Document:

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                                                                     Exhibit 4.2

                               ITC/\DELTACOM, INC.

                AMENDED 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

                         Pursuant to Section 242 of the
                General Corporation Law of the State of Delaware

     ITC/\DeltaCom, Inc. (the "Corporation"), a corporation organized and
existing under the General Corporation Law of the State of Delaware, in
accordance with the provisions of Section 103 thereof, does hereby certify as
follows:

          1. That by resolution of the Reorganization Committee of the Board of
     Directors of the Corporation (the "Board of Directors") dated October 28,
     2002, and by a 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 (this "Certificate of Designation"), filed in the
     office of the Secretary of State of the State of Delaware on October 29,
     2002, the Corporation created, authorized and provided for the issuance of
     665,000 shares of 8% Series A Convertible Redeemable Preferred Stock, par
     value $0.01 per share, of the Corporation and established the powers,
     preferences and relative, participating, optional and other special rights
     and the qualifications, limitations or restrictions thereof.

          2. This Amended Certificate of Designation has been duly adopted in
     accordance with the provisions of Sections 228 and 242 of the General
     Corporation Law of the State of Delaware.

          3. Pursuant to the provisions of Section 242 of the General
     Corporation Law of the State of Delaware, the Corporation hereby amends and
     restates this Certificate of Designation in its entirety to read as
     follows:

1.   Designation

     1.1  Designation; Liquidation Preference

     There is hereby created out of the authorized and unissued shares of
preferred stock of the Corporation a series of preferred stock designated as the
8% Series A Convertible

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Redeemable Preferred Stock (the "Series A Preferred Stock"). The number of
shares constituting the Series A Preferred Stock shall be 665,000. The
liquidation preference of the Series A Preferred Stock shall be $100.00 per
share (the "Liquidation Preference"); provided that the Liquidation Preference
shall be subject to equitable adjustment if and whenever there shall occur a
stock split, combination or reclassification of, or other similar event
affecting, the Series A Preferred Stock.

     1.2  Capitalized Terms

     Certain capitalized terms used in this Certificate of Designation have the
meanings assigned to them in Section 8.

2.   Dividends

     2.1  Payment of Preferred Dividends

          (a) The Holders of shares of Series A Preferred Stock shall be
entitled to receive with respect to each share of Series A Preferred Stock,
when, as and if declared by the Board of Directors, out of funds legally
available for the payment of dividends, dividends (the "Preferred Dividends") in
an amount equal to the greater of (x) dividends at the rate of 8% per annum (the
"Annual Dividend Rate") of the sum of the Liquidation Preference plus the amount
of any Accumulated Dividends accrued with respect to such share and (y)
dividends (other than dividends in Common Stock payable in connection with a
stock split, reclassification or subdivision of the Common Stock) that would
have accrued with respect to such share of Series A Preferred Stock during the
applicable Dividend Period if the Holder of such share had converted such share
into Common Stock immediately prior to the record date of any dividend declared
on the Common Stock in such Dividend Period. If any dividend declared on the
Common Stock and referred to in clause (y) above is in a form other than cash,
the value of such dividend for purposes of this Section 2.1(a) shall be
determined in good faith by the Board of Directors, whose determination, in the
absence of manifest error, but subject to Section 2.1(g), shall be final and
binding upon the Corporation and the Holders of the Series A Preferred Stock.
Any Preferred Dividend referred to in clause (y) above shall be deemed to have
accrued with respect to a share of Series A Preferred Stock as of the last day
of the applicable Dividend Period. Preferred Dividends on a share of Series A
Preferred Stock shall accrue and shall be cumulative whether or not declared
from the date of issue of such share of Series A Preferred Stock and shall be
payable quarterly in arrears on April 1, July 1, October 1 and January 1 of each
year (unless, solely with respect to Preferred Dividends payable in cash, such
day is not a Business Day, in which event such Preferred Dividends shall be
payable on the next succeeding Business Day) (each such date being a "Dividend
Payment Date" and each such quarterly period being a "Dividend Period"),
commencing on the Dividend Payment Date for the Dividend Period ending on
December 31, 2002. Preferred Dividends declared by the Board of Directors which
are paid in shares of Series A Preferred Stock shall be deemed paid as of April

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1, July 1, October 1 or January 1, as the case may be, for all purposes of this
Certificate of Designation even if any such date is not a Business Day.
Preferred Dividends payable on any Dividend Payment Date shall be payable to the
Holders of shares of Series A Preferred Stock as they appear on the stock
register of the Corporation at the close of business on the corresponding
Dividend Payment Record Date. As used herein, the term "Dividend Payment Record
Date" means, with respect to the Preferred Dividends payable on April 1, July 1,
October 1 and January 1, respectively, of each year, the preceding March 15,
June 15, September 15 and December 15 (unless such day is not a Business Day, in
which event such Dividend Payment Record Date shall be the next succeeding
Business Day), or such other date, not more than 60 days or less than ten days
preceding the Dividend Payment Date, as shall be fixed as the record date by the
Board of Directors.

          (b) The dividend rate for Preferred Dividends payable in the amount
specified in and pursuant to clause (x) of Section 2.1(a) with respect to each
full Dividend Period shall be computed by dividing the Annual Dividend Rate by
four. The dividend rate for such Preferred Dividends payable on the initial
Dividend Payment Date and with respect to any other period other than a full
Dividend Period shall be computed on the basis of a 365-day year and the actual
number of days elapsed in the period with respect to which such Preferred
Dividends are payable. Except as otherwise provided in this Certificate of
Designation, the Series A Preferred Stock shall not be entitled to any
dividends, whether payable in cash, property or securities, in addition to the
Preferred Dividends as provided in this Section 2.1. No interest or sum of money
or other property or securities in lieu of interest shall be payable in respect
of any accumulated and unpaid Preferred Dividends.

          (c) Accumulated Dividends may be declared and paid on any date,
without reference to any regular Dividend Payment Date or Dividend Payment
Record Date, to Holders of Series A Preferred Stock as they appear on the stock
register of the Corporation at the close of business on the date fixed as the
record date for such payment by the Board of Directors.

          (d) Any Preferred Dividend payable in the amount specified in and
pursuant to clause (x) of Section 2.1(a) may be paid, in the sole discretion of
the Corporation, (i) in cash, (ii) in shares of Series A Preferred Stock or
(iii) in a combination of cash and shares of Series A Preferred Stock. Any
Preferred Dividend payable in the amount specified in and pursuant to clause (y)
of Section 2.1(a) shall be payable in the same form as the dividend referred to
in such clause (y) that has been declared on the Common Stock in the applicable
Dividend Period. Each share of Series A Preferred Stock issued in payment of a
Preferred Dividend shall be valued, solely for purposes of determining the
number of shares of Series A Preferred Stock to be issued as a Preferred
Dividend, at the Liquidation Preference thereof and shall, upon issuance, be
duly and validly issued, fully paid and non-assessable, free of all Liens and
not subject to preemptive rights. If any such Preferred Dividend would result in
the issuance of a fractional share of Series A Preferred Stock, the Corporation,
in its sole discretion, may either pay such fractional share or round such
fractional share up to the nearest whole share of Series A Preferred Stock.
Except to

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the extent otherwise required by the NASDAQ Marketplace Rules (if applicable) or
the rules, regulations, interpretations and practices of the Transfer Agent or
any securities exchange on which the Common Stock is traded, or by any other
applicable law or regulation, (i) fractional shares of Series A Preferred Stock
issued in payment of any Preferred Dividend shall be rounded up to the nearest
one-ten thousandth (.0001) of a share, and (ii) any Preferred Dividend payable
in cash shall be rounded up to the nearest cent.

          (e) Payment of a Preferred Dividend in shares of Series A Preferred
Stock to a Holder of the Series A Preferred Stock shall be made by delivering a
certificate or certificates evidencing such shares, which shall be dated as of
the applicable Dividend Payment Date, to such Holder after the applicable
Dividend Payment Date at such Holder's address as it shall appear on the stock
register of the Corporation at the close of business on the Dividend Payment
Record Date for such Dividend Payment Date.

          (f) All Preferred Dividends shall be paid pro rata to the Holders of
the Series A Preferred Stock entitled thereto.

          (g) So long as the Initial Holders and their Affiliates are the
beneficial and record owners of at least a majority of the shares of Series A
Preferred Stock then outstanding, the Corporation 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 respect to the value of any
dividend declared on the Common Stock referred to in clause (y) of the first
sentence of Section 2.1(a) that is in a form 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 value of such dividend by giving the
Corporation written notice of such objection within ten Business Days after
their receipt of the Corporation's written notice of such determination, and
such objection is not withdrawn, the Corporation shall retain, at the
Corporation's sole cost, an Independent Appraiser to determine the value of such
dividend. The determination of such Independent Appraiser with respect to the
value of such dividend, or, if the Corporation is not required to retain an
Independent Appraiser pursuant to this Section 2.1(g), but retains an
Independent Appraiser pursuant to the Series B Certificate of Designation to
determine the value of such dividend for purposes of the Series B Certificate of
Designation, the determination of such other Independent Appraiser with respect
to the value of such dividend, shall be final and binding upon the Corporation
and the Holders of the Series A Preferred Stock. Any written notice required to
be given by the Corporation or the Required Initial Holders pursuant to this
Section 2.1(g) shall be given in the manner, and with the effect, provided in
Section 7.5(b).

     2.2  Declaration of Dividends and Distributions

          (a) So long as any shares of the Series A Preferred Stock are
outstanding, (i) no dividends, except as provided in Section 2.2(d) and except
as described in the last sentence of this Section 2.2(a), shall be declared or
paid or set apart for payment and no other distribution

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shall be declared or made upon any Parity Securities, nor (ii) shall any Parity
Securities be redeemed, purchased or otherwise acquired for any consideration
(or any moneys be paid to or made available for a sinking fund for the
redemption of any Parity Securities) by the Corporation or any of its
subsidiaries (except by conversion into or exchange for Parity Securities or
Junior Securities), unless (x) in the case of clause (i) above, all Accumulated
Dividends on the outstanding Series A Preferred Stock have been or
contemporaneously are declared and paid or declared and sufficient funds for the
payment thereof are set apart for such payment on or prior to the date of
payment of such dividends or the making of such other distributions on such
Parity Securities and (y) in the case of clause (ii) above, the Corporation
shall contemporaneously redeem, purchase or otherwise acquire for consideration
a pro rata portion of the Series A Preferred Stock then outstanding, which pro
rata portion shall be calculated based on the aggregate redemption, purchase or
other acquisition price which would be payable to the Holders of the Series A
Preferred Stock and the holders of the class or series of Parity Securities
being so redeemed, purchased or otherwise acquired to redeem the total number of
shares of the Series A Preferred Stock and of each such class or series of
Parity Securities then outstanding. Any redemption of Series A Preferred Stock
in accordance with the immediately preceding sentence shall be deemed to be a
redemption at the option of the Corporation and shall be subject to, and
effected in accordance with, Sections 5.1 and 5.3. Notwithstanding the
foregoing, if Accumulated Dividends are not paid in full or sufficient funds for
the payment thereof are not set aside, as aforesaid, the Corporation may declare
and pay or set aside sufficient funds for payment of accrued and unpaid
dividends on Parity Securities for past dividend periods if and to the extent
that, prior thereto or contemporaneously therewith, the Corporation shall
declare and pay or set aside sufficient funds for the payment of Accumulated
Dividends on the outstanding Series A Preferred Stock ratably in proportion to
the respective dollar amounts of all Accumulated Dividends then payable on the
outstanding Series A Preferred Stock and all such accrued and unpaid dividends
then payable on such Parity Securities.

          (b) So long as any shares of the Series A Preferred Stock are
outstanding, no dividends, except as provided in Section 2.2(d), shall be
declared or paid or set apart for payment and no other distribution shall be
declared or made upon Junior Securities, nor shall any Junior Securities be
redeemed, purchased or otherwise acquired (any such dividend, distribution,
redemption, purchase or other acquisition being hereinafter referred to as a
"Junior Securities Distribution") for any consideration (or any moneys be paid
to or made available for a sinking fund for the redemption of any Junior
Securities) by the Corporation or any of its subsidiaries (except by conversion
into or exchange for Junior Securities), unless in each case (i) all Accumulated
Dividends on the outstanding Series A Preferred Stock and all accrued and unpaid
dividends on any outstanding Parity Securities for all past dividend periods
with respect to such Parity Securities shall have been paid or sufficient funds
set aside for the payment thereof and (ii) sufficient funds shall have been paid
or set apart for the payment of Preferred Dividends for the current Dividend
Period with respect to the Series A Preferred Stock and for the payment of any
dividends for the current dividend period with respect to such Parity
Securities.

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          (c) No Preferred Dividends may be declared, made or paid or funds set
apart for the payment of Preferred Dividends upon any outstanding share of
Series A Preferred Stock with respect to any Dividend Period unless all
dividends which are accrued and payable with respect to preceding dividend
periods upon all outstanding Senior Securities shall have been declared and paid
or sufficient funds for the payment thereof shall have been set apart for the
payment of such dividends.

          (d) Notwithstanding anything in this Section 2.2 or any other
provision of this Certificate of Designation to the contrary, the Corporation
shall have the power to (i) declare and pay dividends or make distributions on
Parity Securities which are payable solely in additional Parity Securities or in
Junior Securities and on Junior Securities which are payable solely in
additional Junior Securities and (ii) redeem, purchase or otherwise acquire
Junior Securities in exchange for Junior Securities and Parity Securities in
exchange for Parity Securities or Junior Securities.

3.   Ranking

     3.1  Ranking

     The Series A Preferred Stock shall, with respect to dividend rights and
distributions upon the liquidation, dissolution or winding-up of the
Corporation, rank as follows:

          (a) senior to all classes of Common Stock and each other class of
Capital Stock or series of preferred stock issued by the Corporation, which is
established after the date of this Certificate of Designation, the terms of
which do not expressly provide that such class or series shall rank senior to or
on a parity with the Series A Preferred Stock as to dividend rights and
distributions upon the liquidation, dissolution or winding-up of the Corporation
(each such other class or series, collectively with the Common Stock, referred
to as "Junior Securities");

          (b) on a parity with the Series B Preferred Stock and each class of
Capital Stock (other than classes of Common Stock) or series of preferred stock
issued by the Corporation, which is established after the date of this
Certificate of Designation, the terms of which expressly provide that such class
or series shall rank on a parity with the Series A Preferred Stock as to
dividend rights and distributions upon the liquidation, dissolution or
winding-up of the Corporation (the Series B Preferred Stock and each such other
class or series collectively referred to as "Parity Securities"); and

          (c) junior to each class of Capital Stock (other than classes of
Common Stock) or series of preferred stock issued by the Corporation, which is
established after the date of this Certificate of Designation, the terms of
which expressly provide that such class or series shall rank senior to the
Series A Preferred Stock as to dividend rights and distributions upon the
liquidation, dissolution or winding-up of the Corporation (collectively referred
to as "Senior Securities").

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     3.2  Reservation of Rights

     Except as otherwise expressly provided in this Certificate of Designation,
the Corporation shall have the right to amend the Certificate of Incorporation,
file certificates of designation and otherwise authorize and issue any Junior
Securities, Parity Securities or Senior Securities without restriction at any
time and from time to time.

4.   Conversion

     4.1  Conversion Rights

          (a) Each Holder of Series A Preferred Stock shall have the right, at
its option, at any time and from time to time to convert, subject to the terms
and provisions of this Section 4, any or all of such Holder's shares of Series A
Preferred Stock (including fractional shares) into a whole number of fully paid
and non-assessable shares of Common Stock equal to the product of the number of
shares of Series A Preferred Stock being so converted multiplied by the quotient
of (i) the sum of (x) the Liquidation Preference plus (y) any Accumulated
Dividends accrued with respect to such shares plus (z) any Current Period
Dividends with respect to such shares accrued to, and not including, the
Conversion Date (or such other date as is specified in Section 4.1(c)) divided
by (ii) the Conversion Price then in effect, except that with respect to any
share of Series A Preferred Stock which shall be called for redemption pursuant
to Section 5, such conversion right shall terminate at the close of business on
the Business Day immediately prior to the Redemption Date unless the Corporation
shall default in making the payment due under Section 5 upon redemption of such
share, in which case such right shall be exercisable at any time until the close
of business on the Business Day immediately prior to the date on which such
payment is made. If a Holder of Series A Preferred Stock shall exercise its
conversion right pursuant to this Section 4 in connection with an underwritten
offering of securities registered pursuant to the Securities Act of 1933, as
amended, such Holder, at its option, may condition the conversion of the
Holder's Series A Preferred Stock upon the closing with the underwriters of the
sale of securities pursuant to such offering, in which event such Series A
Preferred Stock shall not be deemed to have been converted, and the Persons
entitled to receive the Common Stock upon the conversion of such Series A
Preferred Stock shall not be deemed to have received such Common Stock, until
immediately prior to the closing of such sale of securities. Each share of
Series A Preferred Stock issued as a Preferred Dividend pursuant to Section 2
shall, as of the date of issuance of such share, have the same Conversion Price
as each share of Series A Preferred Stock outstanding immediately prior to such
issuance.

          (b) The conversion right of a Holder of Series A Preferred Stock shall
be exercised by the surrender of such Holder's certificates representing shares
of Series A Preferred Stock to be converted, duly endorsed in blank or
accompanied by proper instruments of transfer, to the Corporation or to the
Transfer Agent accompanied by a Conversion Notice.

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               (i) Any such conversion shall be deemed to have been consummated
     immediately prior to the close of business on the Conversion Date (or such
     other date and time as is specified in Section 4.1(a) or 4.1(c)), and as of
     such date each Holder converting Series A Preferred Stock shall be deemed
     to be the Holder of record of Common Stock issuable upon conversion of such
     Series A Preferred Stock notwithstanding that the share register of the
     Corporation may then be closed or that certificates representing such
     Common Stock shall not then be actually delivered to such Person.

               (ii) Immediately prior to the close of business on any Conversion
     Date (or such other date and time as is specified in Section 4.1(a) or
     4.1(c)), all rights with respect to the shares of Series A Preferred Stock
     so converted, including the rights, if any, to continue to accrue Preferred
     Dividends and receive notices, shall terminate, except the rights of
     Holders thereof to (A) receive certificates for the number of shares of
     Common Stock into which such shares of Series A Preferred Stock have been
     converted and (B) exercise the rights to which such Holders are entitled as
     Holders of Common Stock.

               (iii) As promptly as reasonably practicable after the Conversion
     Date, the Corporation shall issue and deliver to the Holder of the shares
     of Series A Preferred Stock so converted a certificate or certificates
     representing the number of whole shares of Common Stock into which such
     shares of Series A Preferred Stock shall have been converted.

               (iv) All shares of Common Stock issuable upon conversion of the
     Series A Preferred Stock shall, upon issuance, be duly and validly issued,
     fully paid and non-assessable, free of all Liens and not subject to any
     preemptive rights.

          (c) If the Conversion Date shall not be a Business Day or shall be a
date of record referred to in Section 4.2(d), then such conversion right shall
be deemed exercised on the next Business Day. Upon delivery of a Conversion
Notice to the Corporation by a Holder of Series A Preferred Stock, the right of
the Corporation to redeem the shares of Series A Preferred Stock specified in
such Conversion Notice shall terminate, regardless of whether a Redemption
Notice shall have been given pursuant to Section 5.3.

          (d) Except as provided in Sections 4.1(a), 4.2 and 4.3, the
Corporation shall make no adjustment or payment for, or have any other
obligation with respect to, any Accumulated Dividends or Current Period
Dividends accrued with respect to shares of Series A Preferred Stock in
connection with or following the conversion of such shares.

          (e) In the case of any conversion of fewer than all the shares of
Series A Preferred Stock evidenced by a certificate, the Corporation, upon such
conversion, shall execute and the Transfer Agent shall authenticate and deliver
to the Holder thereof at such address designated by such Holder, at the expense
of the Corporation, a new certificate or certificates

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representing the number of unconverted shares of Series A Preferred Stock. No
fractional shares of Common Stock shall be issued upon the conversion of the
Series A Preferred Stock. If the conversion of any shares of Series A Preferred
Stock would result in the issuance of a fractional share of Common Stock, the
Corporation, in its sole discretion, may (i) round such fractional share up to
the nearest whole share of Common Stock or (ii) in lieu thereof pay a cash
adjustment in respect of such fractional share in an amount equal to such
fractional share multiplied by the Closing Price per share of Common Stock on
the Business Day next preceding the Conversion Date.

     4.2  Adjustment of Conversion Price

     In order to prevent dilution of the conversion rights granted under this
Section 4, the Conversion Price shall be subject to adjustment from time to time
pursuant to this Section 4.2. In the event that any adjustment of the Conversion
Price as required herein results in a fraction of a cent, such Conversion Price
shall be rounded up to the nearest cent.

          (a) Except as otherwise provided in Section 4.2(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 Corporation issues or
sells, or in accordance with Section 4.2(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 4.2(b)) less than the Conversion 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 Conversion Price shall be reduced to a price determined by
multiplying the Conversion Price in effect immediately prior to such Dilutive
Issuance by a fraction, (A) 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 4.2(b), received or receivable
by the Corporation upon such Dilutive Issuance divided by the Conversion Price
in effect immediately prior to such Dilutive Issuance, and (B) 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 Conversion Price pursuant
to Section 4.1(a), the following provisions shall be applicable:

               (i) If the Corporation 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 Conversion Price in effect on the date of issuance or
     grant of such Options, then

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     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 Corporation 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 Corporation as consideration
     for the issuance or granting of all such Options, plus the minimum
     aggregate amount of additional consideration, if any, payable to the
     Corporation 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 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 Conversion 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 Corporation 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 Conversion Price is made pursuant to Section
     4.2(b)(i)) and the price per share for which Common Stock is issuable upon
     such conversion or exchange is less than the Conversion 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 Corporation 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
     Corporation 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 Corporation 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 Conversion Price shall
     be made upon 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 Conversion Price had been or are to be made
     pursuant to other provisions of this Section 4.2, no further adjustment of
     the Conversion Price shall be made by reason of such issuance or sale.

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               (iii) If there is a change at any time in (A) the aggregate
     amount of additional consideration payable to the Corporation upon the
     exercise of any Options, (B) the aggregate amount of additional
     consideration, if any, payable to the Corporation 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 Conversion Price in effect at the time of such change shall
     be readjusted to the Conversion 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 Conversion Price then in effect shall be
     readjusted to the Conversion Price which would have been in effect at the
     time of such expiration or termination if such Option or Convertible
     Securities, to the 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 4.2 shall be the amount received by the
     Corporation therefor before deduction of commissions, underwriting
     discounts or allowances or other expenses paid or incurred by the
     Corporation 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 Corporation 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 Corporation 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 4.2(b)(v), shall be
     final and binding upon the Corporation and the Holders of the Series A
     Preferred Stock. So long as the Initial Holders and their Affiliates are
     the beneficial and record owners of at least a majority of the shares of
     Series A Preferred Stock then outstanding, the Corporation shall give

                                       11

<PAGE>

     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 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 Corporation written notice of such objection within ten Business
     Days after their receipt of the Corporation's written notice of such
     determination, and such objection is not withdrawn, the Corporation shall
     retain, at the Corporation'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 Corporation is not required to retain an Independent Appraiser
     pursuant to this Section 4.2(b)(v), but retains an Independent Appraiser
     pursuant to the Series B Certificate of Designation, the Series A Warrant
     Agreement or the Series B Warrant Agreement to determine the fair value of
     such consideration for purposes of the Series B Certificate of Designation,
     the Series A Warrant Agreement 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 Corporation and the Holders of the Series A Preferred Stock. Any
     written notice required to be given by the Corporation or the Required
     Initial Holders pursuant to this Section 4.2(b)(v) shall be given in the
     manner, and with the effect, provided in Section 7.5(b).

          (c) No adjustment of the Conversion Price shall be made pursuant to
Section 4.2(a) or 4.2(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;

               (iii) the Series A Preferred Stock, including the Series A
     Preferred Stock issuable as Preferred Dividends pursuant to Section 2, or
     any shares of Common Stock or other securities issuable or payable upon
     conversion of the Series A Preferred Stock;

               (iv) any shares of Common Stock, Options or Convertible
     Securities issuable as a dividend or distribution on the Series A Preferred
     Stock in accordance with this Certificate of Designation, 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 Warrants or any shares of Common Stock or other
     securities issuable or payable upon exercise or conversion of the Warrants;

                                       12

<PAGE>

               (vi) the Series B Preferred Stock, including the Series B
     Preferred Stock issuable as dividends on the Series B Preferred Stock,
     issuable pursuant to the Series B Certificate of Designation as in effect
     on the Certificate 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 Certificate Amendment Date;

               (vii) 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 Certificate 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;

               (viii) 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
     Initial Series A Directors or any directors who are thereafter elected by
     the Holders of the Series A Preferred Stock or appointed to the Board of
     Directors pursuant to Section 7.2, 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;

               (ix) any shares of Common Stock issued or deemed to have been
     issued in a transaction for which an adjustment of the Conversion Price is
     required pursuant to Section 4.2(d); or

               (x) 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 Initial Series A Directors or any directors who are thereafter elected
     by the Holders of the Series A Preferred Stock or appointed to the Board of
     Directors pursuant to Section 7.2, in each case whether or not 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.

                                       13

<PAGE>

          (d) If a date of record should be fixed at any time, whether by the
Corporation 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 Conversion 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 4.2(b)). If a date of record should be fixed at any time, whether by the
Corporation 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 Conversion Price in effect
immediately prior to such date of record shall be proportionately increased.

          (e) If an adjustment of the Conversion Price pursuant to Section
4.2(a), 4.2(b) or 4.2(d) shall become effective as of the record date or after
the record date for the applicable Conversion Price Adjustment Event, but before
the occurrence of such Conversion Price Adjustment Event, the Corporation may
elect to defer, until after the occurrence of such Conversion Price Adjustment
Event, (i) issuance to the Holder of any shares of Series A Preferred Stock
converted after such record date and before the occurrence of such Conversion
Price Adjustment Event the additional shares of Common Stock issuable upon such
conversion in excess of the number of shares issuable on the basis of the
Conversion 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. If the Initial Holders or any of their Affiliates shall be the
beneficial and record owners of shares of Series A Preferred Stock as of the
date of any such election, the Corporation shall give or cause to be given to
such Holders written notice of such election within five Business Days after the
date of such election.

          (f) After the occurrence of any Conversion Price Adjustment Event
requiring adjustment of the Conversion Price, the Corporation shall give written
notice thereof to the Holders of Series A Preferred Stock within ten Business
Days following the occurrence of such Conversion Price Adjustment Event;
provided that if an adjustment of the Conversion Price pursuant to Section
4.2(a), 4.2(b) or 4.2(d) shall become effective as of the record date or after
the record date for such Conversion Price Adjustment Event, but before the
occurrence of such Conversion Price Adjustment Event, the Corporation shall give
such written notice within ten Business Days following such record date or
subsequent date. Such notice shall state the Conversion Price and any change in
the number of shares of Common Stock issuable upon conversion of the Series A
Preferred Stock resulting from such Conversion Price Adjustment

                                       14

<PAGE>

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 authorized officer of the Corporation. Notice of any Conversion Price
Adjustment Event shall be deemed given to the Holders of Series A Preferred
Stock (i) by the Corporation's inclusion of the information specified in the
second sentence of this Section 4.2(f) in the Corporation's current report or
next quarterly or annual report filed with the Securities and Exchange
Commission pursuant to the Exchange Act, or (ii) at the option of the
Corporation, by the Corporation'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 4.2(f).

          (g) Anything in Section 4.2 to the contrary notwithstanding, the
Corporation shall not be required to give effect to any adjustment of the
Conversion 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 of
the Conversion Price by at least 1%, and when the cumulative net effect of more
than one adjustment so determined shall be to change the Conversion Price by at
least 1%, such change of the Conversion Price shall thereupon be given effect.

     4.3 Fundamental Changes

     Upon the occurrence of a Fundamental Change, there shall be no adjustment
of the Conversion Price and each share of Series A Preferred Stock then
outstanding, without the consent of any Holder of Series A Preferred Stock
(except as set forth in the last sentence of this Section 4.3), and subject to
the Corporation's optional redemption rights pursuant to Section 5.1(b), shall
become convertible only into the kind and amount of shares of Capital Stock or
other securities (of the Corporation 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 share of Series A Preferred Stock could have been
converted 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 Corporation consolidated, into which the Corporation
merged or which merged into the Corporation, 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 or amount of Capital Stock or other
securities, cash or other property receivable upon such Fundamental Change. 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 Series A Preferred Stock, such shares of Capital Stock or other
securities, cash or other property (i) upon conversion of the Series A Preferred
Stock, if the Series A Preferred Stock shall remain outstanding following such
Fundamental Change, or (ii) upon the consummation of such Fundamental Change or
thereafter

                                       15

<PAGE>

as provided in such effective provisions, if the Series A Preferred Stock shall
not remain outstanding following such Fundamental Change. The provisions of this
Section 4.3 similarly shall apply to successive Fundamental Changes. The
provisions of this Section 4.3 shall be the sole right of Holders of Series A
Preferred Stock in connection with any Fundamental Change, and such Holders
shall have (i) no separate right to consent with respect to, and shall have no
separate vote on, such Fundamental Change (except as expressly required by
applicable law) and (ii) no other vote on such Fundamental Change (except as
provided in Section 7.1).

     4.4  Reservation of Common Stock

     The Corporation at all times shall reserve and keep available for issuance
upon the conversion of the Series A Preferred Stock such number of its
authorized but unissued shares of Common Stock as shall from time to time be
sufficient to permit the conversion of all outstanding shares of Series A
Preferred Stock, and shall take all action required to increase the authorized
number of shares of Common Stock if at any time there shall be insufficient
authorized unissued shares of Common Stock to permit such reservation or to
permit the conversion of all outstanding shares of Series A Preferred Stock.

     4.5  Taxes and Other Charges

     The issuance or delivery of certificates for Common Stock upon the
conversion of shares of Series A Preferred Stock shall be made without charge to
the converting Holder of shares of Series A Preferred Stock for such
certificates or for any tax in respect of the issuance or delivery of such
certificates or the securities represented thereby, and such certificates shall
be issued or delivered in the respective names of, or in such names as may be
directed by, the Holders of the shares of Series A Preferred Stock converted;
provided, however, that the Corporation shall not be required to pay any tax
which may be payable in respect of any transfer involved in the issuance and
delivery of any such certificate in a name other than that of the Holder of the
shares of Series A Preferred Stock converted, and the Corporation shall not be
required to issue or deliver such certificate unless or until the Person or
Persons requesting the issuance or delivery thereof shall have paid to the
Corporation the amount of such tax or shall have established to the reasonable
satisfaction of the Corporation that such tax has been paid.

5.   Redemption of Series A Preferred Stock

     5.1  Redemption at Option of the Corporation

          (a) Except as provided in Section 5.1(b), shares of the Series A
Preferred Stock may not be redeemed by the Corporation prior to the third
anniversary of the Issue Date. On or after the third anniversary of the Issue
Date, the Series A Preferred Stock may be redeemed for cash by the Corporation,
at its option, at any time and from time to time, in whole or in part, at a
redemption price per share (the "Optional Redemption Price") equal to the sum of
(x) the Liquidation Preference per share, (y) any Accumulated Dividends accrued
with respect

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<PAGE>

to such share and (z) any Current Period Dividends with respect to such share
accrued to, but not including, the Redemption Date, without interest.

          (b) If a Fundamental Change occurs at any time prior to the third
anniversary of the Issue Date, the Series A Preferred Stock may be redeemed for
cash by the Corporation, at its option, at any time (including concurrently with
the occurrence of such Fundamental Change) and from time to time, in whole or in
part, at a redemption price per share (the "Fundamental Change Redemption
Price") equal to 110% of the sum of (x) the Liquidation Preference per share,
(y) any Accumulated Dividends accrued with respect to such share and (z) any
Current Period Dividends with respect to such share accrued to, but not
including, the Redemption Date, without interest.

          (c) If fewer than all the outstanding shares of the Series A Preferred
Stock shall be redeemed pursuant to Section 5.1(a) or 5.1(b), the number of
shares to be redeemed shall be determined by the Board of Directors, consistent
with the provisions of Section 5.1(a) or 5.1(b), and the shares to be redeemed
shall be selected on a pro rata basis (with any fractional shares being rounded
up to the nearest whole share). Notwithstanding the foregoing, consistent with
the provisions of Section 5.1(a) or 5.1(b), the Corporation may redeem all, none
or any amount greater or less than the pro rata portion of shares held by any
Holder of fewer than 100 shares of Series A Preferred Stock as may be determined
by the Board of Directors.

          (d) Notwithstanding anything in this Section 5.1 to the contrary, for
so long as the Initial Holders and their Affiliates are the beneficial and
record owners of at least 50% of the shares of Series A Preferred Stock then
outstanding, the Corporation shall not redeem or exercise its rights to redeem
any shares of Series A Preferred Stock pursuant to this Section 5.1 without the
prior written consent of the Initial Holders and their Affiliates owning
beneficially and of record at least 50% of the shares of Series A Preferred
Stock then outstanding unless the Corporation concurrently redeems, purchases or
otherwise acquires a pro rata portion of each other class or series of Parity
Securities outstanding at such time, which pro rata portion shall be calculated
based on the aggregate redemption, purchase or other acquisition price which
would be payable to the Holders of the Series A Preferred Stock and the holders
of each such class or series of Parity Securities to redeem the total number of
shares of the Series A Preferred Stock and each such class or series of Parity
Securities then outstanding.

     5.2  Mandatory Redemption

          (a) Subject to the second sentence of this Section 5.2(a), the
Corporation shall redeem for cash all outstanding shares of Series A Preferred
Stock, if any, on October 29, 2012, at a redemption price per share (the
"Mandatory Redemption Price") equal to the sum of (x) the Liquidation Preference
per share, (y) any Accumulated Dividends accrued with respect to such share and
(z) any Current Period Dividends with respect to such share accrued to, but not
including, the Redemption Date, without interest. Notwithstanding anything in
this Section 5.2

                                       17

<PAGE>

to the contrary, for so long as the Initial Holders and their Affiliates are the
beneficial and record owners of at least 50% of the shares of Series A Preferred
Stock then outstanding, the Corporation shall not redeem any shares of Series A
Preferred Stock pursuant to this Section 5.2 without the prior written consent
of the Initial Holders and their Affiliates owning beneficially and of record at
least 50% of the shares of Series A Preferred Stock then outstanding unless the
Corporation concurrently redeems, purchases or otherwise acquires a pro rata
portion of each other class or series of Parity Securities outstanding at such
time, which pro rata portion shall be calculated based on the aggregate
redemption, purchase or other acquisition price which would be payable to the
Holders of the Series A Preferred Stock and the holders of each such class or
series of Parity Securities to redeem the total number of shares of the Series A
Preferred Stock and each such class or series of Parity Securities then
outstanding..

          (b) If the funds of the Corporation legally available for redemption
of shares on the Redemption Date are insufficient to redeem on such date all
outstanding shares of the Series A Preferred Stock pursuant to this Section 5.2
and the Series B Preferred Stock pursuant to the Series B Certificate of
Designation, the Corporation shall use those funds that are legally available
therefor to redeem the maximum possible number of such shares of Series A
Preferred Stock and Series B Preferred Stock ratably among the Holders of such
shares such that each Holder of Series A Preferred Stock and each Holder of
Series B Preferred Stock shall be entitled to receive such Holder's pro rata
share of such legally available funds based on the aggregate redemption price
which would be payable to the Holders of the Series A Preferred Stock pursuant
to this Section 5.2 and to the Holders of the Series B Preferred Stock pursuant
to the Series B Certificate of Designation to redeem the total number of shares
of the Series A Preferred Stock and the Series B Preferred Stock then
outstanding. The shares of Series A Preferred Stock not redeemed shall remain
outstanding and entitled to all the rights and preferences provided in this
Certificate of Designation. At any time and from time to time after October 29,
2012 when additional funds of the Corporation are legally available for the
redemption of shares of Series A Preferred Stock and Series B Preferred Stock,
the Corporation shall promptly use such funds to redeem the balance of the
shares of Series A Preferred Stock and Series B Preferred Stock, on a pro rata
basis as aforesaid, that the Corporation is obligated to redeem pursuant to this
Section 5.2 or the Series B Certificate of Designation, as the case may be, but
that it has not redeemed. If and for so long as any mandatory redemption
obligation with respect to shares of Series A Preferred Stock under this Section
5.2 has not been discharged, the Corporation shall not, and shall cause its
subsidiaries not to, (i) redeem, purchase or otherwise acquire for any
consideration any Parity Securities or discharge any mandatory or optional
redemption, sinking fund or other similar obligation in respect of any Parity
Securities, except as provided in this Section 5.2(b), or (ii) declare or make
any Junior Securities Distribution (including, without limitation, any
redemption, purchase or other acquisition of any Junior Securities for any
consideration) or discharge any mandatory or optional redemption, sinking fund
or other similar obligation in respect of any Junior Securities.

                                       18

<PAGE>

     5.3  Redemption Procedures

          (a) If the Corporation shall redeem shares of the Series A Preferred
Stock pursuant to Section 5.1 or 5.2:

               (i) In the case of a redemption pursuant to Section 5.1(a) or
     5.2(a), the Corporation shall send a Redemption Notice to the Holders of
     Series A Preferred Stock not less than 30 days nor more than 60 days prior
     to the Redemption Date, and in the case of a redemption pursuant to Section
     5.1(b) in connection with a Fundamental Change, not less than 15 days prior
     to such Fundamental Change. Neither the failure to give a Redemption Notice
     nor any defect therein shall affect the validity of the giving of notice
     for the redemption of any share of Series A Preferred Stock to be redeemed,
     except as to any Holder to whom the Corporation has failed to give such
     Redemption Notice or except as to any Holder whose Redemption Notice was
     materially defective.

               (ii) On or before any Redemption Date, each Holder of shares of
     Series A Preferred Stock to be redeemed shall surrender the certificate or
     certificates representing such shares of Series A Preferred Stock (properly
     endorsed or assigned, or transferred, if the Corporation shall so require
     and the Redemption Notice shall so state) to the Corporation or the
     Redemption Agent (if appointed) in the manner and at the place designated
     in the Redemption Notice.

               (iii) On the Redemption Date, the Corporation or the Redemption
     Agent, as applicable, shall pay the full Redemption Price in cash to the
     Holder whose name appears on such certificate or certificates as the owner
     thereof.

               (iv) The shares of Series A Preferred Stock represented by each
     certificate to be surrendered shall no longer be deemed outstanding and
     shall be automatically (and without any further action of the Corporation
     or the Holder) canceled as of the Redemption Date (unless the Corporation
     shall be in default of the payment of the Redemption Price) whether or not
     certificates for such shares are returned to the Corporation, and shall be
     retired as provided in Section 9.1.

               (v) If fewer than all the shares of Series A Preferred Stock
     represented by any certificate are to be redeemed, a new certificate shall
     be issued representing the unredeemed shares, without cost to the Holder
     thereof. Upon such redemption, the Corporation shall execute and the
     Transfer Agent shall authenticate and deliver such new certificate to the
     Holder thereof at such address designated by such Holder. If any unredeemed
     share would be a fractional share, the Corporation, in its sole discretion,
     may either issue such fractional share to such Holder or in lieu thereof
     pay to such Holder a cash adjustment for such fractional share based on the
     Redemption Price.

                                       19

<PAGE>

          (b) If a Redemption Notice shall have been given as provided in
Section 5.3(a), and except as otherwise expressly provided in this Certificate
of Designation, all rights (excluding the right to receive the Redemption Price)
of the Holders of shares of Series A Preferred Stock so called for redemption
shall cease either (i) from and after the Redemption Date (unless the
Corporation shall default in the payment of the Redemption Price, in which case
such rights shall not terminate at the Redemption Date) or (ii) if the
Corporation shall so elect and state in the Redemption Notice, from and after
the time and date (which date shall be the Redemption Date or an earlier date
not less than 15 days after the date of mailing of the Redemption Notice) on
which the Corporation shall irrevocably deposit in trust for the Holders of the
shares to be redeemed with a designated Redemption Agent as paying agent funds
in an amount sufficient to pay the Redemption Price at the office of such paying
agent on the Redemption Date. Any funds so deposited with such Redemption Agent
that shall not be required for such redemption shall be returned to the
Corporation forthwith. Subject to applicable escheat laws, any funds so set
aside by the Corporation and unclaimed at the end of one year after the
Redemption Date shall revert to the general funds of the Corporation, after
which reversion the Holders of the shares of Series A Preferred Stock so called
for redemption shall look only to the general funds of the Corporation for the
payment of the Redemption Price, without interest. Any interest accrued on funds
held by the Redemption Agent shall be paid to the Corporation from time to time.

          (c) Except as provided in Sections 5.1(a), 5.1(b) and 5.2(a), the
Corporation shall make no adjustment or payment for, or have any other
obligation with respect to, any Accumulated Dividends or Current Period
Dividends accrued with respect to shares of Series A Preferred Stock in
connection with or following the redemption of such shares.

          (d) No shares of Series A Preferred Stock may be redeemed by the
Corporation except with funds legally available for the payment of the
Redemption Price.

          (e) As provided in Section 4.1(a), and notwithstanding anything in
this Certificate of Designation to the contrary, each Holder of shares of Series
A Preferred Stock which shall be called for redemption pursuant to this Section
5 shall have the right, which shall be exercisable at any time up to the close
of business on the Business Day immediately prior to the Redemption Date, to
convert all or any portion of such shares into shares of Common Stock pursuant
to Section 4, unless the Corporation shall default in making the payment due
under this Section 5 upon redemption of such shares, in which case such right
shall be exercisable at any time until the close of business on the Business Day
immediately prior to the date on which such payment is made.

                                       20

<PAGE>

6.   Liquidation Preference

     6.1  Liquidation Preference

     Upon the occurrence of any Liquidation Event, after payment or distribution
of the assets of the Corporation (whether capital or surplus) shall be made to
or set apart for the holders of Senior Securities, and before any payment or
distribution of the assets of the Corporation (whether capital or surplus) shall
be made to or set apart for the holders of Junior Securities, the Holders of the
Series A Preferred Stock shall be entitled to receive an amount per share of
Series A Preferred Stock in cash equal to the greater of (x) the sum of (A) the
Liquidation Preference per share, (B) any Accumulated Dividends accrued with
respect to such share and (C) any Current Period Dividends with respect to such
share accrued to, but not including, the date of such Liquidation Event or (y)
the aggregate amount that would have been received with respect to the shares of
Common Stock such Holders would have received, assuming the shares of Series A
Preferred Stock had been converted into Common Stock pursuant to Section 4
immediately prior to the date of such Liquidation Event.

     6.2  Distribution on Parity Securities

     If, upon any Liquidation Event, the amounts payable with respect to the
Series A Preferred Stock pursuant to Section 6.1 and such amounts payable on all
other Parity Securities are not paid in full, the Holders of the Series A
Preferred Stock and the holders of such Parity Securities shall share pro rata
in the assets of the Corporation available for distribution in proportion to the
full distribution thereof to which each is entitled.

     6.3  Distribution of Remaining Assets

     After payment of the full amount to which Holders of the Series A Preferred
Stock are entitled pursuant to Section 6.1 upon any Liquidation Event, Holders
of the Series A Preferred Stock shall have no right or claim to any of the
remaining assets of the Corporation.

     6.4  Effect of Certain Transactions

     Neither the sale, conveyance, lease, exchange or transfer of all or
substantially all of the assets of the Corporation (for Capital Stock or other
securities, cash or other consideration) nor the consolidation or merger of the
Corporation with or into one or more entities shall be deemed to be a
Liquidation Event for purposes of this Certificate of Designation.

                                       21

<PAGE>

7.   Voting Rights

     7.1  "As Converted" Voting Rights

     The voting rights and related notice rights of Holders of the Series A
Preferred Stock set forth in this Section 7.1 are subject to, and qualified to
the extent provided by, Section 7.2, applicable law or regulation, and the
NASDAQ Marketplace Rules (if applicable) or the rules, regulations,
interpretations and practices of any securities exchange on which the Common
Stock is traded, as determined by the Board of Directors. The Holders of the
Series A Preferred Stock shall be entitled to vote on all matters on which the
Holders of Common Stock shall be entitled to vote, in the same manner and with
the same effect as the Holders of Common Stock, voting together with the Holders
of Common Stock as a single class. For this purpose, the Holders of the Series A
Preferred Stock shall be given notice of any meeting of stockholders of which
the Holders of Common Stock are given notice in accordance with the bylaws of
the Corporation. With respect to any matter on which the Holders of the Series A
Preferred Stock shall be entitled to vote together with the Holders of Common
Stock as a single class as provided in this Section 7.1, each Holder of the
Series A Preferred Stock shall have a number of votes per share of the Series A
Preferred Stock held of record by such Holder (on the record date for the
meeting of stockholders, if such matter is subject to a vote at a meeting of
stockholders, or on the effective date of any consent, if such matter is subject
to a consent of the stockholders without a meeting of stockholders), equal to
the number of shares of Common Stock into which such share of Series A Preferred
Stock is convertible pursuant to Section 4 immediately after the close of
business on such record date or effective date, as the case may be.

     7.2  Election of Directors

          (a) At and after the first annual meeting of the Corporation's
stockholders following the effective date of the Plan, and otherwise in
accordance herewith, from the Issue Date until the first record date for
determining stockholders entitled to vote upon or consent to the election of
directors to the Board of Directors on which less than 66 2/3% of the shares of
Series A Preferred Stock issued by the Corporation (whether sold by the
Corporation or issued as a Preferred Dividend and subject to adjustment to
reflect any subdivision or combination of the Corporation's outstanding Capital
Stock) remain outstanding, the Holders of the Series A Preferred Stock, voting
as a separate class, exclusive of all other stockholders, shall be entitled to
elect two directors to serve on the Board of Directors. From the first record
date for determining stockholders entitled to vote upon or consent to the
election of directors to the Board of Directors on which less than 66 2/3%, but
more than 33 1/3%, of the shares of Series A Preferred Stock issued by the
Corporation (whether sold by the Corporation or issued as a Preferred Dividend
and subject to adjustment to reflect any subdivision or combination of the
Corporation's outstanding Capital Stock) remain outstanding, the Holders of the
Series A Preferred Stock, voting as a separate class, exclusive of all other
stockholders, shall be entitled to elect one director to serve on the Board of
Directors. From and after the first record date for determining stockholders

                                       22

<PAGE>

entitled to vote upon or consent to the election of directors to the Board of
Directors on which 33 1/3% or fewer shares of Series A Preferred Stock issued by
the Corporation (whether sold by the Corporation or issued as a Preferred
Dividend and subject to adjustment to reflect any subdivision or combination of
the Corporation's outstanding Capital Stock) remain outstanding (the "Single
Class Voting Date"), the Holders of the Series A Preferred Stock shall be
entitled to vote on the election of directors, in the same manner and with the
same effect as the Holders of Common Stock, voting together with the Holders of
Common Stock as a single class in the manner provided in Section 7.1. Except as
provided in this Section 7.2(a), the Holders of the Series A Preferred Stock
shall not be entitled to vote in the election of any directors to serve on the
Board of Directors.

          (b) At any meeting held prior to the Single Class Voting Date at which
the stockholders of the Corporation are entitled to vote upon the election of
directors, the presence in person or by proxy of the Holders of shares
representing more than 50% of the voting power of the shares of Series A
Preferred Stock outstanding on the record date for such meeting shall be
required to constitute a quorum of such class for the election of directors by
such class.

          (c) Any Initial Series A Director and any director who is thereafter
elected to the Board of Directors by the Holders of the Series A Preferred Stock
prior to the Single Class Voting Date shall hold office until the earlier of (i)
the time which is immediately after the next meeting of stockholders at which
directors elected by the Holders of the Series A Preferred Stock, voting as a
separate class, exclusive of all other stockholders, are elected and (ii) such
time as the Holders of the Series A Preferred Stock shall no longer be entitled
hereunder, voting as a separate class, exclusive of all other stockholders, to
elect directors to serve on the Board of Directors, and any vacancy in respect
of any Initial Series A Director or any such other director that is filled prior
to the Single Class Voting Date shall be filled only by vote of the remaining
Initial Series A Director or the remaining director so elected by Holders of the
Series A Preferred Stock, or if there shall be no such remaining Initial Series
A Director or other director, by consent of the Holders of Series A Preferred
Stock, or at a special meeting of the Holders of the Series A Preferred Stock
duly called, or, if no such special meeting is called, at the next annual
meeting of stockholders. Except as otherwise and to the extent provided by
applicable law or regulation or by the NASDAQ Marketplace Rules (if applicable)
or the rules, regulations, interpretations and practices of any securities
exchange on which the Common Stock is traded, in connection with any consent of
Holders of Series A Preferred Stock, the consent thereby of Holders of shares
representing more than 50% of the voting power of the then outstanding shares of
Series A Preferred Stock shall be sufficient to approve or take action upon the
matters contained therein.

          (d) Prior to the Single Class Voting Date, a proper officer of the
Corporation may call a special meeting of the Holders of shares of Series A
Preferred Stock and, upon the written request of Holders of shares representing
at least 25% of the voting power of the then outstanding shares of Series A
Preferred Stock addressed and delivered to the Secretary of the

                                       23

<PAGE>

Corporation, shall call a special meeting of the Holders of shares of Series A
Preferred Stock or solicit a consent of such Holders. Such consent shall be sent
by the Corporation to the Holders of shares of Series A Preferred Stock entitled
to vote on the election of directors to the Board of Directors not later than 20
Business Days (or two Business Days, if the Initial Holders and their Affiliates
are the beneficial and record owners of at least 50% of the shares of Series A
Preferred Stock then outstanding) following such written request. Such meeting
shall be held at the earliest practicable date upon the notice required for
annual meetings of stockholders at the place for holding annual meetings of
stockholders of the Corporation, or, if none, at a place designated by the Board
of Directors. Notwithstanding the provisions of this Section 7.2(d), if the
Initial Holders and their Affiliates are not the beneficial and record owners of
at least 50% of the shares of Series A Preferred Stock then outstanding, no
consent shall be solicited and no such special meeting shall be called during a
period within the 60 days immediately preceding the date fixed for the next
annual meeting of stockholders, in which such case the election of directors
pursuant to Section 7.2 shall be held at such annual meeting of stockholders.
The provisions of the Corporation's bylaws regarding nominations of directors by
stockholders of the Corporation shall not apply to nominations of directors by
Holders of Series A Preferred Stock pursuant to this Section 7.2.

          (e) Any Initial Series A Director or any director who is thereafter
elected to the Board of Directors by the Holders of the Series A Preferred Stock
or appointed by any Initial Series A Director or any director or directors
elected by the Holders of Series A Preferred Stock, in each case prior to the
Single Class Voting Date, may be removed during such director's term of office,
either with or without cause, prior to the Single Class Voting Date by the
affirmative vote of Holders of shares representing more than 50% of the voting
power of the then outstanding shares of Series A Preferred Stock entitled to
vote, given either at a meeting of such Holders duly called for that purpose or
pursuant to a consent of such Holders without a meeting, and any vacancy created
by such removal that is filled prior to the Single Class Voting Date may be
filled only in the manner provided in this Section 7.2.

     7.3  Approval of Certain Matters

          (a) So long as any shares of Series A Preferred Stock are outstanding,
the Corporation shall not (i) amend, alter or repeal any provision of the
Certificate of Incorporation or this Certificate of Designation to alter or
change the powers, preferences or special rights of shares of Series A Preferred
Stock (whether by merger, consolidation, business combination, other
extraordinary corporate transaction or otherwise) so as to affect them
adversely, or, (ii) other than as provided in Section 2.2(a), 4.1, 4.2, 4.3, 5
or 6.1, change the Series A Preferred Stock into any other securities, cash or
other property, in the case of each of clauses (i) and (ii), without the
affirmative vote or consent of Holders of the shares representing more than 50%
of the voting power of the then outstanding shares of Series A Preferred Stock,
voting or consenting, as the case may be, as one class, given in person or by
proxy, either in writing or by means of electronic transmission, by resolutions
adopted by consent or at an annual meeting of

                                       24

<PAGE>

stockholders or at a special meeting of Holders of Series A Preferred Stock
called for such purpose; provided that any such amendment of this Certificate of
Designation that changes any dividend or other amount payable on, or the
liquidation preference of, the Series A Preferred Stock shall require the
affirmative vote or consent of Holders of the shares representing at least 66
2/3% of the voting power of the then outstanding shares of Series A Preferred
Stock, voting or consenting, as the case may be, as one class, given in person
or by proxy, either in writing or by means of electronic transmission, by
resolutions adopted by consent or at an annual meeting of stockholders or at a
special meeting of Holders of Series A Preferred Stock called for such purpose.

          (b) So long as any shares of Series A Preferred Stock are outstanding,
the Corporation shall not authorize or issue, or increase the authorized amount
of, any Parity Securities, including any additional Series A Preferred Stock
(other than (A) shares of Series A Preferred Stock or other securities issuable
or payable as Preferred Dividends on the Series A Preferred Stock as provided in
this Certificate of Designation and (B) shares of Series B Preferred Stock or
other securities issuable or payable as preferred dividends on the Series B
Preferred Stock or shares of Series B Preferred Stock otherwise issuable on or
after the Certificate Amendment Date, in each case as provided in the Series B
Certificate of Designation as in effect on the Certificate Amendment Date), or
any Senior Securities, or any security convertible into or exchangeable for any
such Parity or Senior Securities, without the affirmative vote or consent of
Holders of the shares representing more than 50% of the voting power of the then
outstanding shares of Series A Preferred Stock, voting or consenting, as the
case may be, as one class, given in person or by proxy, either in writing or by
means of electronic transmission, by resolutions adopted by consent or at an
annual meeting of stockholders or at a special meeting of Holders of Series A
Preferred Stock called for such purpose.

          (c) The consent or votes required in Sections 7.3(a) and 7.3(b) shall
be in addition to any consent or approval of Holders of the Series A Preferred
Stock which may be required by law or pursuant to any provision of the
Certificate of Incorporation.

     7.4  Other Voting Rights

     In exercising the voting rights set forth in this Section 7, each share of
Series A Preferred Stock shall have one vote per share except as otherwise
expressly provided for in this Certificate of Designation. Except as otherwise
required by applicable law or as set forth in this Certificate of Designation,
the shares of Series A Preferred Stock shall not have any relative,
participating, optional or other special voting rights and powers, and the vote
or consent of the holders of the Series A Preferred Stock shall not be required
for the taking of any corporate action.

                                       25

<PAGE>

     7.5  Notices; Notices of Record Date

          (a) So long as the Initial Holders and their Affiliates are the
beneficial and record owners of at least 50% of the shares of Series A Preferred
Stock then outstanding, in the event of:

               (i) any taking by the Corporation of a record of the holders of
     any class of securities of the Corporation 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
     Corporation or provided for in the instrument governing such class of
     securities (including, without limitation, dividends payable on the Series
     B Preferred Stock pursuant to the Series B Certificate of Designation as in
     effect on the Certificate Amendment Date and Preferred Dividends payable on
     the Series A Preferred Stock pursuant to Section 2), (B) any other issuance
     of Series B Preferred Stock after the Certificate Amendment Date pursuant
     to the Series B Certificate of Designation as in effect on the Certificate
     Amendment Date or (C) a regular quarterly or other periodic payment of
     interest in cash or securities on any issue of the Corporation'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 Corporation shall give or cause to be given to
each Holder of the Series A Preferred Stock a written notice 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
Corporation to provide any such notice required by this Section 7.5(a) shall not
affect the validity of any event, action or record required to be specified in
such notice.

          (b) Without limiting the generality of Section 7.5(a), any notice
required by Section 7.5(a) to be given to the Holders of shares of Series A
Preferred Stock 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

                                       26

<PAGE>

next Business Day, (iii) five days 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 7.5(a) shall be sent to each Holder at such Holder's
address appearing on the stock register of the Corporation.

     7.6  Amendment of Certificate of Designation

     So long as the Initial Holders and their Affiliates are the beneficial and
record owners of at least a majority of the shares of Series A Preferred Stock
then outstanding, in addition to any vote required by law or the Certificate of
Incorporation (including this Certificate of Designation), the affirmative vote
or consent of Holders of the shares representing more than 50% of the voting
power of the then outstanding shares of Series A Preferred Stock, voting or
consenting, as the case may be, as one class, given in person or by proxy,
either in writing or by means of electronic transmission, by resolutions adopted
by consent or at an annual meeting of stockholders or at a special meeting of
Holders of Series A Preferred Stock called for such purpose shall be required to
amend the Series B Certificate of Designation; provided that such vote or
consent shall not be required with respect to any proposed amendment of the
Series B Certificate of Designation (the "Proposed Series B Amendment") if the
Corporation shall previously have complied with the following provisions of this
Section 7.6 with respect to such Proposed Series B Amendment. If the Initial
Holders and their Affiliates are the beneficial and record owners of at least a
majority of the shares of Series A Preferred Stock then outstanding, and the
Board of Directors shall determine that the Corporation will not seek the
affirmative vote or consent of the Holders of the Series A Preferred Stock with
respect to a Proposed Series B Amendment pursuant to this Section 7.6 prior to
submitting such Proposed Series B Amendment to the Holders of the Series B
Preferred Stock for approval, the Corporation shall give written notice of such
Proposed Series B Amendment (which shall include the text thereof) to the
Initial Holders that are Holders on the date of such notice. If, within ten
Business Days after the Corporation shall have given such written notice to such
Initial Holders, the Required Initial Holders shall give written notice to the
Corporation that the Required Initial Holders seek to have this Certificate of
Designation amended in a manner substantially similar to such Proposed Series B
Amendment, the Board of Directors, in addition to approving such Proposed Series
B Amendment, shall approve, declare advisable and submit to the Holders of the
Series A Preferred Stock for approval such a substantially similar amendment to
this Certificate of Designation. If, within the period of ten Business Days
described in the immediately preceding sentence, the Required Initial Holders do
not provide such written notice to the Corporation that the Required Initial
Holders seek to have this Certificate of Designation so amended, or, if the
Required Initial Holders do so notify the Corporation, but the Holders of the
Series A Preferred Stock do not approve or consent to such a substantially
similar amendment to this Certificate of Designation, the Corporation shall be
deemed to have complied with this Section 7.6 with respect to such Proposed
Series B Amendment and the Holders of the Series A Preferred Stock shall have no
right to vote upon or consent to such Proposed Series B Amendment pursuant to
this Section 7.6. Any substantially similar amendment to this Certificate of
Designation approved or consented to

                                       27

<PAGE>

pursuant to this Section 7.6 shall become effective or nearly as practicable
concurrently with, or immediately prior to, the effectiveness of the Proposed
Series B Amendment. In no event shall the failure of the Required Initial
Holders to seek to have this Certificate of Designation amended in a manner
substantially similar to any Proposed Series B Amendment affect the
applicability of this Section 7.6 with respect to any subsequent Proposed Series
B Amendment. Any written notice required to be given by the Corporation or the
Required Initial Holders pursuant to this Section 7.6 shall be given in the
manner, and with the effect, provided in Section 7.5(b).

8.   Certain Definitions

     Set forth below are the meanings assigned to certain defined terms used in
this Certificate of Designation.

     8.1 "Accumulated Dividends," with respect to a share of Series A Preferred
Stock, on any date of determination, means all Preferred Dividends that have
accrued with respect of such share pursuant to Section 2.1(a) as of the Dividend
Payment Date on or immediately preceding such date of determination, but which
have not been paid. The Accumulated Dividends accrued with respect to any share
of Series A Preferred Stock shall be reduced by the amount of any Preferred
Dividends specified above which are actually paid with respect of such share as
provided in Section 2.1(c).

     8.2 "Affiliate" has the same meaning as in Rule 12b-2 under the Exchange
Act.

     8.3 "Annual Dividend Rate" has the meaning specified in Section 2.1(a).

     8.4 "Beneficial owner" or "beneficially own" has the same meaning as in
Rule 13d-3 under the Exchange Act.

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

     8.6 "Board of Directors" means the board of directors of the Corporation.

     8.7 "Business Day" means any day other than a Saturday, a Sunday or any day
on which banking institutions in The City of New York or the State of Georgia or
at a place payment is to be received are authorized by law, regulation or
executive order to remain closed. If a payment date is not a Business Day at a
place of payment, payment may be made at that place on the next succeeding
Business Day, and no interest shall accrue for the intervening period.

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<PAGE>

     8.8 "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.

     8.9 "Certificate Amendment Date" means the date on which this Amended
Certificate of Designation shall become effective under the General Corporation
Law of the State of Delaware.

     8.10 "Certificate of Incorporation" means the Restated Certificate of
Incorporation of the Corporation, as amended from time to time.

     8.11 "Closing Price" means, with respect to the Common Stock, on any date,
(i) the last sales price on the NASDAQ National Market, the NASDAQ SmallCap
Market, the OTC Bulletin Board or the NASDAQ Bulletin Board Exchange or the
principal 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 National Market, the NASDAQ SmallCap Market, the OTC
Bulletin Board or the NASDAQ Bulletin Board Exchange or the principal 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
National Market, the NASDAQ SmallCap Market, the OTC Bulletin Board or 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 such that the prices and quotations
referred to above are available for the period required hereunder, the Closing
Price per share shall be deemed to be the fair value per share of Common Stock
as determined by the Board of Directors.

     8.12 "Common Stock" means the Corporation's authorized Common Stock.

     8.13 "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 such date of determination
upon the exercise of any then outstanding Options (including, without
limitation, the 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.

     8.14 "Conversion Date" means the date the Corporation or the Transfer Agent
receives the Conversion Notice.

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<PAGE>

     8.15 "Conversion Notice" means a written notice given by a Holder of Series
A Preferred Stock to the Corporation pursuant to Section 4.1(b) stating that
such Holder elects to convert all or a portion of such Holder's shares of Series
A Preferred Stock represented by certificates delivered to the Corporation or
the Transfer Agent contemporaneously with such written notice. The Conversion
Notice shall be in substantially the form of Exhibit A hereto.

     8.16 "Conversion Price" means $5.7143 per share of Common Stock as of the
Issue Date, subject to adjustment as provided in Section 4.2.

     8.17 "Conversion Price Adjustment Event" means any event specified in
Section 4.2 resulting in an adjustment of the Conversion Price.

     8.18 "Convertible Securities" has the meaning specified in Section 4.2(b).

     8.19 "Corporation" means ITC/\DeltaCom, Inc., a Delaware corporation
organized and existing under the General Corporation Law of the State of
Delaware.

     8.20 "Current Period Dividends," with respect to a share of Series A
Preferred Stock, on any date of determination, means all Preferred Dividends
that have accrued with respect of such share pursuant to Section 2 since the
Dividend Payment Date immediately preceding such date of determination, but
which have not been paid.

     8.21 "Dilutive Issuance" has the meaning specified in Section 4.2(a).

     8.22 "Dividend Payment Date" has the meaning specified in Section 2.1(a).

     8.23 "Dividend Payment Record Date" has the meaning specified in Section
2.1(a).

     8.24 "Dividend Period" has the meaning specified in Section 2.1(a).

     8.25 "Exchange Act" means the Securities Exchange Act of 1934, as amended.

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

     8.27 "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
Corporation 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 Corporation, are converted into or exchanged for
Capital Stock (of the Corporation or another issuer) or other securities, cash
or other property.

                                       30

<PAGE>

     8.28 "Fundamental Change Redemption Price" has the meaning specified in
Section 5.1(b).

     8.29 "Holder" means a Person in whose name shares of Capital Stock are
registered on the stock register of the Corporation.

     8.30 "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
Corporation.

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

     8.32 "Initial Series A Directors" means the two directors who are
designated by the New Equity Investors for, and approved by, the Board of
Directors under the Plan.

     8.33 "Issue Date" means October 29, 2002.

     8.34 "Junior Securities" has the meaning specified in Section 3.1(a).

     8.35 "Junior Securities Distribution" has the meaning specified in Section
2.2(b).

     8.36 "Liens" means liens and charges other than liens and charges arising
under (i) any Purchase Agreement, (ii) any other agreement entered into between
the Corporation and any Holder of the Series A Preferred Stock from time to time
or (iii) any other agreement to which the Corporation is not a party.

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

     8.38 "Liquidation Preference" has the meaning specified in Section 1.1.

     8.39 "Mandatory Redemption Price" has the meaning specified in Section
5.2(a).

     8.40 "Merger Agreement" means the Agreement and Plan of Merger, dated as of
July 2, 2003, as amended from time to time, among the Corporation, BTI Telecom,
Inc., 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.

                                       31

<PAGE>

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

     8.42 "NASDAQ Marketplace Rules" means the rules, regulations,
interpretations and practices of the National Association of Securities Dealers,
Inc. and The NASDAQ Stock Market, Inc. in effect from time to time and
applicable to the Corporation.

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

     8.44 "Optional Redemption Price" has the meaning specified in Section
5.1(a).

     8.45 "Options" has the meaning specified in Section 4.2(b).

     8.46 "Parity Securities" has the meaning specified in Section 3.1(b).

     8.47 "Person" means any individual, corporation, partnership, joint
venture, association, joint-stock issuer, interest, trust or unincorporated
organization (including any subdivision or ongoing business of any such entity
or substantially all of the assets of any such entity, subdivision or business).

     8.48 "Plan" means the Corporation'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)).

     8.49 "Preferred Dividends" has the meaning specified in Section 2.1(a).

     8.50 "Proposed Series B Amendment" has the meaning specified in Section
7.6.

     8.51 "Purchase Agreements" means (i) the Purchase Agreement, dated as of
August 22, 2002, as amended from time to time, between the Corporation and SCANA
Corporation and (ii) the Purchase Agreement, dated as of August 22, 2002, as
amended from time to time, among the Corporation, ITC Holding Company, Inc.,
Campbell B. Lanier, III and the other Purchasers named therein.

     8.52 "Redemption Agent" means that Person, if any, appointed by the
Corporation to hold funds deposited by the Corporation in trust to pay to the
Holders of shares of Series A Preferred Stock to be redeemed. Any Redemption
Agent shall be (i) a national banking association or corporation organized and
doing business under the laws of the United States of America or of any state or
territory thereof or of the District of Columbia, authorized under such laws to
exercise corporate trust powers and subject to supervision or examination by
federal, state, territorial or District of Columbia authority, and having a
combined capital and surplus of

                                       32

<PAGE>

at least $50 million or (ii) an Affiliate of such a national banking association
or corporation that customarily performs the duties of redemption agent for
public securities issues.

     8.53 "Redemption Date" means the date set forth in the Redemption Notice
which is fixed for redemption of the shares of Series A Preferred Stock referred
to therein.

     8.54 "Redemption Notice" means that notice to be given by the Corporation
to the Holders notifying the Holders as to the redemption, in whole or in part,
of the Series A Preferred Stock pursuant to Section 5. The Redemption Notice
shall include the following information:

               (i) the Redemption Date and the time of day on such date;

               (ii) the total number of shares of Series A Preferred Stock to be
     redeemed and, if fewer than all the shares held by such Holder are to be
     redeemed, the number of such shares to be redeemed from such Holder;

               (iii) the Redemption Price;

               (iv) the place or places where certificates for such shares are
     to be surrendered for payment of the Redemption Price;

               (v) that dividends on the shares to be redeemed shall cease to
     accrue on such Redemption Date unless the Corporation defaults in the
     payment of the Redemption Price; and

               (vi) the name of any bank or other financial institution, if any,
     performing the duties of Redemption Agent.

The Redemption Notice shall be given by first-class mail to each record Holder
of the shares to be redeemed, at such Holder's address as such address appears
on the books of the Corporation.

     8.55 "Redemption Price" means each of the Optional Redemption Price, the
Fundamental Change Redemption Price and the Mandatory Redemption Price, as the
case may be.

     8.56 "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 such
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.

                                       33

<PAGE>

     8.57 "Reorganization Common Stock" means the Common Stock issued by the
Corporation under or in connection with the Plan, including, without limitation,
the Common Stock issued by the Corporation pursuant to the Purchase Agreements
on the effective date of the Plan.

     8.58 "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 shares of Series A
Preferred Stock outstanding on such date of determination.

     8.59 "Restricted Securities" means (i) the shares of Series A Preferred
Stock issued and sold by the Corporation pursuant to the Purchase Agreements,
(ii) the shares of Series A Preferred Stock and other securities issued by the
Corporation as Preferred Dividends on the shares of Series A Preferred Stock
referred to in clause (i), and (iii) the shares of Common Stock and other
securities issued by the Corporation upon the conversion of the shares of Series
A Preferred Stock referred to in clauses (i) and (ii).

     8.60 "Restricted Securities Legend" means the following legend:

          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 CORPORATION 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.

     8.61 "Senior Securities" has the meaning specified in Section 3.1(c).

     8.62 "Series A Preferred Stock" means the 8% Series A Convertible
Redeemable Preferred Stock of the Corporation authorized in this Certificate of
Designation.

                                       34

<PAGE>

     8.63 "Series A Warrant Agreement" means the Warrant Agreement, dated as of
October 29, 2002, between the Corporation 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 Certificate Amendment Date shall increase the number
of warrants issuable pursuant thereto.

     8.64 "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.

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

     8.66 "Series B Warrant Agreement" means the Warrant Agreement, dated as of
October 6, 2003, between the Corporation 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 Certificate Amendment Date shall increase the number
of warrants issuable pursuant thereto.

     8.67 "Single Class Voting Date" has the meaning specified in Section
7.2(a).

     8.68 "Transfer Agent" means the Person duly appointed by the Corporation in
its sole discretion to serve as transfer agent for the Series A Preferred Stock.
The Corporation may serve as Transfer Agent.

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

     8.70 "Warrants" means (i) the warrants to purchase Common Stock issued by
the Corporation pursuant to the Series A Warrant Agreement and (ii) the warrants
to purchase Common Stock issued by the Corporation pursuant to the Series B
Warrant Agreement; provided that the warrants referred to in each of clauses (i)
and (ii) have the same exercise expiration date and (subject to adjustments
pursuant to antidilution provisions of the Series A Warrant Agreement or the
Series B Warrant Agreement, as the case may be) the same exercise price as the
warrants issued pursuant to the Series A Warrant Agreement or the Series B
Warrant Agreement, as the case may be, which are outstanding as of the
Certificate Amendment Date.

9.   Other Provisions

     9.1  Status of Reacquired Shares

     Shares of Series A Preferred Stock issued and redeemed or otherwise
reacquired by the Corporation shall be retired and canceled promptly after
reacquisition thereof and, upon

                                       35

<PAGE>

compliance with the applicable requirements of Delaware law, shall have the
status of authorized but unissued shares of preferred stock of the Corporation
undesignated as to series and may, with any and all other authorized but
unissued shares of preferred stock of the Corporation, be designated or
redesignated and issued or reissued, as the case may be, as part of any series
of preferred stock of the Corporation.

     9.2  Book-Entry Registration

     Notwithstanding any other provision of this Certificate of Designation, the
Corporation shall have the right to have its Series A Preferred Stock registered
in book-entry or other electronic form. In the event of such registration, to
the extent permitted or required by the rules, regulations and practices of the
applicable book-entry or other electronic system, or by other applicable law or
regulation, the Series A Preferred Stock shall not be evidenced by physical
stock certificates, and any actions required or permitted under this Certificate
of Designation to be taken by the Corporation or any Holder of the Series A
Preferred Stock with respect to such physical stock certificates shall,
notwithstanding any other provision of this Certificate of Designation, be in
compliance with this Certificate of Designation if taken in accordance with the
rules, regulations and practices of the applicable book-entry or other
electronic system and other applicable law or regulation.

     9.3  Notices

     All notices referred to in this Certificate of Designation shall, except as
expressly provided herein, be deemed given in the manner and with the effect
provided in the General Corporation Law of the State of Delaware.

     9.4  Transfer Restrictions

     Unless the Corporation otherwise instructs the Transfer Agent, (i) all
certificates representing the Restricted Securities, and all certificates issued
upon division or combination of, or in substitution for, such certificates shall
bear a legend substantially in the form of the Restricted Securities Legend and
(ii) the Transfer Agent shall not register any attempted transfer of Restricted
Securities that is not effected in compliance with the requirements set forth in
the Restricted Securities Legend. Whenever the restrictions imposed by this
Section 9.4 shall terminate as to any securities, the Holder thereof shall be
entitled to receive from the Corporation new certificates representing such
securities that do not bear the Restricted Securities Legend.

     9.5  Beneficial Ownership

     Upon request by the Corporation from time to time, each Initial Holder
shall certify to the Corporation the number of shares of Series A Preferred
Stock, if any, then beneficially owned by such Initial Holder and such Initial
Holder's Affiliates.

                                       36

<PAGE>

     IN WITNESS WHEREOF, ITC/\DeltaCom, Inc. caused this Amended Certificate of
Designation to be signed this 6th day of October 2003.

                                            ITC/\DELTACOM, INC.

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

                                       37

<PAGE>

                                    EXHIBIT A

                            Form of Conversion Notice

Dated: [      ]
        ------

     The undersigned is the holder of record of [      ] shares of the 8%
                                                 ------
Series A Convertible Redeemable Preferred Stock, par value $0.01 per share (the
"Series A Preferred Stock"), of ITC/\DeltaCom, Inc. (the "Corporation"). This
Conversion Notice is provided pursuant to Section 4.1(b) of 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 (the "Certificate of
Designation"). Capitalized terms not defined herein have the meanings given to
such terms in the Certificate of Designation.

     The undersigned hereby irrevocably elects to convert [      ]shares of
                                                           ------
Series A Preferred Stock represented by the enclosed certificate or certificates
into shares of Common Stock at the Conversion Price per share of Common Stock
provided by the Certificate of Designation. The undersigned requests that
certificates representing such Common Stock be registered in the name or names
of the Persons set forth below for the number of shares of Common Stock issuable
upon conversion of the number of shares of Series A Preferred Stock set forth
beside such Person's name below:

Shares of Series A                      Taxpayer I.D. No./
  Preferred Stock    Name and Address   Social Security No.
------------------   ----------------   -------------------

     If the number of shares of Series A Preferred Stock that the undersigned is
converting is fewer than all of the shares of Series A Preferred Stock
represented by the enclosed certificate or certificates representing the Series
A Preferred Stock converted hereby, the undersigned requests that new
certificates representing the remaining shares of Series A Preferred Stock be
registered in the name of the undersigned at the address set forth below:

                                      A-1

<PAGE>

     Enclosed herewith are (1) written instruments of transfer, duly executed by
the undersigned or the undersigned's duly authorized legal representative, or in
blank, and (2) transfer tax stamps or funds thereof, in each case, that are
required pursuant to the Certificate of Designation.

                                            Name:
                                                  ------------------------------

                                            Signature:
                                                       -------------------------

                                            Address:
                                                     ---------------------------

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

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

                                            Telephone no.:
                                                           ---------------------

                                            Facsimile no.:
                                                           ---------------------

                                            Note: The above signature should
                                                  correspond exactly with the
                                                  name on the face of the
                                                  enclosed Series A Preferred
                                                  Stock certificates

                                      A-2<PAGE>

                                                                     Exhibit 4.3

                                                                  Execution Copy

                               ITC/\DELTACOM, INC.

                                       and

                          MELLON INVESTOR SERVICES LLC

                                       as

                                  WARRANT AGENT

                                   ----------

                                WARRANT AGREEMENT

                           Dated as of October 6, 2003

<PAGE>

                                TABLE OF CONTENTS

                                                                            Page
                                                                            ----

W I T N E S S E T H:...........................................................1

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

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

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

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

      2.3     Warrant Registrar................................................3

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

SECTION 3.    TERMS OF WARRANTS; EXERCISE OF WARRANTS..........................4

SECTION 4.    PAYMENT OF TAXES................................................10

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

SECTION 6.    OBTAINING STOCK EXCHANGE LISTINGS...............................11

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

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

SECTION 9.    WARRANT AGENT...................................................25

      9.1     Duties and Obligations; Limitations of Liability................25

      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

<PAGE>

     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............................39

SECTION 12.   SUPPLEMENTS AND AMENDMENTS......................................41

SECTION 13.   SUCCESSORS......................................................43

SECTION 14.   TERMINATION.....................................................43

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

SECTION 16.   WARRANT HOLDER NOT DEEMED A STOCKHOLDER.........................51

SECTION 17.   GOVERNING LAW...................................................52

SECTION 18.   BENEFITS OF THIS AGREEMENT......................................52

SECTION 19.   COUNTERPARTS....................................................52

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

                                       ii

<PAGE>

                                WARRANT AGREEMENT

          This Warrant Agreement, dated 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, pursuant to the Agreement and Plan of Merger, dated
as of July 2, 2003, as amended, among the Company, 8BDC1 Corp., BTI Telecom
Corp. and each Person set forth on the signature pages thereof under the heading
"WCAS Securityholders," the Company proposes to issue and deliver 3,000,000
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"); and

          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;

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

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.

<PAGE>

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
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

                                       2

<PAGE>

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.

     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

                                       3

<PAGE>

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.

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 6, 2010 (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
$8.50 per share of Common Stock, as adjusted from time to time in accordance
with Section 7 (the "Exercise

                                       4

<PAGE>

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 6, 2010 (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 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).

                                       5

<PAGE>

          (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, 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

                                       6

<PAGE>

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 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)

                                       7

<PAGE>

               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.

          (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.

                                       8

<PAGE>

          (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 the Issue Date or on the Series B Preferred Stock pursuant to the
     Series B Certificate of Designation as in effect on the Issue Date), (B)
     any other issuance of Series B Preferred Stock after the Issue Date
     pursuant to the Series B Certificate of Designation as in effect on the
     Issue 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,

                                       9

<PAGE>

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 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

                                       10

<PAGE>

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.

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.

                                       11

<PAGE>

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 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:

                                       12

<PAGE>

               (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
     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.

                                       13

<PAGE>

               (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 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.

                                       14

<PAGE>

               (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 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

                                       15

<PAGE>

     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. The Company shall give prompt written notice to the Required
     Initial Holders of the determination of the Board of Directors with 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

                                       16

<PAGE>

     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 A
     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 A 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 Merger Common Stock;

               (ii) 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 Issue Date or otherwise issuable after
     the Issue Date pursuant to the Series B Certificate of Designation as in
     effect on the Issue 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
     Issue Date;

               (iii) any shares of Common Stock, Options or Convertible
     Securities issuable as a dividend or distribution on the Series B Preferred
     Stock in accordance with

                                       17

<PAGE>

     the Series B Certificate of Designation as in effect on the Issue 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;

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

               (v) 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 Issue 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 Issue Date;

               (vi) 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 Issue 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;

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

               (viii) 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

                                       18

<PAGE>

     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 B 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;

               (ix) 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);

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

               (xi) 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 B Directors, if any, in each case whether or not
     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

                                       19

<PAGE>

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.

          (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

                                       20

<PAGE>

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.

          (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

                                       21

<PAGE>

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 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

                                       22

<PAGE>

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 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.

                                       23

<PAGE>

          (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 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

                                       24

<PAGE>

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 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:

                                       25

<PAGE>

          (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 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.

                                       26

<PAGE>

          (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, 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

                                       27

<PAGE>

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 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.

                                       28

<PAGE>

          (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 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

                                       29

<PAGE>

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, 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.

                                       30

<PAGE>

          (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 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

                                       31

<PAGE>

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 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

                                       32

<PAGE>

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 any Transaction Document,
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:

               (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

                                       33

<PAGE>

     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 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

                                       34

<PAGE>

          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 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

                                       35

<PAGE>

          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 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

                                       36

<PAGE>

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 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.

                                       37

<PAGE>

               (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
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.

                                       38

<PAGE>

     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, 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

                                       39

<PAGE>

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

          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.

                                       40

<PAGE>

          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.

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

                                       41

<PAGE>

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 any Warrants are outstanding and held by the Required
Initial Holders, prior to amending the Series A Warrant Agreement in such a
manner as to provide the Holders of the Series A 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 A Amendment"), which shall include the text of the
Proposed Series A Amendment, to the Required Initial Holders (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 A Warrants in the Proposed
Series A Amendment. If, within ten Business Days after their receipt 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 A Warrant Agreement to provide for such
rights unless, concurrently with, or immediately prior to, the effectiveness of
the Proposed Series A Amendment, the Company shall

                                       42

<PAGE>

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 A Amendment, and the Company shall then have the right to
amend the Series A Warrant Agreement as provided in the Proposed Series A
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 A Amendment affect the
applicability of this Section 12(b) with respect to any subsequent Proposed
Series A 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).

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.

                                       43

<PAGE>

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.

          "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.

          "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

                                       44

<PAGE>

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 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 Series A Warrants and the 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).

                                       45

<PAGE>

          "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).

          "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.

                                       46

<PAGE>

          "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.

          "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 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 any Holder of Warrants on the Issue Date.

          "Issue Date" means October 6, 2003.

          "Liens" means liens and charges other than liens and charges arising
under (i) any Transaction Document, (ii) any other agreement entered into
between the Company and any Holder of a Warrant from time to time or (iii) 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. and each Person set forth on the signature pages thereof
under the heading "WCAS Securityholders."

          "Merger Common Stock" means the Common Stock issued by the Company
pursuant to the Merger Agreement.

                                       47

<PAGE>

          "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.

          "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.

          "Proposed Series A 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.

                                       48

<PAGE>

          "Required Initial Holders" means, as of any date of determination,
WCAS Capital Partners III, L.P. and Welsh, Carson, Anderson & Stowe VIII, L.P.,
so long as such Initial Holders and their Affiliates 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).

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

          "Series A Warrants" means the warrants to purchase Common Stock issued
by the Company pursuant to the Warrant Agreement, dated as of October 29, 2002,
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 Issue Date shall increase the

                                       49

<PAGE>

number of warrants issuable pursuant thereto); provided that such warrants have
the same exercise expiration date and (subject to adjustments pursuant to
antidilution provisions of such Warrant Agreement) the same exercise price as
the warrants issued pursuant to such Warrant Agreement which are outstanding on
the Issue Date.

          "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 Directors" means the directors of the Company who are
appointed to the Board of Directors effective as of the Issue Date as Series B
Directors pursuant to the Series B Certificate of Designation or thereafter (i)
elected to the Board of Directors pursuant to the Series B Certificate of
Designation by the holders of the Series B Preferred Stock voting as a separate
class or (ii) appointed to the Board of Directors pursuant to the Series B
Certificate of Designation.

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

          "Transaction Documents" means (i) the Merger Agreement, (ii) this
Agreement as amended from time to time, (iii) 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 and (iv) the Registration Rights Agreement, dated as
of October 6, 2003, as amended from time to time, among the Company and the
securityholders identified therein.

                                       50

<PAGE>

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

                                       51

<PAGE>

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.

                                       52

<PAGE>

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement 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

                                       53

<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 6,
2010 (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 6, 2010, 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
$8.50 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 6, 2010, 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 6, 2010 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 6, 2003 (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 6, 2010; 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 states in

                                      A-5

<PAGE>

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:

<TABLE>
<CAPTION>
                                                                    Number of
                                                                     Warrants
                   Amount of decrease                             in this Global
                      in Number of      Amount of increase in   Warrant following      Signature of
                    warrants in this    Number of Warrants in   such decrease or    authorized officer
Date of Exchange     Global Warrant      this Global Warrant        increase         of Warrant Agent
------------------------------------------------------------------------------------------------------
<S>                <C>                  <C>                     <C>                 <C>

</TABLE>

                                      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 6, 2003, 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 6, 2003, 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-

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