ITC DELTACOM INC
EXHIBIT 10.17
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<DESCRIPTION>EXHIBIT 10.17
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2">EXHIBIT 10.17 </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">DESCRIPTION OF ITC^DELTACOM, INC. ANNUAL BONUS PLAN </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">ITC^DeltaCom, Inc. (the &#147;Company&#148;) maintains an annual bonus plan for the benefit of its corporate officers and certain other employees of the
Company and its subsidiaries. Bonuses are specified as a percentage of the employee&#146;s annual base salary. Bonus percentages generally are set by job classification level within the Company, except that bonus percentages for the most senior
executive officers of the Company are established by the Compensation Committee of the Board of Directors. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The Compensation Committee establishes annual target bonus awards based on the achievement of the financial and operating objectives set by the
Compensation Committee for the Company. Typically, 100% of annual bonuses payable to senior executives under the business plan are tied to the Company&#146;s achievement of revenue, EBITDA (cash flow) and capital budget targets. Bonuses for other
executives and employees are determined based on varying percentages of annual base salary, tied to individual and departmental performance. Company performance (measured against targets set for senior executives) plays a factor in determining all
bonus awards. The Compensation Committee has the discretion to modify the foregoing percentage for senior executive officers as it deems appropriate. </FONT></P>
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