Document:

THIS
7% CONVERTIBLE NOTE (THIS “NOTE”) HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE, AND HAS BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A
VIEW TO, OR IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE EFFECTED WITHOUT AN EFFECTIVE
REGISTRATION STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL FOR THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE
SECURITIES ACT OR ANY APPLICABLE STATE SECURITIES LAWS.

 

THIS
NOTE DOES NOT REQUIRE PHYSICAL SURRENDER IN THE EVENT OF A PARTIAL REDEMPTION OR CONVERSION. AS A RESULT, FOLLOWING ANY REDEMPTION
OR CONVERSION OF ANY PORTION OF THIS NOTE, THE OUTSTANDING PRINCIPAL AMOUNT REPRESENTED BY THIS NOTE MAY BE LESS THAN THE PRINCIPAL
AMOUNT AND ACCRUED INTEREST SET FORTH BELOW.

 

SALEEN
AUTOMOTIVE, INC.

7%
CONVERTIBLE NOTE

 

Issuance
Date: March __, 2014

 

Original
Principal Amount: $_____________

 

FOR
VALUE RECEIVED, SALEEN AUTOMOTIVE, INC., a Nevada corporation (the “Company”), hereby promises to pay
to the order of ___________________, or registered assigns (the “Holder”), the amount set out above as the
Original Principal Amount (as reduced pursuant to the terms hereof pursuant to redemption, conversion or otherwise, the “Principal”)
when due, whether upon the Maturity Date (as defined below), acceleration, redemption or otherwise (in each case in accordance
with the terms hereof) and to pay interest (“Interest”) on any outstanding Principal at the applicable Interest
Rate (as defined below) from the date set forth above as the Issuance Date (the “Issuance Date”) until the
same becomes due and payable, upon the Maturity Date or acceleration, conversion, redemption or otherwise (in each case in accordance
with the terms hereof).

 

1.
General Terms.

 

(a)
Payment of Principal. The “Maturity Date” shall be March __, 2017.

 

(b)
Interest. Interest on the unpaid Principal shall accrue daily at the rate of seven percent (7%) per annum (the “Interest
Rate”) commencing on the Issuance Date and will be compounded on an annual basis; provided that from and after the occurrence
and during the continuance of an Event of Default (as defined below) Interest shall accrue on all of the unpaid Principal hereunder
at the lesser of the default rate of twenty-four percent (24%) per annum or the maximum rate permitted under applicable law (the
“Default Rate”).

 

(c)
Security. This Note shall not be secured by any collateral or any assets pledged to the Holder.

 

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2.
Events of Default.

 

(a)
Event of Default. An “Event of Default,” wherever used herein, means any one of the following events
(whatever the reason and whether it shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment,
decree or order of any court, or any order, rule or regulation of any administrative or governmental body):

 

(i)
The Company’s failure to pay to the Holder any amount of Principal, Interest or other amounts when and as due under this
Note (including, without limitation, the Company’s failure to pay any redemption payments or amounts hereunder);

 

(ii)
A Conversion Failure as defined in Section 3(b)(ii) hereof;

 

(iii)
The Company or any subsidiary of the Company shall commence, or there shall be commenced against the Company or any subsidiary
of the Company under any applicable bankruptcy or insolvency laws as now or hereafter in effect or any successor thereto, or the
Company or any subsidiary of the Company commences any other proceeding under any reorganization, arrangement, adjustment of debt,
relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect
relating to the Company or any subsidiary of the Company or there is commenced against the Company or any subsidiary of the Company
any such bankruptcy, insolvency or other proceeding which remains undismissed for a period of sixty-one (61) days; or the Company
or any subsidiary of the Company is adjudicated insolvent or bankrupt; or any order of relief or other order approving any such
case or proceeding is entered; or the Company or any subsidiary of the Company suffers any appointment of any custodian, private
or court appointed receiver or the like for it or any substantial part of its property which continues undischarged or unstayed
for a period of sixty-one (61) days; or the Company or any subsidiary of the Company makes a general assignment for the benefit
of creditors; or the Company or any subsidiary of the Company shall fail to pay, or shall state that it is unable to pay, or shall
be unable to pay, its debts generally as they become due; or the Company or any subsidiary of the Company shall call a meeting
of its creditors with a view to arranging a composition, adjustment or restructuring of its debts; or the Company or any subsidiary
of the Company shall by any act or failure to act expressly indicate its consent to, approval of or acquiescence in any of the
foregoing; or any corporate or other action is taken by the Company or any subsidiary of the Company for the purpose of effecting
any of the foregoing;

 

(iv)
The Company or any subsidiary of the Company shall default in any of its obligations under any other note or any mortgage, credit
agreement or other facility, indenture agreement, factoring agreement or other instrument under which there may be issued, or
by which there may be secured or evidenced any indebtedness for borrowed money or money due under any long term leasing or factoring
arrangement of the Company or any subsidiary of the Company in an amount exceeding $100,000, whether such indebtedness now exists
or shall hereafter be created;

 

(v)
The common stock of the Company (“Common Stock”) is suspended or delisted for trading on the Trading Market
(as defined below);

 

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(vi)
The Company loses its status as “DTC Eligible”; or

 

(vii)
The Company shall become late or delinquent in its Form 10-K, Form 10-Q and/or Form 8-K filings.

 

(b)
Cure Period. Upon receiving a written notice of the occurrence of an Event of Default, the Company shall have a grace period
of five (5) Business Days (as defined below) to cure such Event of Default.

 

(c)
Remedies upon Event of Default. In addition to any other remedies provided for herein, while an Event of Default occurs
and is continuing, the outstanding Principal, plus accrued but unpaid Interest and other amounts owing in respect thereof through
the date of acceleration, shall become, at the Holder’s election, immediately due and payable in cash at the Mandatory Default
Amount. The “Mandatory Default Amount” is equal to the greater of (i) one hundred twenty percent (120%) of
the outstanding Principal (plus all accrued and unpaid Interest, if any) and (ii) the product of (A) the highest closing price
for the five (5) days on which the Trading Market is open for business (a “Trading Day”) immediately preceding
the Holder’s acceleration and (B) a fraction, of which the numerator is the entire outstanding Principal, and of which the
denominator is the Conversion Price as of the date such ratio is being determined. After the occurrence and during the continuance
of any Event of Default, the interest rate on this Note shall accrue at the applicable Default Rate. Upon the payment in full
of the Mandatory Default Amount, the Holder shall promptly surrender this Note to or as directed by the Company. In connection
with such acceleration described herein, the Holder need not provide, and the Company hereby waives, any presentment, demand,
protest or other notice of any kind, and the Holder may immediately and without expiration of any grace period enforce any and
all of its rights and remedies hereunder and all other remedies available to it under applicable law. Such acceleration may be
rescinded and annulled by the Holder at any time prior to payment hereunder and the Holder shall have all rights as a holder of
this Note until such time, if any, as the Holder receives full payment pursuant to this Section 2(c). No such rescission
or annulment shall affect any subsequent Event of Default or impair any right consequent thereon.

 

3.
Conversion of Note. This Note shall be convertible into shares of Common Stock, on the terms and conditions set forth in
this Section 3.

 

(a)
Conversion Right. Subject to the provisions of Section 3(c), at any time or times on or after the Issuance Date,
the Holder shall be entitled to convert any portion of the outstanding and unpaid Conversion Amount (as defined below) into fully
paid and non-assessable shares of Common Stock in accordance with Section 3(b), at the Conversion Price (as defined below)
subject to the Conversion Minimum (as defined below). The number of shares of Common Stock issuable upon conversion of any Conversion
Amount pursuant to this Section 3(a) shall be equal to the quotient of dividing the Conversion Amount by the Conversion
Price (“Conversion Shares”). The Company shall not issue any fraction of a share of Common Stock upon any conversion.
If the issuance would result in the issuance of a fraction of a share of Common Stock, the Company shall round such fraction of
a share of Common Stock up to the nearest whole share. The Company shall pay any and all transfer agent fees, legal fees, costs
and any other fees or costs that may be incurred or charged in connection with the issuance of shares of Common Stock to the Holder
arising out of or relating to the conversion of this Note.

 

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(i)
“Conversion Amount” means the portion of the Principal and Interest to be converted, plus any penalties, redeemed
or otherwise with respect to which this determination is being made.

 

(ii)
“Conversion Price” shall equal the lesser of (A) $0.07 (subject to adjustment as provided in this Note) and
(B) seventy percent (70%) of the average of the three (3) lowest daily VWAPs occurring during the twenty (20) consecutive Trading
Days immediately preceding the applicable Conversion Date on which the Holder elects to convert all or part of this Note, subject
to adjustment as provided in this Note.

 

(iii)
“Conversion Minimum” shall, unless otherwise approved in writing by the Company, constitute any individual
conversion of at least an amount equal to $25,000 of the Principal.

 

(iv)
“Trading Market” means the following markets or exchanges on which the Common Stock is listed or quoted for
trading on the date in question: any national securities exchange, the Over the Counter Bulletin Board market or the OTC Markets
Group’s OTCQB or OTCQX markets.

 

(v)
“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) the
volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market; (b) if
the Common Stock is not then quoted for trading on the Trading Market and if prices for the Common Stock are then reported in
the “Pink Sheets” published by Pink Sheets, LLC, the OTC Market Group’s OTCPink market or a similar organization
or agency succeeding to their functions of reporting prices, the most recent bid price per share of the Common Stock so reported;
or (c) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected
in good faith by the Holder and reasonably acceptable to the Company.

 

(b)
Mechanics of Conversion.

 

(i)
Optional Conversion. To convert any Conversion Amount into shares of Common Stock on any date (a “Conversion Date”),
the Holder shall transmit by email, facsimile (or otherwise deliver), for receipt on or prior to 11:59 p.m., Pacific time, on
such date, a copy of an executed notice of conversion in the form attached hereto as Exhibit A (the “Conversion
Notice”) to the Company. On or before the third (3rd) Business Day following the date of receipt of a Conversion Notice,
the Company shall (A) if legends are not required to be placed on certificates of Common Stock pursuant to applicable securities
laws and provided that the Company’s transfer agent is participating in the Depository Trust Company’s (“DTC”)
Fast Automated Securities Transfer Program, credit such aggregate number of shares of Common Stock to which the Holder shall be
entitled to the Holder’s or its designee’s balance account with DTC, or (B) if the Company’s transfer agent
is not participating in the DTC Fast Automated Securities Transfer Program, issue and deliver to the address as specified in the
Conversion Notice, a certificate, registered in the name of the Holder or its designee, for the number of shares of Common Stock
to which the Holder shall be entitled which certificates shall not bear any restrictive legends unless required pursuant to applicable
securities laws. If this Note is physically surrendered for conversion and the outstanding Principal is greater than the Principal
portion of the Conversion Amount being converted, then the Company shall, upon request of the Holder, as soon as practicable and
in no event later than three (3) Business Days after receipt of this Note and at its own expense, issue and deliver to the holder
a new Note representing the outstanding Principal not converted. The individual, corporation, partnership, limited liability company,
limited liability partnership, trust, association, organization or other entity (each a “Person”) entitled
to receive the shares of Common Stock issuable upon a conversion of this Note shall be treated for all purposes as the record
holder or holders of such shares of Common Stock upon the transmission of a Conversion Notice. For the purposes hereof, the term
“Business Day” means any day except any Saturday, any Sunday, any day which shall be a federal legal holiday
in the United States or any day on which banking institutions in the State of California are authorized or required by law or
other governmental action to close.

 

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(ii)
Company’s Failure to Timely Convert. If within three (3) Business Days after the Company’s receipt of the facsimile
or email copy of a Conversion Notice, the Company shall fail to issue and deliver to Holder the number of shares of Common Stock
to which the Holder is entitled upon such Holder’s conversion of any Conversion Amount (a “Conversion Failure”),
the Principal shall increase by $3,000 per day until the Company issues and delivers a certificate to the Holder for the number
of shares of Common Stock to which the Holder is entitled upon such Holder’s conversion of any Conversion Amount. If the
Company fails to deliver shares in accordance with the timeframe stated in this section, resulting in a Conversion Failure, the
Holder, at any time prior to selling all of those shares, may rescind any portion, in whole or in part, of that particular conversion
attributable to the unsold shares and have the rescinded Conversion Amount returned to the Principal with the rescinded Conversion
Shares returned to the Company.

 

(iii)
DTC Eligibility. If the Company loses its status as “DTC Eligible” for any reason, the Conversion Price shall
thereafter be redefined to mean the lesser of (A) $0.07 (subject to adjustment as provided in this Note) and (B) fifty percent
(50%) of the lowest trade occurring during the twenty (20) consecutive Trading Days immediately preceding the applicable Conversion
Date on which the Holder elects to convert all or part of this Note.

 

(iv)
Book-Entry. Notwithstanding anything to the contrary set forth herein, upon conversion of any portion of this Note in accordance
with the terms hereof, the Holder shall not be required to physically surrender this Note to the Company unless (A) the full Conversion
Amount represented by this Note is being converted or (B) the Holder has provided the Company with prior written notice (which
notice may be included in a Conversion Notice) requesting reissuance of this Note upon physical surrender of this Note. The Holder
and the Company shall maintain records showing the Principal and Interest converted and the dates of such conversions or shall
use such other method, reasonably satisfactory to the Holder and the Company, so as not to require physical surrender of this
Note upon conversion.

 

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(c)
Limitations on Conversions. The Company shall not effect any conversions of this Note and the Holder shall not have the
right to convert any portion of this Note or receive shares of Common Stock as payment of interest hereunder to the extent that
after giving effect to such conversion or receipt of such Interest payment, the Holder, together with any Affiliate thereof and
any other person or entity acting as a group together with the Holder or any of the Holder’s Affiliates, would beneficially
own in excess of 4.99% of the number of shares of Common Stock outstanding immediately after giving effect to such conversion
or receipt of shares as payment of Interest (the “Beneficial Ownership Limitation”). For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of
shares of Common Stock issuable upon conversion of this Note with respect to which such determination is being made, but shall
exclude the number of shares of Common Stock which are issuable upon (A) conversion of the remaining, unconverted principal amount
of this Note beneficially owned by the Holder or any of its Affiliates and (B) exercise or conversion of the unexercised or unconverted
portion of any other securities of the Company subject to a limitation on conversion or exercise analogous to the limitation contained
herein beneficially owned by the Holder or any of its Affiliates. Except as set forth in the preceding sentence, for purposes
of this Section 3(c), beneficial ownership shall be calculated in accordance with Section 13(d) of the Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder (the “Exchange Act”). For purposes
of this section, in determining the number of outstanding shares of Common Stock, the Holder may rely on the number of outstanding
shares of Common Stock as stated in the most recent of the following: (A) the Company’s most recent periodic or annual report,
as the case may be; (B) a more recent public announcement by the Company; or (C) a more recent notice by the Company or the Company’s
transfer agent setting forth the number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the
Company shall within three Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then
outstanding. Since the Holder will not be obligated to report to the Company the number of shares of Common Stock it may hold
at the time of a conversion hereunder, unless the conversion at issue would result in the issuance of shares of Common Stock in
excess of 4.99% of the then outstanding shares of Common Stock without regard to any other shares which may be beneficially owned
by the Holder or an Affiliate thereof, the Holder shall have the authority and obligation to determine whether the restriction
contained in this section will limit any particular conversion hereunder and to the extent that the Holder determines that the
limitation contained in this section applies, the determination of which portion of the principal amount of this Note is convertible
shall be the responsibility and obligation of the Holder. If the Holder has delivered a Conversion Notice for a principal amount
of this Note that, without regard to any other shares that the Holder or its Affiliates may beneficially own, would result in
the issuance in excess of the permitted amount hereunder, the Company shall notify the Holder of this fact and shall honor the
conversion for the maximum principal amount permitted to be converted on such Conversion Date in accordance with Section 3(a)
and, any principal amount tendered for conversion in excess of the permitted amount hereunder shall remain outstanding under
this Note. By written notice to the Company, the Holder may at any time and from time to time increase or decrease the Beneficial
Ownership Limitation to any other percentage specified in such notice (or specify that the Beneficial Ownership Limitation shall
no longer be applicable), provided, however, that (A) any such increase (or inapplicability) shall not be effective until the
sixty-fifth (65th) day after such notice is delivered to the Company, and (B) any such increase or decrease shall apply only to
the Holder and not to any other holder of Notes. The provisions of this section shall be construed and implemented in a manner
otherwise than in strict conformity with the terms of this section to correct this section (or any portion hereof) which may be
defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements
necessary or desirable to properly give effect to such limitation. The limitations contained in this section shall apply to a
successor holder of this Note.

 

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(d)
Other Provisions.

 

(i)
Share Reservation. The Company shall at all times reserve and keep available out of its authorized Common Stock the full
number of shares of Common Stock issuable upon conversion of all outstanding amounts under this Note; and within five (5) Business
Days following the receipt by the Company of a Holder’s notice that such minimum number of underlying shares of Common Stock
is not so reserved, the Company shall promptly reserve a sufficient number of shares of Common Stock to comply with such requirement.

 

(ii)
Prepayment. At any time after the twelve (12)-month period immediately following the Issuance Date, the Company shall have
the option, upon ten (10) Business Days’ notice to Holder, to pre-pay the entire remaining outstanding principal amount
of this Note in cash, provided that (A) the Company shall pay the Holder one hundred fifty percent (150%) of the Principal plus
Interest outstanding in repayment hereof, (B) such amount must be paid in cash on the next Business Day following such ten (10)
Business Day notice period, and (C) the Holder may still convert this Note pursuant to the terms hereof at all times until such
prepayment amount has been received in full. Except as set forth in this section the Company may not prepay this Note in whole
or in part.

 

(iii)
Calculations. All calculations under this Section 3 shall be rounded up to the nearest $0.01 or whole share.

 

(iv)
Remedies. Nothing herein shall limit a Holder’s right to pursue actual damages or declare an Event of Default pursuant
to Section 2 herein for the Company’s failure to deliver certificates representing shares of Common Stock upon conversion
within the period specified herein and such Holder shall have the right to pursue all remedies available to it at law or in equity
including, without limitation, a decree of specific performance and/or injunctive relief, in each case without the need to post
a bond or provide other security. The exercise of any such rights shall not prohibit the Holder from seeking to enforce damages
pursuant to any other section hereof or under applicable law.

 

4.
Adjustments to Conversion Price; Fundamental Transactions. The Conversion Price and the number and kind of securities issuable
upon conversion of this Note shall be subject to adjustment from time to time as set forth in this Section 4.

 

 (a) Stock Dividends and Splits. If at any time while this Note is outstanding the Company (i) declares or pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock (or securities convertible into or exercisable or exchangeable for capital stock) that is payable in shares of Common Stock, (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including, without limitation, by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of Common Stock any shares of capital stock of the Company (including, without limitation, in connection with any merger or consolidation), then in each such case the Conversion Price then in effect shall be adjusted by multiplying such Conversion Price by a fraction of which (A) the numerator shall be the number of shares of Common Stock outstanding immediately before such event, and (B) the denominator shall be the number of shares of Common Stock outstanding immediately after such event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for such dividend or distribution, and any adjustment made pursuant to clauses (ii), (iii) or (iv) of this paragraph shall become effective immediately after the effective date of such subdivision, combination or reclassification.

 

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(b)
Pro Rata Distributions. Subject to Section 4(d) below, if at any time while this Note is outstanding the
Company declares or pays any dividend or otherwise distributes any of its assets (including, without limitation, cash, properties,
evidences of indebtedness, securities (including any options or other convertible securities but excluding a distribution of Common
Stock covered by Section 4(a) above or Purchase Rights covered by Section 4(d) below) or options or rights to acquire
any such assets) (in each case, “Distributed Property”) to all holders of Common Stock pro rata (and
not to all Holders in their capacity as holders of Notes), whether by way of dividend, return of capital, spin-off, reclassification,
corporate rearrangement, scheme of arrangement or other similar transaction, then in each such case the Conversion Price in effect
immediately prior to the close of business on the record date for such dividend or distribution shall be reduced, effective as
of the close of business on such record date, to a price determined by multiplying such Conversion Price by a fraction of which
(i) the denominator shall be the closing price of Common Stock on the Trading Market on such record date (the “Market
Price”), and (ii) the numerator shall be such Market Price minus the value of the Distributed Property on such date
applicable to one outstanding share of Common Stock, as determined by the Company’s independent certified public accounting
firm that regularly examines the financial statements of the Company.

 

(c)
Rights Offerings Below Market. Notwithstanding Section 4(c) above, if at any time while this Note is outstanding
the Company grants, issues or sells pro rata to all holders of its outstanding shares of Common Stock, any options, convertible
securities or other rights (the “Purchase Rights”) entitling them to directly or indirectly subscribe for or
purchase shares of Common Stock at an effective price per share less than the Market Price on the record date of such grant, issuance
or sale, then in each such case the Conversion Price in effect immediately prior to the close of business on such record date
shall be reduced, effective as of the close of business on such record date, to a price determined by multiplying such Conversion
Price by a fraction of which (i) the numerator shall be the number of shares of Common Stock outstanding as of the close of business
on such record date plus the number of shares of Common Stock which the aggregate offering price of the total number of shares
so offered for subscription or purchase (including and assuming receipt by the Company in full of all consideration payable upon
both issuance and exercise of such Purchase Rights) would purchase at such Market Price, and (ii) the denominator shall be the
number of shares of Common Stock outstanding as of the close of business on such record date plus the total number of additional
shares of Common Stock so offered for subscription or purchase; provided, that in lieu of receiving such adjustment to
the Conversion Price, the Holder shall have the option, upon written notice to the Company within thirty (30) days following its
receipt of the notice of such adjustment, to elect to acquire, upon any conversion of this Note and in accordance with the terms
applicable to the issuance of such Purchase Rights, the aggregate Purchase Rights which the Holder would have acquired if the
Holder had converted such portion of this Note being converted (without regard to any limitations on ownership or conversion and
regardless of whether this Note was then convertible) immediately prior to such record date. To the extent that shares of Common
Stock have not been delivered pursuant to such Purchase Rights specified in this section upon the expiration or termination of
such Purchase Rights, the Conversion Price shall be readjusted to the Conversion Price which would then be in effect had the adjustment
made upon the issuance of such Purchase Rights been made on the basis of delivery of only the number of shares of Common Stock
actually delivered. In determining whether any Purchase Rights entitle the holder thereof to subscribe for or purchase shares
of Common Stock at less than such Market Price, and in determining the aggregate offering price of such shares of Common Stock,
there shall be taken into account any consideration received for such Purchase Rights, the value of such consideration (if other
than cash) to be determined in good faith by the Company’s Board of Directors.

 

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(d)
Fundamental Transactions. If at any time while this Note is outstanding, (i) the Company effects any merger or consolidation
of the Company with or into another Person, (ii) the Company effects any sale of all or substantially all of its assets in one
or a series of related transactions, (iii) any tender offer or exchange offer (whether by the Company or another Person) is completed
pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property,
or (iv) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which the Common
Stock is effectively converted into or exchanged for other securities, cash or property (each, a “Fundamental Transaction”),
then the Holder shall have the right thereafter to receive, upon any conversion of this Note, for each Conversion Share that would
have been issuable upon such conversion immediately prior to the occurrence of such Fundamental Transaction, the same amount and
kind of securities, cash and property as the Holder would have been entitled to receive upon the occurrence of such Fundamental
Transaction if the Holder had been the record holder of one Conversion Share immediately prior to such Fundamental Transaction
(without regard to any limitations or restrictions on conversion or acquisition of Conversion Shares and whether or not this Note
was then convertible) (the “Alternate Consideration”), and the Conversion Price shall be appropriately and
equitably adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect
of one share of Common Stock in such Fundamental Transaction relative to the then Conversion Price. The Company shall apportion
the Conversion Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components
of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received
in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon
any conversion of this Note following such Fundamental Transaction. In case of any such Fundamental Transaction, any successor
to the Company, acquirer or surviving entity (if other than the Company) shall expressly assume the due and punctual observance
and performance of each and every covenant, obligation, liability and condition under this Note to be performed and observed by
the Company, subject to such modifications as may be reasonably deemed appropriate (as determined in good faith by resolution
of the Board of Directors of the Company) in order to provide for adjustments of the number and kind of Conversion Shares for
which this Note is convertible which shall be as nearly equivalent as practicable to the adjustments provided for in this section.
Such assumption shall be pursuant to a written agreement in form and substance reasonably satisfactory to the Holder. At the Holder’s
request, any successor to the Company, acquirer or surviving entity in such Fundamental Transaction shall issue to the Holder
a new Note from such entity substantially similar in form and substance to this Note and consistent with the foregoing provisions,
which new Note shall be reasonably satisfactory to the Holder and include, without limitation, (A) the outstanding Principal and
Interest owed to the Holder under this Note, (B) an interest rate equal to the Interest Rate, (C) similar ranking to this Note,
and (D) the Holder’s right to convert the new Note into Alternate Consideration. The terms of any agreement pursuant to
which a Fundamental Transaction is effected shall include terms requiring any such successor, acquirer or surviving entity to
comply with the provisions of this section and ensuring that this Note (or any such replacement security) will be similarly adjusted
upon any subsequent transaction analogous to a Fundamental Transaction. Notwithstanding anything to the contrary contained herein,
if a Fundamental Transaction (X) is an all cash transaction, (Y) constitutes or results in a “Rule 13e-3 transaction”
as defined in Rule 13e-3 under the Exchange Act (going private transaction), or (Z) otherwise results in the successor, surviving
or acquiring entity not being traded on a national securities exchange, the Nasdaq Global Select Market, the Nasdaq Global Market
or the Nasdaq Capital Market, then upon the written request of the Holder, delivered before the sixtieth (60th) day after such
Fundamental Transaction, the Company (or any such successor, acquirer or surviving entity) shall redeem this Note from the Holder
for a redemption price, payable in cash within five (5) Business Days after such request (or, if later, on the effective date
of such Fundamental Transaction), equal to the value of this Note as determined using the Black-Scholes Option Pricing Model via
Bloomberg. The provisions of this section shall similarly apply to successive Fundamental Transactions and shall be applied without
regard to any limitations of this Note.

 

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5.
Reissuance of this Note.

 

(a)
Assignability. The Company may not assign this Note. This Note will be binding upon the Company and its successors and
will inure to the benefit of the Holder and its successors and assigns and may be assigned by the Holder to anyone of its choosing
without the Company’s approval.

 

(b)
Lost, Stolen or Mutilated Note. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss,
theft, destruction or mutilation of this Note, and, in the case of loss, theft or destruction, of an indemnification undertaking
by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Note, the
Company shall execute and deliver to the Holder a new Note representing the outstanding Principal.

 

6.
Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms hereof
must be in writing and will be deemed to have been delivered: (a) upon receipt, when delivered personally; (b) upon receipt, when
sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending
party); (c) upon receipt, when sent by email; or (d) one (1) Business Day after deposit with a nationally recognized overnight
delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such
communications shall be those set forth in the communications and documents that each party has provided the other immediately
preceding the issuance of this Note or at such other address and/or facsimile number and/or to the attention of such other person
as the recipient party has specified by written notice given to each other party three (3) Business Days prior to the effectiveness
of such change. Written confirmation of receipt (x) given by the recipient of such notice, consent, waiver or other communication,
(y) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (z) provided by a nationally recognized overnight delivery service,
shall be rebuttable evidence of personal service, receipt by facsimile or receipt from a nationally recognized overnight delivery
service in accordance with clause (x), (y) or (z) above, respectively.

 

    	10

    	 

    

 

The
addresses for such communications shall be:

 

	 	If to the Company,
    to:	 	 
	 	 	 	 
	 	Saleen Automotive,
    Inc.
 2735 Wardlow Road
 Corona, CA 92882
 Attn: Chief Financial Officer	 	 
	 	Facsimile:	 	 
	 	Email: dfiene@saleen.com	 	 
	 	 	 	 
	 	If to the Holder:	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	Attn:		 	 
	 	Facsimile:		 	 
	 	Email:		 	

 

7.
Representations and Warranties.

 

(a)
Company. In connection with the transactions provided for herein, the Company hereby represents and warrants to the Holder
that all corporate action has been taken on the part of the Company necessary for the authorization, execution and delivery of
this Note. The Company has taken all corporate action required to make all the obligations of the Company reflected herein the
valid and enforceable obligations they purport to be, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization
or similar laws relating to or affecting the enforcement of creditors’ rights and (ii) laws relating to availability of
specific performance, injunctive relief or other equitable remedies.

 

(b)
Holder. In connection with the transactions provided for herein, the Holder hereby represents and warrants to the Company
that: (i) this Note constitutes the Holder’s valid and legally binding obligation, enforceable in accordance with its terms,
except as may be limited by (A) applicable bankruptcy, insolvency, reorganization or similar laws relating to or affecting the
enforcement of creditors’ rights and (B) laws relating to availability of specific performance, injunctive relief or other
equitable remedies; (ii) the Note will be acquired for investment for the Holder’s own account, not as a nominee or agent,
and not with a view to the resale or distribution of any part thereof; (iii) the Holder is an investor in securities of companies
in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment, and
has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the
investment in this Note; and (iv) the Holder is an “accredited investor” within the meaning of Rule 501 of Regulation
D, as presently in effect, as promulgated by the Securities and Exchange Commission under the Securities Act.

 

    	11

    	 

    

 

8.
Governing Law and Venue. All questions concerning the construction, validity, enforcement and interpretation of this Note
shall be governed by and construed and enforced in accordance with the internal laws of the State of California, without regard
to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement
and defense of the transactions contemplated by this Note (whether brought against a party hereto or its respective Affiliates,
directors, officers, stockholders, employees or agents) shall be commenced in the state and federal courts sitting in the County
of Los Angeles (the “Los Angeles Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction
of the Los Angeles Courts 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 such Los Angeles Courts, or such Los Angeles Courts are improper or inconvenient
venue for such proceeding. 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 via registered or certified mail or overnight delivery (with
evidence of delivery) to such party at the address in effect for notices to it under this Note 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 other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to
the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating
to this Note or the transactions contemplated hereby. If either party shall commence an action or proceeding to enforce any provisions
of this Note, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’
fees and other costs and expenses reasonably incurred in the investigation, preparation and prosecution of such action or proceeding.

 

9.
Waiver. Any waiver by the Company or the Holder of a breach of any provision of this Note shall not operate as or be construed
to be a waiver of any other breach of such provision or of any breach of any other provision of this Note. The failure of the
Company or the Holder to insist upon strict adherence to any term of this Note on one or more occasions shall not be considered
a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other term of this
Note. Any waiver by the Company or the Holder must be in writing.

 

10.
Severability. If any provision of this Note is invalid, illegal or unenforceable, the balance of this Note shall remain
in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable to all
other Persons and circumstances. If it shall be found that any Interest or other amount deemed Interest due hereunder violates
the applicable law governing usury, the applicable rate of Interest due hereunder shall automatically be lowered to equal the
maximum rate of interest permitted under applicable law.

 

11.
Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day.

 

[Signature
Page Follows]

 

    	12

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Note, effective as of the Issuance Date.

 

	 	COMPANY:
	 	 	 
	 	SALEEN
    AUTOMOTIVE, INC.
	 	 	 
	 	By:	 
	 	Name::	Steve
    Saleen
	 	Its:	Chief
    Executive Officer
	 	 	 
	 	HOLDER:
	 	 	 
	 	 	 
	 	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

 

    	 

    	 

    

 

EXHIBIT
A

 

NOTICE
OF CONVERSION

 

The
undersigned hereby elects to convert principal under the 7% Convertible Note (the “Note”) due March __, 2017
of Saleen Automotive, Inc., a Nevada corporation (the “Company”), into shares of common stock (“Common
Stock”) of the Company according to the conditions hereof, as of the date written below.

 

By
the delivery of this Notice of Conversion, the undersigned represents and warrants to the Company that (check one):

 

________
its ownership of the Common Stock does not exceed the amounts specified under Section 3(c) of the Note, as determined in
accordance with Section 13(d) of the Exchange Act.

 

________
immediately prior to giving effect to this Notice of Conversion, it owns more than 4.99% of the outstanding shares of Common Stock,
as determined in accordance with Section 3(c) of the Note.

 

The
undersigned agrees to comply with the prospectus delivery requirements under the applicable securities laws in connection with
any transfer of the aforesaid shares of Common Stock pursuant to any prospectus.

 

	Conversion
    calculations: 	Date
    to Effect Conversion:	 
	 	 	 
	 	Principal
    to be Converted:	 
	 	 	 
	 	Interest
    Accrued on Account	 
	 	of
    Conversion at Issue:	 
	 	 	 
	 	Number
    of shares of Common Stock to be issued (not less than $25,000 of the Principal and any accrued but unpaid interest thereon):	 

 

	 	Signature:	 
	 	 	 
	 	Name:	 
	 	 	 
	 	Address for Delivery of Common Stock Certificates:exh_101.htm

Exhibit 10.1

 

	
MORGAN STANLEY SENIOR FUNDING, INC.

1585 Broadway

New York, New York  10036

 

	
WELLS FARGO SECURITIES, LLC

WF INVESTMENT HOLDINGS, LLC

550 South Tryon Street,

Charlotte, North Carolina 28202

	
THE ROYAL BANK OF SCOTLAND PLC AND

RBS SECURITIES INC.

600 Washington Boulevard

Stamford, CT 06901

 

June 29, 2014

 

Consolidated Communications, Inc.

121 South 17th Street

Mattoon, Illinois 61938

Attention:  Steve Childers, Chief Financial Officer

 

Project Sky

Commitment Letter

$140 million Senior Unsecured Bridge Facility

 

Ladies and Gentlemen:

 

Consolidated Communications, Inc. (“you” or the “Borrower”), a wholly-owned subsidiary of Consolidated Communications Holdings, Inc. (“Holdings”), have advised Morgan Stanley Senior Funding, Inc. (“MSSF”), WF Investment Holdings, LLC (“WFIH”), Wells Fargo Securities, LLC (“WFS”) The Royal Bank of Scotland plc (“RBS”) and RBS Securities Inc. (“RBSSI” and together with MSSF, WFIH, WFS and RBS, “we,” “us” or the “Commitment Parties”) that you intend  to acquire (the “Acquisition”) 100% of the outstanding capital stock of a company previously identified to us and code-named Sky (the “Target”) pursuant to an agreement and plan of merger (including all annexes and exhibits thereto, as amended, modified and supplemented in accordance with the terms hereof, the “Acquisition Agreement”) among Holdings, a merger subsidiary of Holdings and the Target (the “Seller”).  All references to “dollars” or “$” in this Commitment Letter (as defined below) are references to United States dollars.

 

  

  

  

We understand that the total funding required to effect the Acquisition, to repay and redeem existing indebtedness of the Target and its subsidiaries (the “Refinancing”) and to pay the fees and expenses incurred in connection therewith shall be $370  million and shall be provided from (i) the issuance of equity interests of Holdings to the selling shareholders of the Target as partial consideration for the Acquisition (the “Equity Issuance”), (ii) the issuance (either by private placement or an underwritten public sale) by the Borrower of senior unsecured notes, which may be “additional notes” under the Existing Indenture (as defined in Exhibit A) (such additional notes, the “Notes”) or, if and to the extent that the Borrower is unable to issue the Notes, the incurrence of senior unsecured bridge loans (the “Bridge Loans”) under a senior unsecured bridge facility (the “Bridge Facility”), in each case, in an aggregate principal amount that will yield up to $140 million in gross proceeds to the Borrower, as described in the summary of terms and conditions attached hereto as Exhibit A (the “Bridge Term Sheet”) and (iii) cash on-hand of the Borrower.  The Acquisition, the entering into of this Commitment Letter (as defined below), the Equity Issuance, the issuance of the Notes and/or the borrowings under the Bridge Facility, the Refinancing and the related transactions contemplated by the foregoing as well as the payment of fees, commissions an expenses in connection with each of the foregoing, are collectively referred to as the “Transactions.”  No other financing will be required for the Transactions.

 

1. Commitments.  In connection with the Transactions, each of MSSF, WFIH and RBS is pleased to advise you of its several but not joint commitment to provide (i) in the case of MSSF, 60% of entire aggregate principal amount of the Bridge Facility, (ii) in the case of WFIH, 25% of entire aggregate principal amount of the Bridge Facility and (iii) in the case of RBS, 15% of entire aggregate principal amount of the Bridge Facility, in each case, subject to and on the terms and conditions set forth herein and in the Bridge Term Sheet and the additional conditions attached as Exhibit B (the “Conditions Term Sheet;” and together with the Bridge Term Sheet, the “Term Sheets” and together with this agreement and the Fee Letter (as defined below), the “Commitment Letter”).  It is agreed that each of MSSF, WFS and RBSSI shall act as a joint lead arranger and joint book-runner for the Bridge Facility (in such capacity, the “Lead Arrangers”). It is further agreed that MSSF will act as syndication agent for the Bridge Facility and as administrative agent for the Bridge Facility (in such capacity, the “Administrative Agent”).  It is further agreed that no additional advisors, agents, co-agents, arrangers or bookmanagers will be appointed and no Lender (as defined below) will receive compensation with respect to the Bridge Facility outside the terms contained in this Commitment Letter and the fee letter (the “Fee Letter”) executed simultaneously herewith in order to obtain its commitment to participate in the Bridge Facility, in each case unless you and we so agree. Notwithstanding the foregoing, it is agreed that MSSF will have “left” placement in any and all marketing materials or other documentation used in connection with the Bridge Facility and will have the leading roles and responsibilities conventionally associated with such “left” placement.

 

You agree that the closing date of the Transactions including the concurrent closing of the Bridge Facility and, if applicable, the issuance of the Notes (the “Closing Date”) shall be a date mutually agreed upon between you and us, but in any event shall not occur until all of the terms and conditions in this Commitment Letter have been satisfied.  The terms of this commitment are not limited to those set forth in this Section 1 of this Commitment Letter.  Those matters that are not covered or made clear in this Commitment Letter are subject to mutual agreement of the parties.  Notwithstanding anything to the contrary set forth in this Commitment Letter, the commitment and other obligations of the Commitment Parties hereunder are subject solely to the satisfaction of the following conditions in a manner acceptable to the Commitment Parties:

 

(a) the negotiation, execution and delivery of definitive loan documentation for the Bridge Facility (the “Bridge Documentation” or the “Financing Documentation”), in each case in form and substance satisfactory to the Commitment Parties and their counsel (but no less favorable than the terms and conditions set forth in the Term Sheets), including without limitation credit agreements, guaranties and other documentation reflecting, among other things, the terms and conditions set forth herein and in the Term Sheets;

 

  

-2-

  

(b) since December 31, 2013, the absence of any change, effect, event, occurrence, state of facts, or development that has had or would reasonably be expected to have, individually or in the aggregate, a Target Material Adverse Effect or a Holdings Material Adverse Effect (each as defined below);

 

(c) the Closing Date shall not occur less than 20 calendar-days after both receipt of the Ratings (as defined below) and delivery to the Lead Arrangers of the final confidential information memorandum referred to herein; and

 

(d) the satisfaction of each of the other conditions set forth (i) under the heading “Conditions Precedent to Funding” on Exhibit A to this Commitment Letter and (ii) on Exhibit B to this Commitment Letter.

 

Notwithstanding anything in this Commitment Letter, the Fee Letter or any other letter agreement or other undertaking concerning the financing of the Transactions to the contrary, (i) the only representations relating to the Borrower, the Target and their respective subsidiaries and businesses the accuracy of which shall be a condition to availability of the Bridge Facility on the Closing Date shall be (A) such of the representations made by the Target in the Acquisition Agreement that are material to the interests of the Lenders, but only to the extent that you have the right to terminate your obligations under the Acquisition Agreement as a result of a breach of such representations in the Acquisition Agreement (the “Acquisition Agreement Representations”), and (B) the Specified Representations (as defined below) and (ii) the terms of the Financing Documentation shall be in a form such that they do not impair availability of the Bridge Facility on the Closing Date if the conditions set forth in this Commitment Letter are satisfied.  For purposes hereof, “Specified Representations” means the representations and warranties relating as to due organization, solvency, corporate power and authority, the due authorization, execution, delivery and enforceability of the Financing Documentation, the Financing Documentation not conflicting with charter documents, law or material contracts, Federal Reserve margin regulations, Investment Company Act, Patriot Act, FCPA, sanctions, anti-money laundering laws, status of the Bridge Facility as senior debt and “designated senior debt.”

 

  

-3-

  

The term “Target Material Adverse Effect” shall mean (i) a material adverse effect on the business, results of operations or financial condition of the Target and its Subsidiaries taken as a whole or (ii) a material adverse effect on the Target’s ability to consummate the Transactions on a timely basis; provided, however, that in determining whether a Target Material Adverse Effect has occurred, there shall be excluded any effect on the Target or its Subsidiaries relating to or arising in connection with (A) any adverse change, effect, event or occurrence, state of facts or developments to the extent the public announcement or the pendency of the Acquisition Agreement or the transactions contemplated thereby or any actions required to be taken (or refrained from being taken) in compliance therewith or otherwise with the consent of the other party thereto, including the impact thereof on the relationships of the Target or any of its Subsidiaries with customers, suppliers, distributors, consultants, employees or independent contractors or other third parties with whom the Target or any of its Subsidiaries has any relationship and including any litigation brought by any shareholder of the Target in connection with the Transactions, (B) any failure by the Target to meet any projections or forecasts for any period ending (or for which revenues or earnings are released) on or after the date hereof (it being understood that this clause (B) does not and shall not be deemed to apply to the underlying cause or causes of any such failure), (C) any change in federal, state, non-U.S. or local law, regulations, policies or procedures, or interpretations thereof, generally accepted accounting principles (“GAAP”) or regulatory accounting requirements applicable or potentially applicable to the industries in which the Target or its Subsidiaries operate, (D) changes generally affecting the industries in which the Target or its Subsidiaries operate that are not specifically related to the Target and its Subsidiaries and do not have a materially disproportionate adverse effect on the Target and its Subsidiaries, taken as a whole, (E) changes in economic conditions (including changes in the prevailing interest rates) in the United States, in any region thereof, or in any non-U.S. or global economy that do not have a materially disproportionate adverse effect on the Target and its Subsidiaries, taken as a whole or (F) any attack on, or by, outbreak or escalation of hostilities or acts of terrorism involving, the United States, or any declaration of war by the United States Congress or any hurricane or other natural disaster.

 

The term “Holdings Material Adverse Effect” shall mean a material adverse effect on the business, results of operations or financial condition of Holdings and its Subsidiaries taken as a whole or (ii) a material adverse effect on Holdings’ or Merger Sub’s ability to consummate the Transactions on a timely basis; provided, however, that in determining whether a Holdings Material Adverse Effect has occurred, there shall be excluded any effect on the Holdings or its Subsidiaries relating to or arising in connection with (A) any adverse change, effect, event or occurrence, state of facts or developments to the extent the public announcement or the pendency of the Acquisition Agreement or the transactions contemplated thereby or any actions required to be taken (or refrained from being taken) in compliance therewith or otherwise with the consent of the other party thereto, including the impact thereof on the relationships of Holdings or any of its Subsidiaries with customers, suppliers, distributors, consultants, employees or independent contractors or other third parties with whom Holdings or any of its Subsidiaries has any relationship and including any litigation brought by any shareholder of the Target or Holdings in connection with the Transactions, (B) any failure by Holdings to meet any projections or forecasts for any period ending (or for which revenues or earnings are released) on or after the date hereof (it being understood that this clause (B) does not and shall not be deemed to apply to the underlying cause or causes of any such failure), (C) any change in federal, state, non-U.S. or local law, regulations, policies or procedures, or interpretations thereof, GAAP or regulatory accounting requirements applicable or potentially applicable to the industries in which Holdings or its Subsidiaries operate, (D) changes generally affecting the industries in which Holdings or its Subsidiaries operate that are not specifically related to Holdings and its Subsidiaries and do not have a materially disproportionate adverse effect on the Holdings and its Subsidiaries, taken as a whole, (E) changes in economic conditions (including changes in the prevailing interest rates) in the United States, in any region thereof, or in any non-U.S. or global economy that do not have a materially disproportionate adverse effect on the Holdings and its Subsidiaries, taken as a whole or (F) any attack on, or by, outbreak or escalation of hostilities or acts of terrorism involving, the United States, or any declaration of war by the United States Congress or any hurricane or other natural disaster.

 

  

-4-

  

As used in the preceding two paragraphs, (i) the term “Subsidiary” shall mean, with respect to any person, any corporation, partnership, joint venture, limited liability company or any other entity that is consolidated with such person for financial reporting purposes, and (ii) the term “Merger Sub” shall refer to Sky Merger Sub, a Minnesota corporation and a wholly owned subsidiary of Holdings.

 

2. Syndication.  The Lead Arrangers reserve the right, prior to or after execution of the definitive credit documentation for the Bridge Facility, to syndicate all or part of the Commitment Parties’ commitments for the Bridge Facility to one or more financial institutions or institutional lenders in consultation with you, and the commitments of the Commitment Parties hereunder in respect of the Bridge Facility shall be reduced as and when commitments are received from such other lenders in respect of the Bridge Facility.  Without limiting your obligations to assist with syndication efforts as set forth herein, the Commitment Parties agree that completion of such syndications is not a condition to its commitments hereunder.

 

The Lead Arrangers intend to commence syndication efforts promptly after the execution of this Commitment Letter by you and you agree to actively assist the Lead Arrangers in achieving a syndication in respect of the Bridge Facility that is satisfactory to the Lead Arrangers.  Such syndication will be accomplished by a variety of means, including direct contact during the syndication for the Bridge Facility between senior management and advisors of the Target and the proposed syndicate members for the Bridge Facility (the “Lenders”).  The Lead Arrangers will manage all aspects of the syndication in consultation with you, including the timing, scope and identity of potential lenders, any agency or other title designations or roles awarded to any potential lender, any compensation provided to each potential lender from the amount paid to the Lead Arrangers pursuant to this Commitment Letter and the Fee Letter and the final allocation of the commitments in respect of the Bridge Facility among the Lenders.

 

To assist the Commitment Parties in their syndication efforts, you hereby covenant and agree:

 

(a) to provide and cause your advisors and representatives to provide, and use your commercially reasonable efforts to cause the Target, its subsidiaries, its advisors, and its representatives to provide, the Lead Arrangers and the other relevant syndicate members upon request with all information reasonably requested by the Lead Arrangers, including but not limited to the Projections (as defined below) and financial and other information, reports, memoranda and evaluations prepared by, on behalf or at the direction of you, the Target or its subsidiaries or your or their respective advisors;

 

(b) to prepare one or more confidential information memoranda (including public and private versions thereof) and other materials, in each case in form and substance customary for transactions of this type and otherwise satisfactory to the Lead Arrangers, to be used in connection with the syndication of the Bridge Facility;

 

(c) to use your commercially reasonable efforts to ensure that the syndication efforts of the Lead Arrangers benefit materially from your existing lending and banking relationships and the existing lending and banking relationships of the Target and its subsidiaries;

 

  

-5-

  

(d) to use your commercially reasonable efforts to obtain monitored public corporate credit or family ratings of the Borrower after giving effect to the Transactions and ratings for each of the Bridge Facility and the Notes, as the case may be, in each case, from Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. (“S&P”) (collectively, the “Ratings”);

 

(e) to ensure that, prior to and until the completion of the syndication of the Bridge Facility (as determined by the Commitment Parties and notified in writing to you), there are no competing issuances or offerings of debt securities, or placement or arrangement of any commercial bank or other debt facilities or securitizations (including any renewals or refinancing thereof) by Holdings, the Borrower, the Target or any of your or their respective subsidiaries or affiliates, being discussed, attempted, offered, placed or arranged (other than the Notes), including renewals or refinancing of any existing debt without the consent of the Lead Arrangers (it being understood that this condition shall survive the Closing Date as a covenant until the completion of the syndication of the Bridge Facility (as determined by the Commitment Parties and notified in writing to you)); and

 

(f) to otherwise assist the Lead Arrangers in their syndication efforts, including by making available your and using commercially reasonable efforts to make available the Target’s officers, representatives and advisors, in each case from time to time and to attend and make presentations regarding the business and prospects of the Borrower at one or more meetings of Lenders.

 

3. Information.  You represent and warrant that (a) all information (other than the Projections referred to below) that has been or will hereafter be made available by or on behalf of you, the Borrower, the Target or by any of your or their respective agents or representatives in connection with the Transactions (the “Information”) to the Commitment Parties or any of their respective affiliates, agents or representatives or to any Lender or any potential Lender is and will be, when furnished and taken as a whole, complete and correct in all material respects and does not and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not misleading in the light of the circumstances under which such statements were or are made and (b) all financial projections (the “Projections”), if any, that have been or will be prepared by you or on your behalf or by any of your representatives and made available to the Commitment Parties or any of their respective affiliates, agents or representatives or to any Lender or any potential Lender in connection with the Transactions have been or will be prepared in good faith based upon reasonable assumptions (it being understood by the Commitment Parties that such Projections are subject to significant uncertainties and contingencies and that no assurance can be given that any particular Projections will be realized).  You agree that, if at any time prior to the Closing Date and, if requested by us, for a reasonable period (not to exceed 90 days) thereafter as is necessary to complete the syndication of the Bridge Facility any of the representations or warranties in the preceding sentence would be incorrect if the Information or Projections were being furnished, and such representations and warranties were being made, at such time, then you will promptly supplement, or cause to be supplemented, the Information and Projections so that such representations and warranties will be correct at such time.  You agree that, in issuing the commitments hereunder and in arranging and syndicating the Bridge Facility, we will be entitled to use and rely on the Information and the Projections furnished by you or on your behalf or on behalf of the Target without independent verification thereof.

 

  

-6-

  

You agree that the Lead Arrangers may make available any Information and Projections (collectively, the “Company Materials”) to potential Lenders by posting the Company Materials on IntraLinks, the Internet or another similar electronic system (the “Platform”).  You further agree to assist, at the request of the Lead Arrangers, in the preparation of a version of a confidential information memorandum and other marketing materials and presentations to be used in connection with the syndication of the Bridge Facility, consisting exclusively of information or documentation that is either (i) publicly available (or contained in the prospectus or other offering memorandum for the Notes) or (ii) not material with respect to the Borrower, the Target, the Seller or their respective subsidiaries or any of their respective securities for purposes of foreign, United States federal and state securities laws (all such information and documentation being “Public Lender Information”).  Any information and documentation that is not Public Lender Information is referred to herein as “Private Lender Information.”  You further agree that each document to be disseminated by the Lead Arrangers to any Lender or potential Lender in connection with the syndication of the Bridge Facility will be identified by you as either (i) containing Private Lender Information or (ii) containing solely Public Lender Information.  You acknowledge that the following documents will contain solely Public Lender Information: (i) drafts and final definitive documentation with respect to the Bridge Facility; (ii) administrative materials prepared by the Lead Arrangers for potential Lenders (e.g. a lender meeting invitation, allocation and/or funding and closing memoranda); and (iii) notification of changes in the terms of the Bridge Facility.

 

4. Costs, Expenses and Fees.  You agree to pay or reimburse the Lead Arrangers, the Administrative Agent and the Commitment Parties for all reasonable costs and expenses incurred by the Lead Arrangers, the Administrative Agent and the Commitment Parties or their respective affiliates (whether incurred before or after the date hereof) in connection with the Bridge Facility and the preparation, negotiation, execution and delivery of this Commitment Letter and Fee Letter and the Financing Documentation  including without limitation, the fees and disbursements of counsel, regardless of whether any of the Transactions is consummated.  You further agree to pay all reasonable costs and expenses of the Lead Arrangers, the Administrative Agent and the Commitment Parties and their respective affiliates (including, without limitation, fees and disbursements of counsel) incurred in connection with the enforcement of any of its rights and remedies hereunder.  In addition, you hereby agree to pay when and as due the fees described in the Fee Letter.  Once paid, such fees shall not be refundable under any circumstances.  The terms of the Fee Letter are an integral part of the Commitment Parties’ commitments hereunder and constitute part of this Commitment Letter for all purposes hereof, and compliance with the terms thereof is a condition precedent to the Commitment Parties’ commitments hereunder.

 

5. Indemnity.  You agree to indemnify and hold harmless each of the Lead Arrangers, the Commitment Parties, the Administrative Agent and Lenders and their respective affiliates (including, without limitation, controlling persons) and each director, officer, employee, advisor, agent, affiliate, successor, partner, representative and assign of each of the foregoing (each an “Indemnified Person”) from and against any and all actions, suits, investigation, inquiry, claims, losses, damages, liabilities, expenses or proceedings of any kind or nature whatsoever which may be incurred by or asserted against or involve any such Indemnified Person as a result of or arising out of or in any way related to or resulting from this Commitment Letter, the Fee Letter, the Bridge Facility, the use of proceeds thereof, the Transactions or the other transactions contemplated thereby (regardless of whether any such Indemnified Person is a party thereto and regardless of whether such matter is initiated by a third party or otherwise) (any of the foregoing, a “Proceeding”), and you agree to reimburse each Indemnified Person upon demand for any reasonable and documented legal or other out-of-pocket expenses incurred in connection with investigating, defending, preparing to defend or participating in any such Proceeding; provided, however, that no Indemnified Person will be indemnified for any such cost, expense or liability to the extent determined by a final, nonappealable judgment of a court of competent jurisdiction to have resulted solely from the gross negligence or willful misconduct of such Indemnified Person.  In the case of any Proceeding to which the indemnity in this paragraph applies, such indemnity and reimbursement obligations shall be effective, whether or not such Proceeding is brought by you, Holdings, the Target, any of your or their respective securityholders or creditors, an Indemnified Person or any other person, or an Indemnified Person is otherwise a party thereto and whether or not any aspect of the Commitment Letter, the Fee Letter, the Bridge Facility or any of the Transactions is consummated.  Notwithstanding any other provision of this Commitment Letter, (i) no Indemnified Person shall be responsible or liable for damages arising from the unauthorized use by others of information or other materials obtained through internet, electronic, telecommunications or other information transmission and (ii) no Indemnified Person shall have any liability (whether direct or indirect, in contract, tort or otherwise) to you, Holdings, the Target, or any of your or their respective securityholders or creditors arising out of, related to or in connection with the Commitment Letter, the Fee Letter, the Bridge Facility or any of the Transactions or the other transactions contemplated thereby, except to the extent of direct (as opposed to special, indirect, consequential or punitive) damages determined in a final, nonappealable judgment by a court of competent jurisdiction to have resulted solely from such Indemnified Person’s gross negligence or willful misconduct, and it is further agreed that the Commitment Parties shall have liability only to you (as opposed to any other person).

 

  

-7-

  

You will not, without the prior written consent of the Indemnified Person, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any Proceeding in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is a party thereto) unless such settlement, compromise, consent or termination (i) includes an unconditional release of each Indemnified Person from all liability arising out of such Proceeding and (ii) does not include a statement as to, or an admission of, fault, culpability, or a failure to act by or on behalf of such Indemnified Person.

 

6. Confidentiality.  This Commitment Letter is delivered to you on the condition that neither the existence of this Commitment Letter nor the Fee Letter nor any of their contents shall be disclosed, directly or indirectly, to any other person or entity except (i) to your directors, officers, employees and advisors on a “need-to-know” basis and only in connection with the evaluation of the Transactions and (ii) as may be compelled in a judicial or administrative proceeding or as otherwise required by law; provided, however, it is understood and agreed that you may disclose (a) this Commitment Letter and the Fee Letter on a confidential basis to the board of directors and advisors of the Target in connection with their consideration of the Transactions (provided that the Fee Letter is redacted in a manner reasonably satisfactory to the Lead Arrangers); (b) after your acceptance hereof, this Commitment Letter (but not the Fee Letter), in filings with the SEC and other applicable regulatory authorities and stock exchanges, including without limitation in connection with seeking shareholder approval of the transactions contemplated by the Acquisition Agreement; (c) upon notice to the Commitment Parties, this Commitment Letter and the existence and contents hereof (but not the Fee Letter or the contents thereof other than the existence thereof and the contents thereof as part of projections, pro forma information and a generic disclosure of aggregate sources and uses to the extent customary in marketing materials and other required filings) in any prospectus or offering memoranda relating to the Notes, in any syndication or other marketing material in connection with the Bridge Facility or in connection with any public filing requirement; (d) this Commitment Letter and the Fee Letter, after written notice to the Lead Arrangers, in defense of any legal action brought by or against any of you or any of your affiliates, successors or assigns or any of their respective officers, directors, employees, agents, advisors or other representatives, or as may be necessary or advisable in connection with the assertion of any claim or right under or in connection with this Commitment Letter or the Fee Letter; and (e) after your acceptance hereof, this Commitment Letter (but not the Fee Letter), on a confidential basis to any ratings agencies and valuation firms.

 

  

-8-

  

7. Patriot Act.  We hereby notify you that pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56 (October 26, 2001) (as amended, the “Patriot Act”), we and the other Lenders are required to obtain, verify and record information that identifies Holdings, the Borrower and any other Guarantors, which information includes the name, address, tax identification number and other information regarding them that will allow any of us or such Lender to identify Holdings, the Borrower and any other Guarantors in accordance with the Patriot Act.  This notice is given in accordance with the requirements of the Patriot Act and is effective on behalf of the Commitment Parties and each other Lender.

 

8. Governing Law etc.  This Commitment Letter and the Fee Letter shall be governed by, and construed in accordance with the laws of the State of New York.  Any right to trial by jury with respect to any claim, action, suit or proceeding arising out of or contemplated by this Commitment Letter and/or the related Fee Letter is hereby waived.  You hereby irrevocably and unconditionally submit to the exclusive jurisdiction of the federal and New York State courts located in the City of New York, Borough of Manhattan (and appellate courts thereof) in connection with any dispute related to this Commitment Letter or the Fee Letter or any matters contemplated hereby or thereby and agree that any service of process, summons, notice or document by registered mail addressed to you shall be effective service of process for any suit, action or proceeding relating to any such dispute.  You irrevocably and unconditionally waive any objection to the laying of venue of any such suit, action or proceeding brought in any such court and any claim that any such suit, action or proceeding has been brought in an inconvenient forum.  A final judgment in any such suit, action or proceeding may be enforced in any jurisdiction by suit on the judgment or in any other manner provided by law. Nothing herein will affect the right of the Lead Arrangers or Administrative Agent or the Commitment Parties to serve legal process in any other manner permitted by law or affect the Lead Arrangers’ or Administrative Agent’s or Commitment Parties’ right to bring any suit, action or proceeding against Holdings, the Borrower or their respective subsidiaries or its or their property in the courts of other jurisdictions.

 

9. Other Activities; No Fiduciary Relationship; Other Terms.  As you know, each of Morgan Stanley, WFS, RBS, and RBSSI is a full service securities firm engaged, either directly or indirectly through its affiliates in various activities, including securities trading, investment management, financing and brokerage activities and financial planning and benefits counseling for both companies and individuals.  In the ordinary course of these activities, Morgan Stanley, WFS, RBS, and RBSSI or their respective affiliates may actively trade the debt and equity securities (or related derivative securities) of the Borrower or other companies which may be the subject of the arrangements contemplated by this Commitment Letter for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities.  Morgan Stanley, WFS, RBS, and RBSSI or their respective affiliates may also co-invest with, make direct investments in, and invest or co-invest client monies in or with funds or other investment vehicles managed by other parties, and such funds or other investment vehicles may trade or make investments in securities or other debt obligations of the Borrower or other companies which may be the subject of the arrangements contemplated by this Commitment Letter.

 

The Lead Arrangers, the Administrative Agent and the Commitment Parties and their respective affiliates may have economic interests that conflict with those of Holdings, Target or the Borrower and may provide financing or other services to parties whose interests conflict with yours.  You agree that the Lead Arrangers, the Administrative Agent and the Commitment Parties will act under this agreement as an independent contractor and that nothing in this Commitment Letter or the Fee Letter or otherwise will be deemed to create an advisory, fiduciary or agency relationship or fiduciary or other implied duty between the Lead Arrangers, the Administrative Agent and the Commitment Parties on the one hand and Holdings, Target or the Borrower, or their respective management, stockholders or affiliates on the other hand.  You acknowledge and agree that (i) the transactions contemplated by this Commitment Letter and the Fee Letter are arm’s-length commercial transactions between the Lead Arrangers, the Administrative Agent and the Commitment Parties, on the one hand, and you and Holdings, on the other, (ii) in connection therewith and with the process leading to such transaction each Commitment Party is acting solely as a principal and not as a fiduciary of you or Holdings, your or its management, stockholders, creditors or any other person, (iii) the Lead Arrangers, the Administrative Agent and the Commitment Parties have not assumed an advisory or fiduciary responsibility in favor of you or Holdings with respect to the Transactions or the process leading thereto (irrespective of whether the Lead Arrangers, the Administrative Agent or the Commitment Parties or any of their respective affiliates had advised or is currently advising you or Holdings on other matters) or any other obligation to you or Holdings except the obligations expressly set forth in this Commitment Letter and the Fee Letter and (iv) you and Holdings have consulted your and its own legal and financial advisors to the extent you or it deemed appropriate.

 

  

-9-

  

You further acknowledge and agree that you, Holdings and your and its respective subsidiaries are responsible for making your and their own independent judgment with respect to the Transactions and the process leading thereto.  In addition, please note that the Lead Arrangers, the Administrative Agent and the Commitment Parties and their respective affiliates do not provide accounting, tax or legal advice.  You, Holdings and your and its respective subsidiaries agree that you or they will not claim that the Lead Arrangers, the Administrative Agent or the Commitment Parties or any of their respective affiliates has rendered advisory services or any nature or respect, or owes a fiduciary or similar duty to you, Holdings or your or its respective subsidiaries, in connection with the Transactions or the process leading thereto.

 

We reserve the right to employ the services of one or more of our affiliates in providing services contemplated by this Commitment Letter and to allocate, in whole or in part, to such affiliates certain fees payable to us in such manner as we and such affiliates may agree in our sole discretion.  You also agree that the Commitment Parties may at any time and from time to time assign all or any portion of their respective commitments hereunder to one or more of their respective affiliates.  You acknowledge that each Commitment Party may share with any of its affiliates, and such affiliates may share with such Commitment Party, any information related to the Transactions, you, the Target, any of your or their subsidiaries or any of the matters contemplated hereby in connection with the Transactions.  We agree to treat, and cause any of our affiliates to treat, all non-public information provided to us by you as confidential information in accordance with customary banking industry practices.

 

10. Acceptance, Termination, Amendment, etc.  Please indicate your acceptance of the terms of this Commitment Letter and the Fee Letter by returning to us executed counterparts hereof and thereof by no later than 5:00 p.m., New York time, on July 3, 2014.  Thereafter, the commitments and other obligations of the Commitment Parties set forth in this Commitment Letter shall automatically terminate unless each of the Commitment Parties shall in their discretion and unanimously agree to an extension, upon the earliest to occur of (i) the execution and delivery of Financing Documentation by all of the parties thereto and the consummation of the Acquisition; (ii) January 31, 2015, if the Financing Documentation shall not have been executed and delivered by all such parties thereto; and (iii) the date of termination or abandonment of the Acquisition Agreement.  In addition, the Commitment Parties’ commitment hereunder to provide the Bridge Facility will terminate upon the issuance of the Notes in an amount sufficient to yield gross proceeds to the Borrower of at least $140 million.

 

This Commitment Letter and the Fee Letter constitute the entire agreement and understanding between you and your subsidiaries and affiliates and the Commitment Parties with respect to the Bridge Facility and supersede all prior written or oral agreements and understandings relating to the specific matters hereof.  No individual has been authorized by the Commitment Parties or any of their respective affiliates to make any oral or written statements that are inconsistent with this Commitment Letter or the Fee Letter.

 

  

-10-

  

Headings are for convenience of reference only and shall not affect the construction of, or be taken into consideration when interpreting, this Commitment Letter.  Delivery of an executed counterpart of a signature page to this Commitment Letter and the Fee Letter by facsimile or electronic .pdf shall be effective as delivery of a manually executed counterpart of this Commitment Letter and the Fee Letter.  This Commitment Letter and the Fee Letter may be executed in any number of counterparts, and by the different parties hereto on separate counterparts, each of which counterpart shall be an original, but all of which shall together constitute one and the same instrument.  The provisions of Sections 1 (clause (i) of the third paragraph thereof only), 2, 3, 4, 5, 6, 8, 9 and this Section 10 shall survive termination of this Commitment Letter; provided that Sections 2 and 3 shall survive only if the Closing Date occurs.  This Commitment Letter may not be amended or any provision hereof waived or modified except by an instrument in writing signed by the parties hereto.  This Commitment Letter shall not be assignable by you without our prior written consent and any purported assignment without such consent shall be null and void.  This Commitment Letter is intended to be solely for the benefit of the parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties hereto (and any Indemnified Persons).

 

[Remainder of page intentionally left blank]

 

  

-11-

  

We are pleased to have given the opportunity to assist you in connection with the financing for the Transactions.

 

Very truly yours,

 

MORGAN STANLEY SENIOR FUNDING, INC.

 

By:       /s/ Reagan Philipp

Name: Reagan Philipp

Title: Authorized Signatory

 

[Signature Page to Commitment Letter]

  

  

  

WF INVESTMENT HOLDINGS, LLC

By:       /s/ Mark Birenbaum                                                      

Name: Mark Birenbaum

Title: Managing Director

WELLS FARGO SECURITIES, LLC

By:      /s/ Mark Birenbaum                                                      

Name: Mark Birenbaum

Title: Managing Director

 

[Signature Page to Commitment Letter]

  

  

  

RBS SECURITIES INC.

 

By:       /s/ Michael F. Newcomb II 

Name: Michael F. Newcomb II

Title: Managing Director

 

THE ROYAL BANK OF SCOTLAND PLC

 

By:      /s/ Alex Dan                                                      

Name: Alex Dan

Title: Director

 

 

[Signature Page to Commitment Letter]

  

  

  

Agreed to and accepted as of

 

the date first written above:

 

CONSOLIDATED COMMUNICATIONS, INC.

By:       /s/ Steven L. Childers                                                                                       

Name: Steven L. Childers

Title: Senior Vice President and Chief Financial Officer

[Signature Page to Commitment Letter]

  

  

  

EXHIBIT A

 

$140 MILLION SENIOR UNSECURED BRIDGE FACILITY

SUMMARY OF TERMS AND CONDITIONS

 

All capitalized terms used herein but not defined shall have the meanings provided in the Commitment Letter to which this Exhibit A is attached.

 

	
Borrower:

	
Consolidated Communications, Inc. (the “Borrower”), a wholly owned subsidiary of Consolidated Communications Holdings, Inc. (“Holdings”).  The Borrower, or a merger subsidiary of the Borrower, will merge with the Target on the Closing Date.

 

	
 
Joint Lead Arrangers and

	
 

	
Book Runners:

	
Morgan Stanley Senior Funding, Inc. (“MSSF”), Wells Fargo Securities, LLC (“WFS”) and RBS Securities Inc. (“RBSSI” and together with MSSF and WFS, in such capacities, the “Lead Arrangers”).

	
Administrative Agent:

	
MSSF (in such capacity, the “Administrative Agent”).

	
Bridge Lenders:

	
MSSF, WF Investment Holdings, LLC and The Royal Bank of Scotland plc and a syndicate of financial institutions and institutional lenders arranged by the Lead Arrangers in consultation with the Borrower.

 

	
Ranking:

	
The Bridge Loans will rank senior to all subordinated unsecured indebtedness of the Borrower and will rank pari passu to all other unsecured senior debt of the Borrower.

 

	
Guarantors:

	
The Bridge Facility will be guaranteed on a senior unsecured basis by Holdings and each of the Borrower’s subsidiaries (the “Guarantors”) that guarantee the Borrower’s 10.875% senior notes due 2020 (the “Existing Notes”) issued pursuant to that certain Indenture, among the Borrower (as successor in interest by way of merger to Consolidated Communications Finance Co.), Holdings, the other guarantors party thereto from time to time and Wells Fargo Bank, National Association, as trustee, dated as of May 30, 2012, as supplemented by the First Supplemental Indenture, dated as of July 1, 2012, by the Second Supplemental Indenture, dated as of August 3, 2012 and as further supplemented by the Third Supplemental Indenture, dated as of April 1, 2014 (as supplemented, the “Existing Indenture”). The guarantees will rank senior to all subordinated unsecured indebtedness of a Guarantor and will rank pari passu to all other senior unsecured indebtedness of such Guarantor (including the Existing Notes).

 

  

A-1

  

	
Bridge Facility:

	
A senior unsecured bridge facility issued at the Demand Floor Price (as defined in the Fee Letter) and in a principal amount that will yield up to $140 million in gross proceeds to the Borrower (the “Bridge Facility”).  The Bridge Loans will be evidenced by promissory notes.

 

	
Purpose and Availability:

	
The full amount of the Bridge Facility will be available in a single borrowing on the Closing Date and shall be utilized (a) to finance, in part, the Acquisition and the other Transactions and (b) to pay fees and expenses in connection with the Transactions.  The loans made under the Bridge Facility on the Closing Date are herein referred to as the “Bridge Loans.” Once repaid, no amount of Bridge Loans may be reborrowed.

 

	
Security:

	
None.

 

	
 
Bridge Maturity Date:

	
 

	
  

	
The initial maturity of the Bridge Facility shall be the first anniversary of the Closing Date (the “Rollover Date”). If any Bridge Loan has not been repaid in full on or prior to the Rollover Date then, subject to payment of the Rollover Fee (as defined in the Fee Letter), and unless (i) Holdings, the Borrower or any significant subsidiary thereof is subject to a bankruptcy or other insolvency proceeding or (ii) there exists a default in payment with respect to the Bridge Loans (which bankruptcy, insolvency or payment default would instead result in automatic acceleration), the maturity of the Bridge Facility shall be automatically extended to June 1, 2020 (the “Bridge Maturity Date”).

	
 
Exchange to Exchange Notes:

	
 

	
  

	
At any time on or after the Rollover Date, each Bridge Lender may exchange the Bridge Loans it holds for notes (the “Exchange Notes”) maturing on the Bridge Maturity Date and having the terms set forth in the term sheet attached hereto as Annex I; provided that no Bridge Lender shall hold any Exchange Notes unless it is (or will immediately transfer its Exchange Notes to) an Eligible Holder (as defined in Annex I).

	
  

	
In connection with each such exchange, or at any time prior thereto if requested by any Bridge Lender that is a Bridge Lender as of the Closing Date (each, an “Initial Bridge Lender”), the Borrower shall (i) deliver to the Bridge Lender that is receiving Exchange Notes, and to such other Bridge Lenders as such Initial Bridge Lender requests, an offering memorandum of the type customarily utilized in a Rule 144A offering of high yield securities covering the resale of such Exchange Notes by such Bridge Lenders, in such form and substance as reasonably acceptable to the Borrower and such Bridge Lender, and keep such offering memorandum updated in a manner as would be required pursuant to a customary Rule 144A securities purchase agreement, (ii) execute an exchange agreement containing provisions customary in Rule 144A securities purchase agreements (including indemnification provisions) and a registration rights agreement customary in Rule 144A offerings (provided that such registration rights agreement shall be subject to the Bridge Registration Trigger, as defined in Annex I attached hereto), in each case, if requested by such Initial Bridge Lender, (iii) deliver or cause to be delivered such opinions and accountants’ comfort letters addressed to the Initial Bridge Lender and such certificates as the Initial Bridge Lender may request as would be customary in Rule 144A offerings and otherwise in form and substance satisfactory to the Initial Bridge Lender and (iv) take such other actions, and cause its advisors, auditors and counsel to take such actions, as reasonably requested by the Initial Bridge Lender in connection with issuances or resales of Exchange Notes, including providing such information regarding the business and operations of the Borrower and its subsidiaries as is reasonably requested by any prospective holder of Exchange Notes and customarily provided in due diligence investigations in connection with purchases or resales of securities.

  

A-2

  

	
Interest Rate:

	
The Bridge Loans will bear interest at a rate equal to 10.875% and will be payable semi-annually in arrears on June 1 and December 1 of each year, or if any such day is not a business day, on the next succeeding business day.

 

	
  

	
Calculation of interest shall be on the basis of the actual number of days elapsed in a year of twelve 30-day months.

 

	
Default Interest:

	
Upon the occurrence and during the continuance of an event of default or a payment default, interest will accrue on the amount of any loan or other amount outstanding under the Bridge Facility at a rate of 2.0% per annum plus the rate otherwise applicable to the loans under the Bridge Facility and will be payable on demand.

 

	
Mandatory Offer to Purchase:

	
Upon the occurrence of a change of control of the Borrower (to be defined in a manner consistent with the Existing Indenture), the Borrower will be required, to offer to purchase Bridge Loans on a pro rata basis, at a price of 101% of the principal amount thereof, plus accrued and unpaid interest, to the date of prepayment. The Borrower will also be required to offer to purchase the Bridge Loans with the proceeds of certain asset sales at 100% of the principal amount thereof plus accrued interest to be date of purchase on terms consistent with the Existing Indenture.

 

	
Optional Prepayments:

	
Prior to June 1, 2016, prepayment of Bridge Loans will be subject to a customary “make-whole” premium calculated using a discount rate equal to the yield on comparable Treasury securities plus 50 basis points as provided in Section 3.07(a) of the Existing Indenture.  On or after June 1, 2016, the Bridge Loans will be prepayable at the same premium that would be payable upon redemption of the Exchange Notes.

 

  

A-3

  

	
  

	
In addition, Bridge Loans will be prepayable at the option of the Borrower prior to June 1, 2015 with the net cash proceeds of qualified equity offerings of the Borrower or Holdings (provided that such net cash proceeds are contributed to the common equity capital of the Borrower) at a redemption price of 110.875%  of the principal amount thereof; provided that after giving effect to such prepayment at least 65% of the aggregate principal amount of Bridge Loans originally made shall remain outstanding.

 

	
 
Conditions Precedent to

	
 

	
Funding:

	
Conditions precedent to borrowing under the Bridge Facility shall be limited to those expressly set forth in Section 1 of the Commitment Letter and on Exhibit B to the Commitment Letter.

 

	
Representations and Warranties:

	
Representations and warranties applicable to the Borrower and its subsidiaries customary and substantially similar to those set forth in the Second Amended and Restated Credit Agreement dated as of December 23, 2013 (as may be amended, restated, supplemented, or otherwise modified from time to time, the “Existing Credit Agreement”), among Holdings, the Borrower, the lenders party thereto, Wells Fargo Bank, National Association, as Administrative Agent and the other agents party thereto, consisting of the following: organization, etc.; due authorization, non-contravention, etc.; government approval, regulation, etc.; validity, etc.; financial information; no material adverse effect; litigation; compliance with laws and agreements (including, without limitation, the Foreign Corrupt Practices Act); subsidiaries; taxes; pension and welfare plans; environmental warranties; regulations U and X; sanctions; disclosure; accuracy of information; pro forma balance sheets and projected financial statements; insurance; labor matters; solvency; equity interests of Holdings and its subsidiaries, and anti-terrorism laws.

	
Covenants:

	
Covenants that are substantially similar to those contained in the Existing Indenture. In addition, the Borrower will be required to comply with the Commitment Letter and the Fee Letter.

	
Financial Covenants:

	
None.

 

	
Events of Default:

	
Events of default substantially similar to those in the Existing Indenture, but also consisting of the following: breach of representations or warranties and failure to comply with any Securities Demand requirements as set forth in the Fee Letter.

 

  

A-4

  

	
Expenses and Indemnity:

	
The Borrower shall pay or reimburse all reasonable costs and expenses incurred in connection with the syndication of the Bridge Facility and with the preparation, negotiation, execution and delivery of the Bridge Documentation and any security arrangements in connection therewith, including without limitation, the reasonable fees and disbursements of counsel, as more fully stated in and in accordance with the Commitment Letter.  The Borrower shall also pay all costs and expenses of the Administrative Agent, the Bridge Lenders and their respective affiliates (including, without limitation, reasonable fees and disbursements of counsel) incurred in connection with the administration, amendment, waiver or modification (including proposed amendments, waivers or modifications) of, and enforcement of any of its rights and remedies under, the Bridge Documentation.

 

	
  

	
The Borrower will indemnify the Bridge Lenders, the Lead Arrangers, the Administrative Agent and their respective affiliates (including, without limitation, controlling persons) and each director, officer, employee, advisor, agent, affiliate, successor, partner, representative and assign of each of the foregoing (each an “Indemnified Person”) and hold them harmless from and against any and all actions, suits, investigation, inquiry, claims, losses, damages, liabilities, expenses or proceedings of any kind or nature whatsoever which may be incurred by or asserted against or involve any such Indemnified Person as a result of or arising out of or in any way related to or resulting from the Bridge Facility, the use of proceeds thereof, the Transactions or the other transactions contemplated thereby (regardless of whether any such Indemnified Person is a party thereto and regardless of whether such matter is initiated by a third party or otherwise) (any of the foregoing, a “Proceeding”); provided, however, that no Indemnified Person will be indemnified for costs, expenses or liabilities to the extent determined by a final, non-appealable judgment of a court of competent jurisdiction to have been incurred solely from the gross negligence or willful misconduct of such Indemnified Person. The Borrower’s indemnity and reimbursement obligations shall be effective, whether or not such Proceeding is brought by the Borrower, Holdings, any of your or their respective securityholders or creditors, an Indemnified Person or any other person, or an Indemnified Person is otherwise a party thereto.

 

	
Waivers and Amendments:

	
Amendments and waivers of the provisions of the Bridge Documentation shall require the approval of Bridge Lenders holding not less than a majority of the aggregate principal amount of the loans and commitments under the Bridge Facility; provided that (a) the consent of each affected Bridge Lender shall be required with respect to (i) increases in the commitment of such Bridge Lender; (ii) reductions of principal, interest or fees; (iii) extensions of scheduled amortization or the final maturity date and (iv) releases of all or a substantial portion of the value of the guarantees; and (b) the consent of all of the Bridge Lenders shall be required with respect to (i) modification of the voting percentages (or any of the applicable definitions related thereto) and (ii) modifications to the pro rata provisions.

 

  

A-5

  

	
Assignments and Participations:

	
Each Bridge Lender may assign all or a portion of its loans and commitments under the Bridge Facility.  Assignments will require payment of an administrative fee to the Administrative Agent and, except for an assignment to an existing Bridge Lender or an affiliate of an existing Bridge Lender, the consent of the Administrative Agent (not to be unreasonably withheld or delayed).  In addition, each Bridge Lender may sell participations in all or a portion of its loans and commitments under the Bridge Facility; provided that no purchaser of a participation shall have the right to exercise or to cause the selling Bridge Lender to exercise voting rights in respect of the Bridge Facility (except as to certain basic issues).

 

	
 
Yield Protection, Taxes and

	
 

	
Other Deductions:

	
The Bridge Documentation will contain customary provisions for facilities of this kind, and as otherwise deemed necessary or appropriate by the Administrative Agent, including, without limitation, in respect of breakage and redeployment costs, increased costs, funding losses, capital adequacy, illegality, requirements of law.  All payments shall be free and clear of any present or future taxes, withholdings or other deductions whatsoever (other than income taxes in the jurisdiction of a Bridge Lender’s applicable lending office) (it being understood that the Dodd Frank Wall Street Reform and Consumer Protection Act and Basel III and all regulations, interpretations and directives thereunder shall be deemed to be a change in law).

 

	
Governing Law:

	
The State of New York.  Each party to the Bridge Documentation will waive the right to trial by jury and will consent to the exclusive jurisdiction of the state and federal courts located in The Borough of Manhattan, The City of New York.

 

	
 
Counsel to the

	
 

	
 
Commitment Parties, Lead Arrangers

	
 

	
and Administrative Agent:

	
Shearman & Sterling LLP.

 

  

A-6

  

ANNEX I

 

EXCHANGE NOTES

SUMMARY OF TERMS AND CONDITIONS

 

	
Issuer:

	
The Borrower will issue Exchange Notes under the Existing Indenture and the Exchange Notes shall have substantially the same terms as the Existing Notes. The Borrower in its capacity as issuer of the Exchange Notes is referred to as the “Issuer.”

 

	
Guarantors:

	
Same as Bridge Loans.

 

	
Principal Amount:

	
The Exchange Notes will be available only in exchange for the Bridge Loans on or after the Rollover Date.  The principal amount of any Exchange Note will equal 100% of the aggregate principal amount of the Bridge Loans for which it is exchanged.

 

	
Maturity:

	
The Exchange Notes will mature on the Bridge Final Maturity Date.

 

	
Interest Rate:

	
The Exchange Notes will bear interest at a rate equal to 10.875% and will be payable semi-annually in arrears on June 1 and December 1 of each year, or if any such day is not a business day, on the next succeeding business day.

 

	
  

	
Calculation of interest shall be on the basis of the actual number of days elapsed in a year of twelve 30-day months.

 

	
Ranking:

	
Same as Existing Notes.

 

	
Mandatory Offer to Purchase:

	
The Issuer will be required to offer to purchase the Exchange Notes upon a change of control (as defined in the Existing Indenture) at 101% of the principal amount thereof plus accrued interest to the date of purchase.  The Issuer will also be required to offer to purchase Exchange Notes with the proceeds of certain asset sales at 100% of the principal amount thereof plus accrued interest to be date of purchase.

 

	
Optional Redemption:

	
Prior to June 1, 2016, redemption of the Exchange Notes by the Issuer will be subject to a customary “make-whole” premium calculated using a discount rate equal to the yield on comparable Treasury securities plus 50 basis points as provided in Section 3.07(a) of the Existing Indenture.  On or after June 1, 2016, the Exchange Notes will be redeemable at the option of the Issuer at a premium as set forth in Section 3.07(b) of the Existing Indenture.

 

  

A-I-1

  

	
  

	
In addition, Exchange Notes will be redeemable at the option of the Issuer prior to June 1, 2015 with the net cash proceeds of qualified equity offerings of the Issuer or Holdings (provided that such net cash proceeds are contributed to the common equity capital of the Issuer) at a premium equal to 110.875%; provided that after giving effect to such redemption at least 65% of the aggregate principal amount of Existing Notes and the Senior Exchange Notes shall remain outstanding.

 

	
Registration Rights:

	
If on the date that is 366 days after the Rollover Date (i) any Exchange Notes are not freely transferable by the holders thereof that are not affiliates of the Issuer in accordance with Rule 144 (or any similar provision then in force) under the Securities Act of 1933, as amended (the “Securities Act”) or otherwise where no conditions of Rule 144 are then applicable (other than the holding period requirement in paragraph (d)(1)(ii) of Rule 144 so long as such holding period requirement is satisfied), (ii) the restrictive legend has not been removed from the Exchange Notes, or (iii) the Exchange Notes do not bear the same CUSIP number as the Existing Notes (the “Bridge Registration Trigger”), then the Issuer will be required to:

 

	
(a)  

	
file a registration statement for an offer to exchange the Exchange Notes for publicly registered notes with identical terms;

	
(b)  

	
cause the registration statement to become effective under the Securities Act;

	
(c)  

	
complete the exchange offer; and

	
(d)  

	
file a shelf registration statement for the resale of the Exchange Notes if it cannot complete an exchange offer and in certain other circumstances.

	
  

	
Additionally, if the Bridge Registration Trigger has occurred and the Issuer has not complied with the obligations set forth in clauses (a) through (d) above by the date that is 475 days after the Rollover Date, then the Issuer shall pay liquidated damages to each holder of Exchange Notes with respect to the first 90-day period immediately following such 475-day period in an amount equal to 0.25% per annum on the principal amount of Exchange Notes held by such holder.  The amount of the liquidated damages will increase by an additional 0.25% per annum on the principal amount of Exchange Notes with respect to each subsequent 90-day period until the Issuer complies with the obligations set forth in clauses (a) through (d) above and the Exchange Notes bear the same CUSIP number as the Existing Notes (“Bridge Registration Cure”), up to a maximum amount of liquidated damages of 1.50% per annum. Upon the occurrence of the Bridge Registration Cure, the Issuer shall no longer pay liquidated damages to the holders of the Exchange Notes pursuant to this covenant.

 

  

A-I-2

  

	
  

	
In addition, if the Bridge Registration Trigger has occurred, unless and until the Issuer has consummated the exchange offer and, if required, caused the shelf registration statement to become effective, the holders of the Exchange Notes will have the right to “piggy-back” the Exchange Notes in the registration of any debt securities (subject to customary scale-back provisions) that are registered by the Issuer (other than on a Form S-4) unless all the Exchange Notes and Bridge Loans will be redeemed or repaid from the proceeds of such securities.

 

	
Right to Transfer Exchange Notes:

	
Each holder of Exchange Notes shall have the right to transfer its Exchange Notes in whole or in part, at any time to an Eligible Holder (as defined below) and, after the Exchange Notes are registered pursuant to the provisions described under “Registration Rights,” to any person or entity; provided that if the Issuer or any of its affiliates holds Exchange Notes, such Exchange Notes shall be disregarded in any voting.  “Eligible Holder” will mean (a) an institutional “accredited investor” within the meaning of Rule 501 under the Securities Act, (b) a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act, (c) a person acquiring the Exchange Notes pursuant to an offer and sale occurring outside of the United States within the meaning of Regulation S under the Securities Act or (d) a person acquiring the Exchange Notes in a transaction that is, in the opinion of counsel acceptable to the Issuer, exempt from the registration requirements of the Securities Act; provided that in each case such Eligible Holder represents that it is acquiring the Exchange Notes for its own account and that it is not acquiring such Exchange Notes with a view to, or for offer or sale in connection with, any distribution thereof (within the meaning of the Securities Act) that would be in violation of the securities laws of the United States or any state thereof.

 

	
Covenants:

	
Those covenants set forth in the Existing Indenture.

 

	
Events of Default:

	
Those events of default set forth in the Existing Indenture.

 

	
Governing Law:

	
The State of New York.

 

  

A-I-3

  

EXHIBIT B

 

CONDITIONS PRECEDENT

$140 MILLION SENIOR BRIDGE FACILITY

 

Capitalized terms not otherwise defined herein have the same meanings as specified therefor in the Commitment Letter to which this Exhibit B is attached.  The commitments of the Bridge Lenders in respect of the Bridge Facility and the closing and the initial extension of credit thereunder on the Closing Date will be subject to satisfaction of the conditions precedent set forth in Section 1 of the Commitment Letter, on Exhibit A to the Commitment Letter under the heading “Conditions Precedent to Funding”, and the following conditions precedent:

 

(a) Consummation of the Acquisition.  The Lead Arrangers shall have reviewed, and each Lead Arranger shall be reasonably satisfied with, the final structure, terms and conditions and documentation relating to the Acquisition, including the Acquisition Agreement (collectively, the “Acquisition Documents”) (it being understood that the Lead Arrangers are satisfied with the draft Agreement and Plan of Merger, dated June 29, 2014 (the “Draft Acquisition Agreement”) received by the Lead Arrangers’ counsel at 11:20 a.m. (New York time) on June 29, 2014.  The Acquisition and the other Transactions (including the Equity Issuance) shall be consummated concurrently with the initial funding of the Bridge Facility on the Closing Date in compliance with applicable law and in accordance with the Acquisition Documents, without waiver or amendment thereof or any consent thereunder (including any change in the purchase price) unless such waiver, amendment or consent (i) has received the prior written consent of the Lead Arrangers, or (ii) is not materially adverse to any interests of the Lenders or the Lead Arrangers (it being understood and agreed that (1) any change in the consideration paid for the Acquisition shall be deemed to be materially adverse to the interests of the Lenders and the Lead Arrangers, and (2) any change to the definition of “Company Material Adverse Effect”, “Parent Material Adverse Effect” or any similar definition shall be deemed to be materially adverse to the interests of the Lenders and the Arranger).  Immediately following the consummation of the Transactions, no default shall exist under any indebtedness of the Borrower or any of its subsidiaries.

 

(b) Refinancing. The Refinancing shall have occurred or shall occur substantially concurrently with the Closing Date and the Administrative Agent shall have received satisfactory evidence thereof and the discharge (or the making of arrangements for discharge) of all liens other than liens permitted to remain outstanding under the Financing Documentation.

 

(c) Consents.  All necessary governmental and third party consents and approvals necessary in connection with the Transactions shall have been obtained and be effective and all applicable waiting periods shall have expired without any adverse action being taken by any competent authority.

 

(d) Fees and Expenses.  The Borrower shall have complied with all of its obligations under, and the terms of, the Fee Letter.  All accrued costs, fees and expenses (including legal fees and expenses and the fees and expenses of any other advisors) and other compensation payable to the Administrative Agent, the Commitment Parties, the Lead Arrangers and the Lenders shall have been paid and received by the Administrative Agent, the Commitment Parties, the Lead Arrangers, and the Lenders.

 

  

B-1

  

(e) Financial Statements; Pro Formas.  The Lead Arrangers shall have received, review and be satisfied with (i) U.S. GAAP audited consolidated balance sheets and related statements of income, stockholders’ equity and cash flows of each of the Borrower and the Target for each of the three fiscal years ended December 31, 2013 (the “Audited Financial Statements”), (ii) unaudited consolidated balance sheets and related statements of income and cash flows of each of the Borrower and the Target for each fiscal quarter of 2014 ended at least 45 days before the Closing Date (or, if the most recently completed fiscal period is the end of a fiscal year, ended at least 90 days before the Closing Date), for the period elapsed from the beginning of the 2014 fiscal year to the end of such fiscal quarter and for the comparable periods of the preceding fiscal year (the “Unaudited Financial Statements”) (with respect to which the independent auditors shall have performed an SAS 100 review), (iii) a pro forma consolidated and consolidating balance sheet and related statements of income and cash flows for the Borrower (the “Pro Forma Financial Statements”) as of and for the twelve-month period ending on the last day of the most recently completed four-fiscal quarter period ended at least 45 days before the Closing Date (or, if the most recently completed fiscal period is the end of a fiscal year, ended at least 90 days before the Closing Date), prepared after giving effect to the Transactions as if the Transactions had occurred as of such date (in the case of such balance sheet) or at the beginning of such period (in the case of such statements of income and cash flows), promptly after the historical financial statements for such period are available, and (iv) forecasts of the financial performance of the Borrower and its subsidiaries (including the Target and its subsidiaries) (x) on an annual basis, through 2020 and (y) on a quarterly basis, through 2016.  The financial statements referred to in clauses (i) and (ii) shall be prepared in accordance with accounting principles generally accepted in the United States and shall not be materially inconsistent in form and preparation with the financial statements or forecasts previously provided to the Lead Arrangers.  The Pro Forma Financial Statements shall be prepared on a basis consistent with pro forma financial statements set forth in a registration statement filed with the Securities and Exchange Commission.

 

(f) Patriot Act.  The Borrower and each of the Guarantors shall have provided at least three days prior to the Closing Date the documentation and other information to the Lenders that are required by regulatory authorities under the applicable “know-your-customer” rules and regulations, including the Patriot Act and each of the Lead Arrangers and Lenders shall be satisfied with all applicable “know your customer,” anti-money laundering, and similar due diligence and approvals concerning the Borrower and each of the Guarantors.

 

(g) Miscellaneous Closing Conditions.  The Lead Arrangers and the Lenders shall have received a notice of borrowing, satisfactory opinions of counsel for the Borrower and the Guarantors, and of any applicable local counsel, as the case may be, and such corporate resolutions, certificates, organizational documents and other customary closing documentation (including, but not limited to, a solvency certificate from the Chief Financial Officer of the Borrower, in form and substance reasonably satisfactory to the Lead Arrangers), as well as such other documents as the Lead Arrangers and the Lenders may reasonably request, in each case in form and substance reasonably satisfactory to the Lead Arrangers.

 

(h) Representations and Warranties; No Default.  Subject to the limitations set forth in the final paragraph of Section 1 in the Commitment Letter, the representations and warranties of the Borrower, each of the Guarantors and each of their respective subsidiaries at the time of, and after giving effect to, such borrowing shall be accurate in all material respects.  The Acquisition Agreement Representations and the Specified Representations at the time of, and after giving effect to, the borrowing shall be true and correct in all material respects.  There shall be no default or event of default at the time of, and after giving effect to, such borrowing.

 

  

B-2

  

(i) Offering Memorandum.  The Borrower shall have engaged the investment bank(s) referred to in the Fee Letter (the “Investment Bank”) to place the securities referred to therein.  The Borrower shall have (i) as soon as practicable, and in no event less than 20 calendar days prior to the Closing Date, prepared and delivered to the Lead Arrangers one or more preliminary prospectuses, offering memoranda or private placement memoranda (all as determined by, and in a form reasonably satisfactory to, the Investment Bank but in any event including all financial statements and other information that would be required in a registration statement on Form S-1 for an offering registered under the Securities Act (subject to exceptions customary for a Rule 144A/Regulation S offering involving high yield debt securities, including the exception of a consolidating footnote to the financial statements for guarantors and non-guarantors)) relating to any such issuance of the Notes, and thereafter prepare supplements to or final versions of such prospectuses, offering memoranda or private placement memoranda (promptly upon request by, and in a form reasonably satisfactory to, the Investment Bank) (collectively, the “Offering Document”), (ii) caused the independent registered public accountants of each of the Borrower and the Target to render customary draft “comfort letters” (including customary “negative assurances” and SAS 100 review of interim financial statements) with respect to the financial information in the Offering Document that they would be willing to deliver on the pricing and closing date of any Notes, (iii) caused the senior management and other representatives of the Borrower, and used commercially reasonable efforts to cause the senior management and other representatives of the Target, in each case, to provide access in connection with due diligence investigations and to participate in a customary high-yield “road show,” for a consecutive 20 consecutive calendar day period commencing on the date of delivery of a final Offering Document (at no time during which period the financial information in the Offering Document shall be “stale”) and ending on the third business day prior to the Closing Date (the “Marketing Period”); provided (a) such 20 consecutive calendar day period shall not be required to be consecutive to the extent it would include July 3, 2014 through July 6, 2014 and/or November 27, 2014 through November 28, 2014 (which days shall not be counted for the purposes of meeting such 20 consecutive calendar day requirement), (b) to the extent the Marketing Period has not ended on or prior to August 15, 2014, the Marketing Period shall be deemed not to have commenced until September 2, 2014 and (c) to the extent the Marketing Period has not ended on or prior to December 16, 2014, the Marketing Period shall be deemed not to have commenced until January 2, 2015 and (iv) obtained the Ratings prior to the commencement of such 20 calendar day period.  To the extent any issuance of Securities is not consummated on or prior to the Closing Date, this condition shall continue as a covenant following the Closing Date (with the references to specific dates and periods being disregarded).

 

 

B-3

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