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Table of Contents
Maine Regulatory Settlement
On July 6, 2010, the Maine Public Utilities Commission (the “MPUC”) provided its approvals for Maine, including of the Regulatory Settlement for
Maine (the “Maine Regulatory Settlement”). The Maine Regulatory Settlement provides for, among other things, the following:

We will comply with the MPUC’s February 1, 2008 Order issued in Docket Nos. 2007-67 and 2005-155, and all stipulations approved thereby (the
“ME 2008 Merger Order”), including provisions regarding broadband build-out, capital investment, the SQI program and other provisions of the
ME 2008 Merger Order, subject to certain modifications described in the Maine Regulatory Settlement.

We and the MPUC agreed to submit a joint consent order to the Bankruptcy Court which provides for the implementation of the SQI rebates for the
2008-2009 SQI year, starting with bills issued in March 2010.

The deadline for the initial 83% broadband build-out requirement was extended from April 1, 2010 to December 31, 2010. We believe that we have
fulfilled this broadband coverage commitment as of December 31, 2010, although we are in the process of confirming such compliance. An
additional interim requirement of 85% is established with a July 31, 2012 deadline, and the final requirement, with a March 31, 2013 deadline, will
be reduced from 90% to 87%. However, if we fail to meet any of these requirements, we shall be further required to achieve 90% by March 31, 2014.
We further agreed that by March 31, 2013, we would achieve 82% for lines in UNE Zone 3. If we meet the 87% requirement by March 31, 2013, we
will contribute $100,000 to the ConnectME Authority on July 1, 2013.
In meeting our broadband build-out requirements beyond 85%, we may resell the broadband service offerings of other non-satellite providers in order
to meet our build-out and/or service requirements, provided that the services meet or exceed all requirements of the ME 2008 Merger Order, the resold
services are purchased through and serviced by us, and the MPUC staff approves the provider(s).

The financial conditions in the ME 2008 Merger Order were replaced by the terms of the Maine Regulatory Settlement, which provided that such
financial conditions were satisfied or were rendered moot by the debt reductions resulting from the Plan.

Our New Board is required to consist of a supermajority of newly appointed independent directors and at least one member of the New Board will
reside in northern New England. We are in compliance with this obligation.
The New Board is required to appoint a “regulatory sub-committee” that will monitor compliance with the terms of the ME 2008 Merger Order, as
modified by the Maine Regulatory Settlement, and all other regulatory matters involving the States of Vermont, New Hampshire and Maine. We
appointed a regulatory committee on the Effective Date.
We agreed to seek to have a Chief Information Officer in place by June 30, 2010. We fulfilled this obligation in March of 2010.
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