Document:

Exhibit 4.1

  

 

 

 

 

 

 

	
   

  

 

 

 

$225,000,000

 

 

Credit Agreement

 

 

Dated as of January 21, 2015

 

Among

 

 

United States Cellular
Corporation

as the Borrower,

 

CoBank, ACB

As the Administrative Agent, the Lead
Arranger, the Sole Bookrunner and Lender

 

 

and

 

 

The Other Lenders Party Hereto

 

 

	
   

  

 

 

 

 

 

 

	
  TABLE OF CONTENTS

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  Page

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE I.
  DEFINITIONS AND ACCOUNTING TERMS

  	
  1 

  
	
    

  	
  1.01 

  	
  Defined Terms....................................................................................................................................................................................................................................... 

  	
  1 

  
	
    

  	
  1.02 

  	
  Other
  Interpretive Provisions.............................................................................................................................................................................................................. 

  	
  23 

  
	
    

  	
  1.03 

  	
  Accounting
  Terms................................................................................................................................................................................................................................ 

  	
  24 

  
	
    

  	
  1.04 

  	
  Rounding................................................................................................................................................................................................................................................ 

  	
  25 

  
	
    

  	
  1.05 

  	
  Times of Day......................................................................................................................................................................................................................................... 

  	
  25 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE II.
  THE COMMITMENTS

  	
  25 

  
	
    

  	
  2.01 

  	
  Committed Loans................................................................................................................................................................................................................................ 

  	
  25 

  
	
    

  	
  2.02 

  	
  Borrowings,
  Conversions and Continuations of Committed Loans........................................................................................................................................... 

  	
  25 

  
	
    

  	
  2.03 

  	
  Prepayments.......................................................................................................................................................................................................................................... 

  	
  27 

  
	
    

  	
  2.04 

  	
  Termination or
  Reduction of Commitments................................................................................................................................................................................... 

  	
  28 

  
	
    

  	
  2.05 

  	
  Repayment of
  Loans........................................................................................................................................................................................................................... 

  	
  29 

  
	
    

  	
  2.06 

  	
  Interest.................................................................................................................................................................................................................................................... 

  	
  30 

  
	
    

  	
  2.07 

  	
  Fees......................................................................................................................................................................................................................................................... 

  	
  31 

  
	
    

  	
  2.08 

  	
  Computation of
  Interest and Fees.................................................................................................................................................................................................... 

  	
  31 

  
	
    

  	
  2.09 

  	
  Evidence of
  Debt.................................................................................................................................................................................................................................. 

  	
  31 

  
	
    

  	
  2.10 

  	
  Payments
  Generally; Administrative Agent's Clawback............................................................................................................................................................... 

  	
  32 

  
	
    

  	
  2.11 

  	
  Sharing of
  Payments by Lenders....................................................................................................................................................................................................... 

  	
  34 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE III.
  TAXES, YIELD PROTECTION AND ILLEGALITY

  	
  35 

  
	
    

  	
  3.01 

  	
  Taxes...................................................................................................................................................................................................................................................... 

  	
  35 

  
	
    

  	
  3.02 

  	
  Illegality.................................................................................................................................................................................................................................................. 

  	
  40 

  
	
    

  	
  3.03 

  	
  Inability to
  Determine Rates.............................................................................................................................................................................................................. 

  	
  40 

  
	
    

  	
  3.04 

  	
  Increased Costs..................................................................................................................................................................................................................................... 

  	
  41 

  
	
    

  	
  3.05 

  	
  Compensation
  for Losses................................................................................................................................................................................................................... 

  	
  42 

  
	
    

  	
  3.06 

  	
  Mitigation
  Obligations; Replacement of Lenders; Like Treatment............................................................................................................................................ 

  	
  43 

  
	
    

  	
  3.07 

  	
  Survival.................................................................................................................................................................................................................................................. 

  	
  44 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE IV.
  CONDITIONS PRECEDENT TO Committed loans

  	
  44 

  
	
    

  	
  4.01 

  	
  Conditions of
  Initial Committed Loan............................................................................................................................................................................................. 

  	
  44 

  
	
    

  	
  4.02 

  	
  Conditions to
  all Committed Loans.................................................................................................................................................................................................. 

  	
  46 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE V.
  REPRESENTATIONS AND WARRANTIES

  	
  47 

  
	
    

  	
  5.01 

  	
  Existence,
  Qualification and Power.................................................................................................................................................................................................. 

  	
  47 

  
	
    

  	
  5.02 

  	
  Authorization;
  No Contravention..................................................................................................................................................................................................... 

  	
  47 

  
	
    

  	
  5.03 

  	
  Governmental Authorization;
  Other Consents............................................................................................................................................................................... 

  	
  47 

  
	
    

  	
  5.04 

  	
  Binding Effect....................................................................................................................................................................................................................................... 

  	
  47 

  
	
    

  	
  5.05 

  	
  Financial
  Statements; No Material Adverse Effect....................................................................................................................................................................... 

  	
  48 

  
	
    

  	
  5.06 

  	
  Litigation................................................................................................................................................................................................................................................ 

  	
  48 

  
	
    

  	
  5.07 

  	
  No Default............................................................................................................................................................................................................................................. 

  	
  48 

  
	
    

  	
  5.08 

  	
  Ownership of
  Property; Liens............................................................................................................................................................................................................. 

  	
  48 

  
	
    

  	
  5.09 

  	
  Environmental
  Compliance............................................................................................................................................................................................................... 

  	
  49 

  
	
    

  	
  5.10 

  	
  Insurance............................................................................................................................................................................................................................................... 

  	
  49 

  
	
    

  	
  5.11 

  	
  Taxes...................................................................................................................................................................................................................................................... 

  	
  49 

  
	
    

  	
    

  	
    

  	
    

  
	
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  5.12 

  	
  ERISA
  Compliance............................................................................................................................................................................................................................ 

  	
  49 

  
	
    

  	
  5.13 

  	
  Subsidiaries;
  Equity Interests............................................................................................................................................................................................................ 

  	
  50 

  
	
    

  	
  5.14 

  	
  Margin
  Regulations; Investment Company Act........................................................................................................................................................................... 

  	
  50 

  
	
    

  	
  5.15 

  	
  Disclosure............................................................................................................................................................................................................................................. 

  	
  51 

  
	
    

  	
  5.16 

  	
  Compliance with
  Laws...................................................................................................................................................................................................................... 

  	
  51 

  
	
    

  	
  5.17 

  	
  Taxpayer
  Identification Number..................................................................................................................................................................................................... 

  	
  51 

  
	
    

  	
  5.18 

  	
  Anti-Terrorism,
  USA Patriot Act and OFAC.................................................................................................................................................................................. 

  	
  51 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE VI.
  AFFIRMATIVE COVENANTS

  	
  52 

  
	
    

  	
  6.01 

  	
  Financial
  Statements.......................................................................................................................................................................................................................... 

  	
  52 

  
	
    

  	
  6.02 

  	
  Certificates;
  Other Information....................................................................................................................................................................................................... 

  	
  53 

  
	
    

  	
  6.03 

  	
  Notices.................................................................................................................................................................................................................................................. 

  	
  55 

  
	
    

  	
  6.04 

  	
  Payment of
  Obligations..................................................................................................................................................................................................................... 

  	
  55 

  
	
    

  	
  6.05 

  	
  Preservation of
  Existence, Etc.......................................................................................................................................................................................................... 

  	
  55 

  
	
    

  	
  6.06 

  	
  Maintenance of
  Properties; Office.................................................................................................................................................................................................. 

  	
  56 

  
	
    

  	
  6.07 

  	
  Maintenance of
  Insurance................................................................................................................................................................................................................ 

  	
  56 

  
	
    

  	
  6.08 

  	
  Compliance with
  Laws...................................................................................................................................................................................................................... 

  	
  56 

  
	
    

  	
  6.09 

  	
  Books and
  Records............................................................................................................................................................................................................................ 

  	
  56 

  
	
    

  	
  6.10 

  	
  Inspection
  Rights................................................................................................................................................................................................................................ 

  	
  57 

  
	
    

  	
  6.11 

  	
  Use of Proceeds................................................................................................................................................................................................................................... 

  	
  58 

  
	
    

  	
  6.12 

  	
  Indebtedness
  Owed to Parent Affiliated Companies................................................................................................................................................................... 

  	
  58 

  
	
    

  	
  6.13 

  	
  Further
  Assurances............................................................................................................................................................................................................................. 

  	
  58 

  
	
    

  	
  6.14 

  	
  CoBank Equity................................................................................................................................................................................................................................... 

  	
  58 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE VII.
  NEGATIVE COVENANTS

  	
  58 

  
	
    

  	
  7.01 

  	
  Liens...................................................................................................................................................................................................................................................... 

  	
  58 

  
	
    

  	
  7.02 

  	
  Investments......................................................................................................................................................................................................................................... 

  	
  60 

  
	
    

  	
  7.03 

  	
  Indebtedness........................................................................................................................................................................................................................................ 

  	
  62 

  
	
    

  	
  7.04 

  	
  Fundamental
  Changes....................................................................................................................................................................................................................... 

  	
  63 

  
	
    

  	
  7.05 

  	
  Dispositions.......................................................................................................................................................................................................................................... 

  	
  64 

  
	
    

  	
  7.06 

  	
  Restricted
  Payments........................................................................................................................................................................................................................... 

  	
  65 

  
	
    

  	
  7.07 

  	
  Transactions
  with Affiliates and Subsidiaries................................................................................................................................................................................ 

  	
  66 

  
	
    

  	
  7.08 

  	
  Burdensome Agreements.................................................................................................................................................................................................................. 

  	
  67 

  
	
    

  	
  7.09 

  	
  Use of Proceeds................................................................................................................................................................................................................................... 

  	
  67 

  
	
    

  	
  7.10 

  	
  Financial
  Covenants.......................................................................................................................................................................................................................... 

  	
  67 

  
	
    

  	
  7.11 

  	
  Governmental
  Programs.................................................................................................................................................................................................................... 

  	
  67 

  
	
    

  	
  7.12 

  	
  Anti-Terrorism,
  OFAC and USA Patriot Act.................................................................................................................................................................................. 

  	
  68 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE
  VIII. EVENTS OF DEFAULT AND REMEDIES

  	
  68 

  
	
    

  	
  8.01 

  	
  Events of
  Default................................................................................................................................................................................................................................ 

  	
  68 

  
	
    

  	
  8.02 

  	
  Remedies Upon
  Event of Default.................................................................................................................................................................................................... 

  	
  70 

  
	
    

  	
  8.03 

  	
  Application of
  Funds.......................................................................................................................................................................................................................... 

  	
  71 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE IX.
  ADMINISTRATIVE AGENT

  	
  71 

  
	
    

  	
  9.01 

  	
  Appointment and
  Authority............................................................................................................................................................................................................. 

  	
  71 

  
	
    

  	
  9.02 

  	
  Rights as a
  Lender.............................................................................................................................................................................................................................. 

  	
  72 

  
	
    

  	
    

  	
    

  	
    

  
	
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  9.03 

  	
  Exculpatory
  Provisions.......................................................................................................................................................................................................... 

  	
  72 

  
	
    

  	
  9.04 

  	
  Reliance by
  Administrative Agent....................................................................................................................................................................................... 

  	
  73 

  
	
    

  	
  9.05 

  	
  Delegation of
  Duties............................................................................................................................................................................................................... 

  	
  73 

  
	
    

  	
  9.06 

  	
  Resignation of
  Administrative Agent.................................................................................................................................................................................. 

  	
  73 

  
	
    

  	
  9.07 

  	
  Non-Reliance on
  Administrative Agent and Other Lenders............................................................................................................................................ 

  	
  74 

  
	
    

  	
  9.08 

  	
  No Other
  Duties, Etc............................................................................................................................................................................................................... 

  	
  74 

  
	
    

  	
  9.09 

  	
  Administrative
  Agent May File Proofs of Claim............................................................................................................................................................... 

  	
  74 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE X.
  MISCELLANEOUS

  	
  75 

  
	
    

  	
  10.01 

  	
  Amendments, Etc.................................................................................................................................................................................................................... 

  	
  75 

  
	
    

  	
  10.02 

  	
  Notices;
  Effectiveness; Electronic Communication......................................................................................................................................................... 

  	
  76 

  
	
    

  	
  10.03 

  	
  No Waiver; Cumulative
  Remedies; Enforcement............................................................................................................................................................ 

  	
  79 

  
	
    

  	
  10.04 

  	
  Expenses;
  Indemnity; Damage Waiver.............................................................................................................................................................................. 

  	
  79 

  
	
    

  	
  10.05 

  	
  Payments Set
  Aside................................................................................................................................................................................................................ 

  	
  81 

  
	
    

  	
  10.06 

  	
  Successors and
  Assigns.......................................................................................................................................................................................................... 

  	
  81 

  
	
    

  	
  10.07 

  	
  Treatment of
  Certain Information; Confidentiality......................................................................................................................................................... 

  	
  86 

  
	
    

  	
  10.08 

  	
  Right of Setoff......................................................................................................................................................................................................................... 

  	
  87 

  
	
    

  	
  10.09 

  	
  Interest Rate
  Limitation......................................................................................................................................................................................................... 

  	
  87 

  
	
    

  	
  10.10 

  	
  Counterparts;
  Integration; Effectiveness........................................................................................................................................................................... 

  	
  87 

  
	
    

  	
  10.11 

  	
  Survival of
  Representations and Warranties..................................................................................................................................................................... 

  	
  88 

  
	
    

  	
  10.12 

  	
  Severability............................................................................................................................................................................................................................... 

  	
  88 

  
	
    

  	
  10.13 

  	
  Replacement of
  Lenders........................................................................................................................................................................................................ 

  	
  88 

  
	
    

  	
  10.14 

  	
  Governing Law; Jurisdiction;
  Etc......................................................................................................................................................................................... 

  	
  89 

  
	
    

  	
  10.15 

  	
  Waiver of Jury
  Trial................................................................................................................................................................................................................ 

  	
  90 

  
	
    

  	
  10.16 

  	
  No Advisory or
  Fiduciary Responsibility............................................................................................................................................................................ 

  	
  90 

  
	
    

  	
  10.17 

  	
  Electronic
  Execution of Assignments and Certain Other Documents........................................................................................................................... 

  	
  91 

  
	
    

  	
  10.18 

  	
  USA PATRIOT Act................................................................................................................................................................................................................. 

  	
  91 

  
	
    

  	
  10.19 

  	
  Time of the
  Essence................................................................................................................................................................................................................ 

  	
  91 

  
	
    

  	
  10.20 

  	
  Designation as
  Senior Debt.................................................................................................................................................................................................... 

  	
  91 

  
	
    

  	
  10.21 

  	
  FCC Approval.......................................................................................................................................................................................................................... 

  	
  91 

  
	
    

  	
  10.22 

  	
  Entire
  Agreement..................................................................................................................................................................................................................... 

  	
  92 

  
	
    

  	
    

  	
    

  	
    

  
	
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  SCHEDULES

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
  1.01 

  	
  Special
  Entities

  	
    

  
	
    

  	
  2.01 

  	
  Commitments and
  Applicable Percentages

  	
    

  
	
    

  	
  5.05 

  	
  Supplement to
  Interim Financial Statements

  	
    

  
	
    

  	
  5.13 

  	
  Subsidiaries;
  Other Equity Investments

  	
    

  
	
    

  	
  7.01 

  	
  Existing Liens

  	
    

  
	
    

  	
  7.03 

  	
  Existing
  Indebtedness

  	
    

  
	
    

  	
  7.07 

  	
  Existing
  Transactions with Affiliates

  	
    

  
	
    

  	
  10.02 

  	
  Administrative
  Agent's Office; Certain Addresses for Notices

  	
    

  
	
    

  	
  10.06 

  	
  Voting
  Participants

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  EXHIBITS

  	
    

  
	
    

  	
  Form of

  	
    

  	
    

  
	
    

  	
  A

  	
  Committed Loan
  Notice

  	
    

  
	
    

  	
  B

  	
  Note

  	
    

  
	
    

  	
  C

  	
  Compliance
  Certificate

  	
    

  
	
    

  	
  D-1

  	
  Assignment and
  Assumption

  	
    

  
	
    

  	
  D-2

  	
  Administrative
  Questionnaire

  	
    

  
	
    

  	
  E

  	
  Opinion Matters

  	
    

  
	
    

  	
  F

  	
  Subordination
  Agreement

  	
    

  
	
    

  	
  G

  	
  U.S. Tax
  Compliance Certificates

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  - iv -

  

 

 

 

$225,000,000

UNITED STATES CELLULAR
CORPORATION

CREDIT AGREEMENT

This CREDIT AGREEMENT
("Agreement") is entered into as of January 21, 2015,
among UNITED STATES CELLULAR CORPORATION, a Delaware corporation (the "Borrower"),
each lender from time to time party hereto (collectively, the "Lenders"
and individually, a "Lender"), and COBANK, ACB, as
Administrative Agent.

The Borrower has requested
that the Lenders provide a term loan credit facility, and the Lenders are
willing to do so on the terms and conditions set forth herein.

In consideration of the
mutual covenants and agreements herein contained, the parties hereto covenant
and agree as follows:

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

1.01           
Defined Terms.  As used in this Agreement, the following terms
shall have the meanings set forth below:

"Administrative
Agent" means CoBank in its capacity as administrative agent under
any of the Loan Documents, or any successor administrative agent.

"Administrative
Agent's Office" means the
Administrative Agent's address as set forth on
Schedule 10.02, or such other address as the Administrative Agent may
from time to time notify to the Borrower and the Lenders.

"Administrative
Questionnaire" means an Administrative Questionnaire in
substantially the form of Exhibit D-2 or any other form approved by the
Administrative Agent.

"Affiliate"
means, in relation to the Borrower, any of its Subsidiaries or the Parent
Company, any Person that would be considered to be an affiliate of the
Borrower, any of its Subsidiaries or, as the case may be, the Parent Company
under Rule 144(a) of the Rules and Regulations of the Securities and Exchange
Commission, as in effect on the date hereof, if the Borrower, any of its
Subsidiaries or, as the case may be, the Parent Company were issuing
securities; and, in relation to any Lender or any other Person, any Person
directly or indirectly Controlling, Controlled by or under direct or indirect
common Control with the Lender or such other Person.

"Aggregate
Commitments" means the Commitments of all the Lenders.

"Agreement"
means this Credit Agreement.

“Anti-Terrorism Laws” means
any Laws relating to financing terrorism, “know your customer” or money
laundering, including Executive Order No. 13224, the USA Patriot Act, the

CREDIT AGREEMENT – Page 1 

 

 

 

Laws comprising or
implementing the Bank Secrecy Act, and the Laws administered by the United
States Treasury Department's Office of Foreign Asset Control.

"Applicable
Percentage" means with respect to any Lender at any time, the
percentage (carried out to the ninth decimal place) of the Aggregate
Commitments represented by such Lender's Commitment at such time provided that,
in the case of Section 2.10 with respect to payments to be distributed
by the Administrative Agent to Lenders, when a Defaulting Lender shall exist,
"Applicable Percentage" shall mean the percentage of the Aggregate
Commitment (disregarding any Defaulting Lender's Commitment) represented by
such Lender's Commitment at such time.  If the commitment of each Lender to
make Loans has been terminated pursuant to Section 8.02 or if the
Aggregate Commitments have expired, then the Applicable Percentage of each Lender
shall be determined based on the Applicable Percentage of such Lender most
recently in effect, giving effect to any subsequent assignments.  The initial
Applicable Percentage of each Lender is set forth opposite the name of such
Lender on Schedule 2.01 or in the Assignment and Assumption pursuant to
which such Lender becomes a party hereto, as applicable.

"Applicable
Rate" means, from time to time, the following percentages per
annum, based upon the Debt Rating as set forth below:

	
   Level

   	
   Debt Rating

   (S&P Rating, Moody's Rating and Fitch Rating, in that order)

   	
   Commitment Fee

   	
   Applicable Margin for Eurodollar Rate

    

   	
   Applicable Margin for Base Rate

    

   
	
  I

  	
  ≥ A- /A3 /A -

  	
  0.125%

  	
  1.625%

  	
  0.625%

  
	
  II

  	
  BBB+ /Baa1/ BBB+

  	
  0.150%

  	
  1.750%

  	
  0.750%

  
	
  III

  	
  BBB /Baa2 /BBB

  	
  0.175%

  	
  2.000%

  	
  1.000%

  
	
  IV

  	
  BBB- /Baa3/ BBB-

  	
  0.225%

  	
  2.250%

  	
  1.250%

  
	
  V

  	
  ≤ BB+ /Ba1 /BB+

  	
  0.300%

  	
  2.500%

  	
  1.500%

  

 

In
the event that the Debt Ratings of any two ratings agencies are at the same
Level, pricing shall be based upon such Level, and in the event that each of
the three Debt Ratings are at different Levels, pricing shall be based upon the
middle rating (i.e., the highest and lowest ratings shall be disregarded); provided 
that, notwithstanding the preceding,

(a)                
If any rating agency shall change
the basis on which ratings are established, each reference to Moody's Rating,
S&P Rating or Fitch Rating shall refer to the then equivalent rating by the
applicable rating agency;

(b)                
in the event that the Borrower has
ratings from only two rating agencies and (i) they are split-rated by no
more than one level, the Moody's Rating or the S&P Rating level will apply
(and if both the Moody's Rating and the S&P Rating are the surviving
ratings, then the level applicable to the higher of the two shall apply) or

 

CREDIT AGREEMENT – Page 2 

 

 

 

(ii) they are split-rated by more than one level, the level one
level higher than the lowest rating will apply;

(c)                
If the Borrower has ratings from
only one rating agency, then pricing will be based on the next lower Level from
that rating;

(d)                
If the rating system of S&P,
Moody's or Fitch shall change, or if each of such rating agencies shall cease
to be in the business of rating corporate debt obligations generally, then the
most recently applicable Level shall apply for the next 30 days so long as the
Borrower is negotiating in good faith to reach an amendment to the pricing
provisions with the Lenders and after the expiration of such 30 day period,
pricing shall be based on Level V; and

(e)                
If the Borrower has no S &P
Rating, Moody's Rating or Fitch Rating, for any reason other than such agency's
ceasing to be in the business of rating corporate debt obligations generally,
then pricing will be based on Level V.

Initially, the
Applicable Rate shall be determined based upon the Debt Rating specified in the
certificate delivered pursuant to Section 4.01(a)(vii).  Thereafter,
each change in the Applicable Rate resulting from a publicly announced change
in the Debt Rating shall be effective, during the period commencing on the date
of the public announcement thereof and ending on the date immediately preceding
the effective date of the next such change.

"Approved Fund"
means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that
administers or manages a Lender.

"Assignee Group"
means two or more Eligible Assignees that are Affiliates of one another or two
or more Approved Funds managed by the same investment advisor.

"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 10.06(b)), and accepted by the Administrative Agent, in
substantially the form of Exhibit D-1  or any other form approved by
the Administrative Agent.

"Attributable
Indebtedness" means, on any date, (a) in respect of any capital
lease of any Person, 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) in respect of any Synthetic Lease Obligation, the capitalized amount of
the remaining lease payments under the relevant 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.

"Audited
Financial Statements" means the audited consolidated balance sheet
of the Borrower and its Subsidiaries for the fiscal year ended December 31,
2013, and the related consolidated statements of operations, common
stockholders' equity and cash flows for such fiscal year of the Borrower and
its Subsidiaries, including the notes thereto.

CREDIT AGREEMENT – Page 3 

 

 

 

"Availability
Period" means the period from and including the Closing Date to
the earliest of (a) the Delayed Draw Termination Date, (b) the date of
termination of the Aggregate Commitments pursuant to Section 2.04, and
(c) the date of termination of the commitment of each Lender to make Loans
pursuant to Section 8.02. 

"Base Rate" means
for any day a fluctuating rate per annum equal to the highest of (a) the
sum of 1/2 of 1% plus the Federal Funds Rate for such day, (b) the Prime Rate
for such day and (c) the sum of (i) 1.00% plus (ii) the Eurodollar Rate
(for an Interest Period of one month, determined in accordance with
subsection (b) of the definition of Eurodollar Rate).  Any change in the
Base Rate due to a change in the calculation thereof shall be effective at the
opening of business on the first Business Day of each week or, if determined
more frequently, at the opening of business on the first Business Day
immediately following the date of such determination and without necessity of
notice being provided to the Borrower or any other Person.

"Base Rate
Committed Loan" means a Committed Loan that is a Base Rate Loan.

"Base Rate Loan"
means a Loan that bears interest based on
the Base Rate.

"Borrower"
has the meaning specified in the introductory paragraph hereto.

"Borrower
Materials" has the meaning specified in Section 6.02. 

"Borrowing"
means a Committed Borrowing.

"Business Day"
means any day other than a Saturday, Sunday or other day on which commercial
banks are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent's Office is located and, if such day relates to
any Eurodollar Rate Loan, means any such day on which dealings in Dollar
deposits are conducted by and between banks in the London interbank eurodollar
market.

"Carlson Family
Group" means any and all of the following persons: (a) LeRoy
T. Carlson or his spouse, Margaret Carlson; (b) any child, grandchild, great
grandchild or other lineal descendant of LeRoy T. Carlson and Margaret Carlson,
including any Person with such relationship by adoption, or the spouse of any
such Person; (c) the estate of any of the Persons described in subsections
(a) and (b); (d) any trust or similar arrangement, provided  that Persons
described in subsections (a), (b), or (c) are the beneficiaries of more
than fifty percent (50%) of the beneficial interests in such trust or
arrangement; (e) the voting trust which expires on June 30, 2035, as
amended from time to time, or any successor to such voting trust, including the
trustees of such voting trust; and (f) any corporation, partnership,
limited liability company or other entity in which Persons identified in
subsections (a) through (e) own more than fifty percent (50%) of the
voting interests in the election of directors or other management of such
entity.

"Cash
Equivalents" means any of the following types of Investments, to
the extent owned by the Borrower or any of its Subsidiaries free and clear of
all Liens:

 

CREDIT AGREEMENT – Page 4 

 

 

 

(a)                
readily marketable obligations
issued or directly and fully guaranteed or insured by the United States of
America or any agency or instrumentality thereof; provided that the full faith
and credit of the United States of America (including, without limitation, the
Federal Deposit Insurance Corporation) is pledged in support thereof;

(b)                
time deposits with, or insured
certificates of deposit or bankers' acceptances of, any commercial bank that is
a member of the Federal Reserve System and whose deposits are fully insured by
the Federal Deposit Insurance Corporation; 

(c)                
commercial paper in an aggregate
amount of no more than $20,000,000 per issuer outstanding at any time issued by
any Person organized under the laws of any state of the United States of
America and rated at least "P-1" (or the then equivalent grade) by
Moody's or at least "A-1" (or the then equivalent grade) by S&P
or at least "F-1" (or the then equivalent grade) by Fitch, in each
case with maturities of not more than 180 days from the date of acquisition
thereof;

(d)                
securities with maturities of one
year or less from the date of acquisition issued or fully guaranteed by any
state, commonwealth or territory of the United States, by any political
subdivision or taxing authority of any such state, commonwealth or territory or
by any foreign government, the securities of which state, commonwealth,
territory, political subdivision, taxing authority or foreign government (as
the case may be) are rated at least A by S&P, A2 by Moody's or A by Fitch;

(e)                
demand deposit accounts maintained
in the ordinary course of business;

(f)                 
money market funds that (i) comply
with the criteria set forth in SEC Rule 2a-7 under the Investment Company Act
of 1940, as amended from time to time, (ii) are rated "AAA" by
S&P, "Aaa" by Moody's or "AAA" by Fitch and (iii) have
portfolio assets of at least $1,000,000,000; and

(g)                
Investments, classified in
accordance with GAAP as current assets of the Borrower or any of its
Subsidiaries, in money market investment programs registered under the
Investment Company Act of 1940, which are administered by financial
institutions that have the highest rating obtainable from any of Moody's,
S&P or Fitch, and the portfolios of which are limited solely to Investments
of the character, quality and maturity described in clauses (a), (b), (c) and
(d) of this definition.

"Change in Law"
means the occurrence, after the date of this Agreement, of any of the
following:  (a) the adoption or taking effect of any law, rule, regulation or
treaty, (b) any change in any law, rule, regulation or treaty or in the
administration, interpretation, implementation or application thereof by any
Governmental Authority or (c) the making or issuance of any request, rule,
guideline or directive (whether or not having the force of law) by any
Governmental Authority; provided  that notwithstanding anything herein to
the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, guidelines or directives thereunder or
issued in connection therewith and (y) all requests, rules, guidelines or
directives promulgated by the Bank for International Settlements, the Basel
Committee on Banking Supervision (or any successor or similar authority) or the
United States or foreign regulatory

CREDIT AGREEMENT – Page 5 

 

 

 

 authorities, in each case pursuant to Basel III,
shall in each case be deemed to be a "Change in Law," regardless of
the date enacted, adopted or issued.

"Change of Control" means the occurrence of any
of the following:

(a)                
any event or series of related
events (including (x) the sale or issuance (or series of sales or
issuances) of Equity Interests of the Borrower by the Borrower or by any holder
or holders thereof, or (y) any merger, consolidation, recapitalization,
reorganization or other transaction or arrangement) as a result of which any of
the following occur: (i) the Carlson Family Group shall together cease to
be "beneficial owners" (as defined in Rule 13d‐3 under the
Exchange Act) of voting interests in the Borrower having the voting power, by
class or through a combined total voting power of all classes of Equity
Interests of the Borrower, to elect at least a majority of the members of the
board of directors of the Borrower or (ii) the Parent Company shall not Control
more than 50.1% of the voting interests in the Borrower or (iii) the Parent
Company's financial statements determined on a consolidated basis in accordance
with GAAP are not required to include the results of the Borrower;

(b)                
any "Change in Control"
or any other similar event under and as defined in any of the instruments
governing any Indebtedness of the Borrower or of any of its Subsidiaries in an
aggregate principal amount exceeding $100,000,000 shall at any time occur; or

(c)                
an event or series of events by
which during any period of 12 consecutive months, a majority of the members of
the board of directors or other equivalent governing body of the Borrower cease
to be composed of individuals (i) who were members of that board or equivalent
governing body on the first day of such period, (ii) whose election or
nomination to that board or equivalent governing body was approved by individuals
referred to in clause (i) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body or
(iii) whose election or nomination to that board or other equivalent governing
body was approved by individuals referred to in clauses (i) and (ii) above
constituting at the time of such election or nomination at least a majority of
that board or equivalent governing body (excluding, in the case of both clause
(ii) and clause (iii), any individual whose initial nomination for, or
assumption of office as, a member of that board or equivalent governing body
occurs as a result of an actual or threatened solicitation of proxies or
consents for the election or removal of one or more directors by any person or
group other than a solicitation for the election of one or more directors by or
on behalf of the board of directors).

"Closing Date"
means the first date on which all the conditions precedent in Section 4.01
are satisfied or waived in accordance with Section 10.01. 

“CoBank” means CoBank, ACB,
a federally chartered instrumentality of the United States.

"CoBank
Equities" has the meaning specified in Section 6.14.
 

CREDIT AGREEMENT – Page 6 

 

 

 

"Code"
means the Internal Revenue Code of 1986, as amended, and the rules and
regulations related thereto.

"Commitment"
means, as to each Lender, its obligation to make Committed Loans to the
Borrower pursuant to Section 2.01, in an aggregate principal amount at
any one time outstanding not to exceed the amount set forth opposite such
Lender's name on Schedule 2.01  or
in the Assignment and Assumption pursuant to which such Lender becomes a party
hereto, as applicable, as such amount may be adjusted from time to time in
accordance with this Agreement.

"Committed
Borrowing" means a borrowing consisting of simultaneous Committed
Loans of the same Type and, in the case of Eurodollar Rate Loans, having the
same Interest Period made by each of the Lenders pursuant to Section 2.01. 

"Committed Loan"
has the meaning specified in Section 2.01. 

"Committed Loan
Notice" means a notice of (a) a Committed Borrowing, (b) a
conversion of Committed Loans from one Type to the other, or (c) a continuation
of Eurodollar Rate Loans, pursuant to Section 2.02(a), which, shall be
substantially in the form of Exhibit A  or any other form approved
by the Administrative Agent (including any form on an electronic platform or
electronic transmission system as shall be approved by the Administrative
Agent), appropriately completed and signed by a Responsible Officer of the
Borrower.

"Compliance
Certificate" means a certificate substantially in the form of Exhibit
C or any other form approved by the Administrative Agent.

"Connection
Income Taxes" means Other Connection Taxes that are imposed on or
measured by net income (however denominated) or that are franchise Taxes or
branch profits Taxes.

"Consolidated
EBITDA" means, for any period, an amount equal to the sum of,
without duplication, (a) Consolidated Net Income for such period, (b) to the
extent received in cash during such period and not already included in the
Consolidated Net Income for such period, distributions from unconsolidated
entities in which the Borrower directly or indirectly owns an Equity Interest
plus (c) the following to the extent each was deducted in calculating such
Consolidated Net Income:  (i) Consolidated Interest Charges for such period,
(ii) the provision for Federal, state, local and foreign income taxes payable
by the Borrower and its Subsidiaries for such period (net of any Federal,
state, local and foreign income tax credits of the Borrower and its
Subsidiaries for such period), (iii) depreciation, amortization and accretion
expense and all other non-cash charges deducted from Consolidated Net Income
for such period which do not represent a cash item in such period and minus (d)
to the extent included in calculating such Consolidated Net Income, all
non-cash items increasing Consolidated Net Income for such period; provided
that, notwithstanding the foregoing, in no event shall any gain realized by the
Borrower or any Subsidiary as a result of the purchase of Indebtedness of the
Borrower or any Subsidiary for less than the face value of such Indebtedness be
included in Consolidated EBITDA; and provided further that, notwithstanding the
foregoing, that (1) when and to the extent that non-cash charges described in
clause (c)(iii) above become cash paid items, such

CREDIT AGREEMENT – Page 7 

 

 

 

amounts shall be deducted from Consolidated EBITDA and
(2) when and to the extent that non-cash items described in clause (d) above
become cash received items, such amounts shall be added to Consolidated EBITDA.

"Consolidated
Funded Indebtedness" means, as of any date of determination, for
the Borrower and its Subsidiaries on a consolidated basis and without
duplication, the sum of (a) the outstanding principal amount of all
obligations, whether current or long-term, for borrowed money (including
Obligations hereunder) and all obligations evidenced by bonds, debentures,
notes, loan agreements or other similar instruments (including, without
limitation, all purchase money Indebtedness and all direct obligations arising
under letters of credit (including standby and commercial), bankers'
acceptances, bank guaranties, surety bonds and similar instruments),
(b) all obligations incurred as the deferred purchase price of property or
services (other than (i) trade payables entered into in the ordinary course
of business pursuant to ordinary terms and (ii) ordinary course of
business purchase price adjustments and earnouts); (c) all reimbursement and
other payment obligations with respect to letters of credit, bankers'
acceptances, surety bonds and other similar documents; (d) all obligations
evidenced by promissory notes, bonds, debentures or other similar instruments,
including all obligations so evidenced that are incurred in connection with the
acquisition of property or any business; (e) all indebtedness created under any
conditional sale or other title retention agreements or sales of accounts
receivable; (f) all non-recourse indebtedness of the kind described in
clause (a) through clause (e) secured by Liens on property of the obligor;
(g) Attributable Indebtedness in respect of capital leases and Synthetic Lease
Obligations, (h) net obligations under any Swap Contract, (i) all
Indebtedness of the types referred to in subsections (a) through (h) above of
any partnership or joint venture (other than a joint venture that is itself a
corporation or limited liability company) in which the Borrower or a Subsidiary
is a general partner or party to such a joint venture (other than a limited
partner in a limited partnership), unless such Indebtedness is expressly made
non-recourse to the Borrower or such Subsidiary and (j) all Guarantees in
respect of indebtedness of the kind described in clause (a) through
clause (h) above; excluding up to $25,000,000 in the aggregate of
contingent liabilities of the Borrower and its Subsidiaries which are not
required by GAAP to be recorded on the balance sheet of the Borrower and its
Subsidiaries.  For all purposes of this Agreement, the term "Consolidated
Funded Indebtedness" shall not include, with respect to the Borrower and
its Subsidiaries, the contractual and other similar obligations of the Borrower
and its Subsidiaries with respect to any Monetization Transactions.  

"Consolidated
Interest Charges" means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, the aggregate amount of interest required
to be paid or payable in cash by the Borrower or any of its Subsidiaries during
such period on all Consolidated Funded Indebtedness of the Borrower or any of
its Subsidiaries outstanding during all or any part of such period, whether
such interest was or is required to be reflected as an item of expense or
capitalized, including that portion of rent expense treated as interest in
accordance with GAAP in respect of capital lease obligations (including, without
duplication, the interest for rental payments made with respect to Sale and
Leaseback Transactions) and expressly including (a) any commitment fee
payable pursuant to Section 2.07 and (b) any other scheduled commitment
fee, facility fee, utilization fee or other scheduled fee payable by the
Borrower or any Subsidiary in connection with Consolidated Funded Indebtedness
of the Borrower or any Subsidiary.

CREDIT AGREEMENT – Page 8 

 

 

 

"Consolidated
Interest Coverage Ratio" means, as of any date of determination,
the ratio of (a) Consolidated EBITDA for the period of the four prior fiscal
quarters ending on such date to (b) Consolidated Interest Charges for such
period, provided  that, notwithstanding the foregoing, for the
purposes of determination of the Consolidated Interest Coverage Ratio, in no
event shall any financial results of any Variable Interest Entity be included
in such determination, except to the extent Consolidated Interest Charges are
computed on Indebtedness of any such Variable Interest Entity which is required
by subsection (i) of the definition of Consolidated Funded Indebtedness to be
included therein.

"Consolidated
Leverage Ratio" means, as of any date of determination, the ratio
of (a) Consolidated Funded Indebtedness as of such date to (b)
Consolidated EBITDA for the period of the four fiscal quarters most recently
ended, provided  that, notwithstanding the foregoing, for the
purposes of determination of the Consolidated Leverage Ratio, in no event shall
any financial results of any Variable Interest Entity be included in such
determination, except to the extent Indebtedness of any such Variable Interest
Entity is required by subsection (i) of the definition of Consolidated
Funded Indebtedness to be included therein.

"Consolidated
Net Income" means, for any period, for the Borrower and its
Subsidiaries on a consolidated basis, the net income of the Borrower and its
Subsidiaries (excluding extraordinary gains and extraordinary losses) for that
period, determined in accordance with GAAP; provided  that,
notwithstanding anything herein to the contrary, net income attributable to
Variable Interest Entities shall be excluded from the calculation of
Consolidated Net Income.

"Consolidated
Total Assets" means, as at any date, all assets of the Borrower
and its Subsidiaries determined on a consolidated basis in accordance with
GAAP.

"Contractual
Obligation" means, as to any Person, any provision of any security
issued by such Person or of any material agreement, material instrument or
other material undertaking to which such Person is a party or by which it or
any material amount of its property is bound.

"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.

"Debt Rating"
means, as of any date of determination, the S&P Rating, Moody's Rating or
Fitch Rating (collectively, such ratings referred to as the "Debt
Ratings").   

"Debtor Relief
Laws" means the Bankruptcy Code of the United States, and all
other liquidation, conservatorship, bankruptcy, assignment for the benefit of
creditors, moratorium, rearrangement, receivership, insolvency, reorganization,
or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors
generally.

"Default"
means any event or condition that constitutes an Event of Default or that, with
the giving of any notice, the passage of time, or both, would be an Event of
Default.

 

CREDIT AGREEMENT – Page 9 

 

 

 

"Default
Rate" means an interest rate equal to (a) the Base Rate plus 
(b) the Applicable Rate, if any, applicable to Base Rate Loans plus  (c)
2% per annum; provided, however, that with respect to a
Eurodollar Rate Loan, the Default Rate shall be an interest rate equal to the
interest rate (including any Applicable Rate) otherwise applicable to such Loan
plus  2% per annum.

"Defaulting
Lender" means any Lender, as determined by the Administrative
Agent, that has (a) has failed to fund any portion of the Committed Loans
required to be funded by it hereunder within one Business Day of the date
required to be funded by it hereunder, (b) notified the Borrower or the Administrative
Agent in writing that it does not intend to comply with any of its funding
obligations under this Agreement or has made a public statement to the effect
that it does not intend to comply with its funding obligations under this
Agreement or under other agreements in which it commits to extend credit, (c)
failed, within three Business Days after request by the Administrative Agent,
to confirm that it will comply with the terms of this Agreement relating to its
obligations to fund prospective Loans, (d) otherwise failed to pay over to the
Administrative Agent or any other Lender any other amount required to be paid
by it hereunder within one Business Day of the date when due, unless the
subject of a good faith dispute, or (e) (i) become or is insolvent or (ii)
become the subject of a bankruptcy or insolvency proceeding, or has had a
receiver, conservator, trustee, administrator, assignee for the benefit of
creditors or similar Person charged with reorganization or liquidation of its
business or custodian, appointed for it, or has taken any action in furtherance
of, or indicating its consent to, approval of or acquiescence in any such
proceeding or appointment.

“Delayed Draw
Termination Date” means July 21, 2015, provided, however,
that if such date is not a Business day, the Delayed Draw Termination Date
shall be the next preceding Business Day.

"Disposition"
or "Dispose" means any sale, transfer, or other
disposition of any property by any Person, including without limitation (a) any
Sale and Leaseback Transaction and (b) any sale, assignment, transfer or
other disposal, with or without recourse, of any notes or accounts receivable
or any rights and claims associated therewith.

"Dollar"
and "$" mean lawful money of the United States.

"Eligible
Assignee" means any Person that meets the requirements to be an
assignee under Section 10.06(b)(iii), (v)  and (vi) 
(subject to such consents, if any, as may be required under Section
10.06(b)(iii)). 

"Environmental
Laws" means any and all Federal, state, local, and foreign
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees,
permits, concessions, grants, franchises, licenses, agreements or governmental
restrictions relating to pollution and the protection of the environment or the
release of any materials into the environment, including those related to
hazardous substances or wastes, air emissions and discharges to waste or public
systems.

"Environmental
Liability" means any liability, contingent or otherwise (including
any liability for damages, costs of environmental remediation, fines, penalties
or indemnities), of the Borrower or any of its Subsidiaries directly or
indirectly resulting from or based upon

 

CREDIT AGREEMENT – Page 10 

 

 

 

(a) violation of 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 or threatened release of any Hazardous
Materials into the environment 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
Interests" means, with respect to any Person, all of the
outstanding shares of capital stock of (or other ownership or profit interests
in) such Person, all of the outstanding warrants, options or other rights for
the purchase or acquisition from such Person of shares of capital stock of (or
other ownership or profit interests in) such Person, all of the outstanding
securities convertible into or exchangeable for shares of capital stock of (or
other ownership or profit interests in) such Person or warrants, rights or
options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other outstanding ownership or profit
interests in such Person (including partnership, member or trust interests
therein), whether voting or nonvoting, and whether or not the shares underlying
such warrants, options, rights or other interests are outstanding on any date
of determination.

"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) under common control with the Borrower within the meaning of
Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for
purposes of provisions relating to Section 412 of the Code).

"ERISA Event"
means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject
to Section 4063 of ERISA during a plan year in which it was a substantial
employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of ERISA;
(c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate
from a Multiemployer Plan or notification that a Multiemployer Plan is in
reorganization; (d) the filing of a notice of intent to terminate, the
treatment of a Plan amendment as a termination under Section 4041 or 4041A of
ERISA, or the commencement of proceedings by the PBGC to terminate a Pension
Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds
under Section 4042 of ERISA for the termination of, or the appointment of a
trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the
imposition of any liability under Title IV of ERISA, other than for PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower
or any ERISA Affiliate.

"Eurodollar Rate" means:

(a)                
For any Interest Period with
respect to a Eurodollar Rate Loan, an interest rate per annum equal to LIBOR
for such Interest Period; or

(b)           For any
interest rate calculation with respect to a Base Rate Loan, the rate per annum (rounded
upward, if necessary, to the next whole multiple of 1/100 of 1%) equal to LIBOR
for an Interest Period of one month.

 

CREDIT AGREEMENT – Page 11 

 

 

 

"Eurodollar
Rate Loan" means a Committed Loan that bears interest at a rate
based on the Eurodollar Rate.

"Event of
Default" has the meaning specified in Section 8.01. 

"Excluded Taxes"
means any of the following Taxes imposed on or with respect to any Recipient or
required to be withheld or deducted from a payment to a Recipient,
(a) Taxes imposed on or measured by net income (however denominated),
franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a
result of such Recipient being organized under the laws of, or having its
principal office or, in the case of any Lender, its Lending Office located in,
the jurisdiction imposing such Tax (or any political subdivision thereof) or
(ii) that are Other Connection Taxes, (b) in the case of a Lender,
U.S. federal withholding Taxes imposed on amounts payable to or for the account
of such Lender with respect to an applicable interest in a Loan or Commitment
pursuant to a law in effect on the date on which (i) such Lender acquires
such interest in the Loan or Commitment (other than pursuant to an assignment
request by the Borrower under Section 10.13) or (ii) such
Lender changes its Lending Office, except in each case to the extent that,
pursuant to Section 3.01(a)(ii), (a)(iii)  or (c), amounts with
respect to such Taxes were payable either to such Lender's assignor immediately
before such Lender became a party hereto or to such Lender immediately before
it changed its Lending Office, (c) Taxes attributable to such Recipient's
failure to comply with Section 3.01(e)  and (d) any U.S.
federal withholding Taxes imposed pursuant to FATCA.

“Executive Order”
has the meaning specified in Section 7.12. 

“Farm Credit Lender” means a
federally-chartered Farm Credit System lending institution organized under the
Farm Credit Act of 1971.

"FASB ASC"
means the Accounting Standards Codification of the Financial Accounting
Standards Board.

"FATCA"
means Sections 1471 through 1474 of the Code, as of the date of this
Agreement (or any amended or successor version that is substantively comparable
and not materially more onerous to comply with), any current or future
regulations or official interpretations thereof and any agreements entered into
pursuant to Section 1471(b)(1) of the Code.

"FCC"
means The Federal Communications Commission (or any successor agency,
commission, bureau, department or other political subdivision) of the United
States.

“Federal Funds Rate” means,
for any day, the rate of interest per annum (rounded upward, if necessary, to
the nearest whole multiple of 1/100th of 1%) equal to the weighted average of
the rates on overnight federal funds transactions with members of the Federal
Reserve System arranged by federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on such date, or if no such rate is so
published on such day, on the most recent day preceding such day on which such
rate is so published.

"Fee Letter" means
the letter agreement, dated December 12, 2014, between the Borrower and
CoBank, ACB.

 

CREDIT AGREEMENT – Page 12 

 

 

 

"Fitch"
means Fitch Ratings, Inc., and any successor thereto.

"Fitch Rating"
means, at any time, the rating issued by Fitch and then in effect with respect
to the Borrower's senior unsecured long-term debt securities without
third-party credit enhancement.

"Foreign Lender"
means any Lender that is organized under the Laws of a jurisdiction other than
the United States, each State thereof and the District of Columbia. 

"FRB"
means the Board of Governors of the Federal Reserve System of the United
States.

"Fund"
means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its activities.

"GAAP"
means, except to the extent provided in Section 1.03, generally accepted
accounting principles in the United States as in effect from time to time and
set forth in the opinions and pronouncements of the Accounting Principles Board
and the American Institute of Certified Public Accountants and statements and
pronouncements of the Financial Accounting Standards Board or such other
principles as may be approved by a significant segment of the accounting
profession in the United States, that are applicable to the circumstances as of
the date of determination.

"Governmental
Authority" means the government of the United States or any other
nation, or of 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 (including
any supra-national bodies such as the European Union or the European Central
Bank).

"Government
Program" has the meaning specified in Section 7.03(h). 

"Guarantee"
means, as to any Person without duplication, (a) any payment obligation, contingent
or otherwise, of such Person guaranteeing or having the economic effect of
guaranteeing any Indebtedness payable by another Person (the "primary
obligor") in any manner, whether directly or indirectly, and
including any obligation of such Person, direct or indirect, (i) to purchase or
pay (or advance or supply funds for the purchase or payment of) such
Indebtedness, (ii) to purchase or lease property, securities or services for
the purpose of assuring the obligee in respect of such Indebtedness of the
payment of such Indebtedness, (iii) to maintain working capital, equity capital
or any other financial statement condition or liquidity or level of income or
cash flow of the primary obligor so as to enable the primary obligor to pay
such Indebtedness, or (iv) entered into for the purpose of assuring in any
other manner the obligee in respect of such Indebtedness of the payment thereof
or to protect such obligee against loss in respect thereof (in whole or in
part), or (b) any Lien on any assets of such Person securing any Indebtedness
of any other Person, whether or not such Indebtedness is assumed by such Person
(or any right, contingent or otherwise, of any holder of such Indebtedness to
obtain any such Lien), provided that the term "Guarantee" shall not
include endorsements for collection or

 

CREDIT AGREEMENT – Page 13 

 

 

 

deposit, in either case 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 (other than such obligations with
respect to Indebtedness).  The amount of any Guarantee shall be deemed to be an
amount equal to the stated or determinable amount of the related primary
payment obligation, or portion thereof, in respect of which such Guarantee is
made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof as determined by the guaranteeing Person in good
faith.  The term "Guarantee" as a verb has a
corresponding meaning.

"Hazardous
Materials" means all explosive or radioactive substances or wastes
and all hazardous or toxic substances, wastes or other pollutants, including
petroleum or petroleum distillates, asbestos or asbestos-containing materials, polychlorinated
biphenyls, radon gas, infectious or medical wastes and all other substances or
wastes of any nature regulated pursuant to any Environmental Law.

"Impacted
Lender" means a Defaulting Lender or a Lender as to which (a) the
Administrative Agent has a good faith belief that the Lender has defaulted in
fulfilling its obligations under one or more other syndicated credit facilities
or (b) an entity that Controls the Lender has been deemed insolvent or become
subject to a bankruptcy or other similar proceeding.

"Indebtedness"
means, as to any Person at a particular time, without duplication, all of the
following, whether or not included as indebtedness or liabilities in accordance
with GAAP:

(a)                
all obligations of such Person for
borrowed money and all obligations of such Person evidenced by bonds,
debentures, notes, loan agreements or other similar instruments;

(b)                
all direct or contingent
obligations of such Person arising under letters of credit (including standby
and commercial), bankers' acceptances, bank guaranties, surety bonds and
similar instruments;

(c)                
net obligations of such Person
under any Swap Contract;

(d)                
all obligations of such Person to
pay the deferred purchase price of property or services (other than (i) trade
accounts payable in the ordinary course of business and, in each case, not past
due for more than 120 days after the date on which such trade account payable
was due (unless such trade account is the subject of a good faith dispute), and
(ii) any earn-out obligation until such obligation becomes a liability on the
balance sheet of such Person in accordance with GAAP);

(e)                
indebtedness (excluding prepaid
interest thereon) secured by a Lien on property owned or being purchased by
such Person (including indebtedness arising under conditional sales or other
title retention agreements), whether or not such indebtedness shall have been
assumed by such Person or is limited in recourse;

(f)                 
capital leases and Synthetic Lease
Obligations;

 

CREDIT AGREEMENT – Page 14 

 

 

 

(g)                
all obligations of such Person to
purchase, redeem, retire, defease or otherwise make any payment, in each case,
solely to the extent such payment is required to be made in cash, in respect of
any Equity Interest in such Person or any other Person, valued, in the case of
a redeemable preferred interest, at the greater of its voluntary or involuntary
liquidation preference plus  accrued and unpaid dividends; 

(h)                
all obligations of such Person (i)
to pay deferred compensation to employees, (ii) with respect to purchase price
adjustments on acquisitions and (iii) to return customer deposits, but only in
each case to the extent that any such obligation described in
subsection (i), (ii) or (iii) preceding remains unpaid for more than 120
days after the date on which such obligation was to be paid (unless such
obligation is the subject of a good faith dispute), and

(i)                  
all Guarantees of such Person in
respect of any of the foregoing.

For all purposes
hereof, the Indebtedness of any Person shall include, without duplication, the
Indebtedness of any partnership or joint venture (other than a joint venture
that is itself a corporation or limited liability company) in which such Person
is a general partner or a party to such a joint venture (other than a limited
partner in a limited partnership), unless such Indebtedness is expressly made
non-recourse to such Person.  The amount of any net obligation under any Swap
Contract on any date shall be deemed to be the Swap Termination Value thereof
as of such date.  The amount of any capital lease or Synthetic Lease Obligation
as of any date shall be deemed to be the amount of Attributable Indebtedness in
respect thereof as of such date.

"Indemnified
Taxes" means Taxes other than Excluded Taxes.

"Indemnitees"
has the meaning specified in Section 10.04(b). 

"Information"
has the meaning specified in Section 10.07. 

"Interest
Payment Date" means, (a) as to any Loan other than a Base Rate
Loan, the last day of each Interest Period applicable to such Loan and the
Maturity Date; provided, however, that if any Interest Period for
a Eurodollar Rate Loan exceeds three months, the respective dates that fall
every three months after the beginning of such Interest Period shall also be
Interest Payment Dates; and (b) as to any Base Rate Loan, the last Business Day
of each March, June, September and December and the Maturity Date.

"Interest
Period" means, as to each Eurodollar Rate Loan, the period
commencing on the date such Eurodollar Rate Loan is disbursed or converted to
or continued as a Eurodollar Rate Loan and ending on the date one, two, three
or six months thereafter, as selected by the Borrower in its Committed Loan
Notice or such other period that is twelve months or less requested by the
Borrower and consented to by all the Lenders; provided  that:

(i)            any
Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day
falls in another calendar month, in which case such Interest Period shall end
on the next preceding Business Day;

 

CREDIT AGREEMENT – Page 15 

 

 

 

(ii)           any
Interest Period that begins on the last Business Day of a calendar month (or on
a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period) shall end on the last Business Day of the
calendar month at the end of such Interest Period; and

(iii)          no
Interest Period shall extend beyond the Maturity Date.

"Investment"
means, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
Equity Interests, debt or other securities of another Person, (b) a loan,
advance or capital contribution to, Guarantee or assumption of Indebtedness of,
or purchase or other acquisition of any other debt or equity participation or
interest in, another Person, including any partnership or joint venture
interest in such other Person and any arrangement pursuant to which the
investor Guarantees Indebtedness of such other Person, or (c) the purchase or
other acquisition (in one transaction or a series of transactions) of assets of
another Person that constitute a business unit.  For purposes of covenant
compliance, the amount of any Investment shall be the amount actually invested,
without adjustment for subsequent increases or decreases in the value of such
Investment.

"IRS"
means the United States Internal Revenue Service.

"Laws"
means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and
administrative or judicial precedents or authorities, including the
interpretation or administration thereof by any Governmental Authority charged
with the enforcement, interpretation or administration thereof, and all
applicable administrative orders, directed duties, requests, licenses,
authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

"Lender"
has the meaning specified in the introductory paragraph hereto.

"Lending Office"
means, as to any Lender, the office or offices of such Lender described as such
in such Lender's Administrative Questionnaire, or such other office or offices
as a Lender may from time to time notify the Borrower and the Administrative
Agent.

“LIBOR” means, with respect
to any Interest Period, a rate of interest reported by Bloomberg Information
Services (or on any successor or substitute service providing rate quotations
comparable to those currently provided by such service, as determined by the
Administrative Agent from time to time, for the purpose 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; provided that, in the event the
Administrative Agent is not able to determine LIBOR using such methodology, the
Administrative Agent shall notify the Borrower and the Administrative Agent and
the Borrower will agree upon a substitute basis for obtaining such quotations.

"Lien"
means any mortgage, pledge, hypothecation, assignment, deposit arrangement,
encumbrance, lien (statutory or other), charge, or preference, priority or
other security interest or preferential arrangement in the nature of a security
interest of any kind or nature whatsoever

 

CREDIT AGREEMENT – Page 16 

 

 

 

(including any conditional sale or other title
retention agreement, any easement, right of way or other encumbrance on title
to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

"Loan"
means an extension of credit by a Lender to the Borrower under Article II
in the form of a Committed Loan.

"Loan Documents"
means this Agreement, each Note, the Subordination Agreement and the Fee
Letter.

"Material
Adverse Effect" means (a) a material adverse change in, or a
material adverse effect upon, the financial condition or business of the
Borrower and its Subsidiaries taken as a whole; or (b) a material impairment of
the rights and remedies of the Administrative Agent or any Lender under any
Loan Document; or (c) a material impairment of the ability of the Borrower to
perform its obligations under any Loan Document to which it is a party; or (d)
a material adverse effect upon the legality, validity, binding effect or
enforceability against the Borrower of any Loan Document to which it is a
party. 

"Material
Subsidiary"  means any Subsidiary that is directly or indirectly
owned by the Borrower and whose total assets constitute at least 1% of
Consolidated Total Assets or whose gross revenues determined in accordance with
GAAP constitute at least 1% of the consolidated gross revenues of the Borrower
and its Subsidiaries calculated in accordance with GAAP, and "Material
Subsidiaries" means collectively each Material Subsidiary.

"Maturity Date"
means January 21, 2022, provided, however, that, if such date is
not a Business Day, the Maturity Date shall be the next preceding Business Day.

"Moody's"
means Moody's Investors Service, Inc. and any successor thereto.

"Moody's Rating"
means, at any time, the rating issued by Moody's and then in effect with
respect to the Borrower's senior unsecured long-term debt securities without
third-party credit enhancement.

"Monetization
Transaction" means, with respect to any Specified Equity Interests
owned by the Borrower or any of its Subsidiaries, any transaction, agreement,
device or arrangement (A) which results in the Borrower or any Subsidiary
receiving payments on account of entering into contractual or other similar
obligations and granting rights in, to or with respect to such Specified Equity
Interests, or (B) by which the Borrower or any Subsidiary hedges against price
fluctuation with respect to such Specified Equity Interests.

"Multiemployer
Plan" means any employee benefit plan of the type described in
Section 4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate
makes or is obligated to make contributions, or during the preceding five plan
years, has made or been obligated to make contributions.

"Net Proceeds"
means with respect to each Disposition by the Borrower or any of its
Subsidiaries under Section 7.05(g), the excess, if any, of (a) the sum
of cash and all other assets received in connection with such Disposition
(including without limitation, any cash, cash

 

CREDIT AGREEMENT – Page 17 

 

 

 

equivalents, notes, and all other assets received,
including by way of deferred payment pursuant to, or by monetization of, a note
receivable or otherwise) over (b) the sum of (i) the principal amount of any
Indebtedness that is secured by the applicable asset (so long as such security
interest was not granted in anticipation of the Disposition of such asset) and
that is required to be repaid in connection with such transaction (other than
Indebtedness under the Loan Documents), (ii) the reasonable and customary
out-of-pocket expenses incurred by the Borrower or such Subsidiary in
connection with such transaction (including reasonable brokers' fees or
commissions, legal, accounting and other professional and transactional fees)
and (iii) income taxes reasonably estimated to be actually payable within two
years of the date of the relevant transaction as a result of any gain
recognized in connection therewith; provided that, if the amount of any
estimated taxes pursuant to subsection (iii) exceeds the amount of taxes
actually required to be paid in cash in respect of such Disposition, the
aggregate amount of such excess shall constitute Net Proceeds.

"Note"
means a promissory note made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit B. 

"Obligations"
means all advances to, and debts, liabilities, obligations, covenants and
duties of the Borrower arising under any Loan Document or otherwise with
respect to any Loan, whether direct or indirect (including those acquired by
assumption), absolute or contingent, due or to become due, now existing or
hereafter arising and including interest and fees that accrue after the
commencement by or against the Borrower of any proceeding under any Debtor
Relief Laws naming the Borrower as the debtor in such proceeding, regardless of
whether such interest and fees are allowed claims in such proceeding.

"OFAC"
has the meaning specified in Section 5.18(c). 

"Ordinary
Capital Expenditures" means, with respect to any Special Entity or
Subsidiary, capital expenditures incurred in the ordinary course of business
consistent with past practices that are either related to maintenance or are
ordinary course acquisitions that are identified with an existing and ongoing
project of such Special Entity or Subsidiary.

"Organization
Documents" means, (a) with respect to any corporation, the
certificate or articles of incorporation and the bylaws (or equivalent or
comparable constitutive documents with respect to any non‐U.S.
jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement;
and (c) with respect to any partnership, joint venture, trust or other form of
business entity, the partnership, joint venture or other applicable agreement
of formation or organization and any agreement, instrument, filing or notice
with respect thereto filed in connection with its formation or organization
with the applicable Governmental Authority in the jurisdiction of its formation
or organization and, if applicable, any certificate or articles of formation or
organization of such entity.

"Other
Connection Taxes" means, with respect to any
Recipient, Taxes imposed as a result of a present or former connection between
such Recipient and the jurisdiction imposing such Tax (other than connections
arising from such Recipient having executed, delivered, become a party to,
performed its obligations under, received payments under, received or 

 

CREDIT AGREEMENT – Page 18 

 

 

 

perfected a security interest under, engaged in any
other transaction pursuant to or enforced any Loan Document, or sold or
assigned an interest in any Loan or Loan Document).

"Other Taxes"
means all present or future stamp, court or documentary, intangible, recording,
filing or similar Taxes that arise from any payment made under, from the
execution, delivery, performance, enforcement or registration of, from the
receipt or perfection of a security interest under, or otherwise with respect
to, any Loan Document, except any such Taxes that are Other Connection Taxes
imposed with respect to an assignment (other than an assignment made pursuant
to Section 3.06). 

"Outstanding
Amount" means with respect to Committed Loans on any date, the
aggregate outstanding principal amount thereof after giving effect to any
borrowings and prepayments or repayments of Committed Loans occurring on such
date.

"Parent
Affiliated Companies" means collectively, (a) the Parent Company,
and (b) all Subsidiaries and Affiliates of the Parent Company, other than the
Borrower or any of the Borrower's Subsidiaries.

"Parent Company"
means Telephone and Data Systems, Inc., a Delaware corporation.

"Parent Credit
Agreement" means that that certain Credit Agreement, dated as of
December 17, 2010, among Telephone and Data Systems, Inc., Bank of America,
N.A., as the administrative agent and the lenders party thereto from time to
time, as amended, restated and extended from time to time in accordance with
the terms thereof.

"Participant"
has the meaning specified in Section 10.06(d). 

"PBGC"
means the Pension Benefit Guaranty Corporation.

"Pension Plan"
means any "employee pension benefit plan" (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to
Title IV of ERISA and is sponsored or maintained by the Borrower or any ERISA
Affiliate or to which the Borrower or any ERISA Affiliate contributes or has an
obligation to contribute, or in the case of a multiple employer or other plan
described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five plan years.

"Person"
means any natural person, corporation, limited liability company, trust, joint
venture, association, company, partnership, Governmental Authority or other
entity.

"Plan"
means any "employee benefit plan" (as such term is defined in Section
3(3) of ERISA) established by the Borrower or, with respect to any such plan
that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA
Affiliate.

"Platform"
has the meaning specified in Section 6.02. 

"Prime Rate"
means a variable rate of interest per annum equal to
the “U.S. prime rate” as reported on such day in the Money Rates Section of the
Eastern Edition of The Wall Street Journal, or if the Eastern Edition of
The Wall Street Journal is not published on such day, such 

 

CREDIT AGREEMENT – Page 19 

 

 

 

rate as last published in the Eastern
Edition of The Wall Street Journal.  In
the event the Eastern Edition of The Wall Street Journal ceases to
publish such rate or an equivalent on a regular basis, the term “Prime Rate”
shall be determined on any day by reference to such other regularly published
average prime rate for such date applicable to such commercial banks as is
acceptable to the Administrative Agent in its sole discretion.  Any change in
Prime Rate shall be automatic, without the necessity of notice provided to the
Borrower or any other Person.

"Public Lender"
has the meaning specified in Section 6.02. 

"Recipient"
means the Administrative Agent, any Lender or any other recipient of any
payment to be made by or on account of any obligation of the Borrower
hereunder.

"Refinance"
means, with respect to any Consolidated Funded Indebtedness, to refinance,
extend, renew, refund, repay, prepay, redeem, defease or retire, or to issue
other Consolidated Funded Indebtedness in exchange, conversion or replacement
for, such Consolidated Funded Indebtedness.  "Refinances,"
"Refinanced" and "Refinancing"
shall have correlative meanings.

"Refinancing
Indebtedness" means Consolidated Funded Indebtedness of the
Borrower or of any of its Subsidiaries to any of the Parent Affiliated
Companies that Refinances any Consolidated Funded Indebtedness of the Borrower
or any of its Subsidiaries existing on the Closing Date or created, incurred or
arising in compliance with this Agreement, including any Consolidated Funded
Indebtedness that Refinances Refinancing Indebtedness; provided that:
(a) the Refinancing Indebtedness has a stated maturity no earlier than the
stated maturity of the Consolidated Funded Indebtedness being Refinanced; (b)
the Refinancing Indebtedness has an average life to maturity at the time the
Refinancing Indebtedness is incurred that is equal to or greater than the
average life to maturity of the Consolidated Funded Indebtedness being
Refinanced; (c) the Refinancing Indebtedness has an aggregate principal amount
that is equal to or less than the aggregate principal amount then outstanding
(plus fees and expenses) under the Consolidated Funded Indebtedness being
Refinanced; and (d) the Refinancing Indebtedness is issued on terms no more
restrictive in any material respect than those contained in the Consolidated
Funded Indebtedness being Refinanced.

"Register"
has the meaning specified in Section 10.06(c). 

"Related
Parties" means, with respect to any Person, such Person's
Affiliates and the partners, directors, officers, employees, agents, trustees,
advisors and representatives of such Person and of such Person's Affiliates.

"Reportable
Event" means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day
notice period has been waived.

"Required
Lenders" means, as of any date of determination, Lenders
(including Voting Participants) having more than 50% of the Aggregate
Commitments or, if the commitment of each Lender to make Loans has been
terminated pursuant to Section 8.02, Lenders (including Voting Participants)
holding in the aggregate more than 50% of the Total Outstandings; provided 
that the Commitment of, and the portion of the Total Outstandings held or
deemed held by, any Defaulting Lender shall be excluded for purposes of making
a determination of Required Lenders.

 

CREDIT AGREEMENT – Page 20 

 

 

 

"Responsible
Officer" means the Chairman, President and Chief Executive
Officer, Executive Vice President - Finance, Chief Financial Officer and
Treasurer, Chief Accounting Officer, Vice President and Controller or Assistant
Secretary of the Borrower, or the Senior Vice President – Finance and
Treasurer, Vice President and Assistant Treasurer or Vice President and
Assistant Controller of the Parent Company and, solely for purposes of notices
given pursuant to Article II, any other officer or employee of the
Borrower so designated by any two of the foregoing officers in a notice to the
Administrative Agent or any other officer or employee of the Borrower
designated in or pursuant to an agreement between the Borrower and the
Administrative Agent.  Any document delivered hereunder that is signed by a
Responsible Officer of the Borrower shall be conclusively presumed to have been
authorized by all necessary corporate, partnership and/or other action on the
part of the Borrower and such Responsible Officer shall be conclusively
presumed to have acted on behalf of the Borrower.

"Restricted
Payment" means any dividend or other distribution (whether in
cash, securities or other property) with respect to any Equity Interest of 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, cancellation or termination
of any Equity Interest, or on account of any return of capital to the
Borrower's stockholders, partners or members (or the equivalent Person
thereof).

"Sale and
Leaseback Transaction" means any arrangement with any Person
providing for the leasing (as lessee) by the Borrower or any of its Subsidiaries
of any property (the primary purpose of the transaction of which such lease is
a part is not to provide funds to or financing for the Borrower or any
Subsidiary), which property has been or is to be sold or transferred by the
Borrower or any Subsidiary to a Subsidiary or any other Person in contemplation
of or in connection with such arrangement.

"S&P"
means Standard and Poor's Rating Services, a Standard & Poor's Financial
Services LLC business, and any successor thereto.

"S&P Rating"
means, at any time, the rating issued by S&P, and then in effect with
respect to the Borrower's senior unsecured long-term debt securities without
third-party credit enhancement.

"SEC"
means the Securities and Exchange Commission, or any Governmental Authority
succeeding to any of its principal functions.

"Special Entity"
means a Person (other than a Subsidiary) (a) listed on Schedule 1.01
and in existence on the Closing Date or (b) created after the Closing Date
and with respect to which (i) the Borrower or any Subsidiary has made an
equity Investment and directly or indirectly owns a minority interest, or any
Special Entity has made an Investment and directly or indirectly owns an
interest and (ii) the Borrower has delivered prior written notice to the
Administrative Agent of the creation of such Special Entity and its designation
as a Special Entity.

"Specified
Equity Interests" means Equity Interests owned by the Borrower or
any of its Subsidiaries in any Person or Persons that (a) are not directly, or
indirectly through one or more intermediaries, Controlled by the Borrower or by
any of its Subsidiaries and (b) are either 

 

CREDIT AGREEMENT – Page 21 

 

 

 

disclosed on Schedule 5.13, or acquired by the
Borrower after the Closing Date in connection with an acquisition expressly
permitted under Section 7.02 or a divestiture expressly permitted under Section
7.05. 

"Subordination
Agreement" means a Subordination Agreement, substantially in the
form of Exhibit F or any other form approved by the Administrative
Agent.

"Subsidiary"
of a Person means a corporation, partnership, joint venture, limited liability
company or other business entity of which a majority of the shares of
securities or other interests having ordinary voting power for the election of
directors or other governing body (other than securities or interests having
such power only by reason of the happening of a contingency) are at the time
beneficially owned, or the management of which is otherwise Controlled,
directly, or indirectly through one or more intermediaries, or both, by such
Person.  Unless otherwise specified, all references herein to a
"Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary
or Subsidiaries of the Borrower.  For the avoidance of doubt, no Variable
Interest Entity shall be considered a "Subsidiary" hereunder for any
purpose other than solely as contemplated by Section 1.03(c). 

"Swap Contract"
means (a) any and all rate swap transactions, basis swaps, credit derivative
transactions, forward rate transactions, commodity swaps, commodity options,
forward commodity contracts, equity or equity index swaps or options, bond or
bond price or bond index swaps or options or forward bond or forward bond price
or forward bond index transactions, interest rate options, forward foreign
exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all
transactions of any kind, and the related confirmations, which are subject to
the terms and conditions of, or governed by, any form of master agreement
published by the International Swaps and Derivatives Association, Inc., any International
Foreign Exchange Master Agreement, or any other master agreement (any such
master agreement, together with any related schedules, a "Master
Agreement"), including any such obligations or liabilities under
any Master Agreement.

"Swap
Termination Value" means, in respect of any one or more Swap
Contracts, after taking into account the effect of any legally enforceable
netting agreement relating to such Swap Contracts, (a) for any date on or after
the date such Swap Contracts have been closed out and termination value(s)
determined in accordance therewith, such termination value(s), and (b) for any
date prior to the date referenced in subsection (a), the amount(s) determined
as the mark-to-market value(s) for such Swap Contracts, as determined based
upon one or more mid-market or other readily available quotations provided by
any recognized dealer in such Swap Contracts (which may include a Lender or any
Affiliate of a Lender).

"Synthetic
Lease Obligation" means the monetary obligation of a Person in
connection with a transaction that is (a) treated and accounted for as a lease
in the financial statements of such Person but (b) treated and accounted for as
indebtedness in the tax statements of such 

 

CREDIT AGREEMENT – Page 22 

 

 

 

Person, but in any case which, upon the insolvency or
bankruptcy of such Person, would be characterized as the indebtedness of such
Person (without regard to accounting treatment).

"Taxes"
means all present or future taxes, levies, imposts, duties, deductions,
withholdings (including backup withholding), assessments, fees or other charges
imposed by any Governmental Authority, including any interest, additions to tax
or penalties applicable thereto.

"Threshold
Amount" means, on any date of determination and calculated as of
the last day of the fiscal quarter for which financial statements were most
recently delivered by the Borrower pursuant to Section 6.01(a) or 6.01(b),
as applicable, an amount equal to 7.5% of Consolidated EBITDA for the period of
four consecutive fiscal quarters most recently ended.

"Total Outstandings"
means the aggregate Outstanding Amount of all Loans.

"Type"
means, with respect to a Committed Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan.

"Unfunded
Pension Liability" means the excess of a Pension Plan's benefit liabilities under Section 4001(a)(16) of
ERISA, over the current value of that Pension Plan's
assets, determined in accordance with the assumptions used for funding the
Pension Plan pursuant to Section 412 of the Code for the applicable plan
year.

"United States"
and "U.S." mean the United States of America.

“USA Patriot Act” means the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56.

"Variable
Interest Entity" means any of (i) Advantage Spectrum L.P., and
Frequency Advantage L.P., its general partner, (ii) King Street Wireless,
L.P., and King Street Wireless, Inc., its general partner, (iii) Aquinas
Wireless, L.P. and (iv) any other entity that the Borrower is required to
consolidate pursuant to FASB ASC 810; provided  that once any such entity
shall no longer constitutes a “variable interest entity” pursuant to FASB ASC
810, such entity shall no longer constitute a “Variable Interest Entity”
hereunder.

“Voting Participant”
has the meaning specified in Section 10.06(d). 

“Voting Participant
Notice” has the meaning specified in Section 10.06(d). 

"wholly-owned"
means, with respect to a Subsidiary of a Person, a Subsidiary of such Person
all of the outstanding Equity Interests of which (other than (i) director's
qualifying shares and (ii) shares issued to foreign nationals to the extent
required by applicable law) are owned by such Person and/or by one or more
wholly-owned Subsidiaries of such Person.

1.02           
Other Interpretive Provisions.  With reference to this Agreement and each other
Loan Document, unless otherwise specified herein or in such other Loan
Document:

 

CREDIT AGREEMENT – Page 23 

 

 

 

(a)                
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, (i) any definition of or reference to
any agreement, instrument or other document (including any Organization
Document) 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 or in any other Loan Document), (ii) any reference herein to
any Person shall be construed to include such Person's successors and assigns,
(iii) the words "herein," "hereof"
and "hereunder," and words of similar import when used
in any Loan Document, shall be construed to refer to such Loan Document in its
entirety and not to any particular provision thereof, (iv) all references
in a Loan Document to Articles, Sections, Exhibits and Schedules shall be
construed to refer to Articles and Sections of, and Exhibits and Schedules to,
the Loan Document in which such references appear, (v) any reference to any law
shall include all statutory and regulatory provisions consolidating, amending,
replacing or interpreting such law and any reference to any law or regulation
shall, unless otherwise specified, refer to such law or regulation as amended,
modified or supplemented from time to time, and (vi) 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.

(b)                
In the computation of periods of
time from a specified date to a later specified date, the word "from"
means "from and including;" the words "to"
and "until" each mean "to but
excluding;" and the word "through" means
"to and including." 

(c)                
Section headings herein and in the
other Loan Documents are included for convenience of reference only and shall
not affect the interpretation of this Agreement or any other Loan Document.

1.03           
Accounting Terms.

(a)                
Generally.  All accounting terms not specifically or completely
defined herein shall be construed in conformity with, and all financial data
(including financial ratios and other financial calculations) required to be
submitted pursuant to this Agreement shall be prepared in conformity with, GAAP
as in effect from time to time, except  as otherwise specifically
prescribed herein.

(b)                
Changes in GAAP.  Unless the Borrower shall otherwise have provided
the notice set forth in the next sentence, if at any time any change in GAAP
would affect the computation of any financial ratio or requirement set forth in
any Loan Document (including, without limitation, the adoption of International
Financial Reporting Standards by U.S. companies), and either the Borrower or
the Required Lenders shall so request, the Administrative Agent, the Lenders
and the Borrower shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of

 

CREDIT AGREEMENT – Page 24 

 

 

 

such change in GAAP (subject to the approval of the Required Lenders); provided 
that, until so amended, (i) such ratio or requirement shall
continue to be computed in accordance with GAAP prior to such change therein
and (ii) the Borrower shall provide to the Administrative Agent and the
Lenders financial statements and other documents required under this Agreement
or as reasonably requested hereunder setting forth a reconciliation between calculations
of such ratio or requirement made before and after giving effect to such change
in GAAP.  Notwithstanding any other provision to the contrary herein, upon
notice from the Borrower to the Administrative Agent, all terms of an
accounting or financial nature herein shall be construed, and all computations
of amounts and ratios referred to herein shall be made, without giving effect
to any changes to, or modification of GAAP with respect to FASB ASC 840-20
which would require the capitalization of leases characterized as
"operating leases" as of the Closing Date (or would be so
characterized if such lease had been in effect on the Closing Date).

(c)                
Consolidation of Variable
Interest Entities.  All references
herein to consolidated financial statements of the Borrower and its
Subsidiaries or to the determination of any amount for the Borrower and its
Subsidiaries on a consolidated basis or any similar reference shall, in each
case, be deemed to include each Variable Interest Entity as if such Variable Interest
Entity were a Subsidiary as defined herein.

1.04           
Rounding.  Any financial ratios required to be maintained by
the Borrower pursuant to this Agreement (or required to be satisfied in order
for a specific action to be permitted under this Agreement) shall be calculated
by dividing the appropriate component by the other component, carrying the
result to one place more than the number of places by which such ratio is
expressed herein and rounding the result up or down to the nearest number (with
a rounding-up if there is no nearest number).

1.05           
Times of Day.  Unless otherwise specified, all references herein
to times of day shall be references to Mountain time (daylight or standard, as
applicable).

ARTICLE II.

THE COMMITMENTS 

2.01           
Committed Loans.  Subject to the terms and conditions set forth
herein, each Lender severally agrees to make loans (each such loan, a "Committed
Loan") to the Borrower from time to time, on any Business Day
during the Availability Period, in an aggregate principal amount not to exceed
at any time outstanding the amount of such Lender's Commitment; provided,
however, that after giving effect to any Committed Borrowing, (i) the
Total Outstandings shall not exceed the Aggregate Commitments, and (ii) the
aggregate Outstanding Amount of the Committed Loans of any Lender shall not
exceed such Lender's Commitment.  The Borrower may not prepay under Section
2.03 and reborrow under this Section 2.01.  Committed Loans may be
Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

2.02           
Borrowings, Conversions and
Continuations of Committed Loans.

(a)                
Each Committed Borrowing, each
conversion of Committed Loans from one Type to the other, and each continuation
of Eurodollar Rate Loans shall be made

 

CREDIT AGREEMENT – Page 25 

 

 

 

upon the Borrower's irrevocable notice to the Administrative Agent,
which may be given by (A) telephone, or (B) a Committed Loan Notice; provided 
that any telephone notice must be confirmed promptly by delivery to the
Administrative Agent of a Committed Loan Notice.  Each such Committed Loan
Notice must be received by the Administrative Agent not later than 11:00 a.m.
(i) three Business Days prior to the requested date of any Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or of any conversion of
Eurodollar Rate Loans to Base Rate Committed Loans, and (ii) One Business Day
prior to the requested date of any Borrowing of Base Rate Committed Loans or
conversion of any Eurodollar Rate Loans to Base Rate Committed Loans; provided,
however, that if the Borrower wishes to request Eurodollar Rate Loans
having an Interest Period other than one, two, three or six months in duration
as provided in the definition of "Interest Period," the applicable
notice must be received by the Administrative Agent not later than 11:00 a.m.
four Business Days prior to the requested date of such Borrowing, conversion or
continuation, whereupon the Administrative Agent shall give prompt notice to
the Lenders of such request and determine whether the requested Interest Period
is acceptable to all of them.  Not later than 11:00 a.m., three Business Days
before the requested date of such Borrowing, conversion or continuation, the
Administrative Agent shall notify the Borrower (which notice may be by
telephone) whether or not the requested Interest Period has been consented to
by all the Lenders.  Each Borrowing of, conversion to or continuation of
Eurodollar Rate Loans shall be in a principal amount of $5,000,000 or a whole
multiple of $1,000,000 in excess thereof.  Each Borrowing of or conversion to
Base Rate Committed Loans shall be in a principal amount of $500,000 or a whole
multiple of $100,000 in excess thereof.  Each Committed Loan Notice shall
specify (i) whether the Borrower is requesting a Committed Borrowing, a
conversion of Committed Loans from one Type to the other, or a continuation of
Eurodollar Rate Loans, (ii) the requested date of the Borrowing, conversion or continuation,
as the case may be (which shall be a Business Day), (iii) the principal
amount of Committed Loans to be borrowed, converted or continued, (iv) the Type
of Committed Loans to be borrowed or to which existing Committed Loans are to
be converted, and (v) if applicable, the duration of the Interest Period with
respect thereto.  If the Borrower fails to specify a Type of Committed Loan in
a Committed Loan Notice or if the Borrower fails to give a timely notice
requesting a conversion or continuation, then the applicable Committed Loans
shall be made as, or converted to, Base Rate Loans.  Any such automatic
conversion to Base Rate Loans shall be effective as of the last day of the
Interest Period then in effect with respect to the applicable Eurodollar Rate
Loans.  If the Borrower requests a Borrowing of, conversion to, or continuation
of Eurodollar Rate Loans in any such Committed Loan Notice, but fails to
specify an Interest Period, it will be deemed to have specified an Interest
Period of one month.

(b)                
Following receipt of a Committed
Loan Notice, the Administrative Agent shall promptly notify each Lender of the
amount of its Applicable Percentage of the applicable Committed Loans, and if
no timely notice of a conversion or continuation is provided by the Borrower,
the Administrative Agent shall notify each Lender of the details of any
automatic conversion to Base Rate Loans described in the preceding subsection. 
In the case of a Committed Borrowing, each Lender shall make the amount of its
Committed Loan available to the Administrative Agent in immediately available

 

CREDIT AGREEMENT – Page 26 

 

 

 

funds at the Administrative Agent's
Office not later than 1:00 p.m. on the Business Day specified in the applicable
Committed Loan Notice.  Upon satisfaction of the applicable conditions set
forth in Section 4.02 (and, if such Borrowing is the initial Committed
Loan, Section 4.01), the Administrative Agent shall make all funds so
received available to the Borrower in like funds as received by the
Administrative Agent by wire transfer of such funds in accordance with
instructions provided to (and reasonably acceptable to) the Administrative
Agent by the Borrower.

(c)                
Except as otherwise provided
herein, a Eurodollar Rate Loan may be continued or converted only on the last
day of an Interest Period for such Eurodollar Rate Loan.  During the existence
of a Default, no Loans may be requested as, converted to or continued as
Eurodollar Rate Loans without the consent of the Required Lenders.

(d)                
The Administrative Agent shall
promptly notify the Borrower and the Lenders of the interest rate applicable to
any Interest Period for Eurodollar Rate Loans selected hereunder upon the
determination of such interest rate.  At any time that Base Rate Loans are
outstanding, the Administrative Agent shall notify the Borrower and the Lenders
of any change in the Prime Rate used in determining the Base Rate promptly
following the public announcement of such change.  Failure to deliver any such
notice shall not affect the effectiveness of any such interest rate or result in
any liability to the Administrative Agent.

(e)                
After giving effect to all
Committed Borrowings, all conversions of Committed Loans from one Type to the
other, and all continuations of Committed Loans as the same Type, there shall
not be more than ten Interest Periods in effect with respect to Committed
Loans.

2.03           
Prepayments. 

(a)                
Voluntary.  The Borrower may, upon notice to the Administrative
Agent, at any time or from time to time voluntarily prepay Committed Loans in
whole or in part without premium or penalty; provided  that (i) such
notice must be received by the Administrative Agent not later than 11:00 a.m.
(A) three Business Days prior to any date of prepayment of Eurodollar Rate
Loans and (B) on the date of prepayment of Base Rate Committed Loans; (ii) any
prepayment of Eurodollar Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof; and
(iii) any prepayment of Base Rate Committed Loans shall be in a principal
amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in
each case, if less, the entire principal amount thereof then outstanding.  Each
such notice shall specify the date and amount of such prepayment and the
Type(s) of Committed Loans to be prepaid and, if Eurodollar Rate Loans are to
be prepaid, the Interest Period(s) of such Loans.  Notwithstanding anything to
the contrary contained in this Agreement, the Borrower may rescind or postpone
any notice of prepayment under this Section 2.03(a) if such prepayment
would have resulted from a refinancing of this Agreement, which refinancing
shall not be consummated or otherwise shall be delayed (subject to payment by
the Borrower of amounts owed under Section 3.05  occurring as a
result of such notice).

 

CREDIT AGREEMENT – Page 27 

 

 

 

(b)                
Mandatory.  The Outstanding Amounts shall be prepaid by an
amount and in accordance with the terms of Section 7.05(f) (together
with a reduction in the Aggregate Commitments).

(c)                
Applications of Prepayments.             So long as no Event of Default has
occurred and is then continuing, all prepayments permitted pursuant to this Section
2.03 shall be applied to the remaining unpaid installments of principal of
the Committed Loans as directed by the Borrower; provided  that,
if the Borrower fails to direct the application of any such prepayments, such
prepayments shall be applied to the unpaid installments of principal of the
Committed Loans in the inverse order of scheduled maturities.

(d)                
Generally.  The Administrative Agent will promptly notify each
Lender of its receipt of each such notice, and of the amount of such Lender's Applicable Percentage of such prepayment.  If
such notice is given by the Borrower, the Borrower shall make such prepayment
and the payment amount specified in such notice shall be due and payable on the
date specified therein.  Any prepayment of a Eurodollar Rate Loan shall be
accompanied by all accrued interest on the amount prepaid, together with any
additional amounts required pursuant to Section 3.05.  Each such
prepayment shall be applied to the Committed Loans of the Lenders in accordance
with their respective Applicable Percentages.

2.04           
Termination or Reduction of
Commitments.

(a)                
Voluntary.  The Borrower may, upon notice to the Administrative
Agent, terminate the Aggregate Commitments, or from time to time permanently
reduce the Aggregate Commitments, without premium or penalty (except those
amounts payable by the Borrower under Section 3.05  which shall be
paid by the Borrower); provided  that  (i) any such notice shall be
received by the Administrative Agent not later than 11:00 a.m. five Business
Days prior to the date of termination or reduction, and (ii) any such partial
reduction shall be in an aggregate amount of $10,000,000 or any whole multiple
of $1,000,000 in excess thereof.  Notwithstanding the foregoing, the Borrower
may rescind or postpone any notice of termination of the Commitments if such
termination would have resulted from a refinancing of this Agreement, which
refinancing shall not be consummated or otherwise shall be delayed (subject to
payment by the Borrower of amounts owed under Section 3.05 
occurring as a result of such notice).

(b)                
Mandatory.  The Aggregate Commitments shall be automatically
and permanently reduced by an amount and in accordance with the terms of Section
7.05(f). 

(c)                
Generally.  The Administrative Agent will promptly notify the
Lenders of any such notice of termination or reduction of the Aggregate
Commitments.  Any reduction of the Aggregate Commitments shall be applied to
the Commitment of each Lender according to its Applicable Percentage.  All fees
accrued until the effective date of any termination of the Aggregate
Commitments shall be paid on the effective date of such termination.

 

CREDIT AGREEMENT – Page 28 

 

 

 

2.05           
Repayment of Loans.  In addition to any prepayments made pursuant to Section
2.03 (any such prepayments pursuant to Section 2.03 to be applied to
any remaining unpaid principal installments of the Committed Loans set forth
below as specified in Section 2.03(c)), the Borrower shall repay the
aggregate outstanding principal balance of the Committed Loans in quarterly
principal payments on the dates and in the amounts set forth in the following
table:

	
   Quarterly Payment Dates

   	
   Quarterly Repayments

   
	
  March 31, 2016

  	
  $2,812,500

  
	
  June 30, 2016

  	
  $2,812,500

  
	
  September 30, 2016

  	
  $2,812,500

  
	
  December 31, 2016

  	
  $2,812,500

  
	
  March 31, 2017

  	
  $2,812,500

  
	
  June 30, 2017

  	
  $2,812,500

  
	
  September 30, 2017

  	
  $2,812,500

  
	
  December 31, 2017

  	
  $2,812,500

  
	
  March 31, 2018

  	
  $2,812,500

  
	
  June 30, 2018

  	
  $2,812,500

  
	
  September 30, 2018

  	
  $2,812,500

  
	
  December 31, 2018

  	
  $2,812,500

  
	
  March 31, 2019

  	
  $2,812,500

  
	
  June 30, 2019

  	
  $2,812,500

  
	
  September 30, 2019

  	
  $2,812,500

  
	
  December 31, 2019

  	
  $2,812,500

  
	
  March 31, 2020

  	
  $2,812,500

  
	
  June 30, 2020

  	
  $2,812,500

  
	
  September 30, 2020

  	
  $2,812,500

  
	
  December 31, 2020

  	
  $2,812,500

  

 

CREDIT AGREEMENT – Page 29 

 

 

 

	
  Quarterly Payment Dates

  	
  Quarterly Repayments

  
	
  March 31, 2021

  	
  $2,812,500

  
	
  June 30, 2021

  	
  $2,812,500

  
	
  September 30, 2021

  	
  $2,812,500

  
	
  December 31, 2021

  	
  $2,812,500

  

Notwithstanding
anything herein to the contrary, the entire outstanding principal balance of
the Committed Loans shall be due and payable in full in cash on the Maturity Date.

2.06           
Interest. 

(a)                
Subject to the provisions of
subsection (b) below, (i) each Eurodollar Rate Loan shall bear interest on the
outstanding principal amount thereof for each Interest Period at a rate per
annum equal to the Eurodollar Rate for such Interest Period plus  the
Applicable Rate; and (ii) each Base Rate Committed Loan shall bear interest on
the outstanding principal amount thereof from the applicable borrowing date at
a rate per annum equal to the Base Rate plus  the Applicable Rate.

(b)                
If any amount of principal of any
Loan is not paid when due (without regard to any applicable grace periods),
whether at stated maturity, by acceleration or otherwise, such amount shall
thereafter bear interest at a fluctuating interest rate per annum at all times
equal to the Default Rate to the fullest extent permitted by applicable Laws.

                                                                              
(i)           
If any amount (other than
principal of any Loan) payable by the Borrower under any Loan Document is not
paid when due (after giving effect to any applicable grace periods), whether at
stated maturity, by acceleration or otherwise, then upon the request of the
Required Lenders, such amount shall thereafter bear interest at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws.

                                                                            
(ii)           
Upon the request of the Required
Lenders, while any Event of Default exists, the Borrower shall pay interest on
the principal amount of all outstanding Obligations hereunder at a fluctuating
interest rate per annum at all times equal to the Default Rate to the fullest
extent permitted by applicable Laws; provided that the Borrower shall not be
required to pay the Default Rate to any Lender while such Lender is a
Defaulting Lender at the time when an Event of Default exists.

                                                                           
(iii)           
Accrued and unpaid interest on
past due amounts (including interest on past due interest to the extent
permitted by applicable Laws) shall be due and payable upon demand.

 

CREDIT AGREEMENT – Page 30 

 

 

 

(c)                
Interest on each Loan shall be due
and payable in arrears on each Interest Payment Date applicable thereto and at
such other times as may be specified herein.  Interest hereunder shall be due
and payable in accordance with the terms hereof before and after judgment, and
before and after the commencement of any proceeding under any Debtor Relief
Law.

2.07           
Fees. 

(a)                
Commitment Fee.  The Borrower shall pay to the Administrative Agent
for the account of each Lender in accordance with its Applicable Percentage, a
commitment fee equal to the Applicable Rate times  the actual daily
amount by which the Aggregate Commitments exceed the Outstanding Amount of
Committed Loans, provided  that, any commitment fee accrued with respect
to the Commitment of a Defaulting Lender during the period prior to the time
such Lender became a Defaulting Lender and unpaid at such time shall not be
payable by the Borrower so long as such Lender shall be a Defaulting Lender
except to the extent that such commitment fee shall otherwise have been due and
payable by the Borrower prior to such time; and provided  further 
that no commitment fee shall accrue on the Commitment of a Defaulting Lender so
long as such Lender shall be a Defaulting Lender.  The commitment fee shall
accrue at all times during the Availability Period, including at any time
during which one or more of the conditions in Article IV is not met, and
shall be due and payable quarterly in arrears on the last Business Day of
March, 2015 and June, 2015, and on the last day of the Availability Period. 
The commitment fee shall be calculated quarterly in arrears, and if there is
any change in the Applicable Rate during any quarter, the actual daily amount
shall be computed and multiplied by the Applicable Rate separately for each
period during such quarter that such Applicable Rate was in effect.

(b)                
Other Fees.  The Borrower shall pay the fees in the amounts and
at the times specified in the Fee Letter.  Such fees shall be fully earned when
paid and shall not be refundable for any reason whatsoever.

2.08           
Computation of Interest and
Fees.  All computations of interest
for Base Rate Loans when the Base Rate is determined by the Prime Rate shall be
made on the basis of a year of 365 or 366 days, as the case may be, and actual
days elapsed.  All other computations of fees and interest shall be made on the
basis of a 360-day year and actual days elapsed (which results in more fees or
interest, as applicable, being paid than if computed on the basis of a 365-day
year).  Interest shall accrue on each Loan for the day on which the Loan is
made, and shall not accrue on a Loan, or any portion thereof, for the day on
which the Loan or such portion is paid, provided that any Loan that is repaid
on the same day on which it is made shall, subject to Section 2.10(a),
bear interest for one day.  Each determination by the Administrative Agent of
an interest rate or fee hereunder shall be conclusive and binding for all
purposes, absent manifest error.

2.09           
Evidence of Debt. 

(a)                
The Loans made by each Lender
shall be evidenced by one or more accounts or records maintained by such Lender
and evidenced by one or more entries in

 

CREDIT AGREEMENT – Page 31 

 

 

 

the Register maintained by the Administrative Agent, in each case in
the ordinary course of business, and provided  that, with respect
to Treasury Regulation Section 5f.103-1(c) only (if applicable), the
Administrative Agent shall act as agent for the Borrower with respect to the
requirements of such Regulation.  The accounts or records maintained by the
Administrative Agent and each Lender shall be prima facie evidence of the
amount of the Loans made by the Lenders to the Borrower and the interest and
payments thereon.  Any failure to so record or any error in doing so shall not,
however, limit or otherwise affect the obligation of the Borrower hereunder to
pay any amount owing with respect to the Obligations.  In the event of any
conflict between the accounts and records maintained by any Lender and the
accounts and records of the Administrative Agent in respect of such matters,
the accounts and records of the Administrative Agent shall control in the
absence of manifest error.  Upon the request of any Lender made through the
Administrative Agent, the Borrower shall execute and deliver to such Lender
(through the Administrative Agent) a Note payable to such Lender, which shall
evidence such Lender's Loans in addition to such accounts or records.  Each
Lender may attach schedules to its Note and endorse thereon the date, Type (if
applicable), amount and maturity of its Loans and payments with respect
thereto.

(b)                
Entries made in good faith by the
Administrative Agent in the Register pursuant to Section 2.09(a), and by
each Lender in its account or accounts pursuant to Section 2.09(a),
shall be prima facie evidence of the amount of principal and interest due and
payable or to become due and payable from the Borrower to, in the case of the
Register, each Lender and, in the case of such account or accounts, such
Lender, under this Agreement and the other Loan Documents; provided  that 
the failure of the Administrative Agent or such Lender to make an entry, or any
finding that an entry is incorrect, in the Register or such account or accounts
shall not limit or otherwise affect the obligations of the Borrower under this
Agreement and the other Loan Documents.

2.10           
Payments Generally;
Administrative Agent's Clawback. 

(a)                
General.  All payments to be made by the Borrower shall be
made free and clear of and without condition or deduction for any counterclaim,
defense, recoupment or setoff.  Except as otherwise expressly provided herein,
all payments by the Borrower hereunder shall be made to the Administrative
Agent, for the account of the respective Lenders to which such payment is owed,
at the Administrative Agent's Office in
Dollars and in immediately available funds not later than 2:00 p.m. on the date
specified herein.  The Administrative Agent will promptly distribute to each
Lender its Applicable Percentage (or other applicable share as provided herein)
of such payment in like funds as received by wire transfer to such Lender's
Lending Office.  All payments received by the Administrative Agent after 2:00
p.m. shall be deemed received on the next succeeding Business Day and any
applicable interest or fee shall continue to accrue.  If any payment to be made
by the Borrower shall come due on a day other than a Business Day, payment
shall be made on the next following Business Day, and such extension of time
shall be reflected in computing interest or fees, as the case may be.

(b)                
(i)            Funding by Lenders; Presumption by Administrative Agent. 
Unless the Administrative Agent shall have received notice from a Lender prior
to

 

CREDIT AGREEMENT – Page 32 

 

 

 

the proposed date of any Committed Borrowing of
Eurodollar Rate Loans (or, in the case of any Committed Borrowing of Base Rate
Loans, prior to 12:00 noon on the date of such Committed Borrowing) that such
Lender will not make available to the Administrative Agent such Lender's share
of such Committed Borrowing, the Administrative Agent may assume that such
Lender has made such share available on such date in accordance with Section
2.02 (or, in the case of a Committed Borrowing of Base Rate Loans, that
such Lender has made such share available in accordance with and at the time
required by Section 2.02) 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 Committed 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 in immediately available funds 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
(A) in the case of a payment to be made by such Lender, the greater of the
Federal Funds Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation, plus any
administrative, processing or similar fees customarily charged by the
Administrative Agent in connection with the foregoing, and (B) in the case of a
payment to be made by the Borrower, the interest rate applicable to Base Rate
Loans.  If the Borrower and such Lender shall pay such interest to the
Administrative Agent for the same or an overlapping period, the Administrative
Agent shall promptly remit to the Borrower the amount of such interest paid by
the Borrower for such period.  If such Lender pays its share of the applicable
Committed Borrowing to the Administrative Agent, then the amount so paid shall
constitute such Lender's Committed Loan included in such Committed Borrowing. 
Any payment by the Borrower shall be without prejudice to any claim the
Borrower may have against a Lender that shall have failed to make such payment
to the Administrative Agent.

                                                                            
(ii)           
Payments by Borrower;
Presumptions by Administrative Agent. 
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 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 the amount due.  In such event, if the
Borrower has not in fact made such payment, then each of the Lenders severally
agrees to repay to the Administrative Agent forthwith on demand the amount so
distributed to such Lender, in immediately available funds 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 Rate and a rate determined by the Administrative
Agent in accordance with banking industry rules on interbank compensation.

CREDIT AGREEMENT – Page 33 

 

 

 

A
notice of the Administrative Agent to any Lender or the Borrower with respect
to any amount owing under this subsection (b) shall be conclusive, absent
manifest error.

(c)                
Failure to Satisfy Conditions
Precedent.  If any Lender makes
available to the Administrative Agent funds for any Loan to be made by such
Lender as provided in the foregoing provisions of this Article II, and
such funds are not made available to the Borrower by the Administrative Agent
because the conditions to the applicable Committed Loan set forth in Article
IV are not satisfied or waived in accordance with the terms hereof, the
Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

(d)                
Obligations of Lenders Several.  The obligations of the Lenders hereunder to make
Committed Loans and to make payments pursuant to Section 10.04(c) are
several and not joint.  The failure of any Lender to make any Committed Loan or
to make any payment under Section 10.04(c) on any date required
hereunder shall not relieve any other Lender of its corresponding obligation to
do so on such date, and no Lender shall be responsible for the failure of any
other Lender to so make its Committed Loan or to make its payment under Section
10.04(c). 

(e)                
Funding Source.  Nothing herein shall be deemed to obligate any
Lender to obtain the funds for any Loan in any particular place or manner or to
constitute a representation by any Lender that it has obtained or will obtain
the funds for any Loan in any particular place or manner.

2.11           
Sharing of Payments by Lenders.  If any Lender shall, by exercising any right of
setoff, counterclaim, payment, fee or otherwise, obtain payment in respect of
any principal of or interest on any of the Committed Loans made by it resulting
in such Lender's receiving payment of a proportion of the aggregate amount of
such Committed Loans and accrued interest thereon greater than its pro  rata 
share thereof as provided herein, then the Lender receiving such greater
proportion shall (a) notify the Administrative Agent of such fact, and (b)
purchase (for cash at face value) participations in the Committed Loans and of
the other Lenders, or make such other adjustments as shall be equitable, so
that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on
their respective Committed Loans and other amounts owing them, 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 Section
2.11 shall not be construed to apply to (x) any payment made by the
Borrower pursuant to and in accordance with the express terms of this Agreement
(including, without limitation, Sections 3.01, 3.02, 3.04,
3.05  or 10.04), or (y) any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Committed Loans to any assignee or participant, other than to the Borrower or

 

CREDIT AGREEMENT – Page 34 

 

 

 

any Subsidiary thereof (as to which the provisions of this Section
2.11 shall apply).

The Borrower consents
to the foregoing and agrees, to the extent it may effectively do so under
applicable Laws, 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.

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

3.01           
Taxes. 

(a)                
Payments Free of Taxes;
Obligation to Withhold; Payments on Account of Taxes. 

                                                                              
(i)           
Any and all payments by or on
account of any obligation of the Borrower hereunder or under any other Loan
Document shall to the extent permitted by applicable Laws be made free and
clear of and without deduction or withholding for any Taxes.  If, however,
applicable Laws require the Borrower or the Administrative Agent to withhold or
deduct any Tax, such Tax shall be withheld or deducted in accordance with such
Laws as determined by the Borrower or the Administrative Agent, as the case may
be, upon the basis of the information and documentation to be delivered
pursuant to subsection (e) below.

                                                                            
(ii)           
If the Borrower or the
Administrative Agent shall be required by the Code to withhold or deduct any
Taxes, including both United States Federal backup withholding and withholding
taxes, from any payment, then (A) the Administrative Agent shall withhold
or make such deductions as are determined by the Administrative Agent to be
required based upon the information and documentation it has received pursuant
to subsection (e) below, (B) the Administrative Agent shall timely pay the
full amount withheld or deducted to the relevant Governmental Authority in
accordance with the Code, and (C) to the extent that the withholding or
deduction is made on account of Indemnified Taxes or Other Taxes, the sum
payable by the Borrower shall be increased as necessary so that after any
required withholding or the making of all required deductions (including
deductions applicable to additional sums payable under this Section) the
applicable Recipient receives an amount equal to the sum it would have received
had no such withholding or deduction been made.

                                                                           
(iii)           
If the Borrower or the
Administrative Agent shall be required by any applicable Laws other than the
Code to withhold or deduct any Taxes from any payment, then (A) the
Borrower or the Administrative Agent, as required by such Laws, shall withhold
or make such deductions as are determined by it to be required based upon the
information and documentation it has received pursuant to subsection (e)
below, (B) the Borrower or the Administrative Agent, to the

 

CREDIT AGREEMENT – Page 35 

 

 

 

extent required by such Laws, shall timely pay the full amount withheld
or deducted to the relevant Governmental Authority in accordance with such
Laws, and (C) to the extent that the withholding or deduction is made on
account of Indemnified Taxes, the sum payable by the Borrower shall be
increased as necessary so that after any required withholding or the making of
all required deductions (including deductions applicable to additional sums
payable under this Section) the applicable Recipient receives an amount equal
to the sum it would have received had no such withholding or deduction been
made.

(b)                
Payment of Other Taxes by the
Borrower.  Without limiting the
provisions of subsection (a) above, the Borrower shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable
Laws, or at the option of the Administrative Agent timely reimburse it for the
payment of any Other Taxes.

(c)                
Tax Indemnifications.  (i)  Without limiting or duplicating the provisions of
subsection (a) or (b) above, the Borrower shall, and does hereby, indemnify
each Recipient, and shall make payment in respect thereof within 10 days after
demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
(including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) withheld or deducted by the
Borrower or the Administrative Agent or paid by such Recipient in connection
with a Loan Document and any penalties, interest and reasonable expenses
arising therefrom or with respect thereto, whether or not such Indemnified
Taxes or Other Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority.  The Borrower shall also, and does hereby,
indemnify the Administrative Agent, and shall make payment in respect thereof
within 10 days after demand therefor, for any amount which a Lender for any
reason fails to pay indefeasibly to the Administrative Agent as required by
subsection (ii) of this subsection.  A certificate as to the amount of any
such payment or liability delivered to the Borrower by a Lender (with a copy to
the Administrative Agent), or by the Administrative Agent on its own behalf or
on behalf of a Lender, shall be prima facie evidence thereof, and shall include
a certification that such claim is being made in compliance with Section 3.06(c). 

                                                                            
(ii)           
Without limiting the provisions of
subsection (a) or (b) above, each Lender shall, and does hereby, severally
indemnify, and shall make payment in respect thereof within 10 days after
demand therefor, (x) the Administrative Agent against any Indemnified Taxes attributable
to such Lender (but only to the extent that the Borrower has not already
indemnified the Administrative Agent for such Indemnified Taxes and without
limiting the obligation of the Borrower to do so), (y) the Administrative Agent
and the Borrower, as applicable, against any Taxes attributable to such
Lender's failure to comply with the provisions of Section 10.06(d)
relating to the maintenance of a Participant Register and (z) the
Administrative Agent and the Borrower, as applicable, against any Excluded
Taxes attributable to such Lender, in each case, that are payable or paid by
the Administrative Agent or the Borrower in connection with any Loan Document,
and any reasonable expenses arising therefrom or with respect thereto, whether
or

 

CREDIT AGREEMENT – Page 36 

 

 

 

not such Taxes were correctly or legally imposed or asserted by the
relevant Governmental Authority.  A certificate as to the amount of such
payment or liability delivered to any Lender by the Administrative Agent shall
be prima facie evidence thereof.  Each Lender hereby authorizes the
Administrative Agent to set off and apply any and all amounts at any time owing
to such Lender under this Agreement or any other Loan Document against any
amount due to the Administrative Agent under this paragraph (ii).  The agreements
in this paragraph (ii) shall survive the resignation and/or replacement of the
Administrative Agent, any assignment of rights by, or the replacement of, a
Lender, the termination of the Aggregate Commitments and the repayment,
satisfaction or discharge of all other Obligations.

(d)                
Evidence of Payments.  Upon request by the Borrower or the Administrative
Agent, as the case may be, after any payment of Taxes by the Borrower or by the
Administrative Agent to a Governmental Authority as provided in this Section 3.01,
the Borrower shall deliver to the Administrative Agent or the Administrative
Agent shall deliver to the Borrower, as the case may be, the original or a
certified copy of a receipt issued by such Governmental Authority evidencing
such payment, a copy of any return required by Laws to report such payment or
other evidence of such payment reasonably satisfactory to the Borrower or the
Administrative Agent, as the case may be.

(e)                
Status of Lenders; Tax
Documentation. 

                                                                              
(i)           
Any Lender that is entitled to an
exemption from or reduction of withholding Tax with respect to payments made
under any Loan Document shall deliver to the Borrower and the Administrative
Agent, at the time or times reasonably requested by the Borrower or the
Administrative Agent, such properly completed and executed documentation
reasonably requested by the Borrower or the Administrative Agent as will permit
such payments to be made without withholding or at a reduced rate of
withholding.  In addition, any Lender, if reasonably requested by the Borrower
or the Administrative Agent, shall deliver such other documentation prescribed
by applicable law or reasonably requested by the Borrower or the Administrative
Agent as will enable the Borrower or the Administrative Agent to determine
whether or not such Lender is subject to backup withholding or information
reporting requirements.  Notwithstanding anything to the contrary in the
preceding two sentences, the completion, execution and submission of such documentation
(other than such documentation set forth in Section 3.01(e)(ii)(A), (ii)(B) 
and (ii)(D)  below) shall not be required if in the Lender's reasonable
judgment such completion, execution or submission would subject such Lender to
any material unreimbursed cost or expense or would materially prejudice the
legal or commercial position of such Lender.

                                                                            
(ii)           
Without limiting the generality of
the foregoing, in the event that the Borrower is a U.S. Person,

 

CREDIT AGREEMENT – Page 37 

 

 

 

(A)               
any Lender that is a U.S. Person
shall deliver to the Borrower and the Administrative Agent on or prior to the
date on which such Lender becomes a Lender under this Agreement (and from time
to time thereafter upon the reasonable request of the Borrower or the
Administrative Agent), executed originals of IRS Form W-9 certifying that such
Lender is exempt from U.S. federal backup withholding tax; 

(B)               
any Foreign Lender shall, to the
extent it is legally entitled to do so, deliver to the Borrower and the
Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a
Lender under this Agreement (and from time to time thereafter upon the
reasonable request of the Borrower or the Administrative Agent), whichever of
the following is applicable:

(I)                 
in the case of a Foreign Lender
claiming the benefits of an income tax treaty to which the United States is a
party (x) with respect to payments of interest under any Loan Document,
executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E establishing an
exemption from, or reduction of, U.S. federal withholding Tax pursuant to the
"interest" article of such tax treaty and (y) with respect to any
other applicable payments under any Loan Document, IRS Form W-8BEN or IRS Form
W-8BEN-E establishing an exemption from, or reduction of, U.S. federal
withholding Tax pursuant to the "business profits" or "other
income" article of such tax treaty;

(II)              
executed originals of IRS Form
W-8ECI;

(III)            
in the case of a Foreign Lender
claiming the benefits of the exemption for portfolio interest under Section
881(c) of the Code, (x) a certificate substantially in the form of Exhibit
I-1 to the effect that such Foreign Lender is not a "bank" within
the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder"
of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a
"controlled foreign corporation" described in Section 881(c)(3)(C) of
the Code (a "U.S. Tax Compliance Certificate") and (y)
executed originals of IRS Form W-8BEN or IRS Form W-8BEN-E; or

(IV)            
to the extent a Foreign Lender is
not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by
IRS Form W-8ECI, IRS Form W-8BEN, IRS Form W-8BEN-E, a U.S. Tax Compliance
Certificate substantially in the form of Exhibit I-2 or Exhibit I-3,
IRS Form W-9, and/or other certification documents from each beneficial owner,
as applicable; provided  that if the Foreign Lender is a partnership and
one or more direct

 

CREDIT AGREEMENT – Page 38 

 

 

 

or indirect partners of such Foreign Lender are claiming the portfolio
interest exemption, such Foreign Lender may provide a U.S. Tax Compliance
Certificate substantially in the form of Exhibit I-4 on behalf of each
such direct and indirect partner;

(C)          any
Foreign Lender shall, to the extent it is legally entitled to do so, deliver to
the Borrower and the Administrative Agent (in such number of copies as shall be
requested by the recipient) on or prior to the date on which such Foreign
Lender becomes a Lender under this Agreement (and from time to time thereafter
upon the reasonable request of the Borrower or the Administrative Agent),
executed originals of any other form prescribed by applicable law as a basis
for claiming exemption from or a reduction in U.S. federal withholding Tax,
duly completed, together with such supplementary documentation as may be
prescribed by applicable law to permit the Borrower or the Administrative Agent
to determine the withholding or deduction required to be made; and

(D)          if
a payment made to a Lender under any Loan Document would be subject to U.S.
federal withholding Tax imposed by FATCA if such Lender were to fail to comply
with the applicable reporting requirements of FATCA (including those contained
in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall
deliver to the Borrower and the Administrative Agent at the time or times
prescribed by law and at such time or times reasonably requested by the
Borrower or the Administrative Agent such documentation prescribed by
applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the
Code) and such additional documentation reasonably requested by the Borrower or
the Administrative Agent as may be necessary for the Borrower and the
Administrative Agent to comply with their obligations under FATCA and to
determine that such Lender has complied with such Lender's obligations under
FATCA or to determine the amount to deduct and withhold from such payment. 
Solely for purposes of this clause (D), "FATCA" shall
include any amendments made to FATCA after the date of this Agreement.

                                                                           
(iii)           
Each Lender agrees that if any
form or certification it previously delivered pursuant to this Section 3.01
expires or becomes obsolete or inaccurate in any respect, it shall update such
form or certification or promptly notify the Borrower and the Administrative
Agent in writing of its legal inability to do so.

(f)                 
Treatment of Certain Refunds.  Unless required by applicable Laws, at no time
shall the Administrative Agent have any obligation to file for or otherwise
pursue on behalf of a Lender, or have any obligation to pay to any Lender, any
refund of, or a tax credit with respect to, any Taxes withheld or deducted from
funds paid for the account of such Lender.  If any Recipient determines, in its
sole discretion, that it has received a refund of, or tax credit with respect
to, 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 3.01, it shall pay to the Borrower an
amount equal to such refund or credit (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrower under this Section
3.01 with respect to the Taxes or Other

 

CREDIT AGREEMENT – Page 39 

 

 

 

Taxes giving rise to such refund or credit), net of all reasonable
out-of-pocket expenses (including Taxes and Other Taxes) incurred by such
Recipient, 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 Recipient, 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 Recipient in the event the
Recipient is required to repay such refund or credit to such Governmental
Authority.  Notwithstanding anything to the contrary in this subsection, in no
event will the applicable Recipient be required to pay any amount to the
Borrower pursuant to this subsection the payment of which would place the
Recipient in a less favorable net after-Tax position than such Recipient would
have been in if the Tax subject to indemnification and giving rise to such
refund had not been deducted, withheld or otherwise imposed and the
indemnification payments or additional amounts with respect to such Tax had
never been paid.  This subsection shall not be construed to require any
Recipient 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.

(g)                
Survival.  Each party's obligations under this Section 3.01
shall survive the resignation or replacement of the Administrative Agent or any
assignment of rights by, or the replacement of, a Lender, the termination of
the Commitments and the repayment, satisfaction or discharge of all other
Obligations.

3.02           
Illegality.  If any Lender determines that any Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful,
for any Lender or its applicable Lending Office to make, maintain or fund
Eurodollar Rate Loans, or to determine or charge interest rates based upon the
Eurodollar Rate, or any Governmental Authority has imposed material
restrictions on the authority of such Lender to purchase or sell, or to take
deposits of, Dollars in the London interbank market, then, on notice thereof by
such Lender to the Borrower through the Administrative Agent, any obligation of
such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate
Committed Loans to Eurodollar Rate Loans shall be suspended until such Lender
notifies the Administrative Agent and the Borrower that the circumstances giving
rise to such determination no longer exist.  Upon receipt of such notice, the
Borrower shall, upon demand from such Lender (with a copy to the Administrative
Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such
Lender to Base Rate Loans, either on the last day of the Interest Period
therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate
Loans to such day, or immediately, if such Lender may not lawfully continue to
maintain such Eurodollar Rate Loans.  Upon any such prepayment or conversion,
the Borrower shall also pay accrued interest on the amount so prepaid or
converted.

3.03           
Inability to Determine Rates.  If the Required Lenders determine that for any
reason in connection with any request for a Eurodollar Rate Loan or a
conversion to or continuation thereof that (a) Dollar deposits are not
being offered to banks in the London interbank eurodollar market for the
applicable amount and Interest Period of such Eurodollar Rate Loan,
(b) adequate and reasonable means do not exist for determining the
Eurodollar Rate for any requested Interest Period with respect to a proposed
Eurodollar Rate Loan, or (c) the Eurodollar Rate for any requested
Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately
and fairly reflect the cost to such Lenders of funding such Loan, the

 

CREDIT AGREEMENT – Page 40 

 

 

 

Administrative Agent will promptly so notify the Borrower and each
Lender.  Thereafter, the obligation of the Lenders to make or maintain
Eurodollar Rate Loans shall be suspended until the Administrative Agent (upon
the instruction of the Required Lenders) revokes such notice.  Upon receipt of
such notice, the Borrower may revoke any pending request for a Borrowing of,
conversion to or continuation of Eurodollar Rate Loans or, failing that, will
be deemed to have converted such request into a request for a Committed
Borrowing of Base Rate Loans in the amount specified therein.

3.04           
Increased Costs. 

(a)                
Increased Costs Generally.  If any Change in Law shall:

                                                                              
(i)           
impose, modify or deem applicable
any reserve, special deposit, compulsory loan, insurance charge or similar
requirement against assets of, deposits with or for the account of, or credit
extended or participated in by, any Lender (except any reserve requirement
contemplated by Section 3.04(e)); 

                                                                            
(ii)           
subject any Recipient to any Taxes
(other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through
(d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its
loans, loan principal, letters of credit, commitments, or other obligations, or
its deposits, reserves, other liabilities or capital attributable thereto; or

                                                                           
(iii)           
impose on any Lender or the London
interbank market any other condition, cost or expense affecting this Agreement
or Eurodollar Rate Loans made by such Lender;

and the result of any of
the foregoing shall be to increase the cost to such Lender of making,
converting to, continuing or maintaining any Eurodollar Rate Loan (or of
maintaining its obligation to make any such Loan), or to reduce the amount of
any sum received or receivable by such Lender hereunder (whether of principal,
interest or any other amount) then, within fifteen days after demand by such
Lender setting forth in reasonable detail such increased costs (but shall not
require any Lender to disclose any confidential or proprietary information, and
with a copy of such demand to the Administrative Agent given in accordance with
Section 3.06), the Borrower will pay to such Lender such additional
amount or amounts as will compensate such Lender for such additional costs
incurred or reduction suffered.

(b)                
Capital Requirements.  If any Change in Law affecting any Lender or any
Lending Office of such Lender or such Lender's holding company, if any,
regarding capital or liquidity requirements has or would have the effect of
reducing the rate of return on such Lender's capital or on the capital of such
Lender's holding company, if any, as a consequence of this Agreement, the
Commitments of such Lender or the Loans made by such Lender, to a level below
that which such Lender or such Lender's holding company could have achieved but
for such Change in Law (taking into consideration such Lender's policies and
the policies of such Lender's holding company with respect to capital adequacy),
then from time to time upon demand of such Lender setting forth in

 

CREDIT AGREEMENT – Page 41 

 

 

 

reasonable detail the charge and calculation of such reduced rate of
return (but shall not require any Lender to disclose any confidential or
proprietary information, and with a copy of such demand to the Administrative
Agent given in accordance with Section 3.06), the Borrower will pay
to such Lender such additional amount or amounts as will compensate such Lender
or such Lender's holding company for any such reduction suffered within fifteen
days after receipt of such demand.

(c)                
Certificates for Reimbursement.  A certificate of a Lender setting forth in
reasonable detail the calculation of the amount or amounts necessary to
compensate such Lender or its holding company, as the case may be, as specified
in subsection (a) or (b) of this Section 3.04 and delivered to the
Borrower shall be prima facie evidence thereof, and such certificate shall
include a certification that such claim is being made in compliance with Section 3.06(c). 
The Borrower shall pay such Lender the amount shown as due on any such
certificate within fifteen days after receipt thereof.

(d)                
Delay in Requests.  Failure or delay on the part of any Lender to
demand compensation pursuant to the foregoing provisions of this Section
3.04 shall not constitute a waiver of such Lender's right to demand such
compensation, provided  that the Borrower shall not be required to
compensate a Lender pursuant to the foregoing provisions of this Section
3.04 for any increased costs incurred or reductions suffered more than nine
months prior to the date that such Lender notifies the Borrower of the Change
in Law giving rise to such increased costs or reductions and of such Lender's
intention to claim compensation therefor (except that, if the Change in Law
giving rise to such increased costs or reductions is retroactive, then the
nine-month period referred to above shall be extended to include the period of
retroactive effect thereof).

(e)                
Reserves on Eurodollar Rate
Loans.  The Borrower shall pay to
each Lender, as long as such Lender shall be required to maintain reserves with
respect to liabilities or assets consisting of or including Eurocurrency funds
or deposits (currently known as "Eurocurrency liabilities"),
additional interest on the unpaid principal amount of each Eurodollar Rate Loan
equal to the actual costs of such reserves allocated to such Loan by such
Lender (as determined by such Lender in good faith, which determination shall
be conclusive), which shall be due and payable on each date on which interest
is payable on such Loan, provided  the Borrower shall have received at
least fifteen days' prior notice (with a copy to the Administrative Agent) of
such additional interest from such Lender.  If a Lender fails to give notice
fifteen days prior to the relevant Interest Payment Date, such additional
interest shall be due and payable fifteen days from receipt of such notice.

3.05           
Compensation for Losses.  Upon written demand of any Lender (with a copy to
the Administrative Agent) from time to time, which demand shall set forth in
reasonable detail the basis for requesting such amount (but shall not require
any Lender to disclose any confidential or proprietary information), the
Borrower shall promptly compensate such Lender for and hold such Lender
harmless from any loss, cost or expense incurred by it as a result of:

 

CREDIT AGREEMENT – Page 42 

 

 

 

(a)                
any continuation, conversion,
payment or prepayment of any Loan other than a Base Rate Loan on a day other
than the last day of the Interest Period for such Loan (whether voluntary,
mandatory, automatic, by reason of acceleration, or otherwise);

(b)                
any failure by the Borrower (for a
reason other than the failure of such Lender to make a Loan) to prepay, borrow,
continue or convert any Loan other than a Base Rate Loan on the date or in the
amount notified by the Borrower; or

(c)                
any assignment of a Eurodollar
Rate Loan on a day other than the last day of the Interest Period therefor as a
result of a request by the Borrower pursuant to Section 10.13; 

including any loss
(other than loss of anticipated profits) or expense arising from the
liquidation or reemployment of funds obtained by it to maintain such Loan or
from fees payable to terminate the deposits from which such funds were
obtained.  The Borrower shall also pay any reasonable and customary
administrative fees charged by such Lender in connection with the foregoing.

For purposes of
calculating amounts payable by the Borrower to the Lenders under this Section 3.05,
each Lender shall be deemed to have funded each Eurodollar Rate Loan made by it
at the Eurodollar Rate for such Loan by a matching deposit or other borrowing
in the London interbank eurodollar market for a comparable amount and for a
comparable period, whether or not such Eurodollar Rate Loan was in fact so
funded.

3.06           
Mitigation Obligations;
Replacement of Lenders; Like Treatment. 

(a)                
Designation of a Different
Lending Office.  If any Lender
requests compensation under Section 3.04, or the Borrower is required to
pay any Indemnified Taxes or any additional amount to any Lender or any
Governmental Authority for the account of any Lender pursuant to Section
3.01, or if any Lender gives a notice pursuant to Section 3.02, then
such Lender shall, as applicable, 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 good faith judgment of such Lender, such designation
or assignment (i) would eliminate or reduce amounts payable pursuant to Section
3.01 or 3.04, as the case may be, in the future, or eliminate the
need for the notice pursuant to Section 3.02, as applicable, and (ii) in
each case, would not subject such Lender to any unreimbursed cost or expense
and would not otherwise be disadvantageous to such Lender.  The Borrower hereby
agrees to pay all reasonable costs and expenses incurred by any Lender in
connection with any such designation or assignment.

(b)                
Replacement of Lenders.  If any Lender requests compensation under Section
3.04, or if the Borrower is required to pay any Indemnified Taxes or any
additional amount to any Lender or any Governmental Authority for the account
of any Lender pursuant to Section 3.01 and, in each case, such Lender
has not or is unable to designate a different lending office in accordance with
Section 3.06(a), the Borrower may replace such Lender in accordance with
Section 10.13.
 

 

CREDIT AGREEMENT – Page 43 

 

 

 

(c)                
Like Treatment.  No Lender shall request compensation under Section 3.01,
3.02  or 3.04, unless such Lender is generally requesting
compensation from other similarly situated borrowers. 

3.07           
Survival.  All of the Borrower's
obligations under this Article III shall survive termination of the
Aggregate Commitments, repayment of all other Obligations hereunder, and
resignation of the Administrative Agent.

ARTICLE IV.

CONDITIONS PRECEDENT TO Committed loans

4.01           
Conditions of Initial Committed
Loan.  The obligation of each Lender
to make its initial Committed Loan hereunder is subject to satisfaction of the
following conditions precedent:

(a)                
The Administrative Agent's receipt
of the following, each of which shall be originals or facsimiles or electronic
pdfs (followed promptly by originals) unless otherwise specified, each properly
executed by a Responsible Officer of the Borrower, each dated the Closing Date
(or, in the case of certificates of governmental officials, a recent date
before the Closing Date) and each in form and substance satisfactory to the
Administrative Agent and each of the Lenders:

                                                                              
(i)           
executed counterparts of this
Agreement, sufficient in number for distribution to the Administrative Agent,
each Lender and the Borrower;

                                                                            
(ii)           
a Note executed by the Borrower in
favor of each Lender requesting a Note;

                                                                           
(iii)           
such certificates of resolutions
or other action, incumbency certificates and/or other certificates of
Responsible Officers of the Borrower as the Administrative Agent may reasonably
require evidencing the identity, authority and capacity of each Responsible
Officer thereof authorized to act as a Responsible Officer in connection with
this Agreement and the other Loan Documents to which the Borrower is a party;

                                                                          
(iv)           
such documents and certifications
as the Administrative Agent may reasonably require to evidence that the
Borrower is duly organized or formed, and that the Borrower is validly
existing, in good standing and qualified to engage in business in Illinois;

                                                                            
(v)           
a favorable opinion of Sidley
Austin LLP, counsel to the Borrower, addressed to the Administrative Agent and
each Lender, as to the matters set forth in Exhibit E and such other
matters concerning the Borrower and the Loan Documents as the Administrative
Agent may reasonably request;

                                                                          
(vi)           
a certificate of a Responsible
Officer of the Borrower either (A) attaching copies of all consents,
licenses and approvals required in connection with the execution, delivery and
performance by the Borrower and the validity

 

CREDIT AGREEMENT – Page 44 

 

 

 

against the Borrower of the Loan Documents to which it is a party, and
such consents, licenses and approvals shall be in full force and effect, or (B)
stating that no such consents, licenses or approvals are so required;

                                                                         
(vii)           
a certificate signed by a
Responsible Officer of the Borrower as of the Closing Date certifying (A) that
the conditions specified in Sections 4.02(a) and (b)  have been
satisfied or waived (which such waiver must be in writing), (B) that there has
been no event or circumstance since the date of the Audited Financial
Statements that has had or could reasonably be expected to have, either
individually or in the aggregate, a Material Adverse Effect, (C) that neither
the Borrower nor any Subsidiary is in default under or with respect to any
Contractual Obligation that could, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, and (D) that the
Borrower has disclosed to the Administrative Agent and the Lenders all matters
known to any Responsible Officer that, individually or in the aggregate, could
reasonably be expected to result in a Material Adverse Effect;

                                                                       
(viii)           
a duly completed Compliance
Certificate as of the Closing Date, signed by a Responsible Officer of the
Borrower, certifying as to no Default under the terms of this Agreement and
evidencing compliance with the Section 7.10; 

                                                                          
(ix)           
a duly completed Subordination
Agreement as of the Closing Date, signed by a Responsible Officer of the
Borrower; 

                                                                            
(x)           
evidence that all insurance
required to be maintained pursuant to the Loan Documents has been obtained and
is in effect;

                                                                          
(xi)           
all documentation and other
information requested by (or on behalf of) any Lender in order to comply with
requirements of Anti-Terrorism Laws;

                                                                         
(xii)           
evidence that the Borrower has
made a minimum equity investment of $1,000 in CoBank; and

                                                                       
(xiii)           
such other assurances, certificates,
documents, consents or opinions as the Administrative Agent or the Required
Lenders reasonably may require.

(b)                
Any fees required to be paid by
the Borrower pursuant to the Fee Letter on or before the Closing Date shall
have been paid.

(c)                
Unless waived by the
Administrative Agent, the Borrower shall have paid all reasonable and invoiced
fees, charges and disbursements of counsel to the Administrative Agent
(directly to such counsel if requested by the Administrative Agent) to the
extent invoiced prior to or on the Closing Date, plus such additional amounts
of such invoiced fees, charges and disbursements as shall constitute its
reasonable estimate of such fees, charges and disbursements incurred or to be
incurred by it through the closing proceedings (provided that such estimate
shall not thereafter preclude a final

 

CREDIT AGREEMENT – Page 45 

 

 

 

settling of accounts between the Borrower and the Administrative Agent
in accordance with the terms of this Agreement).

(d)                
The Closing Date shall have
occurred on or before February 27, 2015.

Without limiting the
generality of the provisions of the last paragraph of Section 9.03, for
purposes of determining compliance with the conditions specified in this Section
4.01, each Lender that has signed this Agreement shall be deemed to have
consented to, approved or accepted or to be satisfied with, each document or
other matter required thereunder to be consented to or approved by or
acceptable or satisfactory to a Lender unless the Administrative Agent shall
have received notice from such Lender prior to the proposed Closing Date
specifying its objection thereto.

4.02           
Conditions to all Committed
Loans.  The obligation of each Lender
to honor any Committed Loan Notice (other than a Committed Loan Notice
requesting only a conversion of Committed Loans to the other Type, or a
continuation of Eurodollar Rate Loans) is subject to the following conditions precedent:

(a)                
The representations and warranties
of the Borrower contained in Article V  or any other Loan Document
(other than the representation and warranty set forth in Section 5.05(c)),
or which are contained in any document furnished at any time under or in
connection herewith or therewith, shall be true and correct in all material
respects (or, to the extent any such representation or warranty is qualified as
to "materiality" or "Material Adverse Effect" shall be true
and correct in all respects) on and as of the date of such Committed Loan,
except to the extent that such representations and warranties specifically
refer to an earlier date, in which case they shall be true and correct as of
such earlier date, and except that for purposes of this Section 4.02,
the representations and warranties contained in subsections (a) and (b) of Section 5.05 
shall be deemed to refer to the most recent statements furnished pursuant to
subsections (a) and (b), respectively, of Section 6.01. 

(b)                
No Default shall exist, or would
result from such proposed Committed Loan or from the application of the
proceeds thereof.

(c)                
The Administrative Agent shall
have received a Committed Loan Notice in accordance with the requirements
hereof.

Each Committed Loan
Notice (other than a Committed Loan Notice requesting only a conversion of
Committed Loans to the other Type or a continuation of Eurodollar Rate Loans)
submitted by the Borrower shall be deemed to be a representation and warranty
that the conditions specified in Sections 4.02(a) and (b)  have
been satisfied on and as of the date of the applicable Committed Loan Notice.

 

CREDIT AGREEMENT – Page 46 

 

 

 

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

The Borrower represents and warrants to the Administrative Agent and
the Lenders that:

5.01           
Existence, Qualification and
Power.  The Borrower and each
Material Subsidiary (a) is duly organized or formed, validly existing and,
as applicable, in good standing under the applicable laws of the jurisdiction
of its incorporation or organization, (b) has all requisite power and authority
and all requisite governmental licenses, authorizations, consents and approvals
to (i) own or lease its assets and carry on its business and (ii) execute,
deliver and perform its obligations under the Loan Documents to which it is a
party, and (c) is duly qualified and is licensed and, as applicable, in good
standing under the applicable laws of each jurisdiction where its ownership,
lease or operation of properties or the conduct of its business requires such
qualification or license; except in each case referred to in subsections (b)(i) 
or (c), to the extent that failure to do so could not reasonably be
expected to have a Material Adverse Effect.

5.02           
Authorization; No Contravention.  The execution, delivery and performance by the
Borrower of each Loan Document to which it is party, has been duly authorized
by all necessary corporate or other organizational action, and do not and will
not (a) contravene any material term of any of the Borrower's Organization
Documents; (b) conflict with or result in any breach or contravention of, or
the creation of any Lien under, or require any payment to be made under
(i) any Contractual Obligation to which the Borrower is a party or
affecting the Borrower or the properties of the Borrower or any of its
Subsidiaries or (ii) any order, injunction, writ or decree of any Governmental
Authority or any arbitral award to which such Person or its property is
subject; or (c) violate any applicable law to which the Borrower is subject,
except in each case referred to in subsections (b)  and (c) 
above to the extent that any such conflict, breach, contravention, creation,
requirement or violation could reasonably be expected to have a Material
Adverse Effect.

5.03           
Governmental Authorization;
Other Consents.  No approval,
consent, exemption, authorization, or other action by, or notice to, or filing
with, any Governmental Authority or any other Person is necessary or required
in connection with the execution, delivery or performance by, the Borrower of
this Agreement or any other Loan Document other than those already obtained or
performed.

5.04           
Binding Effect.  This Agreement has been, and each other Loan
Document, when delivered hereunder, will have been, duly executed and delivered
by the Borrower.  This Agreement constitutes, and each other Loan Document when
so delivered will constitute, a legal, valid and binding obligation of the
Borrower, enforceable against the Borrower in accordance with its terms, except
as enforceability is limited by bankruptcy, insolvency, reorganization,
moratorium or other applicable laws relating to or affecting generally the
enforcement of creditors' rights and except to the extent that availability of
the remedy of specific performance or injunctive relief is subject to the
discretion of the court before which any proceeding therefor may be brought.

 

CREDIT AGREEMENT – Page 47 

 

 

 

5.05           
Financial Statements; No
Material Adverse Effect. 

(a)                
The Audited Financial Statements
(i) were prepared in accordance with GAAP consistently applied throughout
the period covered thereby, except as otherwise expressly noted therein; (ii)
fairly present in all material respects the financial condition of the Borrower
and its Subsidiaries as of the date thereof and their results of operations for
the period covered thereby in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted
therein; and (iii) show all material indebtedness and other liabilities,
direct or contingent, of the Borrower and its Subsidiaries as of the date
thereof in accordance with GAAP.

(b)                
The unaudited consolidated balance
sheet of the Borrower and its Subsidiaries dated September 30, 2014, and
the related consolidated statements of income or operations, shareholders'
equity and cash flows for the fiscal quarter ended on that date (i) were prepared
in accordance with GAAP consistently applied throughout the period covered
thereby, except as otherwise expressly noted therein; and (ii) fairly present
in all material respects the financial condition of the Borrower and its
Subsidiaries as of the date thereof and their results of operations for the
period covered thereby, subject, in the case of subsections (i)  and
(ii), to the absence of footnotes and to normal year-end audit
adjustments.  Schedule 5.05  sets forth all indebtedness and other
liabilities, direct or contingent, of the Borrower and its consolidated
Subsidiaries as of the Closing Date, including liabilities for taxes, material
commitments and Indebtedness, in each case only to the extent such amounts
(A) are not disclosed in a line item on the unaudited consolidated balance
sheet of the Borrower and its Subsidiaries dated September 30, 2014, and
(B) exceed $15,000,000 (individually, or in the aggregate for related
items).

(c)                
For the period from the date of
the Audited Financial Statements through the Closing Date, there has been no
event or circumstance, either individually or in the aggregate, that has had or
could reasonably be expected to have a Material Adverse Effect.

5.06           
Litigation.  There are no actions, suits, proceedings, claims or
disputes pending or, to the knowledge of the Borrower after due and diligent
investigation, threatened or contemplated, at law, in equity, in arbitration or
before any Governmental Authority, by or against the Borrower or any of its
Subsidiaries or against any of their properties or revenues that
(a) purport to affect or pertain to this Agreement or any other Loan
Document, or any of the transactions contemplated hereby, or (b) either
individually or in the aggregate could reasonably be expected to have a Material
Adverse Effect.

5.07           
No Default.  No Default has occurred and is continuing or would
result from the consummation of the transactions contemplated by this Agreement
or any other Loan Document.

5.08           
Ownership of Property; Liens.  Each of the Borrower and the Material Subsidiaries
has good record and marketable title in fee simple to, or valid leasehold
interests in, all assets reflected on the Audited Financial Statements or
acquired since the date of the Audited Financial Statements except for property
and assets sold or otherwise disposed of in the ordinary

 

CREDIT AGREEMENT – Page 48 

 

 

 

course of business or otherwise in accordance with the terms of this
Agreement since the date of the Audited Financial Statements and for such
defects in title or failure to have such title as could not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.  The
property of the Borrower and each of the Subsidiaries is subject to no Liens,
other than Liens permitted by Section 7.01. 

5.09           
Environmental Compliance.  The Borrower and its Subsidiaries conduct in the
ordinary course of business a review of the effect of existing Environmental
Laws and claims alleging potential liability or responsibility for violation of
any Environmental Law on their respective businesses, operations and
properties, and as a result thereof the Borrower has reasonably concluded that
such Environmental Laws and claims could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

5.10           
Insurance.  The properties of the Borrower and its Subsidiaries
are insured (a) with companies or associations (including affiliated
companies approved by the Administrative Agent (such approval not to be
unreasonably withheld or delayed)) and (b) in such amounts (after giving effect
to any self-insurance compatible with the standards set forth in Section
6.07), in each case of (a) and (b) preceding, as are customarily engaged by
companies engaged in similar businesses and owning similar properties in
localities where the Borrower or the applicable Subsidiary operates, with such
deductibles and covering such risks as are customarily carried by companies
engaged in similar businesses and owning similar properties in localities where
the Borrower or the applicable Subsidiary operates; provided however, that the
Borrower and such Subsidiary may self-insure for physical damage to
automobiles, welfare benefits and against liability to workers in any state or
jurisdiction, or may effect worker's compensation insurance therein through an
insurance fund operated by such state or jurisdiction in accordance with the
provisions of Section 6.07. 

5.11           
Taxes.  The Borrower and its Subsidiaries have
(a) made or filed all Federal and state income and all other material tax
returns, reports and declarations required by any jurisdiction to which any of
them is subject or properly filed for and received extensions with respect
thereto which are still in full force and in effect and which have been fully
complied with in all material respects, (b) have paid all Federal and state
income and other material taxes, assessments, fees and other governmental
charges shown or determined to be due on such returns, reports, and
declarations, except those which are being contested in good faith by
appropriate proceedings and for which adequate reserves, to the extent required
by GAAP, have been established, and (c) set aside on their respective books
provisions reasonably adequate for the payment of all estimated taxes for
periods subsequent to the periods to which such returns, reports or
declarations apply.

5.12           
ERISA Compliance. 

(a)                
Each Plan is in compliance in all
material respects with the applicable provisions of ERISA, the Code and other
applicable Federal or state laws.  Each Plan that is intended to qualify under
Section 401(a) of the Code has received a favorable determination letter from
the IRS or an application for such a letter is currently being processed by the
IRS with respect thereto and, to the best knowledge of the Borrower, nothing
has occurred which would prevent, or cause the loss of, such qualification,
except

 

CREDIT AGREEMENT – Page 49 

 

 

 

where the failure to so qualify could not reasonably be expected to
have a Material Adverse Effect.  The Borrower and each ERISA Affiliate have
made all required contributions to each Plan subject to Section 412 of the
Code, and no application for a funding waiver or an extension of any
amortization period pursuant to Section 412 of the Code has been made with
respect to any Plan except for those that could not, either individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect.

(b)                
There are no pending or, to the
best knowledge of the Borrower, threatened claims, actions or lawsuits, or
action by any Governmental Authority, with respect to any Plan that could
reasonably be expected to have a Material Adverse Effect.  There has been no
prohibited transaction or violation of the fiduciary responsibility rules with
respect to any Plan that has resulted or could reasonably be expected to result
in a Material Adverse Effect.

(c)                
(i) No ERISA Event has
occurred or is reasonably expected to occur; (ii) no Pension Plan has any
Unfunded Pension Liability; (iii) neither the Borrower nor any ERISA Affiliate
has incurred, or reasonably expects to incur, any liability under Title IV of
ERISA with respect to any Pension Plan (other than premiums due and not
delinquent under Section 4007 of ERISA); (iv) neither the Borrower nor any
ERISA Affiliate has incurred, or reasonably expects to incur, any liability
(and no event has occurred which, with the giving of notice under Section 4219
of ERISA, would result in such liability) under Section 4201 or 4243 of ERISA
with respect to a Multiemployer Plan; and (v) neither the Borrower nor any
ERISA Affiliate has engaged in a transaction that could be subject to Section
4069 or 4212(c) of ERISA, except for each of the foregoing clauses that could
not, either individually or in the aggregate, reasonably be expected to have or
to result in, a Material Adverse Effect.

5.13           
Subsidiaries; Equity Interests.  As of the Closing Date, (a) the Borrower has no
Subsidiaries other than those specifically disclosed in Exhibit 21 to the
Borrower's Annual Report on Form 10-K for the fiscal year ended December 31,
2013, as supplemented by any changes to such Subsidiaries set forth in Part
(a) of Schedule 5.13, and (b) all of the outstanding Equity
Interests in such Subsidiaries have been validly issued, are fully paid and
nonassessable and are wholly-owned by the Borrower except as otherwise
specified on Part (a) of Schedule 5.13  free and clear of all
Liens except any Lien that is permitted under Section 7.01.  As of
the Closing Date, the Borrower has no equity investments in any other
corporation or entity other than those specifically disclosed in Part (b) of Schedule
5.13. 

5.14           
Margin Regulations; Investment
Company Act.

(a)                
The Borrower is not engaged,
principally or as one of its important activities, in the business of
purchasing or carrying margin stock (within the meaning of Regulation U issued
by the FRB), or extending credit for the purpose of purchasing or carrying
margin stock.  No proceeds of any Borrowing will be used for any purpose in contravention
or violation of Regulation U issued by the FRB.  Following the application of
the proceeds of each Borrowing, not more than 25% of the value of the assets
(either of the Borrower only or of the Borrower and its Subsidiaries on a
consolidated basis)

 

CREDIT AGREEMENT – Page 50 

 

 

 

subject to the provisions of Section 7.01 or Section 7.05
or subject to any restriction contained in any agreement or instrument between
the Borrower and any Lender or any Affiliate of any Lender relating to
Indebtedness and within the scope of Section 8.01(e) will be margin
stock.

(b)                
None of the Borrower or any
Material Subsidiary is or is required to be registered as an "investment
company" under the Investment Company Act of 1940.

5.15           
Disclosure.  No report, financial statement, certificate or
other information furnished (whether in writing or orally) by or on behalf of
the Borrower (other than any projections and information of a general economic
or an industry-specific nature, as to which the Borrower makes no
representation) to the Administrative Agent or any Lender in connection with
the transactions contemplated hereby and the negotiation of this Agreement or
delivered hereunder or under any other Loan Document (in each case, as modified
or supplemented by other information so furnished or made available publicly)
when taken as a whole contains any material misstatement of fact or omits to
state any material fact necessary to make the statements therein taken as a
whole, in the light of the circumstances under which they were made, not
materially misleading.

5.16           
Compliance with Laws.  The Borrower and each Subsidiary is in compliance
in all material respects with the requirements of all applicable laws and all
orders, writs, injunctions and decrees applicable to it or to its properties,
except in such instances in which (a) such requirement of applicable law
or order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted or (b) the failure to comply
therewith, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

5.17           
Taxpayer Identification Number.  The Borrower's true and correct U.S. taxpayer
identification number is set forth on Schedule 10.02. 

5.18           
Anti-Terrorism, USA Patriot Act
and OFAC. 

(a)                
The Borrower is not and shall not
be (i) a Person with whom any Lender is restricted from doing business
under any Anti-Terrorism Law, (ii) engaged in any business involved in
making or receiving any contribution of funds, goods or services to or for the
benefit of such a Person or in any transaction that evades or avoids, or has
the purpose of evading or avoiding, the prohibitions set forth in any
Anti-Terrorism Law, or (iii) otherwise in violation of any Anti-Terrorism
Law.

(b)                
To the extent applicable, each of
the Borrower and its Subsidiaries is in compliance, in all material respects,
with (i) the Trading with the Enemy Act and each of the foreign assets
control regulations of the United States Treasury Department (31 CFR Subtitle
B, Chapter V) and any other enabling legislation or executive order relating
thereto and (ii) the USA Patriot Act.  No part of the proceeds of the
Loans will be used, directly or indirectly, by the Borrower or any of its
Subsidiaries for any payments to any governmental official or employee,
political party, official of a political party, candidate for political office,
or anyone else acting in an official capacity, in order to obtain, retain

 

CREDIT AGREEMENT – Page 51 

 

 

 

or direct business or obtain any improper advantage, in violation of
the United States Foreign Corrupt Practices Act of 1977.

(c)                
None of the Borrower or any of its
Subsidiaries nor, to the knowledge of the Borrower, any director, officer,
agent, employee or Affiliate of the Borrower or any of its Subsidiaries,
(i) is a person on the list of “Specially Designated Nationals and Blocked
Persons” or (ii) is currently subject to any U.S. sanctions administered
by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”);
and the Borrower will not directly or indirectly use the proceeds of the Loans
or otherwise knowingly make available such proceeds to any person, for the
purpose of financing the activities of any person currently subject to any
United States sanctions administered by OFAC.

ARTICLE VI.

AFFIRMATIVE COVENANTS

So long as any Lender
shall have any Commitment hereunder, any Loan or other Obligation hereunder
shall remain unpaid or unsatisfied, the Borrower shall, and shall (except in
the case of the covenants set forth in Sections 6.01, 6.02, and 6.03)
cause each Subsidiary to:

6.01           
Financial Statements.  Deliver to the Administrative Agent:

(a)                
as soon as available, but in any
event within 90 days after the end of each fiscal year of the Borrower,
beginning with the fiscal year ending December 31, 2014, a consolidated balance
sheet of the Borrower and its Subsidiaries as at the end of such fiscal year,
and the related consolidated statements of operations, common stockholders'
equity, and cash flows for such fiscal year, setting forth in each case in comparative
form the figures for the previous fiscal year, all in reasonable detail and
prepared in accordance with GAAP, audited and accompanied by a report and
opinion of PricewaterhouseCoopers LLP or other independent certified public
accountant of nationally recognized standing reasonably acceptable to the
Required Lenders, which report and opinion shall be prepared in accordance with
generally accepted auditing standards and shall not be subject to any
"going concern" or like qualification or exception or any
qualification or exception as to the scope of such audit; provided, that if the
Borrower switches from one independent public accounting firm to another and if
such switch has occurred during any fiscal period being audited by such new
accounting firm, the audit report of any such new accounting firm may contain a
qualification or exception as to the scope of such consolidated financial
statements that relates to the period of such fiscal period prior to its
retention); and

(b)                
as soon as available, but in any
event within 45 days after the end of each of the first three fiscal quarters
of each fiscal year of the Borrower (commencing with the fiscal quarter ended
March 31, 2015), a consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of such fiscal quarter, the related consolidated
statements of operations for such fiscal quarter and for the portion of the
Borrower's fiscal year then ended, and the related consolidated statements of
common stockholders' equity, and cash flows for the portion of the Borrower's
fiscal year then ended, in each case setting forth in

 

CREDIT AGREEMENT – Page 52 

 

 

 

comparative form, as applicable, prepared in accordance with GAAP
consistently applied throughout the period covered thereby and in reasonable
detail, such consolidated statements to be certified by the chief executive
officer, chief financial officer, chief accounting officer, treasurer or
controller of the Borrower as fairly presenting in all material respects the
financial condition, results of operations, common stockholders' equity and
cash flows of the Borrower and its Subsidiaries in accordance with GAAP,
subject only to normal year-end audit adjustments and the absence of footnotes.

6.02           
Certificates; Other Information.  Deliver to the Administrative Agent:

(a)                
concurrently with the delivery of
the financial statements referred to in Section 6.01(a), a certificate
of its independent certified public accountants to the effect that they have
read a copy of this Agreement, and that, in making the examination necessary to
said certification, they have obtained no knowledge of any Default, or if such
accountants shall have obtained knowledge of any then existing Default they
shall disclose in such statement any such Default; provided  that such
accountants shall not be liable to the Lenders for failure to obtain knowledge
of any Default; 

(b)                
in form and detail reasonably
satisfactory to the Administrative Agent, concurrently with the delivery of the
financial statements referred to in Sections 6.01(a)  and (b) 
commencing as of the first fiscal quarter of the Borrower after the Closing
Date, a duly completed Compliance Certificate signed by the
chief executive officer, chief financial officer, chief accounting officer,
treasurer or controller of the Borrower;

(c)                
promptly after any request by the
Administrative Agent, copies of any detailed audit reports, management letters
or recommendations submitted to the board of directors (or the audit committee
of the board of directors) of the Borrower by independent accountants in
connection with the accounts or books of the Borrower or any Subsidiary, or any
audit of any of them;

(d)                
promptly after the same are
available, copies of each 10-K, 10-Q and 8-K statement which the Borrower may
file or be required to file with the SEC under Section 13 or 15(d) of the
Securities Exchange Act of 1934, and not otherwise required to be delivered to
the Administrative Agent pursuant hereto;

(e)                
to the extent permitted by
applicable law, promptly, and in any event within five Business Days after receipt
thereof by the Borrower or any Subsidiary, copies of each notice or other
correspondence received from the SEC (or comparable agency in any applicable
non-U.S. jurisdiction) concerning any investigation by the enforcement division
of such agency regarding financial or other operational results of the Borrower
or any Subsidiary; and 

(f)                 
promptly, such additional
information regarding the business, financial or corporate affairs of the
Borrower or any Subsidiary, or compliance with the terms of the Loan Documents,
as the Administrative Agent may from time to time reasonably request.

Information required to be
delivered pursuant to Section 6.01(a) or (b)  or Section
6.02(d) (to the extent any such information is included in materials
otherwise filed with the SEC) may be

CREDIT AGREEMENT – Page 53 

 

 

 

delivered electronically and if so delivered, shall be
deemed to have been delivered on the date (i) on which the Borrower posts such
documents, or provides a link thereto on the Borrower's website on the Internet
at the website address listed on Schedule 10.02; or (ii) on which such
documents are posted on the Borrower's behalf on an Internet or intranet
website, if any, to which each Lender and the Administrative Agent have access
(whether a commercial, third-party website or whether sponsored by the
Administrative Agent); provided  that:  (i) upon written request by
the Administrative Agent or any Lender, the Borrower shall deliver paper copies
of such documents to the Administrative Agent or such Lender that requests the
Borrower to deliver such paper copies until a written request to cease
delivering paper copies is given by the Administrative Agent or such Lender and
(ii) the Borrower shall notify the Administrative Agent (by telecopier or
electronic mail) of the posting of any such documents and provide to the
Administrative Agent by electronic mail electronic versions (i.e., soft
copies) of such documents.  Notwithstanding anything contained herein, in every
instance the Borrower shall be required to provide paper or pdf copies of the
Compliance Certificates required by Section 6.02(b) to the
Administrative Agent.  Except for such Compliance Certificates, the
Administrative Agent shall have no obligation to request the delivery or to
maintain copies of the documents referred to above, and in any event shall have
no responsibility to monitor compliance by the Borrower with any such request
for delivery, and each Lender shall be solely responsible for requesting
delivery to it or maintaining its copies of such documents.

The Borrower hereby acknowledges
that (a) the Administrative Agent and/or CoBank, as the Lead Arranger, will
make available to the Lenders materials and/or information provided by or on
behalf of the Borrower hereunder (collectively, "Borrower Materials")
by posting the Borrower Materials on IntraLinks or another similar confidential
and secure electronic system (the "Platform") and (b)
certain of the Lenders (each, a "Public Lender") may
have personnel who do not wish to receive material non-public information with
respect to the Borrower or its Affiliates, or the respective securities of any
of the foregoing, and who may be engaged in investment and other market-related
activities with respect to such Persons' securities.  All Borrower Materials
that have been filed with the SEC and available on the SEC's EDGAR system shall
be deemed "PUBLIC."   The Borrower hereby agrees that (w) all
Borrower Materials (if any) that are to be made available to Public Lenders
shall be clearly and conspicuously marked "PUBLIC" which, at a minimum,
shall mean that the word "PUBLIC" shall appear prominently on the
first page thereof; (x) by marking Borrower Materials "PUBLIC," the
Borrower shall be deemed to have authorized the Administrative Agent and the
Lenders to treat such Borrower Materials as not containing any material
non-public information with respect to the Borrower or its securities for
purposes of United States Federal and state securities laws (provided, however,
that to the extent such Borrower Materials constitute Information, they shall
be treated as set forth in Section 10.07); (y) all Borrower
Materials marked "PUBLIC" are permitted to be made available through
a portion of the Platform designated "Public Side Information;" and
(z) the Administrative Agent and CoBank, as the Lead Arranger, shall be
entitled to treat any Borrower Materials that are not marked "PUBLIC"
as being suitable only for posting on a portion of the Platform that is not
designated "Public Side Information."  Notwithstanding the foregoing,
the Borrower shall be under no obligation to mark any Borrower Materials
"PUBLIC."

 

CREDIT AGREEMENT – Page 54 

 

 

 

6.03           
Notices. 

(a)                
Promptly notify the Administrative
Agent of the occurrence of any Default;

(b)                
Promptly after any Responsible
Officer has knowledge thereof, notify the Administrative Agent of any matter
that has resulted or could reasonably be expected to result in a Material
Adverse Effect;

(c)                
Promptly after any Responsible
Officer has knowledge thereof, notify the Administrative Agent of the filing or
commencement of, or any written threat or written notice of intention of any
Person to file or commence, any action, suit, litigation or proceeding, whether
at law or in equity by or before any Governmental Authority against the
Borrower or any Subsidiary that could reasonably be expected to result in a Material
Adverse Effect;

(d)                
Promptly after any Responsible
Officer has knowledge thereof, notify the Administrative Agent of any material
change in accounting policies or financial reporting practices by the Borrower
or any Subsidiary and not previously disclosed in the financial statements
delivered pursuant to Section 6.01; and

(e)                
Promptly after any Responsible
Officer has knowledge thereof, notify the Administrative Agent of any
announcement by any of Moody's, S&P or Fitch of any change in a Debt
Rating.

Each notice pursuant to
this Section 6.03 (other than Section 6.03(e)) shall be
accompanied by a written statement of a Responsible Officer of the Borrower
setting forth details of the occurrence referred to therein and stating what
action the Borrower has taken and proposes to take with respect thereto, if
any.  Each notice pursuant to Section 6.03(a) shall describe with
particularity any and all provisions of this Agreement and any other Loan
Document that have been breached, if any.

6.04           
Payment of Obligations.  Pay and discharge as the same shall become due and
payable in the ordinary course of business, all obligations and liabilities of
the Borrower and the Material Subsidiaries, including all such tax liabilities,
assessments and governmental charges or levies upon it or its properties or
assets, unless the same are being contested in good faith by appropriate
proceedings diligently conducted and adequate reserves in accordance with GAAP
are being maintained by the Borrower or such Material Subsidiary, except to the
extent any failure to pay or discharge the same could not reasonably be
expected to result in a Material Adverse Effect.

6.05           
Preservation of Existence, Etc.  (a) Except as otherwise expressly permitted under Section
7.04, preserve, renew and maintain in full force and effect the legal
existence of the Borrower under the applicable laws of the jurisdiction of its
organization but only to the extent that such transaction could not reasonably
be expected to have a Material Adverse Effect; (b) except as otherwise
expressly permitted under Section 7.04 and 7.05, preserve, renew
and maintain in full force and effect the legal existence of each Material
Subsidiary under the applicable laws of the jurisdiction of its organization
but only to the extent that failure to do so

 

CREDIT AGREEMENT – Page 55 

 

 

 

could not reasonably be expected to have a Material Adverse Effect; (c)
except as otherwise expressly permitted under Section 7.04 and 7.05,
take all reasonable action to maintain its good standing and all rights,
privileges, permits, licenses and franchises necessary or desirable in the
normal conduct of its business but only to the extent that failure to do so
could not reasonably be expected to have a Material Adverse Effect; and
(d) preserve or renew all of its registered patents, trademarks, trade
names and service marks, the non-preservation of which could reasonably be
expected to have a Material Adverse Effect.

6.06           
Maintenance of Properties;
Office.  (a) Maintain, preserve and
protect all of the properties and equipment necessary in the operation of the
business of the Borrower and each Material Subsidiary in good working order and
condition, except where the failure to do so could not reasonably be expected
to have a Material Adverse Effect; and (b) make all necessary repairs thereto
and renewals and replacements thereof, except where the failure to do so could
not reasonably be expected to have a Material Adverse Effect; provided  that,
nothing in this Section 6.06 shall prevent the Borrower from
discontinuing the operation and maintenance of any of its properties or those
of its Material Subsidiaries that meets each of the following conditions: 
(i) such discontinuance is, in the judgment of the Borrower, desirable in
the conduct of its or their business, (ii) such discontinuance does not in
the aggregate materially adversely affect the business of the Borrower and its
Material Subsidiaries on a consolidated basis and (iii) such
discontinuance is not otherwise expressly prohibited under the terms of this
Agreement.

6.07           
Maintenance of Insurance.  Maintain with insurance companies or associations
(including affiliated companies approved by the Administrative Agent (such
approval not to be unreasonably withheld or delayed)) customarily used by
Persons engaged in the same or similar businesses and owning similar properties
in localities where the Borrower or the applicable Subsidiary operates,
insurance with respect to its properties and business against loss or damage of
the kinds customarily insured against by Persons engaged in the same or similar
businesses and owning similar properties in localities where the Borrower or
the applicable Subsidiary operates, of such types and in such amounts (after
giving effect to self-insurance compatible with the standards following the
parenthetical contained in Section 5.10) as are customarily carried
under similar circumstances by such other Persons; provided, however,
that the Borrower and any of its Subsidiaries may self insure for physical
damage to automobiles, welfare benefits and against liability to workers in any
state or jurisdiction, or may effect worker's compensation insurance therein
through an insurance fund operated by such state or jurisdiction.

6.08           
Compliance with Laws.  Comply in all material respects with the
requirements of all applicable laws and all orders, writs, injunctions and
decrees applicable to it or to its business or property, except in such
instances in which (a) such requirement of applicable law or order, writ,
injunction or decree is being contested in good faith by appropriate
proceedings diligently conducted or (b) the failure to comply therewith
could not reasonably be expected to have a Material Adverse Effect.

6.09           
Books and Records.  Maintain proper books of record and account, in
which full, true and correct entries in all material respects and are in
material conformity with GAAP consistently applied during such period shall be
made of all material financial transactions and matters involving the assets
and business of the Borrower or such Material Subsidiary, as the case may be
(it being understood and agreed that any foreign Subsidiary may maintain
individual

 

CREDIT AGREEMENT – Page 56 

 

 

 

books and records in conformity with generally accepted accounting
principles in its respective country of organization and that such maintenance
shall not constitute a breach of the representations, warranties or covenants
hereunder).

6.10           
Inspection Rights. 

(a)                
Permit the Administrative Agent or
any of the Administrative Agent's other designated representatives, to visit
and inspect any of the properties of the Borrower or any of its Subsidiaries,
to examine the books of account of the Borrower and its Subsidiaries (and to
make copies thereof and extracts therefrom), and to discuss the affairs,
finances and accounts of the Borrower and its Subsidiaries with, and to be
advised as to the same by, its and their officers, employees and independent
public accountants (such accountants being hereby authorized by the Borrower to
so discuss and advise) all at the expense of the Borrower and, so long as there
exists no Event of Default that is continuing, at such reasonable times and
intervals as the Administrative Agent may reasonably request;

(b)                
permit each Lender or any of each
such Lenders' other designated representatives, not more than once per fiscal
year (and at the expense of such Lender), to visit and inspect any of the
properties of the Borrower or any of its Subsidiaries during normal business
hours, to examine the books of account of the Borrower and its Subsidiaries
(and to make copies thereof and extracts therefrom), and to discuss the
affairs, finances and accounts of the Borrower and its Subsidiaries with, and
to be advised as to the same by, its and their officers, employees and
independent public accountants (such accountants being hereby authorized by the
Borrower to so discuss and advise) upon the request by such Lender with
reasonable notice, and 

(c)                
upon an Event of Default and for
so long as it is continuing, permit the Lenders or any of the Lenders' other
designated representatives, to visit and inspect any of the properties of the
Borrower or any of its Subsidiaries, to examine the books of account of the
Borrower and its Subsidiaries (and to make copies thereof and extracts
therefrom), and to discuss the affairs, finances and accounts of the Borrower
and its Subsidiaries with, and to be advised as to the same by, its and their
officers, employees and independent public accountants (such accountants being
hereby authorized by the Borrower to so discuss and advise) at the expense of
the Borrower and at such reasonable times and intervals as any such Lender may
reasonably request.  

In
connection with any such inspections or discussions, (i) the Borrower shall be
given reasonable notice of and shall have the right to be present at such
inspections or discussions, and (ii) each Lender, on behalf of itself and any
representative authorized by it, agrees to treat all non public information as
confidential information pursuant to Section 10.07 and to take all
reasonable precautions to prevent such confidential information from being
exposed to third parties and to those of its employees and representatives who
do not need to know such confidential information; provided that this Section
6.10 shall not affect the disclosure by any Lender of information required
to be disclosed to its auditors, regulatory agencies or pursuant to subpoena or
other legal process or by virtue of any other law, regulation, order or
interpretation.

 

CREDIT AGREEMENT – Page 57 

 

 

 

6.11           
Use of Proceeds.  Use the proceeds of the Committed Loans for (i)
working capital associated with an equipment handset installment program, (ii)
funding the purchase of spectrum in the current AWS auction, (iii) paying fees
and expenses relating to the Committed Loans, and (iv) other general corporate
purposes, including working capital, capital expenditures, non-hostile
acquisitions and other general corporate purposes not in contravention of any
applicable law applicable to the Borrower or any Subsidiary or of any Loan
Document.

6.12           
Indebtedness Owed to Parent
Affiliated Companies.  Cause all
Consolidated Funded Indebtedness of Borrower or any of its Subsidiaries owed to
any Parent Affiliated Company, whether existing on or as of the Closing Date or
created, incurred or arising at any time thereafter (a) at all times to be and
remain unsecured, and (b) (i) (other than Refinancing Debt) in an aggregate
principal amount at any time outstanding in excess of $105,000,000, and
(ii) all Refinancing Indebtedness in an aggregate principal amount at any
time outstanding in excess of $250,000,000, in each case of subsections (i) and
(ii) preceding, at all times to be and remain subordinated to the Obligations
pursuant to the Subordination Agreement.

6.13           
Further Assurances.  Cooperate with the Lenders and the Administrative
Agent and execute such further instruments and documents as the Lenders or the
Administrative Agent shall reasonably request to carry out to their satisfaction
the transactions contemplated by this Agreement and the other Loan Documents.

6.14           
CoBank Equity.  So long as CoBank is a Lender hereunder, the
Borrower will (a) maintain its status as an entity eligible to borrow from
CoBank and (b) acquire equity in CoBank in such amounts and at such times as
CoBank may require in accordance with CoBank's Bylaws and Capital Plan (as each
may be amended from time to time), except that the maximum amount of equity
that the Borrower may be required to purchase in CoBank in connection with the
Loans made by CoBank may not exceed the maximum amount permitted by the Bylaws
and the Capital Plan at the time this Agreement is entered into. The Borrower
acknowledges receipt of a copy of (i) CoBank's most recent annual report,
and if more recent, CoBank's latest quarterly report, (ii) CoBank's Notice to
Prospective Stockholders and (iii) CoBank's Bylaws and Capital Plan, which
describe the nature of all of the Borrower's stock and other equities in CoBank
acquired in connection with its patronage loan from CoBank (the “CoBank
Equities”) as well as capitalization requirements, and agrees to be
bound by the terms thereof.  CoBank hereby agrees that its statutory Lien in
and with respect to the CoBank Equities shall not secure an aggregate principal
amount of Obligations held by CoBank (or other amounts of Indebtedness) in the
aggregate in excess of $10,400,000. 

ARTICLE VII.

NEGATIVE COVENANTS

So long as any Lender
shall have any Commitment hereunder, any Loan or other Obligation hereunder
shall remain unpaid or unsatisfied, the Borrower shall not, nor shall it permit
any Subsidiary to, directly or indirectly:

7.01           
Liens.  Create, incur, assume or suffer to exist any Lien
upon any of its property, assets or revenues (including, without limitation,
Equity Interests owned by the Borrower and any of its Subsidiaries), whether
now owned or hereafter acquired, other than the following:

 

CREDIT AGREEMENT – Page 58 

 

 

 

(a)                
pro rata Liens securing any of the
Obligations owing to the Lenders (including CoBank’s statutory Lien in the
CoBank Equities);

(b)                
Liens to secure taxes, assessments
and other governmental charges in respect of obligations not overdue or Liens
on properties to secure claims for labor, material or supplies in respect of
obligations not overdue or in respect of which the Borrower or relevant
Subsidiary shall at the time in good faith be prosecuting an appeal or
proceeding for review and in respect of which a stay of execution shall have
been obtained pending such appeal or review and for which any reserves required
in accordance with GAAP have been established;

(c)                
deposits or pledges made in
connection with, or to secure payment of, workmen's compensation, unemployment
insurance, old age pensions or other social security obligations;

(d)                
Liens on properties in respect of
judgments or awards that have been in force for less than the applicable period
for taking an appeal so long as execution is not levied thereunder or in
respect of which the Borrower or relevant Subsidiary shall at the time in good
faith be prosecuting an appeal or proceeding for review and in respect of which
a stay of execution shall have been obtained pending such appeal or review and
for which any reserves required in accordance with GAAP have been established;

(e)                
Liens of carriers, warehousemen,
mechanics and materialmen, and other like liens on properties in existence less
than 120 days from the date of creation thereof in respect of obligations not
overdue, or which are being contested in good faith and by appropriate
proceedings diligently conducted, if adequate reserves with respect thereto are
maintained on the books of the Borrower or relevant Subsidiary;

(f)                 
encumbrances consisting of
easements, rights of way, zoning restrictions, restrictions on the use of real
property and defects and irregularities in the title thereto, landlord's or
lessor's Liens under leases to which the Borrower or relevant Subsidiary is a
party or under applicable law, and other minor Liens or encumbrances none of
which in the opinion of the Borrower interferes materially with the use of the
property affected in the ordinary conduct of the business of the Borrower or
such Subsidiary, which defects do not individually or in the aggregate have a
materially adverse effect on the business of the Borrower or such Subsidiary
individually or of the Borrower and its Subsidiaries taken as a whole;

(g)                
(i) outstanding Liens on the
Closing Date securing Indebtedness of less than $25,000,000 and
(ii) outstanding Liens on the Closing Date securing Indebtedness over
$25,000,000 that are listed on Schedule 7.01, and, in each case, any
extension, renewal or replacement thereof, in whole or in part, provided
however, that the principal amount secured thereby shall not exceed the
principal amount secured at the time of extension, renewal or replacement, and
that such extension, renewal or replacement shall be limited to only that
property (or any portion of such property) which secured the obligation so
extended, renewed or replaced (plus any improvements on such property or
portion of such property);

 

CREDIT AGREEMENT – Page 59 

 

 

 

(h)                
so long as no Event of Default
exists at the time such Lien is created, Liens on any Specified Equity
Interests, provided, however, that in each case such Liens
(A) are incurred only in connection with any Monetization Transaction to
secure obligations owed under such Monetization Transaction, (B) such
Liens cover or otherwise attach to only the specific Specified Equity Interests
which are the subject of such Monetization Transaction (and rights and
interests usually and customarily related thereto, e.g., proceeds and
dividends) and do not cover any other property or assets owned or acquired by
the Borrower or any of its Subsidiaries, and (C) such Liens remain in
existence only during the continuation of such Monetization Transaction;

(i)                  
so long as no Default exists
before and immediately after giving effect to any such Liens at the time the
contractual obligation to grant such Liens is entered into by the Borrower or
its Subsidiaries, Liens in favor of governmental entities on assets and
properties financed thereby in respect of Indebtedness permitted to be incurred
under Section 7.03(h); and

(j)                 
any other Liens on the property
and assets of the Borrower and any of its Subsidiaries; provided, however, with
respect to any Liens that secure Indebtedness of the Borrower or any
Subsidiary, (i) in no event shall the sum of (A) the amount of outstanding
Indebtedness of the Borrower or any Subsidiary, if any, secured by Liens
permitted by this subsection (j), plus (B) the amount of outstanding
Indebtedness of the Subsidiaries permitted by Section 7.03(e) but not
secured by Liens permitted under this subsection (j), plus (C) the amount of
any other Indebtedness (as defined in the Parent Credit Agreement) incurred by
any of the Parent Affiliated Companies, if any, and secured by Liens permitted
by Section 7.01(j) of the Parent Credit Agreement, exceed in the aggregate at
any time $300,000,000 and (ii) such Lien may only be incurred so long as no
Event of Default exists at the time such Lien is created.

7.02           
Investments.  Make any Investments, except:

(a)                
Investments 

                                                                              
(i)           
held by the Borrower or such
Subsidiary in the form of cash and Cash Equivalents, 

                                                                            
(ii)           
made in the ordinary course of
business consisting of Uniform Commercial Code Article 3 endorsements for
collection or deposit and Uniform Commercial Code Article 4 customary trade
arrangements with customers, in each case consistent with past practices, 

                                                                           
(iii)           
Investments (including debt
obligations and Equity Interests) received in connection with the bankruptcy or
reorganization of suppliers and customers or in settlement of delinquent
obligations of, or other disputes with, customers and suppliers arising in the
ordinary course of business or upon the foreclosure with respect to any secured
Investment or other transfer of title with respect to any secured Investment,
in each case only to the extent reasonably necessary in order to prevent or
limit loss,

 

CREDIT AGREEMENT – Page 60 

 

 

 

                                                                          
(iv)           
in any Special Entity, so long as
in each case such Investments are (A) made in the ordinary course of
business to fund operating expenses (including, without limitation, purchases
of inventory in the ordinary course of business and capital expenditures
incurred in the ordinary course of business consistent with past practices but
only to the extent they are Ordinary Capital Expenditures) of such Special
Entity, (B) consistent with past practices of the Borrower, its Subsidiaries
and such Special Entities and (C) either (I) not in excess of
$25,000,000 in the aggregate at any time outstanding or (II) otherwise
made pursuant to agreements, documents or other instruments pursuant to which
the Borrower or such Subsidiary shall have a commitment to fund and in respect
of which the Borrower shall, upon the request of the Administrative Agent, use
commercially reasonable efforts to cause the Administrative Agent, for the
benefit of itself and the other Lenders, to have a perfected first Lien within
thirty (30) days (or such longer time period as the Administrative Agent may
agree) following the date of any such Investment under this subclause (II) (and
subject to an agreement among the Administrative Agent on behalf of the Lenders
on the one hand, and the administrative agent on behalf of the lenders under
the Parent Credit Agreement, on the other hand, regarding such Liens), but in
no event shall the aggregate amount of all Investments made under this
subclause (II) exceed $50,000,000; 

                                                                            
(v)           
Investments consisting of
extensions of credit in the nature of accounts receivable or notes receivable
arising from the grant of trade credit in the ordinary course of business and
consistent with past practices; and

                                                                          
(vi)           
the CoBank Equities and any other
stock or securities of, or Investments in, CoBank or investment services or
programs;

(b)                
in addition to Investments
permitted by subsection (a) preceding, Investments of any Subsidiary in the
Borrower;

(c)                
in addition to Investments
permitted by subsections (a) and (b) preceding, Investments of the Borrower or
any Subsidiary in any Subsidiary so long as in each case such Investments are
(i) made in the ordinary course of business to fund operating expenses of such
Subsidiary (including, without limitation, purchases of inventory in the
ordinary course of business and capital expenditures incurred in the ordinary
course of business consistent with past practices but only to the extent they
are Ordinary Capital Expenditures) and (ii) consistent with past practices of
the Borrower and its Subsidiaries;

(d)                
in addition to Investments
permitted by subsections (a), (b) and (c) preceding, Liens, Indebtedness,
fundamental changes, Dispositions and Restricted Payments, in each case only as
each is specifically permitted under Sections 7.01, 7.03, 7.04,
7.05  and 7.06, respectively, to the extent that any constitute
Investments;

(e)                
in addition to Investments
permitted by subsections (a), (b), (c) and (d) preceding, so long as (i) no
Event of Default exists before and after giving effect to any such Investment
and (ii) the Borrower is in pro-forma compliance with each of the

CREDIT AGREEMENT – Page 61 

 

 

 

covenants in Section
7.10 after giving effect to any such proposed Investment, the Borrower and
its Subsidiaries may make any Investment; and

(f)                 
in addition to Investments
permitted by subsections (a), (b), (c), (d) and (e) preceding, so long as (i)
no Event of Default under Section 8.01(a) exists before and immediately
after giving effect to any such Investment and (ii) Outstanding Amounts of all
Committed Loans on any date of any Investment are not more than zero, the
Borrower and its Subsidiaries may make any Investment.

7.03           
Indebtedness.  Solely with respect to any Subsidiary, create,
incur, assume or suffer to exist any Indebtedness, except:

(a)                
Indebtedness under the Loan
Documents;

(b)                
Indebtedness (including any
Guarantees thereof) outstanding on the date hereof and listed on Schedule
7.03 and any refinancings, refundings, renewals or extensions thereof; provided 
that (i) the amount of such Indebtedness is not increased at the time of such
refinancing, refunding, renewal or extension except by an amount equal to
accrued interest (but only such accrued interest scheduled to accrue and remain
unpaid by its terms in accordance with the related debt instrument as in effect
on the Closing Date) and a reasonable premium or other reasonable amount paid,
and fees and expenses reasonably incurred, in connection with such refinancing,
refunding, renewal or extension and by an amount equal to any existing
commitments unutilized thereunder and (ii) the terms relating to principal
amount, amortization, maturity, collateral (if any) and subordination (if any),
and other material terms taken as a whole, of any such refinancing, refunding,
renewing or extending Indebtedness, and of any agreement entered into and of
any instrument issued in connection therewith, are no less favorable in any
material respect to the Borrower on a consolidated basis, such Person or the Lenders
than the terms of any agreement or instrument governing the Indebtedness being
refinanced, refunded, renewed or extended and the interest rate applicable to
any such refinancing, refunding, renewing or extending Indebtedness does not
exceed the then applicable market interest rate;

(c)                
loans to Subsidiaries made in
accordance with the terms of Section 7.02(b) and (c); 

(d)                
so long as no Default exists
before and after giving effect to the incurrence of any such Indebtedness,
Indebtedness of any Subsidiary up to a maximum amount outstanding at any one
time of $300,000,000; provided  that, notwithstanding the foregoing, in
no event shall the sum of (i) the amount of outstanding Indebtedness of the
Subsidiaries permitted by this subsection (d) (whether secured or unsecured),
plus (ii) the amount of outstanding Indebtedness of the Borrower on a
consolidated basis secured by Liens permitted by Section 7.01(j),
plus (iii) without duplication, the amount of outstanding Indebtedness of the
Subsidiaries of the Parent Company (other than the Borrower) permitted by
Section 7.03(e) of the Parent Credit Agreement, exceed in the aggregate at any
time, $300,000,000; and

 

CREDIT AGREEMENT – Page 62 

 

 

 

(e)                
so long as there exists no Default
at the time of its incurrence, Indebtedness owed to governmental entities and
authorized pursuant to and incurred under the American Recovery and Reinvestment
Act of 2009 or other law for broadband infrastructure in any area of the United
States, particularly in areas without sufficient access to high speed broadband
service to facilitate economic development (collectively, a "Government
Program"); provided  that, notwithstanding the foregoing, in
no event shall the aggregate amount of Indebtedness incurred as permitted by
this subsection (e) together with (I) the aggregate amount of any
programs permitted by Section 7.11 (without duplication) plus (II) the
aggregate amount of Indebtedness or other funding (other than grants) incurred
by any of the Parent Affiliated Companies (other than the Parent Company) in
connection with a Government Program exceed in the aggregate at any time
$500,000,000.

7.04           
Fundamental Changes.  Merge, dissolve, liquidate, consolidate with or
into another Person, or Dispose of (whether in one transaction or in a series
of transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) to or in favor of any Person, except that, so long as no
Default exists or would result therefrom:

(a)                
any Subsidiary may merge,
amalgamate or consolidate with (i) the Borrower, provided  that the
Borrower shall be the continuing or surviving Person, or (ii) any one or
more other Subsidiaries, provided  that when any wholly-owned Subsidiary
is merging with another Subsidiary, the wholly-owned Subsidiary shall be the
continuing or surviving Person; 

(b)                
any Subsidiary may Dispose of all
or substantially all of its assets (upon voluntary liquidation or otherwise) to
the Borrower or to another Subsidiary; provided  that if the transferor
in such a transaction is a wholly-owned Subsidiary, then the transferee must
either be the Borrower or a wholly-owned Subsidiary; 

(c)                
any Subsidiary may liquidate or
dissolve or change its legal form if the Borrower determines in good faith that
such action is in the interest of the Borrower and its Subsidiaries;

(d)                
any consolidation of the Borrower
with or merger of the Borrower into any other Person or Persons (whether or not
affiliated with the Borrower), or successive consolidations or mergers to which
the Borrower or its successor or successors shall be a party or parties, provided,
however, that, the Borrower hereby consents and agrees that, upon any such
consolidation or merger, the due and punctual payment of the principal of and
interest on all of the Loans and the due and punctual performance and
observance of all of the covenants, conditions and other obligations of this
Agreement and the Notes to be performed and observed by the Borrower, shall be
expressly assumed in an agreement satisfactory in form and substance to the
Administrative Agent and the Lenders, executed and delivered to the
Administrative Agent by the Person formed by such consolidation or merger,
provided, further, that the Person formed by such consolidation or merger shall
be a Person organized and existing under the laws of the United States, any
state thereof or the District of Columbia, and provided, further, that
immediately before and after giving effect to any such transaction (and
treating any Consolidated Funded Indebtedness

 

CREDIT AGREEMENT – Page 63 

 

 

 

or Sale and Leaseback Transaction which becomes an obligation of the
resulting or surviving Person as a result of such transaction as having been
incurred or entered into by such Person at the time of such transaction), no
Default shall exist.  Unless the conditions prescribed above in this Section
7.04(d) are satisfied, no such consolidation or merger shall be permitted; 

(e)                
the Borrower or any Subsidiary may
merge with any other Person in order to effect an Investment expressly
permitted pursuant to Sections 7.02(e) and (f); and

(f)                 
with respect to any Subsidiary,
(i) a merger, dissolution, liquidation, consolidation or Disposition, the
purpose of which is to effect a Disposition expressly permitted pursuant to Section
7.05(c)(i), and (ii) Dispositions made in accordance with the terms of Section
7.05(c)(ii), or any of Sections 7.05(e), (f)  or (g). 

7.05           
Dispositions.  Make any Disposition or enter into any agreement to
make any Disposition, except:

(a)                
Dispositions of obsolete or worn
out property, whether now owned or hereafter acquired, in the ordinary course
of business, and Dispositions of property deemed to be no longer useful in the
conduct of the business of the Borrower or any of its Subsidiaries in the
ordinary course of business and as determined in the Borrower's commercially
reasonable judgment;

(b)                
Dispositions of inventory and
allowing any registrations or any applications for registration of any
intellectual property to lapse or go abandoned, in each case, in the ordinary
course of business;

(c)                
Dispositions of (i) any property
of any Subsidiary to the Borrower or to a wholly-owned Subsidiary; and (ii) any
property of the Borrower or a wholly-owned Subsidiary to a Subsidiary or
Special Entity, provided that, if there exists any Event of Default at the time
of any such Disposition or as a result of giving effect to any such
Disposition, such Disposition under subsection (ii) hereof must be sales of
property on fair and reasonable terms, in the ordinary course of business and
consistent with past practices;

(d)                
to the extent such transactions
constitute Dispositions, the transactions expressly permitted by Sections
7.02(e), 7.04(a), (b), (c)  and (d)  and 7.06; 

(e)                
in addition to Dispositions
permitted by subsections (a), (b), (c) and (d) preceding, so long as (i) no
Default exists at the time the contractual obligation to make such Dispositions
is entered into by the Borrower or its Subsidiaries, (ii) the Borrower is in
pro-forma compliance with each of the covenants in Section 7.10 after
giving effect to any such proposed Disposition, (iii) in each case such
Disposition shall be for aggregate fair value (which shall be the price at
which the Board of Directors of the relevant Person shall have agreed to sell
such assets in an arm's length transaction to an independent third party buyer
which is not an Affiliate) and (iv) such Disposition (or series of
Dispositions) shall not be of all or substantially all of the assets of the
Borrower, the Borrower and its Subsidiaries may make any Disposition;

 

CREDIT AGREEMENT – Page 64 

 

 

 

(f)                 
in addition to Dispositions
permitted by subsections (a), (b), (c), (d) and  (e)  preceding, so long as (i)
no Event of Default under Section 8.01(a) exists before and immediately
after giving effect to any such Dispositions, (ii) the Outstanding Amounts of
all Committed Loans on any date of any Disposition are not more than zero and
(iii) such Disposition is for fair value (which shall be the price at which the
Board of Directors of the relevant Person shall have agreed to sell such assets
in an arm's length transaction to an independent third party buyer which is not
an Affiliate), the Borrower and its Subsidiaries may make any Disposition
(except Dispositions of all or substantially all of the assets of the
Borrower);

(g)                
in addition to Dispositions
permitted by subsections (a), (b), (c), (d), (e) and (f) preceding, so long as
(i) 100% of the Net Proceeds of each such Disposition are used by the Borrower
immediately upon receipt thereof to prepay the Outstanding Amounts of all
Committed Loans, and (ii) such Disposition is for fair value (which shall be
the price at which the Board of Directors of the relevant Person shall have
agreed to sell such assets in an arm's length transaction to an independent
third party buyer which is not an Affiliate), the Borrower and its Subsidiaries
may make any Disposition (except Dispositions of all or substantially all of
the assets of the Borrower); and

(h)                
in addition to Dispositions
permitted by subsections (a), (b), (c), (d), (e), (f) and (g) preceding,
Dispositions consisting of the sale of Cash Equivalents for cash.

provided, however, that in each case of subsections (a)
through (g) above and notwithstanding anything in this Section 7.05 or
otherwise herein or in any Loan Documents, each such Disposition shall be, in
Borrower's commercially reasonable judgment, for fair market value.

7.06           
Restricted Payments.  Declare or make, directly or indirectly, any
Restricted Payment, or incur any obligation (contingent or otherwise) to do so,
except:

(a)                
each Subsidiary may make
Restricted Payments to the Borrower and any other Person that owns an Equity
Interest in such Subsidiary, ratably according to their respective holdings of
the type of Equity Interest in respect of which such Restricted Payment is
being made;

(b)                
the Borrower and each Subsidiary
may declare and make dividend payments or other distributions payable solely in
the common stock or other common Equity Interests of such Person;

(c)                
the Borrower and each Subsidiary
may purchase, redeem or otherwise acquire Equity Interests issued by it with
the proceeds received from the substantially concurrent issue of new shares of
its common stock or other common Equity Interests;

(d)                
repurchases in the ordinary course
of business and consistent with past practices of Equity Interests in the
Borrower or any Subsidiary of the Borrower deemed to occur upon exercise of
stock options or warrants if such Equity Interests represent a portion of the
exercise price of or tax withholding obligation with respect to such options or
warrants;

 

CREDIT AGREEMENT – Page 65 

 

 

 

(e)                
the Borrower may make Restricted
Payments in the ordinary course of business and consistent with past practices
pursuant to and in accordance with stock option plans or other benefit plans
for management or employees of the Borrower and its Subsidiaries (i) in
effect as of the Closing Date, or (ii) given in renewal or extension of
previously existing stock option plans or other benefit plans, such renewals
and extensions to be on similar terms to the existing plans, or (iii) granted
in the ordinary course of business consistent with past practices and on
similar terms as those stock option plans or other benefit plans in existence
on the Closing Date;

(f)                 
the Borrower may declare and make
scheduled quarterly dividends approved by its board of directors provided that
such no such scheduled quarterly dividend shall exceed the amount of the
scheduled quarterly dividend permitted to be declared and made by the Parent
Company for such quarter under the Parent Credit Agreement;

(g)                
in addition to Restricted Payments
permitted by subsections (a), (b), (c), (d), (e) and (f) preceding, so long as
(i) no Event of Default exists before and immediately after giving effect to
any such Restricted Payment (provided  that, notwithstanding the
foregoing, solely in the case of dividends, such requirement shall only apply
to the declaration of any such dividend and not to the payment of any such
dividend), and (ii) the Borrower is in pro-forma compliance with each of
the covenants in Section 7.10 after giving pro forma effect to any such
proposed Restricted Payment on the date of payment or, in the case of
dividends, the declaration thereof, the Borrower and its Subsidiaries may make
any Restricted Payment at any time after such payment or, in the case of
dividends, the declaration thereof; and

(h)                
in addition to Restricted Payments
permitted by subsections (a), (b), (c), (d), (e), (f) and (g) preceding, so
long as (i) no Event of Default under Section 8.01(a) exists before and
immediately after giving effect to any such Restricted Payment and (ii) Outstanding
Amounts of all Committed Loans on any date of any Restricted Payment are not
more than zero, the Borrower and its Subsidiaries may make any Restricted
Payment.

7.07           
Transactions with Affiliates
and Subsidiaries. 

(a)                
Except as disclosed on Schedule
7.07, enter into, or permit to exist, any transaction of any kind with any
Affiliate of the Borrower (excluding Subsidiaries, the Parent Company,
Subsidiaries of the Parent Company or any Special Entity), whether or not in
the ordinary course of business, other than on fair and reasonable terms
substantially as favorable to the Borrower or such Subsidiary as would be
obtainable by the Borrower or such Subsidiary at the time in a comparable arm's
length transaction with a Person other than an Affiliate, all as determined by
the Borrower in its commercially reasonably judgment; or 

(b)                
Enter into, or permit to exist,
any transaction of any kind with (i) the Parent Company, (ii) any
Subsidiary of the Parent Company, (iii) any Subsidiary that is not a
wholly-owned Subsidiary or (iv) any Special Entity, in each case other
than on fair and reasonable terms in the ordinary course of business consistent
with past practices.

 

CREDIT AGREEMENT – Page 66 

 

 

 

7.08           
Burdensome Agreements.  Enter into any Contractual Obligation (other than
this Agreement or any other Loan Document) that causes any Material Subsidiary
to become or remain subject to any restriction which could reasonably be
expected to impair the Borrower's ability to repay in full the Obligations,
including without limitation, any restriction which would prohibit the
distribution by any Material Subsidiary to the Borrower of proceeds from any
direct or indirect Disposition of any business or property.

7.09           
Use of Proceeds.  Use the proceeds of any Committed Loan whether
directly or indirectly, and whether immediately, incidentally or ultimately, to
purchase or carry margin stock (within the meaning of Regulation U of the FRB)
or to extend credit to others for the purpose of purchasing or carrying margin
stock or to refund indebtedness originally incurred for such purpose.

7.10           
Financial Covenants. 

(a)                
Consolidated Interest Coverage
Ratio.  Permit the Consolidated
Interest Coverage Ratio as of the end of any fiscal quarter of the Borrower to be
less than 3.00 to 1.00.

(b)                
Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio as of the
end of any fiscal quarter of the Borrower to be greater than the ratios
indicated for each period specified below:

	
  Period

  	
  Ratios

  
	
  From the Closing Date through December 31, 2015 

  	
  3.75 to 1.00

  
	
  From January 1, 2016 through June 30, 2016

  	
  3.50 to 1.00

  
	
  From July 1, 2016 through December 31, 2016

  	
  3.25 to 1.00

  
	
  From January 1, 2017 and thereafter

  	
  3.00 to 1.00

  

 

7.11           
Governmental Programs.  Incur or obtain any loans, advances or other
similar funding (other than grants) under any Government Program, provided 
that, so long as either (i) there exists no Event of Default at the time
of its incurrence, or (ii) (A) there exists no Event of Default under Section 8.01(a) 
before and immediately after giving effect to any such incurrence or receipt of
such grants, loans, advances or other funding, and (B) the Outstanding
Amounts of all Committed Loans on any date of any such incurrence or receipt of
such grants, loans, advances or other funding are not more than zero, the
Borrower may incur or obtain any such grants, loans, advances or other funding
in an amount, when combined with the sum of (I) all other Indebtedness incurred
under Section 7.03(h) (without duplication) plus (II) all other
Indebtedness or other funding (other than grants) to any Parent Affiliated
Companies (other than

 

CREDIT AGREEMENT – Page 67 

 

 

 

the Parent Company) in connection with any Government Program, that is
not in excess of $500,000,000.

7.12           
Anti-Terrorism, OFAC and USA
Patriot Act.  Knowingly, directly or
indirectly, (a) conduct any business or engage in making or receiving any
contribution of funds, goods or services to or for the benefit of any Person
subject to Executive Order No 13,224, 66 Fed. Reg. 49,079 (2001), issued by the
President of the United States (Executive Order Blocking Property and
Prohibiting Transactions Persons Who Commit, Threaten to Commit or Support
Terrorism) (the “Executive Order”), (b) deal in, or otherwise
engage in any transaction relating to, any property or interests in property
blocked pursuant to the Executive Order or any other Anti-Terrorism Law, (c)
engage in or conspire to engage in any transaction that evades or avoids, or
has the purpose of evading or avoiding, or attempts to violate, any of the
prohibitions set forth in any Anti-Terrorism Law (and the Borrower shall
deliver to the Administrative Agent any certification or other evidence
requested from time to time by the Administrative Agent in its reasonable
discretion, confirming Borrower’s compliance with this Section 7.12), or
(d) violate in any material respect the laws, regulations and executive orders
referred to in Section 5.18. 

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

8.01           
Events of Default.  Any of the following shall constitute an Event of
Default:

(a)                
Non-Payment.  The Borrower fails to pay (i) when and as required
to be paid herein, any amount of principal of any Loan, or (ii) within three
(3) Business Days after the same becomes due, any interest on any Loan, or any
fee due hereunder, or any other amount payable hereunder or under any other
Loan Document; or

(b)                
Specific Covenants.  The Borrower fails to perform or observe any term,
covenant or agreement contained in any of Section 6.03, 6.05(a)  (solely
with respect to the Borrower), 6.10, or 6.11  or Article VII;
or

(c)                
Other Defaults.  The Borrower fails to perform or observe any other
covenant or agreement (not specified in subsection (a) or (b) above) contained
in any Loan Document on its part to be performed or observed and such failure
continues for 30 days after the earlier of (i) the date a Responsible Officer
of the Borrower has knowledge of such failure and (ii) the delivery date of
written notice thereof to the Borrower from the Administrative Agent; or

(d)                
Representations and Warranties.  Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of the Borrower herein,
in any other Loan Document, or in any document required to be delivered in
connection herewith or therewith shall not be true and correct in any material
respect when made or deemed made (or, to the extent any such representation,
warranty, certification or statement of fact is qualified as to
"materiality" or "Material Adverse Effect", such
representation, warranty, certification or statement of fact shall not be true
and correct in all respects); or

 

CREDIT AGREEMENT – Page 68 

 

 

 

(e)                
Cross-Default.  (i) The Borrower or any Subsidiary (A) fails to
make any payment when due beyond the applicable grace period with respect
thereto (whether by scheduled maturity, required prepayment, acceleration,
demand, or otherwise) in respect of any Indebtedness (other than Indebtedness
hereunder and Indebtedness under Swap Contracts) having an outstanding
aggregate principal amount (including undrawn committed or available amounts
and including amounts owing to all creditors under any combined or syndicated
credit arrangement) of more than the Threshold Amount, or (B) fails to
observe or perform any other agreement or condition relating to any such
Indebtedness (other than Indebtedness hereunder and Indebtedness under Swap
Contracts) or contained in any instrument or agreement evidencing, securing or
relating thereto, or any other event occurs, the effect of which default or
other event is to cause, or to permit the holder or holders of such
Indebtedness or the beneficiary or beneficiaries of any Guarantee (or a trustee
or agent on behalf of such holder or holders or beneficiary or beneficiaries)
to cause, with the giving of notice if required, such Indebtedness to be
demanded or to become due or to be repurchased, prepaid, defeased or redeemed
(automatically or otherwise), or an involuntary offer to repurchase, prepay,
defease or redeem such Indebtedness to be made, prior to its stated maturity,
or such Guarantee to become payable or cash collateral in respect thereof to be
demanded; or (ii) there occurs under any Swap Contract an Early Termination
Date (as defined in such Swap Contract) resulting from (A) any event of default
under such Swap Contract as to which the Borrower or any Subsidiary is the
Defaulting Party (as defined in such Swap Contract) or (B) any Termination
Event (as so defined) under such Swap Contract as to which the Borrower or any
Subsidiary is an Affected Party (as so defined) and, in either event, the Swap
Termination Value owed by the Borrower or such Subsidiary as a result thereof
is greater than the Threshold Amount (unless such Swap Contract is in
connection with a Monetization Transaction for which the Swap Termination Value
may be satisfied by the delivery of the underlying Specified Equity Interests
related to such Monetization Transaction); or

(f)                 
Insolvency Proceedings, Etc.  The Borrower or any of its Material Subsidiaries
institutes or consents to the institution of any proceeding under any Debtor
Relief Law, or makes an assignment for the benefit of creditors; or applies for
or consents to the appointment of any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer for it or for all or
any material part of its property; or any receiver, trustee, custodian,
conservator, liquidator, rehabilitator or similar officer is appointed without
the application or consent of such Person and the appointment continues
undischarged or unstayed for 60 calendar days; or any proceeding under any
Debtor Relief Law relating to any such Person or to all or any material part of
its property is instituted without the consent of such Person and continues
undismissed or unstayed for 60 calendar days, or an order for relief is entered
in any such proceeding; or

(g)                
Inability to Pay Debts;
Attachment.  (i) The Borrower or any
Material Subsidiary becomes unable or admits in writing its inability or fails
generally to pay its debts as they become due, or (ii) any writ or warrant of
attachment or execution or similar process is issued or levied against all or
any material part of the property of any such Person and is not released,
vacated or fully bonded within 30 days after its issue or levy; or

 

CREDIT AGREEMENT – Page 69 

 

 

 

(h)                
Judgments.  There is entered against the Borrower or any
Subsidiary (i) one or more final judgments or orders for the payment of
money in an aggregate amount (as to all such judgments or orders) exceeding the
Threshold Amount (to the extent not covered by independent third-party
insurance as to which the insurer has been notified of such judgment or order
and has not denied coverage), or (ii) any one or more non-monetary final
judgments that have, or could reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect and, in either case, (A)
enforcement proceedings are commenced by any creditor upon such judgment or
order, or (B) there is a period of 60 consecutive days during which a stay
of enforcement of such judgment, by reason of a pending appeal or otherwise, is
not in effect; or

(i)                  
ERISA.  (i) An ERISA Event occurs with respect to a Pension
Plan or Multiemployer Plan which has resulted or could reasonably be expected
to result in liability of the Borrower under Title IV of ERISA to the
Pension Plan, Multiemployer Plan or the PBGC in an aggregate amount in excess
of the Threshold Amount, or (ii) the Borrower or any ERISA Affiliate fails to
pay when due, after the expiration of any applicable grace period, any
installment payment with respect to its withdrawal liability under Section 4201
of ERISA under a Multiemployer Plan in an aggregate amount in excess of the
Threshold Amount; or

(j)                 
Invalidity of Loan Documents.  Any material provision of any Loan Document, at any
time after its execution and delivery and for any reason other than as
expressly permitted hereunder or thereunder or satisfaction in full of all the
Obligations and termination of the Aggregate Commitments, ceases to be in full
force and effect; or the Borrower or any Affiliate contests in any manner the
validity or enforceability of any provision of any Loan Document; or the
Borrower denies that it has any or further liability or obligation under any
Loan Document (other than as a result of repayment in full of the Obligations
and termination of the Aggregate Commitments), or purports in writing to
revoke, terminate or rescind any provision of any Loan Document; or

(k)                
Change of Control.  There occurs any Change of Control.

8.02           
Remedies Upon Event of Default.  If any Event of Default occurs and is continuing,
the Administrative Agent shall, at the request of, or may, with the consent of,
the Required Lenders, take any or all of the following actions:

(a)                
declare the commitment of each
Lender to make Loans to be terminated, whereupon such commitments and
obligation shall be terminated;

(b)                
declare the unpaid principal
amount of all outstanding Loans, all interest accrued and unpaid thereon, and
all other amounts owing or payable hereunder or under any other Loan Document
to be immediately due and payable, without presentment, demand, protest or
other notice of any kind, all of which are hereby expressly waived by the
Borrower; and

(c)                
exercise on behalf of itself and
the Lenders all rights and remedies available to it and the Lenders under the
Loan Documents;

CREDIT AGREEMENT – Page 70 

 

 

 

provided, however,
that upon the occurrence of an actual or deemed entry of an order for relief
with respect to the Borrower under the Bankruptcy Code of the United States,
the obligation of each Lender to make Loans shall automatically terminate and
the unpaid principal amount of all outstanding Loans and all interest and other
amounts as aforesaid shall automatically become due and payable, in each case
without further act of the Administrative Agent or any Lender.

8.03           
Application of Funds.  After the exercise of remedies provided for in Section
8.02 (or after the Loans have automatically become immediately due and
payable as set forth in the proviso to Section 8.02), any amounts
received on account of the Obligations shall be applied by the Administrative
Agent in the following order (to the fullest extent permitted by applicable
Laws):

First, to payment of that portion of the Obligations
constituting fees, indemnities, expenses and other amounts (excluding principal
and interest but including fees, charges and disbursements of counsel to the
Administrative Agent to the extent the Borrower is obligated to reimburse such
amounts in accordance with the Loan Documents and amounts payable under Article
III) payable to the Administrative Agent in its capacity as such;

Second, to payment of that portion of the Obligations
constituting fees, indemnities and other amounts (other than principal and
interest) payable to the Lenders (including fees, charges and disbursements of
counsel to the respective Lenders to the extent the Borrower is obligated to
reimburse such amounts in accordance with the Loan Documents, and amounts
payable under Article III), ratably among them in proportion to the
respective amounts described in this subsection Second  payable to them;

Third, to payment of that portion of the Obligations
constituting accrued and unpaid interest on the Loans and other Obligations,
ratably among the Lenders in proportion to the respective amounts described in
this subsection Third  payable to them;

Fourth, to payment of that portion of the Obligations
constituting unpaid principal of the Loans, ratably among the Lenders in
proportion to the respective amounts described in this subsection Fourth 
held by them; and

Last, the balance, if any, after all of the Obligations
have been indefeasibly paid in full, to the Borrower or as otherwise required
by Law.

ARTICLE IX.

ADMINISTRATIVE AGENT

9.01           
Appointment and Authority.  Each of the Lenders hereby irrevocably appoints
CoBank to act on its behalf as the Administrative Agent hereunder and under the
other Loan Documents and authorizes the Administrative Agent to take such
actions on its behalf and to exercise such powers as are delegated to the
Administrative Agent by the terms hereof or thereof, together with such actions
and powers as are reasonably incidental thereto.  The provisions of this
Article are solely for the benefit of the Administrative Agent and the Lenders,
and the Borrower shall not have rights as a third party beneficiary of any of
such provisions.  It is understood and agreed that the use of the term
"agent" herein or in any other Loan Documents

 

CREDIT AGREEMENT – Page 71 

 

 

 

(or any other similar term) with reference to the Administrative Agent
is not intended to connote any fiduciary or other implied (or express)
obligations arising under agency doctrine of any applicable Law. Instead such
term is used as a matter of market custom, and is intended to create or reflect
only an administrative relationship between contracting parties.

9.02           
Rights as a Lender.  The Person serving as the Administrative 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
Administrative Agent and the term "Lender" or "Lenders"
shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in
its individual capacity.  Such Person and its Affiliates may accept deposits
from, lend money to, own securities of, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with
the Borrower or any Subsidiary or other Affiliate thereof as if such Person
were not the Administrative Agent hereunder and without any duty to account
therefor to the Lenders.

9.03           
Exculpatory Provisions.  The Administrative Agent shall not have any duties
or obligations except those expressly set forth herein and in the other Loan
Documents, and its duties shall be administrative in nature.  Without limiting
the generality of the foregoing, the Administrative Agent:

(a)                
shall not be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred
and is continuing;

(b)                
shall not have any duty to take
any discretionary action or exercise any discretionary powers, except
discretionary rights and powers expressly contemplated hereby or by the other
Loan Documents that the Administrative Agent is required to exercise as
directed in writing by the Required Lenders (or such other number or percentage
of the Lenders as shall be expressly provided for herein or in the other Loan
Documents), provided  that the Administrative Agent shall not be required
to take any action that, in its opinion or the opinion of its counsel, may
expose the Administrative Agent to liability or that is contrary to any Loan
Document or applicable law, including for the avoidance of doubt any action
that may be in violation of the automatic stay under any Debtor Relief Law or
that may effect a forfeiture, modification or termination of property of a
Defaulting Lender in violation of any Debtor Relief Law; and

(c)                
shall not, except as expressly set
forth herein and in the other Loan Documents, have any duty to disclose, and
shall not be liable for the failure to disclose, any information relating to
the Borrower or any of its Affiliates that is communicated to or obtained by
the Person serving as the Administrative Agent or any of its Affiliates in any
capacity.

The Administrative Agent
shall not be liable for any action taken or not taken by it (i) with the
consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary, or as the Administrative Agent
shall believe in good faith shall be necessary, under the circumstances as
provided in Sections 10.01 and 8.02) or (ii) in the absence of
its own gross negligence, bad faith, fraud or willful misconduct.  The
Administrative Agent shall be deemed not to have knowledge of any Default
unless and until

CREDIT AGREEMENT – Page 72 

 

 

 

notice describing such Default is given in writing to
the Administrative Agent by the Borrower or a Lender.

The Administrative 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 this
Agreement or any other Loan Document, (ii) the contents of any certificate,
report or other document delivered hereunder or thereunder or in connection
herewith or therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein or therein
or the occurrence of any Default, (iv) the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document or (v) the satisfaction of any
condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the
Administrative Agent.

9.04           
Reliance by Administrative
Agent.  The Administrative 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 (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine
and to have been signed, sent or otherwise authenticated by the proper Person. 
The Administrative Agent also may rely upon any statement made to it orally or
by telephone and believed by it to have been made by the proper Person, and
shall not incur any liability for relying thereon.  In determining compliance
with any condition hereunder to the making of a Loan that by its terms must be
fulfilled to the satisfaction of a Lender, the Administrative Agent may presume
that such condition is satisfactory to such Lender unless the Administrative
Agent shall have received notice to the contrary from such Lender prior to the
making of such Loan.  The Administrative 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.

9.05           
Delegation of Duties.  The Administrative Agent may perform any and all of
its duties and exercise its rights and powers hereunder or under any other Loan
Document by or through any one or more sub‐agents appointed by the
Administrative Agent.  The Administrative Agent and any such sub‐agent
may perform any and all of its duties and exercise its rights and powers by or
through their respective Related Parties.  The exculpatory provisions of this
Article shall apply to any such sub‐agent and to the Related Parties of
the Administrative 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 Administrative Agent.

9.06           
Resignation of Administrative
Agent.  The Administrative Agent may
at any time give notice of its resignation to the Lenders and the Borrower. 
Upon receipt of any such notice of resignation, the Required Lenders shall have
the right, and, so long as no Event of Default has occurred and is continuing,
with the approval of the Borrower, to appoint a successor, which shall be a
bank with an office in the United States, or an Affiliate of any such bank with
an office in the United States.  If no such successor shall have been so
appointed by the Required Lenders (with, if applicable, the consent of the
Borrower) and shall have accepted such appointment within 30 days after
the retiring Administrative Agent gives notice of its resignation, then the
retiring Administrative Agent may on behalf of the Lenders, appoint a

 

CREDIT AGREEMENT – Page 73 

 

 

 

successor Administrative Agent meeting the qualifications set forth
above; provided  that if the Administrative Agent shall notify the
Borrower and the Lenders that no qualifying Person has accepted such
appointment, then such resignation shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder and under the
other Loan Documents (except that in the case of any collateral security held
by the Administrative Agent on behalf of the Lenders under any of the Loan
Documents, the retiring Administrative Agent shall continue to hold such
collateral security until such time as a successor Administrative Agent is
appointed) and (2) except for any indemnity payments or other amounts then
owed to the retiring Administrative Agent, all payments, communications and
determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender directly, until such time as the
Required Lenders appoint (with, if applicable, the consent of the Borrower) a successor
Administrative Agent as provided for above in this Section 9.06.  Upon
the acceptance of a successor's appointment as Administrative Agent hereunder,
such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring (or retired) Administrative
Agent, and the retiring Administrative Agent (other than as provided in Section
3.01(g) and other than any rights to indemnity payments or other amounts
owed to the retiring Administrative Agent as of the effective date of such
resignation) shall be discharged from all of its duties and obligations
hereunder or under the other Loan Documents (if not already discharged
therefrom as provided above in this Section 9.06).  The fees payable by
the Borrower to a successor Administrative Agent shall be the same as those
payable to its predecessor unless otherwise agreed between the Borrower and
such successor.  After the retiring Administrative Agent's resignation
hereunder and under the other Loan Documents, the provisions of this Article
and Section 10.04  shall continue in effect for the benefit of such
retiring Administrative 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 the retiring Administrative Agent was acting as Administrative
Agent.

9.07           
Non-Reliance on Administrative
Agent and Other Lenders.  Each Lender
acknowledges that it has, independently and without reliance upon the
Administrative Agent or any other Lender or any of their Related Parties 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
Administrative Agent or any other Lender or any of their Related Parties 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 any related
agreement or any document furnished hereunder or thereunder.

9.08           
No Other Duties, Etc.  Anything herein to the contrary notwithstanding,
CoBank, as the Lead Arranger and Sole Bookrunner have no powers, duties or
responsibilities under this Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as the Administrative Agent or a Lender
hereunder.

9.09           
Administrative Agent May File
Proofs of Claim.  In case of the
pendency of any proceeding under any Debtor Relief Law or any other judicial
proceeding relative to the Borrower, the Administrative Agent (irrespective of
whether the principal of any Loan shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of

 

CREDIT AGREEMENT – Page 74 

 

 

 

whether the Administrative Agent shall have made any demand on the
Borrower) shall be (to the fullest extent permitted by applicable Laws)
entitled and empowered, by intervention in such proceeding or otherwise:

(a)                
to file and prove a claim for the whole
amount of the principal and interest owing and unpaid in respect of the Loans
and all other Obligations that are owing and unpaid and to file such other
documents as may be necessary or advisable in order to have the claims of the
Lenders and the Administrative Agent (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Lenders and the
Administrative Agent and their respective agents and counsel and all other
amounts due the Lenders and the Administrative Agent under Sections 2.07
and 10.04) allowed in such judicial proceeding; and

(b)                
to collect and receive any monies
or other property payable or deliverable on any such claims and to distribute
the same;

and any custodian,
receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and to make
such payments to the Administrative Agent and, in the event that the
Administrative Agent shall consent to the making of such payments directly to
the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the
Administrative Agent and its agents and counsel, and any other amounts due the
Administrative Agent under Sections 2.07 and 10.04. 

Nothing contained herein
shall be deemed to authorize the Administrative Agent to authorize or consent
to or accept or adopt on behalf of any Lender any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights
of any Lender to authorize the Administrative Agent to vote in respect of the
claim of any Lender in any such proceeding.

ARTICLE X.

MISCELLANEOUS

10.01        
Amendments, Etc.  Except as otherwise set forth in this Agreement, no
amendment or waiver of any provision of this Agreement or any other Loan
Document, and no consent to any departure by the Borrower therefrom, shall be
effective unless in writing signed by the Required Lenders and the Borrower,
and acknowledged by the Administrative Agent, and each such waiver or consent
shall be effective only in the specific instance and for the specific purpose
for which given; provided, however, that no such amendment,
waiver or consent shall:

(a)                
extend or increase the Commitment
of any Lender (or reinstate any Commitment terminated pursuant to Section
8.02) without the written consent of such Lender (it being understood that
a waiver of any condition precedent in Sections 4.01  and 4.02 
or of any Default, mandatory prepayment or mandatory reduction of the Aggregate
Commitments shall not constitute an extension or increase of any Commitment of
any Lender);

 

CREDIT AGREEMENT – Page 75 

 

 

 

(b)                
postpone any date fixed by this
Agreement or any other Loan Document for any payment (excluding mandatory
prepayments) of principal, interest, fees or other amounts due to the Lenders
(or any of them) hereunder or under any other Loan Document without the written
consent of each Lender directly affected thereby;

(c)                
reduce the principal of, or the
rate of interest specified herein on, any Loan or (subject to subsection (iv)
of the second proviso to this Section 10.01) any fees or other
amounts payable hereunder or under any other Loan Document, without the written
consent of each Lender directly affected thereby; provided, however,
that only the consent of the Required Lenders shall be necessary to amend the
definition of "Default Rate" or to waive any obligation of the
Borrower to pay interest at the Default Rate;

(d)                
change Section 2.11 or Section
8.03 in a manner that would alter the pro rata sharing of payments required
thereby without the written consent of each Lender; or

(e)                
change any provision of this
Section or the definition of "Required Lenders" or any other
provision hereof specifying the number or percentage of Lenders required to
amend, waive or otherwise modify any rights hereunder or make any determination
or grant any consent hereunder without the written consent of each Lender;

and, provided  further,
that (i) no amendment, waiver or consent shall, unless in writing and signed by
the Administrative Agent in addition to the Lenders required above, affect the
rights or duties of the Administrative Agent under this Agreement or any other
Loan Document; and (ii) the Fee Letter may be amended, or rights or privileges
thereunder waived, in a writing executed only by the parties thereto. 
Notwithstanding anything to the contrary herein, no Defaulting Lender shall
have any right to approve or disapprove any amendment, waiver or consent hereunder,
except that the Commitment of such Lender may not be increased or extended
without the consent of such Lender (it being understood that any Commitment or
Loans held or deemed held by any Defaulting Lender shall be excluded for a vote
of the Lenders hereunder requiring any consent of the Lenders, except
increasing such Defaulting Lender's Commitment or extending date fixed
hereunder for payment).  

10.02        
Notices; Effectiveness;
Electronic Communication. 

(a)                
Notices Generally.  Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), 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
facsimile or electronic mail as follows, and all notices and other
communications expressly permitted hereunder to be given by telephone shall be
made to the applicable telephone number, as follows:

                                                                              
(i)           
if to the Borrower or the
Administrative Agent, to the address, facsimile number, electronic mail
address or telephone number specified for such Person on Schedule 10.02
or to such other address, facsimile number, electronic mail address or
telephone number as shall be designated by such party in a notice to the other
parties; and

 

CREDIT AGREEMENT – Page 76 

 

 

 

                                                                            
(ii)           
if to any other Lender, to the
address, facsimile number, electronic mail address or telephone number
specified in its Administrative Questionnaire or to such other address,
facsimile number, electronic mail address or telephone number as shall be
designated by such party in a notice to the Borrower and the Administrative
Agent.

Notices and other
communications sent by hand or overnight courier service, or mailed by
certified or registered mail, shall be deemed to have been given when received;
notices and other communications sent by facsimile shall be deemed to
have been given when sent (except that, if not given during normal business
hours for the recipient, shall be deemed to have been given at the opening of
business on the next business day for the recipient).  Notices and other
communications delivered through electronic communications to the extent
provided in subsection (b) below, shall be effective as provided in such
subsection (b).

(b)                
Electronic Communications.  Notices and other communications to the Lenders
hereunder may be delivered or furnished by electronic communication (including
e‐mail and Internet or intranet websites) pursuant to procedures mutually
agreed to by the Borrower and the Administrative Agent, provided  that
the foregoing shall not apply to notices to any Lender pursuant to Article
II if such Lender has notified the Administrative Agent that it is
incapable of receiving notices under such Article by electronic communication. 
The Administrative Agent or the Borrower may each, 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.

Unless the Administrative
Agent otherwise prescribes, (i) notices and other communications sent to
an e-mail address shall be deemed received upon the sender's receipt of an
acknowledgement from the intended recipient (such as by the "return
receipt requested" function, as available, return e-mail or other written
acknowledgement), provided  that if such notice or other communication is
not sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient, and (ii) notices or
communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its e-mail
address as described in the foregoing subsection (i) of notification that
such notice or communication is available and identifying the website address
therefor; provided  that if such notice or other communication is not
sent during the normal business hours of the recipient, such notice or
communication shall be deemed to have been sent at the opening of business on
the next business day for the recipient.

(c)                
The Platform.  THE PLATFORM IS PROVIDED "AS IS" AND
"AS AVAILABLE."  THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT
THE ACCURACY OR COMPLETENESS OF THE BORROWER MATERIALS OR THE ADEQUACY OF THE
PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR OMISSIONS FROM THE
BORROWER MATERIALS.  NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED

 

CREDIT AGREEMENT – Page 77 

 

 

 

OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A
PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM
VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ANY AGENT PARTY IN CONNECTION WITH
THE BORROWER MATERIALS OR THE PLATFORM.  In no event shall the Administrative
Agent or any of its Related Parties (collectively, the "Agent
Parties") have any liability to the Borrower, any Lender or any
other Person for losses, claims, damages, liabilities or expenses of any kind
(whether in tort, contract or otherwise) arising out of the Borrower's or the
Administrative Agent's transmission of Borrower Materials through the Internet,
except to the extent that such losses, claims, damages, liabilities or expenses
are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted from the gross negligence, bad faith,
fraud or willful misconduct of such Agent Party; provided, however,
that in no event shall any Agent Party have any liability to the Borrower, any
Lender or any other Person for indirect, special, incidental, consequential or
punitive damages (as opposed to direct or actual damages).

(d)                
Change of Address, Etc.  Each of the Borrower and the Administrative Agent
may change its address, facsimile or telephone number for notices and
other communications hereunder by notice to the other parties hereto.  Each other
Lender may change its address, facsimile or telephone number for notices
and other communications hereunder by notice to the Borrower and the
Administrative Agent.  In addition, each Lender agrees to notify the
Administrative Agent from time to time to ensure that the Administrative Agent
has on record (i) an effective address, contact name, telephone number,
facsimile number and electronic mail address to which notices and other
communications may be sent and (ii) accurate wire instructions for such Lender. 
Furthermore, each Public Lender agrees to cause at least one individual at or
on behalf of such Public Lender to at all times have selected the "Private
Side Information" or similar designation on the content declaration screen
of the Platform in order to enable such Public Lender or its delegate, in
accordance with such Public Lender's compliance procedures and applicable Law,
including United States Federal and state securities Laws, to make reference to
Borrower Materials that are not made available through the "Public Side
Information" portion of the Platform and that may contain material
non-public information with respect to the Borrower or its securities for
purposes of United States Federal or state securities laws.

(e)                
Reliance by Administrative
Agent and Lenders.  The
Administrative Agent and the Lenders shall be entitled to rely and act upon any
notices (including telephonic or electronic Committed Loan Notices) purportedly
given by or on behalf of the Borrower even if (i) such notices were not made in
a manner specified herein, were incomplete or were not preceded or followed by
any other form of notice specified herein, or (ii) the terms thereof, as
understood by the recipient, varied from any confirmation thereof.  The
Borrower shall indemnify the Administrative Agent, each Lender and the Related
Parties of each of them from all losses, costs, expenses and liabilities
resulting from the reliance by such Person on each notice purportedly given by
or on behalf of the Borrower, in the absence of gross negligence or willful
misconduct as determined in a final and non-appealable judgment by a court of
competent jurisdiction.  All telephonic notices to and other telephonic
communications with the Administrative

 

CREDIT AGREEMENT – Page 78 

 

 

 

Agent may be recorded by the Administrative Agent, and each of the
parties hereto hereby consents to such recording.

10.03        
No Waiver; Cumulative Remedies;
Enforcement.  No failure by any
Lender or the Administrative Agent to exercise, and no delay by any such Person
in exercising, any right, remedy, power or privilege hereunder shall operate as
a waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege.  The
rights, remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by Law.

Notwithstanding anything
to the contrary contained herein or in any other Loan Document, the authority
to enforce rights and remedies hereunder and under the other Loan Documents
against the Borrower or any of them shall be vested exclusively in, and all actions
and proceedings at Law in connection with such enforcement shall be instituted
and maintained exclusively by, the Administrative Agent in accordance with Section
8.02 for the benefit of all the Lenders; provided, however,
that the foregoing shall not prohibit (a) the Administrative Agent from
exercising on its own behalf the rights and remedies that inure to its benefit
(solely in its capacity as Administrative Agent) hereunder and under the other
Loan Documents, (b) any Lender from exercising setoff rights in accordance with
Section 10.08 (subject to the terms of Section 2.13), or (c) any
Lender from filing proofs of claim or appearing and filing pleadings on its own
behalf during the pendency of a proceeding relative to the Borrower under any
Debtor Relief Law; and provided, further, that if at any time
there is no Person acting as Administrative Agent hereunder and under the other
Loan Documents, then (i) the Required Lenders shall have the rights otherwise
ascribed to the Administrative Agent pursuant to Section 8.02 and (ii)
in addition to the matters set forth in subsections (b), (c) and (d) of
the preceding proviso and subject to Section 2.11, any Lender may, with
the consent of the Required Lenders, enforce any rights and remedies available
to it and as authorized by the Required Lenders.

10.04        
Expenses; Indemnity; Damage
Waiver. 

(a)                
Costs and Expenses.  The Borrower shall pay (i) all reasonable and
invoiced out‐of‐pocket fees and expenses incurred by the
Administrative Agent and its Affiliates (including the reasonable and invoiced
fees, charges and disbursements of a single counsel for the Administrative
Agent in reasonable detail), in connection with the syndication of the credit
facilities provided for herein, the preparation, negotiation, execution, delivery
and administration of this Agreement and the other Loan Documents or any
amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions contemplated hereby or thereby shall be
consummated), and (ii) all reasonable and invoiced out‐of‐pocket
expenses incurred by the Administrative Agent, any Lender (including the
reasonable and invoiced fees, charges and disbursements of any one counsel for
the Administrative Agent and one additional counsel on behalf of the Lenders),
in connection with the enforcement or protection of its rights (A) in
connection with this Agreement and the other Loan Documents, including its
rights under this Section, or (B) in connection with the Loans made
hereunder, including all such out‐of‐pocket expenses incurred
during any workout, restructuring or negotiations in respect of such Loans.

 

CREDIT AGREEMENT – Page 79 

 

 

 

(b)                
Indemnification by the Borrower.  The Borrower shall indemnify the Administrative
Agent (and any sub-agent thereof) 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 fees, charges and
disbursements of any counsel for any Indemnitee), incurred by any Indemnitee or
asserted against any Indemnitee by any third party or by the Borrower arising
out of, in connection with, or as a result of (i) the execution or
delivery of this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby or thereby, the performance by the parties
hereto of their respective obligations hereunder or thereunder, the
consummation of the transactions contemplated hereby or thereby, or, in the
case of the Administrative Agent (and any sub-agent thereof) and its Related
Parties only, the administration of this Agreement and the other Loan Documents
(including in respect of any matters addressed in Section 3.01),
(ii) any Loan or the use or proposed use of the proceeds therefrom,
(iii) any actual or alleged presence or release of Hazardous Materials on
or from any property 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, whether brought by a third party
or by the Borrower, and regardless of whether any Indemnitee is a party
thereto, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN
PART, OUT OF THE COMPARATIVE, CONTRIBUTORY OR SOLE NEGLIGENCE OF THE
INDEMNITEE; provided  that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses (x) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the
gross negligence, bad faith, fraud or willful misconduct of such Indemnitee,
(y) result from any dispute solely among Indemnitees (not arising directly
or indirectly as a result of any act or omission by the Borrower or any
Subsidiary) or (z) result from a claim brought by the Borrower against
an Indemnitee for breach in bad faith of such Indemnitee's obligations
hereunder or under any other Loan Document, if the Borrower has obtained a final
and nonappealable judgment in its favor on such claim as determined by a court
of competent jurisdiction.

(c)                
Reimbursement by Lenders.  To the extent that the Borrower for any reason
fails to indefeasibly pay any amount required under subsection (a)
or (b) of this Section 10.04 to be paid by it to the Administrative
Agent (or any sub-agent thereof) or any Related Party of the Administrative
Agent but without affecting the Borrower's reimbursement obligations hereunder,
each Lender severally agrees to pay to the Administrative Agent (or any such
sub-agent) or such Related Party, as the case may be, such Lender's Applicable
Percentage (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
Administrative Agent (or any such sub-agent) in its capacity as such, or
against any Related Party of the Administrative Agent acting for the
Administrative Agent (or any such sub-agent) in connection with such capacity. 
The obligations of the Lenders under this subsection (c) are subject to
the provisions of Section 2.10(d).
 

 

CREDIT AGREEMENT – Page 80 

 

 

 

(d)                
Waiver of Consequential
Damages, Etc.  To the fullest extent
permitted by applicable law, the Borrower shall not assert, and 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, any
other Loan Document or any agreement or instrument contemplated hereby, the
transactions contemplated hereby or thereby, any Loan or the use of the
proceeds thereof.  No Indemnitee referred to in subsection (b) above shall be
liable for any damages arising from the use by unintended recipients of any
information or other materials distributed to such unintended recipients by
such Indemnitee through telecommunications, electronic or other information
transmission systems in connection with this Agreement or the other Loan
Documents or the transactions contemplated hereby or thereby other than for
direct or actual damages resulting from the gross negligence, bad faith, fraud
or willful misconduct of such Indemnitee as determined by a final and
nonappealable judgment of a court of competent jurisdiction.

(e)                
Payments.  All amounts due under this Section 10.04
shall be payable not later than ten Business Days after demand therefor.

(f)                 
Survival.  The agreements in this Section 10.04 and the
indemnity provisions of Section 10.02(e)  shall survive the
resignation of the Administrative Agent, the replacement of any Lender, the
termination of the Aggregate Commitments and the repayment, satisfaction or
discharge of all the other Obligations.

10.05        
Payments Set Aside.  To the extent that any payment by or on behalf of
the Borrower is made to the Administrative Agent or any Lender, or the
Administrative Agent or any Lender exercises its right of setoff, and such
payment or the proceeds of such setoff or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required
(including pursuant to any settlement entered into by the Administrative Agent
or such Lender in its discretion) to be repaid to a trustee, receiver or any
other party, in connection with any proceeding under any Debtor Relief Law or
otherwise, then (a) to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall, to the fullest extent
possible under the provisions of applicable Laws, be revived and continued in
full force and effect as if such payment had not been made or such setoff had
not occurred, and (b) each Lender severally agrees to pay to the Administrative
Agent upon demand its applicable share (without duplication) of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon
from the date of such demand to the date such payment is made at a rate per
annum equal to the Federal Funds Rate from time to time in effect.  The
obligations of the Lenders under subsection (b) of the preceding sentence
shall survive the payment in full of the Obligations and the termination of
this Agreement.

10.06        
Successors and Assigns. 

(a)                
Successors and Assigns
Generally.  The provisions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or obligations
hereunder without the prior written consent of the Administrative Agent and
each Lender and no Lender may assign or

 

CREDIT AGREEMENT – Page 81 

 

 

 

otherwise transfer any of its rights or obligations hereunder except
(i) to an assignee in accordance with the provisions of subsection (b) of this
Section, (ii) by way of participation in accordance with the provisions of
subsection (d) of this Section, or (iii) by way of pledge or assignment of
a security interest subject to the restrictions of subsection (f) of this
Section (and any other attempted assignment or transfer by any party hereto
shall be null and void).  Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby, Participants to the
extent provided in subsection (d) of this Section 10.06 and, to the
extent expressly contemplated hereby, the Related Parties of each of the
Administrative Agent and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

(b)                
Assignments by Lenders.  Any Lender may at any time 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); provided  that any such assignment shall be subject to the
following conditions:

                                                                              
(i)           
Minimum Amounts. 

(A)               
in the case of an assignment of
the entire remaining amount of the assigning Lender's Commitment and the Loans
at the time owing to it or in the case of an assignment to a Lender, an
Affiliate of a Lender or an Approved Fund, no minimum amount need be assigned;
and

(B)               
in any case not described in
subsection (b)(i)(A) of this Section, the aggregate amount of the Commitment
(which for this purpose includes Loans outstanding thereunder) or, if the
Commitment is not then in effect, the principal outstanding balance of the
Loans 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 or, if "Trade Date" is
specified in the Assignment and Assumption, as of the Trade Date, shall not be
less than $5,000,000 unless each of the Administrative Agent and, so long as no
Event of Default has occurred and is continuing, the Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met.

                                                                            
(ii)           
Proportionate Amounts.  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 with respect to the Loans or the Commitment
assigned.

 

CREDIT AGREEMENT – Page 82 

 

 

 

                                                                           
(iii)           
Required Consents.  No consent shall be required for any assignment
except to the extent required by subsection (b)(i)(B) of this Section 10.06
and, in addition:

(A)               
the consent of the Borrower (such
consent not to be unreasonably withheld or delayed) shall be required unless
(1) an Event of Default has occurred and is continuing at the time of such
assignment or (2) such assignment is to a Lender, an Affiliate of a Lender
or an Approved Fund; provided  that the Borrower shall be deemed to have
consented to any such assignment unless it shall object thereto by written
notice to the Administrative Agent within fifteen (15)  Business Days after
having received notice thereof; and

(B)               
the consent of the Administrative
Agent (such consent not to be unreasonably withheld or delayed) shall be required
if such assignment is to a Person that is not a Lender, an Affiliate of such
Lender or an Approved Fund with respect to such Lender.

                                                                          
(iv)           
Assignment and Assumption.  The parties to each assignment shall execute and
deliver to the Administrative Agent an Assignment and Assumption, together with
payment of a processing and recordation fee in the amount of $3,500 (which such
payment is not the responsibility of the Borrower); provided, however,
that the Administrative Agent may, in its sole discretion, elect to waive such
processing and recordation fee in the case of any assignment.  The assignee, if
it is not a Lender, shall deliver to the Administrative Agent an Administrative
Questionnaire.

                                                                            
(v)           
No Assignment to Borrower.  No such assignment shall be made to the Borrower or
any of the Borrower's Affiliates or Subsidiaries.

                                                                          
(vi)           
No Assignment to Natural
Persons.  No such assignment shall be
made to a natural person.

Subject to acceptance and
recording thereof by the Administrative Agent pursuant to subsection (c) of
this Section 10.06, from and after the effective date specified in each
Assignment and Assumption, the assignee thereunder shall be a party to this
Agreement 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 3.01, 3.04, 3.05  and 10.04 
with respect to facts and circumstances occurring prior to the effective date
of such assignment.  Upon request, the Borrower (at its expense) shall execute
and deliver a Note to the assignee Lender.  Any assignment or transfer by a
Lender of rights or obligations under this Agreement that does not comply with
this subsection shall be treated for purposes of this Agreement as a

CREDIT AGREEMENT – Page 83 

 

 

 

sale
by such Lender of a participation in such rights and obligations in accordance
with subsection (d) of this Section 10.06. 

(c)                
Register.  The Administrative Agent, acting solely for this
purpose as an agent of the Borrower, shall maintain at the Administrative
Agent's Office a copy of each Assignment and Assumption delivered to it (or the
equivalent thereof in electronic form) and a register for the recordation of
the names and addresses of the Lenders, and the Commitments of, and principal
amounts (and stated interest) of the Loans owing to, each Lender pursuant to
the terms hereof from time to time (the "Register"). 
The entries in the Register shall be prima facie evidence, and the Borrower,
the Administrative Agent and the Lenders shall 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 and any Lender, at
any reasonable time and from time to time upon reasonable prior notice.  

(d)                
Participations.  Any Lender may at any time, without the consent of,
or notice to, the Borrower or the Administrative Agent, sell participations to
any Person (other than a natural person or the Borrower or any of the
Borrower's Affiliates or Subsidiaries) (each, a "Participant")
in all or a portion of such Lender's rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans owing
to it); provided  that (i) such Lender's obligations under this
Agreement shall remain unchanged, (ii) such Lender shall remain solely
responsible to the other parties hereto for the performance of such obligations
and (iii) the Borrower, the Administrative Agent and the Lenders shall
continue to deal solely and directly with such Lender in connection with such
Lender's rights and obligations under this Agreement.  For the avoidance of
doubt, each Lender shall be responsible for the indemnity under Section
10.04(c) without regard to the existence of any participation.

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, waiver or other
modification described in the first proviso to Section 10.01 that
affects such Participant.  The Borrower agrees that each Participant shall be
entitled to the benefits of Sections 3.01, 3.04  and 3.05 
to the same extent as if it were a Lender and had acquired its interest by
assignment pursuant to subsection (b) of this Section 10.06 (it being
understood that the documentation required under Section 3.01(e) shall
be delivered to the Lender who sells the participation); provided  that
such Participant (A) agrees to be subject to the provisions of Sections 3.06
and 10.13  as if it were an assignee under paragraph (b) of this Section
10.06 and (B) shall not be entitled to receive any greater payment under Sections
3.01 or 3.04, with respect to any participation, than the Lender
from whom it acquired the applicable participation would have been entitled to
receive, unless the sale of the participation to such Participant is made with
the Borrower's prior written consent.  A Participant that would be a Foreign
Lender if it were a Lender shall not be entitled to the benefits of Section
3.01, unless the Borrower is notified of the

CREDIT AGREEMENT – Page 84 

 

 

 

participation
sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 3.01(e) as thought it were a Lender. 
Each Lender that sells a participation agrees, at the Borrower's request and
expense, to use reasonable efforts to cooperate with the Borrower to effectuate
the provisions of Section 3.06 with respect to any Participant.  To the
extent permitted by law, each Participant also shall be entitled to the
benefits of Section 10.08 as though it were a Lender; provided 
that such Participant agrees to be subject to Section 2.11 as
though it were a Lender.  Each Lender that sells a participation shall, acting
solely for this purpose as an agent of the Borrower, maintain a register on
which it enters the name and address of each Participant and the principal
amounts (and stated interest) of each Participant's interest in the Loans or
other obligations under the Loan Documents (the "Participant
Register"); provided  that no Lender shall have any
obligation to disclose all or any portion of the Participant Register
(including the identity of any Participant or any information relating to a
Participant's interest in any commitments, loans or its other obligations under
any Loan Document) to any Person except to the extent that such disclosure is
necessary to establish that such commitment, loan or other obligation is in
registered form under Section 5f.103-1(c) of the United States Treasury
Regulations.  The entries in the Participant Register shall be conclusive
absent manifest error, and such Lender shall treat each Person whose name is
recorded in the Participant Register as the owner of such participation for all
purposes of this Agreement notwithstanding any notice to the contrary.  For the
avoidance of doubt, the Administrative Agent (in its capacity as Administrative
Agent) shall have no responsibility for maintaining a Participant Register.

Notwithstanding the preceding paragraph, any Participant that is a Farm
Credit Lender that (i) has purchased a participation in a minimum amount
of $5,000,000, (ii) has been designated as a voting Participant (a “Voting
Participant”) in a written notice (a “Voting Participant Notice”)
sent by the relevant Lender (or the existing Voting Participant, as applicable)
to the Borrower and the Administrative Agent and (iii) receives, prior to
becoming a Voting Participant, the consent of the Borrower and the
Administrative Agent (such Borrower and Administrative Agent consent to be
required only to the extent and under the circumstances it would be required if
such Voting Participant were to become a Lender pursuant to an assignment in
accordance with Section 10.06(b)) and such consent is not required
for an assignment to an existing Voting Participant), shall be entitled to vote
as if such Voting Participant were a Lender on all matters subject to a vote by
Lenders, and the voting rights of the selling Lender (or selling existing
Voting Participant, as applicable) shall be correspondingly reduced, on a
dollar-for-dollar basis.  To be effective, each Voting Participant Notice shall
include, with respect to each Voting Participant, the information that would be
included by a prospective Lender in an Assignment and Assumption and the Dollar
amount of the participation purchased.  Notwithstanding the foregoing, each
Farm Credit Lender designated as a Voting Participant in Schedule 10.06 
shall be a Voting Participant without delivery of a Voting Participation Notice
and without the prior written consent of the Borrower or the Administrative
Agent.  The selling Lender (or selling existing Voting Participant, as
applicable) and the purchasing Voting Participant shall notify the
Administrative Agent within three Business Days of any termination, reduction
or increase of the amount of, such participation.  The Administrative Agent shall
be entitled to conclusively rely on information contained in Voting Participant
Notices and all other

CREDIT AGREEMENT – Page 85 

 

 

 

notices delivered pursuant hereto.  The voting rights
of each Voting Participant are solely for the benefit of such Voting
Participant and shall not inure to any assignee or participant of such Voting
Participant that is not a Farm Credit Lender.

(e)                
Certain Pledges.  Any Lender may at any time pledge or assign a
security interest in all or any portion of its rights under this Agreement
(including under its Note, if any) to secure obligations of such Lender,
including any pledge or assignment to secure obligations to a Federal Reserve
Bank or to the Federal Farm Credit Banks Funding Corporation; provided 
that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

10.07        
Treatment of Certain
Information; Confidentiality.  Each
of the Administrative Agent and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information
may be disclosed (a) to its Affiliates and to its Related Parties (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 purporting to have jurisdiction over such Person or its Related
Parties (including any self-regulatory authority, such as the National
Association of Insurance Commissioners), (c) to the extent required by
applicable Laws or regulations or by any subpoena or similar legal process, (d)
to any other party hereto, (e) in connection with the exercise of any remedies
hereunder or under any other Loan Document or any 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) 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
party (or its Related Parties) to any swap, derivative or other transaction
under which payments are to be made by reference to the Borrower and its
obligations, this Agreement or payments hereunder, (g) on a confidential basis
to (i) any rating agency in connection with rating the Borrower or its
Subsidiaries or the credit facilities provided hereunder or (ii) the CUSIP
Service Bureau or any similar agency in connection with the issuance and
monitoring of CUSIP numbers or other market identifiers with respect to the
credit facilities provided hereunder, (h) with the consent of the Borrower or
(i) to the extent such Information (x) becomes publicly available other
than as a result of a breach of this Section 10.07 or (y) becomes
available to the Administrative Agent, any Lender or any of their respective
Affiliates on a nonconfidential basis from a source other than the Borrower.

For purposes of this
Section, "Information" means all information received
from the Borrower or any Subsidiary relating to the Borrower or any Subsidiary
or any of their respective businesses, other than any such information that is
available to the Administrative Agent or any Lender on a nonconfidential basis
prior to disclosure by the Borrower or any Subsidiary, provided  that, in
the case of information received from the Borrower or any Subsidiary after the
date hereof, such information is not identified as "PUBLIC" pursuant
to Section 6.02  or is otherwise 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

CREDIT AGREEMENT – Page 86 

 

 

 

to maintain the confidentiality of such Information as
such Person would accord to its own confidential information.  

Each of the Administrative
Agent and the Lenders acknowledges that (a) the Information may include
material non-public information concerning the Borrower or a Subsidiary, as the
case may be, (b) it has developed compliance procedures regarding the use of
material non-public information and (c) it will handle such material non-public
information in accordance with applicable Law, including United States Federal
and state securities Laws.

10.08        
Right of Setoff.  If an Event of Default shall have occurred and be
continuing, each Lender and each of their respective Affiliates is hereby
authorized at any time and from time to time, to the fullest extent permitted
by applicable law, to set off and apply any and all deposits (general or
special, time or demand, provisional or final, in whatever currency) at any
time held and other obligations (in whatever currency) at any time owing by such
Lender or any such Affiliate to or for the credit or the account of the
Borrower against any and all of the obligations of the Borrower now or
hereafter existing under this Agreement or any other Loan Document to such
Lender, irrespective of whether or not such Lender shall have made any demand
under this Agreement or any other Loan Document and although such obligations
of the Borrower may be contingent or unmatured or are owed to a branch or
office of such Lender different from the branch or office holding such deposit
or obligated on such indebtedness.  The rights of each Lender and their
respective Affiliates under this Section 10.08 are in addition to other
rights and remedies (including other rights of setoff) that such Lender or
their respective Affiliates may have.  Each Lender agrees to notify the
Borrower and the Administrative Agent promptly after any such setoff and
application, provided  that the failure to give such notice shall not
affect the validity of such setoff and application.

10.09        
Interest Rate Limitation.  Notwithstanding anything to the contrary contained
in any Loan Document, the interest paid or agreed to be paid under the Loan
Documents shall not exceed the maximum rate of non-usurious interest permitted
by applicable Law (the "Maximum Rate").  If the
Administrative Agent or any Lender shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the principal
of the Loans or, if it exceeds such unpaid principal, refunded to the
Borrower.  In determining whether the interest contracted for, charged, or
received by the Administrative Agent or a Lender exceeds the Maximum Rate, such
Person may, to the extent permitted by applicable Law, (a) characterize any
payment that is not principal as an expense, fee, or premium rather than
interest, (b) exclude voluntary prepayments and the effects thereof, and (c)
amortize, prorate, allocate, and spread in equal or unequal parts the total
amount of interest throughout the contemplated term of the Obligations
hereunder.

10.10        
Counterparts; Integration;
Effectiveness.  This Agreement may be
executed in counterparts (and by different parties hereto in different
counterparts), each of which shall constitute an original, but all of which
when taken together shall constitute a single contract.  This Agreement and the
other Loan Documents 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

 

CREDIT AGREEMENT – Page 87 

 

 

 

hereof that, when taken together, bear the signatures of each of the
other parties hereto.  Delivery of an executed counterpart of a signature page
of this Agreement by facsimile or other electronic imaging means shall be
effective as delivery of a manually executed counterpart of this Agreement.

10.11        
Survival of Representations and
Warranties.  All representations and
warranties made hereunder and in any other Loan Document or other document
delivered pursuant hereto or thereto or in connection herewith or therewith shall
survive the execution and delivery hereof and thereof.  Such representations
and warranties have been or will be relied upon by the Administrative Agent and
each Lender, regardless of any investigation made by the Administrative Agent
or any Lender or on their behalf and notwithstanding that the Administrative
Agent or any Lender may have had notice or knowledge of any Default at the time
of any Committed Loan, and shall continue in full force and effect as long as
any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied.

10.12        
Severability.  If any provision of this Agreement or the other
Loan Documents is held to be illegal, invalid or unenforceable, (a) the
legality, validity and enforceability of the remaining provisions of this Agreement
and the other Loan Documents shall not be affected or impaired thereby and (b)
the parties shall endeavor in good faith negotiations to replace the illegal,
invalid or unenforceable provisions with valid provisions the economic effect
of which comes as close as possible to that of the illegal, invalid or
unenforceable provisions.  The invalidity of a provision in a particular
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

10.13        
Replacement of Lenders.  If (i) any Lender requests compensation under Section 3.04,
(ii) 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
3.01, (iii) if any Lender is an Impacted Lender, or (iv) any Lender fails
to consent to any amendment to this Agreement as requested by the Borrower
which requires the consent of all Lenders (or all of the Lenders affected
thereby) and which is consented to by the Required Lenders, 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, and
consents required by, Section 10.06), all of its interests, rights
(other than its rights to payments of existing claims pursuant to Sections 3.01 
and 3.04) and obligations under this Agreement and the related Loan
Documents to an assignee that shall assume such obligations (which assignee may
be another Lender, if a Lender accepts such assignment), provided  that:

(a)                
the Borrower shall have paid to
the Administrative Agent the assignment fee specified in Section 10.06(b)
(unless such fee shall have been waived by the Administrative Agent in the
Administrative Agent's sole discretion);

(b)                
such Lender shall have received
payment of an amount equal to the outstanding principal of its Loans, accrued
interest thereon, accrued fees and all other amounts payable to it hereunder
and under the other Loan Documents (including any amounts under Section 3.05)
from the assignee (to the extent of such outstanding

 

CREDIT AGREEMENT – Page 88 

 

 

 

principal and accrued interest and fees) or the Borrower (in the case
of all other amounts);

(c)                
in the case of any such assignment
resulting from a claim for compensation under Section 3.04 or payments
required to be made pursuant to Section 3.01, such assignment will
result in a reduction in such compensation or payments thereafter; 

(d)                
such assignment does not conflict
with applicable Laws; and

(e)                
if the replacement of a Lender is
being made pursuant to subsection (iv)  above, the replacement
Lender shall have consented to such requested amendment. 

A Lender shall not be
required to make any such assignment or 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.  

10.14        
Governing Law; Jurisdiction;
Etc.

(a)                
GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

(b)                
SUBMISSION TO JURISDICTION.  THE BORROWER IRREVOCABLY AND UNCONDITIONALLY
SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE
COURTS 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 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 COURT OR, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE 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 IN ANY OTHER LOAN
DOCUMENT SHALL AFFECT ANY RIGHT THAT THE ADMINISTRATIVE AGENT OR ANY LENDER MAY
OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT AGAINST THE BORROWER OR ITS PROPERTIES IN THE COURTS OF
ANY JURISDICTION.

(c)                
WAIVER OF VENUE.  THE BORROWER IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY

 

CREDIT AGREEMENT – Page 89 

 

 

 

APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE
LAYING OF VENUE OF ANY 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 10.14.  EACH OF THE PARTIES HERETO
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR
PROCEEDING IN ANY SUCH COURT.

(d)                
SERVICE OF PROCESS.  EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE
OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. 
NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW.

10.15        
Waiver of Jury Trial.  EACH PARTY HERETO HEREBY IRREVOCABLY 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 OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  EACH
PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER
PERSON 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 AND THE OTHER LOAN DOCUMENTS BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

10.16        
No Advisory or Fiduciary
Responsibility.  In connection with
all aspects of each transaction contemplated hereby (including in connection
with any amendment, waiver or other modification hereof or of any other Loan
Document), the Borrower acknowledges and agrees, and acknowledges its
Affiliates' understanding, that:  (i) (A) the arranging and other services
regarding this Agreement provided by CoBank, as the Lead Arranger, and the
Administrative Agent are arm's-length commercial transactions between the
Borrower and its Affiliates, on the one hand, and the Administrative Agent and
CoBank, as the Lead Arranger, on the other hand, (B) the Borrower has consulted
its own legal, accounting, regulatory and tax advisors to the extent it has
deemed appropriate, and (C) the Borrower is capable of evaluating, and
understands and accepts, the terms, risks and conditions of the transactions
contemplated hereby and by the other Loan Documents; (ii) (A) each of
CoBank, as the Lead Arranger, and the Administrative Agent is and has been
acting solely as a principal and, except as expressly agreed in writing by the
relevant parties, has not been, is not, and will not be acting as an advisor,
agent or fiduciary for the Borrower or any of its Affiliates, or any other
Person and (B) neither CoBank, as the Lead Arranger, nor the Administrative
Agent has any obligation to the Borrower or any of its Affiliates with respect
to the transactions contemplated hereby except those obligations expressly set
forth herein and in the other Loan Documents; and (iii) CoBank, as the

 

CREDIT AGREEMENT – Page 90 

 

 

 

Lead Arranger, and the Administrative Agent and their respective
Affiliates may be engaged in a broad range of transactions that involve
interests that differ from those of the Borrower and its Affiliates, and
neither CoBank, as the Lead Arranger, nor the Administrative Agent has any
obligation to disclose any of such interests to the Borrower or its
Affiliates.  To the fullest extent permitted by law, the Borrower hereby waives
and releases any claims that it may have against CoBank, as the Lead Arranger,
and the Administrative Agent with respect to any breach or alleged breach of
agency or fiduciary duty in connection with any aspect of any transaction
contemplated hereby.

10.17        
Electronic Execution of
Assignments and Certain Other Documents. 
The words "execution," "signed," "signature," and
words of like import in or related to any document to be signed in connection
with this Agreement and the transactions contemplated hereby (including without
limitation Assignment and Assumptions, amendments or other Committed Loan
Notices, waivers and consents) shall be deemed to include electronic signatures
or the keeping of records in electronic form, each of which shall be of the
same legal effect, validity or enforceability as a manually executed signature
or the use of a paper-based recordkeeping system, as the case may be, to the
extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State
Electronic Signatures and Records Act, or any other similar state laws based on
the Uniform Electronic Transactions Act; provided that notwithstanding anything
contained herein to the contrary the Administrative Agent is under no
obligation to agree to accept electronic signatures in any form or in any
format unless expressly agreed to by the Administrative Agent pursuant to
procedures approved by it.

10.18        
USA PATRIOT Act.  Each Lender that is subject to Anti-Terrorism Laws, including the USA Patriot Act, and the Administrative Agent (for itself and not on
behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the USA 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 or the Administrative Agent, as applicable, to identify the Borrower in
accordance with such Act.  As provided in Section 7.12, the Borrower
shall, promptly following a request by the Administrative Agent or any Lender,
provide all documentation and other information that the Administrative Agent
or such Lender requests in order to comply with its ongoing obligations under
applicable Anti-Terrorism Laws, including the USA Patriot Act.

10.19        
Time of the Essence.  Time is of the essence of the Loan Documents.

10.20        
Designation as Senior Debt.  All Obligations shall be "Designated Senior
Indebtedness" for purposes of any public indebtedness of the Borrower and
its Subsidiaries issued after the Closing Date.

10.21        
FCC Approval.  Notwithstanding anything to the contrary contained
in this Agreement or in the other Loan Documents, neither the Administrative
Agent nor any Lender will take any action pursuant to this Agreement or any of
the other Loan Documents, which would constitute or result in a change in
control of the Borrower or any of its Subsidiaries requiring the prior approval
of the FCC without first obtaining such prior approval of the FCC.  After the
occurrence of an Event of Default, the Borrower shall take or cause to be taken
any

 

CREDIT AGREEMENT – Page 91 

 

 

 

action which the Administrative Agent may reasonably request in order
to obtain from the FCC such approval as may be necessary to enable the
Administrative Agent to exercise and enjoy the full rights and benefits granted
to the Administrative Agent, for the benefit of the Lenders by this Agreement
or any of the other Loan Documents, including, at the Borrower's cost and
expense, the use of the Borrower's best efforts to assist in obtaining such
approval for any action or transaction contemplated by this Agreement or any of
the other Loan Documents for which such approval is required by Law.

10.22        
Entire Agreement.  THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

CREDIT AGREEMENT – Page 92 

 

 

 

	
    

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

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  UNITED
  STATES CELLULAR

  
	
    

  	
    

  	
  CORPORATION

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
  /s/ Steven T.
  Campbell

  
	
    

  	
    

  	
  Steven T.
  Campbell

  
	
    

  	
    

  	
  Executive Vice
  President - Finance, Chief Financial

  
	
    

  	
    

  	
  Officer and
  Treasurer

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
  /s/ Peter L.
  Sereda

  
	
    

  	
    

  	
  Peter L.
  Sereda, Authorized Representative and

  
	
    

  	
    

  	
  Senior Vice
  President - Finance and Treasurer of

  
	
    

  	
    

  	
  Parent Company

  

 

CREDIT
AGREEMENT – Signature Page

 

 

 

	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  COBANK, ACB,

  
	
    

  	
    

  	
  as
  Administrative Agent and a Lender

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
  /s/ Andy Smith

  
	
    

  	
    

  	
  Andy Smith

  
	
    

  	
    

  	
  Vice President

  

CREDIT
AGREEMENT – Signature Page

 

 

 

SCHEDULE 1.01

SPECIAL ENTITIES

                                                                                                                                                                                 

                                                                                                                                                                                 

King Street Wireless, L.P., and
King Street Wireless, Inc., its general partner           

Aquinas Wireless, L.P., and
Aquinas Wireless, Inc., its general partner                       

Advantage Spectrum, L.P., and
Frequency Advantage, L.P., its general partner    

Allentown SMSA Limited
Partnership                                                                                             

Farmers Cellular Telephone Company, Inc.                                                                                  

Farmers Mutual Cellular
Telephone Company, Inc.                                                                    

Fresno MSA Limited Partnership                                                                                                     

Iowa RSA No. 9 Limited
Partnership                                                                                              

Iowa RSA No. 12 Limited Partnership                                                                                            

Jefferson Cellular Telephone Company, Inc.                                                                                

Los Angeles SMSA Limited Partnership                                                                                         

Madison SMSA Tower Holdings LLC                                                                                               

Oklahoma City SMSA Limited
Partnership                                                                                   

Oklahoma City SMSA Tower Holdings LLC                                                                 

Pennsylvania RSA 1 Limited Partnership                                                                                       

Pennsylvania RSA No. 6(I) Limited Partnership                                                                           

Pennsylvania RSA No. 6(II) Limited Partnership                                                                         

Redding MSA Limited Partnership
                                                                                                 

Texas RSA 6 Limited Partnership                                                                                                    

Texas RSA 6 Tower Holdings, LP                                                                                                     

Venus Cellular Telephone Company, Inc.                                                                                     

 

 

 

 

 

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

 

	
  Lender

  	
  Commitment

  	
  Applicable Percentage

  
	
  CoBank, ACB

  	
  $225,000,000

  	
  100.0%

  

 

 

 

 

 

 

SCHEDULE 5.05

UNITED STATES CELLULAR CORPORATION

 

SUPPLEMENT TO INTERIM FINANCIAL STATEMENTS

 

 

See the attached copy of
“Contractual and Other Obligations” from U.S. Cellular’s Form 10-K for the year
ended December 31, 2013.  There were no material changes outside the ordinary
course of business since December 31, 2013 to the Contractual and Other Obligations
disclosed in U.S. Cellular’s Form 10-K for the year ended December 31, 2013,
except for a contractual obligation to Amdocs Software Systems Limited entered
into on November 25, 2014, that is estimated to be approximately $110 million
through September 30, 2019, as disclosed in U.S. Cellular’s Form 8-K dated
November 25, 2014.

 

 

 

 

 

 

“Contractual and Other
Obligations” from U.S. Cellular’s Form 10-K for the year ended December 31,
2013

 

	
  Contractual
  and Other Obligations

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  At December 31,
  2013, the resources required for contractual obligations were as follows:

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
  Payments Due by Period

  
	
  (Dollars in
  millions)

  	
  Total

  	
    

  	
  Less Than 1 Year

  	
    

  	
  1 - 3 Years

  	
    

  	
  3 - 5 Years

  	
    

  	
  More Than 5 Years

  
	
  Long-term debt
  obligations (1)

  	
  $

  	
   886.0 

  	
    

  	
  $

  	
   -  

  	
    

  	
  $

  	
   -  

  	
    

  	
  $

  	
   -  

  	
    

  	
  $

  	
   886.0 

  
	
  Interest
  payments on long-term debt obligations 

  	
    

  	
   1,846.2 

  	
    

  	
    

  	
   60.3 

  	
    

  	
    

  	
   120.4 

  	
    

  	
    

  	
   120.4 

  	
    

  	
    

  	
   1,545.1 

  
	
  Operating leases
  (2)

  	
    

  	
   1,363.6 

  	
    

  	
    

  	
   152.3 

  	
    

  	
    

  	
   251.3 

  	
    

  	
    

  	
   176.3 

  	
    

  	
    

  	
   783.7 

  
	
  Capital leases 

  	
    

  	
   6.9 

  	
    

  	
    

  	
   0.5 

  	
    

  	
    

  	
   1.1 

  	
    

  	
    

  	
   1.0 

  	
    

  	
    

  	
   4.3 

  
	
  Purchase
  obligations (3)

  	
    

  	
   1,783.8 

  	
    

  	
    

  	
   589.9 

  	
    

  	
    

  	
   1,006.9 

  	
    

  	
    

  	
   121.0 

  	
    

  	
    

  	
   79.5 

  
	
    

  	
    

  	
  $

  	
   5,900.0 

  	
    

  	
  $

  	
   803.0 

  	
    

  	
  $

  	
   1,379.7 

  	
    

  	
  $

  	
   418.7 

  	
    

  	
  $

  	
   3,298.6 

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  (1)

  	
  Includes
  current and long-term portions of debt obligations. The total long-term debt
  obligation differs from Long-term debt in the Consolidated Balance Sheet due
  to capital leases and the $11.6 million unamortized discount related to U.S.
  Cellular’s 6.7% Senior Notes.  See Note 10 — Debt in the Notes to
  Consolidated Financial Statements for additional information.

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  (2)

  	
  Includes future
  lease costs related to office space, retail sites, cell sites and equipment. 
  See Note 11 — Commitments and Contingencies in the Notes to Consolidated
  Financial Statements for additional information.

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  (3)

  	
  Includes
  obligations payable under non-cancellable contracts, commitments for network
  facilities and transport services, agreements for software licensing,
  long-term marketing programs, and an agreement with Apple to purchase Apple
  iPhone products.  As described more fully in Note 5 — Acquisitions,
  Divestitures and Exchanges in the Notes to Consolidated Financial Statements,
  U.S. Cellular expects to incur network-related exit costs in the Divestiture
  Markets as a result of the transaction, including: (i) costs to decommission
  cell sites and mobile telephone switching office (“MTSO”) sites, (ii) costs
  to terminate real property leases and (iii) costs to terminate certain
  network access arrangements in the subject markets.  The impacts of these
  exit activities on U.S. Cellular's purchase obligations are reflected in the
  table above only to the extent that agreements were consummated at December
  31, 2013.

  

 

 The table above excludes
liabilities related to “unrecognized tax benefits” as defined by GAAP because
U.S. Cellular is unable to predict the period of settlement of such
liabilities.  Such unrecognized tax benefits were $28.8 million at December 31,
2013.

 

 

 

 

 

SCHEDULE 5.13

SUBSIDIARIES AND

OTHER EQUITY INVESTMENTS

 

Part (a).  Subsidiaries. 

The Subsidiaries identified on Exhibit
21 to U.S. Cellular’s 10-K for the period ended 12/31/13, a copy of which is
attached, except as follows:

 

The following companies identified on
Exhibit 21 to U.S. Cellular’s 10-K for the period ended 12/31/13 should no
longer be included as Subsidiaries:

 

                North Carolina RSA 1 Partnership

                USCIC of North Carolina RSA #1, Inc.

The
following companies should be added to the list of Subsidiaries identified on
Exhibit 21 to U.S. Cellular’s 10-K for the period ended 12/31/13:

VB Midwest I LLC

VB Midwest II LLC

VB Midwest III LLC

U.S. Cellular indirectly owns less than 100% of the
following subsidiaries listed on Exhibit 21 to U.S. Cellular’s 10-K for the
period ended 12/31/13:

 

Bangor
Cellular Telephone, L.P. – 97.5723% interest

Cedar Rapids Cellular Telephone, L.P. – 96.7636% interest

Community Cellular Telephone Company – 61.36% interest

Dubuque Cellular Telephone, L.P. – 97.5515% interest

Indiana RSA No. 4 Limited Partnership – 85.714% interest

Indiana RSA No. 5 Limited Partnership – 66.67% interest

Jacksonville Cellular Partnership – 97.567257% interest

Jacksonville Cellular Telephone Company - 97.567257% interest

Kansas #15 Limited Partnership – 75% interest

Kenosha Cellular Telephone, L.P. – 99.3223%

Madison Cellular Telephone Company – 92.5% interest

New York RSA 2 Cellular Partnership – 57.1428% interest

Racine Cellular Telephone Company – 96.0833% interest

St. Lawrence Seaway RSA Cellular Partnership – 60% interest

Texahoma Cellular Limited Partnership – 78.45135% interest

Western Sub-RSA Limited Partnership – 98.2353% interest

Wilmington Cellular Partnership – 98.82064% interest

Wilmington Cellular Telephone Company - 98.82064% interest

 

 

 

 

Yakima MSA Limited Partnership – 87.8085% interest

 

Part (b).  Other
Equity Investments. 

Advantage
Spectrum, L.P. – 90% interest

Allentown
SMSA Limited Partnership – 8.12% interest

Aquinas Wireless, L.P. – 90% interest

Farmers
Cellular Telephone Company, Inc. – 49% interest

Farmers
Mutual Cellular Telephone Company, Inc. – 49% interest

Fresno MSA Limited Partnership – 1.9% interest

Iowa RSA No. 9 Limited Partnership – 15.001% interest

Iowa RSA No. 12 Limited Partnership – 24.5% interest

Jefferson Cellular Telephone Company, Inc. – 49% interest

King Street Wireless, L.P. – 90% interest

Los Angeles SMSA Limited Partnership – 5.5% interest

Madison SMSA Tower Holdings LLC – 4.938% interest

Oklahoma
City SMSA Limited Partnership – 14.6% interest

Oklahoma City SMSA Tower Holdings LLC – 14.6% interest

Pennsylvania RSA 1 Limited Partnership – 9.80% interest

Pennsylvania RSA No. 6(I) Limited Partnership – 8.17% interest

Pennsylvania RSA No. 6(II) Limited Partnership – 8.17% interest

Redding
MSA Limited Partnership – 2.9% interest

Texas RSA 6 Limited Partnership – 13.5% interest

Texas RSA 6 Tower Holdings, LP – 13.5% interest

Venus Cellular Telephone Company, Inc. – 49% interest

 

 

 

 

 

 

	
  Exhibit
  21 to U.S. Cellular's 10-K for the period ended 12/31/13

  
	
    

  	
    

  	
    

  
	
    

  	
    

  	
  Exhibit 21

  
	
  UNITED STATES CELLULAR
  CORPORATION

  
	
  SUBSIDIARY COMPANIES

  
	
  December 31, 2013

  
	
    

  	
    

  	
    

  
	
  SUBSIDIARY COMPANIES

  	
    

  	
  STATE OF ORGANIZATION

  
	
    

  	
    

  	
    

  
	
  BANGOR CELLULAR TELEPHONE, L.P.

  	
    

  	
  DELAWARE

  
	
  BARAT WIRELESS, INC.

  	
    

  	
  DELAWARE

  
	
  BARAT WIRELESS, L.P.

  	
    

  	
  DELAWARE

  
	
  CALIFORNIA RURAL SERVICE AREA #1, INC.

  	
    

  	
  CALIFORNIA

  
	
  CARROLL PCS, INC.

  	
    

  	
  DELAWARE

  
	
  CARROLL WIRELESS, L.P.

  	
    

  	
  DELAWARE

  
	
  CEDAR RAPIDS CELLULAR TELEPHONE, L.P.

  	
    

  	
  DELAWARE

  
	
  CELLVEST, INC.

  	
    

  	
  DELAWARE

  
	
  CENTRAL CELLULAR TELEPHONES, LTD.

  	
    

  	
  ILLINOIS

  
	
  CHAMPLAIN CELLULAR, INC.

  	
    

  	
  NEW YORK

  
	
  COMMUNITY CELLULAR TELEPHONE COMPANY

  	
    

  	
  TEXAS

  
	
  CROWN POINT CELLULAR, INC.

  	
    

  	
  NEW YORK

  
	
  DUBUQUE CELLULAR TELEPHONE, L.P.

  	
    

  	
  DELAWARE

  
	
  EASTERN NORTH CAROLINA CELLULAR JOINT VENTURE

  	
    

  	
  DELAWARE

  
	
  HARDY CELLULAR TELEPHONE COMPANY

  	
    

  	
  DELAWARE

  
	
  HUMPHREYS COUNTY CELLULAR, INC.

  	
    

  	
  DELAWARE

  
	
  INDIANA RSA # 5, INC.

  	
    

  	
  INDIANA

  
	
  INDIANA RSA NO. 4 LIMITED PARTNERSHIP

  	
    

  	
  INDIANA

  
	
  INDIANA RSA NO. 5 LIMITED PARTNERSHIP

  	
    

  	
  INDIANA

  
	
  IOWA RSA # 3, INC.

  	
    

  	
  DELAWARE

  
	
  IOWA RSA # 9, INC.

  	
    

  	
  DELAWARE

  
	
  IOWA RSA # 12, INC.

  	
    

  	
  DELAWARE

  
	
  JACKSONVILLE CELLULAR PARTNERSHIP

  	
    

  	
  NORTH CAROLINA

  
	
  JACKSONVILLE CELLULAR TELEPHONE COMPANY

  	
    

  	
  NORTH CAROLINA

  
	
  KANSAS #15 LIMITED PARTNERSHIP 

  	
    

  	
  DELAWARE

  
	
  KENOSHA CELLULAR TELEPHONE, L.P.

  	
    

  	
  DELAWARE

  
	
  MADISON CELLULAR TELEPHONE COMPANY

  	
    

  	
  WISCONSIN

  
	
  MAINE RSA # 1, INC.

  	
    

  	
  MAINE

  
	
  MAINE RSA # 4, INC.

  	
    

  	
  MAINE

  
	
  MCDANIEL CELLULAR TELEPHONE COMPANY

  	
    

  	
  DELAWARE

  
	
  MINNESOTA INVCO OF RSA # 7, INC.

  	
    

  	
  DELAWARE

  
	
  NEWPORT CELLULAR, INC.

  	
    

  	
  NEW YORK

  
	
  NH #1 RURAL CELLULAR, INC.

  	
    

  	
  NEW HAMPSHIRE

  
	
  NORTH CAROLINA RSA 1 PARTNERSHIP

  	
    

  	
  DELAWARE

  
	
  OREGON RSA #2, INC.

  	
    

  	
  OREGON

  
	
  PCS WISCONSIN, LLC

  	
    

  	
  WISCONSIN

  
	
  RACINE CELLULAR TELEPHONE COMPANY

  	
    

  	
  WISCONSIN

  
	
  TENNESSEE NO. 3, LIMITED PARTNERSHIP

  	
    

  	
  TENNESSEE

  
	
  TEXAHOMA CELLULAR LIMITED PARTNERSHIP

  	
    

  	
  TEXAS

  
	
  TEXAS INVCO OF RSA # 6, INC.

  	
    

  	
  DELAWARE

  
	
  TOWNSHIP CELLULAR TELEPHONE, INC.

  	
    

  	
  DELAWARE

  
	
  UNITED STATES CELLULAR INVESTMENT CO. OF OKLAHOMA CITY,
  INC.

  	
    

  	
  OKLAHOMA

  
	
  UNITED STATES CELLULAR INVESTMENT COMPANY, LLC

  	
    

  	
  DELAWARE

  
	
  UNITED STATES CELLULAR INVESTMENT CORPORATION OF LOS
  ANGELES

  	
    

  	
  INDIANA

  
	
  UNITED STATES CELLULAR OPERATING COMPANY LLC

  	
    

  	
  DELAWARE

  
	
  UNITED STATES CELLULAR OPERATING COMPANY OF BANGOR

  	
    

  	
  MAINE

  
	
  UNITED STATES CELLULAR OPERATING COMPANY
  OF CEDAR RAPIDS

  	
    

  	
  DELAWARE

  
	
  UNITED STATES CELLULAR OPERATING COMPANY OF CHICAGO, LLC

  	
    

  	
  DELAWARE

  
	
  UNITED STATES CELLULAR OPERATING COMPANY OF DUBUQUE

  	
    

  	
  IOWA

  
	
  UNITED STATES CELLULAR OPERATING COMPANY OF KNOXVILLE

  	
    

  	
  TENNESSEE

  
	
  UNITED STATES CELLULAR OPERATING COMPANY OF MEDFORD

  	
    

  	
  OREGON

  
	
  UNITED STATES CELLULAR OPERATING COMPANY OF YAKIMA

  	
    

  	
  WASHINGTON

  
	
  UNITED STATES CELLULAR TELEPHONE COMPANY (GREATER
  KNOXVILLE), L.P.

  	
    

  	
  TENNESSEE

  
	
  USCC DISTRIBUTION CO., LLC

  	
    

  	
  DELAWARE

  
	
  USCC FINANCIAL L.L.C.

  	
    

  	
  ILLINOIS

  
	
  USCC PURCHASE, LLC

  	
    

  	
  DELAWARE

  
	
  USCC REAL ESTATE CORPORATION

  	
    

  	
  DELAWARE

  
	
  USCC SERVICES, LLC

  	
    

  	
  DELAWARE

  
	
  USCC WIRELESS INVESTMENT, INC.

  	
    

  	
  DELAWARE

  
	
  USCCI CORPORATION

  	
    

  	
  DELAWARE

  
	
  USCIC OF FRESNO

  	
    

  	
  CALIFORNIA

  
	
  USCIC OF NORTH CAROLINA RSA # 1, INC.

  	
    

  	
  DELAWARE

  
	
  USCOC NEBRASKA/KANSAS, INC.

  	
    

  	
  DELAWARE

  
	
  USCOC NEBRASKA/KANSAS, LLC

  	
    

  	
  DELAWARE

  
	
  USCOC OF CENTRAL ILLINOIS, LLC

  	
    

  	
  ILLINOIS

  
	
  USCOC OF CHICAGO REAL ESTATE HOLDINGS, LLC

  	
    

  	
  DELAWARE

  
	
  USCOC OF CUMBERLAND, LLC

  	
    

  	
  DELAWARE

  
	
  USCOC OF GREATER IOWA, LLC

  	
    

  	
  DELAWARE

  
	
  USCOC OF GREATER MISSOURI, LLC

  	
    

  	
  DELAWARE

  
	
  USCOC OF GREATER NORTH CAROLINA, LLC

  	
    

  	
  DELAWARE

  
	
  USCOC OF GREATER OKLAHOMA, LLC

  	
    

  	
  OKLAHOMA

  
	
  USCOC OF JACK/WIL, INC.

  	
    

  	
  DELAWARE

  
	
  USCOC OF JACKSONVILLE, LLC

  	
    

  	
  DELAWARE

  
	
  USCOC OF LACROSSE, LLC

  	
    

  	
  WISCONSIN

  
	
  USCOC OF OREGON RSA # 5, INC.

  	
    

  	
  DELAWARE

  
	
  USCOC OF PENNSYLVANIA RSA NO. 10-B2, INC.

  	
    

  	
  DELAWARE

  
	
  USCOC OF RICHLAND, INC.

  	
    

  	
  WASHINGTON

  
	
  USCOC OF ROCHESTER, INC.

  	
    

  	
  DELAWARE

  
	
  USCOC OF SOUTH CAROLINA RSA # 4, INC.

  	
    

  	
  SOUTH CAROLINA

  
	
  USCOC OF TEXAHOMA, INC. 

  	
    

  	
  TEXAS

  
	
  USCOC OF VIRGINIA RSA # 3, INC.

  	
    

  	
  VIRGINIA

  
	
  USCOC OF WASHINGTON-4, INC.

  	
    

  	
  DELAWARE

  
	
  USCOC OF WILMINGTON, LLC

  	
    

  	
  DELAWARE

  
	
  VERMONT RSA NO. 2-B2, INC.

  	
    

  	
  DELAWARE

  
	
  WASHINGTON RSA # 5, INC.

  	
    

  	
  WASHINGTON

  
	
  WESTELCOM CELLULAR, INC.

  	
    

  	
  NEW YORK

  
	
  WESTERN SUB-RSA LIMITED PARTNERSHIP

  	
    

  	
  DELAWARE

  
	
  WILMINGTON CELLULAR PARTNERSHIP

  	
    

  	
  NORTH CAROLINA

  
	
  WILMINGTON CELLULAR TELEPHONE COMPANY

  	
    

  	
  NORTH CAROLINA

  
	
  YAKIMA MSA LIMITED PARTNERSHIP

  	
    

  	
  DELAWARE

  
	
    

  	
    

  	
    

  
	
  OTHER ENTITIES CONSOLIDATED IN
  ACCORDANCE WITH GAAP

  	
    

  	
    

  
	
  AQUINAS WIRELESS, L.P.

  	
    

  	
  DELAWARE

  
	
  KING STREET WIRELESS, L.P.

  	
    

  	
  DELAWARE

  
	
  KING STREET WIRELESS, INC.

  	
    

  	
  DELAWARE

  

 

 

 

 

 

 

 

 

 

SCHEDULE 7.01

UNITED STATES CELLULAR CORPORATION

EXISTING LIENS

 

NONE

 

 

 

 

 

 

SCHEDULE 7.03

 

	
  EXISTING INDEBTEDNESS

  
	
    

  	
    

  	
  As of Closing

  Date (1)

  	
    

  
	
    

  	
    

  	
  (Dollars in thousands)

  	
    

  
	
  U.S. Cellular
  Subsidiaries—

  	
    

  	
    

  	
    

  
	
    

  	
  Obligation on
  capital leases of Subsidiaries

  	
    

  	
  $ 2,149 

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
  Total debt

  	
    

  	
  2,149 

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Surety bonds of
  Subsidiaries

  	
    

  	
  11,988 

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
  Total
  indebtedness

  	
    

  	
  $ 14,137.00 

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
  (1) The
  balances as of December 31, 2014 have been used as a proxy to the Closing
  Date amounts.  There have been no substantive changes from December 31, 2014
  to the Closing Date.

  

 

With
respect to the Special Entities King Street Wireless, L.P., Aquinas Wireless,
L.P. and Advantage Spectrum, L.P. which are limited partnerships identified on
Schedule 1.01, USCC Wireless Investment, Inc., as a limited partner, is
obligated to purchase the partnership interest of the respective general
partner upon the exercise by such general partner of its right to require the
limited partner to purchase such interest (the “Purchase Obligation”).  With
respect to King Street Wireless, L.P., Aquinas Wireless, L.P., United States
Cellular Corporation and the sole shareholder of each general partner, Allison
DiNardo, have entered into an Investment Agreement pursuant to which United
States Cellular Corporation has agreed to take “all necessary action to ensure
that all of USCC Wireless’ covenants” in the applicable partnership agreement
“are performed,” including each Purchase Obligation.  Thus, United States
Cellular Corporation has guaranteed USCC Wireless’ payment obligation under the
Purchase Obligation.  There is no similar investment agreement with respect to
Advantage Spectrum, L.P.  The value of the Purchase Obligation as reported in
the Borrower’s Form 10-Q for the quarterly period ended September 30, 2014 was
$1,007,000.

 

 

 

 

 

 

 

 

SCHEDULE 7.07

EXISTING AFFILIATE TRANSACTIONS*

Farmers Cellular Telephone
Company, Inc. – 49% interest

 

- Connection and Switch Sharing Agreement dated
February 15, 1990 between USCOC of Greater Iowa, LLC (as successor to The SEG
Cellular Limited Partnership) and Farmers Cellular Telephone Company.  [Expired
February 15, 2013 and automatically renews for successive 3 year terms unless
terminated.]

 

- Management Agreement dated September 17, 1996
between United States Cellular Corporation and Farmers Cellular Telephone Company,
Inc., including First Amendment dated October 1, 2003.  Second Amendment
effective September 30, 2010.  [Expires September 30, 2017 but may be
terminated earlier on 1 year’s notice.]

 

- Tower Lease dated January 16, 2002 between United
States Cellular Corporation and Farmers Cellular Telephone Company, Inc. 
[Expired January 15, 2012, but continuing month-to-month.] 

 

- Intercarrier Roamer Service Agreement dated January
21, 1998 between United States Cellular Corporation and Farmers Cellular
Telephone Company, Inc., including First Amendment dated January 24, 2000 and
Second Amendment dated July 16, 2001. [Perpetual but may be terminated on 30
days’ notice.]

 

- Spectrum Manager Lease Agreement
for Ottumwa, Iowa (BTA 337) (Block PCS E-Block) dated August 13, 2012 between
USCOC of Greater Iowa, LLC and Farmers Cellular Telephone Company, Inc. 
[Expires April 28, 2017.]

- Spectrum Manager Lease
Agreement for Monroe, Iowa (RSA 3) (700 MHz C-Block) dated August 13, 2012
between USCOC of Greater Iowa, LLC and Farmers Cellular Telephone Company,
Inc.  [Expires June 13, 2019.]

Iowa RSA No. 9 Limited Partnership – 15.001% interest

 

- Management Agreement dated August 15, 1989 between
United States Cellular Corporation and Iowa RSA No. 9 Limited Partnership,
including First Amendment dated August 15, 1996 and Second Amendment dated
August 15, 1999.  [Perpetual but may be terminated on 6 months’ notice.]

 

Iowa RSA No. 12 Limited Partnership – 24.5% interest

 

- Connection and Switch Sharing Agreement dated
October 1, 1990 between United States Cellular Operating Company of Cedar
Rapids (as successor to Iowa Cellular, Inc.) and Iowa RSA No. 12 Limited
Partnership. [Expired October 1, 2013 and automatically renews for successive 3
year terms unless terminated.]

 

- Connection and Transport Agreement dated October 1,
1990 between United States Cellular Operating Company of Dubuque and Iowa RSA
No. 12 Limited Partnership. [Expired October 1, 2013 and automatically renews
for successive 3 year terms unless terminated.]

 

- Management Agreement dated May 31, 1989 between
United States Cellular Corporation and Iowa RSA No. 12 Limited Partnership,
including First Amendment dated June 1, 1996, Second Amendment dated May 31,
2003 and Third Amendment dated May 31, 2010.  [Expires May 31, 2017.]

 

 

 

*  Each agreement on this
Schedule 7.07 was made on an arms-length basis.

 

 

 

 

SCHEDULE 10.02

ADMINISTRATIVE AGENT'S OFFICE;

CERTAIN ADDRESSES FOR NOTICES

BORROWER:

UNITED STATES CELLULAR CORPORATION

c/o Telephone and Data Systems, Inc. (“TDS”)

30 N. LaSalle, Suite 4000

Chicago, IL 60602

Attention:  Peter L. Sereda, Senior Vice President - Finance and Treasurer of
TDS

Telephone: 312-592-5308                                                                                                  

Facsimile: 608-830-5530

Electronic Mail:  peter.sereda@tdsinc.com

With
a copy to (which shall not constitute notice)

UNITED STATES CELLULAR
CORPORATION 

8410 West Bryn Mawr Avenue

Chicago, Illinois  60631

Attention:  Steven T. Campbell, Executive Vice President – Finance, Chief
Financial Officer and Treasurer

Telephone:
773-399-4850                                                                                                

Facsimile: 773-399-8959

Electronic Mail:  steve.campbell@uscellular.com

Website Address:  www.uscellular.com

U.S. Taxpayer Identification Number: 62-1147325

 

and

SIDLEY
AUSTIN LLP

One S. Dearborn Street

Chicago, Illinois  60603

Attention:  Stephen P. Fitzell, General Counsel of U.S. Cellular

Telephone:  (312) 853-7379

Facsimile:   (312) 853-7036

Electronic Mail:  sfitzell@sidley.com

and

SIDLEY
AUSTIN LLP

One S. Dearborn Street

Chicago, Illinois  60603

Attention:  William S. DeCarlo, General Counsel of TDS

Telephone:  (312) 853-6094

Facsimile:   (312) 853-7036

Electronic Mail:  wdecarlo@sidley.com

 

 

 

 

ADMINISTRATIVE AGENT:

COBANK, ACB

5500 South Quebec Street

Greenwood Village, Colorado
80111

Attention:  Communications
Banking Group

Telephone (303) 740-4000

Telecopy (303) 224-2718

 

With a copy to (which shall not
constitute notice)

 

COBANK, ACB

5500 South Quebec Street

Greenwood Village, Colorado
80111

Attention: Syndication Loan Accounting

Fax No.: (303) 740-4021

Telephone No.: (303) 740-6447

E-Mail:  agency@cobank.com

 

 

 

 

SCHEDULE 10.06

VOTING PARTICIPANTS

1.      
1st Farm Credit
Services, FLCA 

2.      
AgChoice Farm Credit, ACA, on
behalf of itself and its wholly-owned subsidiaries, AgChoice Farm Credit, FLCA,
and AgChoice Farm Credit, PCA 

3.      
AgFirst Farm Credit Bank 

4.      
AgStar Financial Services, FLCA 

5.      
American AgCredit, FLCA 

6.      
Badgerland Financial, FLCA

7.      
Farm Credit Bank of Texas

8.      
Farm Credit Mid-America, FLCA

9.      
Farm Credit West, FLCA 

10.   
Farm Credit Services of America,
FLCA 

11.   
GreenStone Farm Credit ACA/FLCA

12.   
MidAtlantic Farm Credit, FLCA 

13.   
United FCS, FLCA d/b/a FCS
Commercial Finance Group

 

 

 

 

EXHIBIT A

FORM OF COMMITTED LOAN NOTICE

Date:  ___________, 20__

To:          CoBank, ACB, as Administrative Agent

Ladies and Gentlemen:

Reference is made to that certain Credit
Agreement, dated as of January 21, 2015 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the "Agreement;" 
the terms defined therein being used herein as therein defined), among United
States Cellular Corporation, a Delaware corporation (the "Borrower"),
CoBank, ACB, as Administrative Agent and a Lender and the Lenders from time to
time party thereto. 

The undersigned hereby requests (select
one):

 ̈  A Borrowing of Committed Loans             ̈   A conversion or continuation of Loans

1.             On _________________________________ (a Business Day).

2.             In the amount of $__________________.

3.             Comprised of _________________________.  [Type of
Committed Loan requested]

4.             For Eurodollar Rate Loans:  with an Interest Period of
_______ months.

The Committed Borrowing, if any, requested
herein complies with the provisos to the first sentence of Section 2.01
of the Agreement.  

 

	
    

  	
    

  	
  UNITED STATES
  CELLULAR CORPORATION

  
	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
  Name:

  	
    

  
	
    

  	
    

  	
  Title:

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
  Name:

  	
    

  
	
    

  	
    

  	
  Title:

  	
    

  

 

 

 

 

 

EXHIBIT B

FORM OF NOTE

_____________, 20__

FOR VALUE RECEIVED, the undersigned (the
"Borrower") hereby promises to pay to
_____________________ or its registered assigns (the "Lender"),
in accordance with the provisions of the Agreement (as hereinafter defined),
the principal amount of each Loan from time to time made by the Lender to the
Borrower under that certain Credit Agreement, dated as of January 21, 2015 (as
amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the "Agreement;" the terms defined
therein being used herein as therein defined), among the Borrower, CoBank, ACB,
as the Administrative Agent and a Lender and the Lenders from time to time
party thereto.

The Borrower promises to pay interest on
the unpaid principal amount of each Loan from the date of such Loan until such
principal amount is paid in full, at such interest rates and at such times as
provided in the Agreement.  All payments of principal and interest shall be
made to the Administrative Agent for the account of the Lender in Dollars in
immediately available funds at the Administrative Agent's
Office.  If any amount is not paid in full when due hereunder, such unpaid
amount shall bear interest, to be paid upon demand, from the due date thereof
until the date of actual payment (and before as well as after judgment)
computed at the per annum rate set forth in the Agreement.

This Note is one of the Notes referred to
in the Agreement, is entitled to the benefits thereof and may be prepaid in
whole or in part subject to the terms and conditions provided therein.  Upon
the occurrence and continuation of one or more of the Events of Default
specified in the Agreement, all amounts then remaining unpaid on this Note
shall become, or may be declared to be, immediately due and payable all as
provided in the Agreement.  Loans made by the Lender shall be evidenced by one
or more loan accounts or records maintained by the Lender in the ordinary
course of business. The Lender may also attach schedules to this Note and
endorse thereon the date, amount and maturity of its Loans and payments with
respect thereto.

The Borrower, for itself, its successors
and assigns, hereby waives diligence, presentment, protest and demand and
notice of protest, demand, dishonor and non-payment of this Note.

THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF NEW YORK. 

 

	
    

  	
    

  	
  UNITED STATES
  CELLULAR CORPORATION

  
	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
  Name:

  	
    

  
	
    

  	
    

  	
  Title:

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
  Name:

  	
    

  
	
    

  	
    

  	
  Title:

  	
    

  

 

 

 

 

 

LOANS AND PAYMENTS

WITH RESPECT THERETO

 

	
  Date

  	
  Amount of Loan Made

  	
  End of Interest Period

  	
  Amount of Principal or Interest Paid This Date

  	
  Outstanding Principal Balance This Date

  	
  Notation Made By

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  	
  ________

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

 

EXHIBIT C

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date:  _____________, 20___

To:          CoBank, ACB, as Administrative Agent

Ladies and Gentlemen:

Reference is made to that certain Credit
Agreement, dated as of January 21, 2015 (as amended, restated, extended,
supplemented or otherwise modified in writing from time to time, the "Agreement;"
the terms defined therein being used herein as therein defined), among United
States Cellular Corporation, a Delaware corporation (the "Borrower"),
CoBank, ACB, as Administrative Agent and a Lender and the Lenders from time to
time party thereto.

The undersigned Responsible Officer hereby
certifies as of the date hereof that he/she is the                                                                                                            of
the Borrower, and that, as such, he/she is authorized to execute and deliver
this Certificate to the Administrative Agent on the behalf of the Borrower, and
that:

[Use following paragraph 1 for fiscal year-end 
financial statements]

1.             The Borrower has delivered
the year-end audited financial statements required by Section 6.01(a) of
the Agreement for the fiscal year of the Borrower ended as of the above date,
together with the report and opinion of an independent certified public
accountant required by such section.

[Use following paragraph 1 for fiscal quarter-end 
financial statements]

1.             The Borrower has delivered
the unaudited financial statements required by Section 6.01(b) of the
Agreement for the fiscal quarter of the Borrower ended as of the above date. 
Such financial statements fairly present in all material respects the financial
condition of the Borrower and its Subsidiaries in accordance with GAAP as of
the date thereof and their results of operations and cash flows of the Borrower
and its Subsidiaries for the period covered thereby, subject only to normal
year-end audit adjustments and the absence of footnotes.

2.             The undersigned has
reviewed and is familiar with the terms of the Agreement and has made, or has
caused to be made under his/her supervision, a detailed review of the
transactions and condition (financial or otherwise) of the Borrower during the
accounting period covered by such financial statements.

3.             A review of the activities
of the Borrower during such fiscal period has been made under the supervision
of the undersigned with a view to determining whether during such fiscal period
the Borrower performed and observed all its Obligations under the Loan Documents,
and

 

 

 

 

[select one:]

1.                  
[as of the date of this
certificate, to the best knowledge of the undersigned, during such fiscal
period the Borrower performed and observed each covenant and condition of the
Loan Documents applicable to it, and no Default has occurred and is
continuing.]

--or--

2.                  
[as of the date of this
certificate, to the best knowledge of the undersigned, during such fiscal
period the following covenants or conditions have not been performed or
observed and the following is a list of each such Default and its nature and
status:]

4.             The financial covenant
analyses and information set forth on Schedules 1 and 2  attached
hereto are true and accurate in all material respects on and as of the date of
this Certificate.

IN WITNESS WHEREOF, the
undersigned has executed this Certificate as 

of                                            ,                                . 

 

	
    

  	
    

  	
  UNITED STATES
  CELLULAR CORPORATION

  
	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
  Name:

  	
    

  
	
    

  	
    

  	
  Title:

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
  Name:

  	
    

  
	
    

  	
    

  	
  Title:

  	
    

  

 

 

 

 

 

SCHEDULE 1

to the Compliance Certificate

($ in 000's) 

For the Quarter/Year ended ___________________ ("Statement
Date") 

	
  I.

  	
  Section 7.10(a) – Consolidated Interest Coverage
  Ratio.

  	
   

  
	
   

  	
  A.

  	
  Consolidated EBITDA for four consecutive fiscal
  quarters ending on above date ("Subject Period"): 

  	
   

  
	
   

  	
   

  	
  1.

  	
  Consolidated Net Income for the Subject
  Period:

  	
  $____________

  
	
   

  	
   

  	
  2.

  	
  Distributions received from
  unconsolidated subsidiaries (to the extent not already included in
  Consolidated Net Income):

  	
   

   

  $____________

  
	
   

  	
   

  	
  3.

  	
  To the extent deducted from
  Consolidated Net Income, Consolidated Interest Charges for the Subject
  Period:

  	
   

  $____________

  
	
   

  	
   

  	
  4.

  	
  To the extent deducted from
  Consolidated Net Income, provision for income taxes for the Subject Period
  (net of any income tax credits for the Subject Period):

  	
   

   

  $____________

  
	
   

  	
   

  	
  5.

  	
  To the extent deducted from
  Consolidated Net Income, depreciation, amortization and accretion expenses
  for the Subject Period:

  	
   

   

  $____________

  
	
   

  	
   

  	
  6.

  	
  All other reductions of Consolidated
  Net Income for Subject Period which do not represent a cash item during the
  Subject Period:

  	
   

   

  $____________

  
	
   

  	
   

  	
  7.

  	
  All previous non-cash items deducted
  from Consolidated EBITDA pursuant to Line 8 below in a prior subject period
  which have become cash received items in the Subject Period:

  	
   

   

   

  $____________

  
	
   

  	
   

  	
  8.

  	
  All non-cash additions to Consolidated
  Net Income for the Subject Period:

  	
   

  $____________

  
	
   

  	
   

  	
  9.

  	
  All previous non-cash items added to
  Consolidated EBITDA pursuant to Line 6 above in a prior subject period which
  have become cash paid items in the Subject Period: 

  	
   

   

  $____________

  
	
   

  	
   

  	
  10.

  	
  Consolidated EBITDA 

  (Lines I.A.1 + 2 + 3 + 4 + 5 + 6 + 7 – 8 – 9):

  	
   

  $____________

  

 

 

 

 

 

	
   

  	
  B.

  	
  Consolidated Interest Charges for
  Subject Period:

  	
  $____________

  
	
   

  	
  C.

  	
  Consolidated Interest Coverage Ratio 

  (Line I.A.10  ̧  Line I.B):

  	
  

  

   

  $____________

  
	
   

  	
   

  	
   

  Minimum required:

  	
   

  3.00 to 1

  
	
   

  	
   

  	
   

  	
   

  
	
  II.

  	
  Section 7.10(b) – Consolidated Leverage Ratio.

  	
   

  
	
   

  	
  A.

  	
  Consolidated Funded Indebtedness at
  Statement Date:

  	
  $____________

  
	
   

  	
  B.

  	
  Consolidated EBITDA for Subject Period
  (Line I.A.10 above):

  	
  $____________

  
	
   

  	
  C.

  	
  Consolidated Leverage Ratio (Line II.A  ̧  Line II.B):

  	
  $____________

  

 

Maximum Permitted: 

 

	
  Period

  	
  Ratio

  
	
  From the Closing Date
  through December 31, 2015

  	
  3.75:1.00

  
	
  From January 1, 2016 through
  June 30, 2016

  	
  3.50:1.00

  
	
  From July 1, 2016 through
  December 31, 2016

  	
  3.25:1.00

  
	
  From January 1, 2017 and
  thereafter 

  	
  3.00:1.00

  

 

 

 

 

 

 

 

 

SCHEDULE 2

to the Compliance Certificate 

($ in 000's) 

For the Quarter/Year ended ___________________ ("Statement
Date") 

Consolidated EBITDA

(in accordance with the definition of
Consolidated EBITDA

as set forth in the Agreement)

	
  Consolidated

  EBITDA

  	
  

  Quarter

  Ended

  __________

  	
  

  Quarter

  Ended

  __________

  	
  

  Quarter

  Ended

  __________

  	
  

  Quarter

  Ended

  __________

  	
  Twelve Months

  Ended

  __________

  
	
  Consolidated

  Net Income

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  +  Consolidated Interest Charges

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  +  income taxes (net of any income tax credits)

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  +  depreciation expense

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  +  amortization expense

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  +  accretion expense

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  +  all other non-cash deductions

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  +  all previous non-cash items deducted from
  Consolidated EBITDA in a prior subject period which have become cash received
  items in the Subject Period

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  -   non-cash income

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  -   all previous non-cash items added to
  Consolidated EBITDA in a prior subject period which have become cash paid
  items in the Subject Period 

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  =  Consolidated EBITDA

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

 

 

 

 

EXHIBIT D-1

ASSIGNMENT AND ASSUMPTION

This Assignment and Assumption (this
"Assignment and Assumption") is dated as of the
Effective Date set forth below and is entered into by and between [the][each]1
Assignor identified in item 1 below ([the][each, an] "Assignor")
and [the][each]  Assignee identified in item 2 below ([the][each, an]
"Assignee").  [It is understood and agreed that the
rights and obligations of [the Assignors][the Assignees]2 hereunder are several and not joint.]3 Capitalized terms used but not defined herein shall
have the meanings given to them in the Credit Agreement identified below (the
"Credit Agreement"), receipt of a copy of which is
hereby acknowledged by the Assignee.  The Standard Terms and Conditions set
forth in Annex 1 attached hereto are hereby agreed to and incorporated herein
by reference and made a part of this Assignment and Assumption as if set forth
herein in full.

For an agreed consideration, [the][each] 
Assignor hereby irrevocably sells and assigns to [the Assignee][the
respective Assignees], and [the][each]  Assignee hereby irrevocably
purchases and assumes from [the Assignor][the respective Assignors],
subject to and in accordance with the Standard Terms and Conditions and the
Credit Agreement, as of the Effective Date inserted by the Administrative Agent
as contemplated below (i) all of [the Assignor's][the respective Assignors']
rights and obligations in [its capacity as a Lender][their respective
capacities as Lenders] under the Credit Agreement and any other documents
or instruments delivered pursuant thereto to the extent related to the amount
and percentage interest identified below of all of such outstanding rights and
obligations of [the Assignor][the respective Assignors] under the
facilities identified below and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any
other right of [the Assignor (in its capacity as a Lender)][the respective
Assignors (in their respective capacities as Lenders)] against any Person,
whether known or unknown, arising under or in connection with the Credit
Agreement, any other documents or instruments delivered pursuant thereto or the
loan transactions governed thereby or in any way based on or related to any of
the foregoing, including, but not limited to, contract claims, tort claims,
malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to subsection (i)
above (the rights and obligations sold and assigned by [the][any] 
Assignor to [the][any]  Assignee pursuant to subsections (i) and
(ii) above being referred to herein collectively as [the][an]  "Assigned
Interest").  Each such sale and assignment is without recourse to [the][any] 
Assignor and, except as expressly provided in this Assignment and Assumption,
without representation or warranty by [the][any]  Assignor.

1.             Assignor[s]:           ______________________________

                                ______________________________

_________________________

1       For
bracketed language here and elsewhere in this form relating to the Assignee(s),
if the assignment is to a single Assignee, choose the first bracketed
language.  If the assignment is to multiple Assignees, choose the second bracketed
language.

2       Select
as appropriate.

3       Include
bracketed language if there are either multiple Assignors or multiple
Assignees.

 

 

 

 

 

2.             Assignee[s]:           ______________________________

                                ______________________________

[for each Assignee, indicate [Affiliate][Approved
Fund] of [identify Lender]] 

3.             Borrower:              United States Cellular
Corporation

4.             Administrative Agent:  CoBank, ACB, as the
administrative agent under the Credit Agreement

5.             Credit Agreement:  Credit Agreement, dated as of
January 21, 2015, among United States Cellular Corporation, CoBank, ACB, as
Administrative Agent and a Lender and the Lenders from time to time party
thereto.

6.             Assigned Interest[s]: 

	
  Assignor[s]4

  	
  Assignee[s]5

  	
  Facility

  Assigned

  	
  Aggregate

  Amount of

  Commitment

  for all Lenders6

  	
  Amount of

  Commitment

  Assigned

  	
  Percentage

  Assigned of

  Commitment7

  	
  CUSIP

  Number

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  __________

  	
  $____________

  	
  $______

  	
  _________%

  	
   

  
	
   

  	
   

  	
  __________

  	
  $____________

  	
  $______

  	
  _________%

  	
   

  
	
   

  	
   

  	
  __________

  	
  $____________

  	
  $______

  	
  _________%

  	
   

  

 

[7.           Trade Date:         __________________]8

Effective Date:  __________________, 20__ [TO BE
INSERTED BY ADMINISTRATIVE AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF
RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.]

 

_________________________

4       List
each Assignor, as appropriate.

5       List
each Assignee, as appropriate.

6       Amounts
in this column and in the column immediately to the right to be adjusted by the
counterparties to take into account any payments or prepayments made between
the Trade Date and the Effective Date.

7       Set
forth, to at least 9 decimals, as a percentage of the Commitment of all Lenders
thereunder.

8       To
be completed if the Assignor and the Assignee intend that the minimum
assignment amount is to be determined as of the Trade Date.

 

 

 

 

The
terms set forth in this Assignment and Assumption are hereby agreed to:

 

	
    

  	
    

  	
  ASSIGNOR

  
	
    

  	
    

  	
    

  
	
    

  	
    

  	
  [NAME OF
  ASSIGNOR]

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
  Title:

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  ASSIGNEE

  
	
    

  	
    

  	
    

  
	
    

  	
    

  	
  [NAME OF
  ASSIGNEE]

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
  Title:

  	
    

  

 

[Consented to and]9 Accepted:

COBANK, ACB,

as Administrative Agent

By:                                                                          

Title:                                                                        

 

[Consented to:]10

By:
                                                                         

Title:
                                                                       

 

 

_________________________

9       To
be added only if the consent of the Administrative Agent is required by the
terms of the Credit Agreement.

10     To
be added only if the consent of the Borrower and/or other parties is required
by the terms of the Credit Agreement.

 

 

 

 

 

ANNEX 1 TO
ASSIGNMENT AND ASSUMPTION

[___________________] 11

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

1.             Representations and
Warranties. 

1.1.         Assignor.  [The][Each] 
Assignor (a) represents and warrants that (i) it is the legal and beneficial
owner of [the][the relevant] Assigned Interest, (ii) [the][such] 
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or any other
Loan Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Documents or any collateral
thereunder, (iii) the financial condition of the Borrower, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any Loan
Document or (iv) the performance or observance by the Borrower, any of its
Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Loan Document.

1.2.         Assignee.  [The][Each] 
Assignee (a) represents and warrants that (i) it has full power and authority,
and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become
a Lender under the Credit Agreement, (ii) it meets all the requirements to be
an assignee under Section 10.06(b)(iii), (v)  and (vi)  of
the Credit Agreement (subject to such consents, if any, as may be required
under Section 10.06(b)(iii) of the Credit Agreement), (iii) from and
after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of [the][the relevant]
Assigned Interest, shall have the obligations of a Lender thereunder, (iv) it
is sophisticated with respect to decisions to acquire assets of the type
represented by [the][such]  Assigned Interest and either it, or the
Person exercising discretion in making its decision to acquire [the][such] 
Assigned Interest, is experienced in acquiring assets of such type, (v) it has
received a copy of the Credit Agreement, and has received or has been accorded
the opportunity to receive copies of the most recent financial statements
delivered pursuant to Section 6.01 thereof, as applicable, and such
other documents and information as it deems appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase [the][such]  Assigned Interest, (vi) it has, independently and
without reliance upon the Administrative 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 Assignment and Assumption and to
purchase [the][such]  Assigned Interest, and (vii) if it is a Foreign
Lender, attached hereto is any documentation required to be delivered by it
pursuant to the terms of the Credit Agreement, duly completed and executed by [the][such] 
Assignee; and (b) agrees that (i) it will, independently and without reliance
upon the Administrative Agent, [the][any]  Assignor or any other Lender,
and based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Loan Documents are
required to be performed by it as a Lender.

2.             Payments.  From and
after the Effective Date, the Administrative Agent shall make all payments in
respect of [the][each]  Assigned Interest (including payments of
principal, interest, fees and other amounts) to [the][the relevant]
Assignor for amounts which have accrued to but excluding the Effective Date and
to [the][the relevant] Assignee for amounts which have accrued from and
after the Effective Date.

3.             General Provisions. 
This Assignment and Assumption shall be binding upon, and inure to the benefit
of, the parties hereto and their respective successors and assigns.  This
Assignment and Assumption may be executed in any number of counterparts, which
together shall constitute one instrument.  Delivery of an executed counterpart
of a signature page of this Assignment and Assumption by facsimile shall be
effective as delivery of a manually executed counterpart of this Assignment and
Assumption.  This Assignment and Assumption shall be governed by, and construed
in accordance with, the law of the State of New York.

_________________________

11     Describe
Credit Agreement at option of Administrative Agent.

 

 

 

 

 

 

EXHIBIT D-2

FORM OF ADMINISTRATIVE QUESTIONNAIRE

 

[On File with Agent]

 

 

 

 

 

 

EXHIBIT E

OPINION MATTERS

The matters contained in the following
Sections of the Credit Agreement should be covered by the legal opinion:

Section 5.01(a),
(b)  and (c)  (provided that the opinion required by subsection (c)
will be limited to the Borrower and Illinois law)

Section 5.02

Section 5.03

Section 5.04

Section 5.14(b) (solely with respect to the
Borrower

 

 

 

 

EXHIBIT
F

                                                                                                                                                                                                 

SUBORDINATION AGREEMENT

dated as of January 21, 2015

-among-

TELEPHONE AND DATA SYSTEMS, INC. AND THE OTHER

SUBORDINATED CREDITORS

as Subordinated Creditors

UNITED STATES CELLULAR CORPORATION

as a Debtor

- and -

COBANK, ACB

as Administrative Agent for the Senior Creditors

                                                                                                                                                                                                

 

 

 

 

 

	
  TABLE
  OF CONTENTS

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE
  I     DEFINITIONS

  	
  1 

  
	
    

  	
  SECTION 1.1.

  	
  Definitions in
  Senior Credit Agreement....................................................................................................................................................................................... 

  	
  1 

  
	
    

  	
  SECTION 1.2.

  	
  Certain Terms.................................................................................................................................................................................................................................. 

  	
  1 

  
	
    

  	
  SECTION 1.3.

  	
  Genral
  Provisions Relating to Definitions................................................................................................................................................................................... 

  	
  8 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE
  II     CONSOLIDATED FUNDED INDEBTEDNESS SUBORDINATION ARRANGEMENTS

  	
  8 

  
	
    

  	
  SECTION 2.1.

  	
  Agreement to
  Subordinate; Addition of Subordinated Creditors and Subordinated Debt................................................................................................ 

  	
  8 

  
	
    

  	
  SECTION 2.2.

  	
  Limitations on
  Subordinated Debt Payments............................................................................................................................................................................ 

  	
  9 

  
	
    

  	
  SECTION 2.3.

  	
  Permitted Sub
  Debt Payments; etc.............................................................................................................................................................................................. 

  	
  9 

  
	
    

  	
  SECTION 2.4.

  	
  Payment
  Blockage Periods............................................................................................................................................................................................................ 

  	
  10 

  
	
    

  	
  SECTION 2.5.

  	
  Bankruptcy or
  Insolvency Proceedings...................................................................................................................................................................................... 

  	
  10 

  
	
    

  	
  SECTION 2.6.

  	
  Certain Other
  Bankruptcy Matters; etc...................................................................................................................................................................................... 

  	
  11 

  
	
    

  	
  SECTION 2.7.

  	
  Delivery of
  Prohibited Payments or Distributions on Account of Subordinated Debt....................................................................................................... 

  	
  13 

  
	
    

  	
  SECTION 2.8.

  	
  Subrogation...................................................................................................................................................................................................................................... 

  	
  13 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE
  III     LIMITATIONS ON CERTAIN ENFORCEMENT ACTIONS AND OTHER NEGATIVE
  COVENANTS

  	
  14 

  
	
    

  	
  SECTION 3.1.

  	
  Prohibitions on
  Commencement of Certain Enforcement Actions....................................................................................................................................... 

  	
  14 

  
	
    

  	
  SECTION 3.1.

  	
  Limitations on
  Remedies Under Subordinated Debt Documents.......................................................................................................................................... 

  	
  14 

  
	
    

  	
  SECTION 3.1.

  	
  Limitations on
  Liens Securing Subordinated Debt.................................................................................................................................................................... 

  	
  14 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE
  IV     WAIVERS AND CONSENTS

  	
  15 

  
	
    

  	
  SECTION 4.1.

  	
  Waivers of
  Notice; etc.................................................................................................................................................................................................................... 

  	
  15 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE
  V     ADDITIONAL REPRESENTATIONS AND OTHER COVENANTS

  	
  17 

  
	
    

  	
  SECTION 5.1.

  	
  Information
  Regarding Subordinated Debt............................................................................................................................................................................... 

  	
  17 

  
	
    

  	
  SECTION 5.2.

  	
  Additional
  Representations and Covenants of Subordinated Creditors............................................................................................................................... 

  	
  17 

  
	
    

  	
  SECTION 5.3.

  	
  No Other
  Subordination................................................................................................................................................................................................................. 

  	
  17 

  
	
    

  	
  SECTION 5.4.

  	
  Legend; etc....................................................................................................................................................................................................................................... 

  	
  17 

  
	
    

  	
  SECTION 5.5.

  	
  Consent to
  Credit Agreement........................................................................................................................................................................................................ 

  	
  18 

  
	
    

  	
  SECTION 5.6.

  	
  No Impairment................................................................................................................................................................................................................................ 

  	
  18 

  
	
    

  	
    

  	
    

  	
    

  
	
  ARTICLE
  VI     MISCELLANEOUS

  	
  18 

  
	
    

  	
  SECTION 6.1.

  	
  Effectiveness
  of Agreement.......................................................................................................................................................................................................... 

  	
  18 

  
	
    

  	
  SECTION 6.2.

  	
  Amendments,
  Waivers; etc........................................................................................................................................................................................................... 

  	
  18 

  
	
    

  	
  SECTION 6.3.

  	
  Further
  Assurances.......................................................................................................................................................................................................................... 

  	
  19 

  
	
    

  	
  SECTION 6.4.

  	
  Specific
  Performance; Remedies Cumulative........................................................................................................................................................................... 

  	
  19 

  
	
    

  	
  SECTION 6.5.

  	
  Severability....................................................................................................................................................................................................................................... 

  	
  19 

  
	
    

  	
  SECTION 6.6.

  	
  Continuing
  Agreement................................................................................................................................................................................................................... 

  	
  19 

  
	
    

  	
  SECTION 6.7.

  	
  Successors and
  Assigns.................................................................................................................................................................................................................. 

  	
  19 

  
	
    

  	
  SECTION 6.8.

  	
  Notices............................................................................................................................................................................................................................................... 

  	
  19 

  
	
    

  	
  SECTION 6.9.

  	
  Loan Document;
  etc....................................................................................................................................................................................................................... 

  	
  19 

  
	
    

  	
    

  	
    

  	
    

  
	
  - i -

  

 

 

 

 

 

	
    

  	
  SECTION 6.10.

  	
  CHOICE OF LAW......................................................................................................................................................................................................................... 

  	
  20 

  
	
    

  	
  SECTION 6.11.

  	
  WAIVER OF JURY
  TRIAL......................................................................................................................................................................................................... 

  	
  20 

  
	
    

  	
  SECTION 6.12.

  	
  Survival........................................................................................................................................................................................................................................... 

  	
  20 

  
	
    

  	
  SECTION 6.13.

  	
  Termination.................................................................................................................................................................................................................................... 

  	
  20 

  
	
    

  	
  SECTION 6.14.

  	
  Indemnification............................................................................................................................................................................................................................. 

  	
  20 

  
	
    

  	
  SECTION 6.15.

  	
  Expenses of
  Enforcement............................................................................................................................................................................................................ 

  	
  20 

  
	
    

  	
  SECTION 6.16.

  	
  Obligations
  Several; No Third Parties Benefited...................................................................................................................................................................... 

  	
  21 

  
	
    

  	
  SECTION 6.17.

  	
  Counterparts................................................................................................................................................................................................................................... 

  	
  21 

  
	
    

  	
  SECTION 6.18.

  	
  Headings......................................................................................................................................................................................................................................... 

  	
  21 

  
	
    

  	
  SECTION 6.19.

  	
  Delivery by
  Telecopier.................................................................................................................................................................................................................. 

  	
  21 

  
	
    

  	
    

  	
    

  	
    

  
	
  - ii -

  

 

 

 

 

 

	
  LIST
  OF SCHEDULES

  
	
    

  	
    

  	
    

  	
    

  
	
  Schedule A

  	
  List of Debtors

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  Schedule B

  	
  Permitted Sub
  Debt Payments

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  Schedule C

  	
  List of
  Subordinated Creditors

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  Schedule D

  	
  List of
  Subordinated Debt

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  Schedule E

  	
  List of
  Subordinated Debt Documents

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  Schedule F

  	
  List of Notice
  Addresses

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  LIST OF EXHIBITS

  
	
    

  	
    

  	
    

  	
    

  
	
  Exhibit A

  	
  Form of
  Subordinated Creditor Supplement

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  Exhibit B

  	
  Form of
  Subordinated Debt Supplement

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
  - iii -

  

 

 

 

 

SUBORDINATION
AGREEMENT

This SUBORDINATION AGREEMENT
is entered into as of January 21, 2015 by and among: (A) TELEPHONE AND
DATA SYSTEMS, INC., a Delaware corporation, as a “Subordinated
Creditor” hereunder; (B) each of the other SUBORDINATED CREDITORS
(as defined below); (C) UNITED STATES CELLULAR CORPORATION,
a Delaware corporation (hereinafter, together with its successors in title and
assigns, called the “Borrower”), as a “Debtor” hereunder, and
(D) COBANK, ACB, not in its individual capacity, but in its
capacity as Administrative Agent (as defined below) for the Senior Creditors
(as defined below).

PRELIMINARY STATEMENTS.

(1)           Upon the terms and subject to the conditions contained
in the Credit Agreement, dated as of January 21, 2015, among the Borrower, the
Senior Lenders (as defined below) party thereto on and as of the date hereof
and CoBank, as Administrative Agent for the Senior Creditors (as defined below)
(as amended and in effect from time to time, the “Senior Credit Agreement”),
the Senior Lenders agreed to make Extensions of Credit to the Borrower.

(2)           This Agreement contains terms and provisions of
subordination that are required by the Senior Creditors in connection with
financing arrangements governed by the Senior Credit Agreement, and it is a
condition precedent to the making of additional Extensions of Credit under the
Senior Credit Agreement that the Subordinated Creditors and the Borrower shall
have entered into this Agreement and shall have agreed to become bound by the
terms of subordination and other provisions contained herein.

(3)           The Subordinated Creditors and the Borrower have
agreed with the Administrative Agent, acting for and on behalf of all of the
Senior Creditors, to execute and deliver this Agreement and to become bound by
the terms of subordination and other provisions set forth herein.

NOW, THEREFORE, in
consideration of these premises, the Subordinated Creditors and the Borrower
hereby agree with the Administrative Agent, acting for and on behalf of all of
the Senior Creditors, as follows:

1.        

DEFINITIONS

2.      
Definitions in Senior Credit
Agreement.  Unless otherwise
defined herein, terms defined in the Senior Credit Agreement (as in effect on
the date hereof) are used herein as therein defined.

3.      
Certain Terms.  The following terms, when used in this Agreement,
including the introductory paragraph and the Preliminary Statements
hereto, shall, except where the context otherwise requires, have the following
meanings:

“Administrative Agent” means CoBank,
ACB, not in its individual capacity, but in its capacity as administrative
agent for the Senior Creditors under the Senior Credit Agreement and the other
Senior Loan Documents, and any successor to such administrative agent.

SUBORDINATION AGREEMENT – Page 1

 

 

 

“Agreement” means this
Subordination Agreement, as amended and in effect from time to time.

“Affiliate” means any Person
that would be considered to be an affiliate of another Person under
Rule 144(a) of the Rules and Regulations of the Securities and Exchange
Commission, as in effect on the date hereof, if such other Person were issuing
securities.  For purposes of this Agreement, none of the Subsidiaries of the
Borrower shall be deemed to be an Affiliate of the Borrower or of any other
Subsidiaries of the Borrower.

“Bankruptcy or Insolvency Proceeding”
means, in relation or with respect
to any Debtor or any other Person, (a) any insolvency or bankruptcy case
or proceeding, or any receivership, liquidation, reorganization or other
similar case or proceeding, relative to such Person or to its creditors, as
such, or to its Property, (b) any liquidation, dissolution, reorganization
or winding up of such Person, whether voluntary or involuntary, partial or
complete, and whether or not involving receivership, insolvency or bankruptcy,
or (c) any assignment for the benefit of creditors of such Person, or any
other marshalling of Property or liabilities of such Person.

“Borrower” has the meaning
specified in the introductory paragraph hereto.

“Capital Stock” means
(a) in the case of any corporation, any corporate capital stock of any
class or series, (b) in the case of any association or business entity,
any shares, interests, participations, rights or other equivalents (howsoever
designated) of corporate capital stock, and (c) in the case of any partnership
or limited liability company, partnership or membership interests (whether
general or limited).

“Consolidated Funded Indebtedness”
means, as of any date of determination, for the Borrower and its Subsidiaries
on a consolidated basis and without duplication, the sum of (a) the outstanding
principal amount of all obligations, whether current or long-term, for borrowed
money (including Obligations hereunder) and all obligations evidenced by bonds,
debentures, notes, loan agreements or other similar instruments (including,
without limitation, all purchase money Indebtedness and all direct obligations
arising under letters of credit (including standby and commercial), bankers'
acceptances, bank guaranties, surety bonds and similar instruments), (b) all
obligations incurred as the deferred purchase price of property or services
(other than (i) trade payables entered into in the ordinary course of
business pursuant to ordinary terms and (ii) ordinary course of business
purchase price adjustments and earnouts); (c) all reimbursement and other
payment obligations with respect to letters of credit, bankers’ acceptances,
surety bonds and other similar documents; (d) all obligations evidenced by
promissory notes, bonds, debentures or other similar instruments, including all
obligations so evidenced that are incurred in connection with the acquisition
of property or any business; (e) all indebtedness created under any conditional
sale or other title retention agreements or sales of accounts receivable; (f)
all non-recourse indebtedness of the kind described in clause (a) through
clause (e) secured by Liens on property of the obligor; (g) Attributable
Indebtedness in respect of capital leases and Synthetic Lease Obligations, (h)
net obligations under any Swap Contract, (i) all Indebtedness of the types
referred to in subsections (a) through (h) above of any partnership or joint
venture (other than a joint venture that is itself a corporation or limited
liability company) in which the Borrower or a Subsidiary is a general partner
or party to such a joint venture (other than a limited

SUBORDINATION AGREEMENT – Page 2

 

 

 

partner in a limited
partnership), unless such Indebtedness is expressly made non-recourse to the
Borrower or such Subsidiary and (j) all Guarantees in respect of
indebtedness of the kind described in clause (a) through clause (h)
above; excluding up to $25,000,000 in the aggregate of contingent liabilities
of the Borrower and its Subsidiaries which are not required by GAAP to be
recorded on the balance sheet of the Borrower and its Subsidiaries.  For all
purposes of this Agreement, the term “Consolidated Funded Indebtedness” shall
not include, with respect to the Borrower and its Subsidiaries, the contractual
and other similar obligations of the Borrower and its Subsidiaries with respect
to any Monetization Transactions.

“Debtors” means,
collectively, the Borrower, each (if any) of the Subsidiaries of the Borrower
identified on Schedule A  attached hereto, and each (if any) of the
other Subsidiaries of the Borrower which is an obligor of any kind with respect
to any Subordinated Debt.

“Enforcement Action” means,
in relation to or with respect to any Debtor or any other Person, any of the following:

4.                                 
the acceleration of the maturity
of all or any part of any Consolidated Funded Indebtedness of such Person;

5.                                 
the commencement or pursuit of any
action at law or other legal proceeding against such Person to collect all or
any part of any Consolidated Funded Indebtedness of such Person, or the
enforcement of any other rights or remedies against such Person under or with
respect to all or any part of any Consolidated Funded Indebtedness of such
Person, whether by action at law, suit in equity, arbitration proceedings or
any other similar proceedings;

6.                                 
the realization, foreclosure or
other enforcement of any Liens of any kind on all or any part of any Property
of such Person, or the obtaining of payment of any Consolidated Funded
Indebtedness of such Person through exercise of any rights of set-off,
counterclaim or cross-claim; or

7.                                 
the commencement or initiation of
any Bankruptcy or Insolvency Proceeding against such Person, or the joining
with any other creditor or creditors of such Person to commence or initiate any
Bankruptcy or Insolvency Proceeding against such Person.

“Equity Interests” means,
with respect to any Person, all of the outstanding shares of capital stock of
(or other ownership or profit interests in) such Person, all of the outstanding
warrants, options or other rights for the purchase or acquisition from such
Person of shares of capital stock of (or other ownership or profit interests
in) such Person, all of the outstanding securities convertible into or
exchangeable for shares of capital stock of (or other ownership or profit
interests in) such Person or warrants, rights or options for the purchase or
acquisition from such Person of such shares (or such other interests), and all
of the other outstanding ownership or profit interests in such Person
(including partnership, member or trust interests therein), whether voting or
nonvoting, and whether or not the shares underlying such warrants, options,
rights or other interests are outstanding on any date of determination.

“Event of Default” has the
meaning specified for that term in the Senior Credit Agreement.

SUBORDINATION AGREEMENT – Page 3

 

 

 

“Extension
of Credit” means the making of any advance or loan or the extension of
any other credit or financial accommodation of any kind or character.

“Instrument” means any
contract, agreement, indenture, mortgage or other document or writing (whether
a formal agreement, letter or otherwise) under which any obligation is
evidenced, assumed or undertaken, or any right to any Lien is granted or
perfected.

“Parent Affiliated Companies”
means, collectively, (a) the Parent Company, and (b) all Subsidiaries
and Affiliates of the Parent Company, other than the Borrower and the
Borrower’s Subsidiaries.

“Parent Company” means
Telephone and Data Systems, Inc., a Delaware corporation.

“Payment Blockage Notice”
has the meaning specified in Section 2.4(a). 

“Payment Blockage Period”
means, in relation to any Payment Blockage Notice, the period beginning on the
date on which such Payment Blockage Notice shall be received by the Parent
Company (as provided in Section 2.4(a)) and ending on the date
determined pursuant to Section 2.4(b). 

“payment in full” and “paid
in full” mean payment in full in cash.

“payment or distribution on account
of Subordinated Debt” means any payment or distribution of any kind or
character, whether in cash or other Property, or any combination thereof, and
whether voluntary or involuntary, (a) on account of any principal of (or
premium, if any), interest on, or other amounts owing in respect of all or any
part of any Subordinated Debt, or (b) on account of any purchase,
repurchase, redemption, retirement, prepayment, defeasance or other acquisition
for value of any Subordinated Debt.  For purposes of this Agreement, “payments
or distributions on account of Subordinated Debt” shall in any event
include:  (i) all payments payable on account of Subordinated Debt by
virtue of the provisions of, or any security for, any Instrument governing any
other Consolidated Funded Indebtedness of the Borrower or any of its
Subsidiaries which is subordinate in right of payment to any Subordinated Debt;
(ii) all payments on account of Subordinated Debt made through exercise of
any rights of set-off, counterclaim or cross-claim; and (iii) all payments
on account of Subordinated Debt made through realization, foreclosure or other
enforcement of any Liens of any kind.

“Permitted Equity Interests”
means any Equity Interests of the Borrower on account of or with respect to
which none of the Borrower or its Subsidiaries has any obligation of any kind
to (a) declare or pay any dividends or make other distributions at any
time on or prior to January 2, 2013, except dividends or other
distributions to be paid in Permitted Equity Interests of the Borrower,
(b) make any redemption, repurchase, retirement or acquisition, whether
through the Borrower or any of its Subsidiaries or otherwise, at any time on or
prior to January 2, 2013, except (in any such case) with Permitted Equity
Interests of the Borrower, (c) make any return of capital to the holder
thereof at any time on or prior to January 2, 2013, except with Permitted
Equity Interests of the Borrower, or (d) make any other distributions of
any kind at any time on or prior to January 2, 2013, except distributions
to be made in Permitted Equity Interests of the Borrower.

SUBORDINATION AGREEMENT – Page 4

 

 

 

“Permitted
Interest Payments” has the meaning specified in Section 2.3(a). 

“Permitted Sub Debt Payments”
means, collectively, (a) Permitted Interest Payments, and (b) the
other specific payments or distributions identified and described in Schedule B 
attached hereto (as amended or supplemented from time to time).

“Property” means any
interest in any kind of property or asset, whether real, personal or mixed, and
whether tangible or intangible.

“Senior Compliance Event of Default”
means any Event of Default other than a Senior Payment Event of Default.

“Senior Credit Agreement”
has the meaning specified in the Preliminary Statements hereto.

“Senior Creditors” means,
collectively, (a) all of the Senior Lenders, and (b)  the
Administrative Agent.  For purposes of this Agreement, the term “Senior
Creditors” shall in any event include any and all lawful holders from
time to time of all or any part of the Senior Debt.

“Senior Debt” means,
collectively, all Consolidated Funded Indebtedness of the Borrower or of any of
its Subsidiaries, contingent or otherwise, now or hereafter existing, under or
with respect to:

(a)           the unpaid principal of any
and all Senior Extensions of Credit made or to be made or otherwise extended to
the Borrower or to any of its Subsidiaries under the Senior Debt Documents;

(b)           interest (including interest
accruing at the contract rate after the commencement of any Bankruptcy or
Insolvency Proceedings in relation to the Borrower or any of its Subsidiaries,
whether or not such interest accrues after the commencement of such proceedings
for purposes of any applicable insolvency laws or is an allowed claim in such
proceedings) on Senior Extensions of Credit described in clause (a) 
or on any other Consolidated Funded Indebtedness described in this clause (b) 
or in clause (c)  of this definition, and fees, costs, expenses,
indemnities, reimbursements and other amounts owing under any Senior Debt
Documents (whether or not any such fees, costs, expenses or other amounts are
incurred or otherwise accrue after the commencement of any Bankruptcy or
Insolvency Proceedings in relation to the Borrower or any of its Subsidiaries,
and whether or not all or any portion of any claims with respect thereto are
allowed claims in any such proceedings); and

(c)           claims by any of the Senior
Creditors against the Borrower or any of its Subsidiaries under any guaranties
by the Borrower or by any of its Subsidiaries of any Consolidated Funded
Indebtedness described in clause (a)  or (b)  of this
definition (whether or not any of such claims are made against the Borrower or
any of its Subsidiaries after the commencement of any Bankruptcy or Insolvency
Proceedings with respect to any of such Persons, and whether or not all or any
portion of such claims are allowed claims in any such proceedings).

SUBORDINATION AGREEMENT – Page 5

 

 

 

“Senior
Debt Documents” means, collectively, (a) the Senior Credit
Agreement and all of the other Senior Loan Documents, (b) all other
Instruments pursuant to which any Consolidated Funded Indebtedness owing to the
Senior Creditors under the Senior Credit Agreement or any other Senior Loan
Documents shall be deferred, extended, renewed, replaced, refunded or
refinanced, in whole or in part, and without limitation as to parties,
maturities, amounts, interest rates or other provisions, and (c) all other
Instruments executed in connection with or evidencing, governing, guarantying
or securing any Consolidated Funded Indebtedness under any Instruments referred
to in clause (a)  or (b)  of this definition; in each case
(with respect to any Instruments referred to in clause (a), (b) 
or (c)), as modified, amended or supplemented from time to time.

“Senior
Extensions of Credit” means, collectively:

(a)           any and all Extensions of
Credit made or to be made or otherwise extended by Senior Creditors under or in
respect of Senior Debt Documents at any time and from time to time on, prior to
or after the date hereof to the Borrower or to any of its Subsidiaries; and

(b)           any and all Extensions of
Credit replacing, refunding or refinancing, in whole or in part, whether
directly or indirectly, and without limitation as to parties, maturities,
amounts, interest rates or other provisions, any or all of the Senior Debt
described in clause (a), clause (b)  or clause (c) 
of that defined term.

“Senior Lenders” has the
meaning specified in the Senior Credit Agreement for the term “Lenders”. 

“Senior Loan Documents” has
the meaning specified in the Senior Credit Agreement for the term “Loan
Documents”. 

“Senior Payment Event of Default”
means any Event of Default resulting from any default by the Borrower in the
payment or prepayment of any principal, interest or any other sum that has
become due and payable under the Senior Credit Agreement or any of the other
Senior Debt Documents.

“Subordinated Creditors”
means, collectively, and in each case solely in their respective capacities as
holders of Subordinated Debt, (a) the Parent Company, (b) each of the
other Parent Affiliated Companies identified in Schedule C attached hereto
(as amended or supplemented from time to time), and (c) each of the other
Parent Affiliated Companies that, at any time after the date hereof, shall
execute and deliver to the Administrative Agent a Subordinated Creditor
Supplement and thereby become a party hereto and bound hereby as a
“Subordinated Creditor” hereunder.

“Subordinated Creditor Supplement”
means any supplement to this Agreement, in or substantially in the form of Exhibit A 
attached hereto, by which any Parent Affiliated Company shall become a party to
and bound by this Agreement as a “Subordinated Creditor” hereunder and
additional Subordinated Debt and Subordinated Debt Documents shall be made
subject to this Agreement.

SUBORDINATION AGREEMENT – Page 6

 

 

 

“Subordinated Debt”  means, collectively:

(a)           all Consolidated Funded
Indebtedness of the Borrower or of any of its Subsidiaries identified in
Schedule D attached hereto (as amended or supplemented from time to time);

(b)           all other Consolidated
Funded Indebtedness of the Borrower or of any of its Subsidiaries from time to
time identified and described in any Subordinated Creditor Supplement or any
Subordinated Debt Supplement which at any time after the date hereof shall be
executed by any Subordinated Creditor and delivered to the Administrative
Agent;

(c)           interest (including all (if
any) interest accruing after the commencement of any Bankruptcy or Insolvency
Proceedings in relation to the Borrower or any of its Subsidiaries) payable on
or with respect to any Consolidated Funded Indebtedness described in clause (a),
(b), (c), (d)  or (e)  of this definition, and all
fees, costs, expenses, indemnities, reimbursements and other amounts owing in
respect of any such Consolidated Funded Indebtedness;

(d)           all obligations of the
Borrower or any of its Subsidiaries, contingent or otherwise, to purchase,
repurchase, redeem, retire, prepay, defease or otherwise acquire any or all of
the Consolidated Funded Indebtedness of the Borrower or of any of its
Subsidiaries described in clause (a), (b), (c)  or (e) 
of this definition; and

(e)           all Consolidated Funded
Indebtedness under or with respect to guaranties by the Borrower or by any of
its Subsidiaries of any Consolidated Funded Indebtedness described in any of clause (a),
(b), (c)  or (d)  of this definition.

“Subordinated
Debt Documents” means, collectively:

(a)           all Instruments from time to
time identified and described in Schedule E  attached hereto (as
amended and supplemented from time to time);

(b)           all other Instruments from
time to time identified and described in any Subordinated Creditor Supplement
or any Subordinated Debt Supplement which at any time after the date hereof
shall be executed by any Subordinated Creditor and delivered to the
Administrative Agent;

(c)           each (if any) Instrument
pursuant to which any Subordinated Debt of the Borrower or of any of its
Subsidiaries to each or any of the Subordinated Creditors, whether now or
hereafter existing, is or will be evidenced, governed, guaranteed or secured;

(d)           each Instrument pursuant to
which any Subordinated Debt to any of the Subordinated Creditors shall be
deferred, extended, renewed, replaced, refunded or refinanced, in whole or in
part; and

(e)           each other Instrument
executed in connection with or otherwise evidencing, governing, guarantying or
securing any Subordinated Debt of any kind, including, without limitation, any
Subordinated Debt under any Instrument referred to in clause (a), (b),
(c)  or (d)  of

SUBORDINATION AGREEMENT – Page 7

 

 

 

this definition; in each
case (with respect to any Instrument referred to in clause (a), (d) 
or (e)  of this definition), as modified, amended or supplemented from
time to time.

“Subordinated Debt Supplement”
means any supplement to this Agreement,
in or substantially in the form of Exhibit B  attached hereto, by
which any Subordinated Debt and Subordinated Debt Documents shall be made
subject to this Agreement and thereby become “Subordinated Debt” and
“Subordinated Debt Documents” hereunder.

8.      
General Provisions Relating
to Definitions.  Terms for which
meanings are defined in this Agreement 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 term “including” means including, without limiting the
generality of any description preceding such term.  Each reference herein to
any Person shall include a reference to such Person’s successors in title and
assigns or (as the case may be) his successors, assigns, heirs, executors,
administrators and other legal representatives.  References to any Instrument
defined in this Agreement refer, unless otherwise provided herein, to such
Instrument as originally executed, or, if subsequently varied, replaced or
supplemented from time to time, as so varied, replaced or supplemented and in
effect at the relevant time of reference thereto.

9.        

CONSOLIDATED FUNDED INDEBTEDNESS SUBORDINATION ARRANGEMENTS

10.   
Agreement to Subordinate;
Addition of Subordinated Creditors and Subordinated Debt. 

11.                              
Each of the Subordinated Creditors
severally agrees with and for the benefit of each of the Senior Creditors that
all Subordinated Debt (whether now existing or from time to time after the date
hereof, incurred, assumed, created or arising) owing to it is hereby expressly
subordinated and made junior in right of payment, to the extent and in the
manner hereinafter provided in this Article II, to the prior
payment in full of all Senior Debt (whether now existing or from time to time
after the date hereof, incurred, assumed, created or arising).

12.                              
Any Parent Affiliated Company
which has not previously become a party to and bound by this Agreement as a
“Subordinated Creditor” hereunder may at any time become a Subordinated
Creditor under this Agreement by executing and delivering to the Administrative
Agent a properly completed Subordinated Creditor Supplement.  Upon execution
and delivery of a Subordinated Creditor Supplement by any Parent Affiliated
Company, (i) such Parent Affiliated Company shall automatically (without
any other action on the part of any party hereto) become a Subordinated
Creditor hereunder for all purposes of this Agreement, (ii) the
Consolidated Funded Indebtedness identified and described in such Subordinated
Creditor Supplement shall automatically (without any other action on the part
of any party hereto) become Subordinated Debt for all purposes of this
Agreement, and (iii) all related Subordinated Debt Documents identified
and described therein shall automatically (without any other action on the part
of any party hereto) become Subordinated Debt Documents for all purposes of
this Agreement.

SUBORDINATION AGREEMENT – Page 8

 

 

 

13.                              
Any Consolidated Funded
Indebtedness not previously designated as Subordinated Debt under this
Agreement shall automatically become Subordinated Debt under this Agreement
upon the due execution by the Subordinated Creditor to whom such Consolidated
Funded Indebtedness is owed and delivery to the Administrative Agent of a
properly completed Subordinated Debt Supplement identifying and describing such
Consolidated Funded Indebtedness and all Subordinated Debt Documents pursuant
to which such Subordinated Debt is evidenced or governed.  Upon execution and
delivery of a Subordinated Debt Supplement with respect to any Consolidated
Funded Indebtedness, such Consolidated Funded Indebtedness and all related
Subordinated Debt Documents described therein shall automatically (without any
other action on the part of any party hereto) become Subordinated Debt and
Subordinated Debt Documents for all purposes of this Agreement.

14.   
Limitations on Subordinated
Debt Payments.  Except as and to
the extent otherwise expressly permitted or provided by Sections 2.3 
and 2.5  hereof, neither the Borrower nor any of its Subsidiaries shall
at any time make any payments or distributions of any kind on account of
Subordinated Debt, whether in cash, securities or other Property or by way of
conversion, exchange or set-off or otherwise, and the Subordinated Creditors
shall not at any time demand, receive or accept from the Borrower or from any
of its Subsidiaries, any payments or distributions on account of Subordinated
Debt.

15.   
Permitted Sub Debt Payments;
etc.

16.                              
So long as no Payment Blockage
Period shall be continuing at the time of payment, the Borrower and its
Subsidiaries shall be permitted to pay to Subordinated Creditors, and
Subordinated Creditors shall be entitled to receive and apply, interest that
has accrued on Subordinated Debt at the applicable contract rates of interest
set forth in the applicable Subordinated Debt Documents (as in effect on the
date such documents shall become Subordinated Debt Documents) (all such
permitted payments of interest being herein called “Permitted Interest
Payments”).  No prepayments of interest which has not yet accrued under
applicable Subordinated Debt Documents shall be permitted by this Agreement,
and no such prepayments of such interest shall constitute “Permitted
Interest Payments” for purposes of this Agreement.

17.                              
So long as no Payment Blockage
Period shall be continuing, the Borrower and its Subsidiaries shall be
permitted to pay to Subordinated Creditors, and Subordinated Creditors shall be
entitled to receive and apply, the other Permitted Sub Debt Payments identified
and described in Schedule B  attached hereto (as amended and
supplemented from time to time).

18.                              
So long as no Bankruptcy or
Insolvency Proceeding shall be continuing with respect to the Borrower or any
of its Subsidiaries, Subordinated Creditors shall be entitled at any time and
from time to time to convert all or any part of any Subordinated Debt into, or
(as the case may be) to exchange all or any part of any Subordinated Debt for,
Permitted Equity Interests of the Borrower.

19.                              
Except as otherwise expressly
permitted by paragraph (a), paragraph (b)  or paragraph (c) 
of this Section 2.3  or by Section 2.5  hereof, or as
otherwise expressly consented to in writing by the Administrative Agent in any
particular instance, the limitations on the making of payments or 

 

SUBORDINATION AGREEMENT – Page 9

 

 

 

distributions on account
of Subordinated Debt set forth in Section 2.2  shall be absolute,
unconditional and irrevocable at all times and in all circumstances.

20.   
Payment Blockage Periods. 

21.                              
The Administrative Agent may,
while any Event of Default is continuing, give to each Subordinated Creditor a
written notice (“Payment Blockage Notice”) of such Event of
Default and the imposition of a Payment Blockage Period pursuant to this Section 2.4. 

22.                              
With respect to each Payment
Blockage Notice identifying any one or more Senior Payment Events of Default, a
Payment Blockage Period shall commence on the date on which the Subordinated
Creditors shall receive from the Administrative Agent such Payment Blockage
Notice and shall terminate on the earlier to occur of:  (i) the date on
which each of the Senior Payment Events of Default identified in such Payment
Blockage Notice shall have been cured or waived or shall otherwise have ceased
to exist; or (ii) the date on which such Payment Blockage Period shall be
terminated by written notice to the Subordinated Creditors from the
Administrative Agent.  So long as any Senior Payment Event of Default shall be
continuing, any number of Payment Blockage Notices identifying Senior Payment
Events of Default may be given and any number of Payment Blockage Periods may
be commenced by the Administrative Agent pursuant to this paragraph (b). 

23.                              
With respect to each Payment
Blockage Notice identifying any one or more Senior Compliance Events of
Default, a Payment Blockage Period shall commence on the date on which the
Subordinated Creditors shall receive from the Administrative Agent such Payment
Blockage Notice and shall terminate on the earlier to occur of:  (i) the
date 179 days after the commencement of such Payment Blockage Period (or such
earlier date as may be required by the next sentence); (ii) the date on
which each of the Senior Compliance Events of Default identified in such
Payment Blockage Notice shall have been cured or waived or shall otherwise have
ceased to exist; or (iii) the date on which such Payment Blockage Period
shall be terminated by written notice to the Subordinated Creditors from the
Administrative Agent.  So long as any Senior Compliance Event of Default shall
be continuing, any number of Payment Blockage Notices identifying Senior
Compliance Events of Default may be given and any number of Payment Blockage
Periods may be commenced by the Administrative Agent pursuant to this
paragraph (c), but the aggregate duration of all Payment Blockage Periods
commenced by the Administrative Agent pursuant to this paragraph (c) 
during any period of 365 consecutive days shall not exceed 179 days. 
Notwithstanding any other provision of this paragraph (c), no
Senior Compliance Event of Default which existed or was continuing on the date
of the commencement of any Payment Blockage Period pursuant to this paragraph (c) 
shall be, or be made, the basis for the commencement of a second Payment
Blockage Period pursuant to this paragraph (c). 

24.   
Bankruptcy or Insolvency
Proceedings.  Each of the
Subordinated Creditors and Debtors hereby agrees with the Senior Creditors
that, in the event of any Bankruptcy or Insolvency Proceeding with respect to
any of the Debtors:

25.                              
the Senior Creditors shall first
be entitled to receive payment in full of all Senior Debt before the
Subordinated Creditors shall be entitled to receive any payment or distribution
on account of Subordinated Debt from such Debtor;

SUBORDINATION AGREEMENT – Page 10

 

 

 

26.                              
the Senior Creditors shall be
entitled to receive from such Debtor (until payment in full of all Senior Debt)
all payments and distributions on account of Subordinated Debt which would
otherwise be payable or deliverable to the Subordinated Creditors, including,
without limitation, all cash, securities, Equity Interests and other Property
distributed, divided or applied by way of dividend or payment, and any
securities or Equity Interests issued, on account of the Subordinated Debt,
and, to that end, all such payments and distributions from such Debtor that
otherwise would be payable or deliverable upon or with respect to any
Subordinated Debt shall instead be paid or delivered forthwith directly to the
Administrative Agent, for the benefit of the Senior Creditors, in the same form
as so received (with any necessary endorsement or assignment) for application
to the payment of Senior Debt until all Senior Debt shall have been paid in
full, and the Administrative Agent shall be entitled to hold all such
securities, Equity Interests and other Property as collateral for the Senior
Debt, to sell, assign, transfer or dispose of such securities, Equity Interests
and other Property as the Administrative Agent shall deem appropriate, and to
apply all proceeds from the sale, assignment, transfer or disposition of such
securities, Equity Interests and other Property to the Senior Debt;

27.                              
if any Subordinated Creditor shall
fail to file a proper proof of claim in the form required by applicable law
against such Debtor in respect of the Subordinated Debt prior to the date
thirty (30) days before the expiration of the time to file such claim, then the
Administrative Agent is authorized, but shall have no obligation, to file such
claim in the name of and on behalf of such Subordinated Creditor; and

28.                              
the Subordinated Creditors shall
duly and promptly take such action as the Administrative Agent may reasonably
request to collect Subordinated Debt from such Debtor, and to collect and
receive any and all payments or distributions on account of such Subordinated
Debt.

29.   
Certain Other Bankruptcy
Matters; etc.

(a)           In order to carry out and to
give full effect to the express intentions of each of the parties hereto as set
out in Section 2.5, and in order better to ensure the performance
by the Subordinated Creditors of the covenants of the Subordinated Creditors
with the Administrative Agent, for the benefit of the Senior Creditors,
contained in Section 2.5, each of the Subordinated Creditors hereby
absolutely and irrevocably constitutes and appoints the Administrative Agent
its true and lawful agent and attorney-in-fact, with full power of
substitution, in the name and on behalf of such Subordinated Creditor or in the
name of the Administrative Agent or any of the Senior Creditors or in the name
of the Administrative Agent’s substitute agents or attorneys, to do, in any
Bankruptcy or Insolvency Proceeding with respect to any Debtor, if all of the
Senior Debt shall not have been paid in full at the time, all or any of the
following:

30.               
to enforce all or any of the
claims comprising all or any part of any Subordinated Debt of such Debtor by
filing claims, proofs of claim, suit or otherwise;

31.               
to enforce all or any of the Liens
on any Property of such Debtor;

32.               
to give or withhold the consent of
such Subordinated Creditor to the use by such Debtor of any Property of such
Debtor;

 

SUBORDINATION AGREEMENT – Page 11

 

 

 

33.               
to give or withhold the consent of
such Subordinated Creditor to the sale, transfer or other disposition by such
Debtor of any Property of such Debtor;

34.               
to collect or receive all or any
of the Property of any Debtor distributed, divided or applied by way of
dividend or payment on account of all or any part of any Subordinated Debt of
such Debtor and to apply the same, or the proceeds of any realization upon the
same that the Administrative Agent in its sole and absolute discretion shall
elect to effect, to all or any part of the Senior Debt until all of the Senior
Debt shall have been paid in full;

35.               
to execute, deliver or otherwise
perfect any Instrument and to execute and do all of such other assurances, acts
and things which the Administrative Agent or any of the Administrative Agent’s
substitute agents or attorneys may deem proper in or for the purpose of exercising
all or any of the powers and authorities granted to the Administrative Agent by
each of the Subordinated Creditors pursuant to this paragraph (a); 

36.               
to cast all ballots and vote all
claims in respect of the Subordinated Debt of such Debtor and to negotiate,
accept or reject on behalf of the Subordinated Creditors any plan of partial or
complete liquidation, reorganization, arrangement, composition or extension
proposed in connection with any Bankruptcy or Insolvency Proceeding with
respect to such Debtor, all in such manner and on such terms and conditions as
the Administrative Agent shall in its sole and absolute discretion determine to
be in the best interests of the Senior Creditors; and

37.               
generally, to take, in connection
with any such Bankruptcy or Insolvency Proceeding with respect to such Debtor
and solely in relation to all or any part of any Subordinated Debt of such
Debtor, any action which the Subordinated Creditors would, but for the terms of
this Agreement, be otherwise entitled to take in or for the purpose of
exercising all or any of the powers, authorities or rights specified in the
foregoing provisions of this paragraph (a). 

38.                              
Each of the Subordinated Creditors
hereby ratifies and confirms and agrees to ratify and confirm whatever the
Administrative Agent (or any of the Administrative Agent’s substitute agents)
or attorneys shall do or purport to do in good faith in the exercise, at any
time and from time to time prior to (but not after) the payment in full of all
Senior Debt, of the power of attorney granted to the Administrative Agent by
such Subordinated Creditor pursuant to Section 2.5(a), which power
of attorney, being coupled with an interest, is irrevocable.

39.                              
Each of the Subordinated Creditors
severally covenants and agrees with the Administrative Agent that, in any
Bankruptcy or Insolvency Proceeding with respect to any of the Debtors, if all
of the Senior Debt shall not have been paid in full at the time:

40.               
such Subordinated Creditor shall,
for all purposes of such Bankruptcy or Insolvency Proceeding, be deemed to have
given its consent to and approval for (A) the use by any of the Debtors of
any Property of any of the Debtors, and (B) the sale, transfer or other
disposition by the Debtors or any of them of any Property of any of the Debtors,
in each such case, if and to the extent that any such use, sale, transfer or
other disposition shall be consented to or otherwise approved by the
Administrative Agent;

 

SUBORDINATION AGREEMENT – Page 12

 

 

 

41.               
if any payments or distributions
made to the Administrative Agent on account of any Senior Debt, whether before
or after the commencement of any Bankruptcy or Insolvency Proceeding with
respect to the Borrower or any of its Subsidiaries, shall be avoided as a
fraudulent transfer or fraudulent conveyance under any applicable law, then, for
purposes of determining whether and when all of the Senior Debt shall have been
paid in full, the Administrative Agent shall be deemed never to have received
the payments or distributions so avoided; and

42.               
during such Bankruptcy or
Insolvency Proceeding, until all Senior Debt shall be paid in full, the
Administrative Agent shall (as between the Administrative Agent and the
Subordinated Creditors) have the exclusive right to collect, foreclose upon,
sell, transfer, liquidate or otherwise dispose of, or exercise any other
Enforcement Action with respect to, all or any part of the Property of any of
the Debtors in the manner deemed appropriate by the Administrative Agent,
without regard to the rights of any of the Subordinated Creditors, and, to the
extent permitted by applicable law, each of the Subordinated Creditors hereby
agrees not to hinder, delay or otherwise interfere with any Enforcement Action
by the Administrative Agent with respect to any of the Debtors, any of their
Property or any part thereof.

43.   
Delivery of Prohibited
Payments or Distributions on Account of Subordinated Debt.  If any payment or distribution on account of
Subordinated Debt shall at any time be collected or received by any of the
Subordinated Creditors, by way of set-off or otherwise, and such collection or
receipt shall not be expressly permitted by this Article II  at the
time of such collection or receipt, then such payment or distribution shall be
paid over or delivered forthwith to the Administrative Agent for application to
Senior Debt.  Payments or distributions on account of Subordinated Debt paid or
delivered to the Administrative Agent in compliance with this Article II 
that are in the form of cash shall be used to pay Senior Debt.  Any such
payments or distributions that are not in the form of cash shall be held by the
Administrative Agent as security for the payment of Senior Debt.  The
Administrative Agent shall be entitled to sell, assign, transfer or dispose of
such Property as the Administrative Agent deems appropriate.  Cash proceeds of
any such non‐cash payments or distributions on account of Subordinated
Debt shall, when such cash proceeds are received by the Administrative Agent,
be used to pay Senior Debt.

44.   
Subrogation.  Upon payment in full of all Senior Debt, the
Subordinated Creditors shall be immediately subrogated to the rights of the
Senior Creditors (to the extent of payments and distributions previously made
to or for the account of the Senior Creditors pursuant to the provisions of
this Article II), to receive payments and distributions of Property
of the Borrower or of any of its Subsidiaries applicable to Senior Debt until
all amounts owing on Subordinated Debt shall be paid in full.  No payments or
distributions applicable to Senior Debt which the Subordinated Creditors shall
receive by reason of their being subrogated to the rights of the Senior
Creditors pursuant to the provisions of this Section 2.8  shall, as
between the Borrower or any of its Subsidiaries, any of their creditors other
than the Senior Creditors, and the Subordinated Creditors, be deemed to be a
payment by such Person to or for the account of any Subordinated Debt; and, for
the purposes of such subrogation, no payments or distributions to the Senior
Creditors of any Property to which the Subordinated Creditors would be entitled
except for the provisions of this Agreement, and no payment over pursuant to
provisions of this Agreement, to the Senior Creditors by the Subordinated 

 

SUBORDINATION AGREEMENT – Page 13

 

 

 

Creditors, shall, as between the Borrower or any of
its Subsidiaries, any of their creditors other than the Senior Creditors, and
the Subordinated Creditors, be deemed to be a payment by such Person to or for
the account of any Senior Debt, it being understood that the provisions of this
Agreement are intended solely for the purpose of defining the relative rights
of the Subordinated Creditors, on the one hand, and the Senior Creditors, on
the other hand, and nothing contained in this Section 2.8  or
elsewhere in this Agreement, is intended to or shall impair, as between the
Borrower or any of its Subsidiaries and the Subordinated Creditors, the
obligations of the Borrower and its Subsidiaries, which are absolute and
unconditional, to pay to the Subordinated Creditors, subject always to the
rights of the Senior Creditors, the Subordinated Debt as and when the same
shall become due and payable in accordance with its terms.

45.     

LIMITATIONS ON CERTAIN ENFORCEMENT ACTIONS AND

OTHER NEGATIVE COVENANTS

46.   
Prohibitions on Commencement
of Certain Enforcement Actions. 
Until all of the Senior Debt shall have been paid in full, the Subordinated
Creditors shall not at any time commence or institute, or join with any other
Person or Persons in commencing or instituting, any Enforcement Action of any
kind against the Borrower or any of the Borrower’s Subsidiaries or against any
of the Property of the Borrower or any of its Subsidiaries with respect to any
Subordinated Debt.

47.   
Limitations on Remedies
Under Subordinated Debt Documents. 
Notwithstanding any contrary provision of any Subordinated Debt Document, the
occurrence or continuation of any Default or Event of Default of any kind
whatsoever under or with respect to any of the Senior Debt Documents shall not
constitute a “default” or an “event of default” under any of the Subordinated
Debt Documents.

48.   
Limitations on Liens
Securing Subordinated Debt. 

49.                              
The Borrower shall not at any time
grant, or cause or permit any of its Subsidiaries at any time to grant, to any
of the Subordinated Creditors, and the Subordinated Creditors shall not at any
time acquire, demand, receive or accept from the Borrower or from any of its
Subsidiaries, any Liens on any Property of any kind as security for any
Subordinated Debt, unless (i) such Liens shall at all times be junior in
priority to Liens securing Senior Debt, and (ii) at no time shall such
Liens attach to any Property except Property subject to Liens which secure the
Senior Debt on terms and conditions satisfactory to the Administrative Agent.

50.                              
Liens on Property securing all or
any part of the Senior Debt shall at all times have priority in every respect
over, and shall in all respects and at all times be senior and superior to, all
Liens (if any) on such Property securing all or any part of the Subordinated
Debt.  The priorities specified in this paragraph (b)  for the Liens
described herein shall be applicable (i) whether or not any such Liens
shall have been duly and properly created or perfected, whether or not any such
Liens shall be legal, valid, binding or enforceable, and whether or not any
such Liens shall or may be subject to avoidance, or shall be avoided, as a
fraudulent transfer or fraudulent conveyance, in any case whether before or
after the commencement of any Bankruptcy or Insolvency

SUBORDINATION AGREEMENT – Page 14

 

 

 

Proceedings with respect
to any Debtor, (ii) whether or not any such Liens shall be acquired or
created consensually or by attachment, levy, execution, distraint or otherwise,
and (iii) irrespective of (A) the time, order or method of creation,
attachment or perfection of any such Liens, (B) the time or order of
filing or recording of financing statements or other Instruments pertaining to
any such Liens, or (C) the possession of any of such Property subject to
any such Liens.

51.                              
Until all of the Senior Debt shall
have been paid in full, the Subordinated Creditors shall not at any time
commence or institute, or join any other Person or Persons in commencing or
instituting, any Enforcement Action of any kind with respect to any Liens
securing all or any part of the Subordinated Debt.

52.                              
Any Liens acquired in violation of
paragraph (a)  of this Section 3.3  shall be null and
void ab  initio, and none of the Subordinated Creditors shall have
any rights, remedies, claims, benefits or priorities, as secured party or otherwise,
in relation to any Property subject to any such Liens.

53.     

WAIVERS AND CONSENTS

54.   
Waivers of Notice; etc.  To the extent permitted by applicable law, the
obligations of each of the Subordinated Creditors and Debtors under this
Agreement, and the subordination arrangements and covenants contained herein,
shall not be to any extent or in any way or manner whatsoever impaired or
otherwise affected by any of the following, whether or not any of the
Subordinated Creditors or Debtors shall have had any notice or knowledge of any
thereof:

55.                              
the dissolution, termination of
existence, bankruptcy, liquidation, insolvency, appointment of a receiver for
all or any part of the Property of, assignment for the benefit of creditors by,
or the commencement of any Bankruptcy or Insolvency Proceeding by or against,
the Borrower or any of its Subsidiaries;

56.                              
the absorption, merger or consolidation
of, or the effectuation of any other change whatsoever in the name, membership,
constitution or place of formation of, the Borrower or any of its Subsidiaries;

57.                              
any extension or postponement of
the time for the payment of any Senior Debt, the acceptance of any partial
payment thereon, any and all other indulgences whatsoever by the Senior
Creditors in respect of any Senior Debt, the taking, addition, substitution or
release, in whole or in part, at any time or times, of any collateral or Liens securing
any Senior Debt, or the addition, substitution or release, in whole or in part,
of any Person or Persons primarily or secondarily liable in respect of any
Senior Debt;

58.                              
any action or delay in acting or
failure to act on the part of any Senior Creditor under any Senior Debt
Document or in respect of any Senior Debt or Liens securing any Senior Debt or
otherwise, including (i) any action by any Senior Creditor to enforce any
of its rights, remedies or claims in respect of Liens securing any Senior Debt,
(ii) any failure by any Senior Creditor strictly or diligently to assert
any rights or to pursue any remedies or claims against any of the Debtors or
any other Person or Persons under any of the Senior Debt Documents or provided
by

SUBORDINATION AGREEMENT – Page 15

 

 

 

statute or at law or in
equity, (iii) any failure by any Senior Creditor to perfect or to preserve
the perfection or priority of any of its Liens securing any Senior Debt, or
(iv) any failure or refusal by any Senior Creditor to foreclose or to
realize upon any Liens securing any Senior Debt or to take any action to
enforce any of its rights, remedies or claims under any Senior Debt Document;

59.                              
any modification or amendment of,
or any supplement or addition to, any of the Senior Debt Documents;

60.                              
any waiver, consent or other
action or acquiescence by any of the Senior Creditors in respect of any default
by the Borrower or by any of its Subsidiaries in its performance or observance
of or compliance with any term, covenant or condition contained in any Senior
Debt Document;

61.                              
any Senior Debt or any Senior Debt
Document or any provision thereof or any Liens securing any Senior Debt shall
at any time or for any reason whatsoever cease to be in full force or effect or
shall be declared null and void or illegal, invalid, unenforceable or
inadmissible in evidence, or any Senior Debt or any payments or distributions
on account of Senior Debt or any Liens securing Senior Debt shall be subject to
avoidance, or shall be avoided, as a fraudulent transfer or fraudulent
conveyance, in any case whether prior to or after the commencement of any
Bankruptcy or Insolvency Proceedings by or against the Borrower or any of its
Subsidiaries;

62.                              
any Subordinated Debt or any
Subordinated Debt Document or any provision thereof or any Liens securing any
Subordinated Debt shall at any time or for any reason whatsoever cease to be in
full force or effect or shall be declared null and void or illegal, invalid,
unenforceable or inadmissible in evidence, or any Subordinated Debt or any
payments or distributions on account of Subordinated Debt or any Liens securing
any Subordinated Debt shall be subject to avoidance, or shall be avoided, as a
fraudulent transfer or fraudulent conveyance, in any case whether prior to or
after the commencement of Bankruptcy or Insolvency Proceedings by or against
the Borrower or any of its Subsidiaries;

63.                              
the existence or creation at any
time or times on or after the date of this Agreement of any claim, defense,
right of set-off or counterclaim of any nature whatsoever of any Subordinated Creditor
against the Borrower or any of its Subsidiaries or against any of the Senior
Creditors; or

64.                              
the existence of any other
condition or circumstance or the occurrence of any other event that might
otherwise constitute a legal or equitable discharge of or a suretyship defense
to the performance by any Subordinated Creditor of any of its obligations or
other liabilities hereunder.

To the extent permitted by applicable law, each of the
Subordinated Creditors hereby absolutely, unconditionally and irrevocably
assents to and waives notice of any and all matters hereinbefore specified in clauses (a) 
through (j).  This Agreement shall continue to be effective or shall be
reinstated, as the case may be, if at any time any payment of any Senior Debt
previously made by any Debtor to any of the Senior Creditors is rescinded or
must otherwise be returned by any of the Senior Creditors in connection with
any Bankruptcy or Insolvency Proceedings with respect to any of the Debtors or
otherwise, all as though such payment of Senior Debt had not been made.

SUBORDINATION AGREEMENT – Page 16

 

 

 

65.                  
 

ADDITIONAL REPRESENTATIONS AND OTHER COVENANTS

66.      
Information Regarding
Subordinated Debt.  Each of the
Borrower and the Subordinated Creditors shall furnish to the Administrative
Agent from time to time all such information regarding Subordinated Debt as the
Administrative Agent may from time to time reasonably request.

67.      
Additional Representations
and Covenants of Subordinated Creditors. 

68.                              
No part of the Subordinated Debt
is evidenced by any Instrument or other writing a true and complete copy which
has not previously been furnished to the Administrative Agent.  The
Subordinated Creditors are the lawful owners of the Subordinated Debt, and no
part thereof has been assigned to or subordinated or subjected to any Liens in
favor of any Person or Persons, except in compliance with the provisions of paragraph (b) 
of this Section 5.2. 

69.                              
Until all of the Senior Debt shall
have been paid in full, none of the Subordinated Creditors shall sell, assign,
pledge, encumber or otherwise transfer any Subordinated Debt or any rights or
interests in any Subordinated Debt or any Subordinated Debt Documents, unless,
prior to and in connection with any such transfer, the purchaser, assignee or
other transferee thereof shall have agreed in writing to become a party to and
bound by this Agreement as a Subordinated Creditor hereunder.

70.                              
No part of the Subordinated Debt
is secured by any Liens on Property of any kind of the Borrower or any of its
Subsidiaries.

71.   
No Other Subordination.  Each Subordinated Creditor represents that the
Subordinated Debt is not subordinated to any obligations other than the Senior
Debt and covenants that it will not subordinate the Subordinated Debt to any
other obligations except with the prior written consent of the Administrative
Agent.

72.   
Legend; etc.  Each of the Debtors and the Subordinated Creditors
covenants to cause each Instrument or certificate representing or evidencing
any of the Subordinated Debt to have affixed upon it a legend substantially as
follows:

“THIS SUBORDINATED NOTE IS
SUBORDINATED AND MADE JUNIOR IN RIGHT OF PAYMENT, AND MADE SUBJECT TO
RESTRICTIONS AND LIMITATIONS ON ENFORCEMENT (INCLUDING ACCELERATION) AND
RESTRICTION AND LIMITATIONS ON SALE, ASSIGNMENT, ENCUMBRANCE AND OTHER
TRANSFERS, ALL UPON THE TERMS, IN THE MANNER, AND TO THE EXTENT SET FORTH IN
THE SUBORDINATION AGREEMENT, DATED AS OF JANUARY 21, 2015, AS FROM TIME TO TIME
IN EFFECT, AMONG TELEPHONE AND DATA SYSTEMS, INC., THE OTHER SUBORDINATED
CREDITORS FROM TIME TO TIME PARTY THERETO, UNITED STATES CELLULAR CORPORATION,
AND COBANK, ACB, AS ADMINISTRATIVE AGENT.”

 

SUBORDINATION AGREEMENT – Page 17

 

 

 

The Parent
Company and the Debtors shall cause any financial statement describing or
listing or otherwise reflecting the existence of any Consolidated Funded
Indebtedness included in the Subordinated Debt to indicate clearly the
subordinated character thereof, to the extent appropriate under Generally
Accepted Accounting Principles.

73.   
Consent to Credit Agreement.  Each Subordinated Creditor acknowledges receipt
from the Parent Company of a correct and complete copy of the Senior Credit
Agreement as in effect as of the date such Subordinated Creditor became a party
to this Agreement, and consents to all of the provisions of the Senior Credit
Agreement as in effect as of such date.

74.   
No Impairment.  No right of the Senior Creditors under this
Agreement shall at any time be prejudiced or impaired by any conduct on the
part of any Debtor or any Subordinated Creditor, including any noncompliance by
any Debtor or any Subordinated Creditor with the terms of this Agreement, or by
any conduct, in good faith, by any Senior Creditor, regardless of any knowledge
thereof which any Senior Creditor may have or otherwise be charged with.

75.         
 

MISCELLANEOUS

76.   
Effectiveness of Agreement.  This Agreement shall be effective as to, and shall
be enforceable by the Administrative Agent against, each Subordinated Creditor
from and after the execution and delivery by such Subordinated Creditor of a
counterpart of this Agreement or a Subordinated Creditor Supplement.  The
agreements and obligations of each Subordinated Creditor under this Agreement
are separate and independent from and in addition to the agreements and
obligations of each of the other Subordinated Creditors and shall be
enforceable by the Administrative Agent against each Subordinated Creditor
notwithstanding (a) the failure of any other Parent Affiliated Company to
execute and deliver a counterpart of this Agreement or a Subordinated Creditor
Supplement, (b) the invalidity, unenforceability or inadmissibility in
evidence of this Agreement against any one or more of the other Subordinated
Creditors, (c) the release by the Administrative Agent of all or any of
the other Subordinated Creditors from all or any part of their obligations
under this Agreement, or (d) any waiver, termination or cancellation by
the Administrative Agent of, or any consent by the Administrative Agent to any
departure from, any of the agreements or obligations of any other Subordinated
Creditor hereunder on any occasion or occasions, or any failure by the
Administrative Agent to enforce any of the agreements or obligations of any
other Subordinated Creditor hereunder on any occasion or occasions.

77.   
Amendments, Waivers; etc.  The provisions of this Agreement may from time to
time be amended if such amendment is in writing and consented to by each of the
parties hereto.  No failure or delay on the part of any Person in exercising
any power or right under this Agreement shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power or right preclude any
other or further exercise thereof or the exercise of any other power or right. 
The remedies herein provided are cumulative and not exclusive of any other
remedies provided at law or in equity.  No waiver or approval by a Person under
this Agreement shall, except as may be otherwise stated in such waiver or
approval, be applicable to any subsequent transactions.

SUBORDINATION AGREEMENT – Page 18

 

 

 

78.   
Further Assurances.  The Subordinated Creditors shall execute and
deliver all such further Instruments, and take all such further action, as may
be reasonably necessary or appropriate, or as the Administrative Agent may
reasonably request, in order to carry out the intent and purpose of this Agreement. 
The Administrative Agent shall execute and deliver all such further
Instruments, and take all such further action, as may be reasonably necessary
or appropriate, or as the Subordinated Creditors may reasonably request, in
order to carry out the intent and purposes of this Agreement.

79.   
Specific Performance;
Remedies Cumulative.  Each of the
Subordinated Creditors and Debtors (a) acknowledges that a remedy at law
for any breach or attempted breach of this Agreement may be inadequate,
(b) agrees that the Administrative Agent and the other Senior Creditors
shall be entitled to specific performance, and (c) agrees to waive any
requirement for obtaining or posting any bond in connection with seeking or
obtaining any such injunctive or equitable relief.  The rights and remedies of
each of the Administrative Agent and the other Senior Creditors provided herein
are cumulative, and not exclusive of any of the rights and remedies which may
be granted or provided by applicable law or by any of the other Senior Debt
Documents.

80.   
Severability.  Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of any such provision in any other jurisdiction.

81.   
Continuing Agreement.  This Agreement shall in all respects be a
continuing agreement, and this Agreement and the agreements and obligations of
each of the Subordinated Creditors hereunder shall remain in full force and
effect until all Senior Debt shall be paid in full.

82.   
Successors and Assigns.  This Agreement shall be binding upon, and shall
inure to the benefit of, each of the Administrative Agent and the other Senior
Creditors, the Subordinated Creditors and the Borrower and their respective
successors in title and permitted assigns.

83.   
Notices.  All notices and other communications provided to a
party hereunder shall (except as otherwise specifically provided herein) be in
writing and shall be delivered in hand, mailed by United States registered or
certified first class mail, postage prepaid, or sent by telecopy and confirmed
by delivery via courier or postal service and shall be addressed or delivered
to it at its address designated for notices set forth on Schedule F 
attached hereto (as amended or supplemented from time to time) or at such other
address as may be designated by such party in a notice to the other parties. 
Any such notice shall be deemed to have been duly received and to have become
effective (a) if telecopied, or delivered by hand to a responsible officer
of the party to which it is directed, at the time of the receipt thereof by
such officer and (b) if sent by registered or certified first-class mail,
postage prepaid, three days after the date mailed.

84.   
Loan Document; etc.  This Agreement constitutes a “Loan Document”
for all purposes of the Senior Credit Agreement and the other Senior Loan
Documents.  This Agreement, constitutes the entire agreement among the Senior
Creditors and the Subordinated Creditors with respect to the subject matter
hereof and supersedes any prior or contemporaneous 

 

SUBORDINATION AGREEMENT – Page 19

 

 

 

agreements, representations, warranties or
understandings, whether oral, written or implied, as to the subject matter of
this Agreement.

85.   
CHOICE OF LAW.  THIS AGREEMENT IS A CONTRACT UNDER THE LAWS OF THE
STATE OF NEW YORK AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF SAID STATE (EXCLUDING THE LAWS APPLICABLE TO
CONFLICTS OR CHOICE OF LAW OTHER THAN GENERAL OBLIGATIONS LAW §5-1401).

86.   
WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY WAIVES ITS RIGHT
TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE
IN CONNECTION WITH THIS AGREEMENT OR THE SUBJECT MATTER HEREOF, ANY RIGHTS OR
OBLIGATIONS HEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.  EACH
SUBORDINATED CREDITOR (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY SENIOR CREDITOR HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH SENIOR CREDITOR WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVERS AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS CONTAINED HEREIN.

87.   
Survival.  The agreements and obligations of each party hereto
under Sections 6.10, 6.11, 6.14  and 6.15 
hereof shall survive the termination of this Agreement and the payment in full
of all Senior Debt.  The representations and warranties made by the Debtors or
(as the case may be) by the Subordinated Creditors in this Agreement shall
survive the execution and delivery of this Agreement.

88.   
Termination.  This Agreement and all of the covenants and other
obligations of each of the parties hereto shall, except as otherwise expressly
provided by Section 6.12, terminate upon, and be of no further
force or effect whatsoever after, the payment in full of all of the Senior
Debt.

89.   
Indemnification.  Each party hereto (each, an “indemnifying
party”) agrees to indemnify and hold harmless each of the other parties
hereto from and against any and all losses, damages, claims and liabilities
which such other parties shall sustain or incur and which shall arise directly
out of or which shall be directly caused by any breach by the indemnifying
party of any of its covenants or agreements hereunder.

90.   
Expenses of Enforcement.  Each Subordinated Creditor hereby agrees to pay to
the Administrative Agent, on demand by the Administrative Agent, all reasonable
out-of-pocket costs and expenses (including, but not limited to, court costs
and expenses and reasonable fees and disbursements of attorneys) at any time or
from time to time incurred or sustained by the Administrative Agent or any of
the other Senior Creditors in connection with its enforcement of any of its
claims or remedies against such Subordinated Creditor under this Agreement.

SUBORDINATION AGREEMENT – Page 20

 

 

 

91.    Obligations Several; No Third Parties Benefited. 

92.                              
The agreements and obligations of
each of the Subordinated Creditors under this Agreement are several and not
joint.  No Subordinated Creditor shall be responsible for the failure of any
other Subordinated Creditor to perform its obligations hereunder.

93.                              
This Agreement is made and entered
into for the sole protection and legal benefit of each of the Administrative
Agent and the other Senior Creditors and its successors in title and assigns. 
It is not the intention of the parties hereto to confer any third-party
beneficiary rights, and this Agreement shall not be construed so as to confer
any such rights upon any other Person or Persons not party hereto.  Neither the
Borrower nor any of its Subsidiaries nor any other Person or Persons (other
than a party hereto) shall be a direct or indirect legal beneficiary of, or
have any direct or indirect cause of action or claim in connection with, this
Agreement.

94.   
Counterparts.  This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which, when so executed and delivered, shall be an original, but all of
which shall together constitute one and the same Instrument.  A set of
counterparts executed by all of the parties hereto shall be lodged with the
Borrower and the Administrative Agent.  Delivery by facsimile by any of the
parties hereto of an executed counterpart hereof, of any amendment or waiver
hereto or any Subordinated Creditor Supplement or Subordinated Debt Supplement,
shall be as effective as an original executed document and shall be considered
a representation that such original executed document, as the case may be, will
be delivered.

95.   
Headings.  The descriptive headings in this Agreement are
inserted for convenience of reference only and shall not affect the meaning or
interpretation of this Agreement or any provision hereof.

96.   
Delivery by Telecopier.  Delivery of photocopies of the signature pages to
this Agreement by facsimile shall be effective as delivery of manually executed
counterparts of this Agreement.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
BLANK]

SUBORDINATION AGREEMENT – Page 21

 

 

 

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

 

	
    

  	
    

  	
  The
  Subordinated Creditor: 

  
	
    

  	
    

  	
    

  
	
    

  	
    

  	
  TELEPHONE
  AND DATA SYSTEMS, INC.

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
    

  	
  Name:

  
	
    

  	
    

  	
    

  	
  Title:

  

 

SUBORDINATION AGREEMENT – Signature Page

 

 

 

	
    

  	
    

  	
  The
  Borrower: 

  
	
    

  	
    

  	
    

  
	
    

  	
    

  	
  UNITED
  STATES CELLULAR CORPORATION

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
    

  	
  Name:

  
	
    

  	
    

  	
    

  	
  Title:

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  The
  Administrative Agent: 

  
	
    

  	
    

  	
    

  
	
    

  	
    

  	
  COBANK, ACB,
  as Administrative Agent

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
    

  	
  Name:

  
	
    

  	
    

  	
    

  	
  Title:

  

SUBORDINATION AGREEMENT – Signature Page

 

 

 

SCHEDULE A

SCHEDULE A TO THE SUBORDINATION AGREEMENT, DATED AS

OF JANUARY 21, 2015, AMONG TELEPHONE AND DATA

SYSTEMS, INC., THE OTHER SUBORDINATED CREDITORS,

UNITED STATES CELLULAR CORPORATION, AS A DEBTOR, AND

COBANK, ACB, AS ADMINISTRATIVE AGENT

                                                                                                                                                                                                 

LIST OF DEBTORS

A.            BORROWER 

                United States Cellular Corporation

B.            CERTAIN
SUBSIDIARIES OF UNITED STATES CELLULAR

                CORPORATION                                                                                                                                                 

                None. 

 

 

 

 

 

SCHEDULE B

SCHEDULE B TO THE SUBORDINATION AGREEMENT, DATED AS

OF JANUARY 21, 2015, AMONG TELEPHONE AND DATA

SYSTEMS, INC., THE OTHER SUBORDINATED CREDITORS, UNITED

STATES CELLULAR CORPORATION, AS A DEBTOR, AND COBANK, ACB, AS ADMINISTRATIVE
AGENT

                                                                                                                                                                                                 

PERMITTED SUB DEBT PAYMENTS

                None. 

 

 

 

 

 

SCHEDULE C

SCHEDULE C TO THE SUBORDINATION AGREEMENT, DATED AS

OF JANUARY 21, 2015, AMONG TELEPHONE AND DATA

SYSTEMS, INC., THE OTHER SUBORDINATED CREDITORS,

UNITED STATES CELLULAR CORPORATION, AS A DEBTOR, AND

COBANK, ACB, AS ADMINISTRATIVE AGENT

                                                                                                                                                                                                 

LIST OF SUBORDINATED CREDITORS

                Telephone and Data Systems, Inc.

 

 

 

 

 

SCHEDULE D

SCHEDULE D TO THE SUBORDINATION AGREEMENT, DATED AS

OF JANUARY 21, 2015, AMONG TELEPHONE AND DATA

SYSTEMS, INC., THE OTHER SUBORDINATED CREDITORS,

UNITED STATES CELLULAR CORPORATION, AS A DEBTOR, AND

COBANK, ACB, AS ADMINISTRATIVE AGENT

                                                                                                                                                                                                 

SUBORDINATED DEBT

	
  Name of Debtor

  	
  Outstanding Principal

  Amount of Consolidated Funded Indebtedness

  	
  Maturity Date

  (if any)

  
	
   

  	
   

  	
   

  

 

 

 

 

 

 

SCHEDULE E

SCHEDULE E TO THE SUBORDINATION AGREEMENT, DATED AS

OF JANUARY 21, 2015, AMONG TELEPHONE AND DATA

SYSTEMS, INC., THE OTHER SUBORDINATED CREDITORS,

UNITED STATES CELLULAR CORPORATION, AS A DEBTOR, AND

COBANK, ACB, AS ADMINISTRATIVE AGENT

                                                                                                                                                                                                 

SUBORDINATED DEBT DOCUMENTS

Name of Debtor                                                                  Name
and Description of Instrument  

 

 

 

 

 

SCHEDULE F

SCHEDULE F TO THE SUBORDINATION AGREEMENT, DATED AS

OF JANUARY 21, 2015, AMONG TELEPHONE AND DATA

SYSTEMS, INC., THE OTHER SUBORDINATED CREDITORS,

UNITED STATES CELLULAR CORPORATION, AS A DEBTOR, AND

COBANK, ACB, AS ADMINISTRATIVE AGENT

                                                                                                                                                                                                 

ADDRESSES FOR NOTICES

1.1.         Address of Subordinated Creditors. 

Telephone and Data Systems,
Inc.

30 North LaSalle Street

Chicago, Illinois  60602

Attention:              President

Fax No.:                312-630-9299 

Telephone No.:    312-592-5302

With a Copy To (which
shall not itself constitute notice):

Sidley Austin LLP

One South Dearborn Street

Chicago, Illinois  60603

Attention:              William S. DeCarlo

                                General Counsel of Telephone and Data

                                  Systems, Inc.

Fax No.:                                (312) 853-7036

Telephone No.:    (312) 853-6094

1.2.         Address of Debtors. 

United States Cellular
Corporation

8410 West Bryn Mawr Avenue

Chicago, Illinois  60631

Attention:              Executive Vice President-Finance

Fax No.:                                (773) 399-8959

Telephone No.:    (773) 399-4850

 

 

 

 

With
a Copy To (which shall not itself constitute notice):

Sidley
Austin LLP

One
South Dearborn Street

Chicago,
Illinois  60603

Attention:              Stephen P. Fitzell

                                General
Counsel of the Borrower

Fax No.:                (312) 853-7036

Telephone No.:    (312) 853-7379

                                                -and-

Telephone and Data Systems, Inc.

30 North LaSalle Street

Chicago, Illinois  60602

Attention:              Corporate Treasurer

Fax No.:                (608) 830-5530

Telephone No.:    (312) 592-5308

                                                -and-

Sidley Austin LLP

One South Dearborn Street

Chicago, Illinois  60603

Attention:              William S. DeCarlo

                                General Counsel of Telephone and Data

                                  Systems, Inc.

Fax:                        (312) 853-7036

Telephone
No.:    (312) 853-6094

 

1.3.         Address of
Administrative Agent. 

CoBank, ACB

5500 South Quebec Street

Greenwood
Village, Colorado 80111

Attention:              Communications Banking Group

Fax No.:                                (303) 224-2718

Telephone No.:    (303) 740-4000

 

 

 

 

With a Copy To (which
shall not itself constitute notice):

CoBank, ACB

5500 South Quebec Street

Greenwood
Village, Colorado 80111

Attention:              Syndication Loan Accounting

Fax
No.:                (303) 740-4021

Telephone No.:    (303) 740-6447

E-Mail:
                 agency@cobank.com

 

 

 

 

EXHIBIT A

FORM OF

SUBORDINATED CREDITOR SUPPLEMENT

THIS SUBORDINATED CREDITOR SUPPLEMENT (this “Supplement”), dated as of ____________________, is made by the
undersigned.  Unless otherwise defined herein, capitalized terms used herein
and defined in the Subordination Agreement referred to below are used herein as
so defined.

RECITALS: 

A.            Reference is made to the Subordination Agreement (the “Subordination
Agreement”), dated as of January 21, 2015, by and among Telephone and
Data Systems, Inc., as a Subordinated Creditor, the other Subordinated
Creditors party thereto, United States Cellular Corporation, as a Debtor, and
CoBank, ACB, as Administrative Agent for the Senior Creditors.

B.            Pursuant to Section 2.1(b) of the Subordination
Agreement, the undersigned intends to become a “Subordinated Creditor”
for all purposes of the Subordination Agreement and executes and delivers this
Supplement in order to become a “Subordinated Creditor” for all purposes of the
Subordination Agreement;

NOW, THEREFORE, IT IS AGREED:

1.             Subordinated Creditor.  By executing
and delivering this Supplement, the undersigned hereby becomes a party to the
Subordination Agreement as a “Subordinated Creditor” thereunder
for all purposes of the Subordination Agreement, and hereby covenants and
agrees to be bound by and comply with all terms and conditions thereunder.

2.             Subordinated Debt and Subordinated Debt Documents.  By executing
and delivering this Supplement, the undersigned hereby also attaches a Supplement
to Schedule D to the Subordination Agreement and Supplement to
Schedule E to the Subordination Agreement and agrees that (a) the
“Subordinated Debt” owing to the undersigned identified and
described in such Supplement to Schedule D shall be and become
“Subordinated Debt” for all purposes of the Subordination Agreement, and
(b) the “Subordinated Debt Documents” to which the
undersigned is a party identified and described in such Supplement to
Schedule E shall be and become “Subordinated Debt Documents” for all
purposes of the Subordination Agreement.

3.             Attachment to Subordination Agreement.  The
undersigned hereby agrees that this Supplement, together with the attached Supplement
to Schedule D and Supplement to Schedule E, will be
attached to the Subordination Agreement and deemed to amend such existing Schedules. 

4.             Representations and Warranties.  The
undersigned hereby makes each of the representations and warranties contained
in Sections 5.2  and 5.3  of the Subordination Agreement on
the date hereof, after giving effect to this Supplement.

FORM OF SUBORDINATED CREDITOR SUPPLEMENT – Page 1

 

 

 

5.             Counterparts.  This Supplement may be
executed in any number of counterparts and by the different parties hereto on
separate counterparts, each of which, when so executed and delivered, shall be
an original, but all of which shall together constitute one and the same
Instrument.  A set of counterparts executed by all of the parties hereto shall
be lodged with the Borrower and the Administrative Agent.  Delivery by
facsimile by any of the parties hereto of an executed counterpart hereof shall
be effective as an original executed document and shall be considered a
representation that an original executed counterpart hereof will be delivered.

6.             GOVERNING LAW.  THIS SUPPLEMENT IS A CONTRACT UNDER THE LAWS OF THE STATE OF NEW
YORK AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY
THE LAWS OF SAID STATE (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF
LAW OTHER THAN GENERAL OBLIGATIONS LAW §5-1401).

7.             Delivery by Telecopier.  Delivery of
photocopies of the signature pages to this Agreement by facsimile shall be
effective as delivery of manually executed counterparts of this Agreement.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
BLANK]

 

FORM OF SUBORDINATED CREDITOR SUPPLEMENT – Page 2

 

 

 

IN WITNESS WHEREOF, the undersigned has caused this
SUPPLEMENT  to be duly executed and delivered as of the date first above
written.

 

	
    

  	
    

  	
    

  	
  [NAME OF
  SUBORDINATED CREDITOR],

  
	
    

  	
    

  	
    

  	
  as Subordinated
  Creditor

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
  Name:

  
	
    

  	
    

  	
    

  	
    

  	
  Title:

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
  Agreed to
  and Accepted:

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
  COBANK, ACB,

  	
    

  	
    

  	
    

  
	
  as
  Administrative Agent

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
  By:

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Name:

  	
    

  	
    

  	
    

  
	
    

  	
  Title:

  	
    

  	
    

  	
    

  

FORM OF SUBORDINATED CREDITOR SUPPLEMENT – Page 3

 

 

 

SUBORDINATED CREDITOR
SUPPLEMENT

Dated as of _________________ , _________

                                                                                                                                                                                                 

SUPPLEMENT TO SCHEDULE D TO THE SUBORDINATION

AGREEMENT, DATED AS OF JANUARY 21, 2015, AMONG

TELEPHONE AND DATA SYSTEMS, INC., THE OTHER

SUBORDINATED CREDITORS, UNITED STATES CELLULAR

CORPORATION, AS A DEBTOR, AND COBANK, ACB, AS ADMINISTRATIVE AGENT

                                                                                                                                                                                                 

SUBORDINATED DEBT

	
  Name of Debtor

  	
  Outstanding Principal

  Amount of Consolidated Funded Indebtedness

  	
  Maturity Date

  (if any)

  
	
   

  	
   

  	
   

  

 

 

 

 

SUBORDINATED CREDITOR
SUPPLEMENT

dated as of _________________, __________

                                                                                                                                                                                                 

SUPPLEMENT TO SCHEDULE E TO THE SUBORDINATION

AGREEMENT, DATED AS OF JANUARY 21, 2015, AMONG

TELEPHONE AND DATA SYSTEMS, INC., THE OTHER

SUBORDINATED CREDITORS, UNITED STATES CELLULAR

CORPORATION, AS A DEBTOR, AND COBANK, ACB, AS ADMINISTRATIVE AGENT

                                                                                                                                                                                                 

SUBORDINATED DEBT DOCUMENTS

Name of Debtor                                                                  Name
and Description of Instrument

 

 

 

 

EXHIBIT B

FORM OF

SUBORDINATED DEBT SUPPLEMENT

THIS SUBORDINATED DEBT SUPPLEMENT (this “Supplement”), dated as of _________________, is made by the
undersigned Subordinated Creditor.  Unless otherwise defined herein,
capitalized terms used herein and defined in the Subordination Agreement
referred to below are used herein as so defined.

RECITALS: 

A.            Reference is made to the Subordination Agreement (the “Subordination
Agreement”), dated as of January 21, 2015, by and among Telephone and
Data Systems, Inc., as a Subordinated Creditor, the other Subordinated
Creditors party thereto, United States Cellular Corporation, as a Debtor, and
CoBank, ACB, as Administrative Agent for the Senior Creditors.

B.            Pursuant to Section 2.1(c)  of the
Subordination Agreement, the undersigned Subordinated Creditor intends that the
“Subordinated Debt” and the “Subordinated Debt Documents” identified and
described on the Schedules attached hereto shall be and become part of the
“Subordinated Debt” and “Subordinated Debt Documents” for all purposes of the
Subordination Agreement and delivers this Supplement so that such “Subordinated
Debt” and “Subordinated Debt Documents” shall be and become part of the “Subordinated
Debt” and “Subordinated Debt Documents” for all purposes of the Subordination
Agreement;

NOW, THEREFORE, IT IS AGREED:

1.             Subordinated Debt and
Subordinated Debt Documents.  By executing and delivering this Supplement, the
undersigned Subordinated Creditor hereby attaches a Supplement to
Schedule D to the Subordination Agreement and Supplement to
Schedule E to the Subordination Agreement and agrees that (a) the
“Subordinated Debt” owing to the undersigned Subordinated Creditor identified
and described on such Supplement to Schedule D shall be and become
“Subordinated Debt” for all purposes of the Subordination Agreement and,
(b) the “Subordinated Debt Documents” to which the undersigned
Subordinated Creditor is a party identified in such Supplement to
Schedule E shall be and become “Subordinated Debt Documents” for all
purposes of the Subordination Agreement.

2.             Attachment to Subordination Agreement.  The
undersigned Subordinated Creditor hereby agrees that this Supplement, together
with the attached Supplement to Schedule D and Supplement to
Schedule E, will be attached to the Subordination Agreement and deemed
to amend such existing Schedules. 

3.             Representations and Warranties.  The
undersigned Subordinated Creditor hereby certifies that each of the
representations and warranties contained in Sections 5.2  and 5.3 
of the Subordination Agreement were true as of the date as of which they were
made and are true at and as of the date hereof.

FORM OF SUBORDINATED DEBT SUPPLEMENT – Page 1

 

 

 

4.             Counterparts.  This Supplement may be
executed in any number of counterparts and by the different parties hereto on
separate counterparts, each of which, when so executed and delivered, shall be
an original, but all of which shall together constitute one and the same
Instrument.  A set of counterparts executed by all of the parties hereto shall
be lodged with the Borrower and the Administrative Agent.  Delivery by
facsimile by any of the parties hereto of an executed counterpart hereof shall
be effective as an original executed document and shall be considered a
representation that an original executed counterpart hereof will be delivered.

5.             GOVERNING. LAW.  THIS SUPPLEMENT IS A CONTRACT UNDER THE LAWS OF THE
STATE OF NEW YORK AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF SAID STATE (EXCLUDING THE LAWS APPLICABLE TO
CONFLICTS OR CHOICE OF LAW OTHER THAN GENERAL OBLIGATIONS LAW §5-1401).

6.             Delivery by Telecopier.  Delivery of
photocopies of the signature pages to this Agreement by facsimile shall be
effective as delivery of manually executed counterparts of this Agreement.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
BLANK]

 

FORM OF SUBORDINATED DEBT SUPPLEMENT – Page 2

 

 

 

IN
WITNESS WHEREOF, the undersigned Subordinated Creditor has caused this
Supplement to be duly executed and delivered as of the date first above
written.

 

	
    

  	
    

  	
    

  	
  [NAME OF
  SUBORDINATED CREDITOR],

  
	
    

  	
    

  	
    

  	
  as Subordinated
  Creditor

  
	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
  By:

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
  Name:

  
	
    

  	
    

  	
    

  	
    

  	
  Title:

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
  Agreed to
  and Accepted:

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
  COBANK, ACB,

  	
    

  	
    

  	
    

  
	
  as
  Administrative Agent

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  
	
  By:

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Name:

  	
    

  	
    

  	
    

  
	
    

  	
  Title:

  	
    

  	
    

  	
    

  

FORM OF SUBORDINATED DEBT SUPPLEMENT – Page 3

 

 

 

SUBORDINATED DEBT
SUPPLEMENT

dated as of _________________ , _________

                                                                                                                                                                                                 

SUPPLEMENT TO SCHEDULE D TO THE SUBORDINATION

AGREEMENT, DATED AS OF JANUARY 21, 2015, AMONG

TELEPHONE AND DATA SYSTEMS, INC., THE OTHER

SUBORDINATED CREDITORS, UNITED STATES CELLULAR

CORPORATION, AS A DEBTOR, AND COBANK, ACB, AS ADMINISTRATIVE AGENT

                                                                                                                                                                                                 

SUBORDINATED DEBT

	
  Name of Debtor

  	
  Outstanding Principal

  Amount of Consolidated Funded Indebtedness

  	
  Maturity Date

  (if any)

  
	
   

  	
   

  	
   

  

 

 

 

 

 

SUBORDINATED DEBT
SUPPLEMENT

dated as of _________________, __________

                                                                                                                                                                                                 

SUPPLEMENT TO SCHEDULE E TO THE SUBORDINATION

AGREEMENT, DATED AS OF JANUARY 21, 2015, AMONG

TELEPHONE AND DATA SYSTEMS, INC., THE OTHER

SUBORDINATED CREDITORS, UNITED STATES CELLULAR

CORPORATION, AS A DEBTOR, AND COBANK, ACB, AS ADMINISTRATIVE AGENT

                                                                                                                                                                                                 

SUBORDINATED DEBT DOCUMENTS

Name of Debtor                                                                  Name
and Description of Instrument  

 

 

 

 

EXHIBIT G-1

 

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Not Partnerships For
U.S. Federal Income Tax Purposes)

 

Reference is hereby made to the Credit Agreement,
dated as of January 21, 2015 (as amended, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among United States Cellular
Corporation, a Delaware corporation, CoBank, ACB, as Administrative Agent and a
Lender and the Lenders from time to time party thereto.  

 

Pursuant to the provisions of Section 3.01(e)
of the Credit Agreement, the undersigned hereby certifies that (i) it is the
sole record and beneficial owner of the Loan(s) (as well as any Note(s)
evidencing such Loan(s)) in respect of which it is providing this certificate,
(ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code,
(iii) it is not a ten percent shareholder of the Borrower within the meaning of
Section 871(h)(3)(B) of the Code and (iv) it is not a controlled foreign
corporation related to the Borrower as described in Section 881(c)(3)(C) of the
Code.

 

The undersigned has furnished the Administrative Agent
and the Borrower with a certificate of its non-U.S. Person status on IRS Form
W-8BEN or IRS Form W-8BEN-E.  By executing this certificate, the undersigned
agrees that (1) if the information provided on this certificate changes, the
undersigned shall promptly so inform the Borrower and the Administrative Agent,
and (2) the undersigned shall have at all times furnished the Borrower and the
Administrative Agent with a properly completed and currently effective certificate
in either the calendar year in which each payment is to be made to the
undersigned, or in either of the two calendar years preceding such payments. 

 

Unless otherwise defined herein, terms defined in the
Credit Agreement and used herein shall have the meanings given to them in the
Credit Agreement.

 

	
  [NAME OF
  LENDER]

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  By:

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Name:

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Title:

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  Date:

  	
    

  	
    

  	
    

  	
  , 20[  ]

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  

 

 

 

 

 

EXHIBIT G-2

 

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Not Partnerships
For U.S. Federal Income Tax Purposes)

 

Reference
is hereby made to the Credit Agreement, dated as of January 21, 2015 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among United States Cellular Corporation, a Delaware
corporation, CoBank, ACB, as Administrative Agent and a Lender and the Lenders
from time to time party thereto. 

 

Pursuant
to the provisions of Section 3.01(e) of the Credit Agreement, the
undersigned hereby certifies that (i) it is the sole record and beneficial
owner of the participation in respect of which it is providing this
certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A)
of the Code, (iii) it is not a ten percent shareholder of the Borrower within
the meaning of Section 871(h)(3)(B) of the Code, and (iv) it is not a
controlled foreign corporation related to the Borrower as described in Section
881(c)(3)(C) of the Code.

 

The
undersigned has furnished its participating Lender with a certificate of its
non-U.S. Person status on IRS Form W-8BEN or IRS Form W-8BEN-E.  By executing
this certificate, the undersigned agrees that (1) if the information provided
on this certificate changes, the undersigned shall promptly so inform such
Lender in writing, and (2) the undersigned shall have at all times furnished
such Lender with a properly completed and currently effective certificate in
either the calendar year in which each payment is to be made to the
undersigned, or in either of the two calendar years preceding such payments.

 

Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

	
  [NAME OF
  PARTICIPANT]

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  By:

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Name:

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Title:

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  Date:

  	
    

  	
    

  	
    

  	
  , 20[  ]

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  

 

 

 

 

 

EXHIBIT G-3

 

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Partnerships For
U.S. Federal Income Tax Purposes)

 

Reference
is hereby made to the Credit Agreement, dated as of January 21, 2015 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among United States Cellular Corporation, a Delaware
corporation, CoBank, ACB, as Administrative Agent and a Lender and the Lenders
from time to time party thereto. 

  

Pursuant
to the provisions of Section 3.01(e) of the Credit Agreement, the
undersigned hereby certifies that (i) it is the sole record owner of the
participation in respect of which it is providing this certificate, (ii) its
direct or indirect partners/members are the sole beneficial owners of such
participation, (iii) with respect such participation, neither the undersigned
nor any of its direct or indirect partners/members is a bank extending credit
pursuant to a loan agreement entered into in the ordinary course of its trade
or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none
of its direct or indirect partners/members is a ten percent shareholder of the
Borrower within the meaning of Section 871(h)(3)(B) of the Code and (v) none of
its direct or indirect partners/members is a controlled foreign corporation
related to the Borrower as described in Section 881(c)(3)(C) of the Code. 

 

The
undersigned has furnished its participating Lender with IRS Form W-8IMY
accompanied by one of the following forms from each of its partners/members
that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or
IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an IRS Form W-8BEN
or IRS Form W-8BEN-E from each of such partner’s/member’s beneficial owners
that is claiming the portfolio interest exemption.  By executing this
certificate, the undersigned agrees that (1) if the information provided on
this certificate changes, the undersigned shall promptly so inform such Lender
and (2) the undersigned shall have at all times furnished such Lender with a
properly completed and currently effective certificate in either the calendar
year in which each payment is to be made to the undersigned, or in either of
the two calendar years preceding such payments.

 

Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

	
  [NAME OF
  PARTICIPANT]

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  By:

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Name:

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Title:

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  Date:

  	
    

  	
    

  	
    

  	
  , 20[  ]

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  

 

 

 

 

 

EXHIBIT G-4

 

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Partnerships For U.S.
Federal Income Tax Purposes)

 

Reference
is hereby made to the Credit Agreement, dated as of January 21, 2015 (as
amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among United States Cellular Corporation, a Delaware
corporation, CoBank, ACB, as Administrative Agent and a Lender and the Lenders
from time to time party thereto.  

 

Pursuant
to the provisions of Section 3.01(e) of the Credit Agreement, the undersigned
hereby certifies that (i) it is the sole record owner of the Loan(s) (as well
as any Note(s) evidencing such Loan(s)) in respect of which it is providing
this certificate, (ii) its direct or indirect partners/members are the sole
beneficial owners of such Loan(s) (as well as any Note(s) evidencing such
Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit
Agreement or any other Loan Document, neither the undersigned nor any of its
direct or indirect partners/members is a bank extending credit pursuant to a
loan agreement entered into in the ordinary course of its trade or business
within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct
or indirect partners/members is a ten percent shareholder of the Borrower
within the meaning of Section 871(h)(3)(B) of the Code and (v) none of its
direct or indirect partners/members is a controlled foreign corporation related
to the Borrower as described in Section 881(c)(3)(C) of the Code.

 

The
undersigned has furnished the Administrative Agent and the Borrower with IRS
Form W-8IMY accompanied by one of the following forms from each of its
partners/members that is claiming the portfolio interest exemption: (i) an IRS
Form W-8BEN or IRS Form W-8BEN-E or (ii) an IRS Form W-8IMY accompanied by an
IRS Form W-8BEN or IRS Form W-8BEN-E from each of such partner’s/member’s
beneficial owners that is claiming the portfolio interest exemption.  By
executing this certificate, the undersigned agrees that (1) if the information provided
on this certificate changes, the undersigned shall promptly so inform the
Borrower and the Administrative Agent, and (2) the undersigned shall have at
all times furnished the Borrower and the Administrative Agent with a properly
completed and currently effective certificate in either the calendar year in
which each payment is to be made to the undersigned, or in either of the two
calendar years preceding such payments.

 

Unless
otherwise defined herein, terms defined in the Credit Agreement and used herein
shall have the meanings given to them in the Credit Agreement.

 

	
  [NAME OF
  LENDER]

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  By:

  	
    

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Name:

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
    

  	
  Title:

  	
    

  	
    

  
	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  	
    

  
	
  Date:

  	
    

  	
    

  	
    

  	
  , 20[  ]EX-4.2

 Exhibit 4.2 

EXECUTION VERSION 
 THIRD
AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT 
 THIS THIRD AMENDED AND RESTATED INVESTORS RIGHTS AGREEMENT (this
“Agreement”) is made as of November     , 2012, by and among BeneChill, Inc., a Delaware corporation (the “Company”), certain holders of Series A Preferred as listed on
Schedule 1 attached hereto (each, a “Series A Investor” and, collectively, the “Series A Investors”), certain holders of Series B Preferred as listed on Schedule 2 attached
hereto (each a “Series B Investor” and, collectively, the “Series B Investors”), certain holders of Series C Preferred as listed on Schedule 3 attached hereto (each a
“Series C Investor” and, collectively, the “Series C Investors”), certain holders of Series D Stock as listed on Schedule 4 attached hereto (each a “Series D Investor” and,
collectively, the “Series D Investors”), and certain holders of Series E Preferred as listed on Schedule 5 attached hereto (each a “Series E Investor” and, collectively, the
“Series E Investors”). The Series A Investors, the Series B Investors, the Series C Investors, the Series D Investors, the Series D-1 Investors and the
Series E Investors are collectively referred to as the “Investors”. 
 WHEREAS, concurrently with the execution
of this Agreement, the Company has entered into a Series E Preferred Stock and Warrant Purchase Agreement, dated of even date herewith (the “Purchase Agreement”), pursuant to which the Company has agreed to issue and sell shares of
the Series E Preferred and warrants to purchase shares of Series E Preferred to the Series E Investors, to the extent and in such amounts as set forth therein. 

WHEREAS, the Company, the Investors who are parties to the Second Amended and Restated Investors Rights Agreement dated
December 2, 2011, as amended by Amendment No. 1 to Second Amended and Restated Investors Rights Agreement dated November 6, 2012 (the “Prior Agreement”), entered into in connection with the Company’s sale of the
Series D Preferred, desire to supersede and entirely replace the Prior Agreement with this Agreement; and 
 WHEREAS, as a
condition to the obligations of the Series E Investors under the Purchase Agreement, the Company has agreed to grant the registration rights with respect to the Series E Preferred pursuant to this Agreement on the terms and conditions set
forth herein. 
 WHEREAS, this Amendment is being entered into pursuant to Section 6.8 of the Purchase Agreement. 

WHEREAS, capitalized terms used herein without definition have the meanings specified in the Purchase Agreement. 

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the Company and the Investors hereby acknowledge and agree as follows: 

 ARTICLE I. 

DEFINITIONS 
 As used in
this Agreement, the following terms shall have the meanings as set forth herein: 
 Section 1.1. “Accountants”
has the meaning specified in Section 3.2. 
 Section 1.2. “Affiliate” means any Person who controls, is
controlled by or is under common control with any other Person or Persons. For the purposes of this definition, “control” has the meaning specified as of the date of this Agreement for that word in Rule 405 promulgated by the Commission
under the Securities Act. 
 Section 1.3. “Agreement” has the meaning specified in the first paragraph of this
Agreement. 
 Section 1.4. “Board” means the Board of Directors of the Company. 

Section 1.5. “Commission” means the United States Securities and Exchange Commission, and any successor thereto.

 Section 1.6. “Common Stock” means the Company’s common stock, $.001 par value per share. 

Section 1.7. “Company” has the meaning specified in the first paragraph of this Agreement. 

Section 1.8. “Conversion Shares” means any shares of Common Stock issuable upon conversion of the Preferred
Stock. 
 Section 1.9. “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated from time to time thereunder. 
 Section 1.10. “Holders” has the meaning specified in
Section 3.7. 
 Section 1.11. “Indemnified Party” has the meaning specified in Section 2.6(c). 

Section 1.12. “Indemnifying Party” has the meaning specified in Section 2.6(c). 

Section 1.13. “Indemnitee” has the meaning specified in Section 2.6(b). 

Section 1.14. “Initiating Investors” has the meaning specified in Section 2.1(e). 

Section 1.15. “Intuitive Stockholder(s)” means Intuitive BeneChill, LLC, Brian Eliot Peierls, E. Jeffrey Peierls,
U.D. E.F Peierls for Brian E. Peierls, U.D. E.F. Peierls for E. Jeffrey Peierls, U.D. J.N. Peierls for Brian Eliot Peierls, U.D. J.N. Peierls for E. Jeffrey Peierls, U. D. E.S. Peierls for E. F. Peierls et al, UW E.S. Peierls for Brian E. Peierls
Accumulation, UW E.S. Peierls for E. Jeffrey Peierls Accumulation, UW J.N. Peierls for Brian E. Peierls, UW J.N. Peierls for E. Jeffrey Peierls, The Peierls Foundation, Inc. (Non-Profit), and U.D. Ethel F. Peierls Charitable Lead Trust. 

  
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 Section 1.16. “Investors” has the meaning specified in the first
paragraph of this Agreement. 
 Section 1.17. “Losses” has the meaning specified in Section 2.6(a). 

Section 1.18. “Major Investor” has the meaning specified in Section 3.3(a). 

Section 1.19. “Option Pool” has the meaning specified in Section 4.1(a). 

Section 1.20. “Participation Notice” has the meaning specified in Section 2.2(a). 

Section 1.21. “Person” includes all natural persons, corporations, business trusts, associations, limited
liability companies, partnerships, joint ventures, governments, agencies, political subdivisions and other entities of whatever nature. 

Section 1.22. “Purchase Agreement” has the meaning specified in the Recitals. 

Section 1.23. “Preferred Stock” means the Series A Preferred, the Series B Preferred, the Series C Preferred, the
Series D Preferred, the Series D-1 Preferred and the Series E Preferred. 
 Section 1.24. “Register,”
“registered” and “registration” refer to a registration effected by preparing and filing a registration statement in compliance with the Securities Act and the declaration or ordering of the effectiveness of such registration
statement. 
 Section 1.25. “Registrable Common” means (a) any shares of Common Stock which have been
issued or are issuable upon the conversion of the Preferred Stock (including shares of Preferred Stock issued upon exercise of the Warrants), (b) any such shares of Common Stock held by an individual or entity that has been made a party to this
Agreement under Section 6.10 hereof to the extent provided when such rights are granted, and (c) any shares of Common Stock issued as a dividend, stock split, reclassification, recapitalization or other distribution with respect to or in
exchange for or replacement of any Registrable Common; provided, however, that shares of Common Stock shall no longer be Registrable Common (i) when they shall have been effectively registered under the Securities Act and sold by the Investor
thereof in accordance with such registration or sold by the Investor pursuant to Section 4(1) of the Securities Act or Rule 144, or (ii) when registration under the Securities Act would no longer be required for the immediate public
distribution of all such shares of Common Stock as a result of the provisions of Rule 144 so that all transfer restrictions and legends with respect thereto are removed upon consummation of such sale. 

Section 1.26. “Registration Notice” has the meaning specified in Section 2.1(a)(i). 

Section 1.27. “Registration Request” has the meaning specified in Section 2.1(a). 

  
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 Section 1.28. “Rule 144” means Rule 144 promulgated by the
Commission under the Securities Act, as such rule may be amended from time to time, or any successor rule thereto. 
 Section 1.29.
“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated from time to time thereunder. 

Section 1.30. “Series A Investor(s)” has the meaning specified in the first paragraph of this Agreement. 

Section 1.31. “Series A Preferred” means (a) 1,027,942 (subject to appropriate adjustment to reflect stock
splits, stock dividends, reorganizations and other capitalization changes effected after the date hereof) outstanding shares of the Company’s Series A Convertible Preferred Stock, $.001 par value per share, and any shares of Series A Preferred
issued in payment of a dividend upon any share of Series A Preferred and (b) any other Registrable Common issued as a dividend or other distribution with respect to, or in replacement of, any Series A Preferred. 

Section 1.32. “Series B Investor(s)” has the meaning specified in the first paragraph of this Agreement. 

Section 1.33. “Series B Preferred” means (a) 4,180,910 (subject to appropriate adjustment to reflect stock
splits, stock dividends, reorganizations and other capitalization changes effected after the Closing Date) shares of the Company’s Series B Convertible Preferred Stock, $.001 par value per share, and any shares of Series B Preferred issued in
payment of a dividend upon any share of Series B Preferred and (b) any other Registrable Common issued as a dividend or other distribution with respect to, or in replacement of, any Series B Preferred. 

Section 1.34. “Series C Investor(s)” has the meaning specified in the first paragraph of this Agreement. 

Section 1.35. “Series C Preferred” means (a) up to 7,429,223 (subject to appropriate adjustment to reflect
stock splits, stock dividends, reorganizations and other capitalization changes effected after the Closing Date) shares of the Company’s Series C Convertible Preferred Stock, $.001 par value per share, and any shares of Series C Preferred
issued in payment of a dividend upon any share of Series C Preferred and (b) any other Registrable Common issued as a dividend or other distribution with respect to, or in replacement of, any Series C Preferred. 

Section 1.36. “Series D Investor(s)” has the meaning specified in the first paragraph of this Agreement. 

Section 1.37. “Series D Stock” means collectively (a) up to 8,932,635 (subject to appropriate adjustment to
reflect stock splits, stock dividends, reorganizations and other capitalization changes effected after the Closing Date) shares of the Company’s Series D Convertible Preferred Stock, $.001 par value per share (the “Series D
Preferred”), and any shares of Series D Preferred issued in payment of a dividend upon any share of Series D Preferred and (b) up to 2,891,453 (subject to appropriate adjustment to reflect stock splits, stock dividends, reorganizations
and other capitalization changes effected after the Closing Date) shares of the Company’s Series D-1 Convertible Preferred Stock, $.001 par value per share (the “Series D-1  

  
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Preferred”), and any shares of Series D-1 Preferred issued in payment of a dividend upon any share of Series D-1 Preferred (c) any other Registrable Common issued as a dividend
or other distribution with respect to, or in replacement of, any Series D Preferred or Series D-1 Preferred. 
 Section 1.38.
“Series E Investor(s)” has the meaning specified in the first paragraph of this Agreement. 
 Section 1.39.
“Series E Preferred” means (a) up to 8,383,378 (subject to appropriate adjustment to reflect stock splits, stock dividends, reorganizations and other capitalization changes effected after the Closing Date) shares of the
Company’s Series E Convertible Preferred Stock, $.001 par value per share, and any shares of Series E Preferred issued in payment of a dividend upon any share of Series E Preferred and (b) any other Registrable Common issued as a dividend
or other distribution with respect to, or in replacement of, any Series E Preferred. 
 Section 1.40. “Voting
Agreement” means the Fourth Amended and Restated Voting Agreement, among the Company and certain stockholders named therein, dated of even date herewith, as may be amended from time to time. 

Section 1.41. “Warrants” mean (i) the warrants to purchase shares of Series E Preferred dated issued
pursuant to the terms of the Purchase Agreement; (ii) the warrants to purchase shares of Series D Preferred, issued pursuant to the terms of that certain Note Purchase Agreement dated October 29, 2010, as amended; (iii) the warrants
to purchase shares of Series C Preferred Stock dated July 14, 2009; and (iv) the warrant to purchase shares of the Series B Preferred dated February 29, 2008. 

ARTICLE II. 

REGISTRATION RIGHTS 

Section 2.1. Required Registration. 

(a) Commencing on the date 90 days following the Company’s initial public offering of Common Stock registered under the
Securities Act, the Investors holding a majority of the then outstanding Preferred Stock (voting together as a single class on an as-converted to Common Stock basis) will have the right to request in writing two registrations of their shares of
Registrable Common (each, a “Registration Request”). If the Company receives such Registration Request, it shall: 

(i) promptly give written notice to all other holders of record of Registrable Common that such registration is to be effected
(“Registration Notice”); and 
 (ii) subject to the limitations and requirements set forth in this
Section 2.1, use its reasonable best efforts to prepare and file a registration statement under the Securities Act, covering the Registrable Common held by Investors holding Preferred Stock which is the subject of the Registration Request and
such additional Registrable Common for which it has received written requests to register by such other Investors within 45 days after the delivery of the Registration Notice, and shall use its best efforts to cause such registration statement to
become effective as soon as is practicable after receipt of the Registration Request. 

  
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 (b) If the Company is required to use Form S-1, the Company shall be obligated to
(a) proceed with filing the registration statement only if the anticipated gross offering proceeds based upon the public offering price per share (as proposed by the underwriters, if any) is at least $5,000,000 and (b) prepare, file
and cause to become effective no more than two registration statements on Form S-1 pursuant to this Section 2.1. If the Company meets the requirements for using Form S-3, the Company shall be obligated to (a) proceed with filing the
registration statement (without any requirement as to the percentage of Registrable Common included in such statement) but only if the anticipated gross offering proceeds based upon the public offering price per share is at least $2,000,000 and
(b) prepare, file and cause to become effective no more than two registration statements on Form S-3 in any 12-month period. 

(c) If the Company shall furnish to such Investor(s) within 30 days of a Registration Request a certificate signed by the
President of the Company stating that (i) the Company, pursuant to an action approved by the Board has already a present plan to commence preparation of a registration statement and to file the same within 90 days, or (ii) in the good
faith judgment of the Board it would be seriously detrimental to the Company and its stockholders for such registration statement to be filed on or before the date filing would be required under this Agreement and it is therefore essential to defer
the filing of such registration statement, the Company shall have the right to defer such filing for a period ending not later than 90 days from the date of the President’s certificate required herein. The Company may delay a request for
registration not more than once in any 12-month period. 
 (d) The shares of Preferred Stock submitted for registration
pursuant to a Registration Request shall be converted into Common Stock or such Investor(s) shall deliver a written commitment to the Company to convert such Preferred Stock into shares of Common Stock simultaneously with the closing of the offering
covered by such registration statement. 
 (e) If the Investors submitting the Registration Request (the “Initiating
Investors”) intend to distribute the Registrable Common covered by such request by means of an underwriting, the Registration Request shall so indicate and the Company shall include such information in the Registration Notice. The Company
shall select the underwriter, with the approval of a majority in voting power of the Initiating Investors, which approval shall not be unreasonably withheld. Notwithstanding any other provision of this Section 2, if the managing underwriter
advises the Initiating Investors in writing that marketing factors require reducing the number of shares to be underwritten, then the number of shares of Registrable Common included in the underwriting shall be reduced pro rata among the security
holders in each class of stock requesting such registration in the following order: (i) first, the shares of stock held by entities or persons who are not parties to this Agreement, until such shares are eliminated; (ii) second, the shares
of stock being sold for the Company’s account, until such shares are eliminated; and (iii) third, the Registrable Common held by the Investors requesting registration pursuant to Section 2.2 and the Registrable Common held by the
Initiating Investors requesting registration pursuant to Section 2.1. 

  
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 (f) In the event that the Investors holding a majority of the Registrable Common
for which registration has been requested pursuant to this Section 2.1 determine for any reason not to proceed with a registration at any time before a registration statement has been declared effective by the Commission, and such registration
statement, if theretofore filed with the Commission, is withdrawn with respect to the Registrable Common covered thereby, and, unless the withdrawal is based on a materially adverse change in the condition, business or prospects of the Company from
that provided in the public disclosure of the Company at the time of receipt of the Registration Request, the Investors holding such Registrable Common agree to bear their own expenses incurred in connection therewith and to reimburse the Company
for the expenses incurred by it attributable to the registration of such Registrable Common, and if such Investors in fact so reimburse the Company, then the Investors holding such Registrable Common shall not be deemed to have exercised their right
to require the Company to register Registrable Common pursuant to this Section 2.1 (in the alternative, the Investors holding such Registrable Common may elect not to pay the registration expenses therefor, and forfeit their right to one demand
registration statement pursuant to Section 2.1(a)). 
 (g) If, at the time a Registration Request is received by the
Company, the Company has already determined (by the vote or written consent of the Board) to proceed with the actual preparation and filing of a registration statement under the Securities Act in connection with the Company’s proposed offer and
sale for cash of its securities, the Registration Request shall be deemed to have been given pursuant to Section 2.2 rather than this Section 2.1, and the rights and obligations of the Investors and the Company with respect to the
Registration Request shall be governed by Section 2.2 hereof. 
 Section 2.2. Incidental Registration. 

(a) Each time the Company shall determine to proceed with the actual preparation and filing of a registration statement under
the Securities Act in connection with the proposed offer and sale for cash of any of its securities by it or any of its security holders (other than in response to a Registration Request or a registration on Form S-8 or Form S-4 or their
equivalents), the Company shall give written notice of its determination to all record Investors holding Registrable Common (a “Participation Notice”). Each Investor of Registrable Common desiring to include in any such registration
statement all or any part of the Registrable Common held by it shall, within 20 days after receipt of a Participation Notice, so notify the Company in writing. The Company will, except as herein provided, cause all such Registrable Common, the
record Investors of which have so requested registration thereof, to be included in such registration statement, provided that the shares of Preferred Stock submitted for registration shall be converted into Common Stock in such registration
statement or such Investor shall deliver a written commitment to the Company to convert such Preferred Stock into shares of Common Stock immediately prior to the closing of the offering covered by such registration statement, all to the extent
requisite to permit the sale or other disposition by the 

  
 7 

 
prospective seller or sellers of the Registrable Common to be so registered. If any registration pursuant to this Section 2.2 shall be underwritten in whole or in part, the Company may
require that the Registrable Common requested for inclusion pursuant to this Section 2.2 be included in the underwriting on the same terms and conditions as the securities otherwise being sold through the underwriters. 

(b) Nothing contained in this Agreement shall prevent the Company from, at any time, abandoning or delaying any such
registration initiated by it. If the Company determines not to proceed with a registration after the registration statement has been filed with the Commission and the Company’s decision not to proceed is primarily based upon the anticipated
public offering price of the securities to be sold by the Company, the Company shall promptly complete the registration for the benefit of those selling security Investors who wish to proceed with a public offering of their securities and who bear
all expenses incurred by the Company thereafter as the result of such registration arising after the Company has decided not to proceed; provided, however, that such selling security Investors shall not be required to bear the expense of such
registration if such registration qualifies as a required registration pursuant to Section 2.1 hereof and limitations regarding the number of such required registrations have not been exceeded. 

(c) If in the good faith judgment of the managing underwriter of any such public offering, the inclusion of all of the
Registrable Common originally covered by a request for registration pursuant to this Section 2.2 would interfere with the successful marketing of the shares of stock offered by the Company, then the Company shall be required to include in the
offering only that number of such securities, including Registrable Securities, which the underwriters and the Company in their sole discretion determine will not jeopardize the success of the offering. If the underwriters determine that less than
all of the Registrable Securities requested to be registered can be included in such offering, then the Registrable Securities that are included in such offering shall be allocated among the selling Holders in proportion (as nearly as practicable
to) the number of Registrable Securities owned by each selling Holder or in such other proportions as shall mutually be agreed to by all such selling Holders. To facilitate the allocation of shares in accordance with the above provisions, the
Company or the underwriters may round the number of shares allocated to any Holder to the nearest 100 shares. Notwithstanding the foregoing, in no event shall (i) the number of Registrable Securities included in the offering be reduced unless
all other securities (other than securities to be sold by the Company) are first entirely excluded from the offering, or (ii) the number of Registrable Securities included in the offering be reduced below 25% of the total number of securities
included in such offering, unless such offering is the IPO, in which case the selling Holders may be excluded further if the underwriters make the determination described above and no other stockholder’s securities are included in such
offering. 
 Section 2.3. Underwriting Arrangements Applicable to Required and Incidental Registrations. The right of any
Investor to include Registrable Common in any underwritten registration pursuant to this Agreement shall be conditioned upon such Investor’s participation in such underwriting and the inclusion of such Investor’s Registrable Common in the
underwriting. All Investors proposing to distribute their securities through such underwriting shall (together with the Company) enter into an underwriting agreement in customary form with the underwriter or underwriters selected. 

  
 8 

 Section 2.4. Registration Procedures. When the Company is required by the
terms of this Agreement to effect the registration of Registrable Common under the Securities Act, the Company will do the following: 
 (a)
Filing. Prepare and file with the Commission a registration statement with respect to such securities, and use its best efforts to cause such registration statement to become and remain effective for such period set forth in
Section 2.4(b); 
 (b) Period of Effectiveness. Prepare and file with the Commission such amendments to such registration
statement and supplements to the prospectus contained therein as may be necessary to keep such registration statement effective for such period as may be reasonably necessary to effect the sale of such securities, provided, however, such period
shall not exceed the earlier to occur of (i) the completion by the underwriters of the distribution pursuant to such registration statement (or the sale of all of the Registrable Common by the Investors included in such registration statement
pursuant to other transactions) or (ii) (A) six months; 
 (c) Copies. Furnish to the Investors participating in such
registration and to the underwriters of the securities being registered such reasonable number of copies of the registration statement, preliminary prospectus, final prospectus and such other documents as such underwriters may reasonably request in
order to facilitate the public offering of such securities; 
 (d) Blue Sky. Use its best efforts to register or qualify the
securities covered by such registration statement under such state securities or blue sky laws of such jurisdictions as such participating Investors may reasonably request in writing, except that the Company shall not for any purpose be required to
execute a general consent to service of process or to qualify to do business as a foreign corporation in any jurisdiction wherein it is not so qualified; 

(e) Notification. Notify the Investors participating in such registration, promptly after it shall receive notice thereof, of the time
when such registration statement has become effective or a supplement to any prospectus forming a part of such registration statement has been filed; 

(f) Amendment Notice. Notify such Investors promptly of any request by the Commission for the amending or supplementing of such
registration statement or prospectus or for additional information; 
 (g) Amendment. Prepare and file with the Commission, promptly
upon the request of any such Investors, any amendments or supplements to such registration statement or prospectus which, in the opinion of counsel for such Investors (and reasonably concurred in by counsel for the Company), is required under the
Securities Act or the rules and regulations thereunder in connection with the distribution of the Registrable Common by such Investor; 

(h) Update. Prepare and promptly file with the Commission and promptly notify such Investors of the filing of such amendment or
supplement to such registration statement or prospectus as may be necessary to correct any statements or omissions if, at the time when a 

  
 9 

 
prospectus relating to such securities is required to be delivered under the Securities Act, any event shall have occurred as the result of which any such prospectus or any other prospectus as
then in effect would include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein, in light of the circumstances in which they were made, not misleading; 

(i) Stop Orders. Advise such Investors, promptly after it shall receive notice or obtain knowledge thereof, of the issuance of any stop
order by the Commission suspending the effectiveness of such registration statement or the initiation or threatening of any proceeding for that purpose and promptly use its best efforts to prevent the issuance of any stop order or to obtain its
withdrawal if such stop order should be issued; 
 (j) Compliance Issues. Not file any amendment or supplement to such registration
statement or prospectus to which a majority in voting power of such Investors shall have reasonably objected on the grounds that such amendment or supplement does not comply in all material respects with the requirements of the Securities Act or the
rules and regulations promulgated thereunder, after having been furnished with a copy thereof at least two business days prior to the filing thereof (provided, however, that any reports filed pursuant to the Exchange Act need not be reviewed nor
approved by such Investors), unless in the opinion of counsel for the Company the filing of such amendment or supplement is reasonably necessary to protect the Company from any liabilities under any applicable federal or state law and such filing
will not violate applicable law; 
 (k) Opinion of Counsel, Comfort Letter. In the event of an underwritten offering, at the request
of any such Investor, furnish (i) a legal opinion of its counsel, dated as of the closing date of the offering, addressed to the underwriters, if any, and to the Investor or Investors making such request; and (ii) customary “cold
comfort letters” from its independent certified public accountants, dated as of the closing date of the offering, addressed to the underwriters, if any, and to the Investor or Investors making such request, in each case in form and substance as
is customary in an underwritten public offering; and 
 (l) Listing on National Exchange. Use its best efforts (i) to cause all
the Registrable Common to be listed on a national securities exchange (if the Registrable Common is not already so listed) and on each additional national securities exchange on which similar securities issued by the Company are then listed, if the
listing of the Registrable Common is then permitted under the rules of such exchange, or (ii) to secure designation of all the Registrable Common as a NASDAQ “national market system security” within the meaning of Rule 11Aa2-1 of the
Commission or, failing that, to secure listing on NASDAQ for the Registrable Common and, without limiting the generality of the foregoing, to arrange for at least two market makers to register as such with respect to Registrable Common with the
Financial Industry Regulatory Authority. 
 Section 2.5. Expenses. With respect to each registration requested pursuant
to Section 2.1 hereof (except as otherwise provided in such Section) and with respect to each inclusion of Registrable Common in a registration statement pursuant to Section 2.2 hereof (except as otherwise provided in such Section), the
Company shall bear all registration expenses, including the following fees, costs and expenses: all registration, filing and FINRA fees, printing  

  
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expenses, fees and disbursements of counsel and accountants for the Company, all internal Company expenses, all legal fees and disbursements and other expenses of complying with state securities
or blue sky laws of any jurisdictions in which the securities to be offered are to be registered or qualified, the reasonable fees and disbursements of one special counsel for the selling security Investors and the premiums and other costs of
policies of insurance obtained by the Company against liability (if any) arising out of such public offering. All other fees and disbursements of any accountants or advisors for the selling security Investors, underwriting discounts and commissions
and transfer taxes relating to the shares included in the offering by the selling security Investors, and any other expenses incurred by the selling security Investors not expressly included above, shall be borne by the selling security Investors.

 Section 2.6. Indemnification. In the event that any Registrable Common is included in a registration statement under
Section 2.1 or 2.2 hereof: 
 (a) Indemnification by Company. To the fullest extent permitted by law, the Company will indemnify
and hold harmless each Investor of Registrable Common which is included in a registration statement pursuant to the provisions hereof, its partners, members, directors, officers, and their respective Affiliates and any underwriter (as defined in the
Securities Act) for such Investor and each Person, if any, who controls such Investor or such underwriter within the meaning of the Securities Act, from and against, and will reimburse such Investor and each such underwriter and controlling Person
with respect to, any and all loss, damage, liability (collectively, “Losses”) to which such Investor or any such underwriter or controlling Person may become subject under the Securities Act, state securities laws or otherwise, and
the Company will pay to each such Investor, underwriter or controlling Person any legal or other costs or expenses reasonably incurred by such Person in connection with investigating or defending any such Loss, insofar as such Losses are caused by
any untrue statement or alleged untrue statement of any material fact contained in such registration statement, any prospectus contained therein or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading; provided, however, that the Company will not be liable in any
such case to the extent that any such Loss arises out of or is based upon an untrue statement or alleged untrue statement or omission or alleged omission so made in conformity with information furnished by such Investor, such underwriter or such
controlling Person in writing specifically for use in the preparation thereof, provided however, that the indemnity agreement in this Section 2.6(a) shall not apply to amounts paid in settlement of any such Loss if such settlement is effected
without the consent of the Company, which consent shall not be unreasonably withheld; provided, however, that the Company shall not, without approval of each party being indemnified pursuant to this Section 2.6(a), which approval shall not be
unreasonably withheld, consent to entry of any judgment or enter into any settlement which does not include as an unconditional term the giving by the claimant or plaintiff to the parties being so indemnified of a release from all liability with
respect to such claim or litigation; and provided further, that the foregoing indemnity obligation with respect to any preliminary prospectus shall not inure to the benefit of any Investor on account of any Loss whatsoever arising from the sale of
any Registrable Common by such Investor to any person if (A) a copy of the final prospectus (as amended or supplemented if such amendments or supplements shall have been furnished to such Investor prior to the confirmation of the sale involved)
shall not have been sent or given by or on behalf of such Investor to such 

  
 11 

 
Person, if required by law, with or prior to the written confirmation of the sale involved, and (B) the untrue statement or alleged untrue statement or omission or alleged omission of a
material fact contained in such preliminary prospectus from which such Loss arose was corrected in the final prospectus (as amended or supplemented if such amendments or supplements thereto shall have been furnished as aforesaid). 

(b) Indemnification by Investors. To the fullest extent permitted by law, each Investor of Registrable Common which is included in a
registration statement pursuant to the provisions hereof will indemnify and hold harmless the Company, its directors and officers, each Person, if any, who controls the Company within the meaning of the Securities Act, any other Investor selling
securities pursuant to such registration statement, any controlling Person of any such selling Investor, any underwriter and any controlling Person of any such underwriter (including any broker or dealer through whom such of the shares may be sold)
(each, an “Indemnitee”) from and against, and will reimburse any Indemnitee with respect to, any and all Losses to which such Indemnitee may become subject under the Securities Act, state securities laws or otherwise, and the
Company will pay to each such Investor, underwriter or controlling person any legal or other costs or expenses reasonably incurred by such person in connection with investigating or defending any such Loss, insofar as such Losses are caused by any
untrue or alleged untrue statement of any material fact contained in such registration statement, any prospectus contained therein or any amendment or supplement thereto, or arise out of or are based upon the omission or the alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, in each case to the extent, but only to the extent, that such untrue
statement or alleged untrue statement or omission or alleged omission was so made in reliance upon and in conformity with written information furnished by such Investor specifically for use in the preparation thereof, and provided, however, that the
indemnity agreement in this Section 2.6(b) shall not apply to amounts paid in settlement of any such Loss if such settlement is effected without the consent of the indemnifying Investor, which consent shall not be unreasonably withheld;
provided, however, that such indemnifying Investor shall not, without approval of each party being indemnified pursuant to this Section 2.6(b), which approval shall not be unreasonably withheld, consent to entry of any judgment or enter into
any settlement which does not include as an unconditional term the giving by the claimant or plaintiff to the parties being so indemnified of a release from all liability with respect to such claim or litigation; and provided, further that the
obligations of such Investors under this Section 2.6(b) shall be limited to the amount by which the proceeds to each such Investor of Registrable Common from such offering exceeds the amount paid (including underwriters’ discounts and
commissions, if any) by such Investor in connection with such registration. 
 (c) Indemnification Procedures. Promptly after receipt
by a party entitled to indemnification pursuant to this Section 2.6 (each, an “Indemnified Party”) of notice of the commencement of any action involving the subject matter of the foregoing indemnity provisions such Indemnified
Party will, if a claim is to be made against the party obligated to provide indemnification pursuant to this section (each, an “Indemnifying Party”), promptly notify the Indemnifying Party of the commencement thereof; but the
omission to provide such notice will not relieve the Indemnifying Party from any liability hereunder, except to the extent that the delay in giving, or failing to give, such notice has a material adverse effect upon the ability of the Indemnifying
Party to defend against the claim. In case such action is brought against an 

  
 12 

 
Indemnified Party, the Indemnifying Party shall have the right to participate in and, at the Indemnifying Party’s option, to assume the defense thereof, singly or jointly with any other
Indemnifying Party similarly notified, with counsel reasonably satisfactory to the Indemnified Party; provided, however, that if the defendants in any action include both the Indemnified Party and the Indemnifying Party and the Indemnified Party
shall have reasonably concluded based on advice of counsel that there may be legal defenses available to any Indemnified Parties that are different from or additional to those available to the Indemnifying Party, or if there is a conflict of
interest which would prevent counsel for the Indemnifying Party from also representing the Indemnified Party, the Indemnified Party shall have the right to select counsel to participate in the defense of such action on behalf of such Indemnified
Party at the expense of the Indemnifying Party; provided that the Indemnifying Party shall be responsible for the expense of only one such special counsel selected jointly by the Indemnified Parties, if there is more than one Indemnified Party.
After notice from an Indemnifying Party to any Indemnified Party of such Indemnifying Party’s election to assume the defense of the action, the Indemnifying Party will not be liable to such Indemnified Party pursuant to this Section 2.6
for any legal or other expense subsequently incurred by such Indemnified Party in connection with the defense thereof other than reasonable costs of investigation, unless (i) the Indemnified Party shall have employed counsel in accordance with
the proviso of the preceding sentence, or (ii) the Indemnifying Party shall not have employed counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party within a reasonable time after the notice of the
commencement of the action, or (iii) the Indemnifying Party has authorized the employment of counsel for the Indemnified Party at the expense of the Indemnifying Party. 

(d) Contribution. If the indemnification provided for in Section 2.6(a) or Section 2.6(b) is held by a court of competent
jurisdiction to be unavailable to an Indemnified Party (other than pursuant to its terms) with respect to any loss, liability, claim, damage, or expense referred to therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party
hereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such loss, liability, claim, damage, or expense in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the
one hand and of the Indemnified Party on the other in connection with the statements or omissions that resulted in such loss, liability, claim, damage, or expense as well as any other relevant equitable considerations; provided however, that the
total amount paid or payable by a Investor pursuant to this Section 2.6(d) shall be limited to the net amount of any proceeds received by such Investor from the sale of Registrable Common included in the applicable registration statement. The
relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material
fact relates to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’ relative intent, knowledge, access to information, and opportunity to correct or prevent such statement or omission. 

Section 2.7. Exceptions to and Termination of Registration Obligations. The Company shall not be obligated to effect a
registration if the Company delivers to the holders of the Registrable Common within 30 days of any Registration Request the notice permitted by Section 2.1(c) and so files within such period described in the notice. This Agreement, and the
registration rights set forth herein, shall terminate upon the earlier to occur of (a) the expiration of five years following the Company’s initial public offering or (b) with respect to any holder of

  
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the Registrable Common, that time following the Company’s Qualified Public Offering that such holder is able to sell all of such holder’s Registrable Common under Rule 144 promulgated
under the Securities Act during any 90-day period. 
 Section 2.8. Cooperation. Any Investor whose Registrable Common are
to be included in a registration statement either filed pursuant to a demand or as part of a Company registration agrees to cooperate with all reasonable requests by the Company necessary to effectuate the purposes of this Agreement, including by
timely providing the Company with all information necessary to file a registration statement. 
 Section 2.9.
“Market Stand-Off” Agreement. Each Investor hereby agrees that, following the effective date of the initial registration of the Company’s securities under the Securities Act, for the period of time and to the extent
reasonably requested by the underwriter(s) and the Company, such Investor shall not sell, offer to sell, contract to sell (including, without limitation, any short sale), grant any option to purchase or otherwise transfer or dispose of any
securities of the Company held by such Investor, directly or indirectly, except securities covered by the registration statement and transfers to donees who agree to be similarly bound; provided however, that (i) the executive officers and
directors of the Company, as well as each holder of at least 2% of the Company’s Common Stock (including all shares of Common Stock issuable upon conversion or exercise of convertible securities, options or warrants), shall have agreed to be
bound by substantially the same terms and conditions, (ii) the time period requested for such market stand-off shall not exceed (A) 180 days following the Company’s initial public offering or (B) 90 days following any subsequent
registration of the Company’s securities and (iii) the restriction shall not apply to a registration relating solely to employee, consultant or advisor benefit plans on Form S-1 or Form S-8 (or similar forms promulgated after the date
hereof), or a registration relating solely to a transaction pursuant to Rule 145 promulgated under the Securities Act on Form S-4 (or similar forms promulgated after the date hereof) or shares of Common Stock purchased by any Investor in an
open-market transaction in or after such registration. The Company may impose stop-transfer instructions during such stand-off period with respect to the securities of each Investor subject to this restriction
if necessary to enforce such restrictions. 
 Section 2.10. Limitations on Additional Registration Rights. From and after
the date of this Agreement, the Company shall not, without the consent of the Investors holding a majority of the Registrable Common enter into any agreement granting any holder or prospective holder of any securities of the Company registration
rights with respect to such securities except for agreements granting new registration rights which (i) are subordinate to the registration rights granted hereunder, (ii) would not reduce the number of shares of Registrable Common that the
existing Investors are entitled to include in any registration, and (iii) prohibit such holders from making a demand for registration that could result in such registration statement being declared effective prior to six months after the date
of the Company’s initial public offering or within 180 days of the effective date of any registration effected pursuant to Section 2.1. Any party that is granted subordinate registration rights pursuant to this Section 2.10 may be
made a party to this Agreement with the consent of the Investors holding a majority of the Registrable Common, voting together as a single class. 

  
 14 

 ARTICLE III. 

AFFIRMATIVE COVENANTS OF THE COMPANY 

The Company covenants and agrees with the Investors as follows: 

Section 3.1. Corporate Existence. The Company will maintain its corporate existence in good standing and comply with all
applicable laws and regulations of the United States or of any state or political subdivision thereof and of any government authority where failure to so comply would have a Material Adverse Effect (as such term is defined in the Purchase Agreement)
on the Company or its business or operations. 
 Section 3.2. Books of Account and Reserves. The Company will keep books
of record and account in which full, true and correct entries are made of all of its dealings, business and affairs, in accordance with generally accepted United States accounting principles (“GAAP”), consistently applied throughout
the periods indicated, except as disclosed therein. The Company will employ certified public accountants from a regional or national firm as (a) selected by the Board who are “independent” within the meaning of the accounting
regulations of the Commission and (b) approved by at least two of the Preferred Directors (as such term is defined in the Certificate of Incorporation), which approval shall not be withheld unreasonably (the “Accountants”). The
Company will have annual audits made by such Accountants in the course of which such Accountants shall make such examinations, in accordance with generally accepted auditing standards, as will enable them to give such reports or opinions with
respect to the financial statements of the Company as will satisfy the requirements of the Commission in effect at such time with respect to reports or opinions of accountants. 

Section 3.3. Furnishing of Financial Statements and Information. The Company will, until the closing of a Qualified Public
Offering (as defined in the Certificate of Incorporation). 
 (a) deliver the following monthly financial statements to each Investor which
alone, or in combination with an Affiliate which is also an Investor, holds at least a 5% ownership interest in the Company on a fully diluted basis (assuming full conversion and exercise of all convertible and exercisable securities into Common
Stock) (each such Investor a “Major Investor”), as soon as available, but in any event within 30 days after the close of each month: an unaudited balance sheet of the Company as of the end of such month, together with the related
statements of operations for each such month, together with the related statements of operations for each such month, and on a year to date basis (provided, however, that such statements need not comply with GAAP), which balance sheets and
statements of operations shall compare the financial information contained therein with the Company’s annual operating plan and budget for such period; 

(b) deliver the following quarterly financial statements to each Major Investor as soon as available but in any event within 45 days after the
end of each of the first three quarters of each fiscal year of the Company: an unaudited balance sheet of the Company, together with the related statements of operations and cash flow for such quarter (provided, however, that such statements need
not include footnotes, but otherwise shall comply with GAAP), which financial statements shall compare the financial information contained therein with the Company’s annual operating plan and budget for such period; 

  
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 (c) deliver the following annual financial statements to each Major Investor as soon as available
but in any event within 30 days after the end of each fiscal year: an unaudited balance sheet of the Company, as of the end of such fiscal year (provided, however, that such statements need not include footnotes, but otherwise shall comply with
GAAP), which financial statements shall compare the financial information contained therein with the Company’s annual operating plan and budget for such period; 

(d) deliver the following annual financial statements to each Major Investor as soon as available but in any event within 120 days after the
end of each fiscal year: a balance sheet of the Company, as of the end of such fiscal year, together with the related statements of operations, and cash flow for such fiscal year, all in reasonable detail and duly certified by the Accountants, who
shall have given the Company an opinion, unqualified as to the scope of the audit, regarding such statements; 
 (e)(i) at least 30 days
before the beginning of each fiscal year, ensure that management prepares and submits to the Board and each Major Investor the operating plan and budget for the upcoming year, (ii) within 30 days after the end of each month and after the end of
each fiscal quarter, ensure that management prepares and submits to the Board and such Major Investors an update on the Company’s actual performance against the plan and budget, and (iii) within 30 days after the each fiscal year, and at
such other times as the Major Investors may reasonably request, an updated capitalization table, and an updated stock options/vesting schedule; 

(f) deliver to each Major Investor, with reasonable promptness, such other financial information and projections relating to the business,
affairs and financial condition of the Company as is available to the Company and as from time to time any such Major Investor may reasonably request; and 

(g) deliver to each Major Investor within seven days after the Company learns of the commencement or written threats of the commencement of
any lawsuit, legal or equitable, or of any administrative, arbitration or other proceeding against the Company or its business, assets or properties, written notice of the nature and extent of such suit or proceeding. 

Section 3.4. Inspection. The Company will permit each Major Investor, or any other representative designated by each such
Major Investor and reasonably satisfactory to the Company, to visit and inspect, at such Major Investor’s expense, any of the properties of the Company, including its books and records (and to make photocopies thereof or make extracts
therefrom), and to discuss its affairs, finances and accounts with its officers, lawyers and accountants, all to such reasonable extent and at such reasonable times and intervals as such Major Investor may reasonably request; provided, however, that
each Major Investor’s foregoing rights are limited to exercising such rights only for purposes related to such Major Investor’s stock ownership in the Company and nothing herein will require the Company to take action or provide
information (i) that is subject to attorney-client privilege, as determined in good faith by the Board, (ii) for or to a party with which the Company is at the time engaged in a dispute or litigation, (iii) that would cause the
Company to breach a confidentiality agreement with a third party or (iv) for or to any party that the Company reasonably deems to be a competitor of the Company. Each Major Investor shall maintain, and shall require its representatives to
maintain,  

  
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all confidential information obtained from the Company on a confidential basis; provided, however, that there shall be no obligation under this Section 3.4 for information which (i) is
generally known to the public at the time of disclosure or becomes generally known through no wrongful act on the part of the Major Investor or its representative; (ii) is independently known by the Major Investor or its representative without
reference to or reliance upon the confidential information; (iii) is required to be disclosed by the Major Investor or its representative to comply with applicable laws or governmental regulations, provided that the Major Investor or its
representative provides prior written notice of such disclosure to the Company and take reasonable and lawful actions to avoid and/or minimize the extent of such disclosure. 

Section 3.5. Subsidiaries. If the Company establishes, maintains or controls, directly or indirectly, any subsidiary, it
shall cause each such subsidiary to comply with the applicable covenants set forth in this Article III. 
 Section 3.6.
ERISA. Upon the request of an Investor, the Company shall provide certain management rights to such Investor to allow for its compliance with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). 

Section 3.7. Right of First Offer. In the event that the Company proposes to issue any New Securities (as defined in
Section 3.7(e)), the Company shall first make an offering of such New Securities to each Major Investor other than the Intuitive Stockholders (collectively, for purposes of this Section 3.7, the “Holders”), pursuant to the
following provisions: 
 (a) The Company shall deliver notice (the “Initial Company Notice”) stating (i) its bona fide
intention to offer such New Securities, (ii) the number of New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New Securities, at least 30 calendar days before such offer. 

(b) By written notification received by the Company within 20 calendar days after giving the Initial Company Notice, each Holder may elect to
purchase up to its Pro Rata Share of such New Securities on the price and terms provided for in such Initial Company Notice. For purposes of this Section 3.7, “Pro Rata Share” shall be determined by multiplying the total number
of New Securities subject to this Section 3.7 by a fraction, the numerator of which shall be the total number of shares of capital stock of the Company (assuming full conversion and exercise of all convertible and exercisable securities into
Common Stock) held by such Holder; and the denominator of which shall be the total number of shares of capital stock of the Company outstanding (on a fully diluted basis assuming full conversion and exercise of all outstanding convertible and
exercisable securities). Promptly after such 20-day period, the Company shall give to all Holders exercising in full their right to purchase their respective Pro Rata Share of such New Securities a written notice (the “Final Company
Notice”) setting forth the number of such New Securities subscribed to be purchased pursuant to the exercise of such rights by all Holders and the number of such New Securities that have not been subscribed to be so purchased. If any Holder
fails to exercise its right hereunder to purchase all of its Pro Rata Share of such New Securities, the other Holders may agree to purchase all of the Holders’ unpurchased Pro Rata Share on a pro rata basis, up to and including the aggregate of
all of the Holders’ Pro Rata Share of such New Securities, within five calendar days from the Company’s giving of the Final Company Notice. 

  
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 (c) The Company may, during the 90 calendar-day period following the expiration of the
20-plus-5-day period provided in Section 3.7(b), offer the remaining unsubscribed portion of such New Securities to one or more persons or entities at a price not less than that, and upon terms no more favorable to the offeree than those,
specified in the Company Notice. No Holder that has agreed to purchase or otherwise acquire any such New Securities pursuant to the exercise of the right of first offer set forth in this Section 3.7 shall be obligated to consummate such
purchase or acquisition unless and until such New Securities available for issuance or sale to such persons or entities have actually been issued or sold in accordance with the terms set forth in the Initial Company Notice, in which event a closing
with respect to both the purchase by such Holders and such persons or entities shall occur simultaneously. If the Company does not enter into an agreement for the sale of such New Securities within such 90-day period with such persons or entities,
or if such agreement is not consummated within 30 calendar days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Holders in accordance
with this Section 3.7. 
 (d) A Holder may, at any time, transfer or assign its right of first offer to any investment fund,
partnership, limited liability company or entity managed or controlled by, or under common control with, such Holder. For purposes of clarity, for as long as Denise Barbut, M.D. remains a Major Investor, the right of first offer to Dr. Barbut
as a Holder may not be transferred or assigned to any other individual or entity, other than the Heinemann Family Trust. 
 (e) “New
Securities” shall mean any capital stock (including Common Stock and/or Preferred Stock) of the Company whether now authorized or not, and rights, convertible securities, options or warrants to purchase such capital stock, and securities of
any type whatsoever that are, or may become, exercisable or convertible into capital stock; provided the term “New Securities” shall not apply to any additional shares of capital stock (a) issuable upon conversion of the
Preferred Stock, (b) issuable upon conversion of any of the Company’s convertible securities outstanding on the date hereof (including pursuant to the Purchase Agreement) or upon the exercise of any warrants outstanding as of the date
hereof, (c) issued or issuable out of the Option Pool (as defined in Section 4.1(a)), (d) issued or issuable by way of stock split or stock dividend or similar capital modification or in connection with an adjustment to any Preferred
Stock conversion price, (e) issued in connection with any merger, acquisition or other reorganization approved by a majority of the members of the Board, which majority shall include such number of the Preferred Directors (as such term is
defined in the Certificate of Incorporation) whose designators under Section 1.1.2 of the Voting Agreement, along with each such designator’s Affiliates, hold in the aggregate a majority of the then outstanding shares of the Preferred
Stock, (f) issued pursuant to business conducted by the Company with customers or suppliers as approved by a majority of the members of the Board, which majority shall include such number of the Preferred Directors (as such term is defined in
the Certificate of Incorporation) whose designators under Section 1.1.2 of the Voting Agreement, along with each such designator’s Affiliates, hold in the aggregate a majority of the then outstanding shares of the Preferred Stock,
(g) issued to lessors or financial institutions in connection with financing transactions approved by a majority of the members of the Board, which majority shall include such number of the Preferred Directors (as such term is defined in the
Certificate of Incorporation) whose designators under Section 1.1.2 of the Voting Agreement, along with each such designator’s Affiliates, hold in the aggregate a majority of the then outstanding shares of the Preferred Stock,
(h) issued in connection with (1) an acquisition by the Company of another entity 

  
 18 

 
or (2) the merger or consolidation of the Company into another entity, in each case, pursuant to which the Company will own 50% or more of the voting power of such other entity following the
acquisition, merger or consolidation, in each case as approved by a majority of the members of the Board, which majority shall include such number of the Preferred Directors (as such term is defined in the Certificate of Incorporation) whose
designators under Section 1.1.2 of the Voting Agreement, along with each such designator’s Affiliates, hold in the aggregate a majority of the then outstanding shares of the Preferred Stock, (i) issued in connection with strategic
corporate partnering arrangements as approved by (1) a majority of the members of the Board, which majority shall include such number of the Preferred Directors (as such term is defined in the Certificate of Incorporation) whose designators
under Section 1.1.2 of the Voting Agreement, along with each such designator’s Affiliates, hold in the aggregate a majority of the then outstanding shares of the Preferred Stock and (2) in the event that the additional shares of
capital stock issued in connection with such strategic corporate partnering arrangement represent 3% or more of the outstanding capital stock of the Company, the affirmative vote or written consent of a majority of the then outstanding shares of the
Preferred Stock (voting together as a single class), (j) issued in connection with a Qualified Public Offering (as defined in the Certificate of Incorporation), (k) with respect to which the Company has obtained a written waiver of the
application of this Section 3.7 signed by the Holders of a majority of the Preferred Stock (voting together as a single class) or, (l) issued pursuant to Section 4 of the Purchase Agreement. For the purposes of such right of first
offer, the issuance by the Company of any warrant or right to purchase or subscribe to another security, or the issuance of a security which gives the holder a present or future right or privilege to convert the security into another security, shall
be deemed to include the issuance of the underlying security at the time of the issuance of the warrant or right or convertible security, but the exercise of the right to purchase or subscribe or to convert shall not be deemed an additional
“issuance” subject to such right of first offer. 
 (f) This Section 3.7 may not be waived or amended in a manner that would
adversely affect the rights of any Holder under this Section 3.7 without the written consent of such Holder (for the avoidance of doubt, the term “Holder” does not include any Intuitive Stockholder). 

(g) The parties hereto acknowledge and agree that (i) the Intuitive Stockholders have been granted preemptive rights separate from those
granted to the Holders under this Section 3.7 pursuant to the terms of that certain Settlement and Release Agreement dated November 6, 2012 among the Company and the Intuitive Stockholders (the “Intuitive Preemptive
Rights”), (ii) the Intuitive Stockholders are no longer entitled to the benefits or subject to the obligations of Section 3.7(a) through (f) of this Agreement, (iii) the Intuitive Stockholders are no longer considered
“Holders” under this Section 3.7, (iv) Section 3.7(a) through (f) of this Agreement may be amended, waived or modified at any time without the consent of any Intuitive Stockholder as long as such amendment,
waiver or modification does not restrict or inhibit the Intuitive Preemptive Rights, and (v) the rights granted to the Holders under this Section 3.7 may be exercised in parallel to the Intuitive Preemptive Rights as long as the Intuitive
Preemptive Rights are not restricted or inhibited. 
 Section 3.8. Payment of Taxes. The Company will pay all taxes
(other than taxes based upon income) and other governmental charges that may be imposed with respect to the issue or delivery of Conversion Shares, other than any tax or other charge imposed in connection with any transfer involved in the issue and
delivery of shares of Common Stock in a name other than that in which the shares of Preferred Stock so converted were registered. 

  
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 Section 3.9. Nondisclosure and Developments Agreement; Non-Compete Agreements.
The Company shall obtain, and shall cause its subsidiaries (if any are formed in the future) to obtain, a nondisclosure and inventions assignment agreement containing terms substantially similar to the form of Exhibit B attached to the Purchase
Agreement from all future officers, employees and consultants, upon commencement of their association with the Company or any of its subsidiaries. In addition, the Company shall obtain, and shall cause its subsidiaries (if any are formed in the
future) to obtain, a non-compete (except for employees in California) and non-solicitation agreement from all future employees upon commencement of their association with the Company or any of its subsidiaries. 

Section 3.10. Reports Under Securities Exchange Act of 1934. With a view to making available to the Major Investors the
benefits of Rule 144 promulgated under the Securities Act and any other rule or regulation of the Commission that may at any time permit a Major Investor to sell securities of the Company to the public without registration or pursuant to a
registration on Form S-3, the Company agrees to: 
 (a) make and keep public information available, as those terms are understood and defined
in Commission Rule 144, at all times after 90 days after the effective date of the first registration statement filed by the Company for the offering of its securities to the general public; 

(b) take such action (including the voluntary registration of its Common Stock under Section 12 of the Exchange Act) as is necessary to
enable the Major Investors to utilize Form S-3 for the sale of their Registrable Common, such action to be taken as soon as practicable after the end of the fiscal year in which the first registration statement filed by the Company for the offering
of its securities to the general public is declared effective; 
 (c) file with the Commission in a timely manner all reports and other
documents required of the Company under the Securities Act and the 1934 Act; and 
 (d) furnish to any Major Investor, so long as the Major
Investor owns any Registrable Common, forthwith upon request (i) a written statement by the Company that it has complied with the reporting requirements of Commission Rule 144 (at any time after 90 days after the effective date of the first
registration statement filed by the Company), the Securities Act and the 1934 Act (at any time after it has become subject to such reporting requirements), or that it qualifies as a registrant whose securities may be resold pursuant to Form S-3 (at
any time after it so qualifies), (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested in
availing any Major Investor of any rule or regulation of the Commission which permits the selling of any such securities without registration or pursuant to such form. 

Section 3.11. Qualified Small Business Stock. For as long as any Investor holds Preferred Stock or Conversion Shares, the
Company shall use its best efforts to cause the Preferred Stock or Conversion Shares to qualify as “qualified small business stock” for purposes of Section 1202 of the Code (including, without limitation, by submitting any reports
required under Section 1202(d)(1)(C) of the Code). 

  
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 Section 3.12. Insurance. The Company shall procure and maintain (a) an
officers’ and directors’ liability insurance policy in an amount equal to at least $5 million and (b) a product liability insurance policy in an amount equal to at least $3 million, in each case on such terms and conditions as
determined by the Board. 
 Section 3.13. Stock Vesting. Unless otherwise approved by the Board or the Compensation
Committee if the Board designates it such authority, all stock options and other stock equivalents issued after the date of this Agreement to employees, directors, consultants and other service providers shall be subject to vesting as follows:
(a) 25% of such stock shall vest at the end of the first year following such person’s services commencement date with the Company, and (b) 75% of such stock shall vest over the remaining 36 months in monthly installments. 

ARTICLE IV. 
 NEGATIVE
COVENANTS OF THE COMPANY 
 The Company covenants and agrees with the Investors that it will be limited and restricted as follows: 

Section 4.1. General Restrictions. Without prior approval of the Board, the Company will not hereafter: 

(a) issue any shares of its capital stock or grant any options, warrants or other conversion rights to any person other than pursuant to
employee, director, consultant or advisor stock plans or agreements providing for the granting or potential issuance of not more than 5,161,550 shares of Common Stock (subject to appropriate adjustment to reflect stock splits, stock dividends,
reorganizations and other capitalization changes) or such higher amount approved by the Board and the holders of a majority of the Preferred Stock (the “Option Pool”); 

(b) repurchase any capital stock of the Company (except for isolated repurchases from employees approved in advance by a majority of the
Board); 
 (c) make, or permit any Affiliate of the Company to make, any loan or advances to any person, including, without limitation, to
any officer, director or stockholder of the Company (excluding loans and advances to employees or suppliers in the ordinary course of business which shall include loans to existing employees or prospective employees in connection with relocation
expenses), except to a wholly-owned subsidiary; 
 (d) guarantee, endorse, or otherwise become contingently liable for the obligations or
the debts of any other person or entity, except in the ordinary course of business; 
 (e) mortgage or pledge, or create a security interest
in all or substantially all of the properties or assets of the Company, except for the security interest currently granted by the Company in favor of Solon; 

  
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 (f) enter into or be a party to any transaction with any director, officer, or employee of the
Company or an immediate family member thereof, except for transactions contemplated by this Agreement, the Purchase Agreement or compensatory arrangements not involving an employment agreement in the ordinary course of business; or 

(g) change the fundamental line of business or enter into a new line of business not currently conducted by the Company. 

Section 4.2. Additional Restrictions. The Company shall not, without the affirmative vote or written consent of at least a
majority of the members of the Board, which majority shall include such number of the Preferred Directors (as such term is defined in the Certificate of Incorporation) whose designators under Section 1.1.2 of the Voting Agreement, along with
each such designator’s Affiliates, hold in the aggregate a majority of the then outstanding shares of the Preferred Stock: 
 (a) issue
any debt or equity securities of the Company; 
 (b) make any material modifications or amendments to the Company’s strategy or
business plan; 
 (c) enter into any business arrangement with a third party that is reasonably expected to result in a liability to the
Company in an amount greater than $500,000; 
 (d) make any changes to the patent strategy of the Company as of the date hereof; 

(e) approve any Company annual budget; or 

(f) borrow or lend money to a third party, other than in the ordinary course of business and consistent with past practice. 

ARTICLE V. 
 TERMINATION
OF COVENANTS 
 Except for the obligations of the Company under Section 3.10 of this Agreement, the obligations of the Company
under Articles III and IV of this Agreement, notwithstanding any provisions hereof to the contrary, shall terminate and shall be of no further force or effect on the closing date of a Qualified Public Offering, an Acquisition or an Asset
Transfer (as such terms are defined in the Certificate of Incorporation). 
 ARTICLE VI. 

MISCELLANEOUS 

Section 6.1. Waivers, Amendments and Approvals. In each case in which the approval of the Investors is required by the
terms of this Agreement, such requirement shall be satisfied by a vote or the written action of Investors holding a majority of the Registrable Common, unless a different percentage is specifically required by the terms of this Agreement. Except as
otherwise provided in Section 3.7(f), any term or provision of this Agreement requiring performance by or binding upon the Company or the Investors may be amended, and 

  
 22 

 
the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only by a writing signed by the Company and
the Investors holding a majority of the Registrable Common. Any amendment or waiver effected in accordance with this Section shall be binding upon the Investors (including permitted assigns pursuant to Section 6.10 hereof). The waiver by a
party of any breach hereof or default in payment of any amount due hereunder or default in the performance hereof shall not be deemed to constitute a waiver of any other default or succeeding breach or default. Written notice of any such waiver,
consent or agreement of amendment, modification or supplement shall be given to the record Investors holding Registrable Common who did not give written consent thereto. Notwithstanding the foregoing, any party to this Agreement may waive any of its
rights hereunder without the consent of any other party. 
 Section 6.2. Written Changes, Waivers, Etc. Neither this
Agreement nor any provision hereof may be changed, waived, discharged or terminated orally, but only by a statement in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought, except to the
extent provided in Section 6.1. 
 Section 6.3. Notices. All notices, requests, consents and other communications
required or permitted hereunder shall be in writing and shall be personally delivered, or sent by facsimile transmission, or mailed first-class postage prepaid, registered or certified mail, or dispatched by recognized delivery service, as follows:

 (a) to a Investor, addressed to such Investor at the address(es) set forth on the Schedules; 

with a copy (which shall not constitute notice to the Investors) to: 

Wilson Sonsini Goodrich & Rosati, P.C. 

650 Page Mill Road 

Palo Alto, CA 94304-1050 

Attn: Philip H. Oettinger 

Tel: 650-565-3564 

Fax: 650-493-6811 

(b) to the Company, to: 

BeneChill, Inc. 

10060 Carroll Canyon Road 

Suite 100 

San Diego CA 92131 

Attn: Chief Executive Officer 

Tel: 858-695-8161 

Fax: 858-695-8163 

  
 23 

 with a copy (which shall not constitute notice to the Company) to: 

Oppenheimer Wolff & Donnelly LLP 

222 South Ninth Street 

Minneapolis, MN 55402-3338 

Attn: Thomas A. Letscher 

Tel: 612-607-7443 

Fax: 612-607-7100 
 and such
notices and other communications shall for all purposes of this Agreement be treated as being effective or having been given if delivered personally, or, if sent by mail delivery service or facsimile, when received. Any party may change its address
for such communications by giving notice thereof to the other parties in conformity with this Section. 
 Section 6.4. Survival
of Representations, Warranties, Agreements, Etc. All representations, warranties, covenants and agreements contained herein or in any certificate, document or instrument delivered pursuant to this Agreement (other than any legal opinion)
shall survive the execution and delivery of this Agreement or such certificate, document or instrument, as the case may be. 

Section 6.5. Delays or Omissions. Except as expressly provided herein, no delay or omission to exercise any right, power or
remedy accruing to any party under this Agreement shall impair any such right, power or remedy of such party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence thereto, or of a similar breach or default
thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any
party hereto of any breach or default under the Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.

 Section 6.6. Other Remedies. Any and all remedies herein expressly conferred upon a party shall be deemed cumulative
with, and not exclusive of, any other remedy conferred hereby or by law on such party, and the exercise of any one remedy shall not preclude the exercise of any other. 

Section 6.7. Attorneys’ Fees. Should suit be brought to enforce or interpret any part of this Agreement, the
prevailing party shall be entitled to recover, as an element of the costs of suit and not as damages, reasonable attorneys’ fees to be fixed by the court (including, without limitation, costs, expenses and fees on any appeal). The prevailing
party shall be the party entitled to recover its costs of suit, regardless of whether such suit proceeds to final judgment. A party not entitled to recover its costs shall not be entitled to recover attorneys’ fees. No sum for attorneys’
fees shall be counted in calculating the amount of a judgment for purposes of determining if a party is entitled to recover costs or attorneys’ fees. 

Section 6.8. Entire Agreement. This Agreement, the schedules hereto, the documents referenced herein and the exhibits
thereto, constitute the entire understanding and agreement of 

  
 24 

 
the parties hereto with respect to the subject matter hereof and thereof and supersede all prior and contemporaneous agreements or understandings, inducements or conditions, express or implied,
written or oral, between the parties with respect hereto and thereto, including without limitation, the term sheet dated November 21, 2012. This Agreement amends, restates and replaces in its entirety the Prior Agreement. The express terms
hereof control and supersede any course of performance or usage of the trade inconsistent with any of the terms hereof. 

Section 6.9. Severability. Should any one or more of the provisions of this Agreement or of any agreement entered into
pursuant to this Agreement be determined to be illegal or unenforceable, all other provisions of this Agreement and of each other agreement entered into pursuant to this Agreement, shall be given effect separately from the provision or provisions
determined to be illegal or unenforceable and shall not be affected thereby. The parties further agree to replace such void or unenforceable provision of this Agreement with a valid and enforceable provision that will achieve, to the extent
possible, the economic, business and other purposes of the void or unenforceable provision. 
 Section 6.10. Successors and
Assigns. The terms and conditions of this Agreement shall inure to the benefit of and be binding upon and be enforceable by the successors and permitted assigns of the parties hereto, including the holder or holders from time to time of any
of the Preferred Stock or the Conversion Shares. For purposes of this section, “permitted assign” shall mean: (i) a transferee or assignee of all a Investor’s shares of Registrable Common, (ii) another Investor of
Registrable Common which already possesses registration rights from the Company, (iii) a transferee or assignee acquiring at least 10% of the Company’s securities outstanding at the time of such transfer or assignment, or (iv) an
Affiliate. 
 Section 6.11. Governing Law. This Agreement shall be governed by and construed under the laws of the State
of Delaware. 
 Section 6.12. Counterparts; Facsimiles. This Agreement may be executed in two or more counterparts, each
of which will be deemed an original but all of which, when taken together, shall constitute one and the same instrument. Facsimile execution and delivery of this Agreement shall be legal, valid and binding execution and delivery for all purposes.

 Section 6.13. Aggregation of Stock. All shares of Preferred Stock and/or Registrable Common held or acquired by
entities or persons controlled by, or under common control with, a Investor shall be aggregated together for purposes of determining the availability of rights under this Agreement. 

Section 6.14. Additional Investors. Persons or entities that, after the date hereof, purchase shares of Series E Preferred
pursuant to the Purchase Agreement and become “Additional Investors” thereunder may, with the prior written approval of the Company (but without the need for approval by any other party to this Agreement), become parties to this Agreement
by executing and delivering a counterpart signature page hereto, whereupon they shall be deemed “Series E Investors” and “Investors” for all purposes of this Agreement. 

[signature pages follow] 

  
 25 

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

							
	COMPANY:	 		 	BENECHILL, INC.
				
		 		 	By:	 	/s/ Fred Colen
		 		 	Name: Fred Colen
		 		 	Title: President and Chief Executive Officer

  

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

 INVESTORS: 
  

			
	By:	 	 
	Name: Denise Barbut, M.D.
	 70 East 77th Street

Apartment 9C
 New York, NY 10021

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

							
	INVESTORS:	 		 	INTUITIVE BENECHILL, LLC
				
		 		 	By:	 	 
		 		 	Name:                              
                                         
                                         
  
		 		 	Title:                                   
                                         
                                        

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

							
	INVESTORS:	 		 	BRIAN ELIOT PEIERLS
				
		 		 	By:	 	 
		 		 	Name:    Brian Eliot Peierls
		 		 	Title:      Individual
			
		 		 	E. JEFFREY PEIERLS
				
		 		 	By:	 	 
		 		 	Name:    E. Jeffrey Peierls
		 		 	Title:      Individual
			
		 		 	 INVESTOR: (each of the following a “Holder”):

 
 PEIERLS SEVERAL ENTITIES

 
 U.D. E.F Peierls for Brian E. Peierls

 
 U.D. E.F. Peierls for E. Jeffrey Peierls

 
 U.D. J.N. Peierls for Brian Eliot Peierls

 
 U.D. J.N. Peierls for E. Jeffrey Peierls

 
 U. D. E.S. Peierls for E. F. Peierls et al

 
 UW E.S. Peierls for Brian E. Peierls Accumulation

 
 UW E.S. Peierls for E. Jeffrey Peierls Accumulation

 
 UW JN Peierls for Brian E. Peierls

 
 UW JN Peierls for E. Jeffrey Peierls

 
 The Peierls Foundation, Inc. (Non-Profit)

 
 U.D. Ethel F. Peierls Charitable Lead Trust

				
		 		 	By:	 	 
		 		 	        E. Jeffrey Peierls
		 		 	Title: as trustee or authorized officer on behalf of each of the foregoing Holders

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

 INVESTORS: 
  

			
	 HealthCap V L.P.
 By: HealthCap V GP
SA, its General Partner

		
	By:	 	/s/ Peder Fredriksen
	Name:	 	Peder Fredriksen
	Title:	 	President
	
	OFP V Advisor AB, Reg. No. 556701-1118, Strandvägen 5B, 114 51 Stockholm, Sweden, on behalf of itself and of other members, if any, of the OFCO Club V
		
	By:	 	/s/ Staltzon Lindstrand     /s/ Anki Forsberg
	Name:	 	Staltzon Lindstrand, Anki Forsberg
	Title:	 	Partner                      Partner

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

 INVESTORS: 
  

			
	 MEDVENTURE ASSOCIATES V, L.P.
  

By:    MedVenture Associates Management V Co., L.L.C., its general partner

		
	By:	 	/s/ Annette Campbell-White
	Name: Annette Campbell-White
	Title: Authorized Signatory
	
	 MEDVEN AFFILIATES V, L.P.
  

By:    MedVenture Associates Management V Co., L.L.C., its general partner

		
	By:	 	/s/ Annette Campbell-White
	Name:	 	Annette Campbell-White
	Title:	 	Authorized Signatory

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

 INVESTORS: 
  

	
	/s/ Michael Berman
	MICHAEL BERMAN

  

			
	MICHAEL BERMAN REVOCABLE TRUST DATED SEPTEMBER 30, 2002
	
	/s/ Michael Berman
	 By:
	 	
	 Its:
	 	

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

 INVESTORS: 
  

			
	NGN BIOMED OPPORTUNITY I, L.P.
		
	By:	 	 NGN BioMed I GP, L.P.
 General
Partner

	By:	 	 NGN Capital LLC
 General
Partner

		
	By:	 	/s/ Kenneth S. Abramowitz
		 	Kenneth S. Abramowitz
	
	NGN BIOMED OPPORTUNITY I GMBH & CO. BETEILIGUNGS KG
		
	By:	 	 NGN Capital LLC
 Managing Limited
Partner

		
	By:	 	/s/ Kenneth S. Abramowitz
		 	Kenneth S. Abramowitz

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

 INVESTORS: 
  

			
	RÜTLI FOUNDATION SOLON MEDICAL
		
	By:	 	/s/ Claudia Ineichen /s/ Karl Reichmuth
	Name:	 	Claudia Ineichen      Karl Reichmuth
	Title:	 	Director                    Director

  

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

 INVESTORS: 
  

	
	/s/ Alexander Marchessini
	ALEXANDER MARCHESSINI

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

 INVESTORS: 
  

	
	/s/ Fred Colen
	FRED COLEN

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

 INVESTORS: 
  

			
	PHYSIO CONTROL, INC.
		
	By:	 	/s/ Brian D. Webster
	Name:	 	Brian D. Webster
	Title:	 	President

  
 [Signature Page to
Third Amended and Restated Investors Rights Agreement] 

 INVESTORS: 
  

			
	NGN BIOMED OPPORTUNITY ANNEX FUND, L.P.
		
	By:	 	 NGN BioMed I Annex GP, L.P.
 General
Partner

		
	By:	 	/s/ John Constantino
		 	 John Constantino
 Managing General
Partner

 INVESTORS: 
  

	
	/s/ Paul Bernstein
	PAUL BERNSTEIN

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