Document:

c60096_ex10-3.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.3

SEPARATION AGREEMENT

     This SEPARATION AGREEMENT, dated as of May 6, 2010 (this “Agreement”), is between Wave2Wave Communications, Inc., a Delaware
corporation with a principal place of business at Continental Plaza, 6th Floor, 433 Hackensack Avenue, Hackensack, New Jersey 07601 (the “Company”), and Andrew Bressman, an individual having an address at 14 Hoverman Road, Old Tappan, New Jersey 07675 (the “Employee”).

     WHEREAS, Employee entered into an employment agreement for a five year term, dated as of June 12, 2009, as amended by a First Amendment to Employment Agreement, dated as of November 20, 2009 (as so
amended, the “Employment Agreement”), which states the terms and conditions of his employment with the Company as a senior executive and assistant to the Chairman of the
Company;

     WHEREAS, the parties entered into a certain Stock Option Agreement, dated November 20,
2009 (the “Stock Option Agreement”); 

     WHEREAS, the Employment Agreement provides that Employee may only be terminated pursuant to Section 3.2 thereof; 

     WHEREAS, the Company desires to terminate Employee’s employment for reasons not encompassed within Section 3.2 of the Employment Agreement;

     WHEREAS, the Company and Employee have agreed that Employee would cease to be an
employee of the Company prior to the effectiveness of the Company’s initial
public offering;

     WHEREAS, the Company and Employee agree to extend the “Restricted Period” (as that term is defined in the Employment Agreement); and 

     WHEREAS, the Company and Employee wish to settle, fully and finally, any and all differences between them, including but not limited to, all claims related to the Employment Agreement, Employee’s
employment with the Company and the termination thereof. 

     NOW, THEREFORE, in consideration of the representations and promises made herein, and for other good and valuable consideration, the receipt and sufficiency of which the parties hereto agree, and
intending to be legally bound, the parties enter into this Agreement and agree as follows: 

     1. Termination. Employee’s employment with the Company shall terminate without cause effective
immediately prior to the listing of the Company’s securities on the New York Stock Exchange (the “Termination Date”), subject to the terms and conditions hereof. Employee
agrees that, other than as specifically set forth in this Agreement, Employee is not due any additional benefits, or compensation for unpaid salary, bonus, severance, or accrued or unused vacation time or vacation pay.

     2. Salary Continuation.

          (a) Provided that the Employee executes this Agreement without revocation, the Company shall pay Employee the balance of his base salary due
for the Term of the Employment Agreement at the rate then in effect under the Employment Agreement on the Company’s regular bi-weekly pay day schedule (as in effect as of the Termination Date), less normal payroll deductions, until June 11,
2014, such that the total Base Salary to be paid to Employee equals Two Million Four Hundred Nineteen Thousand Seven Hundred Five Dollars ($2,419,705). The first installment shall be paid on the pay date that the Employee would have received his
bi-weekly pay without regard to this Agreement and his change in status. 

2

     3. Extension of Non Compete. Provided that the Employee executes this Agreement without revocation, the
Company shall pay to the Employee, or his designee, (i) Five Hundred Fifty-One Thousand Two Hundred and Fifty Dollars ($551,250) in one lump-sum amount, less normal payroll deductions, on the consummation of the Company’s currently
contemplated initial public offering (the “IPO Date”), and (ii) One Hundred Ninety-Eight Thousand Seven Hundred and Fifty Dollars ($198,750), in twelve substantially equal monthly installments, less normal payroll deductions, with the
first payment being made on the date that is the thirtieth day after the IPO Date (the “First Payment Date”), and each subsequent monthly payment being made on the monthly anniversary of the First Payment Date, as consideration for the
extension of the “Restricted Period” set forth in Article V of the Employment Agreement until June 11, 2015. It is intended that each installment of the payments provided for in clause (ii) in the preceding sentence shall be treated as a
separate “payment” for purposes of Section 409A of the Internal Revenue Code of 1986, as amended, and guidance issued thereunder, including Treas. Reg. § 1.409A -2(b) and Treas. Reg. § 1.409A -2(b)(2)(iii), and neither the
Company nor Employee shall have the right to accelerate or defer the delivery of such payments except to the extent specifically permitted or required by Code Section 409A. 

     4. Benefits. In accordance with the Employment Agreement: 

          (a) Employee’s current family group health care, vision and dental coverage will be continued until June 11, 2014, as follows: 

               i. through coverage under the Company’s applicable employee welfare benefit plans (each a “Company Plan”) for as long as such
benefits are required to be provided under applicable law and to the extent permitted under the applicable Company Plan, the benefits under that Company Plan shall be provided after the expiration of the required 

3

period until June 11, 2014. The Company shall pay one hundred (100%) per cent of the monthly premium for the coverage under each Company Plan. 

               ii. If a coverage under a Company Plan ceases to be provided to the Employee prior to June 11, 2014, subject to the Employee’s providing evidence of prior payment, the Company will reimburse
Employee on the 15th day of each month one hundred (100%) per cent of the cost for the month of reference, of replacement coverage identical to the coverage(s) provided under the Company Plan which has ceased to be provided. The Company shall give
the Employee no less than sixty days prior written notice of the termination of any coverage provided under a Company Plan. In the event that the benefits under a Company Plan would be taxable to the Employee, the Employee shall pay the cost of such
coverage and the Company shall reimburse the Employee for his payment thereof. 

          (b) All other benefits contained in paragraphs 4.1 (business expenses to the extent not reimbursed prior to the Termination Date), 4.2
(automobile, etc.), and 4.4 (life insurance, with the amount payable on the due date of the annual premium and the Company will assign such policy to the Employee at the request of the Employee which may be made at any time) of the Employment
Agreement, will be continued until June 11, 2014. 

          (c) Employee’s rights under the Stock Option Agreement shall be preserved in accordance with its terms; provided also that any registration statement on Form S-8 filed the Company with the Securities and Exchange Commission or any filings with any state blue sky commission or similar body shall include all
shares of Company common stock issued issuable to Employee under the Stock Option Agreement. 

          (d) With respect to the benefits set forth in paragraphs 3(a)-(c), except permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits is not subject

4

to liquidation or exchange for another benefit, (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind
benefits to be provided, in any other taxable year, provided that the foregoing clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Section
105(b) of the Code solely because such expenses are subject to a limit related to the period the arrangement is in effect and (iii) such payments shall be made on or before the last day of the Employee’s taxable year following the taxable year
in which the expense was incurred. 

     5. Restrictions on Activities.  Notwithstanding anything to the contrary set forth herein, Employee
acknowledges and agrees that, from the Termination Date and at any time while the Company’s securities are listed on the New York Stock Exchange, he shall not and he is restricted from (i) becoming a director, executive officer or employee of
the Company or any of its subsidiaries; (ii) being engaged as a consultant to the Company or any of its subsidiaries; and (iii) making any public communications about the Company or its securities or promoting the trading of the Company’s
securities in any manner. The Company’s Board of Directors will monitor Employee’s and the Company’s compliance with the foregoing restrictions. 

     6. Stock Purchases. Employee agrees that neither he, nor any of his affiliates, will, either directly or
indirectly including through any immediate family member or any family trusts, purchase any shares of the Company’s common stock either from the Company or in secondary market transactions.

     7. Return of Documents.  Except for documents which Employee has kept on his personal computer and maintained
in the ordinary course of business during his employment, Employee certifies that he does not have in his possession, nor has he deleted, destroyed or

5

otherwise failed to return, any devices, records, data, notes, reports, proposals, lists, software, hardware, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or
reproductions of any of these items belonging to the Company which were in his possession or to which he had access. Employee agrees that within twenty (20) days of his execution of this Agreement he will return to the Company through his counsel
all documents (if any) on his personal computer related to the Company and agrees that he will delete and destroy any such documents from his personal computer and any hard copies which he may have in his possession.

     8. (a) Employee’s Release and Waiver of Claims. Except as provided for in this
Agreement, in consideration of the Company’s release in paragraph 8(b) hereof, Employee waives and releases any and all legally waivable claims, suits, damages, liabilities, demands and causes of action, whether known or unknown, existing or
contingent, or whether at law or equity, which Employee ever had or may have against the Company, its parent, subsidiaries, affiliated businesses and divisions, and/or their directors, officers, employees or agents (hereinafter collectively referred
to as “Releasees”), arising out of his employment with the Company or the termination of that employment (hereinafter collectively referred to as "Claims"), including, but not limited to, any claims arising under his Employment Agreement, Title VII of the Civil Rights Act of 1964, as amended (“Title VII”); the Civil Rights Act of 1866
(“Section 1981”); the Age Discrimination in Employment Act (“ADEA”); the Americans with Disabilities Act of 1990, as amended (the “ADA”); the Equal Pay Act (“EPA”); the Family and Medical Leave Act
(“FMLA”); the Employee Retirement Income Security Act (“ERISA”); the Occupational Safety and Health Act (“OSHA”); the Older Workers Benefit Protection Act (“OWBPA”); the New Jersey Law Against Discrimination
(“LAD”); and any and all other federal, state, or local laws,

6

and any common law claims now or hereafter recognized, as well as all claims for counsel fees and costs; provided that the Company’s obligations under this Agreement
shall survive execution of this release. 

          (b) Company’s Release and Waiver of Claims.  Except as provided for in paragraph 3 of this Agreement, in
consideration of Employee’s release in paragraph 8(a) hereof, the Company waives and releases any and all legally waivable claims, suits, damages, liabilities, demands and causes of action, whether known or unknown, existing or contingent, or
whether at law or equity, which the Company ever had or may have against Employee, his heirs, executors, attorneys and assigns, for, upon or by reason of any matter whatsoever which occurred up to the date of this release, including, but not limited
to, any and all claims under his Employment Agreement and all claims arising out of, relating to, or based upon, his employment by Company, or any alleged violation of local, state or federal law, regulation or ordinance, and/or public policy,
contract, tort or common law, and including, but not limited to, any claims for costs, attorneys’ fees, or expenses. 

          (c) Indemnification.

               i. In the event Employee was or is made a party or is threatened to be made a party to or is otherwise involved in any threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative (hereinafter a “proceeding”), by reason of the fact that he was an employee of the Company (hereinafter an “indemnitee”), whether the basis of such proceeding is alleged action in an official capacity while serving as an employee or in any other capacity while serving as an employee, Employee shall be
indemnified and held harmless by the Company to the fullest extent authorized by the Delaware General Corporation Law (the “DGCL”), as the same exists or may hereafter be amended
(but, in the case 

7

of any such amendment, only to the extent that such amendment permits the Company to provide broader indemnification rights than permitted prior thereto), against all expense, liability and loss (including attorneys’ fees,
judgments, fines, excise taxes or amounts paid in settlement) reasonably incurred or suffered by Employee in connection therewith, and such indemnification shall continue as to an indemnitee like Employee who has ceased to be an employee and shall
inure to the benefit of Employee’s heirs, testators, intestates, executors and administrators; provided, however, that
Employee acted in good faith and in a manner he reasonably believed to be in, or not opposed to, the best interests of the Company, and with respect to a criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful;
provided further, however, that no indemnification shall be made in the
case of an action, suit or proceeding by or in the right of the Company in relation to matters as to which it shall be adjudged in such action, suit or proceeding that Employee is liable to the Company, unless a court having jurisdiction shall
determine that, despite such adjudication, Employee is fairly and reasonably entitled to indemnification. The right to indemnification conferred in this paragraph 8(c) shall be a contract right and shall include the right to be paid by the Company
the expenses incurred in defending any such proceeding in advance of its final disposition (hereinafter an “advancement of expenses”); provided, however, that, an advancement of expenses shall be made only upon delivery to the Company of an undertaking (hereinafter an
“undertaking”), by or on behalf of Employee, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no further right
to appeal (hereinafter a “final adjudication”) that Employee is not entitled to be indemnified for such expenses under this paragraph 8(c) or otherwise.

8

               ii. If a claim under clause i above is not paid in full by the Company within 60 days after a written claim has been received by the Company, except in the case of a claim for an advancement of
expenses, in which case the applicable period shall be 20 days, Employee may at any time thereafter bring suit against the Company to recover the unpaid amount of the claim. If successful in whole or in part in any such suit, or in a suit brought by
the Company to recover an advancement of expenses pursuant to the terms of any undertaking, Employee shall be entitled to be paid also the expense of prosecuting or defending such suit. In (x) any suit brought by Employee to enforce a right to
indemnification hereunder (but not in a suit brought by Employee to enforce a right to an advancement of expenses), and (y) in any suit by the Company to recover an advancement of expenses pursuant to the terms of an undertaking, the Company shall
be entitled to recover such expenses upon a final adjudication that Employee has not met the applicable standard of conduct set forth in the DGCL. Neither the failure of the Company (including the Board, independent legal counsel, or the
stockholders) to have made a determination prior to the commencement of such suit that indemnification of Employee is proper in the circumstances because Employee has met the applicable standard of conduct set forth in the DGCL, nor an actual
determination by the Company (including the Board, independent legal counsel or the stockholders) that Employee has not met such applicable standard of conduct, shall create a presumption that Employee has not met the applicable standard of conduct
or, in the case of such a suit brought by Employee, be a defense to such suit. In any suit brought by Employee to enforce a right to indemnification or to an advancement of expenses hereunder, or by the Company to recover an advancement of expenses
pursuant to the terms of an undertaking, the burden of proving that Employee is not entitled to be indemnified, or to such advancement of expenses, under this paragraph or otherwise shall be on the Company.

9

     9. Nondisparagement. 

          (a) Employee agrees not to make any disparaging remarks or statements regarding the Company’s products, business practices, operations, or
the professional careers and/or personal lives of any Company employee, officer or director of the Company to any person or entity, either orally or in writing, except as may be required by law. Employee further represents that effective with the
signing of this Agreement, he has not disparaged or subverted the business practices, operations, professional careers and/or personal lives of any employee, officer, director of the Company.

          (b) The Company agrees not to, and will instruct its directors, officers and key employees not to, make any disparaging remarks or statements
regarding Employee or his business practices, professional career and/or personal life to any person or entity, either orally or in writing, except as may be required by law. The Company further represents that, effective with the signing of this
Agreement, it and its directors, officers and key employees have not disparaged or subverted Employee’s professional career and/or personal life. 

     10. Taxes.  Any payments provided for in this Agreement shall be paid net of any applicable income tax withholding required by federal, state or local law.

     11. Cooperation. Following the Termination Date, Employee agrees: 

          (a) To make himself available, without additional compensation, on reasonable occasions until June 11, 2014 with reasonable prior notice, to
respond to all attorneys, representatives and advisors regarding all matters associated with his employment at the Company including, without limitation, his prior responsibilities, and all the processes and procedures of which he acquired knowledge
while employed by the Company. In this regard, the parties acknowledge and agree that in providing such responses, Employee shall not be 

10

required to be present at the Company’s offices on a regular basis, but Employee agrees to make himself available at reasonable times to meet by phone with the Company or its employees, agents, representatives and advisors.
The Company shall reimburse Employee for any reasonable and necessary expenses he incurs in fulfilling this obligation. For purposes of this paragraph, any phone discussion or appearance by Employee for any period of time in excess of four hours on
any business day shall count as participation for a full business day. 

          (b) To make himself available, without additional compensation, on reasonable occasions until June 11, 2014, with reasonable prior notice and
without the requirement of being subpoenaed, to confer with counsel by phone concerning any knowledge he had or may have with respect to actual and/or potential disputes arising out of the activities of the Company during his period of employment by
the Company.  The Company shall reimburse Employee for any reasonable and necessary expenses he incurs in fulfilling this obligation. For purposes of this paragraph, any phone discussion or appearance by Employee for any period of time on any
business day in excess of four hours shall count as participation for a full business day. 

          (c) To submit to deposition and/or testimony and/or participate in an investigation by any government agency in accordance with the laws of the
forum involved concerning any knowledge he has or may have with respect to actual and/or potential disputes or issues arising out of the activities of the Company during his period of employment by the Company. The Company shall reimburse Employee
for any reasonable and necessary expenses he incurs in fulfilling this obligation, including reasonable attorneys’ fees and costs. 

     12. Attorneys’ Fees. In the event either party claims the other party has breached this Agreement, the prevailing party shall be reimbursed promptly by the other party for all

11

reasonable attorneys’ fees and costs incurred by the prevailing party in connection with its enforcement of this Agreement or related to the breach thereof. The Company shall reimburse Employee promptly for his reasonable
attorneys’ fees and disbursements in connection with the preparation and negotiation of this Agreement and any amendments hereto. 

     13. Entire Agreement.  This Agreement embodies the sole and entire agreement between Employee and the Company
and all Releasees concerning the resolution of all matters with respect to Employee’s employment with the Company. Except as specifically mentioned otherwise in this Agreement, all prior agreements, arrangements, and/or understandings, written
or oral, expressed or implied, including, but not limited to, the Employment Agreement, between Employee and the Company or any Releasee are replaced and superseded by this Agreement, and are no longer of any force and effect. In executing this
Agreement, Employee represents that he is not relying on any inducements, promises, or representations of the Company or Releasees other than expressly set forth in this Agreement. 

     14. Confidentiality. The parties hereto agree and acknowledge that this Agreement and the terms hereof are and
will remain strictly confidential, and they further agree not to disclose or cause to be disclosed, the existence of this Agreement or the terms hereof to any person or entity whatsoever, except as may be necessary to comply with any legal
requirement (including the requirements of the Federal securities laws) or court order or in connection with any action to enforce this Agreement.

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

12

     16. Acknowledgement. With the signing of this Agreement, Employee affirms that he has carefully read this
entire document. Employee understands that by signing this document, he is waiving and releasing all claims relating to his employment with the Company and the termination of that employment other than the items provided for in this Agreement.
Employee acknowledges signing this Agreement voluntarily intending to be legally bound.  Employee acknowledges that he has had a full and fair opportunity to review this Agreement with legal counsel, and that he has been given twenty-one days to
consider this Agreement. Employee may fax this signed Agreement to the Chief Executive Officer of the Company, at (201) 969-1886 or mail it to the Chief Executive Officer, at the Company’s offices at 433 Hackensack Avenue, 6th Floor, Hackensack, New Jersey 07601. Employee may revoke this Agreement for a period of seven days following the date Employee signs it by submitting written notice of his revocation to the Chief
Executive Officer of the Company as set forth in the preceding sentence.  If not revoked, this Agreement shall become effective and enforceable upon expiration of this revocation period.

     17. Governing Law.

          (a) This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey, United States of America, without
giving effect to the principles of conflicts of laws thereof.

          (b) Any dispute arising out of, or relating to, this Agreement or the breach thereof or regarding the interpretation thereof shall be finally
settled by arbitration conducted in Newark, New Jersey in accordance with the National Rules for the Resolution of Employment Disputes of the American Arbitration Association then in effect before a single arbitrator appointed in accordance with
such rules. Judgment upon any award rendered therein may be 

13

entered and enforcement obtained thereon in any court having jurisdiction. The arbitrator shall have authority to grant any form of appropriate relief, whether legal or equitable in nature, including specific performance.  For the
purpose of any judicial proceeding to enforce such award or incidental to such arbitration or to compel arbitration, the parties hereby submit to the exclusive jurisdiction of the Superior Court of the State of New Jersey, Bergen County, or the
United States District Court for the District of New Jersey, and agree that service of process in such arbitration or court proceedings shall be satisfactorily made upon it if sent by registered mail addressed to it at the address referred to in the
heading to this Agreement. The costs of such arbitration shall be borne proportionate to the finding of fault as determined by the arbitrator. Judgment on the arbitration award may be entered by any court of competent jurisdiction. 

          (c) It is intended that the provisions of this Agreement comply with Section 409A of the Code and the regulations and guidance promulgated
thereunder (collectively “Code Section 409A”), and all provisions of this Agreement shall be construed in a manner consistent with the requirements for avoiding taxes or penalties
under Code Section 409A. If any provision of this Agreement would cause the Employee to incur any additional tax or interest under Code Section 409A, the Company shall, upon the specific request of the Employee, use its reasonable business efforts
to in good faith reform such provision to comply with Code Section 409A; provided, that to the maximum extent practicable, the original intent and economic benefit to the Employee and the
Company of the applicable provision shall be maintained, but the Company shall have no obligation to make any changes that could create any additional economic cost or loss of benefit to the Company. 

          (d) If any payment or benefit (or any acceleration of any payment or benefit) made
or provided to the Employee or for the Employee’s benefit in connection
with this

14

Agreement (the “Payments”) is determined in good faith by the Company or the Employee, or an applicable taxing authority to be subject to the taxes and/or
interest charges imposed by Code Section 409A, or any state, local, or foreign taxes of a similar nature, or any interest charges or penalties with respect to such taxes and/or interest charges (such taxes and interest charges, together with any
such interest charges and penalties, are collectively referred to as the “Section 409A Tax”), then the Company shall pay the Employee, within thirty days after the date on which
the Employee provides the Company with a written request for reimbursement thereof (accompanied by proof of the Section 409A Tax paid), but in no event later than the end of the Employee’s taxable year next following the Employee’s taxable
year in which the Employee remits the Section 409A Tax to the Internal Revenue Service or other applicable taxing authority, an additional amount as determined under this provision (the “Section 409A Gross-Up
Payment”). The Section 409A Gross-Up Payment shall be such that the net amount retained by the Employee after deduction of the Section 409A Tax and any federal, state, or local taxes upon the payment provided for
by this paragraph shall be equal to the Payments. For purposes of determining the amount of the Section 409A Gross-Up Payment, the Employee shall be deemed to pay federal taxes at the highest marginal rate of federal taxation in the calendar year in
which the Section 409A Gross-Up Payment is to be made, and state and local taxes at the highest marginal rate of taxation in the state and locality of the Employee’s domicile for tax purposes on the date the Section 409A Gross-Up Payment is
made, net of the maximum reduction in federal taxes that may be obtained from the deduction of such state and local taxes. The Company and the Employee shall reasonably cooperate with each other in connection with any administrative or judicial
proceedings concerning the existence or amount of liability for Section 409A Tax with respect to the Payments, and the Employee shall, if reasonably requested by the Company,

15

contest any obligation to pay a Section 409A Tax for which a Section 409A Gross-Up Payment is owed, provided that no such contest shall be required or be required to be continued if the Company is in breach of this Agreement.

     In the event that the Employee incurs expenses, including but not limited to reasonable attorneys, accountants, and tax counsel fees and costs related to the tax audit or litigation, due to a tax
audit or litigation addressing the existence or amount of a Section 409A Tax (collectively referred to as the “Tax Expenses”), then the Company shall pay the Employee, within
thirty days after the date on which the Employee provides the Company with a written request for reimbursement thereof (accompanied by proof of Tax Expenses paid), but in no event later than the end of the Employee’s taxable year following the
Employee’s taxable year in which the Employee remits the Section 409A Tax that is subject to the audit or litigation to the Internal Revenue Service or other applicable taxing authority, or where as a result of such audit or litigation no
Section 409A Tax is remitted, the end of the Employee’s taxable year following the Employee’s taxable year in which the audit is completed or there is a final and nonappealable settlement or other resolution of the litigation, an amount
equal to the amount of the Tax Expense with regard to which the Employee has requested reimbursement. 

     18. Severability.  Whenever possible each provision of this Agreement shall be interpreted in such manner as
to be effective and valid under the applicable law, but if any provision of this Agreement shall be or become prohibited or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity without
invalidating the remainder of such provision or the remaining provisions of this Agreement.

16

     19. Waiver. Waiver by either of the parties of any breach of any provision of this Agreement shall not operate
or be construed as a waiver of any prior or subsequent breach of the same or any other provision hereof. 

     20. Amendment.  This Agreement may be amended, modified, superseded or canceled, in whole or in part, only by
written instrument executed by Employee and by an authorized representative of the Company. 

     21. Assignment. This Agreement shall inure to the benefit of, and shall be binding upon, the parties hereto
and their respective successors, assigns, heirs and legal representatives, including any successors of the Company by way of merger, consolidation, purchase, or transfer of all or substantially all of the assets or stock of the Company and any
parent, subsidiary or affiliate of the Company to which the Company may transfer its rights under and pursuant to this Agreement. The Company shall require any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise)
to all or substantially all of the business and/or assets of the Company to expressly assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken
place.

[the rest of this page is left intentionally blank] 

17

     IN WITNESS WHEREOF, the parties have executed this
Separation Agreement or caused the same to
be executed by a duly authorized officer as of the date first written above.

	 	 	WAVE2WAVE COMMUNICATIONS, INC.
	 	 	 	 	 
	
/s/ Andrew Bressman  	 	By:  	/s/ Steven Asman  	 
	
 Andrew Bressman
  	   	
 Authorized Signer  
	   
	
DATE: May 6, 2010  	
    DATE: May 6, 2010  

18Exhibit 10.83

THIRD FORBEARANCE AGREEMENT

 

This Third Forbearance Agreement (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”) is made and entered into as of May 11, 2010 by and among Wave2Wave Communications, Inc., a Delaware corporation (“Borrower”), RNK, Inc., a Massachusetts corporation (“RNK”), Wave2Wave VOIP Communications, LLC, a Delaware limited liability company (“VOIP”), Wave2Wave Data Communications, LLC, a Delaware limited liability company (“Wave Data”), Wave2Wave Communications Mid-West Region, LLC, a Delaware limited liability company (“Wave
Communications”), RNK VA, LLC, a Virginia limited liability company (“RNK VA” RNK VA, together with Borrower, RNK, VOIP, Wave Data and Wave Communications are sometimes hereinafter referred to individually as a “Company” and collectively as the “Companies”), the financial institutions party hereto as “Lenders” (collectively, the “Lenders”) and Victory Park Management, LLC, as administrative agent and collateral agent for the Lenders (in such capacity, the “Agent”).

WHEREAS:

A.           The Companies, the Lenders and the Agent are parties to that Financing Agreement dated as of September 8, 2009 (as amended, restated, supplemented or otherwise modified from time to time, the “Financing Agreement”), pursuant to which the Lenders agreed to purchase up to $9,300,000 of senior secured notes of the Companies on the terms and subject to the conditions set forth in the Financing Agreement. 

B.           The transactions contemplated by the Financing Agreement are evidenced, governed and secured by, among other things:  (i) the Financing Agreement; (ii) the Senior Secured Term Note dated September 8, 2009 in the stated principal amount of $7,548,000 issued by Borrower to Victory Park Credit Opportunities, L.P. and the Senior Secured Term Note dated September 8, 2009 in the stated principal amount of $1,752,000 issued by Borrower to Victory Park Special Situations, L.P. (together, the “Term Note”); (iii) the Security Agreement (as defined in the Financing Agreement); (iv) the Pledge Agreement (as defined in the Financing Agreement); (v) the Affiliate Subordination Agreements (as defined in the Financing Agreement) and (vi)
certain UCC financing statements.

C.           The Term Note (and all of the rights, title and interests thereunder) have been assigned to Victory Park Credit Opportunities Master Fund, Ltd.  

D.           On April 16, 2010, the Companies, Agent and Lenders entered into that certain Second Forbearance Agreement and Amendment to Financing Agreement (the “Second Forbearance Agreement”) pursuant to which, among other things, the Agent and Lenders agreed to forbear from exercising rights and remedies available to them as a result of the “Second Forbearance Events of Default” (as defined in the Second Forbearance Agreement).

E.           As of the date of this Agreement, in addition to such Second Forbearance Events of Default, the Obligations have not been paid in full to Agent and Lenders and, as a result thereof, an Event of Default exists under subsection 10.1(a) of the Financing Agreement (the “Payment Maturity Default”). 

 

 

 

F.            As a result of the Payment Maturity Default (i) the Forbearance Period under and as defined in the Second Forbearance Agreement has terminated and (ii) the Lenders and the Agent may exercise any and all of their respective rights and remedies under the Transaction Documents and applicable law.

G.           The Companies have requested that the Lenders and the Agent agree to continue to forbear from exercising certain of their rights and remedies against the Companies with respect to the Third Forbearance Events of Default (as hereinafter defined) during the Forbearance Period (as hereinafter defined).

H.           Subject to the terms and conditions set forth herein, the Lenders and the Agent have agreed to accommodate such request.

I.             This Agreement constitutes one of the Transaction Documents (as defined in the Financing Agreement).

J.            The obligations owed by the Companies to the Lenders and the Agent under this Agreement (as well as the other Transaction Documents) are secured pursuant to the Security Agreement and the other Security Documents, and by the collateral and security interests described therein, and reference is made thereto for a statement of terms and provisions of such collateral security, a description of Collateral and the rights of the Agent and the Lenders in respect thereof.  The Lenders and the Agent each constitute one of the “Secured Parties” under the Security Agreement.

NOW, THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

1.            Recitals.  The recitals set forth above constitute an integral part of this Agreement, evidencing the intent of the parties in executing this Agreement, and describing the circumstances surrounding this execution.  Accordingly, such recitals are, by express reference, hereby acknowledged and agreed among the parties and made a part of this Agreement, and this Agreement shall be construed in the light thereof.    

2.            Definitions.  Unless otherwise defined below or elsewhere in this Agreement, capitalized terms used herein shall have the meanings ascribed to them in the Financing Agreement. As used herein, the following terms shall have the respective meanings set forth below:

(a)          “Claims” means claims, actions, causes of action, suits, debts, accounts, interests, liens, promises, warranties, damages and consequential damages, demands, agreements, bonds, bills, specialties, covenants, controversies, variances, trespasses, judgments, executions, costs, expenses or any other claims whatsoever (including, without limitation, cross-claims, counterclaims, rights of set-off and recoupment). 

(b)          “Forbearance Default” means (i) the occurrence of any Event of Default other than the Third Forbearance Events of Defaults; (ii) the failure of any Company to timely comply with any term, condition or covenant set forth in this Agreement; (iii) the failure of any 

 

2

 

 

representation or warranty made by any Company under or in connection with this Agreement to be true and complete as of the date when made, or any other breach of any such representation or warranty; (iv) the occurrence of any of the following: (x) any Company repudiates or asserts a defense against all or any portion of the Obligations or (y) any Company makes or pursues a claim against Agent, any Lender or any Releasee; (v) any occurrence, event or change in facts or circumstances occurring on or after the Forbearance Effective Date that would reasonably be likely to have a Material Adverse Effect; or (vi) the occurrence of any Subordinated Creditor Action (as defined in Section 18 hereof).  The parties hereby agree that, notwithstanding any provision in the Transaction Documents, there shall be no cure period for any Forbearance Default.

(c)          “Forbearance Effective Date” means, subject to satisfaction of the conditions set forth in Section 4 hereof, the date hereof.

(d)          “Forbearance Period” means the period beginning on the Forbearance Effective Date and ending on the earlier to occur of (i) the termination of the Forbearance Period as a result of any Forbearance Default or (ii) 5:00 p.m. (Chicago time) on May 19, 2010.  

(e)          “Releasees” means the Lenders, the Agent and their respective affiliates, affiliated and/or managed funds, subsidiaries, shareholders and “controlling persons” (within the meaning of the federal securities laws), and their respective successors and assigns and each and all of the officers, directors, employees, principals, managers, investment managers, members, agents, attorneys and other representatives of each of the foregoing in their capacities as such. 

(f)           “Releasors” means each Company and its respective agents, representatives, officers, directors, advisors, employees, subsidiaries, affiliates, successors and assigns.

(g)          “Third Forbearance Events of Default” means, collectively, the Second Forbearance Events of Default under and as defined in the Second Forbearance Agreement and the Payment Maturity Default.  

            3.            Confirmation of Obligations and Acknowledged Events of Default.  

(a)          Each Company acknowledges and agrees that, as of the date of this Agreement, the aggregate principal balance of the outstanding obligations under the Term Note is $9,300,000. The foregoing amounts do not include interest, fees, expenses or other amounts that are chargeable or otherwise reimbursable under the Transaction Documents. All of the obligations, including those set forth above, are valid and outstanding, and the Companies have no rights of offset, defenses, claims or counterclaims with respect to any of the obligations under the Transaction Documents.  

(b)          Each Company acknowledges and agrees that, except for the Third Forbearance Events of Default, no other Events of Default have occurred or are continuing to occur as of the date of this Agreement, or are expected to occur during the Forbearance Period. 

4.            Conditions.  This Agreement shall not become effective unless and until Companies shall have paid to Agent, for the benefit of Agent and the applicable Lenders, an 

 

3

 

 

aggregate of $1,349,000, consisting of (a) $744,000 in accrued, unpaid and prepaid interest through and including May 19, 2010, (b) $550,000 in accrued forbearance fees, (c) $5,000 in Maintenance Fees for the months of April and May 2010 and (d) $50,000 in costs and expenses.  

            5.            Forbearance; Forbearance Default Rights and Remedies.  

(a)          Effective on the Forbearance Effective Date, each of the Lenders and the Agent agrees that until the expiration or termination of the Forbearance Period, it will forbear from exercising its default-related rights and remedies against any Company or the Collateral solely with respect to the Third Forbearance Events of Defaults, including acceleration and foreclosure; provided that (i) neither any Lender nor the Agent shall have any obligation to make any further loans or other extensions of credit to any Company; (ii) each Company shall comply with all limitations, restrictions or prohibitions that would otherwise be effective or applicable under the Transaction Documents during the continuance of any Event of Default; (iii) nothing herein
shall restrict, impair or otherwise affect the Lenders’ or the Agent’s rights and remedies under any agreements containing subordination provisions (including, without limitation, the Affiliate Subordination Agreements) in favor of the Lenders or the Agent (including, without limitation, any rights or remedies available to the Lenders or the Agent as a result of the occurrence or continuation of any Third Forbearance Event of Default) or amend or modify any provision thereof; and (iv) nothing herein shall restrict, impair or otherwise affect the Agent’s right to file, record, publish or deliver a notice of default or document of similar effect under any state foreclosure law upon the expiration or termination of the Forbearance Period. Any Forbearance Default shall constitute an immediate Event of Default under this Agreement and the Transaction Documents without the requirement of any demand, presentment, protest or notice of any kind to any Company (all of which each
Company waives).

(b)          Upon the occurrence of a Forbearance Default or the expiration of the Forbearance Period, the agreement of the Lenders and the Agent hereunder to forbear from exercising their respective default-related rights and remedies shall immediately terminate without the requirement of any demand, presentment, protest or notice of any kind to any Company (all of which each Company waives).  Each Company agrees that the Lenders and the Agent may at any time thereafter proceed to exercise any and all of their respective rights and remedies under the Transaction Documents or applicable law, including, without limitation, their respective rights and remedies with respect to the Third Forbearance Events of Default. Without limiting the generality of the foregoing, upon the occurrence of a Forbearance
Default or the expiration of the Forbearance Period, each Lender and the Agent may, in their sole discretion and without the requirement of any demand, presentment, protest or notice of any kind to any Company (all of which each Company waives):  (i) suspend or terminate any commitment to provide loans or other extensions of credit under any Transaction Document; (ii) commence any legal or other action to collect any or all of the obligations under the Transaction Documents from any Company; (iii) foreclose or otherwise realize on any or all of the Collateral; (iv) set off or apply to the payment of any or all of the obligations under the Transaction Documents any property belonging to any Company that is held by a Lender or the Agent; and (v) take any other enforcement action or otherwise exercise any or all rights and remedies provided for by any Transaction Document or applicable law, all of which rights and remedies are fully reserved by the Lenders and the Agent.

 

4

 

 

 

(c)          Any agreement by the Lenders and the Agent to extend the Forbearance Period or to waive a Forbearance Default must be set forth in writing and signed by a duly authorized signatory of each Lender and the Agent. The Lenders and the Agent are not obligated to extend the Forbearance Period or waive a Forbearance Default, and may decide to do so (or not do so) in their sole discretion.  Each Company acknowledges that the Lenders and the Agent have not made any assurances concerning any extension of the Forbearance Period or waiver of any Forbearance Default.

(d)          The parties hereto agree that the running of all statutes of limitation or doctrine of laches applicable to all claims or causes of action that any Lender or the Agent may be entitled to take or bring in order to enforce its rights and remedies against any Company is, to the fullest extent permitted by law, tolled and suspended during the Forbearance Period.

(e)          Each Company acknowledges and agrees that any loan or other financial accommodation which any Lender or the Agent makes on or after the Forbearance Effective Date has been made by such party in reliance upon, and is consideration for, among other things, the general releases and indemnities contained in Section 7 hereof and the other covenants, agreements, representations and warranties of the Companies hereunder.

6.            Reserved.  

7.            General Release; Indemnity.  

(a)          IN  CONSIDERATION OF, AMONG OTHER THINGS, THE LENDERS’ AND THE AGENT’S EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE RELEASORS HEREBY FOREVER AGREES AND COVENANTS NOT TO SUE OR PROSECUTE AGAINST ANY RELEASEE AND HEREBY FOREVER WAIVES, RELEASES AND DISCHARGES, TO THE FULLEST EXTENT PERMITTED BY LAW, EACH RELEASEE FROM ANY AND ALL CLAIMS THAT SUCH RELEASOR NOW HAS OR HEREAFTER MAY HAVE, OF WHATSOEVER NATURE AND KIND, WHETHER KNOWN OR UNKNOWN, WHETHER NOW EXISTING OR HEREAFTER ARISING, WHETHER ARISING AT LAW OR IN EQUITY, AGAINST THE RELEASEES, BASED IN WHOLE OR IN PART ON FACTS, WHETHER OR NOT NOW KNOWN, EXISTING ON OR BEFORE THE FORBEARANCE EFFECTIVE DATE, THAT RELATE TO, ARISE OUT OF OR OTHERWISE ARE IN CONNECTION WITH: (I) ANY OR ALL OF THE TRANSACTION DOCUMENTS OR
TRANSACTIONS CONTEMPLATED THEREBY OR ANY ACTIONS OR OMISSIONS IN CONNECTION THEREWITH; OR (II) ANY ASPECT OF THE DEALINGS OR RELATIONSHIPS BETWEEN OR AMONG THE COMPANIES, ON THE ONE HAND, AND THE LENDERS AND/OR THE AGENT, ON THE OTHER HAND, RELATING TO ANY OR ALL OF THE DOCUMENTS, TRANSACTIONS, ACTIONS OR OMISSIONS REFERENCED IN CLAUSE (I) HEREOF.  THE EXECUTION OF THIS AGREEMENT BY EACH COMPANY SHALL CONSTITUTE A RATIFICATION, ADOPTION, AND CONFIRMATION BY SUCH PARTY OF THE FOREGOING GENERAL RELEASE OF ALL CLAIMS AGAINST THE RELEASEES WHICH ARE BASED IN WHOLE OR IN PART ON FACTS, WHETHER OR NOT NOW KNOWN OR UNKNOWN, EXISTING ON OR PRIOR TO THE EXECUTION OF THIS AGREEMENT.  IN ENTERING INTO THIS AGREEMENT, EACH COMPANY CONSULTED WITH, AND HAS BEEN 

 

5

 

 

REPRESENTED BY, LEGAL COUNSEL AND EXPRESSLY DISCLAIMS ANY RELIANCE ON ANY REPRESENTATIONS, ACTS OR OMISSIONS BY ANY OF THE RELEASEES AND HEREBY AGREES AND ACKNOWLEDGES THAT THE VALIDITY AND EFFECTIVENESS OF THE RELEASES SET FORTH ABOVE DO NOT DEPEND IN ANY WAY ON ANY SUCH REPRESENTATIONS, ACTS OR OMISSIONS OR THE ACCURACY, COMPLETENESS OR VALIDITY HEREOF.  THE PROVISIONS OF THIS SECTION SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT, ANY TRANSACTION DOCUMENT, AND PAYMENT IN FULL OF THE OBLIGATIONS UNDER THE TRANSACTION DOCUMENTS.

(b)          EACH COMPANY HEREBY AGREES THAT IT SHALL BE JOINTLY AND SEVERALLY OBLIGATED TO INDEMNIFY AND HOLD THE RELEASEES HARMLESS WITH RESPECT TO ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, COSTS, EXPENSES OR DISBURSEMENTS OF ANY KIND OR NATURE WHATSOEVER INCURRED BY THE RELEASEES, OR ANY OF THEM, WHETHER DIRECT, INDIRECT OR CONSEQUENTIAL, AS A RESULT OF OR ARISING FROM OR RELATING TO ANY PROCEEDING BY, OR ON BEHALF OF ANY PERSON, INCLUDING, WITHOUT LIMITATION, THE RESPECTIVE OFFICERS, DIRECTORS, AGENTS, TRUSTEES, CREDITORS, PARTNERS OR SHAREHOLDERS OF ANY COMPANY, OR ANY OF THEIR RESPECTIVE SUBSIDIARIES, WHETHER THREATENED OR INITIATED, IN RESPECT OF ANY CLAIM FOR LEGAL OR EQUITABLE REMEDY UNDER ANY STATUTE, REGULATION OR COMMON LAW PRINCIPLE ARISING FROM
OR IN CONNECTION WITH THE NEGOTIATION, PREPARATION, EXECUTION, DELIVERY, PERFORMANCE, ADMINISTRATION AND ENFORCEMENT OF THE TRANSACTION DOCUMENTS, THIS AGREEMENT OR ANY OTHER DOCUMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH; PROVIDED, THAT NO COMPANY SHALL HAVE ANY OBLIGATION TO INDEMNIFY OR HOLD HARMLESS ANY RELEASEE HEREUNDER WITH RESPECT TO LIABILITIES TO THE EXTENT THEY RESULT FROM THE WILLFUL MISCONDUCT OF THAT RELEASEE AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION. IF AND TO THE EXTENT THAT THE FOREGOING UNDERTAKING MAY BE UNENFORCEABLE FOR ANY REASON, EACH COMPANY AGREES TO MAKE THE MAXIMUM CONTRIBUTION TO THE PAYMENT AND SATISFACTION THEREOF WHICH IS PERMISSIBLE UNDER APPLICABLE LAW. THE FOREGOING INDEMNITY SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT, ANY TRANSACTION DOCUMENT, AND THE PAYMENT IN FULL OF THE OBLIGATIONS UNDER THE TRANSACTION DOCUMENTS.

(c)          EACH COMPANY, ON BEHALF OF ITSELF AND ITS SUCCESSORS, ASSIGNS, AND OTHER LEGAL REPRESENTATIVES, HEREBY ABSOLUTELY, UNCONDITIONALLY AND IRREVOCABLY, COVENANTS AND AGREES WITH AND IN FAVOR OF EACH RELEASEE THAT IT WILL NOT SUE (AT LAW, IN EQUITY, IN ANY REGULATORY PROCEEDING OR OTHERWISE) ANY RELEASEE ON THE BASIS OF ANY CLAIM RELEASED, REMISED AND DISCHARGED BY ANY COMPANY PURSUANT TO SECTION 7 HEREOF.  IF ANY COMPANY OR ANY OF ITS SUCCESSORS, ASSIGNS OR OTHER LEGAL REPRESENTATIVES VIOLATES THE FOREGOING COVENANT, EACH COMPANY, FOR ITSELF AND ITS 

 

6

 

 

SUCCESSORS, ASSIGNS AND LEGAL REPRESENTATIVES, AGREES TO PAY, IN ADDITION TO SUCH OTHER DAMAGES AS ANY RELEASEE MAY SUSTAIN AS A RESULT OF SUCH VIOLATION, ALL ATTORNEYS’ FEES AND COSTS INCURRED BY ANY RELEASEE AS A RESULT OF SUCH VIOLATION.

8.            Representations and Warranties of the Companies.  To induce each Lender and the Agent to execute and deliver this Agreement, each Company represents, warrants and covenants that:

(a)          The execution, delivery and performance by each Company of this Agreement and all documents and instruments delivered in connection herewith have been duly authorized by all necessary corporate action required on its part, and this Agreement and all documents and instruments delivered in connection herewith are legal, valid and binding obligations of such Company enforceable against such Company in accordance with its terms except as the enforcement thereof may be subject to (i) the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and (ii) general principles of equity (regardless of whether enforcement is sought in a proceeding in equity or at law). 

(b)          Except with respect to the Third Forbearance Events of Default, each of the representations and warranties set forth in the Transaction Documents is true and correct in all material respects (without duplication of any materiality qualifier contained therein) on and as of the date hereof as if made on the date hereof, except to the extent such representations and warranties expressly relate to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (without duplication of any materiality qualifier contained therein) as of such earlier date, and each of the agreements and covenants in the Transaction Documents is hereby reaffirmed with the same force and effect as if each were separately stated herein and made as of the date hereof.

(c)          Neither the execution, delivery and performance of this Agreement and all documents and instruments delivered in connection herewith nor the consummation of the transactions contemplated hereby or thereby does or shall contravene, result in a breach of, or violate (i) any provision of any Company’s corporate charter, bylaws, operating agreement or other governing documents, (ii) any law or regulation, or any order or decree of any court or government instrumentality or (iii) any mortgage, deed of trust, lease, agreement or other instrument to which any Company is a party, or by which any Company or its property is bound.

(d)          As of the date of this Agreement, except for the Third Forbearance Events of Default, no Event of Default has occurred or is continuing under this Agreement or any other Transaction Document.

(e)          The Agent’s and the Lender’s security interests in the Collateral continue to be valid, binding and enforceable first-priority security interests which secure the obligations under the Transaction Documents and no tax or judgment liens are currently on record against any Company.

 

7

 

 

 

(f)           Except with respect to the Third Forbearance Events of Default, any misrepresentation of a Company, or any failure of a Company to comply with the covenants, conditions and agreements contained in any agreement, document or instrument executed or delivered by any Company with, to or in favor of any Company shall constitute a Forbearance Default hereunder and an immediate Event of Default under the Financing Agreement.

(g)        The
recitals in this Agreement are true and correct.

9.            Ratification of Liability.  Each Company, as debtor, grantor, pledgor, guarantor, assignor, or in other similar capacity in which such party grants liens or security interests in its properties or otherwise acts as an accommodation party or guarantor, as the case may be, under the Transaction Documents, hereby ratifies and reaffirms all of its payment and performance obligations and obligations to indemnify, contingent or otherwise, under each Transaction Document to which such party is a party, and each such party hereby ratifies and reaffirms its grant of liens on or security interests in its properties pursuant to such Transaction Documents to which it is a party as security for the obligations under or with respect to the Financing Agreement,
the Term Note and the other Transaction Documents, and confirms and agrees that such liens and security interests hereafter secure all of the obligations under the Transaction Documents, including, without limitation, all additional obligations hereafter arising or incurred pursuant to or in connection with this Agreement or any Transaction Document.  Each Company further agrees and reaffirms that the Transaction Documents to which it is a party now apply to all obligations as modified hereby (including, without limitation, all additional obligations hereafter arising or incurred pursuant to or in connection with this Agreement or any Transaction Document).  Each such party (a) further acknowledges receipt of a copy of this Agreement and all other agreements, documents, and instruments executed or delivered in connection herewith, (b) consents to the terms and conditions of same, and (c) agrees and acknowledges that each of the Transaction Documents, as modified hereby, remains
in full force and effect and is hereby ratified and confirmed.  Except as expressly provided herein, the execution of this Agreement shall not operate as a waiver of any right, power or remedy of any Lender or the Agent, nor constitute a waiver of any provision of any of the Transaction Documents nor constitute a novation of any of the obligations under the Transaction Documents. 

10.            Reference to and Effect Upon the Transaction Documents.

(a)          Except as specifically amended hereby, all terms, conditions, covenants, representations and warranties contained in the Transaction Documents, and all rights of the Lenders and the Agent and all of the obligations under the Transaction Documents, shall remain in full force and effect.  Each Company hereby confirms that the Transaction Documents are in full force and effect, and that no Company has any right of setoff, recoupment or other offset or any defense, claim or counterclaim with respect to any Transaction Document or the Companies’ obligations thereunder.

(b)          Except as expressly set forth herein, the execution, delivery and effectiveness of this Agreement and any consents or waivers set forth herein shall not directly or indirectly: (i) create any obligation to make any further loans or to continue to defer any enforcement action after the occurrence of any Event of Default (including, without limitation, any Forbearance Default); (ii) constitute a consent or waiver of any past, present or future 

 

8

 

 

violations of any provisions of this Agreement and the Transaction Documents; (iii) amend, modify or operate as a waiver of any provision of any Transaction Document or any right, power or remedy of any Lender or the Agent; (iv) constitute a consent to any merger or other transaction or to any sale, restructuring or refinancing transaction; or (v) constitute a course of dealing or other basis for altering any obligations under the Transaction Documents or any other contract or instrument.  Except as expressly set forth herein, each Lender and the Agent reserve all of their rights, powers, and remedies under the Transaction Documents and applicable law. All of the provisions of the Transaction Documents, including, without limitation, the time of the essence provisions, are hereby reiterated, and if ever waived previously, are hereby reinstated.

(c)          From and after the Forbearance Effective Date, (i) the term “Agreement” in the Financing Agreement, and all references to the Financing Agreement in any Transaction Document shall mean the Financing Agreement, as amended by this Agreement, and (ii) the term “Transaction Documents” defined in the Financing Agreement shall include, without limitation, this Agreement and any agreements, instruments and other documents executed or delivered in connection herewith.

(d)          Neither any Lender nor the Agent has waived, is by this Agreement waiving, or has any intention of waiving (regardless of any delay in exercising such rights and remedies), any Event of Default or Forbearance Default which may be continuing on the date hereof or any Event of Default (including, without limitation, any Third Forbearance Event of Default) or Forbearance Default which may occur after the date hereof (whether the same or similar to the Third Forbearance Events of Defaults or otherwise).  Neither any Lender nor the Agent has agreed to forbear with respect to any of its rights or remedies concerning any Event of Default or Forbearance Default (other than, during the Forbearance Period, the Third Forbearance Events of Default solely to the extent expressly set forth herein),
which may have occurred or are continuing as of the date hereof, or which may occur after the date hereof.

(e)          Each Company agrees and acknowledges that the Lenders’ and the Agent’s agreement to forbear from exercising certain of their default-related rights and remedies with respect to the Third Forbearance Events of Default during the Forbearance Period does not in any manner whatsoever limit the Lenders’ or the Agent’s right to insist upon strict compliance by the Companies with this Agreement or any Transaction Document during the Forbearance Period, except as expressly set forth herein.

(f)           This Agreement shall not be deemed or construed to be a satisfaction, reinstatement, novation or release of the Transaction Documents.

11.          Costs and Expenses.  In addition to, and not in lieu of, the terms of the Transaction Documents relating to the reimbursement of the Lenders’ and the Agent’s fees and expenses, the Companies shall reimburse each Lender and the Agent, as the case may be, promptly on demand for all fees, costs, charges and expenses, including the fees, costs and expenses of counsel and other expenses incurred in connection with this Agreement and any other agreements and documents executed or delivered in connection with this Agreement.

12.          Governing Law; Jurisdiction.  All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the 

 

9

 

 

State of Illinois, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of Illinois or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Illinois.  Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Chicago, Illinois, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.  Each party hereby irrevocably waives personal service of process and
consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.

13.          No Strict Construction.  The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

14.          Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument.  Signatures of the parties hereto transmitted by facsimile or by electronic media or similar means shall be deemed to be their original signature for all purposes.

15.          Agent and Lenders are Creditors Only.  Neither for purposes of this Agreement nor otherwise has either any Lender or the Agent agreed or consented to be an agent, principal, participant, joint venturer, partner, instrumentality or alter ego of any of the Companies.  Neither any Lender nor the Agent is, or shall be deemed to be, in control of any of the Companies, its respective operations or properties, nor is any Lender or the Agent acting as a “responsible person” with respect to the operation and management of any of the Companies or its respective properties.

16.          Severability.  The invalidity, illegality, or unenforceability of any provision in or obligation under this Agreement in any jurisdiction shall not affect or impair the validity, legality, or enforceability of the remaining provisions or obligations under this Agreement or of such provision or obligation in any other jurisdiction.  If feasible, any such offending provision shall be deemed modified to be within the limits of enforceability or validity; provided that if the offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respects shall remain valid and enforceable.

17.          Time of Essence.  Time is of the essence in the performance of each of the obligations of the Companies hereunder and with respect to all conditions to be satisfied by such parties.

18.          No Other Creditor Action.  The Lenders’ and the Agent’s agreement to forbear hereunder are expressly conditioned upon (i) the holders of the Affiliate Notes refraining from taking any Enforcement Action (as defined in each of the Affiliate Subordination Agreements) 

 

10

 

 

and (ii) all other creditors of the Companies (including, without limitation, trade creditors and subordinated secured and unsecured creditors) having a valid claim in excess of $100,000 refraining from accelerating such claim or otherwise taking any action against any Company or the Collateral to collect the full amount of its claim (including, without limitation, acceleration of indebtedness) during the Forbearance Period to collect its claim.  In the event that any such creditor takes any such action (any such action, a “Subordinated Creditor Action”), the Forbearance Period shall immediately terminate, without notice or demand.  Subject to the limitations set forth in Section 6(b) hereof, the Companies may continue to make payments to such creditors in the ordinary course of business during the Forbearance Period.

19.          Further Assurances.  The parties hereto shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

20.          Headings.  The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

21.          Notices.  All notices, requests, and demands to or upon the respective parties hereto shall be given in accordance with the Financing Agreement.

22.        Reserved. 

23.          Waivers by the Companies.  EACH COMPANY HEREBY WAIVES (A) IF THIS AGREEMENT IS FOUND NOT TO BE SUBJECT TO ARBITRATION, THE RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATED TO THIS AGREEMENT, ANY TRANSACTION DOCUMENTS, THE OBLIGATIONS UNDER THE TRANSACTION DOCUMENTS OR THE COLLATERAL; (B) PRESENTMENT, DEMAND AND PROTEST, AND NOTICE OF PRESENTMENT, PROTEST, DEFAULT, NONPAYMENT, MATURITY, RELEASE WITH RESPECT TO ALL OR ANY PART OF THE OBLIGATIONS UNDER THE TRANSACTION DOCUMENTS OR ANY COMMERCIAL PAPER, ACCOUNTS, CONTRACT RIGHTS, DOCUMENTS, INSTRUMENTS, CHATTEL PAPER AND GUARANTIES AT ANY TIME HELD BY THE LENDER OR THE AGENT ON WHICH ANY COMPANY MAY IN ANY WAY BE LIABLE AND HEREBY RATIFIES AND CONFIRMS
WHATEVER THE LENDER OR THE AGENT MAY DO IN THIS REGARD; (C) NOTICE (INCLUDING ALL NOTICES REQUIRED UNDER THE UCC) PRIOR TO TAKING POSSESSION OR CONTROL OF THE COLLATERAL OR ANY BOND OR SECURITY WHICH MIGHT BE REQUIRED BY ANY COURT PRIOR TO ALLOWING THE LENDER OR THE AGENT TO EXERCISE ANY OF THEIR RESPECTIVE RIGHTS AND REMEDIES; (D) THE RIGHT TO NOTIFICATION OF DISPOSITION OF COLLATERAL UNDER SECTION 9-611 OF THE UCC (AND EACH COMPANY AGREES THAT IT HAS AUTHORIZED SUCH WAIVER IN ACCORDANCE WITH SECTION 9-624 OF THE UCC); (E) ALL RIGHTS TO REDEEM COLLATERAL UNDER SECTION 9-623 OF THE UCC (AND EACH COMPANY AGREES THAT IT HAS THE AUTHORIZED SUCH WAIVER IN ACCORDANCE WITH SECTION 9-624 OF THE UCC), (F) THE BENEFIT OF 

 

11

 

 

ALL VALUATION, APPRAISEMENT AND EXEMPTION LAWS AND ALL RIGHTS WAIVABLE UNDER ARTICLE 9 OF THE UNIFORM COMMERCIAL CODE; (G) ANY RIGHT ANY COMPANY MAY HAVE UPON PAYMENT IN FULL OF THE OBLIGATIONS UNDER THE TRANSACTION DOCUMENTS TO REQUIRE THE LENDER OR THE AGENT TO TERMINATE ITS SECURITY INTEREST IN THE COLLATERAL OR IN ANY OTHER PROPERTY OF ANY COMPANY UNTIL TERMINATION OF THE FINANCING AGREEMENT IN ACCORDANCE WITH ITS TERMS AND THE EXECUTION BY THE COMPANIES, AND BY ANY PERSON WHO PROVIDES FUNDS TO THE COMPANIES WHICH ARE USED IN WHOLE OR IN PART TO SATISFY THE OBLIGATIONS UNDER THE TRANSACTION DOCUMENTS, OF AN AGREEMENT INDEMNIFYING THE LENDERS AND THE AGENT FROM ANY LOSS OR DAMAGE ANY SUCH PARTY MAY INCUR AS THE RESULT OF DISHONORED CHECKS OR OTHER ITEMS OF PAYMENT RECEIVED BY SUCH PARTY FROM THE COMPANIES, OR ANY ACCOUNT DEBTOR AND APPLIED TO THE OBLIGATIONS AND RELEASING AND INDEMNIFYING, IN THE SAME
MANNER AS DESCRIBED IN SECTION 7 OF THIS AGREEMENT, THE RELEASEES FROM ALL CLAIMS ARISING ON OR BEFORE THE DATE OF SUCH TERMINATION STATEMENT; AND (H) NOTICE OF ACCEPTANCE HEREOF, AND THE COMPANIES EACH ACKNOWLEDGES THAT THE FOREGOING WAIVERS ARE A MATERIAL INDUCEMENT TO THE AGENT’S AND LENDERS’ ENTERING INTO THIS AGREEMENT AND THAT SUCH PARTIES ARE RELYING UPON THE FOREGOING WAIVERS IN THEIR FUTURE DEALINGS WITH THE COMPANIES.  EACH OF THE COMPANIES WARRANTS AND REPRESENTS THAT IT HAS REVIEWED THE FOREGOING WAIVERS WITH ITS LEGAL COUNSEL AND HAS KNOWINGLY AND VOLUNTARILY WAIVED ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.  IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

24.          Assignments; No Third Party Beneficiaries. This Agreement shall be binding upon and inure to the benefit of each of the Companies, the Lenders, the Agent and their respective successors and assigns; provided that no Company shall be entitled to delegate any of its duties hereunder and shall not assign any of its rights or remedies set forth in this Agreement without the prior written consent of the Agent in its sole discretion. No Person other than the parties hereto (and in the case of Section 7 hereof, the Releasees) shall have any rights hereunder or be entitled to rely on this Agreement and all third-party beneficiary rights (other than the rights of the Releasees under Section 7 hereof) are hereby expressly disclaimed.

25.          Final Agreement. This Agreement sets forth in full the terms of agreement between the parties hereto with respect to the forbearance, and is intended to be the full, complete, and exclusive contract governing those matters, superseding all other discussions, promises, representations, warranties, agreements, and understandings between the parties with respect thereto.  No term of this Agreement may be modified or amended, nor may any rights thereunder be waived, except in a writing signed by the party against whom enforcement of the modification, amendment, or waiver is sought.  Any waiver of any condition in, or breach of, any of the foregoing in a particular instance shall not operate as a waiver of other or subsequent conditions or breaches of the same or a
different kind.  The Lenders or the Agent’s exercise or failure to exercise any rights or remedies under any of the foregoing in a particular instance shall 

 

12

 

 

not operate as a waiver of its right to exercise the same or different rights and remedies in any other instances. There are no oral agreements among the parties hereto that are inconsistent with the terms of this Agreement.

[Remainder of Page Intentionally Left Blank; Signature Page Follows]

 

13

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed on the day and year first above written.

COMPANIES:

WAVE2WAVE COMMUNICATIONS, INC., 

a Delaware corporation

By: /s/ Eric Mann                                          
  

Name:  Eric Mann                                          
  

Title:    Chief Financial Officer                        

RNK, INC., a Massachusetts corporation

By: /s/ Eric Mann                                          
  

Name:  Eric Mann                                          
  

Title:    Chief Financial Officer                        

WAVE2WAVE VOIP COMMUNICATIONS, LLC, 

a Delaware limited liability company

By: /s/ Eric Mann                                          
  

Name:  Eric Mann                                          
  

Title:    Chief Financial Officer                        

WAVE2WAVE DATA COMMUNICATIONS, LLC, 

a Delaware limited liability company

By: /s/ Eric Mann                                          
  

Name:  Eric Mann                                          
  

Title:    Chief Financial Officer                        

WAVE2WAVE COMMUNICATIONS MID-WEST REGION, LLC, 

a Delaware limited liability company

By: /s/ Eric Mann                                          
  

Name:  Eric Mann                                          
  

Title:    Chief Financial Officer                        

 

 

RNK VA, LLC, a Virginia limited liability company

By: /s/ Eric Mann                                          
  

Name:  Eric Mann                                          
  

Title:    Treasurer                                          
    

AGENT:

VICTORY PARK MANAGEMENT, LLC

 

By: /s/ Matthew Ray                                        

Name:  Matthew Ray

Title:  Manager

 

LENDERS: 

VICTORY PARK CREDIT OPPORTUNITIES MASTER FUND, LTD.

By:  Victory Park Capital Advisors, LLC 

Its:  Investment Manager

 

By: /s/ Scott R. Zemnick                                  

Name:
Scott R. Zemnick

Title:
General Counsel

 

 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]