Document:

exv10w29

 

    Exhibit 10.29

 

    CONSOLIDATED
    EBITDA

 

    Earnings before interest, taxes, depreciation and amortization,
    non-cash stock compensation and payments, non-cash charges that
    do not result in future cash obligations, any extraordinary or
    non recurring gains (losses) and any non-cash transactions
    (Consolidated EBITDA) is not intended to present a measure of
    performance in accordance with accounting principles generally
    accepted in the United States (GAAP). Nor should Consolidated
    EBITDA be considered as an alternative to statements of cash
    flows as a measure of liquidity. Consolidated EBITDA is included
    herein as means to measure operating performance that financial
    analysts, lenders, investors and other interested parties find
    to be a useful tool for analyzing companies.

 

    The definition of Consolidated EBITDA is defined in the senior
    secured convertible notes as a measurement for meeting the notes
    covenant requirements. For the three months ended
    September 30, 2007, the Consolidated EBITDA was required to
    be no less than a negative $3,500 in order for the Company to be
    compliant with covenant requirements of the notes. The Company
    was in compliance with the required covenant at
    September 30, 2007.

 

    The following table reconciles our consolidated net earnings per
    GAAP to Consolidated EBITDA:

 

	 	 	 	 	 
	
 
	
 
	
    Three Months

    
	
 

	
 
	
 
	
    Ended

    
	
 

	
 
	
 
	
    September 31,

    
	
 

	
 
	
 
	
    2007
	
 

	 

	

    Consolidated Net Income

	
 
	
    $
	
    22,283
	
 

	

    Any extraordinary or non recurring gains or losses

	
 
	
 
	
 
	
 

	

    Gain from disposed operations, net of tax

	
 
	
 
	
    (29,774
	
    )

	

    Non recurring (income) loss from the discontinued operations

	
 
	
 
	
    (220
	
    )

	

    Write-down of Goodwill

	
 
	
 
	
    1,395
	
 

	

    Non-cash charges that do not result in future cash obligations

	
 
	
 
	
 
	
 

	

    Gain from fair value of notes and warrants

	
 
	
 
	
    (1,080
	
    )

	

    Gain on Sale of Fixed Assets

	
 
	
 
	
    (6
	
    )

	

    Non-cash expenses associated with stock compensation expense

	
 
	
 
	
    225
	
 

	

    Tax refunds, use of net operating losses to offset taxes or
    other net tax benefits

	
 
	
 
	
    (10
	
    )

	

    Other non-cash charges that do not result in future cash
    obligations

	
 
	
 
	
    —
	
 

	
 
	
 
	
 
	
 
	
 

	

    Adjusted Net Loss before

	
 
	
    $
	
    (7,187
	
    )

	

    Interest Income

	
 
	
 
	
    (112
	
    )

	

    Interest Expense

	
 
	
 
	
    1,778
	
 

	

    Income tax expense

	
 
	
 
	
    333
	
 

	

    Depreciation Expense

	
 
	
 
	
    1,549
	
 

	

    Amortization Expense

	
 
	
 
	
    303
	
 

	

    Any non-cash transcations

	
 
	
 
	
 
	
 

	

    Foreign currency losses

	
 
	
 
	
    81
	
 

	

    Adjustments related to Inventory

	
 
	
 
	
    225
	
 

	

    Bad Debt Expense

	
 
	
 
	
    165
	
 

	

    Hedge or non-hedge derivative adjustments

	
 
	
 
	
    —
	
 

	
 
	
 
	
 
	
 
	
 

	

    Consolidated EBITDA

	
 
	
    $
	
    (2,865
	
    )

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	

    Other Financial Disclosure Required based on terms of
    notes:

	
 
	
 
	
 
	
 

	

    Consolidated Net Interest

	
 
	
    $
	
    1,666
	
 

	
 
	
 
	
 
	
 
	
 

	

    Consolidated Net Debt (Total Debt less Cash and Cash
    Equivalents) at September 30, 2007

	
 
	
    $
	
    11,876exv10w3

 

Exhibit 10.3

XO COMMUNICATIONS, LLC

WAIVER

WITH RESPECT TO

AMENDED AND RESTATED CREDIT AND GUARANTY AGREEMENT

     This Waiver (“Waiver”), dated as of November 5, 2007, with respect to the Amended and
Restated Credit and Guaranty Agreement, dated January 16, 2003 (as amended, supplemented or
otherwise modified, through the date hereof, and as it may be further amended, supplemented or
otherwise modified, the “Credit Agreement”), by and among XO Communications, LLC, a
Delaware limited liability company (the “Company,” as successor by merger to XO
Communications, Inc., a Delaware corporation), certain affiliates and subsidiaries of the Company,
as Guarantors, the Lenders party thereto from time to time and Mizuho Corporate Bank, Ltd., as
administrative agent (the “Administrative Agent”).

RECITALS

     A. Capitalized terms used herein without definition shall have the same meanings herein as set
forth in the Credit Agreement.

     B. Pursuant to Section 10.5 of the Credit Agreement, the Requisite Lenders have the right to
waive any provision of the Credit Documents or consent to any departure of any Credit Party
therefrom or may take any action contemplated in the Credit Documents and such waiver shall be
effective upon the written concurrence of the Requisite Lenders.

     C. The Lenders executing this Waiver constitute the Requisite Lenders pursuant to Section 1.1
of the Credit Agreement.

     D. The Company anticipates that it will not be in compliance with Section 6.6(b) of the Credit
Agreement for the fiscal quarter ended September 30, 2008.

     E. The Requisite Lenders desire to waive compliance by the Company with the requirements of
Section 6.6(b) of the Credit Agreement on the terms and for the periods set forth herein.

     NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreement herein
contained, the parties hereto hereby agree as follows:

 

 

WAIVER

     1. Effective as of the date of this Waiver, the Requisite Lenders hereby waive compliance by
the Company and the Guarantors with the requirements of Section 6.6(b) of the Credit Agreement for
the fiscal quarter ended September 30, 2008.

     3. Except as expressly provided herein, (a) the execution, delivery and performance of this
Waiver shall not constitute a waiver of any provision of , or operate as a waiver of any right,
power or remedy of the Administrative Agent or any Lender under the Credit Agreement or any other Credit Document and (b) the Credit Agreement and the other Credit Documents shall remain
in full force and effect and are hereby ratified and confirmed.

     3. This Waiver and the rights and obligations of the parties hereunder shall be governed by,
and shall be construed and enforced in accordance with, the internal laws of the State of New York,
without regard to conflicts of laws principles.

     4. This Waiver may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed and delivered shall be deemed an original,
but all such counterparts together shall constitute but one and the same instrument; signature
pages may be detached from multiple separate counterparts and attached to a single counterpart so
that all signature pages are physically attached to the same document.

[remainder of page intentionally left blank]

 

 

     IN WITNESS WHEREOF, the Requisite Lender has caused this Waiver to be duly executed and
delivered by its respective officers thereunto duly authorized as of the date first written above.

	 	 	 	 	 
	 	LENDER:

ARNOS CORP.

 	 
	 	By:  	/s/ Edward Mattner
 	 
	 	 	Name:  	Edward Mattner 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	Agreed and Acknowledged:

XO COMMUNICAITONS, LLC

 	 
	 	By:  	/s/ Gregory W. Freiberg
 	 
	 	 	Name:  	Gregory W. Freiberg 	 
	 	 	Title:  	CFO 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	GUARANTORS:

XO HOLDINGS, INC.

NEXTLINK WIRELESS, INC.

COAST TO COAST TELECOMMUNICATIONS, INC.

LHP EQUIPMENT, INC.

TELECOMMUNICATIONS OF NEVADA, LLC

V&K HOLDINGS, INC.

XO ASIA LIMITED

XO COMMUNICATIONS SERVICES, INC.

XO DATA SERVICES, LLC

XO GLOBAL COMMUNICAITONS, INC.

XO INTERACTIVE, INC.

XO INTERCITY HOLDINGS NO.1, LLC

XO INTERCITY HOLDINGS NO. 2, LLC

XO INTERNATIONAL HOLDINGS, INC.

XO INTERNATIONAL, INC.

XO LONG DISTANCE SERVICES (VIRGINIA), LLC

XO MANAGEMENT SERVICES, INC.

XO MANAGEMENT SERVICES, NEVADA, INC.

XO MINDSHARE, LLC

XO NEVADA MERGER SUB, INC.

XO SERVICES, INC.

XO VIRGINIA, LLC

 	 
	 	 	 
	 	 	 
	 	 	 
	 
	 	 	 
	 	By:  	     /s/ Gregory W. Freiburg
 	 
	 	 	Name:  	Gregory W. Freiburg 	 
	 	 	Title:  	CFOexv10w2

 

Exhibit
10.2

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

7600 Wisconsin Avenue, 11th Floor

Bethesda, Maryland 20814

	 	 	 	 	 
	 	Dated as of: September 30, 2007

 	 

KeyBank National Association,

as Administrative Agent

127 Public Square

Cleveland, OH 44114

Attention: John C. Scott

			
	Re:	 	Amendment No. 1 to Secured Term Loan Agreement

Ladies and Gentlemen:

     We refer to the Secured Term Loan Agreement dated as of August 7, 2007 (as amended and in
effect from time to time, the “Credit Agreement”), by and among FIRST POTOMAC REALTY
INVESTMENT LIMITED PARTNERSHIP, a Delaware limited partnership (the “Borrower”), KEYBANK
NATIONAL ASSOCIATION and the other lending institutions which are parties thereto (individually, a
“Lender” and collectively, the “Lenders”), and KEYBANK NATIONAL ASSOCIATION, as
administrative agent for itself and each other Lender (the “Agent”). Capitalized terms
used in this letter of agreement (this “Amendment”) which are not defined herein, but which
are defined in the Credit Agreement, shall have the same meanings herein as therein, as the context
so requires.

     We have requested the Lenders to make certain amendments to the Credit Agreement, and you have
advised us that the Lenders are prepared and would be pleased to make the amendments so requested
by us on the condition that we join in this Amendment.

     Accordingly, in consideration of these premises, the promises, mutual covenants and agreements
contained in this Amendment, and fully intending to be legally bound by this Amendment, we hereby
agree as follows:

 

 

ARTICLE I

AMENDMENTS TO CREDIT AGREEMENT

     Effective as of September 30, 2007, and subject to the fulfillment of the conditions contained
in Article III of this Amendment, the Credit Agreement is amended in each of the following
respects:

     (a) The term “Loan Documents” shall, wherever used in the Credit Agreement or any of the other
Loan Documents, be deemed to also mean and include this Amendment.

     (b) Section 10.5 of the Credit Agreement is amended to read in its entirety as follows:

     §10.5. Borrowing Base Pool Leverage. As at the end of (i) the fiscal quarter ending
September 30, 2007, the Borrower shall not permit Consolidated Borrowing Base Indebtedness to
exceed 76% the aggregate Value of Eligible Borrowing Base Properties and (ii) any fiscal quarter
ending on or after December 31, 2007 or any other date of measurement, the Borrower shall not
permit Consolidated Borrowing Base Indebtedness to exceed 70% the aggregate Value of Eligible
Borrowing Base Properties.

     (c) Section 10.6 of the Credit Agreement is amended to read in its entirety as follows:

     §10.6. Borrowing Base Pool Debt Service Coverage Ratio. As of the end of (i) the
fiscal quarter ending September 30, 2007, the ratio of (i) Adjusted Net Operating Income for the
applicable quarter, annualized; divided by (ii) Implied Debt Service for the
applicable period shall not be less than 1.28 to 1.0 and (ii) any fiscal quarter ending on or after
December 31, 2007, the ratio of (i) Adjusted Net Operating Income for the applicable quarter,
annualized; divided by (ii) Implied Debt Service for the applicable period shall
not be less than 1.40 to 1.0.

ARTICLE II

COVENANT

     The Borrower agrees, in consideration of the agreements set forth in this Amendment, that on
or before November 30, 2007, it will provide additional Eligible Borrowing Base Properties to the
Borrowing Base Pool in accordance with the terms of the Credit Agreement in an amount sufficient
(i) so that the Consolidated Borrowing Base Indebtedness does not exceed 70% of the aggregate Value of Eligible Borrowing Base Properties
and (ii) to permit the ratio of (i) Adjusted Net Operating Income for the applicable quarter,
annualized; divided by (ii) Implied Debt Service for the applicable period to equal
or exceed 1.40 to 1.0, with such calculations to be made on a pro forma basis using the Borrower’s
September 30, 2007 results, after giving effect to the addition of such Eligible Borrowing Base
Properties.

2

 

ARTICLE III

CONDITIONS PRECEDENT TO AMENDMENT

     The Lenders’ agreement herein to amend the Credit Agreement as of the Amendment Date is
subject to the fulfillment to the satisfaction of the Lenders of the following conditions precedent
on or prior to such date:

     (a) The Borrower shall have executed and delivered to the Agent a counterpart of this
Amendment, which shall be in form and substance satisfactory to the Lenders;

     (b) The Guarantor shall have acknowledged and consented to the provisions of this Amendment;
and

     (c) The Agent and the Majority Lenders shall have executed this Amendment.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

     The Borrower and the Guarantor hereby represent and warrant to you as follows:

     (a) Representations and Warranties. Each of the representations and warranties made
by the Borrower and the Guarantor, as applicable, to the Agent and the Lenders in the Credit
Agreement and other Loan Documents, as applicable, was true, correct and complete when made and is
true, correct and complete on and as of the date hereof with the same full force and effect as if
each of such representations and warranties had been made by the Borrower and the Guarantor on the
date hereof and in this Amendment, except to the extent that such representations and warranties
relate solely to a prior date.

     (b) No Defaults or Events of Default. No Default or Event of Default exists on the
date hereof, after giving effect to this Amendment, and no condition exists on the date hereof
which would, with notice or the lapse of time, or both, constitute a Default or an Event of Default
under the Credit Agreement.

     (c) Binding Effect of Documents. This Amendment has been duly authorized, executed
and delivered to you by the Borrower and the Guarantor and is in full force and effect as of the
date hereof, and the agreements and obligations of the Borrower and the Guarantor contained herein
and therein constitute the legal, valid and binding obligations of the Borrower and Guarantor
enforceable against the Borrower and Guarantor in accordance with their respective terms.

3

 

ARTICLE V

MISCELLANEOUS

     This Amendment may be executed in any number of counterparts, each of which when executed and
delivered shall be deemed an original, but all of which together shall constitute one instrument.
In making proof of this Amendment, it shall not be necessary to produce or account for more than
one counterpart thereof signed by each of the parties hereto. Except to the extent specifically
amended and supplemented hereby, all of the terms, conditions and the provisions of the Credit
Agreement and each of the other Loan Documents shall otherwise remain unmodified, and the Credit
Agreement and each of the other Loan Documents, as amended and supplemented by this Amendment, are
confirmed as being in full force and effect, and the Borrower and the Guarantor hereby ratify and
confirm all of its agreements and obligations contained therein, as applicable.

4

 

     If you are in agreement with the foregoing, please sign the form of acceptance on the enclosed
counterpart of this Amendment, whereupon this Amendment, as so accepted by you, shall become a
binding agreement between you and the undersigned.

	 	 	 	 	 
	 	Very truly yours,

FIRST POTOMAC REALTY INVESTMENT LIMITED PARTNERSHIP

 	 
	 	By:  	First Potomac Realty Trust,

its sole general partner
 	 
	 
	 	 	 
	 	By:  	
 s Barry H. Bass
 	 
	 	 	Barry H. Bass, Chief Financial  	 
	 	 	Officer and Executive Vice President 	 
	 

(Signatures continued on next page)

5

 

[Consent to Amendment No. 1 to Secured Term Loan Agreement]

CONSENT OF GUARANTOR

     FIRST POTOMAC REALTY TRUST (the “Guarantor”) has guaranteed the Obligations (as
defined in the Guaranty by the Guarantor in favor of the Lenders and the Agent, dated as of August
7, 2007 (the “Guaranty”). By executing this consent, the Guarantor hereby absolutely and
unconditionally reaffirms to the Agent and the Lenders that the Guarantor’s Guaranty remains in
full force and effect. In addition, the Guarantor hereby acknowledges and agrees to the terms and
conditions of this Amendment and the Credit Agreement as amended hereby (including, without
limitation, the making of the representations and warranties and the performance of the covenants
applicable to it herein or therein).

	 	 	 	 	 
	 	GUARANTOR:

FIRST POTOMAC REALTY TRUST

 	 
	 	By:  	s Barry Bass
 	 
	 	 	Barry Bass, Executive Vice President and 	 
	 	 	Chief Financial Officer 	 

6

 

	 	 	 	 	 

ACCEPTED AND AGREED AS OF

THE 30th DAY OF SEPTEMBER, 2007:

	 	 	 	 	 
	 	KEYBANK NATIONAL ASSOCIATION,

Individually and as Administrative Agent

 	 
	 	By:  	/s/
John Scott
 	 
	 	 	Name:  	John Scott	 
	 	 	Title:  	Vice President	 
	 
	 	PNC BANK, NATIONAL ASSOCIATION,

Individually

 	 
	 	By:  	/s/
Timothy P. Gleeson
 	 
	 	 	Name:  	Timothy P. Gleeson	 
	 	 	Title:  	Vice President	 
	 

7

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