Document:

Amendment to Loan Documents

 Exhibit 10.1 
  
 Silicon Valley Bank 
  
 Amendment to Loan Documents 
  

			
	Borrower:	 	Internap Network Services Corporation
	Date:	 	September 30, 2004

  
 THIS AMENDMENT TO
LOAN DOCUMENTS (this “Amendment”) is entered into between Silicon Valley Bank (“Silicon”) and the borrower named above (“Borrower”). 
  
 Silicon and Borrower agree to amend the Loan and Security Agreement between them, dated October 21, 2002 (as otherwise
amended, if at all, the “Loan Agreement”), as follows, effective as of the date hereof. (Capitalized terms used but not defined in this Amendment shall have the meanings set forth in the Loan Agreement.) 
  
 1. Amended Schedule. The Schedule to the Loan Agreement is hereby
amended in its entirety to read as set forth in the Amended and Restated Schedule to Loan and Security Agreement of even date herewith. 
  
 2. Certain Provisions Only Applicable on Event of Default. The provisions of Sections 4.3, 4.4 (except for the last sentence thereof) and 4.5 of
the Loan Agreement shall only be applicable after the occurrence and during the continuance of an Event of Default. Silicon and the Borrower agree that the Borrower’s failure to satisfy the $40 Million Requirement (as defined in the Amended and
Restated Schedule to Loan and Security Agreement) will not, in and of itself, constitute an Event of Default; however, such failure shall affect the applicability of certain provisions of the Loan Agreement (as set forth herein) and of the Amended
and Restated Schedule to Loan and Security Agreement.  
  
 3. Modified Section 4.4. Borrower and Silicon hereby agree that, notwithstanding anything to the contrary, the last sentence of Section 4.4 shall continue in effect and shall read as follows: 
  
 Silicon may, in its good faith business judgment, require that all proceeds
of Collateral be deposited by Borrower into a lockbox account pursuant to an account agreement in such form as Silicon may specify in its good faith business judgment. 
  
 4. Modified Audit Provision. The first sentence of Section 5.4 of the Loan Agreement is hereby amended to read as
follows: 
  
 At reasonable times, and on one Business Day’s
notice, Silicon, or its agents, shall have the right to inspect the Collateral, and the right to audit and copy Borrower’s books and records; provided, however, that as long as Borrower satisfies the $40 Million Requirement, no
such audits will be required, otherwise, the audits will be performed no more frequently than annually, and in all cases unless (i) Silicon believes that it is advisable to do conduct audits more frequently in Silicon’s good faith business
judgment, or (ii) a Default or Event of Default has occurred and is continuing. 
  
 5. Modified Early Termination Provision. Section 6.2 of the Loan Agreement is hereby amended in its entirety to read as follows: 
  
 6.2 Early Termination. This Agreement may be terminated prior to the Maturity Date as follows: (i) by
Borrower, effective three Business Days after written notice of termination is given to Silicon; or (ii) by Silicon at any time after the occurrence and during the continuance of an Event of Default, without notice, effective immediately. If this
Agreement is terminated by Borrower or by Silicon under this Section 6.2, or if Borrower prepays Term Loan II prior to its maturity date, Borrower shall pay to Silicon a termination fee in an amount equal to the following, as applicable: (a) two and
one-half percent (2.5%) of the amount of the outstanding principal balance of Term Loan II if Term Loan II is terminated on or before the first anniversary of the date of the Amended and Restated Schedule to Loan and Security Agreement, (b) one and
one-half percent (1.5%) of the amount of the outstanding principal balance of Term Loan II if Term Loan II is terminated after the first anniversary but on or before the second anniversary of the date of the Amended and Restated Schedule to Loan and
Security Agreement, (c) one-half of one percent (0.5%) of the amount of the outstanding principal balance of Term Loan II if Term Loan II is terminated after the second anniversary but on or before the third anniversary of the date of the Amended
and Restated Schedule to Loan and Security Agreement, and (d) no termination fee with respect to Term Loan II will be charged if Term Loan II is terminated after the third anniversary of the date of the Amended and Restated Schedule to Loan and
Security Agreement, provided further that no termination fee shall be charged if the credit facility hereunder is replaced with a new facility from another division of Silicon Valley Bank. The termination fee shall be due and payable
on the effective date of termination and thereafter shall bear interest at a rate equal to the highest rate applicable to any of the Obligations. 

 6. Streamline Facility Agreement of No Force and Effect. The parties hereby agree that that
certain Streamline Facility Agreement between them dated October 21, 2002 shall be of no further force and effect. 
  
 7. Fee. In consideration of Silicon entering into this Amendment, Borrower shall pay Silicon the fees as set forth in the Amended and Restated
Schedule to Loan and Security Agreement of even date herewith. 
  
 8. Representations True. Borrower represents and warrants to Silicon that all representations and warranties set forth in the Loan Agreement, as amended hereby, are true and correct as of the date hereof. 
  
 9. General Provisions. This Amendment, the Loan Agreement, any prior
written amendments to the Loan Agreement signed by Silicon and Borrower, and the other written documents and agreements between Silicon and Borrower set forth in full all of the representations and agreements of the parties with respect to the
subject matter hereof and supersede all prior discussions, representations, agreements and understandings between the parties with respect to the subject hereof. Except as herein expressly amended, all of the terms and provisions of the Loan
Agreement, and all other documents and agreements between Silicon and Borrower shall continue in full force and effect and the same are hereby ratified and confirmed. 
  

							
	Borrower:	 	Silicon:
		
	INTERNAP NETWORK SERVICES CORPORATION	 	SILICON VALLEY BANK
				
	By	 	 /s/ David A Buckel

	 	By	 	 /s/ Dale Kirkland

	 	 	President or Vice President	 	Title	 	Sr. Vice President
				
	By	 	 /s/ Walter G. DeSocio

	 	 	 	 
	 	 	Secretary or Ass’t Secretary	 	 	 	 

 CONSENT 
  
 The undersigned acknowledges that the undersigned’s consent to the foregoing Amendment is not required, but the undersigned nevertheless does hereby
consent to the foregoing Amendment and to the documents and agreements referred to therein and to all future modifications and amendments thereto, and any termination thereof, and to any and all other present and future documents and agreements
between or among the foregoing parties. Nothing herein shall in any way limit any of the terms or provisions of the Continuing Guaranty of the undersigned, all of which are hereby ratified and affirmed. 
  

							
	 CO SPACE, INC.
	 	CO SPACE CONSTRUCTION, LLC
				
	 By
	 	 /s/ David A. Buckel

	 	By:	 	Co Space Services, LLC, its sole member
				
	 Title
	 	Vice President and CFO	 	By:	 	Co Space, Inc., its sole member
				
	 	 	 	 	By	 	 /s/ David A. Buckel

	 	 	 	 	Title	 	Vice President
		
	 CO SPACE SERVICES, LLC
	 	CO SPACE SERVICES TEXAS, L.P.
				
	 By:
	 	Co Space, Inc., its sole member	 	By:	 	Co Space Services, LLC, its general partner
				
	 	 	 	 	By:	 	Co Space, Inc., its sole member
				
	 By
	 	 /s/ David A. Buckel

	 	By	 	 /s/ David A. Buckel

	 Title
	 	Vice President	 	Title	 	Vice President
		
	 CO SPACE PROPERTIES, LLC
	 	CO SPACE PROPERTIES TEXAS, L.P.
				
	 By:
	 	Co Space Services, LLC, its sole member	 	By:	 	Co Space Services, LLC, its general partner
				
	 By:
	 	Co Space, Inc., its sole member	 	By:	 	Co Space, Inc., its sole member
				
	 By
	 	 /s/ David A. Buckel

	 	By	 	 /s/ David A. Buckel

	 Title
	 	Vice President	 	Title	 	Vice President
			
	 VPNX.COM, INC.
	 	 	 	 
				
	 By
	 	 /s/ David A. Buckel

	 	 	 	 
	 Title
	 	Vice PresidentAmended and Restated Schedule

 Exhibit 10.2 
  
 Silicon Valley Bank 
  
 Amended and Restated 
  
 Schedule to Loan and Security Agreement 
  

			
	Borrower:	 	Internap Network Services Corporation
	Address:	 	250 Williams Street NW
	 	 	Suite E100
	 	 	Atlanta, GA 30303
		
	Date:	 	September 30, 2004

  
 This Amended and Restated Schedule
forms an integral part of the Loan and Security Agreement between Silicon Valley Bank and the above-borrower dated October 21, 2002, and amends and restates in its entirety the prior Schedule to Loan and Security Agreement (as previously amended,
the “Original Schedule”), effective as of the date hereof. 
  

			
	 1. CREDIT LIMIT
     (Section 1.1):
	  	An amount equal to the sum of 1, 2 and 3 below:
		
	 	  	 1.      Revolving Loans. An amount not to exceed (a) or (b) below, as applicable (the “Revolving
Loans”):

		
	 	  	 (a)    Loans in the aggregate not to exceed $15,000,000 (the “Maximum Revolving Credit Limit”),
provided that Loans under this subclause 1(a) shall only be available to Borrower as long as Borrower maintains, at all times, at least $40,000,000 in unrestricted cash and cash equivalents (excluding any Loans under this Agreement) in
accounts maintained at Silicon (the “$40 Million Requirement”); or

		
	 	  	 (b)    If Borrower does not satisfy the $40 Million Requirement, then the lesser of (i) $15,000,000 (the
“Maximum Revolving Credit Limit”) at any one time outstanding or (ii) 85% (the “Advance Rate”) of Borrower’s Eligible Accounts (as defined in Section 8 above);

		
	 	  	 Silicon may, from time to time, modify the Advance Rate, in its good faith business judgment, upon notice to the Borrower, based on changes in collection
experience with respect to Accounts or other issues or factors relating to the Accounts or other Collateral.

		
	 	  	plus
		
	 	  	 2.      Term Loan I. The term loan previously made to Borrower by Silicon in the original principal
amount of $5,000,000, the current outstanding principal balance of which is $2,083,333.31 (“Term Loan I”). Term Loan I shall continue to be repaid in thirty-six equal monthly installments of principal, having commenced on October 1,
2002, and continuing on the first day of each of the succeeding thirty-five months. Interest shall continue to be paid monthly on the outstanding principal balance of Term Loan I at the rate set forth in Section 1.2 below;

		
	 	  	plus
		
	 	  	 3.      Term Loan II. Silicon is making concurrently herewith a term loan in the initial principal amount
of $17,500,000 (“Term Loan II”), the proceeds of which are to be used to refinance any existing Cisco capital lease obligations and any other outstanding capital lease obligations. Term Loan II shall be repaid in forty-eight equal
monthly installments of principal commencing October 1, 2004 and continuing on the first day of each of the succeeding forty-seven months. Interest shall be paid monthly on the outstanding principal balance of Term Loan II at the rate set forth in
Section 1.2 below.

		
	 	  	As used in this Agreement, “Loans” includes the Revolving Loans, Term Loan I and Term Loan II.

			
	 Letter of Credit Sublimit (Section 1.6):
	  	$5,000,000.
		
	ACH Services and	  	 
	Reserves:	  	Borrower may use up to $300,000 of Revolving Loans available hereunder for Silicon’s cash management services relating to ACH services. Silicon may, in its sole discretion, reserve
against Revolving Loans which would otherwise be available hereunder such sums as Silicon shall determine in its good faith business judgment in connection therewith, and Silicon may charge to Borrower’s Revolving Loan account, any amounts that
may become due or owing to Silicon in connection therewith. Borrower agrees to execute and deliver to Silicon all standard form applications and agreements of Silicon in connection with such cash management services, and, without limiting any of the
terms of such applications and agreements, Borrower will pay all standard fees and charges of Silicon in connection therewith. All obligations arising in connection with such cash management services shall be due and payable on the Maturity Date and
shall otherwise be deemed terminated on the Maturity Date.
	 2. INTEREST.
	  	 
		
	 Interest Rate (Section 1.2):
	  	 
	 	  	With respect to Revolving Loans and related Obligations: A rate equal to the “Prime Rate” in effect from time to time, plus 0.50% per annum; provided,
however, after the Borrower has achieved two consecutive fiscal quarters of profitability in excess of $0.00 and as long as Borrower continues to maintain such profitability, then a rate equal to the “Prime Rate” in effect from time
to time. Interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed. “Prime Rate” means the rate announced from time to time by Silicon as its “prime rate;” it is a base rate upon which
other rates charged by Silicon are based, and it is not necessarily the best rate available at Silicon. The interest rate applicable to the Obligations shall change on each date there is a change in the Prime Rate.
		
	 	  	Compliance with the foregoing profitability requirement for purposes of effecting an interest rate reduction shall be determined by Silicon and shall not be effective until Silicon is
reasonably satisfied as to compliance therewith. Further, and notwithstanding the foregoing, no reduction of the applicable interest rate in accordance with the foregoing provisions shall occur if a Default or Event of Default is then
occurring.
		
	 	  	With respect to Term Loan I and related Obligations: A fixed rate equal to eight percentage points (8.00%) on a per annum basis. Interest shall be calculated on the basis of a 360-day
year for the actual number of days elapsed.
		
	 	  	With respect to Term Loan II and related Obligations: Either (1) or (2) below, at Borrower’s option, to be determined by Borrower prior to the funding of Term Loan
II:
		
	 	  	 (1)    The interest rate shall be a rate equal to the Prime Rate (as defined above) in effect from time to time, plus
2.25% per annum. Interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed. The interest rate applicable to the Obligations pertaining to Term Loan II shall change on each date there is a change in the
Prime Rate; or

		
	 	  	 (2)    The interest rate shall be a fixed rate equal to seven and one-half percentage points (7.50%) on a per annum
basis. Interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed.

		
	Minimum Monthly Interest (Section 1.2):	  	Not Applicable.

					
	 3. FEES (Section 1.4):
	  	 	  	 
		
	         Loan Fee:
	  	With respect to the Revolving Loans:
		
	 	  	$60,000, payable concurrently herewith.
		
	 	  	With respect to Term Loan II:
		
	 	  	$65,000, payable concurrently herewith.
		
	         Unused Line Fee:
	  	In the event, in any calendar month (or portion thereof at the beginning and end of the term hereof), the average daily principal balance of the Revolving Loans outstanding during
the month is less than the amount of the Maximum Revolving Credit Limit, Borrower shall pay Silicon an unused line fee in an amount equal to 0.125% per annum on the difference between the amount of the Maximum Revolving Credit Limit and the average
daily principal balance of the Revolving Loans outstanding during the month, computed on the basis of a 360-day year, which unused line fee shall be computed and paid monthly, in arrears, on the first day of the following month.
		
	 4. MATURITY DATE
         (Section 6.1):
	  	 With respect to Revolving Loans and related Obligations:
 September 29, 2005 [364 days from the date of this Amended and Restated Schedule to Loan and Security Agreement].

		
	 	  	With respect to Term Loan I and related Obligations: As set forth in Section 1 above regarding Term Loan I.
		
	 	  	With respect to Term Loan II and related Obligations: As set forth in Section 1 above regarding Term Loan II.
		
	 5. FINANCIAL COVENANTS
         (Section 5.1):
	  	Borrower shall comply with each of the following covenants. Compliance shall be determined as of the end of each month, except as otherwise specifically provided
below:
		
	         Minimum
         Quick Ratio:
	  	As of the end of each month, Borrower shall maintain a Quick Ratio of not less than 1.50 to 1.0; provided, however, as long as Borrower satisfies the $40 Million
Requirement, then the foregoing Quick Ratio financial covenant will be determined as of the end of each fiscal quarter.
		
	         Minimum
         Cash EBITDA:
	  	Borrower shall maintain a minimum Cash EBITDA (as defined below) of not less than the following:
			
	 	  	For the quarter ending September 30, 2004: 	  	<$4,250,000>;
			
	 	  	For the quarter ending December 31, 2004: 	  	<$4,000,000>;
			
	 	  	For the quarter ending March 31, 2005:	  	<$1,500,000>;
			
	 	  	For the quarter ending June 30, 2005:	  	<$1,000,000>;
			
	 	  	For the quarter ending September 30, 2005:	  	<$250,000>;
			
	 	  	For the quarter ending December 31, 2005:	  	$250,000;
			
	 	  	For the quarter ending March 31, 2006:	  	$500,000;
			
	 	  	For the quarter ending June 30, 2006:	  	$1,000,000;
			
	 	  	For the quarter ending September 30, 2006:	  	$1,250,000;
			
	 	  	For the quarter ending December 31, 2006:	  	$1,500,000; and
			
	 	  	For the quarter ending March 31, 2007 and each quarter ending thereafter: 	  	$1,750,000.
		
	 	  	 

			
	         Definitions.
	  	For purposes of the foregoing financial covenants, the following term shall have the following meaning:
		
	 	  	“< >” shall mean a negative figure or loss, as applicable.
		
	 	  	“Cash EBITDA” shall mean Borrower’s EBITDA less Unfunded Capital Expenditures, all determined in accordance with generally accepted accounting principles, consistently
applied.
		
	 	  	“Current assets”, “current liabilities” and “liabilities” shall have the meaning ascribed thereto by GAAP.
		
	 	  	“EBITDA” shall mean Borrower’s earnings before interest, taxes, depreciation, amortization and other non-cash expenses of Borrower (including, without limitation, non-cash
stock option expenses), all as determined in accordance with generally accepted accounting principles, consistently applied.
		
	 	  	“Quick Assets” shall mean, on any given date, the Borrower’s unrestricted cash, cash equivalents and net billed accounts receivable.
		
	 	  	“Quick Ratio” shall mean, on any given date, the ratio of (i) Borrower’s Quick Assets to (ii) Borrower’s current liabilities (including the then outstanding principal
balance of the Loans) less the current portion of Borrower’s deferred revenues.
		
	 	  	“Unfunded Capital Expenditures” shall mean the purchases of fixed assets not funded by long-term debt, capitalized leases or equity.
		
	 6. REPORTING.
     (Section 5.3):
	  	 
		
	 	  	Borrower shall provide Silicon with the following:
		
	 	  	 1.      Quarterly accounts receivable agings, aged by invoice date, within thirty days after the end of each
fiscal quarter; provided, however, if Borrower does not satisfy the $40 Million Requirement, then such agings shall be provided monthly within thirty days after the end of each month.

		
	 	  	 2.      Quarterly accounts payable agings, aged by invoice date, and outstanding or held check registers, if
any, within thirty days after the end of each fiscal quarter; provided, however, if Borrower does not satisfy the $40 Million Requirement, then such agings shall be provided monthly within thirty days after the end of each
month.

		
	 	  	 3.      Quarterly borrowing base certificate, in form specified by Silicon, within thirty days after the end
of each fiscal quarter; provided, however, if Borrower does not satisfy the $40 Million Requirement, then such borrowing base certificate shall be provided monthly within thirty days after the end of each month.

		
	 	  	 4.      Quarterly reconciliations of accounts receivable agings (aged by invoice date), transaction reports,
and general ledger, within thirty days after the end of each fiscal quarter; provided, however, if Borrower does not satisfy the $40 Million Requirement, then such reconciliations shall be provided monthly within thirty days after the
end of each month.

		
	 	  	 5.      Borrower’s Form 10-Q, including financial statements, as soon as available, and in any event
within thirty days after the end of each fiscal quarter; provided, however, if Borrower does not satisfy the $40 Million Requirement, then monthly unaudited financial statements, as soon as available, and in any event within thirty
days after the end of each month.

		
	 	  	 6.      Quarterly Compliance Certificates, within thirty days after the end of each fiscal quarter, in such
form as Silicon shall reasonably specify, signed by the Chief Financial Officer of Borrower, certifying that as of the end of such quarter Borrower was in full compliance with all of the terms and conditions of this Agreement, and setting forth
calculations showing compliance with the financial covenants set forth in this Agreement and such other information as Silicon shall reasonably request, including, without limitation, a statement that at the end of such month there were no held
checks; provided, however, if Borrower does not satisfy the $40 Million Requirement, then such Compliance Certificate shall be provided monthly within thirty days after the end of each month.

			
	 	  	 7.      Annual operating budgets (including income statements, balance sheets and cash flow statements, by
month) for the upcoming fiscal year of Borrower within thirty days prior to the end of each fiscal year of Borrower.

		
	 	  	 8.      Borrower’s Form 10-K, including annual financial statements, as soon as available, and in any
event within 90 days following the end of Borrower’s fiscal year, certified by, and with an unqualified opinion of, independent certified public accountants acceptable to Silicon.

	 7. BORROWER INFORMATION:
	  	 
	 	  	Borrower represents and warrants that the information set forth in the Representations and Warranties of the Borrower dated November 5, 2002, previously submitted to Silicon (the
“Representations”) is true and correct as of the date hereof.
	 8. ADDITIONAL PROVISIONS
	  	 
	 	  	 (1)    Banking Relationship. Borrower shall at all times maintain its primary operating banking
relationship with Silicon and shall use its reasonable good faith efforts to maintain its investment accounts with or through Silicon. As to any Deposit Accounts and investment accounts maintained with another institution, Borrower shall cause such
institution, within 30 days after the date of this Agreement, to enter into a control agreement in form acceptable to Silicon in its good faith business judgment in order to perfect Silicon’s first-priority security interest in said Deposit
Accounts and investment accounts.

		
	 	  	 (2)    Subordination of Inside Debt. All present and future indebtedness of Borrower to its officers,
directors and shareholders (“Inside Debt”) shall, at all times, be subordinated to the Obligations pursuant to a subordination agreement on Silicon’s standard form. Borrower represents and warrants that there is no Inside Debt
presently outstanding, except for the following: NONE. Prior to incurring any Inside Debt in the future, Borrower shall cause the person to whom such Inside Debt will be owed to execute and deliver to Silicon a subordination agreement on
Silicon’s standard form.

		
	 	  	 (3)    Guaranty and Security Agreement. Previously, each of CO Space, Inc., CO Space Services, LLC, CO
Space Services Texas, LP, CO Space Properties, LLC, CO Space Properties Texas, LP, CO Space Construction, LLC and VPNX.com, Inc. (collectively, the “Guarantors”) executed and delivered to Silicon a Continuing Guaranty and Security
Agreement on Silicon’s standard form with such changes thereto as were acceptable to Silicon in its discretion, pursuant to which the Guarantors guaranty the Borrower’s Obligations and each Guarantor granted to Silicon a first priority
security interest in the assets of such Guarantor to secure such Guarantor’s obligations. Borrower shall cause such Guaranty and Security Agreement to remain in full force and effect while any Obligations remain outstanding and while this
Agreement is in effect.

		
	 	  	 (4)    Inactive Subsidiaries. The following are subsidiaries of Borrower, but the same are, and will
remain throughout the term of this Agreement, inactive, with assets having an aggregate value of less than $10,000 (in the aggregate for all such subsidiaries): (a) Internap Corporation and (b) Internap Technologies, Inc.

  

							
	 Borrower:
	 	 	 	 Silicon:
	 	 
		
	     INTERNAP NETWORK SERVICES CORPORATION
	 	 SILICON VALLEY BANK

				
	 By
	 	 /s/ David A Buckel

	 	 By
	 	 /s/ Dale Kirkland

	 	 	 President or Vice President
	 	 Title
	 	 Sr. Vice President

				
	 By
	 	 /s/ Walter G. DeSocio

	 	 	 	 
	 	 	 Secretary or Ass’t Secretary

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