Exhibit 10.2
Execution Version
FOURTH AMENDMENT AND SUPPLEMENT TO CREDIT AGREEMENT
This FOURTH AMENDMENT AND SUPPLEMENT TO CREDIT AGREEMENT (this “Amendment”),
dated as of December 1, 2011, by and among ZAYO GROUP, LLC, a Delaware limited
liability company (“Zayo”), ZAYO CAPITAL, INC., a Delaware corporation (“Zayo
Capital”; and together with Zayo, each, individually as a “Borrower” and,
collectively, as the “Borrowers”), the Guarantors (as defined below) signatory
hereto, the Lenders (as defined below) and SUNTRUST BANK, in its capacity as
administrative agent for the Lenders (the “Administrative Agent”).
W I T N E S S E T H:
WHEREAS, the Borrowers, the Persons party thereto from time to time as
Guarantors (the “Guarantors”), the financial institutions party thereto from
time to time (the “Lenders”), SunTrust Bank, as the Issuing Bank, SunTrust Bank,
as the Collateral Agent, and the Administrative Agent are parties to that
certain Credit Agreement, dated as of March 12, 2010 (as amended, restated,
supplemented or otherwise modified from time to time prior to the date hereof,
the “Credit Agreement”; capitalized terms used herein and not otherwise defined
shall have the meanings assigned to such terms in the Credit Agreement),
pursuant to which the Lenders have made certain financial accommodations
available to the Borrowers;
WHEREAS, the Borrowers have requested that the Lenders and the Administrative
Agent amend certain provisions of the Credit Agreement as set forth herein and,
subject to the terms and conditions hereof, the Lenders and the Administrative
Agent are willing to do so; and
WHEREAS, pursuant to Section 6.18 of the Credit Agreement, a new Domestic
Subsidiary (whether by acquisition, creation of designation) of the Borrowers is
required to join the Credit Agreement as a Guarantor and become a Borrower Party
and, upon the execution and delivery of this Amendment by such Domestic
Subsidiary, such Domestic Subsidiary shall become a Guarantor of the Obligations
and become a Borrower Party under the Credit Agreement with the same force and
effect as if originally named as a Guarantor therein;
NOW THEREFORE, in consideration of the premises, the terms and conditions
contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
Amendments to the Credit Agreement.
Section 1.1 of the Credit Agreement, “Definitions”, is hereby amended and
modified by deleting clause (v) of the definition of “EBITDA” in its entirety
and inserting the following in lieu thereof:
“(v) restructuring charges and severance costs in an aggregate amount not to
exceed $15,000,000 in the aggregate in any four fiscal quarter period and”

 

 

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Section 1.1 of the Credit Agreement, “Definitions”, is hereby further amended
and modified by deleting the definition of “Fixed Charge Coverage Ratio” in its
entirety and inserting the following in lieu thereof:
““Fixed Charge Coverage Ratio” shall mean, with respect to the Borrowers and
their Subsidiaries on a consolidated basis for any calendar quarter ended, for
the twelve-month period then ended, the ratio of (a) Annualized EBITDA for such
period then ended minus Capital Expenditures for the twelve month period then
ended (excluding, without duplication, Capital Expenditures for the twelve-month
period then ended (i) that are directly related to new sales to, or made at the
request of, Persons to whom any Borrower Party has agreed to provide either
goods or services (or both) pursuant to a written agreement providing for the
payment of aggregate compensation to a Borrower Party equal to or greater than
the amount of Capital Expenditures made in respect of such written agreement,
(ii) to the extent financed with Funded Debt for Borrowed Money (other than
Funded Debt incurred hereunder or under any other revolving credit facility),
(iii) made with the proceeds of a disposition permitted hereunder and (iv) made
with the proceeds of an equity issuance permitted hereunder), to (b) Interest
Expense for the twelve-month period then ended.”
Section 1.1 of the Credit Agreement, “Definitions”, is hereby further amended
and modified by deleting the definition of “PUC” in its entirety and inserting
the following in lieu thereof:
““PUC” shall mean any state regulatory agency or body that exercises
jurisdiction over the intrastate rates or services or the ownership,
construction or operation of any intrastate network facility or
telecommunications system or over Persons who own, construct or operate a
network facility or telecommunications system used to provide intrastate
services, in each case, by reason of the nature or type of the business subject
to regulation and not pursuant to laws and regulations of general applicability
to Person conducting business in such state.”
Section 8.4 of the Credit Agreement, “Restricted Payments and Purchases”, is
hereby amended and modified by deleting clause (c) thereof in its entirety and
inserting the following in lieu thereof:
“(c) any Borrower may make additional Restricted Payments and Restricted
Purchases in the following amounts after the Agreement Date, so long as both
before and after giving effect to such Restricted Payment or Restricted
Purchase, no Default has occurred and is continuing or would result from the
making of such Restricted Payment or Restricted Purchase: (i) if minimum
Availability is greater than or equal to $65,000,000 and the Leverage Ratio, on
a pro forma basis, is less than 4.00 to 1.00 but greater than or equal to 3.50
to 1.00 at the time of the proposed payment of the Restricted Payments or the
proposed Restricted Purchase, $20,000,000 less the aggregate amount of
Restricted Payments and Restricted Purchases made under this clause (c) after

 

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the Agreement Date and (ii) if minimum Availability is greater than or equal to
$32,500,000 and (A) if the Leverage Ratio, on a pro forma basis, is less than
3.50 to 1.00 but greater than or equal to 2.50 to 1.00 at the time of the
proposed payment of the Restricted Payments or the proposed Restricted Purchase,
$50,000,000 less the aggregate amount of Restricted Payments and Restricted
Purchases made under this clause (c) after the Agreement Date, (B) if the
Leverage Ratio, on a pro forma basis, is less than 2.50 to 1.00 but greater than
or equal to 1.50 to 1.00 at the time of the proposed payment of the Restricted
Payments or the proposed Restricted Purchase, $70,000,000 less the aggregate
amount of Restricted Payments and Restricted Purchases made under this clause
(c) after the Agreement Date, and (C) if the Leverage Ratio, on a pro forma
basis, is less than 1.50 to 1.00 at the time of the proposed payment of the
Restricted Payments or the proposed Restricted Purchase, $90,000,000 less the
aggregate amount of Restricted Payments and Restricted Purchases made under this
clause (c) after the Agreement Date,”
Joinder of New Guarantors.
In accordance with Section 6.18 of the Credit Agreement, each of 360networks
holdings (USA) inc., a Nevada corporation, 360networks (USA) Inc., a Nevada
corporation, 360networks LLC, a Delaware limited liability company, 360networks
Illinois LLC, a Delaware limited liability company, 360networks Iowa LLC, a
Delaware limited liability company, 360networks Kentucky LLC, a Delaware limited
liability company, 360networks Louisiana LLC, a Delaware limited liability
company, 360networks Michigan LLC, a Delaware limited liability company,
360networks Mississippi LLC, a Delaware limited liability company, 360networks
Tennessee LLC a Delaware limited liability company, and Northern Colorado
Telecommunications LLC (TA-CO), a Colorado limited liability company
(collectively, the “New Guarantors”), by its signature below, becomes a
“Guarantor” and a “Borrower Party” under the Credit Agreement with the same
force and effect as if originally named therein as a “Guarantor” and as a
“Borrower Party”, and each New Guarantor hereby agrees to all of the terms and
provisions of the Credit Agreement applicable to it as a “Guarantor” and as a
“Borrower Party” thereunder. In furtherance of the foregoing, the New
Guarantors, as security for the payment and performance in full of the
Obligations, do hereby guarantee, subject to the limitations set forth in
Section 3.1(g) of the Credit Agreement, to the Administrative Agent, for the
benefit of the Lender Group, the full and prompt payment of the Obligations,
including, without limitation, any interest thereon (including, without
limitation, interest, as provided in the Credit Agreement, accruing after the
filing of a petition initiating any Insolvency Proceedings, whether or not such
interest accrues or is recoverable against the Borrowers after the filing of
such petition for purposes of the Bankruptcy Code or is an allowed claim in such
proceeding), plus reasonable attorneys’ fees and expenses if the obligations
represented by the Credit Agreement are collected by law, through an
attorney-at-law, or under advice therefrom. Each reference to a “Guarantor” and
“Borrower Party” in the Credit Agreement shall be deemed to include the New
Guarantors. The Credit Agreement is incorporated herein by reference.

 

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Each New Guarantors represents and warrants to the Administrative Agent and the
other members of the Lender Group that this Amendment has been duly executed and
delivered by such New Guarantor and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except to the
extent that the enforceability thereof may be limited by applicable bankruptcy,
insolvency, reorganization, or similar laws affecting the enforcement of
creditors’ rights generally or by general principles of equity (regardless of
whether such enforcement is considered in a proceeding in equity or at law).
No Other Amendments. The execution, delivery and effectiveness of this Amendment
shall not, except as expressly provided above, operate as a waiver of any right,
power or remedy of the Administrative Agent, the Lenders or the Issuing Bank
under the Credit Agreement or any of the other Loan Documents, nor constitute a
waiver of any provision of the Credit Agreement or any of the other Loan
Documents. Except for the amendment set forth above, the text of the Credit
Agreement and all other Loan Documents shall remain unchanged and in full force
and effect and each Borrower hereby ratifies and confirms its obligations
thereunder. This Amendment shall not constitute a modification of the Credit
Agreement or a course of dealing with the Administrative Agent, the Lenders or
the Issuing Bank at variance with the Credit Agreement such as to require
further notice by the Administrative Agent, the Lenders or the Issuing Bank to
require strict compliance with the terms of the Credit Agreement and the other
Loan Documents in the future. Nothing in this Amendment is intended, or shall be
construed, to constitute a novation or an accord and satisfaction of any of the
Obligations or to modify, affect or impair the perfection or continuity of the
Administrative Agent’s or the Lenders’ security interests in, security titles
to, or other Liens on, any Collateral for the Obligations.
Conditions to Effectiveness. Section 1 of this Amendment shall become effective
as of the first date (the “Effective Date”) on which all of the following
conditions have been satisfied:
the Administrative Agent, on behalf of the Issuing bank and the Lenders, shall
have received counterparts of this Amendment duly executed by the Borrowers, the
Guarantors and the Majority Lenders;
all fees and expenses required to be paid hereunder or pursuant to the Credit
Agreement and invoiced at least two (2) Business Days prior to the Effective
Date shall have been paid in full in cash or will be paid on the Effective Date;
and
the 360 Transactions shall have been consummated; provided, that,
notwithstanding the foregoing, the VOIP Divestiture may be consummated on or
after the Effective Date.

 

4

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Representations and Warranties. Each Borrower Party hereby represents and
warrants that all representations and warranties of the Borrower Parties made in
the Credit Agreement and the other Loan Documents are true and correct in all
material respects (unless any such representation or warranty is qualified as to
materiality, in which case such representation and warranty shall be true and
correct in all respects) as of the date hereof (in each case, except to the
extent that such representation or warranty specifically refers to an earlier
date, in which case it shall be so true and correct as of such earlier date). As
of the date hereof and as of the Effective Date, each Borrower Party further
represents and warrants as follows:
such Borrower Party is a corporation or limited liability company duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation;
the execution, delivery and performance by such Borrower Party of this Amendment
and the Loan Documents are within such Borrower Party’s legal powers, have been
duly authorized by all necessary company action and do not contravene (i) such
Borrower Party’s organizational documents, or (ii) law or contractual
restrictions binding on or affecting such Borrower Party;
no authorization, approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body, is required for the due
execution, delivery and performance by such Borrower Party of this Amendment or
any of the Loan Documents to which such Borrower Party is or will be a party;
this Amendment and each of the other Loan Documents to which such Borrower Party
is a party constitute legal, valid and binding obligations of such Borrower
Party, enforceable against such Borrower Party in accordance with their
respective terms; and
no Default or Event of Default exists.
Acknowledgment of Security Interests. Each Borrower Party hereby acknowledges
that, as of the date hereof and as of the Effective Date, the security interests
and liens granted to the Administrative Agent and the Lenders under the Credit
Agreement and the other Loan Documents are in full force and effect and are
enforceable in accordance with the terms of the Credit Agreement and the other
Loan Documents.
Reaffirmation of Guaranty. Each Guarantor (other than the New Guarantors) hereby
specifically (a) acknowledges and reaffirms its obligations owing to the Lender
Group under the Credit Agreement and any other Loan Documents to which each such
Guarantor is a party and (b) agrees that each of the Loan Documents to which it
is a party is and shall remain in full force and effect.
Costs, Expenses and Taxes. Each Borrower agrees, jointly and severally, to pay
on demand all out-of-pocket expenses of the Administrative Agent in connection
with the preparation, negotiation, execution and delivery of this Amendment,
including, but not limited to, the reasonable fees and disbursements of counsel
for the Administrative Agent.
Governing Law. This Amendment shall be construed in accordance with and governed
by the laws of the State of New York.

 

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Loan Document. This Amendment shall be deemed to be a Loan Document for all
purposes.
Counterparts. This Amendment may be executed in any number of counterparts, each
of which shall be deemed to be an original, but all such separate counterparts
shall together constitute but one and the same instrument. In proving this
Amendment in any judicial proceeding, it shall not be necessary to produce or
account for more than one such counterpart signed by the party against whom
enforcement is sought. Any signatures delivered by a party by facsimile or other
electronic transmission shall be deemed an original signature hereto.
Release. In consideration for the accommodations provided pursuant to this
Amendment, and acknowledging that the Administrative Agent and Lenders will be
specifically relying on the following provisions as a material inducement in
entering into this Amendment, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, each Borrower Party
hereby releases, remises and forever discharges the Administrative Agent and the
Lenders and their respective agents, servants, employees, directors, officers,
attorneys, accountants, consultants, affiliates, representatives, receivers,
trustees, subsidiaries, predecessors, successors and assigns (collectively, the
“Released Parties”) from any and all claims, damages, losses, demands,
liabilities, obligations, actions and causes of action whatsoever (whether
arising in contract or in tort, and whether at law or in equity), whether known
or unknown, matured or contingent, liquidated or unliquidated, in any way
arising from, in connection with, or in any way concerning or relating to the
Credit Agreement, the other Loan Documents, and/or any dealings with any of the
Released Parties in connection with the transactions contemplated by such
documents or this Amendment prior to date hereof. This release shall be and
remain in full force and effect notwithstanding the discovery by each Borrower
Party after the date hereof (a) of any new or additional claim against any
Released Party, (b) of any new or additional facts in any way relating to the
subject matter of this release, (c) that any fact relied upon by it was
incorrect or (d) that any representation made by any Released Party was untrue
or that any Released Party concealed any fact, circumstance or claim relevant to
such Borrower’s execution of this release; provided, however, this release shall
not extend to any claims arising after the execution of this Amendment.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

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

                  BORROWERS:   ZAYO GROUP, LLC
ZAYO CAPITAL, INC.    
 
                    By:   /s/ Ken desGarennes                  
 
      Name:   Ken desGarennes    
 
      Title:   Chief Financial Officer    

 

 

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          GUARANTORS:  ZAYO COLOCATION, INC.
AMERICAN FIBER SYSTEMS, INC.
AMERICAN FIBER SYSTEMS HOLDING CORP.
FIBERNET TELECOM, INC.
LOCAL FIBER, LLC
360NETWORKS HOLDINGS (USA) INC.
360NETWORKS (USA) INC.
360NETWORKS LLC
360NETWORKS ILLINOIS LLC
360NETWORKS IOWA LLC
360NETWORKS KENTUCKY LLC
360NETWORKS LOUISIANA LLC
360NETWORKS MICHIGAN LLC
360NETWORKS MISSISSIPPI LLC
360NETWORKS TENNESSEE LLC

NORTHERN COLORADO TELECOMMUNICATIONS LLC (TA-CO)

      By:   /s/ Ken desGarennes         Name:   Ken desGarennes        Title:  
Chief Financial Officer     

 

 

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          AGENT AND LENDERS:  SUNTRUST BANK,
as the Administrative Agent
and a Lender
      By:   /s/ David Fournier         Name:   David Fournier        Title:  
Vice President     

 

 

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            ROYAL BANK OF CANADA,
as a Lender
      By:   /s/ Mark S. Gronich         Name:   Mark S. Gronich        Title:  
Authorized Signatory     

 

 

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            BARCLAYS BANK PLC,
as a Lender
      By:   /s/ Kevin Cullen         Name:   Kevin Cullen        Title:  
Director     

 

 

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Schedule 1.1(a)
Equity Group
Columbia Capital Equity Partners IV (QP), L.P.
Columbia Capital Equity Partners IV (QPCO), L.P.
Columbia Capital Equity Investors IV, L.P.
Columbia Capital Equity Partners III (QP), L.P.
Columbia Capital Equity Partners III (Cayman), L.P.
Columbia Capital Equity Partners III (AI), L.P.
Columbia Capital Investors III, L.L.C.
Columbia Capital Employee Investors III, L.L.C.
M/C Venture Partners VI, L.P.
M/C Venture Investors, L.L.C
M/C Venture Partners V, L.P.
Chestnut Venture Partners, L.P.
Oak Investment Partners XII, Limited Partnership
Battery Ventures VII, L.P.
Battery Investment Partners VII, LLC
Battery Ventures VIII, L.P.
Centennial Ventures VII, L.P.
Centennial Entrepreneurs Fund VII, L.P.
Bear Equity, LLC
Bear Investments, LLLP
ESU Investments, LLC
Tablerock Investments, LLC
VP Holdings, LLC
Charlesbank Equity Fund VI, Limited Partnership
CB Offshore Equity Fund VI
Charlesbank Equity Coinvestment Fund VI, LP
Charlesbank Equity Coinvestment Partners, LP
Universal Telecommunications, Inc.
Yawlbreak& Co FTBO GTB Capital Partners LP
Morgan Stanley Private Markets Fund IV LP
Stormbay& Co FTBO VijverpoortHuizen C.V.
Nextone, LLC
Independent Director, Rick Connor
Mango Holdings, LLC

 

 

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Schedule 1.1(b)
Liens

                                      Jurisdiction of   Search                  
  Incorporation/   Report As of       File     No.   Obligor   Formation   Date
  Filing Office   Number(s)   Filing Date
1.
  American Fiber Systems Holding Corp.   Delaware   10/21/2011   Delaware
Secretary of State     04111401     11/22/2010
2.
  American Fiber Systems, Inc.   Delaware   10/21/2011   Delaware Secretary of
State     04111435     11/22/2010
3.
  Zayo Capital, Inc.   Delaware   10/21/2011   Delaware Secretary of State    
00854616     03/12/2010
4.
  Zayo Colocation, Inc.   Delaware   10/21/2011   Delaware Secretary of State  
  00855324     03/12/2010
5.
  Zayo Group, LLC   Delaware   10/21/2011   Delaware Secretary of State     1.
81796059
2. 82964219
3. 82964417
4. 00854384
5. 134952911     1. 05/16/2008
(amended
08/20/2008)
2. 09/02/2008
3. 09/02/2008
4. 03/12/2010
5. 09/12/2011
6.
  Zayo Group Holdings, Inc.   Delaware   10/21/2011   Delaware Secretary of
State     1. 00855464
2. 03112087     1. 03/12/2010
2. 09/07/2010
7.
  FiberNet Telecom, Inc.   Delaware   10/21/2011   Delaware Secretary of State  
  00855399     03/12/2010
8.
  Local Fiber, LLC   New York   11/10/2011   New York Secretary of State    
201003120130225     03/12/2010

 

      1  
Termination statement filed 11/30/11.

 

 

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Schedule 4.1(f)
Surviving 360networks Funded Debt
Capital leases in the amount of approximately $124,803.63. See Schedule 8.1
Irrevocable Letter of Credit in the undrawn amount of $257,500.00. See
Schedule 8.1

 

 

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Schedule 5.1(c)-1
Subsidiaries

                      Jurisdiction of       Other         Incorporation  
Qualified Business   Business     Name   or Formation   States   Names   Equity
Holders
Zayo Capital, Inc.
  Delaware   Delaware   None   Zayo Group, LLC
Zayo Colocation, Inc.
  Delaware   Delaware, California, Illinois, New Jersey, New York, Pennsylvania
  Formerly Fibernet Telecom Group, Inc.   Zayo Group, LLC
FiberNet Telecom, Inc.
  Delaware   Delaware, California, Illinois, New Jersey, New York   None   Zayo
Colocation, Inc.
Local Fiber, LLC
  New York   New York, Illinois, New Jersey   None   FiberNet Telecom, Inc.
American Fiber Systems Holding Corp.
  Delaware   Delaware, New York   None   Zayo Group, LLC
American Fiber Systems, Inc.
  Delaware   Delaware, Connecticut, Georgia, Idaho, Kansas, Minnesota, Missouri,
Nevada, New York, Ohio, Tennessee, Utah   None   American Fiber Systems Holding
Corp.
360networks holdings (USA) inc.
  Nevada   Nevada   None   Zayo Group, LLC
360networks (USA), inc.
  Nevada   Alaska, Arizona, Arkansas, California, Colorado, Connecticut,
Delaware, D.C., Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa,
Kentucky, Louisiana, Maine, Michigan, Minnesota, Mississippi, Missouri, Montana,
Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North
Carolina, North Dakota, Oklahoma, Oregon, Pennsylvania, Rhode Island, South
Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West
Virginia, Wisconsin, Wyoming   None   360networks holdings (USA), Inc.

 

 

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                      Jurisdiction of       Other         Incorporation  
Qualified Business   Business     Name   or Formation   States   Names   Equity
Holders
360networks LLC
  Delaware   Delaware, Illinois   None   360networks (USA) inc.
360networks Illinois LLC
  Delaware   Delaware, Illinois   None   360networks LLC
360networks Iowa LLC
  Delaware   Delaware, Iowa   None   360networks LLC
360networks Kentucky LLC
  Delaware   Delaware, Kentucky   None   360networks LLC
360networks Louisiana LLC
  Delaware   Delaware, Louisiana   None   360networks LLC
360networks Michigan LLC
  Delaware   Delaware   None   360networks LLC
360networks Mississippi LLC
  Delaware   Delaware, Mississippi   None   360networks LLC
360networks Tennessee LLC
  Delaware   Delaware, Tennessee   None   360networks LLC
Northern Colorado Telecommunications, LLC
  Colorado   Colorado   None   360networks (USA) inc.
360networks Vancouver Ltd.
  British Columbia   British Columbia   None   360networks holdings (USA) inc.

 

 

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Schedule 5.1(c)-2
Partnerships/Joint Ventures
Investments in the Equity Interests of CoBank, ACB to the extent permitted by
Section 8.5(i) of the Credit Agreement.

 

 

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5.1(d)
Outstanding Capital Stock Ownership

                          Amount Issued   Authorized     Issuer   Owner(s)   and
Outstanding   Equity   Restrictions
Zayo Group, LLC
  Zayo Group Holdings, Inc.   1,000 membership
interest units   1,000 membership
interest units   None
Zayo Capital, Inc.
  Zayo Group, LLC   100 shares of common stock   100 shares of common stock  
None
Zayo Colocation, Inc.
  Zayo Group, LLC   1,000 shares of common stock   1,000 shares of common stock
  None
FiberNet Telecom, Inc.
  Zayo Colocation, Inc.   1,000 shares of common stock   1,000 shares common
stock   None
Local Fiber, LLC
  FiberNet Telecom, Inc.   1,000 membership
interest units   1,000 membership
interest units   None
American Fiber Systems Holding Corp.
  Zayo Group, LLC   1,000 shares of common stock   1,000 shares of common stock
  None
American Fiber Systems, Inc.
  American Fiber Systems Holding Corp.   100 shares of common stock   100 shares
of common stock   None
360networks holdings (USA) inc.
  Zayo Group, LLC   6,170 shares of common stock   25,000 shares of common stock
228,000 shares of preferred stock   None
360networks (USA) inc.
  360networks holdings (USA) inc.   203 shares of common stock   25,000 shares
of common stock   None
360networks LLC
  360networks (USA) inc.   100 units   100 units   None

 

 

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                          Amount Issued   Authorized     Issuer   Owner(s)   and
Outstanding   Equity   Restrictions
360networks Illinois LLC
  360networks LLC   100 units   100 units   None
360networks Iowa LLC
  360networks LLC   100 units   100 units   None
360networks Kentucky LLC
  360networks LLC   100 units   100 units   None
360networks Louisiana LLC
  360networks LLC   100 units   100 units   None
360networks Michigan LLC
  360networks LLC   100 units   100 units   None
360networks Mississippi LLC
  360networks LLC   100 units   100 units   None
360networks Tennessee LLC
  360networks LLC   100 units   100 units   None
Northern Colorado Telecommunications, LLC
  360networks (USA) inc.   N/A   N/A   None
360networks Vancouver Ltd.
  360networks holdings (USA) inc.   100 shares of A voting non-participating
common stock

100 shares of B non-voting participating common stock   Unlimited number of
Class A voting non-participating shares of common stock

Unlimited number of Class B non-voting participating shares of common stock  
Holders of Class B shares are not entitled to vote or attend shareholders
meetings.

 

 

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Schedule 5.1(i)
Labor Matters
None.

 

 

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Schedule 5.1(j)
Taxes
None.

 

 

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Schedule 5.1(m)
Investments/Guarantees as of the Agreement Date
The CoBank, ACB investment listed on Schedule 5.1(c)-2.
Investment in US Carrier Telecom, LLC listed on Schedule 8.5

 

 

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Schedule 5.1(n)
Litigation
None

 

 

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Schedule 5.1(o)
ERISA
Title IV Plans

None
Multiemployer Plans

ADP TotalSource Retirement Savings Plan
Welfare Plans

ADP TotalSource Inc. Health and Welfare Plan
Retiree Welfare Plans

None

 

 

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Schedule 5.1(p)
Intellectual Property; Licenses and Certifications
U.S. Trademarks:

                              Application Serial   Registration Number/
Registered Owner   Trademark Description   Number/Filing Date   Registration
Date
360Networks Corporation *
  THE BACKBONE TO COMMUNICATIONS   78966155
September 1, 2006   3490666
August 19, 2008
360Networks Corporation *
  THE BACKBONE TO COMMUNICATIONS   78966157
September 1, 2006   3464595
July 8, 2008
360Networks Corporation *
  360NETWORKS   76171118
November 26, 2000   2821982
March 16, 2004
360Networks Corporation *
  360       76171119
November 26, 2000   2950775
May 17, 2005
360Networks Corporation *
  360NETWORKS   76122960
September 6, 2000   2911912
December 21, 2004
Zayo Group, LLC
  ZAYO FIBER SOLUTIONS   85308155
April 29, 2011   Application Still
Pending
Zayo Group, LLC
  ZAYO ENTERPRISE NETWORKS   85308157
April 29, 2011   Application Still
Pending
Zayo Group, LLC
  ZAYO BANDWIDTH   77245166
August 2, 2007   3500859
September 16, 2008
Zayo Group, LLC
  ZAYO   77244680
August 1, 2007   3500857
September 16, 2008
Zayo Group, LLC
  ZCOLO   77825058
September 11, 2009   3971264
May 31, 2011
Zayo Bandwidth Tennessee, LLC
  MEMPHIS NETWORX & Design   75873249
December 17, 1999   2572278
May 21, 2002
Zayo Bandwidth Tennessee, LLC
  MEMPHIS NETWORX   75873248
December 17, 1999   2545349
March 5, 2002

 

 

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

 

                              Application Serial   Registration Number/
Registered Owner   Trademark Description   Number/Filing Date   Registration
Date
Zayo Colocation, Inc.
  IMAGE [c25618c2561801.gif]   78693888
August 16, 2005   3395986
March 11, 2008
Zayo Colocation, Inc.
  IMAGE [c25618c2561802.gif]   77044317
November 15, 2006   3361370
January 1, 2008
Zayo Colocation, Inc.
  IMAGE [c25618c2561803.gif]   77037993
November 6, 2006   3350844
December 11, 2007
Zayo Colocation, Inc.
  IMAGE [c25618c2561804.gif]   78750871
November 9, 2005   3198383
January 16, 2007

Canadian Trademarks:

                              Application   Registration Number/ Registered
Owner   Trademark Description   Number/Filing Date   Registration Date
360Networks Corporation *
  360       1060809
May 26, 2000   TMA583,538
June 11, 2003
360Networks Corporation *
  360NETWORKS   1060810
May 26, 2000   TMA583,519
June 11, 2003
360Networks Corporation *
  360NETWORKS   1049887
March 8, 2000   TMA576,857
March 4, 2003

      *  
360networks Corporation is transferring ownership of these trademarks to
360networks (USA) inc. in conjunction with the terms of the Stock Purchase
Agreement.

U.S. Patents:

None issued or pending.
Foreign Patents:

None issued or pending.
US Copyright Registrations:

None issued or pending.
Foreign Copyright Registrations:

None issued or pending.
License Agreements:

None.

 

 

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

 

Schedule 5.1(u)
Insurance

                                  Expiration               Carrier   Policy
Number   Date   Type   Amount   Deductibles  
St. Paul Travelers
  H-630-512N520-IND-09   8/1/12   Deluxe Property   $4,727,999 building,   $
5,000  
 
                       
 
              $11,091,164 blanket        
 
              business personal        
 
              property,        
 
                       
 
              $125,713,856 EDP        
 
                       
St. Paul Travelers
  H-630-512N520-IND-09   8/1/12   General Liability   $1,000,000 each claim   $
0  
 
                       
 
              $2,000,000 general        
 
              aggregate        
 
               
 
              $2,000,000        
 
              products/completed        
 
              operations aggregate        
 
               
 
              $1,000,000 personal        
 
              & advertising injury        
 
               
 
              $300,000 premises        
 
              damage        
 
               
 
              $10,000 medical        
 
              expenses        
 
               
 
          Employee Benefits   $3,000,000 aggregate   $ 1,000  
 
          Liability   limit        
 
               
 
              $1,000,000 each claim        
 
               
St. Paul Travelers
  TE08302421   8/1/12   Errors & Omissions   $5,000,000 each claim   $ 50,000  
 
                       
 
              $5,000,000 aggregate        
 
              annual limit        
St. Paul Travelers
  HSM-CUP-5121N520-TIL-09   8/1/12   Umbrella Excess Liability   $10,000,000
each claim   $ 10,000  
 
               
 
              $10,000,000 annual        
 
              aggregate        
St. Paul Travelers
  BA-5121N520-TCT-09   8/1/12   Automobile Liability   $1,000,000 per        
 
              accident        
 
                       
 
              $10,000 medical        
 
              payments per person        
 
                       
 
          Automobile Physical   $15,000 limit   $ 1,000  
 
          Damage            

 

 

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

 

Schedule 5.1(w)-1
Leased Real Property (Material Collocation and Interconnection Data Centers)

                          Lessor   Lessee   Property Address   City   State  
Zip
60 Hudson Owner, LLC
  Zayo Colocation, Inc.   60 Hudson Suite 0106 MMR, 1903, 1211   New York   NY  
  10013  
Market Halsey Urban Renewal, LLC
  Zayo Colocation, Inc.   165 Halsey Street   Newark   NJ     07102  
111 Chelsea Commerce LP
  Zayo Colocation, Inc.   111 8th Avenue   New York   NY     10011  
Digital Printers Square
  Zayo Colocation, Inc.   600 S. Federal Street   Chicago   IL     60605  
707 Wilshire Fee, LLC
  Zayo Colocation, Inc.   707 Wilshire Blvd.   Los Angeles   CA     90064  
Broadview Networks, Inc.
  Zayo Bandwidth
Northeast, LLC   401 N Broad St.   Philadelphia   PA     19108  
XO Communications, Inc.
  Zayo Bandwidth
Northeast, LLC   2401 Locust St., Ste. 405   Philadelphia   PA     19103  
REA Associates LLC
  Zayo Bandwidth, LLC   900 Second St., NE Railway Express Building   Washington
  DC     20002  
Matrix Realty Group, Inc.
  Zayo Group, LLC   1525 Rockwell Ave. 4th Fl., Bldg 2   Cleveland   OH    
44114  
Mahrdt Properties, Inc.
  Zayo Bandwidth, LLC   701 West Henry Street, Ste. 201   Indianapolis   IN    
46225  
Townview 56th Street, LLC
  Zayo Bandwidth
Central, LLC   334 Gest Street, Ste. 100   Cincinnati   OH     45202  
Alleghany Center Associates
  Zayo Bandwidth
Central, LLC   100 South Commons, Ste
138   Pittsburgh   PA     15212  
Telx
  Zayo Colocation, Inc.   60 Hudson   New York   NY     10013  
Switch Communications
  Zayo Group, LLC   2475 Arden St. 7135

S. Decature Blvd   Las Vegas   NV     89118  

 

 

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

 

Schedule 5.1(w)-2
Owned Real Property
None.

 

 

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

 

Schedule 5.1(x)
Environmental Matters
None.

 

 

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

 

Schedule 6.13
Bank and Investment Accounts

                  Name in which   Account     Depository Institution   account
is held   Number   Purpose
Wells Fargo Bank NA
  Zayo Group, LLC   2000031004646   Operating
1700 Lincoln St., 8th Floor
Denver, CO 80203
           
Wells Fargo Bank NA
  Zayo Bandwidth, LLC   2000031004688   Operating
1700 Lincoln St., 8th Floor
Denver, CO 80203
           
Wells Fargo Bank NA
  Zayo Bandwidth BTOP   2000038468861   Operating
1700 Lincoln St., 8th Floor
Denver, CO 80203
           
Wells Fargo Bank NA
  Zayo Colocation, Inc.   2000038468829   Operating
1700 Lincoln St., 8th Floor
Denver, CO 80203
           
Wells Fargo Bank NA
  Zayo Fiber Solutions   2000038469747   Operating
1700 Lincoln St., 8th Floor
Denver, CO 80203
           

 

 

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

 

Schedule 6.19
Required PUC Consents

1.  
Arizona Corporation Commission

2.  
Consents, orders, waivers, and approvals of, and notices or other filings with,
the applicable PUC required in connection with the transfer of immaterial VOIP
Assets to Holdings or any of its Subsidiaries after the Agreement Date.

 

 

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

 

Schedule 8.1
Outstanding Indebtedness as of the Agreement Date

1.  
Fiber Lease Agreement, dated as of November 3, 2000, by and between Zayo
Bandwidth Northeast, LLC (aka PPL Telcom, LLC successor in interest to Cambrian
Communications, LLC) and AboveNet, Inc., a Delaware corporation, as amended by
Amendment #1 to Fiber Lease Agreement, dated December 17, 2001. As of
October 31, 2011, the amount outstanding was approximately $8,329,842.94.

2.  
Sub Capacity Use and Service Agreement between First Energy Telecom Services,
successor-in-interest to GPU Telcom and Zayo Bandwidth Central, LLC
successor-in-interest to AFN Fiber, LLC. As of October 31, 2011 the amount
outstanding was approximately $1,109,066.06.

3.  
Master Facilities Agreement between Fiber Technology Network, LLC and Zayo
Bandwidth Central, LLC. As of October 31, 2011 the amount outstanding was
approximately $323,962.38.

4.  
Master Lease Service Agreement between Enterprise Fleet Management and Zayo
Bandwidth LLC. As of October 31, 2011 the amount outstanding was approximately
$257,827.91.

5.  
Capital Lease Agreements between various vendors and Zayo Bandwidth LLC. As of
October 31, 2011 the amount outstanding was $7,377.00.

6.  
Agreement for the License of Fiber Optic Facilities and Services between
Minnesota Power and Light Company and Zayo Bandwidth, LLC. As of October 31,
2011 the amount outstanding was $697,742.83.

7.  
Letter of Credit 74004-01-2007-08-23 for Zayo Bandwidth Central, LLC issued by
Centra Bank, Inc. in favor of Embarq Corp., secured by CD#10284850 in the amount
of $2,988.42 on deposit with Centra Bank, Inc.

8.  
Letter of Credit 74004-03-2007-09-05 for Zayo Bandwidth Central, LLC issued by
Centra Bank, Inc. in favor of Embarq Corp., secured by CD# 10285369 in the
amount of $2859.03 on deposit with Centra Bank, Inc.

9.  
Letter of Credit 57568-08-2007-07-03 for Zayo Bandwidth Central, LLC issued by
Centra Bank, Inc. in favor of Virginia Electric, secured by CD# 10284745 in the
amount of $12,202.83 on deposit with Centra Bank, Inc.

10.  
Letter of Credit SFX 5051, 5052, 5064, 5065, 5066, 7648 for Zayo Fiber
Solutions, LLC issued by Mutual Savings Credit Union in favor of the cities of
Chandler, Glendale, Tempe, Mesa, Scottsdale and Phoenix, respectively, in the
aggregate amount of $538,600.17

11.  
Master Lease Service Agreement between Enterprise Fleet Management and Zayo
Fiber Solutions, LLC. As of October 31, 2011 the amount outstanding was
approximately $246,882.11.

12.  
Purchaser Holdback agreement dated as of October 12, 2006 by and between
American Fiber Systems, Inc. and IDACORP, Inc., a Idaho Corporation. As of
October 31, 2011 the amount outstanding was approximately $2,750,965.81

 

 

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

 

13.  
Subordinated Promissory Note dated as of October 1, 2010, by and between Zayo
Group, LLC and Robert E. Ingalls, Jr. As of October 31, 2011, the amount
outstanding was approximately $4,500,000.

14.  
Master Lease Service Agreement between Enterprise Fleet Management and
360networks(USA). As of November 30, 2011 the amount outstanding is
approximately $124,803.63.

15.  
Irrevocable Letter of Credit for 360networks (USA) inc. issued by Wells Fargo
Bank in favor of Fidelity Deposit Company of Maryland secured by bond
#8755048942 in the amount of $257,500.00 on deposit with Wells Fargo Bank.

 

 

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

 

Schedule 8.5
Existing Investments
Zayo Group, LLC currently has 55% ownership in the class A units and 34%
ownership in the class B units of US Carrier Telecom, LLC. As of October 31,
2011, the total value of the investment was approximately $15,075,555.78.

 

 

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

 

Schedule 8.6
Affiliate Transactions
None.