Document:

Exhibit 10.4

 Exhibit 10.4 
  

 SECOND LIEN GUARANTEE AND COLLATERAL AGREEMENT 
 dated as of 
 July 31, 2007 
 among 
 INTERSTATE FIBERNET, INC., 

ITC^DELTACOM, INC., 
 the Subsidiaries of
Holdings 
 from time to time party hereto 
 and 
 CREDIT SUISSE, 
 as
Collateral Agent 
 THIS IS THE SECOND LIEN GUARANTEE AND COLLATERAL AGREEMENT REFERRED TO IN (A) THE FIRST LIEN GUARANTEE AND COLLATERAL AGREEMENT
OF EVEN DATE HEREWITH AMONG INTERSTATE FIBERNET, INC., ITC^DELTACOM, INC., THE SUBSIDIARIES OF HOLDINGS FROM TIME TO TIME PARTY THERETO AND CREDIT SUISSE, AS FIRST LIEN COLLATERAL AGENT, (B) THE INTERCREDITOR AGREEMENT OF EVEN DATE HEREWITH
AMONG INTERSTATE FIBERNET, INC., ITC^DELTACOM, INC., THE SUBSIDIARIES OF HOLDINGS FROM TIME TO TIME PARTY THERETO AND CREDIT SUISSE, AS FIRST LIEN COLLATERAL AGENT AND AS SECOND LIEN COLLATERAL AGENT, AND (C) THE OTHER SECURITY DOCUMENTS
REFERRED TO IN THE CREDIT AGREEMENTS REFERRED TO HEREIN. 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I	  	
		
	Definitions	  	
			
	 SECTION 1.01.
	  	 Second Lien Credit Agreement
	  	2
	 SECTION 1.02.
	  	 Other Defined Terms
	  	2
		
	ARTICLE II	  	
		
	Guarantee	  	
			
	 SECTION 2.01.
	  	 Guarantee
	  	7
	 SECTION 2.02.
	  	 Guarantee of Payment
	  	7
	 SECTION 2.03.
	  	 No Limitations, Etc
	  	7
	 SECTION 2.04.
	  	 Reinstatement
	  	8
	 SECTION 2.05.
	  	 Agreement To Pay; Subrogation
	  	8
	 SECTION 2.06.
	  	 Information
	  	8
		
	ARTICLE III	  	
		
	Pledge of Securities	  	
			
	 SECTION 3.01.
	  	 Pledge
	  	9
	 SECTION 3.02.
	  	 Delivery of the Pledged Collateral
	  	10
	 SECTION 3.03.
	  	 Representations, Warranties and Covenants
	  	10
	 SECTION 3.04.
	  	 Certification of Limited Liability Company Interests and Limited Partnership Interests
	  	12
	 SECTION 3.05.
	  	 Registration in Nominee Name; Denominations
	  	12
	 SECTION 3.06.
	  	 Voting Rights; Dividends and Interest, Etc
	  	12
		
	ARTICLE IV	  	
		
	Security Interests in Personal Property	  	
			
	 SECTION 4.01.
	  	 Security Interest
	  	14
	 SECTION 4.02.
	  	 Representations and Warranties
	  	16
	 SECTION 4.03.
	  	 Covenants
	  	17
	 SECTION 4.04.
	  	 Other Actions
	  	19
	 SECTION 4.05.
	  	 Covenants Regarding Patent, Trademark and Copyright Collateral
	  	22

 TABLE OF CONTENTS 
 (continued) 
  

					
	ARTICLE V	  	
		
	Remedies	  	
			
	 SECTION 5.01.
	  	 Remedies Upon Default
	  	24
	 SECTION 5.02.
	  	 Application of Proceeds
	  	26
	 SECTION 5.03.
	  	 Grant of License to Use Intellectual Property
	  	27
	 SECTION 5.04.
	  	 Securities Act, Etc
	  	27
		
	ARTICLE VI	  	
		
	Indemnity, Subrogation and Subordination	  	
			
	 SECTION 6.01.
	  	 Indemnity and Subrogation
	  	28
	 SECTION 6.02.
	  	 Contribution and Subrogation
	  	28
	 SECTION 6.03.
	  	 Subordination
	  	28
		
	ARTICLE VII	  	
		
	Miscellaneous	  	
			
	 SECTION 7.01.
	  	 Notices
	  	29
	 SECTION 7.02.
	  	 Security Interest Absolute
	  	29
	 SECTION 7.03.
	  	 Survival of Agreement
	  	29
	 SECTION 7.04.
	  	 Binding Effect; Several Agreement
	  	29
	 SECTION 7.05.
	  	 Successors and Assigns
	  	30
	 SECTION 7.06.
	  	 Collateral Agent’s Fees and Expenses; Indemnification
	  	30
	 SECTION 7.07.
	  	 Collateral Agent Appointed Attorney-in-Fact
	  	31
	 SECTION 7.08.
	  	 Applicable Law
	  	32
	 SECTION 7.09.
	  	 Waivers; Amendment
	  	32
	 SECTION 7.10.
	  	 WAIVER OF JURY TRIAL
	  	32
	 SECTION 7.11.
	  	 Severability
	  	33
	 SECTION 7.12.
	  	 Counterparts
	  	33
	 SECTION 7.13.
	  	 Headings
	  	33
	 SECTION 7.14.
	  	 Jurisdiction; Consent to Service of Process
	  	33
	 SECTION 7.15.
	  	 Termination or Release
	  	34
	 SECTION 7.16.
	  	 Additional Subsidiaries
	  	34
	 SECTION 7.17.
	  	 Right of Setoff
	  	35
	 SECTION 7.18.
	  	 Intercreditor Agreement Governs
	  	35
	 SECTION 7.19.
	  	 Obligations of Grantors
	  	35
	 SECTION 7.20.
	  	 Delivery of Collateral
	  	35

  

 ii 

 TABLE OF CONTENTS 
 (continued) 
  

					
	Schedules	  		  	
			
	 Schedule I
	  	 Subsidiary Guarantors
	  	
	 Schedule II
	  	 Equity Interests; Pledged Debt Securities
	  	
	 Schedule III
	  	 Intellectual Property
	  	
			
	Exhibits	  		  	
			
	 Exhibit A
	  	 Form of Supplement
	  	
	 Exhibit B
	  	 Form of Perfection Certificate
	  	

  

 iii 

 SECOND LIEN GUARANTEE AND COLLATERAL AGREEMENT dated as of July 31, 2007 (this
“Agreement”), among INTERSTATE FIBERNET, INC., a Delaware corporation (the “Borrower”), ITC^DELTACOM, INC., a Delaware corporation (“Holdings”), the Subsidiaries of Holdings
from time to time party hereto and CREDIT SUISSE (“Credit Suisse”), as second lien collateral agent (in such capacity, the “Collateral Agent”). 
 PRELIMINARY STATEMENT 
 Reference is made to (a) the Second Lien Credit
Agreement dated as of July 31, 2007 (as amended, supplemented or otherwise modified from time to time, the “Second Lien Credit Agreement”), among the Borrower, Holdings, the lenders from time to time party thereto (the
“Lenders”) and Credit Suisse, as administrative agent (in such capacity, the “Administrative Agent”), (b) the First Lien Credit Agreement dated as of July 31, 2007 (as amended, supplemented
or otherwise modified from time to time, the “First Lien Credit Agreement”), among the Borrower, Holdings, the lenders from time to time party thereto and Credit Suisse, as administrative agent, (c) the First Lien
Guarantee and Collateral Agreement dated as of July 31, 2007 (as amended, supplemented or otherwise modified from time to time, the “First Lien Guarantee and Collateral Agreement”), among the Borrower, Holdings, the
Subsidiaries of Holdings from time to time party thereto and Credit Suisse, as first lien collateral agent (in such capacity, the “First Lien Collateral Agent”), and (d) the Intercreditor Agreement dated as of
July 31, 2007 (as amended, supplemented or otherwise modified from time to time, the “Intercreditor Agreement”), among the Borrower, Holdings, the Subsidiaries of Holdings from time to time party thereto and Credit
Suisse, in its capacities as the Collateral Agent and as the First Lien Collateral Agent. 
 The Lenders have agreed to make loans to the
Borrower pursuant to, and upon the terms and conditions specified in, the Second Lien Credit Agreement. The obligations of the Lenders to make such loans to the Borrower are conditioned upon, among other things, the execution and delivery of this
Agreement by the Borrower and each Guarantor (such term and each other capitalized term used but not defined in this preliminary statement having the meaning given or ascribed to it in Article I). Each Guarantor is an affiliate of the Borrower,
will derive substantial benefits from the making of loans to the Borrower pursuant to the Second Lien Credit Agreement and is willing to execute and deliver this Agreement in order to induce the Lenders to make such loans. Accordingly, the parties
hereto agree as follows: 

 ARTICLE I 
 Definitions 
 SECTION 1.01. Second Lien Credit Agreement. (a) Capitalized
terms used in this Agreement and not otherwise defined herein have the meanings set forth in the Second Lien Credit Agreement. All capitalized terms defined in the New York UCC (as such term is defined herein) and not defined in this Agreement or
the Second Lien Credit Agreement have the meanings specified therein. All references to the Uniform Commercial Code shall mean the New York UCC. 
 (b) The rules of construction specified in Section 1.02 of the Second Lien Credit Agreement also apply to this Agreement. 
 SECTION 1.02. Other Defined Terms. As used in this Agreement, the following terms have the meanings specified below: 
 “Accounts Receivable” shall mean all Accounts and all right, title and interest in any returned goods, together with all rights, titles, securities and guarantees with respect thereto, including any rights to
stoppage in transit, replevin, reclamation and resales, and all related security interests, liens and pledges, whether voluntary or involuntary, in each case whether now existing or owned or hereafter arising or acquired. 
 “Administrative Agent” shall have the meaning assigned to such term in the preliminary statement. 
 “Article 9 Collateral” shall have the meaning assigned to such term in Section 4.01. 
 “Borrower” shall have the meaning assigned to such term in the preamble. 
 “Collateral” shall mean the Article 9 Collateral and the Pledged Collateral. 
 “Collateral Agent” shall have the meaning assigned to such term in the preamble. 
 “Copyright License” shall mean any written agreement, now or hereafter in effect, granting any right to any third person under
any copyright now or hereafter owned by any Grantor or that such Grantor otherwise has the right to license, or granting any right to any Grantor under any copyright now or hereafter owned by any third person, and all rights of such Grantor under
any such agreement. 
 “Copyrights” shall mean all of the following now owned or hereafter acquired by any Grantor:
(a) all copyright rights in any work subject to the copyright laws of the United States or any other country, whether as author, assignee, transferee or otherwise, and (b) all registrations and applications for registration of any such
copyright in the United States or any other country, including registrations, recordings, 

  

 2 

 
supplemental registrations and pending applications for registration in the United States Copyright Office (or any successor office or any similar office in
any other country), including those listed on Schedule III. 
 “Discharge of First Lien Obligations” shall have
the meaning assigned to such term in the Intercreditor Agreement. 
 “Excluded Collateral” shall mean (a) any
lease, license, contract, Instrument, Security, permit, property rights, franchise or agreement to which any Grantor is a party or any of its rights or interests thereunder if and for so long as the grant of a security interest under this Agreement
shall constitute or result in (i) the abandonment, invalidation or unenforceability of any right, title or interest of any Grantor therein or (ii) in a breach or termination pursuant to the terms of, or a default under, any such lease,
license, contract, Instrument, Security, permit, property rights, franchise or agreement (other than to the extent that any such term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor
provision or provisions) of any relevant jurisdiction or any other applicable law (including the Bankruptcy Code) or principles of equity); provided, however, that such security interest shall attach immediately at such time as the
condition causing such abandonment, invalidation or unenforceability shall be remedied and to the extent severable, shall attach immediately to any portion of such lease, license, contract, Instrument, Security, permit, property rights, franchise or
agreement that does not result in any of the consequences specified in (i) or (ii) above, (b) any Equipment owned by any Grantor that is subject to a purchase money security interest (as defined in Section 9-103 of the UCC),
(c) outstanding voting equity or other ownership interests of a Foreign Entity (as defined below) to the extent in excess of 65% of the voting power of all classes of equity or other ownership interests of such Foreign Entity entitled to vote,
(d) the Southern Assets and (e) any Trademark applications filed in the United States Patent and Trademark Office on the basis of any Grantor’s “intent to use” such Trademark, unless and until acceptable evidence of use of
the Trademark has been filed with the United States Patent and Trademark Office pursuant to Section 1(c) or Section 1(d) of the Lanham Act (15 U.S.C. 1051, et seq.), to the extent that granting a security interest in such Trademark
application prior to such filing would adversely affect the enforceability or validity of such Trademark application. 
 “Federal
Securities Laws” shall have the meaning assigned to such term in Section 5.04. 
 “First Lien Collateral
Agent” shall have the meaning assigned to such term in the preliminary statement. 
 “First Lien Credit
Agreement” shall have the meaning assigned to such term in the preliminary statement. 
 “First Lien Guarantee and
Collateral Agreement” shall have the meaning assigned to such term in the preliminary statement. 
  

 3 

 “First Lien Loan Documents” shall have the meaning assigned to the term
“Loan Documents” in the First Lien Credit Agreement. 
 “First Priority Liens” shall have the meaning
assigned to such term in the Intercreditor Agreement. 
 “Foreign Entity” shall mean, with respect to any Grantor,
any corporation, partnership, limited liability company or other business entity (i) which is organized under the laws of a jurisdiction other than a state of the United States or the District of Columbia and (ii) of which securities or
other ownership interests representing more than 50% of the equity, more than 50% of the ordinary voting power, more than 50% of the general partnership interests or more than 50% of the limited liability company membership interests are, at the
time of any determination is being made, owned directly by the Grantor. 
 “General Intangibles” shall mean all
“general intangibles” (as such term is defined in the New York UCC), including all choses in action and causes of action and all other intangible personal property of any Grantor of every kind and nature (other than Accounts) now owned or
hereafter acquired by any Grantor, including all rights and interests in partnerships, limited partnerships, limited liability companies and other unincorporated entities, corporate or other business records, indemnification claims, contract rights
(including rights under leases, whether entered into as lessor or lessee, Swap Agreements and other agreements), Intellectual Property, goodwill, registrations, franchises, tax refund claims and any letter of credit, guarantee, claim, security
interest or other security held by or granted to any Grantor to secure payment by an Account Debtor of any of the Accounts. 
 “Grantors” shall mean the Borrower and the Guarantors. 
 “Guarantors” shall mean
Holdings and the Subsidiary Guarantors. 
 “Holdings” shall have the meaning assigned to such term in the preamble.

 “Intellectual Property” shall mean all intellectual and similar property of any Grantor of every kind and nature
now owned or hereafter acquired by any Grantor, including inventions, designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential or proprietary technical and business information, know-how, show-how or other data or information,
software and databases and all embodiments or fixations thereof and related documentation, registrations and franchises, and all additions, improvements and accessions to, and books and records describing or used in connection with, any of the
foregoing. 
 “Intercreditor Agreement” shall have the meaning assigned to such term in the preliminary statement.

 “License” shall mean any Patent License, Trademark License, Copyright License or other license or sublicense
agreement relating to Intellectual Property to which any Grantor is a party, including those listed on Schedule III. 
  

 4 

 “Loans Documents” shall have the meaning assigned to the term “Loan
Documents” in the Second Lien Credit Agreement. 
 “New York UCC” shall mean the Uniform Commercial Code as from
time to time in effect in the State of New York. 
 “Obligations” shall mean (a) the due and punctual payment of
(i) the principal of and interest (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, when and as
due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and (ii) all other monetary obligations of the Borrower to any of the Secured Parties under the Second Lien Credit Agreement and each of the other
Loan Documents, including fees, costs, expenses and indemnities, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other
similar proceeding, regardless of whether allowed or allowable in such proceeding), (b) the due and punctual performance of all other obligations of the Borrower under or pursuant to the Second Lien Credit Agreement and each of the other Loan
Documents, and (c) the due and punctual payment and performance of all the obligations of each other Loan Party under or pursuant to this Agreement and each of the other Loan Documents. 
 “Patent License” shall mean any written agreement, now or hereafter in effect, granting to any third person any right to make,
use or sell any invention on which a patent, now or hereafter owned by any Grantor or that any Grantor otherwise has the right to license, is in existence, or granting to any Grantor any right to make, use or sell any invention on which a patent,
now or hereafter owned by any third person, is in existence, and all rights of any Grantor under any such agreement. 
 “Patents” shall mean all of the following now owned or hereafter acquired by any Grantor: (a) all letters patent of the United States or the equivalent thereof in any other country, all registrations and
recordings thereof, and all applications for letters patent of the United States or the equivalent thereof in any other country, including registrations, recordings and pending applications in the United States Patent and Trademark Office (or any
successor or any similar offices in any other country), including those listed on Schedule III, and (b) all reissues, continuations, divisions, continuations-in-part, renewals or extensions thereof, and the inventions disclosed or claimed
therein, including the right to make, use and/or sell the inventions disclosed or claimed therein. 
 “Perfection
Certificate” shall mean a certificate substantially in the form of Exhibit B, completed and supplemented with the schedules and attachments contemplated thereby, and duly executed by a Responsible Officer of the Borrower. 
 “Pledged Collateral” shall have the meaning assigned to such term in Section 3.01. 
  

 5 

 “Pledged Debt Securities” shall have the meaning assigned to such term
in Section 3.01. 
 “Pledged Securities” shall mean any promissory notes, stock certificates or other securities
now or hereafter included in the Pledged Collateral, including all certificates, instruments or other documents representing or evidencing any Pledged Collateral. 
 “Pledged Stock” shall have the meaning assigned to such term in Section 3.01. 
 “Second Lien Credit Agreement” shall have the meaning assigned to such term in the preliminary statement. 
 “Secured Parties” shall mean (a) the Lenders, (b) the Administrative Agent, (c) the Collateral Agent, (d) the beneficiaries of each indemnification obligation undertaken by any Loan Party under
any Loan Document and (e) the successors and assigns of each of the foregoing. 
 “Security Interest” shall have
the meaning assigned to such term in Section 4.01. 
 “Southern Assets” shall mean the assets identified on
Schedule 1.01(d) to the First Lien Credit Agreement. 
 “Subsidiary Guarantor” shall mean (a) the Subsidiaries
identified on Schedule I hereto as Subsidiary Guarantors and (b) each other Subsidiary that becomes a party to this Agreement as a Subsidiary Guarantor after the Closing Date. 
 “Trademark License” shall mean any written agreement, now or hereafter in effect, granting to any third person any right to use
any trademark now or hereafter owned by any Grantor or that any Grantor otherwise has the right to license, or granting to any Grantor any right to use any trademark now or hereafter owned by any third person, and all rights of any Grantor under any
such agreement. 
 “Trademarks” shall mean all of the following now owned or hereafter acquired by any Grantor:
(a) all trademarks, service marks, trade names, corporate names, company names, business names, fictitious business names, trade styles, trade dress, logos, other source or business identifiers, designs and general intangibles of like nature,
now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all registration and recording applications filed in connection therewith, including registrations and registration applications in the United States Patent
and Trademark Office (or any successor office) or any similar offices in any State of the United States or any other country or any political subdivision thereof, and all extensions or renewals thereof, including those listed on Schedule III,
(b) all goodwill associated therewith or symbolized thereby and (c) all other assets, rights and interests that uniquely reflect or embody such goodwill. 
  

 6 

 ARTICLE II 
 Guarantee 
 SECTION 2.01. Guarantee. Each Guarantor unconditionally guarantees,
jointly with the other Guarantors and severally, as a primary obligor and not merely as a surety, the due and punctual payment and performance of the Obligations. Each Guarantor further agrees that the Obligations may be extended or renewed, in
whole or in part, without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Obligation. Each Guarantor waives presentment to, demand of payment from and protest to
the Borrower or any other Loan Party of any Obligation, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment. 
 SECTION 2.02. Guarantee of Payment. Each Guarantor further agrees that its guarantee hereunder constitutes a guarantee of payment when due and not of collection, and waives any right to require that any resort be had by the
Collateral Agent or any other Secured Party to any security held for the payment of the Obligations or to any balance of any Deposit Account or credit on the books of the Collateral Agent or any other Secured Party in favor of the Borrower or any
other person. 
 SECTION 2.03. No Limitations, Etc. (a) Except for termination of a Guarantor’s obligations hereunder
as expressly provided in Section 7.15, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to any defense or setoff, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Obligations or otherwise. Without limiting the generality of the
foregoing, the obligations of each Guarantor hereunder shall not be discharged or impaired or otherwise affected by (i) the failure of the Collateral Agent or any other Secured Party to assert any claim or demand or to enforce any right or
remedy under the provisions of any Loan Document or otherwise, (ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to
any other Guarantor under this Agreement, (iii) the release of, or any impairment of or failure to perfect any Lien on or security interest in, any security held by the Collateral Agent or any other Secured Party for the Obligations or any of
them, (iv) any default, failure or delay, wilful or otherwise, in the performance of the Obligations, or (v) any other act or omission that may or might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as
a discharge of any Guarantor as a matter of law or equity (other than the indefeasible payment in full in cash of all the Obligations). Each Guarantor expressly authorizes the Collateral Agent to take and hold security for the payment and
performance of the Obligations, to exchange, waive or release any or all such security (with or without consideration), to enforce or apply such security and direct the order and manner of any sale thereof in its sole discretion or to release or
substitute any one or more other guarantors or obligors upon or in respect of the Obligations, all without affecting the obligations of any Guarantor hereunder. 
  

 7 

 (b) To the fullest extent permitted by applicable law, each Guarantor waives any defense based on or
arising out of any defense of the Borrower or any other Loan Party or the unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of the Borrower or any other Loan Party, other than
the indefeasible payment in full in cash of all the Obligations. Upon the occurrence and during the continuation of an Event of Default, the Collateral Agent and the other Secured Parties may, at their election, foreclose on any security held by one
or more of them by one or more judicial or nonjudicial sales, accept an assignment of any such security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any other accommodation with the Borrower or any other Loan Party
or exercise any other right or remedy available to them against the Borrower or any other Loan Party, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Obligations have been fully and
indefeasibly paid in full in cash. To the fullest extent permitted by applicable law, each Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any
right of reimbursement or subrogation or other right or remedy of such Guarantor against the Borrower or any other Loan Party, as the case may be, or any security. 
 SECTION 2.04. Reinstatement. Each Guarantor agrees that its guarantee hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any
Obligation is rescinded or must otherwise be restored by the Collateral Agent or any other Secured Party upon the bankruptcy or reorganization of the Borrower, any other Loan Party or otherwise pursuant to applicable law. 
 SECTION 2.05. Agreement To Pay; Subrogation. In furtherance of the foregoing and not in limitation of any other right that the Collateral
Agent or any other Secured Party has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any other Loan Party to pay any Obligation when and as the same shall become due, whether at maturity, by
acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Collateral Agent for distribution to the applicable Secured Parties in cash the amount of such unpaid
Obligation. Upon payment by any Guarantor of any sums to the Collateral Agent as provided above, all rights of such Guarantor against the Borrower or any other Guarantor arising as a result thereof by way of right of subrogation, contribution,
reimbursement, indemnity or otherwise shall in all respects be subject to Article VI. 
 SECTION 2.06. Information. Each
Guarantor assumes all responsibility for being and keeping itself informed of the Borrower’s and each other Loan Party’s financial condition and assets and of all other circumstances bearing upon the risk of nonpayment of the Obligations
and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that neither the Collateral Agent nor any other Secured Party will have any duty to advise such Guarantor of information known to it or any of
them regarding such circumstances or risks. 
  

 8 

 ARTICLE III 
 Pledge of Securities 
 SECTION 3.01. Pledge. As security for the payment or
performance, as the case may be, in full of the Obligations, each Grantor hereby assigns and pledges to the Collateral Agent, its successors and assigns, for the ratable benefit of the Secured Parties, and hereby grants to the Collateral Agent, its
successors and assigns, for the ratable benefit of the Secured Parties, a security interest in, all of such Grantor’s right, title and interest in, to and under: 
 (a) (i) the Equity Interests owned by such Grantor on the date hereof (including all such Equity Interests listed on
Schedule II), (ii) any other Equity Interests obtained in the future by such Grantor and (iii) the certificates representing all such Equity Interests, if any (all the foregoing collectively referred to herein as the
“Pledged Stock”); 
 (b) (i) the debt securities held by such Grantor on the date hereof
(including all such debt securities listed opposite the name of such Grantor on Schedule II), (ii) any debt securities in the future issued to such Grantor and (iii) the promissory notes and any other instruments evidencing such debt
securities (all the foregoing collectively referred to herein as the “Pledged Debt Securities”); 
 (c) subject to Section 3.06, all payments of principal or interest, dividends, cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of, in exchange for or upon the conversion
of, and all other Proceeds received in respect of, the securities referred to in clauses (a) and (b) above; 
 (d)
subject to Section 3.06, all rights and privileges of such Grantor with respect to the securities and other property referred to in clauses (a), (b), and (c) above; and 
 (e) all Proceeds of any of the foregoing (the items referred to in clauses (a) through (e) above being collectively referred to
as the “Pledged Collateral”); 
 provided, however, that notwithstanding any of the other provisions set
forth in this Section 2, in no event shall the security interest granted under this Section 2 attach to any Excluded Collateral. 
 TO HAVE AND TO HOLD the Pledged Collateral, together with all right, title, interest, powers, privileges and preferences pertaining or incidental thereto, unto the Collateral Agent, its successors and assigns, for the ratable benefit of the
Secured Parties, as long as the Obligations remain outstanding; subject, however, to the terms, covenants and conditions hereinafter set forth. 
  

 9 

 SECTION 3.02. Delivery of the Pledged Collateral. (a) Each Grantor agrees promptly to
deliver or cause to be delivered to the Collateral Agent (or, prior to the Discharge of First Lien Obligations, to the First Lien Collateral Agent, acting as a gratuitous bailee of the Collateral Agent) any and all certificates, instruments or other
documents representing or evidencing Pledged Securities issued by a Subsidiary and Pledged Securities having an individual value in excess of $250,000. 
 (b) Each Grantor agrees promptly to deliver or cause to be delivered to the Collateral Agent (or, prior to the Discharge of First Lien Obligations, to the First Lien Collateral Agent, acting as a gratuitous bailee of
the Collateral Agent) any and all Pledged Debt Securities issued by a Subsidiary and Pledged Debt Securities having an individual value in excess of $250,000. 
 (c) Upon delivery to the Collateral Agent (or, prior to the Discharge of First Lien Obligations, to the First Lien Collateral Agent, acting as a gratuitous bailee of the Collateral Agent), (i) any certificate,
instrument or document representing or evidencing Pledged Securities shall be accompanied by undated stock powers duly executed in blank or other undated instruments of transfer reasonably satisfactory to the Collateral Agent and duly executed in
blank and by such other instruments and documents as the Collateral Agent may reasonably request and (ii) all other property comprising part of the Pledged Collateral shall be accompanied by proper instruments of assignment duly executed by the
applicable Grantor. Each delivery of Pledged Securities shall be accompanied by a schedule describing the applicable securities, which schedule shall be attached hereto as Schedule II and made a part hereof; provided that failure to
attach any such schedule hereto shall not affect the validity of the pledge of such Pledged Securities. Each schedule so delivered shall supplement any prior schedules so delivered. 
 (d) In accordance with the terms of the Intercreditor Agreement, all Pledged Collateral delivered to the First Lien Collateral Agent shall be held by the
First Lien Collateral Agent as gratuitous bailee for the Secured Parties (as defined in the Intercreditor Agreement) solely for the purpose of perfecting the security interest therein granted under this Agreement. 
 SECTION 3.03. Representations, Warranties and Covenants. The Grantors jointly and severally represent, warrant and covenant to and with the
Collateral Agent, for the benefit of the Secured Parties, that: 
 (a) As of the Closing Date, Schedule II correctly sets
forth the percentage of the issued and outstanding shares of each class of the Equity Interests of the issuer thereof represented by such Pledged Stock and includes all Equity Interests, debt securities and promissory notes required to be delivered
hereunder; 
 (b) the Pledged Stock and Pledged Debt Securities in each case issued by any Subsidiary have been duly and
validly authorized and issued by the issuers thereof and (i) in the case of Pledged Stock, are fully paid and nonassessable and (ii) in the case of Pledged Debt Securities, are legal, valid and binding obligations of the issuers thereof;

  

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 (c) except for the security interests granted hereunder and under the First Lien
Guarantee and Collateral Agreement (or otherwise permitted under the Second Lien Credit Agreement), each Grantor (i) is and, subject to any transfers made in compliance with the Second Lien Credit Agreement, will continue to be the direct
owner, beneficially and of record, of the Pledged Securities indicated on Schedule II as owned by such Grantor, (ii) holds the same free and clear of all Liens except for Liens permitted pursuant to Section 6.02 of the Second Lien Credit
Agreement, (iii) will make no assignment, pledge, hypothecation or transfer of, or create or permit to exist any security interest in or other Lien on, the Pledged Collateral required to be delivered hereunder, other than transfers made in
compliance with the First Lien Credit Agreement (until Discharge of First Lien Obligations) and the Second Lien Credit Agreement, and (iv) subject to Section 3.06, will cause any and all Pledged Collateral required to be delivered
hereunder, whether for value paid by such Grantor or otherwise, to be forthwith deposited with the Collateral Agent and pledged or assigned hereunder; 
 (d) except for restrictions and limitations imposed by the Loan Documents, the First Lien Loan Documents or securities laws or other applicable laws generally, the Pledged Collateral is and will continue to be freely
transferable and assignable, and none of the Pledged Collateral required to be pledged hereunder is or will be subject to any option, right of first refusal, shareholders agreement, charter or by-law provisions or contractual restriction of any
nature that might prohibit, impair, delay or otherwise affect the pledge of such Pledged Collateral required to be pledged hereunder, the sale or disposition thereof pursuant hereto or the exercise by the Collateral Agent of rights and remedies
hereunder; 
 (e) each Grantor (i) has the power and authority to pledge the Pledged Collateral pledged by it hereunder
in the manner hereby done or contemplated and (ii) will defend its title or interest thereto or therein against any and all Liens (other than any Lien created or permitted by the Loan Documents or the First Lien Loan Documents), however
arising, of all persons whomsoever; 
 (f) no consent or approval of any Governmental Authority, any securities exchange or
any other person was or is necessary to the validity of the pledge effected hereby (other than such as have been obtained and are in full force and effect); 
 (g) by virtue of the execution and delivery by each Grantor of this Agreement and the Lien priorities set forth in the Intercreditor
Agreement, when any Pledged Securities are delivered to the Collateral Agent (or, prior to the Discharge of First Lien Obligations, to the First Lien Collateral Agent, acting as a gratuitous bailee of the Collateral Agent) in accordance with this
Agreement, the Collateral Agent will obtain a legal, valid and perfected first priority lien upon 

  

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and security interest in such Pledged Securities as security for the payment and performance of the Obligations, prior to any other Lien on any of the
Pledged Securities other than the First Priority Liens and Liens permitted pursuant to Section 6.02 of the Second Lien Credit Agreement; and 
 (h) the pledge effected hereby is effective to vest in the Collateral Agent, for the ratable benefit of the Secured Parties, the rights of the Collateral Agent in the Pledged Collateral as set forth herein and all
action by any Grantor necessary to protect and perfect the Lien on the Pledged Collateral has been duly taken. 
 SECTION 3.04.
Certification of Limited Liability Company Interests and Limited Partnership Interests. Each interest in any limited liability company or limited partnership which is a Subsidiary and pledged hereunder shall be represented by a
certificate, shall be a “security” within the meaning of Article 8 of the New York UCC and shall be governed by Article 8 of the New York UCC. 
 SECTION 3.05. Registration in Nominee Name; Denominations. Upon the occurrence and during the continuation of an Event of Default, the Collateral Agent, on behalf of the Secured Parties, shall have the
right (in its sole and absolute discretion), at any time after the Discharge of First Lien Obligations, to hold the Pledged Securities in its own name as pledgee, the name of its nominee (as pledgee or as sub-agent) or the name of the applicable
Grantor, endorsed or assigned in blank or in favor of the Collateral Agent. Upon the occurrence and during the continuation of an Event of Default, each Grantor will promptly give to the Collateral Agent copies of any notices or other communications
received by it with respect to Pledged Securities in its capacity as the registered owner thereof. Upon the occurrence and during the continuation of an Event of Default, at any time after the Discharge of First Lien Obligations, the Collateral
Agent shall have the right to exchange the certificates representing Pledged Securities for certificates of smaller or larger denominations for any purpose consistent with this Agreement. 
 SECTION 3.06. Voting Rights; Dividends and Interest, Etc. (a) Unless and until an Event of Default shall have occurred and be
continuing and the Collateral Agent shall have given the Grantors written notice of its intent to exercise its rights under this Agreement (which notice shall be deemed to have been given immediately upon the occurrence of an Event of Default under
paragraph (g) or (h) of Article VII of the Second Lien Credit Agreement): 
 (i) Each Grantor shall be entitled to
exercise any and all voting and/or other consensual rights and powers inuring to an owner of Pledged Securities or any part thereof for any purpose consistent with the terms of this Agreement, the Second Lien Credit Agreement and the other Loan
Documents; provided, however, that such rights and powers shall not be exercised in any manner that could reasonably be expected to have a Material Adverse Effect. 
  

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 (ii) The Collateral Agent shall execute and deliver to each Grantor, or cause to be
executed and delivered to each Grantor, all such proxies, powers of attorney and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and/or consensual rights and powers it is
entitled to exercise pursuant to paragraph (i) above. 
 (iii) Each Grantor shall be entitled to receive and retain any
and all dividends, interest, principal and other distributions paid on or distributed in respect of the Pledged Securities to the extent and only to the extent that such dividends, interest, principal and other distributions are permitted by, and
otherwise paid or distributed in accordance with, the terms and conditions of the Second Lien Credit Agreement, the other Loan Documents and applicable law; provided, however, that any noncash dividends, interest, principal or other
distributions that would constitute Pledged Stock or Pledged Debt Securities, whether resulting from a subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of any Pledged Securities or received in exchange
for Pledged Securities or any part thereof, or in redemption thereof, or as a result of any merger, consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be and become part of the Pledged
Collateral, and, to the extent required to be delivered hereunder, if received by any Grantor, shall not be commingled by such Grantor with any of its other funds or property but shall be held separate and apart therefrom, shall be held in trust for
the ratable benefit of the Secured Parties and shall be forthwith delivered to the Collateral Agent (or, prior to the Discharge of First Lien Obligations, to the First Lien Collateral Agent, acting as gratuitous bailee of the Collateral Agent) in
the same form as so received (with any necessary endorsement or instrument of assignment). This paragraph (iii) shall not apply to dividends between or among the Borrower, the Guarantors and any Subsidiaries only of property subject to a
perfected security interest under this Agreement. 
 (b) Upon the occurrence and during the continuance of an Event of Default, after the
Collateral Agent shall have notified (or shall be deemed to have notified pursuant to Section 3.06(a)) the Grantors in writing of the suspension of their rights under paragraph (a)(iii) of this Section 3.06, then all rights of any Grantor
to dividends, interest, principal or other distributions that such Grantor is authorized to receive pursuant to paragraph (a)(iii) of this Section 3.06 shall cease, and all such rights shall thereupon become vested in the Collateral Agent,
which, subject to the rights of the First Lien Collateral Agent under the Intercreditor Agreement, shall have the sole and exclusive right and authority to receive and retain such dividends, interest, principal or other distributions. All dividends,
interest, principal or other distributions received by any Grantor contrary to the provisions of this Section 3.06 shall be held in trust for the benefit of the Collateral Agent, shall be segregated from other property or funds of such Grantor
and, subject to the rights of the First Lien Collateral Agent and the obligations of the Grantors under the First Lien Loan Documents and the Intercreditor Agreement, shall be 

  

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forthwith delivered to the Collateral Agent upon demand in the same form as so received (with any necessary endorsement or instrument of assignment). Any and
all money and other property paid over to or received by the Collateral Agent pursuant to the provisions of this paragraph (b) shall be retained by the Collateral Agent in an account to be established by the Collateral Agent upon receipt of
such money or other property and shall be applied in accordance with the provisions of Section 5.02. The Collateral Agent shall, promptly after all such Events of Default have been cured or waived, repay to each applicable Grantor (without
interest) all dividends, interest, principal or other distributions that such Grantor would otherwise be permitted to retain pursuant to the terms of paragraph (a)(iii) of this Section 3.06 and that remain in such account. 
 (c) Upon the occurrence and during the continuance of an Event of Default, after the Collateral Agent shall have notified (or shall be deemed to have
notified pursuant to Section 3.06(a)) the Grantors in writing of the suspension of their rights under paragraph (a)(i) of this Section 3.06, then all rights of any Grantor to exercise the voting and consensual rights and powers it is
entitled to exercise pursuant to paragraph (a)(i) of this Section 3.06, and the obligations of the Collateral Agent under paragraph (a)(ii) of this Section 3.06, shall cease, and all such rights shall thereupon become, subject to
the rights of the First Lien Collateral Agent and the obligations of the Grantors under the First Lien Loan Documents and the Intercreditor Agreement, vested in the Collateral Agent, which shall have the sole and exclusive right and authority to
exercise such voting and consensual rights and powers; provided that, unless otherwise directed by the Required Lenders, the Collateral Agent shall have the right from time to time following and during the continuance of an Event of Default
to permit the Grantors to exercise such rights. 
 (d) Any notice given by the Collateral Agent to the Grantors exercising its rights under
paragraph (a) of this Section 3.06 (i) may be given by telephone if promptly confirmed in writing, (ii) may be given to one or more of the Grantors at the same or different times and (iii) may suspend the rights of the
Grantors under paragraph (a)(i) or paragraph (a)(iii) in part without suspending all such rights (as specified by the Collateral Agent in its sole and absolute discretion) and without waiving or otherwise affecting the Collateral Agent’s rights
to give additional notices from time to time suspending other rights so long as an Event of Default has occurred and is continuing. 
 ARTICLE
IV 
 Security Interests in Personal Property 
 SECTION 4.01. Security Interest. (a) As security for the payment or performance, as the case may be, in full of the Obligations, each Grantor hereby assigns and pledges to the Collateral Agent, its
successors and assigns, for the ratable benefit of the Secured Parties, and hereby grants to the Collateral Agent, its successors and assigns, for the ratable benefit of the Secured Parties, a security interest (the “Security
Interest”), in all right, title or interest in or to any and all of the following assets and properties now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may
acquire any right, title or interest (collectively, the “Article 9 Collateral”): 
 (i) all
Accounts; 
  

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 (ii) all Chattel Paper; 
 (iii) all cash and Deposit Accounts; 
 (iv) all Documents; 
 (v) all Equipment; 
 (vi) all General Intangibles; 
 (vii) all Instruments; 
 (viii) all Inventory; 
 (ix) all Investment Property; 
 (x) all Letter-of-Credit Rights; 
 (xi) all Commercial Tort Claims; 
 (xii) all books and records pertaining to the Article 9 Collateral; and 
 (xiii) to the extent not otherwise included, all Proceeds and products of any and all of the foregoing and all collateral security and
guarantees given by any person with respect to any of the foregoing; 
 provided, however, that notwithstanding any of the other
provisions set forth in this Section 4, in no event shall the security interest granted under this Section 4 attach to any Excluded Collateral. 
 (b) Each Grantor hereby irrevocably authorizes the Collateral Agent at any time and from time to time to file in any relevant jurisdiction any initial financing statements (including fixture filings) with respect to
the Article 9 Collateral or any part thereof and amendments thereto that (i) indicate the Article 9 Collateral as “all assets” of such Grantor or words of similar effect, and (ii) contain the information required by Article 9 of
the Uniform Commercial Code of each applicable jurisdiction for the filing of any financing statement or amendment, including (A) whether such Grantor is an organization, the type of organization and any organizational identification number
issued to such Grantor and (B) in the case of a financing statement filed as a fixture filing, a sufficient description of the real property to which such Article 9 Collateral relates. Each Grantor agrees to provide such information to the
Collateral Agent promptly upon request. 
  

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 The Collateral Agent is further authorized to file with the United States Patent and Trademark Office or
United States Copyright Office (or any successor office or any similar office in any other country) such documents as may be necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security Interest
granted by each Grantor, without the signature of any Grantor, and naming any Grantor or the Grantors as debtors and the Collateral Agent as secured party. 
 (c) The Security Interest is granted as security only and shall not subject the Collateral Agent or any other Secured Party to, or in any way alter or modify, any obligation or liability of any Grantor with respect to
or arising out of the Article 9 Collateral. 
 SECTION 4.02. Representations and Warranties. The Grantors jointly and
severally represent and warrant to the Collateral Agent and the Secured Parties that: 
 (a) Except for the security interests
granted hereunder and the Liens permitted pursuant to Section 6.02 of the Second Lien Credit Agreement, each Grantor has good and valid rights in and title to the Article 9 Collateral with respect to which it has purported to grant a
Security Interest hereunder and has full power and authority to grant to the Collateral Agent, for the ratable benefit of the Secured Parties, the Security Interest in such Article 9 Collateral pursuant hereto and to execute, deliver and
perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other person other than any consent or approval that has been obtained. 
 (b) The Perfection Certificate has been duly prepared, completed and executed and the information set forth therein (including
(x) the exact legal name of each Grantor and (y) the jurisdiction of organization of each Grantor) is correct and complete in all material respects as of the Closing Date. Uniform Commercial Code financing statements (including fixture
filings, as applicable) or other appropriate filings, recordings or registrations containing a description of the Article 9 Collateral have been prepared by the Collateral Agent based upon the information provided to the Administrative Agent
and the Secured Parties in the Perfection Certificate for filing in each governmental, municipal or other office specified in Section 2 of the Perfection Certificate (or specified by notice from the Borrower to the Administrative Agent after
the Closing Date in the case of filings, recordings or registrations required by Sections 5.06 or 5.12 of the Second Lien Credit Agreement). 
 (c) The Article 9 Collateral is owned by the Grantors free and clear of any Lien, except for Liens expressly permitted pursuant to Section 6.02 of the Second Lien Credit Agreement. No Grantor has filed or
consented to the filing of (i) any financing statement or analogous document under the Uniform Commercial Code or any other applicable laws covering any Article 9 Collateral, (ii) any assignment in which any Grantor assigns any
Collateral or any security agreement or similar instrument covering any Article 9 Collateral with the United States Patent and Trademark Office or the United States Copyright Office, (iii)

  

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any notice under the Assignment of Claims Act, or (iv) any assignment in which any Grantor assigns any Article 9 Collateral or any security
agreement or similar instrument covering any Article 9 Collateral with any foreign governmental, municipal or other office, which financing statement or analogous document, assignment, security agreement or similar instrument is still in
effect, except, in each case, for Liens expressly permitted pursuant to Section 6.02 of the Second Lien Credit Agreement. As of the Closing Date, no Grantor holds any Commercial Tort Claims except as indicated on the Perfection Certificate.

 SECTION 4.03. Covenants. (a) Except in connection with a transaction permitted by Section 6.05 of the First Lien
Credit Agreement following which any Grantor shall cease to be a Loan Party, each Grantor agrees promptly to notify the Collateral Agent in writing of any change in (i) its legal name, (ii) its identity or type of organization or corporate
structure, (iii) its Federal Taxpayer Identification Number or organizational identification number or (iv) its jurisdiction of organization. Each Grantor agrees promptly to provide the Collateral Agent with certified organizational
documents reflecting any of the changes described in the first sentence of this paragraph. Each Grantor agrees not to effect or permit any change referred to in the preceding sentence unless all filings have been made under the Uniform Commercial
Code or otherwise that are required in order for the Collateral Agent to continue at all times following such change to have a valid, legal and perfected first priority security interest in all the Article 9 Collateral contemplated hereunder.
Each Grantor agrees promptly to notify the Collateral Agent if any material portion of the Article 9 Collateral owned or held by such Grantor is damaged or destroyed. 
 (b) Each Grantor agrees to maintain, at its own cost and expense, such complete and accurate records with respect to the Article 9 Collateral owned
by it as is consistent with its current practices and in accordance with such prudent and standard practices used in industries that are the same as or similar to those in which such Grantor is engaged. 
 (c) Each year, at the time of delivery of annual financial statements with respect to the preceding fiscal year pursuant to Section 5.04(a) of the
Second Lien Credit Agreement, the Borrower shall deliver to the Collateral Agent a certificate executed by a Responsible Officer of the Borrower and setting forth in the format of Schedule III a list of all Intellectual Property of any Grantor
in existence on the date thereof and not then listed on such Schedules or previously so identified to the Collateral Agent. 
 (d) Each
Grantor shall, at its own expense, take any and all actions reasonably necessary to defend title to the Article 9 Collateral against all persons and to defend the Security Interest of the Collateral Agent in the Article 9 Collateral and
the priority thereof against any Lien not expressly permitted pursuant to Section 6.02 of the Second Lien Credit Agreement. 
 (e) Each
Grantor agrees, at its own expense, promptly to execute, acknowledge, deliver and cause to be duly filed all such further instruments and documents and take all such actions as the Collateral Agent may from time to time 

  

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reasonably request to better assure, obtain, preserve, protect and perfect the Security Interest and the rights and remedies created hereby, including the
payment of any fees and Taxes required in connection with the execution and delivery of this Agreement, the granting of the Security Interest and the filing of any financing or continuation statements (including fixture filings) or other documents
in connection herewith or therewith. 
 Without limiting the generality of the foregoing, each Grantor hereby authorizes the Collateral
Agent, with reasonable prior notice thereof to the Grantors, to supplement this Agreement by supplementing Schedule III or adding additional schedules hereto to identify specifically any asset or item of a Grantor that, in the Collateral
Agent’s reasonable judgment, constitutes Copyrights, Licenses, Patents or Trademarks; provided that any Grantor shall have the right, exercisable within 10 days after it has been notified by the Collateral Agent of the specific
identification of such Collateral, to advise the Collateral Agent in writing of any inaccuracy of the representations and warranties made by such Grantor hereunder with respect to such Collateral. Each Grantor agrees that it will use its reasonable
best efforts to take such action as shall be reasonably necessary in order that all representations and warranties hereunder shall be true and correct with respect to such Collateral within 30 days after the date it has been notified by the
Collateral Agent of the specific identification of such Collateral. 
 (f) The Collateral Agent and such persons as the Collateral Agent may
designate shall have the right (subject to and otherwise in accordance with Section 5.07 of the Second Lien Credit Agreement), at the applicable Grantor’s own cost and expense, to inspect the Article 9 Collateral, all records related
thereto (and to make extracts and copies from such records) and the premises upon which any of the Article 9 Collateral is located, to discuss the applicable Grantor’s affairs with the officers of such Grantor and its independent
accountants and to verify the existence, validity, amount, quality, quantity, value, condition and status of, or any other matter relating to, the Article 9 Collateral, including, in the case of Accounts or other Article 9 Collateral in the
possession of any third person, by contacting Account Debtors or the third person possessing such Article 9 Collateral for the purpose of making such a verification. The Collateral Agent upon written notice to each Grantor shall have the
absolute right to share any information it gains from such inspection or verification with any Secured Party. 
 (g) At its option, during
the continuance of an Event of Default, the Collateral Agent may discharge past due Taxes, assessments, charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the Article 9 Collateral and not expressly
permitted pursuant to Section 5.03 or Section 6.02 of the Second Lien Credit Agreement, and may pay for the maintenance and preservation of the Article 9 Collateral to the extent any Grantor fails to do so as required by the Second
Lien Credit Agreement or this Agreement, and each Grantor jointly and severally agrees to reimburse the Collateral Agent promptly following demand for any payment made or any expense incurred by the Collateral Agent pursuant to the foregoing
authorization; provided, however, that nothing in this paragraph shall be interpreted as excusing any Grantor from the performance of, or imposing any obligation on the Collateral Agent or any Secured Party to cure or perform, any
covenants or other promises of any Grantor with respect to Taxes, assessments, charges, fees, Liens, security interests or other encumbrances and maintenance as set forth herein or in the other Loan Documents. 
  

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 (h) If at any time any Grantor shall take a security interest in any material property of an Account
Debtor or any other person to secure payment and performance of a material Account, such Grantor shall promptly assign such security interest to the Collateral Agent for the ratable benefit of the Secured Parties. Such assignment need not be filed
of public record unless necessary to continue the perfected status of the security interest against creditors of and transferees from the Account Debtor or other person granting the security interest. 
 (i) Each Grantor, at its own expense, shall maintain or cause to be maintained insurance covering physical loss or damage to the Inventory and Equipment
in accordance with the requirements set forth in Section 5.02 of the Second Lien Credit Agreement. Each Grantor irrevocably makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents designated by the Collateral
Agent) as such Grantor’s true and lawful agent (and attorney-in-fact) for the purpose, upon the occurrence and during the continuance of an Event of Default, of making, settling and adjusting claims in respect of Article 9 Collateral under
policies of insurance, endorsing the name of such Grantor on any check, draft, instrument or other item of payment for the proceeds of such policies of insurance and for making all determinations and decisions with respect thereto. Upon the
occurrence and during the continuance of an Event of Default, in the event that any Grantor at any time or times shall fail to obtain or maintain any of the policies of insurance required hereby or under the Second Lien Credit Agreement or to pay
any premium in whole or part relating thereto, the Collateral Agent may, without waiving or releasing any obligation or liability of any Grantor hereunder or any Default or Event of Default, in its sole discretion, obtain and maintain such policies
of insurance and pay such premium and take any other reasonable actions with respect thereto as the Collateral Agent deems advisable. All sums disbursed by the Collateral Agent in connection with this paragraph, including attorneys’ fees, court
costs, expenses and other charges relating thereto, shall be payable, by the Grantors to the Collateral Agent and shall be additional Obligations secured hereby. 
 (j) Each Grantor shall maintain, in form and manner reasonably satisfactory to the Collateral Agent, records of its Chattel Paper and its books, records and documents evidencing or pertaining thereto. 
 SECTION 4.04. Other Actions. In order to further insure the attachment, perfection and priority of, and the ability of the Collateral Agent
to enforce, the Security Interest in the Article 9 Collateral, each Grantor agrees, in each case at such Grantor’s own expense, to take the following actions with respect to the following Article 9 Collateral: 
 (a) Instruments. If any Grantor shall at any time hold or acquire any Instruments having an individual value in excess of
$250,000, such Grantor shall forthwith endorse, assign and deliver the same to the Collateral Agent or, prior to the Discharge of First Lien Obligations, to the First Lien Collateral Agent, as 

  

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gratuitous bailee, accompanied by such undated instruments of endorsement, transfer or assignment duly executed in blank as the Collateral Agent may from
time to time specify. 
 (b) Deposit Accounts. For each Deposit Account that any Grantor at any time opens or
maintains, such Grantor shall, upon the Collateral Agent’s written request, either (i) cause the depositary bank to agree to comply at any time with instructions from the Collateral Agent or, prior to the Discharge of First Lien
Obligations, the First Lien Collateral Agent, as gratuitous bailee, to such depositary bank directing the disposition of funds from time to time credited to such Deposit Account, without further consent of such Grantor or any other person, pursuant
to an agreement in form and substance reasonably satisfactory to the Collateral Agent, or (ii) arrange for the Collateral Agent or, prior to the Discharge of First Lien Obligations, the First Lien Collateral Agent, as gratuitous bailee to
become the customer of the depositary bank with respect to the Deposit Account, with the Grantor being permitted, only with the consent of the Collateral Agent (or the First Lien Collateral Agent, as the case may be), to exercise rights to withdraw
funds from such Deposit Account. The Collateral Agent agrees with each Grantor that the Collateral Agent shall not give any such instructions or withhold any withdrawal rights from any Grantor, unless an Event of Default has occurred and is
continuing. The provisions of this paragraph shall not apply to any Deposit Account (x) for which any Grantor, the depositary bank and the Collateral Agent or, prior to the Discharge of First Lien Obligations, the First Lien Collateral Agent,
as gratuitous bailee have entered into a cash collateral agreement specially negotiated among such Grantor, the depositary bank and the Collateral Agent (or the First Lien Collateral Agent, as the case may be) for the specific purpose set forth
therein, (y) any payroll, withholding tax or other fiduciary account and/or (z) any such Deposit Accounts that, together with any Securities Accounts described in Section 4.04(c)(z) below, in the aggregate, have a principal balance of
$250,000 or less. 
 (c) Investment Property. Except to the extent otherwise provided in Article III, if
any Grantor shall at any time hold or acquire any certificated securities having an individual value in excess of $250,000 (or otherwise required to be delivered hereunder), such Grantor shall forthwith endorse, assign and deliver the same to the
Collateral Agent or, prior to the Discharge of First Lien Obligations, to the First Lien Collateral Agent, as gratuitous bailee, accompanied by such undated instruments of transfer or assignment duly executed in blank as the Collateral Agent may
from time to time specify. If any such securities now or hereafter acquired by any Grantor are uncertificated and are issued to such Grantor or its nominee directly by the issuer thereof, such Grantor shall promptly notify the Collateral Agent
thereof and, at the Collateral Agent’s written request and option, pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, either (i) cause the issuer to agree to comply with instructions from the
Collateral Agent (or, prior to the Discharge of First Lien Obligations, the First Lien Collateral Agent) as to such securities, without further consent of any Grantor or such nominee, or (ii) arrange for the Collateral 

  

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Agent (or, prior to the Discharge of First Lien Obligations, the First Lien Collateral Agent) to become the registered owner of the securities. If any
securities, whether certificated or uncertificated, or other Investment Property now or hereafter acquired by any Grantor are held by such Grantor or its nominee through a Securities Intermediary or Commodity Intermediary, such Grantor shall
promptly notify the Collateral Agent thereof and, at the Collateral Agent’s request and option, pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, either (i) cause such Securities Intermediary
or Commodity Intermediary, as the case may be, to agree to comply with Entitlement Orders from the Collateral Agent (or, prior to the Discharge of First Lien Obligations, the First Lien Collateral Agent) to such Securities Intermediary as to such
securities or other Investment Property, or (as the case may be) to apply any value distributed on account of any commodity contract as directed by the Collateral Agent (or, prior to the Discharge of First Lien Obligations, the First Lien Collateral
Agent) to such Commodity Intermediary, in each case without further consent of any Grantor or such nominee, or (ii) in the case of Financial Assets (as governed by Article 8 of the New York UCC) or other Investment Property held through a
Securities Intermediary, arrange for the Collateral Agent (or, prior to the Discharge of First Lien Obligations, the First Lien Collateral Agent) to become the Entitlement Holder with respect to such Investment Property, with the Grantor being
permitted, only with the consent of the Collateral Agent (or, prior to the Discharge of First Lien Obligations, the First Lien Collateral Agent), to exercise rights to withdraw or otherwise deal with such Investment Property. The Collateral Agent
agrees with each Grantor that the Collateral Agent shall not give any such Entitlement Orders or instructions or directions to any such issuer, Securities Intermediary or Commodity Intermediary, and shall not withhold its consent to the exercise of
any withdrawal or dealing rights by any Grantor, unless an Event of Default has occurred and is continuing. The provisions of this paragraph shall not apply to any (x) Financial Assets credited to a Securities Account for which the Collateral
Agent (or, prior to the Discharge of First Lien Obligations, the First Lien Collateral Agent) is the Securities Intermediary, (y) any payroll, withholding tax or other fiduciary account and/or (z) any Securities Accounts that, together
with any Deposit Accounts described in Section 4.04(b)(z) above, in the aggregate, have a principal balance of $250,000 or less. 
 (d) Electronic Chattel Paper and Transferable Records. If any Grantor at any time holds or acquires an interest in any Electronic Chattel Paper or any “transferable record”, as that term
is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, in each case having an individual
value in excess of $250,000, such Grantor shall promptly notify the Collateral Agent thereof and, at the written request of the Collateral Agent, shall take such action as the Collateral Agent may reasonably request to vest in the Collateral Agent
(or, prior to the Discharge of First Lien Obligations, to the First Lien Collateral Agent, acting as gratuitous bailee of the Collateral Agent) control under New York UCC Section 9-105 of such Electronic 

  

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Chattel Paper or control under Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or, as the case may be,
Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record. The Collateral Agent agrees with such Grantor that the Collateral Agent will arrange, pursuant to procedures reasonably
satisfactory to the Collateral Agent and so long as such procedures will not result in the Collateral Agent’s (or, prior to the Discharge of First Lien Obligations, to the First Lien Collateral Agent’s, acting as gratuitous bailee of the
Collateral Agent) loss of control, for the Grantor to make alterations to such Electronic Chattel Paper or transferable record permitted under UCC Section 9-105 or, as the case may be, Section 201 of the Federal Electronic Signatures in
Global and National Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in control to allow without loss of control, unless an Event of Default has occurred and is continuing. 
 (e) Letter-of-Credit Rights. If any Grantor is at any time a beneficiary under a letter of credit having an individual value
in excess of $250,000 now or hereafter issued in favor of such Grantor, such Grantor shall promptly notify the Collateral Agent thereof and, at the request and option of the Collateral Agent, and, subject to the rights of the First Lien Collateral
Agent and the obligations of the Grantors under the First Lien Loan Documents and the Intercreditor Agreement, such Grantor shall, pursuant to an agreement in form and substance reasonably satisfactory to the Collateral Agent, either
(i) arrange for the issuer and any confirmer of such letter of credit to consent to an assignment to the Collateral Agent (or, prior to the Discharge of First Lien Obligations, the First Lien Collateral Agent) of the proceeds of any drawing
under the letter of credit or (ii) arrange for the Collateral Agent (or, prior to the Discharge of First Lien Obligations, the First Lien Collateral Agent) to become the transferee beneficiary of the letter of credit, with the Collateral Agent
agreeing, in each case, that the proceeds of any drawing under the letter of credit are to be paid to the applicable Grantor unless an Event of Default has occurred and is continuing. 
 (f) Commercial Tort Claims. If any Grantor shall at any time hold or acquire a Commercial Tort Claim in an amount reasonably
estimated to exceed $500,000, the Grantor shall promptly notify the Collateral Agent thereof in a writing signed by such Grantor including a summary description of such claim and grant to the Collateral Agent, for the ratable benefit of the Secured
Parties, in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to the Collateral Agent. 
 SECTION 4.05. Covenants Regarding Patent, Trademark and Copyright Collateral. (a) Each Grantor agrees that it will not, and will not
permit any of its licensees to, do any act, or omit to do any act, whereby any Patent that is material to the conduct of such Grantor’s business may become invalidated or dedicated to the public, and agrees that it shall continue to mark any
products covered by any such Patent with the relevant patent number as necessary and sufficient to establish and preserve its maximum rights under applicable patent laws. 
  

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 (b) Each Grantor (either itself or through its licensees or its sublicensees) will, for each Trademark
material to the conduct of such Grantor’s business, (i) maintain such Trademark in full force free from any claim of abandonment or invalidity for non-use, (ii) maintain the quality of products and services offered under such
Trademark, (iii) display such Trademark with notice of Federal or foreign registration to the extent necessary and sufficient to establish and preserve its maximum rights under applicable law and (iv) not knowingly use or knowingly permit
the use of such Trademark in violation of any third party rights. 
 (c) Each Grantor (either itself or through its licensees or
sublicensees) will, for each work covered by a material Copyright, continue to publish, reproduce, display, adopt and distribute the work with appropriate copyright notice as necessary and sufficient to establish and preserve its maximum rights
under applicable copyright laws. 
 (d) Each Grantor shall notify the Collateral Agent promptly if it knows or has reason to know that any
Patent, Trademark or Copyright material to the conduct of its business may become abandoned, lost or dedicated to the public, or of any adverse determination or development (including the institution of, or any such determination or development in,
any proceeding in the United States Patent and Trademark Office, United States Copyright Office or any court or similar office of any country) regarding such Grantor’s ownership of any Patent, Trademark or Copyright, its right to register the
same, or its right to keep and maintain the same. 
 (e) In no event shall any Grantor, either itself or through any agent, employee,
licensee or designee, file an application for any Patent, Trademark or Copyright (or for the registration of any Trademark or Copyright) with the United States Patent and Trademark Office, United States Copyright Office or any office or agency in
any political subdivision of the United States or in any other country or any political subdivision thereof, unless it promptly notifies the Collateral Agent, and, upon request of the Collateral Agent, executes and delivers any and all agreements,
instruments, documents and papers as the Collateral Agent may reasonably request to evidence the Security Interest in such Patent, Trademark or Copyright, and each Grantor hereby appoints the Collateral Agent as its attorney-in-fact to execute and
file such writings for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed; such power, being coupled with an interest, is irrevocable for the term of this Agreement. 
 (f) Each Grantor will take all necessary steps that are consistent with the practice in any proceeding before the United States Patent and Trademark
Office, United States Copyright Office or any office or agency in any political subdivision of the United States or in any other country or any political subdivision thereof, to maintain and pursue each material application relating to the Patents,
Trademarks and/or Copyrights (and to obtain the relevant grant or registration) and to maintain each issued Patent and each registration of the Trademarks and Copyrights that is material to the conduct of any Grantor’s business, including
timely filings of applications for renewal, affidavits of use, 

  

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affidavits of incontestability and payment of maintenance fees, and, if consistent with good business judgment, to initiate opposition, interference and
cancellation proceedings against third parties. 
 (g) In the event that any Grantor knows or has reason to believe that any Article 9
Collateral consisting of a Patent, Trademark or Copyright material to the conduct of any Grantor’s business has been or is about to be materially infringed, misappropriated or diluted by a third person, such Grantor promptly shall notify the
Collateral Agent and shall, if consistent with good business judgment, promptly sue for infringement, misappropriation or dilution and to recover any and all damages for such infringement, misappropriation or dilution, and take such other actions as
are appropriate under the circumstances to protect such Article 9 Collateral. 
 (h) Upon the occurrence and during the continuance of
an Event of Default, promptly following the request of the Collateral Agent, each Grantor shall use its best efforts to obtain all requisite consents or approvals by the licensor of each Copyright License, Patent License or Trademark License, and
each other material License, to effect the assignment of all such Grantor’s right, title and interest thereunder to the Collateral Agent, for the ratable benefit of the Secured Parties, or its designee. 
 ARTICLE V 
 Remedies 

SECTION 5.01. Remedies Upon Default. Upon the occurrence and during the continuance of an Event of Default, each Grantor agrees to
deliver each item of Collateral to the Collateral Agent on demand, and it is agreed that the Collateral Agent shall have the right to take any of or all the following actions at the same or different times: (a) with respect to any
Article 9 Collateral consisting of Intellectual Property, on demand, to cause the Security Interest to become an assignment, transfer and conveyance of any of or all such Article 9 Collateral by the applicable Grantor to the Collateral Agent,
or to license or sublicense, whether general, special or otherwise, and whether on an exclusive or nonexclusive basis, any such Article 9 Collateral throughout the world on such terms and conditions and in such manner as the Collateral Agent shall
determine (other than in violation of any then-existing licensing arrangements to the extent that waivers cannot upon the use of commercially reasonable efforts be obtained), and (b) with or without legal process and with or without prior
notice or demand for performance, to take possession of the Article 9 Collateral and without liability for trespass to enter any premises where the Article 9 Collateral may be located for the purpose of taking possession of or removing the Article 9
Collateral and, generally, to exercise any and all rights afforded to a secured party under the Uniform Commercial Code or other applicable law. Without limiting the generality of the foregoing, each Grantor agrees that the Collateral Agent shall
have the right, subject to the mandatory requirements of applicable law, to sell or otherwise dispose of all or any part of the Collateral at a public or private sale or at any broker’s board or on any securities exchange, for cash, upon credit
or for future delivery as the Collateral Agent shall deem 

  

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appropriate. The Collateral Agent shall be authorized at any such sale (if it deems it reasonable to do so) to restrict the prospective bidders or purchasers
to persons who will represent and agree that they are purchasing the Collateral for their own account for investment and not with a view to the distribution or sale thereof, and upon consummation of any such sale the Collateral Agent shall have the
right to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold. Each such purchaser at any such sale shall hold the property sold absolutely, free from any claim or right on the part of any Grantor, and each
Grantor hereby waives (to the extent permitted by law) all rights of redemption, stay and appraisal which such Grantor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. 
 The Collateral Agent shall give each applicable Grantor 10 days’ written notice (which each Grantor agrees is reasonable notice within the
meaning of Section 9-611 of the New York UCC or its equivalent in other jurisdictions) of the Collateral Agent’s intention to make any sale of Collateral. Such notice, in the case of a public sale, shall state the time and place for
such sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the board or exchange at which such sale is to be made and the day on which the Collateral, or portion thereof, will first be offered for sale at
such board or exchange. Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Collateral Agent may fix and state in the notice (if any) of such sale. At any such sale, the
Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole and absolute discretion) determine. The Collateral Agent shall not be obligated to make any sale of any
Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall have been given. The Collateral Agent may, without notice or publication, adjourn any public or private sale or cause the same to be
adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and place to which the same was so adjourned. In case any sale of all or any part of the Collateral is
made on credit or for future delivery, the Collateral so sold may be retained by the Collateral Agent until the sale price is paid by the purchaser or purchasers thereof, but the Collateral Agent shall not incur any liability in case any such
purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold again upon like notice. At any public (or, to the extent permitted by law, private) sale made pursuant to
this Agreement, any Secured Party may bid for or purchase, free (to the extent permitted by applicable law) from any right of redemption, stay, valuation or appraisal on the part of any Grantor (all said rights being also hereby waived and released
to the extent permitted by applicable law), the Collateral or any part thereof offered for sale and may make payment on account thereof by using any claim then due and payable to such Secured Party from any Grantor as a credit against the purchase
price, and such Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such property without further accountability to any Grantor therefor. For purposes hereof, a written agreement to purchase the Collateral or any
portion thereof shall be treated as a sale thereof; the Collateral Agent shall be free to carry out such sale pursuant to such agreement and no Grantor shall be entitled to the return of the Collateral or any portion thereof subject thereto,
notwithstanding the fact 

  

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that after the Collateral Agent shall have entered into such an agreement all Events of Default shall have been remedied and the Obligations paid in full. As
an alternative to exercising the power of sale herein conferred upon it, the Collateral Agent may proceed by a suit or suits at law or in equity to foreclose this Agreement and to sell the Collateral or any portion thereof pursuant to a judgment or
decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any sale pursuant to the provisions of this Section 5.01 shall be deemed to conform to the commercially reasonable standards as
provided in Section 9-610(b) of the New York UCC or its equivalent in other jurisdictions. 
 Any remedies provided in this
Section 5.01 shall be subject to the Intercreditor Agreement. 
 SECTION 5.02. Application of Proceeds. Subject to the
payment over provisions set forth in the Intercreditor Agreement, the Collateral Agent shall apply the proceeds of any collection, sale, foreclosure or other realization upon any Collateral, including any Collateral consisting of cash, as follows:

 FIRST, to the payment of all reasonable and documented costs and expenses incurred by the Administrative Agent or the
Collateral Agent (in their respective capacities as such hereunder or under any other Loan Document) in connection with such collection, sale, foreclosure or realization or otherwise in connection with this Agreement, any other Loan Document or any
of the Obligations, including all court costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made by the Administrative Agent and/or the Collateral Agent hereunder or under any other Loan Document on behalf
of any Grantor and any other costs or expenses incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document; 
 SECOND, to the payment in full of all other Obligations (the amounts so applied to be distributed among the Secured Parties pro rata in accordance with the amounts of the Obligations owed to them on the date of any
such distribution); and 
 THIRD, to the Grantors, their successors or assigns, or as a court of competent jurisdiction may
otherwise direct. 
 The Collateral Agent shall have absolute discretion as to the time of application of any such proceeds, moneys or balances in accordance
with this Agreement. Upon any sale of Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt of the Collateral Agent or of the officer making the sale shall be a
sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any part of the purchase money paid over to the Collateral Agent or such officer or be
answerable in any way for the misapplication thereof. 
  

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 SECTION 5.03. Grant of License to Use Intellectual Property. For the purpose of enabling
the Collateral Agent to exercise rights and remedies under this Agreement at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to the Collateral Agent an irrevocable,
nonexclusive license (exercisable without payment of royalty or other compensation to the Grantors), to use, license or sublicense any of the Article 9 Collateral consisting of Intellectual Property now owned or hereafter acquired by such
Grantor, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof. The
use of such license by the Collateral Agent may be exercised, at the option of the Collateral Agent, only upon the occurrence and during the continuation of an Event of Default; provided, however, that any license, sublicense or other
transaction entered into by the Collateral Agent in accordance herewith shall be binding upon each Grantor notwithstanding any subsequent cure of an Event of Default. 
 SECTION 5.04. Securities Act, Etc. In view of the position of the Grantors in relation to the Pledged Collateral, or because of other current or future circumstances, a question may arise under the U.S.
Securities Act of 1933, as now or hereafter in effect, or any similar statute hereafter enacted analogous in purpose or effect (such Act and any such similar statute as from time to time in effect being called the “Federal Securities
Laws”) with respect to any disposition of the Pledged Collateral permitted hereunder. Each Grantor understands that compliance with the Federal Securities Laws might very strictly limit the course of conduct of the Collateral Agent if
the Collateral Agent were to attempt to dispose of all or any part of the Pledged Collateral, and might also limit the extent to which or the manner in which any subsequent transferee of any Pledged Collateral could dispose of the same. Similarly,
there may be other legal restrictions or limitations affecting the Collateral Agent in any attempt to dispose of all or part of the Pledged Collateral under applicable “blue sky” or other state securities laws or similar laws analogous in
purpose or effect. Each Grantor recognizes that in light of such restrictions and limitations the Collateral Agent may, with respect to any sale of the Pledged Collateral, limit the purchasers to those who will agree, among other things, to acquire
such Pledged Collateral for their own account, for investment, and not with a view to the distribution or resale thereof. Each Grantor acknowledges and agrees that in light of such restrictions and limitations, the Collateral Agent, in its sole and
absolute discretion (a) may proceed to make such a sale whether or not a registration statement for the purpose of registering such Pledged Collateral or part thereof shall have been filed under the Federal Securities Laws and (b) may
approach and negotiate with a limited number of potential purchasers (including a single potential purchaser) to effect such sale. Each Grantor acknowledges and agrees that any such sale might result in prices and other terms less favorable to the
seller than if such sale were a public sale without such restrictions. In the event of any such sale, the Collateral Agent shall incur no responsibility or liability for selling all or any part of the Pledged Collateral at a price that the
Collateral Agent, in its sole and absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility that a substantially higher price might have been realized if the sale were deferred until after
registration as aforesaid or if more than a limited number of purchasers (or a single 

  

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purchaser) were approached. The provisions of this Section 5.04 will apply notwithstanding the existence of a public or private market upon which the
quotations or sales prices may exceed substantially the price at which the Collateral Agent sells. 
 ARTICLE VI 
 Indemnity, Subrogation and Subordination 
 SECTION 6.01. Indemnity and Subrogation. In addition to all such rights of indemnity and subrogation as the Guarantors may have under applicable law (but subject to Section 6.03), the Borrower
agrees that (a) in the event a payment shall be made by any Guarantor under this Agreement, the Borrower shall indemnify such Guarantor for the full amount of such payment and such Guarantor shall be subrogated to the rights of the person to
whom such payment shall have been made to the extent of such payment and (b) in the event any assets of any Guarantor shall be sold pursuant to this Agreement or any other Security Document to satisfy in whole or in part a claim of any Secured
Party, the Borrower shall indemnify such Guarantor in an amount equal to the greater of the book value or the fair market value of the assets so sold. 
 SECTION 6.02. Contribution and Subrogation. Each Guarantor (a “Contributing Guarantor”) agrees (subject to Section 6.03) that, in the event a payment shall be made by any
other Guarantor hereunder in respect of any Obligation, or assets of any other Guarantor shall be sold pursuant to any Security Document to satisfy any Obligation owed to any Secured Party, and such other Guarantor (the “Claiming
Guarantor”) shall not have been fully indemnified by the Borrower as provided in Section 6.01, the Contributing Guarantor shall indemnify the Claiming Guarantor in an amount equal to (i) the amount of such payment or
(ii) the greater of the book value or the fair market value of such assets, as the case may be, in each case multiplied by a fraction of which the numerator shall be the net worth of the Contributing Guarantor on the date hereof and the
denominator shall be the aggregate net worth of all the Guarantors on the date hereof (or, in the case of any Guarantor becoming a party hereto pursuant to Section 7.16, the date of the supplement hereto executed and delivered by such
Guarantor). Any Contributing Guarantor making any payment to a Claiming Guarantor pursuant to this Section 6.02 shall be subrogated to the rights of such Claiming Guarantor under Section 6.01 to the extent of such payment. 
 SECTION 6.03. Subordination. (a) Notwithstanding any provision of this Agreement to the contrary, all rights of the Guarantors under
Sections 6.01 and 6.02 and all other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully subordinated to the indefeasible payment in full in cash of the Obligations. No failure on the part of the
Borrower or any Guarantor to make the payments required by Sections 6.01 and 6.02 (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of any Guarantor with respect to its
obligations hereunder, and each Guarantor shall remain liable for the full amount of its obligations hereunder. 
  

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 (b) The Borrower and each Guarantor hereby agree that all Indebtedness and other monetary obligations
owed by it to the Borrower or any Subsidiary shall, upon the occurrence and during the continuance of an Event of Default, be fully subordinated to the indefeasible payment in full in cash of the Obligations. 
 ARTICLE VII 
 Miscellaneous 

 SECTION 7.01. Notices. All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in
writing and given as provided in Section 9.01 of the Second Lien Credit Agreement. All communications and notices hereunder to any Subsidiary Guarantor shall be given to it in care of the Borrower as provided in Section 9.01 of the Second
Lien Credit Agreement. 
 SECTION 7.02. Security Interest Absolute. In accordance with applicable laws, all rights of the
Collateral Agent hereunder, the Security Interest, the grant of a security interest in the Pledged Collateral and all obligations of each Grantor hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or
enforceability of the Second Lien Credit Agreement, any other Loan Document, any agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place
of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Second Lien Credit Agreement, any other Loan Document or any other agreement or instrument relating
to the foregoing, (c) any exchange, release or non-perfection of any Lien on other collateral (except for dispositions of Collateral permitted pursuant to the terms of the Second Lien Credit Agreement), or any release or amendment or waiver of
or consent under or departure from any guarantee, securing or guaranteeing all or any of the Obligations, or (d) any other circumstance that might otherwise constitute a defense available to, or a discharge of, any Grantor in respect of the
Obligations or this Agreement. 
 SECTION 7.03. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by
the Lenders and shall survive the execution and delivery of the Loan Documents and the making of any Loans, regardless of any investigation made by any Lender or on their behalf and notwithstanding that the Collateral Agent or any Lender may have
had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended under the Second Lien Credit Agreement, and shall continue in full force and effect as long as the principal of or any accrued interest
on any Loan or any fee or any other amount payable under any Loan Document is outstanding and unpaid. 
 SECTION 7.04. Binding Effect;
Several Agreement. This Agreement shall become effective as to any Loan Party when a counterpart hereof executed on behalf 

  

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of such Loan Party shall have been delivered to the Collateral Agent and a counterpart hereof shall have been executed on behalf of the Collateral Agent, and
thereafter shall be binding upon such Loan Party and the Collateral Agent and their respective permitted successors and assigns, and shall inure to the benefit of such Loan Party, the Collateral Agent and the other Secured Parties and their
respective successors and assigns, except that no Loan Party shall have the right to assign or transfer its rights or obligations hereunder or any interest herein or in the Collateral (and any such assignment or transfer shall be void) except as
expressly contemplated or permitted by this Agreement or the Second Lien Credit Agreement. This Agreement shall be construed as a separate agreement with respect to each Loan Party and may be amended, modified, supplemented, waived or released with
respect to any Loan Party without the approval of any other Loan Party and without affecting the obligations of any other Loan Party hereunder. 
 SECTION 7.05. Successors and Assigns. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and all covenants,
promises and agreements by or on behalf of any Grantor or the Collateral Agent that are contained in this Agreement shall bind and inure to the benefit of their respective successors and assigns. 
 SECTION 7.06. Collateral Agent’s Fees and Expenses; Indemnification. (a) The parties hereto agree that the Collateral Agent shall
be entitled to reimbursement of its expenses incurred hereunder as and to the extent provided in Section 9.05 of the Second Lien Credit Agreement. 
 (b) Without limitation of its indemnification obligations under the other Loan Documents, each Grantor jointly and severally agrees to indemnify the Collateral Agent and the other indemnitees against, and hold each
indemnitee harmless from, any and all losses, claims, damages, liabilities, and related expenses, including reasonable and documented counsel fees, charges and disbursements (subject to the limitations set forth in Section 9.05(a) of the Second
Lien Credit Agreement), incurred by or asserted against any indemnitee arising out of, in any way connected with, or as a result of, the execution or delivery or performance of this Agreement or any agreement or instrument contemplated hereby or any
claim, litigation, investigation or proceeding relating to any of the foregoing or to the Collateral, regardless of whether any indemnitee is a party thereto or whether initiated by a third party or by a Loan Party or any Affiliate thereof;
provided, however, that such indemnity shall not, as to any indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence or wilful misconduct of such indemnitee. To the extent permitted by applicable law, no Grantor shall assert, and each Grantor hereby waives any claim against any indemnitee, on any
theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or any agreement or instrument contemplated hereby, the
Transactions or any Loan or the use of proceeds thereof. 
  

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 (c) Any such amounts payable as provided hereunder shall be additional Obligations secured hereby and by
the other Security Documents. The provisions of this Section 7.06 shall remain operative and in full force and effect regardless of the termination of this Agreement or any other Loan Document, the consummation of the transactions contemplated
hereby, the repayment of any of the Obligations, the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, or any investigation made by or on behalf of the Collateral Agent or any other Secured Party.
All amounts due under this Section 7.06 shall be payable promptly following written demand therefor and shall bear interest, on and from the date of demand, at the rate specified in Section 2.06(a) of the Second Lien Credit Agreement.

 SECTION 7.07. Collateral Agent Appointed Attorney-in-Fact. Upon the occurrence and during the continuation of an Event of
Default, each Grantor hereby appoints the Collateral Agent as the attorney-in-fact of such Grantor for the purpose of carrying out the provisions of this Agreement and taking any action and executing any instrument that the Collateral Agent may deem
necessary or advisable to accomplish the purposes hereof, which appointment is irrevocable for the term of this Agreement and coupled with an interest; provided, however, that notwithstanding the preceding each Grantor hereby
immediately appoints the Collateral Agent as the attorney-in-fact of such Grantor for the purpose of perfecting any security interest created hereunder. Without limiting the generality of the foregoing, the Collateral Agent shall have the right,
upon the occurrence and during the continuance of an Event of Default, with full power of substitution either in the Collateral Agent’s name or in the name of such Grantor (a) to receive, endorse, assign and/or deliver any and all notes,
acceptances, checks, drafts, money orders or other evidences of payment relating to the Collateral or any part thereof, (b) to demand, collect, receive payment of, give receipt for and give discharges and releases of all or any of the
Collateral, (c) to sign the name of any Grantor on any invoice or bill of lading relating to any of the Collateral, (d) to send verifications of Accounts Receivable to any Account Debtor, (e) to commence and prosecute any and all
suits, actions or proceedings at law or in equity in any court of competent jurisdiction to collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of any Collateral, (f) to settle, compromise, compound,
adjust or defend any actions, suits or proceedings relating to all or any of the Collateral, (g) to notify, or to require any Grantor to notify, Account Debtors to make payment directly to the Collateral Agent, and (h) to use, sell,
assign, transfer, pledge, make any agreement with respect to or otherwise deal with all or any of the Collateral, and to do all other acts and things necessary to carry out the purposes of this Agreement in accordance with its terms, as fully and
completely as though the Collateral Agent were the absolute owner of the Collateral for all purposes; provided, however, that nothing herein contained shall be construed as requiring or obligating the Collateral Agent to make any
commitment or to make any inquiry as to the nature or sufficiency of any payment received by the Collateral Agent, or to present or file any claim or notice, or to take any action with respect to the Collateral or any part thereof or the moneys due
or to become due in respect thereof or any property covered thereby. The Collateral Agent and the other Secured Parties shall be accountable only for amounts actually received as a result of the exercise of the powers granted to them herein, and
neither they nor their officers, directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence, wilful misconduct or bad faith. 
  

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 SECTION 7.08. Applicable Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. 
 SECTION 7.09. Waivers; Amendment. (a) No failure or delay by the
Collateral Agent, the Administrative Agent or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver hereof or thereof, nor shall any single or partial exercise of any such right or power, or
any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Collateral Agent, the Administrative Agent and
the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of any Loan Document or consent to any departure by any Loan Party
therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section 7.09, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given.
Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a waiver of any Default, regardless of whether the Collateral Agent or any Lender may have had notice or knowledge of such Default at the time. No
notice or demand on any Loan Party in any case shall entitle any Loan Party to any other or further notice or demand in similar or other circumstances. 
 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements in writing entered into by the Collateral Agent and the Loan Party or Loan Parties
with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with Section 9.08 of the Second Lien Credit Agreement. 
 SECTION 7.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER
INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7.10. 
  

 32 

 SECTION 7.11. Severability. In the event any one or more of the provisions contained in
this Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and therein shall not in any way be affected or
impaired thereby (it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
 SECTION 7.12. Counterparts. This Agreement may be executed in counterparts (and by different parties hereto on different counterparts),
each of which shall constitute an original but all of which when taken together shall constitute a single contract, and shall become effective as provided in Section 7.04. Delivery of an executed signature page to this Agreement by facsimile
transmission shall be as effective as delivery of a manually signed counterpart of this Agreement. 
 SECTION 7.13. Headings.
Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.

 SECTION 7.14. Jurisdiction; Consent to Service of Process. (a) Each of the Grantors hereby irrevocably and
unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York State court or Federal court of the United States of America, sitting in New York City, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or any other Loan Document, or for recognition or enforcement of any judgment, and each of the Loan Parties hereby irrevocably and unconditionally agrees that all claims in respect of any such
action or proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and
may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or any other Loan Document shall affect any right that the Collateral Agent, the Administrative Agent or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Grantor or its properties in the courts of any jurisdiction. 
 (b) Each of the Loan Parties hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (a) of this Section 7.14. Each of the
parties hereto irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
  

 33 

 (c) Each of the parties hereto hereby irrevocably consents to service of process in the manner provided
for notices in Section 7.01. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
 SECTION 7.15. Termination or Release. (a) This Agreement, the guarantees made herein, the Security Interest, the pledge of the Pledged
Collateral and all other security interests granted hereby shall automatically terminate when all the Obligations (except for contingent indemnification obligations) have been indefeasibly paid in full and the Lenders have no further commitment to
lend under the Second Lien Credit Agreement. 
 (b) A Subsidiary Guarantor shall automatically be released from its obligations hereunder and
the Security Interests created hereunder in the Collateral of such Subsidiary Guarantor shall be automatically released upon the consummation of any transaction permitted by the Second Lien Credit Agreement as a result of which such Subsidiary
Guarantor ceases to be a Subsidiary. 
 (c) Subject to Section 3.04(b) of the Intercreditor Agreement, (i) upon any sale or other
transfer by any Grantor of any Collateral that is permitted under the Second Lien Credit Agreement to any person that is not the Borrower or a Guarantor or (ii) upon the effectiveness of any written consent to the release of the Security
Interest granted hereby in any Collateral pursuant to Section 9.08 of the Second Lien Credit Agreement, the Security Interest in such Collateral shall be automatically released. 
 (d) In connection with any termination or release pursuant to paragraph (a), (b) or (c) above, the Collateral Agent shall promptly execute
and deliver to any Grantor, at such Grantor’s expense, all Uniform Commercial Code termination statements and similar documents that such Grantor shall reasonably request to evidence such termination or release. Any execution and delivery of
documents pursuant to this Section 7.15 shall be without recourse to or representation or warranty by the Collateral Agent or any Secured Party. Without limiting the provisions of Section 7.06, the Borrower shall reimburse the Collateral
Agent upon demand for all costs and out of pocket expenses, including the fees, charges and expenses of counsel, incurred by it in connection with any action contemplated by this Section 7.15. 
 SECTION 7.16. Additional Subsidiaries. Any Subsidiary that is required to become a party hereto pursuant to Section 5.12 of the Second
Lien Credit Agreement shall enter into this Agreement as a Subsidiary Guarantor and a Grantor upon becoming such a Subsidiary. Upon execution and delivery by the Collateral Agent and such Subsidiary of a supplement in the form of Exhibit A
hereto, such Subsidiary shall become a Subsidiary Guarantor and a Grantor hereunder with the same force and effect as if originally named as a Subsidiary Guarantor and a Grantor herein. The execution and delivery of any such instrument shall not
require the consent of any other Loan Party hereunder. The rights and obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the addition of any new Loan Party as a party to this Agreement. 
  

 34 

 SECTION 7.17. Right of Setoff. If an Event of Default shall have occurred and is
continuing, each Secured Party is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all Collateral (including any deposits (general or special, time or demand, provisional or
final)) at any time held and other obligations at any time owing by such Secured Party to or for the credit or the account of any Grantor against any and all of the obligations of such Grantor now or hereafter existing under this Agreement and the
other Loan Documents held by such Secured Party, irrespective of whether or not such Secured Party shall have made any demand under this Agreement or any other Loan Document and although such obligations may be unmatured. The rights of each Secured
Party under this Section 7.17 are in addition to other rights and remedies (including other rights of setoff) which such Secured Party may have. 
 SECTION 7.18. Intercreditor Agreement Governs. NOTWITHSTANDING ANYTHING HEREIN TO THE CONTRARY, THE LIEN AND SECURITY INTEREST GRANTED TO THE COLLATERAL AGENT, FOR THE BENEFIT OF THE SECURED PARTIES,
PURSUANT TO THIS AGREEMENT AND THE EXERCISE OF ANY RIGHT OR REMEDY BY THE COLLATERAL AGENT AND THE OTHER SECURED PARTIES HEREUNDER ARE SUBJECT TO THE PROVISIONS OF THE INTERCREDITOR AGREEMENT. IN THE EVENT OF ANY CONFLICT OR INCONSISTENCY BETWEEN
THE PROVISIONS OF THE INTERCREDITOR AGREEMENT AND THIS AGREEMENT, THE PROVISIONS OF THE INTERCREDITOR AGREEMENT SHALL CONTROL. 
 SECTION
7.19. Obligations of Grantors. To the extent that the obligations of any Grantor hereunder shall conflict, or shall be inconsistent, with the obligations of such Grantor under the First Lien Guarantee and Collateral Agreement, the
provisions of the First Lien Guarantee and Collateral Agreement shall control. 
 SECTION 7.20. Delivery of Collateral.
Notwithstanding anything herein to the contrary, prior to the Discharge of First Lien Obligations, to the extent any Grantor is required hereunder to deliver Collateral to the Collateral Agent for purposes of possession and control and is
unable to do so as a result of having previously delivered such Collateral to the First Lien Collateral Agent in accordance with the terms of the First Lien Guarantee and Collateral Agreement, such Grantor’s obligations hereunder with respect
to such delivery shall be deemed satisfied by the delivery to the First Lien Collateral Agent, acting as a gratuitous bailee of the Collateral Agent. 
 [Remainder of page intentionally left blank] 
  

 35 

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

			
	INTERSTATE FIBERNET, INC.,
		
	by	 	 /s/ J. Thomas Mullis

	Name:	 	J. Thomas Mullis
	Title:	 	Sr. Vice President
	
	ITC^DELTACOM, INC.,
		
	by	 	 /s/ J. Thomas Mullis

	Name:	 	J. Thomas Mullis
	Title:	 	Sr. Vice President
	
	EACH OF THE SUBSIDIARIES LISTED ON SCHEDULE I HERETO,
		
	by	 	 /s/ J. Thomas Mullis

	Name:	 	J. Thomas Mullis
	Title:	 	Authorized Signatory

			
	 CREDIT SUISSE, CAYMAN ISLANDS
 BRANCH, as Collateral Agent,

		
	 by
	 	 /s/ James Moran

	 Name:
	 	James Moran
	 Title:
	 	Managing Director
		
	 by
	 	 /s/ Nupur Kumar

	 Name:
	 	Nupur Kumar
	 Title:
	 	AssociateExhibit 10.5

 Exhibit 10.5 
  

 EQUITY PURCHASE AND RIGHTS OFFERING AGREEMENT 
 Dated as of July 16, 2007 
 By and Among 
 ITC^DeltaCom, Inc. 
 and 
 THE PURCHASERS LISTED ON THE SIGNATURE PAGES HERETO 
  

 TABLE OF CONTENTS 
  

					
	 	  	Page
	
	ARTICLE I
	
	Escrow of Purchase Price; Purchase and Sale of the Shares; Closing
			
	 Section 1.01
	 	Delivery of Purchase Price into Escrow	  	2
	 Section 1.02
	 	Purchase and Sale of the Shares	  	2
	 Section 1.03
	 	Closing	  	2
	
	ARTICLE II
	
	Representations and Warranties of the Company
			
	 Section 2.01
	 	Organization, Standing, etc.	  	2
	 Section 2.02
	 	Capital Stock	  	3
	 Section 2.03
	 	Issuance of Shares	  	5
	 Section 2.04
	 	Authorization; Enforcement	  	5
	 Section 2.05
	 	Recapitalization	  	5
	 Section 2.06
	 	Absence of Changes	  	6
	 Section 2.07
	 	Compliance with Laws	  	6
	 Section 2.08
	 	No Conflicts; Consents	  	6
	 Section 2.09
	 	No Violation	  	8
	 Section 2.10
	 	Legal and Governmental Proceedings	  	8
	 Section 2.11
	 	Investment Company	  	8
	 Section 2.12
	 	Full Disclosure	  	8
	 Section 2.13
	 	Financial Statements; Books and Records	  	8
	 Section 2.14
	 	Taxes	  	9
	 Section 2.15
	 	Title to Properties	  	10
	 Section 2.16
	 	Intellectual Property	  	10
	 Section 2.17
	 	Environmental Matters	  	10
	 Section 2.18
	 	Transactions with Affiliates	  	11
	 Section 2.19
	 	No Shareholder Vote Required	  	11
	 Section 2.20
	 	Securities Act	  	11
	 Section 2.21
	 	General Solicitation	  	11
	 Section 2.22
	 	Integration	  	11
	 Section 2.23
	 	Solvency	  	12
	 Section 2.24
	 	No Brokers	  	12
	
	ARTICLE III
	
	Representations and Warranties of the Purchasers
			
	 Section 3.01
	 	Organization; Authorization; Enforcement	  	12

  

 i 

					
	 Section 3.02
	 	Compliance with Securities Act	  	13
	 Section 3.03
	 	QIB and Accredited Investor Status	  	13
	 Section 3.04
	 	Reliance on Exemptions	  	13
	 Section 3.05
	 	Legends	  	13
	 Section 3.06
	 	Brokers	  	14
	 Section 3.07
	 	Own Account	  	14
	 Section 3.08
	 	Experience of Purchaser	  	14
	 Section 3.09
	 	Availability of Funds	  	15
	 Section 3.10
	 	Majority of Purchasers	  	15
	 Section 3.11
	 	Shares	  	15
	
	ARTICLE IV
	
	Covenants
			
	 Section 4.01
	 	Rights Offering.	  	15
	 Section 4.02
	 	Authorization.	  	17
	 Section 4.03
	 	Rights Offering; Registration Statements	  	17
	 Section 4.04
	 	Reporting Status	  	20
	 Section 4.05
	 	Company Lock-Up	  	20
	 Section 4.06
	 	No Integration	  	20
	 Section 4.07
	 	Compliance with Laws	  	21
	 Section 4.08
	 	Publicity	  	21
	 Section 4.09
	 	Fees and Expenses	  	21
	
	ARTICLE V
			
	 Section 5.01
	 	Additional Covenants of the Purchasers	  	21
	
	ARTICLE VI
	
	Conditions To The Obligations of The Parties
			
	 Section 6.01
	 	Conditions to the Obligations of the Purchasers	  	22
	 Section 6.02
	 	Conditions to the Obligations of the Company	  	24
	
	ARTICLE VII
			
		 	Indemnification and Contribution	  	24
	
	ARTICLE VIII
	
	Termination
			
	 Section 8.01
	 	Termination	  	26

  

 ii 

					
	ARTICLE IX
	
	Miscellaneous
			
	Section 9.01	 	Surviving Provisions	  	28
	Section 9.02	 	Transfer Taxes	  	28
	Section 9.03	 	Entire Agreement	  	28
	Section 9.04	 	Amendment and Waiver	  	28
	Section 9.05	 	Extension; Waiver	  	28
	Section 9.06	 	Notices	  	28
	Section 9.07	 	Assignment	  	29
	Section 9.08	 	Exhibits and Annexes; Interpretation	  	30
	Section 9.09	 	GOVERNING LAW	  	30
	Section 9.10	 	WAIVER OF JURY TRIAL	  	30
	Section 9.11	 	Consent to Jurisdiction	  	30
	Section 9.12	 	Specific Performance	  	30
	Section 9.13	 	Counterparts	  	31
	Section 9.14	 	Further Assurances	  	31
	Section 9.15	 	No Third Party Beneficiaries	  	31
			
	 Exhibits
	 		  	
	Exhibit A	 	Recapitalization Description and Schedule 1 thereto	  	
	Exhibit B	 	Form of Certificate of Designation of Series H 6% Convertible Redeemable Preferred Stock	  	
	Exhibit C	 	Form of Escrow Agreement	  	

  

 iii 

			
	INDEX OF DEFINED TERMS
		
	 Term
	  	Section
	 Agreement
	  	Recitals
	 Aggregate Offering Amount
	  	Section 4.01(a)
	 Aggregate Purchase Price
	  	Section 1.01
	 Business Day
	  	Section 4.01(b)
	 Certificate of Designation
	  	Recitals
	 Closing
	  	Section 1.02
	 Closing Date
	  	Section 1.02
	 Common Stock
	  	Recitals
	 Common Stock Per Share Purchase Price
	  	Recitals
	 Company
	  	Recitals
	 Conversion of Shares
	  	Recitals
	 Eligible Holder
	  	Section 4.01(a)
	 Environmental Laws
	  	Section 2.17
	 Escrow Agreement
	  	Section 1.01
	 Exchange Act
	  	Section 2.08(b)
	 Exercise of Rights
	  	Recitals
	 Existing Preferred Stock
	  	Section 2.02(a)
	 Existing Warrants
	  	Section 2.02(a)
	 Expiration Time
	  	Section 4.01(b)
	 GAAP
	  	Section 2.13(a)
	 Governmental Entity
	  	Section 2.08(b)
	 include, includes, included, including
	  	Section 5.07(b)
	 Indemnifying Party
	  	Section 7.01
	 Intellectual Property
	  	Section 2.16
	 Investment Decision Package
	  	Section 4.03(f)
	 Issuer Free Writing Prospectus
	  	Section 4.07(f)
	 Lock-Up Period
	  	Section 4.05(a)
	 Losses
	  	Section 7.01
	 Majority of Purchasers
	  	Section 3.10
	 Material Adverse Effect
	  	Section 2.01
	 Recapitalization Documents
	  	Section 2.05
	 Per Share Purchase Price
	  	Section 1.01
	 Permits
	  	Section 2.07(b)
	 person
	  	Section 5.07(b)
	 Preferred Stock Amendments
	  	Section 2.08(b)
	 Preliminary Rights Offering Prospectus
	  	Section 4.03(f)
	 Proceedings
	  	Section 7.01
	 Purchaser
	  	Recitals
	 Purchasers
	  	Recitals
	 Purchasers Confidentiality Agreements
	  	Section 5.01(d)
	 QIB
	  	Section 3.03
	 Recapitalization
	  	Recitals

  

 iv 

			
	 Recapitalization Documents
	  	Section 2.05
	 Record Date
	  	Section 4.01(a)
	 Rights
	  	Recitals
	 Rights Exercise Period
	  	Section 4.01(b)
	 Rights Offering
	  	Recitals
	 Rights Offering Closing Date
	  	Section 4.01(g)
	 Rights Offering Commencing Date
	  	Section 4.01(b)
	 Rights Offering Prospectus
	  	Section 4.03(f)
	 Rights Offering Registration Statement
	  	Section 4.03(a)
	 Rights Offering Shares
	  	Section 4.01(a)
	 SEC
	  	Section 2.08(b)
	 SEC Filings
	  	Section 2.12
	 Securities Act
	  	Section 2.08(b)
	 Securities Act Effective Date
	  	Section 4.03(f)
	 Series A Preferred Stock
	  	Section 2.02(a)
	 Series A Warrants
	  	Section 2.02(a)
	 Series B Preferred Stock
	  	Section 2.02(a)
	 Series C Preferred Stock
	  	Section 2.02(a)
	 Series D Warrants
	  	Section 2.02(a)
	 Share Purchase Number
	  	Recitals
	 Shares
	  	Recitals
	 Stock Incentive Plans
	  	Section 2.02(a)
	 Stockholders Lock-Up Period Agreement
	  	Section 4.05(b)
	 Subscription Agent
	  	Section 4.01(c)
	 Subscription Ratio
	  	Recitals
	 Tax
	  	Section 2.14(b)
	 Tax Return
	  	Section 2.14(b)
	 Unsubscribed Shares
	  	Section 4.01(f)

 EQUITY PURCHASE AND RIGHTS OFFERING AGREEMENT (this “Agreement”), dated
as of July 16, 2007, by and among the purchasers listed on the signature pages hereto (each a “Purchaser” and together, the “Purchasers”) and ITC^DeltaCom, Inc., a Delaware corporation (the
“Company”). 
 WHEREAS, the Company intends to consummate a recapitalization of its capital structure (the
“Recapitalization”) as described in Exhibit A annexed hereto; and 
 WHEREAS, concurrently with the Recapitalization,
the Company desires to issue and sell to the Purchasers an aggregate of 412,215 shares of the Company’s Series H 6% Convertible Redeemable Preferred Stock, par value $0.01 per share (the “Shares”), the Certificate of
Designation for which will be substantially in the form annexed hereto as Exhibit B with such non-material changes as may be necessary for acceptance of form by the Secretary of State of Delaware (the “Certificate of
Designation”) and each of which will be convertible into 33 shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”), and each Purchaser desires to purchase from the Company that number of
Shares set forth opposite such Purchaser’s name on the signature pages hereof (the “Share Purchase Number” with respect to such Purchaser); and 
 WHEREAS, as soon as reasonably practicable following the closing of the purchase of the Shares by the Purchasers, the Company proposes to conduct a rights offering by distributing to each holder of record (as of a
certain record date) of its shares of Common Stock (certain holders having agreed not to participate therein), at no charge, non-transferable rights (the “Rights”) entitling the holder of each share of Common Stock to purchase from
the Company 1.18 shares of Common Stock at a purchase price of $3.03 per share (the “Common Stock Per Share Purchase Price”), rounded to the nearest whole share (the “Rights Offering”); and 
 WHEREAS, the subscription ratio shall be 1.18 shares of Common Stock per Right, based on the currently estimated number of shares of outstanding Common
Stock held immediately after the Closing by stockholders of the Company eligible to participate in the Rights Offering (11,536,618 shares of Common Stock), subject to adjustment if the actual number of such shares of Common Stock shall differ from
such estimate (such ratio, as so adjusted, the “Subscription Ratio”); and 
 WHEREAS, the Company has reserved 13,604,455
shares of Common Stock issuable pursuant to the exercise of rights in the Rights Offering (the “Exercise of Rights”) and for the mandatory conversion of the Shares in accordance with the Certificate of Designation (the
“Conversion of Shares”); 

 NOW, THEREFORE, in consideration of the premises and the mutual agreements herein set forth, the parties
hereto agree as follows: 
 ARTICLE I 
 Escrow of Purchase Price; Purchase and Sale of the Shares; Closing 
 Section 1.01 Delivery of Purchase Price into
Escrow. Simultaneously with the execution hereof, each Purchaser is delivering by wire transfer of immediately available funds to the Escrow Agent (as defined in the Escrow Agreement annexed hereto as Exhibit C (the “Escrow
Agreement”)) the sum of $100 (the “Per Share Purchase Price”) multiplied by such Purchaser’s applicable Share Purchase Number (the “Aggregate Purchase Price” with respect to such Purchaser). The
Company shall pay simple interest to the Purchasers at the rate of 6% per annum of the Aggregate Purchase Price so long as the Aggregate Purchase Price remains subject to the Escrow Agreement. The Company shall reimburse and indemnify the
Purchasers against any costs, expenses, losses or claims of any type of the Escrow Agent and/or against the failure of the Company to pay any fees pursuant to the Escrow Agreement; 
 Section 1.02 Purchase and Sale of the Shares. Subject to the terms and conditions set forth herein and in the Escrow Agreement, on the
Closing Date, the Company shall issue and sell to each Purchaser, and each Purchaser shall purchase from the Company, the number of Shares equal to such Purchaser’s applicable Share Purchase Number at the Aggregate Purchase Price, to be paid by
wire transfer of immediately available funds from the Escrow Agent to the Company and against delivery of duly executed certificates to each Purchaser representing the number of Shares which such Purchaser is purchasing hereunder and payment of
accrued interest on the Aggregate Purchase Price pursuant to Section 1.01. 
 Section 1.03 Closing. The sale of the Shares
by the Company to each Purchaser and the purchase of the Shares by each Purchaser from the Company (such sale and purchase collectively, the “Closing”) will take place at 10:00 a.m., New York City time, on July 31, 2007,
or such other date as the Company closes the Recapitalization (the “Closing Date”), at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New York, New York 10036. 
 ARTICLE II 
 Representations and Warranties
of the Company 
 The Company represents and warrants to, and agrees with, each Purchaser that: 
 Section 2.01 Organization, Standing, etc. The Company and each of its subsidiaries is a corporation duly organized and validly existing and in
good standing under the laws of the jurisdiction in which it is organized, with all requisite power and authority (corporate and other) to own, lease and operate its properties and to conduct its business as currently owned, 

  

 2 

 
leased, operated and conducted, and is duly registered and qualified to conduct its business and is in good standing in each jurisdiction or place where the
nature of its properties or the conduct of its business requires such registration or qualification, except where the failure to so register or qualify or to be in good standing, has not had, and would not reasonably be expected to have,
individually or in the aggregate, a material adverse effect on the business, assets, liabilities, operations, condition (financial or otherwise), operating results or prospects of the Company and its subsidiaries, taken as a whole (a
“Material Adverse Effect”). 
 Section 2.02 Capital Stock. (a) As of June 30, 2007, before giving
effect to the Recapitalization and the Closing, the authorized capital stock of the Company consists of 350,000,000 shares of Common Stock and 50,000,000 shares of preferred stock, of which (i) 18,770,942 shares of Common Stock (excluding
treasury shares) are issued and outstanding, (ii) no shares of Common Stock are held by the Company as treasury shares, (iii) approximately 340,000, 1,000,000, 6,700,000 and 5,600,000 shares of Common Stock are reserved for future issuance
pursuant to the Company’s common stock purchase warrants originally issued on October 29, 2002 (the “Series A Warrants”), common stock purchase warrants originally issued on October 6, 2003, common stock purchase
warrants originally issued on March 29, 2005 and warrants originally issued on July 26, 2005 (the “Series D Warrants”), respectively (collectively, the “Existing Warrants”), (iv) options to acquire
620,140 shares of Common Stock pursuant to the Company’s Amended and Reinstated Stock Incentive Plan and Executive Stock Incentive Plan (together, the “Stock Incentive Plans”) are issued and outstanding, (v) restricted
stock units for 3,215,601 shares of Common Stock, stock units for approximately 14,016 shares of the Company’s 8% Series A Convertible Redeemable Preferred Stock, par value $0.01 per share (the “Series A Preferred Stock”), and
stock units for approximately 42,138 shares of the Company’s 8% Series B Convertible Redeemable Preferred Stock, par value $0.01 per share, (the “Series B Preferred Stock”) are issued and outstanding pursuant to the Stock
Incentive Plans, (vi) 670,453 shares of Common Stock are reserved and available for issuance pursuant to future awards under the Stock Incentive Plans and (vii) 201,883 shares of the Series A Preferred Stock, 607,087 shares of the
Series B Preferred Stock and 0 shares of the 8% Series C Convertible Redeemable Preferred Stock, par value $0.01 per share, (the “Series C Preferred Stock”) (collectively, the “Existing Preferred Stock”)
are issued and outstanding. 
 (b) All of the issued shares of capital stock of the Company have been duly and validly
authorized and issued and are fully paid and non-assessable. There are no anti-dilution or price adjustment provisions contained in any security issued by the Company (or in any agreement providing rights to security holders) that will be triggered
by the issuance of the Shares. 
 (c) As of the Closing Date, after giving effect to the Recapitalization (but not the Rights
Offering) and the Closing, the authorized capital stock of the Company will consist of 350,000,000 shares of Common Stock and 50,000,000 shares of preferred stock, of which not more than (i) 68,000,000 shares of Common Stock (excluding treasury
shares) will be issued and outstanding, (ii) no shares of Common Stock will be held by the Company as treasury shares, (iii) 412,215 Shares will be issued and outstanding, and (iv) assuming no exercise thereof has taken place,
(a) options to 

  

 3 

 
acquire 620,140 shares of Common Stock pursuant to the Stock Incentive Plans will be issued and outstanding, (b) restricted stock units for
approximately 4,790,768 shares of Common Stock will be issued and outstanding pursuant to the Stock Incentive Plans, (c) 670,453 shares of Common Stock will be reserved and available for issuance pursuant to future awards under the Stock
Incentive Plans, and (d) approximately 340,000 shares of Common Stock will be reserved for future issuance pursuant to the Series A Warrants. Except for the Rights Offering and except as set forth in the immediately preceding sentence,
immediately following the Recapitalization and the Closing, 13,604,455 shares of Common Stock will be reserved for issuance pursuant to the Exercise of Rights and the Conversion of Shares, and (x) there will be no outstanding securities,
options, “phantom” stock rights, stock appreciation rights, stock-based performance units, warrants, calls, rights, contracts, commitments, agreements, instruments, arrangements, understandings, obligations or undertakings of any kind to
which the Company or any of its subsidiaries is bound, (A) obligating the Company or any of its subsidiaries to issue, deliver or sell, or cause to be issued, delivered or sold, additional shares of capital stock or other voting securities of,
or securities convertible into, or exchangeable or exercisable for, shares of capital stock or other voting securities of, the Company or any of its subsidiaries or that give any person the right to receive any economic benefit or right similar to
or derived from the economic benefits and rights occurring to holders of shares of capital stock or other voting securities of the Company or any of its subsidiaries or (B) other than in connection with the Company’s Stock Incentive Plans,
obligating the Company or any of its subsidiaries to issue, grant, extend or enter into any security, option, “phantom” stock rights, stock appreciation right, stock-based performance unit, warrant, call, right, contract, commitment,
agreement, instrument, arrangement, understanding, obligation or undertaking, (y) there will be no outstanding contractual obligations of the Company or any of its subsidiaries to repurchase, redeem or otherwise acquire any shares of capital
stock of the Company or its subsidiaries or any option or other equity-based award (other than the redemption of the Shares pursuant to this Agreement and the Certificate of Designation) and (z) there will be no agreements or arrangements under
which the Company or any of its subsidiaries will be obligated to register the sale of any of its or their securities under the Securities Act, except (1) the Rights Offering Registration Statement, (2) the Registration Rights Agreement,
dated as of October 6, 2003, as amended, among the Company and WCAS Securityholders listed on the signature pages thereof and (3) the Registration Rights Agreement, dated as of July 26, 2005, as may be amended from time to time, among
the Company and the TCP Securityholders listed on the signature pages thereof. 
 (d) The Overview of DeltaCom Equity
Structure attached as Schedule 1 to Exhibit A attached hereto sets forth a pro forma representation of the Common Stock ownership of the Company after the consummation of the Rights Offering assuming (i) 100% participation of Common Stock
holders in the Rights Offering, (ii) that no shareholder of the Company which or who is not subject to the lock-up agreements described in Section 4.05 of this Agreement has sold shares of Common Stock, (iii) giving effect to
restricted stock units which will have vested by February 2008, and (iv) no management stock options have been issued, exercised or forfeited. 
  

 4 

 (e) Except as disclosed in the SEC Filings, all of the issued shares of capital stock of
each subsidiary of the Company have been duly and validly authorized and issued, are fully paid and non-assessable and are owned directly or indirectly by the Company, free and clear of all pledges, claims, liens, charges, encumbrances, mortgages
and security interests of any kind or nature whatsoever, other than any of the foregoing resulting solely from the Recapitalization. 
 Section 2.03 Issuance of Shares. The Shares, upon payment therefor pursuant to and as contemplated by this Agreement, will be validly issued, fully paid and non-assessable, free and clear of all pledges, claims, liens, charges,
encumbrances, mortgages and security interests of any kind or nature whatsoever, other than any of the foregoing resulting solely from action by the holders of the Shares. The Shares will not be issued in violation of any statutory or contractual
preemptive or other rights of any stockholder of the Company. 
 Section 2.04 Authorization; Enforcement. The Company has,
subject to the authorization of the Certificate of Designation by or on behalf of the Board of Directors in accordance with Section 4.02 and the effectiveness of the Preferred Stock Amendments, all requisite corporate power and authority to
enter into, execute, deliver and perform its obligations under this Agreement, the Escrow Agreement, and the Certificate of Designation and to consummate the transactions contemplated hereby and thereby. This Agreement, the Escrow Agreement, and the
Certificate of Designation have been, or prior to Closing will be, duly authorized, executed and delivered by the Company, and, assuming due authorization, execution and delivery thereof by the other parties thereto, constitute the legal, valid and
binding obligations of the Company, enforceable against the Company in accordance with their terms, except (i) as the enforcement thereof may be limited by bankruptcy, insolvency (including, without limitation, all laws relating to fraudulent
transfers), reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally and except as enforcement thereof is subject to general principles of equity (regardless of whether enforcement is considered in a
proceeding in equity or at law) and (ii) the enforceability of rights to indemnification and contribution under this Agreement may be limited by federal or state securities laws. 
 Section 2.05 Recapitalization. The Company has, subject to the authorization of the Certificate of Designation by or on behalf of the Board
of Directors in accordance with Section 4.02 and the effectiveness of the Preferred Stock Amendments, all requisite corporate power and authority to consummate the Recapitalization, and to enter into, execute, deliver and perform its
obligations under the Recapitalization Documents and to consummate the transactions contemplated thereby. Each of the Recapitalization Documents will be duly authorized, executed and delivered by the Company and, assuming due authorization,
execution and delivery thereof by the other parties thereto, will constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their terms, except as the enforcement thereof may be limited by
bankruptcy, insolvency (including, without limitation, all laws relating to fraudulent transfers), reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally and except as enforcement thereof is subject to
general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law). The Recapitalization will occur concurrently with the Closing and the purchase by the Purchasers of the Shares hereunder. 

 

 5 

 For purposes of this Agreement, the term “Recapitalization Documents” means all
agreements and instruments to be executed by the Company in order to effect the Recapitalization and related transactions. 
 Section 2.06 Absence of Changes. Except as disclosed in the SEC Filings and except as contemplated by this Agreement and the Recapitalization Documents, since December 31, 2006, the Company and its subsidiaries have
conducted their respective businesses only in the ordinary course consistent with past practice, and there has not been any event that has had, or would reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 Section 2.07 Compliance with Laws. Except as expressly disclosed in the SEC Filings: 
 (a) the Company and each of its subsidiaries are in compliance with all statutes, orders, rules and regulations of any court or
governmental agency or body having jurisdiction over the Company or such subsidiary in all respects, except to the extent that the failure to so comply has not had, and would not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect; 
 (b)(i) the Company and each of its subsidiaries have all licenses, permits, orders or approvals of
any Governmental Entity (collectively, “Permits”) that are material to or necessary for the conduct of the business of the Company in the manner described in the SEC Filings, except to the extent that the failure to have such
Permits has not had, and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (ii) such Permits are in full force and effect and (iii) no violations exist with respect to any Permit, except
to the extent that any such violation has not had, and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; and 
 (c) neither the Company nor any of its subsidiaries is a party to any written agreement, consent decree or memorandum of understanding
with, or a party to any commitment letter or similar undertaking to, or is subject to any cease-and-desist or other order or directive by, or has adopted any policies, procedures or board resolutions at the request of, any Governmental Entity which
restricts materially the conduct of the business of the Company and its subsidiaries, taken as a whole, nor has the Company or any subsidiary been advised in writing by any Governmental Entity that it is contemplating any such undertakings.

 Section 2.08 No Conflicts; Consents. (a) None of the execution, delivery and performance of this Agreement, the Escrow
Agreement and the Recapitalization Documents by the Company, including the compliance by the Company with all of the provisions hereof and thereof and the consummation of the transactions contemplated hereby and thereby in accordance with the terms
of this Agreement, will conflict with or result in a breach or violation of any of the terms or provisions of, or (with the giving of notice or the lapse of time or both) 

  

 6 

 
constitute a default under, (i) any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company or any of
its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or any of its subsidiaries is subject, (ii) the provisions of the charter, by-laws or other
organizational documents of the Company or any of its subsidiaries or (iii) any statute or any order, rule or regulation of any court or governmental agency or body having jurisdiction over the Company or any of its subsidiaries or any of their
properties or assets, except for, in the case of clauses (i) and (iii), such conflicts, breaches, violations or defaults that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The
Recapitalization Documents shall be effective prior to the issuance and sale of the Shares. 
 (b) The Company is not required
to obtain any consent, approval, authorization or order of, or make any filing or registration with, any governmental entity, including any Federal, state or local government or any court, administrative agency or commission or other governmental or
regulatory authority or agency (each, a “Governmental Entity”), in connection with the execution, delivery and performance of this Agreement, the Escrow Agreement, the Recapitalization Documents and the Rights Offering by the
Company, including the compliance by the Company with all of the provisions hereof and thereof and the consummation of the transactions contemplated hereby and thereby, except for (i) the registration under the Securities Act of 1933, as
amended (the “Securities Act”), of the issuance of the Rights and the Shares pursuant to the Exercise of Rights, (ii) the filing with the Securities and Exchange Commission (the “SEC”) of such reports under the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), as may be required in connection with this Agreement, the Escrow Agreement and the Recapitalization and the transactions contemplated hereby and thereby,
(iii) any filings required under applicable state securities rules and regulations, (iv) the filing of one or more notices on Form D under the Securities Act, (v) consents, approvals, authorizations, registrations, declarations and
filings of or with state public service or public utility commissions or other similar state Governmental Entities with jurisdiction to regulate the business operations of the Company and its subsidiaries, (vi) the filing of amendments to the
certificates of designation of the Series A Preferred Stock and the Series B Preferred Stock as needed to implement the transactions contemplated by this Agreement (the “Preferred Stock Amendments”), the filing of a certificate of
elimination with respect to the Series C Preferred Stock, and the authorization and filing of the Certificate of Designation relating to the Shares with the Secretary of State of the State of Delaware, (vii) the filing of such documents as may
be necessary to record or perfect or to terminate security interests or mortgages in personal or real property in connection with the incurrence and repayment by the Company and its subsidiaries of indebtedness in connection with the
Recapitalization, and (viii) such other consents, approvals, orders, authorizations, registrations, declarations and filings, the failure of which to be obtained or made, individually or in the aggregate, would not reasonably be expected to
(A) have a Material Adverse Effect, (B) impair in any material respect the ability of the Company to perform its obligations under this Agreement and the Recapitalization Documents or (C) prevent or materially impede, interfere with,
hinder or delay the consummation of the transactions contemplated by this Agreement and the Escrow Agreement. 
  

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 Section 2.09 No Violation. Neither the Company nor any of its subsidiaries (i) is in
violation of its charter, by-laws or other organizational documents, (ii) is in default in any respect, and no event has occurred which (with the giving of notice or the lapse of time or both) would constitute such a default, in the due
performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which it is a party or by which it is bound or to which any of its properties or
assets is subject or (iii) is in violation in any respect of any law, ordinance, governmental rule, regulation or court decree to which it or its property or assets may be subject, except for, in the case of clauses (ii) and (iii),
such defaults or violations as have not had, and would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
 Section 2.10 Legal and Governmental Proceedings. Except as otherwise disclosed in the SEC Filings or as previously disclosed to the Purchasers in writing, there are no suits, actions, investigations or
proceedings (whether judicial, arbitral, administrative or other) pending or, to the knowledge of the Company, threatened, against or affecting the Company or any of its subsidiaries that, individually or in the aggregate, have had or would
reasonably be expected to have a Material Adverse Effect, nor are there any judgments, decrees, injunctions, rules or orders of any Governmental Entity outstanding against the Company or any of its subsidiaries that have had or would reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect. 
 Section 2.11 Investment Company. The Company is
not and, after giving effect to the offering and sale of the Securities, will not be, an “investment company,” as such term is defined in the Investment Company Act of 1940, as amended. 
 Section 2.12 Full Disclosure. Since January 1, 2006, the Company has filed all reports, schedules, forms, statements and other documents
(including exhibits and other information incorporated therein) required to be filed by the Company with the SEC pursuant to the Exchange Act (the “SEC Filings”). As of their respective dates, each of the SEC Filings complied in all
material respects with the requirements of the Securities Act or the Exchange Act, as the case may be, and the rules and regulations of the SEC promulgated thereunder applicable to such SEC Filings, and none of the SEC Filings at the time it was
filed contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not
misleading, except to the extent corrected by a subsequently filed SEC Filing. 
 Section 2.13 Financial Statements; Books and
Records. (a) The audited financial statements and unaudited interim financial statements of the Company included or incorporated by reference in SEC Filings have been prepared in accordance with generally accepted accounting principles of
the United States (“GAAP”) (except as may be indicated in the notes thereto or, in the case of the unaudited statements, as permitted by Form 10-Q), complied as of their respective dates in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto, and fairly present, in all material respects, the financial position of the Company as of the dates thereof and the results of operations for the
periods then ended (subject, in the case of any unaudited interim financial statements, to the absence of footnotes required by GAAP and normal year-end adjustments). 
  

 8 

 (b) The Company has no liabilities of any kind whatsoever, whether accrued, contingent,
absolute, determined, determinable or otherwise, other than (i) liabilities to the extent disclosed or provided for in the most recent financial statements of the Company or set forth in the notes thereto, (ii) liabilities disclosed in the
SEC Filings, (iii) liabilities under this Agreement and the Recapitalization Documents, or (iv) liabilities incurred in the ordinary course of business since the date of the most recent financial statements disclosed in the SEC Filings
that would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 (c) The Company
has complied, in all material respects, with the provisions of the Sarbanes-Oxley Act of 2002 applicable to it. The Company (i) makes and keeps accurate books and records and (ii) maintains a system of internal accounting controls
sufficient to provide reasonable assurance that (A) transactions are executed in accordance with management’s general or specific authorization; (B) transactions are recorded as necessary to permit preparation of financial statements
in conformity with generally accepted accounting principles and to maintain accountability for assets; (C) access to assets is permitted only in accordance with management’s general or specific authorization; and (D) the recorded
accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company has disclosure controls and procedures (as defined in Rules 13a-14 and 15d-14 under the
Exchange Act) that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in
the SEC’s rules and forms, and is accumulated and communicated to the Company’s management, including its principal executive officer or officers and principal financial officer or officers, as appropriate, to allow timely decisions
regarding disclosure. There is no transaction, arrangement, or other relationship between the Company and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its Exchange Act filings and is not so
disclosed. 
 Section 2.14 Taxes. (a) Except where the failure to file or pay or the existence of outstanding agreements,
waivers, disputes, claims, audits or examinations could not reasonably be expected to have a Material Adverse Effect, the Company has filed or caused to be filed all Federal Tax Returns, and all material state, local and foreign tax returns or
materials required to have been filed by it and has paid or caused to be paid all Taxes due and payable by it and all assessments received by it, except taxes that are being contested in good faith by appropriate proceedings and for which the
Company shall have set aside on its books adequate reserves in accordance with GAAP. 
 (b) For purposes of this Agreement,
“Tax” shall mean all forms of taxation or duties imposed, or required to be collected or withheld, including charges, 

  

 9 

 
together with any related interest, penalties or other additional amounts, and “Tax Return” shall mean any return, filing, report,
questionnaire, information statement or other document required to be filed, including any amendments that may be filed, for any taxable period with any taxing authority (whether or not a payment is required to be made with respect to such filing).

 Section 2.15 Title to Properties. Except as described in the SEC Filings filed with the SEC prior to the date of this
Agreement, the Company has sufficient title to all material properties (real and personal) owned by the Company that are necessary for the conduct of the business of the Company as described in the SEC Filings filed with the SEC prior to the date of
this Agreement and as currently conducted, except (i) for minor defects in title that do not interfere with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes, (ii) for
assets disposed of as otherwise permitted under the Recapitalization Documents, or (iii) as could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. All such material properties are free and clear
of any encumbrance, other than any encumbrance permitted under the Recapitalization Documents. All material properties held under lease by the Company are held under valid, subsisting and enforceable leases. The Company enjoys peaceful and
undisturbed possession under all such material leases, except in each case as could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
 Section 2.16 Intellectual Property. The Company owns or possesses sufficient rights to use all material trademarks, copyrights, licenses,
inventions, trade names and know-how (including trade secrets and other unpatented and/or unpatentable property or confidential information, systems, processes or procedures) (collectively, “Intellectual Property”) necessary for its
business as presently conducted without any material conflict or material infringement of the intellectual property rights of others. To the knowledge of the Company, the Company has not materially infringed upon or otherwise materially violated the
intellectual property rights of any third party. The Company has not received and there is not currently pending any claim, charge, demand, notice or other communication alleging that the Company has violated or, by conducting its business as
proposed, would violate any intellectual property rights of any other person or entity, other than claims, charges, demands, notices or other communications that have not had, and would not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect. All of the Company’s Intellectual Property is owned or licensed by the Company, free and clear of all encumbrances and (to the extent owned) is held in the Company’s name. The execution or delivery of
this Agreement, or the carrying on of the Company’s business by the employees of the Company, will not conflict with or result in a breach of the terms, conditions, or provisions of, or constitute a default under, any contract, covenant or
instrument related to the Intellectual Property, except for any such conflict, breach or default that would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. The Company has taken all actions reasonably
necessary and desirable to maintain and protect each material item of Intellectual Property owned by the Company. 
 Section 2.17
Environmental Matters. Except as otherwise disclosed in the SEC Filings, the Company and its subsidiaries (i) are and have been in compliance in all material respects with all applicable Federal, state and local laws, common law,
regulations and codes, as well as orders, decrees, judgments or injunctions issued, promulgated, approved or entered 

  

 10 

 
thereunder relating to pollution, protection of the environment or public health (collectively, “Environmental Laws”), and no material
expenditures are or, to the knowledge of the Company, will be required in order to comply with any applicable Environmental Laws, (ii) have received and are in material compliance with all permits, licenses, certificates or other authorizations
or approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) have not received written notice of any actual or potential liability under or relating to any Environmental Laws, including for
the investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminant. There is no civil, criminal or administrative judgment, action, suit, demand, claim, hearing, notice of violation,
investigation, proceeding, notice or demand letter pending or to the knowledge of the Company, threatened against the Company pursuant to Environmental Laws which would reasonably be expected to result in a material fine, penalty, cost or expense.
To the knowledge of the Company, there are no past, present or, reasonably anticipated events, conditions, circumstances, activities, practices, incidents, agreements, actions or plans that would reasonably be expected to give rise to any material
cost or material liability to the Company under Environmental Laws that would reasonably be expected to result in a Material Adverse Effect. 
 Section 2.18 Transactions with Affiliates. Except as disclosed in the SEC Filings, and as contemplated by the Recapitalization there are no material agreements, material contracts or other material arrangements between the
Company or any of its subsidiaries, on the one hand, and (i) any affiliate of the Company or any of its subsidiaries or (ii) any current or former director, officer, employee or consultant of the Company or any of its subsidiaries or of
any affiliate of the Company or any of its subsidiaries, on the other hand, that are required to be disclosed under Item 404 of Regulation S-K of the SEC. 
 Section 2.19 No Shareholder Vote Required. No vote by any holders of any class or series of capital stock of the Company or any of its subsidiaries is necessary to approve the execution, delivery and
performance of this Agreement, the Escrow Agreement and the Recapitalization Documents by the Company and the consummation of the transactions contemplated hereby and thereby, except for the approval of the Preferred Stock Amendments by the holders
of the Series A Preferred Stock and the Series B Preferred Stock. 
 Section 2.20 Securities Act. Subject to the accuracy of the
representations and warranties of the Purchasers contained herein, it is not necessary in connection with the offer, sale and delivery of the Shares in the manner contemplated by this Agreement the Purchasers to register the Shares under the
Securities Act. 
 Section 2.21 General Solicitation. Within the preceding six months, other than pursuant to an effective
registration statement on Form S-8 with respect to the Company’s Amended and Restated Stock Incentive Plan, neither the Company, any affiliate of the Company nor any person acting on its or their behalf has sold any shares of Common Stock by
means of any general solicitation or general advertising within the meaning of Rule 502(c) under the Securities Act or offered or sold any shares of Common Stock outside the United States to non-U.S. persons (as defined in Rule 902 under
the Securities Act). 
 Section 2.22 Integration. Within the preceding six months, neither the Company nor any other person
acting on behalf of the Company has sold to any 

  

 11 

 
person any shares of Common Stock or any securities of the same or a similar class as the Common Stock, other than the Shares offered or sold to the
Purchasers hereunder or pursuant to the Recapitalization and other than pursuant to an effective registration statement on Form S-8 with respect to the Company’s Amended and Restated Stock Incentive Plan. The Company will take reasonable
precautions designed to ensure that any offer or sale, direct or indirect, of any shares of Common Stock or any substantially similar security issued by the Company, within six months subsequent to the Closing Date, is made under restrictions and
other circumstances reasonably designed not to affect the status of the offer and sale of the Shares contemplated by this Agreement as transactions exempt from the registration provisions of the Securities Act. 
 Section 2.23 Solvency. The Company (both before and immediately after giving effect to the Closing and the Recapitalization) is solvent
(i.e., its assets have a fair market value in excess of the amount required to pay its probable liabilities on its existing debts as they become absolute and matured) and currently the Company has no information that would lead it to reasonably
conclude that the Company would not have the ability to, nor does it intend to take any action that would impair its ability to, pay its debts from time to time incurred in connection therewith as such debts mature. The Company did not receive a
qualified opinion from its auditors with respect to its most recent fiscal year end and does not anticipate or know of any basis upon which its auditors might issue a qualified opinion in respect of its current fiscal year. 
 Section 2.24 No Brokers. No broker, finder, commission agent or other person is entitled to be paid by the Company any broker’s fee or
commission in connection with the sale of the Shares and the transactions contemplated by this Agreement other than Miller Buckfire & Co., LLC and Imperial Capital. 
 ARTICLE III 
 Representations and Warranties of the Purchasers 
 Each Purchaser, severally and not jointly, hereby represents and warrants to, and agrees with the Company that: 
 Section 3.01 Organization; Authorization; Enforcement. Such Purchaser is an entity validly existing and in good standing under the laws of its
jurisdiction of formation and has the requisite power and authority to carry on its business as it is now being conducted. This Agreement and the Escrow Agreement have been duly and validly authorized, executed and delivered by such Purchaser, and,
assuming the due authorization, execution and delivery thereof by the Company, constitute valid and binding agreements of such Purchaser, enforceable against such Purchaser in accordance with their terms, except (i) as the enforcement thereof
may be limited by bankruptcy, insolvency (including, without limitation, all laws relating to fraudulent transfers), reorganization, moratorium or similar laws affecting enforcement of creditors’ rights generally and except as enforcement
thereof is subject to general principles of equity (regardless of whether enforcement is considered in a proceeding in equity or at law) and (ii) the enforceability of rights to indemnification and contribution under this Agreement may be
limited by federal or state securities laws. 
  

 12 

 Section 3.02 Compliance with Securities Act. Such Purchaser understands and acknowledges that
the offering, issuance, sale and delivery of the Shares to the Purchasers as contemplated by this Agreement are exempt from the registration requirements of the Securities Act and that the Securities purchased by such Purchaser will be
“restricted securities” as defined in Rule 144(a)(3) under the Securities Act. So long as the Securities purchased are restricted securities, such Purchaser will offer and sell the Securities in any subsequent disposition only
(i) pursuant to an effective registration statement under the Securities Act or (ii) under a valid exemption from the registration requirements of the Securities Act; provided, however, that by making the representations
herein, such Purchaser does not agree to hold any Shares for any minimum or other specific term and reserves the right to dispose of the Shares at any time in accordance with or pursuant to a registration statement or an exemption under the
Securities Act. 
 Section 3.03 QIB and Accredited Investor Status. Such Purchaser is (i) a “qualified institutional
buyer” as defined in Rule 144A under the Securities Act (a “QIB”) or (ii) an “accredited investor” as defined in Rule 501(a)(1), (2), (3), (7) or (8) under the Securities Act. Such Purchaser understands
and acknowledges that the Company is relying on such Purchaser’s status as a QIB or an “accredited investor” in order for the offer and sale of the Shares to be exempt from the registration requirements of the Securities Act.

 Section 3.04 Reliance on Exemptions. Such Purchaser understands and acknowledges that the Shares are being offered and sold to
the Purchasers in reliance upon specific exemptions from the registration requirements of Federal and state securities laws and that the Company is relying upon the truth and accuracy of, and such Purchaser’s compliance with, the
representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth in this Article III in order to determine the availability of such exemptions and the eligibility of such Purchaser to acquire the Securities.

 Section 3.05 Legends. Such Purchaser understands and acknowledges that the Shares (until such time as such Shares have been
registered for public resale thereof under the Securities Act or converted into shares of Common Stock as contemplated by the Rights Offering, or otherwise may be sold by such Purchaser pursuant to Rule 144 without any restriction as to the public
resale thereof), subject to the immediately following paragraph, shall bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Shares): 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”). THE
SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT PURPOSES ONLY AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT AND ANY APPLICABLE
STATE SECURITIES LAW, (B) AN OPINION OF COUNSEL, IN FORM, SUBSTANCE AND SCOPE REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAW OR (C) RULE 144 UNDER THE
SECURITIES ACT. 
  

 13 

 The conditions to any offer, sale, pledge or other transfer of the Shares as set forth in the legend
above are incorporated in, and form a part of, this Agreement. The legend set forth above shall be removed and the Company shall issue a certificate representing any Share without such legend to the holder of such Share upon which it is stamped, if,
unless otherwise required by state securities laws, (i) such Share is sold pursuant to an effective registration statement under the Securities Act, (ii) such holder provides the Company with an opinion of counsel, in form, substance and
scope reasonably acceptable to the Company, to the effect that a public sale or transfer of such Share may be made without registration under the Securities Act or (iii) such holder provides the Company with reasonable assurances that such
Share and all other Shares then held by such holder may be sold pursuant to Rule 144(k) under the Securities Act or pursuant to Rule 144 under the Securities Act within any three-month period. 
 Section 3.06 Brokers. Such Purchaser has dealt with no broker, finder, commission agent or other person in connection with the purchase of
the Shares and the transactions contemplated by this Agreement, and such Purchaser is under no obligation to pay any broker’s fee or commission in connection with such transactions except for a fee to Imperial Capital which is being paid by the
Company. 
 Section 3.07 Own Account. Such Purchaser is acquiring the Shares as principal for its own account and is acquiring
the Shares in the ordinary course of its business. Except for participating in the Rights Offering, such Purchaser is not purchasing the Shares with a view toward, or for resale in connection with, any distribution (as that term is used in the
Securities Act and the rules and regulations thereunder) of all or any portion thereof in violation of the Securities Act or any applicable state securities laws. 
 Section 3.08 Experience of Purchaser. (a) Such Purchaser has had access to the SEC Filings, has undertaken its own due diligence with respect to the Company and the Common Stock and has (i) made
such investigation with respect thereto as it has deemed necessary to make its investment decision and (ii) made its own assessment and has satisfied itself concerning the relevant tax, legal and other economic considerations relevant to its
investment in the Shares. Such Purchaser, either alone or together with its representatives and advisors, has the knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of
the investment in the Shares, has so evaluated the merits and risks of such investment and is able to bear the economic risk of such investment. 
 (b) Such Purchaser has not relied on the Company or any of its affiliates or any person acting on its behalf in connection with its analysis or decision to purchase the Shares, except for the representations and
warranties of the Company set forth in this Agreement. Such Purchaser understands, acknowledges and agrees that none of the Company or any of its respective affiliates, directors, officers, employees, agents, advisors, attorneys or representatives
has made any representation or warranty, either express or implied, with respect to the Company or the Shares, or the accuracy or completeness of any of the information furnished by or on behalf of any of them to such Purchaser in connection with
its acquisition of the Shares, except for the representations and warranties of the Company set forth in this Agreement. 
  

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 Section 3.09 Availability of Funds. Such Purchaser has adequate funds immediately available
to satisfy all of its obligations hereunder and is transferring such funds to the Escrow Agent simultaneously with the execution of this Agreement. 
 Section 3.10 Majority of Purchasers. For purposes of this Agreement, a “Majority of Purchasers” shall mean those Purchasers whose Aggregate Purchase Prices equal or exceed 20, 610, 751. 
 Section 3.11 Shares. For purposes of this Article III, the reference to “Shares” shall mean both the Shares of Series H 6%
Convertible Redeemable Preferred Stock and the shares of Common Stock into which such Shares are convertible. 
 ARTICLE IV 
 Covenants 
 Section 4.01
Rights Offering. (a) On the terms and subject to the conditions set forth herein, the Company will distribute, at no charge, to each holder of record of Common Stock (each an “Eligible Holder”) as of the close of business on
an applicable record date as determined by the Company’s Board of Directors (the “Record Date”), Rights to purchase shares of Common Stock (the “Rights Offering Shares”) at the Common Stock Per Share Purchase
Price. Each Eligible Holder shall receive Rights to purchase Rights Offering Shares at the Subscription Ratio which shall be finalized not later than five (5) Business Days prior to the Rights Offering Commencement Date for each share of Common
Stock held by such holder as of the Record Date, provided that no fractional shares will be issued and the Common Stock Per Share Purchase Price multiplied by the aggregate number of Rights Offering Shares offered shall not exceed $41,221,500 (the
“Aggregate Offering Amount”). Each such Right shall be non-transferable. 
 (b) The Rights may be exercised
during a period (the “Rights Exercise Period”) commencing on the date on which Rights are issued to Eligible Holders (the “Rights Offering Commencement Date”) and ending at 5:00 p.m. Eastern Daylight Time on a
Business Day that shall not be less than twenty (20) Business Days after the Rights Offering Commencement Date, subject to extension at the reasonable discretion of the Board of Directors, provided, however, that the Rights
Exercise Period shall not be more than thirty (30) Business Days without the prior written consent of the Majority of Purchasers (the date on which such period ends, the “Expiration Time”). “Business Day” means
each Monday, Tuesday, Wednesday, Thursday and Friday that is not a day on which banking institutions in New York City are generally authorized or obligated by law or executive order to close. 
 (c) Each Eligible Holder who wishes to exercise all or a portion of its Rights shall (i) during the Rights Exercise Period return a
duly executed document to a subscription agent (the “Subscription Agent”) electing to exercise all or a portion of the Rights held by such Eligible Holder and (ii) pay an amount equal to the full Common 

  

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Stock Per Share Purchase Price of the number of Rights Offering Shares that the Eligible Holder elects to purchase pursuant to the instructions set forth in
the Rights Offering Registration Statement by a specified date to an escrow account established for the Rights Offering pursuant to the terms of an escrow agreement reasonably acceptable to the Majority of Purchasers. On the Rights Offering Closing
Date, the Subscription Agent will issue to each Eligible Holder who validly exercised its Rights the number of Rights Offering Shares to which such Eligible Holder is entitled based on such exercise. 
 (d) The Company will pay all of its expenses associated with the Rights Offering Registration Statement, and the Rights Offering,
including, without limitation, filing and printing fees, fees and expenses of any subscription and information agents, its counsel and accounting fees and expenses, costs associated with clearing the shares of Common Stock for sale under applicable
state securities laws and listing fees. 
 (e) The Company shall notify, or cause the Subscription Agent to notify the
Purchasers, on each Friday during the Rights Exercise Period and on each Business Day during the five Business Days prior to the Expiration Time (and any extensions thereto), or more frequently if reasonably requested by the Purchasers, of the
aggregate number of Rights known by the Company or the Subscription Agent to have been exercised pursuant to the Rights Offering as of the close of business on the preceding Business Day or the most recent practicable time before such request, as
the case may be. 
 (f) The Company hereby agrees and undertakes to give the Purchasers by electronic facsimile transmission
the certification by an executive officer of the Company of the number of Rights Offering Shares elected to be purchased by Eligible Holders pursuant to validly exercised Rights, the aggregate purchase price therefore at the Common Stock Per Share
Purchase Price, the number of Rights Offering Shares issuable pursuant to the aggregate number of Rights that were not properly exercised by the Eligible Holders thereof during the Rights Offering (the “Unsubscribed Shares”), if
any, the number of shares of Common Stock into which unredeemed Shares will be converted and the amount of cash proceeds which will be used to redeem certain Shares as set forth in the Certificate of Designation (a “Satisfaction
Notice”) as soon as reasonably practicable and, in any event, within two (2) Business Days after the Expiration Time. 
 (g) In accordance with the Certificate of Designation, the Company shall, four (4) Business Days after the expiration of the Rights Offering, use the cash proceeds from the Rights Offering to redeem such number of Shares as may be
redeemed at the Liquidation Preference (as such term is defined in the Certificate of Designation) using only such proceeds. All Shares outstanding after such redemption shall be converted into Common Stock as set forth in the Certificate of
Designation. 
  

 16 

 (h) The closing of the purchase of the Rights Offering Shares to be purchased in the
Rights Offering, the redemption for cash of the Shares using the cash proceeds received from subscribers in the Rights Offering, the payment of accrued but unpaid dividends and the mandatory conversion of the unredeemed Shares into shares of Common
Stock, will occur at 10:00 a.m., New York City time, on the fourth (4th) Business Day following the Expiration Time (the “Rights Offer Closing Date”), in the manner, and on the terms and conditions of the Rights Offering as
will be set forth in the Rights Offering Registration Statement and the Certificate of Designation for the Shares. Delivery of the cash redemption price and the shares of Common Stock will be made by the Company to the account of the Purchaser (or
to such other accounts, as the Purchaser may designate in accordance with this Agreement). 
 Section 4.02 Authorization. Prior
to Closing, the Board of Directors (or a duly-authorized committee thereof) shall authorize the Certificate of Designation and the issuance of the Shares. 
 Section 4.03 Rights Offering; Registration Statements. (a) As soon as reasonably practicable following the date of the Closing Date, but in no event more than 60 days following the Closing Date, the
Company shall prepare and file with the SEC a registration statement on Form S-1 relating to the offering of the Rights and the sale of shares of Common Stock pursuant to the exercise of the Rights (the “Rights Offering Registration
Statement”). 
 (b) The Company shall: (i) provide the Purchasers with a reasonable opportunity to review the
Rights Offering Registration Statement and any amendment thereto prior to its filing with the SEC and shall duly consider in good faith any comments of the Purchasers and the counsel; (ii) advise the Purchasers promptly of the time when the
Rights Offering Registration Statement has become effective or any Rights Offering Prospectus or Rights Offering Prospectus supplement has been filed and shall furnish the Purchasers with copies thereof; and (iii) advise the Purchasers promptly
after it receives notice of any comments or inquiries by the SEC (and furnish the Purchasers with copies of any correspondence related thereto), of the issuance by the SEC of any stop order or of any order preventing or suspending the use of the
Rights Offering Registration Statement, of the initiation or threatening of any proceeding for any such purpose, or of any request by the SEC for the amending or supplementing the Rights Offering Registration Statement or for additional information,
and in each such case, provide the Purchasers with a reasonable opportunity to review any such comments, inquiries, request or other communication from the SEC and to review any amendment or supplement to the Rights Offering Registration Statement
before any filing with the SEC, and to duly consider in good faith any comments consistent with this Agreement and any other reasonable comments of the Purchasers and their counsel and in the event of the issuance of any stop order or of any order
preventing or suspending the use of the Rights Offering Registration Statement or suspending any such qualification, to use promptly its reasonable best efforts to obtain its withdrawal. The Company’s obligation under this
Section 4.03(b) shall be satisfied if it provides all notices and makes all communication specified herein to a single counsel designated by the Majority of Purchasers. 
  

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 (c) The Company shall use its commercially reasonable best efforts to have the Rights
Offering Registration Statement declared effective by the SEC as soon as reasonably practicable after such filing. The Company shall take all action as may be necessary or advisable so that the Rights Offering and the issuance and sale of the Shares
and the other transactions contemplated by this Agreement will be effected in accordance with the applicable provisions of the Securities Act and the Exchange Act and any state or foreign securities or Blue Sky laws, provided that the Company
shall not be required to (i) qualify as a foreign corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (ii) file any general consent to service of process
in any such jurisdiction or (iii) subject itself to taxation in any such jurisdiction if it is not otherwise so subject. 
 (d) If at any time prior to the Expiration Time, any event occurs as a result of which the Investment Decision Package, as then amended or supplemented, would include an untrue statement of a material fact or omit to state any material fact
necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, or if it shall be necessary to amend or supplement the Investment Decision Package to comply with applicable law, the
Company will promptly notify the Purchasers of any such event and prepare an amendment or supplement to the Investment Decision Package that is reasonably acceptable in form and substance to the Purchasers that will correct such statement or
omission or effect such compliance. 
 (e) Rule 158. The Company will generally make available to the Company’s
security holders as soon as practicable an earnings statement of the Company covering a twelve-month period beginning after the date of this Agreement, which shall satisfy the provisions of Section 11(a) of the Securities Act. 
 (f) Rights Offering Registration Statement and Rights Offering Prospectus. The Rights Offering Registration Statement or any
post-effective amendment thereto, as of the Securities Act Effective Date, will comply in all material respects with the Securities Act, and will not contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not misleading; and as of the applicable filing date of the Rights Offering Prospectus and any amendment or supplement thereto and as of the Closing Date, the Rights Offering Prospectus will
not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. On the date
on which it is distributed and the Expiration Date, the Investment Decision Package will not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading. Each Issuer Free Writing Prospectus, at the time of use thereof, when considered together with the Investment Decision Package, will not contain an untrue 

  

 18 

 
statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading. Each Preliminary Rights Offering Prospectus, at the time of filing thereof, will comply in all material respects with the Securities Act and will not contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. Notwithstanding the foregoing, the Company makes
no representation and warranty with respect to any statements or omissions made in reliance on and in conformity with information relating to the Purchasers furnished to the Company in writing by the Purchasers expressly for use in the Rights
Offering Registration Statement and the Rights Offering Prospectus and any amendment or supplement thereto. 
 For the purposes of this Agreement,
(i) the term “Rights Offering Registration Statement” includes all related exhibits filed with the SEC and any post-effective amendment thereto that becomes effective; (ii) the term “Rights Offering
Prospectus” means the final prospectus contained in the Rights Offering Registration Statement at the Securities Act Effective Date (including information, if any, omitted pursuant to Rule 430A, 430B or 430C and subsequently provided
pursuant to Rule 424(b) under the Securities Act), and any amended form of such prospectus provided under Rule 424(b) under the Securities Act or contained in a post-effective amendment to the Rights Offering Registration Statement; (iii) the
term “Investment Decision Package” means the Rights Offering Prospectus, together with any Issuer Free Writing Prospectus used by the Company to offer the shares of Common Stock to Eligible Holders pursuant to the Rights Offering,
(iv) the term “Issuer Free Writing Prospectus” means each “issuer free writing prospectus” (as defined in Rule 433 of the rules promulgated under the Securities Act) prepared by or on behalf of the Company or used or
referred to by the Company in connection with the Rights Offering, (v) the term “Preliminary Rights Offering Prospectus” means each prospectus included in the Rights Offering Registration Statement (and any amendments thereto)
before it becomes effective, any prospectus filed with the Commission pursuant to Rule 424(a) under the Securities Act and the prospectus included in the Rights Offering Registration Statement, at the time of effectiveness that omits information
permitted to be excluded under Rule 430A, 430B or 430C under the Securities Act; and (vi) “Securities Act Effective Date” means the date and time as of which the Rights Offering Registration Statement, or the most recent
post-effective amendment thereto, was declared effective by the Commission. 
 (g) Free Writing Prospectuses. Each
Issuer Free Writing Prospectus will conform in all material respects to the requirements of the Securities Act as of the date of first use or as otherwise provided for in Rule 433 under the Securities Act, and the Company will comply with all
prospectus delivery and all filing requirements applicable to such Issuer Free Writing Prospectus under the Securities Act. The Company has retained in accordance with the Securities Act all Issuer Free Writing Prospectuses that were not required to
be filed pursuant to the Securities Act. 
  

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 (h) No Stabilization. The Company will not take, directly or indirectly, any
action designed to or that would reasonably be expected to cause or result in any stabilization or manipulation of the price of the Shares. 
 Section 4.04 Reporting Status. The Company’s Common Stock is registered under Section 12(g) of the Exchange Act. The Company shall use commercially reasonable efforts to timely file with the SEC all reports and other
information under the Exchange Act so long as it is an issuer required to file reports and such information under the Exchange Act. 
 Section 4.05 Company Lock-Up. (a) Except in connection with the Recapitalization, until the earlier of (i) the Rights Offering Closing Date and (ii) January 31, 2008, or as extended by mutual agreement
between the Company and the Majority of Purchasers (the “Lock-Up Period”), the Company will not offer, sell, contract to sell, pledge or otherwise dispose of, directly or indirectly, or file with the SEC a registration statement
(other than a registration on Form S-8) under the Securities Act relating to, any additional shares of Common Stock or securities convertible into or exchangeable or exercisable for any shares of Common Stock, or publicly disclose the intention to
make any such offer, sale, pledge, disposition or filing, without the prior written consent of the Majority of Purchasers, except (A) pursuant to the transactions contemplated by the Recapitalization Rights Offering Registration Statement and
(B) with respect to stock options, restricted stock, restricted stock units or any and all other awards that are authorized under the Stock Incentive Plans, or the issuance of any shares of Common Stock upon the exercise, conversion, vesting or
settlement of any stock option, restricted stock, restricted stock unit or other award outstanding under the Stock Incentive Plans or the Series A Warrants. The Company will not issue shares of Common Stock in exchange for Existing Third Lien Notes
(as defined in Exhibit A hereto) unless the holder thereof executes a “lock-up” agreement (in a form reasonably acceptable to the Majority of Purchasers) substantially similar to the Stockholder Lock-Up Agreements. In addition, during the
Lock-Up Period the Company will not sell any material assets other than in the ordinary course of business. 
 (b)
Simultaneously with the execution of this Agreement, the Company will obtain agreements (in a form reasonably acceptable to the Majority of Purchasers) from all holders of common stock affiliated with Welsh Carson Andersen & Stove VIII,
L.P. and Tennenbaum Capital Partners, LLC and certain members of senior management in which they will agree to (i) a “lock-up” provision for the Lock-Up Period, (ii) not seek to exercise registration rights during the Lock-Up
Period, and (iii) not exercise pre-emptive rights, both as stockholders of the Company and pursuant to Section 3.04 or any other provision of the Amended and Restated Governance Agreement, dated as of July 26, 2005, as amended, among
the Company and the securityholders of the Company listed on the signature pages thereof, with respect to the Rights Offering or otherwise subscribe for shares of Common Stock in the Rights Offering, (collectively, the “Stockholder Lock-Up
Agreements”). The Stockholder Lock-Up Agreements shall provide that Purchasers shall be third party beneficiaries thereunder. 
 Section 4.06 No Integration. The Company has not made and shall not make any offers or sales of any security (other than the Shares) under circumstances that would require registration of the Shares being offered or sold
hereunder under the Securities Act or cause the 

  

 20 

 
offering of the Shares to be integrated with any other offering of securities by the Company for the purpose of the federal securities law doctrine of
“integration,” or any shareholder approval provision applicable to the Company or its securities. 
 Section 4.07
Compliance with Laws. The Company shall maintain appropriate compliance policies and procedures designed to ensure that the Company and its subsidiaries comply with all applicable laws and regulations in all material respects. 
 Section 4.08 Publicity. Except as otherwise required by law (including the rules and regulations of the SEC), none of the parties hereto
shall issue any press release or make any other public statement, in each case relating to, connected with or arising out of this Agreement or the Purchasers’ interest in the Company or the matters contained herein or therein, without obtaining
the prior consent of the Majority of Purchasers and the Company, which consent shall not be unreasonably withheld. Except as otherwise required by law, no references to any Purchaser or any of its affiliates shall be made in any public statement
without such Purchaser’s or such affiliate’s prior consent. 
 Section 4.09 Fees and Expenses. The Company shall
reimburse the Purchasers from time to time upon presentation of reasonably detailed invoices for the reasonable and actual fees of their respective counsel and financial advisor, subject to an aggregate maximum of $1 million; provided that counsel
fees of any Purchaser paid or reimbursed by the Company pursuant to Section 7 of this Agreement shall not be so limited and will not count towards the above-stated maximum amount. 
 ARTICLE V 
 Section 5.01 Additional Covenants of the Purchasers. The
Purchasers agree with the Company: 
 (a) Information. To provide the Company with such information as the Company
reasonably requests regarding the Purchasers for inclusion in the Rights Offering Registration Statement; provided, however, that under no circumstances will any Purchaser be required to disclose any of its investors or portfolio
holdings except as required by law. 
 (b) Reasonable Best Efforts. The Purchasers shall use their reasonable best
efforts to take all actions, and do all things, reasonably necessary, proper or advisable on its part under this Agreement and applicable laws to cooperate with the Company and to consummate and make effective the transactions contemplated by this
Agreement, including executing, delivering and filing, as applicable, any additional ancillary instruments or agreements necessary to consummate the transactions contemplated by this Agreement and to fully carry out the purposes of this Agreement
and the transactions contemplated hereby and thereby, including: 
 (i) preparing and filing as soon as reasonably practicable
all documentation to effect all necessary notices, reports and other filings and to obtain as soon as reasonably practicable all consents, registrations, approvals, permits and authorizations necessary or advisable to be obtained from any third
party or governmental entity; 
  

 21 

 (ii) defending any lawsuits or other actions or proceedings, if any, to which the
Purchasers may be named a party, whether judicial or administrative, challenging this Agreement or any other agreement contemplated by this Agreement or the consummation of the transactions contemplated hereby and thereby, including seeking to have
any stay or temporary restraining order entered by any court or other governmental entity vacated or reversed; and 
 (iii)
executing, delivering and filing, as applicable, any additional ancillary instruments or agreements necessary to consummate the transactions contemplated by this Agreement and to fully carry out the purposes of this Agreement and the transactions
contemplated hereby. 
 (c) No Stabilization. The Purchasers will not take, directly or indirectly, any action designed
to or that would reasonably be expected to cause or result in any stabilization or manipulation of the price of the Shares. 
 (d) Confidentiality Agreements. The provisions of the several confidentiality agreements entered into between the Company and the Purchasers (the “Purchasers Confidentiality Agreements”) shall remain in effect.

 ARTICLE VI 
 Conditions To
The Obligations of The Parties 
 Section 6.01 Conditions to the Obligations of the Purchasers. The obligations of the
Purchasers hereunder to consummate the transactions contemplated hereby shall be subject to the satisfaction prior to the Closing Date of each of the following conditions (which may be waived in whole or in part by the Majority of Purchasers in
their sole discretion). 
 (a) Recapitalization. The Company shall have consummated simultaneously with the Closing the
other transactions contemplated by the Recapitalization without material modification. 
  

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 (b) No Legal Impediment to Issuance. The Board of Directors of the Company (or any
duly authorized committee thereof) shall have approved the Certificate of Designation and authorized the issuance of the Shares, and no action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued
by any federal, state or foreign governmental or regulatory authority, and no judgment, injunction, decree or order of any federal, state or foreign court shall have been issued, that prohibits the implementation of the Rights Offering or the
transactions contemplated by this Agreement. 
 (c) Good Standing. The Purchasers shall have received on and as of the
Closing Date satisfactory evidence of the good standing of the Company in its jurisdiction of organization, in writing or any standard form of telecommunication from the appropriate governmental authorities of such jurisdiction. 
 (d) Representations and Warranties. The representations and warranties of the Company contained in this Agreement shall be true and
correct as of the date hereof and as of the Closing Date after giving effect to the transactions contemplated hereby with the same effect as if made on and as of the Closing Date (except for representations and warranties made as of a specified
date, which shall be true and correct only as of the specified date), except where the failure to be so true and correct, individually or in the aggregate, has not had, and would not reasonably be expected to have, a Material Adverse Effect.

 (e) Covenants. The Company shall have performed and complied with all of its respective covenants and agreements
contained in this Agreement and in any other document delivered pursuant to this Agreement through the Closing Date. 
 (f)
Fees and Expenses. The Company shall have paid all fees, costs and expenses payable to the Purchasers as contemplated by Section 4.08. 
 (g) No Material Adverse Effect. Since the date of this Agreement, there shall not have occurred any changes or events that, individually or in the aggregate would reasonably be expected to result in a Material
Adverse Effect. 
 (h) Certificate of Officer. The Purchasers shall have received a certificate executed by the
Company’s Chief Executive Officer or other senior executive officer of the Company certifying that the conditions set forth in 6.01(b), (d), and (e) have been fulfilled. 
 (i) Stockholder Lock-Up Agreements. The Stockholder Lock-Up Agreements shall have been executed and delivered. 
  

 23 

 (j) Opinion of Counsel. The Purchasers shall have received an opinion of counsel
to the Company, in form reasonably satisfactory to the Majority of Purchasers, in respect of the transactions contemplated by this Agreement. 
 Section 6.02 Conditions to the Obligations of the Company. The obligation of the Company to issue and sell the Shares are subject to the following conditions (which may be waived in whole or in part by the Company in its sole
discretion): 
 (a) Authorization of Issuance; No Legal Impediment to Issuance. The Board of Directors of the Company
(or any duly authorized committee thereof) shall have approved the Certificate of Designation and authorized the issuance of the Shares, and no action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted
or issued by any federal, state or foreign governmental or regulatory authority, and no judgment, injunction, decree or order of any federal, state or foreign court shall have been issued, that prohibits the implementation of the Rights Offering or
the transactions contemplated by this Agreement. 
 (b) Representations and Warranties. The representations and
warranties of each Purchaser contained in this Agreement shall be true and correct as of the date hereof and as of the Closing Date with the same effect as if made on the Closing Date (except for the representations and warranties made as of a
specified date, which shall be true and correct only as such specified date), except where the failure to be so true and correct, individually or in the aggregate, has not and would not reasonably be expected, to prohibit, materially delay or
materially and adversely impact the Purchaser’s performance of its obligations under this Agreement. 
 (c)
Covenants. The Purchaser shall have performed and complied with all of its covenants and agreements contained in this Agreement and in any other document delivered pursuant to this Agreement through the Closing Date. 
 (d) Recapitalization. The Company shall have consummated the other transactions contemplated by the Recapitalization simultaneously
with the Closing without material modification. 
 ARTICLE VII 
 Indemnification and Contribution 
 Section 7.01 Whether or not the Rights Offering is
consummated or this Agreement is terminated, the Company (in such capacity, the “Indemnifying Party”) shall indemnify and hold harmless the Purchasers, their respective Affiliates and their respective officers, directors, employees,
agents and controlling persons (each, an “Indemnified Person”) from and against any and all losses, claims, damages, liabilities and reasonable expenses, joint or 

  

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several, arising out of circumstances existing on or prior to the Rights Offering Closing Date (“Losses”) to which any such Indemnified
Person may become subject arising out of or in connection with any claim, challenge, litigation, investigation or proceeding (“Proceedings”) instituted by a third party with respect to the Rights Offering, this Agreement, the Rights
Offering Registration Statement, any Preliminary Rights Offering Prospectus, the Rights Offering Prospectus, any Issuer Free Writing Prospectus, the Investment Decision Package, any amendment or supplement thereto or the transactions contemplated by
any of the foregoing and shall reimburse such Indemnified Persons for any reasonable legal or other reasonable out-of-pocket expenses incurred in connection with investigating, responding to or defending any of the foregoing; provided that the
foregoing indemnification will not apply to Losses to the extent that they resulted from (a) any breach by such Indemnified Person of this Agreement, (b) gross negligence or willful misconduct on the part of such Indemnified Person or
(c) statements or omissions in the Rights Offering Registration Statement, any Preliminary Rights Offering Prospectus, the Rights Offering Prospectus, any Issuer Free Writing Prospectus or any amendment or supplement thereto made in reliance
upon or in conformity with information relating to such Indemnified Person furnished to the Company in writing by or on behalf of such Indemnified Person expressly for use in the Rights Offering Registration Statement, any Rights Offering
Preliminary Prospectus, the Rights Offering Prospectus, any Issuer Free Writing Prospectus or any amendment or supplement thereto. If for any reason the foregoing indemnification is unavailable to any Indemnified Person (except as set forth in the
proviso to the immediately preceding section) or insufficient to hold it harmless, then the Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Person as a result of such Losses in such proportion as is appropriate
to reflect not only the relative benefits received by the Indemnifying Party on the one hand and such Indemnified Person on the other hand but also the relative fault of the Indemnifying Party on the one hand and such Indemnified Person on the other
hand as well as any relevant equitable considerations. It is hereby agreed that the relative benefits to the Indemnifying Party on the one hand and all Indemnified Persons on the other hand shall be deemed to be in the same proportion as
(i) the total value received or proposed to be received by the Company pursuant to the sale of the Shares contemplated by this Agreement bears to (ii) the cash proceeds paid to redeem the Shares. The indemnity, reimbursement and
contribution obligations of the Indemnifying Party under this Section 7 shall be in addition to any liability that the Indemnifying Party may otherwise have to an Indemnified Person and shall bind and inure to the benefit of any
successors, assigns, heirs and personal representatives of the Indemnifying Party and any Indemnified Person. 
 Section 7.02 Promptly
after receipt by an Indemnified Person of notice of the commencement of any Proceedings with respect to which the Indemnified Person may be entitled to indemnification hereunder, such Indemnified Person will, if a claim is to be made hereunder
against the Indemnifying Party in respect thereof, notify the Indemnifying Party in writing of the commencement thereof; provided that (i) the omission so to notify the Indemnifying Party will not relieve the Indemnifying Party from any
liability that it may have hereunder except to the extent it has been prejudiced by such failure and (ii) the omission so to notify the Indemnifying Party will not relieve it from any liability that it may have to an Indemnified Person
otherwise than on account of this Section 7. In case any such Proceedings are brought against any Indemnified Person and it notifies the Indemnifying Party of the commencement thereof, the Indemnifying Party will be entitled to
participate therein, and, to the extent that it may elect by written notice delivered to such Indemnified Person, to assume the 

  

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defense thereof, with counsel reasonably satisfactory to such Indemnified Person; provided that if the defendants in any such Proceedings include both such
Indemnified Person and the Indemnifying Party and such Indemnified Person shall have concluded that there may be legal defenses available to it that are different from or additional to those available to the Indemnifying Party, such Indemnified
Person shall have the right to select separate counsel, which selection shall be subject to the reasonable approval of the Indemnifying Party, to assert such legal defenses and to otherwise participate in the defense of such Proceedings on behalf of
such Indemnified Person. Upon receipt of notice from the Indemnifying Party to such Indemnified Person of its election so to assume the defense of such Proceedings and approval by such Indemnified Person of counsel, the Indemnifying Party shall not
be liable to such Indemnified Person for expenses incurred by such Indemnified Person in connection with the defense thereof (other than reasonable costs of investigation) unless (i) such Indemnified Person shall have employed separate counsel
in connection with the assertion of legal defenses in accordance with the proviso to the preceding sentence (it being understood, however, that the Indemnifying Party shall not be liable for the expenses of more than one separate counsel in any
jurisdiction, approved by the Investor (or the Principal Additional Investor if the Investor is not an Indemnified Person), representing the Indemnified Persons who are parties to such Proceedings), (ii) the Indemnifying Party shall not have
employed counsel reasonably satisfactory to such Indemnified Person to represent such Indemnified Person within a reasonable time after notice of commencement of the Proceedings or (iii) the Indemnifying Party shall have authorized in writing
the employment of counsel for such Indemnified Person. 
 Section 7.03 The Indemnifying Party shall not be liable for any settlement of
any Proceedings effected without its written consent (which consent shall not be unreasonably withheld). If any settlement of any Proceeding is consummated with the written consent of the Indemnifying Party or if there is a final judgment for the
plaintiff in any such Proceedings, the Indemnifying Party agrees to indemnify and hold harmless each Indemnified Person from and against any and all Losses by reason of such settlement or judgment in accordance with, and subject to the limitations
of, the provisions of this Section 7. The Indemnifying Party shall not, without the prior written consent of an Indemnified Person (which consent shall not be unreasonably withheld), effect any settlement of any pending or threatened
Proceedings in respect of which indemnity has been sought hereunder by such Indemnified Person unless (i) such settlement includes an unconditional release of such Indemnified Person in form and substance reasonably satisfactory to such
Indemnified Person from all liability on the claims that are the subject matter of such Proceedings and (ii) such settlement does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of any
Indemnified Person. 
 ARTICLE VIII 
 Termination 
 Section 8.01 Termination. This Agreement may be terminated and the transactions contemplated
hereby may be abandoned at any time prior to the Closing Date: 
 (a) by mutual written consent of the Company, on the one
hand, and the Majority of Purchasers, on the other hand; 
  

 26 

 (b) by the Company 
 (i) if there has been a breach of any covenant or a breach of any representation or warranty of the Purchasers, which breach would cause
the failure of any condition precedent set forth in Section 6.02, provided, that any such breach of a covenant or representation or warranty is not capable of cure on or prior to August 31, 2007; or 
 (ii) after August 31, 2007; provided that (1) the Closing Date has not occurred by such date and (2) the failure of the
closing to have occurred is not due to a breach of any covenant or a breach of any representation or warranty of the Company; 
 (c) by the Majority of Purchasers, 
 (i) if there has been a breach of any covenant or a breach of any
representation or warranty of the Company, which breach would cause the failure of any condition precedent set forth in Section 6.01, provided, that any such breach of a covenant or representation or warranty is not capable of cure on or
prior to August 31, 2007; or 
 (ii) after August 31, 2007; provided, that the Closing Date has not occurred by such
date and (2) the failure of the closing to have occurred is not due to a breach of any covenant or a breach of any representation or warranty of any of the Purchasers. 
 In addition, if this Agreement is terminated, the Company shall pay to the Purchasers any actual unpaid expenses as provided in
Section_4.08 hereof, unless this Agreement is terminated pursuant to Section 8.01(b)(i). 
 (d) Upon
termination under this Section 8.01, all rights and obligations of the parties under this Agreement shall terminate without any liability of any party to any other party except for the provisions in Section 5.01(d) and in Article
IX, all of which shall survive termination of this Agreement and all amounts paid by Purchasers to the Escrow Agent shall be promptly returned to Purchasers, together with accrued interest at the rate of 6% per annum; provided that nothing
contained herein shall release any party hereto from liability for any willful breach. 
  

 27 

 ARTICLE IX 
 Miscellaneous 
 Section 9.01 Surviving Provisions. The representations and warranties of
the Company and the Purchasers set forth in Articles II and III, the covenants contained in Article IV and the agreements and covenants set forth in Article VII and this Article IX shall survive the execution and delivery hereof and the Closing
hereunder through and including the Rights Offering Closing Date. 
 Section 9.02 Transfer Taxes. All transfer, documentary,
sales, use, stamp, registration, real estate transfer or gains and stock transfer Taxes incurred in connection with this Agreement and the transactions contemplated hereby shall be borne by the Company. 
 Section 9.03 Entire Agreement. This Agreement (including all schedules and exhibits hereto), the Escrow Agreement together with the Purchaser
Confidentiality Agreements constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to
herein and therein. This Agreement, the Escrow Agreement and the Purchaser Confidentiality Agreements supersede all prior agreements and understandings, whether written or oral, among the parties hereto with respect to the subject matter hereof and
thereof. 
 Section 9.04 Amendment and Waiver. This Agreement may not be amended or any provision hereof waived or modified
except by an instrument in writing signed on behalf of each of the Company and the Majority of Purchasers. 
 Section 9.05 Extension;
Waiver. At any time prior to the Rights Offering Closing Date, the Company for itself and the Majority of Purchasers for the Purchasers may (i) extend the time for the performance of any of the obligations or other acts of the other party,
(ii) waive any inaccuracies in the representations and warranties contained herein or in any document delivered pursuant hereto and (iii) waive compliance with any of the agreements or conditions contained herein. Any agreement on the part
of a party to any such extension or waiver shall be valid only if set forth in a written instrument signed on behalf of such party. The failure of any party to assert any of its rights under this Agreement or otherwise shall not constitute a waiver
of those rights nor shall any single or partial exercise by any party to this Agreement of any of its rights under this Agreement preclude any other or further exercise of such rights or any other rights under this Agreement. 
 Section 9.06 Notices. Any Notices required or permitted to be given under the terms hereof shall be sent by certified or registered mail
(return receipt requested) or delivered personally or by courier (including a recognized overnight delivery service) or by facsimile and shall be effective five days after being placed in the mail, if mailed by regular United States mail, or upon
receipt, if delivered personally or by courier (including a recognized overnight delivery service) or by facsimile, in each case addressed to a party. The addresses for such communications shall be: 
  

 28 

 If to the Company: 
 ITC^DeltaCom, Inc. 
 7037 Old Madison Pike 
 Huntsville, Alabama 35806 
 Attention: Richard E. Fish, Jr. 
 Facsimile: (256) 382-3935 
 with a copy to: 
 Skadden, Arps, Slate, Meagher & Flom LLP 
 Four Times Square 
 New York, NY 10036 
 Attention: J. Gregory Milmoe 
 Facsimile: (917) 777-3770 
 If to any Purchaser: 
 Joshua Tree Capital Management, LLC 
 One Maritime Plaza, Suite 750 
 San Francisco, CA 94111 
 Attention: Vikas Tandon 
 Facsimile: (415) 568-4268 
 H Partners LP 
 152 West 57th Street 
 52nd Floor 
 New York, NY 10019 
 Attention: Heather Broome 
 Facsimile: (212) 974-7181 
 Trace Partners, LP 
 104 Woodmont Boulevard, Suite 200, 
 Nashville, TN 37205 
 Attention: Mark Eberle 
 Facsimile: (615) 386-0412 
 With a copy to: 
 Kasowitz Benson Torres & Friedman LLP 
 1633 Broadway 
 New York, NY 10019 
 Attention: Michael D. Rosenbloom 
 Facsimile: (212) 506-1800 
 Section 9.07 Assignment. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned, in whole or in part, by either of the parties (whether by operation of law or otherwise) without the
prior written consent of the other party, and any such assignment that is not so consented to shall be null and void. 
  

 29 

 Section 9.08 Exhibits and Annexes; Interpretation. (a) The headings contained in this
Agreement and in any Exhibit hereto and in the table of contents to this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement. All Exhibits annexed hereto or referred to
herein are hereby incorporated in and made a part of this Agreement as if set forth in full herein. Any capitalized terms used in any Exhibit not otherwise defined therein shall have the meaning as defined in this Agreement. 
 (b) For all purposes hereof, (i) the words “include”, “includes”, “included” and “including”
shall be deemed to be followed by the phrase “without limitation” and (ii) “person” means any individual, firm, corporation, partnership, limited liability company, trust, joint venture, Governmental Entity or other entity.

 Section 9.09 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
DELAWARE WITHOUT GIVING EFFECT TO ANY PROVISIONS RELATING TO CONFLICTS OF LAW. 
 Section 9.10 WAIVER OF JURY TRIAL. EACH OF THE
PARTIES HERETO IRREVOCABLY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR COUNTERCLAIM BROUGHT BY OR ON BEHALF OF ANY PARTY RELATED TO OR ARISING OUT OF THIS AGREEMENT. 
 Section 9.11 Consent to Jurisdiction. Each of the parties hereto hereby irrevocably and unconditionally (a) submits, for itself and its
property, to the exclusive jurisdiction of any Delaware State court or Federal court of the United States of America sitting in Delaware, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the transactions contemplated hereby, and agrees that all claims in respect of any such action or proceeding may be heard and determined only in such Delaware State court or, to the extent permitted by law, in such Federal court,
(b) waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby in any Delaware State court or in any such Federal court, (c) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court, and
(d) agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Service of any process, summons, notice or document
by registered mail addressed to the Company at the address specified in Section 9.06 shall be effective service of process against the Company for any suit, action or proceeding brought in any such court. 
 Section 9.12 Specific Performance. Each of the parties recognizes that any breach of the terms of this Agreement may give rise to irreparable
harm for which money damages would not be an adequate remedy. Accordingly, each of the parties agrees that the 

  

 30 

 
other party shall be entitled to an injunction or injunctions to prevent breaches of the provisions of this Agreement and to enforce specifically this
Agreement and the terms and provisions hereof in any action instituted in any court of the United States or any state thereof having jurisdiction over the parties and the matter, in addition to any other remedy to which it may be entitled, at law or
in equity. 
 Section 9.13 Counterparts. This Agreement may be executed by any one or more of the parties hereto in any number of
counterparts, each of which shall be deemed to be an original, but all such respective counterparts shall together constitute one and the same instrument. Delivery of an executed counterpart of a signature page by facsimile transmission shall be
effective as delivery of a manually executed counterpart hereof. 
 Section 9.14 Further Assurances. Each party shall do and
perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the
intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby, including but not limited to making all required filings with governmental agencies or authorities. 
 Section 9.15 No Third Party Beneficiaries. This Agreement is for the sole benefit of the parties hereto and nothing herein expressed or
implied shall give or be construed to give to any person, other than the parties hereto, any legal or equitable rights hereunder. 
  

 31 

 IN WITNESS WHEREOF, the Company and the Purchasers have caused this Agreement to be duly executed as of
the date first written above. 
  

			
	 FOR THE COMPANY
     ITC^DELTACOM, INC.,

		
	by	 	 /s/ J. Thomas Mullis

	Name:	 	J. Thomas Mullis
	Title:	 	Sr. Vice President

			
	 FOR THE PURCHASERS
     H PARTNERS LP (Purchaser of 237,215 Shares)

	
	 /s/ Rehan Jaffer

	Name:	 	Rehan Jaffer
	Title:	 	Managing Member
	
	 JOSHUA TREE CAPITAL PARTNERS
 (Purchaser of 150,000 Shares)
  
 by: Joshua Tree Capital Management, LP, its General Partner
  
 by: Joshua Tree Capital Management, LLC, its General Partner

	
	 /s/ Vikas Tandon

	Name:	 	Vikas Tandon
	Title:	 	Managing Member
	
	 TRACE PARTNERS, LP (Purchaser of 25,000 Shares)
  
 by: Trace Management LLC, its General
Partner

		
	By:	 	 /s/ Mark Eberle

	Name:	 	Mark Eberle
	Title:	 	Managing Member
		
	By:	 	 /s/ Kevin Nowat

	Name:	 	Kevin Nowat
	Title:	 	Attorney-in-Fact

 EXHIBIT A 
 RECAPITALIZATION 
 The Company’s intended recapitalization of its capital structure
consists of the debt and equity financing arrangements set forth below. In addition to the arrangements described herein, the Recapitalization also contemplates the sale and issuance of the Company’s Series H 6% Convertible Redeemable Preferred
Stock as described more fully in the Equity Purchase and Rights Offering Agreement. 
  

	A.	Debt Financing Arrangement 

 Pursuant to the debt
financing arrangements in place by virtue of a commitment letter entered into on June 8, 2007 (as amended by virtue of the arrangement contemplated by the Equity Purchase and Rights Offering Agreement) with Credit Suisse Securities (USA) LLC
and Credit Suisse, Cayman Islands Branch (collectively with their affiliates, “Credit Suisse”), and with Special Value Opportunities Fund, LLC, Special Value Expansion Fund, LLC, Special Value Continuation Partners, LP and
Tennenbaum Opportunities Partners, LP (all managed by Tennenbaum Capital Partners, LLC (“TCP”)), Interstate FiberNet, Inc., a wholly-owned subsidiary of the Company (the “Borrower”) intends to obtain (1) from
Credit Suisse new first lien senior secured credit facilities consisting of (a) a $10,000,000 aggregate principal amount first lien senior secured revolving credit facility (the Revolving Credit Facility”) and (b) a
$230,000,000 aggregate principal amount first lien senior secured term loan facility (the “First Lien Loan Facility”, and together with the Revolving Credit Facility, the “First Lien Credit Facilities”), and
(2) from TCP funds a new $75,000,000 aggregate principal amount second lien senior secured term loan facility (the “Second Lien Credit Facility,” and together with the First Lien Credit Facilities, the “Credit
Facilities”). The First Lien Credit Facilities will be syndicated to other institutional lenders before the facility closing date. 
 After the closing date, the Company may elect, subject to pro forma compliance with specified financial covenants and other conditions, to solicit the lenders to increase commitment for borrowings under the Revolving Credit Facility
and to increase by up to $50 million the total principal amount of borrowings available under the First Lien Loan Facility. 
 The
obligations under the Credit Facilities would be guaranteed by the Company and the Company’s other subsidiaries. Moreover, the obligations would be secured by first-priority liens on substantially all of the assets of the Company and its
subsidiaries, in the case of the First Lien Credit Facilities, and second-priority liens on substantially all of the assets of the Company and its subsidiaries, in the case of the Second Lien Credit Facility. 
  

	B.	Equity Financing Arrangement 

 Pursuant to the
Company’s proposed recapitalization, (1) all of the Company’s outstanding Series B Warrants, Series C Warrants, and Series D Warrants will be exchanged by the holders thereof for shares of Common Stock, (2) 50% of the outstanding
shares of the Company’s 8% Series A Convertible Redeemable Preferred Stock will be redeemed for the 

 
liquidation preference plus accrued and unpaid dividends using in part proceeds from the sale of the Shares and the remainder converted into shares of Common
Stock, (3) all of the outstanding shares of 8% Series B Convertible Redeemable Preferred Stock and, to the extent there are any, 8% Series C Convertible Redeemable Preferred Stock will be converted into shares of Common Stock, and (4) all
outstanding restricted stock units for shares of the Company’s 8% Series A Convertible Redeemable Preferred Stock, the Company’s 8% Series B Convertible Redeemable Preferred Stock and Series D Warrants held by certain members of the
Company’s senior management will be converted into or exchanged for restricted stock units for an aggregate of 1,575,167 shares of Common Stock under the Company’s Executive Stock Incentive Plan. More specifically, commitment letters were
entered into with the WCAS Funds (as defined below) and the TCP Funds (as defined below) contemplating the following: 
 1. WCAS Equity Commitment
Letter. Pursuant to a commitment letter dated June 8, 2007 (as amended from time to time, the “WCAS Equity Commitment Letter”) signed by Welsh, Carson, Anderson & Strow VIII, L.P. (together with its affiliated
investment funds, the “WCAS Funds”), the WCAS Funds intend to, among other things: (a) purchase shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”) for an aggregate
purchase price of $21,000,000; (b) exchange approximately $23.5 million in principal amount of their interest in the Borrower’s third lien senior secured notes due 2009 (the “Existing Third Lien Notes”) into Common Stock;
(c) convert their ownership in the Company’s 8% Series B convertible redeemable preferred stock into shares of Common Stock; and (d) convert their ownership in the Company’s Series B Warrants and Series C Warrants into Common
Stock. 
 2. TCP Equity Commitment Letter. Pursuant to a commitment letter dated June 8, 2007 (as amended from time to time, the “TCP
Equity Commitment Letter”) signed by Special Value Absolute Return Fund, LLC, Special Value Bond Fund II, LLC and Special Value Continuation Partners, LP (collectively, the “TCP Funds”), the TCP Funds would, among other
things: (a) exchange approximately $25 million in principal amount of their interest in the Existing Third Lien Notes into Common Stock, and (b) convert their ownership in the Company’s Series D Warrants into Common Stock. 

3. Additional Existing Third Lien Note Exchange. Holders of Existing Third Lien Notes other than the WCAS Funds and the TCP Funds, will exchange approximately
$3.8 million in principal amount of such notes into Common Stock at $3.03 per share. 
 4. Participation in Rights Offering. None of the shares of
Common Stock held by WCAS Funds, TCP Funds, certain members of senior management, or received by additional holders of Existing Third Lien Notes who converted such Notes into Common Stock will participate in the Rights Offering. The Overview of
DeltaCom Equity Structure attached hereto as Schedule 1 to this Exhibit A sets forth the anticipated Common Stock ownership of the Company following the Rights Offering. 
  

	C.	Existing Debt Financing 

 Pursuant to the
Recapitalization, the Company will use the proceeds of borrowings from the First Lien Loan Facility and the Second Lien Credit Facility and sales of Common Stock for cash to repay in full all outstanding obligations in respect of (1) the
Borrower’s first lien senior secured notes due 2009, (2) the Borrower’s Second Amended and Restated Credit Agreement, dated as of July 26, 2005, (3) the Existing Third Lien Notes (other than the Existing Third Lien Notes to
be converted into Common Stock as described above), (4) the Company’s 10.5% senior unsecured notes due 2007, (5) the Company’s 10% unsecured vendor note due 2008, and (6) the Company’s existing capital leases
(collectively, the “Existing Debt”), in each case including all principal, premium and accrued and unpaid interest, fees and other amounts with respect thereto. All guarantees and security with respect to the Existing Date will be
unconditionally released upon full payment. 
 *** 

 EXHIBIT B 
 ITC^DELTACOM, INC. 
 CERTIFICATE OF DESIGNATION OF THE POWERS, PREFERENCES AND 
 RELATIVE, PARTICIPATING, OPTIONAL AND OTHER SPECIAL RIGHTS OF 6% 
 SERIES H CONVERTIBLE REDEEMABLE PREFERRED STOCK AND 
 QUALIFICATIONS, LIMITATIONS AND RESTRICTIONS
THEREOF 
 Pursuant to Section 151 of the 
 General Corporation Law of the State of Delaware 
 ITC^DeltaCom, Inc. (the “Corporation”),
a corporation organized and existing under the General Corporation Law of the State of Delaware, does hereby certify that, pursuant to the authority conferred upon the board of directors of the Corporation (the “Board of Directors”)
by the Corporation’s Restated Certificate of Incorporation, and pursuant to the provisions of Section 151 of the General Corporation Law of the State of Delaware, the Board of Directors is authorized to issue preferred stock of the
Corporation in one or more series, and that a duly authorized committee of the Board of Directors has duly approved and adopted the following resolution on July ___, 2007: 
 RESOLVED, that, pursuant to the authority vested in the Board of Directors by the Restated Certificate of Incorporation of the Corporation and in the Committee of Independent Directors (the “Committee”) by
the Board of Directors, and pursuant to Section 151 of the General Corporation Law of the State of Delaware, the Committee hereby creates, authorizes and provides for the issuance of 6% Series H Convertible Redeemable Preferred Stock, par value
$0.01 per share, consisting of 412,215 shares and having the powers, preferences and relative, participating, optional and other special rights and the qualifications, limitations and restrictions thereof that are set forth in the Restated
Certificate of Incorporation and in this resolution as follows: 
 Section 1    Designation and
Amount. There is hereby created out of the authorized and unissued shares of the preferred stock of the Corporation a series of preferred stock designated as the 6% Series H Convertible Redeemable Preferred Stock (the “Series H Preferred
Stock”). The number of shares constituting the Series H Preferred Stock shall be 412,215, with a liquidation preference of $100.00 per share (the “Liquidation Preference”). 
 Section 2    Dividends and Distributions. 
 (a) Each share of Series H Preferred Stock shall be entitled to receive cash dividends in an amount equal to 6% per annum of the Liquidation
Preference. Dividends with respect to each share of Series H Preferred Stock shall accrue and shall be cumulative, whether or not declared, from the date of issue of such share. In addition, each share of Series H Preferred Stock shall be entitled
to receive any dividend or distribution of other property, if any, declared 

  

 1 

 
and paid by the Corporation on shares of the Corporation’s common stock, par value $0.01 per share (the “Common Stock”) during the
applicable dividend period multiplied by the number equal to the number of shares of Common Stock into which each share of Series H Preferred Stock will be convertible in accordance with the conversion provisions set forth in Section 7(b)
herein; provided, however, that no distribution shall be made to the holders of the Series H Preferred Stock in connection with the rights offering to holders of Common Stock to subscribe for additional shares of Common Stock for $3.03
per share (the “Rights Offering”) contemplated by the recapitalization transactions consummated on the date of the initial issuance of shares of Series H Preferred Stock. 
 (b) An amount equal to any accrued cash dividends with respect to a share of Series H Preferred Stock shall be paid to the holder of such share on the
date such share is redeemed pursuant to Section 5 or converted into Common Stock pursuant to Section 7. 
 (c) Nothing herein
contained shall in any way or under any circumstances be construed or deemed to require the Board of Directors to declare, or the Corporation to pay or set apart for payment, any dividends on shares of Series H Preferred Stock at any time, except to
the extent of funds legally available therefor. 
 Section 3    Ranking. The Series H Preferred Stock
shall, with respect to dividend rights and distributions upon the liquidation, dissolution or winding-up of the Corporation, rank senior to all classes of Common Stock and each other class of capital stock or series of preferred stock issued by the
Corporation. 
 Section 4    Voting Rights. From and after the date of the initial issuance of the
Series H Preferred Stock, for all matters submitted to a vote of the stockholders of the Corporation, the holders of each share of Series H Preferred Stock shall be entitled to the number of votes equal to the number of shares of Common Stock into
which such share of Series H Preferred Stock will be convertible in accordance with the conversion provisions set forth in Section 7(b) herein. The holders of the Series H Preferred Stock shall be given notice of any meeting of stockholders of
which the holders of Common Stock are given notice in accordance with the bylaws of the Corporation. The holders of Series H Preferred Stock and the holders of Common Stock shall vote together as one class on all matters submitted to a vote of
stockholders of the Corporation, except as required by law or as provided in Sections 8 and 9 herein. Holders of Series H Preferred Stock shall have no special voting rights and their consent shall not be required (except to the extent they are
entitled to vote with holders of Common Stock as set forth herein) for taking any corporate action, except as provided in Sections 8 and 9 herein. The holders of the Series H Preferred Stock shall be entitled to act by written consent. 

Section 5    Redemption. 
 (a) Between the initial date of issuance of the shares of Series H Preferred Stock and the consummation of the Rights Offering if it occurs, shares of Series H Preferred Stock shall not be redeemable by the
Corporation. 
  

 2 

 (b) Four Business Days after the expiration of the Rights Offering (the “Rights Offering
Redemption Date”), the Corporation, without further notice, shall use the entire cash proceeds received from subscribers for Common Stock in the Rights Offering (the “Redemption Proceeds”) to redeem outstanding shares of
Series H Preferred Stock at a per share redemption price equal to the Liquidation Preference. In the event that fewer than all the outstanding shares of Series H Preferred Stock are able to be redeemed using the Redemption Proceeds, the shares to be
redeemed shall be selected pro rata among the holders of outstanding shares. Notwithstanding anything to the contrary contained herein, shares of Series H Preferred Stock shall be redeemed only out of the Redemption Proceeds and the
Corporation shall have no obligation to redeem any shares of Series H Preferred Stock out of any other corporate funds. Once a share of Series H Preferred Stock is redeemed, dividends will cease to accrue with respect to such share and all rights of
the stockholder as a holder thereof, including the right to receive Common Stock upon conversion, shall cease. “Business Day” means any day other than a Saturday, a Sunday or any day on which the banking institutions in the City of
New York or at a place payment is to be received are authorized by law, regulation or executive order to remain closed. 
 (c) From and after
the Rights Offering Redemption Date, each share of Series H Preferred Stock redeemed shall represent only the right to receive its pro rata share of the Redemption Proceeds plus an amount equal to accrued dividends through the Rights Offering
Redemption Date, which the Corporation shall deliver to the holder upon surrender of certificates for shares of Series H Preferred Stock. 
 Section 6    Reacquired Shares. Shares of Series H Preferred Stock purchased, redeemed or otherwise acquired by the Corporation in any manner whatsoever shall be retired and cancelled promptly after
the acquisition thereof. All such shares of Series H Preferred Stock upon their retirement and cancellation shall not be reissued as shares of Series H Preferred Stock and shall become authorized but unissued shares of preferred stock undesignated
to a series and may be reissued as part of a new series of preferred stock to be created by resolution or resolutions of the Board of Directors, subject to the conditions and restrictions on issuance set forth herein. 
 Section 7    Conversion. 
 (a) Between the initial date of issuance of the Series H Preferred Stock and the earlier of (i) the Rights Offering Redemption Date, and (ii) January 31, 2008, the shares of Series H Preferred Stock
shall not be convertible. 
 (b) On the Rights Offering Redemption Date each share of Series H Preferred Stock which is not redeemed on such
date automatically and without the need for any further action by the holder or the Corporation shall be converted into 33 shares of Common Stock. If the Rights Offering Redemption Date has not occurred on or before January 31, 2008, each
outstanding share of Series H Preferred Stock on January 31, 2008 automatically and without the need for any further action by the holder or the Corporation shall be converted into 33 shares of Common Stock, unless such date is extended by
mutual agreement between the Corporation and a majority of the outstanding shares of the Series H Preferred Stock, in which event, such share of Series H 

  

 3 

 
Preferred Stock shall be converted into Common Stock on such extended date. Upon conversion of any share of Series H Preferred Stock, the certificate
representing such share of Series H Preferred Stock shall automatically represent the number of shares of Common Stock into which such share of Series H Preferred Stock was converted. 
 (c) Upon conversion of a share of Series H Preferred Stock into Common Stock, the Corporation shall pay to the holder an amount equal to all accrued
dividends with respect to that share. 
 (d) The Corporation at all times shall reserve and keep available for issuance upon the conversion
of the Series H Preferred Stock such number of its authorized but unissued shares of Common Stock as shall from time to time be sufficient to permit the conversion of all outstanding shares of Series H Preferred Stock, and shall take all action
required to increase the authorized number of shares of Common Stock if at any time there shall be insufficient authorized unissued shares of Common Stock to permit such reservation or to permit the conversion of all outstanding shares of Series H
Preferred Stock. 
 (e) The issuance or delivery of certificates for Common Stock upon the conversion of shares of Series H Preferred Stock
shall be made without charge to the converting holder of such shares for such certificates or for any tax in respect of the issuance or delivery of such certificates or the securities represented thereby, and such certificates shall be issued or
delivered in the respective names of, or in such names as may be directed by, the holders of the shares converted; provided, however, that the Corporation shall not be required to pay any tax which may be payable in respect of any transfer involved
in the issuance and delivery of any such certificate in a name other than that of the holder of the shares of Series H Preferred Stock converted, and the Corporation shall not be required to issue or deliver such certificate unless or until the
person or persons requesting the issuance or delivery thereof shall have paid to the Corporation the amount of such tax or shall have established to the reasonable satisfaction of the Corporation that such tax has been paid. 
 Section 8    Amendment of the Certificate of Designation. So long as any shares of Series H Preferred Stock are
outstanding, neither (a) this Certificate of Designation nor (b) the terms of the Common Stock purchase warrants initially issued on October 29, 2002 shall be amended in any manner without, in addition to any other vote required by
law, the affirmative vote of the holders of a majority of the outstanding shares of Series H Preferred Stock, voting separately as a class. 
 Section 9    Special Voting Rights. In addition to any other vote required by law, the affirmative vote of the holders of a majority of the outstanding shares of Series H Preferred Stock, voting
separately as a class, shall be required to authorize the Corporation to (a) declare, make, pay or set aside funds for the payment of dividends upon any other class of shares of the capital stock of the Corporation or (b) purchase or
otherwise redeem any shares of any other class of shares of the capital stock of the Corporation; except, with respect to (a) and (b) above, pursuant to stock incentive plans of the Corporation existing on the date of the initial issuance
of the shares of Series H Preferred Stock; provided, however, that the provisions of this Section 9 

  

 4 

 
shall not apply in respect of the authorization or payment of any rights to acquire shares of Common Stock as contemplated by the Equity Purchase and Rights
Offering Agreement dated July 16, 2007 by and among the Corporation and the purchasers listed on the signature pages thereto, as may be amended from time to time, and the transactions contemplated thereby. 
 IN WITNESS WHEREOF, this Certificate of Designation has been duly executed by the Corporation’s authorized Officer this
     day of July, 2007. 
  

			
	ITC^DeltaCom, Inc.
		
	By:	 	 
	Name:	 	J. Thomas Mullis
	Title:	 	Senior Vice President – Legal and Regulatory

  

 5

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