Document:

EX-10.7

 EXHIBIT 10.7 
  

 
  

AMENDED AND RESTATED SUBSIDIARY GUARANTY AGREEMENT 

dated as of June 27, 2017 

by and among 
 SWITCH, LTD.,

 as Borrower, 
 and

 Certain Domestic Subsidiaries of 

SWITCH, LTD., 
 as
Guarantors, 
 in favor of 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Administrative Agent 
  

 
  

 TABLE OF CONTENTS 

 

					
		
		  	 	Page	 
	 ARTICLE I DEFINED TERMS
	  	 	1	 
		
	 SECTION 1.1 Definitions
	  	 	1	 
		
	 SECTION 1.2 Other Definitional Provisions
	  	 	1	 
		
	 ARTICLE II GUARANTY
	  	 	2	 
		
	 SECTION 2.1 Guaranty
	  	 	2	 
		
	 SECTION 2.2 Bankruptcy Limitations on Guarantors
	  	 	2	 
		
	 SECTION 2.3 Agreements for Contribution
	  	 	3	 
		
	 SECTION 2.4 Nature of Guaranty
	  	 	3	 
		
	 SECTION 2.5 Waivers
	  	 	5	 
		
	 SECTION 2.6 Modification of Loan Documents, etc.
	  	 	5	 
		
	 SECTION 2.7 Demand by the Administrative Agent
	  	 	6	 
		
	 SECTION 2.8 Remedies
	  	 	6	 
		
	 SECTION 2.9 Benefits of Guaranty
	  	 	7	 
		
	 SECTION 2.10 Termination; Reinstatement
	  	 	7	 
		
	 SECTION 2.11 Payments
	  	 	8	 
		
	 SECTION 2.12 Keepwell
	  	 	8	 
		
	 ARTICLE III [RESERVED]
	  	 	8	 
		
	 ARTICLE IV [RESERVED]
	  	 	8	 
		
	 ARTICLE V MISCELLANEOUS
	  	 	8	 
		
	 SECTION 5.1 Notices
	  	 	8	 
		
	 SECTION 5.2 Amendments, Waivers and Consents
	  	 	9	 
		
	 SECTION 5.3 Expenses; Indemnification; Waiver of Consequential Damages, etc.
	  	 	9	 
		
	 SECTION 5.4 Right of Setoff
	  	 	9	 
		
	 SECTION 5.5 Governing Law; Jurisdiction; Venue; Service of Process
	  	 	10	 
		
	 SECTION 5.6 Waiver of Jury Trial
	  	 	10	 
		
	 SECTION 5.7 Injunctive Relief
	  	 	11	 
		
	 SECTION 5.8 No Waiver by Course of Conduct, Cumulative Remedies
	  	 	11	 
		
	 SECTION 5.9 Successors and Assigns
	  	 	11	 
		
	 SECTION 5.10 All Powers Coupled With Interest
	  	 	11	 
		
	 SECTION 5.11 Survival of Indemnities
	  	 	11	 
		
	 SECTION 5.12 Severability of Provisions
	  	 	12	 
		
	 SECTION 5.13 Counterparts
	  	 	12	 

  

  
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 TABLE OF CONTENTS 

(continued) 
  

					
	 	  	Page	 
	 SECTION 5.14 Integration
	  	 	12	 
		
	 SECTION 5.15 Advice of Counsel, No Strict Construction
	  	 	12	 
		
	 SECTION 5.16 Acknowledgements
	  	 	12	 
		
	 SECTION 5.17 Releases
	  	 	12	 
		
	 SECTION 5.18 Additional Guarantors
	  	 	13	 
		
	 SECTION 5.19 Secured Parties
	  	 	13	 
		
	 SECTION 5.20 Borrower Guaranty
	  	 	13	 

  

  
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 THIS AMENDED AND RESTATED SUBSIDIARY GUARANTY AGREEMENT (this “Guaranty”), dated
as of June 27, 2017, is made by SWITCH, LTD., a Nevada limited liability company (the “Borrower”) and certain Subsidiaries of the Borrower (such Subsidiaries, collectively, the “Guarantors” and each, a
“Guarantor”), in favor of WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent (in such capacity, the “Administrative Agent”) for the benefit of itself and the Secured Parties. 

STATEMENT OF PURPOSE 

Pursuant to the terms of the Amended and Restated Credit Agreement dated of even date herewith (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the Lenders and the Administrative Agent, the Lenders have agreed to make Extensions of Credit to the Borrower upon the terms and subject to
the conditions set forth therein. 
 The Borrower and the Guarantors, though separate legal entities, comprise one integrated financial
enterprise, and all Extensions of Credit to the Borrower will inure, directly or indirectly, to the benefit of each of the Guarantors. 
 It
is a condition precedent to the obligation of the Lenders to make their respective Extensions of Credit to the Borrower under the Credit Agreement that the Guarantors shall have executed and delivered this Guaranty to the Administrative Agent, for
the benefit of the Secured Parties. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged by the parties hereto, and to induce the Administrative Agent and the Lenders to enter into the Credit Agreement and to induce the Lenders to make their respective Extensions of Credit to the Borrower thereunder, the Guarantors hereby,
jointly and severally agree with the Administrative Agent, for the benefit of the Secured Parties, as follows: 
 ARTICLE I 

DEFINED TERMS 
 SECTION
1.1 Definitions. The following terms when used in this Guaranty shall have the meanings assigned to them below: 

“Additional Guarantor” means each Domestic Subsidiary of the Borrower which hereafter becomes a Guarantor pursuant to
Section 5.18 hereof and Section 8.14 of the Credit Agreement. 
 “Guaranteed
Obligations” has the meaning assigned thereto in Section 2.1. 
 SECTION 1.2 Other Definitional
Provisions. 
 (a) Terms defined in the Credit Agreement and not otherwise defined herein shall have the meaning assigned thereto in the
Credit Agreement. 
 (b) The terms of Sections 1.2, 1.6, 1.7 and 12.14 of the Credit Agreement are incorporated
herein by reference as if fully set forth herein; provided that references therein to “Agreement” shall mean this Guaranty. 
  

 (c) Where the context requires, terms relating to the Collateral or any part thereof, when used
in relation to a Guarantor, shall refer to such Guarantor’s Collateral or the relevant part thereof. 
 ARTICLE II 

GUARANTY 
 SECTION 2.1
Guaranty. Each Guarantor hereby, jointly and severally with the other Guarantors, absolutely, irrevocably and unconditionally guarantees as a primary obligor and not merely as a surety to the Administrative Agent for the benefit of the
Secured Parties, and their respective permitted successors, endorsees, transferees and assigns, the prompt payment and performance of all Secured Obligations, whether primary or secondary (whether by way of endorsement or otherwise), whether now
existing or hereafter arising, whether or not from time to time reduced or extinguished (except by payment thereof) or hereafter increased or incurred, whether enforceable or unenforceable, whether or not discharged, stayed or otherwise affected by
any Debtor Relief Law or proceeding thereunder, whether created directly with the Administrative Agent or any other Secured Party or acquired by the Administrative Agent or any other Secured Party through assignment or endorsement or otherwise,
whether matured or unmatured, whether joint or several, as and when the same become due and payable (whether at maturity or earlier, by reason of acceleration, mandatory repayment or otherwise), in accordance with the terms of any such instruments
evidencing any such obligations, including all renewals, extensions or modifications thereof (all of the foregoing being hereafter collectively referred to as the “Guaranteed Obligations”). 

SECTION 2.2 Bankruptcy Limitations on Guarantors. Notwithstanding anything to the contrary contained in
Section 2.1, it is the intention of each Guarantor and the Secured Parties that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution or insolvency or
any similar proceeding with respect to any Guarantor or its assets, the amount of such Guarantor’s obligations with respect to the Guaranteed Obligations (or any other obligations of such Guarantor to the Secured Parties) shall be equal to, but
not in excess of, the maximum amount thereof not subject to avoidance or recovery by operation of Debtor Relief Laws after giving effect to Section 2.3(a). To that end, but only in the event and to the extent that after
giving effect to Section 2.3(a), such Guarantor’s obligations with respect to the Guaranteed Obligations (or any other obligations of such Guarantor to the Secured Parties) or any payment made pursuant to such
Guaranteed Obligations (or any other obligations of such Guarantor to the Secured Parties) would, but for the operation of the first sentence of this Section 2.2, be subject to avoidance or recovery in any such proceeding
under Debtor Relief Laws after giving effect to Section 2.3(a), the amount of such Guarantor’s obligations with respect to the Guaranteed Obligations (or any other obligations of such Guarantor to the Secured Parties)
shall be limited to the largest amount which, after giving effect thereto, would not, under Debtor Relief Laws, render such Guarantor’s obligations with respect to the Guaranteed Obligations (or any other obligations of such Guarantor to the
Secured Parties) unenforceable or avoidable or otherwise subject to recovery under Debtor Relief Laws. To the extent any payment actually made pursuant to the Guaranteed Obligations exceeds the limitation of the first sentence of this
Section 2.2 and is otherwise subject to avoidance and recovery in any such proceeding under Debtor Relief Laws, the amount subject to avoidance shall in all events be limited to the amount by which such actual payment
exceeds such limitation and the Guaranteed Obligations as limited by the first sentence of this Section 2.2 shall in all events remain in full force and effect and be fully enforceable against such Guarantor. The first
sentence of this Section 2.2 is intended solely to preserve the rights of the Secured Parties hereunder against such Guarantor in such proceeding to the maximum extent permitted by Debtor Relief Laws and neither such
Guarantor, the Borrower, any other Guarantor nor any other Person shall have any right or claim under such sentence that would not otherwise be available under Debtor Relief Laws in such proceeding. 

  
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 SECTION 2.3 Agreements for Contribution. 

(a) Contribution. If any payment shall be required to be made to the Administrative Agent or any Secured Party under this Guaranty,
each Guarantor hereby unconditionally and irrevocably agrees it will contribute, to the maximum extent permitted by law, such amounts to each other Guarantor and the Borrower so as to maximize the aggregate amount paid to the Administrative Agent or
such Secured Parties under or in connection with the Loan Documents. 
 (b) No Subrogation. Notwithstanding any payment or payments
by any of the Guarantors hereunder, or any setoff or application of funds of any of the Guarantors by the Administrative Agent or any other Secured Party, or the receipt of any amounts by the Administrative Agent or any other Secured Party with
respect to any of the Guaranteed Obligations, none of the Guarantors shall be entitled to be subrogated to any of the rights of the Administrative Agent or any other Secured Party against the Borrower or the other Guarantors or against any
collateral security held by the Administrative Agent or any other Secured Party for the payment of the Guaranteed Obligations nor shall any of the Guarantors seek any reimbursement or contribution from the Borrower or any of the other Guarantors in
respect of payments made by such Guarantor in connection with the Guaranteed Obligations, until all amounts owing to the Administrative Agent and the Secured Parties on account of the Guaranteed Obligations (other than (1) contingent
indemnification obligations, (2) obligations and liabilities under Secured Cash Management Agreements or Secured Hedge Agreements as to which arrangements satisfactory to the applicable Cash Management Bank or Hedge Bank shall have been made
and (3) Letters of Credit that have either been Cash Collateralized or as to which arrangements satisfactory to the Issuing Lender have been made) are indefeasibly paid in full in cash and the Commitments are terminated. If any amount
shall be paid to any Guarantor on account of such subrogation reimbursement or contribution rights at any time when all of such Guaranteed Obligations shall not have been indefeasibly paid in full, such amount shall be held by such Guarantor in
trust for the Administrative Agent, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be turned over to the Administrative Agent in the exact form received by such Guarantor (duly endorsed by such
Guarantor to the Administrative Agent, if required) to be applied against the Guaranteed Obligations, whether matured or unmatured, in such order as set forth in the Credit Agreement. 

(c) Agreements for Reimbursement. Notwithstanding anything to the contrary contained herein, the parties hereto acknowledge and agree
that, as the Borrower is part of an integrated financial enterprise to which the Borrower and each Guarantor are a party, each Guarantor shall have a right of reimbursement and indemnity from the Borrower for any amount paid by such Guarantor in
lieu of a right of contribution between the Guarantors and the Borrower. 
 SECTION 2.4 Nature of Guaranty. 

(a) Each Guarantor agrees that this Guaranty is a continuing, unconditional guaranty of payment and performance and not of collection, and
that its obligations under this Guaranty shall be primary, absolute and unconditional, irrespective of, and unaffected by, and each Guarantor hereby irrevocably waives, to the extent not prohibited by Applicable Law, any defenses to enforcement it
may have (now or in the future) by reason of: 
 (i) the genuineness, legality, validity, regularity, enforceability or any
future amendment of, or change in, or supplement to, the Credit Agreement, any other Loan Document, any Secured Cash Management Agreement or any Secured Hedge Agreement or any other agreement, document or instrument to which the Borrower, any
Guarantor or any of their respective Subsidiaries or Affiliates is or may become a party, (including any increase in the Secured Obligations resulting from any extension of additional credit or otherwise); 

  
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 (ii) any action under or in respect of the Credit Agreement, any other Loan
Document, any Secured Cash Management Agreement or any Secured Hedge Agreement in the exercise of any remedy, power or privilege contained therein or available to any of them at law, in equity or otherwise, or waiver or refraining from exercising
any such remedies, powers or privileges (including any change in the time, place or manner of payment of, or in any other term of, the Obligations or any other obligation of any Credit Party under any Loan Document, or any rescission, waiver,
amendment or other modification of any Loan Document or any other agreement, including any increase in the Secured Obligations resulting from any extension of additional credit or otherwise); 

(iii) the absence of any action to enforce this Guaranty, the Credit Agreement, any other Loan Document, any Secured Cash
Management Agreement or any Secured Hedge Agreement or the waiver or consent by the Administrative Agent or any other Secured Party with respect to any of the provisions of this Guaranty, the Credit Agreement, any other Loan Document, any Secured
Cash Management Agreement or any Secured Hedge Agreement; 
 (iv) the existence, value or condition of, or failure to perfect
its Lien against, any security for or other guaranty of the Guaranteed Obligations or any action, or the absence of any action, by the Administrative Agent or any other Secured Party in respect of such security or guaranty (including, without
limitation, the release of any such security or guaranty); 
 (v) any structural change in, restructuring of or other similar
organizational change of the Borrower, any Guarantor, any other guarantors or any of their respective Subsidiaries or Affiliates; 

(vi) any other action or circumstances which might otherwise constitute a legal or equitable discharge or defense of a surety
or guarantor; or 
 (vii) any other circumstance (including, without limitation, any statute of limitations) or manner of
administering the Loans or any existence of or reliance on any representation by any Secured Party that might vary the risk of any guarantor or otherwise operate as a defense available to, or a legal or equitable discharge of, any Credit Party or
any other guarantor or surety; 
 it being agreed by each Guarantor that, subject to the first sentence of Section 2.2, its
obligations under this Guaranty shall not be discharged until the final indefeasible payment and performance, in full, of the Guaranteed Obligations (other than (1) contingent indemnification obligations, (2) obligations and liabilities
under Secured Cash Management Agreements or Secured Hedge Agreements as to which arrangements satisfactory to the applicable Cash Management Bank or Hedge Bank shall have been made and (3) Letters of Credit that have either been Cash
Collateralized or as to which arrangements satisfactory to the Issuing Lender have been made) and the termination of the Commitments. 
 (b)
Each Guarantor represents, warrants and agrees that, to the extent permitted by Applicable Law, the Guaranteed Obligations and its obligations under this Guaranty are not and shall not be subject to any counterclaims, offsets or defenses of any kind
(other than the defense of payment or performance) against the Administrative Agent, the other Secured Parties or the Borrower whether now existing or which may arise in the future. 

(c) Each Guarantor hereby agrees and acknowledges that the Guaranteed Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in reliance upon this Guaranty, and all dealings among the Borrower and any of the Guarantors, on the one hand, and the Administrative Agent and the other Secured Parties, on
the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon this Guaranty. 

  
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 SECTION 2.5 Waivers. To the extent permitted by Applicable Law, each Guarantor expressly,
unconditionally and irrevocably waives all of the following rights and defenses (and agrees not to take advantage of or assert any such right or defense): 

(a) any rights it may now or in the future have under any statute, or at law or in equity, or otherwise, to compel the Administrative Agent or
any other Secured Party to proceed in respect of the Guaranteed Obligations against the Borrower, any Guarantor, any other guarantor or any other Person or against any security for or other guaranty of the payment and performance of the Guaranteed
Obligations before proceeding against, or as a condition to proceeding against, such Guarantor; 
 (b) any defense based upon the failure of
the Administrative Agent or any other Secured Party to commence an action in respect of the Guaranteed Obligations against the Borrower, any Guarantor, any other guarantor or any other Person or any security for the payment and performance of the
Guaranteed Obligations; 
 (c) any right to insist upon, plead or in any manner whatever claim or take the benefit or advantage of, any
appraisal, valuation, stay, extension, marshalling of assets or redemption laws, or exemption, whether now or at any time hereafter in force, which may delay, prevent or otherwise affect the performance by such Guarantor of its obligations under, or
the enforcement by the Administrative Agent or the other Secured Parties of this Guaranty; 
 (d) any right of diligence, presentment,
demand, protest and notice of whatever kind or nature (except as specifically required herein or in the other Loan Documents) with respect to any of the Guaranteed Obligations or any requirement that any Secured Party protect, secure, perfect or
insure any Lien or any property subject thereto; 
 (e) any and all rights to notice of the creation, renewal, extension or accrual of any of
the Guaranteed Obligations and notice of acceptance of, or proof of reliance upon, this Guaranty by the Administrative Agent or any other Secured Party; and 

(f) any defense or right of setoff or recoupment or counterclaim (other than a defense of payment) against or in respect of the Guaranteed
Obligations; 
 Each Guarantor agrees that any notice or directive given at any time to the Administrative Agent or any other Secured Party
which is inconsistent with any of the foregoing waivers shall be null and void and may be ignored by the Administrative Agent or such Secured Party, and, in addition, may not be pleaded or introduced as evidence in any litigation relating to this
Guaranty for the reason that such pleading or introduction would be at variance with the written terms of this Guaranty, unless the Administrative Agent and the Required Lenders have specifically agreed otherwise in writing. The foregoing waivers
are of the essence of the transaction contemplated by the Credit Agreement, the other Loan Documents, the Secured Cash Management Agreements and the Secured Hedge Agreements and, but for this Guaranty and such waivers, the Administrative Agent and
other Secured Parties would decline to enter into the Credit Agreement, the other Loan Documents, the Secured Cash Management Agreements and the Secured Hedge Agreements. 

SECTION 2.6 Modification of Loan Documents, etc. Neither the Administrative Agent nor any other Secured Party shall incur any liability
to any Guarantor as a result of any of the following, and none of the following shall impair or release this Guaranty or any of the obligations of any Guarantor under this Guaranty: 

  
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 (a) any change or extension of the manner, place or terms of payment of, or renewal or alteration
of all or any portion of, the Guaranteed Obligations; 
 (b) any action under or in respect of the Credit Agreement, any other Loan Document,
any Secured Cash Management Agreement or any Secured Hedge Agreement in the exercise of any remedy, power or privilege contained therein or available to any of them at law, in equity or otherwise, or waiver or refraining from exercising any such
remedies, powers or privileges; 
 (c) any amendment to, or modification of, in any manner whatsoever, any Loan Document, any Secured Cash
Management Agreement or any Secured Hedge Agreement; 
 (d) any extension or waiver of the time for performance by any Guarantor, any other
guarantor, the Borrower or any other Person of, or compliance with, any term, covenant or agreement on its part to be performed or observed under a Loan Document, a Secured Cash Management Agreement or a Secured Hedge Agreement, or waiver of such
performance or compliance or consent to a failure of, or departure from, such performance or compliance; 
 (e) the taking and holding of
security or collateral for the payment of the Guaranteed Obligations or the sale, exchange, release, disposal of, or other dealing with, any property pledged, mortgaged or conveyed, or in which the Administrative Agent or the other Secured Parties
have been granted a Lien, to secure any Indebtedness of any Guarantor, any other guarantor, the Borrower or any other Person to the Administrative Agent or the other Secured Parties; 

(f) the release of anyone who may be liable in any manner for the payment of any amounts owed by any Guarantor, any other guarantor or the
Borrower to the Administrative Agent or any other Secured Party; 
 (g) any modification or termination of the terms of any intercreditor or
subordination agreement pursuant to which claims of other creditors of any Guarantor, any other guarantor or the Borrower are subordinated to the claims of the Administrative Agent or any other Secured Party; or 

(h) any application of any sums by whomever paid or however realized to any Guaranteed Obligations owing by any Guarantor, any other guarantor
or the Borrower to the Administrative Agent or any other Secured Party in such manner as the Administrative Agent or any other Secured Party shall determine in its reasonable discretion. 

SECTION 2.7 Demand by the Administrative Agent. In addition to the terms set forth in this Article II and in no manner imposing
any limitation on such terms, if all or any portion of the then outstanding Guaranteed Obligations are declared to be immediately due and payable, then the Guarantors shall, upon demand in writing therefor by the Administrative Agent to the
Guarantors, pay all or such portion of the outstanding Guaranteed Obligations due hereunder then declared due and payable. 
 SECTION 2.8
Remedies. Upon the occurrence and during the continuance of any Event of Default, with the consent of the Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the Administrative Agent shall, enforce
against the Guarantors their obligations and liabilities hereunder and exercise such other rights and remedies as may be available to the Administrative Agent hereunder, under the Credit Agreement, the other Loan Documents, the Secured Cash
Management Agreements, the Secured Hedge Agreements or otherwise; provided that upon the 

  
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occurrence and during the continuance of any Event of Default attributable to a failure to comply with the Financial Covenant (which has not become an Event of Default with respect to the Term
Loans pursuant to Section 10.1(d) of the Credit Agreement), actions pursuant to this Section 2.8 may be taken by the Required Revolving Credit Lenders with respect to the Revolving Credit Loans and
the Revolving Credit Commitments only (without the requirement for Required Lender action) or by the Administrative Agent at the direction of the Required Revolving Credit Lenders. 

SECTION 2.9 Benefits of Guaranty. The provisions of this Guaranty are for the benefit of the Administrative Agent and the other Secured
Parties and their respective permitted successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between the Borrower and its Subsidiaries, the Administrative Agent and the other Secured Parties, the obligations
of the Borrower and its Subsidiaries under the Loan Documents, the Secured Cash Management Agreements or the Secured Hedge Agreements. In the event all or any part of the Guaranteed Obligations are transferred, endorsed or assigned by the
Administrative Agent or any other Secured Party to any Person or Persons as permitted under the Credit Agreement, any reference to an “Administrative Agent”, or “Secured Party” herein shall be deemed to refer equally to such
Person or Persons. 
 SECTION 2.10 Termination; Reinstatement. 

(a) Subject to clause (c) below, this Guaranty shall remain in full force and effect until all the Guaranteed Obligations (other than
(1) contingent indemnification obligations, (2) obligations and liabilities under Secured Cash Management Agreements or Secured Hedge Agreements as to which arrangements satisfactory to the applicable Cash Management Bank or Hedge Bank
shall have been made and (3) Letters of Credit that have either been Cash Collateralized or as to which arrangements satisfactory to the Issuing Lender have been made) and all the obligations of the Guarantors shall have been indefeasibly paid
in full in cash and the Commitments terminated. 
 (b) No payment made by the Borrower, any Guarantor, any other guarantor or any other
Person received or collected by the Administrative Agent or any other Secured Party from the Borrower, any Guarantor, any other guarantor or any other Person by virtue of any action or proceeding or any setoff or appropriation or application at any
time or from time to time in reduction of or in payment of the Guaranteed Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor hereunder which shall, notwithstanding any such payment (other than
any payment made by such Guarantor in respect of the obligations of the Guarantors or any payment received or collected from such Guarantor in respect of the obligations of the Guarantors), remain liable for the obligations of the Guarantors up to
the maximum liability of such Guarantor hereunder until the Guaranteed Obligations (other than (1) contingent indemnification obligations, (2) obligations and liabilities under Secured Cash Management Agreements or Secured Hedge Agreements
as to which arrangements satisfactory to the applicable Cash Management Bank or Hedge Bank shall have been made and (3) Letters of Credit that have either been Cash Collateralized or as to which arrangements satisfactory to the Issuing Lender
have been made) and all the obligations of the Guarantors shall have been indefeasibly paid in full in cash and the Commitments terminated. 

(c) Each Guarantor agrees that, if any payment made by the Borrower or any other Person applied to the Guaranteed Obligations is at any time
avoided, annulled, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid, or is repaid in whole or in part pursuant to a good faith settlement of a pending or threatened avoidance
claim, or the proceeds of any Collateral are required to be refunded by the Administrative Agent or any other Secured Party to the Borrower, its estate, trustee, receiver or any other Person, including, without limitation, any Guarantor, under any
Applicable Law or equitable cause, then, to the extent of such payment or repayment, each Guarantor’s liability hereunder (and any Lien or Collateral securing such liability) shall 

  
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be and remain in full force and effect, as fully as if such payment had never been made, and, if prior thereto, this Guaranty shall have been canceled or surrendered (and if any Lien or
Collateral securing such Guarantor’s liability hereunder shall have been released or terminated by virtue of such cancellation or surrender), this Guaranty (and such Lien or Collateral) shall be reinstated in full force and effect, and such
prior cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligations of such Guarantor in respect of the amount of such payment (or any Lien or Collateral securing such obligation). 

SECTION 2.11 Payments. Any payments by the Guarantors shall be made to the Administrative Agent, to be credited and applied to the
Guaranteed Obligations in accordance with Section 10.4 of the Credit Agreement, in immediately available Dollars to an account designated by the Administrative Agent or at the Administrative Agent’s Office or at any
other address that may be specified in writing from time to time by the Administrative Agent. 
 SECTION 2.12 Keepwell. Each
Qualified ECP Guarantor (as defined below) hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds and other support as may be needed from time to time by each other Credit Party to honor all of its
obligations under this Guaranty and the other Loan Documents in respect of Swap Obligations (provided, however, that each Qualified ECP Guarantor shall only be liable under this Section for the maximum amount of such liability that can
be hereby incurred without rendering its obligations under this Section, or otherwise under this Guaranty or any other Loan Document, voidable under Debtor Relief Laws and not for any greater amount). Subject to
Section 2.10, the obligations of each Qualified ECP Guarantor under this Section shall remain in full force and effect until all of the Guaranteed Obligations and all the obligations of the Guarantors shall have been paid
in full in cash and the Commitments terminated. Each Qualified ECP Guarantor intends that this Section constitute, and this Section shall be deemed to constitute, a “keepwell, support or other agreement” for the benefit of each other
Credit Party for all purposes of Section 1a(18)(A)(v)(II) of the Commodity Exchange Act. For purposes of this Section, “Qualified ECP Guarantor” means, in respect of any Swap Obligation, each Credit Party that has total assets
exceeding $10,000,000 at the time the relevant guarantee or grant of the relevant security interest becomes effective with respect to such Swap Obligation or such other Person as constitutes an “eligible contract participant” under the
Commodity Exchange Act or any regulations promulgated thereunder and can cause another Person to qualify as an “eligible contract participant” at such time by entering into a keepwell under Section 1a(18)(A)(v)(II) of the Commodity
Exchange Act. 
 ARTICLE III 

[RESERVED] 
 ARTICLE IV 

[RESERVED] 
 ARTICLE V 

MISCELLANEOUS 
 SECTION
5.1 Notices. All notices and communications hereunder shall be given to the addresses and otherwise made in accordance with Section 12.1 of the Credit Agreement; provided that notices and communications
to the Guarantors shall be directed to the Guarantors, at the address of the Borrower set forth in Section 12.1 of the Credit Agreement. 

  
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 SECTION 5.2 Amendments, Waivers and Consents. None of the terms or provisions of this
Guaranty may be waived, amended, supplemented or otherwise modified, nor any consent be given, except in accordance with Section 12.2 of the Credit Agreement. 

SECTION 5.3 Expenses; Indemnification; Waiver of Consequential Damages, etc. 

(a) The Guarantors shall, jointly and severally, pay all reasonable
out-of-pocket expenses (including, without limitation, reasonable and documented attorney’s fees and expenses) incurred by the Administrative Agent and each other
Secured Party to the extent the Borrower would be required to do so pursuant to Section 12.3 of the Credit Agreement. 

(b) The Guarantors shall, jointly and severally, pay and indemnify each Indemnitee against Indemnified Taxes and Other Taxes to the extent the
Borrower would be required to do so pursuant to Section 5.11 of the Credit Agreement. 
 (c) The Guarantors shall,
jointly and severally, indemnify each Indemnitee to the extent the Borrower would be required to do so pursuant to Section 12.3 of the Credit Agreement. 

(d) Notwithstanding anything to the contrary contained in this Guaranty, to the fullest extent permitted by Applicable Law, each Guarantor
agrees that it shall not assert, and hereby waives, any claim against any Indemnitee, on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out of, in connection with,
or as a result of, this Guaranty, any other Loan Document, any Secured Cash Management Agreement, any Secured Hedge Agreement or any agreement or instrument contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of
Credit or the use of the proceeds thereof. 
 (e) No Indemnitee referred to in this Section 5.3 shall be liable for
any damages arising from the use by unintended recipients of any information or other materials distributed by it through telecommunications, electronic or other information transmission systems in connection with this Guaranty, the other Loan
Documents, any Secured Cash Management Agreements, any Secured Hedge Agreements or the transactions contemplated hereby or thereby, except to the extent resulting from its gross negligence or willful misconduct as determined by a court of competent
jurisdiction in a final non-appealable judgment. 
 (f) All amounts due under this
Section 5.3 shall be payable promptly after demand therefor. 
 (g) Each party’s obligations under this
Section 5.3 shall survive the termination of the Loan Documents and the payment of the Obligations thereunder. 

SECTION 5.4 Right of Setoff. If an Event of Default shall have occurred and be continuing, each Secured Party and each of its
respective Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by Applicable Law, to setoff and apply any and all deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any time owing by such Secured Party or any such Affiliate to or for the credit or the account of such Guarantor to the same extent a Lender could do so under
Section 12.4 of the Credit Agreement. The rights of each Secured Party and its respective Affiliates under this Section 5.4 are in addition to other rights and remedies (including
other rights of setoff) that such Secured Party or its respective Affiliates may have. Each Secured Party agrees to notify such Guarantor and the Administrative Agent promptly after any such setoff and application; provided that the failure
to give such notice shall not affect the validity of such setoff and application. 

  
 9 

 SECTION 5.5 Governing Law; Jurisdiction; Venue; Service of Process. 

(a) Governing Law. This Guaranty and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based
upon, arising out of or relating to this Guaranty and the transactions contemplated hereby shall be governed by, and construed in accordance with, the laws of the State of New York. 

(b) Submission to Jurisdiction. Each Guarantor agrees that it will not commence any action, litigation or proceeding of any kind or
description, whether in law or equity, whether in contract or in tort or otherwise against the Administrative Agent, or any other Secured Party or any Related Party of the foregoing, in any way relating to this Guaranty or the transactions relating
hereto in any forum other than the courts of the State of New York sitting in New York County, and of the United States District Court of the Southern District of New York, and any appellate court from any thereof and each of the parties hereto
irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that all claims in respect of any such action, litigation or proceeding may be heard and determined in such New York State court or, to the fullest extent
permitted by Applicable Law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action, litigation or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law. Nothing in this Guaranty or in any other Loan Document shall affect any right that the Administrative Agent or any other Secured Party may otherwise have to bring any action, litigation or proceeding relating to this
Guaranty or any other Loan Document against any Guarantor or its Properties in the courts of any jurisdiction. 
 (c) Waiver of Venue.
Each Guarantor irrevocably and unconditionally waives, to the fullest extent permitted by Applicable Law, any objection that it may now or hereafter have to the laying of venue of any action, litigation or proceeding arising out of or relating to
this Guaranty or any other Loan Document in any court referred to in paragraph (b) of this Section 5.5. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by Applicable Law, the
defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
 (d) Service of Process. Each
party hereto irrevocably consents to service of process in the manner provided for notices in Section 12.1 of the Credit Agreement. Nothing in this Guaranty will affect the right of any party hereto to serve process in any
other manner permitted by Applicable Law. 
 (e) Appointment of the Borrower as Agent for the Guarantors. Each Guarantor hereby
irrevocably appoints and authorizes the Borrower to act as its agent for service of process and notices required to be delivered under this Guaranty or under the other Loan Documents, it being understood and agreed that receipt by the Borrower of
any summons, notice or other similar item shall be deemed effective receipt by such Guarantor and its Subsidiaries. 
 SECTION 5.6 Waiver
of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS GUARANTY OR
ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS GUARANTY AND THE OTHER
LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 5.6. 

  
 10 

 SECTION 5.7 Injunctive Relief. Each Guarantor recognizes that, in the event such Guarantor
fails to perform, observe or discharge any of its obligations or liabilities under this Guaranty or any other Loan Document, any remedy of law may prove to be inadequate relief to the Administrative Agent and the other Secured Parties. Therefore,
each Guarantor agrees that the Administrative Agent and the other Secured Parties, at the option of the Administrative Agent and the other Secured Parties, shall be entitled to temporary and permanent injunctive relief in any such case without the
necessity of proving actual damages. 
 SECTION 5.8 No Waiver by Course of Conduct, Cumulative Remedies. No course of dealing between
any Guarantor, the Administrative Agent or any Secured Party or their respective agents or employees shall be effective to change, modify or discharge any provision of this Guaranty or any other Loan Documents or to constitute a waiver of any Event
of Default. The enumeration of the rights and remedies of the Administrative Agent and the other Secured Parties set forth in this Guaranty is not intended to be exhaustive and the exercise by the Administrative Agent and the other Secured Parties
of any right or remedy shall not preclude the exercise of any other rights or remedies, all of which shall be cumulative, and shall be in addition to any other right or remedy given hereunder or under the other Loan Documents or that may now or
hereafter exist at law or in equity or by suit or otherwise. Neither the Administrative Agent nor any other Secured Party shall by any act (except by a written instrument pursuant to Section 5.2), delay, indulgence,
omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. No delay or failure to take action on the part of the Administrative Agent or any other Secured Party in
exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise of any such right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, power or privilege or shall be construed to be a waiver of any Event of Default. A waiver by the Administrative Agent or any other Secured Party of any right or remedy hereunder on any one occasion shall not be construed as a bar to any right
or remedy which the Administrative Agent or such Secured Party would otherwise have on any future occasion. 
 SECTION 5.9 Successors and
Assigns. The provisions of this Guaranty shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; except that no Guarantor may assign or otherwise transfer any of its rights or
obligations under this Guaranty without the prior written consent of the Administrative Agent and the other Secured Parties (except as otherwise provided by the Credit Agreement). 

SECTION 5.10 All Powers Coupled With Interest. All powers of attorney and other authorizations granted to the Secured Parties, the
Administrative Agent and any Persons designated by the Administrative Agent or any other Secured Party pursuant to any provisions of this Guaranty or any of the other Loan Documents shall be deemed coupled with an interest and shall be irrevocable
so long as any of the Guaranteed Obligations (other than (1) contingent indemnification obligations, (2) obligations and liabilities under Secured Cash Management Agreements or Secured Hedge Agreements as to which arrangements satisfactory
to the applicable Cash Management Bank or Hedge Bank shall have been made and (3) Letters of Credit that have either been Cash Collateralized or as to which arrangements satisfactory to the Issuing Lender have been made) remain unpaid or
unsatisfied, any of the Commitments remain in effect or the Credit Facility has not been terminated. 
 SECTION 5.11 Survival of
Indemnities. Notwithstanding any termination of this Guaranty, the indemnities to which the Administrative Agent and the other Secured Parties are entitled under the provisions of Section 5.3 and any other provision of
this Guaranty and the other Loan Documents shall continue in full force and effect and shall protect the Administrative Agent and the other Secured Parties against events arising after such termination as well as before. 

  
 11 

 SECTION 5.12 Severability of Provisions. Any provision of this Guaranty which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without invalidating the remainder of such provision or the remaining provisions hereof or
thereof or affecting the validity or enforceability of such provision in any other jurisdiction. 
 SECTION 5.13 Counterparts. This
Guaranty may be executed in any number of counterparts (and by different parties hereto in separate counterparts), each of which shall constitute an original, but all of which taken together shall constitute a single contract. Delivery of an
executed counterpart of a signature page to this Guaranty or any document or instrument delivered in connection herewith by facsimile or in electronic (i.e., “pdf” or “tif”) form shall be effective as delivery of a
manually executed counterpart of this Guaranty or such other document or instrument, as applicable. 
 SECTION 5.14 Integration. This
Guaranty and the other Loan Documents, and any separate letter agreements with respect to fees constitute the entire contract of the parties relating to the subject matter hereof and supersede all previous agreements and understandings, written or
oral, relating to the subject matter hereof. In the event of any conflict between the provisions of this Guaranty and those of (a) the Credit Agreement, the provisions of the Credit Agreement shall control, (b) the Collateral Agreement,
the provisions of the Collateral Agreement shall control and (c) any other Loan Document not referenced in clauses (a) and (b) above, the provisions of this Guaranty shall control; provided that the inclusion of supplemental rights
or remedies in favor of the Administrative Agent or the other Secured Parties in any other Loan Document shall not be deemed a conflict with this Guaranty. 

SECTION 5.15 Advice of Counsel, No Strict Construction. Each of the parties represents to each other party hereto that it has discussed
this Guaranty with its counsel. The parties hereto have participated jointly in the negotiation and drafting of this Guaranty. In the event an ambiguity or question of intent or interpretation arises, this Guaranty shall be construed as if drafted
jointly by the parties hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any provisions of this Guaranty. 

SECTION 5.16 Acknowledgements. Each Guarantor hereby acknowledges that it has received a copy of the Credit Agreement and has reviewed
and understands the same. 
 SECTION 5.17 Releases. 

(a) Subject to Section 11.9 of the Credit Agreement, at such time as the Guaranteed Obligations (other than
(1) contingent indemnification obligations, (2) obligations and liabilities under Secured Cash Management Agreements or Secured Hedge Agreements as to which arrangements satisfactory to the applicable Cash Management Bank or Hedge Bank
shall have been made and (3) Letters of Credit that have either been Cash Collateralized or as to which arrangements satisfactory to the Issuing Lender have been made) shall have been paid in full in cash and the Commitments have been
terminated, this Guaranty and all obligations (other than those expressly stated to survive such termination or as may be reinstated after such termination) of the Administrative Agent and each Guarantor hereunder shall automatically terminate, all
without delivery of any instrument or performance of any act by any party. 

  
 12 

 (b) In the event that all the Equity Interests of any Guarantor of the Borrower shall be sold,
transferred or otherwise disposed of in a transaction permitted by the Credit Agreement, then, at the request of the Borrower and at the expense of the Guarantor, such Guarantor shall be released from its obligations hereunder and the Administrative
Agent will execute and deliver to such Guarantor such documents as such Guarantor may reasonably request to evidence the release of such Guarantor from its obligations under this Guaranty, in each case, in accordance with the terms of this Guaranty
and Section 11.9 of the Credit Agreement. 
 SECTION 5.18 Additional Guarantors. Each Subsidiary of the
Borrower that is required to become a party to this Guaranty pursuant to Section 8.14 of the Credit Agreement shall become a Guarantor for all purposes of this Guaranty upon execution and delivery by such Subsidiary of a
supplement in form and substance satisfactory to the Administrative Agent. 
 SECTION 5.19 Secured Parties. Each Secured Party not a
party to the Credit Agreement who obtains the benefit of this Guaranty shall be deemed to have acknowledged and accepted the appointment of the Administrative Agent pursuant to the terms of the Credit Agreement, and that with respect to the actions
and omissions of the Administrative Agent hereunder or otherwise relating hereto that do or may affect such Secured Party, the Administrative Agent and each of its Affiliates shall be entitled to all the rights, benefits and immunities conferred
under Article XI of the Credit Agreement. 
 SECTION 5.20 Borrower Guaranty. The Borrower hereby guarantees to the
Administrative Agent for the benefit of the Secured Parties, and their respective permitted successors and assigns, the full payment and performance of each Guarantor’s obligations under any Secured Hedge Agreements and Secured Cash Management
Agreements. In furtherance of the foregoing, references herein to “Guarantor” (other than references in Sections 2.1 and 2.3) shall include the Borrower solely in its capacity as a guarantor pursuant to this
Section 5.20. 
 [Signature Pages to Follow] 

  
 13 

 IN WITNESS WHEREOF, each of the Guarantors has executed and delivered this Guaranty under seal by
their duly authorized officers, all as of the day and year first above written. 
  

			
	NV NAP 2, LLC, as Guarantor
		
	By:	 	 /s/ Gabriel Nacht

	Name:	 	Gabriel Nacht
	Title:	 	Chief Financial Officer
	
	NV NAP 7, LLC, as Guarantor
		
	By:	 	 /s/ Gabriel Nacht

	Name:	 	Gabriel Nacht
	Title:	 	Chief Financial Officer
	
	NV NAP 8, LLC, as Guarantor
		
	By:	 	 /s/ Gabriel Nacht

	Name:	 	Gabriel Nacht
	Title:	 	Chief Financial Officer
	
	NV NAP 9, LLC, as Guarantor
		
	By:	 	 /s/ Gabriel Nacht

	Name:	 	Gabriel Nacht
	Title:	 	Chief Financial Officer
	
	SUPERNAP RENO, LLC, as Guarantor
		
	By:	 	 /s/ Gabriel Nacht

	Name:	 	Gabriel Nacht
	Title:	 	Chief Financial Officer

 Switch, Ltd. 

Amended and Restated Subsidiary Guaranty Agreement 

Signature Pages 

  

 
			
	SINAP - TIX, LLC, as Guarantor
		
	By:	 	 /s/ Gabriel Nacht

	Name:	 	Gabriel Nacht
	Title:	 	Chief Financial Officer
	
	SWITCH BUSINESS SOLUTIONS, LLC, as Guarantor
		
	By:	 	 /s/ Gabriel Nacht

	Name:	 	Gabriel Nacht
	Title:	 	Chief Financial Officer
	
	SUPERNAP GRAND RAPIDS, LLC, as Guarantor
		
	By:	 	 /s/ Gabriel Nacht

	Name:	 	Gabriel Nacht
	Title:	 	Chief Financial Officer

 Switch, Ltd. 

Amended and Restated Subsidiary Guaranty Agreement 

Signature Pages 

 
			
	SWITCH, LTD., as Borrower
		
	By:	 	 /s/ Gabriel Nacht

	Name:	 	Gabriel Nacht
	Title:	 	Chief Financial Officer

 Switch, Ltd. 

Amended and Restated Subsidiary Guaranty Agreement 

Signature Pages 

 
			
	Acknowledged by the Administrative Agent as of the day and year first written above:
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as Administrative Agent
		
	By:	 	 /s/ Olga E. Wisnicky

	Name:	 	Olga E. Wisnicky
	Title:	 	Senior Vice President

 Switch, Ltd. 

Amended and Restated Subsidiary Guaranty Agreement 

Signature PagesExhibit 10.1

		

			EXHIBIT 10.1

		

		
			PAYCHEX, INC.
2002 STOCK INCENTIVE PLAN
		

		
			(as amended and restated effective October 14, 2015)

		

		
			PERFORMANCE-BASED RESTRICTED STOCK AWARD AGREEMENT 
		

		
			﻿
		

		
			﻿
		

			
					
						Participant Name

					
					
						Efrain Rivera

				
	
					
						Award Date

					
					
						September 6, 2017

				
	
					
						Performance Period

					
					
						June 1, 2017 through May 31, 2020

				
	
					
						Maximum Number of Restricted Shares

					
					
						21,089

				

		
			﻿
		

		
			﻿
		

			
	
			
				 1.
			Grant of Restricted Stock.  This Performance-Based Restricted Stock Award Agreement (this “Award Agreement”), made as of September 6, 2017 (the “Date of Grant”), serves to notify you that the Governance and Compensation Committee (the “Committee”) of the Board of Directors of Paychex, Inc. (the “Company”) hereby grants to you, under the Company’s 2002 Stock Incentive Plan, as amended and restated effective October 14, 2015 (the “Plan”), an award of Restricted Stock (the “Restricted Stock” or “Award”) of 21,089 shares of the Company’s $.01 par value common stock (the “Common Stock,” and the shares awarded by this Agreement, the “Restricted Stock Shares”).  The Plan is incorporated herein by reference and made a part of this Award Agreement.  You may obtain a copy of the Plan from the Office of the Corporate Secretary.  You should review the terms of this Award Agreement and the Plan carefully.  The capitalized terms used in this Award Agreement are defined in the Plan.

			
	
			
				 2.
			Vesting of Restricted Stock.  

			
	
			
				 (a)
			Time Vesting Condition.  Vesting is contingent on your continued employment as an executive of the Company or one of its Affiliates through the date of the Committee’s review and certification of the 2018, 2019 and 2020 Net Income following completion of fiscal year 2020 (the “Vesting Date”).  Except as otherwise provided by Section 3, if your employment as an executive of the Company or one of its Affiliates terminates before the Vesting Date for any reason, then the Award shall be forfeited and cancelled immediately.  

			
	
			
				 (b)
			Performance Vesting Condition.  Subject to the terms set forth in this Award Agreement and the Plan, and except as otherwise provided by Section 3, the Award will vest in full upon the Committee’s review and certification of the 2018, 2019 and 2020 Net Income following completion of fiscal year 2020, if the Net Income for each of the 2018 fiscal year, 2019 fiscal year and 2020 fiscal year equals or exceeds the $500 million for such fiscal year, respectively.  If the Restricted Stock Shares do not vest pursuant to this Section 2 (after the application of Section 3), the Restricted Stock Shares shall be forfeited.  “Net Income” for a specified period means the Net Income, as determined by the values reported in the Company’s 
		

		 

 

			annual audited financial statements for such period, but excluding the following:  asset write-downs or impairments; litigation or claim judgments or settlements; material changes in tax law, or other such laws or provisions affecting reported results; cumulative effect of accounting changes as defined by generally accepted accounting principles, and as identified in the Company’s audited financial statements; gains or losses from the acquisition or disposition of businesses or assets, or discontinued operations; restructuring charges; severance, contract termination and other costs related to entering or exiting certain business activities; and unusual or infrequently occurring items.

			
	
			
				 3.
			Effect of Certain Events.

			
	
			
				 (a)
			Effect of Death and Disability.  In the event of your death or Disability before the Vesting Date, the Award will automatically vest in full as of the date of your death or Disability.

			
	
			
				 (c)
			Termination without Cause or Resignation for Good Reason.

			
	
			
				 (i)
			In the event of your termination without Cause or resignation for Good Reason on or before the last day of the 2018 fiscal year, then as soon as practicable following the end of the 2018 fiscal year, the Committee shall review and certify the Net Income for the 2018 fiscal year, and if the Net Income for of the 2018 fiscal year equals or exceeds $500 million, the Award will immediately vest in full upon the Committee’s review and certification of the Net Income for the 2018 fiscal year.

			
	
			
				 (ii)
			In the event of your termination without Cause or resignation for Good Reason after the last day of the 2018 fiscal year and before the Award has vested or been forfeited, then unless the Committee (in its sole and absolute discretion) waives the performance vesting condition for the fiscal year in which your termination occurs, as soon as practicable following the end of the fiscal year in which your termination occurs, the Committee shall review and certify the Net Income for the fiscal year in which your termination occurs, and if the Net Income for the fiscal year in which your termination occurs equals or exceeds $500 million, the Award will immediately vest in full upon the Committee’s review and certification of the Net Income for the fiscal year in which your termination occurs.

			
	
			
				 (iii)
			Effect of Other Termination.  Upon your termination for a reason other than death, Disability, termination without Cause or resignation for Good Reason prior to the Vesting Date, then the Award shall be forfeited and cancelled immediately.  

			
	
			
				 (d)
			Definitions.  For purposes of this Award Agreement, the following terms shall have the following meanings.

			
	
			
				 (i)
			“Base Salary” means your annual gross salary on the Date of Grant before any deductions, exclusions or any deferrals or contributions under any Company plan or program.

			
	
			
				 (iv)
			“Bonus Amount” means your annual cash incentive as established by the Committee at target for the applicable performance period.  If your annual cash incentive 
		

		 

		

			2

		

		

			 

		

 

			has not been established, the Bonus Amount will mean the prior year’s target annual cash incentive.

			
	
			
				 (v)
			“Cause” means your (1) dereliction of duty to the Company; (2) your conviction for a felony; or (3)  your willful misconduct that has a substantial adverse effect on the Company.

			
	
			
				 (vi)
			“Good Reason” means:

			
	
			
				 (1)
			the Company removes you from, or fails to re-elect or appoint you to, any material duties or position with the Company that were assigned or held by you as of the Date of Grant, except that a nominal change in your title that is merely descriptive and does not affect your rank, duties, or position shall not constitute such an event; 

			
	
			
				 (2)
			the Company assigns you any duties inconsistent with your position (including offices, titles and reporting requirements), authority, duties or responsibilities with the Company in effect as of the Date of Grant and materially adverse to you; 

			
	
			
				 (3)
			the Company takes any action that results in a material diminution of your position, authority, duties or responsibilities with the Company in effect as of the Date of Grant or otherwise takes any action that materially interferes therewith; 

			
	
			
				 (4)
			the Company reduces your Base Salary, Bonus opportunity or other elements of Total Compensation (performance-based elements being measured based on the value of the award opportunity), as in effect immediately prior to such reduction, other than a reduction that is immaterial (for this purpose, reductions aggregating $10,000 will be deemed to be material);

			
	
			
				 (5)
			the Company relocates your principal workplace to an area that is located outside of a radius of fifty (50) miles from the location of your principal workplace immediately prior to the Date of Grant; or

			
	
			
				 (6)
			the failure of any successor to the Company to assume this Award Agreement.

		
			Upon the occurrence of an event that would constitute Good Reason, you shall notify the Company of the occurrence of such event within ninety (90) days after you obtain actual knowledge thereof.  If the Company has taken action within thirty (30) days after receipt of such notice to fully cure such event so that it would no longer constitute Good Reason, then Good Reason will be deemed to not have arisen based on the cured event.  If Good Reason arises and is not cured, the Good Reason will be deemed to exist for a period of one year after the last day of the cure period.
		

			
	
			
				 (vii)
			“Total Compensation” means your Base Salary, Bonus Amount, equity compensation and all other items of your compensation.

			
	
			
				 4.
			Withholding.  The grant and the vesting of the Restricted Stock is conditioned upon your making arrangements satisfactory to the Company for the payment to the Company of the 
		

		 

		

			3

		

		

			 

		

 

			amount of all taxes required by any governmental authority to be withheld and paid over by the Company or any Affiliate to the governmental authority on account of such grant or vesting.  The payment of such withholding taxes to the Company may be made (a) by you in cash or by check, (b) subject to the consent of the Company and in accordance with any guidelines established by the Committee, by the Company retaining the number of the shares of Common Stock that would otherwise be delivered to you upon vesting of the Restricted Stock that have an aggregate Fair Market Value (at the time retained by the Company) equal to the amount of withholding taxes (using your minimum required tax withholding rate or such other rate that the Company determines will not trigger a negative accounting impact to the Company) required to be paid, or (c) by the Company or any Affiliate withholding such taxes from any other compensation owed to you by the Company or any Affiliate.  Unless you make arrangements prior to vesting of the Restricted Stock to pay withholdings taxes in cash or by check, or to have such withholding taxes withheld from other compensation owed to you by the Company or any Affiliate, then at the time of vesting of the Restricted Stock, the Company shall have the right to retain the number of the shares of Common Stock that would otherwise be delivered to you upon vesting of the Restricted Stock that have an aggregate Fair Market Value (at the time retained by the Company) equal to the amount of withholding taxes (using your minimum required tax withholding rate or such other rate that the Company determines will not trigger a negative accounting impact to the Company) required to be paid.

			
	
			
				 5.
			Non-competition, Non-solicitation, Confidentiality, and Detrimental Conduct.  In consideration for the Award, you agree that during your employment and for a period of twelve (12) months following termination of employment for any reason, you will not, directly or indirectly, either as an employee, employer, consultant, agent, principal, partner, stockholder, corporate officer, board member, director, or in any other individual or representative capacity, engage or attempt to engage in any activity that is competitive to the business of the Company within the geographic and substantive area or areas of responsibility assigned to the you during the last twenty-four (24) months of employment.  In addition, you agree that for a period of eighteen (18) months following the termination of employment for any reason, you will not directly or indirectly by assisting others, solicit Company clients, prospects or referral resources; nor will you recruit or hire, or attempt to recruit or hire any other employee of the Company or its Affiliates, or induce or attempt to induce any employee of the Company to terminate employment with the Company. You also agree and acknowledge that during the course of your employment with the Company, you will obtain, have access and be privy to nonpublic information important to the Company’s business solely as a result of employment with the Company, which information you hereby acknowledge and agree to be confidential (“Confidential Information”).  You agree that during and after employment, you shall not divulge or make use of any Confidential Information, directly or indirectly, personally or on behalf of any other person, business, corporation, or entity without prior written consent of the Company.  You further agree that you will not, during your employment, engage in conduct which is detrimental to the Company, including violation of the Company’s Code of Business Ethics and Conduct, criminal conduct, fraud, or willful misconduct.  These covenants are not intended to, and do not, limit in any way the rights and remedies provided to the Company under the Plan, other agreements with you, or under common or statutory law.

		 

		

			4

		

		

			 

		

 

			
	
			
				 6.
			Repayment of Financial Gain.

			
	
			
				 (a)
			If you fail to comply with Section 5 of this Award Agreement, the Company may cancel this Award, and recover from you,  the total number or Vesting Date value of the number of vested Restricted Stock Shares during the twenty-four (24) month period preceding your breach of any covenant in Section 5 of this Award Agreement.  The total number or Vesting Date value of the number of vested Restricted Stock Shares shall not be reduced for the payment of applicable taxes or other amounts.

			
	
			
				 (e)
			If you fail to comply with Section 5 of this Award Agreement, upon demand by the Company, you will repay the Company in accordance with the terms of Section 12(a), and the Company shall be entitled to offset the amount of any such repayment obligation against any amount owed to you by the Company.  The remedies set forth in this Section are in addition to any other remedies the Company may have, at law or equity, for your violation of the terms of this Award Agreement.

			
	
			
				 7.
			Transfer of Award.  The Restricted Stock, and the right to vote the Restricted Stock Shares, may not, except as otherwise provided in the Plan, be sold, assigned, transferred, pledged or encumbered in any way prior to the vesting of the Restricted Stock Shares, whether by operation of law or otherwise, except by will or the laws of descent and distribution.  After the Vesting Date, the vested Restricted Stock Shares may be issued during your lifetime only to you, or after your death to your designated beneficiary, or, in the absence of such beneficiary, to your duly qualified personal representative.

			
	
			
				 8.
			Rights as a Stockholder.    Except as otherwise provided by this Section 8, you will have the rights of a stockholder with respect to the Restricted Stock Shares, including, but not limited to, the right to vote (in person or by proxy) such Restricted Stock Shares at any meeting of stockholders of the Company.  Notwithstanding the foregoing, no dividends will be paid on any unvested Restricted Stock Shares.

			
	
			
				 9.
			Limitation of Rights.  Neither the Plan, the granting of the Award nor this Award Agreement gives you any right to remain in the employment of the Company or any Affiliate.

			
	
			
				 10.
			Rights of Company and Affiliates.  This Award Agreement does not affect the right of the Company or any Affiliate to take any corporate action whatsoever, including without limitation its right to recapitalize, reorganize or make other changes in its capital structure or business, merge or consolidate, issue bonds, notes, shares of Common Stock or other securities, including preferred stock, or options therefor, dissolve or liquidate, or sell or transfer any part of its assets or business.

			
	
			
				 11.
			Plan Controls.  The Award is subject to all of the provisions of the Plan, which is hereby incorporated by reference, and is further subject to all the interpretations, amendments, rules and regulations that may from time to time be promulgated and adopted by the Committee pursuant to the Plan.  In the event of any conflict among the provisions of the Plan and this Award Agreement, the provisions of the Plan will be controlling and determinative.

			
	
			
				 12.
			Amendment.  Except as otherwise provided by the Plan, the Company may only alter, amend or terminate the Award with your consent.

		 

		

			5

		

		

			 

		

 

			
	
			
				 13.
			Governing Law.  This Award Agreement shall be governed by and construed in accordance with the laws of the State of New York, except as superseded by applicable federal law, without giving effect to its conflicts of law provisions.  All parties consent to exclusive personal jurisdiction in New York courts and agree that venue shall be New York State Supreme Court, Monroe County.

			
	
			
				 14.
			Section 409A.  The Restricted Stock is intended to qualify for an exemption from the requirements of Section 409A of the Internal Revenue Code of 1986, as amended, and the treasury regulations promulgated and other official guidance issued thereunder (collectively, “Section 409A”), and the Plan and this Award Agreement shall be administered and interpreted consistent with such intention.  The Company’s right to offset pursuant to Section 6(b) is limited to the extent that and until the application of an offset at a given time would not result in a violation of Section 409A.

			
	
			
				 15.
			Dodd-Frank Clawback.  Notwithstanding any provision of this Award Agreement to the contrary, this Award is subject to clawback under any policy adopted by the Company implementing Section 10D of the Securities Exchange Act of 1934, as amended, and any regulations promulgated, or national securities exchange listing conditions adopted, with respect thereto, as described in the Plan.

		
			*  *  *  *  *
		

		 

		

			6

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