Document:

Exhibit 10.1

 

DEAL CUSIP NUMBER:  36250LAD6
 REVOLVER CUSIP NUMBER:  36250LAE4
 TERM LOAN CUSIP NUMBER:  36250LAF1
 TRANCHE B TERM LOAN CUSIP NUMBER:  36250LA69

 

AMENDMENT NO. 1

 

This AMENDMENT NO. 1, dated as of June 28, 2016 (this “Amendment”), among the following:  (i) GTT Communications, Inc., a Delaware corporation as the borrower (the “Borrower”); (ii) the existing lenders signatory hereto that are party to the Credit Agreement referred to below (each an “Existing Lender” and collectively, the “Existing Lenders”); (iii) KeyBank National Association, as the administrative agent (the “Administrative Agent”), and (iv) the Additional Tranche B Term Loan Lenders (as hereinafter defined).

 

RECITALS:

 

WHEREAS, reference is hereby made to the Credit Agreement, dated as of October 22, 2015 (as supplemented by the May 2016 Incremental Term Loan Assumption Agreement (defined below) and as the same may be further amended, restated, amended and restated, supplemented, extended, refinanced or otherwise modified from time to time, the “Credit Agreement”), by and among the Borrower, the Existing Lenders, the Administrative Agent, SunTrust Bank, as the Syndication Agent, KeyBank Capital Markets Inc. and SunTrust Robinson Humphrey, Inc., as Joint Lead Arrangers and Joint Bookrunners, and MUFG Union Bank, N.A., Pacific Western Bank, CIT Bank, N.A., ING Capital LLC, Société Générale and CoBank, ACB as Co-Documentation Agents.  Capitalized terms used in this Amendment but not defined herein shall have the meaning assigned to such terms in the Credit Agreement;

 

WHEREAS, on May 3, 2016, the Borrower, the Administrative Agent and KeyBank National Association, as an Incremental Term Lender, entered into an Incremental Term Loan Assumption Agreement (the “May 2016 Incremental Term Loan Assumption Agreement”), pursuant to which KeyBank National Association, as an Incremental Term Lender, made Incremental Term Loans in the aggregate principal amount of $30,000,000 (the “May Incremental Term Loans”) in accordance with Section 2.17 of the Credit Agreement;

 

WHEREAS, on the date hereof, the Borrower, the Administrative Agent and the Lenders party hereto desire to amend the Credit Agreement to create the Tranche B Term Loans (as defined in Section 1 hereto), the proceeds of which will be used to repay in full the outstanding principal amount of the Term Loans made on the Closing Date (the “Closing Date Term Loans”) in accordance with Section 2.13(a);

 

WHEREAS, upon the effectiveness of this Amendment, each Lender that shall have executed and delivered a consent to this Amendment substantially in the form of Exhibit A hereto (a “Consent”) indicating the “Cashless Settlement Option” (each, a “Cashless Option Lender”) shall be deemed to have exchanged all of its Closing Date Term Loans for Tranche B Term Loans in the same aggregate principal amount as such Lender’s Closing Date Term Loans as of the Amendment No. 1 Effective Date and prior

 

 

to giving effect to this Amendment, and such Lenders shall thereafter become Tranche B Term Loan Lenders in accordance with the provisions hereof;

 

WHEREAS, upon the effectiveness of this Amendment, the Additional Tranche B Term Loan Lender will make Additional Tranche B Term Loans (as defined in Section 1 hereto) to the Borrower, the proceeds of which will be used by the Borrower to repay in full the outstanding principal amount of Closing Date Term Loans that are not exchanged for Tranche B Term Loans, as well as to prepay Closing Date Term Loans from Lenders that execute and deliver a Consent indicating the “Post-Closing Settlement Option” (each, a “Post-Closing Option Lender”), and the Borrower shall pay to each Lender all accrued and unpaid interest through, but not including, the Amendment No. 1 Effective Date with respect to such Closing Date Term Loans; and

 

WHEREAS, pursuant to Section 11.12 of the Credit Agreement, (a) the consent of 100% of the Cashless Option Lenders, the Post-Closing Option Lenders and the Additional Tranche B Term Loan Lender is required in connection with the establishment of the Tranche B Term Loan Commitments and the making of the Tranche B Term Loans on the Amendment No. 1 Effective Date, (b) the consent of 100% of the Lenders with Revolving Commitments is required in connection with the modifications to the definition of “Applicable Revolving Loan Margin” contemplated herein, and (c) the consent of the Required Lenders is required for the effectiveness of certain of the other amendments to the Credit Agreement set forth in this Amendment, and each of the Lenders whose consent is required pursuant to the foregoing clauses (a) through (c) has agreed to the foregoing as evidenced by their signature to this Amendment or their delivery of a Consent to the Administrative Agent.

 

NOW, THEREFORE, in consideration of the premises, agreements, provisions and covenants herein contained, the parties hereto agree as follows:

 

Section 1.                                 Amendment.  Effective on the Amendment No. 1 Effective Date and subject to the satisfaction of the terms and conditions set forth herein:

 

(a)                                 The following definitions are hereby added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order:

 

“Additional Tranche B Term Loan Commitment” means, with respect to the Additional Tranche B Term Loan Lender, the commitment of such Additional Tranche B Term Loan Lender to make Additional Tranche B Term Loans on the Amendment No. 1 Effective Date, in an amount equal to $ $46,943,625.00.

 

“Additional Tranche B Term Loan Lender” means KeyBank National Association, in its capacity as a Lender of Additional Tranche B Term Loans.

 

“Additional Tranche B Term Loan” has the meaning set forth in Section 2.03(b)(i).

 

“Amendment No. 1” means Amendment No. 1 to this Agreement, dated as of the Amendment No. 1 Effective Date.

 

“Amendment No. 1 Effective Date” means June 28, 2016, which is the first Business Day on which all of the conditions precedent set forth in Section 4 of Amendment No. 1 have been satisfied or waived and the Tranche B Term Loans are funded or deemed funded through a cashless settlement pursuant to Section 2.03(b), as applicable.

 

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“Bail-In Action” means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

 

“Bail-In Legislation” means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

 

“Cashless Option Lender” means each Lender that has executed and delivered a Consent to Amendment No. 1 indicating the “Cashless Settlement Option.”

 

“Closing Date Term Commitment” means, with respect to each Lender, the amount, if any, set forth opposite such Lender’s name in Schedule 1 hereto as its “Term Commitment” on the Closing Date or in the case of any Lender that becomes a party hereto pursuant to an Assignment Agreement, the amount set forth in such Assignment Agreement, as such commitment may be reduced from time to time as a result of assignments to or from such Lender pursuant to Section 11.06.

 

“Closing Date Term Loan” has the meaning provided in Section 2.03(a).

 

“Consent” means a consent to Amendment No. 1 substantially in the form of Exhibit A attached thereto.

 

“EEA Financial Institution” means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent;

 

“EEA Member Country” means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

 

“EEA Resolution Authority” means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

 

“EU Bail-In Legislation Schedule” means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

 

“May 2016 Incremental Term Loan Assumption Agreement” means the Incremental Term Loan Assumption Agreement, dated as of May 3, 2016, the Borrower, the Administrative Agent, and KeyBank National Association, as an Incremental Term Lender.

 

“May 2016 Incremental Term Loans” means the Incremental Term Loans in the aggregate principal amount of $30,000,000 made by KeyBank National Association, as

 

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an Incremental Term Lender, to the Borrower in accordance with Section 2.17 of the Credit Agreement.

 

“Non-Exchanging Lender” means each Lender holding Closing Date Term Loans on the Amendment No. 1 Effective Date that (i) did not execute and deliver a Consent on or prior to the Amendment No. 1 Effective Date or (ii) is a Post-Closing Option Lender.

 

“Post-Closing Option Lender” means each Lender that executed and delivered a Consent to Amendment No. 1 indicating the “Post-Closing Settlement Option.”

 

“Tranche B Term Loan” means, collectively, (i) Closing Date Term Loans exchanged for a like principal amount of Tranche B Term Loans pursuant to Section 2.03(b)(i) and (ii) each Additional Tranche B Term Loan made pursuant to Section 2.03(b)(ii), in each case on the Amendment No. 1 Effective Date.

 

“Tranche B Term Loan Commitment” means the Additional Tranche B Term Loan Commitment and the Tranche B Term Loan Exchange Commitments.  After giving effect to Amendment No. 1, on the Amendment No. 1 Effective Date, the aggregate amount of the Tranche B Term Loan Commitments shall be $429,000,000.

 

“Tranche B Term Loan Exchange Commitment” means the agreement of a Lender to exchange its Closing Date Term Loans for an equal aggregate principal amount of Tranche B Term Loans on the Amendment No. 1 Effective Date, as evidenced by such Lender executing and delivering its Consent and indicating the “Cashless Settlement Option.”

 

“Tranche B Term Loan Lender” means, collectively, (i) each Lender that executes and delivers a Consent and indicates the “Cashless Settlement Option” prior to the Amendment No. 1 Effective Date, (ii) the Additional Tranche B Term Loan Lender and (iii) after the Amendment No. 1 Effective Date, each Lender with an outstanding Tranche B Term Loan.

 

“Tranche B Term Loan Maturity Date” means October 22, 2022.

 

“Tranche B Term Loan Repricing Event” means (a) any prepayment or refinancing of any Tranche B Term Loans (or any portion thereof) with the proceeds of, or any conversion of any Tranche B Term Loans (or any portion thereof) into, any new or replacement loans or similar bank indebtedness the primary purpose of which results in such new or replacement loans or similar bank indebtedness bearing interest with an “effective yield” (taking into account, for example, upfront fees, interest rate spreads, interest rate benchmark floors and original issue discount but excluding any arrangement, structuring, syndication, and other fees paid in connection therewith that are not paid to all Lenders providing such new debt) less than the “effective yield” applicable to the Tranche B Term Loans subject to such event (as such comparative yields are reasonably determined by the Administrative Agent acting in good faith) and (b) any amendment to Loan Documents the primary purpose of which is to reduce the “effective yield” applicable to all or a portion of Tranche B Term Loans (as such comparative yields are reasonably determined by the Administrative Agent acting in good faith).

 

“Transformative Acquisition” means any Acquisition by the Borrower or any of its Restricted Subsidiaries that is either (a) not permitted by the terms of Loan Documents

 

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immediately prior to the consummation of such Acquisition, or (b) involves total aggregate consideration in excess of $500,000,000.

 

“Write-Down and Conversion Powers” means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

 

(b)                                 The definition of “Applicable Revolving Loan Margin” is hereby amended and restated in its entirety as follows:

 

“Applicable Revolving Loan Margin” means (a) from the Closing Date until the Amendment No. 1 Effective Date, (i) 375 basis points for Revolving Loans that are Base Rate Loans and (ii) 475 basis points for Revolving Loans that are Eurodollar Loans, and (b) on and after the Amendment No. 1 Effective Date, (i) 325 basis points for Revolving Loans that are Base Rate Loans and (ii) 425 basis points for Revolving Loans that are Eurodollar Loans.

 

(c)                                  The definition of “Applicable Term Loan Margin” is hereby amended and restated in its entirety as follows:

 

“Applicable Term Loan Margin” means (a) with respect to Closing Date Term Loans, (i) 425 basis points for Term Loans that are Base Rate Loans and (ii) 525 basis points for Term Loans that are Eurodollar Loans, (b) with respect to Tranche B Term Loans, (i) 375 basis points for Tranche B Term Loans that are Base Rate Loans and (ii) 475 basis points for Tranche B Term Loans that are Eurodollar Loans, (c) with respect to Incremental Term Loans, the rate or rates specified in the applicable Incremental Term Loan Assumption Agreement, and (d) with respect to any Extended Term Loans, the rate or rates specified in the applicable Extension Amendment.

 

(d)                                 The definition of “Defaulting Lender” is hereby amended by deleting the word “or” immediately preceding clause (d)(ii) thereof and replacing it with a comma and adding the adding the words “or (iii) become the subject of a Bail-in Action” immediately prior to the proviso contained therein.

 

(e)                                  The definition of Loan Documents is hereby amended and restated in its entirety as follows:

 

“Loan Documents” means this Agreement, the Notes, the Guaranty, the Security Documents, the Administrative Agent Fee Letter, the Fee Letter, the Intercompany Subordination Agreement, the May 2016 Incremental Term Loan Assumption Agreement, Amendment No. 1, each Letter of Credit and each other LC Document.

 

(f)                                   The definition of “Scheduled Repayment” is hereby amended and restated in its entirety as follows:

 

“Scheduled Repayment” means, with respect to any Term Loan, each regularly scheduled payment of principal as set forth in Section 2.13(b) with respect to such Term Loan or, if applicable, as set forth in an Incremental Assumption Agreement or Extension Agreement.

 

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(g)                                  The definition of “Term Commitment” is hereby amended and restated in its entirety as follows:

 

“Term Commitment” means, with respect to each Lender, the amount, if any, of its (a) Closing Date Term Commitment, (b) Tranche B Term Loan Commitment, or (c) Incremental Term Loan Commitment.  Upon the effectiveness of Amendment No. 1, the Closing Date Term Commitments shall be deemed terminated in full, and all Closing Date Term Loans paid in full from the proceeds of the Tranche B Term Loans.  Upon the effectiveness of Amendment No. 1, the Incremental Term Loan Commitments evidenced by the May 2016 Incremental Term Loan Assumption Agreement shall be deemed terminated in full and all May 2016 Incremental Term Loans paid in full from the proceeds of the Tranche B Term Loans.

 

(h)                                 The definition of “Term Loan” is hereby amended and restated in its entirety as follows:

 

“Term Loan” means, (a) the Closing Date Term Loans, (b) the Tranche B Term Loans, (c) the Incremental Term Loans, if any, and (d) the Extended Term Loans, if any.

 

(i)                                     The definition of “Term Loan Maturity Date” is hereby amended and restated in its entirety as follows:

 

“Term Loan Maturity Date” means, as applicable, (a) with respect to any Closing Date Term Loans, the Initial Term Loan Maturity Date, (b) with respect to Tranche B Term Loans, the Tranche B Term Loan Maturity Date, (c) with respect to any Incremental Term Loan, the Incremental Term Loan Maturity Date, (d) with respect to any Extended Term Loan, the applicable Extended Term Loan Maturity Date, or (e) with respect to all Term Loans, the latest of the dates referred to in clause (a), (b), (c) and (d).

 

(j)                                    Section 2.03 of the Credit Agreement is hereby amended in its entirety to be replaced with the following:

 

Section 2.03                             Term Loans.

 

(a)                                 On the Closing Date, each Lender that has a Closing Date Term Commitment severally, and not jointly, agrees, on the terms and conditions set forth in this Agreement, to make a term loan (each a “Closing Date Term Loan”) to the Borrower pursuant to such Lender’s Closing Date Term Commitment.

 

(b)                              On the Amendment No. 1 Effective Date, (i) each Cashless Option Lender agrees, severally, and not jointly, to exchange its Closing Date Term Loans for a like principal amount of Tranche B Term Loans, and (ii) the Additional Tranche B Term Loan Lender agrees to make additional Tranche B Term Loans (the “Additional Tranche B Term Loans”) to the Borrower on the Amendment No. 1 Effective Date in a principal amount not to exceed its Additional Tranche B Term Loan Commitment on the Amendment No. 1 Effective Date and the Borrower shall prepay all Closing Date Term Loans of Non-Exchanging Lenders with the gross proceeds of the Additional Tranche B Term Loans and all May 2016 Incremental Loans from the gross proceeds of the Additional Tranche B Term Loans.

 

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(c)                                  Each Lender having an Incremental Term Loan Commitment hereby severally, and not jointly, agrees on the terms and subject to the conditions set forth herein and in the applicable Incremental Term Loan Assumption Agreement, to make Incremental Term Loans to the Borrower, in an aggregate principal amount not to exceed its Incremental Term Loan Commitment.

 

(d)                                 With respect to all Term Loans, (i) once prepaid or repaid, may not be reborrowed, (ii) may, except as set forth herein, at the option of the Borrower, be incurred and maintained as, or Converted into, Term Loans that are Base Rate Loans or Eurodollar Loans, in each case denominated in Dollars, provided that all Term Loans made as part of the same Term Borrowing shall consist of Term Loans of the same Type; (iii) shall be repaid in accordance with Section 2.13(b), and (iv) shall not exceed for any Lender at the time of incurrence thereof the aggregate principal amount of such Lender’s Term Commitment, if any.

 

(k)                                 Section 2.13(b) of the Credit Agreement is hereby amended and restated in its entirety as follows:

 

(b)                                 Scheduled Repayments of Term Loans.

 

(i)                                     Closing Date Term Loans.  The Borrower shall repay the principal amount of the Closing Date Term Loans in equal quarterly installments of $1,000,000 each, commencing on March 31, 2016 and continuing thereafter on the last day of each calendar quarter until the Initial Term Loan Maturity Date, on which date the entire remaining principal amount of the outstanding Closing Date Term Loans shall be paid in full; provided, that each such repayment may be reduced by reason of the application of prepayments pursuant to Sections 2.13(a) and 2.13(c).

 

(ii)                                  Tranche B Term Loans.  The Borrower shall repay the principal amount of the Tranche B Term Loans in equal quarterly installments of $1,075,000 each, commencing on June 30, 2016 and continuing thereafter on the last day of each calendar quarter until the Tranche B Term Loan Maturity Date, on which date the entire remaining principal amount of the outstanding Tranche B Term Loans shall be paid in full; provided, that each such repayment may be reduced by reason of the application of prepayments pursuant to Sections 2.13(a) and 2.13(c).

 

(iii)                               Incremental Term Loans.  The Borrower shall pay to the Administrative Agent, for the account of the Lenders, on each Incremental Term Loan Repayment Date, a principal amount of the Other Term Loans (as adjusted from time to time pursuant to Sections 2.13(a), 2.13(c) and 2.17(d)) equal to the amount set forth for such date in the applicable Incremental Term Loan Assumption Agreement.  To the extent not previously paid, all Incremental Term Loans shall be due and payable on the applicable Incremental Term Loan Maturity Date.

 

(iv)                              Extended Term Loans.  In the event that any Extended Term Loans are made, the Borrower shall repay such Extended Term Loans on the dates and in the amounts set forth in the applicable Extension Amendment.  To

 

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the extent not previously paid, all Extended Term Loans shall be due and payable on the applicable Extended Term Loan Maturity Date.

 

(l)                                     Section 2.13(g) of the Credit Agreement is hereby amended to add the following new sentence immediately at the end thereto:

 

In the event that any Tranche B Term Loan Repricing Event occurs on or prior to the six month anniversary of the Amendment No. 1 Effective (but specifically excluding any Tranche B Term Loan Repricing Event that occurs or is deemed to have occurred in connection any transaction that would, if consummated, constitute a Change of Control or Transformative Acquisition), the Borrower shall pay to the Administrative Agent, for the benefit of the Tranche B Term Loan Lenders, concurrently with such Tranche B Term Loan Repricing Event, a premium in an amount equal to 1.00% of the outstanding principal amount of the Tranche B Term Loans subject to such Tranche B Term Loan Repricing Event.

 

(m)                             The following shall be added as a new Section 11.29 to the Credit Agreement:

 

Section 11.29                      Acknowledgement and Consent to Bail-In of EEA Financial Institutions.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:

 

(a)                                 the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and

 

(b)                                 the effects of any Bail-in Action on any such liability, including, if applicable:

 

(i)                                     a reduction in full or in part or cancellation of any such liability;

 

(ii)                                  a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or

 

(iii)                               the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

 

(n)                                 Exhibit A-3 (Form of Term Note) to the Credit Agreement is hereby replaced with Exhibit B attached to this Amendment.

 

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Section 2.                                 Certain Consents and Waivers.  Each Tranche B Term Loan Lender hereby consents to an Interest Period beginning on the Amendment No. 1 Effective Date and ending on September 30,  2016, in respect of the Borrowing or exchange into Tranche B Term Loans, which shall initially constitute Eurodollar Loans, on the Amendment No. 1 Effective Date.  The Lenders party hereto waive the payment of any breakage loss or expense under Section 3.02 of the Credit Agreement in connection with the exchange of Closing Date Term Loans into Tranche B Term Loans.  The Lenders party hereto waive any notice of prepayment of the Closing Date Term Loans on the Amendment No. 1 Effective Date that would otherwise be required pursuant to Section 2.13(a) of the Credit Agreement.

 

Section 3.                                 Credit Agreement Governs.  Except as set forth in this Amendment, the Tranche B Term Loans shall otherwise be subject to the provisions, including any provisions restricting the rights, or regarding the obligations, of the Credit Parties or any provisions regarding the rights of the Lenders, of the Credit Agreement and the other Loan Documents and, from and after the Amendment No. 1 Effective Date, each reference to a “Loan” or “Loans” in the Credit Agreement, as in effect on the Amendment No. 1 Effective Date, shall be deemed to include the Tranche B Term Loans, each reference to a “Commitment” shall be deemed to include the “Tranche B Term Loan Commitment” and each reference to a “Lender” or “Lenders” in the Credit Agreement shall be deemed to include the Tranche B Term Loan Lenders, and other related terms will have correlative meanings mutatis mutandis.

 

Section 4.                                 Conditions to Effectiveness.  The effectiveness of this Amendment and the obligations of the Tranche B Term Loan Lenders to make the Tranche B Term Loans shall become effective on the Amendment No. 1 Effective Date, which shall be the first Business Day on which the following conditions are satisfied or waived:

 

(i)                                     the Administrative Agent (or its counsel) shall have received counterparts of this Amendment or Consent that, when taken together, bear the signatures of Lenders constituting the Required Lenders as well as signatures of (A) each Cashless Option Lender and each Post-Closing Option Lender, (B) the Administrative Agent, (C) each Lender with a Revolving Commitment, (D) the Additional Tranche B Term Loan Lender, (E) the Borrower and (F) each Guarantor;

 

(ii)                                  the Administrative Agent shall have received a notice of Borrowing for the Additional Tranche B Term Loans (whether in writing or by telephone) in accordance with the Credit Agreement;

 

(iii)                               the Borrower shall have paid in full all accrued and unpaid interest owing in respect of the Closing Date Term Loans and the May 2016 Incremental Loans as of the Amendment No. 1 Effective Date;

 

(iv)                              the Administrative Agent’s receipt of the following, each of which shall be originals or facsimiles or electronic copies (followed promptly by originals) unless otherwise specified:

 

(A)                               a favorable opinion of counsel for the Borrower, in a form and substance reasonably satisfactory to the Administrative Agent;

 

(B)                               a certificate from a Responsible Officer of the Borrower dated as of the Amendment No. 1 Effective Date, and attaching the documents referred to in clause (C) below;

 

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(C)                               the Administrative Agent shall have received (i) resolutions of the Board of Directors and/or similar governing bodies of the Borrower approving and authorizing (a) the execution, delivery and performance of the Amendment  (and any agreements relating thereto) to which it is a party and (b) the extensions of credit contemplated hereunder, certified as of the Amendment No. 1 Effective Date by its secretary, an assistant secretary or a Responsible Officer as being in full force and effect without modification or amendment and (ii) a good standing certificate as of a recent date from the applicable Governmental Authority of the Borrower’s jurisdiction of incorporation, organization or formation;

 

(D)                               before and after giving effect to this Amendment and the borrowing of or exchange into the Tranche B Term Loans and to the application of any proceeds therefrom (i) no Default or Event of Default shall exist and (ii) all of the representations and warranties contained in the Credit Agreement and in the other Loan Documents shall be true and correct in all material respects at such time (unless stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date);

 

(E)                                the Administrative Agent shall have received from the Borrower an Officer’s Certificate certifying as to compliance with the preceding clause (D); and

 

(F)                                 the representations and warranties of each Credit Party set forth in Section 5 below shall be true and correct in all material respects; and

 

(v)                                 the fees in the amounts previously agreed in writing by KeyBank National Association (the “Amendment No. 1 Arranger”) to be received on the Amendment No. 1 Effective Date and all reasonable and documented or invoiced out-of-pocket costs and expenses (including the reasonable fees, charges of a single counsel to the Amendment No. 1 Arranger) incurred in connection with the transactions contemplated hereby for which invoices have been presented at least one (1) Business Day prior to the Amendment No. 1 Effective Date shall, upon the Borrowing of the Tranche B Term Loans, have been, or will be substantially simultaneously, paid in full.

 

Section 5.                                 Representations and Warranties.  By its execution of this Amendment, each Credit Party hereby represents and warrants to the Administrative Agent, the Tranche B Term Loan Lenders and the Lenders that the representations and warranties of each Credit Party set forth in Article V of the Credit Agreement or in any other Loan Documents are, after giving effect to this Amendment, true and correct in all material respects on and as of the Amendment No. 1 Effective Date (unless stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct in all material respects as of such earlier date).

 

Section 6.                                 Acknowledgments and Affirmations of the Credit Parties.  Each Credit Party hereby expressly acknowledges the terms of this Amendment and confirms and reaffirms, as of the date hereof, (i) the covenants and agreements contained in each Loan Document to which it is a party, including, in each case, such covenants and agreements as in effect immediately after giving effect to this Amendment and the transactions contemplated hereby and thereby, (ii) its guarantee of the Obligations (including, without limitation, the Tranche B Term Loans) under the Guaranty and (iii) its grant of Liens on the Collateral to secure the Obligations (including, without limitation, the Obligations with respect to the Tranche B Term Loans) pursuant to the Security Documents; provided that, on and after the effectiveness of this Amendment, each reference in the Guaranty and in each of the other Loan Documents to “the Credit Agreement”, “thereunder”, “thereof” or words of like import shall mean and be a reference to the Credit Agreement, as amended by this Amendment.  Without limiting the generality of the foregoing, the Security 

 

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Documents to which such Credit Party is a party and all of the Collateral described therein do, and shall continue to secure, payment of all of the Obligations.

 

Section 7.                                 Other.                         This Amendment, the Credit Agreement and the other Loan Documents constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties hereto with respect to the subject matter hereof.  Except as expressly set forth herein, this Amendment shall not by implication or otherwise limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of any party under, the Credit Agreement, nor alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  It is understood and agreed that each reference in each Loan Document to the Credit Agreement, whether direct or indirect, shall hereafter be deemed to be a reference to the Credit Agreement as amended by this Amendment and that this Amendment is a Loan Document.

 

Section 8.                                 Governing Law; Submission to Jurisdiction; Venue; Waiver of Jury Trial.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.  SECTION 11.08 OF THE CREDIT AGREEMENT ARE HEREBY INCORPORATED BY REFERENCE INTO THIS AMENDMENT AND SHALL APPLY MUTATIS MUTANDIS HERETO.

 

Section 9.                                 Severability.  Any term or provision of this Amendment which is invalid or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Amendment or affecting the validity or enforceability of any of the terms or provisions of this Amendment in any other jurisdiction. If any provision of this Amendment is so broad as to be unenforceable, the provision shall be interpreted to be only so broad as would be enforceable.

 

Section 10.                          Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or e-mail (including in a “.pdf” format) shall be effective as delivery of a manually executed counterpart of this Amendment.

 

[Signature pages follow.]

 

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IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to execute and deliver this Amendment as of the date first written above.

 

	
 
    	
GTT   COMMUNICATIONS, INC., as the Borrower
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Acknowledged and agreed   to by each of the undersigned Guarantors:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
GLOBAL   TELECOM & TECHNOLOGY AMERICAS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
GTT GLOBAL TELECOM   GOVERNMENT SERVICES, LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
GTT COMMUNICATIONS   (MP), INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
AMERICAN   BROADBAND, INC. D/B/A UNITED NETWORK SERVICES, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Amendment No. 1 Signature Page]

 

 

	
 
    	
ONE SOURCE NETWORKS   INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
NT NETWORK SERVICES,   LLC
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Amendment No. 1 Signature Page]

 

 

	
Consented to by:
    	
 
    
	
 
    	
 
    
	
KEYBANK NATIONAL ASSOCIATION,
    	
 
    
	
as Administrative Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Amendment No. 1 Signature Page]

 

 

	
KEYBANK NATIONAL   ASSOCIATION,  
   as Additional Tranche B Term Loan Lender 
   and Lender under the Revolving Facility
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Amendment No. 1 Signature Page]

 

 

	
SUNTRUST BANK., as a   Lender under the
    	
 
    
	
 Revolving Facility
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Amendment No. 1 Signature Page]

 

 

EXHIBIT A to Amendment No. 1

 

CONSENT TO AMENDMENT NO. 1

 

CONSENT (this “Consent”) to Amendment No. 1 (“Amendment”) to the Credit Agreement, dated as of October 22,, 2015 (as further amended, restated, amended and restated, supplemented, extended, refinanced or otherwise modified from time to time, the “Credit Agreement”), by and among GTT Communications, Inc., a Delaware corporation (the “Borrower”), the lending institutions from time to time parties thereto (each a “Lender” and, collectively, the “Lenders”), KeyBank National Association, as Administrative Agent (in such capacity, the “Administrative Agent”), SunTrust Bank, as the Syndication Agent, KeyBank Capital Markets Inc. and SunTrust Robinson Humphrey, Inc., as Joint Lead Arrangers and Joint Bookrunners, and MUFG Union Bank, N.A., Pacific Western Bank, CIT Bank, N.A., ING Capital LLC, Société Générale and CoBank, ACB as Co-Documentation Agents.  Capitalized terms used in this Consent but not defined in this Consent have the meanings assigned to such terms in the Credit Agreement (as amended by the Amendment).

 

Existing Lenders of Closing Date Term Loans.  The undersigned Lender hereby irrevocably and unconditionally approves the Amendment and consents as follows (check ONE option):

 

Cashless Settlement Option

 

o                                    to convert 100% of the outstanding principal amount of the Closing Date Term Loans held by such Lender (or such lesser amount allocated to such Lender by the Administrative Agent) into a Tranche B Term Loan in a like principal amount.

 

Post-Closing Settlement Option

 

o                                    to have 100% of the outstanding principal amount of the Closing Date Term Loans held by such Lender prepaid on the Amendment No. 1 Effective Date and purchase by assignment the principal amount of Tranche B Term Loans committed to separately by the undersigned (or such lesser amount allocated to such Lender by the Administrative Agent).

 

IN WITNESS WHEREOF, the undersigned has caused this Consent to be executed and delivered by a duly authorized officer as of the         of                        , 2016.

 

	
 
    	
                                                                                           ,
    
	
 
    	
as a Lender (type name   of the legal entity)
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
If a second signature   is necessary:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
Name of Fund Manager   (if   any):                                            
    	
 
    

 

 

EXHIBIT B to Amendment No. 1

 

EXHIBIT A-3

 

TERM NOTE

 

	
$                             
    	
                            ,   20     
    
	
 
    	
New York, NY
    

 

FOR VALUE RECEIVED, the undersigned GTT Communications, Inc., a Delaware corporation (the “Borrower”), hereby promises to pay to [                                             ] (the “Lender”) the principal sum of                                             ($        ) or, if less, the then unpaid principal amount of all [Closing Date Term Loans][Tranche B Term Loans][Incremental Term Loans] (the “Term Loans”) made by the Lender to the Borrower pursuant to the Credit Agreement referred to below (each capitalized term used herein without definition shall have the meaning ascribed thereto in the Credit Agreement), in Dollars and in immediately available funds, at the Payment Office on the applicable Term Loan Maturity Date.

 

The Borrower also promises to pay interest in like currency and funds at the Payment Office on the unpaid principal amount of each Term Loan made by the Lender from the date of such Term Loan until paid at the rates and at the times provided in Section 2.09 of the Credit Agreement.

 

This Term Note is one of the Notes referred to in the Credit Agreement, dated as of October 22, 2015, among the Borrower, the lenders from time to time party thereto (including the Lender), KeyBank National Association, as the Administrative Agent, SunTrust Bank, as Syndication Agent, and the other agents party thereto (as the same may be amended, restated, amended and restated or otherwise supplemented or modified from time to time, the “Credit Agreement”), and is entitled to the benefits thereof and of the other Loan Documents.  As provided in the Credit Agreement, the principal amount of this Term Note shall be repaid in accordance with Section 2.13 of the Credit Agreement and this Term Note is subject to mandatory repayment prior to the Term Loan Maturity Date, in whole or in part, in accordance with Section 2.13(c) of the Credit Agreement.

 

In case an Event of Default shall occur and be continuing, the principal of and accrued interest on this Term Note may be declared to be due and payable in the manner and with the effect provided in the Credit Agreement.

 

The Borrower hereby waives presentment, demand, protest or notice of any kind in connection with this Term Note, except as expressly set forth in the Credit Agreement. No failure to exercise, or delay in exercising, any rights hereunder on the part of the holder hereof shall operate as a waiver of any such rights.

 

THIS TERM NOTE SHALL BE CONSTRUED AND INTERPRETED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

 

THE UNDERSIGNED HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS TERM NOTE OR ANY OTHER LOAN DOCUMENT.

 

	
 
    	
GTT COMMUNICATIONS, INC.
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:Exhibit 10.01

 

PURCHASE AGREEMENT

 

THIS PURCHASE AGREEMENT
(“Agreement”) is made as of the 29th day of December, 2015, by and between H-Cell Energy Corporation,
a Nevada corporation (the “Company”), and __________________________ (the “Investor”).

 

Recitals

 

A.           The
Company and the Investor are executing and delivering this Agreement in reliance upon the exemption from securities registration
afforded by the provisions of Regulation D (“Regulation D”), as promulgated by the U.S. Securities and Exchange
Commission (the “SEC”) under Securities Act; and

 

B.           The Investor wishes
to purchase from the Company, and the Company wishes to sell and issue to the Investor, upon the terms and conditions stated in
this Agreement, 105,263 shares of the Company’s Common Stock (the “Shares”) for $50,000 (the “Purchase
Price”).

 

In consideration of
the mutual promises made herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.             Definitions.
In addition to those terms defined above and elsewhere in this Agreement, for the purposes of this Agreement, the following terms
shall have the meanings set forth below:

 

“Affiliate”
means, with respect to any Person, any other Person which directly or indirectly through one or more intermediaries Controls, is
controlled by, or is under common control with, such Person.

 

“Business
Day” means a day, other than a Saturday or Sunday, on which banks in New York City are open for the general transaction
of business.

 

“Closing”
and “Closings” have the meaning set forth in Section 3.

 

“Closing Date”
has the meaning set forth in Section 3.

 

“Common Stock”
means common stock of the Company.

 

“Control”
(including the terms “controlling”, “controlled by” or “under common control with”) means the
possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether
through the ownership of voting securities, by contract or otherwise.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended, or any successor statute, and the rules and regulations promulgated
thereunder.

 

     

     

    

 

“Material
Adverse Effect” means a material adverse effect on (i) the assets, liabilities, results of operations, condition (financial
or otherwise), business, or prospects of the Company and its Subsidiaries taken as a whole, or (ii) the ability of the Company
to perform its obligations under this Agreement.

 

“Person”
means an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically
listed herein.

 

“Securities
Act” means the Securities Act of 1933, as amended, or any successor statute, and the rules and regulations promulgated
thereunder.

 

2.           Purchase
and Issuance of the Shares

 

2.1           Shares.
Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6.1 and 6.2 below, the Company shall issue and
sell to the Investor, and the Investor shall purchase from the Company on the Closing Date (as defined below), the Shares.

 

3.           Closing.
The closing (“Closing”) of the purchase of the Shares by the Investor as contemplated by this Agreement shall
occur at the offices of Sichenzia Ross Friedman Ference LLP, 61 Broadway, 32nd Floor, New York, New York 10006. The
date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., New York time, on such date as is mutually
agreed to by the Company and the Investor. On or prior to the Closing Date, the Investor shall have delivered to the Company an
amount representing the Purchase Price, plus expenses as set forth herein.

 

4.           Representations
and Warranties of the Company. The Company hereby represents and warrants to the Investor that:

 

4.1           Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under the
laws of the jurisdiction of its incorporation and has all requisite corporate power and authority to carry on its business as now
conducted and to own its properties. The Company is duly qualified to do business as a foreign corporation and is in good standing
in each jurisdiction in which the conduct of its business or its ownership or leasing of property makes such qualification or leasing
necessary unless the failure to so qualify has not had and could not reasonably be expected to have a Material Adverse Effect.

 

4.2           Authorization.
The Company has full power and authority and has taken all requisite action on the part of the Company, its officers, directors
and stockholders necessary for (i) the authorization, execution and delivery of this Agreement, (ii) the authorization of the performance
of all obligations of the Company hereunder or thereunder, and (iii) the authorization, issuance and delivery of the Shares.
This Agreement constitutes the legal, valid and binding obligations of the Company, enforceable against the Company in accordance
with its terms, subject to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general
applicability, relating to or affecting creditors’ rights generally.

 

    	 	-2-	 

     

    

 

4.3           Valid
Issuance. The Shares have been duly and validly authorized and, when issued and paid for pursuant to this Agreement, will be
validly issued, fully paid and nonassessable, and shall be free and clear of all encumbrances and restrictions (other than those
created by the Investor), except for restrictions on transfer set forth in this Agreement or imposed by applicable securities laws.

 

4.4           Consents.
The execution, delivery and performance
by the Company of this Agreement and the offer, issuance and sale of the Shares require no consent of, action by or in respect
of, or filing with, any Person, governmental body, agency, or official other than filings that have been made pursuant to applicable
state securities laws and post-sale filings pursuant to applicable state and federal securities laws which the Company undertakes
to file within the applicable time periods. Subject to the accuracy of the representations and warranties of the Investor set
forth in Section 5 hereof, the Company has taken all action necessary to exempt (i) the issuance and sale of the Shares and (ii)
the other transactions contemplated by this Agreement from the provisions of any stockholder rights plan or other “poison
pill” arrangement, any anti-takeover, business combination or control share law or statute binding on the Company or to
which the Company or any of its assets and properties may be subject and any provision of the Company’s Articles of Incorporation,
Bylaws or other organizational or charter documents that is or could reasonably be expected to become applicable to the Investor
as a result of the transactions contemplated hereby, including without limitation, the issuance of the Shares and the ownership,
disposition or voting of the Shares by the Investor or the exercise of any right granted to the Investor pursuant to this Agreement.

 

4.5           Use
of Proceeds. The net proceeds of the sale of the Shares hereunder shall be used by the Company for working capital purposes.

 

4.6           No
Conflict, Breach, Violation or Default. The execution, delivery and performance of this Agreement by the Company and the issuance
and sale of the Shares will not conflict with or result in a breach or violation of any of the terms and provisions of, or constitute
a default under (i) the Company’s Articles of Incorporation, the Company’s Bylaws or other organizational or charter
documents, as in effect on the date hereof, or (ii)(a) any statute, rule, regulation or order of any governmental agency or body
or any court, domestic or foreign, having jurisdiction over the Company or any of its assets or properties, or (b) any agreement
or instrument to which the Company is a party or by which the Company is bound or to which any of its assets or properties is subject.

 

4.7           Brokers
and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest
or claim against or upon the Company or the Investor for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of the Company.

 

4.8           No
General Solicitation. Neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf, has engaged
in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or
sale of the Shares.

 

    	 	-3-	 

     

    

 

4.9           No
Integrated Offering. Neither the Company nor any of its Affiliates, nor any Person acting on its or their behalf has, directly
or indirectly, made any offers or sales of any Company security or solicited any offers to buy any security, under circumstances
that would adversely affect reliance by the Company on Regulation D for the exemption from registration for the transactions contemplated
hereby or would require registration of the Shares under the Securities Act.

 

4.10         Private
Placement. Assuming the representations and warranties of the Investor are true, the offer and sale of the Shares to the Investor
as contemplated hereby is exempt from the registration requirements of the Securities Act.

 

4.11         Capitalization.
As of the date of this Agreement, the authorized capital stock of the Company consists of 30,000,000 shares of Common Stock, of
which, 2,000,000 are issued and outstanding and no shares are reserved for issuance. No shares of Common Stock are held in treasury.
All of such outstanding shares are duly authorized and have been validly issued and are fully paid and non-assessable.

 

5.           Representations
and Warranties of the Investor. The Investor hereby represents and warrants as of the date hereof to the Company as follows:

 

5.1           Organization,
Good Standing and Qualification. The Investor is a statutory trust duly organized, validly existing and in good standing under
the laws of the jurisdiction of its formation and has all requisite trust power and authority to carry on its business as now conducted
and purchase the Shares.

 

5.2           Authorization.
The execution, delivery and performance by the Investor of this Agreement has been duly authorized and will constitute the legal,
valid and binding obligation of the Investor, enforceable against the Investor in accordance with its respective terms, subject
to bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability, relating
to or affecting creditors’ rights generally.

 

5.3           No
Public Sale or Distribution. The Investor is acquiring the Shares for its own account and not with a view towards, or for resale
in connection with, the public sale or distribution thereof in violation of applicable securities laws, except pursuant to sales
registered or exempted under the Securities Act; provided, however, by making the representations herein, such Investor does not
agree, or make any representation or warranty, to hold any of the Shares for any minimum or other specific term and reserves the
right to dispose of the Shares at any time in accordance with or pursuant to a registration statement or an exemption under the
Securities Act. The Investor is acquiring the Shares hereunder in the ordinary course of its business. Such Investor does not presently
have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Shares in violation of applicable
securities laws. Investor is not a broker-dealer registered with the SEC under the Exchange Act or an entity engaged in a business
that would require it to be so registered.

 

    	 	-4-	 

     

    

 

5.4           Investment
Experience. Investor acknowledges that it can bear the economic risk and complete loss of its investment in the Shares and
has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the
investment contemplated hereby.

 

5.5           Disclosure
of Information. The Investor and its advisors, if any, have been furnished with all materials relating to the business, finances
and operations of the Company and materials relating to the offer and sale of the Shares that have been requested by the Investor.
The Investor and its advisors, if any, have been afforded the opportunity to ask questions of the Company. The Investor understands
that its investment in the Shares involves a high degree of risk. The Investor has sought such accounting, legal and tax advice
as he has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

 

5.6           Restricted
Securities. Investor understands that the Shares are characterized as “restricted securities” under the U.S. federal
securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that
under such laws and applicable regulations such securities may be resold without registration under the Securities Act only in
certain limited circumstances. The Investor understands that the Shares are being offered and sold to it in reliance on specific
exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying
in part upon the truth and accuracy of, and Investor’s compliance with, the representations, warranties, agreements, acknowledgments
and understanding of Investor set forth herein in order to determine the availability of such exemptions and the eligibility of
Investor to acquire such securities.

 

5.7           Legends.
It is understood that, except as provided below, certificates evidencing the Shares may bear the following or any similar legend:

 

(a)          “THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL TO THE HOLDER
(IF REQUESTED BY THE COMPANY), IN A FORM REASONABLY ACCEPTABLE TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT
OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.”

 

(b)          If
required by the authorities of any state in connection with the issuance of sale of the Shares, the legend required by such state
authority.

 

    	 	-5-	 

     

    

 

5.8           No
Governmental Review. The Investor understands that no United States federal or state agency or any other government or governmental
agency has passed on or made any recommendation or endorsement of the Shares or the fairness or suitability of the investment in
the Shares nor have such authorities passed upon or endorsed the merits of the offering of the Shares.

 

5.9           Transfer
or Resale. The Investor understands that: (i) the Shares have not been and are not being registered under the Securities Act
or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered
thereunder, (B) the Investor shall have delivered to the Company (if requested by the Company) an opinion of counsel to the Investor,
in a form reasonably acceptable to the Company, to the effect that such Shares to be sold, assigned or transferred may be sold,
assigned or transferred pursuant to an exemption from such registration, or (C) the Investor provides the Company with reasonable
assurance that such Shares can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the Securities
Act (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Shares made in reliance on
Rule 144 may be made only in accordance with the terms of Rule 144, and further, if Rule 144 is not applicable, any resale of the
Shares under circumstances in which the seller (or the Person through whom the sale is made) may be deemed to be an underwriter
(as that term is defined in the Securities Act) may require compliance with some other exemption under the Securities Act or the
rules and regulations of the SEC promulgated thereunder; and (iii) neither the Company nor any other Person is under any obligation
to register the Shares under the Securities Act or any state securities laws or to comply with the terms and conditions of any
exemption thereunder.

 

5.10         Brokers
and Finders. No Person will have, as a result of the transactions contemplated by this Agreement, any valid right, interest
or claim against or upon the Company or the Investor for any commission, fee or other compensation pursuant to any agreement, arrangement
or understanding entered into by or on behalf of the Investor.

 

5.11         Accredited
Investor Status. The Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation
D.

 

5.12         Risk
Factors. The investment described herein involves a very high degree of risk and speculation and has the potential to result
in a one hundred percent (100%) loss without an effective legal remedy or recourse due to the nature of the investment.  The
Investor agrees to be entirely responsible for its own due diligence as to the veracity, accuracy or prospects of the Company or
the safety of the investment. The Investor cannot rely on any matter or representation made by the Company or any other
party relating to this investment, and shall be accountable for completing its own analysis and review of the risks, representations
and warranties of the Company or any party assisting or otherwise advising the Company or the Investor in this matter.

 

5.13         Residency.
The Investor is a resident of the State of Florida.

 

    	 	-6-	 

     

    

 

6.           Conditions to
Closing.

 

6.1           Conditions
to the Investor’s Obligations. The obligation of the Investor to purchase the Shares at the Closing is subject to the
fulfillment to the Investor’s satisfaction, on or prior to the Closing Date, of the following conditions, any of which may
be waived by the Investor:

 

(a)          The
representations and warranties made by the Company in Section 4 hereof qualified as to materiality shall be true and correct at
all times prior to and on the Closing Date, except to the extent any such representation or warranty expressly speaks as of an
earlier date, in which case such representation or warranty shall be true and correct as of such earlier date, and, the representations
and warranties made by the Company in Section 4 hereof not qualified as to materiality shall be true and correct in all material
respects at all times prior to and on the Closing Date, except to the extent any such representation or warranty expressly speaks
as of an earlier date, in which case such representation or warranty shall be true and correct in all material respects as of such
earlier date. The Company shall have performed in all material respects all obligations and covenants herein required to be performed
by it on or prior to the Closing Date.

 

(b)          No
judgment, writ, order, injunction, award or decree of or by any court, or judge, justice or magistrate, including any bankruptcy
court or judge, or any order of or by any governmental authority, shall have been issued, and no action or proceeding shall have
been instituted by any governmental authority, enjoining or preventing the consummation of the transactions contemplated in this
Agreement.

 

(c)          The
Company shall have delivered this executed Agreement to the Investor.

 

6.2           Conditions
to Obligations of the Company. The Company's obligation to sell and issue the Shares at the Closing is subject to the fulfillment
to the satisfaction of the Company on or prior to the Closing Date of the following conditions, any of which may be waived by the
Company:

 

(a)          The
representations and warranties made by the Investor in Sections 5.1 and 5.2 hereof (the “Investment Representations”),
shall be true and correct in all material respects when made, and shall be true and correct in all material respects on the Closing
Date with the same force and effect as if they had been made on and as of said date. The Investment Representations shall be true
and correct in all respects when made, and shall be true and correct in all respects on the Closing Date with the same force and
effect as if they had been made on and as of said date. The Investor shall have performed in all material respects all obligations
and covenants herein required to be performed prior to the Closing Date.

 

(b)          The
Investor shall have delivered the Purchase Price to the Company.

 

    	 	-7-	 

     

    

 

(c)          The
Investor shall have delivered this executed Agreement to the Company.

 

(d)          The
Investor shall have reimbursed the Company for all costs and expenses incurred by it (including, without limitation, all legal
fees and disbursements in connection therewith, structuring, documentation and implementation of the transactions contemplated
by this Agreement and due diligence and regulatory filings in connection therewith) in a non-accountable amount equal to $2,000.

 

6.3           Termination.
In the event that the Closing shall not have occurred by January 31, 2016, then at the close of business on such date the parties’
obligations hereunder to consummate the Closing shall automatically terminate without further liability of the parties to one another
solely in respect thereof. Notwithstanding anything to the contrary above, nothing contained in this Section 6.3 shall be deemed
to release any party from any liability for any breach by such party of the terms and provisions of this Agreement or to impair
the right of any party to compel specific performance by any other party of its obligations under this Agreement.

 

7.           Covenants
and Agreements of the Company.

 

7.1           Delivery
of Shares. The Company shall, within 15 Business Days of the Closing Date, delivery the Shares to the Investor.

 

7.2           No
Conflicting Agreements. The Company will not take any action, enter into any agreement or make any commitment that would conflict
or interfere in any material respect with the Company’s obligations to the Investor under this Agreement.

 

7.3           Compliance
with Laws. The Company will comply in all material respects with all applicable laws, rules, regulations, orders and decrees
of all governmental authorities.

 

8.           Survival.

 

8.1 Survival.
The representations, warranties, covenants and agreements contained in this Agreement shall survive each Closing of the transactions
contemplated by this Agreement.

 

9.           Miscellaneous.

 

9.1           Successors
and Assigns. This Agreement may not be assigned by a party hereto without the prior written consent of the Company or the Investor,
as applicable, which consent may be withheld in such parties absolute discretion. The provisions of this Agreement shall inure
to the benefit of and be binding upon the respective permitted successors and assigns of the parties. Nothing in this Agreement,
express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns
any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

 

    	 	-8-	 

     

    

 

9.2           Counterparts.
This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and delivered to the other party. In the event that
any signature is delivered by facsimile transmission or by an e-mail which contains a portable document format (.pdf) file of an
executed signature page, such signature page shall create a valid and binding obligation of the party executing (or on whose behalf
such signature is executed) with the same force and effect as if such signature page were an original thereof.

 

9.3           Titles
and Subtitles. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

 

9.4           Notices.
Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must
be in writing and will be deemed to have been delivered: (i) upon receipt, if delivered personally; and (ii) if sent by overnight
courier service, one (1) Business Day after deposit with an overnight courier service with next day delivery specified, in each
case, properly addressed to the party to receive the same. The addresses for such notices, consents, waivers or other communications
are as follows:

 

If to the Company:

 

H-Cell Energy Corporation

97 River Road

Flemington, New Jersey 08822

Attention: Andrew Hidalgo, Chief
Executive Officer

 

With a copy to:

 

Sichenzia Ross Friedman Ference
LLP

61 Broadway, 32nd Floor

New York, New York 10006 

Attention: Thomas A. Rose, Esq./James
M. Turner, Esq.

 

If to the Investor,
to the address set forth on the signature page.

 

or to such other address and/or to the
attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior
to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver
or other communication, or (B) provided by an overnight courier service shall be rebuttable evidence of personal service or receipt
from an overnight courier service in accordance with clause (i) or (ii) above, respectively.

 

9.5           Amendments
and Waivers. Any term of this Agreement may be amended and the observance of any term of this Agreement may be waived (either
generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company
and the Investor. Any amendment or waiver effected in accordance with this paragraph shall be binding upon each holder of any Shares
purchased under this Agreement at the time outstanding, each future holder of all such Shares, and the Company.

 

    	 	-9-	 

     

    

 

9.6           Severability.
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof but shall be interpreted
as if it were written so as to be enforceable to the maximum extent permitted by applicable law, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted
by applicable law, the parties hereby waive any provision of law which renders any provision hereof prohibited or unenforceable
in any respect.

 

9.7           Entire
Agreement. This Agreement constitutes the entire agreement among the parties hereof with respect to the subject matter hereof
and thereof and supersede all prior agreements and understandings, both oral and written, between the parties with respect to the
subject matter hereof and thereof.

 

9.8           Further
Assurances. The parties shall execute and deliver all such further instruments and documents and take all such other actions
as may reasonably be required to carry out the transactions contemplated hereby and to evidence the fulfillment of the agreements
herein contained.

 

9.9           Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial. This Agreement shall be governed by, and construed in accordance with,
the internal laws of the State of New York without regard to the choice of law principles thereof. Each of the parties hereto irrevocably
submits to the exclusive jurisdiction of the courts of the State of New York located in New York County and the United States District
Court for the Southern District of New York for the purpose of any suit, action, proceeding or judgment relating to or arising
out of this Agreement and the transactions contemplated hereby. Service of process in connection with any such suit, action or
proceeding may be served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices
under this Agreement. Each of the parties hereto irrevocably consents to the jurisdiction of any such court in any such suit, action
or proceeding and to the laying of venue in such court. Each party hereto irrevocably waives any objection to the laying of venue
of any such suit, action or proceeding brought in such courts and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT TO REQUEST
A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND REPRESENTS THAT COUNSEL HAS BEEN CONSULTED SPECIFICALLY AS
TO THIS WAIVER.

 

(Signature Pages Follow)

 

    	 	-10-	 

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Agreement or caused their duly authorized officers to execute this Agreement as of the date first
above written.

 

	The Company:	H/CELL ENERGY CORPORATION
	 	 
	 	By:	               
	 	Name:  Andrew Hidalgo
	 	Title:    Chief Executive Officer

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR INVESTOR FOLLOWS]

 

     

     

    

 

[INVESTOR
SIGNATURE PAGE TO H/CELL ENERGY PURCHASE AGREEMENT]

 

IN WITNESS WHEREOF,
the undersigned have caused this Purchase Agreement to be duly executed by their respective authorized signatories as of the date
first indicated above.

 

	Name of Investor: 	 
	 	 
	By:	        	 
	Name:	 
	Title:	 
	 	 
	Address for Notice of Investor:

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