Document:

Exhibit 10.1

  

   

  

  
    EXECUTION VERSION

    

    

    INCREMENTAL AND FIFTH AMENDMENT TO CREDIT AGREEMENT

    

    

    This INCREMENTAL AND FIFTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of August 28, 2018, among Internap Corporation, a Delaware corporation (the “Borrower”),
        each of the Lenders (as defined below) party hereto and Jefferies Finance LLC, as Administrative Agent (in such capacity, the “Administrative Agent”),
        and is acknowledged and consented to by each Guarantor.

     

      

    R E C I T A L S:

    

    

    A.          The Borrower, the lenders from
        time to time party thereto (the “Lenders”) and the Administrative Agent are parties to the Credit Agreement dated as of April 6, 2017 (as amended by
        that certain First Amendment dated as of June 28, 2017, that certain Second Amendment dated as of February 6, 2018, that certain Incremental and Third Amendment dated as of February 28, 2018 and that certain Fourth Amendment dated as of April 9,
        2018 (the “Existing Credit Agreement”), and as further amended, restated, amended and restated, extended, supplemented or otherwise modified from time
        to time (including by this Amendment), the “Credit Agreement”).

     

      

    B.          The Borrower has requested to
        increase the aggregate Revolving Commitments under the Existing Credit Agreement (the “Existing Revolving Commitments”) by an aggregate principal amount
        equal to $10,000,000 and to effect certain other modifications thereto set forth herein, and the Administrative Agent and the Lenders party hereto consent to all such amendments and this Amendment.

     

      

    C.           Accordingly, in consideration of
        the premises made hereunder, and for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows:

     

      

    Section 1.          Definitions and Interpretation.

     

      

    1.1          Definitions.  Unless otherwise defined in this Amendment, capitalized terms used herein shall have the meanings given to them in the Credit Agreement.

     

      

    1.2          Interpretation.  This Amendment shall be construed and interpreted in accordance with the rules of construction set forth in Sections 1.02 through 1.06 of the Credit Agreement.

     

      

    Section 2.          Incremental Revolving Commitments.

     

      

    2.1          General.  Subject to the satisfaction of each of the conditions set forth in Section 3 hereof, upon the occurrence of the Fifth
        Amendment Effective Date (as defined herein):

     

      

    (a)       the Lenders
        party hereto (the “Fifth Amendment Incremental Lenders”) hereby agree to increase their respective Existing Revolving Commitment, on a pro rata basis, in an aggregate principal amount for each such Fifth Amendment Incremental Lender as set forth opposite its name in the column titled “Amount of Fifth Amendment Incremental Revolving Commitments” in
        Schedule I hereto (the “Fifth Amendment Incremental Revolving
            Commitments”) on the terms of, and in accordance with, this Amendment, the Credit Agreement and the other Loan Documents;

     

      

    (b)      the aggregate Revolving Commitments
        (as increased by the Fifth Amendment Incremental Revolving Commitments) shall be $35,000,000;

     

      

    
      1

      
        

    

    (c)      the terms and
        provisions of the Revolving Commitments (as increased by the Fifth Amendment Incremental Revolving Commitments) and the Revolving Loans and other Credit Extensions made pursuant thereto (if any) under the Credit Agreement shall be identical to the
        terms and provisions of the Existing Revolving Commitments and the Revolving Loans and other Credit Extensions made pursuant thereto (if any), and any other related terms will have correlative meanings mutatis mutandis with the terms in the Credit Agreement;

     

      

    (d)     without limiting
        the generality of the foregoing and except as may otherwise be set forth in this Amendment, the Fifth Amendment Incremental Revolving Commitments shall: (i) constitute Obligations, rank pari passu with all other Obligations and have all of the
        benefits thereof, (ii) together with the Existing Revolving Commitments, constitute the “Revolving Commitments” under the Credit Agreement, as set forth on Schedule
            I hereto, and shall have all of the terms, rights, remedies, privileges and protections applicable thereto under the Credit Agreement and each of the other Loan Documents and (iii) be secured by the Liens granted to the Collateral
        Agent for the benefit of the Secured Parties under the Security Agreement and each other Security Document;

     

      

    (e)      each reference to
        a “Revolving Loan” or “Loan”, or to “Revolving Loans” or “Loans”, in the Credit Agreement shall be deemed to include any Revolving Loans made pursuant to the Fifth Amendment Incremental Revolving Commitments and each reference to a “Revolving
        Lender” or “Lender”, or to “Revolving Lenders” or “Lenders”, in the Credit Agreement shall also include the Fifth Amendment Incremental Lenders;

     

      

    (f)      in accordance
        with Section 2.19(e) of the Credit Agreement, (i) each Revolving Lender immediately before the occurrence of the Fifth Amendment Effective Date will automatically and without further act be deemed to have assigned to each Fifth Amendment
        Incremental Lender, and each such Fifth Amendment Incremental Lender will automatically and without further act be deemed to have assumed, a portion of such Revolving Lender’s participations hereunder in outstanding Letters of Credit and Swingline
        Loans such that, after giving effect to each such deemed assignment and assumption of participations, the percentage of the aggregate outstanding (A) participations hereunder in Letters of Credit and (B) participations hereunder in Swingline Loans
        held by each Revolving Lender (including each such Fifth Amendment Incremental Lender) will equal the percentage of the aggregate Revolving Commitments of all Revolving Lenders represented by such Revolving Lender’s Revolving Commitment and (ii)
        if, on the Fifth Amendment Effective Date, there are any Revolving Loans outstanding, such Revolving Loans shall on or before Fifth Amendment Effective Date be prepaid from the proceeds of additional Revolving Loans made under the Credit Agreement
        (reflecting the increase in Revolving Commitments pursuant hereto), which prepayment shall be accompanied by accrued interest on the Revolving Loans being prepaid and any costs incurred by any Lender in accordance with Section 2.13 of the Credit
        Agreement; it being understood and agreed that the minimum borrowing, pro rata borrowing and pro rata payment requirements contained in the Credit Agreement shall not apply to the transactions effected pursuant to this clause (e); and

     

      

    (g)      this Amendment
        shall constitute an “Incremental Loan Amendment” under the Credit Agreement.

     

      

    2.2          Fifth Amendment Incremental Lenders.  Each Fifth Amendment Incremental Lender hereby agrees, severally and not jointly, to make Revolving Loans to Borrower, at any time and from time to time on and after the Fifth Amendment
        Effective Date until the earlier of the Revolving Maturity Date and the termination of the Revolving Commitment of such Lender in accordance with the terms of the Credit Agreement, in an aggregate principal amount at any time outstanding that will
        not result in such Lender’s Revolving Exposure exceeding such Lender’s Revolving Commitment set forth on Schedule I hereto.

     

      

    
      2

      
        

    

  

  
    2.3          Amendments to Credit Agreement.

     

      

    (a)       Section 1.1 of
        the Credit Agreement is hereby amended by inserting the following definition in proper alphabetical order therein:

     

      

    ““Amendment No. 5 Effective Date”
        means the “Fifth Amendment Effective Date” as defined in the Incremental and Fifth Amendment to Credit Agreement, dated as of August 28, 2018, among the Borrower, the other Loan Parties party thereto, the Lenders party thereto and the
        Administrative Agent.”

     

      

    (b)       The last
        sentence of the definition of “Revolving Commitment” is hereby replaced in its entirety with the following sentence:

     

      

    “The aggregate principal amount of the Lenders’ Revolving Commitments as of the Amendment No. 5 Effective Date is
        $35,000,000.”

     

      

    Section 3.          Effectiveness.  This Amendment shall be legal, valid and binding on the date on which the following conditions precedent are satisfied (the date of such satisfaction, the “Fifth Amendment Effective Date”):

     

      

    (a)       Loan Documents.  The Administrative Agent shall have received each of the following, each in form and substance reasonably satisfactory to the
        Administrative Agent:

     

      

    (i)          counterparts
        of this Amendment duly executed by the Borrower, the Administrative Agent and the Fifth Amendment Incremental Lenders and acknowledged by each Guarantor;

     

      

    (ii)         duly executed
        promissory notes, to the extent requested by any Lender pursuant to Section 2.04(e) of the Credit Agreement;

     

      

    (iii)       a duly
        executed officer’s certificate, dated as of the Fifth Amendment Effective Date and certifying as to the matters set forth in clauses (c), (d) and (e) below (as of the Fifth Amendment Effective Date after giving effect to this Amendment and any
        Credit Extensions that may be made on the Fifth Amendment Effective Date);

     

      

    (iv)       a certificate
        of the secretary or assistant secretary of the Borrower dated as of the Fifth Amendment Effective Date, certifying (i) that attached thereto is a true and complete copy of each organizational document of the Borrower certified (to the extent
        applicable) as of a recent date by the Secretary of State of the state of its incorporation or organization, as the case may be, (ii) that attached thereto is a true and complete copy of resolutions duly adopted by the board of directors, managers,
        or other applicable governing body of the Borrower authorizing the execution, delivery and performance of this Amendment and the documents executed in connection with this Amendment and (iii) as to the incumbency and specimen signature of each
        officer executing any documents delivered in connection with this Amendment on behalf of the Borrower;

     

      

    
      3

      
        

    

    (v)         a certificate
        from the chief financial officer of the Borrower certifying that the Borrower and its subsidiaries on a consolidated basis immediately after giving effect to the transactions contemplated hereby are solvent; and

     

        

    (vi)        a favorable
        written opinion of Jenner & Block LLP as special counsel to the Borrower addressed to each Lender and the Administrative Agent and dated as of the Fifth Amendment Effective Date; and

     

      

    (vii)       such other
        documents, instruments, agreements, certificates, or information as reasonably requested by the Administrative Agent.

     

      

    (b)      Expenses.  The Loan Parties shall have paid to Administrative Agent all reasonable and documented out-of-pocket legal fees and expenses and all other
        reasonable and documented out-of-pocket costs and expenses of the Administrative Agent incurred in connection with the preparation and negotiation of this Amendment.

     

      

    (c)       No Default.  No Default or Event of Default shall have occurred and be continuing at the time of, and immediately after giving effect to, the transactions
        contemplated hereby on the Fifth Amendment Effective Date.

     

      

    (d)      Accuracy of Representation and Warranties.  As of the Fifth Amendment Effective Date, each of the representations and warranties relating to any Loan Party
        set forth in Section 4 below, in Article III of the
        Credit Agreement or in any other Loan Document shall be true and correct in all material respects on and as of the Fifth Amendment Effective Date with the same effect as though made on and as of such date, except to the extent such representations
        and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects on and as of such earlier date); provided that any representation and warranty that is qualified as to “materiality”, “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification
        therein) in all respects on and as of the Fifth Amendment Effective Date.

     

      

    (e)       Financial Covenants.  Borrower is in compliance, on a Pro Forma Basis, with each of the financial covenants specified in Section 6.10 of the Credit
        Agreement on the Fifth Amendment Effective Date and as of the last day of the most recently ended fiscal quarter after giving effect to this Amendment (assuming, for purposes of Section 6.10 of the Credit Agreement, that the maximum Total Net
        Leverage Ratio permitted in any Test Period pursuant to Section 6.10(a) of the Credit Agreement is 0.25 to 1.00 below the maximum Total Net Leverage Ratio set forth in Section 6.10(a) of the Credit Agreement for such Test Period).

     

      

    (f)      Bank Regulatory Documentation.  At least two Business Days prior to the Fifth Amendment Effective Date, (i) to the extent requested not less than five
        Business Days prior to the Fifth Amendment Effective Date, the Lenders shall have received, in form and substance satisfactory to them, all documentation and other information required by bank regulatory authorities or reasonably requested by the
        Administrative Agent or any Lender under or in respect of applicable Anti-Terrorism Laws or “know-your-customer” Legal Requirements, including the Executive Order, and (ii) Borrower, if it qualifies as a “legal entity customer” under the Beneficial
        Ownership Regulation (31 C.F.R. § 1010.230), shall deliver to Agent (and each Lender that so requests) a certification regarding beneficial ownership as required thereby in relation to it.

     

      

    
      4

      
        

    

    Section 4.          Representations and Warranties.  The Borrower hereby represents and warrants to the Administrative Agent and the Lenders party hereto as follows:

     

      

    4.1          Power and Authority.  It has the legal power and authority to execute and deliver this Amendment and perform its obligations hereunder and under the Credit Agreement as amended and otherwise modified hereby.

     

      

    4.2          Authorization.  It has taken all proper and necessary corporate action to authorize the execution, delivery and performance of this Amendment and the transactions contemplated hereby.

     

      

    4.3         Non-Violation.  The execution and delivery of this Amendment and the performance and observance by it of the provisions hereof do not and will not (a) violate the Organizational Documents of any Company, (b) violate or
        result in a default or require any consent or approval under (x) any indenture, instrument, agreement, or other document binding upon any Company or its property or to which any Company or its property is subject, or give rise to a right thereunder
        to require any payment to be made by any Company, except for violations, defaults or the creation of such rights that could not reasonably be expected to result in a Material Adverse Effect or (y) any Organizational Document (other than such as
        have been obtained and are in full force and effect), (c) violate any Legal Requirement in any material respect, and (d) result in the creation or imposition of any Lien on any property of any Company, except Permitted Liens.

     

      

    4.4         Validity and Binding Effect.  This Amendment has been duly executed and delivered by the Borrower and constitutes a legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its
        terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally, regardless of whether considered in a proceeding in equity or at law.

     

      

    4.5         Representations and Warranties in Credit Agreement.  The representations and warranties of each Loan Party contained in the Credit Agreement as amended or
        otherwise modified hereby and each Loan Document are (i) in the case of representations and warranties qualified by materiality, “Material Adverse Effect” or similar language, true and correct in all respects and (ii) in the case of all other
        representations and warranties, true and correct in all material respects, in each case on and as of the Fifth Amendment Effective Date, except to the extent that such representations and warranties specifically refer to an earlier date, in which
        case such representations and warranties are true and correct on the basis set forth above as of such earlier date.

     

      

    4.6          No Event of Default.  No Default or Event of Default shall have occurred and be continuing at the time of, and immediately after giving effect to, the transactions contemplated hereby on the date hereof and on the Fifth
        Amendment Effective Date; and

     

      

    4.7         No Consent.  No consent, exemption, authorization or approval of, registration or filing with, or any other action by, any Governmental Authority is required with respect to any Company in connection with this Amendment, or
        the execution, delivery, performance, validity or enforceability of this Amendment or any other Loan Document, except consents, authorizations, filings and notices which have been obtained or made and are in full force and effect.

     

      

    Section 5.          Guarantor Acknowledgment.  Each Guarantor, by signing this Amendment hereby:

     

      

    5.1        confirms and ratifies its
        respective guarantees, pledges and grants of security interests, as applicable, under each Loan Document to which it is a party, and agrees that notwithstanding the effectiveness of this Amendment and the consummation of the transactions
        contemplated hereby, such guarantees, pledges and grants of security interests shall continue to be in full force and effect and shall accrue to the benefit of the Secured Parties;

     

      

    
      5

      
        

    

    5.2          acknowledges and agrees that all
        of the Loan Documents to which such Guarantor is a party or otherwise bound shall continue in full force and effect and that all of such Guarantor’s obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the
        execution or effectiveness of this Amendment; and

     

      

    5.3          hereby consents and agrees to and
        acknowledges and affirms the terms of this Amendment and the transactions contemplated hereby.

     

      

    Section 6.          Miscellaneous.

     

      

    6.1          Successors and Assigns.  The provisions of this Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

     

      

    6.2          Survival of Representations and Warranties.  All representations and warranties made hereunder shall survive the execution and delivery of this Amendment, and no investigation by the Administrative Agent or the Lenders or
        any subsequent extension of credit shall affect any of such representations and warranties or the right of the Administrative Agent or any Lender to rely upon them.

     

      

    6.3          Severability.  Any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability
        without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

     

      

    6.4          Headings.  The headings, captions and arrangements used in this Amendment are for convenience only and shall not affect the interpretation of this Amendment.

     

      

    6.5         Loan Documents Unaffected.  Each reference to the Credit Agreement in any Loan Document (including, as the context requires, in this Amendment) shall hereafter be construed as a reference to the Credit Agreement as amended
        or otherwise modified hereby.  Except as herein otherwise specifically provided, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of any party under, the Credit
        Agreement or any other Loan Document.  Except as herein otherwise specifically provided, all provisions of the Credit Agreement and the other Loan Documents, and the guarantees, pledges and grants of security interests, as applicable, under each of
        the Security Documents, are hereby reaffirmed and ratified and shall remain in full force and effect, shall continue to accrue to the benefit of the Secured Parties and shall be unaffected hereby.  This Amendment is a Loan Document.

     

      

    6.6         Waiver of Claims.  The Loan Parties hereby acknowledge and agree that, through the date hereof, each of the Administrative Agent and the Lenders has acted in good faith and has conducted itself in a commercially reasonable
        manner in its relationships with the Loan Parties in connection with the Obligations, the Credit Agreement, and the other Loan Documents, and the Loan Parties hereby waive and release any claims to the contrary with respect to the period through
        the Fifth Amendment Effective Date.  To the maximum extent permitted by law, the Loan Parties hereby release, acquit and forever discharge the Administrative Agent and each of the Lenders, their respective Affiliates, and their respective officers,
        directors, employees, agents, attorneys, advisors, successors and assigns, both present and former, from any and all claims and defenses, known or unknown as of the date hereof, with respect to the Obligations, this Amendment, the Credit Agreement,
        the other Loan Documents and the transactions contemplated hereby and thereby.

     

      

    
      6

      
        

    

    6.7        Expenses.  As provided in the Credit Agreement, but without limiting any terms or provisions thereof, each of the Loan Parties hereby jointly and severally agrees to pay on demand all reasonable and documented out-of-pocket
        costs and expenses incurred by the Administrative Agent in connection with the documentation, preparation and execution of this Amendment, regardless of whether this Amendment becomes effective in accordance with the terms hereof, and all
        reasonable and documented out-of-pocket costs and expenses incurred by the Administrative Agent and/or any Lender in connection with the enforcement or preservation of any rights under the Credit Agreement as amended or otherwise modified hereby,
        including reasonable and documented fees and out-of-pocket disbursements of one outside counsel of the Lenders and one counsel to each Agent and any necessary local counsel.

     

      

    6.8          Entire Agreement.  This Amendment, together with the Credit Agreement and the other Loan Documents, integrates all the terms and conditions mentioned herein or incidental hereto and supersedes all oral representations and
        negotiations and prior writings with respect to the subject matter hereof.

     

      

    6.9          Acknowledgments.  Each Loan Party hereby acknowledges that:

     

      

    (a)       it has been advised by counsel in
        the negotiation, execution and delivery of this Amendment and the other Loan Documents;

     

      

    (b)      neither the
        Administrative Agent nor any Lender has any fiduciary relationship with or duty to any Loan Party arising out of or in connection with this Amendment or any of the other Loan Documents, and the relationship between the Administrative Agent and the
        Lenders, on one hand, and the Loan Parties, on the other hand, in connection herewith or therewith is solely that of debtor and creditor; and

     

      

    (c)       no joint venture
        is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Loan Parties and the Lenders.

     

      

    6.10       Counterparts.  This Amendment may be executed by the parties hereto separately in one or more counterparts, each of which when so executed shall be deemed
        to be an original, but all of which when taken together shall constitute one and the same agreement. Transmission by a party to another party (or its counsel) via facsimile or electronic mail of a copy of this Amendment (or a signature page of this
        Amendment) shall be as fully effective as delivery by such transmitting party to the other parties hereto of a counterpart of this Amendment that had been manually signed by such transmitting party.

     

      

    6.11       Governing Law.  THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE
        OF NEW YORK.

     

      

    6.12        Submission To Jurisdiction; Waivers

     

          

    Each Loan Party hereby irrevocably and unconditionally:

     

      

    
      7

      
        

    

    (a)       submits for
        itself and its property in any legal action or proceeding relating to this Amendment and the other Loan Documents to which it is a party, or for recognition and enforcement of any judgment in respect thereof, to the non‐exclusive general
        jurisdiction of the courts of the State of New York, the courts of the United States for the Southern District of New York, and appellate courts from any thereof;

     

      

    (b)     consents that any
        such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient
        court and agrees not to plead or claim the same;

     

      

    (c)      agrees that
        service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to the Borrower or any other Loan Party at its address set
        forth in Section 10.01 of the Credit Agreement, or, in any case, at such other address of which the Administrative Agent shall have been notified pursuant thereto;

     

      

    (d)      agrees that
        nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

     

      

    (e)       waives, to the
        maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section any special, exemplary, punitive or consequential damages.

     

      

    6.13      Jury Trial Waiver.  EACH LOAN PARTY, EACH AGENT AND EACH LENDER SIGNATORY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AMENDMENT (INCLUDING, WITHOUT
        LIMITATION, ANY AMENDMENTS, WAIVERS OR OTHER MODIFICATIONS RELATING TO ANY OF THE FOREGOING) OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

     

      

    
      8

      
        

    

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

    

    

    	 	
            INTERNAP CORPORATION,

          
	 	
            as Borrower

          
	 	 
	 	
            By:

          	
            /s/ James C. Keeley

          

    	 	 	
            Name:

          	
            James C. Keeley

          
	 	 	
            Title:

          	
            Chief Financial Officer

          

    

    

    
      
        

    

    	 	
            JEFFERIES FINANCE LLC,

          
	 	
            as Administrative Agent and a Fifth Amendment Incremental Lender

          
	 	 
	 	
            By:

          	
            /s/ John Koehler

          

    	 	 	
            Name:

          	
            John Koehler

          
	 	 	
            Title:

          	
            Senior Vice President

          

    

    

    
      [Signature Page to Fifth Amendment to Credit
            Agreement]

    

    
      
        

    

    	 	
            PNC BANK, NATIONAL ASSOCIATION,

          
	 	
            as a Fifth Amendment Incremental Lender

          
	 	 
	 	
            By:

          	
            /s/ Brandon K. Fiddler

          

    	 	 	
            Name:

          	
            Brandon K. Fiddler

          
	 	 	
            Title:

          	
            Senior Vice President

          

    

    

    
      [Signature Page to Fifth Amendment to Credit
            Agreement]

    

    
      
        

    

    	 	
            SOCIETE GENERALE,

          
	 	
            as a Fifth Amendment Incremental Lender

          
	 	 
	 	
            By:

          	
            /s/ Mihir Shah

          

    	 	 	
            Name:

          	
            Mihir Shah

          
	 	 	
            Title:

          	
            Director

          

    

    

    
      [Signature Page to Fifth Amendment to Credit
            Agreement]

    

    
      
        

    

    	 	
            Acknowledged and agreed:

          
	 	 
	 	
            UBERSMITH, INC., as a Guarantor

          
	 	 
	 	
            By

          	
            /s/ Richard Diegnan

          
	 	
            Name:

          	
            Richard Diegnan

          
	 	
            Title:

          	
            Corporate Secretary

          
	 	 	 
	 	
            INTERNAP CONNECTIVITY LLC, as a Guarantor

          
	 	 
	 	
            By

          	
            /s/ Richard P. Diegnan

          
	 	
            Name:

          	
            Richard Diegnan

          
	 	
            Title:

          	
            Corporate Secretary

          
	 	 	 
	 	
            SINGLEHOP LLC, as a Guarantor

          
	 	 
	 	
            By

          	
            /s/ Richard P. Diegnan

          
	 	
            Name:

          	
            Richard Diegnan

          
	 	
            Title:

          	
            Secretary

          
	 	 	 
	 	
            DATAGRAM LLC, as a Guarantor

          
	 	 
	 	
            By

          	
            /s/ Richard P. Diegnan

          
	 	
            Name:

          	
            Richard Diegnan

          
	 	
            Title:

          	
            Secretary

          
	 	 	 
	 	
            HOSTING INTELLECT, LLC, as a Guarantor

          
	 	 
	 	
            By

          	
            /s/ Richard P. Diegnan

          
	 	
            Name:

          	
            Richard Diegnan

          
	 	
            Title:

          	
            Secretary

          

    

    

    
      [Signature Page to Fifth Amendment to Credit
            Agreement]

    

    
      
        

    

    SCHEDULE I

    Fifth Amendment Incremental Lenders and Revolving Commitments

     

      

    	
            Revolving Lender

          	
            Address for Notices

          	
            Amount of Fifth 

            Amendment 

            Incremental 

            Revolving 

            Commitments

          	
            Amount of 

            Revolving 

            Commitments

          
	
            JEFFERIES FINANCE LLC

          	
            520 Madison Avenue, New York, New York 10022

             

              

          	
            $3,000,000

          	
            $10,500,000

          
	
            PNC BANK, NATIONAL ASSOCIATION

          	
            1075 Peachtree Street, Suite 1800

            Atlanta, GA 30309

            G4-XMDA-18-8

          	
            $5,000,000

          	
            $17,500,000

          
	
            SOCIETE GENERALE

          	
            245 Park Avenue

            New York, NY 10167

          	
            $2,000,000

          	
            $7,000,000

          
	
            Total

          	 	
            $10,000,000

          	
            $35,000,000Exhibit 10.1

 

Execution Version

 

AMENDMENT NO. 2

 

THIS AMENDMENT NO. 2 (this “Agreement”), dated as of August 28, 2018, is made among Synergy Pharmaceuticals Inc., a Delaware corporation (“Borrower”), the Subsidiary Guarantors as from time to time party hereto, the Lenders listed on the signature pages hereof under the heading “LENDERS” (each a “Lender” and, collectively, the “Lenders”), and CRG Servicing LLC, a Delaware limited liability company (“CRG Servicing”), as administrative agent and collateral agent for the Lenders (in such capacities, together with its successors and assigns, “Agent”).

 

The Obligors, the Lenders and Agent are parties to that certain Term Loan Agreement, dated as of September 1, 2017 (as amended by that certain Amendment No. 1, dated as of February 26, 2017 (“Amendment No. 1”), and as further amended, restated, modified or supplemented from time to time, the “Loan Agreement”).

 

The parties hereto desire to amend the Loan Agreement on the terms and subject to the conditions set forth herein.

 

Accordingly, the parties hereto agree as follows:

 

SECTION 1.                         Definitions; Interpretation.

 

(a)                                 Terms Defined in Loan Agreement.  All capitalized terms used in this Agreement (including in the recitals hereof) and not otherwise defined herein shall have the meanings assigned to them in the Loan Agreement.

 

(b)                                 Interpretation.  The rules of interpretation set forth in Section 1.03 of the Loan Agreement shall be applicable to this Agreement and are incorporated herein by this reference.

 

SECTION 2.                         Amendment.  Subject to Section 3, the Loan Agreement is hereby amended as follows:

 

(a)                                 Section 6.02(a)(i) shall be amended by inserting the following immediately prior to the “.” at the end thereof:

 

“; provided that (i) such Borrowing may occur after June 30, 2018 through and including October 31, 2018 so long as Borrower pays to Administrative Agent, for the account of each Lender, an aggregate fee, in addition to any fees payable to Administrative Agent pursuant to the Fee Letter or otherwise due hereunder, in the amount of $2,500,000, which fee shall be paid via setoff from the proceeds of such Borrowing when advanced to Borrower”

 

(b)                                 Sections 6.02(b)(i) shall be amended and restated in its entirety as follows:

 

 

“(i)                               Borrowing Date.  Such Borrowing shall occur no later than December 31, 2018.”

 

(c)                                  Section 6.02(c)(i) shall be amended and restated in its entirety as follows:

 

“(i)                               Borrowing Date.  Such Borrowing shall occur no later than February 28, 2019.”

 

(d)                                 Section 8.15 shall be amended by deleting the text “[Reserved]” therein and replacing it in its entirety with the following:

 

“Board Observation Rights.  Such Obligor shall permit (i) a designated representative of the Administrative Agent and the Lenders (who may change from time to time at the sole discretion of Administrative Agent) (such representative, the “Representative”) to attend all meetings of Borrower’s board of directors as a non-voting observer and (ii) the Administrative Agent or any Lender to provide such Representative any and all materials delivered to the Administrative Agent or any Lender pursuant to Section 8.01(h), in each case of clause (i) and (ii), subject to such Representative entering into a form of confidentiality agreement reasonably acceptable to the Obligors to maintain as confidential the information received and reviewed in its capacity as Representative.  Upon reasonable notice and at a scheduled meeting of Borrower’s board of directors or such other time, if any, as Borrower’s board of directors may determine in its reasonable discretion, the Representative may address Borrower’s board of directors with respect to a Lender’s concerns regarding business issues facing the Obligors and which such Lender deems significant. Notwithstanding anything herein to the contrary, Borrower may exclude the Representative from access to any board materials, meeting or portion thereof if Borrower’s board of directors concludes, after review with and based upon the advice of outside counsel, that (i) such exclusion is reasonably necessary to preserve the attorney-client or work product privilege between Borrower and its counsel (provided, however, that any such exclusion shall only apply to such portion of such material or meeting which would be required to preserve such privilege) or (ii) such board materials or discussion relates to Borrower’s relationship, contractual or otherwise, with Administrative Agent, any of the Lenders or any actual or potential transactions between or involving Borrower and Administrative Agent, any of the Lenders or any of their affiliates.”

 

SECTION 3.                         Conditions to Effectiveness.  The effectiveness of Section 2 shall be subject to the following conditions precedent:

 

(a)                                 The Obligors shall have paid or reimbursed Lenders for Lenders’ reasonable out of pocket costs and expenses incurred in connection with this Agreement that have been invoiced

 

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at least one Business Day prior to the date hereof, including Lenders’ reasonable out of pocket legal fees and costs, pursuant to Section 13.03(a)(i)(z) of the Loan Agreement;

 

(b)                                 The representations and warranties in Section 4 shall be true and correct on the date hereof; and

 

(c)                                  Agent shall have received, in form and substance reasonably satisfactory to it and the Lenders, this Agreement duly executed by Borrower, Agent and Lenders.

 

SECTION 4.                         Representations and Warranties; Reaffirmation.

 

(a)                                 Each Obligor hereby represents and warrants to Agent and each Lender as follows:

 

(i)                                     Such Obligor has full power, authority and legal right to make and perform this Agreement and the Loan Agreement, as modified by this Agreement (the “Amended Loan Agreement”).  Each of this Agreement and the Amended Loan Agreement is within such Obligor’s corporate powers and has been duly authorized by all necessary corporate and, if required, by all necessary shareholder action.  This Agreement has been duly executed and delivered by such Obligor and each of this Agreement and the Amended Loan Agreement constitutes legal, valid and binding obligations of such Obligor, enforceable against such Obligor in accordance with its terms, except as such enforceability may be limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar laws of general applicability affecting the enforcement of creditors’ rights and (b) the application of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).  Each of this Agreement and the Amended Loan Agreement (x) does not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority or any third party, except for such as have been obtained or made and are in full force and effect, (y) will not violate any applicable law or regulation or the charter, bylaws or other organizational documents of such Obligor and its Subsidiaries or any order of any Governmental Authority, other than any such violations that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect, (z) will not violate or result in an event of default under any material indenture, agreement or other instrument binding upon such Obligor and its Subsidiaries or assets, or give rise to a right thereunder to require any payment to be made by any such Person.

 

(ii)                                  No Default has occurred or is continuing or will result after giving effect to this Agreement.

 

(iii)                               The representations and warranties made by or with respect to such Obligor in Section 7 of the Amended Loan Agreement are true and correct in all material respects (and, in all respects, for such representations and warranties that are by their terms already qualified as to materiality) on the date hereof, except that such representations and warranties that refer to a specific earlier date were true and correct in all material respects (and, in all respects, for such representations and warranties that are by their terms already qualified as to materiality) on such earlier date.

 

(iv)                              There has been no Material Adverse Effect since the date of the Loan Agreement.

 

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(b)                                 Each Obligor hereby ratifies, confirms, reaffirms, and acknowledges its obligations under the Loan Documents to which it is a party and agrees that the Loan Documents remain in full force and effect, undiminished by this Agreement, except as expressly provided herein.  By executing this Agreement, each Obligor acknowledges that it has read, consulted with its attorneys regarding, and understands, this Agreement.

 

SECTION 5.                         Governing Law; Submission To Jurisdiction; Waiver Of Jury Trial.

 

(a)                                 Governing Law.  This Agreement and the rights and obligations of the parties hereunder shall be governed by, and construed in accordance with, the law of the State of New York, without regard to principles of conflicts of laws that would result in the application of the laws of any other jurisdiction; provided that Section 5-1401 of the New York General Obligations Law shall apply.

 

(b)                                 Submission to Jurisdiction.  Each Obligor agrees that any suit, action or proceeding with respect to this Agreement or any other Loan Document to which it is a party or any judgment entered by any court in respect thereof may be brought initially in the federal or state courts in Houston, Texas or in the courts of its own corporate domicile and irrevocably submits to the non-exclusive jurisdiction of each such court for the purpose of any such suit, action, proceeding or judgment.  This Section 5 is for the benefit of the Lenders only and, as a result, no Lender shall be prevented from taking proceedings in any other courts with jurisdiction.  To the extent allowed by applicable Laws, the Lenders may take concurrent proceedings in any number of jurisdictions.

 

(c)                                  Waiver of Jury Trial.  Each Obligor and each Lender hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any suit, action or proceeding arising out of or relating to this Agreement, the other Loan Documents or the transactions contemplated hereby or thereby.

 

SECTION 6.                         Miscellaneous.

 

(a)                                 No Waiver.  Nothing contained herein shall be deemed to constitute a waiver of compliance with any term or condition contained in the Loan Agreement or any of the other Loan Documents or constitute a course of conduct or dealing among the parties.  Except as expressly stated herein, the Lenders reserve all rights, privileges and remedies under the Loan Documents (including, without limitation, all such rights, privileges and remedies with respect to any Default, Event of Default or Material Adverse Effect, whether communicated or not to the Lenders or Agent).  Except as amended hereby, the Loan Agreement and other Loan Documents remain unmodified and in full force and effect.

 

(b)                                 Severability.  In case any provision of or obligation under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby.

 

(c)                                  Headings.  Headings and captions used in this Agreement (including the Exhibits, Schedules and Annexes hereto, if any) are included for convenience of reference only and shall not be given any substantive effect.

 

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(d)                                 Integration.  This Agreement constitutes a Loan Document and, together with the other Loan Documents, incorporates all negotiations of the parties hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof.

 

(e)                                  Counterparts.  This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument and any of the parties hereto may execute this Agreement by signing any such counterpart.

 

(f)                                   Controlling Provisions.  In the event of any inconsistencies between the provisions of this Agreement and the provisions of any other Loan Document, the provisions of this Agreement shall govern and prevail.

 

(g)                                  Loan Document.  This Agreement is a Loan Document.

 

(h)                                 Waiver No. 2. That certain Waiver No. 2, dated as of June 12, 2018, among the Obligors, each Lender a party thereto and Agent, is hereby null, void and of no effect, such that such Waiver No. 2 shall not apply under any circumstances with respect to any of the parties thereto or hereto.

 

(i)                                     Amendment No. 1.  For the avoidance of doubt, the deletion and replacement of certain provisions of the Loan Agreement, as set forth in Sections 2(c) and 2(d) of Amendment No. 1, deleted and replaced such provisions in their entirety.

 

[Remainder of page intentionally left blank]

 

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

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
SYNERGY PHARMACEUTICALS INC.
    
	
 
    	
 
    
	
 
    	
By 
    	
/s/ Gary G. Gemignani
    
	
 
    	
 
    	
Name: Gary G. Gemignani
    
	
 
    	
 
    	
Title:     EVP, Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
SUBSIDIARY GUARANTORS:
    
	
 
    	
 
    
	
 
    	
SYNERGY ADVANCED PHARMACEUTICALS, INC.
    
	
 
    	
 
    
	
 
    	
By 
    	
/s/ Gary G. Gemignani
    
	
 
    	
 
    	
Name: Gary G. Gemignani
    
	
 
    	
 
    	
Title:     EVP, Chief Financial Officer
    

 

[Signature Page to Amendment No. 2]

 

 

	
ADMINISTRATIVE AGENT:
    	
 
    
	
 
    	
 
    
	
CRG SERVICING LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By 
    	
/s/ Nathan Hukill
    	
 
    
	
Name: Nathan Hukill
    	
 
    
	
Title: President
    	
 
    
			

 

[Signature Page to Amendment No. 2]

 

 

LENDERS:

 

CRG PARTNERS III—PARALLEL FUND “A” L.P.

 

By: CRG PARTNERS III—PARALLEL FUND “A” GP L.P.,

its General Partner

 

By: CRG PARTNERS III GP LLC,

its General Partner

 

	
By
    	
/s/ Nathan   Hukill
    	
 
    
	
Name: Nathan   Hukill
    	
 
    
	
Title:   Authorized Signatory
    	
 
    

 

 

CRG PARTNERS III (CAYMAN) UNLEV AIV I L.P.

 

By: CRG PARTNERS III (CAYMAN) GP L.P.,

its General Partner

 

By: CRG PARTNERS III GP LLC,

its General Partner

 

 

	
By
    	
/s/ Nathan   Hukill
    	
 
    
	
Name: Nathan   Hukill
    	
 
    
	
Title:   Authorized Signatory
    	
 
    
	
 
    	
 
    
	
Witness:
    	
/s/ Nicole Neeson
    	
 
    
	
Name:
    	
Nicole Neeson
    	
 
    
				

 

 

CRG ISSUER 2017-1

 

By: CRG SERVICING LLC,

acting by power of attorney

 

	
By
    	
/s/ Nathan   Hukill
    	
 
    
	
Name: Nathan Hukill
    	
 
    
	
Title:   Authorized Signatory
    	
 
    

 

[Signature Page to Amendment No. 2]

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