Document:

Credit Agreement, dated as of May 2, 2005, among Hawaiian Telcom Holdco, Inc.

 Exhibit 10.1 
  
 EXECUTION COPY 
  

  
 CREDIT AGREEMENT 
  
 dated as of 
  
 May 2, 2005 
  
 among 
  
 HAWAIIAN TELCOM HOLDCO, INC., 
  
 HAWAIIAN TELCOM COMMUNICATIONS, INC., 
 as Borrower, 
  
 The Lenders Party Hereto 
  
 and 
  
 JPMORGAN CHASE BANK, N.A., 
 as Administrative Agent 
  

  
 J.P. MORGAN SECURITIES INC. and 
 GOLDMAN SACHS CREDIT PARTNERS L.P., 
 as Joint Lead Arrangers 
  

  
 J.P. MORGAN SECURITIES INC., 
 GOLDMAN SACHS CREDIT PARTNERS L.P., and 
 LEHMAN COMMERCIAL PAPER INC., 
 as Joint
Bookrunners 
  

  
 GOLDMAN SACHS CREDIT PARTNERS L.P., 
 as
Syndication Agent 
  

  
 LEHMAN COMMERCIAL PAPER INC., 
 as Documentation
Agent 
  

  
 ABN AMRO BANK, N.V. and 
 WACHOVIA BANK, N.A.,

 as Co-Documentation Agents 
  

  
 COBANK, ACB, 
 as Agent 
  

 TABLE OF CONTENTS 
  

			
	ARTICLE I	  	 
		
	Definitions	  	 
		
	 SECTION 1.01. Defined Terms
	  	1
		
	 SECTION 1.02. Classification of Loans and Borrowings
	  	37
		
	 SECTION 1.03. Terms Generally
	  	37
		
	 SECTION 1.04. Accounting Terms; GAAP
	  	37
		
	ARTICLE II	  	 
		
	The Credits	  	 
		
	 SECTION 2.01. Commitments
	  	37
		
	 SECTION 2.02. Loans and Borrowings
	  	38
		
	 SECTION 2.03. Requests for Borrowings
	  	39
		
	 SECTION 2.04. Swingline Loans
	  	39
		
	 SECTION 2.05. Letters of Credit
	  	41
		
	 SECTION 2.06. Funding of Borrowings
	  	46
		
	 SECTION 2.07. Interest Elections
	  	46
		
	 SECTION 2.08. Termination and Reduction of Commitments
	  	48
		
	 SECTION 2.09. Repayment of Loans; Evidence of Debt
	  	48
		
	 SECTION 2.10. Amortization of Term Loans
	  	49
		
	 SECTION 2.11. Prepayment of Loans
	  	51
		
	 SECTION 2.12. Fees
	  	53

 Contents, p. 2 
  

			
		
	 SECTION 2.13. Interest
	  	55
		
	 SECTION 2.14. Alternate Rate of Interest
	  	55
		
	 SECTION 2.15. Increased Costs
	  	56
		
	 SECTION 2.16. Break Funding Payments
	  	57
		
	 SECTION 2.17. Taxes
	  	58
		
	 SECTION 2.18. Payments Generally; Pro Rata Treatment; Sharing of Setoffs
	  	59
		
	 SECTION 2.19. Mitigation Obligations; Replacement of Lenders
	  	61
		
	ARTICLE III	  	 
		
	Representations and Warranties	  	 
		
	 SECTION 3.01. Organization; Powers
	  	62
		
	 SECTION 3.02. Authorization; Enforceability
	  	62
		
	 SECTION 3.03. Governmental Approvals; No Conflicts
	  	62
		
	 SECTION 3.04. Financial Condition; No Material Adverse Change
	  	63
		
	 SECTION 3.05. Properties
	  	63
		
	 SECTION 3.06. Litigation and Environmental Matters
	  	64
		
	 SECTION 3.07. Compliance with Laws
	  	64
		
	 SECTION 3.08. Licenses; Tariffs
	  	64
		
	 SECTION 3.09. Investment and Holding Company Status
	  	65
		
	 SECTION 3.10. Taxes
	  	66
		
	 SECTION 3.11. ERISA; Margin Regulations
	  	66
		
	 SECTION 3.12. Disclosure
	  	66

 Contents, p. 3 
  

			
		
	 SECTION 3.13. Subsidiaries
	  	67
		
	 SECTION 3.14. Insurance
	  	67
		
	 SECTION 3.15. Labor Matters
	  	67
		
	 SECTION 3.16. Solvency
	  	67
		
	 SECTION 3.17. Senior Indebtedness
	  	68
		
	 SECTION 3.18. Acquisition
	  	68
		
	 SECTION 3.19. Security Documents
	  	68
		
	 SECTION 3.20. Liens
	  	69
		
	 SECTION 3.21. License Subsidiary Obligations
	  	69
		
	ARTICLE IV	  	 
		
	Conditions	  	 
		
	 SECTION 4.01. Effective Date
	  	69
		
	 SECTION 4.02. Each Credit Event
	  	72
		
	ARTICLE V	  	 
		
	Affirmative Covenants	  	 
		
	 SECTION 5.01. Financial Statements and Other Information
	  	73
		
	 SECTION 5.02. Notices of Material Events
	  	75
		
	 SECTION 5.03. Information Regarding Collateral
	  	76
		
	 SECTION 5.04. Existence; Conduct of Business
	  	76
		
	 SECTION 5.05. Payment of Obligations
	  	77
		
	 SECTION 5.06. Maintenance of Properties
	  	77

 Contents, p. 4 
  

			
		
	 SECTION 5.07. Insurance
	  	77
		
	 SECTION 5.08. Books and Records; Inspection and Audit Rights
	  	77
		
	 SECTION 5.09. Compliance with Laws
	  	77
		
	 SECTION 5.10. Use of Proceeds and Letters of Credit
	  	77
		
	 SECTION 5.11. Additional Subsidiaries
	  	78
		
	 SECTION 5.12. Further Assurances
	  	78
		
	 SECTION 5.13. Designation of Unrestricted Subsidiaries
	  	79
		
	ARTICLE VI	  	 
		
	Negative Covenants	  	 
		
	 SECTION 6.01. Indebtedness; Certain Equity Securities
	  	81
		
	 SECTION 6.02. Liens
	  	83
		
	 SECTION 6.03. Fundamental Changes
	  	86
		
	 SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions
	  	87
		
	 SECTION 6.05. Asset Sales
	  	89
		
	 SECTION 6.06. Sale and Leaseback Transactions
	  	91
		
	 SECTION 6.07. Swap Agreements
	  	91
		
	 SECTION 6.08. Restricted Payments; Certain Payments of Indebtedness
	  	91
		
	 SECTION 6.09. Transactions with Affiliates
	  	94
		
	 SECTION 6.10. Restrictive Agreements
	  	96
		
	 SECTION 6.11. Change in Business
	  	97
		
	 SECTION 6.12. Fiscal Year
	  	97

 Contents, p. 5 
  

			
	 SECTION 6.13. Amendment of Material Documents
	  	97
		
	 SECTION 6.14. Interest Coverage Ratio
	  	98
		
	 SECTION 6.15. Leverage Ratio
	  	98
		
	 SECTION 6.16. Senior Secured Leverage Ratio
	  	98
		
	 SECTION 6.17. Liabilities of License Subsidiaries
	  	98
		
	 SECTION 6.18. Commingling of Accounts
	  	99
		
	ARTICLE VII	  	 
		
	Events of Default	  	 
		
	ARTICLE VIII	  	 
		
	The Agent	  	 
		
	ARTICLE IX	  	 
		
	Miscellaneous	  	 
		
	 SECTION 9.01. Notices
	  	104
		
	 SECTION 9.02. Waivers; Amendments
	  	105
		
	 SECTION 9.03. Expenses; Indemnity; Damage Waiver
	  	108
		
	 SECTION 9.04. Successors and Assigns
	  	110
		
	 SECTION 9.05. Survival
	  	113
		
	 SECTION 9.06. Counterparts; Integration; Effectiveness
	  	114
		
	 SECTION 9.07. Severability
	  	114
		
	 SECTION 9.08. Right of Setoff
	  	114
		
	 SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process
	  	114

 Contents, p. 6 
  

			
	 SECTION 9.10. WAIVER OF JURY TRIAL
	  	115
		
	 SECTION 9.11. Headings
	  	115
		
	 SECTION 9.12. Confidentiality
	  	116
		
	 SECTION 9.13. Interest Rate Limitation
	  	116
		
	 SECTION 9.14. Termination or Release
	  	117
		
	 SECTION 9.15. USA Patriot Act
	  	117

 Contents, p. 7 
  

					
	 Schedule 2.01
	 	—	  	Commitments
	 Schedule 3.03
	 	—	  	Governmental Approvals, No Conflicts
	 Schedule 3.05(a)
	 	—	  	Third Party Interests in Real Estate
	 Schedule 3.05(b)
	 	—	  	Third Party Intellectual Property
	 Schedule 3.05(c)
	 	—	  	Real Property
	 Schedule 3.06
	 	—	  	Disclosed Matters
	 Schedule 3.07
	 	—	  	Compliance with Laws and Agreements
	 Schedule 3.08(d)
	 	—	  	Tariffs; FCC Licenses
	 Schedule 3.13
	 	—	  	Subsidiaries
	 Schedule 3.14
	 	—	  	Insurance
	 Schedule 6.01
	 	—	  	Existing Indebtedness
	 Schedule 6.02
	 	—	  	Existing Liens
	 Schedule 6.04
	 	—	  	Existing Investments
	 Schedule 6.09
	 	—	  	Transactions With Affiliates
	 Schedule 6.10
	 	—	  	Existing Restrictions

  
 EXHIBITS: 
  

					
	 Exhibit A
	  	—	  	Form of Assignment and Assumption
	 Exhibit B-1
	  	—	  	Form of Opinion of Latham & Watkins LLP
	 Exhibit B-2
	  	—	  	Form of Opinion of Latham & Watkins LLP
	 Exhibit B-3
	  	—	  	Form of Opinion of Ishikawa Morihara Lau & Fong LLP
	 Exhibit B-4
	  	—	  	Form of Opinion of Ishikawa Morihara Lau & Fong LLP
	 Exhibit C-1
	  	—	  	Form of Guarantee and Collateral Agreement
	 Exhibit C-2
	  	—	  	Form of Shared Collateral Agreement
	 Exhibit D
	  	—	  	Form of Perfection Certificate
	 Exhibit E
	  	—	  	Form of Affiliate Subordination Agreement

 CREDIT AGREEMENT dated as of May 2, 2005 (this “Agreement”), among HAWAIIAN TELCOM
COMMUNICATIONS, INC., a Delaware corporation, HAWAIIAN TELCOM HOLDCO, INC., a Delaware corporation, the LENDERS from time to time party hereto and JPMORGAN CHASE BANK, N.A., a national banking association, as administrative agent and collateral
agent for such lenders. 
  
 The parties hereto agree as follows:

  
 ARTICLE I 
  
 Definitions 
  
 SECTION 1.01. Defined Terms. As used in this Agreement, the following
terms have the meanings specified below: 
  
 “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Alternate Base Rate. 
  
 “Acquired Business” means all or substantially all of the
assets and businesses (including the Equity Interests and assets of the Telephone Subsidiary) comprising (i) the local telephone network business conducted by Verizon in Hawaii prior to the Acquisition, (ii) the long distance telephone
business operated prior to the Acquisition by certain subsidiaries of Verizon originating in Hawaii, (iii) the directory publishing business of certain subsidiaries of Verizon in the franchise areas served by Verizon in Hawaii prior to the
Acquisition, and (iv) the internet access services business conducted by subsidiaries of Verizon for customers in Hawaii prior to the Acquisition, in each case which will have been transferred to and which will be owned by Verizon HoldCo LLC
and/or its wholly owned subsidiaries on the Effective Date and will be acquired by the Borrower as a result of its merger with Verizon HoldCo LLC on the Effective Date pursuant to the Acquisition Agreement. 
  
 “Acquisition” means the acquisition by the Borrower pursuant
to the Acquisition Agreement of all the assets and businesses of Verizon HoldCo LLC, a Delaware limited liability company, which shall hold the Acquired Business (including all the Equity Interests of the Telephone Subsidiary), for a purchase price
of $1,310,000,000 in cash, subject to adjustment as set forth in the Acquisition Agreement, and the other transactions contemplated by the Acquisition Agreement and the documents related thereto. Such acquisition will be effected pursuant to the
merger of the Borrower with Verizon HoldCo LLC, in a transaction in which the Borrower will be the surviving entity and a wholly owned subsidiary of Holdings. 
  

“Acquisition Agreement” means the Agreement of Merger dated as of May 21, 2004, as amended and restated as of April 8, 2005,
among GTE Corporation, 

 
Verizon HoldCo LLC, Holdings and the Borrower, relating to the sale of the Acquired Business. 
  
 “Adjusted Consolidated EBITDA” means, for any period, Consolidated EBITDA for such period; provided,
however, that Adjusted Consolidated EBITDA for (i) any period of four fiscal quarters ending on or after March 31, 2005, and on or prior to March 31, 2006, will equal the Consolidated Revenues of the Borrower and the
Subsidiaries for such period, determined in accordance with GAAP, minus $348,000,000, (ii) the period of four fiscal quarters ending on June 30, 2006, will equal Consolidated EBITDA for the fiscal quarter ending June 30, 2006,
plus the Consolidated Revenues of the Borrower and the Subsidiaries for the nine month period ending March 31, 2006, determined in accordance with GAAP, minus $261,000,000, (iii) the period of four fiscal quarters ending on
September 30, 2006, will equal Consolidated EBITDA for the six month period ending September 30, 2006, plus the Consolidated Revenues of the Borrower and the Subsidiaries for the six month period ending March 31, 2006,
determined in accordance with GAAP, minus $174,000,000 and (iv) the period of four fiscal quarters ending on December 31, 2006, will equal Consolidated EBITDA for the nine month period ending December 31, 2006, plus the
Consolidated Revenues of the Borrower and the Subsidiaries for the three month period ending March 31, 2006, determined in accordance with GAAP, minus $87,000,000. 
  
 “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period, an interest
rate per annum (rounded upwards, if necessary, to the next 1/100 of 1%) equal to (a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate. 
  
 “Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as administrative agent for the
Lenders hereunder. 
  
 “Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by the Administrative Agent. 
  
 “Affiliate” means, with respect to a specified Person, another Person that directly, or indirectly through one or more intermediaries,
Controls or is Controlled by or is under common Control with the Person specified. 
  
 “Affiliate Subordination Agreement” means an Affiliate Subordination Agreement substantially in the form of Exhibit E pursuant to which intercompany obligations and advances owed by any Loan Party are
subordinated to the Obligations. 
  
 “Agent”
means JPMorgan Chase Bank, N.A., in its capacities as Administrative Agent and/or Collateral Agent, and each of its Affiliates and successors acting in any such capacity. The Administrative Agent may act on behalf of or in place of any Person
included in the “Agent”. 
  
 “Alternate Base
Rate” means, for any day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate
due to a 

  

 2 

 
change in the Prime Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the
Federal Funds Effective Rate, as the case may be. 
  
 “Applicable Percentage” means, with respect to any Revolving Lender, the percentage of the total Revolving Commitments represented by such Lender’s Revolving Commitment. If the Revolving Commitments have terminated or
expired, the Applicable Percentages shall be determined based upon the relative amounts of the Revolving Exposures of the Revolving Lenders. 
  
 “Applicable Rate” means, for any day (a) with respect to any Tranche B Term Loan, (i) 1.25% per annum, in the case of an ABR
Loan, and 2.25% per annum, in the case of a Eurodollar Loan, and (b) with respect to any ABR Loan or Eurodollar Loan that is a Revolving Loan or a Tranche A Term Loan, or with respect to the commitment fees payable hereunder, as the case
may be, the applicable rate per annum set forth below under the caption “ABR Spread”, “Eurodollar Spread” or “Commitment Fee Rate”, as the case may be, based upon the Leverage Ratio as of the most recent determination
date; provided that until the Borrower shall have delivered the financial statements and certificate required by Section 5.01(b) and Section 5.01(d) for the quarterly period ended on June 30, 2005, the “Applicable
Rate” for purposes of clause (b) shall be the applicable rate per annum set forth below in Category 1: 
  

										
	 Leverage Ratio:

	  	 ABR
 Spread

	 	 	 Eurodollar
 Spread

	 	 	 Commitment Fee
 Rate

	 
	 Category 1 greater than or equal to 5.00 to 1.00
	  	1.25	%	 	2.25	%	 	0.50	%
				
	 Category 2 greater than or equal to 4.50 to 1.00 but less than 5.00 to 1.00
	  	1.00	%	 	2.00	%	 	0.50	%
				
	 Category 3 greater than or equal to 4.00 to 1.00 but less than 4.50 to 1.00
	  	0.75	%	 	1.75	%	 	0.375	%
				
	 Category 4 less than 4.00 to 1.00
	  	0.50	%	 	1.50	%	 	0.375	%

  
 For purposes of the
foregoing, (i) the Leverage Ratio shall be determined as of the end of each fiscal quarter of the Borrower’s fiscal year based upon the consolidated financial statements delivered pursuant to Section 5.01(a) or (b) and
(ii) each change in the Applicable Rate resulting from a change in the Leverage Ratio shall be effective during the period commencing on and including the date of delivery to the Administrative Agent of such consolidated financial statements
indicating such change and ending on the date immediately preceding the effective date of the next such change; provided that the Leverage Ratio shall be deemed to be in Category 1 (A) at any time that an Event of Default has
occurred and is continuing or (B) if the Borrower fails 

  

 3 

 
to deliver the consolidated financial statements required to be delivered by it pursuant to Section 5.01(a) or (b), during the period from the
expiration of the time for delivery thereof until such consolidated financial statements are delivered. 
  
 “Approved Fund” has the meaning assigned to such term in Section 9.04(b). 
  
 “Arrangers” means J.P. Morgan Securities Inc. and Goldman
Sachs Credit Partners L.P. 
  
 “Asset
Disposition” means (a) any sale, transfer or other disposition (including pursuant to a sale and leaseback transaction but excluding any sale of Securitization Assets pursuant to a Securitization) of any property or asset of Holdings,
the Borrower or any Subsidiary, other than (i) dispositions described in clauses (a), (b), (c), (d) and (e) of Section 6.05, (ii) any disposition resulting in Net Proceeds, whether through a single transaction or a
series of related transactions, not exceeding $1,500,000 and (iii) other dispositions and dividends or distributions resulting in aggregate Net Proceeds not exceeding $10,000,000 during any fiscal year of the Borrower, (b) any casualty or
other insured damage to, or any taking under power of eminent domain or by condemnation or similar proceeding of, any property or asset of Holdings, the Borrower or any Subsidiary, but only in the case of this clause (b) to the extent that
(i) the Net Proceeds therefrom, on an aggregate basis, exceed $10,000,000 in any fiscal year and (ii) the application of the Net Proceeds of such event to the prepayment of Term Borrowings hereunder would not violate any applicable laws,
and (c) any transfer of Securitization Assets in a Securitization (and any subsequent transfer of Securitization Assets that results in any increase in the aggregate funded amount of any Securitization over the greatest aggregate funded amount
previously outstanding thereunder), provided that a Prepayment Event shall only exist with respect to a Securitization to the extent the aggregate funded amount of all such Securitizations outstanding at the time of determination exceeds the
aggregate amount of prepayments of Term Loans previously made hereunder in respect of Securitizations. 
  
 “Assignment and Assumption” means an assignment and assumption entered into by a Lender and an assignee (with the consent of any party
whose consent is required by Section 9.04), and accepted by the Administrative Agent, in the form of Exhibit A or any other form approved by the Administrative Agent. 
  
 “Attributable Debt” means, on any date, in respect of any lease of the Borrower or any Subsidiary entered
into as part of a sale and leaseback transaction subject to Section 6.06, (a) if such lease is a Capital Lease Obligation, the capitalized amount thereof that would appear on a balance sheet of such Person prepared as of such date in
accordance with GAAP and (b) if such lease is not a Capital Lease Obligation, the capitalized amount of the remaining lease payments under such lease that would appear on a balance sheet of such Person prepared as of such date in accordance
with GAAP if such lease were accounted for as a Capital Lease Obligation. 
  

 4 

 “Below Threshold Asset Disposition Proceeds” means the aggregate cumulative amount of
Net Proceeds received after the Effective Date that would have constituted Net Proceeds of an Asset Disposition pursuant to clause (a) or (b) of the definition thereof except for the operation of clause (a)(iii) thereof. 
  
 “Below Threshold Asset Disposition Proceeds Uses” means the
use by the Borrower of Below Threshold Asset Disposition Proceeds to (a) make Investments pursuant to Section 6.04(t), (b) make Restricted Payments pursuant to Section 6.08(a)(vi), or (c) repurchase or repay Indebtedness
pursuant to Section 6.08(b)(viii). 
  
 “Board” means the Board of Governors of the Federal Reserve System of the United States of America. 
  
 “Borrower” means Hawaiian Telcom Communications, Inc., a Delaware corporation, which will be the surviving entity in the merger of the
Borrower and Verizon HoldCo LLC on the Effective Date pursuant to the Acquisition Agreement and all of the Equity Interests of which are owned by Holdings. 
  
 “Borrowing” means (a) Loans of the same Class and Type, made, converted or continued on the same date and, in the case of Eurodollar
Loans, as to which a single Interest Period is in effect or (b) a Swingline Loan. 
  
 “Borrowing Request” means a request by the Borrower for a Borrowing in accordance with Section 2.03. 
  
 “Borrower’s Portion of Excess Cash Flow” means the aggregate cumulative amount of Excess Cash Flow for all fiscal years ending on or
after December 31, 2006 that is not required pursuant to the provisions of Section 2.11(d) to be applied to the prepayment of Term Loans. 
  
 “Business Day” means any day that is not a Saturday, Sunday or other day on which commercial banks in New York City are authorized or
required by law to remain closed; provided that, when used in connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in the London
interbank market. 
  
 “Capital Expenditures”
means, for any period, without duplication, the additions to property, plant and equipment and other capital expenditures of the Borrower and its consolidated Subsidiaries for such period, determined in accordance with GAAP. 
  
 “Capital Lease Obligations” of any Person means the
obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as
capital leases on a balance sheet of such Person under GAAP, and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP. 
  

 5 

 “Change in Control” means: 
  
 (a) the acquisition of ownership, beneficially or of record,
by any Person other than Holdings of any Equity Interest in the Borrower; 
  
 (b) prior to an IPO of Holdings, the failure by the Permitted Holders to own (and retain the right to vote), directly or indirectly through wholly owned investment vehicles, Equity Interests in Holdings representing
more than 50% of each of the aggregate ordinary voting power and aggregate equity value represented by the issued and outstanding Equity Interests in Holdings; 
  

(c) after an IPO of Holdings, the acquisition of ownership, directly or indirectly, beneficially or of record, by any Person or group
(within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder as in effect on the date hereof) other than the Permitted Holders of Equity Interests in Holdings representing more than
35% of the aggregate voting power represented by the outstanding Equity Interests in Holdings and representing a greater percentage of such aggregate ordinary voting power than that represented by Equity Interests in Holdings owned directly and of
record by the Permitted Holders; 
  
 (d)
occupation of a majority of the seats (other than vacant seats) on the board of directors of Holdings by Persons who were neither (i) nominated by the board of directors of Holdings or (ii) appointed by Persons so nominated; 
  
 (e) the occurrence of a “Change of Control”, as
defined in the Senior Subordinated Debt Documents; or 
  
 (f) the occurrence of a “Change of Control”, as defined in the Senior Unsecured Debt Documents. 
  
 “Change in Law” means (a) the adoption of any law, rule or regulation after the date of this Agreement, (b) any change in any
law, rule or regulation or in the interpretation or application thereof by any Governmental Authority after the date of this Agreement or (c) compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.15(b), by any lending
office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any request, guideline or directive (whether or not having the force of law) of any Governmental Authority made or issued after the date of this
Agreement. 
  
 “Class”, when used in reference to
any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are Revolving Loans, Tranche A Term Loans, Tranche B Term Loans or Swingline Loans and, when used in reference to any Commitment, refers to whether such
Commitment is a Revolving Commitment, Tranche A Commitment or Tranche B Commitment. 
  
 “Closing Date” shall mean the date hereof. 
  

 6 

 “CoBank Equity Interests” shall mean investments in non-voting participation
certificates of Co-Bank, ACB acquired by the Borrower in connection with its Loans hereunder from CoBank, ACB. 
  
 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
  
 “Collateral” means any and all “Collateral”, as
defined in any Security Document. 
  
 “Collateral
Agent” means JPMorgan Chase Bank, N.A., in its capacity as collateral agent for the Secured Parties under the Loan Documents. 
  
 “Collateral Agreement” means the Guarantee and Collateral Agreement among Holdings, the Borrower, the Subsidiary Loan Parties party
thereto and the Agent, substantially in the form of Exhibit C-1. 
  
 “Collateral and Guarantee Requirement” means the requirement that: 
  
 (a) the Agent shall have received from each Loan Party either (i) in the case of each Loan Party, a counterpart of the Collateral
Agreement duly executed and delivered on behalf of such Loan Party and, in the case of the Telephone Subsidiary, a counterpart of the Shared Collateral Agreement or (ii) in the case of any Person that becomes a Loan Party after the Effective
Date, a supplement to the Collateral Agreement, in the form specified therein, duly executed and delivered on behalf of such Loan Party; 
  
 (b) all outstanding Equity Interests of the Borrower and each Subsidiary owned by or on behalf of any Loan Party shall have been pledged
pursuant to the Collateral Agreement or the Shared Collateral Agreement, as the case may be (except that the Loan Parties shall not be required to pledge more than 65% of the outstanding voting Equity Interests of any “first-tier” Foreign
Subsidiary directly owned by a Loan Party) and the Agent shall have received all certificates or other instruments representing such Equity Interests, together with stock powers or other instruments of transfer with respect thereto endorsed in
blank; 
  
 (c) all Indebtedness of Holdings, the
Borrower and each Subsidiary that is owing to any Loan Party shall be evidenced by a promissory note and shall have been pledged pursuant to the Collateral Agreement or the Shared Collateral Agreement, as the case may be (except to the extent any
such pledge would violate applicable law), and the Agent shall have received all such promissory notes, together with note powers or other instruments of transfer with respect thereto endorsed in blank, and all such Indebtedness shall be
subordinated to the Obligations pursuant to the Affiliate Subordination Agreement; 
  
 (d) except as otherwise specifically contemplated by any Security Document, all documents and instruments, including Uniform Commercial
Code financing statements, required by law or reasonably requested by the Agent to be 

  

 7 

 
filed, registered or recorded to create the Liens intended to be created by the Collateral Agreement (including any supplements thereto) and the Shared
Collateral Agreement and perfect such Liens to the extent required by, and with the priority required by, the Collateral Agreement and the Shared Collateral Agreement, shall have been filed, registered or recorded or delivered to the Agent for
filing, registration or recording; 
  
 (e) the
Agent shall have received (i) counterparts of a Mortgage with respect to each Mortgaged Property duly executed and delivered by the record owner of such Mortgaged Property, (ii) a policy or policies of title insurance issued by a
nationally recognized title insurance company insuring the Lien of each such Mortgage as a valid first Lien on the Mortgaged Property described therein, free of any other Liens except as expressly permitted by Section 6.02, together with such
endorsements, coinsurance and reinsurance as the Agent or the Required Lenders may reasonably request, and (iii) such abstracts, appraisals, legal opinions and other documents as the Agent or the Required Lenders may reasonably request with
respect to any such Mortgage or Mortgaged Property; and 
  
 (f) except as otherwise specifically contemplated by any Security Document, each Loan Party shall have obtained all consents and approvals required to be obtained by it in connection with the execution and delivery of
all Security Documents (or supplements thereto) to which it is a party, the performance of its obligations thereunder and the granting by it of the Liens thereunder. 
  
 “Commitment” means a Revolving Commitment, Tranche A Commitment or Tranche B Commitment, or any combination
thereof (as the context requires). 
  
 “Communications
Act” means the Communications Act of 1934 and any successor Federal statute, and the rules, regulations and published policies of the FCC thereunder, all as amended and in effect from time to time. 
  
 “Consolidated Cash Interest Expense” means, for any period,
the excess of (a) the sum of (i) the interest expense (including imputed interest expense in respect of Capital Lease Obligations), of the Borrower and the Subsidiaries for such period, determined on a consolidated basis in accordance with
GAAP, plus (ii) from and after a Holdings Restricted Payments Election, the amount of any funds transferred during such period, by way of dividends or otherwise, by the Borrower and the Subsidiaries to Holdings for the purpose of financing
interest expense of Holdings as specified in such election, pursuant to Section 6.08(a)(iii), plus (iii) to the extent not otherwise included in the interest expense of the Borrower and the Subsidiaries for such period, commissions,
discounts, yield, loss on sales and other fees and charges during such period in connection with any Securitizations payable to any person other than the Borrower and the Subsidiaries, plus (iv) any cash payments made during such period in
respect of obligations referred to in clause (b)(ii) below that were amortized or accrued in a previous period, minus (b) the sum of (i) to the extent included in the Borrower’s consolidated interest expense for such
period, amounts attributable to amortization of 

  

 8 

 
financing costs, plus (ii) to the extent included in the Borrower’s consolidated interest expense for such period, non-cash amounts attributable to
amortization of debt discounts or accrued interest payable in kind or other non-cash interest expense, plus (iii) to the extent included in the Borrower’s consolidated interest expense for such period, any one time financing fees,
including those paid in connection with the Transactions, upon entering into any Securitization or in connection with any amendment of the Agreement and any commitment fees in respect of Tranche A Commitments, plus (iv) cash interest
income of the Borrower and the Subsidiaries for such period. For purposes of the foregoing, interest expense of any Person shall be determined after giving effect to any net payments made or received by such Person with respect to interest rate Swap
Agreements (other than early termination payments). 
  
 “Consolidated EBITDA” means, for any period, Consolidated Net Income for such period plus (a) without duplication and to the extent deducted in determining such Consolidated Net Income, the sum of (i) consolidated
interest expense for such period (net of interest income for such period), (ii) consolidated income tax expense for such period, including state franchise and similar taxes, (iii) all amounts attributable to depreciation and amortization
for such period, (iv) any extraordinary or non-cash charges for such period (provided, however, that any cash payment or expenditure made with respect to any such non-cash charge shall be subtracted in computing Consolidated
EBITDA during the period in which such cash payment or expenditure is made), including, without limitation, any non-cash compensation charge arising from any grant of stock, stock options or other equity-based awards and non-cash pension and
post-employment benefit expenses, (vi) customary non-recurring fees and expenses of the Borrower and the Subsidiaries payable in connection with the incurrence of Long-Term Indebtedness permitted hereunder or any Permitted Acquisition,
(vii) other non-recurring charges and expenses, including with respect to severance costs, provided that such charges or expenses are identified as nonrecurring and set forth in reasonable detail in a schedule to the certificate of a Financial
Officer pursuant to Section 5.01(d)(x), (viii) fees paid under the Management Agreement, as in effect on the Effective Date, (ix) any reduction in consolidated revenues during such period attributable to the “customer
appreciation bill credit” of the Borrower and the Subsidiaries to the extent reimbursed or scheduled to be reimbursed by Verizon and its Affiliates (but excluding any such non-cash gains in respect of which cash was received in a prior period
or will be received in a future period), (x) any non-cash decrease in consolidated revenues during such period resulting from purchase accounting adjustments made in accordance with GAAP in connection with the Acquisition or any Permitted
Acquisitions, and (xi) any reduction in consolidated revenues during such period attributable to out-of-period billing adjustments to the extent related to periods prior to the Effective Date, and minus (b) without duplication and
to the extent included in determining such Consolidated Net Income, the sum of (i) any non-cash gains or other non-cash items of income for such period (provided that any cash received in a subsequent period in respect of any such
non-cash gain shall be included in Consolidated EBITDA for the period in which received), (ii) any increase in consolidated revenues during such period resulting from purchase accounting adjustments made in accordance with GAAP in connection
with the Acquisition or any Permitted Acquisition and (iii) any increase in consolidated revenues during such period attributable to out-of-period billing adjustments to the extent related to 

  

 9 

 
periods prior to the Effective Date, all determined on a consolidated basis in accordance with GAAP. For purposes of calculating the Leverage Ratio and the
Senior Secured Leverage Ratio as of any date, if the Borrower or any consolidated Subsidiary has made any Permitted Acquisition or sale, transfer, lease or other disposition outside of the ordinary course of business of a Subsidiary or of assets
constituting a business unit, in each case as permitted by Section 6.05, during the period of four consecutive fiscal quarters (a “Reference Period”) most recently ended on or prior to such date, Consolidated EBITDA for the
such Reference Period shall be calculated after giving pro forma effect thereto, as if such Permitted Acquisition or sale, transfer, lease or other disposition (and any related incurrence, repayment or assumption of Indebtedness with
any new Indebtedness being deemed to be amortized over the applicable testing period in accordance with its terms) had occurred on the first day of such Reference Period. 
  
 “Consolidated Net Income” means, for any period, the net income or loss of the Borrower and the
Subsidiaries for such period determined on a consolidated basis in accordance with GAAP; provided that: 
  
 (a) (A) net income for such period of any Person that is not a subsidiary of such person, or that is accounted for by the equity method of
accounting, shall be included only to the extent of the amount of dividends or distributions paid in cash (or to the extent converted into cash) to the referent Person or a subsidiary thereof in respect of such period and (B) the net income for
such period shall include any ordinary course dividend distribution or other payment in cash received from any person in excess of the amounts included in clause (A); and 
  
 (b) there shall be excluded: (i) accruals and reserves that are established within twelve months after the Effective
Date and that are so required to be established in accordance with GAAP; provided that any such accruals or reserves paid in cash shall be deducted from Consolidated Net Income for the period in which paid unless excluded pursuant to another
clause of this definition; 
  
 (ii) the income or
loss of any Person accrued prior to the date it becomes a Subsidiary or is merged into or consolidated with the Borrower or any Subsidiary or the date that such Person’s assets are acquired by the Borrower or any Subsidiary; 
  
 (iii) the cumulative effect of any change in accounting
principles during such period; 
  
 (iv) any gain
or loss realized upon the sale or other disposition of any assets of the Borrower or its Subsidiaries that is not sold or otherwise disposed of in the ordinary course of business and any gain or loss realized upon the sale or other disposition of
any Equity Interests of any Person; 
  
 (v) any
non-cash SFAS 133 income (or loss) related to hedging activities; 
  
 (vi) all deferred financing costs written off, premiums paid and other net gains or losses in connection with any early extinguishment of Indebtedness; 
  

 10 

 (vii) any non-cash impairment charges resulting from the application of SFAS
Nos. 142 and 144 and the amortization of intangibles arising pursuant to SFAS No. 141; 
  
 (viii) any non-cash expense or gain related to recording of the fair market value of Swap Agreements, in each case entered into in the
ordinary course of business and not for speculative purposes; and 
  
 (ix) unrealized gains and losses relating to hedging transactions and mark-to-market of Indebtedness denominated in foreign currencies resulting from the applications of FAS 52. 
  
 “Consolidated Revenues” means, for any period, the
consolidated revenues of the Borrower and the Subsidiaries for such period determined on a consolidated basis in accordance with GAAP plus (i) any reduction in consolidated revenues during such period attributable to the “customer
appreciation bill credit” of the Borrower and the Subsidiaries to the extent reimbursed or scheduled to be reimbursed by Verizon and its Affiliates (provided that any such reimbursement shall not be included in consolidated revenues in
any future period), (ii) any non-cash decrease in consolidated revenues during such period resulting from purchase accounting adjustments made in accordance with GAAP in connection with the Acquisition or any Permitted Acquisitions, and
(iii) any reduction in consolidated revenues during such period attributable to out of period billing adjustments to the extent related to periods prior to the Effective Date, and minus without duplication and to the extent included in
determining such Consolidated Revenues, the sum of (i) any increase in consolidated revenues during such period resulting from purchase accounting adjustments made in accordance with GAAP in connection with the Acquisition or any Permitted
Acquisition and (ii) any increase in consolidated revenues during such period attributable to out-of-period billing adjustments to the extent related to periods prior to the Effective Date, all determined on a consolidated basis in accordance
with GAAP. 
  
 “Consolidated Total Assets” means,
as at any date of determination, the aggregate amount of assets reflected on the consolidated balance sheet of the Borrower and the Subsidiaries most recently delivered by the Borrower pursuant to Section 5.01 on or prior to such date of
determination. 
  
 “Contribution Agreement” means
the agreement contemplated by Section 5.18(c) of the Acquisition Agreement pursuant to which the capital stock of the Telephone Subsidiary was contributed to the Borrower and other assets constituting portions of the Acquired Business were
contributed to a wholly owned Subsidiary of the Borrower. 
  
 “Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or
otherwise. “Controlling” and “Controlled” have meanings correlative thereto. 
  

 11 

 “Cure Amount” has the meaning assigned to such term in Article VII. 
  
 “Cure Right” has the meaning assigned to such term in
Article VII. 
  
 “Debentures” means the 7%
Debentures and the 7.375% Debentures. 
  
 “Debt
Issuance” means the incurrence by the Borrower or any Subsidiary of any Indebtedness, other than Indebtedness permitted by Section 6.01(a) (i)-(xvii). 
  
 “Default” means any event or condition that constitutes an Event of Default or which upon notice, lapse of
time or both would, unless cured or waived, become an Event of Default. 
  
 “Defaulting Lender” means any Lender which has defaulted in the performance of any of its material obligations to the Borrower under this Agreement for so long as such Lender has not cured or remedied all such defaults.

  
 “Designated Excess Cash Flow Expenditures”
means the cash expenditures made by the Borrower and the Subsidiaries from the Borrower’s Portion of Excess Cash Flow (a) to make Restricted Payments pursuant to Section 6.08(a)(v)(A), (b) to repurchase or repay Indebtedness
pursuant to Section 6.08(b)(vi)(A), or (c) to make Investments pursuant to Section 6.04(d) or (l). 
  
 “Disclosed Matters” means the actions, suits and proceedings and the environmental matters disclosed in Schedule 3.06. 

 
 “Domestic Subsidiary” means any Subsidiary that is
organized under the laws of the United States of America or any State thereof or the District of Columbia. 
  
 “dollars” or “$” refers to lawful money of the United States of America. 
  
 “Effective Date” means the date on which the conditions
specified in Section 4.01 are satisfied (or waived in accordance with Section 9.02). 
  
 “Eligible Equity Proceeds” means Equity Proceeds received by Holdings and contributed by Holdings in cash to the common equity of the Borrower, other than any such Equity Proceeds
(i) constituting Cure Amounts from the issuance of Permitted Cure Securities or (ii) received by Holdings from officers, employees, directors or consultants of Holdings, the Borrower or its Subsidiaries under stock purchase, stock option
or other incentive plans or arrangements. 
  
 “Eligible
Equity Proceeds Uses” means the use by the Borrower of Eligible Equity Proceeds to (a) make Investments pursuant to Section 6.04(p), (b) make Restricted Payments pursuant to Section 6.08(a)(iv), or (c) repurchase or
repay Indebtedness pursuant to Section 6.08(b)(vii). 
  
 “Environmental Laws” means all applicable federal, state, and local laws (including common law), regulations, rules, ordinances, codes, decrees, judgments, 

  

 12 

 
directives, orders (including consent orders), and binding agreements with any Governmental Authority in each case, relating to protection of the
environment, natural resources, human health and safety from exposure to Hazardous Materials or the presence, Release of, or exposure to, Hazardous Materials, or the generation, manufacture, processing, distribution, use, treatment, storage,
transport, recycling or handling of, or the arrangement for such activities with respect to, Hazardous Materials. 
  
 “Environmental Liability” means any liability, claim, action, suit, judgment or order under or relating to any Environmental Law for any
damages, injunctive relief, losses, fines, penalties, fees, expenses (including reasonable fees and expenses of attorneys and consultants) or costs, whether contingent or otherwise, including those arising from or relating to: (a) compliance or
non-compliance with any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release of any Hazardous
Materials or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
  
 “Equity Financing” means (i) purchases by Permitted Holders of Equity Interests of Holdings and/or
contributions by Permitted Holders to the equity capital of Holdings for aggregate cash consideration of $425,000,000 and (ii) the use by Holdings of the full amount of such cash received from the Permitted Holders (other than cash previously
utilized to pay such expenses) to make a cash contribution to the common equity of the Borrower, in each case on or prior to the Effective Date. 
  
 “Equity Interests” means shares of capital stock, partnership interests, membership interests in a limited liability company, beneficial
interests in a trust or other equity ownership interests in a Person of whatever nature, and any warrants, options or other rights entitling the holder thereof to purchase or acquire any of the foregoing. 
  
 “Equity Proceeds” means the Net Proceeds received by
Holdings from contributions to its common equity or from the issuance and sale of its common Equity Interests or Non-Cash Pay Preferred Stock, in each case other than pursuant to the Equity Financing. 
  
 “ERISA” means the Employee Retirement Income Security Act of
1974, as amended from time to time. 
  
 “ERISA
Affiliate” means any trade or business (whether or not incorporated) that, together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the Code or, solely for purposes of Section 302 of ERISA
and Section 412 of the Code, is treated as a single employer under Section 414 of the Code. 
  
 “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued
thereunder with respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding deficiency” (as defined in Section 412 of 

  

 13 

 
the Code or Section 302 of ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of
ERISA of an application for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to the termination of
any Plan; (e) the receipt by the Borrower or any ERISA Affiliate from the PBGC or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to appoint a trustee to administer any Plan; (f) the incurrence
by the Borrower or any of its ERISA Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt by the Borrower or any ERISA Affiliate of any notice, or the receipt by
any Multiemployer Plan from the Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the
meaning of Title IV of ERISA. 
  
 “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the Adjusted LIBO Rate.

  
 “Event of Default” has the meaning assigned
to such term in Article VII. 
  
 “Excess Cash
Flow” means, for any fiscal year, the sum (without duplication) of: 
  
 (a) Consolidated Net Income for such fiscal year, adjusted to exclude any gains or losses attributable to Prepayment Events; plus 
  
 (b) depreciation, amortization and other non-cash charges or losses deducted in determining such
Consolidated Net Income for such fiscal year; plus 
  
 (c) the sum of (i) the amount, if any, by which Net Working Capital decreased during such fiscal year plus (ii) the net amount, if any, by which the deferred income taxes of Holdings, the Borrower and its
consolidated Subsidiaries increased during such fiscal year; minus 
  
 (d) the sum of (i) any non-cash gains included in determining such Consolidated Net Income for such fiscal year plus (ii) the amount, if any, by which Net Working Capital increased during such fiscal year
plus (iii) the net amount, if any, by which the deferred income taxes of Holdings, the Borrower and its consolidated Subsidiaries decreased during such fiscal year; minus 
  
 (e) the sum of (i) Capital Expenditures for such fiscal year (except to the extent attributable to the
incurrence of Capital Lease Obligations or otherwise financed by incurring Long-Term Indebtedness and except to the extent made with Net Proceeds in respect of Prepayment Events, or deducted in a prior fiscal year pursuant to clause (k) of this
definition) plus (ii) cash consideration paid during such fiscal year to make acquisitions or other capital investments (other 

  

 14 

 
than Permitted Investments and except to the extent financed by incurring Long-Term Indebtedness); minus 
  
 (f) Taxes for which reserves have been established, to the
extent not reflected in the computation of Consolidated Net Income, provided that any amount so deducted shall be added to Excess Cash Flow in respect of any subsequent fiscal year in which such Taxes reduced Consolidated Net Income; minus

  
 (g) cash expenditures made in respect of Swap
Agreements during such fiscal year, to the extent not reflected in the computation of Consolidated Net Income; plus 
  
 (h) cash payments received in respect of Swap Agreements during such fiscal year to the extent not included in the computation of
Consolidated Net Income; minus. 
  
 (i) the aggregate principal amount of Long-Term Indebtedness repaid or prepaid by the Borrower and its Subsidiaries during such fiscal year, excluding (i) Indebtedness in respect of Revolving Loans and Letters of Credit (but only
to the extent Revolving Commitments were not simultaneously permanently reduced), (ii) Term Loans prepaid pursuant to Section 2.11(c) or (d) and (iii) repayments or prepayments of Long-Term Indebtedness made with Eligible Equity
Proceeds or financed by incurring other Long-Term Indebtedness; minus 
  
 (j) permitted dividends and distributions or repurchases of its Equity Interests paid in cash by the Borrower during such fiscal year and permitted dividends paid in cash by any Subsidiary during such fiscal year
to any Person other than Holdings, the Borrower or any of the Subsidiaries, in each case pursuant to and in accordance with Section 6.08, other than Section 6.08(iv) or (v)(A); minus 
  
 (k) Capital Expenditures that the Borrower or any Subsidiary
shall, during such fiscal year, become obligated to make but that are not made during such fiscal year, provided that the Borrower shall deliver a certificate to the Administrative Agent not later than 105 days after the end of such
fiscal year, signed by an officer of the Borrower and certifying that such Capital Expenditures and the delivery of the related equipment will be made in the following fiscal year; minus 
  
 (l) to the extent not deducted in the computation of Net
Proceeds in respect of any asset disposition, casualty or condemnation giving rise thereto, the amount of any mandatory prepayment of Indebtedness (other than Indebtedness created hereunder or under any other Loan Document), together with any
interest, premium or penalties required to be paid (and actually paid) in connection therewith; minus 
  

 15 

 (m) amounts paid in cash during such fiscal year on account of items that were
accounted for as non-cash reductions in determining Consolidated Net Income in a prior fiscal year and were added back in determining Excess Cash Flow in respect of such prior fiscal year. 
  
 “Excluded Taxes” means, with respect to the Administrative
Agent, any Lender, the Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by the United States of
America, or by the jurisdiction under the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, in which its applicable lending office is located, (b) any branch profits taxes
imposed by the United States of America or any similar tax imposed by any other jurisdiction described in clause (a) above, (c) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under
Section 2.19(b)), any withholding tax that is in effect and would apply to amounts payable to such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office), except to the extent that
such Foreign Lender (or its assignor, if any) was entitled, at the time of designation of a new lending office (or assignment), to receive additional amounts from the Borrower with respect to any withholding tax pursuant to Section 2.17(a), and
(d) any withholding tax that is attributable to such Foreign Lender’s failure to comply with Section 2.17(e). 
  
 “FCC” means the Federal Communications Commission and any successor agency of the Federal government administering the Communications
Act. 
  
 “FCC Licenses” means all licenses,
certificates, permits or other authorizations granted by the FCC pursuant to the Communications Act which are required for the conduct of any business or activity thereunder. 
  
 “Federal Funds Effective Rate” means, for any day, the weighted average (rounded upwards, if necessary, to
the next 1/100 of 1%) of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve Bank of New York,
or, if such rate is not so published for any day that is a Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received by the Administrative Agent from three
Federal funds brokers of recognized standing selected by it. 
  
 “Financial Covenants” means the covenants set forth in Sections 6.14, 6.15 and 6.16. 
  
 “Financial Officer” means the chief financial officer, principal accounting officer, treasurer or controller of the Borrower. 

 
 “Financing Transactions” means (a) the execution,
delivery and performance by each Loan Party of the Loan Documents to which it is to be a party, the borrowing of Loans, the use of the proceeds thereof and the issuance of Letters of Credit 

  

 16 

 
hereunder, (b) the execution, delivery and performance by each Loan Party of the Senior Subordinated Debt Documents to which it is to be a party, the
issuance of the Senior Subordinated Debt and the use of the proceeds thereof, (c) the execution, delivery and performance by each Loan Party of the Senior Unsecured Debt Documents to which it is to be a party, the issuance of the Senior
Unsecured Debt and the use of the proceeds thereof and (d) the Equity Financing. 
  
 “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction other than that in which the Borrower is located. For purposes of this definition, the United States of America,
each State thereof and the District of Columbia shall be deemed to constitute a single jurisdiction. 
  
 “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary. 
  
 “GAAP” means generally accepted accounting principles in the
United States of America. 
  
 “Governmental
Authority” means the government of the United States of America, any other nation or any political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity
exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government. 
  
 “Guarantee” of or by any Person (the “guarantor”) means any obligation, contingent or otherwise, of the guarantor
guaranteeing or having the economic effect of guaranteeing any Indebtedness or other obligation of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds for the purchase of) any security for the
payment thereof, (b) to purchase or lease property, securities or services for the purpose of assuring the owner of such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account party in respect of any letter of credit or letter of guaranty issued to
support such Indebtedness or obligation; provided, that the term Guarantee shall not include endorsements for collection or deposit in the ordinary course of business or customary and reasonable indemnity obligations in effect on the Closing
Date or entered into in connection with any acquisition or disposition of assets permitted under this Agreement. 
  
 “Guarantors” means Holdings and the Subsidiary Loan Parties. 
  
 “Hazardous Materials” means (i) any petroleum products or byproducts, radon gas, asbestos, urea
formaldehyde foam insulation, polychlorinated biphenyls, chlorofluorocarbons and all other ozone-depleting substances; or (ii) any chemical, 

  

 17 

 
material, substance or waste that is prohibited, limited or regulated as a “hazardous” or “toxic” material, substance or waste by or
pursuant to any applicable Environmental Law. 
  
 “Holdings” means Hawaiian Telcom HoldCo, Inc., a Delaware corporation. 
  
 “Holdings Restricted Payments Election” shall have the meaning set forth in Section 6.08(a)(iii). 
  
 “HPUC” means the Hawaii Public Utilities Commission and any
successor agency thereto. 
  
 “Indebtedness” of
any Person means, without duplication, (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person under
conditional sale agreements relating to property acquired by such Person, (d) all obligations of such Person in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course
of business) to the extent the same would be required to be shown as a liability on a balance sheet prepared in accordance with GAAP, (e) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right,
contingent or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or not the Indebtedness secured thereby has been assumed, (f) all Guarantees by such Person of Indebtedness of others, (g) all
Capital Lease Obligations of such Person, (h) the principal component of all obligations, contingent or otherwise, of such Person as an account party in respect of letters of credit and letters of guaranty and (i) the principal component
of all obligations, contingent or otherwise, of such Person in respect of bankers’ acceptances. The Indebtedness of any Person shall include the Indebtedness of any other entity (including any partnership in which such Person is a general
partner) to the extent such Person is liable therefor as a result of such Person’s ownership interest in or other relationship with such entity, except to the extent the terms of such Indebtedness provide that such Person is not liable
therefor. 
  
 “Indemnified Taxes” means Taxes
other than Excluded Taxes and Other Taxes. 
  
 “Information Memorandum” means the Confidential Information Memorandum dated April 2005, as modified or supplemented prior to the Effective Date, relating to Holdings, the Borrower and the Transactions. 
  
 “Initial Lenders” means JPMorgan Chase Bank, N.A., Goldman
Sachs Credit Partners L.P. and Lehman Commercial Paper Inc. 
  
 “Installment Date” has the meaning assigned to such term in Section 2.10(a). 
  
 “Intellectual Property Agreement” means the Intellectual Property Agreement entered into between the Borrower, Holdings, GTE Corporation
and Verizon 

  

 18 

 
HoldCo LLC pursuant to the Acquisition Agreement, the form of which appears as Exhibit C to the Acquisition Agreement. 
  
 “Interest Election Request” means a request by the Borrower
to convert or continue a Revolving Borrowing or Term Borrowing in accordance with Section 2.07. 
  
 “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline Loan), the last day of each March, June,
September and December, (b) with respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than three
months’ duration, each day prior to the last day of such Interest Period that occurs at intervals of three months’ duration after the first day of such Interest Period and (c) with respect to any Swingline Loan, the day that such Loan
is required to be repaid. 
  
 “Interest Period”
means, with respect to any Eurodollar Borrowing, the period commencing on the date of such Borrowing and ending on the numerically corresponding day in the calendar month that is one, two, three or six months thereafter (or nine or 12
months thereafter if, at the time of the relevant Borrowing, all Lenders participating therein agree to make an interest period of such duration available), as the Borrower may elect; provided, that (a) if any Interest Period would end
on a day other than a Business Day, such Interest Period shall be extended to the next succeeding Business Day unless such next succeeding Business Day would fall in the next calendar month, in which case such Interest Period shall end on the next
preceding Business Day and (b) any Interest Period that commences on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the last calendar month of such Interest Period) shall end on the
last Business Day of the last calendar month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter shall be the effective date of the most recent conversion
or continuation of such Borrowing. 
  
 “Investment” means purchasing, holding or acquiring (including pursuant to any merger with any Person that was not a wholly-owned Subsidiary prior to such merger) any Equity Interest, evidences of indebtedness or other
securities (including any option, warrant or other right to acquire any of the foregoing) of, or making or permitting to exist any loans or advances (other than commercially reasonable extensions of trade credit) to, guaranteeing any obligations of,
or making or permitting to exist any investment in, any other Person, or purchasing or otherwise acquiring (in one transaction or a series of transactions) any assets of any Person constituting a business unit. The amount, as of any date of
determination, of any Investment shall be the original cost of such Investment (including any Indebtedness of a Person existing at the time such Person becomes a Subsidiary in connection with any Investment and any Indebtedness assumed in connection
with any acquisition of assets), plus the cost of all additions, as of such date, thereto and minus the amount, as of such date, of any portion of such Investment repaid to the investor in cash or property as a repayment of principal
or a return of capital (including pursuant to any sale or disposition of such Investment), as the case may be, but without any other adjustments for increases or decreases in value, or write-ups, write-downs 

  

 19 

 
or write-offs with respect to such Investment. In determining the amount of any Investment or repayment involving a transfer of any property other than cash,
such property shall be valued at its fair market value at the time of such transfer. 
  
 “IPO” means a bona fide underwritten initial public offering of voting common stock of Holdings which generate cash proceeds to Holdings of at least $100,000,000. 
  
 “Issuing Bank” means JPMorgan Chase Bank, N.A., in its
capacity as the issuer of Letters of Credit hereunder, and each other Lender appointed as an Issuing Bank hereunder pursuant to Section 2.05(k) and, in each case, its successors in such capacity as provided in Section 2.05(i). An Issuing
Bank may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of such Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect to Letters of Credit issued by such
Affiliate. 
  
 “LC Disbursement” means a payment
made by the Issuing Bank pursuant to a Letter of Credit. 
  
 “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements that have not yet been
reimbursed by or on behalf of the Borrower at such time. The LC Exposure of any Revolving Lender at any time shall be its Applicable Percentage of the total LC Exposure at such time. 
  
 “Lenders” means the Persons listed on Schedule 2.01 and any other Person that shall have become a
party hereto pursuant to an Assignment and Assumption, other than any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless the context otherwise requires, the term “Lenders” includes the Swingline
Lender. 
  
 “Letter of Credit” means any letter
of credit issued pursuant to this Agreement. 
  
 “Leverage
Ratio” means, on any date, the ratio of (a) Total Indebtedness as of such date to (b) Adjusted Consolidated EBITDA for the period of four consecutive fiscal quarters of the Borrower most recently ended on or prior to such date.

  
 “LIBO Rate” means, with respect to any
Eurodollar Borrowing for any Interest Period, the rate appearing on Page 3750 of the Telerate Service (or on any successor or substitute page of such service, or any successor to or substitute for such service, providing rate quotations comparable
to those currently provided on such page of such service, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to dollar deposits in the London interbank market) at
approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, as the rate for dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is not available at such time
for any reason, then the “LIBO Rate” with respect to such Eurodollar Borrowing for 

  

 20 

 
such Interest Period shall be the rate at which dollar deposits of $5,000,000 and for a maturity comparable to such Interest Period are offered by the
principal London office of the Administrative Agent in immediately available funds in the London interbank market at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period. 
  
 “License Subsidiary” means any wholly-owned Subsidiary of
the Borrower designated as a License Subsidiary by notice to the Administrative Agent; provided, however, that (i) such Subsidiary has no obligations or liabilities other than as permitted by Section 6.17, (ii) the sole
activity of such Subsidiary consists of owning one or more FCC Licenses, (iii) all the Equity Interests of such Subsidiary are pledged to the Collateral Agent in accordance with the terms of the Collateral Agreement and (iv) Holdings, the
Borrower and such Subsidiary have entered into a Special Purpose Subsidiary Funding Agreement. 
  
 “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the interest of a
vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to such asset and (c) in the case of
securities, any purchase option, call or similar right of a third party with respect to such securities. 
  
 “Loan Documents” means this Agreement and the Security Documents. 
  
 “Loan Parties” means Holdings, the Borrower and the Subsidiary Loan Parties. 
  
 “Loans” means the loans made by the Lenders to the Borrower
pursuant to this Agreement. 
  
 “Long-Term
Indebtedness” means any Indebtedness that, in accordance with GAAP, constitutes (or, when incurred, constituted) a long-term liability. For purposes of determining the Long-Term Indebtedness of Holdings, the Borrower and the Subsidiaries,
Indebtedness of Holdings, the Borrower or any Subsidiary owed to Holdings, the Borrower or a Subsidiary shall be excluded. 
  
 “Management Agreement” means the Management Agreement dated as of the Effective Date among the Borrower, Holdings and the Sponsor.

  
 “Management Group” means the group of
individuals consisting of the directors, executive officers and other management personnel of the Borrower or Holdings on the Closing Date together with (i) each new director elected to such board of directors by, or with the approval of,
Permitted Holders holding, directly or indirectly, more than 50% of the aggregate ordinary voting power of the represented by the issued and outstanding Equity Interests in the Borrower or whose nomination for such election was approved by a vote of
a majority of the directors on such board of directors and (ii) executive officers and other management personnel of the Borrower or Holdings hired at 

  

 21 

 
a time when the directors that are members of the Management Group constitute a majority of the directors of the Borrower or Holdings. 
  
 “Margin Stock” shall have the meaning assigned to such term
in Regulation U of the Board. 
  
 “Material Adverse
Effect” means a material adverse effect on the business, operations or financial condition of Holdings, the Borrower and the Subsidiaries, taken as a whole. 
  
 “Material Indebtedness” means Indebtedness (other than the Loans and Letters of Credit), or obligations in
respect of one or more Swap Agreements, of any one or more of Holdings, the Borrower and its Subsidiaries in an aggregate principal amount exceeding $12,500,000. For purposes of determining Material Indebtedness, the “principal amount” of
the obligations of Holdings, the Borrower or any Subsidiary in respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to any netting agreements) that Holdings, the Borrower or such Subsidiary would be required
to pay if such Swap Agreement were terminated at such time. 
  
 “Material Subsidiary” means (i) each License Subsidiary and any Securitization Vehicle and (ii) any other Subsidiary, including its subsidiaries, which meets any of the following conditions:
(a) Holdings’, the Borrower’s and the other Subsidiaries’ investments in and advances to such Subsidiary exceed 5% of the consolidated total assets of Holdings and the Subsidiaries as of the end of the most recently completed
fiscal year, (b) the consolidated assets of such Subsidiary exceed 5% of the consolidated total assets of Holdings and the Subsidiaries as of the end of the most recently completed fiscal year or (c) the consolidated pre-tax income from
continuing operations of such Subsidiary for the most recently ended period of four consecutive fiscal quarters exceeds 5% of the consolidated pre-tax income from continuing operations of Holdings and the Subsidiaries for such period. 
  
 “Moody’s” means Moody’s Investors Service, Inc.

  
 “Mortgage” means any mortgage, deed of trust,
assignment of leases and rents or other security document granting a Lien on any real property and improvements thereto to secure the Obligations delivered after the Effective Date pursuant to Section 5.12. Each Mortgage shall be satisfactory
in form and substance to the Collateral Agent. 
  
 “Mortgaged Property” means, each parcel of real property and the improvements thereto owned by a Loan Party and identified as a Mortgaged Property on Schedule 3.05, and each other parcel of real property and
improvements thereto acquired by a Loan Party after the Effective Date with respect to which a Mortgage is granted pursuant to Section 5.12. 
  
 “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of ERISA. 
  

 22 

 “Net Proceeds” means, with respect to any event (a) the cash proceeds actually
received in respect of such event including (i) any cash received in respect of any debt instrument or equity security received as non-cash proceeds, but only as and when received, (ii) in the case of a casualty, insurance proceeds, and
(iii) in the case of a condemnation or similar event, condemnation awards and similar payments, net of (b) the sum of (i) all fees and out-of-pocket expenses (including underwriting discounts and commissions and collection expenses)
paid or payable by Holdings, the Borrower and the Subsidiaries to third parties (including Affiliates, if permitted by Section 6.09) in connection with such event, (ii) in the case of a sale, transfer or other disposition of an asset
(including pursuant to a sale and leaseback transaction or a casualty or a condemnation or similar proceeding), the amount of all payments required to be made by Holdings, the Borrower and the Subsidiaries as a result of such event to repay
Indebtedness (other than Loans) secured by such asset or otherwise subject to mandatory prepayment as a result of such event, and (iii) the amount of all taxes paid (or reasonably estimated to be payable) by Holdings, the Borrower and the
Subsidiaries (provided that such amounts withheld or estimated for the payment of taxes shall, to the extent not utilized for the payment of taxes, be deemed to be Net Proceeds received when such nonutilization is determined), and the amount of any
reserves established by Holdings, the Borrower and the Subsidiaries to fund contingent liabilities reasonably estimated to be payable, in each case that are directly attributable to such event (provided that any reversal of any such reserves will be
deemed to be Net Proceeds received at the time and in the amount of such reversal), in each case as determined reasonably and in good faith by the chief financial officer of the Borrower. 
  
 “Net Working Capital” means, at any date, (a) the consolidated current assets of Holdings, the
Borrower and its consolidated Subsidiaries as of such date (excluding cash, Permitted Investments and current deferred income taxes) minus (b) the consolidated current liabilities of Holdings, the Borrower and its consolidated
Subsidiaries as of such date (excluding current liabilities in respect of Indebtedness and current deferred income taxes). Net Working Capital at any date may be a positive or negative number. Net Working Capital increases when it becomes more
positive or less negative and decreases when it becomes less positive or more negative. 
  
 “Non-Cash Pay Preferred Stock” means preferred stock or other preferred securities or membership interests of Holdings or the Borrower which (i) are not mandatorily redeemable, in whole or part,
or required to be repurchased or reacquired, in whole or part, by Holdings, the Borrower or any Subsidiary, and which do not require any payment of cash dividends or distributions, in each case, prior to the date that is six months after the
Tranche B Maturity Date, (ii) are not secured by any assets of Holdings, the Borrower or any Subsidiary, (iii) are not guaranteed by Holdings, the Borrower or any Subsidiary and (iv) are not exchangeable or convertible into
Indebtedness of Holdings, the Borrower or any Subsidiary, except at the option of the Borrower and subject to compliance with Section 6.01(a), or any preferred stock or other Equity Interest (other than common equity of Holdings or other
Non-Cash Pay Preferred Stock of Holdings). 
  
 “Obligations” has the meaning assigned to such term in the Collateral Agreement. 
  

 23 

 “Operating Licenses” has the meaning assigned to such term in Section 3.08.

  
 “Other Taxes” means any and all present or
future recording, stamp, documentary, excise, transfer, sales, property or similar taxes, charges or levies arising from any payment made under any Loan Document or from the execution, delivery or enforcement of, or otherwise with respect to, any
Loan Document. 
  
 “Participant” has the meaning
set forth in Section 9.04. 
  
 “PBGC” means
the Pension Benefit Guaranty Corporation referred to and defined in ERISA and any successor entity performing similar functions. 
  
 “Perfection Certificate” means a certificate in the form of Exhibit D to the Collateral Agreement or any other form approved by the
Collateral Agent. 
  
 “Permitted Acquisitions”
means any acquisition (by merger, consolidation or otherwise) by the Borrower or a Subsidiary Loan Party of all or substantially all the assets of, or all the Equity Interests in, a Person or division or line of business of a Person, if
(a) immediately after giving effect thereto, no Event of Default has occurred and is continuing or would result therefrom, (b) immediately after giving effect thereto, the aggregate amount of outstanding Revolving Loans does not exceed an
amount which is $50,000,000 less than the Revolving Commitments then in effect, (c) such acquired Person is organized under the laws of the United States of America or any State thereof or the District of Columbia and substantially all the
business of such acquired Person or business consists of one or more Permitted Businesses and not less than 80% of the consolidated gross operating revenues of such acquired Person or business for the most recently ended period of twelve months is
derived from domestic operations in the United States of America, (d) each Subsidiary resulting from such acquisition (and which survives such acquisition) other than any Foreign Subsidiary, shall be a Subsidiary Loan Party and at least 80% of
the Equity Interests of each such Subsidiary shall be owned directly by the Borrower and/or Subsidiary Loan Parties and shall have been (or within 10 Business Days (or such longer period as may be acceptable to the Agent) after such acquisition
shall be) pledged pursuant to the Collateral Agreement or the Shared Collateral Agreement, as applicable (subject to the limitations of the pledge of Equity Interests of Foreign Subsidiaries set forth in the definition of “Collateral and
Guarantee Requirement”), (e) the Collateral and Guarantee Requirement shall have been (or within 10 Business Days (or such longer period as may be acceptable to the Agent) after such acquisition shall be) satisfied with respect to each
such Subsidiary, (f) the Borrower and the Subsidiaries are in Pro Forma Compliance, after giving effect to such acquisition, computed as of the last day of the most recently ended fiscal quarter of the Borrower for which financial statements
are available, as if such acquisition had occurred on the first day of the relevant period for testing compliance, (g) the aggregate consideration (including the amount of Indebtedness assumed) paid by Holdings and its Subsidiaries for such
acquisition and all prior acquisitions since the Effective Date does not exceed an amount equal to $150,000,000; provided, however, that such aggregate limit shall not apply at any time after a Financial Officer first delivers a
certificate pursuant to Section 5.01(d) 

  

 24 

 
setting forth a Leverage Ratio of less than 5.00:1.00 and (h) the Borrower has delivered to the Agent an officer’s certificate to the effect set
forth in clauses (a), (b), (c), (d), (e), (f) and (g) above, together with all relevant financial information for the Person or assets acquired and reasonably detailed calculations demonstrating satisfaction of the requirement set
forth in clause (f) above. 
  
 “Permitted
Business” means the provision of local and long-distance telephone services, broadband wireless telecommunications services, internet access services, video services and directory publishing services, and, in each case, businesses
reasonably related, incidental or ancillary thereto and in the case of any Securitization Vehicle, Securitizations. 
  
 “Permitted Cure Security” shall mean common stock of Holdings or Non-Cash Pay Preferred Stock. 
  
 “Permitted Encumbrances” means: 
  
 (a) Liens imposed by law or any Governmental Authority for
taxes, assessments or other governmental charges or levies that are not yet due or are being contested in compliance with Section 5.05; 
  
 (b) carriers’, warehousemen’s, mechanics’, materialmen’s, landlord’s, repairmen’s, construction and other
like Liens, arising in the ordinary course of business and securing obligations that are not overdue by more than 60 days or are being contested in compliance with Section 5.05; 
  
 (c) pledges and deposits made in the ordinary course of
business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations; 
  
 (d) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds
and other obligations of a like nature, in each case in the ordinary course of business; 
  
 (e) judgment liens in respect of judgments or attachments that do not constitute an Event of Default under clause (j) of Article VII;
and 
  
 (f) easements, zoning restrictions,
rights-of-way and similar encumbrances on real property imposed by law or arising in the ordinary course of business that do not materially interfere with the ordinary conduct of business of the Borrower or any Subsidiary; 
  
 provided that the term “Permitted Encumbrances” shall not include any Lien
securing Indebtedness. 
  
 “Permitted Holders”
means (i) Carlyle Partners III, L.P., (ii) Carlyle Partners IV, L.P., (iii) CP III Coinvestment, L.P., (iv) Carlyle High Yield Partners, L.P., (v) Carlyle Hawaii Partners L.P., (vi) any other investment fund Controlled
and managed 

  

 25 

 
by (or managed by a Controlled Affiliate of) the same general partner or investment manager as any of the investment funds referred to in clause (i)
through (v) above, (vii) any co-investors with respect to any of the foregoing investment funds investing in Equity Interests of Holdings on or prior to the Effective Date and (viii) the Management Group if at the time of any
determination the Management Group does not own or control more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests in Holdings or 35% of the aggregate voting power represented by the issued and
outstanding Equity Interest in any direct or indirect parent company of Holdings. 
  
 “Permitted Holdings Debt” means Indebtedness of Holdings which (i) does not mature, and is not subject to mandatory repurchase, redemption or amortization (other than pursuant to customary asset
sale or change in control provisions requiring redemption or repurchase only if and to the extent then permitted by this Agreement), in each case, prior to the date that is six months after the Tranche B Maturity Date, (ii) is not secured
by any assets of Holdings, the Borrower or any Subsidiary, (iii) is not Guaranteed by the Borrower or any Subsidiary, (iv) is not exchangeable or convertible into Indebtedness of Holdings (except other Permitted Holdings Debt), the
Borrower or any Subsidiary or any preferred stock or other Equity Interest (other than common equity or Non-Cash Pay Preferred Stock of Holdings, provided that any such exchange or conversion, if effected, would not result in a Change in Control)
and (v) if subordinated, is subordinated to the Obligations pursuant to a written instrument delivered, and reasonably satisfactory, to the Administrative Agent or on terms no less favorable in any significant respect to the Lenders than the
subordination terms applicable to the Senior Subordinated Debt. 
  
 “Permitted Investments” means: 
  
 (a) direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent such obligations are backed by
the full faith and credit of the United States of America), in each case maturing or allowing for liquidation at the original par value at the option of the holder within two years from the date of acquisition thereof; 
  
 (b) investments in commercial paper (other than commercial
paper issued by Holdings, the Borrower, the Permitted Holders or any of their Affiliates) maturing within one year from the date of acquisition thereof and having, at such date of acquisition, the highest credit rating obtainable from S&P or
from Moody’s; 
  
 (c) investments in
certificates of deposit, banker’s acceptances, time deposits or overnight bank deposits maturing within 180 days from the date of acquisition thereof issued or guaranteed by or placed with, and money market deposit accounts issued or
offered by, any domestic office of any commercial bank organized under the laws of the United States of America or any State 

  

 26 

 
thereof which has a combined capital and surplus and undivided profits of not less than $250,000,000; 
  
 (d) fully collateralized repurchase agreements with a term
of not more than 180 days for securities described in clause (a) above and entered into with a financial institution satisfying the criteria described in clause (c) above; 
  
 (e) money market funds that (i) comply with the criteria set forth in Securities and Exchange
Commission Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s and (iii) have portfolio assets of at least $5,000,000,000; 
  
 (f) securities with maturities of two years or less from the date of acquisition issued or fully guaranteed
by any State, commonwealth or territory of the United States of America, or by any political subdivision or taxing authority thereof, and rated at least A by S&P or A by Moody’s; and 
  
 (g) shares of restricted mutual funds whose investment
guidelines restrict 95% of such funds’ investments to those satisfying the provisions of clauses (a) through (f) above. 
  
 “Permitted Subordinated Indebtedness” means Indebtedness of the Borrower which (i) does not mature, and is not subject to mandatory
repurchase, redemption or amortization (other than pursuant to customary asset sale or change in control provisions requiring redemption or repurchase only if and to the extent then permitted by this Agreement), in each case, prior to the date that
is six months after the Tranche B Maturity Date, (ii) is not secured by any assets of Holdings, the Borrower or any Subsidiary, (iii) is not exchangeable or convertible into Indebtedness of Holdings, the Borrower or any Subsidiary or
any preferred stock or other Equity Interest (other than common equity or Non-Cash Pay Preferred Stock of Holdings, provided that any such exchange or conversion, if effected, would not result in a Change in Control) and (iv) is, together with
any Guarantee thereof by any Subsidiary (a “Permitted Subordinated Guarantee”), subordinated to the Obligations pursuant to a written instrument delivered, and reasonably satisfactory, to the Administrative Agent or on terms no less
favorable in any significant respect to the Lenders than the subordination terms applicable to the Senior Subordinated Debt. 
  
 “Person” means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity. 
  
 “Plan” means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA, and in respect of which the
Borrower or any ERISA Affiliate is (or, if such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA. 
  

 27 

 “Prepayment Event” means any (a) Asset Disposition or (b) Debt Issuance.

  
 “Prime Rate” means the rate of interest per
annum publicly announced from time to time by JPMorgan Chase Bank, N.A., as its prime rate in effect at its principal office in New York City; each change in the Prime Rate shall be effective from and including the date such change is publicly
announced as being effective. 
  
 “Pro Forma
Compliance” means, with respect to any event, that the Borrower is in pro forma compliance with the Financial Covenants recomputed as if the event with respect to which Pro Forma Compliance is being tested had occurred on the
first day of each relevant period with respect to which current compliance with such Financial Covenants would be determined (for example, in the case of Financial Covenants based on Adjusted Consolidated EBITDA, as if such event had occurred on the
first day of the four fiscal quarter period ending on the last day of the most recent fiscal quarter in respect of which financial statements have been delivered pursuant to Section 5.01(a) or (b)). 
  
 “Pro Forma Leverage Ratio” means, on any date, the ratio of
(a) Total Indebtedness as of such date (giving effect to any incurrence or repayment of Indebtedness on such date, including as a result of any acquisition to be consummated on such date) to (b) Adjusted Consolidated EBITDA for the period
of four consecutive fiscal quarters of the Borrower most recently ended on or prior to such date (calculated by giving pro forma effect to any acquisitions or dispositions consummated after the commencement of such period or to be
consummated on the calculation date as if such acquisitions or dispositions had been consummated on the first day of such period). 
  
 “Refinancing Indebtedness” means Indebtedness issued or incurred (including by means of the extension or renewal of existing
Indebtedness) to extend, renew, replace or refinance existing Indebtedness (“Refinanced Debt”); provided that (i) such extending, renewing, replacing or refinancing Indebtedness is in an original aggregate principal
amount not greater than the aggregate principal amount of, and unpaid interest on, the Refinanced Debt plus the amount of any premiums paid thereon and fees and expenses associated therewith, (ii) such Indebtedness has a maturity and a weighted
average life equal to or greater than that of the Refinanced Debt, (iii) if the Refinanced Debt or any Guarantees thereof are subordinated to the Obligations, such Indebtedness and Guarantees thereof are subordinated to the Obligations on terms
no less favorable in any significant respect to the holders of the Obligations than the subordination terms of such Refinanced Debt or Guarantees thereof (and no Loan Party that has not guaranteed such Refinanced Debt Guarantees such Indebtedness),
(iv) such Indebtedness contains covenants and events of default and is benefited by Guarantees (if any) which, taken as a whole, are determined in good faith by the board of directors of the Borrower not to be materially less favorable to the
Lenders than the covenants and events of default of or Guarantees (if any) in respect of such Refinanced Debt, (v) if such Refinanced Debt or any Guarantees thereof are secured, such Indebtedness and any Guarantees thereof are either unsecured
or secured only by such assets as secured the Refinanced Debt and Guarantees thereof, (vi) if such Refinanced Debt and any 

  

 28 

 
Guarantees thereof are unsecured, such Indebtedness and Guarantees thereof are also unsecured, (vii) such Indebtedness is issued only by the issuer of
such Refinanced Debt and (viii) the proceeds of such Indebtedness are applied promptly (and in any event within 45 days) after receipt thereof to the repayment of such Refinanced Debt. 
  
 “Register” has the meaning set forth in Section 9.04.

  
 “Related Parties” means, with respect to any
specified Person, such Person’s Affiliates and the directors, officers, employees, agents, trustees, Controlling Persons and advisors of such Person and of each of such Person’s Affiliates. 
  
 “Release” means any actual or threatened release, spill,
emission, leaking, dumping, injection, pouring, deposit, disposal, discharge, dispersal, leaching or migration into or through the environment or within or upon any building, structure, facility or fixture. 
  
 “Required Lenders” means, at any time, Lenders having
Revolving Exposures, Term Loans and unused Commitments representing more than 50% of the sum of the total Revolving Exposures, outstanding Term Loans and unused Commitments at such time. 
  
 “Required Percentage” has the meaning assigned to such term in Section 2.11(c). 
  
 “Restricted Payment” means any dividend or other
distribution (whether in cash, securities or other property) with respect to any Equity Interests in Holdings, the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition, cancelation, termination or amendment of any Equity Interests in Holdings, the Borrower or any Subsidiary or of any option, warrant or other right to acquire any such Equity
Interests in Holdings, the Borrower or any Subsidiary. 
  
 “Revolving Availability Period” means the period from the Effective Date to but excluding the earlier of the Revolving Maturity Date and the date of termination of the Revolving Commitments. 
  
 “Revolving Commitment” means, with respect to each Lender,
the commitment, if any, of such Lender to make Revolving Loans and to acquire participations in Letters of Credit and Swingline Loans hereunder, expressed as an amount representing the maximum aggregate amount of such Lender’s Revolving
Exposure hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The
initial amount of each Lender’s Revolving Commitment is set forth on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Revolving Commitment, as applicable. The initial aggregate amount
of the Lenders’ Revolving Commitments is $200,000,000. 
  

 29 

 “Revolving Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure and Swingline Exposure at such time. 
  
 “Revolving Lender” means a Lender with a Revolving Commitment or, if the Revolving Commitments have terminated or expired, a Lender with
Revolving Exposure. 
  
 “Revolving Loan” means a
Loan made pursuant to clause (c) of Section 2.01. 
  
 “Revolving Maturity Date” means April 30, 2012, or, if such day is not a Business Day, the next preceding Business Day. 
  
 “7% Debentures” means the 7% Debentures, Series A, Due 2006, of the Telephone Subsidiary. 
  
 “7.375% Debentures” means the 7.375% Debentures,
Series B, Due 2006, of the Telephone Subsidiary. 
  
 “S&P” means Standard & Poor’s Ratings Group, Inc. 
  
 “Secured Parties” has the meaning assigned to such term in the Collateral Agreement or the Shared Collateral Agreement, as applicable. 
  
 “Securitization” means any transaction or series of transactions entered into by the Borrower or any
Subsidiary pursuant to which the Borrower or such Subsidiary, as the case may be, sells, conveys or otherwise transfers to a Securitization Vehicle Securitization Assets of the Borrower or such Subsidiary (or grants a security interest in such
Securitization Assets transferred or purported to be transferred to such Securitization Vehicle), and which Securitization Vehicle finances the acquisition of such Securitization Assets (i) with proceeds from the issuance of Third Party
Interests, (ii) with Sellers’ Retained Interests or (iii) with proceeds from the sale or collection of Securitization Assets previously purchased by such Securitization Vehicle. 
  
 “Securitization Assets” means any accounts receivable owed
to or owned by the Borrower or any Subsidiary (whether now existing or arising or acquired in the future) arising in the ordinary course of business from the sale of goods or services, all collateral securing such accounts receivable, all contracts
and contract rights and all guarantees or other obligations in respect of such accounts receivable, all proceeds of such accounts receivable and other assets (including contract rights) which are of the type customarily transferred in connection
with securitizations of accounts receivable and which are sold, transferred or otherwise conveyed by the Borrower or a Subsidiary to a Securitization Vehicle in connection with a Securitization permitted by Section 6.05. 
  
 “Securitization Vehicle” means a Person that is a direct
wholly owned Subsidiary of the Borrower or a Subsidiary formed for the purpose of effecting one or more Securitizations to which the Borrower or its Subsidiaries transfer Securitization 

  

 30 

 
Assets and which, in connection therewith, issues Third Party Interests or Sellers’ Retained Interests; provided that such Securitization Vehicle
shall engage in no business other than the purchase of Securitization Assets pursuant to Securitizations permitted by Section 6.05, the issuance of Third Party Interests or other funding of such Securitizations and any activities reasonably
related thereto, and provided further that 
  
 (x) no portion of
the Indebtedness or any other obligations (contingent or otherwise) of such Securitization Vehicle (i) is guaranteed by the Borrower or any Subsidiary (excluding guarantees of obligations (other than the principal of and interest on
Indebtedness) pursuant to standard Securitization Undertakings), (ii) is recourse to or obligates the Borrower or any other Subsidiary of the Borrower in any way other than pursuant to Standard Securitization Undertakings, or
(iii) subjects any property or asset of the Borrower or any other Subsidiary of the Borrower, directly or indirectly, contingently or otherwise, to the satisfaction thereof, other than pursuant to Standard Securitization Undertakings;

  
 (y) neither the Borrower nor any Subsidiary has any material
contract, agreement, arrangement or understanding with such Securitization Vehicle other than on terms which the Borrower reasonably believes to be no less favorable to the Borrower or such Subsidiary than those that might be obtained at the time
from Persons that are not Affiliates of the Borrower; and 
  
 (z)
neither the Borrower nor any Subsidiary has any obligation to maintain or preserve such Securitization Vehicle’s financial condition or cause such Securitization Vehicle to achieve certain levels of operating results. 
  
 “Security Documents” means the Collateral Agreement, the
Shared Collateral Agreement, the Mortgages and each other security agreement or other instrument or document executed and delivered pursuant to Section 5.11 or 5.12 or pursuant to the Collateral Agreement to secure any of the Obligations.

  
 “Sellers’ Retained Interests” means the
debt or equity interests held by the Borrower or any Subsidiary in a Securitization Vehicle to which Securitization Assets have been transferred in a Securitization permitted by Section 6.05, including any such debt or equity received in
consideration for the Securitization Assets transferred. 
  
 “Senior Indebtedness” means at any time, Total Indebtedness at such time, except (to the extent counted as Total Indebtedness) the Senior Subordinated Debt, Permitted Subordinated Indebtedness, Permitted Holdings Debt and
any other Indebtedness of Holdings not Guaranteed by the Borrower or any Subsidiary and any Refinancing Indebtedness in respect thereof. 
  

 31 

 “Senior Secured Indebtedness” means at any time, the principal amount of all the
Obligations and all other Senior Indebtedness, other than unsecured Senior Indebtedness, in each case included in Total Indebtedness at such time. 
  
 “Senior Secured Leverage Ratio” means, on any date, the ratio of (a) Senior Secured Indebtedness as of such date to
(b) Adjusted Consolidated EBITDA for the period of four consecutive fiscal quarters of the Borrower most recently ended on or prior to such date. 
  
 “Senior Subordinated Debt” means the Indebtedness represented by the Senior Subordinated Notes (including the Note Guarantees, Exchange
Notes (each as defined in the Senior Subordinated Debt Documents), Guarantees of Exchange Notes and any replacement Exchange Notes). 
  
 “Senior Subordinated Debt Documents” means the indenture under which the Senior Subordinated Debt was issued, the Senior Subordinated
Notes, and the Guarantees of the Senior Subordinated Notes. 
  
 “Senior Subordinated Notes” means the Borrower’s Senior Subordinated Notes due 2015 to be issued on or prior to the Effective Date in the aggregate principal amount of $150,000,000. 
  
 “Senior Unsecured Debt” means the Indebtedness represented
by the Senior Unsecured Notes (including the Note Guarantees, Exchange Notes (each as defined in the Senior Unsecured Debt Documents), Guarantees of Exchange Notes and any replacement Exchange Notes). 
  
 “Senior Unsecured Debt Documents” means the indenture under
which the Senior Unsecured Debt was issued, the Senior Unsecured Notes and the Guarantees of the Senior Unsecured Notes. 
  
 “Senior Unsecured Notes” means the Borrower’s Senior Floating Rate Notes due 2013 and Senior Fixed Rate Notes due 2013 to be issued
on or prior to the Effective Date in the aggregate principal amount of $350,000,000. 
  
 “Shared Collateral Agreement” means the Shared Collateral Agreement among the Telephone Subsidiary and the Agent, substantially in the form of Exhibit C-2. 
  
 “Special Purpose Subsidiary Funding Agreement” means an
agreement among the Borrower and each License Subsidiary, in form and substance satisfactory to the Administrative Agent, pursuant to which (a) such License Subsidiary agrees to provide to the Borrower and the other Subsidiaries the benefit of
the use of such License Subsidiary’s assets, (b) the Borrower agrees to pay to such License Subsidiary an amount equal to all liabilities of such License Subsidiary on or before they become due and payable pursuant to contributions at such
time to the common equity of such License Subsidiary to fund such liabilities, (c) the Borrower agrees to cause all contractual obligations of such License Subsidiary to be performed and all laws and regulations applicable to such License
Subsidiary to be complied with, (d) the Borrower agrees that 

  

 32 

 
all payments made pursuant to such agreement for or on behalf of the License Subsidiary will not give rise to or provide the basis for any payment or other
monetary obligation or liability of the License Subsidiary to or in favor of the Borrower or any Subsidiary, and (e) the Borrower and such License Subsidiary agree to the assignment by each of its rights thereunder to the Collateral Agent
pursuant to the Collateral Agreement. 
  
 “Sponsor” means, collectively, Carlyle Partners III, L.P. and Carlyle Partners IV, L.P. 
  
 “Sponsor Note” means the $30,000,000 Note, dated May 2, 2005, of the Borrower in favor of Carlyle Partners III, L.P. in respect of
expenses paid on behalf of the Borrower prior to the Effective Date. 
  
 “Standard Securitization Undertakings” means representations, warranties, covenants, indemnities and guarantees of performance entered into by the Borrower or any Subsidiary which the Borrower has determined in good faith
to be customary in a Securitization, including, without limitation, those relating to the servicing of the assets of a Securitization Vehicle. 
  
 “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Board to which the Administrative Agent is subject with respect
to eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. Eurodollar Loans shall be deemed to
constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such Regulation D or any comparable
regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 
  
 “subsidiary” means, with respect to any Person (the “parent”) at any date, any corporation, limited liability company,
partnership, association or other entity the accounts of which would be consolidated with those of the parent in the parent’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date,
as well as any other corporation, limited liability company, partnership, association or other entity of which securities or other ownership interests representing more than 50% of the equity or more than 50% of the ordinary voting power or, in the
case of a partnership, more than 50% of the general partnership interests are, as of such date, owned, Controlled or held by the parent or one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the parent.

  
 “Subsidiary” means (a) any subsidiary of
the Borrower on the Effective Date and (b) each subsidiary of the Borrower organized or acquired after the Effective Date. For purposes of the representations and warranties made herein on (and the conditions to borrowing on) the Effective
Date, the Acquisition shall be assumed to have 

  

 33 

 
already been consummated. Notwithstanding the foregoing (except for the definition of Unrestricted Subsidiary contained herein), an Unrestricted Subsidiary
shall be deemed not to be a Subsidiary of the Borrower or any of its Subsidiaries for purposes of this Agreement. 
  
 “Subsidiary Loan Party” means any Subsidiary other than (a) Hawaiian Telcom Insurance Company Incorporated, (b) any
Securitization Vehicle and (c) any Foreign Subsidiary. 
  
 “Subsidiary Redesignation” shall have the meaning set forth in Section 5.13. 
  
 “Swap Agreement” means any agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement
involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar
transaction or any combination of these transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by current or former directors, officers, employees or consultants of the
Borrower or the Subsidiaries shall be a Swap Agreement. 
  
 “Swingline Exposure” means, at any time, the aggregate principal amount of all Swingline Loans outstanding at such time. The Swingline Exposure of any Lender at any time shall be its Applicable Percentage of the total
Swingline Exposure at such time. 
  
 “Swingline
Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of Swingline Loans hereunder. 
  
 “Swingline Loan” means a Loan made pursuant to Section 2.04. 
  
 “Taxes” means any and all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority. 
  
 “Telephone Subsidiary” means Verizon Hawaii Inc., a Hawaii corporation (formerly known as GTE Hawaiian Telephone Company Incorporated), which will be a wholly owned Subsidiary on the Effective Date after giving effect to
the consummation of the Acquisition. Verizon Hawaii Inc. will be renamed “Hawaiian Telcom, Inc.” in connection with the Acquisition. 
  
 “Term Loans” means Tranche A Term Loans and Tranche B Term Loans. 
  
 “Third Party Interests” means, with respect to any Securitization, notes, bonds or other debt instruments,
beneficial interests in a trust, undivided ownership interests in receivables or other securities issued for cash consideration by the relevant Securitization Vehicle to banks, financing conduits, investors or other financing sources (other than
Holdings and its subsidiaries) the proceeds of which are used to finance, in whole or in part, the purchase by such Securitization Vehicle of Securitization Assets in a 

  

 34 

 
Securitization. The amount of any Third Party Interests shall be deemed to equal the aggregate principal, stated or invested amount of such Third Party
Interests which are outstanding at such time. 
  
 “Total
Indebtedness” means, as of any date, (a) the aggregate principal amount of Indebtedness of the Borrower and the Subsidiaries outstanding as of such date, in the amount that would be reflected on a balance sheet prepared as of such date
on a consolidated basis in accordance with GAAP minus (b) the aggregate amount of unrestricted cash in excess of $30,000,000 that would be reflected on a balance sheet prepared as of such date on a consolidated basis in accordance with GAAP.

  
 “Tranche A Availability Period” means
the period from the Effective Date to and including the Tranche A Termination Date. 
  
 “Tranche A Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make Tranche A Term Loans hereunder, expressed as an amount representing the maximum principal
amount of the Tranche A Term Loan to be made by such Lender hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.08 and (b) reduced or increased from time to time pursuant to assignments by or to
such Lender pursuant to Section 9.04. The initial amount of each Lender’s Tranche A Commitment is set forth on Schedule 2.01, or in the Assignment and Assumption pursuant to which such Lender shall have assumed its Tranche A
Commitment, as applicable. The initial aggregate amount of the Lenders’ Tranche A Commitments is $300,000,000. 
  
 “Tranche A Lender” means a Lender with a Tranche A Commitment or an outstanding Tranche A Term Loan. 
  
 “Tranche A Maturity Date” means April 30, 2012, or, if
such day is not a Business Day, the next preceding Business Day. 
  
 “Tranche A Termination Date” means September 1, 2006. 
  
 “Tranche A Term Loan” means a Loan made pursuant to clause (a) of Section 2.01. 
  
 “Tranche B Commitment” means, with respect to each Lender, the commitment, if any, of such Lender to make a Tranche B Term Loan hereunder
on the Effective Date, expressed as an amount representing the maximum principal amount of the Tranche B Term Loan to be made by such Lender hereunder, as such commitment may be (a) reduced from time to time pursuant to Section 2.08 and
(b) reduced or increased from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The initial amount of each Lender’s Tranche B Commitment is set forth on Schedule 2.01, or in the Assignment and
Assumption pursuant to which such Lender shall have assumed its Tranche A Commitment, as applicable. The initial aggregate amount of the Lenders’ Tranche B Commitments is $450,000,000. 
  

 35 

 “Tranche B Lender” means a Lender with a Tranche B Commitment or an outstanding Tranche
B Term Loan. 
  
 “Tranche B Maturity Date” means
October 31, 2012, or, if such day is not a Business Day, the next preceding Business Day. 
  
 “Tranche B Term Loan” means a Loan made pursuant to clause (b) of Section 2.01. 
  
 “Transactions” means the Acquisition and the Financing Transactions. 
  
 “Transition Period Trademark License Agreement” means the Transition Period Trademark License Agreement
entered into by GTE Corporation and the Borrower. 
  
 “Transition Services Agreement” means the Transition Services Agreement entered into by the Borrower, Holdings, Verizon Information Technologies Inc., and the Telephone Subsidiary pursuant to the Acquisition Agreement, the
form of which appears as Exhibit C to the Acquisition Agreement. 
  
 “Transition Services Agreement - Software License” means the Transition Services Agreement - Software License entered into by GTE Corporation and the Borrower. 
  
 “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of interest on such
Loan, or on the Loans comprising such Borrowing, is determined by reference to the Adjusted LIBO Rate or the Alternate Base Rate. 
  
 “Unrestricted Subsidiary” shall mean any Subsidiary of the Borrower designated as an Unrestricted Subsidiary pursuant to
Section 5.13. 
  
 “Verizon” means Verizon
Communications Inc., a Delaware corporation, and, as the context may require, its subsidiaries. 
  
 “Verizon Agreements” means the Transition Services Agreement, the Intellectual Property Agreement, the Verizon Proprietary Software
License Agreement, the Transition Services Agreement - Software License, the Transition Period Trademark License Agreement and the Contribution Agreement. 
  
 “Verizon Proprietary Software License Agreement” means the Verizon Proprietary Software Agreement entered into between GTE Corporation,
the Borrower and certain Subsidiaries pursuant to the Acquisition Agreement, the form of which appears as Exhibit E to the Acquisition Agreement. 
  
 “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA. 
  

 36 

 SECTION 1.02. Classification of Loans and Borrowings. For purposes of this Agreement, Loans may be
classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and Type (e.g., a “Eurodollar Revolving Loan”). Borrowings also may be classified
and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”). 
  
 SECTION 1.03. Terms Generally. The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”, “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”. The word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the context requires otherwise
(a) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject
to any restrictions on such amendments, supplements or modifications set forth herein), (b) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this Agreement in its entirety and not to any particular provision hereof, (d) all references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement and (e) the words “asset” and “property” shall be construed to have the same meaning and effect and to refer to
any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 
  
 SECTION 1.04. Accounting Terms; GAAP. Except as otherwise expressly provided herein, all terms of an accounting or financial nature shall be
construed in accordance with GAAP, as in effect from time to time; provided that, if the Borrower notifies the Administrative Agent that the Borrower requests an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the operation of such provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request an amendment to any provision hereof for such purpose),
regardless of whether any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted on the basis of GAAP as in effect and applied immediately before such change shall have become
effective until such notice shall have been withdrawn or such provision amended in accordance herewith. 
  
 ARTICLE II 
  
 The Credits 
  
 SECTION 2.01. Commitments.
Subject to the terms and conditions set forth herein, each Lender agrees (a) to make Tranche A Term Loans to the Borrower from time to time during the Tranche A Availability Period in an aggregate cumulative 

  

 37 

 
principal amount not exceeding its Tranche A Commitment, (b) to make a Tranche B Term Loan to the Borrower on the Effective Date in a principal
amount equal to its Tranche B Commitment and (c) to make Revolving Loans to the Borrower from time to time during the Revolving Availability Period in an aggregate principal amount that will not (after giving effect to any concurrent use of the
proceeds thereof to repay Swingline Loans or LC Disbursements) result in such Lender’s Revolving Exposure exceeding such Lender’s Revolving Commitment; provided, however, that Revolving Loans will only be available on the
Effective Date in an aggregate amount of up to $40,000,000, provided, further, that the proceeds of such Revolving Loans available on the Effective Date may only be used for the purpose of (i) funding payment of a purchase price
adjustment payable by the Borrower under the Acquisition Agreement and (ii) paying fees and expenses incurred by the Borrower in connection with the Transactions. Within the foregoing limits and subject to the terms and conditions set forth
herein, the Borrower may borrow, prepay and reborrow Revolving Loans. Amounts repaid or prepaid in respect of Term Loans may not be reborrowed. 
  
 SECTION 2.02. Loans and Borrowings. (a) Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting of Loans of
the same Class and Type made by the Lenders ratably in accordance with their Commitments of the applicable Class. The failure of any Lender to make any Loan required to be made by it shall not relieve any other Lender of its obligations hereunder;
provided that the Commitments of the Lenders are several and no Lender shall be responsible for any other Lender’s failure to make Loans as required. 
  
 (b) Subject to Section 2.14, each Revolving Borrowing and Term Borrowing shall be comprised entirely of ABR Loans or
Eurodollar Loans as the Borrower may request in accordance herewith. Each Swingline Loan shall be an ABR Loan. 
  
 (c) At the commencement of each Interest Period for any Eurodollar Borrowing, such Borrowing shall be in an aggregate amount that is an integral multiple
of $1,000,000 and not less than $2,000,000. At the time that each ABR Revolving Borrowing is made, such Borrowing shall be in an aggregate amount that is an integral multiple of $1,000,000 and not less than $2,000,000; provided that an ABR
Revolving Borrowing may be in an aggregate amount that is equal to the entire unused balance of the total Revolving Commitments or that is required to finance the reimbursement of an LC Disbursement as contemplated by Section 2.05(e). Each
Swingline Loan shall be in an amount that is an integral multiple of $1,000,000. Borrowings of more than one Type and Class may be outstanding at the same time; provided that there shall not at any time be more than a total of 15 Eurodollar
Borrowings outstanding. 
  
 (d) Notwithstanding any other
provision of this Agreement, the Borrower shall not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest Period requested with respect thereto would end after the Revolving Maturity Date, Tranche A Maturity Date
or Tranche B Maturity Date, as applicable. 
  

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 SECTION 2.03. Requests for Borrowings. To request funding of a Revolving Borrowing or Term
Borrowing, the Borrower shall notify the Administrative Agent of such request by telephone (a) in the case of a Eurodollar Borrowing, not later than 2:00 p.m., New York City time, three Business Days before the date of the proposed
Borrowing or (b) in the case of an ABR Borrowing, not later than 2:00 p.m., New York City time, one Business Day before the date of the proposed Borrowing; provided that any such notice of an ABR Revolving Borrowing to finance the
reimbursement of an LC Disbursement as contemplated by Section 2.05(e) may be given not later than 10:00 a.m., New York City time, on the date of the proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable and shall be
confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Borrowing Request in a form approved by the Administrative Agent and signed by the Borrower. Each such telephonic and written Borrowing Request shall specify
the following information in compliance with Section 2.02: 
  
 (i) whether the requested Borrowing is to be a Revolving Borrowing, Tranche A Term Borrowing or Tranche B Term Borrowing; 
  
 (ii) the aggregate amount of such Borrowing; 
  
 (iii) the date of such Borrowing, which shall be a Business Day; 
  
 (iv) subject to the proviso to the fourth sentence of Section 2.02(c), whether such Borrowing is to be
an ABR Borrowing or a Eurodollar Borrowing; 
  
 (v) in the case of a Eurodollar Borrowing, the initial Interest Period to be applicable thereto, which shall be a period contemplated by the definition of the term “Interest Period”; and 
  
 (vi) the location and number of the Borrower’s account
to which funds are to be disbursed, which shall comply with the requirements of Section 2.06. 
  
 If no election as to the Type of Borrowing is specified, then the requested Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any requested Eurodollar Borrowing, then the Borrower
shall be deemed to have selected an Interest Period of one month’s duration. Promptly following receipt of a Borrowing Request in accordance with this Section, the Administrative Agent shall advise each Lender of the details thereof and of the
amount of such Lender’s Loan to be made as part of the requested Borrowing. 
  
 SECTION 2.04. Swingline Loans. (a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make Swingline Loans to the Borrower from time to time during the Revolving
Availability Period, in an aggregate principal amount at any time outstanding that will not result in (i) the aggregate principal amount of outstanding Swingline Loans exceeding $35,000,000 or (ii) the sum of the total Revolving Exposures
exceeding the total Revolving Commitments; provided that the Swingline Lender shall not be required to make a Swingline Loan to refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and 

  

 39 

 
conditions set forth herein, the Borrower may borrow, prepay and reborrow Swingline Loans. 
  
 (b) To request a Swingline Loan, the Borrower shall notify the Administrative Agent of such request by telephone (confirmed
by telecopy), not later than 2:00 p.m., New York City time, on the day of a proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the requested date (which shall be a Business Day) and amount of the requested Swingline
Loan. The Administrative Agent will promptly advise the Swingline Lender of any such notice received from the Borrower. The Swingline Lender shall make each Swingline Loan available to the Borrower by means of a credit to the general deposit account
of the Borrower with the Swingline Lender (or, in the case of a Swingline Loan made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e), by remittance to the Issuing Bank) by 3:00 p.m., New York City time, on
the requested date of such Swingline Loan. 
  
 (c) The Swingline
Lender may by written notice given to the Administrative Agent not later than 12:00 noon, New York City time, on any Business Day require the Revolving Lenders to acquire participations on such Business Day in all or a portion of the Swingline
Loans outstanding. Such notice shall specify the aggregate amount of Swingline Loans in which Revolving Lenders will participate. Promptly upon receipt of such notice, the Administrative Agent will give notice thereof to each Revolving Lender,
specifying in such notice such Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Revolving Lender hereby absolutely and unconditionally agrees, upon receipt of notice as provided above, to pay to the Administrative Agent, for
the account of the Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan or Loans. Each Revolving Lender acknowledges and agrees that its obligation to acquire participations in Swingline Loans pursuant to this paragraph
is absolute and unconditional and shall not be affected by any circumstance whatsoever, including the occurrence and continuance of a Default or reduction or termination of the Commitments, and that each such payment shall be made without any
offset, abatement, withholding or reduction whatsoever; provided that no Lender shall be required to acquire a participation in any Swingline Loan to the extent that doing so would cause the Revolving Exposure of such Lender to exceed such
Lender’s Revolving Commitment. Each Revolving Lender shall comply with its obligation under this paragraph by wire transfer of immediately available funds, in the same manner as provided in Section 2.06 with respect to Loans made by such
Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the Revolving Lenders), and the Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from the Revolving
Lenders. The Administrative Agent shall notify the Borrower of any participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments in respect of such Swingline Loan shall be made to the Administrative Agent and not
to the Swingline Lender. Any amounts received by the Swingline Lender from the Borrower (or other party on behalf of the Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a sale of participations
therein shall be promptly remitted to the Administrative Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the 

  

 40 

 
Administrative Agent to the Revolving Lenders that shall have made their payments pursuant to this paragraph and to the Swingline Lender, as their interests
may appear; provided that any such payment so remitted shall be repaid to the Swingline Lender or to the Administrative Agent, as applicable, if and to the extent such payment is required to be refunded to the Borrower for any reason. The purchase
of participations in a Swingline Loan pursuant to this paragraph shall not relieve the Borrower of any default in the payment thereof. 
  
 SECTION 2.05. Letters of Credit. (a) General. Subject to the terms and conditions set forth herein, the Borrower may request the
issuance of Letters of Credit for its own account or the account of any Subsidiary, in a form reasonably acceptable to the Administrative Agent and the applicable Issuing Bank, on the Effective Date and at any time and from time to time during the
Revolving Availability Period. In the event of any inconsistency between the terms and conditions of this Agreement and the terms and conditions of any form of letter of credit application or other agreement submitted by the Borrower to, or entered
into by the Borrower with, an Issuing Bank relating to any Letter of Credit, the terms and conditions of this Agreement shall control. 
  
 (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request the issuance of a Letter of Credit (or the amendment, renewal
or extension of an outstanding Letter of Credit), the Borrower shall hand deliver or telecopy (or transmit by electronic communication, if arrangements for doing so have been approved by the applicable Issuing Bank) to the applicable Issuing Bank
and the Administrative Agent (reasonably in advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or extended,
and specifying the date of issuance, amendment, renewal or extension (which shall be a Business Day), the date on which such Letter of Credit is to expire (which shall comply with paragraph (c) of this Section), the amount of such Letter of
Credit, the name and address of the beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or extend such Letter of Credit. If requested by the applicable Issuing Bank, the Borrower also shall submit a letter
of credit application on the Issuing Bank’s standard form in connection with any request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended only if (and upon issuance, amendment, renewal or extension of
each Letter of Credit the Borrower shall be deemed to represent and warrant that), after giving effect to such issuance, amendment, renewal or extension (i) the LC Exposure shall not exceed $15,000,000 and (ii) the total Revolving Exposures
shall not exceed the total Revolving Commitments. 
  
 (c)
Expiration Date. Each Letter of Credit shall expire at or prior to the close of business on the earlier of (i) the date one year after the date of the issuance of such Letter of Credit (or, in the case of any renewal or extension thereof
(including any automatic renewal pursuant to an evergreen feature), one year after the most recent such renewal or extension) and (ii) the date that is five Business Days prior to the Revolving Maturity Date. 
  

 41 

 (d) Participations. By the issuance of a Letter of Credit (or an amendment to a Letter of Credit
increasing the amount thereof) and without any further action on the part of an Issuing Bank or the Lenders, each Issuing Bank hereby grants to each Revolving Lender, and each Revolving Lender hereby acquires from such Issuing Bank, a participation
in such Letter of Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn under such Letter of Credit. In consideration and in furtherance of the foregoing, each Revolving Lender hereby absolutely and
unconditionally agrees to pay to the Administrative Agent, for the account of the applicable Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by such Issuing Bank and not reimbursed by the Borrower on the date due
as provided in paragraph (e) of this Section, or of any reimbursement payment required to be refunded to the Borrower for any reason. Each Revolving Lender acknowledges and agrees that its obligation to acquire participations pursuant to this
paragraph in respect of Letters of Credit is absolute and unconditional and shall not be affected by any circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or
reduction or termination of the Commitments, and that each such payment shall be made without any offset, abatement, withholding or reduction whatsoever; provided that no Lender shall be required to acquire a participation in any Letter of
Credit to the extent that doing so would cause the Revolving Exposure of such Lender to exceed such Lender’s Revolving Commitment. 
  
 (e) Reimbursement. If an Issuing Bank shall make any LC Disbursement in respect of a Letter of Credit, the Borrower shall reimburse such LC
Disbursement by paying to the Administrative Agent an amount equal to such LC Disbursement not later than 2:00 p.m., New York City time, on the date that such LC Disbursement is made, if the Borrower shall have received notice of such LC
Disbursement prior to 10:00 a.m., New York City time, on such date, or, if such notice has not been received by the Borrower prior to such time on such date, then not later than 2:00 p.m., New York City time, on (i) the Business Day that the
Borrower receives such notice, if such notice is received prior to 10:00 a.m., New York City time, on the day of receipt, or (ii) the Business Day immediately following the day that the Borrower receives such notice, if such notice is not
received prior to such time on the day of receipt; provided that (whether or not the conditions in Section 4.02 are satisfied or a Default exists) each of the Administrative Agent and the Borrower shall have the absolute and
unconditional right to require that such payment be financed with an ABR Revolving Borrowing or Swingline Loan in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged and
replaced by the resulting ABR Revolving Borrowing or Swingline Loan. If the Borrower fails to make such payment when due, the Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the payment then due from the
Borrower in respect thereof and such Lender’s Applicable Percentage thereof. Promptly following receipt of such notice, each Revolving Lender shall pay to the Administrative Agent its Applicable Percentage of the payment then due from the
Borrower, in the same manner as provided in Section 2.06 with respect to Loans made by such Lender (and Section 2.06 shall apply, mutatis mutandis, to the payment obligations of the Revolving Lenders), and the Administrative
Agent shall promptly pay to the applicable Issuing Bank the amounts so received by it 

  

 42 

 
from the Revolving Lenders. Promptly following receipt by the Administrative Agent of any payment from the Borrower pursuant to this paragraph, the
Administrative Agent shall distribute such payment to the applicable Issuing Bank or, to the extent that Revolving Lenders have made payments pursuant to this paragraph to reimburse such Issuing Bank, then to such Lenders and the Issuing Bank as
their interests may appear. Any payment made by a Revolving Lender pursuant to this paragraph to reimburse an Issuing Bank for any LC Disbursement (other than the funding of ABR Revolving Loans or a Swingline Loan as contemplated above) shall not
constitute a Loan and shall not relieve the Borrower of its obligation to reimburse such LC Disbursement. 
  
 (f) Obligations Absolute. The Borrower’s obligation to reimburse LC Disbursements as provided in paragraph (e) of this Section shall be
absolute, unconditional and irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability of any Letter of
Credit or this Agreement, or any term or provision therein, (ii) any draft or other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein being untrue or inaccurate in
any respect, (iii) payment by the Issuing Bank under a Letter of Credit against presentation of a draft or other document that does not comply strictly with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of this Section, constitute a legal or equitable discharge of, or provide a right of setoff against, the Borrower’s obligations hereunder. None of
the Administrative Agent, the Lenders, the Issuing Banks or any of their Related Parties shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or failure to make
any payment thereunder (irrespective of any of the circumstances referred to in the preceding sentence), or any error, omission, interruption, loss or delay in transmission or delivery of any draft, notice or other communication under or relating to
any Letter of Credit (including any document required to make a drawing thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the Issuing Bank; provided that the provisions of
this Section 2.05(f) shall not be construed to excuse an Issuing Bank from liability to the Borrower to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Borrower to
the extent permitted by applicable law) suffered by the Borrower that are caused by such Issuing Bank’s failure to exercise care when determining whether drafts and other documents presented under a Letter of Credit comply with the terms
thereof. The parties hereto expressly agree that, in the absence of gross negligence or wilful misconduct on the part of an Issuing Bank (as finally determined by a court of competent jurisdiction), such Issuing Bank shall be deemed to have
exercised care in each such determination. In furtherance of the foregoing and without limiting the generality thereof, the parties agree that, with respect to documents presented which appear on their face to be in substantial compliance with the
terms of a Letter of Credit, an Issuing Bank may, in its sole discretion, either accept and make payment upon such documents without responsibility for further investigation, regardless of any notice or information to the contrary, or refuse to
accept and make payment upon such documents if such documents are not in strict compliance with the terms of such Letter of Credit. 
  

 43 

 (g) Disbursement Procedures. An Issuing Bank shall, promptly following its receipt thereof,
examine all documents purporting to represent a demand for payment under a Letter of Credit issued by it. The Issuing Bank shall promptly notify the Administrative Agent and the Borrower by telephone (confirmed by telecopy) of such demand for
payment and whether the Issuing Bank has made or will make an LC Disbursement thereunder; provided that any failure to give or delay in giving such notice shall not relieve the Borrower of its obligation to reimburse the Issuing Bank and the
Revolving Lenders with respect to any such LC Disbursement. 
  
 (h) Interim Interest. If an Issuing Bank shall make any LC Disbursement, then, unless the Borrower shall reimburse such LC Disbursement in full on the date such LC Disbursement is made, the unpaid amount thereof shall bear interest,
for each day from and including the date such LC Disbursement is made to but excluding the date that the Borrower reimburses such LC Disbursement, at the rate per annum then applicable to ABR Revolving Loans; provided that, if the Borrower
fails to reimburse such LC Disbursement when due pursuant to paragraph (e) of this Section, then Section 2.13(c) shall apply. Interest accrued pursuant to this paragraph shall be for the account of the applicable Issuing Bank, except that
interest accrued on and after the date of payment by any Revolving Lender pursuant to paragraph (e) of this Section to reimburse an Issuing Bank shall be for the account of such Lender to the extent of such payment. 
  
 (i) Replacement of the Issuing Bank. An Issuing Bank may be replaced
at any time by written agreement among the Borrower, the Administrative Agent, the replaced Issuing Bank and the successor Issuing Bank. The Administrative Agent shall notify the Lenders of any such replacement of an Issuing Bank. At the time any
such replacement shall become effective, the Borrower shall pay all unpaid fees accrued for the account of the replaced Issuing Bank pursuant to Section 2.12(b). From and after the effective date of any such replacement, (i) the successor
Issuing Bank shall have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit to be issued by it thereafter and (ii) references herein to the term “Issuing Bank” shall be deemed to
refer to such successor or to any predecessor Issuing Bank, or to such successor and all predecessor Issuing Banks, as the context shall require. After the replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party
hereto and shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with respect to Letters of Credit issued by it prior to such replacement, but shall not be required to issue additional Letters of Credit.

  
 (j) Cash Collateralization. If any Event of Default
under clauses (a), (b), (h) or (i) of Article VII shall occur and be continuing or if the Loans have been accelerated pursuant to Article VII as a result of any other Event of Default, on or before the third Business Day (subject
to the proviso below) after the Borrower receives notice from the Administrative Agent or the Required Lenders (or, if the maturity of the Loans has been accelerated, Revolving Lenders with LC Exposure representing greater than 50% of the total LC
Exposure) demanding the deposit of cash collateral pursuant to this paragraph, the Borrower shall deposit in an account with the Administrative Agent, in the name of the Administrative Agent and for the benefit of the Lenders, an amount in cash
equal to the LC Exposure as of such date plus any accrued and unpaid interest thereon; 

  

 44 

 
provided that the obligation to deposit such cash collateral shall become effective immediately, and such deposit shall become immediately due and
payable, without demand or other notice of any kind, upon the occurrence of any Event of Default with respect to the Borrower described in clause (h) or (i) of Article VII. The Borrower also shall deposit cash collateral pursuant to
this paragraph as and to the extent required by Section 2.11(b). Each such deposit under this Section or Section 2.11(b) shall be held by the Administrative Agent as collateral for the payment and performance of the obligations of the
Borrower under this Agreement, and the Borrower hereby grants to the Agent, for the benefit of the Secured Parties, a security interest in all funds and investments from time to time in such account, and in the proceeds thereof, to secure the
Obligations. The Administrative Agent shall have exclusive dominion and control, including the exclusive right of withdrawal, over such account. Other than any interest earned on the investment of such deposits, which investments shall be made at
the option and sole discretion of (i) for so long as an Event of Default shall be continuing, the Administrative Agent and (ii) at any other time, the Borrower, in each case, in Permitted Investments and at the Borrower’s risk and
expense, such deposits shall not bear interest. Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such account shall be applied by the Administrative Agent to reimburse the Issuing Bank for LC Disbursements
for which it has not been reimbursed and, to the extent not so applied, shall be held for the satisfaction of the reimbursement obligations of the Borrower for the LC Exposure at such time or, if the maturity of the Loans has been accelerated (but
subject to the consent of Revolving Lenders with LC Exposure representing greater than 50% of the total LC Exposure), be applied to satisfy other obligations of the Borrower under this Agreement. If the Borrower is required to provide an amount of
cash collateral under this Section 2.05(j) as a result of the occurrence of an Event of Default specified above, such amount (to the extent not applied as aforesaid) shall be returned to the Borrower within three Business Days after the
applicable Events of Default have been cured or waived. If the Borrower is required to provide an amount of cash collateral hereunder pursuant to Section 2.11(b), such amount (to the extent not applied as aforesaid) shall be returned to the
Borrower as and to the extent that, after giving effect to such return, the Borrower would remain in compliance with Section 2.11(b) and no Default shall have occurred and be continuing. 
  
 (k) Additional Issuing Banks. From time to time, the Borrower may by
notice to the Administrative Agent designate up to three Lenders (in addition to JPMorgan Chase Bank, N.A.) to act as Issuing Banks; provided (i) each agrees (in its sole discretion) to act in such capacity pursuant to a written instrument
satisfactory to the Borrower and the Administrative Agent, (ii) each is reasonably satisfactory to the Administrative Agent as an Issuing Bank and (iii) at the time of designation and for all periods such Lender acts as an Issuing Bank
such Lender has a Revolving Commitment hereunder. 
  
 (l)
Reporting. Unless otherwise requested by the Administrative Agent, each Issuing Bank shall (i) provide to the Administrative Agent copies of any notice received from the Borrower pursuant to Section 2.05(b) no later than the next
Business Day after receipt thereof and (ii) report in writing to the Administrative Agent (A) on or prior to each Business Day on which such Issuing Bank expects to issue, amend, renew 

  

 45 

 
or extend any Letter of Credit, the date of such issuance, amendment, renewal or extension, and the aggregate face amount of the Letters of Credit to be
issued, amended, renewed or extended by it and outstanding after giving effect to such issuance, amendment, renewal or extension occurred (and whether the amount thereof changed), and the Issuing Bank shall be permitted to issue, amend, renew or
extend such Letter of Credit if the Administrative Agent shall not have advised the Issuing Bank that such issuance, amendment renewal or extension would not be in conformity with the requirements of this Agreement, (B) on each Business Day on
which such Issuing Bank makes any LC Disbursement, the date of such LC Disbursement and the amount of such LC Disbursement and (C) on any other Business Day, such other information as the Administrative Agent shall reasonably request, including
but not limited to prompt verification of such information as may be requested by the Administrative Agent. 
  
 SECTION 2.06. Funding of Borrowings. (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof by wire
transfer of immediately available funds by 12:00 noon, New York City time, to the account of the Administrative Agent most recently designated by it for such purpose by notice to the Lenders; provided that Swingline Loans shall be made as
provided in Section 2.04. The Administrative Agent will make such Loans available to the Borrower by promptly crediting the amounts so received, in like funds, to an account of the Borrower maintained with the Administrative Agent in New York
City and designated by the Borrower in the applicable Borrowing Request; provided that ABR Revolving Loans and Swingline Loans made to finance the reimbursement of an LC Disbursement as provided in Section 2.05(e) shall be remitted by
the Administrative Agent to the Issuing Bank. 
  
 (b) Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed date of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s share of such Borrowing, the Administrative Agent may
assume that such Lender has made such share available on such date in accordance with paragraph (a) of this Section and may, in reliance upon such assumption, make available to the Borrower a corresponding amount. In such event, if a Lender has
not in fact made its share of the applicable Borrowing available to the Administrative Agent, then the applicable Lender and the Borrower severally agree to pay to the Administrative Agent forthwith on demand such corresponding amount with interest
thereon, for each day from and including the date such amount is made available to the Borrower to but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender, the greater of the Federal Funds Effective Rate
and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation or (ii) in the case of the Borrower, the interest rate applicable to ABR Loans. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan included in such Borrowing. 
  
 SECTION 2.07. Interest Elections. (a) Each Revolving Borrowing and Term Borrowing initially shall be of the Type specified in the applicable
Borrowing Request and, in the case of a Eurodollar Borrowing, shall have an initial Interest Period as specified in such Borrowing Request. Thereafter, the Borrower may elect to convert such Borrowing to a different Type or to continue such
Borrowing and, in the case of a 

  

 46 

 
Eurodollar Borrowing, may elect Interest Periods therefor, all as provided in this Section. The Borrower may elect different options with respect to
different portions of the affected Borrowing, in which case each such portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing, and the Loans comprising each such portion shall be considered a separate
Borrowing. This Section shall not apply to Swingline Borrowings, which may not be converted or continued. 
  
 (b) To make an election pursuant to this Section, the Borrower shall notify the Administrative Agent of such election by telephone by the time that a
Borrowing Request would be required under Section 2.03 if the Borrower were requesting a Revolving Borrowing of the Type resulting from such election to be made on the effective date of such election. Each such telephonic Interest Election
Request shall be irrevocable and shall be confirmed promptly by hand delivery or telecopy to the Administrative Agent of a written Interest Election Request in a form approved by the Administrative Agent and signed by the Borrower. 
  
 (c) Each telephonic and written Interest Election Request shall specify the
following information in compliance with Section 2.02: 
  
 (i) the Borrowing to which such Interest Election Request applies and, if different options are being elected with respect to different portions thereof, the portions thereof to be allocated to each resulting
Borrowing (in which case the information to be specified pursuant to clauses (iii) and (iv) below shall be specified for each resulting Borrowing); 
  

(ii) the effective date of the election made pursuant to such Interest Election Request, which shall be a Business Day; 
  
 (iii) whether the resulting Borrowing is to be an ABR
Borrowing or a Eurodollar Borrowing; and 
  
 (iv)
if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period to be applicable thereto after giving effect to such election, which shall be a period contemplated by the definition of the term “Interest Period”. 
  
 If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrower shall be deemed to have selected an Interest Period of one month’s duration. 
  
 (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall advise each Lender of the details thereof and of such
Lender’s portion of each resulting Borrowing. 
  
 (e) If the
Borrower fails to deliver a timely Interest Election Request with respect to a Eurodollar Borrowing prior to the end of the Interest Period applicable thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest
Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary provision hereof, if an Event of Default has occurred and is 

  

 47 

 
continuing then, so long as an Event of Default is continuing (i) no outstanding Borrowing may be converted to or continued as a Eurodollar Borrowing
and (ii) unless repaid, each Eurodollar Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable thereto. 
  
 SECTION 2.08. Termination and Reduction of Commitments. (a) Unless previously terminated, (i) the Tranche A Commitments shall
terminate at 5:00 p.m., New York City time, on the Tranche A Termination Date, (ii) the Tranche B Commitments shall terminate at 5:00 p.m., New York City time, on the Effective Date and (iii) the Revolving Commitments shall
terminate on the Revolving Maturity Date. 
  
 (b) The Borrower may
at any time, without premium or penalty, terminate, or from time to time reduce, the Revolving Commitments or unused Tranche A Commitments; provided that (i) each reduction of the Commitments of any Class shall be in an amount that
is an integral multiple of $1,000,000 and not less than $5,000,000 and (ii) the Borrower shall not terminate or reduce the Revolving Commitments if, after giving effect to any concurrent prepayment of the Revolving Loans in accordance with
Section 2.11, the sum of the Revolving Exposures would exceed the total Revolving Commitments. 
  
 (c) The Borrower shall notify the Administrative Agent of any election to terminate or reduce the Commitments under paragraph (b) of this Section at
least three Business Days prior to the effective date of such termination or reduction, specifying such election and the effective date thereof. Promptly following receipt of any notice, the Administrative Agent shall advise the Lenders of the
contents thereof. Each notice delivered by the Borrower pursuant to this Section shall be irrevocable; provided that a notice of termination of the Revolving Commitments delivered by the Borrower may state that such notice is conditioned upon
the effectiveness of other credit facilities, in which case such notice may be revoked by the Borrower (by notice to the Administrative Agent on or prior to the specified effective date) if such condition is not satisfied. 
  
 (d) If the unused Tranche A Commitments on February 2, 2006, exceed
the then-outstanding principal amount of 7.375% Debentures and any accrued and unpaid interest thereon, the Tranche A Commitments will automatically be reduced on such date by the amount of such excess. The Borrower will notify the
Administrative Agent as soon as practicable on February 2, 2006, of the amount of any such required reduction. 
  
 (e) Any termination or reduction of the Commitments of any Class shall be permanent. Each reduction of the Commitments of any Class shall be made ratably
among the Lenders in accordance with their respective Commitments of such Class. 
  
 SECTION 2.09. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby unconditionally promises to pay (i) to the Administrative Agent for the account of each Lender the then unpaid
principal amount of each Revolving Loan of such Lender on the Revolving Maturity Date, (ii) to the Administrative Agent for the account of each Lender the then unpaid principal amount of each Term Loan of such Lender as provided in
Section 2.10 and (iii) to the Swingline Lender the then unpaid principal 

  

 48 

 
amount of each Swingline Loan on the earlier of the Revolving Maturity Date and the first date after such Swingline Loan is made that is the 15th or last day
of a calendar month and is at least five Business Days after such Swingline Loan is made; provided that on each date that a Revolving Borrowing is made, the Borrower shall repay all Swingline Loans that were outstanding on the date such
Borrowing was requested. 
  
 (b) Each Lender shall maintain in
accordance with its usual practice an account or accounts evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such Lender, including the amounts of principal and interest payable and paid to such Lender from
time to time hereunder. 
  
 (c) The Administrative Agent shall
maintain accounts in which it shall record (i) the amount of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto, (ii) the amount of any principal or interest due and payable or to become due and
payable from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the Administrative Agent hereunder for the account of the Lenders and each Lender’s share thereof. 
  
 (d) The entries made in the accounts maintained pursuant to
paragraph (b) or (c) of this Section shall be prima facie evidence of the existence and amounts of the obligations recorded therein; provided that the failure of any Lender or the Administrative Agent to maintain such
accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement. 
  

(e) Any Lender may request that Loans of any Class made by it be evidenced by a promissory note. In such event, the Borrower shall prepare, execute and
deliver to such Lender a promissory note payable to the order of such Lender (or, if requested by such Lender, to such Lender and its registered assigns) and in a form reasonably satisfactory to the Administrative Agent. Such promissory note shall
state that it is subject to the provisions of this Agreement. Thereafter, the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section 9.04) be represented by one or more
promissory notes in such form payable to the order of the payee named therein (or, if such promissory note is a registered note, to such payee and its registered assigns). 
  

 49 

 SECTION 2.10. Amortization of Term Loans. (a) Subject to adjustment pursuant to
paragraph (d) of this Section 2.10, the Borrower shall repay Tranche A Term Borrowings on each date set forth below in an aggregate principal amount equal to the percentage of the aggregate principal amount of Tranche A Term
Borrowings outstanding on the Tranche A Termination Date set forth opposite such date (each such date being called an “Installment Date”): 
  

				
	 Date

	  	Percentage of Outstanding
Tranche A Term
Borrowings on Tranche A
Termination Date

	 
	June 30, 2007	  	2.50	%
	September 30, 2007	  	2.50	%
	December 31, 2007	  	2.50	%
	March 31, 2008	  	3.75	%
	June 30, 2008	  	3.75	%
	September 30, 2008	  	3.75	%
	December 31, 2008	  	3.75	%
	March 31, 2009	  	3.75	%
	June 30, 2009	  	3.75	%
	September 30, 2009	  	3.75	%
	December 31, 2009	  	3.75	%
	March 31, 2010	  	6.25	%
	June 30, 2010	  	6.25	%
	September 30, 2010	  	6.25	%
	December 31, 2010	  	6.25	%
	March 31, 2011	  	7.50	%
	June 30, 2011	  	7.50	%
	September 30, 2011	  	7.50	%
	December 31, 2011	  	7.50	%
	Tranche A Maturity Date	  	7.50	%

  
 (b) Subject to
adjustment pursuant to paragraph (d) of this Section 2.10, the Borrower shall repay Tranche B Term Borrowings on each date set forth below in the aggregate principal amount set forth opposite such date: 
  

				
	 Date

	  	Amount

	June 30, 2006	  	$	1,000,000
	September 30, 2006	  	$	1,000,000
	December 31, 2006	  	$	1,000,000
	March 31, 2007	  	$	1,000,000
	June 30, 2007	  	$	1,000,000
	September 30, 2007	  	$	1,000,000
	December 31, 2007	  	$	1,000,000
	March 31, 2008	  	$	1,000,000
	June 30, 2008	  	$	1,000,000
	September 30, 2008	  	$	1,000,000
	December 31, 2008	  	$	1,000,000
	March 31, 2009	  	$	1,000,000
	June 30, 2009	  	$	1,000,000
	September 30, 2009	  	$	1,000,000

  

 50 

				
	 Date

	  	Amount

	 December 31, 2009
	  	$	1,000,000
	 March 31, 2010
	  	$	1,000,000
	 June 30, 2010
	  	$	1,000,000
	 September 30, 2010
	  	$	1,000,000
	 December 31, 2010
	  	$	1,000,000
	 March 31, 2011
	  	$	1,000,000
	 June 30, 2011
	  	$	1,000,000
	 September 30, 2011
	  	$	1,000,000
	 December 31, 2011
	  	$	1,000,000
	 March 31, 2012
	  	$	1,000,000
	 June 30, 2012
	  	$	1,000,000
	 Tranche B Maturity Date
	  	$	425,000,000

  
 (c) To the extent not
previously paid, (i) all Tranche A Term Loans shall be due and payable on the Tranche A Maturity Date and (ii) all Tranche B Term Loans shall be due and payable on the Tranche B Maturity Date. 
  
 (d) Any mandatory prepayment of a Term Borrowing of either Class shall be
applied to reduce the subsequent scheduled repayments of the Term Borrowings of such Class to be made pursuant to this Section first, in direct order of the first four scheduled payments to become due under Section 2.10(a) or (b), and
thereafter, ratably. Any optional prepayment of the Term Loans shall be applied to the remaining installments thereof as directed by the Borrower. 
  
 (e) Prior to any repayment of any Term Borrowings of either Class hereunder, the Borrower shall select the Borrowing or Borrowings of the applicable Class
to be repaid and shall notify the Administrative Agent by telephone (confirmed by telecopy) of such selection not later than 11:00 a.m., New York City time, three Business Days before the scheduled date of such repayment. Each repayment of a
Borrowing shall be applied ratably to the Loans included in the repaid Borrowing. Repayments of Term Borrowings shall be accompanied by accrued interest on the amount repaid. 
  
 SECTION 2.11. Prepayment of Loans. (a) The Borrower shall have the right at any time and from time to time to
prepay any Borrowing in whole or in part, without premium or penalty (but subject to Section 2.16), in an aggregate principal amount that is an integral multiple of $1,000,000 and not less than $2,000,000 (or $500,000 or more, in the case of
Swingline Loans) or, if less, the amount outstanding, subject to the requirements of this Section. 
  
 (b) In the event and on such occasion that the sum of the Revolving Exposures exceeds the total Revolving Commitments, the Borrower shall prepay Revolving
Borrowings or Swingline Borrowings (or, if no such Borrowings are outstanding, deposit cash collateral in an account with the Administrative Agent pursuant to Section 2.05(j)) in an aggregate amount equal to such excess. 
  

 51 

 (c) In the event and on each occasion that any Net Proceeds are received by or on behalf of Holdings, the
Borrower or any Subsidiary in respect of any Prepayment Event, the Borrower shall, not later than the Business Day next after the date on which such Net Proceeds are received, prepay Term Borrowings in an aggregate amount equal to the Required
Percentage of such Net Proceeds; provided that, in the case of any Asset Disposition described in clauses (a) and (b) of the definition of the term Asset Disposition, if the Borrower shall deliver to the Administrative Agent a
certificate of a Financial Officer to the effect that the Borrower or a Subsidiary intends to apply the Net Proceeds from such event (or a portion thereof specified in such certificate), within 360 days after receipt of such Net Proceeds, to
acquire, maintain, develop, construct, improve, upgrade or repair assets (other than Equity Interests) to be used in the business of the Borrower or such Subsidiaries or to fund a Permitted Acquisition in accordance with the terms of
Section 6.04, and certifying that no Event of Default has occurred and is continuing, then no prepayment shall be required pursuant to this paragraph in respect of the Net Proceeds in respect of such event (or the portion of such Net Proceeds
specified in such certificate, if applicable) except to the extent of any such Net Proceeds therefrom that have not been so applied by the end of such 360-day period or contractually committed by the end of such 360-day period to be so applied
within 360 days after the date of such contractual commitment, at which time a prepayment shall be required in an amount equal to such Net Proceeds that have not been so applied or committed (and if any portion of Net Proceeds contractually
committed to be applied within such 360-day period are not so applied within such period, a prepayment shall be required in an amount equal to such portion on the last day of such period). For purposes hereof, “Required Percentage”
shall mean: (i) in the case of an Asset Disposition, 100%; (ii) in the case of a Debt Issuance, (A) if on the date of the relevant issuance, the Pro Forma Leverage Ratio is greater than 4.50 to 1.00, 100% or (B) if on the date of
the relevant issuance, the Pro Forma Leverage Ratio is less than or equal to 4.50 to 1.00, but greater than 3.00 to 1.00, 50% or (C) if on the date of the relevant issuance, the Pro Forma Leverage Ratio is less than or equal to 3.00 to 1.00, 0%
(it being understood that a portion of such Net Proceeds from a Debt Issuance may be applied so as to reduce such Pro Forma Leverage Ratio to next lower level referred to above, and that the Required Percentage for the remainder of such Net Proceeds
shall be based on such next lower level). 
  
 (d) Following the
end of each fiscal year of the Borrower, commencing with the fiscal year ending December 31, 2006, the Borrower will prepay Term Borrowings in an aggregate amount equal to (i) 50% of Excess Cash Flow for such fiscal year minus
(ii) the aggregate amount of voluntary prepayments of Term Loans made pursuant to this Section 2.11 during such fiscal year; provided that no such prepayment shall be required in respect of any such fiscal year if the Senior Secured
Leverage Ratio is less than 2.50 to 1.00 on both the last day of such fiscal year and the date on which financial statements for such fiscal year are delivered pursuant to Section 5.01. Each prepayment pursuant to this paragraph shall be made
on or before the date on which financial statements are delivered pursuant to Section 5.01 with respect to the fiscal year for which Excess Cash Flow is being calculated (and in any event within 105 days after the end of such fiscal year).

  

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 (e) Prior to any optional or, subject to Sections 2.11(c) and (d), mandatory prepayment of
Borrowings hereunder, the Borrower shall select the Borrowing or Borrowings to be prepaid and shall specify such selection in the notice of such prepayment pursuant to paragraph (f) of this Section. In the event of any mandatory prepayment of
Term Borrowings made at a time when Term Borrowings of more than one Class remain outstanding, the Borrower shall select Term Borrowings to be prepaid so that the aggregate amount of such prepayment is allocated between the Tranche A Term Borrowings
and Tranche B Term Borrowings pro rata based on the aggregate principal amount of outstanding Borrowings of each such Class; provided that, so long as and to the extent that any Tranche A Term Borrowings remain outstanding, any
Tranche B Lender may elect, by notice to the Administrative Agent by telephone (confirmed by telecopy) at least one Business Day prior to the prepayment date, to decline all or any portion of any prepayment of its Tranche B Term Loans pursuant to
this Section (other than an optional prepayment pursuant to paragraph (a) of this Section, which may not be declined), in which case the aggregate amount of the prepayment that would have been applied to prepay Tranche B Term Loans but was so
declined shall be applied to prepay Tranche A Term Borrowings. 
  
 (f) The Borrower shall notify the Administrative Agent (and, in the case of prepayment of a Swingline Loan, the Swingline Lender) by telephone (confirmed by telecopy) of any prepayment hereunder (i) in the case of prepayment of a
Eurodollar Borrowing, not later than 2:00 p.m., New York City time, three Business Days before the date of prepayment, (ii) in the case of prepayment of an ABR Borrowing, not later than 2:00 p.m., New York City time, one Business Day before the
date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 3:00 p.m., New York City time, on the date of prepayment. Each such notice shall be irrevocable and shall specify the prepayment date, the principal
amount of each Borrowing or portion thereof to be prepaid, in the case of a mandatory prepayment, a reasonably detailed calculation of the amount of such prepayment, and, in the case of a voluntary prepayment of Term Borrowings, the application
thereof to the remaining scheduled repayments of such Borrowings; provided that, if a notice of optional prepayment is given in connection with a conditional notice of termination of the Revolving Commitments as contemplated by
Section 2.08, then such notice of prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.08. Promptly following receipt of any such notice (other than a notice relating solely to Swingline Loans),
the Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of any Borrowing shall be in an amount that would be permitted in the case of an advance of a Borrowing of the same Type as provided in
Section 2.02, except as necessary to apply fully the required amount of a mandatory prepayment or to prepay such Borrowing in full. Each prepayment of a Borrowing shall be applied ratably to the Loans included in the prepaid Borrowing.
Prepayments shall be accompanied by accrued interest and other amounts to the extent required by Sections 2.13 and 2.16. 
  
 SECTION 2.12. Fees. (a) The Borrower agrees to pay to the Administrative Agent for the account of each Revolving Lender and Tranche A
Lender (other than a Defaulting Lender) a commitment fee, which shall accrue at the Applicable Rate on the daily unused amount of each Revolving Commitment and Tranche A 

  

 53 

 
Commitment of such Lender during the period from and including the Effective Date to but excluding the date on which the Revolving Commitments or
Tranche A Commitments, as the case may be, terminate. Accrued commitment fees shall be payable in arrears on the last day of March, June, September and December of each year and on the dates on which the Revolving Commitments or Tranche A
Commitments, as the case may be, terminate, commencing on the first such date to occur after the date hereof. All commitment fees shall be computed on the basis of a year of 360 days and shall be payable for the actual number of days elapsed
(including the first day but excluding the last day). For purposes of computing commitment fees with respect to Revolving Commitments, a Revolving Commitment of a Lender shall be deemed to be used to the extent of the outstanding Revolving Loans and
LC Exposure of such Lender (and the Swingline Exposure of such Lender shall be disregarded for such purpose). 
  
 (b) The Borrower agrees to pay (i) to the Administrative Agent for the account of each Revolving Lender (other than a Defaulting Lender) a
participation fee with respect to its participations in Letters of Credit, which shall accrue at the same Applicable Rate from time to time in effect for purposes of determining the interest rate applicable to Eurodollar Revolving Loans on the daily
amount of such Lender’s LC Exposure (excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date on which such Lender’s
Revolving Commitment terminates and the date on which such Lender ceases to have any LC Exposure, and (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.25% per annum on the average daily amount of the LC Exposure
(excluding any portion thereof attributable to unreimbursed LC Disbursements) during the period from and including the Effective Date to but excluding the later of the date of termination of the Revolving Commitments and the date on which there
ceases to be any LC Exposure, as well as the Issuing Bank’s customary documentary and processing fees with respect to the issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings thereunder. Participation fees
and fronting fees accrued through and including the last day of March, June, September and December of each year shall be payable in arrears on the third Business Day following such last day, commencing on the first such date to occur after the
Effective Date; provided that all such fees shall be payable on the date on which the Revolving Commitments terminate and any such fees accruing after the date on which the Revolving Commitments terminate shall be payable on demand. Any other
fees payable to the Issuing Bank pursuant to this paragraph shall be payable within 10 days after demand. All participation fees and fronting fees shall be computed on the basis of a year of 360 days and shall be payable for the actual
number of days elapsed (including the first day but excluding the last day). 
  
 (c) The Borrower agrees to pay to the Administrative Agent, for its own account, fees payable in the amounts and at the times separately agreed upon between the Borrower and the Administrative Agent. 
  
 (d) All fees payable hereunder shall be paid on the dates due, in immediately
available funds, to the Administrative Agent (or to the applicable Issuing Bank, in the case of fees payable to it) for distribution, in the case of commitment fees 

  

 54 

 
and participation fees, to the Lenders entitled thereto. Fees paid shall not be refundable under any circumstances. 
  
 SECTION 2.13. Interest. (a) The Loans comprising each ABR
Borrowing (including each Swingline Loan) shall bear interest at the Alternate Base Rate plus the Applicable Rate. 
  
 (b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO Rate for the Interest Period in effect for such Borrowing plus
the Applicable Rate. 
  
 (c) Notwithstanding the foregoing, if any
principal of or interest on any Loan or any fee or other amount payable by the Borrower hereunder is not paid when due, whether at stated maturity, upon acceleration or otherwise, such overdue amount shall bear interest, after as well as before
judgment, at a rate per annum equal to (i) in the case of overdue principal of any Loan, 2% plus the rate otherwise applicable to such Loan as provided in the preceding paragraphs of this Section or (ii) in the case of any other amount, 2%
plus the rate applicable to ABR Revolving Loans as provided in paragraph (a) of this Section. 
  
 (d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon
termination of the Revolving Commitments; provided that (i) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of any Loan (other than a
prepayment of an ABR Revolving Loan prior to the end of the Revolving Availability Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of such repayment or prepayment and (iii) in the event of any
conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable on the effective date of such conversion. 
  
 (e) All interest hereunder shall be computed on the basis of a year of 360 days, except that interest computed by
reference to the Alternate Base Rate at times when the Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of 365 days (or 366 days in a leap year), and in each case shall be payable for the actual
number of days elapsed (including the first day but excluding the last day). The applicable Alternate Base Rate or Adjusted LIBO Rate shall be determined by the Administrative Agent, and such determination shall be conclusive absent manifest error.

  
 SECTION 2.14. Alternate Rate of Interest. If prior to
the commencement of any Interest Period for a Eurodollar Borrowing: 
  
 (a) the Administrative Agent determines (which determination shall be conclusive absent manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO Rate for such Interest Period;
or 
  
 (b) the Administrative Agent is advised by
the Required Lenders that the Adjusted LIBO Rate for such Interest Period will not adequately and 

  

 55 

 
fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period; 
  
 then the Administrative Agent shall give notice thereof to the Borrower and the Lenders by
telephone or telecopy as promptly as practicable thereafter and, until the Administrative Agent notifies the Borrower and the Lenders that the circumstances giving rise to such notice no longer exist, (i) any Interest Election Request that
requests the conversion of any Borrowing to, or continuation of any Borrowing as, a Eurodollar Borrowing shall be ineffective and (ii) if any Borrowing Request requests a Eurodollar Borrowing, such Borrowing shall be made as an ABR Borrowing;
provided, however, that, in the case of a notice received pursuant to clause (b) above, if the Administrative Agent is able prior to the commencement of such Interest Period to ascertain, after using reasonable efforts to poll the
Lenders giving such notice, that a rate other than the Alternate Base Rate would adequately and fairly reflect the cost to such Lenders of making or maintaining their Loans included in such Borrowing for such Interest Period, the Administrative
Agent shall notify the Borrower of such alternate rate and the Borrower may agree by written notice to the Administrative Agent prior to the commencement of such Interest Period to increase the Applicable Rate for the Loans included in such
Borrowing for such Interest Period to result in an interest rate equal to such alternate rate, in which case such increased Applicable Rate shall apply to all the Eurodollar Loans included in the relevant Borrowing. 
  
 SECTION 2.15. Increased Costs. (a) If any Change in Law (except
with respect to Taxes, which shall be governed by Section 2.17) shall: 
  
 (i) impose, modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by, any Lender (except any such reserve requirement
reflected in the Adjusted LIBO Rate) or the Issuing Bank; or 
  
 (ii) impose on any Lender or the Issuing Bank or the London interbank market any other condition affecting this Agreement or Eurodollar Loans made by such Lender or any Letter of Credit or participation therein;

  
 and the result of any of the foregoing shall be to increase the cost to such
Lender of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining any Letter of Credit or to reduce the
amount of any sum received or receivable by such Lender or the Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts
as will compensate such Lender or the Issuing Bank, as the case may be, for such additional costs incurred or reduction suffered. 
  
 (b) If any Lender or the Issuing Bank determines that any Change in Law regarding capital requirements has or would have the effect of reducing the rate
of return on such Lender’s or the Issuing Bank’s capital or on the capital of such Lender’s or the 

  

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Issuing Bank’s holding company, if any, as a consequence of this Agreement or the Loans made by, or participations in Letters of Credit held by, such
Lender, or the Letters of Credit issued by the Issuing Bank, to a level below that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company could have achieved but for such Change in Law (taking into
consideration such Lender’s or the Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company with respect to capital adequacy), then from time to time after submission by such Lender to the
Borrower of a written request therefor, the Borrower will pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such Lender or the Issuing Bank or such Lender’s or the Issuing
Bank’s holding company for any such reduction suffered. 
  
 (c) A certificate of a Lender or the Issuing Bank setting forth in reasonable detail the matters giving rise to a claim under this Section 2.15 and the calculation of such claim by such Lender or the Issuing Bank or its holding
company, as the case may be, shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within
10 days after receipt thereof. 
  
 (d) Failure or delay on
the part of any Lender or the Issuing Bank to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right to demand such compensation; provided that the Borrower shall not
be required to compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or reductions incurred more than 180 days prior to the date that such Lender or the Issuing Bank, as the case may be, notifies the Borrower
of the Change in Law giving rise to such increased costs or reductions and of such Lender’s or the Issuing Bank’s intention to claim compensation therefor; provided further that, if the Change in Law giving rise to such
increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof. 
  

SECTION 2.16. Break Funding Payments. In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last day of
an Interest Period applicable thereto (including as a result of an Event of Default), (b) the conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable thereto, (c) the failure to borrow, convert,
continue or prepay any Eurodollar Loan on the date specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked under Section 2.11(f) and is revoked in accordance therewith) or (d) the assignment of
any Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of a request by the Borrower pursuant to Section 2.19 or Section 9.02(c), then, in any such event, the Borrower shall compensate each
Lender for the loss, cost and expense attributable to such event. Such loss, cost or expense to any Lender shall consist of an amount determined by such Lender to be the excess, if any, of (i) the amount of interest that would have accrued on
the principal amount of such Loan had such event not occurred, at the Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of such event to the last day of the then current Interest Period therefor (or, in
the case of a failure to borrow, convert or continue, for the 

  

 57 

 
period that would have been the Interest Period for such Loan), over (ii) the amount of interest that would accrue on such principal amount for such
period at the interest rate that such Lender would bid were it to bid, at the commencement of such period, for dollar deposits of a comparable amount and period from other banks in the Eurodollar market. A certificate of any Lender setting forth any
amount or amounts that such Lender is entitled to receive pursuant to this Section shall be delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay such Lender the amount shown as due on any such certificate
within 10 days after receipt thereof. 
  
 SECTION 2.17.
Taxes. (a) Any and all payments by or on account of any obligation of the Borrower hereunder or under any other Loan Document shall be made free and clear of, and without deduction for, any Indemnified Taxes or Other Taxes;
provided that if the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section) the Administrative Agent, Lender or Issuing Bank (as the case may be) receives an amount equal to the sum it would have received had no such deductions been made, (ii) the
Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant Governmental Authority in accordance with applicable law. 
  
 (b) In addition, the Borrower shall pay any Other Taxes to the relevant Governmental Authority in accordance with applicable
law. 
  
 (c) The Borrower shall indemnify the Administrative
Agent, each Lender and the Issuing Bank, within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing Bank, as the case may be, on or with
respect to any payment by or on account of any obligation of the Borrower hereunder or under any other Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under this Section) and any
penalties, interest and reasonable expenses arising therefrom or with respect thereto. A certificate as to the amount of such payment or liability prepared in good faith and delivered to the Borrower by a Lender or the Issuing Bank, or by the
Administrative Agent on its own behalf or on behalf of a Lender or the Issuing Bank, shall be presumed correct, provided that upon reasonable request of the Borrower, a Lender shall provide all relevant information reasonably accessible to it
justifying such amount. 
  
 (d) As soon as practicable after any
payment of Indemnified Taxes or Other Taxes by the Borrower to a Governmental Authority, the Borrower shall deliver to the Administrative Agent a copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return
reporting such payment or other evidence of such payment reasonably satisfactory to the Administrative Agent. 
  
 (e) A Foreign Lender shall deliver to the Borrower and the Administrative Agent a copy of either U.S. Internal Revenue Service Form W-8BEN or Form W-8ECI,
or, in the case of a Foreign Lender claiming exemption from U.S. federal withholding tax 

  

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under Section 871(h) or 881(c) of the Code with respect to payments of “portfolio interest” a statement to the effect that such Lender is
eligible for a complete exemption from withholding of U.S. taxes under Section 871(h) or 881(c) of the Code and a Form W-8BEN, or any subsequent versions thereof or successors thereto properly completed and duly executed by such Foreign Lender
claiming complete exemption from, or a reduced rate of, U.S. federal withholding tax on all payments by the Borrower under this Agreement and the other Loan Documents. Such forms shall be delivered by each Foreign Lender on or before the date it
becomes a party to this Agreement. 
  
 (f) If the Administrative
Agent, a Lender or the Issuing Bank determines, in its reasonable judgment, that it has received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or with respect to which the Borrower has paid additional
amounts pursuant to this Section 2.17, it shall pay over such refund to the Borrower within a reasonable period of time (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrower under this Section 2.17
with respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative Agent, such Lender or the Issuing Bank and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund); provided, that the Borrower, upon the request of the Administrative Agent, such Lender or the Issuing Bank, agrees to repay the amount paid over to the Borrower (plus any penalties, interest or other
charges imposed by the relevant Governmental Authority) to the Administrative Agent, such Lender or the Issuing Bank in the event the Administrative Agent, such Lender or the Issuing Bank is required to repay such refund to such Governmental
Authority. This Section shall not be construed to require the Administrative Agent, any Lender or the Issuing Bank to make available its tax returns (or any other information relating to its Taxes that it deems confidential) to the Borrower or any
other Person. 
  
 SECTION 2.18. Payments Generally; Pro Rata
Treatment; Sharing of Setoffs. (a) The Borrower shall make each payment required to be made by it hereunder or under any other Loan Document (whether of principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable
under Section 2.15, 2.16 or 2.17, or otherwise) prior to the time expressly required hereunder or under such other Loan Document for such payment (or, if no such time is expressly required, prior to 2:00 p.m., New York City time), on the date
when due, in immediately available funds, without setoff or counterclaim. Any amounts received after such time on any date may, in the discretion of the Administrative Agent, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to the Administrative Agent at its offices at 270 Park Avenue, New York, New York, except payments to be made directly to the Issuing Bank or Swingline Lender as expressly
provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be made directly to the Persons entitled thereto and payments pursuant to other Loan Documents shall be made to the Persons specified therein. The
Administrative Agent shall distribute any such payments received by it for the account of any other Person to the appropriate recipient promptly following receipt thereof. If any payment under any Loan Document shall be due on a day that is not a
Business Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case 

  

 59 

 
of any payment accruing interest, interest thereon shall be payable for the period of such extension. All payments under each Loan Document shall be made in
dollars. 
  
 (b) If at any time insufficient funds are received by
and available to the Administrative Agent to pay fully all amounts of principal, unreimbursed LC Disbursements, interest and fees then due hereunder, such funds shall be applied (i) first, towards payment of interest and fees then due
hereunder, ratably among the parties entitled thereto in accordance with the amounts of interest and fees then due to such parties, and (ii) second, towards payment of principal and unreimbursed LC Disbursements then due hereunder, ratably
among the parties entitled thereto in accordance with the amounts of principal and unreimbursed LC Disbursements then due to such parties. 
  
 (c) If any Lender shall, by exercising any right of setoff or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any
of its Revolving Loans, Term Loans or participations in LC Disbursements or Swingline Loans resulting in such Lender receiving payment of a greater proportion of the aggregate amount of its Revolving Loans, Term Loans and participations in LC
Disbursements and Swingline Loans and accrued interest thereon than the proportion received by any other Lender, then the Lender receiving such greater proportion shall purchase (for cash at face value) participations in the Revolving Loans, Term
Loans and participations in LC Disbursements and Swingline Loans of other Lenders to the extent necessary so that the benefit of all such payments shall be shared by the Lenders ratably in accordance with the relative aggregate amounts of principal
of and accrued interest on their Revolving Loans, Term Loans and participations in LC Disbursements and Swingline Loans; provided that (i) if any such participations are purchased and all or any portion of the payment giving rise thereto
is recovered, such participations shall be rescinded and the purchase price restored to the extent of such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed to apply to any payment made by the Borrower
pursuant to and in accordance with the express terms of this Agreement or any payment obtained by a Lender as consideration for the assignment of or sale of a participation in any of its Loans or participations in LC Disbursements to any assignee or
participant, other than to the Borrower or any Subsidiary or Affiliate thereof (as to which the provisions of this paragraph shall apply). The Borrower consents to the foregoing and agrees, to the extent it may effectively do so under applicable
law, that any Lender acquiring a participation pursuant to the foregoing arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to such participation as fully as if such Lender were a direct creditor of the
Borrower in the amount of such participation. 
  
 (d) Unless the
Administrative Agent shall have received notice from the Borrower prior to the date on which any payment is due to the Administrative Agent for the account of the Lenders or the Issuing Bank hereunder that the Borrower will not make such payment,
the Administrative Agent may assume that the Borrower has made such payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the Issuing Bank, as the case may be, the amount due. In such
event, if the Borrower has not in fact made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally agrees to repay to the Administrative 

  

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Agent forthwith on demand the amount so distributed to such Lender or Issuing Bank with interest thereon, for each day from and including the date such
amount is distributed to it to but excluding the date of payment to the Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank
compensation. 
  
 (e) If any Lender shall fail to make any payment
required to be made by it pursuant to Section 2.04(c), 2.05(d) or (e), 2.06(b), 2.18(d) or 9.03(c), then the Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply any amounts thereafter received by
the Administrative Agent for the account of such Lender to satisfy such Lender’s obligations under such Sections until all such unsatisfied obligations are fully paid. 
  
 SECTION 2.19. Mitigation Obligations; Replacement of Lenders. (a) If any Lender requests compensation under
Section 2.15, or if the Borrower is required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, then such Lender shall use reasonable efforts to designate a
different lending office for funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or assignment
(i) would eliminate or reduce amounts payable pursuant to Section 2.15 or 2.17, as the case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to
such Lender in any material respect. The Borrower hereby agrees to pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment. 
  
 (b) If any Lender requests compensation under Section 2.15, or if the Borrower is required to pay any additional amount
to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.17, or if any Lender is a Defaulting Lender, then the Borrower may, at its sole expense and effort, upon notice to such Lender and the
Administrative Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in Section 9.04), all its interests, rights and obligations under this Agreement to an assignee
that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment); provided that (i) the Borrower shall have received the prior written consent of the Administrative Agent (and, if a Revolving
Commitment is being assigned, the Issuing Bank and Swingline Lender), which consent shall not unreasonably be withheld and (ii) such Lender shall have received payment of an amount equal to the outstanding principal of its Loans and funded
participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding principal and accrued interest and fees) or the
Borrower (in the case of all other amounts) and such Lender shall be released from all obligations hereunder. A Lender shall not be required to make any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. Nothing in this Section 2.19 shall be deemed to prejudice any 

  

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rights that the Borrower may have against a Lender that is a Defaulting Lender in respect of actions taken or not taken by such Lender prior to its
replacement hereunder. 
  
 ARTICLE III 
  
 Representations and Warranties 
  
 Each of Holdings and the Borrower represents and warrants to the Lenders
that, except as disclosed on the disclosure schedules hereto, (the representations and warranties made on the Closing Date are deemed made concurrently with the consummation of the Transactions): 
  
 SECTION 3.01. Organization; Powers. Each of Holdings, the Borrower and
its Subsidiaries is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, has all requisite power and authority to carry on its business as now conducted and, except where the failure to do so,
individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect, is qualified to do business in, and is in good standing in, every jurisdiction where such qualification is required. 
  
 SECTION 3.02. Authorization; Enforceability. The Transactions entered
into and to be entered into by each Loan Party are within such Loan Party’s corporate or limited liability company powers, as applicable, and have been duly authorized by all necessary corporate or limited liability company and, if required,
stockholder action. This Agreement has been duly executed and delivered by each of Holdings and the Borrower and constitutes, and each other Loan Document to which any Loan Party is to be a party, when executed and delivered by such Loan Party, will
constitute, a legal, valid and binding obligation of Holdings, the Borrower or such Loan Party (as the case may be), enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law, and implied covenants of good faith and fair dealing. 

 
 SECTION 3.03. Governmental Approvals; No Conflicts. (a) The
Transactions do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect and except (i) filings necessary
to perfect Liens created under the Loan Documents and (ii) the recordation of Mortgages, (b) the Transactions will not violate any applicable law or regulation or the charter, by-laws or other organizational documents of Holdings, the
Borrower or any of its Subsidiaries or any order of any Governmental Authority, (c) the Acquisition will not violate or result in a default under any indenture, agreement or other instrument binding upon Holdings, the Borrower or any of its
Subsidiaries or any of their assets, or give rise to a right thereunder to require any payment to be made by Holdings, the Borrower or any of its Subsidiaries, (d) the Financing Transactions will not violate or result in a default under any
indenture, 

  

 62 

 
agreement or other instrument binding upon Holdings, the Borrower or any of its Subsidiaries or any of their assets, or give rise to a right thereunder to
require any payment to be made by Holdings, the Borrower or any of its Subsidiaries, and (e) the Transactions will not result in the creation or imposition of any Lien on any asset of Holdings, the Borrower or any of its Subsidiaries, except
Liens permitted under Section 6.02; except, in the case of clauses (a), (b) and (c), where the failure to obtain such consent or approval or make such registration, filing or action or any such violation or default would not
reasonably be expected to result, individually or in the aggregate, in a Material Adverse Effect or have a material adverse effect upon the validity or enforceability of the Loan Documents or the rights of the Lenders thereunder. 
  
 SECTION 3.04. Financial Condition; No Material Adverse Change.
(a) The Borrower has heretofore furnished to the Lenders the combined balance sheet and statements of income, and cash flows of the Acquired Business as of and for the fiscal years ended December 31, 2004, December 31, 2003 and
December 31, 2002, reported on by Ernst & Young LLP, independent registered public accountants, without qualification. Such financial statements present fairly, in all material respects, the financial position and results of operations
and cash flows of the Acquired Business as of such dates and for such periods in accordance with GAAP. 
  
 (b) The Borrower has heretofore furnished to the Lenders its pro forma consolidated balance sheet as of December 31, 2004, prepared
giving effect to the Transactions as if such Transactions had occurred on such date. Such pro forma consolidated balance sheet (i) has been prepared in good faith based on the same assumptions used to prepare the pro
forma financial statements included in the Information Memorandum (which assumptions are believed by Holdings and the Borrower to have been reasonable at the time made) and (ii) presents fairly, in all material respects, the pro
forma financial position of the Borrower and its consolidated Subsidiaries as of such date, as if the Transactions had occurred on such date. 
  
 (c) Except as disclosed in the financial statements referred to above or the notes thereto or in the Information Memorandum and except for the Disclosed
Matters, after giving effect to the Transactions, none of Holdings, the Borrower or its Subsidiaries has, as of the Effective Date, any contingent liabilities or unusual long-term commitments that, individually or in the aggregate, would reasonably
be excepted to result in a Material Adverse Effect. 
  
 (d) Since
December 31, 2004, there has been no material adverse change in the business, operations or financial condition of the Acquired Business, Holdings, the Borrower and their Subsidiaries, taken as a whole. 
  
 SECTION 3.05. Properties. (a) Each of Holdings, the Borrower and
its Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property material to its business (including its Mortgaged Properties), except for defects in title that do not interfere with its ability to conduct its
business as currently conducted or to utilize such properties for their intended purposes and except where the failure to 

  

 63 

 
have such title or interests would not reasonably be expected, individually or in the aggregate, to result in a Material Adverse Effect. 
  
 (b) Each of Holdings, the Borrower and its Subsidiaries owns, or is licensed
to use, all trademarks, tradenames, copyrights, patents and other intellectual property material to its business, and the use thereof by Holdings, the Borrower and its Subsidiaries does not infringe upon the rights of any other Person, except, in
each case, for any matters that, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. 
  
 (c) Schedule 3.05 sets forth the address of each real property that is owned or leased by the Borrower or any of its Subsidiaries as of the Effective Date
after giving effect to the Transactions and indicates each parcel of real property owned in fee that is a Mortgaged Property as of the Effective Date. 
  
 SECTION 3.06. Litigation and Environmental Matters. (a) There are no actions, suits, proceedings or investigations by or before any arbitrator
or Governmental Authority pending against or, to the knowledge of Holdings or the Borrower, threatened against or affecting Holdings, the Borrower or any of their Subsidiaries (i) which would reasonably be expected, individually or in the
aggregate, to result in a Material Adverse Effect (other than the Disclosed Matters) or (ii) that involve any of the Loan Documents or the Transactions. 
  
 (b) Except for either the Disclosed Matters or any other matters that, individually or in the aggregate, would not reasonably be expected to result in a
Material Adverse Effect, none of Holdings, the Borrower or any of their Subsidiaries (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any
Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has received written notice of any claim with respect to any Environmental Liability or (iv) knows of any facts or circumstances which are reasonably
likely to form the basis for any Environmental Liability. 
  
 SECTION 3.07. Compliance with Laws. Each of Holdings, the Borrower and their Subsidiaries is in compliance with all laws, regulations and orders of any Governmental Authority (including the Communications Act, the regulations of
HPUC, and any orders of the FCC or HPUC) applicable to it or its property, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect. 
  
 SECTION 3.08. Licenses; Tariffs. (a) The Borrower and its
Subsidiaries hold all FCC Licenses that are necessary for the operation of their businesses as currently conducted, except to the extent that failures to hold any such FCC Licenses, individually or in the aggregate, would not reasonably be expected
to result in a Material Adverse Effect. Each such FCC License is in full force and effect and such FCC Licenses are not subject to any restriction or conditions that limit the operation of the businesses of the Borrower and its Subsidiaries, other
than restrictions or conditions generally applicable to licenses of that type. 
  

 64 

 (b) Holdings, the Borrower and the Subsidiaries hold all permits, licenses, waivers, orders, approvals,
concessions, registrations and other authorizations issued or provided by any Governmental Authority (other than the FCC), including HPUC, under all applicable laws, that are material to and necessary for Holdings, the Borrower and each of the
Subsidiaries to own its assets and conduct the Acquired Business and other businesses currently conducted by it (“Operating Licenses”), except to the extent that failures to hold any such Operating Licenses, individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse Effect. 
  
 (c) HPUC or such other Governmental Authority having jurisdiction thereof has approved all material regulatory tariffs required to permit each of the Borrower and the Subsidiaries to operate its businesses as
currently operated, all such regulatory tariffs are in full force and effect and neither the Borrower nor any Subsidiary has failed to comply with the terms of any such tariff, except in each case any lack of approvals or failures which,
individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. 
  
 (d) Neither Holdings nor the Borrower has knowledge of any investigation, notice of apparent liability, violation, forfeiture or other order or complaint
issued by or before the FCC or HPUC, or of any other proceedings (other than proceedings relating to the telecommunications industries generally) of or before the FCC or HPUC, which would reasonably be expected to have a Material Adverse Effect.

  
 (e) To the best knowledge of Holdings and the Borrower, no
event has occurred which (i) has resulted in, or after notice or lapse of time or both would result in, revocation, suspension, adverse modification, non-renewal, impairment, restriction or termination of, or order of forfeiture with respect
to, any FCC License or Operating License in any respect which could reasonably be expected to have a Material Adverse Effect or (ii) affects or could reasonably be expected in the future to affect any of the rights of Holdings, the Borrower or
any Subsidiary under any FCC License or Operating License held by it in any respect which would reasonably be expected to have a Material Adverse Effect. 
  
 (f) Each of Holdings, the Borrower and the Subsidiaries has duly filed in a timely manner all material filings, reports, applications, documents,
instruments and information required to be filed by it under the Communications Act, and all such filings were when made true, correct and complete in all material respects. Holdings and the Borrower have no reason to believe that any FCC License or
Operating License held by the Borrower or any Subsidiary will not be renewed in the ordinary course. 
  
 SECTION 3.09. Investment and Holding Company Status. None of Holdings, the Borrower or any of its Subsidiaries is (a) an “investment
company” as defined in, or subject to regulation under, the Investment Company Act of 1940 or (b) a “holding company” as defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935. 
  

 65 

 SECTION 3.10. Taxes. Each of Holdings, the Borrower and its Subsidiaries has timely filed or
caused to be filed all material Tax returns and reports required to have been filed and has paid or caused to be paid all material Taxes required to have been paid by it, except any Taxes that are being contested in good faith by appropriate
proceedings and for which Holdings, the Borrower or such Subsidiary, as applicable, has set aside on its books adequate reserves. 
  
 SECTION 3.11. ERISA; Margin Regulations. (a) During the five year period prior to the date on which this representation is made or deemed to
be made with respect to any Plan or Multiemployer Plan, no ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other such ERISA Events for which liability has occurred during such five year period or for
which liability is reasonably expected to occur, could reasonably be expected to result in a Material Adverse Effect. The present value of all accumulated benefit obligations under each Plan (based on the assumptions used for purposes of Statement
of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the assets of such Plan by an amount that would reasonably be expected to have a
Material Adverse Effect, and the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the
most recent financial statements reflecting such amounts, exceed the fair market value of the assets of all such underfunded Plans by an amount that would reasonably be expected to have a Material Adverse Effect. 
  
 (b) None of Holdings, the Borrower or any of its Subsidiaries is engaged
principally, or as one of its important activities, in the business of extending credit for the purpose of buying or carrying Margin Stock. No part of the proceeds of any Loan or any Letter of Credit will be used, whether directly or indirectly, and
whether immediately, incidentally or ultimately, in any manner that would entail a violation of the regulations of the Board, including Regulation T, U or X. 
  
 SECTION 3.12. Disclosure. Neither the Information Memorandum nor any of the other written reports, financial statements, certificates or other
written information, taken as a whole, furnished by or on behalf of any Loan Party to the Administrative Agent or any Lender in connection with the negotiation of this Agreement or any other Loan Document or delivered hereunder or thereunder (as of
the date thereof and as modified or supplemented by other information so furnished) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under
which they were made, not misleading; provided that, with respect to information of a general economic nature, estimates and projected financial information, Holdings and the Borrower represent only that such information was prepared in good
faith based upon assumptions believed to be reasonable (i) at the time such projected financial information was prepared, (ii) on the date of the Information Memorandum and (iii) as of the date hereof (it being understood that actual
results may vary materially from such projected financial information). 
  

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 SECTION 3.13. Subsidiaries. Schedule 3.13 sets forth (i) the name of, and the ownership
interest of Holdings in, each subsidiary of Holdings and identifies each subsidiary that is a Subsidiary Loan Party, in each case as of the Effective Date, and (ii) the name of, and the ownership interest of the Borrower in, each Subsidiary of
the Borrower and identifies each Subsidiary that is a Subsidiary Loan Party, in each case as of the Effective Date. 
  
 SECTION 3.14. Insurance. Schedule 3.14 sets forth a description of all material insurance maintained by or on behalf of Holdings, the Borrower and
its Subsidiaries as of the Effective Date. As of the Effective Date, all premiums due and payable in respect of such insurance have been paid. Holdings and the Borrower believe that the insurance maintained by or on behalf of Holdings, the Borrower
and its Subsidiaries is adequate. 
  
 SECTION 3.15. Labor
Matters. Except as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect: (a) as of the Effective Date, there are no strikes, lockouts or slowdowns against Holdings, the Borrower or any
Subsidiary pending or, to the knowledge of Holdings or the Borrower, threatened; (b) the hours worked by and payments made to employees of Holdings, the Borrower and the Subsidiaries have not been in violation of the Fair Labor Standards Act or
any other applicable Federal, state, local or foreign law dealing with such matters; (c) all payments due from Holdings, the Borrower or any Subsidiary, or for which any claim may be made against Holdings, the Borrower or any Subsidiary, on
account of wages and employee health and welfare insurance and other benefits, have been paid or accrued as a liability on the books of Holdings, the Borrower or such Subsidiary; and (d) the consummation of the Transactions will not give rise
to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement to which Holdings, the Borrower or any Subsidiary is bound. 
  
 SECTION 3.16. Solvency. Immediately after the consummation of the Transactions to occur on the Effective Date
(a) the fair value of the assets of the Borrower (individually) and Holdings, the Borrower and its subsidiaries on a consolidated basis, at a fair valuation, will exceed the debts and liabilities, subordinated, contingent or otherwise ,
respectively, of the Borrower (individually) and Holdings, the Borrower and its subsidiaries on a consolidated basis; (b) the present fair saleable value of the property of the Borrower (individually) and Holdings, the Borrower and its
subsidiaries on a consolidated basis will be greater than the amount that will be required to pay the probable liability of the debts and other liabilities, subordinated, contingent or otherwise, of the Borrower (individually) and Holdings, the
Borrower and its subsidiaries on a consolidated basis as such debts and other liabilities become absolute and matured; (c) the Borrower (individually) and Holdings, the Borrower and its subsidiaries on a consolidated basis will be able to pay
the debts and liabilities, subordinated, contingent or otherwise, respectively, of the Borrower (individually) and Holdings, the Borrower and its subsidiaries on a consolidated basis, as such debts and liabilities become absolute and matured; and
(d) the Borrower (individually) and Holdings, the Borrower and its subsidiaries on a consolidated basis will not have unreasonably small capital with which 

  

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to conduct the businesses in which they are engaged as such businesses are now conducted and are proposed to be conducted following the Effective Date.

  
 SECTION 3.17. Senior Indebtedness. The Obligations
constitute “Senior Indebtedness” under and as defined in the Senior Subordinated Debt Documents. 
  
 SECTION 3.18. Acquisition. As of the Effective Date, each of the Acquisition Agreement and the Verizon Agreements has been duly authorized,
executed and delivered by each of the parties thereto and constitutes a legal, valid and binding obligation of each such party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law, and implied covenants of good faith and fair dealing. A true and correct copy
(including any amendments and waivers) of the Acquisition Agreement and of each of the Verizon Agreements has been furnished to the Administrative Agent. Except as consented to by the Required Lenders, (i) neither the Acquisition Agreement nor
any Verizon Agreement entered into at the time the Acquisition Agreement was entered into has been amended, modified or waived in any material respect and (ii) each Verizon Agreement entered into upon consummation of the Acquisition is in the
form of such agreement initially attached as an exhibit to the Acquisition Agreement. 
  
 SECTION 3.19. Security Documents. (a) Each of the Collateral Agreement and the Shared Collateral Agreement are effective to create in favor of the Collateral Agent, for the benefit of the respective
Secured Parties, a legal, valid and enforceable security interest in the Collateral described therein and proceeds thereof. In the case of the Pledged Stock (as defined in the Collateral Agreement and the Shared Collateral Agreement), when stock
certificates representing such Pledged Stock are delivered to the Collateral Agent, and in the case of the other Collateral described in the Collateral Agreement and Shared Collateral Agreement (other than the Intellectual Property, as defined in
the Collateral Agreement and the Shared Collateral Agreement), when financing statements and other filings specified on Schedule 5 of the Perfection Certificate in appropriate form are filed in the offices specified on Schedule 6 of the Perfection
Certificate (as updated by the Borrower from time to time in accordance with Section 5.03), the Collateral Agreement and the Shared Collateral Agreement shall constitute a fully perfected Lien on, and security interest in, all right, title and
interest of the Loan Parties in the Collateral and the proceeds thereof, as security for the Obligations, to the extent perfection can be obtained by filing Uniform Commercial Code financing statements, in each case prior and superior in right to
any other Person (except, in the case of Collateral other than the Pledged Stock, Liens permitted by Section 6.02(a)). 
  
 (b) When the Collateral Agreement and the Shared Collateral Agreement or summaries thereof are properly filed in the United States Patent and Trademark
Office and the United States Copyright Office, and, with respect to Collateral in which a security interest cannot be perfected by such filings, upon the proper filing of the financing statements referred to in paragraph (a) above, the
Collateral Agreement and the Shared 

  

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Collateral Agreement and such financing statements shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of the
grantors thereunder in the Intellectual Property (as defined in the Collateral Agreement and the Shared Collateral Agreement), in each case prior and superior in right to any other Person, except in the case of Intellectual Property subject to the
Shared Collateral Agreement, Liens permitted by Section 6.02(a)(i) (it being understood that subsequent recordings in the United States Patent and Trademark Office and the United States Copyright Office may be necessary to perfect a lien on
registered trademarks and patents, trademark and patent applications and registered copyrights acquired by the grantors after the date hereof). 
  
 (c) The Mortgages entered into on the Effective Date are, and the Mortgages, if any, entered into after the Effective Date pursuant to Section 5.12
shall be, effective to create in favor of the Collateral Agent, for the ratable benefit of the applicable Secured Parties, a legal, valid and enforceable Lien on all of the Loan Parties’ right, title and interest in and to the Mortgaged
Property thereunder and the proceeds thereof, and when such Mortgages are filed in the proper real estate filing offices, such Mortgages shall constitute a fully perfected Lien on, and security interest in, all right, title and interest of Loan
Parties in such Mortgages Property and the proceeds thereof, in each case prior and superior in right to any other Person, other than with respect to the rights of Person pursuant to Liens expressly permitted by Section 6.02(a). 
  
 SECTION 3.20. Liens. There are no Liens of any nature whatsoever on
any properties of Holdings, the Borrower or any of its Subsidiaries other than Permitted Encumbrances and Liens permitted by Section 6.02(a). 
  
 SECTION 3.21. License Subsidiary Obligations. No License Subsidiary has any obligations or liabilities of any nature, including in connection with
intercompany transactions, other than (i) under the Collateral Agreement, (ii) under its Special Purpose Subsidiary Funding Agreement, and (iii) franchise and corporate taxes incurred in the ordinary course in order for it to continue
to maintain its existence. 
  
 ARTICLE IV 
  
 Conditions 
  
 SECTION 4.01. Effective Date. The obligations of the Lenders to make
Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become effective until the date on which each of the following conditions is satisfied (or waived in accordance with Section 9.02): 
  
 (a) The Administrative Agent (or its counsel) shall have
received from each party hereto either (i) a counterpart of this Agreement signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include telecopy or electronic transmission of a signed
signature page of this Agreement) that such party has signed a counterpart of this Agreement. 
  

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 (b) The Administrative Agent shall have received favorable written opinions (addressed to
the Administrative Agent and the Lenders and dated the Effective Date) of (i) Latham & Watkins LLP, counsel for the Borrower, substantially in the form of Exhibit B-1, (ii) Latham & Watkins LLP, FCC regulatory counsel for
the Borrower, substantially in the form of Exhibit B-2, (iii) Ishikawa Morihara Lau & Fong LLP, Hawaiian regulatory counsel for the Borrower, substantially in the form of Exhibit B-3 and (iv) Ishikawa Morihara
Lau & Fong LLP, local Hawaiian counsel for the Borrower, substantially in the form of Exhibit B-4. 
  
 (c) The Administrative Agent shall have received such documents and certificates as the Administrative Agent or its counsel may reasonably
request relating to the organization, existence and good standing of each Loan Party, the authorization of the Transactions and any other legal matters relating to the Loan Parties, the Loan Documents or the Transactions, all in form and substance
reasonably satisfactory to the Administrative Agent. 
  
 (d) The Administrative Agent shall have received a certificate, dated the Effective Date and signed by an executive officer or a Financial Officer of the Borrower, confirming compliance with the conditions set forth in
paragraphs (a) and (b) of Section 4.02. 
  
 (e) The Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including, to the extent invoiced, reimbursement or payment of all reasonable documented out-of-pocket expenses
(including reasonable fees, charges and disbursements of counsel) required to be reimbursed or paid by any Loan Party hereunder or under any other Loan Document. The other costs and expenses of the Transactions, to the extent then due and owing,
shall have been paid, or shall be paid substantially simultaneously with the initial Borrowings hereunder. 
  
 (f) The Collateral and Guarantee Requirement shall have been satisfied and the Administrative Agent shall have received a completed
Perfection Certificate dated the Effective Date and signed by an executive officer or Financial Officer of the Borrower, together with all attachments contemplated thereby, including the results of a search of the Uniform Commercial Code (or
equivalent) filings made with respect to the Loan Parties in the jurisdictions contemplated by the Perfection Certificate and copies of the financing statements (or similar documents) disclosed by such search and evidence reasonably satisfactory to
the Administrative Agent that the Liens indicated by such financing statements (or similar documents) are permitted by Section 6.02 or have been released. 
  

(g) The Administrative Agent shall have received evidence that the insurance required by Section 5.07 and the Security Documents
is in effect. 
  

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 (h) The Equity Financing shall have been consummated, and the Borrower shall have
received, as a common capital contribution from Holdings, gross cash proceeds of not less than $425,000,000 from the Equity Financing. The Administrative Agent shall have received copies of all instruments, agreements or other documents evidencing
the Equity Financing, certified by an executive officer or a Financial Officer as true and correct. 
  
 (i) The Borrower shall have received gross cash proceeds of not less than $150,000,000 from the issuance of the Senior Subordinated Debt.
The terms and conditions of the Senior Subordinated Debt and the provisions of the Senior Subordinated Debt Documents shall be consistent in all material respects with the Offering Circular of the Borrower, dated April 28, 2005 and otherwise
reasonably satisfactory to the Initial Lenders. The Administrative Agent shall have received copies of the Senior Subordinated Debt Documents, certified by an executive officer or a Financial Officer as true and correct. 
  
 (j) The Borrower shall have received gross cash proceeds of
not less than $350,000,000 from the issuance of the Senior Unsecured Debt. The terms and conditions of the Senior Unsecured Debt and the provisions of the Senior Unsecured Debt Documents shall be consistent in all material respects with the Offering
Circular of the Borrower, dated April 28, 2005 and otherwise reasonably satisfactory to the Initial Lenders. The Administrative Agent shall have received copies of the Senior Unsecured Debt Documents, certified by an executive officer or a
Financial Officer as true and correct. 
  
 (k)
The Acquisition shall have been consummated or shall be consummated simultaneously with the initial funding of the Loans on the Effective Date in all material respects in accordance with applicable laws and the terms of the Acquisition Agreement and
any documents related thereto, without any amendment to or waiver or other modification of any material term or condition in the Acquisition Agreement or any documents related thereto not approved by the Initial Lenders. The Administrative Agent
shall have received copies of the Acquisition Agreement, the Verizon Agreements and any documents related thereto and all material certificates, opinions and other documents delivered thereunder, certified by an executive officer or a Financial
Officer as true and correct. The Initial Lenders shall be satisfied in all respects with the terms of any agreements (including definitive documentation) to be entered into in connection with the Transactions (other than the Acquisition Agreement
and the Verizon Agreements) and shall be reasonably satisfied with any amendment, change or modification to (x) the Acquisition Agreement or any Verizon Agreement entered into on or about the time of execution of the Acquisition Agreement, in
each case since the time of its execution and (y) any other Verizon Agreement, to the extent executed in a form different from that included as 

  

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an exhibit to, or otherwise specifically contemplated by, the Acquisition Agreement as initially executed. 
  
 (l) The Administrative Agent shall have received a
certificate from an executive officer or a Financial Officer of the Borrower, in form and substance reasonably satisfactory to the Administrative Agent, with respect to the solvency of the Loan Parties on a consolidated basis on the Effective Date
after giving effect to the Transactions. 
  
 (m)
After giving effect to the Transactions to be consummated on the Effective Date, Holdings, the Borrower and the Subsidiaries shall have outstanding no Indebtedness or preferred Equity Interests that would be required to be reflected on a balance
sheet prepared in accordance with GAAP other than (i) the Loans, (ii) the Senior Subordinated Debt, (iii) the Senior Unsecured Debt, (iv) the Debentures and (v) the Indebtedness set forth in Schedule 6.01. 

 
 (n) All consents and approvals required to be obtained
from any Governmental Authority (including but not limited to state public utility commissions) and all consents required by the Acquisition Agreement to be obtained from third parties in connection with the Transactions shall have been obtained to
the extent such consents or approvals are required under applicable laws or agreements or otherwise, and all applicable regulatory appeal periods shall have expired. The Administrative Agent shall have received a certificate of an executive officer
or a Financial Officer of the Borrower, certifying that there is no claim, action or proceeding pending or, to the knowledge of the Borrower, threatened, by any Governmental Authority to enjoin, restrain, prohibit or impose materially burdensome
conditions on the Transactions. 
  
 (o) The
credit facilities under this Agreement shall have been rated by S&P and Moody’s. 
  
 The Administrative Agent shall notify the Borrower and the Lenders of the Effective Date, and such notice shall be conclusive and binding. 
  
 SECTION 4.02. Each Credit Event. The obligation of each Lender to make a Loan on any date, and of the Issuing Bank to
issue, increase, renew or extend any Letter of Credit on any date, is subject to receipt of the request therefor in accordance herewith and to the satisfaction of the following conditions: 
  
 (a) The representations and warranties of each Loan Party
set forth in the Loan Documents shall be true and correct in all material respects on and as of the date such Loan is made or the date of issuance, increase, renewal or extension of such Letter of Credit, as applicable, except to the extent such
representations and warranties expressly relate to an earlier date (in which 

  

 72 

 
case such representations and warranties shall be true and correct in all material respects on and as of such earlier date). 
  
 (b) At the time of and immediately after giving effect to
such Borrowing or the issuance, increase, renewal or extension of such Letter of Credit, as applicable, no Default shall have occurred and be continuing. 
  
 Each funding of Loans and each issuance, increase, renewal or extension of a Letter of Credit shall be deemed to constitute a representation and warranty by Holdings and
the Borrower on the date thereof as to the matters specified in paragraphs (a) and (b) of this Section. 
  
 ARTICLE V 
  
 Affirmative Covenants 
  
 Until the Commitments
have expired or been terminated and the principal of and interest on each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit shall have expired or terminated and all LC Disbursements shall have been
reimbursed, each of Holdings and the Borrower covenants and agrees with the Lenders that: 
  
 SECTION 5.01. Financial Statements and Other Information. The Borrower will furnish to the Administrative Agent and each Lender: 
  
 (a) no later than the earlier of (i) 10 days after the date that the Borrower is or would be
required to file a report on Form 10-K with the Securities and Exchange Commission in compliance with the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (whether or not the Borrower is subject
to such reporting requirements), and (ii) 100 days after the end of each fiscal year of the Borrower, the Borrower’s audited consolidated balance sheet and related statements of operations, stockholders’ equity and cash flows as
of the end of and for such year, setting forth in each case in comparative form the figures for the previous fiscal year, all reported on by Ernst & Young LLP or another independent registered public accounting firm of recognized national
standing (without a “going concern” or like qualification or exception and without any qualification or exception as to the scope of such audit) to the effect that such consolidated financial statements present fairly in all material
respects the financial condition and results of operations of the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied; 
  
 (b) no later than the earlier of (i) 10 days after the date that the Borrower is or would be
required to file a report on Form 10-Q with the Securities and Exchange Commission in compliance with the reporting 

  

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requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended (whether or not the Borrower is subject to such reporting
requirements), and (ii) 55 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, the Borrower’s unaudited consolidated balance sheet and related statements of operations, stockholders’
equity and cash flows as of the end of and for such fiscal quarter and the then elapsed portion of the fiscal year, setting forth in each case in comparative form the figures for the corresponding period or periods of (or, in the case of the balance
sheet, as of the end of) the previous fiscal year, all certified by a Financial Officer as presenting fairly in all material respects the financial condition and results of operations of the Borrower and its Subsidiaries on a consolidated basis in
accordance with GAAP consistently applied, subject to normal year-end audit adjustments and the absence of footnotes; 
  
 (c) within 30 days after the end of each fiscal quarter of the Borrower ending prior to June 30, 2007, a statement, certified by
a Financial Officer, setting forth the number of residential and business access lines of the Borrower and its Subsidiaries as of the end of such fiscal quarter; 
  
 (d) concurrently with any delivery of financial statements under clause (a) or (b) above, a
certificate of a Financial Officer of the Borrower (i) certifying as to whether a Default has occurred and, if a Default has occurred, specifying the details thereof and any action taken or proposed to be taken with respect thereto,
(ii) setting forth reasonably detailed calculations demonstrating compliance with the Financial Covenants, (iii) stating whether any change in GAAP or in the application thereof has occurred since the date of the audited financial
statements referred to in Section 3.04 and, if any such change has occurred, specifying the effect of such change on the financial statements accompanying such certificate, (iv) identifying any Subsidiary formed or acquired since the end
of the previous fiscal quarter, (v) identifying any parcels of real property or improvements thereto with a value exceeding $2,000,000 that have been acquired by any Loan Party since the end of the previous fiscal quarter, (vi) identifying
any changes of the type described in Section 5.03(a) that have not been previously reported by the Borrower, (vii) identifying any Permitted Acquisition or other acquisitions of going concerns that have been consummated since the end of
the previous fiscal quarter, including the date on which each such acquisition was consummated and the consideration therefor, (viii) identifying any material Intellectual Property (as defined in the Collateral Agreement and the Shared
Collateral Agreement) with respect to which a notice is required to be delivered under the Collateral Agreement or the Shared Collateral Agreement and has not been previously delivered, (ix) identifying any Prepayment Events that have occurred
since the end of the previous fiscal quarter and setting forth a reasonably detailed calculation of the Net Proceeds received from any such Prepayment Events, and (x) identifying (and certifying as to the nonrecurring nature of) any 

  

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non-recurring charges or expenses (which certification shall be conclusive) added back in the calculation of Consolidated EBITDA pursuant to
clause (vii) of the definition thereof for the period of four consecutive quarters most recently ended and attaching a schedule in reasonable detail of such charges and expenses; 
  
 (e) concurrently with any delivery of financial statements under clause (a) above, a certificate
of the accounting firm that reported on such financial statements stating whether they obtained knowledge during the course of their examination of such financial statements of any Default (which certificate may be limited to the extent required by
accounting rules, guidelines or practice) provided that the Borrower shall not be required to deliver such a certificate if, after using commercially reasonable efforts, the Borrower is unable to obtain such a certificate; 
  
 (f) within 90 days after the commencement of each
fiscal year of the Borrower, a detailed consolidated budget for such fiscal year (broken down by quarter and including (i) a projected consolidated balance sheet and related statements of projected operations and cash flow as of the end of and
for such fiscal year and setting forth the assumptions used for purposes of preparing such budget and (ii) other information reasonably requested by the Administrative Agent) and, promptly when available, any significant revisions of such
budget; 
  
 (g) promptly after the same become
publicly available, copies of all periodic and current reports, proxy statements and registration statements filed by Holdings, the Borrower or any Subsidiary with the Securities and Exchange Commission, or any Governmental Authority succeeding to
any or all of the functions of said Commission, or with any national securities exchange, or in the event Holdings becomes a publicly traded company, distributed by Holdings to its shareholders generally; and 
  
 (h) promptly following any request therefor, such other
information regarding the operations, business affairs and financial condition of Holdings, the Borrower or any Subsidiary, or compliance with the terms of any Loan Document, as the Administrative Agent (including on behalf of any Lender) may
reasonably request. 
  
 SECTION 5.02. Notices of Material
Events. The Borrower will furnish to the Administrative Agent and each Lender written notice of the following promptly after any Financial Officer or executive officer of the Borrower obtains actual knowledge thereof: 
  
 (a) the occurrence of any Default; 
  
 (b) the filing or commencement of any action, suit or
proceeding by or before any arbitrator or Governmental Authority (including the FCC or 

  

 75 

 
HPUC) against or affecting Holdings, the Borrower or any Subsidiary thereof that involves a reasonable possibility of an adverse determination and which, if
adversely determined, would reasonably be expected to result in a Material Adverse Effect; 
  
 (c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that have occurred, would reasonably be expected
to result in a Material Adverse Effect; and 
  
 (d) any other development that results in, or would reasonably be expected to result in, a Material Adverse Effect. 
  
 Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer or other executive officer of the Borrower setting forth the details
of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto. 
  
 SECTION 5.03. Information Regarding Collateral. (a) The Borrower will furnish to the Administrative Agent prompt written notice of any change
(i) in any Loan Party’s legal name, as reflected in its organization documents, (ii) in any Loan Party’s jurisdiction of organization or corporate structure and (iii) in any Loan Party’s identity, Federal Taxpayer
Identification Number or organization number, if any, assigned by the jurisdiction of its organization. The Borrower agrees not to effect or permit any change referred to in clauses (i) through (iii) of the preceding sentence unless all
filings have been made, or will have been made within any statutory period, under the Uniform Commercial Code or otherwise that are required in order for the Agent to continue at all times following such change to have a valid, legal and perfected
security interest in all the Collateral for the benefit of the Secured Parties. The Borrower also agrees promptly to notify the Administrative Agent if any damage to or destruction of Collateral that is uninsured and has a fair market value
exceeding $1,000,000 occurs. 
  
 (b) Upon the request of the
Administrative Agent, the Borrower shall promptly deliver to the Administrative Agent an updated Perfection Certificate certified by a Financial Officer of the Borrower reflecting all changes since the date of the Perfection Certificate delivered on
the Effective Date or the date of the most recent certificate delivered pursuant to this Section. 
  
 SECTION 5.04. Existence; Conduct of Business. Each of Holdings and the Borrower will, and will the Borrower cause each of its Subsidiaries to, do
or cause to be done all things necessary to preserve, renew and keep in full force and effect its legal existence and the rights, contracts, FCC Licenses, Operating Licenses, other licenses, permits, privileges, franchises, patents, copyrights,
trademarks and trade names, except to the extent that the failure to do so (other than in the case of maintaining the Borrower’s existence) would not reasonably be expected to result in a Material Adverse Effect; provided that the
foregoing shall not prohibit any merger, consolidation, liquidation or dissolution permitted under Section 6.03 or any sale of assets permitted under Section 6.05. 
  

 76 

 SECTION 5.05. Payment of Obligations. The Borrower will, and will cause each of its Subsidiaries
to, pay its material Indebtedness and other material obligations, including material Tax liabilities, before the same shall become delinquent or in default, except where (a) the validity or amount thereof is being contested in good faith by
appropriate proceedings and (b) the Borrower or such Subsidiary has set aside on its books adequate reserves with respect thereto in accordance with GAAP. 
  

SECTION 5.06. Maintenance of Properties. Except as would not reasonably be expected, individually or in the aggregate, to have a Material
Adverse Effect, the Borrower will, and will cause each of its Subsidiaries to, keep and maintain all property in good working order and condition, ordinary wear and tear excepted. 
  
 SECTION 5.07. Insurance. The Borrower will, and will cause each of its Subsidiaries to, maintain, with financially
sound and reputable insurance companies (a) insurance in such amounts and against such risks as are customarily maintained by companies of established repute engaged in the same or similar businesses operating in the same or similar locations
and (b) all insurance required to be maintained pursuant to the Security Documents. The Borrower will furnish to the Lenders, upon the reasonable request of the Administrative Agent, information in reasonable detail as to the insurance so
maintained. 
  
 SECTION 5.08. Books and Records; Inspection and
Audit Rights. The Borrower will, and will cause each of its Subsidiaries to, keep books of record and account in accordance with GAAP. The Borrower will, and will cause each of its Subsidiaries to, permit any representatives designated by the
Administrative Agent or any Lender, upon reasonable prior notice, to visit and inspect its properties, to examine and make extracts from its books and records, and to discuss its affairs, finances and condition with its officers and independent
accountants, all at such reasonable times and as often as reasonably requested (subject to confidentiality requirements imposed by law or agreements); provided that unless an Event of Default shall have occurred and be continuing, visits by
Lenders will be made jointly and not more often than once each fiscal year. 
  
 SECTION 5.09. Compliance with Laws. The Borrower will, and will cause each of its Subsidiaries to, comply with all laws, rules, regulations, including the Communications Act, HPUC regulations, other
communications laws and Environmental Laws, and orders of any Governmental Authority applicable to it, its operations or its property, except where the failure to do so, individually or in the aggregate, would not reasonably be expected to result in
a Material Adverse Effect. 
  
 SECTION 5.10. Use of Proceeds
and Letters of Credit. The proceeds of the Tranche B Term Loans borrowed on the Effective Date, together with the proceeds of the Revolving Loans or Swingline Loans borrowed on the Effective Date, the Equity Financing, the Senior
Subordinated Debt and the Senior Unsecured Debt, will be used only for (a) the payment of the purchase price payable under the Acquisition Agreement as consideration for the Acquisition, (b) the payment of fees and expenses payable in
connection with the Transactions and (c) working capital in an amount not to exceed 

  

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$5,000,000. The proceeds of the Tranche A Term Loans will be used solely to repay or otherwise acquire or retire the 7% Debentures and the 7.375%
Debentures and any accrued interest and fees and expenses in connection therewith. The proceeds of the Revolving Loans and Swingline Loans borrowed after the Effective Date will be used only for general corporate purposes of the Borrower and its
Subsidiaries. No part of the proceeds of any Loan will be used, whether directly or indirectly, for any purpose that entails a violation of any of the Regulations of the Board, including Regulations U and X. Letters of Credit will be issued
only to support obligations of the Borrower and its Subsidiaries incurred for general corporate purposes. 
  
 SECTION 5.11. Additional Subsidiaries. If any additional Subsidiary is formed or acquired after the Effective Date (if it is a Subsidiary Loan
Party), the Borrower will, within five Business Days after such Subsidiary is formed or acquired, notify the Administrative Agent thereof and, within 20 Business Days after such Subsidiary is formed or acquired or such longer period as the
Administrative Agent shall agree, cause the Collateral and Guarantee Requirement to be satisfied with respect to such Subsidiary and with respect to any Equity Interest in or Indebtedness of such Subsidiary owned by or on behalf of any Loan Party.

  
 SECTION 5.12. Further Assurances. (a) Each of
Holdings and the Borrower will, and the Borrower will cause each Subsidiary Loan Party to, execute any and all further documents, financing statements, agreements and instruments, and take all such further actions (including the filing and recording
of financing statements, fixture filings, Mortgages and other documents), that may be required under any applicable law, or that the Administrative Agent or the Required Lenders may reasonably request, to cause the Collateral and Guarantee
Requirement to be and remain satisfied, all at the expense of the Loan Parties. Holdings and the Borrower also agree to provide to the Administrative Agent, from time to time upon reasonable request, evidence reasonably satisfactory to the
Administrative Agent as to the perfection and priority of the Liens created or intended to be created by the Security Documents. 
  
 (b) If any material asset (including any real property or improvements thereto or any interest therein) that has an individual fair market value of more
than $2,000,000 is acquired by the Borrower or any Subsidiary Loan Party after the Effective Date or owned by an entity at the time it becomes a Subsidiary Loan Party (in each case other than assets constituting Collateral under the Collateral
Agreement or the Shared Collateral Agreement that become subject to the Lien of the Collateral Agreement or the Shared Collateral Agreement upon acquisition thereof), the Borrower will notify the Administrative Agent thereof, and, if requested by
the Administrative Agent or the Required Lenders, the Borrower will cause such asset to be subjected to a Lien securing the Obligations and will take, and cause the Subsidiary Loan Parties to take, such actions as shall be necessary or reasonably
requested by the Administrative Agent to grant and perfect such Liens, including actions described in paragraph (a) of this Section, all at the expense of the Loan Parties. 
  
 (c) The Collateral and Guarantee Requirement and the other provisions of this Section 5.12 need not be satisfied with
respect to (i) real properties owned by the 

  

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Borrower or any Subsidiary with an individual fair market value (including fixtures and improvements) that is less than $1,000,000 in the case of such
properties owned on the Effective Date and $2,000,000 in the case of properties acquired after the Effective Date, (ii) any real property held by the Borrower or any Subsidiary as a lessee under a lease, (iii) any Equity Interests acquired
after the Effective Date in accordance with this Agreement if, and to the extent that, and for so long as (A) doing so would violate applicable law or a contractual obligation binding on such Equity Interests and (B) such law or obligation
existed at the time of the acquisition thereof and was not created or made binding on such Equity Interests in contemplation of or in connection with the acquisition of such Subsidiary, (iv) any assets acquired after the Effective Date, to the
extent that, and for so long as, taking such actions would violate a contractual obligation (it being understood that a Uniform Commercial Code filing does not in and of itself constitute a contractual obligation) binding on such assets that existed
at the time of the acquisition thereof and was not created or made binding on such assets in contemplation or in connection with the acquisition of such assets (except in the case of assets acquired with Indebtedness permitted pursuant to
Section 6.01(a)(vii) that is secured by a Lien permitted pursuant to Section 6.02(a)(v)); provided that, upon the reasonable request of the Administrative Agent, the Borrower shall, and shall cause any applicable Subsidiary to, use
commercially reasonable efforts to have waived or eliminated any contractual obligation of the types described in clauses (iii) and (iv) above and (v) other assets with respect to which the Administrative Agent determines that the
cost or impracticability of including such assets as Collateral would be excessive in relation to the benefits to the Secured Parties. 
  
 (d) In the event that after the Effective Date, Holdings, the Borrower or any Subsidiary acquires an FCC License to provide Commercial Mobile Radio
Service (as defined in the Communications Act and the FCC’s rules), Holdings and the Borrower will (x) either (i) cause such FCC License to be acquired and held by a License Subsidiary or (ii) within 30 days of the date such FCC
License is acquired, cause such FCC License to be transferred to and held by a License Subsidiary and (y) ensure that each License Subsidiary is at all times party to a Special Purpose Subsidiary Funding Agreement that has been duly authorized,
executed and delivered by Holdings, the Borrower and such License Subsidiary and is in full force and effect, and an accurate and complete executed copy of which has been delivered to the Administrative Agent. 
  
 SECTION 5.13. Designation of Unrestricted Subsidiaries. The
Borrower’s board of directors may, at any time, designate any Subsidiary that is acquired or created after the Effective Date as an Unrestricted Subsidiary by written notice to the Administrative Agent; provided that the Borrower shall only be
permitted to so designate a new Unrestricted Subsidiary after the Effective Date and so long as (a) no Default or Event of Default exists or would result therefrom, (b) such Subsidiary does not own any capital stock or Indebtedness of, or
own or hold a Lien on any property of, the Borrower or any other Subsidiary that is not a subsidiary of the Subsidiary to be so designated and (c) such Unrestricted Subsidiary shall be capitalized (to the extent capitalized by the Borrower or
any of its Subsidiaries) through Investments permitted by, and in compliance with, Section 6.04(l), (p) or (t), with any assets owned by such Unrestricted Subsidiary at the time of the initial designation thereof to be treated as
Investments pursuant to 

  

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Section 6.04(l), (p) or (t); provided that at the time of the initial Investment by the Borrower or any of its Subsidiaries in such Subsidiary, the
Borrower shall designate such entity as an Unrestricted Subsidiary in a written notice to the Administrative Agent. The Borrower may designate any Unrestricted Subsidiary to be a Subsidiary for purposes of this Agreement (each, a “Subsidiary
Redesignation”); provided that (i) such Unrestricted Subsidiary, both before and after giving effect to such designation, shall be a wholly owned Subsidiary of the Borrower, (ii) no Default or Event of Default then exists or would
occur as a consequence of any such Subsidiary Redesignation, (iii) calculations are made by the Borrower of Pro Forma Compliance with the Financial Covenants for the relevant period, as if the respective Subsidiary Redesignation (as well as all
other Subsidiary Redesignations theretofore consummated after the first day of such period) had occurred on the first day of such period, and such calculations shall show that such Financial Covenants would have been complied with if the Subsidiary
Redesignation had occurred on the first day of such period (for this purpose, if the first day of the respective period occurs prior to the Effective Date, calculated as if the Financial Covenants had been applicable from the first day of such
period), (iv) based on good faith projections prepared by the Borrower for the period from the date of the respective Subsidiary Redesignation to the date that is one year thereafter, the level of financial performance measured by the Financial
Covenants shall be better than or equal to such level as would be required to provide that no Default or Event of Default would exist under the Financial Covenants through the date that is one year from the date of the respective Subsidiary
Redesignation, (v) all representations and warranties contained herein and in the other Loan Documents shall be true and correct in all material respects with the same effect as though such representations and warranties had been made on and as
of the date of such Subsidiary Redesignation (both before and after giving effect thereto), unless stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as
of such earlier date, (vi) the Borrower shall have delivered to the Administrative Agent an officer’s certificate executed by a Financial Officer, certifying to the best of such officer’s knowledge, compliance with the requirements of
preceding clauses (i) through (v), inclusive, and containing the calculations required by the preceding clauses (iii) and (iv), and (vii) any Unrestricted Subsidiary subject to a Subsidiary Redesignation may not thereafter be
designated as an Unrestricted Subsidiary. 
  

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 ARTICLE VI 
  
 Negative Covenants 
  
 Until the Commitments have expired or terminated and the principal of and interest on each Loan and all fees payable hereunder have been paid in full and
all Letters of Credit have expired or terminated and all LC Disbursements shall have been reimbursed, each of Holdings and the Borrower covenants and agrees with the Lenders that: 
  
 SECTION 6.01. Indebtedness; Certain Equity Securities. (a) The Borrower will not, and will not permit any
Subsidiary to, create, incur, assume or permit to exist any Indebtedness or any Attributable Debt, except: 
  
 (i) Indebtedness created under the Loan Documents and any Permitted Subordinated Indebtedness or other unsecured Indebtedness (and
Guarantees thereof) of the Borrower or its Subsidiaries in each case to the extent the Net Proceeds thereof are used to refinance Indebtedness created under the Loan Documents; 
  
 (ii) the Senior Subordinated Debt, the Senior Unsecured Debt and, in each case, Refinancing Indebtedness in
respect thereof; 
  
 (iii) the Debentures;

  
 (iv) Indebtedness other than the Debentures
existing on the date hereof and set forth in Schedule 6.01 and Refinancing Indebtedness in respect thereof; 
  
 (v) Indebtedness of the Borrower to any Subsidiary and of any Subsidiary to the Borrower or any other Subsidiary; provided that
(i) any such Indebtedness owed by a Loan Party is subordinated to the Obligations pursuant to the Affiliate Subordination Agreement and (ii) Indebtedness of any Subsidiary that is not a Loan Party to the Borrower or any Subsidiary Loan
Party shall be subject to Section 6.04; 
  
 (vi) Guarantees by the Borrower of Indebtedness of any Subsidiary and by any Subsidiary of Indebtedness of any other Subsidiary; provided that Guarantees by the Borrower or any Subsidiary Loan Party of Indebtedness of any Subsidiary
that is not a Loan Party shall be subject to Section 6.04; 
  
 (vii) Indebtedness and Attributable Debt of the Borrower or any Subsidiary incurred to finance the acquisition, construction or improvement of any fixed or capital assets, including Capital Lease Obligations and any
Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on any such assets prior to the acquisition thereof, and extensions, renewals, refinancings and replacements of any such Indebtedness that do not
increase the outstanding principal amount thereof (other than by an amount not greater than fees and expenses, including premium and defeasance costs, associated therewith) or result in a decreased average weighted life thereof; provided that
(1) such Indebtedness or Attributable Debt is incurred prior to or within 180 days after such acquisition or the completion of such construction or improvement and (2) the aggregate principal amount of Indebtedness and Attributable
Debt permitted by this clause (vii) shall not at any time exceed (x) the greater of $75,000,000 and 4% of Consolidated Total Assets minus (y) the aggregate principal amount of Indebtedness outstanding pursuant to
Section 6.01(a)(viii); 
  
 (viii)
Indebtedness of any Person that becomes a Subsidiary after the date hereof; provided that (A) such acquired Indebtedness exists at the time such 

  

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Person becomes a Subsidiary and is not created in contemplation of or in connection with such Person becoming a Subsidiary (except to the extent such
acquired Indebtedness refinanced other Indebtedness to facilitate such entity becoming a Subsidiary) and (B) the aggregate principal amount of Indebtedness permitted by this clause (viii) shall not at any time exceed (x) the greater
of $75,000,000 and 4% of Consolidated Total Assets minus (y) the aggregate principal amount of Indebtedness outstanding pursuant to Section 6.01(a)(vii); 
  
 (ix) Indebtedness owed to (including obligations in respect of letters of credit or bank guarantees or
similar instruments for the benefit of) any person providing workers’ compensation, health, disability or other employee benefits or property, casualty or liability insurance to the Borrower or any Subsidiary, pursuant to reimbursement or
indemnification obligations to such person, provided that upon the incurrence of Indebtedness with respect to reimbursement obligations regarding workers’ compensation claims, such obligations are reimbursed not later than 30 days
following such incurrence; 
  
 (x) Indebtedness
arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business or other cash management services in the ordinary course of business,
provided that (i) such Indebtedness (other than credit or purchase cards) is extinguished within ten Business Days of its incurrence and (ii) such Indebtedness in respect of credit or purchase cards is extinguished within 60 days from
its incurrence; 
  
 (xi) Indebtedness arising
from agreements of the Borrower or any Subsidiary providing for indemnification, adjustment of purchase or acquisition price or similar obligations, in each case, incurred or assumed in connection with the disposition of any business, assets or a
Subsidiary permitted hereunder, other than Guarantees of Indebtedness incurred by any person acquiring all or any portion of such business, assets or a Subsidiary for the purpose of financing such acquisition; 
  
 (xii) Indebtedness of Foreign Subsidiaries in an aggregate
amount outstanding at any time not to exceed 2.0% of Consolidated Total Assets at such time; 
  
 (xiii) Third Party Interests issued by Securitization Vehicles in Securitizations permitted by Section 6.05, and Indebtedness
represented by such Third Party Interests and Indebtedness consisting of Standard Securitization Undertakings, provided that the aggregate amount of such Third Party Interests shall not exceed $100,000,000 at any time outstanding; 
  
 (xiv) Indebtedness in respect of performance bonds, bid
bonds, appeal bonds, surety bonds, financial assurances and completion guarantees and similar obligations, in each case provided in the ordinary course of business, including 

  

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those incurred to secure health, safety and environmental obligations in the ordinary course of business; 
  
 (xv) all premium (if any), interest (including post-petition
interest), fees, expenses, charges and additional or contingent interest on obligations described in paragraphs (i) through (xiv) above and paragraph (xvi) below; 
  
 (xvi) cash management obligations and other Indebtedness in respect of netting services, overdraft
protection and similar arrangements, in each case, in connection with cash management and deposit accounts; 
  
 (xvii) other Indebtedness in an aggregate principal amount not exceeding the greater of $75,000,000 and 4% of Consolidated Total Assets;

  
 (xviii) Permitted Subordinated Indebtedness
(and any related Permitted Subordinated Guarantee) and any other unsecured Indebtedness, in each case without any limitation as to amount so long as the Borrower and the Subsidiaries are in compliance, on a pro forma basis after giving
effect to the incurrence of such Indebtedness, with the applicable Financial Covenants, and the Net Proceeds of such Indebtedness are applied to prepay Loans to the extent required by Section 2.11(c); and 
  
 (xix) the Sponsor Note. 
  
 (b) The Borrower will not, nor will it permit any Subsidiary to, issue any
preferred stock or other preferred Equity Interests, other than (i) Non-Cash Pay Preferred Stock of the Borrower, issued to Holdings and pledged pursuant to the Collateral Agreement, (ii) preferred stock or other preferred Equity Interests
of a Subsidiary, issued to a Loan Party and pledged pursuant to the Collateral Agreement and (iii) Third Party Interests issued by Securitization Vehicles. 
  

(c) Notwithstanding anything to the contrary in this Section 6.01, the Borrower will not permit any License Subsidiary to incur or permit to exist
any Indebtedness other than Indebtedness permitted by Section 6.17. 
  
 SECTION 6.02. Liens. (a) The Borrower will not, and will not permit any Subsidiary to, create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or
assign or sell any income or revenues (including accounts receivable) or rights in respect of any thereof, except: 
  
 (i) Liens created under the Loan Documents (including Liens securing Indebtedness under the Debentures on a pari passu basis
with the Obligations to the extent required by the terms of the Debentures); 
  
 (ii) Permitted Encumbrances; 
  
 (iii) any Lien existing on the date hereof and set forth in Schedule 6.02 on any property or asset of the Borrower or any Subsidiary or, to the extent not listed 

  

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in such Schedule, where such property or assets have a fair market value that does not exceed $10,000,000 in the aggregate; provided that
(A) such Lien shall not apply to any other property or asset of the Borrower or any Subsidiary (other than proceeds) and (B) such Lien shall secure only those obligations which it secures on the date hereof and extensions, renewals,
refinancings and replacements thereof that do not increase the outstanding principal amount thereof or result in an earlier maturity date or decreased weighted average life thereof; 
  
 (iv) any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any
Subsidiary or existing on any property or asset of any Person that becomes a Subsidiary after the date hereof prior to the time such Person becomes a Subsidiary; provided that (A) such Lien is not created in contemplation of or in
connection with such acquisition or such Person becoming a Subsidiary, as the case may be, (B) such Lien shall not apply to any other property or assets of the Borrower or any Subsidiary (other than proceeds and after acquired property of any
acquired Subsidiary to the extent required by the terms of any Indebtedness assumed in such acquisition and permitted pursuant to Section 6.01(a)) and (C) such Lien shall secure only those obligations which it secures on the date of such
acquisition or the date such Person becomes a Subsidiary, as the case may be and extensions, renewals, refinancings and replacements thereof that do not increase the outstanding principal amount thereof (other than by an amount not in excess of fees
and expenses, including premium and defeasance costs, associated therewith) or result in a decreased average weighted life thereof; 
  
 (v) Liens on fixed or capital assets acquired, constructed or improved by the Borrower or any Subsidiary; provided that
(A) such Liens secure Indebtedness permitted by clause (vii) of Section 6.01(a) or by Section 6.06, (B) such Liens and the Indebtedness secured thereby are incurred prior to or within 180 days after such acquisition or
the completion of such construction or improvement, (C) the Indebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital assets, including transaction costs incurred in connection
therewith, and (D) such Liens shall not apply to any other property or assets of the Borrower or any Subsidiary (other than proceeds); provided that individual financings of equipment provided by a single lender may be
cross-collateralized to other financings of equipment provided solely by such lender; 
  
 (vi) Cash deposits securing any Swap Agreement entered into in connection with the Loans hereunder; 
  
 (vii) Liens not otherwise permitted by this
Section 6.02 securing obligations other than Indebtedness and involuntary Liens not otherwise permitted by this Section 6.02 securing Indebtedness, which obligations and Indebtedness are in an aggregate amount not in excess of $30,000,000
at any time outstanding; 
  
 (viii)
(a) deposits securing liability to insurance carriers under insurance or self-insurance arrangements in respect of such obligations and (b) pledges and 

  

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deposits securing liability for reimbursement or indemnification obligations of (including obligations in respect of letters of credit or bank guarantees for
the benefit of) insurance carriers providing property, casualty or liability insurance to the Borrower or any Subsidiary; 
  
 (ix) Liens disclosed by the title insurance policies delivered on or prior to the Effective Date and any replacement, extension or renewal
of any such Lien; provided that such replacement, extension or renewal Lien shall not cover any property other than the property that was subject to such Lien prior to such replacement, extension or renewal; provided, further, that the
Indebtedness and other obligations secured by such replacement, extension or renewal Lien are permitted by this Agreement; 
  
 (x) any interest or title of a lessor under any leases or subleases entered into by the Borrower or any Subsidiary in the ordinary course
of business; 
  
 (xi) Liens that are contractual
rights of set-off (a) relating to the establishment of depository relations with banks not given in connection with the issuance of Indebtedness, (b) relating to pooled deposit or sweep accounts to permit satisfaction of overdraft or
similar obligations incurred in the ordinary course of business or (c) relating to purchase orders and other agreements entered into with customers of the Borrower or any Subsidiary in the ordinary course of business; 
  
 (xii) Liens arising solely by virtue of any statutory or
common law provision relating to banker’s liens, rights of set-off or similar rights, and Liens in favor of CoBank ACB on the Borrower’s CoBank Equity Interests; 
  
 (xiii) licenses of intellectual property granted in the ordinary course of business and in a manner
consistent with past practice; 
  
 (xiv) Liens
solely on any cash earnest money deposits made by the Borrower or any of the Subsidiaries in connection with any letter of intent or purchase agreement permitted hereunder; 
  
 (xv) Liens with respect to property or assets of any Foreign Subsidiary securing Indebtedness of a Foreign
Subsidiary permitted under Section 6.01; 
  
 (xvi) Liens arising from precautionary UCC financing statements in connection with operating leases; 
  
 (xvii) Liens in favor of co-venturors in Equity Interests in joint ventures securing obligations of such joint venture; 
  
 (xviii) Liens on securities that are the subject of
repurchase agreements constituting Permitted Investments under clause (d) of the definition thereof; 
  

 85 

 (xix) Liens in favor of any Securitization Vehicle or any collateral agent on
Securitization Assets transferred or purported to be transferred to such Securitization Vehicle in connection with Securitizations permitted by Section 6.05; 
  
 (xx) Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of
customs duties in connection with the importation of goods; 
  
 (xxi) the prior rights of consignees and their lenders under consignment arrangements entered into in the ordinary course of business; 
  
 (xxii) agreements to subordinate any interest of the Borrower or any Subsidiary in any accounts receivable
or other proceeds arising from inventory consigned by the Borrower or any of its Subsidiaries pursuant to an agreement entered into in the ordinary course of business; and 
  
 (xxiii) other Liens with respect to property or assets of the Borrower or any Subsidiary securing
Indebtedness or other obligations not at any time in excess of $50,000,000; 
  
 (b) No License Subsidiary will create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell any income or revenues (including accounts receivable)
or rights in respect thereof, except Liens created under the Collateral Agreement or the Shared Collateral Agreement and Permitted Encumbrances. 
  
 SECTION 6.03. Fundamental Changes. (a) The Borrower will not, and will not permit any Subsidiary to, merge into or consolidate with any other
Person, or permit any other Person to merge into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Event of Default shall have occurred and be continuing,
(i) any Subsidiary (other than a License Subsidiary) may merge into the Borrower in a transaction in which the Borrower is the surviving corporation, (ii) any Subsidiary (other than a License Subsidiary) may merge into any Subsidiary in a
transaction in which the surviving entity is a wholly-owned Subsidiary and, if any party to such merger is a Subsidiary Loan Party, a Subsidiary Loan Party, (iii) any Subsidiary (other than a License Subsidiary) may merge or consolidate with
any other Person in order to effect a Permitted Acquisition and (iv) any Subsidiary (other than a License Subsidiary) may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best
interests of the Borrower and is not materially disadvantageous to the Lenders; provided that any such merger involving a Person that is not a wholly-owned Subsidiary immediately prior to such merger shall not be permitted unless also
permitted by Section 6.04. 
  
 (b) Holdings will not engage
at any time in any business or business activity other than (i) ownership and acquisition of Equity Interests in the Borrower, together with activities directly related thereto, (ii) performance of its obligations under 

  

 86 

 
and in connection with the Loan Documents, the Acquisition Agreement, the Verizon Agreements, the Senior Subordinated Debt Documents and the Senior Unsecured
Debt Documents (and Refinancing Indebtedness in respect thereof) and the other agreements contemplated hereby and thereby, (iii) actions incidental to the consummation of the Transactions, (iv) actions required by law to maintain its
existence, (v) the payment of dividends and taxes, (vi) the issuance of and the performance of obligations in respect of its Equity Interests and Indebtedness and (vii) activities incidental to its maintenance and continuance and to
the foregoing activities. Notwithstanding anything to the contrary contained in herein, (i) Holdings shall at all times own directly 100% of the Equity Interests of the Borrower and (ii) Holdings shall not sell, dispose of, grant a Lien on
or otherwise transfer such Equity Interests in the Borrower (other than pursuant to the Loan Documents). 
  
 SECTION 6.04. Investments, Loans, Advances, Guarantees and Acquisitions. The Borrower will not, and will not permit any of its Subsidiaries to,
make, purchase, hold or acquire (including pursuant to any merger with any Person that was not a wholly owned Subsidiary prior to such merger) any Investment, except: 
  
 (a) the Acquisition; 
  
 (b) Permitted Investments and Investments that were Permitted Investments when made; 
  
 (c) Investments existing on, or contractually committed as
of, the date hereof and set forth on Schedule 6.04; 
  
 (d) Investments by the Borrower and its Subsidiaries in Equity Interests in (i) Subsidiaries that are Subsidiary Loan Parties immediately prior to the time of such Investments and (ii) Foreign Subsidiaries; provided that
the aggregate amount of investments by Loan Parties in, loans and advances by Loan Parties to, and Guarantees by Loan Parties of Indebtedness of, Subsidiaries that are not Loan Parties (including all such investments, loans, advances and Guarantees
existing on the Effective Date) shall not at any time exceed the sum of (i) $40,000,000 plus (ii) an amount equal to the Borrower’s Portion of Excess Cash Flow minus the cumulative aggregate amount of Designated Excess Cash Flow
Expenditures other than pursuant to this clause (d); 
  
 (e) loans or advances made by the Borrower to any Subsidiary and made by any Subsidiary to the Borrower or any other Subsidiary; provided that (A) any such loans and advances made to a Loan Party shall be
subordinated to the Obligations pursuant to the Affiliate Subordination Agreement and shall be evidenced by a promissory note pledged pursuant to the Collateral Agreement or the Shared Collateral Agreement, as the case may be, and (B) the
amount of such loans and advances made by Loan Parties to Subsidiaries that are not Loan Parties shall be subject to the limitation set forth in clause (d) above; 
  

 87 

 (f) Guarantees constituting Indebtedness permitted by Section 6.01; provided
that (i) a Subsidiary shall not Guarantee either the Senior Subordinated Debt or the Senior Unsecured Debt unless (A) such Subsidiary also has Guaranteed the Obligations pursuant to the Collateral Agreement or the Shared Collateral
Agreement, as the case may be, (B) such Guarantee of the Senior Subordinated Debt is subordinated to such Guarantee of the Obligations on terms no less favorable to the Lenders than the subordination provisions of the Senior Subordinated Debt
and (C) such Guarantee of the Senior Subordinated Debt and Senior Unsecured Debt provides for the release and termination thereof, without action by any party, upon any release and termination of such Guarantee of the Obligations, and
(ii) the aggregate principal amount of Indebtedness of Subsidiaries that are not Loan Parties that is Guaranteed by any Loan Party shall be subject to the limitation set forth in clause (d) above; 
  
 (g) Permitted Acquisitions; 
  
 (h) Investments (including debt obligations and equity
securities) received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes with, customers and suppliers, in each case in the ordinary course of business; 
  
 (i) accounts receivable, security deposits and prepayments
arising and extensions of trade credit in the ordinary course of business and any assets and securities received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary to prevent
or limit loss and any prepayments and other credits to suppliers in the ordinary course of business; 
  
 (j) Investments consisting of non-cash consideration received in respect of sales, transfers or other dispositions of assets to the extent
permitted by Section 6.05; 
  
 (k) Swap
Agreements entered into in compliance with Section 6.07; 
  
 (l) other Investments by the Borrower or any Subsidiary, including investments in Unrestricted Subsidiaries, in an aggregate amount not to exceed at any time the sum of (i) the greater of $40,000,000 and 2.5% of
Consolidated Total Assets plus (ii) the Borrower’s Portion of Excess Cash Flow minus the cumulative aggregate amount of Designated Excess Cash Flow Expenditures made other than pursuant to this clause (l); 
  
 (m) Investments of a Subsidiary acquired after the Effective
Date or of a corporation merged into the Borrower or merged into or consolidated with a Subsidiary in accordance with Section 6.03 after the Effective Date to the extent that such Investments were not made in contemplation of or in 

  

 88 

 
connection with such acquisition, merger or consolidation and were in existence on the date of such acquisition, merger or consolidation; 
  
 (n) acquisitions by the Borrower of obligations of one or
more officers or other employees of Holdings, the Borrower or its Subsidiaries in connection with such officer’s or employee’s acquisition of Equity Interests of Holdings, so long as no cash is actually advanced by the Borrower or any of
the Subsidiaries to such officers or employees in connection with the acquisition of any such obligations; 
  
 (o) Guarantees by the Borrower or any Subsidiary of operating leases (other than Capital Lease Obligations) or of other obligations that
do not constitute Indebtedness, in each case entered into by the Borrower or any Subsidiary in the ordinary course of business; 
  
 (p) any Investment by the Borrower or any Subsidiary made with Eligible Equity Proceeds that have not been applied to other Eligible
Equity Proceeds Uses, provided that such Investment is made not later than 270 days after the receipt of such Eligible Equity Proceeds by the Borrower; 
  
 (q) loans and advances by the Borrower and any of its Subsidiaries to their employees in the ordinary course
of business and for bona fide business purposes in an aggregate amount at any time outstanding not in excess of $10,000,000 and advances of payroll payments and expenses to employees in the ordinary course of business; 
  
 (r) Investments resulting from pledges and deposits referred
to in Section 6.02(a)(ii) and 6.02(a)(viii); 
  
 (s) Investments consisting of Sellers’ Retained Interests in Securitizations permitted by Section 6.05; 
  
 (t) any Investment by the Borrower or any Subsidiary made with Below Threshold Asset Disposition Proceeds that have not been applied to
other Below Threshold Asset Disposition Proceeds Uses; and 
  
 (u) the Borrower’s Investments in CoBank Equity Interests. 
  
 SECTION 6.05. Asset Sales. The Borrower will not, and will not permit any of its Subsidiaries to, sell, transfer, lease or otherwise dispose of any
asset, including any Equity Interest owned by it and any sale of Securitization Assets in connection with a Securitization, nor will the Borrower permit any of it Subsidiaries to issue any additional Equity Interest in such Subsidiary, except:

  
 (a) sales of (x) inventory,
(y) used, surplus, obsolete or worn-out equipment or other worn-out property and Permitted Investments in the ordinary course of business and (z) sales, leases or other dispositions of inventory of the Borrower and its Subsidiaries
determined by the 

  

 89 

 
management of the Borrower to be no longer useful or necessary in the operation of the business of the Borrower or any of the Subsidiaries; 
  
 (b) sales, transfers and dispositions to the Borrower or a
Subsidiary; provided that any such sales, transfers or dispositions involving a Subsidiary that is not a Loan Party shall be made in compliance with Section 6.09; 
  
 (c) sale and leaseback transactions permitted by Section 6.06; 
  
 (d) the sale of defaulted receivables in the ordinary course
of business and not as part of an accounts receivables financing transaction; 
  
 (e) licensing and cross-licensing arrangements involving any technology or other intellectual property of the Borrower or any Subsidiary in the ordinary course of business; 
  
 (f) sales, transfers and other dispositions of assets (other
than Equity Interests in a Subsidiary) that are not permitted by any other clause of this Section; provided that the aggregate cumulative fair market value of all assets sold, transferred or otherwise disposed of after the Effective Date in
reliance upon this clause (f) shall not exceed the greater of $80,000,000 and 6.0% of Consolidated Total Assets; and 
  
 (g) sales of Securitization Assets to one or more Securitization Vehicles in Securitizations; provided that (i) each such
Securitization is effected on market terms as reasonably determined by the board of directors of the Borrower, (ii) the aggregate amount of Third Party Interests in respect of all such Securitizations does not exceed $100,000,000 at any time
outstanding, (iii) the proceeds to each such Securitization Vehicle from the issuance of Third Party Interests are applied substantially simultaneously with receipt thereof to the purchase from the Borrower or Subsidiaries of Securitization
Assets and an amount equal to 100% of the Net Proceeds from each such Securitization is applied to the mandatory repayment of Term Loans in accordance with Section 2.11(c) and (iv) the Equity Interests and Sellers’ Retained Interests
in respect of each such Securitization Vehicle shall be pledged to the Collateral Agent under the Collateral Agreement; 
  
 provided that (x) all sales, transfers, leases and other dispositions permitted hereby (other than pursuant to clauses (a)(y), (a)(z), (b), (e) and
(g) above) shall be made for at least 75% cash consideration (provided that for purposes of this clause (x) and the immediately following clause (y), the amount of any secured Indebtedness or other Indebtedness of a Subsidiary that is
not a Loan Party (as shown on the Borrower’s or such Subsidiary’s most recent balance sheet or in the notes thereto) of the Borrower or any Subsidiary of the Borrower that is assumed by the transferee of any such assets shall be deemed to
be cash or, in the case of Permitted Investments and sale and leaseback transactions, 100% cash consideration, (y) all sales, transfers, leases and other dispositions permitted by clause (d) above and all sales of Permitted
Investments shall be made for fair value and 

  

 90 

 
(z) all sales, transfers, leases and other dispositions in excess of $3,500,000 permitted by clauses (a) (other than Permitted Investments),
(e) and (f) above shall be made for fair value. 
  
 SECTION 6.06. Sale and Leaseback Transactions. The Borrower will not, and will not permit any of its Subsidiaries (other than Foreign Subsidiaries) to, enter into any arrangement, directly or indirectly, whereby it shall sell or
transfer any property, real or personal, used or useful in its business, whether now owned or hereinafter acquired, and thereafter rent or lease such property or other property that it intends to use for substantially the same purpose or purposes as
the property sold or transferred, except for the sale of any fixed or capital assets that is made for cash consideration in an amount not less than the cost of such fixed or capital asset and is consummated within 180 days after the Borrower or
such Subsidiary acquires or completes the construction of such fixed or capital asset; provided, however, that all Capital Lease Obligations, Attributable Debt and Liens associated with such sale and leaseback transaction are permitted
by Sections 6.01(a)(vii) and 6.02(a)(v) (treating the property subject thereto as being subject to a Lien securing the related Attributable Debt, in the case of a sale and leaseback not accounted for as a Capital Lease Obligation). In addition,
the Borrower and the Subsidiaries may engage in other sale and leaseback transactions in a cumulative aggregate amount not exceeding $25,000,000, provided that the Net Proceeds of any such sale and leaseback transaction are used simultaneously with
the consummation of such sale and leaseback transaction to prepay outstanding Term Loans without giving effect to the proviso of Section 2.11(c). 
  
 SECTION 6.07. Swap Agreements. The Borrower will not, and will not permit any of its Subsidiaries to, enter into any Swap Agreement, except
(a) Swap Agreements entered into in the ordinary course of business to hedge or mitigate risks to which the Borrower or any Subsidiary has actual exposure (other than those in respect of Equity Interests of the Borrower or any of its
Subsidiaries) in the conduct of its business or the management of its liabilities, (b) Swap Agreements required by any Securitization and (c) Swap Agreements entered into in order to effectively cap, collar or exchange interest rates (from
fixed to floating rates, from one floating rate to another floating rate or otherwise) with respect to any interest-bearing liability or investment of the Borrower or any Subsidiary. 
  
 SECTION 6.08. Restricted Payments; Certain Payments of Indebtedness. (a) The Borrower will not, and will not
permit any Subsidiary to, declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, except: 
  
 (i) Subsidiaries of the Borrower may declare and pay dividends ratably (or in a manner more favorable to the Borrower or Subsidiaries)
with respect to their capital stock; 
  
 (ii) the
Borrower may make Restricted Payments pursuant to and in accordance with stock option plans or other benefit plans for management, employees (including former employees) of the Borrower and its Subsidiaries; provided that the amount thereof
does not exceed $10,000,000 in any fiscal year 

  

 91 

 
(plus the amount of Equity Proceeds transferred to the Borrower during such fiscal year from sales of Equity Interests of Holdings to directors, consultants,
officers or employees in connection with permitted incentive arrangements, and the proceeds of any key-man life insurance policies received by the Borrower during such fiscal year (which amounts, if not used in any fiscal year, may be carried
forward to any subsequent fiscal year)); 
  
 (iii) the Borrower may pay dividends to Holdings (x) provided no Event of Default is continuing or would result therefrom and the Borrower would be in a Pro Forma Compliance with the Financial Covenants after giving effect thereto,
within the 30-day period prior to any payment date for interest on a series of Permitted Holdings Debt in the amount of such interest payment; provided, however, that the Borrower has delivered an irrevocable written notice to the Administrative
Agent (a “Holdings Restricted Payments Election”) stating that all dividends or distributions to Holdings for the purpose of paying interest on such series of Holdings’ Indebtedness will be made only pursuant to this clause
(iii)(x) and (y) at any time in such amounts as may be necessary to permit Holdings to pay its expenses and liabilities incurred in the ordinary course (other than payments in respect of Indebtedness or Restricted Payments) which are
attributable or allocable to the operations of the Borrower and the Subsidiaries; 
  
 (iv) provided no Event of Default is continuing or would result therefrom, the Borrower may make Restricted Payments to Holdings with
Eligible Equity Proceeds that have not been applied to any other Eligible Equity Proceeds Uses; provided that (x) such Restricted Payments are made not later than 270 days after the receipt of such Eligible Equity Proceeds by the
Borrower and (y) no Restricted Payment may be made under this clause (iv) during any fiscal quarter if the Cure Right has been (or is anticipated to be) exercised in respect of either of the two immediately preceding fiscal quarters;

  
 (v) provided no Event of Default is
continuing or would result therefrom, the Borrower may make Restricted Payments to Holdings (A) so long as the Senior Secured Leverage Ratio before and after giving effect to such Restricted Payment is less than 2.50 to 1.00, in an aggregate
amount not to exceed the Borrower’s Portion of Excess Cash Flow minus the cumulative aggregate amount of Designated Excess Cash Flow Expenditures theretofore made (including under this clause (v)) and (B) in an aggregate amount
not to exceed $30,000,000, minus the aggregate amount of any payments or repurchases of Indebtedness made pursuant to Section 6.08(b)(vi)(B), provided that no Restricted Payments may be made under this clause (v) during any
fiscal quarter if the Cure Right has been (or is anticipated to be) exercised in respect of either of the two immediately preceding fiscal quarters; 
  
 (vi) provided no Event of Default is continuing or would result therefrom, the Borrower may make Restricted Payments to Holdings with
Below Threshold Asset Disposition Proceeds that have not been applied to any other Below Threshold Asset Disposition Proceeds Uses; 
  

 92 

 (vii) noncash repurchases of Equity Interests deemed to occur upon exercise of stock
options if such Equity Interests represent a portion of the exercise price of such options; and 
  
 (viii) the Borrower or any Subsidiary may make Restricted Payments to Holdings in amounts required for Holdings to pay federal, state and
local income Taxes imposed directly on Holdings to the extent such Taxes are attributable to the income of the Borrower and its Subsidiaries (including, without limitation, by virtue of Holdings being the common parent of a consolidated or combined
Tax group of which the Borrower and/or its Subsidiaries are members); provided, however, that the amount of any such dividends or distributions (plus any taxes payable directly by the Borrower and its Subsidiaries) shall not exceed the
amount of such taxes that would have been payable directly by the Borrower and/or its Subsidiaries had the Borrower been the common parent of a separate tax group that included only the Borrower and its Subsidiaries and (ii) in amounts equal to
the amounts required for Parent to pay franchise taxes and other fees required to maintain its corporate existence. 
  
 Notwithstanding the foregoing, after delivery of a Holdings Restricted Payments Election, Restricted Payments made by the Borrower or the Subsidiaries to
Holdings for the purpose of providing funds for, or which are used by Holdings to, pay interest in respect of Indebtedness of Holdings shall be made only pursuant to (and any such Restricted Payments shall be deemed to have been made pursuant to)
clause (a)(iii) of this Section. 
  
 (b) The Borrower will not,
and will not permit any Subsidiary to, make or agree to pay or make, directly or indirectly, any payment or other distribution (whether in cash, securities or other property) of or in respect of principal of or interest on any Indebtedness, or any
payment or other distribution (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement, acquisition, cancelation or termination of any Indebtedness, except:

  
 (i) payment of Indebtedness created under the
Loan Documents; 
  
 (ii) payment of regularly
scheduled interest and principal payments as and when due in respect of any Indebtedness, other than payments in respect of the Senior Subordinated Debt, Permitted Subordinated Indebtedness or other subordinated Indebtedness prohibited by the
subordination provisions thereof; 
  
 (iii)
refinancings of Indebtedness to the extent permitted by Section 6.01; 
  
 (iv) payment of secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness; 
  
 (v) the legal defeasance or other repayment or prepayment of the 7% Debentures and the 7.375% Debentures, in
accordance with the terms thereof, 

  

 93 

 
provided that (x) such defeasance or payment has the effect of eliminating the Borrower’s obligations thereunder (including with respect to
covenants) and any requirement that such Debentures be secured by the Collateral and (y) the Agent has received such opinion of legal counsel as it may reasonably request, in form and substance reasonably satisfactory to the Agent, confirming
the matters set forth in subclause (x); 
  
 (vi) repurchases or repayments of other Indebtedness (A) so long as the Senior Secured Leverage Ratio before and after giving effect to such repurchase or repayment is less than 2.50 to 1.00, in a cumulative aggregate amount not to
exceed the Borrower’s Portion of Excess Cash Flow, minus the aggregate amount of Designated Excess Cash Flow Expenditures other than pursuant to this clause (vi) and (B) in an aggregate amount not to exceed $30,000,000,
minus the aggregate amount of Restricted Payments made by the Borrower pursuant to Section 6.08(a)(v)(B); 
  
 (vii) repurchases or repayments of Indebtedness made with Eligible Equity Proceeds that have not been applied to any other Eligible Equity
Proceeds Uses, provided such repurchase or repayment is made within 270 days after receipt of such Eligible Equity Proceeds by the Borrower; 
  
 (viii) repurchases or repayments of Indebtedness made with Below Threshold Asset Disposition Proceeds that have not been applied to any
other Below Threshold Asset Disposition Proceeds Uses; and 
  
 (ix) payment of Indebtedness evidenced by the Sponsor Note. 
  
 (c) The Borrower will not, and will not permit any Subsidiary to, furnish any funds to, make any Investment in, or provide other consideration to any other Person (including any Unrestricted Subsidiary) for purposes
of enabling such Person to, or otherwise permit any such Person to, make any Restricted Payment or other payment, repurchase, repayment or distribution restricted by this Section that could not be made directly by the Borrower in accordance with the
provisions of this Section. 
  
 SECTION 6.09. Transactions with
Affiliates. The Borrower will not, and will not permit any Subsidiary to, sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or otherwise engage in any other
transactions with, any of its Affiliates, except: 
  
 (a) transactions that do not involve Holdings and are at prices and on terms and conditions not less favorable to the Borrower or such Subsidiary than could be obtained on an arm’s-length basis from a Person who is not such an
Affiliate; 
  
 (b) transactions that
(i) have been approved by a majority of the members of the board of directors of the Borrower having no personal stake in such transactions and certified by a Financial Officer or executive officer of the Borrower as being on terms and
conditions not less favorable to the 

  

 94 

 
Borrower or its Subsidiaries than could be obtained on an arm’s-length basis from a Person who is not such an Affiliate or (ii) have been
determined by a nationally recognized appraisal or investment banking firm to be fair, from a financial standpoint, to the Borrower and its Subsidiaries or are on terms and conditions not less favorable to the Borrower and its Subsidiaries than
could be obtained on an arm’s-length basis from a Person who is not such an Affiliate; 
  
 (c) transactions between or among the Borrower and the Subsidiary Loan Parties not involving any other Affiliate; 
  
 (d) any Restricted Payment permitted by Section 6.08;

  
 (e) any payments to the Sponsor or any of its
Controlled Affiliates (i) consisting of management fees payable pursuant to the Management Agreement as in effect on the Effective Date; provided that (A) such management fees shall not exceed $1,000,000 in any fiscal year of the
Borrower or, if at the time of any payment thereof, the Senior Secured Leverage Ratio is less than 2.50 to 1.00, $2,000,000 in any fiscal year of the Borrower, (ii) payments made for financial advisory, financing, underwriting or placement
services or in respect of other investment banking services made pursuant to the Management Agreement as in effect on the Effective Date or otherwise approved by a majority of the board of directors of the Borrower, and (iii) in each case, all
reasonable out-of-pocket expenses incurred by, and indemnification payments owed to, the Sponsor or its Controlled Affiliates in connection with its performance of management, consulting, monitoring, financial advisory or other services with respect
to the Borrower and its Subsidiaries; 
  
 (f) any
employment agreements entered into by the Borrower or any of its Subsidiaries in the ordinary course of business and any issuance of securities, or other payments, awards or grants in cash, securities or otherwise pursuant to, or the funding of,
employment arrangements, stock options and stock ownership plans or similar employee benefit plans approved in good faith by the board of directors of the Borrower or of a Subsidiary, as appropriate, provided that any Restricted Payments
contemplated thereby will be subject to Section 6.08(a); 
  
 (g) the grant of stock options or similar rights to employees and directors of the Company pursuant to plans approved by the board of directors of the Borrower; 
  
 (h) loans or advances to employees in the ordinary course of
business which are approved by a majority of the board of directors of the Borrower in good faith, to the extent permitted by Section 6.04(q); 
  

 95 

 (i) the payment of compensation and reasonable fees to, and indemnity provided on behalf
of, directors, officers, consultants and employees of Holdings, of the Borrower and of the Subsidiaries; 
  
 (j) transactions pursuant to the Acquisition Agreement and other agreements governing the Transactions, including payment of fees and
expenses in connection with the Transactions, and transactions pursuant to agreements in existence on the Effective Date and set forth on Schedule 6.09 or, in each case, pursuant to any amendment thereto to the extent such amendment is not, when
taken as a whole, adverse to the Lenders in any material respect; 
  
 (k) any purchase by Holdings of Equity Interests of the Borrower or contributions by Holdings to the equity capital of the Borrower; provided that any Equity Interests of the Borrower purchased by Holdings shall be
pledged to the Agent pursuant to the Collateral Agreement; 
  
 (l) transactions with wholly owned Subsidiaries for the purchase or sale of goods, products, parts and services entered into in the ordinary course of business in a manner consistent with past practice; 
  
 (m) sales of Securitization Assets to Securitization
Vehicles and other transactions effected as part of Securitizations permitted by Section 6.05; 
  
 (n) the entry into and performance of any tax sharing agreement permitted by Section 6.08(a)(viii); and 
  
 (o) payments permitted by Section 6.08(b)(ix).

  
 SECTION 6.10. Restrictive Agreements. The Borrower will
not, and will not permit any Subsidiary to, directly or indirectly, enter into, incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes any condition upon (a) the ability of the Borrower or any
Subsidiary to create, incur or permit to exist any Lien upon any of its property or assets securing the Obligations, or (b) the ability of any Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock or
to make or repay loans or advances to the Borrower or any other Subsidiary or to Guarantee Indebtedness of the Borrower or any other Subsidiary; provided that (i) the foregoing shall not apply to restrictions and conditions imposed by
law or by any Loan Document, Senior Subordinated Debt Document, Senior Unsecured Debt Document or the indentures governing the Debentures, (ii) the foregoing shall not apply to restrictions and conditions existing on the date hereof identified
on Schedule 6.10 (and shall not apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (iii) the foregoing shall not apply to customary restrictions and conditions
contained in agreements relating to the sale of a Subsidiary or any asset pending such sale, provided such restrictions and conditions apply only to the Subsidiary or asset that is to be sold and such sale is permitted 

  

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hereunder, (iv) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement relating to secured Indebtedness
permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness and the proceeds thereof, (v) clause (a) of the foregoing shall not apply to customary provisions in leases or
other agreements restricting the assignment thereof, (vi) clause (a) of the foregoing shall not apply to restrictions or conditions imposed by any agreement related to any Indebtedness incurred by a Subsidiary prior to the date on which
such Subsidiary was acquired by the Borrower (but shall apply to any extension or renewal of, or any amendment or modification expanding the scope of, any such restriction or condition), (vii) clause (a) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement related to the refinancing of Indebtedness (other than the Debentures), provided that the terms of any such restrictions or conditions are not materially less favorable to the Lenders than the
restrictions or conditions contained in the predecessor agreements, (viii) the foregoing shall not apply to customary net worth provisions contained in real property leases or licenses of intellectual property and other similar agreements
entered into in the ordinary course of business, so long as the Borrower has determined in good faith that such net worth provisions could not reasonably be expected to impair the ability of the Borrower and its Subsidiaries to meet their ongoing
obligations, (ix) the foregoing shall not apply to customary restrictions and conditions contained in the document relating to any Lien, so long as (1) such Lien is permitted under Section 6.02 and such restrictions or conditions
relate only to the specific asset subject to such Lien, and (2) such restrictions and conditions are not created for the purpose of avoiding the restrictions imposed by this Section 6.10, the foregoing shall not apply to restrictions that
are contained in any documents documenting Indebtedness of any Foreign Subsidiary permitted hereunder, provided that such restrictions only apply to such Subsidiary and its assets, (x) the foregoing shall not apply to customary
provisions in joint venture agreements and (xi) the foregoing shall not apply to customary restrictions contained in any documents relating to any Securitizations, provided that such restrictions only apply to the applicable
Securitization Vehicle and its assets. 
  
 SECTION 6.11. Change
in Business. The Borrower will not, and will not permit any Subsidiary to, engage to any material extent at any time in any business or business activity other than a Permitted Business. 
  
 SECTION 6.12. Fiscal Year. Neither Holdings nor the Borrower shall
change its fiscal year for accounting and financial reporting purposes to end on any date other than December 31. 
  
 SECTION 6.13. Amendment of Material Documents. The Borrower will not, and will not permit any Subsidiary to, amend, modify or waive any of its
rights under (i) any Senior Subordinated Debt Document, (ii) any Senior Unsecured Debt Document, (iii) any of the Verizon Agreements, (iv) the indentures governing the Debentures or (v) its certificate of incorporation,
by-laws or other organizational documents if, in each case referred to above, such amendment, modification or waiver, taken as a whole, is adverse in any material respect to the interests of the Lenders. 
  

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 SECTION 6.14. Interest Coverage Ratio. The Borrower will not permit the ratio of (a) Adjusted
Consolidated EBITDA to (b) Consolidated Cash Interest Expense, in each case for any period of four consecutive fiscal quarters ending during a period set forth below, to be less than the ratio set forth below opposite such period: 

 

			
	 Period

	  	Ratio

	 Through September 30, 2007
	  	1.70 to 1.00
	 October 1, 2007 through September 30, 2008
	  	1.80 to 1.00
	 October 1, 2008 through September 30, 2009
	  	2.00 to 1.00
	 October 1, 2009 and thereafter
	  	2.25 to 1.00

  
 SECTION 6.15.
Leverage Ratio. The Borrower will not permit the Leverage Ratio as of the last day of a fiscal quarter ending during any period set forth below to exceed the ratio set forth opposite such period: 
  

			
	 Period

	  	Ratio

	 Through September 30, 2006
	  	6.75 to 1.00
	 October 1, 2006 through September 30, 2007
	  	6.60 to 1.00
	 October 1, 2007 through September 30, 2008
	  	6.00 to 1.00
	 October 1, 2008 through September 30, 2009
	  	5.25 to 1.00
	 October 1, 2009 and thereafter
	  	4.75 to 1.00

  
 SECTION 6.16.
Senior Secured Leverage Ratio. The Borrower will not permit the Senior Secured Leverage Ratio as of the last day of a fiscal quarter ending during any period set forth below to exceed the ratio set forth opposite such period: 
  

			
	 Period

	  	Ratio

	 Through September 30, 2007
	  	4.25 to 1.00
	 October 1, 2007 through September 30, 2008
	  	4.00 to 1.00
	 October 1, 2008 through September 30, 2009
	  	3.75 to 1.00
	 October 1, 2009 and thereafter
	  	3.50 to 1.00

  
 SECTION 6.17.
Liabilities of License Subsidiaries. The Borrower will not permit any License Subsidiary to incur, assume or permit to exist any Indebtedness, intercompany obligations or other liabilities (other than under the Collateral Agreement, the
Communications Act and taxes and other liabilities incurred in the ordinary course in 

  

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order to maintain its existence and preserve the FCC Licenses) or to engage in any business or activities other than the holding of FCC Licenses. 

 
 SECTION 6.18. Commingling of Accounts. The Borrower will not, nor
will it cause or permit any Subsidiary to, commingle amounts relating to Securitization Assets sold pursuant to a Securitization with cash or any other amounts of the Borrower and its Subsidiaries other than the temporary commingling of collections
on and proceeds of any accounts receivable or related assets of the Borrower and its Subsidiaries, in each case as may be necessary to identify and sort such collections and proceeds. 
  
 ARTICLE VII 
  
 Events of Default 
  
 If any of the following events (“Events of Default”) shall occur: 
  
 (a) the Borrower shall fail to pay any principal of any Loan or any reimbursement obligation in respect of
any LC Disbursement when and as the same shall become due and payable, whether at the due date thereof or at a date fixed for prepayment thereof or otherwise; 
  

(b) the Borrower shall fail to pay any interest on any Loan or any fee or any other amount (other than an amount referred to in
clause (a) of this Article) payable under this Agreement or any other Loan Document, when and as the same shall become due and payable, and such failure shall continue unremedied for a period of three Business Days; 
  
 (c) any representation or warranty made or deemed made by
Holdings, the Borrower or any Subsidiary in or in connection with any Loan Document or any amendment or modification thereof or waiver thereunder, or in any certificate furnished pursuant to or in connection with any Loan Document or any amendment
or modification thereof or waiver thereunder, shall prove to have been incorrect in any material respect when made or deemed made; 
  
 (d) Holdings or the Borrower shall fail to observe or perform any covenant, condition or agreement contained in Section 5.02(a), 5.04
(with respect to the existence of Holdings or the Borrower), 5.10, 5.11 or in Article VI; 
  
 (e) any Loan Party shall fail to observe or perform any covenant, condition or agreement contained in any Loan Document (other than those
specified in clause (a), (b) or (d) of this Article), and such failure shall continue unremedied for a period of 30 days after notice thereof from the Administrative Agent to the Borrower (which notice will promptly be given at
the request of any Lender); 
  

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 (f) Holdings, the Borrower or any Subsidiary shall fail to make any payment (whether
of principal or interest and regardless of amount) in respect of any Material Indebtedness, when and as the same shall become due and payable (after giving effect to any applicable grace period specified in the agreement or instrument governing such
Indebtedness); 
  
 (g) any event or condition
occurs that results in any Material Indebtedness becoming due prior to its scheduled maturity or that enables or permits (with or without the giving of notice, but after giving effect to all applicable grace periods contained in the applicable
instrument) the holder or holders of any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its
scheduled maturity; provided that this clause (g) shall not apply to secured Indebtedness that becomes due as a result of the voluntary sale or transfer of the property or assets securing such Indebtedness; 
  
 (h) an involuntary proceeding shall be commenced or an
involuntary petition shall be filed in a court of competent jurisdiction seeking (i) liquidation, reorganization or other relief in respect of Holdings, the Borrower or any Material Subsidiary (except, in the case of any Material Subsidiary, in
a transaction permitted by Section 6.03), or of a substantial part of its assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect or (ii) the appointment of a receiver,
trustee, custodian, sequestrator, conservator or similar official for Holdings, the Borrower or any Material Subsidiary or for a substantial part of its assets, and, in any such case, such proceeding or petition shall continue undismissed for
60 days or an order or decree approving or ordering any of the foregoing shall be entered; 
  
 (i) Holdings, the Borrower or any Material Subsidiary shall (i) voluntarily commence any proceeding or file any petition seeking
relief under any Federal, state or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in effect, (ii) consent to the institution of any proceeding or petition described in clause (h) of this Article,
(iii) apply for or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for Holdings, the Borrower or any Material Subsidiary or for a substantial part of its assets, (iv) file an
answer admitting the material allegations of a petition filed against it in any such proceeding that would entitle the other party or parties to an order for relief or (v) make a general assignment for the benefit of; 
  
 (j) one or more judgments for the payment of money in an
aggregate amount in excess of $12,500,000 (net of amounts covered by insurance) shall be rendered against Holdings, the Borrower, any Subsidiary and the same shall remain undischarged for a period of 45 consecutive days during which execution
shall not be effectively stayed, or any action shall be legally taken 

  

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by a judgment creditor to attach or levy upon any assets of Holdings, the Borrower or any Subsidiary to enforce any such judgment; 
  
 (k) an ERISA Event shall have occurred that, when taken
together with all other ERISA Events that have occurred, would reasonably be expected to result in a Material Adverse Effect; 
  
 (l) any Lien purported to be created under any Security Document shall cease to be, or shall be asserted by any Loan Party not to be, a
valid and perfected Lien (perfected as, or having the priority, required by this Agreement or the relevant Security Document and subject to such limitations and restrictions as set forth herein and therein) on any Collateral having, in the
aggregate, a value in excess of $12,500,000, except (i) as a result of the sale or other disposition of the applicable Collateral in a transaction permitted under the Loan Documents or (ii) as a result of the Agent’s failure to
maintain possession of any stock certificates, promissory notes or other instruments delivered to it under the Collateral Agreement or the Shared Collateral Agreement or to file Uniform Commercial Code continuation statements and except to the
extent that such loss is covered by a Lender’s title insurance policy and the Administrative Agent shall be reasonably satisfied with the credit of such insurer; 
  
 (m) a Change in Control shall occur; or 
  
 (n) any Guarantee under the Collateral Agreement for any reason shall cease to be in full force and effect
(other than in accordance with its terms), or any Guarantor shall assert in writing that the Collateral Agreement or any Guarantee thereunder has ceased to be or is not enforceable; 
  
 then, and in every such event (other than an event with respect to the Borrower described in clause (h) or (i) of this Article),
and at any time thereafter during the continuance of such event, the Administrative Agent may with the consent of the Required Lenders, and at the request of the Required Lenders shall, by notice to the Borrower, take either or both of the following
actions, at the same or different times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately, and (ii) declare the Loans then outstanding to be due and payable in whole or in part, and thereupon
the principal of the Loans so declared to be due and payable, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall become due and payable immediately, without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Borrower; and in case of any event with respect to the Borrower described in clause (h) or (i) of this Article, the Commitments shall automatically terminate and the
principal of the Loans then outstanding, together with accrued interest thereon and all fees and other obligations of the Borrower accrued hereunder, shall automatically become due and payable, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrower. 
  

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 Notwithstanding anything to the contrary contained in Article VII, in the event that the Borrower fails
to comply with the requirements of any of the Financial Covenants, until the expiration of the 10th day subsequent to the date the certificate calculating compliance with such Financial Covenant is required to be delivered pursuant to
Section 5.01, Holdings shall have the right to issue Permitted Cure Securities for cash or otherwise receive cash contributions to the capital of Holdings, and, in each case, to contribute any such cash to the capital of the Borrower
(collectively, the “Cure Right”), and upon the receipt by the Borrower of such cash (the “Cure Amount”) pursuant to the exercise by Holdings of such Cure Right, such Financial Covenant shall be recalculated giving
effect to the following pro forma adjustments: 
  
 (a) Adjusted
Consolidated EBITDA shall be increased, solely for the purpose of measuring compliance with such Financial Covenant and not for any other purpose under this Agreement, including in connection with determining whether, after giving effect to an
event, the requirements of any of the Financial Covenants have been met or Pro Forma Compliance exists, by an amount equal to the Cure Amount; and 
  
 (b) If, after giving effect to the foregoing recalculations, the Borrower shall then be in compliance with the requirements of the Financial Covenants,
the Borrower shall be deemed to have satisfied the requirements of the Financial Covenants as of the relevant date of determination with the same effect as though there had been no failure to comply therewith at such date, and the applicable breach
or default of the Financial Covenants that had occurred shall be deemed cured for this purposes of the Agreement. 
  
 Notwithstanding anything herein to the contrary, (i) in each four-fiscal-quarter period there shall be at least one fiscal quarter in which the Cure
Right is not exercised, (ii) in each eight-fiscal-quarter period, there shall be a period of at least four consecutive fiscal quarters during which the Cure Right is not exercised and (iii) the Cure Amount shall be no greater than the
amount required for purposes of complying with the Financial Covenants. 
  
 ARTICLE VIII 
  
 The Agent 
  
 Each of the Lenders and the Issuing Bank hereby irrevocably appoints the
Agent as its agent and authorizes the Agent to take such actions on its behalf and to exercise such powers as are delegated to the Agent by the terms of the Loan Documents, together with such actions and powers as are reasonably incidental thereto.

  
 The bank serving as the Agent hereunder shall have the same
rights and powers in its capacity as a Lender as any other Lender and may exercise the same as though it were not the Agent, and such bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with
Holdings, the Borrower or any Subsidiary or other Affiliate thereof as if it were not the Agent hereunder. 
  

 102 

 The Agent shall not have any duties or obligations except those expressly set forth in the Loan
Documents. Without limiting the generality of the foregoing, (a) the Agent shall not be subject to any fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing, (b) the Agent shall not have any duty
to take any discretionary action or exercise any discretionary powers, except discretionary rights and powers expressly contemplated by the Loan Documents that the Agent is required to exercise in writing as directed by the Required Lenders (or such
other number or percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02), and (c) except as expressly set forth in the Loan Documents, the Agent shall not have any duty to disclose, and shall not
be liable for the failure to disclose, any information relating to Holdings, the Borrower or any of its Subsidiaries that is communicated to or obtained by the bank serving as Agent or any of its Affiliates in any capacity (other than as Agent). The
Agent shall not be liable for any action taken or not taken by it with the consent or at the request of the Required Lenders (or such other number or percentage of the Lenders as shall be necessary under the circumstances as provided in
Section 9.02) or in the absence of its own gross negligence or wilful misconduct. The Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof is given to the Agent by Holdings, the Borrower or a
Lender, and the Agent shall not be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or in connection with any Loan Document, (ii) the contents of any certificate, report or
other document delivered thereunder or in connection therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth in any Loan Document, (iv) the validity, enforceability,
effectiveness or genuineness of any Loan Document or any other agreement, instrument or document, or (v) the satisfaction of any condition set forth in Article IV or elsewhere in any Loan Document, other than to confirm receipt of items
expressly required to be delivered to the Agent. 
  
 The Agent
shall be entitled to rely upon, and shall not incur any liability for relying upon, any notice, request, certificate, consent, statement, instrument, document or other writing believed by it to be genuine and to have been signed or sent by the
proper Person. The Agent also may rely upon any statement made to it orally or by telephone and believed by it to be made by the proper Person, and shall not incur any liability for relying thereon. The Agent may consult with legal counsel (who may
be counsel for the Borrower), independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance with the advice of any such counsel, accountants or experts. 
  
 The Agent may perform any and all its duties and exercise its rights and
powers by or through any one or more sub-agents appointed by the Agent. The Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers through their respective Related Parties. The exculpatory provisions of
the preceding paragraphs shall apply to any such sub-agent and to the Related Parties of each Agent and any such sub-agent, and shall apply to their respective activities in connection with the syndication of the credit facilities provided for
herein as well as activities as Agent. 
  

 103 

 Subject to the appointment and acceptance of a successor to the Agent as provided in this paragraph, the
Agent may resign at any time by notifying the Lenders, the Issuing Bank and the Borrower. Upon any such resignation, the Required Lenders shall have the right, with the consent of the Borrower (such consent not to be unreasonably withheld or delayed
and such consent not to be required if an Event of Default under clause (a), (b), (h) or (i) of Article VII has occurred and is continuing), to appoint a successor. If no successor shall have been so appointed by the Required Lenders
and shall have accepted such appointment within 30 days after the retiring Agent gives notice of its resignation, then the retiring Agent may, on behalf of the Lenders and the Issuing Bank, appoint a successor Agent which shall be a bank with
an office in New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as Agent and Collateral Agent hereunder by a successor, such successor shall succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations hereunder. The fees payable by the Borrower to a successor Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After the Agent’s resignation hereunder, the provisions of this Article and Section 9.03 shall continue in effect for the benefit of such retiring Agent, its sub-agents and their
respective Related Parties in respect of any actions taken or omitted to be taken by any of them while it was acting as Agent. 
  
 Each Lender acknowledges that it has, independently and without reliance upon the Agent or any other Lender and based on such documents and information as
it has deemed appropriate, made its own credit analysis and decision to enter into this Agreement. Each Lender also acknowledges that it will, independently and without reliance upon the Agent or any other Lender and based on such documents and
information as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based upon this Agreement, any other Loan Document or related agreement or any document furnished hereunder or
thereunder. 
  
 ARTICLE IX 
  
 Miscellaneous 
  
 SECTION 9.01. Notices. (a) Except in the case of notices and
other communications expressly permitted to be given by telephone, all notices and other communications provided for herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopy, as follows: 
  
 (i) if to
Holdings or the Borrower, to it at 1177 Bishop Street, Honolulu, Hawaii 96813, Attention of Alan Oshima, General Counsel (Telecopy No. 808-546-7621); 
  

 104 

 (ii) if to the Agent, to JPMorgan Chase Bank, N.A., Loan and Agency Services Group,
1111 Fannin, 10th Floor, Houston, Texas 77002, Attention of Maria Giannavola (Telecopy No. 713-750-2878), with a copy to JPMorgan Chase Bank, N.A., 270 Park Avenue, New York, New York 10017, Attention of John Kowalczuk (Telecopy
No. 212-270-4584); 
  
 (iii) if to the
Issuing Bank or the Swingline Lender, to JPMorgan Chase Bank, N.A., Loan and Agency Services Group, 1111 Fannin, 10th Floor, Houston, Texas 77002, Attention of Maria Giannavola (Telecopy No. 713-750-2878), with a copy to JPMorgan Chase Bank,
N.A., 270 Park Avenue, New York, New York 10017, Attention of John Kowalczuk (Telecopy No. 212-270-4584); and 
  
 (iv) if to any other Lender, to it at its address (or telecopy number) set forth in its Administrative Questionnaire. 
  
 (b) Notices and other communications to the Lenders hereunder may be
delivered or furnished by electronic communications pursuant to procedures approved by the Administrative Agent; provided that the foregoing shall not apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent
and the applicable Lender. The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that
approval of such procedures may be limited to particular notices or communications. 
  
 (c) Any party hereto may change its address or telecopy number for notices and other communications hereunder by notice to the other parties hereto. All notices and other communications given to any party hereto in
accordance with the provisions of this Agreement shall be deemed to have been given on the date of receipt. 
  
 SECTION 9.02. Waivers; Amendments. (a) No failure or delay by the Agent, the Issuing Bank or any Lender in exercising any right or power
hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or
further exercise thereof or the exercise of any other right or power. The rights and remedies of the Agent, the Issuing Bank and the Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any rights or remedies
that they would otherwise have. No waiver of any provision of any Loan Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall be permitted by paragraph (b) of this Section, and
then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a
waiver of any Default, regardless of whether the Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at the time. 
  

 105 

 (b) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may be waived,
amended or modified except, in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by Holdings, the Borrower and the Required Lenders or, in the case of any other Loan Document, pursuant to an agreement or
agreements in writing entered into by the Agent and the Loan Party or Loan Parties that are parties thereto, in each case with the consent of the Required Lenders; provided that no such agreement shall (i) increase the Commitment of any
Lender without the written consent of such Lender, (ii) reduce the principal amount of any Loan or LC Disbursement held by any Lender or reduce the rate of interest thereon, or reduce any fees payable hereunder, without the written consent of
such Lender, (iii) postpone the final maturity of any Lender’s Loan, or any scheduled date of payment of the principal amount of any Lender’s Term Loan under Section 2.10, or the required date of reimbursement of any LC
Disbursement held by any Lender, or any date for the payment of any interest or fees payable to any Lender hereunder, or reduce the amount of, waive or excuse any such payment, or postpone the scheduled date of expiration of any Commitment, without
the written consent of such Lender, (iv) change Section 2.18(b) or (c) in a manner that would alter the pro rata sharing of payments required thereby or change the last sentence of Section 2.08(e) in a manner which would alter
the pro rata reduction of Commitments thereby, without the written consent of each Lender, (v) change any of the provisions of this Section or the definition of “Required Lenders” or any other provision of any Loan Document specifying
the number or percentage of Lenders (or Lenders of any Class) required to waive, amend or modify any rights thereunder or make any determination or grant any consent thereunder, without the written consent of each Lender (or each Lender of such
Class, as the case may be), (vi) release Holdings from its Guarantee under the Collateral Agreement or release a substantial portion of the Guarantees of the Subsidiary Loan Parties under the Collateral Agreement (except as expressly provided
therein), or limit its liability in respect of such Guarantee, without the written consent of each Lender, (vii) release all or substantially all of the Collateral from the Liens of the Security Documents, without the written consent of each
Lender, (viii) change any provisions of any Loan Document in a manner that by its terms adversely affects the rights in respect of payments due to Lenders holding Loans of any Class differently than those holding Loans of any other Class,
without the written consent of Lenders holding a majority in interest of the outstanding Loans and unused Commitments of each affected Class or (ix) limit the rights of the Tranche B Lenders to decline mandatory prepayments as provided in
Section 2.11, without the written consent of Tranche B Lenders holding a majority of the outstanding Tranche B Loans; provided, further that (A) no such agreement shall amend, modify or otherwise affect the rights or duties
of the Agent, the Issuing Bank or the Swingline Lender without the prior written consent of the Agent, the Issuing Bank or the Swingline Lender, as the case may be, and (B) any waiver, amendment or modification of this Agreement that by its
terms affects the rights or duties under this Agreement of the Revolving Lenders (but not the Tranche A Lenders and Tranche B Lenders), the Tranche A Lenders (but not the Revolving Lenders and Tranche B Lenders) or the Tranche B Lenders (but not the
Revolving Lenders and Tranche A Lenders) may be effected by an agreement or agreements in writing entered into by Holdings, the Borrower and requisite percentage in interest of the affected Class of Lenders that would be required to consent 

  

 106 

 
thereto under this Section if such Class of Lenders were the only Class of Lenders hereunder at the time. Notwithstanding the foregoing, any provision of
this Agreement may be amended by an agreement in writing entered into by Holdings, the Borrower, the Required Lenders and the Agent (and, if their rights or obligations are affected thereby, the Issuing Bank and the Swingline Lender) if (i) by
the terms of such agreement the Commitment of each Lender not consenting to the amendment provided for therein shall terminate upon the effectiveness of such amendment and (ii) at the time such amendment becomes effective, each Lender not
consenting thereto receives payment in full of the principal of and interest accrued on each Loan made by it and all other amounts owing to it or accrued for its account under this Agreement. 
  
 (c) If, in connection with any proposed change, waiver, discharge or
termination of or to any of the provisions of this Agreement as contemplated by clauses (i) through (ix), inclusive, of the first proviso to Section 9.02(b), the consent of Lenders having Revolving Exposures, Term Loans and unused
Commitments representing more than 50% of the sum of the total Revolving Exposures, outstanding Term Loans and unused Commitments at such time is obtained but the consent of one or more of such other Lenders whose consent is required is not
obtained, then the Borrower shall have the right, so long as all non-consenting Lenders whose individual consent is required are treated as described in either clause (i) or (ii) below, to either (i) replace each such non-consenting
Lender or Lenders (or, at the option of the Borrower if any such Lender’s consent is required with respect to less than all Classes of Loans (or related Commitments), to replace only the Commitments and/or Loans of such non-consenting
Lender that gave rise to the need to obtain such Lender’s individual consent) with one or more assignees pursuant to, and with the effect of an assignment under, Section 2.19 so long as at the time of such replacement, each such assignee
consents to the proposed change, waiver, discharge or termination or (ii) terminate such nonconsenting Lender’s Commitment (if such Lender’s consent is required as a result of its Commitment) and/or repay each Class of outstanding
Loans of such Lender that gave rise to the need to obtain such Lender’s consent and/or cash collateralize its LC Exposure, in accordance with Section 2.05(j); provided (A) that, unless the Commitments that are terminated and
Loans that are repaid pursuant to the preceding clause (ii) are immediately replaced in full at such time through the addition of new Lenders or the increase of the Commitments and/or outstanding Loans of existing Lenders (who in each case must
specifically consent thereto), then in the case of any action pursuant to the preceding clause (ii), Lenders having Revolving Exposures, Term Loans and unused Commitments representing more than 50% of the sum of the total Revolving Exposures,
outstanding Term Loans and unused Commitments at such time (determined after giving effect to the proposed action) shall specifically consent thereto and (B) any such replacement or termination transaction described above shall be effective on
the date notice is given of the relevant transaction and shall have a settlement date no earlier than five Business Days and no later than 90 days after the relevant transaction; provided further that the Borrower shall not have
the right to replace a Lender, terminate its Commitment or repay its Loans solely as a result of the exercise of such Lender’s rights (and the withholding of any required consent by such Lender) pursuant to the second proviso to
Section 9.02(b). 
  

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 (d) Without the consent of the Lenders or Issuing Banks, the Loan Parties and the Administrative Agent
may (in their sole discretion, or shall, to the extent required by any Loan Document) enter into any amendment, modification or waiver of any Loan Document, or enter into any new agreement or instrument, to effect the granting, perfection,
protection, expansion or enhancement of any security interest in any Collateral or additional property to become Collateral for the benefit of the Secured Parties, or as required by local law to give effect to, or protect, any security interest for
the benefit of the Secured Parties in any Collateral, or so that the security interests therein comply with applicable law. 
  
 (e) Notwithstanding the foregoing, this Agreement may be amended (or amended and restated) with the written consent of the Required Lenders, the
Administrative Agent, Holdings and the Borrower (i) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect
thereof to share ratably in the benefits of this Agreement and the other Loan Documents with the Term Loans and the Revolving Loans and the accrued interest and fees in respect thereof and (ii) to include appropriately the Lenders holding such
credit facilities in any determination of the Required Lenders. 
  
 SECTION 9.03. Expenses; Indemnity; Damage Waiver. (a) The Borrower shall pay (i) all reasonable out-of-pocket expenses incurred by the Agent, the Arrangers and their Affiliates, including the reasonable fees, charges and
disbursements of transaction and documentation counsel for the Agent and the Arrangers and such other local counsel and special counsel as may be required in the reasonable judgment of the Agent and the Arrangers, in connection with the syndication
of the credit facilities provided for herein, the preparation and administration of the Loan Documents or any amendments, modifications or waivers of the provisions thereof (whether or not the transactions contemplated hereby or thereby shall be
consummated), (ii) all reasonable out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment, renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all reasonable
out-of-pocket expenses incurred by the Agent, the Arrangers, the Issuing Bank or any Lender, (including the reasonable fees, charges and disbursements of transaction and documentation counsel for the Agent, the Arrangers, the Issuing Bank and any
Lender and such other local counsel and special counsel as may be required in the reasonable judgment of the Agent and the Arrangers) in connection with documentary Taxes or the enforcement or protection of its rights in connection with the Loan
Documents, including its rights under this Section, or in connection with the Loans made or Letters of Credit issued hereunder, including all such out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of such
Loans or Letters of Credit. 
  
 (b) The Borrower shall indemnify
the Agent, the Arrangers, the Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related expenses, including the reasonable fees, charges and disbursements of counsel (including such other local counsel 

  

 108 

 
and special counsel as may be required in the reasonable judgment of the Agent and the Arrangers), incurred by or asserted against any Indemnitee arising out
of, in connection with, or as a result of (i) the execution or delivery of any Loan Document or any other agreement or instrument contemplated hereby, the performance by the parties to the Loan Documents of their obligations thereunder or the
consummation of the Transactions or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a Letter of
Credit if the documents presented in connection with such demand do not strictly comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or Release of Hazardous Materials on or from any Mortgaged Property or any
other property currently or formerly owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower or any of its Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory and regardless of whether instituted by any Loan Party or whether any Indemnitee is a party thereto; provided that
such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted
from such Indemnitee’s breach of its Obligations under the Loan Documents or from the gross negligence or wilful misconduct of such Indemnitee. 
  
 (c) To the extent that the Borrower fails to pay any amount required to be paid by it to the Agent, the Issuing Bank or the Swingline Lender under
paragraph (a) or (b) of this Section, each Lender severally agrees to pay to the Agent, and each Revolving Lender agrees to pay to the Issuing Bank or the Swingline Lender, as the case may be, such Lender’s pro rata share (determined
as of the time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case may be, was
incurred by or asserted against the Agent, the Issuing Bank or the Swingline Lender in its capacity as such. For purposes hereof, a Lender’s “pro rata share” with respect to payments to the Agent shall be determined based upon its
share of the sum of the total Revolving Exposures, outstanding Term Loans and unused Commitments at the time, and a Revolving Lender’s “pro rata share” with respect to payments to the Issuing Bank or Swingline Lender shall be
determined based upon its share of the sum of the total Revolving Exposures and unused Commitments at the time. 
  
 (d) To the extent permitted by applicable law, neither Holdings nor the Borrower shall assert, and each hereby waives, any claim against any Indemnitee,
on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result of, this Agreement or any agreement or instrument contemplated hereby,
the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof. 
  
 (e) All amounts due under this Section shall be payable not later than 10 days after written demand therefor accompanied by reasonable documentation with respect to any reimbursement, indemnification or other amount
requested. 
  

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 SECTION 9.04. Successors and Assigns. (a) The provisions of this Agreement shall be binding
upon and inure to the benefit of each of the parties hereto and its successors and assigns permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) the Borrower may not assign or otherwise
transfer any of its rights or obligations hereunder without the prior written consent of each Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void) and (ii) no Lender may assign or
otherwise transfer its rights or obligations hereunder except in accordance with this Section. Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their successors and assigns
permitted hereby (including any Affiliate of the Issuing Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of this Section) and, to the extent expressly contemplated hereby, the Related Parties of
each of the Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement. 
  
 (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time owing to it), with the prior written consent (such consent not to be unreasonably withheld or delayed) of: 
  
 (A) the Borrower, provided that no consent of the
Borrower shall be required (x) for an assignment by a Revolving Lender to an existing Revolving Lender or an assignment of Term Loans to a Lender, an Affiliate of a Lender or an Approved Fund (as defined below) or, (y) if an Event of
Default under clause (a), (b), (h) or (i) of Article VII has occurred and is continuing, to any assignee; and 
  
 (B) the Administrative Agent (and, in the case of an assignment of all or a portion of any Lender’s obligations in respect of its
Revolving Commitment (or its LC Exposure or Swingline Exposure in connection therewith), the Issuing Bank and the Swingline Lender), provided that no consent of the Administrative Agent, Issuing Bank or Swingline Lender, as the case may be,
shall be required for an assignment of Term Loans to an assignee that is a Lender immediately prior to giving effect to such assignment, an Affiliate of such a Lender or an Approved Fund with respect to such a Lender. 
  
 (ii) Assignments shall be subject to the following
conditions: 
  
 (A) except in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund or an assignment of the entire remaining amount of the assigning Lender’s Commitment, the amount of the Commitment of the assigning Lender subject to each such assignment
(determined as of the date the Assignment and Assumption with respect to such assignment is delivered to the Administrative Agent) shall not be less than $5,000,000 in the case of assignments of Revolving Commitments or Revolving Loans, and
$1,000,000 in 

  

 110 

 
the case of assignments of Term Loans, unless each of the Borrower and the Administrative Agent otherwise consent, provided that no such consent of
the Borrower shall be required if an Event of Default under clause (a), (b), (h) or (i) of Article VII has occurred and is continuing; provided, further that simultaneous assignments to or by related Approved Funds shall
be treated as one assignment for purposes of the minimum assignment requirement. 
  
 (B) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement, provided that this clause shall not be construed to prohibit the assignment of a proportionate part of all the assigning Lender’s rights and obligations in respect of one Class of Commitments or Loans;

  
 (C) the parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500 (it being understood that only a single processing and recordation fee of $3,500 will be payable with respect to
any multiple assignments to a Lender, an Affiliate of a Lender or an Approved Fund pursuant to clause (ii)(A) above, each of which is individually less than $1,000,000, that are simultaneously consummated); and 
  
 (D) the assignee, if it shall not be a Lender, shall deliver
to the Administrative Agent an Administrative Questionnaire. 
  
 For purposes of this Section 9.04(b), the term “Approved Fund” has the following meaning: 
  
 “Approved Fund” means any Person (other than an natural person) that is engaged in making, purchasing, holding or investing in bank loans
and similar extensions of credit in the ordinary course and that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) any entity or an Affiliate of an entity that administers or manages a Lender. 

 
 (iii) Subject to acceptance and recording thereof pursuant to
paragraph (b)(iv) of this Section, from and after the effective date specified in each Assignment and Assumption the assignee thereunder shall be a party hereto and, to the extent of the interest assigned by such Assignment and Assumption, have
the rights and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under this Agreement (and, in the case
of an Assignment and Assumption covering all of the assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.16, 2.17
and 9.03). Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this Section 9.04 shall be treated for purposes of this Agreement as a sale by such Lender of a participation in such
rights and obligations in accordance with paragraph (c) of this Section. 
  

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 (iv) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall maintain at one
of its offices a copy of each Assignment and Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitment of, and principal amount of the Loans and LC Disbursements owing to, each Lender
pursuant to the terms hereof from time to time, which register shall indicate that each lender is entitled to interest paid with respect to such Loans and LC Disbursements (the “Register”). The entries in the Register shall be
conclusive absent manifest error, and the Borrower, the Administrative Agent, the Issuing Bank and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be available for inspection by the Borrower, the Issuing Bank and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 
  
 (v) Upon its receipt of a duly completed Assignment and Assumption executed
by an assigning Lender and an assignee, the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Lender hereunder), the processing and recordation fee referred to in paragraph (b) of this Section and
any written consent to such assignment required by paragraph (b) of this Section, the Administrative Agent shall accept such Assignment and Assumption and record the information contained therein in the Register. No assignment shall be
effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph. 
  
 (c) (i) Any Lender may, without the consent of, or notice to, the Borrower, the Administrative Agent, the Issuing Bank or the Swingline Lender, sell
participations to one or more banks or other entities (a “Participant”) in all or a portion of such Lender’s rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged, (B) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations and (C) the
Borrower, the Administrative Agent, the Issuing Bank and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this Agreement. Any agreement or instrument
pursuant to which a Lender sells such a participation shall provide that such Lender shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided that
such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, modification or waiver described in the first proviso to Section 9.02(b) that affects such Participant. Subject
to paragraph (c)(ii) of this Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had acquired its interest by assignment pursuant to
paragraph (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though it were a Lender, provided such Participant agrees to be subject to Section 2.18(c) as
though it were a Lender. 
  

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 (ii) A Participant shall not be entitled to receive any greater payment under Section 2.15 or 2.17
than the applicable Lender would have been entitled to receive with respect to the participation sold to such Participant, unless the sale of the participation to such Participant is made with the Borrower’s prior written consent. A Participant
shall not be entitled to the benefits of Section 2.17 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the Borrower, to comply with Section 2.17(e) as though it
were a Lender. 
  
 (d) Any Lender may at any time pledge or assign
a security interest in all or any portion of its rights under this Agreement to secure obligations of such Lender, including without limitation any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall not
apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto. 
  
 (e) If the Borrower wishes to
replace the Loans or Commitments under any Facility with ones having different terms, it shall have the option, with the consent of the Administrative Agent and subject to at least three Business Days’ advance notice to the Lenders under such
Facility, instead of prepaying the Loans or reducing or terminating the Commitments to be replaced, to (i) require the Lenders under such Facility to assign such Loans or Commitments to the Administrative Agent or its designees and
(ii) amend the terms thereof in accordance with Section 9.02 (with such replacement, if applicable, being deemed to have been made pursuant to Section 9.02(e)). Pursuant to any such assignment, all Loans and Commitments to be replaced
shall be purchased at par (allocated among the Lenders under such Facility in the same manner as would be required if such Loans were being optionally prepaid or such Commitments were being optionally reduced or terminated by the Borrower),
accompanied by payment of any accrued interest and fees thereon and any amounts owing pursuant to Section 9.03(b). By receiving such purchase price, the Lenders under such Facility shall automatically be deemed to have assigned the Loans or
Commitments under such Facility pursuant to the terms of the form of Assignment and Acceptance attached hereto as Exhibit A, and accordingly no other action by such Lenders shall be required in connection therewith. The provisions of this
paragraph (e) are intended to facilitate the maintenance of the perfection and priority of existing security interests in the Collateral during any such replacement. 
  
 SECTION 9.05. Survival. All covenants, agreements, representations and warranties made by the Loan Parties in the
Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the
execution and delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Administrative Agent, the
Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of or any 

  

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accrued interest on any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and
so long as the Commitments have not expired or terminated. The provisions of Sections 2.15, 2.16, 2.17 and 9.03 and Article VIII shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated
hereby, the repayment of the Loans, the expiration or termination of the Letters of Credit and the Commitments or the termination of this Agreement or any provision hereof. 
  
 SECTION 9.06. Counterparts; Integration; Effectiveness. This Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Loan Documents and any separate letter agreements
with respect to fees payable to the Administrative Agent constitute the entire contract among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the
subject matter hereof. Except as provided in Section 4.01, this Agreement shall become effective when it shall have been executed by the Administrative Agent and when the Administrative Agent shall have received counterparts hereof which, when
taken together, bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a
signature page of this Agreement by telecopy or electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement. 
  
 SECTION 9.07. Severability. Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a
particular jurisdiction shall not invalidate such provision in any other jurisdiction. 
  
 SECTION 9.08. Right of Setoff. If an Event of Default shall have occurred and be continuing, each Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set
off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other obligations at any time owing by such Lender to or for the credit or the account of the Borrower against any of and all the
obligations of the Borrower now or hereafter existing under this Agreement held by such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of
each Lender under this Section are in addition to other rights and remedies (including other rights of setoff) which such Lender may have. 
  
 SECTION 9.09. Governing Law; Jurisdiction; Consent to Service of Process. (a) This Agreement shall be construed in accordance with and
governed by the law of the State of New York. 
  

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 (b) Each of Holdings and the Borrower hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action
or proceeding arising out of or relating to any Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or
proceeding may be heard and determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be
enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or any other Loan Document shall affect any right that the Agent, the Issuing Bank or any Lender may otherwise have to bring
any action or proceeding relating to this Agreement or any other Loan Document against Holdings, the Borrower or its properties in the courts of any jurisdiction. 
  
 (c) Each of Holdings and the Borrower hereby irrevocably and unconditionally waives, to the fullest extent it may legally
and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph
(b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
  
 (d) Each party to this Agreement irrevocably consents to service of process
in the manner provided for notices in Section 9.01. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
  
 SECTION 9.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION. 

 
 SECTION 9.11. Headings. Article and Section headings and the Table
of Contents used herein are for convenience of reference only, are not part of this 

  

 115 

 
Agreement and shall not affect the construction of, or be taken into consideration in interpreting, this Agreement. 
  
 SECTION 9.12. Confidentiality. Each of the Agent, the Issuing Bank and
the Lenders agrees to maintain the confidentiality of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates’ directors, officers, trustees, employees and agents, including accountants,
legal counsel and other advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority, (c) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (d) to any other party to this Agreement, (e) in connection with the exercise of any
remedies hereunder or any suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the same as those
of this Section, to (i) to any pledgee under Section 9.04(d) or any assignee of or Participant in, or any prospective assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any actual or
prospective counterparty (or its advisors) to any swap or derivative transaction relating to the Borrower and its obligations, (g) with the consent of the Borrower or (h) to the extent such Information (i) becomes publicly available
other than as a result of a breach of this Section or (ii) becomes available to the Agent, the Issuing Bank or any Lender on a nonconfidential basis from a source other than Holdings or the Borrower. For the purposes of this Section,
“Information” means all information received from Holdings or the Borrower relating to Holdings or the Borrower or its business, other than any such information that is available to the Agent, the Issuing Bank or any Lender on a
nonconfidential basis prior to disclosure by Holdings or the Borrower; provided that, in the case of information received from Holdings or the Borrower after the date hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential information. 
  
 SECTION 9.13. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any time the interest rate applicable to any Loan,
together with all fees, charges and other amounts which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by the Lender holding such Loan in accordance with applicable law, the rate of interest payable in respect of such Loan hereunder, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would have been payable in respect of such Loan but were not payable as a result of the operation of this Section shall be cumulated and the interest and Charges
payable to such Lender in respect of other Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall
have been received by such Lender. 
  

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 SECTION 9.14. Termination or Release. (a) At such time as the Loans, the Borrower’s
obligations to reimburse the Issuing Bank pursuant to Section 2.05(e) for LC Disbursements, all accrued interest and fees under this Agreement, and all other obligations under the Loan Documents (other than (i) obligations under
Sections 2.15, 2.17 and 9.03 that are not then due and payable and (ii) obligations in respect of outstanding Letters of Credit) shall have been paid in full in cash, the Commitments have been terminated and all Letters of Credit shall
have been discharged or cash collateralized to the reasonable satisfaction of the Agent and Issuing Bank (each of which shall have confirmed such satisfaction by written notice to the Borrower), the Collateral shall be released from the Liens
created by the Security Documents, and the obligations (other than those expressly stated to survive termination) of the Agent and each Loan Party under the Security Documents shall terminate, all without delivery of any instrument or performance of
any act by any Person. 
  
 (b) A Subsidiary Loan Party shall
automatically be released from its obligations under the Collateral Agreement and the security interests in the Collateral of such Subsidiary Loan Party shall be automatically released upon the consummation of any transaction permitted by this
Agreement as a result of which such Subsidiary Loan Party ceases to be a Subsidiary of the Borrower or is designated an Unrestricted Subsidiary. 
  
 (c) Upon any sale or other transfer by any Loan Party of any Collateral that is permitted under this Agreement to any Person that is not a Loan Party, or
upon the effectiveness of any written consent to the release of the security interest granted by the Collateral Agreement in any Collateral pursuant to Section 9.02 of this Agreement, the security interest in such Collateral shall be
automatically released. 
  
 (d) In connection with any termination
or release pursuant to paragraph (a), (b) or (c) of this Section 9.14, the Collateral Agent shall execute and deliver to any Loan Party at such Loan Party’s expense all documents that such Loan Party shall reasonably request
to evidence such termination or release. Any execution and delivery of documents pursuant to this Section 9.14 shall be without recourse to or warranty by the Collateral Agent or any Lender. 
  
 SECTION 9.15. USA Patriot Act. Each Lender that is subject to the
requirements of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”) hereby notifies Borrower that pursuant to the requirements of the Patriot Act, it is required to
obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender to identify the Borrower in accordance with the Patriot Act.

  

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

			
	HAWAIIAN TELCOM COMMUNICATIONS, INC.,
		
	by	 	 /s/ Michael S. Ruley

	 	 	 Name:

	 	 	 Title:

	
	 HAWAIIAN TELCOM HOLDCO, INC.,

		
	by	 	 /s/ Michael S. Ruley

	 	 	 Name:

	 	 	 Title:

  

 118 

			
	JPMORGAN CHASE BANK, N.A., individually and as Administrative Agent,
		
	by	 	 /s/ John Kowalczuk

	 	 	 Name: John Kowalczuk

	 	 	 Title: Vice President

  

 119 

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	 ABN AMRO Bank N.V.

			
		
	by	 	 /s/ Frances O’ R. Logan

	 	 	 Name: Frances O’ R. Logan

	 	 	 Title: Managing Director

		
	by	 	 /s/ Shilpa Parandekar

	 	 	 Name: Shilpa Parandekar

	 	 	 Title: Vice President

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	 LEHMAN COMMERCIAL PAPER INC.

			
		
	by	 	 /s/ Frank P. Turner

	 	 	 Name: Frank P. Turner

	 	 	 Title: Vice President

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	 CoBank, ACB

			
		
	by	 	 /s/ Ted Koerner

	 	 	 Name: Ted Koerner

	 	 	 Title: Vice President

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	 Goldman Sachs Credit Partners L.P.

			
		
	by	 	 /s/ William Archer

	 	 	 Name: William Archer

	 	 	 Title: Authorized Signatory

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	Wachovia Bank, N.A.

			
		
	by	 	 /s/ Franklin M. Wessinger

	 	 	 Name: Franklin M. Wessinger

	 	 	 Title: Managing Director

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	Mizuho Corporate Bank, Ltd.

			
		
	by	 	 /s/ Kiyoshi Miyake

	 	 	 Name: Kiyoshi Miyake

	 	 	 Title: Deputy General Manager

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	THE NORINCHUKIN TRUST AND BANKING CO., LTD., acting as Trustee for Trust Account No. 430000-65

			
		
	by	 	 /s/ Kenichi Hara

	 	 	 Name: Kenichi Hara

	 	 	 Title: President

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	Sunitomo Mitsui Banking Corporation

			
		
	by	 	 /s/ Yoshihiro Hyakutome

	 	 	 Name: Yoshihiro Hyakutome

	 	 	 Title: Deputy General Manager

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	FIRST HAWAIIAN BANK

			
		
	by	 	 /s/ Jeffrey N. Higashi

	 	 	 Name: Jeffrey N. Higashi

	 	 	 Title: Vice President

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	COOPERATIVE CENTRALE RAIFFEISEN - BOERENLEEN BANK B.A., “RABOBANK INTERNATIONAL NEW YORK BRANCH”

			
		
	by	 	 /s/ Michael R. Phelan

	 	 	 Name: Michael R. Phelan

	 	 	 Title: Executive Director

		
	by	 	 /s/ Brett Delfino

	 	 	 Name: Brett Delfino

	 	 	 Title: Executive Director

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	 Bank of Hawaii

			
		
	by	 	 /s/ Luke Yeh

	 	 	 Name: Luke Yeh

	 	 	 Title: Bank of Hawaii

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	 FIRSTRUST BANK

			
		
	by	 	 /s/ Bryan T. Denney

	 	 	 Name: Bryan T. Denney

	 	 	 Title: Vice President

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	American Savings Bank, F.S.B.

			
		
	by	 	 (illegible)

	 	 	 Name:

	 	 	 Title: Vice President

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	Hawaii National Bank, a national banking association

			
		
	by	 	 /s/ Michael K. Kawamoto

	 	 	 Name: Michael K. Kawamoto

	 	 	 Title: Executive Vice President

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	NATEXIS BANQUES POPULAIRES

			
		
	by	 	 /s/ Cynthia E. Sachs

	 	 	 Name: CYNTHIA E. SACHS

	 	 	 Title: GROUP MANAGER

		
	by	 	 /s/ Elizabeth A. Harker

	 	 	 Name: ELIZABETH A. HARKER

	 	 	 Title: Vice President

			
	SIGNATURE PAGE TO THE CREDIT AGREEMENT AMONG HAWAIIAN TELCOM HOLDCO, INC., HAWAIIAN TELCOM COMMUNICATIONS, INC., THE LENDERS PARTY THERETO AND JPMORGAN CHASE BANK, N.A., AS
ADMINISTRATIVE AGENT
		
	 Name of Lender:
	 	Bayerische Hypo—und Vereinsbank AG New York Branch

			
		
	by	 	 /s/ Sven Schuessler

	 	 	 Name: Sven Schuessler

	 	 	 Title: Associate Director

		
	by	 	 /s/ Mario Caicedo

	 	 	 Name: Mario Caicedo

	 	 	 Title: Senior AssociateGuarantee and Collateral Agreement, dated as of May 2, 2005

 Exhibit 10.2 
  
 EXECUTION COPY 
  

  
 GUARANTEE AND COLLATERAL AGREEMENT

  
 dated as of 
  
 May 2, 2005 
  
 among 
  
 HAWAIIAN TELCOM HOLDCO, INC., 
  
 HAWAIIAN TELCOM COMMUNICATIONS, INC., 
  
 THE SUBSIDIARIES OF HAWAIIAN TELCOM COMMUNICATIONS, INC. 
 IDENTIFIED HEREIN 
  
 and

  
 JPMORGAN CHASE BANK, N.A., 
  
 as Collateral Agent 
  

 TABLE OF CONTENTS 
  

					
	ARTICLE I
	
	Definitions
			
	 SECTION 1.01.
	  	 Credit Agreement
	  	1
			
	 SECTION 1.02.
	  	 Other Defined Terms
	  	1
	
	ARTICLE II
	
	Guarantee
			
	 SECTION 2.01.
	  	 Guarantee
	  	5
			
	 SECTION 2.02.
	  	 Guarantee of Payment
	  	5
			
	 SECTION 2.03.
	  	 No Limitations
	  	5
			
	 SECTION 2.04.
	  	 Reinstatement
	  	6
			
	 SECTION 2.05.
	  	 Agreement To Pay; Subrogation
	  	6
			
	 SECTION 2.06.
	  	 Information
	  	7
	
	ARTICLE III
	
	Pledge of Securities
			
	 SECTION 3.01.
	  	 Pledge
	  	7
			
	 SECTION 3.02.
	  	 Delivery of the Pledged Collateral
	  	8
			
	 SECTION 3.03.
	  	 Representations, Warranties and Covenants
	  	8
			
	 SECTION 3.04.
	  	 Certification of Limited Liability Company and Limited Partnership Interests
	  	9
			
	 SECTION 3.05.
	  	 Registration in Nominee Name; Denominations
	  	10
			
	 SECTION 3.06.
	  	 Voting Rights; Dividends and Interest
	  	10

					
	ARTICLE IV
	
	Security Interests in Personal Property
			
	 SECTION 4.01.
	  	 Security Interest
	  	12
			
	 SECTION 4.02.
	  	 Representations and Warranties
	  	14
			
	 SECTION 4.03.
	  	 Covenants
	  	15
			
	 SECTION 4.04.
	  	 Other Actions
	  	19
			
	 SECTION 4.05.
	  	 Covenants Regarding Patent, Trademark and Copyright Collateral
	  	20
	
	ARTICLE V
	
	Remedies
			
	 SECTION 5.01.
	  	 Remedies Upon Default
	  	22
			
	 SECTION 5.02.
	  	 Application of Proceeds
	  	23
			
	 SECTION 5.03.
	  	 Grant of License to Use Intellectual Property
	  	24
			
	 SECTION 5.04.
	  	 Securities Act
	  	24
			
	 SECTION 5.05.
	  	 Registration
	  	25
	
	ARTICLE VI
	
	Indemnity, Subrogation and Subordination
			
	 SECTION 6.01.
	  	 Indemnity and Subrogation
	  	26
			
	 SECTION 6.02.
	  	 Contribution and Subrogation
	  	26
			
	 SECTION 6.03.
	  	 Subordination
	  	27
	
	ARTICLE VII
	
	Miscellaneous
			
	 SECTION 7.01.
	  	 Notices
	  	27
			
	 SECTION 7.02.
	  	 Waivers; Amendment
	  	27
			
	 SECTION 7.03.
	  	 Collateral Agent’s Fees and Expenses; Indemnification
	  	28
			
	 SECTION 7.04.
	  	 Successors and Assigns
	  	28

					
	 SECTION 7.05.
	  	 Survival of Agreement
	  	28
			
	 SECTION 7.06.
	  	 Counterparts; Effectiveness; Several Agreement
	  	29
			
	 SECTION 7.07.
	  	 Severability
	  	29
			
	 SECTION 7.08.
	  	 Right of Set-Off
	  	29
			
	 SECTION 7.09.
	  	 Governing Law; Jurisdiction; Consent to Service of Process
	  	30
			
	 SECTION 7.10.
	  	 WAIVER OF JURY TRIAL
	  	30
			
	 SECTION 7.11.
	  	 Headings
	  	31
			
	 SECTION 7.12.
	  	 Security Interest Absolute
	  	31
			
	 SECTION 7.13.
	  	 Termination or Release
	  	31
			
	 SECTION 7.14.
	  	 Additional Subsidiaries
	  	32
			
	 SECTION 7.15.
	  	 Collateral Agent Appointed Attorney-in-Fact
	  	32
			
	 SECTION 7.16.
	  	 Compliance with Laws
	  	33

			
	Schedules	  	 
		
	 Schedule I
	  	 Subsidiary Loan Parties

	 Schedule II
	  	 Pledged Stock; Debt Securities

	 Schedule III
	  	 Intellectual Property

		
	Exhibits	  	 
		
	 Exhibit I
	  	 Form of Supplement

	 Exhibit II
	  	 Form of Perfection Certificate

 GUARANTEE AND COLLATERAL AGREEMENT dated as of May 2, 2005, among HAWAIIAN TELCOM HOLDCO, INC.,
HAWAIIAN TELCOM COMMUNICATIONS, INC., the Subsidiaries of HAWAIIAN TELCOM COMMUNICATIONS, INC. identified herein and JPMORGAN CHASE BANK, N.A., as Collateral Agent. 
  
 Reference is made to the Credit Agreement dated as of May 2, 2005 (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”), among Hawaiian Telcom Communications, Inc. (the “Borrower”), Hawaiian Telcom Holdco, Inc. (“Holdings”), the Lenders party thereto and JPMorgan Chase Bank,
N.A., as Administrative Agent. The Lenders have agreed to extend credit to the Borrower subject to the terms and conditions set forth in the Credit Agreement. The obligations of the Lenders to extend such credit are conditioned upon, among other
things, the execution and delivery of this Agreement. Holdings and the Subsidiary Loan Parties are affiliates of the Borrower, will derive substantial benefits from the extension of credit to the Borrower pursuant to the Credit Agreement and are
willing to execute and deliver this Agreement in order to induce the Lenders to extend such credit. Accordingly, the parties hereto agree as follows: 
  
 ARTICLE I 
  
 Definitions 
  
 SECTION 1.01. Credit Agreement. (a) Capitalized terms used in this Agreement and not otherwise defined herein have the meanings specified in the Credit Agreement. All terms defined in the New York UCC (as defined herein) and not
defined in this Agreement have the meanings specified therein; the term “instrument” shall have the meaning specified in Article 9 of the New York UCC. 
  
 (b) The rules of construction specified in Section 1.03 of the Credit Agreement also apply to this Agreement.

  
 SECTION 1.02. Other Defined Terms. As used in this
Agreement, the following terms have the meanings specified below: 
  
 “Account Debtor” means any Person who is or who may become obligated to any Grantor under, with respect to or on account of an Account. 
  
 “Acquisition Agreement” means the Amended and Restated Agreement of Merger dated as of April 8, 2005,
among GTE Corporation, Verizon HoldCo LLC, Holdings and the Borrower. 
  
 “Article 9 Collateral” has the meaning assigned to such term in Section 4.01. 
  
 “Collateral” means Article 9 Collateral and Pledged Collateral. 
  

 1 

 “Communications Act” means the Communications Act of 1934 and any successor Federal
statute, and the rules, regulations and published policies of the FCC thereunder, all as amended and in effect from time to time. 
  
 “Copyright License” means any written agreement, now or hereafter in effect, granting any right to any third party under any copyright
now or hereafter owned by any Grantor or that such Grantor otherwise has the right to license, or granting any right to any Grantor under any copyright now or hereafter owned by any third party, and all rights of such Grantor under any such
agreement. 
  
 “Copyrights” means all of the
following now owned or hereafter acquired by any Grantor: (a) all copyright rights in any work subject to the copyright laws of the United States or any other country, whether as author, assignee, transferee or otherwise, and (b) all
registrations and applications for registration of any such copyright in the United States or any other country, including registrations, recordings, supplemental registrations and pending applications for registration in the United States Copyright
Office, including those listed on Schedule III. 
  
 “Credit Agreement” has the meaning assigned to such term in the preliminary statement of this Agreement. 
  
 “FCC” means the Federal Communications Commission and any successor agency of the Federal government administering the Communications
Act. 
  
 “FCC Licenses” means all licenses,
certificates, permits or other authorizations granted by the FCC pursuant to the Communications Act which are required for the conduct of any business or activity subject thereto. 
  
 “Federal Securities Laws” has the meaning assigned to such term in Section 5.04. 
  
 “General Intangibles” means all choses in action and causes
of action and all other intangible personal property of every kind and nature (other than Accounts) now owned or hereafter acquired by any Grantor, including corporate or other business records, indemnification claims, contract rights (including
rights under leases, whether entered into as lessor or lessee, Swap Agreements, the Acquisition Agreement, the Verizon Agreements and other agreements), FCC Licenses, Intellectual Property, goodwill, registrations, franchises, tax refund claims and
any letter of credit, guarantee, claim, security interest or other security held by or granted to any Grantor to secure payment by an Account Debtor of any of the Accounts. 
  
 “Grantors” means Holdings, the Borrower and the Granting Subsidiaries. 
  
 “Granting Subsidiaries” means each Subsidiary Loan Party
other than Hawaiian Telcom, Inc. 
  
 “Guarantors”
means Holdings and the Subsidiary Loan Parties. 
  

 2 

 “Intellectual Property” means all intellectual and similar property of every kind and
nature now owned or hereafter acquired by any Grantor, including inventions, designs, Patents, Copyrights, Licenses, Trademarks, trade secrets, confidential or proprietary technical and business information, know-how, show-how or other data or
information, software and databases and all embodiments or fixations thereof and related documentation, registrations and franchises, and all additions, improvements and accessions to, and books and records describing or used in connection with, any
of the foregoing. 
  
 “License” means any Patent
License, Trademark License, Copyright License or other license or sublicense agreement to which any Grantor is a party. 
  
 “Loan Document Obligations” means (a) the due and punctual payment by the Borrower of (i) the unpaid principal of and interest
(including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding) on the Loans, when and as due, whether at maturity, by
acceleration, upon one or more dates set for prepayment or otherwise, (ii) each payment required to be made by the Borrower under the Credit Agreement in respect of any Letter of Credit, when and as due, including payments in respect of
reimbursement of disbursements, interest thereon and obligations to provide cash collateral, and (iii) all other monetary obligations of the Borrower to any of the Secured Parties under the Credit Agreement and each of the other Loan Documents,
including obligations to pay fees, expense reimbursement obligations and indemnification obligations, whether primary, secondary, direct, contingent, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy,
insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), (b) the due and punctual performance of all other obligations of the Borrower under or pursuant to the Credit Agreement and
each of the other Loan Documents, and (c) the due and punctual payment and performance of all the obligations of each other Loan Party under or pursuant to this Agreement and each of the other Loan Documents. 
  
 “New York UCC” means the Uniform Commercial Code as from
time to time in effect in the State of New York. 
  
 “Obligations” means (a) Loan Document Obligations and (b) the due and punctual payment and performance of all obligations of each Loan Party under each Swap Agreement that (i) is in effect on the Effective
Date with a counterparty that is a Lender or an Affiliate of a Lender as of the Effective Date or (ii) is entered into after the Effective Date with any counterparty that is a Lender or an Affiliate of a Lender at the time such Swap Agreement
is entered into, provided, that for purposes of this Agreement, the amount of any obligations under any Swap Agreement shall be reduced by the amount of cash deposits, if any, securing the Swap Agreement and which are held by the counterparty
to such Swap Agreement. 
  
 “Patent License”
means any written agreement, now or hereafter in effect, granting to any third party any right to make, use or sell any invention on which a patent, 

  

 3 

 
now or hereafter owned by any Grantor or that any Grantor otherwise has the right to license, is in existence, or granting to any Grantor any right to make,
use or sell any invention on which a patent, now or hereafter owned by any third party, is in existence, and all rights of any Grantor under any such agreement. 
  

“Patents” means all of the following now owned or hereafter acquired by any Grantor: (a) all letters patent of the United States
or the equivalent thereof in any other country, all registrations and recordings thereof, and all applications for letters patent of the United States or the equivalent thereof in any other country, including registrations, recordings and pending
applications in the United States Patent and Trademark Office or any similar offices in any other country, including those listed on Schedule III, and (b) all reissues, continuations, divisions, continuations-in-part, renewals or
extensions thereof, and the inventions disclosed or claimed therein, including the right to make, use and/or sell the inventions disclosed or claimed therein. 
  

“Perfection Certificate” means a certificate substantially in the form of Exhibit II, completed and supplemented with the
schedules and attachments contemplated thereby, and duly executed by a Financial Officer and the chief legal officer of the Borrower. 
  
 “Pledged Collateral” has the meaning assigned to such term in Section 3.01. 
  
 “Pledged Debt Securities” has the meaning assigned to such
term in Section 3.01. 
  
 “Pledged
Securities” means any promissory notes, stock certificates or other certificated securities now or hereafter included in the Pledged Collateral, including all certificates, instruments or other documents representing or evidencing any
Pledged Collateral. 
  
 “Pledged Stock” has the
meaning assigned to such term in Section 3.01. 
  
 “Proceeds” has the meaning specified in Section 9-102 of the New York UCC. 
  
 “Secured Parties” means (a) the Lenders, (b) the Collateral Agent, (c) the Issuing Bank, (d) each counterparty to any
Swap Agreement with a Loan Party the obligations under which constitute Obligations, (e) the beneficiaries of each indemnification obligation undertaken by any Loan Party under any Loan Document and (f) the permitted successors and assigns
of each of the foregoing. 
  
 “Security Interest”
has the meaning assigned to such term in Section 4.01. 
  
 “Subsidiary Loan Parties” means (a) the Subsidiaries identified on Schedule I and (b) each other Subsidiary that becomes a party to this Agreement as a Subsidiary Loan Party after the Effective Date.

  

 4 

 “Trademark License” means any written agreement, now or hereafter in effect, granting to
any third party any right to use any trademark now or hereafter owned by any Grantor or that any Grantor otherwise has the right to license, or granting to any Grantor any right to use any trademark now or hereafter owned by any third party, and all
rights of any Grantor under any such agreement. 
  
 “Trademarks” means all of the following now owned or hereafter acquired by any Grantor: (a) all trademarks, service marks, trade names, corporate names, company names, business names, fictitious business names, trade
styles, trade dress, logos, other source or business identifiers, designs and general intangibles of like nature, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all registration and recording
applications filed in connection therewith (excluding intent-to-use applications), including registrations and registration applications in the United States Patent and Trademark Office (excluding intent-to-use applications) or any similar offices
in any State of the United States or any other country or any political subdivision thereof, and all extensions or renewals thereof, including those listed on Schedule III, (b) all goodwill associated therewith or symbolized thereby and
(c) all other assets, rights and interests that uniquely reflect or embody such goodwill. 
  
 ARTICLE II 
  
 Guarantee

  
 SECTION 2.01. Guarantee. Each Guarantor
unconditionally guarantees, jointly with the other Guarantors and severally the due and punctual payment and performance of the Obligations. Each of the Guarantors further agrees that the Obligations may be extended or renewed, in whole or in part,
without notice to or further assent from it, and that it will remain bound upon its guarantee notwithstanding any extension or renewal of any Obligation. Each of the Guarantors waives presentment to, demand of payment from and protest to the
Borrower or any other Loan Party of any of the Obligations, and also waives notice of acceptance of its guarantee and notice of protest for nonpayment. 
  
 SECTION 2.02. Guarantee of Payment. Each of the Guarantors further agrees that its guarantee hereunder constitutes a guarantee of payment when due
and not of collection, and waives any right to require that any resort be had by the Collateral Agent or any other Secured Party to any security held for the payment of the Obligations or to any balance of any deposit account or credit on the books
of the Collateral Agent or any other Secured Party in favor of the Borrower or any other Person. 
  
 SECTION 2.03. No Limitations. (a) Except for termination of a Guarantor’s obligations hereunder as expressly provided in
Section 7.13, the obligations of each Guarantor hereunder shall not be subject to any reduction, limitation, impairment or termination for any reason, including any claim of waiver, release, surrender, alteration or compromise, and shall not be
subject to any defense or set-off, counterclaim, recoupment or termination whatsoever by reason of the invalidity, illegality or unenforceability of the Obligations or otherwise (other than defense of payment or 

  

 5 

 
performance). Without limiting the generality of the foregoing, the obligations of each Guarantor hereunder, to the fullest extent permitted by applicable
law, shall not be discharged or impaired or otherwise affected by (i) the failure of the Collateral Agent or any other Secured Party to assert any claim or demand or to enforce any right or remedy under the provisions of any Loan Document or
otherwise; (ii) any rescission, waiver, amendment or modification of, or any release from any of the terms or provisions of, any Loan Document or any other agreement, including with respect to any other Guarantor under this Agreement;
(iii) the release of any security held by the Collateral Agent or any other Secured Party for the Obligations or any of them; (iv) any default, failure or delay, wilful or otherwise, in the performance of the Obligations; or (v) any
other act or omission that may or might in any manner or to any extent vary the risk of any Guarantor or otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than the payment in full in cash or immediately available
funds of all the Obligations). Each Guarantor expressly authorizes the Secured Parties to take and hold security for the payment and performance of the Obligations, to exchange, waive or release any or all such security (with or without
consideration), to enforce or apply such security and direct the order and manner of any sale thereof in their sole discretion or to release or substitute any one or more other guarantors or obligors upon or in respect of the Obligations, all
without affecting the obligations of any Guarantor hereunder. 
  
 (b) To the fullest extent permitted by applicable law, each Guarantor waives any defense based on or arising out of any defense of the Borrower or any other Loan Party or the unenforceability of the Obligations or any part thereof from any
cause, or the cessation from any cause of the liability of the Borrower or any other Loan Party, other than the payment in full in cash or immediately available funds of all the Obligations (other than indemnification obligations for which no claim
giving rise thereto has been asserted). The Collateral Agent and the other Secured Parties may, at their election, foreclose on any security held by one or more of them by one or more judicial or nonjudicial sales, accept an assignment of any such
security in lieu of foreclosure, compromise or adjust any part of the Obligations, make any other accommodation with the Borrower or any other Loan Party or exercise any other right or remedy available to them against the Borrower or any other Loan
Party, without affecting or impairing in any way the liability of any Guarantor hereunder except to the extent the Obligations have been paid in full in cash or immediately available funds. To the fullest extent permitted by applicable law, each
Guarantor waives any defense arising out of any such election even though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against the
Borrower or any other Loan Party, as the case may be, or any security. 
  
 SECTION 2.04. Reinstatement. Each of the Guarantors agrees that its guarantee hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of any Obligation is rescinded
or must otherwise be restored by the Collateral Agent or any other Secured Party upon the bankruptcy or reorganization of the Borrower, any other Loan Party or otherwise. 
  
 SECTION 2.05. Agreement To Pay; Subrogation. In furtherance of the foregoing and not in limitation of any other right
that the Collateral Agent or any other 

  

 6 

 
Secured Party has at law or in equity against any Guarantor by virtue hereof, upon the failure of the Borrower or any other Loan Party to pay any Obligation
when and as the same shall become due, whether at maturity, by acceleration, after notice of prepayment or otherwise, each Guarantor hereby promises to and will forthwith pay, or cause to be paid, to the Collateral Agent for distribution to the
applicable Secured Parties in cash the amount of such unpaid Obligation. Upon payment by any Guarantor of any sums to the Collateral Agent as provided above, all rights of such Guarantor against the Borrower or any other Loan Party arising as a
result thereof by way of right of subrogation, contribution, reimbursement, indemnity or otherwise shall in all respects be subject to Article VI. 
  
 SECTION 2.06. Information. Each Guarantor assumes all responsibility for being and keeping itself informed of the Borrower’s and each other
Loan Party’s financial condition and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent of the risks that such Guarantor assumes and incurs hereunder, and agrees that
none of the Collateral Agent or the other Secured Parties will have any duty to advise such Guarantor of information known to it or any of them regarding such circumstances or risks. 
  
 ARTICLE III 
  
 Pledge of Securities 
  
 SECTION 3.01. Pledge. As security for the payment or performance, as the case may be, in full of the Obligations, each Grantor hereby assigns and
pledges to the Collateral Agent, its successors and assigns, for the ratable benefit of the Secured Parties, and hereby grants to the Collateral Agent, its successors and assigns, for the ratable benefit of the Secured Parties, a security interest
in, all of such Grantor’s right, title and interest in, to and under (a) the shares of capital stock and other Equity Interests of the Borrower and each Subsidiary owned by it and listed on Schedule II and any other Equity Interests
or the Borrower and each Subsidiary obtained in the future by such Grantor and the certificates representing all such Equity Interests (the “Pledged Stock”); provided that the Pledged Stock shall not include (i) more
than 65% of the issued and outstanding voting Equity Interests of any “first tier” Foreign Subsidiary directly owned by such Grantor, (ii) to the extent applicable law requires that a subsidiary of such Grantor issue directors’
qualifying shares, such qualifying shares and (iii) any Equity Interests described in Section 5.12(c)(iii) of the Credit Agreement; (b)(i) the debt securities listed opposite the name of such Grantor on Schedule II, (ii) any
debt securities in the future issued to such Grantor by Holdings, the Borrower or any Subsidiary and (iii) the certificates, promissory notes and any other instruments evidencing such debt securities (the “Pledged Debt
Securities”); (c) all other property that may be delivered to and held by the Collateral Agent pursuant to the terms of this Section 3.01; (d) subject to Section 3.06, all payments of principal or interest, dividends,
cash, instruments and other property from time to time received, receivable or otherwise distributed in respect of, in exchange for or upon the conversion of, and all other Proceeds received in respect of, the securities referred to in
clauses (a) and (b) above; (e) subject to Section 3.06, all rights and privileges of such Grantor with respect to the securities and other property referred to 

  

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in clauses (a), (b), (c) and (d) above; and (f) all Proceeds of any of the foregoing (the items referred to in clauses (a) through
(f) above being collectively referred to as the “Pledged Collateral”). 
  
 TO HAVE AND TO HOLD the Pledged Collateral, together with all right, title, interest, powers, privileges and preferences pertaining or incidental thereto, unto the Collateral Agent, its successors and assigns, for the
ratable benefit of the Secured Parties, forever; subject, however, to the terms, covenants and conditions hereinafter set forth. 
  
 SECTION 3.02. Delivery of the Pledged Collateral. (a) Each Grantor agrees promptly to deliver or cause to be delivered to the Collateral Agent
any and all Pledged Securities. 
  
 (b) Each Grantor will cause
any Indebtedness for borrowed money owed to such Grantor by Holdings, the Borrower or any Subsidiary to be evidenced by a duly executed promissory note that is pledged and delivered to the Collateral Agent pursuant to the terms hereof. 

 
 (c) Upon delivery to the Collateral Agent, (i) any Pledged Securities
shall be accompanied by stock powers or note powers, as applicable, duly executed in blank or other instruments of transfer reasonably satisfactory to the Collateral Agent and by such other instruments and documents as the Collateral Agent may
reasonably request and (ii) all other property comprising part of the Pledged Collateral delivered pursuant to the terms of this Agreement shall be accompanied, to the extent necessary or reasonably required to perfect the security interest in
or allow realization on the Pledged Collateral, by proper instruments of assignment duly executed by the applicable Grantor and such other instruments or documents as the Collateral Agent may reasonably request. Each delivery of Pledged Securities
shall be accompanied by a schedule describing the securities, which schedule shall be attached hereto as Schedule II and made a part hereof; provided that failure to attach any such schedule hereto shall not affect the validity of such
pledge of such Pledged Securities. Each schedule so delivered shall supplement any prior schedules so delivered. 
  
 SECTION 3.03. Representations, Warranties and Covenants. The Grantors jointly and severally represent, warrant and covenant to and with the
Collateral Agent, for the benefit of the Secured Parties, that: 
  
 (a) Schedule II correctly sets forth the percentage of the issued and outstanding shares of each class of the Equity Interests of the issuer thereof represented by the Pledged Stock and includes all Equity Interests, debt securities
and promissory notes or other instruments evidencing Indebtedness required to be pledged hereunder in order to satisfy the Collateral and Guarantee Requirement; 
  

(b) the Pledged Stock and Pledged Debt Securities have been duly and validly authorized and issued by the issuers thereof and (i) in the case of
Pledged Stock, are fully paid and nonassessable and (ii) in the case of Pledged Debt Securities, are legal, valid and binding obligations of the issuers thereof; 
  

 8 

 (c) except for the security interests granted hereunder, each of the Grantors (i) is and, subject to
any transfers made in compliance with the Credit Agreement, will continue to be the direct owner, beneficially and of record, of the Pledged Securities indicated on Schedule II as owned by such Grantor, (ii) holds the same free and clear
of all Liens, other than Liens created by this Agreement, Permitted Encumbrances and transfers made in compliance with the Credit Agreement, (iii) will make no assignment, pledge, hypothecation or transfer of, or create or permit to exist any
security interest in or other Lien on, the Pledged Collateral, other than Liens created by this Agreement, Permitted Encumbrances and transfers made in compliance with the Credit Agreement, and (iv) subject to any right of such Grantor under
the Loan Documents to dispose of Pledged Collateral, will use commercially reasonable efforts to defend its title or interest thereto or therein against any and all Liens (other than the Lien created by this Agreement and Permitted Encumbrances),
however, arising, of all Persons whomsoever; 
  
 (d) except for
restrictions and limitations imposed by the Loan Documents or securities laws generally, the Pledged Collateral is and will continue to be freely transferable and assignable, and none of the Pledged Collateral (other than limited liability company
or partnership interests) is or will be subject to any option, right of first refusal, shareholders agreement, charter or by-law provisions or contractual restriction of any nature that might prohibit, impair, delay or otherwise affect the pledge of
such Pledged Collateral hereunder, the sale or disposition thereof pursuant hereto or the exercise by the Collateral Agent of rights and remedies hereunder; 
  
 (e) each of the Grantors has the power and authority to pledge the Pledged Collateral pledged by it hereunder in the manner hereby done or contemplated;

  
 (f) no consent or approval of any Governmental Authority, any
securities exchange or any other Person was or is necessary to the validity of the pledge effected hereby (other than such as have been obtained and are in full force and effect); 
  
 (g) by virtue of the execution and delivery by the Grantors of this Agreement, when any Pledged Securities are delivered to
the Collateral Agent in accordance with this Agreement, the Collateral Agent will obtain a legal, valid and perfected first priority lien upon and security interest in such Pledged Securities as security for the payment and performance of the
Obligations; and 
  
 (h) the pledge effected hereby is effective
to vest in the Collateral Agent, for the benefit of the Secured Parties, the rights of the Collateral Agent in the Pledged Collateral as set forth herein. 
  
 SECTION 3.04. Certification of Limited Liability Company and Limited Partnership Interests. Each interest in any limited liability company or
limited partnership controlled by any Grantor and pledged hereunder shall be represented by a certificate, shall be a “security” within the meaning of Article 8 of the New York UCC and shall be governed by Article 8 of the New
York UCC. 
  

 9 

 SECTION 3.05. Registration in Nominee Name; Denominations. The Collateral Agent, on behalf of the
Secured Parties, shall have the right (in its sole and absolute discretion) to hold the Pledged Securities in its own name as pledgee or the name of its nominee (as pledgee or as sub-agent) if an Event of Default shall have occurred and be
continuing or in the name of the applicable Grantor, endorsed or assigned in blank or in favor of the Collateral Agent. Each Grantor will promptly give to the Collateral Agent copies of any notices or other communications received by it with respect
to Pledged Securities registered in the name of such Grantor. If an Event of Default shall have occurred and be continuing the Collateral Agent shall have the right to exchange the certificates representing Pledged Securities for certificates of
smaller or larger denominations for any purpose consistent with this Agreement. 
  
 SECTION 3.06. Voting Rights; Dividends and Interest. (a) Unless and until an Event of Default shall have occurred and be continuing and the Collateral Agent shall have given notice to the Grantors that
their rights under this Section 3.06 are being suspended: 
  
 (i) Each Grantor shall be entitled to exercise any and all voting and/or other consensual rights and powers inuring to an owner of Pledged Securities or any part thereof for any purpose consistent with the terms of
this Agreement, the Credit Agreement and the other Loan Documents; provided that such rights and powers shall not be exercised in any manner that could materially and adversely affect the rights inuring to a holder of any Pledged Securities
or the rights and remedies of any of the Collateral Agent or the other Secured Parties under this Agreement or the Credit Agreement or any other Loan Document or the ability of the Secured Parties to exercise the same. 
  
 (ii) The Collateral Agent shall execute and deliver to each
Grantor, or cause to be executed and delivered to such Grantor, all such proxies, powers of attorney and other instruments as such Grantor may reasonably request for the purpose of enabling such Grantor to exercise the voting and/or consensual
rights and powers it is entitled to exercise pursuant to subparagraph (i) above. 
  
 (iii) Each Grantor shall be entitled to receive and retain any and all dividends, interest, principal and other distributions paid on or
distributed in respect of the Pledged Securities to the extent and only to the extent that such dividends, interest, principal and other distributions are permitted by, and otherwise paid or distributed in accordance with, the terms and conditions
of the Credit Agreement, the other Loan Documents and applicable laws; provided that any noncash dividends, interest, principal or other distributions that would constitute Pledged Stock or Pledged Debt Securities, whether resulting from a
subdivision, combination or reclassification of the outstanding Equity Interests of the issuer of any Pledged Securities or received in exchange for Pledged Securities or any part thereof, or in redemption thereof, or as a result of any merger,
consolidation, acquisition or other exchange of assets to which such issuer may be a party or otherwise, shall be and become part of the Pledged Collateral, and, if received by any Grantor, shall not be commingled by such 

  

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Grantor with any of its other funds or property but shall be held separate and apart therefrom, shall be held in trust for the benefit of the Collateral
Agent and shall be forthwith delivered to the Collateral Agent in the same form as so received (with any necessary endorsement). 
  
 (b) Upon the occurrence and during the continuance of an Event of Default, after the Collateral Agent shall have notified the Grantors of the suspension
of their rights under this Section 3.06, all rights of any Grantor to dividends, interest, principal or other distributions that such Grantor is authorized to receive pursuant to paragraph (a)(iii) of this Section 3.06 shall cease,
and all such rights shall thereupon become vested in the Collateral Agent, which shall have the sole and exclusive right and authority to receive and retain such dividends, interest, principal or other distributions. All dividends, interest,
principal or other distributions received by any Grantor contrary to the provisions of this Section 3.06 shall be held in trust for the benefit of the Collateral Agent, shall be segregated from other property or funds of such Grantor and shall
be forthwith delivered to the Collateral Agent upon demand in the same form as so received (with any necessary endorsement). Any and all money and other property paid over to or received by the Collateral Agent pursuant to the provisions of this
paragraph (b) shall be retained by the Collateral Agent in an account to be established by the Collateral Agent upon receipt of such money or other property and shall be applied in accordance with the provisions of Section 5.02. After all
Events of Default have been cured or waived and the Borrower has delivered to the Collateral Agent a certificate to that effect, the Collateral Agent shall, promptly repay to each Grantor (without interest) all dividends, interest, principal or
other distributions that such Grantor would otherwise be permitted to retain pursuant to the terms of paragraph (a)(iii) of this Section 3.06 and that remain in such account. 
  
 (c) Upon the occurrence and during the continuance of an Event of Default, after the Collateral Agent shall have notified
the Grantors of the suspension of their rights under this Section 3.06, all rights of any Grantor to exercise the voting and consensual rights and powers it is entitled to exercise pursuant to paragraph (a)(i) of this Section 3.06,
and the obligations of the Collateral Agent under paragraph (a)(ii) of this Section 3.06, shall cease, and all such rights shall thereupon become vested in the Collateral Agent, which shall have the sole and exclusive right and authority
to exercise such voting and consensual rights and powers; provided that, unless otherwise directed by the Required Lenders, the Collateral Agent shall have the right from time to time following and during the continuance of an Event of
Default to permit the Grantors to exercise such rights. After all Events of Default have been cured or waived and the Borrower has delivered to the Collateral Agent a certificate to that effect, each Grantor will have the right to exercise the
voting and consensual rights and powers that such Grantor would otherwise be entitled to exercise pursuant to the terms of paragraph (a)(i) above. 
  

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 ARTICLE IV 
  
 Security Interests in Personal Property 
  
 SECTION 4.01. Security Interest. (a) As security for the payment or performance when due, as the case may be, in full of the Obligations, each
Grantor hereby assigns and pledges to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, and hereby grants to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, a security
interest (the “Security Interest”) in, all right, title or interest in or to any and all of the following assets and properties now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any
time in the future may acquire any right, title or interest (collectively, the “Article 9 Collateral”): 
  
 (i) all Accounts; 
  
 (ii) all Chattel Paper; 
  
 (iii) all Deposit Accounts; 
  
 (iv) all Documents; 
  
 (v) all Equipment; 
  
 (vi) all General Intangibles; 
  
 (vii) all Instruments; 
  
 (viii) all Inventory; 
  
 (ix) all Investment Property; 
  
 (x) Letter-of-Credit rights; 
  
 (xi) all books and records pertaining to the Article 9 Collateral; and 
  
 (xii) to the extent not otherwise included, all Proceeds and products of any and all of the foregoing and
all collateral security and guarantees given by any Person with respect to any of the foregoing. 
  
 (b) Notwithstanding the foregoing, no security interest shall be granted in (i) any FCC License or other Intellectual Property to the extent that the
Communications Act or other applicable law prohibits the granting of a security interest therein, (ii) any Intellectual Property to the extent that such grant of a security interest constitutes or results in the abandonment, invalidation or
unenforceability of any right, title or interest of the applicable Grantor in such Intellectual Property (other than to the extent that any contractual provision giving rise to such abandonment, invalidation or unenforceability would be rendered
ineffective pursuant to Section 9-406, 9-408 or 9-409 of the New 

  

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York UCC or any other applicable law (including, without limitation, Title 11 of the United States Code) or principles of equity); provided, that
immediately upon the ineffectiveness, lapse or termination of any provision giving rise to such abandonment, invalidation or unenforceability, the Collateral shall include, and the applicable Grantor shall be deemed to have granted a security
interest in, such Intellectual Property as if such provision had never been in effect; provided further that the applicable Grantor shall use commercially reasonable efforts to have such provision waived or eliminated, (iii) any property
excluded from the definition of Pledged Stock by virtue of the proviso to Section 3.01(a) hereof, (iv) any assets with respect to which the Collateral and Guarantee requirement need not be satisfied as a result of Section 5.12(c) of
the Credit Agreement; provided that the applicable Grantor shall use commercially reasonable efforts to have waived or eliminated any contractual obligation of the types described in clauses (iii) and (iv) of Section 5.12(c) of
the Credit Agreement, (v) any Letter of Credit rights to the extent the applicable Grantor is required by applicable law to apply the proceeds of a drawing of such Letter of Credit for a specific purpose or (vi) any Grantor’s right,
title or interest in any license, contract or agreement to which such Grantor is a party or any of its right, title or interest thereunder to the extent, but only to the extent, that such a grant would, under the terms of such license, contract or
agreement, result in a breach of the terms of, or constitute a default under, any license, contract or agreement evidencing or giving rise to such property (other than to the extent that any such term would be rendered ineffective pursuant to
Section 9-406, 9-408 or 9-409 of the New York UCC or any other applicable law (including, without limitation, Title 11 of the United States Code) or principles of equity); provided, that immediately upon the ineffectiveness, lapse or
termination of any such provision, the Collateral shall include, and such Grantor shall be deemed to have granted a security interest in, all such rights and interests as if such provision had never been in effect; provided further that the
applicable Grantor shall use commercially reasonable efforts to have such provision waived or eliminated. Any property in which a security interest is not granted pursuant to this paragraph shall not be considered “Article 9 Collateral”
for purposes of this Agreement. 
  
 (c) Each Grantor hereby
irrevocably authorizes the Collateral Agent at any time and from time to time to file in any relevant jurisdiction any initial financing statements (including fixture filings) with respect to the Article 9 Collateral or any part thereof and
amendments thereto that (i) indicate the Collateral as all assets of such Grantor or words of similar effect as being of an equal or lesser scope or with greater detail, and (ii) contain the information required by Article 9 of the
Uniform Commercial Code of each applicable jurisdiction for the filing of any financing statement or amendment, including (a) whether such Grantor is an organization, the type of organization and any organizational identification number issued
to such Grantor and (b) in the case of a financing statement filed as a fixture filing or covering Article 9 Collateral constituting minerals or the like to be extracted or timber to be cut, a sufficient description of the real property to
which such Article 9 Collateral relates. Each Grantor agrees to provide such information to the Collateral Agent promptly upon request. 
  
 The Collateral Agent is further authorized to file with the United States Patent and Trademark Office or United States Copyright Office (or any successor
office or any similar office in any other country) such documents as may be reasonably 

  

 13 

 
necessary or advisable for the purpose of perfecting, confirming, continuing, enforcing or protecting the Security Interest granted by each Grantor, without
the signature of any Grantor, and naming any Grantor or the Grantors as debtors and the Collateral Agent as secured party. 
  
 (d) The Security Interest is granted as security only and shall not subject the Collateral Agent or any other Secured Party to, or in any way alter or
modify, any obligation or liability of any Grantor with respect to or arising out of the Article 9 Collateral. 
  
 SECTION 4.02. Representations and Warranties. The Grantors jointly and severally represent and warrant to the Collateral Agent and the Secured
Parties that: 
  
 (a) Each Grantor has good and valid rights in
and title to the Article 9 Collateral with respect to which it has purported to grant a Security Interest hereunder and has full power and authority to grant to the Collateral Agent the Security Interest in such Article 9 Collateral
pursuant hereto and to execute, deliver and perform its obligations in accordance with the terms of this Agreement, without the consent or approval of any other Person other than any consent or approval that has been obtained and is in full force
and effect. 
  
 (b) The Perfection Certificate has been duly
prepared, completed and executed and the information set forth therein, including the exact legal name of each Grantor, is correct and complete in all material respects as of the Effective Date. The Uniform Commercial Code financing statements
(including fixture filings, as applicable) or other appropriate filings, recordings or registrations prepared by the Collateral Agent based upon the information provided to the Collateral Agent in the Perfection Certificate for filing in each
governmental, municipal or other office specified in Schedule 2 to the Perfection Certificate (or specified by notice from the Borrower to the Collateral Agent after the Effective Date in the case of filings, recordings or registrations
required by Section 5.03(a) or 5.13 of the Credit Agreement), are all the filings, recordings and registrations (other than filings that may be required to be made in the United States Patent and Trademark Office and the United States Copyright
Office in order to perfect the Security Interest in Article 9 Collateral consisting of United States Patents, United States Trademarks and United States Copyrights) that are necessary to publish notice of and protect the validity of and to
establish a legal, valid and perfected security interest in favor of the Collateral Agent (for the benefit of the Secured Parties) in respect of all Article 9 Collateral in which the Security Interest may be perfected by filing, recording or
registration in the United States (or any political subdivision thereof) and its territories and possessions, and no further or subsequent filing, refiling, recording, rerecording, registration or reregistration is necessary in any such
jurisdiction, except as provided under applicable law with respect to the filing of continuation statements. Each Grantor represents and warrants that a fully executed agreement in the form hereof (or a short form hereof) and containing a
description of all Article 9 Collateral consisting of Intellectual Property with respect to United States Patents and United States registered Trademarks (and Trademarks for which United States registration applications are pending and in which
a security interest is granted hereunder) and United States 

  

 14 

 
registered Copyrights have been delivered to the Collateral Agent for recording by the United States Patent and Trademark Office and the United States
Copyright Office pursuant to 35 U.S.C. § 261, 15 U.S.C. § 1060 or 17 U.S.C. § 205 and the regulations thereunder, as applicable, and otherwise as may be required pursuant to the laws of any
other necessary jurisdiction, to protect the validity of and to establish a legal, valid and perfected security interest in favor of the Collateral Agent (for the benefit of the Secured Parties) in respect of all Article 9 Collateral consisting
of Patents, Trademarks and Copyrights in which a security interest may be perfected by filing, recording or registration in the United States (or any political subdivision thereof) and its territories and possessions, and no further or subsequent
filing, refiling, recording, rerecording, registration or reregistration is necessary (other than such actions as are necessary to perfect the Security Interest with respect to any Article 9 Collateral consisting of Patents, Trademarks and
Copyrights (or registration or application for registration thereof) acquired or developed after the date hereof). 
  
 (c) The Security Interest constitutes (i) a legal and valid security interest in all the Article 9 Collateral securing the payment and
performance of the Obligations, (ii) subject to the filings described in Section 4.02(b), a perfected security interest in all Article 9 Collateral in which a security interest may be perfected by filing, recording or registering a
financing statement or analogous document in the United States (or any political subdivision thereof) and its territories and possessions pursuant to the Uniform Commercial Code or other applicable law in such jurisdictions and (iii) a security
interest that shall be perfected in all Article 9 Collateral in which a security interest may be perfected upon the receipt and recording of this Agreement (or a short form hereof) with the United States Patent and Trademark Office and the
United States Copyright Office, as applicable and otherwise as may be required pursuant to the laws of any other necessary jurisdiction. The Security Interest is and shall be prior to any other Lien on any of the Article 9 Collateral, other
than Liens expressly permitted to be prior to the Security Interest pursuant to Section 6.02 of the Credit Agreement or arising by operation of law. 
  
 (d) The Article 9 Collateral is owned by the Grantors free and clear of any Lien, except for Liens expressly permitted pursuant to Section 6.02
of the Credit Agreement or arising by operation of law. None of the Grantors has filed or consented to the filing of (i) any financing statement or analogous document under the Uniform Commercial Code or any other applicable laws covering any
Article 9 Collateral, (ii) any assignment in which any Grantor assigns any Article 9 Collateral or any security agreement or similar instrument covering any Article 9 Collateral with the United States Patent and Trademark Office or
the United States Copyright Office or (iii) any assignment in which any Grantor assigns any Article 9 Collateral or any security agreement or similar instrument covering any Article 9 Collateral with any foreign governmental,
municipal or other office, which financing statement or analogous document, assignment, security agreement or similar instrument is still in effect, except, in each case, for Liens expressly permitted pursuant to Section 6.02 of the Credit
Agreement. 
  
 SECTION 4.03. Covenants. (a) Each
Grantor agrees promptly to notify the Collateral Agent in writing of any change (i) in name, (ii) in its identity or type of 

  

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organization or corporate structure, (iii) in its Federal Taxpayer Identification Number or organizational identification number or (iv) in its
jurisdiction of organization. Each Grantor agrees to promptly provide the Collateral Agent with certified organizational documents reflecting any of the changes described in the first sentence of this paragraph. Each Grantor agrees not to effect or
permit any change referred to in the preceding sentence unless all filings have been made under the Uniform Commercial Code or otherwise that are required in order for the Collateral Agent to continue at all times following such change to have a
valid, legal and perfected first priority security interest in all the Article 9 Collateral. Each Grantor agrees promptly to notify the Collateral Agent if any material portion of the Article 9 Collateral owned or held by such Grantor is
damaged or destroyed. 
  
 (b) Each Grantor agrees to maintain, at
its own cost and expense, such complete and accurate records with respect to the Article 9 Collateral owned by it as is consistent with its current practices and in accordance with such prudent and standard practices used in industries that are
the same as or similar to those in which such Grantor is engaged, and, at such time or times as the Collateral Agent may reasonably request, promptly to prepare and deliver to the Collateral Agent a duly certified schedule or schedules in form and
detail satisfactory to the Collateral Agent showing the identity, amount and location of any material Article 9 Collateral. 
  
 (c) Upon the request of the Collateral Agent, the Borrower shall deliver to the Collateral Agent an updated Perfection Certificate certified by a
Financial Officer of the Borrower reflecting all changes since the date of the Perfection Certificate delivered on the Effective Date or the date of the most recent Perfection Certificate delivered pursuant to this paragraph. 
  
 (d) Subject to the rights of such Grantor under the Loan Documents to dispose
of Collateral, each Grantor shall, at its own expense, use commercially reasonable efforts to defend title to the Article 9 Collateral against all Persons and to defend the Security Interest of the Collateral Agent in the Article 9
Collateral and the priority thereof against any Lien not expressly permitted pursuant to Section 6.02 of the Credit Agreement. 
  
 (e) Each Grantor agrees, at its own expense, to execute, acknowledge, deliver and cause to be duly filed all such further instruments and documents and
take all such actions as the Collateral Agent may from time to time reasonably request to better assure, preserve, protect and perfect the Security Interest and the rights and remedies created hereby, including the payment of any fees and taxes
required in connection with the execution and delivery of this Agreement, the granting of the Security Interest and the filing of any financing statements (including fixture filings) or other documents in connection herewith or therewith. If any
amount payable under or in connection with any of the Article 9 Collateral shall be or become evidenced by any promissory note or other instrument (other than a check), such note or instrument shall be promptly pledged and delivered to the
Collateral Agent, duly endorsed in a manner reasonably satisfactory to the Collateral Agent; provided that this sentence shall not apply to any promissory note or 

  

 16 

 
other instrument evidencing an amount not in excess of $3,000,000 other than any promissory note evidencing intercompany indebtedness. 
  
 Without limiting the generality of the foregoing, each Grantor hereby
authorizes the Collateral Agent, with prompt notice thereof to the Grantors, to supplement this Agreement by supplementing Schedule III or adding additional schedules hereto to specifically identify any asset or item that may constitute
registered Copyrights, Patents or registered Trademarks, or applications for the foregoing, and which is material to the conduct of the Grantor’s business; provided that any Grantor shall have the right, exercisable within 30 days
after it has been notified by the Collateral Agent of the specific identification of such Collateral, to advise the Collateral Agent in writing of any inaccuracy of the representations and warranties made by such Grantor hereunder with respect to
such Collateral. Each Grantor agrees that it will use commercially reasonable efforts to take such action as shall be necessary in order that all representations and warranties hereunder shall be true and correct with respect to such Collateral
within 30 days after the date it has been notified by the Collateral Agent of the specific identification of such Collateral. 
  
 (f) The Collateral Agent and such Persons as the Collateral Agent may reasonably designate shall have the right, at the Grantors’ own cost and
expense, at reasonable times and upon reasonable prior notice, to inspect the Article 9 Collateral, all records related thereto (and to make extracts and copies from such records) and the premises upon which any of the Article 9 Collateral
is located, to discuss the Grantors’ affairs with the officers of the Grantors and their independent accountants and to verify, in accordance with Section 5.08 of the Credit Agreement, the validity, amount, quality, quantity, value,
condition and status of, or any other matter relating to, the Article 9 Collateral, including, in the case of Accounts or Article 9 Collateral in the possession of any third person, by contacting Account Debtors or the third person
possessing such Article 9 Collateral for the purpose of making such a verification. The Collateral Agent shall have the absolute right to share any information it gains from such inspection or verification with any Secured Party. 
  
 (g) At its option, the Collateral Agent may discharge past due taxes,
assessments, charges, fees, Liens, security interests or other encumbrances at any time levied or placed on the Article 9 Collateral and not permitted pursuant to Section 6.02 of the Credit Agreement unless properly contested in good faith
pursuant to Section 5.05 of the Credit Agreement, and may pay for the maintenance and preservation of the Article 9 Collateral to the extent any Grantor fails to do so as required by the Credit Agreement or this Agreement, and each Grantor
jointly and severally agrees to reimburse the Collateral Agent on demand for any reasonable payment made or any reasonable expense incurred by the Collateral Agent pursuant to the foregoing authorization; provided that nothing in this
paragraph shall be interpreted as excusing any Grantor from the performance of, or imposing any obligation on the Collateral Agent or any Secured Party to cure or perform, any covenants or other promises of any Grantor with respect to taxes,
assessments, charges, fees, Liens, security interests or other encumbrances and maintenance as set forth herein or in the other Loan Documents. 
  

 17 

 (h) Each Grantor shall remain liable to observe and perform all the conditions and obligations to be
observed and performed by it under each contract, agreement or instrument relating to the Article 9 Collateral, all in accordance with the terms and conditions thereof, and each Grantor jointly and severally agrees to indemnify and hold
harmless the Collateral Agent and the Secured Parties from and against any and all liability for such performance. 
  
 (i) None of the Grantors shall make or permit to be made an assignment, pledge or hypothecation of the Article 9 Collateral or shall grant any other
Lien in respect of the Article 9 Collateral, except as permitted by the Credit Agreement. None of the Grantors shall make or permit to be made any transfer of the Article 9 Collateral and each Grantor shall remain at all times in possession of
the Article 9 Collateral owned by it, except that unless and until the Collateral Agent shall notify the Grantors that an Event of Default shall have occurred and be continuing and that during the continuance thereof the Grantors shall not
sell, convey, lease, assign, transfer or otherwise dispose of any Article 9 Collateral (which notice may be given by telephone if promptly confirmed in writing), the Grantors may use and dispose of the Article 9 Collateral in any lawful
manner not inconsistent with the provisions of this Agreement, the Credit Agreement or any other Loan Document. 
  
 (j) None of the Grantors will, without the Collateral Agent’s prior written consent, not to be unreasonably withheld, grant any extension of the time
of payment of any Accounts included in the Article 9 Collateral, compromise, compound or settle the same for less than the full amount thereof, release, wholly or partly, any Person liable for the payment thereof or allow any credit or discount
whatsoever thereon, other than extensions, compromises, settlements, releases, credits or discounts granted or made in the ordinary course of business and consistent with its current practices or in accordance with such prudent and standard practice
used in industries that are the same as or similar to those in which such Grantor is engaged. 
  
 (k) The Grantors, at their own expense, shall maintain or cause to be maintained insurance covering physical loss or damage to the Inventory and Equipment consistent with its current practices and in accordance with
such prudent and standard policies used in industries that are the same or similar to those in which the Grantors are engaged and otherwise in accordance with the requirements set forth in Section 5.07 of the Credit Agreement. Each Grantor
irrevocably makes, constitutes and appoints the Collateral Agent (and all officers, employees or agents designated by the Collateral Agent) as such Grantor’s true and lawful agent (and attorney-in-fact) for the purpose, during the continuance
of an Event of Default, of making, settling and adjusting claims in respect of Article 9 Collateral under policies of insurance, endorsing the name of such Grantor on any check, draft, instrument or other item of payment for the proceeds of
such policies of insurance and for making all determinations and decisions with respect thereto. In the event that any Grantor at any time or times shall fail to obtain or maintain any of the policies of insurance required hereby or to pay any
premium in whole or part relating thereto, the Collateral Agent may, without waiving or releasing any obligation or liability of the Grantors hereunder or any Event of Default, in its sole discretion, obtain and maintain such policies of insurance
and pay such premium and take any other actions 

  

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with respect thereto as the Collateral Agent reasonably deems advisable. All sums disbursed by the Collateral Agent in connection with this paragraph,
including reasonable attorneys’ fees, court costs, expenses and other charges relating thereto, shall be payable, upon demand, by the Grantors to the Collateral Agent and shall be additional Obligations secured hereby. 
  
 (l) Each Grantor shall maintain, in form and manner reasonably satisfactory
to the Collateral Agent, records of its Chattel Paper and its books, records and documents evidencing or pertaining thereto. 
  
 SECTION 4.04. Other Actions. In order to further insure the attachment, perfection and priority of, and the ability of the Collateral Agent to
enforce, the Security Interest, each Grantor agrees, in each case at such Grantor’s own expense, to take the following actions with respect to the following Article 9 Collateral: 
  
 (a) Instruments. If any Grantor shall at any time hold or acquire any
Instruments, such Grantor shall forthwith endorse, assign and deliver the same to the Collateral Agent, accompanied by such instruments of transfer or assignment duly executed in blank as the Collateral Agent may from time to time reasonably
request; provided that, notwithstanding the foregoing, this sentence shall not apply to any Instrument evidencing an amount not in excess of $3,000,000, other than any Instrument issued by the Borrower, Holdings or a subsidiary thereof.

  
 (b) Electronic Chattel Paper and Transferable Records.
If any Grantor at any time holds or acquires an interest in any electronic chattel paper or any “transferable record,” as that term is defined in Section 201 of the Federal Electronic Signatures in Global and National Commerce Act, or
in Section 16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction, such Grantor shall promptly notify the Collateral Agent thereof and, at the request of the Collateral Agent, shall take such action as the
Collateral Agent may reasonably request to vest in the Collateral Agent control under New York UCC Section 9-105 of such electronic chattel paper or control under Section 201 of the Federal Electronic Signatures in Global and National
Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable record; provided that, notwithstanding the foregoing, this sentence shall not apply to any
electronic chattel paper or other “transferable record” evidencing an amount not in excess of $50,000 on an individual basis or $1,000,000 on an aggregate basis. The Collateral Agent agrees with such Grantor that the Collateral Agent will
arrange, pursuant to procedures reasonably satisfactory to the Collateral Agent and so long as such procedures will not result in the Collateral Agent’s loss of control, for the Grantor to make alterations to the electronic chattel paper or
transferable record permitted under UCC Section 9-105 or, as the case may be, Section 201 of the Federal Electronic Signatures in Global and National Commerce Act or Section 16 of the Uniform Electronic Transactions Act for a party in
control to allow without loss of control, unless an Event of Default has occurred and is continuing or would occur after taking into account any action by such Grantor with respect to such electronic chattel paper or transferable record. 

 

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 (c) Letter-of-Credit Rights. If any Grantor is at any time a beneficiary under a letter of credit
with a face amount in excess of $3,000,000 now or hereafter issued in favor of such Grantor, such Grantor shall promptly notify the Collateral Agent thereof and, at the request and option of the Collateral Agent, such Grantor shall, pursuant to an
agreement in form and substance reasonably satisfactory to the Collateral Agent, either (i) arrange for the issuer and any confirmer of such letter of credit to consent to an assignment to the Collateral Agent of the proceeds of any drawing
under the letter of credit or (ii) arrange for the Collateral Agent to become the transferee beneficiary of the letter of credit, with the Collateral Agent agreeing, in each case, that the proceeds of any drawing under the letter of credit are
to be paid to the applicable Grantor unless an Event of Default has occurred or is continuing. 
  
 (d) Commercial Tort Claims. If any Grantor shall at any time hold or acquire a commercial tort claim in an amount reasonably estimated to exceed $3,000,000, the Grantor shall promptly notify the Collateral
Agent thereof in a writing signed by such Grantor including a summary description of such claim and grant to the Collateral Agent in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with
such writing to be in form and substance reasonably satisfactory to the Collateral Agent. 
  
 SECTION 4.05. Covenants Regarding Patent, Trademark and Copyright Collateral. (a) Each Grantor agrees that it will not do any act or omit to do any act (and will exercise commercially reasonable efforts to
prevent its licensees from doing any act as omitting to do any act) whereby any Patent that is material to the conduct of such Grantor’s business may become prematurely invalidated or dedicated to the public, and agrees that it shall take
commercially reasonable steps with respect to any products covered by any such Patent as necessary and sufficient to establish and preserve its rights under applicable patent laws. 
  
 (b) Each Grantor (either itself or through its licensees or its sublicensees) will, for each Trademark material to the
conduct of such Grantor’s business, (i) maintain such Trademark in full force free from any abandonment or invalidity for non-use, (ii) display such Trademark with notice of Federal or foreign registration or claim of trademark or
service mark as required to establish and preserve its rights under applicable law and (iii) not knowingly use or knowingly permit the use of such Trademark in violation of any third party rights. 
  
 (c) Each Grantor (either itself or through its licensees or sublicensees)
will, for each work covered by a Copyright that is material to the conduct of any Grantor’s business, continue to publish, reproduce, display, adopt and distribute the work with appropriate copyright notice as required to establish and preserve
its rights under applicable copyright laws. 
  
 (d) Each Grantor
shall notify the Collateral Agent promptly if it knows that any Patent, Trademark or Copyright material to the conduct of its business may become imminently abandoned or lost or prematurely dedicated to the public, or of any materially adverse
determination or development (including the institution of, or any such 

  

 20 

 
determination or development in, any proceeding in the United States Patent and Trademark Office, United States Copyright Office or any court or similar
office of any country) regarding such Grantor’s ownership of any Patent, Trademark or Copyright, its right to register the same, or its right to keep and maintain the same. 
  
 (e) In the event that any Grantor, either itself or through any agent, employee, licensee or designee, files an application
for any Patent, Trademark or Copyright (or for the registration of any Trademark or Copyright) with the United States Patent and Trademark Office, United States Copyright Office or any office or agency in any political subdivision of the United
States or in any other country or any political subdivision thereof, or receives notification that an intent-to-use Trademark application has been approved, such Grantor shall promptly inform the Collateral Agent, and, upon request of the Collateral
Agent, shall execute and deliver any and all agreements, instruments, documents and papers as the Collateral Agent may reasonably request to evidence the Collateral Agent’s security interest in such Patent, Trademark or Copyright, and each
Grantor hereby appoints the Collateral Agent as its attorney-in-fact to file such writings for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed; such power, being coupled with an interest, is irrevocable.

  
 (f) Each Grantor will take all necessary steps that are
consistent with the practice in any proceeding before the United States Patent and Trademark Office, United States Copyright Office or any office or agency in any political subdivision of the United States or in any other country or any political
subdivision thereof, to maintain and pursue each application relating to the Patents, Trademarks and/or Copyrights which are material to the conduct of any Grantor’s business (and to obtain the relevant grant or registration) and to maintain
each issued Patent and each registration of the Trademarks and Copyrights that is material to the conduct of any Grantor’s business, including timely filings of applications for renewal, affidavits of use, affidavits of incontestability and
payment of maintenance fees, and, if such Grantor believes it necessary in its reasonable business judgment, to initiate opposition, interference and cancelation proceedings against third parties. 
  
 (g) In the event that any Grantor has reason to believe that any
Article 9 Collateral consisting of a Patent, Trademark or Copyright material to the conduct of any Grantor’s business has been or is about to be materially infringed, misappropriated or diluted by a third party, such Grantor promptly shall
notify the Collateral Agent and shall, if such Grantor believes it necessary in its reasonable business judgment, promptly sue for infringement, misappropriation or dilution and to recover any and all damages for such infringement, misappropriation
or dilution, and take such other actions as are appropriate under the circumstances to protect such Article 9 Collateral. 
  
 (h) Upon and during the continuance of an Event of Default, each Grantor shall use commercially reasonable efforts to obtain all requisite consents or
approvals by the licensor of each Copyright License, Patent License or Trademark License to effect the assignment of all such Grantor’s right, title and interest thereunder to the Collateral Agent or its designee. 
  

 21 

 ARTICLE V 
  
 Remedies 
  
 SECTION 5.01. Remedies Upon Default. Upon the occurrence and during the continuance of an Event of Default, each Grantor agrees to deliver each
item of Collateral to the Collateral Agent on demand, and it is agreed that the Collateral Agent shall have the right to take any of or all the following actions at the same or different times: (a) with respect to any Article 9 Collateral
consisting of Intellectual Property, on demand, to cause the Security Interest to become an assignment, transfer and conveyance of any of or all such Article 9 Collateral by the applicable Grantors to the Collateral Agent, or to license or
sublicense, whether general, special or otherwise, and whether on an exclusive or nonexclusive basis, any such Article 9 Collateral throughout the world on such terms and conditions and in such manner as the Collateral Agent shall determine (other
than in violation of any then-existing licensing arrangements to the extent that waivers cannot be obtained), and (b) with or without legal process and with or without prior notice or demand for performance, to take possession of the Article 9
Collateral and without liability for trespass to the applicable Grantor to enter any premises where the Article 9 Collateral may be located for the purpose of taking possession of or removing the Article 9 Collateral and, generally, to exercise any
and all rights afforded to a secured party under the Uniform Commercial Code or other applicable law. Without limiting the generality of the foregoing, each Grantor agrees that the Collateral Agent shall have the right, subject to the mandatory
requirements of applicable law, to sell or otherwise dispose of all or any part of the Collateral at a public or private sale or at any broker’s board or on any securities exchange, for cash, upon credit or for future delivery as the Collateral
Agent shall deem appropriate. The Collateral Agent shall be authorized at any such sale of securities (if it deems it advisable to do so) to restrict the prospective bidders or purchasers to Persons who will represent and agree that they are
purchasing the Collateral for their own account for investment and not with a view to the distribution or sale thereof, and upon consummation of any such sale the Collateral Agent shall have the right to assign, transfer and deliver to the purchaser
or purchasers thereof the Collateral so sold. Each such purchaser at any sale of Collateral shall hold the property sold absolutely, free from any claim or right on the part of any Grantor, and each Grantor hereby waives (to the extent permitted by
law) all rights of redemption, stay and appraisal which such Grantor now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. 
  
 The Collateral Agent shall give the applicable Grantors 10 days’ written notice (which each Grantor agrees is
reasonable notice within the meaning of Section 9-611 of the New York UCC or its equivalent in other jurisdictions) of the Collateral Agent’s intention to make any sale of Collateral. Such notice, in the case of a public sale, shall
state the time and place for such sale and, in the case of a sale at a broker’s board or on a securities exchange, shall state the board or exchange at which such sale is to be made and the day on which the Collateral, or portion thereof, will
first be offered for sale at such board or exchange. Any such public sale shall be held at such time or times within ordinary business hours and at such place or places as the Collateral Agent may fix and state in the notice (if any) of such sale.
At any such sale, the 

  

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Collateral, or portion thereof, to be sold may be sold in one lot as an entirety or in separate parcels, as the Collateral Agent may (in its sole and
absolute discretion) determine. The Collateral Agent shall not be obligated to make any sale of any Collateral if it shall determine not to do so, regardless of the fact that notice of sale of such Collateral shall have been given. The Collateral
Agent may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed for sale, and such sale may, without further notice, be made at the time and
place to which the same was so adjourned. In case any sale of all or any part of the Collateral is made on credit or for future delivery, the Collateral so sold shall be retained by the Collateral Agent until the sale price is paid by the purchaser
or purchasers thereof, but the Collateral Agent shall not incur any liability in case any such purchaser or purchasers shall fail to take up and pay for the Collateral so sold and, in case of any such failure, such Collateral may be sold again upon
like notice. At any public (or, to the extent permitted by law, private) sale made pursuant to this Agreement, any Secured Party may bid for or purchase, free (to the extent permitted by law) from any right of redemption, stay, valuation or
appraisal on the part of any Grantor (all said rights being also hereby waived and released to the extent permitted by law), the Collateral or any part thereof offered for sale and may make payment on account thereof by using any claim then due and
payable to such Secured Party from any Grantor as a credit against the purchase price, and such Secured Party may, upon compliance with the terms of sale, hold, retain and dispose of such property without further accountability to any Grantor
therefor. For purposes hereof, a written agreement to purchase the Collateral or any portion thereof shall be treated as a sale thereof; the Collateral Agent shall be free to carry out such sale pursuant to such agreement and no Grantor shall be
entitled to the return of the Collateral or any portion thereof subject thereto, notwithstanding the fact that after the Collateral Agent shall have entered into such an agreement all Events of Default shall have been remedied and the Obligations
paid in full. As an alternative to exercising the power of sale herein conferred upon it, the Collateral Agent may proceed by a suit or suits at law or in equity to foreclose this Agreement and to sell the Collateral or any portion thereof pursuant
to a judgment or decree of a court or courts having competent jurisdiction or pursuant to a proceeding by a court-appointed receiver. Any sale pursuant to the provisions of this Section 5.01 shall be deemed to conform to the commercially
reasonable standards as provided in Section 9-610(b) of the New York UCC or its equivalent in other jurisdictions. 
  
 SECTION 5.02. Application of Proceeds. The Collateral Agent shall promptly apply the proceeds of any collection or sale of Collateral, including
any Collateral consisting of cash, as follows: 
  
 FIRST, to the payment of all costs and expenses incurred by the Collateral Agent in connection with such collection or sale or otherwise in connection with this Agreement, any other Loan Document or any of the Obligations, including all
court costs and the fees and expenses of its agents and legal counsel, the repayment of all advances made by the Collateral Agent hereunder or under any other Loan Document on behalf of any Grantor and any other costs or expenses 

  

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incurred in connection with the exercise of any right or remedy hereunder or under any other Loan Document; 
  
 SECOND, to the payment in full of the Obligations (the
amounts so applied to be distributed among the Secured Parties pro rata in accordance with the amounts of the Obligations owed to them on the date of any such distribution); and 
  
 THIRD, to the Grantors, their successors or assigns, or as a court of competent jurisdiction may otherwise
direct. 
  
 The Collateral Agent shall have absolute discretion as to the time of
application of any such proceeds, moneys or balances in accordance with this Agreement. Upon any sale of Collateral by the Collateral Agent (including pursuant to a power of sale granted by statute or under a judicial proceeding), the receipt by the
Collateral Agent or by the officer making the sale of such proceeds shall be a sufficient discharge to the purchaser or purchasers of the Collateral so sold and such purchaser or purchasers shall not be obligated to see to the application of any
part of the purchase money paid over to the Collateral Agent or such officer or be answerable in any way for the misapplication thereof. 
  
 SECTION 5.03. Grant of License to Use Intellectual Property. For the purpose of enabling the Collateral Agent to exercise rights and remedies under
this Agreement at such time as the Collateral Agent shall be lawfully entitled to exercise such rights and remedies, each Grantor hereby grants to the Collateral Agent a nonexclusive license (which shall be irrevocable during the term of this
Agreement and exercisable without payment of royalty or other compensation to the Grantors) to use, license or sublicense, provided that the Collateral Agent comply with the terms of any applicable License, solely to the extent necessary to properly
exercise its remedies during such Event of Default, any of the Article 9 Collateral consisting of Intellectual Property now owned or hereafter acquired by such Grantor, and wherever the same may be located, and provided that the Collateral
Agent comply with the terms of any applicable License, including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or
printout thereof. The use of such license by the Collateral Agent may be exercised, at the option of the Collateral Agent, upon the occurrence and solely during the continuation of an Event of Default; provided that any license, sublicense or
other transaction entered into by the Collateral Agent in accordance herewith shall be binding upon the Grantors notwithstanding any subsequent cure of an Event of Default. 
  
 SECTION 5.04. Securities Act. In view of the position of the Grantors in relation to the Pledged Collateral, or
because of other current or future circumstances, a question may arise under the Securities Act of 1933, as now or hereafter in effect, or any similar federal statute hereafter enacted analogous in purpose or effect (such Act and any such similar
statute as from time to time in effect being called the “Federal Securities Laws”) with respect to any disposition of the Pledged Collateral permitted hereunder. Each Grantor understands that compliance with the Federal Securities
Laws might very 

  

 24 

 
strictly limit the course of conduct of the Collateral Agent if the Collateral Agent were to attempt to dispose of all or any part of the Pledged Collateral,
and might also limit the extent to which or the manner in which any subsequent transferee of any Pledged Collateral could dispose of the same. Similarly, there may be other legal restrictions or limitations affecting the Collateral Agent in any
attempt to dispose of all or part of the Pledged Collateral under applicable Blue Sky or other state securities laws or similar laws analogous in purpose or effect. Each Grantor recognizes that in light of such restrictions and limitations the
Collateral Agent may, with respect to any sale of the Pledged Collateral, limit the purchasers to those who will agree, among other things, to acquire such Pledged Collateral for their own account, for investment, and not with a view to the
distribution or resale thereof. Each Grantor acknowledges and agrees that in light of such restrictions and limitations, the Collateral Agent, in its sole and absolute discretion (a) may proceed to make such a sale whether or not a registration
statement for the purpose of registering such Pledged Collateral or part thereof shall have been filed under the Federal Securities Laws and (b) may approach and negotiate with a single potential purchaser to effect such sale. Each Grantor
acknowledges and agrees that any such sale might result in prices and other terms less favorable to the seller than if such sale were a public sale without such restrictions. In the event of any such sale, the Collateral Agent shall incur no
responsibility or liability for selling all or any part of the Pledged Collateral at a price that the Collateral Agent, in its sole and absolute discretion, may in good faith deem reasonable under the circumstances, notwithstanding the possibility
that a substantially higher price might have been realized if the sale were deferred until after registration as aforesaid or if more than a single purchaser were approached. The provisions of this Section 5.04 will apply notwithstanding the
existence of a public or private market upon which the quotations or sales prices may exceed substantially the price at which the Collateral Agent sells. 
  
 SECTION 5.05. Registration. Each Grantor agrees that, upon the occurrence and during the continuance of an Event of Default, if for any reason the
Collateral Agent desires to sell any of the Pledged Collateral at a public sale, it will, at any time and from time to time, upon the written request of the Collateral Agent, use its commercially reasonable efforts to take or to cause the issuer of
such Pledged Collateral to take such action and prepare, distribute and/or file such documents, as are required or advisable in the reasonable opinion of counsel for the Collateral Agent to permit the public sale of such Pledged Collateral. Each
Grantor further agrees to indemnify, defend and hold harmless the Collateral Agent, each other Secured Party, any underwriter and their respective officers, directors, affiliates and controlling persons from and against all loss, liability,
expenses, costs of counsel (including, without limitation, reasonable fees and expenses to the Collateral Agent of legal counsel), and claims (including the costs of investigation) that they may incur insofar as such loss, liability, expense or
claim arises out of or is based upon any alleged untrue statement of a material fact contained in any prospectus (or any amendment or supplement thereto) or in any notification or offering circular, or arises out of or is based upon any alleged
omission to state a material fact required to be stated therein or necessary to make the statements in any thereof not misleading, except insofar as the same may have been caused by any untrue statement or omission based upon information furnished
in writing to such Grantor or the issuer of such Pledged Collateral by the Collateral Agent or any other Secured Party expressly for 

  

 25 

 
use therein. Each Grantor further agrees, upon such written request referred to above, to use its commercially reasonable efforts to qualify, file or
register, or cause the issuer of such Pledged Collateral to qualify, file or register, any of the Pledged Collateral under the Blue Sky or other securities laws of such states as may be requested by the Collateral Agent and keep effective, or cause
to be kept effective, all such qualifications, filings or registrations. Each Grantor will bear all costs and expenses of carrying out its obligations under this Section 5.05. Each Grantor acknowledges that there is no adequate remedy at law
for failure by it to comply with the provisions of this Section 5.05 and that such failure would not be adequately compensable in damages, and therefore agrees that its agreements contained in this Section 5.05 may be specifically
enforced. 
  
 ARTICLE VI 
  
 Indemnity, Subrogation and Subordination 
  
 SECTION 6.01. Indemnity and Subrogation. In addition to all such
rights of indemnity and subrogation as the Subsidiary Loan Parties may have under applicable law (but subject to Section 6.03), the Borrower and Holdings, jointly and severally, agree that (a) in the event a payment of an obligation shall
be made by any Subsidiary Loan Party under this Agreement, the Borrower and Holdings, jointly and severally, shall indemnify such Subsidiary Loan Party for the full amount of such payment and such Subsidiary Loan Party shall be subrogated to the
rights of the Person to whom such payment shall have been made to the extent of such payment and (b) in the event any assets of any Subsidiary Loan Party shall be sold pursuant to this Agreement, the Shared Collateral Agreement or any other
Security Document to satisfy in whole or in part an Obligation owed to any Secured Party, the Borrower and Holdings, jointly and severally, shall indemnify such Subsidiary Loan Party in an amount equal to the greater of the book value or the fair
market value of the assets so sold. 
  
 SECTION 6.02.
Contribution and Subrogation. Each Subsidiary Loan Party (a “Contributing Party”) agrees (subject to Section 6.03) that, in the event a payment shall be made by any other Subsidiary Loan Party hereunder in respect of any
Obligation or assets of any other Subsidiary Loan Party shall be sold pursuant to any Security Document, including the Shared Collateral Agreement, to satisfy any Obligation owed to any Secured Party and such other Subsidiary Loan Party (the
“Claiming Party”) shall not have been fully indemnified by the Borrower and Holdings as provided in Section 6.01, the Contributing Party shall indemnify the Claiming Party in an amount equal to the amount of such payment or the
greater of the book value or the fair market value of such assets, as the case may be, in each case multiplied by a fraction of which the numerator shall be the net worth of the Contributing Party on the date hereof and the denominator shall be the
aggregate net worth of all the Subsidiary Loan Parties on the date hereof (or, in the case of any Subsidiary Loan Party becoming a party hereto pursuant to Section 7.14, the date of the supplement hereto executed and delivered by such
Subsidiary Loan Party). Any Contributing Party making any payment to a Claiming Party pursuant to this Section 6.02 shall be subrogated to the rights of such Claiming Party under Section 6.01 to the extent of such payment. 
  

 26 

 SECTION 6.03. Subordination. (a) Notwithstanding any provision of this Agreement to the
contrary, all rights of the Guarantors and Grantors and Hawaiian Telcom, Inc. under Sections 6.01 and 6.02 and all other rights of indemnity, contribution or subrogation under applicable law or otherwise shall be fully subordinated to the
indefeasible payment in full in cash or immediately available funds of the Obligations. No failure on the part of the Borrower, Holdings or any Guarantor or Grantor or Hawaiian Telcom, Inc. to make the payments required by Sections 6.01 and
6.02 (or any other payments required under applicable law or otherwise) shall in any respect limit the obligations and liabilities of any Guarantor or Grantor or Hawaiian Telcom, Inc. with respect to its obligations hereunder, and each Guarantor and
Grantor and Hawaiian Telcom, Inc. shall remain liable for the full amount of the obligations of such Guarantor or Grantor and Hawaiian Telcom, Inc. hereunder. 
  

(b) Each Guarantor and Grantor and Hawaiian Telcom, Inc. hereby agrees that all Indebtedness and other monetary obligations owed by it to any other
Guarantor, Grantor or any other Subsidiary shall be fully subordinated to the indefeasible payment in full in cash or immediately available funds of the Obligations. 
  
 ARTICLE VII 
  
 Miscellaneous 
  
 SECTION 7.01. Notices. All communications and notices hereunder shall (except as otherwise expressly permitted herein) be in writing and given as
provided in Section 9.01 of the Credit Agreement. All communications and notices hereunder to any Subsidiary Loan Party shall be given to it in care of the Borrower as provided in Section 9.01 of the Credit Agreement. 
  
 SECTION 7.02. Waivers; Amendment. (a) No failure or delay by the
Collateral Agent, the Issuing Bank or any Lender in exercising any right or power hereunder or under any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment
or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of the Collateral Agent, the Issuing Bank and the Lenders hereunder and
under the other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or consent to any departure by any Loan Party therefrom shall in any event be
effective unless the same shall be permitted by paragraph (b) of this Section 7.02, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of
the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the Collateral Agent, any Lender or the Issuing Bank may have had notice or knowledge of such Default at
the time. No notice or demand on any Loan Party in any case shall entitle any Loan Party to any other or further notice or demand in similar or other circumstances. 
  

 27 

 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to
an agreement or agreements in writing entered into by the Collateral Agent and the Loan Party or Loan Parties with respect to which such waiver, amendment or modification is to apply, subject to any consent required in accordance with
Section 9.02 of the Credit Agreement. 
  
 SECTION 7.03.
Collateral Agent’s Fees and Expenses; Indemnification. (a) The parties hereto agree that the Collateral Agent shall be entitled to reimbursement of its expenses incurred hereunder as provided in Section 9.03 of the Credit
Agreement. 
  
 (b) Without limitation of its indemnification
obligations under the other Loan Documents, each Grantor and each Guarantor jointly and severally agrees to indemnify the Collateral Agent and the other Indemnitees (as defined in Section 9.03 of the Credit Agreement) against, and hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including the fees, charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any Indemnitee arising out of, in
connection with, or as a result of, the execution, delivery or performance of this Agreement or any claim, litigation, investigation or proceeding relating to any of the foregoing agreement or instrument contemplated hereby, or to the Collateral,
whether or not any Indemnitee is a party thereto; provided that such indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined by a court of
competent jurisdiction by final and nonappealable judgment to have resulted from the gross negligence or wilful misconduct of such Indemnitee. 
  
 (c) Any such amounts payable as provided hereunder shall be additional Obligations secured hereby and by the other Security Documents. The provisions of
this Section 7.03 shall remain operative and in full force and effect regardless of the termination of this Agreement or any other Loan Document, the consummation of the transactions contemplated hereby, the repayment of any of the Obligations,
the invalidity or unenforceability of any term or provision of this Agreement or any other Loan Document, or any investigation made by or on behalf of the Collateral Agent or any other Secured Party. All amounts due under this Section 7.03
shall be payable on written demand therefor. 
  
 SECTION 7.04.
Successors and Assigns. Whenever in this Agreement any of the parties hereto is referred to, such reference shall be deemed to include the permitted successors and assigns of such party; and all covenants, promises and agreements by or on
behalf of any Guarantor, Grantor or the Collateral Agent that are contained in this Agreement shall bind and inure to the benefit of their respective successors and assigns. 
  
 SECTION 7.05. Survival of Agreement. All covenants, agreements, representations and warranties made by the Loan
Parties in the Loan Documents and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the Lenders and shall
survive the execution and delivery of the Loan Documents 

  

 28 

 
and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any Lender or on its behalf and notwithstanding
that the Collateral Agent, the Issuing Bank or any Lender may have had notice or knowledge of any Default or incorrect representation or warranty at the time any credit is extended under the Credit Agreement, and shall continue in full force and
effect as long as the principal of or any accrued interest on any Loan or any fee or any other amount payable under any Loan Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or
terminated. 
  
 SECTION 7.06. Counterparts; Effectiveness;
Several Agreement. This Agreement may be executed in counterparts, each of which shall constitute an original but all of which when taken together shall constitute single contract. Delivery of an executed signature page to this Agreement by
facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Agreement. This Agreement shall become effective as to any Loan Party when a counterpart hereof executed on behalf of such Loan Party shall have been
delivered to the Collateral Agent and a counterpart hereof shall have been executed on behalf of the Collateral Agent, and thereafter shall be binding upon such Loan Party and the Collateral Agent and their respective permitted successors and
assigns, and shall inure to the benefit of such Loan Party, the Collateral Agent and the other Secured Parties and their respective successors and assigns, except that no Loan Party shall have the right to assign or transfer its rights or
obligations hereunder or any interest herein or in the Collateral (and any such assignment or transfer shall be void) except as expressly contemplated by this Agreement or the Credit Agreement. This Agreement shall be construed as a separate
agreement with respect to each Loan Party and may be amended, modified, supplemented, waived or released with respect to any Loan Party without the approval of any other Loan Party and without affecting the obligations of any other Loan Party
hereunder. 
  
 SECTION 7.07. Severability. Any provision of
this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and
enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. The parties shall endeavor in good-faith negotiations to
replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
  
 SECTION 7.08. Right of Set-Off. If an Event of Default shall have
occurred and be continuing, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand,
provisional or final) at any time held and other obligations at any time owing by such Lender or Affiliate to or for the credit or the account of any Subsidiary Loan Party against any of and all the obligations of such Subsidiary Loan Party now or
hereafter existing under this agreement owed to such Lender, irrespective of whether or not such Lender shall have made any demand under this Agreement and although such obligations may be unmatured. The rights of 

  

 29 

 
each Lender under this Section 7.08 are in addition to other rights and remedies (including other rights of set-off) which such Lender may have.

  
 SECTION 7.09. Governing Law; Jurisdiction; Consent to
Service of Process. (a) This Agreement shall be construed in accordance with and governed by the law of the State of New York. 
  
 (b) Each of the Loan Parties hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme
Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or any other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in such New York State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or in any other manner provided by law. Nothing in this Agreement or any other Loan Document shall affect any right that the Collateral Agent, the Issuing Bank or any Lender may otherwise have to bring any action or
proceeding relating to this Agreement or any other Loan Document against any Grantor or Guarantor, or its properties in the courts of any jurisdiction. 
  
 (c) Each of the Loan Parties hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection
which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or any other Loan Document in any court referred to in paragraph (b) of this Section 7.09. Each of the
parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
  
 (d) Each party to this Agreement irrevocably consents to service of process in the manner provided for notices in
Section 7.01. Nothing in this Agreement or any other Loan Document will affect the right of any party to this Agreement to serve process in any other manner permitted by law. 
  
 SECTION 7.10. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).
EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT 

  

 30 

 
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION
7.10. 
  
 SECTION 7.11. Headings. Article and Section
headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement. 
  
 SECTION 7.12. Security Interest Absolute. All rights of the Collateral
Agent hereunder, the Security Interest, the grant of a security interest in the Pledged Collateral and all obligations of each Grantor and Guarantor hereunder shall be absolute and unconditional irrespective of (a) any lack of validity or
enforceability of the Credit Agreement, any other Loan Document, any agreement with respect to any of the Obligations or any other agreement or instrument relating to any of the foregoing, (b) any change in the time, manner or place of payment
of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Credit Agreement, any other Loan Document or any other agreement or instrument, (c) any exchange, release
or non-perfection of any Lien on other collateral, or any release or amendment or waiver of or consent under or departure from any guarantee, securing or guaranteeing all or any of the Obligations, or (d) any other circumstance that might
otherwise constitute a defense available to, or a discharge of, any Grantor or Guarantor in respect of the Obligations or this Agreement (other than a defense of payment or performance). 
  
 SECTION 7.13. Termination or Release. (a) This Agreement, the Guarantees made herein, the Security Interest and
all other security interests granted hereby shall terminate when all the Loan Document Obligations have been indefeasibly paid in full and the Lenders have no further commitment to lend under the Credit Agreement, the LC Exposure has been reduced to
zero and the Issuing Bank has no further obligations to issue Letters of Credit under the Credit Agreement. 
  
 (b) A Subsidiary Loan Party shall automatically be released from its obligations hereunder and the Security Interest in the Collateral of such Subsidiary
Loan Party shall be automatically released upon the consummation of any transaction permitted by the Credit Agreement as a result of which such Subsidiary Loan Party ceases to be a Subsidiary of the Borrower (or otherwise ceases to be a Guarantor);
provided that the Required Lenders shall have consented to such transaction (to the extent required by the Credit Agreement) and the terms of such consent did not provide otherwise. 
  
 (c) Upon any sale or other transfer by any Grantor of any Collateral that is
permitted under the Credit Agreement, or upon the effectiveness of any written consent to the release of the security interest granted hereby in any Collateral pursuant to Section 9.02 of the Credit Agreement, the security interest in such
Collateral shall be automatically released. 
  

 31 

 (d) In connection with any termination or release pursuant to paragraph (a), (b) or (c), the
Collateral Agent shall execute and deliver to any Grantor, at such Grantor’s expense, all documents that such Grantor shall reasonably request to evidence such termination or release. Any execution and delivery of documents pursuant to this
Section 7.13 shall be without recourse to or warranty by the Collateral Agent. 
  
 SECTION 7.14. Additional Subsidiaries. Upon execution and delivery by the Collateral Agent and a Subsidiary of an instrument in the form of Exhibit I hereto, such Subsidiary that is required to become a
party hereto pursuant to Section 5.11 of the Credit Agreement shall become a Subsidiary Loan Party hereunder with the same force and effect as if originally named as a Subsidiary Loan Party herein. The execution and delivery of any such
instrument shall not require the consent of any other Loan Party hereunder. The rights and obligations of each Loan Party hereunder shall remain in full force and effect notwithstanding the addition of any new Loan Party as a party to this
Agreement. 
  
 SECTION 7.15. Collateral Agent Appointed
Attorney-in-Fact. Each Grantor hereby appoints the Collateral Agent the attorney-in-fact of such Grantor for the purpose of carrying out the provisions of this Agreement and taking any action and executing any instrument that the Collateral
Agent may deem necessary or advisable to accomplish the purposes hereof, which appointment is irrevocable and coupled with an interest. The Collateral Agent shall have the right, upon the occurrence and during the continuance of an Event of Default,
with full power of substitution either in the Collateral Agent’s name or in the name of such Grantor (a) to receive, endorse, assign and/or deliver any and all notes, acceptances, checks, drafts, money orders or other evidences of payment
relating to the Collateral or any part thereof; (b) to demand, collect, receive payment of, give receipt for and give discharges and releases of all or any of the Collateral; (c) to sign the name of any Grantor on any invoice or bill of
lading relating to any of the Collateral; (d) to send verifications of Accounts Receivable to any Account Debtor; (e) to commence and prosecute any and all suits, actions or proceedings at law or in equity in any court of competent
jurisdiction to collect or otherwise realize on all or any of the Collateral or to enforce any rights in respect of any Collateral; (f) to settle, compromise, compound, adjust or defend any actions, suits or proceedings relating to all or any
of the Collateral; (g) to notify, or to require any Grantor to notify, Account Debtors to make payment directly to the Collateral Agent; and (h) to use, sell, assign, transfer, pledge, make any agreement with respect to or otherwise deal
with all or any of the Collateral, and to do all other acts and things necessary to carry out the purposes of this Agreement, as fully and completely as though the Collateral Agent were the absolute owner of the Collateral for all purposes;
provided that nothing herein contained shall be construed as requiring or obligating the Collateral Agent to make any commitment or to make any inquiry as to the nature or sufficiency of any payment received by the Collateral Agent, or to
present or file any claim or notice, or to take any action with respect to the Collateral or any part thereof or the moneys due or to become due in respect thereof or any property covered thereby. The Collateral Agent and the other Secured Parties
shall be accountable only for amounts actually received as a result of the exercise of the powers granted to them herein, and neither they nor their officers, 

  

 32 

 
directors, employees or agents shall be responsible to any Grantor for any act or failure to act hereunder, except for their own gross negligence or wilful
misconduct. 
  
 SECTION 7.16. Compliance with Laws.
Notwithstanding anything herein which may be construed to the contrary, no action shall be taken by any of the Collateral Agent and the Secured Parties with respect to the Licenses or any license, permit, certificate or authorization of the FCC or
any other federal, state or local regulatory or governmental bodies applicable to or having jurisdiction over any Grantor unless and until any required approval under the Communications Act or any other applicable communications law, and any
applicable rules and regulations thereunder, requiring the consent to or approval of such action by the FCC or any governmental or other communications authority, have been satisfied and, to the extent applicable, any action taken with respect to,
concerning or affecting the Collateral, directly or indirectly, or any Security Interest granted therein by the Collateral Agent and the Secured Parties shall be subject to any required approval of the FCC and any state or local communications
regulatory authority and all applicable communications laws. 
  

 33 

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

							
	 HAWAIIAN TELCOM HOLDCO, INC.,

			
	 	 	By	 	 /s/ Michael S. Ruley

	 	 	 	 	 Name:
	 	 Michael S. Ruley

	 	 	 	 	 Title:
	 	 Chief Executive Officer

	
	 HAWAIIAN TELCOM
 COMMUNICATIONS, INC.,

			
	 	 	by	 	 /s/ Michael S. Ruley

	 	 	 	 	 Name:
	 	 Michael S. Ruley

	 	 	 	 	 Title:
	 	 Chief Executive Officer

	
	 HAWAIIAN TELCOM INC.,

			
	 	 	by	 	 /s/ Michael S. Ruley

	 	 	 	 	 Name:
	 	 Michael S. Ruley

	 	 	 	 	 Title:
	 	 Chief Executive Officer

	
	 HAWAIIAN TELCOM SERVICES
 COMPANY, INC.,

			
	 	 	by	 	 /s/ Michael S. Ruley

	 	 	 	 	 Name:
	 	 Michael S. Ruley

	 	 	 	 	 Title:
	 	 Chief Executive Officer

	
	 JPMORGAN CHASE BANK, N.A., AS
 COLLATERAL
AGENT,

			
	 	 	by	 	 /s/ John Kowalczuk

	 	 	 	 	 Name:
	 	 John Kowalczuk

	 	 	 	 	 Title:
	 	 Vice President

 Schedule I to 
 the Guarantee and 
 Collateral Agreement 
  
 SUBSIDIARY LOAN PARTIES 

 Schedule II to 
 the Guarantee and 
 Collateral Agreement 
  
 EQUITY INTERESTS 
  

									
	 Issuer

	 	 Number of
 Certificate

	 	 Registered
 Owner

	 	 Number and Class of
Equity Interest

	 	 Percentage
 of Equity Interests

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  
 DEBT SECURITIES

  

							
	 Issuer

	 	 Principal
 Amount

	 	 Date of Note

	 	 Maturity Date

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 Schedule III to 
 the Guarantee and 
 Collateral Agreement 
  
 U.S. COPYRIGHTS OWNED BY [NAME OF GRANTOR] 
  
 [Make a separate page of Schedule III for each Grantor and state if no copyrights are owned. List in numerical order by Registration
No.] 
  
 U.S. Copyright Registrations 
  

					
	 Title

	 	 Reg. No.

	 	 Author

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

  
 Pending U.S.
Copyright Applications for Registration 
  

							
	 Title

	 	 Author

	 	 Class

	 	 Date Filed

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  
 Non-U.S. Copyright
Registrations 
  
 [List in alphabetical order by country/numerical order by
Registration No. within each country] 
  

							
	 Country

	 	 Title

	 	 Reg. No.

	 	 Author

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  
 Non-U.S. Pending
Copyright Applications for Registration 
  
 [List in alphabetical order by
country.] 
  

									
	 Country

	 	 Title

	 	 Author

	 	 Class

	 	 Date Filed

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 Schedule III to 
 the Guarantee and 
 Collateral Agreement 
  
 PATENTS OWNED BY [NAME OF GRANTOR] 
  

[Make a separate page of Schedule III for each Grantor and state if no patents are owned. List in numerical order by Patent No./Patent Application No.] 
  
 U.S. Patent Registrations 
  

			
	 Patent Numbers

	 	 Issue Date

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

  
 U.S. Patent
Applications 
  

			
	 Patent Application No.

	 	 Filing Date

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

  
 Non-U.S. Patent
Registrations 
  
 [List in alphabetical order by country/numerical order by
Patent No. within each country] 
  

					
	 Country

	 	 Issue Date

	 	 Patent No.

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

  
 Non-U.S. Patent
Applications 
  
 [List in alphabetical order by country/numerical order by
Application No. within each country] 
  

					
	 Country

	 	 Filing Date

	 	 Patent Application No.

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 Schedule III to 
 the Guarantee and 
 Collateral Agreement 
  
 TRADEMARK/TRADE NAMES OWNED BY [NAME OF GRANTOR] 
  
 [Make a separate page of Schedule III for each Grantor and state if no trademarks/trade names are owned. List in numerical order by
trademark registration/application no.] 
  
 U.S. Trademark
Registrations 
  

					
	 Mark

	 	 Reg. Date

	 	 Reg. No.

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

  
 U.S. Trademark
Applications 
  

					
	 Mark

	 	 Filing Date

	 	 Application No.

	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

  
 State Trademark
Registrations 
  
 [List in alphabetical order
by state/numerical order by trademark no. within each state] 
  

							
	 State

	 	 Mark

	 	 Filing Date

	 	 Application No.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  
 Non-U.S. Trademark
Registrations 
  
 [List in alphabetical order
by country/numerical order by trademark no. within each country] 
  

							
	 Country

	 	 Mark

	 	 Reg. Date

	 	 Reg. No.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 Schedule III to 
 the Guarantee and 
 Collateral Agreement 
  
 Non-U.S. Trademark Applications 
  
 [List in alphabetical order by country/numerical order by application no.] 
  

							
	 Country

	 	 Mark

	 	 Application Date

	 	 Application No.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  
 Trade Names

  

			
	 Country(s) Where Used

	 	 Trade Names

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

 Exhibit I to the 
 Guarantee and 
 Collateral Agreement 
  
 SUPPLEMENT NO. __ dated as of , to the Guarantee and Collateral Agreement dated as of [ ], among HAWAIIAN TELCOM
COMMUNICATIONS, INC., a Delaware corporation (the “Borrower”), HAWAIIAN TELCOM HOLDCO, INC., a Delaware corporation (“Holdings”), each subsidiary of the Borrower listed on Schedule I thereto (each such subsidiary
individually a “Subsidiary Guarantor” and collectively, the “Subsidiary Guarantors”; the Subsidiary Guarantors, Holdings and the Borrower are referred to collectively herein as the “Grantors”) and
JPMORGAN CHASE BANK, N.A., a national banking association (“JPMCB”), as Collateral Agent (in such capacity, the “Collateral Agent”). 
  
 A. Reference is made to the Credit Agreement dated as of May 2, 2005 (as amended, supplemented or otherwise modified from
time to time, the “Credit Agreement”), among the Borrower, Holdings, the lenders from time to time party thereto and, JPMCB, as Administrative Agent. 
  
 B. Capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the
Credit Agreement and the Collateral Agreement referred to therein. 
  
 C. The Grantors have entered into the Collateral Agreement in order to induce the Lenders to make Loans and the Issuing Bank to issue Letters of Credit. Section 7.14 of Collateral Agreement provides that additional Subsidiaries of the
Borrower may become Subsidiary Loan Parties under the Collateral Agreement by execution and delivery of an instrument in the form of this Supplement. The undersigned Subsidiary (the “New Subsidiary”) is executing this Supplement in
accordance with the requirements of the Credit Agreement to become a Subsidiary Loan Party under the Collateral Agreement in order to induce the Lenders to make additional Loans and the Issuing Bank to issue additional Letters of Credit and as
consideration for Loans previously made and Letters of Credit previously issued. 
  
 Accordingly, the Collateral Agent and the New Subsidiary agree as follows: 
  
 SECTION 1. In accordance with Section 7.14 of the Collateral Agreement, the New Subsidiary by its signature below becomes a Subsidiary Loan Party
(and accordingly, becomes a Guarantor and a Grantor), Grantor and Guarantor under the Collateral Agreement with the same force and effect as if originally named therein as a Subsidiary Loan Party and the New Subsidiary hereby (a) agrees to all
the terms and provisions of the Collateral Agreement applicable to it as a Subsidiary Loan Party, Grantor and Guarantor thereunder and (b) represents and warrants that the representations and warranties made by it as a Grantor and Guarantor
thereunder are true and correct on 

 
and as of the date hereof. In furtherance of the foregoing, the New Subsidiary, as security for the payment and performance in full of the Obligations (as
defined in the Collateral Agreement), does hereby create and grant to the Collateral Agent, its successors and assigns, for the benefit of the Secured Parties, their successors and assigns, a security interest in and lien on all of the New
Subsidiary’s right, title and interest in and to the Collateral (as defined in the Collateral Agreement) of the New Subsidiary. Each reference to a “Guarantor” or “Grantor” in the Collateral Agreement shall be deemed to
include the New Subsidiary. The Collateral Agreement is hereby incorporated herein by reference. 
  
 SECTION 2. The New Subsidiary represents and warrants to the Collateral Agent and the other Secured Parties that this Supplement has been duly authorized,
executed and delivered by it and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms. 
  
 SECTION 3. This Supplement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an
original, but all of which when taken together shall constitute a single contract. This Supplement shall become effective when the Collateral Agent shall have received a counterpart of this Supplement that bears the signature of the New Subsidiary
and the Collateral Agent has executed a counterpart hereof. Delivery of an executed signature page to this Supplement by facsimile transmission shall be as effective as delivery of a manually signed counterpart of this Supplement. 
  
 SECTION 4. The New Subsidiary hereby represents and warrants that
(a) set forth on Schedule I attached hereto is a true and correct schedule of the location of any and all Collateral of the New Subsidiary and (b) set forth under its signature hereto, is the true and correct legal name of the New
Subsidiary, its jurisdiction of formation and the location of its chief executive office. 
  
 SECTION 5. Except as expressly supplemented hereby, the Collateral Agreement shall remain in full force and effect. 
  
 SECTION 6. THIS SUPPLEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 
  
 SECTION 7. In case any one or more of the provisions contained in this
Supplement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein and in the Collateral Agreement shall not in any way be affected or impaired thereby
(it being understood that the invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations
to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
  

 2 

 SECTION 8. All communications and notices hereunder shall be in writing and given as provided in
Section 7.01 of the Collateral Agreement. 
  
 SECTION 9. The
New Subsidiary agrees to reimburse the Collateral Agent for its reasonable out-of-pocket expenses in connection with this Supplement, including the reasonable fees, other charges and disbursements of counsel for the Collateral Agent. 
  
 IN WITNESS WHEREOF, the New Subsidiary and the Collateral Agent have duly
executed this Supplement to the Collateral Agreement as of the day and year first above written. 
  

							
	 [NAME OF NEW SUBSIDIARY],

			
	 	 	by	 	 
	 	 	 	 	 Name:
	 	 
	 	 	 	 	 Title:
	 	 
			
	 	 	 	 	 Legal Name:

	 	 	 	 	 Jurisdiction of Formation:

	
	 JPMORGAN CHASE BANK, N.A.,
 AS COLLATERAL AGENT,

			
	 	 	by	 	 
	 	 	 	 	 Name:
	 	 
	 	 	 	 	 Title:
	 	 

  

 3 

 Schedule I 
 to the Supplement No __ to the 
 Guarantee and 
 Collateral Agreement 
  
 LOCATION OF COLLATERAL 
  

			
	 Description

	 	 Location

	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 

  
 EQUITY INTERESTS

  

									
	 Issuer

	 	 Number of
 Certificate

	 	 Registered
 Owner

	 	 Number and
 Class of
 Equity Interests

	 	 Percentage
 of Equity Interests

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

  
 DEBT SECURITIES

  

							
	 Issuer

	 	 Principal
 Amount

	 	 Date of Note

	 	 Maturity Date

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  
 INTELLECTUAL PROPERTY

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