Document:

Escrow Agreement dated Sept. 28, 1999

  
 Exhibit 10.11

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

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

  

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

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

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

  

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

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

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

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

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

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

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

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

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

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

 7 

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

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

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

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

 8 

 With a copy to: 
  

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

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

  

 9 

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

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

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

  

					
	“GMC”
	 
	 GULF MERGER CORPORATION, an
 Alabama corporation

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

  

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

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

  

					
	“Escrow Agent”
	
	 REGIONS BANK, an Alabama banking
 corporation

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

  

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

  

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

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

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

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

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

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

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

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

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

	 Harold Killian
	 	 

  

 12 

			
		
	 /s/    Ann Byrd
	 	 (SEAL)

	 Ann Byrd
	 	 

  

			
	 Gulf Telephone Company
 Restated Employee Stock Ownership Plan

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

			
		
	By:	 	 /s/    Esther H. Williams

			
		
	By:	 	 /s/    Ann Byrd

  

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

		
	By:	 	 /s/    Marjorie Snook

	 	 	 Co-Trustee

			
		
	By:	 	 /s/    Lyman F. Holland Jr.

	 	 	 Co-Trustee

  

 13Amendment to Escrow Agreement dated Sept. 28, 1999

  
 Exhibit 10.12

  
 AMENDMENT TO ESCROW AGREEMENT 
  
 This Amendment to Escrow Agreement is entered into pursuant to paragraph 17
of that certain Escrow Agreement made and entered into the 28th day of September, 1999, by and among MADISON RIVER TELEPHONE COMPANY, LLC, a Delaware limited liability company (“MRTC”), GULF MERGER CORPORATION, an
Alabama corporation (“GMC”), GULF COAST SERVICES, INC., an Alabama corporation (“GCSI”), the former owners of all of the issued and outstanding capital stock of GCSI as of the date of the Escrow Agreement
(such former owners, or their successors in interest, hereafter referred to as the “GCSI Stockholders”) and REGIONS BANK, an Alabama banking corporation “Escrow Agent”). 
  
 MRTC, GCSI (as itself and as successor in interest to GMC), the GCSI
Stockholders and the Escrow Agent, with the consent of the RURAL TELEPHONE FINANCE COOPERATIVE (“RTFC”) hereby amend paragraphs 6 and 10 of the Escrow Agreement by striking them in their entirety and replacing them with paragraphs 6
and 10 as set forth below. This Amendment to the Escrow Agreement may be executed in one or more counterparts, each of which will be deemed to be an original but all of which together, will constitute one and the same instrument. 
  
 6. Escrow Fund. The Parties agree that the Escrow Fund shall be held
and treated by Escrow Agent under the following terms and conditions: 
  
 (a) Through a disbursement notice signed only by Paul H. Sunu of MRTC, or such other person designated in writing by MRTC to Escrow Agent from time to time, MRTC may draw upon the Escrow Fund to pay expenses
(including, but not limited to, attorneys’ fees but excluding any allocation of costs of MRTC or GCSI salary or general overhead expenses) incurred by MRTC, GCSI or any of their subsidiaries or affiliates, in connection with investigating,
defending, settling or prosecuting any action, suit, proceeding, declaratory judgment action, claim, counterclaim, dispute or litigation (other than claims covered under the workers compensation laws of the State of Alabama) (individually or
collectively, “Proceedings”) which: 
  
 (1) as of the date of the original September 28, 1999 Escrow Agreement have a court docket number; or 
  
 (2) (i) arise from, or are related to, claims, counterclaims, crossclaims or circumstances referenced in any Proceedings described in (1)
above, and (ii) which are filed on behalf of any current or future claimant in such Proceedings described in (1) above or any similarly situated claimant in any future Proceedings. The claims referenced in this paragraph 6(a) (2) shall be deemed to
include, but not be limited to, any Proceedings arising out of any present or former employee’s interests in the Gulf Telephone Company Restated Employee Stock Ownership Plan and/or 401(k) Plan. 
  

 MRTC shall give the Escrow Committee advance notice of at least fifteen (15) business days prior to any
such payments, along with copies of supporting invoices. The Escrow Committee shall have the right to object to any payment which it decides is not a bona fide payment to a third party, and shall have the right to obtain reimbursement of such
payments either from the party to whom payment was made or the party on whose behalf payment was made. In addition, MRTC may draw upon the Escrow Fund to pay insurance premiums for a sixty-month, $10,000,000 supplemental directors and officer
liability policy. It is the understanding of the Parties that such policy will not cover any matter related to a Proceeding. 
  
 (b) The Escrow Fund may also be drawn upon to pay any or all of the following amounts, through a disbursement notice signed by a majority
of all members of the Escrow Committee: 
  
 (1)
any deficiency in the Minimum Cash Amount as determined by the Final Closing Date Financial Statements; 
  
 (2) unpaid obligations of GCSI (or amounts required to settle any such matters) set forth in subsections 5.1(b)(i), (ii) and (iii) of the
Merger Agreement, as determined by the Final Closing Date Financial Statements; and 
  
 (3) amounts constituting or satisfying any and all actions, suits, proceedings, claims, liabilities, demands, settlements, assessments,
judgments, interest, penalties, costs and expenses, including reasonable attorneys’ fees (whether or not incurred in connection with investigating, defending, settling or prosecuting any action, suit, proceeding or claim against MRTC, GCSI, the
ESOP, or any affiliate, officer, director or employee thereof hereunder), incident to any Proceedings referred to in paragraph (a) of this Section 6. 
  
 (c) In its sole discretion, and through a disbursement notice signed only by MRTC, MRTC may, upon confirmation of irrevocable insurance
coverage, without reservation, instruct Paying Agent to release an amount equal to the directors and officers insurance coverage in place and available to satisfy any amounts payable under each of the provisions of this Section 6. 
  
 (d) The Escrow Fund shall, upon notice to the Escrow Agent
by MRTC, be drawn upon to satisfy any final non-appealable judgment, plus post judgment interest if applicable, against MRTC, GCSI, the ESOP, or any of their affiliates, officers, directors, or trustees, or employees in any Proceedings referred to
in paragraph (a) of this Section 6. 
  
 (e) After
(and not before) the later of: (i) a final, non-appealable resolution of all Proceedings or Related Proceedings referred to in paragraph (a) of this Section 6 filed within six (6) years of the date of this Amendment; (ii) a final non-appealable
resolution of all claims arising from claims or circumstances described in any 

  

 2 

 
Proceedings which as of this date have a court docket number and which is binding, as a matter of law, on all Claimants; or (iii) six (6) years, in the event
that no claims described in (e)(ii) above are filed within such six (6) year period; and upon finalization and payment of all matters to be determined under paragraph (a) of this Section 6, the Escrow Committee shall cause the Escrow Agent to
disburse the remainder of the Escrow Fund. Upon receipt of a disbursement notice signed by all members of the Escrow Committee, the Escrow Agent shall pay to MRTC any amounts due under this Agreement, and thereafter, to each GCSI Stockholder that
has previously surrendered, or subsequently surrenders, such certificate(s) (other than certificates representing Dissenting Shares) a pro rata share, with such adjustments as may be necessary as a result of individual payments by certain
stockholders, which payments were applied to GCSI’s outstanding indebtedness with CoBank, as established by such documentation as may be requested by the Escrow Committee, (based on the number of issued and outstanding GCSI Shares immediately
prior to the Effective Time) of the remaining Escrow Fund for each GCSI Share represented by the surrendered certificate(s), which amount shall be paid by Escrow Agent within five (5) business days of receipt of the disbursement notice. The
disbursement notice shall specify any and all amounts to be paid and the recipients of the amounts specified in such notice. 
  
 (f) For amounts referenced in paragraphs (b)(1) and (2) of this Section 6, such amounts must exceed a threshold of $25,000.00 per item and
such amounts may not exceed $2,000,000 in the aggregate. 
  
 10. Notices. All notices, requests, demands, claims and other communications under this Agreement will be in writing. Any notice, request, demand, claim or other communication hereunder shall be deemed duly given upon personal
delivery to the intended recipient, or if (and then two (2) business days after) it is sent by registered or certified mail, return receipt requested, postage prepaid, and addressed to the intended recipient as set forth below: 
  
 If to MRTC, GMC or GCSI: 
  
 Madison River Telephone Company, LLC 
 103 South Fifth Street 
 Mebane, North
Carolina 27302 
 Attention: Paul H. Sunu 
 (919) 563-1500 
 (919) 563-4993 fax 
 sunu@madisonriver.net 
  
 With a
copy to: 
  
 Matt L. Springer 
 Vice President and General Counsel 
 Madison
River Communications, Inc. 
 103 South Fifth Street 
 Mebane, North Carolina 27302 
 (919) 563-1500 
 (919) 563-4993 fax 
 springem@madisonriver.net

  

 3 

 Larry E. Robbins, Esq. 
 Wyrick, Robbins, Yates & Ponton, LLP 
 Suite 300 
 4101 Lake Boone Trail 
 Raleigh, North
Carolina 27607 
 (919) 781-4000 
 (919) 781-4865 fax 
 lrobbins@wyrick.com e-mail 
  
 If to the GCSI Stockholders: 
  
 Marjorie Y. Snook, as a Trustee of the John McClure Snook Testamentary Trust 
 c/o M. Mort Swaim, Esq. 
 235 West Laurel Avenue 
 Foley, Alabama 36535 
 (334) 943-3999

 (334) 943-3137 fax 
 swaimlaw@gulftel.com e-mail 
  
 Regions Bank, as Trustee
of John McClure Snook Testamentary Trust 
 Trust Department 
 104 St. Francis Street, 2nd Floor 
 P.O. Box 2527 
 Mobile, Alabama 36602 
 Attention: Robert B.
Doyle 
 (334) 690-1452 
 (334)
690-1591 fax 
 bdoyle@regionsbank.com e-mail 
  
 With a copy to: 
  
 GCSI Stockholders as set forth on Exhibit “A” hereto 
  

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

 (334) 432-7682 
 (334) 432-2800
fax 
 RGW@JohnstoneAdams.com e-mail 
  

 4 

 John Hommel and North Star ESOP & Fiduciary Services, LLC, as Trustee 
 of the Gulf Telephone Company 
 Employee Stock
Ownership Plan 
  
 500 West Madison Street, Suite 3800

 Chicago, Illinois 60661 
 (312)
559-9761 
 (312) 559-9762 fax 
 jhommel@northstartrust.com 
  
 With a copy to:

  
 William H. Wasden, Esq. 
 Pierce, Ledyard, Lata & Wasden P.C. 
 Suite 500 
 41 North Beltline Highway 
 P.O. Box 16046 
 Mobile, Alabama 36616 
 (334) 344-5151 
 (334) 344-9696 fax

 hww@pllaw.com e-mail 
  
 If to RTFC: 
  
 Rural Telephone Finance Cooperative 
 Woodland
Park 
 2201 Cooperative Way 
 Herndon, Virginia 20171-3025 
 Attention: Loan Officer 
 (703) 709-6780 fax 
  
 If to
Escrow Agent: 
  
 Regions Bank 
 Trust Department 
 104 St. Francis Street, 2nd
Floor 
 P.O. Box 2527 
 Mobile,
Alabama 36602 
 Attention: Robert B. Doyle 
 (334) 690-1452 
 (334) 690-1591 fax 
 bdoyle@regionsbank.com e-mail 
  

 5 

 With a copy to: 
  

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

 (334) 432-7682 
 (334) 432-2800
fax 
 RGW@JohnstoneAdams.com e-mail 
  
 [THE NEXT PAGE IS THE SIGNATURE PAGE] 
  

 6 

 IN WITNESS WHEREOF, the Parties have executed and delivered this Amendment to the Escrow Agreement
on the      day of             , 2000. 
  

			
	“MRTC”
	
	MADISON RIVER TELEPHONE COMPANY, LLC, a Delaware limited liability company
		
	By:	 	 /S/    J. STEPHEN
VANDERWOUDE

	Its:	 	 Chairman and CEO

	
	“GCSI”
	
	GULF COAST SERVICES, INC., an Alabama corporation
		
	By:	 	 /S/    J. STEPHEN
VANDERWOUDE

	Its:	 	 Vice Chairman

  

			
	“GCSI Stockholders”
	
	 /S/    HAROLD
KILLIAN

	 Harold Killian

	
	 /S/    DENNIS LEONARD
KAISER

	 Dennis Leonard Kaiser

	
	 /S/    ROBERT HOWARD
YOUNCE

	 Robert Howard Younce

	
	 /S/    DALE EUGENE
YOUNCE

	 Dale Eugene Younce

	
	 /S/    ROBERT L. MACKEY,
JR.

	 Robert L. Mackey, Jr.

	
	 /S/    WILLARD RICHARD
MITCHEM

	 Willard Richard Mitchem

	
	 /S/    ESTHER HOLMAN
WILLIAMS

	 Esther Holman Williams

	
	 /S/    WOODARD S.
SETZER

	 Woodard S. Setzer

	
	 /S/    ANN
BYRD

	 Ann Byrd

  

			
	 Gulf Telephone Company Employee
 Stock Ownership Plan

		
	 By:
	 	 /s/    John G. Hommell, its President

	 North Star ESOP & Fiduciary Services, LLC

	 Its: Trustee

	
	John McClure Snook Testamentary Trust (as the sole surviving Trust created under the John McClure Snook Irrevocable Trust Agreement dated December 23,
1993).
	
	 REGIONS BANK, an Alabama banking
 corporation, as Co-Trustee

		
	 By:
	 	 /s/    Robert B. Doyle

	 Its:
	 	 Vice President and Personal Trust Manager

		
	 By:
	 	 /s/    Marjorie Y. Snook

	 	 	 Marjorie Y. Snook, as Co-Trustee

	
	“Escrow Agent”
	
	 REGIONS BANK, an Alabama banking
 corporation

		
	 By:
	 	 /s/    Robert B. Doyle

	 Its:
	 	 Vice President and Personal Trust Manager

	
	Approved:
	
	“RTFC”
	
	 RURAL TELEPHONE FINANCE
 COOPERATIVE

		
	 By:
	 	 /s/    Robin C. Reed

	 Its:
	 	 Assistant Secretary - Treasurer

  

 EXHIBIT A 
  

 Dennis Leonard Kaiser 
 8967
Escambia Avenue 
 Alberta, Alabama 36530 
 (334) 961-7566

  
 Harold Killian 
 501 Cotton Creek Drive 
 Gulf Shores, Alabama 36542 
 (334) 955-1600 
  
 Robert Howard Younce

 2370 Younce Lane 
 Gulf Shores, Alabama 36542 
 (334) 968-6431 
  
 Robert L. Mackey, Jr. 
 8660 Winford Lane 
 East Mobile, Alabama 36619 
 (334) 633-7417 
  
 Ann L. Byrd 
 Post Office Box 422 
 Foley, Alabama 36536 
 (334) 979-8545 
  
 Esther Holman Williams 
 10401 Vernant Park Road 
 Foley, Alabama 36535 
 (334) 965-7716 
  
 Willard Richard Mitchem

 13280 J.B. Williams Road 
 Loxley, Alabama 36551 
 (334) 964-5664 
  
 Woodard S. Setter 
 9370 Fairway Drive 
 Foley, Alabama 36535 
 (334) 955-1008 
  
 Dale Eugene Younce. 
 15801 George Younce Road 
 Foley, Alabama 36535 
 (334) 943-9977

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