Document:

exv10w7

Exhibit 10.7

SECURITY AGREEMENT SUPPLEMENT

          Supplement
No. 1 (this “Supplement”) dated as of August 16, 2010, to the Security
Agreement, dated as of March 12, 2010 (as amended, restated, supplemented or otherwise modified
from time to time, the “Security Agreement”), by each of the parties listed on the
signature pages thereto and those additional entities that thereafter become parties thereto
(collectively, jointly and severally, “Grantors” and each individually “Grantor”)
and SUNTRUST BANK, in its capacity as Collateral agent for the Secured Parties (together with its
successors, “Collateral Agent”).

W I T N E S S E T H:

          WHEREAS, pursuant to that certain Credit Agreement, dated as of March 12, 2010 (as amended,
restated, supplemented, Refinanced, in whole or in part, replaced or otherwise modified from time
to time, the “Credit Agreement”), by and among Zayo Group, LLC, a Delaware limited
liability company (the “Administrative Borrower”), Zayo Capital, Inc., a Delaware
corporation (“Zayo Capital”; and together with the Administrative Borrower, each,
individually a “Borrower” and, collectively, the “Borrowers”), the Persons party
thereto from time to time as Guarantors (the “Guarantors”), the financial institutions
party thereto as lenders (the “Lenders”), SunTrust Bank, as the Issuing Bank, SunTrust
Bank, as the administrative agent for the Lenders (the “Administrative Agent”), and
SunTrust Bank, as Collateral Agent, the Lender Group is willing to make certain financial
accommodations available to the Borrower from time to time pursuant to the terms and conditions
thereof;

          WHEREAS, pursuant to that certain Indenture, dated as of March 12, 2010 (as amended, restated,
supplemented. Refinanced, in whole or in part, replaced or otherwise modified from time to time,
the “Indenture”), by and among the Borrower, the Guarantors and The Bank of New York Mellon
Trust Company, N.A. , as indenture trustee for the holders of the Senior Note Indebtedness (the
“Trustee”; together with the Lender Group, Collateral Agent and the holders from time to time of
the Senior Note Indebtedness, and any Additional Loan and Notes Secured Parties (as defined in the
Intercreditor Agreement), the “Secured Parties”), the Borrowers issued or propose to issue
their 10.25% Senior Secured Notes due 2017 in the original principal amount of $250,000,000;

          WHEREAS, the Secured Parties are willing to make the financial accommodations to the Borrower
as provided for in the Credit Agreement and the Indenture, but only upon the condition, among
others, that Grantors shall have executed and delivered to Collateral Agent, for the benefit of the
Secured Parties, that certain Security Agreement, dated as of March 12, 2010 (including all
annexes, exhibits or schedules thereto, as from time to time amended, restated, supplemented or
otherwise modified, the “Security Agreement):

          WHEREAS, capitalized terms used herein and not otherwise defined herein shall have the
meanings assigned to such terms in the Security Agreement or, if not defined therein, in the
Credit Agreement;

          WHEREAS, Grantors have entered into the Security Agreement in order to induce the Secured
Parties to make certain financial accommodations to the Borrower; and

          WHEREAS, pursuant to the Credit Agreement and the Indenture, new direct or indirect Domestic
Subsidiaries of the Borrower must execute and deliver certain Loan Documents and Senior Note
Documents, including the Security Agreement, and the execution of the Security Agreement by the
undersigned new Grantor or Grantors (collectively, the “New Grantors”) may be accomplished
by the execution of this Supplement in favor of Collateral Agent, for the benefit of the Secured
Parties;

 

 

          NOW, THEREFORE, for and in consideration of the foregoing and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, each New Grantor
hereby agrees as follows:

     1. In accordance with Section 25 of the Security Agreement, each New Grantor, by its
signature below, becomes a “Grantor” under the Security Agreement with the same force and effect
as if originally named therein as a “Grantor” and each New Grantor hereby (a) agrees to all of the
terms and provisions of the Security Agreement applicable to it as a “Grantor” thereunder and (b)
represents and warrants that the representations and warranties made by it as a “Grantor”
thereunder are true and correct on and as of the date hereof. In furtherance of the foregoing,
each New Grantor, as security for the payment and performance in full of the Secured Obligations,
does hereby grant, assign, and pledge to Collateral Agent, for the benefit of the Secured Parties,
a security interest in and security title to all assets of such New Grantor of the type described
in Section 2 of the Security Agreement to secure the full and prompt payment of the
Secured Obligations, including, any interest thereon, plus attorneys’ fees and expenses if the
Secured Obligations represented by the Security Agreement are collected by law, through an
attorney-at-law, or under advice therefrom. Schedule 1, “Commercial Tort Claims”,
Schedule 2, “Copyrights”, Schedule 3, “Intellectual Property Licenses”,
Schedule 4, “Patents”, Schedule 5, “Pledged Companies”, Schedule 6,
“Trademarks”, Schedule 7, “Trade Names; Organizational Identification Numbers; Chief
Executive Offices”, Schedule 8, “Owned Real Property”, Schedule 9, “List of
Uniform Commercial Code Filing Jurisdictions” attached hereto
supplement Schedule 1, Schedule 2, Schedule 3, Schedule 4, Schedule 5, Schedule 6,
Schedule 7, Schedule 8 and Schedule 9, respectively, to the Security Agreement and
shall be deemed a part thereof for all purposes of the Security Agreement. Each reference to a
“Grantor” in the Security Agreement shall be deemed to include each New Grantor. The Security
Agreement is incorporated herein by reference.

     2. Each New Grantor represents and warrants to the Secured Parties that this Supplement has
been duly executed and delivered by such New Grantor and constitutes its legal, valid and binding
obligation, enforceable against it in accordance with its terms, except as enforceability thereof
may be limited by bankruptcy, insolvency, reorganization, fraudulent transfer, moratorium or other
similar laws affecting creditors’ rights generally and general principles of equity (regardless of
whether such enforceability is considered in a proceeding at law or in equity).

     3. This Supplement may be executed in multiple 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. Delivery of a counterpart hereof by facsimile transmission or by other electronic
transmission shall be as effective as delivery of a manually executed counterpart hereof.

     4. Except as expressly supplemented hereby, the Security Agreement shall remain in full force
and effect.

     5. This Supplement shall be construed in accordance with and governed by the laws of the State
of New York.

[remainder of page left blank intentionally]

 

 

          IN WITNESS WHEREOF, each New Grantor and Collateral Agent have duly executed
this Supplement to the Security Agreement as of the day and year first above written.

	 	 	 	 	 
	 NEW GRANTORS:                                   	ZAYO FIBER SOLUTIONS, LLC

 	 
	 	By:  	/s/ Scott E. Beer
 	 
	 	 	Name:  	Scott E. Beer 	 
	 	 	Title:  	General Counsel & Secretary 	 
	 
	 COLLATERAL AGENT:                         	SUNTRUST BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Security
Agreement Supplement

 

 

SECURITY AGREEMENT SCHEDULE SUPPLEMENT

As of August 16, 2010

 

 

Schedule 1

Commercial Tort Claims

     None.

2

 

Schedule 2

Copyrights

     None.

3

 

Schedule 3

Intellectual Property Licenses

     None.

4

 

Schedule 4

Patents

     None.

5

 

Schedule 5

Pledged Companies

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	% of Total
	 	 	 	 	 	 	 	 	 	 	Equity
	 	 	 	 	 	 	 	 	 	 	Represented
	 	 	 	 	 	 	Number of	 	Certificate	 	by
	Pledgor	 	Pledged Entity	 	Type of Interest	 	Shares/Units	 	No.	 	Certificate
	Zayo Group, LLC
	 	Zayo Fiber	 	Membership Interest	 	1,000	 	1	 	100%
	 
	 	Solutions, LLC	 	Units	 	 	 	 	 	 

6

 

Schedule 6

Trademarks

None

7

 

Schedule 7

Trade
Names; Organizational Identification Numbers; Chief Executive Offices

	 	 	 	 	 	 	 	 	 	 	 
	 	 	Trade Name	 	Organizational	 	 	 	 	 	
	Entity, State of	 	(within last 5	 	Identification	 	Chief Executive	 	Principal Place	 	Location of
	Incorporation	 	years)	 	Number	 	Office	 	of Business	 	Books/Records
	Zayo Fiber 

Solutions, LLC, 

Delaware

	 	f/k/a AGL
 Networks,
LLC
	 	EIN 58-2567531
	 	400 Centennial

Parkway, Ste 200

Louisville, CO 80027
	 	400 Centennial 

Parkway, Ste 200 

Louisville, CO 80027 	 	400 Centennial

Parkway, Ste 200

Louisville, CO 80027

8

 

Schedule 8

Owned Real Property

     None.

9

 

Schedule 9

List of Uniform Commercial Code Filing Jurisdictions

	 	 	 	 	 
	 	 	Filing Jurisdiction –	 	Filing Jurisdiction –
	Grantor	 	Personal Property	 	Transmitting Utility Filing
	Zayo Fiber Solutions, LLC
	 	Delaware
	 	Delaware, Georgia, North

Carolina, Arizona,
Missouri*,
 Tennessee*,
Virginia*
	 	 	 	 	 
	 
	 	 	 	* States where ZFS leases
3rd 
party fiber
to support customer

solutions (not ZFS owned
fiber)

10exv10w9

Exhibit 10.9

TRADEMARK SECURITY AGREEMENT

          This TRADEMARK SECURITY AGREEMENT (this “Trademark Security Agreement”) is made as of
this 12th day of March, 2010, among Grantors listed on the signature pages hereof (collectively,
jointly and severally, “Grantors” and each individually “Grantor”), and SUNTRUST
BANK, in its capacity as collateral agent for the Secured Parties (together with its successors,
“Collateral Agent”).

W I T N E S S E T H:

          WHEREAS, pursuant to that certain Credit Agreement, dated as of the date hereof (as amended,
restated, supplemented, Refinanced, in whole or in part, replaced or otherwise modified from time
to time, the “Credit Agreement”), by and among Zayo Group, LLC, a Delaware limited
liability company (the “Administrative Borrower”), Zayo Capital, Inc., a Delaware
corporation (“Zayo Capital”; and together with the Administrative Borrower, each,
individually a “Borrower” and, collectively, the “Borrowers”), the Persons party
thereto from time to time as Guarantors (the “Guarantors”), the financial institutions
party thereto as lenders (the “Lenders”), SunTrust Bank, as the Issuing Bank, SunTrust
Bank, as the administrative agent for the Lenders (the “Administrative Agent”), and
SunTrust Bank, as Collateral Agent, the Lender Group is willing to make certain financial
accommodations available to the Borrower from time to time pursuant to the terms and conditions
thereof;

          WHEREAS, pursuant to that certain Indenture, dated as of the date hereof (as amended,
restated, supplemented, Refinanced, in whole or in part, replaced or otherwise modified from time
to time, the “Indenture”), by and among the Borrower, the Guarantors and The Bank of New
York Mellon Trust Company, N.A. , as indenture trustee for the holders of the Senior Note
Indebtedness (the “Trustee”; together with the Lender Group, Collateral Agent and the
holders from time to time of the Senior Note Indebtedness, and any Additional Loan and Notes
Secured Parties (as defined in the Intercreditor Agreement), the “Secured Parties”), the
Borrowers issued or propose to issue their 10.25% Senior Secured Notes due 2017 in the original
principal amount of $250,000,000;

          WHEREAS, the Secured Parties are willing to make the financial accommodations to the Borrower
as provided for in the Credit Agreement and the Indenture, but only upon the condition, among
others, that Grantors shall have executed and delivered to Collateral Agent, for the benefit of the
Secured Parties, that certain Security Agreement, dated as of March 12, 2010, (including all
annexes, exhibits or schedules thereto, as from time to time amended, restated, supplemented or
otherwise modified, the “Security Agreement”); and

          WHEREAS, pursuant to the Security Agreement, Grantors are required to execute and deliver to
Collateral Agent, for the benefit of the Secured parties, this Trademark Security Agreement;

          NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Grantors hereby agree as follows:

 

 

     1. DEFINED TERMS. All capitalized terms used but not otherwise defined herein have
the meanings given to them in the Security Agreement or, if not defined therein, in the Credit
Agreement.

     2. GRANT OF SECURITY INTEREST IN TRADEMARK COLLATERAL. Each Grantor hereby grants to
Collateral Agent, for the benefit of the Secured Parties, a continuing first priority security
interest in all of such Grantor’s right, title and interest in, to and under the following, whether
presently existing or hereafter created or acquired (collectively, the “Trademark
Collateral”):

          (a) all of its Trademarks (other than any intent-to-use United States Trademark application
for which an amendment to allege use or statement of use has not been filed and accepted by the
United States Patent and Trademark Office) and Trademark Intellectual Property Licenses to which it
is a party including those referred to on Schedule I hereto;

          (b) all goodwill, trade secrets, proprietary or confidential information, technical
information, procedures, formulae, quality control standards, designs, operating and training
manuals, customer lists, and other General Intangibles with respect to the foregoing;

          (c) all reissues, continuations or extensions of the foregoing;

          (d) all goodwill of the business connected with the use of, and symbolized by, each Trademark
and each Trademark Intellectual Property License; and

          (e) all proceeds of the foregoing, including any claim by such Grantor against third parties
for past, present or future (i) infringement or dilution of any Trademark or any Trademark licensed
under any Intellectual Property License or (ii) injury to the goodwill associated with any
Trademark or any Trademark licensed under any Intellectual Property License.

     3. SECURITY FOR OBLIGATIONS. This Trademark Security Agreement and the Security
Interest created hereby secures the payment and performance of all the Secured Obligations, whether
now existing or arising hereafter. Without limiting the generality of the foregoing, this
Trademark Security Agreement secures the payment of all amounts which constitute part of the
Obligations and the Senior Note Indebtedness and would be owed by Grantors, or any of them, to
Collateral Agent, the Secured Parties, or any of them, whether or not they are unenforceable or not
allowable due to the existence of an Insolvency Proceeding involving any Grantor.

     4. SECURITY AGREEMENT. The security interests granted pursuant to this Trademark
Security Agreement are granted in conjunction with the security interests granted to Collateral
Agent, for the benefit of the Secured Parties, pursuant to the Security Agreement. Each Grantor
hereby acknowledges and affirms that the rights and remedies of Collateral Agent with respect to
the security interest in the Trademark Collateral made and granted hereby are more fully set forth
in the Security Agreement, the terms and provisions of which are incorporated by reference herein
as if fully set forth herein.

2

 

     5. AUTHORIZATION TO SUPPLEMENT. If any Grantor shall obtain rights to any new
trademarks, the provisions of this Trademark Security Agreement shall automatically apply thereto.
Grantors shall give prompt notice in writing to Collateral Agent with respect to any such new
trademarks or renewal or extension of any trademark registration. Without limiting Grantors’
obligations under this Section 5, Grantors hereby authorize Collateral Agent unilaterally
to modify this Agreement by amending Schedule I to include any such new trademark rights of
Grantors. Notwithstanding the foregoing, no failure to so modify this Trademark Security Agreement
or amend Schedule I shall in any way affect, invalidate or detract from Collateral Agent’s
continuing security interest in all Collateral, whether or not listed on Schedule I.

     6. COUNTERPARTS. This Trademark Security Agreement 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 Trademark Security
Agreement, any other Loan Document or any other Senior Note Document in any judicial proceedings,
it shall not be necessary to produce or account for more than one such counterpart signed by the
party against whom such enforcement is sought. Any signatures delivered by a party by facsimile
transmission or other electronic transmission shall be deemed an original signature hereto.

     7. CONSTRUCTION. Unless the context of this Trademark Security Agreement, any other
Loan Document or any other Senior Note Document clearly requires otherwise, references to the
plural include the singular, references to the singular include the plural, the terms “includes”
and “including” are not limiting, and the term “or” has, except where otherwise indicated, the
inclusive meaning represented by the phrase “and/or.” The words “hereof,” “herein,” “hereby,”
“hereunder,” and similar terms in this Trademark Security Agreement refer to this Trademark
Security Agreement as a whole and not to any particular provision of this Trademark Security
Agreement. Section, subsection, clause, schedule, and exhibit references herein are to this
Agreement unless otherwise specified. Any reference in this Trademark Security Agreement, in any
other Loan Document, or in any other Senior Note Document to any agreement, instrument, or document
shall include all alterations, amendments, changes, extensions, modifications, renewals,
replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject
to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals,
replacements, substitutions, joinders, and supplements set forth herein). Any reference herein to
the satisfaction or repayment in full of the Obligations and the Senior Note Indebtedness shall
mean the repayment in full in cash (or cash collateralization in accordance with the terms hereof)
of all Obligations and Senior Note Indebtedness other than unasserted contingent indemnification
Obligations and Senior Note Indebtedness. Any reference herein to any Person shall be construed to
include such Person’s successors and assigns. Any requirement of a writing contained herein, in
any other Loan Document or in any other Senior Note Document shall be satisfied by the transmission
of a Record and any Record so transmitted shall constitute a representation and warranty as to the
accuracy and completeness of the information contained therein.

[remainder of page left blank intentionally]

3

 

          IN WITNESS WHEREOF, each Grantor has caused this Trademark Security Agreement to be executed
and delivered by its duly authorized officer as of the date first set forth above.

	 	 	 	 	 
	GRANTORS:                                                 	ZAYO GROUP, LLC

 	 
	 	By:  	/s/ Ken desGarennes
 	 
	 	 	Name:  	Ken desGarennes 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ZAYO BANDWIDTH TENNESSEE, LLC

 	 
	 	By:  	/s/ Ken desGarennes
 	 
	 	 	Name:  	Ken desGarennes 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ZAYO ENTERPRISE NETWORKS, LLC

 	 
	 	By:  	/s/ Ken desGarennes
 	 
	 	 	Name:  	Ken desGarennes 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	ZAYO COLOCATION, INC.

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

Trademark
Security Agreement

 

 

	 	 	 	 	 

	 	 	 	 	 
	ACCEPTED AND ACKNOWLEDGED BY:                                   	SUNTRUST BANK, as Collateral Agent

 	 
	 	By:  	/s/ Horace J. Zona III
 	 
	 	 	Name:  	Horace J. Zona III 	 
	 	 	Title:  	Managing Director 	 
	 

Trademark
Security Agreement

 

 

Schedule 1

Trademark Registrations/Applications, Trademark Licenses

U.S. Trademarks:

	 	 	 	 	 	 	 
	 	 	 	 	Application Serial	 	Registration Number/
	Registered Owner	 	Trademark Description	 	Number/Filing Date	 	Registration Date
	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
	 	Application Still Pending
	 
	 	 	 	 	 	 
	Zayo Bandwidth 

Tennessee, LLC

	 	MEMPHIS NETWORX & Design
	 	75873249
December 17, 1999
	 	2572278
May 21, 2002
	 
	 	 	 	 	 	 
	Zayo Bandwidth 

Tennessee, LLC

(formerly known as 

Memphis Networx, 

LLC)*

	 	MEMPHIS NETWORX THE

BACKBONE OF THE CITY &

Design
	 	76537187
August 4, 2003
	 	2878837
August 31, 2004
	 
	 	 	 	 	 	 
	Zayo Bandwidth 

Tennessee, LLC

	 	MEMPHIS NETWORX
	 	75873248
December 17, 1999
	 	2545349
March 5, 2002
	 
	 	 	 	 	 	 
	Zayo Enterprise 

Networks, LLC

(formerly known as 

VoicePipe 

Communications, 

LLC)*

	 	VOICEPIPE
	 	78202250
January 10, 2003
	 	2853563
June 15, 2004
	 
	 	 	 	 	 	 
	Zayo Colocation,
Inc. (formerly
known as FiberNet
Telecom Group,
Inc.)*

	 	
	 	78693888
August 16, 2005
	 	3395986
March 11, 2008
	 
	 	 	 	 	 	 
	Zayo Colocation,
Inc. (formerly
known as FiberNet
Telecom Group,
Inc.)*

	 	
	 	77044317
November 15, 2006
	 	3361370
January 1, 2008

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Application Serial	 	Registration Number/
	Registered Owner	 	Trademark Description	 	Number/Filing Date	 	Registration Date
	Zayo Colocation, Inc.
(formerly known as
FiberNet Telecom
Group, Inc.)*

	 	
	 	77037993
November 6, 2006
	 	3350844
December 11, 2007
	 
	 	 	 	 	 	 
	Zayo Colocation, Inc.
(formerly known as
FiberNet Telecom
Group, Inc.)*

	 	
	 	78750871
November 9, 2005
	 	3198383
January 16, 2007

 

			
	*	 	Per schedule 6.20 to the Credit Agreement, the applicable Borrower Party shall update
ownership information of record for this Trademark.

Foreign Trademarks:

None issued or pending.

Trademark Licenses: 

None issued or pending.

Trade Names:

	 	1.	 	Zayo Group, LLC was formerly CII Holdco, Inc. Its name was changed to Zayo
Bandwidth, Inc. on August 13, 2007 and it was converted from Zayo Bandwidth, Inc. and
its name changed to Zayo Group, LLC on February 15, 2008.
	 
	 	2.	 	Zayo Enterprise Networks, LLC was formerly Zayo Managed Services, LLC and
VoicePipe Communications, LLC. VoicePipe Communications, LLC was formerly VoicePipe
Communications, Inc. and was originally a division of ICG Communications, Inc.
	 
	 	3.	 	Zayo Bandwidth Tennessee, LLC was formerly Memphis Networx, LLC (prior to
August 22, 2007)
	 
	 	4.	 	Zayo Colocation, Inc. was formerly known as FiberNet Telecom Group, Inc.
(prior to January 29, 2010)

Common Law Trademarks:

None.

Trademarks Not Currently in Use:

None.

2

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