Document:

SECOND AMENDED AND RESTATED
                             STOCKHOLDERS AGREEMENT

         THIS SECOND AMENDED AND RESTATED STOCKHOLDERS AGREEMENT (this
"Agreement"), dated as of the 10th day of April, 2000, is by and among RICHARD
T. AAB, a resident of Pittsford, New York ("Aab"), MELRICH ASSOCIATES, L.P., a
New York limited partnership ("Melrich"), TANSUKH V. GANATRA, a resident of
Charlotte, North Carolina ("Ganatra"), and SUPER STAR ASSOCIATES LIMITED
PARTNERSHIP, a Georgia limited partnership ("Super STAR"). Aab, Melrich, Ganatra
and Super STAR are sometimes referred to individually as a "Stockholder" and
collectively as the "Stockholders."

                                   BACKGROUND:

         A. US LEC Corp., a Delaware corporation (the "Corporation"), has
Seventeen Million Seventy-Five Thousand Two Hundred Seventy-Two (17,075,272)
shares of authorized Class B Common Stock, par value $.01 per share ("Class B
Common"), of which Sixteen Million Eight Hundred Thirty-Four Thousand Two
Hundred Seventy (16,834,270) shares are currently issued and outstanding (as
defined in Section 6, the "Shares").

         B. The Stockholders own and hold of record the following Shares:

                      STOCKHOLDER                             NUMBER OF SHARES
                      -----------                             ----------------

                  Richard T. Aab                                   8,480,770

                  Melrich Associates, L.P.                         4,309,500

                  Tansukh V. Ganatra                                 294,000

                  Super STAR Associates
                  Limited Partnership                              3,750,000

         C. The Stockholders believe that it is in their best interest to enter
into specific agreements concerning the disposition, conversion and voting of
the Shares.

         D. Concurrently with the execution of this Agreement, the Corporation
and affiliates of Bain Capital, Inc. and Thomas H. Lee Partners, L.P. (the
"Investors") are entering into a Preferred Stock Purchase Agreement (the
"Purchase Agreement") which provides for, among other things, the purchase by
the Investors of 200,000 shares of the Corporation's Series A Convertible
Preferred Stock for an aggregate purchase price of $200,000,000.

         E. The Stockholders believe the transactions contemplated by the
Purchase Agreement are in the best in of the Corporation and will be of direct
benefit to them by providing the Corporation with additional capital to expand
and diversify its telecommunications business and potentially increase the value
of the Shares.

<PAGE>

         F. As an inducement to the Investors to enter into the Purchase
Agreement, and the other agreements contemplated by the Purchase Agreement, the
Class B Stockholders are willing to enter into and be bound by this Agreement
pursuant to which the Stockholders agree to amend and restate certain provisions
concerning the disposition, conversion and voting of the Shares contained in the
Amended and Restated Shareholders Agreement, dated January 1, 1998, and the
irrevocable proxy executed in connection therewith, both of which shall be
superceded in their entirety by this Agreement and the irrevocable proxies in
the forms attached hereto as Exhibit A and Exhibit B.

         Accordingly, in consideration of the premises and of the mutual
covenants and agreements contained herein, and for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Stockholders do hereby agree as follows:

         1.       Voting of the Shares

                  (a) For so long as Aab is living and not Incapacitated (as
         defined below), each Stockholder other than Aab shall vote all of his,
         hers or its Shares (whether now owned or hereafter acquired), whether
         for directors or for any other purpose, in the same manner as Aab.

                  (b) For so long as Aab is living and not Incapacitated, each
         Stockholder other than Aab shall give his, hers or its irrevocable
         proxy to Aab, contemporaneously with the execution and delivery of this
         Agreement and hereafter from time to time at the request of Aab, by
         executing and delivering to Aab an irrevocable proxy in the form of the
         proxy attached hereto as Exhibit A. Aab shall vote the Shares to elect
         one (1) designee of Ganatra and one (1) designee of Aab as Class B
         Directors (as defined in the Restated Certificate of the Corporation
         (the "Certificate")).

                  (c) If Aab shall die or become Incapacitated prior to such
         time as Ganatra dies or becomes Incapacitated, the irrevocable proxy
         granted pursuant to Section 1(b) of this Agreement shall terminate and,
         for so long as Ganatra is living and not Incapacitated, each
         Stockholder other than Ganatra shall vote all of his, hers or its
         Shares (whether now owned or hereafter acquired), whether for directors
         or for any other purpose, in the same manner as Ganatra.

                  (d) If Aab shall die or become Incapacitated prior to such
         times as Ganatra dies or becomes Incapacitated, for so long as Ganatra
         is living and not Incapacitated, each Stockholder other than Ganatra
         shall give his, hers or its irrevocable proxy to Ganatra, and
         thereafter from time to time at the request of Ganatra, by executing
         and delivering to Ganatra an irrevocable proxy in the form of proxy
         attached hereto as Exhibit B.

                  (e) If, at any time subsequent to becoming Incapacitated, Aab
         shall cease being Incapacitated, Sections 1(a) and (b) of this
         Agreement shall again become operative as if this Agreement had been
         executed and delivered at such time and the irrevocable proxy given
         pursuant to Section 1(d) shall terminate.

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<PAGE>

         2. Offer Upon Elective Conversion. If any Stockholder desires to effect
an elective conversion of any Shares (whether now owned or hereafter acquired)
into shares of Class A Common Stock of the Corporation ("Class A Common"), as
provided for in the Restated Certificate, the Stockholder shall first submit to
all other Stockholders a written notice of the Stockholder's intent to convert
his, her or its Shares into Class A Common, along with an offer to sell or
exchange all or part of the Shares proposed to be converted, pursuant to this
Section 2 (the "Conversion Notice"). Each Conversion Notice shall constitute
dual, binding offers by the offering Stockholder to (A) sell all or part of such
Shares for cash (the "Cash Offer") or (B) exchange all or part of such Shares
for an equal number of shares of Class A Common (the "Exchange Offer").

                  (a) The offered Shares shall be allocated among the other
         Stockholders on the basis of the percentage of Shares then owned by
         them (excluding Shares owned by the offering Stockholder). Each offeree
         Stockholder shall have the right to purchase (by cash or exchange of
         shares of Class A Common) all or part of his, her or its allocated
         portion of the offered Shares.

                  (b) Within ten (10) days of delivery of the Conversion Notice,
         each offeree Stockholder shall provide written notice to the offering
         Stockholder and all other Stockholders of his, her or its election to
         consider acceptance of either the Cash Offer or the Exchange Offer and,
         if he, she or it intends to consider a Cash Offer, the expiration date
         for the six month period referred to in subsection (c)(ii) below (if
         applicable). An election by an offeree Stockholder to consider the Cash
         Offer shall automatically terminate the Exchange Offer to such
         Stockholder and an election by an offeree Stockholder to consider the
         Exchange Offer shall automatically terminate the Cash Offer to such
         Stockholder.

                  (c) For those offeree Stockholders electing to consider the
         Cash Offer (the "Cash Offerees"), the Cash Offer shall continue to be a
         binding offer of the offering Stockholder to sell until the later of,
         (i) the expiration of thirty (30) days after delivery of the Conversion
         Notice or (ii) 5:00 p.m. on the first business day subsequent to the
         expiration of the six month period following consummation, by any Cash
         Offeree, of any transaction treated as a nonexempt sale under Section
         16(b) of the Securities Exchange Act of 1934, as amended (the later of
         such times is referred to herein as the "Cash Offer Expiration Date").
         If any Cash Offeree does not purchase all of his, her or its allocated
         portion of the offered Shares on or before the Cash Offer Expiration
         Date, the offering Stockholder shall give written notice to the other
         Cash Offerees, and such other Cash Offerees shall have an additional
         ten (10) days from the delivery of such notice to elect to purchase
         such declined Shares at the same price and upon the same terms
         previously offered to the declining Cash Offeree (and the Cash Offer
         shall continue to be a binding offer with respect to such declined
         shares until the expiration of such additional ten (10) day period).
         Any such Shares shall be allocated to the remaining Cash Offeree(s) on
         the basis of the percentage of Shares owned by them (excluding Shares
         owned by the offering Stockholder, the declining Cash Offeree(s), and
         the Exchange Offeree(s), as defined below).

                  (d) For those offeree Stockholders electing to consider the
         Exchange Offer (the "Exchange Offerees"), the Exchange Offer shall
         continue to be a binding offer of the offering Stockholder to exchange
         Shares for an equal number of shares of Class A Common

                                       3
<PAGE>

         until the expiration of thirty (30) days after delivery of the
         Conversion Notice (the "Exchange Offer Expiration Date"). If any
         Exchange Offeree does not exchange all of his, her or its allocated
         share of the offered Shares on or before the Exchange Offer Expiration
         Date, the offering Stockholder shall give written notice to the other
         Exchange Offerees, and such other Exchange Offerees shall have an
         additional ten (10) days from the delivery of such notice to elect to
         acquire such declined Shares upon the same terms previously offered to
         the declining Exchange Offeree (and the Exchange Offer shall continue
         to be a binding offer with respect to such declined Shares until the
         expiration of such additional ten (10) day period). Any such Shares
         shall be allocated to the remaining Exchange Offeree(s) on the basis of
         the percentage of Shares owned by them (excluding Shares owned by the
         offering Stockholder, the declining Exchange Offeree(s), and the Cash
         Offeree(s)).

                  (e) Purchase Price Payable by Cash Offerees. The cash purchase
         price of each Share for purposes of this Section 2 shall be the average
         of the closing prices of a share of Class A Common for the ten (10)
         trading days immediately following the date on which Conversion Notice
         is given by the offering Stockholder, as reported in The Wall Street
         Journal or other reporting services acceptable to all parties hereto.
         If at the time the purchase price is to be determined, shares of the
         Class A Common are not publicly traded, the purchase price shall be
         determined as follows:

(
                                                          (  8 x EBITDA
                                                             ----------
                  Per Share Purchase Price  =  .75      x    Total A&B    )

                  Where EBITDA =  The Corporation's earnings before interest,
                                  taxes, depreciation and amortization as shown
                                  on the most recent consolidated year end
                                  financial statements of the Corporation.

                  and Total A&B = Total issued and outstanding shares of the
                                  Corporation's Class A Common and Class B
                                  Common at the time the purchase price is
                                  determined.

                  (f) Terms of Purchase and Payment for Cash Offerees. If any
         Cash Offeree elects to purchase Shares in accordance with this Section
         2, the purchase must be consummated at the principal office of the
         Corporation in the State of North Carolina on the last day the Cash
         Offer remains binding (or at such other time and place as may otherwise
         be acceptable to the selling Stockholder and the purchasing
         Stockholder). Payment of the purchase price of the Shares shall be made
         at closing by wire transfer of immediately available funds to an
         account designated by the selling Stockholder or by certified check
         payable to the selling Stockholder. Upon tender of the purchase price,
         the selling Stockholder shall deliver to the purchasing Stockholder one
         or more certificates representing all Shares being purchased, duly
         endorsed over to the purchaser or accompanied by duly executed stock
         powers. The Stockholders shall cause the Corporation to cooperate with
         selling and purchasing Stockholders in connection with such offers and
         closing, including, but not limited to, providing appropriately
         denominated certificates on a timely basis.

                                       4
<PAGE>

                  If, pursuant to this Section 2, the Cash Offer Expiration Date
         occurs on a date which is subsequent to the thirtieth (30th) day
         subsequent to delivery of the Conversion Notice, then on the thirtieth
         day subsequent to delivery of the Conversion Notice, the Cash Offerees
         (other than those who have, prior to such date either purchased their
         allocated portion of the offered Shares or have notified the offering
         Stockholder of their decision not to purchase their allocated share of
         the offered Shares) shall submit a non-refundable deposit (by wire
         transfer of immediately available funds to an account designated by the
         offering Stockholder or by certified check payable to the offering
         Stockholder) to the offering Stockholder in an amount equal to
         twenty-five percent (25%) of the purchase price of such Stockholder's
         share of offered Shares (not previously purchased or declined). In the
         event that a Cash Offeree who has submitted a deposit does not purchase
         his, her or its allocated portion of the offered Shares on or before
         the Cash Offer Expiration Date, his, her or its deposit shall be
         forfeited.

                  (g) Terms of Closing for Exchange Offerees. If any Exchange
         Offeree elects to accept the Exchange Offer in accordance with this
         Section 2, the exchange must be consummated at the principal office of
         the Corporation in the State of North Carolina on the last day on which
         the Exchange Offer remains binding (or at such other time or place as
         may otherwise be acceptable to the selling Stockholder and the
         purchasing Stockholder). At the closing, the accepting Exchange
         Offerees shall deliver to the selling Stockholder one or more
         certificates representing all shares of Class A Common being exchanged,
         duly endorsed over to the selling Stockholder or accompanied by duly
         executed stock powers, and the selling Stockholder shall deliver to the
         Exchange Offerees one or more certificates representing all Shares
         being exchanged, duly endorsed over to the accepting Exchange Offerees
         or accompanied by duly executed stock powers. The Stockholders shall
         cause the Corporation to cooperate with the participating Stockholders
         in connection with such exchange and closing, including, but not
         limited to, providing appropriately denominated certificates on a
         timely basis.

         3. Transfer of Shares. The Stockholders hereby agree that, unless all
of the other Stockholders give their written consent thereto, no Stockholder
shall make a voluntary transfer or otherwise dispose of (as defined in Section
6(c) herein) any of his, her or its Shares, whether now owned or hereafter
acquired, to any party other than another Stockholder, except that such Shares
may be transferred to a Permitted Transferee (as defined in Article IV of the
Certificate), but only if, simultaneously with the transfer of such Shares, such
Permitted Transferee becomes a signatory to this Agreement as a "Stockholder"
(by executing and delivering to all other Stockholders a signature page by which
he, she or it agrees without condition to be bound by this Agreement as a
"Stockholder," and provides an address for the giving of notices, and executes
and delivers to Aab or Ganatra, as applicable, an irrevocable proxy as required
by Section 1 of this Agreement.

         4.       Divorce or Legal Separation of a Stockholder

                  (a) Notwithstanding anything herein to the contrary, if a
         spouse of a Stockholder has received Shares as a Permitted Transferee
         (as defined in Article IV of the Certificate) and such spouse is
         subsequently no longer legally married to or is legally separated from
         such Stockholder, then such Stockholder shall have an option to
         purchase any or all of such Shares (by cash payment or exchange). The
         option shall constitute a binding offer of the

                                       5
<PAGE>

         spouse to sell any or all of the Shares to the Stockholder at the same
         price per share and upon the same terms as is provided in Section 2
         hereof, except that the cash purchase price shall be determined based
         on the closing prices of a share of Class A Common for the ten (10)
         trading days immediately following the date of the legal separation or
         divorce of such spouse and Stockholder and the option shall extend from
         the date of the divorce or legal separation until the applicable
         expiration date (excluding the additional ten day periods) provided in
         Section 2 (calculated by using the date of the divorce or legal
         separation rather than the date of delivery of the Conversion Notice).

                  (b) If such Stockholder does not purchase all such Shares of
         his or her spouse pursuant to the option described in (a), then (i)
         such Stockholder shall give written notice (a "Divorce Notice") to all
         other Stockholders, and (ii) the other Stockholders shall have an
         option to acquire all or part of the declined Shares. This option shall
         constitute a binding offer of such spouse to sell all or part of the
         Shares to the other Stockholders at the same price per share and upon
         the same terms as provided in Section 2 hereof, except that the cash
         purchase price shall be determined based on the closing prices of a
         share of Class A Common for the ten (10) trading days immediately
         following the date of the legal separation or divorce of such spouse
         and Stockholder. The option shall confer upon each such other
         Stockholder the right to purchase (by cash payment or exchange) his,
         her or its allocated portion of the declined Shares (allocated pro rata
         based on the Shares owned by all Stockholders other than the spouse and
         the declining Stockholder), and shall extend, with regard to each
         Stockholder, from the delivery of the Divorce Notice to such other
         Stockholder until the applicable expiration date (including but not
         limited to the additional ten day periods) provided in Section 2
         (calculated by using the date of the delivery of the Divorce Notice
         rather than the date of delivery of the Conversion Notice).

         5. Endorsement on Stock Certificate. The Stockholders shall use their
best efforts to cause each certificate representing Shares at any time owned by
any Stockholder to bear the following legend prominently displayed thereon:

                  "THE SHARES REPRESENTED BY THIS CERTIFICATE, AND THE TRANSFER
         HEREOF, ARE SUBJECT TO THE TERMS AND PROVISIONS OF THAT CERTAIN AMENDED
         AND RESTATED STOCKHOLDERS AGREEMENT DATED AS OF JANUARY 1, 1998, AS
         AMENDED FROM TIME TO TIME, A COPY OF WHICH MAY BE OBTAINED FROM ANY
         STOCKHOLDER OWNING SHARES OF CLASS B COMMON STOCK UPON REQUEST."

         6.       Certain Interpretations and Definitions.  As used in this
                  Agreement:

                  (a) "Stockholder" or "Stockholders" means stockholders of the
         Corporation who are parties to this Agreement as provided on page 1
         hereof, and any successor in interest or transferee of any Shares of
         such Stockholder who purchased shares in accordance with this
         Agreement.

                  (b) "Shares" means any outstanding shares of Class B Common
         Stock of the Corporation now owned (as shown in the Background recitals
         hereto) or hereafter acquired

                                       6
<PAGE>

         by any Stockholder, any shares of Class B Common Stock distributed with
         respect to any such shares in a stock split, stock dividend or other
         recapitalization or reorganization, and any other outstanding shares of
         the Corporation that otherwise become subject to this Agreement by
         written agreement among the parties.

                  (c) The terms "transfer", "dispose of" and/or "disposition",
         when used with respect to shares, mean and include any sale,
         assignment, transfer, conveyance, gift, encumbrance, pledge,
         hypothecation, equitable distribution or other disposition of Shares
         (whether voluntary, involuntary, or otherwise), including permitting a
         levy or attachment on the Shares.

                  (d) An "involuntary" transfer or disposition of shares means
         (i) a testamentary or intestate transfer or disposition made incident
         to the death of a Stockholder, (ii) a transfer made in connection with
         the divorce or separation of a Stockholder pursuant to a property
         settlement agreement that is filed for public record, or (iii) a
         transfer made pursuant to an order issued by a court of competent
         jurisdiction in connection with the involuntary bankruptcy of, or the
         appointment of a receiver for, a Stockholder.

                  (e) A "voluntary" transfer or disposition of Shares refers to
         any transfer or disposition other than an involuntary transfer or
         disposition.

                  (f) "Incapacitated" means under any one or more of the
         following circumstances: (i) during any period that the individual is
         legally incompetent as determined by a court of competent jurisdiction;
         (ii) during any period beginning when two physicians licensed to
         practice medicine certify in writing that, in their opinion, the
         individual, as a result of illness, age or other cause, no longer has
         the capacity to act prudently or effectively in financial affairs and
         continuing until two such physicians (whether or not those making the
         initial determination) certify in writing that, in their opinion, the
         individual's capacity is restored; or (iii) during any period that a
         person (other than such individual) has evidence that the individual is
         absent without explanation or is being detained against his will under
         circumstances in which he does not have the capacity to act prudently
         or effectively in financial affairs.

         7. Term. The term of this Agreement shall commence on the date hereof
and shall continue in effect until January 1, 2010. Thereafter, this Agreement
shall automatically renew for successive one (1) year terms unless all of the
Stockholders then holding Shares elect to terminate this Agreement as of the end
of the then current term (initial or renewal). Notwithstanding the foregoing,
Section 1 hereof shall be of no further force or effect upon the last to occur
of:

                  (a)      The death or Incapacity of Aab; or

                  (b)      The death or Incapacity of Ganatra.

         8. Notices. Any and all notices, consents, offers, acceptances or other
communications made hereunder must be in writing and shall be deemed given and
delivered when delivered personally or by courier service, provided evidence of
receipt is obtained, or three (3) days after

                                       7
<PAGE>

mailing if mailed by registered or certified mail, return receipt requested,
postage prepaid, and addressed as follows (or to such other address that the
parties may from time to time designate in a writing sent to all other parties
of this Agreement in the manner required by this Section 8, except that any such
change of address notice shall only be effective upon receipt):

                  (a)      if to Richard T. Aab:

                           200 Meridian Centre, Suite 140
                           Rochester, New York 14618

                  (b)      if to Melrich Associates L.P.:

                           200 Meridian Centre, Suite 140
                           Rochester, New York 14618

                  (c)      if to Tansukh V. Ganatra:

                           6523 Ashdale Place
                           Charlotte, North Carolina  28215

                  (d)      if to Super STAR Associates Limited Partnership:

                           6523 Ashdale Place
                           Charlotte, North Carolina  28215

                  (e)      Copies of any such correspondence shall also be sent
                           to:

                           US LEC Corp.
                           401 North Tryon Street, Suite 1000
                           Charlotte, North Carolina 28202
                           Attention:  General Counsel

                           and

                           Moore & Van Allen, PLLC
                           100 North Tryon Street, Floor 47
                           Charlotte, North Carolina 28202-4003
                           Attention:  Barney Stewart III

         9. Severability. If any such provision of this Agreement shall be
invalid or unenforceable for any reason, the other provisions shall continue to
be effective and binding and this Agreement shall be construed as if the invalid
or unenforceable provision were omitted. If any provision of this Agreement is
unenforceable after a certain period of years from the date hereof due to the
requirements of any state laws, the remainder of the Agreement shall remain
enforceable and binding in accordance with its terms.

                                       8
<PAGE>

         10. Binding Effect. This Agreement shall be binding upon the
Stockholders, and their respective heirs, legal representatives, executors,
administrators, successors and permitted assigns. Any rights given or duties
imposed upon the estate of a deceased Stockholder shall inure to the benefit of
and be binding upon the legal representative of such deceased Stockholder's
estate in his or her fiduciary capacity.

         11. Entire Agreement, Amendment, Waiver. This Agreement contains the
entire agreement of the parties hereto with respect to the subject matter
hereof, and supersedes any and all other agreements, either written or oral,
among the parties hereto regarding the same subject matter. The provisions of
this Agreement may be amended, modified or waived only as provided for herein or
on unanimous written consent of the Stockholders. A written waiver provided
pursuant to this Section 11 shall be effective only in the specific instance and
for the specific purpose for which given. No failure or delay on the part of any
Stockholder in the exercise of any right, power or privilege hereunder shall
operate as a waiver of any such right, power or privilege nor shall any such
failure or delay preclude any other or further exercise hereof.

         12. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be deemed an
original, and it shall not be necessary in making proof of this Agreement to
produce or account for more than one such counterpart.

         13. Captions. The captions herein are inserted only as a matter of
convenience and for reference and in no way define, limit or describe the scope
of this Agreement nor any provisions hereof.

         14. Governing Law. This Agreement shall be governed by and construed
and interpreted in accordance with the laws of the State of Delaware.

         15.      Arbitration.

                  (a) Any dispute, controversy, difference or claim arising out
         of, relating to or in connection with this Agreement, any transaction
         hereunder, or the breach hereof shall be decided by arbitration in
         accordance with the Commercial Arbitration Rules of the American
         Arbitration Association then in effect, except as otherwise agreed by
         the parties. Any such arbitration shall be conducted on the earliest
         possible date and conducted in Charlotte, North Carolina. The arbiter's
         award shall be final and binding on the parties hereto and judgment
         upon the award may be entered in any court having jurisdiction thereof.
         Expenses in the arbitration shall be apportioned between the parties by
         the arbiter. The arbitration award may include reasonable attorneys'
         fees from the other party. No action, regardless of form, arising out
         of this Agreement may be brought more than three (3) years after the
         cause of action for such action has accrued.

                  (b) Notwithstanding subsection (a), either party may, if it
         believes that it requires or is entitled to injunctive relief, file a
         civil action in any court having jurisdiction seeking injunctive
         relief. Any claim or demand for monetary damages shall, however, be
         governed exclusively by the provisions for arbitration set forth in
         subsection (a).

                                       9
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement under seal as of the date first above written.

                         /s/ Richard T. Aab
                         ----------------------------------------------
                         Richard T. Aab

                         MELRICH ASSOCIATES, L.P.

                         By:      /s/ Richard T. Aab
                                  -------------------------------------
                                  Richard T. Aab, General Partner

                         By:      /s/ Joyce M. Aab
                                  -------------------------------------
                                  Joyce M. Aab, General Partner

                         /s/ T. V. Ganatra
                         ----------------------------------------------
                         Tansukh V. Ganatra

                         SUPER STAR ASSOCIATES
                         LIMITED PARTNERSHIP

                         By:      /s/ T. V. Ganatra
                                  -------------------------------------
                                    Tansukh V. Ganatra, General Partner

                                       10EXHIBIT 10.3

                                 AMENDMENT NO. 2
                                       TO
                           SECOND AMENDED AND RESTATED
                           LOAN AND SECURITY AGREEMENT

                  AMENDMENT NO. 2, dated as of November 10, 2000 (this
"Amendment"), to the Second Amended and Restated Loan and Security Agreement (as
amended, supplemented or otherwise modified from time to time, the "Loan
Agreement"), dated as of December 20, 1999, among certain operating subsidiaries
of US LEC CORP., as Borrowers, US LEC CORP. ("Holdings"), as Guarantor and
Borrower Representative, GENERAL ELECTRIC CAPITAL CORPORATION, as Lender and
Administrative Agent, FIRST UNION NATIONAL BANK, as Lender, FIRST UNION
SECURITIES, INC., as Syndication Agent, WACHOVIA BANK, N.A., as Lender and
Documentation Agent, and the other Lenders party thereto.

                              W I T N E S S E T H :
                              - - - - - - - - - -

                  WHEREAS, the Loan Parties have requested the Lenders to amend
certain provisions of the Loan Agreement; and

                  WHEREAS, the Lenders signatory hereto have agreed to amend the
Loan Agreement on the terms and subject to the conditions herein provided;

                  NOW, THEREFORE, in consideration of the foregoing premises and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto agree to the following:

         Section 1. Defined Terms. Capitalized terms used, but not otherwise
defined, herein have the meanings set forth in the Loan Agreement.

         Section 2. Amendments. As of the Effective Date (as hereinafter
defined), the Loan Agreement is amended as follows:

                  (a) By deleting the definition of "EBITDA" in Section 1.1 of
the Loan Agreement in its entirety and inserting in lieu thereof the following
language:

                           " `EBITDA': for any period, the sum of consolidated
                  net income (excluding extraordinary gains and losses and any
                  losses resulting from resolution of disputed reciprocal
                  compensation and disputed access revenues, which are reflected
                  in Borrowers' Financial Statements for the Fiscal Quarter
                  ended September 30, 2000), depreciation, amortization, Net
                  Interest Expense, tax expense and non-cash charges and
                  non-cash losses from the amount of any compensation deduction
                  as the result of any grant of Stock to employees, officers,
                  directors or consultants (other than charges representing
                  accruals of future cash expenses and any non-cash

<PAGE>

                  gains from any reversal of a charge by reason of a decrease in
                  the value of any Stock or Stock Equivalent)."

                  (b) By deleting the phrase "beginning with the Fiscal Quarter
ending on March 31, 2002," from the definition of "Fixed Charges Coverage Ratio"
in Section 1.1 of the Loan Agreement.

                  (c) By adding the following new definition to Section 1.1 of
the Loan Agreement to appear in its appropriate alphabetical order:

                           " `Gross PP&E': total property, plant and equipment,
                  excluding accumulated depreciation and amortization."

                  (d) By adding the following new definition to Section 1.1 of
the Loan Agreement to appear in its appropriate alphabetical order:

                           " `Net Senior Debt':  Senior Debt less Cash."

                  (e) By adding the following new definition to Section 1.1 of
the Loan Agreement to appear in its appropriate alphabetical order:

                           " `Perfection Certificate': a certificate
                  substantially in the form of Exhibit K."

                  (f) By deleting the amount "$1,500,000" from the definition of
"Permitted Debt" in Section 1.1 of the Loan Agreement and inserting in lieu
thereof "$2,000,000."

                  (g) By deleting the definition of "Quarterly Revenues" in
Section 1.1 of the Loan Agreement in its entirety and inserting in lieu thereof
the following language:

                           " `Quarterly Revenues': for any Fiscal Quarter,
                  revenues for such quarter (excluding, to the extent included
                  therein, any revenues and related losses from reciprocal
                  compensation and losses resulting from resolution of disputed
                  access revenues, which are reflected in Borrowers' Financial
                  Statements for the Fiscal Quarter ended September 30, 2000)
                  that are received from any third party entity which is not an
                  Affiliate of any Loan Party or the principal shareholders of
                  such Loan Party."

                  (h) By deleting the word "director" from the definition of
"Responsible Officer" in Section 1.1 of the Loan Agreement and inserting in lieu
thereof the words "vice president."

                  (i) By deleting the words "March 31, 2001" from the definition
of "Stage 1" in Section 1.1 of the Loan Agreement and inserting in lieu thereof
the words "September 30, 2002."

                                       2
<PAGE>

                  (j) By deleting the word "previous" from the definition of
"Stage 1" in Section 1.1 of the Loan Agreement and inserting in lieu thereof the
words "most recent."

                  (k) By inserting the following language after the phrase
"deliver to Administrative Agent and Lenders a certificate" in Section 8.1(c) of
the Loan Agreement:

                           ", including an update of the Perfection Certificate,
                  in form and substance reasonably satisfactory to
                  Administrative Agent,"

                  (l) By deleting Schedule 8.15 to the Loan Agreement in its
entirety and inserting in lieu thereof Attachment A hereto.

                  (m) By inserting Attachment B hereto as Exhibit K to the Loan
Agreement.

         Section 3. Representations and Warranties. Each Loan Party hereby
jointly and severally represents and warrants to the Administrative Agent and
each Lender, with respect to all Loan Parties, as follows:

                  (a) After giving effect to this Amendment, each of the
representations and warranties in Article 5 of the Loan Agreement and in the
other Loan Documents are true and correct in all material respects on and as of
the date hereof as though made on and as of such date, except to the extent that
any such representation or warranty expressly relates to an earlier date and
except for changes therein expressly permitted by the Loan Agreement.

                  (b) After giving effect to this Amendment, no Default or Event
of Default has occurred and is continuing as of the date hereof.

                  (c) The execution, delivery and performance by the Loan
Parties of this Amendment have been duly authorized by all requisite corporate
action on the part of the Loan Parties and will not violate any of the
Organizational Documents of any of the Loan Parties.

                  (d) This Amendment has been duly executed and delivered by
each Loan Party and each of this Amendment and the Loan Agreement as amended
hereby constitutes the legal, valid and binding obligation of the Loan Parties,
enforceable against the Loan Parties in accordance with their terms.

         Section 4. Conditions to Effectiveness. This Amendment shall become
effective as of September 30, 2000 (the "Effective Date") when the
Administrative Agent shall have received the following in form and substance
satisfactory to Administrative Agent:

                  (a) A Perfection Certificate, in form and substance reasonably
satisfactory to Administrative Agent.

                                       3
<PAGE>

                  (b) An amendment fee in the amount of $750,000 for the ratable
benefit of the Lenders.

                  (c) All Fees and Lenders' Expenses payable or reimbursable by
the Loan Parties as of the date hereof, including, without limitation, all
costs, fees and expenses of Administrative Agent, the Syndication Agent and
Lenders in connection with the preparation, execution and delivery of this
Amendment and the other instruments and documents to be delivered pursuant
hereto, including the reasonable fees and out-of-pocket expenses of counsel for
the Administrative Agent with respect thereto.

                  (d) Counterparts of this Amendment executed by each of the
Loan Parties, the Administrative Agent and the Requisite Lenders.

         Section 5. Reference to and Effect on the Loan Documents.

                  (a) As of the Effective Date, each reference in the Loan
Agreement and the other Loan Documents to "this Agreement," "hereunder,"
"hereof," "herein," or words of like import, shall mean and be a reference to
the Loan Agreement as amended hereby.

                  (b) Except to the extent amended hereby, the provisions of the
Loan Agreement and all of the other Loan Documents shall remain in full force
and effect and are hereby ratified and confirmed.

                  (c) The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein, operate as a waiver of
any right, power or remedy of the Lenders or the Administrative Agent under any
of the Loan Documents or constitute a waiver of any provision of any of the Loan
Documents.

                  (d) The Loan Parties hereby confirm that the security
interests and liens granted pursuant to the Loan Documents continue to secure
the Obligations and that such security interests and liens remain in full force
and effect.

         Section 6. Execution in Counterparts. This Amendment may be executed in
any number of counterparts and by different parties hereto in separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same instrument.
Receipt by the Administrative Agent of a facsimile copy of an executed signature
page hereof shall constitute receipt by the Administrative Agent of an executed
counterpart of this Amendment.

         Section 7. Governing Law. This Amendment shall be governed by and
construed and enforced in accordance with the law of the State of New York.

                                       4
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Amendment as of the date first above written.

                       Administrative Agent and Lender:

                       GENERAL ELECTRIC CAPITAL CORPORATION

                               By:      /s/  Michael H. Baum
                                      ---------------------------------
                                      Name:     Michael H. Baum
                                      Title:    Senior Vice President

                       Lenders:

                       FIRST UNION NATIONAL BANK

                               By:      /s/ Mark L. Cook
                                      ---------------------------------
                                      Name:     Mark L. Cook
                                      Title:    Senior Vice President

                       WACHOVIA BANK, N.A.

                               By:      /s/  Jeffrey J. Mance
                                      ---------------------------------
                                      Name:     Jeffrey J. Mance
                                      Title:    Vice President

                       FIRSTAR BANK, N.A.

                               By:      /s/ Suzanne E. Geiger
                                      ---------------------------------
                                      Name:     Suzanne E. Geiger
                                      Title:    Senior Vice President

                                       5
<PAGE>

                       PNC BANK, NATIONAL ASSOCIATION

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

                       BANK AUSTRIA CREDITANSTALT CORPORATE
                               FINANCE, INC.

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

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

                       IBM CREDIT CORPORATION

                               By:      /s/ Thomas S. Curcio
                                      ---------------------------------
                                      Name:     Thomas S. Curcio
                                      Title:    Manager of Credit

                      Borrower Representative and Guarantor:

                       US LEC CORP.

                               By:      /s/ Michael K. Robinson
                                      ---------------------------------
                                      Name:     Michael K. Robinson
                                      Title:    Executive Vice President and CFO

                                       6
<PAGE>

                                    Borrowers:

                                    US LEC OF ALABAMA INC.
                                    US LEC COMMUNICATIONS INC.
                                    US LEC OF FLORIDA INC.
                                    US LEC OF GEORGIA INC.
                                    US LEC OF MARYLAND INC.
                                    US LEC OF NORTH CAROLINA INC.
                                    US LEC OF PENNSYLVANIA INC.
                                    US LEC OF SOUTH CAROLINA INC.
                                    US LEC OF TENNESSEE INC.
                                    US LEC OF VIRGINIA L.L.C.

                               By:      /s/ Michael K. Robinson
                                      --------------------------------------
                                      Name:     Michael K. Robinson
                                      Title:    Executive Vice President and CFO

                                       7

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