Document:

Exhibit 4.1

 

PARKVIEW
CAPITAL CREDIT, INC.

 

FORM
OF SUBSCRIPTION AGREEMENT

 

and

  

Name
of Subscriber: ______________________________________

 

Requested
Capital Contribution:  $____________________________

  

    	 

    	 

    

 

Table
of Contents

 

	 	Page
	 	 
	Directions
    for the Completion of the Subscription Documents	ii
	 	 
	Subscription
    Agreement	4
	 	 
	Signature
    Page of Parkview Capital Credit, Inc	17
	 	 
	Schedule
    1 to Subscription Agreement:  Subscriber Information (For All Subscribers)	18
	 	 
	Schedule
    2 to Subscription Agreement:  Status as Benefit Plan Investor (For All Subscribers)	23
	 	 
	Annex
    A to Subscription Agreement:  Subscriber Questionnaire for Individual Investors	26
	 	 
	Annex
    B to Subscription Agreement:  Subscriber Questionnaire for Institutional Investors	29
	 	 
	Exhibit
    A:  Definitions for Purposes of Determining Qualified Purchaser Status	35
	 	 
	Appendix
    1 – Questionnaire For Benefit Plan Investors	37
	 	 
	Appendix
    2 – Electronic Mail Authorization	39

 

    	-i-

    	 

    

 

Directions
for the Completion of the Subscription Documents

 

The
attached Subscription Agreement (including the Annexes, Schedules and Exhibits attached thereto, the “Subscription Documents”)
relates to the offering by Parkview Capital Credit, Inc., a Maryland corporation (the “Company”), to you (the
“Subscriber”) of shares of common stock, $0.01 par value (“Shares”) of the Company. Capitalized
terms not defined in these directions shall have the meanings given to them in the Subscription Agreement.

 

Subscription
Documents that are missing requested information or signatures will not be considered for acceptance unless and until such information
or signatures are provided. Subscribers that are entities may be required to furnish other or additional documentation evidencing
the authority to invest in the Company.

 

		1.	For
                                         Individual Subscribers (including IRAs).

 

		1.1.	Fill
                                         in the name of the Subscriber and the amount of the proposed Capital Contribution on
                                         page 5 of the Subscription Agreement.

 

		1.2.	Fill
                                         in the name of the Subscriber and the date (print name of Subscriber) on page 16 of the
                                         Subscription Agreement and sign in the blank provided. For individuals investing through
                                         an IRA, the name and signature of, and other information relating to, the Custodian/Trustee
                                         of the IRA is required on page 16.

 

		1.3.	All
                                         Subscribers must complete Schedule 1 and Schedule 2.

 

		1.4.	Complete
                                         Annex A by checking the appropriate box or boxes in Sections 1 through 6.

 

		1.5.	Sign
                                         Appendix 2 if you prefer to receive communications electronically.

 

		2.	For
                                         Institutional Subscribers.

 

		2.1.	Fill
                                         in the name of the Subscriber and the amount of the proposed Capital Contribution on
                                         page 4 of the Subscription Agreement.

 

		2.2.	Fill
                                         in the name of the Subscriber and the date (print name and title of authorized signatory)
                                         on page 16 of the Subscription Agreement and sign in the blank provided.

 

		2.3.	All
                                         Subscribers must complete Schedule 1 and Schedule 2.

 

		2.4.	Complete
                                         Annex B by checking the appropriate box or boxes and Appendix 1, if applicable.

 

		2.5.	Sign
                                         Appendix 2 if you prefer to receive communications electronically.

 

		3.	Required
                                         IRS Certifications – For all Subscribers: Institutional and Individual Investors.
                                         Fill in, sign (print name and title of authorized signatory, if applicable) and date
                                         an IRS Form W-9 (if you are a U.S. Subscriber). If you are a non-U.S. Subscriber, please
                                         provide a signed and completed appropriate Form W-8.

 

FOR ALL
SUBSCRIBERS

    	-ii-

    	 

    

 

		4.	Delivery
                                         of Subscription Documents. Please deliver two completed and original signed
                                         copies of the Subscription Documents and any required evidence of authorization (including
                                         any applicable power of attorney) to the Company at the following address:

 

Parkview
Capital Credit, Inc.

Two
Post Oak Center

1980 Post Oak Blvd, 15th Floor

Houston,
Texas 77056

Attention: Keith W. Smith, President and Chief Executive Officer

 

		5.	Acceptance
                                         of Subscription. If the Company accepts your subscription (in whole or in part),
                                         the Company will countersign the Subscription Agreement and deliver a copy of it at the
                                         address you provide in the Subscription Documents.

 

Please
note that the attached Subscription Documents contain a power of attorney which enables the Company to execute on behalf of the
Subscriber documents relating to the Subscriber’s investments in the Company.

 

		6.	Inquiries.
                                         If you have questions concerning any of the information requested, you should ask your
                                         attorney, accountant or other financial advisor. Inquiries regarding subscription procedures
                                         should be directed to Keith W. Smith at (713) 540-4545,

e-mail:  ksmith@parkviewadv.com.

 

FOR ALL
SUBSCRIBERS

    	-iii-

    	 

    

 

Subscription
Agreement

 

________________________________

Name
of Subscriber

 

$_________________

Amount
of Proposed Capital Contribution

 

Parkview
Capital Credit, Inc.

Two Post Oak Center

1980 Post Oak Blvd, 15th Floor

Houston,
Texas 77056

Attention: Keith W. Smith, President and Chief Executive Officer

 

Ladies and
Gentlemen:

 

The
undersigned subscriber (the “Subscriber”) understands that Parkview Capital Credit, Inc., is a Maryland corporation
(the “Company”) that has filed a registration statement on Form 10 (the “Registration Statement”)
with the Securities and Exchange Commission (the “SEC”) to register its authorized shares of common stock under
Section 12(g) of the Securities Exchange Act of 1934 (the “Exchange Act”) and, on a date following the date
the SEC declares the Registration Statement effective, intends to elect to be regulated as a business development company (“BDC”)
under the Investment Company Act of 1940, as amended (the “Investment Company Act”). Prior to and following
the Company’s election to be regulated as a BDC, the Company’s investment objective is to generate both current income
and capital appreciation primarily by making direct investments in lower middle-market companies in the form of subordinated debt
and, to a lesser extent, senior debt and minority equity investments. In furtherance of its investment objective, the Company
intends to provide customized debt and equity financing solutions to companies having annual earnings, before interest, taxes,
depreciation and amortization (“EBITDA”), of less than $25,000,000, and/or annual revenues of between $20,000,000
and $200,000,000 (“Lower Middle-Market Companies”), although the Company may opportunistically make investments
in larger or smaller companies. The Company expects that its investments will typically range in size from $3 million to $10 million,
although investment amounts may be smaller or larger than this range. In particular, the Company may make smaller investments
in broadly syndicated loans in the early stages of its development. Capitalized terms used in this agreement (the “Subscription
Agreement”) without definition will have the meanings ascribed to them in the Offering Documents (as defined below).
The distribution of this Subscription Agreement and the offer and sale of the Shares (as defined below) in certain jurisdiction
may be restricted by law. This Subscription Agreement does not constitute an offer to sell or the solicitation of an offer to
buy any Shares in any state or other jurisdiction where, or to or from any person to or from whom, such offer or solicitation
is unlawful or not authorized. The Shares are offered subject to the right of the Company to reject any subscription in whole
or in part.

 

FOR ALL SUBSCRIBERS

    	-4-

    	 

    

 

1.Subscription
for Shares.  The Subscriber hereby irrevocably subscribes for and agrees to purchase shares of common stock, par
value $0.01 (the “Shares”) through a capital contribution in the amount set forth above (the “Capital
Contribution”), subject to Section 9.13, on the terms and conditions described or appearing herein, in the Registration
Statement, in the Company’s Amended and Restated Articles of Incorporation, dated as of March 11, 2015 (the “Charter”),
in the Company’s Bylaws, dated as of March 11, 2015 (the “Bylaws”), in the Investment Advisory Agreement
between the Company and Parkview Advisors, LLC (the “Advisor”), dated as of March 10, 2015 (the “Advisory
Agreement”), in the Administration Agreement between the Company and Parkview Administrator, LLC (the “Administrator”),
dated as of March 10, 2015 (the “Administration Agreement”), in the Summary of Terms attached hereto (the “Summary
of Terms”), and, if subscription agreement is entered into after the effectiveness of the Registration Statement, all
periodic reports filed by the Company pursuant to Section 13(a) of the Securities Exchange Act of 1934, as amended, as any such
documents may be amended from time to time (all together, the “Offering Documents”). Subject to the terms of
this Subscription Agreement, the Subscriber’s obligation to pay for the Shares it is purchasing hereunder shall be unconditional,
complete and binding upon the completion of the Initial Closing (as defined below). 

 

2.Other
Subscription Agreements. The Subscriber acknowledges that the Company has entered into or expects to enter into separate
subscription agreements (the “Other Subscription Agreements” and, together with this Subscription Agreement,
the “Subscription Agreements”) with other subscribers (“Other Subscribers”), providing for
the sale to Other Subscribers of Shares in the Company. This Subscription Agreement and the Other Subscription Agreements are
separate agreements, and the sales of Shares to the Subscriber and the sales of Shares to Other Subscribers are separate sales.

 

3.Closing.
Subscriber shall be obligated to make the Capital Contribution as of the date that this Subscription Agreement (having been properly
and fully completed and signed by the Subscriber) has been accepted by the Company (the date of such acceptance, which shall be
indicated on the signature page hereto, being hereinafter referred to as the “Initial Closing Date”). All amounts
necessary to satisfy the Capital Contribution must be provided to the Company within six (6) months from the date of the Initial
Closing (the “Payment Period”). Each date on which funds are transferred to the Company during the Payment
Period to satisfy the Capital Contribution will be a “Closing”. At each Closing, except for the Initial Closing,
the Subscriber will provide an executed copy of the “Bring-Down Certificate” in the form attached hereto as
Schedule 3 to this Subscription Agreement. Upon acceptance of the Bring-Down Certificate, the Company will issue Shares to Subscriber
at a per share offering price of $10.00.

 

If
the full amount of the Capital Contribution has not been paid by the Subscriber to the Company within the Payment Period, all
remaining amounts shall be due upon expiration of the Payment Period. All Closings shall take place at the offices of the Company,
or at such other location as may be notified by the Company to the Subscriber in writing.

 

4.Representations,
Warranties and Covenants of the Subscriber.  The Subscriber represents, warrants and covenants to the Company,
as of (a) the date that this Subscription Agreement is signed by the Subscriber and on (b) the Initial Closing Date that:

 

4.1.Authorization
of Purchase and Compliance with Laws and Other Instruments. The signature on this Subscription Agreement is genuine, and the
persons signing this Subscription Agreement on the Subscriber’s behalf are duly authorized to sign and enter into this Subscription
Agreement on the Subscriber’s behalf.

 

FOR ALL SUBSCRIBERS

    	-5-

    	 

    

 

4.1.1.If
the Subscriber is an Entity: (a) it is duly organized, validly existing and in good standing under the laws of its jurisdiction
of organization; (b) the execution, delivery and performance by it of this Subscription Agreement are within its powers, have
been duly authorized by all necessary action on its behalf, require no action by or in respect of, or filing with, any governmental
body, agency or official, or any third party and do not and will not contravene, or constitute a default under, (i) any provision
of its certificate of incorporation, by-laws, limited liability company operating agreement, limited partnership agreement or
other comparable organizational documents or (ii) any provision of applicable law, rule or regulation or of any agreement, judgment,
injunction, order, decree or other instrument binding upon such Subscriber or any material agreement or other instrument to which
the Subscriber is a party or by which the Subscriber or any of its respective properties is bound, or any material license, permit
or franchise applicable to the Subscriber or its business, properties or rights other than such contraventions or defaults that
do not impair or otherwise affect the Subscriber’s ability to perform its obligations under this Subscription Agreement
or are not material to the Subscriber’s financial condition; (c) this Subscription Agreement constitutes the legal, valid
and binding obligations of the Subscriber enforceable against the Subscriber in accordance with their respective terms, subject
to any applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or similar laws now or hereafter in
effect relating to creditors’ rights generally or to general principles of equity; and (d) Subscriber not formed or recapitalized
for the specific purpose of acquiring any Shares in the Company. Neither the execution, delivery or performance of this Subscription
Agreement by the Subscriber, nor the consummation of the transactions contemplated hereby or thereby, will result in the creation
or imposition of any lien or encumbrance upon any of the assets or properties of such Subscriber.

 

4.1.2.If
the Subscriber is an Individual: (a) the execution, delivery and performance by the Subscriber of this Subscription Agreement
are within such person’s legal right and power, require no action by or in respect of, or filing with, any governmental
body, agency or official, or any third party, and do not and will not contravene, or constitute a default under, any provision
of applicable law, rule or regulation or of any agreement, judgment, injunction, order, decree or other instrument binding upon
such Subscriber or any material agreement or other instrument to which the Subscriber is a party or by which the Subscriber or
any of his respective properties is bound, other than contraventions or defaults that do not impair or otherwise affect the Subscriber’s
ability to perform its obligations under this Subscription Agreement or are not material to the Subscriber’s financial condition;
and (b) this Subscription Agreement constitutes the legal, valid and binding obligations of the Subscriber enforceable against
the Subscriber in accordance with their respective terms, subject to any applicable bankruptcy, insolvency, reorganization, fraudulent
conveyance, moratorium or similar laws now or hereafter in effect relating to creditors’ rights generally or to general
principles of equity. Neither the execution, delivery or performance of this Subscription Agreement by the Subscriber, nor the
consummation of the transactions contemplated hereby or thereby, will result in the creation or imposition of any lien or encumbrance
upon any of the assets or properties of such Subscriber. If the individual subscribing to the Company is investing assets on behalf
of an IRA, the individual who established the IRA has signed the signature page of this Subscription Agreement and confirms that
such individual (i) has directed the custodian or trustee of the IRA to execute the acknowledgement on the signature page and
(ii) has signed below to indicate that he or she has reviewed, directed and certifies to the accuracy of the representations and
warranties made herein with respect to the IRA and the individual Subscriber.

 

4.2.No
Legal Action Pending, etc. There is no legal action, suit, arbitration or other legal, administrative or other governmental
investigation, inquiry or proceeding (whether federal, state, local, or foreign) pending or, to the knowledge of the Subscriber,
threatened against the Subscriber that, if adversely determined, is reasonably likely to impair or otherwise affect the Subscriber’s
ability to perform its obligations under this Subscription Agreement or is reasonably likely to have a material adverse effect
on the Subscriber’s financial condition.

 

FOR ALL SUBSCRIBERS

    	-6-

    	 

    

 

4.3.Acknowledgment
of Risks; Access to Information. The Subscriber herby acknowledges it has been provided and has carefully reviewed the Offering
Documents. The Subscriber understands the risks of, and other considerations relating to, the purchase of Shares, including, without
limitation, the information appearing in the Registration Statement under the headings “Item 1: Business—Regulation
as a Business Development Company,” “Item 1: Business—Certain U.S. Federal Income Tax Consequences,” “Item
1A: Risk Factors,” “Item 7: Certain Relationships and Related Transactions, and Director Independence” and “Item
11: Description of Registrant’s Securities to be Registered” and the information appearing in the Summary of Terms.
Subscriber also has been afforded the opportunity to obtain any additional information necessary to verify the accuracy of the
information in the Offering Documents to the extent the Company possesses such information or can acquire it without unreasonable
effort or expense. The Company has answered all of the Subscriber’s inquiries, if any, concerning the business to be conducted
by the Company, the financial condition and capital of the Company, the qualification and experience of the Company, the Advisor,
the Administrator and their Affiliates, and the terms and conditions of the offering and other matters pertaining to this investment.
In deciding to acquire Shares, the Subscriber has not relied upon any information or representation, whether written or oral,
from the Company or any of its officers, employees, counsel, representatives or agents or any other person, other than information
contained in the Offering Documents and in the answers provided by the Company to such inquiries.

 

4.4.Evaluation
and Ability to Bear Risks. The Subscriber’s decision to invest in the Company was made by the Subscriber as person(s)
who (a) are authorized to make such investment decisions, and (b) have relied on its or their own tax, legal and financial advisers
with regard to all matters relating to the Subscriber’s investment in the Company (including federal, state, and local tax
matters and tax matters relating to non-United States jurisdictions) and not on any advice or recommendation of the Company, Advisor,
Administrator or any of its Affiliates, notwithstanding anything in Section 4.3 to the contrary. The Subscriber’s prior
investment experience with other investment opportunities and its general knowledge about the management, proposed operations
and prospects of the Company enable the Subscriber, together with the Subscriber’s advisers, to make an informed decision
with respect to the merits and risks of an investment in the Company. After all necessary advice and analysis, the Subscriber
has evaluated the risks of investing in the Shares and has determined that the Shares are a suitable investment for the Subscriber.
The Subscriber has adequate means for providing for its current needs and personal or other contingencies and has no need for
liquidity with regards to its investment in the Shares, and is able to bear the economic risk of its acquisition of the Shares,
including a complete loss of its investment in the Company. The Subscriber understands that the Company does not now know what
the capital to be contributed to the Company will be invested in or the total amount of capital the Company will have available
to invest, and that the Company and Advisor will have complete control over the investments made by the Company. The Subscriber
has not reproduced, duplicated or delivered the Offering Documents to any other person, except professional advisors to the Subscriber
or as permitted in writing by the Company.

 

4.5.Purchase
of an Investment. The Subscriber represents and warrants that it is acquiring the Shares for investment purposes only and
not with a view to the resale or distribution of all or any part of such Shares, and the Subscriber has no present intention,
agreement or arrangement to divide its participation with others or to sell, assign, transfer or otherwise dispose of, directly
or indirectly, all or any part of such Shares. Further, Subscriber agrees that if it determines to transfer or assign any of its
Shares of the Company pursuant to the provisions hereof, it will cause its proposed transferee to agree to the transfer restrictions
and make the representations set forth herein. The Subscriber understands that it must bear the economic risk of its investment
in the Shares for an indefinite period of time, because, among other reasons, the offering and sale of the Shares are intended
to be exempt from registration under the Securities Act of 1933, as amended, (the “Securities Act”), applicable
state securities laws within the United States and securities laws of any non-U.S. jurisdictions, by virtue of the private placement
exemption from registration provided in Section 4(2) of the Securities Act, and therefore any Shares acquired by the Subscriber
may not be sold, offered for sale, exchanged, transferred, assigned, pledged, hypothecated or otherwise disposed of (each, a “Transfer”)
in any manner that would require the Company to register the Shares under the Securities Act, under any applicable state securities
laws within the United States or the securities laws of any non-U.S. jurisdiction. The Subscriber understands that the Company
requires each investor in the Company to be an “accredited investor” as defined in Rule 501(a) of Regulation D of
the Securities Act (“Accredited Investor”) and the Subscriber represents and warrants that it is an Accredited
Investor.

 

FOR ALL SUBSCRIBERS

    	-7-

    	 

    

 

The
Subscriber was offered the Shares through private negotiations, not through any general solicitation or advertising. Other than
as set forth herein and in the Offering Documents, the Subscriber is not relying upon any information (including, without limitation,
any advertisement, article, notice or other communication published in any newspaper, magazine, website or similar media or broadcast
over television or radio, and any seminars or meetings whose attendees have been invited by any general solicitation or advertising)
provided by the Company, the Advisor, any Affiliate of the foregoing or any agent of them, written or otherwise, in determining
to invest in the Company.

 

The
Subscriber understands that the Company will not be registered as an investment company under the Investment Company Act of 1940,
as amended, (the “Investment Company Act”) or regulated thereunder in reliance upon an exemption from registration
provided by Section 3(c)(1) thereunder, until such time that the Company elects to be regulated as a BDC under the Investment
Company Act. Shares acquired by the Subscriber may not be Transferred in any manner that would require the Company to register
as an investment company under the Investment Company Act. The Subscriber understands that the Company intends to file an election
to be treated as a regulated investment company within the meaning of Section 851 of the U.S. Internal Revenue Code of 1986, as
amended (the “Code”), for U.S. federal income tax purposes; pursuant to those elections, the Subscriber will
be required to furnish certain information to the Company as required under Treasury Regulation § 1.852-6(a) and other regulations.
If the Subscriber is unable or refuses to provide such information directly to the Company, the Subscriber understands that it
will be required to include additional information on its income tax return as provided in Treasury Regulation § 1.852-7.

 

The
Subscriber represents and warrants that the Subscriber: (i) is not registered as an investment company under the Investment Company
Act; (ii) has not elected to be regulated as a business development company under the Investment Company Act; and (iii) either
(A) is not relying on the exception from the definition of “investment company” under the Investment Company Act set
forth in Section 3(c)(1) or 3(c)(7) thereunder or (B) is otherwise permitted to acquire and hold more than 3% of the outstanding
voting securities of a business development company.

 

4.6.Jurisdiction
Governing Subscription.

 

4.6.1.The
Subscriber was offered Shares in the jurisdiction listed as the Subscriber’s address on Schedule 1 or previously provided
to the Company and intends that the securities law of that jurisdiction govern the Subscriber’s subscription.

 

FOR ALL SUBSCRIBERS

    	-8-

    	 

    

 

4.6.2.If
the Subscriber is not a resident of the United States, at the time the Subscriber undertook to subscribe for the Shares, the Subscriber
was outside the United States and is outside the United States as of the date of the execution and delivery of this Agreement.

 

4.6.3.If
the Subscriber is not a resident of the United States, the Subscriber is purchasing the Shares for its own account and not on
behalf of any U.S. person, and the sale has not been pre-arranged with a purchaser in the United States.

 

4.7.Reserved.

 

4.8.Involuntary
Sale of Shares. The Subscriber understands and agrees that the Company may cause the Subscriber involuntarily to sell all
or a portion of its Shares in accordance with the Offering Documents.

 

4.9.Correctness
of Information. The Subscriber represents and warrants that the information it has provided in this Subscription Agreement
and any documents attached hereto or provided in connection with this Subscription Agreement (collectively “Attachments”)
(which Attachments are incorporated in this Subscription Agreement by reference, and which constitute representations and warranties
to the Company, as if expressly set forth herein), and in any U.S. Internal Revenue Service or other tax form delivered to the
Company, is true, accurate and complete and may be relied upon by the Company for any purpose, including the establishment of
Subscriber-related facts underlying claims of exemption from the registration provisions of federal, state and non-U.S. securities
laws, including the Securities Act and the Investment Company Act. The Subscriber acknowledges that the Company is relying on
such information in connection with (a) the Subscriber becoming a shareholder of the Company, (b) not registering the offer and
sale of the Shares under the Securities Act or any state or foreign securities laws, (c) not registering the Company under the
Investment Company Act, (d) avoiding violations of the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
and Code Section 4975 (e.g. prohibited transactions involving retirement accounts and other employee benefit plans – see
Section 4.11herein) and other comparable laws applicable to employee benefit plans not subject to ERISA, and (e) the management
of the Company’s business. If at any time during the term of the Company any of the representations and warranties contained
in this Subscription Agreement (including the Annexes, Schedules and Exhibits attached hereto) shall cease to be true, the Subscriber
will promptly notify the Company in writing.

 

4.10.USA
PATRIOT Act Confirmation.

 

4.10.1.If
the Subscriber is an individual, the Subscriber represents and warrants that the Subscriber (a) is not, and is not acting
on behalf of any other person in connection with this subscription that is (i) an individual, entity or organization named on
the List of Specially Designated Nationals and Blocked Persons maintained by the U.S. Office of Foreign Assets Control (OFAC)
(the “SDN List”) or in the Annex to Executive Order No. 13224 (2001) issued by the President of the United
States (Executive Order Blocking Property and Prohibiting Transactions with Persons who Commit, Threaten to Commit or Support
Terrorism); (ii) a non-U.S. shell bank1 or providing banking services indirectly to a non-U.S. shell bank; (iii)
a senior non-U.S. political figure or an immediate family member or close associate2 of such figure; or (iv) otherwise
prohibited from investing in the Company pursuant to applicable U.S. anti-money laundering, anti-terrorist and asset control laws,
regulations, rules or orders (categories (i) through (iv) together, a “Prohibited Investor”) and (b) does not
control, is not controlled by or under common control with any such Prohibited Investor.

 

 

1
A non-U.S. shell bank is a non-U.S. bank without a physical presence in any country.

 

2
A “close associate” is a person who is widely and publicly known to maintain an unusually close relationship
with the senior non-US political figure, including a person who is in a position to conduct substantial financial transactions
on behalf of such figure.

 

FOR ALL SUBSCRIBERS

    	-9-

    	 

    

 

4.10.2.If
Subscriber is an entity and is NOT acting on behalf of one or more clients, Subscriber represents and warrants that (a)
neither it nor its authorized contact persons are Prohibited Investors and (b) if it is a financial institution subject to the
anti-money laundering (“AML”) program requirements of the USA PATRIOT Act, it has adopted and implemented AML
programs required by the USA PATRIOT Act and the regulations promulgated thereunder.

 

4.10.3.If
Subscriber is an entity and is acting on behalf of one or more clients in connection with this subscription, Subscriber
represents and warrants that Subscriber is a financial institution subject to the anti-money laundering program requirements of
the USA PATRIOT Act, and Subscriber further represents that it has (a) implemented a customer identification program as required
under section 326 of the USA PATRIOT Act and the regulations promulgated thereunder; (b) conducted the required due diligence
on client(s) on whose behalf the Subscriber is acting; (c) determined that such client(s) are NOT Prohibited Investors as defined
in Section 4.10.1 hereunder; and (d) retained and will continue to retain evidence of any such identities, any such source of
funds or any such diligence as required by the USA PATRIOT Act and related regulations.

 

4.10.4.The
Subscriber represents and warrants that Subscriber does not know or have any reason to suspect that (a) the monies used to fund
the Subscriber’s acquisition of the Shares have been or will be derived from or related to any illegal activities, including
but not limited to, money laundering activities and (b) the proceeds from the Subscriber’s acquisition of the Shares will
be used to finance any illegal activities.

 

4.10.5.The
Subscriber agrees to provide the Company, promptly upon request, all information that the Company reasonably deems necessary or
appropriate to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules and
orders.

 

4.10.6.The
Subscriber consents to the disclosure to U.S. regulators and law enforcement authorities by the Company and its affiliates and
agents of such information about the Subscriber as the Company reasonably deems necessary or appropriate to allow the Company
to comply with applicable U.S. anti-money laundering, anti-terrorist and asset control laws, regulations, rules and orders.

 

4.10.7.The
Subscriber acknowledges that if, following Subscriber’s investment in the Company, the Company in good faith believes that
the Subscriber is a Prohibited Investor or otherwise engaged in suspicious activity, or if Subscriber refuses to provide promptly
information that the Company requests, the Company has the right or may be obligated to prohibit additional investments, segregate
the assets constituting the investment in accordance with applicable regulations or immediately require the Subscriber to withdraw
from the Company. If the Subscriber is required to completely withdraw from the Company, the Subscriber shall bear any and all
fees and expenses incurred by the Company to effect such withdrawal. The Subscriber further acknowledges that, to the fullest
extent permitted by law, the Subscriber will have no claim against the Company or any of its affiliates or agents for any form
of damages as a result of any of the foregoing actions.

 

4.10.8.The
Subscriber hereby understands that to help the United States government fight the funding of terrorism and money laundering activities,
federal law requires all financial institutions to obtain, verify and record information that identifies each Subscriber who opens
an account, all as set forth on Schedule 1 and, if applicable, Appendix 1. The responses provided on such Schedule
and, if applicable, such Appendix, are deemed to be made in this Subscription Agreement as if expressly set forth herein.

 

FOR ALL SUBSCRIBERS

    	-10-

    	 

    

 

4.11.Subscriptions
from Employee Benefit Plans. If all or part of the funds that the Subscriber is using or will use to fund its Capital Contribution
are assets of an employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title I of ERISA or a plan described in
Section 4975(e)(1) of the Code, or any entity whose underlying assets include plan assets for purposes of ERISA or the Code by
reason of a plan’s investment in the entity:

 

4.11.1.the
funds so constituting plan assets have been identified in writing to the Company;

 

4.11.2.the
Subscriber’s proposed purchase of the Shares is permissible under the documents governing the investment of such plan assets;

 

4.11.3.in
making the proposed purchase of the Shares, the Subscriber is aware of and has taken into consideration the diversification requirements
of Section 404(a)(1) of ERISA or other applicable law, if any, and the decision to invest plan assets in the Company is consistent
with such provisions; and

 

4.11.4.the
Subscriber has concluded that the proposed purchase of the Shares is consistent with the applicable fiduciary responsibilities
under ERISA and other applicable law, if any.

 

If
the investment in Shares is being made on behalf of a plan established and maintained by a state, its political subdivisions,
or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees or if the investment
in the Shares is being made on behalf of an employee benefit plan maintained outside of the United States primarily for the benefit
of persons substantially all of whom are nonresident aliens (as described in Section 4(b)(4) of ERISA) :

 

4.11.5.there
is no provision in the instruments governing such plan or any federal, state, local or foreign law, rule, regulation or constitutional
provision applicable to the plan that could in any respect affect the operation of the Company, including operations of the Advisor
as contemplated by the Advisory Agreement, or prohibit any action contemplated by the operational documents and related disclosure
of the Company, including, without limitation, the investments which may be made pursuant to the Company’s investment strategies,
the concentration of investments for the Company and the payment by the plan of incentive or other fees; and

 

4.11.6.the
plan’s investment in the Company will not conflict with or violate the instruments governing such plan or any federal, state,
local or foreign law, rule, regulation or constitutional provision applicable to the plan.

 

5.Bankruptcy,
Pending Lawsuits, Outstanding Judgments. The Subscriber represents and warrants that the Subscriber has never filed for
or been involved as a debtor in bankruptcy proceedings and there are no suits pending or judgments outstanding against it which,
in one case or in the aggregate, could impair its ability to make the Capital Contribution to the Company.

 

FOR ALL SUBSCRIBERS

    	-11-

    	 

    

 

6.Power
of Attorney.

 

6.1.Appointment
of Company as Attorney-in-fact and Agent. The Subscriber, by its execution hereof, hereby irrevocably makes, constitutes and
appoints the Company as its true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution for
the Subscriber and in the Subscriber’s name, place and stead, in any and all capacities, to complete blanks in the Subscription
Documents as directed by the Subscriber and to make, execute, sign, acknowledge, swear to, record and file:

 

6.1.1.any
and all filings required to be made by the Subscriber under the Securities Act of 1934 (the “Exchange Act”)
with respect to any of the Company’s securities which may be deemed to be beneficially owned by the Subscriber under the
Exchange Act;

 

6.1.2.all
certificates and other instruments deemed advisable by the Company in order for the Company to enter into any borrowing or pledging
arrangement;

 

6.1.3.all
certificates and other instruments deemed advisable by the Company to comply with the provisions of this Subscription Agreement
and applicable law or to permit the Company to become or to continue as a business development company; and

 

6.1.4.all
other instruments or papers not inconsistent with the terms of this Subscription Agreement which may be required by law to be
filed on behalf of the Company.

 

With
respect to the Subscriber and the Company, the foregoing power of attorney:

 

6.1.5.is
coupled with an interest and shall be irrevocable;

 

6.1.6.may
be exercised by the Company either by signing separately as attorney-in-fact for the Subscriber or, after listing all of the Subscribers
executing an instrument, by a single signature of the Company acting as attorney-in-fact for all of them;

 

6.1.7.shall
not be affected by the subsequent death, disability, incompetency, termination, bankruptcy, insolvency or dissolution of the Subscriber
and shall survive the assignment by the Subscriber of the whole or any fraction of its Shares, except where the assignment is
of the Subscriber’s entire Shares and the assignee thereof, with the consent of the Company, provided, however, this power
of attorney shall survive the delivery of such assignment for the sole purpose of enabling any such attorney-in-fact to effect
such substitution; and

 

6.1.8.may
not be used by the Company in any manner that is inconsistent with the terms of this Subscription Agreement and any other written
agreement between the Company and the Subscriber.

 

6.2.Authorization
to Execute Instructions. The Subscriber hereby authorizes and instructs the Company to accept and execute any instructions
in respect of the Shares to which this Subscription Agreement relates given by the Subscriber in written form (including email)
or by facsimile. If instructions are given by the Subscriber by facsimile, the Subscriber undertakes to send the original letter
of instructions to the Company and agrees to keep the Company indemnified against any loss of any nature whatsoever arising to
any of them as a result of any of them acting upon facsimile instructions. The Company may rely conclusively upon and shall incur
no liability in respect of any action taken upon any notice, consent, request, instructions or other instrument believed in good
faith to be genuine or to be signed by properly authorized persons.

 

FOR ALL SUBSCRIBERS

    	-12-

    	 

    

 

7.Trustee,
Agent, Representative or Nominee. If the Subscriber is acting as trustee, agent, representative or nominee for
an underlying investor (a “Beneficial Owner”), the Subscriber understands and acknowledges that the representations,
warranties and agreements made herein are made by the Subscriber (A) with respect to the Subscriber and (B) with respect to the
Beneficial Owner of the Shares subscribed for hereby. The Subscriber also agrees to indemnify the Company, the Advisor, the Administrator,
their respective officers, directors, members, employees, agents and shareholders, and each other person, if any, who controls
or is controlled by any of the foregoing, within the meaning of Section 15 of the Securities Act, for any and all costs,
fees and expenses (including legal fees and disbursements) in connection with any damages resulting from the Subscriber’s
or the Beneficial Owner’s misrepresentation or misstatement contained herein, or the assertion of the Subscriber’s
lack of proper authorization from the Beneficial Owner of the Shares subscribed for hereby to enter into this Agreement or perform
the obligations hereof or thereof.

 

8.Pass-Through
Entity Representations. If the Subscriber is a partnership, limited liability company, grantor trust or Subchapter S corporation
under the Code, at no time during the term of the Company will “substantially all” (within the meaning of Treasury
Regulation Section 1.7704-1(h)(3)) of the value of any beneficial owner’s interest in the Subscriber (directly or indirectly)
be attributable to the Subscriber’s ownership of the Shares.

 

9.Miscellaneous
Provisions.

 

9.1.Amendments
and Waivers. This Subscription Agreement may be amended only with the written consent of the Subscriber and the Company. The
observance of any provision of this Subscription Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively) by the party hereto that is entitled to the benefit thereof, but no such waiver shall be effective
unless set forth in a written instrument duly executed by or on behalf of such party waiving such term or condition. No waiver
by any party hereto of any provision of this Subscription Agreement in any one or more instances shall be deemed to be or construed
as a waiver of the same or other provision of this Subscription Agreement on any future occasion. No delay or omission in the
exercise of any power, remedy or right herein provided or otherwise available to any party hereto shall impair or affect the right
of such party thereafter to exercise the same. Any extension of time or other indulgence granted to any party hereto shall not
otherwise alter or affect any power, remedy or right with respect to the other party hereto, or the obligations of the party hereto
to whom such extension or indulgence is granted. All remedies, either under this Subscription Agreement or by law or otherwise
afforded, shall be cumulative and not alternative.

 

9.2.Survival
of Representations and Warranties; Indemnity. All representations and warranties contained herein or in any Attachments hereto
made by the Subscriber shall survive indefinitely following the execution and delivery of this Subscription Agreement, and the
issue and sale of Shares. The Subscriber and its fiduciaries, if any, shall and hereby do agree to indemnify and hold each the
Company, the Advisor, the Administrator and their respective controlling persons, officers, directors, members, partners, shareholders,
employees, affiliates and each other person, if any, who controls or is controlled by any of the foregoing, within the meaning
of Section 15 of the Securities Act, free and harmless from and in respect of any and all claims, actions, demands, causes of
action, liabilities, losses and expenses whatsoever (including, but not limited to, legal fees and disbursements and any and all
other expenses whatsoever reasonably incurred in investigating, preparing for or defending against any litigation, arbitration
proceeding, or other action or proceeding, commenced or threatened, or any claim whatsoever) arising from the breach or alleged
breach of any of the representations, warranties or covenants made in this Subscription Agreement or in any Attachment hereto
or in any other document furnished by the Subscriber to any of the foregoing in connection with this transaction, or any action
for securities law violation instituted by the Subscriber which is finally resolved by judgment against the Subscriber.

 

FOR ALL SUBSCRIBERS

    	-13-

    	 

    

 

9.3.Unrelated
Business Taxable Income. The Subscriber understands that if it (or, if the Subscriber is treated as a partnership or a disregarded
entity for U.S. federal income tax purposes, any beneficial owner thereof) is otherwise exempt from tax, an investment in the
Company may produce income that constitutes “unrelated business taxable income” for federal income tax purposes, including
by reason of the “debt-financed property” rules of the Code.

 

9.4.Effectively
Connected Income. The Subscriber understands that a direct investment in the Company by a foreign Subscriber will produce
income that is effectively connected to a U.S. trade or business for U.S. federal income tax purposes.

 

9.5.Additional
Information. The Subscriber agrees to furnish additional information with regard to the Subscriber’s suitability as
a prospective Subscriber, should the Company, Advisor or Administrator reasonably request such information, including documentation
as the Company, Advisor or Administrator may reasonably request to assist it in ascertaining compliance with Securities Laws,
FINRA, and PATRIOT Act compliance.

 

9.6.Successors
and Assigns. This Subscription Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective
successors of the parties hereto. However, the Subscriber shall not transfer this Subscription Agreement or any of its rights
in, to or under this Subscription Agreement and any attempted transfer shall be void and without force or effect.

 

9.7.Notices.
All notices, requests and other communications hereunder must be in writing and shall be deemed to have been duly given only if
delivered (a) in person, (b) by registered or certified mail (c) by private courier (including a nationally recognized overnight
courier), (d) by facsimile or (e) by e-mail. All notices to the Company shall be delivered to Parkview Capital Credit, Inc., c/o
Parkview Advisors, LLC, Two Post Oak Center, 19980 Post Oak Boulevard, 15th Floor, Houston, Texas 77056, Attention:
Keith W. Smith, President and Chief Executive Officer, facsimile number (800) 859-2337, with a copy to Owen Pinkerton, Esq., Morris,
Manning and Martin, LLP, 1401 Eye Street, N.W., Washington, DC 20005, facsimile number (202) 408-5146, which copy shall not constitute
notice. All notices to the Subscriber shall be delivered to the address, facsimile number and email address provided by the Subscriber
in Section 5 of Schedule 1 attached hereto. The Subscriber may designate a new address for notices by giving written notice
to that effect to the Company. The Company may designate a new address for notices by giving written notice to that effect to
the Subscriber. A notice given in accordance with the foregoing clauses (a), (b) and (c) shall be deemed to have been effectively
given three business days after such notice is mailed by registered or certified mail, return receipt requested, or one business
day after such notice is sent by overnight delivery service or other one-day provider, to the proper address, or at the time delivered
when delivered in person or by private courier. A notice given by facsimile or email shall be deemed to have been effectively
given when sent unless the sender receives a message of “error in transmission,” provided confirmatory notice is sent
by first class mail, postage prepaid or receipt is confirmed by an officer or other authorized representative of the recipient
by answerback or other written means.

 

FOR ALL SUBSCRIBERS

    	-14-

    	 

    

 

9.8.Applicable
Law. Subject to Section 4.6, this Subscription Agreement shall be construed in accordance with and governed by the internal
substantive laws (without giving effect to the choice of law or conflict of law rules or provisions that would cause the application
of the laws of any jurisdiction other than Maryland) of the State of Maryland, regardless of whether it has been executed by the
Subscriber outside of the United States.

 

9.9.Reserved.

 

9.10.Headings.
The headings of the sections of this Subscription Agreement are inserted for convenience only and shall not be deemed to constitute
a part hereof.

 

9.11.Severability.
In the event any provision of this Subscription Agreement is determined to be invalid or unenforceable, such provision shall be
deemed severed from the remainder of this Subscription Agreement and replaced with a valid and enforceable provision as similar
in intent as reasonably possible to the provision so severed, and shall not cause the invalidity or unenforceability of the remainder
of this Subscription Agreement.

 

9.12.Entire
Agreement. This Subscription Agreement, together with its Attachments (which Attachments are incorporated in this Subscription
Agreement by reference), constitute the entire agreement between the parties hereto with respect to the subject matter hereof,
and any other prior or contemporaneous written or oral agreements, statements or assurances with respect to this subject matter
are hereby rescinded and terminated.

 

9.13.Irrevocability
and Acceptance. This Subscription Agreement is and shall be irrevocable by the undersigned but will not be binding on the
Company unless and until it is agreed to and accepted by the Company. The Company in its sole discretion may accept this Subscription
Agreement with respect to the Capital Contribution in whole or in part. Acceptance will be given either by delivery of this Subscription
Agreement to the Subscriber with the form of acceptance executed by the Company or by such execution and written notice thereof
to the Subscriber. The Subscriber agrees that by its execution, or execution on its behalf, of this Subscription Agreement and
upon acceptance hereof by the Company, it agrees to be bound by terms of this Subscription Agreement and shall become a shareholder
of the Company. This Subscription Agreement will expire if it is not accepted by the Company on or prior to six months
from the date Subscriber has executed this Subscription Agreement.

 

9.14.Counterparts;
Facsimile Signatures. This Subscription Agreement may be executed in several counterparts, each of which shall be deemed an
original but all of which shall constitute one and the same instrument. Facsimile counterpart signatures to this Subscription
Agreement shall be acceptable and binding.

 

FOR ALL SUBSCRIBERS

    	-15-

    	 

    

 

Signature
Page to Subscription Agreement

for Parkview Capital Credit, Inc.

 

	INDIVIDUAL
    SUBSCRIBER/IRA:*	 	INSTITUTIONAL
    SUBSCRIBER:
	 	 	 
	Name
    of Individual Subscriber	 	Name
    of Institutional Subscriber
	Signature:	 	 	By:	 
	Print
    Name: 	 	 	Print
    Name: 	 
	Date:	 	 	Title:	 
	 	 	 	Date:	 

 

	*If
    IRA, the Subscriber must  be identified as: (name of the IRA Custodian) for the benefit of (the name of the individual)
    and must also be acknowledged by custodian or trustee below.  For an IRA, the individual signs above and the
    IRA Custodian or Trustee signs below.	 
	 

                                                                                                 Acknowledgement
                                         by IRA Custodian or Trustee with respect to Investment for an IRA:

         

        By
        signing below, the undersigned custodian or trustee of the IRA for the benefit of the Individual Subscriber named above
        (the “Client IRA”) acknowledges that investment in Parkview Capital Credit, Inc. is being made through
        the Client IRA from the below referenced account and certifies that the Client IRA has directed the custodian or trustee
        to sign this Subscription Agreement on behalf of the IRA. The trustee or custodian’s contact, account reference
        number and Tax ID are set forth below.

 

	Name
    of IRA Holder:	__________________________________________
	Name
    and Address of Custodian:	__________________________________________
	Contact
    Individual:	__________________________________________
	IRA
    Account or Other Reference Number:	__________________________________________
	Trustee/Custodian’s
    Tax I.D. Number:	__________________________________________
	Acknowledgement
    by Custodian:	__________________________________________

 

	 	By:
	 
	 	Name:

        
	 
	 	Title:	 

  

ALL
SUBSCRIBERS, PLEASE FOLLOW THESE INSTRUCTIONS:

 

  ALL
SUBSCRIBERS: If you do not complete the applicable Schedule(s) or Annexes attached hereto, your Subscription   Agreement
shall be deemed incomplete and will be returned to you.

 

  INDIVIDUAL
SUBSCRIBERS: Please complete Schedules 1 and 2 and Annex A attached hereto.

 

  INSTITUTIONAL
SUBSCRIBERS: Please complete Schedules 1 and 2 and Annex B attached hereto.

 

 

THIS
SUBSCRIPTION AGREEMENT SHALL NOT BE EFFECTIVE UNLESS AND UNTIL IT IS COUNTERSIGNED BY THE COMPANY.

 

FOR ALL SUBSCRIBERS

    	-16-

    	 

    

 

Signature
Page of Parkview Capital Credit, Inc.

 

Agreed
to and Accepted by

PARKVIEW
CAPITAL CREDIT, INC.

  

	as
    of ______________________________, 201___	$ ______________________________
	 	Amount
    of Capital Contribution Accepted

 

	By:	 	 
	Print
    Name: 	 	 
	Title:	 	 

 

FOR ALL SUBSCRIBERS

    	-17-

    	 

    

 

Schedule
1 to Subscription Agreement: 

Subscriber Information

(For All Subscribers)

 

Instructions:
Please complete the applicable parts of this Schedule.

 

Name
and Address (please print)

 

_____________________________________________________________________________

Name (Print both names if joint registration)

 

______________________________________________________________________________

Street Address/Address of Principal Office

 

______________________________________________________________________________

	City	State	Zip
    Code	 

 

(____)______________________

Telephone number

 

1.Investment.
Please indicate below the amount of the Subscriber’s proposed Capital Contribution in Parkview Capital Credit, Inc.

 

Amount
of proposed Capital Contribution: $________________

 

Payment
made by wire direct to:

 

	 	Bank: 	[_________________________________________]
	 	ABA
    #:	[_________________________________________]
	 	Account
    Name:	[_________________________________________]
	 	Account
    #:	[_________________________________________]
	 	Reference:	[_________________________________________]

 

2.Primary
Contact Person for this Account.

 

Name:
_______________________________________________

 

Address: _____________________________________________

 

Telephone
Number: _____________________________________

 

Facsimile
Number: ______________________________________

 

E-mail
Address: ________________________________________

 

SCHEDULE
2 – FOR ALL SUBSCRIBERS

    	-18-

    	 

    

 

3. Persons
authorized to act for the Subscriber (i.e., authorized to invest in funds, direct payment of funds, etc.). In
addition to the persons authorized by the power of attorney contained in Section 6 of the Subscription Agreement, the
Subscriber hereby authorizes the person(s) noted below to act individually on behalf of this account unless otherwise noted.
Please provide name, specimen signatures and titles in the form that such person would sign documents on behalf of this
account, and telephone numbers. Without limiting the power of attorney contained in Section 6 of the Subscription Agreement,
if there are circumstances under which more than one signature is required to take action with respect to this account,
please state such circumstances. Requests to change the identity of persons authorized to act on behalf of a Subscriber which
is a corporation, partnership, trust, estate or other fiduciary must be accompanied by appropriate documentation establishing
the authority of the person seeking to act on behalf of the Subscriber. The Subscriber agrees that the Company may rely on
the information provided herein until it receives written notice of superseding instructions.

  

	 	 	 	 
	 	Signature	 	Signature
	 	 	 	 
	 	 	 	 
	 	Name
    (and title, if applicable)	 	Name
    (and title, if applicable)
	 	 	 	 
	 	 	 	 
	 	Telephone
    number	 	Telephone
    number
	 	 	 	 
	 	 	 	 
	 	Signature	 	Signature
	 	 	 	 
	 	 	 	 
	 	Name
    (and title, if applicable)	 	Name
    (and title, if applicable)
	 	 	 	 
	 	 	 	 
	 	Telephone
    number	 	Telephone
    number

 

Special
Circumstances (e.g., if more than one signature is required, explain the circumstances and the number or identity of authorized
signatories):

 

 

 

 

 

 

 

 

 

 

 

 

If
no special circumstances are indicated above, any single authorized signatory indicated above or on the signature page
to the Subscription Agreement will be deemed to have authority to act on behalf of the investor.

 

SCHEDULE
2 – FOR ALL SUBSCRIBERS

    	-19-

    	 

    

 

4.Tax
Information:

 

4.1.Please
provide your Taxpayer I.D. Number/Social Security Number (as applicable):

 

Tax
ID/SSN: ________________________________________

 

For
Joint Accounts, please provide Taxpayer I.D. or Social Security Number (as applicable) for each Joint Account
Holder.

 

	 	Name: 	 	 	Tax
    ID: 	 
	 	Name: 	 	 	Tax
    ID: 	 

 

4.2.The
Subscriber is a/an (please check the appropriate box):

 

☐
Individual

☐
Corporation 

☐
Limited Partnership

☐
General Partnership 

☐
Limited Liability Company

☐
S-Corporation

☐
Charitable Remainder Trust

☐
Group Trust (as defined in the Limited Partnership Agreement)

☐
Tax-Exempt Endowment

☐
Private Tax-Exempt Foundation (as defined in §509 of the Internal Revenue Code)

☐
Employee Benefit Plan (self-directed)

☐
Employee Benefit Plan (trustee directed)

☐
Fund of Funds

		☐
    Other Tax Exempt Organization (i.e., exempt from income taxation under §501 of the Internal Revenue

Code) _____________________________

☐
Other _____________________________

 

4.3.Tax
year ends: ____________________

 

4.4.State
(if applicable) and country of residence for tax purposes: ____________________

 

4.5.For
a domestic self-directed employee benefit plan (e.g. Keogh or self-directed 401k):

 

Keogh
or Plan Account Number _______________

 

Tax
year ends ____________________

 

Plan
or Custodian Taxpayer I.D. Number ______________________________

 

SCHEDULE
2 – FOR ALL SUBSCRIBERS

    	-20-

    	 

    

 

5.Statements
and Other Correspondence. Statements and other correspondence should be sent to (give name, address, fax number and email
address, if available):

 

	 	 	Primary
    Contact	Secondary
    Contact
	 	Name	_____________________________	_____________________________
	 	Company

    (if applicable)	_____________________________	_____________________________
	 	Title

    (if applicable)	_____________________________	_____________________________
	 	Address	_____________________________	_____________________________
	 	 	_____________________________ 	_____________________________
	 	Phone	_____________________________ 	_____________________________
	 	Fax	_____________________________ 	_____________________________
	 	E-mail	_____________________________ 	_____________________________

 

6.Distributions.
Please indicate where distributions should be sent (please check and complete one):

 

	For
    All Subscribers	☐ Send
check to:	☐ Wire
distributions to:
	Bank
    Name:	 _____________________________	 _____________________________
	Bank
    Address:	 _____________________________	 _____________________________
	Bank
    ABA #:	 _____________________________	 _____________________________
	Account
    Number:	 _____________________________	 _____________________________
	Account
    Name:	 _____________________________	 _____________________________
	Reference:	 _____________________________	 _____________________________
	Contact
    Name:	 _____________________________	 _____________________________
	Phone:	 _____________________________	 _____________________________
	Email:	 _____________________________	 _____________________________
	SWIFT
    Code:	 _____________________________	 _____________________________
	Comments:	 _____________________________	 _____________________________
	 	 	 
	For
    Non-US Subscribers Only:	 	 
	US
    Correspondent Bank Name:	 _____________________________	 _____________________________
	US
    Correspondent Bank’s Routing Codes

(either ABA # or CHIPS #):	 _____________________________	 _____________________________
	Beneficiary’s
    Bank’s Name:	 _____________________________	 _____________________________
	Beneficiary’s
    Bank’s Routing Codes

(either BIC # or UID #):	 _____________________________	 _____________________________
	Beneficiary’s
    Name:	 _____________________________	 _____________________________
	Beneficiary’s
    Account Number:	 _____________________________	 _____________________________
	Additional
    Reference Information:	 _____________________________	 _____________________________

 

SCHEDULE
2 – FOR ALL SUBSCRIBERS

    	-21-

    	 

    

 

7.Service
of Process. (For foreign Subscribers only. Does not apply to domestic Subscribers.) If the Subscriber is either
a foreign entity or is not a permanent resident of the United States, the Subscriber hereby irrevocably appoints the following
as an agent within the United States to receive service of process on behalf of the Subscriber in connection with the enforcement
of the obligation of the Subscriber to make capital contributions to the Company, or otherwise in connection with the Subscriber’s
subscription to contribute capital to the Company:

 

________________________________________________________________________________

________________________________________________________________________________

________________________________________________________________________________

 

8.Additional
Information. Please indicate your agreement with the statements below by checking “yes” or “no”.

 

	 	8.1.	You understand that the entire amount of your investment may be lost. ☐
Yes ☐ No

 

		8.2.	You
                                         have prior experience investing in, and are familiar with, the types of investments in
                                         which the Company will invest. ☐ Yes ☐ No

 

		8.3.	Following
                                         your investment in the Company, you will have adequate means of providing for your current
                                         needs and contingencies and you have no need for liquidity in this investment.  ☐ Yes
                                          ☐ No

 

SCHEDULE
2 – FOR ALL SUBSCRIBERS

    	-22-

    	 

    

 

Schedule
2 to Subscription Agreement: 

Status as Benefit Plan Investor

(For All Subscribers)

 

		(a)	Overview

 

A
regulation issued by the U.S. Department of Labor and Section 3(42) of ERISA define “Benefit Plan Investor”
as

 

(i)any
employee benefit plan subject to Part 4 of Subtitle B of Title I of ERISA;

 

(ii)any
plan to which Section 4975 of the Code applies (which includes a trust described in Section 401(a) of the Code that is exempt
from tax under Section 501(a) of the Code, a plan described in Section 403(a), an individual retirement account or annuity described
in Section 408 or 408A of the Code, a medical savings account described in Section 220(d) of the Code, a health savings account
described in Section 223(d) of the Code and an education savings account described in Section 530 of the Code); and

 

(iii)any
entity whose underlying assets include plan assets by reason of a plan’s investment in the entity (generally because 25
percent or more of a class of equity interests in the entity is owned by plans).

 

An
entity described in (iii) immediately above will be considered to hold plan assets only to the extent of the percentage of the
equity interests in the entity held by benefit plans described in (i) and (ii) immediately above.

 

		(b)	Status
                                         as Benefit Plan Investor (Please Check Each as Applicable)

 

(i)Is
the Subscriber subject to Part 4 of Subtitle B of Title I of ERISA, or an entity any of the assets of which include assets of
any such plan?

 

☐Yes

☐No

 

(ii)Is
the Subscriber a plan to which Section 4975 of the Code applies, or an entity any of the assets of which include assets of any
such plan?

 

☐Yes

☐No

 

(iii)Is
the Subscriber a governmental plan, non-electing church plan, or other employee benefit plan within the meaning of Section 3(3)
of ERISA that is not a plan described in (i) or (ii) above?

 

☐Yes

☐No

 

(iv)Is
the Subscriber an insurance company general account?

 

☐Yes

☐No

 

(v)Is
the Subscriber an entity whose underlying assets include plan assets by reason of a plan’s investment in the entity?

 

☐Yes

☐No

 

SCHEDULE
2 – FOR ALL SUBSCRIBERS

    	-23-

    	 

    

 

(vi)If
the answer to either question (iv) or (v) above is “yes,” the Subscriber represents, warrants and covenants that currently,
and for as long as it is an investor in the Company, the maximum percentage of the Subscriber’s assets that constitutes
Benefit Plan Investor assets will not exceed the percentage (in 10% increments) set forth below (please check one) (if nothing
is checked, we will assume 100%):

 

	 	0%	____	 	60%	____
	 	10%	____	 	70%	____
	 	20%	____	 	80%	____
	 	30%	____	 	90%	____
	 	40%	____	 	100%	____
	 	50%	____	 	 	 

 

(vii)If
the Subscriber is investing as a trustee or custodian for an Individual Retirement Account (“IRA”), is Subscriber
a qualified IRA custodian or trustee? If yes, the “Acknowledgement by IRA Custodian or Trustee with Respect to Investment
for an IRA” on the Signature Page to the Subscription Agreement for the Company must be completed.

 

☐Yes

☐No

 

SCHEDULE
2 – FOR ALL SUBSCRIBERS

    	-24-

    	 

    

 

Schedule
3 to Subscription Agreement:

 

Bring-Down
Certificate

 

The
undersigned, on behalf of [SUBSCRIBER], (the "Subscriber"), and in connection with Section 3 of the Form of Subscription
Agreement (the “Subscription Agreement”) between the Subscriber and Parkview Capital Credit, Inc. hereby represents
and warrants as follows:

 

		1.	The
                                         representations and warranties of the Subscriber contained in Sections 4 and 5 of the
                                         Subscription Agreement are true and correct in all material respects as of and on the
                                         date hereof as if made again on the date hereof.

 

		2.	The
                                         representations and warranties contained in this Bring-Down Certificate shall be deemed
                                         representations and warranties of the Subscriber pursuant and subject to the terms of
                                         the Subscription Agreement.

 

		3.	The
                                         Subscriber meets the definition of “Accredited Investor” as disclosed in
                                         Annex B to the Subscription Agreement and all representations and warranties made in
                                         Annex B are accurate as of and on the date hereof as if made again on the date hereof.

 

IN
WITNESS WHEREOF, the undersigned does hereby execute this Certificate effective as of the __ day of ________, 2015.

 

[SUBSCRIBER]

 

	By:	 	 

 

ANNEX A – FOR INDIVIDUAL SUBSCRIBERS ONLY

    	-25-

    	 

    

 

Annex A to Subscription Agreement: 

Subscriber Questionnaire for Individual Investors

 

		1.	Subscriber as an Individual Investor. The Subscriber’s investment in the Company
is being made (please check one and any corresponding box underneath the appropriate category):

 

	 	☐	as an individual.
	 	 	 
	 	☐	with the
    Subscriber’s spouse (please check one):1

 

☐as joint tenants with rights
of survivorship.

 

☐as tenants in common.

 

☐as community property.

 

	 	☐	through
    a revocable trust established to facilitate distribution of the Subscriber’s estate and there are ___ living grantor(s)
    and ___ beneficiary(ies) other than the grantors (determined by treating any person indirectly owning an interest in the trust
    through one or more pass-through entities (i.e., limited liability companies treated as a partnership for income
    tax purposes, partnerships, S corporations and trusts) as if such person were a beneficiary).

 

If the Subscriber is investing through
a revocable trust, the Subscriber further represents that: (Please indicate whether the following representations are applicable
by checking the appropriate box.)

 

a. substantially all of the value
of each beneficial owner’s interest (direct or indirect) in the trust is not attributable to such trust’s interest
(direct or indirect) in the Fund.

 

(Please check one.) ☐  True    ☐  False

 

	 	☐	through
    an Individual Retirement Account (For domestic Subscribers only. Does not apply to foreign Subscribers.) (Please
    check one box below and provide any applicable information.):

 

	 	☐	through the Subscriber’s self-directed Keogh Plan Account.
	 	 	 
	 	☐	through another self-directed employee benefit plan as defined in Title I of ERISA.

 

	1 	Any Co-Owner other than a spouse must submit a separate subscription agreement.

  

ANNEX A – FOR INDIVIDUAL SUBSCRIBERS
ONLY

    	-26-

    	 

    

  

		2.	Subscriber’s Net Worth or Income. (Please indicate whether the following
representation is applicable by checking the appropriate box.) The Subscriber has a net worth, individually or jointly
with the Subscriber’s spouse, which exceeds $1,000,000 at the time of each Closing,2
or had an individual income in excess of $200,000 in each of the two most recent years or joint income with the Subscriber’s
spouse of $300,000 in each of those years and the Subscriber has a reasonable expectation of reaching the same income level in
the current year.3

 

(Please check one)   ☐  Yes    ☐  No

 

		3.	Qualified Purchaser Questionnaire. The Subscriber is a “Qualified Purchaser”
within the meaning of Section 3(c)(7) of the Investment Company Act of 1940, as amended (the “Investment Company Act”)
and as such term is defined in Section 2(a)(51)(A) of the Investment Company Act and Rule 2a-51 thereunder because: (Note:
Please read the definition of “Investments” in Exhibit A to this Subscription Agreement.) (Please indicate by checking
the applicable box below):

 

	 	☐	the Subscriber is a natural person who owns $5,000,000 or more in Investments (including Investments owned jointly with the Subscriber’s spouse);
	 	 	 
	 	☐	the Subscriber and its spouse will hold the Shares jointly as spouses and together they own $5,000,000 or more in Investments (including Investments owned jointly);
	 	 	 
	 	☐	the Subscriber is a company
    4 that owns $5,000,000 or more in Investments and the Subscriber is owned directly or indirectly by natural persons who
    are related as siblings or spouses (including former spouses), or direct lineal descendants by birth or adoption, spouses of
    such persons, the estates of such persons, or foundations, charitable organizations, or trusts established by or for the
    benefit of such persons; or
	 	 	 
	 	☐	the Subscriber
is not a Qualified Purchaser.

 

		4.	Subscriber Not Company-Related.
The Subscriber ☐ is ☐ is not (please check one) “Company-Related.”5

 

 

 

	2 	For purposes of calculating an individual Subscriber’s net worth
for this Subscription Agreement, net worth generally means the excess of total assets at fair market value (excluding the value
of the primary residence of the Subscriber) over total liabilities, subject to the following adjustments: (i) indebtedness that
is secured by the Subscriber’s primary residence in excess of the estimated fair market value of the primary residence is
included as a liability, and (ii) indebtedness that is secured by the Subscriber’s primary residence, up to the estimated
fair market value of the primary residence at the time of the entry into this Subscription Agreement, is not included as a liability
(except that if the amount of such indebtedness outstanding at the time of the entry into this Subscription Agreement exceeds
the amount outstanding 60 days before such time, other than as a result of the acquisition of the primary residence, the amount
of such excess is included as a liability).

 

	3	For purposes of this Subscription Agreement, individual income means adjusted gross income, as
reported for federal income tax purposes, less any income attributable to a spouse or to property owned by a spouse, increased
by the following amounts (but not including any amounts attributable to a spouse or to property owned by a spouse): (i) the amount
of any tax-exempt interest income under Section 103 of the Code, and any “qualified distribution” from a Roth
IRA received; (ii) the amount of losses claimed as a limited partner in a limited partnership as reported on Schedule E of
Form 1040; (iii) any deduction claimed for depletion under Section 611 et seq. of the Code; (iv) amounts contributed
to an Individual Retirement Account (other than a Roth IRA), as defined in the Code, or Keogh retirement plan; (v) alimony paid;
(vi) any elective contributions to a cash or deferred arrangement under Section 401(k) of the Code; and (vii) for applicable taxable
years, any amount by which income from long-term capital gains has been reduced in arriving at adjusted gross income pursuant to
the provisions of Section 1202 of the Code.

		4	The term “company” includes a corporation, partnership, association, trust, fund, or
any organized group of persons.

		5	“Company-Related” means any person who is a (i) director, officer, trustee, advisory
board member or knowledgeable employee of the Company, Advisor, Administrator or of an affiliated person of the Company, Advisor
or Administrator that oversees the Company’s investments, or (ii) a company owned exclusively by persons described in the
preceding clause.

 

ANNEX A – FOR INDIVIDUAL SUBSCRIBERS
ONLY

    	-27-

    	 

    

 

		5.	Subscriber Status as U.S./Foreign Person. (Please read Section 5.1 and check
the box if you are described in such section. If not, check the box next to 5.2.)

 

		5.1.	☐ For U.S. Persons. Subscriber is a natural person who is (i) a citizen of the
United States or (ii) a resident of the United States, even if not a citizen.

 

		5.2.	☐ For Foreign Persons. The Subscriber is not a person described in Section 6.1.

 

		6.	Required IRS Certification. (Please read Section 6.1 if you are a U.S. Subscriber
or Section 6.2 if you are a foreign Subscriber and indicate whether either representation is applicable to you by checking the
box next to such statement )

 

		6.1.	☐ IRS/W-9 Certification for U.S. Subscribers. The Subscriber is a person described
in Section 5.1 and has attached hereto a properly completed and duly executed copy of Form W-9 “Request for Taxpayer Identification
Number and Certification” in accordance with the instructions accompanying such form. The Subscriber agrees to promptly notify
the General Partner and provide the General Partner with a new properly completed and duly executed copy of such form in the event
any information the Subscriber provided on Form W-9 becomes inaccurate.

 

		6.2.	☐ IRS/W-8 Certification for Foreign Subscribers (i.e. persons who cannot
make the certification in Section 6.1 above). Attached hereto is a properly completed and duly executed copy of Form W-8BEN
or such other Form W-8 applicable to the Subscriber. The Subscriber agrees to promptly notify the General Partner and provide the
General Partner with a new properly completed and duly executed copy of such form in the event any information the Subscriber provided
thereon becomes inaccurate. In addition, upon request of the General Partner, the Subscriber will provide the General Partner with
a new properly completed and duly executed copy of Form W-8BEN or such other Form W-8 applicable to the Subscriber within every
three calendar years of the date on which it initially invested in the Fund.

 

END OF ANNEX A

 

 

Advisor or Administrator that oversees the Company’s investments, or (ii) a company owned exclusively
by persons described in the preceding clause.

 

ANNEX A – FOR INDIVIDUAL SUBSCRIBERS
ONLY

    	-28-

    	 

    

 

Annex B to Subscription
Agreement: 

Subscriber Questionnaire for Institutional Investors

 

		1.	Accredited Investor Questionnaire. The Subscriber is an “accredited investor”
within the meaning of Rule 501(a) of Regulation D (“Regulation D”) promulgated pursuant to the Securities Act
because it is (please indicate by checking the applicable boxes):

 

	 	☐	an employee benefit plan as defined in Title I of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and (check appropriate box):

 

	 	☐	the investment decision is made by a plan fiduciary as defined in Section 3(21) of ERISA, which is either a bank, savings and loan association, insurance company or registered investment adviser and the name of the plan fiduciary is _________________________; or
	 	 	 
	 	☐	the plan has total assets in excess of $5,000,000 ; or
	 	 	 
	 	☐	the plan is a self-directed plan, with investment decisions made solely by persons that are “accredited investors” within the meaning of Regulation D; or
	 	 	 
	 	☐	the plan is a participant directed plan, the participant for whose benefit the investment in the Company is being made has directed such investment, and the participant is an “accredited investor” within the meaning of Regulation D.

 

	 	☐	a plan that is established and maintained by a state, its political subdivisions or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, and has total assets in excess of $5,000,000.
	 	 	 
	 	☐	an insurance company as defined in Section 2(13) of the Securities Act.
	 	 	 
	 	☐	an investment company registered under the Investment Company Act.
	 	 	 
	 	☐	a business development company (as defined in Section 2(a)(48) of the Investment Company Act).
	 	 	 
	 	☐	a private business development company as defined in Section 202(a)(22) of the Investment Advisers Act of 1940, as amended (the “Investment Advisers Act”).
	 	 	 
	 	☐	a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) of the Small Business Investment Act of 1958, as amended.
	 	 	 
	 	☐	a bank (as defined in Section 3(a)(2) of the Securities Act) or a savings and loan association or other institution (as defined in Section 3(a)(5)(A) of the Securities Act), whether acting in regard to this investment in its individual or a fiduciary capacity.
	 	 	 
	 	☐	a broker or dealer registered pursuant to Section 15 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).
	 	 	 
	 	☐	an organization described in Section 501(c)(3) of the Code, not formed for the specific purpose of acquiring the Shares, with total assets in excess of $5,000,000.
	 	 	 
	 	☐	a corporation, foundation, endowment, a Massachusetts or similar business trust, partnership or limited liability company, not formed for the specific purpose of acquiring the Shares, with total assets in excess of $5,000,000.

 

ANNEX B – FOR INSTITUTIONAL SUBSCRIBERS
ONLY

    	-29-

    	 

    

 

	 	☐	a trust with total assets in excess of $5,000,000, not formed for the specific purpose of acquiring the Shares, whose purchase
of the Shares is directed by a sophisticated person who has such knowledge and experience in financial and business matters that
such person is capable of evaluating the merits and risks of the prospective investment.

 

		☐	an entity in which all of the equity owners are “accredited investors” within the meaning of Regulation D (If this
box is checked, please provide a completed Subscriber Questionnaire for each equity owner).

 

		☐	a revocable trust that may be amended or revoked at any time by the grantors thereof and all the grantors are “accredited
investors” within the meaning of Regulation D (If this box is checked, please contact the Company and provide a list of
the grantors. Additional information may be required concerning the accredited investor status of each grantor).  

 

		2.	Qualified Purchaser Questionnaire. The Subscriber is a “Qualified Purchaser”
within the meaning of Section 3(c)(7) of the Investment Company Act and as such term is defined in Section 2(a)(51)(A) of the Investment
Company Act and Rule 2a-51 thereunder because it is a/an (Note: Please read the definition of “Investments” in
Exhibit A to this Subscription Agreement.) (Please indicate by checking the applicable boxes below ):

 

	 	☐	Institutional Entity - any person (e.g., an institutional investor) that owns and invests on a discretionary basis not less than
$25,000,000 in Investments (other than a self-directed employee benefit plan or trust).

 

	 	☐	Closely-Held Company - a company1
that owns $5,000,000 or more in Investments and that is owned directly or indirectly by or for two or more natural
persons who are related as siblings or spouses (including former spouses), or direct lineal descendants by birth or adoption,
spouses of such persons, the estates of such persons, or foundations, charitable organizations or trusts established for the benefit
of such persons.

 

	 	☐	Trust - a trust not formed for the specific purpose of acquiring the Shares for which the trustee or other person authorized to
make decisions with respect to the trust, and each settlor or other person who has contributed assets to the trust, is and at
the time of contributing assets to the trust was (a) a Qualified Purchaser described in the clause above, (b) a natural person
who owns not less than $5,000,000 in Investments or (c) any person, acting for his own account or the accounts of other Qualified
Purchasers, who in the aggregate owns and invests on a discretionary basis, not less than $25,000,000 in Investments.

 

	 	☐	Qualified Institutional Buyer - a “Qualified Institutional Buyer” as defined in Rule 144A (“Rule 144A”):

 

	 	☐	(a)acting for its own account (or for the account of another Qualified Institutional Buyer or another Qualified Purchaser)
other than a dealer (as defined in paragraph (a)(i)(ii) of Rule 144A) or an employee benefit plan or trust.

 

	 	☐	(b)which is an employee benefit plan or trust for which investment decisions are made solely by the fiduciary, trustee or
sponsor of such plan or trust.

 

 

		1	The term “company” includes a corporation, partnership, association, trust, fund or any organized group of persons.

 

ANNEX B – FOR INSTITUTIONAL SUBSCRIBERS
ONLY

    	-30-

    	 

    

 

	 	☐	Entity Comprised of Qualified Purchasers - an entity, all of the beneficial owners of which are Qualified Purchasers (includes
Qualified Purchasers described in this Section 2 and natural persons who own not less than $5,000,000 in Investments) (If this
box is checked, please have each beneficial owner complete a Subscriber Questionnaire).

 

	 	☐	any other person (e.g., an institutional investor) that owns and invests on a discretionary basis not less than $25,000,000 in
Investments (other than a self-directed employee benefit plan or trust).

 

	 	☐	The Subscriber is not a Qualified Purchaser.

 

		3.	Excluded Investment Entity Formed Prior to April 30, 1996. If the Subscriber is an
investment entity that is excluded from regulation under the Investment Company Act pursuant to Section 3(c)(1) or Section 3(c)(7)
thereunder and was formed prior to April 30, 1996, it has obtained all requisite consents from the Subscriber’s direct or
indirect beneficial owners to be treated as a “Qualified Purchaser” as required by Section 2(a)(51)(C) of the Investment
Company Act and Rule 2a51-2 thereunder: (Please answer by checking the applicable box below.)

 

☐  Yes    ☐  No    ☐  Not Applicable

 

		4.	Subscriber as an Investor.

 

		4.1.	Subscriber Primarily Engaged in Investing, Reinvesting or Trading. Is the Subscriber
engaged primarily in the business of investing, reinvesting or trading in securities for which ownership interests are held in
the form of limited or general partnership interests, common stock, trust units, debt instruments or other securities? (Please
answer “yes” or “no” below by checking the applicable box below.

 

☐  Yes    ☐  No

 

		4.2.	Inclusion In or Exclusion From the Investment Company Act. If the Subscriber answered
“yes” to question 4.1 above, the Subscriber (please check the applicable box below):

 

		A.	☐ is an investment company as defined under Section 3(a)(1) of the Investment Company Act, including
registered investment companies;

 

		B.	☐ is excluded from the definition of “investment company” under the
                                                            Investment Company Act (please check  (1) or  (2) below):

 

		(1)	☐ in reliance on Section 3(c)(1) of the Investment Company Act (a private investment company
with fewer than 100 beneficial owners);

 

		(2)	☐ in reliance on Section 3(c)(7) of the Investment Company Act (a private company owned exclusively
by “Qualified Purchasers”); or

 

		C.	☐ is excluded from the definition of “investment company” under the Investment Company
Act in reliance on an exclusion other than Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act or otherwise excluded
from regulation under the Investment Company Act.

 

ANNEX B – FOR INSTITUTIONAL
SUBSCRIBERS ONLY

    	-31-

    	 

    

 

		4.3.	Number of Beneficial Owners. If the Subscriber responded to question 4.2.B(1) or
4.2.B(2) above, the number of beneficial owners (as determined under Section 3(c)(1) or 3(c)(7), as applicable) of its investment
entity is __________. (The Company, in its sole discretion, may request information regarding the identity of the Subscriber’s
beneficial owners.)

  

		5.	The Subscriber: (Please check each applicable subsection below.)

 

☐ was☐ was not
formed, organized, reorganized, capitalized or recapitalized for the specific purpose of acquiring Shares;

 

☐ is ☐ is not operated for the
specific purpose of acquiring Shares;

 

☐ is ☐ is not an investment entity
for which the Subscriber’s stockholders, partners, members or other beneficial owners can have individual discretion as to
their participation or non-participation through the Subscriber in (i) the Subscriber’s purchase of Shares or (ii) particular
investments made by the Company;

 

☐ will ☐ will not
have more than 40% of the value of the Subscriber’s total assets (or, if the Subscriber is a private investment fund
with binding, unconditional capital commitments from the Subscriber’s partners or members, more than 40% of the
Subscriber’s committed capital) invested in the Company upon making this investment;

 

☐ is ☐ is not aware of any other
circumstances that would require the Company to treat it as more than “one person” for purposes of Section 3(c)(1)
or Section 3(c)(7) of the Investment Company Act.

 

☐ has ☐ has never filed for or
been involved as a debtor in bankruptcy proceedings and there are no suits pending or judgments outstanding against it which, in
one case or in the aggregate, could impair its ability to make capital contributions to the Company.

 

		6.	Funds Invested by the Subscriber. (For domestic and foreign Subscribers.)
The funds invested by the Subscriber in the Company ☐ do ☐ do not (please check one) constitute the assets of
(a) an employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title I of ERISA, (b) a plan described in Section
4975(e)(1) of the Code, subject to Section 4975 of the Code, or (c) an entity whose underlying assets include assets of a plan
described in (a) or (b).

 

		7.	Relationship to Company.

 

		7.1.	The Subscriber ☐ is ☐ is not (please check one)
                                                                                                    “Company-Related.” 2

 

		7.2.	☐The Subscriber does ☐ does not ☐ have discretionary authority or control with respect
to the assets of the Company or ☐ is ☐ is not a person that provides investment advice with respect to the Company’s
assets, or an “affiliate” of such a person. For purposes of this representation, an “affiliate” is any
person controlling, controlled by or under common control with the Company or any of its investment advisers, including by reason
of having the power to exercise a controlling influence over the management or policies of the Company or its investment adviser(s).

 

 

		2	“Company-Related” means any person who is a (i) director, officer, trustee, advisory
board member or knowledgeable employee of the Company, Advisor, Administrator or of an affiliated person of the Company, Advisor
or Administrator that oversees the Company’s investments, or (ii) a company owned exclusively by persons described in the
preceding clause.

 

ANNEX B – FOR INSTITUTIONAL
SUBSCRIBERS ONLY

    	-32-

    	 

    

  

		8.	Subscriber Status as U.S./Foreign Person. (Please read Section  8.1
and check the box if you are described in such section. If not, check the box next to Section  8.2) 

 

		8.1.	☐ For U.S. Persons. Subscriber is (i) an entity created or organized in or
                                                                                                    under the laws of the U.S., any state thereof that is treated for U.S. income tax purposes as a partnership or corporation,
                                                                                                    (ii) a trust, if either (A) the administration of which a court within the United States is able to exercise primary
                                                                                                    supervision over or for which one or more United States persons (including individual citizens or residents of the U.S.) have
                                                                                                    the authority to control all substantial decisions, or (B) the trust has a valid election in effect to be treated as a U.S.
                                                                                                    person, or (iii) an estate the income of which is subject to tax in the United States regardless of its source.

 

		8.2.	☐ For Foreign Persons. The Subscriber is not a Person described in Section
                                                                                                    8.1.

 

		9.	Required IRS Certification. (Please read Section 9.1 if you are a domestic Subscriber
and Section 9.2 if you are a foreign Subscriber and indicate whether either representation is applicable to you by checking the
box next such statement.)

 

		9.1.	☐ IRS/W-9 Certification for U.S. Subscribers. The Subscriber is a person of
                                                                                                    the type described in Section 8.1 and has attached hereto a properly completed and duly executed copy of Form W-9
                                                                                                    “Request for Taxpayer Identification Number and Certification” in accordance with the instructions accompanying
                                                                                                    such form. The Subscriber agrees to promptly notify the Company and provide the Company with a new properly completed and
                                                                                                    duly executed copy of such form in the event any information the Subscriber provided on Form W-9 becomes inaccurate. NOTE:
                                                                                                    Shareholders should consult their tax adviser regarding other forms that may be delivered to the Company to reduce or
                                                                                                    eliminate withholding or other taxes.

 

		9.2.	☐ IRS/W-8 Certification for Foreign Subscribers. (i.e.
                                                                                                    persons who cannot make the certification in Section 9.1 above). Attached hereto is a properly completed and duly
                                                                                                    executed copy of Form W-8BEN or such other Form W-8 applicable to the Subscriber. The Subscriber agrees to promptly notify
                                                                                                    the Company and provide the Company with a new properly completed and duly executed copy of such form in the event any
                                                                                                    information the Subscriber provided thereon becomes inaccurate. In addition, upon request of the Company, the Subscriber will
                                                                                                    provide the Company with a new properly completed and duly executed copy of Form W-8BEN or such other Form W-8 applicable to
                                                                                                    the Subscriber within every three calendar years of the date on which it initially invested in the Company. NOTE:
                                                                                                    Shareholders should consult their tax adviser regarding other forms that may be delivered to the Company to reduce or
                                                                                                    eliminate withholding or other taxes.

 

	10.	Subscriber Status as Bank Holding Company. (Please check the box if applicable.)

 

☐ The Subscriber is
subject to the Bank Holding Company Act of 1956, as amended (the “BHCA”) or is directly or indirectly “controlled”
(as that term is defined in the BHCA) by a company that is subject to the BHCA under the BHCA.

 

ANNEX B – FOR INSTITUTIONAL
SUBSCRIBERS ONLY

    	-33-

    	 

    

 

		11.	Subscriber Subject to Public Disclosure Laws. (If applicable, please check the box
and fill-in the requested information.)

 

☐The Subscriber is
subject to the Freedom of Information Act, 5 U.S.C § 552 (“FOIA”), any state public records access laws,
any state or other jurisdiction’s laws similar in intent or effect to FOIA, or any similar statutory or legal right that
might result in the disclosure of confidential information relating to the Company (together with FOIA, “Public Disclosure
Laws”).

 

Please indicate the relevant Public Disclosure
Laws to which the Subscriber is subject.

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

_____________________________________________________________________________________

 

END OF ANNEX B

 

ANNEX B – FOR INSTITUTIONAL
SUBSCRIBERS ONLY

    	-34-

    	 

    

 

Exhibit A: 

Definitions for Purposes of Determining Qualified Purchaser Status

 

For purposes of the definition
of a “Qualified Purchaser,” the following constitute “Investments”:

 

		1.	Included Assets:

 

		1.1.	Securities,1
                                                                except securities of an issuer that controls, 2 is
                                                                controlled by or is under common control with the proposed Qualified Purchaser, that owns such securities, unless the issuer
                                                                of such securities is (a) an investment company registered under the Investment Company Act, a company that would be an
                                                                investment company but for the exclusions provided by sections 3(c)(1) through 3(c)(9) of the Investment Company Act
                                                                (including a broker-dealer, bank or finance company) or exempt under Rule 3a-6 (foreign banks/insurance companies) or 3a-7
                                                                (certain structured finance vehicles) of the Investment Company Act; (b) a commodity pool; (c) a public company that files
                                                                reports pursuant to Section 13 or 15(d) of the Exchange Act or is listed on a designated offshore securities market;3
                                                                or (d) a private company that has shareholders equity in excess of $50,000,000 as reflected in its most recent financial
                                                                statement (which shall be as of a date within sixteen (16) months from the date of the proposed Qualified Purchaser’s
                                                                investment in the Company), determined using generally accepted accounting procedures;

 

		1.2.	Real estate held for investment purposes;

 

		1.3.	Commodity interests or physical commodities held for investment purposes, including commodity
futures contracts, options on such futures contracts and options on physical commodities traded on or subject to the rules of any
contract market designated for trading such transactions under the Commodity Exchange Act and the rules thereunder, or board of
trade or exchange outside the U.S., as contemplated in Part 30 of the rules under the Commodity Exchange Act;

 

 

		1	“Security”
                                         means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate
                                         of interest or participation in any profit-sharing agreement, collateral-trust certificate,
                                         preorganization certificate or subscription, transferable share, investment contract,
                                         voting trust certificate, certificate of deposit for a security, fractional undivided
                                         interest in oil, gas or other mineral rights, any put, call, straddle, option, or privilege
                                         on any security, certificate of deposit, or group or index of securities (including any
                                         interest therein based on the value thereof) or any put, call, straddle, option, or privilege
                                         entered into on a national securities exchange relating to foreign currency, or, in general,
                                         any interest or instrument commonly known as a “security,” or any certificate
                                         of interest or participation in, temporary or interim certificate for, receipt for, guarantee
                                         of, or warrant or right to subscribe to or purchase, any of the foregoing.
		 	 
		2	“Control” is defined in Section 2(a)(9) of the Investment Company Act as “the
power to exercise a controlling influence over the management or policies of a company, unless such power is solely the result
of an official position with such company.” Direct or indirect ownership of 25% of a company is presumed control.
		 	 
		3	“Designated offshore securities market” means the Eurobond market, as regulated by
the Association of International Bond Dealers; the Amsterdam Stock Exchange; the Australian Stock Exchange Limited; the Bermuda
Stock Exchange; the Bourse de Bruxelles; the Copenhagen Stock Exchange; the European Association of Securities Dealers Automated
Quotation; the Frankfurt Stock Exchange; the Helsinki Stock Exchange; The Stock Exchange of Hong Kong Limited; the Irish Stock
Exchange; the Istanbul Stock Exchange; the Johnannesburg Stock Exchange; the London Stock Exchange; the Bourse de Luxembourg; the
Mexico Stock Exchange; the Borsa Valori di Milan; the Montreal Stock Exchange; the Oslo Stock Exchange; the Bourse de Paris; the
Stock Exchange of Singapore; the Stockholm Stock Exchange; the Tokyo Stock Exchange; the Toronto Stock Exchange; the Vancouver
Stock Exchange; the Warsaw Stock Exchange and the Zurich Stock Exchange, and any other foreign stock exchange designated by the
Securities and Exchange Commission under Regulation S of the Securities Act.

 

EXHIBIT A – DEFINITIONS

    	-35-

    	 

    

 

		1.4.	Financial Contracts as defined in Section 3(c)(ii)(B)(2) of the Investment Company Act entered
into for investment purposes, to the extent such contracts are not securities.

 

		1.5.	Cash and cash equivalents held for investment purposes such as bank CDs and demand deposits,
money market investments, and net cash surrender value of insurance policies;

 

		1.6.	With respect to investments in the Company to be made by companies exempt from registration pursuant
to Section 3(c)(1) or 3(c)(7) of the Investment Company Act and commodity pools, binding capital commitments to acquire an interest
in, or make capital contributions to, the Subscriber, may be included as Investments owned;

 

		1.7.	With respect to natural persons, the value of investments held in IRA, 401K and similar retirement
plans for the benefit of, and for which investments are directed by, such persons may be included as Investments; and

 

		1.8.	Companies can count Investments held by majority-owned subsidiaries (corporate or otherwise),
a parent company of which the subscribing company is a majority-owned subsidiary and other majority-owned subsidiaries of such
parent company, regardless of whether the parent or such a subsidiary company is the proposed Qualified Purchaser.

 

		2.	Excluded Assets:

 

		2.1.	Real estate used for “personal
                                         use,” 4
                                         as a place of business, or in connection with a trade or business by the Subscriber
                                         or a “Related Person.” 5
                                         Property that has been used by the Subscriber or a Related Person as a place
                                         of business or in connection with the conduct of a trade or business is also not an “investment,”
                                         unless the Subscriber is primarily engaged in the real estate investment and development
                                         business;

 

		2.2.	Controlled companies other than as described in 1.1(a)-(d) above;

 

		2.3.	Cash that is not held for investment;

 

		2.4.	Commodities held and financial contracts entered into as part of a trade or business, unless
the Subscriber is primarily engaged in the business of investing in or trading commodity interests, physical commodities or financial
contracts; and

 

		2.5.	Jewelry, art work, antiques and other collectibles.

 

		3.	Valuation of “Investments”:

 

		3.1.	Investments are valued at cost or fair market value on the most recent practicable date, less
outstanding indebtedness incurred to acquire or for the purpose of acquiring the Investments;

 

		3.2.	Family Companies must deduct indebtedness incurred by the Family Company or any of its owners
to acquire Investments held by the Family Company; and

 

		3.3.	For commodities, valuation is based on the initial margin or option premium deposited with the
futures commission merchant. Swap agreements and similar financial contracts are valued at fair market value or cost (not notional
amount).

 

 

	4	Residential real estate will not be deemed to be used for personal purposes if deductions with
respect to such real estate are not disallowed by Section 280A of the Code.

		5	A “Related Person” is any person who is a sibling, spouse or former spouse or any direct
lineal descendant or ancestor by birth or adoption of the Subscriber or a spouse of such descendant or ancestor; provided that,
with respect to a Family Company (as defined in paragraph (A)(ii) of Section 2(a)(51) of the Investment Company Act), a Related
Person includes any owner of the Family Company and any person who is a Related Person of such owner.

 

EXHIBIT A – DEFINITIONS

    	-36-

    	 

    

 

Appendix 1

 

Questionnaire For Benefit Plan Investors

 

In order to assist the Company in
complying with ERISA, subscribers that are subject to ERISA or to Section 4975 of the Code must provide the information requested
below.

 

		(a)	Please list below all persons or entities that have the authority to (i) make this investment in
the Company, (ii) terminate this investment in the Company, or (iii) negotiate the terms of this investment in the Company.

 

__________________________________________________________________

 

__________________________________________________________________

 

__________________________________________________________________

 

__________________________________________________________________

 

__________________________________________________________________

 

		(b)	Please identify each employer of employees covered by each plan, the assets of which are included
in the Benefit Plan Investor’s assets.

 

___________________________________________________________________

 

___________________________________________________________________

 

___________________________________________________________________

 

___________________________________________________________________

 

(Attach additional page(s) if necessary.)

 

APPENDIX 1 – FOR BENEFIT PLAN
INVESTORS

    	-37-

    	 

    

 

		(c)	Please list below all “affiliates”
                                                               1 of persons listed in response to questions (a) and (b) above.

 

 __________________________________________________________________

 

__________________________________________________________________

 

__________________________________________________________________

 

__________________________________________________________________

 

(Attach additional page(s) if necessary.)

 

The signatory to the Subscription Agreement
agrees to notify the Company promptly of any changes in the foregoing information which may occur prior to or following an investment
in the Company.

 

 

 

1 “Affiliates” is defined for this
purpose to include: (i) any person directly or indirectly, through one or more intermediaries, controlling, controlled by, or
under common control with the person; (ii) any corporation, partnership, trust or unincorporated enterprise of which such
person is an officer, director, 10 percent or more partner, or highly compensated employee as defined in Section
4975(e)(2)(H) of the Code (but only if the employer of such employee is the plan sponsor); and (iii) any director of the
person or any employee of the person who is a highly compensated employee (as defined in Section 4975(e)(2)(H) of the Code),
or who has direct or indirect authority, responsibility or control regarding the custody, management or disposition of plan
assets. A named fiduciary of a plan with respect to the plan assets involved in the transaction and an employer (any of whose
employees are covered by the plan) are affiliates with respect to each other for these purposes only if such employer or its
affiliate has the authority (alone or shared with others) to appoint or terminate the named fiduciary or negotiate the terms
of the named fiduciary’s employment agreement.

APPENDIX 1 – FOR BENEFIT PLAN
INVESTORS

    	-38-

    	 

    

 

Appendix 2

 

Electronic Mail Authorization

 

By signing below (and as long as you provide
us with an electronic mail address) you consent to any and all authorized contacts receiving electronic communications and understand
that no paper copy will follow by mail. You agree that the authorized contacts listed in the Subscription Agreement (and any others
you may subsequently identify) are specified as your agents for the limited purpose of receiving, on your behalf, any electronic
delivery including, but not limited to, account statements, performance reports, privacy notices, disclosure documents and any
other information delivered or provided (i) by Parkview Capital Credit, Inc. (the “Company”) or
any of its affiliates in connection with an investment in the Company and (ii) by any other agent of the foregoing.

 

You further agree to provide notification to
the Company promptly in writing of any change to an e-mail or any other electronic delivery address specified above or otherwise
agreed between you and the Company. Until we have received notice of a change, we may continue to send information to the previous
e-mail or other electronic address, and any such information will be deemed to have been delivered, whether or not it is actually
received. Additionally, you acknowledge and agree by signing below that a successful transmission report received by the Company
will constitute delivery of any communication. At your request, we will send you paper copies of any information we make available
in electronic form. You may request paper copies by contacting the Company. You agree, however, that neither your request for,
nor our delivery of, a paper copy will imply that the previous electronic delivery of the information did not constitute good and
effective delivery.

 

Although the Company will take all appropriate
measures to protect the confidentiality of any information transmitted through e-mail, please be advised that the facility to encrypt
e-mail messages is not available. Furthermore, the Internet is not a secure environment and the use of Internet e-mail carries
with it a number of inherent risks. As a result, we cannot guarantee that e-mail will be delivered within a reasonable time or
at all; that e-mail comes from the purported sender; that e-mail is not intercepted by unauthorized or unintended third parties;
that the content of the e-mail is unaltered from the time of transmission and therefore we cannot guarantee the accuracy or completeness
of the information; or that the e-mail sent by us will be free from viruses.

 

You are responsible for having any necessary
hardware, software or other technology to access electronic communication. By signing below, you acknowledge and agree that you
are aware of and accept the risks associated with Internet e-mail and that the Company’s agents, the Company, their respective
affiliates and each of their respective directors, employees and agents will have no liability, contingent or otherwise, to you
or any third party arising from or in any way related to the use of electronic communication.

 

FORMAT OF INFORMATION

 

The documents and other information delivered
electronically may be formatted in Adobe Acrobat’s portable document format (“PDF”), or other file formats we
deem appropriate.

 

E-mail Address: ______________________________

 

Please acknowledge your consent by signing here: ______________________________

 

APPENDIX 2 – FOR ALL INVESTORS

 

    	-39-

    	 

    

 

PARKVIEW
CAPITAL CREDIT, INC.

 

Summary
of Terms

 

	Issuer	Parkview
    Capital Credit, Inc. (the “Company”)
	 	 
	Offering
    Price	$10.00
    per share
	 	 
	Net
    Asset Value	$9.81
    per share as of June 30, 2015
	 	 
	Investment
    Objective	The
    Company’s investment objective is to generate both current income and capital appreciation primarily by making direct
    investments in lower middle-market companies in the form of subordinated debt and, to a lesser extent, senior debt and minority
    equity investments. While the Company’s primary investment focus is to make loans to, and selected equity investments
    in, privately-held lower-middle-market companies, it may also make opportunistic investments in larger or smaller companies.
    
	 	 
	Investment
    Strategy	The
    Company will seek to maximize the total return to its stockholders by:

 

		●	accessing
                                         the extensive origination channels that have been developed and established by the investment
                                         professionals of Parkview Advisors LLC (the “Advisor”), which includes long-standing
                                         relationships with private equity firms, commercial banks, investment banks and other
                                         financial services firms;
	 	 	 
		●	investing in what the Company believes
                                to be companies with strong business fundamentals, generally within its core middle-market company
                                focus;
	 	 	 
		●	focusing on a variety of industry sectors,
                                including business services, energy, general industrial, government services, healthcare, software
                                and specialty finance;
	 	 	 
			directly originating loans to portfolio companies
                  and participating in broadly syndicated financings;
	 	 	 
		●	applying a disciplined investment process
                                and underwriting standards that the Advisor’s investment professionals have developed over
                                their extensive investing careers; and
	 	 	 
		●	capitalizing upon the experience and
                                resources of the Advisor’s investment professionals to monitor investments.

 

	Use
    of Proceeds	The
    Company intends to use substantially all of the proceeds from this offering, net of expenses, to make investments in private
    U.S. companies in accordance with its investment objective and using the strategies described in the Registration Statement
    on Form 10 (the “Registration Statement”). The Company intends to use the remainder of the proceeds for working
    capital and general corporate purposes, including the payment of operating expenses. Depending on the size of a subscription
    received in this offering, the Company anticipates that it may take three to six months to deploy substantially all of such
    proceeds in accordance with its investment objective and pursuant to the strategies disclosed in this Registration Statement.
    Pending these investments, the Company intends to temporarily invest the net proceeds from this private offering in cash,
    cash equivalents, U.S. government securities, repurchase agreements and high quality debt instruments maturing in one year
    or less from the time of investment. Such temporary investments will likely earn yields substantially lower than the income
    the Company expects to receive from its targeted investments in lower middle-market companies. 

 

    	-40-

    	 

    

 

	BDC
    and RIC Elections	The
    Company will operate as a non-diversified, closed-end management investment company and intends to file an election to be
    regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended, following
    the effectiveness of the Registration Statement. In addition, the Company intends to elect for U.S. federal income tax purposes
    to be treated as a regulated investment company (“RIC”), under Subchapter M of the Internal Revenue Code of 1986,
    as amended. As a BDC and a RIC, the Company will be required to comply with certain regulatory requirements. See “Item
    1. Business—Regulation as a Public Business Development Company” and “—Certain U.S. Federal
    Income Tax Consequences” of the Registration Statement.
	 	 
	Investment
    Advisory Agreement	Under
    the terms of the Investment Advisory Agreement with the Advisor, the Company will pay the Advisor a base management fee and
    may also pay incentive fees. See “Item 1. Business—Advisory Agreement” for a description of the base
    management fees and incentive fees payable to the Advisor pursuant to the Investment Advisory Agreement.
	 	 
	Risk
    Factors	An
    investment in shares of common stock of the Company involves certain risks relating to its structure and investment objective.
    For a description of the material risks facing the Company, please see “Item 1A. Risk Factors” of the Registration
    Statement. The risks set forth in the Registration Statement are not the only risks the Company faces, and the Company may
    face other risks that it has not yet identified, which it does not currently deem material or which are not yet predictable.
    If any of the risks described in the Registration Statement occur, the Company’s business, financial condition and results
    of operations could be materially adversely affected. In such case, the Company’s net asset value and the value of its
    common stock could decline, and investors may lose all or part of their investment. 

 

 

-41-Exhibit 10.1

EXECUTION VERSION

 

 

MASTER AGREEMENT

by and between

SprintCom, Inc.

(“Sprint”)

 

and

Shenandoah Personal Communications, LLC

(“Shentel”)

 

dated as of

August 10, 2015

 

 

TABLE OF CONTENTS

 

	
ARTICLE I DEFINITIONS

	
1

		
Section 1.1

	
Definitions

	
1

		
Section 1.2

	
Interpretation

	
8

	 	
	
ARTICLE II MONTHLY RETAINAGE REDUCTION

	
8

		
Section 2.1

	
Monthly Retainage Reduction

	
8

		
Section 2.2

	
Shentel Reimbursement

	
9

		
Section 2.3

	
Sprint Payment for Active Sprint Retail Subscribers

	
9

		
Section 2.4

	
Reporting and Audit Rights.

	
10

	 	
	
ARTICLE III CLOSING

	
10

		
Section 3.1

	
Time and Place

	
10

		
Section 3.2

	
Deliveries

	
11

		
Section 3.3

	
Procedure

	
11

	 	
	
ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SPRINT

	
11

		
Section 4.1

	
Organization and Authority; Non-Contravention

	
11

		
Section 4.2

	
No Conflicts

	
12

		
Section 4.3

	
Qualification

	
12

		
Section 4.4

	
Litigation

	
12

		
Section 4.5

	
No Brokers

	
12

	 	
	
ARTICLE V REPRESENTATIONS AND WARRANTIES OF SHENTEL

	
12

		
Section 5.1

	
Organization and Authority; Non-Contravention

	
13

		
Section 5.2

	
No Conflicts

	
13

		
Section 5.3

	
FCC Matters

	
13

		
Section 5.4

	
Compliance with Laws

	
16

		
Section 5.5

	
Shentel Entities

	
16

		
Section 5.6

	
Litigation

	
16

		
Section 5.7

	
Agreements, Contracts and Commitments

	
16

		
Section 5.8

	
Brokers

	
17

	 	
	
ARTICLE VI COVENANTS AND AGREEMENTS

	
17

		
Section 6.1

	
Covenants and Agreements

	
17

		
Section 6.2

	
Other Commercial Arrangements

	
20

		
Section 6.3

	
Notice of Certain Events

	
24

		
Section 6.4

	
Confidentiality

	
24

		
Section 6.5

	
Further Assurances

	
24

		
Section 6.6

	
Updated Schedules

	
24

		
Section 6.7

	
Due Diligence; Access to Employees

	
25

		
Section 6.8

	
Equipment Receivables.

	
25

		
Section 6.9

	
Amendment of Certain Agreements

	
28

		
Section 6.10

	
Lease Assignment and Termination

	
28

		
Section 6.11

	
Migration Plan

	
28

		
Section 6.12

	
Services Receivables.

	
28

 

	
ARTICLE VII CONDITIONS TO CLOSING

	
28

		
Section 7.1

	
Conditions to the Obligations of Shentel

	
28

		
Section 7.2

	
Conditions to the Obligations of Sprint

	
29

	 		
	
ARTICLE VIII TERMINATION

	
30

		
Section 8.1

	
Termination

	
30

		
Section 8.2

	
Effect of Termination

	
31

	 	
	
ARTICLE IX SURVIVAL AND INDEMNIFICATION

	
31

		
Section 9.1

	
Survival

	
31

		
Section 9.2

	
Indemnification by Shentel

	
32

		
Section 9.3

	
Indemnification by Sprint

	
32

		
Section 9.4

	
Remedies

	
32

	 	
	
ARTICLE X MISCELLANEOUS

	
33

		
Section 10.1

	
Assignment

	
33

		
Section 10.2

	
Notices

	
33

		
Section 10.3

	
Applicable Law

	
34

		
Section 10.4

	
Entire Agreement; Amendment and Waivers

	
34

		
Section 10.5

	
Counterparts

	
34

		
Section 10.6

	
Invalidity

	
35

		
Section 10.7

	
Headings

	
35

		
Section 10.8

	
Expenses

	
35

		
Section 10.9

	
Publicity

	
35

		
Section 10.10

	
No Third Party Beneficiaries

	
35

		
Section 10.11

	
Waiver of Jury Trial

	
35

Exhibits

	
Exhibit A

	
Spectrum Assignment Documentation

	
Exhibit B

	
Assignment and Assumption Agreement

	
Exhibit C

	
Termination Agreement

 

MASTER AGREEMENT

 

THIS MASTER AGREEMENT (this “Agreement”) is made as of August 10, 2015, by and among SprintCom, Inc., a Kansas corporation (“Sprint”), and Shenandoah Personal Communications, LLC, a Virginia limited liability company (“Shentel”).  Sprint and Shentel are individually referred to in this Agreement as a “Party” and collectively as the “Parties.”  Capitalized terms used herein without definition have the meanings ascribed to such terms in Article I.

 

RECITALS

 

WHEREAS, pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”), dated as of August 10, 2015, by and among Shenandoah Telecommunications Company, a Virginia corporation (“Parent”), Gridiron Merger Sub, Inc., a Delaware corporation and wholly-owned, direct subsidiary of Parent (“Merger Sub”), and NTELOS Holdings Corp., a Delaware corporation (“nTelos”), Merger Sub will merge with and into nTelos, with nTelos surviving the merger as a wholly-owned, direct subsidiary of Parent (the “Merger”);

 

WHEREAS, as a result of the Merger, Parent, through its wholly-owned subsidiaries, will hold (i) certain licenses for wireless communications services in the service territory served by nTelos prior to the effective time of the Merger (the “Effective Time”), as such territory is more particularly described in Exhibit A of the Shentel Affiliate Addendum (the “Former nTelos Service Area”), and (ii) assets, business and Subscribers in the Former nTelos Service Area (collectively, the “nTelos Business”);

 

WHEREAS, the existing business relationship between Shentel and Sprint is governed by, among other agreements, the Management Agreement and the Services Agreement (collectively, as amended, the “Shentel Affiliate Agreements”); and

 

WHEREAS, Shentel and Sprint desire to (i) make certain adjustments in their relationship and obligations to each other with respect to Shentel’s wireless communications business, and (ii) engage in the other transactions as contemplated herein.

 

NOW, THEREFORE, in consideration of the premises and the mutual representations, warranties, covenants, conditions and agreements hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.1                   Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:

 

“Active Sprint Affiliate Subscriber” means a Converted nTelos Affiliate Subscriber that, as of the Determination Date, (i) for a post-paid Subscriber, is not more than 90 days overdue on 

payment to Sprint and (ii) for a pre-paid Subscriber, has available units or an additional purchase of units has occurred within a sixty (60) day period ending with the Determination Date.

 

“Active Sprint Retail Subscriber” means a Converted nTelos Retail Subscriber that, as of the Retail Determination Date, (i) for a post-paid Subscriber, is not more than 90 days overdue on payment to Sprint and (ii) for a pre-paid Subscriber, has available units or an additional purchase of units has occurred within a sixty (60) day period ending with the Retail Determination Date.

 

“Affiliate” shall mean, with respect to any Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with that Person.  For purposes of this definition, “control” (including the terms “controlling” and “controlled”) means the power to direct or cause the direction of the management and policies of a Person, directly or indirectly, whether through the ownership of equity interests, by contract or otherwise.  For all purposes of this Agreement, following the Merger nTelos shall be deemed to be an Affiliate of Shentel.

 

“Amended and Restated Resale Agreement” shall mean the Amended and Restated Resale Agreement, dated as of May 1, 2014, by and among West Virginia PCS Alliance, L.C., Virginia PCS Alliance, L.C., NTELOS Inc., Sprint Spectrum L.P., and certain Affiliates of Sprint.

 

“Business Day” shall mean any day, other than Saturday or Sunday, on which commercial banks and foreign exchange markets are open for business in the State of New York.

 

“Communications Act” shall mean the Communications Act of 1934, as amended from time to time.

 

“Consent” shall mean all Governmental Authorizations and consents, registrations, approvals, permits, authorizations or waivers of other third parties.

 

“Converted nTelos Affiliate Subscribers” shall mean the sum of (i) X plus (ii) Y, where:

 

X = those Subscribers who are Former nTelos Affiliate Customers that satisfy the following criteria as of the Determination Date: (i) the Subscriber’s MDN has been provisioned onto Sprint’s platform; (ii) Sprint has the capability to invoice all the Subscriber’s usage after provisioning; (iii) Sprint has the capability to manage billing, customer care, and all other aspects of the customer relationship with the Subscribers, in accordance with the Shentel Affiliate Agreements; and (iv) the Subscriber’s MDN, CPNI, and account information is no longer active or available on any nTelos or Shentel platform or back office system, but is in Sprint’s possession, custody, and control consistent with the Shentel Affiliate Agreements.

 

Y = each other Subscriber on the Sprint billing platform as of the Determination Date who is Homed to the Former nTelos Service Area and who became a Subscriber at any time after the Closing Date (excluding, for the avoidance of doubt, (i) any Sprint/nTelos Subscribers and (ii) any Former nTelos Customers).

 

2

“Converted nTelos Retail Subscribers” shall mean those Subscribers who are Former nTelos Retail Customers, except for those Former nTelos Retail Customers Homed to the geographic areas covered by the NPA-NXXs set forth on Schedule I, that satisfy the following criteria as of the Retail Determination Date: (i) the Subscriber’s MDN has been provisioned onto Sprint’s platform; (ii) Sprint has the capability to invoice all the Subscriber’s usage after provisioning; and (iii) Sprint has the capability to manage billing, customer care, and all other aspects of the customer relationship with the Subscribers.

 

“CPNI” shall mean customer proprietary network information.

 

“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 

“FCC” shall mean the Federal Communications Commission.

 

“FCC Consents” shall mean the Consents issued or granted by the FCC required to effect the transactions and specified in Section 6.1(b) of this Agreement.

 

“FCC Licenses” shall mean all licenses and authorizations issued by the FCC with respect to the spectrum that Sprint and its Affiliates may use to provide wireless communication services held by nTelos prior to the Closing related to the Former nTelos Service Area as set forth on Schedule II attached hereto.

 

“FCC Rules” shall mean the rules and regulations established by the FCC pursuant to the Communications Act, as amended from time to time, together with all orders and public notices of the FCC.

 

“Final Order” shall mean an action or decision that has been granted by the FCC as to which (i) no request for a stay or similar request is pending, no stay is in effect, the action or decision has not been vacated, reversed, set aside, annulled or suspended and any deadline for filing such request that may be designated by statute or regulation has passed, (ii) no petition for rehearing or reconsideration or application for review is pending and the time for the filing of any such petition or application has passed, (iii) the FCC does not have the action or decision under reconsideration on its own motion and the time within which it may effect such reconsideration has passed, and (iv) no appeal is pending, including other administrative or judicial review, or in effect and any deadline for filing any such appeal that may be designated by statute or rule has passed.

 

“Former nTelos Affiliate Customers” shall mean, collectively, all of the Customers who are Homed to the Former nTelos Service Area.

 

“Former nTelos Customers” shall mean the Customers in the nTelos Footprint as of the Closing Date.  For the avoidance of doubt, the Former nTelos Customers shall comprise the Former nTelos Affiliate Customers and the Former nTelos Retail Customers as of the Closing Date.

 

“Former nTelos Retail Customers” shall mean, collectively, all of the Customers who are Homed to the NPA-NXXs covering the geographic areas set forth on Schedule III.

 

3

“Governmental Authorizations” shall mean any license, permit, certificate of authority, waiver, variance, order, operating rights, approval, certificate of public convenience and necessity, registration or other authorization, consent or clearance to construct or operate a facility, including any emissions, discharges or releases therefrom, or to transact an activity or business, to construct a tower, or to use an asset or process, in each case issued or granted by a Governmental Entity.

 

“Governmental Entity” shall mean any domestic or foreign governmental or regulatory authority, court, agency, department, division, commission, body or other legislative, executive or judicial governmental entity, including any subdivision thereof and any entity specifically designated by Law to administer, manage or oversee any governmental or regulatory program established under federal or state Law.

 

“Homed” shall mean, with respect to a Subscriber, the geographic area covered by such Subscriber’s NPA-NXX.

 

“HSR Act” shall mean the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended from time to time.

 

“Intercarrier Roamer Service Agreement” shall mean the Intercarrier Roamer Service Agreement, dated as of May 1, 2014, by and between Sprint Spectrum L.P., certain Affiliates of Sprint, and NTELOS Inc.

 

“Interference Consent” shall mean any agreement or arrangement between a Party and any Person, including any present or proposed PCS, cellular, or microwave system operator or any PCS, cellular, or microwave licensee, conditional licensee or applicant with respect to co-channel and/or adjacent channel interference, the coordination of adjacent market channel use or other matters concerned with the operation of adjacent markets, allowing interference, restricting station operations, licensing or location, or limiting transmission time.

 

“Intra-Company Lease” shall mean the intra-company spectrum lease between nTelos, Inc. and its subsidiary, West Virginia PCS Alliance, L.C.

 

“Knowledge” shall mean the actual knowledge, after reasonable inquiry, of any of Shentel’s executive officers.

 

“Law” shall mean all federal, state, local or non-U.S. laws, statutes, ordinances, codes, rules, regulations and decrees of Governmental Entities.

 

“Lien” shall mean pledges, liens, charges, mortgages, deeds of trust, restrictions, covenants, title retention agreements, options, leases, licenses, easements, encroachments, encumbrances and security interests of any kind or nature whatsoever.

 

“Management Agreement” shall mean the Sprint PCS Management Agreement, dated as of November 5, 1999, by and among Sprint Spectrum L.P., WirelessCo, L.P., Sprint Communications Company L.P., APC PCS, LLC, PhillieCo, L.P. and Shenandoah Personal Communications, LLC, as amended and supplemented from time to time.

 

4

“MDN” shall mean mobile device number.

 

“Net Service Fee” has the meaning ascribed to such term in the Services Agreement.

 

“nTelos Footprint” shall mean the territory covered by the following Basic Trading Areas (BTAs) identified by the FCC authorizations:  BTA #12 (Altoona, PA); BTA #23 (Athens, OH); BTA #35 (Beckley, WV); BTA #48 (Bluefield, WV); BTA #73 (Charleston, WV); BTA #75 (Charlottesville, VA); BTA #80 (Chillicothe, OH); BTA #82 (Clarksburg-Elkins, WV); BTA #100 (Cumberland, MD); BTA #104 (Danville, VA); BTA #137 (Fairmont, WV); BTA #179 (Hagerstown, MD-Chambersburg, PA-Martinsburg, WV); BTA #183 (Harrisonburg, VA); BTA #197 (Huntington, WV-Ashland, KY); BTA #259 (Logan, WV); BTA #266 (Lynchburg, VA); BTA #284 (Martinsville, VA); BTA #306 (Morgantown, WV); BTA #342 (Parkersburg, WV-Marietta, OH); BTA #359 (Portsmouth, OH); BTA #374 (Richmond-Petersburg, VA – only including Brunswick and Mecklenburg County, VA); BTA #376 (Roanoke, VA); BTA # 430 (Staunton-Waynesboro, VA); BTA #471 (Wheeling, WV); BTA #474 (Williamson, WV – Pikeville, KY); BTA # 479 (Winchester, VA); and BTA #487 (Zanesville-Cambridge, OH).

 

“nTelos-Sprint Spectrum Leases” shall mean, collectively, (i) the Long-Term De Facto Spectrum Leasing Agreement, dated as of May 21, 2014, by and among Nextel Communications of the Mid-Atlantic, Inc., Nextel WIP License Corp., Nextel WIP Expansion Two Corp., Nextel License Holdings 1, Inc., and NTELOS Inc.; (ii) the Long-Term De Facto Spectrum Leasing Agreement, dated as of May 21, 2014, by and among APC PCS, LLC, WirelessCo, L.P., SprintCom, Inc., Nextel Communications of the Mid-Atlantic, Inc., Nextel License Holdings 4, Inc., Nextel License Holdings 1, Inc., and NTELOS Inc.; and (iii) the Long-Term De Facto Spectrum Leasing Agreement, dated as of May 21, 2014, by and among NSAC, LLC, Clearwire Spectrum Holdings, LLC, Clearwire Spectrum Holdings III, LLC, Alda Wireless Holdings, LLC, and NTELOS Inc.

 

“Other nTelos Spectrum Leases” shall mean, collectively, (i) the Amended and Restated MDS Lease Agreement, dated as of August 3, 2000, by and between John Dudeck and CFW Cable Inc.; (ii) the Amended and Restated MDS Lease Agreement, dated as of August 3, 2000, by and between Blake Twedt and CFW Cable Inc.; (iii) the Amended and Restated MDS Lease Agreement, dated as of August 3, 2000, by and between Ivan Nachman and CFW Cable Inc.; (iv) the Agreement, dated as of July 8, 1992, by and between Lynchburg City Schools and Charlottesville Quality Cable Operating Company, as amended by that certain Amendment and Renewal, dated as of June 2, 2004, by and between Lynchburg City Schools and NTELOS Cable Inc.; and (v) any extensions, renewals, replacements or similar modifications to any of the foregoing.

 

“Person” shall mean any individual, corporation (including any non-profit corporation), general or limited partnership, company, limited liability company, trust, joint venture, estate, association, organization or other entity or Governmental Entity or “group” (as defined in the Exchange Act).

 

“Proceeding” shall mean any investigation, action, arbitration, proceeding, litigation or suit (whether civil, criminal or administrative) commenced, brought, conducted or heard by or before, or otherwise involving, any Governmental Entity or arbitrator.

 

5

“Services Agreement” shall mean the Sprint PCS Services Agreement, dated as of November 5, 1999, by and between Sprint Spectrum L.P. and Shenandoah Personal Communications, LLC, as amended and supplemented from time to time.

 

“Subscriber” shall mean a customer with a unique NPA-NXX, provided that if a customer has more than one NPA-NXX, there shall be deemed to be a Subscriber for each unique NPA-NXX.

 

“Transfer” shall mean to sell, transfer, deliver, convey, assign or otherwise dispose of the applicable asset.

 

“Transactions” shall mean the transactions contemplated by this Agreement (excluding the Merger) and by each of the other Transaction Documents.

 

“Transaction Documents” shall mean, collectively, this Agreement and each of the documents referred to in Section 3.2.

 

In addition to the foregoing, the following terms shall have the meanings ascribed to them in the Sections or Articles identified below:

 

	
Term

	
Section/Article

	 	
	
Adverse Regulatory Condition

	
6.1(b)

	
Agreement

	
Preamble

	
Assignment and Assumption Agreement

	
6.2(c)(i)

	
Assignment Documentation

	
6.2(c)(i)

	
Assumed Liabilities

	
6.2(c)(ii)

	
Cap

	
2.1

	
Closing

	
3.1

	
Closing Date

	
3.1

	
Customer Agreements

	
6.2(c)(i)

	
Customer Assumed Liabilities

	
6.2(c)(ii)

	
Customers

	
6.2(c)(i)

	
Determination Date

	
2.2

	
Effective Time

	
Recitals

	
Enterprise Customer

	
6.2(c)(i)

	
Enterprise Customer Agreements

	
6.2(c)(i)

	
Equipment Receivables

	
6.8(a)

	
Equipment Receivables Payment Period

	
6.8(b)

	
Excluded Contract

	
6.2(c)(v)

	
Excluded Liabilities

	
6.2(c)(iii)

	
FAA

	
5.3(c)

	
FCC Applications

	
6.1(b)

	
First-Year Collected Amount

	
6.8(c)

	
First-Year Deficit True-Up Amount

	
6.8(d)(i)

	
First-Year Equipment Receivables Calculation

	
6.8(c)

	
Final Equipment Receivables Amount

	
6.8(e)

 

6

	
Final Equipment Receivables Calculation

	
6.8(e)

	
First-Year Surplus True-Up Amount

	
6.8(d)(ii)

	
First-Year Target Amount

	
6.8(d)(i)

	
First-Year True-Up Date

	
6.8(c)

	
Former nTelos Service Area

	
Recitals

	
Individual Customer

	
6.2(c)(i)

	
Losses

	
9.2

	
Merger

	
Recitals

	
Merger Agreement

	
Recitals

	
Merger Sub

	
Recitals

	
Migration Plan

	
6.11

	
Monthly Retainage Reduction

	
2.1

	
nTelos

	
Recitals

	
nTelos Business

	
Recitals

	
Original Equipment Receivables Amount

	
6.8(b)

	
Parent

	
Recitals

	
Parties

	
Preamble

	
Party

	
Preamble

	
Post-Closing Reimbursement Period

	
2.2(a)

	
Pre-Closing Services Receivables

	
6.12(a)

	
PUCs

	
4.2

	
Reduction Credit

	
2.1

	
Regulatory Condition

	
6.1(b)

	
Rejected Contract

	
6.2(c)(v)

	
Required Consent Contract

	
6.2(c)(iv)

	
Restrictive Contract

	
6.2(c)(v)

	
Retail Customer Transition Services Agreement

	
6.2(e)

	
Retail Determination Date

	
2.3

	
Retail Stores Transfer Agreement

	
6.2(f)

	
Retained Consent Contract

	
6.2(c)(iv)

	
Review Date

	
6.2(c)(iv)

	
Services Receivables

	
6.12(a)

	
Shentel

	
Preamble

	
Shentel Affiliate Addendum

	
6.2(a)

	
Shentel Affiliate Agreements

	
Recitals

	
Shentel Disclosure Schedule

	
V

	
Shentel Entities

	
5.3(a)

	
Shentel Entity

	
5.3(a)

	
Shentel Indemnified Persons

	
9.3

	
Shentel Report

	
2.3(a)

	
Spectrum Assignment Documentation

	
6.2(b)(i)

	
Spectrum Assumed Liabilities

	
6.2(b)(ii)

	
Sprint

	
Preamble

	
Sprint Equipment Receivables Payment

	
6.8(b)

	
Sprint Indemnified Persons

	
9.2

	
Sprint Monthly Retainage Amounts

	
2.1

 

7

	
Sprint/nTelos Subscribers

	
6.2(c)(ix)

	
Sprint Report

	
2.3(b)

	
Termination Agreement

	
6.2(d)

	
Updated Schedules

	
6.6

 

Section 1.2                  Interpretation.  Interpretation of this Agreement shall be governed by the following rules of construction:  (i) words of the singular shall be held to include the plural and vice versa, and words of one gender shall be held to include the other gender as the context requires; (ii) references to the terms Article, Section and paragraph are references to the Articles, Sections and paragraphs to this Agreement unless otherwise specified; (iii) the terms “hereof,” “herein,” “hereby,” “hereto” and derivative or similar words refer to this entire Agreement, including the Shentel Disclosure Schedule and the other schedules and exhibits hereto; (iv) references to “$” shall mean U.S. dollars; (v) the word “including” and words of similar import when used in this Agreement shall mean “including without limitation,” unless otherwise specified; (vi) the word “or” shall not be exclusive; (vii) references to “written” or “in writing” include in electronic form; (viii) provisions shall apply, when appropriate, to successive events and transactions; (ix) the headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement; (x) Sprint and Shentel have each participated in the negotiation and drafting of this Agreement and if an ambiguity or question of interpretation should arise, this Agreement shall be construed as if drafted jointly by the parties thereto and no presumption or burden of proof shall arise favoring or burdening either Party by virtue of the authorship of any of the provisions in this Agreement; (xi) a reference to any Person includes such Person’s successors and permitted assigns; (xii) any reference to “days” means calendar days unless Business Days are expressly specified; and (xiii) when calculating the period of time before which, within which or following which any act is to be done or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded, and, if the last day of such period is not a Business Day, the period shall end on the next succeeding Business Day.

 

ARTICLE II

MONTHLY RETAINAGE REDUCTION

 

Section 2.1                   Monthly Retainage Reduction. From and after the Closing, the monthly amounts that Sprint and its Affiliates are entitled to retain as a Prepaid Management Fee and/or a Fee Based on Billed Revenue (as those terms are defined in the Management Agreement) (collectively, the “Sprint Monthly Retainage Amounts”), shall be reduced (each such monthly reduction, a “Monthly Retainage Reduction”) by $4,200,000 (subject to adjustment pursuant to this Section 2.1, the “Cap”).  If a Sprint Monthly Retainage Amount is less than $4,200,000 (such shortfall, the “Reduction Credit”), then:

 

(a)               the applicable Monthly Retainage Reduction shall equal such Sprint Monthly Retainage Amount; and

 

(b)                the Reduction Credit shall, at Shentel’s option, be:

 

8

(i)             carried forward such that the Cap for the next succeeding month shall be increased by an amount equal to such Reduction Credit (it being understood that unused Reduction Credits shall accumulate and be carried forward with corresponding increases to the Cap until all such Reduction Credits have been realized through Monthly Retainage Reductions (or been offset pursuant to clause (ii) below), at which time the Cap shall be reduced to $4,200,000, subject to further adjustment pursuant hereto), and/or

 

(ii)            deducted from any amount required to be paid by Shentel to Sprint pursuant to Section 2.2.

 

The Monthly Retainage Reductions shall be payable on a monthly basis to “Manager” under Section 10.12 of the Management Agreement, until such time as the aggregate Monthly Retainage Reductions equal $251,800,000.  For the avoidance of doubt, the Cap shall never be lower than $4,200,000.  Schedule 2.1 sets forth examples of the calculations and adjustments contemplated by this Section 2.1.

 

Section 2.2                   Shentel Reimbursement.  If, on the 180th day following the Closing Date (or if such date is not a Business Day, on the first Business Day after such 180th day) (the “Determination Date”),

 

(a)                the number of Active Sprint Affiliate Subscribers is less than seventy-five percent (75%) of the higher of (i) the number of Former nTelos Affiliate Customers and (ii) 271,900, then Shentel shall pay to Sprint One Million Dollars ($1,000,000) per month for twenty-four (24) months (the “Post-Closing Reimbursement Period”), or

 

(b)                the number of Active Sprint Affiliate Subscribers is more than seventy-five percent (75%) but less than eighty-five percent (85%) of the higher of (i) the number of Former nTelos Affiliate Customers and (ii) 271,900, then Shentel shall pay to Sprint Five Hundred Thousand Dollars ($500,000) per month during the Post-Closing Reimbursement Period.

 

If a payment is required pursuant to Sections 2.2(a) or 2.2(b), the first payment shall be due within ten (10) days after the Parties shall have agreed on the number of Active Sprint Affiliate Subscribers pursuant to Section 2.4 and each subsequent payment shall be due and payable on the first Business Day of each calendar month during the Post-Closing Reimbursement Period, subject to Section 2.1(b).

 

Section 2.3                  Sprint Payment for Active Sprint Retail Subscribers.  The Parties shall agree on the number and prepaid/postpaid status of the Former nTelos Retail Customers pursuant to Section 2.4(a).  Sprint shall pay to Shentel in cash, within thirty (30) days after the Retail Determination Date (as defined below), an amount equal to the sum of (i) $175 for each postpaid Active Sprint Retail Subscriber plus (ii) $50 for each prepaid Active Sprint Retail Subscriber.  “Retail Determination Date” shall mean the date on which the migration of the Former nTelos Retail Customers to the Sprint billing platform is complete.

 

9

Section 2.4                   Reporting and Audit Rights.

 

(a)                Shentel shall, within thirty (30) days following the Closing Date, deliver to Sprint a report setting forth the number of Former nTelos Affiliate Customers and the number and prepaid/postpaid status of Former nTelos Retail Customers as of the Closing Date (the “Shentel Report”).  The Shentel Report shall include supporting documentation used by Shentel in the preparation of the Shentel Report.  Sprint shall have the right, subject to applicable Law, during the fifteen (15) days following its receipt of the Shentel Report and at its sole cost and expense, to audit, or to cause its employees or representatives to audit, Shentel’s books, records and other documents (including computer files) as necessary to verify the number of Former nTelos Affiliate Customers and the number and prepaid/postpaid status of Former nTelos Retail Customers as of the Closing Date.  Shentel shall reasonably cooperate with Sprint in conducting such audit.  In the event that Sprint disputes the Shentel Report, the Parties shall negotiate in good faith to resolve any such dispute as promptly as reasonably practical.

 

(b)                Sprint shall (I) within ten (10) days following the Retail Determination Date, deliver to Shentel a report setting forth the number and prepaid/postpaid status of Active Sprint Retail Subscribers as of the Retail Determination Date, and (II) within ten (10) days following the Determination Date, deliver to Shentel a report setting forth the number and percentage of Active Sprint Affiliate Subscribers as of the Determination Date (each, a “Sprint Report”).  Each Sprint Report shall include supporting documentation used by Sprint in the preparation of such Sprint Report.  Shentel shall have the right, subject to applicable Law, during the fifteen (15) days following its receipt of each Sprint Report and at its sole cost and expense, to audit, or to cause its employees or representatives to audit, Sprint’s books, records and other documents (including computer files) as necessary to verify (i) the number and prepaid/postpaid status of Active Sprint Retail Subscribers as of the Retail Determination Date and (ii) the number of Converted nTelos Affiliate Subscribers and the number and percentage of the Active Sprint Affiliate Subscribers as of the Determination Date, as applicable.  Sprint shall reasonably cooperate with Shentel in conducting such audit.  In the event that Shentel disputes a Sprint Report, the Parties shall negotiate in good faith to resolve any such dispute as promptly as reasonably practical.

 

ARTICLE III

CLOSING

 

Section 3.1                  Time and Place.  Upon the terms and subject to the satisfaction or waiver by the appropriate Party of the conditions set forth in Article VII, the consummation of the Transactions (the “Closing”) shall take place at the Richmond, Virginia, offices of Hunton & Williams LLP; provided, however, that, subject to the satisfaction or waiver of the Closing conditions in Sections 7.1 and 7.2, unless the Parties agree otherwise, the Closing shall occur on the same date and at the same time as the Effective Time. The date on which the Closing occurs is called the “Closing Date.”

 

10

Section 3.2                  Deliveries.  Upon the terms and subject to the satisfaction or waiver by the appropriate Party of the conditions set forth in Article VII, the Parties shall take the following actions on the Closing Date:

 

(a)           Sprint shall execute and deliver to Shentel:

 

(i)             the documents required to be delivered by Sprint at the Closing pursuant to Section 6.2; and

 

(ii)            the certificates and other documents required to be delivered by Sprint at or prior to Closing under Section 7.1.

 

(b)           Shentel and nTelos shall execute and deliver to Sprint:

 

(i)             the documents required to be delivered by Shentel and nTelos at the Closing pursuant to Section 6.2; and

 

(ii)            the certificates and other documents required to be delivered by Shentel at or prior to Closing under Section 7.2.

 

Section 3.3                   Procedure.  At the Closing, the Parties will exchange copies of the Transaction Documents and signature pages thereto by facsimile, .pdf or other appropriate electronic means, the receipt of which will be confirmed by telephone.  The Closing shall be deemed to occur as of 12:01 a.m. on the Closing Date.  Each Party will deliver, upon request, to the other Party such other documents as the other Party may reasonably request for the purpose of (i) evidencing the accuracy of such Party’s representations and warranties hereunder, (ii) evidencing the performance of such Party of, or the compliance by such Party with, any covenant or obligation required to be performed or complied with by such Party hereunder or (iii) otherwise facilitating the consummation or performance of the Transactions.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SPRINT

 

Sprint hereby represents and warrants to Shentel as follows:

 

Section 4.1                   Organization and Authority; Non-Contravention.  Sprint is duly incorporated, validly existing and in good standing under the laws of the State of Kansas, has all requisite corporate power and authority, and has taken all corporate action necessary in order to execute, deliver and perform its obligations under this Agreement. This Agreement, and the Transaction Documents to which Sprint is a party, constitute legal, valid and binding obligations of Sprint, enforceable against it in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles. Neither the execution, delivery and performance by Sprint of this Agreement or the other Transaction Documents to which Sprint is a party, nor the consummation of the Transactions will (i) conflict with, or result in a breach or violation of, any provision of Sprint’s organizational agreements; (ii) except as set forth on Schedule 4.1 or Schedule 4.2 hereto, constitute, with or without the 

11

giving of notice or passage of time or both, a material breach, violation or default, create a material Lien, or give rise to any material right of termination, modification, cancellation, prepayment or acceleration, under (A) any Law or (B) any note, bond, mortgage, indenture, lease, agreement or other instrument, in each case which is applicable to or binding upon Sprint or any of its assets; or (iii) require any Consent other than the Governmental Authorizations contemplated in Section 4.2.

 

Section 4.2                  No Conflicts.  No Consent of, from or with, or notice to, any Governmental Entity is required to be obtained or made by or with respect to Sprint in connection with the execution, delivery and performance of this Agreement or the consummation of the Transactions other than (i) compliance with and filings under the HSR Act, (ii) compliance with and filings under the Communications Act, including the FCC Rules, including the FCC Consents contemplated in Section 6.1(b), (iii) compliance with and filings under any applicable state public utility Laws and rules, regulations and orders of any state public utility commissions (“PUCs”) and rules, regulations and orders of any state regulatory bodies regulating telecommunications businesses and (iv) such Consents described on Schedule 4.2 hereto.

 

Section 4.3                   Qualification.  Sprint is legally qualified to (i) hold and receive FCC licenses generally, (ii) hold and receive the FCC Licenses (and the consummation of the Transactions will not cause Sprint to be ineligible to hold the FCC Licenses), and (iii) receive any authorization or approval from any state or local regulatory authority necessary for it to acquire the FCC Licenses. Sprint is in compliance with Section 310(b) of the Communications Act and all rules, regulations or policies of the FCC promulgated thereunder with respect to alien ownership.

 

Section 4.4                  Litigation.  There are no civil, criminal or administrative claims, actions, suits, demands, arbitrations, Proceedings or investigations pending or threatened against Sprint or any of its Affiliates, at law, in equity or otherwise, in, before, or by, any court, Governmental Entity, arbitrator or other governmental or regulatory official, body or authority that seeks to enjoin this Agreement or the Transactions or otherwise prevent Sprint from performing its obligations under this Agreement or consummating the Transactions. There is no judgment, decree, injunction, rule, order, writ, decree or award of any court, Governmental Entity, arbitrator or other governmental or regulatory official, body or authority outstanding against Sprint or any of its Affiliates, and there are no unsatisfied judgments against Sprint or any of its Affiliates, in each case, that would have a material adverse effect on Sprint’s ability to consummate the Transactions.

 

Section 4.5                  No Brokers.  Sprint has not employed any broker, finder or investment banker or incurred any liability for any brokerage fees, commissions or finder’s fees in connection with the Transactions.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF SHENTEL

 

Shentel hereby represents and warrants to Sprint as follows, except as set forth in the disclosure schedule hereto (the “Shentel Disclosure Schedule”), which Shentel Disclosure

12

Schedule is arranged in paragraphs corresponding to the numbered and lettered paragraphs contained in this Article V:

 

Section 5.1                  Organization and Authority; Non-Contravention.  Shentel is a limited liability company and is duly organized, validly existing and in good standing under the laws of the Commonwealth of Virginia, has all requisite power and authority, and has taken all action necessary in order to execute, deliver and perform its obligations under this Agreement. This Agreement, and the other Transaction Documents to which Shentel is a party, constitute legal, valid and binding obligations of Shentel, enforceable against Shentel in accordance with their respective terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability relating to or affecting creditors’ rights and to general equity principles. Neither the execution, delivery and performance by Shentel of this Agreement or the other Transaction Documents to which Shentel is a party, nor the consummation of the Transactions will (i) conflict with, or result in a breach or violation of, any provision of any of Shentel’s organizational agreements; (ii) except as set forth in Section 5.1 or Section 5.2 of the Shentel Disclosure Schedule, constitute, with or without the giving of notice or passage of time or both, a material breach, violation or default, create a material Lien, or give rise to any material right of termination, modification, cancellation, prepayment or acceleration, under (A) any Law or (B) any note, bond, mortgage, indenture, lease, agreement or other instrument, in each case which is applicable to or binding upon Shentel or its assets; or (iii) require any Consent, other than the Governmental Authorizations contemplated in Section 5.2.

 

Section 5.2                  No Conflicts.  No Consent of, from or with, or notice to, any Governmental Entity is required to be obtained or made by or with respect to Shentel in connection with the execution, delivery and performance of this Agreement or the consummation of the Transactions other than (i) compliance with and filings under the HSR Act, (ii) compliance with and filings under the Communications Act, including the FCC Rules, including the FCC Consents contemplated in Section 6.1(b), (iii) compliance with and filings under any applicable state public utility Laws and rules, regulations and orders of any state PUCs and rules, regulations and orders of any state regulatory bodies regulating telecommunications businesses and (iv) such other Consents as are set forth in Section 5.2 of the Shentel Disclosure Schedule.

 

Section 5.3                   FCC Matters.

 

(a)                Section 5.3(a) of the Shentel Disclosure Schedule sets forth each Person (each, a “Shentel Entity” and, collectively, the “Shentel Entities”) who, as of the Effective Time and after giving effect to the Merger, will be the exclusive holder of the FCC Licenses set forth opposite its name in such Section.  For each FCC License, Section 5.3(a) of the Shentel Disclosure Schedule sets forth, as of the Effective Time, (i) the FCC registration number or name of the licensee, (ii) the FCC call sign, license number or other license identifier, (iii) the geographic area for which the Shentel Entities are authorized to provide service, (iv) the current expiration date, (v) the frequency block (except for microwave licenses and Section 214 authorizations), (vi) where applicable, the relevant market and service designations used by the FCC, and (vii) if applicable, the application number of any pending application related to the FCC License.  As of the Effective Time, the FCC Licenses will constitute all the licenses and authorizations from the FCC for the business operations of the Shentel Entities (or nTelos or its applicable 

13

Affiliates, as the case may be) as they are currently being conducted in the Former nTelos Service Area.  As of the Effective Time, there will not be any condition outside of the ordinary course imposed on any of the FCC Licenses by the FCC (including any condition on the grant of a renewal application) that is not disclosed on the face of the reference copy of the FCC License in the FCC’s Universal Licensing System database; provided, that “ordinary course” shall mean any condition described in any federal statutes, FCC Rules or similar sources that apply generally to FCC licenses of the same service or any condition that the FCC routinely imposes upon the grant of applications for similar licenses.

 

(b)                As of the Effective Time, (i) each FCC License will have been granted pursuant to a Final Order by the FCC to be held by the licensee listed in Section 5.3(a) of the Shentel Disclosure Schedule, will be valid and in full force and effect, and will have not been suspended, revoked, cancelled, terminated or forfeited or adversely modified; (ii) there will be no proceeding pending before the FCC or any other Governmental Entity (and no pending judicial review of such a proceeding) or, to the Knowledge of Shentel, threatened by any Person with respect to any FCC License that would, individually or in the aggregate, reasonably be likely to result in the suspension, revocation, cancellation, termination, forfeiture, or adverse modification of any FCC License; and (iii) to the Knowledge of Shentel, no event, condition or circumstance will exist or, after notice or lapse of time or both, would exist that would constitute a breach of, or default under, the terms and conditions of any FCC License that would preclude any FCC License from being renewed in the ordinary course (to the extent that such FCC License is renewable by its terms) or could reasonably be expected to place such FCC license at risk of suspension, revocation, cancellation, termination, forfeiture or modification.

 

(c)                As of the Effective Time, each of the Shentel Entities will be in compliance in all material respects with the terms of the FCC Rules and any other Laws that apply to, or that are contained in, each FCC License and will have timely fulfilled and performed all of its obligations with respect thereto in all material respects, including making all reports, filings, notifications and applications to the FCC, except for such reports, filings, notifications and applications that are not material to Shentel’s business in the Former nTelos Service Area.  As of the Closing, Shentel will have made available to Sprint true and complete copies of each such material report, filing, notification and application, including ownership reports and regulatory fee filings, in its possession and filed by nTelos or its applicable Affiliates in the last three (3) years, with the exception of those reports, filings, notifications and applications that are available in their entirety in the FCC’s Universal Licensing System database.  As of the Effective Time, neither Shentel nor any Shentel Entity will have received written notice of, incurred, or if incurred, Shentel or the applicable Shentel Entity will have fully discharged, any audit, investigation, inquiry, fine, charge or other liability resulting from any noncompliance prior to the Closing relating to such reports, filings, notifications and applications, or any other obligation arising under the Communications Act, FCC Rules or any other Laws that apply to, or that are contained in, each FCC License.  As of the Effective Time, Shentel or the applicable Shentel Entity will have timely made the payment of all regulatory fees and contributions to the FCC, the United States Treasury or any other

14

Governmental Entity with respect to any FCC License or which are otherwise required by the FCC Rules, including Universal Service Fund and TRS Fund contributions.  As of the Effective Time, no payment will be owed to the FCC or any other Governmental Entity with respect to any FCC License, or any other obligation arising under the Communications Act or FCC Rules.  As of the Closing, Shentel and each Shentel Entity will have received all necessary regulatory approvals, made all filings, tower registrations, radio frequency emission certifications, state and tribal historic preservation officers certifications or letters and other reports required to be obtained or made by such Person relating to the operation of towers, including those necessary to comply with all of the rules, regulations and policies of the Federal Aviation Administration (“FAA”) and all other Laws governing the construction, marking and lighting of antenna structures and colocation activities, including FAA and FCC tower registration filing requirements, except for such approvals, filings, registrations, certifications, letters or reports that are not material to the operation of Shentel’s business in the Former nTelos Service Area.  As of the Closing, Shentel will have all documentation in its possession or reasonably ascertainable by Shentel supporting such approvals, filings, registrations and certifications, except such approvals, filings, registrations and certifications the absence of which would not, individually or in the aggregate, reasonably be likely to materially adversely affect the business of Shentel in the Former nTelos Service Area.  As of the Closing, except as contemplated by Section 6.1, there will be no investigations, inquiries, enforcement proceedings, orders or other actions pending (or, to the Knowledge of Shentel, threatened) by the FAA, the FCC or any similar Governmental Entity with respect to the FCC Licenses or the conduct of the business.

 

(d)               As of the Effective Time, there will be no pending or planned application by Shentel or any Shentel Entity to modify any FCC License.  As of the Effective Time, except as listed in Section 5.3(d) of the Shentel Disclosure Schedule, neither Shentel nor any Shentel Entity will have (i) entered into any field-strength agreements or otherwise granted any Interference Consents with respect to any of the spectrum that is the subject of any of the FCC Licenses or (ii) waived or relinquished any right or claim with respect to any of the spectrum that is the subject of any FCC License.

 

(e)                As of the Effective Time, except as listed in Section 5.3(e) of the Shentel Disclosure Schedule, neither Shentel nor any Shentel Entity will lease or license any FCC Licenses to or from any Person (other than leases solely among Shentel and/or any Shentel Entity).

 

(f)                 As of the Effective Time, no Shentel Entity or any Affiliate thereof will have entered into any obligation, agreement, arrangement or understanding to Transfer the FCC Licenses.

 

(g)                As of the Effective Time, all build out and coverage requirements under 47 C.F.R. § 24.203 or § 27.14(o) in respect of the FCC Licenses subject to those rules that have become due will have been satisfied in full and on a timely basis, and certification of such buildout, coverage and substantial service will have been made to the FCC.

 

15

Section 5.4                  Compliance with Laws.  As of the Closing, neither Shentel nor any Affiliate thereof will be in conflict with, or in default or violation of, in any material respect, any Laws applicable to the FCC Licenses.  Neither Shentel nor any Affiliate thereof has received notice of any formal or informal complaint or order filed against Shentel or any Affiliate thereof alleging any material non-compliance by Shentel or any Affiliate thereof with respect to any such Laws, in each case to the extent applicable to the operation of the FCC Licenses.

 

Section 5.5                  Shentel Entities.  Except as set forth in Section 5.5 of the Shentel Disclosure Schedule, as of the Effective Time, Parent, directly or indirectly, will beneficially own all of the outstanding equity interests of each Shentel Entity.

 

Section 5.6                  Litigation.  There are no civil, criminal or administrative claims, actions, suits, demands, arbitrations, Proceedings or investigations pending or, to the Knowledge of Shentel, threatened against Shentel or any Affiliate thereof that seeks to enjoin this Agreement or the Transactions or otherwise prevent Shentel from performing its obligations under this Agreement or the other Transaction Documents or consummating the Transactions. There is no judgment, decree, injunction, rule, order, writ, decree or award of any court, Governmental Entity, arbitrator or other governmental or regulatory official, body or authority outstanding against Shentel or any Affiliate thereof, and there are no unsatisfied judgments against Shentel or any Affiliates thereof, in each case that would have a material adverse effect on Shentel’s ability to consummate the Transactions.

 

Section 5.7                   Agreements, Contracts and Commitments.

 

(a)                 The Customer Agreements for Individual Customers generally conform to the standard terms and conditions contained in nTelos’s “form customer agreement” for Individual Customers, a copy of which has been provided to Sprint, except for variations to such standard terms and conditions that are not, individually or in the aggregate, material to the nTelos Business.

 

(b)                As of the Closing, each Customer Agreement and each Other nTelos Spectrum Lease (other than any Other nTelos Spectrum Lease that is terminated or expired as of the Closing) will be a valid, binding and enforceable obligation of nTelos or its applicable Affiliate, and, to the Knowledge of Shentel, each other party thereto, in each case, in accordance with the terms of such Customer Agreement or Other nTelos Spectrum Lease, except where the failure to be so valid, binding and enforceable would not, in the aggregate, be material to the nTelos Business, and subject to the effect of any applicable Laws, including bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or preferential transfers, or similar Laws relating to or affecting creditors’ rights generally and subject, as to enforceability, to the effect of general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

(c)                 As of the Closing, nTelos or its applicable Affiliate will not be nor, to the Knowledge of Shentel, will any other party to a Customer Agreement or an Other nTelos Spectrum Lease (other than any Other nTelos Spectrum Lease that is terminated or expired as of the Closing) be, in default or breach of such Customer Agreement or Other 

16

nTelos Spectrum Lease, except for past due amounts or other breaches that are not, individually or in the aggregate, material to the nTelos Business after taking into account the allowance for doubtful accounts in nTelos’s publicly-filed consolidated financial statements, including the footnotes thereto.

 

(d)                 Except for the Required Consent Contracts or as otherwise disclosed in Section 5.7(d) of the Shentel Disclosure Schedule, neither the execution, delivery and performance by Shentel of the Transaction Documents to which it is or shall be a party, nor the consummation of the Transactions to which it is a party, will constitute, with or without the giving of notice or passage of time or both, a material breach, violation or default by it, create a Lien, or give rise to any right of termination, modification, cancellation, prepayment, acceleration or recapture, or a material loss of rights, under any of the Customer Agreements or any Other nTelos Spectrum Lease (other than any Other nTelos Spectrum Lease that is terminated or expired as of the Closing).

 

Section 5.8                  Brokers.  Shentel has not employed any broker, finder or investment banker or incurred any liability for any brokerage fees, commissions or finder’s fees in connection with the Transactions other than Moelis & Company LLC, whose fees are the responsibility of Shentel.

 

ARTICLE VI

 

COVENANTS AND AGREEMENTS

 

Section 6.1                   Covenants and Agreements.

 

(a)                 Except as may be otherwise permitted by this Agreement, each of the Parties shall use its respective commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other Party in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Transactions, including (i) obtaining all necessary Consents from Governmental Entities and the making of all necessary registrations and filings and the taking of all reasonable steps as may be necessary to obtain any necessary Consent from, or to avoid a Proceeding by, any Governmental Entity (including under the HSR Act and the FCC Rules) and (ii) executing and delivering any additional instruments necessary to consummate the Transactions and to fully carry out the purposes of this Agreement.  To the extent not prohibited by applicable Law or any Governmental Entity, upon the terms and subject to the conditions set forth in this Agreement, each Party shall keep the other Party reasonably apprised of the status of matters relating to the completion of the Transactions and shall work cooperatively with the other in connection with obtaining all required Consents of any Governmental Entity, including (A) promptly notifying the other of, and, if in writing, furnishing the other with copies of (or, in the case of material oral communications, advising the other orally of) any material communications from or with any Governmental Entity with respect to any of the Transactions, (B) permitting the other Party to review and discuss in advance, and considering in good faith the views of the other in connection with, any proposed written (or any material proposed oral) 

17

communication with any such Governmental Entity, (C) promptly notifying the other Party of any meeting with any such Governmental Entity, (D) furnishing the other Party with copies of all substantive correspondence, filings and communications (and memoranda setting forth the substance thereof) between it and any such Governmental Entity with respect to this Agreement, and (E) cooperating with the other to furnish the other Party with such necessary information and reasonable assistance as the other Party may reasonably request in connection with the Parties’ mutual cooperation in preparing any necessary filings or submissions of information to any such Governmental Entity.

 

(b)                Subject to the terms and conditions herein provided and without limiting the foregoing, each of the Parties shall (i) within fifteen (15) days of the date hereof, make their respective filings and thereafter make any other required submissions under the HSR Act, (ii) within fifteen (15) days (which will be extended as necessary to comply with the procedural requirements of Section 6.1(a) hereof) of the date hereof, file all such applications (the “FCC Applications”) as are required to be filed with the FCC to obtain the FCC’s approval for the Transactions and respond as promptly as practicable to any additional requests for information received from the FCC by any Person to an FCC Application, and (iii) promptly following the filing of the FCC Applications, file all such applications as are required to be filed with any PUC to obtain the PUC’s approval for the Transactions and respond as promptly as practicable to any additional requests for information received from the PUC by any Person to an FCC Application.  Each of the Parties shall use its respective commercially reasonable efforts to cooperate with each other in (x) determining whether any filings are required to be made with, or consents, permits, authorizations or approvals are required to be obtained from, any third parties or other Governmental Entities in connection with the execution and delivery of this Agreement and the consummation of the Transactions, (y) timely making all such filings and timely seeking all such consents, permits, authorizations or approvals, and (z) taking all such reasonable action as may be necessary to resolve such objections, if any, as the FCC, the Federal Trade Commission, the Antitrust Division of the Department of Justice, state antitrust enforcement authorities or competition authorities of any other jurisdiction or any other person may assert under relevant FCC, antitrust or competition laws with respect to the Transactions; provided, however, that except as provided in Section 6.1(d), nothing in this Agreement shall require, or be construed to require, Shentel or Sprint to proffer, agree or consent to (A) sell, divest, lease, license, transfer, dispose of or otherwise encumber or hold separate, whether before or after the Closing Date, any of its respective assets, properties, licenses, permits, operations, rights, product lines, businesses or interest therein or (B) any changes (including through a licensing arrangement), restriction or condition on, or other impairment of any of its respective ability to own or operate any assets, properties, licenses, operations, rights, product lines, businesses or interests therein (in each case, a “Regulatory Condition”), unless such Regulatory Condition would not, individually or in the aggregate, materially adversely affect such Party’s existing or projected business in the nTelos Footprint (in any such case, an “Adverse Regulatory Condition”). In addition, nothing in this Agreement shall require Shentel or any of its Affiliates to initiate any suit, action or Proceeding against any party to the Merger Agreement.

 

18

(c)                 In the event any Proceeding by any Governmental Entity or other Person is commenced that challenges the validity or legality of this Agreement or seeks damages or conditions in connection therewith, except as otherwise permitted by this Agreement or necessary to avoid violation of applicable Law, the Parties agree to cooperate with each other and take such commercially reasonable actions to attempt to satisfy the conditions to Closing set forth in Sections 7.1(a), 7.1(b), 7.2(a) and 7.2(b).

 

(d)                The Parties agree that a Regulatory Condition that requires Sprint or any of its Affiliates to sell, divest, lease, license, transfer, dispose of or otherwise encumber or hold separate or that imposes a change, restriction or condition on, or other impairment of, any of the spectrum set forth on Schedule 6.1(d)-1 hereto shall not constitute an Adverse Regulatory Condition under this Agreement.  If any Governmental Entity imposes a Regulatory Condition on Sprint or any of its Affiliates that requires the sale, divestiture, sublease, license, transfer or disposition of any spectrum, then Sprint shall first sell, divest, sublease, license, transfer or otherwise dispose of the spectrum set forth on Schedule 6.1(d)-2 hereto, but only to the extent necessary to obtain all required Consents of the FCC or other Governmental Entities.  If such disposal of the spectrum set forth on Schedule 6.1(d)-2 hereto is not sufficient to obtain all required Consents of the FCC or other Governmental Entities, Sprint shall then sell, divest, sublease, license, transfer or dispose of the other spectrum set forth on Schedule 6.1(d)-1 hereto, but only to the extent necessary to obtain all required Consents of the FCC or other Governmental Entities; provided, however, that if such sale, divestiture, sublease, license, transfer or disposition pursuant to a Regulatory Condition is of the spectrum set forth on Schedule 6.1(d)-3 hereto, then Shentel shall reimburse Sprint fifty percent (50%) of all Losses incurred or suffered by Sprint or its Affiliates arising out of such Regulatory Condition, including without limitation (i) fifty percent (50%) of the amount of any sales, divestitures, leases, licenses, transfers or other dispositions of such spectrum that is below the value ascribed to such spectrum in that certain Side Letter Regarding Valuation delivered by Sprint and accepted by Shentel as of the date hereof, and (ii) fifty percent (50%) of all other reasonable and documented out-of-pocket costs and expenses incurred in connection with compliance with such Regulatory Condition of the sale, divestiture, sublease, license, transfer or disposition of the spectrum in Schedule 6.1(d)-3, including without limitation (x) early termination fees and (y) reasonable and documented fees and expenses of attorneys, accountants, engineers and valuation experts; provided, further, that the amount of reimbursement by Shentel pursuant to this Section 6.1(d) shall not exceed Seven Million Five Hundred Thousand ($7,500,000).  In the event of a reimbursement required by this Section 6.1(d), Sprint shall provide Shentel with invoices and other reasonable documentation in support of its Losses.

 

(e)                 If any Governmental Entity imposes an Adverse Regulatory Condition on Sprint or any of its Affiliates, then such Adverse Regulatory Condition shall be subject to Sections 7.2(a) and (b).

 

19

Section 6.2                   Other Commercial Arrangements.  The Monthly Retainage Reductions are in consideration for the following items:

 

(a)                 Modification of Shentel Affiliate Agreements.  Contemporaneously herewith, the Parties shall execute and deliver to each other that certain addendum to the Shentel Affiliate Agreements (the “Shentel Affiliate Addendum”), which includes, but is not limited to, the following:

 

(i)             an expansion of the Shentel Service Area (as defined in the Shentel Affiliate Agreements) to include the nTelos Expansion Area (as defined in the Shentel Affiliate Agreements);

 

(ii)            the network build-out requirements outlined in Exhibits B and C of the Shentel Affiliate Addendum;

 

(iii)           modifications to the Net Service Fee; and

 

(iv)          a five-year extension of the term of the Shentel Affiliate Agreements.

 

(b)                Spectrum Transfer.

 

(i)              At the Closing, Shentel shall cause, or shall have caused, nTelos and its Affiliates to assign, transfer, deliver and convey to Sprint, all of its right, title and interest in and to the FCC Licenses, as of the Effective Time, pursuant to assignment documentation in substantially the form attached hereto as Exhibit A (the “Spectrum Assignment Documentation”).  Such FCC Licenses shall be free and clear of all Liens.

 

(ii)            At the Closing, Sprint will assume from Shentel, as of the Closing Date, the payment, discharge and performance of all liabilities and obligations relating to periods after the Closing Date under or with respect to the FCC Licenses, including, without limitation, any liabilities and obligations relating to periods after the Closing Date based on any Law, FCC Rule or applicable state regulatory commission or any other Governmental Entity to which the FCC Licenses are subject (the “Spectrum Assumed Liabilities”), pursuant to the Spectrum Assignment Documentation.

 

(c)                 Customer Transfer.

 

(i)              Pursuant to an assignment and assumption agreement, substantially in the form attached hereto as Exhibit B (the “Assignment and Assumption Agreement” and, together with the Spectrum Assignment Documentation, the “Assignment Documentation”), at the Closing, Shentel will, and will cause its applicable Affiliates to, assign, transfer, deliver and convey to Sprint, free and clear of all Liens, and Sprint will acquire all right, title and interest of Shentel and its applicable Affiliates, as of the Effective Time, in and to, the following: except with respect to the Excluded Contracts, (A) Shentel’s customer relationship 

20

(including any applicable Affiliate’s customer relationship) with (1) all individual subscribers (I) whose contracts for service are with nTelos or any Affiliate of nTelos; (II) who are directly liable under such contracts; and (III) who are Homed to the nTelos Footprint, including the Former nTelos Retail Customers (the “Individual Customers”), and (2) any enterprise or public sector subscriber located in the nTelos Footprint whose contracts for service are with nTelos or any Affiliate of nTelos (each, an “Enterprise Customer,” and, together with the Individual Customers, the “Customers”), (B) all written agreements with Individual Customers and the Enterprise Customers (the “Enterprise Customer Agreements” and, together with the written agreements with the Individual Customers, the “Customer Agreements”), (C) any interest of Shentel or its Affiliates in the NPA-NXXs associated with the Customers, including without limitation any unused NPA-NXX blocks for the nTelos Business, (D) any interest of Shentel or its Affiliates in the Mobile Block Identifier, Transmitted System Identifier and System Identifier/Billing Identifier information (I) associated with the Customers or (II) used by nTelos or any of its Affiliates to provide roaming services and roaming settlements for the nTelos Business, (E) the right of Shentel or its Affiliates to receive payments from such Customers pursuant to any such Customer Agreements for service rendered on and after the Effective Time, (F) all claims, deposits, prepayments, prepaid assets, accruals in respect of loyalty reward points, refunds, causes of action, rights of recovery, rights of setoff and rights of recoupment with respect to Customers, and (G) copies of all information and data compiled by nTelos or its Affiliates’ customer service center(s) from and after January 1, 2014, excluding Customer invoices and other immaterial information and data, to the extent available electronically to nTelos’s customer service representatives and able to be transferred to Sprint under applicable Law, with respect to Customers.

 

(ii)            Pursuant to the Assignment and Assumption Agreement, at the Closing, Sprint will assume from Shentel or its applicable Affiliates, as of the Effective Time, the payment, discharge and performance of all liabilities and obligations relating to periods after the Effective Time under the Customer Agreements (collectively, the “Customer Assumed Liabilities” and, together with the Spectrum Assumed Liabilities, the “Assumed Liabilities”).

 

(iii)           Except as otherwise expressly set forth in Sections 6.2(b) and (c), Sprint shall not assume or undertake in any way to perform, pay, satisfy or discharge any liability or obligation of Shentel of any nature whatsoever, whether known or unknown, determined or undetermined, liquidated or unliquidated, direct or indirect, contingent or accrued, matured or unmatured other than the Assumed Liabilities, including without limitation any liabilities or obligations (A) in connection with device insurance of any Customer relating to periods prior to or as of the migration of such Customer to the Sprint billing platform pursuant to the Retail Customer Transition Services Agreement, (B) relating to periods prior to or as of the Effective Time arising out of (I) any Law to which the FCC Licenses, or the Customer Agreements are subject or (II) the Customer relationship or any Customer Agreement, or (C) any of the Excluded Contracts 

21

(collectively, the “Excluded Liabilities”).  Shentel shall pay, perform and discharge when due all Excluded Liabilities.

 

(iv)           As promptly as reasonably practicable (and, in any event, not more than thirty (30) days) following the date hereof, Shentel shall cause (subject to such procedures as may be reasonably requested by nTelos) correct and complete copies of the Enterprise Customer Agreements in nTelos’s possession to be made available, in written or electronic form (the date such Enterprise Customer Agreements are first made available being referred to as the “Review Date”), for Sprint’s review to determine whether such Enterprise Customer Agreements constitute Restrictive Contracts. As promptly as reasonably practicable thereafter, Shentel shall deliver to Sprint a list that is complete and accurate in all material respects of the Enterprise Customer Agreements that require the consent of the applicable Customers to be assigned to Sprint (a “Required Consent Contract”).  Shentel shall use its commercially reasonable efforts to obtain the consent of the applicable Customer under such Required Consent Contract.  If the applicable Customer’s consent under such Required Consent Contract is not obtained prior to the Closing, such Required Consent Contract shall not be assigned to Sprint and shall be retained by Shentel or its applicable Affiliate (each, a “Retained Consent Contract”).

 

(v)            With respect to any Enterprise Customer Agreement that (A) contains most-favored nation pricing or contains terms that would impact most favored nation pricing under any of Sprint’s (or any of its Affiliates’) other contracts or agreements, (B) limits or restricts Sprint in any material respect from (I) engaging or competing with any Person in any material activity or material line of business, (II) competing with any Person or operating in any location or (III) obtaining products or services from or providing products or services to any Person, (C) includes any material exclusive dealing arrangement or any other material arrangement that grants any material right of first refusal or material right of first offer or similar material right or that limits or purports to limit in any material respect the ability of Sprint to own, operate, sell, transfer, pledge or otherwise dispose of any material assets or business, (D) contains any restrictions of financing, borrowing or the issuance or offering of any debt or equity securities of Sprint, (E) would otherwise materially impact the ongoing business of Sprint or any of its Affiliates or (F) has not been provided by Shentel to Sprint for review (each a “Restrictive Contract”), Sprint may, subject to Section 6.2(c)(vi), reject any such Restrictive Contract.  Sprint will, by written notice to Shentel within sixty (60) days after the Review Date, provide a list of all Enterprise Customer Agreements it will acquire from Shentel, it being understood and agreed that (y) Sprint may only reject Restrictive Contracts and (z) any Enterprise Customer Agreement that has not been provided by Shentel to Sprint for review shall automatically be deemed to be a rejected Restrictive Contract.  Each Enterprise Customer Agreement that is not included on such list is referred to herein as a “Rejected Contract” and, together with each Retained Consent Contract, the “Excluded Contracts”.

 

22

(vi)          Between the date hereof and the Closing, Shentel may hold discussions with any Customer who is a party to a Restrictive Contract for the purpose of making amendments or modifications thereto as are necessary so that such Customer Agreement ceases to constitute a Restrictive Contract, in which case such Customer Agreement shall be assigned to Sprint in accordance with Section 6.2(c)(i) and shall not be an Excluded Contract.

 

(vii)         Notwithstanding any other provision in this Agreement to the contrary, Shentel or its applicable Affiliate shall retain all right, title and interests in and to, and all obligations and liabilities with respect to, all Excluded Contracts (including, without limitation, all equipment, services and other receivables related thereto).

 

(viii)       The Parties acknowledge and agree that, notwithstanding anything herein to the contrary, (A) the Former nTelos Retail Customers shall be converted into Sprint retail subscribers and shall not be governed by the Shentel Affiliate Agreements, and (B) the Parties will cooperate with each other and use commercially reasonable efforts to develop a plan for the handling of the retail and network assets located in the markets of the Former nTelos Retail Customers, but such plan will not include Sprint assuming any liabilities or obligations related to such retail or network assets or any responsibility for shut down or decommissioning costs.

 

(ix)           The Parties acknowledge and agree that Sprint and its Affiliates currently have postpaid and prepaid subscribers Homed to the Former nTelos Service Area (“Sprint/nTelos Subscribers”).  As of the Effective Time, the Sprint/nTelos Subscribers shall be deemed to be either “Customers” or “Prepaid Subscribers” pursuant to the Shentel Affiliate Agreements and fees and credits relating to the Sprint/nTelos Subscribers shall be settled as set forth in Section 15 of the Shentel Affiliate Addendum.

 

(d)                Termination of the Amended and Restated Resale Agreement.  At the Closing, the Parties shall execute and deliver to each other a termination agreement in substantially the form attached hereto as Exhibit C (the “Termination Agreement”), which Termination of Amended and Restated Resale Agreement shall terminate the Amended and Restated Resale Agreement.

 

(e)                 Retail Customer Transition Services Agreement.  The Parties shall use their commercially reasonable efforts to execute and deliver to each other a customer transition services agreement (the “Retail Customer Transition Services Agreement”) within sixty (60) days of the date hereof.

 

(f)                  Retail Stores Transfer Agreement.  Contemporaneously herewith, the Parties shall execute and deliver (or shall cause the execution and delivery of) that certain Retail Stores Transfer Agreement providing for the transfer of Sprint’s retail stores and related assets and employees in the Former nTelos Service Area (the “Retail Stores Transfer Agreement”).

 

23

(g)                Intercarrier Roamer Service Agreement.  At or prior to Closing, the Parties shall amend the Intercarrier Roamer Service Agreement to (i) provide that any Sprint customer usage in the Former nTelos Service Area will be settled under the Management Agreement and (ii) terminate the Intercarrier Roamer Service Agreement effective as of the date when the migration of the Former nTelos Customers to the Sprint billing platform transition under the Retail Customer Transition Services Agreement is complete.

 

(h)                Termination of Agreements.  Promptly following the Closing, Shentel shall take the actions described in Schedule 6.2(h) with respect to the termination of the agreements set forth therein.

 

Section 6.3                  Notice of Certain Events.  Each of the Parties shall use commercially reasonable efforts to refrain from taking any action that would render any representation or warranty contained in this Agreement inaccurate in any material respect immediately prior to the Closing. Each Party shall promptly notify the other in writing (i) of any Proceeding that shall be instituted or threatened against such Party to restrain, prohibit or otherwise challenge the legality of any Transactions, (ii) of any development causing any of the representations and warranties of such Party in Articles IV or V above, as applicable, to be untrue in any material respect or (iii) of any Proceeding that may be threatened, brought, asserted or commenced against such Party which would have been required to have been disclosed if such Proceeding had arisen prior to the date hereof. No disclosure by either Party pursuant to this Section 6.3, however, shall be deemed to amend or supplement this Agreement or to prevent or cure any misrepresentation, breach of warranty or breach of covenant herein.

 

Section 6.4                 Confidentiality.  All non-public information, written or oral, provided by one Party (or its Affiliates) to any other Party (or its Affiliates) under this Agreement, whether in connection with the defense of a claim or otherwise, shall be kept confidential by the receiving Party and its Affiliates, and shall not be used or disclosed by the receiving Party or its Affiliates except to the extent required in connection with the performance of the receiving Party’s obligations under this Agreement or as required by Law, and then only after the disclosing Party has provided the receiving Party with a reasonable opportunity to seek confidential treatment, a protective order or other limitation on such disclosure. This provision shall survive the Closing or termination of this Agreement by two (2) years. The foregoing provisions of this Section 6.4 are in addition to those in the Agreement for Mutual Use and Nondisclosure of Proprietary Information, effective as of September 23, 2014, by and between Sprint Spectrum L.P. and Shentel.

 

Section 6.5                 Further Assurances.  Each Party shall forthwith upon request execute and deliver such documents and take such commercially reasonable actions as may reasonably be requested by the other Party in order to effectuate the purposes of this Agreement.

 

Section 6.6                  Updated Schedules.  Not less than five (5) Business Days prior to the Closing Date, and solely for the purpose of rendering its representations and warranties in Article V true and correct on and as of the Closing Date, Shentel shall supplement, amend or correct in writing the Shentel Disclosure Schedule (the “Updated Schedules”).

 

24

Section 6.7                   Due Diligence; Access to Employees.  Shentel will, and will use its commercially reasonable efforts to cause nTelos to, permit Sprint and its employees and representatives, in a reasonable manner during normal business hours and upon prior notice, reasonable access to, and make available for inspection, all of the assets of Shentel and nTelos related to the operations in the Former nTelos Service Area, as well as Shentel’s and nTelos’s key employees and suppliers, and furnish Sprint copies of all documents, books, records and information with respect to the affairs of Shentel and nTelos related to the operations in the Former nTelos Service Area, in each case as Sprint and its representatives may reasonably request in connection with the performance of this Agreement, including, without limitation, such access and information related to the post-Closing (i) integration of the Parties’ billing, IT and other systems, (ii) transition of the Former nTelos Affiliate Customers to Converted nTelos Affiliate Subscribers and (iii) transition of the Former nTelos Retail Customers to Converted nTelos Retail Subscribers.

 

Section 6.8                   Equipment Receivables.

 

(a)                At the Closing, Shentel shall, and shall cause its applicable Affiliates to, sell, assign, transfer, convey and deliver to Sprint, free and clear of all Liens, and Sprint shall purchase from Shentel, all of Shentel’s and its Affiliates’ right, title and interest in, as of the Effective Time, the billed and unbilled equipment receivables arising from any equipment installation agreement that is a Customer Agreement (excluding any Excluded Contract) (the “Equipment Receivables”).  As soon as reasonably practicable after the Closing Date, Shentel shall prepare and deliver to Sprint a statement setting forth the gross amount of the Equipment Receivables (the “Original Equipment Receivables Amount”).  At the Closing (and during the post-Closing period that the Customers are being transitioned to the Sprint billing platform), Shentel shall also pay to Sprint a cash amount equal to the full value of all unreturned customer deposits, if any, collected in connection with the Customer Agreements (excluding any Excluded Contracts).  Sprint will not make at Closing, or be required to make at Closing, any initial payment to Shentel in connection with Sprint’s purchase of the Equipment Receivables.

 

(b)                As consideration for the Equipment Receivables, Sprint shall pay to Shentel an amount (the “Sprint Equipment Receivables Payment”) equal to the product of (i) the Original Equipment Receivables Amount times (ii) 70%.  The Sprint Equipment Receivables Payment shall be payable over twenty-four (24) months (the “Equipment Receivables Payment Period”) in equal, monthly installments, the first payment of which shall be due within ten (10) days after the completion of the migration of the Customers to the Sprint billing platform.  Each subsequent payment shall be due and payable on the first Monday of each calendar month during the Equipment Receivables Payment Period.

 

(c)                Sprint shall, within fifteen (15) days following the first anniversary of the completion of the migration of the Customers to the Sprint billing platform (the “First-Year True-Up Date”), deliver to Shentel a report (the “First-Year Equipment Receivables Calculation”) setting forth the gross amount of the Equipment Receivables actually collected by Sprint from Customers during the first twelve (12) months of the Equipment Receivables Payment Period (the “First-Year Collected Amount”).  The First-Year Equipment Receivables Calculation shall include reasonable supporting documentation

25

used by Sprint in the preparation of the First-Year Equipment Receivables Calculation.  Shentel shall have the right, during the fifteen (15) days following its receipt of the First-Year Equipment Receivables Calculation and at its sole cost and expense, to audit, or to cause its employees or representatives to audit, Sprint’s books, records and other documents (including computer files) as necessary to verify the number of the First-Year Equipment Receivables Amount.  Shentel shall give Sprint reasonable notice of such audit, and Sprint shall reasonably cooperate with Shentel in conducting such audit.  Such audit shall be subject to the confidentiality provisions set forth in Section 6.4 of this Agreement, and shall be conducted in compliance with Sprint’s privacy and corporate data security policies and applicable Law.  In the event that Shentel disputes the First-Year Equipment Receivables Amount, the Parties shall negotiate in good faith to resolve any such dispute as promptly as reasonably practicable.

 

(d)                If the First-Year Collected Amount is:

 

(i)              less than 47.5% of the Sprint Equipment Receivables Payment (the “First-Year Target Amount”), then, within five (5) Business Days after the First-Year Collected Amount is determined in accordance with Section 6.8(c), Shentel shall pay Sprint a one-time payment, in immediately available funds, without interest, equal to the First-Year Target Amount minus the First-Year Collected Amount (the “First-Year Deficit True-Up Amount”).  As an example, if the Sprint Equipment Receivables Payment equals $15,750,000, then the First-Year Target Amount would be $7,481,250.  If, on the First-Year True-Up Date, the First-Year Collected Amount equals $7,000,000, then Shentel would pay Sprint a First-Year Deficit True-Up Amount equal to $481,250; or

 

(ii)            more than the First-Year Target Amount, then, within five (5) Business Days after the First-Year Collected Amount is determined in accordance with Section 6.8(c), Sprint shall pay Shentel a one-time payment, in immediately available funds, without interest, equal to the First-Year Collected Amount minus the First-Year Target Amount (the “First-Year Surplus True-Up Amount”).  As an example, if the Sprint Equipment Receivables Payment equals $15,750,000, then the First-Year Target Amount would be $7,481,250.  If, on the First-Year True-Up Date, the First-Year Collected Amount equals $7,500,000, then Sprint would pay Shentel a First-Year Surplus True-Up Amount equal to $18,750.

 

(e)            During the Equipment Receivables Payment Period, Sprint shall use its commercially reasonable efforts consistent with its customary practices in the ordinary course of business, consistent with past practice, to collect the Equipment Receivables.  Sprint shall, within thirty (30) days following the end of the Equipment Receivables Payment Period, deliver to Shentel a report (the “Final Equipment Receivables Calculation”) setting forth the gross amount of the Equipment Receivables actually collected by Sprint from Customers during the Equipment Receivables Payment Period (the “Final Equipment Receivables Amount”). The Final Equipment Receivables Calculation shall include reasonable supporting documentation used by Sprint in the preparation of the Final Equipment Receivables Calculation.  Shentel shall have the right, during the fifteen (15) days following its receipt of the Final Equipment Receivables

26

Calculation and at its sole cost and expense, to audit, or to cause its employees or representatives to audit, Sprint’s books, records and other documents (including computer files) as necessary to verify the number of the Final Equipment Receivables Amount.  Shentel shall give Sprint reasonable notice of such audit, and Sprint shall reasonably cooperate with Shentel in conducting such audit.  Such audit shall be subject to the confidentiality provisions set forth in Section 6.4 of this Agreement, and shall be conducted in compliance with Sprint’s privacy and corporate data security policies and applicable Law.  In the event that Shentel disputes the Final Equipment Receivables Amount, the Parties shall negotiate in good faith to resolve any such dispute as promptly as reasonably practicable.

 

(f)                 After the Final Equipment Receivables Amount has been finally determined pursuant to Section 6.8(e), the Parties shall reconcile the payments made hereunder for the Equipment Receivables as follows:

 

(i)             if (x) the Final Equipment Receivables Amount, (y) minus the Sprint Equipment Receivables Payment and (z) plus the First-Year Deficit True-Up Amount or minus the First-Year Surplus True-Up Amount, as applicable, is a negative number, then Shentel shall, within five (5) Business Days after the final determination of the Final Equipment Receivables Amount, pay the absolute value of such amount to Sprint in immediately available funds, without interest. As an example, if the Sprint Equipment Receivables Payment equals $15,750,000, then the First-Year Target Amount would be $7,481,250.  If, on the First-Year True-Up Date, the First-Year Collected Amount equals $7,000,000, then Shentel would pay Sprint a First-Year Deficit True-Up Amount equal to $481,250.  If the Final Equipment Receivables Amount was $15,000,000, Shentel would pay Sprint a final amount equal to $268,750; and

 

(ii)            if (x) the Final Equipment Receivables Amount, (y) minus the Sprint Equipment Receivables Payment and (z) plus the First-Year Deficit True-Up Amount or minus the First-Year Surplus True-Up Amount, as applicable, is a positive number, then Sprint shall, within five (5) Business Days after the final determination of the Final Equipment Receivables Amount, pay the absolute value of such amount to Shentel in immediately available funds, without interest.  As an example, if the Sprint Equipment Receivables Payment equals $15,750,000, then the First-Year Target Amount would be $7,481,250.  If, on the First-Year True-Up Date, the First-Year Collected Amount equals $7,500,000, then Sprint would pay Shentel a First-Year Surplus True-Up Amount equal to $18,750.  If the Final Equipment Receivables Amount was $16,000,000, Sprint would pay Shentel a final amount equal to $231,250.

 

(g)                For the avoidance of doubt, this Agreement provides for the outright sale and transfer of ownership of the Equipment Receivables to Sprint. From and after the Closing, Shentel will have no right to any payments collected by Sprint relating to the Equipment Receivables (other than as provided in Sections 6.8(d) and 6.8(f)) or to contact the migrated Customers for any matter relating to the Equipment Receivables.  If Shentel or any of its Affiliates receives or collects any funds constituting Equipment 

27

Receivables, Shentel or such Affiliate shall promptly remit such funds to Sprint, it being understood, however, that Shentel makes no representation, warranty or guaranty as to collectability of the Equipment Receivables.  Sprint shall be solely responsible for all costs and expenses, legal or otherwise, associated with administering, collecting and asserting rights to the Equipment Receivables.

 

Section 6.9                  Amendment of Certain Agreements.  Sprint shall use commercially reasonable efforts to take the actions described in Schedule 6.9.

 

Section 6.10               Lease Assignment and Termination.  At the Closing, (a) the Parties shall terminate (or cause the termination of) each of the nTelos-Sprint Spectrum Leases and (b) upon Sprint’s request, Shentel shall, subject to obtaining any required consents of applicable counterparties thereto, assign (or cause the assignment of) any requested Other nTelos Spectrum Leases (other than any Other nTelos Spectrum Lease that is terminated or expired as of the Closing) to Sprint or an Affiliate of Sprint.  If any such required consents are not obtained, the associated Other nTelos Spectrum Leases shall not be assigned and transferred to Sprint at the Closing and shall be retained by Shentel or its applicable Affiliate. At or prior to Closing, Shentel shall, or Shentel shall cause an Affiliate of Shentel to, terminate the Intra-Company Lease.

 

Section 6.11               Migration Plan.  The Parties shall use their commercially reasonable efforts to develop, within sixty (60) days of the date hereof, a plan for the migration of the Customers to the Sprint billing platform (the “Migration Plan”).  The Parties shall use their commercially reasonable efforts to implement the planning activities outlined in Schedule 6.11 between the date hereof and the finalization of the Migration Plan, so long as such planning activities are allowed under applicable Law.  The Parties shall use their commercially reasonable efforts to migrate the Customers to the Sprint billing platform pursuant to the Migration Plan and the Retail Customer Transition Services Agreement within the later of (i) one hundred eighty (180) days after the date hereof or (ii) ninety (90) days after the Closing.

 

Section 6.12                Services Receivables.

 

(a)                 Shentel shall be entitled to receive all receivables for services rendered under the Customer Agreements (the “Services Receivables”) for all periods prior to the Effective Time (the “Pre-Closing Services Receivables”).  If Sprint or any of its Affiliates receives or collects any funds constituting Pre-Closing Services Receivables, Sprint or such Affiliate shall promptly remit such funds to Shentel.

 

(b)               Subject to Section 6.2(c)(vii), the Services Receivables for all periods after the Effective Time shall be governed by the Shentel Affiliate Agreements.

 

ARTICLE VII

CONDITIONS TO CLOSING

 

Section 7.1                  Conditions to the Obligations of Shentel.  Shentel’s obligation to consummate the Transactions is subject to the satisfaction or waiver on or prior to the Closing Date of each of the following conditions:

 

28

(a)               All FCC Consents shall have been obtained by Final Order, shall be in full force and effect and shall be free of any Adverse Regulatory Condition affecting Shentel or any of its Affiliates.

 

(b)                The termination or expiration of the waiting period (and any extension thereof) applicable to the Transaction under the HSR Act shall have occurred and all material Consents (other than the FCC Consents) necessary to be obtained from any Governmental Entity in order to effect the transactions specified in Article VI of this Agreement shall have been obtained, shall be in full force and effect and shall be free of any Adverse Regulatory Condition affecting Shentel or any of its Affiliates.

 

(c)                The representations and warranties of Sprint contained herein shall be true and correct in all material respects as of the Closing as if made as of the Closing Date, and Shentel shall have received a certificate to such effect dated as of the Closing Date and executed by a duly authorized officer of Sprint.

 

(d)                No Proceeding (except for any Proceeding relating to FCC matters, which shall be governed solely by the condition set forth in Section 7.1(a)) shall have been instituted by any Governmental Entity to restrain or prohibit or otherwise challenge the legality or validity of the Transactions.

 

(e)                The covenants and agreements of Sprint to be performed on or prior to the Closing under this Agreement shall have been duly performed and complied with in all material respects, and Shentel shall have received a certificate to such effect dated the Closing Date and executed by a duly authorized officer of Sprint.

 

(f)                 The Merger shall have become effective.

 

(g)                Sprint shall have executed and delivered the following Transaction Documents to Shentel: (i) the Assignment Documentation and (ii) the Termination Agreement.

 

Section 7.2                   Conditions to the Obligations of Sprint.  Sprint’s obligation to consummate the Transactions is subject to the satisfaction or waiver on or prior to the Closing Date of each of the following conditions:

 

(a)               All FCC Consents shall have been obtained by Final Order, shall be in full force and effect and shall be free of any Adverse Regulatory Condition affecting Sprint or any of its Affiliates.

 

(b)                The termination or expiration of the waiting period (and any extension thereof) applicable to the Transaction under the HSR Act shall have occurred and all material Consents (other than the FCC Consents) necessary to be obtained from any Governmental Entity to effect the transactions specified in Article VI of this Agreement shall have been obtained, shall be in full force and effect and shall be free of any Adverse Regulatory Condition affecting Sprint or any of its Affiliates.

 

29

(c)                 The representations and warranties of Shentel contained herein shall be true and correct in all material respects as of the Closing as if made as of the Closing Date (determined without regard to the Updated Schedules), and Sprint shall have received a certificate to such effect dated the Closing Date and executed by a duly authorized officer of Shentel.

 

(d)                No Proceeding (except for any action, suit, investigation or Proceeding relating to FCC matters, which shall be governed solely by the condition set forth in Section 7.2(a)) shall have been instituted by any Governmental Entity to restrain or prohibit or otherwise challenge the legality or validity of the Transactions.

 

(e)                The covenants and agreements of Shentel to be performed on or prior to the Closing under this Agreement shall have been duly performed and complied with in all material respects, and Sprint shall have received a certificate to such effect dated the Closing Date and executed by a duly authorized officer of Shentel.

 

(f)                  The Merger shall have become effective.

 

(g)                Shentel shall have executed and delivered the following Transaction Documents to Sprint: (i) the Assignment Documentation and (ii) the Termination Agreement.

 

ARTICLE VIII

TERMINATION

 

Section 8.1                   Termination.  This Agreement may be terminated, and the Transactions abandoned, without further obligation of any Party except as set forth herein, at any time prior to the Closing Date:

 

(a)                 by mutual written consent of the Parties;

 

(b)                by either Party (provided that such Party is not otherwise in material breach) if the other Party has materially breached a representation, warranty, covenant or agreement set forth herein, and the breaching Party fails to cure such breach within sixty (60) days of written notice thereof; provided, however, that if the breaching Party diligently attempts to cure such breach during the sixty (60) day time period but fails to do so, such period will be automatically extended for an additional thirty (30) days;

 

(c)                by either Party upon written notice to the other Party, upon the other Party’s failing, or the other Party having filed against it and remaining pending for more than forty-five (45) days, a petition under Title 11 of the United States Code or similar state law provision seeking protection from creditors or the appointment of a trustee, receiver or debtor in possession;

 

(d)                by either Party upon written notice to the other Party if a court of competent jurisdiction or Governmental Entity shall have issued an order, decree or 

30

ruling permanently restraining, enjoining or otherwise prohibiting the Transactions, and such order, decree, ruling or other action shall have become final and non-appealable;

 

(e)                by either Party upon written notice to the other Party if the Closing shall not have occurred on or before June 28, 2016, which is the Outside Date as defined in the Merger Agreement as of the date hereof, after giving effect to the extension thereof; provided, however, that the right to terminate this Agreement pursuant to this Section 8.1(e) shall not be available to any Party whose breach of, or failure to fulfill any material obligation under, this Agreement has been the primary cause of, or resulted in, the failure of the Transactions to be consummated on or before such date; and

 

(f)                  by either Shentel or Sprint upon prior written notice to the other Party if the Merger Agreement has been terminated.

 

Section 8.2                  Effect of Termination.  In the event of a termination of this Agreement, no Party shall have any liability or further obligation to the other Parties to this Agreement, except that (i) nothing herein will relieve a Party from liability for any breach of its representations, warranties or covenants contained in this Agreement, provided, however, that in the absence of a knowing and material breach, the breaching Party shall only be liable to the non-breaching Party for its reasonable and documented out-of-pocket costs and expenses incurred in conducting due diligence related to, negotiating and preparing for the consummation of this Agreement; and (ii) this Article VIII and Articles IX and X hereof shall survive the termination of this Agreement for any reason. Whether or not the Closing occurs, all costs and expenses incurred in connection with this Agreement and the Transactions shall be paid by the Party incurring such expenses.

 

ARTICLE IX

SURVIVAL AND INDEMNIFICATION

 

Section 9.1                  Survival.  The representations and warranties contained in this Agreement shall survive the Closing until eighteen (18) months after the Closing Date and shall expire at such time. The covenants contained in this Agreement shall survive until they are fully performed.  All indemnification obligations under this Agreement shall terminate as of the expiration of the survival period set forth in this Section, provided that the applicable survival period shall be extended automatically to include any time period necessary to resolve a claim for indemnification that was made prior to the expiration of such survival period and not resolved prior to such expiration, but any such extension shall apply only as to such claims expressly made in writing prior to such expiration.  The right to indemnification, payment of Losses or other remedy based on such representations, warranties, covenants and obligations will not be affected by any investigation conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time, whether before or after the execution and delivery of this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of or compliance with, any such representation, warranty, covenant or obligation.

 

Section 9.2                 Indemnification by Shentel.  Shentel shall indemnify and hold harmless Sprint and its Affiliates, and their respective owners, managers, directors, officers, employees and agents (the “Sprint Indemnified Persons”) from and against any and all demands, claims, 

31

liabilities, actions or causes of action, assessments, actual damages, fines, taxes (including, without limitation, excise and penalty taxes), losses, penalties, reasonable costs and expenses (including, without limitation, interest, reasonable expenses of investigation, reasonable fees and disbursements of counsel, accountants and other experts, whether such reasonable fees and disbursements of counsel, accountants and other experts relate to claims, actions or causes of action asserted by any Sprint Indemnified Person against Shentel or asserted by third Parties) (collectively “Losses”), incurred or suffered by Sprint or any Sprint Indemnified Person arising out of, in connection with or relating to (i) any material breach of any of the representations or warranties made by Shentel in this Agreement, (ii) any material failure by Shentel to perform any of its covenants or agreements contained in this Agreement, (iii) the matters described on Schedule 9.2, (iv) any material claims by third parties arising out of, in connection with or relating to the ownership or operation of the FCC Licenses prior to the Closing Date or (v) any of the Excluded Liabilities.

 

Section 9.3                  Indemnification by Sprint.  Sprint shall indemnify and hold harmless Shentel and its Affiliates, and their respective shareholders, directors, officers, employees and agents (the “Shentel Indemnified Persons”) from and against any and all Losses incurred or suffered by Shentel or any Shentel Indemnified Person arising out of, in connection with or relating to (i) any material breach of any of the representations or warranties made by Sprint in this Agreement, (ii) any material failure by Sprint to perform any of its covenants or agreements contained in this Agreement, or (iii) any material claims by third parties arising out of, in connection with or relating to the ownership or operation of the FCC Licenses on or after the Closing Date.

 

Section 9.4                  Remedies.  Notwithstanding any provisions of this Article IX to the contrary, each of the Parties acknowledges and agrees that the Transactions are unique and that, prior to and following the Closing, remedies at law, including monetary damages, will be inadequate in the event of a breach by it in the performance of its obligations under this Agreement. Accordingly, the Parties agree that in the event of any such breach, the non-breaching Party shall (subject to any defenses available to the breaching Party other than the possible adequacy of remedies at law) be entitled to a decree of specific performance pursuant to which the breaching Party is ordered to affirmatively carry out its obligations under this Agreement, subject to the conditions of this Agreement. The foregoing shall not be deemed to be or construed as a waiver or election of remedies by the non-breaching Party and the non-breaching Party expressly reserves any and all rights and remedies available to the non-breaching Party at law or in equity in the event of any breach or default by the breaching Party under this Agreement.  Any Party seeking an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement shall not be required to provide any bond or other security in connection with any such order or injunction.  The Parties acknowledge that in the absence of a waiver, a bond or undertaking may be required by a court and the Parties hereby waive any such requirement of such a bond or undertaking.

 

32

ARTICLE X

MISCELLANEOUS

 

Section 10.1               Assignment.  This Agreement shall be binding upon and inure to the benefit of the Parties and their successors and permitted assigns. The rights of a Party under this Agreement shall not be assignable by such Party prior to the Closing without the written consent of the other Parties.

 

Section 10.2                Notices.  All notices or other communications hereunder shall be in writing and shall be deemed to have been duly given or made (i) upon delivery if delivered personally (by courier service or otherwise) to the address provided in this Section 10.2, or (ii) if delivered by facsimile transmission to the facsimile number provided in this Section 10.2, when receipt of transmission has been orally confirmed by the receiving Party (in each case regardless of whether such notice, request or other communication is received by any other Person to whom a copy of such notice is to be delivered pursuant to this Section 10.2), in each case to the applicable addresses set forth below (or such other address which either Party hereto may from time to time specify). Any notice of breach shall be prominently labeled as “Notice of Breach of Contract.” Any Party from time to time may change its address, facsimile number or other information for the purpose of notices to that Party by giving notice specifying such change to the other Party.

 

If to Sprint:

 

Sprint Spectrum L.P.

c/o Sprint Corporation

6200 Sprint Parkway

Overland Park, Kansas 66251

Attention: Vice President – Business Development

Facsimile No.: (913) 523-2785

 

With a copy to (which shall not constitute notice)

 

Sprint Spectrum L.P.

c/o Sprint Corporation

6200 Sprint Parkway

Overland Park, Kansas 66251

Attention: Charles R. Wunsch, Esq., General Counsel

Facsimile No.: (913) 523-9802

 

And a copy to (which shall not constitute notice):

 

Polsinelli P.C.

900 W. 48th Place, Suite 900

Kansas City, Missouri 64112

Attention: William W. Mahood, Esq.

Facsimile No.: 816-753-1536

 

33

If to Shentel:

 

Shenandoah Telecommunications Company

500 Shentel Way

Edinburg, VA 22824

Tel: (540) 984-5040

Attention: Earle A. MacKenzie, Executive Vice President and Chief Operating Officer

 

With a copy to (which shall not constitute notice)

 

Shenandoah Telecommunications Company

500 Shentel Way

Edinburg, VA 22824

Tel: (540) 984-5040

Attention: Ray Ostroski, Vice President, Legal and General Counsel

 

And a copy to (which shall not constitute notice):

 

Hunton & Williams LLP

Riverfront Plaza, East Tower

951 East Byrd Street

Richmond, Virginia 23219-4074

Tel:  (804) 788-7217

Fax:  (804) 343-4864

Attention:  Jeff Jones and Steven M. Haas

 

Section 10.3                Applicable Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without giving effect to the conflicts of law principles thereof.

 

Section 10.4                Entire Agreement; Amendment and Waivers.  This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter hereof and supersedes all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties. Any provision of this Agreement may be amended or waived if, and only if, such amendment or waiver is in writing and signed, in the case of an amendment, by Shentel and Sprint, or in the case of a waiver, by the Party against whom the waiver is to be effective. No failure or delay by either Party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

 

Section 10.5               Counterparts.  This Agreement may be executed and delivered in one or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

Section 10.6               Invalidity.  In the event that any one or more of the provisions contained in this Agreement or in any other instrument referred to herein, shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or any other such instrument and such 

34

provision will be ineffective only to the extent of such invalidity, illegality or unenforceability, unless the consummation of the Transactions is adversely affected thereby. Upon such determination that a particular provision or term is invalid or unenforceable, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an acceptable manner to the end that the Transactions are fulfilled to the greatest extent possible.

 

Section 10.7               Headings.  The headings of the Articles and Sections herein are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement.

 

Section 10.8               Expenses.  Whether or not the Transactions are consummated, the Parties shall bear their own respective expenses (including, but not limited to, all compensation and expenses of counsel, financial advisors, consultants, actuaries and independent accountants) incurred in connection with this Agreement and the Transactions.

 

Section 10.9                Publicity.  The Parties hereby agree that except as may be required to comply with the requirements of applicable Law (including the rules and regulations of the Securities and Exchange Commission) or the rules and regulations of any national securities exchange or automated quotation system sponsored by a registered national securities association upon which the securities of one of the Parties or its Affiliates is listed (in either case the disclosing Party shall prior to any proposed written disclosure, permit the non-disclosing Party to review and to the extent practicable comment on such proposed disclosure), no press release or similar public announcement or communication will be made or caused to be made concerning the execution or performance of this Agreement unless specifically approved in advance by all Parties.

 

Section 10.10             No Third Party Beneficiaries.  Except for the Parties’ respective Affiliates, nothing in this Agreement is intended to or will confer any rights or remedies upon any Person other than the Parties and their respective successors and permitted assigns.

 

Section 10.11             Waiver of Jury Trial.  Each Party hereby waives to the fullest extent permitted by applicable law any right it may have to a trial by jury in respect of any action, suit or Proceeding arising out of or relating to this Agreement.

 

[Remainder of page intentionally left blank]

 

35

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by their respective authorized officers all as of the date first written above.

	 	
SPRINTCOM, INC.

	 	 
	 	
By:

	/s/ Michael C. Schwartz
	 	
Name: Michael C. Schwartz

	 	
Title:   Vice President

	 	 
	 	
SHENANDOAH PERSONAL COMMUNICATIONS, LLC

	 	 
	 	
By:

	/s/ Christopher E. French
	 	
Name: Christopher E. French

	 	
Title: President and Chief Executive Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00248-of-00352.parquet"}]]