Payment" means (i) any payment or the
                  incurrence of any liability to make any payment in cash,
                  property or other assets as a dividend or other distribution
                  in respect of any shares of capital stock of the Company or
                  any Subsidiary, excluding, however, any dividends payable to
                  the Company by a Subsidiary, and (ii) except as otherwise
                  permitted by the Documents or as required by the Company's
                  Articles of Incorporation, any payment or the incurrence of
                  any liability to make any payment in cash, property or other
                  assets for the purposes of purchasing, retiring or redeeming
                  any shares of any class of capital stock of the Company or any
                  Subsidiary or any warrants, options or other rights to
                  purchase any such shares, other than employee stock
                  repurchases approved by the Board of Directors of the Company
                  upon termination of such employee's employment.

                           (4) Repurchase of Preferred Shares. Except as
                  provided in the Company's Articles of Incorporation, the
                  Company shall not, and shall not permit any Subsidiary or any
                  affiliate of the Company to, directly or indirectly, redeem or
                  repurchase or make any offer to redeem or repurchase any
                  Preferred Shares (or Conversion Shares), unless the Company,
                  such Subsidiary or such affiliate has offered to repurchase
                  Preferred Shares (or Conversion Shares) pro rata, from all
                  holders of outstanding Preferred Shares (or Conversion Shares)
                  upon the same terms.

         6.4  Corporate Existence, Business, Maintenance, Insurance.

                  (a) The Company will at all times preserve and keep in full
force and effect its corporate existence and rights and franchises deemed
material to its business and those of its Subsidiaries, except any Subsidiary of
the Company may be merged into the Company or another Subsidiary.

                                      -19-
<PAGE>   24

                  (b) The Company shall engage solely in the business of
providing local exchange and long distance telecommunication services to
residential customers and small and medium size businesses and such other
related business activities approved by the Board. The Company (and any
Subsidiary) will not purchase or acquire any property other than property useful
in and related to such business.

                  (c) The Company will maintain or cause to be maintained in
good repair, working order and condition all properties used or useful in the
business of the Company and any Subsidiary and from time to time will make or
cause to be made all appropriate repairs, renewals and replacements thereof. The
Company and any Subsidiary will at all times comply in all material respects
with the provisions of all material leases to which it is a party or under which
it occupies property so as to prevent any loss or forfeiture thereof or
thereunder.

                  (d) The Company will maintain or cause to be maintained, with
financially sound and reputable insurers, appropriate insurance with respect to
its properties and business and the properties and business of any Subsidiary
against loss or damage.

         6.5  Payment of Taxes; ERISA.

                  (a) The Company will pay, and will cause any Subsidiary to
pay, all taxes, assessments and other governmental charges imposed upon it or
any of its properties or assets or in respect of any of its franchises,
business, income or profits before any penalty or interest accrues thereon, and
all claims (including, without limitation, claims for labor, services, materials
and supplies) for sums which have become due and payable and which by law have
or might become a lien or charge upon any of its properties or assets, provided
that no such charge or claim need be paid if being diligently contested in good
faith by appropriate proceedings and if such reserve or other appropriate
provisions, if any, as shall be required by generally accepted accounting
principles shall have been made therefor.

                  (b) The Company and any Subsidiary will comply in all material
respects with the Employee Retirement Income Security Act of 1974, as amended
from time to time.

         6.6  Books and Records, Compliance.

                  (a) The Company and any Subsidiary will keep true records and
books of account in which full, true and correct entries will be made of all
dealings or transactions in relation to its business and affairs in accordance
with generally accepted accounting principles applied on a consistent basis.

                  (b) The Company and any Subsidiary shall duly observe and
conform in all material respects to all valid requirements of governmental
authorities relating to the conduct of its business or to its property or
assets.

         6.7 Directors' and Officers' Liability Insurance. The Company shall use
its best efforts to obtain directors' and officers' liability insurance, if such
insurance is available at a cost which the Company's Board of Directors deems to
be reasonably satisfactory.

                                      -20-
<PAGE>   25

         6.8 Compensation. All awards of compensation, including, but not
limited to, salary, bonus and awards of stock options made to executive
officers, key managers and/or directors of the Company shall be determined by
the Company's Board of Directors in accordance with the terms of the
Stockholders' Agreement.

         6.9 Key Person Life Insurance. The Company shall maintain and keep in
full force and effect key person life insurance on the life of Shaler P. Houser
in an aggregate amount of not less than $5,000,000 with the proceeds thereof
payable to the Company.

         6.10 SBA Requirements. The Company will at all times after the Closing
Date comply with the nondiscrimination requirements of 13 C.F.R. Sections 112
and 113.

                                   ARTICLE VII
                                   INFORMATION

         The Company covenants and agrees that it shall deliver the following
information and provide the following rights to each Purchaser (including
permitted transferees in accordance with Section 9.3, except as set forth in
Section 7.7), for so long as such Purchaser together with its affiliates (or
such transferees) shall hold at least 2.5% of the aggregate outstanding
Preferred Shares or Conversion Shares (considered as a single class), or until
such time as the Company shall have consummated a Qualified Public Offering (as
defined in the Articles of Incorporation):

         7.1 Audited Annual Financial Statements. As soon as practicable and, in
any case, within one hundred and twenty (120) days after the end of each fiscal
year, financial statements of the Company, consisting of the balance sheet of
the Company as of the end of such fiscal year and the statements of operations,
statements of shareholders' equity and statements of cash flows of the Company
for such fiscal year, setting forth in each case, in comparative form, the
figures for the preceding fiscal year, all in reasonable detail and fairly
presented in accordance with generally accepted accounting principles applied on
a consistent basis throughout the periods reflected therein, and accompanied by
an opinion thereon of KPMG Peat Marwick LLP, or other independent certified
public accountants selected by the Company of good and recognized national
standing in the United States.

         7.2 Quarterly Unaudited Financial Statements. As soon as practicable
and, in any case, within forty-five (45) days after the end of each of the first
three fiscal quarters in each fiscal year, unaudited financial statements of the
Company setting forth the balance sheet of the Company at the end of each such
fiscal quarter and the statements of operations and statements of cash flows of
the Company for each such fiscal quarter and for the year to date, and setting
forth in comparative form figures as of the corresponding date and for the
corresponding periods of the preceding fiscal year (provided that quarterly
statements of cash flows shall not be required for periods ended prior to the
Closing Date), all in reasonable detail and certified by the chief financial
officer of the Company as complete and correct, as having been prepared in
accordance with generally accepted accounting principles consistently applied
and as presenting fairly, in all material respects, the financial position of
the Company and any Subsidiary and results of operations and cash flows thereof
subject, in each case, to customary exceptions for interim unaudited financial
statements.

                                      -21-
<PAGE>   26

         7.3 Monthly Unaudited Financial Statements. As soon as available, but
in any event within thirty (30) days after the end of each calendar month,
copies of the unaudited balance sheet of the Company as at the end of such
calendar month and the related unaudited statements of operations and cash flows
for such calendar month and the portion of the calendar year through such
calendar year, in each case setting forth in comparative form the figures for
the corresponding periods of (a) the previous calendar year (provided that
monthly financial information shall not be required for periods ended prior to
the Closing Date) and (b) the budget for the current year, prepared in
reasonable detail and in accordance with generally accepted accounting
principles applied consistently throughout the periods reflected therein and
certified by the chief financial officer of the Company as presenting fairly the
financial condition and results of operations of the Company and any Subsidiary
(subject to customary exceptions for interim unaudited financial statements).

         7.4 Management's Analysis. All the financial statements delivered
pursuant to Sections 7.1 and 7.2 shall be accompanied by an informal narrative
description of material business and financial trends and developments and
significant transactions that have occurred in the appropriate period or periods
covered thereby.

         7.5 Budgets. As soon as practicable, but in any event within ninety
(90) days prior to the commencement of a fiscal year, an annual operating budget
for such fiscal year, approved by the Board of Directors, including monthly
income and cash flow projections and projected balance sheets as of the end of
each quarter within such fiscal year.

         7.6 Inspection. (a) The Company shall, and shall cause any Subsidiary
to, permit any such Purchaser, by its representatives, agents or attorneys:

                           (i) to examine all books of account, records, reports
                  and other papers of the Company or such Subsidiary except to
                  the extent that such action would, in the reasonable opinion
                  of counsel, constitute a waiver of the attorney/client
                  privilege;

                           (ii) to make copies and take extracts from any
                  thereof, except for information which is confidential or
                  proprietary;

                           (iii) to discuss the affairs, finances and accounts
                  of the Company or such Subsidiary with the Company's or such
                  Subsidiary's officers and independent certified public
                  accountants (and by this provision the Company hereby
                  authorizes said accountants to discuss with any such Purchaser
                  and its representatives, agents or attorneys the finances and
                  accounts of the Company or such Subsidiary); and

                           (iv) to visit and inspect, at reasonable times and on
                  reasonable notice during normal business hours, the properties
                  of the Company and such Subsidiary.

                                      -22-
<PAGE>   27

                  (b) Notwithstanding any provision herein to the contrary, the
provisions of this Section 7.6 are in addition to any rights of the Purchasers
under the South Carolina Business Corporation Act of 1988, as amended and shall
in no way limit such rights.

                  (c) The expenses of any Purchaser in connection with any such
inspection shall be for the account of such Purchaser. Notwithstanding the
foregoing sentence, it is understood and agreed by the Company that all
reasonable expenses incurred by the Company or such Subsidiary, any officers,
employees or agents thereof or the independent certified public accountants
therefor, shall be expenses payable by the Company and shall not be expenses of
the Purchaser making the inspection.

         7.7 Other Information. The Company shall deliver the following to each
such Purchaser, provided that in the reasonable opinion of counsel to the
Company such disclosure will not constitute a waiver of the attorney/client
privilege:

                           (a) promptly after the submission thereof to the
                  Company, copies of any detailed reports (including the
                  auditors' comment letter to management, if any such letter is
                  prepared) submitted to the Company by its independent auditors
                  in connection with each annual or interim audit of the
                  accounts of the Company made by such accountants;

                           (b) promptly, and in any event within ten (10) days
                  after obtaining knowledge thereof, notice of the institution
                  of any suit, action or proceeding (other than a proceeding of
                  general application which is not directly against the Company
                  or one or more Subsidiary), the happening of any event or, to
                  the best knowledge of the Company, the assertion or threat of
                  any claim against the Company or any Subsidiary;

                           (c) promptly upon, and in any event within thirty
                  (30) days after obtaining knowledge thereof, notice of any
                  breach of, default under or failure to comply with any term
                  under this Agreement or any of the Documents or any material
                  adverse change in the Company's relationship with its major
                  customers, suppliers, employees or other entity with which the
                  Company has a business relationship;

                           (d) with reasonable promptness, a notice of any
                  default by the Company or any Subsidiary under any material
                  agreement to which it is a party;

                           (e) with reasonable promptness, copies of all written
                  materials furnished to directors;

                           (f) promptly (but in any event within ten days) after
                  the filing of any document or material with the SEC, a copy of
                  such document or material;

                           (g) promptly after the record date set by the Board
                  of Directors to determine the stockholders entitled to vote at
                  the Company's annual meeting of stockholders (but in any event
                  ten days prior to such meeting), a list of all stockholders of
                  the Company and their respective holdings; and

                                      -23-
<PAGE>   28

                           (h) promptly upon request therefor, such other data,
                  filings and information as any Purchaser may from time to time
                  reasonably request.

                                  ARTICLE VIII
                                    EXPENSES

         8.1 Legal Fees and Other Expenses. The Company shall pay or reimburse
the Purchasers for all fees and charges incurred by them, including all
reasonable legal, consulting and accounting fees, in connection with the
preparation, execution, and delivery of the Documents and the consummation of
the transactions contemplated thereby whether or not the transactions
contemplated by this Agreement are consummated.

         8.2 Finder's Fee. Each party represents and warrants to each other
party that it has employed no broker or finder.

         8.3 Other Expenses. The Company shall pay, and shall save each
Purchaser harmless against liability for, reasonable costs and expenses relating
to any modification, amendment, alteration or enforcement of this Agreement and
the other Documents (including, without limitation, reasonable legal fees and
disbursements and any applicable taxes thereon). The obligations of the Company
under this Section 8.4 shall survive the termination of this Agreement and the
other Documents.

                                   ARTICLE IX
                                  MISCELLANEOUS

         9.1 Survival. Except for the covenants and agreements contained in
Articles VI, VII, and VIII hereof which shall survive termination of this
Agreement in accordance with their respective terms, all agreements and
covenants made by the Company and the Founders herein or by the Company or
Founders in any certificate or other instrument delivered under or in connection
with this Agreement shall be considered to have been relied upon by the
Purchasers and shall survive the delivery to the Purchasers of the Preferred
Shares regardless of any investigation made by the Purchasers or on their
behalf.

         9.2 Indemnification. (a) Indemnification by the Company. The Company
shall, to the fullest extent permitted by law, indemnify, defend and hold each
Purchaser and its affiliates and their respective directors, officers, employees
and agents harmless from and against any liability, loss or damage, together
with all reasonable costs and expenses related thereto (including reasonable
legal fees and expenses), arising out of or related to the untruth, inaccuracy
or breach of any of the representations, warranties or agreements of the Company
contained in this Agreement or any other document or instrument executed or
entered into by the Company in connection with the consummation of the
transactions contemplated herein.

                  (b) Indemnification by the Purchasers. Each Purchaser shall,
severally and not jointly, to the fullest extent permitted by law, indemnify,
defend and hold the Company harmless

                                      -24-
<PAGE>   29

from and against any liability, loss or damage, together with all reasonable
costs and expenses related thereto (including reasonable legal fees and
expenses), arising out of or related to the untruth, inaccuracy or breach of any
of the representations, warranties or agreements of such Purchaser contained in
this Agreement or any other document or instrument executed or entered into by
such Purchaser in connection with the consummation of the transactions
contemplated herein.

                  (c) Survival of Representations and Warranties; Duration of
Rights of Indemnification. The representations and warranties contained in this
Agreement and the right of each party to be indemnified hereunder shall survive
for a period of two years following the Closing Date; provided, however, the
right of each party to seek indemnification shall continue after such two year
period with respect to:

                           (i) any claim for indemnification properly noticed
                  within such two year period;

                           (ii) any claim for indemnification arising out of or
                  related to a breach of the representations and warranties
                  contained at Sections 2.6, 2.7, 2.8 or 2.22 of this Agreement,
                  which right of indemnification shall extend until the
                  expiration of all applicable statutes of limitation.

         9.3 Transfer and Termination of Rights. No rights under this Agreement
may be transferred, except that:

                           (i) the rights of a Purchaser under this Agreement
                  may be transferred after the Closing in connection with a
                  transfer of Preferred Shares made in accordance with the
                  provisions of the Stockholders' Agreement (other than a
                  transfer pursuant to a registration statement under the
                  Securities Act or a transfer pursuant to Rule 144 thereunder);
                  and

                           (ii) all the rights of a Purchaser may be transferred
                  to an affiliate of such Purchaser;

provided, that any such transferee shall execute and deliver to the Company an
instrument satisfactory to it agreeing to be bound by the provisions hereof and
of the Stockholders' Agreement and the Registration Rights Agreement.

         9.4 Binding Effect. Subject to the limitations on transfer set forth in
Section 9.3, this Agreement and all the provisions hereof shall be binding upon
and shall inure to the benefit of the parties hereto and their respective
successors and assigns.

         9.5 Amendment. This Agreement may be amended or supplemented, and the
observance of any term hereof or thereof may be waived, with the written consent
of the Company and (i) on or prior to the Closing Date, each Purchaser, and (ii)
after the Closing Date, the holders of a two-thirds (2/3) of the Preferred
Shares and any Conversion Shares voting as a single class.

                                      -25-
<PAGE>   30

         9.6 Governing Law. The interpretation, validity and performance of the
terms of this Agreement shall be governed by the laws of the State of South
Carolina, regardless of the law that might be applied under principles of
conflicts of law that require or permit application of the laws of any other
state or jurisdiction.

         9.7 Notices. (a) All communications under this Agreement shall be in
writing and (i) sent by facsimile transmission and by certified or registered
mail, return receipt requested, courier or overnight mail, or (ii) sent by
certified or registered mail, return receipt requested, courier or overnight
mail (A) if to a Purchaser, to such Purchaser's facsimile number and address set
forth in Schedule I, or at such other address as such Purchaser may have
furnished to the Company in writing, (B) if to any transferee of a Purchaser, to
it at its facsimile number and address listed in the stock ledger books of the
Company, or at such other address as such Purchaser or transferee shall have
furnished to the Company in writing, and (C) if to the Company, to 200 North
Main Street, Suite 303, Greenville, South Carolina 29601, Attention: Hamilton E.
Russell III, Esq. or at such other address or facsimile number as it shall have
furnished in writing to all Purchasers.

                  (b) Any written communication so addressed, sent by facsimile
transmission or certified or registered mail, return receipt requested, courier
or overnight mail, shall be deemed to have been given when sent via facsimile or
mailed or deposited with a courier. All other written communications shall be
deemed to have been given upon receipt thereof.

         9.8 Headings. The section and other headings contained in this
Agreement are for reference purposes only and shall not affect the meaning or
interpretation of this Agreement.

         9.9 Regulatory Requirements. In the event of any reasonable
determination by any Purchaser that, by reason of any future federal or state
rule, regulation, guideline, order, request or directive (whether or not having
the force of law and whether or not failure to comply therewith would be
unlawful) (collectively, a "Regulatory Requirement"), it is effectively
restricted or prohibited from holding any of the shares of capital stock of the
Company (including any shares of capital stock or other securities distributable
to such Purchaser in any merger, reorganization, readjustment or other
reclassification of such shares), the Company shall take such action, at the
Company's expense, as may be deemed reasonably necessary by such Purchaser to
permit such Purchaser to comply with such Regulatory Requirement. Such action to
be taken may include, without limitation, the Company's authorization of one or
more new classes of capital stock and the modification of amendment of the
articles of incorporation or any other documents or instruments executed in
connection with the shares held by such Purchaser. Such Purchaser shall give
written notice to the Company of any such determination and the action or
actions necessary to comply with such Regulatory Requirement, and the Company
shall take all steps necessary to comply with such determination as
expeditiously as possible. This Section 9.9 shall not be deemed to limit in any
respect the representations of the Purchasers in Sections 3.2 and 3.4 hereof

         9.10 Counterparts. This Agreement may be executed and delivered in two
or more counterparts, each of which shall be deemed to be an original and all of
which together shall be deemed to be one and the same agreement.

                         [SIGNATURES BEGIN ON NEXT PAGE]

                                      -26-
<PAGE>   31

         IN WITNESS WHEREOF, the parties have executed this Preferred Stock
Purchase Agreement as of the date first above written.

                                    STATE COMMUNICATIONS, INC.

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

                                    MOORE GLOBAL INVESTMENTS, LTD.
                                    By:  Moore Capital Management, Inc.,
                                         Trading Advisor

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

                                    REMINGTON INVESTMENTS STRATEGIES, L.P.
                                    By:  Moore Capital Advisors, L.L.C., General
                                         Partner

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

                                    CIBC WMC INC.

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

                                    NORTEL NETWORKS INC.

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

                                    WACHOVIA CAPITAL INVESTMENTS, INC.

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

                       [SIGNATURES CONTINUED ON NEXT PAGE]

                                      -27-
<PAGE>   32

         IN WITNESS WHEREOF, the parties have executed this Preferred Stock
Purchase Agreement as of the date first above written.

-----------------------------------        -------------------------------------
Portia B. Ortale                           John Ryan Tyrrell

-----------------------------------        -------------------------------------
Patrick S. Hale                            Mark Eric Isaacs

-----------------------------------        -------------------------------------
Linda F. Swafford                          Beverly Ann Schrichte

-----------------------------------        -------------------------------------
Laura Farish Chadwick Management Trust     The Chadwick 1998 Children's Trust

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

                       [SIGNATURES CONTINUED ON NEXT PAGE]

                                      -28-
<PAGE>   33

         IN WITNESS WHEREOF, the parties have executed this Preferred Stock
Purchase Agreement as of the date first above written.

                                     ------------------------------------------
                                     Randy McDougald

                                     ------------------------------------------
                                     Vincent Oddo

                                     ------------------------------------------
                                     William Adams

                                     ------------------------------------------
                                     Ronald Kirby

                                     ------------------------------------------
                                     Hamilton E. Russell, III

                       [SIGNATURES CONTINUED ON NEXT PAGE]

                                      -29-
<PAGE>   34

         IN WITNESS WHEREOF, the parties have executed this Preferred Stock
Purchase Agreement as of the date first above written.

                                    ------------------------------------------
                                    James Dunn

                                    ------------------------------------------
                                    John C. West Trustee for Ernest F. Hollings

                                    ------------------------------------------
                                    Riley Murphy

                                    ------------------------------------------
                                    JoAnn Langston

                                    ------------------------------------------
                                    G. Michael Cassity

                                    CLARK H. MIZELL SSB IRA ROLLOVER

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

                                      -30-
<PAGE>   35

         IN WITNESS WHEREOF, the parties have executed this Preferred Stock
Purchase Agreement as of the date first above written.

                                    MOORE TECHNOLOGY VENTURE FUND II, L.P.
                                    By:
                                        ----------------------------------------

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

                                      -31-
<PAGE>   36

                                   SCHEDULE I

                                   PURCHASERS

<TABLE>
<CAPTION>
                                                                            (B)
                                                     (A)         Total Purchase Price to be
           Purchasers                           No. of Shares          Paid at Closing
           ----------                           -------------          ---------------
<S>                                             <C>               <C>
John Ryan Tyrrell                                   51,765              $   220,001.25

Portia B. Ortale                                    28,236              $   120,003.00

Laura Farish Chadwick Management Trust              11,765              $    50,001.25

The Chadwick 1998 Children's Trust                  11,765              $    50,001.225

Patrick S. Hale                                      5,882              $    24,998.50

Mark Eric Isaacs                                     5,882              $    24,998.50

Linda F. Swafford                                    1,176              $     4,998.00

Beverly Ann Schrichte                                1,176              $     4,998.00

Moore Technology Venture Fund II L.P.              282,352              $ 1,199,996.00
1251 Avenue of the Americas
New York, NY 10020
Attn:  Savvas Savvinidis
(212) 782-7017
Fax:  (212) 382-9813

CIBC WMC Inc.                                    1,764,706              $ 7,500,000.50
c/o CIBC Capital Partners
425 Lexington Avenue
New York, NY  10017
Attn:  Richard White

Nortel Networks Inc.                             1,176,471              $ 5,000,001.75
GMS 991 15 A40
2221 Lakeside Blvd
Richardson, Texas  75082-4399
Attn: Mitchell L. Stone
Director, Customer Finance North America
(972) 684-0395
Fax:  (972) 684-3679

Wachovia Capital Investments, Inc.                 470,588              $ 1,999,999.00
191 Peachtree Street, NE
GA 423, 26th Floor
Atlanta, Georgia 30303
Attention:  Andrew Rose
(404) 332-1176
Fax: (404) 332-1392

Randy McDougald                                     23,529              $    99,998.25
</TABLE>

                                      -1-
<PAGE>   37

                                   SCHEDULE I

                                   PURCHASERS
<TABLE>
<CAPTION>
                                                                            (B)
                                                     (A)         Total Purchase Price to be
              Purchasers                        No. of Shares          Paid at Closing
              ----------                        -------------          ---------------
<S>                                             <C>               <C>
Vincent Oddo                                        10,000              $    42,500.00

William Adams                                       20,000              $    85,000.00

Ronald Kirby                                        52,941              $   224,999.25

Hamilton E. Russell III                              5,000              $    21,250.00

James Dunn                                          23,529              $    99,998.25

John C. West Trustee for Ernest F. Hollings          5,000              $    21,250.00

Riley Murphy                                        35,000              $   148,750.00
9008 Potomac Forest Drive
Great Falls, VA  2206?
Fax:  (703) 757-9476

JoAnn Langston                                       5,000              $    21,250.00

G. Michael Cassity                                 212,940              $   904,995.00

Clark H. Mizell SSB IRA Rollover                    10,000              $    42,500.00

Total                                            4,214,703              $17,912,487.75
</TABLE>

                                      -2-<PAGE>   1
                                                                  EXHIBIT 10.9.1

                          FORM OF EMPLOYMENT AGREEMENT

         Set forth below is the form of employment agreement entered into by and
between TriVergent (f/k/a State Communications, Inc.) and each of Charles S.
Houser, Shaler P. Houser, Russell W. Powell, Clark H. Mizell and Daniel E.H.
Sterling. The terms of employment set forth in the employment agreements have
not changed except that the titles of Shaler P. Houser and Russell W. Powell
have changed as indicated below and salaries have been increased. The table
immediately below sets forth the material provisions of each such person's
employment agreement not contained in the form of employment agreement.

<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
                                                                               STARTING    DATE OF
NAME                   INITIAL POSITION            CURRENT POSITION             SALARY    AGREEMENT
-------------------------------------------------------------------------------------------------------
<S>                    <C>                         <C>                         <C>         <C>
Charles S. Houser      Chief Executive Officer     Chief Executive Officer     $200,000    9/21/99

-------------------------------------------------------------------------------------------------------
Shaler P. Houser       Chief Executive Officer     Senior Vice President of    $150,000    9/20/99
                                                   Corporate Development
-------------------------------------------------------------------------------------------------------
Russell W. Powell      President                   Senior Vice President of    $147,000    9/20/99
                                                   Sales
-------------------------------------------------------------------------------------------------------
Clark H. Mizell        Senior Vice President &     Senior Vice President &     $142,000    9/17/99
                       Chief Financial Officer     Chief Financial Officer
-------------------------------------------------------------------------------------------------------
Daniel E.H. Sterling   Senior Vice President of    Senior Vice President of    $102,000    9/09/99
                       Dealer Sales                Dealer Sales
-------------------------------------------------------------------------------------------------------
</TABLE>

THIS CONTRACT IS SUBJECT TO ARBITRATION PURSUANT TO S.C. CODE SEC. 15-48-10*

STATE OF SOUTH CAROLINA             )
                                    )        EMPLOYMENT AGREEMENT
COUNTY OF GREENVILLE                )

         THIS EMPLOYMENT AGREEMENT ("Agreement") is made and entered into
effective as of the 28th day of October, 1998 (the "Effective Date") by and
between _____________________, an individual (the "Employee"), and State
Communications, Inc., a South Carolina corporation headquartered in Greenville,
South Carolina (the "Company"). As used herein, the term "Company" shall include
the Company and any and all of its subsidiaries where the context so applies.

                               W I T N E S S E T H

         WHEREAS, the Company desires to enter into an employment relationship
with Employee on certain terms and conditions as set forth herein; and

---------------------------
         * UNLESS THE UNITED STATES ARBITRATION ACT APPLIES.

<PAGE>   2

         WHEREAS, Employee has agreed to accept such employment upon the terms
and conditions as set forth herein.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Position. Subject to the terms and conditions of this Agreement, the Company
hereby employs the Employee and Employee hereby accepts such employment as
_______________________ of the Company.

2. Definitions. For purposes of this Agreement, the following terms shall have
the meanings specified below.

         "Change in Control" shall mean:

                  (i) the acquisition, directly or indirectly, by any Person
         (other than (A) any employee plan established by the Company, (B) the
         Company or any of its affiliates (as defined in Rule 12b-2 promulgated
         under the Exchange Act), (C) an underwriter temporarily holding
         securities pursuant to an offering of such securities, or (D) a
         corporation owned, directly or indirectly, by stockholders of the
         Company in substantially the same proportions as their ownership of the
         Company), directly or indirectly, of securities of the Company (not
         including the securities beneficially owned by such Person any
         securities acquired directly from the Company) representing an
         aggregate of 20% or more of the combined voting power of the Company's
         then outstanding voting securities;

                  (ii) during any period of up to two consecutive years
         individuals who, at the beginning of such period, constitute the Board
         cease for any reason to constitute at least a majority thereof,
         provided that any person who becomes a director subsequent to the
         beginning of such period and whose nomination for election is approved
         by at least two-thirds of the directors then still in office who either
         were directors at the beginning of such period or whose election or
         nomination for election was previously so approved (other than a
         director (A) whose initial assumption of office is in connection with
         an actual or threatened election contest relating to the election of
         the directors of the Company, as such terms are used in Rule 14a-11 of
         Regulation 14A under the Exchange Act, or (B) who was designated by a
         Person who has entered into an agreement with the Company to effect a
         transaction described in clause (i), (iii) or (iv) hereof) shall be
         deemed a director as of the beginning of such period;

                  (iii) the stockholders of the Company approve a merger or
         consolidation of the Company with any other corporation other than (A)
         a merger or consolidation that would result in the voting securities of
         the Company outstanding immediately prior thereto continuing to
         represent (either by remaining outstanding or by being converted into
         voting securities of the surviving entity or any parent thereof), in
         combination with the ownership of any trustee or other fiduciary
         holding securities under an employee benefit plan of any Company, at
         least 51% of the combined voting power of the voting securities of the
         Company or such surviving entity or any parent thereof outstanding
         immediately after such merger or consolidation, or (B) a merger or
         consolidation effected to implement a recapitalization of the Company
         (or similar transaction) in which no Person is or becomes the
         beneficial owner (as defined in clause (i) above), directly or
         indirectly, of securities of the Company (not including in the
         securities beneficially owned by such Person any securities acquired
         directly from the Company) representing 25% or more of the combined
         voting power of the Company's then outstanding voting securities; or
         (C) a plan of complete liquidation of the Company; or

                                     Page 2
<PAGE>   3

                  (iv) the occurrence of any other event or circumstance which
         is not covered by (i) through (iii) above which the Board determines
         affects control of the Company and, in order to implement the purposes
         of this Agreement as set forth above, adopts a resolution that such
         event or circumstance constitutes a Change in Control for the purposes
         of this Agreement.

         "Cause" shall mean:

                  (i) in the absence of a Change in Control: (a) fraud; or (b)
         embezzlement; or (c) conviction of the Employee of any felony; or (d) a
         material breach of, or the willful failure or refusal by the Employee
         to perform and discharge the Employee's duties, responsibilities and
         obligations under, this Agreement, as determined by the Board in its
         reasonable judgment, or the repeated failure of the Employee to follow
         reasonable directives and performance standards established by the
         Board; or (e) any act of moral turpitude or willful misconduct by the
         Employee which is intended to result in personal enrichment of the
         Employee at the expense of the Company, or any of its affiliates, or
         which has a material adverse impact on the business or reputation of
         the Company or any of its affiliates (such determination to be made by
         the Board in its reasonable judgment); or (f) intentional material
         damage to the property or business of the Company; or (g) gross
         negligence; or (h) the ineligibility of the Employee to perform his
         duties because of a ruling, directive or other action by any agency of
         the United States or any state of the United States having regulatory
         authority over the Company.

                  (ii) after a Change in Control: (a) the willful and continued
         failure of the Employee substantially to perform his duties with the
         Company (other than any failure due to physical or mental incapacity)
         or (b) willful misconduct materially and demonstrably injurious to the
         Company, in each case, as determined in the reasonable discretion of
         the Board, but only if (1) the Employee has been provided with written
         notice of any assertion that there is a basis for termination for cause
         which notice shall specify in reasonable detail specific facts
         regarding any such assertion, (2) such written notice is provided to
         the Employee a reasonable time before the Board meets to consider any
         possible termination for cause, (3) at or prior to the meeting of the
         Board to consider the matters described in the written notice, an
         opportunity is provided to the Employee and his counsel to be heard
         before the Board with respect to the matters described in the written
         notice, (4) any resolution or other Board action held with respect to
         any deliberation regarding or decision to terminate the Employee for
         cause is duly adopted by a vote of a majority of the entire Board of
         the Company at a meeting of the Board called and held and (5) the
         Employee is promptly provided with a copy of the resolution or other
         corporate action taken with respect to such termination. No act or
         failure to act by the Employee shall be considered willful unless done
         or omitted to be done by him not in good faith and without reasonable
         belief that his action or omission was in the best interests of the
         Company. The unwillingness of the Employee to accept any or all of a
         change in the nature or scope of his position, authorities or duties, a
         reduction in his total compensation or benefits, a relocation that he
         deems unreasonable in light of his personal circumstances, or other
         action by or request of the Company in respect of his position,
         authority, or responsibility that he reasonably deems to be contrary to
         this Agreement, may not be considered by the Board to be a failure to
         perform or misconduct by the Employee.

         "Code" shall mean the Internal Revenue Code of 1986, as amended, or any
         successor statute, rule or regulation of similar effect.

                                     Page 3
<PAGE>   4

         "Disability" or "Disabled" shall mean the Employee's inability as a
         result of physical or mental incapacity to substantially perform his
         duties for the Company on a full-time basis for a period of six (6)
         months.

         "Exchange Act" shall mean the Securities Exchange Act of 1934, as
         amended.

         "Involuntary Termination" shall mean the termination of Employee's
         employment by the Employee following a Change in Control which, in the
         sole judgment of the Employee, is due to (i) a change of the Employee's
         responsibilities, position (including status as Vice President of Sales
         of the Company, its successor or ultimate parent entity, office, title,
         reporting relationships or working conditions) authority or duties
         (including changes resulting from the assignment to the Employee of any
         duties inconsistent with his positions, duties or responsibilities as
         in effect immediately prior to the Change in Control); or (ii) a change
         in the terms or status (including the rolling one year termination
         date) of this Agreement; or (iii) a reduction in the Employee's
         compensation or benefits; or (iv) a forced relocation of the Employee
         outside the Greenville metropolitan area; or (v) a significant increase
         in the Employee's travel requirements.

         "Person" shall mean any individual, corporation, bank, partnership,
         joint venture, association, joint-stock company, trust, unincorporated
         organization or other entity.

3. Duties. During the term hereof, the Employee shall have such duties and
authority as are typical of someone in his position with a company such as the
Company, including, without limitation, those specified in the Company's bylaws
or those reasonably set forth by the Board. Employee agrees that during the Term
hereof, he will devote his full time, attention and energies to the diligent
performance of his duties. Employee shall not, without the prior written consent
of the Company, at any time during the Term hereof (i) accept employment with,
or render services of a business, professional or commercial nature to, any
Person other than the Company, (ii) engage in any venture or activity which the
Company may in good faith consider to be competitive with or adverse to the
business of the Company or of any affiliate of the Company, whether alone, as a
partner, or as an officer, director, employee or shareholder or otherwise,
except that the ownership of not more than 5% of the stock or other equity
interest of any publicly traded corporation or other entity shall not be deemed
a violation of this Section, or (iii) engage in any venture or activity which
the Board may in good faith consider to interfere with Employee's performance of
his duties hereunder.

4. Term. Unless earlier terminated as provided herein, the Employee's employment
hereunder shall be for a rolling term of two years (the "Term") commencing on
the Effective Date hereof. This Agreement shall be deemed to extend each day for
an additional day automatically and without any action on behalf of either party
hereto.

         4.1 Upon Employee's death or Disability, the Company shall have the
right to terminate this Agreement immediately. Upon such termination, the
Employee (or his estate) shall be entitled to receive from the Company as
severance upon such termination, the compensation and benefits, as provided in
Section 5, remaining in the Term.

         4.2 At any time, the Company shall have the right to terminate
Employee's employment immediately for Cause, after which the Company's
obligation hereunder shall cease as of the date of the termination.

                                     Page 4
<PAGE>   5

         4.3 At any time, for any or no reason, the Company, by written notice
to Employee, may cause this Agreement to cease to extend automatically and, upon
such notice, the Term of this Agreement shall be the one year following the date
of such notice, and this Agreement shall terminate automatically upon the
expiration of such Term, after which the Company's obligation hereunder shall
cease.

                  4.3.1 If the Company terminates the Agreement prior to a
Change in Control for any reason other than for Cause after it fixes the Term
pursuant to this section 4.3, the Employee shall be entitled to receive as
severance upon such termination, the compensation and benefits, as provided in
Section 5, remaining in the Term.

                  4.3.2 If the Company fixes the Term pursuant to this section
4.3 after a Change in Control, such action shall constitute an Involuntary
Termination, and the Employee shall be entitled to receive as severance upon
such termination, twenty-four (24) months of his annual compensation and
benefits being paid at the time of termination, as provided in Section 5.

         4.4 Employee shall have the right to terminate his employment hereunder
if (i) the Company materially breaches this Agreement and such breach is not
cured within 30 days after written notice of such breach is given by Employee to
the Company; (ii) or there is an Involuntary Termination.

                  4.4.1 If Employee terminates his employment other than
pursuant to clauses (i) or (ii) of this Section 4.4, the Company's obligations
under this Agreement shall cease as of the date of such termination.

                  4.4.2 If Employee terminates his employment hereunder pursuant
to either clause (i) or clause (ii) of this Section 4.4, Employee shall be
entitled to receive twelve (12) months of his annual compensation and benefits
being paid at the time of termination, as provided in Section 5.

         4.5 In the event of termination pursuant to Sections 4.3.1 or 4.3.2 or
Section 4.4.2:

                  4.5.1 all rights of Employee pursuant to awards of share
grants or options granted by the Company shall be deemed to have vested and
shall be released from all conditions, except for restrictions on transfer
pursuant to the Securities Act of 1933, as amended and such options may be
exercised for up to a maximum of ten years from the date of grant. To the extent
that any term or terms of any option or share grant and this Agreement differ,
the terms of this Agreement govern unless the grant (whether now existing or
entered into after the effective date hereof) expressly states that the
Agreement does not supersede the terms of the grant.

                  4.5.2 the Employee shall be deemed to be credited with service
with the Company for such remaining Term for the purposes of the Company's
benefit plans; and

                  4.5.3 the Employee shall be deemed to have retired from the
Company and shall be entitled as of the termination date, or at such later time
as he may elect to commence receiving the total combined qualified and
non-qualified retirement benefit to which he is entitled hereunder, or his total
non-qualified retirement benefit hereunder if under the terms of the Company's
qualified retirement plan for salaried employees, he is not entitled to a
qualified benefit.

         If any provision of this Section 4.5 cannot, in whole or in part, be
implemented and carried out under the terms of the applicable compensation,
benefit, or other plan or arrangement of the Company because the Employee has
ceased to be an actual employee of the Company, because the Employee has
insufficient or reduced credited service based upon his actual employment by the
Company, because the plan or arrangement has been terminated or amended after
the effective date of this Agreement, or because of any other reason, the
Company itself shall pay or otherwise provide the equivalent of such rights,
benefits and credits for such benefits to Employee, his dependents,
beneficiaries and estate.

                                     Page 5
<PAGE>   6

         4.6 Following a Change in Control, in addition to any other termination
payment contained in this Section 4 (the "Termination Payments"), the Employee
shall also be entitled to receive an additional payment in an amount equal to
all taxes (including any interest or penalties imposed with respect to such
taxes) owed by the Employee on these payments, including, without limitation,
any income taxes or excise taxes (including, without limitation, any tax imposed
by Section 4999 of the Code) and any interest and penalties imposed with respect
thereto.

         4.7 At the sole discretion of the Company, any Termination Payment may
be made immediately in a lump sum payment or through the regular payroll
schedule during the time in which Employee is to receive Termination Payments
("Termination Payment Period"). The Company's obligation to make Termination
Payments shall be offset by the amount of compensation that Employee receives
from any employment, consulting agreement, independent contractor or other
arrangement pursuant to which he is to receive remuneration ("Other Employment")
during the Termination Payment Period. Employee agrees to promptly notify
Company of his acceptance of any such Other Employment during the Termination
Payment Period and to promptly return to Employer any Termination Payment
attributable to any time period after Employee accepted such Other Employment.

5. Compensation And Benefits. In consideration of Employee's services and
covenants hereunder, Company shall pay to Employee the compensation and benefits
described below (which compensation shall be paid in accordance with the normal
compensation practices of the Company and shall be subject to such deductions
and withholdings as are required by law or policies of the Company in effect
from time to time):

         5.1 Annual Salary. During the Term hereof, the Company shall pay to
Employee an initial base salary of $____________. Employee's salary will be
reviewed by the Board at the beginning of each of its fiscal years and, in the
sole discretion of the Board, may be increased for such year.

         5.2 Bonus. In addition to the above salary, the Company may pay to
Employee a bonus in an amount and at times to be determined in the sole
discretion of the Board.

         5.3 Benefits. Employee shall be entitled to share in any employee
benefits generally provided by the Company to its most highly ranking Employees
and officers for so long as the Company provides such benefits and to any other
benefits given to Employee in the sole discretion of the Board.

6. Gross-Up of Payments. It is the intention of the parties that:

          (i) the net amount of all Termination Payments retained by the
Employee after deduction for and payment of all applicable federal, state and
local taxes (the "Withholding Taxes") payable by or on behalf of the Employee
shall be equal to the gross amount of the Termination Payments without regard to
any such deductions or payments (the "Net Termination Payments") and

         (ii) the net amount of all other payments or benefits received or to be
received by the Employee from the Company or one of its benefit plans as a
direct or indirect result of or in connection with a Change in Control or in
connection with Termination within one year of a Change in Control, from
whatever source other than a Termination Payment (the "Other Payments"), that
are or become subject to the tax (the "Excise Tax") imposed by Section 4999 of
the Code, shall be equal to the gross amount of the Other Payments without
regard to deduction or payment or any such Excise Tax.

         Accordingly, the Termination Payments otherwise payable hereunder shall
be increased by an amount of cash (the "Withholding Gross-Up Payment") equal to
all Withholding Taxes payable by or on behalf of the Employee in respect of the
Termination Payments, including any Withholding Taxes as may be due in respect
of such additional amounts to be paid pursuant to this sentence as will result
in the

                                     Page 6
<PAGE>   7

Employee actually retaining an amount equal to the Net Termination Payments. In
addition, if the sum of the Termination Payments, the Withholding Gross-Up
Payment and the Other Payments (the "Total Payments") are or become subject to
the Excise Tax, the Company shall pay the Employee within 30 days of the
termination date an additional cash amount (the "Excise Gross-Up Payment") such
that the net amount actually retained by the Employee, after deduction for or
payment of any Excise Tax on the Total Payments and the sum of any Withholding
Taxes upon the payment provided by this sentence shall be equal to the Total
Payments (the "Net Total Payments"). For the purposes of determining whether any
of the Total Payments will be subject to the Excise Tax and the amount of such
Excise Tax, the following shall apply:

         6.1 all excess parachute payments within the meaning of Section
280G(b)(1) of the Code shall be treated as subject to the Excise Tax, unless, in
the opinion of tax counsel selected by the Company's independent auditors and
acceptable to the Employee, such other payments or benefits (in whole or in
part) described in clause (a) above do not constitute parachute payments or such
excess parachute payments (in whole or in part) represent reasonable
compensation for services actually rendered within the meaning of Section
280(G)(b)(4) of the Code;

         6.2 the amount of the Termination Payments which shall be treated as
subject to the Excise Tax shall be equal to the lesser of:

                  (i) the total amount of the Termination Payments; and

                  (ii) the amount of excess parachute payments within the
         meaning of Sections 280G(b)(1) and (4) (after applying Sections 6.1 and
         6.2 above).

         6.3 the value of any non-cash benefits or any deferred payment or
benefit shall be determined by the Company's independent auditors in accordance
with the principles of Sections 280G(d)(3) and (4) of the Code; and

         6.4 the Employee shall be deemed to pay federal income taxes, and state
and local income taxes in the state and locality of the Employee's residence on
the date of Termination, at the highest marginal rate of income taxation in
effect in the calendar year in which the Gross-Up Payment is to be made, net of
the maximum reduction in federal income taxes which could be obtained from
deduction of such state and local income taxes.

         Provided, that in the event the Excise Tax or Withholding Taxes are
subsequently determined to be less than the amounts taken into account hereunder
at the time of the payment of the Withholding Gross-Up Payments or the Excise
Tax Gross-Up Payment, the Employee shall repay the Company the portion of such
payments attributable to such reduction, or in the event that the Excise Tax or
the Withholding Taxes are subsequently determined to exceed the amount taken
into account hereunder at the time of the payment of the Withholding Gross-Up
Payment or the Excise Tax Gross-Up Payment (including by reason of any payment
the existence or amount of which cannot be determined at the time of such
payments), the Company shall make an additional gross-up payment in respect of
such excess, in each case, payment to be made within 30 days after the final
determination of the amount of the reduction or excess, as the case may be,
together with interest thereon at the rate provided in Section 1274(b)(2)(B) of
the Code.

7. Confidentiality. Employee shall hold in a fiduciary capacity for the benefit
of the Company all confidential information and trade secrets (as defined by the
South Carolina Trade Secrets Act) relating to the Company or any of its
affiliated companies, and their respective businesses, which shall have been

                                     Page 7
<PAGE>   8

obtained by the Employee during the Employee's employment by the Company or any
of its affiliated companies. After termination of Employee's employment with the
Company, the Employee shall not, without the prior written consent of the
Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the Company
and those designated by it. Upon the termination or expiration of his employment
hereunder, Employee agrees to deliver promptly to the Company all Company files,
customer lists, management reports, memoranda, research, Company forms,
financial data and reports and other documents supplied to or created by him in
connection with his employment hereunder (including all copies of the foregoing)
in his possession or control and all of the Company's equipment and other
materials in his possession or control.

8. Assignment. The parties acknowledge that this Agreement has been entered into
due to, among other things, the special skills of Employee, and agree that
Employee may not assign any of his rights or delegate any of his duties or
obligations under this Agreement. The rights and obligations of Company under
this Agreement shall inure to the benefit of and shall be binding upon the
successors and assigns of the Company.

9. Notices. All notices, requests, demands, and other communications required or
permitted hereunder shall be in writing and shall be deemed to have been duly
given if delivered or seven days after mailing if mailed, first class, certified
or registered mail, postage prepaid:

                  To the Company:   TriVergent Communications, Inc.
                                    200 N. Main Street
                                    Suite 303
                                    Greenville, SC 29601

                  To Employee:      _____________________________

                                    _____________________________

                                    _____________________________

                  Any party may change the address to which notices, requests,
                  demands, and other communications shall be delivered or mailed
                  by giving notice thereof to the other party in the same manner
                  provided herein.

10. Provisions Severable. If any provision or covenant, or any part thereof, of
this Agreement should be held by any court to be invalid, illegal or
unenforceable, either in whole or in part, such invalidity, illegality or
unenforceability shall not affect the validity, legality or enforceability of
the remaining provisions or covenants, or any part thereof, of this Agreement,
all of which shall remain in full force and effect.

11. Dispute Resolution.

         11.1 Mediation. If a dispute arises out of or in any way relates to
this Agreement or Employee's employment, and if the dispute cannot be settled
through negotiation, the parties agree first to try in good faith to settle the
dispute by mediation before resorting to arbitration, litigation, or some other
formal dispute resolution procedure. Any such dispute shall be submitted to a
mediator selected by mutual agreement of the parties. Unless the parties agree
to an alternative arrangement, the mediator's fee and expenses shall be equally
divided between the parties.

                                     Page 8
<PAGE>   9

         11.2 Arbitration. Should any dispute arising out of or in any way
relating to this Agreement or Employee's employment or the termination of
Employee's employment not be resolved by negotiation or mediation, the parties
agree to waive their right to a jury trial and agree to submit the dispute to
arbitration. Unless otherwise provided herein, the arbitration shall be
conducted by a single arbitrator in accordance with the National Rules for the
Resolution of Employment Disputes published by the American Arbitration
Association. The arbitration shall be conducted in Greenville County, South
Carolina. The arbitrator shall be selected by mutual agreement of the parties.
If the parties cannot agree on an arbitrator within thirty (30) days after
written request for arbitration is made by one party to the controversy, a
neutral arbitrator shall be appointed according to the procedures set forth in
the American Arbitration Association National Rules for the Resolution of
Employment Disputes. In rendering the award, the arbitrator shall have the
authority to resolve only the legal dispute between the parties, shall not have
the authority to abridge or enlarge substantive rights or remedies available
under existing law, and shall determine the rights and obligations of the
parties according to the substantive and procedural laws of South Carolina. In
addition, the arbitrator's decision and award shall be in writing and signed by
the arbitrator, and accompanied by a written concise explanation of the basis of
the award. The award rendered by the arbitrator shall be final and binding, and
judgment on the award may be entered in any court having jurisdiction thereof.
The arbitrator is authorized to award any party a sum deemed proper for the
time, expense, and trouble of arbitration, including arbitration fees and
attorneys' fees.

         11.3 Types of Claims. All legal claims brought by Employee against
Company related to this Agreement, the employment relationship, terms and
conditions of employment, and/or termination from employment are subject to this
dispute resolution procedure. These include, by way of example and without
limitation, any legal claims based on alleged discrimination or retaliation on
the basis of race, sex, religion, national origin, age or disability, whether
based on state or federal law; workers' compensation retaliation; defamation;
invasion of privacy; infliction of emotional distress and/or breach of an
express or implied contract. The above terms notwithstanding, any legal claim
brought by Employee or Company for or relating to workers' compensation,
unemployment compensation benefits, breach, violation or misappropriation of
Company's trade secrets, provisions of any confidentiality agreements or
noncompete agreements, and claims alleging status or membership with regard to
any employment benefit plan are not subject to this dispute resolution
procedure.

12. Waiver. Failure of either party to insist, in one or more instances, on
performance by the other in strict accordance with the terms and conditions of
this Agreement shall not be deemed a waiver or relinquishment of any right
granted in this Agreement or of the future performance of any such term or
condition. No waiver shall be valid unless in writing signed by the party sought
to be bound.

13. Representations. Employee represents and warrants to Company that he is
subject to no agreement or obligation (including, without limitation, any
non-competition or confidentiality agreement) or bound by any contract with any
Person, corporation, or other entity that would prohibit him from taking the
position described herein or in any way interfere with the performance of his
duties and obligations to Company under this Agreement. Employee agrees to hold
Company and its officers, directors, employees, managers, members, shareholders
and agents harmless from any claim (and the expenses associated therewith) by a
third party under a non-competition, confidentiality or similar agreement.

14. Amendments and Modifications. This Agreement may be amended or modified only
by a writing signed by other parties hereto. The parties hereby agree that this
Agreement contains the entire agreement and

                                     Page 9
<PAGE>   10

understanding by and between the parties with respect to Employee's employment,
and no representations, promises, agreements, or understandings, written or
oral, relating to the employment of the Employee by the Company not contained
herein shall be of any force or effect.

15. Assignment of Intellectual Property. Employee agrees to promptly disclose to
Company, in writing, all inventions, discoveries and improvements devised by
Employee as part of his employment duties with Company, and hereby transfers and
assigns to Company all rights, title and interest, domestic and foreign, to such
inventions, etc. At the request of Company, Employee will execute, either during
or after his employment with Company, any documents, including applications for
patents and assignments, necessary or desired by Company. Employee will
cooperate with the filing and prosecution of any such patent applications
whenever Company so requests without further compensation. Employee attaches
hereto a complete list of all inventions that Employee made or conceived prior
to his employment by Company, if any exist, and Company agrees that these
inventions shall be excluded from this Agreement.

16. Governing Law. The validity and effect of this agreement shall be governed
by and construed and enforced in accordance with the laws of the State of South
Carolina, without giving effect to South Carolina's rules of conflicts law, and
regardless of the place or places of its physical execution or performance.

17. Captions. The captions contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement.

18. Counterparts. This Agreement may be executed in one or more counterparts,
all of which taken together shall constitute one instrument.

                          SIGNATURES ON FOLLOWING PAGE

                                    Page 10
<PAGE>   11

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

Witness                            Employee

-------------------------------         ----------------------------------------
                                        Daniel Sterling

                                        TRIVERGENT COMMUNICATIONS, INC.

-------------------------------         By:
                                           -------------------------------------
                                        Its:
                                            ------------------------------------

                                    Page 11

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