Document:

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                                                                     Exhibit 4.4

                                                                  Execution Copy

                               ITC/\DELTACOM, INC.

                                       and

                          MELLON INVESTOR SERVICES LLC

                                       as

                                  WARRANT AGENT

                                   ----------

                                WARRANT AGREEMENT

                          Dated as of October 29, 2002,

                          as amended and restated as of

                                 October 6, 2003

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                                TABLE OF CONTENTS
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<S>                                                                                  <C>
W I T N E S S E T H:..................................................................1

SECTION 1.    APPOINTMENT OF WARRANT AGENT............................................2

SECTION 2.    ISSUANCE OF WARRANTS; WARRANT CERTIFICATES..............................2

      2.1     Form and Dating.........................................................2

      2.2     Execution...............................................................3

      2.3     Warrant Registrar.......................................................4

      2.4     Holder Lists............................................................4

SECTION 3.    TERMS OF WARRANTS; EXERCISE OF WARRANTS.................................5

SECTION 4.    PAYMENT OF TAXES.......................................................11

SECTION 5.    RESERVATION OF WARRANT SHARES..........................................11

SECTION 6.    OBTAINING STOCK EXCHANGE LISTINGS......................................12

SECTION 7.    ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES ISSUABLE.....12

SECTION 8.    FRACTIONAL INTERESTS...................................................25

SECTION 9.    WARRANT AGENT..........................................................26

      9.1     Duties and Obligations; Limitations of Liability.......................26

      9.2     Merger, Consolidation or Change of Name of Warrant Agent...............31

      9.3     Change of Warrant Agent................................................32

SECTION 10.   TRANSFER; REPLACEMENT; CANCELLATION....................................33

      10.1    Transfer...............................................................33

      10.2    Replacement Warrants...................................................38

      10.3    Temporary Warrants.....................................................39

      10.4    Cancellation...........................................................39

SECTION 11.   NOTICES TO COMPANY AND WARRANT AGENT...................................40

SECTION 12.   SUPPLEMENTS AND AMENDMENTS.............................................42

SECTION 13.   SUCCESSORS.............................................................44

SECTION 14.   TERMINATION............................................................44

SECTION 15.   CERTAIN DEFINITIONS....................................................44

SECTION 16.   WARRANT HOLDER NOT DEEMED A STOCKHOLDER................................52

SECTION 17.   GOVERNING LAW..........................................................53

SECTION 18.   BENEFITS OF THIS AGREEMENT.............................................53
</TABLE>

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<TABLE>
<S>                                                                                <C>
SECTION 19.   COUNTERPARTS...........................................................53

EXHIBIT A

FORM OF WARRANT CERTIFICATE.........................................................A-1

Form of Election to Purchase........................................................A-9

Schedule of Exchanges of Interests in Global Warrant...............................A-10

EXHIBIT B

FORM OF INVESTMENT LETTER FOR EXERCISE..............................................B-1

EXHIBIT C

FORM OF INVESTMENT LETTER FOR TRANSFER..............................................C-1
</TABLE>

                                       ii

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                                WARRANT AGREEMENT

          This Warrant Agreement, dated as of October 29, 2002, as amended and
restated as of October 6, 2003 (this "Warrant Agreement" or "Agreement"), is
between ITC/\DeltaCom, Inc., a Delaware corporation (the "Company"), and Mellon
Investor Services LLC, a New Jersey limited liability company, as warrant agent
(the "Warrant Agent"). Unless elsewhere defined herein, capitalized terms used
herein shall have the meaning given to them in Section 15.

                              W I T N E S S E T H:

          WHEREAS, in connection with and under a plan of reorganization
confirmed pursuant to chapter 11 of title 11 of the United States Code, as
amended, the Company proposes to issue and deliver shares of the 8% Series A
Convertible Redeemable Preferred Stock, par value $.01 per share, of the Company
(the "Series A Preferred Stock") and 1,020,000 warrants (each, a "Warrant") to
purchase an equal number of shares, subject to adjustment in accordance with
Section 7 (the "Warrant Shares"), of the Common Stock, par value $.01 per share,
of the Company (the "Common Stock");

          WHEREAS, the Company wishes the Warrant Agent to act as Warrant Agent
on behalf of the Company, and the Warrant Agent is willing to so act, in
connection with the issuance of the Warrants and the other matters provided
herein; and

          WHEREAS, the Company wishes to amend and restate the Warrant Agreement
in accordance with Section 12 of the Warrant Agreement;

          NOW, THEREFORE, in consideration of the promises and the mutual
agreements herein set forth, the parties hereby agree as follows:

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SECTION 1. APPOINTMENT OF WARRANT AGENT.

          The Company hereby appoints the Warrant Agent to act as agent for the
Company in accordance with the express terms and conditions set forth
hereinafter in this Agreement, and the Warrant Agent hereby accepts such
appointment.

SECTION 2. ISSUANCE OF WARRANTS; WARRANT CERTIFICATES.

     2.1  Form and Dating.

          (a) The Warrants shall be represented by certificates substantially in
the form of Exhibit A hereto (the "Warrant Certificates"). The Warrant
Certificates may have notations, legends or endorsements required by law, stock
market or stock exchange rule or usage (none of which shall affect the rights,
duties or obligations of the Warrant Agent as set forth in this Agreement). Each
Warrant Certificate shall be dated the date of the countersignature by the
Warrant Agent. The terms and provisions contained in the Warrant Certificates
shall constitute, and are hereby expressly made, a part of this Warrant
Agreement. The Company and the Warrant Agent, by their execution and delivery of
this Warrant Agreement, expressly agree to such terms and provisions and to be
bound thereby. However, to the extent any provision of any Warrant Certificate
conflicts with the express provisions of this Warrant Agreement, the provisions
of this Warrant Agreement shall govern and be controlling.

          (b) Warrants may be issued in global form and shall include the Global
Warrant Legend set forth in Exhibit A hereto and the "Schedule of Exchanges of
Interests in Global Warrant" attached thereto. Warrants may also be issued in
definitive form but without the Global Warrant Legend and without the "Schedule
of Exchanges of Interests in Global Warrant" (the "Definitive Warrants"). Each
Global Warrant shall represent such of the outstanding Warrants as shall be
specified therein and each Global Warrant shall provide that it shall represent
the number of outstanding Warrants from time to time endorsed thereon and that

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the number of outstanding Warrants represented thereby may from time to time be
reduced or increased, as appropriate, to reflect exchanges and redemptions or
other adjustments pursuant to Section 7. Any endorsement of a Global Warrant to
reflect the amount of any increase or decrease in the number of outstanding
Warrants represented thereby shall be made by the Warrant Agent (upon specific
written instruction from the Company) in accordance with instructions given by
the Holder thereof as required by Section 10.

     2.2  Execution.

          An Officer of the Company shall sign each Warrant Certificate on
behalf of the Company by manual or facsimile signature. If the Officer of the
Company whose signature is on a Warrant no longer holds that office at the time
a Warrant Certificate is countersigned, such Warrant shall nevertheless be
valid. A Warrant shall not be valid until countersigned by the manual or
facsimile signature of the Warrant Agent. The signature of the Warrant Agent
shall be conclusive evidence that the Warrant has been properly issued under
this Warrant Agreement. Upon its receipt of (i) a written order of the Company
containing specific instructions signed by an Officer (a "Warrant
Countersignature Order") and (ii) all other relevant information which the
Warrant Agent may request, the Warrant Agent shall countersign Warrant
Certificates for original issue up to the number of Warrants stated in the
preamble hereto. The Warrant Agent may appoint an agent acceptable to the
Company to countersign Warrants. Such an agent may countersign Warrants whenever
the Warrant Agent may do so. Each reference in this Warrant Agreement to a
countersignature by the Warrant Agent includes a countersignature by such agent.
Such an agent has the same rights as the Warrant Agent to deal with the Company
or an Affiliate of the Company.

                                       3

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     2.3  Warrant Registrar.

          The Company shall maintain an office or agency where Warrants may be
presented for registration of transfer or for exchange (the "Warrant
Registrar"). The Warrant Registrar shall keep a register of the Warrants and of
their transfer and exchange. The Company may appoint one or more co-Warrant
Registrars. The term "Warrant Registrar" includes any co-Warrant Registrar. The
Company may change any Warrant Registrar without notice to any Holder. The
Company shall notify the Warrant Agent in writing of the name and address of any
agent (including any Warrant Registrar) that is not a party to this Warrant
Agreement. If the Company fails to appoint or maintain another entity as the
Warrant Registrar, the Warrant Agent shall act as the Warrant Registrar. The
Company or any of its subsidiaries may act as Warrant Registrar. The Company
initially appoints the Warrant Agent to act as the Warrant Registrar with
respect to the Global Warrants and The Depository Trust Company ("DTC") to act
as Depositary with respect to the Global Warrants. The Warrant Registrar is
hereby granted all of the rights, powers, protections, indemnifications and
exculpations that have been granted to the Warrant Agent under this Agreement,
including, without limitation, the rights, powers, protections, indemnifications
and exculpations granted under Section 9.

     2.4  Holder Lists.

          The Warrant Agent shall preserve in as current a form as is reasonably
practicable the most recent list available to it of the names and addresses of
all Holders. The Company shall promptly furnish to the Warrant Agent, at such
times as the Warrant Agent may request in writing, a list, in such form and as
of such date as the Warrant Agent may reasonably require, of the names and
addresses of the Holders.

                                       4

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SECTION 3. TERMS OF WARRANTS; EXERCISE OF WARRANTS.

          (a) Subject to the terms of this Agreement, each Holder shall have the
right, which may be exercised at any time and from time to time during the
period commencing on the date of issuance of the Warrants and ending immediately
prior to 5:00 p.m., New York City time, on October 29, 2007 (the "Exercise
Period"), to receive from the Company the number of fully paid and
non-assessable Warrant Shares which the Holder may at the time be entitled to
receive upon exercise of such Warrants upon payment, subject to Section 3(f), of
$5.114 per share of Common Stock, as adjusted from time to time in accordance
with Section 7 (the "Exercise Price"), in cash, by wire transfer or by certified
or official bank check payable to the order of the Company; provided that
Holders holding Warrants shall be able to exercise their Warrants only in
accordance with the procedures set forth in this Agreement and the Warrant
Certificate and only if (i) a registration statement relating to the exercise of
the Warrants and issuance of the Warrant Shares upon such exercise is then
effective under the Securities Act of 1933, as amended (the "Securities Act"),
or (ii) the exercise of such Warrants and the issuance of the Warrant Shares
upon such exercise is exempt from the registration requirements of the
Securities Act and such Warrant Shares are qualified for sale or exempt from
registration or qualification under the applicable securities laws of the states
in which the various Holders of the Warrants or other Persons to whom it is
proposed that such Warrant Shares be issued upon exercise of the Warrants
reside. Each Warrant not exercised prior to 5:00 p.m., New York City time, on
October 29, 2007 (the "Expiration Date") shall become void and all rights
thereunder and all rights in respect thereof under this Agreement shall cease as
of such time. No adjustments as to dividends shall be made upon exercise of the
Warrants.

          (b) In order to exercise all or any of the Warrants, the Holder
thereof must deliver to the Warrant Agent at its office set forth in Section 11
(i) the Warrant Certificate (in the

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case of Definitive Warrants), (ii) the form of election to purchase on the
reverse thereof duly and properly filled in and signed, which signature shall be
guaranteed by a bank or trust company having an office or correspondent in the
United States or a broker or dealer which is a member of a registered securities
exchange or the National Association of Securities Dealers, Inc., and (iii)
subject to Section 3(f), payment to the Warrant Agent for the account of the
Company of the Exercise Price for the number of Warrant Shares in respect of
which such Warrants are then exercised, as provided in Section 3(a).

          (c) If, at the time of the surrender of a beneficial interest in any
Restricted Global Warrant or a Restricted Definitive Warrant in connection with
any exercise of such Warrant, such exercise and the issuance of the Warrant
Shares issuable upon such exercise shall not be registered under the Securities
Act, it shall be a condition to such exercise and the issuance of such Warrant
Shares that (i) the Holder of such Warrant furnish to the Company an investment
letter substantially in the form of Exhibit B hereto and (ii) the Holder or each
other Person to whom it is proposed that such Warrant Shares be issued qualify
as an "accredited investor" as defined in Rule 501(a) of Regulation D under the
Securities Act. The Company may waive compliance with such condition, in whole
or in part, in its sole discretion.

          (d) Subject to the provisions of Section 10, upon specific written
instruction from the Company, the Warrant Agent shall deliver or cause to be
delivered with all reasonable dispatch, in such name or names as the Holder may
designate in writing, a certificate or certificates for the number of whole
Warrant Shares issuable upon exercise of the Warrants delivered by the Holder
for exercise. Such certificate or certificates shall be deemed to have been
issued and any Person so designated to be named therein shall be deemed to have
become a holder of record of such Warrant Shares as of the date of the surrender
of such Warrants and,

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subject to Section 3(f), payment of the Exercise Price; provided, however, that
if such Person would be so deemed to have become a holder of record of Warrant
Shares as of a date of record referred to in Section 7(d), then, notwithstanding
the foregoing, such Person shall be deemed to have become a holder of record of
such Warrant Shares on the first Business Day immediately following such date of
record.

          (e) The Warrants shall be exercisable, at the election of the Holders
thereof, either in full or from time to time in part, provided that Warrants may
not be exercised by any Holder for an amount less than 100 Warrant Shares unless
such Holder only owns, in the aggregate, such lesser amount. If fewer than all
the Warrants represented by a Warrant Certificate are exercised, such Warrant
Certificate shall be surrendered and a new Warrant Certificate of the same tenor
and for the number of Warrants which were not exercised shall be executed
promptly by the Company and delivered promptly to the Warrant Agent and, upon
written notice thereof from the Company, the Warrant Agent shall countersign the
new Warrant Certificate, registered in such name or names as may be directed in
writing by the Holder, and shall promptly deliver the new Warrant Certificate to
the Person or Persons entitled to receive such new Warrant Certificate (as
specified in writing by the Company).

          (f) Subject to the last sentence of this Section 3(f), in lieu of
making the payment of the Exercise Price in connection with the exercise of each
Warrant pursuant to Section 3(a) (but in all other respects in accordance with
the exercise procedure set forth above, as such exercise procedure may be
adjusted to reflect the conversion referred to herein), the Holder of each
Restricted Warrant may elect to convert such Restricted Warrant into shares of
Common Stock by providing the Company and the Warrant Agent with joint written
notification

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of such election, in which event the Company shall issue to such Holder the
number of shares of Common Stock calculated in accordance with the following
formula:

          X = (A - B) x C
          ---------------
                 A

          where

               X = the number of shares of Common Stock issuable upon exercise
                   pursuant to this Section 3(f)

               A = the Closing Price on the Business Day immediately preceding
                   the date on which the Holder delivers the Warrant Certificate
                   and form of election to purchase to the Company pursuant to
                   Section 3(b)

               B = the Exercise Price

               C = the number of shares of Common Stock as to which such
                   Restricted Warrant is being exercised pursuant to Section
                   3(a)

If the foregoing calculation results in a negative number, no shares of Common
Stock shall be issued upon conversion pursuant to this Section 3(f).
Notwithstanding any provision of this Agreement to the contrary, the Holder of
any Restricted Warrant may elect to convert such Restricted Warrant into shares
of Common Stock as provided in this Section 3(f) only if the Board of Directors
shall determine that upon such conversion the Company shall receive
consideration in an amount not less than the par value of the shares of Common
Stock issuable upon such conversion. Any reference in this Agreement or any
Warrant to exercise of a Warrant shall be deemed also to refer to conversion of
a Restricted Warrant in accordance with this Section 3(f), as the context may
require.

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          (g) All Warrant Certificates surrendered upon exercise of Warrants
shall be cancelled by the Warrant Agent. Such cancelled Warrant Certificates
shall then be disposed of by the Warrant Agent in its customary manner. The
Warrant Agent shall account promptly to the Company with respect to Warrants
exercised and concurrently pay to the Company all monies received by the Warrant
Agent for the purchase of the Warrant Shares through the exercise of such
Warrants.

          (h) The Warrant Agent shall keep copies of this Agreement and any
written notices given or received hereunder available for inspection by the
Holders during normal business hours at its office. The Company shall supply the
Warrant Agent from time to time with such numbers of copies of this Agreement as
the Warrant Agent may reasonably request.

          (i) For so long as the Holders of the Warrants on the Issue Date
continue to be the beneficial and record owners of at least 50% of all Warrants
then outstanding, in the event of:

               (i) any taking by the Company of a record of the holders of any
     class of securities of the Company for the purpose of determining the
     holders thereof who are entitled to receive any dividend or other
     distribution, or any right to subscribe for, purchase or otherwise acquire
     any shares of Capital Stock of any class or any other securities or
     property, or to receive any other right, other than, in each case, (A) a
     regular quarterly or other periodic dividend publicly announced by the
     Company or provided for in the instrument governing such class of
     securities (including, without limitation, dividends payable on the Series
     A Preferred Stock pursuant to the Series A Certificate of Designation as in
     effect on or prior to the Amendment Date or on the Series B Preferred Stock
     pursuant to the Series B Certificate of Designation as in effect on the
     Amendment

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     Date), (B) any other issuance of Series B Preferred Stock after the
     Amendment Date pursuant to the Series B Certificate of Designation as in
     effect on the Amendment Date or (C) a regular quarterly or other periodic
     payment of interest in cash or securities on any issue of the Company's
     indebtedness in accordance with the instrument governing such indebtedness,
     or

               (ii) the proposed filing of a certificate of dissolution in
     connection with any Liquidation Event,

then and in each such event the Company shall give or cause to be given to each
Holder of the Warrants a written notice (with a copy thereof to the Warrant
Agent) specifying (i) the date on which any such record is to be taken for the
purpose of such dividend, distribution or right and a description of such
dividend, distribution or right or the date on which the filing of such
certificate of dissolution is expected to be effected, as the case may be, and
(ii) the date, if any, that is to be fixed, on which the holders of record of
Common Stock (or other securities) shall be entitled to exchange their shares of
Common Stock (or other securities) for securities or other property deliverable
upon such event. Such notice shall be given at least 20 days prior to the date
specified in such notice on which such event, action or record is to be taken or
on which the filing of such certificate of dissolution is expected to be
effected. Any failure by the Company to provide any such notice required by this
Section 3(i) shall not affect the validity of any event, action or record
required to be specified in such notice.

          (j) Without limiting the generality of Section 3(i), any notice
required by Section 3(i) to be given to the Holders of Warrants shall be deemed
delivered (i) upon personal delivery to the Holder to be notified, (ii) when
sent by confirmed telex or facsimile if sent during normal business hours of the
recipient and, if not, then on the next Business Day, (iii) five days

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after having been deposited into the U.S. mails or (iv) one day after deposit
with a nationally recognized overnight courier, specifying next day delivery,
with written verification of receipt. All notices required by Section 3(i) shall
be sent to each Holder at such Holder's address appearing on the books of the
Company.

SECTION 4. PAYMENT OF TAXES.

          The Company shall pay any and all taxes and governmental charges
attributable to the initial issuance of Warrant Shares upon the exercise of
Warrants; provided that the Company shall not be required to pay any tax or
charge which may be payable in respect of any transfer involved in the issue of
any Warrant Certificates or any certificates for Warrant Shares in a name other
than that of the registered holder of a Warrant Certificate surrendered upon the
exercise of a Warrant, and the Company and the Warrant Agent shall not be
required to issue or deliver such Warrant Certificates unless or until the
Person or Persons requesting the issuance thereof shall have paid to the Company
the amount of such tax or charge or shall have established to the satisfaction
of the Company and the Warrant Agent that such tax or charge has been paid.

SECTION 5. RESERVATION OF WARRANT SHARES.

          The Company shall at all times reserve and keep available, free from
preemptive rights, out of its authorized but unissued Common Stock and/or its
authorized and issued Common Stock held in its treasury, for the purpose of
enabling it to satisfy any obligation to issue Warrant Shares upon exercise or
conversion of Warrants, the maximum number of shares of Common Stock which may
then be deliverable upon the exercise or conversion of all outstanding Warrants.
All such shares, when issued upon such exercise or conversion, shall be validly
issued, fully paid and non-assessable, free of all Liens and not subject to
preemptive rights.

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SECTION 6. OBTAINING STOCK EXCHANGE LISTINGS.

          For so long as the Warrant Shares are outstanding, the Company shall
use reasonable efforts to have the Warrant Shares quoted on the National Market
System of NASDAQ (the "NMS"), or listed on a national securities exchange or
quoted on a national automated quotation system other than the NMS, on which the
Common Stock is then quoted or listed.

SECTION 7. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES ISSUABLE.

          During the Exercise Period, the Exercise Price and the number of the
Warrant Shares shall be subject to adjustment from time to time as provided in
this Section 7. In the event that any adjustment of the Exercise Price as
required herein results in a fraction of a cent, such Exercise Price shall be
rounded up to the nearest whole cent.

          (a) Except as otherwise provided in Section 7(c), if and whenever
during the period beginning on the Issue Date and ending at the close of
business on the second anniversary of the Issue Date the Company issues or
sells, or in accordance with Section 7(b) is deemed to have issued or sold, any
shares of Common Stock for no consideration or for a consideration per share
(calculated as set forth in Section 7(b)) less than the Exercise Price in effect
on the date of issuance or sale (or deemed issuance or sale) of such Common
Stock (a "Dilutive Issuance"), then immediately upon such Dilutive Issuance, the
Exercise Price shall be reduced to a price determined by multiplying the
Exercise Price in effect immediately prior to such Dilutive Issuance by a
fraction, (i) the numerator of which is an amount equal to the sum of (x) the
total number of shares of Common Stock Deemed Outstanding immediately prior to
such Dilutive Issuance plus (y) the quotient of the aggregate consideration,
calculated as set forth in Section 7(b), received or receivable by the Company
upon such Dilutive Issuance divided by the

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Exercise Price in effect immediately prior to such Dilutive Issuance, and (ii)
the denominator of which is the total number of shares of Common Stock Deemed
Outstanding immediately after such Dilutive Issuance.

          (b) For purposes of determining the adjusted Exercise Price pursuant
to Section 7(a), the following provisions shall be applicable:

               (i) If the Company in any manner issues or grants any warrants,
     rights or options, whether or not immediately exercisable, to subscribe for
     or to purchase Common Stock, or other securities convertible into or
     exchangeable for Common Stock ("Convertible Securities") (such warrants,
     rights and options to purchase Common Stock or Convertible Securities are
     hereinafter referred to as "Options"), and the price per share for which
     Common Stock is issuable upon the exercise of such Options is less than the
     Exercise Price in effect on the date of issuance or grant of such Options,
     then the maximum total number of shares of Common Stock issuable upon the
     exercise of all such Options shall, as of the date of the issuance or grant
     of such Options, be deemed to be outstanding and to have been issued and
     sold by the Company for such price per share. For purposes of the preceding
     sentence, the "price per share for which Common Stock is issuable upon the
     exercise of such Options" is determined by dividing (x) the total amount,
     if any, received or receivable by the Company as consideration for the
     issuance or grant of all such Options, plus the minimum aggregate amount of
     additional consideration, if any, payable to the Company upon the exercise
     of all such Options, plus, in the case of Convertible Securities issuable
     upon the exercise of such Options, the minimum aggregate amount of
     additional consideration payable upon the conversion or exchange thereof at
     the time such Convertible Securities first become convertible or

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     exchangeable, by (y) the maximum total number of shares of Common Stock
     issuable upon the exercise of all such Options (assuming full conversion of
     Convertible Securities, if applicable). No further adjustment to the
     Exercise Price shall be made upon the actual issuance of such Common Stock
     upon the exercise of such Options or upon the conversion or exchange of
     Convertible Securities issuable upon exercise of such Options.

               (ii) If the Company in any manner issues or sells any Convertible
     Securities, whether or not immediately convertible (other than where such
     Convertible Securities are issuable upon the exercise of Options for which
     an adjustment of the Exercise Price is made pursuant to Section 7(b)(i))
     and the price per share for which Common Stock is issuable upon such
     conversion or exchange is less than the Exercise Price in effect on the
     date of issuance of such Convertible Securities, then the maximum total
     number of shares of Common Stock issuable upon the conversion or exchange
     of all such Convertible Securities shall, as of the date of the issuance of
     such Convertible Securities, be deemed to be outstanding and to have been
     issued and sold by the Company for such price per share. For the purposes
     of the preceding sentence, the "price per share for which Common Stock is
     issuable upon such conversion or exchange" is determined by dividing (x)
     the total amount, if any, received or receivable by the Company as
     consideration for the issuance or sale of all such Convertible Securities,
     plus the minimum aggregate amount of additional consideration, if any,
     payable to the Company upon the conversion or exchange thereof at the time
     such Convertible Securities first become convertible or exchangeable, by
     (y) the maximum total number of shares of Common Stock issuable upon the
     conversion or exchange of all such Convertible Securities. No further
     adjustment of the Exercise Price shall be made upon

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     the actual issuance of such Common Stock upon conversion or exchange of
     such Convertible Securities, and if any such issuance or sale of such
     Convertible Securities is made upon exercise of any Options for which
     adjustments of the Exercise Price had been or are to be made pursuant to
     other provisions of this Section 7(b), no further adjustment of the
     Exercise Price shall be made by reason of such issuance or sale.

               (iii) If there is a change at any time in (A) the aggregate
     amount of additional consideration payable to the Company upon the exercise
     of any Options, (B) the aggregate amount of additional consideration, if
     any, payable to the Company upon the conversion or exchange of any
     Convertible Securities, or (C) the rate at which any Options or any
     Convertible Securities are exercisable for or convertible into or
     exchangeable for Common Stock (other than under or by reason of provisions
     in such Options or Convertible Securities designed to protect against
     dilution), the Exercise Price in effect at the time of such change shall be
     readjusted to the Exercise Price which would have been in effect at such
     time if such Options or Convertible Securities still outstanding had
     provided for such changed additional consideration or changed rate, as the
     case may be, at the time such Options or Convertible Securities were
     initially granted, issued or sold.

               (iv) If, in any case, the total number of shares of Common Stock
     issuable upon exercise of any Option or upon conversion or exchange of any
     Convertible Securities is not, in fact, issued and the rights to exercise
     such Option or to convert or exchange such Convertible Securities shall
     have expired or terminated, the Exercise Price then in effect shall be
     readjusted to the Exercise Price which would have been in effect at the
     time of such expiration or termination if such Option or Convertible
     Securities, to the

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     extent outstanding immediately prior to such expiration or termination
     (other than in respect of the actual number of shares of Common Stock
     issued upon exercise, conversion or exchange thereof), had never been
     issued.

               (v) If any Common Stock, Options or Convertible Securities are
     issued, granted or sold for cash, the consideration received therefor for
     purposes of this Section 7(b) shall be the amount received by the Company
     therefor before deduction of commissions, underwriting discounts or
     allowances or other expenses paid or incurred by the Company in connection
     with such issuance, grant or sale. In case any Common Stock, Options or
     Convertible Securities are issued or sold for a consideration part or all
     of which shall be other than cash, the amount of the consideration other
     than cash received by the Company shall be the fair value of such
     consideration. If any Common Stock, Options or Convertible Securities are
     issued in connection with any acquisition, merger or consolidation in which
     the Company is the surviving corporation, the amount of consideration
     therefor shall be deemed to be the fair value of such portion of the net
     assets and business of the non-surviving entity which is attributable to
     such Common Stock, Options or Convertible Securities, as the case may be.
     The fair value of any consideration other than cash shall be determined in
     good faith by the Board of Directors, whose determination, in the absence
     of manifest error, but subject to the following provisions of this Section
     7(b)(v), shall be final and binding upon the Company, the Warrant Agent and
     the Holders of the Warrants. So long as the Initial Holders and their
     Affiliates are the beneficial and record owners of at least a majority of
     the Warrants then outstanding, the Company shall give prompt written notice
     to the Initial Holders that are Holders on the date of such notice of the
     determination of the Board of Directors with

                                       16

<PAGE>

     respect to the fair value of such consideration other than cash. If the
     Required Initial Holders object to such determination (whether or not in
     manifest error) by the Board of Directors of the fair value of such
     consideration by giving the Company written notice of such objection within
     ten Business Days after their receipt of the Company's written notice of
     such determination, and such objection is not withdrawn, the Company shall
     retain, at the Company's sole cost, an Independent Appraiser to determine
     the fair value of such consideration. The determination of such Independent
     Appraiser with respect to the fair value of such consideration, or, if the
     Company is not required to retain an Independent Appraiser pursuant to this
     Section 7(b)(v), but retains an Independent Appraiser pursuant to the
     Series A Certificate of Designation, the Series B Certificate of
     Designation or the Series B Warrant Agreement to determine the fair value
     of such consideration for purposes of the Series A Certificate of
     Designation, the Series B Certificate of Designation or the Series B
     Warrant Agreement, as the case may be, the determination of such other
     Independent Appraiser with respect to the fair value of such consideration,
     shall be final and binding upon the Company, the Warrant Agent and the
     Holders of the Warrants. Any written notice required to be given by the
     Company or the Required Initial Holders pursuant to this Section 7(b)(v)
     shall be given in the manner, and with the effect, provided in Section
     3(j).

          (c) No adjustment of the Exercise Price shall be made pursuant to
Section 7(a) or 7(b) upon the issuance, sale, grant, exercise, conversion,
exchange, reclassification, redemption or other retirement of any of the
following securities on or after the Issue Date:

               (i)  the Reorganization Common Stock;

               (ii) the Merger Common Stock;

                                       17

<PAGE>

               (iii) the Series B Preferred Stock, including the Series B
     Preferred Stock issuable as dividends pursuant to the Series B Certificate
     of Designation as in effect on the Amendment Date or otherwise issuable
     after the Amendment Date pursuant to the Series B Certificate of
     Designation as in effect on the Amendment Date, or any shares of Common
     Stock or other securities issuable or payable upon conversion of the Series
     B Preferred Stock pursuant to the Series B Certificate of Designation as in
     effect on the Amendment Date;

               (iv) any shares of Common Stock, Options or Convertible
     Securities issuable as a dividend or distribution on the Series B Preferred
     Stock in accordance with the Series B Certificate of Designation as in
     effect on the Amendment Date or any shares of Common Stock issuable or
     payable upon exercise of any such Options or upon conversion or exchange of
     any such Convertible Securities;

               (v) the Series B Warrants or any shares of Common Stock or other
     securities issuable or payable upon exercise or conversion of the Series B
     Warrants;

               (vi) the Series A Preferred Stock, including the Series A
     Preferred Stock issuable as dividends on the Series A Preferred Stock,
     issuable pursuant to the Series A Certificate of Designation as in effect
     on or prior to the Amendment Date, or any shares of Common Stock or other
     securities issuable or payable upon conversion of the Series A Preferred
     Stock pursuant to the Series A Certificate of Designation as in effect on
     or prior to the Amendment Date;

               (vii) any shares of Common Stock, Options or Convertible
     Securities issuable as a dividend or distribution on the Series A Preferred
     Stock in accordance with the Series A Certificate of Designation as in
     effect on or prior to the Amendment Date, or

                                       18

<PAGE>

     any shares of Common Stock issuable or payable upon exercise of any such
     Options or upon conversion or exchange of any such Convertible Securities;

               (viii) the Warrants or any shares of Common Stock or other
     securities issuable or payable upon exercise or conversion of the Warrants;

               (ix) any shares of Common Stock, Options or Convertible
     Securities issuable under (A) the Existing Benefit Plan as in effect on the
     Issue Date or (B) the Existing Benefit Plan as amended after the Issue Date
     and any Benefit Plan which becomes effective after the Issue Date, provided
     that any such amendment to the Existing Benefit Plan or the effectiveness
     of any such Benefit Plan is approved by the Board of Directors or by the
     compensation committee or other authorized committee of the Board of
     Directors (in either case with the affirmative vote or consent of the
     Series A Directors, if any, in each case whether or not serving on any such
     committee), or any shares of Common Stock issuable or payable upon exercise
     of any such Options or upon conversion or exchange of any such Convertible
     Securities;

               (x) any shares of Common Stock issued or deemed to have been
     issued in a transaction for which an adjustment of the Exercise Price is
     required pursuant to Section 7(d);

               (xi) any transaction referred to in Section 7(e); or

               (xii) any shares of Common Stock, Options or Convertible
     Securities issued in connection with the acquisition of all or part of
     another business or company, whether by merger, consolidation or otherwise,
     which is approved by the Board of Directors or by an authorized committee
     of the Board of Directors (in either case with the affirmative vote or
     consent of the Series A Directors, if any, in each case whether or not

                                       19

<PAGE>

     serving on any such committee), any shares of Common Stock issuable or
     payable upon exercise of any such Options or upon conversion or exchange of
     any such Convertible Securities, or any shares of Common Stock,
     payment-in-kind securities or other securities issuable as a dividend or
     distribution on any such shares of Common Stock, Options or Convertible
     Securities.

          (d) If a date of record should be fixed at any time, whether by the
Company or by operation of law, for the subdivision (by any stock split, stock
dividend, recapitalization, reorganization, reclassification or otherwise) of
the shares of Common Stock acquirable hereunder into a greater number of shares,
or for the determination of the holders of Common Stock entitled to receive a
dividend or other distribution payable in additional shares of Common Stock,
Convertible Securities or Options without payment of any consideration for the
additional shares of Common Stock, Convertible Securities or Options (including
the additional shares of Common Stock or Convertible Securities issuable upon
conversion or exercise of such Options), then, as of such date of record, the
Exercise Price in effect immediately prior to such date of record shall be
proportionately reduced (with the number of shares of Common Stock or
Convertible Securities issuable with respect to Options determined from time to
time in the manner provided for deemed issuances or sales of Common Stock in
Section 7.2(b)). If a date of record should be fixed at any time, whether by the
Company or by operation of law, for the combination (by reverse stock split,
recapitalization, reorganization, reclassification or otherwise) of the shares
of Common Stock acquirable hereunder into a smaller number of shares of Common
Stock, then, as of such date of record, the Exercise Price in effect immediately
prior to such date of record shall be proportionately increased.

                                       20

<PAGE>

          (e) If the Company at any time pays a dividend in property (other than
cash) or securities to all holders of the Common Stock, other than in a
transaction referred to in Section 7(d), then, after the date of record for
determining stockholders entitled to such dividend, each Holder of Warrants
shall be entitled, upon exercise thereof for the purchase of any or all of the
Warrant Shares subject thereto, to receive the amount of such property (other
than cash) or securities which would have been payable to such Holder if such
Holder had been the Holder, on the record date for the determination of
stockholders entitled to such dividend, of such Warrant Shares purchased upon
such exercise.

          (f) If an adjustment of the Exercise Price pursuant to Section 7(a),
7(b) or 7(d) shall become effective as of or after the record date for the
applicable Exercise Price Adjustment Event, but before the occurrence of such
Exercise Price Adjustment Event, the Company may elect to defer, until after the
occurrence of such Exercise Price Adjustment Event, (i) issuance to the Holder
of any Warrants exercised after such record date and before the occurrence of
such Exercise Price Adjustment Event the additional shares of Common Stock
issuable upon such exercise in excess of the number of shares issuable on the
basis of the Exercise Price in effect immediately prior to such record date and
(ii) payment to such Holder of any amount in cash in lieu of a fractional share
of Common Stock. The Company shall give written notice of any such election
within five Business Days to (i) the Warrant Agent and (ii) if the Holders of
the Warrants on the Issue Date or any of their Affiliates shall own beneficially
and of record Warrants as of the date of any such election, to such Holders and
any such Affiliates. Upon the request by the Company from time to time, the
Holders of the Warrants on the Issue Date shall certify to the Company the
number of Warrants, if any, then so beneficially owned by such Holders and their
Affiliates.

                                       21

<PAGE>

          (g) After the occurrence of any Exercise Price Adjustment Event
requiring adjustment of the Exercise Price, the Company shall give written
notice thereof to the Holders of the Warrants and to the Warrant Agent within
ten Business Days following the occurrence of such Exercise Price Adjustment
Event; provided that if an adjustment of the Exercise Price pursuant to Section
7(a), 7(b) or 7(d) shall become effective as of or after the record date for the
applicable Exercise Price Adjustment Event, but before the occurrence of such
Exercise Price Adjustment Event, the Company shall give such written notice
within ten Business Days following such record date or subsequent date. Such
notice shall state the Exercise Price and any change in the number of Warrant
Shares issuable upon exercise of the Warrants resulting from such Exercise Price
Adjustment Event and shall set forth in reasonable detail the method of
calculation and the facts upon which such calculation is based. Such calculation
shall be certified by an Officer of the Company. Notice of any Exercise Price
Adjustment Event resulting in an adjustment of the Exercise Price shall be
deemed given to the Holders of Warrants (but not to the Warrant Agent) (i) by
the Company's inclusion of the information specified in the second sentence of
this Section 7(g) in the Company's current report or next quarterly or annual
report filed with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934, as amended, or (ii) at the option of the
Company, by the Company's mailing to such Holders of a written notice containing
such information, in each case within the period specified in the first sentence
of this Section 7(g).

          (h) Anything in this Section 7 to the contrary notwithstanding, the
Company shall not be required to give effect to any adjustment of the Exercise
Price unless and until the net effect of one or more adjustments required
hereunder (each of which shall be carried forward until counted toward
adjustment), determined as provided therein, shall have resulted in a change

                                       22

<PAGE>

of the Exercise Price by at least 1%, and when the cumulative net effect of more
than one adjustment so determined shall be to change the Exercise Price by at
least 1%, such change of the Exercise Price shall thereupon be given effect.

          (i) Upon the occurrence of a Fundamental Change, there shall be no
adjustment of the Exercise Price and each Warrant then outstanding, without the
consent of any Holder of Warrants, shall become exercisable only into the kind
and amount of shares of Capital Stock or other securities (of the Company or
another issuer), cash or other property receivable upon such Fundamental Change
by a holder of the number of shares of Common Stock into which such Warrants
could have been exercised immediately prior to the effective date of such
Fundamental Change, assuming such holder of Common Stock (x) is not a Person (or
a Related Entity of a Person) with which the Company consolidated, into which
the Company merged or which merged into the Company, or to or with which the
applicable sale, conveyance, lease, exchange, transfer or other transaction
constituting such Fundamental Change was effected, and (y) failed to exercise
the holder's rights of election, if any, as to the kind of amount of Capital
Stock or other securities, cash or other property receivable upon such
Fundamental Change, provided that, if such Fundamental Change solely provides
for cash payments to holders of Common Stock at a price that is not greater than
the current Exercise Price, a Holder of Warrants shall not have any right to
receive such consideration and its Warrants shall be automatically cancelled
upon consummation thereof. In any such event, effective provisions shall be made
in the certificate or articles of incorporation of the resulting or surviving
corporation, in any contract of sale, conveyance, lease, exchange or transfer,
or otherwise so that any resulting or surviving corporation or any Transferee in
connection with such Fundamental Change shall expressly assume the obligation to
deliver, to the Holders of the Warrants, such shares of Capital

                                       23

<PAGE>

Stock, or other securities, cash or other property (i) upon exercise of the
Warrants, if the Warrants shall remain outstanding following such Fundamental
Change, or (ii) upon the consummation of such Fundamental Change or thereafter
as provided in such effective provisions, if the Warrants shall not remain
outstanding following such Fundamental Change. The provisions of this Section
7(i) similarly shall apply to successive Fundamental Changes and shall be the
sole right of Holders of Warrants in connection with any Fundamental Change. The
Company shall notify the Warrant Agent in writing of the occurrence of any
Fundamental Change, and the Warrant Agent shall not be deemed to have knowledge
of any such Fundamental Change unless and until it has actually received written
notice thereof.

          (j) All Warrants originally issued by the Company subsequent to any
adjustment made to the Exercise Price hereunder shall evidence the right to
purchase, at the adjusted Exercise Price, the number of Warrant Shares for which
such Warrants are exercisable after giving effect to any adjustment thereto
pursuant to Section 7(k) in connection with such adjustment of the Exercise
Price, all subject to further adjustment as provided herein.

          (k) Upon the occurrence of each Exercise Price Adjustment Event (or if
an adjustment of the Exercise Price pursuant to Section 7(a), 7(b) or 7(d) shall
become effective as of or after the record date for such Exercise Price
Adjustment Event, but before the occurrence of such Exercise Price Adjustment
Event, as of or after such record date, as the case may be), each Warrant
outstanding immediately prior to such Exercise Price Adjustment Event (or
immediately prior to such other date as of which the Exercise Price shall have
been adjusted, as aforesaid) shall thereafter evidence the right to purchase, at
the adjusted Exercise Price, that number of shares of Common Stock (calculated
to the nearest one-one hundredth of a share) obtained by (i) multiplying (x) the
number of Warrant Shares covered by such Warrant immediately prior to

                                       24

<PAGE>

such adjustment of the Exercise Price by (y) the Exercise Price in effect
immediately prior to such adjustment of the Exercise Price and (ii) dividing the
product so obtained by the Exercise Price in effect immediately after such
adjustment of the Exercise Price.

          (l) Irrespective of any adjustments of the Exercise Price or in the
number or kind of shares purchasable upon the exercise of the Warrants, Warrants
theretofore and thereafter issued may continue to express the Exercise Price per
share and the number of shares which were expressed upon the initial Warrant
Certificates issued hereunder.

          (m) The Company shall calculate or determine any adjustments with
respect to the Exercise Price and the kind or amount of shares or other
securities or any property receivable by Holders upon the exercise of Warrants
required from time to time under this Section 7 in accordance with its
provisions and shall give written notice of each such calculation or
determination (including any determination pursuant to the procedures set forth
in Section 7(b)(v), in final form) to the Warrant Agent as provided herein, as
required by the Warrant Agent to perform its duties expressly set forth herein,
or as otherwise requested by the Warrant Agent.

SECTION 8. FRACTIONAL INTERESTS.

          The Company shall not be required to issue fractional Warrant Shares
upon the exercise of Warrants. If more than one Warrant shall be presented for
exercise in full at the same time by the same Holder, the number of full Warrant
Shares which shall be issuable upon the exercise thereof shall be computed on
the basis of the aggregate number of Warrant Shares purchasable upon exercise of
the Warrants so presented. If any fraction of a Warrant Share would, except for
the provisions of this Section 8, be issuable upon the exercise of any Warrants
(or specified portion thereof), the Company may, in its sole discretion, (i)
round such fractional Warrant Share up to the nearest whole number or (ii) pay
an amount in cash equal to the Closing

                                       25

<PAGE>

Price per Warrant Share, as determined on the Business Day immediately preceding
the date the Warrant is presented for exercise, multiplied by such fraction,
rounded up to the nearest whole cent.

SECTION 9. WARRANT AGENT.

     9.1  Duties and Obligations; Limitations of Liability

          The Warrant Agent undertakes only the duties and obligations expressly
imposed by this Agreement (and no implied duties or obligations) upon the
following terms and conditions, by all of which the Company and the Holders of
Warrants, by their acceptance thereof, shall be bound:

          (a) The Warrant Agent shall not, by countersigning Warrant
Certificates or by any other act hereunder, be deemed to make any
representations as to validity or authorization of, and shall incur no liability
as a result of, (i) the Warrants or the Warrant Certificates (except as to its
countersignature thereon), (ii) any shares or other securities or any property
delivered upon exercise of any Warrant, (iii) the accuracy of the computation of
the number or kind or amount of shares or other securities or any property
deliverable upon exercise of any Warrant or (iv) the correctness of any of the
representations of the Company made in any such Warrant Certificate. The Warrant
Agent shall not at any time have any duty to calculate or determine whether any
facts exist that may require any adjustments pursuant to Section 7 with respect
to the Exercise Price or the kind and amount of shares or other securities or
any property receivable by Holders upon the exercise of Warrants required from
time to time. The Warrant Agent shall have no duty or responsibility to
determine or verify, and shall incur no liability as a result of any failure to
determine or verify, the accuracy or correctness of any such calculation or
determination or with respect to the methods employed in making such calculation
or determination. The Warrant Agent shall not be accountable with respect to,
and shall incur no

                                       26

<PAGE>

liability as a result of, the validity or value (or the kind or amount) of any
Warrant Shares or of other securities or any property which may at any time be
issued or delivered upon the exercise of any Warrant or upon any adjustment
pursuant to Section 7, and it makes no representation with respect thereto. The
Warrant Agent shall not be liable or responsible for any failure of the Company
to make any cash payment or to issue, transfer or deliver any Warrant Shares or
stock certificates or other securities or property upon the surrender of any
Warrant Certificate for the purpose of exercise or upon any adjustment pursuant
to Section 7.

          (b) The Warrant Agent shall not (i) be liable for any recital or
statement of fact contained herein or in the Warrant Certificates or for any
action taken, suffered or omitted by it on the belief that any Warrant
Certificate or any other documents or any signatures are genuine or properly
authorized, (ii) be responsible for any failure on the part of the Company to
comply with any of its covenants and obligations contained in this Agreement or
in the Warrant Certificates or (iii) be liable for any act or omission in
connection with this Agreement except for its own gross negligence or willful
misconduct (which gross negligence or willful misconduct must be determined by a
final, nonappealable order, judgment, decree or ruling of a court of competent
jurisdiction). Anything in this Agreement to the contrary notwithstanding, in no
event shall the Warrant Agent be liable for special, punitive, indirect,
incidental or consequential loss or damage of any kind whatsoever (including,
but not limited, to lost profits), even if the Warrant Agent has been advised of
the possibility of such loss or damage. Any and all liability of the Warrant
Agent under this Agreement shall be limited to the higher of (i) the amount of
fees paid by the Company to the Warrant Agent pursuant to this Agreement or (ii)
$50,000.

          (c) The Warrant Agent is hereby authorized to accept and is protected
in accepting advice or instructions with respect to the performance of its
duties hereunder by order,

                                       27

<PAGE>

instruction or other written notice given by the Company or by one or more
Holders in accordance with the provisions hereof and to apply to any Officer of
the Company named in any such order, instruction or written notice for advice or
instructions (which instructions shall be given in writing when requested), and
the Warrant Agent shall not be liable for any action taken, suffered or omitted
to be taken by it in accordance with the advice or instructions in any such
order, instruction or written notice. The Warrant Agent shall be fully protected
and authorized in relying upon the most recent instructions received by any such
Officer of the Company. The Warrant Agent shall not be deemed to have knowledge
of any event of which it was supposed to receive notice thereof or an order or
instruction in regard to hereunder, and the Warrant Agent shall be fully
protected and shall incur no liability for failing to take any action in
connection therewith unless and until it has received such order, instruction or
notice.

          (d) Whenever in the performance of its duties under this Agreement the
Warrant Agent shall deem it necessary or desirable that any fact or matter be
proved or established by the Company prior to taking, omitting or suffering any
action hereunder, such fact or matter (unless other evidence in respect thereof
be herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any Officer of the Company and delivered
to the Warrant Agent, and such certificate shall be full and complete
authorization and protection to the Warrant Agent and the Warrant Agent shall
incur no liability for or in respect of any action taken, omitted or suffered by
it under the provisions of this Agreement in reliance upon such certificate.

          (e) In the event the Warrant Agent has any questions or uncertainty as
to what action it should take under this Agreement, the Warrant Agent is hereby
authorized and directed to accept advice and instructions with respect to the
performance of its duties hereunder from

                                       28

<PAGE>

any Officer of the Company, and to apply to any such Officer for advice or
instructions in connection with its duties. Such advice and instructions of any
Officer of the Company shall be full authorization and protection to the Warrant
Agent, and the Warrant Agent shall not be liable for any action taken, omitted
or suffered by it in accordance with advice or instructions, for any delay in
acting while waiting for such advice or instructions, or in refraining from
taking any action prior to receiving such advice or instructions.

          (f) The Warrant Agent may execute and exercise any of the rights and
powers hereby vested in it or perform any duty hereunder either itself (through
its officers, directors and employees) or by or through its attorneys or agents,
and the Warrant Agent shall not be liable or accountable for any act, default,
neglect or misconduct of any such attorneys or agents or for any loss to the
Company or any other Person resulting from any such act, default, neglect or
misconduct in the absence of gross negligence or willful misconduct of the
Warrant Agent in the selection and in the continued employment of any such
attorney or agent (which gross negligence or willful misconduct must be
determined by a final, nonappealable order, judgment, decree or ruling of a
court of competent jurisdiction).

          (g) The Warrant Agent shall not be under any obligation or duty to
institute, appear in or defend any action, suit or legal proceeding in respect
hereof, unless first indemnified to its satisfaction, but this provision shall
not affect the power of the Warrant Agent to take such action as the Warrant
Agent may consider proper, whether with or without such indemnity. The Warrant
Agent shall promptly notify the Company in writing of any claim made or action,
suit or proceeding instituted against it arising out of or in connection with
this Agreement.

          (h) The Company shall perform, execute, acknowledge and deliver or
cause to be performed, executed, acknowledged and delivered all such further
acts, instruments and

                                       29

<PAGE>

assurances as may reasonably be required by the Warrant Agent in order to enable
it to carry out or perform its duties and obligations under this Agreement.

          (i) The Warrant Agent shall act solely as agent of the Company
hereunder and does not assume any obligation or relationship of agency or trust
for or with any of the Holders or any beneficial owners of Warrants. The Warrant
Agent shall not be liable except for the failure to perform such duties as are
specifically set forth herein or specifically set forth in the Warrant
Certificates, and no implied covenants or obligations shall be read into this
Agreement against the Warrant Agent, whose duties and obligations shall be
determined solely by the express provisions hereof or the express provisions of
the Warrant Certificates.

          (j) The Company agrees promptly to pay the Warrant Agent from time to
time, on demand of the Warrant Agent, compensation for its services hereunder as
the Company and the Warrant Agent may agree from time to time, and to reimburse
the Warrant Agent for the reasonable costs, expenses and disbursements,
including reasonable counsel fees and expenses incurred in connection with the
preparation, delivery, amendment, execution and administration of this Agreement
and the exercise and performance of its duties hereunder. The Company agrees to
indemnify the Warrant Agent for and save it harmless against any losses,
liabilities, settlements, costs, damages, fines, judgments, penalties, demands,
claims and expenses arising out of or in connection with the acceptance and
administration of this Agreement, including reasonable costs, legal fees and
expenses of investigating or defending any claim of such liability, except that
the Company shall have no liability hereunder to the extent that any of the
foregoing results from the Warrant Agent's own gross negligence or willful
misconduct (which gross negligence or willful misconduct must be determined by a
final, nonappealable order,

                                       30

<PAGE>

judgment, decree or ruling of a court of competent jurisdiction). The costs and
expenses incurred in enforcing this right of indemnification shall be paid by
the Company.

          (k) The Warrant Agent may at any time consult with legal counsel
satisfactory to it (who may be internal legal counsel for the Company), and the
advice or opinion of such counsel shall be full and complete authorization and
protection to the Warrant Agent and the Warrant Agent shall incur no liability
or responsibility to the Company or to any Holder for any action taken, suffered
or omitted by it in accordance with the opinion or advice of such counsel.

          (l) The Warrant Agent shall not be deemed to have knowledge of any
Exercise Price Adjustment Event, any adjustment to the Exercise Price, any
change in the number of Warrant Shares issuable upon exercise of the Warrants or
the kind or amount of shares or other securities or any property receivable by
Holders upon the exercise of Warrants, unless and until it has actually received
written notice from the Company thereof, and the Warrant Agent is hereby
instructed and authorized to rely conclusively on any such written notice.

          (m) The provisions of this Section 9.1 shall survive the termination
of this Agreement, the termination, exercise or expiration of the Warrants, and
the resignation or removal of the Warrant Agent.

     9.2  Merger, Consolidation or Change of Name of Warrant Agent.

          (a) Any Person into which the Warrant Agent may be merged or with
which it may be consolidated, or any Person resulting from any merger or
consolidation to which the Warrant Agent shall be a party, or any Person
succeeding to all or substantially all of the business of the Warrant Agent,
shall be the successor to the Warrant Agent hereunder without the execution or
filing of any paper or any further act on the part of any of the parties hereto,
provided that such Person would be eligible for appointment as a successor
warrant agent under

                                       31

<PAGE>

the provisions of Section 9.3. In case at the time such successor to the Warrant
Agent shall succeed to the agency created by this Agreement, and in case at that
time any of the Warrant Certificates shall have been countersigned but not
delivered, any such successor to the Warrant Agent may adopt the
countersignature of the original Warrant Agent; and in case at that time any of
the Warrant Certificates shall not have been countersigned, any successor to the
Warrant Agent may countersign such Warrant Certificates either in the name of
the predecessor Warrant Agent or in the name of the successor to the Warrant
Agent; and in all such cases such Warrant Certificates shall have the full force
and effect provided in the Warrant Certificates and in this Agreement.

          (b) In case at any time the name of the Warrant Agent shall be changed
and at such time any of the Warrant Certificates shall have been countersigned
but not delivered, the Warrant Agent whose name has been changed may adopt the
countersignature under its prior name, and in case at that time any of the
Warrant Certificates shall not have been countersigned, the Warrant Agent may
countersign such Warrant Certificates either in its prior name or in its changed
name, and in all such cases such Warrant Certificates shall have the full force
and effect provided in the Warrant Certificates and in this Agreement.

     9.3  Change of Warrant Agent.

          The Warrant Agent may resign its duties and be discharged from all
further duties and liability hereunder after giving 30 days' prior written
notice to the Company. If the Warrant Agent shall resign pursuant to the
preceding sentence or if the Warrant Agent shall become incapable of acting as
Warrant Agent, the Company shall appoint a successor to such Warrant Agent. If
the Company shall fail to make such appointment within a period of 30 days after
it has been notified in writing of such incapacity or resignation by the Warrant
Agent or by the registered holder of a Warrant Certificate, then the Warrant
Agent or any registered holder of any

                                       32

<PAGE>

Warrant Certificate may apply at the expense of the Company to any court of
competent jurisdiction for the appointment of a successor to the Warrant Agent.
Pending appointment of a successor to such Warrant Agent, either by the Company
or by such a court, the duties of the Warrant Agent shall be carried out by the
Company. The Holders of a majority of the then outstanding Warrants shall be
entitled at any time to remove the Warrant Agent and appoint a successor to such
Warrant Agent. Any successor to the Warrant Agent need not be approved by the
Company or the former Warrant Agent. After appointment, the successor to the
Warrant Agent shall be vested with the same powers, rights, duties and
responsibilities as if such successor had been originally named as Warrant Agent
without further act or deed; provided that the former Warrant Agent upon payment
of all amounts owed to it shall deliver and transfer to the successor to the
Warrant Agent any property at the time held by it hereunder and execute and
deliver any further assurance, conveyance, act or deed necessary for the
purpose. Failure to give any notice provided for in this Section 9.3, however,
or any defect therein, shall not affect the legality or validity of the
appointment of a successor to the Warrant Agent.

SECTION 10. TRANSFER; REPLACEMENT; CANCELLATION.

     10.1 Transfer.

          (a) The transfer of beneficial interests in the Global Warrants shall
be effected through the Depositary, in accordance with the provisions of this
Warrant Agreement and the Applicable Procedures.

          (b) Subject to any applicable provisions of the Governance Agreement,
a sale, pledge, transfer, assignment or other disposition (each, a "Transfer")
of a beneficial interest in any Restricted Global Warrant or the Transfer of a
Restricted Definitive Warrant by a Holder may be made to a Person if:

                                       33

<PAGE>

               (i) such Transfer is made pursuant to an effective registration
     statement under the Securities Act; or

               (ii) such Holder delivers to the Company (A) at the Company's
     request, an opinion of counsel to such Holder, which shall be in a form,
     substance and scope customary for opinions in comparable transactions, as
     reasonably determined by the Company, to the effect that such Warrant or
     the Warrant Shares or other securities issuable upon exercise thereof may
     be Transferred without registration under the Securities Act and (B) an
     investment letter, substantially in the form of Exhibit C hereto, signed by
     the proposed transferee.

          (c) The following legends (or legends substantially similar thereto)
shall appear on the face of the Warrants issued under this Warrant Agreement or
the certificates representing the Restricted Warrant Shares issuable upon
exercise thereof, as indicated below, unless specifically stated otherwise in
the applicable provisions of this Warrant Agreement.

               (i) Private Placement Legend. Each Restricted Global Warrant and
     each Restrictive Definitive Warrant shall bear a legend in substantially
     the following form:

               "THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
          "SECURITIES ACT"), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND
          ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT AND
          SUCH LAWS. THE SECURITIES MAY NOT BE SOLD, PLEDGED, TRANSFERRED,
          ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN A TRANSACTION

                                       34

<PAGE>

          WHICH IS EXEMPT UNDER THE PROVISIONS OF THE SECURITIES ACT AND ANY
          APPLICABLE STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE
          REGISTRATION STATEMENT OR IN A TRANSACTION OTHERWISE IN COMPLIANCE
          WITH APPLICABLE FEDERAL AND STATE SECURITIES LAWS. THE COMPANY
          RESERVES THE RIGHT PRIOR TO ANY SUCH TRANSACTION TO REQUIRE AN OPINION
          OF COUNSEL TO THE HOLDER OF THE SECURITIES SATISFACTORY TO IT WITH
          RESPECT TO COMPLIANCE WITH THE FOREGOING RESTRICTIONS."

               (ii) Global Warrant Legend. Each Global Warrant shall bear a
     legend in substantially the following form:

               "THIS GLOBAL WARRANT IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
          WARRANT AGREEMENT GOVERNING THIS WARRANT) OR ITS NOMINEE IN CUSTODY
          FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
          TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE
          WARRANT AGENT MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED BY THE
          DEPOSITARY IN ORDER FOR IT TO ACCEPT THE WARRANTS FOR ITS BOOK-ENTRY
          SETTLEMENT SYSTEM, (II) THIS GLOBAL WARRANT MAY BE DELIVERED TO THE
          WARRANT AGENT FOR CANCELLATION PURSUANT TO SECTION 10.4 OF THE WARRANT
          AGREEMENT AND (III) THIS GLOBAL WARRANT MAY BE

                                       35

<PAGE>

          TRANSFERRED TO A SUCCESSOR DEPOSITARY ONLY WITH THE PRIOR WRITTEN
          CONSENT OF ITC/\DELTACOM, INC."

               (iii) Restricted Warrant Shares Legend. Each certificate
     representing Restricted Warrant Shares shall bear a legend in substantially
     the following form:

               "THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
          "SECURITIES ACT"), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND
          ARE SUBJECT TO RESTRICTIONS ON TRANSFER UNDER THE SECURITIES ACT AND
          SUCH LAWS. THE SECURITIES MAY NOT BE SOLD, PLEDGED, TRANSFERRED,
          ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN A TRANSACTION WHICH IS
          EXEMPT UNDER THE PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE
          STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE REGISTRATION
          STATEMENT OR IN A TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE
          FEDERAL AND STATE SECURITIES LAWS. THE COMPANY RESERVES THE RIGHT
          PRIOR TO ANY SUCH TRANSACTION TO REQUIRE AN OPINION OF COUNSEL TO THE
          HOLDER OF THE SECURITIES SATISFACTORY TO IT WITH RESPECT TO COMPLIANCE
          WITH THE FOREGOING RESTRICTIONS."

          (d) At such time as all beneficial interests in a particular Global
Warrant have been exercised or exchanged for Definitive Warrants or a particular
Global Warrant has been exercised, redeemed, repurchased or cancelled in whole
and not in part, each such Global

                                       36

<PAGE>

Warrant shall be returned to or retained and canceled by the Warrant Agent in
accordance with Section 10.4. At any time prior to such cancellation, if any
beneficial interest in a Global Warrant is exercised or exchanged for or
transferred to a Person who shall take delivery thereof in the form of a
beneficial interest in another Global Warrant or for Definitive Warrants, the
amount of Warrants represented by such Global Warrant shall be reduced
accordingly and, upon receipt by the Warrant Agent of specific written
instruction from the Company, an endorsement shall be made on such Global
Warrant by the Warrant Agent or by the Depositary at the direction of the
Warrant Agent (which shall be required so to act only upon direction by the
Company) to reflect such reduction; and if the beneficial interest is being
exchanged for or transferred to a Person who shall take delivery thereof in the
form of a beneficial interest in another Global Warrant, such other Global
Warrant shall be increased accordingly and, upon receipt by the Warrant Agent of
specific written instruction from the Company, an endorsement shall be made on
such Global Warrant by the Warrant Agent or by the Depositary at the direction
of the Warrant Agent (which shall be required so to act only upon direction by
the Company) to reflect such increase.

          (e) The following additional provisions shall apply to transfers and
exchanges of Warrants hereunder:

               (i) To permit registrations of transfers and exchanges, the
     Company shall execute and the Warrant Agent shall countersign Global
     Warrants and Definitive Warrants upon the Company's written order
     containing specific instruction or at the Warrant Registrar's written
     request containing specific instruction.

               (ii) No service charge shall be made to a holder of a beneficial
     interest in a Global Warrant or to a Holder of a Definitive Warrant for any
     registration of transfer

                                       37

<PAGE>

     or exchange, but the Company may require payment of a sum sufficient to
     cover any transfer tax or similar governmental charge payable in connection
     therewith.

               (iii) All Global Warrants and Definitive Warrants issued upon any
     registration of transfer or exchange of Global Warrants or Definitive
     Warrants shall be the duly authorized, executed and issued warrants for
     Common Stock of the Company, not subject to any preemptive rights, and
     entitled to the same benefits under this Warrant Agreement, as the Global
     Warrants or Definitive Warrants surrendered upon such registration of
     transfer or exchange.

               (iv) Prior to due presentment for the registration of a transfer
     of any Warrant, the Warrant Agent and the Company may deem and treat the
     Person in whose name any Warrant is registered as the absolute owner of
     such Warrant for all purposes and neither the Warrant Agent nor the Company
     shall be affected by notice to the contrary.

               (v) The Warrant Agent shall countersign Global Warrants and
     Definitive Warrants in accordance with the provisions of Section 2.2.

          (f) All certifications, certificates and opinions of counsel required
to be submitted to the Warrant Registrar pursuant to this Section 10 to effect a
registration of transfer or exchange may be submitted by facsimile.

     10.2 Replacement Warrants.

          If any mutilated Warrant Certificate is surrendered to the Warrant
Agent or the Company and the Warrant Agent receives evidence to its satisfaction
of the destruction, loss or theft of any Warrant Certificate, the Company shall
issue and the Warrant Agent, upon receipt of a Warrant Countersignature Order,
shall countersign a replacement Warrant Certificate if the Warrant Agent's
requirements are met. If required by the Warrant Agent or the Company, an

                                       38

<PAGE>

indemnity bond must be supplied by the Holder that is sufficient in the judgment
of the Warrant Agent and the Company to protect the Company, the Warrant Agent
and any agent thereof for purposes of the countersignature from any loss that
any of them may suffer if a Warrant Certificate is replaced. The Company may
charge for its expenses in replacing a Warrant Certificate.

          Every replacement Warrant is an additional warrant of the Company and
shall be entitled to all of the benefits of this Warrant Agreement equally and
proportionately with all other Warrants duly issued hereunder.

     10.3 Temporary Warrants.

          Until certificates representing Warrants are ready for delivery, the
Company may prepare and the Warrant Agent, upon receipt of a Warrant
Countersignature Order, shall issue temporary Warrant Certificates. Temporary
Warrants shall be substantially in the form of certificated Warrants but may
have variations that the Company considers appropriate for temporary Warrants
and as shall be reasonably acceptable to the Warrant Agent (but which shall not
affect the rights, duties or obligations of the Warrant Agent as set forth in
this Agreement). Without unreasonable delay, the Company shall prepare and the
Warrant Agent shall countersign definitive Warrant Certificates in exchange for
temporary Warrant Certificates.

          Holders of temporary Warrants shall be entitled to all of the benefits
of this Warrant Agreement.

     10.4 Cancellation.

          The Company at any time may deliver Warrants to the Warrant Agent for
cancellation. The Warrant Registrar shall forward to the Warrant Agent any
Warrants surrendered to them for registration of transfer, exchange or exercise.
The Warrant Agent and no one else shall cancel all Warrants surrendered for
registration of transfer, exchange, exercise,

                                       39

<PAGE>

replacement or cancellation and shall dispose of such canceled Warrants in its
customary manner. The Warrant Registrar shall provide the Company with a list of
all Warrants that have been cancelled. The Company may not issue new Warrants to
replace Warrants that have been exercised or that have been delivered to the
Warrant Agent for cancellation.

SECTION 11. NOTICES TO COMPANY AND WARRANT AGENT.

          Any notice or communication authorized by this Agreement to be given
or made by the Warrant Agent or by the Holder of any Warrant or by the Company
to the Company or the Warrant Agent, as the case may be, shall be sufficiently
given or made if in writing and delivered in person, mailed by first-class mail
or sent by facsimile transmission addressed as follows:

          If to the Company:

               ITC/\DeltaCom, Inc.
               1791 O.G. Skinner Drive
               West Point, Georgia 31833
               Facsimile No.: (256) 382-3936
               Attention: General Counsel

          If to the Warrant Agent:

               Mellon Investor Services LLC
               200 Galleria Parkway, Suite 1900
               Atlanta, Georgia 30339
               Attention: Client Services Manager
               Fax: 770-933-8336
               Attention: Relationship Manager

          With a copy to:

               Mellon Investor Services LLC
               85 Challenger Road
               Ridgefield Park, New Jersey 07660-2108
               Facsimile No.: (201) 296-4004
               Attention: General Counsel

                                       40

<PAGE>

          In case the Company shall fail to maintain such office or agency or
shall fail to give such notice of the location or of any change in the location
thereof, presentations may be made and notices and demands may be served at the
principal office of the Warrant Agent.

          The Company or the Warrant Agent by notice to the other may designate
additional or different addresses for subsequent notices or communications.

          Any notice or communication mailed to a Holder shall be mailed to such
Holder at its address as it appears on the Warrant Register by first-class mail
and shall be sufficiently given to such Holder if so mailed within the time
prescribed. Copies of any such communication or notice to a Holder shall also be
mailed to the Warrant Agent at the same time.

          Failure to transmit a notice or communication to a Holder as provided
herein or any defect in any such notice shall not affect its sufficiency with
respect to other Holders. Except for a notice to the Warrant Agent, which is
deemed given only when received, and except as otherwise provided in this
Agreement, if a notice or communication is mailed in the manner provided in this
Section 11, it is duly given, whether or not the addressee receives it.

          Where this Agreement provides for notice in any manner, such notice
may be waived in writing by the Person entitled to receive such notice, either
before or after the event, and such waiver shall be the equivalent of such
notice. Waivers of notice by Holders shall be filed with the Warrant Agent, but
such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such waiver.

          In case by reason of the suspension of regular mail service or by
reason of any other cause it shall be impracticable to give such notice by mail,
then such notification as shall be made with the approval of the Warrant Agent
shall constitute a sufficient notification for every purpose hereunder.

                                       41

<PAGE>

SECTION 12. SUPPLEMENTS AND AMENDMENTS.

          (a) The Warrant Agent may, without the consent or concurrence of the
Holders of the Warrants, by supplemental agreement or otherwise, join with the
Company in making any changes or corrections in this Agreement that (i) are
required to cure any ambiguity or to correct any defect or inconsistent
provision or clerical omission or mistake or manifest error herein contained,
provided that such changes or corrections do not and will not adversely affect,
alter or change the rights of the Holders of Warrants, (ii) add to the covenants
and agreements of the Company in this Agreement further covenants and agreements
of the Company thereafter to be observed, or surrender any rights or power
reserved to or conferred upon the Company in this Agreement, provided that such
changes or corrections do not and will not adversely affect, alter or change the
rights of the Holders of Warrants, or (iii) will not, in the good faith opinion
of the Board of Directors, as evidenced by a resolution thereof, adversely
affect, alter or change the rights of the Holders of Warrants in any material
respect. Amendments or supplements that do not meet the requirements of the
preceding sentence shall require the written consent of the Holders of a
majority of the then outstanding Warrants; provided, however, that the consent
of each Holder is required for any amendment or supplement pursuant to which the
Exercise Price would be increased or the number of shares of Common Stock
purchasable upon exercise of Warrants would be decreased (other than pursuant to
adjustments as provided in Section 7).

          (b) So long as the Initial Holders and their Affiliates are the
beneficial and record owners of at least a majority of the Warrants then
outstanding, prior to amending the Series B Warrant Agreement in such a manner
as to provide the Holders of the Series B Warrants with rights in addition or
superior to those provided to the Holders of the Warrants under this Agreement,
the Company shall give written notice of any such proposed amendment (the
"Proposed Series B Amendment"), which shall include the text of the Proposed
Series B

                                       42

<PAGE>

Amendment, to the Initial Holders that are Holders on the date of such
notice (with a copy to the Warrant Agent) and shall offer to the Required
Initial Holders to amend this Agreement (subject to any consent requirements
imposed by this Agreement) so as to provide the Holders of the Warrants with
rights no less favorable than the rights to be provided to the Holders of the
Series B Warrants in the Proposed Series B Amendment. If, within ten Business
Days after the receipt by such Initial Holders of such written notice from the
Company, the Required Initial Holders shall give written notice to the Company
(with a copy to the Warrant Agent) that they seek to have this Agreement amended
to provide the Holders of the Warrants with such rights, the Company shall not
amend the Series B Warrant Agreement to provide for such rights unless,
concurrently with, or immediately prior to, the effectiveness of the Proposed
Series B Amendment, the Company shall amend this Agreement to provide such
rights to the Holders of the Warrants. If within the period of ten Business Days
described in the immediately preceding sentence, the Required Initial Holders do
not so provide notice to the Company that they seek to have this Agreement so
amended, or if the Holders of the Warrants do not approve and consent to such an
amendment to this Agreement, the Company shall be deemed to have complied with
this Section 12(b) with respect to the Proposed Series B Amendment, and the
Company shall then have the right to amend the Series B Warrant Agreement as
provided in the Proposed Series B Amendment without so amending this Agreement.
In no event shall the failure of the Required Initial Holders to seek to have
this Agreement amended under this Section 12(b) with respect to any Proposed
Series B Amendment affect the applicability of this Section 12(b) with respect
to any subsequent Proposed Series B Amendment. Any written notice required to be
given by the Company or the Required Initial Holders pursuant to this Section
12(b) shall be given in the manner, and with the effect provided in, Section
3(f).

                                       43

<PAGE>

SECTION 13. SUCCESSORS.

          All the covenants and provisions of this Agreement by or for the
benefit of the Company or the Warrant Agent shall bind and inure to the benefit
of their respective successors and assigns hereunder; provided that, except as
otherwise specifically provided in this Agreement, neither the Company nor the
Warrant Agent may assign any of its rights or obligations hereunder (other than
any such assignment by operation of law).

SECTION 14. TERMINATION.

          This Agreement shall terminate at 5:00 p.m., New York City time, on
the Expiration Date. Notwithstanding the foregoing, this Agreement shall
terminate on any earlier date if all Warrants have been exercised. The
provisions of Sections 2.3, 9 and 10 shall survive such termination.

SECTION 15. CERTAIN DEFINITIONS.

          As used in this Agreement, the following terms shall have the
following respective meanings:

          "Affiliate" has the meaning as in Rule 12b-2 under the Securities
Exchange Act of 1934, as amended.

          "Amendment Date" means October 6, 2003.

          "Applicable Procedures" means, with respect to any transfer or
exchange of or for beneficial interests in any Global Warrant, the rules and
procedures of the Depositary that apply to such transfer or exchange.

          "Beneficially own" and "beneficial owner" have the same meaning as in
Rule 13d-3 under the Securities Exchange Act of 1934, as amended.

          "Board of Directors" means the Board of Directors of the Company.

                                       44

<PAGE>

          "Benefit Plan" means any stock option, restricted stock, stock
incentive, deferred compensation, profit sharing, defined benefit or other
benefit plan of the Company or any of its subsidiaries.

          "Business Day" means any day other than a Saturday, a Sunday or a day
on which banking institutions in New Jersey or Georgia are authorized by law,
regulation or executive order to remain closed.

          "Capital Stock" means any and all shares, interests, participations,
rights or other equivalents (however designated) of corporate stock or
partnership or membership interests, whether common or preferred.

          "Closing Price" means, with respect to the Common Stock, on any date,
(i) the last sales price on the NASDAQ, the OTC Bulletin Board, the NASDAQ
Bulletin Board Exchange or the principal securities exchange or other securities
exchange or other securities market on which the Common Stock is then traded, or
(ii) if the Common Stock is so traded, but not so reported, the average of the
last bid and ask prices, as those prices are reported on the NASDAQ, the OTC
Bulletin Board, the NASDAQ Bulletin Board Exchange or the principal securities
exchange or other securities exchange or other securities market on which the
Common Stock is then traded, or (iii) if the Common Stock is not listed or
authorized for trading on the NASDAQ, the OTC Bulletin Board, the NASDAQ
Bulletin Board Exchange or any securities exchange or comparable securities
market, the average of the closing bid and ask prices as furnished by two
members of the National Association of Securities Dealers, Inc. selected from
time to time by the Board of Directors for that purpose. If the Common Stock is
not listed and traded in any manner that the quotations referred to above are
available for the

                                       45

<PAGE>

period required hereunder, the Closing Price per share shall be deemed to be the
fair value per share of such Common Stock as determined by the Board of
Directors.

          "Common Stock" has the meaning specified in the preamble hereto.

          "Common Stock Deemed Outstanding" means, on any date of determination,
the number of shares of Common Stock actually outstanding, plus the maximum
total number of shares of Common Stock issuable as of the date of such
determination upon the exercise of any then outstanding Options (including,
without limitation, the Warrants and the Series B Warrants and any Options
outstanding under the Existing Benefit Plan or any other Benefit Plan) or
issuable as of such date of determination upon conversion or exchange of any
then outstanding Convertible Securities (including, without limitation, the
Series A Preferred Stock and the Series B Preferred Stock), whether or not such
Options or Convertible Securities are actually exercisable, convertible or
exchangeable at such time, without duplication.

          "Company" has the meaning specified in the first paragraph hereof.

          "Convertible Securities" has the meaning specified in Section 7(b).

          "Definitive Warrants" has the meaning specified in Section 2.1(b).

          "Depositary" means, with respect to the Warrants issuable or issued in
whole or in part in global form, the Person specified in Section 2.3 as the
Depositary with respect to the Warrants, and any and all successors thereto
appointed as Depositary hereunder.

          "Dilutive Issuance" has the meaning specified in Section 7(a).

          "DTC" has the meaning specified in Section 2.3.

          "Exercise Period" has the meaning specified in Section 3(a).

          "Exercise Price" has the meaning specified in Section 3(a).

                                       46

<PAGE>

          "Exercise Price Adjustment Event" means any event specified in Section
7 resulting in an adjustment of the Exercise Price.

          "Existing Benefit Plan" means the ITC/\DeltaCom, Inc. Stock Incentive
Plan.

          "Expiration Date" has the meaning specified in Section 3(a).

          "Fundamental Change" means any transaction or event, including,
without limitation, any merger, consolidation, sale, conveyance, lease, exchange
or transfer of assets, tender or exchange offer, reclassification (including any
such reclassification in connection with a consolidation or merger in which the
Company is the surviving corporation), capital reorganization, compulsory share
exchange or liquidation, in each case in which all or substantially all
outstanding shares of the Common Stock, or all or substantially all of the
assets or the property of the Company, are converted into or exchanged for
Capital Stock (of the Company or another issuer) or other securities, cash or
other property.

          "Global Warrants" means, individually and collectively, each of the
Restricted Global Warrants and the Unrestricted Global Warrants, substantially
in the form of Exhibit A hereto, issued in accordance with Sections 2.1(b) and
10.

          "Global Warrant Legend" means the legend set forth in Section
10.1(c)(ii), which is required to be placed on all Global Warrants issued under
this Warrant Agreement.

          "Governance Agreement" means the Governance Agreement, dated as of
October 6, 2003, as amended from time to time, among the Company, WCAS Capital
Partners III, L.P., Welsh, Carson, Anderson & Stowe VIII, L.P., WCAS Information
Partners, L.P. and certain individual investors and trusts listed on the
signature pages thereto.

          "Holder" means a Person who is listed as the record owner of (i)
Warrants, (ii) the Warrant Shares or (iii) any other securities issued or
issuable with respect to the Warrants

                                       47

<PAGE>

or Warrant Shares by way of stock dividend or stock split or in connection with
a combination of shares, recapitalization, merger, consolidation or other
reorganization or otherwise.

          "Independent Appraiser" means an independent investment banking firm
or independent public accounting firm, in each case of nationally recognized
standing in the valuation of businesses similar to the business of the Company.

          "Initial Holder" means (i) any Holder of Warrants on the Issue Date
and (ii) a maximum of one Affiliate of SCANA Communications Holdings, Inc. to
which SCANA Communications Holdings, Inc. transfers Warrants, provided that
SCANA Communications Holdings, Inc. gives written notice to the Company in
connection with such transfer that such Affiliate shall be considered an Initial
Holder.

          "Issue Date" means October 29, 2002.

          "Liens" means liens and charges other than liens and charges arising
under (i) any agreement entered into between the Company and any Holder of a
Warrant from time to time or (ii) any other agreement to which the Company is
not a party.

          "Liquidation Event" means a liquidation, dissolution or winding up of
the Company, whether voluntary or involuntary.

          "Merger Agreement" means the Agreement and Plan of Merger, dated as of
July 2, 2003, as amended from time to time, among the Company, BTI Telecom
Corp., 8DBC1 Corp., WCAS Capital Partners III, L.P., Welsh, Carson, Anderson &
Stowe VIII, L.P., WCAS Information Partners, L.P. and certain individual
investors and trusts listed on the signature pages thereto.

                                       48

<PAGE>

          "Merger Common Stock" means the Common Stock issued by the Company
pursuant to the Merger Agreement, so long as no such amendment after the
Amendment Date shall increase the number of shares of Common Stock issuable
pursuant thereto.

          "New Equity Investors" has the meaning set forth in the Plan.

          "NASDAQ" means The NASDAQ Stock Market, Inc. and shall refer to the
NASDAQ National Market or the NASDAQ SmallCap Market, as the case may be.

          "NMS" has the meaning specified in Section 6.

          "Officer" means, with respect to any Person, the Chairman of the
Board, the Chief Executive Officer, the President, the Chief Operating Officer,
the Chief Financial Officer, the Treasurer, any Assistant Treasurer, the
Controller, the Secretary or any Vice-President of such Person.

          "Options" has the meaning specified in Section 7(b)(i).

          "Person" means any individual, corporation, partnership, limited
liability company, joint venture, association, joint-stock company, trust,
unincorporated organization or government or any agency or political subdivision
thereof, including any subdivision or ongoing business of any such entity or
substantially all of the assets of any such entity, subdivision or business.

          "Plan" means the Company's plan of reorganization confirmed by order
of the United States Bankruptcy Court for the District of Delaware entered on
October 17, 2002 in In re ITC/\DeltaCom, Inc. (Case No. 02-11848 (MFW)).

          "Private Placement Legend" means the legend set forth in Section
10.1(c)(i) to be placed on all Warrants issued under this Warrant Agreement,
except where otherwise permitted by the provisions of this Warrant Agreement.

                                       49

<PAGE>

          "Proposed Series B Amendment" has the meaning set forth in Section
12(b).

          "Related Entity" means, with respect to any Person, (i) if such Person
is an "ultimate parent entity," as defined in the Hart-Scott-Rodino Antitrust
Improvements Act of 1976, as amended, and the regulations promulgated
thereunder, each direct or indirect subsidiary of such Person and (ii) if such
Person is not an "ultimate parent entity," as defined in such Act, and
regulations, each ultimate parent entity (as so defined) of such Person and each
other Person which is a direct or indirect subsidiary of any such ultimate
parent entity.

          "Reorganization Common Stock" means the Common Stock issued by the
Company under or in connection with the Plan, including, without limitation, the
Common Stock issued by the Company to the New Equity Investors on the effective
date of the Plan.

          "Required Initial Holders" means, as of any date of determination,
Initial Holders and their Affiliates that are the beneficial and record owners,
as of such date of determination, of a majority of the Warrants outstanding on
such date of determination.

          "Restricted Definitive Warrant" means a Definitive Warrant bearing the
Private Placement Legend.

          "Restricted Global Warrant" means a Global Warrant bearing the Private
Placement Legend.

          "Restricted Warrant" means a Restricted Global Warrant or a Restricted
Definitive Warrant, as the case may be.

          "Restricted Warrant Shares" means Warrant Shares issued or issuable
upon exercise of a Restricted Warrant.

          "Securities Act" has the meaning specified in Section 3(a).

                                       50

<PAGE>

          "Series A Certificate of Designation" means the Certificate of
Designation of the Powers, Preferences and Relative, Participating, Optional and
Other Special Rights of 8% Series A Convertible Redeemable Preferred Stock and
Qualifications, Limitations and Restrictions Thereof.

          "Series A Directors" means the directors of the Company who are
initially designated by the New Equity Investors for the Board of Directors
under the Plan or thereafter (i) elected to the Board of Directors pursuant to
the Series A Certificate of Designation by the holders of the Series A Preferred
Stock voting as a separate class or (ii) appointed to the Board of Directors
pursuant to the Series A Certificate of Designation.

          "Series A Preferred Stock" has the meaning specified in the preamble
hereto.

          "Series B Certificate of Designation" means the Certificate of
Designation of the Powers, Preferences and Relative, Participating, Optional and
Other Special Rights of 8% Series B Convertible Redeemable Preferred Stock and
Qualifications, Limitations and Restrictions Thereof.

          "Series B Preferred Stock" means the 8% Series B Convertible
Redeemable Preferred Stock of the Company authorized in the Series B Certificate
of Designation.

          "Series B Warrant Agreement" means the Warrant Agreement, dated as of
October 6, 2003, between the Company and Mellon Investor Services LLC, as
Warrant Agent, as amended from time to time, so long as no amendment to such
Warrant Agreement after the Amendment Date shall increase the number of warrants
issuable pursuant thereto.

          "Series B Warrants" means the warrants to purchase Common Stock issued
by the Company pursuant to the Series B Warrant Agreement; provided that such
warrants have the same exercise expiration date and (subject to adjustments
pursuant to antidilution provisions of

                                       51

<PAGE>

the Series B Warrant Agreement) the same exercise price as the warrants issued
pursuant to the Series B Warrant Agreement which are outstanding on the
Amendment Date.

          "Transfer" has the meaning specified in Section 10.1(b).

          "Transferee" means any Person that acquires assets of the Company in
connection with any sale, conveyance, lease, exchange or transfer of such assets
by the Company to or with such Person.

          "Unrestricted Global Warrant" means a Global Warrant, substantially in
the form of Exhibit A attached hereto, that bears the Global Warrant Legend and
that has the "Schedule of Exchanges of Interests in Global Warrant" attached
thereto, and that is deposited with or on behalf of and registered in the name
of the Depositary, representing a series of Warrants that do not bear the
Private Placement Legend.

          "Warrant" has the meaning specified in the preamble hereto.

          "Warrant Agent" (i) has the meaning specified in the first paragraph
hereof and (ii) means any successor or replacement to Mellon Investor Services
LLC as provided in Section 9.

          "Warrant Certificate" has the meaning specified in Section 2.1(a).

          "Warrant Countersignature Order" has the meaning specified in Section
2.2.

          "Warrant Registrar" has the meaning specified in Section 2.3.

          "Warrants" has the meaning specified in the preamble hereto.

          "Warrant Shares" has the meaning specified in the preamble hereto.

SECTION 16. WARRANT HOLDER NOT DEEMED A STOCKHOLDER.

          Prior to the exercise of the Warrants, no Holder of a Warrant
Certificate, as such, shall be entitled to any rights of a stockholder of the
Company, including, without limitation, the right to vote or to consent to any
action of the stockholders, to receive dividends or other

                                       52

<PAGE>

distributions, to exercise any preemptive right or to receive any notice of
meetings of stockholders.

SECTION 17. GOVERNING LAW.

          This Agreement and each Warrant Certificate issued hereunder shall be
deemed to be a contract made under the laws of the State of New York and for all
purposes shall be construed in accordance with the internal laws of the State of
New York, without giving effect to principles of conflict of laws to the extent
the application of the laws of another jurisdiction would be required thereby.

SECTION 18. BENEFITS OF THIS AGREEMENT.

          Nothing in this Agreement is intended or shall be construed to give to
any Person other than the Company and the Warrant Agent and their respective
successors and assigns and the registered holders of Warrants any legal or
equitable right, remedy or claim under this Agreement. This Agreement shall be
for the sole and exclusive benefit of the Company and the Warrant Agent and
their respective successors and assigns and the registered holders of Warrants.

SECTION 19. COUNTERPARTS.

          This Agreement may be executed in any number of counterparts and each
of such counterparts shall for all purposes be deemed to be an original, and all
such counterparts shall together constitute but one and the same instrument.

                                       53

<PAGE>

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

                                   ITC/\DELTACOM, INC.

                                   By: /s/ J. Thomas Mullis
                                       -----------------------------------------
                                       Name: J. Thomas Mullis
                                       Title: Senior Vice President-Legal
                                              and Regulatory

                                   MELLON INVESTOR SERVICES LLC
                                   as Warrant Agent

                                   By: /s/ Judy Hsu
                                       -----------------------------------------
                                       Name: Judy Hsu
                                       Title: Vice President

                                       54

<PAGE>

                                    EXHIBIT A

                          [Form of Warrant Certificate]

                                     [Face]

          [THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR UNDER
ANY APPLICABLE STATE SECURITIES LAWS, AND ARE SUBJECT TO RESTRICTIONS ON
TRANSFER UNDER THE SECURITIES ACT AND SUCH LAWS. THE SECURITIES MAY NOT BE SOLD,
PLEDGED, TRANSFERRED, ASSIGNED OR OTHERWISE DISPOSED OF EXCEPT IN A TRANSACTION
WHICH IS EXEMPT UNDER THE PROVISIONS OF THE SECURITIES ACT AND ANY APPLICABLE
STATE SECURITIES LAWS, OR PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT OR IN
A TRANSACTION OTHERWISE IN COMPLIANCE WITH APPLICABLE FEDERAL AND STATE
SECURITIES LAWS. THE COMPANY RESERVES THE RIGHT PRIOR TO ANY SUCH TRANSACTION TO
REQUIRE AN OPINION OF COUNSEL TO THE HOLDER OF THE SECURITIES SATISFACTORY TO IT
WITH RESPECT TO COMPLIANCE WITH THE FOREGOING RESTRICTIONS]/1/

          [THIS GLOBAL WARRANT IS HELD BY THE DEPOSITARY (AS DEFINED IN THE
WARRANT AGREEMENT GOVERNING THIS WARRANT) OR ITS NOMINEE IN CUSTODY FOR THE
BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY PERSON
UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE WARRANT AGENT MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED BY THE DEPOSITARY IN ORDER FOR IT TO ACCEPT
THE WARRANTS

----------
/1/  This paragraph is to be included in Restricted Global Warrants and
     Restricted Definitive Warrants.

                                      A-1

<PAGE>

FOR ITS BOOK-ENTRY SETTLEMENT SYSTEM, (II) THIS GLOBAL WARRANT MAY
BE DELIVERED TO THE WARRANT AGENT FOR CANCELLATION PURSUANT TO SECTION 10.4 OF
THE WARRANT AGREEMENT AND (III) THIS GLOBAL WARRANT MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY ONLY WITH THE PRIOR WRITTEN CONSENT OF ITC/\DELTACOM,
INC.]/2/

          [THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
LIMITATIONS ON TRANSFER SET FORTH IN AN AGREEMENT DATED AS OF OCTOBER 6, 2003
BETWEEN ITC/\DELTACOM, INC. AND THE OTHER PARTIES THERETO. A COPY OF SUCH
AGREEMENT IS ON FILE WITH THE SECRETARY OF ITC/\DELTACOM, INC. EXCEPT FOR A
DISPOSITION OF SECURITIES PERMITTED BY THE PROVISIONS OF ARTICLE II OF SUCH
AGREEMENT IF THE PROVISIONS OF SUCH ARTICLE ARE THEN IN EFFECT, SUCH TRANSFER
LIMITATIONS SHALL BE APPLICABLE TO ANY DISPOSITION OF THESE SECURITIES AND THIS
LEGEND SHALL BE STAMPED OR OTHERWISE IMPRINTED ON ANY CERTIFICATE EVIDENCING
THESE SECURITIES.]/3/

No.                  Warrants
    ----------   ---

                               Warrant Certificate

                               ITC/\DELTACOM, INC.

          This Warrant Certificate certifies that             , or its
                                                  ------------
registered assigns, is the registered holder of Warrants expiring October 29,
2007 (the "Warrants") to purchase Common Stock, par value $.01 per share (the
"Common Stock"), of ITC/\DeltaCom, Inc., a

----------
/2/  This paragraph is to be included only if the Warrant is in global form.

/3/  This paragraph is to be included only if the agreement referred to therein
     shall be in effect.

                                      A-2

<PAGE>

corporation organized under the laws of the State of Delaware (the "Company").
Each Warrant entitles the registered holder upon exercise at any time from the
date of issuance of such Warrant (the "Exercise Date") until immediately prior
to 5:00 p.m., New York City time, on October 29, 2007, to receive from the
Company one fully paid and non-assessable share of Common Stock (collectively,
the "Warrant Shares") at the initial exercise price (the "Exercise Price") of
$5.114 per share of Common Stock payable upon surrender of this Warrant
Certificate and payment, subject to the third paragraph on the reverse side of
this Warrant Certificate, of the Exercise Price at the office or agency of the
Warrant Agent, but only subject to the conditions set forth herein and in the
Warrant Agreement referred to on the reverse hereof. The Exercise Price and
number of Warrant Shares issuable upon exercise of the Warrants are subject to
adjustment upon the occurrence of certain events set forth in the Warrant
Agreement.

          No Warrant may be exercised on or after 5:00 p.m., New York City time,
on October 29, 2007, and to the extent not exercised by such time such Warrant
shall become void.

          Reference is hereby made to the further provisions of this Warrant
Certificate set forth on the reverse hereof, and such further provisions shall
for all purposes have the same effect as though fully set forth at this place.

          This Warrant Certificate shall not be valid unless countersigned by
the Warrant Agent, as such term is used in the Warrant Agreement.

          This Warrant Certificate shall be governed by and construed in
accordance with the internal laws of the State of New York.

                                      A-3

<PAGE>

          IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be signed below.

Dated:            , 20
       -----------    --
                                   ITC/\DELTACOM, INC.

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

Countersigned:

MELLON INVESTOR SERVICES LLC
as Warrant Agent

By:
    ------------------------------
        Authorized Signature

                                      A-4

<PAGE>

                        [Reverse of Warrant Certificate]

          The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants expiring at 5:00 p.m., New York City time, on
October 29, 2007 entitling the holder upon exercise to receive shares of Common
Stock, and are issued or to be issued pursuant to a Warrant Agreement dated as
of October 29, 2002 (as amended from time to time, the "Warrant Agreement"),
duly executed and delivered by the Company to Mellon Investor Services LLC, as
warrant agent (the "Warrant Agent"), which Warrant Agreement is hereby
incorporated by reference in and made a part of this instrument and is hereby
referred to for a description of the rights, limitation of rights, obligations,
duties and immunities thereunder of the Warrant Agent, the Company and the
holders (the words "holders" or "holder" meaning the registered holders or
registered holder) of the Warrants. A copy of the Warrant Agreement may be
obtained by the holder hereof upon written request to the Company. Capitalized
terms herein are used as defined in the Warrant Agreement unless otherwise
indicated. To the extent any provision of this Warrant Certificate conflicts
with the express provisions of the Warrant Agreement, the provisions of the
Warrant Agreement shall govern and be controlling.

          Warrants may be exercised at any time and from time to time during the
period commencing on the date of issuance of the Warrants and ending immediately
prior to 5:00 p.m., New York City time, on October 29, 2007; provided that
either (i) a registration statement relating to the exercise of the Warrants and
issuance of the Warrant Shares upon such exercise is then effective under the
Securities Act of 1933, as amended (the "Securities Act"), or (ii) the exercise
of such Warrants and the issuance of the Warrant Shares upon such exercise is
exempt from the registration requirements of the Securities Act and such Warrant
Shares are qualified for sale or exempt from registration or qualification under
the applicable securities laws of the

                                      A-5

<PAGE>

states in which the various holders of the Warrants or other Persons to whom it
is proposed that such Warrant Shares be issued upon exercise of the Warrants
reside. In order to exercise all or any of the Warrants represented by this
Warrant Certificate, the holder must deliver to the Warrant Agent at its office
set forth in Section 11 of the Warrant Agreement (i) this Warrant Certificate,
(ii) the form of election to purchase on the reverse hereof duly and properly
filled in and signed, which signature shall be guaranteed by a bank or trust
company having an office or correspondent in the United States or a broker or
dealer which is a member of a registered securities exchange or the National
Association of Securities Dealers, Inc, and (iii) subject to the following
paragraph, payment to the Warrant Agent for the account of the Company of the
Exercise Price for the number of Warrant Shares in respect of which such
Warrants are then exercised, as provided in the Warrant Agreement. No
adjustments as to dividends shall be made upon exercise of this Warrant.

          Subject to the last sentence of this paragraph, in lieu of making the
payment of the Exercise Price in connection with the exercise of each Warrant
(but in all other respects in accordance with the exercise procedure set forth
above, as such exercise procedure may be adjusted to reflect the conversion
referred to herein), the holder of each Restricted Warrant may elect to convert
such Restricted Warrant into shares of Common Stock by providing the Company and
the Warrant Agent with joint written notification of such election, in which
event the Company shall issue to such holder the number of shares of Common
Stock calculated in accordance with formula:

          X = (A - B) x C
              -----------
                   A

          where

                                      A-6

<PAGE>

               X = the number of shares of Common Stock issuable upon
                   exercise pursuant to Section 3(f) of the Warrant Agreement

               A = the Closing Price on the Business Day immediately
                   preceding the date on which the holder delivers the Warrant
                   Certificate and form of election to purchase to the Company
                   pursuant to Section 3(b) of the Warrant Agreement

               B = the Exercise Price

               C = the number of shares of Common Stock as to which such
                   Restricted Warrant is being exercised pursuant to Section
                   3(a) of the Warrant Agreement

If the foregoing calculation results in a negative number, no shares of Common
Stock shall be issued upon conversion pursuant hereto. Notwithstanding any
provision of this Warrant or the Warrant Agreement to the contrary, the holder
of any Restricted Warrant may elect to convert such Restricted Warrant into
shares of Common Stock as provided herein only if the Board of Directors shall
determine that upon such conversion the Company shall receive consideration in
an amount not less than the par value of the shares of Common Stock issuable
upon such conversion.

          The Warrant Agreement provides that upon the occurrence of certain
events the Exercise Price set forth on the face hereof may, subject to certain
conditions, be adjusted. If the Exercise Price is adjusted, the Warrant
Agreement provides that the number of shares of Common Stock issuable upon the
exercise of each Warrant shall be adjusted. No fractions of a share of Common
Stock shall be issued upon the exercise of any Warrant, but the Company may,

                                      A-7

<PAGE>

in its sole discretion, (i) round such fractional share up to the nearest whole
share or (ii) pay the cash value thereof determined as provided in the Warrant
Agreement.

          The Warrants shall be exercisable, at the election of the holder,
either in full or from time to time in part, provided that Warrants may not be
exercised by the holder for an amount less than 100 Warrant Shares unless such
holder only owns, in the aggregate, such lesser amount. If fewer than all the
Warrants represented by this Warrant Certificate are exercised, this Warrant
Certificate shall be surrendered and a new Warrant Certificate of the same tenor
and for the number of Warrants which were not exercised shall be delivered to
the person or persons entitled to receive such new Warrant Certificate.

          Upon due presentation for registration of transfer of this Warrant
Certificate at the office of the Warrant Agent a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of Warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided in the Warrant Agreement,
without charge except for any tax or other governmental charge imposed in
connection therewith.

          The Company and the Warrant Agent may deem and treat the registered
holder(s) thereof as the absolute owner(s) of this Warrant Certificate
(notwithstanding any notation of ownership or other writing hereon made by
anyone), for the purpose of any exercise hereof, or any distribution to the
holder(s) hereof, and for all other purposes, and neither the Company nor the
Warrant Agent shall be affected by any notice to the contrary. Neither the
Warrants represented by this Warrant Certificate nor this Warrant Certificate
shall entitle any holder hereof to any rights of a stockholder of the Company.

                                      A-8

<PAGE>

                         [Form of Election to Purchase]

                    (To Be Executed Upon Exercise of Warrant)

          The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant Certificate, to receive               shares of
                                                    -------------
Common Stock and herewith tenders payment for such shares to the order of
ITC/\DELTACOM, INC., in the amount of $           in accordance with the terms
                                      ----------
hereof. If the undersigned hereby elects to convert the Warrants represented by
this Warrant Certificate into shares of Common Stock as provided in this Warrant
Certificate, tender of this Warrant Certificate in lieu of payment as aforesaid
shall be deemed payment for such shares of Common Stock. The undersigned
requests that a certificate for such shares be registered in the name of
               , whose address is                    and that such shares be
---------------                   ------------------
delivered to            , whose address is                             . If such
             -----------                   ----------------------------
number of shares is less than all of the shares of Common Stock purchasable
hereunder, the undersigned requests that a new Warrant Certificate representing
the remaining balance of such shares be registered in the name of
                      , whose address is                     , and that such
----------------------                   --------------------
Warrant Certificate be delivered to                 whose address is
                                    ---------------
                    .
--------------------

                                                     ---------------------------
                                                     Signature

Date:
      --------------

                                                     ---------------------------
                                                     Signature Guaranteed

                                      A-9

<PAGE>

              SCHEDULE OF EXCHANGES OF INTERESTS IN GLOBAL WARRANT

The following exchanges of a part of this Global Warrant have been made:

                                                   Number of
             Amount of          Amount of       Warrants in this
            decrease in        increase in       Global Warrant    Signature of
             Number of          Number of        following such     authorized
Date of   warrants in this   Warrants in this     decrease or       officer of
Exchange   Global Warrant     Global Warrant        increase       Warrant Agent
--------------------------------------------------------------------------------

                                      A-10

<PAGE>

                                    EXHIBIT B

                    [Form of Investment Letter for Exercise]

ITC/\DeltaCom, Inc.
1791 O.G. Skinner Drive
West Point, GA 31833

Ladies and Gentlemen:

     The undersigned (the "Purchaser") refers hereby to the Warrant Agreement,
dated as of October 29, 2002, between ITC/\DeltaCom, Inc. (the "Company") and
Mellon Investor Services LLC, as Warrant Agent (as amended from time to time,
the "Agreement"). Capitalized terms used in this letter and not defined herein
have the meanings given to such terms in the Agreement.

     This letter is being furnished to the Company pursuant to Section 3(c) of
the Agreement.

     The Warrant Agent has received from a Holder of Warrants an executed
election form for the purchase of             shares of Common Stock (the
                                  -----------
"Warrant Shares") issuable upon the exercise of such Warrants. In connection
with its purchase of the Warrant Shares, the Purchaser confirms that:

     1. The Purchaser has received such information as it deems necessary in
order to make its investment decision in connection with its purchase of the
Warrant Shares.

     2. The Purchaser understands that the offer and sale of the Warrant Shares
have not been registered under the Securities Act of 1933, as amended (the
"Securities Act"), or applicable state securities laws. The Purchaser
understands that any Transfer of the Warrant Shares is subject to certain
restrictions and conditions set forth in the Warrant Agreement and agrees to be
bound by, and not to Transfer the Warrant Shares except in compliance with, such
restrictions and conditions and the Securities Act.

     3. The Purchaser understands that, upon any proposed Transfer of any
Warrant Shares, it will be required to furnish to the Warrant Agent and the
Company such certifications, legal opinions and other information as are
specified in the Warrant Agreement or as the Warrant Agent and the Company may
reasonably require to confirm that the proposed Transfer complies with the
foregoing restrictions and conditions. The Purchaser further understands that
the Warrant Shares purchased by it will bear a legend to the foregoing effect
and that the Company may place a "stop transfer order" with any transfer agent
or registrar with respect to the Warrant Shares.

     4. The Purchaser is an "accredited investor" (as defined in Rule 501(a) of
Regulation D under the Securities Act) and has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of its investment in the Warrant

                                      B-1

<PAGE>

Shares, and it and any account for which it is acting is each able to bear the
economic risk of such an investment.

     5. The Purchaser is acquiring the Warrant Shares purchased by it for its
own account or for one or more accounts (each of which is an "accredited
investor") as to each of which the Purchaser exercises sole investment
discretion.

     The Company and the Warrant Agent are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

                                        Very truly yours,

cc: Mellon Investor Services LLC, as Warrant Agent

                                      B-2

<PAGE>

                                    EXHIBIT C

                    [Form of Investment Letter for Transfer]

ITC/\DeltaCom, Inc.
1791 O.G. Skinner Drive
West Point, GA 31833

Ladies and Gentlemen:

     The undersigned (the "Transferee") refers hereby to the Warrant Agreement,
dated as of October 29, 2002, between ITC/\DeltaCom, Inc. (the "Company") and
Mellon Investor Services LLC, as Warrant Agent (as amended from time to time,
the "Agreement"). Capitalized terms used in this letter and not defined herein
have the meanings given to such terms in the Agreement.

     This letter is being furnished to the Company pursuant to Section 10.1(b)
of the Agreement.

     A Holder of Warrants proposes to Transfer to the Transferee a beneficial
interest in a Restricted Global Warrant or Restricted Definitive Warrant
(collectively, the "Warrants"). In connection with its acquisition of the
Warrants, the Transferee confirms that:

     1. The Transferee understands that the Warrants and the shares of Common
Stock or other securities issuable upon exercise thereof (collectively, the
"Warrant Shares") have not been registered under the Securities Act of 1933, as
amended (the "Securities Act"), or applicable state securities laws. The
Transferee understands that any subsequent Transfer of the Warrants or the
Warrant Shares is subject to certain restrictions and conditions set forth in
the Warrant Agreement and agrees to be bound by, and not to Transfer, the
Warrants or the Warrant Shares except in compliance with, such restrictions and
conditions and the Securities Act.

     2. The Transferee understands that, upon any proposed Transfer of the
Warrants or the Warrant Shares, it will be required to furnish to the Warrant
Agent and the Company such certifications, legal opinions and other information
as are specified in the Warrant Agreement or as the Warrant Agent and the
Company may reasonably require to confirm that the proposed Transfer complies
with the foregoing restrictions and conditions. The Transferee further
understands that the Warrants and the Warrant Shares will bear a legend to the
foregoing effect and that the Company may place a "stop transfer order" with any
transfer agent or registrar with respect to the Warrants and the Warrant Shares.

     3. The Transferee is an "accredited investor" (as defined in Rule 501(a) of
Regulation D under the Securities Act) and has such knowledge and experience in
financial and business matters as to be capable of evaluating the merits and
risks of its investment in the

                                      C-1

<PAGE>

Warrants, and it and any account for which it is acting is each able to bear the
economic risk of such an investment.

     4. The Transferee is acquiring the Warrants purchased by it for its own
account or for one or more accounts (each of which is an "accredited investor")
as to each of which the Transferee exercises sole investment discretion.

     The Company and the Warrant Agent are entitled to rely upon this letter and
are irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

                                        Very truly yours,

cc: Mellon Investor Services LLC, as Warrant Agent

                                     -C-2-<PAGE>

                                                                    Exhibit 10.1

                                                                  Execution Copy

================================================================================

                              GOVERNANCE AGREEMENT

                                      Among

                              ITC/\DeltaCom, Inc.,

                            The WCAS Securityholders

                                       and

                                The Other Holders

                           Dated as of October 6, 2003

================================================================================

<PAGE>

                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                                               Page
                                                                                               ----
<S>                                                                                             <C>
ARTICLE I DEFINITIONS............................................................................1

   SECTION 1.1.    Definitions...................................................................1

ARTICLE II RESTRICTIONS ON PURCHASES OF VOTING SECURITIES........................................9

   SECTION 2.1.    Restrictions on Transfers.....................................................9
   SECTION 2.2.    Restrictions on Transfer to Competitors......................................10
   SECTION 2.3.    Other Transfer Restrictions..................................................10
   SECTION 2.4.    Other Stockholder Tag-Along..................................................11
   SECTION 2.5.    Effect of Transfers..........................................................12
   SECTION 2.6.    Transfers in Violation of Agreement Void.....................................12

ARTICLE III ACQUISITIONS OF VOTING SECURITIES AND BUSINESS COMBINATIONS.........................13

   SECTION 3.1.    Purchases of Voting Securities...............................................13
   SECTION 3.2.    Squeeze-Outs and Business Combinations.......................................13
   SECTION 3.3.    Interested Transactions......................................................14

ARTICLE IV CORPORATE GOVERNANCE.................................................................14

   SECTION 4.1.    Composition of the Board of Directors........................................14
   SECTION 4.2.    Voting.......................................................................15
   SECTION 4.3.    Vacancies....................................................................16
   SECTION 4.4.    Board Committees.............................................................17
   SECTION 4.5.    Subsidiary Boards of Directors and Committees................................18
   SECTION 4.6.    Director Expenses; Indemnity and Exculpation.................................19
   SECTION 4.7.    No Amendment of Certificate of Incorporation or Bylaws; Board Observers......19

ARTICLE V LISTING MATTERS.......................................................................20

   SECTION 5.1.    Listing......................................................................20

ARTICLE VI LEGEND...............................................................................21

ARTICLE VII MISCELLANEOUS.......................................................................21

   SECTION 7.1.    Notices......................................................................21
   SECTION 7.2.    No Waivers; Amendments.......................................................23
   SECTION 7.3.    Further Assurances...........................................................23
   SECTION 7.4.    Enforcement of this Agreement................................................23
   SECTION 7.5.    Severability.................................................................23
</TABLE>

                                        i

<PAGE>

<TABLE>
<CAPTION>
                                                                                               Page
                                                                                               ----
<S>                                                                                             <C>
   SECTION 7.6.    Entire Agreement; Assignment.................................................24
   SECTION 7.7.    Parties in Interest..........................................................24
   SECTION 7.8.    Remedies.....................................................................24
   SECTION 7.9.    Governing Law; Consent to Jurisdiction.......................................24
   SECTION 7.10.   Recapitalization, etc........................................................25
   SECTION 7.11.   Public Statements............................................................25
   SECTION 7.12.   Portfolio Company Actions....................................................25
   SECTION 7.13.   HSR Filing Fees and Expenses.................................................25
   SECTION 7.14.   Non-Solicitation.............................................................25
   SECTION 7.15.   Headings.....................................................................26
   SECTION 7.16.   Counterparts.................................................................26
   SECTION 7.17.   Effectiveness; Termination...................................................26
   SECTION 7.18.   Obligations Imposed By Law...................................................26
   SECTION 7.19.   Definition of Stockholder....................................................26
</TABLE>

                                       ii

<PAGE>

          GOVERNANCE AGREEMENT, dated as of October 6, 2003 (this "Agreement"),
between ITC/\DeltaCom, Inc., a Delaware corporation ("Parent"), and each Person
listed on the signature pages hereof under the heading "WCAS Securityholders"
(each a "WCAS Securityholder" and collectively, "W") and each Other Holder (as
defined in Section 1.1).

          WHEREAS, Parent, 8DBC1 Corp., a North Carolina corporation and direct
wholly-owned subsidiary of Parent ("Merger Co."), W and BTI Telecom Corp., a
North Carolina corporation ("BTI"), have entered into an Agreement and Plan of
Merger dated as of July 2, 2003 (as amended from time to time, the "Merger
Agreement") pursuant to which (i) Parent will acquire BTI through the merger
(the "Merger") of Merger Co. with and into BTI and pursuant to which certain
WCAS Securityholders will acquire 6,950,000 shares of Common Stock of Parent,
additional shares of Common Stock of Parent as Merger Consideration (as defined
in the Merger Agreement) and 3,000,000 Common Stock Purchase Warrants of Parent
and (ii) certain WCAS Securityholders will acquire 350,000 shares of Series B
Preferred Stock of Parent;

          WHEREAS, immediately after the Effective Time (as defined in the
Merger Agreement), W will beneficially own the shares of Common Stock, shares of
Series B Preferred Stock and Common Stock Purchase Warrants of Parent set forth
on Annex A attached hereto;

          WHEREAS, the Other Holders are the owners of shares of Common Stock,
shares of Series A Preferred Stock and Common Stock Purchase Warrants of Parent;
and

          WHEREAS, W and Parent desire to establish in this Agreement certain
terms and conditions concerning the corporate governance of Parent after the
Effective Time of the Merger and certain terms and conditions concerning the
acquisition and disposition of securities of Parent by W and the Other Holders.

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

                                    ARTICLE I

                                   DEFINITIONS

          SECTION 1.1. Definitions. As used in this Agreement, the following
terms have the following meanings:

          "Affiliate" has the same meaning as in Rule 12b-2 promulgated under
the Exchange Act as in effect on the date hereof; provided that, for purposes of
this Agreement (i) Parent and any Subsidiary of Parent shall not be treated as
an Affiliate of any other party hereto and (ii) Affiliate shall not include any
portfolio company of W or its Affiliates.

          "Agreement" is defined in the preamble.

          "Article IV Breach" means any material breach by Parent of any
material provision of Article IV if (i) W has provided Parent with written
notice of such breach, (ii)

<PAGE>

                                                                               2

Parent has not cured such breach within 30 days after receipt of such notice by
W, and (iii) in the event of any unresolved dispute between Parent and W
regarding the existence of any such material breach (or whether Parent has cured
such breach), Parent and W have submitted such dispute to binding arbitration
pursuant to the procedures described in Annex B hereto, and the arbitration
panel has rendered a decision that Parent has committed such breach and has not
cured such breach within the period provided in clause (ii).

          "Associate" has the same meaning as in Rule 12b-2 promulgated under
the Exchange Act as in effect on the date hereof.

          "Beneficial owner" and to "beneficially own" has the same meaning as
in Rule 13d-3 promulgated under the Exchange Act as in effect on the date
hereof; provided that in determining beneficial ownership for purposes of this
Agreement, a Person shall be deemed to be the beneficial owner of any Voting
Securities which may be acquired by such Person upon the conversion, exchange or
exercise of any Voting Security Equivalents irrespective of whether such Voting
Security Equivalents are exercisable within 60 days.

          "Board of Directors" means the Board of Directors of Parent.

          "Change of Control" means (i) the consummation of a Qualifying Asset
Sale; (ii) the consummation of any transaction or series of related transactions
(including any merger or consolidation) as a result of which any Person or Group
of Persons, other than W and its Affiliates, becomes the beneficial owner,
directly or indirectly, of more than 50% of the Voting Power (other than any
such transaction or series of related transactions subject to Section 2.3 or any
such transaction or series of related transactions that would violate any
provision of this Agreement); and (iii) at any time that W and its Affiliates do
not beneficially own more than 50% of the Voting Power, the first day on which a
majority of the Directors are not Continuing Directors, provided that none of W
or its Affiliates shall have engaged in any Contest that caused a majority of
the Directors not to be Continuing Directors.

          "Committee of Independent Directors" means a standing committee of the
Board of Directors comprised of all of the Independent Directors; provided that
each Series A Designee which has a Disqualifying Relationship (whether or not
such Series A Designee is an "independent director" within the meaning of the
rules and regulations of any national securities exchange or Interdealer
Quotation System on which Parent's securities may be listed or traded) shall
serve (unless such Series A Designee declines to serve) on the Committee of
Independent Directors unless the Committee of Independent Directors (other than
any Series A Designee who has a Disqualifying Relationship) determines in its
good faith judgment, after considering advice of outside legal counsel, that
such Series A Designee's ability to exercise independent judgment in carrying
out his or her responsibilities as a Director has been compromised in a material
respect as a result of a change in circumstances subsequent to the date hereof
relating to such Director's Disqualifying Relationship.

          "Common Stock" means the common stock, par value $0.01 per share, of
Parent.

          "Competitor" means any Person who is or, based on the publicly
announced intention or plan of such Person, is reasonably likely to become a
competitor of Parent or any

<PAGE>

                                                                               3

subsidiary of Parent in the business of providing retail or wholesale
telecommunications services.

          "Contest" means any action by a Person, whether such Person acts alone
or in concert with any other Person, (i) seeking to elect an individual to, or
place a representative on, the Board of Directors who is not a Continuing
Director, (ii) seeking to remove (other than for cause) from the Board of
Directors any individual who is a Continuing Director, or (iii) opposing the
recommendation of a majority of the Continuing Directors with respect to the
nomination, appointment or election of any individual as a Director; provided
that any action by W or its Affiliates with respect to the nomination,
designation, election or removal of any WCAS Designee, any other Director
employed by W or any of its Affiliates or any Director elected by the holders of
the Series B Preferred Stock pursuant to the certificate of designations of the
Series B Preferred Stock (including the nomination, designation or election of
any successor to any WCAS Designee or any such Director) shall, in each case,
not be deemed a "Contest."

          "Continuing Directors" means the Directors immediately following the
Effective Time; provided that any individual becoming a Director during any year
shall be considered to be a Continuing Director if such individual's election,
appointment or nomination was recommended or approved by at least two-thirds of
the other Continuing Directors continuing in office following such election,
appointment or nomination present, in person or by telephone, at any meeting of
the Board of Directors, after the giving of a sufficient notice to each
Continuing Director so as to provide a reasonable opportunity for each such
Continuing Director to be present at such meeting. For purposes of this
definition, any Director elected by the holders of the Series A Preferred Stock
pursuant to the certificate of designations of the Series A Preferred Stock and
any Director elected by the holders of the Series B Preferred Stock pursuant to
the certificate of designations of the Series B Preferred Stock shall be deemed
to be a Continuing Director.

          "Control," as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise.

          "Determination of the Committee of Independent Directors" means, with
respect to any matter, a determination made in good faith, on the basis of such
relevant factors as the Committee of Independent Directors consider, in their
judgment, appropriate, by a vote of the majority of the members of the Committee
of Independent Directors present at a meeting of the Committee of Independent
Directors called for such purpose, a quorum being present, or without a meeting
if all members of the Committee of Independent Directors consent to such
determination in writing. For these purposes, a majority of all members of the
Committee of Independent Directors, acting at a meeting duly assembled, shall
constitute a quorum for the making of any such determination at such meeting. In
connection with any specific determination to be made by the Committee of
Independent Directors, a Director serving on the Committee of Independent
Directors shall not be deemed to be an Independent Director for purposes of
participating in such determination of the Committee of Independent Directors,
and shall not be entitled to participate in such determination, if, in the
judgment of the Committee of Independent Directors (other than such Director),
such Director has an interest in the matter

<PAGE>

                                                                               4

subject to determination that would interfere with such Director's exercise of
independent judgment in carrying out his or her responsibilities as a Director.

          "Director" means a member of the Board of Directors.

          "Disinterested Stockholders" mean the holders of Voting Securities
and/or Voting Security Equivalents that (i) are not (A) W or Affiliates or
Associates of W or (B) portfolio companies of W or its Affiliates, and (ii) are
not officers or employees of Parent or its Subsidiaries.

          "Disqualifying Relationship" between a Director and Parent means any
of the following relationships: (i) such Director is, or during any of the past
three fiscal years of Parent was, employed by Parent or by any parent or
subsidiary of Parent; (ii) such Director has accepted or has a Family Member who
has accepted any payments from Parent or any parent or subsidiary of Parent in
excess of $60,000 during the current fiscal year or any of the past three fiscal
years of Parent, other than compensation for board service, payments arising
solely from investments in Parent's securities, compensation paid to a Family
Member who is an employee of Parent or a parent or subsidiary of Parent (but not
if such person is an executive officer of Parent or any parent or subsidiary of
Parent), benefits under a tax-qualified retirement plan, or non-discretionary
compensation; (iii) such Director is a Family Member of an individual who is, or
during any of the past three fiscal years of Parent was, employed by Parent or
by any parent or subsidiary of Parent as an executive officer; (iv) such
Director is a partner in, or a controlling shareholder or an executive officer
of, any organization to which Parent made, or from which Parent received,
payments (other than those arising solely from investments in Parent's
securities) that exceed 5% of the recipient's consolidated gross revenues for
that year, or $200,000, whichever is more, in the current fiscal year or any of
the past three fiscal years of Parent; (v) such Director is employed as an
executive officer of another entity where any of the executive officers of
Parent serve on the compensation committee of such other entity, or if such
relationship existed during any of the past three fiscal years of Parent; or
(vi) such Director is or was a partner or employee of Parent's outside auditor,
and worked on Parent's audit, during any of the past three fiscal years of
Parent. For purposes of this definition, each three year "look back" period
referenced above shall instead be the period since the Effective Time, and
"subsidiary" shall include BTI and any subsidiary of BTI. For the avoidance of
doubt, ownership of any class of capital stock of Parent alone shall not
constitute a Disqualifying Relationship.

          "Effective Time" has the same meaning as in the Merger Agreement.

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder.

          "Family Member" of any person means any other person who is a relative
of such first person by blood, marriage or adoption or who has the same
residence as such first person.

          "Group" has the same meaning as in Rule 13d-3 promulgated under the
Exchange Act as in effect on the date hereof; provided that for purposes of this
Agreement, a "Group" shall not include any Group the formation of which has not
been publicly announced and with respect

<PAGE>

                                                                               5

to which there is no publicly available information indicating that Persons are
acting as part of such Group unless W knows of the existence of such Group.

          "HSR Act" means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, as amended.

          "Independent Director" means (i) if Parent has securities listed or
traded on any national securities exchange or Interdealer Quotation System, a
Director of Parent that (A) is not an Affiliate or Associate of W, (B) is not an
officer or employee of Parent or its Subsidiaries and (C) is otherwise an
"independent director" within the meaning of the rules or regulations of such
national securities exchange or Interdealer Quotation System and (ii) if Parent
does not have securities so listed or traded, a Director of Parent that (A) is
not an Affiliate or Associate of W, (B) is not an officer or employee of Parent
or its Subsidiaries and (C) does not have any relationship with Parent which, in
the opinion of the Board of Directors and a Determination of the Committee of
Independent Directors at the time of the nomination, appointment or election of
such Director, would interfere with such Director's exercise of independent
judgment in carrying out his or her responsibilities as a Director. Persons who
have a Disqualifying Relationship with Parent shall not qualify as Independent
Directors.

          "Initial Other Holder Position" means, with respect to any Other
Holder, the number of shares of Common Stock beneficially owned by such Other
Holder immediately following the Effective Time. For purposes of this
definition, the number of shares of Common Stock beneficially owned by such
Other Holder immediately following the Effective Time shall be calculated
assuming the conversion, exchange or exercise into or for shares of Common Stock
of all Voting Securities beneficially owned by such Other Holder at such time.

          "Initial Ownership Percentage" means the Ownership Percentage
represented by the number of shares of Common Stock beneficially owned by W
immediately following the Effective Time. For purposes of this definition, the
number of shares of Common Stock beneficially owned by W immediately following
the Effective Time shall be calculated assuming the conversion, exchange or
exercise into or for shares of Common Stock of all Voting Securities
beneficially owned by W at such time.

          "Initial W Position" means the sum of (i) the number of shares of
Common Stock beneficially owned by W and its Affiliates immediately prior to the
Closing, (ii) the number of shares of Common Stock issued to W at the Closing
pursuant to Section 8.09 of the Merger Agreement, (iii) the number of shares of
Common Stock received by W and its Affiliates as Merger Consideration (as
defined in the Merger Agreement), (iv) the number of shares of Common Stock into
which the shares of Series B Preferred Stock beneficially owned by W and its
Affiliates immediately following the Effective Time are convertible immediately
following the Effective Time, and (v) the number of shares of Common Stock into
which any shares of Series B Preferred Stock purchased by W and its Affiliates
pursuant to Section 8.21 of the Merger Agreement are convertible after the
Effective Time.

          "Interdealer Quotation System" means any of (i) the NASDAQ National
Market, (ii) the NASDAQ SmallCap Market and (iii) the NASDAQ BBX (Bulletin Board
Exchange), unless NASDAQ shall be registered as a national securities exchange
after the date hereof.

<PAGE>

                                                                               6

          "NASDAQ" means The NASDAQ Stock Market, Inc.

          "Other Holder" means each Person listed on the signature pages hereof
under the heading "Other Holders," provided that any employee of Parent or any
Subsidiary of Parent shall be deemed to be an Other Holder solely in his or her
capacity as a holder of Voting Securities and/or Voting Security Equivalents,
and provided, further, that, for the avoidance of doubt, no director shall be
required to take any action that would violate such director's fiduciary duty.

          "Ownership Percentage" means, with respect to the number of shares of
Common Stock (other than Post-Closing Shares) beneficially owned by any Person
on any date (the "Designated Securities"), the percentage of all shares of
Common Stock (other than Post-Closing Shares) outstanding on such date that is
represented by the Designated Securities. For purposes of this definition, the
number of shares of Common Stock beneficially owned by any Person or outstanding
on any date shall be calculated assuming the conversion, exchange or exercise
into or for shares of Common Stock of all Voting Securities beneficially owned
by such Person on such date or outstanding on such date, as the case may be.

          "Permitted Transferee" means:

          (i) with respect to any WCAS Securityholder and any Permitted
Transferee of a WCAS Securityholder, (A) any other WCAS Securityholder, (B) any
direct or indirect wholly-owned subsidiary of any WCAS Securityholder, (C) in
connection with a Transfer by a WCAS Securityholder to its partners, members or
shareholders for no consideration pro rata based on their respective percentage
interests in the applicable WCAS Securityholder, which Transfer is effected in
accordance with the terms of the partnership agreement or other organizational
document of such WCAS Securityholder, such partners, members or shareholders in
such WCAS Securityholder (a "W Distribution In Kind"), (D) the heirs, executors,
administrators, testamentary trustees, legatees or beneficiaries of any WCAS
Securityholder or Permitted Transferee of a WCAS Securityholder and (E) a trust,
corporation, partnership or other entity substantially all of the economic
interests of which are held by or for the benefit of any WCAS Securityholder,
Permitted Transferee of a WCAS Securityholder, their spouses or their children
(whether by birth or adoption); and

          (ii) with respect to any Other Holder and any Permitted Transferee of
any Other Holder, (A) any other Other Holder, (B) any direct or indirect
wholly-owned subsidiary of any Other Holder, (C) in connection with a Transfer
by any Other Holder to its partners, members or shareholders for no
consideration pro rata based on their respective percentage interests in such
Other Holder, which Transfer is effected in accordance with the terms of the
partnership agreement or other organizational document of such Other Holder,
such partners, members or shareholders in such Other Holder (an "Other Holder
Distribution In Kind"), (D) the heirs, executors, administrators, testamentary
trustees, legatees or beneficiaries of such Other Holder or Permitted Transferee
of such Other Holder and (E) a trust, corporation, partnership or other entity
substantially all of the economic interests of which are held by or for the
benefit of such Other Holder, Permitted Transferee of such Other Holder, their
spouses or their children (whether by birth or adoption).

<PAGE>

                                                                               7

          "Person" means any individual, corporation, partnership, limited
liability company, limited partnership, joint venture, association, joint-stock
company, trust, unincorporated organization or government body.

          "Post-Closing Shares" means Voting Securities acquired by W after the
date hereof pursuant to Article 10 or Section 8.21 of the Merger Agreement.

          "Primary Voting Power" means, as of any date, the aggregate number of
votes that may be cast on such date by the holders of Voting Securities
generally (other than in connection with the election of Directors). In
determining the Primary Voting Power of a particular Person that beneficially
owns Voting Securities, as of any date, the Primary Voting Power represented by
such Voting Securities shall exclude any votes that may be cast upon the
acquisition by such Person of Voting Securities upon the conversion, exchange or
exercise of any Voting Security Equivalents beneficially owned by such Person on
such date.

          "Qualifying Asset Sale" means the sale, lease, transfer, conveyance or
other disposition, in one or a series of related transactions, of all or
substantially all of the property and assets of Parent and its Subsidiaries,
taken as a whole, including goodwill and corporate franchises, to any Person or
Group of Persons (other than any Subsidiary of Parent); provided that in no
event shall any such sale be deemed to be a Qualifying Asset Sale unless the
property and assets involved produced more than two-thirds of Parent's
consolidated annual revenues in at least two of the prior three fiscal years or
more than two-thirds of Parent's consolidated annual earnings before interest,
taxes, depreciation and amortization in at least two of the prior three fiscal
years.

          "Rule 13e-3 Transaction" means a Rule 13e-3 transaction as defined in
Rule 13e-3 promulgated under the Exchange Act.

          "Securities Act" means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.

          "Series A Designee" means Campbell B. Lanier, III and William B.
Timmerman and any Director thereafter appointed to the Board of Directors or
elected by the holders of the Series A Preferred Stock, voting as a separate
class, pursuant to the Certificate of Designations of the Series A Preferred
Stock.

          "Series A Preferred Stock" means the 8% Series A Convertible
Redeemable Preferred Stock, par value $0.01 per share, of Parent.

          "Series B Designee" means the Director or Directors who are appointed
to the Board of Directors as of the Effective Time as the Series B Designees and
any Director thereafter appointed to the Board of Directors or elected by the
holders of the Series B Preferred Stock, voting as a separate class, pursuant to
the Certificate of Designations of the Series B Preferred Stock.

          "Series B Preferred Stock" means the 8% Series B Convertible
Redeemable Preferred Stock, par value $0.01 per share, of Parent.

<PAGE>

                                                                               8

          "Subsidiary" has the same meaning as in Rule 12b-2 promulgated under
the Exchange Act as in effect on the date hereof.

          "Transfer" means, directly or indirectly, to sell, transfer, assign,
distribute, pledge, encumber, hypothecate, or similarly dispose of, either
voluntarily or involuntarily, or to enter into any contract, option or other
arrangement or understanding with respect to the sale, transfer, assignment,
distribution, pledge, encumbrance, hypothecation or similar disposition of,
whether by operation of law or otherwise, any Voting Securities or Voting
Security Equivalents or any interest in any Voting Securities or Voting Security
Equivalents; provided that any liquidation, dissolution or other termination of
a holder of Voting Securities or Voting Security Equivalents, shall not be
deemed a "Transfer" of any Voting Securities or Voting Security Equivalents or
any interest in any Voting Securities or Voting Security Equivalents owned by
such holder.

          "Voting Power" means, as of any date, the aggregate number of votes
that may be cast on such date by the holders of Voting Securities generally
(other than in connection with the election of Directors). In determining the
Voting Power of a particular Person that beneficially owns Voting Securities, as
of any date, the Voting Power represented by such Voting Securities shall
include, without limitation, any votes that may be cast upon the acquisition by
such Person of Voting Securities upon the conversion, exchange or exercise of
any Voting Security Equivalents beneficially owned by such Person on such date.

          "Voting Securities" means securities of Parent the holders of which
are generally entitled to vote for members of the Board of Directors and any
securities issued in respect thereof, or in substitution therefor, in connection
with any stock split, dividend or combination, or any reclassification,
recapitalization, merger, consolidation, exchange or similar reorganization. For
purposes of this definition, each share of Common Stock, each share of Series A
Preferred Stock and each share of Series B Preferred Stock shall at all times be
considered Voting Securities.

          "Voting Security Equivalents" means any warrants (including, without
limitation, the Warrants), options, rights or securities convertible into, or
exchangeable or exercisable for, Voting Securities.

          "Warrant Agreement" means the Warrant Agreement, dated as of October
6, 2003, as amended from time to time, between Parent and Mellon Investor
Services LLC, as Warrant Agent.

          "Warrants" means the Common Stock Purchase Warrants of Parent issued
pursuant to the Merger Agreement and the Warrant Agreement and any Common Stock
Purchase Warrants issued in exchange, replacement or substitution therefor.

          "WCAS CP III" means WCAS Capital Partners III, L.P.

          "WCAS Designee" means any Director designated for nomination for
election to the Board of Directors by W or its Affiliates (including, without
limitation, WCAS VIII or WCAS CP III) pursuant to this Agreement.

<PAGE>

                                                                               9

          "WCAS VIII" means Welsh, Carson, Anderson & Stowe VIII, L.P.

                                   ARTICLE II

                 RESTRICTIONS ON PURCHASES OF VOTING SECURITIES

          SECTION 2.1. Restrictions on Transfers.

          (a) W agrees and covenants that for two years following the date of
the Effective Time (the "Transfer Restriction Period"), W shall not Transfer any
Voting Securities or Voting Security Equivalents, except that during the
Transfer Restriction Period W may, subject to Sections 2.2 and 2.3, Transfer
Voting Securities and Voting Security Equivalents representing up to 10% of the
Initial W Position pursuant to (i) sales made in compliance with Rule 144 under
the Securities Act, (ii) any privately negotiated transaction or transactions
made in compliance with the Securities Act or (iii) a public offering in
accordance with the registration rights provided for in the registration rights
agreement dated as of October    , 2003, as amended from time to time, between
                              ---
Parent and the other parties thereto (the "Registration Rights Agreement");
provided that the foregoing restrictions on Transfer shall not be applicable to
any of the following Transfers (which shall not be counted in calculating such
10% limitation): (i) any Transfer of Voting Securities pursuant to W's
"piggy-back" registration rights pursuant to the Registration Rights Agreement;
(ii) any Transfer between W and its Permitted Transferees (or among W's
Permitted Transferees, provided that any such Permitted Transferee shall be
subject to the terms and conditions of this Agreement as if such Permitted
Transferee were a party hereto) in accordance with the terms of this Agreement
(except that W shall not make any W Distributions In Kind during the Transfer
Restriction Period); (iii) any Transfer pursuant to a merger or consolidation in
which Parent is a constituent corporation; (iv) any Transfer pursuant to a bona
fide tender offer or exchange offer; (v) any Transfer pursuant to a business
combination or other sale of or involving Parent; (vi) any Transfer by W made
solely to satisfy any of its indemnification obligations under Article 10 of the
Merger Agreement; or (vii) any Transfer of Warrants exercisable for up to
850,000 shares of Common Stock to any Person specified in Annex C attached
hereto; provided, further, that, in the case of clauses (iii) through (v) of
this proviso, W is in compliance with Article III.

          (b) Each Other Holder agrees and covenants that during the Transfer
Restriction Period, such Other Holder shall not Transfer any Voting Securities
or Voting Security Equivalents, except that during the Transfer Restriction
Period such Other Holder may, subject to Section 2.3, Transfer Voting Securities
and Voting Security Equivalents representing up to 10% of the Initial Other
Holder Position pursuant to (i) sales made in compliance with Rule 144 under the
Securities Act, (ii) any privately negotiated transaction or transactions made
in compliance with the Securities Act or (iii) a public offering in accordance
with the registration rights provided for in the registration rights agreement
dated as of October 29, 2002, as amended from time to time, between Parent and
the other parties thereto (the "Existing Registration Rights Agreement");
provided that the foregoing restrictions on Transfer shall not be applicable to
any of the following Transfers (which shall not be counted in calculating such
10% limitation): (i) any Transfer of Voting Securities pursuant to such Other
Holder's "piggy-back" registration rights pursuant to the Existing Registration
Rights Agreement; (ii) any Transfer between such

<PAGE>

                                                                              10

Other Holder and its Permitted Transferees (or among such Other Holder's
Permitted Transferees, provided that any such Permitted Transferee shall be
subject to the terms and conditions of this Agreement as if such Permitted
Transferee were a party hereto) in accordance with the terms of this Agreement
(except that such Other Holder shall not make any Other Holder Distributions In
Kind during the Transfer Restriction Period); (iii) any Transfer pursuant to a
merger or consolidation in which Parent is a constituent corporation; (iv) any
Transfer pursuant to a bona fide tender offer or exchange offer; or (v) any
Transfer pursuant to a business combination or other sale of or involving
Parent.

          (c) For purposes of this Section 2.1, any Transfer of Voting
Securities or Voting Security Equivalents shall be treated as a Transfer of the
number of shares of Common Stock into or for which such Voting Securities or
Voting Security Equivalents are then convertible, exchangeable or exercisable.

          SECTION 2.2. Restrictions on Transfer to Competitors.

          W shall not Transfer any Voting Securities or Voting Security
Equivalents to any Person who is a Competitor if W has actual knowledge that
such Competitor would (when taken together with such Person's Affiliates and
Associates and with any Group of which such Person forms a part) beneficially
own Voting Securities representing 10% or more of the outstanding Voting Power
immediately after such Transfer.

          SECTION 2.3. Other Transfer Restrictions.

          (a) Any Permitted Transferee of any party hereto shall be subject to
the terms and conditions of this Agreement as if such Permitted Transferee were
such party hereto. Prior to the initial acquisition of beneficial ownership of
Voting Securities by a Permitted Transferee, and as a condition thereto, each
party hereto (other than Parent) agrees (i) to cause its Permitted Transferee to
agree in writing with Parent to be bound by the terms and conditions of this
Agreement and (ii) that such party hereto shall remain directly liable for its
own performance and the performance of its Permitted Transferee of all
obligations of it and such Permitted Transferee under this Agreement. Each party
hereto agrees not to cause or permit any of its Permitted Transferees (other
than any Permitted Transferee that is a natural person, that is described in
clause (i)(D) or (ii)(D) of the definition of "Permitted Transferee" or that is
a trust described in clause (i)(E) or (ii)(E) of the definition of "Permitted
Transferee") to cease to be an Affiliate of such party (other than as a result
of a liquidation, dissolution or other termination of such party or such
Permitted Transferee) so long as such Permitted Transferee beneficially owns any
Voting Securities, and if such Permitted Transferee shall cease to be an
Affiliate of such party, such Permitted Transferee shall automatically upon the
occurrence of such event cease to be a Permitted Transferee for any purpose
under this Agreement; provided that this sentence shall not apply to any
Permitted Transferee of any party that is a Permitted Transferee of such party
described in clause (i)(C) or (ii)(C) of the definition of "Permitted
Transferee." W agrees not to Transfer any Voting Securities or Voting Security
Equivalents to any Affiliate other than a Permitted Transferee. Notwithstanding
the foregoing provisions of this Section 2.3, but subject to Section 2.3(b), any
Permitted Transferee of Voting Securities or Voting Security Equivalents shall
not be subject to the provisions of this Agreement to the extent that the
Transfer to such Permitted Transferee is in connection with (x) a W Distribution
In Kind unless W elects to cause

<PAGE>

                                                                              11

such Permitted Transferee to become bound by the provisions of this Agreement or
(y) an Other Holder Distribution In Kind unless such Other Holder elects to
cause such Permitted Transferee to become bound by the provisions of this
Agreement; provided that, in each case, such Transfer is otherwise in compliance
with this Agreement.

          (b) No transferee of Voting Securities or Voting Security Equivalents
(other than a Permitted Transferee of any party that is a Permitted Transferee
described in clause (i)(C) or (ii)(C) of the definition of "Permitted
Transferee") shall have any rights or obligations under this Agreement, except
that if W has actual knowledge that such transferee (together with its
Affiliates and with any Group of which it forms a part) would beneficially own,
immediately after such Transfer, Voting Securities representing (i) 20% or more
of the outstanding Voting Power and (ii) more of the outstanding Voting Power
than the Voting Power that is represented by Voting Securities beneficially
owned by any other Person (or Group of Persons) (any such person, a "Section 2.3
Transferee"), then such Section 2.3 Transferee shall be required, as a condition
to the effectiveness of such Transfer, to agree to be bound by Section 2.4 and
Articles III, IV and V to the same extent as W. To the extent a Section 2.3
Transferee is not an "ultimate parent entity" (as determined in accordance with
the HSR Act and the regulations promulgated thereunder), the ultimate parent
entity or entities of such Section 2.3 Transferee shall agree in writing to be
directly liable for the performance by such Section 2.3 Transferee hereunder to
the same extent that a party hereto would be liable for its Permitted
Transferees hereunder.

          SECTION 2.4. Other Stockholder Tag-Along.

          (a) If W or one of its Affiliates shall propose to Transfer any Voting
Securities beneficially owned by W or its Affiliates ("Tag-Along Securities") to
any Person or Group (other than a Permitted Transferee) that, to the actual
knowledge of W, would (when taken together with such Person's or Group's
Affiliates) beneficially own Voting Securities representing (i) 30% or more of
the outstanding Voting Power and (ii) more of the outstanding Voting Power than
the Voting Power that is represented by Voting Securities beneficially owned by
any other Person (or Group of Persons) immediately after such Transfer (a
"Tag-Along Transfer"), W shall give not less than 20 days prior written notice
of such Tag-Along Transfer to each other holder of record of Voting Securities
and/or Voting Security Equivalents (each, a "Tag-Along Offeree"). Such notice
(the "Tag-Along Notice") shall set forth the material terms and material
conditions of such proposed Tag-Along Transfer, including the name of the
proposed transferee, the number of Tag-Along Securities to be Transferred, the
purchase price per share proposed to be paid therefor and the payment terms and
type of Transfer to be effectuated.

          (b) Within 10 days after delivery of the Tag-Along Notice by W to the
Tag-Along Offerees, each such Tag-Along Offeree shall, by written notice to W,
have the opportunity and right, as a condition to the effectiveness of such
Tag-Along Transfer, to Transfer to the transferee in such proposed Tag-Along
Transfer (on the same terms and conditions and at the same price per share (on a
Common Stock equivalent basis) as W and its Affiliates) up to the number of
Common Shares beneficially owned by such Tag-Along Offeree as shall equal the
product of (x) a fraction, the numerator of which is the number of Common Shares
represented by the Tag-Along Securities, measured on an as-converted,
as-exercised basis, and the denominator of which is the aggregate number of
Common Shares beneficially owned by W and

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                                                                              12

its Affiliates as of the date of the Tag-Along Notice, multiplied by (y) the
number of Common Shares beneficially owned by such Tag-Along Offeree as of the
date of the Tag-Along Notice. At the conclusion of the 10-day period following
delivery of the Tag-Along Notice, each Tag-Along Offeree that has not delivered
to W written notice of its election to exercise its right pursuant to this
Section 2.4 shall be deemed to have rejected the offer to participate in the
Tag-Along Transfer. If the proposed transferee is unwilling to purchase, in the
aggregate, more than a specified number of Common Shares, then, if necessary,
the maximum number of Voting Securities and/or Voting Security Equivalents that
each holder of Voting Securities or Voting Security Equivalents of Parent,
including W or one of its Affiliates, may Transfer in accordance with this
Section 2.4 shall be reduced to the product of the maximum number of Common
Shares that the proposed transferee is willing to purchase, multiplied by a
fraction, the numerator of which is the number of Common Shares that such holder
proposes to Transfer hereunder (subject to the maximum amount for each holder
calculated pursuant to the preceding sentence) and the denominator of which is
the aggregate number of Common Shares that all of the holders of Voting
Securities and/or Voting Security Equivalents exercising rights under this
Section 2.4, including W and its Affiliates, propose to Transfer hereunder;
provided that, for purposes of this Section 2.4(b), "Common Shares" shall
include Voting Securities and/or Voting Security Equivalents convertible,
exchangeable or exercisable into or for shares of Common Stock, measured on an
as-converted, as-exercised basis. Notwithstanding anything contained in this
Section 2.4, there shall be no liability on the part of W or its Affiliates to
the Tag-Along Offerees under this Agreement if W or its Affiliates or the
proposed transferee in any Tag-Along Transfer determines, for any reason, not to
effect a Transfer that would obligate it hereunder to consummate a Tag-Along
Transfer. The determination of whether to effect a Transfer that would obligate
W or its Affiliates hereunder to consummate a Tag-Along Transfer shall be in the
sole and absolute discretion of W and its Affiliates.

          (c) The notice, timing, disclosure and other procedural requirements
applicable to Tag-Along Transfers set forth in this Section 2.4 shall be
modified to the extent required to comply with any applicable laws.

          SECTION 2.5. Effect of Transfers. Following the Transfer Restriction
Period, each WCAS Securityholder shall use its commercially reasonable efforts
to effect (i) any Transfers of Voting Securities and Voting Security Equivalents
that are part of a W Distribution In Kind and (ii) any Transfers of Voting
Securities or Voting Security Equivalents in an unregistered open market sale,
in the case of each of clauses (i) and (ii), that are otherwise permitted by
this Article II, in a manner that minimizes the impact of such Transfers on the
market price of the Voting Securities.

          SECTION 2.6. Transfers in Violation of Agreement Void. Any Transfer or
attempted Transfer of Voting Securities or Voting Security Equivalents in
violation of any provision of this Agreement shall be void, and Parent shall not
record any such Transfer on its books or treat any purported transferee of such
Voting Securities or Voting Security Equivalents as the owner of such Voting
Securities or Voting Security Equivalents for any purpose.

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                                                                              13

                                  ARTICLE III

           ACQUISITIONS OF VOTING SECURITIES AND BUSINESS COMBINATIONS

          SECTION 3.1. Purchases of Voting Securities. W agrees and covenants
that following the Effective Time W shall not, and shall cause each of its
Affiliates not to, acquire, offer or propose to acquire, or agree to acquire,
directly or indirectly, by purchase or otherwise, beneficial ownership of any
Voting Securities, except (i) as approved by a Determination of the Committee of
Independent Directors, (ii) upon exercise or conversion of any Voting Securities
or Voting Security Equivalents then owned by W and its Affiliates, (iii) upon
the issuance of any Voting Securities or Voting Security Equivalents, as
dividends or otherwise, in respect of securities beneficially owned by W or its
Affiliates on the date of the Effective Time or in substitution therefor, or in
connection with any stock split, dividend or combination, or any
reclassification, recapitalization, merger, consolidation, exchange or similar
reorganization, (iv) as contemplated by Section 8.21 or Article 10 of the Merger
Agreement, (v) during the Transfer Restriction Period, W and its Affiliates may
acquire, in addition to any acquisitions pursuant to clauses (i) through (iv),
in the open market or through privately negotiated transactions or from Parent,
beneficial ownership of Voting Securities as long as W and its Affiliates do
not, following any such acquisition, have an aggregate Ownership Percentage in
excess of the sum of the Initial Ownership Percentage, plus 5%, or (vi)
following the Transfer Restriction Period, W and its Affiliates may acquire, in
addition to any acquisitions pursuant to clauses (i) through (iv), in the open
market or through privately negotiated transactions or from Parent, beneficial
ownership of Voting Securities as long as W and its Affiliates do not, following
any such acquisition, have an aggregate Ownership Percentage in excess of the
sum of the Initial Ownership Percentage, plus 15%.

          SECTION 3.2. Squeeze-Outs and Business Combinations.

          (a) W agrees and covenants that it and its Affiliates shall not,
directly or indirectly, propose or effect any purchase or other acquisition of
Voting Securities or Voting Security Equivalents that they do not beneficially
own as of the Effective Time by tender offer, exchange offer, merger or other
business combination or other purchase of Voting Securities or Voting Security
Equivalents that would result in a Rule 13e-3 Transaction (other than as
permitted pursuant to Section 3.1 unless such purchases or acquisitions pursuant
to Section 3.1 would result in a Rule 13e-3 Transaction) (each, a "Squeeze-Out
Transaction") unless (i) such Squeeze-Out Transaction is approved by a
Determination of the Committee of Independent Directors and (ii) for three years
after the Effective Time, such Squeeze-Out Transaction is also conditioned upon
obtaining the approval of a majority of the Disinterested Stockholders and such
condition is satisfied.

          (b) W agrees and covenants that it and its Affiliates shall not,
directly or indirectly, propose or effect any merger or other business
combination between Parent and any Affiliate of W unless (i) such merger or
other business combination is approved by a Determination of the Committee of
Independent Directors and (ii) for three years after the Effective Time, such
merger or other business combination is also conditioned upon obtaining the
approval of a majority of the Disinterested Stockholders and such condition is
satisfied.

<PAGE>

                                                                              14

          SECTION 3.3. Interested Transactions.

          (a) Parent and W hereby agree and covenant that any issuance of shares
of capital stock of Parent or any of its Subsidiaries (other than issuances
contemplated by the terms of the Merger Agreement or required under the terms of
the Voting Securities or the Voting Security Equivalents owned by W or its
Affiliates) or sales of assets by Parent or any of the Subsidiaries of Parent to
W or any Affiliate of W shall require a Determination of the Committee of
Independent Directors to approve such issuance or sale. In addition, any
enforcement or modification, amendment or waiver of any provision of this
Agreement, the Merger Agreement, the Warrant Agreement or the Registration
Rights Agreement (collectively, the "Transaction Documents") by Parent shall
require a Determination of the Committee of Independent Directors to approve
such enforcement or modification, amendment or waiver.

          (b) Any other transactions between Parent or any of its Subsidiaries
and W or any of its Affiliates not referred to in Section 3.3(a), including,
without limitation, loans or payments of fees (but excluding (i) transactions
referred to in Sections 3.2(a) and 3.2(b), which shall be governed by Section
3.2(a) or 3.2(b), as the case may be, and (ii) any other transactions
contemplated by the terms of the Transaction Documents or the certificate of
incorporation or the bylaws of Parent or required under the terms of Voting
Securities or Voting Security Equivalents owned by W or its Affiliates) shall
require the approval of the audit committee of the Board of Directors; provided
that this Section 3.3(b) shall not apply to any transaction involving Common
Stock beneficially owned by W or its Affiliates to the extent that W and its
Affiliates, as applicable, are treated in the same manner in connection with
such transaction as all other holders of Common Stock, and W and its Affiliates
have no interest in the transaction apart from their interest as holders of
Common Stock or their interest in the Common Stock underlying any Voting
Securities beneficially owned by W or its Affiliates.

          (c) Any condition or requirement for the approval of a majority of the
Disinterested Stockholders, Determination of the Committee of Independent
Directors or approval of the audit committee as provided in this Agreement shall
be in addition to any other vote or approval required by applicable law or
otherwise.

                                   ARTICLE IV

                              CORPORATE GOVERNANCE

          SECTION 4.1. Composition of the Board of Directors.

          (a) Each of Parent and W shall use its best efforts to take such
action as is required under applicable law to cause to be appointed to the Board
of Directors, effective as of the Effective Time, the Directors referred to in
Sections 4.1(b)(i), 4.1(b)(ii) and 4.1(b)(v).

          (b) For a period of 15 months following the date of the Effective Time
(the "Initial Governance Period"), (i) WCAS VIII shall be entitled to designate
one Director for nomination for election to the Board of Directors, (ii) WCAS CP
III shall be entitled to designate one Director for nomination for election to
the Board of Directors, (iii) the holders of the Series

<PAGE>

                                                                              15

B Preferred Stock shall be entitled to elect Directors for so long as such
holders are entitled, voting as a separate class, to elect such Directors
pursuant to the Certificate of Designation of the Series B Preferred Stock, (iv)
the holders of the Series A Preferred Stock shall be entitled to elect Directors
for so long as such holders are entitled, voting as a separate class, to elect
such Directors pursuant to the Certificate of Designation of the Series A
Preferred Stock, (v) the chief executive officer of Parent shall be nominated
for election as a Director and (vi) the remaining Directors to be nominated
shall be designated by the remaining members of the Board of Directors (other
than employee members of the Board of Directors) on the date hereof (or, in the
case of clause (vi), any replacement thereof nominated or elected by such
Directors then in office).

          (c) Following the Initial Governance Period, each of WCAS VIII and
WCAS CP III shall be entitled to designate one member for nomination for
election to the Board of Directors for so long as W and its Affiliates
beneficially own Voting Securities representing a majority of the outstanding
Primary Voting Power. Following the Initial Governance Period, W shall use its
reasonable best efforts to cause its WCAS Designees to nominate, and W shall
vote in favor of, and take all other necessary or desirable actions (including,
without limitation, attending all meetings in person or by proxy for purposes of
obtaining a quorum and executing all written consents in lieu of meetings) to
cause the election of, at least three Independent Directors.

          (d) During the Initial Governance Period, the parties hereto agree not
to take any action that would cause the Board of Directors to consist of other
than 11 members. Following the Initial Governance Period, each of Parent and W
agree not to take any action that would cause the Board of Directors to have
more than 15 members prior to the third anniversary of the date of the Effective
Time.

          (e) Notwithstanding anything in this Agreement to the contrary, for so
long as W and its Affiliates beneficially own Voting Securities representing a
majority of the outstanding Primary Voting Power, Parent agrees that, following
receipt of written notice from WCAS VIII and WCAS CP III, Parent promptly shall
initiate all actions necessary to increase the size of the Board of Directors to
the number specified in such written notice (subject to the limitations set
forth in Section 4.1(d)).

          SECTION 4.2. Voting.

          (a) W agrees to vote (and use its reasonable best efforts to cause
each of its Affiliates to vote, if applicable), or to act by written consent
with respect to (and use its reasonable best efforts to cause each of its
Affiliates to act by written consent, if applicable), and shall use its
reasonable best efforts to take all other necessary or desirable actions
(including, without limitation, attending all meetings in person or by proxy for
purposes of obtaining a quorum and executing all written consents in lieu of
meetings) to cause the Directors to be designated or nominated in accordance
with Sections 4.1 and 4.3 to the Board of Directors. Parent agrees to use its
reasonable best efforts to take all necessary actions to cause the Directors be
nominated in accordance with Sections 4.1 and 4.3 to the Board of Directors.
Each of Parent and W agrees to use its reasonable best efforts to cause the
election of each such Director to the Board of Directors, including, without
limitation, by nominating such individuals to be elected as

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                                                                              16

members of the Board of Directors as provided herein and calling an annual or
special meeting of stockholders in order to ensure that the composition of the
Board of Directors shall be as set forth in this Article IV and otherwise to
give effect to the provisions of this Article IV. Each party hereto shall take
(and shall use its reasonable best efforts to cause each of its Affiliates to
take, if applicable) all other actions necessary to ensure that the certificate
of incorporation and bylaws of Parent facilitate and do not at any time conflict
with any provision of this Agreement.

          (b) Parent agrees to vote (and use its reasonable best efforts to
cause each of its Affiliates to vote, if applicable), or to act by written
consent with respect to (and use its reasonable best efforts to cause each of
its Affiliates to act by written consent, if applicable), and shall use its
reasonable best efforts to take all other necessary or desirable actions
(including, without limitation, attending all meetings in person or by proxy for
purposes of obtaining a quorum and executing all written consents in lieu of
meetings) to cause the directors to be designated or nominated in accordance
with Section 4.5 to the board of directors of each of Parent's subsidiaries
(each, a "Subsidiary Board"), and Parent agrees to use its reasonable best
efforts to cause the election of each such director to each Subsidiary Board,
including, without limitation, by nominating such individuals to be elected as
members of each Subsidiary Board as provided herein and calling an annual or
special meeting of stockholders in order to ensure that the composition of each
Subsidiary Board shall be as set forth in this Article IV and otherwise to give
effect to the provisions of this Article IV. Each party hereto shall take (and
shall use its reasonable best efforts to cause each of its Affiliates to take,
if applicable) all other actions necessary to ensure that the organizational
documents of each of Parent's subsidiaries facilitate and do not at any time
conflict with any provision of this Agreement.

          (c) During the Initial Governance Period, each of the Other Holders
agrees to vote (and use its reasonable best efforts to cause each of its
Affiliates to vote, if applicable), or to act by written consent with respect to
(and use its reasonable best efforts to cause each of its Affiliates to act by
written consent, if applicable), and shall use its reasonable best efforts to
take all other necessary or desirable actions (including, without limitation,
attending all meetings in person or by proxy for purposes of obtaining a quorum
and executing all written consents in lieu of meetings) to cause the election of
all WCAS Designees to the Board of Directors.

          SECTION 4.3. Vacancies.

          (a) During the Initial Governance Period, in the event that a vacancy
is created at any time by the death, disability, retirement, resignation or
removal (with or without cause) of any Director (other than any Series A
Designee, Series B Designee or WCAS Designee), the Committee of Independent
Directors, acting pursuant to a Determination of the Committee of Independent
Directors, shall have the right to designate a replacement to fill such vacancy
pursuant to a Determination of the Committee of Independent Directors (provided,
that, if the Director being replaced is the chief executive officer of Parent,
such Director designee shall be the successor chief executive officer of
Parent), and each of Parent, W and the Other Holders shall use its reasonable
best efforts to take such action as may be required and permitted under
applicable law to cause the Directors designated pursuant to the Determination
of the Committee of Independent Directors to be appointed or elected including,
without limitation, in the case of W and the Other Holders, by using its
reasonable best efforts to cause Directors designated by or affiliated with such
party to vote in favor of the appointment of the Director

<PAGE>

                                                                              17

designated pursuant to such Determination of the Committee of Independent
Directors. To the extent requested pursuant to a Determination of the Committee
of Independent Directors, each of W and the Other Holders shall vote (and use
its reasonable best efforts to cause each of its Affiliates to vote, if
applicable), or act by written consent with respect to (and use its reasonable
best efforts to cause each of its Affiliates to act by written consent, if
applicable, with respect to), and shall use its reasonable best efforts to take
all other necessary or desirable actions (including, without limitation,
attending all meetings in person or by proxy for purposes of obtaining a quorum
and executing all written consents in lieu of meetings) to cause the election of
any replacement Director designated as provided in the first sentence of this
Section 4.3(a). During the Initial Governance Period, W shall not (and shall use
its reasonable best efforts to cause its Affiliates not to) take any action to
cause the removal of any Director not designated or employed by W or any of its
Affiliates or elected by the holders of the Series B Preferred Stock, or
appointed to the Board of Directors, pursuant to the certificate of designations
of the Series B Preferred Stock without cause unless it is directed to do so by
a Determination of the Committee of Independent Directors, and if W is so
directed, W shall use its reasonable best efforts to take (and shall use its
reasonable best efforts to cause its Affiliates to take) all actions necessary
to effect such removal and to elect a replacement Director as provided in the
first sentence of this Section 4.3(a). For purposes of this Section 4.3, "cause"
shall mean the willful and continuous failure of a Director to substantially
perform such Director's duties to Parent or the willful engaging by a Director
in gross misconduct materially and demonstrably injurious to Parent.

          (b) For so long as W and its Affiliates beneficially own Voting
Securities representing a majority of the Primary Voting Power, in the event
that a vacancy is created at any time by death, disability, retirement,
resignation or removal (with or without cause) of any WCAS Designee, or in the
event that the size of the Board of Directors is increased pursuant to Section
4.1(e) or Section 3.01 of the bylaws of Parent, the WCAS Securityholder entitled
to designate such Director for nomination for election to the Board of Directors
(or, if no particular WCAS Securityholder is so entitled, then all WCAS
Securityholders) or the remaining WCAS Designees (even though less than a
quorum) shall have the right to designate a replacement to fill such vacancy,
and each of W, Parent and the Other Holders shall use its reasonable best
efforts to take (and shall use its reasonable best efforts to cause its
Affiliates to take, if applicable) all necessary or desirable actions as may be
required under applicable law to cause the individuals designated by such WCAS
Securityholders or WCAS Designees to be appointed or elected including, without
limitation, by using its reasonable best efforts to cause Directors designated
for nomination by such party to vote in favor of the individuals designated by
the WCAS Securityholders or remaining WCAS Designees. For so long as W and its
Affiliates beneficially own Voting Securities representing a majority of the
Primary Voting Power, Parent and the Other Holders shall not take any action
(and shall not support the taking of any action by any other Person) to cause
the removal of any WCAS Designee without cause unless it is directed to do so by
a WCAS Securityholder, and if Parent or any Other Holder is so directed, such
party shall use its reasonable best efforts to take (and shall use its
reasonable best efforts to cause its Affiliates to take) all actions necessary
to effect such removal and to elect a replacement WCAS Designee as provided in
the immediately preceding sentence.

          SECTION 4.4. Board Committees. (a) Parent shall maintain, and W shall
support (and shall use its reasonable best efforts to cause the WCAS Designees
to support)

<PAGE>

                                                                              18

Parent's maintenance of, an audit committee and a compensation committee
performing functions comparable to those customarily performed by such
committees of boards of directors of public companies in the United States and
as otherwise required by applicable law. Subject to applicable law and the
requirements of any national securities exchange or Interdealer Quotation System
on which any of Parent's securities are listed or traded, the parties hereto
shall use their reasonable best efforts to cause at least one Director
designated by W to be appointed to the compensation committee and each other
committee of the Board of Directors other than the audit committee and the
Committee of Independent Directors, and the remaining members of the
compensation committee and any other committee of the Board of Directors other
than the audit committee shall be Independent Directors and, with solely respect
to the Committee of Independent Directors, the Directors referred to in the
definition of "Committee of Independent Directors." Each of Parent and W shall
use its reasonable best efforts to take all actions to cause the audit committee
to be composed solely of Independent Directors who also qualify as independent
directors within the meaning of Section 301 of the Sarbanes-Oxley Act of 2002
and the rules and regulations promulgated thereunder or pursuant thereto by any
national securities exchange or Interdealer Quotation System on which any of
Parent's securities are listed or traded. W shall use its reasonable best
efforts to take all actions to support, including, without limitation, by using
its reasonable best efforts to cause the WCAS Designees to support, the
constitution of the audit committee as provided in the immediately preceding
sentence. Notwithstanding anything to the contrary contained in this Agreement,
any appointment of any Director to a committee shall be subject to applicable
law and the requirements of any national securities exchange or Interdealer
Quotation System on which any of Parent's securities are listed or traded.

          (b) W shall use its reasonable best efforts to take such action as may
be required under applicable law to cooperate with the Board of Directors in
connection with the formation of the Committee of Independent Directors
including, without limitation, by using its reasonable best efforts to cause the
WCAS Designees (i) to vote in favor of the formation of such committee, (ii) to
authorize such committee to retain legal, financial and other advisors without
seeking approval of such retention by the Board of Directors and (iii) to
provide that Parent shall provide appropriate funding, as determined by such
committee, for payment of the compensation of any advisors retained by such
committee. Parent shall maintain, and W shall support (and shall use its
reasonable best efforts to cause the WCAS Designees to support) Parent's
maintenance of, the Committee of Independent Directors.

          SECTION 4.5. Subsidiary Boards of Directors and Committees. The
composition requirements of each Subsidiary Board, and of each committee of each
such Subsidiary Board, shall be proportionate to the composition requirements of
the Board of Directors and of each committee thereof (other than the audit
committee), such that the WCAS Designees and the Independent Directors shall
have proportionate representation (rounded to the nearest whole number of
directors) on each such Subsidiary Board and committee thereof. The quorum and
action requirements of each Subsidiary Board, and of each committee of each such
Subsidiary Board, shall be the same as the quorum and action requirements of the
Board of Directors and of each committee thereof.

<PAGE>

                                                                              19

          SECTION 4.6. Director Expenses; Indemnity and Exculpation. Parent or
its Subsidiaries shall pay all of the reasonable out-of-pocket expenses incurred
by each Director in connection with attending the meetings of the Board of
Directors and any committee thereof and by each director in connection with
attending the meetings of each Subsidiary Board and any committee thereof, in
each case, in accordance with Parent's standard policy for travel by senior
executives. During the term of this Agreement, the certificate of incorporation
and bylaws of Parent and the certificate or articles of incorporation and bylaws
of each of Parent's Subsidiaries shall provide for indemnification and
exculpation of members of the Board of Directors and each Subsidiary Board to
the fullest extent permitted under applicable law.

          SECTION 4.7. No Amendment of Certificate of Incorporation or Bylaws;
Board Observers. (a) During the Initial Governance Period, W shall not (and
shall cause its Affiliates not to) take any action to amend the bylaws of Parent
(other than the amendment contemplated by the Merger Agreement) unless such
amendment is approved by a Determination of the Committee of Independent
Directors. In addition, both during and after the Initial Governance Period, W
shall not (and shall cause its Affiliates not to) take any action to amend the
certificate of incorporation or bylaws of Parent (other than any amendment
contemplated by the Merger Agreement) in a manner that would modify the rights
of the parties pursuant to this Agreement in any respect, unless such amendment
is approved by a Determination of the Committee of Independent Directors.

          (b) For so long as any WCAS Securityholder is subject to this
Agreement, and in addition to any other vote required by law, Parent agrees that
it shall not alter, amend or repeal, or propose to alter, amend or repeal,
whether directly or indirectly, Sections 8(B), 8(C) or 8(E) of the certificate
of incorporation of Parent, or this Section 4.7(b), if any such alteration,
amendment or repeal would (i) adversely affect the rights or obligations of any
WCAS Securityholder under Sections 8(B), 8(C) or 8(E) of the certificate of
incorporation of Parent or this Section 4.7(b) or (ii) modify or change the
rights of any WCAS Securityholder under, or modify or change the provisions of,
the bylaws of Parent or this Agreement. In addition, for so long as any WCAS
Securityholder is subject to this Agreement, and in addition to any other vote
required by law, Parent agrees that it shall not alter, amend or repeal, or
propose to alter, amend or repeal, whether directly or indirectly, any of
Section 2.03, 2.05, 2.09, 3.01, 3.04, 3.05, 3.06 or 5.02 of the bylaws of Parent
or this Section 4.7(b) if any such alteration, amendment or repeal would
adversely affect the rights or obligations of any WCAS Securityholder under the
bylaws of Parent or this Agreement.

          (c) During the periods described below in this Section 4.7(c), WCAS
VIII and WCAS CP III shall each have the right to appoint one representative
(collectively, the "Representatives") to attend each meeting of the Board of
Directors as a non-voting observer, whether such meeting is conducted in person
or by teleconference. The Representatives shall have the right to present
matters for consideration by the Board of Directors and to speak on matters
presented by others. Subject to the confidentiality provisions of this Section
4.7(c), Parent shall cause the Representatives to be provided with all
communications and materials that are provided by Parent or its consultants to
the members of the Board of Directors generally, at the same time and in the
same manner that such communications and materials are provided to such members,
including all notices, board packages, reports, presentations, minutes and

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                                                                              20

consents. The Representatives shall be entitled to meet and consult with the
senior executive management team of Parent on a quarterly basis to discuss the
quarterly and annual business plans of Parent and Parent's Subsidiaries and to
review the progress of Parent and Parent's Subsidiaries in achieving their
plans. In addition, upon request to the Chief Executive Officer of Parent, the
members of the senior executive management team of Parent shall make themselves
available during normal business hours to meet with the Representatives on an
interim basis, as the Representatives may reasonably request from time to time.
Parent shall use its reasonable best efforts to notify the Representatives of
any significant business issues or initiatives affecting Parent or Parent's
Subsidiaries, such as changes in Parent's capital structure, incurrence of any
significant indebtedness, significant business acquisitions, dispositions or
similar transactions, developments or proposals entailing a potentially
significant liability, nomination of directors, appointment or election of
senior management personnel, and adoption of contracts, plans or other
compensation arrangements covering senior management personnel. Whenever
reasonably practicable, such notice shall be provided to the Representatives in
a manner that affords the Representatives an opportunity to consult with Parent
prior to any significant action on such issues or initiatives. Upon reasonable
request by the Representatives to the Chief Executive Officer of Parent, the
Representatives shall be entitled, at their cost and expense, to inspect the
books and records and the facilities of Parent and Parent's Subsidiaries during
normal business hours and to request and receive reasonable information
regarding the financial condition and operations of Parent and Parent's
Subsidiaries. The right of each of WCAS VIII and WCAS CP III (each, a "Fund") to
appoint a Representative, and the rights of that Representative described above,
shall exist (i) solely during the periods, if any, in which such Fund does not
have the right to designate any member for nomination for election to the Board
of Directors or no person designated for nomination by such Fund under Sections
4.1(b) or 4.1(c) is serving as a member of the Board of Directors and (ii)
solely for so long as each Fund is intended to qualify as a "venture capital
operating company" under U.S. Department of Labor Regulation 29 C.F.R. Section
2510.3-101. Notwithstanding any other provision of this Section 4.7(c) to the
contrary, the Board of Directors shall have the right to keep confidential from
the Representatives for such period of time as the Board of Directors deems
reasonable any information and copies of written materials Parent is required by
law or agreement with a third party to keep confidential. As a condition of the
exercise of their rights under this Section 4.7(c), the Representatives shall
enter into such agreements or undertakings with Parent to maintain the
confidentiality of information provided to them in connection with the exercise
of such rights as Parent may reasonably request.

                                    ARTICLE V

                                 LISTING MATTERS

          SECTION 5.1. Listing. Parent shall use its reasonable best efforts to
cause the shares of Common Stock comprising the Parent Transaction Securities
(as defined in the Merger Agreement) to be approved for quotation on NASDAQ,
subject to official notice of issuance, if and to the extent that the Common
Stock is already approved for quotation on NASDAQ.

<PAGE>

                                                                              21

                                   ARTICLE VI

                                     LEGEND

          Each certificate representing Voting Securities and Voting Security
Equivalents beneficially owned by the parties hereto (other than Parent) shall,
except as otherwise provided in this Article VI, be stamped or otherwise
imprinted with a legend substantially in the following form:

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
          REGISTERED UNDER THE SECURITIES ACT OF 1933 OR APPLICABLE STATE
          SECURITIES LAWS AND ARE SUBJECT TO CERTAIN LIMITATIONS ON TRANSFER SET
          FORTH IN AN AGREEMENT DATED AS OF OCTOBER 6, 2003 BETWEEN
          ITC/\DELTACOM, INC. AND THE OTHER PARTIES THERETO. A COPY OF SUCH
          AGREEMENT IS ON FILE WITH THE SECRETARY OF ITC/\DELTACOM, INC. EXCEPT
          FOR A DISPOSITION OF SECURITIES PERMITTED BY THE PROVISIONS OF ARTICLE
          II OF SUCH AGREEMENT IF THE PROVISIONS OF SUCH ARTICLE ARE THEN IN
          EFFECT, SUCH STOP TRANSFER INSTRUCTIONS SHALL BE APPLICABLE TO ANY
          DISPOSITION OF SUCH SECURITIES AND THIS LEGEND SHALL BE STAMPED OR
          OTHERWISE IMPRINTED ON ANY CERTIFICATE REPRESENTING SUCH SECURITIES.

A certificate shall not bear such legend if (i) the holder thereof shall provide
evidence reasonably satisfactory to Parent (which at Parent's election may
include an opinion of counsel) that the Voting Securities or Voting Security
Equivalents being sold thereby may be publicly sold without registration under
the Securities Act and in compliance with the provisions of this Agreement or
(ii) the Voting Securities or Voting Security Equivalents represented by such
certificate are Transferred in a transaction registered under the Securities
Act. If any Voting Securities or Voting Security Equivalents shall cease to be
subject to the restrictions set forth in this Agreement, Parent shall, upon the
written request of the holder thereof, issue to such holder a new certificate
evidencing such Voting Securities or Voting Security Equivalents without the
second sentence of the legend (or the reference therein to this Agreement) set
forth above.

                                   ARTICLE VII

                                  MISCELLANEOUS

          SECTION 7.1. Notices. All notices, requests, claims, demands and other
communications hereunder shall be in writing and shall be given (and shall be
deemed to have been duly received if so given) by facsimile, hand delivery, by
mail (registered or certified mail, postage prepaid, return receipt requested)
or by any courier service, such as Federal Express,

<PAGE>

                                                                              22

providing proof of delivery. All communications hereunder shall be delivered to
the respective parties at the following addresses:

          if to W, to:

               W
               320 Park Avenue
               Suite 2500
               New York, New York 10022
               Attention: Jonathan M. Rather
                          Sanjay Swani
               Facsimile: (212) 893-9548

          with a copy to:

               Davis Polk & Wardwell
               450 Lexington Avenue
               New York, New York 10017
               Attention: Carole Schiffman
               Facsimile: (212) 450-3800

          if to Parent, to:

               ITC/\DeltaCom, Inc.
               1791 O.G. Skinner Drive
               West Point, Georgia 31833
               Attention: Larry F. Williams
               Facsimile: 706-385-8801

          with copies to:

               ITC/\DeltaCom, Inc.
               4092 South Parkway
               Huntsville, Alabama 35802
               Attention: Tom Mullis
               Facsimile: 256-382-3936

               Simpson Thacher & Bartlett
               425 Lexington Avenue
               New York, New York  10017
               Attention: John G. Finley
               Facsimile: 212-455-2502

          If to any other party hereto, to the address set forth under the name
of such party on the signature pages hereof.

<PAGE>

                                                                              23

          SECTION 7.2. No Waivers; Amendments. No modification, amendment or
waiver of any provision of this Agreement shall be effective against Parent or
any other party hereto, unless such modification, amendment or waiver is
approved in writing by Parent and each other party hereto (other than the Other
Holders), provided that (i) any modification, amendment or waiver approved by
Parent shall not be effective without a Determination of the Committee of
Independent Directors to approve such modification, amendment or waiver, (ii)
any modification, amendment or waiver approved by the holders of a majority of
the Voting Power represented by the Voting Securities beneficially owned by W
and its Affiliates shall be effective against each WCAS Securityholder, and
(iii) the consent of each Other Holder shall be required with respect to any
modification, amendment or waiver of Section 2.1 or Article IV to the extent
that, in each case, such Other Holder remains subject to the provisions of
Section 2.1 or Article IV, as the case may be, and either (A) the obligations of
such Other Holder are increased or (B) the rights of such Other Holder are
adversely affected. No failure or delay by any party in exercising any right,
power or privilege hereunder shall operate as waiver thereof nor shall any
single or partial exercise thereof preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The rights and
remedies herein provided shall be cumulative and not exclusive of any rights or
remedies provided by law.

          SECTION 7.3. Further Assurances. At any time or from time to time
after the date hereof, the parties agree to cooperate with each other, and at
the request of any other party, to execute and deliver any further instruments
or documents and to take all such further action as such other party may
reasonably request in order to evidence or effectuate the consummation of the
transactions contemplated by this Agreement and to otherwise carry out the
intent of the parties hereunder.

          SECTION 7.4. Enforcement of this Agreement. The Board of Directors
shall take such action as is required under applicable law, if any, to ensure
that the Determination of the Committee of Independent Directors shall be
required for Parent to seek to enforce the terms of this Agreement. The
Committee of Independent Directors, acting pursuant to a Determination of the
Committee of Independent Directors, shall have the right to enforce this
Agreement and the other Transaction Documents on behalf of Parent. Attached as
Annex D hereto is a form of resolutions to be adopted by the Board of Directors
which will authorize the Committee of Independent Directors to enforce this
Agreement and the other Transaction Documents on behalf of Parent. W agrees and
covenants that it will use its reasonable best efforts to cause its WCAS
Designees not to repeal, rescind or modify such resolutions.

          SECTION 7.5. Severability. If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced by any rule of law,
or public policy, all other conditions and provisions of this Agreement shall
nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated by this Agreement and the other
Transaction Documents is not affected in any manner adverse to any party. Upon
such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the parties as
closely as possible in a mutually acceptable manner in order that the
transactions contemplated by this Agreement and the other Transaction Documents
be consummated as originally contemplated to the fullest extent possible.

<PAGE>

                                                                              24

          SECTION 7.6. Entire Agreement; Assignment. This Agreement, the other
Transaction Documents and the Existing Registration Rights Agreement constitute
the entire agreement among the parties with respect to the subject matter hereof
and thereof and supersede, except as set forth in such agreements, all prior
agreements and undertakings, both written and oral, among the parties, or any of
them, with respect to the subject matter hereof. This Agreement shall not be
assigned by operation of law or otherwise; provided that, notwithstanding
anything to the contrary contained in this Agreement, this Agreement may be
assigned by Parent to any entity by operation of law or in connection with the
sale of all or substantially all of the assets or Parent or other business
combination involving Parent, subject to Section 7.10.

          SECTION 7.7. Parties in Interest. This Agreement shall be binding upon
and inure to the benefit of each party hereto and their respective successors
and permitted assigns.

          SECTION 7.8. Remedies.

          (a) Each party hereto acknowledges that money damages would not be an
adequate remedy in the event that any of the covenants or agreements in this
Agreement are not performed in accordance with its terms, and it is therefore
agreed that, in addition to and without limiting any other remedy or right it
may have, the non-breaching party will have the right to an injunction,
temporary restraining order or other equitable relief in any court of competent
jurisdiction enjoining any such breach and enforcing specifically the terms and
provisions hereof.

          (b) All rights, powers and remedies provided under this Agreement or
otherwise available in respect hereof at law or in equity shall be cumulative
and not alternative, and the exercise or beginning of the exercise of any
thereof by any party shall not preclude the simultaneous or later exercise of
any other such right, power or remedy by such party.

          SECTION 7.9. Governing Law; Consent to Jurisdiction. This Agreement
shall be governed by, and construed in accordance with, the laws of the State of
Delaware without giving effect to principles of conflicts of law. Except as
otherwise contemplated by the definition of "Article IV Breach" and Annex B,
each of the parties hereto hereby irrevocably and unconditionally consents to
submit to the exclusive jurisdiction of the courts of the State of New York and
of the United States of America, in each case located in the County of New York,
for any action, proceeding or investigation in any court or before any
governmental authority ("Litigation") arising out of or relating to this
Agreement and the transactions contemplated hereby and further agrees that
service of any process, summons, notice or document by U.S. registered mail to
its respective address set forth in this Agreement shall be effective service of
process for any Litigation brought against it in any such court, and each of the
parties hereto hereby irrevocably and unconditionally waives any objection to
the laying of venue of any Litigation arising out of this Agreement or the
transactions contemplated hereby in the courts of the State of New York or the
United States of America, in each case located in the County of New York, and
hereby further irrevocably and unconditionally waives and agrees not to plead or
claim in any such court that any such Litigation brought in any such court has
been brought in an inconvenient forum. EACH OF THE PARTIES IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
AND

<PAGE>

                                                                              25

ALL RIGHTS TO TRIAL BY JURY IN CONNECTION WITH ANY LITIGATION ARISING OUT OF
OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

          SECTION 7.10. Recapitalization, etc. In the event that any capital
stock or other securities are issued in respect of, in exchange for, or in
substitution of, any Voting Securities or Voting Security Equivalents by reason
of any reorganization, recapitalization, reclassification, merger,
consolidation, spin-off, partial or complete liquidation, stock dividend,
split-up, sale of assets, distribution to holders of Voting Securities and/or
Voting Security Equivalents or combination of the Voting Securities or Voting
Security Equivalents or any other change in capital structure of Parent,
appropriate adjustments shall be made with respect to the relevant provisions of
this Agreement so as to fairly and equitably preserve, as far as practicable,
the original rights and obligations of the parties hereto under this Agreement.

          SECTION 7.11. Public Statements. Parent agrees, and agrees to cause
its subsidiaries, not to use or make reference to, the name of any WCAS
Securityholder or any of its Affiliates in any public statement, announcement or
filing, in each case without the prior written consent of WCAS VIII, except as
may be required (i) by applicable law, rule or regulation, including the
Securities Act, the Exchange Act and the rules of any national securities
exchange or Interdealer Quotation System, (ii) pursuant to the rules of any
regulatory entity in the regular course of Parent's dealings with such entity as
long as such entity is advised of the confidential nature, if any, of such
information or (iii) by legal process.

          SECTION 7.12. Portfolio Company Actions. Notwithstanding any provision
of this Agreement to the contrary, (i) each WCAS Securityholder agrees that it
shall use its reasonable best efforts not to (and shall use its reasonable best
efforts to cause its Affiliates not to) direct, encourage or facilitate the
taking of any action by any portfolio company of such WCAS Securityholder or
Affiliate of such WCAS Securityholder to the extent that such action would be
prohibited by the terms of this Agreement if taken directly by such WCAS
Securityholder, and (ii) no provision of this Agreement shall bind any portfolio
company of any WCAS Securityholder and, except as provided in clause (i) above,
no WCAS Securityholder shall be liable for any actions taken by any such
portfolio company that are not caused or induced by any WCAS Securityholder or
its Affiliates.

          SECTION 7.13. HSR Filing Fees and Expenses. Parent covenants and
agrees that, in the event that any WCAS Securityholder or any of its Affiliates
is required to make a filing under the HSR Act in connection with any
transaction to which Parent is a party because such WCAS Securityholder or such
Affiliate thereof is the "ultimate parent entity" (as determined in accordance
with the HSR Act and the regulations promulgated thereunder) of Parent or the
applicable Affiliate of Parent involved in such transaction, Parent shall pay
the reasonable fees and expenses of counsel to such WCAS Securityholder or
Affiliate in preparing such filing, together with all related filing fees.

          SECTION 7.14. Non-Solicitation. W shall not, and shall cause each of
its Affiliates not to, for a period commencing on the date hereof and ending on
the third anniversary of the date hereof, without the prior written approval of
Parent, directly or indirectly solicit, encourage, entice or induce, for
employment or hire as an employee or consultant any person

<PAGE>

                                                                              26

who was an employee of BTI or any Subsidiary of BTI at any time between the date
of the Merger Agreement and the date hereof; provided that the foregoing shall
not apply to any actions taken by any portfolio company of W or any of W's
affiliated investment funds that are not caused or induced by any WCAS
Securityholder or its Affiliates. If it is ever held that the restriction placed
on W by this Section 7.14 is too onerous and is not necessary for the protection
of Parent, W agrees that any court of competent jurisdiction may impose lesser
restrictions, which such court may consider necessary or appropriate to properly
protect Parent.

          SECTION 7.15. Headings. The descriptive headings contained in this
Agreement are included for convenience of reference only and shall not affect in
any way the meaning or interpretation of this Agreement.

          SECTION 7.16. Counterparts. This Agreement may be executed and
delivered (including by facsimile transmission) in one or more counterparts, and
by the different parties hereto in separate counterparts, each of which when
executed and delivered shall be deemed to be an original but all of which taken
together shall constitute one and the same agreement.

          SECTION 7.17. Effectiveness; Termination. This Agreement shall be
effective as of the Effective Time. This Agreement shall terminate at the
earliest of (a) such time as W and its Affiliates no longer beneficially own
Voting Securities representing at least 20% of the outstanding Voting Power, (b)
a Change of Control of Parent and (c) an Article IV Breach; provided that the
covenants contained in Section 4.2 shall terminate as to each Other Holder at
the expiration of the Initial Governance Period; and provided, further, that
this Agreement shall terminate as to each Other Holder who is an employee of
Parent or any Subsidiary of Parent as of the date of this Agreement at the time
that such Other Holder ceases to be employed by Parent.

          SECTION 7.18. Obligations Imposed By Law. Any obligation imposed upon
Parent or W hereunder shall not be exclusive of, or otherwise relieve such party
of, any obligation imposed upon Parent or W by the laws of the State of
Delaware.

          SECTION 7.19. Definition of Stockholder. As used herein, the word
"stockholder" shall mean the holder of any Voting Securities.

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to
be duly executed by their respective authorized officers as of the day and year
first above written.

                                   ITC/\DELTACOM, INC.

                                   By: /s/ Douglas A. Shumate
                                       -----------------------------------------
                                       Name: Douglas A. Shumate
                                       Title: Senior Vice President-CFO

                                   WCAS SECURITYHOLDERS:

                                   WCAS CAPITAL PARTNERS III, L.P.

                                   By: WCAS CP III Associates L.L.C.,
                                       General Partner

                                   By: /s/ Jonathan M. Rather
                                       -----------------------------------------
                                       Name: Jonathan M. Rather
                                       Title: Managing Member

                                   WELSH, CARSON, ANDERSON & STOWE VIII, L.P.

                                   By: WCAS VIII Associates LLC, General Partner

                                   By: /s/ Jonathan M. Rather
                                       -----------------------------------------
                                       Name: Jonathan M. Rather
                                       Title: Managing Member

                                   WCAS INFORMATION PARTNERS, L.P.

                                   By: WCAS Info Partners, General Partner

                                   By: /s/ Jonathan M. Rather
                                       -----------------------------------------
                                       Name: Jonathan M. Rather
                                       Title: Attorney-in-fact

<PAGE>

                                   Individual investors and trusts:

                                   By: /s/ Jonathan M. Rather
                                       -----------------------------------------
                                       Jonathan M. Rather, as Attorney-in-fact
                                       for the individual investors listed
                                       below:

                                          Patrick J. Welsh
                                          Russell L. Carson
                                          Bruce K. Anderson
                                          Andrew M. Paul
                                          Thomas E. McInerney
                                          Robert A. Minicucci
                                          Anthony J. de Nicola
                                          Paul B. Queally
                                          Lawrence B. Sorrel
                                          The Estate of Rudolph E. Rupert
                                          D. Scott Mackesy
                                          Sanjay Swani
                                          Laura VanBuren
                                          Sean Traynor
                                          John Almeida
                                          Eric J. Lee
                                          Jonathan M. Rather
                                          James R. Matthews
                                          IRA f/b/o James R. Matthews
                                          IRA f/b/o Jonathan M. Rather

                                   OTHER HOLDERS:

                                   Larry F. Williams

                                   /s/ Larry F. Williams
                                   ---------------------------------------------

                                   Campbell B. Lanier, III

                                   /s/ Campbell B. Lanier, III
                                   ---------------------------------------------

<PAGE>

                                     ANNEX A

                                            Number of Shares/Warrants Owned by W
--------------------------------------------------------------------------------
Shares of Common Stock                                   29,092,067//1//
--------------------------------------------------------------------------------
Shares of Series B Preferred Stock                          350,000
--------------------------------------------------------------------------------
Common Stock Purchase Warrants                            3,000,000//2//
--------------------------------------------------------------------------------

----------
//1// The total number of shares may change due to cash in lieu of fractional
     shares issued to W as Merger Consideration (as defined in the Agreement) by
     Parent.

//2// W will offer Peter Loftin the right to purchase 250,000 of such warrants
     for settlement of any claims by Mr. Loftin against W.

<PAGE>

                                     ANNEX B

                             ARBITRATION PROCEDURES

          In the event of any unresolved dispute between Parent and W regarding
the termination of the Governance Agreement pursuant to Section 7.17(c) thereof,
Parent and W shall jointly submit such dispute to binding arbitration in New
York, New York, or such other location as mutually agreed upon by Parent and W,
in accordance with the Rules for Non-Administered Arbitration of the CPR
Institute for Dispute Resolution (the "CPR").

          Each of Parent and W shall select one arbitrator. If either party
fails to make a selection, the CPR shall select one arbitrator on behalf of such
party. The two arbitrators so selected will choose within 20 days after their
selection a third arbitrator (or, if they fail to make choice, the CPR shall
choose a third arbitrator). All three arbitrators (the "Arbitrators") shall be
neutral arbitrators and subject to CPR Rules. In connection with any such
arbitration, the following rules shall apply: (i) each of Parent and W shall
furnish to the Arbitrators such documents and information as the Arbitrators may
reasonably request and will be afforded the opportunity to present to the
Arbitrators any material relevant to the existence of any material breach by
Parent of any material provision of Article IV of the Governance Agreement and
whether Parent has cured such breach within 30 days after the receipt by Parent
of written notice of such breach from W; (ii) each of Parent and W shall have
the right to have counsel represent such party at the arbitration hearing and in
pre-arbitration proceedings; (iii) pre-hearing discovery shall be limited to
exchange or production of documents; (iv) the Arbitrators shall have the
authority to resolve any discovery disputes and to invoke an action to cease or
permit further discovery; (v) each party shall have the right to a written
transcript made of the arbitration proceedings and submit a post-hearing brief
within 20 days after the conclusion of the arbitration hearing; (vi) the
Arbitrators shall have no power or authority, under the CPR Rules or otherwise,
to (A) modify or disregard any provision of the Governance Agreement, including
this Annex B, or (B) address or resolve any issue other than the dispute
submitted to such arbitration.

          The agreed upon decision of any two of the Arbitrators shall
constitute the binding decision of the arbitration panel with respect to the
dispute (the "Arbitration Decision"). The Arbitration Decision shall be in
writing and made available to both Parent and W. Such decision need not state
the reasoning of the Arbitrators in reaching their decision. The Arbitrators
shall conduct the arbitration so that the Arbitration Decision is made or
rendered as soon as practicable, but in no event later than 30 days after the
submission of the post-hearing briefs nor later than 30 days following the
completion of the hearing, unless either period is reduced or extended by
agreement of the parties, or by the Arbitrators for cause.

          The Arbitrators shall award the costs and expenses of the arbitration,
including reasonable attorneys' fees, disbursements, and fees and expenses of
the Arbitrators and CPR, to the prevailing party as the Arbitrators see fit. Any
amount awarded in the final decision of the Arbitrators shall be paid by the
party responsible therefor to the other party within 10 business days of
rendering the Arbitrators' Decision. Each party shall have the right to enforce
the decision of the Arbitrators in any judicial proceeding.

<PAGE>

                                     ANNEX C

Transferee of Warrants: Peter Loftin and/or his Affiliates

<PAGE>

                                     ANNEX D

                        Resolutions Proposed for Adoption
                by the Board of Directors of ITC/\DeltaCom, Inc.

          WHEREAS, ITC/\DeltaCom, Inc., a Delaware corporation (the
"Corporation"), has entered into the governance agreement attached hereto as
Exhibit A (the "Governance Agreement");

          WHEREAS, pursuant to Section 7.4 of the Governance Agreement, the
Committee of Independent Directors (as defined in the Governance Agreement)
shall have the right to enforce the Governance Agreement and certain other
documents on behalf of the Corporation.

          NOW, THEREFORE, BE IT RESOLVED, that the Committee of Independent
Directors (as defined in the Governance Agreement), acting pursuant to a
Determination of the Committee of Independent Directors (as defined in the
Governance Agreement), are hereby authorized to enforce the Governance Agreement
and the other Transaction Documents (as defined in the Governance Agreement) on
behalf of the Corporation; and

          RESOLVED, FURTHER, that the Committee of Independent Directors (as
defined in the Governance Agreement), acting pursuant to a Determination of the
Committee of Independent Directors (as defined in the Governance Agreement), is
hereby authorized to take all such actions, including the initiation of
litigation or any other dispute resolution process and the enforcement of the
indemnification provisions set forth in the Merger Agreement (as defined in the
Governance Agreement), and to execute, deliver and file all such other
agreements, documents, notices and instruments, as may be determined by such
Committee of Independent Directors to be necessary or advisable in connection
with the enforcement of the Governance Agreement or any other Transaction
Document (as defined in the Governance Agreement") on behalf of the Corporation.

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